Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

AutoSuccess Jun05


Published on

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

AutoSuccess, magazine, sales, new, used, selling, salespeople, vehicle, dealer, dealership, leadership, marketing

For similar content visit

Published in: Technology, Business
  • Be the first to comment

  • Be the first to like this

AutoSuccess Jun05

  1. 1. Read this month’s and previous issues online at .bizHow to Add toYour Response Rate Tony Cantrell
  2. 2. BEFORE YOU SPEND ANOTHER DOLLAR ON THE NEWSPAPER CLASSIFIEDS, READ THIS. Only 7% of newspaper readers surpassed the newspaper as the number-one source are looking for a used car. people use to find a car. At, virtually all A lot of people advertise in the newspaper simply of the nine million monthly visitors are looking to buy a because they have for years. But when you really look at the car within the next 60 days. Also, the majority of number of newspaper readers who users are looking to are actually looking for a car, it’s buy within 25 miles of their home. When not very impressive. In fact, you consider all of this, you’ll realize that newspaper circulation continues you can list your car in the newspaper, to decline, and the Internet has or you can sell it on Still using the newspaper as your main vehicle to reach car buyers? It’s time to partner with For more information, call 1-888-249-6860.©2005 is a trademark of TPI Holdings, Inc. and is used under license.
  3. 3. ATTENTIONDEALER C M Rey Rey &w e b s y s t e m s Cobalt dealers!!Dealer Websites Lead Management Web Marketing Upgrade to wins again!! with Congratulations on winning the NO set up fees GOLDEN Award for best dealer during June, websites nationwide!!! ** See these websites at Why are more dealers switching to 5 simple reasons! 1 We offer the best search engine marketing system on the planet! Generate leads for under $15 and brand YOUR dealership! 2 is the most recent NADA award winner for best new car dealer websites, nationwide! 3 More features: Media rich broadcast email tools, specials builders, better inventory listings, plus several new vehicle configurators to choose from! 4 More automation for more profits! Automated inventory updates, SmartCoupons™, and Automated follow up emails with vehicle info & photos 24-7! 5 We offer FREE 24-7 support from real people, free training from the most experienced internet sales pros in the industry! Contact today to receive a free demo and up to 75 website samples of your dealership website the same day!Email: Learn The Power of 1Website: Phone: 888-807-9116 **Website award awarded by AutoDealerMonthy annually to the best providers nationwide.
  4. 4. Are you tired of struggling to train salespeople? Burned out from chasing untrained salespeople around? Revolutionary Distance Learning Program: “Puts Sales Training on Auto-Pilot So You Can Sell More Vehicles!”“We use Mark Tewart’s Would you like to be able to train your salespeople to properly sell more vehiclesDistance Learning Program without all the hassle usually involved? Do you have the time or patience to spend endlessly training new salespeople how to sell or retrain old dog’s new tricks?every day and our sales andgross proÞt keep going up If you’d like to have complete control over your training process, regardless of your schedule, how much business you do or don’t have or any other condition and putbecause of it.” an end to the endless grunt work of training, keep reading.Chad Hawkes, Dealer Do you get tired of sending salespeople to the latest and greatest feel-good, rah-Hawkes Motor Co. rah seminars that give your salespeople the Sunburn-Effect? You know what I’mPryor , OK talking about, the salespeople get hyped-up but it wears off after two weeks stuff that leaves their heads and their wallets empty. If you would rather be able to have your salespeople trained everyday automatically“We love the training, it’s and have a built-in accountability tool to gauge the training and evaluate thesimple, effective and this salespersons results from the training, Well, It’s finally here!has cut our training costswhile increasing our skills Distance Learning Program from Tewart Enterprises This new technology allows your salespeople to train from any computer withand sales. The bottom line is speakers and an internet connection 24 hours a day - 7 days a week. Plus it allowssimple, THIS WORKS!” you to hold the salespeople accountable for when and if they did the training!Ernie Parisi, Manager Increase Sales, Profits and Customer Satisfaction,Bradenton Hyundai While You Also, Decrease Costs, Hassles and Wasted Time.Bradenton , FL That’s not all - No Contracts, No Commitments, and No Problems! For More Information and a Simple Demonstration:“Frankly, this is a no- 1. Call our office at 888 2 tewart (888-283-9278)brainer. The information 2. Email us at info@tewart.comis Þrst class. It’s simple to 3. Fax a copy of your business card with the worduse, convenient and we training written on it to 513 934-4588have increased sales by P.S. Contact us by June 24th and receive a Free Special Report: “How to Recruit,20 vehicles a month and Hire, Train and Dream Team of Salespeople”increased gross proÞt by$200 per car. It’s not by P.P.S. BONUS - The first 10 people to sign up for this revolutionary training from this notice will receive Mark Tewart’s NEW DVDaccident”Seth Silger, General “HIGH PERFORMANCE SELLING”Manager With Over 6 Hours of AWESOME information. - A $597 Value for FreeWard Chrysler P.P.P.S. For a Free newsletter go to: and click on subscribeCarbondale, ILTewart Enterprises Inc.1999 Kirby Rd.Lebanon, OH. 45036888 2 Tewart / 513 932-9526email: info@tewart.comweb:
  5. 5. 8 A Simple Formula for Internet Success DavidKain Always Ensure Compliance 9 TonyDupaquierINSID Do You Care Ofßine Strategies to Build Online TrafÞc Full Price is a Fair Price 10 12 13 ScottJoseph PaulAccinno KirkManzo Brand Yourself in Order to Improve Your Image in the Marketplace 14 Promote Events Designed to Drive TrafÞc to Your Dealership and JeffFishel The Secret of the Perfect Handshake 15 PattiWood 10 Directives for Developing Via Delegation 16 TomGegax How to Add to Your Response Rate 18 TonyCantrell Increasing Your Earning Potential 20 BrianTracy Follow Up Your Unsold Customers 22 The Key to Success, Part 2 ChrisHanson What is Leadership 23 SeanWolfington is Like Leaving Cash Out in the Open 24 Leaving Consumer Information Unsecured StacyDiPiazza I Want to Think About It 26 AnthonyHall Without Spending More on Advertising 27 How to Increase Sales by 20 Percent MarkTewart Internet Sales by 300 Vehicles in 2004 28 Schomp Automotive Increases RayVelasquez Demo for Dollars 30 BrianAnkney Realigning Staff Can Breathe New Life Into your Dealership 31 Promoting Changes CarolMartin Tools for Developing Lifelong Customer Relationships 32 DanVogel Zachariah 2:13 “Be still before the Lord.” Even in the fastest wheel that is 3411 Pinnacle Gardens Drive Louisville, Kentucky 40245 turning, if you look at the center ! Toll Free: 877.818.6620 " Facsimile: 502.588.3170 where the axle is found, there is no movement. And even in the busiest Patrick Luck, Editor & Publisher life we may dwell alone with God in • Susan Givens, Vice President eternal stillness. • Courtney Hill-Paris, Sales-improvement Strategist Lamentations 5;19 • Brian Ankney, Sales-improvement Strategist “Thou, O Lord, remainest forever; • thy throne from generation to God Bless America Thomas Williams, Creative Director • generation.” AutoSuccess Magazine is published monthly at 3411 Pinnacle Gardens Drive, Louisville, Kentucky, 40245; 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, 3411 Pinnacle Gardens Drive, Louisville, Kentucky 40245.
