AutoSuccess Sep03


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

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AutoSuccess Sep03

  1. 1. “You now have a world-class grip.” pg.22 .biz September 2003 Sarah Gauss Maximizing Profits on Every Deal Profit From Your Architecture With a Customer Friendly Lot The Three Currencies of Success Practical Ways to Increase Sales Your Feelings-Journal: A Master Tool Improve Your Closing Ratio
  2. 2. manager I N S I D E driventeam operation uccessrevenue automobil 4 A Model for Sales Success solutions Tony Ray Munson 5 Practical Ways to Increase Sales Timothy Gilbert 6 Motivating Your Sales Team Bob Bullock profitprofessional 7 Your Feelings-Journal: A Master Tool Leo Weidner 8 The New Guy: Experience and Results Steve Hiatt 9 Profit From Your Architecture sales With a Customer Friendly Lot Jeff Margaretten10 Improve Your Closing Ratio David Thomas12 Five Principles of Effective Advertising Rob Mudd13 Maximize Your Menu Presentation George Jackson14 Wholesale Auto Auction Basics: Do It Right Don Elliott15 Sales From the Internet: Protect Your Computers Dennis McDonough16 Maximizing Profits on Every Deal Sarah Gauss18 The Three Currencies of Success Mark Tewart20 Managers Evaluation: Successful Leadership, Part 2 Joe Verde22 Get a Grip and Save Your Swing Brian Manzella23 Profit Starts With the Selling Process Terry L. Isaac24 Secure and Maintain Bernard Boule26 The Role of a Leader Brian Tracy28 Yellow Pages: The Search for Automobile Related Headings Stephanie Hobbs29 Three Tips for Using Innovation in Your Organization James Feldman A cure won’t just save children. Mary Tyler Moore It will save childhoods. International Chairman These kids live with 4-6 insulin injections daily. Plus, they face the threat of blindness, heart attack, kidney failure and amputation. Their only hope is research. The Juvenile Diabetes Research Foundation is closer than ever to finding a cure. Help us help them. Call 1.800.533.CURE or visit dedicated to finding a cure inventory Patrick Luck, Editor & Publisher Success Driven Solutions • Susan Goodman, VP of Operations • 756 South 1st Street, Suite 202 Lindsay Porter, Copy Editor Louisville, Kentucky 40202 • Amy Stuber, Advertising Services Mgr. Toll Free: 877.818.6620 • Facsimile: 502.588.3170 In God We Trust dealer Thomas Williams, Creative Director Web: • thomas@autosuccess.bizAutoSuccess Magazine is published monthly at 756 South First Street, Suite 202, Louisville, Kentucky, 40202; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 Subscription rate is $75 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorialsand graphics are subject to editing for grammar, content, and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; viewsexpressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccessmay occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA.Postmaster: Send address changes to AutoSuccess Magazine, 756 South First Street, Suite 202, Louisville, Kentucky 40202.
  3. 3. sales and training solution Tony Ray Munson By Tony Ray Munson A Model for Sales Success An interview with persistence and attitude and finally said for things I buy or take care of for my superstar sales I could start the next day. I said if I was customers. I also send them cards and person, David going to beat the top guy, I better start letters every 45 days, and I do my own Sanchez at Perry today, and that’s what I did.” advertising.” Ford - Lincoln - Mercury: Munson: “How did you do?” Munson: “Do you use a follow-up system?” Sanchez: “I sold 17 cars in that partialMunson: “How long have you been month and was the top sales person. I Sanchez: “Absolutely, I have for years.”selling automobiles?” made good money and have done well ever since.” Munson: “Do you take ups?”Sanchez: “Twenty-four years now.”Munson: “How did you get started?” Munson: “How many cars do you Sanchez: “Not many at all. Most of my average a month?” business is from repeats and referrals. ISanchez: “My dad wholesaled cars in only work about four days a week andMexico, and I started helping him. I was Sanchez: “Around 27, I have sold up to usually play golf four times a week. Ialways selling and trading things, so after 48.” have a customer base I follow, I prospectI moved to California, I thought I should Munson: “How much are you making a and I advertise.”sell cars and help out the Hispanic people year?”in the area. I went to a local Ford store Munson: “What type of prospecting doand kept asking for a job. One day, I was Sanchez: “About $220,000 or so. I also you do?”in the owner’s office, and I looked on the spend a little to make a lot.” Sanchez: “I make some cold calls andboard at the top sales persons name. I told then whenever I meet someone new, I talkthe owner that if I didn’t out sell his top Munson: “What do you spend money on?” to them about their vehicle and possiblesales person that month that he did not Sanchez: “My customers. I usually have business down the road.”have to pay me. The owner liked my a service bill around $1,500 per month Munson: “That’s a different approach than most sales people are using, you’re working smarter, not harder.” Sanchez: “Exactly, plus I have saved money and invested it, so I don’t feel that I come across as though I need ‘this sale’ The Architects dedicated to serving the needs of automobile dealers. to pay rent. I have seen too many sales people through the years blowing their money and living check to check.” Munson: “You could be a great role model for a lot of sales people out there.” “ We had the pleasure of working with Win Sanchez: “I enjoy what I do, I work it Hoffman from Car Store Design to create a new my way, and it has been very successful layout for our Service Department and Customer for me.” Waiting Area. What an unbelievable difference it is going to make!! His creativity and attention Munson: “Why aren’t you a manager?” to detail certainly made the transition easy.“ Sanchez: “I have been offered, but I Mark Pellegrino, Dealer don’t want that job at all. I just like doing Pellegrino Chevrolet my own thing.” Westville, NJ Munson: “Even though you say you only work four days a week, it sounds as if you are working and prospecting all the time?” Car Store Design is a full-service Design + Architecture practice Sanchez: “Actually yes, all the time. I based in Seattle WA, Chapel Hill NC and Ft. Lauderdale FL. have fun with it; everyone is a prospect.” To learn more call David Sova at 866.873.0039, email us at, or visit our web site, www. ca r storede sig Tony Ray Munson is the President of Sales Systems International, Inc. He can be contacted at 866.265.6575, or by email at 4
