AutoSuccess Oct03


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

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AutoSuccess Oct03

  1. 1. “A key element to this slice cure is...” pg.9 .biz October 2003 E NSURETY G R O U P, I N C .Customer Retention: Expense Control:A Profit Opportunity Employee Efficiency Make Your Dealership Work for You How to Seal the Deal in Seven Seconds How to Overcome Any Objection in Six Easy Steps
  2. 2. manager I N S I D E driventeam operation uccessrevenue automobil 4 Transition From the Demo to the Desk solutions Steve Hiatt 6 Gaining Visibility Brian Tracy 7 profitprofessional Developing an Effective Sales Training Program Terry L. Isaac 8 Never Slice Again Brian Manzella10 Brand Yourself David Thomas sales11 Get More Bang for Your CRM Buck Brian Ankney12 Philosophy of Success Mark Tewart13 Implement Your Own Menu Presentation Frank Martin14 Leadership vs. Management Joe Verde16 Customer Retention: A Profit Opportunity Kevin Smith18 Sales From the Internet: How to Limit Spam Dennis McDonough19 Expense Control: Employee Efficiency Timothy Gilbert20 Make Your Dealership Work for You Mark Ludwig22 Achieve Successful Transitions Tony Ray Munson23 Making Manufacturer Certified Used Cars Work for You Don Elliott24 How to Overcome Any Objection in Six Easy Steps George Jackson26 How to Seal the Deal in Seven Seconds Lydia Ramsey27 You Get What You Ask For Robert Westall28 Effective Sales Meetings Fran Taylor A cure won’t just save children. Mary Tyler Moore It will save childhoods. International Chairman These kids live with 4-6 insulin injections daily. Plus, they face the threat of blindness, heart attack, kidney failure and amputation. Their only hope is research. The Juvenile Diabetes Research Foundation is closer than ever to finding a cure. Help us help them. Call 1.800.533.CURE or visit dedicated to finding a cure Psalms 37:3-5 Patrick Luck, Editor & Publisher inventory Success Driven Solutions • Trust in the Lord, and do good; so Susan Goodman, VP of Operations you will dwell in the land, and enjoy • security. Lindsay Porter, Copy Editor Take delight in the Lord, and he will 756 South 1st Street, Suite 202 • give you the desires of your heart. Louisville, Kentucky 40202 Courtney Hill, Advertising Services • courtney@autosuccess.bizCommit your way to the Lord; trust in Toll Free: 877.818.6620 Sara Zozula, Advertising Services him, and he will act. • Facsimile: 502.588.3170 In God We Trust Web: Thomas Williams, Creative Director dealer • thomas@autosuccess.bizAutoSuccess Magazine is published monthly at 756 South First Street, Suite 202, Louisville, Kentucky, 40202; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 Subscription rate is $75 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorialsand graphics are subject to editing for grammar, content, and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; viewsexpressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccessmay occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA.Postmaster: Send address changes to AutoSuccess Magazine, 756 South First Street, Suite 202, Louisville, Kentucky 40202.
  3. 3. sales and training solution SteveSteve Hiatt By Hiatt Transition From the Demo to the Desk Everyone focuses on The rabbit’s foot: “Sue, could you pull the is much more comfortable, so get out of the the steps to the sale. keys from the ignition there?” (She will pull car, and walk inside, they will follow. You should never them and start to hand them toward you.) skip steps, it costs “No Sue, those are for you, in fact, put them One other way to keep the customer you money. Nearly in your purse or your pocket right away, comfortable and impressed with you as a everyone has heard treat them like a lucky rabbits foot, and just professional is to have everything ready toabout the dangers of skipping steps in all rub ‘em every once in a while for good luck help with their purchase. Riffling throughour car guy lingo, “A solo demo equals no while we are wrapping this up.” drawers, looking for pens and a write-updough.” and “Shortcuts equal throat cuts.” sheet while yelling, “Hey Bill, you got anySince every step is important, why is the This is beautiful; your customer just took credit apps?” doesn’t generally illicit highskill of how to get your customers from the even more mental ownership. You aren’t levels of trust.demo to the desk skipped over so often? getting those keys back now, which is just what you want. Plus, you have now created Keep a plain manila folder on top of yourThe transition from the demo to the desk an emotional anchor for later when you are desk with your write-up/four square, creditis where, all too often, a deal is made or closing at the desk. I can’t tell you how application and trade appraisal sheet rightlost. When you think about it, isn’t it really many times I have left the desk, walked two there. Also have a holder for pens right onthe customer’s last chance to back out and steps, spun around and asked my customer top of your desk, so you aren’t scroungingstill save face? Once you get the customer if they still had the keys. Once they say yes, for a pen. Move the folder over, open itto paper the levels of commitment in I say “Well start rubbing them before I go up, and ask, “What is your middle initial?their mind skyrocket. Too many sales are have this put in the computer.” For a second Do you use it legally? Great, let me makemissed, because there is no practiced plan bump, sometimes I take the keys away and a note of that.” You are now successfullyat this stage. And if you are still using the hand them to the kids while saying, “Mom, completing a write-up.old, “Should we go inside and see if we can needs some help rubbing here. And mom,make the terms and figures agreeable?” line, sometimes the best luck is being flexible All of these techniques have been used byditch it. That script is so old the customers when the timing is right.” others and myself at our dealership and havehave it down better than we do. a great level of success. It is so important, Now that your customer has put the keys whether you use these techniques or others,Momentum is the name of the game here, in their pocket, you need to transition from that you use something. Get away fromand at the same time, you want to keep the the car to your desk with as few hiccups as the big obvious trail closes that have beencustomer at ease so their defenses stay as possible. Since people fear the unknown, around for decades that every customerlow as possible. Let’s go through some make the process known to them. It will knows (and resents). Practice so thatsimple techniques that will help. First, keep them comfortable, make the transition you are comfortable. Your comfort andyou must be on the demo ride with your easier, and you will feel in ultimate control. confidence will make or break you, becausecustomer. Second, you using a ‘sold line “Sue, the next step is for us to go inside and today’s customers are more sophisticatedclose’ coming in from the demo to the for me to collect a little information from than ever.dealership. A quick review of a sold line you, so you can start enjoying your newclose is: car as