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1. Listen to Our Industry Experts at www.AutoSuccessPodcast.com
March 2009
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5. leadershipsolution StephenR.Covey
FOCUS
Translating Lofty Goals Into Action
In prior columns, respond to this question: “Which statements intimidating place was driving away tourism
I’ve talked about an are true about my organization’s direction?” and business. But how to translate that lofty
“execution gap” in organizations, the gap goal into action?
between setting a goal and achieving it. • My organization has a clear and
To close the execution gap, leaders must compelling purpose Instead of doing the same things others had
practice four disciplines of execution: • My organization has a clear strategic tried, the mayor’s team asked themselves
direction what they could do differently that would
1. Focus on the Wildly Important Goal • I clearly understand the reasons for the realize the goal quickly and with relatively
2. Create a Compelling Scoreboard strategic direction little effort.
3. Translate Lofty Goals into Action • Our organizational goals are clearly
4. Hold Everyone Accountable All of the connected to my organization’s mission One of the first and last impressions of
Time and strategy. New York for anyone visiting the city was
• I clearly understand what I am supposed the “squeegee operators” who haunted the
Once you have identified your “wildly to do to help achieve my organization’s tunnels and bridges of the city. They spit on
important goals” and posted the scoreboard goals. car windows and wiped them with dirty rags,
on those goals, you must translate them into then demanded payment for “cleaning the
action. Only 23 percent of the respondents agreed windows.” Because this activity is not illegal,
that all these statements were true for the city was helpless to stop it — until one
For most workers, organizational and team them. This means that more than three of the mayor’s counselors pointed out that
goals are somewhat lofty. It’s easy to lose fourths of U.S. workers are unclear about jaywalking is illegal. The mayor directed
sight of the higher or strategic purpose. A organizational mission and goals — and that the police cite the squeegee operators
clear goal and a scoreboard help a lot — but what they are individually supposed to do for jaywalking. The police soon found that
people must also get help in deciding what about them. The water is not getting to the the squeegee people were usually wanted
they are supposed to do about the goal. end of the row. for more serious violations. In no time, the
entrances to New York City were much more
Getting the Water to the The consequences? Firms fail to meet inviting. (Rudolph Giuliani, Leadership,
End of the Row market expectations, leaders face frustration New York: Hyperion, 2002, 41-42.)
I live in Utah, a beautiful but dry country in moving important initiatives forward and,
where farmers must irrigate their crops in many cases, things get completely out of To identify the new or better behaviors
because they cannot depend on rain. If you hand. needed to achieve key goals, meet with your
walk along a sprinkler line on a farm, you team and explore these questions:
might notice lush, green growth near the first Leadership is far more than the proclamation • Where in your organization or elsewhere
sprinkler head—the one nearest the valve— of a lofty goal. It is also ensuring that each are people consistently achieving their
but sparse and yellow growth toward the end person on the front line knows exactly what goals? What are the key behaviors these
of the line. Unless the farmer regulates the he or she must do to achieve the goal. superior performers consistently engage
water pressure in the pipes, there is little flow in?
left for the plants furthest from the source. New Goals Require New Behaviors • How could we adopt these behaviors
The answer to “what do I do about it?” is and make them general throughout the
The same is true in an organization. So many in identifying the new or better behaviors organization?
leaders proclaim lofty strategic goals from that will ensure execution of the goal. • Imagine — what might be the most
their headquarters offices only to find that The principle is this: Goals we have never impactful thing we could do to achieve
those goals are never implemented at the achieved before require that we do things we the key goal?
front line where the work really gets done. have never done before.
The water fails to get to the end of the row.
Stephen R. Covey, Ph.D., is co-founder of
Former Mayor Rudolph Giuliani of New FranklinCovey, and is the author of The 7
So how big a problem is this? In a recent York City once set a lofty goal of making Habits of Highly Effective People. He can
study, more than 12,000 U.S. workers in people feel safe in the Big Apple once again. be contacted at 866.892.6363, or by e-
hundreds of organizations were asked to New York’s reputation as a dangerous and mail at scovey@autosuccessonline.com.
