AutoSuccess Jan10


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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 Jan10

  1. 1. It’s Here - AutoSuccess Best of the Best NADA 2010, page 4 January 2010
  2. 2. feature solution 3834 Taylorsville Rd. Building A, Ste. 1B Louisville Kentucky 40220 | 877.818.6620 / 502.588.3170 | / | Susan Givens, PublisherJanuary 2010 By SusanGivens Engaging More Customers With Video Have you ever felt like you were mak- sound. With years of successful ex- $1 more on advertising ing little mistakes that are costing you perience, this team is innovative and • Increase your gross profits any- Thomas Williams, VP & Creative Director tons of money at your dealership? Do up-to-date presenting fresh ideas where from $300 to $800 a vehicle you feel like there are hidden profits to keep up with our ever-changing • Make an extra $100,000 or more in in your dealership that are just waiting business. I would recommend Tew- your service profits in 90 days or less to be uncovered? If you are like most art Enterprises Inc. to anyone who • Double and even triple your sales dealers, the honest answer is, YES, wants to improve their business. and service customer retention leadership solution Absolutely! – Doug Mathers • Double your appointments and Ken Russwood Auto Center, Lincoln, NE sales conversion from Internet leads, 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220. 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 magazine to which this magazine may be linked from time to time. 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 and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other 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 AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or Subscription rate is $69 JohnFreund 14 PAY YOURSELF FIRST It’s a shame for YOU not to make Web site leads, third party leads more money, when these dealers do My name is Mark Tewart and I am the • Increase your F&I Product pen- john freund it so easily… President of Tewart Enterprises Inc. etrations by 25% immediately JustinDuff 16 FIT IS ESSENTIAL For almost two decades I have been • Discover the one secret that will Our association with Tewart En- helping dealers find hidden profits and make your dealership an additional terprises has been nothing short correcting little million dollars Dave Davis, Editor & Creative Strategist of extraordinary. Our sales volume mistakes that were or more over the pg 6 pg1 increased over 30% in the first sixty days of implementation. More costing those deal- There are a few things next five years — ers hundreds of We have several importantly, our sales gross in- thousands of dol- that every dealer clients who have sales & training solution creased an average of over 68% lars. These almost- should be doing to already experi- over the first five months of imple- magical solutions enced this and it bernie mock THE TOP SIX TECHNIQUES FOR MORE EFFECTIVE DalePollak 08 USED VEHICLE SOURCING mentation. The bottom line result turn little mis- make money, will make the hair was an increase of over $350,000 takes into instant especially in this stand up on your DOES HOW WE LEARN IMPACT HOW WE BUY? net to the Dealership Operation. I cash machines of neck when you KirkManzo 20 have used many sales systems over bottom-line profit. economy. hear this. the years and none of them have 10 TIPS TO IMPROVE INTERNET MattWatson 22 RESPONSE TIMES IN 2010 ever provided the success that we Because I have are experiencing with the Tewart not met you and do not know anything Brian Ankney, Account Manager Call 888 2 Tewart (888 283-9278) or System. about your dealership, I can’t say how e-mail to schedule TedRubin 24 THE FIVE CHARACTERISTICS OF A ‘GREAT SALESPERSON’ Walter Alfaro, GM much money is being left unrealized at a private and confidential interview. tony clark Perry Ford your dealership. However, I can say FOR CERTAIN that the number ***We will share candid and specific MarkTewart 25 THE MARKETING AND SALES GENIUS OF HOWARD STERN: BUSINESS LESSONS FROM Our grosses went up 30% on the of dollars is substantial and would information that will prove to you with- THE SHOCK JOCK front end, and we added almost 50% shock you, if you knew. out a doubt what I am saying is true. You in the back end. The best part of that will see real dealer examples that support pg 2 pg3 TomHopkins 28 WINNING DEMONSTRATION is that our sales also increased over 25% and continue to increase. There are a few things that every dealer should be doing to make these results. Because of time constraints, there will only be a limited amount of DON’T FEAR ONLINE NEGOTIATION Gary Minneman Jr, GM money, especially in this economy. dealers accepted into this program. TonyClark 32 Susie Horne, Account Manager & BernieMock Sunshine Toyota The Great News is that I have identified P.S.: To receive the FREE Special marketing