AutoSuccess Aug04

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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

AutoSuccess, magazine, sales, new, used, selling, salespeople, vehicle, dealer, dealership, leadership, marketing

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AutoSuccess Aug04

  1. 1. Re-Elect George W. Bush, page 8 .biz You Know What the Challenge is... E NSURETY G R O U P, I N C . What’s the Solution? Selling is a Communication ProcessAugust 2004 Uncommon Success 10 Secrets to Great Leadership How to Identify and Remove the Four Obstacles to Closing
  2. 2. Work smarter with ADP’s Tune-Up Training Program.At ADP, we’re committed to helping dealers make the most of theirtechnology investment. This focus has inspired us to develop a Available Tune-Upsnew training program that brings an ADP application expert directly Business Office: Service:to your dealership. We can improve dealership system utilization by • Accounting • Service Advisorfocusing on specific ADP applications or a particular job function. The • Office Manager • Service BookerTune-Up Training Program includes a comprehensive assessment that MIS: • Service Departmentwill help employees make the most out of their current positions and • Service Department with • MIS Dispatch or EROassist them by increasing knowledge and productivity levels. Parts: • Service Manager • Parts Department • Service Manager with ERO • Parts Manager System Administration:How the Tune-Up Training Program works • Special Order Parts • System Administration• ADP Tune-Ups include a custom assessment that will Sales: identify current system utilization. • Customer Relationship Management• Application experts will review dealership processes • F&I Manager and help implement “Best Practices.” • Finance & Insurance • Sales Department• The ADP consultant will offer an assessment at the • Salesperson end of training and outline a recommended plan for ongoing training and development. Get it atFor more information on the Tune-Up Training Program, contact www.DealerSuite.comyour ADP Sales Representative or an ADP Training Coordinator at866-535-8487 (U.S. and Puerto Rico), 800-387-8015 ext. 3724 (Canada).ADP, Inc-Dealer Services Group / 1950 Hassell Road / Hoffman Estates, IL 60195-2308 /www.DealerSuite.com / 888.424.6342 ©2004 ADP, Inc-Dealer Services Group / Printed in the U.S.A.ADP is a registered trademark of ADP of North America, Inc. SELL CARS, PARTS AND SERVICE PROFITABLY.TM
  3. 3. I ncrearsfitss in Po e • Sales & tion • Cu stomer Satisfac • Processes & Stability SALES MANAGER FORUM: Motivating your Sales Team to Higher Profitability Taught By James A. ZieglerAtlantic City, NJ . .Aug. 17 - 18, 2004Atlanta, GA . . . .Sept. 8 - 9, 2004Pittsburgh, PA . . .Sept. 16 - 17, 2004Atlanta, GA . . . .Oct. 5 - 6, 2004Las Vegas, NV . .Oct. 7 - 8, 2004 BATTLE PLAN d horsing arounnts Immediately increase profits! 50 projects to immediately increase your profits by $100,000 per month! Sponsored by Dixon Hughes PLLC “Stop r consulta with amateu o track record.” Taught By James A. ZieglerDallas, TX . . . . . .Aug. 12, 2004 th n nd trainers wi Dates and locations subject to change iff In Town a There’s A New Sher 6-0510 ation: 1-800-72 For more inform stems.com rsy www.ZieglerSupe
  4. 4. profit solution ADVERTISEMENT scott Scott Joseph By joseph Amazing marketing “tool” helps Dealers and General Managers who use direct mail increase their net profits 30% to 100%! Are your direct gives you huge marketing advantages But J&L can, and J&L does. Our statistics mail promotions over all your competitors. tell us that for the last 3.5 million pieces producing of mail delivered, the Response Analysis consistent and Now, you’ve heard the cliché… has helped our dealer clients sell an improving Information is what? Right. Information average of 33 cars for every 10,000results or are they falling short of your is power. If you could look back upon pieces of mail delivered!expectations and declining with each the history of thousands of promotions,promotion? Most dealers who use direct examine the mailing lists, read over the The Response Analysis is the mostmail are still searching for the elusive direct mail letters, track what worked, powerful marketing tool in automotivecombination that produced record- what didn’t, who bought, who didn’t, advertising today. Find out whybreaking results like their Þrst direct mail and why… would this be powerful J&L’s dealership response ratespromotion. information to you? have increased 72% in the last two years. This combined with unequaledThe number one objection we hear when The reality is every direct mail promotion professionalism and customer support isprospecting for new dealer clients is that produces both good and bad results. The why 94% of all J&L customers continuedirect mail doesn’t work anymore. When problem is being able to easily recognize their relationship with us for years.we ask why most dealers say, “My market which is which. That problem is solved!is saturated” or “It only attracts gift Now you can have all the information Just ask them for yourself. Rickseekers” or “The people who respond are you need to ensure success at the touch of Hillman from Hollingsworth Mazdanot buyers.” a button. says, “J&L Marketing’s direct mail program is the most cost-efÞcient form ofI agree with all these reasons because Imagine being able to know immediately advertising that I have seen in the thirtyif a direct mail promotion is not well which market areas produce results years that I’ve been in the car business.”thought out from start to Þnish it will not that exceed your expectations and morework. This brings up a question! And the importantly which ones to avoid. Simply Pat Fogerty from Classic Toyota says,question is… asking the computer… “How do we “We have used J&L Marketing for years generate more trafÞc and sell more cars?” because of their continual support andHow can you eliminate all the elements J&L’s proprietary Response Analysis excellent results. This is an invaluableof a promotion that do not give you the System directs us toward those activities service.”return on investment you need and at the that bring success, and away from thosesame time improve on the aspects that that don’t. We reÞne the offers, prices, Billy Gordon from Patrick Chevroletproduce exactly what you want? That’s strategies, locations, and even the days of says, “We have been running with J&Lthe real question isn’t it? If you could the week that bring the highest return. Marketing for four years, and we caninvest advertising dollars only where attribute more sales to them than anyyou see great results and eliminate what Our analysis allows us to produce ever- other form of advertising. J&L is the mostdoesn’t work, how many more cars could increasing levels of success. Since professional company I’ve worked withyou sell? How much money would you the market is a lot smarter than we since I began in the car business 18 years ago.”make? are, we don’t go by hunches, opinions, or gut feelings about how to improve You too can start experiencingI’ve invested a small fortune to develop performance. We rely solely on the consistent results from the mostthe marketing “tool” that will provide numbers to tell us “where to from here.” professional marketing companyyou the information that is necessary right now by contacting my ofÞce atto produce the results you really want How can anyone make recommendations 866.856.6782 and asking for Lisa Wilson.and could quite possibly increase your to you without the validation of facts, Or e-mail her at: lwilson@jandlmarketsales with each promotion from this day statistics and numbers? How can anyone ing.com. As soon as you contact us weforward. J&L Marketing is the only Þrm implement a growth strategy based will begin to create a growth strategywith this unique capability. It allows us on hunches and guesses, rather than unique to your organization, producingto research and analyze your promotions this powerful analysis program? It’s more proÞt, more volume, and morefrom over 100 different perspectives and obvious…they can’t. satisÞed customers. www.jandlmarketing.com
