The Only Online Magazine in the Industry www.AutoSuccess.biz                                                              ...
• BZ Results                                                           • J&L MarketingA record breaking number of Dealers ...
TOP 10 BEST OF THE BEST    P                BE   NADA 200   N    ADA 2005   E          W                     O           R...
The NIADA.TV Television Network has responded to popular demand                and is now featuring LIVE PROGRAMS and LIVE...
EXPOSED Auto Dealer Speaks Out and Reveals the Raw Truth about That “Consultant –Trainer,” Mark Tewart,                   ...
10            Superior Customer Service is              the Foundation of Good Business                                   ...
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Ever wonder                              where your support                              goes after your bank             ...
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TOP 10                                                           BEST OF THE BEST                                         ...
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TOP 10BEST OF THE BEST   NADA    2005
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MEET YOUR NEW E-PLOYEE...WORKS 24/7 WITHOUT A SICK DAY OR VACATION!TIMEHIGHWAY.COM replaces telephone-based scheduling wit...
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TOP 10BEST OF THE BEST   NADA    2005
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March 2005 AutoSuccess

  1. 1. The Only Online Magazine in the Industry www.AutoSuccess.biz .biz S CEMarch 2005 TI AC PR 22 756 South 1st Street PRSRT STD Suite 202 ge US POSTAGE Louisville, KY 40202 pa PAID LOUISVILLE KY PERMIT NO 879 rt N R 5 so s, l & 00 V e ga ote h, 2 Ve H t s n 20 La etia h & n 9t Ve 1 e ay Th M Sa division of Systems Marketing, Inc. www.autosuccess.biz
  2. 2. • BZ Results • J&L MarketingA record breaking number of Dealers stepped up to the BZ booth for a “Free J&L Marketing’s booth at NADA 2005 in New Orleans was overßowing withVirtual Test Drive” and a quick demo of the system that is helping dealers dealers making the decision that the J&L Growth Strategy was the rightsell 80 to 700 additional units each month. Many dealers left the booth with a marketing direction for their dealership. By investing just a few minutes offree eCRM business plan and tickets to the Superbowl. Others came to the their time, dealers across the country were introduced to a Growth Strategybooth asking why 8 of the Top 10 eDealers for 2005 use BZ Results and what that increased their customer base, increased the average dollar amountthe secret to their success is. Dealers were excited to learn more about the each customer spends, and increased the frequency that their customerstechnology and training that is helping dealers like UAG, Herb Chambers, bought from them. The big difference between what everyone else is selling,Red McCombs, Sheehy, Courtesy Chevrolet, Paragon and Tasca Þnd more and what J&L Marketing was offering is that the Growth Strategy is not just aquality trafÞc, sell more cars and keep a higher percentage of their customers one time sales promotion. It is an ongoing advertising approach that includesloyal to sales and service. The BZ Results team answered questions about weekly advertising strategies as well as high impact sales promotions. Thethe new ad tracking tool and virtual phone manager to show how these tools secret is how they work together, taking advantage of marketing leverage.can be incorporated into a dealer’s current advertising strategy to increase They offered case studies of Johnson City Honda, a dealership that followedtrafÞc and lower cost per sale. When asked what’s most important to them, the Growth Strategy precisely, and showed how, in the dealership’s Þrst fourmany dealers talked about Þnding an alternative to the increasing costs and months of following the strategy alone, they increased sales by 85 units perdecreasing returns of traditional advertising mediums. These dealers are month (that is a 75% increase), and increased the gross average by $1,300signing with BZ Results to not only sell more cars, but also to lower costs per unit sold. It is this highly strategic planning and incredible results that hasand bolster the return on their advertising investment. After all, with less than set J&L Marketing apart for 14 years.30% of today’s shoppers referring to traditional advertising mediums (TV,radio, outdoor and print) and almost 80% preferring to use the Internet to dotheir automotive research, it’s just good sense to make the move to digitalmarketing and start Þshing where the Þsh are. • Dealix • AutobaseAt NADA this year, some of the most popular workshops focused on helping Vendors to the automobile industry had tremendous success at this years’dealers hone their Internet sales skills. Two in particular, “Increasing Your NADA convention. Autobase, Inc. was one such company. AttributingPre-Owned ProÞts,” presented by Kevin Root of The Cobalt Group, Inc., and their success to a strong team with a strong product suite, the Autobase“The Roadmap to Internet Sales and ProÞts,” presented by David Kain of Kain representatives not only exceeded their goals, but also surpassed previousAutomotive and Dean Evans of Dealix Corporation, drew standing room only show sales signiÞcantly. Autobase, Inc. left New Orleans extremely pleasedcrowds, even on Monday, a traditionally slower day for NADA workshops. “The with the rollout of Autobase Sales Center 6.0, their award winning CRMpopularity of these workshops underscores the fact that dealers are no longer application. Additionally, they were very pleased with the phenomenalwondering if they should tap into the Internet sales channel, but how they response to their new offering for business development centers, thecan do it better,” said David Kain. Both workshops offered tactical strategies Autobase Loyalty Center. Beyond these, Autobase once again featured theirfor everything from marketing speciÞc vehicles online better, including taking CRM Enhancements, which allow a dealer to tailor-Þt the CRM applicationproper photographs; to scheduling email campaigns and types of templates to his unique and speciÞc needs. As in past years, CRM once again was ato use; to measuring lead provider, Web site, and ISM performance. Adding to special focus for auto dealers at the NADA convention. Autobase, Inc. claimsthe tactical advice from Root, Kain, and Evans (all of whom are auto industry that CRM is a critical component in the successful operation of any business,veterans in their own right), were lively post-presentation discussions with particularly an automotive dealership. As customer expectations for servicesdealers in the audience, who shared war stories on how they’ve used the and quality continue to increase, it is critical for a dealership to monitor andInternet to boost sales and proÞts. Attendees ranged from dealers who have manage expectations while looking for additional revenue opportunities.been selling cars via the Internet since 1995 (the birth of the automotive Among a growing competition, Autobase, Inc. continues to achieve recordInternet) to dealers who were still testing the waters before scaling back on breaking sales because of their simple strategy, employed since the companytheir newspaper budgets. began in 1988: to produce feature-rich, purpose-driven solutions that are built on the fundamentals of the industry’s time-tested selling process. • ProResponse • American Auto ExchangeNADA 2005 was the most eventful show for ProResponse since they began The NADA Conference in New Orleans, LA was a huge success for Þrstattending in 1998. In addition to seriously interested Þrst time visitors, they time exhibitor American Auto Exchange, Inc. (aaXchangeTM). aaXchangeTM,were humbled by the amount of dealers and managers coming by that were a three year old company, has evolved this year to offer many new productsescorted by current ProResponse clients. ProResponse has always prided to dealers. The response received from many dealers attending NADA wasitself in delivering what the dealer wants, not what the vendor thinks they exciting and positive. aaXchangeTM gave presentations on their signaturewant. Their dedication to customer service seems to have netted them a lot Vehicle Management System (VMS) to dealers representing over 1200of referrals showing up at their booth. Interest ranged from ProResponse’s dealerships, while introducing the latest applications of abX, DealerBasics,sales and service CRM solutions to their sister company, InTouch Marketing’s New Car Modeling and the newly announced SmartLaunchTM, integratedPrecision programs which uses data mining to determine speciÞc customers intelligence based on eBay market data. “We are pleased with the responseand prospects and then market to them using the latest in variable data print Dealers directed to all of our new products, especially our signature VMSand e-mail campaigns. They have strategic alliances with Who’s Calling, Call System. aaXchangeTM is introducing new and exciting applications, whichSource, Call Bright, Call Command and others. This cooperation results in will help dealers revolutionize the way they operate their business”, saidincreased sales and decreased advertising costs because every phone and Bruce Thompson, Chief Executive OfÞcer of American Auto Exchange, Inc.