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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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  2. 2. There’s only one place that has more car shoppers than the newspaper. But that tends to happen when you have more cars than the newspaper. Where do 2.7 million vehicles and millions of. serious shoppers a month come together? It isn’t the newspaper. It’s the ultimate automotive marketplace. To reach more buyers, call 1-888-249-6860.©2006 is a trademark of TPI Holdings, Inc. and is used under license.
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  4. 4. SUMMITIV BEST PRACTICES LEADERSHIP • INTERNET • CRM • MARKETING • BDC • SALES Wow! I was hoping to gain at least five new ideas to take our Internet sales to the next level. I had more than five the very first day. The thing I liked best was the people. The sharing of information during breakfast and lunch was just as help-ful as the quality presentations. Great people whowork hard and play hard ... after all it was Las Vegas. Ienjoyed the casual and professional environment andthe opportunity to visit with 15 vendors in betweenspeakers.“What happens in Vegas goes back to Texas.” I met withmy Internet team of 10 professionals and started toimplement ideas on Saturday afternoon.This was my first Summit and I hope I can come againin November!Great Show ... Fabulous Ideas! Summit IV was another Joe Healy Internet Director, Lawrence Marshall Dealerships “This is my second Summit and they keep getting better. It’s hard to be able huge success, and to put all the ideas into practice because there’s just so many! Great event, great speakers, and great location.” Heather Conary Web developer, congratuations to all who Downeast Toyota “We seldom know what we don’t know. Learn what you don’t know by attending the next AutoSuccess Summit. Apply the nuggets of wisdom presented at these attended and participated summits, and your return on the invest- ment will be outstanding. It’s like a 20 Group for the Internet!”” Mike Parsons Director of e-commerce, Asbury Automotive GroupSign up now for the Best Practices Summit V, November 2006 - Las Vegas • Call 866.396.7050 for dates
  5. 5. Take our customers...Please!Why chase false leads when you can have real,qualified customers?She completed an extensive application, pre-qualifiedwith flying colors, received her purchase check, andnow she just needs a car. Want her contact info?Become a myAutoloan Preferred Dealer now.Our approved customers arrive with financing in place.Our qualified customers have passed an extensiveverification process through our Preferred Placement®technology. Now, all you have to do is put them in thedriver’s seat.Each month, we approve hundreds of qualified, ready-to-buy customers in your area. They prefer all brands,all models, and great service. But they don’t requireselling – they’re ready to buy!To choose your spot on our Preferred Dealer Networkand start getting these customers, give us a call toll freeat 866.625.2668, send an email to,or visit our Web Site at partnership with Complete Customer Contact Details Exclusive Territories Entire Credit Spectrum Applicants Exclusive Real-Time Leads by Zip Code 24/7 Online Dealer Access Customers are Buying Now REAL LENDERS - REAL LOANS - REAL TIME
  6. 6. Gaining Visibility 8 BrianTracy Prospecting: Establishing Relationships 9 ZigZiglar Characteristics of a Pro 10 TomHopkins Increasing Total Yield 12 MikeTamas Developing the Traits of a Leader, Part 1 13 SeanWolfington Are You Checking the Bad Guy List Complying with OFAC Regulations 14 CharlesArrambide Sell More Online Immediately and Keep Your Best People 16 DavidKain Going Up What’s an Elevator Speech and Why Do You Need One, Part 1 18 PattiWood The Value of a Loyal Customer 19 DavidJohnson The Speed of Doing Business 20 JimAdams Investing the Fundamentals 22 TimShea Moving Customers From the Internet to Your Showroom How Modern Consumer’s Helped Special Finance Leader Earnhardt Do Just That 24 KevinMurphy Five Keys to Selling 100 Extra Cars a Month FordDirect Internet Dealer of the Year Shares Best Practices 26 BryanHopkins The Essentials of Leasing More Cars 28 JeffMorrill Don’t Let Profits Walk Out the Door 30 RichardLibin Scott’s Individualized Consultation Transcripts 32 ScottJoseph The 7 Commandments of Selling, Part 1 34 DavidJacobsoncover 24 A Hidden Cash Asset - Your Customer’s Future Credit Card Sales Higher Response Rates and More Leads Fool-proof Advertising with Vanity Numbers 36 38 LauraNoonan GlennGoldman The Most Important Decision of Your Life 39 MarkTewart The No. 1 Suzuki Dealership in the Nation is Selling 25-40 Referral Appointments Per Month 40 GaryLinam Patrick Luck, Editor & Publisher Courtney Paris, Sales-improvement Strategist Susan Givens, Vice President Brian Ankney, Sales-improvement Strategist 3411 Pinnacle Gardens Drive Louisville, Kentucky 40245 Thomas Williams, Creative Director Brian Balash, Sales-improvement Strategist toll free: 877.818.6620 facsimile: 502.588.3170 Dave Davis, Creative Strategist Charlie Tierney, Sales-improvement Strategist web: helping to promote... Acts 10: 34-35 And Peter opened his mouth and said:“Truly I perceive that God shows no partiality, but in every nation any one who fears Him and does what is right is acceptable to Him...” God is the source of all supplyAutoSuccess 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. 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 magazine to which thismagazine 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 inwhole 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 thatnames 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.
