AutoSuccess Oct09


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AutoSuccess addresses the specific, researched needs of new car and light truck dealerships by providing entrepreneurial, cutting-edge, solution-based editorials to increase dealership profits and reduce expenses

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AutoSuccess Oct09

  1. 1. Check out our New Classified Section on page 37 October 2009
  2. 2. ✓ HIGH NET WORTH✓ PROVEN TRACK RECORD OF BUSINESS SUCCESS COMFORTABLE ASSOCIATING WITH TYPE-A PERSONALITIES DO YOU HAVE WHAT WE’RE LOOKING FOR? “I was particularly impressed by how much money can be made from an individual store.” – Vince Keller, J.D.Byrider Dealer The J.D. Byrider franchise model is a winner, proven from coast to coast. And, with that national brand name comes a prominent national face to al endorse it: Champion Race Driver, Tony Stewart. We’re committed to helping our franchise partners succeed. If yo you’re ou’re the right individual, you could be in for the ride of your life. For more information go to or call 800-947-4532. “Losing sucks. Go with a winner.” – Tony Stewart, NASCAR Sprint Cup Champ & J.D. Byrider Team Owner/Driver
  3. 3. feature solution 3834 Taylorsville Rd. Building A, Ste. 1B Louisville Kentucky 40220 | 877.818.6620 / 502.588.3170 | / | Susan Givens, PublisherOctober 2009 By TimJames Have you ever felt like you were mak- My name is Mark Tewart and I am the • Make an extra $100,000 or more in ing little mistakes that are costing you President of Tewart Enterprises Inc. For your service pro ts in 90 days or less Thomas Williams, VP & Creative Director tons of money at your dealership? Do almost two decades I have been helping • Double and even triple your sales you feel like there are hidden pro ts dealers nd hidden pro ts and correct- and service customer retention in your dealership that are just waiting ing little mistakes that were costing • Double your appointments and to be uncovered? If you are like most those dealers hundreds of thousands of sales conversion from Internet leads, leadership solution Ken dealers, the honest answer is, YES, dollars. These almost-magical solutions Web site leads, third party leads 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220. whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling magazine to which this magazine may be linked from time to time. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content and page length. AutoSuccess provides its contributing writers latitude in expressing advice AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or Subscription rate is $69 Absolutely! paul cummings THE POWER OF COMPLETED STAFF WORK turn little mistakes • Increase your StephenR.Covey 08 It’s a shame for YOU not to make into instant cash I can’t say how much F&I Product pen- TRAINING IS TOO EXPENSIVE...OR IS IT? etrations by 25% PaulCummings 10 more money, when these dealers do machines of bot- money is being left immediately it so easily… tom-line pro t. GeorgeDans 21 THE CLIMB TO SUCCESS STARTS WITH HONESTY unrealized at your • Discover the one Just one thing that Mark showed Because I have not dealership. However, I secret that will Dave Davis, Editor & Creative Strategist A RECESSION IS A TERRIBLE THING us made us over $200,000 in prof- GrantCardone 24 met you and do can say FOR CERTAIN make your dealer- pg 0 pg1 TO WASTE its in 90 days Franklin Greene, GM not know anything ship an additional about your dealer- that the number of million dollars or sales & training solution Montgomery Ford LM ship, I can’t say dollars is substantial more over the next Our grosses went up 30% on the KirkManzo 14 QUALITIES OF TOP PRODUCING SALESPEOPLE front end, and we added almost 50% how much money and would shock you, ve years — We is being left have several clients if you knew. paul snyder in the back end. The best part of that unrealized at your who have already WITH PROPER TRAINING, THE ECONOMY FranTaylor 18 WON’T MATTER is that our sales also increased over dealership. How- experienced this 25% and continue to increase. ever, I can say FOR CERTAIN that and it will make the hair stand up on SYNERGY SESSIONS 2009, ATLANTA GEORGIA SeanV.Bradley 32 Gary Minneman Jr, GM the number of dollars is substantial your neck when you hear this. Brian Ankney, Sales-Improvement Strategist Sunshine Toyota pg 4 pg3 PaulSnider 34 WHY CUSTOMER INTERVIEWS ARE SO VALUABLE Working with Tewart Enterprises is and would shock you, if you knew. different from other consultants and There are a few things that every Call 888 2 Tewart (888 283-9278) or marketing solution trainers. We are getting results with dealer should be doing to make money, especially in this economy. e-mail to schedule very satisfied customers. In addition, a private and con dential interview. WHY DEALERS NEED A SOCIAL MEDIA AND RalphPaglia 15 REPUTATION MANAGEMENT STRATEGY, PART 1 Tewart Enterprises Inc is helping us The Great News is that I have identi- ***We will share candid and speci c to make our entire business more ed those little mistakes and have big information that will prove to you without HOW