  5. 5. Beat Your Competition During the Olympics! more Is it your job to sell cars and spend less money doing it? Do you want to be the dealership in your market that capitalizes on the ex cit emen t and patriotism of the 2004 Olympics? Do you want your tivated customers to be mo to buy on-the-s pot? 40 Different Themes to Choose From! t this Ask how you can ge Limited Edition Ultimate ! Event Package FREE All orders must be placed by August 12th, 2004 for this Limited Edition Event.The Best Sales Events for Every Month of the Year!Call today to see how you can get your FREE Ultimate Event Package. Everything you need for a Complete Weekend Sales Event Here’s what you get: Only $ 995 Plus s&h NCES AVAILABLE ■ (2) 25 x 3 Event Banners OVER 4,000 REFERE ices ■ asking if the pr (200) 8.5" x 11" Double-Sided Event Hang Tags “Customers were ought that day! They th ■ (50) 18" x 12" Double-Sided Event Office Posters were only good on le!” anufacturer’s sa ■ (12) 24" x 36" Double-Sided Event Showroom Posters it was a special m Hills ■ (288) 17" Event Logo Balloons –Saturn of Chapel – ■ (250) 3" Adhesive Event Badges -Box every month “We use Sale-in-a e activity ■ 500 of Pennant Strings ■ (25) Event Logo Pens otes positiv It works! It pr om omers, ■ B/W Camera-Ready Event Clip Art with salespe ople and our cust lue.” plus it’s a great va –Ventura Toyota ce ed ed ou r If you can match our “S al e- in -a -B ox ex otivating our ex pe ct at io ns in m quality and quantity for a lower price, eated a buying from any source in salespeople and cr stomers. America, we will give frenzy with our cu s!!” you our products FREE! Sale-in-a-Box work –Gulf Chrysler Plymouth Dodge Order Today! 800-453-8591
  6. 6. Re-Elect George W. BushThis November, we will determine who is type of leader George W. Bush was during • The GDP has grown by more thangoing to lead our country through some this tragic event. In President Bush’s own five percent over the last three quarters,of the most difficult times in our nation’s words: “In our grief and anger we have the fastest rate of growth in nearly twohistory. This article will summarize who found our mission and our moment.” decades.George W. Bush is, what he stands for, President Bush declared war on terror and • Productivity grew at the fastest three-and why so many Americans want him to has made victory in the war on terrorism year rate in more than 50 years.continue to lead us into the future. Below and the advance of human freedom. Already,you will find a summary of Bush’s platform he has led a coalition of nations who haveand some tips on how to have a positive liberated the people of Afghanistan from the From 2000 to 2003, the American economyimpact on our country’s future. brutal Taliban regime and denied al-Qaeda experienced an unprecedented combination its safe haven of operations. He liberated of shocks: the stock market bubble bursting;Leadership is defined in the most difficult the people of Iraq from the terror of Saddam an economic recession; the terrorist attacksof times and George W. Bush proved his Hussein and thousands of terrorists have of September 11th and subsequent War onability to lead shortly after he was elected been captured or killed and operations have Terror including the war in Iraq; and theon September 11th 2001. He led us through been disrupted in many countries around discovery of corporate accounting scandals,one of the most tragic events in American the world. In President Bush’s words: “Our years in the making, that underminedhistory. Great leaders do not always do Nation - this generation - will lift a dark confidence in corporate America. Presidentwhat is popular, they do what is right. Great threat of violence from our people and our Bush acted promptly and aggressively toleaders do not always give people what they future. We will rally the world to this cause address these shocks and he has lead us outwant but instead they have the courage to by our efforts, by our courage. We will not of the recession and into an era of the fastestgive them what they need. George W. Bush tire, we will not falter, and we will not fail.” growth in GDP and productivity in nearlyis focused, determined, and steadfast in his two decades.actions to lead our nation in the direction he George W. Bush inherited an economybelieves is best for everyone. He is a man of that was in recession, and the economy is George W. Bush is the man to lead our nationstrong character and conviction and he does strong and getting stronger. The President’s into the future. We need to do everything wenot flounder or flip flop on issues based on pro-growth policies have helped drive the can to mobilize our friends, family and co-what others think or say because he is led by economy and move the recovery forward, workers to spread the word and to re-electprinciples and not polls. putting more money in the pockets of George W. Bush on Election Day. If you’re America’s families and laying a foundation a dealer or a manager, you can make a hugeThe attacks of September 11th changed for robust growth and job creation now and impact by encouraging your employees toAmerica forever and American’s saw the for years to come. vote for our future. God bless America! d 12 ea pg R e: cl Dealership improves from 40 units a month rti A to over 300 units in less than 12 months! Do you believe there is room for your sales team to improve their results by a minimum of 25%? Do you believe an improved sales process could increase your gross proÞt at least $200 per unit? “I received 130 fantastic ideas from a one day seminar. By far the best program I’ve been to.” Rick Sandoval, GM - Sims Buick GMC Nissan, Warren, OH. “Totally unique. This is the best information out there. Everyone in the business needs this information. A person would be nuts not to use Tewart Enterprises, Inc.” Mark Tewart Tim Houseburg, Mayes County Chrysler, Mayes County, OK. Call Now for a FREE special report and matching audio on how to recruit, hire, train and keep a dream team of sales people! 888 2 TEWART or visit www.tewart.com 8 subscribe today at www.autosuccess.biz
