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Old 01-01-2018, 08:01 AM   #1
mryan55
Senior Member
 
Join Date: Mar 2013
Posts: 594
Default Open Floor vs. New/Used Sales Departments

Happy New Year, everyone!

i wanted to get a conversation started about opinions on having an open sales floor versus split new and used car departments. We are obviously all in somewhat different markets, and my entire career has been spent in the Midwest, so I'm just curious as to everyone else's experiences when it comes to this subject.

Until the last year I was with a pair of dealership groups that had open floors and in one case, even sales management staff that desked new and used car deals equally, both worked on used vehicle acquisition... the only thing that fell solely on my plate was ordering new vehicles. This actually worked out pretty well for us, but I imagine you have to have a strong pair of managers to not have dedicated new and used managers to make sure nobody feels butthurt at times.

Anyhow, my recent concerns are more focused on the sales staffs. I'm looking at a possible restructure of my used vehicle department going into 2018. The setup, as I inherited it in 2016 and have left with few exceptions is:

New Vehicle Department: 1 manager, 5 dedicated new sales. Average monthly volume of 55.

Used Vehicle Department: 1 manager, 2 dedicated used sales. Average monthly volume of 15.

Finance manager shared between the two departments since volume is still low -- and I will back up the finance manager as needed because of vacations, weekends, and such.

I have a sixth new car staffer starting this week. My thought is to consolidate down to an open floor -- possibly losing one of the current used car staff in the process. As I mentioned before I prefer the open floor. I think it gives a more unified experience for the customer, is easier to manage, and holds used vehicles to a higher standard. I think going to an open floor gives a good chance at increased volume on the used car side. As it stands now I worry that two veteran shortcutting used car staffers just walk customers and push around the manager we have in place.

Used car department current runs in a separate building on our property, but thinking of bringing everything down to the new car showroom since we have room for expansion and I am only stocking ~125 new at this point.

Any thoughts?
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