ßoor opportunity is addressed every day. The show proved to be an excellent “It was thrilling to watch our company’s projected sales goal surpassed duringopportunity for ProResponse to strengthen already existing relationships with NADA”. American Auto Exchange, Inc., headquartered in Dallas, TX, providesChrysler’s 5 Star Team and General Motors. GM will rollout their new CRM technology solutions for new and used vehicle inventory management.(Dealer World) which will interact with ProResponse’s systems to provide aaXchangeTM was founded by industry veterans, knowledgeable about everymarketing opportunities and information sharing to GM Dealers. Many visitors aspect of the day-to-day operation of a dealership. Technology-based andwere interested in ProResponse’s Spanish Services. They are the only innovation-driven, aaXchangeTM is distinguished for its customer-focusedCRM tool that can provide consistent follow-up and target marketing to the approach. With over 1,500 franchise dealerships in the used vehicle space,Hispanic market. Canadian Dealers were surprised to Þnd that their services aaXchangeTM continues to lead the inventory management space withare available in French also. ProResponse has continued to grow each year innovative features. aaXchangeTM is earning their reputation, one dealer at aand this NADA Show has 2005 looking like the best year ever. time and is building a rapidly growing customer base throughout the nation.
  3. 3. TOP 10 BEST OF THE BEST P BE NADA 200 N ADA 2005 E W O R L E A N S • TimeHighway.com • The Joe Verde GroupTrafÞc at the TimeHighway.com booth was brisk and interest in this on-line Wow, what another great convention. Lots of people, lots of excitement andservice scheduling solution was high. Many dealers indicated their current lots of potential uncovered in the workshops, especially those presented bysolution – a “request for appointment” - was ineffective, as the customer the Joe Verde Group. Joe Verde and one of his trainers, Sean Gardner, heldstill didn’t have a conÞrmed appointment until someone at the dealership a total of eight action packed workshops again this year. Joe is known as theresponded to them either via email or telephone. They were interested in guru of Sales and Sales Management and has spoken at the Conventionthe fact that TimeHighway.com drives trafÞc to their Web site and reduces almost every year since 1990. As usual, Joe was talking about the potentialin-bound telephone calls. Dealers also seem to be recognizing that taking this business really offers anyone serious about growing each year. Histelephone calls for service appointments is not the most effective use of their workshop focused on whether a dealership is Market Driven or Managementservice advisors’ time. They were very interested in the fact that not only does Driven and on the tremendous difference in returns in sales and proÞts. AndTimeHighway.com allow their customers to visit their Web site and make a most important, he reminded everyone they aren’t really competing with theconÞrmed service appointment, but it also “load balances” their service bays other dealerships in their community ... only with the Management Skillsand increases their service department efÞciency and revenue. Because of the and direction at the other dealerships in town. Joe keeps everything simpleability to load their services, service duration and service depth, it simpliÞes and logical ... that plus his enthusiasm and the fact that he’s grown his ownthe appointment process to the point that anyone at the dealership can take business for 20 years straight, makes everyone realize the true potential theythe incoming call and book the service appointment for the customer. Also of have in their own lives and in their dealerships. Sean’s class was one ofinterest was the fact that the customer automatically receives a conÞrmation the most inspiring classes that connected directly with what Joe was talkingemail, a courtesy reminder email and a completion CSI email. This relieves about, too. His focus was on Listening ... to customers, to your employeessomeone at the dealership from having to make these telephone calls. and especially in the selling process to cause more of those sales to happen in your dealership. These two trainers are deÞnitely at the top of this game and if you missed either of their programs, you can order their video tapes directly from NADA by calling 800.241.7785.• Ultimate Warranty Corp. • The WolÞngton GroupThe Ultimate Warranty team kicked off the show by unveiling a brand new The WolÞngton Group took a different turn this year at the NADA show. Insteadexhibit and a brand new look. Covering 900 square feet of space and towering of having the same old marketing booth, they decided to have a hospitality16 feet over the convention ßoor, the exhibit made a dramatic statement about area where their current clients and business partners could come and relax.the company and its success. The company showed dealers one road to Being a relatively small Þrm with just over 100 employees headquartered inproÞtability, compliance, and customer satisfaction in F&I. Not an easy task Augusta, Maine, they experienced incredible growth in the calendar year ofby any means, but Ultimate Warranty is proving through its clients that is has 2004. This growth has been fueled by the support and accolades they havea solution. Adding to its already productive presence at the show, Ultimate received from their present dealers, as well as referrals from 20 groups. WithWarranty Corp. announced their new strategic technology partnership with limited dates available even for existing dealers, the decision was made toNAT, Inc. Among other projects in the works, Ultimate Warranty incorporated provide a “hospitality” booth as opposed to a “marketing” booth this year. As itthe NAT “best of breed” menu selling application into its product portfolio. With turns out, the decision was a wise and valuable one. The business had grownfeatures like automated vehicle qualiÞcation and rating, forward/backward and expanded so quickly in 2004 that they had not had the opportunity toDMS integration, and guidelines for regulatory compliance, the system is really get to know many of their new dealers across the country. New Orleansunsurpassed. Demonstrating the power of this new menu selling application, provided the venue to meet face to face with the Dealer Principles who haveUltimate Warranty received some great feedback. Dealers were impressed with been so instrumental in the growth of The WolÞngton Group. Sometimes, inthe level of functionality and resources supporting the menu system. The system this full throttle environment it is easily forgotten how important it is to sayproved to be the most powerful menu software on the show ßoor. Dealers were “Thanks for another great year!” NADA New Orleans provided just what thefurther enticed when they learned that Ultimate Warranty would provide this doctor ordered. Harry WolÞngton, President, summed up his approval withuseful technology to each of its clients at no extra cost. Ultimate Warranty New Orleans “The WolÞngton Group anticipates another pleasant surpriseshowed the world that it is building a new breed of service contract providers. in Orlando.”By leveraging strategic partners and utilizing competitive advantages, UltimateWarranty is redeÞning what it means to service a client. Ultimate appears tohave its goal of being a total solution provider well at hand.