  7. 7. sts ms ls fis lr ZigZiglar sales and training solution Selling is a Communication Process Selling is a The simplicity of selling is similar to the game of golf. Arnie’s dad said, “Son, communication other professions. The great Hall of Fame hit the ball hard. Go find it, hit it again.” process. We can baseball player Willie Mays was once Selling should be similar. make it easy for asked to describe the game of baseball. He the customer to replied, “That’s easy. They throw it, I hit it. understand why our They hit it, I catch it.” Now, that is simple. If we can have oursolution will benefit him/her. Arnold Palmer’s father taught him to play customers feel the way that we do about our product or service, we will have customers for life. Here are three principles that may allow us to keep it simple: 1. Selling is not telling, selling is asking. When we ask appropriate questions, we improve our chances of successfully offering the correct solution. We must continually practice the art of asking, listening, tuning in, and seeking clarification. Here is a great question: “Mr. Customer, if you could receive those things, what is the benefit to you?” The answer to that question allows you to position your presentation. 2. Listen so the customer will talk, talk so the customer will listen. The old saying holds true to this day: people don’t care how much you know until they know how much you care…about them. Therefore, we should be open to the words and the meanings of the customer’s answers so he/she is encouraged to give us the vital information we need to match our solutions to their needs. 3. Selling is a transference of feeling. Selling is a “transference of feeling!” If we can have our customers feel the way that we do about our product or service, we will have customers for life. We must communicate a confidence in ourselves as well as in our products and services. Selling is easy; keep it simple. Ask questions, listen to the answers, and transfer your feeling for you, your company, and your solutions. Communicate to your prospect that you believe in and are proud of what you sell. Remember -- to be convincing you must first be convinced! Zig Ziglar is the Chairman of the Board of Ziglar Training Systems in Dallas, TX. He can be contacted at 866.873.0026, or by email at zziglar@autosuccess.biz.august 2004 9
  8. 8. sts ms ls fis lr MichaelYork marketing solution Uncommon Success Most people in Why can’t you? seen as remarkable and not boring? Lots of life are looking for Why don’t you? things. the answers. So that would make it William Faulkner once wrote, “Don’t 1. Be (more) creative. “common” right? bother trying to be better than your Use your imagination. Be on the lookout The real problem contemporaries, or your predecessors. for ways you can be more memorable. Takewith “common” is that it means ordinary, Try to be better than yourself.” some time and invest it in exercising youraverage, boring, plain, or nothing really creativity and spending time with creativespecial. Is that how you want to be known That’s the challenge...becoming better than people. What resources can you use toin the marketplace? Is that how you want you are at this moment. become more creative?to live your life? How about choosing the“uncommon” approach? Change the way you think, maybe even 2. Do what’s easy to do. about something you already know a lot That’s the cool part...any of the things thatAsk Better Questions. about. In today’s economic show it’s about contribute to you becoming uncommonWhen you begin to ask better questions, to continuing the improvement. Change is are easy to do. The common perceptionyourself and to those around you, there’s going on around you right now, but how is that it’s hard, and time-consuming, anda curiosity that propels you to find the often is it going on “in” you? How are you that’s why excuses are common and value-answers that are really important to you. keeping up the learning curve? creators are the highly paid top performers. They will always have job security,Try some of these...how do you answer Finding the right answers for you and largely because their security exists withinwhen someone asks, “How’s business?” your life isn’t impossible. It’s just themselves.or “How’s life treating you?” Your answer uncommon. What does it mean to “Becomesays a lot about you and your attitude. Is uncommon?” What is it? Uncommon 3. Go to work on you.there anything about your life or your work is different. It’s unique, remarkable, Top performers and high achievers workor your legacy you’d like to change? It’s memorable, and that means you’re harder on themselves than on their job.available. Are you? unforgettable. Uncommon companies, or When you work harder on you, it means individuals...choose to be that way. you’ll do any job better...because you areWhat do you want to be known for? better. What’s your greatest learning asset?How can you create positive change, Top performerspersonally or professionally? 4. Read, Listen & Write.How can you learn to cultivate opportunity What if it really were as easy as reading,from the challenges you’re faced withtoday? and high listening and writing? Could it be?How can you get greater enjoyment fromyour life? achievers work Less than five percent of Americans have a library card (uncommon?), over 80% haveHow curious are you about the kind ofsuccess you would like to achieve? harder on a video rental card. Every top performer writes handwrittenDon’t settle. themselves than notes. on their job.Explore. Does that really make a difference?Don’t quit. When was the last time you received aNever ever give up. handwritten note? How did it make you feel?Ask yourself, “What am I becoming?” as Uncommon companies have a unique How did it make you feel about the persona result of what you’re learning...or not identity that is instantly recognizable. sending the note?learning. The real question is not “What Companies like Disney, Ritz Carlton, Uncommon.am I getting (paid)?” but rather, “What am I Southwest Airlines, Federal Express andbecoming?” What can I learn that I can take others bring about a mental picture of Try doing the things that you know youand create value that pays me well? And in “yeah, they’re special.” should do, and you know you can do andmaking plans and setting goals don’t forget see how it works for you. It’s uncommon.your priorities...like “Life first” and “Work It’s JetBlue, Wal-Mart, Starbucks andnext.” Most people begin setting goals for Harley Davidson. There’s a whole newwork, and leave the life part undone. breed of uncommon individuals and organizations. It’s hard to describe any ofNext question, “Am I excited about what I them, what they do or how they do it, asdo?” Are you? common. Michael York is an Author and Professional Speaker. He can beDo you love what you do? So what can you do to become uncommon? contacted at 800.668.5015, or by emailIf not, what would you change? To set yourself apart as different? To at myork@autosuccess.biz, or visitWhat would you love to do if you could? become atypical and unconventional, to be www.MichaelYork.com. 10 visit us online at www.autosuccess.biz
