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“Golf swings begin and end in the mind.” pg.8




                                                                            .biz
                                                                            August 2003




Don Elliott

Auctions Make the Market




                                                                       How to Hire
                                                        the Best Person for the Job
                                                                          Back to the
                                                                Basics of Advertising
  PERMIT NO 879
  LOUISVILLE KY
                                                        You Can Be a Top Performer
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                                                              Managers Evaluation:
   US POSTAGE
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                                 756 South 1st Street

                                                        Successful Leadership, Part 1
ZIEGLER ASKS…




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                                                                                                        I N S I D E




                                                                                                                                                          driventeam operation
                                                                                                                                                        uccessrevenue automobil
 4 Eliminate Enemies of Success and Happiness




                                                                                                                                                                solutions
                                                                                                                                                                                 Brian Tracy
 5 The Hustle                                                                                                                                                                 David Thomas
 6 How to Hire the Best Person for the Job                                                                                                                                    Pam Holloway




                                                                                                                                                                                                        profitprofessional
 7 No Stress Selling                                                                                                                                                             Fran Taylor
 8 Don’t Hit It at the Target                                                                                                                                                Brian Manzella




                                                                                                                                                                  sales
10 Recruiting Better Sales People                                                                                                                                          Tony Ray Munson
11 Back to the Basics of Advertising                                                                                                                                              Rob Mudd
12 Is Your Life Dying From Making a Living                                                                                                                                     Leo Weidner
13 You Can Be a Top Performer                                                                                                                                                   Mark Tewart
14 The New Guy: Action Plan                                                                                                                                                      Steve Hiatt
16 Auctions Make the Market                                                                                                                                                       Don Elliott
18 Nuisance Charges                                                                                                                                                             Jeff Blackey
19 Maximize Your Opportunities With
            Credit-Challenged Customers                                                                                                                                             Kevin Smith
20          Auto Technician’s Income Advantages                                                                                                                                      Ryan Tithof
21          The Return on Your Investment With Good Security                                                                                                                      Bernard Boule
22          Managers Evaluation: Successful Leadership, Part 1                                                                                                                        Joe Verde
26          Customer Development Center vs.
            Sales Person Development Center                                                                                                                                       Terry L. Isaac
27          Tremendous Increase In Increments of One                                                                                                                            Timothy Gilbert
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                                                                                                                                                                                                         inventory
                                                                                                                                                              Patrick Luck, Editor & Publisher
                                                                             Success Driven Solutions




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                                                                                                                                                                                       dealer




    God Bless America                                                                                           Web: autosuccess.biz                               • thomas@autosuccess.biz

AutoSuccess 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 or
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leadership solution
                                                                                                    BrianBrian Tracy
                                                                                                        By Tracy

                                          Eliminate Enemies
                                  of Success and Happiness
                     The         greatest     sometimes in a matter of minutes or even      that sounds good, even though you
                     enemies of success       seconds.                                      know that you were an active agent in
                     and happiness are                                                      whatever occurred. You often create
                     negative emotions.       Stop justifying.                              complex ways of putting yourself in the
                     Negative emotions        The first of the four root causes of           right by explaining that your behavior
                     hold you down,           negative emotions is justification. You        was really quite acceptable, all things
tire you out and take away all your joy       can be negative only as long as you can       considered. Rationalization keeps your
in life. Negative emotions, from the          justify to yourself and others that you       negative emotions alive. Rationalization
beginning of time, have done more harm        are entitled to be angry or upset for some    and justification always require that you
to individuals and societies than all the     reason. This is why angry people are          make someone or something else the
plagues of history.                           continually explaining and elaborating        source or cause of your problem. You cast
                                              on the reasons for their negative feelings.   yourself in the role of the victim, and you
One of your most important goals, if you      However, if you cannot justify your           make the other person or organization
want to be truly happy and successful, is     negativity, you cannot be angry.              into the oppressor or the ‘bad guy’.
to free yourself from negative emotions.
Fortunately, you can do this if you learn     Refuse to                                     Rise above the opinions of others.
how. The negative emotions of fear,           rationalize and make excuses.                 The third cause of negative emotions
self-pity, envy, jealousy, inferiority        The second cause of negative emotions         is an over concern or a hypersensitivity
and anger are mostly caused by four           is rationalization. When you rationalize,     about the way other people treat you. For
factors. Once you identify and remove         you attempt to give a ‘socially acceptable    some people, their entire self-image is
these factors from your thinking, your        explanation for an otherwise socially         determined by the way other people speak
negative emotions stop automatically.         unacceptable act’. You rationalize to         to them, talk to or about them, or look at
When your negative emotions stop, the         explain away or put a favorable light on      them. They have little sense of personal
positive emotions of love, peace, joy and     something that you have done that you         value or self-worth apart from the
enthusiasm flow in to replace them, and        feel bad or unhappy about. You excuse         opinions of others. If those opinions are
your whole life changes for the better,       your actions by creating an explanation       negative for any reason, real or imagined,
                                                                                            the ‘victim’ immediately experiences
                                                                                            anger, embarrassment, shame, feelings
                                                                                            of inferiority, depression, self-pity and/or
                PROFIT...FROM                                                               despair. This explains why psychologists
                                                                                            say that almost everything you do is to
                   YOUR                                                                     earn the respect of others or at least to
                                                                                            avoid losing their respect.
                ARCHITECTURE                                                                Realize that
                                                                                            no one else is responsible.
               Over 300 new and renovated                                                   The fourth cause of negative emotions,
               dealerships designed across                                                  and the worst of all, is blaming. Imagine
               USA and Canada                                                               negative emotion as a tree. The trunk of
                On-site Facility Design                                                     the tree is the propensity to blame other
                                                                                            people for your problems. Once you cut
                Surveying                                                                   down the trunk of the tree, all the fruits of
                Feasibility Studies                                                         the tree (all the other negative emotions)
                Inclusive Design Meetings with                                              die immediately, just as the lights go out
                management team                                                             instantly when you jerk the plug out of
                Increased CSI scores and profit                                             the socket that lights up the bulbs on a
                per transaction                                                             Christmas tree. The antidote for negative
                Consulting to local                                                         emotions is for you to accept complete
                                                                                            responsibility for your situation. You
                architects and                                                              cannot say the words, ‘I am responsible’
                contractors                                                                 and still feel angry. The very act of
                Design - Build                                                              accepting responsibility short-circuits
                Services                                                                    and cancels out any negative emotions
                                                  a praxis3 company
                                                                                            you may be experiencing.
               866.856.6791                                                                 Brian Tracy is the Chairman & CEO of
                jmargaretten@praxis3.com
                     miguel@praxis3.com                                                     Brian Tracy International. He can be
                                                                                            contacted at 858.481.2977, or by email
                                                                                            at btracy@autosuccess.biz, or visit
                                                                                            www.mastersalesskills.com.


   4                                                                                                        autosuccess.biz
sales tips with David Thomas
                                                                                               DavidByThomas
                                                                                                      David Thomas



                                                                                               The Hustle
                      What does it take        best car sales people on the planet. He          • Hustle is getting the order, because
                      to be really great       went from sales person…to manager…to             you got there first or stayed with it
                      in car sales? That’s     dealer…to dealer group owner in 15               after everyone gave up.
                      the million-dollar       fast years. He was a huge motivator and          • Hustle is shoe leather and elbow
                      question everyone        teacher to all and inspired many associates      grease and sweat and missing lunch.
wants to know.                                 to reach new heights. His philosophy was         • Hustle is getting prospects to say
                                               simple. Robert’s reason for living was           ‘yes’ after they’ve said ‘no’ twenty
Is it detailed product knowledge? Yes.         God, family and selling cars, in that order.     times.
Is it a professional appearance? Yes. Is it    He was great at all three.                       • Hustle is doing more unto a customer
an outgoing personality? Yes. Is it your                                                        than the other guy is doing unto them.
clothing? Yes. Is it your product? Yes. Is     Robert died in a plane crash on the way          • Hustle is believing in yourself and
it your location? Yes. Is it your dealer’s     back from a dealer meeting in Las Vegas.         the business you’re in.
reputation? Yes.                               I think about him and the hustle often and       • Hustle is the sheer joy of winning.
                                               see if I am living up to his expectations.       • Hustle is being the sorest loser in
All of these contribute to your success.       He died a winner in life and in sales. I hope    town.
But, if you really want to know, there         I can say the same. Examine yourself and         • Hustle is hating to take a vacation,
is one magic ingredient that will make         see if you have the hustle.                      because you might miss a piece of the
or break you: ‘the hustle’. It is the                                                           action.
difference between selling five a month         The following exemplifies what Robert             • Hustle is heaven if you’re a hustler.
or 20 a month. It is the difference between    was all about. This was printed in the           • Hustle is hell if you’re not.
making a paycheck or a great living. It is     eulogy at Robert’s funeral.                     HG’88
the difference between a great career and
a job.                                         What is hustle?                                 David Thomas is the Owner of West
                                                • Hustle is doing something that               Texas Nissan in Odessa, TX. He can be
Robert Fry was a great friend and mentor        everyone is absolutely certain can’t be        contacted at 866.429.6803, or by email
to me for many years. He was one of the         done.                                          at dthomas@autosuccess.biz.




   HOW TO EASILY SELL MORE VEHICLES
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august 2003                                                                                                                        5
leadership solution
                                                                                            Pam Holloway
                                                                                                By Pam Holloway