soon as possible. Are you going to Steve Hiatt is the General Sales enjoy it for a short drive to dinner, or are Manager of Hiatt Pontiac GMC, Hiatt 1. A series of yes questions you just going to cruise the waterfront?” Outlet and Hiatt of Auburn. He can be 2. A positive statement Waterfront. “Great, follow me.” Your contacted at 866.265.5616, or by email 3. A sold line hook customer now knows what is going on and at 4. An either/or closing question.It works like this, as you are driving F&Idown the road, “Hey Sue, isn’t that air Americas Premier Specialist Program Serving Dealers Nationwide Since 1998conditioning working great? Didn’t you Solutions, how the lumbar support felt on yourback? And with the great fuel economy,isn’t it going to be great saving some moneyevery month? Sue, it looks like we foundthe perfect car for you, as you pull into the TEMPORARY PLACEMENT OF F&I SPECIALISTS AND SALES DESKdealership there are three open parkingspots on the left, that are the sold line, just LONG TERM OR SHORT TERMpull in there. Oh, I almost forgot to ask, is Is Your Bottom Line Taking a Dive Because Your F&I Office is Short Staffed?your insurance card with you, or do we By the day, by the week, or by the month were reasonable, efficient, customer oriented and bottom line motivated.need to get it out of your old car before we Our highly qualified staff can meet all your finance needs. We have established rapport with many of the samewrap things up?” banks you use and we offer a list of references.After the customer has parked in the sold Before you lose another dime Call Frank Martin 866.247.9361line, do the following steps: lets talk about your F&I Solutions. 4
  4. 4. Taylor Techniques, Inc. AUTOMOTIVE SALES AND MANAGEMENT TRAININGThe Hottest In-house Trainer in the Country! Do you want bigger grosses? Do you want your sales force to prospect more? How would it make you feel if your sales people sold at least one car a day? Call Us!IF YOU DON’T MAKE IT, YOU DON’T PAY!I’ve managed some of the biggest storesacross the US and sold between 40-50cars a month for three years. How manytrainers have done that?I challenge any trainer in the country tobeat our record!Taylor Techniques helped us sell 198 vehicles in the first month, with an all-timegross profit record. The next 5 consecutive months we beat that record. Last Fran Taylor is the Presidentmonth we sold 248 vehicles with the highest grosses ever. How would you like and CEO of Taylorthose results in your dealership? Taylor Techniques, you guys are the best! Techniques, Inc. He can be contacted atMichael Hoops, General Manager of Marine Chevrolet, Jacksonville, NC MrFranTaylor@aol.com866 873 0041 Call Today!
  5. 5. leadership solution BrianBrian Tracy By Tracy Gaining Visibility Have you noticed your external dress and appearance are participate in charitable organizations and that some workers totally a matter of personal preference. professional associations. receive more Through their choice of clothes, their promotions and grooming and their overall appearance, Be able to set priorities. greater pay than individuals deliberately make a statement Learn how to separate the relevant fromtheir colleagues, this despite the fact that about the kind of people they are. The way the irrelevant when facing the many tasksthey are apparently not as competent as you look on the outside is a representation of the day. Managers place very highyou? This doesn’t seem fair. Why should of the way you see yourself on the inside. value on a person who can set prioritiessome people get ahead when others who It’s a good idea to dress the way the senior and move quickly to get the job finished.seem to be working much harder and people in your company dress. Dress for Dependability in job completion is oneeven longer hours get passed over for the position two jobs above your own. of the most valued traits in the Americanpromotion and the additional rewards that work force. When your employer cango with it? Join professional associations. hand you a job and then walk away and Research professional associations never worry about it again, you haveThe fact is, to be a great success, it is connected with your business or field. moved yourself onto the fast track, andimportant not only to be good at what Begin by attending meetings as a guest your subsequent promotion and pay areyou do but also to be perceived as being to carefully assess whether or not a virtually guaranteed.good at what you do. Human beings are professional association can be of valuecreatures of perception. It is not what to you. Determine if the members are Upgrade your work-related skills.they see but what they think they see the kind of people you would like to Continually look for ways to keepthat determines how they think and act. know and are well established in their your skills current, and make sure thatIf one person is perceived as being more careers. Then, if you have decided that your superiors know about it. Look forpromotable, then it is very likely that becoming known to the key people in this additional courses you can take to improvehe/she will get additional responsibilities association can advance your career, take at your job, and discuss them with yourand more money, even though there are out a membership and get involved. Pick a boss. Ask him/her to pay for the courses,others that can do a better job, if given the key committee and volunteer for service. but make it clear that you’re going to takechance. Find out which committee seems to be them anyway. Also, ask your boss for book the most active and the most influential and audio program recommendations. ThenFortunately, there are several things that in that organization and then step up to follow up by reading and listening to themone can do to increase visibility and the plate. Volunteer your time, expertise and asking for further recommendations.accelerate the speed at which they move and energy, and get busy. Attend every Bosses are very impressed with peopleahead in their career. meeting. Take careful notes. Ask for who are constantly striving to learn more assignments, and complete them on time in order to increase their value to theirDevelop competence. and in an excellent fashion. This gives companies.Determine what parts of your job are you an opportunity to perform for othermost important to your boss and to your key people in your profession in a non- Develop a positive mental and then make the decision threatening environment. You give them People like to be around people they liketo become very good in those areas. a chance to see what you can do and what and tend to promote them. A consistent,You must be perceived as being very kind of a person you are. You expand your persistent attitude of cheerfulness andcompetent at what you do. That perception range of valuable contacts in one of the optimism is quickly noticed by everybody.alone will bring you to the attention of most effective ways possible. The people When you make an effort to cultivate anmore people faster than you can imagine. you get to know on these committees can attitude of friendliness toward people,The perception of excellent performance eventually be extremely