Get your own personalized Louisville Slugger Baseball Bat free! pg.15




                                                                                .biz




                                                               Herb Chambers Sells 600
January 2004
                                                                        Vehicles Online
                                                                       You Are the CEO
                                                                       How to Forecast
 PERMIT NO 879
                                                                         Your Success
 LOUISVILLE KY


                                                               Demo Drives for Success
      PAID                              Louisville, KY 40202
  US POSTAGE                            Suite 202
   PRSRT STD                            756 South 1st Street


a division of Systems Marketing, Inc.
manager
                                                                                                        I N S I D E




                                                                                                                                                       driventeam operation
                                                                                                                                                     uccessrevenue automobil
 6 The Art and Science of Managing Your Managers




                                                                                                                                                             solutions
                                                                                                                                                                                                 Steve Hiatt
 7 You Are the CEO                                                                                                                                                                           Mark Tewart




                                                                                                                                                                                                       profitprofessional
10 Demo Drives for Success                                                                                                                                                                  Brian Ankney
11 Sales From the Internet: Search Engine Optimization




                                                                                                                                                               sales
                                                                                                                                                                            Dennis McDonough
12 May the Forces Be With You                                                                                                                                                           Brian Manzella
14 Implementing Change Within Your Sales Team                                                                                                                                              Terry L. Isaac
16 eDealers of the Year: How They Did It                                                                                                                                                      Patrick Luck
18 Herb Chambers Sells 600 Vehicles Online                                                                                                                                         Sean Wolfington
22 How to Forecast Your Success                                                                                                                                                      George Jackson
23 The Effectiveness of Jingle-tising                                                                                                                                                               Jeff Fishel
24 A Word From the Coach, Part 1                                                                                                                                                                    Joe Verde
26 Managing Your Time                                                                                                                                                                            Brian Tracy
28 Now Is the Time to Plan                                                                                                                                                                       Fran Taylor
Cover Image: Herb Chambers, featured this month on pages 16 and 18


                                                                                                      A cure won’t just save children.
                                                                                                                                                                                      Mary Tyler Moore
                                                                                                          It will save childhoods.                                                    International Chairman
                                                                        These kids live with 4-6 insulin injections
                                                                        daily. Plus, they face the threat of blindness,
                                                                        heart attack, kidney failure and amputation.
                                                                        Their only hope is research. The Juvenile
                                                                        Diabetes Research Foundation is closer than
                                                                        ever to finding a cure. Help us help them. Call
                                                                        1.800.533.CURE or visit www.jdrfe.org                                                     dedicated to finding a cure




               Psalms 37:3-5                                                                                                                                              Patrick Luck, Editor & Publisher
                                                                                                                                                                                                        inventory
                                                                           Success Driven Solutions




                                                                                                                                                                                   • pat@autosuccess.biz
    Trust in the Lord, and do good; so
                                                                                                                                                                    Susan Goodman, VP of Operations
   you will dwell in the land, and enjoy                                                                                                                                    • susan@autosuccess.biz
                  security.                                                                                                                                                     Lindsay Porter, Copy Editor
   Take delight in the Lord, and he will                                                                756 South 1st Street, Suite 202                                          • lindsay@autosuccess.biz
    give you the desires of your heart.                                                                    Louisville, Kentucky 40202                                Courtney Hill, Advertising Services
                                                                                                                                                                          • courtney@autosuccess.biz
  Commit your way to the Lord; trust in
                                                                                                               Toll Free: 877.818.6620                            Kelley Humkey, Advertising Services
           him, and he will act.                                                                                                                                            • kelley@autosuccess.biz
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   In God We Trust                                                                                              Web: autosuccess.biz
                                                                                                                                                                    Thomas Williams, Creative Director
                                                                                                                                                                                      dealer




                                                                                                                                                                          • thomas@autosuccess.biz

  AutoSuccess 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 or
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Visit Experian Automotive at NADA 2004, January 31 – February 3, Las Vegas, Booth #5735
sales and training solution
                                                                                                        SteveSteve Hiatt
                                                                                                            By Hiatt

                                                  The Art and Science
                                           of Managing Your Managers
                       To get your team          these meetings are designed to do that.     take care of this for you. They want the team
                       on the right track        Once these meetings become normal,          to succeed. We aren’t always too subtle in
                       you have to set the       your managers start to speak up and ask     these meetings and the managers really get
                       course with your          questions or even challenge. Some of the    into keeping everyone accountable.
                       managers. As an           best ideas and management strategies can
owner, GM or GSM, you have to be willing         come out of these types of forums.          Steve Hiatt is the General Sales
to be involved in setting the course if you                                                  Manager of Hiatt Pontiac GMC, Hiatt
want to have specific results.                    You can also hold people accountable        Outlet and Hiatt of Auburn. He can be
                                                 publicly for what they agreed to or their   contacted at 866.265.5616, or by email
The people you hire for sales management         assigned goals. Many times other managers   at shiatt@autosuccess.biz.
and finance are often self-starters, that is
why you hired them in the first place. These
team members are often not interested in
correction, they are usually giving it, which
makes coaching them harder. It is your job
to get everyone on the same page.

Steps to keep your team on track:

Have a plan.
Have any plan, as long as it is written down
and measurable. Know what you want from
the team management, and be prepared to
tell them specifically what you want. Your
managers will run their own course without
you having something specific for them.

Express it.
Let the management team know what
you expect from them. Give them results
you will demand. Whether units, gross, or
employee retention, if it isn’t written for
them don’t expect them to know.

Adapt and adjust.
Don’t just accept the results or the feedback.
Use it for change. Figure out what is going
right or wrong and then plan activities to
change the results. Have a consistent tool
for measuring; it can be the statement, a
daily operating control or floor log, just
check it on regularly scheduled intervals.

Praise.
Give positive feedback. Be genuine and
sincere. You don’t need to do back flips on
the showroom floor, simply find something
they did and tell them. Don’t just say
“Good Job!” Address something specific so
you don’t sound trite. Try something like,
“Sue, I watched how you handled Mr. and
Mrs. Johnson’s objections in finance, and
you did a good job of building value.” This
way your employee knows you are sincere,
because you sited the situation.
                                                                                             See us at NADA Convention
Have a forum.
Get together with your managers on a regular                                                        Booth # 5463
and planned basis. Pick a day, set time
aside, hold phone calls and interruptions.
You need time to communicate and


   6                                                                 successful solutions at www.autosuccess.biz
sales and training solution
                                                                                                   Mark Tewart
                                                                                                       By Mark Tewart



                         You Are the CEO
                        Are you the CEO of        follow-up to the point that it is being done
                        your company? If          while you sleep or are on vacation.
                        you’re a sales person,
                        and you answered no       Have you set up affiliate programs with
                        to this question, think   other businesses to share customers and
again. To be successful you must have a CEO       provide an introduction to one another?
mentality. All successful sales people view       Example, “Who does business with whom I
themselves as a business within a business.       want to do business with?” Ask that question
Never forget that the company you work for        first to think of businesses that you can set
writes and signs your check, but you fill in       up reciprocal agreements with to provide a
the numbers. Always take responsibility for       value proposition to their customers with
everything. You are the CEO.                      enough leverage so they will want to call,
                                                  fax or email you to get what you sell.
What does a CEO do?
First of all, a CEO designs a marketing           Most businesses utilize one-stage marketing.
strategy. How do you get your business?           This requires running an ad and asking
Walk-ins, in-bound phone calls, repeats,          someone to buy. For many sales people,
prospecting, networking, referrals, be-           this is expensive and not effective. A better
backs, affiliate marketing programs,               strategy is to form two or three stage
database mining, database swapping,               marketing techniques. You are asking a
niche marketing, seminars, websites,              customer to respond that they are interested
email responses with auto responders and          and want more information. Here are some
sequential auto responders. Do you have at        examples: Give a be-back cd to every
least one strategy for utilizing each one of      customer who does not buy and ask them to
these? Many people may not even know              play it on the way home. The cd should have
what many of these items are. The bad news        two to five minutes of information that thanks
is that you are way behind the top businesses     them for the opportunity and provides them
in the world, but you can catch up and even       with specific reasons why they should buy
pass the most productive sales people with        your product from you, at your dealership.
dedicated strategy and smart actions.             Give the customer an incentive to call you
                                                  back. Arrange with a local restaurant that
Top sales people gain and maintain their          you will provide a coupon to every customer
results through many avenues beyond walk-         who shops or services with your dealership,
in traffic. When you are new, you spend 80         an offer for two-for-one at the restaurant.
percent of your time gaining new customers        In return, ask the restaurant to also reward
and 20 percent maintaining them. As each          their customers by giving each customer a
month goes by, your goal will be to reverse       coupon with their bill that provides a special
the time used to 80 percent maintaining           offer from you, with enough leverage for the
current customers and 20 percent gaining          customer to respond for more information.
new ones. To do this, you must develop a          Provide seminars for local groups on the
marketing web with multiple streams of            subject of, “How to buy a vehicle and not get
lead generation. Lead generation = dollar         ripped off.” Do you know where the last 10
creation.                                         customers who have bought from you work
                                                  and how you can set up automobile buying
If floor traffic dries up, you will have an         programs with their employer? If you let
excuse not to sell vehicles. From now on,         your mind expand, your wallet will follow.
excuses are not allowed. What is your
strategy for walk-ins? Do you have a              You have two choices, you can use excuses
process? Does anyone besides you follow up        like, “My managers won’t let me do
with unsold customers? If you TO in person        anything,” “I don’t have the time,” “I have to
why not TO on the phone? Are you utilizing        make money right now,” or a million other
monthly planners or productivity software         excuses. Or, you can think of your business
that allows you to automate your follow-          as a business and become the CEO with
up of sold and unsold customers by phone,         a long-term, committed strategy to grow
mail and email? Do you have a monthly             expeditiously.
newsletter or, better yet, an email newsletter
that reaches your customers unobtrusively
and at zero-cost? There are companies that        Mark Tewart is the President of Tewart
will set up auto responders with pre-set          Enterprises. He can be contacted
messages to be sent at certain intervals to       at 866.429.6844, or by email at
your email list. This automates some of your      mtewart@autosuccess.biz.


january 2004                                                                                                      7
sales and training solution
                                                                                                      Brian Brian Ankney
                                                                                                          By Ankney



