AutoSuccess Dec08


Published on

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

For similar content visit

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

AutoSuccess Dec08

  1. 1. AutoSuccess Best of the Best NADA 2009 – Details Page 4 December 2008
  2. 2. WARNING DEALERS DON’T SPEND ANOTHER DOLLAR ON ADVERTISING UNTIL YOU GO HERE...WWW.TKENADA.COM ® USPS PREMIER ACCOUNT The Driving Force Behind 866-476-7748 Event Advertising Copyright © 2008 Turn-Key Events and its licensors.
  3. 3. December 2008 CLOSING THE EXECUTION GAP 8 StephenR.Covey address: 3834 Taylorsville Rd. CLOSING THROUGH THE BUYER’S EYES 10 TomHopkins Building A, Ste. 1B Louisville Kentucky 40220 9 WAYS TO BETTER MANAGE MARKETING COSTS 12 LarryCochran phone / fax: 877.818.6620 / 502.588.3170 LOSSES INTO LESSONS Four Fail Safe Strategies 14 PaulCummings web: ADDITIONAL BUSINESS WITHIN YOUR DEALERSHIP? 16 RichardVanderport team: Susan Givens CHANGE - THE ONLY THING THAT REMAINS CONSTANT 17 PaulSnider Publisher sgivens1@autosuccessonline.comOUTWIT, OUTPLAY AND OUTLAST THE CURRENT MARKET 18 MattBaker Thomas Williams VP & Creative Director WIN BY PUTTING YOUR PEOPLE FIRST 22 JohnBrentlinger Dave Davis Editor and Creative Strategist WELCOME TO THE MARKETPLACE OF SLOPPY SELLING 26 MichealYork Brian Ankney 28 INTERNET SALES 20 GROUP XII SeanV.Bradley Sales-Improvement Strategist John Warner GENERATING MORE REVIEWS: Six Steps to Building Your Dealership’s Online Reputation 32 MichelleOldershaw Sales-Improvement Strategist IMPROVISING YOUR APPROACH TO IMPROVEMENT 33 Dr. JohnC.Maxwell general information: GET A GRIP ON YOUR MARKETING EFFORTS: Tips for How to Better Manage Your Web Analytics 34 AlCarl eNewsletter: LOYAL CUSTOMERS MEAN DOLLARS FOR YOU 36 SeanStapleton AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or 38 Subscription rate is $69 per year. TURNING NON-BUYERS INTO BUYERS RichardF.Libin AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content and page length. AutoSuccess provides its 40 contributing writers latitude in expressing advice and solutions; views THE BEST PRICE GUARANTEE MarcSmith expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect 42 of the content of any other magazine to which this magazine may be linked EMPLOYMENT VALUE PROPOSITION BrookeSamples from time to time. 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. AutoSuccess may 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, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220.12 36 28 helping to support...
  4. 4. StephenR.Coveyleadershipsolution CLOSING THE EXECUTION GAP In an earlier column, I pointed out a vast FIGURE 1: Execution Gap Magnitude xQ Question – % of 11,000 respondents “execution gap” in most organizations. I clearly understand my organization’s important goals – 44% So many crucial initiatives fail, so many We set goals that we have passion about – 19% change efforts collapse, due to this yawning Percentage of time I spend gap. Several months ago, FranklinCovey working on my organization’s most important goals – 49% asked 11,000 people in the U.S. workforce I have clear “line of sight” between my own to tell us about their execution discipline. tasks and the organization’s most important goals – 9% Figure 1 details the magnitude of the execution gap. If the typical organization is like this, execution is obviously at high risk. one thing at a time. Nevertheless, we ask Scoreboards motivate people. The our people to “multitask.” The result is scoreboard must be created by and be visible The execution gap is a human issue. It frustrated workers and poor results. The to everyone. One firm I am acquainted with has little to do with market strategy or leader’s job is to make crystal clear those helps people save money on prescriptions. technology, or with any of the issues that few goals that are “wildly important” and Their goal is to save their customers a typically occupy the time of executive get everyone focused there. certain amount of money this year, and leadership. It has to do with people. Either every day they post their progress toward they execute, or they don’t. To close the Some objectives are clearly more critical this goal. No one in the firm questions what gap, organizations must practice the four than others. As I watch the security is “wildly important,” because together they disciplines of execution. people at the airport process passengers, have decided what it is, and they never take I am impressed with their courtesy and their eyes off the score. Focus On the Wildly Important Goals efficiency. But if one terrorist gets through People are genetically wired to focus on the system and disaster results, the courtesy, Translate Goals into Action professionalism Goals that have never been achieved require and efficiency behaviors that have never been tried before. will count for little. That’s How often do leaders announce a new because these goal without giving thought to how it will YOU SELL CARS. workers have one wildly important be executed? One company I know of announced that every store in its retail chain was to increase sales revenue by 15 percent WE HELP YOU SELL goal that must that fiscal year. Store managers and staff be achieved. accepted the goal, but had no notion of how MORE CARS. How crucial it to execute. Leaders must involve the front is, therefore, line in defining what everyone must do that everyone differently to accomplish the new goal. agrees on what is “wildly Engage the Team Weekly important” and It