helpful to you in they, in turn, will go to extraordinarywill open up opportunities for greater your work and in your career. efforts to open doors for you.responsibilities, higher pay and betterpositions. Becoming good at what you do Join a well-known, In the final analysis, taking the time toshould be the foundation of your strategy charitable organization. become an excellent human being will dofor gaining higher visibility and rapid Become active by donating your services more to raise your visibility and improveadvancement in your career. to its annual fund-raising programs. your chances for promotion than will any You may not be wealthy now, but you other single thing that you can do. You canPay attention to your overall image. do have time, and your willingness to do it if you really want to.How you appear to others makes a real give of yourself will soon be noticed bydifference. A recent survey of personnel people who are higher up. Many men andexecutives found that the decision to women with limited contacts and limitedhire or not to hire is made in the first 30 resources have risen to positions of great Brian Tracy is the Chairman & CEO of Brian Tracy International. He can beseconds. There are many elements of your prominence as the result of getting to contacted at 866.300.9881, or by emaillife over which you have no control. But know the key community leaders who at 6
  6. 6. sales and training solution TerryByL. Isaac Terry L. Isaac Developing an Effective Sales Training Program It’s not how many opportunity to work for them and earn the results of the training. Track the sales people you their business. Give the customer a following: have but how reason for doing business now. skilled they are 6. Negotiation the terms - negotiate 1. Prospects that will determine the terms between the buyer and 2. Demos your ROI. Having the seller by establishing a neutral 3. Write-upsa training program in place will not only position between the parties. Achieve 4. Soldincrease your profitability but the entire profit, then close the sale. 5. Grossfuture of your dealership. Providing top Add more performance objectives tocustomer service to your customers starts the job description as needed. This tracking will give you the informationwith the person you put in front of them. you need to show your ROI and to retrainAssuring that you maintain a high level Objections that the sales people will the employee who will need furtherof CSI, as well as profitability training is encounter along the way should be training. It’s easier to retrain than to hire ainvaluable. The best way to develop the implemented into their performance new employee.program is produce a flowchart; this will objectives as well. If a sales person cannotgive you a process to follow step-by-step. handle objections he/she will become a Developing an effective training program clerk, and you’re training sales people. will set the stage for the success andAnalyze the job description. growth of your dealership today and intoThe job description of the sales person Design and format instructional materials. the future. It’s not an option.starts with a position description, when Format instructional material within aformatting this position you must have the manual that details the job description andinput of all managers: the GSM, the GM performance objectives to be implemented Terry L. Isaac is the Corporate Salesand the Owner. If everyone is not on the by every sales person hired. Review Trainer for the Neil Huffman Auto Group. He can be contacted at 866.265.4680, orsame page, it will only reduce the results the instructional manual for soundness, by email at’re aiming to achieve. Take each step effectiveness, wording and clarification.that the sales person must achieve with thecustomer, and write them down, agree and Train the trainer.disagree until you’re on the same page. Selecting the right trainer is important to the success of your program. The individual you select must have theIdentify performance objectives. following:Identify the performance objectives thatyou want your sales people to achieve. 1. Outstanding track record in aboveAddress each item on their job description average sales.thoroughly. 2. Good communication skills. 3. Motivational speaking skills toHere are some examples of performance inspire people.objectives: 4. The ability to master a process. 1. Meet and greet – to give the Heard the buzz? Find out for yourself what it’s all about. CarChip customer a positive first impression of Develop an interview process. is “a useful tool for the professional,” says one service manager. “Technicians dealing with intermittent issues can program CarChip to the sales person and the dealership. Format an interviewing process to select monitor suspect circuits, and then return the vehicle to the customer.” 2. Build a relationship with the an employee that can perform all items on It’s affordable, so there’s no need for large deposits. And once customer - the customer must feel the job description. This will lead you to a your customers find out about it, they may very well want one for themselves! Attractive packaging and full-color point-of-sale display comfortable with the sales person they qualified candidate for the job. help make the sale—adding to YOUR profits! are working with. Establish a positive Monitor any 4 out of 23 possible engine parameters including: feeling between the sales person and Deliver training. • RPM & engine load • Fuel trim • Intake air temp the customer. People do business with Start with classroom training by putting • Throttle position • Battery voltage • Intake manifold pressure the people they like. the training manual on overhead • Fuel pressure • Timing advance • Air flow rate • Fuel system status • Coolant temp • Oxygen sensor voltage 3. Select the right vehicle – find the transparent sheets. Have the students take Plus trouble codes, freeze-frame sensor readings, speed, distance, right vehicle to meet the customer’s notes (they will retain 23 percent more and accels & decels. Up to 300 hours of trip data—all for just $179! needs. Ask the right questions and with note taking). Teach one step at a Plugs instantly into OBDII port. Download to PC for detailed analysis and graphing. listen to their needs. time, students learn better with a step-by- ner Win 4. Demonstrate the vehicle - show step procedure. Role play each step; have Ask how YOU can become d eere the features and benefits to establish the student perform the process over and an authorized reseller! Engin duct Bestew Pro N value and justify cost. Find the hot over until they are comfortable. Film them points of the customer and sell the implementing the process, this will give TM ™ AUS0310 sizzle to motivate them into making you a view of their progress in training. the decision to buy. Davis Instruments 3465 Diablo Ave, Hayward, CA 94545 5. Ask for the sale – the sales person Track the results: ROI. 866.297.3152 • must ask the customer to give them the Develop a tracking program to determineoctober 2003 7