  9. 9. sts ms ls fis lr MarkTewart sales and training solution Fake It, Till You Make It You are who you dialogue when you write goals or have Every person you come into contact with decide to be at any thoughts about anything you desire. When tries to define you based upon his/her own given moment. It does thinking of your goals, if you repeatedly thoughts and beliefs. Your workplace is full not take money, a think of the specific reasons of how and of people with their own limiting mental degree, a certain age, why your goal may be hard to obtain, you programming that want to define you in a certain appearance, are creating the “When-Then Syndrome.” a way that makes them feel better abouttons of experience, knowing the right Your subconscious identifies your current themselves. People will create images suchpeople, past success or any other qualifying programming that tells you that for X to as “you are just lucky” or “the favorite of thefactor that you may be currently using as occur you must first have Y. If that is the case, boss” or “a weak sales person”. So often youa subconscious roadblock to your desired your current mental programming is limited act in your work environment in a role basedsuccess. Your belief system creates your and will not allow you to break through your upon the images and messages acceptedresults both past and present. If your current current barriers to further success. by your subconscious. Unfortunately,belief system is not what it should be to your subconscious accepts all images andsupport your success, you must fake it, till Write down the first twenty mental images messages without filtering. However, youyou make it. or messages you heard or were taught about can overwhelm the negative messages with money. When closely examined, most of your own positive messages. Your consciousIf you currently don’t appear to be on the the images and messages remembered will mind will choose and react to the strongestpath that will create the level of success be limited, negative, and fear based. Those messages being given to it. Don’t allowin the form you desire, you must begin to negative messages and images have taken others to create your destiny based uponidentify the mental programming that is a life of their own and have been accepted their own limited beliefs.limiting your success before you can change in your subconscious as absolute truths. Toyour resulting limiting actions. increase money, you must identify your Your subconscious can act as an automatic current limiting messages and rewrite the responder in a positive form just as it canYou must pay close attention to your inner- messages to create accepted new truths. negatively. You must bombard your mind with positive and repetitive images for your conscious mind to react with positive messages. Read and listen to the material that will support you in creating the images you desire, while reducing and eliminating the negative influences you encounter from relatives, co-workers, and the news. You create your own reality. It’s your responsibility to choose the right sources of can help you achieve at least information to saturate your brain. 50% additional trafÞc into your dealership To start manifesting your desires, you must become clear on your goals. Write what you want in present tense using vivid details Would you like us to coordinate and execute a of your emotions and thoughts at the time successful promotional campaign that increases of obtaining those goals. The repetitive ßoor room trafÞc and ultimately increases sales? conditioning of your subconscious with the Does eye-catching, bright-colored signs imagery you have created will begin to grow strategically placed throughout the city sound just as your muscles grow by the repetitive like it could draw attention to your business? action of lifting weights. Soon your positive imagery will be so strong that your belief “Show & Tell’s Signwalkers are great. It’s nice to see the same system will accept this as reality before it crew every weekend. I highly recommend Show & Tell if you want has ever transpired as reality. There will be to increase your foot trafÞc!” - Patrick Walker, General Manager no difference between your chosen reality “It’s like having a giant used car tent event without the giant cost! and your current state. Your belief system This promotion works!” - Daniel Sterkel, General Sales Manager will accept each step and each day as a part of your path to success. Dare today to choose If you call now and mention this ad, we’ll what you desire and the actions that support give you your Þrst 25 signs for free! those desires. 800.601.3221 or visit www.showandtellsp.com for more information Mark Tewart is the President of Tewart Enterprises. He can be contacted at 866.429.6844, or by email at mtewart@autosuccess.biz. 12 successful solutions at www.autosuccess.biz
  10. 10. sts ms ls fis lr FranMcAllister leadership solution OFAC, the US Patriot Act and the Automobile Dealer: How to be in Compliance Legal requirements In a recent article published by the Augusta regulation. In fact, the regulations require for industries change Chronicle, Milly Millerwise, spokeswoman you to know your customer by obtaining frequently and being for the Treasury Department, which is and documenting valid identification, and ready to respond to responsible for enforcing the order, was being able to provide the documentation those changes are quoted as saying: “This is one of the most should you be asked. No background critical for every important weapons to fight terrorism.” To check is required. However, checking theindustry. Recently there has been an date, $141 million in terrorist assets has “blocked persons” list is required under theincreased urgency in the automobile industry been frozen. regulation.regarding the OFAC regulations and thefederal requirements of the regulation under Although this order has been in effect for A changing environment is alwaysthe U.S. Patriot Act. Complying with the close to three years, automobile dealers challenging. Information regarding thisregulation is mandatory for every industry. are just now being made aware of their regulation is available through the U.S.Executive Order 13224 ordered the Office responsibilities and of the consequences Treasury by visiting their website atof Foreign Asset Control (OFAC) to make associated with non-compliance. Penalties www.ustreas.gov.available to financial institutions (which can be severe. Depending on the program,includes car dealerships) a list of “blocked criminal penalties can include fines frompersons” known as “Specially Designed $50,000 to $10 million while imprisonmentNationals” (SDN). The order, among other can range from 10 to 30 years for willfulthings, prohibits U.S. citizens and business violations. Civil penalties can range fromentities from entering into “any transaction $11,000 to $1 million for each violation.or dealing” with individuals who have been Fran McAllister is the Vice President oflinked to terrorism and appear on the list of There has been some confusion in the Sales at Integra Systems. She can be“blocked persons”. This order is designed industry that background checks are contacted at 800.668.3107, or by emailto work in conjunction with the Patriot Act. required to be in compliance with this at fmcallister@autosuccess.biz.august 2004 13
