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AutoSuccess Oct03

AutoSuccess Oct03



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 ...

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

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

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    AutoSuccess Oct03 AutoSuccess Oct03 Document Transcript

    • “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
    • 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 www.jdrfe.org dedicated to finding a cure Psalms 37:3-5 Patrick Luck, Editor & Publisher inventory Success Driven Solutions • pat@autosuccess.biz Trust in the Lord, and do good; so Susan Goodman, VP of Operations you will dwell in the land, and enjoy • susan@autosuccess.biz security. Lindsay Porter, Copy Editor Take delight in the Lord, and he will 756 South 1st Street, Suite 202 • lindsay@autosuccess.biz 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. • sara@autosuccess.biz Facsimile: 502.588.3170 In God We Trust Web: autosuccess.biz 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 orinfo@autosuccess.biz. 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.
    • 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 shiatt@autosuccess.biz. 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, Inc.love 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. financepool@aol.com www.financespecialistpool.com 4 www.autosuccess.biz
    • 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!
    • 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 attitude.company 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 btracy@autosuccess.biz. 6 www.autosuccess.biz
    • 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 tisaac@autosuccess.biz.you’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 • www.carchip.com must ask the customer to give them the Develop a tracking program to determineoctober 2003 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 backswing.do 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 www.autosuccess.biz
    • 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 bmanzella@autosuccess.biz, or visitwrist needs to remain flat and your right www.brianmanzella.com.october 2003 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 dthomas@autosuccess.biz. 10 www.autosuccess.biz
    • 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 bankney@autosuccess.biz.october 2003 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: information@carstoredesign.com, or visit our web site: www. ca r storede sig n.com. Mark Tewart is the President of Tewart Enterprises. He can be contacted at 866.429.6844, or by email at mtewart@autosuccess.biz. 12 www.autosuccess.biz
    • 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
    • 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 success.management. 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 systems.management (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 jverde@autosuccess.biz, or visitpoor leadership skills. has gone down in flames, because they www.joeverde.com. 14 www.autosuccess.biz
    • 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 ...at 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 ...at NASCARs BUSCH Race & GEORGIA 500 on October 25th & 26th.Celebrate with race tickets, refreshments, dinner & more!Power membership ...in 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)
    • 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 www.autosuccess.biz
    • 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 volume.business 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 ksmith@autosuccess.biz.october 2003 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. Google.com eCarLots.com. 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 dmcdonough@autosuccess.biz, or visitusers with direct email messages. the complete email address and Google www.eCarLots.com. 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 www.autosuccess.biz
    • leadership solution TimothyTimothy Gilbert By Gilbert Expense Control: Employee Efficiency All dealers have commission only. Think of every minute Things that a dealer or general manger the opportunity to as being either a productive minute or a should be tracking include: reduce the amount non-productive minute. Increase the ratio 1. How long it takes to complete a deal of inefficiency of productive to non-productive minutes with a customer and why that reduces their spent to increase profit. Look at it this 2. How long it takes to get contracts- profit. A key way, if the average time with a customer in-transit money from your lenders,question every dealer should ask is, “How to close a sale is three hours, and you which pay fastest and which are themuch profit could I make if I treated my have 10 sales people on staff, then every slowestcustomers well and didn’t leave any money day these sales people are costing the 3. How long it takes to get a vehicleon the table?” The answer to that question dealership 50 minutes of non-productive ready for salewill lead to a significant improvement in time. This translates into one lost sale 4. How many phone calls theboth operating sales and net profit. every three or four days. That could mean dealership receives per hour as much as 10 less sales per month. 5. How many of those are repeat orLast month, we talked about making more follow-up phone calls by customersmoney by adding just one more labor hour The result is that someone else has to 6. The average time a customer sits inper repair order or by selling just one more clean up the mess or take responsibility the lounge waiting for his/her vehiclevehicle per person per month. Now, we for the one who slacks off. The only way to be fixedwill focus on keeping more money in- to eliminate these kinds of challenges is 7. What are the most commonhouse. That is, keeping excessive costs to set a policy, and enforce it until the customer complaintsdown to increase profit. Look at expenses new policy becomes a habit. Track theon a person-to-person basis and on a day- activities of your employees and measure Recognize that this is only a brief, partialby-day basis. their performance. list; add your own items to this list to make it unique for you.Wasting money and excessive spending Start tracking as much activity as youbecomes habit. In order to get a good can. Do you know, for example, how Next month, we will discuss expense controlhandle on expenses, you need to examine long it takes to get a permanent plate for a in advertising and policy adjustments.the daily activity and find those habitual customer or how many phone calls it tookareas of wasteful inefficiency. to track it down for the customer? Keep Timothy Gilbert is an Associate a log of time in and time out for vehicle Professor and Chairman of thePossible wasteful habits: registration. This may only save you a Automotive Marketing Department at 1. Employees getting to work just a few minutes, but in a larger dealership, Northwood University Florida Campus. little late excessive inefficiency may result in He can be contacted at 866.274.3792, 2. Technicians leaving shop tools out additional and unnecessary employees. or by email at tgilbert@autosuccess.biz. instead of putting them back in the crib 3. Employees making too many personal phone calls from the office phone Another SatisÞed Subscriber... 