MANY CRM SYSTEMS DO I NEED? MattWatson 16 sound. With years of successful ex- solutions for them. NO BS, just real a doubt what I am saying is true. You will ralph paglia perience, this team is innovative and measurable results that start happening see real dealer examples that support these up-to-date presenting fresh ideas immediately and I guarantee those MattBaker 20 IF YOU DON’T START BUYING, WHAT WILL YOU SELL? to keep up with our ever-changing results. results. Because of time constraints, there will only be a limited amount of dealers business. I would recommend Tew- John Warner, Sales-Improvement Strategist DougBurkert 22 LITTLE ROCK DEALER JUMP STARTS SUMMER SALES WITH ‘LET IT RAIN’ EVENT art Enterprises Inc. to anyone who • Sell more vehicles without spending accepted into this program. pg 5 pg1 SteveBrazill 26 THE MERCHANT wants to improve their business. – Doug Mathers $1 more on advertising • Increase your gross pro ts any- P.S.: Please, only Dealers or General Managers Russwood Auto Center, Lincoln, NE where from $300 to $800 a vehicle may respond. ChuckPatton 28 E-MAIL MARKETING FOR SERVICE DEPARTMENTS - KEEP YOUR FOCUS ON RESPONSE VOLATILITY AND VELOCITY DalePollak 30 JasonLancaster 36 SEO 101 - BASIC SEARCH ENGINE OPTIMIZATION FOR AUTO DEALERS
  4. 4. leadershipsolution StephenR.Covey THE POWER OF COMPLETED STAFF WORK Over the years I When given a recommendation from his 2. Ask Questions have talked to tens staff, Kissinger routinely asked: “Is this the As a manager or co-worker, ask staff of thousands of executives, secretaries, very best you can do?” members, “What is your recommendation? managers and professionals who say that How would you solve this problem or how their greatest challenge is not being able Often his staff replied, “Well, no. We could would you implement this policy?” Get in to get everything done with the time and strengthen our recommendation with more the habit of soliciting ideas and buy-in — resources they have. analysis and detail.” psychological investment in the successful outcome of your project — from others. Given the average person’s struggle, can After they’d reworked it and resubmitted it, you imagine what it must be like for a Kissinger would again challenge his team: Be careful, however, to give credit and secretary of state or a minister of foreign “Is this your very best recommendation? Is recognition to others for their contributions. affairs? The demands are unbelievable — there any room for improvement?” Otherwise you will seem to be exploiting working at all hours of the night, attending others and their best thinking for your own meetings across the world, seeking Of course, the team always found ways to recognition or benefit. understanding, negotiating and making correct and improve their recommendation. decisions that impact entire nations. How on With added responsibility for their best 3. Clarify Assumptions earth do they manage? thinking and judgment, they would deliver When working with others in the dealership their final recommendation and be able to as a supervisor, supervisee or co-worker, Years ago I learned something very say, “We have been absolutely thorough remember to clarify all parties’ assumptions important from the example of Henry with our thinking, clearly identifying the as to the premise of the work, the required Kissinger, a lesson that I believe can be alternatives, an action plan and the end format, the criteria, the timelines and so applied by anyone in any position. When results.” Kissinger then replied, “Good, now forth. Often different assumptions can serving as secretary of state in the Nixon I’ll read it.” lead people to go off on different tracks, and Ford administrations, Kissinger instilled resulting in frustration and loss of buy-in. Clearly he understood that, if he wisely a principle known as “completed staff delegated important responsibilities to his work,” a concept which I think is the key 4. Give People The Tools They Need staff and empowered them to perform their to managing high demands, developing Provide necessary resources, time and completed staff work, they would fulfill effectiveness in yourself and in others, and access to information. Nothing is more their highest potential and make a greater getting it right. frustrating to people than to be expected contribution. to do completed staff work without the Simply, completed staff work requires Unfortunately many in the workplace necessary information and resources. individuals to give their best thinking, their have not learned to trust the principles of Be accessible when necessary to give best recommendations and ultimately their delegation and empowerment. They take it information and feedback. best work. all on themselves, convinced that only they themselves can do it right. Ultimately they 5. Provide A Setting For Success burn out and, meanwhile, the organization Schedule a time for presentation and review reaps only marginal thinking and marginal of the completed staff work. Give people a results. chance to make an effective presentation of their work. Respectfully ask questions with Consider