  4. 4. sales and training solution TimothyTimothy Gilbert By Gilbert Practical Ways to Increase Sales To increase sales vehicle, the more work may be needed. Another suggestion for increasing turns in your service Older model vehicles represent the single is to have a daily schedule for every department a greatest sales opportunity for service vehicle on the lot. Have an advertising service writer can work that exists today. Help customers plan for vehicles based on how long add an additional keep their car in good mechanical they have been on the lot, stepping up hour of billable condition. It is good for them, and it is the advertising as the vehicles age. Havetime to each customer pay repair order. good for you. Look at older vehicles a display plan as to where to put newThe easiest way is to make better use as opportunities. In this regard, do not vehicles and where to move them to giveof the service menu. The concept of a overlook trim opportunities. More wear them maximum exposure as they age.service menu is to show the customer and tear is inevitable as a vehicle competitive the shop is and to Molding, seats, floor mats, door panels Ask the sales people about each vehicleremind the customer of things they may can oxidize, wear down, lose their color in sales meetings, “Why haven’t weneed to have repaired; the basic services or get rips or tears in them. Keeping them sold stock number 12345? Is there aare: tire rotation, alignment, tune up, oil in good condition adds resale value to an problem with that vehicle we need tochange, etc. Use this opportunity to show older vehicle. know about?” They will tell you whatthe customer other options. customers have said or thought about that Another way to increase labor sales is vehicle. If there is a problem fix it andOne approach is the service pyramid. to keep good service history records on then push the vehicle in your advertising.It creates a menu that lists, by mileage, each vehicle. The more you know aboutsuggested service work. For example, at a given vehicle, the more you can help Another way to increase inventory turn15,000 miles, the service pyramid suggests keep that vehicle in good mechanical is to make sure that titles have beenan oil change and alignment. At 30,000 condition. properly and expediently transferred overmiles, add a minor maintenance package, to the dealership. Even after a vehicle haswhich includes a transmission fluid check, One good suggestion per repair order can been sold the deal cannot be closed outbelts, etc. At 50,000, recommend the add volume to the shop and profit to the until the title work has been completed.normal scheduled maintenance work plus dealership. The car may be gone, but the inventorytires. At 60,000 miles, recommend all of has not changed, because the deal has notthe above (if the customer has not had the In your used vehicle operation, the been closed out. This can add days to theregular factory suggested maintenance objective is to turn inventory just a little length of time a vehicle stays in-house.done) plus a timing belt replacement. At faster to achieve a better gross profit on75,000, add brakes. The purpose of the each unit sold. The first and easiest way Next month, we will talk about howservice pyramid is to make it easier for to increase used vehicle inventory turn every sales person can sell just one moreservice writers to suggest additional work. by one day is to get each vehicle on the vehicle each and every month, for new lot one day sooner. The more organized and used sales departments. The mottoAll of this can be adjusted for each the department is on handling trades, the of every sales person should be, ‘one at aspecific shop based on their vehicle more money it can make. The clock starts time and then one more’.histories. Certain makes and models ticking as soon as the customer handshave unique repair histories that each over the keys to their trade-in. It can takeshop should take into account. Have each anywhere from three days to a week to Timothy Gilbert is an Associateservice writer think of additional repair get a vehicle ready for retail. If the used Professor and Chairman of thework that can be added at each interval. car manager can set as a target getting Automotive Marketing Department atSet it up as a contest, and reward them. every vehicle to be retailed on the lot Northwood University Florida Campus. within two days of receipt, it will reduce He can be contacted at 866.274.3792,Try these two additional inventory turn time by at least one day. or by email at First, try using afree (or nominal) vehicle inspection,particularly after a vehicle has exceededits warranty period. A quick 15, 20 or25-point inspection can offer a number ofvalid opportunities for repair work. Forinstance, a quick look under the vehiclemight reveal an exhaust pipe leak, ora hose leak, or possibly a suspensionproblem. Alerting the customer toa potential or existing problem is avaluable service. Even if the inspectionindicates that everything is okay, it letsthe customer know you care, and you aremore interested in their safety.The second point is that the older theseptember 2003 5
  5. 5. sales and training solution BobByBullock Bob Bullock Motivating Your Sales Team All sales teams of normal compensation, an entitlement an NFL game will get your sales force need to be that is due the employee regardless of moving. Graduate the reward program, motivated. performance. Once this pattern of reward and you’ll get even better promotional Methods of is established, it becomes difficult to value. motivation vary. change or terminate. There are other Travel incentivesoptions to motivating your sales team Travel incentives have trophy value. yield better performance at a lower cost.other than cash rewards. Cash is not You can’t mount cash; you can’t show You can’t buy performance nearly as wellnecessarily king. When a customer it off; you can’t photograph it. Cash as you can motivate it. Dedicate three topurchases a car, price is only one of the has only a temporary association with five percent of yearly compensation tofactors that are incorporated into that the reward. You can’t brag about cash, travel incentives and yield the same gainsdecision. A sales person’s motivation but you can brag about an all-inclusive that 15 percent of compensation in cashalso includes multiple factors. sports vacation. The photos will tell the rewards would produce. This amounts story. to a three-fold decrease in spending toAssume that you have addressed the achieve the same results.immediate needs of your employees, a Travel incentivescompetitive salary, good commission provide personal fulÞllment. An additional thought to consider whenstructure, benefits and a healthy working Travel incentives offer guilt-free creating an employee incentive program:environment. If your employees are enjoyment of a reward and can be shared create senior/junior partnerships withinfairly compensated, you are freed up with dependants. Cash is typically the company, pairing or groupingto target their ‘psychic income’ and expended on short-term needs or is laden senior employees with more juniorencourage improved performance. with questions, “How should I spend employees. By linking seasoned and it?” junior employees under the banner of anPsychic income was defined as a person’s incentive program, the competitive anddesire for status, fame, glory, recognition Travel incentives independent approach of a sales teamand attention by psychologist Abraham have promotional appeal. can be focused to bring more junior salesMaslow. Awards like travel and A travel incentive has greater perceived people up the curve.merchandise tap the psychic income of value than cash. A tropical vacationemployees. Cash does not. for two that includes airfare, a luxury Caribbean or Alaskan Cruise withReasons why travel incentives beat cash exotic ports of call, chilled champagneas a motivational tool: in the cabin, plus four star dining, has significantly more appeal than an Bob Bullock is the Sales ManagerTravel incentives equivalent amount of cash. A sports at The Odenza Group. He can behave great motivational power. vacation for two that includes airfare, contacted at 866.873.0026, ext. 225, orCash is almost always viewed as a part hotel and two lower level tickets to by email at 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 Basic Sales Negotiating/Closing/Desking & click on newsletter. Advanced Sales Customer Service For FREE Consultation: 866.429.6844 or 513.932.9526 6
