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  1. 1. View this month’s and previous issues online at .bizNovember 2004756 South 1st Street PRSRT STDSuite 202 US POSTAGELouisville, KY 40202 PAID LOUISVILLE KY PERMIT NO 879a division of Systems Marketing, Inc.
  2. 2. 58 Cars Sold Last Month with Dealix LeadsMagnussen’s Dodge Chrysler JeepMagnussen’s Dodge Chrysler Jeep Quality Leads | Superior Service | Dealer Control Features “That’s why I get my leads from Dealix. When it comes to selling to Internet customers, my team goes beyond our immediate market area. In fact, we pull customers in from as far as San Francisco. With Dealix, we can get leads from a wide mile radius, or we can target specific Zip codes. The choice is ours. No other lead provider gives us this level of control and this many sales.” Steve Jackson, Internet Fleet Manager, Magnussen’s Dodge Chrysler, Jeep of Auburn, CA Dealer Control Features Dealix AutoUSA Autobytel SM Territory Control Standard N/S N/S Choose multiple Zip Codes for each franchise. Territory ControlSM Target your ideal sales territory – choose any Standard N/S N/S mile radius. Inventory-Driven Lead ControlSM Standard N/S N/S Choose leads for the models you want to sell. N/S = Not Standard July 2004 Sales Start selling more cars today! Call Dealix now. (866) 253-5125 or visit us online at
  3. 3. The Industry’s Education at Your Fingertips 24/7 online television/radio programming featuring:EDUCATIONAL PROGRAMMING NEWSM “How To Sell A Car And Keep It Sold Part 1 - Noncompliant M “Driving Business” (Monthly Industry News With Michael Paperwork: The Greatest Area of Legal Exposure in a York) Featuring Debbie Conrad-Beddingfield, National Dealership” Director Of Dealer Sales for Manheim And Tom WebbM “How To Sell A Car And Keep It Sold Part 2 - Chief Economist For Manheim Commencing the Customer Relationship” M “Legal, Legislative, Regulatory Review” (MonthlyM “IRS Bank Secrecy Act and Form 8300” Legal/Regulatory Review with Keith Whann)M “Vehicle Remarketing: Auctions and the Dealer” M “The Power of Association” (Monthly Association News Update with Michael Linn)M “Introduction to Standardized Dealer Accounting” M “Fuel For Thought” (Monthly Dealership OperationsM “Standardized Dealer Accounting Part 1 - Standardized Insight with D.J. Harrington) Accounting and the Financial Statement”M “Information Technologies and the Auto Dealer” INDUSTRY SPOTLIGHTM “The Garage Liability Insurance Crisis” M ADESA Vehicle Donation CeremonyM “How To Attract Lenders To Your Dealership” M 2004 Expo Vendor HighlightsM “Incoming Call Part 1 - Putting More Fun Back Into Your M 2004 NIADA Convention Highlights: Business (What the Receptionist Should Be Saying)” Behind the ScenesM “How to Best Serve the Hispanic Customer” M NIADA At The Columbus Fair Auto AuctionM “Complying With The FTC Used Car Rule” M 2004 NABD HighlightsM “How to Establish and Operate a Related M Dealer Education Opportunities Finance Company”M “Steps to a Motor Vehicle Sale: A Review of the Forms Involved in a Motor Vehicle Transaction” andM Certified Master Dealer (CMD) Program Preview muchSPECIAL FEATURES more!M 2004 NIADA Leadership AwardsM 2004 NIADA Quality Dealer AwardsM Legal, Legislative and Regulatory Affairs Open ForumM Being UncommonM Discover From WithinM Manheim Drive Center Available now to dealers, industry executives and vendors nationwide. F o r m o r e i n f o r m a t i o n , s t a y t u n e d t o W W W. N I A D A .TV o r ca l l 8 0 0 . 6 8 2 .3 83 7.
  4. 4. I N S I D E 8 Sales People, Your Customer Has Rights Zig Ziglar 9 Phone Dynamics Mark Tewart10 Get Paid Like a Professional Anthony Hall12 Prestige Ford Leverages 86 Percent in Leads to Generate 62 Percent Increase in Sales Volume Bobby Malatia13 Cost for Non-Compliance Fran McAllister14 Good Morning Mr. President Michael York16 What Does Delivery Mean to Your Dealership? James E. Yerage20 How to Recognize Old Selling Techniques So You Can Practice the New Brian Tracy21 Critical Success Factors Kirk Manzo22 How to Increase Customer Loyalty and Generate More F&I Income George Jackson23 Build Value and ProÞts Brian Ankney24 Vitality, Self-conÞdence and Maturity Carol Martin26 The Customer Participative Walk Around Jim Adams27 Is Your Marketing Ignoring Half of Your Revenue-Producing Customers David A. Fish28 The 4 Characteristics of a Powerful Communicator Sean WolÞngton Samuel 22: 2-4 He said, “The Lord is my rock, and my fortress, Success Driven Solutions and my deliverer, my God, my rock, in whom I take refuge, my shield and the horn of my salvation,756 South 1st Street, Suite 202 Louisville, Kentucky 40202 my stronghold and my refuge, ! Toll Free: 877.818.6620 " Facsimile: 502.588.3170 my savior; thou savest me from violence.Patrick Luck, Editor & Publisher Courtney Hill• Sales Improvement Strategist I call upon the Lord, who is worthy • to be praised,Susan Goodman, Vice President and I am saved from my enemies.• Amy StuberThomas Williams, Creative Director Sales Improvement Strategist• • astuber05@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$75peryear.AutoSuccesswelcomesunsolicitededitorialsandgraphics(notresponsiblefortheirreturn).Allsubmittededitorialsandgraphicsaresubjecttoeditingforgrammar,content,andpagelength.AutoSuccessprovides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those ofAutoSuccess 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.