  7. 7. golf tips Brian By Brian Manzella Manzella Never Slice Again Do you slice? Most Period. Fix the clubface, and the slice goes golfers do. Even bye-bye forever. The compensations will 1 some people who often also go away quickly when they are hit the ball right- no longer needed. to-left are just slicers with enough The first step is to take any compensationcompensation to turn the ball the other out of your grip. You want a classic neutralway. Believe it or not, fixing a slice is grip (see AutoSuccess Magazine Sept. 03).usually pretty easy. Often, one can make a Once this is done, you want to learn thepermanent improvement in the first lesson. all-important motion of the right wrist.It’s easy, because there is only one thing Holding the club out in front of you, with 2that must be done correctly to correct the the shaft level to the ground and the scoreproblem. Most golfers have no idea what lines vertical to the ground (PIC 1), moveit is or how to do it. the clubhead backward by bending the right wrist straight back while you bendWhy do you think you slice, because you the right elbow toward you. Your handscome ‘over-the-top’? Reverse Pivot? Cut should stay directly in front of you as youacross the ball? ‘Hang back’ on your back do this (PIC 2). If you do this correctly,foot, etc.? the shaft will stay parallel to the ground, and the clubface will remain vertical to the 3Nope. You may do one or all of the above, ground. This is exactly the motion yourbut these ‘flaws’ don’t cause the slice, you hands should do during the them because you slice. Most golfers incorrectly ‘cock’ their rightYou slice, because the clubface is too open. wrist, which immediately bends the left 4 5 6 8
  8. 8. continuedwrist (PIC 3). This ‘double wristcock’ puts wrist bent (PIC 7). The clubface needs tothe clubface in a toe down position at the turn toward the ground past the ball on the 7top, with a bent left wrist and a flat right way to pointing toward the target. Thiswrist (PIC 4), the exact opposite of the swivel position should consist of a stillcorrect hand conditions at impact. flat left wrist and a ‘fully rolled’ whole left arm (PIC 8). As the club nears the finishBy bending the right wrist and twisting the the left thumb should be under the club,clubface away from you as you swing the and the left forearm should point straightclub to about chest high on the backswing toward the ground.(PIC 5), you put the clubface in a far lessopen position. The completed backswing After making these adjustments, mostshould have a flat left wrist and a bent slicers will be ex-slicers who need anright wrist, with the clubface ‘matching’ improved impact position to keep fromthe angle of the left wrist and arm (PIC hitting the ball too right to left, a problem6). Often, this ‘twist-away’, results in a that most slicers would love to have.slightly arched left wrist at the top. Butthat’s not a bad position to be in as you Next month, we will learn to lag thelearn to make your hands do the opposite clubhead and really compress the ballof what they were doing before. through impact, just like the pros.A key element to this slice cure is to ‘holdthe twist’ into the downswing. The clubface 8should look away from you halfway down,just as it did halfway back.Often, these adjustments will fix the sliceby themselves. But, most golfers need the Brian Manzella is a PGA Teachingfurther ‘insurance’ of a proper swivel of Professional. He can be contactedthe hands as the club travels to the finish at 866.873.0036, or by email atafter impact. Through impact your left, or visitwrist needs to remain flat and your right 2003 9
  9. 9. sales tips with David Thomas DavidByThomas David Thomas Brand Yourself How would you like Branding yourself can make you more occupation. to brand yourself as money than your name ever will. But do If you don’t believe in your product the ‘Honda Guy’, you know how to brand yourself? How and yourself, no one else will. the ‘Mercedes do you become the expert? How do you 2. Eat, breathe and wear your logo. Lady’, or the ‘Ford become the topic of conversation at social Do you proudly wear your company Truck Guy’? How events? brand on your leisure time?would you like to be recognized and 3. During social events, etc.mentioned everywhere you go as ‘The Car Here are some tips: Buy a couple of extra shirts and givePerson’, the automotive ‘go to’ guy/ gal? 1. Be proud of your product and them to key centers of influence to promote you and your product. 4. Drive what you sell. Consider using valet parking at key social functions and tipping a little extra to park your car in front for some great exposure. It’s a rolling billboard. 5. You must enjoy talking about cars. Even after a 12-hour day at the dealership, be enthusiastic and ready to discuss cars at dinner and social functions. This could be your best source of prospects and referrals. 6. Get involved. Give back to your community. Volunteer. Chose to involve yourself in an organization that you will enjoy participating in. You will be rewarded for your energy and efforts with exposure and recognition. 7. Show appreciation. Let everyone know that you really appreciate their referrals and that you need them. 8. Budget for self-promotion. Set aside $50 to $100 per month for personal advertising and self- promotion expenses. Some examples are: • Ad in community bulletin • High school program • Church, PTA or Alumni Newsletter • Classified ad • Radio traffic spot sponsor • Charitable event or auction Ask yourself, “What group can I identify with, that I will gain from repeated association with?” Make an investment in your future sales. Above all, ask yourself every day, “What can I do to meet new people and promote my love of selling cars today?” David Thomas is the Owner of Subaru of Dallas. He can be contacted at 866.429.6803, or by email at 10
  10. 10. marketing solution Brian Brian Ankney By Ankney Get More Bang for Your CRM Buck Keeping in who only shopped. A CRM system will contact with your combine all who visit sales and service customers by using to produce a massive database for future a CRM system is a marketing. Direct mail can be done in good idea, but how house with much lower expense and betterlong will it take to notice a measurable results by marketing to those who alreadybenefit? By the time the buying cycle shop your store. Emails with current salesrepeats itself, the market and your incentives can be sent to every person thatbusiness have changed. The benefits did not buy a car in the past 120 days infrom CRM are too far in the future to less than five minutes with absolutely noaccurately measure. The data collection expense. Service specials and couponsand process changes associated with can be emailed to every sales and serviceCRM offer many peripheral benefits that customer and shopper every month.can be enjoyed in the short-term. Don’tmiss out on the short-term benefits that A commonly overlooked opportunitycome with implementing a CRM system. when implementing a new CRM system is skills improvement. There are many storesThe easiest and fastest benefit to realize is where the sales people are telephoneshowroom traffic control. More important handicapped, at best. Giving sales peoplethan bringing more customers into your a bunch of tasks to make calls will notstore is selling those who are already