  6. 6. leadership solution Leo Weidner By Leo Weidner Your Feelings-Journal: A Master Tool What if one General. Be completely open, simple tool could What am I feeling today? Why? honest and unrestricted. substantially What is important in my life? Why? Write whatever you are feeling— increase your What area in my life needs more positive or negative. Be totally honest sales and profits, attention? Why? and unrestricted. Don’t worry about reduce your stress What am I most excited about? Why? spelling, grammar or sentence structure;and improve relationships with family, just let it flow.colleagues and customers? There is such Family.a tool, the feelings-journal. This is a How has _________ (name of spouse) For your eyes only.powerful tool thousands of professionals blessed my life? If you have the slightest suspicion thathave used to substantially increase their What are _________’s (name of spouse) someone could somehow get hold ofincome and overall success. strengths? your journal and read it, your brain- What areas of concern, complaints or mind will not allow you to write it in aMany people have a hard time getting in disappointments do I have? completely uncensored manner. Whentouch with and expressing their deepest How have each of my children blessed you write negative feelings about people,emotions. If you’re struggling with the my life? (List each child separately.) places or things, destroy the record so noconcept of writing your feelings, keep What are each of their strengths? one sees it again, not even mind that from a brain science and Are there any areas of concern I shouldpersonal performance standpoint, it is focus on? Why? Develop your skills over of the most powerful activities you Feelings-journaling does not come easilycan engage in. Writing in your feelings- Profession. or naturally to most people—especiallyjournal will reward you with four What am I working toward in my men. But with practice and time, you’llprimary benefits: career? Why? become progressively more comfortable What am I most concerned about today and skilled at it. Be patient, start out1. Crystallize your thoughts. or this week? Why? slow, only five to ten minutes a day, andWork through problems, prepare for How can I improve or take advantage of build up from there.important meetings, discover solutions, opportunities?expand on ideas, gear up for an important Same place/same time.sales pitch—all in advance. Physical health. Set a regular time (preferably first thing How do I feel physically? What can I do in the morning) and a quiet, private2. Cathartic. to improve? Why do I want to? place where you can ponder, think andWrite out worries, negative thoughts and How’s my diet? What can I do to record whatever is on your mind.emotions. With this baggage cleared out, improve it? What will this do for me?your health, success, attitudes, energy Make an appointment.and relationships substantially improve. Spiritual. Feelings-journaling is an appointment How is my relationship with God? with the most important person in your3. Communication. What can I do to improve it? life, you. If you ‘try to find the time’;In selling, being able to share feelings How will this help me? you’ll likely never do it. Make thisand show empathy for customers is a Is there a recent, or not so recent, appointment a maximum priority. Thehuge advantage. Those who master this spiritual experience I should record? remarkable benefits in every aspect oftalent become top producers. Feelings- your personal, family and business lifejournaling allows you to practice and Social. will amaze you.develop these skills. How can I improve my interaction with people? Leo Weidner is the Chairman of4. Inspiration. Do I have personality traits that are LifeBalance Institute. He can beFeelings-journaling opens up extensive negatively impacting my effectiveness contacted at 866.429.6826, or by emailneural pathways to the right side of with customers or colleagues? at, or visityour brain significantly increasing your How can I change these?, insight and intuition, makingyou more successful in your personal This is just a sample checklist. Makeand business life. your own list according to what’s going on in your life. If you’re trying to workFeelings-journal checklist. out how to pitch a new car or product,Feelings-journaling is a learned skill. how to improve profits, how to deal withIn the beginning, many people can’t a partner or employee, put it on yourthink of anything to write. Develop a checklist, and you’ll be amazed at thefeelings-journal checklist. Reviewing solutions that come to you. Obviously,this list will ignite feelings and start you you don’t write about every item on “We get resultswriting. Make a list of the things in yourlife you are most concerned about, most the checklist at once. Use the checklist or you don’t pay!” to stimulate your feelings and help youdesirous to achieve or most grateful for. start writing. 877.209.0562Your checklist could look something www.DealerDirectMedia.comlike this: Remember five simple principles:september 2003 7
  7. 7. sales and training solution SteveSteve Hiatt By Hiatt The New Guy: Experience and Results In the last two higher sales levels. As is often the case, multiple streams of leads with Jason to issues we have he needs help in some selling skills and ensure success. covered the attitudes. In skills, we must help him interviewing, isolate objections and then close until The areas of prospecting and follow- hiring and training his tongue bleeds. The attitude area is up are important for both sales people. of two ‘New Guys’ only in realizing that the chance to make After all, a warm prospect is easier toat my dealership. Some of you have the sale is right now and that customers close. Since Bryan, needs to improve hiseven called to talk to them, thanks for need that gentle nudge to make the closing techniques, wouldn’t it be easierthe support. decision immediately. to practice on warm prospects?At this point, we have had two full The second new guy, Jason, has been Some of the niches for the New Guys aremonths of selling time to evaluate steadily improving. His objection to introduce themselves to local banksboth sales people. Their results are our handling skills are improving rapidly, and credit unions so that the loan officersnumber one indicator of success. To date, and he attempts a close even if it doesn’t will send them the leads on people whothe first