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                                               July 2008
July 2008

                                 HOW TO MULTIPLY TIME
                                                                      8   TomHopkins        Colossians 3:15
                                                                                            Let the peace of Christ rule in your hearts, since
                                                                                            as members of one body you were called to peace.
                       PLEASE STEP OUT OF THE LINE
                                                                     10   D.J.Harrington
                                                                                            address:
                                                                                            3834 Taylorsville Rd.
       WHAT TO DO WITH YOUR BEST SALESPERSON
                                                                     11   JohnBrentlinger   Building A, Ste. 1B
                                                                                            Louisville Kentucky 40220
                                                 GET TANKED
            The #1 Direct Mail Campaign in the Automotive Industry   12   JimmyPeters       phone / fax:
                                                                                            877.818.6620 / 502.588.3170
      CHALLENGING THE CORE INVENTORY CONCEPT
                                                                     14   DalePollak        web:
                                                                                            AutoSuccessOnline.com

                                                                     15
          ADOPT AN OPEN SERVICE DRIVEWAY AND                              GarySimmons       AutoSuccessPodcast.com
             GENERATE $200,000 MORE THIS YEAR
                                                                                            team:

                                                                     18
                           SERVICE: PROFIT CENTER OR                      ChuckPatton       Susan Givens
                            ADVERTISING INVESTMENT?                                         Publisher
                                                                          & TriciaPatton
                                                                                            sgivens1@autosuccessonline.com
     TOUGH TIMES NEVER LAST - TOUGH PEOPLE DO
                                                                     20   PaulSnider
                                                                                            Thomas Williams
                                                                                            VP & Creative Director
                              FIGHTING MURPHY’S LAW
                                                                     21   SteveBrazill      design@autosuccessonline.com

                                                                                            Dave Davis
               THE FORMULA FOR WINNING - FOUR
                               FAIL SAFE STEPS                       22   PaulD.Cummings    Editor and Creative Strategist
                                                                                            ddavis@autosuccessonline.com

                SEE SPOT RUN - SEEN SPOT LATELY?
                                   KEEP READING                      26   MichaelYork       Brian Ankney
                                                                                            Sales-Improvement Strategist
                                                                                            super6@autosuccessonline.com
                  ONE TOOL = THREE SIMPLE STEPS
                        TO GROW YOUR BUSINESS                        28   LauraNoonan
                                                                                            Scott Schaeffer
                                                                                            Sales-Improvement Strategist
                                         WHAT’S IN A TITLE
                                                                     29   MarcSmith         sschaeffer@autosuccessonline.com

                                                                                            general information:
            PREPARATION TIME IS NEVER LOST TIME
                                                                     32   JoeCala           info@autosuccessonline.com

                                                                                            eNewsletter:
                                            ENEWSLETTERS
              Building a Stronger Relationship With Your Customers   34   DaymondDecker     enews@autosuccessonline.com
                                                                                            AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd.,

                                 ONLINE MEASUREMENT
                                                                     36
                                                                                            Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170.
                                                                          DennisGalbraith   Direct all subscription and customer service inquiries to 877.818.6620 or
              What Your Lead Management System Won’t Tell You                               info@autosuccessonline.com. Subscription rate is $69 per year.
                                                                                            AutoSuccess welcomes unsolicited editorials and graphics (not responsible

                        INTERNET SALES 20 GROUP VII
                                                                     38
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                                                                                            expressed are not necessarily those of AutoSuccess and by no means
                 TRAINING, NEGATIVITY AND ADVICE
                                                                     40   FranTaylor        reflect any guarantees. AutoSuccess accepts no liability in respect of the
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                                                                                            of the content of any other magazine to which this magazine may be linked



                                                                     41
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            EASIER ACCESS TO SERVICE CONTRACT                             MikeHoffey        changes in procedures.© All contents copyrighted by AutoSuccess

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                                                                     42
                                                                                            from AutoSuccess. AutoSuccess may occasionally make readers’ names
                         THIRD PARTY LEADS AND BDC                        BrianHall         available to other companies whose products and/or services may be of
                                             Now More Than Ever                             interest; readers may request that names be removed by calling
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                                                                                            AutoSuccess Magazine, 3834 Taylorsville Rd., Building A, Ste. 1B



12
                                                                                            Louisville, KY 40220.




                                   20                                 38                    helping to support...
STS
                                                 TomHopkins
sales&trainingsolution



                                                 HOW TO
                                                 MULTIPLY TIME
                                                 Time is as precious     workday world. I know it can be hard to                  Successful people in the automobile industry
                                                 a commodity             force yourself to do this, but believe me,               always jump on the most important thing
                         as money. I’ve written many articles            the benefits are incredible.                              first. What is the most important thing that
                         specifically about how to make sales                                                                      you should do right now? Learning to answer
                         (translated “making money”). Now, let’s         When you are involved with opportunity                   that question quickly then acting on it will
                         explore some ways you can get more sales        time, you need to be tough about it. It’s                increase your productivity ten-fold. If you
                         productivity out of the time you have to        amazing how much of our working life can                 have a weekly sales goal, start working on it
                         invest in your automotive sales career.         be eaten up by trivial interruptions unless              as early in the day as your potential clients
                                                                         you make a conscious effort not to let that              are available. Don’t wait until you take care
                         Everyone knows you can make twice the           happen. Successful people are tough about                of other things before you start selling. The
                         income by working twice the number              the types of interruptions they allow during             weight of that goal will crush you by day’s
                         of hours, putting forth twice the amount        productive business time. They’re always                 end. Start doing this every morning, keep on
                         of effort. The secret to true success is in     on the lookout for busy work and finding                  doing it, and you’ll soon discover that you’re
                         making the time you currently invest in         ways to eliminate it.                                    not worrying anymore. You’re enjoying the




                                                                                                                  our
                         your business twice as productive.                                                                       work, you’re feeling good about yourself,



                                                                                                              est in y
                                                                                                                                  and you know you’re winning.
                                                                       the se


                         To begin with, you must understand that

                                                                                                              ntly inv
                         there are two entirely different kinds of                                                                If a challenge arises that you don’t know
                                                                             cr


                         time. The first is opportunity time, during                                                               what to do about, do your best to come
                                                                           et to t

                                                                                                       u curre
                         which you achieve your goals such as                                                                     up with an answer, but don’t dwell on it
                         internalizing information on new vehicles,                                                               too long. If you’re not satisfied that what
                                                                                                 time yo
                                                                                  rue su


                         getting your hands, eyes and ears on those                                                               you’ve come up with is the best solution,
                         new vehicles and providing follow up                                                                     write down how you’d like to resolve it,
                         service to existing clients. The second is                                                               even if what you write seems totally absurd.
                                                                                              king the
                                                                                        ccess



                         replenishment time, during which you                                                                     Then, set it aside and commit to returning
                         rebuild your strength through exercise,                                                                  to it later that day. Let your mind work
                                                                                            is in ma




                         recreation, relaxation and sleep.                                        bus
                                                                                                     ine
                                                                                                                                  on other things for awhile. Then, when
                                                                                                        ss                        you come back to the challenge, you’ll
                                                                                                           twi
                                                                                                              ce
                         If you can’t get the hang of switching from                                             as
                                                                                                                    pro           likely have a fresh perspective on it and
                         opportunity time to replenishment time,                                                       duc        find a better solution. If it’s still not the
                                                                                                                          tive
                         you’ll soon face a period of burnout where                                                           .   ideal solution, do your best in handling it
                         you’re neither successful nor in sound                                                                   today. The longer you let challenges lie
                         physical condition. You’ll run out of fuel.                                                              unresolved, the more likely they are to grow
                         Then your flame will go out, your power                                                                   into something that will be very difficult
                         will shut off and you’ll drop like a stone.                                                              to resolve. Just tell yourself, “I’m going to
                                                                         Busy work is usually pointless stuff that                handle this to the best of my ability today
                         People who appear to be highly productive       you don’t mind doing because it’s easy,                  and will learn from this experience.”
                         often suffer flameout. Many have lost            and doing it makes a marvelous excuse
                         several years as a result. Some have            for not tackling the hard things you know                Stay tough about your opportunity time.
                         quenched their flames so thoroughly that         you should do. The key is to figure out the               Don’t fritter it away doing busy work or
                         they never managed to get their engines         best time of day each day for selling and to             engaging in unnecessary activities. When it’s
                         going again. They gave up on their dreams       focus your efforts on sales activities during            time to sell, sell! But when it’s time to kick
                         of having a successful career.                  that time. Don’t do filing or clean your                  back and relax, do that with gusto as well.
                                                                         desk during sales time. Yes, it needs to be
                         The dangerous part is that flameout sneaks       done, but not during selling time.                       World-renowned master sales trainer Tom
                         up on you. Don’t try to fly high when your                                                                Hopkins is the chairman of Tom Hopkins
                         tanks are low. Touch down and refuel            If you’re going to be a winner, you will                 International. He can be contacted at
                         your spirits — spend a few days away in a       always have time for the tough end of your               866.347.6148, or by e-mail at
                         completely different atmosphere from your       job because that’s what produces results.                thopkins@autosuccessonline.com.
 8




  www.autosuccessonline.com
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                                                       anything but Spray and Pray.
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                                                          D.J.Harrington
sales&trainingsolution



                                                          PLEASE STEP OUT
                                                          OF THE LINE
                                                 Processionary                                     procession found himself nose to tail with                       flower pot for seven days and seven nights
                                                 caterpillars travel in                            the last caterpillar in the procession, forming                  and until they died from starvation and
                         long and wavy lines, one creature behind                                  a circle without an end or a beginning.                          exhaustion. There was an ample supply of
                         the other. A French entomologist once led                                                                                                  food close at hand and very visible, but it
                         a group of these caterpillars onto a rim of                               Through sheer force of habit and, of course,                     was outside the range of the circle, so the
                         a large flower pot so that the leader of the                               instinct, the ring of caterpillars circled the                   caterpillars continued along the beaten path.

