AutoSuccess Jan04


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

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AutoSuccess Jan04

  1. 1. Get your own personalized Louisville Slugger Baseball Bat free! pg.15 .biz Herb Chambers Sells 600January 2004 Vehicles Online You Are the CEO How to Forecast PERMIT NO 879 Your Success LOUISVILLE KY Demo Drives for Success PAID Louisville, KY 40202 US POSTAGE Suite 202 PRSRT STD 756 South 1st Streeta division of Systems Marketing, Inc.
  2. 2. manager I N S I D E driventeam operation uccessrevenue automobil 6 The Art and Science of Managing Your Managers solutions Steve Hiatt 7 You Are the CEO Mark Tewart profitprofessional10 Demo Drives for Success Brian Ankney11 Sales From the Internet: Search Engine Optimization sales Dennis McDonough12 May the Forces Be With You Brian Manzella14 Implementing Change Within Your Sales Team Terry L. Isaac16 eDealers of the Year: How They Did It Patrick Luck18 Herb Chambers Sells 600 Vehicles Online Sean Wolfington22 How to Forecast Your Success George Jackson23 The Effectiveness of Jingle-tising Jeff Fishel24 A Word From the Coach, Part 1 Joe Verde26 Managing Your Time Brian Tracy28 Now Is the Time to Plan Fran TaylorCover Image: Herb Chambers, featured this month on pages 16 and 18 A cure won’t just save children. Mary Tyler Moore It will save childhoods. International Chairman These kids live with 4-6 insulin injections daily. Plus, they face the threat of blindness, heart attack, kidney failure and amputation. Their only hope is research. The Juvenile Diabetes Research Foundation is closer than ever to finding a cure. Help us help them. Call 1.800.533.CURE or visit dedicated to finding a cure Psalms 37:3-5 Patrick Luck, Editor & Publisher inventory Success Driven Solutions • Trust in the Lord, and do good; so Susan Goodman, VP of Operations you will dwell in the land, and enjoy • security. Lindsay Porter, Copy Editor Take delight in the Lord, and he will 756 South 1st Street, Suite 202 • give you the desires of your heart. Louisville, Kentucky 40202 Courtney Hill, Advertising Services • Commit your way to the Lord; trust in Toll Free: 877.818.6620 Kelley Humkey, Advertising Services him, and he will act. • Facsimile: 502.588.3170 In God We Trust Web: Thomas Williams, Creative Director dealer • 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 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.
  3. 3. Leave nothing to chance Because you’re not playing games Experian Automotive helps you drive profits with information that connects cars and customers. Our solution suites are powered by the deepest, most extensive databases available anywhere, covering almost 450 million vehicles, 98 percent of all U.S. households and nearly 205 million credit-active consumers. • Vehicle History: Drive pre-owned vehicle sales by giving your customers detailed historical information and title protection • Loyalty Programs: Build profitable relationships by reaching customers with exactly the right message at precisely the right time • Prospect Campaigns: Acquire new customers by knowing who your prospects are, where they live, how to reach them and when they’re ready to buy • Market Research: Market effectively with information that tells you how the automotive market stands today, where you fit into it and in what direction it is headed • Credit Solutions: Give credit where it is due and make sound lending decisions with the most accurate and timely credit information available Stack your deck and call Experian Automotive today at 888 409 2204. Cars. Customers. Connected. By Experian Automotive. SMVisit Experian Automotive at NADA 2004, January 31 – February 3, Las Vegas, Booth #5735
  4. 4. sales and training solution SteveSteve Hiatt By Hiatt The Art and Science of Managing Your Managers To get your team these meetings are designed to do that. take care of this for you. They want the team on the right track Once these meetings become normal, to succeed. We aren’t always too subtle in you have to set the your managers start to speak up and ask these meetings and the managers really get course with your questions or even challenge. Some of the into keeping everyone accountable. managers. As an best ideas and management strategies canowner, GM or GSM, you have to be willing come out of these types of forums. Steve Hiatt is the General Salesto be involved in setting the course if you Manager of Hiatt Pontiac GMC, Hiattwant to have specific results. You can also hold people accountable Outlet and Hiatt of Auburn. He can be publicly for what they agreed to or their contacted at 866.265.5616, or by emailThe people you hire for sales management assigned goals. Many times other managers at finance are often self-starters, that iswhy you hired them in the first place. Theseteam members are often not interested incorrection, they are usually giving it, whichmakes coaching them harder. It is your jobto get everyone on the same page.Steps to keep your team on track:Have a plan.Have any plan, as long as it is written downand measurable. Know what you want fromthe team management, and be prepared totell them specifically what you want. Yourmanagers will run their own course withoutyou having something specific for them.Express it.Let the management team know whatyou expect from them. Give them resultsyou will demand. Whether units, gross, oremployee retention, if it isn’t written forthem don’t expect them to know.Adapt and adjust.Don’t just accept the results or the feedback.Use it for change. Figure out what is goingright or wrong and then plan activities tochange the results. Have a consistent toolfor measuring; it can be the statement, adaily operating control or floor log, justcheck it on regularly scheduled intervals.Praise.Give positive feedback. Be genuine andsincere. You don’t need to do back flips onthe showroom floor, simply find somethingthey did and tell them. Don’t just say“Good Job!” Address something specific soyou don’t sound trite. Try something like,“Sue, I watched how you handled Mr. andMrs. Johnson’s objections in finance, andyou did a good job of building value.” Thisway your employee knows you are sincere,because you sited the situation. See us at NADA ConventionHave a forum.Get together with your managers on a regular Booth # 5463and planned basis. Pick a day, set timeaside, hold phone calls and interruptions.You need time to communicate and 6 successful solutions at