New Guy is in single digits, and seem like the perfect time, and his are getting pre-approved. They are alsothe second New Guy is already in the results are very good. We really need to going to work with tow companies andhigh teens. With this in mind, we made a help develop his client base by coaching body shops for other leads. Often afew changes to our approach. him in prospecting and follow-up. The tow truck driver or body shop knows majority of his current sales are from when someone needs their car or truckThe first new guy, Bryan, has been walk-in traffic, and if it starts to die, so replaced the soonest, because they are attransferred to one of our used vehicle will his sales. Most dealerships would the scene, or the car is towed to their lot.stores, for several reasons. The single let someone like this ‘just be left alone’.most important reason is because The difficulty with that approach is, it Prospecting that has worked best for usthe staff to manager ratio there is the won’t prevent slumps. And, too many is going out and seeing the people theysmallest. We feel he can get more one slumps create turnover. Since turnover have already sold at their workplace.on one time there to help direct him to means start over, we need to create Who doesn’t like to talk cars? Especially when they are getting paid to do it. Customers actually seem very receptive to this. Continued role-playing for both of the Log 200-500% more opportunities! New Guys is high on the list. Sharpening skills in an environment where there is coaching, and there isn’t a sale at risk, Leader in Showroom Traffic, takes the pressure off and increases the Lead Management, odds of being successful in the next live and CRM Software situation. Track all outgoing real-time showroom & desking control I hope these three articles have given phone activity you a way to compare your process and internet lead tracking system results against ours. As a dealership, you can screen, lead, guide, motivate, recruit, 2-way active DMS integration hire and role-play until you are blue in complete in-store training the face, and in the end, the individual Minimize data entry you hire has to take the ball and run with with license scanner drivers license scan, worksheets it. Some sales people have that killer instinct or edge that allows them to read & credit bureaus people and know right when to close, with the tenacity to continue when the odds are against them. Look for these track more traits, and encourage them whenever you see them. Recap what they do right, The Higher Gear Group, Inc. and focus on those skills. bring back Hoffman Estates, IL 60195 more tel 866.873.0029 fax 847.310.3196 close Steve Hiatt is the General Sales Manager of Hiatt Pontiac GMC, Hiatt more call for a FREE consultation and demonstration Outlet and Hiatt of Auburn. He can be contacted at 866.265.5616, or by email at 8
  8. 8. marketing solution Jeff Margaretten By Jeff Margaretten Profit From Your Architecture With a Customer Friendly Lot “What can I do to Let the cars do the talking. look for help. Then, have someone there spruce up my lot, From a buying perspective, the customer immediately to answer their questions. make it more fun has already decided to visit your to walk around?” dealership to buy a car or at least shop Flanders and Patch Ford, winner of In July, we for one. The vehicle is their goal. The a 2000 Ford Boston Region Goldendiscussed the short loop, now let’s talk sales person is someone who can assist Shovel Award, is a perfect example ofabout what can be done now that we’ve them with that goal. From a selling allowing their architecture to createeliminated it. perspective, the customer is the goal. buying opportunities. A vehicle display Sexy vehicles on display by the front and customer-waiting patio, completeLet’s begin thinking of simple ways to door will have customers out of their with landscaping and park benches, sitscreate an outdoor shopping environment car and touching the product. As the directly between their customer parkingthat is festive, yet frugal; organized, but buying opportunity builds, they will and showroom. It has doubled the sizenot stoic; visually tempting and still easy wonder about which additional upgrades of their showroom, enhanced their frontto plow snow during the winter. and colors you may have in stock. Your entrance and serves as a consolation area. product will encourage them to find and On beautiful days, service customersCustomer’s needs are simple; less is talk to a sales person on their own. prefer to sit outside. When they see themore. Less confusion, more freedom, cars, they start talking to the sales team.less obstacles, more power. Give them Invisible sales team. It’s a very customer friendly situation.what they want, and they will gladly walk This is the most common mistake madearound and spend time with you. by the auto industry. The car lot is the Inviting customers to voluntarily park, only retail environment where you will shop and talk (at their own pace) isCreate a pedestrian environment. find the sales people waiting outside the key to eliminating frustration andMuch of the auto-buying experience is to greet a customer the second they nervousness about the sale. Design yourfocused on walking the lot. Make the see them pull on the lot. Remember, property to force and entice customersexperience more enjoyable, and people in a buying environment the vehicle is to park before they look and then lookwill stay longer than anticipated. Start the goal; in a selling environment the before they talk. This is the way toby separating the rows of back-to-back customer is the goal. Eager sales people create a pedestrian friendly environmentcars by four or five feet, then paint the at the front door are looking for ups. that encourages browsing, promotesasphalt yellow. Lay a row of brick pavers Yes, they are there to help the customer, conversation and increases sales volume.into the asphalt to create a pedestrian but from the customer’s perspective Employ these simple site layout ideas,crosswalk and viewing aisle. A shade all that sales person wants to do is sell and soon, you too will profit from yourtree, with a park bench offers relief on them something. Dealers have set up architecture.a sunny day. A gazebo in the middle of this method because it has been so easya larger lot, especially on a nice day, for customers to take the short loop andcan be a quiet place to look at brochures avoid the sale. An intimidated customeramong the product or an extra closing is more likely to be cautious and less Jeff Margaretten is the Managingbooth needed during peek time. Place a trusting, making it harder for your sales Principal of P3 Automotive. He can becooler of lemonade inside, and you have team. A ready customer seeks assistance. contacted at 866.856.6791, or by emaila chance to converse. Give the customer the opportunity to at 2003 9