                                             Demo Drives for Success
                      In the November             through your test drive route. Encourage         customer through service. Sell your service
                      issue, we discussed         your customer to hit the accelerator and         department. Mention the exceptional quality
                      added value for your        take turns quickly. The test drive builds the    of work and continuous training. Now as
                      customers so that           desire that will get this deal today.            you pass the service writers, introduce your
                      they can feel good                                                           customer to their service writer. Get a card
about buying at fair gross profits. Now            If there is a spouse, get the spouse to drive    for your customer and explain that their
we will cover how to add value for your           also, insist, “I would not be comfortable        service writer has different days off than
customer during the demo drive.                   selling your family a car that you, yourself,    you, so they will always have someone they
                                                  don’t feel safe and confident driving.            know to help them with any of their needs.
The demo drive.                                   Just try it out and make sure that in an
Your customer is in the passenger seat, and       emergency you would be okay driving it.”         The trade appraisal.
you are in the driver’s seat. You pull out on     Once the spouse has driven, get the main         After the service walk you should return
to the street and quickly accelerate. Now         driver back in the driver’s seat. Get them       with your customer to your desk. If there
is the time to use the information your           excited, again. Solicit four or five positive     is a trade, collect the information needed.
customer gave you during step two, the            statements from them and move on to the          If your customer wants to go with you to
qualifying step. Demonstrate the features         trial close.                                     get the VIN and miles, do not insult their
your customer told you that they wanted                                                            car. Everyone wants to get the most for
in their next vehicle. Show them the dual         The trial close.                                 their trade. Make statements like, “Boy this
climate control, rear air, louder stereo and/     Every sales person must design their own         is a nice car. It has gone a lot of miles for
or seven-passenger seating. Prepare them          personal trial close. It should look and feel    you. You sure got your moneys worth on
to experience the intense acceleration,           natural. You must be confident in your            this car.” Let them feel good about their old
award-winning braking distance and                words, and never forget this step. This is       car so they can buy their new car from you.
turning radius. Pull your customer into           where you get your customer’s permission
a parking lot and stop the car. Finish            to sell them a car today. Reiterate your         Now you have all the information needed
demonstrating the bells and whistles and          customers needs and wants and how this           to desk a deal and a customer that is ready
then rapidly accelerate to 15-25 mph and          vehicle fulfills and exceeds each and every       to buy a car. Remember that a sale is like a
hit the brakes. Use statements like,”feel         one. Use, “You said,” statements like, “You      tower. Every step is built on top the previous
that acceleration,” and “it’s great to be         said that this stereo is exactly what you        steps. If you do a weak demo and don’t sell
able to stop this quickly in an emergency.”       want and that trunk will definitely fit work       a certain car, your customer will flop out
Cut the wheel all the way, and drive the car      stuff. You said that the driver’s seat moves     of negotiations and go home to think/shop
in circles. Comment to the customer on the        and sets up just the way you want and that       your competition because any payment is
vehicles impressive turning radius.               this is definitely the color. I agree with you.   too much for a car that is not the one. The
                                                  I think that we have found your next car.        same is true of the trial close. If you do a
Your customers are looking for a vehicle          There is just one thing left to do. I guess      weak trial close, your customers will want
that will fit all of their children and get them   the only thing standing between us doing         to think it over and leave. Your manager
to work and pull their fishing boat. Lots of       business today is price…like it is with most     needs a strong trial close to set them up
vehicles fit these needs. Some cost more and       people…Right?” Your customer will either         for the T/O. Ask for help in the areas you
some cost less than yours. Some have better       say yes, with some small stipulation, “Well      feel weak. Your managers can role play and
leases and lower incentive rates. Some have       your manager is going to have to give me         help you improve your income.
access to lenders that buy deeper than those      $5,000 for my trade,” or give you a firm
you work with.                                    objection*.                                      * Firm objections are objections that mean
                                                                                                   that even if a deal can be reached that
Desire will sell this car today. Desire will      Take your customer’s yes and their               it cannot be done today or tomorrow. If
get the higher payment, longer term or            stipulation and turn them into a second trial    you believe you can’t get it today…you
additional $1,500 down. Desire will get           close statement. “So if we could get all the     are right, no matter what the objection.
your customer to call their grandmother into      figures, including your trade, agreeable,         You need help, so finish the drive and
the store tonight to cosign. Acceleration,        YOU WILL TAKE DELIVERY OF THIS                   service walk and go to desk for help. We
braking and turning will create this desire.      CAR TODAY?” You need a yes here. Your            will discuss firm objections further in an
You have demonstrated each during the             customer will say sure or give you a firm         upcoming article.
drive. Now exit the vehicle, and invite your      objection*.
customer to drive with a statement like,
“Alright, I guess my turn is up. Now it is        The service walk.
your turn to drive. You are going to love the     As your customer drives back into the
way this car drives.” Have your customer          dealership, direct them to park in the sold
accelerate rapidly and brake. Have them           row. Exit the car and say, “Follow me.”
cut the wheel to see the incredible turning       Walk ahead so that your customer must            Brian Ankney from AutoClick can be
radius. Ask your customer, “What do you           hold on to the keys. Show your customer          contacted at 866.247.9587, or by email
think?” Get them excited. Now instruct them       into the service department. Walk your           at bankney@autosuccess.biz.


  10                                                                                        visit us at www.autosuccess.biz
marketing solution
                                                                                      Dennis McDonough
                                                                                             By Dennis McDonough

                                            Sales From the Internet:
                                         Search Engine Optimization
                       There are many            If they are slow to load, either modify            Do the home page first and then each
                       things you can do         the pages to be faster, select another             additional page. Getting listed in the
                       to help your website      page or look for a new host. Speed                 Google database usually takes four
                       be listed among the       is very important to your Google                   to six weeks but can take over three
                       top search engine         ranking.                                           months. Be patient, don’t submit your
                       rankings.                                                                    site pages every day, only submit
                                                 5. Work these top five phrases into                 individual pages every thirty days.
Search engines include Google, Yahoo,            the website titles, ‘meta’ tags, ‘alt’
MSN, AOL, All the Web, Find What, Alexa          tags and content. Really look at                   7. Monitor your words and phrases on
and Teoma, to name a few. These sites fall       the content. A good search engine                  the Google site. Do monthly checks to
into two classes, spiders or directories.        optimization firm will make copy                    see where your site ranks.
Spiders use programs to search the Internet      suggestions to you.
to find sites through links. Directories take                                                     Search engine optimization is not a
submissions, taking only the sites that ask      This optimization needs to be done on           one-time fix. Monitoring and updating
to be listed. Most directories require you       a page-by-page basis. Do not repeat a           your site pages as the ranking goes up
to pay a subscription fee to be listed in        phrase just to get it used, if it is too        and down should at least be done on a
them. Most spiders are free, but you have        frequent in the content your ranking            quarterly basis.
to get the spider to find your site. Google       will suffer. Do not try to get all the
is the biggest spider, and Yahoo is the          phrases in one page; that does not
biggest directory.                               help either.                                    Dennis McDonough is the President of
                                                                                                 Bit-Concepts. He can be contacted at
Google is the most popular search engine.        6. After completing the modifications,           877.354.1998, ext.202, or by email at
It is a spider and does not cost to be listed.   submit each modified page to Google.             dmcdonough@autosuccess.biz.
Google provides the results for over 75
percent of the searches done today on the
Internet. Yahoo, AOL, MSN and others
use Google for some of their results.
Google has special rules to be followed
for an effective listing on their site. These
rules change on an irregular basis and
should be reviewed regularly.
                                                             Log 200-500% more opportunities!
The time to start thinking about search
engine optimization is when your site                                                    Leader in Showroom Traffic,
is being developed. A good website
developer will understand Google’s rules
                                                                                         Lead Management,
and incorporate them into the site design.                                               and CRM Software
                                                                Track all outgoing          real-time showroom & desking control
Use these seven steps to achieve a good                           phone activity
ranking on Google:                                                                          internet lead tracking system
  1. Identify the words and phrases                                                         2-way active DMS integration
  that your customers would use to find
  you. A single word does not usually                                                       complete in-store training
  work well; there is just too much                            Minimize data entry
  competition.                                                 with license scanner         drivers license scan, worksheets
                                                                                               & credit bureaus
  2. Check the phrases for popularity,
  and select the top five most searched.

  3. Enter phrases on the search                            track more
  engines to see if they return sites for
                                                                                         The Higher Gear Group, Inc.
  companies like yours.                                        bring back                Hoffman Estates, IL 60195
  4. Select specific pages to feature
                                                                    more                 tel 866.873.0029
                                                                                         fax 847.310.3196
  each phrase. The pages you select                                                      sales@highergear.com
  should have static content. Use the
  home page and directly link from the
                                                            close                        www.highergear.com

  home page. Check these pages for
  their load time. They should load in
                                                              more                       call for a FREE consultation and demonstration

  less than 15 seconds on a dialup line.

january 2004                                                                                                                              11
golf solution
                                                                                                  Brian By Brian Manzella
                                                                                                         Manzella
                                        May the Forces Be With You
                       There are many           the the grip end of the shaft, into the wall,      pivot forward, around your spine, you can
                       movements that a         the clubhead would go down the wall and            ‘drop’ the club right on the ball (pic 3). Or
                       player must perform      forward toward the ball and target (pic 1).        drag it down on the ball. Or push it.
                       in an efficient golf
                       swing. But there         Dropped, pulled or pushed STRAIGHT                 The second reason you need the rotating
are only two forces that the golfer has         down, the clubhead will go forward also            ‘around-ward’ force is for speed. Simply,
to create. They must create a downward          if there is a pin at the grip end of the shaft.    the faster you unwind (RPM’s) the faster
force and a rotational or, what I like to       The key is that there is only a downward           the clubhead will go.
call, an ‘around-ward’ force. Poor players      force at work in this ‘pinned’ example.
add directional forces such as forward and      In the golf swing there are two pins: the          The ‘around-ward’ move most closely
upward in a vain attempt at making the          primary one at the left shoulder where             approximates a left-handed frisbee toss.
ball fly toward the target. If you can learn     the left arm attaches, and a secondary             Just go out to the store and buy a basic
to create the “Two Forces” and eliminate        one at the left wrist. So with or without          model frisbee and practice throwing it left
the unnecessary other forces, you can           wristcock, the golfer gets two for one with        handed. Just stand 90 degrees to the target,
simplify your swing and maximize your           the correct application of a downward              like your golf stance, unwind and fling that
distance and accuracy.                          force. The clubhead will go downward               frisbee. Just like in the golf swing, ‘over-
                                                and forward.                                       acceleration’ of the left arm, by the left
Let’s start with the downward force.                                                               arm, is a disaster. Allow your torso to drag
Doesn’t there have to be a forward force?       The ‘around-ward’ force is necessary for           your left arm around and flail your left arm
The answer is no. If you put a golf club        two reasons. One reason is transportation.         off of your chest (pic 4).
against a wall, horizontal to the floor, and     Transportation? Yep. If you make a
drop it, it falls straight downward due to      ‘normal’ backswing and let the arms/               The only difference in the frisbee pivot
gravity. The same happens if you pull it        hands/club unit just fall from the top,            and the golf version is the plane. The
down the wall or push it down the wall. It      the clubhead will hit the ground several           frisbee plane is horizontal to the ground,
falls straight down. But, if you had a pin in   inches behind the ball (pic 2). But if you         and the golf plane is on an incline. You


                                      1                         2                           3                                              4




  12                                                                          subscribe today at www.autosuccess.biz
continued


could throw the frisbee toward the ground,      tilting’ as the release occurs (correct pic 6,   to understand the two forces in the golf
on the target line, a few yards forward on      incorrect pic 7).                                swing and you should be able to apply
the ball, to get the feel. The change in                                                         them to your swing effectively. Just as
planes necessitates the tilting of your spine   This ‘around-ward’ rotation of the golfer,       important is the elimination of the forces
both more over and slightly to the right,       called the pivot, creates a resultant            that are not either downward or ‘around-
just like in the golf swing (pic 5).            outward force, just like the one created         ward.’ The reason the great players look
                                                by twirling a rock on a string (pic 8). It       like they are doing less than you are, is
The combination of the downward force           should be obvious that poor players, with        because...they are.
and the rotational force can be exercised       their upper body forward lunges and lifts,
by skipping rocks. Rock skipping includes       disturb the orbit of the clubhead, much as
the right arm throw (downward on plane)         any non-rotating force would disrupt the         Brian Manzella is a PGA Teaching
and the ‘around-ward’ pivot with a titled       twirling of the rock on a string.                Professional. He can be contacted
axis. So many golfers have trouble with                                                          at 866.873.0036, or by email at
this all-important detail. The golfer must      With just a frisbee, a hand full of rocks        bmanzella@autosuccess.biz, or visit
be able to create this throw without ‘un-       and a piece of string, you should be able        www.brianmanzella.com.


