A SPECIAL ISSUE NADA SPECIAL ISSUE NADA SPECIAL ISSUE NADA SPECIAL ISSUE NADA SPECIA .biz Earnhardt.com Schomp.com ParagonCars.com DickHannah.com HerbChambers.com RedMcCombs.com HouseofCourtesy.com DaveSmithMotors.com Tasca.com Sheehy.com January 2005 756 South 1st Street PRSRT STD Suite 202 US POSTAGE Louisville, KY 40202 PAID LOUISVILLE KY PERMIT NO 879 a division of Systems Marketing, Inc. www.autosuccess.biz
• BZ Results 3124 BZ Results is a digital marketing & training company that has a great new system that helps dealers sell & service more vehicles proÞtably. TOP 10 BZ’s clients include United Auto Group, Group 1, Herb Chambers, Red McCombs, Sheehy, Paul Miller, Larry Miller, Courtesy Chevrolet, BEST OF THE BEST Tasca and others. BZ dealers are selling 100-700 incremental units a month from this revolutionary new system. To get a free 180 second NADA tour of this new system visit: BZResults.com 2005 • J&L Marketing 4731Established in 1991, J&L Marketing is without equal when comparing automotive direct marketing companies. Their philosophy is simple - there are only three ways togrow your dealership: 1) Increase your number of customers, 2) Increase your average gross per deal and 3) Increase the frequency of repurchase – get more residualvalue out of each customer. With a customer base of over 6,000 dealers and managers nationwide their ground-breaking J&L Marketing Growth Strategy™ is producingstaggering results and has eliminated the number one challenge for most dealerships - trafÞc. • Dealix 5415In 2005, Dealix is expanding their quality and service initiatives, continuing to help dealers sell more cars, more efÞciently. Their combined efforts with The Cobalt Group willbring an even more dynamic product to their customers to increase sales and help improve dealership efÞciencies. Dealix has been rated the number one lead provider instudies by J.D. Power and the Dotcominsider. Their goal is to continue to win over customers with high quality leads and superior service. The Dealix Quality Team enhancedtheir lead scrubbing and call veriÞcation technologies to ensure customers receive leads only from the most serious car buyers. Dealix is committed to provide even betterone-on-one service and has expanded it’s Lead Acquisition Network, adding hundreds more of the best auto sites on the web. • Autobase 4819Autobase, Inc. has provided the automotive retail market with premier customer relationship management (CRM) solutions since 1988. Autobase Sales Center™, the ßagshipof the Autobase suite, is now in its sixth generation of development, boasting 17 years of successful implementation in dealerships of every demographic. Over 15,000 autoprofessionals go to work every day and use Sales Center™ to sell more cars. Newly-released and already manufacturer-endorsed for it’s innovative approach to businessdevelopment, the Autobase Loyalty Center™ is the most recent addition to their suite of solutions. Their rich history, strong reputation, comprehensive industry knowledge,and pioneering work in feature-rich CRM and BDC technology have long impacted the bottom line for proactive dealers nationwide. • TimeHighway.com 4430TimeHighway.com is the premier, on-line solution for service department appointment scheduling, allowing dealership customers to make a conÞrmed service appointment24 hours a day, seven days a week. BeneÞts to the dealership include: replacing telephone-based scheduling with Internet technology that enhances the effectivenessand customer satisfaction of the dealership, reduces in-bound telephone calls and drives trafÞc to the dealer’s website. Customers prefer the ease and convenience ofthe Internet to do their banking, shopping, make travel arrangements, etc. and now with TimeHighway.com, they can schedule their service appointments online, no morewaiting on hold to make an appointment. • The Joe Verde Group 931JOE VERDE • Your Training Partner Since 1985, the Joe Verde Group has been helping dealerships improve their sales and gross by providing the best sales and salesmanagement training in the automobile business. Joe Verde’s up-to-date sales training helps dealerships implement effective sales training that works to build a solid salesteam and long term, satisÞed customer base. Joe’s management training addresses today’s challenges and tomorrow’s needs by helping dealers build top performingmanagement teams. The bottom line… the Joe Verde Group provides a dealership with clear-cut solutions that boost their sales, proÞts and customer satisfaction. • ProResponse 3058ProResponse, Inc. CRM with proven results, represents nearly 300 dealers nationwide. Their services are geared toward total showroom control with ProScan® TouchScreen driver’s license reader, prospect tracking (phone, ßoor and Internet), and sold customer follow-up for Þve years. ProResponse is a service company assisting dealerseach day with database management, data cleansing, data mining, and effective target marketing. They are e-mail enabled and FTC compliant, running prospects andcustomers against the “Do Not Call” list daily. They provide on-site training and monthly service visits “In Your Dealership”. Their programs are also written in Spanish andFrench. They seamlessly integrate with Who’s Calling, Call Source, Call Bright, Call Command, EPencil and many others. • American Auto Exchange 5755Founded in 2001, American Auto Exchange is revolutionizing the way dealers conduct business by Þnally assembling all the pieces necessary to running a streamlined, hightech used car operation. Through the use of the aaXchange tools, dealers are dramatically improving the way they operate their used car departments.American Auto Exchange works with thousands of dealerships across the United States who have chosen to utilize the American Auto Exchange Real Time Vehicle TradingNetwork, the aaXchange proprietary Vehicle Management System (VMS) and a new integrated intelligent vehicle launch product with Ebay. • Ultimate Warranty Corp. 1411Ultimate Warranty Corp. provides leading-edge service contracts and ancillary F&I products. More than 7,000 dealers have recognized the advantages and have beneÞtedfrom selling Ultimate Warranty Corp. products. Ultimate’s package has proven that it can propel its client base to the front of the pack in terms of quality, proÞtability,compliance, customer retention, and CSI. Stop by the booth, and Ultimate Warranty Corp.can show you how they are making a great thing even better in 2005. UltimateWarranty Corp. has some great new things to offer to its clients at no additional cost. Ultimate Warranty can truly show you how to do more with less. • The WolÞngton Group 527The WolÞngton Group produces high performance sales events on behalf of new car dealerships across the country, with no outsourcing or subcontractors. The Þrm maintains longterm relationships with dealerships, providing marketing territories and strategies that help The WolÞngton Group dealers outperform their markets. A WolÞngton Group producedevent brings an atmosphere of fun and excitement to the dealership, creating a great buying experience for the consumer and a positive selling experience for the dealer’s sales team.Harry WolÞngton, President, provides his insight and experience to auto dealerships through his six sales teams. “Being a small company, we are more focused on each individualevent. Our dealers get an attention to detail from our staff paralleled by none.” It’s this philosophy that has earned The WolÞngton Group a spot in this year’s “Best of the Best”
NADA 2005 TOP 10 BEST OF THE BEST S N A E L R O W E N E ✴Ernest N. Morial Convention Center S BC D E F G H N W
58 Cars Sold Last Month with Dealix LeadsMagnussen’s Dodge Chrysler JeepMagnussen’s Dodge Chrysler Jeep Quality Leads | Superior Service | Dealer Control Features “That’s why I get my leads from Dealix. When it comes to selling to Internet customers, my team goes beyond our immediate market area. In fact, we pull customers in from as far as San Francisco. With Dealix, we can get leads from a wide mile radius, or we can target specific Zip codes. The choice is ours. No other level of control and this many sales.” Steve Jackson, Internet Fleet Manager, Magnussen’s Dodge Chrysler, Jeep of Auburn, CA TOP 10 BEST OF THE BEST NADA 2005 Dealer Control Features Dealix AutoUSA Autobytel Territory ControlSM Standard N/S N/S Choose multiple Zip Codes for each franchise. Territory ControlSM Target your ideal sales territory – choose any Standard N/S N/S mile radius. Inventory-Driven Lead ControlSM Standard N/S N/S Choose leads for the models you want to sell. N/S = Not Standard July 2004 Sales Start selling more cars today! Call Dealix now. (866) 253-5125 or visit us online at www.dealix.com.
TOP 10 Secrets of BEST OF THE BEST NADA 2005 Dealership Overachievers – No One Else Will Tell You: • What the best “response generating” ads all have in common. • The three most important goals you will ever set for your dealership. • How to condition your current customers to buy from you more often. • How to create advertising that attracts quality customers who negotiate less. • How to out-market your competition and dominate your market. • What the ultimate goal of marketing should be today. • How to create advertising that actually increases your closing percentage.Special Free Offer: Call 866.856.6782 now and ask for Sarah to receive your free copy of the J&L MarketingUltimate Growth Strategy, featuring an actual case study of Johnson City Honda.You’ll discover the exact growth strategy and marketing plan created by J&L Marketing and used by Johnson CityHonda and read how, in just their ﬁrst four months, they increased sales by 65 units per month and their gross averagesby over $1,300 per vehicle!Visit us at NADA in New Orleans at Booth 4731.866.856.6782www.jandlmarketing.commove the crowd. crush the competition. count the money.
TOP 10BEST OF THE BEST NADA 2005
MEET YOUR NEW E-PLOYEE...WORKS 24/7 WITHOUT A SICK DAY OR VACATION!TIMEHIGHWAY.COM replaces telephone-based scheduling with internet technology that enhances the effectivenessand customer satisfaction of your dealership. By scheduling appointments directly through your web site, your customersmake conÞrmed appointments instantly without call-backs. TimeHighway.com puts your service department’s scheduleon your web site, making it possible to schedule appointments 24 hours a day, 7 days a week, from anywhere. INCREASED CUSTOMER SATISFACTION WITH WEB-BASED APPOINTMENT SCHEDULING IS THE FUTURE! For More Information Contact Karen Dillon at (800) 901-3054 or kdillon@TimeHighway.com 5633 Strand Blvd TOP 10 Suite 302BEST OF THE BEST Naples, Florida NADA (800) 901-3054 2005
Increase Sales by ✓ FREE Follow-up every phone call, ßoor up, be-back. Stay in contact with ALL ups! TOP 10 BEST OF THE BEST ✓ FREE Drive website trafÞc to your store and NADA track Internet prospects with Total E-mail Follow-up! 2005 ✓ FREE Direct Marketing. ✓ FREE DAILY Management Reports with REAL data you can use to manage your people, not your systems. ✓ FREE FTC “Do Not Call” daily Synchronization and Alerts to help you avoid receiving an $11,000 Fine! ✓ Follow-up every sold/leased customer for 5 years. Increase repeat sales, CSI, gain referrals and increase service trafÞc. Easy to own - On-Site Training - No huge up-front charges! Limited Exclusivity. Call us before your competition does!After seven years with ProResponse I can still say it is Going to thethe best investment we’ve ever made.-Larry Jones, Jones JunctionThe Koons Automotive Group sold over 44,000vehicles last year with the help of ProResponse. NADA Convention?-Alex Hafer General Manager Visit us at Booth 3058ProResponse is the only system I have ever used wherethe sales people are actually motivated to use it. Ournew car sales are up 21% in one year.-Jeffrey Abel President, Miller ToyotaOur closing ratio has improved 38% and our“be-backs” have nearly doubled. When we ﬁrstimplemented ProResponse we averaged 160 cars a RORESPONSE 866.596.6889month, an average month is now 350!-Kevin Cohan General Manager, Jim ColemanCadillac Inﬁniti ToyotaAvailable in Spanish www.ProResponse.com
sf special feature ChulaSchlesinger Chess Champion Has the Drive to Succeed Thousands of young difference to ensure this type of violence men and women who stops in America in his lifetime. will be graduating high school or Orrin left behind his successful car college this spring dealership, which he had owned for 10 are looking forward years. He focused every personal asset, andto the ultimate graduation present. Mom all of his savings to launch his grassrootsand Dad have promised a trip to the local crime prevention program, Be Someonedealership to pick out their ﬁrst automobile Inc. He targets crime where it begins, inupon graduation. the inner cities of our country disguised as poverty, sickness and hopelessness.There are, however, thousands more youngadults who will never realize that American Orrin has developed several mentoringdream. Their lives are starkly different from programs that teach children life masterymainstream America. Many at-risk children skills, using chess as a metaphor. Usingliving in the inner cities of our country his personal resources, dedication and CNN, Orrin and his life changing programshave no hope of ever ﬁnishing school, passion for his dream, he has touched the have been featured on Fox News, CNN,or attending college based on the current lives of more than 15,000 children and their TBS Superstation, as well as having beendeplorable circumstances in which they families. His programs have been taught in highlighted with a full-page article in USAﬁnd themselves. more than 30 schools in ﬁve states. Today. He has been interviewed and his programs featured in countless media andOne man has vowed to change this grim Dramatic changes occur in the lives of news outlets.prediction by dedicating his life to the these children when someone who is asfulﬁllment of his personal dream. Orrin powerful a mentor as Orrin Hudson appears Although the recipient of numerousHudson, a leading nationally recognized in their lives. They immediately respond to community service and leadership awards,chess champion has turned his dream of his charismatic personality and energetic Orrin remains humble and thankful formentoring children through the game of teaching style. Upon completion of Orrin’s the opportunity to serve his community.chess into a life-long pursuit. classes, reported improvements include His personal reward is in the achievement extended concentration time, improved of the children throughout the countryIn 2001, Orrin was shocked, as was the rest grades, more positive social skills and currently enrolled in his programs. He hasof the country, to hear of the incident in concern for others. Students exhibit the recently received the 2004 Martin LutherQueens, New York in which a young black ability to think more clearly and apply King Jr. Community Service Award, 2004youth terrorized the patrons of Wendy’s problem solving skills. They develop a TBS Superstation Pathﬁnders AwardRestaurant. He ultimately herded several clearer understanding of consequences and for Education, and 2004 Atlanta Bravesof them into the cooler and shot them in the ability to recognize patterns to increase Leadership Award, among others. As athe head for a paltry sum of $2,000. As a forward thinking. testament to his selﬂess achievements, heformer U.S. Air Force and Alabama State is currently the subject of an upcomingTrooper veteran, Orrin vowed to make a Dubbed the “Piped Piper of Positivity” by screenplay expected to be released next year. 10 www.autosuccess.biz