  5. 5. sales and training solution Mark Tewart By Mark Tewart You Are the CEO Are you the CEO of follow-up to the point that it is being done your company? If while you sleep or are on vacation. you’re a sales person, and you answered no Have you set up affiliate programs with to this question, think other businesses to share customers andagain. To be successful you must have a CEO provide an introduction to one another?mentality. All successful sales people view Example, “Who does business with whom Ithemselves as a business within a business. want to do business with?” Ask that questionNever forget that the company you work for first to think of businesses that you can setwrites and signs your check, but you fill in up reciprocal agreements with to provide athe numbers. Always take responsibility for value proposition to their customers witheverything. You are the CEO. enough leverage so they will want to call, fax or email you to get what you sell.What does a CEO do?First of all, a CEO designs a marketing Most businesses utilize one-stage marketing.strategy. How do you get your business? This requires running an ad and askingWalk-ins, in-bound phone calls, repeats, someone to buy. For many sales people,prospecting, networking, referrals, be- this is expensive and not effective. A betterbacks, affiliate marketing programs, strategy is to form two or three stagedatabase mining, database swapping, marketing techniques. You are asking aniche marketing, seminars, websites, customer to respond that they are interestedemail responses with auto responders and and want more information. Here are somesequential auto responders. Do you have at examples: Give a be-back cd to everyleast one strategy for utilizing each one of customer who does not buy and ask them tothese? Many people may not even know play it on the way home. The cd should havewhat many of these items are. The bad news two to five minutes of information that thanksis that you are way behind the top businesses them for the opportunity and provides themin the world, but you can catch up and even with specific reasons why they should buypass the most productive sales people with your product from you, at your dealership.dedicated strategy and smart actions. Give the customer an incentive to call you back. Arrange with a local restaurant thatTop sales people gain and maintain their you will provide a coupon to every customerresults through many avenues beyond walk- who shops or services with your dealership,in traffic. When you are new, you spend 80 an offer for two-for-one at the restaurant.percent of your time gaining new customers In return, ask the restaurant to also rewardand 20 percent maintaining them. As each their customers by giving each customer amonth goes by, your goal will be to reverse coupon with their bill that provides a specialthe time used to 80 percent maintaining offer from you, with enough leverage for thecurrent customers and 20 percent gaining customer to respond for more ones. To do this, you must develop a Provide seminars for local groups on themarketing web with multiple streams of subject of, “How to buy a vehicle and not getlead generation. Lead generation = dollar ripped off.” Do you know where the last 10creation. customers who have bought from you work and how you can set up automobile buyingIf floor traffic dries up, you will have an programs with their employer? If you letexcuse not to sell vehicles. From now on, your mind expand, your wallet will follow.excuses are not allowed. What is yourstrategy for walk-ins? Do you have a You have two choices, you can use excusesprocess? Does anyone besides you follow up like, “My managers won’t let me dowith unsold customers? If you TO in person anything,” “I don’t have the time,” “I have towhy not TO on the phone? Are you utilizing make money right now,” or a million othermonthly planners or productivity software excuses. Or, you can think of your businessthat allows you to automate your follow- as a business and become the CEO withup of sold and unsold customers by phone, a long-term, committed strategy to growmail and email? Do you have a monthly expeditiously.newsletter or, better yet, an email newsletterthat reaches your customers unobtrusivelyand at zero-cost? There are companies that Mark Tewart is the President of Tewartwill set up auto responders with pre-set Enterprises. He can be contactedmessages to be sent at certain intervals to at 866.429.6844, or by email atyour email list. This automates some of your 2004 7
  6. 6. sales and training solution Brian Brian Ankney By Ankney Demo Drives for Success In the November through your test drive route. Encourage customer through service. Sell your service issue, we discussed your customer to hit the accelerator and department. Mention the exceptional quality added value for your take turns quickly. The test drive builds the of work and continuous training. Now as customers so that desire that will get this deal today. you pass the service writers, introduce your they can feel good customer to their service writer. Get a cardabout buying at fair gross profits. Now If there is a spouse, get the spouse to drive for your customer and explain that theirwe will cover how to add value for your also, insist, “I would not be comfortable service writer has different days off thancustomer during the demo drive. selling your family a car that you, yourself, you, so they will always have someone they don’t feel safe and confident driving. know to help them with any of their needs.The demo drive. Just try it out and make sure that in anYour customer is in the passenger seat, and emergency you would be okay driving it.” The trade are in the driver’s seat. You pull out on Once the spouse has driven, get the main After the service walk you should returnto the street and quickly accelerate. Now driver back in the driver’s seat. Get them with your customer to your desk. If thereis the time to use the information your excited, again. Solicit four or five positive is a trade, collect the information needed.customer gave you during step two, the statements from them and move on to the If your customer wants to go with you toqualifying step. Demonstrate the features trial close. get the VIN and miles, do not insult theiryour customer told you that they wanted car. Everyone wants to get the most forin their next vehicle. Show them the dual The trial close. their trade. Make statements like, “Boy thisclimate control, rear air, louder stereo and/ Every sales person must design their own is a nice car. It has gone a lot of miles foror seven-passenger seating. Prepare them personal trial close. It should look and feel you. You sure got your moneys worth onto experience the intense acceleration, natural. You must be confident in your this car.” Let them feel good about their oldaward-winning braking distance and words, and never forget this step. This is car so they can buy their new car from you.turning radius. Pull your customer into where you get your customer’s permissiona parking lot and stop the car. Finish to sell them a car today. Reiterate your Now you have all the information neededdemonstrating the bells and whistles and customers needs and wants and how this to desk a deal and a customer that is readythen rapidly accelerate to 15-25 mph and vehicle fulfills and exceeds each and every to buy a car. Remember that a sale is like ahit the brakes. Use statements like,”feel one. Use, “You said,” statements like, “You tower. Every step is built on top the previousthat acceleration,” and “it’s great to be said that this stereo is exactly what you steps. If you do a weak demo and don’t sellable to stop this quickly in an emergency.” want and that trunk will definitely fit work a certain car, your customer will flop outCut the wheel all the way, and drive the car stuff. You said that the driver’s seat moves of negotiations and go home to think/shopin circles. Comment to the customer on the and sets up just the way you want and that your competition because any payment isvehicles impressive turning radius. this is definitely the color. I agree with you. too much for a car that is not the one. The I think that we have