  9. 9. sales tips with David Thomas DavidByThomas David Thomas Improve Your Closing Ratio When do you with. I always promised my customer an if they like you and if they are inclined to start to close your enjoyable buying experience, and I lived buy from you. What does all this have to customer? up to the task. I started doing every deal do with the closing? It’s simple. If they with personality, not with discounting or don’t like you, they probably won’t buy sales tricks. If you do this, you will close from you, or they will be much more more deals and make more money. difficult to close. Put more energy into A. During the test drive. the first few minutes when you meet, and B. During the walk-around. Here are some suggested tips: it will make your test drive and product C. Standing on the showroom floor. presentation much more effective. D. When your customer starts to • Be aware of the first impression leave. that you make. You either relax your Now that you have fine-tuned your E. When your boss tells you. customer or scare them immediately. greeting, work on your closing. Turn F. None of the above. • Smile – even when you’re on the what the customer fears most into phone. A smile disarms and puts the most enjoyable part of the buyingThe correct answer is F. You should start everyone at ease. experience. How do you do this in anclosing a deal in the first three seconds • Be enthusiastic. It’s contagious. If efficient, profitable, timely and friendlyafter you greet a new customer at the you’re excited, they are excited. manner?dealership. No, you’re not asking for the • Be knowledgeable. Know thesale in the first few seconds, but you are answers to the questions your Your goal is to: maintain gross, minimizestarting to build a relationship and initiate customer asks. any negotiating, motivate an immediaterapport. It’s really simple. People want to • Be user friendly. It should be easy buying decision.(and will) buy from someone they like. and pleasurable to do business withI didn’t sell over 3,000 cars because I you. Focus on a relaxing, friendly closingwas the best sales person. I sold a lot of • Dress professionally. Your environment where the customer trulycars because I made extreme efforts to appearance will effect their overall perceives a win-win outcome. This canbe likable and to be easy to do business impression of you and your product. be the easiest and most enjoyable part • Watch your body language. If of selling a vehicle if you let it. A typical you look stressed, your customer will closing could sound like this: become stressed. • Make eye contact. Show your Sales associate: (Manufacturer’s name) customer the respect that they has built an enjoyable car to drive. How deserve. was your test drive? • Be fun and exciting. People like to laugh and be entertained. Customer: Very nice. • Be sure to connect. People know if you really care about their needs. Sales associate: Our service department • Ask questions with positive has made it easy and enjoyable to service answers. How are you? Isn’t it a your new car. You met your personal beautiful morning? advisor, correct? Heard the buzz? Find out for yourself what it’s all about. CarChip is “a useful tool for the professional,” says one service manager. • Nod your head while you listen. “Technicians dealing with intermittent issues can program CarChip to Instill positive feelings. Customer: Yes, he is great. monitor suspect circuits, and then return the vehicle to the customer.” It’s affordable, so there’s no need for large deposits. And once Some auto dealers do an outstanding Sales associate: This (vehicle make and your customers find out about it, they may very well want one for themselves! Attractive packaging and full-color point-of-sale display job of making customers (your guests) model) is enjoyable to drive. We’ve made help make the sale—adding to YOUR profits! feel at home and comfortable in the first it enjoyable to service as well. My mission Monitor any 4 out of 23 possible engine parameters including: few seconds of their arrival. Remember is to make it enjoyable to buy. I pledge to • RPM & engine load • Fuel trim • Intake air temp to make everyone feel like a guest in keep it simple and straightforward. • Throttle position • Fuel pressure • Battery voltage • Timing advance • Intake manifold pressure • Air flow rate YOUR home. How do you greet your • Fuel system status • Coolant temp • Oxygen sensor voltage friends when they arrive at your home Customer: Fantastic. Plus trouble codes, freeze-frame sensor readings, speed, distance, for a visit? and accels & decels. Up to 300 hours of trip data—all for just $179! If you truly strive to produce an enjoyable Plugs instantly into OBDII port. Download to PC for detailed analysis and graphing. Customers shouldn’t have to and don’t buying experience for your customers, be ner want to walk through a crowd of sales a good communicator, be straightforward Ask how YOU can become Win e e re d people in a ‘smoke fest’ on the front and keep it simple, you will be surprised an authorized reseller! Engin duct Bestew Pro N porch of the dealership. If you must how many customers just say ‘yes’. smoke, do it away from customer areas. David Thomas is the Owner of Subaru TM ™AUS0310 I remind you of this because you would be amazed at the impact that your initial of Dallas. He can be contacted Davis Instruments 3465 Diablo Ave, Hayward, CA 94545 greeting has on the closing process. at 866.429.6803, or by email at 866.297.3152 • Customers decide in a matter of seconds 10
  10. 10. sales and training solution RobByMudd Rob Mudd Five Principles of Effective Advertising Jack Welch, the principles into your advertising for The Expectancy Theory says, “People former CEO of increased success. Here are five principles experience what they expect to experience General Electric, for an effective advertising message: and see what they expect to see.” Your says in, The G.E. message must manage this. Way, that business 1. Attention getting headline is pretty simple. 2. Simply stated, true value The presentation of these five principlesHis three keys to success are: simplicity, 3. Urgency can vary greatly, hard sell to soft sell;consistency, repetition. Implement 4. Repeat the offer it doesn’t really matter as long as thesethese three keys and the following five 5. Ask for the order primary elements stay consistent. It is like baking two cakes, vanilla and chocolate; they taste different, but the basic ingredients stay the same (sugar, flour and eggs). The same holds true for your message, they may sound different, but the basics remain the same. Once you adhere to the principles of creating your message, let your target demographic hear what you have to say and continually remind them. Each day the average person is hit with over 3,200 different messages. Your message has to make people want to hear what you have to say. Clarity and simplicity is comforting in today’s very complicated world. Simplify everything. Last year, 16.8 million new vehicles and 43 million used vehicles were purchased. In the US, there are 180 million licensed drivers. By dividing 59.8 million vehicles by 180 million people, divided by 12 months, you come up with an estimated 2.63 percent. This is the percentage of the market looking to buy a vehicle during any given month. The only challenge is that you do not know their names. This is why you have to stay consistent, and keep the message simple. Don’t waste your valuable advertising message with confusion. Get to the point, tell them what you have to sell and why they need to buy it from you, and ask them to come buy it now. You have to stay consistent with your advertising message. You need to keep your message out there looking for that 2.63 percent. Keep your message simple, consistent and repetitious. And, always keep these five principles in mind to make your advertising most effective. Next month, we will address implementing the advanced equity program into your advertising message. Rob Mudd is the Senior Vice President of The Mudd Group. He can be contacted at 877.804.3485, or by email at 12