  4. 4. The NIADA.TV Television Network has responded to popular demand and is now featuring LIVE PROGRAMS and LIVE SPECIAL EVENTS!• Over the next several months, you won’t want to miss any of these great programs, so mark your calendars and stay tuned to NIADA.TV.• Live programs and Live Special Events will also be rebroadcast several times before becoming regular programs on the Education Channel or placed on the Member Channel.• Live events are free to members, subscribers, and to anyone within the industry who logs onto the network at www.niada.tv during live broadcast times.WEDNESDAY, MARCH 9TH 2-4 pm Eastern Standard Time (EST)“The F&I Department: Products, Practices, Paperwork” NIADA General Counsel Keith Whann shows you some common F&I Department mistakes that could cost you a bundle, or worse,land you in court. Taped before a live audience in Kansas City, this seminar will give you helpful tips and one of a kind insight into howto avoid some of the biggest mistakes in the F&I Department.Rebroadcast on March 15th and 19th beginning at 9am Eastern Standard Time (EST) for 24 hoursTHURSDAY, APRIL 21ST 2-4 pm Eastern Standard Time (EST)“Legal and Regulatory Issues Facing Dealers Today” An open forum broadcast before a live studio audience of dealers in Columbus, Ohio. Hosted by Keith Whann and facilitated byMichael York, NIADA.TV’s Chief News Correspondent, this program will focus on various legal and regulatory topics and issues facing theautomobile industry. Tune in to hear Whann’s analysis and answers to some of the biggest legal questions facing automobile dealers today!Rebroadcast on April 23rd and 26th beginning at 9am Eastern Standard Time (EST) for 24 hoursWEDNESDAY, JUNE 8TH 1-4 pm Eastern Daylight Time (EDT)“2005 NIADA Convention General Session” If you are unable to attend the Convention, this is your chance to see the opening session of NIADA’s 59th Annual Convention andExpo, broadcast live from the Westin Peachtree Plaza Hotel in Atlanta, Georgia. The event begins with an association update given byExecutive Vice President/CEO, Michael Linn, to be followed by a Keynote Address from Michael York entitled “Becoming Uncommon inToday’s Economy.” The session wraps up with the NIADA Legal, Legislative and Regulatory (LLR) Open Forum hosted by Keith Whann,General Counsel, along with LLR Committee Members.FRIDAY, JUNE 10TH 8-10 pm Eastern Daylight Time (EDT)“NIADA 2005 National Quality Dealer of the Year Awards” Here’s a chance for a front row seat to the 2005 NIADA National Quality Dealer of the Year Awards, broadcast live from thefabulous Peachtree Ballroom at the Westin Peachtree Plaza Hotel in Atlanta, Georgia. This great event will honor past award recipients,highlight this year’s nominees from around the country and present the 2005 National Quality Dealer of the Year. This is one night youwill not want to miss!
  5. 5. EXPOSED Auto Dealer Speaks Out and Reveals the Raw Truth about That “Consultant –Trainer,” Mark Tewart, Who advertises in this Magazine All the Time. This guy, Mark Tewart promises all sort of things to us car dealers – sales and management strategies for our dealerships that he “promises”really pay off. Such as strategies that will increase sales without increasing your advertising. Ways to increase gross proÞt by $200 a car minimum. Howto reduce and eliminate water in used cars and so on. Every time I read one of his ads, I thought, “Who could be dumb enough to fall for this guy’s rap?”Now, I’m going to tell you the raw truth about this guy and his ‘success secrets.’ My name is Chad Hawkes; I live in Oklahoma with my wife and child. I went to college here and became a salesperson at a car dealership. Iwas a struggling salesperson with little direction and not much of a future if my results stayed the same. I didn’t know what I was doing and was frustratedeveryday with the business. I needed a change and I needed it quick. One day our dealer hired a consultant and trainer named Mark Tewart who ran all these ads with these big claims. However, our dealer toldus he had known this Mark Tewart guy for several years going back to when he was a new manager at another dealership. Our dealer told us to hang onto our hats because this guy Tewart was a Þreball with more real valid information on success in the car business than anyone he had ever seen and thathe wouldn’t have become a dealer before he was 30 years old without Mark Tewart. Most of what he taught us was so different from what we had ever seen, heard or been taught by other so-called experts. As we listened toMark’s information, we saw a whole different way to develop a high income career rather than just make a sale here and there. We heard sales skills,people skills and life skills and found freedom from the cheapest price, roll around in the mud, bait-n-switch ugliness. Best of all we learned actual skillsto reengineer our business (managers and dealer as well as salespeople). I even looked in the mirror and saw Chad Hawkes differently. So, skeptical andgrateful at the same time, we left the workshop with a workbook and CD’s full of ideas. The next day I began to implement 10 different Mark Tewart strategies. Over the next couple of weeks, as I got them up and running, they allsurpassed my greatest expectations. Let me give you an idea of what I am talking about. My Þrst year of implementing Mark’s strategies, I became thenumber one salesperson and my production tripled. I began to get my life in order as well. Every time Mark came to the dealership he taught me lessonsthat made my whole life change for the better. After a period of big increases, I was promoted to manager and attended Mark’s Management workshops.Once again, I was amazed at how much incredible information I got and how much it improved our dealerships sales and proÞts. Our little countrydealership, located in an economically challenged area had improved from 40 units a month to over 325 units and we had become on many months thelargest dealer of our brand in the state! Personally, I went from struggling to winning. I became the General Sales Manager and then bought my own dealership and now own twodealerships before turning 30 years old. How, you ask, could such a thing happen? The answer, simply, is learning how real proven and effective salesand management systems work, from the “master”, Mark Tewart. In spite of everything you hear about business being slower and tougher, my businessis booming. Just a couple of Mark’s strategies alone has allowed me to go from 40 used cars a month to over 120 a month operating out of a trailer!Thanks to Mark’s ideas, systems, inspiration and encouragement I have two dealerships and have bought the ranch of my dreams for my family. What is important is that Chad Hawkes can sell a ton of vehicles, get plenty of referrals, is unaffected by competition and has ‘real’ systemsin place to realize a huge proÞt every month. I knew Mark had it Þgured out when after one consulting session he showed me over 40 ways to grow mybusiness and make more proÞt. He is brilliant. So here’s the raw truth about this Mark Tewart guy: Unlike most of the ‘pretend’ experts, he is a bona Þdetrainer-consultant and money making genius, who can do anything from tweaking to transforming your business, so you not only make a lot of money,but you can make it a lot easier and more enjoyable than you can imagine.Maybe you are already doing well already – but you could do better (some of Mark’s most ardent students make many millions per year). Maybe youjust don’t want to be sold something that’ll be a waste of your hard-earned money. About that you can relax. Mark guarantees his stuff. I’ve got over $1,000,000 reasons why you ought to investigate what Mark has to offer. What reasons do you have NOT to look at this?And here’s how easy it is: Mark has prepared a straight-talk, detailed report – “HOW TO RECRUIT, HIRE AND TRAIN A DREAM TEAM OFSALESPEOPLE,” which you can have absolutely FREE of cost or obligation. Get it, read it and decide for yourself whether or not you want to get in onMark’s information. It’s that simple. To get your FREE Special Report go to www.tewart.com/specialreport or call our 24 hr. hotline at 1.866.432.2468.You will hear a brief, free recorded message and be able to leave your name and address, so your report can be mailed to you. Or write “report” on yourbusiness card or letter head and pop it in the fax machine or email it. Mark’s fax number is 513.934.4588 and his email address is info@tewart.com -Either way, you will get his eye opening report rushed to you, free. By the way, I wasn’t paid a penny to write this about Mark. I am a car dealer just like you. I did this just as a way of saying thanks to Mark foreverything he’s done for me. And I am not the only person who feels this way. With your report, you’ll get a book of actual comments from some of theover 10,000+ other salespeople, managers and dealers he has helped. Most like me are now making more money, with less hassle than ever before. Morebusiness that we handle ßows in everyday… proÞtably. All we can say is this, “don’t envy us. Join us”.Chad Hawkes, Hawkes Motors, Pryor, OK.P.S. Please don’t get my number and call me. The last thing I need is a zillion phone calls asking me about Mark. I’ve said what I have to say righthere. What else could you possibly need to know? Instead, call 1.866.432.2468 and ask for your FREE SPECIAL REPORT today. You owe it to yourbusiness. visit www.tewart.com/specialreport for a Free Special Report or call 888 2 TEWART 283.9278