isn’t enough to meet once a year and focus on it. decide what the work group is going to do. In the most effective teams, people meet Create a weekly to account for their commitments, Scoreboard examine the scoreboard, resolve issues and People can know decide how to support one another. Former the goal, but if Mayor Rudy Giuliani, widely credited with Get a handle on your electronic marketing they don’t know the renaissance of New York City, met with IMN Loyalty Driver. the score, they daily with his staff to do these things. Re- are working engaging less than weekly allows the team in the dark. to drift off course and lose focus. Imagine going to a football Originally ran in CLO Magazine. game without Innovative e-newsletter solutions. a scoreboard. Stephen R. Covey, Ph.D., is co-founder of 866-964-6397 Everyone must FranklinCovey, and is the author of The 7 know the score Habits of Highly Effective People. He can all the time to be contacted at 866.892.6363, or by e- know what to do. mail at
  5. 5. TomHopkinssales&trainingsolution CLOSING THROUGH THE BUYER’S EYES Years ago, I spoke Always keep in mind that people don’t just your current vehicle? Is that an important at a banquet for buy your vehicles. They buy the dealership aspect of your decision today?” top salespeople. Before I gave my talk, reputation. They buy the brand credibility. the speaker introduced someone in the And, they buy you. They need to feel that Do you see how these types of questions audience and said, “This man earned you’re a product of the product — that you help you mentally filter through the twice the national average in sales last truly believe in what you sell. hundreds of vehicles on the lot? Even if year….” The speaker’s manner suggested Jim Martin comes in saying he wants a new that it was quite an achievement. But, People will say “yes” to you based more on 4-wheel-drive truck, you may learn that considering the large number of successful your conviction and enthusiasm than your Jim’s wife is expecting their first child soon sales professionals in the room, that feat product knowledge. If you don’t truly love and that they’ll need an extended cab at wasn’t all that impressive, so everyone the vehicle brand and models that you sell, the least — something young Jim may not craned their necks and looked at the man you need to either fall in love with them or be thinking of because he’s always had a in puzzlement. The next words out of the find another brand to represent. Your lack single-cab truck and likes them. speakers’ mouth made all the difference. of love for what you do will show through He said, “and he’s totally blind.” and instill something other than confidence Mary Porter may come in wanting in your potential buyers. something sporty, but in drawing her out, There was a burst of applause. Then, the you learn that she has two big dogs that speaker said, “I’m sure many of us are Don’t Tell Them What You Like she takes along on trips out of town on the wondering how you got into the top third in About the Vehicles weekends. In that case, the definition of sales achievement with your handicap.” Stop turning potential buyers off by saying, “sporty” just went from being a two-seater “What I like most about this feature is…” to something larger, didn’t it? “Wait a minute,” the blind man replied, “I As I said, they don’t care what you like. don’t have a handicap. I have an advantage They need you to care about what they like, You are an expert advisor in the automotive over every other salesperson in my field. I and want and need. industry. When people talk about their have never seen a product I’ve sold, so I have needs, you think solutions. Most of to close through my buyers’ eyes. What I do The only way to learn what their needs your potential clients will make vehicle is what all of you sighted people could do. are is to ask questions. Typical automotive ownership decisions once every two or And you’d make more money if you did.” salespeople think their job is to capture the three years. You are involved in those clients when they walk in, ask generally decisions daily and know so much from He was 100 percent correct. You must see what they’re looking for and quickly start the experience your clients have with their the benefits, the features and the limitations walking in the direction of those models. vehicles. You think beyond basic wants and of your vehicles from the buyer’s needs and go deeper into what’s truly going viewpoint. You must weigh them on their Champion automotive salespeople don’t do to be the best choice. scale of values, not yours. that until they’ve gotten the buyer talking about what their new vehicle needs to do There’s an old saying that “Knowledge Get Yourself Out of the Way for them. The only talking you should be is power, when properly applied.” Keep Potential clients don’t come to your doing at this point in the sales cycle is that in the forefront of your mind when dealership to find out what you like. They asking questions. you speak with potential buyers. The more don’t know you and don’t care what you knowledge you gain about their needs, drive — unless you drive a competitor’s “What brought you in to our dealership wants, desires and financial situation, the vehicle. If you do, don’t mention it. It will today?” more likely you are to help them make a make them doubt your sincerity as you tout “Are you interested in a new vehicle, or wise decision about their next vehicle…and the benefits of Brand A when you’ve just were you thinking of something used?” the one after that. told them you drive Brand B. Also, if you “What type of driving do you do? Mostly would drive a Brand A vehicle but can’t in town? Or longer highway driving?” World-renowned master sales trainer Tom afford it, don’t tell them. They’ll wonder “Do you typically carry a lot of cargo? Or, Hopkins is the chairman of Tom Hopkins just how good a salesperson you are. Don’t are you more likely to have a car full of International. He can be contacted at do or say anything that might raise their passengers?” 866.347.6148, or by e-mail at sales resistance. “What type of gas mileage do you get in 10