                                            5                                     6                  7                                 8




january 2004                                                                                                                        13
sales and training solution
                                                                                                     TerryByL. Isaac
                                                                                                            Terry L. Isaac

                                                                Implementing Change
                                                               Within Your Sales Team
                      The goals that you        Allow your team to have some input on              Test the process you’re changing, you will
                      set will result in the    the new goals, it will give them a feeling         gain all the support you need when you
                      game plan you put         of being a part of the goal, and they need to      show them how the change will benefit
                      into action. Most         buy in. This business is full of self-starters     them and the dealership.
                      of the goals you set      and bringing a team together might not
will require change. For example, if your       be easy. One way to get your goal across           Set the standard, it’s your job to make
goal is to improve CSI, it will require a       to your team is to break it down into two          changes as needed for the improvement of
change in how you handle your customers         phases. Start with the objective of your           operations. Management is leadership, and
and will need to be evaluated to put a new      goal. If your goal is to increase sales, start     leadership is leading the way, not asking
plan of action in place. After the plan is      with the first phase of a sale. The first phase      for directions. Change is a good thing; it
laid out, you must coach your sales team        is a lead, all sales made start with leads, ups,   keeps your team growing and prevents
to implement the plan, it must be clear so      sales calls, factory leads, etc. As you start,     complacency. Sales people get into a routine
the team can understand the procedure to        form your flow chart, this is a good way to         and don’t increase their production, change
follow.                                         structure your plan. Show how leads are            their routine and change their results.
                                                currently being handled and better ways of
Many people resist change because of their      handling them, whether it’s sales calls with       If a sales person sells below average and
comfort zone. Without change your goals         a new word track or handling ups. This will        you do nothing to adjust their performance,
will be impossible to achieve, if there is no   increase leads.                                    the next month the same result is repeated.
change then you will only repeat the same                                                          Implement ongoing training and coaching
results. Communication is key for getting       Take one step at a time. People can’t handle       to improve the production.
your team to change. You need to make           a lot of change at once. It takes patience
sure you clarify the changes. The more          and time to get people to change but never         An excellent goal is to implement
clear the change, the more likely your          stop trying, always believe it will happen.        an ongoing training program for low
team is to respond. Change is a process         Explain the importance of the change to            performance, this goal of improvement has
and it takes time to change peoples ways.       your organization and the rationale for it.        two benefits.
                                                                                                     1. It will increase sales, which is an
                                                                                                     every day goal, and
                                                                                                     2. It will increase retention.
                                                                                                   Remember to use the flow chart for all
                                                                                                   of your goals and to break them down to
                                                                                                   communicate to your team. Have a kick-off
                                                                                                   meeting/training session to get your plan
                                                                                                   into action. You will need to have your
                                                                                                   training set up over several weeks to teach
                                                                                                   the new process. Set up training materials
                                                                                                   to present your program in a professional
                                                                                                   manner. This will give you credibility with
                                                                                                   your team and make it easier for them to
                                                                                                   follow and understand the program.

                                                                                                   After providing the training for the change
                                                                                                   you are implementing, you need to have
                                                                                                   feedback on an ongoing basis. Your sales
                                                                                                   people all learn at different speeds and might
                                                                                                   understand in different ways. Tracking the
                                                                                                   results of the new process is the only way
                                                                                                   to show progress and ROI. The information
                                                                                                   you track will be important for modifying
                                                                                                   your plan of action.

                                                                                                   Management must take action and set goals
                                                                                                   from the top down. If everyone understands
                                                                                                   the new goals and why the changes are
                                                                                                   being made, the whole team will work
                                                                                                   together toward improvement.
                                                                                                   Terry L. Isaac is the Corporate Sales
                                                                                                   Trainer for the Neil Huffman Auto Group.
                                                                                                   He can be contacted at 866.265.4680, or
                                                                                                   by email at tisaac@autosuccess.biz.


  14                                                                                   contact us at www.autosuccess.biz
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feature solution


                                                                                                       Patrick Luck
                                                                                                           By Patrick Luck

                                                                           eDealers of the Year:
                                                            How They Did It
Creating a successful website is a              it is our number one marketing medium.          purchase program’.
possibility for all dealerships. To have        The Web is our number two or number one         Red McCombs: Mass bulk multi-media
an award winning website, you must              source for phone calls into our dealerships.    emails and search engine placement
know how to accomplish it. The dealers          We know because we measure it. We sell          services. We also put our URL on all ads
award winning sites for 2004 sold 60-600        over 600 units a month, we drive revenue        and everything with our name on it.
additional units a month, while driving         to service, parts, F&I and more.                Courtesy:      Search     engines,    email
revenue to all profit centers. A great way       Tasca: Over 60 percent of our customers         marketing, local markets newspaper sites
to achieve this success is to learn from        visit our website before they come to           and our traditional marketing.
others that are already using their site to     the dealership. If the majority of our          Sheehy: Make sure your website is on
sell units and drive profits. The winning        customers research on the Web it makes          ‘all’ dealership material and that you’re on
dealers were asked questions to show            sense for us to be there. Seventy-two           top of the search engines.
how they achieved these positive results.       percent of our phone traffic is Web based
The interview responses are listed to help      on our phone traffic reports. It is a critical   Question 4: What type of people do you
with successful website techniques.             marketing tool.                                 hire? How do you train and pay them?
                                                Red McCombs: Absolutely. We sell an
Question 1: What type of website                additional 260 units a month, generate          Herb    Chambers: Sales people, not
should a dealer build? What are the key         more sub-prime business, create a lot of        computer geniuses. I can teach a great sales
characteristics?                                service appointments, and we sell parts         person technology in a few hours, but it takes
                                                online as well.                                 months to teach a computer programmer to
Herb Chambers: Remember to build a              Courtesy: The majority of our phone             be a great sales person. We have an in-
website for your customers, not you. When       traffic is from our website, and we sell an      house, nine-day training program. Pay?
evaluating content, do so with the eye of a     additional 84 units a month, not including      The same as showroom pay.
consumer...not a dealer principal. Less         the extra phone and showroom traffic. Last       Tasca: We hire people that are good on
fluff than they get in the print ads but more    month, we became the second biggest             the phone. We use a company to help our
content including product information,          Chevrolet dealer in the country and the         strategy and train on the process, and we
pricing, financing, specials, etc.               Web was a critical part of that success.        have them in two days a month to keep up
Tasca: The site must be simple and              Sheehy: Yes. We get a number of calls           to speed.
built around the customers needs. A key         and walk-in customers who say they were         Red McCombs: Experienced car sales
characteristic is information, not just price   on our site or they bring in our discount       people. The best on the floor, will be the
but information that builds value in your       certificate. Overall, the Web is also            best on the Internet. We have phone scripts
dealership and products. We also highlight      directly responsible for 250+ incremental       and weekly sales meetings. They get paid
the advantages of our dealership and our        sales a month, and our cost per sale is less    17 percent of total billed deal.
certified pre-owned program.                     than $150 which is better than our other        Courtesy: People with sales experience
Red McCombs: Ease of use is the                 marketing mediums.                              in car sales, very hands on training and
key. Engage customers with an interactive                                                       support for the first thirty days. We train
experience that encourages them to contact      Question 3: How can you market your             them on the process, phone scripts and
your dealership.                                website?                                        objection guides. They get paid on units,
Courtesy: Our goal is to create more                                                            gross, with higher percent when CSI is
leads, so we have many different ways to        Herb Chambers: Your URL must simply             higher.
gather customers contact information to         become part of all your other traditional       Sheehy: We like rookies and train them
increase our conversation ratio to ensure       forms of advertising. It needs to be on all     from scratch on the Internet process for
more high quality leads for less cost. Our      print ads (including help wanted), radio,       two days, then continue onsite training,
current conversion ratio is 21 percent.         TV (if applicable), stationary, business        and we work deals with them in the store.
Sheehy: Searchable inventory, pictures          cards, doors, etc. Everywhere, period.          Basically, lead by example. We pay salary,
of new and used vehicles, model reviews,        Tasca: We have included it in all of our        commissions, plus incentive bonus.
payment calculator, MSRP and invoice            traditional marketing: billboards, TV, radio
price, comparisons, trade-in information,       and print. We also do online marketing          Question 5:    What is your process
phone and location information.                 including email marketing, banners on           for handling leads? What is the most
                                                high traffic sites, and we dominate the          important part of the process?
Question 2: Is the Web a good marketing         search engines. We also market to large
medium?                                         companies by offering them our ‘fleet            Herb   Chambers: Email, phone and
                                                purchase program’ and to OEM suppliers          showroom. The bottom line is to sell the
Herb Chambers: On a cost per sale basis,        by emailing them about our ‘vendor              appointment and follow up until they buy.