                                                                                                                                                                    A lot of us often behave in a similar way.
                                                                                                                                                                    Habit patterns and our ways of thinking

                               GET MORE PHONE CALLS -                                                                                                               become deeply established and it seems
                                                                                                                                                                    easier and more comfortable to follow them
                                                                                                                                                                    rather than accept change — even when

                                  SELL MORE CARS!                                                                                                                   food to live by is right there.

                                                                                                                                                                    I know if someone shouts “FIRE,” it is
                                                                                                                                                                    automatic to blindly follow the crowd,
                                                                                                                                                                    and many thousands have needlessly died
                                                                                                                                                                    because of it. How many stop to ask, “Is
                             Custom 800® numbers are PROVEN to:                                                                                                     this really the best way out of here?” So
                                                                                                                                                                    many people “miss the boat” because it’s
                                         Get higher recall rates from your radio & TV ads                                                                           easier and less demanding to follow without
                                                                                                                                                                    questioning the qualifications of the people
                                         Improve consumer response to your print ads                                                                                just ahead of us and just maybe do some
                                                                                                                                                                    independent checking and thinking.

                                                                                                                                                                    A hard thing for most of us is to fully
                                                                                                                                                                    understand is that people in such a
                              We have dozens of powerful Custom 800 Numbers for automotive                                                                          large number can be so wrong (like the
                              sales and service departments. Numbers like:                                                                                          caterpillars going around and around the
                                                                                                                                                                    edge of a flower pot with food and life
                                                                                                                                                                    just a short distance away). It’s sad, but
                                    1-800-NEW-CARS®                                                   1-800-NEW-RIDE                                                most people are living that way. If we do
                                    1-800-NEW-CREDIT                                                  1-800-NEW-WHEELS                                              a little checking, you will discover that
                                                                                                                                                                    throughout all recorded history, the majority
                                    1-800-NEW-DEAL                                                    1-800-NEXT-CAR                                                of mankind has an unbroken record of being
                                    1-800-NEW-LEASE                                                   1-800-PRE-OWNED                                               wrong about most things — especially the
                                                                                                                                                                    important things.
                                                                                                                                ...and many more.
                               ® Custom 800 is a registered trademark of 800response. | ® 1-800-NEW-CARS is a registered trademark of an affiliate of 800response.
                                                                                                                                                                    It’s difficult for people to come to the
                                                                                                                                                                    understanding that only a small group of

                                                                                                                 Call
                                                                                                                                                                    people ever really understand about life,
                                                                                                                                                                    about living abundantly and successfully.
                                                                                                                                                                    Some people wait passively for success to
                                                                                                         1-800-NEW-SALES                                            come to them, like our caterpillars going
                                                                                                                                                                    around and around, following nose to tail
                                                                                                          today and get the                                         thinking that other people must know how
                                                                                                                                                                    to live successfully.

                                                                                                         perfect number for                                         Please remember, it’s a good idea to step out
                                                                                                                                                                    of the line every once in a while and look up
                                                                                                           your dealership!                                         ahead to see if the line is going where you
                                                                                                                                                                    want it to go. If it’s not, step out of the line.


                                                                                                                                                                    D. J. Harrington is an author, journalist,
                                                                                                                                                                    seminar leader, international trainer,
                                                                                                      More Calls, More Sales, More Profits                          and marketing consultant. He can be
 10




                                                                                                                                                                    contacted at 866.855.5781, or by e-mail
                                                                                                                                                                    at djharrington@autosuccessonline.com.
  www.autosuccessonline.com
MS
                                            JohnBrentlinger
marketingsolution


                                            WHAT TO DO
                                            WITH YOUR BEST
                                            SALESPERSON
                                             There are three          get it yourself. If you want perfect
                                             general criteria         computer records every day, hire a bunch
                    for “best” salesperson: They do their own         of computer nerds who love computers
                    work, they have constant high margins             but couldn’t sell water in the Sahara.
                    and they have high volume. Those are              Leave your best salesperson alone. They
                    the standards. We’re not talking about the        don’t need you to silly-small-talk their
                    favorite child who skates others, who is          customers, they don’t need you to call their
                    fed by the manager and who sacrifices              customers, check their figures, desk their
                    margin for volume (volume is vanity; profit        deals and close their sales. That’s why they
                    is sanity). Your best salesperson meets the       are the best. Leave them alone. They will
                    standards and encourages other salespeople        sell more and earn more, and so will you.
                    by his or her work ethic and example.
                                                                      3. Increase their commissions. The
                    What you do with your best salesperson            salesperson who does the most should be
                    determines the vitality of your dealership.       paid the best. This one thing will raise
                    All of the other salespeople are watching         the standard for all the other salespeople.
                    your best salesperson. If you treat your          Anyone who complains about how much
                    best salesperson poorly, the others will not      the best salesperson makes should be
                    aspire to greatness, and they will remain         fired immediately. If other salespeople
                    mediocre for as long as they work for you.        complain, fire them. If the person who
                    If you want mediocre salespeople, the             writes the checks complains, fire them. If
                    formula is simple: Hire anyone, micro-            a manager complains that best salesperson
                    manage everyone and train no one.                 makes too much money, fire them. The
                                                                      salesperson who does the work and makes
                    What To Do with Your Best
                                                                      the money should be treated like a rock
                    Salesperson
                                                                      star. If you can’t, don’t or won’t treat your
                    1. Do not make them team players. All
                                                                      best salesperson as your best salesperson,
                    salespeople are not equal. Conventional
                                                                      you won’t have to worry about how to treat
                    nonsense about everyone doing everything
                                                                      your best salesperson, because you won’t
                    the same way leads to mediocre madness,
                                                                      have one.
                    ie: “We have a system and you will learn it
                    and follow it or else.” Oh goody, let’s all be
                                                                      4. Do not make them managers. There
                    mediocre together. Think about a baseball
                                                                      is no commission on management. All
                    team. Every player has different strengths
                                                                      commissions come from selling a product
                    and abilities. They are not the same, they
                                                                      at a profit. Don’t take your best earners,
                    are not equal, they are paid differently and
                                                                      your best workers, your best examples
                    some are better than others. Imagine a team
                                                                      to the rest of the salespeople and make
                    where everyone hit like the pitcher, squatted
                                                                      them work longer hours for less pay, less
                    like the catcher and scratched like the
                                                                      satisfaction and less incentive. Great
                    manager. That is your mediocre sales force
                                                                      salespeople are great because they love to
                    when you try to make them all do all of the
                                                                      produce, to sell and to meet the goals they
                    same things in the same way. That has not
                                                                      set for themselves. Don’t ruin your sales
                    worked, is not working and will not work.
                                                                      force by showing them that if they be the
                    Be brave enough, be smart enough, be
                                                                      best they can be, they will be rewarded by
                    secure enough and control yourself enough
                                                                      being made a manager. Let them sell, let
                    to let your best salesperson think differently,
                                                                      them grow, let them earn.
                    work differently, sell differently and while
                    doing differently, produce great profit for
                                                                      Let your best salesperson be as great
                    themselves and the dealership. Your greatest
                                                                      as they want to be. Don’t make them
                    test as a manager is this: Do you have the
                                                                      team players, don’t micro-manage them,
                    ability to lead great salespeople?
                                                                      pay them more and just let them sell.
                                                                      Treat them like rock stars, and the entire
                    2. Leave them alone. Don’t micro-manage
                                                                      dealership will benefit.
                    them. Don’t make them follow all the
                    silly rules that the six-car-a-month people       John Brentlinger is a sales and
                    follow. Silly rules make mediocre teams           management trainer, executive coach
                    who can follow silly rules but can’t sell         and author. He can be contacted
                                                                                                                                                  11




                    anything. If you want the name, address           at 866.859.6504, or by e-mail at
                    and phone number of every prospect,               jbrentlinger@autosuccessonline.com.

                                                                                    the #1 sales-improvement magazine for the automotive professional
FS
featuresolution




                                                                                                                             GET TANKED                                                    The #1 Direct Mail Cam
                                                                                                                                                                                                                 paign
                                                                                                                                                                                             in the Automotive Indust
                                                                                                                                                                                                                     ry
                       JimmyPeters