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www.autosuccessonline.com
6. sales&trainingsolution TomHopkins
KEEP YOUR
BOAT AFLOAT
How do negative despair, depression and decline. income — but all those things count for
thought patterns affect nothing if you don’t have enthusiasm
your life? They give you the emotional You might be thinking, “Tom, I work all day and good feelings about it all. How many
droops. Your drooping emotions bring on with people who are negative. They sit at famous and wealthy people can you think of
a mental sag. Then your sagging mental desks all around me. I can’t get away from who’ve committed suicide when they lost
powers cause a downturn in your job them.” their enthusiasm for life? Don’t give your
performance. That downturn leads directly enthusiasm and good feelings away to any
to a sharp decline in your income. The Yes, you can. You can get away from them angry loser who passes by. Keep them. They
decline in your income gives you more in the only way that matters — mentally. are the most precious things you own.
negative thought patterns, and they add more If you’re surrounded by negativity, put a
spin to your downward spiral. positive shell around yourself. Let me tell If you want to help Joe and Jane Negative,
you about the positive shell I used when I set a positive example. Be enthusiastic and
We all go into declines. We all start sliding was in sales. I worked at it, of course — my successful. Laugh hard and work hard.
downhill now and then. Let me show positive shell didn’t grow all by itself. But Your example will radiate the message of
you how to arrest your slide, get yourself after a short time, that shell was so thick that positive-minded success to the lesser folk
turned around and start climbing again. negative people very rarely tried to break around you who are mired in moodiness and
These are the general things you should be through it. mediocrity.
continuously doing to keep from getting
exposed to depression. Whenever somebody new joined the staff, Keep pumping. Pessimism is bilge water,
I would greet them warmly and wish them and your life is like a ship. All ships leak a
Talk to positive people more. Always be on well. Then I’d say, “Now, I have enough little, but that’s no problem as long as the
the lookout for positive people. Actively problems to handle in my life already. If you crew keeps pumping the bilge water out.
seek them out. Encourage their friendship. have anything negative to say, don’t come
Positive people are gems. Treasure every near my desk.” That got it out in the open Your pumps are your self-instructions. If
one you meet. Find ways to spend more time right away. I wasn’t there to win the “Good your self-instructions are nothing more than
with them. Guy of the Year” Award. the mixed bag that you’ve picked up as you
go along, you’ll be pumping a lot of bilge
Talk to negative people less. You can’t do I stuck to my guns on this. Nobody was water in, not out. Some people pump so
this passively. You can’t just stand there and allowed to pull a chair up to my desk unless much negative stuff into their lives that their
let anyone who comes along monopolize they were qualified to make a purchase. ships sink.
your ears with a flood of negativity. When When anybody came over to kill some time,
someone is negative, you have to say to I’d reach in my drawer, take out a deposit Think about what you’re pumping into and
yourself, “I can’t help people like this until receipt, and say, “All right, let’s see which out of your life with your constant thoughts
they’re ready to be helped. In the meantime, one you want today.” that are negative or positive self-instructions
I’m not going to let them hurt me. So I’m according to your choice. If changes are
closing my ears to them — nicely if I can, Do not let these people slurp you. In this life, called for, make them now. There’ll never
roughly if that’s the only way I can do it. you’re either a slurpee or slurper. A slurper be a better time. Make those changes and
My contribution to the world is enormously is someone who steals your warm emotions, start cruising happily toward the rising sun
more important than hearing this pointless absconds with your enthusiasm, swindles of success.
negativity.” you out of your good feelings, and leaves
nothing behind except bad news. World-renowned master sales trainer Tom
At times, this means that you’ll be talking Hopkins is the chairman of Tom Hopkins
to nobody but yourself around the office. If All you can ever really have in life is your International. He can be contacted at
that’s the only way you can talk to someone enthusiasm and good feelings. Think about 866.347.6148, or by e-mail at
who’s up, so be it! Talking to yourself is that and I believe you’ll agree with me. thopkins@autosuccessonline.com.
always better than talking to a promoter of You can have honors, awards, property,
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www.autosuccessonline.com
7. featuresolution
percent, so we thought the time presented a real opportunity for us in Carsites that improved search optimization for us and that along with
the market. By maintaining a targeted focus and deciding that failure Todd’s efforts have really impressed me. I see us continuing to steadily
wasn’t an option for us, we could pick up that difference between grow that department. We have a goal that’s targeted around vehicle
what the industry was going to be down and what people were talking sales, and the BDC or the Internet department is there to support those
themselves into. vehicle sales. As long as we can continue to meet those numbers and
generate new opportunities, we’ll continue to add people to meet those
For the last half of 2008, we just refused to participate in the opportunities.
