Pete’s Cheap Car Sales’ is a small second-hand car yard which buys cars at auction then organises road worthy certificates, cleans repairs and finally sales to individual customers and bulk or fleet purchasers. Due to retirement of sales superintendent and low car turnover rate the company is facing lower profit margin. The purpose of the report is to analyse the existing dilemma in the selling and purchasing system as well as the employee performance. Thereafter, the report is aimed to recommend the company about internal promotion in selling department and the car selling system.
Data collection and analysis
‘Pete’s Cheap Car Sales’ maintains a steady repair and maintenance service expenditure that does not have a significant amount of impact on the overall operational cost. However, there are some discrepancies in purchasing trends and selling price. The data is developed from the provided data chart from selling, purchasing and employee details.
Pete and Alan’s Stagnant Profit
The following table and graph describes the fleer car sell ratio and waiting time in yard. It has been found that fleet car selling causing less amount of time in car yard waiting.
Pete and Alan’s Stagnant Profit
In the next table and graph, the selling price and turnover time of the cars are compared. From this analysis it has been found that the price of the car is highly proportional to the car waiting time in the yard.
Pete and Alan’s sales staff
In following table and graph the employee performance of the sales department is presented. Individual car selling cause more profit for the ‘Pete’s Cheap Car Sales’. Therefore, the total car sales and the ratio of fleet car sell and the private or individual car sell are presented to monitor the performance level.
As a care retailer company ‘Pete’s Cheap Car Sales’ should take care of their investment in purchasing phase and the maintenance phase before making the resultant price of the cars. From the analysis it has been found that fleet car selling causing less amount of time in car yard waiting. Hence, it can be said that the individual or private car selling is requiring more waiting time in care yard. Therefore, changing in sales focus can alter the situation of the turnover rate. At the same time, it is also found that the price of the car is highly proportional to the car waiting time in the yard.
That means the selling price of the care has huge impact on the waiting time. The higher car price is taking greater turnover time, however lower car price is taking less turnover time. Therefore, from this report it can be said that changing the price of the car can have high impact on the waiting time. Therefore it is clear the major regulators of the car waiting time of ‘Pete’s Cheap Car Sales’ is the price of the care and the type of selling which indicates either private or individual customer or bulk selling.
From the data analysis of employee performance it is clear that each of individual employee in sales department has specific skill of selling. On the other hand, some of the skills are more beneficial for the company. It has been found that Jules SALES003 has sold the higher number of cars where most of them were sold to the private customers. On the other hand, Lex SALES001 has moderate selling capability, however the number of total sales to private customer is highest. Anna SALES004 has least skill among three of them.
Concluding Summery
From the analysis, findings and discussion it is clear that there are some discrepancies in purchasing trends and selling price. It has been found that clear the major regulators of the car waiting time of ‘Pete’s Cheap Car Sales’ is the price of the care and the type of selling which indicates either private or individual customer or bulk selling. At the same time, employees of sales department need a leader to guide. Jule has sold the higher number of cars, where for Lex the number of total sales to private customer is highest.
Recommendation
Anitha, J., 2014. Determinants of employee engagement and their impact on employee performance. International journal of productivity and performance management, 63(3), p.308.
Cachon, G.P., Gallino, S. and Olivares, M., 2018. Does adding inventory increase sales? evidence of a scarcity effect in us automobile dealerships. Management Science.
Copeland, A. and Kahn, J., 2013. The Production Impact of “Cash?for?Clunkers”: Implications for Stabilization Policy. Economic Inquiry, 51(1), pp.288-303.
Hsu, J.T. and Hsu, L.F., 2013. Two EPQ models with imperfect production processes, inspection errors, planned backorders, and sales returns. Computers & Industrial Engineering, 64(1), pp.389-402.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns, R., O’Leary, P., Robinson, J. and Plimmer, G., 2015. Managing employee performance & reward: Concepts, practices, strategies. Cambridge University Press.
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