R+E=O from Success Principles for Dealers

by Jess Lee June 2nd, 2020

Do you know the R + E = O equation from the Success Principles?

Here’s a story of a Lexus dealership in SoCal:

When war in the Middle East broke out, people stopped coming in to buy Lexuses.

The owner and his sales team knew that if they didn’t change their response (R) to the event (E) of nobody coming into the showroom, they were going to slowly go out of business.

Their normal response (R) would have been to continue placing ads in the newspaper and on the radio...

But that wasn’t working.

The outcome (O) they were getting was a steady decline in sales.

So they tried a number of new things (R). The one that worked was driving a fleet of new cars out to where rich people were — the country clubs, marinas, parties in Beverly Hills and inviting them to take a spin in a new Lexus.

After test driving the new car, a high percentage of people bought or leased Lexus.

The dealership had changed their response (R) to an unexpected event (E) -the war- until they got the outcome (O) increased sales that they wanted.

They actually ended up selling more cars per week than before the war broke out.

What is the unexpected event (E) that your dealership is facing now?

What is your new response (R)?

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