How Much Did GM Lose in Houston December Sales?

[HoustonPerson]

GM at the corporate level needs some serious “Level 5” Leadership.

GM is one company (unlike Ford or Dodge), that has fully capable engineers on tap, consistently improving product quality. It is sad those products can not be delivered to the customers, in large areas of the country.

GM dealers in the Houston area are significantly worse then Ford or Dodge. Conversely, there are a half dozen dealers in the DFW area, that consistently delivery acceptable levels of “customer satisfaction”.

Approximately 40% of the “Buyers” in Houston, with cash in hand, ready to make a purchase are turned away; due to the fact the entire customer experience is far less then satisfactory. Both the sales and service customer experience are substandard.

A 1,000 page manual could be written on “not what to do to a customer” – simple things like:

1. Respond instantly within the first “minute” of meeting the customer, when “programmed” sales tactics do not work. It is clear that the day and age of the professional salesman no longer exists.
2. Provide stellar customer service – honor warrantees.

One of the nation’s largest Toyota dealers is right here in Houston. That dealership has both excellent sales and service experience for the customer. That dealership is surrounded by 6 GM dealers – all 100% failing at delivering the same level of customer satisfaction. This is not a good sign for GM since they are not capable of the same level of customer satisfaction.

GM if you want to compete against Toyota, the dealership issues have got to be addressed. There is no reason to leave that money on the table – your number one “stakeholders” (the customers) want and deserve a lot better or they will take their business elsewhere.

[2007CTS]

I have been to several dealerships in Houston and none have been that great. Some of them are horrible. One GMC dealer in particular is really bad and have gone in there several times and ended up in arguments with either a sales manager or service manager. I definatly think GM needs to look at their dealers a little closer. I told GMC customer service about the particular dealer and they didnt really care. Im sure GM loses a lot of sales that they could make due to there dealers. I would love to go on with my full rant about dealers in Houston but Im not going to.

[BusyBody]

Well there are a fair number of complaints. Definately GM needs to clean this up. I suggest you go to the GM blog site and post this. If enough people do, perhaps the powers that be will begin to listen...

[MCGARRETT]

Approximately 40% of the “Buyers” in Houston, with cash in hand, ready to make a purchase are turned away; due to the fact the entire customer experience is far less then satisfactory. Both the sales and service customer experience are substandard.

A 1,000 page manual could be written on “not what to do to a customer” – simple things like:

1. Respond instantly within the first “minute” of meeting the customer, when “programmed” sales tactics do not work. It is clear that the day and age of the professional salesman no longer exists.
2. Provide stellar customer service – honor warrantees

Could you perhaps expand this a little more and provide some examples?

[likearock00]

I'm gonna keep away from this potential powderkeg.

[pontiacjs]

What research have you done to support your claim? Are you implying that every person that goes in to a Toyota store in the Houston area is 100% completley satisfied or are you just an angry litle Texan with an axe to grind with GM.

I can not stand it when people use blanket statements that all GM dealers are worse than pond scum and all Toyota dealers walk on water.

[HoosierRon]

Originally Posted by pontiacjs

I can not stand it when people use blanket statements that all GM dealers are worse than pond scum and all Toyota dealers walk on water.

I think what he said was:

"Conversely, there are a half dozen dealers in the DFW area, that consistently delivery acceptable levels of “customer satisfaction”."

and

"GM is one company (unlike Ford or Dodge), that has fully capable engineers on tap, consistently improving product quality."

That does not sound like a grinding axe, nor does it sound like he is saying "that all GM dealers are worse than pond scum".

[GMCSonoma]

A Houston area Cadillac dealer was hiring a parts manager...so I guess I should pass them up then???

[HoustonPerson]

Originally Posted by MCGARRETT

Could you perhaps expand this a little more and provide some examples?

McGarrett, I will try to give some examples (space does not allow for the 1,000 page “not to do book” for car dealers – but it is, after all common sense).