  6. 6. featuresolution 3. Implement a Live Chat Service management, but also can take advantage they can reach the Internet. These tools to Build a Stronger Bond with of discounts by consolidating their use Sales Force Automation (SFA) and Dealership Customers marketing buys. The right dealership Customer Relationship Management More than 30 percent of the Internet choice for a provider would be the vendor (CRM) functions to help take full leads go unanswered by an average that can deliver an entire digital marketing advantage of their prospect and customer dealership and 23 percent of online car system, not just the Web site with a few databases. shoppers took their business to a different add-ons. When dealers purchase a holistic brand due to unresponsiveness. To take system provider, they can ensure that all 9. Measure Your Advertising advantage of these opportunities, dealers of the prospect and customer management Many dealers are enhancing sales need a cost-effective way to keep in bases are covered, including the ability to performance and reducing cost per unit touch with consumers. With a Live Chat find consumers, bring them to the Web site, sold by measuring the effectiveness of their solution, customers get the same engaging convert them into customers and continue advertising campaigns with innovative experience online as when they visit the to market dealership services to them in a call tracking and monitoring tools. This dealership. With most services it is a tight closed-loop process. Another aspect priceless information allows dealers matter of simply adding a “Chat” button of a successful vendor choice is how the to clearly see which ads are the least LarryCochran to a variety of areas on the Web site, provider can integrate all of the customer productive and which ads generate the and it is ready to go. In many solutions management interactions including most leads for the money. They rely on the “chatters” are part of an outsourced phones, showroom walk-ins and service this intelligence technology to powerfully dealership showrooms, completed lead solution so dealers can establish this special drive ups. Finally the right provider will manage leads by utilizing a unique toll-free forms on dealer Web sites, and telephone communication channel without adding the help provide the tools and consulting that number with each targeted ad campaign calls into business development centers. cost of additional staff. enable a strong follow up. Today, many of that allows them to analyze results and And best yet: These leads belong only the consumers who provide information micro-manage information about each to the dealership doing the advertising, 4. Use eNewsletters to to dealers through the Web site are never initiative. and are not shared like those purchased Communicate Your Sales and contacted, leading to significant lost from third-party lead providers. In other Service Specials — and Cut Print opportunities. The implementation of any one of these words, display advertising generates good- and Mail Costs ideas could have an immediate impact on quality leads from “in-market” consumers eNewsletters deliver increased awareness 7. Consider Your Search your costs. By considering all of them, interested in what your dealership has to that helps in developing a relationship with Engine Options dealers can build a successful formula offer, not some generic inquiry made by a consumers, as well as providing them with Search is no longer a generic, one-size-fits- for weathering these current challenging consumer who doesn’t really know what current and relevant information that will all offering. For example, there is Search selling conditions and setting up their they are looking for or who they want to drive more dealership revenue. Monthly Engine Optimization (SEO), in which dealerships for future growth. buy from. With the killer combination of content can include OEM-specific news, the dealership tailors its Web content to the right message, the right placement, and the right marketing strategy, automotive vehicle-relation information, service improve rankings in key search engines. topics, lifestyle articles, regional news, There is also Search Engine Marketing Larry Cochran is the vice president and retailers make every online ad initiative general manager of digital marketing pay off with increased sales and profits monthly dealership specials and dealership (SEM), in which special locations can for BZ Results. He can be contacted at in all areas of the dealership. The power custom articles. be purchased to improve the number of 866.456.1296, or by e-mail at behind the optimal digital advertising consumers seeing the dealership links. solution includes a premier advertising 5. Move Functions Such as Credit The right combination of SEO and SEM network, which encompasses hundreds Approval