your situation at your dealership positive feedback before recommending and all its demands and pressures to improvements and identifying next steps. get things done right. Ask yourself how you can begin to delegate and The principle of completed staff work is not empower others through the principle a panacea. It’s simply an effective means of completed staff work, and apply of teaching people to do their own thinking the following concepts for greater and put their best work forward. My effectiveness and efficiency: experience is that most people welcome the chance to study things out and to show what 1. Know What You Want, they are capable of. And Say So Establish a definite understanding If executed well, completed staff work of desired results, a psychological saves everybody’s time in the long run and contract stating clear expectations produces higher-quality results by tapping between yourself and those you lead into people’s talents and potential. and supervise. Help employees to understand that they will be called Stephen R. Covey, Ph.D., is co-founder of upon to give their best thinking in FranklinCovey, and is the author of The 7 solving problems, making decisions and Habits of Highly Effective People. He can formulating recommendations. Identify be contacted at 866.892.6363, or by e-mail0 criteria to be included in recommendations. at
  5. 5. leadershipsolution PaulCummings TRAINING IS TOO EXPENSIVE...OR IS IT? Over the last 12 true measurement and real accountability delivered. With e-Learning, you can deliver months, we have at the tip of their fingers. They can the content whether your organization provided education content to hundreds of communicate directly with all team is in need of motivation, sales training, businesses and thousands of individual users members and know that their message is leadership development, human resources worldwide. Our students have watched consistent and accurate. They can reduce the training, new-hire orientation or service hundreds of thousands of content specific current man-hours needed to deliver training training. Unlike traditional methods, episodes and passed exams that verify to key members of their organization. that would require you to go to multiple material comprehension, all without leaving locations and use multiple providers, their place of business. The great news: Let’s examine why e-Learning has emerged e-Learning allows the ease of having all Business owners have been able to provide as the No. 1 method of training and of your education content in one location world-class education for pennies on the educating employees. We live in a fast- 24/7/365. More importantly, you can take dollar compared to traditional methods of paced world where time is at a premium; that location with you to every location you training delivery. online learning is simply more efficient. The go. If you can get online you can get on convenience and flexibility of e-Learning with the process of educating yourself. It We live in an age where education is affords the user the ability to educate herself doesn’t get any easier than that. truly just a click away. The explosion of during the time that is best for her. Online Web-based learning systems have made it learning removes the stress of trying to In my travels, managers and leaders possible for businesses and individuals to accommodate an entire organization around consistently ask me about accountability receive world class, role-based content in a one schedule. and measurement. E-Learning provides a non-threatening, positive and cost-efficient simple but powerful solution to this pressing manner. The second most important reason for problem. Watch a video, take a test, create online learning is cost. The incremental cost a report. With e-Learning you know who Imagine the ability to educate 100 percent of Web-based training quickly trends to watched the training, when they watched it, of your people on a monthly basis for less zero. The incremental cost of live training and more importantly how they performed, than the cost associated with one person always results in a cost increase. Here’s a all in real time. As a leader you can actually attending one three-day workshop. Imagine great example: If you send 10 people to a measure the progress of multiple locations, the ability to provide content that is specific live event that costs $795 per person, your multiple departments, and an unlimited to the individual needs of every one of your cost would be $7950, plus travel, time away number of users through a quantitative and valued team members. Imagine knowing from work, and the loss of productivity. If qualitative dashboard reporting system. It that the training your people receive is you have an e-Learning system that is $795 doesn’t get any easier than that. perfect every time. Imagine granting them per month with 10 users, your cost per user access to the information 24 hours a day, is $79.50 per month. Twitter, Facebook, YouTube, Google, seven days a week, 365 days a year. Sound LinkedIn, and now e-Learning have proven too good to be true? Welcome to the world