  5. 5. Grow or Die …In today’s hostile, competitive environment you’ve got no choice! You can not stay where you are. A COMPLETE SALES, MANAGEMENT, MARKETING, AND STATE OF THE ART CRM STRATEGY This Man Means Business! ® Ziegler Supersystems is a complete marketing strategy for all dealerships no matter what the size. James A.Ziegler, CSP To do business in todays hostile environment... you must be prepared to take that business away from a competitor who is planning to take it away from you! SALES MANAGER FORUM: Motivating your Sales Team to Higher Profitability Taught By James A. Ziegler Atlanta, GA . . . . . . . . .Nov. 16 - 17, 2004 Atlanta, GA . . . . . . . . .Dec. 16 - 17, 2004 Atlanta, GA . . . . . . . . .Jan. 11 - 12, 2005 Atlanta, GA . . . . . . . . .Feb. 15 - 16, 2005 THE COMPLETE F&I MENU SELLING Present 100% of your products 100% of the time! Taught By Mike Lee Sponsored By James A. Ziegler Atlanta, GA . . . . . . . . .Nov. 9 - 11, 2004 Las Vegas, NV . . . . . . .Dec. 7 - 9, 2004 Atlanta, GA . . . . . . . . .Jan. 18 - 20, 2005 Charlotte, NC . . . . . . . .Feb. 15 - 17, 2005 Dates and locations subject to change Ziegler Supersystems • • 800-726-0510 Call today to speak to a Ziegler Representative In-Store Consulting - Management Seminars - Video Sales Training - Support Products
  6. 6. profit solution ADVERTISEMENT scott Scott Joseph By joseph Amazing marketing “tool” helps Dealers and General Managers who use direct mail increase their net profits 30% to 100%! Are your direct gives you huge marketing advantages But J&L can, and J&L does. Our statistics mail promotions over all your competitors. tell us that for the last 3.5 million pieces producing of mail delivered, the Response Analysis consistent and Now, you’ve heard the cliché… has helped our dealer clients sell an improving Information is what? Right. Information average of 33 cars for every 10,000results or are they falling short of your is power. If you could look back upon pieces of mail delivered!expectations and declining with each the history of thousands of promotions,promotion? Most dealers who use direct examine the mailing lists, read over the The Response Analysis is the mostmail are still searching for the elusive direct mail letters, track what worked, powerful marketing tool in automotivecombination that produced record- what didn’t, who bought, who didn’t, advertising today. Find out whybreaking results like their Þrst direct mail and why… would this be powerful J&L’s dealership response ratespromotion. information to you? have increased 72% in the last two years. This combined with unequaledThe number one objection we hear when The reality is every direct mail promotion professionalism and customer support isprospecting for new dealer clients is that produces both good and bad results. The why 94% of all J&L customers continuedirect mail doesn’t work anymore. When problem is being able to easily recognize their relationship with us for years.we ask why most dealers say, “My market which is which. That problem is solved!is saturated” or “It only attracts gift Now you can have all the information Just ask them for yourself. Rick Hillmanseekers” or “The people who respond are you need to ensure success at the touch of from Hollingsworth Mazda says, “J&Lnot buyers.” a button. Marketing’s direct mail program is the most cost-efÞcient form of advertisingI agree with all these reasons because Imagine being able to know immediately that I have seen in the thirty years thatif a direct mail promotion is not well which market areas produce results I’ve been in the car business.”thought out from start to Þnish it will not that exceed your expectations and morework. This brings up a question! And the importantly which ones to avoid. Simply Pat Fogerty from Classic Toyota says,question is… asking the computer… “How do we “We have used J&L Marketing for years generate more trafÞc and sell more cars?” because of their continual support andHow can you eliminate all the elements J&L’s proprietary Response Analysis excellent results. This is an invaluableof a promotion that do not give you the System directs us toward those activities service.”return on investment you need and at the that bring success, and away from thosesame time improve on the aspects that that don’t. We reÞne the offers, prices, Billy Gordon from Patrick Chevroletproduce exactly what you want? That’s strategies, locations, and even the days of says, “We have been running with J&Lthe real question isn’t it? If you could the week that bring the highest return. Marketing for four years, and we caninvest advertising dollars only where attribute more sales to them than anyyou see great results and eliminate what Our analysis allows us to produce ever- other form of advertising. J&L is the mostdoesn’t work, how many more cars could increasing levels of success. Since the professional company I’ve worked withyou sell? How much money would you market is a lot smarter than we are, since I began in the car business 18 years ago.”make? we don’t go by hunches, opinions, or gut feelings about how to improve You too can start experiencingI’ve invested a small fortune to develop performance. We rely solely on the consistent results from the mostthe marketing “tool” that will provide numbers to tell us “where to from here.” professional marketing companyyou the information that is necessary right now by contacting my ofÞce atto produce the results you really want How can anyone make recommendations 866.856.6782 and asking for Lisa Wilson.and could quite possibly increase your to you without the validation of facts, Or e-mail her at: lwilson@jandlmarketsales with each promotion from this day statistics and numbers? How can anyone As soon as you contact us weforward. J&L Marketing is the only Þrm implement a growth strategy based will begin to create a growth strategywith this unique capability. It allows us on hunches and guesses, rather than unique to your organization, producingto research and analyze your promotions this powerful analysis program? It’s more proÞt, more volume, and morefrom over 100 different perspectives and obvious…they can’t. satisÞed customers.