1. The “wealthier” demographic class customer will not respond to “programmed”, “scripted”, or “rout” sales tactics. This is the number one reason GM’s sales are faltering in our area. From downtown Houston to Conroe to Katy, GM has lost millions in sales because GM dealers in this area use exclusively “programmed sales tactics”
2. Failing to honor warrantees. It is bad enough for a dealer to not provide customer service to its “own” customers, whether “in” our “out” of warranty. But GM dealers in this area “routinely” fail to provide service to GM customers even if they purchased the vehicle someplace else. The loss of “conquest” sales to potential customers that live in their specific area is testimony enough to the local GM’s dealers failing in this area. There is not a single valid reason that I know of that customers should be routinely “turned away” for service. It comes back to the “demographics” of your customer. If a customer “knows” that service will be substandard will he buy from that dealer?

Conversely, I mentioned before there are at least a half dozen dealers in the DFW area that this not a problem. Those two problems above will not happen at the James Wood Dealership (Denton – north Dallas - all GM products) or Sewel Dealership (Dallas - most GM products and Lexus). Each of those dealerships has “excellent” conquest sales because of their excellent service. Sales transactions at those two dealerships are handled in the most expeditious and professional manner. When you drive your car or truck in for service, the red carpet is rolled out “every time” to “every customer”, and service is always first class, professional, and fast; it does not matter where you bought your car or truck.

Back to demographics; The Woodlands Texas, is one of the largest and wealthiest areas in the state. GM’s new Malibu, Cadillac CTS, Corvette, and the 1500/2500/3500 pickups would sell faster than GM could make them if a James Wood or a Sewell type dealership were there. They know how to do it. The current 15 GM dealers surrounding The Woodlands are not able to provide that level of customer support. Those GM’s dealers are failing to address 40-50% of the demographics in their specific local market area; hence the loss in sales.

If either a James Wood or Sewell type dealership were in The Woodlands “today” (with the full support structure of course), 100% of GM’s excess 1500/2500/3500 inventory for Houston (Harris and surrounding counties) would be cleared out within 30 days. The demand is that great; but “buyers” (for this level of demographics) will not “buy” if the support structure is not there.

It is time for GM to demonstrate some “Level 5” leadership and make this a top priority for its number one stakeholder.

[CobaltSScrazy]

Originally Posted by HoustonPerson

McGarrett, I will try to give some examples (space does not allow for the 1,000 page “not to do book” for car dealers – but it is, after all common sense).

1. The “wealthier” demographic class customer will not respond to “programmed”, “scripted”, or “rout” sales tactics. This is the number one reason GM’s sales are faltering in our area. From downtown Houston to Conroe to Katy, GM has lost millions in sales because GM dealers in this area use exclusively “programmed sales tactics”
2. Failing to honor warrantees. It is bad enough for a dealer to not provide customer service to its “own” customers, whether “in” our “out” of warranty. But GM dealers in this area “routinely” fail to provide service to GM customers even if they purchased the vehicle someplace else. The loss of “conquest” sales to potential customers that live in their specific area is testimony enough to the local GM’s dealers failing in this area. There is not a single valid reason that I know of that customers should be routinely “turned away” for service. It comes back to the “demographics” of your customer. If a customer “knows” that service will be substandard will he buy from that dealer?

Conversely, I mentioned before there are at least a half dozen dealers in the DFW area that this not a problem. Those two problems above will not happen at the James Wood Dealership (Denton – north Dallas - all GM products) or Sewel Dealership (Dallas - most GM products and Lexus). Each of those dealerships has “excellent” conquest sales because of their excellent service. Sales transactions at those two dealerships are handled in the most expeditious and professional manner. When you drive your car or truck in for service, the red carpet is rolled out “every time” to “every customer”, and service is always first class, professional, and fast; it does not matter where you bought your car or truck.

Back to demographics; The Woodlands Texas, is one of the largest and wealthiest areas in the state. GM’s new Malibu, Cadillac CTS, Corvette, and the 1500/2500/3500 pickups would sell faster than GM could make them if a James Wood or a Sewell type dealership were there. They know how to do it. The current 15 GM dealers surrounding The Woodlands are not able to provide that level of customer support. Those GM’s dealers are failing to address 40-50% of the demographics in their specific local market area; hence the loss in sales.