  6. 6. 10 Superior Customer Service is the Foundation of Good Business Megan Moriarty12 Telling is Not Selling Zig Ziglar14 Four Keys to Integrity Selling, Part 2 Sean WolÞngton16 The Key to Success: Follow Up Your Sold Customers Chris Hanson18 Building Your Brand Jim Adams19 How to Identify and Sell to the Technician Personality Carol Martin20 Service Contracts Offer More Value to Our Customers Today Then Ever Before Tony Dupaquier24 The Next Generation of Direct Mail Tony Cantrell26 How to Lower Your Taxes Brett H. Holst28 I Enjoy Flying Almost as Much as I Enjoy Selling Cars Drew Steketee29 The Personal Touch Kirk Manzo30 Amazing Free Information, Only $14.95 Michael York31 The Power of Action Mark Tewart32 The Value of Follow Up: Why Aren’t Manufacturers Helping More With Customer Retention Joe Verde34 Increase Sales, Customer Satisfaction and Loyalty in the Service Department Karen Dillon36 Big Box Retailer and the Automotive Industry Bruce Thompson38 If You Want Real Growth Start With the Simple Fundamentals, Part 2 Scott Joseph40 Internet Department Generates Extra Sales While Elevating Skills, Morale & Professionalism of Entire Sales Team Bryan Hopkins42 Relevance and Timing David Kain43 Applied Window Film Can Lower Temperatures and Reduce Air Conditioning Cost in Your Show Room Marty Watts44 The Demo is Not an Option Anthony Hall Choose Freedom • Support Our Troops Psalms 7:17 I will give thanks to the LORD because of his righteousness and will sing praise to the name of756 South 1st Street, Suite 202 Louisville, Kentucky 40202 the LORD Most High. ! Toll Free: 877.818.6620 " Facsimile: 502.588.3170Patrick Luck, Editor & Publisher Courtney Hill• pluck01@autosuccess.biz Sales-improvement Strategist • chill04@autosuccess.bizSusan Goodman, Vice President• sgoodman02@autosuccess.biz Thomas Williams, Creative Director • twilliams03@autosuccess.biz Success Driven SolutionsAutoSuccess Magazine is published monthly at 756 South First Street, Suite 202, Louisville, Kentucky, 40202; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 orinfo@autosuccess.biz. 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.AutoSuccessprovides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccessmay occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA.Postmaster: Send address changes to AutoSuccess Magazine, 756 South First Street, Suite 202, Louisville, Kentucky 40202.
  7. 7. sts ms ls fis sf MeganMoriarty special feature Superior Customer Service is the Foundation of Good Business Wilson County Wilson County Automotive garnered the involved in community activities that build a Automotive of attention of the Society of Financial Service better place to work and live.” Lebanon, Tenn., Professionals with its business conduct, received the 2004 which was recognized as resting on the Bone believes it is the work and attitude American Business six pillars of character: trustworthiness, of his partners and employees that allows Ethics Award respect, responsibility, fairness, caring and everyone at Wilson County Automotive tosponsored by the Society of Financial citizenship. be able to hold their heads high and lookService Professionals. their customers and friends in the eye. “Wilson County Automotive was founded “More than one employee has told me thatThe ABEA, established in 1994, is a by people who believed in a business that they came to work for us – and stayed withrecognition program for companies with offered good products at a fair price,” Bone us – because there was a history of the ‘olda strong, demonstrated commitment to said of the company co-founded in 1927 by timers’ and a legacy of integrity,” Bone said.ethics. It recognizes U.S. companies his father. “They believed in being active in “All of us at Wilson County Automotive arethat exemplify high standards of ethical the community and that their customers were standing on the shoulders of great giants,behavior in everyday business conduct. their friends. Their business was built upon and I thank my partners and employees forAwards are presented in three categories: the foundation of being fair and ethical, and continuing to support the fundamentals oflarge companies (more than 2,500 nothing was more important to them than our founders.”employees), midsize companies (250-2,500 their reputation.”employees) and small companies (less than Rick Bell, president of the Society of250 employees). The automotive group was Bone said the company continues to build on Financial Service Professionals, said thethe recipient of the small company category the work his father and his father’s partners society has promoted ethical businessand was selected from a field of 20 finalists - all of whom survived the depression, wars practices among its members throughoutfrom throughout the nation. and fires - created. history. “The list of … ABAE recipients … reads like a ‘who’s who’ of corporate America,” Bell said. “Each of these companies was chosen because they represent what is right about American business.” An expert panel drawn from business, academia, public service, media, consulting and ethics communities selected this year’s recipients. Past recipients include Hewlett-Packard Company, Bell Atlantic Corporation, Starbucks Coffee Company and Texas Instruments Inc. The Society of Financial Service Professionals, founded in 1928, is the standard-bearer of excellence in professionalism, advanced continuing education and ethical guidance for the top financial advisers in the nation. It is made up Randy Jackson, Rick Tomlinson, Wayne Fielder, Kathleen Crumby and W.P. Bone of about 22,000 members.“We believe superior customer service “They were the ones who established the Wilson County Automotive is a collectionis the foundation of good business,” said strong fundamentals of Wilson County of companies selling Chevrolet, Pontiac,W.P. Bone, owner of Wilson County Automotive and the group acknowledges Buick, GMC, Chrysler and Jeep.Automotive. “Our company’s code of ethics their debt to the men,” Bone said. “Whileis communicated to each new employee our business and our community have grownand reinforced daily by the managers. Our through the years, we still believe, like our Megan Moriarty of Dye Van Molemployees are encouraged to take the long founders, in offering great products at fair & Lawrence can be contacted at 866.842.1660, or by e-mail atview over short-term profits in making prices; we still invest in retaining employees mmoriarty@autosuccess.biz. W.P. Bone isbusiness decisions, and we are proud to be who share a common belief in conducting the dealer at Wilson County Automotive.recognized for our efforts.” business ethically; and we are still actively He can be contacted at 800.368.6198. 10 www.autosuccess.biz
  8. 8. Ever wonder where your support goes after your bank merges for the third time?We’re dedicated exclusively to your business. When you choose Chrysler Financial for your wholesale andretail financing needs, you’re choosing a company that has done just one thing for more than 40 years.Automotive financing. From customer retention and financial software to real estate loans and E.L.V.I.S., ourpeople, products and services are solely dedicated to helping you sell more vehicles. In fact, we’re completelyinvested in your long-term success. So you don’t have to wonder whether we’ll be there for you in the future. Chrysler Financial is a member of the DaimlerChrysler Services Group.