                      The current economic clim                                                                                                                                                                                           With gas prices over
                                                     ate, with banks                                                                                                                                                                                             $4 a gallon regardles
                                                                           Why do gas mailers work?                                                                                  customers. Using a gas ma                            my marketing efforts                          s of what I was doing
                      tightening stipulations for                                                         The gas mailer                                                                                            iler will get                               were losing their cat
                                                                                                                                                                                                                                                                                      ch and my ROI was
                                                    loans and             mail campaign hits a nerve.                                                                                                                                      the downturn so I tur
                                                                                                                                                                                                                                                                 ned                                           on
                      gas prices soaring, has ma                                                           Everyone in                                                               your customers emotiona                              weeks ago to see if the to a longtime marketing partner a few
                                                   de effective                                                                                                                                                   lly motivated and                                y could help turn thin
                      marketing more importan                             the United States is feelin                                                                                create a strong call to act                        have they! Jimmy sug                               gs around and boy
                                                  t than ever. Every                                    g the pinch from                                                                                         ion. A great way                              gested I try out their
                     marketing dollar must hav                            high gas prices in one wa                                                                                 to stand out is with a follow                         that offers my custom                       new Get Tanked mailer
                                                   e maximum                                           y or another.                                                                                                 -up postcard                                ers a $50 gas vouche
                     impact. Banks have becom                             Everyone opens a gas ma                                                                                   to remind them that they                                 one of our vehicles (wi                      r just for test driving
                                                    e very tight                                       iler simply                                                                                              need to visit to         have been seeing clo        th no extra expense
                                                                          because it offers some rel                                                                                get their $50 in gas. Use                                                                                to us) and so far I
                     lending to those with the                                                        ief at a time when                                                                                                                                        se to a 4% response
                                                 480 to 559 credit                                                                                                                                             a message such             reps an opportunity                          which gives my sales
                     scores. These deals are not                         gas has hit $4 or more per                                                                                 as, “This is your last notice                                               to do their job and sel
                                                    getting bought                                      gallon. Who                                                                                                 to stop by and       pumped and our ma                              l product. My staff is
                                                                         wouldn’t open it?                                                                                                                                                                    rketing ROI has skyroc
                    without $2,000 to $3,000                                                                                                                                       take a test drive to receiv                                                                         keted with us seeing
                                                 down. The hedge                                                                                                                                               e your $50 gas                               deals make as much
                                                                                                                                                                                                                                                                                    as 5 or 6 grand a cop
                    fees of 15 to 20 percent ma                                                                                                                                    certificate.” This will inv                                                                                                  y!
                                                   ke these deals                                                                                                                                              oke the fear of
                    very difficult — if not im                            The motivation is the me                                                                                  loss and push many potent
                                                possible — to                                        ssage. Fifty                                                                                                 ial customers                                                                 Clint Rainer
                    structure. Dealerships are                           dollars in free gas motivate                                                                              over the edge and drive the                                                                       General Sales Manag
                                                 looking for ways                                       s people.                                                                                                  m to your                                                                              er
                   to increase sales from the                           Imagine if you put a bunch                                                                                 dealership.                                                                                         Bill Heard Chevrolet
                                                ir marketing                                             of big
                   dollars and drive in more                            billboards up that said, “C                                                                                                                                                                                          Union City, GA
                                                high-score traffic                                     ome Test Drive
                   that can be more easily fi                            Any of Our New or Pre-O                                                                                    Compound the effect of you
                                              nanced. One great                                       wned Vehicles                                                                                             r gas mailer               “WOW!!! Get Tanked
                   way to do this is to increa                          and We Will Give You $50                                                                                  and last-chance postcard                                                         mailer has delivered
                                               se response rates                                        Worth of Free                                                                                       with a voice                      significantly better-th                    great
                  and target your desired cus                          Gas!” How many people                                                                                      broadcast. Use a voice ma                                                          an-ever GROSSES to success and
                                                 tomer type.                                        would respond to                                                                                         il broadcast                   My market is a tough
                                                                                                                                                                                                                                                                    one, but GET TANK
                                                                                                                                                                                                                                                                                            our dealership.
                  New ideas in direct mail,                            this message and be on you                                                                                 while your sale is going on                              in quality traffic that                       ED MAILER brings
                                               like gas mailer                                         r lot to get that      the possibilities? Well, the                                                     to remind them                                     gets SOLD. I recom
                  campaigns, are helping inn                           free $50 of fuel? Your lot                                                            chances are          not to miss out. Use a sim                                                                         mend it for your next
                                                 ovative dealers                                    would be a mad            that, even with the marke                                                      ple pre-recorded                                                          direct sales event.”
                  achieve up to a 5 to 10 per                          house. The message would                                                           t in its current        phone message asking the
                                                cent response.                                         motivate tons of      condition and gas prices                                                       m to come to
                                                                      people. The problem with                                                           sky high, you           your dealership and take
                                                                                                     the billboard is        could very likely have a rec                                                  a test drive and                                                              Michael Mancano
                                                                      that you cannot target the                                                             ord month at        pick up their $50 gas certifi                                                                            General Manager
                                                                                                    individuals you          your dealership — just lik                                                       cate and tells
                                                                      want to visit your dealershi                                                        e many other           them of the specials you                                                                                     Honda City
                                                                                                      p. You simply          dealerships have been abl                                                     have going on.
                                                                      cannot target the exact dem                                                        e to do by using        There is no way for you to                                                                                   Chicago, IL
                                                                                                      ographic you           gas mailer program campai                                                       lose with a
                                                                      want to have visit your dea                                                           gns.                 properly planned and imple                             The get tanked mailer
                                                                                                     lership with                                                                                             mented gas                                      I did with Jimmy gave
                                                                     any form of mass media                                                                                      mailer campaign.                                        response as well as gre                      me a tremendous
                                                                                                 advertising such             With this mailer, you sho                                                                                                          at gross per copy. I ran
                                                                     as a billboard, newspaper                                                           uld target people                                                                                                                $4218 a copy
                                                                                                 , television or             with a 580 to 679 credit sco                                                                                                        and had a 2% show rati
                                                                                                                                                                                                                                                                                          o. Thank You”
                                                                     radio. It is important to rem                                                           re who have        The bottom line is you hav
                                                                                                     ember that you          70 to 99 percent of their aut                                                    e to make sure
                                                                     can generate tons of floor                                                               o loan paid        that you get ups on your
                                                                                                  traffic to your             off. These are the people                                                     lot who can buy,                                                               Barney Lopez
                                                                     dealership in any market                                                           whom the banks          and that is why you need                                                                        General Sales Manag
                                                                                                 with the right              are willing to finance. Th                                                      to make sure                                                Cloverleaf Chrysler Do        er
                                                                     message and call to action                                                         ey have had their       your lists are less than 24                                                                                    dge Jeep
                                                                                                  .                          vehicles for awhile, and the                                                   hours old and
                                                                                                                                                            y’re ready to go   are targeted to the criteria                                                                                 Decatur, AL
                                                                                                                            home in one of yours. Th                                                         you can sell.
                                                                     Now, think if you take thi                                                         ese motivated and      When the market is hard,
                                                                                                 s highly effective         able buyers are the ones wh                                                     we must be more
                                                                    call to action that solicits                                                           om you want         aggressive to make sure we
                                                                                                 an emotional               to visit your store. You wo                                                       get our share;             “With the economy
                                                                    response and desire from                                                             n’t be struggling     ask yourself if you are doi                                                   the way it is to be ho
                                                                                                 your target               to hang these deals on Mo                                                        ng what you               anything was going
                                                                                                                                                                                                                                                         to work the same as nest I wasn’t sure if
                                                                    customer and condense it                                                            nday morning           need to do, or are you jus                                I was wrong as Jim                        it did in days past bu
                                                                                                 into a form of            or calling people to unwind                                                    t standing by?                                    my Peters has prove                           t
                                                                    advertising such as direct                                                             deals you                                                                    with the Get Tanke                            n to me once again
                                                                                                 mail. With direct         can’t get done. You will jus                                                                                                    d piece I did that I
                                                                                                                                                                                                                                                                                 can always depend
                                                                    mail, you can specifically                                                             t have happy                                                                my advertising comp
                                                                                                 target your                                                                                                                                              any to give a boos                           on
                                                                   desired customer, a custom                              customers driving in you                                                                                                                             t to my monthly sa
                                                                                                  er the banks will                                   r cars.                   Jimmy Peters is the pre                                                                                              les.”
                                                                   still buy. Imagine the sales                                                                                                         sident of Big Time
                                                                                                  numbers from                                                                 Promotions. He can be                                                                                   Robert S. Cook
                                                                                                                                                                                                        co
                                                                   a showroom full of emoti                            With any campaign, it is
                                                                                                                                                important to stand             866.850.6926, or by e-m ntacted at                                                              General Sales Mana
                                                                                               onally motivated        out and use emotion to mo                                                         ail at                                                                                   ger
                                                                   customers who can buy a                                                       tivate your                   jpeters@autosuccesson                                                                               Brewbaker Motors
                                                                                                car. What are                                                                                            line.com.
                                                                                                                                                                                                                                                                                    Montgomery, AL




                                                                                                                                                                                                                                                                                                                    13
12
STS
                                                DalePollak
sales&trainingsolution




