AutoSuccess Aug03


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AutoSuccess addresses the specific, researched needs of new car and light truck dealerships by providing entrepreneurial, cutting-edge, solution-based editorials to increase dealership profits and reduce expenses

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AutoSuccess Aug03

  1. 1. “Golf swings begin and end in the mind.” pg.8 .biz August 2003Don ElliottAuctions Make the Market How to Hire the Best Person for the Job Back to the Basics of Advertising PERMIT NO 879 LOUISVILLE KY You Can Be a Top Performer PAID Louisville, KY 40202 Managers Evaluation: US POSTAGE PRSRT STD Suite 202 756 South 1st Street Successful Leadership, Part 1
  2. 2. ZIEGLER ASKS… Ziegler Supersystems, Inc…a 20-year history as the most successful, hands-on, in-dealership automotive consulting firm in the entire universe. A class act with a real-world approach, Ziegler has the most impressive credentials and the best rock- solid success track record in the industry. SALES MANAGER FORUM: Motivating your Sales Team to Higher ProfitabilityReputable…currently working with hundreds of the most suc- Taught By James A. Zieglercessful dealerships and dealer groups in the country. Our programs Atlanta, GA Aug 12 - 13 Chicago, IL Aug 19 - 20are profitable, ethical, and we always get the job done. Las Vegas, NV Sept 16 - 17 Atlanta, GA Oct 7 - 8Over the last 20 years thousands of dealer principals, Atlanta, GA Nov 11 - 12managers, allied industry representatives and factory executives Atlanta, GA Dec 9 - 10have attended Ziegler’s seminars on Sales, Sales Management, THE COMPLETE F&Iand F&I Menu training. MENU SELLING SYSTEM Present 100% of your products 100% of the time! Taught By Becky Chernek Sponsored By Jim Ziegler & Ziegler Supersystems, Inc.Ziegler has the best trainers…the best in-dealership Virginia Beach, VA Aug 12 - 14programs, the strongest, longest lasting results and the best man- Atlanta, GA Sept 16 - 18agement seminars. Our stuff works in any size market or dealership. Kansas City, MO Oct 14 - 16 San Antonio, TX Nov 11 - 13 Las Vegas, NV Dec 9 - 11Visit our Web site and seriously check us out. Call all ofour references and check out our competitors. Not justthe few selected references they’ll give you, but checkit all out thoroughly. Make a hundred calls.Go ahead “knock yourself out!”We can stand the scrutiny and most of our com-petitors would be hard-pressed to back up theirclaims with real numbers in real dealerships likewe do. If you’re not doing at least $2,800 a car, Stop listening to excuses and make the call right now! T IMSAOTEL T HE UL ES I NA PROF S ALES Series eo Vid oday! Call T 0-90471-800-610-9047 -61 1-800
  3. 3. manager I N S I D E driventeam operation uccessrevenue automobil 4 Eliminate Enemies of Success and Happiness solutions Brian Tracy 5 The Hustle David Thomas 6 How to Hire the Best Person for the Job Pam Holloway profitprofessional 7 No Stress Selling Fran Taylor 8 Don’t Hit It at the Target Brian Manzella sales10 Recruiting Better Sales People Tony Ray Munson11 Back to the Basics of Advertising Rob Mudd12 Is Your Life Dying From Making a Living Leo Weidner13 You Can Be a Top Performer Mark Tewart14 The New Guy: Action Plan Steve Hiatt16 Auctions Make the Market Don Elliott18 Nuisance Charges Jeff Blackey19 Maximize Your Opportunities With Credit-Challenged Customers Kevin Smith20 Auto Technician’s Income Advantages Ryan Tithof21 The Return on Your Investment With Good Security Bernard Boule22 Managers Evaluation: Successful Leadership, Part 1 Joe Verde26 Customer Development Center vs. Sales Person Development Center Terry L. Isaac27 Tremendous Increase In Increments of One Timothy Gilbert A cure won’t just save children. Mary Tyler Moore It will save childhoods. International Chairman These kids live with 4-6 insulin injections daily. Plus, they face the threat of blindness, heart attack, kidney failure and amputation. Their only hope is research. The Juvenile Diabetes Research Foundation is closer than ever to finding a cure. Help us help them. Call 1.800.533.CURE or visit dedicated to finding a cure inventory Patrick Luck, Editor & Publisher Success Driven Solutions • Susan Goodman, VP of Operations • Lindsay Porter, Copy Editor 756 South 1st Street, Suite 202 • Louisville, Kentucky 40202 Amy Stuber, Advertising Services Mgr. • Toll Free: 877.818.6620 Jeffrey Kemelgor, Advertising Services • Facsimile: 502.588.3170 Thomas Williams, Creative Director dealer God Bless America Web: • thomas@autosuccess.bizAutoSuccess Magazine is published monthly at 756 South First Street, Suite 202, Louisville, Kentucky, 40202; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 Subscription rate is $75 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorialsand graphics are subject to editing for grammar, content, and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; viewsexpressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccessmay occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA.Postmaster: Send address changes to AutoSuccess Magazine, 756 South First Street, Suite 202, Louisville, Kentucky 40202.