  7. 7. sts ms ls fis lr ZigZiglar sales and training solution Sales People, Your Customer Has Rights I am the customer engage our customers in conversation. We Hint: Address any delays or disadvantages and I have my rights. must master the skills of questioning and as early as possible. Our customers have listening. the right to know. I have the right to remain silent. I don’t I have the right to demand that you deliver I have the right not to be taken for granted. have to tell you on your promises. If I put my trust in I have given you my time, my trust and myabout my business. I don’t have to share you, you better do what you say you are money. I’d like something in return. I’d likewith you the reasons I want to visit other going to do in the time frame you said you to be treated fairly. If you want to continuedealerships. I am under no obligation to would do it. If you can’t deliver on your to earn my business you must keep mevolunteer any information to you. Also, promises, I have the right to be notified. informed on changes, improvements, andI can not guess what you need to know. I also have the right to be notified in a upgrades. Not only should you serve myYou have to gather the information that is timely manner. I understand that this is not needs, you must anticipate my needs. Youneeded from me. a perfect world. I know that deadlines and must continue to earn my time, my trust, shipments are missed. I just need to know and my money.Hint: As sales professionals, we must about them as they occur. Hint: After we attain the business, we must work just as hard to maintain the After we attain the business, business. we must work just as hard to Zig Ziglar is the Chairman of the Board of Ziglar Training Systems in Dallas, TX. He maintain the business. can be contacted at 866.873.0026, or by email at 8 subscribe today at
  8. 8. sts ms ls fis lr MarkTewart sales and training solution Phone Dynamics The first step in remark that they will be happy to get a sales advancing the representative for the customer and then productivity of your acquire the customers name by asking “and staff in using the your name is?” The receptionist can then phones is a better list the customers name on the log with the understanding in the date and time received and page for a salesimportance that the telephone can play representative. Now the receptionist canand how it affects your business. Often write their name on the tracking sheet asa lack of the right attitude is displayed well. The sales representative is responsiblein the treatment towards the receptionist for putting remarks of the results on theposition. The receptionist is usually hired log after the sale. The above process canwithout any guidelines that would be used be altered according to the technologyto hire for an important position. In your you have established in your dealership.dealership do you have personality profiles, Managers can now include a review ofset interview questions and guidelines the phone traffic in their daily one on oneto hire an exceptional receptionist? Do coaching have a formalized training processand performance based pay? Often the Sales people must have a formal trackingreceptionist is the lowest paid person in sheet they use when taking calls to assistthe dealership but is often the person who them in remembering the right steps andinfluences the customer first. Why not pay collecting the information necessary. Thethe receptionist a bonus based upon various first step in changing the view of a salescriteria such as average time to answer a person towards the phone is to show themcall, average hold time for a customer etc. how easy it is to pick up several units each month just by having better phone skills.The sales people also need training on the The Internet has increased the numberunderstanding of the importance of both of sale calls and the quality of customerinbound and outbound sales calls and how calling.this can affect their incomes. A sales personcan sit around all day waiting for someone Sales people must be taught new techniques Kids with Juvenileto come in, but they can take incoming that match the marketplace of today. Sales Diabetes need yousales calls and treat them like they are not people have been taught the importance Mary Tyler Mooreimportant. The average dealership will of getting name and number so much so International Chairman to be their herospend a fortune on advertising to get people that they are jeopardizing the appointment now more than ever. We’re so closeto call and come in but not pay attention to and scaring customers away. Gone are the to finding a cure for this devastatingwhat is happening when the customers call days of telling the customer you are out in disease that threatens their sight,or come in. Call a competitor or call your service and not at your desk so you would their hearts, their dreams. We fundown dealership and mystery shop a few like to get their name and number and calltimes and ask yourself if you are impressed them back or that the customer just needs the research that is finding the cure.with the results. to come on down so you can show them Your help brings us that much in person. Customers are looking for ways closer. Won’t you help save the day?Let’s talk about a few things to improve to dismiss you as an option and outdated Call 1.800.533.CURE or visitthe importance of sales performance phone skills will make that happen quickly. utilizing the phone. First of all, thedealership needs a formal call tracking Review the telephone operations in yourprocess. Many dealerships know their floor dealership and take steps to increase thetraffic but not their phone traffic. Why? skills of everyone using the phone. BetterThis sends the wrong message. You must phone process and skills uncover hiddenquantify to qualify, meaning you must wealth.know where you are at to understand whereyou would like to go. Have the receptionist Mark Tewart is the President of Tewartuse a call tracking sheet that they are Enterprises. He can be contactedtrained to use. Example: On an incoming at 866.429.6844, or by email atsales call, the receptionist should positively 2004 9
  9. 9. sts ms ls fis lr AnthonyHall sales and training solution Get Paid Like a Professional As a famous man often good deal. When value meets price, they and put your customer in it! says, “An automobile feel they are getting an okay deal, but when is made up of 15,000 value exceeds price, they feel they are Next, you must know what the hot buttons high-tech component getting a bargain at any price: or motives of the customer are. Who, what, parts: plastic, metal, how, when, where and why. rubber, glass andspace-age materials. These dissimilar parts Once you have this information, you canand assemblies are welded, riveted, stapled, now start to formulate the best way to presentbolted, glued, bonded, and fused together your vehicle based on the customer needsby highly trained human beings. Some of and desires. Every customer is different.these parts are moving at incredible speeds Customize every presentation directed atin excess of 10,000 RPMs, continuously what is important based on the informationrubbing and abrading against each other you have gathered in the common groundwith less then 3/1000ths of an inch of step of the Road to the Sale.clearance and less then 1/1000th of an inchof lubrication in the presence of high levels Steps of the Walk Aroundof heat. Your new car has more than 1000 Step 1 – Front of the car.times the computer memory, making 10,000 Step 2 – Under the hood of the car.times more decisions per second than the Step 3 – Driver we first used to put man on the Step 4 – Back of the vehicle.moon with Apollo 11.” And we present Step 5 – Passenger sidethem like a low-tech pair of shoes, reducing Step 6 – Inside the vehicle.the buying process down to price. Before you can sell value, you must understand and know your