4. Technicians leaving vehicles a little “AutoSuccess helps me stay on an edge of learning that excites my mind into messy action on a new level. The articles all have some angles on our business 5. Service writers not probing that give us the edge...but only if we use them. the customer for a more accurate description of the needed repair The tips I pick up from the magazine make my job, now 19 years and counting, 6. Employees leaving vehicles and more exciting each day. If our mind can stay excited, our spirits lifted, then we other dealer assets outside in the can take care of all objections and obstacles that come our way. weather 7. Employees taking a little longer Reading the magazine from cover to cover is the only innoculation against break than authorized professional stagnancy. Status quo is a myth. If you are not getting smarter 8. Sales people spending too much then you are getting dumber, no matter how many years in the business you time reading the newspaper have.If one sales person arrives late to work Don’t make your time in the business just a repetition of your previous year,by five minutes, that’s lost time. By not make this year the best yet...and continue to improve...read AutoSuccesstackling this challenge immediately, it sets Magazine. It is the easiest way to offset the barage of customers who say,a tone that says it’s all right to be late just “The price is too high.” or “The payment is too high.” or “You’re not giving mea little. The next day, three or four sales enough for my car.”people arrive a few minutes late. Sooneror later, all of the sales people are getting You have the tool...use it!”to work a little late. Some managersmay take the position that it really does Owen Rachal, Mike Calveri Toyotanot matter since they are being paid byoctober 2003 19
    • leadership solution MarkByLudwig Mark Ludwig Make Your Dealership Work for You It is time to analyze chart 1 how your dealership Calculate net per retail. Sample: generates profits. Are you making the Year to date net proÞt before income taxes: $________ $650,000 most of your time Year to date retail units: _________ 1,300 and effort? Beinga dealer isn’t an easy job, you must be Net per retail (divide net proÞt by retail units): $________ $500able to market your dealership, superviseand lead a diverse group of employees, Domestic / import: High Line:control a variety of inventories, deal withmanufacturer issues, make your customers 0 - $200 Concerned 0 - $500happy, retail vehicles, parts and service, $200 – $400 Needs improvement $500 - $1,000etc. $400 - $800 Average $1,000 - $1,500 $800 - $1,000 Above average $1,500 - $2,000It can be easy to get caught up in day- $1,000+ Great job $2,000 +to-day operations, take a step back, andevaluate your performance: (chart 1) chart 2 How much income do we need to Þnd? Sample:This is a great way to look at yourperformance. All departments participate, Net per retail you would like: $_________ $800and it doesn’t matter where dealer handling Net per retail from above: $_________ $500fees, holdback or advertising credits arerecorded. Now, let’s look at where you Difference: $_________ $300want your dealership to be. (chart 2) Year to date retail units from above: __________ 1,300Now that you have quantified how much Additional income: $_________ $390,000additional income is needed, you must get # of months in year to date: __________ 10there? Additional income needed by month: $_________ $39,000Send the message.A goal can’t be accomplished unless or higher, but in the short-term begin with Sell fewer units.your team knows what it is. Talk to your an attainable goal. Ask each manager how The initial reaction is to sell fewer unitsmanagers about your expectations. In your much they can contribute to the overall and then income per unit will go up. Thisnext meeting, let everyone know how $39,000 (chart 2) monthly increase in is incorrect, your overhead is alreadyimportant it is to raise your net per retail profits. Get them involved. Display the covered, and your incremental grossfrom $500 per unit to $800 per unit. In monthly net per retail by month where all less selling expense is greater than yourthe future, you will want to reach $1,200 managers can see. target, net per retail. If it isn’t, you need to HOW TO EASILY SELL MORE VEHICLES FOR MORE GROSS PROFIT THIS MONTH! Tewart Enterprises Inc. offers the most advanced, results oriented, college- level, custom training available today. We GUARANTEE an increase in sales and gross profit or your money will be refunded! WE OFFER THE FOLLOWING TRAINING: FREE Newsletter! Management Phone Skills Go to www.tewart.com Basic Sales Negotiating/Closing/Desking & click on newsletter. Advanced Sales Customer Service For FREE Consultation: 866.429.6844 or 513.932.9526 20 www.autosuccess.biz