continuedWhat does Orrin Hudson have? Heart. His that results. If they can’t ﬁnd a way to win and share with your employees and theirpassion for learning, and burning concern at life, we all lose,” Orrin Hudson said. families the powerful success masteryfor the students he mentors, keeps him skills that he has taught to thousands. He isworking long and hard even when his If Orrin and Be Someone, Inc can reach a dynamic personal coach.personal resources are depleted. He needs them before its too late ... we are allour support. winners. To learn more about Be Someone Inc. please visit the Web site at www.besomeone.org.As an author, trainer, coach, educator and “It is not just about the game of chess. It is To donate, sponsor children or sponsor amotivational speaker, Orrin has amassed about the game of life, and learning how to school in your hometown, please contactsome hefty accolades. win at every level.” Orrin Hudson Orrin. Be Someone Inc. is a non-proﬁt organization.“I salute you on your quest to develop To thank you for your consideration and Orrin Hudson can be contactedyourself in order to make a difference in help with his programs, Orrin has agreed at 800.901.3057, or by e-mail atothers’ lives. We are kindred souls in that I, to appear at your dealership for no charge firstname.lastname@example.org, have always had an insatiable hungerfor knowledge and excellence. Live withPassion!” Anthony Robbins, No. 1 best DEALERS MUST BEselling author, motivational speaker“I am extremely impressed with yourorganization, especially since our youthare desperately in need of leadership andguidance. I admire your zeal, and yourenthusiasm is contagious.” Brian TracyNo. 1 best selling author, motivationalspeaker ON TELEVISION!“Orrin C. Hudson is destined to inspire See why over 100 dealers nationwide haveour youth in a positive and extraordinary INCREASED SALES MORE THAN 30% INway. I like his tough-minded optimism andcharisma.” Mark Victor Hansen No. 1 LESS THAN 90 DAYS WITH TELEVISION!best selling author, motivational speaker We produce nearly 4,000 commercials“I enthusiastically endorse the work of a year from our studios. We give youOrrin C. Hudson, founder and presidentof Be Someone Inc. and all that he does unlimited, high quality television campaignsfor our children.” Jane Fonda, actress, and promotions FREE. With computerizeddirector media buying technology, we buy television as much as 30%-40% more effectively than any“Orrin, you amazed me with your abilityto get results!” Jack Canﬁeld, author, media buyer in the nation and give youmotivational speaker UNLIMITED TV CAMPAIGNSYou can partner with Orrin and Be AND PROMOTIONS!Someone Inc. Through your tax-deductible Call for a FREE demo tape and information.donation you can sponsor a child or severalchildren today by offering scholarships tothe program. You will positively changethe life of a child forever. By partnering Larry John Wright, Inc. Automotive Advertisingwith Be Someone Inc., you will be ﬁghtingcrime, illiteracy and hopelessness forthousands of American children. “America’s Premier Automotive Advertising Agency”“The future of our country and our youth 1-800-821-5068depends on what we do today. If we ignorethis generation and allow them to continueto travel their current path through innercity poverty and despair, we are alsoresponsible for the crime and desperationjanuary 2005 11
sts ms ls ﬁs lr ZigZiglar sales and training solution Are You an IMPACT Player How can we become P = Passion modeling and our passion and our actions. IMPACT players Passion is doing what makes us feel the We must enjoy our journey, not just the in our companies, most alive!!! We must develop a passion arrival. Along the way we must remind organizations, for what we do. This passion will get us out ourselves to have fun, loosen up and laugh c h u r c h e s , of bed in the morning when we don’t feel out loud. We shouldn’t take ourselves too communities, and like it. Passion sets ﬁre to discouragement. seriously. Remember: Angels ﬂy becausefamilies? Here are a few ideas: Passion creates excitement in those around they take themselves lightly. us. If you light yourself with passion,I = Intensity people will come from miles around to T = TrustWe must be focused on our goals and watch you burn. We must learn to trust ourselves. Too oftendedicated to put forth the effort necessary we are waiting for all the lights to turnto achieve those goals. Intensity doesn’t A = Action green before we leave home. There is anmean being so serious you aren’t enjoying By turning passion into action, we will adage that states: trust your gut. We shouldthe process. It does mean being serious surely make an impact! Oftentimes, this learn to trust our feelings.enough to overcome obstacles that stand in is the biggest challenge we face - puttingthe way. Remember: you are either intense our passion into action. There are times By becoming an IMPACT player, all those… or you are past tense! when we don’t feel like being impact around you will beneﬁt. Go out there today players. Our passion is at a low level, and and knock’ em alive!M = Model the correct behavior the feelings have gone. The key is this: WeYogi Berra once said you could observe must “act” our way into feeling and nota lot by watching. We should observe wait to “feel” our way into acting. Zig Ziglar is the chairman of the board ofpositive role models and “steal” the Ziglar Training Systems in Dallas, TX. Heeffective aspects of them. We should then C = Comedy relief can be contacted at 866.873.0026, or bymodel that behavior on a consistent basis. We must enjoy our intensity and our e-mail at email@example.com. 12 www.autosuccess.biz
sts ms ls ﬁs lr BryanAnderson sales and training solution 10 Steps to CRM Success A successful CRM 4. Build value into every customer record through the cracks any longer. implementation will with processes produce a tremendous You want your CRM feature-rich, and 7. Execute a strategic plan of business return on investment. make sure those features work within every day. Let’s examine 10 the framework of the sales process. Your Aim at nothing and you’ll be sure to hit it fundamental steps to sales people will be able to take an up every time. CRM provides each sales personachieving CRM success. and move through the sales process with with a daily business plan based on clear, ease. Real-time Web-based services concise rules for every type of customer1. Present to your staff the beneÞts of (such as reverse lookup technology and (appointments, leads, prospects, owners,using CRM compliance with the Do Not Call Registry) renewals, etc.). It’s an automated list ofSales people will save time because will enhance customer records. In addition calls to be made plus letters and e-mails toworksheets, appraisals, credit apps and add to basic contact info, the customer record be sent. CRM ties into your phone systemons are automatically and professionally will show all prospect history, all sales to measure outbound call compliance andlaser-printed. They will be able to move history (including gross proﬁt), all service to report on the calls your sales associatesthrough the sales process effectively and history, all after-sale history, a complete log. All of this data is analyzed in a reportwith greater ease. It provides a simple, customer proﬁle, all credit information, format, allowing you to interactively viewbut powerful, ﬁrst-pencil tool, credit complaint management (keep track of their each customer record.bureau processing, inventory look-up, and concerns), all e-mail history and the DMSappraisal management with Blackbook customer number (to create real-time data 8. Clearly identify customer types and sub-lookup. Sales people will enjoy automatic synchronization). Finally, the process will types within your CRMfollow up, as if each had his or her own conclude with a complete analysis of all Unsold customers cannot be groupedpersonal assistant who printed daily letters, data through interactive reporting. together. A customer who was unable tosent daily e-mails, and strategically built secure ﬁnancing is different than the unsolda plan of business 365 days a year. It will 5. Seek the immediate beneÞts of a real- customer who told his or her sales personoffer real-time integration with your DMS, time environment that he or she bought elsewhere. A be-backInternet leads and phone leads. You’ll Reap the beneﬁts of a real-time environment that is ready to buy in days is different thanget total buy-in of your sales staff. When in which people, process and data are a prospect that is ready to buy in months.sales people properly use CRM as a tool to managed. At any given time, your managers With a more detailed approach, you will sellsuccess, they all sell more cars, which will are able to see which customers (and sales more cars.increase their income. associates) are in the dealership. At a glance they are able to see today’s appointments, 9. Appreciate and acknowledge personal2. Attack your database on a daily basis ups, prospecting/owner calls, tomorrow’s lead production (PLP)Managers can easily create targeted appointments and sold units, both for today Your CRM can clearly categorize prospectsadvertising campaigns. They now engage and the month. Managers are able to tell found through a sales person’s personalin a daily review of the ﬂoor trafﬁc as who is responsible for the numbers (who is networking. It tracks referrals receivedwell as those deals that can be saved. doing their job and who isn’t). First-pencil during calls to sold customers. TeachingSales people log in every day to ﬁnd a ﬁgures are seen at the tower the moment your sales force to produce these prospectsplanner full of opportunities from today’s they are created. On any deal not closed, will increase revenue in all departments.appointments to prospecting for referrals a manager is prompted to follow up with Reward your sales staff for their ownand closing renewal business. Produce a call to save the deal. Now put this kind personal lead production.results every day. of power into the hands of your BDC, and you’ll see your call center, sales team, 10. Create a data collection process to3. Prepare and service team work together in ways capture 100 percent of customer informationYour CRM provider is able to efﬁciently you never could outside of a real-time Successful CRM has less to do with cutting-pull every DMS record possible, for both environment. edge features and more to do with howsales and service. If a customer’s name and those features are designed to ﬁt your salesnumber has been recorded somewhere at 6. Implement a speciÞc process for pipeline process. Attention to process is the mainsome point, that customer will end up in management component a successful CRM incorporatesyour CRM. These records are scrubbed Every customer record has value. When and the main reason why many solutionsagainst the National Change of Address sales people reach a barrier with a succeed in dealerships.(NCOA) database to ensure that your data customer a trigger prompts a manager to Bryan Anderson is the founder andis accurate. Then each record is matched step in. When managed in a dynamic and president of Autobase Inc. He can bewith a current sales person and a plan for interactive process, dealerships save money contacted at 800.350.9683, or by e-mail atfollow-up. in a short amount of time. No one slips firstname.lastname@example.org 2005 13
sts ms ls ﬁs lr AdamDeGraide leadership solution On Becoming a Servant Leader How do you deﬁne servant leader is aiming to go beyond success in servant leadership depends on leadership? Ken success and social signiﬁcance and how clearly values are deﬁned, ordered and Blanchard, co-author approaches leadership as an act of service lived by the leader. Living out these values of “The One-Minute from the perspective of what we can give and core beliefs is where most leaders and Manager”, “Raving rather than what we can get. Sounds easy, dealerships can get into trouble. You cannot Fans” and now the but leadership for the purpose of serving just talk the talk, you must walk the walk.“The Servant Leader”, deﬁnes leadership others will fail if we fall prey to false pride Effective implementation requires turningas “an inﬂuence process – any time you are and fear. the traditional hierarchy of a dealershiptrying to inﬂuence the thoughts and actions upside down so that the customers andof others toward goal accomplishment in Close examination of failed leadership the folks on the front line are at the top ofeither their personal or professional life, efforts usually reveals a self-serving leader the organization with all of the tools andyou are engaging in leadership.” It makes who has been drawn by pride into taking too resources needed to do their job, while thesense to measure our success as a leader by much credit, showing off and demanding leaders serve the needs of the employees;our ability to shape what others think, do attention or by fear that compels a person helping them to accomplish the vision andand say as they try and ﬁnd meaning and to protect him or herself, hide behind a direction of the dealership.their purpose in the world. It can also help title, intimidate others, discourage honestto ask if we are being selﬂess or selﬁsh. feedback and ultimately become known as Putting it into actionThe answer to this question compels us to a control freak. In preparing your heart it Once you feel and understand the concepts,search our inner motivations and measure is important to treat others as if they are as are you really willing to change your heart,our actions and habits in light of the goal of important as we are. Why? We treat people your mind and your behavior to become abeing a better servant leader. In this article the way that we see them, and if we see better servant leader? Once you step out itare some ideas for preparing our hearts, them as inferior we will treat them that is important to step up and stay the course.bringing clarity to our minds and applying way. When we treat everyone as if he or Change is a given, it will happen. Yourand putting into action servant leader she were valuable and worthy of our time, organization will adapt or die, and you as aprinciples within our dealerships, families respect and attention, what do you think person will either grow or go. By becoming“and communities. would happen in our relationships? Do unto “other focused,” we can truly begin to lead others as you would have done unto you is the right way and others will want to follow the Golden Rule, and it works. out of faith and hope instead of fear and Prepare your Cleaning out the mind manipulation. It’s been said that if life is all about you, than you is all you’ll ever have. heart, clear Garbage in - garbage out. It’s time for us In order to work at taming an addiction to out your mind to take out the trash, wash out the cans. personal pride it helps to ask some hard When we allow our minds to be ﬁlled with questions: and put it into so much junk, we truly need to ﬂush out the garbage and bring in the fresh air of • Do I think of myself more often action. As a balanced thinking. All great leaders have a than I think of others? servant leader, speciﬁc leadership point of view and belief • Have I developed a habit of giving? system that deﬁnes how they see their role • Can I participate in a group without you can and their relationships with those they seek taking charge? ” to inﬂuence. Our belief system is shaped • Can I enjoy the successes of others accomplish by our past experiences, our attitudes and or does everything have to be about anything. feelings, our perceptions, our capacity for me? critical thinking and our education. What • Do I use plain, honest speech, we think is impacted by what we feed our letting “yes” be yes and “no” be no? mind. To make a positive impact on what • Do I do what I ask others to do?Preparing the heart we think, it helps to surround ourselves withRegardless of your title and position in the positive people and positive experiences. Prepare your heart, clear out your mind anddealership, any one can be a leader. It has put it into action. As a servant leader, younothing to do with your job and everything You are who you hang with, never can accomplish anything.to do with your character and your forget that. As a result, it helps to ﬁnd aintent. Whether you’re the title clerk, the role model who has the vision to do thereceptionist, a sales person, a desk manager right thing and, from an implementation Adam DeGraide is an owner ofor the dealer, people in the dealership can standpoint, has the ability to do things BZResults.com. He can be contacted atfeel it when we have a mission and we’re right. Values are also important because 800.526.9804, or by e-mail atseeking to lead for a higher purpose. The they deﬁne what you stand for, and true email@example.com. 14 www.autosuccess.biz
Our consultants will help your dealership achieve: • Industry Leading Gross Profits • Sustainable Sales Process • Maximum, Compliant F&I PVR • Professional Management Systems • Power Negotiation Techniques • Professional Sales Skills • Accountability and Objective Tracking Give Ziegler and his team a call! 800-726-0510You want warm and fuzzy? We got your warm and fuzzy right here. Ziegler Supersystems • www.ZieglerSuperSystems.com • 800-726-0510 Call today to speak to a Ziegler Representative In-Store Consulting - Management Seminars - Video Sales Training - Support Products