  6. 6. sts ms ls fis sf DavidKain leadership solution A Simple Formula for Internet Success With all the Internet 1. Combination Internet and floor sales Consider your own experience when you products and services person – works fine in a small operation use the Internet. Was it easy? Was it quick? available for dealers with few leads but the tendency is to favor Did you feel confident? When you interacted in the market today, the floor traffic and not offer the best with the agents, were they knowledgeable one could assume service to the Internet customer, which and able to provide you with the information success is really all could cause them to go elsewhere. you needed? Was the experience somethingabout choosing the right one. Even the best you want to tell your friends about? Ifproduct or service is dependent on the focus 2. Internet sales person or Internet sales you can build your process around theseand commitment of the dealership. I wanted manager – the most common approach questions, you will undoubtedly be movingto use this column to line out a formula that used in dealerships today. The benefit is in the right direction.will consistently deliver results when used full-time focus on the Internet departmentby hard working and smart dealers. without taking floor ups, and lead handling D. Marketing and lead generating is consistent. This is difficult to scale, and Once you are set on the structure personnel1. Decide who is ultimately responsible turnover stops productivity immediately. and process, it is time to generate someThis is probably the most important step. leads. There are essentially four sources:The Internet is still widely misunderstood as 3. Internet with a call center – this is aa marketing tool for automobile dealers, and growing trend and born from the BDC 1. Lead aggregators or providers (Dealix,it needs an internal champion to shepherd (Business Development Center) strategy Autobytel, AutoUSA, etc.) – quickestit through the formative stages. Preferably of “call” specialists setting appointments source with large volume opportunitythis is the general manager or general sales and turning them over to Internet “sales”manager at the dealership because they have specialists. This is the most scaleable 2. Online classifieds (,to weave the marketing and Internet sales but requires a very effective manager to, etc.) – primarily generateprocess into the existing marketing and sales ensure consistent results. phone calls for used vehiclesframework. 3. Manufacturer leads (,2. Outline your Internet marketing and Consider hiring people GMBuyPower, etc.) – solid leads andsales vision typically excellent valueWith the cost of operating an Internet who are sales orienteddepartment, it is best to line out your vision who can warm up 4. Dealer Web site – best closing rate butand goals. Do you want to increase sales andmarket share? Do you want to grow owner people fast, know the volumes are typically lowloyalty? Do you want to be number one in product and processes A. Toolsclose rate, sales or profits? Do you want and greet each day The basics: Dedicated PCs for each Internetto be known as the best Internet retailerin your town, region or nation? Whatever thinking of the department employee, high-speed Internet connection and a lead management tool.your vision is, I recommend that it be more opportunities to sell Without these in place and being utilizedthan “just sell more cars and trucks.” Think a vehicle. effectively you will never reach your fullof the tale of the three bricklayers – when potential.asked what they were doing one said “layinga brick,” the next said “building another B. Personnel B. Metricswall,” while the third one said “building a Depending on your structure, the next You must measure the following to keep oncathedral.” Your Internet team should know decision is what type of personnel is required track.what they are building. and how should they be compensated? Consider hiring people who are sales Weekly: leads, appointments kept, sales and3. Line out your strategy oriented who can warm up people fast, know gross.Your strategy is the heavy lifting and the product and processes and greet each day Monthly: all above plus measure the leadrequires you to settle on what steps are thinking of the opportunities to sell a vehicle. sources by close rate, cost per lead, cost pernecessary to achieve your vision. The This is a tough environment and requires vehicle sold and return on investment.elements of an effective Internet strategy optimists who can handle rejection and getinclude the following items: back up and keep asking for the appointment It’s not simple but if you follow the plan and and the sale. Compensation depends on the adjust to the challenges you can achieve yourA. Structure structure but I recommend a pay plan that Internet vision.When deciding on the right structure, think focuses on “kept appointments” and theof what will allow for the best consistency actual vehicle sale. David Kain is the automotive Internetand scalability? There are many types of training specialist at Kain Automotive Inc.structures used by dealerships today and, for C. Process He can be contacted at 800.385.0095, orthe most part, all of them can deliver good When deciding on the lead handling process, by e-mail at, orresults. The most common structures are: it is important to think like the customer. visit 8
  7. 7. sts ms ls fis sf TonyDupaquier f&i solution Always Ensure Compliance To ensure compliance, the product must be sold on its own. These are two areas that should save you, a business manager not burn you. must disclose the base The menu is a great way to ensure legal payment and how compliance and it must be correct and Tony Dupaquier is the director of that base payment F&I training for American Financial & consistent. If there is ever a legal issue in the Automotive Services Inc. He can be was calculated. What business office, the investigators will look at contacted at 866.856.6754, or by e-mail atdetermines a base payment is the amount the pattern of behavior and the paperwork., the APR and the term used. Thecustomer must also know that it is possibleto take delivery of the vehicle with thebase payment. Utilizing specific wordingensures this is disclosed properly: “Mr/Mrs Customer, this is the amount you arefinancing today, and your base payment isXX,XXX, for XX months, at XX APR, andthat will deliver your new vehicle today.”It is imperative to explain the base paymentto each customer. If the customer isunaware of what the base payment is, thenthe payment was “packed,” a practice that Maximize your buying power and reducehas been deemed unfair and deceptive inmany states. Even if a state does not have a advertising budget.specific packing law, many attorney generalsare utilizing unfair and deceptive trade You sell cars when you’re face to face withpractice laws to prosecute and fine dealers prospects not buying media.and business managers. We customize the campaign, work with The menu is a great the media and you sell the cars. way to ensure legal compliance and it “With High Impact Media handling our advertising