solution Working with Tewart Enterprises is those little mistakes and have big solu- Report “New Generation of Selling” e- John Warner, Sales-Improvement Strategist different from other consultants and tions for them. NO BS, just real measur- mail us at with New drake baerresen TimJames 10 WHO SINGS YOUR PRAISES? Creating ‘Evangelical Customers’ Who Spread the trainers. We are getting results with very satisfied customers. In addition, able results that start happening immedi- ately and I guarantee those results. Generation in the subject line Good Word About You Tewart Enterprises Inc is helping us THREE LEVELS OF A CAR DEALER’S J.D.Rucker 18 SOCIAL MEDIA STRATEGY to make our entire business more • Sell more vehicles without spending WANT SUCCESS IN 2010? STOP PLAYING MattBaker 26 MIND GAMES pg3 pg 0 DrakeA.Baerresen 30 AND, FOR OUR NEXT EVENT...
  3. 3. sales&trainingsolution DalePollak THE TOP SIX TECHNIQUES FOR MORE EFFECTIVE USED VEHICLE SOURCING Last year, dealers Having expanded the types of vehicles and to past practices should be considered to experienced an number of auctions, there is still much more maximize the opportunity that exists. unprecedented phenomenon: difficulty that a dealer can do to source vehicles more sourcing used cars. To be clear, there was no effectively. For example, the dealership’s Whether or not a dealership adopts any or shortage of used cars, but rather a tightening appraisal process and win rates (look to all of these suggestions, it is a certainty that of supply and a wholesale market that rose book) become critically important. Today, sourcing vehicles will continue to be of great faster than the corresponding retail market. the appraisal process takes on the added importance to used vehicle operations. The The result was that dealers found it very dimension of importance as a sourcing amount of time necessary to identify the difficult to buy used cars. It is likely that this mechanism as well as its traditional role as hottest vehicles, understand what price to condition will continue, and even worsen, a deal maker. Dealerships should review pay, locate their sources of sale, and execute this year. their process of appraising, win rates and their procurement will be greater than ever. even manager and salesperson incentives for It is also a certainty that traditional used car There are, however, several strategies achieving superior performance. Remember managers have more to do than ever with that dealers can use to ease the problem that salespeople become sourcing agents for fewer resources. This is an organizational of sourcing used vehicles. First, dealers the dealership every time they encounter a problem that further impairs the dealership’s can and should expand the horizon of customer with a trade. Properly managing ability to source vehicles. I therefore vehicles they will consider stocking. the appraisal process will result in both recommend that dealerships provide There are always segments of vehicles, in more sales as well as more trade-ins for used car managers with the assistance of particular makes and models, which are reasonable prices. stocking analysts. A stocking analyst can do available at more reasonable prices than much of the computer legwork of identifying others. Often, however, such vehicles are There is still more. However, to go vehicles and the locations where they can either not recognized as such, or otherwise further requires challenging long-standing be sourced. They can even create appraisals excluded because they are not vehicles dealership management practices. The first in order to know how much can be paid for that the dealership has sold in the past or is such approach is to reduce the amount of each vehicle. Such an individual doesn’t have consistent with their new car franchise brand. expected gross profit necessary to justify to be highly compensated, and may likely By simply expanding the set of acceptable the acquisition of a vehicle. Most managers already be on the payroll. They simply need vehicles for consideration, dealers will have won’t justify the purchase of a vehicle unless to have strong analytical ability and a general more choices and opportunities. The most they can foresee at least a $2,000 profit. sensitivity to the used vehicle marketplace. current technology allows dealers to identify Often, the wholesale going price of the Once the work of the stocking analyst has these types of vehicles, as well as where they vehicle is $500 to $1,000 more than what the been performed, the traditional used car can be sourced. Remember that when you buyer thinks it needs to be. If they were to manager can review and approve the stocking have market knowledge that is not commonly pull the trigger it would mean that the profit plan and purchase recommendations prepared shared — and you can act upon it — that opportunity might only be $1,000 to $1,500. by the