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Jon Shafer
01-05-2003, 04:47 PM
This is an excerpt of a memo from an anonymous BMWNA exec...

"I thought I would also include a few thoughts as we embark
on a new sales year - something to think about as things will
certainly not stay "status quo"...change is imminent and
everyone needs to be prepared - so here is something to
consider:

As most of you would agree, our business is going through a
rapid transition. We are moving away from a market that was
demand driven and are entering a supply-driven environment
that could last as long as the high demand market did. What
changes will this transition bring?

To survive in this new supply-driven environment, our volume
must keep pace with the increased supply. As a manufacturer,
the increased volume is critical. Volume allows us to remain
independent and it provides the necessary revenue for product
development. So, when supply exceeds demand, where does
the volume come from? We must take business away from our
competitors.

In order to increase volume we will also need a more productive
sales force - not necessarily more sales people. Thus, we must
retain our peak performers. Our customers have direct access
to information on the internet and they can make an untrained
salesperson look very silly in record time. We all know that the
money is in referrals and we also know that high CSI results
from relationship selling. In the case of a peak performer, the
customer buys from the person, not the store. And, when that
peak performer leaves, he/she takes those customers with
them. In addition, if we are looking at key components to high
performance, we can no longer tolerate the 4-to-5 car a month
salesperson. That sales position is too highly valuable and
must be more productive. We have to hire, train, evaluate
and motivate. The self-motivated people are out there and
they have the attitude and the aptitude. We must provide the
training, recognition and motivation to move them in the direction
of the supply-driven market."

Mystikal
01-05-2003, 04:51 PM
Quite aggressive. May result in fierce competition bewteen consultants, and promises of unreasonable deals just to complete a sale. Be prepared, Jon. :thumbdwn:

F1Crazy
01-05-2003, 04:57 PM
Quite aggressive. May result in fierce competition bewteen consultants, and promises of unreasonable deals just to complete a sale. Be prepared, Jon.

It can also mean more customer friendly and knowledgeable sales people, no more attitude!
I don't think Jon has to worry.:)

johnlew
01-05-2003, 05:00 PM
These tenets are true in ANY sales environment. It's when demand exceeds supply that sales professionalism suffers, except from true professionals, of course.

Mystikal
01-05-2003, 05:03 PM
Originally posted by F1Crazy
It can also mean more customer friendly and knowledgeable sales people, no more attitude!
I don't think Jon has to worry.:)

I'm doing a Managment course currently, and I did an entire study on this type of strategy. Of course, since it's in school, I have no recollection of it out of the lecture hall. :banghead:

It could go either way, but if the advisors were already friendly and helpful a-la Cutter Motors' staff, this may turn out to have a negative result.

ObD
01-05-2003, 05:34 PM
Well, we consumers will be happy. Hopefully BMW management will put their $$$ where the performers are. Sadly, management has the tendency not to back up their claims.

F1Crazy
01-05-2003, 05:39 PM
Mystikal,
Unfortunately not all dealerships are as friendly as Cutter Motors.
When shopping for my car me and my wife encountered some strange sales practices from local dealer, even tough the staff seemed friendly at first. We were asked to put deposit down on a car before we even started price negotiations. This was supposed to give my sales advisor some leverage in talks with sales manager, WTF?!!!
This pushed us to look at other cars :tsk: and we were pleasantly surprised by staff at both Infiniti and Lexus. Having bought Lexus from that dealership before I almost bought another one. Fortunately I came to my senses and decided not to give up and look at other BMW dealerships and found one in the other city.
Competition is really working hard to take sales away from BMW and I say it's really high time for some changes. Changes will come and this letter means that BMWNA has their eyes wide open despite wonderful year.

Bill97Z
01-05-2003, 06:19 PM
Good letter....hopefully my salesman will get fired. He came from volvo and knew nothing about the options packages. He even tried to overcharge me on destination because "...oh I am sorry....thats what we charged at volvo......my mistake" @#$#%$%^ Thank god I did my homework.

I think they should go towards internet selling at a fixed price over invoice....fire all the salesman to reduce costs, and hire some specialty techs, to administer test drives, answer questions and show customers the product line.

to increase more custmers, BMW should increase the HP numbers in the 325i and 330i. a lot of buyers are turned away because a 20K car has more HP, and they have no idea what driving a bmw is all about...........