there. bring more customers back unless youThis is achieved by getting a manager train them to make good follow-up calls.involved in every sales opportunity. By Work with your management team tocollecting customer information at the develop some effective telephone scripts.point of contact, a real-time log for phone, Add phone training to your morningfloor and Internet ups becomes a reality. meetings.Managers should be trained to use thislog to maximize every customer contact. Finally, the implementation of a CRM/In the first hour, managers should review showroom traffic control system willevery contact on the log and make sure change the tone of your showroom floor.that every avenue is exhausted with every Too often, sales people do nothing,customer. It is important to collect cell because they don’t know where tophone numbers to enable manager calls start or what to do. By clearly definingto customers who have just left the store. your sales people’s daily activitiesGrab sales that would have otherwise and using a software package to directeluded you by second facing every sales and monitor their progress, youropportunity. showroom floor will be transformed into a beehive of employees constantlyA second benefit is ensuring proper working toward additional car deals.and consistent follow-up on all salesopportunities. Most sales people will The opportunities provided by a well-strongly follow-up one third of the structured CRM/showroom traffic controlunsold traffic, the ups they think they system within any store are infinite. Itcan sell easily. These are the people who is important to benefit from as many asare missing a spouse, a trade or maybe possible.a cosigner. The other two thirds receiveminimal follow-up and thus few return Next month, we will discuss using yourto purchase a vehicle. By enforcing the CRM to raise gross profit by improvingunsold follow-up rules set forth in a CRM walk arounds and overall sales processes.system, all unsold traffic will receiveconsistent follow-up and more can bebrought back into the store to buy.Another benefit is the collection ofcustomer information from both thosewho buy and those who do not. Traditional Brian Ankney from AutoClick can beDMS systems collected only sales and contacted at 866.247.9587, or by emailservice customers but ignored those at 2003 11
  11. 11. sales and training solution Mark Tewart By Mark Tewart Philosophy of Success Obtaining success Learning what not to think or do can be as 4. Misunderstanding value. always boils important as what you should think and do. “If someone will give me a chance, down to one thing Here are some examples of unenlightened, then I can succeed.” “The marketplace – philosophy. The negative philosophies to avoid in order to cares about your seeds, not your choices you make gain success: needs” – Jim Rohnunder free will are usually based upon your 5. Being skeptical.own personal philosophy. Your philosophy 1. Placing blame. Educated decisions are necessary, butis molded from education, experiences The “It’s not my fault syndrome.” It’s skepticism obscures education.and relationships during the course of the dealers, managers, manufacturers. 6. Putting theyour life. Your philosophy is your belief Somebody or something is keeping cart before the horse.system. If you are not successful, simply you down. “If I were rich, then I would give.”change your philosophy. It’s really that 2. Believing in luck. 7. Ignoring the inßuence of others.simple. The “It’s not what you know, it’s “Who you associate with is how you who you know” excuse. Having the and others value you.”Success is based upon your philosophy. attitude that most people who have 8. Education stops at high school.Have you ever heard this quote? “Watch money or success inherited it or knew Read is the root of ready. Educationyour thoughts; they become your the right people. is a never-ending process. What youwords. Watch your words; they become 3. Creating false put into your mind always effects youryour actions. Watch your actions; they milestones and barriers. life.become your habits. Watch your habits; Example: “When ____ happens, then 9. Perception of work.they become your character. Watch your I will do _____.” or “I have to have Most people believe their work is whatcharacter; it becomes your legacy.” _____ to get _____.” they have to do, so they can be able to do what they want to do. “Make your vocation, your vacation” 10. Practicing needs vs. wants gratiÞcation. Your life is your choice. If you don’t like it, design a course to change it. You are always more successful living from choice and desire than from The Architects dedicated to serving the needs of automobile dealers. needs. You can spend your whole life trying to meet needs that are simply bad choices rather than living a successful life of choice. 11. Negative associations to money. “ David Sova of Car Store Design brought To make a lot of money, you have to a huge wealth of overall dealership design be greedy or work all the time. Or, knowledge as well as many practical you believe you are not worthy or that suggestions that will save us thousands people with money are different. of dollars short and long term. David was definitely a great investment for us.” Your philosophy is your choice. What your mind focuses on is what you move toward. Richard Burton, Dealer The most incredible thing you have as a Bedford Ford Lincoln Mercury human being is free will to choose your Bedford, IN philosophy. Your philosophy always precedes any system or series of choices that produce failure or success. Seattle, WA w Chapel Hill, NC w Ft. Lauderdale, FL To learn more call us toll free at 866.873.0039 email us:, or visit our web site: www. ca r storede sig Mark Tewart is the President of Tewart Enterprises. He can be contacted at 866.429.6844, or by email at 12
  12. 12. f&i solution Frank Martin By Frank Martin Implement Your Own Menu Presentation Every dealership benefits. Your first box will also include agree that the vehicle that still has 40,000 should be aware the payment. miles of full comprehensive warranty will that there is a be worth any warranty at all. What I’m liability risk for not For example: trying to say Mr/Ms Customer is that not offering everyone “Mr/Ms Customer, your warranty will only will this service agreement avoid the the same ‘protection give you three years or 36,000 miles high costs of repair work, it will enhancepackage’ for their vehicle. To avoid this of comprehensive coverage, however, the value of the investment you’ve made ondocument each transaction with each because your driving considerably more your new vehicle.”customer, and make sure their choices are each year than your coverage allows,initialed by them so you have something the manufacturer has made provisions toto reference in the event they return with protect your investment tailored to your continued on page 29complaints. driving needs. In your situation, you can add an additional two years and 64,000The best tool for accomplishing this miles of full comprehensive coverage.”preventive measure happens to be the best While you are talking write 6/100,000 astool for presenting all of the dealership’s part of option