  4. 4. leadership solution BrianBrian Tracy By Tracy Eliminate Enemies of Success and Happiness The greatest sometimes in a matter of minutes or even that sounds good, even though you enemies of success seconds. know that you were an active agent in and happiness are whatever occurred. You often create negative emotions. Stop justifying. complex ways of putting yourself in the Negative emotions The first of the four root causes of right by explaining that your behavior hold you down, negative emotions is justification. You was really quite acceptable, all thingstire you out and take away all your joy can be negative only as long as you can considered. Rationalization keeps yourin life. Negative emotions, from the justify to yourself and others that you negative emotions alive. Rationalizationbeginning of time, have done more harm are entitled to be angry or upset for some and justification always require that youto individuals and societies than all the reason. This is why angry people are make someone or something else theplagues of history. continually explaining and elaborating source or cause of your problem. You cast on the reasons for their negative feelings. yourself in the role of the victim, and youOne of your most important goals, if you However, if you cannot justify your make the other person or organizationwant to be truly happy and successful, is negativity, you cannot be angry. into the oppressor or the ‘bad guy’.to free yourself from negative emotions.Fortunately, you can do this if you learn Refuse to Rise above the opinions of The negative emotions of fear, rationalize and make excuses. The third cause of negative emotionsself-pity, envy, jealousy, inferiority The second cause of negative emotions is an over concern or a hypersensitivityand anger are mostly caused by four is rationalization. When you rationalize, about the way other people treat you. Forfactors. Once you identify and remove you attempt to give a ‘socially acceptable some people, their entire self-image isthese factors from your thinking, your explanation for an otherwise socially determined by the way other people speaknegative emotions stop automatically. unacceptable act’. You rationalize to to them, talk to or about them, or look atWhen your negative emotions stop, the explain away or put a favorable light on them. They have little sense of personalpositive emotions of love, peace, joy and something that you have done that you value or self-worth apart from theenthusiasm flow in to replace them, and feel bad or unhappy about. You excuse opinions of others. If those opinions areyour whole life changes for the better, your actions by creating an explanation negative for any reason, real or imagined, the ‘victim’ immediately experiences anger, embarrassment, shame, feelings of inferiority, depression, self-pity and/or PROFIT...FROM despair. This explains why psychologists say that almost everything you do is to YOUR earn the respect of others or at least to avoid losing their respect. ARCHITECTURE Realize that no one else is responsible. Over 300 new and renovated The fourth cause of negative emotions, dealerships designed across and the worst of all, is blaming. Imagine USA and Canada negative emotion as a tree. The trunk of On-site Facility Design the tree is the propensity to blame other people for your problems. Once you cut Surveying down the trunk of the tree, all the fruits of Feasibility Studies the tree (all the other negative emotions) Inclusive Design Meetings with die immediately, just as the lights go out management team instantly when you jerk the plug out of Increased CSI scores and profit the socket that lights up the bulbs on a per transaction Christmas tree. The antidote for negative Consulting to local emotions is for you to accept complete responsibility for your situation. You architects and cannot say the words, ‘I am responsible’ contractors and still feel angry. The very act of Design - Build accepting responsibility short-circuits Services and cancels out any negative emotions a praxis3 company you may be experiencing. 866.856.6791 Brian Tracy is the Chairman & CEO of Brian Tracy International. He can be contacted at 858.481.2977, or by email at, or visit 4
  5. 5. sales tips with David Thomas DavidByThomas David Thomas The Hustle What does it take best car sales people on the planet. He • Hustle is getting the order, because to be really great went from sales person…to manager…to you got there first or stayed with it in car sales? That’s dealer…to dealer group owner in 15 after everyone gave up. the million-dollar fast years. He was a huge motivator and • Hustle is shoe leather and elbow question everyone teacher to all and inspired many associates grease and sweat and missing lunch.wants to know. to reach new heights. His philosophy was • Hustle is getting prospects to say simple. Robert’s reason for living was ‘yes’ after they’ve said ‘no’ twentyIs it detailed product knowledge? Yes. God, family and selling cars, in that order. times.Is it a professional appearance? Yes. Is it He was great at all three. • Hustle is doing more unto a customeran outgoing personality? Yes. Is it your than the other guy is doing unto Yes. Is it your product? Yes. Is Robert died in a plane crash on the way • Hustle is believing in yourself andit your location? Yes. Is it your dealer’s back from a dealer meeting in Las Vegas. the business you’re in.reputation? Yes. I think about him and the hustle often and • Hustle is the sheer joy of winning. see if I am living up to his expectations. • Hustle is being the sorest loser inAll of these contribute to your success. He died a winner in life and in sales. I hope town.But, if you really want to know, there I can say the same. Examine yourself and • Hustle is hating to take a vacation,is one magic ingredient that will make see if you have the hustle. because you might miss a piece of theor break you: ‘the hustle’. It is the action.difference between selling five a month The following exemplifies what Robert • Hustle is heaven if you’re a hustler.or 20 a month. It is the difference between was all about. This was printed in the • Hustle is hell if you’re not.making a paycheck or a great living. It is eulogy at Robert’s funeral. HG’88the difference between a great career anda job. What is hustle? David Thomas is the Owner of West • Hustle is doing something that Texas Nissan in Odessa, TX. He can beRobert Fry was a great friend and mentor everyone is absolutely certain can’t be contacted at 866.429.6803, or by emailto me for many years. He was one of the done. at HOW TO EASILY SELL MORE VEHICLES FOR MORE GROSS PROFIT THIS MONTH! Tewart Enterprises Inc. offers the most advanced, results oriented, college-level, custom training available today. We guarantee an increase in sales and gross profit or your money will be refunded! WE OFFER THE FOLLOWING TRAINING: Management Phone Skills Basic Sales Negotiating/Closing/Desking Advanced Sales Customer Service Let our clients tell you what they think! P.S. FREE Newsletter! Go to & click on newsletter. For FREE Consultation: 866.429.6844 or 513.932.9526august 2003 5
