The “Existing but Underperforming Commercial Department”
(Some Staff, Some Inventory, Some Accounts — But Low Profitability and No Scalability)
These dealerships already have an underperforming commercial department, but they aren’t hitting their potential. They may have staff, inventory, and upfitter relationships, yet still lack the systems, KPIs, and leadership discipline required for long-term success.
Common Characteristics:
- 1–3 commercial reps, often not producing consistently in their underperforming commercial department.
- Inventory spends too much time aging, hurting floorplan profitability.
- Processes are unclear or vary from salesperson to salesperson within the underperforming commercial department.
- Weak account acquisition — mainly relying on repeat business only.
- No consistent KPI reporting or month-to-month accountability.
- The department produces volume but not a predictable profit.
- Fixed Ops is not integrated into the commercial strategy (huge missed revenue).
Risk:
Leadership gets frustrated because the department feels like an expense rather than a profit center, highlighting the risks of having an underperforming commercial department.
Opportunity:
These departments can become top performers with refined:
- inventory plans
- prospecting systems
- government sales processes
- delivery and follow-up SOPs
- KPI dashboards
- Fixed Ops integration models
- correct staffing structure
A structured commercial framework transforms this department from “surviving” to scaling.