slowdown and we continued to improve our business. In 2009, it’s sort
of the same thing, only the stakes have been raised a little bit. Even Todd’s been an integral part of building this thing and making it
as positive as we wanted to be, the end of 2008 was hard for a lot of happen, and the daily discipline of actually seeing that the vision gets
people. We essentially doubled our new car business in December and
Even in This Economy Bill Dube Hyundai Attributes again in January. We weren’t necessarily able to maintain the same
implemented. My management style is to design the vision and then
find people to implement that vision. We have great people in our
level of profitability as in boom times, but we were certainly better Internet department, but without the support of Dealer Synergy, it
An Interview by
SusanGivens
More Than 72 Percent of Its Entire Dealership’s off than we would have been if we had participated in the 30 and 40 would be that much more difficult to measure, manage and maintain
percent declines people were recognizing. that department.
Business from Its Internet Sales Department... I credit a good deal of our success to Dealer Synergy. We got up I’ve got to credit our general sales manager, Said Bousbaa, with part
And NO Conventional Advertising and running with them last September and at that time less than 20
percent of our business came from the Internet. By December, 72
of that success, too. The Internet department’s job is to get people to
show up. Once they do, it’s really his job to make sure that we deliver
percent came from online sources. We also incorporated a customer on our promise. All those things that people were informed about our
AutoSuccess would like to congratulate Bill Dube Hyundai, located in Wilmington Massachusetts on their loyalty/rewards program using Visible Customer and that is showing
tremendous success. This modest single-point Hyundai dealership in New England is delivering over 72 dealership have to come true, or else we are what they fear the most.
great promise too. It’s his responsibility to ensure the customer experience is what we
percent of the dealership’s entire business from its Internet Sales department with virtually no conventional
advertising. AS: Was this the first time you tried to put a focus on said it would be. That’s a huge job and he does great.
Internet sales?
During normal times this achievement might not get much attention, but given the current state of the SD: No. We’d been down this road five times before, and in July, I AS: Where do you see this industry going in the next year,
economy, this is an outstanding achievement. Then when you recognize this is not a Toyota or Honda store got really tired of that. We’d been through two people in a really short or the next five years?
and it’s located in a tier-two market, the results become even more startling. As a matter of fact, this past period of time, and I knew I had to do something; I knew I was leaving SD: It’s clear that a lot of people are going to talk this industry down
ScottDube December (2008) Bill Dube Hyundai delivered more units out of their Internet department than they did the deals on the table. We started looking around and I talked to several for a long time, and I’m not sure who wins in that equation. The
previous December (2007) out of their entire dealership. different companies, and was most impressed with Dealer Synergy talking heads on TV and the politicians and some industry leaders
mainly because of their aggressive follow-up and their willingness to really seem to be putting a negative spin on the industry. I guess it
While our industry is seeing some difficult times, we believe it is important to show you that it isn’t really depends on how quickly the consumer regains confidence, both
engage in conversation about what they’d do right away to help us.
impossible to make progress in your sales growth. The results you achieve will depend a lot on your
expectations. Are you a “glass-is-half-full” or a “glass-is-half-empty” person? Why are some dealers still AS: How did their relationship with you evolve?
selling vehicles with a modest drop off and others taking major hits in their sales volume? SD: Dealer Synergy asked what my goals were and really talked to
me about what I was trying to accomplish, and then crafted a game
There are dealers buying up stores and expanding their dealer groups, and grabbing bargains from dealers
plan to get me there. They were able to rough out a budget with me
who see no future in auto retailing. This month we wanted to focus on a different kind of a dealership. A
and get me an idea of what it was going to cost and what I could
dealership that is proactive and willing to change traditional ways of thinking. Their perspective: “Failure is
expect from it. I also asked them to help with the staffing portion of
not an option.” It’s refreshing to see a dealership commit to a course of action, execute on a plan and see it
building our Internet Department. They provided assistance in writing
through to its success. Bill Dube Hyundai, a tier two product in a tier two market has literally defied all logic
the employment ad and in interviewing the candidates. They also
and reasoning and has outperformed many larger dealerships with more money and resources.
oversaw the hiring and orientation of the people who were going to
SeanV.Bradley work in our BDC.