    • continuedevaluate your vehicle gross, F&I gross and Focus on expenses. percent of gross. It is very important to staycompensation. If you can increase your Now that you have established sales and within your guidelines in order to build themarket share, it will do wonders for your gross goals, you can work on expenses. net per retail.net per retail. In addition to the additional The largest expense is personnel. In thegross, you will have additional income majority of dealerships 50 percent of In measuring each expense, use a checklist.from advertising and floor plan credits, the gross goes to employees. Since this Does it effect sales, gross, employeewhile reducing floor plan interest expense. is such a key area, you need to take an satisfaction, customer satisfaction or employee inventory by department. Do provide a great place to do business. If not,Discuss sales volume with parts and you have too many employees? Are you you probably should eliminate it. Are youservice. Are they marketing correctly and paying overtime? What is your gross paying too much? Explore the market, andretaining customers. Are they up selling per employee? Divide total gross per renegotiate your current contracts.on the service drive? Are you losing employee, and you should be from $8,000customers to other dealerships? Discuss to $10,000 per employee.these items with your managers, and With interest rates being so low and themonitor their number of customer ROs, Review the pay plans to make sure they are market staying relatively strong, it issales per RO and effective labor rate. Your accomplishing your goals. Your pay plans very important to get your net per retaileffective labor rate should be similar to should focus on market, gross and CSI. as high as possible. Keep your messageyour posted labor rate. A manager will exploit their pay plan, so strong, and structure your dealership to design it to be exploited. Look at personnel accomplish your goals.Cut expenses. expense by department as it relates to gross.The second reaction is to cut expenses, but F&I compensation shouldn’t exceed 18 Mark Ludwig is the Vice President ofyou will find a greater opportunity focusing percent of gross, total parts compensation ACAR Report. He can be contactedon gross. Dealerships leave thousands of shouldn’t exceed 28 percent of gross and at 866.247.9619, or by email atdollars in gross on the table every month. service compensation shouldn’t exceed 33 mludwig@autosuccess.biz.Make sure you are asking for enoughgross up front, you can always come downto make the sale, but ask for it up front.Nissan dealers, for years, couldn’t sell carswithout huge factory incentives, and theattitude became that there is no gross ona Nissan. Now that Nissan is producing agreat product with great gross potential, anumber of dealers are still in the ‘$800 isa strong gross’ mode. Don’t get into thatmindset, review your sales journal, andmake sure you have some $5,000 grossesto offset your $200 grosses. Make sureyour used gross including dealer handlingfees are between $1,600 and $2,000 perretail. F&I gross should be from $800 to$1,400 per retail unit. If your dealershipdoesn’t fall into these parameters, analyzeyour results with your managers, and askthem why. Do not accept excuses, youneed results and a plan to reach them.Review your percentages in parts andservice, you may not want to set themarket, but you want to be close. Onearea to find a lot of opportunity for grossis on internal work. Parts gross percent ofsales internal should be at least 30 percent,and service internal should be at least 75percent, while some dealers are getting 40percent in parts and 80 percent in service,while maintaining their benchmarks inused vehicle gross. A change in internalpercentages will have no effect on new andused car gross, since they are still workingfor the same gross.october 2003 21
    • sales and training solution Tony Ray Munson By Tony Ray Munson Achieve Successful Transitions There are a series The next transition point is moving from • Let’s see if we can fit this into your of steps that take the presentation of the automobile into budget. (This one is for the payment place with each a demo ride. The best way to make this buyer). Same thing here, just start for customer to move transition is to lead the customer into the your office. through the process car during your presentation. Explain to the • Is there anything else you would like of selling a car. customer that there are several important to add to your new car? Follow me.Some of the areas, called transitions, cause features on the inside of the car that you • It looks like we found your newthe sales person to experience discomfort. would like to share with them. Many of the car, am I right? Let’s go work out theLet’s cover how to achieve a successful new vehicles you sell today are loaded with details.transition for each part of the sale. systems: stereos, DVD players, navigation and climate control systems to name a few. Anything positive you can say to moveFirst, you have the greeting or welcoming After you have spent some time setting the them forward is what you’re looking forof the customer to the dealership. Directly radio station to their station, setting the here. This is a place where you will likelyafter this greeting, you should have the first climate and showing the many features, get resistance with the typical objectionstransition. You are trying to find out exactly benefits and advantages, it becomes natural and stalls. Be prepared for them, take thewhich direction you are going to lead the to just drive off. You are already in the car, pressure off with softening statements, andcustomer. everything is set, the car is running and off move forward. you go.Here are a few possible questions for the Finally, you may need a transition duringfirst transition: The next transition is when you get the close, use the summary close. A What would you like to see today? back from your demo ride. This one is transition statement on a summary close How can I be of assistance? important, because you must try to write- might be: What can I get you information on? up everyone. At this point, some sales people are afraid to ask for the sale. They • We have covered a lot of informationThese types of questions are not as likely want the customer to initialize moving in a short period of time. We shouldto get the “Just looking” response. Also, forward. Many customers will think that if take a moment to review some of thedepending on the answer, they may already you aren’t confident enough to ask them for key points we talked about.have a good idea of what they want. That the sale, then something must be wrong. If • We have talked about severalmakes this transition easy. However some you have been trial closing along the way, features, so let’s step back and gocustomers, at this point, have no idea what and even if you get a couple of objections over everything while it’s fresh in ourthey want. In this case, you should start which is normal, you should be assuming minds.asking them choice or alternative type the natural next step. Be positive here.questions. Picture the deal. Tell the customer to pull Now you reconfirm their needs, letting them into the sold line, get out of the car, then know you were listening and summarizeHere are a few examples: follow with these steps: with them all the features and benefits that Are you thinking about a car or truck? the car they chose has and how it fits their Are you leaning toward a regular cab • Let’s go ahead and see what your needs. Now you can go for the close. or extended? best price is. (This is for the buyer Would you like an automatic or a who has been beating you up on price.) Tony Ray Munson is the President of manual transmission? That’s all you need to say, and start for Sales Systems International, Inc. He Would you prefer two or four wheel your office. This is what the customer can be contacted at 866.265.6575, or drive? wants, so give it to them. by email at tmunson@autosuccess.biz. 22 www.autosuccess.biz