                                                         How to Hire
                                          the Best Person for the Job
                   Consider         this,     a candidate for a sales position. “Tell me     3. What strategies do you use to
                   any question a             about a time when you had to work              repeat the customer’s key concepts
                   job applicant can          under stress.” In order to answer this,        back to him/her during your sales
                   answer ‘yes’ or            the applicant must go back in his/her          presentation?
                   ‘no’ to probably           memory and relive the experience. If he/       4. Tell me about a time when you
won’t give you quality information.           she shows signs of reliving the stress, you    overcame your own mental block or
Behavioral-based questions, on the other      know immediately that this is a person         prejudices to make a sale.
hand, provide you with key information        who might not work well under pressure.        5. Tell me about a sales incentive
on how well the person is likely to           If the applicant shows any emotion at all      program that motivated you.
perform the job.                              in answer to that question, it indicates       6. How do you try to show each
                                              that he/she has difficulty shrugging off        customer that he/she is important?
These questions begin with something          emotion. Thus, he/she might not handle         7. Tell me about your worst customer
like, “Tell me about a time when...” or       rejection well.                                dilemma and how you overcame it?
“Describe how you...” Why are they
effective? Because, behavioral questions      Sample behavior-based interview questions:    Adaptability:
are based on a simple, yet powerful           General:                                       1. Tell me about a time when you
premise – the best predictor of future          1. What did (or do) you enjoy most           worked effectively under pressure.
behavior is past behavior.                      about your last (or present) job?            2. Tell me about a time when you had
                                                2. What did (or do) you enjoy least          to adjust your working style in order
If you remained cool under pressure in          about your last (or present) job?            to achieve your objectives.
a difficult situation in the past, there’s a     3. How has your previous experience          3. Give an example of a situation
good chance you’ll react the same way           equipped you for this job?                   in which you failed, and how you
when you face one in the future. If you         4. Why did you leave your last job           handled it.
were able to change an angry customer           (or why do you want to leave your
into a happy customer in the past,              present job)?                               Decision-making & problem solving:
chances are you will use that skill and         5. Of all the work you have done,            1. Tell me about a difficult decision
repeat that behavior in the future.             where have you been the most                 you had to make. What made it
                                                successful?                                  difficult? What did you learn?
Rather than asking a job applicant              6. What can you do for us that               2. Tell me about a time when you
directly if he/she has a particular skill       someone else cannot?                         had to make a decision without all
or trait (to which he/she would almost          7. How can we best reward you for            the information you needed. How
assuredly answer ‘yes’), in behavioral          doing a good job?                            did you handle it?
interviewing, you ask applicants to             8. What kind of supervisor is likely
tell you of a specific time when they            to get the best performance out of          Communication:
demonstrated the particular skill or trait      you?                                         1. Tell me about a time when you
you’re looking for or when they dealt           9. What would your greatest                  did your best to resolve a customer
with the kind of situations that occur in       business champion say about you?             or client concern and the person still
your business.                                  10. What would your greatest                 wasn’t satisfied. What did you do?
                                                adversary say about you?                     2. Tell me about a time when you
The best behavioral questions will help         11. What was the biggest success of          lost (or won) an important contract
you elicit these three critical pieces of       your career?                                 or sale.
information:                                    12. What is the one thing that you           3. Relate a personal story in which
  1. The situation or task – What was it        would have done differently in your          you persuaded someone to do
  they needed to accomplish?                    career?                                      something that initially did not
  2. Action taken – What did they do?           13. Describe the best person you ever        appeal to them.
  3. Results     achieved     –   What          worked for or who worked for you?
  happened? What were the results?                                                          Goal setting:
                                              SpeciÞc skill:                                 1. Give me an example of an
You can also use behavioral questions to       1. Tell me about a time when you              important goal that you set, and tell
uncover ‘red flags’ – something about the       demonstrated __________ skill.                me how you reached it.
applicant that may make them a bad fit                                                        2. What steps did you take? What
for the job. Listen closely to how people     Sales:                                         obstacles did you encounter? How
describe their thoughts and actions in         1. Show me how you would sell me              did you overcome the obstacles?
specific situations. Look for behavior          on our product or service.                    3. Tell me about a goal that you set
that you wouldn’t want duplicated.             2. What strategies do you employ              that you did not reach. What steps
                                               for finding common ground with                 did you take? What obstacles did
For example, let’s say you’re interviewing     customers?                                    you encounter?
                                                                                                             continued on page 28

   6                                                                                                      autosuccess.biz
sales and training solution
                                                                                                Fran Fran Taylor
                                                                                                   By Taylor



                                                                 No Stress Selling
                      Stress comes from      Here are a few ways to                     incoming calls a day, and get on the
                      not selling cars       eliminate stress in automotive sales.      phone until you have a minimum of one
                      and not doing the      Have written goals. How many cars          confirmed appointment a day. Go out
                      right things on a      do you want to sell, and how much          and prospect every day, and hand out
                      daily basis. It’s      commission do you want to make on          cards with a $100 referral on the back.
                      your choice to be      each vehicle sold? That’s 4.76 per         (Check the laws, and make sure this is
successful. It’s your choice to sell a lot   week if you want to deliver 20 a month.    legal in your state.) Stick with this daily
of cars and make a lot of money or just      Your goal should be to sell at least one   plan, and you will sell more cars.
simply get by.                               car a day. You need at least one to two
                                                                                        When you have a qualified customer,
                                                                                        slow down to go fast. Be excited on your
                                                                                        meet and greet. Make a million dollar
                                                                                        presentation. Go on a long demo ride, and
                                                                                        get the people to like you and the vehicle.
                                                                                        If you go on a short demo and try to sell
                                                                                        a $25,000 vehicle going only five miles,
                                                                                        that’s stress. There is no value built on
                                                                                        that demo ride, and you are selling price
                                                                                        alone. There goes gross, which equals
                                                                                        stress.
                                                                                        When you come back from a demo, do
                                                                                        a walk-through of the service department
                                                                                        before you write-up your customer. Sell
                                                                                        yourself with an, ‘I come free with the
                                                                                        deal’ attitude. Customers love the service
                                                                                        walk and like you better, because you
                                                                                        show you care.
                                                                                        Stress comes from shortcutting the steps
                                                                                        of a sale and thinking you can make big
                                                                                        money.
                                                                                        Discipline yourself to form a daily
                                                                                        routine to make appointments, take ups,
                                                                                        take incoming calls, have goals and not
                                                                                        shortcut the steps of a sale. That means
                                                                                        less stress, because you will become
                                                                                        more successful than the sales people
                                                                                        with no plan. This is more fun, because
                                                                                        you stay busy compared to sales people
                                                                                        just waiting for ups.
                                                                                        If there are seven sales people waiting
                                                                                        outside a dealership. Who gets the up
                                                                                        out of the seven? Is it the fastest guy?
                                                                                        Does it depend on what type of car pulls
                                                                                        up? That is stressful. Go make it happen.
                                                                                        Have a plan every single day, and stick to
                                                                                        it. Your stress will virtually disappear. It’s
                                                                                        your choice. Make that choice today; it
                                                                                        will affect you and others you care about
                                                                                        in a positive way, because you are doing
                                                                                        what is right. You will have more fun and
                                                                                        make more money with a plan. And, most
                                                                                        of all, you will eliminate stress.

                                                                                        Fran Taylor is the President and CEO
                                                                                        of Taylor Techniques, Inc. He can be
                                                                                        contacted at 866.873.0041, or by email
                                                                                        at ftaylor@autosuccess.biz.


august 2003                                                                                                                     7
golf tips
                                                                                              Brian By Brian Manzella
                                                                                                    Manzella
                                                  Don’t Hit It at the Target
                         Let’s start with the    closes to the target as the club swings       hit the outside of the back of the ball to
                         single most basic       to the finish. For a dead straight shot to     start the ball left and ‘play’ their slice.
                         element of making       occur, the clubface contacts the inside-
                         the ball go toward      back of the ball with the face slightly         picture 2
                         the target. Where       open and carries the ball with it for
does the clubface have to be at impact to        almost an inch. The ball rebounds off the
make the ball go straight to the flag? The        clubface when the face is square (picture
quick and easy response is square, but           2). The ball flies straight at the target
just as it looks like the sun rotates around     while the clubface closes as the golfer
the earth, it is an illusion.                    swings to the finish.

The golf club is made of metal or another        There are two more points to consider:
very hard surface. It is traveling, even for     because the clubhead starts the swing
average players, near or more than 100           on or near the ground, it also goes up as
mph with a driver. The ball is made of           it goes back. Additionally, because the
a synthetic, rubber-like substance that          golfer stands to the side of the ball, the
is elastic. When they collide, the ball          clubhead also goes in toward the golfer
deforms on the face of the club and is           as it moves away from address. This
carried along by the speeding clubhead           means that from the top of the swing
for nearly an inch (picture 1). When the         back down to the swing’s lowest point
ball separates from the clubface, the            (when the clubface would be square,
clubface is nearly always in a different         normally), the clubhead is traveling
alignment with the target than it was at         downward and outward toward the
impact.                                          inside back of the ball.                      The only reason anyone slices the ball
                                                                                               is because the clubface is too open at
So, for the ball to go straight at the target,   This all gives us the recipe for perfect      impact and still too open when the ball
the face must be square at separation. The       contact with the ball and straight-away       takes off from the face. These golfers
golf swing is circular. Since the clubface       ball flight. The clubhead is moving            need to learn to open the clubface less
normally opens as the club swings away           downward, outward and forward toward          on the backswing and close it more on
from the ball and closes toward square           impact, which occurs on the inside back       the downswing. It is helpful to remember
as the clubhead approaches the ball, then        of the ball with the face still open and      to turn the entire left arm closed through
the clubface must be open at impact for          the clubhead still moving downward and        impact until the clubface is pointing at or
a straight shot.                                 outward. You hit the ball down and out,       near the ground well past the ball. If the
                                                 not toward the target.                        slicers do this in concert with opening
How open? About three degrees, which                                                           the clubface less on the backswing, they
is visually noticeable. All of this means        No matter the shot, you should look at        too can hit the inside-aft quadrant of
that the clubhead will have to contact           this area of the ball, and hit down on        the ball on the way down and out with
the inside of the back of the ball with          it—every shot you ever hit—for the rest       fantastic results.
the clubface slightly open. This impact          of your life.
alignment influences every single                                                               Contrary to popular opinion, muscles
component of the golf swing.                     If you slice, and most golfers do, and        don’t have any memory. Golf swings
                                                 the only thing from this article you tried    begin and end in the mind. Start applying
Let’s review: the clubface opens to the          to incorporate at the range was hitting       this month’s information in your coconut.
target as the clubhead swings away               the inside of the ball on the way down,       A famous teacher from long ago, Alex
from the ball. The clubface closes on the        you might hit the ball farther right. Most    Morrison, used to correctly preach
downswing, at some point is square, then         golfers need to come ‘over the top’ and       “Better golf without practice.” But when
                                                                                               you do start to practice hitting the inside
                                                                                 picture 1     of the ball on the way down, remember
                                                                                               to start slow and short and build to the
                                                                                               longer swings.


                                                                                               Brian Manzella is a PGA Teaching
                                                                                               Professional. He can be contacted
                                                                                               at 866.873.0036, or by email at
                                                                                               bmanzella@autosuccess.biz, or visit
                                                                                               www.brianmanzella.com.