one. Go on to give some ofproducts to all customers, all of the time, the benefits. “This coverage not only paysit’s called menu selling. for any repairs, but it will also pay for labor, a car to drive while your vehicle isMany dealer service companies offer in the shop and, if needed, a tow truck tomenus to their dealers, the same get it there. If you happen to be 100 milescompanies that provide the dealership with or more out of town during a breakdown,the mechanical breakdown insurance, life, it will also give you an allowance fordisability, gap, etc. meals, hotels and/or incidentals up to $100 per day.” You may also want toWith a menu, you can offer everything add, “Your warranty will also provideyour dealership sells, explain all the you with roadside assistance. That meansfeatures and benefits to the customer, and if you have a flat tire, run out of gas, lockgive them the choice to choose which your keys in your car or, for any otherbenefit is best for them. It can be a very reason, you find yourself stranded, youhelpful tool in step selling the customer can call a number seven days a week,from one option to another, and it’s 24 hours a day, and someone will makealso very non-confrontational. Once the sure that you’re back on the road safely.customer initials the option they settle on, Another really nice feature is that you canyour whole presentation is documented. transfer your warranty to someone else,With this enclosed in the deal, you will should you decide to sell your car beforenever have to worry if all options were it expires.”offered. Now, go to the back page and draw aIf your company has not already invested diagram of two rectangles to representin a menu software program, then make cars, with a line in the middle to separateyour own. them. “Mr/Ms Customer, let’s say you had to go 60,000 miles on your vehicle (writeFirst, take a regular 81/2 x 11 sheet of plain 60K on top left of the rectangle). Underwhite paper. Fold the paper in half, twice, so present circumstances, this would leaveyou have a book that resembles a greeting you with no warranty.” Now, write a 0card. On the front, draw one vertical line at the bottom of the left example. “Withdown the middle and two horizontal lines your additional coverage, you could haveto make six squares. Each of these squares 60,000 miles on your vehicle (write 60Kwill have an option that you will offer to at the top of the right example) and stillyour customer. Before starting, ask all the have 40,000 miles of full comprehensivepertinent questions to determine the terms coverage that you can transfer over toof what you’re going to sell, like how many your prospective buyer.” Put 40K atmiles do you drive, are you married, do you the bottom of the right example. “Yourhave children, etc. vehicle is going to depreciate with or without a warranty.” Draw a line throughIn the first box, list all your products in the left example from top past the bottomorder of most importance (highest gross with an arrow at the end, and draw a linepotential), this is the box that you feature half way through the right example withall of your products and explain the an arrow at the end. “I think that you’lloctober 2003 13
  13. 13. sales and training solution Joe Verde By Joe Verde Leadership vs. Management What makes a sales To make it even tougher to be really couldn’t create the systems and processes manager really effective, when you add ‘sales’ and lacked the personal selling skills effective in this management to this mix, you now require required to be able set the example to pull business? this leader/manager to have the additional off their vision. skills of a professional sales person. Why?The answer is complicated, because there Without those skills, this leader/manager As a manager of the sales department,is so much involved in being a good sales can’t control, can’t train and certainly can’t you’ve been given the most important, yetmanager (leader). And to clear the air, be out front setting the selling example. most complex position in your dealership.when referring to sales managers, it’s The lists under sales and management are And your success or lack of success in thisevery manager in the sales department … what you hire each group to do. The list position determines the overall success orDLR, GM, GSM, SM, NCM, UCM, ASM, under leadership is the additional skills/ lack of success in your dealership.etc., because each one has the on-going traits that a manager must also have to pullresponsibility to help manage and lead the off management responsibilities. Many sales people are poorly trained insales team to more success, every month. Sales Management LeadershipThis is leadership and managementsimplified: Follow the basics Establish selling procedures Develop a vision Close the sale Recruit and hire Take the lead You ‘lead’ people. Handle objectives Train effectively Set the example You ‘manage’ things. Follow-up Track and monitor Reward the team Prospect Motivate the team Quickly adapt and adjustThere are many great leaders or people Handle the phones Set the goals Make critical decisionswith potential in this business, and there Require people’s best Negotiate (or set up) Lead the teamare many great managers or those withpotential to become great managers, too.The problem is finding someone who Work the list from right to left to see a 95 percent of dealerships. If there couldcan combine both the talents to become clear picture – we’ll use follow-up, as an be something worse than not training thea great leader and a great manager at example here. sales force, it would be that the peoplethe same time. Why is that so difficult? who’ve been put in charge of those salesHere are a couple synonyms for lead(er) 1. (Lead) A leader develops the people have had even less training in howand manag(er). Think about them for a ‘vision’ to increase sales, gross and to manage and how to lead their sellingsecond, and then we’ll talk about sales CSI by building a solid customer base team and the dealership to more of repeat business. 2. (Manage) As a manager, he/she then Every manager in your dealership Lead Manage must develop the ‘procedures’ to make who is involved in sales has to learn sure each customer is ‘sold’ correctly how to ‘sell’, they have to learn how Be First Control and ‘followed up’ effectively, so they to ‘manage’, and they have to become Guide Succeed can build that customer base. Then ‘leaders’ if you’re to have any real they must ‘track’ the sales people’s chance of competing effectively. You canAnother catch is, you have to become activities to make sure the process is succeed and grow every year in sales, andgood at both leadership and management followed. you’ll make it happen by developing bothbefore you can be good at either one of 3. (Sales) And then, to be able to your management and leadership skillsthem. Anyone can ‘be first’ (leadership), ‘train’ the sales force effectively, and qualities.but you have to be in ‘control’ they’ll have to have a high personal(management) or being out front doesn’t skill level in follow-up, prospecting,matter. That’s one of the challenges now; using the telephone effectively andthere are a lot of people in management the organizational skills to show saleswho are out front doing their best to be people how to set up their follow-up/a good leader, but they’re ineffective in prospecting (processes/training/control),and they never have enough of a positive A lot of great sales people have beenimpact on unit production, gross profits, promoted to management and failedCSI or of building a solid customer base miserably – we’ve all seen it happen. Joe Verde is the President of The Joefor your dealership. And the reverse A lot of great process managers have Verde Group. He can be contactedof that is, great process managers who failed to get any production from their at 866.429.6689, or by email atmessed up everything, too, with their sales team, too. And many a great leader, or visitpoor leadership skills. has gone down in flames, because they 14