  11. 11. sts ms ls fis lr SeanWolfington leadership solution 10 Secrets of Great Leadership The greatest 4. Attitude: people the right questions you will leadership secret Leaders with a great attitude are more get the right answers. When people in the world is not productive than people with a negative first start in their job, their attitude is a secret to the best attitude. Customers and fellow positive and they are eager to study, performers in the employees want to be around someone learn, and grow. Unfortunately, after industry. The secret with a positive attitude. If you want a little time goes by some of us canto their success is their passionate pursuit to change your behavior you have to believe the myth that we have “figuredto serve and satisfy their customers change your attitude. it all out.” The fact is that success is aregardless of what it takes. The best leaders journey and not a destination and thehave a compulsion for taking care of their 5. Good Thinking: most productive leaders are alwayscustomers and the employees they serve. Great leaders have great thinking. learning.This passion for serving the customer starts The best leaders focus on the positivewith a selfless attitude to do the right thing opportunities and people around them. 9. Process:for other people. Below you will find a If you think positively, you will feel People who follow a clearly definedfew of the best practices of leaders in the and behave positively. You are what process are usually more effectiveautomotive industry: you think and therefore you should than those who do not. If someone watch how you think. has a lot of natural talent and they 1. Purpose: perform well without a process they The best leaders have a deep sense 6. Circle of Control: will normally perform even better of purpose. They recognize that their Leaders realize that it is a waste of with a process. When a dealership has job has meaning and that they can time to focus a lot of time and energy a clearly defined process for how they protect their customers from other thinking or complaining about things handle all of their customers, they can dealers. In addition, they are great at that are outside of their circle of deliver a constant positive experience communicating that vision to others to control. The most effective leaders for their customers on the showroom, motivate them with a sense of mission spend most of their time and energy service isle, phone, internet, follow that inspires the ordinary to do the focusing on what they can change or up and more. The best leaders define extraordinary. affect. If we recognize a problem and their process by focusing on how focus on the solutions that we can take customers buy rather than on how they 2. Passion: action on, then we are being more like to sell. What would you like your Great sales people have a love for effective. customers to experience when they what they do and for the customer. shop, buy, or service their vehicle at Enthusiasm is contagious and they get 7. Constant Improvement: your dealership? everyone around them excited about The best become the best because they the dealership, their products, and are always seeking ways to become 10. Execution: themselves. Enthusiasm is like a heater better. It surprises me that average In the end, results are what matter that spreads heat throughout the entire people are usually content with who and the best leaders establish positive dealership and it can create an attitude they are and what they are doing while habits that lead to positive execution. of winning that is crucial for teams to the above average performers are There are a lot of talented people in succeed. always seeking to grow and improve. the car business and the one thing that Pride is the enemy of progress because separates the good from the great is 3. Belief: average people focus on why they are their ability to execute and get the job The best believe in themselves, the so great but the great people are always done over the long term. dealership, and the products they trying to reach above and beyond the sell. This belief will shine through average. No one is perfect, and some By following some of these leadership in everything you do. Do you really people use this as an excuse for being principles and approaches, I hope you make believe that your product is the complacent and not trying to go to the more money and make a real difference in absolute best in the market? Do you next level. your lives and the lives of the people you believe that your dealership has the serve. most to offer? Do you believe in 8. Eager Student: yourself and your desire and ability to The most progressive leaders are serve your customers during and after always learning and growing. People Sean WolÞngton is an Owner of BZ the sale? If your belief is strong it will who have an open mind and seek Results.com. He can be contacted at help you shine through the difficult new and better ways to do things 866.802.5753, or by email at moments. drive progress. If you ask the right swolÞngton@autosuccess.biz. 14 subscribe today at www.autosuccess.biz
  12. 12. $100,000 to $450,000+ $450,000.00 in 4 Days (3 w/ Snow & Rain)Gross ProÞt in 4 Days! 03/2004! Record Sale for Karl Malone Toyota, UT with PDS, Inc. Set 40 Year Record at Duea Motor Co. Albia, IAPREFERRED DEALER SERVICES, INC. $211,000+ in 4 Days.“THE MOST EFFECTIVE STAFFED SALES & TRAINING EVENT IN 40 YEARS” Mike Duea - Dealer, Duea Motor Co. IAWould you be interested in delivering 30 to 70+units in four days at $3200 - $4500+ per retail? $175,000.00 Gross ProÞt on Inventory We Would Have Lost $75,000.00+ at Auction! WeWould you like to turn aged inventory with no Look Forward to our Next Saleneed to wholesale for a loss? with a “Clean Inventory” Wade Nelson, Karl Malone Toyota, NMWould you like to consistently generate proÞtsexceeding $200,000 in four days? We have Successfully concluded our 4th “AcquisitionWould you like to increase your proÞt per retail Sale” thanks in Large to Markby $300 to $500 per retail after we leave? & Ann Proctor, They are Excellent! They maximized proÞt on every deal and integrated well with our staff. Mark & Ann Proctor, Dan Wachtel - Dealer, Nationally Recognized Wachtel Ford-Lincoln- Dealers with 25+ Years Mercury Inc. AL Experience...#1 CSI/QCP PDS, Inc. Provides the Highest Quality Management Preferred Dealer Services Teams in the Automotive Founded on Trust Industry Today... The Nations Built on Integrity. Leader in Automotive Sales Promotions. “Anytime, Anywhere a Product or Service is Call today to reserve your Provided...Someone Will Offer next event, scheduling is limited! it for Less! As Always, You Get800.453.8217 What you Pay For and Pay for What You Get.” Anonymous.please visit our website for more details or to request a package.www.AcquisitionSale.com