product as well The six point walk-around should tell anToo many of us in the automotive industry as your competitors. organized, complete story, which covershave fallen into selling price and not value. all the needs and benefits of your customer.We are negotiating on how low we can get Your dealership has many resources Get all parties involved in the presentation.the price of the vehicle and not on how that will provide you with the needed Don’t ever think just because the truckmuch value and benefits we are providing information such as Source Books, Factory is for the husband that the wife is notto the customer. Videos, DVDs, etc. Other good sources interested. She is the key in making the are Automotive Magazines such as Car buying decision.Value is a measurement of benefits. People & Driver, Road & Track, AutoWeek,accept price and they buy value based on etc. These are excellent resources to Always use F.A.B. in your presentations:the amount of benefits the vehicle provides gather information about you and your (F)eature – What is it?them. The perception of value based on competitor’s products. You can also look (A)dvantage – The Improvement.the knowledge of benefits is flexible. As for and listen to Automotive T.V. & Radio (B)enefit – What it means or does for thevalue increases, the budget of the customer commercials. The words and pictures used customer.increases. When value is lower than price, to describe features and benefits can also bethe customer feels they are not getting a used in your presentations. Paint a picture Example: Feature – Boron steel side door intrusion beam. Advantage – High tensile, high impact resistant steel beam. Up Unit Sales via Referrals! Benefit – Will prevent an excessive amount of intrusion into the passenger compartment Up Service Visits by 13x a person! during 33mph side impacts by the average vehicle and thus possibly eliminating injury Would you like a cost effective way to increase your referrals? to the occupants. Want to dramatically increase service visits you lose to Lube, Mufßer and Tire shops? Also, you should use buzzwords to build more value into your feature. They are Would you be interested in a program that pays for itself not plastic headlamp covers, they are hundreds of times over? AUTO high impact Lexan, the car has Air Cooled Call today for a FREE Sample! ventilated disk brake rotors, aluminum 800.723.2590 alloys, thermal composite intake manifold, sheet molded composite, forged steel, C A S H C A R D S sequential electronic fuel injection, etc. You get the picture! 10 visit us online at
  10. 10. continuedStart at position number one and work more for technology if they understand Present the vehicle like a professional andyour way around the vehicle ending at the how it benefits them personally. Customers get paid like a professional!passenger side or position number six, the buy safety, performance, style, appearance,inside of the car. This way when you are comfort, convenience, economy, durability,presenting the interior features from the and utility. Vehicles offer more today fordrivers seat, you can start the demo ride. less money than at any other time in our history, but we tell less about the value Anthony Hall is a Training ConsultantAs you perform your walk around you must of the vehicle then at any other time in at Ziegler Supersystems. He can beget the customer actively and physically automotive history. What is wrong with contacted at 800.610.9047, or by email atinvolved. Use their senses to build more this picture? and desire. Remember, buyinga vehicle is an emotional experience.This is the best time to maximize youropportunity.Sight, Sound, Touch, Smell, Imagination.Example: Increase Sales by 20% in 10 MinutesTalk about the sound of power fromthe factory tuned exhaust, which willcontribute to the overall performanceand fuel economy due to less restrictiveexhaust gases. The feel of luxury in theinterior with the use of soft touch materials Stay in contact with all upsadding to the comfort of the customer, orhow the controls have their own uniquefeel to facilitate the ease of operations of Receive total data based managementthe cruise control, power windows, airconditioning, or heater, thourgh the factory Daily management reports you can use touse of tactical feel feature using raised orlowered areas on control buttons. The look manage your peopleof the paint quality, panel fit, body lines,the forged aluminum wheels which add FREE FTC “Do Not Call” dailyto the overall style and statement of thecustomers vehicle. The lack of sound when synchronization and alert to help youyou are on the inside of your new vehicle avoid an $11,000 Þnebecause of advanced technology providedthrough quite-steel, more insulation, solidbody structure, thicker glass, better fit and The Koons Automotive Group sold over 44,000 vehicles last year with the helpfinish which provides a more pleasurable of ProResponseownership experience. -Alex Hafer General ManagerImagine how much more comfortable and ProResponse is the only system I have ever used where the sales people arefun your next vacation will be in your new actually motivated to use it. Our new car sales are up 21% in one year.Sport Utility Vehicle. Put your customers -Jeffrey Abel President, Miller Toyotaand their wives and kids by name into thebenefits story. Paint the picture with yourcustomer in the middle of it. Our closing ratio has improved 38% and our “be-backs” have nearly doubled. When we first implemented ProResponse we averaged 160 cars a month, anKnow all about your vehicle and your average month is now 350!competitors. Only use four to five features -Kevin Cohan General Manager, Jim Coleman Cadillac Infiniti Toyotaat each of the six points of the walk RORESPONSEaround.We as professional sales people must havecomplete knowledge and information of thecustomer, our vehicle and our competitors.Professionals learn and practice theirprofessions. Limited Exclusivity. Call us before your competition does!Today’s vehicles have more technology thatbenefits a customers needs than at any othertime in automotive history. People will pay 800.453.8211november 2004 11
  11. 11. sts ms ls fis lr BobbyMalatia marketing solution Prestige Ford Leverages 86 Percent in Leads to Generate 62 Percent Increase in Sales Volume A fast way to lose With the right digital marketing on our new supports the Internet initiative 100 percent market share today is web site we saw an exponential increase which is why we’re able to successfully to turn your back on in quality leads - 86 percent. We focused implement our action plan for driving our the tremendous profit on our ability to respond to each lead and continued growth. opportunity that the convert a high percentage of those leads Internet represents. into sales. We have a strategy for growing For example, our digital marketing systemRoughly 70 percent of our customers today our business and we have support from has the capability to use multi-media bulkare using the Internet to gather information Jerry Reynolds, the Dealer Principle. emails to conduct targeted marketingand if a dealership does not have a presence, Success on the Internet, or in any other area campaigns that can reduce our cost perif you do not set yourselves apart, if you do of the dealership for that matter, hinges sale. We get everyone in the dealership tonot make it fun and easy for customers to on the level of support you get from your gather email addresses and collect accurateget what they’re looking for, someone will. dealer. At Prestige Ford, Jerry Reynolds information from our customers because we would be faced with the challenge of “garbage in garbage out.” We review We know that in order to turn reports to determine who is using the system and who is not. With support from leads into appointments and our dealer and accurate reporting, we’re able to hold ourselves accountable. appointments into sales we have to respond to the customer Leveraging increased leads to sell more cars is easier when you’re able to track, immediately... measure and fine tune your process and remove any obstacles that could result in wasted opportunities. To ensure we’re making the right adjustments, we use reports to view our incoming lead response Our Dealers ratio, leads to showroom appointment ratio JW96HRSS sold and showroom traffic and closing ratio. 