  14. 14. Get it at ADESA auctions ADESA Atlanta • ADESA Golden Gate ADESA Indianapolis • ADESA Kansas City ADESA SeattlePower Buying ...From August 5th to October 20th, each Chrysler, Dodge and Jeep dealerpurchasing qualifying units from any ADESA factory sale accumulatesBUY FEE CREDITS* that could earn them up to $10,000 in buying powerat the new ADESA Atlanta Grand Opening Sale on October 27th.* Qualifying units are GDP and company cars, excluding buybacks and 1Bs. Requires a minimum of 12, maximum of 50 units purchased. Qualifying internet sales included in promotion.Power Selling ADESA Atlantas new facility as they host the biggest DaimlerChryslerFactory Sale EVER on October 27th, with over 2003 vehicles, featuring arecord number of DC Select units and company cars.Power it up NASCARs BUSCH Race & GEORGIA 500 on October 25th & 26th.Celebrate with race tickets, refreshments, dinner & more!Power membership the exclusive DaimlerChrysler Dealer Lounge. Enjoy a quiet refuge,gourmet food, computer workstations and other special privileges.Call direct 770-252-7150 for atlanta sale details To get the EDGE on October 27: call ADESA Golden Gate (209-839-8000), ADESA Indianapolis (317-838-8000), ADESA Kansas City (816-525-1100) and ADESA Seattle (253-735-1600)
  15. 15. feature solution Kevin Kevin Smith By Smith Customer Retention: A Profit OpportunityCustomer attrition is one of the biggest per month, you would write 1,200 repair most sales people do selling your dealership?expenses in your dealership on an annual orders monthly. This equates roughly to 15 What tools do you give your sales team tobasis. It is estimated that you loose 25 - 25 percent ongoing service retention and brand your service department?percent of your total customer base annually will provide you a gauge to measure yourdue to customer attrition. This represents dealership regarding customer retention. At time of delivery, the customer is issuedover two million dollars annually in lost a dealer customized gift card. The salesopportunity cost for the average dealer. In order to improve your customer retention, person enters the customer information into you must first evaluate where 80 percent of a customized web site.On a daily basis, you identify the biggest your customers are having their serviceopportunities and challenges within your work done. Are you losing their business They simply enter the account number onbusiness. You quantify nearly every major to other franchise dealers, because they are the back of the card, name, address, phoneexpense and profit opportunity on your closer or more convenient? number etc. (approximately a one minutefinancial statement. You measure it, develop process). The information is housed at aa plan, monitor your plan and adjust your Over 75 percent of all service work done credit card-like dual redundancy serverplan based on the data you receive. in the US is performed by independent where it retains the data. The data is quick lubes and tire stores. The perceived then transmitted to a dealer specific webWhat plan do you have in place to attack price and convenience lures them in and location.your biggest expense and opportunity cost? then they develop the habit of returningHow do you measure and quantify its continually. Human nature says people The card has a magnetic strip that is encodedeffectiveness? would rather continue to do business at the with customer benefits and a total card value. same establishment. They eat at the same Each time the customer comes in, they giveHeightened awareness regarding customer restaurants, shop as the same stores and the card to the cashier. The cashier swipesretention is prevalent. It can be 10 times as have their hair cut at the same place. the card in a dedicated credit card machine,expensive to solicit a new customer, as it is which is attached to both the Internet andto retain a current customer. But how do you But what else drives customer habits? the server.functionally facilitate improving customer The airlines, banks, grocery stores have itretention within your dealership? figured out, rewards programs. The more The terminal prints a receipt that shows you utilize these businesses the more points, the amount of the discount, as well as howThe answer is, the service department. dollars, merchandize etc. you will receive. much the customer has accumulated toward If you question the premise, look no further their next vehicle purchase. The receipt isThe customer is 17 times more likely than the wallet or key chains of your next stapled to the repair order, and it is treatedto repurchase from your dealership if ten customers. Once more, look in your like any other coupon. This feels like realthey use your service department on an own wallet or your spouse’s wallet or key cash to the consumer, like an actual creditongoing basis throughout their ownership chain. Look for your airline card, Costco or card transaction.experience. Now, think about your current Sam’s card, Blockbuster, Safeway or yourrepeat customers, nearly every one comes local grocery store, etc. Each transaction is recorded in the system,from your service drive. and the data is available by an 800 number Loyalty rewards programs are designed to or via the Internet to the consumer. TheyLet’s look at the average dealership. The transition your customers from your sales can check, at any time, to see how muchchallenge is that they only transition 15 department into your service department they have utilized or how much they have- 25 percent of customers from the sales and back to your sales department. They accumulated toward their next purchase.department into the service department increase sales, increase front- and back- endand retain them on an ongoing basis. Your gross, stop people from shopping and, most Your management team can run numerousdealership numbers may be slightly higher importantly, brand your dealership as a ‘cut tracking and sorting reports to targetor lower than average. above’ the rest of the stores in your market. market customers. For example, if you wanted to run a report of all of theAs a general rule, you will write six times the Think about your sales people, they usually customers who purchased a vehicle four tonumber of repair orders as you sell vehicles do a good job selling themselves. Most do six months ago but who had not returnedmonthly. Therefore, if you sell 200 cars a good job selling the vehicle. How well do for service, you can pull that report then 16