found your next car. same is true of the trial close. If you do aYour customers are looking for a vehicle There is just one thing left to do. I guess weak trial close, your customers will wantthat will fit all of their children and get them the only thing standing between us doing to think it over and leave. Your managerto work and pull their fishing boat. Lots of business today is price…like it is with most needs a strong trial close to set them upvehicles fit these needs. Some cost more and people…Right?” Your customer will either for the T/O. Ask for help in the areas yousome cost less than yours. Some have better say yes, with some small stipulation, “Well feel weak. Your managers can role play andleases and lower incentive rates. Some have your manager is going to have to give me help you improve your income.access to lenders that buy deeper than those $5,000 for my trade,” or give you a firmyou work with. objection*. * Firm objections are objections that mean that even if a deal can be reached thatDesire will sell this car today. Desire will Take your customer’s yes and their it cannot be done today or tomorrow. Ifget the higher payment, longer term or stipulation and turn them into a second trial you believe you can’t get it today…youadditional $1,500 down. Desire will get close statement. “So if we could get all the are right, no matter what the objection.your customer to call their grandmother into figures, including your trade, agreeable, You need help, so finish the drive andthe store tonight to cosign. Acceleration, YOU WILL TAKE DELIVERY OF THIS service walk and go to desk for help. Webraking and turning will create this desire. CAR TODAY?” You need a yes here. Your will discuss firm objections further in anYou have demonstrated each during the customer will say sure or give you a firm upcoming Now exit the vehicle, and invite your objection*.customer to drive with a statement like,“Alright, I guess my turn is up. Now it is The service walk.your turn to drive. You are going to love the As your customer drives back into theway this car drives.” Have your customer dealership, direct them to park in the soldaccelerate rapidly and brake. Have them row. Exit the car and say, “Follow me.”cut the wheel to see the incredible turning Walk ahead so that your customer must Brian Ankney from AutoClick can beradius. Ask your customer, “What do you hold on to the keys. Show your customer contacted at 866.247.9587, or by emailthink?” Get them excited. Now instruct them into the service department. Walk your at 10 visit us at
  7. 7. marketing solution Dennis McDonough By Dennis McDonough Sales From the Internet: Search Engine Optimization There are many If they are slow to load, either modify Do the home page first and then each things you can do the pages to be faster, select another additional page. Getting listed in the to help your website page or look for a new host. Speed Google database usually takes four be listed among the is very important to your Google to six weeks but can take over three top search engine ranking. months. Be patient, don’t submit your rankings. site pages every day, only submit 5. Work these top five phrases into individual pages every thirty days.Search engines include Google, Yahoo, the website titles, ‘meta’ tags, ‘alt’MSN, AOL, All the Web, Find What, Alexa tags and content. Really look at 7. Monitor your words and phrases onand Teoma, to name a few. These sites fall the content. A good search engine the Google site. Do monthly checks tointo two classes, spiders or directories. optimization firm will make copy see where your site ranks.Spiders use programs to search the Internet suggestions to find sites through links. Directories take Search engine optimization is not asubmissions, taking only the sites that ask This optimization needs to be done on one-time fix. Monitoring and updatingto be listed. Most directories require you a page-by-page basis. Do not repeat a your site pages as the ranking goes upto pay a subscription fee to be listed in phrase just to get it used, if it is too and down should at least be done on athem. Most spiders are free, but you have frequent in the content your ranking quarterly get the spider to find your site. Google will suffer. Do not try to get all theis the biggest spider, and Yahoo is the phrases in one page; that does notbiggest directory. help either. Dennis McDonough is the President of Bit-Concepts. He can be contacted atGoogle is the most popular search engine. 6. After completing the modifications, 877.354.1998, ext.202, or by email atIt is a spider and does not cost to be listed. submit each modified page to Google. provides the results for over 75percent of the searches done today on theInternet. Yahoo, AOL, MSN and othersuse Google for some of their results.Google has special rules to be followedfor an effective listing on their site. Theserules change on an irregular basis andshould be reviewed regularly. Log 200-500% more opportunities!The time to start thinking about searchengine optimization is when your site Leader in Showroom Traffic,is being developed. A good websitedeveloper will understand Google’s rules Lead Management,and incorporate them into the site design. and CRM Software Track all outgoing real-time showroom & desking controlUse these seven steps to achieve a good phone activityranking on Google: internet lead tracking system 1. Identify the words and phrases 2-way active DMS integration that your customers would use to find you. A single word does not usually complete in-store training work well; there is just too much Minimize data entry competition. with license scanner drivers license scan, worksheets & credit bureaus 2. Check the phrases for popularity, and select the top five most searched. 3. Enter phrases on the search track more engines to see if they return sites for The Higher Gear Group, Inc. companies like yours. bring back Hoffman Estates, IL 60195 4. Select specific pages to feature more tel 866.873.0029 fax 847.310.3196 each phrase. The pages you select should have static content. Use the home page and directly link from the close home page. Check these pages for their load time. They should load in more call for a FREE consultation and demonstration less than 15 seconds on a dialup line.january 2004 11