                                                CHALLENGING THE CORE
                                                INVENTORY CONCEPT
                                                 OK, I’m going to       However, the truth is that the used car          do what my friend has done at his Infiniti
                                                 go out on a limb       market place, by definition, is anything          store? I think that the answer lies in the fact
                         to challenge a conventional dealership         but steady and, in fact, is extremely            that we are all more comfortable operating
                         notion. I’m really troubled by the concept     unpredictable. There are hundreds of             in a zone of comfort and familiarity. Think
                         of “core inventory.” I’m not saying that       factors that are at play in our environment      about how hard it would be for someone
                         each store doesn’t have a certain natural      that influence consumer’s purchase                very knowledgeable and familiar with the
                         traffic profile based on its brand, location     preferences and they are anything but            Infiniti to say, “there might be something
                         and community, but I am suggesting that        steady and predictable. Fluctuating gas          better out there, and I’m gonna give it
                         the notion of a “core inventory,” while        prices, interest rates and weather patterns      a try.” It’s a lot easier for us to go with
                         appealing and comforting, is fool’s gold.      are just a few causes that constantly            the inventory that we know, rather than
                                                                        befuddle those that attempt to stock             venturing out and taking the risk associated
                         The idea of “core inventory” suggests          inventory today, based on what has worked        with buying something different.
                         that there is a fixed profile of used vehicle    in the past.
                         inventory that produces optimal results.                                                        The good news for the industry is that there
                         In other words, if you stock certain types     For example, every day, we are all watching      is now technology that can analyze any
                         of vehicles, you’ll be well on your way to     gas prices skyrocket. There couldn’t be          market and tell a manager, at the level of
                         success. This notion makes the assumption      any environment that more dramatically           year, make, model and specific equipment,
                         that the automobile market place is steady     highlights the fact that the theory of dealers   which are the hottest vehicles at the
                         and predictable. Without the assumption        stocking based on their “core inventory”         moment, based on volume and/or gross.
                         of steadiness and predictability, one could    is just plain wrong. If any dealer today         This takes much of the risk and uncertainty
                         not legitimately suggest that dealers should   stocked their lot based on their past core       out of the equation. So if you haven’t seen
                         stick to a defined core of inventory mix.       inventory, they’d be purchasing gas              this, you need to. In my opinion, it’s the
                                                                        guzzlers and, quite possibly, avoiding the       only way to stay in tune with the market.
                                                                        purchase of today’s hot selling, gas-sipping
                                                                        vehicles. It seems insane to keep doing the      As uncomfortable as it is, we need to let
                                                                        same things and expect different results.        go of our security blanket or, in the words
                                                                                                                         of Thomas Friedman, our “olive tree”
                                                                        Today, I spoke to a highly successful used       and accept the fact that, in the words of
                                                                        car director of a large multi-franchise          Bob Dylan, “times, they are a’ changing.”
                                                                        organization. His comments made                  We must embrace uncertainty and accept
                                                                        me realize that the absurdity of “core           the fact that what worked last year, last
                                                                        inventory” goes well beyond the issue of         quarter or last month may not work today.
                                                                        gas prices. He said that, as an experiment,      This means that we must keep our finger
                                                                        they stopped stocking used Infiniti’s at          on the pulse of the market place and take
                                                                        their Infiniti dealership. They experimented      our cues from it in “real time” rather than
                                                                        with high volume, off-brand vehicles, such       from history. Our present inventory must
                                                                        as Impalas and Malibus. I asked him if           always reflect the market at the moment.
                                                                        he was sure he knew what he was doing,           If gas prices are way up, we have to dump
                                                                        and he told me that they were selling like       gas guzzlers in favor of compacts. If
                                                                        “hotcakes.”                                      we’re experiencing unusual amounts of
                                                                                                                         snowfall, we must quickly respond with
                                                                          He said that we all get hung up on the         more 4-wheel drives. If silver cars lose
                                                                          notion that we should stock according          their appeal, we must quickly respond
                                                                           to our past sales and/or in accordance        by changing our preference of color
                                                                        with our franchise brand. Yes, it may be         choices. We simply can no longer afford
                                                                        true, he told me, that there is some natural     the convenient comforting thought that
                                                                        traffic for these vehicles, but that does not     what worked in the past will work today or
                                                                        necessarily mean that they are the most          tomorrow. The only things that are constant
                                                                        demanded products in the market. Properly        and predictable are death, taxes and
                                                                        used, the Internet allows dealers to be          change. Let’s wake up, smell the coffee and
                                                                        successful with products that are hot, but       realize that the notion of “core” is rotten.
                                                                        not necessarily their brand or part of their
                                                                        past core. “Remember,” he said, “no used
                                                                        car manager ever got fired for selling the        Dale Pollak is the chairman and founder
                                                                        right mix of used makes and models.”             of vAuto. He can be contacted at
                                                                                                                         866.867.9620, or by e-mail at
 14




                                                                        So why is it hard for many dealerships to        dpollak@autosuccessonline.com.

  www.autosuccessonline.com
STS
                                                  GarySimmons
sales&trainingsolution


                                                  ADOPT AN OPEN SERVICE
                                                  DRIVEWAY AND GENERATE
                                                  $200,000 MORE THIS YEAR
                                                  In today’s tight           entire day, including Friday. Currently many      “Your service
                                                  market, most               service advisers stop scheduling same-day
                         dealerships are losing money on both new            appointments at 10 or 11 a.m. because they        and parts
                         and used vehicles. Staying out of the red           get overwhelmed with numerous open                departments
                         is possible, though: Look to your service           repair orders. An overwhelmed adviser will        are your
                         and parts departments. These departments            schedule appointments for 24 to 48 hours
                         should be your revenue-generating stars, but        after the customer calls, causing your no-        revenue-
                         if they’re not, you’re not alone. The service       show percentage to jump to more than 30           generating
                         department, primed to run at maximum                percent as customers turn to another shop.
                         efficiency, often is stymied by overwhelmed          No only are you losing revenue, you’re
                                                                                                                               stars, as long
                         service advisors who prematurely shut off           alienating customers. The hardest part to         as they are
                         the daily flow of customers, “closing” the           swallow is that many service technicians          structured and
                         department and costing you as much as               will be finished with their work before the
                         $200,000 in revenue each year. The good             day is over, meaning customers were turned        run by an
                         news, however, is that you can reap those           away only because the number of open              ‘open’
                         profits by cultivating an “open” service             repairs orders seemed too daunting. Tell your
                         driveway, increasing efficiency, profitability        advisers to keep the driveway open for just
                                                                                                                               policy.”
                         and customer satisfaction, without costing          four additional repair orders per day, and you
                         undue time and money.                               can collect that missing $200,000 per year.       service Web
                                                                                                                               page is also “open.”
                         Open Your Service Driveway                          Accommodate Your Customers,                       If a customer goes to your appointment
                         for the Entire Day                                  Not Your Dealership                               page and is denied the appointment time slot
                         Your first step in generating more service           If you’re thinking, “If I tell a customer to      they want, they’ll simply jump to the site
                         revenue is to open your driveway for the            bring in their vehicle but we cannot repair       of another shop. Make it clear that you are
                                                                                                     it today, they will be    there to accommodate your customers by
                                                                                                     just as disgruntled as    ensuring that your online appointment menu
                                             FOR SALE                                                if I made them wait       tells customers to call if they cannot get
                                                                                                     for an appointment.”      their requested time slot. Again, it is about
                                          Revenue Generator                                          Not necessarily. Your     proving to the customer that they come first.
                                                                                                     customers need to
                                                                        Approximate                                            Train Your Service Advisors to
                                                                                                     know that their needs
                                                                     Investment: $2,000              come first. By taking      be a Part of the Team
                                                                                                     immediate action          The changes above will obviously affect
                                                                                                     and telling them to       your service advisers, so put in the time
                                                                                                     come in right away,       upfront to get them on-board with your
                                                                                                     you are proving that.     new strategy. Make sure they know they
                                                                                                     The key is clear          are an integral part of building a successful
                                                                                                     communication: tell       dealership. Outline for them the structure of
                                                                                                     them you want to          your dealership, where the greatest amount
                              Approximate                                                            determine the problem     of revenue is coming from, your dealership
                                                                                                     immediately, that you     goals, and how they can make these goals
                             Monthly Return:                                                                                   a reality. Invested employees are your
                               $50,000 !!                                                            may not be able to
                                                                                                     repair the problem that   best weapon against a down market and
                                                                     ■ Integrated Email                                        attrition. Also consider that you may need
                             Powerful, proven revenue generator.                                     same day, but once
                             Excellent service history. Used by      ■ Email Collection                                        to hire additional service advisers to reach
                                                                                                     you know the nature
                             dealerships across the U.S. Perfect     ■ Direct Mail                                             maximum department efficiency.
                                                                                                     of the problem you can
                             for sales, customer satisfaction and    ■ Voice Messaging
                             bottom line. Runs like a dream.                                         give them an excellent    Your service and parts departments are your
                                                                     ■ eNewsletters
                                                                                                     estimate of the time      revenue-generating stars, as long as they
                                                                     ■ Online Appointment
                                                                                                     and labor involved.       are structured and run by an “open” policy.
                                    Call Now                           Scheduling
                                 866.628.6245                                                       The principle of           When your department is open, you’ll
                               www.autorevenue.com                                                                             gain increased efficiency and customer
                                                                                                    accommodating
                                                                                                    your customers first        satisfaction. Most importantly, your revenue
                                                                                                    also applies to your       may just increase to more than $200,000.
                                                                                                    service department         Gary Simmons is the founder of
                           We do all the work... SM                                                 Web page. With so          Management Consulting Services, Inc.
                           You make all the money!                                                  many consumers             He can be contacted at
                                                                                                                                                                               15




                                                                                                    turning to the Internet    866.491.3806, or by e-mail at
                                                                                                    first, ensure that your     gsimmons@autosuccessonline.com.

                                                                                           the #1 sales-improvement magazine for the automotive professional
Call Today for your Complete
     Registration Packet
        888.490.0909
 www.2008sfconvention.com
     Preliminary Agenda
  2008 Special Finance Convention August 17th – 19th, 2008
Sunday – Day One                   Monday – Day Two                   Tuesday – Day Three
Registration                       Breakfast in Exhibit Hall          Breakfast in Exhibit Hall
1:00 pm – 8:30 pm                  7:00 am – 8:45 am                  7:00 am – 8:45 am
Exhibit Hall Booth Setup           General Session                    Educational Sessions
1:30 pm – 5:30 pm                  9:00 am – 10:15 am                 9:00 am – 12:00 noon
Reception in Exhibit Hall          Beverage Break                     Beverage Break
6:00 pm – 9:00 pm                  10:15 am – 10:30 am                10:15 am – 10:30 am
                                   Legal Jeopardy                     Lunch in Exhibit Hall
                                   10:30 am – 12:00 noon               12:00 noon – 1:30 pm
                                   Lunch in Exhibit Hall              Roundtable Discussions
                                   12:00 noon – 1:30 pm               1:45 pm – 3:00 pm
                                   Educational Sessions               Conference Adjourns
                                   1:45 pm – 5:00 pm                  3:00 pm
                                   Beverage Break
                                   3:00 pm – 3:15 pm
                                   Reception in Exhibit Hall
                                   5:00 pm – 6:30 pm


      Moderators and Speakers

    Emily Beck         Kevin Day      Greg Goebel        Tom Herald      Tom Hudson         Kris Wright
MS
                                                   ChuckPatton & TriciaPatton
marketingsolution