  7. 7. sts fos ls ms sf fis BrianTracy leadership solution Gaining Visibility Have you noticed that dress. Dress for the position two jobs above soon be noticed by people who are higher up. some workers receive your own. Many men and women with limited contacts more promotions and and limited resources have risen to positions greater pay than their Join professional associations. of great prominence as the result of getting colleagues, despite Research professional associations to know the key community leaders who the fact that they connected with your business or field. Begin participate in charitable organizations andare apparently not as competent as you? by attending meetings as a guest to carefully professional associations.This doesn’t seem fair. Why should some assess whether or not a professionalpeople get ahead when others, who seem association can be of value to you. Determine Be able to set be working much harder and even longer if the members are the kind of people you Learn how to separate the relevant fromhours, get passed over for promotion and the would like to know and are well established the irrelevant when facing the many tasksadditional rewards that go with it? in their careers. Then, if you have decided of the day. Managers place very high value that becoming known to the key people in on a person who can set priorities and moveThe fact is, to be a great success, it is important this association can advance your career, quickly to get the job finished. Dependabilitynot only to be good at what you do but also to take out a membership and get involved. in job completion is one of the most valuedbe perceived as being good at what you do. Pick a key committee and volunteer for traits in the American work force. WhenHuman beings are creatures of perception. service. Find out which committee seems to your employer can hand you a job and thenIt is not what they see but what they think be the most active and the most influential walk away and never worry about it again,they see that determines how they think and in that organization and then step up to the you have moved yourself onto the fast track,act. If one person is perceived as being more plate. Volunteer your time, expertise and and your subsequent promotion and pay arepromotable, then it is very likely that he/she energy, and get busy. Attend every meeting. virtually guaranteed.will get additional responsibilities and more Take careful notes. Ask for assignments, andmoney, even though there are others that can complete them on time and in an excellent Upgrade your work-related a better job, if given the chance. fashion. This gives you an opportunity Continually look for ways to keep your skills to perform for other key people in your current, and make sure that your superiorsFortunately, there are several things that one profession in a non-threatening environment. know about it. Look for additional coursescan do to increase visibility and accelerate You give them a chance to see what you can you can take to improve at your job, andthe speed at which they move ahead in their do and what kind of a person you are. You discuss them with your boss. Ask him/hercareer. expand your range of valuable contacts in to pay for the courses, but make it clear that one of the most effective ways possible. The you’re going to take them anyway. Also,Develop competence. people you get to know on these committees ask your boss for book and audio programDetermine what parts of your job are most can eventually be extremely helpful to you recommendations. Then follow up byimportant to your boss and to your company in your work and in your career. reading and listening to them and asking forand then make the decision to become very further recommendations. Bosses are verygood in those areas. You must be perceived impressed with people who are constantlyas being very competent at what you do. striving to learn more in order to increaseThat perception alone will bring you to theattention of more people faster than you The fact is, their value to their companies.can imagine. The perception of excellentperformance will open up opportunities to be a great Develop a positive mental attitude. People like to be around people they likefor greater responsibilities, higher pay and success, it is and tend to promote them. A consistent, important notbetter positions. Becoming good at what you persistent attitude of cheerfulness anddo should be the foundation of your strategy optimism is quickly noticed by everybody. only to be goodfor gaining higher visibility and rapid When you make an effort to cultivate anadvancement in your career. attitude of friendliness toward people, they,Pay attention to your overall image. at what you do in turn, will go to extraordinary efforts to open doors for you.How you appear to others makes a realdifference. A recent survey of personnel but also to be In the final analysis, taking the time toexecutives found that the decision to hire ornot to hire is made in the first 30 seconds. perceived as become an excellent human being will do more to raise your visibility and improveThere are many elements of your life overwhich you have no control. But your external being good at your chances for promotion than will any other single thing that you can do. You candress and appearance are totally a matter ofpersonal preference. Through their choice what you do. do it if you really want to.of clothes, their grooming and their overallappearance, individuals deliberately makea statement about the kind of people they Join a well-known, charitable organization.are. The way you look on the outside is a Become active by donating your services to Brian Tracy is the chairman and CEOrepresentation of the way you see yourself its annual fund-raising programs. You may of Brian Tracy International. He can beon the inside. It’s a good idea to dress the not be wealthy now, but you do have time, contacted at 866.300.9881, or by e-mail atway the senior people in your company and your willingness to give of yourself will 8
  8. 8. sts fos ls ms sf fis ZigZiglar sales and training solution Prospecting: Establishing Relationships Selling is a contact 5. Offer a free service. and Learn” programs. What an educational sport. By increasing We all like free stuff. So do your customers way to establish a relationship. your contacts, you and their business associates. Perhaps you can increase your selling make a presentation in a “brown bag lunch” Zig Ziglar is the chairman of the board of opportunities. Be format. Maybe you can bring in an associate Ziglar Training Systems in Dallas, TX. This creative. to address physical wellness, financial issues, article was reprinted with permission. All parenting or family matters. A vice president rights reserved. He can be contacted at1. Take a doctor jogging. of a staffing agency here in Dallas conducts 866.873.0026, or by e-mail atOne of our clients sells to hospitals, clinics 30-minute sessions on what she calls “Lunch doctors. She was having a difficult timemeeting with a certain doctor. The doctor’sstaff told the sales rep that she (the doctor) wasa jogger and that she participated in variousvolunteer activities within the community.The sales person thought outside the box andentered the doctor and herself into a 5K runfor “Race for the Cure.” What an active wayto establish a relationship.2. Hit a bucket of golf balls.Do you play golf? (I do, but I still stand tooclose to the ball AFTER I hit it!) Does yourprospect play golf? Instead of investing anentire four hours on the course, why don’tyou invite your prospect out to the drivingrange and hit a bucket of balls for an hour?You don’t play golf? Well, try this. Pay foryour prospect to receive a golf