Making the career switch - dealership personnel to vendor

Replies to This ADM Discussion

Permalink Reply by Joseph B Antley on August 13, 2008 at 8:51pm

Hi Joe,
I spent 6 years in the dealership, sales and management. The transition to vendor for me was simple. I wanted to be on the road but I missed the comraderie at first, and even now it seems all my friends still work in dealerships. I will say this; when customers or prospects learn that i used to work in retail, I have waaaay more street cred than other vendors without the same experience. I like calling on dealers, I understand the roles everyone plays in a dealership and maybe most importantly, I know when NOT to show up!

Fun topic, and I look forward to reading the other responses.
Joe

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Permalink Reply by David T. Gould on August 13, 2008 at 8:56pm

Joe,

Been there done that... twice if you count my new position as vendor working for someone vs. my own business...

How does it go? An industry professional is anyone who plies their trade more than 50 miles from home...

I found local dealers (in general) to be resistant to assisting with my success within any area they felt threatened. ie... senior sales management... (inventory, advertising) But, also must acknowledge that I succeeded very well with their participation in areas of service / customer support.

I thank each of them for their past, present and future professional business association(s).

dtg

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Permalink Reply by Tom Raines on August 13, 2008 at 9:06pm

WOW What A Topic and A Good One Too.

Well for me personally My switch is not so hard. My New company will still manufacturer vehicles and motorcycles. However it is also an OEM Vendor now. Now taking on the part of the being a vendor will some what of a challenge. Keep in mind though that I wont be entering this venue cold turkey! I been in the Auto Industry for a years and therefore not a newbie to where parts are made, engineered and designed.

Pros. I do know where to get stuff made and how to make it house at a lower cost. Lower over head of making parts etc.

Cons, Getting the foot in the door, Once you do you may still have to have a courtship stage before reaching the pro stage.

Becoming a Vendor dose mean getting your company's name some how some known to the companies you want to supply to. Trade Publication at a big way, Networking Still Works. Calling and asking to speak to the purchasing departments. But also keep in mind in many case's if you don't have a name your not gonna get any one. So then you will have to send a fax and oddly this works both ways. So if you gonna be a supplier make sure you have it policy were new customers can speak to sale staff with out having to Know Someone or having to make a Fax! Keep this in mind whether if your company will sale to Auto Makers or to Auto Dealers.

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Permalink Reply by Craig Criswell on August 13, 2008 at 10:46pm

Yes, a very interesting topic. I spent many years in dealerships, selling and running internet departments. I saw the tremendous opportunity the internet offered to dealerships and decided to start my own internet consulting business. It was frustrating to see how many dealership owners and upper management personnel just didn't get it nor had any interest in wanting to. The Internet Directors saw the potential but they were not the decision makers. I did have success and enjoyed working with dealers much more than for dealers.

However, my business was bootstrapped and money only goes so far. I took one more offer to go back into a dealership. After setting up and making them successful, I was told my services were no longer needed and shown the door. That was my exit from the automotive industry for good. If I had to choose, working with dealerships in some capacity to make them more profitable is far more rewarding than being in a dealership. But you'd better have deep pockets or a solid backer.

By the way, I am now a Virtual System Administrator for a global company working entirely online - and loving it. Best of luck in whatever you do.

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Permalink Reply by Stan Sher on December 21, 2008 at 7:49pm

I am kind of in the same boat right now. I am looking to get into consulting and planning a website to build. Now is the perfect time to get in there and help stores setup internet departments. I am just not sure how I want to do it. I know I am good at working it alone. The pockets are not deep and I know I do not want to work for a dealer anymore. I also know that I can use RedNumbat as part of my consulting services.

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Permalink Reply by Philip Zelinger on December 21, 2008 at 9:27pm

Hi Stan,

There have been many discussions on ADM similar to this one, I even started a few myself, but they all came to the same conclusion. Wether we "think" we work for a dealership or for ourselves - we are always in our "own business" responsible for our own productivity. Most dealers don't discuss the line item precentages that they assign to a specific department and/or individual within it tied to percentage guidelines that if not met result in dismissal. Even "salaries" eventually become accountable to productivity so the only difference between being an "employee" or an "employer" is in the ceiling - not the floor since those "guarantees" will disapear if the profits or market do - sort of like what is happening now!

As for "working it alone" - why? Networking resources aren't limited to the staff at a delaership. The professional network that you have available through ADM - for example, will provide the same resources and support as any dealership can as long as you reciprocate by helping them out when they need it as well. After all, what are friends for!

Outsourcing staff - such as what you are contemplating - is a cost effective way for dealerships to limit their HR expense and exposure and reduce facility costs when times get tough and they need to reduce fixed and semi-variable expenses - like now! Having professionals such as you working on a "project" and/or pure retainer tied to performance is simply a variation of the same process as managing and monitoring a full time employee - but better for both!

