Sales & Marketing
Is Your Dealership Ready For A Business Development Center? -REVISITED
By Forrest Scott
My September 2000 article, "Is your dealership ready for a BDC?" seems to have sparked more attention than I could ever have imagined. When I passed the 100 dealer response mark, I knew I had touched a very sensitive nerve. More importantly, I was extremely pleased with the fact that so many dealers and managers were willing to face the fact that their dealerships may need certain areas attended to before installing a BDC. On the other hand, there were some consultants who stated that the article interfered with their ability to close a few BDC start-ups. To that I have no apologies. The fact of the matter is a dealership must be completely ready and committed to the installation of a BDC or the BDC will fail.
As a result of the rather large number of inquiries I received, I have decided to elaborate a bit more on this subject and share a few of the questions I have received, as well as the answers I gave.
One of the more interesting issues/conversations I encountered was with non-dealers. It was in relation to my belief that a dealership should have its house completely in order prior to installing a BDC. Additionally, it is my belief that a consultant should analyze a dealership prior to installation, and be prepared and willing to tell a dealer certain details within the dealership need to be completed before a BDC should be installed. I do realize telling a dealer that their dealership needs certain areas improved before a you can proceed may not be the most popular thing to do, and a consultant may even lose a sale. However, I have learned through consulting with dealers that while they may not always like what they hear, they certainly appreciate the truth.
Question 1: I have spoken with a company that feels they could come to my dealership and install a full BDC without the extra expense of visiting my dealership and performing a review. Since they state they have a BDC package all laid out, do you think I would be wise in saving the expense of having them do a review?
Answer: While it is possible for what I call a "cookie cutter" approach to work, it would not be an option I would take. The company you are speaking with may be very qualified and may do a great job. On the other hand, they may not. Having not had the benefit of performing a complete review of your dealership, you may be the person they turn to should the BDC fail or have difficulty. After all, it's difficult to truly describe your dealership and the people you have working for you completely on the phone.
Question 2: We do not have much of a showroom traffic control system in place. We would like to start a new and real program for this at the same time we install a BDC, what do you think?
Answer: It is possible to do this. However, I would rather see you install a proper showroom traffic control system prior to the installation of a BDC. The installation of a proper showroom traffic control system is usually a challenge in and of itself. Salespeople, and in many cases, sales managers, fight this type of control and accountability. Additionally, it is typical for the installation of a true, showroom traffic control system to highlight a host of areas in need of improvement. Another reason for installing the showroom traffic control system first is to have data to compare with your new BDC. It is amazing to me to see how many dealerships tolerate poor showroom traffic control. I assure you, if you cannot get your management to enforce a reasonable showroom traffic control system, you will never be satisfied with the results from your BDC. As much as I believe in the benefits of a BDC, I would not recommend installing one in your dealership at this time.
Question 3a: Is it better to have a consultant do the review of our dealership? We have a strong management team and I think we could do it ourselves.
Question 3b: I have picked the person I want to manage our BDC. Is there a reason why this person shouldn't do the dealership review?
Answer: I have put these questions together because they are so closely related. It is definitely possible to perform the review internally. However, please note I used the word "possible". The reason I am so cautious is that many times it is difficult to get truly honest answers to the necessary questions when one manager asks another. Additionally, since your management team may have little or no familiarity with the BDC concept, they may be at a loss when it comes to deciphering the information they receive. Regarding the question from the dealership that has selected a person to manage the BDC... typically, this person, being new to the dealership or the position, finds it difficult to ask many of the necessary questions. He or she often may be intimidated by some of the more seasoned managers. If after reading this you still want to do the review internally, I suggest having a senior member of management be involved in the actual review, preferably the general manager or the dealer. Remember, you are not looking to hear how things should be, you need to know exactly how things are. Only then can you decide what, if any, changes are necessary. Performing the review internally is certainly possible and typically quite enlightening.
If you have not requested a complimentary copy of the 20-page questions/profile we have prepared and would like a copy, please feel free to contact me through the magazine as directed below and I will be happy to send it to you
Forrest Scott is president of Dynamic Marketing Strategies Inc. fscott@dealeronline.com