   8                                                                                                          autosuccess.biz
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leadership solution
                                                                                    Tony RayTony Ray Munson
                                                                                          By Munson

                                                                       Recruiting
                                                             Better Sales People
                    The best thing to        Here are some rules for the interview:           • What would cause you to leave a
                    do while recruiting       • Don’t oversell your company.                  particular company?
                    is look for people        • Ask tough questions.
                    before you need           • Avoid interruptions during the interview.    Listen carefully to their answers. See
                    them. Make a great        • Focus on questions, and let them             how well they communicate. Take notice
                    advertisement that        do the talking.                                if they can turn the interview around and
shows what you are offering. Good people      • Clearly explain the job description.         start asking questions. This shows that
will want to know why they should work        • Don’t gossip (no war stories).               they take control and investigate, which
for you (excellent pay, benefits, five-         • Take your time; be thorough.                 is what they will be doing with your
day workweek, demo, etc.). Display the        • Let them know what to expect                 customers.
advertisement in your service department      from your dealership and your
also. Customers of yours might be             management.                                    And finally, look for personality and
interested or know someone that would                                                        attitude. You can give personality tests
be good. They are already sold on your       Try to get them to talk 70 percent of the       and run background and drug tests also.
dealership.                                  time. Here are a few questions to ask:          Make sure you check all of the laws in
                                               • Why are you looking for another job?        your state.
Make sure to take enough time to               • Why did you pick sales?
do the hiring correctly. This means            • Tell me about your last job.                After you hire a great sales person, and
interviewing extensively, having more          • What makes work meaningful to               they are performing well, continue to help
than one interview for the best people         you? (Motivators)                             them, praise them for specific actions.
and even having multiple people within         • What do you like about work?                Treat all your employees like a somebody
the dealership to do the other interviews.     • What do you dislike about work?             not a something.
Verify all of the information and              • If you had no limits what would             Tony Ray Munson is the President of
references the applicant gives. Look at        you do or be? (Dreams)                        Sales Systems International, Inc. He
why you might fire them before you even         • What would cause you to join a              can be contacted at 866.265.6575, or
hire them.                                     particular company? (Values)                  by email at tmunson@autosuccess.biz.



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  10                                                                                                        autosuccess.biz
marketing solution
                                                                                                    RobByMudd
                                                                                                         Rob Mudd

                                                                         Back to the
                                                                Basics of Advertising
                     The elements of         has to be present to make this plan work.    You have many choices of advertising
                     advertising      that   Offers can always change. You can            mediums: broadcast television, cable,
                     have been around        change your creative message as needed.      radio, newspaper, direct mail, Internet,
                     for decades are         The buying of your media is what needs       billboards, etc. Deciphering all of these
                     the same today.         to be consistent and focused.                choices to the one or two that will be
                     Although creative                                                    effective for your dealership is where
messages and mediums have evolved,           This is where your dealership can get        your advertising agency earns its keep.
the principles of implementing your          more bang for the buck. By effectively       What you need to achieve, first and
message to your market have stayed           researching your history, you can greatly    foremost, is dominance in one medium
primarily the same. As a dealer, you need    improve your future.                         and then move to the next. Find the
to make sure that you remain consistent                                                   medium that is most efficient and
with the basics.                             “What are my best days of the week,          remember, reach tells; frequency sells.
                                             best days of the month, best months          There is no need to try to be everything
1. Know your market.                         of the year?” By asking yourself these       to everyone; you need to buy vertically.
It is a simple but often overlooked          questions, you can put your advertising
element. You need to make sure you           budget to work when it will be most          5. Evaluate the results.
know where your strength lies in your        effective.                                   Keep a report card on your advertising.
dealership relative to your market. “Does                                                 When you get your marks at the end of
my store sell predominately used cars?”      When determining your advertising            each month, look over your numbers and
“Am I a new truck dealer?” “Do I have a      budget, do you allocate a specific dollar     determine your cost per sales opportunity
strong secondary finance presence in my       amount per vehicle, or do you look at        (advertising dollars spent divided by
market?” Having the knowledge of what        a fixed percentage of your combined           traffic count). How many dollars is it
your market needs and buys will save         new and used variable gross? It is           costing you to deliver a new or used
your dealership money.                       advantageous to have your advertising        unit? What percentage of gross profit
                                             budget be a fixed percentage of gross         does that number represent? What weeks
You also need to know what your              profit every month. By using this             and days did you see spikes in traffic?
potential is in your market. How many        principle, your advertising expenditure      What message and media were you using
pump-ins are coming in your area of          never gets out of line with the inevitable   when these numbers increased?
responsibility?                              low grossing months.
                                                                                          These five steps are the basic elements
2. Plan your inventory.                      4. Select an                                 you need to follow for greater
Have inventory reflective of your             effective media and dominate.                effectiveness in your advertising.
customer. Like all systems, you have to      Buy vertically. There are two key factors
understand step one in order to move         that will influence this decision: your
on to step two. If you understand your       market and your advertising budget. It
market, you know what type of vehicles       would be great if you could dominate         Rob Mudd is the Senior Vice President
you need to have in your inventory mix.      every medium. The truth of the matter        of The Mudd Group. He can be
Focus on advertising what is hot, and        is that very few dealers have the budget     contacted at 877.804.3485, or by email
promote what is not. There is no need to     to do this.                                  at rmudd@autosuccess.biz.
spend your advertising money on units
that are not going to bring in potential
customers. Advertise inventory that will
create traffic.

When it comes to your used inventory,          SAY “THANK YOU”
determine what were the top 10 new
vehicles sold in your market last year,                For just Peanuts!
and concentrate on buying those vehicles      Show your appreciation to your best sales,
at auction. Whatever models were selling      service and body shop customers, without
last year, will likely be the hot ticket
again this year.                              breaking the bank. Give them a gift of
                                                   Fine Virginia Peanuts.
3. Plan your advertising expenditures.
A 90-day plan makes a difference.
Planning your advertising placement
at least 90 days in advance can help
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august 2003                                                                                                                 11
leadership solution
                                                                                                   Leo Weidner
                                                                                                       By Leo Weidner


                                                       Is Your Life
                                         Dying From Making a Living
                      In our money-           matters most in your life first, i.e., “I put     levels of success you must serve
                      centered society,       my spouse first, I exercise, I eat right, I       yourself first.
                      many people are         spend quality and quantity time with my
                      dying from making       children, I love my work environment,            4. Family - my relationship with
                      a living. Marriages     I have spirituality in my life, I have           my spouse and children. It has been
                      are            dying.   hobbies I really enjoy, I serve and give to      said, “No success (no matter how
Relationships with children, health,          others—my life is in balance.”                   great) can compensate for failure
spirituality and overall enjoyment in life                                                     in the home.” Have face-to-face,
are dying, all in the midst of ‘just trying   True life balance                                meaningful conversations with your
to make a buck’. Stress is killing people.    is all about relationships.                      spouse each evening before retiring.
The big question is, “Is your life dying      If you truly desire to make more money,          Have a ‘date night’ with your spouse
from making a living?”                        reduce your stress and increase the              every week. Take 20 minutes each
                                              balance in your life, the grand key is           day to spend quality one-on-one time
Years ago while working with the great        the quality of your relationships. To            with each of your children.
Napoleon Hill (author of Think and Grow       achieve life balance, take care of your
Rich), he taught me a very important          most important relationships first. Try the       5. Social - my relationship with
lesson. He said, “So many people focus        following order:                                 others. As you place relationships one
on making dollars to the exclusion                                                             through four first, you will find your
of their personal lives. If they would          1. Spiritual - my relationship with my         relationships with your colleagues,
just wrap their businesses around their         Creator; the spiritual/philosophical.          employees and customers improve
personal lives, instead of the reverse,         Spend quality time each morning                dramatically. People will sense your
which most do, they would become far            in meditation, prayer, reading                 aura, your energy and will be drawn
more productive, work fewer hours and           inspirational material, etc. This will         to you.
enjoy their journey a whole lot more.”          set you up for success in everything
                                                you do throughout the day.                     6. Financial - my relationship with
Many people have doubled and tripled                                                           money and my job. If you will take
their incomes in relatively short periods       2. Emotional/intellectual    -    my           care of, in order of priority, the
of time. And, they didn’t have to work          relationship with myself. Recharge             five key relationships listed, your
double or triple the number of hours            your emotional and intellectual                relationship with money and your
to achieve these results; the grand key         batteries. Keep a journal, read from           job will be improved in ways that
to their success is the edge they gained        a favorite book or study a foreign             will astound you. Remember, if you
through having life balance.                    language—keep growing emotionally              keep your focus on relationships one
                                                and intellectually.                            through five, the money will take care
Many feel the stress and do it anyway.                                                         of itself.
You may be thinking, “I have stress every       3. Physical - my relationship with my
day—it’s just the way it is—I deal with         body. Take time every day (morning           Attain life balance, and you will attain the
it and push myself forward.” Years of           is best) to exercise. Eat a healthy,         life and career you’ve always dreamed of.
feeling the stress and doing it anyway          sensible diet.
exact a heavy toll on marriages, families,                                                   Leo Weidner is the Chairman of
physical and mental health.                     Numbers one through three are                LifeBalance Institute. He can be
                                                essential to your success in every           contacted at 866.429.6826, or by email
Wrap your business/career                       other relationship and aspect of your        at lweidner@autosuccess.biz, or visit
around your personal life.                      life. In order to achieve the highest        www.lifebal.us.
In today’s bottom-line-focused business
world, so many people, especially people
in sales, wrap their personal lives around
their businesses/careers. But those who
wrap their businesses/careers around
their personal lives, placing what matters
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most at the center, experience a reduction
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and personal income that are nothing
short of astounding.                              • PREFER IMPORT FRANCHISE
Balance is not about time.
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Spending ‘X’ amount of time with family           • CONTACT PAT AT AUTOSUCCESS
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and ‘X’ amount of time at work is not
balance. Balance is having the peace of
mind knowing that you are putting what



  12                                                                                                        autosuccess.biz
sales and training solution
                                                                                                     Mark Tewart
                                                                                                        By Mark Tewart



                                You Can Be a Top Performer
                      The        difference       Top performers doggedly pursue successful       For the next 30 days, implement the 4D’s
                      between        getting      habits. Watch your thoughts; they become        of action management: dump it, delegate
                      the results you             your words. Watch your words; they              it, defer it or do it. When anything comes
                      want and being              become your actions. Watch your actions;        your way that requires a decision, ask
                      average is action.          they become your habits. Watch your             yourself, which of the 4D’s would benefit
                      To win more, is to          habits; they become your character. Watch       you most. If it doesn’t help grow you, your
fail more. Failing with reflection creates         your character; it becomes your destiny.        family, friends, business or happiness,
education. The more action you take; the          Be willing to dream and design your goals.      don’t do it. Choose one of the other 4D’s.
more money you make. When humans are              Think bigger. It doesn’t take much more         Some of the things that require action are
in motion, they tend to be happier, more          to produce a lot than it does to produce a      better served being delegated to others. If
productive and constantly learning from           little. Producing little, actually takes more   you hate following up, and you are willing
their actions. You can’t add or delete time.      emotional and physical endurance.               to admit to being lazy in that area, hire
That’s why the term ‘time management’                                                             someone else who would be willing to
is a misnomer. You can’t manage time;             Starting this week, monitor your current        do it and do it better. If you can’t afford
you can only take more action and better          action with more processes than ever            it, then group with others having the same
manage your actions in your time.                 before. Have a written, hourly game plan        problem and share in the costs. There is
                                                  using software or manual planners. Create       always a way. When you defer items,
Top performers must have the God given            a strong focus for each hour that you           write them down, and put a date on the
talent to succeed. Although great sales           would like to accomplish. Next, create a        item as to when you will make a definitive
people are made not born, you can’t make          to-do list, and write all the specific actions   decision on this item and then put it in a
something from nothing. You can put               you would take to accomplish your hourly        visible folder that you have on the wall.
make-up on a pig, but it’s still a pig. A         goals. Prioritize your actions from ‘must
top performer has the following abilities:        do’ to ‘why do’. If you write a review          For the next 30 days, make a commitment
relates to people, displays confidence, has        each hour of what actions you have taken,       to take massive action. Give more effort
a high sense of urgency, gets people to say       you will be amazed at how much time is          than you have ever done before, and
yes to their product or service, utilizes goals   wasted. Twenty percent of your actions get      monitor the results. Remember, it’s hard
and rewards, has a commitment to learn,           you eighty percent of your results.             for good people to become great, but it’s
and grows to become a top performer. If                                                           really easy for a good person to become
a person has the God given abilities that         Everyone knows about to-do lists, but           average.
would relate well to the sales profession,        have you ever created a stop doing list?
they can begin to work on all their assets        What good is writing actions in a to-do
to become a top performer. Twenty-five             list, if they don’t help you get results?
percent of sales people account for fifty-         Create a stop doing list, and at the end        Mark Tewart is the President of Tewart
seven percent of the sales. Seventy-five           of each day, review your successes and          Enterprises. He can be contacted
percent of the remaining sales people are         failures, and write down the areas you will     at 866.429.6844, or by email at
picking up crumbs.                                reduce or stop spending time in.                mtewart@autosuccess.biz.