AdAgencyOnline.Net is a full service automotive advertising agency made up of a network of independent affiliated automotive advertising agencies, production partners and selected vendors that are linked by our online communication / distribution system to provide consulting and auto dealership related services across all departments - real and virtual. I suggest that you link up with our network to access our leveraged resources while adding you and yours to me and mine. That way - you will never be alone! No charge, only shared revenues if we involve in a shared project which frankly provides you an inventory of additional services and products that extend your value across multiple channels that you couldn't provide alone.

Of course we will be talking about setting up your seat on the "Advisory Board" and blogging for our contemplated "Auto Industry Insights" social networking site soon and we can talk then, but in the meantime visit my site and click on the "Agency License" opportunities on top of the "Free Automotive Advertising" links and read about our business model for independents - like you - to leverage their resources and help them build their own business - but this time you won't have to worry about downsizing or a manager who dosen't like the way that you tie your shoes!.

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Permalink Reply by Stan Sher on December 21, 2008 at 10:40pm

While I will be talking to you tomorrow in the midst of running different errands, I will certainly look into your site more on Tuesday. I think being on the "Advisory Board" will open up some doors for me.

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Permalink Reply by Ralph Paglia on August 14, 2008 at 1:47am

Joe,

I know there are quite a few automotive professionals that have made the leap from dealership careers to working for suppliers, but how many people have done that and then gone to work for a dealer again after working for an OEM or a supplier for more than a few years?

I started my automotive career selling cars at a dealership, moved up through management over a 10 year period, then left the dealership to buy a business outside of automotive... Discovered the stories about the car business infecting people were true, went to work for a supplier as a sales trainer (Thanks to Danny Alkassmi), then accepted an unsolicited job offer to work for Red McCombs Automotive Group in San Antonio, TX. Retail for another couple years, then accepted a supplier side job with Cyber Car (Half-a-Car), which was later acquired by Reynolds and Reynolds. After more than 6 years at CyberCar/Reynolds, I accepted a job at Courtesy Chevrolet for almost 2 years, and left Courtesy (very difficult decision, great store, great dealer) 18 months ago to accept my current role at ADP... So, can I relate to making transitions from dealer to suppler, to dealer, and then back to supplier? Yup...

A couple words of advice... Don't burn any bridges, if you can avoid it. When leaving a dealer on a voluntary basis, try to offer 30 days advance notice, and offer to recruit, interview and hire your replacement because you do not want your departure to hurt the dealership's operations or profits in any way. The dealer will most likely decline, whack you on the spot, or say 2 weeks notice is plenty...

The important thing is to never hurt a dealer who has treated you fairly and provided you with career growth opportunities... After all, it is probably because of that dealer's confidence in you expressed by promoting you into management that is why your new prospective employer wants to hire you in the first place! Yeah, yeah, yeah... I can hear all the griping already... We all think we are God's gift to the car business, but after deluding yourself, at least own up to the fact that you probably were given a lot of opportunity to develop your skill sets because a dealer or GM believed in you!

The first dealer I worked for made me take a pay cut to accept a management position... But, I was glad to sieze the opportunity and I have never regretted it. So, don't ever equate the pay plan you accept with fair or unfair, as long as it has been properly administered and accounted. The way this business works, I can assure you that what the dealers say that you have worked for in the past, will help determine your opportunities for success when going to work for a supplier... So, before you acept your new job, be sure to insist that your new supplier-side employer will assist you in developing an exit plan. When I left Courtesy, ADP agreed to provide my professional service to the dealer for 6 months on a consulting contreact to ensure that Courtesy would not suffer as a consequence of my departure... And, if you have never been responsib le to recruit, hire and train your own replacement before, you should try it... You will learn a lot! Plus. it helps reduce the amount of diesel fumes you have to breath when you are getting rolled under the bus on daily basis after you leave the dealership... Yes, as strange as it may seem, we have a cultural practice in the car business that allows remaining managers to blame all ills on the former manager(s) for at least 6 months before they have to take ownership of the problems when responding to the dealer's questions.

When you go to work for a supplier, make sure you set a proper level of expectations before you accept the job... Ask for six months of training... Ask that you be given your annual bonus or commissions that have been promised, as a guaranteed income paid monthly during your first year as you get ramped up. Maybe you won't get it, but ask so that you have at least set up proper levels of expectations

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Permalink Reply by Matt Watson on August 14, 2008 at 5:45am

This is a great topic. Our company, VinSolutions, has hired dozens of employees that used to work for dealerships. In a lot of positions within our company we will only hire people who have past automotive or dealership experience. So I hear this topic discussed at work all the time. I've never heard any of them say they miss working at car dealers.

We always laugh that if the software business doesn't work out, we'll just start our own dealership. We'd have an all-star crew.