sts ms ls ﬁs lr BruceThompson marketing solution Almost $600,000 to the Bottom Line An effective inventory management and inventory wholesale time data from NADA, Kelley Blue Book, management system acquisition and liquidation. Black Book, MMR, CarFax, AutoCheck, coupled with real-time DealerBasics and other services, many times productivity tools, Most of the companies (vendors), who have within the same screen. based on accurate entered the industry of pre-owned vehicle market conditions management, aspire to meet the demand of A trade desk tool is utilized to assist thoseand real-time pricing, will beneﬁt your those three areas with the ongoing feedback with multiple dealerships. This tool matchesorganization because it gives the dealership from dealerships. The goal in mind is to surpluses and needs between dealers inmanagement team and the sales management beneﬁt multiple aspects of used vehicle a group that can be managed and tradedteam the knowledge needed to properly operations and encourage the repetitive by a single group manager. You needevaluate deals scientiﬁcally with little or no management processes for every used accountable key people operating theguesswork. vehicle. management system, working with dealer groups to customize backend fulﬁllmentSoftware systems have been coupled with A signiﬁcant aspect of used vehicle processes, including title processing andthe correct level of training and support so operations involves customer appraisals and transport notiﬁcations, to make the tradethat these new productivity tools are simple trades. Trade-ins account for approximately process efﬁcient.to use, easy to implement and based on real- 60 percent of the pre-owned automobilestime data in an ever-changing market. retailed by a dealership. There is also a mechanism for dealers to send alerts out to other dealers for a vehicle theyManagement systems for auto parts are a When the dealership knows at the time of are appraising or have in inventory with astandard business practice at dealerships. the vehicle appraisal that this model tends requested buy-now price. Dealers receivingIt make sense to manage millions of dollars to retail for a strong proﬁt, or that another these alerts can counter with a different pricein pre-owned vehicle inventory as well. dealership within his group could use that for the vehicle or request to purchase theWouldn’t you agree there is a need? vehicle, the dealer can offer the potential vehicle at the buy-now price. This is ideal customer a premium for their trade-in and for dealers to shop potential or recent tradesThere are sophisticated systems for managing subsequently make another car sale – at a to a network of dealers.pre-owned inventory. All systems have good proﬁt.similar goals: eliminate wholesale loss and Some systems help to compile theunproductive inventory, achieve consistent Use of these systems and processes can dealership ideal inventory model and givesunder-30-day turns, real-time inventory improve a dealership’s ratio from trading ideal and actual inventory calculations,management control at the dealership level, for two out of 10 vehicles to almost ﬁve recommendations, aging reports, retail vs.maintain proper inventory mix, provide out of 10. For an average sized dealership, wholesale reports and a quick-glance at ainstantaneous buy/sell recommendations, this could mean almost 30 additional new or dealership’s sales history with all makes andprovide more scientiﬁc appraisal tools with used car sales in a month, or approximately models. This makes the selection processreal market values and increased trade $45,000 in additional front and back-end for trades and the appraisal process more ofopportunities. gross proﬁt. a predictable, accountable process.The biggest challenge for the used car Vehicle inventory management systems will There are tools that provide a trading networkmanger can be adopting and embracing help the dealer and the used car manager that matches inventory needs betweenchange. Robert Kennedy said, “Progress is determine individual marketing strategies. dealers, thus creating a real-time channelgood but change is its motivator and change Some systems provide consistent inventory for dealers to shop vehicles over the networkhas enemies.” The improvements of a used recommendations for each vehicle being while a trade is being evaluated. This canvehicle management system will increase evaluated, as well as data that will help replace the system whereby the used carproﬁts in all departments. make better decisions for each car deal. manager calls other used car managers, one The consistent use of these tools will guide at a time, to see if they would purchase theA dealership that instituted one of these managers to stock what will sell best at that vehicle, call wholesalers or purchase thesystems experienced the following. particular dealership. Consistent compliance trade unit at a conservative amount andBefore implementation, retail pre-owned with the inventory recommendations will later take the vehicle to an auction. Used carvehicle volume was 97, after 116. Before result in increases of gross proﬁt and an managers are able to identify and purchaseimplementation, the average retail pre- improvement in turn time of about 15 vehicles they know will retail well before aowned front end was $953, after $1,220. percent. vehicle ages, therefore reducing wholesaleBefore implementation, the retail pre-owned losses.turn time was 25 days, after 21.5. This These systems provide daily inventorytranslated into an average increase in front- management tools, such as book-out sheets,end proﬁt of more than $49,000 – almost inventory recommendations, past history,$600,000 to the bottom line that was laying vehicle condition history, book values and Bruce Thompson is the chief executivedormant at the dealership. appraisal sheets. The appraisal portion ofÞcer and founder of American Auto provides tools for dealers to track appraisal Exchange. He can be contacted atThree main areas of pre-owned operations performance and trade rates and to work 800.901.3017, or by e-mail atare appraisals and trade-ins, inventory deals with customers. It incorporates real- firstname.lastname@example.org. 16 www.autosuccess.biz
sts ms ls ﬁs lr AnthonyHall sales and training solution Silence is Golden Sales people need test all accessories, i.e., windshield wipers, • How many miles on the current to bring out the true radio, heater, air conditioning, power seats, tires? condition of the all power windows, etc. Record all defects. • Is this car equipped with a spare tire customer’s trade- and a jack? in professionally Next, drive the car with the customer and • Does the car have an environmental because by not doing check for any mechanical problems. Helpful protection package?so, we are leaving gross proﬁt on the table hint: Always ask the customer, “What is • Do you have both sets of keys anddue to over-allowing on trade-ins. that noise?” The customer will always the key fobs? respond with an explanation. Make oneThis can be corrected with a silent trade quick trip around the block. Once back at “And if you had to rate you car, Mr. orevaluation (condition, not value). The the dealership, park the trade-in as close as Ms. customer, on a scale of one to 10, withprocess starts after a quality demonstration possible to the vehicle they are buying. This 10 being absolutely perfect, showroomdrive and commitment to buy if all terms is a great opportunity to show the difference condition, how would you rate your car?” “are agreeable. between old and new. Most people respond between six and eight. Where would it rate on the scale?Once the commitment to buy has beenestablished, proceed to your trade This whole In consideration of this rating, the buyer has process takesevaluation. Ask the customer if there is three prices in mind for their trade-in:a vehicle they would like to sell to thedealership. “Help me, help you, sell yourvehicle to ABC Motors. Show me.” less than 15 to 1. Asking price. 2. Liking price.With clipboard in hand and a trade 20 minutes and 3. Taking price.evaluation form attached, start by having produces huge Through this process, the sales personthe customer read the mileage on his or hervehicle. Record it on the form. No words returns. It also has can bring the customer from an asking price, which always equates to a hugefrom you, but you may want to do the winceand ﬂinch (a very effective tool). Also, ask a positive effect over-allowance based on actual cash value of the trade, all the way to a taking price. on yours and the ”him or her to activate the hood release while The difference can be as much as $1,000 dealership’s CSIthey’re in position. Proceed to the front to $2,000. This is the difference betweenof the vehicle and lift the hood. Record a little or no gross to a much more fair andany oil leaks, over spray, or worn belts(Silence, touch and feel). Proceed to the scores. reasonable gross. It has the ability to take a lot of the confrontation out of negotiationfront bumper, touch any scratches, dents, when it is time to present trade ﬁgures.cracked headlights, etc., and record them. Then, bring the customer inside and sit himMove to the passenger side, recording tire or her down in the negotiation area. This A customer’s perception can be summed upwear (at this point, you may want to use the is the point where we ask them some key this way: I’m going to pay this much for the“penny-tire wear gauge”). Hold a penny so questions: car I’m buying. I am going to get this muchyou can slip it between the tread. If you can for my trade-in; all I have got to do is paysee the top of Abe Lincoln’s head, the tire • Do you have the title? the difference.wear is beyond the point where it will pass • Is this a salvaged title?state inspection. Touch every dent, scratch, • Is the title free and clear? It is the sales person’s job to increase theor defect and record them. At this point, wait • Lien holder – pay off? perceived value of the car they are buying.for stories on how each dent happened. • Has the vehicle ever had any (Walk-around, November article) and collision damage? If yes, what type respectfully decrease the perceived value ofMove to the back of the car and at this of damage and what was the cost of their trade-in. This is where the gross andpoint, ask for the keys. Open the trunk, the repairs? your commission are.hatchback, etc. Check for the spare tire jack, • Has the vehicle had any mechanicallook for any ﬂuid bottles, i.e., brake ﬂuid, repairs? If yes, what type of repairs? This whole process takes less than 15 totransmission ﬂuid, oil, etc. Pick up each • Was the vehicle purchased new? 20 minutes and produces huge returns. Itbottle, hold it close to your ear and shake it, • Has the vehicle ever been smoked also has a positive effect on yours and thelooking for half full containers. Move to the in? dealership’s CSI scores.driver’s side, also recording any defects, and • Has it been used for towing?get in and ask your customer to do the same. • What is the date of the last tune-up? Good Selling!Go over the interior thoroughly, checking • What was the date of the last oilfor wear and tear, cleanliness, etc. Record change?side glass and windshield condition. • Has the oil been changed every Anthony Hall is a training consultant 4,000 miles? at Ziegler Supersystems. He can beWhile in the driver’s seat, start the vehicle • Do you have all the required contacted at 800.610.9047, or by e-mail atand turn on every piece of equipment and maintenance history? email@example.com. 18 successful solutions at www.autosuccess.biz
sts ms ls ﬁs lr CarolMartin sales and training solution How to Identify and Sell to the Entrepreneur Personality If you could connect take the upper hand in situations and have with your prospective an innate ability to convince others to see buyer, would it help things their way. Outwitting, outdoing, or get the sale? Would overpowering them can prove to be a tall you want to know task, as they usually have good answers for how to speciﬁcally everything and are not the least bit afraid tosell a customer who is outspoken and speak up. They are win-driven, competitivedemanding? What if you could create and and determined to stay in control ofpique genuine interest in a shopper who situations. They will probably relate wellseems unmotivated? Have you ever made to you if you seem equally enterprising anda sale when a prospect said he or she was self-assured; they respect and appreciatejust looking? your competitive drive.This article is the ﬁrst in a three-part While all entrepreneur personalities shareseries dealing with how different buyer the same general characteristics andpersonalities respond to various sales display overall behavioral patterns that arepresentations. You’ll learn how to read your similar, it’s important to know that thereprospect, detect subtle buying cues, and are different levels of each deﬁning trait.tailor your presentation to trigger a positive Some entrepreneurs have exceedinglyresponse from even your most challenging strong and determined personalities. Thesecustomers. entrepreneurs can be charming, but they can also be outwardly bold and impatient. Part 1: How to identify and sell to the If your customer seems highly aggressive Entrepreneur personality and antsy, be prepared to be a little less Part 2: How to identify and sell to the forceful when talking business, so as to Technician personality avoid bumping heads and thus triggering Part 3: Will the Accommodator an unwelcome and, perhaps, deal-breaking, personality ever, in your lifetime, confrontation. Consider these strategies actually buy a car? when working with an entrepreneur:Entrepreneur personalities will usually be • End your sales pitch with a sentencetalkative and fast-paced. They’ll also be like: “Of course, it’s up to you whetherfriendly. True entrepreneurs like to make you want to take advantage of thistheir own decisions, and they may seem special, because you have to make thatto have a very clear idea of which vehicles decision”they do, and do not, want to buy. In termsof dollars and cents, do not hesitate to • Make his or her ideas seem likenegotiate with them. your own. For example, point out an obviously positive feature about theSome entrepreneurs might seem a little vehicle, something with which thedemanding, but they can also soften those prospect is sure to agree. Once he ordemands when they want to, by putting she does, get him or her to elaborate ontheir excellent social skills to good use. it and then say something like: “You’reThey might make some small talk, establish exactly right! I never thought of it thateasy rapport, so their own business way.”objectives can be more readily attained.They are typically conﬁdent, assertive and Virtually all entrepreneurs can identify withfast-paced individuals. You will probably people who are driven to win. Talk aboutnot ﬁnd an entrepreneur personality asking your own successes; if you met or exceededfor a lot of help, putting himself/herself your goal last month, work that into thedown or waiting long for an answer to a conversation.question. If you notice that your customerseems self-sufﬁcient, conﬁdent, talkative,quick and very proactive, you are probably Carol Martin is a senior consultantdealing with an entrepreneur personality. with The Omnia Group. She can be contacted at 800.601.3216, or by e-mail atEntrepreneurs are leaders. They instinctively firstname.lastname@example.org 2005 19
sts ms ls ﬁs lr marketing solution ScottJoseph Discover How to Eliminate Your Dealership’s ‘TrafÞc in the Door’ Challenges I ask dealers and businesses, is one of the least understood training, which leads to better general managers and most underutilized facets of business customer education. all the time, “What today. • Track all advertisements and is your biggest measure the ROI. Know exactly challenge in selling In these competitive times, the importance what is working and, more cars today?” Almost of marketing is even greater than before. importantly, what is not.always their answer is “trafﬁc.” The more Why? In this wildly unpredictable andI study the challenge of generating more changing marketplace, dealerships must 2. Increase customer retention by:trafﬁc and staying ahead in competitive have an edge or they will not survive • Communicating frequently withtimes, the more I am convinced it boils – they’ll lose their share of market to their customers.down to one principle – marketing. As competitors. • Provide compelling reasons as towe start 2005, now’s the time for you to why they should come back intune up your marketing – to make sure The simple fundamentals of marketing – the and buy another vehicle withyou’re getting new customers coming in, obvious marketing techniques that make a special offers before they areold customers coming back and customers lot of money – are the most powerful. After announced to the general public.purchasing more often. all, you can do all sorts of advertising, but if you ignore the basics, the money just will 3. Increase closing rate by:Marketing is the main spring of every not come easily. • Increase the sales skills withbusiness. After all, marketing is the science training.of getting people to come in and test drive Does your dealership(s) have an actual • Develop an advertising strategyyour cars and have them try your parts and marketing plan? There are only three ways that allows your sales staff theservice departments. It persuades them to to grow your business; 1) sell to more opportunity to qualify the wantscome back again and again and induces customers, 2) increase your gross average and needs of customers up front.them to purchase at higher grosses when and 3) increase how often customers spend • Offer great deals for the customer.“they do come back. money with you. What is your growth • Educate customers by giving strategy to accomplish these goals? “reasons why” they should buy from you. Maximize A real marketing growth strategy incorporates advertising, sales and your To increase your gross averages, focus on: the potential corporate identity. Maximize the potential of the marketing plan by working backward • Use direct response ads that attract buyers who negotiate less (it of the – start from sales. For any marketing plan to work the advertising element must align can be done). • Increase the sales skills. marketing with the way your dealership sells cars. The class war between marketing and sales is a • Managers start every deal. • Use direct response ads that plan by primary reason for program failure. There are direct response advertising strategies increase the percentage of people who talk numbers (once again, it can working that can help support your sales team – even be done). make them better. backwards To increase how often customers spend To increase sales, focus on the following: money with you, focus on: ” – start from 1. Increasing your phone trafﬁc, new • Use direct response techniques and used ﬂoor trafﬁc, parts and service to create compelling reasons sales. business by: why customers should come in • Aggressively marketing products and buy another vehicle from you and services by using direct right now. response advertising rather than the • Run special events suchMarketing is not just advertising. normal institutional advertising. as “clearance and new modelIt incorporates sales, advertising, your • Run special sales events. introduction” events, and so on.business identity and a host of other • Develop a unique selling • Special offers for sales.ingredients that are less obvious. Without proposition and a corporate • Monthly parts and servicemarketing, you lose customers. And identity. This identity must be offers to induce frequency.without customers, you lose business. recognizable in all communications and convey your unique selling Scott Joseph is the president of J&LMarketing can make the difference between proposition. Marketing Inc. He can be contactedthe life and death of your dealership. Yet, • Increase the perceived value of at 866.429.6846, or by e-mail atmarketing, which is the prime mover of the product through better sales email@example.com. 20 www.autosuccess.biz