Cliff
01-05-2003, 06:25 PM
I love how the memo says the market is changing and the dealers and sales staff have to adapt. Nah, I think BMW sees a need to grow market share to maintain a strategic position in the industry. I hope they don't dilute the product much during this endeavour...

TD
01-05-2003, 06:28 PM
Originally posted by Jon Shafer
"Our customers have direct access to information on the internet and they can make an untrained salesperson look very silly in record time."


:lmao: :lmao:

And much of that is thanks to you, Jon. :thumbup:

Nick325xiT 5spd
01-05-2003, 06:37 PM
Maybe we'll get LSD with our cars... ;)

It's irritating to have EVERYONE rag on the Bimmers thanks to the open diffs.

Most people I've talked to who know something about cars are SHOCKED when they hear that Bimmers are crippled by open diffs.

F1Crazy
01-05-2003, 06:39 PM
As posted by Bill97Z:to increase more custmers, BMW should increase the HP numbers in the 325i and 330i. a lot of buyers are turned away because a 20K car has more HP, and they have no idea what driving a bmw is all about...........

There seems to be horsepower war going on, have you seen new M-B AMG monsters? People go for it, in our society more is better...
What about less weight?

Cliff
01-05-2003, 06:51 PM
Originally posted by Nick325xiT 5spd
Maybe we'll get LSD with our cars... ;)

It's irritating to have EVERYONE rag on the Bimmers thanks to the open diffs.

Most people I've talked to who know something about cars are SHOCKED when they hear that Bimmers are crippled by open diffs.

We are moving away from a market that was
demand driven and are entering a supply-driven environment
that could last as long as the high demand market did.

Can you say X3?

Parump
01-05-2003, 07:25 PM
Jon,

Franco and you have provided excellent service, and in my opinion, are utilizing the sales tenets listed in the letter. Likewise, I sincerely hope that BMWNA is supportive of your efforts with bimmerfest.com. I believe that the information posted on this board by the HACK, Alex Baumann, Vince, Kaz, and others have only increased our appreciation and enthusiasm for BMW vehicles. Maybe Tom Purves could post a note commending the board and acknowledge the value of this forum.

Wishful thinking?

The Roadstergal
01-05-2003, 07:38 PM
Originally posted by F1Crazy
As posted by Bill97Z:

There seems to be horsepower war going on, have you seen new M-B AMG monsters? People go for it, in our society more is better...
What about less weight?

"Add lightness."

Great idea, not the American way. :rolleyes:

bimmerguy
01-05-2003, 08:34 PM
Well its more than that for me. I have waited over a year for a simple key memory fix on my X5. The fix is finally out and now the part is back ordered. We all know whats happening with the legendary M3 engines. Kinds of brings my wanting to buy a used 01 or 02 M3 to a screeching halt.

BMW needs us more than we need them esp. now in these uncertain times.

Who is working on the bug fixes when they introduce a new model every other month?

brave1heart
01-05-2003, 08:51 PM
All I'm reading in this memo is a layoff preannouncement - if you're only selling 4-5 cars a month, you're out. It's pretty standard among larger corporations. I had to deal with some totally ignorant and arrogant BMW salespeople when I bought my car. It seems like reality is finally settling in...

naiel
01-05-2003, 10:41 PM
Someone send this to all the Dallas area dealers. They make you think they are doing you a huge favor by selling you their cars. Then they give you little to no servce. If I didn't love the cars so much, I'd go buy another Lexus. They couldn't possibly provide better service.

just my 2 cents :D

cruztopless
01-05-2003, 10:48 PM
I wish the memo dealt with the issue of CUSTOMER SERVICE, but brave1heart is right in that it is nothing more than a "layoff preannouncement." The word VOLUME kept popping up in the memo ... what about CUSTOMER SERVICE???

Hmmm ... maybe I should print this out and take it to my local dealership when trying to negotiate a $1000 dealer profit over ED invoice. :D

Marcel

Clarke
01-06-2003, 02:24 AM
Yes I'm afraid this looks more like its telling the the salespeople to be more aggressive or lose their jobs.It throws a bone to education but an educated sales advisor who does not close often enough will be history.Lets face it most of the buyers are not better informed(outside of enthusiast boards)than tha sales staff.This Memo seem to boil down to sell alot or go!

car_for_mom
01-06-2003, 03:34 AM
My recent experience really supports the idea that it's the indvidual salesperson , combined with the dealership that makes the difference.