to the Web can strongly improve the traffic flow to According to a recent study, nearly eight to use your Web site as a profit center for of popular Web sites to accomplish the In this economy, many car purchasers are dealer Web sites. The right SEO provider percent of money that a dealer spends is all areas of the dealership. State-of-the-art following: struggling to get credit, but there is still a also utilizes the most advanced tools in used on marketing and advertising costs. Web sites include virtual salespeople to • Provides maximum exposure for your large group who can qualify. By utilizing the automotive industry including It is more critical than ever that these costs assist navigation through the site, online dealership a guided online credit application and rules-based management (day are properly managed and used in a way inventory that delivers a comprehensive • Generates high lead conversion rates pre-approval process for online consumers, parting and ROI Bidding), that will help win sales without losing your description of all available vehicles, and • Provides geographic and demographic dealers can improve F&I productivity click fraud monitoring overall gross. the ability to sell parts and accessories in optimization while also generating qualified leads. as well as aggregate real-time with secure shopping carts. • Guarantees premium placement on Some of the features of a successful online campaign creation, For decades, dealerships used a the sites your shoppers visit most finance site include a “virtual presenter” bid management and combination of radio, TV and newsprint to 2. Begin the Transition from frequently that guides customers through the process reporting. communicate with consumers. Today, many Traditional Marketing Sources to of completing an online application from dealerships are still reliant on these media Digital Advertising Every dealership must spend money to sell the convenience of their home, utilizing a 8. Improve Lead to deliver their message. With the advent of A study by Capgemini showed that 83 cars, and that’s why successful dealers are secure environment for sensitive customer Management digital marketing, and the challenges of this percent of “in market” car shoppers visit realizing that online marketing provides the data, and a customer account that saves Using the Web current selling environment, these methods the Internet first to research vehicles. In best return on investment and are shifting the finance application for review, edit or To better manage are simply not enough to lead to successful the age of the Internet, online advertising budgets from traditional media to online withdrawal. Internet, phone selling. Here are nine ways where the use clearly can broaden a dealer’s sphere initiatives including digital advertising. You and showroom of digital marketing can help dealerships of influence, and go far to attract and do not have to increase your advertising 6. Consolidate Your Vendors leads, dealers can better spend their limited dollars. engage consumers the way traditional budget to take advantage of digital Many dealerships use as many as six or implement Web- advertising vehicles — newspaper, radio advertising — you just have to allocate seven different vendors to manage their based applications 1. Improve Your Web Site with and TV — cannot. Research continues your current budget in the areas that will customer communications initiatives. that allow sales teams Impactful, Interactive Content to prove that digital ads consistently draw the most attention to your Web site By consolidating to just a few providers, to access leads and There are many options available today generate the highest conversions into and leads to your store: the Internet. dealerships not only save time in vendor reports from anywhere 1312
  7. 7. PaulCummingssales&trainingsolution LOSSES INTO LESSONS Four Fail Safe Strategies This article is written eventually it will subside and something after the loss, do something that stokes specifically for individuals who have a else will take its place. If I quit, however, it your emotions in a positive way and then burning desire and a willingness to do the lasts forever.” move on to Step Two. work in order to achieve at the ultimate — Lance Armstrong level. I always laugh when you see a Reduce the Loss to Writing speaker ask this question “How many Now it is time to explore the “Loss to First things first, you need to go purchase a of you really want to win?” I’ve often Lesson” formula for success. I have shared hardcover journal, unless you are organized wondered if the speaker really expected this with many people and I will tell you and savvy enough to do this on your someone to stand up and shout out “Not only two percent take massive action and computer. Any time you experience a loss me, man — I want to lose!” So, let’s accept utilize the process. I am very proud of this of any kind, a setback or disappointment, that we all want to win. That’s really select group of people because they are the at the end of the day write a one-paragraph not the point, in my opinion. The key is students of mine who have accomplished explanation of what happened. The key is to simple: Wanting to and being willing to and miraculous achievements in many areas of be brutally honest with yourself about what actually doing what you must in order to their lives: happened and why. Our goal is “to kill the be the best requires completely different • A struggling salesperson on the