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  1. 1. Get your own personalized Louisville Slugger Baseball Bat! pg.4 .biz Mark Tewart Eliminate Your Pain Expense Control:November 2003 Advertising and Policy Adjustment Introducing Mooch Marketing Penetrating the Now Market PERMIT NO 879 LOUISVILLE KY Dealers Choose Outsourcing PAID Louisville, KY 40202 US POSTAGE Suite 202 PRSRT STD 756 South 1st Streeta division of Systems Marketing, Inc.
  2. 2. ™ Jim Ziegler wants to... Pump You Up! Do you have the desire, strength, and endurance to handle the Ziegler "Supersystems"?Let Ziegler Supersystems pump you up with our “team approach” to automotive SALES MANAGER FORUM:sales training. Our training is centered on maximizing your dealership’s profit Motivating your Sales Team topotential, on both the front and back end. Nothing is left out. Ziegler Higher ProfitabilitySupersystems’ rigorous sales training gives you the muscle to increase your Taught By James A. Zieglerstrength in automobile sales! Atlanta, GA Nov. 11 - 12, 2003 Atlanta, GA Dec. 10 - 11, 2003Be prepared! This training is not for wimps! No pain, no gain! The sales Atlanta, GA Jan. 13 - 14, 2004process can be tamed when you have the right muscle! Start training with Atlanta, GA Feb. 10 - 12, 2004Ziegler Supersystems today! Average people with great procedures can do incredible THE COMPLETE F&I things! Call today for a FREE information kit. MENU SELLING SYSTEM Present 100% of your products 100% of the time! M I TE LTIESSAONAL Taught By Becky Chernek THLESUROF s Sponsored By Jim Ziegler & Ziegler Supersystems, Inc. Atlanta, GA Nov. 18 - 20, 2003 E P SA Serie Las Vegas, NV Dec. 9 - 11, 2003 V ideo day! o Tampa, FL Jan. 13 - 15, 2004 Call T 0-9047 1-800 -61 1-800-610-9047 Charlotte, NC Feb. 17 - 19, 2004 Dates and locations subject to change
  3. 3. manager I N S I D E driventeam operation uccessrevenue automobil 4 solutions Prospecting Your Way to Higher Profits Terry L. Isaac 5 Teaming Up With Your Customers Brian Tracy profitprofessional 6 Penetrating the Now Market Jeff Fishel 8 The Secret of Golf Exists Brian Manzella sales10 Introducing Mooch Marketing David Thomas11 Cash In With Online Service Sales Iain Smith12 Selling Is About Building Relationships Fran Taylor13 How to Increase Customer Satisfaction and Generate F&I Income George Jackson14 How to Find Good Sales People: 10 Tips to Find Successful Hires Patricia Gardner16 Eliminate Your Pain Mark Tewart18 $534,000 Down the Tubes, Part 1 Joe Verde20 Sales From the Internet: How to Limit Spam, Part 2 Dennis McDonough22 Expense Control: Advertising and Policy Adjustment Timothy Gilbert23 Added Value for Your Customers Brian Ankney26 Moving Forward to the Close Tony Ray Munson28 Dealers Choose Outsourcing Jeff Morrell29 Increase Your F&I Bottom Line Frank Martin30 Big Sales Dollars In the Service Department Steve Hiatt I like reading AutoSuccess, because it gives me the tips I need in the automotive market place and does so with integrity in mind. - Ross Silvey, Silvey Motor Co., Inc. Psalms 37:3-5 Patrick Luck, Editor & Publisher inventory Success Driven Solutions • Trust in the Lord, and do good; so Susan Goodman, VP of Operations you will dwell in the land, and enjoy • security. Lindsay Porter, Copy Editor Take delight in the Lord, and he will 756 South 1st Street, Suite 202 • give you the desires of your heart. Louisville, Kentucky 40202 Courtney Hill, Advertising Services • courtney@autosuccess.bizCommit your way to the Lord; trust in Toll Free: 877.818.6620 Kim O’Bryan, Advertising Services him, and he will act. • Facsimile: 502.588.3170 In God We Trust Web: Thomas Williams, Creative Director dealer • thomas@autosuccess.bizAutoSuccess 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 Subscription rate is $75 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorialsand graphics are subject to editing for grammar, content, and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; viewsexpressed 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.