august 2003                                                                                                                           13
sales and training solution
                                                                                                       SteveSteve Hiatt
                                                                                                           By Hiatt



                                        The New Guy: Action Plan
                     Last         month,      to go about helping them develop those        himself up and dust off before taking
                     we covered the           characteristics differently.                  the next customer. Knowing that pure
                     processes of the                                                       enthusiasm can sustain you for the first
                     hiring and initial       With the struggling New Guy, we               90 days in sales, our challenge with
                     training of our most     have found that showing by example            him is building sustainable work habits
                     recent ‘New Guy’.        combined with very constrained activity       that both farm and hunt deals. In other
The basics of the interviewing, hiring        monitoring will determine whether             words, prospect, follow-up and prospect,
and training process were covered.            we help him survive today, to build a         but close as many walk-ins and phone
Around the same time, we also hired           base for the future. We will do this by       ups as possible in the meantime. In fact,
another New Guy going through a very          managing his activities: each up, phone       that can help balance. Who doesn’t like
similar process of training, although         up, turn and write-up. In most stores, if     the feeling of closing a prospect their
slightly different, due to him having         you can’t handle the customer, you turn       first time in? And who doesn’t like the
some sales experience at a nearby store.      them. That works very well for some           feeling of knowing you don’t have to
Now, we will review both New Guys             personality types but doesn’t provide         get sunstroke or freeze while waiting for
and the action plans developed for their      the opportunity to watch and learn a          an up, because your third referral of the
individual, continued success.                professional handle the deal. If you are      month was just sent in?
                                              a manager or a successful sales person,
At this point, the rubber meets the road.     the odds are that there was a mentor          Action plan.
The initial training is over and how          early in your career that didn’t just tell    Congratulate the successes. Let him
the New Guys react in real life, under        you how to do things, but specifically         know exactly what he is doing right.
real pressure becomes paramount. This         showed you.                                   Don’t just give a vague pat on the back
is where real character development                                                         but specific praise for specific activities,
takes place and selling styles become a       Action plan.                                  habits and skills that are bringing results.
blend of personality, drive, training and     Provide hourly contact and management         Focus on building the future. Make sure
discipline.                                   by the immediate sales manager. Waiting       that selling cars today doesn’t shortcut
                                              until the end of the shift to recap won’t     the skills and habits needed to survive
Where the two New Guy’s results are           help this talented person survive. Is there   tomorrow. Work on prospecting plans
now, is exactly that, where they are          someone in your store who needs more          and skills. Schedule specific times for
now. Today doesn’t always indicate            than a daily pulse taken to help ensure       mail outs, phone calls and face-to-face
tomorrow, but surviving today as a new        their success? You need to get the scripts    prospecting.
sales person can make the financial            that have been trained coming out of
difference of being able to run a long        the sales persons mouth so frequently,        The key I remind myself and my
distance race.                                from practice, that they become natural       managers of, in building successful
                                              responses in any given situation.             people, is that we must work toward
At the time of writing this article, one of                                                 their strengths, and make them aware
our New Guys is doing very well, and          The New Guy that is doing well has            of their weaknesses. Grow a person’s
the other is struggling. As management,       things falling into place very quickly.       talent, by matching skills and activities.
at this point in their careers, we can        Two of his successful qualities are           Then help them recognize and avoid
make the biggest difference in the short-     definitely ego and empathy. He really          downfalls. If you build a lot of rapport
and long-term results in many areas.          cares enough to cut through the veneer        and fail to use that rapport by closing,
The characteristics we dug for in the         of the customer, has enough ego to close      then there are two obvious areas to
interviews are still there, we just have      after repeated rejection, and can pick        deal with. The solution may be linking
                                                                                            questions to setting up a close. If a sales
                                                                                            person can remember all the product
                                                                                            knowledge but doesn’t relate it in a way
                                                                                            that builds value, then there are two
                                                                                            more areas to work on: yes questions
                                                                                            and practicing presentations.
                                                                                            Next month, we will deal with the results
                                                                                            and ongoing training areas for both of
                                                                                            the New Guys. Feel free to write or call
                                                                                            with any questions or suggestions.


                                                                                            Steve Hiatt is the General Sales
                                                                                            Manager of Hiatt Pontiac GMC, Hiatt
                                                                                            Outlet and Hiatt of Auburn. He can be
                                                                                            contacted at 866.265.5616, or by email
                                                                                            at shiatt@autosuccess.biz.


  14                                                                                                       autosuccess.biz
feature solution


                                                                                                     Don Elliott
                                                                                                       By Don Elliott




                       Auctions Make the Market
It happens every day at car dealerships      title processing, transportation, and        On the other hand, purchasing vehicles at
just like yours. Your sales person has       dealer financing. In 2002, auctions in the    auction is a proactive way to build used
done his/her job by landing the customer     U. S. and Canada handled transactions        car inventory with vehicles ‘targeted’
on the right car, and the customer already   valued at $81 billion, an indication that    for your market, thereby maximizing
sees it parked in his/her driveway. But      the funds transfer process is an integral    turns and gross profit. According to
how much can you put into the trade to       part of taking your cars to the auction.     the NADA Dealer Academy, auction-
make the deal work?                                                                       sourced vehicles yielded $1,511 gross
                                             The auction industry has also embraced       profit per unit retailed last year, slightly
You can check guidebooks, call your          and implemented Internet technology to       less than profits on street purchases
buddy across town, look for similar          allow dealers and remarketers to preview     and trade-ins. However, consider that
cars in your inventory or package it for     inventories in upcoming auction sales,       auction-sourced units typically sell or
the wholesalers on Monday morning.           bid on and purchase vehicles online,         turn quicker resulting in a higher return
But until somebody actually pays you         review auction market reports, and           on capital.
for the trade-in, its value is only an       manage auction inventories. Dealers can
educated guess.                              check recent auction sales online and, in    How can you get the most out of your
                                             some cases, both view and participate in     wholesale auto auction? Remember that
Wholesale        car     auctions   have     live auctions as an active bidder directly   most of your peers and competitors are
been providing the solution to the           from the dealership.                         already using the auction to help manage
redistribution of used cars for the                                                       their inventories. They want and need
better part of a century. Through active     Research shows that franchised dealers       your trade-ins. The job of the auctioneer
bidding, auctions determine the exact        take trade-ins on approximately 60           at the auction is to bring buyers and
value of any given car on that particular    percent of the new vehicles they sell        sellers together for maximum returns to
day in that market area. And, because        and 35 percent of their used vehicle         both parties.
of the volume, selling prices remain         sales. A large portion of those trade-ins
relatively consistent and predictable—a      may not match the dealer’s inventory         Six steps to auction success:
valuable tool for any sales manager who      profile and will either sit in inventory        • Be present on the block to
has to know the best price he/she can        or need to be wholesaled. Instructors          represent your cars. Someone from
offer for that trade-in vehicle.             at the NADA Dealer Academy stress              your dealership with the ability to
                                             to their students that a 90-day-old unit       make the selling decision will be
Wholesale auto auctions do more than         has been in inventory for 25 percent of        able to see, based on the number
bring buyers and sellers together to         the model year – a sizeable portion of a       of bidders on any particular car,
‘redistribute’ inventory into the right      year’s depreciation. Liquidating via the       where the market is, on that day, for
hands. Most National Auto Auction            robust market environment available            that car. Other than retail, it is not
Association auctions provide a full line     at auction will often yield, in a timely       likely that the value of that car will
of services including auto detailing,        manner, sales prices that exceed those         increase over time if there was active
mechanical repair, body and paint repair,    achievable by other means.                     bidding on the unit.



                                              “Wholesale auto auctions
                                             do more than bring buyers
                                                and sellers together to
                                             ‘redistribute’ inventory into
                                                   the right hands.”




  16                                                                                                     autosuccess.biz
• Know your market and sell to             lane. Good sellers (and buyers) can         bank financed leases, would indicate
 the money. Familiarity with auction        usually find an amicable solution to         that many dealerships will handle
 activity in you market area should         most problems discovered after the          more trade-ins as a percentage of total
 provide a good measure for the value       auction sale.                               business. Consumers who cannot qualify
 of both active trade-ins and your                                                      for new car financing or who cannot pay
 grounded inventory. When you send          • Get titles in fast. Processing titles     new car prices for whatever reason, will
 your cars to auction, or when you          quickly and correctly is necessary to       be looking for a good deal on a late-
 are buying at auction, there should        completing the auction transaction.         model used car. With the decline in lease
 not be too many surprises. Auction         Auctions work very closely with             originations and more conservative
 values are surprisingly consistent.        the DMV to make sure your cars are          residual values, savvy dealers will
                                            ready to sell. However, unless the          need to actively work the market to
 • Identify your cars to the auction        title is at the auction, the rest of the    find the right cars to meet the needs of
 early so the auction can attract           transaction is delayed.                     their customers. The auto auction is the
 buyers to your lane. Auctions have a                                                   likely resource for redistribution of late
 tremendous resource in the database       Car dealers who take advantage of the        model trades back to the right franchised
 of buying and selling activity in your    resources available from their local         dealer’s used car inventory.
 market area. They can, for example,       wholesale auto auction will be in the
 notify buyers who have shown              best position to get maximum return          And what about the value of the trade-in
 interest in red Corvettes that you        from their dealership investment. Over       talked about earlier? At your local auto
 are selling red Corvettes in the next     two million vehicles that received some      auction, buyers and sellers establish the
 auction sale.                             level of reconditioning were analyzed to     wholesale market value for cars like
                                           establish the value of those services at     you trade, each week. Whether you
 • Be accurate on announcements            the wholesale level. Off-lease vehicles      need to sell that trade-in or buy fresh
 and diligent with vehicle disclosure.     (primarily from manufacturer and             inventory, auctions provide a full-range
 For the most part, sellers who try to     captive finance sources) returned $1.77       of services to support the success of
 hide flaws in the cars they bring to       for every $1 spent on reconditioning.        your dealership.
 auction are recognized as that type       Much of the gain realized was the direct
 of seller. Bids on their cars are often   result of the efficiencies of volume at the
 lower to account for their pattern as     auto auction facilities.
 a seller. On the other hand, sellers
 who are straightforward with their        As a final note, the significant shift
 vehicles attract the best buyers.         in the type of transaction handled by        Don Elliott is the Vice President of
                                           most dealerships over the last two years     Marketing and Business Development
 • Work with buyers on arbitration         will change the role of the wholesale        at ADESA Corporations. He can be
 issues. Not all vehicle flaws are easy     auto auction in the future. The general      contacted at 866.429.6848, or by email
 to identify prior to the sale or in the   move away from leasing, particularly         at delliott@autosuccess.biz.