verge loss monster while it is little” and actually levels of commitment. This article is about of quitting who now owns his own turn the experience into a learning event. what you do after your losses. How do you dealership respond? • A dealer who had rampant turnover Question Up The Event because he was abusive to his people The next part of the formula is to answer “The key is not the will to win... everybody who now owns multiple franchises and these questions about the events or has that; winners know it is the will to has garnered the love and respect of his circumstances that created the loss, setback prepare to win that is important.” people or disappointment. What did you do well — Bobby Knight • Fathers and mothers who had let their this time? What will you do differently next careers rob them of the joy of being time in order to produce the desired result? Now it is time for some straight talk from real parents to their children, who today What will you never do again in order to me directly to you. Are you happy where have reconnected with their families produce the results you desire? What is you are in your career today? Are you and found immense happiness. the most important thing you have learned achieving at the level that fulfills you from this experience and how will you use personally? Do you feel you are coming This formula works if you follow the steps it to produce better results in the future? close to reaching your personal potential? consistently and take action. Remember, when you ask better questions, Do others look up to you and admire you always get better answers. whom you are and what you do as a sales “Action may not always bring happiness, associate, sales manager, parts counter but there is no happiness without action.” Take Massive Action Now associate, technician, general manager — Benjamin Disraeli From the empowering questions and or dealer? Are you considered a leader at supporting answers you will find pearls your dealership? What about in your state, Loss To Lesson Formula of wisdom. These pearls of wisdom will region, country or industry? How far up the allow you to reduce your future mistakes ladder of success must we climb before you Change Your State and avoid the pitfalls that created previous become unnoticed? How far must we take Anytime we experience a loss, setback or losses. Unlike most people, you will actually the questions before your impact becomes disappointment, it is only natural that it benefit from your losses because you will so distant no one even knows your name? will affect our outlook and our emotions see the power of the lessons contained These are tough but fair questions for those in a negative manner. For this reason, it is within each loss. The key is to take massive who want the highest level of success critical that we manage our state so we can action on what you learn from the loss. possible. One more question: “Can you live be more effective and efficient. Negative with the pain of not fulfilling yourself?” emotions rob us of our capacity to perform Paul Cummings is president and CEO of at a high level. The key is to interrupt the Paul Cummings Enterprises. He can be “Pain is temporary. It may last a minute, negative pattern and change your state into contacted at 866.865.3171, or by e-mail or an hour, or a day, or a year, but a positive emotional platform. Immediately at 14
  8. 8. RichardVanderport PaulSnidersales&trainingsolution sales&trainingsolution CHANGE – THE ADDITIONAL BUSINESS ONLY THING THAT WITHIN YOUR DEALERSHIP? REMAINS CONSTANT Now is a good time to The opportunity for exceptional returns has By the time you read bank, your chances are much greater. realize that there is an never been greater. The credit-impaired this, many changes additional business within your dealership sector of our economy is growing at a will have recently taken place: our country Leads that is mostly untapped. If not now, when is record pace. The Washington Post says that will have a new Commander In Chief, Stop buying from too many sources and a good time to bring additional financing to personal bankruptcies increased 40 percent new lawmakers will have been elected, the stay with industry leaders. When you work a new level? last year, and this year likely won’t be any NASCAR season will be over and hopefully with too many providers, duplicates will better. our country will be well on its way to a show up simply because consumers will The realities car dealers must face during full recovery. One thing will not change: go on multiple sites in hopes of getting a the next several years will force them The traditional secondary lenders are gone. Thousands of prospects will continue trying loan. Consider “in the market” leads that into diversification. Remember when the Plenty of new car buyers are getting turned to arrange credit in hopes of buying another can be ordered with specific criteria and finance and insurance department was a down who would have been an automatic car. During the third quarter of 2008, the score ranges that fit your finance companies new idea? “Unheard of — it will never approval months ago. Where does that number of applicants has really not gone parameters. work!” Did you ever hear those statements? leave the credit-damaged customer? These down; the number of approvals in all credit and the vast majority will need financing to people don’t want to walk to work, and categories, however, has. Cash Is King get it. All your customers want to improve Now the