  16                                                                                                    www.autosuccess.biz
Tasca: We automate a lot of the emails for      them as well as we handle our Internet          yet diminishing part of our electronic
a 90-day period so our people can spend         leads.                                          marketing mix. Our website is definitely
more time on the phone and selling cars.        Courtesy: We handle our phone and               our best source of leads, the manufacturers
Our main focus is to set an appointment.        Internet leads in our BDC/Internet              second and third party last.
Red McCombs: Internet sales force               department, and leads are logged into our       Tasca: We do not use any third party
receives the leads and then makes contact       CRM system, which automatically sends           leads. They have a close percentage of
within 30 minutes. Internet coordinators        out multi-media emails over a 90-day            two to five percent. Our website leads
continue with phone calls until they set an     follow-up cycle. The goal and the process       cost a lot less and have an average closing
appointment.                                    are the same, to set an appointment.            percentage of 20 percent.
Courtesy: I personally distribute them or       Sheehy: We are going to apply a similar         Red McCombs: I would like to cut them
automatically ‘round robin’ the leads in        process to our phone leads.                     out, but can’t as of now. We have reduced
my absence. The most important part is                                                          our dependency on them, and our website
the phone to sell the appointment and to        Question 8: Do you do any email                 leads have a much higher closing ratio and
follow up via email and phone.                  marketing?                                      lower cost per sale.
Sheehy: Speed and answering the                                                                 Courtesy: I don’t like them, but we still use
questions leads ask.                            Herb Chambers: Yes, regularly. It is            them. Our website generates the majority
                                                results and cost effective if done properly.    of our leads, and they have three to four
Question 6:   How do you handle                 Tasca: We have hundreds of pre-packaged         times higher closing ratios. Eventually, we
pricing? What is your gross profit?              multi-media emails that we send for             will probably get rid of all of them. We are
                                                different times of the year. It is the same     our own buying service in our market.
Herb Chambers: We make our program              as direct mail except there is no cost for      Sheehy: Our best source is our own site.
more about the process and product than         the mail and customers can build a car and      We want to reduce third party leads to as
the price. Our average gross is higher          apply for credit right from the email we        few as possible, They cost more and our
than the showroom floor in the stores with       send them.                                      website has three times higher closing
Internet sales people in place for more         Red McCombs: Yes, lots. It is the cheapest      percentage.
than six months.                                way to reach the masses. Every week we
Tasca: We have a menu pricing policy.           run a different special and send it to all of   Bonus Question: What do you think the
We have a fair profit built into every           our leads generated from the website and        future holds?
vehicle. Our pricing policy is the same         third party lead generators.
for a showroom customer. We pay on CSI          Courtesy: Yes. It helps us attract more         Herb Chambers: We have gone from
rather than gross profit.                        customers for a lot less cost than other        selling 100, 200, 300 and, now, up to
Red McCombs: Mystery shop all of our            types of marketing and within a few clicks      600 units a month. If the trend continues
competitors, and we ask for a fair profit.       thousands of people can know about our          the future looks great.
Our average is $1,850 per unit.                 weekend sale.                                   Tasca: The dealers that sell a lot of cars
Courtesy: We don’t sell price. We sell our      Sheehy: Mostly broadcast emails on              and satisfies customers will win. In order
process, people and products. Also, our         specific incentives or rebates. We are able      to grow and stand out from the competition
goal is to generate an appointment and          to capture some deals where people were         a dealer needs to be successful on all
then we sell the car on the showroom. Our       not ready to buy now, and it does not cost      fronts: showroom, Internet, phone, BDCs,
gross is $2,200 a copy, which is the same       us any money.                                   service, parts and body shop. The Web
as our showroom average gross profit.                                                            plays a role in everything.
Sheehy: We give the exact price of what         Question 9:    What numbers do you              Red McCombs: We have more than
they are looking for then below that give a     measure?                                        doubled our Internet business in the last
lower price alternative. Our average gross                                                      90 days and believe that more people are
is $1,700.                                      Herb Chambers: Everything, it would             using the Web to do business. The future
                                                be easier to write what we don’t measure.       looks promising.
Question 7: How are you handling your           For example, we measure lead volume,            Courtesy: Dealerships will start shifting
phone leads?                                    response time, closing percentage, cost         more of their advertising to market where
                                                per lead and cost per sale.                     the majority of customers start their
Herb Chambers: We have a similar                Tasca: Total leads, appointments, sales,        purchase process, online. Until then we
process for our phone leads. Our main           deliveries, cost per lead and cost per sale.    will continue to take advantage of the fact
goal with both types of leads is to sell        Red McCombs: Leads, closing percentage,         that a lot of our competitors don’t. We use
the appointment and to follow up until          sales: daily, weekly and monthly.               the Web to sell more cars for less money.
they come in. We also capture their email       Courtesy: Response time, appointment            Sheehy: Turning our Internet departments
address to automate some of the follow-up       percentage, show percentage, closing            into BDCs where we have dedicated
so each person can handle more leads.           percentage, average gross and CSI.              people and processes to handle all types
Tasca: All of our incoming phone calls          Sheehy: We measure everything by                of inbound leads along with follow-up,
run through our Customer Relationship           source, by store and by sales person.           renewals and other marketing activities.
Center along with our Internet leads. It is a
very similar process, and it works great to     Question 10: What is your view of third         Patrick Luck is the Editor and Publisher
combine them.                                   party lead providers?                           of AutoSuccess Magazine. He can be
Red McCombs: Not very well. They                                                                contacted at 866.802.5603, or by email
would probably improve if we handled            Herb Chambers: A somewhat necessary,            at pat@autosuccess.biz.




january 2004                                                                                                                          17
marketing solution
                                                                                                                                     Sean WolfiWolfington
                                                                                                                                          By Sean ngton

                                                                                                         Herb Chambers
                                                                                                Sells 600 Vehicles Online
                                               The following is                       to do to reach their goals. Some parts of       sales experience and with great phone and
                                               a summary of a                         the strategy they created and what you may      follow-up skills. They are on the same pay
                                               case study on Herb                     want to customize for your dealership are       plan as the other traditional sales people.
                                               Chambers.                              listed.
                                                                                                                                      7. Process: Herb Chambers defined their
Herb Chambers sells approximately                                                     2. Technology:        Herb      Chambers        Internet process for handling opportunities
600 units per month from their Internet                                               implemented a complete digital marketing        by mapping out their process for turning
department alone.                                                                     system which included a custom website          leads into appointments and sales. They
                                                                                      that promotes all of their profit centers        are selling approximately 600 additional
Digital marketing strategy generates the                                              and drives more foot, phone and Internet        units per month at a higher gross profit than
majority of their phone traffic to their                                               traffic. The system includes a prospect          some of their showrooms because they
dealership.                                                                           management tool that automates a lot of         do not sell price, they build value in the
                                                                                      the email activity so their team has more       dealership, people and product, and, at the
Herb Chambers drives more revenue to
                                                                                      time to use the phone and to sell cars.         same time, they highlight the advantages
the service and parts department through
                                                                                      The most important dynamic technology           of doing business with them rather than the
eMarketing.
                                                                                      they use are the multi-media buzzmails          competition.
                                                                                      that help drive traffic through bulk email
1. The strategy: Herb Chambers began
                                                                                      marketing and selling new prospects and         8. Pricing: Herb Chambers realizes that
by getting together with their leadership
                                                                                      by automating the follow-up of their            selling cars on the Internet is not about
team to create an eCRM business plan
                                                                                      customers throughout their ownership            giving cars away.
that outlined their goals and strategy. This
                                                                                      cycle. Lastly, they have offices equipped
strategy boot camp was facilitated by their
                                                                                      with a PC, printer and digital camera for       “The mistake some dealers make is that
digital marketing vendor, and it helped
                                                                                      taking pictures of inventory.                   they sell the price rather than building
them create a detailed blueprint and action
                                                                                                                                      value…in the end, if we do not ask for a
plan that outlined everything they needed
                                                                                      3. They purchased website addresses             fair profit it is impossible to get one,” said
                                                                                      (URL/ISP): They purchased the URLs and          Jay Gubala. “We put together a pricing
                                                                                      purchased all of the names they thought         philosophy that is competitive but that also
                                                                                      customers might type into their browser         preserves our gross profit.”
                                                                                      to find them. Here are some examples for
                                                                                      you to buy: www.dealernamebrand.com,            9. Training: They partnered with a
                                                                                      www.townbrand.com.                              company that initially trained everyone
                                                                                                                                      in the department on the phone, follow-up
                                                                                      4. Marketing      their website: Herb           and sales skills they needed to increase
                                                                                      Chambers conducts bulk multi-media              appointments, sales, gross profit, CSI and
                                                                                      email campaigns, and they are ahead of          loyalty.
                                                                                      their competitors on the search engines.
                                                                                      They also add their URL to all traditional      “The key to the training was to develop
                                                                                      media. They put it everywhere their name        their skill and confidence and this is
          Heard the buzz? Find out for yourself what it’s all about. CarChip
                                                                                      is, including their current documents,          accomplished through repetitive practice,
          is “a useful tool for the professional,” says one service manager.          TV, radio, print ads, dealership collateral     videos and hands on experience.”
          “Technicians dealing with intermittent issues can program CarChip to
          monitor suspect circuits, and then return the vehicle to the customer.”
                                                                                      material, business cards, repair orders,
                                                                                      license plate brackets, billboards, etc.        In addition, Herb Chambers has a very
          It’s affordable, so there’s no need for large deposits. And once
          your customers find out about it, they may very well want one for                                                            successful nine-day training program for
          themselves! Attractive packaging and full-color point-of-sale display       5. Referral service: Herb Chambers goal         new hires.
          help make the sale—adding to YOUR profits!
                                                                                      was to reduce their expenses for third party
          Monitor any 4 out of 23 possible engine parameters including:
                                                                                      lead providers and increase their leads/        10. Measure/manage: “You cannot manage
          • RPM & engine load     • Fuel trim          • Intake air temp
          • Throttle position     • Battery voltage    • Intake manifold pressure     sales from their own site which costs less      what you cannot measure. We measure
          • Fuel pressure         • Timing advance     • Air flow rate                 and have a higher closing percentage. They      everything and hold regular meetings to
          • Fuel system status    • Coolant temp       • Oxygen sensor voltage
                                                                                      eliminated the providers that were not          discuss our progress and ways to improve.
          Plus trouble codes, freeze-frame sensor readings, speed, distance,
          and accels & decels. Up to 300 hours of trip data—all for just $179!
                                                                                      effective and replaced them by increasing       Reports give us the information we need,
          Plugs instantly into OBDII port. Download to PC for                         their leads from their own site. In the end,    the number of leads by source, response
          detailed analysis and graphing.
                                                                      ner
                                                                                      they have more leads and sales and the          rate and time, appointment percentage,
          Ask how YOU can become                                   Win                majority are from their site, so they cost a    show percentage, closing percentage, cost
                                                                                  d
                                                                             eere
          an authorized reseller!                                       Engin duct
                                                                   Bestew Pro
                                                                                      lot less and the closing percentage is three    per lead, cost per sale, etc,” said Gubala.
                                                                     N
                                                                                      times higher.
                                                                           TM
                                                                           ™
AUS0310




                                                                                      6. People: Herb Chambers has dedicated          Sean WolÞngton is an Owner of BZ
                                           Davis Instruments                          Internet sales people at every dealership       Results.com. He can be contacted at
                                   3465 Diablo Ave, Hayward, CA 94545
                                   866.297.3152 • www.carchip.com                     who sell the appointment and vehicle. They      866.802.5753, or by email at
                                                                                      recruited people with previous automotive       swolÞngton@autosuccess.biz.


          18                                                                                                                         stop by www.autosuccess.biz
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profit solution
                                                                                                     Scott Scott Joseph
                                                                                                        By Joseph



                          What Is Your Growth Strategy for 2004?