                                           “At your local auto auction,
                                                buyers and sellers
                                             establish the wholesale
                                            market value for cars like
                                             you trade, each week.”




august 2003                                                                                                                17
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AutoSuccess Aug03

  • 1. “Golf swings begin and end in the mind.” pg.8 .biz August 2003 Don Elliott Auctions Make the Market How to Hire the Best Person for the Job Back to the Basics of Advertising PERMIT NO 879 LOUISVILLE KY You Can Be a Top Performer PAID Louisville, KY 40202 Managers Evaluation: US POSTAGE PRSRT STD Suite 202 756 South 1st Street Successful Leadership, Part 1
  • 2. ZIEGLER ASKS… Ziegler Supersystems, Inc…a 20-year history as the most successful, hands-on, in-dealership automotive consulting firm in the entire universe. A class act with a real-world approach, Ziegler has the most impressive credentials and the best rock- solid success track record in the industry. SALES MANAGER FORUM: Motivating your Sales Team to Higher Profitability Reputable…currently working with hundreds of the most suc- Taught By James A. Ziegler cessful dealerships and dealer groups in the country. Our programs Atlanta, GA Aug 12 - 13 Chicago, IL Aug 19 - 20 are profitable, ethical, and we always get the job done. Las Vegas, NV Sept 16 - 17 Atlanta, GA Oct 7 - 8 Over the last 20 years thousands of dealer principals, Atlanta, GA Nov 11 - 12 managers, allied industry representatives and factory executives Atlanta, GA Dec 9 - 10 have attended Ziegler’s seminars on Sales, Sales Management, THE COMPLETE F&I and F&I Menu training. MENU SELLING SYSTEM Present 100% of your products 100% of the time! Taught By Becky Chernek Sponsored By Jim Ziegler & Ziegler Supersystems, Inc. Ziegler has the best trainers…the best in-dealership Virginia Beach, VA Aug 12 - 14 programs, the strongest, longest lasting results and the best man- Atlanta, GA Sept 16 - 18 agement seminars. Our stuff works in any size market or dealership. Kansas City, MO Oct 14 - 16 San Antonio, TX Nov 11 - 13 Las Vegas, NV Dec 9 - 11 Visit our Web site and seriously check us out. Call all of our references and check out our competitors. Not just the few selected references they’ll give you, but check it all out thoroughly. Make a hundred calls. Go ahead “knock yourself out!” We can stand the scrutiny and most of our com- petitors would be hard-pressed to back up their claims with real numbers in real dealerships like we do. If you’re not doing at least $2,800 a car, Stop listening to excuses and make the call right now! T IMSAOTEL T HE UL ES I NA PROF S ALES Series eo Vid oday! Call T 0-9047 1-800-610-9047 -61 1-800 www.zieglersupersystems.com
  • 3. manager I N S I D E driventeam operation uccessrevenue automobil 4 Eliminate Enemies of Success and Happiness solutions Brian Tracy 5 The Hustle David Thomas 6 How to Hire the Best Person for the Job Pam Holloway profitprofessional 7 No Stress Selling Fran Taylor 8 Don’t Hit It at the Target Brian Manzella sales 10 Recruiting Better Sales People Tony Ray Munson 11 Back to the Basics of Advertising Rob Mudd 12 Is Your Life Dying From Making a Living Leo Weidner 13 You Can Be a Top Performer Mark Tewart 14 The New Guy: Action Plan Steve Hiatt 16 Auctions Make the Market Don Elliott 18 Nuisance Charges Jeff Blackey 19 Maximize Your Opportunities With Credit-Challenged Customers Kevin Smith 20 Auto Technician’s Income Advantages Ryan Tithof 21 The Return on Your Investment With Good Security Bernard Boule 22 Managers Evaluation: Successful Leadership, Part 1 Joe Verde 26 Customer Development Center vs. Sales Person Development Center Terry L. Isaac 27 Tremendous Increase In Increments of One Timothy Gilbert A cure won’t just save children. Mary Tyler Moore It will save childhoods. International Chairman These kids live with 4-6 insulin injections daily. Plus, they face the threat of blindness, heart attack, kidney failure and amputation. Their only hope is research. The Juvenile Diabetes Research Foundation is closer than ever to finding a cure. Help us help them. Call 1.800.533.CURE or visit www.jdrfe.org dedicated to finding a cure inventory Patrick Luck, Editor & Publisher Success Driven Solutions • pat@autosuccess.biz Susan Goodman, VP of Operations • susan@autosuccess.biz Lindsay Porter, Copy Editor 756 South 1st Street, Suite 202 • lindsay@autosuccess.biz Louisville, Kentucky 40202 Amy Stuber, Advertising Services Mgr. • amy@autosuccess.biz Toll Free: 877.818.6620 Jeffrey Kemelgor, Advertising Services • jeff@autosuccess.biz Facsimile: 502.588.3170 Thomas Williams, Creative Director dealer God Bless America Web: autosuccess.biz • thomas@autosuccess.biz AutoSuccess 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 or info@autosuccess.biz. Subscription rate is $75 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content, and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means 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. AutoSuccess may 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.
  • 4. leadership solution BrianBrian Tracy By Tracy Eliminate Enemies of Success and Happiness The greatest sometimes in a matter of minutes or even that sounds good, even though you enemies of success seconds. know that you were an active agent in and happiness are whatever occurred. You often create negative emotions. Stop justifying. complex ways of putting yourself in the Negative emotions The first of the four root causes of right by explaining that your behavior hold you down, negative emotions is justification. You was really quite acceptable, all things tire you out and take away all your joy can be negative only as long as you can considered. Rationalization keeps your in life. Negative emotions, from the justify to yourself and others that you negative emotions alive. Rationalization beginning of time, have done more harm are entitled to be angry or upset for some and justification always require that you to individuals and societies than all the reason. This is why angry people are make someone or something else the plagues of history. continually explaining and elaborating source or cause of your problem. You cast on the reasons for their negative feelings. yourself in the role of the victim, and you One of your most important goals, if you However, if you cannot justify your make the other person or organization want to be truly happy and successful, is negativity, you cannot be angry. into the oppressor or the ‘bad guy’. to free yourself from negative emotions. Fortunately, you can do this if you learn Refuse to Rise above the opinions of others. how. The negative emotions of fear, rationalize and make excuses. The third cause of negative emotions self-pity, envy, jealousy, inferiority The second cause of negative emotions is an over concern or a hypersensitivity and anger are mostly caused by four is rationalization. When you rationalize, about the way other people treat you. For factors. Once you identify and remove you attempt to give a ‘socially acceptable some people, their entire self-image is these factors from your thinking, your explanation for an otherwise socially determined by the way other people speak negative emotions stop automatically. unacceptable act’. You rationalize to to them, talk to or about them, or look at When your negative emotions stop, the explain away or put a favorable light on them. They have little sense of personal positive emotions of love, peace, joy and something that you have done that you value or self-worth apart from the enthusiasm flow in to replace them, and feel bad or unhappy about. You excuse opinions of others. If those opinions are your whole life changes for the better, your actions by creating an explanation negative for any reason, real or imagined, the ‘victim’ immediately experiences anger, embarrassment, shame, feelings of inferiority, depression, self-pity and/or PROFIT...FROM despair. This explains why psychologists say that almost everything you do is to YOUR earn the respect of others or at least to avoid losing their respect. ARCHITECTURE Realize that no one else is responsible. Over 300 new and renovated The fourth cause of negative emotions, dealerships designed across and the worst of all, is blaming. Imagine USA and Canada negative emotion as a tree. The trunk of On-site Facility Design the tree is the propensity to blame other people for your problems. Once you cut Surveying down the trunk of the tree, all the fruits of Feasibility Studies the tree (all the other negative emotions) Inclusive Design Meetings with die immediately, just as the lights go out management team instantly when you jerk the plug out of Increased CSI scores and profit the socket that lights up the bulbs on a per transaction Christmas tree. The antidote for negative Consulting to local emotions is for you to accept complete responsibility for your situation. You architects and cannot say the words, ‘I am responsible’ contractors and still feel angry. The very act of Design - Build accepting responsibility short-circuits Services and cancels out any negative emotions a praxis3 company you may be experiencing. 866.856.6791 Brian Tracy is the Chairman & CEO of jmargaretten@praxis3.com miguel@praxis3.com Brian Tracy International. He can be contacted at 858.481.2977, or by email at btracy@autosuccess.biz, or visit www.mastersalesskills.com. 4 autosuccess.biz
  • 5. sales tips with David Thomas DavidByThomas David Thomas The Hustle What does it take best car sales people on the planet. He • Hustle is getting the order, because to be really great went from sales person…to manager…to you got there first or stayed with it in car sales? That’s dealer…to dealer group owner in 15 after everyone gave up. the million-dollar fast years. He was a huge motivator and • Hustle is shoe leather and elbow question everyone teacher to all and inspired many associates grease and sweat and missing lunch. wants to know. to reach new heights. His philosophy was • Hustle is getting prospects to say simple. Robert’s reason for living was ‘yes’ after they’ve said ‘no’ twenty Is it detailed product knowledge? Yes. God, family and selling cars, in that order. times. Is it a professional appearance? Yes. Is it He was great at all three. • Hustle is doing more unto a customer an outgoing personality? Yes. Is it your than the other guy is doing unto them. clothing? Yes. Is it your product? Yes. Is Robert died in a plane crash on the way • Hustle is believing in yourself and it your location? Yes. Is it your dealer’s back from a dealer meeting in Las Vegas. the business you’re in. reputation? Yes. I think about him and the hustle often and • Hustle is the sheer joy of winning. see if I am living up to his expectations. • Hustle is being the sorest loser in All of these contribute to your success. He died a winner in life and in sales. I hope town. But, if you really want to know, there I can say the same. Examine yourself and • Hustle is hating to take a vacation, is one magic ingredient that will make see if you have the hustle. because you might miss a piece of the or break you: ‘the hustle’. It is the action. difference between selling five a month The following exemplifies what Robert • Hustle is heaven if you’re a hustler. or 20 a month. It is the difference between was all about. This was printed in the • Hustle is hell if you’re not. making a paycheck or a great living. It is eulogy at Robert’s funeral. HG’88 the difference between a great career and a job. What is hustle? David Thomas is the Owner of West • Hustle is doing something that Texas Nissan in Odessa, TX. He can be Robert Fry was a great friend and mentor everyone is absolutely certain can’t be contacted at 866.429.6803, or by email to me for many years. He was one of the done. at dthomas@autosuccess.biz. 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: Management Phone Skills Basic Sales Negotiating/Closing/Desking Advanced Sales Customer Service Let our clients tell you what they think! P.S. FREE Newsletter! Go to www.tewart.com & click on newsletter. For FREE Consultation: 866.429.6844 or 513.932.9526 august 2003 5