45% of our used are having We can use this information for coaching car inventory in purposes and to determine if and when we one weekend. need to make adjustments to our staffing so $100,000+ - MD GM Dealer that our response time and quality of the response does not suffer as the volume of With JW96HRSS Weekends leads continues to escalate. We know that we buy the right in order to turn leads into appointments and cars and they sell appointments into sales we have to respond them at $3833 to the customer immediately and we have How was your weekend? per copy. be able to answer their questions in a way - FL Dealer that is consistently professional and tailored Ask about our $100,000 to how the customers want to buy. The “Guaranteed” weekend! I used JW96HRSS automation included in our system allows 6 years ago, and us to handle more leads per person than we they are still the did before, but eventually we will reach a Eliminate half of your used-car best today! saturation point and our reports will make it inventory in just one weekend. easier to determine where that point is. - NJ Dealer Jeff Weaver’s Offsite Events: With the right technology, a strategy and 96 Hour Super Sale Inc. Race Tracks action plan to hit our targets, support from our dealer principle and the people and Sports Stadiums process to turn our vision into reality, we Shopping Malls are on track to sell 100 additional units per Call Today to Performance month with the goal of being one of the top reserve your next five Ford dealers. Can you make money on Compensated the Internet? You bet you can! sales event! Lowest Bobby Malatia is the Internet Director at Commission 800.723.2608 BEST RESULTS! Prestige Ford. He can be contacted at 800.864.8361, or by email at 12
  12. 12. sts ms ls fis lr FranMcAllister leadership solution Cost for Non-Compliance Compliance and Displayed FTC Buyer’s Guide $250 - $13,000/per documentation issues for every vehicle on your lot. Y/N affect every industry. The following is a Displaying Spanish buyers guides when $13,000/per partial checklist for transacting business in Spanish Y/N automobile dealers of Transferring title ownership within $1,000/perrules, laws, and regulations related to theautomotive industry. Your business could 30 days of transaction. Y/Nbe in jeopardy if you are not in compliance Distributing GLB Privacy $11,000with even one of these requirements. Notices to your customers Y/NAnswer Yes or No for each of the followingchecklist items to make sure you are in Mailing GLB Annual notices to every $11,000compliance. customer whose account is still open Y/N Checking the SDN Blocked Persons List on $50,000 - $10 MillionInformation regarding Executive Order every customer you do business with + Jail Y/N13224 is available through the U.S.Treasury Department. Visit their website at Filing IRS/FinCEN 8300 $25,000 - $500, Cash Reporting Form + Jail Y/N Developing internal policies for complying $25,000 - $500,000Fran McAllister is the Vice President of with Anti-Money Laundering requirements + Jail Y/NSales at Integra Systems. She can be Complying with the Federal $11,000 & Upcontacted at 800.668.3107, or by email at Anti-telemarketing “Do Not Call” laws Y/ 2004 13
  13. 13. sts ms ls fis lr MichaelYork sales and training solution Good Morning Mr. President Have you ever President? (or a customer, any individual…), not only wondered what it do you NOT answer your cell phone when feels like to hear The good news is that history gives us a it rings or buzzes, but you aren’t even those words? To be glimpse into how presidents do it. wearing it! It’s PROTOCOL! It simply isn’t “Mr./Ms. President.” done in presidential circles. Consider this:Then look in the mirror and give yourself a There are certain clues to the success And when you’re meeting with Thepresidential greeting! Because you are the of The President. And there are certain President, and you allow that time to beperson in charge when it comes to your life! questions you have to ask if you’re interrupted by a cell phone call from theAnd when it comes to your business or your becoming president. And yes, there are office, or your spouse, or who knowsteam, you’ve got to make some changes in even CERTAIN PEOPLE you surround whom… you have sent the absolute wrongyour day-to-day practices if you’re going to yourself with to ask those questions. message to your presidential audience—truly be THE PRESIDENT! 2. Who’s on your board of Presidential Which is exactly what you do to yourThe office of The President is synonymous Advisors? Ever hear of a President without customer or prospect or assistant orwith respect, leadership, duty, diligence, a cabinet of advisors? Going at it alone, whomever happens to be in front of you atmaking the best decisions and taking the without the input and ideas and counsel the moment (the moment you’ve now toldbest actions that will most positively affect of a trusted inner circle? So who’s in your them that you ARE NOT committed to),not just one individual, but the whole. Yet cabinet? Who’s providing you with their when you allow interruptions or distractionshow often do we disrespect ourselves or “intellectual resources?” Who are YOUR to take priority over them.others, in the way we carry out our day- presidential advisors helping you with theto-day duties? Regardless of what you decisions and direction of your life and Sound a bit harsh? WAKE UP! Cell phonesmay now think, you are the one who will your business? have made YOU the most important personchoose to make the “presidential” decisions in the world, and told EVERYONE elsefor today and the future that will fail or 3. How’s your Presidential PROTOCOL? that “THEY DON’T MATTER!” At least atsucceed…or you will choose to allow As a president, there are certain things this moment, they’re not as important as thesomeone else to make them for you. you MUST do…and certain things you unknown caller on the line! Unbelievable, CANNOT do! First, how’s your ability to yet true.That’s how it is when you’re The have a “presidential” focus? On the reallyPresident. tough issues that are right now, at this It’s like trading whatever valuable thing you very moment in the spotlight of the media have in front of you for what’s behind doorMaybe you really are a “President,” or (marketplace), or the voters (customers), number three! It’s rude, unprofessional, and“CEO,” or “VP,” or even a supervisor or the country (organization) or your very UN-presidential! You can let modernor manager. And even if you’re not, try constituents (workers)? technology capture a message for youthinking like you’re the President of which you can return in a matter of minutes,“YourLife, Inc.” (Which of course, you You can’t afford to be easily distracted if it’s really that important. Believe it orare!) Are you conducting yourself and your when every minute counts…when an not, once upon a time the economy couldbusiness affairs in a presidential manner? entire country (or company) is anxiously actually keep rolling along and the circle ofHow are YOU preparing to LEAD? Let’s awaiting your decision. Wonder what the life continued…even when you couldn’t behave a look. President will do about “this thing?” reached for 30 minutes or three hours on a cell phone!1. The President is The Leader! That means WITHOUT DISTRACTION!He or She will set the tone for how things Been there lately? (Been there ever?) Turn it off, or better yet leave it in the car,get done, or don’t. Mr./Ms. President and send the message that the person you’recan usually be counted on to be tackling Here’s a “presidential clue” on the subject meeting with right now, and their time withthe tough issues, weighing and then of distractions…Mr. President does not you, is the most important thing you have tomaking difficult decisions, or maybe carry a beeper or cell phone. Hmmmm… do at this moment in time.communicating and negotiating with others could it be? That someone of this stature(is that how it works at your place?)