                                        The growth strategy increases your                           with your customers through
                                        average gross per unit because:                              direct mail to maintain a
                                            • It attracts trafÞc that buys the                       positive relationship and to
                                                way you sell. Therefore these                        motivate each customer to
There are only three ways you can               buyers are more trusting and                         buy now.
grow your business in 2004 and only             negotiate less.                                •     Running special events such
three:                                      • It brings in buyers who expect                         as “closed door sales,” limited
    1. Increase your number of                  to Þnance through your                               pre-sale prices and so on.
        customers                               dealership – which increases                   •     Price inducements
    2. Increase the average gross per           your Þnance penetration.
        deal                                • Over 40% of the trafÞc                         Wow, look at what can happen
    3. Increase the frequency                   generated will have clear                     when this growth strategy is
        of repurchase – get more                titles. This makes it much                            optimized!
        residual value out of each              easier for you to Þt the
        customer                                customer into the payment                Just look at the math. Let’s keep
                                                they want without giving up              it simple and say you sell 100 cars
Recently, we introduced a completely            gross.                                   a month - that equals 1,200 a year.
new direct mail strategy to our                                                          Let’s say you average $2,000 gross
customers that focuses on all three     To increase your repurchase frequency,           per unit and your average customer
and delivers an incredible return       the growth strategy focuses on:                  buys once every three years (.33 times
on investment. I’m talking about a          • Communicating personally                   a year).
growth strategy that increases your
customer base, increases the average
dollar amount each customer spends
with you and increases the frequency              Increase            Increase your            Increase the                  Total gross
your customers buy from you.                      your # of           average gross             repurchase                    per year
                                                 customers               per unit                frequency                  per customer
How does this unique J&L Growth                                                                      .333
        Strategy work?                              1,200         x       $2,000         x                             =       $799,200
                                                                                                (current one car
                                                   (current)             (current)
                                                                                               every three years)
To grow your number of customers
you sell each month the growth                 10% Increase           10% Increase            10% Increase                 33.1% Increase
strategy does three things:
     1. Increases the amount of                     1,320                 $2,200                  .366                        $1,062,864
                                                 (10 more units   x   ($200 more gross   x (customers now buy =                 ($263,644
         quality ßoor trafÞc in your
                                                   per month)            per month)          a car every 2.73 years)          in extra gross)
         dealership
     2. Increases your customer                    (what if)              (what if)                (what if)                    (what if)
         retention rate                         15% Increase          20% Increase             33% Increase                83.172% Increase
     3. Increases your closing
         percentage
                                                    1,380                 $2,400                  .442                        $1,463,904
                                                 (15 more units   x   ($400 more gross   x (customers now buy =                 ($664,704
                                                   per month)            per month)          a car every 2.26 years)          in extra gross)




                                                                                      www.jandlmarketing.com
ADVERTISEMENT
profit solution
                                                                                              Scott Scott Joseph
                                                                                                 By Joseph




What’s the overall Growth Strategy          Testing, measuring and analyzing          This powerful growth strategy teaches
           philosophy?                      lets you determine with pinpoint          people how to make the most out
                                            accuracy, what your market wants and      of their most valuable asset. They
The Growth Strategy makes use of a          doesn’t want.                             see Þrst hand that if the mailing
lot of simple ideas that are profoundly                                               lists are accurate and effectively
powerful and easy to use. This              J&L Marketing is the only company         marketed, they generate more sales
Growth Strategy philosophy is proÞt         who has the capability to test every      and make more money than any other
enhancement through marketing               element of your direct marketing          advertising approach has ever done or
leverage.                                   efforts. We’ve invested a small           will ever do.
                                            fortune and developed a program to
    What is marketing leverage?             determine exactly what works best for     Make the decision right now to do
                                            you.                                      something for your dealership, your
Marketing leverage is getting                                                         sales people, your managers and for
phenomenal better results for the            Where can you go to Þnd mailing          you that will produce the “deÞning
same amount of money and effort              lists that generate a lot of quality     experience” our other customers have
you are currently spending. One list          trafÞc and support this Growth          already encountered - the type of
or offer could out pull another by as                     Strategy?                   experience that will transform your
much as 5 to 10 times. The ad costs                                                   business performance and wealth
you exactly the same, but you’re            This Growth Strategy utilizes as          from this day forward.
getting much better results with a          many as three completely different
different list or offer. That’s leverage.   lists. Because there could be several
                                            unique lists, managing these different
 How testing will help you leverage         lists and how they are used is critical
         your marketing?                    to maximize your potential.

You’ll never know if you’re                 Because of the highly competitive
maximizing your leverage until you          nature of our business, I will not
test all the factors that matter:           write today exactly what lists we use.
     • Test one list against another.       However, if you call my ofÞce and
     • One mail piece against               ask for Lisa Wilson at 866.856.6782
          another.                          you’ll discover exactly where we get
     • One headline against another.        these lists, how we’ll utilize them
     • One offer against another.           for your store and why they are so
     • One day of the week, month           effective.
          or year against another.
     • One market (geographically)          The dealerships that immersed             Discover exactly where we get these
          against another.                  themselves fully in my proprietary        growth strategy lists, how we utilize them,
                                            mindset and methodology stated it         and why they are so effective, right now.
You don’t have the right to tell the        was the “deÞning experience” that         Call my ofÞce today at 866.856.6782
market what it wants. You have to           transformed their business performance    from 8:00am to 6:00pm EST and ask for
ask the consumer what they want.            and wealth from that day forward.         Lisa Wilson.




www.jandlmarketing.com
f&i solution
                                                                                                 GeorgeGeorge Jackson
                                                                                                     By Jackson



                               How to Forecast Your Success
                       The best way to          product. Add these together for your total       Every F&I forecast must be attainable,
                       grow individually,       F&I department income.                           adaptable       and    easily    monitored.
                       personally      and                                                       Penetration levels and income averages
                       financially is to         Step 6.                                          can be monitored daily, if need be, and
                       set goals with a         Divide the total F&I department by the           are the best means to measure the success
complete and thorough F&I forecast. To          forecasted units in Step 1 to get the F&I        of the department. If you are achieving
say you want to do better and make more         PRU. This is the true F&I forecast, as PRU       your projected penetration levels and
money than last year is not good enough.        is easier to predict and control than total      income averages, then it is mathematically
(Neither is saying you want to generate         dollars.                                         impossible not to achieve your forecasted
a certain dollar amount of F&I income.)                                                          PRU. The only possible reason you would
A forecast should never be dollar based         Here is how you would apply these steps          not reach the total dollar goal is because
because it does not take into consideration     and complete an annual forecast.                 the dealership has simply not sold enough
the number of units sold, it is incomplete.                                                      units. If the unit forecasts hold true, then
Here are six simple steps to setting an         Step 1: Forecasted units                         department income will eventually take
annual forecast for the coming year.                      New Cars                    1200       care of itself.
                                                          Trucks                      1500
Step 1.                                                   Used Cars                   1300
Find out how many units each sales                        Total Units                 4000
manager is forecasting. Base your forecast
on these numbers.
This is the one way
to predict total F&I                    Step 2                          Step 3                   Step 4                    Step 5
department income                     Presentation                  Contracts &                  Average                 Total F&I
and income per                           Levels                     Policies Sold                Income              Department Income
retail unit (PRU).      Finance            70%                  (4000 x 70%) = 2800               $500         (2800 x $500) = 1,400,000
Step 2.                   Credit Life          30%              (2800 x 30%) = 840                $200         (840 x $200) =     168,000
Forecast penetration      Dsability            25%              (2800 x 25%) = 700                $300         (700 x $300) =     210,000
levels for finance         VSC                  50%              (4000 x 50%) = 2000               $500         (2000 x $500) = 1,000,000
and       all     F&I     GAP                  30%              (2800 x 30%) = 840                $250         (840 x $300) =     252,000
products sold in the      Etch                 60%              (4000 x 60%) = 2400               $100         (2400 x $100) =    240,000
department. Base          Maintenance          20%              (4000 x 20%) = 800                $150         (800 x $150) =     120,000
credit life, disability                                                                                                        $3,390,000
and GAP on total                                                                                         PRU = (3,390,000/4000) = $847.50
finance units and all
other products on total retail units.

Step 3.                                         The penetration levels and income averages       George Jackson is the Director of
Calculate the number of finance deals,           shown above are simply for demonstration.        F&I Training for American Financial &
service contract policies, credit life and      Many factors can and will influence both          Automotive Services, Inc. He can be
disability, GAP policies, etc. by applying      for a particular dealership or state, so your    contacted at 866.280.0301, or by email
the penetration levels from Step 2 to the       numbers should and will be different.            at gjackson@autosuccess.biz.
forecasted units in Step 2.

Step 4.
Establish or calculate the average income
the F&I department earns every time it
sells a product or finances a vehicle. For
example, $100,000 in reserve on 250
finance deals equals $400 average reserve
per finance deal ($100,000/250 = $400).
$60,000 in service contract income for 100
policies equals $600 per service contract
sold ($60,000/100 = $600). Do this for
every product that you offer.

Step 5.
Multiply the contracts or policies from
Step 3 by the income averages established
in Step 4 to get your total dollars for each


  22                                                                                            stop by www.autosuccess.biz
marketing solution
                                                                                                            Jeff Fishel
                                                                                                               By Jeff Fishel



                         The Effectiveness of Jingle-tising
                      Whether          you     positioning statements, or more precisely,     that is catchy and hard to forget.
                      choose radio, TV,        what separates you from the other dealers
                      the Internet or print    in your market.                                Jingle-tising is an excellent way to
                      as your advertising                                                     elevate your specific messages above
                      medium,           all    With jingle-tising, however, the main          the cacophony of ordinary daily
automotive advertising must fall under one     positioning or branding messages are           advertising. By design, jingle-tising can
or more of these categories: positioning,      contained within the tags of the jingle,       distinguish you from your competitors
product, price and promotions.                 while the merchandising and event offers       while simultaneously providing you with
                                               are inserted over the music bed, or donut      limitless elasticity in achieving your
Positioning (branding) differentiates your     segment. This is the reason jingle-tising is   advertising objectives.
dealership from the competitors in your        so effective as a means of delivering your
marketplace. Product and price consists        various advertising messages. Its power
of your merchandising efforts. Promotions      stems from the flexibility of the music
include your advertising events or             itself.
campaigns with ‘offers’ and ‘time-limits’
both designed to create urgency in your        Jingle-tising will supplement your
market.                                        merchandising campaigns and help
                                               to promote your one to five day sales
Some dealers and their advertising agents      events. Regardless of the time frame or
combine their positioning messages with        format of your jingle-tising campaign, its
their product and price merchandising and      specific melody and message will virtually
even with their promotional event offers.      guarantee your dealership’s positioning in
This combination of branding and retailing     your marketplace and can, many times,
has become known as ‘brand-tailing’ and        linger in the minds of those who heard it      Jeff Fishel is the National Sales
can be an ideal way to obtain successful       for quite some time.                           Director for FishMarketingOnline.net,
automotive advertising results.                                                               FishMarketingOnline.com and
                                               A full-sing jingle ‘sings’ your positioning    IndependentAutomotiveMarketing.com.
There are many ways to brand-tail              statements right into the minds of your        He can be contacted at
including the select use of targeted tag-      potential car buyers, leaving a message        jeff@Þshmarketingonline.net.
lines, uniform graphics, unique print
design and logos. An especially effective
way to mix the advertising paradigms is by
using jingles. You can call this mixture of


                                               Taylor Techniques, Inc.
brand-tailing with jingles, ‘jingle-tising’.