lesson by alocal pro. What a swinging way to establisha relationship.3. Celebrate obscure holidays.For instance, did you know that Januaryis Hot Tea Month? Perhaps you know ofa prospect that is a hot tea drinker. Januaryis your month to make an impression.September is Better Breakfast Month. Maybeyou should celebrate by taking a prospect toyour favorite breakfast restaurant. October isNational Popcorn Popping Month. Is there anoffice that could use an extra large containerof assorted popcorn? You’ll be a big hit if youcan find one. What a fun way to establish arelationship.4. Send greeting cards.Hand written cards get opened. Hand writtenmessages get read. Capitalize on obscure daysbecause you can rest assured that you are theonly sales person celebrating these days. Aug.16 is National Tell a Joke Day. (Don’t get mestarted!) Sept. 14 is National Cream FilledDonut Day. Oct. 5 is National Do SomethingNice Day. Buy a card. Write a message. Mailthe card. Wait three to five days. Call theprospect and tell her you were the one whosent the card on International Tuba Day (May7). Greeting cards can help separate youfrom the competition. What a creative way toestablish a relationship.june 2006 9
  9. 9. sts fos ls ms sf fis TomHopkins sales and training solution Characteristics of a Pro There are many traits anxiety and pain you can handle before you strive daily to improve their skills. They or attributes common call it quits. Are two rejections and three have jumped in with both feet and are willing to those who can be No’s enough to send you looking for another to pay the price of learning what they have to called professionals in profession? If so, you have a low threshold know to be a professional in this business. the field of automotive of desire and a high one for rejection. Think They’ve committed to sales as their career. sales. A particular about what you’re willing to give or do to They are constantly striving to improvequality that separates the average from the achieve what you really want. themselves by attending seminars andgreat can be expressed by one simple word functions, listening and reading sales material- discipline. Desire without discipline leads to and staying abreast of new technology that disappointment, disillusionment and despair. will assist them in serving their clients moreYears ago, I used to teach that one of the top Don’t let yourself be disappointed. Develop efficiently.qualities separating the average from the the discipline you need to succeed.great was DESIRE. However, I have since The live by this motto: “I must do the mostmet and observed many students who had Professionals pay close attention to details. productive thing possible at every giventhe overwhelming desire to succeed, but They ask questions that help them get a moment.” Those 12 simple words literallylacked the discipline required to lay out the better understanding of exactly what their changed my life and my career nearly 40specifics of their paths to success, stay on clients are looking for in a vehicle - style, years ago. Whenever I felt doubt about whattrack and ultimately fulfill their potential. performance, mileage, color and size. They I was doing I would glance at these wordsSo, your desire to achieve must be tempered have their paperwork in order - properly hung by my desk, get re-focused and do thewith your ability to discipline yourself to do filled out, recorded and filed. They return next most important thing.what’s necessary at all times. phone calls promptly - even if it’s just to leave a quick message that they’ll be back I hope you’re not one of those people who isMost of the great ones have an overwhelming in touch later. They keep their promises “just giving it a try.” People with that attitudedesire to prove something to someone. They and have answers ready when questions are have a plan of action for when they fail.know they can be the best in their field and asked. You’ve heard it, I’m sure. “If I don’t makeare out to prove it to the world, or maybe just it in this, I can always....” They have a planto themselves and their families. This desire They are highly goal-oriented. for failure. They’re anticipating it, and willburns so strongly within them that it keeps They are striving for a certain number of cars probably get it. Planning to succeed is sothem moving in the right direction. It keeps sold each month, a certain income, a trophy much more exciting than planning to fail.them positive on days when things don’t or an award. They know exactly what they’rego just right. It keeps them cheerful to their working for and have a plan detailing when Another characteristic of the top people inclients and fellow sales people. It makes and how they’ll achieve it. sales is that they give excellent service.them more efficient and professional in their They know they are paid in direct proportionday-to-day activities. It’s the fuel that keeps Do you have your goals in writing? If not, to the amount of service they give to theirtheir engines running in top condition. you are a wisher, an undisciplined dreamer. clients. They understand that we are in the You haven’t really committed yourself to people business. We don’t sell vehicles.The desire they have to succeed is not wholly achieving anything. You’re like those average We get people happily involved in owningselfish either. In their quest for success, they people in your office who say, “Sure, I want vehicles by satisfying their needs.sincerely want to find those people looking to make more money, but after the day I hadfor a new vehicle and fulfill their needs. yesterday, I’m not leaving the office today.”Their success is brought about by bringinghappiness to those people they come in You see, the successful ones, the truecontact with and serve. professionals, begin where the failures stop. World-renowned master sales trainer Tom They do what the failures are afraid or too Hopkins is the chairman of Tom HopkinsNow, I can’t tell how much desire you have to lazy to do. International. He can be contacted atmake it in this field. Only you know that. The 866.347.6148, or by e-mail atanswer comes in knowing how much stress, The great ones understand that they must If Youre Involved With Increasing Revenue, You Should Have One. Buy one subscription for $75 and Read get one FREE! 866.269.8604 10
  10. 10. Dealers Consistently Rate Dealix Their #1 Internet Sales Lead Provider, Year after Year 2002 2003 2004 2005 2006 Lead Quality, Service Lead Quality Highest Overall Highest Overall and #1 in Auto Dealer and Profit per Car sold and Lead Quantity #1 Provider to the Wards Monthlys Dealers e-Dealer 100 Choice Awards If youre thinking about whether Dealix will help you sell more vehicles, ask the people who know. The Cobalt Group, including Dealix, is used by 94% of the Wards e-Dealer 100. The Best Dealers Use Dealix. "Dealixs third party leads and search marketing service, PowerSearch, help us get the maximum visibility and customers, with the minimum investment, in the shortest amount of time." Mike Zavell, Internet Sales Manager Gunther VW of Coconut Creek, Pompano Beach, FL "Our Dealix leads have the highest closing ratio of any other lead source." Paul Miller, Internet Director Capital Ford, Raleigh, NC "Dealix customer service is unparalleled. I have been a long time customer of Dealix and use their leads because their lead quality is the best in the industry, bar none. Theyre a great group of people to work with. I wish I could clone my rep Dolores. She is the best!" Gilbert Chavez, Internet Director Phil Long Motor Group, Colorado Springs, CO For complete details on these studies, and to get a free lead estimate, contact Dealix at (800) 717-8079, or visit us at Drives Success.
