The Road to ROI with F&I

Salesperson Development in Your Dealership: What Kind of Incentives Do They Want?

Posted by Vanguard Dealer Services on Jul 16, 2018 12:27:00 PM

Salesperson Development in Your Dealership: What Kind of Incentives Do They Want?

Developing a new sales team might sound overwhelming, though a lot of it is going to depend on proper training techniques and motivations.

If this sounds familiar, it's probably because this is how you trained a prior sales team in your dealership. The problem now is you may not have the time or money to properly train a new team.

On top of it, you're maybe trying to figure how you'll motivate your new sales team compared to your previous employees.

You'll need an effective sales strategy from a reliable car dealership consultant.

What Motivates Car Sales Teams Today?

According to statistics, most salespeople who sell cars aren't always motivated by money. Many of them are more motivated by accomplishment, self-actualization, challenges, and recognition.

It's possible to bring all of these through a new training process and creating new incentive programs. What makes a hiring a car dealership consultant so important is they can get you to this level without usurping your time.

Trying to find what motivates your sales team on your own could become a major time-consuming process. Besides, having an outside team for analysis is essential because it removes all internal bias you might have without you realizing it.

Creating a Motivation Plan in Selling F&I Products

Despite not all salespeople being motivated by money, it still helps in many incentive programs. Creating a compensation plan for selling F&I products is a good push to sell more. What's most important is to create this plan with your dealership consultant so they show you the top three steps in how to make it work.

First, they'll create it based on your unique goals. For many years, the basic consensus is that commissions shouldn't exceed 20% of all sales made on F&I products. It's just the beginning, though, on how to structure your plan.

Yours should meet not only short-term objectives, but long-term ones as well.

Direction on Achieving Goals

One key component to a successful compensation plan is to keep it as simple as possible. Your first major component should focus on directing how to achieve all dealership goals. Outlining on paper how you'll achieve this should become top of mind, including meeting with your entire staff so they're all on the same page.

Without direction on what you want to achieve in sales, you won't provide the fuel toward motivating your sales staff to perform well.

Creating a Motivational Pay Plan

What kind of pay plan should you include that keeps your sales staff continually pushing toward reaching your goal? You have to make the formula clear so there isn't any guesswork on what their commission is.

This needs a clear outline so everyone on your sales staff continues to maximize profits as much as possible up until the last day of the month. Your consultant team can show you how to create this so it keeps motivating employees into ensuing months rather than lose their momentum.

Bringing Fairness to the Plan

Consultants can also help you deal with fairness in your incentive plan so it doesn't look like your dealership is profiting more than your F&I manager.

It could take some negotiation time to work out a fair system. While you want to look out for your own best interests, the manager should have a fair commission to reward their work. Holding a meeting to work this out should become a top priority, though your consultant team is there to help work things out.

Even more important is a car dealership consultancy is also available to train your sales team so they're proficient in the latest sales techniques. Giving them knowledge is going to become one of the strongest motivators of all.

Contact us at Vanguard Dealer Services to learn more about the consultant services we offer, including creating powerful incentive programs.