August 22, 2023
Sales force management is one of the most complex and critical aspects of running a successful dealership. Managing a sales team requires balancing individual strengths, communication, and structured collaboration. Many dealership sales teams include strong individual performers—often “lone wolves”—who excel independently but may resist teamwork. Others rely heavily on collaboration, where one unaligned salesperson can slow down the entire group.
At the heart of sales force is communication. Sales managers must create an environment where team members can quickly adapt to change, align with the dealership’s goals, and thrive within a structured system. The best way to achieve this is by applying the product life cycle model to guide and evolve your dealership’s sales strategy.
Understanding the product life cycle—startup, growth, maturity, and decline—helps managers anticipate changes and adjust their sales strategies. Successful sales force management means recognizing when your dealership moves from one stage to another and adapting accordingly.
During the startup stage, dealerships must decide how to build their sales team. There are typically two approaches:
Strong sales force management during this stage involves identifying high-potential employees and cultivating future leaders who can grow with the dealership. While outsourcing can support early expansion, building an internal sales force ensures better control, performance tracking, and long-term ROI.
As the dealership expands, new challenges emerge: specialization and scaling.
Specialization:
As your vehicle lineup grows, salespeople must become experts in specific models or brands. Dedicated specialists can boost sales performance, but they also increase hiring and training costs.
Scaling:
Dealers often underestimate the number of salespeople required to meet demand. Strategic sales force management during the growth phase depends on accurate market research. Key questions include:
Market analysis helps determine optimal staffing levels and specialization needs, ensuring the sales force is neither overstretched nor underutilized.
In the maturity stage, maintaining market share becomes the main focus. Dealerships must optimize resources, restructure teams, and clearly define sales territories. Effective sales force management here is about sustaining productivity, motivating top performers, and ensuring efficiency.
Successful managers emphasize retention programs, offer performance-based incentives, and provide ongoing training to keep sales teams engaged. The goal is not just to maintain sales but to continuously improve customer experience and service quality.
During the decline phase, sales force management shifts toward efficiency and cost control. The dealership’s objective is to hold onto existing market share and reduce unnecessary expenses.
For instance, one Chicago-based dealership allows top-performing salespeople—those in the top 2% nationwide—to employ administrative assistants. This small investment improves productivity and client satisfaction while optimizing resources during slower periods.
Smart sales force management during decline involves reassigning territories, trimming underperforming channels, and focusing on customer retention.
Unlike other management areas, sales force management demands a dual skill set: leadership and sales expertise. Managers must balance their responsibilities between motivating the team and achieving corporate sales targets.
To strengthen your dealership’s performance, invest in:
By focusing on training and communication, dealerships can create a positive environment where new sales reps and managers thrive. In turn, this investment pays off through improved morale, higher productivity, and scalable long-term growth.
Effective sales force management directly influences profitability, efficiency, and customer satisfaction. Dealerships that invest in structured management practices benefit from:
Managing your sales team isn’t just about supervision—it’s about leadership, vision, and continuous improvement. Dealerships that master sales force management position themselves for long-term success in a competitive market.