  11. 11. sts fos ls ms sf fis MikeTamas f&i solution Increasing Total Yield Are you happy with most of their PRU income from rate. What our industry, this program certainly brings a your F&I department’s happens to your store’s total yield if the value-added concept to both customers and production? Is your customer refinances? Are you maximizing dealerships. For starters, this program is only PRU where you want total yield by offering the proper products? available if the customer finances at your it? What are you willing When was the last time you reviewed and dealership. Should the customer refinance, he to do about it? Because updated the products on your menu? Do the or she will lose the benefits of the program.of the pressure from above to get volume, products you offer bring perceived value This is also a great way to increase financemany sales managers do anything they can to to your customers? Does your menu offer a penetration and decrease chargebacks through“move” a unit, even if it means losing money service contract in each package? refinancing. Unlike credit insurance, thison the front end. Business managers then program is not rated by age or health. Almosthave the task of making the total yield of the Many stores are loading up their menus by everyone qualifies, which means you can offerdeal positive. offering products such as dent repair, GPS it to everyone financing a car at your store. tracking devices and paint protection.Does your business manager have the proper To ensure your menu produces profitabletools and training to improve the total yield? Recently a program hit the industry that results, be sure your business manager isThe buzz in F&I over the past few years has actually allows customers to bring their properly trained; then review the productsbeen menu selling and legal compliance. vehicles back to the selling dealership being offered to be sure they are in tune withDon’t let your business managers use a menu without facing any negative credit effects if the needs of today’s customers. Combining awithout being professionally trained. The a certain life-changing event has occurred. professionally trained business manager withgeneral consensus seems to be that by simply This criterion covers a wide range of a properly balanced menu will increase totalusing a menu, production will increase and everyday circumstances, including physical yield in your dealership.the store will stay out of the legal doghouse. or mental disability, loss of driver’s license or involuntary job loss. Many more real-life Mike Tamas is the vice presidentLook at increasing total yield through product situations are covered, as well. of training with American Financialsales. & Automotive Services. He can be With today’s unsteady economy, massive lay- contacted at 866.286.1339, or by e-mail atMany stores that use a menu still generate offs and negative-equity epidemic gripping 12
  12. 12. sts fos ls ms sf fis SeanWolfington leadership solution Developing the Traits Turn Your Internet Leads of a Leader, Part 1 into Showroom Look at any leader and you’ll notice he food that requires no preparation, they charge major purchases without the resources to pay Appointments... or she has developed for them and they have access to anything a collection of traits and everything at a moment’s notice. It that have helped him would appear to go against our very culture or her arrive at the top to reserve a reward until after the job is done,- at a place where they are considered one but those who do will find that self-disciplineof the best, if not the best, at what they do. becomes part of the fiber of their character.These leadership traits include discipline, theability to prioritize, to build trust, the ability Stay Focused on Resultsto influence others and to cast vision. In this Anyone who focuses on the difficulty ofarticle we will look closely at the ability to the work instead of its promised results orbuild self-discipline and examine the other rewards will easily become discouraged.leadership traits in future articles. Discouragement breeds procrastination, and if a person dwells on those difficulties tooNo matter how gifted a leader is, his gifts long they develop self-pity rather than self-will never reach their maximum potential discipline. The next time you’re facing awithout the application of self-discipline. critical task and you find yourself thinkingSelf-discipline is a key to success. Self- of how daunting it is, and this leads you todiscipline often means doing more than thinking of doing what’s convenient to avoidwhat’s necessary, what you need to do to paying the price of the hard work ahead,prepare and to grow even when it’s tough and change your focus. Count the benefits ofit hurts and when you’d rather do something doing what’s right and then dive in.else. Self-discipline means refusing to quit.A person who refuses to quit knows that their Do Right and You Will Feel Right “WorldDealer has helped us with alljob begins when others stop trying. Self-discipline has rewards other than just facets of our web getting results. It feels good to do good initiative and we haveSelf-discipline positions a leader to go to and the people who do whatever it takes to had significant andthe highest level and is a key to leadership do things right enjoy the process and the consistent growth forthat lasts. If you want to become a leader for outcome a lot better than those who cut the past six years.whom self-discipline is an asset, here are a corners. As you do the big and little things Their customer servicefew action points: right, it builds your internal architecture is outstanding and I would recommend and character, but if you take short cuts that them to any dealer.”Challenge Your Excuses make you more comfortable in the moment,To make self-discipline part of your lifestyle, it tears down that internal architecture that - John Taylor, Findlay Auto Groupyou must challenge and eliminate any holds up your character and self esteem.tendency to make excuses. Some commonones include, “I don’t have time,” “I have The most important tasks are the small ones that no one knows about but you. By doing Call for a FREEtoo many responsibilities,” “I don’t knowhow to” or “I’m not good at.” You get the the little things well, we prepare ourselves for the big things and each job well done evaluation to see ifpicture and can probably think of a fewmore. The worst excuse of all is “I have outside the sight of others is a private victory that strengthens our self-discipline and you qualify for ourto … (you fill in the blank)” because itconveys a victim attitude. Change “have” to character. IBDC program“choose” and watch your excuse slip away. You may have talent and you might even seeIf you have several reasons why you can’t be a lot