  6. 6. leadership solution Pam Holloway By Pam Holloway How to Hire the Best Person for the Job Consider this, a candidate for a sales position. “Tell me 3. What strategies do you use to any question a about a time when you had to work repeat the customer’s key concepts job applicant can under stress.” In order to answer this, back to him/her during your sales answer ‘yes’ or the applicant must go back in his/her presentation? ‘no’ to probably memory and relive the experience. If he/ 4. Tell me about a time when youwon’t give you quality information. she shows signs of reliving the stress, you overcame your own mental block orBehavioral-based questions, on the other know immediately that this is a person prejudices to make a sale.hand, provide you with key information who might not work well under pressure. 5. Tell me about a sales incentiveon how well the person is likely to If the applicant shows any emotion at all program that motivated you.perform the job. in answer to that question, it indicates 6. How do you try to show each that he/she has difficulty shrugging off customer that he/she is important?These questions begin with something emotion. Thus, he/she might not handle 7. Tell me about your worst customerlike, “Tell me about a time when...” or rejection well. dilemma and how you overcame it?“Describe how you...” Why are theyeffective? Because, behavioral questions Sample behavior-based interview questions: Adaptability:are based on a simple, yet powerful General: 1. Tell me about a time when youpremise – the best predictor of future 1. What did (or do) you enjoy most worked effectively under pressure.behavior is past behavior. about your last (or present) job? 2. Tell me about a time when you had 2. What did (or do) you enjoy least to adjust your working style in orderIf you remained cool under pressure in about your last (or present) job? to achieve your objectives.a difficult situation in the past, there’s a 3. How has your previous experience 3. Give an example of a situationgood chance you’ll react the same way equipped you for this job? in which you failed, and how youwhen you face one in the future. If you 4. Why did you leave your last job handled it.were able to change an angry customer (or why do you want to leave yourinto a happy customer in the past, present job)? Decision-making & problem solving:chances are you will use that skill and 5. Of all the work you have done, 1. Tell me about a difficult decisionrepeat that behavior in the future. where have you been the most you had to make. What made it successful? difficult? What did you learn?Rather than asking a job applicant 6. What can you do for us that 2. Tell me about a time when youdirectly if he/she has a particular skill someone else cannot? had to make a decision without allor trait (to which he/she would almost 7. How can we best reward you for the information you needed. Howassuredly answer ‘yes’), in behavioral doing a good job? did you handle it?interviewing, you ask applicants to 8. What kind of supervisor is likelytell you of a specific time when they to get the best performance out of Communication:demonstrated the particular skill or trait you? 1. Tell me about a time when youyou’re looking for or when they dealt 9. What would your greatest did your best to resolve a customerwith the kind of situations that occur in business champion say about you? or client concern and the person stillyour business. 10. What would your greatest wasn’t satisfied. What did you do? adversary say about you? 2. Tell me about a time when youThe best behavioral questions will help 11. What was the biggest success of lost (or won) an important contractyou elicit these three critical pieces of your career? or sale.information: 12. What is the one thing that you 3. Relate a personal story in which 1. The situation or task – What was it would have done differently in your you persuaded someone to do they needed to accomplish? career? something that initially did not 2. Action taken – What did they do? 13. Describe the best person you ever appeal to them. 3. Results achieved – What worked for or who worked for you? happened? What were the results? Goal setting: SpeciÞc skill: 1. Give me an example of anYou can also use behavioral questions to 1. Tell me about a time when you important goal that you set, and telluncover ‘red flags’ – something about the demonstrated __________ skill. me how you reached it.applicant that may make them a bad fit 2. What steps did you take? Whatfor the job. Listen closely to how people Sales: obstacles did you encounter? Howdescribe their thoughts and actions in 1. Show me how you would sell me did you overcome the obstacles?specific situations. Look for behavior on our product or service. 3. Tell me about a goal that you setthat you wouldn’t want duplicated. 2. What strategies do you employ that you did not reach. What steps for finding common ground with did you take? What obstacles didFor example, let’s say you’re interviewing customers? you encounter? continued on page 28 6
  7. 7. sales and training solution Fran Fran Taylor By Taylor No Stress Selling Stress comes from Here are a few ways to incoming calls a day, and get on the not selling cars eliminate stress in automotive sales. phone until you have a minimum of one and not doing the Have written goals. How many cars confirmed appointment a day. Go out right things on a do you want to sell, and how much and prospect every day, and hand out daily basis. It’s commission do you want to make on cards with a $100 referral on the back. your choice to be each vehicle sold? That’s 4.76 per (Check the laws, and make sure this issuccessful. It’s your choice to sell a lot week if you want to deliver 20 a month. legal in your state.) Stick with this dailyof cars and make a lot of money or just Your goal should be to sell at least one plan, and you will sell more cars.simply get by. car a day. You need at least one to two When you have a qualified customer, slow down to go fast. Be excited on your meet and greet. Make a million dollar presentation. Go on a long demo ride, and get the people to like you and the vehicle. If you go on a short demo and try to sell a $25,000 vehicle going only five miles, that’s stress. There is no value built on that demo ride, and you are selling price alone. There goes gross, which equals stress. When you come back from a demo, do a walk-through of the service department before you write-up your customer. Sell yourself with an, ‘I come free with the deal’ attitude. Customers love the service