  13. 13. fs feature solution KevinSmith You Know the Challenge... What’s the Solution?The customers that you earn every day leads to increased traffic in your service rewards and how to utilize the program atare yours to keep or yours to lose, and the department. We have all been trained that your dealership. The registration takes placechallenge is that approximately eight out of customer satisfaction is the key to retaining on a secure Web site.10 are choosing independent repair facilities. our customers. Taking care of the customer is critical to your long-term success, but it has Industry leading dealership rewardsThis trend has a quantifiable correlation become the rule rather than the exception. programs offer the ability to automaticallyto your long-term vehicle sales volume. generate customized electronic CSI surveysNADA states that “if the customer utilizes Due to customers’ inflated expectations, to your customers, as well as awardingyour service department throughout levels of service are no longer the major them bonus points for their input. Theytheir ownership experience, they are 17 contributor to repeat purchase behavior. automatically provide the customer with atimes more likely to repurchase at your Simply “satisfying” the customer no longer monthly account summary and customizeddealership.” makes the grade. Look no further than your monthly specials. own dealership: Approximately 90% ofThe numbers strongly indicate that the customers who purchase a vehicle at When returning for service the customercustomers who perform ongoing service at your dealership are “satisfied”. If 90% are simply hands the card to the cashier. Theyour dealership come back and repurchase satisfied, why are only 20% coming back for cashier swipes the card in a customizedtheir next vehicle. Customers who use Jiffy service on an ongoing basis? touch-screen terminal. The cashier touchesLube, Pep Boys, Firestone, etc., and have no the applicable icon so you are able toongoing relationship with your dealership, In this regard the auto industry is not unlike track the benefits being utilized by yourdon’t. any other. As high as 85% of all consumers customers. who defect from any brand or product saidAdditionally, this customer defection has a that they were “satisfied”. Suppose the An example transaction might be that theprofound impact on your customer pay labor customer used to fly airline X. The customer customer spent $90, saved $10, and earnedsales and on your return on investment. wasn’t dissatisfied with airline X however 900 points toward future services, or towardFor example, if you sell a $20,000 new or airline Y gave the customer a compelling the purchase of their next vehicle. Theused vehicle today vs. selling $20,000 in reason to switch; unlimited first class benefits are typically dealership-specific, butcustomer pay labor, how much are you left upgrades at no cost, more points if he/she for example; 2,000 points may be redeemedwith in variable gross profit? You are left was a frequent traveler, etc. They provided for a complimentary oil change; 5,000 pointswith approximately $12,000 in the service more “what’s in it for me”. equates to complimentary detail; or 10,000department vs. less than $1,000 in sales. points may equate to $250 off the purchase Nine out of the top 10 major industries and of the customer’s next vehicle.Given that the customer is much more scores of other businesses have identifiedlikely to repurchase if they utilize your this challenge and utilize rewards programs Look for a system that has automatedservice department on an ongoing basis, to provide more, “what’s in it for me”. The reporting so you will be able to pick out theand performing this service work yields airlines, hotels, grocery stores, Starbucks, applicable reports and data you want filtereda tremendous return on investment, Barnes & Noble, credit cards, Wal-Mart, from the system. It should query the databaseformulating and executing day to day Viagra, sports teams, banks, restaurants, dry and automatically send you the informationsolutions to increase service sales is a major cleaners, and gas stations, the list goes on. daily, weekly, or monthly.focus for dealers and manufacturers alike. These companies have remained dedicated to customer satisfaction, but they provide The system should be programmed toIncreasing sales in your fixed operations is customers with a compelling reason to do automatically contact the customer over 50no different than increasing sales in your business with them on an ongoing basis. times in four years. Additionally, filter thenew or used car department. What are the data in order to facilitate targeted marketingfactors that lead to increased vehicle sales? Implement a program customized to fit with campaigns soliciting specific segments ofMore floor traffic or a better closing ratio. the culture of your dealership. The most your customer base. For example, e-mailThe same applies in service; if you want to successful dealership rewards programs all of the customers who purchased threeincrease service sales, generate more traffic follow a consistent pattern. The dealership months ago, but who have not come back(repair orders) or increase your closing ratio issues a rewards card at time of delivery. in for service, or, when the next new model(hours per R.O.). In some cases, the rewards card is mailed comes out, target previous owners who fit to the customer’s home accompanied by a specific filter criteria and send an electronicCustomer loyalty not customer satisfaction welcome letter explaining the benefits and brochure and invitation for a test drive. 16 www.autosuccess.biz
  14. 14. There are five key components when We find that many service departments have If you are falling short of your expectationsconstructing a rewards program: common areas of opportunity. (Do a quick in this area, you may consider a tool to assist self evaluation.) your advisors in this endeavor. A Virtual 1. How do you get the customer in Advisor has short, multimedia, feature and the first time? You have to get them • Effective labor rate at 100-105% of benefit presentations housed on the Internet comfortable with coming to your your door rate? (correctly priced labor along with hundreds of customized service dealership. inventory) menus. For example, the advisor may say, 2. Search for a long-term hook. Create • Customer pay hours per R.O. at 2.5 or “Let me show you what is entailed in our a fear of loss, something that in effect above? (selling system performance) 30,000 mile service, and why those items makes it painful to defect from your • 125%-135% shop efficiency? (tech are important to perform at this mileage dealership. It must have a big perceived skill level, work distribution, traffic interval.” value and minimal cost versus your count) return on investment. The advisor spins the screen around toward 3. Develop some type of transactional Your effective labor rate is predominately the customer, clicks a button, and a 15- discount so the customer must use a byproduct of properly pricing your second multimedia presentation presents the card each time they come into the labor inventory. Review the 150-200 most the value. The advisor then clicks another dealership. performed labor operations. This can be button and the system pulls up one of several 4. Be sure to take credit for the things done with a specialized spreadsheet taking hundred pre-programmed menus based on you are already doing i.e. free car into account your cost of labor per hour, the vehicle model, year, mileage, and normal washes, 27 point inspections, bird dogs the flat rate time of the job, and your target or severe driving conditions. (check state laws), etc. effective labor rate and gross profit margin. 