and must be correct and coordinating our promotion we sold 69 cars in one weekend, 34 on consistent. Saturday!” Ramey Chevrolet, Tazewell, VAThe customer must also know that theoptional products are not required to secure “High Impact Media stresses consistent, positive advertising. Thefinancing. A recommended solution is to last big promotion they planned we had people lined up at the doorhave the customer initial the base payment so waiting for the dealership to open.”there is no miscommunication of this fact. Magic City Ford, Roanoke, VAAnother major concern is that the product “Not only did we sell a lot of cars, our grosses were fantastic!”disclosed on the menu is the same productthe customer receives. If a business manager Ramey Automotive, Richlands, VAdiscloses a 5-year, 75,000-mile exclusionarypolicy with a $100 deductible, then the Call today and one of our consultants can showcustomer must receive a contract with theexact same conditions. you how we will reduce your advertising cost.Bundling the products is another way of Only one dealership per DMApacking. Bundling is when a product issold in conjunction with another product.The product that gets bundled the mostis maintenance agreements. If a business 866.815.2340manager sells maintenance agreements, thenjune 2005 9
  8. 8. sts ms ls fis sf ScottJoseph marketing solution Do You Care How often do you Why not handle the call like this: “Thank You see, “with someone” doesn’t evoke the preach that the little you for calling us, John’s not here right same negative vibes as “he’s in a meeting.” things make a huge now… Then add… maybe in the meantime Being with someone is OK, being in a difference to the way there’s someway I can help.” meeting is never more important that a you and your dealership customer. The good news is you can always are perceived? My Check the change in perception there. It be with yourself! I’ll explain in a moment.guess is most dealers or business owners may seem small but small things can have aprobably preach it every day. huge impact on results. Instead of the caller “May I ask who’s calling?” talking with an apologetic little sole who’s YOU WILL NEVER, EVER HEAR THISThe reality is that customers decide not simply giving out information, the caller’s INTERROGATION OF CALLERS ATto buy and leave – they don’t bother to now talking with someone who is prepared J&L MARKETING FROM THIS DAYschedule an appointment when talking with to help. FORWARD. Why? Because it doesn’tyou on the phone – they decide to stop doing matter who’s on the line. Given that we’rebusiness with you – for reasons other than not “with someone”, you have every rightprice or product. You know what; to speak with the person you called. So why should we interrogate you?Almost 70 percent of the time, customers the simple truth is thattake their business elsewhere because of The fact you are a customer or a potentialperceived indifference. The fact is most customer is enough. There is no way youcustomers leave because they think you donot care. Do you? Clearly you do, it’s just they probably should put barriers between you and the people you serve.that the customer thinks you don’t. Youknow what, perception is everything! can help Does that mean you should take every call? enormously. No, because you would never get any workIf you want to really maximize the profitpotential of your advertising then begin with It’s all part of done. First, few of us take time out to think strategically – we’re too busy fighting fires.creating a perceived difference. empowering So for the next few weeks try this.The first step to creating a perceiveddifference is to pay attention to the words people. Allocate a part of your day to be simply “with you”, and instruct everyone else that you’rewe use. Many of the words we use everyday going to be “with yourself (someone)” for aconvey we don’t care. Most of time we use “Can I take a message?” certain amount of hours.certain words or phrases on the telephone Replace it with “maybe there’s some way I– thus killing any chance of persuading the can help.” Again the difference is small but Then when a call comes in for you, it willprospect to visit the showroom. I wonder critically important. get handled like this: “Thanks for calling,how many more vehicles we would sell by John is with someone right now, he tells mejust eliminating certain words or phrases. By forcing everyone to say, “maybe there’s he will be free at 10:30. In the meantime, some way I can help” you’re forcing maybe there’s some way I can help.”Here are some phrases for you to immediately people (in a nice way, of course) to geteliminate from your store’s vocabulary: much more involved. So all of a sudden, You know what; the simple truth is that they your receptionist, your front line people probably can help enormously. It’s all part • “I’m sorry” or whoever answers the phone has to get of empowering people. Try theses ideas they • “He’s in a meeting” involved in helping the caller solve the really do work. • “May I take a message? problem. • “Can I ask who’s calling?” Next month’s article will discuss more The effect of that is immense. Imagine the specific words and phrases your salesAs I sat down to write this editorial I realized dramatic skill growth that will come for your staff can use to increase your percentagemy own company is guilty of a few. Let’s all prime telephone answerers from forcing of appointments and sell more cars. Whatwork together and ban them right now! them to use that phrase. will that do for you? The perception of your store from customers, prospects and in yourLet’s look at why. “He’s in a meeting” community will dramatically improve and Do you know what most customers think your advertising investment will start to pay“I’m sorry” when they hear that phrase? “Look … when you much bigger rewards!Now clearly you do use that phrase if you’ve will you people get serious about customersmessed up. But please do not use it in this and stop having meetings all the time.”scenario: Use this phrase instead, “Thanks for calling, Scott Joseph is the president of J&LThe caller calls and asks to speak to John John’s with someone right now” … and Marketing Inc. He can be contactedSalesman. John’s not in so you hear… “I’m then of course, you add on the end, “Maybe at 866.429.6846, or by e-mail atsorry, John’s not here right now.” there’s some way I can help.” 10