  • 6. leadership solution Pam Holloway By Pam Holloway How to Hire the Best Person for the Job Consider this, a candidate for a sales position. “Tell me 3. What strategies do you use to any question a about a time when you had to work repeat the customer’s key concepts job applicant can under stress.” In order to answer this, back to him/her during your sales answer ‘yes’ or the applicant must go back in his/her presentation? ‘no’ to probably memory and relive the experience. If he/ 4. Tell me about a time when you won’t give you quality information. she shows signs of reliving the stress, you overcame your own mental block or Behavioral-based questions, on the other know immediately that this is a person prejudices to make a sale. hand, provide you with key information who might not work well under pressure. 5. Tell me about a sales incentive on how well the person is likely to If the applicant shows any emotion at all program that motivated you. perform the job. in answer to that question, it indicates 6. How do you try to show each that he/she has difficulty shrugging off customer that he/she is important? These questions begin with something emotion. Thus, he/she might not handle 7. Tell me about your worst customer like, “Tell me about a time when...” or rejection well. dilemma and how you overcame it? “Describe how you...” Why are they effective? Because, behavioral questions Sample behavior-based interview questions: Adaptability: are based on a simple, yet powerful General: 1. Tell me about a time when you premise – the best predictor of future 1. What did (or do) you enjoy most worked effectively under pressure. behavior is past behavior. about your last (or present) job? 2. Tell me about a time when you had 2. What did (or do) you enjoy least to adjust your working style in order If you remained cool under pressure in about your last (or present) job? to achieve your objectives. a difficult situation in the past, there’s a 3. How has your previous experience 3. Give an example of a situation good chance you’ll react the same way equipped you for this job? in which you failed, and how you when you face one in the future. If you 4. Why did you leave your last job handled it. were able to change an angry customer (or why do you want to leave your into a happy customer in the past, present job)? Decision-making & problem solving: chances are you will use that skill and 5. Of all the work you have done, 1. Tell me about a difficult decision repeat that behavior in the future. where have you been the most you had to make. What made it successful? difficult? What did you learn? Rather than asking a job applicant 6. What can you do for us that 2. Tell me about a time when you directly if he/she has a particular skill someone else cannot? had to make a decision without all or trait (to which he/she would almost 7. How can we best reward you for the information you needed. How assuredly answer ‘yes’), in behavioral doing a good job? did you handle it? interviewing, you ask applicants to 8. What kind of supervisor is likely tell you of a specific time when they to get the best performance out of Communication: demonstrated the particular skill or trait you? 1. Tell me about a time when you you’re looking for or when they dealt 9. What would your greatest did your best to resolve a customer with the kind of situations that occur in business champion say about you? or client concern and the person still your business. 10. What would your greatest wasn’t satisfied. What did you do? adversary say about you? 2. Tell me about a time when you The best behavioral questions will help 11. What was the biggest success of lost (or won) an important contract you elicit these three critical pieces of your career? or sale. information: 12. What is the one thing that you 3. Relate a personal story in which 1. The situation or task – What was it would have done differently in your you persuaded someone to do they needed to accomplish? career? something that initially did not 2. Action taken – What did they do? 13. Describe the best person you ever appeal to them. 3. Results achieved – What worked for or who worked for you? happened? What were the results? Goal setting: SpeciÞc skill: 1. Give me an example of an You can also use behavioral questions to 1. Tell me about a time when you important goal that you set, and tell uncover ‘red flags’ – something about the demonstrated __________ skill. me how you reached it. applicant that may make them a bad fit 2. What steps did you take? What for the job. Listen closely to how people Sales: obstacles did you encounter? How describe their thoughts and actions in 1. Show me how you would sell me did you overcome the obstacles? specific situations. Look for behavior on our product or service. 3. Tell me about a goal that you set that you wouldn’t want duplicated. 2. What strategies do you employ that you did not reach. What steps for finding common ground with did you take? What obstacles did For example, let’s say you’re interviewing customers? you encounter? continued on page 28 6 autosuccess.biz
  • 7. sales and training solution Fran Fran Taylor By Taylor No Stress Selling Stress comes from Here are a few ways to incoming calls a day, and get on the not selling cars eliminate stress in automotive sales. phone until you have a minimum of one and not doing the Have written goals. How many cars confirmed appointment a day. Go out right things on a do you want to sell, and how much and prospect every day, and hand out daily basis. It’s commission do you want to make on cards with a $100 referral on the back. your choice to be each vehicle sold? That’s 4.76 per (Check the laws, and make sure this is successful. It’s your choice to sell a lot week if you want to deliver 20 a month. legal in your state.) Stick with this daily of cars and make a lot of money or just Your goal should be to sell at least one plan, and you will sell more cars. simply get by. car a day. You need at least one to two When you have a qualified customer, slow down to go fast. Be excited on your meet and greet. Make a million dollar presentation. Go on a long demo ride, and get the people to like you and the vehicle. If you go on a short demo and try to sell a $25,000 vehicle going only five miles, that’s stress. There is no value built on that demo ride, and you are selling price alone. There goes gross, which equals stress. When you come back from a demo, do a walk-through of the service department before you write-up your customer. Sell yourself with an, ‘I come free with the deal’ attitude. Customers love the service walk and like you better, because you show you care. Stress comes from shortcutting the steps of a sale and thinking you can make big money. Discipline yourself to form a daily routine to make appointments, take ups, take incoming calls, have goals and not shortcut the steps of a sale. That means less stress, because you will become more successful than the sales people with no plan. This is more fun, because you stay busy compared to sales people just waiting for ups. If there are seven sales people waiting outside a dealership. Who gets the up out of the seven? Is it the fastest guy? Does it depend on what type of car pulls up? That is stressful. Go make it happen. Have a plan every single day, and stick to it. Your stress will virtually disappear. It’s your choice. Make that choice today; it will affect you and others you care about in a positive way, because you are doing what is right. You will have more fun and make more money with a plan. And, most of all, you will eliminate stress. Fran Taylor is the President and CEO of Taylor Techniques, Inc. He can be contacted at 866.873.0041, or by email at ftaylor@autosuccess.biz. august 2003 7
  • 8. golf tips Brian By Brian Manzella Manzella Don’t Hit It at the Target Let’s start with the closes to the target as the club swings hit the outside of the back of the ball to single most basic to the finish. For a dead straight shot to start the ball left and ‘play’ their slice. element of making occur, the clubface contacts the inside- the ball go toward back of the ball with the face slightly picture 2 the target. Where open and carries the ball with it for does the clubface have to be at impact to almost an inch. The ball rebounds off the make the ball go straight to the flag? The clubface when the face is square (picture quick and easy response is square, but 2). The ball flies straight at the target just as it looks like the sun rotates around while the clubface closes as the golfer the earth, it is an illusion. swings to the finish. The golf club is made of metal or another There are two more points to consider: very hard surface. It is traveling, even for because the clubhead starts the swing average players, near or more than 100 on or near the ground, it also goes up as mph with a driver. The ball is made of it goes back. Additionally, because the a synthetic, rubber-like substance that golfer stands to the side of the ball, the is elastic. When they collide, the ball clubhead also goes in toward the golfer deforms on the face of the club and is as it moves away from address. This carried along by the speeding clubhead means that from the top of the swing for nearly an inch (picture 1). When the back down to the swing’s lowest point ball separates from the clubface, the (when the clubface would be square, clubface is nearly always in a different normally), the clubhead is traveling alignment with the target than it was at downward and outward toward the impact. inside back of the ball. The only reason anyone slices the ball is because the clubface is too open at So, for the ball to go straight at the target, This all gives us the recipe for perfect impact and still too open when the ball the face must be square at separation. The contact with the ball and straight-away takes off from the face. These golfers golf swing is circular. Since the clubface ball flight. The clubhead is moving need to learn to open the clubface less normally opens as the club swings away downward, outward and forward toward on the backswing and close it more on from the ball and closes toward square impact, which occurs on the inside back the downswing. It is helpful to remember as the clubhead approaches the ball, then of the ball with the face still open and to turn the entire left arm closed through the clubface must be open at impact for the clubhead still moving downward and impact until the clubface is pointing at or a straight shot. outward. You hit the ball down and out, near the ground well past the ball. If the not toward the target. slicers do this in concert with opening How open? About three degrees, which the clubface less on the backswing, they is visually noticeable. All of this means No matter the shot, you should look at too can hit the inside-aft quadrant of that the clubhead will have to contact this area of the ball, and hit down on the ball on the way down and out with the inside of the back of the ball with it—every shot you ever hit—for the rest fantastic results. the clubface slightly open. This impact of your life. alignment influences every single Contrary to popular opinion, muscles component of the golf swing. If you slice, and most golfers do, and don’t have any memory. Golf swings the only thing from this article you tried begin and end in the mind. Start applying Let’s review: the clubface opens to the to incorporate at the range was hitting this month’s information in your coconut. target as the clubhead swings away the inside of the ball on the way down, A famous teacher from long ago, Alex from the ball. The clubface closes on the you might hit the ball farther right. Most Morrison, used to correctly preach downswing, at some point is square, then golfers need to come ‘over the top’ and “Better golf without practice.” But when you do start to practice hitting the inside picture 1 of the ball on the way down, remember to start slow and short and build to the longer swings. Brian Manzella is a PGA Teaching Professional. He can be contacted at 866.873.0036, or by email at bmanzella@autosuccess.biz, or visit www.brianmanzella.com. 8 autosuccess.biz
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  • 10. leadership solution Tony RayTony Ray Munson By Munson Recruiting Better Sales People The best thing to Here are some rules for the interview: • What would cause you to leave a do while recruiting • Don’t oversell your company. particular company? is look for people • Ask tough questions. before you need • Avoid interruptions during the interview. Listen carefully to their answers. See them. Make a great • Focus on questions, and let them how well they communicate. Take notice advertisement that do the talking. if they can turn the interview around and shows what you are offering. Good people • Clearly explain the job description. start asking questions. This shows that will want to know why they should work • Don’t gossip (no war stories). they take control and investigate, which for you (excellent pay, benefits, five- • Take your time; be thorough. is what they will be doing with your day workweek, demo, etc.). Display the • Let them know what to expect customers. advertisement in your service department from your dealership and your also. Customers of yours might be management. And finally, look for personality and interested or know someone that would attitude. You can give personality tests be good. They are already sold on your Try to get them to talk 70 percent of the and run background and drug tests also. dealership. time. Here are a few questions to ask: Make sure you check all of the laws in • Why are you looking for another job? your state. Make sure to take enough time to • Why did you pick sales? do the hiring correctly. This means • Tell me about your last job. After you hire a great sales person, and interviewing extensively, having more • What makes work meaningful to they are performing well, continue to help than one interview for the best people you? (Motivators) them, praise them for specific actions. and even having multiple people within • What do you like about work? Treat all your employees like a somebody the dealership to do the other interviews. • What do you dislike about work? not a something. Verify all of the information and • If you had no limits what would Tony Ray Munson is the President of references the applicant gives. Look at you do or be? (Dreams) Sales Systems International, Inc. He why you might fire them before you even • What would cause you to join a can be contacted at 866.265.6575, or hire them. particular company? (Values) by email at tmunson@autosuccess.biz. Service Advisor Training All Skill Levels Presented by.... • Increase Customer Paid Labor Sales and Parts Sales. • Increase Customer Satisfaction Scores. • Increase Customer Retention. • Set up a Non-Confrontational Jeff Cowan Complete Selling System and Culture. • Learn to Sustain Growth. • Learn to Control Your Customers and your Workday. • Learn how to Walk Around Every I Will Turn Your Service Clerks Into SELLING Car, Every Time TM Service Advisors. We Deliver The Most Intense • Learn the Sit, Flip, Pop and Powerful Two Day Workshops You or Your Service Look TM Technique. Advisors Have Ever Experienced! • Become a “Full Service Promise” TM dealership. We Also Deliver Our World Class Training In- House On Your Service Drive or On DVD. We have In-house on your service recently re-recorded our DVD’s. They now offer drive, offsite or on DVD 40% More Content and are available in Spanish. ASK FOR SUSAN FOR YOUR FREE 866.265.5552 DEMO DISK - RESERVE YOUR SEATING TODAY! SPACES LIMITED 10 autosuccess.biz