  4. 4. sales and training solution TerryByL. Isaac Terry L. Isaac Prospecting Your Way to Higher Profits A true sales 80 percent of the time they give you 2pm when the prospect is at work, professional new leads to work. people will talk with you at work, creates their own because they’re getting paid for it. The opportunities and How about the 90 percent of ‘be backs’ reason for calling the prospect is to will not solely that won’t be back, call them and set the appointment, give the prospectdepend on the dealership for their success. prospect their household, friends and reasons to come in to the dealership,The coming months are going to test your co-workers, and relatives. How about big sales events, closeout sales, etc.sales people’s skill levels of producing all the manufacturer leads, service When setting the appointment, give thetheir own prospects. It will be a challenge leads, Internet leads, F&I leads, the prospect choices of times, and alwaysfor you to keep them producing and retain dealership is loaded with leads to work. go for today, if not set it for that week.them. When you teach your sales team to The sales person can also produce If the prospect is not in the market,prospect effectively, it takes a tremendous leads by running their own ads in the prospect them to replace them with aamount of pressure off the dealership and high school paper, church bulletin and/ new lead and their daytime number.advertising budget. How great would it or neighborhood papers. How aboutbe to have the biggest percentage of your calling people who are selling their The prospecting process is never ending,traffic produced by your sales team? The own vehicles in the paper, real estate and increasing your sales and profit willtraffic they produce will have a 50 percent people, call people who attempt to sell depend on the prospecting efforts ofclosing ratio vs. the ad traffic of 20 percent. their own house without an agent and your sales team. Without increasing yourHere are ways to start your sales people are successful. This kind of activity is spending, you must continue to developprospecting for your dealership: what you need out of your sales team. your sales team skills in prospecting. The There are so many ways to prospect dealership will never avoid spending on 1. Prospecting new leads. new leads, and you have to get your advertising to drive traffic, it’s marketing Getting new leads is the basis for all sales team thinking that way. 101, but remember, the money spent on production in sales. A sale is the result advertising is a short-term investment, of working the lead. When a sales 2. Working prospects. investing in your sale people is long-term. person is out of leads, he/she is out of Once the sales person gets the lead, work and depends on the dealership’s the lead becomes a working prospect. traffic. Leads are everywhere, start To work the prospect effectively, they Terry L. Isaac is the Corporate Sales with the dealership after every sale, must have the right information (the Trainer for the Neil Huffman Auto Group. have the sales person give the sold daytime number is the most important). He can be contacted at 866.265.4680, or customer a prospecting sheet to fill out, Most calls are made between 9am and by email at NEW SUBSCRIPTION OFFER Reward yourself and your heavy hitters in every department BUY A SUBSCRIPTION GET AN OFFICIAL, PERSONALIZED with an official, personalized Louisville LOUISVILLE SLUGGER BASEBALL BAT Slugger baseball bat! AutoSuccess, the only sales-improvement magazine, has teamed up with cross town Louisville Slugger to bring you the best double play in the business. Order your 1 year subscription to AutoSuccess at our everyday price of $75 and get your very own ofÞcial, personalized Louisville Slugger Baseball Bat FREE.* Additional subscriptions are only $37.50 and additional personalized bats only $49.95. 877.818.6620 * Extra bats can be ordered at $49.95 each. Supplies are limited, offer lasts as long as supplies are available. 4 successful solutions at
  5. 5. leadership solution BrianBrian Tracy By Tracy Teaming Up With Your Customers What is the purpose strategies. Your ability to develop and and believe in what you say. In many cases, of a business? The maintain long-term customer relationships the quality of your relationship with the most common, is the foundation for your success as a customer is the competitive advantage that immediate answer is, sales person and your success in business. enables you to edge out others who may “To make a profit.” For your customer, a buying decision have similar products and services.But this answer is wrong. The purpose of usually means a decision to enter into aa business is to create and keep a customer. long-term relationship with you and your The single biggest mistake that causes salesIf a business successfully creates and keeps company. It is very much like a ‘business people to lose customers is taking thosecustomers in a cost-effective way, it will marriage’. Before the customer decides to customers for granted. Almost 70 percentmake a profit while continuing to survive buy, they can take you or leave you. They of customers who walked away from theirand thrive. If, for any reason, a business don’t need you or your company. They existing suppliers later replied that theyfails to attract or sustain a sufficient number have a variety of options and choices open made the change primarily because of aof customers, it will experience losses. Too to them, including not buying anything lack of attention from the company.many losses will lead to the demise of the at all. But when your customer makes aenterprise. decision to buy from you, they become Beyond relationship selling, the second dependent on you. And since they have key to keeping customers for life is theAccording to Dun and Bradstreet, the probably had bad buying experiences in ‘partnering for profit’ approach to businesssingle, most important reason for the failure the past, they are very uneasy and uncertain sales. When you deal with a businessof businesses in America is lack of sales. about getting into this kind of dependency person, you can be sure of one thing, thatAnd, of course, this refers to re-sales as well relationship. What if you let this customer person thinks about their business day andas initial sales. So your company’s job is to down? What if your product does not work night. It is very close to them. And if youcreate and keep a customer, and your job as you promised? What if you don’t service come in and talk to them and ask themis exactly the same. Remember, no matter it and support it as you promised? What if questions about their business, looking forwhat your official title is, you are a sales it breaks down and they can’t replace it? ways to help them run their business better,person for yourself and your company. And These are real dilemmas that go through the customer is going to warm up to youthe best way to increase your value as a the mind of every customer when it comes and want to be associated with you andsales person is to build your customer base. time to make the critical buying decision. your company. As a partner, you shouldThe two most important words to keep in Because of the complexity of most always be looking to help your customermind in developing a successful customer products and services today, especially to cut costs and improve results in theirbase are positioning and differentiation. high-tech products, the relationship is area of responsibility. You should look for actually more important than the product. ways to help your customer in non-businessPositioning refers to the way your customers The customer doesn’t know the ingredients areas as well. You should position yourselfthink and talk about you and your company or components of your product, or how