Automotive Management Training: Profitability and The Pathway Out of the Rabbit Hole

Down Into The Rabbit HoleIs Your Dealership Suffering from The Rabbit Hole Effect?

There are many reasons why dealerships often miss their forecast goals and show a loss of profit in financial statements. One reason is the “Rabbit Hole” effect.

Remember the popular children’s story “Alice in Wonderland”? The principal character in this plot is Alice, who falls down a rabbit hole and becomes lost. Alice then meets a curious cat who seemingly wants to help Alice find her way. Alice asks the cat, “Which way should I go?” The cat replies, “That depends on where you are going.”

Often dealership management find themselves in Alice’s shoes, trying to figure which pathway leads to improved customer satisfaction and greater profits margins. Today, I present to you the road map out of the “Rabbit Hole”.

Create goals that are just out of reach: Look at your current performance. Decided where you  would like to be next month, next quarter, next year and in the next five years. Create goals for each of your time lines that is just beyond what you believe is possible in that time frame. Remember, if you shoot for the stars, you may just land on the moon.

Ask productive and constructive questions: Productive and construction questions usually begin with “How”. By asking “How”, you are helping to define your goals and eliminate the reasons and excuses that often get in the way of achieving goals. For example, here are a few “How” questions to start with: How can we improve our CSI scores? How can we increase our profit by $200,000 annually?

Build “Team” by being in action and involving others: Often the answers to productive and constructive questions beg for another round of “How” questions. The answer to “How can we increase our profit by $200,000 annually?” might be “Doubling the number of units sold over last year.” This answer then leads to another “How” question…” How do we sell twice as many units?” This is where building “Team” becomes important. You can create buy-in for your goals when you involve your staff in coming up with the ideas and answers to this follow up set of “How” questions. Providing a say and stake in the game creates forward momentum.

The Manus Group Stephanie YoungAbout the Author

Stephanie Young is the Vice President of Sales and Marketing for The Manus Group, where she is an active blogger, social media contributor and spokesperson for one of the nation’s leading automotive recruiting and training firms. In here spare time, Stephanie mentors and encourages  young woman to pursue their interests in STEM field careers and is the driving force in her “Share the Love…Be a Volunteer” program.

If you like this blog, please share with others and connect with Stephanie on Facebook and LinkedIn.

Copyright © 2017, Stephanie Young All rights reserved.

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