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The Automotive Software Dec 24th, 2020 Article
5 Reasons You Need To Cancel Your Split Deal Policies This Year...
And Why...
By Philip Cheatham Dec 24th, 2020
- Split Deals are an unfair headache and total waste of time placed onto your management: Before you think I'm being some type of meanie here by not only taking this stance, but cementing it forever, as to promise that I will move to the top of Mt. Everest if I ever say anything different than what I'm about to lay out for you on this topic: I have one question for you and that is: Have you ever worked inside a dealership that completely banned any type of deal splitting? If you haven't, please read on. These dealerships exist, but it isn't the norm. It should be. The first reason is because of the time taken away from your management staff when they are pulled into the black hole of "I should get half that deal." I won't even go into it in this point, but there is also the time spent off market by your salespeople involved in this black hole. A whole other issue I'll address in the Not Splitting Makes You Tougher Point below. Just the time your management team spends caught up in these totally unnecessary messes is costing you deals, efficiency etc etc. Its causing a lot of drama too. Its also a totally useless skillset to develop. Its like learning how to put out fires you start yourself on purpose. Lets just not start these fires. Ok, Phil, so how does your perfect process work? I'll tell you. Whats cool about this one is you can do it in a sermon running a meeting, totally rogue by yourself as a Sales Manager in stores that even split deals. I did that for over a year at the desk in a store that split deals. I avoided all the drama and never got involved. I told my guys that if you can't figure it out, I'll take the whole deal. I'll house it. I don't care. There isn't much I get this strict about. I'm usually spending my time trying to make people better. Time arguing over split deals is a total waste. I will get into why it also makes people cheat, lazy and weak below. To implement this in your store is so simple. WHOEVER CLOSES IT, GETS IT! Yikes Phil! Thats a strict policy. Guess what? Its a drama-less policy and wait til you read about how split deals are the root of a lot of your problems below and how these problems will be solved automatically with a NO SPLIT DEAL POLICY. Imagine the dream you live in when a salesperson comes to you and says "I need half the deal" and you say "who closed it?" Getting further into this: I seriously don't care if its your aunt or uncle or you worked with them everyday since you started working here 350 years ago. Honestly, thats even worse. How the hell are you going to let another salesperson close any of those people and you couldn't?
- Split Deals encourage laziness: This is happening in your store: Customer walks up to your guy greeting: "Is Charles here?" "Umm no its his day off, I can help you." Salesperson literally says to another salesperson: "Man, I don't even want to do this, I'm going to do all the work and Charles is going to take half this deal like always." This is being said before you finish this article, probably this point, or sentence inside a dealership somewhere. This is 100% because the foundational idea and principle of splitting deals is weak. Think about it. This guy has a bad attitude, sure, but is he somewhat or even fully justified? I have seen salespeople who up a ton of customers at luxury stores and do this on purpose. Knowing the customers will come back, avoid them and then they'll scoop in doing no delivery etc and take half the deal. On the other hand, if you don't have split deals, this salesperson will get excited. Another sales guy already did some of the work, and guess what though, to get the deal, this salesperson has to close them! And right now! If it wasn't so sad and crazy it would almost be comical that you are allowing this inside of your multimillion dollar dealership. Sorry, just keeping it real.
- Split Deals encourage cheating: I laid out one way of cheating above but it gets a lot worse. Split deal policies create openings for a cesspool of fraud. Again, whoever closes it gets it, makes it simple. Cut throat? Not really, I'll get into that more too below. Split deals allow people to invent reasons they should literally take half of another salespersons full deal. We've all seen what I'm talking about. Your management can be in on it, why even create the temptation? We've already discussed how they incentivize laziness instead of its opposite which is to make sure you close this now and today or it could go back to the other guy. We also talked about the time wasted and the drama started. Now we have shown how split deal policies encourage and create the temptation for cheating. We still have one more point before the final one!
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Not splitting makes you tougher: Not only must I close my deals to make sure I get them, I must make sure I have control of my customers! Wow! Yes, not splitting deals forces your salespeople to get tougher! They will be much more serious about making sure their customers know their days off and that they work on commission lol but also with that, much more serious about following up! Also much more serious about getting strong at closing, and closing quickly. If anything happens, they know the rules, they can't get that mad. Next time have better customer control! Really think about transferring this responsibility where it belongs, to your salespeople and what that means for their newfound responsibilities and forced skills that are the same skills you want them to have at their sharpest.
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Not splitting makes everything more fair and encourages closers and closes today, not tomorrow: I spoke a little about this above in the last point. This is the finale of points to drive home. It boils down to what type of culture you are trying to create. Do you give your kids split grades? I don't even know of an analogy. One kid pulls the car out to wash it and the other actually washes it and you pay them the same? Its not fair, its not right and more importantly it breeds a weak culture. It encourages weakness instead of strength. Your salespeople no matter what they say upfront will thank you later, just like the kid you didn't pay that tried to scam their sibling. Please knock these weak policies off and implement a no split deal policy tomorrow! Tell them to leave their circus lemonade at home and learn to close and have customer control. A sidetone: what comes around, goes around too, everything I spoke about above is true and you will see the results if you implement a no split deal policy. Also though, not only is this system impossible to game vs. the split deal system always being gamed but your guys will all lose some and gain some this way. Also closing them faster and becoming closers to begin with at all and faster too!
Listen to Philip & his Co~Hosts discuss this in more detail on...
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