analyst. Such an approach facilitates constitutes a true competitive advantage. But the choice is not between purchasing for aggressive sourcing and allows traditional an expected profit of $2,000 versus $1,000 used car managers to focus on all of the other A second strategy that can be employed but, rather, a choice between $1,000 and critical tasks for which they are responsible is to expand the sources of acquisition. nothing. There are simply periods of times in Most dealers use a small number of local markets that call for temporary adjustments The bottom line is that the market is creating auctions. While these locations may continue in expectations and changes to traditional new challenges. Dealerships must respond to be useful, they do not provide dealers beliefs and practices. with new thinking and solutions. There is no with the maximum number of choices and doubt that the new challenges in sourcing opportunities. This means that dealers may Just to turn the temperature up even a bit can be overcome — there just needs to be a have to undertake the burden of traveling more, I am going to further suggest that willingness to do so. regionally or potentially even nationally dealerships re-think the amount of their to find the vehicles they want at the prices pack. Packs cause buyers to expect to that are right. The technology of online purchase vehicles that allow them to make purchasing can ease the burden of using expected profit plus the pack amount. This Dale Pollak is an author and the founder of vAuto. He can be contacted at distant auctions. Every dealer should invest creates an even greater perception that cars 866.867.9620, or by e-mail at the necessary time to properly identify and can not be purchased for reasonable dollars. learn about the available tools to purchase Once again, there are moments in markets, and vehicles online. this is likely one of them, where adjustments08
  4. 4. marketingsolution TimJames WHO SINGS YOUR PRAISES? Creating ‘Evangelical Customers’ Who Spread the Good Word About You When faced with a • He genuinely likes you and wants you to wonderful technology. Take the time problem that only an do well. to truly get to know your prospects expert can fix, everyone feels vulnerable if • He is willing to pay more because you and communicate with them (utilizing we don’t know an expert who’s responsive, offer the whole package (decent product, technology) throughout the buying experienced and reliable, and who we know fair price, you’re here to stay and that cycle and beyond, even if they do not will give us a fair price in exchange for certain “guy”-ness). buy from you. Let your CRM do the quality service that they stand behind. • He wants to help others, and that work of the follow up, but know what motivates him to tell others about you “work” it is doing. Know what each Let’s say your family doctor says you need a (that also makes him credible). e-mail says, and follow up with your own knee replacement. Unless it’s an emergency, • He is a not just a happy, repeat customer; personalized e-mails and phone calls. Get it’s not likely that you would drive to the he is a walking testimonial, working for out and become a positive part of your local hospital and ask for the next available you without compensation. community. surgeon. You would probably spend a few • He refers “softened” customers to • Be Grateful — Stop and appreciate what months getting mentally ready, but unsure you, meaning they’re already sold on they’re doing for you and actively thank how to research surgery options, surgeons and essential intangibles like trust, reputation them. Write thank-you notes after every facilities. Feel the anxiety? Many people feel and fairness before they walk into the referral, whether the deal closes or not. the same way when buying a car. showroom. After they’ve sent you a few customers, • He sends you more business than your send them a small but highly meaningful Now, suppose a colleague had a knee replaced brother-in-law. gift, like if your customer likes to fly fish, last summer. She can’t stop telling people send them a dozen hand-tied flies. Show about how wonderful her new knee feels. Priceless, right? You bet. We should all be so that they mattered enough for you to She talks about her doctor like he’s a god lucky — and we can. remember something important to them. (regardless of the actual qualifications of • Be Humble — Ask them how you can the surgeon). She tells you about how the How Do You Create improve and listen carefully to their physical therapy facility sent a van, so her Evangelical Clients? ideas. These people like to feel needed husband didn’t have to take off from work • Be Trustworthy — If your mentality is and helpful. They will appreciate the three times a week to drive her. And, when that every deal is a notch on your quota opportunity to better the world. Even if you share that you