as someone who cares more about thewhen you are not there. The position that your company functions, or how they will success of your customer than anythingyou hold in the customer’s mind determines be treated after they have given you their else, even more than you care about sellingall of their reactions and interactions with money, but they can make an assessment your product or service. This approach toyou. Your position determines whether or about you and about the relationship that partnering in profit with your customernot your customer buys, whether they buy has developed between the two of you is a key way to differentiate yourself andagain and whether they refer others to you. over the course of the selling process. So, to keep your customer for the indefiniteEverything that you do with regard to your in reality, the customer’s decision is based future.customer effects the way your customer on the fact that they have come to trust you Continued on page 30thinks about you.Differentiation refers to your ability toseparate yourself and your product orservice from that of your competitors. Andit is the key to building and maintaininga competitive advantage. This is theadvantage that you and your companyhave over your competitors in the samemarketplace, the unique and special benefitsthat no one else can give your customer.There are three keys to keeping customersfor life: relationship selling, partnering forprofit and consultative selling. These areall methods for differentiating yourselffrom anyone else who is offering the sameproduct or service. They are ways to getcustomers and keep them. Relationshipselling is the core of all modern sellingnovember 2003 5
  6. 6. marketing solution Jeff Fishel By Jeff Fishel Penetrating the Now Market From a sales No one wants to be perceived as pushy. designed to capture attention, an offer perspective, A pushy person or organization implies put forth to create value, a time limit everyone employed one who doesn’t respect the customer. placed upon the offer to instill a fear- at the dealership, They push for the sale regardless of the of-loss or sense of urgency, and lastly, as well as the customer’s needs or desires. a ‘call to action’ that serves as yourdealer’s advertising agents, should have invitation to purchase.a comprehensive understanding of the To be urgent or insistent however,‘now’ concept. This is especially true does not necessarily mean to override Generally, the shorter the time limitas it applies to the notion of urgency. the needs of the customer. Of course on the offer, in direct proportion to theUrgency may be defined as the quality customers’ needs should be paramount perceived value of the offer, will resultor state of being insistent and if this is in helping them find the correct vehicle. in larger percentages of now buyersto be achieved within your organization Yet once the vehicle is found, it is who will respond to your specificthen you must insist upon it right now. imperative for the dealership to insist advertising campaign. In other words, upon the customer’s immediate action. the now market must act now if they areDealer principals should insist upon The decision must be made now because to benefit.a sense of urgency within their the conditions making the purchasemanagement team. Managers should, favorable, at this time, will end soon. By incorporating the direct marketingin turn, instill a sense of urgency within formula into your advertising, youthe sales team. And finally, the sales By this definition then, the now market will speak directly to the now buyerspeople must create urgency within the will consist of the number of consumers in your market. Furthermore, your adminds of their customers who visit the in any market, at any given time, who campaigns will lend credibility to yourdealership. could be persuaded to purchase a sales force in their attempt to convert vehicle right now. Every automotive customers into buyers.It is the sense of urgency that transforms market in the world has a percentage ofthe promise of tomorrow’s sales into these now buyers every day. No doubt the successful conversionbona fide profits today. Once dealerships rate of shoppers into now buyers willunderstand this fact, they must then From an advertising perspective, the increase according to the sales abilitybegin to execute targeted advertising success of any specific promotion will of your sales team, the managing abilitycampaigns aimed specifically at what is depend upon drawing larger percentages of your management team, inventorycalled the now market. of now buyers to your dealership than considerations and many other factors. your competitors. In order to accomplish Yet the primary responsibility ofBefore defining the now market, let’s this goal, first an effective message must motivating the now market to visitfirst compare the concept of urgency be established followed by an effective your dealership, at any given time, restswith that of being ‘pushy’. Many delivery of the message. squarely upon the shoulders of yourdealers and managers, not wanting dealership’s advertising be perceived as pushy in their If your ad message is to attract themarketplace will erroneously remove majority of now buyers at any given Remember, creating the dealership’smost, if not all, aspects of urgency time, then you must implement the advertising message is only half of thefrom their dealership. In doing so, they standard approach for direct marketing equation. In order for the message tounintentionally diminish the ability of into your advertising campaigns. penetrate the now market completely;their sales staff to close deals. This would include: a creative theme an effective delivery of the message must be subsequently applied.Tell us what you think about AutoSuccess Magazine... Next month, we will consider the “Just a quick note to tell you how much I enjoy your magazine and look importance of media strategy and planning as well as two opposing forward to reading it every month! Also, good job on getting some of the best speculations in advertising: Frequency trainers/sales people in the business to write the articles. I have been selling versus Recency. cars for six years, and I average over 200 cars a year, and I still get tons of great ideas and helpful hints every time I read AutoSuccess. I can honestly say your magazine has put in place ideas, processes and word tracts that will help me reach the goals I want to accomplish in the next couple of years. I do have one problem with your magazine though; it only comes once a month!” Thanks again and keep the articles coming. Jeff Fishel is the National Sales Director for, Chris Hanson, and Sales Consultant / Internet Manager, Hibbing Chrysler Center He can be contacted at e m a i l y o u r t e s t i m o n i a l t o i n f o @ a u t o s u c c e s s . b i z jeff@Þ 6 subscribe today at
  7. 7. Leave nothing to chance Because you’re not playing games Experian Automotive helps you drive profits with information that connects cars and customers. Our solution suites are powered by the deepest, most extensive databases available anywhere, covering almost 450 million vehicles, 98 percent of all U.S. households and nearly 205 million credit-active consumers. • Vehicle History: Drive pre-owned vehicle sales by giving your customers detailed historical information and title protection • Loyalty Programs: Build profitable relationships by reaching customers with exactly the right message at precisely the right time • Prospect Campaigns: Acquire new customers by knowing who your prospects are, where they live, how to reach them and when they’re ready to buy • Market Research: Market effectively with information that tells you how the automotive market stands today, where you fit into it and in what direction it is headed • Credit Solutions: Give credit where it is due and make sound lending decisions with the most accurate and timely credit information available Stack your deck and call Experian Automotive today at 888 409 2204. Cars. Customers. Connected. By Experian Automotive. SMVisit Experian Automotive at NADA 2004, January 31 – February 3, Las Vegas, Booth #5735