Nothing will enter the minds of the buyers
in any market better than appending your
specific advertising message to a musical
melody. For example, in your mind, finish         AUTOMOTIVE SALES AND MANAGEMENT TRAINING
the remainder of this branding message:
                                               The Hottest In-house Trainer in the Country!
“PLOP, PLOP… FIZ, FIZ.....!
                                                   • DO YOU WANT IN-HOUSE, HANDS ON
For those of you who filled in the above            TRAINING THAT WORKS?
blanks with, “Oh what a relief it is!” you
have just demonstrated the effectiveness           • DO YOU WANT BIGGER GROSSES?
of jingles. This positioning statement
piggy-backed onto a musical melody                 • DO YOU WANT YOUR SALES FORCE TO
will forever be etched into our collective         PROSPECT MORE?
mind’s-eye right along with the product it                                                                            Fran Taylor
represented, Alka Seltzer.                         • HOW WOULD IT MAKE YOU FEEL IF YOUR                                is the President and
                                                                                                                           CEO of Taylor
                                                   SALES PEOPLE SOLD AT LEAST ONE CAR A                                Techniques, Inc. He
This is a perfect way to get your message          DAY?                                                                can be contacted at
into the minds of the car buying public in                                                                            MrFranTaylor@aol.com
your marketplace.                                  CALL THE KING OF PROSPECTING!

                                                   866 873 0041
With jingles, the music does the work. The
unique melody sticks in people’s heads,                                                                               Call Today!
and the words come along attached to the
specific melody. These words consist of
lyrics describing your specific advertising

january 2004                                                                                                                          23
leadership solution
                                                                                                               Joe Verde
                                                                                                                 By Joe Verde



                               A Word From the Coach, Part 1
                      “I’m just a plow          up or calm others down when things get         • And, in too many dealerships, when
                      hand from Arkansas,       a little out of hand. In most dealerships,     things are going real good, management
                      but I’ve learned          the thinking is just the opposite of Bear      is so hyped on themselves they forget
                      to hold a team            Bryant’s.                                      where the sales actually come from
                      together. How to lift                                                    – each sales person talking with a
some men up, how to calm others down,           In most dealerships.                           customer. And, too, when a sales person
until finally they’ve got one heartbeat           • When things go bad it’s always the          starts being paid well for doing well it’s,
together - a team. There’s just three things     sales people’s fault. There’s never even      “we pay these guys too much.”
I’d ever say...                                  a thought that it could possibly be the
                                                 coaching team. After all, you can’t           When things are really, really good,
  1. If anything goes bad – I did it.            blame management because Johnny               too many managers try to steal all the
  2. If anything goes semi-good – then           can’t close a sale or Susie doesn’t do        thunder for that job well done.
  we did it.                                     her follow-up.
  3. If anything goes real good – then                                                         One of the worst people managers
  they did it.                                   And you surely can’t blame                    is one that keeps repeating, “I pride
                  ...that’s all it takes for     management when sales people aren’t           myself on what I’ve done.” They never
people to win football games for you.”           motivated or when they’re working             bother to ‘pride’ their sales people on
Bear Bryant on management…from                   their own deals or when they don’t take       doing the job. Maybe, if they did their
October MNL 2003.                                a demo ride or when they can’t get the        dealership wouldn’t go from, say, the #8
                                                 paperwork right.                              store in the country to a recording that
Success in today’s market requires                                                             says “We’re sorry, this # is no longer in
teamwork and great teams require great           In real life, of course, it’s management’s    service, and there is no new number.”
coaches. Without a great team that works         fault that the sales people can’t sell,
together and without a great coach to make       nobody taught them how to sell                In real life, managers in the dealership
it happen, you won’t get your dealership         properly. And they aren’t motivated           probably do make it happen when you
out of the average rut.                          if some of the things you do in the           have that great month or year, and you
                                                 dealership de-motivate your sales             get the credit, at least when you look in
There are tons of sales people who have          people. Plus, management hires                the mirror.
worked hard to increase their sales. They’ve     inexperienced people who’ve never
taken it upon themselves to succeed and it       been successful, who weren’t motivated        But in that monthly kick off meeting,
shows. But they’re just one member on            to begin with.                                the best coaches turn all that around and
their sales team. And at many dealerships,                                                     say “Congratulations,” to those who
there are only a handful of sales people who     Sales people are working their                followed directions and took the ball,
are working hard to improve.                     deals their way, because that’s what          ran with it and scored the touchdown.
                                                 management has allowed to happen.
The bad news is the rest of the selling team     It’s a lot of trouble to teach, monitor      Instead of doing everything the way the
isn’t as interested, doesn’t follow your         and require sales people to work their       manager before you did it, why not make
game plan and aren’t selling nearly as many      deals the right way, instead.                a list of the traits of a great coach. It’s
vehicles as they could. The attitudes of                                                      really easy; just think of the top coaches
these sales people not only hurt their sales,    And sales people don’t do their follow       in professional sports, what do the great
it also hurts your top sales people, too,        up because management doesn’t require        coaches do to make their team the best?
and literally can destroy your dealership’s      that every sales person do follow up
chance of real, long-term success.               with every customer. Besides, if they        Try this, put words like train, lead,
                                                 required follow up, first they’d have to      motivate, patience, goals, practice, direct,
It’s the same in practically every dealership    teach the sales people to do follow up.      require, proud, respect, fair, driven, loyal
around the country. In a group of ten sales      So management would have to learn            and consistent on your list. What else?
people, they usually have one or two good        how to follow up customers, too.             Also, almost everyone reading this could
ones, one or two okay sales people, four                                                      use a few good tips on how to pull all this
or five below average sales people and            • Unlike the ‘Bear’, in most dealerships,    leadership stuff off, so get together with the
a couple who should be put out of their          when things go semi-good, average            other managers at your next meeting and
‘selling’ misery right away.                     managers are the first to let everyone        discuss how to be a great coach – it will
                                                 know how great they worked those             take your dealership to the next level.
What’s the missing link? Good coaches.           deals and about how many more sales
Why is there no team spirit in so many           they could have made if it weren’t for       Next month, we will cover more ideas for
dealerships across the country, no ‘esprit       some of the worthless sales people they      you and your management team to discuss.
de corps’ and no common will to be the           work with.
best group of sales people they can be?                                                       Joe Verde is the President of The Joe
Unfortunately, it’s always management.           Let’s get a grip here, too, and try to       Verde Group. He can be contacted
                                                 remember who hired all those average         at 866.429.6689, or by email at
Most managers weren’t taught how to              and below sales people you complain          jverde@autosuccess.biz, or visit
coach properly so they can lift some people      about all the time.                          www.joeverde.com.


  24                                                                                contact us at www.autosuccess.biz
Service Advisor Training                            Come by and see Jeff at

Presented by...                                     NADA
                                                  Convention booth #4175!

                                                Also, come listen to Jeff speak at
                                               these convention dates and times:

                                                 Sunday 2/1, 2:15pm - 3:30pm
                                                 Monday 2/2, 8:30am - 9:45am
                                                Monday 2/2, 10:30am - 11:45am
                                                Tuesday 2/3, 11:00am - 12:15pm

                                                      Come early to ensure
                                                        you have a seat!
 Jeff Cowan




                                         All Skill Levels
                                         • Do you want to Increase Customer
                                         Paid Labor Sales and Parts Sales?
 I will turn your Service Clerks into    • Do you want to Increase Customer
 SELLING Service Advisors. We deliver    Satisfaction Scores?
 the most Intense Powerful Two Day       • Do you want to Increase Customer
 Workshops You or Your Service           Retention?
 Advisors Have Ever Experienced!         • Do you want to set up a Non-
                                         Confrontational Complete Selling
                                         System and Culture?
 We also deliver our World Class         • Do you want to learn to Sustain
 Training In-House On Your Service       Growth?
 Drive or on DVD. We have recently re-   • Do you want to learn how to Control
                                         Your Customers, and your Workday?
 recorded our DVD’s. They now offer
                                         • Do you want to learn how to Walk
 40% More Content and are available      Around Every Car, Every Time R ?
 in Spanish.                             • Do you want to learn the Sit, Flip,
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                                         • Do you want to Become a “Full
                                         Service Promise” R dealership?
      ASK FOR SUSAN FOR YOUR FREE
        DEMO DISK - RESERVE YOUR          In-house on your service
     SEATING TODAY! SPACES LIMITED         drive, offsite or on DVD




 866.265.5552
leadership solution
                                                                                                      BrianBrian Tracy
                                                                                                          By Tracy



                                                            Managing Your Time
                      Perhaps the greatest     a cellular telephone. It is something that     balanced with family and personal goals.
                      single problem that      you use so that you can get more done in
                      people have today        a shorter period of time and eventually        The third type of goals is your personal
                      is ‘time poverty’.       be paid more money. You must learn             development goals. Remember, you can’t
                      Working      people      that time management is not a peripheral       achieve much more on the outside than
have too much to do and too little time        activity or skill. It is the core skill upon   what you have achieved on the inside.
for their personal lives. Most people          which everything else in life depends.         Your outer life will be a reflection of
feel overwhelmed with responsibilities                                                        your inner life. If you wish to achieve
and activities, and the harder they work,      In your work or business life, there are       worthwhile things in your personal and
the further behind they feel. This sense       so many demands on your time from              your career life, you must become a
of being on a never-ending treadmill           other people that very little of your time     worthwhile person in your own self-
can cause you to fall into the reactive/       is yours to use as you choose. However,        development. You must build yourself
responsive mode of living. Instead of          at home and in your personal life you can      if you want to build your life. Perhaps
clearly deciding what you want to do, you      exert a tremendous amount of control           the greatest secret of success is that you
continually react to what is happening         over how you use your time. And it is in       can become anything you really want
around you. Pretty soon you lose all           this area that I want to focus.                to become, to achieve any goal that you
sense of control. You feel that your life                                                     really want to achieve. But in order to do
is running you, rather than you running        Personal time management begins with           it, you must go to work on yourself and
your life.                                     you. It begins with you thinking through       never stop.
                                               what is really important to you in life.
On a regular basis, you have to stand          And it only makes sense if you organize        Once you have a list of your personal and
back and take stock of yourself and what       it around specific things that you want to      family goals, your business and career
you’re doing. You have to stop the clock       accomplish. You need to set goals in three     goals, and your self-development goals,
and do some serious thinking about who         major areas of your life.                      you can then organize the list by priority.
you are and where you are going. You                                                          This brings us to the difference between
have to evaluate your activities in the        First, you need family and personal goals.     priorities and posteriorities. In order to
light of what is really important to you.      These are the reasons why you get up           get your personal time under control,
You must master your time rather than          in the morning, why you work hard and          you must decide very clearly upon your
becoming a slave to the constant flow of        upgrade your skills, why you worry about       priorities. You must decide on the most
events and demands on your time. And,          money and sometimes feel frustrated by         important things that you could possible
you must organize your life to achieve         the demands on your time.                      be doing to give yourself the same amount
balance, harmony and inner peace.                                                             of happiness, satisfaction and joy in life.
                                               What are your personal and family              But at the same time, you must establish
Taking action without thinking is the          goals, both tangible and intangible? A         posteriorities as well. Just as priorities
cause of every failure. Your ability to        tangible family goal could be a bigger         are things that you do more of, sooner;
think is the most valuable trait that you      house, a better car, a larger television       posteriorities are things that you do less
possess. If you improve the quality of         set, a vacation or anything else that costs    of, later.
your thinking, you improve the quality of      money. An intangible goal would be to
your life, sometimes immediately.              build a higher quality relationship with       The fact is your calendar is full. You
                                               your spouse and children, to spend more        have no spare time. Your time is
Time is your most precious resource. It        time with your family going for walks or       extremely valuable. Therefore, for you
is the most valuable thing you have. It        reading books. Achieving these family          to do anything new, you will have to stop
is perishable, it is irreplaceable, and it     and personal goals are the real essence of     doing something old. In order to get into
cannot be saved. It can only be reallocated    time management and its major purpose.         something, you will have to get out of
from activities of lower value to activities                                                  something else. In order to pick something
of higher value. All work requires time.       The second area of goals is your business      up, you will have to put something down.
And time is absolutely essential for the       and career goals. These are the ‘how’          Before you make any new commitment of
important relationships in your life. The      goals, the means by which you achieve          your time, you must firmly decide what
very act of taking a moment to think about     your personal, ‘why’ goals. How can            activities you are going to discontinue in
your time before you spend it will begin to    you achieve the level of income that           your personal life.
improve your personal time management          will enable you to fulfill your family
immediately.                                   goals? How can you develop the skills          If you want to spend more time with your
                                               and abilities to stay ahead of the curve       family, for example, you must decide
Many people see time management as             in your career? Business and career goals      what activities you currently engage in
only a business tool, like a calculator or     are absolutely essential, especially when      that are preventing you from doing so.



