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Welcome to NCM's Up to Speed Blog

Setting Realistic Sales Goals

Written By: Tom Hopkins
Posted on February 10, 2015

Achieving sales volume goals is one of the biggest challenges any automotive salesperson faces. This is a pretty straight forward industry. If you’re not making the cut, you can quickly find yourself let go from the team.

There are so many factors that can affect that final number, that you have to stay on top of every aspect of your sales activity and keep making contacts.

Hopefully, you are dedicated, professional, and motivated to achieve your auto sales career goals. If you are not, read no further. Instead, start looking for another product to market, something that lights a fire in your belly, something you truly believe in.

If you aren’t truly excited about the product you are offering, it will show in your demeanor or in some little thing you say or do while with potential clients. They’ll sense it, and little doubts and fears will arise in them about purchasing your vehicle. So, first and foremost, in order to achieve anything in this business, you have to believe in your line of vehicles, in the company you represent, and in your own ability to excite others about them.

Let’s assume for now, though, that you do have the knowledge, the belief and the right attitude in place. How do you set and achieve sales goals? Start by setting a yearly financial goal for yourself. Break it down into quarters and months. Is the monthly goal realistic? If not, you either need to downsize your goal or super-size your skills.

Next, consider the average amount you earn on a typical automobile sale. Divide that by your monthly earning goal to see how many vehicles you need to move this month. Consider your gut reaction and first thoughts when you see that number. Is it one of “Hey, I can do that”? Or, is it, “Wow! How am I going to do THAT?”

If it seems easy, consider increasing your sales goal. If it seems like it will be a challenge, good. Your goal should be something that both excites you AND makes you stretch a bit each month.

When you’re in stretch-mode:

  • You’ll be open to learning new ways of connecting with people.
  • You’ll look forward to making follow up calls and contacting those who are referred to you.
  • You’ll get out of bed in the morning with excitement to face the day and accomplish something positive.

This next step in achieving your goals is critical: Multiply your sales ratio by the number of vehicles determined above to learn how many people you need to connect with this month. Do you typically sell every fourth client you meet at your dealership? If so, your ratio is 1:4. If you need to get people happily involved in 10 vehicles to achieve your earnings goal, you’ll need to meet 40 of them in order to do so. That’s when you’re working with the law of averages.

Is it realistic for you to meet 40 people this month? If not, again, you either downsize your goals or learn new and better ways to meet people, put them at ease, and get them to like you, trust you, and listen to you.

That’s the bottom line of what selling is all about. People buy from people they like.

  • If you’re not like-able, you’re out of luck.
  • If you’re not knowledgeable, they won’t trust you.
  • If you want people to listen to you and take your advice about vehicle ownership, you have to learn to listen to them.
  • If you ask questions and get them talking, they’ll tell you exactly what they want to own … not just the make and model of the vehicle, but the features, the economy, the cool color, whatever it is that will make them say, “Yes, that’s the car for me.”

So, in getting back to these 40 people you need to meet this month, where are you going to connect with them? Hopefully, you’re not one of those salespeople who waits in the lot, hoping the company advertising campaign will bring ‘em in droves. To achieve your automotive selling goals, you have to invest time in reaching out to people on your own.

Call your past clients to see if they’re still happy with their vehicles. These calls shouldn’t take more than two minutes each. It’s just a way of touching base, making them feel important and giving them an opportunity to tell you once again how happy they are. If they’re happy, you have the right to ask them for referral business. If they’re not, you need to know about it because their unhappiness can cost you a lot of future business.

Knowing your target for meeting people is the way to achieve the sales goals you’re reaching for.

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