  9. 9. sts ms ls fis sf PaulAccinno sales and training solution Ofßine Strategies to Build Online TrafÞc Recently much has means of reaching the largest number of with radio. (Customer sees and hears your been said about people for the lowest cost per impression. ad simultaneously with proper frequency). Search Engine Remember, all you are trying to do is market Again, don’t load the board up with copy. Optimization (SEO). your URL. Five or ten second spots are all The main element needs to be your URL. This has proven to that is necessary …”Need a Car or Truck? Add your brand logos and some shortbe an effective means of building online Visit”. Short commercials, copy. That’s it. Remember, it needs to betraffic. However, SEO should not be the sole run a lot of times, will establish good reach immediately readable from a distance at 60method of marketing your Web site. There and frequency and provide excellent market MPH!are still a lot of shoppers that process offline coverage. Most TV and cable stations willinformation. According to J.D. Power & produce this simple spot at no charge when Direct MailAssociates”…traditional offline advertising you place your buy. With this medium you can target specificis an extremely effective way to drive traffic areas of your market, both geographicallyto a Web site”. All you are really trying to do Radio and demographically, i.e. adults 25-34 withinis establish “top of mind” awareness for your This medium provides mass reach and can a 20 mile radius of your store. Even thoughWeb site address so the customer pops your be used quite efficiently to market your the Internet covers virtually everywhere,URL in the browser first and you do not have URL through news, weather and sports your best prospects (better closing ratios,to rely solely on search engines to find your sponsorships…”Today’s news is brought to higher grosses, more repeat business etc) areWeb site. you by…we never close!” still going to come from your local trading area. It doesn’t have to be an expensiveBut we are getting ahead of ourselves, piece; a postcard with your URL and a briefbecause the first step in developing anystrategy for building Web traffic is to Regardless of message is all it takes. Start by sending it to all your existing customers.establish an Internet Marketing Budget. which medium orLike any budget it should be based on combination of If you do not want to establish an Internetpotential ROI. There are several ways todetermine an Internet Marketing budget. If media you choose Marketing Budget, then at least make sure your URL is included PROMINENTLYyou are looking to sell 50 cars a month on (a multi-media in your existing advertising. In TV makethe Internet, and your average advertising approach is always sure you “say” your URL as well as video.cost per new and used vehicle retailed is$300, then your monthly budget should be more effective), In radio be sure to repeat your URL just as you would your phone number. In print,no more than $15,000 per month (which you need to go you can create a boarder that simply repeatsshould include the cost of your Web site ofßine to drive your URL without using up a lot of space. Inand any third party lead services to whichyou subscribe). Another method would be trafÞc online. Outdoor, make sure your URL can be read at a distance at 60 MPH and in direct mail,to calculate your budget as a percentage again make sure it is prominent. Be sure toof gross profit. Again, using 50 units as an Newspaper discuss with your advertising agency thatexample with an average gross per vehicle To keep costs reasonable you could run you want your URL prominent in all yourretailed of $1500 and an advertising to gross “Business Card” size ads in various sections advertising. Web addresses have a way ofratio of 25 percent, your budget would be of the newspaper...classified, sports, and disappearing from your advertising if you’re$18,750 per month. Still another method business etc. Create them in reverse (black not paying attention!could be if your Internet sales are 10 percent background, white type) and they’ll standof your business and you want to grow it to out and only include your URL and a very Regardless of which medium or combination15 percent, simply dedicate 15 percent of brief message like, Need a Car or Truck? of media you choose (a multi-mediayour ad budget to the Internet. Regardless Visit approach is always more effective), you needof how you want to calculate it, and what to go offline to drive traffic online. Keepdifferent accepted industry guides you use, Outdoor one thing in mind...with the advent of theyou need to establish a Internet Marketing This is an excellent medium for automotive Internet; there are no more customers...justBudget before you can successfully build Internet advertising. The customer is in their prospects!Web traffic! car, seeing your URL everyday. Half the battle is simply getting them to remember Paul Accinno is president and CEO ofTelevision your Web address and outdoor provides WorldDealer, Inc. He can be contacted atWhile television may seem cost prohibitive the visual support in a dramatic way. It can 866.429.6826, or by e-mail atfor your ad budget, it is still the most efficient also be used quite effectively in conjunction 12
  10. 10. sts ms ls fis sf KirkManzo sales and training solution Full Price is a Fair Price The concept seems these are absolute minimums. Hopefully you THANK YOU so foreign to many can improve to one in five full-price sales. dealerships today. The pendulum appears to In order to accomplish this, use a payment have swung so far in & down-payment conversation. This will favor of the consumer yield better results during your negotiationsthat most sales people and desk managers compared with a trade-difference negotiation. to all of this year’sconcede defeat before the battle even begins. Whether you choose a traditional four-square format or some other proposal presentation, attendees, speakersThe person you need to sell on Full Pricebeing a Fair Price is really who? That’s right, the focus needs to be on payment and down payment to maximize your profit opportunity. and vendors whoit’s you. How can you convince your salesperson, let alone the customer, to pay full Deals go from the desk to the customer. The helped make theasking price if in your mind you have already sales person will then present the proposalmade a concession? Perhaps some of you and wait for the customer to respond (react)believe it is not even possible to sell a vehicle to our figures thus starting the the full asking price unless that customerjust fell off a turnip truck. This contrasts what many sales people do today by taking an offer to the desk to begin BEST PRACTICES negotiations. Remember all deals start atThe best way to gauge whether you have the the desk.courage and intestinal fortitude to actually dothis is to just ask yourself, “How many Full Start the first pencil as follows: Market valueList deals did you deliver in the past 30 days? (MSRP) less rebates (as they apply), use two A Great60 days? 90 days?” If the answer is one or trade figures ($500 spread) higher figure tonone to any of the three time frames, you mayneed to sell yourself first.In the early 1900s there was an Italian be ACV less $500-750+, payoff to bank, 20 percent down payment, payment options at 48 months two figures with a $10 spread. Use an average interest rate for your area to start. (10 SUCCESS!mathematician and economist named Vilfredo percent for this example)Pareto. He studied business, society and theenvironment in search of an explanation Example:for the natural distribution of results. His A. Market value $31,987findings lead to the ratio that bears his name, Rebate $1,500The Pareto Principle. Most of you are more Adjusted Sale price $30,487familiar with the ratio itself: 80/20. B. Trade in $3,461 up to $3,963The 