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fs feature solution PatrickLuck 2005 eDealers of the YearOur January issue is dedicated to honoring the forefront of digital marketing, enabling to establish an Internet marketing strategy.the Top 10 eDealers of 2005. The them to sell 50 to 800 units every single This person typically winds up spendingbenchmark for consideration for winning month. Successful dealers recognize and a lot of time updating and maintaining athis year’s award is results as measured appreciate the fact that 70 percent to 80 nice-looking, information rich site that isby volume of Internet sales and by how percent of all customers who purchase a largely ineffective and when taken to thewell the dealers use the Internet and digital new or used vehicle use the Web at some extreme, these are the dealers who abandonmarketing to promote all of their proﬁt point in the buying process. Some dealers the Internet entirely. In contrast, our Top 10centers: new, used, F&I, service, parts, etc. have even scrapped their conventional dealers tell us about personal involvementOur goal was to seek out the dealers who advertising budget and dropped their cost in selecting the right vendors and deﬁningare the best at using this marketing medium per sale from $300+ to less than $150 an Internet sales strategy and vision withto generate huge increases in proﬁt for their per sale. In recognition of these and other their entire leadership teams. Some of thedealerships. We considered the number of outstanding achievements, we devote this areas dealers consider when establishingrooftops, the size of the dealership or dealer article to recognizing the Top 10 eDealers their strategy and vision are: technology,group, their markets, the brands they carry of 2005 and we will share some of the best marketing, process, people, pricing andand their Internet proﬁts as a percentage practices that have positioned them at the measurement.of their total proﬁts. Here’s the detailed top in their ﬁeld.criteria used to select the winners: Establishing Your Strategy & Vision by Internet Strategy & Vision: Seeking to Answer 10 Questions: • Proﬁt generated as a result of We found that commitment starts with Technology: How do we separate the hype Internet marketing the dealer principle himself and cascades from what works? What vendors deliver • New and used vehicle sales volume throughout the rest of the organization a clear return on investment and what as a result of Internet marketing in direct proportion to dealer’s level of technology can successfully automate parts • F&I and subprime proﬁts as a result commitment. For the award winners, of the process? of Internet marketing the vision doesn’t start with the General • Online service and parts business Manager or the Internet Director or Marketing: What are some best practices for using the Web and digital marketing to 2005 eDealers of the Winners! Congratulations, eDealer of the Year Award Year attract more customers to the dealership? What is the best use of my advertising budget and how much should be devoted to Dealership Location Website digital marketing? Paragon Honda & Acura New York, NY www.ParagonCars.com Dick Hannah New York, NY www.DickHannah.com Process: How can a dealer ﬁne-tune Ralph Schomp Automotive New York, NY www.Schomp.com his process to ensure that more of his Tasca Automotive Group Providence, RI wwwTasca.com opportunities are being transformed into Herb Chambers Boston, MA www.HerbChambers.com Red McCombs San Antonio, CA www.RedMcCombs.com proﬁtable sales? Earnhardt Auto Centers Tempe, AZ www.Earnhardt.com Courtesy Chevrolet Phoenix, AZ www.HouseofCourtesy.com People: What are the secrets to lowering Dave Smith Motors Kellogg, ID www.DaveSmithMotors.com employee turnover? What are some best Sheehy Virginia/DC www.Sheehy.com practices for recruiting, hiring and training the right team?We learned a lot about what determines another member of the leadership team;a dealer’s success with using the Web to for the winners, commitment to an Internet Pricing: When, where and how do thegenerate increased sales and service proﬁts. strategy and vision begins with the most successful dealers address pricingWe found some commonalities among dealer himself. A common mistake some on the Internet? What will work for mythe winners and some truly effective best dealerships make is to dedicate or hire a store and what are some best practices forpractices that have propelled the winners to technology person and leave it to him or her maintaining a fair proﬁt? 22 www.autosuccess.biz
www.ParagonCars.comMeasurement: What are the key metrics for what customers look for 90 percent of themeasuring performance success? timeGreat Web sites: Marketing:What makes them great? Appearance is How can you get the greatest return onsubjective, and when it comes to design your advertising dollar? www.DickHannah.comwhat appeals to one person can repel Trafﬁc is the secret to success in the caranother, which is why we selected our Top business, whether you’re talking parts10 eDealers based on results. This is why sales, service absorption, F&I proﬁt, newwe deﬁne the 10 Greatest Web sites as those car sales, used car sales or the Internet. Inthat generate measurable results. You can today’s super competitive market, it’s notrefer to the screen shots of these Web sites to as simple as building a great Web site and www.Schomp.comgo online and experience them for yourself selling a ton of cars; you need to let yourwhere you’ll ﬁnd one commonality; they customers know how to ﬁnd you. Manyare simple and easy to use. The dealers dealers start by making sure that all theirtold us that common feedback from their employees are familiar with their site andcustomers (and this can be true for any by tagging all conventional advertisingonline transaction) is that navigation has with their Web address. The award-winning www.Tasca.comto be simple and obvious. There’s not a lot dealers make it their business to capitalizeof extraneous information on these sites on the opportunities afforded by digitalwhere 90 percent of the space is devoted marketing. They buy the right URLs andto what the customer is looking for, which they use organic search engine optimizationis to research product information, to ﬁnd a and even pay-per-click optimization to www.HerbChambers.comparticular vehicle in inventory or to access ensure the customer arrives at their siteservice information. instead of at the competition. Successful eDealers create alliances with regionalDealers also tell us that a Web site will get and local sites that direct customers toresults if it is simple, easy to use, quick to their website via banners and links becauseload and highly engaging with multi-media they know that compared to the cost of www.RedMcCombs.comtechnology that can work fast even on a conventional advertising, online marketinglow-speed connection. Great Web sites delivers more customers for less money.offer cool features like online coupons, Visit the local newspapers for many of ourspecials, virtual test drives, online credit Top 10 eDealers, go to the car section andapplications, online trade appraisals and you’re likely to ﬁnd a banner ad whenevera full range of pricing information. Since you research a make that dealer sells. This www.Earnhardt.comthe majority of new and used car buyers can generate lots of incremental trafﬁc forpurchase a model other than what they the dealership.originally select, a great site will offeran alternative if you don’t have the exact Another frequently used and highlyvehicle a customer has inquired about, effective online marketing strategy www.HouseofCourtesy.comnever telling the customer you don’t have employed by our Top 10 eDealers is directwhat they want. Great Web sites do much e-mail marketing, because dealers canmore than post information online, they reach hundreds or thousands of customerscompel the customers to pick up the phone, with just a few clicks and a couple ofsubmit a lead or drive straight to your minutes for less than the cost of a stamp.showroom. Dealers tell us this works best if you have www.DaveSmithMotors.com established a database of e-mails and if you5 Keys to a Great Automotive Web site: have access to multi-media e-mails that useKey #1: Simple and easy to use, fast to the latest in compressed animation. Bobload Tasca III from Tasca Automotive tells usKey #2: Provide what the customer wants that, “Our customers are always telling usKey #3: Incorporate high-tech, engaging, about how much they love our buzzmails www.Sheehy.commulti-media technology that works fast on because it’s like watching a mini-moviea low-speed connection about the product. It’s unlike anything elseKey #4: Automatic updating (inventory, out there so it gets their attention. Whatspecials, pricing, etc.) I love is that everything is measurable,Key #5: Devote 90 percent of the space to continued on next pagejanuary 2005 23
continuedincluding the view rate, so we can measure visible to create excitement and top-of- When it comes to price it would appear thathow effective we are at reaching our target mind awareness. there is no magic bullet or proven formulamarket. If FMCC comes out with an 9. Use automation wisely to stay in touch for success as each dealer’s pricing strategyExplorer incentive, I can send a buzzmail to with prospects who don’t set appointments, was different. However one commoneveryone who has been in on an Explorer, I don’t show or don’t close. practice for every one of our dealers iscan select just our lease renewal customers 10. Management needs to stay involved that the leadership team at the successfulwho are currently in an Explorer or even and create a sense of passion for the dealerships got together to consider eachfolks who were in for service. There’s no process. pricing model, evaluate the potential proslimit to how I can target my campaigns.” and cons and created a pricing strategyTasca is one among many of our Top 10 People: that was uniquely their own. By analyzingeDealers who spoke highly about “virtual “Find the right team and create an each model to establish their own pricingtest drive” technology that sends customers environment that they’ll never want to strategy, the Top eDealers told us that everya mini-movie of a walk around presentation leave.” member of the team believed in and feltstraight to the customer’s inbox without Robert Revere of Courtesy Chevrolet conﬁdent about the strategy as a result.requiring the customer to open an made this comment at the Best Practices Once again, we discovered that nothingattachment. Regardless of their chosen Summit in Las Vegas, demonstrating how sells cars like belief in the value of whatvendor, the size of their organization passionate he is about hiring, training and you have to offer.and the franchises they carry, the Top 10 retaining the right people. Our top eDealerseDealers all spoke about the importance tell us that if you have the right people who Measurement:of a clearly deﬁned marketing strategy for are passionate about what they do you can Tracking your performance results.driving more customers to their Web sites. make up for a multitude of shortcomings The best part about Internet marketing in other areas. That’s great, but what is that everything is measurable. SomeProcess: can a dealer do to ﬁnd the right people technology providers will even automateThe key is implementation and automation. and combat the auto industry’s biggest the reports you need to take a few minutesAs with success in marketing, success with challenge - turnover? Whether you’ve built a week to get a great snapshot of howyour process begins by clearly deﬁning your Internet sales model around an Internet things are going, who is excelling andwhat needs to happen, how it needs to Department or a centralized Customer where your process needs ﬁne-tuning. Thehappen, who will be responsible and how Relationship Center/Business Development most important numbers to track are thethey will be held accountable. We learned Center, the top dealers tell us that you need following:from the Top 10 eDealers that it’s important to seek out people who are passionate about • Number of visitors to your Web sitefor the dealer and the leadership team to customer service and can shine on the • Conversion ratiocreate a detailed action plan for Internet lead phone. They also tell us you don’t need a • Closing Ratiomanagement and sales. Thinking through team of technology experts, because with • Average gross proﬁtthe tactical details can remove some of the the right Web site and CRM tool you will • Cost per sale by lead sourcebarriers to process implementation while not spend much time resolving technology including your Web site and thirdautomation can reduce the margin of error issues or maintaining your Web site. Nor party lead providersand free up your people to spend more time do you need people who have proven to bedoing what they do best; set appointments super successful on the sales ﬂoor as those Again, Congratulations!and sell cars. Here are the best practices we team members will often attempt to sell the Congratulations to the Top 10 eDealersgleaned from our interviews: car (rather than the appointment) over the and thank you for sharing your insight on phone and usually suffer from “Attention to what it takes to use the Internet to sell moreTop 10 Process Best Practices: Detail Deﬁciency.” Since the main goal for cars. If you have any questions regarding1. Fast, professional response increases team members within the most successful any of the best practices described inappointment ratio and ultimately sales. Internet departments and CRCs is to sell the this article, please feel free to visit the2. Customizable e-mail templates for appointment and make sure the customer dealers’ Web sites or send an e-mail toevery scenario (price, trade, payments, shows up, it helps to seek out people who firstname.lastname@example.org and be sureavailability, etc.) increase the speed and love working on the phone in the ﬁeld of to read next month’s cover story whereprofessionalism of your response. customer service. we’ll publish our interviews with the Top3. First e-mail should set the stage for a eDealers of 2005.phone call. Pricing:4. PHONE SKILLS, PHONE SKILLS, How to stay competitive while protectingPHONE SKILLS! your fair proÞt.5. First goal is to sell the appointment, not Pricing was the one area in which wethe car. noticed incredible tactical variance among6. Use a script for all inbound and outbound the top eDealers. We found best practicescalls. that ranged from 1. invoice, MSRP and Patrick Luck is the editor and publisher7. Conﬁrmation calls made by the manager dealer price offered online 2. contact the of AutoSuccess Magazine. He can bewill double the show ratio. dealer for a quote and 3. no price quoted contacted at 866.432.8276, or by e-mail at8. Use an appointment board that is highly online, in an e-mail or even on the phone. email@example.com. 24 www.autosuccess.biz