  9. 9. sts ms ls fis sf ZigZiglar sales and training solution Telling is Not Selling As a sales Closed Questions Open questions are important because they professional, do you These are questions that have one-word or give you vital information. You also receive spend more time “closed” answers. At the beginning of the more valuable insight. You start to identify telling or more time sale call, these should be seldom used. When how receptive the customer is to your sales asking? If you were using these, the sales person is not giving the approach. Is he or she eager to give you to record your sales customer an opportunity to expand on the information or hesitant? Open questionsinterview, you’d probably find you are answers. Closed questions usually uncover allow you to gauge this.spending more time talking than you are facts but often don’t give any additionalasking questions and listening. information. Let’s say you are trying to Reßective Questions identify the buying criteria of a customer. These are questions that reflect on previousDuring a sales interview, the sales person You can ask: “In purchasing a car, are answers. These questions give the customermust identify the needs, issues and concerns monthly payments important to you?” The a chance to expand or expound on somethingof the customer. The best way to achieve this answer may be “yes.” The customer has just that was mentioned earlier. The customeris to ask questions and listen to the answers. responded with a fact. You may have to ask may have passed by a very important matterThen connect the answers to the needs and another question to identify other important and you now want to go back and address it.wants of the customer to your product and criteria. It may be better if you had asked You can use a reflective question to gain vitalservices. The key is to ask questions. That is an open question. Let’s take a look at open information. In the above conversation, thethe starting point of all successful sales. questions. customer mentioned a “good, quality service department” in one of the answers. You canQuestions are the sales professional’s most Open Questions now go back and gain additional informationvaluable tool. However, we all need to be These questions solicit “open” information. with a reflective question. For example, “Mr.reminded to ask the right question and ask You not only gain facts, but also information. Customer, what did you mean by good,the question right. These questions usually begin with who, quality service?” what, why, when, where and how. ForThere are several questioning types and example, when trying to identify buying Reflective questions give you additionaltechniques. Let’s cover four types of criteria, you may want to use: “What are information. By using them, you are alsoquestions that you can implement today. the top criteria you need when making indicating to the customer that you areThey are the C.O.R.D. questions. This this type of purchase?” The answer to this listening to him or her.stands for Closed questions, Open questions, question gives you more than just facts. ItReflective questions, and Direct-agreement gives you insights into why these criteria are Direct Agreement Questionsquestions. important. These questions gain agreement from the customer. These should be used when you are sure of the answer. They are usually answered with one word … and that word is usually yes. After you have showed the customer that you can save money or retain value or that a feature is easy to use, you can ask a direct agreement question. For example, “Mr. Customer, if we can meet your demand for fair trade in amount, will we have a deal?” If the answer is “yes,” the customer is agreeing that he’ll do business with you if you can meet his criteria. Questions are a sales professional’s best asset. Learn to ask the right question in the right way. Good luck and good selling. Zig Ziglar is the chairman of the board of Ziglar Training Systems in Dallas, TX. He can be contacted at 866.873.0026, or by e-mail at zziglar@autosuccess.biz. 12 www.autosuccess.biz
  10. 10. TOP 10 BEST OF THE BEST NADA 2005 Secrets of Dealerships Who Overachieve – No One Else Will Tell You: • What the best “response generating” ads all have in common. • The three most important goals you will ever set for your dealership. • How to condition your current customers to buy from you more often. • How to create advertising that attracts quality customers who negotiate less. • How to out-market your competition and dominate your market. • What the ultimate goal of marketing should be today. • How to create advertising that actually increases your closing percentage.Special Free Offer: Call 866.856.6782 now and ask for Sarah to receive your free copy of the J&L MarketingUltimate Growth Strategy, featuring an actual case study of Johnson City Honda.You’ll discover the exact growth strategy and marketing plan created by J&L Marketing and used by Johnson CityHonda and read how, in just their first four months, they increased sales by 65 units per month and their gross averagesby over $1,300 per vehicle!866.856.6782www.jandlmarketing.commove the crowd. crush the competition. count the money.