80/20 rule simply states that a smallnumber of people often impact the majority of C. Payoff $2,750the results. There are examples and nuances to D. Down payment $6,097this principle that are too numerous to mention (20 percent)here. For our discussion, reality dictates that E. 48 Months $587-597while the majority of your customers willbehave similarly (80 percent) the minority (20 Your sales person will then ask for a check.percent) differ in their approach and outcome “Mr./Mrs. Customer just go ahead andof purchasing a new vehicle. write me a check for $6,097, make that out to Thompson Motors and I will get yourWithin that 20 percent there is both good paperwork started.”news and bad news. Approximately half ofthem (10 percent) will be a delight, the other Then shut up and wait for their response.half (10 percent), well, they are probably why Realize some will actually surprise you andyour local bartender knows you by name as write the check for $6,097. If they do not,you recall your tales of woe. well that’s something we will discuss in next month’s article.One in 10 should pay you all the money.If this is not happening, there is only one Go make something happen!reasonable conclusion: you and/or your salesperson never asked them to pay full price. Kirk Manzo is the general managerSo if you are not even seeing one in 20 (four at Ziegler Supersystems. He can beto five per 100) full pop deals, it’s simply contacted at 800.858.6903, or by e-mail atbecause you are not asking. Bear in mind 2005 13
  11. 11. sts ms ls fis sf JeffFishel marketing solution Promote Events Designed to Drive TrafÞc to Your Dealership and Brand Yourself in Order to Improve Your Image in the Marketplace Car shoppers want So what happens when two dealers in the To determine your dealership’s brand the best deal now, same market stage their events on the same differences, start by asking yourself these and whoever gives weekend? What if their offers are similar and questions: them the best deal they’re selling identical makes of vehicles? now will get their In this instance, the dealer who has branded • If I had to pick only one thing I want business. During event his or her dealership best will win. the customers in my market to knowpromotions, the customers must also act now about my dealership, what would itor they will lose out. This sense of urgency is William Bernbach states: “In advertising, be?why event promoting sells cars. not to be different is virtually suicidal.” • What do I do better than the competitors in my marketplace? • What can I offer customers in my market that my competitors can’t? • What do I offer my customers that translate into real benefits for them? • What makes me special in this market? • Who is my target market and what would my competitors not want my target market to know about me? Your answers to these questions will be the first steps in determining your brand. Once you have determined and established your brand, you must then advertise it. This may include using targeted tag-lines, uniform graphics, unique print design, custom logos and perhaps a jingle (last month’s article) all within your radio, TV, Internet and print media. Plan your advertising months in advance. Planning ahead utilizes your entire budget most effectively, allowing you to select your best event promotional days, weeks and months of the year. Moreover, planning ahead saves you up to 40 percent in your annual media expenditures allowing you more budget for your branding campaigns. Combining your monthly brand advertising with your event promotions is effective because the one consists of the urgent deals offered to your marketplace during each weekly event promotion. And the other gives prospective customers the added reasons they need in selecting your store over your rival’s. Jeff Fishel is the national sales director for He can be contacted at 866.827.6246, or by e-mail at jÞ 14
  12. 12. sts ms ls fis sf PattiWood leadership solution The Secret of the Perfect Handshake If you know the rules, you give a firm Although the handshake is rapidly becoming three-to-five pump an internationally accepted business greeting, handshake in greeting Americans shake hands more often than the while standing people of other cultures. The handshake can approximately 16 serve as an important verb in your bodyinches from the person. In business you language vocabulary. Few things can creategreet someone in this manner and then such an effective first impression as anstep back to a minimum of two-and-a-half easily given, gracious handshake. Based onfeet distance, with no other touch in the research, here is the best way in Americancritical first four minutes of the interaction. culture to have the perfect handshake.A handshake allows you to form a firstimpression of that person or, if you have met The Perfect Handshakethem before, to form an impression of them • Rise, if seated. That rule used to applyfor that interaction. to men only; now women should rise, as well. If you remain seated when someoneIn Western cultures, handshaking is used to is introduced to you, the communication ofgreet another person and “seal” a contract or personal indifference is unmistakable, notpromise. The handshake is also the quickest, to mention offensive. The only approvedmost effective way to establish rapport with exception to rising to shake hands is if youanother person. It takes an average of three are eating. If that is the case, you can wait tohours of continuous interaction to develop shake hands until after you are done.the same level of rapport that you get witha handshake. • Walk up to the person with confidence. Keep your head level and your hands at your side. Be sure to keep your hands out of your A Þrm handshake pockets. Research indicates that we don’t that shows trust people with hands in their pockets. Make sure your right hand is free to shake strength and hands. Always shift any purses, briefcases, vigor with papers, beverages or cell phones to your left hand before you begin the greeting. appropriate eye • Smile briefly. Don’t overdo it. If you smile contact length too long or too much, you are perceived and completeness as submissive. An over-extended smile can create negative impressions, such as of grip is related “overeager,” “easily manipulated” or “not to a favorable intelligent.” Women need to take special care not to over-extend the smile as it can Þrst impression. reduce personal power and can even be misinterpreted as a sexual come on.We shake hands to show we hold no weapon. • Make eye contact. There is a substantialIt is thought to have started with the Roman amount of research showing that good eyearm clasp. One man would reach out his contact increases feelings of trust. Don’tright hand, his weapon hand, and clasp just stare, but don’t look at your shoes. Makingbelow the elbow of the man he was greeting. eye contact as you approach lets the personWith this greeting neither person could yield know you want to interact. Men need toa weapon easily. Medieval knights created extend the eye contact for at least threethe shaking part of the handshake because seconds without blinking or looking away asthey knew that other knights hid daggers they shake hands. Women need to be carefulup in their sleeves and that shaking would of holding eye contact for more than threedislodge any hidden weapons. So basically to five seconds at a time with men they havehandshakes are weapon checks. continued on page 34june 2005 15
