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September '14

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rv-pro.com SEPTEMBER 2014 • RV PRO • 47 do at getting repeat customers? is is also very difficult to calculate, but you would certainly get a percentage of the 67 customers to buy again in the future. No calculation here. • Total amount lost per year: e total lost gross is $536,000 annually – and this doesn't count the last two items on the list. Is It Worth It? Now ask yourself, is it worth it to keep a salesman who sells two to three units per month? I know that there are dealer readers who have kept this type of employee for many, many years. Do the math. If you keep a mediocre or poor salesman for five years, it will cost you $2.68 million, and for 10 years, it will cost you $5.36 million. Let's say you don't like how I did the above calculations and you think I am full of it. Even if you divide my totals by half, you still get an enormous loss. Personally, I don't think anyone is worth this, and this is coming from someone who fired his wife (in a prior life and wife). For the above example, I have chosen salesmen, because it is the easiest position to quantify. However, all other positions in your dealership also will cost you – if you choose to keep poor performers. Now consider managers. If you have a manager who is one of these mediocre or poor performers, how much is he or she costing you? I suggest that a poor sales man- ager will cost you multiples of the amounts of gross that a poor salesman costs you. It seems so simple, but why do dealers or managers still hang onto these employees? I see that there are two main reasons: 1) It is a lot of work to find, hire, and train new salesmen, and 2) there is the fear that after you do all this work, you will be no better off — or even worse. en there are the justifications: 1) He's a good guy, 2) He tries hard, 3) He is good at other things, 4) What about his family? 5) Etc. If any of these reasons kept you from making personnel changes, then you have chosen to abstain from your most impor- tant role in the dealership. That is, the ability to choose who is on your team. It can be argued that, as a manager or dealer, this is your most important job. Can you imagine an NFL general manager not taking an interest who is on his team? As I have written in prior articles, a poor hire is a management error. ere are three paths you can choose for these poor per- formers. I use the acronym TTT for Train, Transfer or Terminate. If your employee has the intelligence and the skill set for the position, then you must give him the proper training for him to succeed. If he does not have the skill set for the position he was hired, it is pos- sible that once you get to know him, you will find that he is much better suited for another position. If he lacks the intelligence or skills sets to work in your dealership, you must terminate him. Most managers don't like doing this. However, I believe that you are making the employee's life miserable by accepting poor performance and allowing him to remain in a position for which he is not suited. If you have ever been in a position that, either you didn't like or weren't suited for, I am sure that you were very unhappy. In reality, you are doing the employee a favor by allowing him to find what he is really good at. I have read that 75 percent to 80 percent of all employees don't like their jobs, because they don't like what they are doing. I think a good portion of this is due to weak managers allowing them to stay in the wrong jobs and accepting poor performance. e good news is that there is a solu- tion. e bad news is that it is hard work. I am sure that you have noticed that certain organizations have consistent and

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