  11. 11. sts ms ls fis sf SeanWolfington leadership solution Four Keys to Integrity Selling, Part 2 In last month’s article clear, specific, written goals that you truly So, how can you cultivate goal clarity in we introduced the believe are attainable and that you feel you yourself and your staff? It helps to conduct four traits that drive deserve to achieve. Goals can be personal or a self-evaluation to determine where you successful behaviors professional in nature, but to achieve strong are, by rating yourself on a scale of 1 – 10 (1 and hold the key to goal clarity they must be clear, specific and being never, 5 being sometimes and 10 being peak performance. put in writing. For example, “sell more cars” always) in the following areas:Dealers, managers and sales people alike is a professional goal and “improve myare aware (and sometimes painfully aware) health” is a personal one, but neither is clearthat the same 20 percent of the sales force is or specific. To gain clarity, it helps to ask theconsistently at the top of the sales board while following questions: When you say “more”, 1. I write clear, speciÞc andthe other 80 percent will reach a mediocre how many more? What will that enable you measurable goals for salesplateau and stay there. The four keys to to do? What is the time limit? and income.integrity selling determine whether a salesperson will struggle to sell 10 units a month A good internal dialogue can transform “sellor become a top producer who earns into the more cars” into “My April goal is to sell two 2. I revise and update my goalshundreds of thousands of dollars. Selling with additional cars each week to hit 20 total sales each month.integrity means focusing on building value and take over the top spot.” Once you’veand believing that selling is something you used the most specific terms possible to write 3. My goals are consistent withdo for your customers, not to your customers. down a goal that is clear and measurable, my values and I feel worthyThis article is the second in a four-part series you will need to break down the goal into of achieving them.that will examine the four key traits of top small daily steps and list the obstacles youproducing sales people so that you can will have to overcome. For sales people, 4. I break my goals down intonurture those traits in your staff and seek out those small daily steps include every activity small daily steps.those traits in prospective new hires. on the road to the sale such as: • Inbound calls 5. I identify the additional skills • Internet leads and training I may need andThe four keys to • Follow-up calls any obstacles that may standintegrity selling • Follow-up e-mails, in my way.determine whether • postcards and letters Appointmentsa sales person will • Appointment confirmation calls If your score is less than 50, it might bestruggle to sell • • Client interviews Product selection and demonstration time to heed the Nike slogan and Just Do It. Consider starting your day a few minutes10 units a month • Dealership tour early to tackle additional sales activitiesor become a top • Write-up and steer clear of obvious time-wasters thatproducer who earns • Turn to management may distract throughout the day. If high Goal Clarity is a trait you’d like to seek ininto the hundreds To increase these activities, sales people prospective new hires, ask them to completeof thousands of will need to track and measure what they’re doing to establish a benchmark and identify the survey and provide examples. Sales people with high degrees of Achievementdollars. the areas that represent the best potential for Drive and Goal Clarity will often find a improvement. Once that area is targeted, he way to succeed, selling volume and gross or she can define the action steps needed, the regardless of product and market, but theyThe Key Traits That Drive Successful skills to build and the obstacles to overcome can wreak havoc with your CSI scores andBeliefs And Behaviors Are: to make sure he or she is working toward the morale of your dealership if they lack 1. Achievement Drive an attainable goal and not reaching for a emotional intelligence and social skills. 2. Goal Clarity wish. For example, if analysis shows that Look for the third installment in this four- 3. Healthy Emotional Intelligence a person’s greatest opportunity to improve part series next month in which we will 4. Excellent Social Skills sales lies with increasing success with turn our attention to Healthy Emotional inbound calls, a sales person might find he Intelligence.In the February issue, Achievement Drive or she needs to get faster when reaching forwas defined as the power everyone has, to the phone, more comfortable with a script,some degree, to beat the odds, to triumph more proficient with product and pricingover challenge and to tap into deep reserves questions and more skillful with setting an Sean WolÞngton is the owner ofof persistence, determination and a never- appointment that sticks. This knowledge BZResults.com. He can be contacted atgive-up attitude. Building on this need holds the key to creating a meaningful daily 866.802.5753, or by e-mail atto achieve, Goal Clarity means having action plan. swolÞngton@autosuccess.biz. 14 www.autosuccess.biz
  12. 12. TOP 10BEST OF THE BEST NADA 2005
  13. 13. sts ms ls fis sf ChrisHanson sales and training solution The Key to Success: Follow Up Your Sold Customers Many times as sales customers. Do not rely on the dealership to The Phone Call After the Sale. people we focus too do it for you. It needs to be personal, and it Call them the next day. Forget about CSI, much on the sale needs to be from you. manufacturer rules. My manager says so; if I today that we forget don’t I get in trouble. This isn’t their business, about the sale we Database. it’s yours. You call them the next day because made yesterday. The Not the dealership’s, yours. I started with you are building your business. Because it’sproblem with that is our sold customers are a Rolodex and then went to a computer important. New and used customers. Yes, Iour true lifeline. They are what make us or with a general follow-up program. Then I said and used customers, too.break us. This is the most overlooked part of went to a specific car program. I am in mymost sales people’s career. database all day, everyday. E-mail me and The Thank You Note. I’ll let you know how to get a computer Two days later, send them a nice thank youI know if you’re newer to sales you want to program for as little as $20. The one I use note. Make it count. Have your logo on it. Iflearn how to get customers in to see you, and now was $495. First I bought a laptop, and you want my thank you note, e-mail me andthat’s a valid concern. I want to first show now I use a desktop computer. Can’t spend I’ll mail one to you.you the importance of your sold customers, a lot of money? E-mail me and I’ll give youbecause that is the foundation of why I am a couple places to check out where you can Monthly E-mail Newsletter.successful. Period. I want you to look at your find a laptop for as little as $200 to $300. Collect their e-mails! Send them newsold customers in a different way because rebates, new models, fun stuff. If you wantwhen they purchase their next vehicle from to see my newsletters, e-mail me.you, it will be easier, quicker and way morefun! You will start to develop a friendship.Expect the extraordinary. Are you just another Quarterly Newsletter. The purpose of this is to have your name go sales person doing the by them again. Tell them about what you’veLet’s forget about steps of the sale andclosing for a minute and take a closer look same thing everyone been up to. Tell them about new models coming out. Give them tips on maintainingat what our sold customers really mean to us. else does? Do these their vehicle and other household things.This will put you on the road to success. things and get ready What do you like to read? Have a contest with a drawing. If you want more information onYour Savings Account. to wow them! Rise this, please e-mail me.By staying in touch with sold customers youare putting them in your interest bearing above the rest. E-mail and Video E-mail.savings account. When they purchase from Set yourself apart. I send out a monthly e-mail newsletter – it’syou, they go into your savings account.Monitor them. Keep a close eye on them and Whether you have one free! I also use video e-mail. It’s very cool and very affordable. E-mail me and I’ll senddon’t let anyone rob them. Trust me, they are customer or 1,000, you one. start today. Expect theyours to lose. My security is top of the line.When I put them in my saving account, no Service Dept.one - I mean no one - can touch them. I have extraordinary. You should always be looking in the serviceput into place ways to keep my customers. I