…there and importance isn’t wirelessly connected One of my greatest frustrations is to beare many demands and urgent requests at to anyone and everyone at every given talking on the phone with my mom, sister,this level. minute of the day! or a friend, and have them interrupt me right in mid-sentence with “Uh-oh! HoldImagine for a moment what five minutes And the answer is, certainly not. The on, I’m getting another call…” and bang,with THE PRESIDENT is valued at! What President has a trusted someone to deliver they’re gone. Throwing me overboard forwould it be worth to you? What would it any urgent message while he “COMMITS a phone call that could be from someonecost everyone else for The President to give TO THE MOMENT!” What does it mean they don’t even know (often a telemarketer,up five minutes on things that were really to commit to the moment? or worse!). On numerous occasions I’venot all that important? How would you even been cut off! And in trying to calluse your time and energy and influence if It means that when you’re engaged in ayou only had 24 hours in a day to be The meeting with the leader of the free world continued on page 30 14 subscribe today at
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  15. 15. sts ms ls fis lr BrianTracy sales and training solution How to Recognize Old Selling Techniques So You Can Practice the New The old model of percent of the sales process, was presenting. for any reason trust has not been thoroughly selling is no longer The purpose of the presentation was to show established at the outset, the sales effective but it is the features of the product or service and the presentation begins moving out onto thin essential that you benefits that the prospect would enjoy as a ice with the very real possibility that it will understand it. result of purchasing. Often, sales people fall apart. Customers today are bombarded were taught to use clever, manipulative by so much conflicting information and soThe old model of selling divided the sale phrases and techniques to weaken sales many competitive claims, which they caninto roughly four parts. Like a triangle resistance and build a propensity or desire not sort out on their own, the element ofdivided with horizontal lines into four to buy. They were taught to raise or lower trust becomes the indispensable ingredientsections. their voices, shift their bodies, and ask in all sales decisions. leading questions that the prospect wouldThe first part of the sale, the tip, represented have to answer in a certain way. The second part of the new model, 3010 percent of the total sales transaction. This percent of the process, is the identificationpart consisted of approaching and getting The fourth part of the sale in the old model of the real wants and needs of the prospectthe attention of the prospect. Usually, this of selling was the close. This was 40 percent relative to the product or service offering. Itwas accomplished with a bold statement or of the traditional. Countless books, articles is based on asking well-prepared questionsa strong question. When I was just learning and seminars are devoted to the subject of and listening carefully to the answers. Ithow to sell, it was called “pre-occupation closing, to the various ways of extracting a requires reading between the lines andbreaking.” It was likened to the process commitment from a reluctant or indecisive feeding back the prospect’s words andof hitting a donkey between the eyes with prospect. concerns to check for understanding. Onlya two-by-four to get its attention. Only as then do you reach the point where it is clearsales people, we did it with words. Don’t you slip into the old model of selling that the prospect has a clearly definable — no matter what you’ve been taught. need that can be satisfied in a cost-effectiveIn the old model, we were taught to, “get way by what you are selling.right down to business.” Don’t waste Welcome to the New Model of Selling.time. Don’t bother the prospect with small This is the most significant and meaningful The third part of the sales presentationtalk. Ask about the weather or the latest transformation of basic selling techniques in the new model, representing only 20football game or the wife and kids and then that have ever taken place, and the mastery percent of the entire process, is presenting.immediately launch into the sale. of this new model is your key to outstanding The presentation part of the sales process is sales performance for the indefinite future. relatively simple when the first two partsThe second part of the old model, 20 percent of the new model have been thoroughlyof the total sales conversation, was the In the new model, which can be linked to an covered. In the presentation, the salesqualification phase. In this phase we were upside down triangle, there are four parts of person shows the prospect how his/herinstructed to use a variety of techniques to the selling process. The four steps are the wants and needs can be ideally satisfied bydetermine whether or not the prospect had process by which all top sales people sell the product or service offering.the money before you wasted your time a presentation. We were told, “Don’t The final part of the new model of sellingwaste time on a person if they don’t make The first part of the new model, fully 40 is gaining conformation and commitmentit clear that they can part with the money percent of the sales process, is building trust. to action. In gaining a commitment to takewhen you come to the close.” The level of trust between the prospect and action, the sales person asks such questions the sales person is the ingredient that makes as, “Does this make sense to you so far?”The third part of the old model, taking up 30 all the rest of the sales process possible. If Or, “Is this what you had in mind?” He/she checks and double checks to make sure that what he/she is selling and what the customer This is the most signiÞcant and wants are the same. meaningful transformation of So, out with the old and in with the new. basic selling techniques that have Customers have changed and sales practices must change also. ever taken place, and the mastery of this new model is your key to outstanding sales performance for Brian Tracy is the Chairman & CEO of the indeÞnite future. Brian Tracy International. He can be contacted at 866.300.9881, or by email at 20 successful solutions at