    • marketing solution Don Elliott By Don Elliott Making Manufacturer Certified Used Cars Work for You Don’t rely on dealer to support a certain level of protection from their used car purchase. your dictionary inspection, repair and follow-up to qualify to discover what to sell that manufacturer’s used car brand In addition to warranties and service ‘certified’ means in as certified. contracts, all certified used car programs conjunction with a require a multi-point inspection coveringused car. For the retail buyer, a ‘certified Manufacturer or factory certified programs all major and most minor components ofused car’ generally means that the certified vary from the certified used car programs the vehicle. The quality of the inspection isused car is better than all the other used offered by independent car dealers in one the key to the reliability of the certificationcars, because somebody has given it a significant area. When setting up their process. Roadside assistance, cooperativethorough inspection. program, the manufacturer is able to adjust advertising and adjustments to service the new car warranty policy to enhance the deductibles are also available with mostCertified used car buyers are willing to marketability or value of their brand of manufacturer certified used car programs.pay extra for the value and confidence certified used cars. Warranties are includedassociated with certification. Last year, as part of the vehicle, not as an option. The The growth of retail certification is a profitconsumers paid an estimated, overall cost of the warranty is included in the price center in the car business. Approximatelyaverage premium of $946 for a certified of the car and is usually transferable during 1.3 million certified used cars were sold inused car. High-end cars and SUVs were the life of the warranty. 2002. Through August of this year, sales ofat the top of the list for certified used car factory certified used cars are up 10 percentperceived value with retail buyers paying Service contracts are used to enhance the to 40 percent over last year, depending onas much as $2621 additional for cars in the value of certified used cars that do not have the manufacturer.luxury vehicle class. the benefit of a manufacturer’s warranty. Service contracts are an option that can be Are you taking advantage of the growthCertification is not new to the car business. negotiated, enhanced or removed, during in manufacturer certified used cars at yourSince the late fifties, Ford dealerships the sales negotiations. However, service dealership?would certify that all of their used cars contracts are almost always sold throughwere in good condition. Much has changed a third party and are often not transferable. Don Elliott is the Vice President ofin the last fifty years or so, but a clear Service contracts can be sold on cars that Marketing and Business Developmentdefinition of a certified used car can still be have a manufacturer certified used car at ADESA Corporation. He can beconfusing to the retail car buyer. warranty, offering the ultimate advantage contacted at 866.429.6848, or by email for retail customers who require maximum at delliott@autosuccess.biz.Today’s cars are more complex. Onlya trained technician with the properequipment can determine the physical and AutoSuccessmechanical condition of a car, particularlyif it has no repair history with yourdealership. Even more importantly, when Subscribe today to the bestyour customer is making a decision tospend $10,000, $20,000 or more on a used sales-improvement magazinecar, certification can provide the assurancenecessary to close the deal. Certification in the industry!fills the void between new car sales and the Buy your initial subscription for $75more traditional used car market. and receive additional subscriptionsIt is very important to do some research for only $38!about the certified used cars at yourdealership to avoid misrepresentingcertification to your customers. It is also Don’t miss this opportunity to trainnecessary to understand what certified yourself and your sales team withused cars means at the dealership downthe street. Certification is not consistent the best success driven solutionsfrom one dealership to the next. You mayhave a selling advantage or disadvantage available. Call Now!depending on how your product is 877.818.6620presented.Almost all manufacturers have a certifiedused car program. Most of those programsrequire a commitment from the franchiseoctober 2003 23
    • f&i solution GeorgeGeorge Jackson By Jackson How to Overcome Any Objection in Six Easy Steps The majority of permission from the customer to do so. the sale. Direct closes, such as, “Should I sales professionals As simple as it sounds, simply saying to just include it in your payment then?” or e x p e r i e n c e the customer, “And do you know why?” “So, do you want it?” are weak and can difficulty in works very well. It can also be used to easily lead to a ‘No’. Be more confident. overcoming create need by asking a question that you Expect the customer to say ‘Yes’ and give objections, because already know the answer to, such as, “Is him/her a choice close.they do not follow a process. They often protecting your budget important to you?”rely on one-liners or make the mistake of Let’s apply this technique to a customerhoping the customer just says ‘yes’ rather Step 4 – Feature/beneÞt presentation. who says he/she does not want a servicethan really asking the customer to buy. This is the most important part of the contract, because he/she can’t afford theThis could result in lost sales. presentation. Up to this point, your