F&I department is a constant don’t want to take the bus, even if they Stop being afraid to ask for cash. If a deal their credit at the time of sale. When the profit center. That was an additional step could. There is a void, and you can be a What does all of this mean to automotive is structured on the right car a customer can customer cannot buy from your dealership, for your company and added additional part of a solution —instead of having an industry professionals? It means that hard- afford, and the finance company can see that they go somewhere else and get a vehicle. income to your dealership. additional void within your dealership — if working Americans still want and need good the applicant has made cash investment, it You don’t have to say goodbye to all your you know how to attack it. transportation, and we have to stop talking becomes much easier to gain an approval. credit turndowns. Who should get the So, what is the next step in the financing about all the negative and get back to basics additional business? You or someone else? world? A finance company within your You know what it takes to open a new car of selling cars. This is not the first time Buy Smart The biggest fear most dealers have is dealership. dealership: a great facility located on the credit has been tight, and for sure it will not When purchasing inventory, look for how to set up and stringently follow the right real estate, plus capitalization to run be the last. Just because it is tight, however, vehicles that work for your finance correct processes and procedures that avoid Dealers who are proactive will likely find the store right — you need a lot of money doesn’t mean that there is none available. companies and offer reasonable payments disaster and allow success. Dealers should a way to succeed. Those who wait for new to get into business. A “buy here, pay here” Below are some tips to help navigate for customers with all types of credit history. have that fear, they should know that cars to come back to previous levels may dealership can be opened for approximately through the troubled waters of automotive Remember that high payment does not “winging it” won’t work, and they should have a long wait. So now is the time you $750,000, with some of that investment sales and finance. always equate to high gross! be prepared to seek experts who know the should consider an additional business in dedicated to acquiring used car inventory. best practices and proven methods. your financing department. Consider New Finance Sources Positive Advertising Ask any dealer today, and they’re tell you Now is the time to look at every available All advertising should let customers know The risks can be high, and a dealer needs Per NADA, average profit in a new car that new car dealerships are dependent finance company in your market. Yes, you have credit available for all types of to make sure he or she has a system that is dealership for 2007 was 1.5 percent of on their manufacturers. Profitability is discounts may be high, along with interest buyers. This sends a positive message at a proven, and then make sure it’s followed sales. Yet many well-run successful “buy directly affected by inventory availability. rates. If you can pick up extra sales by time when consumers are being told by the to minimize this risk. Going forward, some here, pay here” dealers returned many Non-conventional financing dealers are adding companies that will work with media that credit is not available. Make sure will take a new fresh look at this part of the times that percentage. not accountable to a manufacturer and are various customers, though, it’s win – win. you put your toll-free loan by phone number business. Will you? free to specialize in their own segment or on all ads so calls are not missed overnight. Many franchise dealers are revisiting segments of the used car industry. What Richard Vanderport is the president of Over Advances Are Gone what they previously decided against: you stock can be based upon customer Lender to Lender Franchise System. The days of finance companies advancing Look For Ways To Get Deals Done diversifying into additional financing via demand, not quotas. He can be contacted at outrageous amounts are quickly becoming Stop thinking about how many are turned the “buy here, pay here” non-prime finance 866.455.1671, or by e-mail at a thing of the past. We enjoyed that while down; start looking at ways to get more business. All of your customers want to get a vehicle, it lasted, but now is the time to get realistic approvals and deliveries. Ask for cash, and realize that finance companies can no co-maker, pick the right car that puts your longer afford the losses as a result of over finance company in a good position, make advancing. terms attractive and, finally, learn enough about your customer’s credit history so you Present an Application can present reasons why your underwriter That Makes Sense should consider some type of approval. Slow down, go back to conducting proper interviews, build a solid case as to why the In closing, we all know that 2008 was, loan should be approved, structure deals on at best, a difficult year; there remains, cars the customer can afford plus deals that however, a market to sell vehicles and offer your finance company a comfortable dealer professionals who work smart position. and are not afraid to change. These professionals will continue selling as they Overcoming Negative Equity have for many years. The best way to overcome negative equity is this: Right Car, Right Bank with Right Paul Snider is the CEO of Voisys. He can 17 Customer. When you put a customer in the be contacted at 866.492.9209, or by e- 16 right car and structure the deal with the right mail at the #1 sales-improvement magazine for the automotive professional