  16. 16. feature solution Example of possible beneÞtstarget market the customer. BeneÞt Discount Amount Dollars towardDealer rewards programs increase front- next purchaseend volume and gross profit. If you are 1st oil change N/C $29.95 $29.95giving the customer $2,000 in perceivedcash to use at your dealership, do you have Every other oil change N/C $449.50 $449.25to beat the dealers deal down the street by (Must perform all recommended factory maintenance at dealership.)$100? Dealers utilizing dealership rewards (15x $29.95)programs have seen a seven to ten percentincrease in their total sales volume. Dealers Every other 72 point $449.50 $449.50have also benefited from a $143 increase per inspection N/Ccar increase in front-end gross profit. (Must perform all recommended factory maintenance at dealership.)How does a simple credit card tie them into (15x $29.95)your service department? It doesn’t, the card Every other tire rotation N/C $127.60 $127.60simply records and quantifies the data, andserves as a constant marketing reminder (8x $15.95)each time the customer opens their wallet. $200 off service contract $200 $200 purchasesYou must take credit for what you are Car washes $243.55 $243.55already giving to the customer. Oil changes,shuttle services, car washes etc. Quantify 10 percent off all other service $500 $500the free or discounted services you provide Total card value: $2,000 $2,000to the customer and take credit for them,build value, brand your dealership and yourservice department. gift card to use, would you shop at the customer base is having their service done. store that the gift certificate was from or its Take a page from the quick lube and tireDo what the tire stores and quick lubes competitor. stores and offer the customer competitivedo, get competitive on low cost repetitive prices on low end, repetitive maintenanceservice items, and make coming to your What is the result on your service items.dealership a habit for your customers. department? Dealers utilizing rewards programs have experienced as much as a Then quantify the savings you’re givingMake doing business at your service 15-25 percent increase in hours per repair them to increase front-end gross profit anddepartment like returning for other periodic order. When you develop and ongoing and sales transactions. Like going to the repetitive relationship with the customer, upsame restaurant, bank, dry cleaners, airline sell is easy. Customers are conditioned for rewardsor grocery store and then use the card to programs. The more they use at yourtrack it, and let the customer earn dollars for Dealers utilizing rewards programs have dealership, the more they will earn towardtheir future purchases. experienced a 15-25 percent increase in their next purchase at your dealership. total repair orders over a two-year period.Here is an example of how dealers Then track how much they are utilizingaccomplish this: What’s the bottom line? A 15-25 percent the card, and target market your customer increase in hours per repair order and a accordingly.These are only an example card discounts 15-25 percent increase in total repair ordersand packages vary from dealer to dealer will mean over $200,000 to you annually inwith as little as $500 packages up to $3,000 bottom line net profit, as the average dealer. Kevin Smith is Chief Operating OfÞcerpackages. at the Ensurety Group, Inc. He can be As new car franchise dealers, it’s time to contacted at 888.886.9394, or by emailThe premise is simple, if you had a $2,000 pay attention to where 80 percent of your at 2003 17
  17. 17. marketing solution Dennis McDonough By Dennis McDonough Sales From the Internet: How to Limit Spam The Internet has Many spammers use spider programs to will return a list of pages that need to be great tools for crawl the web and gather email addresses modified. finding information off of websites. Including an email address about your on your website is important. People will Don’t use the mailto: hyperlink tag. Instead customers, vendors want to contact you. Special formatting provide a contact form that your customer and the competition. can turn a generic text email address into can complete, that is sent via email from theThere are applications like email and instant an active hyperlink. By using this format a web server to you.messengers that allow you to quickly customer can click on your email link andcommunicate. There are a lot of benefits, automatically open up their email program. Use a graphic image instead of text tobut with the good also comes the bad: display your email address on your website.SPAM. While email addresses are a neccessity on every website, this mailto: link can be used Check the meta-tag within the code of yourSpam is defined as flooding the Internet against you. The spider engine can pick up website. Meta-tags are hidden words used towith multiple copies of the same message, an email address that is included in the text describe your website, allowing your site toin an attempt to force the message to people content, and your email address will find its be indexed by search engines. If any emailwho would not otherwise choose to receive way on to countless mailing list which are addresses are listed within the meta-tags,it. Most spam is junk advertising. then used by spammers. remove them.Spam is often for dubious products, get- Here is how to stop the spiders from picking These steps should help curb your unwantedrich-quick schemes, quasi-legal services up your email address: spam emails that take up your time.and some are just hoaxes. Spam is easy tocreate, and it costs the sender very little to A good place to start is to test to see what Dennis McDonough is a Consultant forsend, most of the costs are paid for by the pages you need to change. He can be contacted atrecipient or the carriers rather than by the is a text-reading spider, like spammers 877.354.1998, ext 202, or by email atsender. Some spam is targeted for individual use to gather email addresses. Search for, or visitusers with direct email messages. the complete email address and Google Service Advisor Training All Skill Levels Presented by.... • Increase Customer Paid Labor Sales and Parts Sales. • Increase Customer Satisfaction Scores. • Increase Customer Retention. • Set up a Non-Confrontational Jeff Cowan Complete Selling System and Culture. • Learn to Sustain Growth. • Learn to Control Your Customers and your Workday. • Learn how to Walk Around Every I Will Turn Your Service Clerks Into SELLING Service Car, Every Time TM Advisors. We Deliver The Most Intense Powerful Two • Learn the Sit, Flip, Pop and Day Workshops You or Your Service Advisors Have Look TM Technique. Ever Experienced! • Become a “Full Service Promise” TM dealership. We Also Deliver Our World Class Training In-House On Your Service Drive or On DVD. We have recently In-house on your service re-recorded our DVD’s. They now offer 40% More drive, offsite or on DVD Content and are available in Spanish. ASK FOR SUSAN FOR YOUR FREE 866.265.5552 DEMO DISK - RESERVE YOUR SEATING TODAY! SPACES LIMITED 18