5. The more money the customer In an average store .5 hours per repair order spends, the more they earn toward In an average store, if your effective labor is costing you roughly $250,000 in an annual future services or toward their next rate is $10 below your door rate, it is costing net profit. vehicle purchase. you roughly $125,000 in annual net profit. • What if you had implemented theseOnce the benefits have been constructed and In addition to your effective labor rate, your types of solutions 5 years ago?a rewards program has been implemented, sales production system is a key element to • What would your R.O. count be?many dealers choose to enroll their existing maximizing your profitability in service. What kind of database contacts wouldcustomers in addition to their current Customers buy when the perceived value you have amassed?customers. Additionally, many dealers who exceeds the price. How much value is • Would you have targeted yourimplement a rewards program not only target being presented on your service drive? competitor’s database and driven themtheir existing database, but they also target Are the tests, measurements, or guidelines into your service department and in turnall of the (Chevrolet, for example) owners that dictate the customer needs for a given back into your sales department?in a market. They lay that data against their service being documented and verbalized? • What if you presented every productexisting data and what’s left are all the Is the customer explained what is included, to every customer every time on yourChevrolet owners in the market that they and what benefits will be derived from the service drive in a visual, consistent anddid not sell a car to. With the inability to pull recommended service? Is all of this being compliant manner?DMV data, it is no longer an exact science. illustrated to the customer visually?However, there are several data extraction Where will you be five years from today?and research companies that can facilitate When your customer is at a restaurant andthis type of match with up to 70% accuracy. their waitress comes by and asks if they would like desert after a big meal they mayIncreasing service sales requires the same often decline. But put that tray of freshingredients as selling more cars. Create more deserts in front of their face and there is goodtraffic or increase your closing percentage. chance that they may indulge.Rewards programs have a documented historyof increasing traffic. What’s the formula for Is your customer getting presented the desert Kevin Smith is the Chief Operatingincreasing your closing percentages, and tray at your dealership? Take five minutes OfÞcer at the Ensurety Group, Inc. Heincreasing your gross profit per transaction on and evaluate if the value being presented on can be contacted at 877.631.2903, or bythe service drive? your service drive exceeds the cost. email at ksmith@autosuccess.biz.august 2004 17
  15. 15. sts ms ls fis lr BrianTracy sales and training solution How to Identify and Remove the Four Obstacles to Closing There are several The third reason why the end of the sale Perhaps they recognize that they would be reasons why the is difficult is that customers are busy better off with your product, but the trouble end game of selling and preoccupied. It isn’t that they are and expense of its delivery hardly seems can be stressful and uninterested in enjoying the benefits of to make it worth the effort. They see no difficult. First is your product. They may feel they are pressing need or urgency to stop doing what the fear of failure overwhelmed with work and find it difficult they are doing and start doing somethingexperienced by the prospect. Because of to make sufficient time available to think else with what you are selling.negative buying experiences in the past, through your recommendations and make aover which you had no control, prospects buying decision. And the better they are as The good news is that everybody you meetare conditioned to be suspicious, skeptical a prospect, the busier they tend to be. This has bought, and will buy in the future fromand wary of sales people and sales is why you need to maintain momentum someone. If they don’t buy from you, theyapproaches. They may like to buy, but throughout the sales process and gently push will from someone else. You must find thethey don’t like to be sold. They are afraid it to a conclusion at the appropriate time. way to overcome the natural physical andof making a mistake. They are afraid of psychological obstacles to buying and thenpaying too much and finding it for sale hone your skills so that you are capable ofcheaper somewhere else. They are afraid You must Þnd the selling to almost any qualified prospect youof being criticized by others for making speak to.the wrong buying decision. They are way to overcomeafraid of buying an inappropriate product the natural physical Now, here are two things you can doand finding out later that they should havepurchased something else. This fear of and psychological immediately to put these ideas into action.failure, of making a mistake in buying your obstacles to buying First, recognize the normal fear of makingproduct, is the major reason why peopleobject, hesitate and procrastinate on the and then hone your a buying mistake experienced by the customer. Give him/her every reason youbuying decision. skills so that you are can think of to be confident in dealing withThe second major obstacle to selling capable of selling to you.is the fear of rejection, of criticism and almost any qualiÞed Second, accept that everyone you talk todisapproval experienced by the sales prospect you speak to. is busy and remember to always ask if thisperson. You work long and hard to prospect is a good time for them to give you theirand cultivate a prospective buyer and you undivided attention.are very reluctant to say anything that The factor of inertia is the fourth reason thatmight cause the prospect to tune you out can also cause the sales process to come toand turn you off. You have a lot invested a halt without a resolution. Customersin each prospect and if you are not careful, are lazy and often quite comfortableyou will find yourself being wishy-washy doing what they are currently doing. Your Brian Tracy is the Chairman & CEO ofat the end of the sale, rather than risking product or service may require that they Brian Tracy International. He can beincurring the displeasure of the prospect by make exceptional efforts to accommodate contacted at 866.300.9881, or by emailyour asking for a firm decision. the change or a new way of doing things. at btracy@autosuccess.biz. 18 www.autosuccess.biz