  9. 9. MattBakersales&trainingsolution OUTWIT, OUTPLAY AND OUTLAST THE CURRENT MARKET Unfortunately, the nothing you can do to drive traffic or get task, there are times where it is a necessary ups and downs of the deals bought isn’t the mindset that will step. Rule # 42 describes this best by market have become all too familiar these keep you charging forward. You get out of stating: It’s better that one person perish days. As the media continues to hint at it what you put into it. If we opt to believe than the whole team go down in flames. the possibility of recession, the American that everything’s impossible, we’re going consumer (and in turn the American dealer) to be in for a bumpy ride. Instead, take the It’s Got To Be Guaranteed have been coerced into tightening their road less traveled and put faith in what While there are infinite ways to reach spending until things “get better.” Yet the seems to be impossible. consumers in the new marketing age, not truth is that no one really knows when all opportunities or ideas are created equal. the outlook will improve and consumer Believe it or not, there’s opportunity out purchasing will strengthen. there. The trick is that you have to look a Rule #71: Ideas don’t work; people do. little harder these days to find it. Rule # Look to partner your sales and marketing To be honest, this market has placed the 26 touches on this point by stating: If the efforts with companies that are willing to American public in a real life Survivor competition is doing it, do the opposite. put their services on the line with money- situation; complete with challenges As companies decrease their advertising back guarantees. which test the patience of each American (or decide to close their doors), coveted consumer and business owner. So how does market share goes up for grabs. For those These guarantees not only create security one outwit, outplay and outlast when things dealers who have embraced the power of a for your financial investment, but also act appear to be so dismal? It’s all in how you positive attitude, this provides an excellent as a key differentiator between run-of- look at it. opportunity to try a different marketing the-mill sales and marketing companies approach and capture competitor’s market and those which are truly confident in the Over time, my company has come to share when they are defenseless against it. solutions they provide. live by 151 different rules which help us overcome the challenges we face on When Only the Best Will Do In general, guarantees act as a win-win a daily basis. Given the current state of It’s no question that your best sales people for the dealer and the marketing company. the economy, I have singled out a few are your greatest asset. Yet when dealership Dealers gain return on investment (or key rules below, which have helped us traffic begins a steady decline, how do you their money back), while the marketing continually work toward success. hold on to your MVPs? company gains the opportunity to put their proven programs to work, generating Attitude Check Don’t let yourself give up and don’t let movement within the dealership which in We all know that attitude is everything, and your team give in. It’s true that things turn creates improvement overall. in today’s market, this couldn’t be truer. aren’t as ideal as they used to be, but it is With the continual outpouring of negative the manager’s responsibility to keep their In The End… media, it’s hard to separate yourself from sales force motivated, especially when In the long run, the market’s effects are the downer mindset that seems to be an times are tough. only as bad as you make them out to increasing trend. be. Constant negativity will produce no Rule #49: Movement equals positive results. Consider the effects of a Rule #45: The only thing you can control improvement. Consider looking into negative attitude on the performance of is your response. In this case, one person or “momentum boosting” advertising your store. Trust in guaranteed advertising business cannot control the current market campaigns aimed at driving traffic to your to make your investments worth while conditions. However, we can control the store. The burst of activity these campaigns and you’ll see results that will keep your way we respond to them. Negativity is provide will reignite some excitement on greatest assets (your people) working an infection on the verge of an outbreak. the sales floor, which is a step in the right toward success. Protect yourself and your staff by refusing direction when influencing the attitude of to give in. your team. Matt Baker is the vice president of sales Rule #23: Speed of the leader = speed of Rule #20: When you want it more than for G&A Marketing. He can be contacted the team. If the speed of the leader equals they want it, it is time to let them go. While at 866.618.8248, or by e-mail at the speed of the team, believing that there’s eliminating salespeople is often a difficult 18