Bill Dube Hyundai is another Dealer Synergy success story. Dealer Synergy, an award-winning training,
consulting and technology company has achieved international recognition for the profound effect they have
AS: Describe the process of creating your Internet
had on the automotive retailing community. They have taken dealership after dealership from just average or below-average results to a level of department.
tremendous success. Many of their dealer clients have been nationally recognized for their success in Automotive Internet Sales and Business SD: Essentially, we built a new department from the ground up. We
Development — more so than any other training company in the industry. had no employees for this department. From one point of view, it was
perfect. There were no preconceived ideas or bad habits to break. We
AutoSuccess recently had the opportunity to sit down with both Scott Dube, dealer principal of Bill Dube Hyundai and Sean V. Bradley, founder had five brand new people who were going to come in and do it the
and CEO of Dealer Synergy. We wanted to find out why and how they have achieved a high level of success in their fields. way we wanted to do it. I made a commitment from the beginning
AutoSuccess: Scott, tell us about your store and background. not to “Frankenstein” the process, that is take one piece of advice and
Scott Dube: My father, Bill Dube, bought a Toyota dealership in New Hampshire in 1975, and bought a Ford dealership in the same town in ignore another. I was making a pretty substantial commitment, and
1981. Then in 2004, we acquired this underperforming Hyundai franchise in Wilmington, Mass. The store had some reputation issues and we my initial goal was to hold (Dealer Synergy CEO) Sean V. Bradley
have jumped in with both feet to improve the store’s performance and image. accountable if it didn’t happen, and in order to do that, you have to do
what the guy says. I had spent enough time and enough due diligence
AS: What have you been doing to improve the dealership? to put my confidence in him and say “I’ll do what you say, and hire
SD: We really focus on customer satisfaction and retention of every customer. We don’t shoot for a home run on every deal but rather focus on people to do what you say.”
making a good profit and keeping the customer coming back again and again. I am very hands on and always in the dealership or easily available
to customers and staff. All our dealerships have family members running them, so there’s always a Dube available to talk to if an issue arises. We AS: And how did all that turn out?
put that extra special touch on all our deals. I have a good crew of people, but it takes a while to put that crew together and culturally bring them SD: I was very pleased. We had no way to know what
to your point of view. the Internet department was going to do, and
I’ve been very pleasantly surprised with
AS: How has the current slowdown in the industry affected your dealership? the effort Todd Cole, my Internet
SD: Actually, it’s been a real positive for us; our volume is up, between 60 to 80 percent over last year. director, has put in, and
the results he’s been
AS: That’s impressive! How did you accomplish that? able to generate.
SD: During the last quarter of 2008, everyone was talking themselves into a pretty deep hole. There was bad stuff going on, to be sure, but even We implemented a
the worst-case scenarios being portrayed in the media were only business being off by 20 to 25 percent. We knew some dealers were off 30 to 50 website from TK
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8. in the economy and in their own personal lives. Hyundai is offering their goals and the status of their current situation. Also we recognize
its Hyundai Assurance program, and that really helps build some that you need a holistic approach and that the Internet Department
confidence with prospective buyers when they know they can give does not operate as a separate company, but a department within the
back the vehicle if they lose their job. dealership and everything between departments must work smoothly. I
read an article recently that compared a dealership to an “eco-system”
Our industry is cyclical. We’re seeing some bad numbers now, but where things are interdependent. I think that is exactly what we have
my family’s been in the business a long time. My father can attest to in dealerships. If you bring in a consultant and they make changes just
the fact, and reminds us very often, that this isn’t as bad as it was in to the Internet department or BDC area and do not look at how they
the early 1980s, when we had sales that dipped like this and we had interact with other processes in the dealership, the likelihood of long-
interest rates in the 20 percent range. We’re not facing that kind of term success will be compromised. We provide a customized solution
problem right now. In five years, we’re very optimistic. It will have that insures the entire eco-system works in a healthy fashion.
turned around, and we will have gone through a process where we will
have reduced the amount of competition we have. There will be fewer AS: What other services differentiate you from your
dealers, and hopefully those of us who make it through this challenge competitors?
are going to come out stronger on the other side. When times return to SVB: Coming back to the eco-system analogy, one of the major
more a normal economy and lending environment, we will prosper. differentiators is our ongoing support. We are not backseat
cheerleaders who say, “Here it is; go do it.” Dealer Synergy provides
I’d like it to be over right away, but the reality is we probably needed ongoing support and mentoring to ensure they stay on track and focus
a little bit of an adjustment. It’s going to cause us to run a much more on results.
