A Dealer in Distress

I received the below note from a dealer experiencing a very stressful Spring selling season, but probably not for the reason you think.

Note from dealer:

Hey Mr. Pollak, hope all is well and you are having a blast doing what you do.

Wanted to say hi and give you an update from your biggest supporters from Pinconning. Life is good for us as we keep plugging along, after 5 years of growth and records by applying the “Velocity philosophy” we rolled into 2018 hopeful but understood that these increases would not last. For us to maintain our 2017 sales level would be a big win for us. We kept analyzing and looking for ways to improve to keep pace with the ever-changing market.

2018 has been a struggle to say the least, we have run out of facility and man power! We have delivered 853 used cars in the first four months of 2018 by applying the Velocity philosophy, setting all-time records in both sales and net. I called Russell early this month and told him we need to back it down…can you believe that? I should also let you know we have sold 40 new Chevys which equates to 150% sales effective by Chevy standards.

We will keep struggling in Pinconning until we get this all figured out.  Thanks for all that you have done and continue to do.

Brad Gross, Schafer Chevrolet

My reply:

Hey pal, keep your chin up.  I’m so sorry to learn of your struggles operating a Chevy dealership and used car operation in Pinconning, Michigan, population of 1307. Retailing 853 used vehicles in 4 months, or an average of 213 per month is a marginal performance at best when you consider the potential addressable market of 300 million Americans.  You obviously have much more upside potential, and with just a little more effort and resources of human capital and facility you might claw your way to a respectable level of performance. Stay focused, keep your head down and pass my best regards on to Russell and Darlene. 

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