department for your customers. You aretake other people’s customers all the time but never too busy. Talk with them a fewI do not lose my customers. You see, one day minutes. Visit. Make a friend. I know when- and sooner then you think - they will add to The Delivery Package. many of my customers are in for servicetheir value. They will come in to buy again I don’t care if you’re doing a spot delivery because they call me to set it up. I am theirand again. They will send other people in or they are picking up the vehicle the next contact.that will purchase from you and then you can day, do this!put them in your savings account, as well. Is it work? You bet! Will you build aAnd that is not worth losing! Guard them Small pad of paper, dealership pen, some successful CAREER? YES! Are you justwith your life because they will become your candies, a small travel-size package of another sales person doing the same thingcareer, your lifeline, the difference between tissue, pennies, nickels and quarters in the everyone else does? Do these things anda J.O.B. (Just Over Broke) and a successful change holder and note. “Just a few things to get ready to wow them! Rise above the rest.career. get you started in your new vehicle. Enjoy, Set yourself apart. Whether you have one Chris.” It will only cost you two or three customer or 1,000, start today. Expect theFortunately, when I first started selling cars, I bucks a car. Hint on getting note pads: parts extraordinary.read about how important it was to follow up stores, windshield places and your customerswith customers and I took it to heart. One of who own businesses – FREE. Ask for somethe biggest reasons I have become successful and tell them what you do with them. It’sselling cars is because I put a lot of energy free advertising for them. Do you want to dointo following up with my sold customers. a small thing that has a big impact? Try this. Chris Hanson with Hibbing Chrysler can Don’t underestimate this; it’s the little things be contacted at 800.901.2862, or byLet’s talk about what we can do to keep our that matter! e-mail at chanson@autosuccess.biz. 16 www.autosuccess.biz
  14. 14. MEET YOUR NEW E-PLOYEE...WORKS 24/7 WITHOUT A SICK DAY OR VACATION!TIMEHIGHWAY.COM replaces telephone-based scheduling with internet technology that enhances the effectivenessand customer satisfaction of your dealership. By scheduling appointments directly through your web site, your customersmake conÞrmed appointments instantly without call-backs. TimeHighway.com puts your service department’s scheduleon your web site, making it possible to schedule appointments 24 hours a day, 7 days a week, from anywhere. INCREASED CUSTOMER SATISFACTION WITH WEB-BASED APPOINTMENT SCHEDULING IS THE FUTURE! For More Information Contact Karen Dillon at (800) 901-3054 or kdillon@TimeHighway.com 5633 Strand Blvd TOP 10 Suite 302 BEST OF THE BEST NADA Naples, Florida 2005 (800) 901-3054
  15. 15. sts ms ls fis sf JimAdams sales and training solution Building Your Brand Factories spend more brand image than the factory. In our award-winning customer service to every billions of dollars market we sell Kia, Honda, Pontiac and sales, service and parts department every year trying to Buick, but our brand is ROPER. customer that enters our facility, calls bring customers to our number or visits our Web site.” Once their products and Every new car dealer sells new cars. Every you have a mission statement you mustdrive traffic to your showroom. Most new car manufacturer builds great cars. gain a buy-in from the entire team: sales,factories assign the dealership an area of What sets your dealership apart? I am parts, service, office personnel and theresponsibility and an annual market share sure that you have seen dealerships in your detail shop. Every employee that walks intogoal for your area of responsibility. area that may not be in the best location or the dealership must be focused on award don’t have a new state-of-the-art facility, winning customer service 100 percent ofThe most important thing that we have to but remain a real player in your market. the time, with every single customer withremember is that thousands of franchised Chances are that they have taken the steps whom they come in contact. Treating peoplenew vehicle dealerships rest in rural markets necessary to build their brands. with award-winning customer service allwhere national projections do not apply. of the time creates owner loyalty. LoyaltyRural dealerships can obtain market share So how do you build your brand? creates repeat owners and referrals. Oncenumbers two to three times the national 1. It starts with a mission statement. The you have a captive customer he or she willshare numbers. How does this happen? focal point of what you want your dealership buy whatever you sell. Period. Bob Atwood,Brand image. Family-owned dealerships to be. Not a slogan or a catch phrase but instructor of the NADA dealer academy, saidthat are passed down from generation to the message of your dealership’s character. one captive customer will spend $517,000 atgeneration, like a family heirloom, carry Our 2005 mission statement is, “To provide your dealership in a lifetime if you just act like his or her business is important to you. 2. Practice what you preach. If you are going to say it, you’d better do it. There JEFF RAMSEY & CO’S is nothing more insincere than a dealership that says one thing and does another. If your Internet/Marketing Travel Incentives focus is great customer service, do not just say you provide it, but show your customer If you are spending $20,000 or more on every day the difference between your current media products, I will show you how dealership and the one down the street. to spend 1/3 of that! 3. Get involved in your community. There I know these programs work and are hundreds of ways to get involved in your community. Little league, Cub Scouts, I am willing to put my $money$ Girl Scouts and the Chamber of Commerce where my mouth is! are excellent organizations with which to begin giving back to your community • 50,000 Piece Solo Mailer and an excellent source for new business • Internet Credit Web Site contacts. Give your community a reason to • Call Tracking System do business at home by taking an interest in the things that are important to it. • 25 to 50 3 day/ 2 night mini vacations (you can purchase together or separately) 4. You reap what you sow. Having no • Guaranteed Results Only $7995.00 standard of excellence contradicts right living. Take care of that community and it will take care of you. call me for details 866.842.1712 e-mail: jramsey5@sc.rr.com Jim Adams is the general sales manager at Roper Kia in Joplin, MO. He can be contacted at 800.905.0627, or by e-mail at jadams@autosuccess.biz. 18 www.autosuccess.biz
  16. 16. sts ms ls fis sf CarolMartin sales and training solution How to Identify and Sell to the Technician Personality Technicians, typically However, if you disagree about an seem reserved, important selling point - a potential deal serious and skeptical breaker - and you know you’re right, of sales people. have some black and white proofs handy. Technicians have a prove-it-to-me mindset Should you still try to and may want to see records, reports ordazzle them with your charm? Is it OK to some other documented facts that will fullybe funny? Or would you benefit by being substantiate your claims.almost as understated as they are? So far, we’ve discussed a typicalOne easy-to-spot characteristic of a Technician’s restrained demeanor, you are their cureTechnician personality is a pragmatic, preoccupation with details and facts, andrestrained business approach. He or she heightened sensitivity. But what about theis typically bottom-line oriented and pace of these individuals? Do they expectinterested mainly in getting answers to very you to take your time when showing thespecific and, sometimes, highly technical vehicle? Should you explain everythingquestions. Don’t be frivolous with a carefully, repeat information for emphasis,Technician. or keep things moving along swiftly?If your prospect almost immediately seems Considering their craving for specifics,a little cautious, conservative, impatient, Technicians are surprisingly fast-paced.and concerned about the particulars of a They can become restless easily so it’s bestvehicle, he or she may be a member of to cut to the chase by pointing out a vehicle’sthe Technician personality group. Leave features and touching on the pragmaticout your humorous stories and cut back reasons to finalize a deal. Most Technicianson small talk. Listen intently to the few dislike high-pressure sales tactics, but theywords your potential buyer may speak and usually respond well to clear-cut logic and astart thinking in terms of pertinent data and sincere acknowledgement