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Author: Jamie LaReau

Posted on April 26, 2012August 7, 2018

Auto Dealer Finds Recruiting Success by Offering Workers ‘Bounty’ to Bring in Talent

For dealer Frank Allocca, finding service technicians is not a problem.

Allocca, owner of Intercar Mercedes-Benz, Sussex Honda and Newton Kia, all in Newton, New Jersey, recruits many of his mechanics right out of high school.

And it’s no small feat given that his three dealerships are in a rural area in the Northwest corner of New Jersey. Newton has a population of about 8,100 people, Allocca says.

Allocca trains the students who qualify and eventually might offer them a full-time job with competitive pay, generous benefits and pleasant working conditions.

And if that doesn’t work, he jokes, he’ll use bribery.

“If you want to find a service technician, it’s easy,” Allocca says with his gruff New Jersey accent. “Put $1,000 bounty on them and go into your service department and say, ‘I’m looking for a good technician and if any of you find one and he or she stays here for at least three months, I’ll pay you $1,000.’ These mechanics know other mechanics.”

Allocca has hired many mechanics that way because, he says, employees will never recommend someone they do not trust.

The dealer says he spent $6.7 million in 2011 to make his Mercedes-Benz store comply with the brand’s Autohaus renovation requirements. Technicians love to work in a new facility, but doing the remodeling didn’t factor into his ability to attract technicians; his techs earn $50,000 to $120,000 a year.

Allocca says he has annual total new and used sales of about 5,000 vehicles.

And he knows how to handle his mechanics because he spent 13 years as a service manager before buying a dealership in 1973. He speaks their language, he says.

“Most dealers come out of the sales end. They don’t know how to speak to these kids and judge who they can talk to and how they go about it,” Allocca says. “They’re so focused on sales that the service and parts departments are secondary in their thinking process. And finding mechanics is foreign to them because they’ve never worked in that area.”

Allocca also works with area high schools that offer work-study programs. He has donated vehicles and tools to the schools’ vocational technology classes to encourage kids to take an interest in mechanics.

From the work-study program, Allocca says that of every 10 or so applicants, one or two are qualified. He hires them part time for entry level jobs such as oil changes. If they do well and show an interest in progressing, he continues to train them and send them to manufacturer training programs to get certified. He has been doing that for 36 years. Over the years he has hired well over 20 students into full-time service jobs from the program, he says.

“There are a lot of young men who like to work on their cars. We’re in a rural area where there are young men who worked on machinery on their farms,” Allocca says.

Those high school students who come to work for him often lack refined skills, but “they have lots of enthusiasm,” he says.

Allocca says he makes sure his employees are happy so that he doesn’t have to keep recruiting replacements. Of his 133 full-time and part-time employees in all departments at his three dealerships, Allocca proudly says 39 have worked for him for 10 years or longer.

Allocca pays 85 percent of the cost of health insurance for employees and their families. He gives employees holidays off and two weeks paid vacation each year. He used to offer three weeks paid vacation, but he learned many mechanics used the extra week to work for other shops for extra money. So he reduced his paid vacation policy to two weeks but gave each of his mechanics a raise even in the middle of a recession, he says.

“Every employee knows they can walk into my office and talk to me if they have a problem,” Allocca says. “What really makes the difference for us is word-of-mouth by our employees to other employees.”

Jamie LaReau writes for Automotive News, a sister publication of Workforce Management. To comment, email editors@workforce.com.

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Posted on February 2, 2012August 8, 2018

Selling Cars Online Is More than a Typical Sales Job

Kelly Blackwell has sold cars in the Five Star Ford showroom since 1997.

But it wasn’t until he joined the North Richland, Texas, dealership’s Internet sales desk in 2000 that it got really challenging–and rewarding.

“There’s a lot more you have to know how to do. You have to know your limitations in terms of selling and pricing. You have to know how to structure the deal with interest rates and put a package together. You’re managing more of the process,” says Blackwell, Five Star Ford’s Internet director. “The rewards are you’re not outside waiting for someone to drive up. Leads are coming to you.”

At Five Star Ford, moving from the showroom to the Internet desk can be a tough transition for a salesperson. Internet car sales require a different skill set from showroom car sales. Internet car sales skills include an ability to structure an entire sales deal without a manager, a good phone voice and proper enunciation, solid writing skills in e-mails and plenty of self-motivation.

But if a salesperson succeeds, the payoff is sizable.

The average annual salary for a Five Star Ford showroom salesperson is about $50,000, says Tony Pack, owner. But the average Internet salesperson there earns about $80,000 a year, Pack says.

“They make more money selling on the Internet,” Pack says. “They still have to build up their customer list, but over the course of doing Internet business you have a higher CSI score because they’re able to build value and trust with the customer.”

Pack says high customer satisfaction scores mean more commission, increased clientele and more business.

Five Star Ford sells about 4,000 new and 2,000 used vehicles annually. About 40 percent of new-vehicle sales and 27 percent of used-vehicle sales come through the Internet, Blackwell says.

When Blackwell started in Internet sales 11 years ago, much less business came through the Internet. In fact, the Internet desk then consisted of only Blackwell and one other person. But now there are 13 salespeople and three others with Internet related jobs, Blackwell says.

Blackwell and Pack say many customers prefer shopping online and talking to the Internet salespeople because those staffers offer no-haggle pricing. And when a customer wants to haggle, the Internet salespeople are authorized to make a judgment call without having to keep getting up to ask a manager in another room.

“By eliminating the back and forth, the Internet salesperson can build a rapport with the customer right away,” Pack says.

Pack estimates each of his Internet salespeople sells 12 to 14 vehicles per month vs. eight sales per month by each showroom salesperson.

The Internet salespeople handle the entire transaction except for the sale of finance and insurance products, Blackwell says.

“It’s a lot of sitting at your desk and making phone calls. You have to be able to type an e-mail even without spell check. I’ve seen some e-mails that you would not believe,” he says. “There are several people I’ve had to eliminate because they don’t have the phone skills, they’re hard to understand. Our position is it’s not just a sales position. It has to be more than that.”

Internet salespeople have to be able to estimate the value of a trade-in vehicle over the phone, too. And there’s the most difficult task of all: learning how to structure the deals.

“That’s the desk manager’s traditional role and that is the toughest part to teach,” Blackwell says. “Then, there’s the average person who has had some credit issues. That’s where it takes real talent to put together a package. And that’s your typical customer.”

Jamie LaReau writes for Automotive News, a sister publication of Workforce Management. To comment, email editors@workforce.com.

Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.


 

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