Unless it’s your first month in the car business, you know how stressful the end of the month can be. Realizing that we did this to ourselves as an industry is a topic for another day, but regardless we must deal with all that is thrown at us during the last few days of every month.
So, what is going on that causes us to run around and behave much like 5 year old kids on a sugar binge at a Chuck E. Cheese birthday party?
- Factory objectives: Yes, our good old friends at the factory gave us a number to hit and we’ll be up the creek if we don’t figure out a way to get cars in driveways. We’re naturally achievers and instinctively go for any goal put in front of us, much like my dog will naturally chase after anything he sees me throw in the backyard. Pavlovian? Sure.
- The financial statement: Oh yeah, we’re supposed to make money at this thing we call a car dealership. Meeting with the controller throughout the month, tracking the cash flow and likely outcome of the financials can be sobering to say the least. As the last few days come about, every department is analyzed with a microscope, making sure every last drop of revenue is squeezed out. Did we get all the manufacturer’s sales incentives paid? How about warranty claims? And our accounts receivable? Where are the expenses going to land? Anything we can prepay or amortize to smooth the curve?
- Commissioned employees: It would be ideal if they realized that the first day of the month is as important as the last day, but unfortunately many do not. If we’re tracking and coaching them throughout the month, we may be able to mitigate some of this stress, but it’s more than likely that the employee figured out at some point that they weren’t going to make the check they thought they were and finally decided to get their rear in gear, so to speak. This collective energy/behavior definitely amps up the stress level of the store.
- Vendors: This does not mean ALL vendors, but rather some. I’ve never understood why I get calls and/or “pop-in” visits from vendors around the end of the month. They (seemingly) know what’s going on, so why in the world would they want to come by or try to get me on the phone? Some will even lead with “I know you’re busy with the end of the month, but I just need a moment of your time” speech! Maybe they have an objective too (which is fine), but I’m not likely to buy anything new at the end of the month anyway. In fact, if they’re persistent or pushy at this time, it guarantees I won’t buy from them when the schedule lightens up a bit.
- Customers/Guests: Yes, the very reason we have revenue can be a stressor as well. Perhaps it’s because there is so much other stress at the same time, but resolving customer concerns (and there is always someone that needs assistance) and making sure they stay customers is not an easy task. Or maybe they know what day of the month it is and decide to pounce when they feel we’re weakest! Who knows, but they must be handled in a friendly, professional way or we risk losing them forever.
So, how do I cope with all of this?
- Plan: This has to be done well ahead of time, but what are the goals we set for the month? I feel less stressed when I know the targets and metrics we’re shooting for. Sales, gross, net, etc. can all be forecasted and revised throughout. When you’re on target, just keep going. If you’re off, concentrate on those elements to get the most out of every day.
- Mindset: What is your state of mind when you get to the office in the morning? Positive and uplifting or negative and dismissive? The phrase “like attracts like” is applicable here. Keeping things as positive as possible when times get tough is a sign of maturity and leadership. Think about it: when someone “blows up,” whether at another person or about a situation, does it make the scene more or less stressful?
- Exercise: Get your blood moving! It doesn’t matter what form you get, exercise has been shown to reduce stress and anxiety. I get 20-30 minutes per day, 5 or 6 days per week, depending on my schedule. I like to do it first thing in the morning and get my day started off right. Others like to get it in during lunch or after work as a de-stressing tool. Any way you get it is a good way, in my opinion.
- Meditation: It took me a long time to start doing this, but I’m so glad I did. For years I thought meditation was too “woo-woo” for me. It wasn’t until a family member that I really respect and look up to told me about his practice that I really started researching and practicing it. And it’s not like it has to take a long time. I do maybe 10 or 15 minutes a day after my workout and feel like both my mind and body are ready to attack the day.
- Diet: Some may disagree, but I think food is fuel. The things you put in your body are going to have an effect on your day and your stress level. That said, I don’t think there is one “perfect” diet for everyone, rather it needs to be tailored to you individually. My wife and I don’t have the same dietary needs, so we don’t eat a lot of the same things. Find what works for you (avoid things that make you sluggish and bulk up on things that give you energy) and stick with it.
I don’t think the end of the month routine will ever go away in the car business. It’s just sort of there, so we might as well figure out the best way to deal with it!
What ways do you cope at the end of the month? Any tricks that work for you? I’m really interested in hearing your feedback.
Make it a great day!
Dan