• Direct Mail Consulting • Promotional Insurance • Promotional Giveaways • List Resources • Staffed Events • Database Management • Live Call Center www.accauto.com • Voicemail Broadcasting 710 Waugh Dr. • Houston, TX 77019 rs Maileas as low 29¢ minimum order required Bill Heard Chevrolet Sugar Land, TX Contact: Mike Baches Phone: (281) 491-9000 Gurley Leep Automotive Group Cavender Toyota South Bend, IN San Antonio, TX Contact: Dennis Carey Contact: Lonnie Perez Phone: (574) 876-3455 Phone: (210) 681-6601 o Pick from a Wide array of proven mail n pieces Laser personalization n 8.5x14 Four - Color Mailer p Brown or White # 10 EnvelopeFeaturing Annie Duke, World Famous Poker Champion Check her out at www.pokerroyalty.com PL AY AND WIN 100,000pcs OF FREE MAIL!!! *Amounts awarded vary between each place Two Ways to Register:1. By Phone at 888-441-6245 Before NADA 2. In Person on Sat. Jan. 29th at Booth #1961 WE ACCEPT: SHOWDOWN WILL TAKE PLACE AT BOOTH #1961 • Sun. Jan. 30th @ 9:00am
sts ms ls ﬁs lr JoeVerde sales and training solution Management Driven Dealerships Question: Joe, what • Satisﬁed Customers are more price Management: With even a 50¢ compass, a do you mean by focused, and if you don’t convert them torn map, one sputtering engine and loose Market Vs. to value buyers, they’ll turn on a dime steering, you’ll know where you are and Management Driven? for a cheaper price down the street next can start heading where you want to go. time around. If your goal is just good Nothing about “hope” – you have a plan, a CSI instead of Loyalty, you’ll lose most direction, some control and momentum.The average dealership is ﬁnding it much satisﬁed customers.tougher to compete in today’s market. As an We’re at a crossroads in today’s market, andindustry, we’ve always been challenged to • Unsatisﬁed Customers = no more sales. your dealership’s future depends on whetherstay on the “value building” path in “Sales”. Note: More are dissatisﬁed with the buying you choose to be Market or ManagementAfter 9/11 when the rebates hit hard and experience than the price. Driven. Becoming Management Drivenfast and never let up, a lot more dealerships is tougher because you have to think,made the transition to price–focused selling plan and take action every single day as ainstead of value–focused selling and by Can you give me an example of Market vs. Management Team to consistently movedoing so, gave up their opportunity of Management Driven? forward. With Management you haveconsistent growth in sales and proﬁts. control - with Market you have to hope for Market: If you’ve ever had a boat, been good luck. in the middle of the ocean and lost yourDoes it matter? Dr. Edwards Deming electronics, your steering and your engines, Don’t just “hope” – plan – and have yourtalks about what happens when quality you’ve experienced what it’s like to be best year ever – every year!declines and we’re seeing it happen now. Market Driven. You don’t know where youEven as every manufacturer is focused are, have virtually no control, don’t know Joe Verde is the president of the Joe Verde Group. He can be contactedon reducing the number of problems per what to expect next and you drift with the at 866.802.5455, or by email atvehicle and CSI is high, the quality of the winds and current. You are deﬁnitely on the firstname.lastname@example.org, or visitbuying experience is dropping. Rebates “hope plan”. www.joeverde.com.have always come and gone ... this timethey didn’t. Extended rebates equal highercosts, so manufacturers and dealers take Market Driven vs. Management Driventheir eye off the goal: a quality product andexperience. They focus on expenses and Market Driven Dealership Management Driven Dealershiptry to save their way to a proﬁt, instead offocusing on building more value and selling • 30 percent of sales to repeat, ref., • 70 percent of sales to repeat,their way to a proﬁt. When your focus turns internal & outside prospects ref., internal & outside prospectsto saving instead of quality, you begin • 70 percent of sales to walk-in and • 30 percent of sales to walk in anda process that erodes your sales, proﬁts, from advertising from advertisingcustomer base and long-term growth. • Huge ad budgets / high cost per • Low ad $ / focus: internal bus. sale (CPS) dev. / low CPSWhy? Because you have three types of • Constant turnover of sales • Virtually no turnover of salescustomers: Loyal – Satisﬁed – Unsatisﬁed. people people • Untrained management / no or • Well trained, effective poor teamwork management team• Loyal Customers keep you in business. • Price Advertising, Presenting & • Value advertising, presenting andThey may ask about price, but in the end, Closing closingthey buy YOU and the value experience.That’s why sales people who tell us they • Below average sales people: 10- • Professionals in sales: 12 units ordoubled their sales said they did it by 11 units or less moreslowing down, staying off price, building • Mgmt. blames market, sales and • Mgmt. tracks, trains andmore rapport and focusing more on building customers for low sales manages for sales increasesthe value of their product and dealership. • Stagnant annual unit and proﬁt • Consistent unit and proﬁt growthLoyal Customers are the least expensive to growth every yearget and keep, they buy more, refer friends,and produce higher revenues. 26 www.autosuccess.biz
BEST PRACTICESSUMMITE V E N T S U R V E Y R E S U LT S The Venetian Hotel & Resort Las Vegas, NV on a scale of 1 to 10 Topics Covered: 8.4 Quality & Credibility of Presenters: 8.25 Would You Come Back: 8.8 Location: 9.4 Overall Experience: 8.5 We asked attendees what will make the next Summit better: Small group breakouts, more time to ask questions. Great job putting this Summit together! General Manager, Toyota, Milwaukee, WI Very worthwhile, overall outstanding. If we make money with the ideas, we will be back! President, Honda/Toyota, Seattle, WA Coming May 2005 Las Vegas, NV On whatever the topic, use real life dealer speakers as BEST you did in this Summit to add real world practices and successes. PRACTICES General Manager, Ford/Acura/Nissan, Ellicott City, MD I think this was great. There were several different ideas represented in the sales and marketing SUMMIT II Stop by booth #6055 departments which gave us a lot of ideas on how to for registration and grow our dealership. Thanks for all your work preparing more details. the Summit. It was great meeting all of you. Internet Manager, Chrysler Jeep Dodge, Dayton, OH 800.901.3062 Stop by, sign up and get a free subscription
sts ms ls ﬁs lr RobertRevere marketing solution Courtesy Chevrolet’s Four Keys to Selling 380 Additional Units Master the four keys way to generate trafﬁc was to focus our and convert a higher percentage of our to more Internet marketing efforts on boosting the trafﬁc to unique visitors into leads. What excites us sales and the sky’s our site in order to drive sales growth. Our most is that everything is measurable and the limit. I say this ﬁrst step was an obvious one; we bought we know that if we continue to increase our because at Courtesy all the Web site names and elected to tag quality leads we will continue to sell more Chevrolet we went all of our conventional advertising with vehicles. That’s our most important metric.from selling 45 units through our e- www.HouseOfCourtesy.com but the bulkCommerce Department to 75, then 150, 275 of that 800 percent increase in trafﬁc can be Peopleand now 380. Our success can be credited attributed to search engine optimization and I don’t care how great your Web site is, ifto getting it right in four areas: Trafﬁc to e-mail marketing. you throw a lot of trafﬁc at people who lackour Web site (we’ve experienced a 800 the skills, training and aptitude to handlepercent increase in the past two years), the People don’t use yellow pages anymore, Internet and phone leads, you will onlyright Web site that is capable of converting they use search engines, and search engine succeed in irritating your customers. Wea high percentage of those visitors into optimization is the best way to ensure send all our phone and Internet leads to a“leads, people and process. that your Web site appears at the top of a dedicated team of people who operate our list. We are able to track that we get top Customer Relationship Center or CRC. positioning and loads of trafﬁc to our site. We have found that it is imperative to ﬁnd ... if you throw But our best results come from multi-media people who love the phone and shine on the e-mail marketing campaigns. I can target phone because in reality, an Internet lead a lot of trafÞc my audience, send thousands of messages and measure the results. Our campaigns is just a phone up on steroids. We work hard to ﬁnd people who match our CRC at people who are speciﬁcally designed to include a call Specialist proﬁle, love working in customer lack the skills, to action that links customers back into our site, which in turn pulls them into the relations and we work daily to ensure that every member of our team is a blackbelt training and buying process and sets them on the path to on the phone and a master at bringing in aptitude to scheduling an appointment. We have found customers. that e-mail marketing has all of the beneﬁts handle Internet of direct mail but it’s free, easier to measure and faster to send. Process Assuming you have the trafﬁc, the Web site and phone for converting the trafﬁc into leads and a leads, you will A Web site that can convert trafÞc into leads team of superstars, your process will make or break you. When we went live with our only succeed in ” Our site converts as high as 21 percent system, we took the time to clearly deﬁne irritating your of our visitors into leads by devoting 90 every step of the lead management process percent of the space to what customers to deliver a consistently professional customers. are looking for 90 percent of the time. We learned that our old site hurt our business experience to 100 percent of our customers 100 percent of the time. In creating our because it was difﬁcult to navigate and process we had to think through issues suchTrafÞc frequently qualiﬁed prospective customers as how to handle pricing and what to doWhether we’re talking showroom visitors, out of stock by failing to offer a similar or when a customer inquires about his or herphone leads or Internet leads, the fastest alternative vehicle if the exact one was not trade value. If there’s one thing I’ve learnedway to increase sales is to increase trafﬁc, currently in inventory. When a site shows in going from selling 45 vehicles to 380,and that doesn’t happen by waiting for the customers that we don’t have what you’re it’s that every member of the team needs“Up Bus.” Anyone in our dealership will looking for they will immediately eliminate to understand and support the process 100tell you that I am not a “computer guy” you from their shopping process. percent. Get your team involved, get itsand I’d even be a whole lot happier if e- input, hold it accountable and ﬁnd a way tomail would just go away. So I was very Our Web site not only resolves the challenge generate passion and belief in your process,surprised when we launched our virtual of “No Car in Stock,” it automatically and the sky’s the limit.dealership and found that our new Web sends a virtual test drive to the customersite was actually generating increased on the vehicle they inquire about and linksphone trafﬁc and showroom opportunities. them back into the Web site to take themThis is technology I can use. After further down the road to the sale. All ofmeasuring the results for a few months, this includes multi-media animation that Robert Revere is the eCommercewe took a look at how much money we can be viewed quickly even on a low-speed director at Courtesy Chevrolet. He can bewere spending on newspaper and radio connection and has proven to successfully contacted at 866.873.0034, or by e-mail atand decided that the most cost-effective drive trafﬁc, build value in our dealership email@example.com. 28 www.autosuccess.biz
EXPOSED Auto Dealer Speaks Out and Reveals the Raw Truth about That “Consultant –Trainer,” Mark Tewart, Who advertises in this Magazine All the Time. This guy, Mark Tewart promises all sort of things to us car dealers – sales and management strategies for our dealerships that he “promises”really pay off. Such as strategies that will increase sales without increasing your advertising. Ways to increase gross proÞt by $200 a car minimum. Howto reduce and eliminate water in used cars and so on. Every time I read one of his ads, I thought, “Who could be dumb enough to fall for this guy’s rap?”Now, I’m going to tell you the raw truth about this guy and his ‘success secrets.’ My name is Chad Hawkes; I live in Oklahoma with my wife and child. I went to college here and became a salesperson at a car dealership. Iwas a struggling salesperson with little direction and not much of a future if my results stayed the same. I didn’t know what I was doing and was frustratedeveryday with the business. I needed a change and I needed it quick. One day our dealer hired a consultant and trainer named Mark Tewart who ran all these ads with these big claims. However, our dealer toldus he had known this Mark Tewart guy for several years going back to when he was a new manager at another dealership. Our dealer told us to hang onto our hats because this guy Tewart was a Þreball with more real valid information on success in the car business than anyone he had ever seen and thathe wouldn’t have become a dealer before he was 30 years old without Mark Tewart. Most of what he taught us was so different from what we had ever seen, heard or been taught by other so-called experts. As we listened toMark’s information, we saw a whole different way to develop a high income career rather than just make a sale here and there. We heard sales skills,people skills and life skills and found freedom from the cheapest price, roll around in the mud, bait-n-switch ugliness. Best of all we learned actual skillsto reengineer our business (managers and dealer as well as salespeople). I even looked in the mirror and saw Chad Hawkes differently. So, skeptical andgrateful at the same time, we left the workshop with a workbook and CD’s full of ideas. The next day I began to implement 10 different Mark Tewart strategies. Over the next couple of weeks, as I got them up and running, they allsurpassed my greatest expectations. Let me give you an idea of what I am talking about. My Þrst year of implementing Mark’s strategies, I became thenumber one salesperson and my production tripled. I began to get my life in order as well. Every time Mark came to the dealership he taught me lessonsthat made my whole life change for the better. After a period of big increases, I was promoted to manager and attended Mark’s Management workshops.Once again, I was amazed at how much incredible information I got and how much it improved our dealerships sales and proÞts. Our little countrydealership, located in an economically challenged area had improved from 40 units a month to over 325 units and we had become on many months thelargest dealer of our brand in the state! Personally, I went from struggling to winning. I became the General Sales Manager and then bought my own dealership and now own twodealerships before turning 30 years old. How, you ask, could such a thing happen? The answer, simply, is learning how real proven and effective salesand management systems work, from the “master”, Mark Tewart. In spite of everything you hear about business being slower and tougher, my businessis booming. Just a couple of Mark’s strategies alone has allowed me to go from 40 used cars a month to over 120 a month operating out of a trailer!Thanks to Mark’s ideas, systems, inspiration and encouragement I have two dealerships and have bought the ranch of my dreams for my family. What is important is that Chad Hawkes can sell a ton of vehicles, get plenty of referrals, is unaffected by competition and has ‘real’ systemsin place to realize a huge proÞt every month. I knew Mark had it Þgured out when after one consulting session he showed me over 40 ways to grow mybusiness and make more proÞt. He is brilliant. So here’s the raw truth about this Mark Tewart guy: Unlike most of the ‘pretend’ experts, he is a bona Þdetrainer-consultant and money making genius, who can do anything from tweaking to transforming your business, so you not only make a lot of money,but you can make it a lot easier and more enjoyable than you can imagine.Maybe you are already doing well already – but you could do better (some of Mark’s most ardent students make many millions per year). Maybe youjust don’t want to be sold something that’ll be a waste of your hard-earned money. About that you can relax. Mark guarantees his stuff. I’ve got over $1,000,000 reasons why you ought to investigate what Mark has to offer. What reasons do you have NOT to look at this?And here’s how easy it is: Mark has prepared a straight-talk, detailed report – “HOW TO RECRUIT, HIRE AND TRAIN A DREAM TEAM OFSALESPEOPLE,” which you can have absolutely FREE of cost or obligation. Get it, read it and decide for yourself whether or not you want to get in onMark’s information. It’s that simple. To get your FREE Special Report go to www.tewart.com/specialreport or call our 24 hr. hotline at 1.866.432.2468.You will hear a brief, free recorded message and be able to leave your name and address, so your report can be mailed to you. Or write “report” on yourbusiness card or letter head and pop it in the fax machine or email it. Mark’s fax number is 513.934.4588 and his email address is firstname.lastname@example.org -Either way, you will get his eye opening report rushed to you, free. By the way, I wasn’t paid a penny to write this about Mark. I am a car dealer just like you. I did this just as a way of saying thanks to Mark foreverything he’s done for me. And I am not the only person who feels this way. With your report, you’ll get a book of actual comments from some of theover 10,000+ other salespeople, managers and dealers he has helped. Most like me are now making more money, with less hassle than ever before. Morebusiness that we handle ßows in everyday… proÞtably. All we can say is this, “don’t envy us. Join us”.Chad Hawkes, Hawkes Motors, Pryor, OK.P.S. Please don’t get my number and call me. The last thing I need is a zillion phone calls asking me about Mark. I’ve said what I have to say righthere. What else could you possibly need to know? Instead, call 1.866.432.2468 and ask for your FREE SPECIAL REPORT today. You owe it to yourbusiness. visit www.tewart.com/specialreport for a Free Special Report or call 888 2 TEWART 283.9278