efficient operation, and the entire industry is going to have to clean it
up a little, and tighten up things, and it’s probably healthy to do that. We coach, monitor phone calls, perform auditing functions of services
Hopefully, it doesn’t have to be catastrophic for us to learn that lesson. and the Web site, provide analyst reports, make mystery shopper calls,
provide ongoing phone training and a host of other services. This helps
Interview with Sean V. Bradley to ensure that the dealership stays focused on the process and that the
AutoSuccess: Sean, we have spoken to Scott Dube and team is held accountable for following their routine every day. We
he has shared his experience about working with Dealer know of no other training organization that provides this complete
Synergy. His results aren’t unique are they? service for their dealer clients.
Sean V. Bradley: Over the last 10 years I have continually honed
my craft, and every year more and more dealers are benefiting AS: Are you able to get your message home to the
from the lessons I have learned. Dealer Synergy has achieved some managers during your in-store visits?
incredible results with dealers over the years, and some of the ones SVB: While we are able to make a major impact during our on-site
recognized for their achievement using our systems and procedures training we recognized early on that a more comprehensive solution
are Nelson Mazda in Oklahoma, Willis Honda in New Jersey, and was required. After studying all the options and channels available
Peruzzi Toyota in Pennsylvania. Every one of them was featured in a we developed our Internet Sales Director Immersion Program.
cover story in either AutoSuccess Magazine, Digital Dealer or Auto These are held regularly throughout the year near our Philadelphia
Dealer Monthly. location and incorporate a three- and/or five-day deep dive into the
inner workings of an Internet and BDC department. Todd Cole from
AS: How do you replicate these results at each Bill Dube Hyundai attended one of these events and he attributes
dealership? much of his knowledge and success to information he learned about
SVB: First off, we recognize that every dealership situation and during that week of training. What’s also very exciting about this
market is different so we complete a needs analysis to clearly identify course is the information from FranklinCovey. Dealer Synergy is
the only automotive training company certified by Franklin Covey
Management and Organization Solutions Group. This means we bring
all the dynamic principles of The 7 Habits of Highly Effective People
to the participants in our Immersion Training. That along with our
training information makes this incredibly valuable. General managers
attending have found it very rewarding.
AS: Any thoughts you want to share in closing?
SVB: We have proven again and again that our system works and
those dealers who commit to it really like the results. The key word
here is commitment. We have spoken to some dealers interested in
our program and we could tell by their comments they wanted a few
pieces, but weren’t committed to the entire eco-system program. We
chose to walk away from those opportunities because we knew they
would not succeed in the long term. Dealer Synergy likes to focus on
dealers who recognize that success is within reach if they are willing
to jump in with both feet and stay the course.
For more information about Dealer Synergy’s Immersion Training,
visit www.InternetSales20Group.com, or www.dealersynergy.com.
Sean V. Bradley is the founder and CEO of Dealer Synergy, a
nationally recognized training and consulting company in the
automotive industry. He can be contacted at 888.814.0409, or by
e-mail at sbradley@autosuccessonline.com.
clockwise from the left:
Sean V. Bradley, founder and CEO of Dealer Synergy;
Scott Dube, Dealer Principal and Todd Cole, Internet Director at Bill Dube Hyundai;
Sean V. Bradley and the Dealer Synergy team
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9. marketingsolution MattBaker
WHERE THERE’S URGENCY,
THERE ARE CUSTOMERS
Effective brand expiration dates will only result in a loss of those special offer promotions that were
advertising has an credibility and a lack of return. produced through careful and thoughtful
appropriate time and place. Unfortunately, planning.
given today’s economic conditions, this Making It Work for You
brand-boosting initiative may not result in While there is a lot to be gained from For instance, consider developing a direct
the drive of traffic that one might expect. urgency-driven advertising efforts, many mail campaign that includes both implied
often aren’t sure of exactly how to use this and direct urgency. While direct urgency
Today’s buyers aren’t just looking for a deal; theory to generate the highest return. Here gives the consumer a straight forward reason
they are looking for the deal of a lifetime. are a few different options to consider when to act, such as through noting a deadline
While advertising focused on brand building developing an urgency plan that works for for special savings, implied urgency uses
is important, it is not what will get buyers your dealership. creative verbiage to help suggest that acting
off their couch and into your dealership in now would be in the consumer’s best
today’s tough times. Why not? It all comes Utilizing Promotional Events: interest, without expressing it directly.
down to urgency, which is created through For many dealers, staffed events or
an immediate call to action, fear of loss and “SuperSales” can help to create an ongoing As Marketing Experiments came to find,
the deal of a lifetime. training program or provide a shot in the the combination of these two approaches in
arm during a good economy. Yet when times one special offer lead to an increase in sales
The Power of Urgency turn tough, these events often become an conversion rates by 508 percent.