walk and like you better, because you show you care. Stress comes from shortcutting the steps of a sale and thinking you can make big money. Discipline yourself to form a daily routine to make appointments, take ups, take incoming calls, have goals and not shortcut the steps of a sale. That means less stress, because you will become more successful than the sales people with no plan. This is more fun, because you stay busy compared to sales people just waiting for ups. If there are seven sales people waiting outside a dealership. Who gets the up out of the seven? Is it the fastest guy? Does it depend on what type of car pulls up? That is stressful. Go make it happen. Have a plan every single day, and stick to it. Your stress will virtually disappear. It’s your choice. Make that choice today; it will affect you and others you care about in a positive way, because you are doing what is right. You will have more fun and make more money with a plan. And, most of all, you will eliminate stress. Fran Taylor is the President and CEO of Taylor Techniques, Inc. He can be contacted at 866.873.0041, or by email at 2003 7
  8. 8. golf tips Brian By Brian Manzella Manzella Don’t Hit It at the Target Let’s start with the closes to the target as the club swings hit the outside of the back of the ball to single most basic to the finish. For a dead straight shot to start the ball left and ‘play’ their slice. element of making occur, the clubface contacts the inside- the ball go toward back of the ball with the face slightly picture 2 the target. Where open and carries the ball with it fordoes the clubface have to be at impact to almost an inch. The ball rebounds off themake the ball go straight to the flag? The clubface when the face is square (picturequick and easy response is square, but 2). The ball flies straight at the targetjust as it looks like the sun rotates around while the clubface closes as the golferthe earth, it is an illusion. swings to the finish.The golf club is made of metal or another There are two more points to consider:very hard surface. It is traveling, even for because the clubhead starts the swingaverage players, near or more than 100 on or near the ground, it also goes up asmph with a driver. The ball is made of it goes back. Additionally, because thea synthetic, rubber-like substance that golfer stands to the side of the ball, theis elastic. When they collide, the ball clubhead also goes in toward the golferdeforms on the face of the club and is as it moves away from address. Thiscarried along by the speeding clubhead means that from the top of the swingfor nearly an inch (picture 1). When the back down to the swing’s lowest pointball separates from the clubface, the (when the clubface would be square,clubface is nearly always in a different normally), the clubhead is travelingalignment with the target than it was at downward and outward toward theimpact. inside back of the ball. The only reason anyone slices the ball is because the clubface is too open atSo, for the ball to go straight at the target, This all gives us the recipe for perfect impact and still too open when the ballthe face must be square at separation. The contact with the ball and straight-away takes off from the face. These golfersgolf swing is circular. Since the clubface ball flight. The clubhead is moving need to learn to open the clubface lessnormally opens as the club swings away downward, outward and forward toward on the backswing and close it more onfrom the ball and closes toward square impact, which occurs on the inside back the downswing. It is helpful to rememberas the clubhead approaches the ball, then of the ball with the face still open and to turn the entire left arm closed throughthe clubface must be open at impact for the clubhead still moving downward and impact until the clubface is pointing at ora straight shot. outward. You hit the ball down and out, near the ground well past the ball. If the not toward the target. slicers do this in concert with openingHow open? About three degrees, which the clubface less on the backswing, theyis visually noticeable. All of this means No matter the shot, you should look at too can hit the inside-aft quadrant ofthat the clubhead will have to contact this area of the ball, and hit down on the ball on the way down and out withthe inside of the back of the ball with it—every shot you ever hit—for the rest fantastic results.the clubface slightly open. This impact of your life.alignment influences every single Contrary to popular opinion, musclescomponent of the golf swing. If you slice, and most golfers do, and don’t have any memory. Golf swings the only thing from this article you tried begin and end in the mind. Start applyingLet’s review: the clubface opens to the to incorporate at the range was hitting this month’s information in your as the clubhead swings away the inside of the ball on the way down, A famous teacher from long ago, Alexfrom the ball. The clubface closes on the you might hit the ball farther right. Most Morrison, used to correctly preachdownswing, at some point is square, then golfers need to come ‘over the top’ and “Better golf without practice.” But when you do start to practice hitting the inside picture 1 of the ball on the way down, remember to start slow and short and build to the longer swings. Brian Manzella is a PGA Teaching Professional. He can be contacted at 866.873.0036, or by email at, or visit 8
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  10. 10. leadership solution Tony RayTony Ray Munson By Munson Recruiting Better Sales People The best thing to Here are some rules for the interview: • What would cause you to leave a do while recruiting • Don’t oversell your company. particular company? is look for people • Ask tough questions. before you need • Avoid interruptions during the interview. Listen carefully to their answers. See them. Make a great • Focus on questions, and let them how well they communicate. Take notice advertisement that do the talking. if they can turn the interview around andshows what you are offering. Good people • Clearly explain the job description. start asking questions. This shows thatwill want to know why they should work • Don’t gossip (no war stories). they take control and investigate, whichfor you (excellent pay, benefits, five- • Take your time; be thorough. is what they will be doing with yourday workweek, demo, etc.). Display the • Let them know what to expect customers.advertisement in your service department from your dealership and youralso. Customers of yours might be management. And finally, look for personality andinterested or know someone that would attitude. You can give personality testsbe good. They are already sold on your Try to get them to talk 70 percent of the and run background and drug tests also.dealership. time. Here