  10. 10. JohnBrentlingerleadershipsolution WIN BY PUTTING YOUR PEOPLE FIRST We are now down all, they’re just salespeople, they’re just must fire someone, fire all the managers to the last line of managers, they are expendable. Remember, who are jerks with your people. A jerk in defense in making dealerships profitable. they’re a dime a dozen, as soon as the little management or leadership can ruin your Manufacturing is down, the market is blip in the economy is over, you can go get dealership. Stop hiring jerks. Stop letting soft, traffic is sporadic and buyers are you some more salespeople and managers. jerks manage your people. Stop looking the waiting to see how low prices will go. If They of course will get the same speech. other way. Stop saying, “But he’s good for you’re struggling with what to do or which “If you are loyal, if you are committed, the bottom line.” Screw the bottom line, direction to take, I propose that that you if you are serious about coming to work because you won’t have a bottom line to Exclusive Territories Being Assigned Now For All Inflatables have one of two options. The first one is for my dealership, if you put your family worry about if you keep letting jerks run disastrous; the second one will work, if you in it’s proper place, dealership and work off your good people. have the courage and self-discipline to see comes first, you will be rewarded later.” it through. Yeah, great speech, that’ll work, should have done it six months ago. Know what? The days of terrible management and poor leadership are about over. How you treat FREE Giant 30 Foot Long Carnival Cruise Ship or Las Vegas Option Number One: Panic. Look back at the last recession, see You’re a disaster and what goes around comes around. That’s option number one. your people over the next 18 months will determine who stays in business and who Sign Inflatables & Banners with minimum order! how long it lasted, how deep it went and does not. Loyalty in a dealership works what cuts you had to make to get through. Option Number Two: two ways. Get to know your people. Learn Then, just do what you did the last time. This is your last and best option. All the how to help your people. The job of every Start with the manager who has been with you the longest, has been the most loyal, foundations we thought would always be around are gone. All you have left are your leader is to make sure that your people reach their full potential. Learn as much WE’RE SENDING YOUR CUSTOMERS TO LAS VEGAS! and decide that it is his fault. Fire him. people and your customers. That’s it. You about your people as you want your people Choose One Of Three Exciting Vacations! Wow, the bottom line looks better already. can’t count on anything else. You can’t to learn about their customers. The market Then go to the next manager who has been count on your advertising, your Web site, your Internet leads, your walk-in traffic, for good salespeople and good managers is shrinking fast. Find a way to train your *3 day Las Vegas Getaway for two (including flight) just as loyal, worked just as hard, given the your out-of-town closers, your huge sales, managers to get the most and best out of *5 day Cancun Resort Vacation for 2 best years of his life to you, sacrificed time your consultants or your location. All you the people who have been loyal to you for with his family, his wife and kids because have left is your people. all these many years. Cut anything and you told him that was necessary for him everything but your people. Put everything *5 day Carnival Cruise for 2 to advance his career. Fire him too. Looky You want to stay alive? Then put your on the block except the honesty, loyalty and here, your bottom line is looking good. people first. Your managers, your dedication of those who have spent most of Keep paying yourself the same money, of salespeople, your office people, your their adult lives in your service. Take care course; the only trick here is to make the techs, your detail, all of your employees, of them, teach them, be patient with them. bottom line look good. your people — put them first. You want Train them by example to serve better, help your people to put their customers first them become all they can be. If you take Then start with the salespeople. Fire don’t you? You want your customers to be this option, your bottom line will take care the ones you were tired of anyway, you treated like family, don’t you? How in the of itself. Put your people first, they in turn know, the veterans who just wore out their world do you think your people can put the will put their customer first. You can be welcome, the ones who just don’t have customer first if you don’t put them first? proud of this option, and this option will the fire they did 20 years ago. Don’t let keep you in business. personal feelings get in the way. Don’t You have only two things to sell — the think about all the plans in their life which product and the experience of buying the didn’t happen because they put you first. product. If you want your people to give Dealer Cost All that matters here is your bottom line. your customers a good buying experience, John Brentlinger is a sales and Don’t worry about the lives and families of those who have given their life and times to help you get where you are now. After then your people must first have a good experience to share with their customers. And that is your responsibility. It is the responsibility of your managers. If you management trainer, executive coach and author. He can be contacted at 866.859.6504, or by e-mail at $ 159 Minimum order required Point of sales and marketing material FREE on your 1st order! Call for your free information package:22 1 877 993 6835