People in general are excellent at the art integral part of a dealer’s business plan.
of procrastination. For many, the easiest As the dealership staff stops believing Additionally, consider steadily building upon
decision to make is no decision at all. The they can move markets, these promotional the urgency your copy creates by staggering
stresses brought on by a gloomy economy events become even more effective as they direct mail send dates to the same customers.
makes buyers feel increasingly paralyzed, “stir up the pot.” This opens the dealership This method will not only repeatedly remind
which contributes greatly to consumer employees’ eyes to develop effective ways those consumers why they should buy
procrastination. As Michael Fortin, to create their own market, even when and where they should buy from, it also
President and CEO of SuccessDoctor. everyone else doesn’t believe one exists. motivates these buyers to make the move out
com expressed in a recent blog post, the of the house and onto your showroom floor,
key isn’t in pressuring people to make the These staffed events sales offer an excellent before it’s too late.
purchase. Instead, it’s using pressure to opportunity to create genuine consumer
give your consumers a compelling reason urgency with an effective time-sensitive In The End…
to stop procrastinating. By supplying your offer. Whether your staffed event ad plan No, unfortunately not every prospect will
customers with a logical reason for why includes direct mail, newspaper, TV, radio choose to buy from you now. However,
they should buy now, you are replacing their or all four, promotional sales offer a unique by capitalizing on the power of urgency
purchasing objections with a need to act on opportunity to communicate a logical reason advertising, you are putting your dealership
your proposed offer. why consumers in your market should buy at better odds to see that influx of traffic.
now and most importantly, why they should
So just how successful can this approach buy from you. Remember that creating effective urgency is
be? Marketing Experiments Journal took it not a one-step process. Instead, it’s a series
upon itself to test the effects of urgency on Direct Mail: of well-planned steps from a number of
sales conversion rates. By offering special Whether you handle your own direct mail angles. Your goal is to give your consumers
event savings for consumers who purchased campaigns or rely on a marketing agency a compelling reason to stop procrastinating
between the dates of May 8 through June to help you get your message across, make and make the purchase. Provide your
15, 2006 Marketing Experiments noted a sure your approach is geared towards driving customers with a logical reason why they
992.68 percent average increase in sales over home that much-needed urgency factor. should buy now and chances are that more
the course of the offer period. Long story will do as you say.
short – limited time offers create urgency As the Marketing Experiments study went
and urgency drives sales. However, as the on to show, simply adding an “offer expires Matt Baker is the vice president of sales
Marketing Experiments study is quick to on this date” starburst to your advertising for G&A Marketing. He can be contacted
at 866.618.8248, or by e-mail at
point out, the urgency you create must be may seem like the easiest way to increase mbaker@autosuccessonline.com.
genuine in order to be effective. Promotional your sales return. However as they came
gimmicks like continuously extending offer to discover, better results were received by
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www.autosuccessonline.com
10. marketingsolution SteveBrazill ScottWeitzman
marketingsolution
CASH
Successful dealership years and the boom years — the ability next month. A dealership that runs out of
TACTICS THAT WILL
MAKE YOUR WEB
SITE ‘SING,’ PART 2
Thanks to the Internet, Then focus on Search Engine Optimization
managers are, by to maximize profit is a “money” skill set. cash is out of business. Game over. today’s car buyers (SEO) and Search Engine Marketing
nature, profit-focused. We learn, generally But when business gets ugly, the ability to shop in an environment that serves up instant (SEM). SEO and SEM are the sciences
through experience, how to mix customers, manage cash can become more important Let’s examine a couple myths about cash: information gratification alongside a healthy of generating traffic in both free and paid
products and people in the right combination than the ability to manage profit. dose of online distractions. This issue, we’ll ways, through user searches at Google,
to maximize profit. We hone those skills “I can sell my way out of a cash problem.” look at some other ways that you can make Yahoo and other major search engines. Your
month after month. Through most of the A dealership that fails to earn a profit in a — Generally not. To understand why not, your Web site “sing” to your customers and Web development company may already
business cycle — certainly the normal month often gets a chance to try again in the think of the process of starting a dealership. stand out from the crowd. offer SEO and SEM services. If not, solicit
Before I can sell anything, I invest cash, then the help of an outside organization or
convert that cash to inventories. As I sell Stand Apart From the Crowd specialist, or research information online
those inventories I get some cash back but Guess what? Your competitors have Web and do it yourself. SEO and SEM are critical
I also create receivables (customer, rebates, sites, too. And with the increasing use of components to driving traffic to your Web
warranty claims) and new inventories (trade- templates in Web development today, there’s site, so take the time and do it right.
