I wonder just how many businesses are currently operating under the misapprehension that their sales strategy is the same as their greater business strategy. You could take that one step further and assess of those sales strategies, how many were engineered solely with CPIX and revenue growth requirements in mind only. This is a classic mistake of many established businesses – we take last years’ performance (financial) and add 10% without really investigating what the true market opportunity is, or what our competitive advantage is, or indeed are we on track towards our vision? It’s clear: Your sales plan ≠ your business strategy.
This is our first Quazar Automotive Case Study – we’ll be sharing more throughout the year. The Brief In 2012, after discussions with the Franchise Executive of a leading automotive company, we embarked on a programme to find the opportunities that existed in the Service Department. The brand has 9 dealerships in South Africa and 1 in Botswana. The brief was to increase the profitability of the Service Department and relieve some of the pressure on the existing staff. Previous research revealed that there was potentially about R1.5m additional profit to be taken from the Service Department, with no additional personnel or
Automotive dealerships wanting to make a real and sustainable change to their business and profit need to start with the basics. For Dealer Principals, that means looking at themselves first. Paul’s Top Tips for DP’s Question everything Keep asking “Why”. Why do we do this in a particular way? What is the benefit? What if we tried something different? What are the issues holding us back from making these changes? Very often, it’s simply because “That’s the way we’ve always done it” The right people in the right place Help your team members to find their niche. Every person in the
Paul Cape heads up Quazar’s Human Capital team, leading the way in mentoring and coaching our clients, and is the brains behind our automotive work. Paul’s love of all things fast and noisy started in childhood. Living in Germany, with a father in the air force, he was exposed to speed and German engineering from a young age. After university an ad caught his eye for Porsche salespeople, and he was swayed by the idea of a Porsche company car! The energy to overcome challenges The bug bit – “The industry is addictive”, he says. Having worked with premium brands
Since 2008, the new car market in South Africa has been experiencing declining sales in passenger cars and light commercial vehicles. New entrants into the market have also eroded market share for the established manufacturers. Research into automotive aftersales at the time revealed that on average, R1.9m of profit was ‘lost’ in the Service Department alone. Quazar began looking at ways to improve sales and profitability in both Used Cars and Aftersales. In 2012, we identified a small sample of dealerships from a leading automotive brand, and implemented a 7-month programme designed to provide each dealership with their own strategy and implementation plan, reflecting their unique market, resources and capabilities. 53% increase in service nett profitability A year into the
Celebrating Youth Day doesn’t mean much unless we actually start listening to what young people are telling us. I had a chat with Zuko Mhlakaza-Mnukwa, a 24 year old youth leader in Driftsands who has been working for a number of years to create change in his community. With no funding or outside help, Zuko leads a grassroots youth organisation called Driftsands Youth In Action. He has mobilised his peers in creating youth events, celebrating the women of his community and showing young people how to be leaders in their own lives. He’s led the way in combating homophobia and attending
We honour the sacrifices made by the youth of 1976. The energy and urgency of youth is almost always the impetus that creates great change. Look at our changing world, see who is out there on the front lines, pushing for better – for different. Today, more than ever, young people are fighting their way out of the neatly labelled boxes the world wants to put them in. They don’t want to be talked at or sold to. They want the chance to be their authentic selves, to have their experiences reflected and valued in the world. To feel heard and understood.
In the Cape Times this morning, Roy Cokayne’s report on another double digit decline in New Car sales brings home the opportunity that exists in Used Cars and After Sales. We really don’t want to panic about recession due to just one element of Franchised Dealer profitability, but rather see where the opportunity exists. There is still an appetite for consumers to change their cars and whilst they may not be buying new, they are buying used, and in some cases nearly new. A few years ago, 72-month finance was introduced by the finance companies, as a way to keep their