  11. 11. f&i solution GeorgeGeorge Jackson By Jackson Maximize Your Menu Presentation In your F&I should disclose the base payment department, you without coverage (because no coverage have to ensure is always an option), disclose term, APR that you are and WAC (with approved credit). utilizing yourmenu form to the fullest. When you The first plan on the menu shouldhave an effective menu form, you include all of the products and eachwill be able to give an effective menu product should be verbally disclosed,presentation. A menu presentation is fully and completely. This is wherenot just reviewing the form. It is a the presentation begins and the needpresentation philosophy. If you want is generated for each product. Forto maximize your menu presentation, example, stating to the customer thatconsider the following for your menu he/she will get credit life protectionlayout: in the plan is not enough. It should be disclosed in the following manner, “YouProducts. will also receive credit life protection.Every product offered in the finance This will pay off the loan in the eventoffice should be on the menu. Deciding of your death and leave your estate withthe order of the products can be somewhat a free and clear title to the vehicle. Thisdifficult. Factors such as profitability, coverage is not rated by your age, health,penetration, cost and dealer participation job or hobbies, and there is no physical(reinsurance, retros, etc.) have to be required. There is no waiting period forconsidered. The decisions on how to coverage, and it pays in addition to anylay out your products on the menu form other coverage you may already have.”should be made jointly by the dealer, When disclosing the first plan, don’t sellGM and F&I manager. Another option and don’t close. Let the customer listenthat has to be evaluated is how many without your opinions.products you should actually offer in theF&I department. Having a menu makes As you proceed from plan to plan,the F&I presentation more efficient, but simply tell the customer what he/shehaving to many products available could receives, what has changed, what he/shebecome difficult. A good number to offer forfeits from the previous plan and howis five. Even with the efficiency that a that affects them. An example wouldmenu form adds to the presentation, if be, “This plan is much like the previousyou review too many products, your plan. Your service contract is now forcustomer may lose interest. five years rather than six, and you forfeit the disability coverage. This means thatPlans. if you did become sick or injured andFour is the most common and most unable to work, the monthly paymentsproductive number of plans to offer would still be your responsibility.” Onceon your menu form. You want your the presentation is complete, ask thecustomers to feel as if they have been customer if he/she has any questions,given enough options to choose a plan direct them to the payment options andthat will fit them. then ask, “Which plan would work best for you?”Visuals.Finally, when creating your menu, make Putting emphasis on these areas is thesure you have pictures and/or icons for surest and quickest way to increase youreach product. This adds to the visual F&I income and maximize your menueffect of the menu and puts less emphasis presentation.on the text. It makes it look cleaner andwill give it a more professional andcurrent look. George Jackson is the Director ofPresentation. F&I Training for American Financial &Now that the form is in place, a Automotive Services, Inc. He can beconsistent and professional delivery is a contacted at 866.280.0301, or by emailmust. Your menu form and presentation at 2003 13
  12. 12. sales and training solution Don Elliott By Don Elliott Wholesale Auto Auction Basics: Do It Right Understanding the the order of the auction immediately after yellow light indicate caution and buyers rules of an auction the sale. are advised to listen for announcements can make a trip about defects or mechanical history to an auction on Once approved as a buyer, the auctions issues. Again, it is the seller’s sale day produce will provide a bidding number specific responsibility to disclose any defects and maximum results. to that buyer representative. Keeping to make sure that such defects are notedWholesale auto auction rules vary from the bid number easy to spot by the on the bill of sale. Cars sold under a redstate to state and at each individual auctioneer assures that a bid will be light are sold as is. A red light means thatlocation. However, basic regulations are taken. The auctioneer in the lane is the there is no arbitration available with theconsistent at most auctions. ultimate judge of the successful bidder. possible exception of frame damage or Auction law generally provides that cracked engine blocks. Older cars andFor first time auction buyers, it is when the auctioneer ‘drops the hammer’ high mileage cars are typically soldimperative that your dealership is and announces ‘sold’, the sale contract under the red light, although, they may beproperly registered before auction is made. otherwise mechanically day. Wholesale auto auctionsstipulate that all transactions are for Generally, the auctioneer’s responsibility If the seller does not have the vehiclelicensed automobile dealers only. Retail is to determine the highest bid price that title at the auction at the time of sale, ancustomers and minors are not allowed. A is acceptable to the seller of each unit additional light, usually noted as ‘T/A’copy of a dealership’s license and a credit that crosses the block. It is the seller’s (title attached), will alert the buyer thatapplication are minimum requirements to responsibility to represent the condition, they may have to wait for the title afterpurchase at auction. history, model, year and equipment to the the sale. Auctions generally will not best of their knowledge when the car is accept vehicles that are non-titled, titlesEach dealership is responsible for offered for sale. Any misrepresentation that are marked ‘void’ or titles withoutidentifying its buying representative could result in arbitration. provisions for an odometer statement.on its application. Many states requirethat the representative must have an Auctions use a selling light system to To make a bid, it is necessary to catchindividual wholesale automobile license. alert bidders about the general condition the auctioneer’s attention and have them of the vehicles being sold. The meaning acknowledge the bid. Often, auctioneersCredit limits for each dealership are behind each light varies