  8. 8. golf solution Brian By Brian Manzella Manzella May the Forces Be With You There are many the the grip end of the shaft, into the wall, pivot forward, around your spine, you can movements that a the clubhead would go down the wall and ‘drop’ the club right on the ball (pic 3). Or player must perform forward toward the ball and target (pic 1). drag it down on the ball. Or push it. in an efficient golf swing. But there Dropped, pulled or pushed STRAIGHT The second reason you need the rotatingare only two forces that the golfer has down, the clubhead will go forward also ‘around-ward’ force is for speed. Simply,to create. They must create a downward if there is a pin at the grip end of the shaft. the faster you unwind (RPM’s) the fasterforce and a rotational or, what I like to The key is that there is only a downward the clubhead will, an ‘around-ward’ force. Poor players force at work in this ‘pinned’ example.add directional forces such as forward and In the golf swing there are two pins: the The ‘around-ward’ move most closelyupward in a vain attempt at making the primary one at the left shoulder where approximates a left-handed frisbee toss.ball fly toward the target. If you can learn the left arm attaches, and a secondary Just go out to the store and buy a basicto create the “Two Forces” and eliminate one at the left wrist. So with or without model frisbee and practice throwing it leftthe unnecessary other forces, you can wristcock, the golfer gets two for one with handed. Just stand 90 degrees to the target,simplify your swing and maximize your the correct application of a downward like your golf stance, unwind and fling thatdistance and accuracy. force. The clubhead will go downward frisbee. Just like in the golf swing, ‘over- and forward. acceleration’ of the left arm, by the leftLet’s start with the downward force. arm, is a disaster. Allow your torso to dragDoesn’t there have to be a forward force? The ‘around-ward’ force is necessary for your left arm around and flail your left armThe answer is no. If you put a golf club two reasons. One reason is transportation. off of your chest (pic 4).against a wall, horizontal to the floor, and Transportation? Yep. If you make adrop it, it falls straight downward due to ‘normal’ backswing and let the arms/ The only difference in the frisbee pivotgravity. The same happens if you pull it hands/club unit just fall from the top, and the golf version is the plane. Thedown the wall or push it down the wall. It the clubhead will hit the ground several frisbee plane is horizontal to the ground,falls straight down. But, if you had a pin in inches behind the ball (pic 2). But if you and the golf plane is on an incline. You 1 2 3 4 12 subscribe today at
  9. 9. continuedcould throw the frisbee toward the ground, tilting’ as the release occurs (correct pic 6, to understand the two forces in the golfon the target line, a few yards forward on incorrect pic 7). swing and you should be able to applythe ball, to get the feel. The change in them to your swing effectively. Just asplanes necessitates the tilting of your spine This ‘around-ward’ rotation of the golfer, important is the elimination of the forcesboth more over and slightly to the right, called the pivot, creates a resultant that are not either downward or ‘around-just like in the golf swing (pic 5). outward force, just like the one created ward.’ The reason the great players look by twirling a rock on a string (pic 8). It like they are doing less than you are, isThe combination of the downward force should be obvious that poor players, with because...they are.and the rotational force can be exercised their upper body forward lunges and lifts,by skipping rocks. Rock skipping includes disturb the orbit of the clubhead, much asthe right arm throw (downward on plane) any non-rotating force would disrupt the Brian Manzella is a PGA Teachingand the ‘around-ward’ pivot with a titled twirling of the rock on a string. Professional. He can be contactedaxis. So many golfers have trouble with at 866.873.0036, or by email atthis all-important detail. The golfer must With just a frisbee, a hand full of rocks, or visitbe able to create this throw without ‘un- and a piece of string, you should be able 5 6 7 8january 2004 13
  10. 10. sales and training solution TerryByL. Isaac Terry L. Isaac Implementing Change Within Your Sales Team The goals that you Allow your team to have some input on Test the process you’re changing, you will set will result in the the new goals, it will give them a feeling gain all the support you need when you game plan you put of being a part of the goal, and they need to show them how the change will benefit into action. Most buy in. This business is full of self-starters them and the dealership. of the goals you set and bringing a team together might notwill require change. For example, if your be easy. One way to get your goal across Set the standard, it’s your job to makegoal is to improve CSI, it will require a to your team is to break it down into two changes as needed for the improvement ofchange in how you handle your customers phases. Start with the objective of your operations. Management is leadership, andand will need to be evaluated to put a new goal. If your goal is to increase sales, start leadership is leading the way, not askingplan of action in place. After the plan is with the first phase of a sale. The first phase for directions. Change is a good thing; itlaid out, you must coach your sales team is a lead, all sales made start with leads, ups, keeps your team growing and preventsto implement the plan, it must be clear so sales calls, factory leads, etc. As you start, complacency. Sales people get into a routinethe team can understand the procedure to form your flow chart, this is a good way to and don’t increase their production, changefollow. structure your plan. Show how leads are their routine and change their results. currently being handled and better ways ofMany people resist change because of their handling them, whether it’s sales calls with If a sales person sells below average andcomfort zone. Without change your goals a new word track or handling ups. This will you do nothing to adjust their performance,will be impossible to achieve, if there is no increase leads. the next month the same result is repeated.change then you will only repeat the same Implement ongoing training and coachingresults. Communication is key for getting Take one step at a time. People can’t handle to improve the production.your team to change. You need to make a lot of change at once. It takes patiencesure you clarify the changes. The more and time to get people to change but never An excellent goal is to implementclear the change, the more likely your stop trying, always believe it will happen. an ongoing training program for lowteam is to respond. Change is a process Explain the importance of the change to performance, this goal of improvement hasand it takes time to change peoples ways. your organization and the rationale for it. two benefits. 1. It will increase sales, which is an every day goal, and 2. It will increase retention. Remember to use the flow chart for all of your goals and to break them down to communicate to your team. Have a kick-off meeting/training session to get your plan into action. You will need to have your training set up over several weeks to teach the new process. Set up training materials to present your program in a professional manner. This will give you credibility with your team and make it easier for them to follow and understand the program. After providing the training for the change you are implementing, you need to have feedback on an ongoing basis. Your sales people all learn at different speeds and might understand in different ways. Tracking the results of the new process is the only way to show progress and ROI. The information you track will be important for modifying your plan of action. Management must take action and set goals from the top down. If everyone understands the new goals and why the changes are being made, the whole team will work together toward improvement. Terry L. Isaac is the Corporate Sales Trainer for the Neil Huffman Auto Group. He can be contacted at 866.265.4680, or by email at 14 contact us at