need your knee replaced, bedpost, customers’ radar will go up, their suggestion is something you already your colleague earnestly responds, “You need and they will get a sense that they mean do, don’t dismiss the idea (instead, look a knee replacement? I’ve got a guy who’ll fix nothing more to you than cash. The only at how you can better create consumer you right up! I’m walking three miles a day!” customers you will attract in that case awareness around that service since are the ones looking for the best deal; in your best customers don’t know about I’m sure you know a “guy” in the car other words, they’ll be using you, too. it). Appreciate that they took the time to business, too — the industry veteran Voluntarily ensuring transparent, win-win think of an idea and be honest with you. who seems to have a lock on your local transactions will build trust and pay out • Be Responsive — When an evangelical community. Everybody in town, maybe even far more in the long run. customer calls, answer the phone. It’s your uncle, buys their car from this guy. • Treat Every Customer Right — Put usually important. In fact, it’s usually a Forget “taking ups” or prospecting using the yourself in their shoes and do whatever lead or a complaint. In either case, it’s CRM; he has a large book of customers that you can to meet their needs. Every once important that you’re on top of it. he sends birthday cards to and always seems in a while, exceed their expectations, like to have people referring him business. the van that shuttled your colleague to Remember, as passionately as the evangelical physical therapy appointments. client sings your praises, he can also ruin your Wouldn’t you love to be the “guy” to your • Care About Your Customers — Keep name in his circle of influence, and do so with customers? What does he know that you notes on every one of them, including the that same passion. Remember, he’s out to don’t? names of their spouse and kids, birthday, create a better world, and if that means people anniversary, hobbies, etc. Take a photo should avoid your business, he’ll freely tell What every guy knows how to do is create of them with their new car and create them to do so. To him, spreading a cautionary what marketers call an evangelical client, a scrapbook with their testimonials for word is just as helpful as a recommendation. a customer who enthusiastically promotes prospects to flip through on your desk. their “guy’s” business, product or service • Be Human — Show your personality. The good news is evangelical customers through word-of-mouth without solicitation. Create a photo montage screensaver of are naturally forgiving people. Should Evangelical customers feel great reward your family. Whatever your hobbies, something happen that causes them to slip from helping both the person in need and the put evidence of them on your desk to out of evangelism or flip alliances, go back business they are promoting. They enjoy that, help you connect with your customers and work toward renewing your relationship. because of them, others are having the same on a personal level. That connection is They’re worth it. Just ask any “guy.” successful experience they did. They believe imperative for the evangelical customer. in a better world and this is one way they • Be Personal — If technology is contribute to it. They feel their community removing so much communication Tim James is director of sales of HomeNet worth is enhanced with every “convert.” throughout the buying cycle, how can Automotive, Inc. He can be contacted at 866.924.6573, or by e-mail at an auto sales professional become the An evangelical client is the ideal customer for “guy?” The exact same way the “guy”1 several key reasons: became the “guy” before all of this0
  5. 5. By SusanGivens’s CarFlix™ Video Package offers CarFlix™ Virtual Test Drive videos for new vehicles, and CarFlix™ with HumanVoice for pre-owned vehicles. TheseOver the past two years, online video has captured Make a Plan: Set Goals and Measure Success customers who may purchase from the dealership. two products automatically generate compelling videos for new and used vehicles,the attention of marketers, online retailers and, It’s obvious that most dealerships can and should benefit from the use of video. But before doing so, Further, YouTube’s VSEO capabilities can land and include real human voices. The CarFlix™ Video Package also includes a videomost importantly, consumers. As few as five years dealerships should first determine the goals of video relative to the overall marketing strategy. Those YouTube videos atop search rankings, and diminish gallery for dealers’ inventory, and an online research center designed to keep carago, video was an expensive, labor-intensive who do will have more success than those who merely begin posting videos just because everyone’s the visibility of your own dealership Web site. shoppers