payment. objection response can be the same forOvercoming an objection is a presentation every objection that is received. You have “That’s a good point. Is payment your onlywithin a presentation. It requires the to modify this step for each objection. As a concern?” (Yes.)same professional preparation that is sales person, you have two responsibilitiesdisplayed in the product presentation. with this step. First, whichever technique “I can appreciate how you feel, andBefore overcoming the objection, it is you use, use it well. People respect a others have felt the same way. However,essential that you first figure out what type good presentation. Therefore, give them they found that even though the serviceof objection the customer has. There are one. Second, make sure that whichever contract may increase the payment, theytwo types of objections. The first type of technique you use actually addresses still wanted to enroll in the protection. Andobjection is broad and second is specific. the objection. If it does not address the do you know why? (No, why?)A specific objection (I can’t afford the objection, it does not matter how well youpayment.) tells you exactly why they will do it. Use visuals and examples. Think of Overcome the objection.not buy. A broad objection (I don’t need it as packaging the features and benefits ofit.) does not tell why the purchase will the product that you are attempting to sell. “Can you see how enrolling in the servicenot be made. It is difficult to overcome contract would simply protect youra broad objection until you turn it into a Step 5 – Trial close. budget? (Yes.)specific one. Saying to the customer, “I Now that you have overcome thecan appreciate that. What concerns you customer’s objection, you are ready to “Then, would you like five or six yearsmost about the coverage?” will work in close, but not so fast. You have to ask the worth of protection?” (6 years)the majority of the cases. Now, you are customer if the feature/benefit presentationready to proceed with overcoming the that you just made, addressed his/her Practice this technique, and you willspecific objection by following these six concern, and if you did it well enough. overcome more objections and remembereasy steps. The most common way to ask for a trial to welcome objections, because in most close is to begin the question with one cases, it is the only way to get the sale.Step 1 – Support and isolate. of these three phrases: “Can you see,…”It is important that you do not confront “Doesn’t it make sense,…” or “Wouldn’tthe customer or the objection. No matter you agree?” George Jackson is the Director ofhow unreasonable the objection may F&I Training for American Financial &seem, acknowledge it without being Step 6 – Choice close. Automotive Services, Inc. He can beconfrontational or agreeing with it. If Now that the customer has said ‘yes’ to contacted at 866.280.0301, or by emailyou agree, how can you possibly offer your trial close, you are ready to ask for at gjackson@autosuccess.biz.a solution or an alternative point ofview? Next, isolate the objection. This isimportant, because often the first objectionis not the real one. The customer may notprovide the real objection for fear you willovercome it and then he/she would have topurchase the vehicle. Make sure it is thetrue objection before continuing.Step 2 – Transition statement.A transition statement is one that bridgesthe objection and leads you to the processyou will use to overcome the objection.The most common and most effective are:feel, felt, found.Step 3 – Leading question.This is a question that leads to the nextstep and does so in a manner that obtains 24 www.autosuccess.biz
    • profit solution ADVERTISEMENT Scott Scott Joseph By Joseph How To Take Over Your Market Through Conquest Sales! Cheryl Cecil an offer from you that she couldn’t refuse? is ready to get a new or used car, and currently owns all you need to do is make them an the car you sell. Here is the secret – at this moment incredible offer, shouldn’t you do that? J&L Marketing there are thousands of these peopleknows if she prefers to buy new or out there, waiting to be sold. But you FREE Offer!used. She only lives four miles from can’t afford to wait and see if theyyour dealership, and is looking for will wander into your dealership. Call my office now at 800.346.9117another car right now. We have her They are yours for the taking. But, and ask for Lisa Wilson, or e-mail hername, address, and phone number, you have to take action. at lwilson@jandlmarketing.com. And,along with thousands more just like as soon as we receive your reply weher. In short, we have developed and fine- will immediately give you a FREE tuned a highly-targeted list of buyers market analysis of your dealership, toWill she choose your dealership who have not bought from you in the see exactly how many thousands ofto sell her the car she wants? past and are motivated to buy your customers like Cheryl are near your product now. store and are waiting for you to sellThe implementation of the Shelby Bill them cars.in June 2000 prohibiting the use of And, we have paired this list with anregistration information for direct incredible, high-impact verbiage that The Shelby Bill restrictions on vehiclemarketing purposes led us to find a will be irresistible to anyone who is in registrations make the challenge ofpowerful alternative to registration the market. It is easy and painless for attracting quality traffic (for conquestdata. After testing literally hundreds the customer, and delivers scores of sales) to your showroom greater thanof other lists such as credit scores and quality traffic for you the dealer. ever. Today, I urge you to discoverniche lists, we have a new list that is how powerful and effective this newproducing outstanding results; much list is - we have the results to prove it!better than any other we have tested. Dealers who do not Call or e-mail us immediately. actively pursue this listIf you know who is ready to buy a will lose market share Let us bring this type of high quality,new or used car, what stops you from that they may never ready-to-buy traffic to your dealershipselling them that car? Probably not make up. right now!much – the secret is knowing who isin the market now and what they wantto buy! But, imagine the profit for your dealership if you sold twenty to thirtyWhat if we gave you a list of people of these buyers every month? If youjust like our friend Cheryl that I don’t take action, this profit could go To receive this FREE market analysismentioned earlier? We know that she to the dealership down the street. The of your dealership, and see exactlyis in the market, capable of buying, choice is yours. You have to give how many customers like Cherylwithin miles of your dealership, and buyers like Cheryl a reason to come to are waiting for you to sell them cars,wants the type of vehicle you sell your store and not your competitors. please call my office at 866.856.6782– right now! How difficult do you from 8:00am to 6:00pm EST and askthink she would be to sell if she heard If you know precisely when a person for Lisa Wilson.www.jandlmarketing.com
