From couch surfing to car selling superstar! $15k month?

Welcome to another episode of the RussFlipsWhips Podcast.

Today, host Russell Richardson is joined by James, a former cable guy now working in sales at a Volkswagen dealership in Boulder, Colorado. The pair discuss how James turned his life around through car sales along with his insights into what it takes to succeed in today’s dealerships.

You can stream the full episode now on YouTube, Spotify, or Apple.

1. Breaking into the car business.

James went from being a cable guy who slept on his friend’s couch with maxed-out credit cards to making $15,000 his first month selling cars at O'Meara Volkswagen of Thornton, Colorado. He describes acquiring sales skills during his time as a cable guy, which he notes was challenging due to taking place during the height of COVID-19 when people were scared to let others into their homes. Towards the end of the pandemic, he knew that his job was no longer sustainable and transitioned into car sales. Leveraging his new skill set, James would become his store’s “salesman of the year” for 2021 within six months of starting his new position.

2. Why VW?

Even though he would be commuting an hour to work every day, James knew that the VW dealership was the place to work. He notes that what sold him, apart from his previous positive experiences with VW vehicles, was the manner in which the company sales director spoke to him, which he says was far more professional and personable than other businesses he submitted applications to.

3. Training experiences.

Training was less structured than James expected. He explains that the majority of his training period, which lasted 30 days, consisted of sitting in a room with other new hires reading a sales training manual, and running through scripts. When he started out he notes that there were five to six other applicants with him but towards the end, their numbers dwindled down to three to four. James adds he appreciated that there was no shadowing practice at the dealership, as he believes this can lead one to learn bad habits from other employees.

4. James’ first month.

When done with training, James hit the showroom floor running. He began working on the fifth of the month, sold his first car on the 15th, and then sold a total of 15 vehicles by the end of the month, falling just one unit short of the store’s top salesman. He recalls that his manager first brushed him off when he asked how many vehicles he should reasonably expect to sell in his first month, not expecting James to perform so strongly. It took a while for his paycheck to hit but he ultimately deposited $15,000 for his first month of work, which he notes completely changed his perspective on what he could achieve.

5. Driving success.

James notes that one of his first customers became a long-term buyer from the dealership, purchasing roughly three vehicles a year (for both his family and business). This was in spite of the fact that two other salesmen approached this client on the lot the same day but were brushed off. He explains that car sales is a relational business, one that depends on one’s ability to communicate and connect with others.

6. Working for O-Meara.

James’ employer, the O'Meara dealership group, operates VW, Ford and GMC stores. He adds that he often cross-sells the other brands on the pre-owned side, using Facebook Marketplace to post listings. The company discourages sales representatives from cross-selling new vehicles since certifications for multiple brands can be too challenging to keep up with. However, James is happy getting to focus on VW.

7. Consistency is key.

His biggest challenge since starting his new job is consistency. Demand in the car business fluctuates: to continue meeting his objectives, James notes he had to be willing to learn new tactics. “You’ve gotta be a jack of all trades; you’ve gotta diversify,” he explains. He urges other salespeople to avoid falling into the trap of doing the same thing again and again, instead adopting a mindset of pushing past comfort zones.

8. Popular VW models.

James reports that the most popular VW model in his market is the ID.4. Electric vehicle buyers in Colorado can stack the $7,500 federal EV tax credit with a state-funded rebate worth $5,600, leading to a combined $13,100 in incentives. This, coupled with the excellent quality of VW’s EV models, which James says are designed to compete with Tesla, has driven demand for electric cars through the roof in his area. He also notes that the Jetta and Taos entries have also done very well in Colorado.

9. Best of times/worst of times.

During James’ best month, he recalls earning roughly $20,000. Although he notes having to work open to close nearly every day, he adds that VW was offering additional payments to sales staff who moved Arteons, which were selling slower than normally at the time. On the other hand, James says his worst month he only sold four cars. While he still made $6,000 to $7,000 during the period thanks to accessory sales, he adds that heavy fluctuations like this are normal in the industry, which is why sales employees should always save their money for rainy days.

10. Final thoughts.

Many salespeople joined their dealership during the COVID-19 pandemic when car prices and commissions were far above average. Once profit margins began to cool, most of those workers left the car industry to find employment elsewhere. However, James has not only stayed in the business but continues to find success and a sense of fulfillment through his role. He explains that he comes from a customer service background through his experience working in dementia care and prior door-to-door sales experiences. “In all of those environments, it’s uncomfortable for you, it’s uncomfortable for me. It’s how you soothe a situation and build a connection with a person, and that’s exactly what sales is,” he comments. Going forward, James isn’t entirely sure whether he wants to continue climbing the dealership ladder and join management or if he would rather continue working in sales. However, he expects to continue learning and growing in the industry and is excited about what the future holds.

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