  11. 11. AutoSuccess, the only sales-improvement magazine, has teamed upwith cross town Louisville Slugger to bring you the best double playin the business. Order your 1 year subscription to AutoSuccess at oureveryday price of $75 and get your own official, personalized LouisvilleSlugger Baseball Bat FREE!** shipping and handling not included. CALL TODAY! 866.269.8604
  12. 12. feature solution Patrick Luck By Patrick Luck eDealers of the Year: How They Did ItCreating a successful website is a it is our number one marketing medium. purchase program’.possibility for all dealerships. To have The Web is our number two or number one Red McCombs: Mass bulk multi-mediaan award winning website, you must source for phone calls into our dealerships. emails and search engine placementknow how to accomplish it. The dealers We know because we measure it. We sell services. We also put our URL on all adsaward winning sites for 2004 sold 60-600 over 600 units a month, we drive revenue and everything with our name on it.additional units a month, while driving to service, parts, F&I and more. Courtesy: Search engines, emailrevenue to all profit centers. A great way Tasca: Over 60 percent of our customers marketing, local markets newspaper sitesto achieve this success is to learn from visit our website before they come to and our traditional marketing.others that are already using their site to the dealership. If the majority of our Sheehy: Make sure your website is onsell units and drive profits. The winning customers research on the Web it makes ‘all’ dealership material and that you’re ondealers were asked questions to show sense for us to be there. Seventy-two top of the search they achieved these positive results. percent of our phone traffic is Web basedThe interview responses are listed to help on our phone traffic reports. It is a critical Question 4: What type of people do youwith successful website techniques. marketing tool. hire? How do you train and pay them? Red McCombs: Absolutely. We sell anQuestion 1: What type of website additional 260 units a month, generate Herb Chambers: Sales people, notshould a dealer build? What are the key more sub-prime business, create a lot of computer geniuses. I can teach a great salescharacteristics? service appointments, and we sell parts person technology in a few hours, but it takes online as well. months to teach a computer programmer toHerb Chambers: Remember to build a Courtesy: The majority of our phone be a great sales person. We have an in-website for your customers, not you. When traffic is from our website, and we sell an house, nine-day training program. Pay?evaluating content, do so with the eye of a additional 84 units a month, not including The same as showroom pay.consumer...not a dealer principal. Less the extra phone and showroom traffic. Last Tasca: We hire people that are good onfluff than they get in the print ads but more month, we became the second biggest the phone. We use a company to help ourcontent including product information, Chevrolet dealer in the country and the strategy and train on the process, and wepricing, financing, specials, etc. Web was a critical part of that success. have them in two days a month to keep upTasca: The site must be simple and Sheehy: Yes. We get a number of calls to speed.built around the customers needs. A key and walk-in customers who say they were Red McCombs: Experienced car salescharacteristic is information, not just price on our site or they bring in our discount people. The best on the floor, will be thebut information that builds value in your certificate. Overall, the Web is also best on the Internet. We have phone scriptsdealership and products. We also highlight directly responsible for 250+ incremental and weekly sales meetings. They get paidthe advantages of our dealership and our sales a month, and our cost per sale is less 17 percent of total billed deal.certified pre-owned program. than $150 which is better than our other Courtesy: People with sales experienceRed McCombs: Ease of use is the marketing mediums. in car sales, very hands on training andkey. Engage customers with an interactive support for the first thirty days. We trainexperience that encourages them to contact Question 3: How can you market your them on the process, phone scripts andyour dealership. website? objection guides. They get paid on units,Courtesy: Our goal is to create more gross, with higher percent when CSI isleads, so we have many different ways to Herb Chambers: Your URL must simply higher.gather customers contact information to become part of all your other traditional Sheehy: We like rookies and train themincrease our conversation ratio to ensure forms of advertising. It needs to be on all from scratch on the Internet process formore high quality leads for less cost. Our print ads (including help wanted), radio, two days, then continue onsite training,current conversion ratio is 21 percent. TV (if applicable), stationary, business and we work deals with them in the store.Sheehy: Searchable inventory, pictures cards, doors, etc. Everywhere, period. Basically, lead by example. We pay salary,of new and used vehicles, model reviews, Tasca: We have included it in all of our commissions, plus incentive bonus.payment calculator, MSRP and invoice traditional marketing: billboards, TV, radioprice, comparisons, trade-in information, and print. We also do online marketing Question 5: What is your processphone and location information. including email marketing, banners on for handling leads? What is the most high traffic sites, and we dominate the important part of the process?Question 2: Is the Web a good marketing search engines. We also market to largemedium? companies by offering them our ‘fleet Herb Chambers: Email, phone and purchase program’ and to OEM suppliers showroom. The bottom line is to sell theHerb Chambers: On a cost per sale basis, by emailing them about our ‘vendor appointment and follow up until they buy. 16
  13. 13. Tasca: We automate a lot of the emails for them as well as we handle our Internet yet diminishing part of our electronica 90-day period so our people can spend leads. marketing mix. Our website is definitelymore time on the phone and selling cars. Courtesy: We handle our phone and our best source of leads, the manufacturersOur main focus is to set an appointment. Internet leads in our BDC/Internet second and third party last.Red McCombs: Internet sales force department, and leads are logged into our Tasca: We do not use any third partyreceives the leads and then makes contact CRM system, which automatically sends leads. They have a close percentage ofwithin 30 minutes. Internet coordinators out multi-media emails over a 90-day two to five percent. Our website leadscontinue with phone calls until they set an follow-up cycle. The goal and the process cost a lot less and have an average closingappointment. are the same, to set an appointment. percentage of 20 percent.Courtesy: I personally distribute them or Sheehy: We are going to apply a similar Red McCombs: I would like to cut themautomatically ‘round robin’ the leads in process to our phone leads. out, but can’t as of now. We have reducedmy absence. The most important part is our dependency on them, and our websitethe phone to sell the appointment and to Question 8: Do you do any email leads have