  16. 16. sts ms ls fis lr KirkManzo sales and training solution Critical Success Factors There is a foundation mention increase the likelihood a used car for achieving and will actually start when you need it to! maintaining sales success. Do your sales people watch programs like Motor-Week on PBS and/or the Speed The routines and Channel? Does ESPN the Magazine appearhabits we develop will dictate who we are on their coffee tables at home or Car &and what we will become. Sales people Driver, Road &Track, Consumer Reports?must focus on the fundamentals of their After all, who is reading these publications,craft, attitude, product knowledge, and that’s right your customers. Be informed onsales skills. Let’s begin with attitude. what your customers read.How many times have you witnessed a The last critical success factor is sales skills, we’re this close to a curerookie sales person come onto the sales the core competency of what we all do. Afloor and sell 10-12-15+ units their first breakdown of some components under thismonth? All of us have. So why was this category would be as follows: Prospecting,person successful? Clearly it was not their Follow-up, Presentation Skills, Listeningwealth of product knowledge, or their razor Skills, Questioning Skills, Note Takingsharp selling and negotiation skills. Rather Abilities, Answering Objections, Paintingit was the enthusiasm they transferred to the Mental Pictures, Negotiation Skills, andbuyer that propelled them to success. so on.Ask yourself this question, All sales people need to work on each of the above areas to develop the skills of their“Prior to arriving at the dealership, What trade.did I do this morning to prepare to sell carstoday?” When was the last time any of your sales people attended a seminar or workshop onSales and sports are often compared, and selling not sponsored by the dealership?with good reason. Athletes must prepare That means they paid for the program. Ifbefore each game, baseball players take your sales people want to be paid like abatting practice everyday. Goalies have professional, they will need to do what Juvenile Diabetestheir teammates take shots on goal to help all professionals are required to do tothem get into a rhythm prior to the game. maintain their credentials, attend continuing affects millions Mary Tyler MooreWhat are your sales people doing before education. International Chairman and causes long-they start each morning? term complications like blindness If it says, sales on their business card, what and kidney failure. Not to mentionInvest a few minutes each morning by have they done this week, month or year tolistening to some audiotapes or CD’s on the make sure they will be better prepared for pain and worry no kid should havedrive to the dealership. Read something to the next sales opportunity? to live with. But we’re closer thanget your mind right. ever to a cure. Your help makes Encourage your sales team to work at life-saving research possible. CallWhile attitude is important, without product least 20 minutes daily on each of theseknowledge, a sales person will struggle to three critical success factors. In one year 1.800.533.CURE or visitestablish credibility with their customer. that would equal six weeks of additional more competent and prepared your training. As a result, not only would theysales person appears, the easier it will be become better in sales, but also betterto make a significant impression on their husbands/wives, parents and friends tonext guest. those around them.Each morning your sales people can walk Just try it, you’ve got nothing to lose.the entire inventory and select a different carfrom your inventory to drive insuring theyspend time with all of the products available Kirk Manzo is the General Managerboth new & used. Would they pick up some at Ziegler Supersystems. He can beproduct knowledge by just needing to adjust contacted at 800.610.9047, or by email atthe seats and mirrors? Probably, not to 2004 21
  17. 17. sts ms ls fis lr GeorgeJackson f&i solution How to Increase Customer Loyalty and Generate More F&I Income Every time a business that every customer gets offered every what it costs and how to use it. This is manager is with a product, every time, but it cannot control accomplished by doing a thorough contract customer, he/she is what is said throughout the presentation disclosure. Most people remember two expected to be the or during the negotiation after the menu things about a person, the first impression person who knows is presented. Dealerships have started and the last impression. A bad delivery ofand understands the products, how they recording F&I transactions. It’s a great the paperwork and specifically the contractspecifically benefit the customer and why tool for compliance, training, consistency will result in a poor last impression. All ofthe customer would want to enroll in them. and accountability. Burning a CD is quick, the positive things done to this point mayHe/she is expected to be an expert. The only simple and allows for easy storage. If you still lead to a poor CSI survey and statisticsway to ensure that your business manager are in a dealership with multiple business show that this is an area of concern forcan meet these high expectations is with managers and multiple locations, it will many customers. Disclose the contractongoing education and training. Enroll your also ensure a consistent presentation from fully and legally and thoroughly reviewbusiness managers in training repeatedly customer to customer, manager to manager, the itemization of the amount to financeand require your business manager to and dealership to dealership and provide section and truth-in-lending boxes. Whenreview the materials regularly. the dealership with a high level of legal reviewing the product forms, make sure the protection. customer knows what responsibilities he/All sales professionals must constantly she may have to keep the coverage in force,improve the quality of their presentation. Before customers leave the business office, such as maintenance for a service contract.The menu presentation can make sure they should know what they bought, Always invite the customer to read the form, ask questions and let him/her know you are available at any time to address concerns and give the customer your business card. Never hurry through a delivery process. Be different. Be better. The customer will notice and remember; that will create a positive lasting impression. A business manager needs to be the person/ department that works with the customer on claims, particularly with credit insurance and GAP. There is no better way to develop product knowledge, product confidence and awareness of how customers benefit specifically from the coverage than to be involved in the claims process themselves. This will generate more revenue and improve your CSI almost instantly and this level of service will enhance your repeat and referral business. George Jackson is the Director of F&I Training for American Financial & Automotive Services, Inc. He can be contacted at 866.280.0301, or by email at 22 successful solutions at
  18. 18. sts ms ls fis lr BrianAnkney sales and training solution Build Value and ProÞts How can you build in yourself and your abilities to comfortably enough value for sell them their next car. your customers to feel good about buying at As you pull the unit up to the glass where fair gross profits? the customer can see, pop the hood. Now escort your customer out to the car andAdding value starts with the meet and greet. introduce it like a commercial. “This isThe meet and greet starts with the sales the 2004 Chevy Malibu. Winner of prizesperson’s attitude. Your sales people need or accolades that matter to this customer.”to be able to smile at themselves before Now walk first down the driver’s sidethey give a customer a convincing smile. and point out features that your customerThe sales person should be confident and told you mattered during step two. Touchfriendly. Customers buy cars from people the car. Get your customer to touch thethey like. The sales person should ask the car. Move around the back selling thecustomer if this is their first time visiting solution that this vehicle will provide tothe dealership, how they heard about the this customer’s needs. Now make your waystore and invite them inside the dealership. to the front, and open the hood. Only sellDon’t be afraid to hear, “I’m just shopping what the customer asked you to sell duringor looking.” Just answer with something the qualifying step. Identify customers thatexciting like, “Great, my name is Brian don’t understand engines and didn’t comeAnkney, and I’ll be your guide. Follow me to your store for an education. Mentionand I’ll show you some of my favorite cars the noticeably improved performance andto look at.” Remember, the customer does guide the customer back to the passengerneed you to look at