of motion, but without self-discipline • Call Center Servicesself-disciplined, realize that they are really you’ll see little sustained and concrete • Dynamic Web sitesjust a bunch of excuses and challenge each results. So start challenging your excuses,and every one of them to get to the next level reserve your rewards until the difficult tasks • LMSas a leader. are done and stay focused on the results and • SEO/SEMRemove Rewards Until the Task is Done you will find yourself building self-discipline and success as a leader today. • Media Buying/Any industry that pays goof-offs and go- Productiongetters equally will sooner or later find itselfwith more goof-offs than go-getters. If youlack self-discipline you may be in the habitof expecting your rewards before hitting Sean Wolfington is the owner ofyour target. In today’s culture of instant He can be contactedgratification this can be easier said than done. at 866.802.5753, or by e-mail at e-mail: info@worlddealer.netToday, people reward themselves with fast 866.429.6826june 2006 13
  13. 13. sts fos ls ms sf fis CharlesArrambide leadership solution Are You Checking the Bad Guy List Complying with OFAC Regulations Checking the so-called blades just as you would a customer buying type of service. If you use a credit “Bad Guy” list should a new car. Additionally, you must screen bureau to screen credit transactions, be part of your hiring employees and vendors against the database. remember that you also need to screen and sales processes. employees, payments to vendors and If you’re not familiar Penalties for non-compliance cash transactions.with this list, you may know it by another Violators could face harsh criminal and civil • Know what to do if a name matchesname, the “OFAC” list or the “Specially penalties. Penalties include fines ranging the SDN list. OFAC has a process forDesignated Nationals (SDNs) and Blocked from $50,000 to $10 million, and 10 to 30 handling “hits,” and it involves a littlePersons” list. years in prison for willful violations. Civil research. Is the name an exact match penalties range from $11,000 to $1 million or close? Is the person located in theThe U.S. Department of the Treasury’s Office for each violation. same general area as the SDN? If not,of Foreign Assets Control (OFAC) maintains you may have a “false hit.” If it looksthe list, which incorporates the names of How to comply very similar, call OFAC’s compliancethousands of suspected and known terrorist If you are not in compliance with OFAC hotline at 800-540-OFAC (6322) fororganizations, drug traffickers and others. requirements, take immediate action toward verification.OFAC administers and enforces economic complying. Here’s how to get started: • Document and retain screening records.and trade sanctions against targeted foreign Store them in the appropriate customer,countries, terrorism-sponsoring organizations • Develop a written policy stating vendor or employee files. If a problemand international narcotics traffickers. compliance with the law is mandatory. arises, you’ll be able to show your • Assign responsibility for coordinating screening results.How does OFAC’s list apply to your the program to a trusted employee.dealership? • Determine who and what you will For more informationThe government prohibits all U.S. persons screen. This should include employees What I have provided is strictly an overview.from doing business with any individual, and all required transactions (virtually Please talk with qualified legal counsel forgroup or entity listed. Someone listed could all sales and service cash and credit further details and to ensure that you are inattempt to buy a vehicle from you or apply transactions, as well as payments to compliance. Another good resource is the U.S.for a position at your dealership. vendors). Department of the Treasury Web site, http:// • Decide how you will screen names. The these scenarios: process doesn’t have to be expensive or ofac/, which provides answers to frequently • A dealer rents a truck to a customer cumbersome. You can: asked questions and much more. without checking OFAC. The customer • Screen names using OFAC’s Web fills the truck with explosives, parks it site. Note: OFAC updates the list as What’s ahead? in front of a building and lights a fuse, needed, which is fairly frequently, Next month I’ll address self-audits – things destroying the building. so don’t rely on a printed version. you should be checking before someone else • A dealer hires an employee without • Screen names using vendor does. checking OFAC. The employee works software programs. There are for two years. One day he doesn’t show many options, including some This information is presented for risk up for work or call. Later, it’s discovered vendors that specialize in the management purposes only. It is not to be the employee was part of a terrorist automotive industry. Here are a construed as legal advice or legal opinions. attack. few to consider: Consult your legal counsel for assistance with • Dealership Defense LLC OFAC compliance. Universal UnderwritersIn both cases, if an investigation shows ( Insurance Company, its affiliates, agentsthat the perpetrator was on the SDN list, • Automotive Compliance and employees assume no responsibilitythe dealers could be held accountable for Consultants or liability for making this informationneglecting to screen the names. ( available. • EthosHROnlineWhen are you required to check the OFAC ( • Equifax ( requirements apply to all cash, credit • First American CREDCOand lease transactions, as well as consumer- ( Charles F. Arrambide is assistant viceand business-purpose transactions. There is • Let someone else check. There are president and associate risk officer for Universal Underwriters Insuranceno minimum-dollar amount on purchases. vendors who will implement software Company. He can be contactedFollowing the letter of the law, you should and perform screening for you. Also, at 866.347.5019, or by e-mail atscreen a customer buying windshield wiper most major credit bureaus offer this 14
  14. 14. Why limit your profit improvement to just F&I? There are many pieces to the profit puzzle. Some companies focus on just one, and that’s not good for your bottom line— or your customers.At Resource Automotive, our 40 yearheritage has taught us that long-term profitability comes froma balanced strategy of driving revenues through processimprovement in all departments, not just one.Each of our products and services embeds innovative technologyas well as adherence to regulatory and compliance requirementswithin the automotive industry. Additionally, all of our tools aretailored to fit your specific sales, service and customer satisfactionobjectives.For immediate impact—throughout your organization—call (847) 953-6000us today.