sts ms ls ﬁs lr TonyDupaquier f&i solution The Importance and BeneÞts of a Credit Application One of the main the products sold in the business ofﬁce, service for an additional fee. functions of a credit and attempting a conversion without an “ application is to guard application is near impossible. The credit application is also the customer’s the ﬁnancial interests story to the lender. With the advent of of the dealership. services like CreditNet, many dealerships Unless the customer The credit application have gone to a ﬁve liner instead of usingpays for vehicle using cash, actual cash is no longer an a full credit application. This short appand not checks, the dealership becomes a does not provide enough information whenlender. As a lender, the dealership has the optional piece of speaking to a lender of a credit-challengedright to pull a customer’s credit. paperwork in the customer. Even though many lenders useHow is the dealership a lender? If the dealership; it has credit scores to determine loan approvals or tiers, the information gathered with acustomer writes a check, it will take a few become mandatory for credit application becomes invaluable indays for that check to clear and for the each and every deal, your next create-a-deal meeting. The creditmoney to be transferred into the dealership’s application can show stability and theaccount. Therefore the dealership is lending and its importance ability to repay a loan.the customer money until the check clears. and advantages mustThe same goes for drafting from a bank or be conveyed to the According to the Fair Credit Reporting ”credit union. The loan may be only for a day Act, which went into effect in Septemberor two, but there is still a risk involved for appropriate dealership of 1997, a dealership is not required tothe dealership. In your next meeting, have personnel. acquire a signature to run a credit bureau.the business manager show and explain this All the customer must do is make an overtto the entire sales staff and desk managers. act toward purchasing an automobile. It A credit bureau on every customer will soon is considered to be an overt act when aOne of the biggest challenges business be a legal requirement. As a provision of the customer has settled on a speciﬁc vehicleofﬁces face is the lack of credit applications Patriot Act, dealerships will be required to and is engaged in discussion regarding theon customers who go to their own bank run all customers though a national security sales price or payment options in a businessor credit union or for those who pay via database called the Customer Identiﬁcation environment. A business environmentcheck. Without a credit application, it Program (CIP). Dealerships must do this would be a sales person’s ofﬁce,becomes very difﬁcult to conduct a proper for every customer. A dealership can do business ofﬁce or any location within thecustomer interview. Without an interview this or enlist a secondary company to do dealership where deals are discussed andit is impossible to create the need for it. Many credit bureau companies offer this consummated. A casual discussion between the customer and the sales person while walking on the lot or a customer wanting to take a test drive of a vehicle does not constitute an overt act. It is a requirement of the credit bureau companies and many of the lenders, that dealerships have customer authorization to run a credit bureau. The credit application is no longer an optional piece of paperwork in the dealership; it has become mandatory for each and every deal, and its importance and advantages must be conveyed to the appropriate dealership personnel. Tony Dupaquier is the director of F&I training for American Financial & Automotive Services Inc. He can be contacted at 866.856.6754, or by e-mail at email@example.com. 30 www.autosuccess.biz
sts ms ls ﬁs lr JosephSchmoke sales and training solution Across the Board Increase in Service and Parts Revenue Place emphasis on they can’t be loyal and not satisﬁed. Culture change in the service department retraining service has resulted in across-the-board increases managers and A professional walk-around will result in in service and parts revenue for dealerships service advisors in additional labor and parts sales on a monthly that have embraced and applied this proven a more customer- basis. This additional revenue comes from approach to serving customers. friendly approach. items that customers may normally do or Joseph Schmoke is the president andThis retraining and continued education is buy elsewhere, such as wheel alignment, founder of University Consultants LLC. Heresulting in dealerships numbers going from batteries, wipers, tires, mud ﬂaps and light can be contacted at 800.901.3058, or by35 percent to 56 percent increases in labor bulbs. e-mail at firstname.lastname@example.org part sales in only a few months.Six or eight days of training seldom imbedsnew habits. Dealerships experiencingsuccess with new methods ﬁnd that trainingand education must be ongoing to beeffective.To affect culture change in a dealership, thedealer-principal and the general managerappreciate that customer patterns havechanged. Customers expect to be treatedwell, and have trouble-free automobiles.Customers in for service, cannot be simplywritten up and routinely sent to the waitingroom. Customers must now be showna higher level of service while buildingassurance that the dealership is the place tobring their vehicle for all things automotive.The components of culture change in adealership’s service department are easy tomaster, which creates customers-for-life. Theﬁrst step is the appointment process. Whenthe customer calls and the appointment isset, a ﬁle is prepared and reviewed the dayprior to the appointment. In it is detailedinformation on the customer and the vehicle’shistory, along with recall information, if any,and recommended service intervals. A call ismade to conﬁrm the appointment and prepthe customer for anything they need to bringwith them. When the customer arrives forhis or her appointment, the service advisorgreets him or her with a smile and a cheery,“Good morning, Mrs. Smith, we’ve beenexpecting you.” Customers react positivelyto being greeted by name by someone who’sbeen expecting them.The next step is the walk-around, whichentails walking around the car with thecustomer, pointing out the condition of thetires, opening the hood and checking theﬂuids right in front of them. The walk-aroundserves more than one purpose. The mostimportant goal it accomplishes is to createa friendly relationship between the serviceadvisor and the customer. A large amount oftrust can be built to ensure customer loyalty.Customers can be satisﬁed and not loyal, butjanuary 2005 31
sts ms ls ﬁs lr KarenDillon sales and training solution Huge Dividends in Happy, Loyal Customers Franchised dealership 3. Provide a tool that offers ease and recommended services with the customer, service departments convenience for those customers who prefer explain his or her vehicle is due for such have experienced to use the Internet to schedule real-time, on- service, what the service entails and how increased competition line, conﬁrmed service appointments. The it beneﬁts them. This open communication from independent use of such a tool: creates trust which results in increased repair facilities and • Increases customer loyalty. proﬁts, CSI and customer loyalty and thequick-lube centers over the past several • Increases customer satisfaction. frequency with which they spend money atyears. A startling statistic shows nearly 70 • Increases customer frequency. your store.percent of new car buyers choose service • Increases customer retention.facilities other than the selling dealership • Increases service department efﬁciency. An example of the right way and wrong wayduring their ownership cycle. Capturing • Increases service department revenue. to sell additional services:this business is critical to the dealership, • Saves time on in-bound telephone calls. (Wrong Way) You haven’t had your tiresboth in service department revenue and • Drives trafﬁc to the dealer’s Web site. rotated for over 9,000 miles. Should becustomer retention. done every 6,000 miles. Want us to do Along with the competition, another factor that?Dealers have attempted to address customer in reduction of service department business (Right Way) The last tire rotation performedperceptions that competitive facilities is the change in manufacturer-recommended on your vehicle was at 30,000 miles. Theare more convenient and less expensive maintenance schedules. The three months, manufacturer recommends tires be rotatedby offering express-lane service for 3,000-mile oil change is a thing of the every 6,000 miles. This is an inexpensivemaintenance items and posting their pricing past. Manufacturers are recommending way to reduce tire wear and extend the lifein the service department. Many have also maintenance services at 5,000 miles, 7,500 of your tires. We could do that today inextended their service department hours, miles or even more extended intervals. conjunction with your other services foroffering more evening hours and, in some only $_______. Wouldn’t you like for us tocases, weekend hours. These factors reducing the number complete this service for you as well? of vehicles coming across the serviceDealerships can be proactive and devise a drive make it imperative for the service The ﬁrst impression is very important, andsystem to re-capture these customers. Some department to maximize the revenue from just as important, is the last impression.recommendations include: those customers they do see. As always, When the customer comes in to pick up his1. Regularly reinforce to the entire staff only necessary services should be sold. You or her vehicle, again reinforce the fact thethe importance of retaining customers in never want the service department to gain dealership values his or her business. Thisservice. a reputation of recommending unnecessary is certainly communicated by the attitude2. Establish a process and hold key people services. of each dealership employee, along withaccountable to ensure the service department either a vacuumed, washed car, a couponis presented fully to each customer at the The initial contact with the customer for a free car wash or a coupon for the nexttime of delivery of his or her vehicle. At when he or she enters the service drive scheduled maintenance. An effective andthat point, the sales person should: is of utmost importance. This is where inexpensive idea is a note from the service• Communicate that all dealership the service department relationship can manager thanking them for their business.associates are aware the customer has many be established and nurtured. Be certain These can be printed in advance, attached tochoices for purchasing and servicing their the customer is greeted promptly and each repair order and, in case the customervehicles and emphasize the dealership’s pleasantly. Make sure someone is available has any questions or concerns, providecommitment to earn the customer’s business to greet every customer as he or she enters either the service manager or customerin both sales and service. the service drive. Complete attention needs relationship manager’s contact information.• Introduce the service manager and/or to be directed toward each customer in forservice advisors. service. How good does it feel when you Spend the time and effort necessary to be• Discuss the dealership’s highly trained arrive at a place of business and you are certain everyone in your service department,technicians and explain they are specialists greeted by name? whether it be the service manager, servicefor the particular vehicles the dealer is advisors, cashier and anyone else who hasselling. Continually train your service advisors contact with the customer, either in person• Discuss the dealership’s investment in in sales and customer service techniques or via telephone, appreciates the importancespecialized tools and equipment to enable so they are prepared in advance for each of each and every customer being treated asit to properly maintain and repair today’s customer as he or she enters the service a “Very Important Person.” This will payvehicles. drive. This includes reviewing all service huge dividends in happy, loyal customers;• Review the normal maintenance required history on the vehicle, conﬁrming all repeat business and additional revenue into keep the factory warranty in effect and necessary parts are available, researching your service, parts and sales departments.explain the dealership maintains all service vehicle recall status and planning to offerrecords. services for which the vehicle is due that the Karen Dillon is the president of• Schedule the customer’s ﬁrst service customer had not requested when making TimeHighway.com. She can be contactedappointment, thus beginning the customer’s the appointment. The most effective at 800.901.3170, or by e-mail atrelationship with the service department. approach is to take time to discuss the email@example.com. 32 www.autosuccess.biz
Subscriptions for $1a Day!NIADA Member subscription rate only $368 year. Nonmember subscription rate only $468 year.Endless hours of education for franchise and independent dealers, sales people, auction executives and vendors. Sample ProgrammingEDUCATIONAL PROGRAMMING M “Your Dealership Service Contract Program: Keeping it a Profit Center”M “How To Sell A Car And Keep It Sold Part 1 - Noncompliant Paperwork: M “Proper Use of Starter Interrupt Devices in a Motor Vehicle Transaction” The Greatest Area of Legal Exposure in a Dealership” M “Warranty Issues in a Motor Vehicle Transaction: Back to the Basics”M “How To Sell A Car And Keep It Sold Part 2 - Commencing the Customer Relationship” SPECIAL FEATURESM “IRS Bank Secrecy Act and Form 8300” M 2004 NIADA Leadership AwardsM “Vehicle Remarketing: Auctions and the Dealer” M 2004 NIADA Quality Dealer AwardsM Preview “How To Break A Car Deal” M Legal, Legislative, Regulatory Affairs ForumM “Standardized Dealer Accounting Part 1 - Standardized M Being Uncommon Accounting and the Financial Statement” M Discover From WithinM “Information Technologies and the Auto Dealer” M Manheim Drive CenterM “The Garage Liability Insurance Crisis” M National Remarketing ConferenceM “How To Attract Lenders To Your Dealership”M “Incoming Call Part 1 - Putting More Fun Back Into NEWS Your Business (What the Receptionist Should Be Saying)” M “Driving Business” (Monthly Industry News With Michael York) Featuring Brad Todd the President of AFC (Automotive Finance Group)M “How to Best Serve the Hispanic Customer” M “Legal, Legislative, Regulatory Review” (Monthly Review with KeithM “Complying With The FTC Used Car Rule” Whann)M “How to Establish and Operate a Related Finance Company” M “The Power of Association” (Monthly Association News Update withM “Steps to a Motor Vehicle Sale: A Review of the Forms Michael Linn) Involved in a Motor Vehicle Transaction” M “Fuel For Thought” (Monthly Dealer Operations Insight with D.J. Harrington)M Certified Master Dealer (CMD) Program PreviewM How To Break A Car Deal (Q & A Session) INDUSTRY SPOTLIGHT M ADESA Vehicle Donation CeremonyM “How To Sell A Car And Keep It Sold Part 3 - The Customer’s Test Drive” M 2004 Expo Vendor HighlightsM “How To Sell A Car And Keep It Sold Part 4 - Privacy, The Patriot Act and Your Dealership” M 2004 NIADA Convention Highlights: Behind the ScenesM “How To Sell A Car And Keep It Sold Part 5 - The FTC Used Car Rule M NIADA At The Columbus Fair Auto Auction (Buyers Guide) and Related Warranty Issues” M 2004 NABD HighlightsM “Incoming Call Part 2 - Watch Which Ear and Words You Use” M Dealer Education OpportunitiesM “Standardized Dealer Accounting Part 2 - Internal Controls in M The Car Counselor (with Keith Whann) the Dealership” For advertising opportunities, contact NIADA at 800.682.3837.