                                                   SERVICE: PROFIT CENTER OR
                                                   ADVERTISING INVESTMENT?
                                                     Is your           percent of total dealership operating         known as “your brand.” Remember,
                                                     service           profits, and that number is rising.            if the customer is making a purchase
                    department a profit center or advertising                                                         decision, they will start by listening to
                    investment? The answer is “both.” Chances       5. If you consider any of the forecasting        someone they like and trust.
                    are, the manufacturer you represent was            about the economy and how that will
                    down for the month of June. These market           effect your retail department, it makes    6. Be careful about which advertising
                    conditions are unprecedented for many              sense to concentrate your advertising         experts you listen to. Service
                    of us, and we are trying to re-adjust our          investment in the area that makes             marketing doesn’t work like the one-
                    strategies in order to adapt and keep our          you the most money — the service              event wonders that may have been
                    numbers up. One trend remains, however:            department.                                   proposed to you.
                    We all depend on our service department
                    to level off the front-end sales loss during    6. Your service department is definitely a     7. How many customers bought from
                    a down sales cycle. The good news is               profit center.                                 you but are not servicing? If you use
                    service can still be there for you. Challenge                                                    direct mail and they are dialing into
                    yourself to look at things in a new light and   Now, here are a few ideas HOW to expand          your database, they should be able to
                    start assessing the importance of reinvesting   your service department vision from just a       tell you who you are retaining and who
                    in your service department just as you          profit center to an advertising investment:       you are not.
                    would your personal financial profile.             1. Take control of your service
                                                                        advertising and make sure you are         8. Monitor everything, such as the
                    Most dealers set a goal for their service           marketing YOUR dealership, not               number of loyal customers, number
                    department to achieve the highest                   the manufacturer. Service marketing          of customers who service between
                    absorption rate possible. If you have the           is typically a communication that            0-24 months, and number of defecting
                    right perspective, your service department          occurs four or more times a year, and        customers. Send a message according
                    can achieve this and double as a prospect           some programs you might be using             to known behavior, not just the year
                    base to build strong sales. This is because         spend more time talking about what           and model.
                    the larger your customer base is in service,        the manufacturer offers and less about
                    the stronger your prospect base is to sales.        what your dealership offers.             Depending on what statistic you follow, a
                    So, is your service department a profit                                                       loyal client to the service department will
                    center or is it actually an advertising          2. Don’t cut the budget. Most               give you a chance to sell them their next
                    investment? Increased loyalty in your              dealerships invest less than 10 percent   vehicle about 75 to 85 percent of the time.
                    service department will eventually lead to         of their total advertising budget in      This means if you have a loyal customer
                    a larger customer base to mine for sales.          the very department that produces 77      base of 3,000 customers, you will have
                    But, first you must set it as a priority, and       percent of the profit. That might be       2,550 ups or 850 per year over the next
                    second you must mine it for potential. So,         too low. Typically the only soft sale,    three years.
                    if you are thinking of cutting back on your        customer relations branding you will
                    service advertising, think again.                  do is in service.                         So, is your service department a profit
                                                                                                                 center or an investment in advertising?
                    Here is a clear argument for making your         3. The key customers for prospecting        This example shows that there are at
                    service department an investment — go              are those who have serviced their         least 70 quality ups per month from
                    through the most current financial numbers          vehicle within the past 12 months         your dealership customer base of 3,000
                    and trends at NADA.org and read between            and have a three- to four-year-old        customers, and your closing ratios should
                    the lines:                                         vehicle. Don’t be surprised if that       be high.
                     1. The following numbers were down                number stretches to five or six years,
                        two years ago: total dealership sales,         given the down economy.                   We are always looking for a magic pill or
                        net profit before taxes and new vehicle                                                   the next new idea for advertising that will
                        sales.                                       4. Look to make your less loyal clients     sell more cars. However, the largest profit
                                                                       more loyal and build your primary         center is under our nose and is easy to
                    2. The largest increases in income came            purchase base. Try marketing to           market to. Expenses will become more of
                        from the used car department and the           service customers who have not been       an issue for 2008 and into 2009. Service
                        service department.                            to your dealership in 12 to 36 months     is looking to be a pretty good investment
                                                                       in a completely different way than        within your portfolio!
                    3. The average dealership achieves                 loyal clients. Get aggressive about
                        around $31 million in sales. Just under        your offers and approach the marketing
                        $4 million of that comes from service          conversation differently.
                        department.                                                                              Chuck and Tricia Patton are the founders
                                                                     5. Sell yourself. Keep a consistent         of Traffic Builders Inc. They can be
                    4. In 2006, the service and parts                  message of quality and talk about         contacted at 866.859.8520, or by e-mail
 18




                        department profits accounted for 77             what you have to offer, or, what is       at patton@autosuccessonline.com.

  www.autosuccessonline.com
The Best Staffed Events Start
                              With The Best Teams.




More Training. More Professionalism. More Gross.
More Energy.
That’s our specialty.

Frustrated by continual poor results from your advertising?
Worn out from the lack of energy & enthusiasm at your store?
Worried about your store’s future profitability?
Need a strategy to increase revenue in a tough market?

Since 1993, thousands of dealerships have relied on
G&A Marketing to deliver winning solutions to these                World Class Staffed Promotions and
                                                               Direct Marketing for the Automotive Industry
problems and more.
                                                                   1-800-688-1370 • info@gamarketing.com
If you’re serious about seeing what the best car guys
in the industry can do for your store, call us.                 www.gamarketing.com

Contact Matt Baker anytime: 1-800-688-1370
mbaker@gamarketing.com
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AutoSuccess Jul08