  13. 13. sts ms ls fis sf TomGegax sales and training solution 10 Directives for Developing Via Delegation Leaders who feel they you. Last, there’s the I-might-lose-control Top 10 delegation directives: lack the time to think Syndrome. No problem; people love working 1. Transfer ownership. Be clear: “Here you strategically don’t for a control freak in an office gulag. go. This baby’s all yours now.” use the full potential of their employees. A Good leaders occasionally use overt non- 2. Tell why. An employee who understands manager must know delegation to deliver a message. I saw this why he or she is being asked to handle a taskthat effective delegation not only adds to first-hand while I led Tires Plus. Take the is more likely to execute it thoroughly.his or her employees’ development, but Monday morning Eric Randa, our loss- 3. Get the wheels turning. For complexfrees him or her for more profitable business prevention czar, and Wayne Shimer stopped projects, help the delegatee develop anpursuits. by a Wisconsin Tires Plus store. They action plan by asking open-ended questions walked past soda cans and other weekend like “How do you see this unfolding?” andDelegating can be summed up in three detritus spotting the lawn on their way inside “What roadblocks do you anticipate, andwords: let ’er rip! It develops employees only to discover the store manager and two how will you overcome them?”like nothing else. Hand over anything your associates standing around. Now, understandpeople can do: that we viewed cleanliness as next to 4. Set deadlines. Mutually agree on a godliness, which set us apart in an industry completion date and time. Otherwise, the • better than you; synonymous with “grease monkey” and task may sink to the bottom of the delegatee’s • quicker than you; “industrial waste.” Wayne, a vice president priority list. • at less cost than you; and part owner, walked back outside and, for 5. Ask for a recap. It’s dangerous to assume • that will add to their development; all to see, picked up the trash. “You never the delegatee perfectly understands the • that will free you for more important saw Wayne have to pick up trash at that store assignment. Always double-check: “To pursuits. again,” recalled Eric. make sure I communicated properly, please explain what you’re planning to do andUnder-delegation is rampant. Many people Nobody ever accused me of under- why.” The answer may surprise you.who manage by the seat of their pants delegating. “Tom was a dedicated delegator,”wear their resistance to parceling out tasks Wayne recalled. “He forced me to be better 6. Monitor (but don’t smother). Thelike a badge of honor. Others conceal their by making me do things I didn’t think I point is liberation, so don’t micromanagereluctance behind a wall of bravado. There could do. The downside was that Tom was unless the delegatee is untested or timing isare myriad excuses for under-delegating. so strong at it he would over-delegate. His critical. If he or she starts down the wrongThere’s the I-can-do-it-better-myself logic was that he never knew how far he path, say something like, “That mightSyndrome, which, even if it’s true, doesn’t could challenge you to find your endpoint, work, but have you considered going in thischange the fact that your time would be and Tom wanted to find that endpoint. If direction? . . . What do you think that couldbetter spent elsewhere. There’s the classic I- your optimum capacity was 98, he wanted yield and why?”can-save-time-doing-it-myself Syndrome. you at 97.9.”It might take a while to train someone to 7. No take-backs. Don’t retract ando a repetitive task, but once it’s learned I do tend to overload people. But that’s so assignment at the first sign of trouble. Thatyou’re home free. Do the math - delegating they learn to unload lesser priorities. Still, can kill confidence. Setbacks are learningjust one additional assignment each week there’s a fine line. You have to trust that your opportunities, so patiently coach theto seven people who report to you crosses people will yell “Uncle!” One time, Wayne delegatee back on track.30 assignments off your to-do list every mentioned the time he had 135 items on 8. Play to a delegatee’s strong suit. Tailormonth. Another malady is the Somebody- his Goals Activity Report. He couldn’t get assignments to people’s strengths. Don’telse-might-make-a-mistake Syndrome. much help because everyone underneath him saddle a big-picture thinker with a detail-Mistakes will be made, but that’s exactly how already had full plates. “I just became adept at intensive project.people develop the experience needed to free figuring out what Tom really wanted done,”you up for more meaningful activities. Wayne said. “What were the $10 items, what 9. Don’t duplicate. Assign specific duties to were the $5 items, what were the $1 items? I specific people, with zero overlap. If thereOther conditions that cause under-delegation took the $10 items and worked the heck out are two people involved, make it clear who’sinclude the Fear-of-giving-the-wrong- of ’em. If he hit me on an uncompleted $5 in charge.impression Syndrome, marked by concern item he’d grill me some, but he never broughtthat you’ll appear to be carrying less than up the $1 items. His motto is, ‘Be tough, not 10. Distribute evenly. Up-and-comers needyour own weight. In fact, respect deepens rough.’ I’m convinced he walked out of the challenges, too. Avoid the temptation towhen you place your trust in others and focus building at night smiling and thinking, ‘Let’s overload your stars.on big-picture thinking. There’s also the I- see how he handles this one.’” Tom Gegax is founder and chairmanfeel-threatened Syndrome - fear of being emeritus of Tires Plus and founder ofshown up by a subordinate. That leads to a Tough-not-rough delegation benefits Gegax Management Systems. He can bemediocrity mindset and an idle, cynical staff everyone. Before plopping assignments on reached at 866.210.2832, or by e-mail atwhose poor performance reflects poorly on desks, do your delegation due diligence. 16
  14. 14. Ever wonder where your profits went after your software flopped?Our proprietary technology can increase your profits. Why risk using software that isn’t specificallycreated for your dealership’s unique needs? At Chrysler Financial, our entire business is based on knowingyour business. From Electronic Funds Transfer and RouteOne to AutOrigination® and ACE, our people,products and services are solely dedicated to helping you sell more vehicles. In fact, we’re completelyinvested in your long-term success. So choose the one financial company that smokes the rest of them. AutOrigination is a registered trademark of DaimlerChrysler Corporation. Chrysler Financial is a member of the DaimlerChrysler Services Group.