In addition, you are able to customize one thing: Web-based is the way to go. Get of e-Learning. training to individual needs at a much lower on the e-Learning train. It doesn’t get any cost. We are able to verify that learning easier than that. Online learning is more affordable, takes place through testing, which is not more convenient, more efficient, and possible in a live event format. Another more effective for the dollars invested, valid point is that you — as an organization, and provides any business owner the business owner or individual — have Paul Cummings is president and CEO of opportunity to do something they could not the ability to repeat learning with no Paul Cummings Enterprises. He can be possibly do in any other training format. incremental cost whatsoever. contacted at 866.865.3171, or by e-mail at They can educate 100 percent of their people with content targeted to meet an Now let’s look at the simplicity and ease of individual’s specific needs. They can have e-Learning: If it can be recorded it can be10
  6. 6. specials, consumer reviews, video presentations, vehicle test drive videos, text marketing, mobile Web site displays, window stickers, online credit applications, CRM-driven follow-up and life cycle marketing campaigns and so on. Ideally, if you do the work one time, and do it correctly, you can let the technology do the rest for the best results. “Having one message across your media just makes sense,” Metter said. “It makes it easier for the consumer to remember your brand name or whatever you’re pushing. It’s somewhat subliminal. They walk past the TV and they see your message. They go online and they see the same message. They’re listening to their radio and hear the same message. You can’t help but to be in their consideration when you do that and you do it well.” Emotion Sells It’s too easy to forget how emotional the auto purchase process is for the consumer. We sell hundreds of cars a month, but the average consumer will only purchase a handful of cars in their entire lifetime. It is equally easy to get caught up in “information overload” by repeating vehicle features over and over, and not create unique emotional content to sell the consumer. To the consumer, every car is different. We must create ads that highlight (with photos and By TimJames dealer comments) all that is unique and different about every car, thus increasing our ability to justify the value, create trust and urgency, and inspire mental ownership. Over the last couple of years, we have seen individuals — both Online advertising really is more efficient. It’s certainly more on- “Dealers have one of two choices,” Metter said. “Either we can treat our inventory those new to the auto industry and industry veterans alike — defy demand than anything else. With other media, you hope and pray that as commodities, or we can really try to build emotion around the car. Customers, the conventional wisdom that “the best you can do is survive in this people see what you’re doing. Online is great because, whether it’s as a rule, are emotional about their car purchase. The car is an extension of a economy” and skyrocket their dealerships into top performers. So we’ve 2 a.m. or 6 p.m., you have the ability to be in front of the consumer someone’s personality. If we really build the story around the car, and how that sat down with a few of these superstars and searched out some of the when they want it.” car might make someone’s life better — whether it’s work or family or whatever fundamentals that seemed to be common to each. — I think certainly helps.” Joe Healy, the Internet director of Houston-based Lone Star Chevrolet, Start With the End in Mind knows how important using effective online advertising can be. Healy has seen what emotion can do to move specific vehicles. “I have a There are a lot of places and ways to list your cars online these days. “We’ve moved up to be the No. 3 Chevy dealer in the nation, and brilliant marketing guy, Stuart Russell, who uses a lot of emotional words in There are so many cool gadgets out there to plug into your Web site part of it is we’ve changed our media mix,” he said. “We still do our advertising,” he said. “That’s what differentiates us from a lot of dealers. I for this, that or the other. The fact is that it is easy to lose track of what some branding with newspaper ads and television and a little bit of look at dealers’ ads throughout the country, and a lot of people just use the basic we are really trying to accomplish. The Internet, like television or radio, but we’ve placed probably 300 percent more emphasis on the descriptions. Stuart examines every car and personalizes each and every ad. He radio, is simply another means of communication. People connect to Internet. There’s no billboard department here. There’s no newspaper incorporates a lot of great words and phrases, like ‘exhilarating performance,’ the Internet looking for information or entertainment, just like they do department here. But there is an Internet department. We’re able to or ‘ice-cold air conditioning,’ and that emotion gets a lot of people to read