  • 1. Visit us online at www.AutoSuccessOnline.com July 2008
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  • 6. July 2008 HOW TO MULTIPLY TIME 8 TomHopkins Colossians 3:15 Let the peace of Christ rule in your hearts, since as members of one body you were called to peace. PLEASE STEP OUT OF THE LINE 10 D.J.Harrington address: 3834 Taylorsville Rd. WHAT TO DO WITH YOUR BEST SALESPERSON 11 JohnBrentlinger Building A, Ste. 1B Louisville Kentucky 40220 GET TANKED The #1 Direct Mail Campaign in the Automotive Industry 12 JimmyPeters phone / fax: 877.818.6620 / 502.588.3170 CHALLENGING THE CORE INVENTORY CONCEPT 14 DalePollak web: AutoSuccessOnline.com 15 ADOPT AN OPEN SERVICE DRIVEWAY AND GarySimmons AutoSuccessPodcast.com GENERATE $200,000 MORE THIS YEAR team: 18 SERVICE: PROFIT CENTER OR ChuckPatton Susan Givens ADVERTISING INVESTMENT? Publisher & TriciaPatton sgivens1@autosuccessonline.com TOUGH TIMES NEVER LAST - TOUGH PEOPLE DO 20 PaulSnider Thomas Williams VP & Creative Director FIGHTING MURPHY’S LAW 21 SteveBrazill design@autosuccessonline.com Dave Davis THE FORMULA FOR WINNING - FOUR FAIL SAFE STEPS 22 PaulD.Cummings Editor and Creative Strategist ddavis@autosuccessonline.com SEE SPOT RUN - SEEN SPOT LATELY? KEEP READING 26 MichaelYork Brian Ankney Sales-Improvement Strategist super6@autosuccessonline.com ONE TOOL = THREE SIMPLE STEPS TO GROW YOUR BUSINESS 28 LauraNoonan Scott Schaeffer Sales-Improvement Strategist WHAT’S IN A TITLE 29 MarcSmith sschaeffer@autosuccessonline.com general information: PREPARATION TIME IS NEVER LOST TIME 32 JoeCala info@autosuccessonline.com eNewsletter: ENEWSLETTERS Building a Stronger Relationship With Your Customers 34 DaymondDecker enews@autosuccessonline.com AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., ONLINE MEASUREMENT 36 Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. DennisGalbraith Direct all subscription and customer service inquiries to 877.818.6620 or What Your Lead Management System Won’t Tell You info@autosuccessonline.com. Subscription rate is $69 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible INTERNET SALES 20 GROUP VII 38 for their return). All submitted editorials and graphics are subject to editing SeanV.Bradley for grammar, content and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means TRAINING, NEGATIVITY AND ADVICE 40 FranTaylor reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other magazine to which this magazine may be linked 41 from time to time. Always confer with legal counsel before implementing EASIER ACCESS TO SERVICE CONTRACT MikeHoffey changes in procedures.© All contents copyrighted by AutoSuccess INFORMATION Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent 42 from AutoSuccess. AutoSuccess may occasionally make readers’ names THIRD PARTY LEADS AND BDC BrianHall available to other companies whose products and/or services may be of Now More Than Ever interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3834 Taylorsville Rd., Building A, Ste. 1B 12 Louisville, KY 40220. 20 38 helping to support...
  • 7.
  • 8. STS TomHopkins sales&trainingsolution HOW TO MULTIPLY TIME Time is as precious workday world. I know it can be hard to Successful people in the automobile industry a commodity force yourself to do this, but believe me, always jump on the most important thing as money. I’ve written many articles the benefits are incredible. first. What is the most important thing that specifically about how to make sales you should do right now? Learning to answer (translated “making money”). Now, let’s When you are involved with opportunity that question quickly then acting on it will explore some ways you can get more sales time, you need to be tough about it. It’s increase your productivity ten-fold. If you productivity out of the time you have to amazing how much of our working life can have a weekly sales goal, start working on it invest in your automotive sales career. be eaten up by trivial interruptions unless as early in the day as your potential clients you make a conscious effort not to let that are available. Don’t wait until you take care Everyone knows you can make twice the happen. Successful people are tough about of other things before you start selling. The income by working twice the number the types of interruptions they allow during weight of that goal will crush you by day’s of hours, putting forth twice the amount productive business time. They’re always end. Start doing this every morning, keep on of effort. The secret to true success is in on the lookout for busy work and finding doing it, and you’ll soon discover that you’re making the time you currently invest in ways to eliminate it. not worrying anymore. You’re enjoying the our your business twice as productive. work, you’re feeling good about yourself, est in y and you know you’re winning. the se To begin with, you must understand that ntly inv there are two entirely different kinds of If a challenge arises that you don’t know cr time. The first is opportunity time, during what to do about, do your best to come et to t u curre which you achieve your goals such as up with an answer, but don’t dwell on it internalizing information on new vehicles, too long. If you’re not satisfied that what time yo rue su getting your hands, eyes and ears on those you’ve come up with is the best solution, new vehicles and providing follow up write down how you’d like to resolve it, service to existing clients. The second is even if what you write seems totally absurd. king the ccess replenishment time, during which you Then, set it aside and commit to returning rebuild your strength through exercise, to it later that day. Let your mind work is in ma recreation, relaxation and sleep. bus ine on other things for awhile. Then, when ss you come back to the challenge, you’ll twi ce If you can’t get the hang of switching from as pro likely have a fresh perspective on it and opportunity time to replenishment time, duc find a better solution. If it’s still not the tive you’ll soon face a period of burnout where . ideal solution, do your best in handling it you’re neither successful nor in sound today. The longer you let challenges lie physical condition. You’ll run out of fuel. unresolved, the more likely they are to grow Then your flame will go out, your power into something that will be very difficult will shut off and you’ll drop like a stone. to resolve. Just tell yourself, “I’m going to Busy work is usually pointless stuff that handle this to the best of my ability today People who appear to be highly productive you don’t mind doing because it’s easy, and will learn from this experience.” often suffer flameout. Many have lost and doing it makes a marvelous excuse several years as a result. Some have for not tackling the hard things you know Stay tough about your opportunity time. quenched their flames so thoroughly that you should do. The key is to figure out the Don’t fritter it away doing busy work or they never managed to get their engines best time of day each day for selling and to engaging in unnecessary activities. When it’s going again. They gave up on their dreams focus your efforts on sales activities during time to sell, sell! But when it’s time to kick of having a successful career. that time. Don’t do filing or clean your back and relax, do that with gusto as well. desk during sales time. Yes, it needs to be The dangerous part is that flameout sneaks done, but not during selling time. World-renowned master sales trainer Tom up on you. Don’t try to fly high when your Hopkins is the chairman of Tom Hopkins tanks are low. Touch down and refuel If you’re going to be a winner, you will International. He can be contacted at your spirits — spend a few days away in a always have time for the tough end of your 866.347.6148, or by e-mail at completely different atmosphere from your job because that’s what produces results. thopkins@autosuccessonline.com. 8 www.autosuccessonline.com
  • 9. IF YOU THINK YOU KNOW A BETTER WAY TO BRING IN CUSTOMERS, THEN YOU DON’T KNOW CHIT. CING… IN TRODU HEELER CHIT W IT IS THIS EASY! Some people say attracting customers to your service department isn’t easy. I say they don’t know Chit. I have discovered a patented way of actually scenting your dealership that causes customers to flock into your service departments. It also works for sales because we all know if we can get them to buy service then we can get them to buy a car. It truly is that easy and you don’t have to do anything but Spray and Pray. OUR PRODUCT IS GUARANTEED* * Guarantee includes shipping only. Long term effects may be questionable, may not work on all species of customers, or in every environment. May work worse in some parts of the country. VISIT WWW.CHITWHEELER.COM TO SEE A DEMONSTRATION OF THE JOIN OUR Chit Wheeler Customer Scent® “CHIT HITS THE PATENTED TECHNIQUE BY CHIT WHEELER FAN CLUB” AND GET A FREE BOTTLE OF THIS SOLUTION AS AN ADDED INCENTIVE FOR REGISTERING, Chit YOU WILL ALSO BE REGISTERED TO V Wheeler CHIT T Customer Scent® RECEIVE A $500.00 GIFT CERTIFICATE TO THE HUNTING STORE OF YOUR CHOICE. ALL FOR JUST VISITING WWW.CHITWHEELER.COM
  • 10. STS D.J.Harrington sales&trainingsolution PLEASE STEP OUT OF THE LINE Processionary procession found himself nose to tail with flower pot for seven days and seven nights caterpillars travel in the last caterpillar in the procession, forming and until they died from starvation and long and wavy lines, one creature behind a circle without an end or a beginning. exhaustion. There was an ample supply of the other. A French entomologist once led food close at hand and very visible, but it a group of these caterpillars onto a rim of Through sheer force of habit and, of course, was outside the range of the circle, so the a large flower pot so that the leader of the instinct, the ring of caterpillars circled the caterpillars continued along the beaten path. A lot of us often behave in a similar way. Habit patterns and our ways of thinking GET MORE PHONE CALLS - become deeply established and it seems easier and more comfortable to follow them rather than accept change — even when SELL MORE CARS! food to live by is right there. I know if someone shouts “FIRE,” it is automatic to blindly follow the crowd, and many thousands have needlessly died because of it. How many stop to ask, “Is Custom 800® numbers are PROVEN to: this really the best way out of here?” So many people “miss the boat” because it’s Get higher recall rates from your radio & TV ads easier and less demanding to follow without questioning the qualifications of the people Improve consumer response to your print ads just ahead of us and just maybe do some independent checking and thinking. A hard thing for most of us is to fully understand is that people in such a We have dozens of powerful Custom 800 Numbers for automotive large number can be so wrong (like the sales and service departments. Numbers like: caterpillars going around and around the edge of a flower pot with food and life just a short distance away). It’s sad, but 1-800-NEW-CARS® 1-800-NEW-RIDE most people are living that way. If we do 1-800-NEW-CREDIT 1-800-NEW-WHEELS a little checking, you will discover that throughout all recorded history, the majority 1-800-NEW-DEAL 1-800-NEXT-CAR of mankind has an unbroken record of being 1-800-NEW-LEASE 1-800-PRE-OWNED wrong about most things — especially the important things. ...and many more. ® Custom 800 is a registered trademark of 800response. | ® 1-800-NEW-CARS is a registered trademark of an affiliate of 800response. It’s difficult for people to come to the understanding that only a small group of Call people ever really understand about life, about living abundantly and successfully. Some people wait passively for success to 1-800-NEW-SALES come to them, like our caterpillars going around and around, following nose to tail today and get the thinking that other people must know how to live successfully. perfect number for Please remember, it’s a good idea to step out of the line every once in a while and look up your dealership! ahead to see if the line is going where you want it to go. If it’s not, step out of the line. D. J. Harrington is an author, journalist, seminar leader, international trainer, More Calls, More Sales, More Profits and marketing consultant. He can be 10 contacted at 866.855.5781, or by e-mail at djharrington@autosuccessonline.com. www.autosuccessonline.com