on your Web site longer. In addition, dealers can quickly and easily postmedium that required serious bandwidth and telling them to. If you don’t discuss goals, how will you know if the video is successful? In the hype Would you rather direct shoppers to a third-party their own videos through’s user-interface, “ControlCenter™.” Further,professional production. That’s all changed now and hurry to push video into the marketplace, many well-intentioned dealers skip any video strategy site where you have no control, or to your own all video and other tools are part of’s Internet marketing platform, andwith increased broadband penetration, easy- discussion and move directly to production and placement. Video is a tactic, and like all other site where you have complete control? Web site incorporate traditional and VSEO practices, and are accessible from one online video publishing software and marketing tactics, the value is maximized when it’s a part of an overall strategy. providers that combine traditional SEO and newer Advanced CarFlix™ Video Reporting also carefully tracks the success of all videos,tools, and additional technological advances. VSEO best practices can achieve the highest video including views and length of views.Today, everyone is talking about the marketing Key Questions to Answer Before Creating and Posting New Videos search rankings, linking directly back to your siteimplications of video, stressing the importance • What are we trying to achieve, and how is it tied to our overall marketing strategy? and inventory rather than someone else’s. 1. CarFlix™ HumanVoiceof video and citing consumer viewership of, and • Who are we trying to reach and what appeals to them? CarFlix™ HumanVoice is the only solution that automatically creates unique,preference for, online videos. • Based on our goal, what metrics will we use to measure success or failure? These are serious considerations that need to be realistic videos of every vehicle in a dealer’s inventory. CarFlix™ HumanVoice • How often will we evaluate metrics to determine which videos meet their objectives? discussed before posting on YouTube. Again, your produces a professional video within minutes, and is able to produce videos for aWhen properly executed, video drives more • Which provider has the best quality video offerings to represent my dealership? approach should be strategic, with clear goals dealer’s entire inventory in less than an hour.Google search referrals, more time spent on Web and objectives in mind. If dealership branding issites and more leads. While some vendors try Getting Started the goal, then YouTube could help. If the goal is CarFlix™ HumanVoice videos include theto exploit YouTube loopholes to produce video Once you have established goals for your dealership videos, it’s important to determine the most increasing vehicle sales, though, then skip YouTube following features and benefits:search engine optimization (VSEO) results, Dealer. efficient way to create and post them. Start by talking with your Web site provider. They should be and post vehicle videos on your own dealership • Real human voices with a variety of engaging, professional male and femalecom has built a comprehensive VSEO program able to assist with creating and posting vehicle and other dealership videos. The best providers will Web site. After all, there is no evidence to suggest speakersdesigned to drive traffic back to the dealership’s be able to help you post high-quality vehicle videos of your inventory within a few days, if you’re that people shop for vehicles on YouTube, and • SmartScripts based on which features on different vehicles are most importantown site. A recent study of video just beginning. If you already have vehicle videos on-hand, your vendor should be able to help you many dealers have been disappointed to find that to potential buyersstatistics found that form submissions on Web publish your inventory on your Web site within hours. YouTube videos did nothing to increase their • High-quality video with images seamlessly combined to form smooth, high-sites with video were 130 percent higher than sites Web site traffic. In fact, some have argued that resolution videoswithout video. Further, consumers spent 20 percent Set a high standard and aim to create unique videos for every car in your inventory. Extensive YouTube can decrease your Web site traffic by • Context sensitive music tracks are automatically assigned based on the mostmore time on Web sites that included videos. In inventory videos increase your Web site’s organic search engine rankings and make the dealership directing shoppers away from the dealership site appropriate music for different types of vehiclesaddition, Google search referrals increased up to look professional. when consumers click on YouTube videos in search • Dealer branding on all videos with a call to action, dealership image and208 