  8. 8. golf tips Brian By Brian Manzella Manzella The Secret of Golf Exists The secret of golf, Clubhead lag can be learned. feel is the right forefinger. the holy grail of The place to start programming clubhead lag every golfer, trying is in the waggle. Far more than a haphazard This clubhead lag ‘pressure point’ which to figure out what pre-swing wiggling of the club to loosen Homer Kelley defined and all the great the PGA Tour pros tension, the waggle can be a powerful tool players have employed is in the hook ofdo that you don’t, the elusive key to more that lets you rehearse the difference between the right forefinger. Many golfers do notdistance and accuracy, does it exist? ‘address hands’ and ‘impact hands’. employ a ‘trigger’ finger (Sept.’03), but the advantages of doing so are many. Just as aThe secret of golf exists. In the waggle, the right wrist bends straight carpenter would have his thumb on top ofHomer Kelley spent 28 years researching back, flattening the left wrist. Call that the hammer handle to help him guide thehis golf swing mechanics bible, The Golfing condition ‘impact hands’ (pic 1). With hammer head, the golfer can use his triggerMachine. He named it and proclaimed it, impact hands and with the body pointed finger to guide the clubhead through impact‘the secret’. Ben Hogan figured out that it straight away, the clubhead is nowhere and beyond. Obviously the carpenter’swas in the hands. Some golfers try it and near the ball. The easiest way to bring these thumb does little to add to the main sourcesget worse. Many teachers teach the exact impact hands into impact is by pivoting of power in hammering, namely the wristopposite, fearing too much of it. What is it? your torso forward of its address attitude and the arm, and so is the case with the (pic 2). golfer. The golfer uses his unwinding torsoClubhead lag is the secret of golf. and straightening right arm for much of hisClubhead lag is simply defined as the It’s easier to maintain clubhead lag if your power, but he feels it in the right forefingercondition of the hands leading the clubhead torso (pivot) keeps pivoting through the because, like the carpenter’s thumb, it isthrough impact. More exactly, it is the swing. Add the straightening of the right directly behind the ‘hit’ and the hammer/sensation of a lagging clubhead sweet spot arm (without straightening the right wrist); clubhead.and a stressed shaft on the area of the hands you can see how force can be applied to thethat the shaft stress puts pressure on. ball without clubhead throwaway (pic 3). Clubhead lag is felt primarily in the ‘triggered’ right forefinger. When thisClubhead lag is a feel. Clubhead throwaway, change-of-direction occurs and the pressureIf you don’t have clubface control, you the opposite of clubhead lag. is loaded on the trigger finger, the inertia ofcan’t use it properly. If you slice, trying This through-the-ball procedure will the clubhead will also cause the clubshaftto do it and getting it half-right can make guarantee that you sustain lag through to bend. Done correctly, the start down canthe ball go farther to the right. In the first impact. But besides getting the hands into also add to the cocking in the left wrist (picarticles (Aug./Sept. ‘03), we discussed the their impact attitude, how did you create the 4). This slightly bent or ‘stressed’ shaft andproper grip and how to eliminate the slice lag and its pressure to start with? additional wrist cock gives potential powerthrough clubface control. that can be utilized if maintained long Clubhead lag is enough in the downswing.If you read and applied this information, created in the change of may find yourself with a new problem, At the top of the swing, or end of a less To sustain the lag, the pressure that createdthe hook. To curb this right-to-left ball than full swing, the momentum of the the lag must also be maintained. If not theflight you need some lag, which is clubhead clubhead is going away from the ball, so clubhead’s momentum will cause it to ‘runcontrol. Most golfers that learn to lag is the pivoting torso. When the downstroke away’ from the right forefinger and createthe clubhead, learn to lag it by trying not begins, lag pressure is loaded onto either the clubhead hook it. They learn it almost entirely left arm by the chest, the right hand by thesubconsciously, which is why most world- right arm, the last three fingers of the left Imagine pushing a shopping-cart downhill.class players that have written books, don’t hand by the left wrist, the right forefinger by On its own the shopping-cart would rollmention clubhead lag much, if at all. They the resistance to change by the clubhead, or slowly down the hill. But if you started tohave it and don’t even know it. all of the above. The easiest to monitor and run, the cart would go faster, and you will 1 2 3 4 8 check out
  9. 9. continued shaft loaded, and stores who can curve it left are often ‘leakage the wrist cock deep into hookers’, which means the only reason the the downswing where ball is curving left is that throwaway has the potential power can incorrectly closed the clubface too early. be utilized (pic 5). The wrist will uncock and the If you have fixed your grip and slice and shaft will unload all by are hitting it too far to the left, your newly themselves, without you developed lag will keep the clubface open losing any pressure on your long enough to straighten your ball-flight. trigger finger. The clubhead You should now be a very effective striker, stays behind the hands all the with both clubface and clubhead control. way to the follow-through5 6 (pic 6) sustaining the lag and Since the golf club has three parts: clubface, compression of the ball by clubhead and clubshaft, you now need tohave created lag pressure on your hands the clubhead. learn to control the clubshaft to learn whatwhere you are ‘pushing’ the cart. You aren’t every golfer wants, ball control.pushing the cart with your hands, you are Great ball-strikersdoing it with your legs, but you feel it in sustain the lag well past the ball. Next month, we will learn to set-up to theyour hands. If you stopped running as fast Ideally, lag pressure is constant to the end ball like a pro to begin to learn clubshaftas you started to, and really slowed down, of the swing as a goal and a feel. In reality, and ball control.the cart would keep going, and you would it might be lost just after the follow throughlose lag pressure. Same as the golfer that as the club swings past the hands in moststarts the downswing very fast but can’t swings. But you should try to never lose it.maintain that speed lost lag pressure. Most slicers have lost lag well before impact Brian Manzella is a PGA TeachingTo sustain lag pressure you must maintain and their hands are far behind the clubhead Professional. He can be contactedthe speed of your change of direction. when contact is made. But many teachers at 866.873.0036, or by email atSo, the ideal application is steady speed. and most slicers think just the opposite., or visitThis sustains the lag pressure, keeps the High-speed video says otherwise. People Service Advisor Training All Skill Levels Presented by.... • Increase Customer Paid Labor Sales and Parts Sales. • Increase Customer Satisfaction Scores. • Increase Customer Retention. • Set up a Non-Confrontational Jeff Cowan Complete Selling System and Culture. • Learn to Sustain Growth. • Learn to Control Your Customers and your Workday. • Learn how to Walk Around Every I Will Turn Your Service Clerks Into SELLING Service Car, Every Time TM Advisors. We Deliver The Most Intense Powerful Two • Learn the Sit, Flip, Pop and Day Workshops You or Your Service Advisors Have Look TM Technique. Ever Experienced! • Become a “Full Service Promise” TM dealership. We Also Deliver Our World Class Training In-House On Your Service Drive or On DVD. We have recently In-house on your service re-recorded our DVD’s. They now offer 40% More drive, offsite or on DVD Content and are available in Spanish. ASK FOR SUSAN FOR YOUR FREE 866.265.5552 DEMO DISK - RESERVE YOUR SEATING TODAY! SPACES LIMITEDnovember 2003 9