and when they turn on the TV or radio. This has created new media sources measure those results very quickly. It’s grown for us rapidly; about 37 look at all the details of that particular vehicle.” that provide consumers with the information or entertainment that percent of our overall business is done through the Internet with only they desire (some being more popular than others), and thus create the nine salespeople. I have about 18 percent of the sales force, and we’re Video can greatly increase the emotional response from the consumer by opportunity for you to advertise your inventory. doing 37 percent of the business.” turning your static, site-based ad into a dynamic, visual ad, provided the video contains the same rich content and emotion needed to “sell” the car So where does that leave you? The same place you’ve always been. The ability to use a number of photos also is a huge selling tool, Healy vs. “tell” about it. “Trying to ‘three dimensionalize’ the car for the customer Your goal is to create ads for your inventory that get people to your said, and one that many dealerships don’t take advantage of. “Most makes it easier to make a decision on a certain vehicle,” Metter said. “Again, lot. The great thing about it is that your own Web site and inventory of our competitors show nine or 10 photographs. We have a bare if that differentiates that car over a competitor’s car, that certainly gives us an display pages, if used properly, are also “media sources,” and can now minimum of 36 photographs,” he said. “ On eBay, we’ll do up to 70 advantage.” be included in the “channel guide” (a.k.a. search engines) to drive even photographs. The customer likes full disclosure, especially because more people directly to them. we may ship the car out of the country, so we’ll identify even a minor scratch. We’re proud of the product we put out there, so we’ll take Time Is Money The world moves at supersonic speed today. You can create an ad for a vehicle We know that the more information and emotion we have in our ads, the the pictures. Basically, we’re selling the emotion. We want to put that and have that ad live on multiple Web sites (and in front of thousands of potential more likely it is they will rank high on the search engines, and the more customer in the car.” buyers) within minutes. More importantly, the data contained in that ad can be used likely it is that they will satisfy the consumer’s search for information. to drive even more traffic to your Web site or any destination that you desire. You If this is the case, they will generate more emotional response from Measure Twice, Cut Once spend $5,000, $10,000, maybe even $100,000 per month to advertise on the the consumer, and this will make your Web site a trusted source of Starting with the end in mind, you now know that your goal is to create Internet. Why would you let a car sit on the lot for even one day without information. The consumer will more likely come back to your Web site ads for the Internet that drive more traffic to your Web site and more being online, let alone a week to 10 days? Think of all the potential later in the buying cycle. consumers to your lot. Once you invest your time in creating the best ad buyers who are searching the Web in your market every day, and how that you can create for each and every car, you can focus the majority of many you miss out on when you don’t have your ads online. So before adding any new products or services, you need to ask yourself your time properly following up on leads and selling cars. This means the following questions: the more you can automate the process for creating the information and Healy said that his dealership makes sure a vehicle is put online as • Does this add (or make it easier to add) more information to emotion of your ads, the more time you have to sell. soon as it has been detailed and ready for sale. “Obviously, the quicker my ads? we can get it online, the quicker we can sell the vehicle through • Does this add (or make it easier to add) more emotion to my ads? Your goal should be to create business rules — the same business AutoTrader,, our Web site, etc.,” he said. “It cuts down the • Can I accomplish the same results with the resources and tools I rules that are already in use at your dealership — into your inventory number of days the car sits in inventory, plus obviously, the car is already have? management system to automatically create information and emotion in never going to look as good as it does right after it’s been detailed.” your ads. The data for those ads can then be integrated throughout your “A couple of years ago, online advertising was a luxury; now it’s a online media and marketing partners’ platforms to create content-rich Tim James is the director of sales with HomeNet, Inc. necessity,” said David Metter, chief marketing officer of MileOne. and highly emotional ads that you can incorporate into your vehicle He can be contacted at 866.924.6573, or by e-mail at “I think that everyone talks about online advertising being cheaper. display ads, manufacturer incentives, vehicle specials, parts and service