Are Conventions An Expense Or an Investment?
During the recent NADA convention in San Francisco, I learned that a general manager allowed the general sales manager of his dealership time off to attend the convention, but that was it. When he sent the GSM out the door, he said the expenses for the convention were the responsibility of the attendee, not the store. As I listened, I tried to wrap my mind around the situation: This was a company employee, attending an industry event, representing the dealership, attending presentations that will streamline processes and increase productivity for the dealership, yet the employee had to pay all the expenses. This does not make good business sense to me.
I must admit that it not only caught me off guard, but it also made me wonder what the general manager was thinking. Why wasn’t he attending the convention himself?
The automobile industry has only one major event a year. It brings most players together for a brief four-day period — two of which are on a weekend. The attendees have an opportunity to view what is new, what is on the drawing boards, and to learn what to prepare for in the coming year. They meet manufacturer representatives during the receptions, which creates an opportunity to build relationships to strengthen the ties between the dealership and the manufacturer. These relationships can be instrumental in resolving a plethora of issues that arise during the year. People conduct business with those they know, like and trust; it’s human nature. Knowing each other goes a long way in finding solutions to situations.
While walking the halls between the official presentations, attendees can meet peers and discuss best business practices and, most importantly, chat about what is bringing customers through the showroom doors. We have all heard about how slow floor traffic has been lately. We cannot simply stay in our offices and expect customers to discover us. We need to advertise, prospect, and educate our personnel in order to succeed.
Trial by fire is not the best use of resources or personnel. Only with open dialogue can solutions be discovered. The best ideas are illuminated when a group of three or four peers are standing around, eating shrimp, and discussing what is working and what is not.
Who does this activity benefit? Does the attendee gain more than the dealership? I think dealerships stand to benefit significantly, especially when attendees share their experience with others. One idea can change the world. One implemented idea can save a business. One idea that is shared and nurtured can feed many, just like one pebble can cause ripples across an entire pond. Because of the ripple effect, it is my belief that the business gains more than the attendee.
I was taught that when a business benefits from employee participation in an event, the business should pick up the expenses. More importantly, NADA is an association of dealers, and for any association to be effective it requires participation from membership.
This was my 23rd year attending the NADA convention, and I have seen major changes in convention attendees over the years. It seems as if every year fewer dealers attend. There was a time when the dealer badge was worn by dealer principles only. Now, an educator, a department manager or even a spouse, can wear the badge.
I can see why some dealer principals would not want to attend the convention. Dealers understandably do not like walking through the hall being hounded by vendors. Nobody enjoys navigating through a hall of carnival barkers while being chased down the aisle by some model or temporary hired help, but that is not all there is to the story.
A vendor’s point of view
From the vendors’ view, booth space is a sizable investment and we only have a short time to tell our story. We all attend in hopes of finding new business opportunities, renewing ties with current clients, and moving our businesses forward.
For the dealers and general managers who were present, thank you for attending. You are the reason we all show up. Our businesses cannot move forward unless dealership business moves with us. Each vendor you see, and each one you do business with, has a vested interest in the individual dealership’s success. We are a team; we are partners on the road to success. We need each other as we meet new challenges and discover new solutions.
I invite you to budget for NADA 2009. Plan to attend. Participate in the education sessions, visit the exhibit hall and attend the evening gatherings. It is four days of meeting, greeting and exchanging ideas that will assist your store in meeting the challenges of the future.
Next year the convention is in New Orleans. Have you made your hotel reservations yet? I have, and Kelly Enterprises will be in a booth sharing ideas and educational opportunities. And if you are wondering, yes, I do pay my employees’ expenses during convention – door to door. How about you?
Dealer Marketing, March 2008 issue, P. 44