  10. 10. sales tips with David Thomas DavidByThomas David Thomas Introducing Mooch Marketing Encountering availability. A national chain grocery store, of any new car or truck earns free dinner for challenges and restaurant, Walmart and a mall occupied four at this restaurant.” The sign on the car setbacks can be three corners, and on the forth corner, a in the bank lobby at Walmart said, “Let us enough to hinder university existed. Last November, before finance your next car.” your sales and the two busiest retail months, they hadenthusiasm, or it can be turned into a a car on display on three out of the four Mooch marketing tips to get you started:great motivation to become a pro-active corners. When they asked for display areas, Where is the biggest question…wheremerchandiser and marketing guru. the Walmart manager said ‘no’. They then are your buyers spending their time and approached the independent bank branch money? Pick the ‘ground zero’ spotThere are several ways you can promote, located inside the Walmart. The bank (intersection or general vicinity) whereadvertise and sell your product without said ‘yes’. The restaurant manager agreed your target customers come and go in theirnecessarily increasing your advertising after they bought a quantity of their gift daily routines or where they spend theirbudget, consider mooch marketing. Many cards to give to their new customers and free time.good things can be accomplished if you just employees as bonuses. The mall chargedask. ‘Think out of the box’ to increase sales an ‘event display fee’, which was minimal What…what do you want your prospectsand succeed. considering their exposure. to see and understand? A new vehicle is available for them that is safe and easyThis is how one store used Always be prepared to answer the question, to buy, with service from a good andmooch marketing to their advantage: “What’s in it for me?” They will ask you. convenient location.They scouted out the best location in town(the busiest intersection) and decided that Be creative on your display. Their sign on How… how can the display benefit bothwas where they needed to be for maximum the car at the restaurant included customized parties? Pay rent at the intersection. Buyexposure. Buying a corner was out of the graphics in the restaurant’s logo color and whatever they sell. It is best to work out aquestion for two big reasons…cost and stated “Buy Me and Eat For Free. Purchase plan that is partner pay. They profit off of your success. When…common sense planning says that if it is not a permanent display, do it at the peak traffic times. Put a car in the mall just before the busy holiday season Log 200-500% more opportunities! for exposure. People are there because they want to spend money and are in the shopping frame of mind. Leader in Showroom Traffic, Rules…it must make sense and obviously, Lead Management, be feasible. You wouldn’t necessarily and CRM Software display a Lexus in Walmart. Upscale = real-time showroom & desking control upscale. Low scale = low scale. A pickup Track all outgoing truck in Home Depot would be a great fit. phone activity internet lead tracking system Don’t expect a lay-down with the big 2-way active DMS integration boy retailer, it’s a tougher sell through corporate. complete in-store training Minimize data entry Mooch marketing has the possibility of with license scanner drivers license scan, worksheets saving $1000’s in advertising cost. A pro- & credit bureaus active approach is critical to survival. Your service or product needs exposure. The right environment or stage is helpful. track more Be sure to check your local and state laws, and get manufacturers okay concerning The Higher Gear Group, Inc. bring back Hoffman Estates, IL 60195 offsite displays and events to make sure you conform. more tel 866.873.0029 fax 847.310.3196 close David Thomas is the Owner of Subaru more call for a FREE consultation and demonstration of Dallas. He can be contacted at 866.429.6803, or by email at 10 visit us at
  11. 11. marketing solution Iain Smith By Iain Smith Cash In With Online Service Sales As a dealer you things your dealership should know: should consider using the Internet First, many consumers who purchase to drive traffic their vehicles at a web-enabled dealership into your service aren’t even aware that they can scheduledepartment. Many dealers on the ‘cutting service online or how easy it is to use.edge’ used it as a new way to generate sales This capability is now available throughleads and stay a few steps ahead of their several of the leading automotive Internetcompetitors. In time, others caught up with portals. Consumers simply enter a year,the technology. Now, nearly every dealer make, model, zip code and description ofin the country is receiving sales leads from requested service. The system then displaysthe Web. dealers that can service the requested make within the requested area. The consumerBut what about service leads? Dealers and selects a dealer and then picks an availabletheir manufacturers have spent a great deal arrival date and time for the appointment.of their marketing dollars on the selling The transaction is completed with a fewaspect of their businesses, leaving little left clicks of the mouse.over to drive consumers to their own websites to schedule service. The use of online Second, there is a huge pool of consumersservice scheduling has been slow to get off who use the big automotive Internet portalsthe ground with only a small fraction of to manage their automotive needs. Dealersappointments being made online. need to tap into this rapidly growing customer base. Currently, there are onlineThings are changing, and those dealerships service-scheduling providers that canthat are best prepared for this will reap the make this pool of consumers availablebenefits and the profits over those who to dealerships through the Internet. Bychoose to wait. engaging with a provider such as MSN Autos or Yahoo Autos, individual dealerships canA growing number of users. now increase their potential customer baseAn analysis of service requests made by targeting everyone in their trading areaduring the first half of 2003 through a major who visits these automotive sites.automotive Internet portal showed that over35,000 consumers initiated requests for Keep in mind that you also need to chooseservice. This same analysis showed that the service-scheduling tool that is right formost vehicles scheduled via the Internet your dealership. When deciding which isare out of warranty, possibly explaining the best for you, pick the one that:average $300 spent in customer pay partsand labor. Additionally, studies show that 1. Is easiest to use for the consumer.47 percent of appointments are scheduled 2. Best integrates with the dealership’safter the dealership is closed, one in five of existing service appointment system.the consumers are new to the dealership, 3. Will be installed, up and runningand 75 to 80 percent show up for their quickly with little or no down time.requested appointment. Another important 4. Offers online training so the entirefact is that 69 percent of appointments are service staff can easily use the system.being scheduled for vehicle models thatare three or more years old. Attracting the Finally, only pay for what you use. Severalowner’s older vehicles into your dealership vendors offer a transaction-based onlinecreates opportunities for new sales. service-scheduling tool in which the dealer only pays when an appointment is actuallyAnd finally, is the obvious benefit that scheduled. Obviously, these transactionscheduling appointments online helps to charges should be affordable for thereduce the administrative workload of a dealership in relation to the gross profit perdealership’s staff, freeing them up to serve repair order.other customers. Iain Smith is the Vice President ofHow to get up-to-speed with online sales. eCommerce for ADP Dealer Services.To help take advantage of and profit from He can be contacted at 866.441.2785,online service sales, there are several key or by email at 2003 11