  15. 15. sts fos ls ms sf fis DavidKain marketing solution Sell More Online Immediately and Keep Your Best People In the mid- to late 90s, pleased with the traditional sales process of assist them. It is no different to me than the when dealerships were back-and-forth negotiations with the sales customer who had researched at their library, starting to consider the manager and wanted to have a streamlined bank or credit union prior to their dealership Internet as a marketing buying solution. It was suggested by many visit when I first started selling in the 1980s. tool, dealership owners online pioneers that the Internet provided I had to adapt my selling to credit them for and managers were the perfect environment to bypass the sales their due diligence while still moving themfaced with a decision: Embrace the Internet manager role and give the consumer the through the steps to the a marketing and sales tool or wait and see opportunity to complete the transaction withif it would be the “event” so many predicted. one dedicated person. This idea worked Rather than limit your sales and profit successI think the dealers who have embraced then and works now, but it is short sighted by funneling Internet customers to Internet-the opportunity are enjoying the fruits of because it sidelines some of your best only sales people, I truly feel the dealershipstheir labor and are likely morphing their dealership sales talent and, in many cases, that will sell in volume in the future willonline operations to increase their overall puts the dealership at great risk when their train their entire staff to respond to thisdealership profitability and market share with “dedicated” person leaves and takes all the ever-growing buying population and, mostmoves into parts and service, commercial experience, marketing contacts and online importantly, challenge their sales managersvehicles, auctions and more. If you are still sales ideas with them to another dealership. to add Internet sales responsibility to theirwaiting, the good news is you can still adapt already full plate. Your sales managersyour organization to this consumer - and A better solution that is long lasting is to already recognize that lot traffic is droppingdealership - friendly environment and grow weave the Internet into your traditional and this will open up their eyes to a growingyour sales and profits right away. selling system and normalize deals as much opportunity and allow them to show their as possible to satisfy the online and offline true sales talents.One of the early mainstay thoughts was to buyers. This is not a stretch to considerhave “dedicated” Internet staff to manage holding your sales managers accountable for The good news is that the current thinkingthe leads a dealership received. Why this ALL SALES - including the Internet. The old of dedicated Internet sales teams and BDCworked then, and works now, is that having adage that sales managers have full plates and teams still works extremely well, so there issomeone focused specifically on this part can’t supervise the sale of online prospects no need to abandon successful operations.of your business without distraction causes while they can manage walk-in and phone- My suggestion is to take what works andthem to make things happen in order to earn in prospects is preposterous. The best sales transfer these ideas to the overall sales floortheir paycheck. It makes sense that, if the managers want to manage the entire selling and teach your sales managers and traditionalonly way you are going to make money is environment and adapt their approaches to sales people how to effectively work withby selling vehicles online, you will improve what works for each client. It is pure art to Internet prospects. You would likely see anyour processes to the point that customers see a sales manager work with a customer immediate boost in sales. Imagine if yourespond positively and purchase vehicles who is a tough negotiator in one office, close knew that 80 percent of your customers werefrom your dedicated Internet sales person. the deal by showing firm closing skills, and in a parking lot each day at the local discount then deftly work with a first-time buyer in store – I can assure you that your salesThe interesting thing is that then, and even the next office who needs a gentle push to managers would be there too with a teamnow, the role of the dealership sales manager decide to purchase. Therein lays the reason of sales people focusing on those prospects.was not adapted to lead the charge in online the sales manager ascended to this role in the This is similar, and now I think it is time forsales in many, if not most, dealerships. first place. Why limit your growth potential you to ask your sales managers to add oneDealers and general managers abdicated by sidelining that talent when it comes to the more item to their already full plate and selltheir sales managers of the responsibility to Internet? more vehicles to online prospects.create selling processes for Internet leadswhile holding them accountable for lot With nearly 80 percent of automotive Internet David Kain is the automotive Internettraffic and phone traffic. Perhaps this set- shoppers starting the buying process online, training specialist at Kain Automotive Inc.up was born from manufacturers and lead one has to reason that many will walk in and He can be contacted at 800.385.0095, orproviders who surveyed customers and phone in after doing their research and hope by e-mail at dkain@autosuccessonline.found the customer was not particularly to find sales people who have the dexterity to com, or visit If Youre Involved With Increasing Revenue, You Should Have One. Buy one subscription for $75 and Read get one FREE! 866.852.0323 16
  16. 16. You Are Guaranteed to IncreaseYour Bottom Line in One Year by$250,000 or I’ll Pay You $10,000!Hi my name is Mark Tewart. I am This isn’t some magic-button, pie-a renowned expert in automotive in-sky fad. These are real-world andsales, sales marketing and sales proven methods for massive profitmanagement. Many of you reading improvements. It takes hard work andthis may have heard me speak at lots of commitment.seminars, state association meetings,NADA or NIADA conventions. The second reason for me beingYou may have read my articles in picky about who I work with onAutoSuccess or other magazines these projects is that frankly I don’tor seen my shows on Automotive have the time. To create the massiveSatellite Training Network. results that you and I are looking for requires a great deal of my time andWhether you know me or not, you may effort. I am an in demand speaker, MARK TEWARTbe wondering what allows me to be able trainer and consultant and I own three Tewart Enterprisesto make such an outrageous claim. The successful businesses. Because of myanswer is simple. I have accomplished time restraints, I refuse to spend time 888 2 TEWART (888 283-9278)this for my clients, every time I have and effort with wanna-be’s. I only or 513 932-9526 or email me attried without fail. If a client follows align myself with passionate people with yourmy full-proof