  15. 15. fs feature solution TonyCantrell How to Add to Your Response RateSimple additions to your direct mail your potential customers excited and prompt in exchange for the free gift. Many salescampaigns can easily increase your response them to look for your invitation in the mail. the following week and month come fromrates and lower your cost per sale. Every Messages up to thirty seconds long can be what some would call, “Gift Grabbers.”store wants more bodies in the showroom left to convey to your customers the exciting NADA says that 72 percent of people buy onas a result of their marketing efforts. opportunity that is soon to arrive in their impulse. Gifts can range in price from $.25Direct mail is one of the quickest and most mailbox. Messages can be used to condition to $100 and more. How much is your nextcost effective means to do this. It can be the customer to call the dealership to set an sale worth? Adding gifts to your campaignmeasured, so continuous improvement is appointment the day the invitation arrives so will bring more potential customers in thepossible. Several methods and many new they can be sure to receive the special rates door. The Vertis Customer Focus® 2005:tools have made results possible that dwarf and/or pricing the invitation makes available Automotive study, reveals that the numberthose only a couple years ago. to them. Some dealers and managers like to one reason for many consumers to buy a new personally invite the customer to come in and car is simply because they want one. For 36One such improvement is Internal Voice meet them face-to-face so they can receive percent of the new car purchasers, desire forResponse (IVR). IVR is an automated the special gift that is waiting for them. a new automobile will lead them to make atelephony system that allows potential purchase within the next 12 months. The ... the numbercustomers to be pre-qualified for an auto study also revealed that 43 percent of adultsloan based on the factors selected by the who plan to purchase a new vehicle respondeddealership. The system will ask questions one reason to direct mail by visiting the dealer in person, for manysuch as monthly household income, desired 28 percent visited the sender’s Web site andmonthly payment and job time. Some systems 14 percent called an 800 number. Since directare voice responsive and will understand consumers mail from an automotive dealer can help to buy a newand move forward based on the customer’s educate consumers on future purchases, it isvoice answers. Other systems require that also an effective medium to increase futurethe customer respond using the touch-tone keys on the phone. Bilingual systems car is simply dealership traffic.make this convenience available to your because they Promotional Insurance is used for excitingSpanish-speaking customers as well. Nextthe system will ask for permission to pull want one. and incredible giveaways. Large giveaways will increase response rates of direct mailthe customer’s credit so you can have access campaigns by bringing in the buyer whoto the maximum amount of information Promotional gifts have been used for feels lucky. How many of your customersbefore the customer visits the lot. When sometime, and remain effective when pay for lottery tickets? When a car or athe customer has completed the process, properly presented in the voicemail and large cash prize is given away, insurancethe dealership is notified immediately by direct mail offers. Promotional gifts also can be purchased for as little as 6 percent offax or email. Advanced IVR systems have remain an inexpensive and effective way to the cash value. Insurance is available up toa web interface that allows users to go in to increase response rates and to promote the $1,000,000. Insuring a percentage of a car orthe call records, listen to them, assign them carnival like atmosphere and excitement cash giveaway gets you the same attentionto salespeople and even tag leads with their level that can lead to buying frenzies. The and publicity with less risk and littlestatus in the sales process. gift will also bring in the buyer who is riding additional expense. Take the time to find out the fence or just deciding to enter the market. if promotional insurance is right for you.Another innovation that improves the This justifies the visit and if nothing else thiseffectiveness of direct mail is Voice Mail customer will often feel obligated to give The effectiveness of Web surveys has grownBroadcasting (VMB). A VMB tool will get you a chance to earn his or her business exponentially over the past couple of years. 18
  16. 16. Web surveys are very similar to internal planning on buying a new vehicle while Generation Y adults are sixvoice response programs but instead of the within the next 12 months because percent more likely than total adultsphone, they use the computer. Customers they need one for work, while 4 to be motivated by the same factor.are directed to a Web site that will ask the percent need one because they have a • Of the Younger Baby Boomersquestions needed to get the customer pre- new driver in the family and 3 percent (1956-1964) surveyed, 21 percentqualified. Questions about their wants and can afford a better car. said a rebate offer motivates them toneeds give the dealership the ammunition • Only 5 percent of new car purchasers visit a dealer when shopping for anto deliver these customers when they are planning on making a purchase automobile, compared to 16 percentarrive for their scheduled appointments. A within the next 12 months based on of total adults.multiple-choice format allows the customer lower prices, lower interest/financing • Generation Y adults are 5 percentto design their own close by sharing the or price incentives. more likely than total adults to betypes of incentives and discounts that motivated by a special trade-in offer.motivate them to make a buying decision. Men More Likely to Purchase a New Car.When the survey is completed the customer • 24 percent of single Generation Y What Makes Auto Loan Applicants Openis informed that they have won a prize and (1977-1994) men stated they plan Direct Mail?they are directed to the dealership Web site to purchase a new vehicle within the • 66 percent of direct mail readers whoor showroom floor. Upon completion, the next 12 months. plan to apply for an auto loan saidresults are immediately faxed or emailed to • In comparison, 16 percent of they are more likely to open a packagethe dealership for follow-up. These are the Generation Y women have plans to that looks interesting.hottest leads and should be called within 15 purchase a new vehicle within the • Of the direct mail readers who haveminutes with a deal structured the way the next 12 months. plans to apply for an auto loan, 64customer said they like to buy. • 20 percent of men with a household percent are more likely to open a piece income of $75,000+ and some college based on the timing of its arrival.There are a number of ways to compliment education have plans to purchase a • For 60 percent of direct mail readersa direct mail campaign. Economies of scale new automobile within the next 12 who plan to apply for an auto loan,can be realized by finding a company that months. having their name on the front of theis large enough to handle every step of the • Similarly, 15 percent of women with envelope will influence their decisionprocess. Direct mail will increase the sales, a household income of $50,000+ and to open.profits, and most importantly, bottom line. some college education reported they • 57 percent of direct mail readers who plan to purchase a new automobile plan to apply for an auto loan areWhen considering direct mail, keep in within the next 12 months. more likely than total adults to openmind these useful statistics provided by the packages that contain a special offerVertis Customer Focus® 2005: Automotive Main Incentives Motivating Adults to Visit or a Dealership. • 32 percent of Generation X (1965-Top Reasons Why Adults Are Buying 1976) adults were motivated to visit aNew Cars dealership based on price incentives; • 8 percent of the new car purchasers five percent more than the average said they are motivated to purchase a adult. new car because of their current auto’s • Generation X adults are 9 percent Tony Cantrell is the president and CEO of Automotive Consulting Co. He can be mechanical problems. more likely than total adults to be contacted at 800.901.2859, or by e-mail at • 11 percent of new car purchasers are motivated by a special financing offer, 2005 19
