The Customer Was Stuck in the Middle

Joe Clementi watched a sale die in real time this week. The fight that killed it had nothing to do with the customer.

Picture this. Joe Clementi is sitting in the sales tower when a service advisor walks in with a problem. A customer bought a car thirty days ago, something failed, and somebody has to decide what happens next. Before Joe can say a word, the GSM speaks first.

THIS WEEK ON FOM LIVE

Why We Keep Losing Customers in Our Own Showroom

"Why didn't you catch that during inspection?"

That was the first sentence out of the GSM's mouth. Not "how do we take care of this customer." Not "what does this person need from us." The advisor turned around and walked back to service knowing the conversation was already lost. He tried to negotiate 50/50. Service refused.

“Three departments, three pay plans, three sets of teeth clenched around the same number.”
The customer sat in the middle of a fight he didn't start.”

By the time it was over, “the dealer had spent a year's worth of trust to save a part.”

Joe calls this the protect-mine problem. Sales protects sales. Service protects service. Parts protects parts. Everyone is commission-driven, so everyone is guarding their slice. He pointed at Tesla as the opposite model: one price, no commission, the internal war never starts because the structure that creates it doesn't exist.

So why don't we just change it? Stephan Woessner had the answer on the same show. We have spent a hundred years training every person in this building to think transactionally. If I give something up, I lose something. So I have to claw it back somewhere. That mindset doesn't switch off when the customer walks in. It is how we walk in.

And here's the kicker, courtesy of Steven Granger. About ten years ago, AutoNation actually asked its salespeople a real question. Would you rather have a base salary and a per-car bonus, Saturn style, where you'll never hit a home run but you'll make a great living? They voted overwhelmingly to keep commission. They chose the dream of $250K over the certainty of $100K, even though most of them had never cleared $60K in their lives. That isn't a pay plan. That's a story people tell themselves to avoid changing.

Granger says the real fix is treating these jobs like real jobs. Pay the average advisor $50K with a $1,000 bonus for hitting metrics. Stop dangling the $200K outlier nobody ever becomes. The minute it looks like a real job, you get people who don't have to claw back every concession they make to a customer.

My honest take. Maybe the system needs to wash these people out. The 70 percent who refuse to change won't be missed. Their seats will get filled, and they'll get filled with younger people who have better ideas and actually want to treat customers like humans. That isn't a threat to the industry. That is the way out of it.

Because here is the part that should worry everyone reading this. Carvana does not have this problem. Amazon wouldn't tolerate it for an afternoon. The operators who survive the next decade are the ones who fix the pay plan before somebody outside the industry fixes it for us.

QUOTE OF THE WEEK

"You've trained them the entire time to have a transactional mindset. Everything they do, everything they think about is the transactional mindset. If I'm giving something, that means I'm losing something. So how do I get something back to offset the thing I lost? That's ingrained for 100 years."

“Stephan Woessner”

FROM THE PODCAST

UP NEXT: Stop Selling Repairs. Do This Instead | Chris Freter | FOM Podcast | Episode 2 |

We are staying on the human side of the business next week. Tune in Thursday at 2 PM ET.

See you Thursday

Stay Connected

Dave Foy
Fixed Ops Mastermind
fixedopsmastermind.com

Keep reading