and proven methods, committed to winning. information and we can talk.the results are as predictable as the sun Sincerely, Mark Tewartcoming up every day. That may sound The third and final reason for me beingarrogant to some of you, but to me and selective is my reputation. I can’t write “We have went from 40 cars to 130my select clients it’s just reality. ads like this and make such incredible cars a month and improved our guarantees unless I can bring the gross over $400 a vehicle in oneEvery year I am bombarded with dealers results. My reputation is beyond solid. year and expect to get to 200 unitsthat ask me to help improve their sales a month by the end of this year byand profits. I reject most of them. I only By the way, the $250,000 bottom line using Tewart Enterprises Inc.”choose a few each year to work with improvement is just an example. I have Mark Ward, Ward Chrysler,on such a large scale. There are a few had some dealers increase their bottom Carbondale, ILreasons why I carefully hand pick who lines by more than $1,000,000 in justto work with. one year. Look at this way, I don’t take P.S. Don’t miss my High $10,000 guarantees lightly. I put my Performance Management SeminarThe first reason is that it’s easy for money where my mouth is. June 15 &16 in Cincinnati, OHyou to say you want to improve butmost people don’t want to do the If you want to talk to me in strict Call 888 2TEWART or go to www.things necessary to make it happen. confidentiality, call me at: for details Visit to receive your free newsletter
  17. 17. sts fos ls ms sf fis PattiWood sales and training solution Going Up What’s an Elevator Speech and Why Do You Need One, Part 1 You’re standing at someone on your achievements. An elevator at a banquet to the guy in front of you in the the luggage carrousel speech is also used as a way to network for grocery line. It’s a way of taking advantage at the airport waiting mutual gain. Should you have the chance to of those encounters. for your baggage. talk to a stranger or an important person by When you grab your happenstance, you have something to say to Ideally, the elevator speech is a few sentences bag, the person next them that states the benefits of hiring you or that lead to a meaningful you notices your bag tag has your auto using your company, or if they already know There is no need to go into your resumedealership’s name on it and he asks if you what you do, the benefits of considering you points, your company’s mission statement orwork there. You’re able to give him your for other opportunities. It’s also important a rapid-fire delivery of your last 15 businessshort “elevator” speech and intrigue him to listen in an elevator encounter so you can successes. Leave the listener curious andenough that he asks for your card and you support and assist the person you are talking asking for more information, not bored orget his. Later that month you sell him a car. to with their goals. running away.A three-sentence “speech” has led to a greatsale. Are you well prepared for your elevator- The funky name “elevator speech” comes Why the heck do you prepare for one? Thespeech opportunity? from two sources. One source is the elevator speech prepares you to respond to salesmen’s tradition that you need to have any question or opportunity concerning whatWhat is an elevator speech? something ready to say when you have a you and/or your company have done and canThe classic “elevator speech” is essentially a chance encounter with someone in some do. If you’re thinking, “I don’t need to givestandard mini-speech to give to people you nontraditional business setting, like an an elevator speech; I’m not sales,” know thatmeet in chance encounters. You craft the elevator. The other source for the name elevator speeches serve multiple purposes. Itspeech in advance, to answer the questions is the short length of the elevator ride and is not just about getting business. Meeting“Who are you, and what do you or your the short time you may have to get your people casually inside or outside yourcompany do?” If you are giving the elevator objective across. Though it’s called an dealership can help you introduce yourselfspeech inside your dealership or to someone “elevator speech,” it’s a conversation that and establish a relationship with someonein the auto industry, this prepared material can take place anywhere with anyone, from a who can support and mentor you. It can aidcan give you the opportunity to “update” seatmate on a plane to the person next to you continued on page 42 18
  18. 18. sts fos ls ms sf fis DavidJohnson sales and training solution The Value of WOULD YOU a Loyal Customer LIKE MORE $$$ Harvard Business front? If you build it (the relationship) they School published that will come (referrals). Sounds too simple, a loyal pizza eater will doesn’t it? It is. Here is a list of a few things generate on average to remember during your follow-up to help $8,000 in their lifetime build that relationship. to the local pizza joint.The loyal car shopper is estimated to be • Be reliable: do what you say you are FROMworth $332,000. If what Joe Girard (who going to do.sold 174 retail units in one month) said is • Be professional and friendly.true and each person does have a sphere of • Be easily reachable. Give out all of your SERVICE?influence of 250 people, then one customer contact information to each customercan possibly be worth $83,000,000 (yes, and call your customers back.that’s million), assuming you are able to • Show interest in what your customermake a loyal customer of his entire sphere. does and send them referrals.Does that number sound too high to be true? • Create rapport with your customer With DealerLOGIX ServiceOPSActually, if you take into account that each of during your routine follow-up calls by service departments are:those 250 people in your original customer’s getting them to talk about themselves. Growing hours per RO and partssphere also has a sphere of their own, then • Allow genuine friendship to evolve revenue using vehicle specific Good,that number would be too low. over time. Better, Best Menus • Send handwritten notes and remember Protecting assets with full disclosureDo I believe that I will get that from each birthdays and anniversaries.customer? Of course not, but that’s not the • Accept responsibility for mistakes and Performing consistent walk-aroundspoint. The point is that, if done properly, fix them quickly. Increasing CSIyou can create loyalty in a customer that will • Commit to excellence. Improving “Fix it right the first time” bycreate wealth for you and your dealership. providing techs with consisitent andSo how do you create the type of loyalty If you serve the customer, more sales will clear issue informationin a customer that will keep them not only come. The less you have to wait on lotcoming back to see you but sending business ups, the easier you will be able to weatherto you, as well? the slumps in the car business. You are the CEO; the best way to increase your businessBy creating positive experiences for the is by having your customer help you. Thecustomer before, during and after the