  • 11. MS JohnBrentlinger marketingsolution WHAT TO DO WITH YOUR BEST SALESPERSON There are three get it yourself. If you want perfect general criteria computer records every day, hire a bunch for “best” salesperson: They do their own of computer nerds who love computers work, they have constant high margins but couldn’t sell water in the Sahara. and they have high volume. Those are Leave your best salesperson alone. They the standards. We’re not talking about the don’t need you to silly-small-talk their favorite child who skates others, who is customers, they don’t need you to call their fed by the manager and who sacrifices customers, check their figures, desk their margin for volume (volume is vanity; profit deals and close their sales. That’s why they is sanity). Your best salesperson meets the are the best. Leave them alone. They will standards and encourages other salespeople sell more and earn more, and so will you. by his or her work ethic and example. 3. Increase their commissions. The What you do with your best salesperson salesperson who does the most should be determines the vitality of your dealership. paid the best. This one thing will raise All of the other salespeople are watching the standard for all the other salespeople. your best salesperson. If you treat your Anyone who complains about how much best salesperson poorly, the others will not the best salesperson makes should be aspire to greatness, and they will remain fired immediately. If other salespeople mediocre for as long as they work for you. complain, fire them. If the person who If you want mediocre salespeople, the writes the checks complains, fire them. If formula is simple: Hire anyone, micro- a manager complains that best salesperson manage everyone and train no one. makes too much money, fire them. The salesperson who does the work and makes What To Do with Your Best the money should be treated like a rock Salesperson star. If you can’t, don’t or won’t treat your 1. Do not make them team players. All best salesperson as your best salesperson, salespeople are not equal. Conventional you won’t have to worry about how to treat nonsense about everyone doing everything your best salesperson, because you won’t the same way leads to mediocre madness, have one. ie: “We have a system and you will learn it and follow it or else.” Oh goody, let’s all be 4. Do not make them managers. There mediocre together. Think about a baseball is no commission on management. All team. Every player has different strengths commissions come from selling a product and abilities. They are not the same, they at a profit. Don’t take your best earners, are not equal, they are paid differently and your best workers, your best examples some are better than others. Imagine a team to the rest of the salespeople and make where everyone hit like the pitcher, squatted them work longer hours for less pay, less like the catcher and scratched like the satisfaction and less incentive. Great manager. That is your mediocre sales force salespeople are great because they love to when you try to make them all do all of the produce, to sell and to meet the goals they same things in the same way. That has not set for themselves. Don’t ruin your sales worked, is not working and will not work. force by showing them that if they be the Be brave enough, be smart enough, be best they can be, they will be rewarded by secure enough and control yourself enough being made a manager. Let them sell, let to let your best salesperson think differently, them grow, let them earn. work differently, sell differently and while doing differently, produce great profit for Let your best salesperson be as great themselves and the dealership. Your greatest as they want to be. Don’t make them test as a manager is this: Do you have the team players, don’t micro-manage them, ability to lead great salespeople? pay them more and just let them sell. Treat them like rock stars, and the entire 2. Leave them alone. Don’t micro-manage dealership will benefit. them. Don’t make them follow all the silly rules that the six-car-a-month people John Brentlinger is a sales and follow. Silly rules make mediocre teams management trainer, executive coach who can follow silly rules but can’t sell and author. He can be contacted 11 anything. If you want the name, address at 866.859.6504, or by e-mail at and phone number of every prospect, jbrentlinger@autosuccessonline.com. the #1 sales-improvement magazine for the automotive professional
  • 12. FS featuresolution GET TANKED The #1 Direct Mail Cam paign in the Automotive Indust ry JimmyPeters The current economic clim With gas prices over ate, with banks $4 a gallon regardles Why do gas mailers work? customers. Using a gas ma my marketing efforts s of what I was doing tightening stipulations for The gas mailer iler will get were losing their cat ch and my ROI was loans and mail campaign hits a nerve. the downturn so I tur ned on gas prices soaring, has ma Everyone in your customers emotiona weeks ago to see if the to a longtime marketing partner a few de effective lly motivated and y could help turn thin marketing more importan the United States is feelin create a strong call to act have they! Jimmy sug gs around and boy t than ever. Every g the pinch from ion. A great way gested I try out their marketing dollar must hav high gas prices in one wa to stand out is with a follow that offers my custom new Get Tanked mailer e maximum y or another. -up postcard ers a $50 gas vouche impact. Banks have becom Everyone opens a gas ma to remind them that they one of our vehicles (wi r just for test driving e very tight iler simply need to visit to have been seeing clo th no extra expense because it offers some rel get their $50 in gas. Use to us) and so far I lending to those with the ief at a time when se to a 4% response 480 to 559 credit a message such reps an opportunity which gives my sales scores. These deals are not gas has hit $4 or more per as, “This is your last notice to do their job and sel getting bought gallon. Who to stop by and pumped and our ma l product. My staff is wouldn’t open it? rketing ROI has skyroc without $2,000 to $3,000 take a test drive to receiv keted with us seeing down. The hedge e your $50 gas deals make as much as 5 or 6 grand a cop fees of 15 to 20 percent ma certificate.” This will inv y! ke these deals oke the fear of very difficult — if not im The motivation is the me loss and push many potent possible — to ssage. Fifty ial customers Clint Rainer structure. Dealerships are dollars in free gas motivate over the edge and drive the General Sales Manag looking for ways s people. m to your er to increase sales from the Imagine if you put a bunch dealership. Bill Heard Chevrolet ir marketing of big dollars and drive in more billboards up that said, “C Union City, GA high-score traffic ome Test Drive that can be more easily fi Any of Our New or Pre-O Compound the effect of you nanced. One great wned Vehicles r gas mailer “WOW!!! Get Tanked way to do this is to increa and We Will Give You $50 and last-chance postcard mailer has delivered se response rates Worth of Free with a voice significantly better-th great and target your desired cus Gas!” How many people broadcast. Use a voice ma an-ever GROSSES to success and tomer type. would respond to il broadcast My market is a tough one, but GET TANK our dealership. New ideas in direct mail, this message and be on you while your sale is going on in quality traffic that ED MAILER brings like gas mailer r lot to get that the possibilities? Well, the to remind them gets SOLD. I recom campaigns, are helping inn free $50 of fuel? Your lot chances are not to miss out. Use a sim mend it for your next ovative dealers would be a mad that, even with the marke ple pre-recorded direct sales event.” achieve up to a 5 to 10 per house. The message would t in its current phone message asking the cent response. motivate tons of condition and gas prices m to come to people. The problem with sky high, you your dealership and take the billboard is could very likely have a rec a test drive and Michael Mancano that you cannot target the ord month at pick up their $50 gas certifi General Manager individuals you your dealership — just lik cate and tells want to visit your dealershi e many other them of the specials you Honda City p. You simply dealerships have been abl have going on. cannot target the exact dem e to do by using There is no way for you to Chicago, IL ographic you gas mailer program campai lose with a want to have visit your dea gns. properly planned and imple The get tanked mailer lership with mented gas I did with Jimmy gave any form of mass media mailer campaign. response as well as gre me a tremendous advertising such With this mailer, you sho at gross per copy. I ran as a billboard, newspaper uld target people $4218 a copy , television or with a 580 to 679 credit sco and had a 2% show rati o. Thank You” radio. It is important to rem re who have The bottom line is you hav ember that you 70 to 99 percent of their aut e to make sure can generate tons of floor o loan paid that you get ups on your traffic to your off. These are the people lot who can buy, Barney Lopez dealership in any market whom the banks and that is why you need General Sales Manag with the right are willing to finance. Th to make sure Cloverleaf Chrysler Do er message and call to action ey have had their your lists are less than 24 dge Jeep . vehicles for awhile, and the hours old and y’re ready to go are targeted to the criteria Decatur, AL home in one of yours. Th you can sell. Now, think if you take thi ese motivated and When the market is hard, s highly effective able buyers are the ones wh we must be more call to action that solicits om you want aggressive to make sure we an emotional to visit your store. You wo get our share; “With the economy response and desire from n’t be struggling ask yourself if you are doi the way it is to be ho your target to hang these deals on Mo ng what you anything was going to work the same as nest I wasn’t sure if customer and condense it nday morning need to do, or are you jus I was wrong as Jim it did in days past bu into a form of or calling people to unwind t standing by? my Peters has prove t advertising such as direct deals you with the Get Tanke n to me once again mail. With direct can’t get done. You will jus d piece I did that I can always depend mail, you can specifically t have happy my advertising comp target your any to give a boos on desired customer, a custom customers driving in you t to my monthly sa er the banks will r cars. Jimmy Peters is the pre les.” still buy. Imagine the sales sident of Big Time numbers from Promotions. He can be Robert S. Cook co a showroom full of emoti With any campaign, it is important to stand 866.850.6926, or by e-m ntacted at General Sales Mana onally motivated out and use emotion to mo ail at ger customers who can buy a tivate your jpeters@autosuccesson Brewbaker Motors car. What are line.com. Montgomery, AL 13 12
  • 13. STS DalePollak sales&trainingsolution CHALLENGING THE CORE INVENTORY CONCEPT OK, I’m going to However, the truth is that the used car do what my friend has done at his Infiniti go out on a limb market place, by definition, is anything store? I think that the answer lies in the fact to challenge a conventional dealership but steady and, in fact, is extremely that we are all more comfortable operating notion. I’m really troubled by the concept unpredictable. There are hundreds of in a zone of comfort and familiarity. Think of “core inventory.” I’m not saying that factors that are at play in our environment about how hard it would be for someone each store doesn’t have a certain natural that influence consumer’s purchase very knowledgeable and familiar with the traffic profile based on its brand, location preferences and they are anything but Infiniti to say, “there might be something and community, but I am suggesting that steady and predictable. Fluctuating gas better out there, and I’m gonna give it the notion of a “core inventory,” while prices, interest rates and weather patterns a try.” It’s a lot easier for us to go with appealing and comforting, is fool’s gold. are just a few causes that constantly the inventory that we know, rather than befuddle those that attempt to stock venturing out and taking the risk associated The idea of “core inventory” suggests inventory today, based on what has worked with buying something different. that there is a fixed profile of used vehicle in the past. inventory that produces optimal results. The good news for the industry is that there In other words, if you stock certain types For example, every day, we are all watching is now technology that can analyze any of vehicles, you’ll be well on your way to gas prices skyrocket. There couldn’t be market and tell a manager, at the level of success. This notion makes the assumption any environment that more dramatically year, make, model and specific equipment, that the automobile market place is steady highlights the fact that the theory of dealers which are the hottest vehicles at the and predictable. Without the assumption stocking based on their “core inventory” moment, based on volume and/or gross. of steadiness and predictability, one could is just plain wrong. If any dealer today This takes much of the risk and uncertainty not legitimately suggest that dealers should stocked their lot based on their past core out of the equation. So if you haven’t seen stick to a defined core of inventory mix. inventory, they’d be purchasing gas this, you need to. In my opinion, it’s the guzzlers and, quite possibly, avoiding the only way to stay in tune with the market. purchase of today’s hot selling, gas-sipping vehicles. It seems insane to keep doing the As uncomfortable as it is, we need to let same things and expect different results. go of our security blanket or, in the words of Thomas Friedman, our “olive tree” Today, I spoke to a highly successful used and accept the fact that, in the words of car director of a large multi-franchise Bob Dylan, “times, they are a’ changing.” organization. His comments made We must embrace uncertainty and accept me realize that the absurdity of “core the fact that what worked last year, last inventory” goes well beyond the issue of quarter or last month may not work today. gas prices. He said that, as an experiment, This means that we must keep our finger they stopped stocking used Infiniti’s at on the pulse of the market place and take their Infiniti dealership. They experimented our cues from it in “real time” rather than with high volume, off-brand vehicles, such from history. Our present inventory must as Impalas and Malibus. I asked him if always reflect the market at the moment. he was sure he knew what he was doing, If gas prices are way up, we have to dump and he told me that they were selling like gas guzzlers in favor of compacts. If “hotcakes.” we’re experiencing unusual amounts of snowfall, we must quickly respond with He said that we all get hung up on the more 4-wheel drives. If silver cars lose notion that we should stock according their appeal, we must quickly respond to our past sales and/or in accordance by changing our preference of color with our franchise brand. Yes, it may be choices. We simply can no longer afford true, he told me, that there is some natural the convenient comforting thought that traffic for these vehicles, but that does not what worked in the past will work today or necessarily mean that they are the most tomorrow. The only things that are constant demanded products in the market. Properly and predictable are death, taxes and used, the Internet allows dealers to be change. Let’s wake up, smell the coffee and successful with products that are hot, but realize that the notion of “core” is rotten. not necessarily their brand or part of their past core. “Remember,” he said, “no used car manager ever got fired for selling the Dale Pollak is the chairman and founder right mix of used makes and models.” of vAuto. He can be contacted at 866.867.9620, or by e-mail at 14 So why is it hard for many dealerships to dpollak@autosuccessonline.com. www.autosuccessonline.com