of their research.facts regarding specific vehicles; manyTechnicians come to a dealership only Different Measures of the Same Traitsafter they have scrutinized reviews and All Technicians are not created equal.memorized statistics about their favorite While their overall pattern reflects people These kids andmakes and models. who are politely assertive, quiet, hurried millions more and meticulous, each individual’s level of Mary Tyler MooreEven if you innocently misstate MPGs (just these traits will vary. For example, some International Chairman have Juvenilea little), die-hard Technicians will take you Technicians can be so standoffish they Diabetes, a disease thatto task and point out your mistake. The always seem aloof, while others warm up threatens their lives every day.assumption that “close enough is good slightly once they get to know you better.enough” simply does not fly with these One person might seem extremely antsy, None of them can outgrow it.detail-oriented individuals; to maintain while another may appear to be simply a But we’re closer than ever toyour credibility with them, you need to little pressed for time. a cure. Please, help us makerelay very accurate information. If you’reunsure about the answers to questions, Technicians pride themselves in being life-saving research possible.do some research or ask your manager. pragmatic and by the book. They’re Call 1.800.533.CURE or visitWhatever you do, don’t just guess. usually conscientious realists who are not easily swayed by hype or hearsay. To www.jdrf.org.Technicians are not highly assertive or increase the likelihood of a sale to them,authoritative, but they can stand their be professionally personable, informative,ground when they think they’re right; still, exact and time-driven. Keep in mind thatthere’s no point wasting time by trying selling the Technician can be relativelyto challenge them on issues that are not easy ... if you know which buttons shouldcritical to the sale of a vehicle. They often and should not be pushed.become defensive, sullen or visibly shakenif their opinions are questioned. Go along Carol Martin is a senior consultantwith them if the subject of contention is too with The Omnia Group. She can betrivial to really matter (which is sometimes contacted at 800.601.3216, or by e-mail atthe case with high-level Technicians.) cmartin@autosuccess.biz.march 2005 19
  17. 17. sts ms ls fis sf TonyDupaquier f&i solution Service Contracts Offer More Value to Our Customers Today Then Ever Before In order to overcome service drive, he or she told the service association group? A reason these sources tell objections, business advisor of the problem. After a quick check the customer not to buy one, is so they can managers need to be of the mileage, year of the car and to see if sell them an inferior product. prepared for today’s the vehicle’s warranty was valid, the service educated buyers and department attached a tag and fixed the car Product Knowledge educate themselves on as soon as possible. Factories have since A business manager must have knowledgeVSCs and the advantages they have over the changed their procedures. Most business about the service contracts offered by theseLimited Factory Warranties. managers know this if their dealership has other sources. The majority of the information ever gone though a warranty audit. Advisors is available online, or make a phone call.“It costs too much.” are now trained to look for failures as opposed“Compared to what? Gasoline costs to defects. In many cases the Limited Factory Here are a few of the major differencesAmericans an average of 10 cents per mile. Warranty does not cover failures. However, between the VSCs dealership’s offer and theAutomobile insurance costs about 16 cents with the majority of the exclusionary VSCs cheap ones offered by other sources.per mile. If someone does not maintain a now available, many of those failures wouldvehicle - new tires, oil changes, new brakes - be fixed. Reimbursement policies: Several ofand does only the two critical items: insurance the service contracts are 100 percentand gas, he or she is spending about 26 cents Remember when customers received reimbursement polices, in which theper mile to drive an automobile. A VSC costs a complimentary rental car when their customer must pay up front for the repair andless than 3 cents per mile.” vehicles were in for service for an overnight then apply for repayment. As with any policy, repair? Image the amount of money spent on the repair must be an approved repair. Is itEducate every customer on how inexpensive rentals during that time. The factories, for only after the repair is made that the customera VSC is when compared to gas and the most part, have reduced this coverage finds out if the repair is approved?insurance? It is the responsibility of the or have eliminated it all together. Thebusiness manager to inform the customers companies that still offer some form of rental Labor Hours: There are several polices thatof this. reimbursements are some of the high lines. will only pay labor hours according to an However, for everyone else, the customer’s internal guide. The VSC’s provider doesWhen the customer asks the question, “How car must be in the shop overnight for warranty not use the same labor guide as the factorymuch is it?” give a number. It can be the full work, exceeding eight hours of labor, which or books used nationwide, like Chilton.amount, “$1783,” or monthly installments, usually means the repair is major like an Therefore many dealers will refuse work“Only 18.50 a month,” or on a per mile engine rebuild or a transmission fix. Many from certain VSC customers because theiramount, “Less than 3 cents per mile.” Break of the repairs in shops are done in under policy will not pay for the work at the shop.the amount down to something small and three labor hours, but it is required that thealmost meaningless. vehicle sit at the store for two days until the One VSC advertised on the Internet revealed, parts arrive or a technician is free to work on in very fine print, that it only covered partsMaximizing verbal communication is also the vehicle. For the majority of customers, and not labor. Parts? Only parts? Granted,important (57 percent of communication the only way to receive any type of rental car there are several parts on today’s vehicles thatinfluence). Be confident and congruent; your is through a VSC. could cost a considerable amount of money,voice qualities or tonality must match what but I would be concerned about the labor costyou are saying. Roadside Assistance is changing, too. With associated with them. Consider a R.O. ticket the evolution of satellite navigation and with a $14 part and four labor hours to get the“They don’t cover anything.” GPS locators, Roadside Assistance is now piece installed.Some cheap, component-coverage-only an electronic eye in the sky and usuallycontracts may not cover much except for costs a yearly fee. Many cars without these Service contracts offer more value to ourmajor lubricated mechanical items. When high-tech luxuries are left out of Roadside customers today then ever before. Withselling an exclusionary policy, ensure the Assistance programs. A good VSC comes good product knowledge, good competitivecustomer receives it. with Roadside Assistance and Trip Interrupt product knowledge and a true understanding service, ensuring the customer’s safety in the of what the Limited Factory Warranty coversExclusionary policies sold today have more event of an unforeseen problem. and does not cover, a business manager’sbenefits than many of the manufacturers’ VSCs sales should dramatically increase byLimited Factory Warranties. The factory Between failures, rental cars and Roadside professionally presenting this knowledge ononly covers defects. A defect is a bad part or Assistance, it is very easy to see the need for to customers.a bad assembly of a part that occurred in the a VSC during the Limited Factory Warrantyfactory. The Limited Factory Warranty does period, and it is the responsibility of thenot cover a failure. A failure results when a business manager to ensure the customer ispart no longer operates according to factory presented the value, as well.specs, usually due to normal wear and tear. Tony Dupaquier is the director ofEvery business manager should know the “I was told not to buy one.” F&I training for American Financial &difference. By whom were they told not to buy one? Was Automotive Services Inc. He can be it the credit union, the insurance company, contacted at 866.856.6754, or by e-mail atIn the past, when a customer arrived at the a consumer magazine, the Internet or an tdupaquier@autosuccess.biz. 20 www.autosuccess.biz
  18. 18. TOP 10BEST OF THE BEST NADA 2005

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