If either a James Wood or Sewell type dealership were in The Woodlands “today” (with the full support structure of course), 100% of GM’s excess 1500/2500/3500 inventory for Houston (Harris and surrounding counties) would be cleared out within 30 days. The demand is that great; but “buyers” (for this level of demographics) will not “buy” if the support structure is not there.

It is time for GM to demonstrate some “Level 5” leadership and make this a top priority for its number one stakeholder.

That occurs at the ONLY Chevrolet dealership in Lake Orion/Oakland Township, MI. Its not just a Houston problem.

CobaltSScrazy

[MCGARRETT]

The “wealthier” demographic class customer will not respond to “programmed”, “scripted”, or “rout” sales tactics. This is the number one reason GM’s sales are faltering in our area. From downtown Houston to Conroe to Katy, GM has lost millions in sales because GM dealers in this area use exclusively “programmed sales tactics”
2. Failing to honor warrantees. It is bad enough for a dealer to not provide customer service to its “own” customers, whether “in” our “out” of warranty. But GM dealers in this area “routinely” fail to provide service to GM customers even if they purchased the vehicle someplace else. The loss of “conquest” sales to potential customers that live in their specific area is testimony enough to the local GM’s dealers failing in this area. There is not a single valid reason that I know of that customers should be routinely “turned away” for service. It comes back to the “demographics” of your customer. If a customer “knows” that service will be substandard will he buy from that dealer?

These are still not really examples, i.e a story that would prove your point. You just cant say, "programmed sales tactics", I sold cars for 6 years and sold both the bottom of the barrel credit criminals and millionaires and I essentially used the same sales method through my entire career in autosales, what were the salesmen supposed to use? Interpretive Dance? So I am going to need a little more explanation than what you are providing.

[pontiacjs]

Where do you get your info from? Are the two dealers you like gaining market share? Are their CSI scores higher than the other dealers? Do they spend more in advertising than their competition? Are they profitable? Have you seen the cross sell report (how many cars and trucks they sold outside of their market vs. the other dealers selling their customer base? It sounds like you did a tremendous amount of research. What are you basing your statements on? Is it your opinion or do you have some credible facts.

Have you ever owned a dealership? Have you ever worked at a dealer in some form of management? Do you really think if every dealer did as good of a job as they do at Sewell that there would be no trucks left to sell in your neck of the woods?

I do agree with you that there is always room to improve and some dealers are better than others. I find it hard to believe that a dealer would refuse to work on someone’s car because it was purchased from another dealer. Is this their policy or did they throw out a customer who was rude or belligerent? Do they only service the cars and trucks they sell?

Please ignore my spelling and grammar as I am just an old car guy that never went to college.

[HoustonPerson]

Originally Posted by MCGARRETT

These are still not really examples, i.e a story that would prove your point. You just cant say, "programmed sales tactics", I sold cars for 6 years and sold both the bottom of the barrel credit criminals and millionaires and I essentially used the same sales method through my entire career in autosales, what were the salesmen supposed to use? Interpretive Dance? So I am going to need a little more explanation than what you are providing.

Every “professional” salesman I know, already knows what “programmed” sales are, it is the “norm” in the industry and unfortunately most “sales” today are done that way. Real professional salesman would not use “programmed sales”.

Here is a very elementary example: The customer, before he arrives at the dealership is ready to “buy”, he already knows what he wants, he already knows about its availability, he already knows the price; it should be easy for a professional salesman to understand that within 60 seconds.

The conversations start like this.

Salesman: “Hello, are you ready to buy today?” (no introductions, no confirmation of what the customer wants)

Customer: Already puzzled by such a stupid and lame question, the customer could respond in virtually unlimited number of ways. In this example he says: “yes I will buy today, but only if you have want I want at the price I am willing to pay.”

Salesman: “We have what you want”……… “our price is better then anyone’s” (how does the salesman know what the customer wants, he never asked and the statement about price is more hot air).