cars. Make looking at side of the car. Open the door and havecars more fun with you around. Selling them sit to experience the comfort andyourself as the person your customer is inspired design. Close the door. Getcomfortable buying from often takes some into the driver’s seat and drive away.goofing around. Now lead them inside andstart step two, qualifying. Don’t forget, your customers look to you as their guide through the car buyingThe two main objectives of the qualifying experience. Your attitude when you greetprocess are information collection and them will set the tone of the entire sale.broadening the range of vehicles that willfulfill the customer’s needs. It is important New software packages offer the abilityto collect as much information as possible to track the sales process by team andat this point. You want name, address, individual sales person. This informationphone and email for future correspondence. when coupled with closing percentagesLearn as much as possible about what this and gross profits can yield fantastic reports.person likes and dislikes about the car they These reports can be used as a tool to guidehave now and what they want in their next managers to improve every sales person. Avehicle. Try to think in terms of needs CRM / showroom traffic control system canfulfillment instead of option packages help measure and improve a sales process,and features. This will allow for a car in but will never replace regularly conductedstock to be perfect for this customer. Make training.mental notes about what will influence theirbuying decision this time. The information Next month, we will continue through thecollected during the qualifying step is used demo drive, trial close, service walk andduring the walk around to build value. Once first have a unit in mind tell your customer,“This is a busy place. I sure wouldn’t wantto lose you in all this excitement. Sit tight,while I pull around your new car.” Always, Brian Ankney from AutoClick can bewith every statement, assume your sale. contacted at 866.247.9587, or by email atYour customer needs you to feel confident 2004 23
  19. 19. sts ms ls fis lr CarolMartin leadership solution Vitality, Self-conÞdence and Maturity In the August Vitality can be likened to the charge in a overlook. Train your interviewers to note edition, I wrote of battery. And like the charge in a battery, a candidate’s clear eye contact, simple the importance of the it can burn bright initially and then fade. and direct answers to questions (especially work environment to This means a person applying for a job, job and experience-related questions) and employee retention especially if “pumped” by the demands lessened stress with the entire selection and success. The of the application and the interviewing process.size, age and location (urban or rural) process, can appear to be a live wire.of a dealership are often critical to an How is it then, that once hired, the person Maturity is to be expected of all adults.employee’s comfort level and therefore doesn’t seem able to process information Immaturity is expensive. Those individualssuccess, they are not the only determining effectively? Or runs out of steam and who are not mature, often have extensivefactors. The personality of the manager spends the final two or three hours of the experience with the interview process,can also be a make-or-break component shift being counter-productive. Has that and they have usually learned not to actof an employee’s ability to thrive. The sparky candidate who showed impressive immaturely during the interview.challenges are accurately identifying promise during the interview become dullrelevant environmental issues and or dim, or was he or she dull all along and We can understand maturity in a dealershipresponding effectively to them. Perhaps the we just didn’t notice it? context if we think of how an immaturefirst challenge is the more important of the worker behaves. Of the many counter-two, because once environmental issues are Staying power is affected by stress in that productive immature behaviors, the moreidentified, there is hope of responding to stress can give a temporary adrenaline prevalent and obvious ones are beingthem effectively. fix, but it doesn’t last. You might check driven by unrealistic goals or timetables, vitality by orchestrating a demanding misplaced (smart-aleck) humor or big-shotUse obvious behavior items because it interview process. If you involve two or talk or actions.can be helpful to verify traits such as three interviewers who ask, among otherinitiative, persistence and willingness to things, tough questions that demand Why is it that during the interview, we arefollow instructions through behavioral quick thoughtful answers, the low vitality more influenced by product knowledgeinterviewing or profiling. The fact that we candidate will begin to reveal himself or or enthusiasm than critical clues toare facing a candidate who responded to herself on the second or third interview. immaturity? Why is it we miss the essentiala “sales help wanted” ad and has 12 years importance of a candidate blaming his orof experience selling vehicles is useful Finally, even though we know of no her availability on an overly-demandinginformation. While noting the candidate’s definitive studies on the subject, there are boss or unfair performance expectations?gestures, answers to our career questions some who believe there is a correlation Dig deeper and ask what it was aboutand product knowledge, plus signals between vitality and general robustness. that supervisor that made him or her sosuch as pace of speech and expression This can be an important economic overly demanding? Similarly, when askedof vision, we can safely conclude that a consideration when hiring people paid in about the future, make careful note of thecandidate matches (or doesn’t match) our any manner other than commission based immaturity reflected in a response such asexpectations for a sales or an after-market on actual performance. “I want your job (or to be president) in threeposition (given decent references). years?” Self-confidence is important whether youVitality, self-confidence and maturity are are hiring a counter manager or an F&I Immature people simply don’t last.some behaviors that are more difficult manager. It has less to do with personalityto uncover during an interview; there than it does with character development Just as a profile objectively verifies theare others that are very easy to fake. and comfort with one’s own personality behaviors we think we are seeing in theEnvironmental incompatibility -- that is, whatever that might be. The business issue interview, so also should a behaviorala basic incompatibility with the realities here is that the self-confident person is profile worth its salt give essential insightof a workplace (including supervisor less likely to exhibit varying patterns of and hopefully verification of vitality, self-personality and the presence or absence of a behavior, or better said, he/she is more apt confidence and maturity.system of management with accountability) to be consistent in his/her behavior. Thisis the single greatest cause of turnover. suggests that the person who comes across as a certain type with self-confidence duringThe second greatest cause of failure in the interview process is more likely to showthe work environment is not the basic that same behavior a week, month or yearspersonality required to perform effectively after beginning employment.on the job. It is, rather, those elements of Carol Martin is a Senior Consultantbehavior that are both difficult to see and Self-confidence is more easily recognized with The Omnia Group. She can beeasy to fake: vitality, self-confidence and and harder to fake than vitality or maturity, contacted at 800.601.3216, or by email atmaturity. but it is something we often forget or 24 successful solutions at