a much higher closing ratio andfollow up via email and phone. marketing? lower cost per sale.Sheehy: Speed and answering the Courtesy: I don’t like them, but we still usequestions leads ask. Herb Chambers: Yes, regularly. It is them. Our website generates the majority results and cost effective if done properly. of our leads, and they have three to fourQuestion 6: How do you handle Tasca: We have hundreds of pre-packaged times higher closing ratios. Eventually, wepricing? What is your gross profit? multi-media emails that we send for will probably get rid of all of them. We are different times of the year. It is the same our own buying service in our market.Herb Chambers: We make our program as direct mail except there is no cost for Sheehy: Our best source is our own site.more about the process and product than the mail and customers can build a car and We want to reduce third party leads to asthe price. Our average gross is higher apply for credit right from the email we few as possible, They cost more and ourthan the showroom floor in the stores with send them. website has three times higher closingInternet sales people in place for more Red McCombs: Yes, lots. It is the cheapest percentage.than six months. way to reach the masses. Every week weTasca: We have a menu pricing policy. run a different special and send it to all of Bonus Question: What do you think theWe have a fair profit built into every our leads generated from the website and future holds?vehicle. Our pricing policy is the same third party lead generators.for a showroom customer. We pay on CSI Courtesy: Yes. It helps us attract more Herb Chambers: We have gone fromrather than gross profit. customers for a lot less cost than other selling 100, 200, 300 and, now, up toRed McCombs: Mystery shop all of our types of marketing and within a few clicks 600 units a month. If the trend continuescompetitors, and we ask for a fair profit. thousands of people can know about our the future looks great.Our average is $1,850 per unit. weekend sale. Tasca: The dealers that sell a lot of carsCourtesy: We don’t sell price. We sell our Sheehy: Mostly broadcast emails on and satisfies customers will win. In orderprocess, people and products. Also, our specific incentives or rebates. We are able to grow and stand out from the competitiongoal is to generate an appointment and to capture some deals where people were a dealer needs to be successful on allthen we sell the car on the showroom. Our not ready to buy now, and it does not cost fronts: showroom, Internet, phone, BDCs,gross is $2,200 a copy, which is the same us any money. service, parts and body shop. The Webas our showroom average gross profit. plays a role in everything.Sheehy: We give the exact price of what Question 9: What numbers do you Red McCombs: We have more thanthey are looking for then below that give a measure? doubled our Internet business in the lastlower price alternative. Our average gross 90 days and believe that more people areis $1,700. Herb Chambers: Everything, it would using the Web to do business. The future be easier to write what we don’t measure. looks promising.Question 7: How are you handling your For example, we measure lead volume, Courtesy: Dealerships will start shiftingphone leads? response time, closing percentage, cost more of their advertising to market where per lead and cost per sale. the majority of customers start theirHerb Chambers: We have a similar Tasca: Total leads, appointments, sales, purchase process, online. Until then weprocess for our phone leads. Our main deliveries, cost per lead and cost per sale. will continue to take advantage of the factgoal with both types of leads is to sell Red McCombs: Leads, closing percentage, that a lot of our competitors don’t. We usethe appointment and to follow up until sales: daily, weekly and monthly. the Web to sell more cars for less money.they come in. We also capture their email Courtesy: Response time, appointment Sheehy: Turning our Internet departmentsaddress to automate some of the follow-up percentage, show percentage, closing into BDCs where we have dedicatedso each person can handle more leads. percentage, average gross and CSI. people and processes to handle all typesTasca: All of our incoming phone calls Sheehy: We measure everything by of inbound leads along with follow-up,run through our Customer Relationship source, by store and by sales person. renewals and other marketing activities.Center along with our Internet leads. It is avery similar process, and it works great to Question 10: What is your view of third Patrick Luck is the Editor and Publishercombine them. party lead providers? of AutoSuccess Magazine. He can beRed McCombs: Not very well. They contacted at 866.802.5603, or by emailwould probably improve if we handled Herb Chambers: A somewhat necessary, at 2004 17
  14. 14. marketing solution Sean WolfiWolfington By Sean ngton Herb Chambers Sells 600 Vehicles Online The following is to do to reach their goals. Some parts of sales experience and with great phone and a summary of a the strategy they created and what you may follow-up skills. They are on the same pay case study on Herb want to customize for your dealership are plan as the other traditional sales people. Chambers. listed. 7. Process: Herb Chambers defined theirHerb Chambers sells approximately 2. Technology: Herb Chambers Internet process for handling opportunities600 units per month from their Internet implemented a complete digital marketing by mapping out their process for turningdepartment alone. system which included a custom website leads into appointments and sales. They that promotes all of their profit centers are selling approximately 600 additionalDigital marketing strategy generates the and drives more foot, phone and Internet units per month at a higher gross profit thanmajority of their phone traffic to their traffic. The system includes a prospect some of their showrooms because theydealership. management tool that automates a lot of do not sell price, they build value in the the email activity so their team has more dealership, people and product, and, at theHerb Chambers drives more revenue to time to use the phone and to sell cars. same time, they highlight the advantagesthe service and parts department through The most important dynamic technology of doing business with them rather than theeMarketing. they use are the multi-media buzzmails competition. that help drive traffic through bulk email1. The strategy: Herb Chambers began marketing and selling new prospects and 8. Pricing: Herb Chambers realizes thatby getting together with their leadership by automating the follow-up of their selling cars on the Internet is not aboutteam to create an eCRM business plan customers throughout their ownership giving cars away.that outlined their goals and strategy. This cycle. Lastly, they have offices equippedstrategy boot camp was facilitated by their with a PC, printer and digital camera for “The mistake some dealers make is thatdigital marketing vendor, and it helped taking pictures of inventory. they sell the price rather than buildingthem create a detailed blueprint and action value…in the end, if we do not ask for aplan that outlined everything they needed 3. They purchased website addresses fair profit it is impossible to get