So far the Salesman has done nothing but turn the customer “off” to that dealership. The only thing worse is when the sales manager and the general manager get involved in this lengthy and drawn out sales charade (the “program”).

Let’s say an hour is spent playing the “program”. Finally the customer (with absolutely no help at all from the salesman or the selling forces at the dealership), gets it across to the salesman he wants product ZOOM Plus with options A,B,C,D. But the dealership will only stock ZOOM basic with option A,B,Z (Z is a $5,000 option the customer does not want and will not pay for). The customer requires all of options A,B,C,D. The short story is: Neither the salesman, nor the dealership make any effort to address the requirements of the customer; this after all the wasted resources. Will the customer “buy” from this dealership? Only if he is an idiot.

So even though the customer did not “buy” the ZOOM Plus; that dealership has another stain on its track record in the community. That one lost sale cost them ten more.

Because of the actions of the “salesman” the potential customer is already turned “off” by the service department, whether he has been there before or not.

Of course there is also, the whole issue of “service” that I mentioned above. Virtually, “none” of the 15 dealers surrounding The Woodlands, Texas have a clue about the 100% “linkage” between sales and service.

[pontiacjs]

I am guessing that after spending 1 minute with you that the salesman is wishing he had the balls to just walk away and leave you in the middle of the showroom. I have read your previous post and you seem to be a demanding know it all with a bad attitude. I work at the #1 dealer for csi in the country and have a 100% completley satisfied rank. I would bail on you in a new york minute. You would not be worth the commision.

Was the Truck you want to order something no one else in the country would want but you? What did you want or not want on this truck that made it unusual? Did they ask for a large non refundable deposit to order this odd truck?

Have you asked for the dealership that is a couple of hundred miles away to order this for you and have it drop shipped at the local dealer? Do the local dealers have a diesel tech on staff or are they just small dealers with limmited resources?

[HoustonPerson]

Originally Posted by pontiacjs

Where do you get your info from? Are the two dealers you like gaining market share? Are their CSI scores higher than the other dealers? Do they spend more in advertising than their competition? Are they profitable? Have you seen the cross sell report (how many cars and trucks they sold outside of their market vs. the other dealers selling their customer base? It sounds like you did a tremendous amount of research. What are you basing your statements on? Is it your opinion or do you have some credible facts.

Have you ever owned a dealership? Have you ever worked at a dealer in some form of management? Do you really think if every dealer did as good of a job as they do at Sewell that there would be no trucks left to sell in your neck of the woods?

I do agree with you that there is always room to improve and some dealers are better than others. I find it hard to believe that a dealer would refuse to work on someone’s car because it was purchased from another dealer. Is this their policy or did they throw out a customer who was rude or belligerent? Do they only service the cars and trucks they sell?

Please ignore my spelling and grammar as I am just an old car guy that never went to college.

My spelling and grammar are much worser than yours. I am many times older too. No I have not worked in or owned a dealership.

But I am smart enough to know that a dealership like the two I mentioned could sell GM’s entire Houston surplus within 30 days.

GM has to be smart enough to "know" what it is that the sales reports are not telling them and what the customers are not telling them in customer surveys (which are seldom accurate). That is one key element to become a success and a leader among your peers – knowing what your customers are not telling you.

What is it, that GM does not know, that the reports do not tell them? Drive through the Woodlands and you will see. There are a lot of GM cars and trucks there that were purchased in other market areas……….but what it is not telling you is how many did not “buy” because 260 miles is too far away, or the local dealers are of such “low quality” they would not buy the product. Conversely, there are 2 Toyota, 1 Lexus, 2 Honda, 1 Acura, 1 BMW, 1 Mercedes dealer serving The Woodlands area. I would guess that those dealers cover about 60% of the car sales in this area, with possibly the Lexus dealer with one of the highest percentages. That small number of dealerships is up against 15 GM, 15 Ford, 5 Chrysler.

This all goes back to my first question: GM has absolutely no idea the amount of lost sales in the Houston and surrounding area; because of substandard dealerships. As far as I know that figure is not reported. It is what GM does not know, that is killing them.

(I will be gone for about 2 weeks, so no more posting from me)