    • sales and training solution Lydia Ramsey By Lydia Ramsey How to Seal the Deal in Seven Seconds Can you close a effectively as calling them by name. they are always the most important sale in just seven person. Say the customer’s name first, seconds? If you 4. Pay attention to and introduce other people to the client. make a great first your hair (your customers will). The correct words to use are “I’d like to impression you They will notice your hair and face first. introduce...” or “I’d like to introduce tocan do it even faster. Seven seconds is the Putting off that much-needed haircut or you...” followed by the name of the otheraverage length of time you have to make color job may cost you the deal. Very few person.a first impression. If yours is not good, people want to do business with someoneyou won’t get another chance with that who is unkempt or whose hairstyle does 9. Never leave thepotential customer. If you make a great not look professional. Don’t let a bad hair ofÞce without your business cards.first impression, you can bet that your day cost you the connection. Your business cards and how you handlecustomer is more likely to take you and them contribute to your total image. Haveyour dealership seriously. 5. Keep your shoes in mint condition. a good supply of them with you at all times, People will look from your face to your since you never know when and whereWhether your initial meeting is face-to- feet. If your shoes aren’t well maintained, you will encounter a potential client. Howface, over the phone or via the Internet, your customer will question whether you unimpressive is it to ask for a person’s cardyou do not have time to waste. It pays for pay attention to other details. Shoes should and have them say, “Oh, I’m sorry. I thinkyou to understand how people make their be polished as well as appropriate for the I just gave my last one away.” You get thefirst judgment and what you can do to be business environment. They may be the feeling that this person has already metin control of the results. last thing you put on before you walk out everyone they want to know. Keep your the door, but they are often the first thing cards in a card case or holder where they1. Learn what people your customer sees. are protected from wear and tear. That wayuse to form their Þrst opinion. you will be able to find them without a lotWhen you meet someone face-to-face, 93 6. Walk fast. of fumbling around, and they will alwayspercent of how you are judged is based Studies show that people who walk 10- be in pristine condition.on non-verbal data, your appearance 20 percent faster than others are viewedand your body language. Only seven as important and energetic, just the kind 10. Match your bodypercent is influenced by the words that of person your customers want to do language to your verbal message.you speak. When your initial encounter is business with. Pick up the pace, and walk A smile or pleasant expression tells yourover the phone, 70 percent of how you are with purpose if you want to impress. You customers that you are glad to be withperceived is based on your tone of voice never know who may be watching. them. Eye contact says you are payingand 30 percent on your words. Clearly, attention and are interested in what is beingit’s not what you say, it’s the way that you 7. Fine tune your handshake. said. Leaning in toward the client makessay it. The first move you make when meeting you appear engaged and involved in the your prospective customer is to put out conversation. Use as many signals as you2. Choose your Þrst your hand. There isn’t a sales person can to look interested and interesting.twelve words carefully. anywhere who can’t tell you that theAlthough research shows that your good business handshake should be a firm In the business environment, you planwords make up a mere seven percent one. Yet time and again, people offer up your every move with potential customers.of what people think of you in a one- a limp hand to their customer. You’ll be You arrange for the appointment, youon-one encounter, don’t leave them to assured of giving an impressive grip and prepare for the meeting, you rehearsechance. Express some form of thank you getting off to a good start if you position for the presentation, but in spite of yourwhen you meet the client. Perhaps, it is your hand to make complete contact with best efforts, potential customers pop up“Thank you for taking your time to see me the other person’s hand. Once you’ve in the most unexpected places and at thetoday.” or “Thank you for coming into the connected, close your thumb over the most bizarre times. For that reason, leavedealership.” Clients appreciate you when back of the other person’s hand and give a nothing to chance. Every time you walkyou appreciate them. slight squeeze. You’ll have the beginning out of your office, be ready to make a of a good business relationship. powerful first impression.3. Use the otherperson’s name immediately. 8. Make introductions with style.There is no sweeter sound than that of It does matter whose name you say firstyour own name. When you use the client’s and what words you use when makingname in conversation within your first introductions in business. Becausetwelve words and the first seven seconds, business etiquette is based on rank and Lydia Ramsey is the President andyou are sending a message that you value hierarchy, you want to honor the senior Founder of Lydia Ramsey, Inc. She canthat person and are focused on them. or highest ranking person by saying their be contacted at 912.598.9812, or byNothing gets other people’s attention as name first. When the customer is present, email at lydia@mannersthatsell.com. 26 www.autosuccess.biz