sale, only way that will happen is if you have aand by proactively going above and beyond compensation plan for your customers, onefrom what even the customer expects, loyalty that pays them in customer service, customer “Not only haveis formed. care and servitude. Don’t waste your day by we added $63 waiting for the next up; use that time to call per RO, butIt has been conventional wisdom that if you your customers, send out newsletters and our CSI hassatisfy a customer, you create loyalty. That’s hand-written notes. It’s much easier to ask increased too!”just not right. It’s part of making a customer for referrals after the relationship has had Pat Cox, Hajekloyal, but that in itself is just a small piece of time to develop. Of course, there is a point Chevroleta much larger, tastier pie. To create loyalty, in the relationship where you don’t have toyou must form a relationship with each andevery customer, and afterwards sales and worry about asking anymore; they just show up at your lot, asking for you. If you need Call Now or Go Onlinereferrals will come your way. Relationship any ideas on how to create loyalty with your to Schedule Your Freebuilding takes time and can never be doneduring the one and only visit they made to customers, just shoot me an e-mail. I would love to hear from you. Happy selling. Demonstration Today!your dealership to buy that new Mustang,which was only the beginning. How youfollow up after the sale is how you areable to cultivate your relationship with thatcustomer. David Johnson is the Internet SalesSo why go through the trouble of creating a Manager at Orville Beckford Ford Mercury in Milton, Fla. He can be contacted at 866.872.8150 ext. 72follow-up program that builds a relationshipinstead of just asking for referrals right up 866.347.2379, or by e-mail at www.dealerlogix.comjune 2006 19
  19. 19. sts fos ls ms sf fis JimAdams sales and training solution The Speed of Doing Business The retail automotive Joe Verde teaches that they must like an hour and a half to two hours to industry is moving at you before they’ll listen, listen before reach an agreement with a customer light speed. Today’s they’ll believe and believe before and then all of the sudden the customer new-car buyer they’ll buy. First, they have to like has to leave in 20 minutes. Professional is smarter, better you! Look at the customer, make eye sales people must learn how to control informed and, like contact and really listen. We must the sales process and make sure yourall of us, have less time than ever before. build rapport before we can begin the customer has a clear understanding ofToday’s automotive professional must be a fact-finding step of the sale. During the the time that it will take to completehighly trained professional educated with fact-finding step we must find out who the transaction. Remember, once a dealsuperior product knowledge. He/she must the vehicle is for, how many people are is secure at the desk, your customer’spossess excellent communication; follow up, in the family, what the primary use will clock starts ticking. MOVE WITH Aprospecting and selling skills. Now more than be and more. Taking the time to truly PURPOSE. If you want to make sureever we must exercise the “Speed of doing investigate the customer’s wants and that your deal is expedited through thebusiness” principal. Doing it right … now. needs will actually speed up the sales business office, make sure the following process by matching the customer with is complete:There is a fundamental difference between the right vehicle. Once the vehicle“doing it right now” and “doing it right … is selected, if you have to go into the • Make sure the credit applications arenow.” The key difference is the quality of dealership to get keys, MOVE WITH complete and signed. Many lenderswork performed and the speed in which we do A PURPOSE! Run into the dealership require references and previousit. Our goal as a professional is to make sure to get the keys and return to the lot employment information. In some casesthat the essential selling steps are completed quickly. The customer loves to see that a applications can not even be submittedin a timely fashion to ensure that the process sales person is going above and beyond without this information. Take a littlehas little to no wasted time and energy for to serve them. Secondly, the less time extra time to review the credit applicationyourself and the customer. Here are a few that the customer spends alone at the and it will speed up the process.steps to make sure that your customer has dealership the better. Once the vehiclea great buying experience and that they are is pulled from the row and opened • Insure that you have the VIN and exacthandled in a timely manner: up, the sales person should begin a mileage on the unit you are selling well-rehearsed product demonstration and on the trade in. If anything slows 1. Evaluate your process. Take a look and walk-around presentation based down the process, it’s watching the F&I at the keys to a great sales process. A on the customer’s wants and needs, process come to a grinding stop while great greeting is essential. When you which includes a great pre-planned the sales person has to return to the lot to are up, be up. Customer contact is the demonstration drive. A customer should verify information that should have been first impression. Make sure you are not go on an unaccompanied demo ride. complete before the deal was turned into dressed for success, clean shaven and An unaccompanied demo drive will not the business office. are mentally and physically prepared to allow you to demonstrate the features, greet the customer. A firm handshake, a build rapport and ask closing questions • Make sure that you have copies of warm smile and a welcome word starts and actually slows the process down. driver’s license and insurance cards, the you on the road to the sale. Letting Remember the speed of doing business trade payoff and address and any other the customer wander around on the does not mean short cutting the process; requirements before the deal is turned in lot for five minutes also creates a first it means eliminating unnecessary time for approval. impression - one that says, “These in the true sales process. guys are not very interested in me.” 3. Management and F&I. Your sales Next, we must begin to build rapport. 2. Paperwork. A sales person can spend person worked hard on this deal to get it to this point. They deserve your undivided attention. There is nothing that you could possibly be doing more important ELIMINATE PARTS DELIVERY than taking care of the customer that is sitting in your showroom. HEADACHES TODAY! Not short cutting the process only speeds up the process. Evaluate your time that you // Professional Drivers // GPS Tracking spend with every customer and make sure that you are not wasting any of their time or // Guaranteed Service // Lower Liability yours. The speed of doing business means doing it right and doing it now. FREE EVALUATION 888.374.3354 Jim Adams is the general manager at Roper Kia in Joplin, MO. He can be contacted at 800.905.0627, or by e-mail at 20