one,” said (URL/ISP): They purchased the URLs and Jay Gubala. “We put together a pricing purchased all of the names they thought philosophy that is competitive but that also customers might type into their browser preserves our gross profit.” to find them. Here are some examples for you to buy:, 9. Training: They partnered with a company that initially trained everyone in the department on the phone, follow-up 4. Marketing their website: Herb and sales skills they needed to increase Chambers conducts bulk multi-media appointments, sales, gross profit, CSI and email campaigns, and they are ahead of loyalty. their competitors on the search engines. They also add their URL to all traditional “The key to the training was to develop media. They put it everywhere their name their skill and confidence and this is Heard the buzz? Find out for yourself what it’s all about. CarChip is, including their current documents, accomplished through repetitive practice, is “a useful tool for the professional,” says one service manager. TV, radio, print ads, dealership collateral videos and hands on experience.” “Technicians dealing with intermittent issues can program CarChip to monitor suspect circuits, and then return the vehicle to the customer.” material, business cards, repair orders, license plate brackets, billboards, etc. In addition, Herb Chambers has a very It’s affordable, so there’s no need for large deposits. And once your customers find out about it, they may very well want one for successful nine-day training program for themselves! Attractive packaging and full-color point-of-sale display 5. Referral service: Herb Chambers goal new hires. help make the sale—adding to YOUR profits! was to reduce their expenses for third party Monitor any 4 out of 23 possible engine parameters including: lead providers and increase their leads/ 10. Measure/manage: “You cannot manage • RPM & engine load • Fuel trim • Intake air temp • Throttle position • Battery voltage • Intake manifold pressure sales from their own site which costs less what you cannot measure. We measure • Fuel pressure • Timing advance • Air flow rate and have a higher closing percentage. They everything and hold regular meetings to • Fuel system status • Coolant temp • Oxygen sensor voltage eliminated the providers that were not discuss our progress and ways to improve. Plus trouble codes, freeze-frame sensor readings, speed, distance, and accels & decels. Up to 300 hours of trip data—all for just $179! effective and replaced them by increasing Reports give us the information we need, Plugs instantly into OBDII port. Download to PC for their leads from their own site. In the end, the number of leads by source, response detailed analysis and graphing. ner they have more leads and sales and the rate and time, appointment percentage, Ask how YOU can become Win majority are from their site, so they cost a show percentage, closing percentage, cost d eere an authorized reseller! Engin duct Bestew Pro lot less and the closing percentage is three per lead, cost per sale, etc,” said Gubala. N times higher. TM ™AUS0310 6. People: Herb Chambers has dedicated Sean WolÞngton is an Owner of BZ Davis Instruments Internet sales people at every dealership He can be contacted at 3465 Diablo Ave, Hayward, CA 94545 866.297.3152 • who sell the appointment and vehicle. They 866.802.5753, or by email at recruited people with previous automotive swolÞ 18 stop by
  15. 15. AWN inc.automotive warranty network, inc.There is so much more!Automotive Warranty Network, Inc. is the complete warranty claimsmanagement company for all your warranty needs. We offer worldclass claims management, not just warranty processing. In ourPOWERTRAINING experience, we will customize the training for YOUR TMstaff on YOUR computer system in YOUR dealership with amazing results.With our Temp Care service, you have temporary warranty coverage for TMvacations, illness or just plain getting behind. Let us show you how muchwe have to offer and we think you will agree, “There is so much more!”This note is to express our appreciation for the wonderful work you did for us last month. You impressed us fromthe very Þrst conversation we had with Rich to the excellent help you have been since the completion of yourPowerTraining.Due to recent changes in warranty procedures, we found ourselves in need of immediate assistance. We calledJaguar for a recommendation and received your names and phone number. The improvements were next tomiraculous! Unpaid warranties started to get paid by the next day. You far exceeded our expectations in everyway. Then you impressed me further with your, PowerTraining which included far more than just the WarrantyAdministrator training we were expecting. The way you evaluated and held responsiblity for each step of a Warrantyrepair order from start to Þnish impressed us immmensely.The week you guys spent here was a breath of fresh air. You kept every promise you made and more. The training,procedures and operations books you set up for us are incredible and will be invaluable in maintaining the trainingyou provided for us. We have already recommended your services to other service managers and will be happy toanswer any questions for any of your prospective clients. Walter Bacall, Service Manager, RUSNAK/Pasadena 303.703.9143
  16. 16. ADVERTISEMENTprofit solution Scott Scott Joseph By Joseph What Is Your Growth Strategy for 2004? The growth strategy increases your with your customers through average gross per unit because: direct mail to maintain a • It attracts trafÞc that buys the positive relationship and to way you sell. Therefore these motivate each customer toThere are only three ways you can buyers are more trusting and buy now.grow your business in 2004 and only negotiate less. • Running special events suchthree: • It brings in buyers who expect as “closed door sales,” limited 1. Increase your number of to Þnance through your pre-sale prices and so on. customers dealership – which increases • Price inducements 2. Increase the average gross per your Þnance penetration. deal • Over 40% of the trafÞc Wow, look at what can happen 3. Increase the frequency generated will have clear when this growth strategy is of repurchase – get more titles. This makes it much optimized! residual value out of each easier for you to Þt the customer customer into the payment Just look at the math. Let’s keep they want without giving up it simple and say you sell 100 carsRecently, we introduced a completely gross. a month - that equals 1,200 a direct mail strategy to our Let’s say you average $2,000 grosscustomers that focuses on all three To increase your repurchase frequency, per unit and your average customerand delivers an incredible return the growth strategy focuses on: buys once every three years (.33 timeson investment. I’m talking about a • Communicating personally a year).growth strategy that increases yourcustomer base, increases the averagedollar amount each customer spendswith you and increases the frequency Increase Increase your Increase the Total grossyour customers buy from you. your # of average gross repurchase per year customers per unit frequency per customerHow does this unique J&L Growth .333 Strategy work? 1,200 x $2,000 x = $799,200 (current one car (current) (current) every three years)To grow your number of customersyou sell each month the growth 10% Increase 10% Increase 10% Increase 33.1% Increasestrategy does three things: 1. Increases the amount of 1,320 $2,200 .366 $1,062,864 (10 more units x ($200 more gross x (customers now buy = ($263,644 quality ßoor trafÞc in your per month) per month) a car every 2.73 years) in extra gross) dealership 2. Increases your customer (what if) (what if) (what if) (what if) retention rate 15% Increase 20% Increase 33% Increase 83.172% Increase 3. Increases your closing percentage 1,380 $2,400 .442 $1,463,904 (15 more units x ($400 more gross x (customers now buy = ($664,704 per month) per month) a car every 2.26 years) in extra gross)