    • marketing solution Robert Robert Westall By Westall You Get What You Ask For Most dealers have reason to buy from you or a hook. When read or heard about you talk about hooks, various ideas come to the three pieces mind, most of which revolve around price of a successful or gifts. Prior bank asset sales, acquisition advertising sales and gifts all work well with four-daycampaign: people, product and promotion. events, but they don’t build your business.Let’s focus on one of the key factors in any They simply talk to the thrifty price buyersuccessful campaign - the message. that is in the market for the perception of a great deal. When traffic comes in andThe message is probably the most starts grinding away at price, (remember,important piece of your total advertising that’s what is being said to get them in) theand marketing plan; some ads lack this sales people become frustrated, becausepowerful message. You need to say the the customers won’t get off of price andright words in a pleasing manner to the fall in love with the vehicle.right people is not necessarily the case.It’s much more than that. You need to You will get what you ask for. If you don’tsell your product to and ask for the sale want to be the low-ball king, then stopfrom as many people as you can reach on talking about price. If you don’t want toyour budget, in a manner that they will sell loser deals, then stop advertising thatremember. Clearly explain your product, you do. A store cannot put a huge pricehow it would be beneficial to own and guarantee in place and then proceed tohow easily it can be purchased. Words and complain for the next six months aboutsounds and pictures develop images in the how cheap people are, and how they’dbrain, but it’s what you’re asking for that’s shop them for $50.important. What are you asking for? Does anything other than price sellThere are literally thousands of automotive vehicles? What happened to paying moreads running at this exact moment, and for something that people really want? Iffew actually communicate the message you could tell everyone something aboutthat the dealership needs to say. If you your store, what would it be? The answerchoose to use an advertising agency it is simple, offered value. Studies showshould understand your product and sales that value ranks higher in the consumersstructure and be capable of communicating mind than price, and value should notyour message to your target audience. be confused with a good price. Value is the complete package: customer service,There is a huge difference between quality of the vehicle, the vehicle fitting theadvertising and marketing. Advertising is customer’s needs, convenience and price.defined as: building name awareness. You Also, including payments on ad vehiclescan build name awareness, but that doesn’t is not the same as screaming lowest prices.guarantee that a sale will take place. Listing vehicles with payments will speakBuilding name awareness simply means clearly to a larger portion of your potentialthat when people think ‘dealership’, market. Convenience contributes to value,whether it’s a positive thought or negative, because everyone has paid more for athey think of you. product due to convenience. What value are you offering customers to earn theirMarketing on the other hand is defined as: business?placing a product for sale/asking for thesale. This is selling in ad form, and it starts Think about your message and howwith the script. Every ad campaign should it relates to your potential buyers.act as an extension of the dealership’s Also, think about your advertising andsales force. The message should mirror marketing in general and then determineyour sales culture right down to the very areas of concern.last little detail, including the closing.Think about it… how many more carswould you sell if you asked more people Robert Westall is the CEO of Ampto buy from you? Advertising. He can be contacted at 888.878.4887, or by email atMarketing also means giving people a rwestall@autosuccess.biz.october 2003 27
    • sales and training solution Fran Fran Taylor By Taylor Effective Sales Meetings Make your sales day. This only takes about two minutes. benefits of what it is that these people are meetings enjoyable, doing to be successful at selling. and you will retain Keep your meetings upbeat and fast paced, the attention of your this way your sales team is forced to pay Fifth, you should update your boards, sales team, and in attention. If they miss out on something, your appointment board, gross board, etc.turn, they will become more successful, because they weren’t paying attention, Don’t wait until the end or beginning ofmaking your dealership more profitable. it is their loss or their embarrassment the month to do this, update them daily. when they have to stop the meeting to ask By updating your boards daily, you willYour meetings should be short yet questions they should already know the be able to detect if anyone is having anyextremely detailed, informative and answer to. challenges and solve them right away.beneficial. Make sure your staff is at themeeting on time. If they do show up late Third, if you have any type of promotions Sixth is the training section of yourmake them stay outside until the meeting going, explain them in detail so that your meeting. Give each individual memberis over. sales team knows exactly what is going on of your sales team a topic to research and and will be prepared if a customer has any discuss (i.e. TO, closing, prospecting).First, have your F&I manager go over all question regarding the promotion. This Make sure that the topics that you givethe deals that they have in the works. If also ensures that your advertising dollars fit your store and the needs of your salesthere are any challenges, they should be are well spent. team. Having members from your salesreviewed. They should also go over any team do the training helps to keep thepaperwork that needs corrections. Fourth, go over the desklog. Only talk other members attention, especially if they about what people are doing right. Always are going to have to do it themselves.Second, update the used car sheets every discuss why, when and how and the Finally, give out money. Make the meeting worth going to. If you want results, give them incentives. If you want your sales team to know a specific word track or closing question, offer $5 to the first one that can say it word for word, correctly. Spread money around the room, but make Log 200-500% more opportunities! them work for it. If someone sold two cars