percent on sites with video. While results. Be mindful that this cannibalization of contact informationcan export inventory videos to YouTube, search If your video provider isn’t also your Web site provider, they may push you to post videos on third- the dealership Web site’s SEO efforts can result. • Built-in lead forms to instantly schedule a test drive or receive a quotereferrals from YouTube have shown a referral party sites because that is the only way they can claim SEO value. However, using a single platform vehicle videos can be exported to • Advanced CarFlix™ Video Reporting in ControlCenter to track viewership andrate that is marginal, at best, and should not be for Web site and video increases SEO value for the dealership’s own Web site, in large part by linking YouTube, as well as AutoTrader and, but engagement levelconsidered the cornerstone to any VSEO program. search results directly to inventory on the dealer’s site. This way, videos can be fully integrated with again, the decision to export should be based on the SEO best practices applied throughout the Web site. dealer’s goals for individual videos. 2.’s CarFlix™ Virtual Test DriveVideo is proven to generate more leads because CarFlix™ Virtual Test Drive high-definition videos use professional voiceovers toit helps attract and engage more automotive In Conclusion name and describe individual vehicle’s features, for virtually any vehicle available.shoppers online. According to additional Dealer. In Addition to Unique Vehicle Videos, Personalize Your Dealership with the Following Videos: Video can be a great way to brand your dealership, CarFlix™ Virtual Test Drive also provides extensive interior and exterior footagecom research, 97 percent of online shoppers who make a human connection with shoppers, and sell that brings the vehicle to life.view one video are more apt to watch two or three. • Welcome video from the president, CEO, general manager or other spokesperson • Videos of personnel, including key managers, heads of departments and staff members who more vehicles and services. Research concludesAdditionally, the more time consumers spend on that properly executed video can increase search CarFlix™ Virtual Test Drive videos include thea Web site, the more likely they are to submit a shoppers will meet in person at the dealership • Videos of current specials and promotions results, length of time spent on site and lead following features and benefits:lead. Why? Because video provides an emotional generation. Videos should be created and posted • Virtual Test Drive videos on your inventory pages as well as your showroomconnection for consumers and creates excitement, • Community involvement videos, such as charitable events, sports teams and civic organizations • Existing commercials and other marketing videos based on measurable goals, and aligned with a • Professionally written scripts by industry expertsand consumer excitement for a product increases dealer’s overall marketing strategy. Further, while • Real human voices (not computerized) recorded by professional voice talentthe likelihood of lead submission. • Videos displaying your showroom and facilities • Videos featuring happy customers and other testimonials there can be benefits to posting videos on third- • Broad coverage of virtually every make, model, body style and trimIn addition, video allows branding and party sites like YouTube, videos are most effective • Comprehensive vehicle review including introduction, exterior and interiordifferentiation opportunities while providing a To YouTube or Not to YouTube? when posted on the dealership’s own Web site as a features, mechanical features and closingunique and professional 24/7 sales pitch. You There is healthy debate about the pros and cons of posting videos on YouTube. On one hand, it’s part of the overall marketing plan. • High-resolution digital spins, operational footage and image sequencescan showcase your dealership’s personality incredibly easy to post videos on YouTube. And with millions of people visiting the site each day, • Stylized background music based on type of vehicle presentedwhile making a human connection with shoppers YouTube can expand the reach of the dealership’s videos to new audiences. Further, since Google • Standard Flash Player eliminates the need for QuickTime/Windows Mediaonline. Providing links to vehicle videos in owns YouTube, the VSEO capabilities are strong, and video search results can appear within plug-inoutgoing e-mails is a great way to distinguish seconds of posting. • Advanced CarFlix™ Video Reporting in ControlCenter to track viewership andyour dealership to consumers who are shopping engagement level For more information about Dealer.commultiple stores, and also increases the likelihood On the other hand, today it is just as easy to post videos on your own dealership’s Web site. After all, contact us at 866.790.1262, or by e-mail atthat customers will visit your Web site. you may not want to reach millions of people around the world. You might just want to reach local