Within a 30-mile radius of Chino Hills are: BMW of Riverside, Savage BMW of Ontario, Shelly BMW in Buena Park, McKenna BMW in Norwalk and Assael BMW in Arcadia, Irvine BMW, Crevier BMW in Santa Ana.

Other dealers fairly close by are: New Century BMW in Alhambra, Rusnak BMW in Thousand Oaks. And. of course, there are the dealers in Lost Angeles itself.

I visited Savage, McKenna, Assael and Crevier; Savage is the closest. At Savage I was told that "we don't have any manual transmission BMW's because hardly any customers want them".
I was, quite frankly, put off by the attitude at Assael and especially McKenna; that place had a very dreary atmosphere!

When I went to Crevier and said I was interested in a 325i with a manual, they had one for me to test drive, the salesman (Paul Mooradian) was easygoing and helpful, the dealership pleasant and friendly. During the waiting period, I was able to get my questions answered and when I picked Karl up, walking in with two checks, one from my account and one from peoplefirst.com for $9K at 4.50%, Crevier said, "oh, we'll give you 4.25%"; since I plan to pay the 9K in 6 months or less, Lord willing - great!

Cutter is definitely another dealership I would consider; my only concern was that I was well along in the process with Crevier, and I figure that the dealer you buy the car from is, in general, the dealer you want to take the car into for service :dunno:

vern
01-06-2003, 07:50 AM
You should go to dealerrator .com with you comments about the dealers you went to and your experiences so every one can benefit from them.Any one else that feels like they also want to go to dealerrator with there comments should do so .It would help others in there buying or service.
vern

Ausgang
01-06-2003, 08:02 AM
I don't know what 'transition' this person is pointing to, but worldwide automotive production supply has exceeded demand for quite some time.

Ongoing consolidation has been the result for years, and will continue.

F1Crazy
01-06-2003, 08:16 AM
I don't know what 'transition' this person is pointing to, but worldwide automotive production supply has exceeded demand for quite some time.

Ongoing consolidation has been the result for years, and will continue.



It hasn't been the case with BMW and Porshe yet, but it means they know it's coming.

car_for_mom
01-06-2003, 08:49 AM
Originally posted by vern
You should go to dealerrator .com with you comments about the dealers you went to and your experiences so every one can benefit from them.Any one else that feels like they also want to go to dealerrator with there comments should do so .It would help others in there buying or service.
vern

Vern - I'm probably typing something incorrectly, but I could not find this site?

Capitalist
01-06-2003, 10:37 AM
[As most of you would agree, our business is going through a rapid transition. We are moving away from a market that was demand driven and are entering a supply-driven environment that could last as long as the high demand market did.


Since when has that been the case? Supply-driven market means demand is higher than supply and manufacturers can easily sell everything they produce. In a supply-driven environment the emphasis is placed on increasing production, not improving customer service. I think that exec has his economic terminology mixed up because there is no way we are moving back towards a supply-driven market (the last time that was the case was in the 1920's). The only way this could happen would be if the total manufacturing capacity of BMW and its more or less direct competitors was less than the total demand for luxury automobiles. In other words, you need a huge and rapid increase in demand for luxury autos in order for the market to become supply-driven.

vern
01-06-2003, 10:48 AM
sorry it should be dealerrater.com
vern

in_d_haus
01-06-2003, 11:18 AM
All very true. My first new BMW purchase was from a salesman that knew almost nothing about BMWs.

I wanted the car so I told the guy what I wanted and how much I'd spend and sent him away to do the work.

I now have a salesman that is very knowledgeable and not only will I only buy from him but I recommend him to everyone!


Hmmm...doesn't mention Parts department sales though :bigpimp:

Cliff
01-06-2003, 11:40 AM
Originally posted by in_d_haus
Hmmm...doesn't mention Parts department sales though :bigpimp:

You mean the SB Parts Dept? I just submitted a request to them this morning (CD trunk liner, CD brackets, etc.) via the web site, he called me back an hour later and we placed the order. :confused: