A SPECIAL ISSUE NADA SPECIAL ISSUE NADA SPECIAL ISSUE NADA SPECIAL ISSUE NADA SPECIA
756 South 1st Street PRSRT STD
Suite 202 US POSTAGE
Louisville, KY 40202 PAID
PERMIT NO 879
a division of Systems Marketing, Inc. www.autosuccess.biz
• BZ Results 3124
BZ Results is a digital marketing & training company that has a great new system that helps dealers sell & service more vehicles proÞtably.
TOP 10 BZ’s clients include United Auto Group, Group 1, Herb Chambers, Red McCombs, Sheehy, Paul Miller, Larry Miller, Courtesy Chevrolet,
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• J&L Marketing 4731
Established in 1991, J&L Marketing is without equal when comparing automotive direct marketing companies. Their philosophy is simple - there are only three ways to
grow your dealership: 1) Increase your number of customers, 2) Increase your average gross per deal and 3) Increase the frequency of repurchase – get more residual
value out of each customer. With a customer base of over 6,000 dealers and managers nationwide their ground-breaking J&L Marketing Growth Strategy™ is producing
staggering results and has eliminated the number one challenge for most dealerships - trafÞc.
• Dealix 5415
In 2005, Dealix is expanding their quality and service initiatives, continuing to help dealers sell more cars, more efÞciently. Their combined efforts with The Cobalt Group will
bring an even more dynamic product to their customers to increase sales and help improve dealership efÞciencies. Dealix has been rated the number one lead provider in
studies by J.D. Power and the Dotcominsider. Their goal is to continue to win over customers with high quality leads and superior service. The Dealix Quality Team enhanced
their lead scrubbing and call veriÞcation technologies to ensure customers receive leads only from the most serious car buyers. Dealix is committed to provide even better
one-on-one service and has expanded it’s Lead Acquisition Network, adding hundreds more of the best auto sites on the web.
• Autobase 4819
Autobase, Inc. has provided the automotive retail market with premier customer relationship management (CRM) solutions since 1988. Autobase Sales Center™, the ßagship
of the Autobase suite, is now in its sixth generation of development, boasting 17 years of successful implementation in dealerships of every demographic. Over 15,000 auto
professionals go to work every day and use Sales Center™ to sell more cars. Newly-released and already manufacturer-endorsed for it’s innovative approach to business
development, the Autobase Loyalty Center™ is the most recent addition to their suite of solutions. Their rich history, strong reputation, comprehensive industry knowledge,
and pioneering work in feature-rich CRM and BDC technology have long impacted the bottom line for proactive dealers nationwide.
• TimeHighway.com 4430
TimeHighway.com is the premier, on-line solution for service department appointment scheduling, allowing dealership customers to make a conÞrmed service appointment
24 hours a day, seven days a week. BeneÞts to the dealership include: replacing telephone-based scheduling with Internet technology that enhances the effectiveness
and customer satisfaction of the dealership, reduces in-bound telephone calls and drives trafÞc to the dealer’s website. Customers prefer the ease and convenience of
the Internet to do their banking, shopping, make travel arrangements, etc. and now with TimeHighway.com, they can schedule their service appointments online, no more
waiting on hold to make an appointment.
• The Joe Verde Group 931
JOE VERDE • Your Training Partner Since 1985, the Joe Verde Group has been helping dealerships improve their sales and gross by providing the best sales and sales
management training in the automobile business. Joe Verde’s up-to-date sales training helps dealerships implement effective sales training that works to build a solid sales
team and long term, satisÞed customer base. Joe’s management training addresses today’s challenges and tomorrow’s needs by helping dealers build top performing
management teams. The bottom line… the Joe Verde Group provides a dealership with clear-cut solutions that boost their sales, proÞts and customer satisfaction.
• ProResponse 3058
ProResponse, Inc. CRM with proven results, represents nearly 300 dealers nationwide. Their services are geared toward total showroom control with ProScan® Touch
Screen driver’s license reader, prospect tracking (phone, ßoor and Internet), and sold customer follow-up for Þve years. ProResponse is a service company assisting dealers
each day with database management, data cleansing, data mining, and effective target marketing. They are e-mail enabled and FTC compliant, running prospects and
customers against the “Do Not Call” list daily. They provide on-site training and monthly service visits “In Your Dealership”. Their programs are also written in Spanish and
French. They seamlessly integrate with Who’s Calling, Call Source, Call Bright, Call Command, EPencil and many others.
• American Auto Exchange 5755
Founded in 2001, American Auto Exchange is revolutionizing the way dealers conduct business by Þnally assembling all the pieces necessary to running a streamlined, high
tech used car operation. Through the use of the aaXchange tools, dealers are dramatically improving the way they operate their used car departments.
American Auto Exchange works with thousands of dealerships across the United States who have chosen to utilize the American Auto Exchange Real Time Vehicle Trading
Network, the aaXchange proprietary Vehicle Management System (VMS) and a new integrated intelligent vehicle launch product with Ebay.
• Ultimate Warranty Corp. 1411
Ultimate Warranty Corp. provides leading-edge service contracts and ancillary F&I products. More than 7,000 dealers have recognized the advantages and have beneÞted
from selling Ultimate Warranty Corp. products. Ultimate’s package has proven that it can propel its client base to the front of the pack in terms of quality, proÞtability,
compliance, customer retention, and CSI. Stop by the booth, and Ultimate Warranty Corp.can show you how they are making a great thing even better in 2005. Ultimate
Warranty Corp. has some great new things to offer to its clients at no additional cost. Ultimate Warranty can truly show you how to do more with less.
• The WolÞngton Group 527
The WolÞngton Group produces high performance sales events on behalf of new car dealerships across the country, with no outsourcing or subcontractors. The Þrm maintains long
term relationships with dealerships, providing marketing territories and strategies that help The WolÞngton Group dealers outperform their markets. A WolÞngton Group produced
event brings an atmosphere of fun and excitement to the dealership, creating a great buying experience for the consumer and a positive selling experience for the dealer’s sales team.
Harry WolÞngton, President, provides his insight and experience to auto dealerships through his six sales teams. “Being a small company, we are more focused on each individual
event. Our dealers get an attention to detail from our staff paralleled by none.” It’s this philosophy that has earned The WolÞngton Group a spot in this year’s “Best of the Best”
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ProResponse is the only system I have ever used where
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Available in Spanish www.ProResponse.com
sf special feature
Has the Drive to Succeed
Thousands of young difference to ensure this type of violence
men and women who stops in America in his lifetime.
will be graduating
high school or Orrin left behind his successful car
college this spring dealership, which he had owned for 10
are looking forward years. He focused every personal asset, and
to the ultimate graduation present. Mom all of his savings to launch his grassroots
and Dad have promised a trip to the local crime prevention program, Be Someone
dealership to pick out their ﬁrst automobile Inc. He targets crime where it begins, in
upon graduation. the inner cities of our country disguised as
poverty, sickness and hopelessness.
There are, however, thousands more young
adults who will never realize that American Orrin has developed several mentoring
dream. Their lives are starkly different from programs that teach children life mastery
mainstream America. Many at-risk children skills, using chess as a metaphor. Using
living in the inner cities of our country his personal resources, dedication and CNN, Orrin and his life changing programs
have no hope of ever ﬁnishing school, passion for his dream, he has touched the have been featured on Fox News, CNN,
or attending college based on the current lives of more than 15,000 children and their TBS Superstation, as well as having been
deplorable circumstances in which they families. His programs have been taught in highlighted with a full-page article in USA
ﬁnd themselves. more than 30 schools in ﬁve states. Today. He has been interviewed and his
programs featured in countless media and
One man has vowed to change this grim Dramatic changes occur in the lives of news outlets.
prediction by dedicating his life to the these children when someone who is as
fulﬁllment of his personal dream. Orrin powerful a mentor as Orrin Hudson appears Although the recipient of numerous
Hudson, a leading nationally recognized in their lives. They immediately respond to community service and leadership awards,
chess champion has turned his dream of his charismatic personality and energetic Orrin remains humble and thankful for
mentoring children through the game of teaching style. Upon completion of Orrin’s the opportunity to serve his community.
chess into a life-long pursuit. classes, reported improvements include His personal reward is in the achievement
extended concentration time, improved of the children throughout the country
In 2001, Orrin was shocked, as was the rest grades, more positive social skills and currently enrolled in his programs. He has
of the country, to hear of the incident in concern for others. Students exhibit the recently received the 2004 Martin Luther
Queens, New York in which a young black ability to think more clearly and apply King Jr. Community Service Award, 2004
youth terrorized the patrons of Wendy’s problem solving skills. They develop a TBS Superstation Pathﬁnders Award
Restaurant. He ultimately herded several clearer understanding of consequences and for Education, and 2004 Atlanta Braves
of them into the cooler and shot them in the ability to recognize patterns to increase Leadership Award, among others. As a
the head for a paltry sum of $2,000. As a forward thinking. testament to his selﬂess achievements, he
former U.S. Air Force and Alabama State is currently the subject of an upcoming
Trooper veteran, Orrin vowed to make a Dubbed the “Piped Piper of Positivity” by screenplay expected to be released next year.
What does Orrin Hudson have? Heart. His that results. If they can’t ﬁnd a way to win and share with your employees and their
passion for learning, and burning concern at life, we all lose,” Orrin Hudson said. families the powerful success mastery
for the students he mentors, keeps him skills that he has taught to thousands. He is
working long and hard even when his If Orrin and Be Someone, Inc can reach a dynamic personal coach.
personal resources are depleted. He needs them before its too late ... we are all
our support. winners. To learn more about Be Someone Inc. please
visit the Web site at www.besomeone.org.
As an author, trainer, coach, educator and “It is not just about the game of chess. It is To donate, sponsor children or sponsor a
motivational speaker, Orrin has amassed about the game of life, and learning how to school in your hometown, please contact
some hefty accolades. win at every level.” Orrin Hudson Orrin. Be Someone Inc. is a non-proﬁt
“I salute you on your quest to develop To thank you for your consideration and Orrin Hudson can be contacted
yourself in order to make a difference in help with his programs, Orrin has agreed at 800.901.3057, or by e-mail at
others’ lives. We are kindred souls in that I, to appear at your dealership for no charge email@example.com.
too, have always had an insatiable hunger
for knowledge and excellence. Live with
Passion!” Anthony Robbins, No. 1 best
DEALERS MUST BE
selling author, motivational speaker
“I am extremely impressed with your
organization, especially since our youth
are desperately in need of leadership and
guidance. I admire your zeal, and your
enthusiasm is contagious.” Brian Tracy
No. 1 best selling author, motivational
“Orrin C. Hudson is destined to inspire
See why over 100 dealers nationwide have
our youth in a positive and extraordinary INCREASED SALES MORE THAN 30% IN
way. I like his tough-minded optimism and
charisma.” Mark Victor Hansen No. 1 LESS THAN 90 DAYS WITH TELEVISION!
best selling author, motivational speaker
We produce nearly 4,000 commercials
“I enthusiastically endorse the work of a year from our studios. We give you
Orrin C. Hudson, founder and president
of Be Someone Inc. and all that he does
unlimited, high quality television campaigns
for our children.” Jane Fonda, actress, and promotions FREE. With computerized
director media buying technology, we buy television as
much as 30%-40% more effectively than any
“Orrin, you amazed me with your ability
to get results!” Jack Canﬁeld, author,
media buyer in the nation and give you
motivational speaker UNLIMITED TV CAMPAIGNS
You can partner with Orrin and Be
Someone Inc. Through your tax-deductible Call for a FREE demo tape and information.
donation you can sponsor a child or several
children today by offering scholarships to
the program. You will positively change
the life of a child forever. By partnering Larry John Wright, Inc.
with Be Someone Inc., you will be ﬁghting
crime, illiteracy and hopelessness for
thousands of American children.
“America’s Premier Automotive Advertising Agency”
“The future of our country and our youth
depends on what we do today. If we ignore
this generation and allow them to continue
to travel their current path through inner
city poverty and despair, we are also
responsible for the crime and desperation
january 2005 11
sts ms ls ﬁs lr
sales and training solution
Are You an IMPACT Player
How can we become P = Passion modeling and our passion and our actions.
IMPACT players Passion is doing what makes us feel the We must enjoy our journey, not just the
in our companies, most alive!!! We must develop a passion arrival. Along the way we must remind
organizations, for what we do. This passion will get us out ourselves to have fun, loosen up and laugh
c h u r c h e s , of bed in the morning when we don’t feel out loud. We shouldn’t take ourselves too
communities, and like it. Passion sets ﬁre to discouragement. seriously. Remember: Angels ﬂy because
families? Here are a few ideas: Passion creates excitement in those around they take themselves lightly.
us. If you light yourself with passion,
I = Intensity people will come from miles around to T = Trust
We must be focused on our goals and watch you burn. We must learn to trust ourselves. Too often
dedicated to put forth the effort necessary we are waiting for all the lights to turn
to achieve those goals. Intensity doesn’t A = Action green before we leave home. There is an
mean being so serious you aren’t enjoying By turning passion into action, we will adage that states: trust your gut. We should
the process. It does mean being serious surely make an impact! Oftentimes, this learn to trust our feelings.
enough to overcome obstacles that stand in is the biggest challenge we face - putting
the way. Remember: you are either intense our passion into action. There are times By becoming an IMPACT player, all those
… or you are past tense! when we don’t feel like being impact around you will beneﬁt. Go out there today
players. Our passion is at a low level, and and knock’ em alive!
M = Model the correct behavior the feelings have gone. The key is this: We
Yogi Berra once said you could observe must “act” our way into feeling and not
a lot by watching. We should observe wait to “feel” our way into acting. Zig Ziglar is the chairman of the board of
positive role models and “steal” the Ziglar Training Systems in Dallas, TX. He
effective aspects of them. We should then C = Comedy relief can be contacted at 866.873.0026, or by
model that behavior on a consistent basis. We must enjoy our intensity and our e-mail at firstname.lastname@example.org.
sts ms ls ﬁs lr
sales and training solution
10 Steps to CRM Success
A successful CRM 4. Build value into every customer record through the cracks any longer.
implementation will with processes
produce a tremendous You want your CRM feature-rich, and 7. Execute a strategic plan of business
return on investment. make sure those features work within every day.
Let’s examine 10 the framework of the sales process. Your Aim at nothing and you’ll be sure to hit it
fundamental steps to sales people will be able to take an up every time. CRM provides each sales person
achieving CRM success. and move through the sales process with with a daily business plan based on clear,
ease. Real-time Web-based services concise rules for every type of customer
1. Present to your staff the beneÞts of (such as reverse lookup technology and (appointments, leads, prospects, owners,
using CRM compliance with the Do Not Call Registry) renewals, etc.). It’s an automated list of
Sales people will save time because will enhance customer records. In addition calls to be made plus letters and e-mails to
worksheets, appraisals, credit apps and add to basic contact info, the customer record be sent. CRM ties into your phone system
ons are automatically and professionally will show all prospect history, all sales to measure outbound call compliance and
laser-printed. They will be able to move history (including gross proﬁt), all service to report on the calls your sales associates
through the sales process effectively and history, all after-sale history, a complete log. All of this data is analyzed in a report
with greater ease. It provides a simple, customer proﬁle, all credit information, format, allowing you to interactively view
but powerful, ﬁrst-pencil tool, credit complaint management (keep track of their each customer record.
bureau processing, inventory look-up, and concerns), all e-mail history and the DMS
appraisal management with Blackbook customer number (to create real-time data 8. Clearly identify customer types and sub-
lookup. Sales people will enjoy automatic synchronization). Finally, the process will types within your CRM
follow up, as if each had his or her own conclude with a complete analysis of all Unsold customers cannot be grouped
personal assistant who printed daily letters, data through interactive reporting. together. A customer who was unable to
sent daily e-mails, and strategically built secure ﬁnancing is different than the unsold
a plan of business 365 days a year. It will 5. Seek the immediate beneÞts of a real- customer who told his or her sales person
offer real-time integration with your DMS, time environment that he or she bought elsewhere. A be-back
Internet leads and phone leads. You’ll Reap the beneﬁts of a real-time environment that is ready to buy in days is different than
get total buy-in of your sales staff. When in which people, process and data are a prospect that is ready to buy in months.
sales people properly use CRM as a tool to managed. At any given time, your managers With a more detailed approach, you will sell
success, they all sell more cars, which will are able to see which customers (and sales more cars.
increase their income. associates) are in the dealership. At a glance
they are able to see today’s appointments, 9. Appreciate and acknowledge personal
2. Attack your database on a daily basis ups, prospecting/owner calls, tomorrow’s lead production (PLP)
Managers can easily create targeted appointments and sold units, both for today Your CRM can clearly categorize prospects
advertising campaigns. They now engage and the month. Managers are able to tell found through a sales person’s personal
in a daily review of the ﬂoor trafﬁc as who is responsible for the numbers (who is networking. It tracks referrals received
well as those deals that can be saved. doing their job and who isn’t). First-pencil during calls to sold customers. Teaching
Sales people log in every day to ﬁnd a ﬁgures are seen at the tower the moment your sales force to produce these prospects
planner full of opportunities from today’s they are created. On any deal not closed, will increase revenue in all departments.
appointments to prospecting for referrals a manager is prompted to follow up with Reward your sales staff for their own
and closing renewal business. Produce a call to save the deal. Now put this kind personal lead production.
results every day. of power into the hands of your BDC, and
you’ll see your call center, sales team, 10. Create a data collection process to
3. Prepare and service team work together in ways capture 100 percent of customer information
Your CRM provider is able to efﬁciently you never could outside of a real-time Successful CRM has less to do with cutting-
pull every DMS record possible, for both environment. edge features and more to do with how
sales and service. If a customer’s name and those features are designed to ﬁt your sales
number has been recorded somewhere at 6. Implement a speciÞc process for pipeline process. Attention to process is the main
some point, that customer will end up in management component a successful CRM incorporates
your CRM. These records are scrubbed Every customer record has value. When and the main reason why many solutions
against the National Change of Address sales people reach a barrier with a succeed in dealerships.
(NCOA) database to ensure that your data customer a trigger prompts a manager to
Bryan Anderson is the founder and
is accurate. Then each record is matched step in. When managed in a dynamic and president of Autobase Inc. He can be
with a current sales person and a plan for interactive process, dealerships save money contacted at 800.350.9683, or by e-mail at
follow-up. in a short amount of time. No one slips email@example.com.
january 2005 13
sts ms ls ﬁs lr AdamDeGraide
On Becoming a Servant Leader
How do you deﬁne servant leader is aiming to go beyond success in servant leadership depends on
leadership? Ken success and social signiﬁcance and how clearly values are deﬁned, ordered and
Blanchard, co-author approaches leadership as an act of service lived by the leader. Living out these values
of “The One-Minute from the perspective of what we can give and core beliefs is where most leaders and
Manager”, “Raving rather than what we can get. Sounds easy, dealerships can get into trouble. You cannot
Fans” and now the but leadership for the purpose of serving just talk the talk, you must walk the walk.
“The Servant Leader”, deﬁnes leadership others will fail if we fall prey to false pride Effective implementation requires turning
as “an inﬂuence process – any time you are and fear. the traditional hierarchy of a dealership
trying to inﬂuence the thoughts and actions upside down so that the customers and
of others toward goal accomplishment in Close examination of failed leadership the folks on the front line are at the top of
either their personal or professional life, efforts usually reveals a self-serving leader the organization with all of the tools and
you are engaging in leadership.” It makes who has been drawn by pride into taking too resources needed to do their job, while the
sense to measure our success as a leader by much credit, showing off and demanding leaders serve the needs of the employees;
our ability to shape what others think, do attention or by fear that compels a person helping them to accomplish the vision and
and say as they try and ﬁnd meaning and to protect him or herself, hide behind a direction of the dealership.
their purpose in the world. It can also help title, intimidate others, discourage honest
to ask if we are being selﬂess or selﬁsh. feedback and ultimately become known as Putting it into action
The answer to this question compels us to a control freak. In preparing your heart it Once you feel and understand the concepts,
search our inner motivations and measure is important to treat others as if they are as are you really willing to change your heart,
our actions and habits in light of the goal of important as we are. Why? We treat people your mind and your behavior to become a
being a better servant leader. In this article the way that we see them, and if we see better servant leader? Once you step out it
are some ideas for preparing our hearts, them as inferior we will treat them that is important to step up and stay the course.
bringing clarity to our minds and applying way. When we treat everyone as if he or Change is a given, it will happen. Your
and putting into action servant leader she were valuable and worthy of our time, organization will adapt or die, and you as a
principles within our dealerships, families respect and attention, what do you think person will either grow or go. By becoming
and communities. would happen in our relationships? Do unto “other focused,” we can truly begin to lead
others as you would have done unto you is the right way and others will want to follow
the Golden Rule, and it works. out of faith and hope instead of fear and
Prepare your Cleaning out the mind
manipulation. It’s been said that if life is all
about you, than you is all you’ll ever have.
heart, clear Garbage in - garbage out. It’s time for us In order to work at taming an addiction to
out your mind
to take out the trash, wash out the cans. personal pride it helps to ask some hard
When we allow our minds to be ﬁlled with questions:
and put it into so much junk, we truly need to ﬂush out
the garbage and bring in the fresh air of • Do I think of myself more often
action. As a balanced thinking. All great leaders have a than I think of others?
speciﬁc leadership point of view and belief • Have I developed a habit of giving?
system that deﬁnes how they see their role • Can I participate in a group without
you can and their relationships with those they seek taking charge?
to inﬂuence. Our belief system is shaped • Can I enjoy the successes of others
accomplish by our past experiences, our attitudes and or does everything have to be about
feelings, our perceptions, our capacity for me?
critical thinking and our education. What • Do I use plain, honest speech,
we think is impacted by what we feed our letting “yes” be yes and “no” be no?
mind. To make a positive impact on what • Do I do what I ask others to do?
Preparing the heart we think, it helps to surround ourselves with
Regardless of your title and position in the positive people and positive experiences. Prepare your heart, clear out your mind and
dealership, any one can be a leader. It has put it into action. As a servant leader, you
nothing to do with your job and everything You are who you hang with, never can accomplish anything.
to do with your character and your forget that. As a result, it helps to ﬁnd a
intent. Whether you’re the title clerk, the role model who has the vision to do the
receptionist, a sales person, a desk manager right thing and, from an implementation Adam DeGraide is an owner of
or the dealer, people in the dealership can standpoint, has the ability to do things BZResults.com. He can be contacted at
feel it when we have a mission and we’re right. Values are also important because 800.526.9804, or by e-mail at
seeking to lead for a higher purpose. The they deﬁne what you stand for, and true firstname.lastname@example.org.
Our consultants will help
your dealership achieve:
• Industry Leading
• Sustainable Sales
• Maximum, Compliant
• Power Negotiation
• Accountability and
Give Ziegler and
his team a call!
You want warm and fuzzy? We got
your warm and fuzzy right here.
Ziegler Supersystems • www.ZieglerSuperSystems.com • 800-726-0510
Call today to speak to a Ziegler Representative
In-Store Consulting - Management Seminars - Video Sales Training - Support Products
sts ms ls ﬁs lr
Almost $600,000 to the Bottom Line
An effective inventory management and inventory wholesale time data from NADA, Kelley Blue Book,
management system acquisition and liquidation. Black Book, MMR, CarFax, AutoCheck,
coupled with real-time DealerBasics and other services, many times
productivity tools, Most of the companies (vendors), who have within the same screen.
based on accurate entered the industry of pre-owned vehicle
market conditions management, aspire to meet the demand of A trade desk tool is utilized to assist those
and real-time pricing, will beneﬁt your those three areas with the ongoing feedback with multiple dealerships. This tool matches
organization because it gives the dealership from dealerships. The goal in mind is to surpluses and needs between dealers in
management team and the sales management beneﬁt multiple aspects of used vehicle a group that can be managed and traded
team the knowledge needed to properly operations and encourage the repetitive by a single group manager. You need
evaluate deals scientiﬁcally with little or no management processes for every used accountable key people operating the
guesswork. vehicle. management system, working with dealer
groups to customize backend fulﬁllment
Software systems have been coupled with A signiﬁcant aspect of used vehicle processes, including title processing and
the correct level of training and support so operations involves customer appraisals and transport notiﬁcations, to make the trade
that these new productivity tools are simple trades. Trade-ins account for approximately process efﬁcient.
to use, easy to implement and based on real- 60 percent of the pre-owned automobiles
time data in an ever-changing market. retailed by a dealership. There is also a mechanism for dealers to send
alerts out to other dealers for a vehicle they
Management systems for auto parts are a When the dealership knows at the time of are appraising or have in inventory with a
standard business practice at dealerships. the vehicle appraisal that this model tends requested buy-now price. Dealers receiving
It make sense to manage millions of dollars to retail for a strong proﬁt, or that another these alerts can counter with a different price
in pre-owned vehicle inventory as well. dealership within his group could use that for the vehicle or request to purchase the
Wouldn’t you agree there is a need? vehicle, the dealer can offer the potential vehicle at the buy-now price. This is ideal
customer a premium for their trade-in and for dealers to shop potential or recent trades
There are sophisticated systems for managing subsequently make another car sale – at a to a network of dealers.
pre-owned inventory. All systems have good proﬁt.
similar goals: eliminate wholesale loss and Some systems help to compile the
unproductive inventory, achieve consistent Use of these systems and processes can dealership ideal inventory model and gives
under-30-day turns, real-time inventory improve a dealership’s ratio from trading ideal and actual inventory calculations,
management control at the dealership level, for two out of 10 vehicles to almost ﬁve recommendations, aging reports, retail vs.
maintain proper inventory mix, provide out of 10. For an average sized dealership, wholesale reports and a quick-glance at a
instantaneous buy/sell recommendations, this could mean almost 30 additional new or dealership’s sales history with all makes and
provide more scientiﬁc appraisal tools with used car sales in a month, or approximately models. This makes the selection process
real market values and increased trade $45,000 in additional front and back-end for trades and the appraisal process more of
opportunities. gross proﬁt. a predictable, accountable process.
The biggest challenge for the used car Vehicle inventory management systems will There are tools that provide a trading network
manger can be adopting and embracing help the dealer and the used car manager that matches inventory needs between
change. Robert Kennedy said, “Progress is determine individual marketing strategies. dealers, thus creating a real-time channel
good but change is its motivator and change Some systems provide consistent inventory for dealers to shop vehicles over the network
has enemies.” The improvements of a used recommendations for each vehicle being while a trade is being evaluated. This can
vehicle management system will increase evaluated, as well as data that will help replace the system whereby the used car
proﬁts in all departments. make better decisions for each car deal. manager calls other used car managers, one
The consistent use of these tools will guide at a time, to see if they would purchase the
A dealership that instituted one of these managers to stock what will sell best at that vehicle, call wholesalers or purchase the
systems experienced the following. particular dealership. Consistent compliance trade unit at a conservative amount and
Before implementation, retail pre-owned with the inventory recommendations will later take the vehicle to an auction. Used car
vehicle volume was 97, after 116. Before result in increases of gross proﬁt and an managers are able to identify and purchase
implementation, the average retail pre- improvement in turn time of about 15 vehicles they know will retail well before a
owned front end was $953, after $1,220. percent. vehicle ages, therefore reducing wholesale
Before implementation, the retail pre-owned losses.
turn time was 25 days, after 21.5. This These systems provide daily inventory
translated into an average increase in front- management tools, such as book-out sheets,
end proﬁt of more than $49,000 – almost inventory recommendations, past history,
$600,000 to the bottom line that was laying vehicle condition history, book values and Bruce Thompson is the chief executive
dormant at the dealership. appraisal sheets. The appraisal portion ofÞcer and founder of American Auto
provides tools for dealers to track appraisal Exchange. He can be contacted at
Three main areas of pre-owned operations performance and trade rates and to work 800.901.3017, or by e-mail at
are appraisals and trade-ins, inventory deals with customers. It incorporates real- email@example.com.
sts ms ls ﬁs lr
sales and training solution
Silence is Golden
Sales people need test all accessories, i.e., windshield wipers, • How many miles on the current
to bring out the true radio, heater, air conditioning, power seats, tires?
condition of the all power windows, etc. Record all defects. • Is this car equipped with a spare tire
customer’s trade- and a jack?
in professionally Next, drive the car with the customer and • Does the car have an environmental
because by not doing check for any mechanical problems. Helpful protection package?
so, we are leaving gross proﬁt on the table hint: Always ask the customer, “What is • Do you have both sets of keys and
due to over-allowing on trade-ins. that noise?” The customer will always the key fobs?
respond with an explanation. Make one
This can be corrected with a silent trade quick trip around the block. Once back at “And if you had to rate you car, Mr. or
evaluation (condition, not value). The the dealership, park the trade-in as close as Ms. customer, on a scale of one to 10, with
process starts after a quality demonstration possible to the vehicle they are buying. This 10 being absolutely perfect, showroom
drive and commitment to buy if all terms is a great opportunity to show the difference condition, how would you rate your car?”
are agreeable. between old and new. Most people respond between six and eight.
Where would it rate on the scale?
Once the commitment to buy has been
established, proceed to your trade This whole In consideration of this rating, the buyer has
evaluation. Ask the customer if there is three prices in mind for their trade-in:
a vehicle they would like to sell to the
dealership. “Help me, help you, sell your
vehicle to ABC Motors. Show me.” less than 15 to 1. Asking price.
2. Liking price.
With clipboard in hand and a trade
20 minutes and 3. Taking price.
evaluation form attached, start by having produces huge Through this process, the sales person
the customer read the mileage on his or her
vehicle. Record it on the form. No words returns. It also has can bring the customer from an asking
price, which always equates to a huge
from you, but you may want to do the wince
and ﬂinch (a very effective tool). Also, ask
a positive effect over-allowance based on actual cash value
of the trade, all the way to a taking price.
on yours and the
him or her to activate the hood release while The difference can be as much as $1,000
they’re in position. Proceed to the front to $2,000. This is the difference between
of the vehicle and lift the hood. Record a little or no gross to a much more fair and
any oil leaks, over spray, or worn belts
(Silence, touch and feel). Proceed to the scores. reasonable gross. It has the ability to take
a lot of the confrontation out of negotiation
front bumper, touch any scratches, dents, when it is time to present trade ﬁgures.
cracked headlights, etc., and record them. Then, bring the customer inside and sit him
Move to the passenger side, recording tire or her down in the negotiation area. This A customer’s perception can be summed up
wear (at this point, you may want to use the is the point where we ask them some key this way: I’m going to pay this much for the
“penny-tire wear gauge”). Hold a penny so questions: car I’m buying. I am going to get this much
you can slip it between the tread. If you can for my trade-in; all I have got to do is pay
see the top of Abe Lincoln’s head, the tire • Do you have the title? the difference.
wear is beyond the point where it will pass • Is this a salvaged title?
state inspection. Touch every dent, scratch, • Is the title free and clear? It is the sales person’s job to increase the
or defect and record them. At this point, wait • Lien holder – pay off? perceived value of the car they are buying.
for stories on how each dent happened. • Has the vehicle ever had any (Walk-around, November article) and
collision damage? If yes, what type respectfully decrease the perceived value of
Move to the back of the car and at this of damage and what was the cost of their trade-in. This is where the gross and
point, ask for the keys. Open the trunk, the repairs? your commission are.
hatchback, etc. Check for the spare tire jack, • Has the vehicle had any mechanical
look for any ﬂuid bottles, i.e., brake ﬂuid, repairs? If yes, what type of repairs? This whole process takes less than 15 to
transmission ﬂuid, oil, etc. Pick up each • Was the vehicle purchased new? 20 minutes and produces huge returns. It
bottle, hold it close to your ear and shake it, • Has the vehicle ever been smoked also has a positive effect on yours and the
looking for half full containers. Move to the in? dealership’s CSI scores.
driver’s side, also recording any defects, and • Has it been used for towing?
get in and ask your customer to do the same. • What is the date of the last tune-up? Good Selling!
Go over the interior thoroughly, checking • What was the date of the last oil
for wear and tear, cleanliness, etc. Record change?
side glass and windshield condition. • Has the oil been changed every Anthony Hall is a training consultant
4,000 miles? at Ziegler Supersystems. He can be
While in the driver’s seat, start the vehicle • Do you have all the required contacted at 800.610.9047, or by e-mail at
and turn on every piece of equipment and maintenance history? firstname.lastname@example.org.
18 successful solutions at www.autosuccess.biz
sts ms ls ﬁs lr
sales and training solution
How to Identify and Sell to
the Entrepreneur Personality
If you could connect take the upper hand in situations and have
with your prospective an innate ability to convince others to see
buyer, would it help things their way. Outwitting, outdoing, or
get the sale? Would overpowering them can prove to be a tall
you want to know task, as they usually have good answers for
how to speciﬁcally everything and are not the least bit afraid to
sell a customer who is outspoken and speak up. They are win-driven, competitive
demanding? What if you could create and and determined to stay in control of
pique genuine interest in a shopper who situations. They will probably relate well
seems unmotivated? Have you ever made to you if you seem equally enterprising and
a sale when a prospect said he or she was self-assured; they respect and appreciate
just looking? your competitive drive.