  6. 6. leadershipsolution JohnFreund PAY YOURSELF FIRST No matter how hard invests $5,000 a year for 10 years, putting his a savings plan is by taking advantage of the you try to avoid total investment at $50,000 — exactly twice convenience of electronic funds transfer it, sometimes it seems like your day-to- as much as the early investor. (EFT). You may be familiar with this type day living expenses eat away your entire of service if you currently receive or make paycheck. Before you know it, the money Assuming an eight percent average annual electronic deposits to your bank account. in your paycheck seems to vanish, and you rate of return on their investments, if we jump This service is also available from other don’t even know where it went. And while ahead now to 20 years from the time our financial services firms, and paying yourself you’re focused on just making ends meet, two investors started, the difference in their first by using an EFT system can help you get putting money away for the future may be the accounts is substantial. Our early investor in the habit of saving. last thing on your mind. Even so, you need would have accumulated a total of roughly to remember that taking care of your longer- $100,493 in her account by this time. Keep Direct deposit allows you the opportunity to term financial goals is just as important as in mind she hasn’t put a penny of her own deposit all or part of your paycheck to the meeting your current needs. money in for the last 15 years. Meanwhile, account of your choice, so you could choose the late investor’s account has grown to only to set aside a certain portion to go directly to a Ever since the days of putting pennies in a $78,227, and he has been contributing each savings account as opposed to your checking piggybank, you’ve likely received plenty of year for the past 10 years. That means that account. Another way to take advantage advice on the value of saving your money. our early investor only put in half as much of EFT is to set up an automatic monthly But when mom and dad aren’t taking care of of her own money, and came out well over deposit. This is a simple, disciplined way to the necessities any more, and you have your $20,000 ahead. add to your account, authorizing a specific own bills to pay, it’s easy to lose track and amount to be transferred from one of your forget to save. As a reminder of just how Now, this example is only meant to illustrate accounts to another (i.e. from checking to a important it is to put part of your income the advantages of saving regularly and savings or investment account). aside — and to do it sooner, rather than later starting early. This does not reflect the — take a look at an example of just how the performance of any specific investment, nor Regardless of which method you choose — or numbers shake out. does it take into account the eventual effects even if you decide on completely different of taxes. It does, however, make the point investment strategy — putting aside money For this example we’ll use two investors very clear — by delaying 10 years in getting now will help you prepare to reach your — one who starts early and lets her savings started, the late investor loses out on the financial goals that lie further down the road. grow, and another who waits until later to benefits of compounding over a longer period begin. Let’s say the early investor puts away of time. $5,000 per year for five years, and then allows that investment to grow for 15 years without Disciplined investment habits aren’t always John Freund is the senior vice president of putting in another penny. The late investor, easy to come by, but there are several investments for Moors & Cabot. He can be on the other hand, waits for 10 years before things you can do to improve your savings contacted at 866.599.9162, or by e-mail at he even begins his savings plan. He then routine. One of the easiest ways to establish
  7. 7. leadershipsolution JustinDuff FIT IS ESSENTIAL We learn at a young dealership? Choose the products that really New Products/Services Purchases: age that everything “fit.” Selecting an Inventory Management • Does a vendor we already work with offer requires a “fit.” If you buy new shoes without System or a new ILM is just like buying a this product/service? trying them on, chances are you’ll be sorry car or a new pair of shoes — it’s something • Can we use this product/service on a trial (and trust me, it’s not easy to find shoes that has to work for you, your employees and basis? when you have size 13 feet). The fit theory your business as a whole; it has to “fit” your • What is the contract length and continues as we grow up because we learn business development goal. To make sure cancellation