are a few questions to ask: Make sure you check all of the laws in • Why are you looking for another job? your state.Make sure to take enough time to • Why did you pick sales?do the hiring correctly. This means • Tell me about your last job. After you hire a great sales person, andinterviewing extensively, having more • What makes work meaningful to they are performing well, continue to helpthan one interview for the best people you? (Motivators) them, praise them for specific actions.and even having multiple people within • What do you like about work? Treat all your employees like a somebodythe dealership to do the other interviews. • What do you dislike about work? not a something.Verify all of the information and • If you had no limits what would Tony Ray Munson is the President ofreferences the applicant gives. Look at you do or be? (Dreams) Sales Systems International, Inc. Hewhy you might fire them before you even • What would cause you to join a can be contacted at 866.265.6575, orhire them. particular company? (Values) by email at Service Advisor Training All Skill Levels Presented by.... • Increase Customer Paid Labor Sales and Parts Sales. • Increase Customer Satisfaction Scores. • Increase Customer Retention. • Set up a Non-Confrontational Jeff Cowan Complete Selling System and Culture. • Learn to Sustain Growth. • Learn to Control Your Customers and your Workday. • Learn how to Walk Around Every I Will Turn Your Service Clerks Into SELLING Car, Every Time TM Service Advisors. We Deliver The Most Intense • Learn the Sit, Flip, Pop and Powerful Two Day Workshops You or Your Service Look TM Technique. Advisors Have Ever Experienced! • Become a “Full Service Promise” TM dealership. We Also Deliver Our World Class Training In- House On Your Service Drive or On DVD. We have In-house on your service recently re-recorded our DVD’s. They now offer drive, offsite or on DVD 40% More Content and are available in Spanish. ASK FOR SUSAN FOR YOUR FREE 866.265.5552 DEMO DISK - RESERVE YOUR SEATING TODAY! SPACES LIMITED 10
  11. 11. marketing solution RobByMudd Rob Mudd Back to the Basics of Advertising The elements of has to be present to make this plan work. You have many choices of advertising advertising that Offers can always change. You can mediums: broadcast television, cable, have been around change your creative message as needed. radio, newspaper, direct mail, Internet, for decades are The buying of your media is what needs billboards, etc. Deciphering all of these the same today. to be consistent and focused. choices to the one or two that will be Although creative effective for your dealership is wheremessages and mediums have evolved, This is where your dealership can get your advertising agency earns its keep.the principles of implementing your more bang for the buck. By effectively What you need to achieve, first andmessage to your market have stayed researching your history, you can greatly foremost, is dominance in one mediumprimarily the same. As a dealer, you need improve your future. and then move to the next. Find theto make sure that you remain consistent medium that is most efficient andwith the basics. “What are my best days of the week, remember, reach tells; frequency sells. best days of the month, best months There is no need to try to be everything1. Know your market. of the year?” By asking yourself these to everyone; you need to buy vertically.It is a simple but often overlooked questions, you can put your advertisingelement. You need to make sure you budget to work when it will be most 5. Evaluate the results.know where your strength lies in your effective. Keep a report card on your advertising.dealership relative to your market. “Does When you get your marks at the end ofmy store sell predominately used cars?” When determining your advertising each month, look over your numbers and“Am I a new truck dealer?” “Do I have a budget, do you allocate a specific dollar determine your cost per sales opportunitystrong secondary finance presence in my amount per vehicle, or do you look at (advertising dollars spent divided bymarket?” Having the knowledge of what a fixed percentage of your combined traffic count). How many dollars is ityour market needs and buys will save new and used variable gross? It is costing you to deliver a new or usedyour dealership money. advantageous to have your advertising unit? What percentage of gross profit budget be a fixed percentage of gross does that number represent? What weeksYou also need to know what your profit every month. By using this and days did you see spikes in traffic?potential is in your market. How many principle, your advertising expenditure What message and media were you usingpump-ins are coming in your area of never gets out of line with the inevitable when these numbers increased?responsibility? low grossing months. These five steps are the basic elements2. Plan your inventory. 4. Select an you need to follow for greaterHave inventory reflective of your effective media and dominate. effectiveness in your advertising.customer. Like all systems, you have to Buy vertically. There are two key factorsunderstand step one in order to move that will influence this decision: youron to step two. If you understand your market and your advertising budget. Itmarket, you know what type of vehicles would be great if you could dominate Rob Mudd is the Senior Vice Presidentyou need to have in your inventory mix. every medium. The truth of the matter of The Mudd Group. He can beFocus on advertising what is hot, and is that very few dealers have the budget contacted at 877.804.3485, or by emailpromote what is not. There is no need to to do this. at your advertising money on unitsthat are not going to bring in potentialcustomers. Advertise inventory that willcreate traffic.When it comes to your used inventory, SAY “THANK YOU”determine what were the top 10 newvehicles sold in your market last year, For just Peanuts!and concentrate on buying those vehicles Show your appreciation to your best sales,at auction. Whatever models were selling service and body shop customers, withoutlast year, will likely be the hot ticketagain this year. breaking the bank. Give them a gift of Fine Virginia Peanuts.3. Plan your advertising expenditures.A 90-day plan makes a difference.Planning your advertising placementat least 90 days in advance can help CLASSIC NUTS OF VIRGINIA LET US DO THE WORK . . . YOU GET THE CREDIT!eliminate last minute, knee-jerkreactions. Commitment, on your part, 866.873.0031august 2003 11