This article is the ﬁrst in a three-part While all entrepreneur personalities share
series dealing with how different buyer the same general characteristics and
personalities respond to various sales display overall behavioral patterns that are
presentations. You’ll learn how to read your similar, it’s important to know that there
prospect, detect subtle buying cues, and are different levels of each deﬁning trait.
tailor your presentation to trigger a positive Some entrepreneurs have exceedingly
response from even your most challenging strong and determined personalities. These
customers. entrepreneurs can be charming, but they
can also be outwardly bold and impatient.
Part 1: How to identify and sell to the If your customer seems highly aggressive
Entrepreneur personality and antsy, be prepared to be a little less
Part 2: How to identify and sell to the forceful when talking business, so as to
Technician personality avoid bumping heads and thus triggering
Part 3: Will the Accommodator an unwelcome and, perhaps, deal-breaking,
personality ever, in your lifetime, confrontation. Consider these strategies
actually buy a car? when working with an entrepreneur:
Entrepreneur personalities will usually be • End your sales pitch with a sentence
talkative and fast-paced. They’ll also be like: “Of course, it’s up to you whether
friendly. True entrepreneurs like to make you want to take advantage of this
their own decisions, and they may seem special, because you have to make that
to have a very clear idea of which vehicles decision”
they do, and do not, want to buy. In terms
of dollars and cents, do not hesitate to • Make his or her ideas seem like
negotiate with them. your own. For example, point out an
obviously positive feature about the
Some entrepreneurs might seem a little vehicle, something with which the
demanding, but they can also soften those prospect is sure to agree. Once he or
demands when they want to, by putting she does, get him or her to elaborate on
their excellent social skills to good use. it and then say something like: “You’re
They might make some small talk, establish exactly right! I never thought of it that
easy rapport, so their own business way.”
objectives can be more readily attained.
They are typically conﬁdent, assertive and Virtually all entrepreneurs can identify with
fast-paced individuals. You will probably people who are driven to win. Talk about
not ﬁnd an entrepreneur personality asking your own successes; if you met or exceeded
for a lot of help, putting himself/herself your goal last month, work that into the
down or waiting long for an answer to a conversation.
question. If you notice that your customer
seems self-sufﬁcient, conﬁdent, talkative,
quick and very proactive, you are probably
Carol Martin is a senior consultant
dealing with an entrepreneur personality. with The Omnia Group. She can be
contacted at 800.601.3216, or by e-mail at
Entrepreneurs are leaders. They instinctively email@example.com.
january 2005 19
sts ms ls ﬁs lr
marketing solution ScottJoseph
Discover How to Eliminate Your
Dealership’s ‘TrafÞc in the Door’ Challenges
I ask dealers and businesses, is one of the least understood training, which leads to better
general managers and most underutilized facets of business customer education.
all the time, “What today. • Track all advertisements and
is your biggest measure the ROI. Know exactly
challenge in selling In these competitive times, the importance what is working and, more
cars today?” Almost of marketing is even greater than before. importantly, what is not.
always their answer is “trafﬁc.” The more Why? In this wildly unpredictable and
I study the challenge of generating more changing marketplace, dealerships must 2. Increase customer retention by:
trafﬁc and staying ahead in competitive have an edge or they will not survive • Communicating frequently with
times, the more I am convinced it boils – they’ll lose their share of market to their customers.
down to one principle – marketing. As competitors. • Provide compelling reasons as to
we start 2005, now’s the time for you to why they should come back in
tune up your marketing – to make sure The simple fundamentals of marketing – the and buy another vehicle with
you’re getting new customers coming in, obvious marketing techniques that make a special offers before they are
old customers coming back and customers lot of money – are the most powerful. After announced to the general public.
purchasing more often. all, you can do all sorts of advertising, but
if you ignore the basics, the money just will 3. Increase closing rate by:
Marketing is the main spring of every not come easily. • Increase the sales skills with
business. After all, marketing is the science training.
of getting people to come in and test drive Does your dealership(s) have an actual • Develop an advertising strategy
your cars and have them try your parts and marketing plan? There are only three ways that allows your sales staff the
service departments. It persuades them to to grow your business; 1) sell to more opportunity to qualify the wants
come back again and again and induces customers, 2) increase your gross average and needs of customers up front.
them to purchase at higher grosses when and 3) increase how often customers spend • Offer great deals for the customer.
they do come back. money with you. What is your growth • Educate customers by giving
strategy to accomplish these goals? “reasons why” they should buy
Maximize A real marketing growth strategy
incorporates advertising, sales and your To increase your gross averages, focus on:
the potential corporate identity. Maximize the potential
of the marketing plan by working backward
• Use direct response ads that
attract buyers who negotiate less (it
of the – start from sales. For any marketing plan
to work the advertising element must align
can be done).
• Increase the sales skills.
marketing with the way your dealership sells cars. The
class war between marketing and sales is a
• Managers start every deal.
• Use direct response ads that
plan by primary reason for program failure. There
are direct response advertising strategies
increase the percentage of people
who talk numbers (once again, it can
that can help support your sales team – even be done).
make them better.
To increase how often customers spend
To increase sales, focus on the following: money with you, focus on:
– start from
1. Increasing your phone trafﬁc, new • Use direct response techniques
and used ﬂoor trafﬁc, parts and service to create compelling reasons
business by: why customers should come in
• Aggressively marketing products and buy another vehicle from you
and services by using direct right now.
response advertising rather than the • Run special events such
Marketing is not just advertising. normal institutional advertising. as “clearance and new model
It incorporates sales, advertising, your • Run special sales events. introduction” events, and so on.
business identity and a host of other • Develop a unique selling • Special offers for sales.
ingredients that are less obvious. Without proposition and a corporate • Monthly parts and service
marketing, you lose customers. And identity. This identity must be offers to induce frequency.
without customers, you lose business. recognizable in all communications
and convey your unique selling Scott Joseph is the president of J&L
Marketing can make the difference between proposition. Marketing Inc. He can be contacted
the life and death of your dealership. Yet, • Increase the perceived value of at 866.429.6846, or by e-mail at
marketing, which is the prime mover of the product through better sales firstname.lastname@example.org.