policy for this product/ that, if you’re going to commit, it had better it fits, go out there and experience all that is service? be to something you like. I like to think my available. Right now, we’re in an uncertain • How is this product going to improve our last vehicle purchase serves as a good example time, and spending thousands of dollars on a dealership? of finding the right “fit” in my life. When all 12-month contract before you get a great feel • Will we need to cut something from our was said and done, I left the showroom with a for the product might not be a wise decision; budget to purchase this product/service? vehicle that fit my personality and lifestyle. instead, drive it before you buy it. In doing so, • Will this product/service replace your risk goes to zero and you can be confident something we currently use at our Would I buy a car based on looks alone? Not with the “fit” you’ve been searching for. dealership? entirely, and neither should anyone. Yes, a • What is the training period for this nice looking car is what first attracts me, but During these tough economic times it’s product/service? I need to dig deeper and make sure it has all important to consolidate your tools if possible. • What are their customer service hours? the features I want and need. I take a trip to There are great ways to save money by • What are the main features of this my local dealer and take a seat inside the car. bundling services. Take a look at your local product? I look around, play with the controls, grasp cable companies. Most offer TV, Internet and • How will we see a return on investment by the steering wheel in my hands, and try to phone all for one low rate. using this product? visualize myself driving down the road. I • How will this product benefit our Try to find a company that offers all of the customer/future customer relationships? analyze all of the features and amenities to products you need and is willing to combine determine how they will best “fit” my needs. their products and services at a discount that Upgrading Current Products/ If I think I’ve found a solid choice, I have “fits” your budget. You’ll find it trims the fat Services: to be sure. I need to take this baby for a test from your budget while continuing to offer • What am I currently paying for this drive to really experience it. Sitting in a car great management tools for your dealership product/service? on the showroom floor really only gives you and engagement tools for your customers. • What is the cost of upgrade (if any)? one-tenth of the actual enjoyment you’ll have driving your car. Test-driving isn’t the ONLY way to determine • Am I completely satisfied with this the “fit” for your dealership. The real key product/service? Now for the Test Drive: I slowly pull the car is being as informed as possible, because • What additional features/benefits do I out of the parking lot and give it some gas. in situations when you can’t just hop in the receive with the upgrade? The rush of acceleration is pretty fantastic. driver’s seat you still need to know what • Are there statistics to support the positive Check. I turn up the volume on the sound you’re getting into. To help determine what effects of an upgrade? system. Potential deafness. Check. My phone will work for you and your dealership I have • Does the upgrade require a renewed automatically connects with Bluetooth. Check. developed a list of questions for you to ask contract? The seats really support me through the turns. yourself and your vendors as you consider • Does the upgrade replace a product or Check. Heated seats warm me up within new products and services and look to upgrade service we are currently using? minutes. Check. After taking the car for a nice your current products. You may never know • How often do upgrades come out for this 30-minute drive I really got a better feel for the true ins-and-outs of a product until you product? the car and how it will “fit” me as I continue purchase it, but these questions will get you • What, if anything, does the upgrade to drive it. I love it. It was definitely the right answers you need to make a solid, informed require on the dealership end? choice, and I’m glad I took it for a spin. buying decision. After answering these • How will this upgrade keep our dealership questions, I hope you are able to reach a up-to-date with technological advances? As you approach marketing and services for decision about the most suitable product/ your dealership, the same principles apply. service to accommodate your dealership Justin Duff is the vice president of sales There are more services promising to make needs. That’s what it comes down to — for Dealer HD. He can be contacted at your dealership run than you can count, but choosing the most relevant product/service 866.867.0016, or by e-mail at how do you choose the right ones for your that is the perfect fit.