  • 11. marketing solution RobByMudd Rob Mudd Back to the Basics of Advertising The elements of has to be present to make this plan work. You have many choices of advertising advertising that Offers can always change. You can mediums: broadcast television, cable, have been around change your creative message as needed. radio, newspaper, direct mail, Internet, for decades are The buying of your media is what needs billboards, etc. Deciphering all of these the same today. to be consistent and focused. choices to the one or two that will be Although creative effective for your dealership is where messages and mediums have evolved, This is where your dealership can get your advertising agency earns its keep. the principles of implementing your more bang for the buck. By effectively What you need to achieve, first and message to your market have stayed researching your history, you can greatly foremost, is dominance in one medium primarily the same. As a dealer, you need improve your future. and then move to the next. Find the to make sure that you remain consistent medium that is most efficient and with the basics. “What are my best days of the week, remember, reach tells; frequency sells. best days of the month, best months There is no need to try to be everything 1. Know your market. of the year?” By asking yourself these to everyone; you need to buy vertically. It is a simple but often overlooked questions, you can put your advertising element. You need to make sure you budget to work when it will be most 5. Evaluate the results. know where your strength lies in your effective. Keep a report card on your advertising. dealership relative to your market. “Does When you get your marks at the end of my store sell predominately used cars?” When determining your advertising each month, look over your numbers and “Am I a new truck dealer?” “Do I have a budget, do you allocate a specific dollar determine your cost per sales opportunity strong secondary finance presence in my amount per vehicle, or do you look at (advertising dollars spent divided by market?” Having the knowledge of what a fixed percentage of your combined traffic count). How many dollars is it your market needs and buys will save new and used variable gross? It is costing you to deliver a new or used your dealership money. advantageous to have your advertising unit? What percentage of gross profit budget be a fixed percentage of gross does that number represent? What weeks You also need to know what your profit every month. By using this and days did you see spikes in traffic? potential is in your market. How many principle, your advertising expenditure What message and media were you using pump-ins are coming in your area of never gets out of line with the inevitable when these numbers increased? responsibility? low grossing months. These five steps are the basic elements 2. Plan your inventory. 4. Select an you need to follow for greater Have inventory reflective of your effective media and dominate. effectiveness in your advertising. customer. Like all systems, you have to Buy vertically. There are two key factors understand step one in order to move that will influence this decision: your on to step two. If you understand your market and your advertising budget. It market, you know what type of vehicles would be great if you could dominate Rob Mudd is the Senior Vice President you need to have in your inventory mix. every medium. The truth of the matter of The Mudd Group. He can be Focus on advertising what is hot, and is that very few dealers have the budget contacted at 877.804.3485, or by email promote what is not. There is no need to to do this. at rmudd@autosuccess.biz. spend your advertising money on units that are not going to bring in potential customers. Advertise inventory that will create traffic. When it comes to your used inventory, SAY “THANK YOU” determine what were the top 10 new vehicles sold in your market last year, For just Peanuts! and concentrate on buying those vehicles Show your appreciation to your best sales, at auction. Whatever models were selling service and body shop customers, without last year, will likely be the hot ticket again this year. breaking the bank. Give them a gift of Fine Virginia Peanuts. 3. Plan your advertising expenditures. A 90-day plan makes a difference. Planning your advertising placement at least 90 days in advance can help CLASSIC NUTS OF VIRGINIA LET US DO THE WORK . . . YOU GET THE CREDIT! eliminate last minute, knee-jerk reactions. Commitment, on your part, www.classic-nuts.com sales@classic-nuts.com 866.873.0031 august 2003 11
  • 12. leadership solution Leo Weidner By Leo Weidner Is Your Life Dying From Making a Living In our money- matters most in your life first, i.e., “I put levels of success you must serve centered society, my spouse first, I exercise, I eat right, I yourself first. many people are spend quality and quantity time with my dying from making children, I love my work environment, 4. Family - my relationship with a living. Marriages I have spirituality in my life, I have my spouse and children. It has been are dying. hobbies I really enjoy, I serve and give to said, “No success (no matter how Relationships with children, health, others—my life is in balance.” great) can compensate for failure spirituality and overall enjoyment in life in the home.” Have face-to-face, are dying, all in the midst of ‘just trying True life balance meaningful conversations with your to make a buck’. Stress is killing people. is all about relationships. spouse each evening before retiring. The big question is, “Is your life dying If you truly desire to make more money, Have a ‘date night’ with your spouse from making a living?” reduce your stress and increase the every week. Take 20 minutes each balance in your life, the grand key is day to spend quality one-on-one time Years ago while working with the great the quality of your relationships. To with each of your children. Napoleon Hill (author of Think and Grow achieve life balance, take care of your Rich), he taught me a very important most important relationships first. Try the 5. Social - my relationship with lesson. He said, “So many people focus following order: others. As you place relationships one on making dollars to the exclusion through four first, you will find your of their personal lives. If they would 1. Spiritual - my relationship with my relationships with your colleagues, just wrap their businesses around their Creator; the spiritual/philosophical. employees and customers improve personal lives, instead of the reverse, Spend quality time each morning dramatically. People will sense your which most do, they would become far in meditation, prayer, reading aura, your energy and will be drawn more productive, work fewer hours and inspirational material, etc. This will to you. enjoy their journey a whole lot more.” set you up for success in everything you do throughout the day. 6. Financial - my relationship with Many people have doubled and tripled money and my job. If you will take their incomes in relatively short periods 2. Emotional/intellectual - my care of, in order of priority, the of time. And, they didn’t have to work relationship with myself. Recharge five key relationships listed, your double or triple the number of hours your emotional and intellectual relationship with money and your to achieve these results; the grand key batteries. Keep a journal, read from job will be improved in ways that to their success is the edge they gained a favorite book or study a foreign will astound you. Remember, if you through having life balance. language—keep growing emotionally keep your focus on relationships one and intellectually. through five, the money will take care Many feel the stress and do it anyway. of itself. You may be thinking, “I have stress every 3. Physical - my relationship with my day—it’s just the way it is—I deal with body. Take time every day (morning Attain life balance, and you will attain the it and push myself forward.” Years of is best) to exercise. Eat a healthy, life and career you’ve always dreamed of. feeling the stress and doing it anyway sensible diet. exact a heavy toll on marriages, families, Leo Weidner is the Chairman of physical and mental health. Numbers one through three are LifeBalance Institute. He can be essential to your success in every contacted at 866.429.6826, or by email Wrap your business/career other relationship and aspect of your at lweidner@autosuccess.biz, or visit around your personal life. life. In order to achieve the highest www.lifebal.us. In today’s bottom-line-focused business world, so many people, especially people in sales, wrap their personal lives around their businesses/careers. But those who wrap their businesses/careers around their personal lives, placing what matters CONSIDERING SELLING YOUR DEALERSHIP? • QUALIFIED BUYER 877.818.6620 most at the center, experience a reduction in stress and an increase in productivity and personal income that are nothing short of astounding. • PREFER IMPORT FRANCHISE Balance is not about time. • SELL WITH ZERO BROKER FEE Spending ‘X’ amount of time with family • CONTACT PAT AT AUTOSUCCESS • 100% CONFIDENTIAL and ‘X’ amount of time at work is not balance. Balance is having the peace of mind knowing that you are putting what 12 autosuccess.biz
  • 13. sales and training solution Mark Tewart By Mark Tewart You Can Be a Top Performer The difference Top performers doggedly pursue successful For the next 30 days, implement the 4D’s between getting habits. Watch your thoughts; they become of action management: dump it, delegate the results you your words. Watch your words; they it, defer it or do it. When anything comes want and being become your actions. Watch your actions; your way that requires a decision, ask average is action. they become your habits. Watch your yourself, which of the 4D’s would benefit To win more, is to habits; they become your character. Watch you most. If it doesn’t help grow you, your fail more. Failing with reflection creates your character; it becomes your destiny. family, friends, business or happiness, education. The more action you take; the Be willing to dream and design your goals. don’t do it. Choose one of the other 4D’s. more money you make. When humans are Think bigger. It doesn’t take much more Some of the things that require action are in motion, they tend to be happier, more to produce a lot than it does to produce a better served being delegated to others. If productive and constantly learning from little. Producing little, actually takes more you hate following up, and you are willing their actions. You can’t add or delete time. emotional and physical endurance. to admit to being lazy in that area, hire That’s why the term ‘time management’ someone else who would be willing to is a misnomer. You can’t manage time; Starting this week, monitor your current do it and do it better. If you can’t afford you can only take more action and better action with more processes than ever it, then group with others having the same manage your actions in your time. before. Have a written, hourly game plan problem and share in the costs. There is using software or manual planners. Create always a way. When you defer items, Top performers must have the God given a strong focus for each hour that you write them down, and put a date on the talent to succeed. Although great sales would like to accomplish. Next, create a item as to when you will make a definitive people are made not born, you can’t make to-do list, and write all the specific actions decision on this item and then put it in a something from nothing. You can put you would take to accomplish your hourly visible folder that you have on the wall. make-up on a pig, but it’s still a pig. A goals. Prioritize your actions from ‘must top performer has the following abilities: do’ to ‘why do’. If you write a review For the next 30 days, make a commitment relates to people, displays confidence, has each hour of what actions you have taken, to take massive action. Give more effort a high sense of urgency, gets people to say you will be amazed at how much time is than you have ever done before, and yes to their product or service, utilizes goals wasted. Twenty percent of your actions get monitor the results. Remember, it’s hard and rewards, has a commitment to learn, you eighty percent of your results. for good people to become great, but it’s and grows to become a top performer. If really easy for a good person to become a person has the God given abilities that Everyone knows about to-do lists, but average. would relate well to the sales profession, have you ever created a stop doing list? they can begin to work on all their assets What good is writing actions in a to-do to become a top performer. Twenty-five list, if they don’t help you get results? percent of sales people account for fifty- Create a stop doing list, and at the end Mark Tewart is the President of Tewart seven percent of the sales. Seventy-five of each day, review your successes and Enterprises. He can be contacted percent of the remaining sales people are failures, and write down the areas you will at 866.429.6844, or by email at picking up crumbs. reduce or stop spending time in. mtewart@autosuccess.biz. august 2003 13