the day before, give them extra money. The more times that you applaud someone for a Leader in Showroom Traffic, job well done, the better they will continue Lead Management, to do. Give them an exciting environment, and CRM Software and your sales team will want to be at the meeting and want to listen and learn Track all outgoing real-time showroom & desking control during the training sessions. phone activity internet lead tracking system Remember to keep your meetings positive, focus on what people are doing and doing 2-way active DMS integration right. Keep the meetings short and fast complete in-store training paced to keep your teams attention. Minimize data entry Talk about the important things and be with license scanner drivers license scan, worksheets serious but always have fun. Try these six techniques and your meetings will be & credit bureaus much more effective and beneficial to your dealership. track more The Higher Gear Group, Inc. bring back Hoffman Estates, IL 60195 more tel 866.873.0029 fax 847.310.3196 sales@highergear.com close www.highergear.com Fran Taylor is the President and CEO more call for a FREE consultation and demonstration of Taylor Techniques, Inc. He can be contacted at 866.873.0041, or by email at ftaylor@autosuccess.biz. 28 www.autosuccess.biz
    • continued Implement Your Own Menu Presentationcontinued from page 13 examination required and for pennies your dealerships products in whateverNow go back to the front page and under a day, you can be sure your family will order suits your store best. Now let theoption one put another product. For be protected, even before your estate is customer choose their option. Before youexample, write the word ‘gap’, for gap settled. Option one also includes disability let them initial that box, try to up sell theminsurance. Again, a picture is worth a or accident and health. This means that if to the next box, and then let them initialthousand words, so open the page and on for any reason your doctor tells you that the final choice. If they come back withthe inside right draw a diagram. “Mr/Ms you can’t work for an extended period of the charge that you didn’t offer everyCustomer, let’s say you had a balance time, your payments will be made for you option, pull out your menu, and remindon your loan for $15,000 six months every month until you are able to work them which option they initialed.from now. You had an accident and the again. You don’t have to be hospitalized,insurance company values your car at but you do have to be out of work for a Now you have complete documentation of$12,000.” Your diagram should show minimum of seven days, 30 days, whatever everything you’ve offered the customer.$15,000 on the left and $12,000 on the your schedule is set up for your insurance You’ve explained all the features andright and on the bottom, in the middle of company, and the payment for option one benefits of all the products, and you haveboth, like a triangle, put the difference or is $X amount.” a format that is uniform and consistent ingap, plus the deductible amount. “That the way you present all your products tomeans you would have to come up with Now that you’ve covered all of the everyone all the time. This format seems$3000 plus your deductible of $250 before products, features and benefits, your more spontaneous than premeditated, andyour old car loan could be satisfied, customer understands all you have to offer. the customer follows your pen as youand you could purchase another vehicle At this point, drop down to the second box, write down and explain the options withwithout having to absorb the loss. Your and offer all the same products without the complete attention to what you are saying.insurance company is only going to pay last product offered in option one. (Based You may find that if your menu is all filledwhat they decide is the value of the car, on the example given, accident and health in before you speak with the customer, thatand gap insurance will pay the difference would not be offered in option two.) The they will try to read ahead of where you areplus the deductible.” Some gap will even next option down would be option three, trying to focus, so do it as you explain it.pay $1,000 toward the purchase of their and that would only have the 6/100,000new car from the selling dealer. “Option and the gap. The top right box is optionone also includes credit life insurance. If four and should only include 6/100,000.needed, you won’t leave your family with Option five would only offer gap, and Frank Martin is the CEO of F&Iany extra burden if they were to lose you. option six would just be your base Solutions. He can be contactedThe premium is the same for you as an payment. Each box would show what the at 866.247.9361, or by email at18-year-old, usually there is no medical payment for that option is. You can offer fmartin@autosuccess.biz Survey Says... Please copy this survey and fax your answers to AutoSuccess Magazine 502.588.3170 1. What is your favorite topic? Sales & Traininig Leadership Marketing Fixed Operations F&I 2. Who is your favorite writer? 3. Do you receive more than one copy of AutoSuccess Magazine? 4. Have you ever contacted an advertiser from the magazine? 5. Have you ever contacted a writer from the magazine? Who? 6. Do you use the articles in or during training or meetings? 7. What topics would you like to see covered more? 8. What issues most concern your dealership? 9. Which department in your dealership has the most room for improvement? 10. If you could change one thing to make your dealership more successful, what would that be? Please tell us how we can improve AutoSuccess Magazine. Give it to us straight!october 2003 29
    • Or you can just use e-PULSETrakUse your computer for all it’s worth. No sticky notes required.The most powerful sales and marketing management system ever created is here. And its as simpleto use as it is advanced. e-PULSETrak harnesses the power of the Internet to help you log, trackand report sales statistics in real time. Build customer loyalty, increase repeat and referral business,and manage your sales efforts like never before. e-PULSETrak is like having an all-knowing sales assis-tant at your side. In fact, you may never have to read another chicken-scratched post-it note again.To learn how to harness the power of e-PULSETrak for your business, call Mark Strong at (800) 996-1952. The Power of Tracking
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