Ge Hui: Retailing allows 4S stores to move forward in a healthy way for used cars

On November 19, at the "Breakthrough-Refined Open Source under Inventory" sub-forum of the 2020 China Automobile Dealers Summit Forum, Ge Hui, director of re-owned cars of Hebei Zhongcheng Automobile, spoke in "Retail Letting Second-hand 4S Stores It is mentioned in "Cars Moving Forward" that the second-hand car business is the engine that drives the sustainable development of dealers. Hebei Zhongcheng builds a systematic and large-scale second-hand car retail business, from cultivating a professional second-hand car team to carrying out targeted sales. Market activities and the marketing of multiple brands of second-hand cars, combined with the support provided by manufacturers in sales policies, will form a benign integrated circulation system of new and used cars, and will become the most effective way for dealers to tap the dividends of second-hand cars.

Speech Record

Dear leaders and guests, good afternoon!

Since the 2020 COVID-19 epidemic and the further escalation of the Sino-U.S. trade war, the U.S. election has had a certain impact on us. Under this premise, China's automobile consumption, as one of the very important consumption items for ordinary people, is very important to us. The impact was pretty big. For example, credit, insurance, and car decoration mean that while gross profits are decreasing year by year, how to find new growth and profit points has become a topic of greatest concern to car people. Second-hand cars have existed in 4S stores for many years. How can second-hand cars bring more benefits to 4S stores in such an environment? This is what I will bring today.

First of all, let me introduce you to Hebei Zhongcheng. Hebei Zhongcheng was established in 2006 and covers a total area of ​​20,000 square meters, including an exhibition hall construction area of ​​1,200 square meters and an after-sales service workshop construction area of ​​4,700 square meters. Since 2006, it has won the highest star honor from SAIC Volkswagen for many consecutive years. Hebei Provincial After-sales Technology Center Station. Hebei Province training benchmark store. This is my personal experience. I joined the company in 2011 as a sales consultant, sales supervisor, training manager, sales manager, and used car director.

First of all, let’s look at a set of data. There are 29,774 dealers in the country. How is our business situation? The survey showed that in the first half of this year, 48.4% of dealers suffered losses, 42.9% of dealers maintained the same level, and 8.7% of dealers reported profits. 1,019 dealers have withdrawn from the network and 824 new ones have been added. The new networks mainly come from traditional new energy and new car manufacturing companies.

Let’s take a look at the sales situation. The cumulative sales volume in January and October 2020, in the narrow sense, was 14.92 million units of passenger cars. With so many cars sold, how profitable are we? In the first half of the year, brand differentiation was obvious. Dealers were under great pressure to complete their tasks. Only 21.5% basically completed their sales tasks and achieved sales growth. Among them, sales volume decreased by 10% to 40%. Dealers accounted for a large proportion, and 17.2% of dealers experienced a decrease in sales. More than 40%. According to the content and feedback from the main forum in the morning, new car sales are declining year by year. In the first half of the year, the number of dealers without inversion dropped from 20.1% to only 16.4%. This series of data reflects the new car market, or the condition of new cars is very poor. Under this premise, let us think more about how to make used cars.

This is the second-hand car transaction situation from 2015 to September 2020. Second-hand cars are currently a trend, and we have to do it to gradually transform from an incremental market to a stock market. How do we do this market? We just looked at the transaction volume, let's take a look at the transaction volume. The transaction volume has grown by double digits every year from 2012 to 2019. After everyone sees the volume, they must be thinking about whether we can get a share of the pie or bring more benefits. This is what all of us want. Something to think about.

This is an analysis of passenger cars. As second-hand car owners, what do we pay more attention to? Including the gradual increase in the proportion of additional purchases, where do we find our customer base? From trade-ins and additional purchases, but this is not just a problem for us second-hand car owners. The decline in new car sales and the growth of second-hand cars are mutually complementary issues. We cannot expect the sales of second-hand cars to do well, but work together with the sales of new cars.

This is an analysis by car series, including car age, the proportion and proportion of second-hand car replacements year by year. Those that are more prominent vertically are marked in green, and those that are more prominent horizontally are marked in red. One problem can be seen from this set of data. Domestic cars are more likely to be traded in, while joint venture cars will only be traded in 5-8 years. This picture is from the perspective of my second-hand car. If I replace it or buy a domestic car, we will consider how to exchange these customers for new ones, because from a Volkswagen brand, this kind of product power and influence can still be achieved. Affected a group of domestic car customers. Judging from this data, Dr. Xiang, the main forum in the morning, mentioned Chinese cars. Judging from the replacement time, the recognition of our domestic cars by customers is very important.