Service Manager Uncovers $10,500
of Hidden Net Proﬁt per Month...
(details on Þle)
With the help of KEEPS, we increased our net proÞt
after attending the
Finding & Keeping Hidden
by $104,287 in one year. We did this with the same
number of techs and less customer pay RO’s than
the previous year.
Sam Lilly, Fixed Operations Director
Royal Chevrolet, Lynchburg, VA
Net ProÞts in Your Service
Prior to KEEPS, we barely made $100,000 net Department WORKSHOP
proÞt combined with 6 Service Departments. Using
the structured processes and highly motivational
pay plans of the KEEPS system our combined Discover powerful new tools for getting
net proÞt should be over $1,000,000 for 2004. Our
customer retention and repeat business has never
your Service Department to the next level.
Rusty Holcomb, Service Director
A small sample of what you will learn:
Page Auto Group, Richmond, VA
! Eight speciÞc techniques to increase your
I have spent 10+ years working with Þxed operations customer pay effective labor rate by $4.50
trainers out of Birmingham, AL. I learned more in to $6.50 per hour while improving CSI
this workshop than in those 10 years combined.
Dan Folk, Service Director ! Six techniques to design and build highly
Friendly Ford, Monroe, MI proÞtable service menus
! “R.O.A.M.S.” the ultimate technology for
achieving the next level of PROFITABILITY
Go to our website Call Today for a FREE Service
for complete workshop Department Finiancial Analysis Tool
dates and locations.
This one day workshop comes with a 100% money back guarantee
fs feature solution
2005 eDealers of the Year
Our January issue is dedicated to honoring the forefront of digital marketing, enabling to establish an Internet marketing strategy.
the Top 10 eDealers of 2005. The them to sell 50 to 800 units every single This person typically winds up spending
benchmark for consideration for winning month. Successful dealers recognize and a lot of time updating and maintaining a
this year’s award is results as measured appreciate the fact that 70 percent to 80 nice-looking, information rich site that is
by volume of Internet sales and by how percent of all customers who purchase a largely ineffective and when taken to the
well the dealers use the Internet and digital new or used vehicle use the Web at some extreme, these are the dealers who abandon
marketing to promote all of their proﬁt point in the buying process. Some dealers the Internet entirely. In contrast, our Top 10
centers: new, used, F&I, service, parts, etc. have even scrapped their conventional dealers tell us about personal involvement
Our goal was to seek out the dealers who advertising budget and dropped their cost in selecting the right vendors and deﬁning
are the best at using this marketing medium per sale from $300+ to less than $150 an Internet sales strategy and vision with
to generate huge increases in proﬁt for their per sale. In recognition of these and other their entire leadership teams. Some of the
dealerships. We considered the number of outstanding achievements, we devote this areas dealers consider when establishing
rooftops, the size of the dealership or dealer article to recognizing the Top 10 eDealers their strategy and vision are: technology,
group, their markets, the brands they carry of 2005 and we will share some of the best marketing, process, people, pricing and
and their Internet proﬁts as a percentage practices that have positioned them at the measurement.
of their total proﬁts. Here’s the detailed top in their ﬁeld.
criteria used to select the winners: Establishing Your Strategy & Vision by
Internet Strategy & Vision: Seeking to Answer 10 Questions:
• Proﬁt generated as a result of We found that commitment starts with Technology: How do we separate the hype
Internet marketing the dealer principle himself and cascades from what works? What vendors deliver
• New and used vehicle sales volume throughout the rest of the organization a clear return on investment and what
as a result of Internet marketing in direct proportion to dealer’s level of technology can successfully automate parts
• F&I and subprime proﬁts as a result commitment. For the award winners, of the process?
of Internet marketing the vision doesn’t start with the General
• Online service and parts business Manager or the Internet Director or Marketing: What are some best practices
for using the Web and digital marketing to
2005 eDealers of the Winners!
Congratulations, eDealer of the Year Award Year
attract more customers to the dealership?
What is the best use of my advertising
budget and how much should be devoted to
Dealership Location Website digital marketing?
Paragon Honda & Acura New York, NY www.ParagonCars.com
Dick Hannah New York, NY www.DickHannah.com Process: How can a dealer ﬁne-tune
Ralph Schomp Automotive New York, NY www.Schomp.com his process to ensure that more of his
Tasca Automotive Group Providence, RI wwwTasca.com
opportunities are being transformed into
Herb Chambers Boston, MA www.HerbChambers.com
Red McCombs San Antonio, CA www.RedMcCombs.com
Earnhardt Auto Centers Tempe, AZ www.Earnhardt.com
Courtesy Chevrolet Phoenix, AZ www.HouseofCourtesy.com People: What are the secrets to lowering
Dave Smith Motors Kellogg, ID www.DaveSmithMotors.com employee turnover? What are some best
Sheehy Virginia/DC www.Sheehy.com practices for recruiting, hiring and training
the right team?
We learned a lot about what determines another member of the leadership team;
a dealer’s success with using the Web to for the winners, commitment to an Internet Pricing: When, where and how do the
generate increased sales and service proﬁts. strategy and vision begins with the most successful dealers address pricing
We found some commonalities among dealer himself. A common mistake some on the Internet? What will work for my
the winners and some truly effective best dealerships make is to dedicate or hire a store and what are some best practices for
practices that have propelled the winners to technology person and leave it to him or her maintaining a fair proﬁt?