  • 14. STS GarySimmons sales&trainingsolution ADOPT AN OPEN SERVICE DRIVEWAY AND GENERATE $200,000 MORE THIS YEAR In today’s tight entire day, including Friday. Currently many “Your service market, most service advisers stop scheduling same-day dealerships are losing money on both new appointments at 10 or 11 a.m. because they and parts and used vehicles. Staying out of the red get overwhelmed with numerous open departments is possible, though: Look to your service repair orders. An overwhelmed adviser will are your and parts departments. These departments schedule appointments for 24 to 48 hours should be your revenue-generating stars, but after the customer calls, causing your no- revenue- if they’re not, you’re not alone. The service show percentage to jump to more than 30 generating department, primed to run at maximum percent as customers turn to another shop. efficiency, often is stymied by overwhelmed No only are you losing revenue, you’re stars, as long service advisors who prematurely shut off alienating customers. The hardest part to as they are the daily flow of customers, “closing” the swallow is that many service technicians structured and department and costing you as much as will be finished with their work before the $200,000 in revenue each year. The good day is over, meaning customers were turned run by an news, however, is that you can reap those away only because the number of open ‘open’ profits by cultivating an “open” service repairs orders seemed too daunting. Tell your driveway, increasing efficiency, profitability advisers to keep the driveway open for just policy.” and customer satisfaction, without costing four additional repair orders per day, and you undue time and money. can collect that missing $200,000 per year. service Web page is also “open.” Open Your Service Driveway Accommodate Your Customers, If a customer goes to your appointment for the Entire Day Not Your Dealership page and is denied the appointment time slot Your first step in generating more service If you’re thinking, “If I tell a customer to they want, they’ll simply jump to the site revenue is to open your driveway for the bring in their vehicle but we cannot repair of another shop. Make it clear that you are it today, they will be there to accommodate your customers by just as disgruntled as ensuring that your online appointment menu FOR SALE if I made them wait tells customers to call if they cannot get for an appointment.” their requested time slot. Again, it is about Revenue Generator Not necessarily. Your proving to the customer that they come first. customers need to Approximate Train Your Service Advisors to know that their needs Investment: $2,000 come first. By taking be a Part of the Team immediate action The changes above will obviously affect and telling them to your service advisers, so put in the time come in right away, upfront to get them on-board with your you are proving that. new strategy. Make sure they know they The key is clear are an integral part of building a successful communication: tell dealership. Outline for them the structure of them you want to your dealership, where the greatest amount Approximate determine the problem of revenue is coming from, your dealership immediately, that you goals, and how they can make these goals Monthly Return: a reality. Invested employees are your $50,000 !! may not be able to repair the problem that best weapon against a down market and ■ Integrated Email attrition. Also consider that you may need Powerful, proven revenue generator. same day, but once Excellent service history. Used by ■ Email Collection to hire additional service advisers to reach you know the nature dealerships across the U.S. Perfect ■ Direct Mail maximum department efficiency. of the problem you can for sales, customer satisfaction and ■ Voice Messaging bottom line. Runs like a dream. give them an excellent Your service and parts departments are your ■ eNewsletters estimate of the time revenue-generating stars, as long as they ■ Online Appointment and labor involved. are structured and run by an “open” policy. Call Now Scheduling 866.628.6245 The principle of When your department is open, you’ll www.autorevenue.com gain increased efficiency and customer accommodating your customers first satisfaction. Most importantly, your revenue also applies to your may just increase to more than $200,000. service department Gary Simmons is the founder of We do all the work... SM Web page. With so Management Consulting Services, Inc. You make all the money! many consumers He can be contacted at 15 turning to the Internet 866.491.3806, or by e-mail at first, ensure that your gsimmons@autosuccessonline.com. the #1 sales-improvement magazine for the automotive professional
  • 15. Call Today for your Complete Registration Packet 888.490.0909 www.2008sfconvention.com Preliminary Agenda 2008 Special Finance Convention August 17th – 19th, 2008 Sunday – Day One Monday – Day Two Tuesday – Day Three Registration Breakfast in Exhibit Hall Breakfast in Exhibit Hall 1:00 pm – 8:30 pm 7:00 am – 8:45 am 7:00 am – 8:45 am Exhibit Hall Booth Setup General Session Educational Sessions 1:30 pm – 5:30 pm 9:00 am – 10:15 am 9:00 am – 12:00 noon Reception in Exhibit Hall Beverage Break Beverage Break 6:00 pm – 9:00 pm 10:15 am – 10:30 am 10:15 am – 10:30 am Legal Jeopardy Lunch in Exhibit Hall 10:30 am – 12:00 noon 12:00 noon – 1:30 pm Lunch in Exhibit Hall Roundtable Discussions 12:00 noon – 1:30 pm 1:45 pm – 3:00 pm Educational Sessions Conference Adjourns 1:45 pm – 5:00 pm 3:00 pm Beverage Break 3:00 pm – 3:15 pm Reception in Exhibit Hall 5:00 pm – 6:30 pm Moderators and Speakers Emily Beck Kevin Day Greg Goebel Tom Herald Tom Hudson Kris Wright
  • 16. MS ChuckPatton & TriciaPatton marketingsolution SERVICE: PROFIT CENTER OR ADVERTISING INVESTMENT? Is your percent of total dealership operating known as “your brand.” Remember, service profits, and that number is rising. if the customer is making a purchase department a profit center or advertising decision, they will start by listening to investment? The answer is “both.” Chances 5. If you consider any of the forecasting someone they like and trust. are, the manufacturer you represent was about the economy and how that will down for the month of June. These market effect your retail department, it makes 6. Be careful about which advertising conditions are unprecedented for many sense to concentrate your advertising experts you listen to. Service of us, and we are trying to re-adjust our investment in the area that makes marketing doesn’t work like the one- strategies in order to adapt and keep our you the most money — the service event wonders that may have been numbers up. One trend remains, however: department. proposed to you. We all depend on our service department to level off the front-end sales loss during 6. Your service department is definitely a 7. How many customers bought from a down sales cycle. The good news is profit center. you but are not servicing? If you use service can still be there for you. Challenge direct mail and they are dialing into yourself to look at things in a new light and Now, here are a few ideas HOW to expand your database, they should be able to start assessing the importance of reinvesting your service department vision from just a tell you who you are retaining and who in your service department just as you profit center to an advertising investment: you are not. would your personal financial profile. 1. Take control of your service advertising and make sure you are 8. Monitor everything, such as the Most dealers set a goal for their service marketing YOUR dealership, not number of loyal customers, number department to achieve the highest the manufacturer. Service marketing of customers who service between absorption rate possible. If you have the is typically a communication that 0-24 months, and number of defecting right perspective, your service department occurs four or more times a year, and customers. Send a message according can achieve this and double as a prospect some programs you might be using to known behavior, not just the year base to build strong sales. This is because spend more time talking about what and model. the larger your customer base is in service, the manufacturer offers and less about the stronger your prospect base is to sales. what your dealership offers. Depending on what statistic you follow, a So, is your service department a profit loyal client to the service department will center or is it actually an advertising 2. Don’t cut the budget. Most give you a chance to sell them their next investment? Increased loyalty in your dealerships invest less than 10 percent vehicle about 75 to 85 percent of the time. service department will eventually lead to of their total advertising budget in This means if you have a loyal customer a larger customer base to mine for sales. the very department that produces 77 base of 3,000 customers, you will have But, first you must set it as a priority, and percent of the profit. That might be 2,550 ups or 850 per year over the next second you must mine it for potential. So, too low. Typically the only soft sale, three years. if you are thinking of cutting back on your customer relations branding you will service advertising, think again. do is in service. So, is your service department a profit center or an investment in advertising? Here is a clear argument for making your 3. The key customers for prospecting This example shows that there are at service department an investment — go are those who have serviced their least 70 quality ups per month from through the most current financial numbers vehicle within the past 12 months your dealership customer base of 3,000 and trends at NADA.org and read between and have a three- to four-year-old customers, and your closing ratios should the lines: vehicle. Don’t be surprised if that be high. 1. The following numbers were down number stretches to five or six years, two years ago: total dealership sales, given the down economy. We are always looking for a magic pill or net profit before taxes and new vehicle the next new idea for advertising that will sales. 4. Look to make your less loyal clients sell more cars. However, the largest profit more loyal and build your primary center is under our nose and is easy to 2. The largest increases in income came purchase base. Try marketing to market to. Expenses will become more of from the used car department and the service customers who have not been an issue for 2008 and into 2009. Service service department. to your dealership in 12 to 36 months is looking to be a pretty good investment in a completely different way than within your portfolio! 3. The average dealership achieves loyal clients. Get aggressive about around $31 million in sales. Just under your offers and approach the marketing $4 million of that comes from service conversation differently. department. Chuck and Tricia Patton are the founders 5. Sell yourself. Keep a consistent of Traffic Builders Inc. They can be 4. In 2006, the service and parts message of quality and talk about contacted at 866.859.8520, or by e-mail 18 department profits accounted for 77 what you have to offer, or, what is at patton@autosuccessonline.com. www.autosuccessonline.com
  • 17. The Best Staffed Events Start With The Best Teams. More Training. More Professionalism. More Gross. More Energy. That’s our specialty. Frustrated by continual poor results from your advertising? Worn out from the lack of energy & enthusiasm at your store? Worried about your store’s future profitability? Need a strategy to increase revenue in a tough market? Since 1993, thousands of dealerships have relied on G&A Marketing to deliver winning solutions to these World Class Staffed Promotions and Direct Marketing for the Automotive Industry problems and more. 1-800-688-1370 • info@gamarketing.com If you’re serious about seeing what the best car guys in the industry can do for your store, call us. www.gamarketing.com Contact Matt Baker anytime: 1-800-688-1370 mbaker@gamarketing.com