  • 14. sales and training solution SteveSteve Hiatt By Hiatt The New Guy: Action Plan Last month, to go about helping them develop those himself up and dust off before taking we covered the characteristics differently. the next customer. Knowing that pure processes of the enthusiasm can sustain you for the first hiring and initial With the struggling New Guy, we 90 days in sales, our challenge with training of our most have found that showing by example him is building sustainable work habits recent ‘New Guy’. combined with very constrained activity that both farm and hunt deals. In other The basics of the interviewing, hiring monitoring will determine whether words, prospect, follow-up and prospect, and training process were covered. we help him survive today, to build a but close as many walk-ins and phone Around the same time, we also hired base for the future. We will do this by ups as possible in the meantime. In fact, another New Guy going through a very managing his activities: each up, phone that can help balance. Who doesn’t like similar process of training, although up, turn and write-up. In most stores, if the feeling of closing a prospect their slightly different, due to him having you can’t handle the customer, you turn first time in? And who doesn’t like the some sales experience at a nearby store. them. That works very well for some feeling of knowing you don’t have to Now, we will review both New Guys personality types but doesn’t provide get sunstroke or freeze while waiting for and the action plans developed for their the opportunity to watch and learn a an up, because your third referral of the individual, continued success. professional handle the deal. If you are month was just sent in? a manager or a successful sales person, At this point, the rubber meets the road. the odds are that there was a mentor Action plan. The initial training is over and how early in your career that didn’t just tell Congratulate the successes. Let him the New Guys react in real life, under you how to do things, but specifically know exactly what he is doing right. real pressure becomes paramount. This showed you. Don’t just give a vague pat on the back is where real character development but specific praise for specific activities, takes place and selling styles become a Action plan. habits and skills that are bringing results. blend of personality, drive, training and Provide hourly contact and management Focus on building the future. Make sure discipline. by the immediate sales manager. Waiting that selling cars today doesn’t shortcut until the end of the shift to recap won’t the skills and habits needed to survive Where the two New Guy’s results are help this talented person survive. Is there tomorrow. Work on prospecting plans now, is exactly that, where they are someone in your store who needs more and skills. Schedule specific times for now. Today doesn’t always indicate than a daily pulse taken to help ensure mail outs, phone calls and face-to-face tomorrow, but surviving today as a new their success? You need to get the scripts prospecting. sales person can make the financial that have been trained coming out of difference of being able to run a long the sales persons mouth so frequently, The key I remind myself and my distance race. from practice, that they become natural managers of, in building successful responses in any given situation. people, is that we must work toward At the time of writing this article, one of their strengths, and make them aware our New Guys is doing very well, and The New Guy that is doing well has of their weaknesses. Grow a person’s the other is struggling. As management, things falling into place very quickly. talent, by matching skills and activities. at this point in their careers, we can Two of his successful qualities are Then help them recognize and avoid make the biggest difference in the short- definitely ego and empathy. He really downfalls. If you build a lot of rapport and long-term results in many areas. cares enough to cut through the veneer and fail to use that rapport by closing, The characteristics we dug for in the of the customer, has enough ego to close then there are two obvious areas to interviews are still there, we just have after repeated rejection, and can pick deal with. The solution may be linking questions to setting up a close. If a sales person can remember all the product knowledge but doesn’t relate it in a way that builds value, then there are two more areas to work on: yes questions and practicing presentations. Next month, we will deal with the results and ongoing training areas for both of the New Guys. Feel free to write or call with any questions or suggestions. Steve Hiatt is the General Sales Manager of Hiatt Pontiac GMC, Hiatt Outlet and Hiatt of Auburn. He can be contacted at 866.265.5616, or by email at shiatt@autosuccess.biz. 14 autosuccess.biz
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  • 16. feature solution Don Elliott By Don Elliott Auctions Make the Market It happens every day at car dealerships title processing, transportation, and On the other hand, purchasing vehicles at just like yours. Your sales person has dealer financing. In 2002, auctions in the auction is a proactive way to build used done his/her job by landing the customer U. S. and Canada handled transactions car inventory with vehicles ‘targeted’ on the right car, and the customer already valued at $81 billion, an indication that for your market, thereby maximizing sees it parked in his/her driveway. But the funds transfer process is an integral turns and gross profit. According to how much can you put into the trade to part of taking your cars to the auction. the NADA Dealer Academy, auction- make the deal work? sourced vehicles yielded $1,511 gross The auction industry has also embraced profit per unit retailed last year, slightly You can check guidebooks, call your and implemented Internet technology to less than profits on street purchases buddy across town, look for similar allow dealers and remarketers to preview and trade-ins. However, consider that cars in your inventory or package it for inventories in upcoming auction sales, auction-sourced units typically sell or the wholesalers on Monday morning. bid on and purchase vehicles online, turn quicker resulting in a higher return But until somebody actually pays you review auction market reports, and on capital. for the trade-in, its value is only an manage auction inventories. Dealers can educated guess. check recent auction sales online and, in How can you get the most out of your some cases, both view and participate in wholesale auto auction? Remember that Wholesale car auctions have live auctions as an active bidder directly most of your peers and competitors are been providing the solution to the from the dealership. already using the auction to help manage redistribution of used cars for the their inventories. They want and need better part of a century. Through active Research shows that franchised dealers your trade-ins. The job of the auctioneer bidding, auctions determine the exact take trade-ins on approximately 60 at the auction is to bring buyers and value of any given car on that particular percent of the new vehicles they sell sellers together for maximum returns to day in that market area. And, because and 35 percent of their used vehicle both parties. of the volume, selling prices remain sales. A large portion of those trade-ins relatively consistent and predictable—a may not match the dealer’s inventory Six steps to auction success: valuable tool for any sales manager who profile and will either sit in inventory • Be present on the block to has to know the best price he/she can or need to be wholesaled. Instructors represent your cars. Someone from offer for that trade-in vehicle. at the NADA Dealer Academy stress your dealership with the ability to to their students that a 90-day-old unit make the selling decision will be Wholesale auto auctions do more than has been in inventory for 25 percent of able to see, based on the number bring buyers and sellers together to the model year – a sizeable portion of a of bidders on any particular car, ‘redistribute’ inventory into the right year’s depreciation. Liquidating via the where the market is, on that day, for hands. Most National Auto Auction robust market environment available that car. Other than retail, it is not Association auctions provide a full line at auction will often yield, in a timely likely that the value of that car will of services including auto detailing, manner, sales prices that exceed those increase over time if there was active mechanical repair, body and paint repair, achievable by other means. bidding on the unit. “Wholesale auto auctions do more than bring buyers and sellers together to ‘redistribute’ inventory into the right hands.” 16 autosuccess.biz
  • 17. • Know your market and sell to lane. Good sellers (and buyers) can bank financed leases, would indicate the money. Familiarity with auction usually find an amicable solution to that many dealerships will handle activity in you market area should most problems discovered after the more trade-ins as a percentage of total provide a good measure for the value auction sale. business. Consumers who cannot qualify of both active trade-ins and your for new car financing or who cannot pay grounded inventory. When you send • Get titles in fast. Processing titles new car prices for whatever reason, will your cars to auction, or when you quickly and correctly is necessary to be looking for a good deal on a late- are buying at auction, there should completing the auction transaction. model used car. With the decline in lease not be too many surprises. Auction Auctions work very closely with originations and more conservative values are surprisingly consistent. the DMV to make sure your cars are residual values, savvy dealers will ready to sell. However, unless the need to actively work the market to • Identify your cars to the auction title is at the auction, the rest of the find the right cars to meet the needs of early so the auction can attract transaction is delayed. their customers. The auto auction is the buyers to your lane. Auctions have a likely resource for redistribution of late tremendous resource in the database Car dealers who take advantage of the model trades back to the right franchised of buying and selling activity in your resources available from their local dealer’s used car inventory. market area. They can, for example, wholesale auto auction will be in the notify buyers who have shown best position to get maximum return And what about the value of the trade-in interest in red Corvettes that you from their dealership investment. Over talked about earlier? At your local auto are selling red Corvettes in the next two million vehicles that received some auction, buyers and sellers establish the auction sale. level of reconditioning were analyzed to wholesale market value for cars like establish the value of those services at you trade, each week. Whether you • Be accurate on announcements the wholesale level. Off-lease vehicles need to sell that trade-in or buy fresh and diligent with vehicle disclosure. (primarily from manufacturer and inventory, auctions provide a full-range For the most part, sellers who try to captive finance sources) returned $1.77 of services to support the success of hide flaws in the cars they bring to for every $1 spent on reconditioning. your dealership. auction are recognized as that type Much of the gain realized was the direct of seller. Bids on their cars are often result of the efficiencies of volume at the lower to account for their pattern as auto auction facilities. a seller. On the other hand, sellers who are straightforward with their As a final note, the significant shift vehicles attract the best buyers. in the type of transaction handled by Don Elliott is the Vice President of most dealerships over the last two years Marketing and Business Development • Work with buyers on arbitration will change the role of the wholesale at ADESA Corporations. He can be issues. Not all vehicle flaws are easy auto auction in the future. The general contacted at 866.429.6848, or by email to identify prior to the sale or in the move away from leasing, particularly at delliott@autosuccess.biz. “At your local auto auction, buyers and sellers establish the wholesale market value for cars like you trade, each week.” august 2003 17