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Chapter 6: Manufacturer-Dealership Relationship These actions do not exist in a vacuum. When you cut any one of them, it affects all of the others. And every one of them hurts the consumer. Cutting People Regrettably, this is one of the easiest ways for management to improve the bottom line: cut people, eliminating their salaries. Unfortunately, having fewer competent salespeople and technicians just aggravates the problems that led to the dealer’s financial trouble in the first place. It addresses only the immediate symptom-lack of money-instead of solving the underlying reasons why there is no money. Cutting Pay Reducing the salaries of the people who do all the work is just another shortsighted way to address the symptom instead of the real problems. People who get paid less do not tend to focus on improving their job performance. Slashing Quality Budgets At the heart of any company’s lack of success is the lack of quality throughout the organization.5 The measure of quality is not limited to physical products. It includes every service the organization delivers. Every automobile dealership provides just as much service as products. When dealerships start cutting quality, everything starts looking frayed around the edges. You find the car you want, but the salesman is rude. You buy a beautiful new car, but it is delivered filthy. You take your car in for an oil change, but must wait three days. All of these things are aspects of quality, and all of them are affected when the organization devotes insufficient resources to delivering quality service.

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