  12. 12. leadership solution Leo Weidner By Leo Weidner Is Your Life Dying From Making a Living In our money- matters most in your life first, i.e., “I put levels of success you must serve centered society, my spouse first, I exercise, I eat right, I yourself first. many people are spend quality and quantity time with my dying from making children, I love my work environment, 4. Family - my relationship with a living. Marriages I have spirituality in my life, I have my spouse and children. It has been are dying. hobbies I really enjoy, I serve and give to said, “No success (no matter howRelationships with children, health, others—my life is in balance.” great) can compensate for failurespirituality and overall enjoyment in life in the home.” Have face-to-face,are dying, all in the midst of ‘just trying True life balance meaningful conversations with yourto make a buck’. Stress is killing people. is all about relationships. spouse each evening before retiring.The big question is, “Is your life dying If you truly desire to make more money, Have a ‘date night’ with your spousefrom making a living?” reduce your stress and increase the every week. Take 20 minutes each balance in your life, the grand key is day to spend quality one-on-one timeYears ago while working with the great the quality of your relationships. To with each of your children.Napoleon Hill (author of Think and Grow achieve life balance, take care of yourRich), he taught me a very important most important relationships first. Try the 5. Social - my relationship withlesson. He said, “So many people focus following order: others. As you place relationships oneon making dollars to the exclusion through four first, you will find yourof their personal lives. If they would 1. Spiritual - my relationship with my relationships with your colleagues,just wrap their businesses around their Creator; the spiritual/philosophical. employees and customers improvepersonal lives, instead of the reverse, Spend quality time each morning dramatically. People will sense yourwhich most do, they would become far in meditation, prayer, reading aura, your energy and will be drawnmore productive, work fewer hours and inspirational material, etc. This will to you.enjoy their journey a whole lot more.” set you up for success in everything you do throughout the day. 6. Financial - my relationship withMany people have doubled and tripled money and my job. If you will taketheir incomes in relatively short periods 2. Emotional/intellectual - my care of, in order of priority, theof time. And, they didn’t have to work relationship with myself. Recharge five key relationships listed, yourdouble or triple the number of hours your emotional and intellectual relationship with money and yourto achieve these results; the grand key batteries. Keep a journal, read from job will be improved in ways thatto their success is the edge they gained a favorite book or study a foreign will astound you. Remember, if youthrough having life balance. language—keep growing emotionally keep your focus on relationships one and intellectually. through five, the money will take careMany feel the stress and do it anyway. of itself.You may be thinking, “I have stress every 3. Physical - my relationship with myday—it’s just the way it is—I deal with body. Take time every day (morning Attain life balance, and you will attain theit and push myself forward.” Years of is best) to exercise. Eat a healthy, life and career you’ve always dreamed of.feeling the stress and doing it anyway sensible diet.exact a heavy toll on marriages, families, Leo Weidner is the Chairman ofphysical and mental health. Numbers one through three are LifeBalance Institute. He can be essential to your success in every contacted at 866.429.6826, or by emailWrap your business/career other relationship and aspect of your at, or visitaround your personal life. life. In order to achieve the highest today’s bottom-line-focused businessworld, so many people, especially peoplein sales, wrap their personal lives aroundtheir businesses/careers. But those whowrap their businesses/careers aroundtheir personal lives, placing what matters CONSIDERING SELLING YOUR DEALERSHIP? • QUALIFIED BUYER 877.818.6620most at the center, experience a reductionin stress and an increase in productivityand personal income that are nothingshort of astounding. • PREFER IMPORT FRANCHISEBalance is not about time. • SELL WITH ZERO BROKER FEESpending ‘X’ amount of time with family • CONTACT PAT AT AUTOSUCCESS • 100% CONFIDENTIALand ‘X’ amount of time at work is notbalance. Balance is having the peace ofmind knowing that you are putting what 12
  13. 13. sales and training solution Mark Tewart By Mark Tewart You Can Be a Top Performer The difference Top performers doggedly pursue successful For the next 30 days, implement the 4D’s between getting habits. Watch your thoughts; they become of action management: dump it, delegate the results you your words. Watch your words; they it, defer it or do it. When anything comes want and being become your actions. Watch your actions; your way that requires a decision, ask average is action. they become your habits. Watch your yourself, which of the 4D’s would benefit To win more, is to habits; they become your character. Watch you most. If it doesn’t help grow you, yourfail more. Failing with reflection creates your character; it becomes your destiny. family, friends, business or happiness,education. The more action you take; the Be willing to dream and design your goals. don’t do it. Choose one of the other 4D’s.more money you make. When humans are Think bigger. It doesn’t take much more Some of the things that require action arein motion, they tend to be happier, more to produce a lot than it does to produce a better served being delegated to others. Ifproductive and constantly learning from little. Producing little, actually takes more you hate following up, and you are willingtheir actions. You can’t add or delete time. emotional and physical endurance. to admit to being lazy in that area, hireThat’s why the term ‘time management’ someone else who would be willing tois a misnomer. You can’t manage time; Starting this week, monitor your current do it and do it better. If you can’t affordyou can only take more action and better action with more processes than ever it, then group with others having the samemanage your actions in your time. before. Have a written, hourly game plan problem and share in the costs. There is using software or manual planners. Create always a way. When you defer items,Top performers must have the God given a strong focus for each hour that you write them down, and put a date on thetalent to succeed. Although great sales would like to accomplish. Next, create a item as to when you will make a definitivepeople are made not born, you can’t make to-do list, and write all the specific actions decision on this item and then put it in asomething from nothing. You can put you would take to accomplish your hourly visible folder that you have on the wall.make-up on a pig, but it’s still a pig. A goals. Prioritize your actions from ‘musttop performer has the