We hope to increase the company's profits and our gross profit as much as possible through the second-hand car business, creating more profit points for the company. How to do these two points, or what should we consider during this period? I just looked at the data and saw that second-hand cars are very good and are on the rise. But in reality, are second-hand cars as good as we imagined among the front-line consumers? In fact, it is not the case. There are still a lot of worries in daily work. Here I will summarize a few points, which are the pain points. First, there is the problem of car supply. I am afraid to accept them, the cars are in poor condition, and the retail sales ratio is small. Second, customer sources, channels are narrow, and reputation is poor. Third, management is not professional enough and the system specifications are not perfect.

Fourth, sales, the gross profit of bicycles is low. These four content problems have arisen. How should we solve these problems? What is the most fundamental pain point? I think the most fundamental pain point is retail sales. Only by continuously increasing the proportion of second-hand cars in retail sales in second-hand car departments or 4S stores can these problems be solved. How to do retail? What are the specific difficulties in the work content? What are our ideas and methods? Let’s analyze it below.

First of all, the car source module has a small quantity. We adopt the strategy of collecting cars at high prices. The so-called high-price car collection strategy is not to collect all these cars in one go. We take advantage of the policies given to us by the manufacturers, including replacement subsidies and policies for certified cars. Especially for models in very good condition, from our side we must charge a high price, because only good models can be sold at a good price. It will definitely not work if you don't understand the market and don't understand the market situation. Therefore, you must have very important market control to raise the price.

The condition of the car is poor, and each car is priced according to its condition. What should I do if there are many bad cars on the market now? So our idea is one vehicle, one price, one condition. There are not enough cars in the market to buy accident cars, flooded cars, and burned cars. I think this idea is right. If you want to buy accident cars, flooded cars, or burned cars, you must make it clear to customers. All customers will consider this model. , because we have this idea. Calculated from the replacement price range of second-hand cars, from 30,000 yuan to 50,000 yuan, the replacement rate of our second-hand cars reaches more than 33%. This kind of market can be found in the price range, so many people switch to second-hand cars because of the price. The proportion of retail sales is small. From the second-hand car market, after the second-hand cars are produced, there will be many purchasing points, or mid-level or large-scale purchasing factories. In the uneven system, we need to improve the system.

From the perspective of customer sources, the channels are narrow. The channels are narrower than the retail channels. To solve the problems of oneself, one is the particularity of the location, and there are sales consultants. I want to communicate with you about this. Sales consultants Content. Second-hand car sales consultants must ask them to go out for a walk instead of buying a few cars. We also need to provide relevant incentives for showroom consultants and new car sales consultants. Otherwise, relying on more than a dozen second-hand car personnel will not be enough to achieve the goals set by the company, nor will it be enough to achieve the company's goals of increasing retail revenue or gross profit.

As for the poor reputation of second-hand cars, you may have paid attention to or come into contact with them. Second-hand cars are more like a one-time deal. Once you sell this car to you, you will be done with it, and you will never deal with it again. This It’s how to provide services and how to pave the way for referrals from our customers. First of all, we need to provide them with car condition guarantee and provide them with a satisfaction survey after buying the car.

The management module is not professional enough. How can the 4S store prepare or train these people to make its team stronger and stronger? I think the personnel capabilities and equipment must be advanced and advanced. Professionally, what we summarize is the evaluation, maintenance, and refurbishment techniques, which should be as consistent as possible with the reception standards and service standards of new cars, as well as the exterior decoration content to be more attractive. Also, what kind of car does the customer want, what are his needs, and whether our car sources can meet their needs. This is the ability of our second-hand cars, not just the ability to build new cars.

The specifications are not perfect and the process is implemented. We mainly focus on process monitoring and performance appraisal. The customer's sales satisfaction must be monitored. If they are not satisfied, we have to evaluate the sales consultant. If they are satisfied, of course we will Faculty advisors will receive rewards.

Sales module, what does Hebei Zhongcheng do in second-hand cars? First, cultivate a professional team of personnel, followed by targeted marketing activities, as well as multi-brand marketing promotions, as well as excellent market management, excellent process management, high-standard vehicle maintenance, exclusive parking spaces in the exhibition hall, and the use of manufacturer policy support, which is unforgettable A warm handover ceremony. We let customers feel that the second-hand cars in Zhongcheng are different from second-hand cars outside. What specific differences have we made for these contents? Let me share it with you.