ins). Those receivables and inventories will a good chance they may have a site that
(should) eventually convert back to cash as I looks very similar to yours. Let the Leads Come to You
complete the sales cycle and, if my sales are Don’t fall into the trap of driving every
stable, I eventually recapture my initial cash So how do you stand apart from the visitor to your lead generation page. While
plus my gross profit (and less my expenses). crowd? If you have the resources, invest this tactic might work for third-party lead
But growing my sales rate means growing in a premium Web site template versus a generation companies that monetize each
my investment in the non-cash part of the standard version from your developer. High- customer inquiry, it’s not the best way to
cycle. More inventory. More receivables. end premium Web sites communicate to generate quality prospects at your Web
Growing my sales rate does not produce cash your customers that you take your business site. Allow visitors to browse and research
— it eats cash. Slowing my sales rate allows seriously. They also convey a higher level without overwhelming them with annoying
me to unwind my investment in inventory of presentation quality by putting the pop-ups for quote submissions and coupons.
and receivables, recapture cash and keep it in dealership on equal footing Instead, create pages of
the bank. with manufacturer and your Web site that follow
automotive portal sites, to a natural “research to
“I can’t make money if I don’t make a which online car buyers are purchase” pathway by
profit.” — Not necessarily. Operating profit already accustomed. providing lead generation
is the difference between gross profit and forms at reasonable stages
expense. If my total gross profit last month Check out the latest throughout the research
was $190,000 and my total expenses were automotive Web site content process, or at the end
$200,000, my accountant will record that being offered, and don’t of the research process.
I lost $10,000. But my expenses likely be afraid to incorporate When leads come to you
include some depreciation, which is a this content into your site. in a natural way, you gain
non-cash expense. The assets I depreciate For example, a new video your customer’s trust in
today were generally purchased and paid product that showcases the process.
for in the past — I don’t write a check to the sexy aspects of a car’s
pay for this month’s depreciation. If my styling, down to the trim The Internet provides
total depreciation (and amortization) in this level, can be used to create a great opportunity for
example was $25,000, the remaining cash a “mini-commercial” at the OEMs, lead-generators,
expenses of $175,000 would have been home page of your Web and dealers to leverage
covered by the $190,000 gross profit. Some site, for maximum impact content to drive success.
managers use this analysis to get a rough at minimal expense. There’s When you keep your
assessment of cash flow and you can see it’s plenty of cutting-edge, off- Web site simple, focus
possible for that measure of cash flow to be the-shelf content available on content that captures
positive even when profit is negative. on the market today that can attention, distance
leave your competition in yourself from the
Running a dealership is challenging under the digital dust. competition, strategically
any circumstances, but it becomes more market your site as often
so when a depleted checkbook is forcing Be Marketing-Minded as you can, and take a
your decisions. Managing for cash can be Having an organized more natural approach to
every bit as important as managing for profit content-rich Web site that lead generation, your Web site will “sing”
— sometimes more so. looks great is one matter, driving traffic to while your customers sing your praises.
that site is something else.
For starters, promote your Web site every
Steve Brazill is the chair of automotive Scott Weitzman is vice president of
chance you get — in traditional advertising, business development for eVox Images.
marketing for Northwood University,
Texas Campus. He can be contacted at by word of mouth, on signage and in He can be contacted at
866.861.1515, or by e-mail at collateral materials such as letterhead and 866.618.9004, or by e-mail at
1 sbrazill@autosuccessonline.com. business cards. sweitzman@autosuccessonline.com. 1
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