  17. 17. ADVERTISEMENTprofit solution Scott Scott Joseph By JosephWhat’s the overall Growth Strategy Testing, measuring and analyzing This powerful growth strategy teaches philosophy? lets you determine with pinpoint people how to make the most out accuracy, what your market wants and of their most valuable asset. TheyThe Growth Strategy makes use of a doesn’t want. see Þrst hand that if the mailinglot of simple ideas that are profoundly lists are accurate and effectivelypowerful and easy to use. This J&L Marketing is the only company marketed, they generate more salesGrowth Strategy philosophy is proÞt who has the capability to test every and make more money than any otherenhancement through marketing element of your direct marketing advertising approach has ever done orleverage. efforts. We’ve invested a small will ever do. fortune and developed a program to What is marketing leverage? determine exactly what works best for Make the decision right now to do you. something for your dealership, yourMarketing leverage is getting sales people, your managers and forphenomenal better results for the Where can you go to Þnd mailing you that will produce the “deÞningsame amount of money and effort lists that generate a lot of quality experience” our other customers haveyou are currently spending. One list trafÞc and support this Growth already encountered - the type ofor offer could out pull another by as Strategy? experience that will transform yourmuch as 5 to 10 times. The ad costs business performance and wealthyou exactly the same, but you’re This Growth Strategy utilizes as from this day forward.getting much better results with a many as three completely differentdifferent list or offer. That’s leverage. lists. Because there could be several unique lists, managing these different How testing will help you leverage lists and how they are used is critical your marketing? to maximize your potential.You’ll never know if you’re Because of the highly competitivemaximizing your leverage until you nature of our business, I will nottest all the factors that matter: write today exactly what lists we use. • Test one list against another. However, if you call my ofÞce and • One mail piece against ask for Lisa Wilson at 866.856.6782 another. you’ll discover exactly where we get • One headline against another. these lists, how we’ll utilize them • One offer against another. for your store and why they are so • One day of the week, month effective. or year against another. • One market (geographically) The dealerships that immersed Discover exactly where we get these against another. themselves fully in my proprietary growth strategy lists, how we utilize them, mindset and methodology stated it and why they are so effective, right now.You don’t have the right to tell the was the “deÞning experience” that Call my ofÞce today at 866.856.6782market what it wants. You have to transformed their business performance from 8:00am to 6:00pm EST and ask forask the consumer what they want. and wealth from that day forward. Lisa
  18. 18. f&i solution GeorgeGeorge Jackson By Jackson How to Forecast Your Success The best way to product. Add these together for your total Every F&I forecast must be attainable, grow individually, F&I department income. adaptable and easily monitored. personally and Penetration levels and income averages financially is to Step 6. can be monitored daily, if need be, and set goals with a Divide the total F&I department by the are the best means to measure the successcomplete and thorough F&I forecast. To forecasted units in Step 1 to get the F&I of the department. If you are achievingsay you want to do better and make more PRU. This is the true F&I forecast, as PRU your projected penetration levels andmoney than last year is not good enough. is easier to predict and control than total income averages, then it is mathematically(Neither is saying you want to generate dollars. impossible not to achieve your forecasteda certain dollar amount of F&I income.) PRU. The only possible reason you wouldA forecast should never be dollar based Here is how you would apply these steps not reach the total dollar goal is becausebecause it does not take into consideration and complete an annual forecast. the dealership has simply not sold enoughthe number of units sold, it is incomplete. units. If the unit forecasts hold true, thenHere are six simple steps to setting an Step 1: Forecasted units department income will eventually takeannual forecast for the coming year. New Cars 1200 care of itself. Trucks 1500Step 1. Used Cars 1300Find out how many units each sales Total Units 4000manager is forecasting. Base your forecaston these numbers.This is the one wayto predict total F&I Step 2 Step 3 Step 4 Step 5department income Presentation Contracts & Average Total F&Iand income per Levels Policies Sold Income Department Incomeretail unit (PRU). Finance 70% (4000 x 70%) = 2800 $500 (2800 x $500) = 1,400,000Step 2. Credit Life 30% (2800 x 30%) = 840 $200 (840 x $200) = 168,000Forecast penetration Dsability 25% (2800 x 25%) = 700 $300 (700 x $300) = 210,000levels for finance VSC 50% (4000 x 50%) = 2000 $500 (2000 x $500) = 1,000,000and all F&I GAP 30% (2800 x 30%) = 840 $250 (840 x $300) = 252,000products sold in the Etch 60% (4000 x 60%) = 2400 $100 (2400 x $100) = 240,000department. Base Maintenance 20% (4000 x 20%) = 800 $150 (800 x $150) = 120,000credit life, disability $3,390,000and GAP on total PRU = (3,390,000/4000) = $847.50finance units and allother products on total retail units.Step 3. The penetration levels and income averages George Jackson is the Director ofCalculate the number of finance deals, shown above are simply for demonstration. F&I Training for American Financial &service contract policies, credit life and Many factors can and will influence both Automotive Services, Inc. He can bedisability, GAP policies, etc. by applying for a particular dealership or state, so your contacted at 866.280.0301, or by emailthe penetration levels from Step 2 to the numbers should and will be different. at units in Step 2.Step 4.Establish or calculate the average incomethe F&I department earns every time itsells a product or finances a vehicle. Forexample, $100,000 in reserve on 250finance deals equals $400 average reserveper finance deal ($100,000/250 = $400).$60,000 in service contract income for 100policies equals $600 per service contractsold ($60,000/100 = $600). Do this forevery product that you offer.Step 5.Multiply the contracts or policies fromStep 3 by the income averages establishedin Step 4 to get your total dollars for each 22 stop by