The first is the team. The team consists of the second-hand car director, followed by appraisers, sales consultants, maintenance engineers, and below the appraisers, there are showroom appraisers and channel appraisers. Among the sales consultants, there are showroom sales consultants and channel sales consultants. Only in a team of 20 to 30 people, and everyone is engaged in sales, can we achieve the leading position in the industry.

This summer, we held a special second-hand car event. What I want to share is the second-hand car source. Usually customers will ask to help me find a car. When we have one, After the customer information and the car source information are matched, how to make the customers less worried after the matching, through the atmosphere of the event, more conversions and submissions, submit our conversion rate, increase our profits, this is done in the new car showroom As a special event, I think it’s pretty good.

This is the content of the policy announcement. All activities will involve this activity. This is for everyone to find fault. The store has prepared 13 cars, but only one car has a problem. The customer finds out the problem and asks the customer to find the problem with this car. What's not good is that this will further deepen your confidence in second-hand cars. What if you find out? This is not a bad thing, it makes our preparation work better and better.

In addition, when a second-hand car is usually placed on the exhibition stand, the car with the highest gross profit will be placed in this position. Sales consultants are also reminded every day about the cars they will sell. You don’t have to worry about whether it will have an impact on new cars. In fact, the impact is very small.

When the openness rate increases, two people talking about this matter to 30 people are definitely two different concepts.

The following is the maintenance content, which is divided into interior beauty and exterior beauty. Interior and exterior, any defects must be dealt with before launching the product to achieve the best condition, so as to increase the price of the vehicle. Sell ​​higher and make profits a little richer.

Here is the specific execution process. The execution process must first follow SAIC Volkswagen's requirements for us and write the evaluation form normally. At the same time, I suggest everyone pay attention to some details, that is, white gloves. This white gloves are for Evaluate the car. After evaluating the entire vehicle for the customer, quote a qualified price range to the customer. Use the price range to understand the customer's psychological expectations. What is the reason for giving the customer a psychological price range? It is through this evaluation form that you must pass the evaluation form to make customers more aware of your price framework. What is expensive for me and where is cheap? Compared with the outside world, what are other people’s prices like? How is my price higher? Where is the low point? There must be a reason, and we must tell the customer that this is our interior inspection, chassis inspection, and car delivery ceremony. Many friends may ignore the car delivery ceremony. New car 4S stores will hold it very grandly, but the second-hand car business has been ignored by us. We hope that you will pay attention to the second-hand car delivery ceremony. From the data, our entire new car sales As sales continue to decline, used car sales continue to rise. Only by providing more and more refined services can we make used cars better and better.

This is publicity. We use WeChat. Of course, many people may have used this method. It does not cost money and can be adopted quickly. We make high-quality cars into a WeChat grid. After sending it out, from From previous experience, the response is very fast. And there is another advantage, the target is very accurate, because they are all in the circle of friends, they will ask you immediately, and the information will be returned to the used car department immediately.

After we have finished talking about these practices, what supports us to do these things? That is the manufacturer's policy. SAIC Volkswagen provides some policy support to dealers, including two years of no interest and three years of low interest, as well as replacement subsidies, which can reach a maximum of 10,000 yuan for all models. There are also official certifications and original long-term warranty. These three conditions are the backers of collecting the car at a high price. Where does our confidence come from? It depends more on the manufacturer's policy to do this.

What did Zhongcheng do? RSE methods and tools are integrated into second-hand cars based on the content of new car sales. There are indicators that second-hand cars pay more attention to. There are several points worth considering for our second-hand cars. The first is customer source management. Customer source management includes clue management, On-site reception. Potential resource management: prospect follow-up, demand analysis, objection handling, defeat management, and dormant customer management. Team management: Weakness identification, weakness coaching, weakness improvement, key customer management. Goal management: goal setting, goal decomposition, and goal achievement.

This is our daily statistical table under normal circumstances. This is the improvement plan, which is the adjustment of our company's goals from the third quarter to the fourth quarter of this year. It involves the collection of evaluation leads, the evaluation of sales consultants and the assessment of replacement targets, as well as a return visit to the later satisfaction and content. , involves three contents, and I will briefly introduce them to you here.

Making second-hand cars, after so many years, it is getting better and better. How to keep it going? What is our mentality? Craftsmanship. Quoted from "The Way of Programmers' Training": "We who are quarrying stones should have the vision of a cathedral. All projects have room to display talents." I hope this sentence is given to all second-hand car people, There are many ways to go in this industry. I hope that the used car industry will be better and more professional than new cars in the future. This is the wish of second-hand car owners.

Finally, on behalf of Hebei Zhongcheng, I welcome all friends to learn and improve together. I also welcome you to Hebei Zhongcheng for further discussion. Thank you!