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Permalink Reply by Kim Clouse on August 14, 2008 at 6:18am

Joe,
I have been in the dealership scene for a long time. We have all seen and heard the ups and downs. Now that I am starting to consult more, I find that I am scared to let go of the side of the pool. I have talked to a lot of very talented people who are in the same boat. Insurance cost a ton, travel and lodging are going through the roof, and dreaming of working when we want and where we want goes away as soon as the first dealer group says I need you to be in a city 500 miles from here tomorrow. This is a scary thing for people who are in their comfort zone. Also, everyone is a consultant now. They have the latest numbers, tricks, gadgets and gismos and many of them are very good because they are not tainted by the business. I am personally worried that we are too focused on all of this great technology and we forget to teach the basics of being a professional sales consultant. When I go into some of these stores, I find that there are no basic skills, just catching and pricing, even online. I am going to hang on to the side of the pool a little longer. At present, I am going to do the Sales Manager job and ISM at Scott Crump in Jasper, Al. I have a great owner who knows I assist other dealers. I will keep helping the folks I have scheduled and work slowly towards making the switch full time. If I can get everything together here it will be a good test.
Best Wishes to All,
Kim

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Permalink Reply by Philip Zelinger on August 14, 2008 at 6:53am

Hi Joe,

I'll answer your question from two perspectives since they differ greatly. First, switching from a dealer principal to "vendor" principal" - drawn from personal experience - and then from an employee in a dealership vs. working for a vendor targeting the auto industry. The employee's role is one that I can relate to from the experiences of my many partners in Ad Agency Online. They were drawn primarily from employees in the auto industry who opened an affiliated office with me,(with my money and support to take the financial the pressure off and provide emotional support), so they had the experience of an employee with the value of ownership as an added incentive.

The "entrepreneurial" spirit that is so critical for success in the automobile business is equally valued for the vendors that intend to open a business to market to car dealers. The "stress" - both financial and emotional - is higher in the car business than any other business that I have ever experienced! My personal professional career only existed in the auto industry, going from salesperson to general manager when I was 21 years old and then to dealer principal over a 25+ year career - BUT, I gew up in a business family that gave me a restaurant for my 13th birthday!

My "family business" was business! My father would purchase a commercial building, evaluate the leases to determine the "highest and best use" for the space and when the right lease expired we would open a more appropriate business, ranging from a supermarket to a Blimpies Sub Shop.
After buidling up the business we would sell if for the assets plus blue sky, raise the rent supported by the new proven income of the business, and use the resulting increase in the NOI, (Net Operating Income) of the building to refinance the debt service - while still leaving a positive cash flow and enhanced value of the building - and then start all over again with a new building and business!

Those business experiences pale in comparison to the skill sets, people skills and BALLS needed to succeed in the car business; even more today than yesterday and no where near as much as tomorrow! My point, if you can succeed in the car busines you can succeed as a vendor to the car business. More importantly, my "claim" to be a "Car Guy specializing in advertising/consulting rather tha an Ad Guy specializing in the car business" played a critical role in my almost instant success as an advertising agency.

Ok, now what about taking a job - same basic principle but a few personal qualifiers must be applied. Can you afford the transition? The work ethic required to succeed in the car business, assuming that you are a professional car salesperson or manager of course, is a valued resource and asset for any employer. Why do you think most vendors to the auto industry - including me - look to the car dealerships for their staff!

The problem is that most vendors correctly establish their compensation packages with a high focus on productivity and performance; in other words - commission on sales. The truth is that any successful car dealer had you on the same kind of performance based compensation package but it wasn't as transparent. Even that "salary" that you thought you had was evaluated every month vs. a line item percentage called "cost of sales" that determined if your R.O.I. for the dealer was justified. If it wasn't, you either got a pay cut or pink slip but you never knew it was because you had the wrong pay plan. It may not have been your fault, the dealer may have done the wrong math when he said whatever he had to say to hire you, but the bottom line will always surface when a good controller or dealer studies his P&L.

If you can cover a few months of bills until your sales mature then shifting from the retail car business into a vendor - especially one that is focused on internet or technology - is more than a good idea; it is almost a mandatory career move!

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Permalink Reply by Sarah Draley on August 14, 2008 at 7:10am

I'm not alone when I say this is a great discussion... wtg Joe!

I started in the auto industry as a vendor in lot management. I soon realized if I wanted to be a better vendor, I needed to work within a dealership.... sort of as a spy. So as part of my journey to become a better asset to dealerships as a vendor, I worked as the Internet/Scion manager for a store in Chicago. What I learned from this experience has become core to my knowledge within the auto industry.

It wasn't long before I started missing the relationships I had developed with other dealerships, so now I'm back to being a vendor. (Sorry if that sounded sappy... I guess I'm not a "one dealership gal.")

I completely agree with Joseph Antley... vendors who have worked within dealerships have "waaaay (yes it was 4 "a's") more steet cred than other vendors without the same experience."

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