following abilities: do’ to ‘why do’. If you write a review For the next 30 days, make a commitmentrelates to people, displays confidence, has each hour of what actions you have taken, to take massive action. Give more efforta high sense of urgency, gets people to say you will be amazed at how much time is than you have ever done before, andyes to their product or service, utilizes goals wasted. Twenty percent of your actions get monitor the results. Remember, it’s hardand rewards, has a commitment to learn, you eighty percent of your results. for good people to become great, but it’sand grows to become a top performer. If really easy for a good person to becomea person has the God given abilities that Everyone knows about to-do lists, but average.would relate well to the sales profession, have you ever created a stop doing list?they can begin to work on all their assets What good is writing actions in a to-doto become a top performer. Twenty-five list, if they don’t help you get results?percent of sales people account for fifty- Create a stop doing list, and at the end Mark Tewart is the President of Tewartseven percent of the sales. Seventy-five of each day, review your successes and Enterprises. He can be contactedpercent of the remaining sales people are failures, and write down the areas you will at 866.429.6844, or by email atpicking up crumbs. reduce or stop spending time in. 2003 13
  14. 14. sales and training solution SteveSteve Hiatt By Hiatt The New Guy: Action Plan Last month, to go about helping them develop those himself up and dust off before taking we covered the characteristics differently. the next customer. Knowing that pure processes of the enthusiasm can sustain you for the first hiring and initial With the struggling New Guy, we 90 days in sales, our challenge with training of our most have found that showing by example him is building sustainable work habits recent ‘New Guy’. combined with very constrained activity that both farm and hunt deals. In otherThe basics of the interviewing, hiring monitoring will determine whether words, prospect, follow-up and prospect,and training process were covered. we help him survive today, to build a but close as many walk-ins and phoneAround the same time, we also hired base for the future. We will do this by ups as possible in the meantime. In fact,another New Guy going through a very managing his activities: each up, phone that can help balance. Who doesn’t likesimilar process of training, although up, turn and write-up. In most stores, if the feeling of closing a prospect theirslightly different, due to him having you can’t handle the customer, you turn first time in? And who doesn’t like thesome sales experience at a nearby store. them. That works very well for some feeling of knowing you don’t have toNow, we will review both New Guys personality types but doesn’t provide get sunstroke or freeze while waiting forand the action plans developed for their the opportunity to watch and learn a an up, because your third referral of theindividual, continued success. professional handle the deal. If you are month was just sent in? a manager or a successful sales person,At this point, the rubber meets the road. the odds are that there was a mentor Action plan.The initial training is over and how early in your career that didn’t just tell Congratulate the successes. Let himthe New Guys react in real life, under you how to do things, but specifically know exactly what he is doing right.real pressure becomes paramount. This showed you. Don’t just give a vague pat on the backis where real character development but specific praise for specific activities,takes place and selling styles become a Action plan. habits and skills that are bringing results.blend of personality, drive, training and Provide hourly contact and management Focus on building the future. Make surediscipline. by the immediate sales manager. Waiting that selling cars today doesn’t shortcut until the end of the shift to recap won’t the skills and habits needed to surviveWhere the two New Guy’s results are help this talented person survive. Is there tomorrow. Work on prospecting plansnow, is exactly that, where they are someone in your store who needs more and skills. Schedule specific times fornow. Today doesn’t always indicate than a daily pulse taken to help ensure mail outs, phone calls and face-to-facetomorrow, but surviving today as a new their success? You need to get the scripts prospecting.sales person can make the financial that have been trained coming out ofdifference of being able to run a long the sales persons mouth so frequently, The key I remind myself and mydistance race. from practice, that they become natural managers of, in building successful responses in any given situation. people, is that we must work towardAt the time of writing this article, one of their strengths, and make them awareour New Guys is doing very well, and The New Guy that is doing well has of their weaknesses. Grow a person’sthe other is struggling. As management, things falling into place very quickly. talent, by matching skills and this point in their careers, we can Two of his successful qualities are Then help them recognize and avoidmake the biggest difference in the short- definitely ego and empathy. He really downfalls. If you build a lot of rapportand long-term results in many areas. cares enough to cut through the veneer and fail to use that rapport by closing,The characteristics we dug for in the of the customer, has enough ego to close then there are two obvious areas tointerviews are still there, we just have after repeated rejection, and can pick deal with. The solution may be linking questions to setting up a close. If a sales person can remember all the product knowledge but doesn’t relate it in a way that builds value, then there are two more areas to work on: yes questions and practicing presentations. Next month, we will deal with the results and ongoing training areas for both of the New Guys. Feel free to write or call with any questions or suggestions. Steve Hiatt is the General Sales Manager of Hiatt Pontiac GMC, Hiatt Outlet and Hiatt of Auburn. He can be contacted at 866.265.5616, or by email at 14