somewhat will use ringmen to help spot bidders.established before the sale day. Auctions between auctions. In general, a green The ringmen will alert the auctioneer ofexpect dealers to provide proper payment light means that the vehicle is represented a buyer’s intent to the end of the sale. Any dealership by the selling dealer to be mechanicallyauthorized as a ‘cash only’ buyer must sound and will pass some form of test As the high bidder, the next step for theprovide cash or a certified check paid to drive by the buyer. Vehicles sold under a buyer is to collect the block slip or bill of sale from the block clerk, usually stationed in the auction lane. Block slips Taylor Techniques, Inc. can be exchanged in the checkout area for gate passes and titles upon completion of payment arrangements. At all auctions, buyers must identify each vehicle as AUTOMOTIVE SALES AND MANAGEMENT TRAINING paid in full, usually with a gate pass at the security office before the car can be • Taylor Techniques helped us sell 198 removed from the property. vehicles in the first month, with an all- Auctions provide many post sale time gross profit record. services, including transportation, • The next 3 consecutive months we financing, post-sale reconditioning and inspections. These services allow beat that record. buyers and sellers alike to get the most • Last month we sold 223 vehicles from their auction experience. When combined with the auction rules and with the highest grosses ever. Fran Taylor regulations, these services can mean is President the difference between a satisfactory or Taylor Techniques, you guys are the best! and CEO of Taylor Techniques, Inc. outstanding day at the auction. Michael Hoops, General Manager He can be contacted at Marine Chevrolet, Jacksonville, NC Don Elliott is the Vice President of Call Today! 866 873 0041 Marketing and Business Development at ADESA Corporations. He can be contacted at 866.429.6848, or by email at 14
  13. 13. marketing solution Dennis McDonough By Dennis McDonough Sales From the Internet: Protect Your Computers There are many 2. Use a firewall: No good network Once your system has been updated, you worms and viruses administrator would connect their can go to your control panel, and click out today that could companies network to the Internet on the Automatic updates icon. In the potentially cause without a firewall. Do not connect settings area the third item will schedule you computer your computer to an Internet service downloading and installation of new problems. Be provider without one? updates for you.aware of these notices and how toprotect against them. Think about a firewall being the Not all worms or viruses are made for watchdog that keeps things away Windows computers. Windows seemsMany notices about computer viruses from your computer. A firewall can to be the number one target. Check withthat people receive are not legitimate. be a hardware device or software your operating system developer forYou can confirm a notice at CERT. The on the PC. There are many good their latest protection system.CERT Coordination Center is a renown firewalls to choose from today at aand respected information source. CERT minor cost or free. Take the time to see that all of these tasksis located at the Software Engineering are complete on your computers. YourInstitute, a federally funded research and 3. Run the Windows automatic Internet connection will be faster, anddevelopment center at Carnegie Mellon update manager: This is a free your computers will be more reliableUniversity in Pittsburgh, Pennsylvania. service from Microsoft. If you are and available for you to use.CERT can be found on the web at http: running Windows 98, NT, ME, 2000// CERTs website contains or XP this service can be set up toinformation that ranges from protecting work for you automatically. This isyour computers against potential installed by running the Windows Dennis McDonough is a Consultant forproblems, solutions to current problems update icon in your start menu. If it He can be contacted atand predicting future problems. is not there, open Internet Explorer, 877.354.1998, ext 202, or by email at select the tools menu and select, or visitBlaster is the latest worm, the next wave Windows update. harassment for computers withoutcurrent Anti-Virus software or thereleased critical updates. The amazingthing about the worms or viruses that arebeing released on the web is that they PROFIT...FROMcan easily be stopped. Virus creators arenot computer geniuses that are creating YOURsomething really new. They watch fordiscoveries that others make as security ARCHITECTUREholes in the operating systems. Thehackers take that information and set up Over 300 new and renovateda program to propagate itself out to other dealerships designed acrosscomputers. Kits are even available for USA and Canadadownload; it isn’t difficult. On-site Facility DesignWorms and viruses cost all computer Surveyingusers time and money. Computer Feasibility Studiessystems would be much faster if they Inclusive Design Meetings withdid not have to run these extra software management teamprograms. Just remember, Blaster is notthe first and will not be the last program Increased CSI scores and profitthat disrupts the Internet. per transaction Consulting to localYou can help stop the next threat now by architects andtaking a few simple steps: contractors Design - Build 1. Run anti-virus software: Software Services is available for download, and a praxis3 company some excellent programs are free. Installation is just the beginning. Set up fulltime protection, including 866.856.6791 email. Schedule an automated update process, and scan your system on at least a weekly basis.september 2003 15
  14. 14. feature solution SarahSarah Gauss By Gauss Maximizing Profits on Every DealDealerships have great potential to determine his/her ability to pay. important, once this information isgenerate a lot of profits. If you look entered, it should go into a retrievableclose, you might see a few places where Finally, during the negotiation step, database. Otherwise, the manager willyour potential profits are slipping away. the manager calculates the financial waste valuable time re-typing the same variables of the deal to produce options information over and over.One of these places is unknowingly, that are satisfactory to both the customeryet commonly, found at the sales desk. and the dealership. You should therefore look for anWithout the ability to write-up each integrated product that easily shares/sale quickly and efficiently, time is The challenge for the manager is to have swaps information gathered during theunnecessarily spent. Without easy access all the right tools during each of these write-up, qualification and negotiationto customer qualification data, time may steps in order to construct and close the steps. Taking this even further, anybe wasted on a sale that won’t happen. best deal. information gathered during the initialWithout being able to offer a customer meet and greet and test drive should alsoacceptable sales and/or leasing options, Tools that help managers be accessible, resulting in even less of athe potential buyer might just opt to walk