  12. 12. sales and training solution Fran Fran Taylor By Taylor Selling Is About Building Relationships Do you love people? To build a relationship you have to be allow me to be a professional.” When you Are you a people excited every time you get a customer. If go on a demonstration drive, don’t go person? Do you get you are excited about what you do and five or six miles, go on a demo. Let them along with people? what you sell, people will automatically drive as long as they want, fifteen miles Do you listen to see it. They will be excited too. minimum. How can you build any rapportothers? If you do, you have a good start in and relationship spinning someone aroundthe automotive business. Remember what is so special that you on a six-mile demo, without having a offer compared to the guy down the street. chance to ask, “Do you like the vehicle?”When you get your first customer and It’s the relationship you build. People wantevery customer after that, you start the to buy; they are just looking for a good Take the time to do it right and buildsale by selling yourself. Ask yourself why relationship with a sales person who helps relationships. Sell yourself on the meetanyone should buy from you? What do them make a buying decision. and greet, then demonstration and serviceyou offer that other sales people don’t? walk. It wouldn’t make sense to showWhat makes you special? Building a relationship means you must someone the service department before know your product and be excited about you ask them to purchase a vehicle. ShowWhen you get a customer, you should it. This takes time. When you know the the customer that you walk the walk andknow you are going to out perform the vehicles inside and out, you will keep their don’t just talk like the others that short cutcompetition, because you build a great attention because you are a professional the steps of a sale and think they are goingrelationship by mastering the steps of a and are building a good relationship. Do to sell a car and make If you start off by telling the customer not give a generic presentation. Knowyou will take care of them after the sale your product better than the competition.and are willing to do whatever it takes, Your time spent studying will come back When building a great relationship, it isyou build a relationship from the start. to you in dollars. easier to get the cash from the customerPeople will open up to you more, because when you take their offer to the show you care about them and don’t Building a relationship means everyone If you don’t have cash, all you have isjust want to take their money. goes on a demo. Tell them, “I insist, please conversation. Be ready to bump. No customer will buy a vehicle unless they think they have the best deal. Building a strong relationship right up front, following the steps of sale and being believable is the secret. It is much easier for the customer and you, when you put your heart in it. People see it and will respond to your attitude, self-confidence and professionalism. When you sell a vehicle your relationship is just beginning. Now, you keep the relationship going by sending the whole family birthday cards, holiday cards and ‘anniversary of the car’ cards. Call them on their birthday and contact them on a regular basis throughout the year. Take the time and build your relationship and hand write everything. Do not send a preprinted letter and think you are building a strong relationship. Do what others won’t and what makes sense. Build a relationship from the start of a sale, and you will make a great living selling cars. Fran Taylor is the President and CEO of Taylor Techniques, Inc. He can be contacted at 866.873.0041, or by email at 12 log on to
  13. 13. f&i solution GeorgeGeorge Jackson By Jackson How to Increase Customer Satisfaction and Generate F&I Income Any dealership of your presentation and do things better. the customer knows what responsibilities can have both a The menu presentation is a great start he/she may have to keep the coverage in completely satisfied and addresses much of this challenge. force, such as maintenance for a service customer and It does ensure that every customer gets contract. Always invite the customer to generate significant offered every product, every time, but it read the form, ask questions and let him/F&I income. To do so, you simply have to cannot control what is said throughout her know you are available at any time tofocus on the following three areas. the presentation or during the negotiation address concerns, and give the customer after the menu is presented. This is why your business card. Hurrying through aProduct knowledge and training. many dealerships have started recording delivery process is what most businessEvery trainer or speaker that addresses F&I transactions. It is a great tool for managers do. Be different. Be better. Thea group of students or a body of dealers compliance, training, consistency and customer will a 20-group format is perceived as an accountability. With the technologyindustry expert, someone who knows available today, burning a CD is quick, One additional suggestion would be forand understands the industry. A business simple and allows for easy storage. If your business manager to be the departmentmanager has the exact same challenge and you are in a dealership with multiple that works with the customer on claims,expectation from the customer. Every time business managers and multiple locations, particularly with credit insurance anda business manager is with a customer, it will also ensure a consistent presentation GAP. There is no better way to develophe/she is expected to be the person who from customer to customer, manager to product knowledge, product confidenceknows and understands the products, manager, and dealership to dealership and and awareness that customers benefit fromhow they will benefit the customer, and provide the dealership with a high level of the coverage than to be involved in thewhy the customer would want to enroll in legal protection. claims process. It will not only help you tothem. He/she is expected to be an expert. generate more revenue and improve yourThe only way to ensure that your business Contract and policy disclosure. CSI today, but it is a level of service thatmanager can meet these high expectations Before customers leave the business office, customers expect and will enhance youris with training. Enroll your business they should know what they bought, what repeat and referral business. Like the oldmanagers in training repeatedly, at least it costs and how to use it. This can best be saying, “If you don’t take care of yourtwice a year, and expect your business accomplished by doing a thorough contract customer, somebody else will.”manager to review the materials regularly. disclosure. Most people remember two things about a person, the first impressionThe presentation and professionalism. and the last impression. A bad delivery ofA business manager should never perform the paperwork and specifically the contracta presentation in a manner that would will result in a poor last impression. All ofpressure the customer to purchase just the positive things done to this point mayto get out of the office or hinder future still lead to a poor CSI survey, and statisticscar sales. All sales professionals need to show that this is an area of concern forimprove the quality of their presentation. many customers. Disclose the contract George Jackson is the Director ofWhen customers refinance elsewhere, flat fully and legally and thoroughly review F&I Training for American Financial &cancel products and/or arrange financing the itemization of the amount to finance Automotive Services, Inc. He can bebefore they visit the dealership, this tells section and truth-in-lending boxes. When contacted at 866.280.0301, or by emailyou that you need to improve the quality reviewing the product forms, make sure at 2003 13