  15. 15. feature solution Don Elliott By Don Elliott Auctions Make the MarketIt happens every day at car dealerships title processing, transportation, and On the other hand, purchasing vehicles atjust like yours. Your sales person has dealer financing. In 2002, auctions in the auction is a proactive way to build useddone his/her job by landing the customer U. S. and Canada handled transactions car inventory with vehicles ‘targeted’on the right car, and the customer already valued at $81 billion, an indication that for your market, thereby maximizingsees it parked in his/her driveway. But the funds transfer process is an integral turns and gross profit. According tohow much can you put into the trade to part of taking your cars to the auction. the NADA Dealer Academy, auction-make the deal work? sourced vehicles yielded $1,511 gross The auction industry has also embraced profit per unit retailed last year, slightlyYou can check guidebooks, call your and implemented Internet technology to less than profits on street purchasesbuddy across town, look for similar allow dealers and remarketers to preview and trade-ins. However, consider thatcars in your inventory or package it for inventories in upcoming auction sales, auction-sourced units typically sell orthe wholesalers on Monday morning. bid on and purchase vehicles online, turn quicker resulting in a higher returnBut until somebody actually pays you review auction market reports, and on capital.for the trade-in, its value is only an manage auction inventories. Dealers caneducated guess. check recent auction sales online and, in How can you get the most out of your some cases, both view and participate in wholesale auto auction? Remember thatWholesale car auctions have live auctions as an active bidder directly most of your peers and competitors arebeen providing the solution to the from the dealership. already using the auction to help manageredistribution of used cars for the their inventories. They want and needbetter part of a century. Through active Research shows that franchised dealers your trade-ins. The job of the auctioneerbidding, auctions determine the exact take trade-ins on approximately 60 at the auction is to bring buyers andvalue of any given car on that particular percent of the new vehicles they sell sellers together for maximum returns today in that market area. And, because and 35 percent of their used vehicle both parties.of the volume, selling prices remain sales. A large portion of those trade-insrelatively consistent and predictable—a may not match the dealer’s inventory Six steps to auction success:valuable tool for any sales manager who profile and will either sit in inventory • Be present on the block tohas to know the best price he/she can or need to be wholesaled. Instructors represent your cars. Someone fromoffer for that trade-in vehicle. at the NADA Dealer Academy stress your dealership with the ability to to their students that a 90-day-old unit make the selling decision will beWholesale auto auctions do more than has been in inventory for 25 percent of able to see, based on the numberbring buyers and sellers together to the model year – a sizeable portion of a of bidders on any particular car,‘redistribute’ inventory into the right year’s depreciation. Liquidating via the where the market is, on that day, forhands. Most National Auto Auction robust market environment available that car. Other than retail, it is notAssociation auctions provide a full line at auction will often yield, in a timely likely that the value of that car willof services including auto detailing, manner, sales prices that exceed those increase over time if there was activemechanical repair, body and paint repair, achievable by other means. bidding on the unit. “Wholesale auto auctions do more than bring buyers and sellers together to ‘redistribute’ inventory into the right hands.” 16
  16. 16. • Know your market and sell to lane. Good sellers (and buyers) can bank financed leases, would indicate the money. Familiarity with auction usually find an amicable solution to that many dealerships will handle activity in you market area should most problems discovered after the more trade-ins as a percentage of total provide a good measure for the value auction sale. business. Consumers who cannot qualify of both active trade-ins and your for new car financing or who cannot pay grounded inventory. When you send • Get titles in fast. Processing titles new car prices for whatever reason, will your cars to auction, or when you quickly and correctly is necessary to be looking for a good deal on a late- are buying at auction, there should completing the auction transaction. model used car. With the decline in lease not be too many surprises. Auction Auctions work very closely with originations and more conservative values are surprisingly consistent. the DMV to make sure your cars are residual values, savvy dealers will ready to sell. However, unless the need to actively work the market to • Identify your cars to the auction title is at the auction, the rest of the find the right cars to meet the needs of early so the auction can attract transaction is delayed. their customers. The auto auction is the buyers to your lane. Auctions have a likely resource for redistribution of late tremendous resource in the database Car dealers who take advantage of the model trades back to the right franchised of buying and selling activity in your resources available from their local dealer’s used car inventory. market area. They can, for example, wholesale auto auction will be in the notify buyers who have shown best position to get maximum return And what about the value of the trade-in interest in red Corvettes that you from their dealership investment. Over talked about earlier? At your local auto are selling red Corvettes in the next two million vehicles that received some auction, buyers and sellers establish the auction sale. level of reconditioning were analyzed to wholesale market value for cars like establish the value of those services at you trade, each week. Whether you • Be accurate on announcements the wholesale level. Off-lease vehicles need to sell that trade-in or buy fresh and diligent with vehicle disclosure. (primarily from manufacturer and inventory, auctions provide a full-range For the most part, sellers who try to captive finance sources) returned $1.77 of services to support the success of hide flaws in the cars they bring to for every $1 spent on reconditioning. your dealership. auction are recognized as that type Much of the gain realized was the direct of seller. Bids on their cars are often result of the efficiencies of volume at the lower to account for their pattern as auto auction facilities. a seller. On the other hand, sellers who are straightforward with their As a final note, the significant shift vehicles attract the best buyers. in the type of transaction handled by Don Elliott is the Vice President of most dealerships over the last two years Marketing and Business Development • Work with buyers on arbitration will change the role of the wholesale at ADESA Corporations. He can be issues. Not all vehicle flaws are easy auto auction in the future. The general contacted at 866.429.6848, or by email to identify prior to the sale or in the move away from leasing, particularly at “At your local auto auction, buyers and sellers establish the wholesale market value for cars like you trade, each week.”august 2003 17