  26                                                                                   visit us at www.autosuccess.biz
continued




A principle of time management says            of. So concentrate on working when you         And the final question for you to ask
that hard time pushes out soft time. This      are at work so that you can concentrate on     over and over again is, “What is the most
means that hard time, such as working,         your family when you are at home.              valuable use of my time right now?”
will push out soft time, such as the time                                                     Since you can only do one thing at a time,
you spend with your family. If you don’t       There are three key questions that you         you must constantly organize your life so
get your work done at the office because        can ask yourself continually to keep           that you are doing one thing, the most
you don’t use your time well, you almost       your personal life in balance. The first        important thing, at every moment.
invariably have to rob that time from your     question is, “What is really important to
family. As a result, because your family       me?” Whenever you find yourself with            Personal time management enables you to
is important to you, you find yourself in       too much to do and too little time, stop       choose what to do first, what to do second
a values conflict. You feel stressed and        and ask yourself, “What is it that is really   and what not to do at all. It enables you to
irritable. You feel a tremendous amount of     important for me to do in this situation?”     organize every aspect of your life so that
pressure. You know in your heart that you      Then, make sure that what you are doing        you can get the greatest joy, happiness and
should be spending more time with the          is the answer to that question.                satisfaction out of everything you do.
important people in your life, but because
you didn’t get your work done, you have        The second question is, “What are my
to fulfill those responsibilities before you    highest value activities?” In your personal
can spend time with your spouse and            life, this means, “What are the things that
children.                                      I do that give me the greatest pleasure and
                                               satisfaction? Of all the things that I could   Brian Tracy is the Chairman & CEO of
Think of it this way. Every minute you         be doing at any one time, what are the         Brian Tracy International. He can be
waste during the waking day is time that       things that I could do to add the greatest     contacted at 866.300.9881, or by email
your family will ultimately be deprived        value to my life?”                             at btracy@autosuccess.biz.




 Mark Tewart’s - Guaranteed Program for Success
                                                                                  FREE Newsletter!
                                                                               Go to www.tewart.com
                                                                                & click on newsletter.



   Are you having trouble getting your sales to the next level?
                                        Mark Tewart’s - G.P.S.
                               will get you the results you want or you don’t pay!

 This is not just sales training! We offer total individual and organizational development with an
 emphasis on guaranteed implementation. After our organization has conducted an extensive survey
 of your current results, environment, and your desires for the success of your dealership, our certiÞed
 staff will work with your sales people and managers through various methods to ensure that you get to
 the next level or you don’t pay. We won’t accept every dealership into the Guaranteed Program for
 Success. A lot of dealers say they want greater success but aren’t committed enough to get the results
                                                                                                                                 513.932.9526



 they say they want. If you are committed and have a burning desire to reach another level of sales, gross
 proÞt, customer satisfaction and have a truly professional team...

           Please ask a Tewart representative about the G.P.S. program.




 866.429.6844
january 2004                                                                                                                        27
sales and training solution
                                                                                                    Fran Taylor
                                                                                                       By Fran Taylor



                                               Now Is the Time to Plan
                       Everything    starts    automatically sell more units by using      train and assign them a specific topic that
                       with goals and a        prospecting tools with their name and the   they must train on.
                       plan. Look at what      dealership’s name and phone number on
                       you did last year,      them.                                       This is easy to do. If you think that this is
                       and dissect your                                                    easy, it is. If you think it is hard, it is. Write
dealership in all departments. Look at how     Training should be on a daily basis every   down your plan and stick to it.
many vehicles you sold for each month.         morning. Plan the month on what you
How many sales people did you have to          want to do. Make sure your sales people     Fran Taylor is the President and CEO
sell the amount of vehicles you sold? How      are involved and do part of the training.   of Taylor Techniques, Inc. He can be
much did you spend on advertising each         Post the monthly training schedule so       contacted at 866.873.0041, or by email
month and what kind of advertising did         everyone knows when it is their turn to     at ftaylor@autosuccess.biz.
you use? Are you mixing your advertising
up and doing a promotion each week
instead of twice a month?

Advertising.
It is easy to improve stores if you stick to
the basics. For every sales person you have,
spend $250 a car advertising or $2,500 a
month for that sales person. To deliver 100
units you should spend $25,000 for the
month and have 10 sales people.

Inventory.
You must keep a mixed used car
department for used cars. It is very crucial
to get the vehicles ready within 72 hours.
Dealerships should have at least one of
the top sellers of different models sitting
on their lot. Keep a model for 15 days
then take it back to the auction. Make
sure when you buy these models you
can doctor or spiff them up with sport
stripes, door edge guards, mud flaps, bug
deflectors and other extras. You will not
lose money doing this.

Sales people should be held accountable to
sell at least 10 units a month each and have
a certain average gross. Post your grosses
around the dealership: front-end, back-
end, new and used, and CSI, if possible.
Sales people should be required to have an
appointment a day and mark it down on
an appointment board. The appointment
board ensures that your advertising dollars
are not wasted money.

Look at your past history and add 10
percent to everything: inventory, sales
people, advertising and post grosses,
make your sales people accountable
with prospecting tools and require an
appointment a day.

Your service and parts will automatically
increase by turning used cars faster and
more of them. Your sales people will


  28                                                                                check out www.autosuccess.biz
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w w w . t e r r a s c e n a . c o m • t e r r a s c e n a @ a o l . c o m
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              or call Keith Cooper at 800.527.1984 x8357



            IF YOU THINK YOUR DEALERSHIP IS
            DOING WELL...YOU’RE HALF RIGHT.




Selling cars is ONLY half of it. To make real money in today’s
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Visit our website at www.efgcompanies.com
298.6657