sts ms ls ﬁs lr DavidA.Fish marketing solution Sophisticated e-Newsletters Create Interest, Detect and Qualify Buy Signals Smiles, discussions of form between the e-newsletter and your you to contact them. If they provide you terms, holding hands dealership’s Web site) at the end of an with a phone number, then you already with the spouse, etc., article, in a promotional offer or both. know what to do. If they don’t, respond are buy signals sales When the reader clicks on it, the form right away with an e-mail that compels people pick up on as pops up and provides an opportunity to them to make a showroom appointment customers progress request more information about the topic before a promotion expires.toward buying. A customer walking or offer. E-newsletter services can trackinto your showroom is the ultimate buy this behavior and provide a detailed lead Assessing e-newsletter solutionssignal. What if you could determine if report showing you who in your subscriber There are in-house software products,your customers are sending you buy base is ready for a response from your sales turnkey e-newsletter services and ways tosignals before they ever set foot on your team or business development center. integrate e-newsletter services with yourshowroom ﬂoor? Web site, CRM and DMS systems. The Qualifying the level of interest key is to make sure that the informationWell-written e-newsletters are powerful Not only does content tracking monitor captured by the tracking is as actionable ascustomer retention tools, keeping who is interested, it helps dealers qualify possible. Reports should be automaticallydealerships top of mind between showroom and prioritize prospects by the level of buy generated and easily interpreted. Ideally,visits. They deliver even greater value by signal. If a recipient reads the ﬁrst few individual viewing behaviors shoulddriving customer interest in new products paragraphs of an article but doesn’t click be mapped to corresponding e-mailand promotions and then helping dealers through to the more detailed information addresses.to detect and act upon buy signals arising on a jump page, then he or she may be onlyfrom the customer’s interaction with the mildly interested and not really sending a Gain advance knowledgee-newsletter. buy signal. of customer preferences Continuously ﬁne-tune your e-newsletter,Content creates interest and action However, if a customer or prospect reads with buy signal capabilities, to deliver moreE-newsletters are marketing tools an entire article, perhaps more than once, valuable feedback. Your customers walkthat help you create and then elevate or clicks through to a related promotional into the showroom having done extensivecustomer interest levels. The ﬁrst step is offer, then he or she is sending a real buy research on their vehicle purchase,to add content that pushes customers and signal. your dealership and perhaps even yourprospects to take action. inventory. E-newsletter buy signal reports Recipients who read articles or promotions give you advance knowledge about yourFor example, you can run factory or then click through to your Web site or ﬁll customers.dealership offers to help convert shoppers out a shadow form, are sending very stronginto more of a buying mode. Certain time- buy signals and qualify as hot prospects. Example: You have several 30-year-olddriven offers can boost interest even more customers who have previously purchasedby creating a higher level of urgency. Content tracking functionality not only coupes or sedans. Content tracking showsGood examples are limited-time ﬁnancing enables you to detect these different levels they recently spent a lot of time reading anpromotions or early lease termination. of buy signals, it does so on a recipient- article on mini-vans for growing families.When a reader engages with this content, by-recipient basis. Some e-newsletter Now you have the advantage. You canhe or she is in effect sending a buy signal. solutions provide e-mail addresses mapped anticipate their needs and send an e-mailThe next step is to capture, measure, and to a speciﬁc individual’s interaction with promoting a mini-van offer just for newact upon it. content as part of a sales lead report. This parents — perhaps you offer a car seat to makes the tracking information easily and customers who respond within a certainDetecting buy signals instantly actionable. timeframe. You’re now in a position toThe right content is necessary for creating have a trade-in, upsell and ﬁnancingand elevating interest, and it becomes Respond immediately strategy mapped out by the time themore valuable when you can tell which It’s important to have a systematic approach customer comes in.readers are engaged and what is their level to following up on buy signals generatedof interest. by content tracking reports. Identify who Information is power, in this case, selling on the sales force or marketing team owns power. And you get this selling power byThere is e-newsletter tracking available the responsibility and require immediate extracting the most value out of your e-that shows how recipients interact with follow-up. A prospect who is clicking newsletter — driving interest, detectingarticles and offers. It can tell whether around your e-newsletter and Web site for buy signals, and then following up with anor not a recipient reads an article and information can easily click to competitors’ offer your customer can’t refuse.how far he or she drills down into it. It sites, too. Keep them interested in whatcan also tell you if a customer reviews a your dealership has to offer. David A. Fish is chief executive ofÞcerpromotional offer once or multiple times. of IMN (iMakeNews Inc.) He can beTaking it to the next level, you can embed Recipients who ﬁll out a shadow form when contacted at 800.871.0012, or by e-maila “shadow form” (an offer-speciﬁc inquiry they click through a promotion, intend for at dÞsh@autosuccess.biz. 34 successful solutions at www.autosuccess.biz
sts ms ls ﬁs lr JimAdams sales and training solution The Value of a Professional T.O. By making sure wandering through the inventory he or she your managers are can approach the customer with a ﬂy by controlling the sales early T.O. The sales manager should brieﬂy process and taking introduce themself in a non confrontational one last chance to way and begin the process of asking close the sale, you investigating questions that will lead to awill increase gross proﬁt and sell more product demonstration.units. Sales people must appreciate thata professional T.O. is a step of the sale Identify the customer’s wants and needsnot a sign that they have made a mistake. and help the sales person move theProfessional T.O.s increase closing ratios customer on to a demonstration. Rememberand gross proﬁt. the key to the sale is a professional product demonstration and presentation.It is the sales person’s responsibility to give Fifty percent of customers will buy onthe customer an effective meet and greet, the spot, given a great demonstration andinvestigate the customer’s wants and needs, presentation. Get the customer and the salesbuild rapport and select a product. It is also person headed in the right direction and getthe sales person’s responsibility to provide out of the way. It is important to rememberthe customer a professioanl demonstration that the T.O. does not replace the process.and presentation and ask test closing It is an effective way to move the processquestions through out the sales process to along.move the customer closer to the sale. TheT.O. can come in any part of the sale to help Depending on your sales process, the nextmove the process along or at the desk to aid T.O. can move at different times. To ensurein closing the sale. the total effort with every opportunity,“ every customer that is prepared to leave the dealership without buying must be turned Fifty percent of over to management. customers will A professional T.O. is easy and non confrontational. Sales person, “Before you buy on the spot, folks leave I would like to introduce you given a great to Jim Adams because he is our general sales manager and in case I am not here demonstration ” when you come back, I want you to know and someone else at the dealership.” presentation. At this point the sales person will shut up and let the manager clarify the objection, isolate it, overcome and close the sale. The manager may even send the salesThere are two basic types of T.O.s. The person on a mission. This means getting theearly T.O. and the desk T.O. sales person out of the picture so that the customer can speak freely without losingThe early T.O. should come early and often. face. The customer wants to buy the vehicleA focused desk manager should pay close or he or she would not be at the dealership.attention to the opportunity that is at the Many times a second face will be all it takesdealership at all times. Many managers get to close the sale. It is a powerful part of theside tracked by daily activities and are not professional sales process.focused on the most important event thatis happening in our dealerships right now. A professional T.O. of every opportunityThat is the opportunity in the showroom. that enters our showroom will increaseBy monitoring the showroom trafﬁc, the closing ratios and gross proﬁt, which meanssales manager can watch for and identify to you that your income will increase andproblems on the lot that can lead to a lack ultimately your quality of life too.of product demonstration. Remember, 99percent of the customers that leave your Jim Adams is the general sales managershowroom without a demonstration drive at Roper Kia in Joplin, MO. He can bewill not buy. When the sales manager sees contacted at 800.905.0627, or by e-mail atthat a customer and the sales person are firstname.lastname@example.org 2005 35
sts ms ls ﬁs lr MarkTewart sales and training solution Building Your Business Have you made the a marketing web. List every way you Automate your follow-up using technology. commitment that presently acquire leads such as walk-ins, E-mail, Autoresponder e-mail and Sequential automotive sales is phone prospects, be-backs, referrals, repeat Autoresponder e-mail are all ways to follow- your career choice? customers. Then begin to list new ways up and add value that can be done while Unless you commit, you could begin to acquire leads and how you sleep or on vacation. Video e-mail it’s impossible that you can strengthen or add to your existing and personalization are keys to making a “you will take the necessary steps to create methods of generating leads. connection, removing the impersonal naturethe business you desire. Long-term thinking of e-mail and adding the wow factor.in addition to short-term goals are keys tocontinued success. Business cards All sales people need their own personal Web also need the sales site. The site should include sign-up formsWhen you ﬁrst enter into a sales position, that collect e-mail addresses. The site should80 percent of your time is spent acquiring person’s Web site, be personalized with your picture, family e-mail addresscustomers and 20 percent of your time picture, your own personal story, rewards foris spent maintaining those customers. visiting the site and helpful information forEventually, with the right efforts, that model and slogan. Put a the customer. Your Web site should include call to action onshould be reversed. Eighty percent of your an audio introduction link.time should be spent maintaining yourcustomers and 20 percent to acquire newcustomers. your cards for the Do your business cards look like 99 percent of others sales people’s business cards? customer to come ” Don’t use a picture of a car, use your pictureYou face a paradox of time managementin building your business. The paradox is see you, call you or or caricature. Business cards also need the sales person’s Web site, e-mail address andthat you must work in the business and also visit your Web site. slogan. Put a call to action on your cards forwork on the business. When you are face- the customer to come see you, call you orto-face with customers you are working in visit your Web site.the business but no matter how busy you are, Do you presently have a software programyou must ﬁnd time each day to work on the for following and managing your leads? Maximize trafﬁc by creating a be-back CD.business, as well. Working on the business Not the dealerships program, your program? Create a CD that you give each customerincludes marketing, prospecting, follow-up, Don’t trust anybody or anything to manage who does not buy and invite them to playnetworking, delegating, automating etc. your most important resource – your it on the way home. The CD should include customers. information about you, your dealership andInsurance sales people, real estate sales product that would beneﬁt the customer.people and sales people from many Secondly, do you have a set follow up Include testimonials and a reward for theindustries continually think and act on strategy? How often will you follow up? customer if they come see you.building their business. However, in the auto How will you follow up. What rewardsindustry the majority of sales people seem will you give, and what special offers will Create coupon swaps with businessesaddicted walk-in trafﬁc. Eliminating this you provide to bring them in for service? around you. Visit a local restaurant and offeraddiction is the key to long-term success. That creates the Law of Familiarity and to build their business on their worst trafﬁc Obligation leading to repeats and referrals. day of the week for free. You can build theirLead Generation = Dollar Creation. Begin to business by creating a coupon with an offerbuild multiple streams of leads by building E-mail follow-up and marketing is essential. they approve and then pass these coupons out at work from the cashier, receptionist, and all departments to every customer who Would You Be Interested in a Program That enters your dealership. In return ask that the restaurant pass out coupons from you Pays for Itself Hundreds of Times Over? approved by the dealership with a special offer to come see you. Would you like a cost effective way to increase your referrals? Want to dramatically increase service visits you lose to Once you start the marketing web it will Lube, Mufßer and Tire shops? grow and take on a life of its own. Building a business ﬁrst requires long-term thinking Up Service Visits by 13x a person. and a commitment to the industry as a career. Up Unit Sales via Referral Cards. When you commit, you have already created AUTO a business, only its shape is unﬁnished. Call today for a FREE Sample! 800.723.2590 Mark Tewart is the president of Tewart Enterprises. He can be contacted C A S H C A R D S at 866.429.6844, or by e-mail at email@example.com. 36 www.autosuccess.biz
sts ms ls ﬁs lr KirkManzo sales and training solution Human Nature: Taking the Path of Least Resistance Sales people are the comfort zone, the drive to continue is at best same wherever you reduced and at worst completely eliminated. go, whether those sales people are So as a concerned sales manager (meaning here in the states or you are concerned about keeping your job elsewhere. While since you are also paid and evaluated on therecently working with a dealer group in collective sales results of the group) how doPuerto Rico to implement a menu system you deal with this inherent limitation andfor its F&I department, it quickly became problem?evident in speaking with the managementstaff in both sales and F& I (obviously in The best solution is that you must establish you are their cureSpanish) that the issues they are dealing minimum standards of performance. Askwith regarding their sales force, are the same yourself these questions. Can a bad salesissues you face every day, complacency and person (someone who sells very few cars)inconsistency. still make a living at your dealership? Is there someone working on your sales team thatIn this respect, sales people are really the has no business being at your dealership? Dosame as all people: We become comfortable you keep a sales person around just because,with our situation. This is evident when you “well, he or she is a nice person, and besidesbegin to examine a sales person’s behavior who will get the breakfast biscuits for us inas it relates to his or her sales production the morning?” Remember you are runningfrom month to month. If you were to chart a business, it’s not personal, but if he or sheit on a line graph and provide the printout is going to continue to work for you, he orfor a cardiologist to examine, as though it she must perform to the standards you havewere an EKG read out of a patient, most established to remain on the team.doctors would pronounce the patient (yoursales person) as either DEAD or at the least Well then, what should be the minimumcritically ill! Why? amount? To begin implementing this process, the minimum amount is less important whenBecause the graph would reﬂect the constant compared to your willingness to do what ispeaks and valleys we all see from a sales necessary to give credibility to the program.person’s production. One month they are Meaning, if the minimum number is 8 units These kids andknocking down the pins as quickly as they per month (24 units over 90 days) when millions morecan be set up, selling 15, 18, 20 units or someone sells only 23 units in 90 days will Mary Tyler Mooremore, only to ﬁnd that the next month they you have the intestinal fortitude to eliminate International Chairman have Juvenilestruggle to sell just 7 or 8 units or less. that person from the staff? Diabetes, a disease that threatens their lives every day.So why does this occur? There are certainly On the ﬁrst week of each month, sit downmany opinions, but the explanation David with every sales person in private and None of them can outgrow it.Sadler, founder of The Sadler Institute, establish targets for income, units sold, But we’re closer than ever toa sales training organization, provides is number of ups, demo drives and write ups. a cure. Please, help us makeparticularly insightful. He commented that Review their actual numbers as comparedthe reason a sales person will rocket his or to their forecast numbers from the previous life-saving research possible.her results one month only to subsequently month (this assumes you keep track of these Call 1.800.533.CURE or visitﬂounder the next, is due to that individual’s vital stats). At each meeting, appoint aheadself-image and deﬁned personal worth. In for the next month’s review so you both www.jdrf.org.other words, sales people will only allow place this event in your calendars. This willtheir production (and income) to equal the ensure the consistency you need to give theamount he or she feels worthy to receive. program the accountability and credibility you want.Evidence of this is found when a salesperson sells enough vehicles to achieve a Good luck, and make something happen!monthly income well in excess of what heor she actually needs to meet all of his or Kirk Manzo is the general managerher ﬁnancial obligations. Jim Ziegler calls at Ziegler Supersystems. He can bethis having the “Nut Mentality,” the idea contacted at 800.858.6903, or by e-mail atthat once a sales person reaches that income firstname.lastname@example.org 2005 37