  16. 16. sts ms ls fis lr CarolMartin leadership solution Retention of Staff, Part I Retention of Staff What do we want? definition given by people actually is the second in this We may want a clone of our superstars, performing in that job? Can we agree series of four articles Priscilla or Mario. But what does that that if you and they disagree, that the designed to reduce mean? What is it about Priscilla or disagreement is important to reconcile, employee turnover by Mario that makes them superstars around even critical to retention? maximizing employee here? Well, in most cases, it means theymorale and productivity. outperform in the jobs they were hired to How do we find out what are the real do. And, environmentally, they work well demands for success in a given job? AskWho are we? with us, our dealership, our size, age, and the real experts! Ask workers in any jobClearly, the dealership’s age and size all the other environmental factors. to make a list of the things they do andare important components of its culture. the time they invest in doing each thingOlder dealerships have years of tradition We are talking about two critical parts each day or each week. Don’t look forand their own way of doing things. Larger of the employee retention equation: agreement on everyone’s part here. Lookdealerships may also have their own way of environmental compatibility (fitting with for agreement or disagreement with yourdoing things, but the ways have probably the “corporate culture” of our dealership) feelings as a supervisor about “appropriatebecome institutionalized, departmentalized and vocational compatibility (the ability to job behavior for success.”and often, in spite of all their best efforts, perform above the standard in the type ofde-entrepreneurialized. job being performed). Employee Retention, Part I The graphic form is important becauseApart from the obvious cultural differences Vocational issues. so many “position descriptions” or “jobcaused by the dealership’s age and size is We all have an image of the “used car sales descriptions” are in narrative form, and athe less obvious commitment to growth. man”. We all have an image of the “sales narrative is very difficult to visualize as aEveryone agrees that if the top line of manager”. But is this “manager” managing point-for-point comparison when sizing upthe dealership’s P&L is growing at 20% people or process? Titles can be misleading a candidate for employment.plus a year, everything else, including and that can mean trouble. It makes a bigprofits, is taken care of. But there is a big difference if a person is managing other Creating a benchmark of the job demands.difference between the dynamic old days people or a process. The difference lies in We are going to do a short benchmarkingof dealership creation and the new days the vocational or job demands. exercise. Think of a job or title in yourof dealership profit preservation. Here we dealership. Write that title here:have a corporate culture shift of major Is what you consider “appropriate job . Select the most appropriate answerproportions. And it is very much linked to behavior for success” the same as the from each of the pairs of statements below:employee retention, the topic of this, thesecond article in the series.First things Þrst. Work Demand BenchmarkAt the risk of repeating the obvious, the firststep in employee retention lies in employee • Columns 1 and 2 - The successful performance of this work requires:selection. We agree that an employee, behe/she a sales person, a service technician Column 1 Taking risks and facing Column 1 A strong desire to win oror a porter, is a different character when challenges orfunctioning in a small dealership with25 or 30 employees than he/she is in a Column 2 Being cautious and/or Column 2 A low- key, “live-and-let-third-generation dealership with 75 or 200 non-confrontational live” attitudeemployees. Column 1 Proactivity handling a Column 1 An assertive, “make-itAgreeing that the first step in employee challenge, or -happen” attitude, orretention lies in employee selection, wemust hasten to add that selection does not Column 2 Comfort following the 3 Column 2 An accommodating, 1begin with a classified ad. Selection for 2 lead of others supportive attitudeany title, from office staff to general salesmanager, begins with objectively and even“scientifically” determining exactly what • Columns 3 and 4 - The successful performance of this work requires:it is we are looking for. Because the new Column 3 The use of emotion/ Column 3 An enthusiasticcultural reality of a Generation X and Y charm to persuade, or communication style, orworkforce brings its own fresh challengesto traditional workplace operations, it is Column 4 The use of proof/fact to Column 4 A direct, speciÞcimportant that we establish a clear target of convince communication stylewhat we really want. 20 successful solutions at www.autosuccess.biz
  17. 17. continuedColumn 3 A high level of Column 3 Establishing, nurturing consideration, empathy, or relationships, orColumn 4 A high level of objectivity Column 4 Working with facts and and impartiality technical information• Columns 5 and 6 - The successful performance of this work requires:Column 5 A strong sense of Column 5 Comfort with multi- urgency, or tasking and change, orColumn 6 Persistence, strong Column 6 Comfort with routine, follow-up skills predictable tasksColumn 5 The ability to deal with a Column 5 Working at a fast, variety of tasks, or demanding pace, or you are their cureColumn 6 Working systematically at Column 6 Working at a relaxed, repetitive tasks steady pace• Columns 7 and 8 - The successful performance of this work requires:Column 7 Independent decision- Column 7 Being self-sufÞcient and making, or self-directed, orColumn 8 Adhering to rules when Column 8 Being cooperative, making decisions following directionsColumn 7 A “big picture” focus, or Column 7 The need to act independently, orColumn 8 A strong attention to Column 8 The need to follow a well- detail deÞned set of proceduresCount the column clues and color-in one box below for each clue to create a graphicbenchmark of the job demands of an employee with the title you selected above. These kids and millions more e Mary Tyler Moore nc ce have Juvenile s y International Chairman ng si lle e en rit bl D ly d ni ce cu ßu lf- xe im Diabetes, a disease that na in Ex Se Se In Fi W N A threatens their lives every day. None of them can outgrow it. But we’re closer than ever to a cure. Please, help us make life-saving research possible. Call 1.800.533.CURE or visit 1 2 3 4 5 6 7 8 www.jdrf.org. Job DemandsEmployee Retention, Part IINow describe the work environment in which this job is going to be performed. Pick theone phrase from the following 16 pairs that is most often true of an employee, working thejob title you selected earlier, in your dealership. continued on page 28august 2004 21

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