construct more proÞtable deals. need to re-input data.out the door. Software technology has been developed to help managers better manage the steps 2. Ability to compare a wideHow can you stop this from occurring described in a seamless fashion. The variety of lenders (captive, non-captive).and maximize your profits? The solution resulting efficiencies can lead to bigger About 90 percent of the customersis to incorporate easy-to-use technology dealer profits. walking into a showroom are goingthat helps you manage and control to make their purchase decision basedthe key steps during the vehicle sales A number of products are available on payment affordability. To ensure atransaction. to help the dealership control and sale is made, it is essential to be able manage deal write-up, qualification and to show customers that a payment planUnderstanding the three negotiation. is indeed possible. By having the rightkey steps prior to the close. tools available, dealerships can offerThere are multiple recognized steps What to look for in desking solutions. leasing alternatives to increase the oddsin a dealership’s overall sales process, When selecting the technology solution of closing a deal.lets focus on the three related to the that is right for your dealership, takeworking deal: write-up, qualification and these key criteria into consideration: The right desking solution for yournegotiation. dealership should provide the sales 1. Captures data accurately the first manager with the ability to compareDuring the write-up step, or ‘penciling time numerous programs with speed andthe deal’, the sales representative gathers 2. Ability to compare a wide variety accuracy. Most dealers have relationshipspertinent information about both the of lenders (captive, non-captive) with an average of five lenders to addresscustomer and the selected vehicle. If 3. Includes an up-to-date leasing consumer vehicle financing needs. Eachthe customer has a vehicle for trade, component lender has multiple lease programsinformation on this car should be 4. Utilizes an ASP (Application according to term, tier, vehicle andrecorded as well. Service Provider) option other criteria. They also have their own 5. Part of a fully integrated, rules for excessive mileage charges,After the write-up, the qualification seamless solution acquisition fees, lease termination andstep ensures that the selected vehicle 6. Easy to use and learn calculating the dealer reserve.accurately meets the prospect’s financialneeds. During this step, the manager 1. Capture data accurately. In the past, the sales manager typicallyreviews the write-up information and The information captured during the referred to books and bulletins and hand-with the prospect’s written consent, write-up and qualification steps needs calculated each permutation of the dealruns a credit report on the prospect to to be accurate and complete. Just as in the F&I system to find the best fit for 16
  15. 15. both consumer and dealer. It can be time a provider that already maintains leasing with F&I all from the same location orconsuming and is prone to error. information for both new and used screen. vehicles from one centralized locationTechnology has automated the process that can be accessed by simply logging Please be very careful when consideringto not only save time but also increase on to the site. the possibility of using a new technologyaccuracy while also providing additional vendor. Not all systems easily integrateoptions to structure the best deal. The Several desking solutions available with competitive systems. If you aren’tright technology solution should take today not only offer leasing information cautious and verify its compatibility,the sales manager through the following but also deliver them in a simple online you may find yourself playing refereesimple three-step negotiation process format. These products allow the between several vendors and/or tryingright on their desktop system: dealership to compare terms, mileage to reconfigure your complex technology and lease programs from numerous system yourself. • Vehicle identification: The lenders over the web instantly. manager can configure the vehicle or 6. Easy to use and learn. retrieve one from inventory. If a deal 4. Utilizes an ASP option. The right product needs to be accessible has already been entered, the deal Many technology solutions available by all employees and easy to learn. Some can be instantly recalled. to dealerships today run on an ASP of the easiest to use products feature rich • Gathering and comparing lender deployment configuration. This means web-enabled tools. These provide a info: Displays the best programs that that the application runs on a centralized graphic user interface, drop-down menus meet the requirements. web server in a secure data center with and simple point and click commands. • Bank detail: Provides a worksheet 24/7 support. ASP can allow a dealer to allowing the manager to review the focus on the core business and leaves the Ease of use is particularly important when deal details and work out any final day-to-day technological management the sales manager is constructing several numbers. responsibilities to the service provider. deals simultaneously. It is critical to be able to switch between deals without theWith this information, the manager 5. Part of a fully worry of losing critical information.can quickly quote lease and balloon integrated, seamless payments using accurate The gathering of customer data and An investment thatlender information. They can also analyzing both lending and leasing quickly pays for itself.generate dealer-closing lease vs. buy information are just one part of a By asking the right questions andcomparisons. dealership’s fully integrated technology knowing what to look for, you’ll be solution package. This data should be able to select the right technologyWhen choosing the right technology just as easily accessible to the dealer solution that’s best for your dealership.solution for your dealership, look for as other desking and F&I information, You will find that you can operate moreone that provides the ability to compare including: efficiently, capture lost sale opportunitiesmultiple vehicle options. This will and help plug any profitability leaks. Inallow the opportunity to encourage • Vehicle inventory information due time, the only flow you’ll see is theup-selling, helping you maximize your • Electronic credit approval positive one that leads to your increasedfront-end gross. The solution must also • Electronic lending approval revenue stream.have additional options for structuring • Automated business formsthe deal, so the back-end gross can be • Additional business officemaximized as well. functions Sarah Gauss is the Product Manager3. Includes up-to-date Þnance data. If configured correctly, a dealer should for Front-End Applications at ADPTo eliminate the need for the manager to have the ability to access credit bureaus, Dealer Services. She can be contactedmonitor constantly fluctuating interest pull information from the DMS, look at 866.441.2785, or by email atrates, it is recommended that you choose up lending institutions and interface 2003 17