sts ms ls ﬁs lr MichaelYork sales and training solution I Think I’ll Have an Idea Today was a big or direction or idea that you’ll commit to a book? Grow a new business or provide a idea day for me. and begin to pursue. Get going and watch solution or bring value to the marketplace? Had one of those the law of inertia get on your side and How can you do your job better or lately? It started out propel you in the direction of completing, dramatically improve the way you sell your disguised as another competing or winning in whatever you’ve products and services?ordinary day … going over some numbers, chosen.accounting, balancing, you know. Around With what kind of “big idea” thinkers dolunch it shifted to reading some computer Commitment is stronger than motivation, you associate? Or are you just hangingsoftware (not exactly my strong suite), but and new ideas require more than just an around the whiners and complainers?suddenly…BANG! A big idea shows up! I occasional nod of “yeah, that’s a good idea.” What’s the last book you read that inspiredmean an “out of the box so big it’s scary” History conﬁrms that all great ideas were you? (Or don’t you read for inspiration?)kind of an idea. We got excited. Ideas can pursued by individuals with an unshakeablehave that kind of affect on you. Especially commitment. From Tom Edison to Orville Once a great idea appears, it’s time to takebig ones. and Wilbur Wright to Henry Ford to Walt action. All great ideas that we now know Disney to Bill Gates and on and on. about have one thing in common: someoneWhen was your last big idea? Did you act acted on them. In the beginning of newon it? Did you even recognize it as a big Most great ideas we see from the view of information and new ideas, capture now,idea, or just pass it off as a daydream? completed or failed, more of the ﬁnished decide later. The beginning is too soon toMost of the big successes you and I read product variety. That we can easily say, “Oh decide whether or not your new idea is justand hear about and contribute to in today’s sure, why didn’t I think of that one?” Or, a daydream or a whopper of a great idea.marketplace started out as someone’s big “Man, I can’t believe he thought that would Capture it on paper. Give it some thought.idea. And they acted on it! Not a passing work.” At the ﬁnish line it’s easy to make Nurture it. Water it. Give it a chance tothought that sat quietly by and raised its the call on winners and losers. But the real grow. Take some action in the direction ofhand to be noticed as an idea … I’m talking courage is in the beginning. In the believing your idea and see where it can lead.about an idea that cleared the room and and questioning. In the commitment toﬂipped over tables and chairs! An idea so pursue an idea. One caveat though, don’t look for “big that you could think of nothing but this conﬁrmation from those around you onBIG IDEA! your new big idea. Sometimes it’s tough for even successful people to see yourCOOL. I’m writing this to you, to remind In the beginning vision as clearly as you, especially in theme to ACT! And to encourage you to do of new beginning when it’s fresh. In the beginningthe same. To move on your next big thing.Today ended with an idea that could be like information of some radical new “thing” the crowd is seldom right. It takes visionary individualsthat song that debuts at No.1 on the charts. and new ideas, committed to making their ideas work.Or a book that ships as a best-seller. B-I-G capture now, Never stop asking “What if?”Big! A big idea that doesn’t just make yousmile, it makes you laugh out loud! decide later. The Want a list that will help you get started? It’s beginning is too my list, but it might just help you in makingI’m sworn to secrecy in the here and now, soon to decide your list go to www.autosuccess.biz. and whether or notbut I’m trusting that you’ll hear about it click on the box that says: Michael York’sone day. And I’m challenging you to act BIG Idea List.on yours, so that I’ll hear about it one day. your new idea is just a daydream ”Think. And then act. Give it a shot. Go forit. Why not? The new year is here, why notmeet it with some new ideas? They may or a whopper of aseem small at ﬁrst, but get you excited great idea.about asking the “what if” question. Michael York is an author and professional speaker. He can be contacted at 800.668.5015, or by e-mailNot just resolutions (that are soon forgotten How can you make the world a better at email@example.com, or visitand seldom acted upon), but a solid goal place? Have an impact on your kids? Write www.MichaelYork.com. 38 www.autosuccess.biz
TOP 10 BEST OF THE BEST Belinda Wortherspoon, NADA Wolﬁngton Group Call Center Operator 2005THE BEST KEPT SECRET IN THE AUTOMOTIVE INDUSTRY!ASK YOUR 20 GROUP! toll free 800.331.9361D’ELLAG R O U P PONTIAC BUICK GMC CADILLAC CHEVROLET ISUZU LINCOLN MERCURY HONDAwww.dellaautogroup.com Dear Harry: Just thought I would drop you a note to tell you that the promotion was a terriﬁc success. I have done many promotions throughout the years, and the following impressed me: 1. Your people in charge were knowledgeable and were very structured. 2. The support staff were energetic, organized and had a lot of fun. 3. The majority of the customers were ﬁrst time buyers at our store so the residual will beneﬁt our organization for years to come. All in all, you delivered what you pitched. My staff is ready for round two! SALES • SERVICE • PA R T S • LEASING • COLLISION CENTER D’ELLA PONTIAC D’ELLA HONDA D’ELLA LINCOLN D’ELLA HONDA CHRISTOPHER CHEVROLET BUICK GMC CADILLAC 313 Quaker Road MERCURY ISUZU 319 Cornelia Street BUICK PONTIAC 293 Quaker Road Queensbury, NY 12804 1011 Route 9 Plattsburgh, NY 12901 P.O. BOX 472, Upper Wicker St. Queensbury, NY 12804 (518) 793-3811 Lake George Road (518) 563-7686 Ticonderoga, NY 12883 (518) 793-3871 (888) 47-HONDA Queensbury, NY 12804 (800) 564-6632 (518) 585-2842 (800) 462-1968 Fax: (518) 745-0248 (518) 743-1800 Fax: (518) 563-2263 (800) 336-0175
TOP 10BEST OF THE BEST NADA 2005
TOP 10BEST OF THE BEST NADA 2005
TOP 10BEST OF THE BEST NADA 2005
TOP 10 BEST OF THE BEST NADA 2005 RedMcCombs.com HouseofCourtesy.com Sheehy.com ParagonCars.com Tasca.com DickHannah.comEarnhardt.com Schomp.com DaveSmithMotors.com HerbChambers.com
SuccessStory #1 PRE-OWNED INTERNET DEALER SHARES ALL www.DickHannah.com is the #1 pre-owned internet dealer ick Hannah in Portland, exactly what we did. First, we re-evaluated How did you set up your strategy and Oregon uses a new digi- our advertising budget and we realized that your people? tal marketing strategy to we were spending more money than ever The ﬁrst thing we did was to get the right sell hundreds of vehicles before on mass marketing but our results people and that has been the key to oura month and has become the biggest pre- were not increasing as much as we wanted. success. We have an amazing team: Babakowned internet dealer in the US. They used There are more television and radio stations Mohammadi is the GSM for our Kia storethis new strategy to sell hundreds of vehi- today, so it is harder to reach a large audi- and DickSaysYes.com and he also oversees our Customer Relationship Center and Sub-cles and this article will show you how they ence with out being on all or most of the prime department. Angie Turja managesdid it. Joe Orr and Matt Dorsett from Dick stations. In addition, the papers have con- the call center and 8 employees in the Cus-Hannah s organization will answer ques- solidated so their prices are very high. Also, tomer Relationship Center every day. Matttions to give us some insight into how they the trafﬁc they generate is not the most prof- Dorsett oversees all of our internet activ-became the #1 pre-owned internet dealer in itable trafﬁc we have because our ads are ity for the group and there are many otherthe world. right next to many other dealerships and the people who are the reason we have been so primary focus is price which drives down successful. Without great people we wouldWhy did you initially get involved with the average gross proﬁt. The bottom line not have accomplished half of what wethe internet? is that we were spending more to get less have accomplished so far. Most recentlyWe realized that most of our customers and we could not effectively measure our the department just added two more wom-were using the web to research before they return. It became clear that there had to be a en onto the team who will handle Spanish customers only. Dick Hannah s Customerbought their vehicle so we wanted to make better way and the internet was the obvious Relationship Center handles all internet andsure we marketed where most of our cus- choice for targeted marketing. Shortly after sub-prime leads and their primary goal is totomers were. We learned that 70%-80% initiating our new internet marketing strat- set appointments. “Our team does a won-of our customers were starting their shop- egy, we were spending a lot less money and derful job following the process of sellingping online and we wanted to take them attracting a lot more business that we could the appointment and our sales team thenfrom the web to our dealership. So that s measure. sells the car” said Babak.
Success StoryAfter getting your people in place what so we wanted to make sure it was the bestdid you do next? site in the market. Today, our website is ourWe started by getting leads from a number primary source of leads and the closing ratioof 3rd party lead providers. This helped us for our website leads is 2 to 3 times higherget started because we had enough leads than any of our other leads we get. Also,to keep our people productive right away. our site is very easy to use and it gives theWe also used the leads from our website as customer more information than our manu-well. Immediately we learned that the best facturer site does. Lastly, our entire websiteleads came directly from the website but we automatically updates itself so it does notdid not have enough of them. As a result, require a lot of our time or attention.we promoted our own website to increasethe number of high quality leads that had a What do you have on your site that20-25% closing ratio. Today we are using is different from other dealers’ web- Do you use the web to help customersa blend of leads from our own website and sites? get ﬁnanced also?from a select group of 3rd party lead provid- First of all, our site is getting great results. We direct every customer who is interested iners that give us leads that have a high clos- For every thousand people who visit our a vehicle to complete a secured online crediting ratio and a low cost per sale. website it converts 3 to 4 times more visitors application. In addition, we have a special into leads compared to our old site. Most ﬁnance department that sells over 150 cars aWhat lead providers do you use and technology companies who build websites month so we have a speciﬁc website for allwhy? don t understand the car business and they of our sub-prime customers. You can viewWe signed up with many lead providers but build sites that may look good but they don t this site by visiting www.DickHannah.comthere were some of them that gave us terrible get results. Our site builds value in our deal- or by visiting www.DickSaysYes.com. Mostleads so their closing ratio was very low and ership over our competition and ultimately of our sub-prime leads come from the webtheir cost per sale was too high. Therefore, generates more opportunities through the and it has been a critical part of our busi-we only kept a few high quality lead provid- internet, phone and showroom. Our old ness.ers like AutoTrader, Cars.com and Dealix. site did many things that would actuallyToday our primary source of leads and sales hurt our leads and opportunities because it How about Service Online?are now from our own website but the 3rd would qualify customers out of our inven- We have a virtual service and parts depart-party providers give us access to many buy- tory and tell them that we did not have the ment on our website where customers caners who initially want to start with an objec- vehicle they were looking for. Our new site schedule an appointment, buy parts or simplytive 3rd party company. In addition, our lead never qualiﬁes anyone out of stock because view our service menu. In addition, we have aproviders have a national presence and they we have a virtual inventory that allows the personal website for each of our customers onhave exposure in places we do not. Our goal customer to pick any car they want. In addi- our Virtual Dealership. The personal websitesis to leverage their exposure while we make tion, customer s can take a virtual test drive are designed speciﬁcally for the customer andsure that our website is the dominant online on our site which gives them a multi-media it provides them with critical product infor-buying service in our region. tour of the vehicle they are interested in. mation including recalls, service reminders These tours have sliding pictures, animation and so on.How did you set up your website? and sound. The best part is that these multi-We had some pretty good template websitesthrough Cobalt but they were not generat-ing a lot of sales so we decided to get a new “DickHannah.com has helped us sell hundreds of vehicleswebsite through a company called BZRe- a month and it is completely different from any other sitesults.com. BZ created our site and we usedtheir tools and training to establish ourselves in the market.” Joe Orr, DickHannah.comas the primary internet buying service forour region. The key to our new website is media tours stream on a low speed 56k con- How do you manage all of the leadsthat it generates internet leads, phone trafﬁc nection so 100% of our customers on a dial your website generates?and showroom trafﬁc while promoting all of up internet connection can view them. We use a web-based customer managementour proﬁt centers: New, Used, F&I, Service system called “BuzzTrak” that helps us cap-& Parts. Are there any other unique things that ture and control all of our prospects in one customers can do on your website? data base. All of our leads from every sourceWhat has made your website so suc- Customers can research product informa- are sent into one tool and it will automati-cessful? tion, read positive reviews, view compari- cally source and distribute the right leads toOur old website looked good but it didn t sons, get Kelley blue book information and the right people based on their schedule. Wegenerate results. It was just an information much more. Also, when a customer is look- use the tool for our daily planner and it re-center and it did not do a good job creating ing for a pre-owned vehicle they can view minds us to do the things we need to do to beleads and trafﬁc for the dealership. Our new multiple pictures, print a brochure, view a productive. In addition, it automates many ofwebsite is more like a marketing center and lemon check, send the vehicle to a friend the activities we would otherwise need to doit drives trafﬁc and sales. The bottom line is and they can even view a multi-media pre- manually. The best part of our tool is that itthat it is a very important marketing tool and sentation that shows them what we do to automates the majority of our email processesthousands of prospects visit it every month certify their pre-owned vehicle. and prospect follow up which gives us more time to focus on selling cars.
Success StoryWhat is automated and why is it impor- ple are doing and I can drill down to view the tomers from other sites to our sites. Searchtant? details if I want. For example, it will show engines are very important and our websiteThe automation ensures that the process is the salespeople that gathered email address- is optimized for all the major search enginesdone right all of the time and it solves the es and the ones that don t. and key search phrases. Lastly, we have re-problem of people not executing consistent- lationships with many regional websites thatly. In addition, by automating most of the How did you market your site? link customers to our site. Fortunately, ourfollow up it allows us to handle more leads Initially we added our website address to all marketing strategy has done an incredibleper person which saves us a lot of money in of our ads including print, direct mail and job in creating more trafﬁc to our site and instafﬁng. others. Then we had a lot of success with turn this has dramatically increased our leads our email marketing campaigns. We send and sales.Do you automate all of your email cam- out thousands of multi-media emails calledpaigns? “buzzmails” to our database every month. What type of people do you staff yourNo. We automate our initial response to cus- These emails are like little commercials that department with?tomer inquiries, prospect follow up for 4 stream over a low speed internet connection. We look for people with great sales, phonemonths and ongoing follow up after the sale What is unique about these movie mails is and follow up skills. The key to our people sincluding CSI, Service reminders, Birthdays, that their ﬁle size is compressed so they can success is that they have been trained on theAnniversaries, Renewals ect… However, we stream on a low speed internet connection process to sell the appointment rather thanhave other types of campaigns as well. We and our customers do not need to download trying to sell the car over the phone. In par-use Buzz Trak to send out a lot of permis- anything to view them. Most importantly, ticular, our best people follow the phonesion based bulk email campaigns and direct they drive a lot of trafﬁc to our site and to guide and they understand how to answer allmail campaigns to drive more trafﬁc. Our our dealership. The best part is that we don t of the customer s questions and objections.system has hundreds of pre-packaged multi- have to pay anything to send them and I can The good part is that if they do a great jobmedia buzzmails that we can send out to send a campaign in a few seconds from any selling the appointment the closing ratio ofcustomers with a click of a button. This is computer that has internet access. We also do showed appointments is very high.an important part of our system because it a lot of online marketing so we can drive cus-helps market our website and our dealershipwithout spending any additional money onadvertising. One important thing to note isthat you cannot do email campaigns without -DickHannah.com becomes the #1 Pre-Owned eDealer in the world.a large email data base so we have a strategyto gather and store our emails. -Dick Hannah put the right people in place and that was the key to their great results.How do you gather emails in the deal-ership? -Dick Hannah shifted their advertising strategy to focus on the internet because 70-80% of their customersThere are many ways to gather emails. We start their shopping online.began by gathering all of the emails we al-ready had in our dealership management -Dick Hannah uses internet marketing to improve their sales and service proﬁts and to reduce their advertisingsystem and lead management tools. Our expense and cost per sale.sales and service team also ask every cus-tomer for their email address. The key to thisprocess is that they always ask the customer -Dick Hannah has dominated their market on the internet by setting up their own regional buying service atfor their email and attach a beneﬁt to the www.DickHannah.com.question. For example, the sales team asksall of our prospects if they want us to send -DickHannah.com, their website has won many awards.them a “Free Virtual Test Drive.” The cus-tomer always say yes and then gives us theirprimary email. We also added the email ﬁeld -Dick Hannah hired BZResults.com to set up their e-marketing system, websites, crm tools & training.to all of our forms and we put merchandis-ing around the dealership with posters that -Dick Hannah uses email marketing to attract new buyers because it is a very cheap advertising medium thatsay “Do you want a FREE VIRTUAL TEST gives them a high return.DRIVE?” In service we have posters thatoffer customers a “Free Personal Website”and the cashier has small cards the custom- -Dick Hannah has trained their people on a successful process to improve their closing ratio and sales.ers can ﬁll out with their email. We measureour email gathering process every day and I -Dick Hannah uses a customer management system to manage and measure all of their customer activity.get an automated report every morning thatgives me an overview of all of our oppor-tunities from the previous day including the -Dick Hannah uses their CRM tool to automate their email and follow up activity. This automation guaranteestype of prospect (showroom, phone, internet, that things get done and it allows the sales team to handle more leads per person.etc.), the source, the status and more. I canuse this to get a global view of what my peo- -Dick Hannah have increased their sales and proﬁts by expanding their strategy to target Hispanic buyers.
Success StoryWhat is your Process for handling people and the majority of our follow up is us versus our competition. In addition, F&Ileads? automated. I get a report every morning that and accessories are an important componentWe ﬂow charted our sales process in our gives me an overview of all of the previous for internet sales because when it is handledinitial training meeting. We have found that days opportunities on the showroom, phone properly the internet customers back endwhen we stick to the process we get great and internet along with the status of where proﬁt can exceed the back end proﬁt of tra-results. The most important part of the pro- they are in the process and the key metrics I ditional showroom deals. In the end, ourcess is the phone and our ability to sell the need to focus on to improve our results. success de-appointment. All of our internet leads are pends on howautomatically imported into one tool that or- How do you handle your pricing? well we buildganizes them by source and distributes them Our average gross proﬁt is usually similar value in ourto the right people in the department. In ad- to our showroom gross proﬁt. The most im- dealership,dition, the tool automates the majority of portant part of our pricing strategy is that people andthe email and follow up activity so our team we try to sell the appointment and not the products andcan spend more time on the phone setting price. When we do address the price we ask not just price.appointments. We have been able to almost for a fair proﬁt and we also emphasize thedouble our closing ratio by following up with unique beneﬁts they receive by buying from“DickHannah.com has helped us sell hundreds of vehicles a monthand it is completely different from any other site in the market.” OLD WAY Customers began their shopping at the dealership NEW WAY Now Over 80% Start Shopping on the Net