“Ya gotta structure this just like a car deal.”

It is impossible to maximize the gross profit on a car deal unless the “structure” of the deal is sound—right?

The same holds true for maximizing your success participating in tent sales. Unless the numbers, or “the structure” is sound—you’ll leave money on the table and in the tent. Maybe even handing it to your competition.

Let’s discuss the important “numbers” and how they relate to “structure”—maximizing your success and profitability during these off-site events (Tent Sales).
Inventory and salespeople

For years, dealerships looked once at their inventory and aging reports to determine how many vehicles they would display at off-site sales. After all, the old saying “the more you have, the more you’ll sell” holds true—right? Not necessarily.

After producing over 500 events, we have discovered that the number of salespeople is as important—even more important—. than the number of vehicles displayed. Really!

Here’s the structure you’re looking for—one salesperson for every eight vehicles on display. This 1 to 8 ratio seems to be the perfect balance of satisfactory salesperson coverage.

Keep this 1 to 8 structure and you’ll sell 35 percent to 45 percent of your displayed inventory (depending on the length of the event and time of year)—maybe more.

Write ups or test drives-where should our focus (and thus “spiffs”) be? Quite frankly, putting the focus on write-ups at a tent sale is as outdated as dial up computer lines.

You’ve seen it before- a write-up comes to the desk—we dive into the deal with one, two, maybe three pencils and we learn the customer has not even driven the vehicle. How stupid is this?

Or worse yet, your salesperson grabbed an up and sat them down to do a credit application without even putting them in a car. These “pros” can’t waste their time with someone with poor credit so they work every customer like they are a “special finance” deal.

Wake up and smell the coffee, people! I cannot tell you the number of under 500 Beacon customers who somehow find a qualifying down payment, co-signer, or even someone else to buy them the vehicle if they have an emotional attachment to the vehicle.

This can only happen with a nice, long test drive.

It’s all about the test drive. If I were on the desk, I would not even accept a write up—.or even a credit application without a test drive at an off-site sale.

Here’s the structure: about 37 percent of all test drives will result in deals during off-site sales. That’s better than one in three.

It doesn’t seem to matter if these three demos are with different customers or three demos (on different vehicles) with the same customers. If your troops gain enough control to go on at least three test drives (complete with a professional features and benefits presentation) there is going to be a car deal.

This is due to many factors, most of which we’ll cover in a future article. In the meantime—focus on the demo-not just the write up!

More on staffing

We have already covered the 1 to 8 ratio of salespeople to vehicles displayed, and that this will equate to approximately a 35 percent-45 percent inventory turn (assuming you have a nice mix of vehicles on display with an average ACV of below $15,000-$17,000)- but there is more to the staffing structure.

Roughly 50 percent of all deals made at an off-site (tent) sale will be delivered after 5pm. In fact, on Friday and Saturday, take your number of units sold at 5pm. Double that number and this is very close to where you’ll end the evening.

Deliver 15 vehicles by 5pm and expect to sell 30 for the day. Really! In contrast, sell two before 5pm and you might only do four or five for the day.

Therefore, having 100 percent of your staff working bell to bell does not make much sense—does it?

Consider this: For the first half of the day (until 3 or 4pm) why not staff with one salesperson for every ten to twelve vehicles on display? After 4pm, call in the reinforcements from the dealership and staff your display with one salesperson for every six to eight vehicles on display.

Here’s a staffing chart you might find useful.

9am-1pm One salesperson for every 12 vehicles on display

1pm-4pm One salesperson for every 8 vehicles on display

4pm-8pm One salesperson for every 6 vehicles on display

8pm-mid. One salesperson for every 10 vehicles on display

Furthermore, get your salespeople out of the element every couple of hours. Have them go somewhere to get something to eat or drink. Send them to the dealership with a trade. Help them get their mind and body away from the venue for a few minutes.

A short break every couple of hours will enhance the performance of every salesperson.

With this staffing structure and break structure, expect your salespeople to average 2.7 to 3.6 units sold per event. Call it slightly better than three units sold each.

Ten salespeople will combine to sell 32-34 units, if they are working in an 80-unit display.

It’s all about the structure.

He who stays late wins.

Here is a really interesting stat for you to ponder…

Almost always, the dealership posting the last deal of the night also posts two of the last three (or four) deals and three of the last five (or six) deals of the day. Get the last deal every day and you’ll be very happy at the conclusion of the event.

So, there you have it, the magic formula- the structure of a successful tent sale.

Good luck and good selling.

Mike Conley, of Conley and Associates can be reached at 1-800-643-8582 or at Mike@conleyauto.com.