  14. 14. leadership solution Patricia Patricia Gardner By Gardner How to Find Good Sales People: 10 Tips to Find Successful Hires You can find sales gets back to you, how well they write and 8. How do you people anywhere communicate, and how well their cover keep all of your hires on track? – the car sales lot, letter or emails are written. Generally, Learn to keep track of your sales people your realtor, even only 10 percent will fit your needs after – it helps you both. Do you know how department stores. this screening. Either you or the hiring many proposals, sales calls and newThe trick is finding skilled, profitable manager can take it from here. prospects your sales people are contactingones who have a good work ethic, are every week? You should. Figure out howinnovative and produce the results 5. What do you many contacts your sales people shouldyour company needs. Many times, the need in the ideal candidate? be making for success and hold them todifference lies in their professional sales Once you’ve narrowed your application it. Start tracking this information from theskills, not how hard they push for a pool, the best way to proceed is to very first day. There is available softwareclose. interview candidates by telephone and that allows the CEO to see the whole sales then check their references. Find out team, and their calendars, proposals andHere are some tips for finding excellent how much background each candidate prospects from anywhere in the world.sales people: has in your area, what their strongest Not only does this help your company and weakest skills are, and what they are keep track of its intellectual capital, in1. What do you need to get started? looking for in a position as well. When case someone is sick or quits, but it alsoA very specific ad with as many details checking their work history, contact allows you and your sales people to trackas possible is the best place to start. Be both professional and client references. commissions.sure to list the job skills, tasks, location, Ask professional references about theircompensation, travel, and if so, let them work ethic, their ability to produce and 9. How can youknow how much. If you want them to their communication skills. Ask clients get ahead of your competition?have a specific background, say it. The about their personal skills, attention Always be on the lookout to hire onelisting should indicate that you need to detail and if they ever cancelled or of your more successful competitors.professional references and former client were late. This should give you a better If you meet them and establish a goodreferences. That weeds out the job seekers understanding of each candidate’s rapport, you can see if they are unhappywith less than stellar performances. The strengths and weaknesses. where they are working now. This isad should be as granular as possible a great way to expand the company’sbecause the process of putting together 6. How do you Þnd horizons because they can bring a newthis job description forces the company out what they can really do? perspective to the company, and theyto think about what it is they want in a Many times, a wrong hiring decision is can tell you about the holes in yourqualified sales person. made because it is based solely on the biggest competitor’s core competencies. candidate’s background. It is imperative They can also bring a fresh look at your2. Where do you to find out what each candidate can company’s products.Þnd skilled sales people? actually bring to your organization. TheWhile there are many good services and best way to test them is to create a 90-day 10. Can you hire from unusual places?Internet sites that can assist in finding a action plan while you evaluate your top Competitors and associates are all upsales person who possesses the skills you candidates’ references. To really find out for grabs. Do not poach your customersare seeking, it is always best to look in what they can do, give very little input though, that’s a way to guarantee you’llyour trade journals. and see how organized they are, how be thrown out. It’s better to hire a client much detail they give and how logical that is leaving the company after they’ve3. What is the and realistic they are. If their references left. These hires can really speak a client’sbest way to Þnd new talent? are acceptable, let this be the topic for the language about your product and carry aIt may be tempting, but it is a major follow up interview meeting. Challenge lot of validity with other customers.mistake to continue to recruit from the them on their ideas and see how theysame gene pool. Don’t set yourself up to react to criticism. If you hire them, let this Finding good sales people can behave a stagnant company; be diversified. be their new plan to work from. If you get hard to do, but taking these steps willDon’t judge your prospects on strict enough of these from good prospective eliminate the confusion and stress fromcriteria. Think about what they can bring hires, you can put together a sales training the process. By following these tento help build your sales team and your program. steps, your company can be sure to findcompany. quality job candidates that possess the 7. How do you qualities needed to make your company4. How do you get your new hire on track? successful.weed out the good from the great? Once you’ve hired your new salesIf you have a human resources department, person, put them on 90-day is preferable to have them screen your Make a policy of hiring everyone on aresumes first. They are trained to sort 90-day basis so they are motivated to Patricia Gardner is the President ofthrough the applications and ask the hit the ground running. A new trend is Maximum Sales. She can be contactedquestions in a way that will keep you out allowing companies to hire ‘100 percent at 888.886.9402, or by email atof legal trouble. Some things they should commission sales people’, which means, or visitconsider are how quickly the job seeker less risk for you if it doesn’t work out. 14 contact us at
  15. 15. Rev up your holiday sales incentive programs!This holiday season, choose BLOCKBUSTER® Incentives And remember to make BLOCKBUSTER Incentives partto accelerate your sales incentive programs! There’s of your 2004 planning. They’re the fun, flexible andno better way to motivate your sales team than with entertaining gifts all your customers and employeesBLOCKBUSTER Entertainment Cards, Movie Cards or ® will enjoy, redeemable at up to 5,500 participatingBLOCKBUSTER GiftCards. Use them for individual or ® stores nationwide. For more information, visitteam sales rewards, and add excitement to your or call 1-800-876-8439 andholiday gatherings when you give them as party favors. mention Response Code ASM03. BLOCKBUSTER name, design and related marks are trademarks of Blockbuster Inc. © 2003 Blockbuster Inc. All rights reserved.