  17. 17. sts ms ls fis sf BrianTracy sales and training solution Increasing Your Earning Potential Throughout most of field is probably doubling every five years, ability is largely determined by the perception human history, we this means that fully 20 percent of your of excellence, quality, and value that others have been accustomed knowledge and your ability in your field is have of you and what you do. The market to evolution, or the becoming obsolete each year. Ask yourself, only pays excellent rewards for excellent gradual changing and “What parts of my knowledge, skills and performance. It pays average rewards for progressing of events work are becoming obsolete? What am I average performance, and it pays belowin a straight line. Sometimes the process doing today that is different than what I was average rewards or unemployment for belowof change was faster and sometimes it was doing one year ago and two years ago?” What average performance. Customers today wantslower, but it almost always seemed to be are you likely to be doing one year, two years, the very most and the very best for the veryprogressive, from one step to the other, three years, four years and five years from least amount of money, and on the best terms.allowing you some opportunities for planning, today? What knowledge and skills will you Only the individuals and companies thatpredicting and changing. need and how will you acquire them? What provide absolutely excellent products and is your plan for your economic and financial services at absolutely excellent prices willToday, however, the rate of change is not only future? survive. It’s not personal. It’s just the way ourfaster than ever before, but it is discontinuous. economy works.It is taking place in a variety of unconnected We are now in the knowledge age. Today, theareas and affecting each of us in a variety of chief factors of production are knowledge To earn more, you must learn more. Youunexpected ways. Changes in information and the ability to apply that knowledge to are maxed out today at your current levelprocessing technologies are happening achieving results for other people. Your of knowledge and skill. However much youseparately from changes in medicine, changes earning ability today is largely dependent are earning at this moment is the maximumin transportation, changes in education, changes upon your knowledge, skill and your ability you can earn without learning and practicingin politics and changes in global competition. to combine that knowledge and skill in such something new and different.Changes in family formation and relationships a way that you contribute value for whichare happening separately from the rise and fall customers are going to pay. And here’s the rub. Your accumulatedof new businesses and industries in different knowledge and experience is becomingparts of the country. And if anything, this The Law of Three says that you must obsolete bit by bit, day by day. The knowledgerate of accelerated, discontinuous change is contribute three dollars of profit for every in your field is doubling every three to fiveincreasing. As a result, most of us are already dollar that you wish to earn in salary. It costs years. That means that your knowledge mustsuffering from what Alvin Toffler once called, a company approximately double your salary double every three to five years just for you“future shock.” to employ you in terms of space, benefits, to stay even. supervision, and investment in furniture,You can’t do very much about the enormity fixtures, and other resources. For a company The solution to the dilemma of unavoidableof these changes, but the one thing that you to hire you, they have to make a profit on what change and restructuring is continuous self-can do is to think seriously about yourself and they pay you. Therefore, you must contribute development. Your personal knowledge andyour basic need for security and stability. In no value greatly in excess of the amount you your ability to apply that knowledge arearea is this more important than in the areas of earn in order to stay employed. To put it your most valuable assets. To stay on topjob security and financial security. You must another way, your earning ability must be of your world, you must continually add togive special attention to your ability to make considerably greater than the amount you are your knowledge and your ability. You musta good living and provide for yourself in the receiving, or you will find yourself looking continually build up your mental assets ifmonths and years ahead. for another job. you want to enjoy a continuous return on your investment. And only by building onAbove all, to position yourself for tomorrow, To position yourself for tomorrow, here is your current assets do you stop them fromyou must think continuously and seriously one of the most important rules you will ever deteriorating.about your work today, your earning ability, learn: “The future belongs to the competent.”and the work that you will be doing one, The future belongs to those men and women By engaging in continuous self-improvement,three, and five years from today. You must who are very good at what they do. Pat Riley, you can put yourself behind the wheel of yourplan to achieve your own financial security, in his book The Winner Within, wrote that, “If own life. By dedicating yourself to enhancingno matter what happens. you are not committed to getting better at what your earning ability, you will automatically you are doing, you are bound to get worse.” be engaging in the continuous process ofCharles Kettering said that you should give To phrase it another way, anything less than personal development. By learning more, youa lot of thought to the future because that is a commitment to excellent performance on prepare yourself to earn more. You positionwhere you are going to spend the rest of your your part is an unconscious acceptance of yourself for tomorrow by developing thelife. One of the greatest mistakes that people mediocrity. It used to be that you needed to be knowledge and skills that you need to be acan make, and the one with the worst long- excellent to rise above the competition in your valuable and productive part of our economy,term consequences, is to think only about the industry. Today, you must be excellent even to no matter which direction it goes.present and give very little thought to what keep your job in your industry.might happen in the months and years ahead. Brian Tracy is the chairman and CEO Excellence, quality, and value are absolutely of Brian Tracy International. He can beImagine what your job will look like five essential elements of any product or service, contacted at 866.300.9881, or by e-mail atyears from today. Since knowledge in your and of the work of any person. Your earning 20