Friday, August 8, 2014

John Marazzi taught me something today...

About two years ago we began tracking front end PVR throughout our auto group. OK not revolutionary but I'm not talking salesperson PVR I'm talking from the desk. But for each action there is an equal and opposite reaction. The negative was that now desk managers would run from low margin deals, internet grosses or deals on age pre-owned inventory. What we wanted was a culture of accountability...what we got was desk managers becoming good at playing matador.

John Marazzi had a solution. Instead of letting his one desk manager who would take any action (be it a detriment to his per copy) become the department laughing stock he created a top ten gross report. The report would pit each desk managers top ten grosses against the rest of the team. What we found was that the playing field was leveled and that when gross was there the so called low PVR performer was hanging with the big boys.

BUT today my mind was further blown. In the ever changing marketplace of pre-owned vehicles prices don't just change daily they change hourly. Now how could you compare a manager selling a 70 day old unit with 400 dollars of profit to another selling a fresh unit with 1800 dollars of wiggle room to retail? The answer is you can't. John Marazzi has changed all that. In transactional selling John has realized success is relative to the opportunity you are given and what you do with it. His price to sale gap report takes all that into account and gives managers a true relative measurement of their dealing success. Simple but effective thinking. Well done John and Brandon Honda!

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