  16. 16. feature solution MarkByTewart Mark Tewart Eliminate Your PainIf you were to ask one thousand sales to realign your thoughts. The sillier the solutions to the customer’s problems. Trypeople, what major challenges they words, the better they work. Silly gets you using EARS: encourage the customers toface in this business, the majority of the out of the normal or comfortable zones. talk by asking questions, acknowledge theanswers would be: The next time you have an extremely answers by using phrases that let them negative customer, when it’s all over, know you hear them and are positive • It’s hard to get and keep a good realign yourself with positive words. about what they are saying. Try words and attitude. phrases like: I understand; I appreciate • The marketplace is too competitive. Obstacle 2. The marketplace is too what you’re saying, absolutely, sure, • There are too many upside down competitive. If this is your complaint, you bet, respond and repeat - repeat the customers. you must first realize that your keywords and phrases that your customers • It’s too hard to make money. challenge is that you are primarily use to show them you are listening and competing with yourself. By saying bring emotion to the solutions. Then,These complaints are valid and can also the marketplace is too competitive, save the information, so you can reuse itbe signs of an unproductive sales person. you are focusing on the negative throughout the sale.Rather than point fingers or continue with result rather than the solutions.complaints, let’s look at solutions to these To have a competitive edge, it is importantproblems. Try apples to oranges selling. Focus on to use the universal laws of reciprocation what your competitive advantages are. and obligation. Try to give every customer Obstacle 1. Gaining and maintaining What is your specific defining proposition so much extra in every step of the sale that a good attitude. This is very (SDP)? In other words, what makes you they feel they are obligated to you and important. Attitude is what makes unique or the better choice? You must do must reciprocate by giving back to you. up 99 percent of successful living. three things: Tell your story; tell it well; Success is determined by asking tell it often. You can practice reciprocation and successful questions. To create a obligation by doing simple things such good attitude you must ask for it. If If you have many competitors, you must as asking lots of non-financial data you are constantly asking negative give customers specific reasons to choose questions, pulling vehicles out before questions, it will lead to negative you, reasons that relate to the 3Ms: presenting them, wiping the vehicle off answers. Try the following: money, me, machine. Every dealership, before presenting it. Take longer more vehicle and sales person has a unique demonstrative demo drives, practiceStart your day positively – exercise, story. People need stories to make visual silence in the last part of the drive toprayer, positive mental imaging, decisions and gain enough social proof to allow customers the experience theywriting goals, listening to motivational/ feel good about their choice. deserve rather than being asked lotseducational material, listening to comedy of commitment questions and beingmaterial, are all ways to anchor yourself Secondly, all customers need hope for the direction you want to go. What you gain (HFG) and the need to eliminateimpress you express. The more positive fear of making a mistake. The steps in a If you are experiencing the painyou put in, the more comes out. sale are worthless unless you know where of competition, try eliminating the your customer is trying to go. When customer’s fear of making a mistake. DoRemember, there are going to be negative moving through the steps to the sale, the following: re-demo every customerpeople or occurrences that seem to reoccur practice an emotional and psychological who is not buying. Bring them fromin your life, you must have a game plan to road to the sale as well. You must ask their head to their heart. Next, use theeliminate or minimize them. Try using tons of questions to understand what the lost keys close: “Imagine that you wentanchoring words: predetermined words customer is feeling and thinking. Try to your vehicle in your garage and thenor phrases to immediately bring you to a using a mindset of think like a customer couldn’t find your keys. You go back intopositive state of mind. Showtime, whew- (TLC). Stop being just another sales your house and then after you search forhew, bummer, next, are all examples of person trying to sell something to make a a while, you find your keys. Now thatsilly words and phrases that you can use commission, and start bringing emotional you found your keys, how long would 16
  17. 17. “The ideas we’ve mentioned so far can help you to sellmore vehicles and to make more gross profit.”you keep looking for your keys? Mr. understand payoffs better and prompts work, remember the most important wordCustomer, after you find what you are them to put more cash investment toward in sales, ‘next’.looking for, you no longer have to look. the purchase, because they feel like theyBased upon what you have told me, you are putting cash down toward their payoff Obstacle 4. It is too hard to makehave found what you are looking for.” rather than the purchase. money. There is only four ways to increase the bottom line of anyAlso, it is important to reassure people. Next, take every payment you show a business: sell more products orUse the mistake close. Tell every customer customer and split each payment in two services, make more gross/net profitthat is hesitating, that based upon the parts – one part showing how much they per sale, sell more add-on or ancillaryvehicle they are buying, the value they are paying based upon the difference items, and retain your customer baseare getting and what you have seen others and one part showing how much they and turn them into repeat sales morecustomers do, that you can assure them are paying based upon their payoff. often.that they are not making a mistake. This technique helps people understand payoffs better and gives you leverage if The ideas that we’ve mentioned so farNext, never let a customer leave without they think the payment is too high. After can help you to sell more vehicles and toutilizing the practice of walking the you have shown the customer payments make more gross profit. Next, you havewheel. Go through every possibility in this proactive manner, you can now to think of any additional items that canwith your manager. New to used, new to show the customer the difference between add value to the customer that you can selldemo, longer or shorter term, cash back, the new payment and their old one and through your dealership. The last item isdifferent trade, no trade, etc. how it is influenced by their payoff, more the most important item of all, retention of expensive purchase, etc. customer base and quicker turn rate. When Obstacle 3. Negative equity you accomplish item number four, you customers. One of the biggest Example: automatically will accomplish the other obstacles facing sales people is the $20,000 sale price of new vehicle three. Create and maintain a manual or vast amount of customers who are $10,000 trade in value automated software system for following not only in a negative equity position your customer base and then add value in their trade-ins but are more dollars $10,000 difference on a constant and unobtrusive manner. upside down than ever before. $13,000 payoff Try creating email newsletters, sending coupons created from alliances withTry the following ideas to help ease the $23,000 balance to finance before other businesses, oil change remindersburden of negative equity. Be proactive cash investment postcards, phone calls, the issue. When you sit down to write $460 a month for 48 months withup a proposal, ask the customer how they zero cash investment Let your brain create the questions thatwould like you to handle their payoff. You $460 a month = can explode your sales exponentially andmust remember that you are responsible ($200 difference payment / $260 create significant profit them, but not for them. It’s their payoff, payoff payment)not yours. Tell them that customers handle All sales people face certain challenges.their payoff in different manners and that If their current payment is $375 / It does no good to complain about why you are asking how they want $460-$375 = $85 – difference in Only one thing can create opportunitiesit done. Some customers pay off their price from new vehicle to current, from obstacles: education. Educationwhole balance, some customers want to gas savings, warranty/maintenance is never ending. Training is temporary;put a certain amount of cash investment savings. education creates an ongoing solution todown and some customers don’t put any any investment toward their payoff. You can’t prevent people from being in Mark Tewart is the President of TewartObviously the more they put down, the negative equity; you can only give them Enterprises. He can be contactedless their balance and potential payments different and better solutions by asking at 866.429.6844, or by email atwill be. This helps the customers different and better questions. If it doesn’t 2003 17