In the world of car sales the clock is always ticking. Many times it’s ticking toward the end of the month which is where salespeople put their goals and are working toward in order to make their sales quota, increase their earnings and be able to keep their jobs for another month. Even the dealerships themselves often only consider their business a month at a time, but the new Cadillac Chief, Johan de Nysschen offers a look at what is to come for dealerships that are capable of seeing the bigger picture and a bit of relief in the future.
The vision de Nysschen has shared involves having a much lower on hand of inventory. This will help Cadillac dealerships by forcing them to sell what is already on their lots. The goal is to keep no more than sixty days of inventory on hand at any time and offer incentives and payments for dealerships that are able to sell this inventory and are ready to order more on a regular basis. For much of last year the on hand inventory at many dealerships was double this goal, which gives salespeople more to work with, but makes them a bit sluggish in their approach.
Some of the initial push back de Nysschen experienced from dealers was the lack of Escalade supplies and a high sticker price for the CTS. To respond to these issues de Nysschen boosted the SUV production and reduced the sticker price for the CTS to give dealers what they need to help them succeed. Along with these changes, he has seen the sluggish numbers and is considering several changes that will help dealers be able to meet their incentive goals instead of constantly having to product year over year increases. One of these changes is reducing the first-quarter requirements which will allow more dealers to qualify for the bonus they have missed out on with the lack of recent sales.
Another important change being considered is an improvement of the dealer-incentive programs offered which can give better new-vehicle margins to dealer who offer in house services. This allows customers to invest in the relationship they will have with the dealership and eventually help to improve customer brand and dealer loyalty when it’s time to buy the next Cadillac vehicle.
Regardless of how dealers live in their thirty day world, de Nysschen understands the need in the short term to help dealers become more efficient, successful and more competitive with each other for success. He also has a long term plan to bring Cadillac back to the forefront of the luxury car industry as not the highest price offerings or the lowest, but the line that offers the most services and best relationship with customers so they will return for their next vehicle. This plan looks great and offers a fantastic opportunity for dealer to experience some short term success on the way to the long term goals which will gain a huge following and loyalty from many dealerships.
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