AutoSuccess Jan04

  • 1.
    Get your ownpersonalized Louisville Slugger Baseball Bat free! pg.15 .biz Herb Chambers Sells 600 January 2004 Vehicles Online You Are the CEO How to Forecast PERMIT NO 879 Your Success LOUISVILLE KY Demo Drives for Success PAID Louisville, KY 40202 US POSTAGE Suite 202 PRSRT STD 756 South 1st Street a division of Systems Marketing, Inc.
  • 4.
    manager I N S I D E driventeam operation uccessrevenue automobil 6 The Art and Science of Managing Your Managers solutions Steve Hiatt 7 You Are the CEO Mark Tewart profitprofessional 10 Demo Drives for Success Brian Ankney 11 Sales From the Internet: Search Engine Optimization sales Dennis McDonough 12 May the Forces Be With You Brian Manzella 14 Implementing Change Within Your Sales Team Terry L. Isaac 16 eDealers of the Year: How They Did It Patrick Luck 18 Herb Chambers Sells 600 Vehicles Online Sean Wolfington 22 How to Forecast Your Success George Jackson 23 The Effectiveness of Jingle-tising Jeff Fishel 24 A Word From the Coach, Part 1 Joe Verde 26 Managing Your Time Brian Tracy 28 Now Is the Time to Plan Fran Taylor Cover Image: Herb Chambers, featured this month on pages 16 and 18 A cure won’t just save children. Mary Tyler Moore It will save childhoods. International Chairman These kids live with 4-6 insulin injections daily. Plus, they face the threat of blindness, heart attack, kidney failure and amputation. Their only hope is research. The Juvenile Diabetes Research Foundation is closer than ever to finding a cure. Help us help them. Call 1.800.533.CURE or visit www.jdrfe.org dedicated to finding a cure Psalms 37:3-5 Patrick Luck, Editor & Publisher inventory Success Driven Solutions • pat@autosuccess.biz Trust in the Lord, and do good; so Susan Goodman, VP of Operations you will dwell in the land, and enjoy • susan@autosuccess.biz security. Lindsay Porter, Copy Editor Take delight in the Lord, and he will 756 South 1st Street, Suite 202 • lindsay@autosuccess.biz give you the desires of your heart. Louisville, Kentucky 40202 Courtney Hill, Advertising Services • courtney@autosuccess.biz Commit your way to the Lord; trust in Toll Free: 877.818.6620 Kelley Humkey, Advertising Services him, and he will act. • kelley@autosuccess.biz Facsimile: 502.588.3170 In God We Trust Web: autosuccess.biz Thomas Williams, Creative Director dealer • thomas@autosuccess.biz AutoSuccess 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 or info@autosuccess.biz. Subscription rate is $75 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content, and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. Always confer with legal counsel before implementing changes in procedures. © All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. 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 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 756 South First Street, Suite 202, Louisville, Kentucky 40202.
  • 5.
    Leave nothing tochance 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. SM Visit Experian Automotive at NADA 2004, January 31 – February 3, Las Vegas, Booth #5735
  • 6.
    sales and trainingsolution SteveSteve Hiatt By Hiatt The Art and Science of Managing Your Managers To get your team these meetings are designed to do that. take care of this for you. They want the team on the right track Once these meetings become normal, to succeed. We aren’t always too subtle in you have to set the your managers start to speak up and ask these meetings and the managers really get course with your questions or even challenge. Some of the into keeping everyone accountable. managers. As an best ideas and management strategies can owner, GM or GSM, you have to be willing come out of these types of forums. Steve Hiatt is the General Sales to be involved in setting the course if you Manager of Hiatt Pontiac GMC, Hiatt want to have specific results. You can also hold people accountable Outlet and Hiatt of Auburn. He can be publicly for what they agreed to or their contacted at 866.265.5616, or by email The people you hire for sales management assigned goals. Many times other managers at shiatt@autosuccess.biz. and finance are often self-starters, that is why you hired them in the first place. These team members are often not interested in correction, they are usually giving it, which makes coaching them harder. It is your job to get everyone on the same page. Steps to keep your team on track: Have a plan. Have any plan, as long as it is written down and measurable. Know what you want from the team management, and be prepared to tell them specifically what you want. Your managers will run their own course without you having something specific for them. Express it. Let the management team know what you expect from them. Give them results you will demand. Whether units, gross, or employee retention, if it isn’t written for them don’t expect them to know. Adapt and adjust. Don’t just accept the results or the feedback. Use it for change. Figure out what is going right or wrong and then plan activities to change the results. Have a consistent tool for measuring; it can be the statement, a daily operating control or floor log, just check it on regularly scheduled intervals. Praise. Give positive feedback. Be genuine and sincere. You don’t need to do back flips on the showroom floor, simply find something they did and tell them. Don’t just say “Good Job!” Address something specific so you don’t sound trite. Try something like, “Sue, I watched how you handled Mr. and Mrs. Johnson’s objections in finance, and you did a good job of building value.” This way your employee knows you are sincere, because you sited the situation. See us at NADA Convention Have a forum. Get together with your managers on a regular Booth # 5463 and planned basis. Pick a day, set time aside, hold phone calls and interruptions. You need time to communicate and 6 successful solutions at www.autosuccess.biz
  • 7.
    sales and trainingsolution Mark Tewart By Mark Tewart You Are the CEO Are you the CEO of follow-up to the point that it is being done your company? If while you sleep or are on vacation. you’re a sales person, and you answered no Have you set up affiliate programs with to this question, think other businesses to share customers and again. To be successful you must have a CEO provide an introduction to one another? mentality. All successful sales people view Example, “Who does business with whom I themselves as a business within a business. want to do business with?” Ask that question Never forget that the company you work for first to think of businesses that you can set writes and signs your check, but you fill in up reciprocal agreements with to provide a the numbers. Always take responsibility for value proposition to their customers with everything. You are the CEO. enough leverage so they will want to call, fax or email you to get what you sell. What does a CEO do? First of all, a CEO designs a marketing Most businesses utilize one-stage marketing. strategy. How do you get your business? This requires running an ad and asking Walk-ins, in-bound phone calls, repeats, someone to buy. For many sales people, prospecting, networking, referrals, be- this is expensive and not effective. A better backs, affiliate marketing programs, strategy is to form two or three stage database mining, database swapping, marketing techniques. You are asking a niche marketing, seminars, websites, customer to respond that they are interested email responses with auto responders and and want more information. Here are some sequential auto responders. Do you have at examples: Give a be-back cd to every least one strategy for utilizing each one of customer who does not buy and ask them to these? Many people may not even know play it on the way home. The cd should have what many of these items are. The bad news two to five minutes of information that thanks is that you are way behind the top businesses them for the opportunity and provides them in the world, but you can catch up and even with specific reasons why they should buy pass the most productive sales people with your product from you, at your dealership. dedicated strategy and smart actions. Give the customer an incentive to call you back. Arrange with a local restaurant that Top sales people gain and maintain their you will provide a coupon to every customer results through many avenues beyond walk- who shops or services with your dealership, in traffic. When you are new, you spend 80 an offer for two-for-one at the restaurant. percent of your time gaining new customers In return, ask the restaurant to also reward and 20 percent maintaining them. As each their customers by giving each customer a month goes by, your goal will be to reverse coupon with their bill that provides a special the time used to 80 percent maintaining offer from you, with enough leverage for the current customers and 20 percent gaining customer to respond for more information. new ones. To do this, you must develop a Provide seminars for local groups on the marketing web with multiple streams of subject of, “How to buy a vehicle and not get lead generation. Lead generation = dollar ripped off.” Do you know where the last 10 creation. customers who have bought from you work and how you can set up automobile buying If floor traffic dries up, you will have an programs with their employer? If you let excuse not to sell vehicles. From now on, your mind expand, your wallet will follow. excuses are not allowed. What is your strategy for walk-ins? Do you have a You have two choices, you can use excuses process? Does anyone besides you follow up like, “My managers won’t let me do with unsold customers? If you TO in person anything,” “I don’t have the time,” “I have to why not TO on the phone? Are you utilizing make money right now,” or a million other monthly planners or productivity software excuses. Or, you can think of your business that allows you to automate your follow- as a business and become the CEO with up of sold and unsold customers by phone, a long-term, committed strategy to grow mail and email? Do you have a monthly expeditiously. newsletter or, better yet, an email newsletter that reaches your customers unobtrusively and at zero-cost? There are companies that Mark Tewart is the President of Tewart will set up auto responders with pre-set Enterprises. He can be contacted messages to be sent at certain intervals to at 866.429.6844, or by email at your email list. This automates some of your mtewart@autosuccess.biz. january 2004 7
  • 10.
    sales and trainingsolution Brian Brian Ankney By Ankney Demo Drives for Success In the November through your test drive route. Encourage customer through service. Sell your service issue, we discussed your customer to hit the accelerator and department. Mention the exceptional quality added value for your take turns quickly. The test drive builds the of work and continuous training. Now as customers so that desire that will get this deal today. you pass the service writers, introduce your they can feel good customer to their service writer. Get a card about buying at fair gross profits. Now If there is a spouse, get the spouse to drive for your customer and explain that their we will cover how to add value for your also, insist, “I would not be comfortable service writer has different days off than customer during the demo drive. selling your family a car that you, yourself, you, so they will always have someone they don’t feel safe and confident driving. know to help them with any of their needs. The demo drive. Just try it out and make sure that in an Your customer is in the passenger seat, and emergency you would be okay driving it.” The trade appraisal. you are in the driver’s seat. You pull out on Once the spouse has driven, get the main After the service walk you should return to the street and quickly accelerate. Now driver back in the driver’s seat. Get them with your customer to your desk. If there is the time to use the information your excited, again. Solicit four or five positive is a trade, collect the information needed. customer gave you during step two, the statements from them and move on to the If your customer wants to go with you to qualifying step. Demonstrate the features trial close. get the VIN and miles, do not insult their your customer told you that they wanted car. Everyone wants to get the most for in their next vehicle. Show them the dual The trial close. their trade. Make statements like, “Boy this climate control, rear air, louder stereo and/ Every sales person must design their own is a nice car. It has gone a lot of miles for or seven-passenger seating. Prepare them personal trial close. It should look and feel you. You sure got your moneys worth on to experience the intense acceleration, natural. You must be confident in your this car.” Let them feel good about their old award-winning braking distance and words, and never forget this step. This is car so they can buy their new car from you. turning radius. Pull your customer into where you get your customer’s permission a parking lot and stop the car. Finish to sell them a car today. Reiterate your Now you have all the information needed demonstrating the bells and whistles and customers needs and wants and how this to desk a deal and a customer that is ready then rapidly accelerate to 15-25 mph and vehicle fulfills and exceeds each and every to buy a car. Remember that a sale is like a hit the brakes. Use statements like,”feel one. Use, “You said,” statements like, “You tower. Every step is built on top the previous that acceleration,” and “it’s great to be said that this stereo is exactly what you steps. If you do a weak demo and don’t sell able to stop this quickly in an emergency.” want and that trunk will definitely fit work a certain car, your customer will flop out Cut the wheel all the way, and drive the car stuff. You said that the driver’s seat moves of negotiations and go home to think/shop in circles. Comment to the customer on the and sets up just the way you want and that your competition because any payment is vehicles impressive turning radius. this is definitely the color. I agree with you. too much for a car that is not the one. The I think that we have found your next car. same is true of the trial close. If you do a Your customers are looking for a vehicle There is just one thing left to do. I guess weak trial close, your customers will want that will fit all of their children and get them the only thing standing between us doing to think it over and leave. Your manager to work and pull their fishing boat. Lots of business today is price…like it is with most needs a strong trial close to set them up vehicles fit these needs. Some cost more and people…Right?” Your customer will either for the T/O. Ask for help in the areas you some cost less than yours. Some have better say yes, with some small stipulation, “Well feel weak. Your managers can role play and leases and lower incentive rates. Some have your manager is going to have to give me help you improve your income. access to lenders that buy deeper than those $5,000 for my trade,” or give you a firm you work with. objection*. * Firm objections are objections that mean that even if a deal can be reached that Desire will sell this car today. Desire will Take your customer’s yes and their it cannot be done today or tomorrow. If get the higher payment, longer term or stipulation and turn them into a second trial you believe you can’t get it today…you additional $1,500 down. Desire will get close statement. “So if we could get all the are right, no matter what the objection. your customer to call their grandmother into figures, including your trade, agreeable, You need help, so finish the drive and the store tonight to cosign. Acceleration, YOU WILL TAKE DELIVERY OF THIS service walk and go to desk for help. We braking and turning will create this desire. CAR TODAY?” You need a yes here. Your will discuss firm objections further in an You have demonstrated each during the customer will say sure or give you a firm upcoming article. drive. Now exit the vehicle, and invite your objection*. customer to drive with a statement like, “Alright, I guess my turn is up. Now it is The service walk. your turn to drive. You are going to love the As your customer drives back into the way this car drives.” Have your customer dealership, direct them to park in the sold accelerate rapidly and brake. Have them row. Exit the car and say, “Follow me.” cut the wheel to see the incredible turning Walk ahead so that your customer must Brian Ankney from AutoClick can be radius. Ask your customer, “What do you hold on to the keys. Show your customer contacted at 866.247.9587, or by email think?” Get them excited. Now instruct them into the service department. Walk your at bankney@autosuccess.biz. 10 visit us at www.autosuccess.biz
  • 11.
    marketing solution Dennis McDonough By Dennis McDonough Sales From the Internet: Search Engine Optimization There are many If they are slow to load, either modify Do the home page first and then each things you can do the pages to be faster, select another additional page. Getting listed in the to help your website page or look for a new host. Speed Google database usually takes four be listed among the is very important to your Google to six weeks but can take over three top search engine ranking. months. Be patient, don’t submit your rankings. site pages every day, only submit 5. Work these top five phrases into individual pages every thirty days. Search engines include Google, Yahoo, the website titles, ‘meta’ tags, ‘alt’ MSN, AOL, All the Web, Find What, Alexa tags and content. Really look at 7. Monitor your words and phrases on and Teoma, to name a few. These sites fall the content. A good search engine the Google site. Do monthly checks to into two classes, spiders or directories. optimization firm will make copy see where your site ranks. Spiders use programs to search the Internet suggestions to you. to find sites through links. Directories take Search engine optimization is not a submissions, taking only the sites that ask This optimization needs to be done on one-time fix. Monitoring and updating to be listed. Most directories require you a page-by-page basis. Do not repeat a your site pages as the ranking goes up to pay a subscription fee to be listed in phrase just to get it used, if it is too and down should at least be done on a them. Most spiders are free, but you have frequent in the content your ranking quarterly basis. to get the spider to find your site. Google will suffer. Do not try to get all the is the biggest spider, and Yahoo is the phrases in one page; that does not biggest directory. help either. Dennis McDonough is the President of Bit-Concepts. He can be contacted at Google is the most popular search engine. 6. After completing the modifications, 877.354.1998, ext.202, or by email at It is a spider and does not cost to be listed. submit each modified page to Google. dmcdonough@autosuccess.biz. Google provides the results for over 75 percent of the searches done today on the Internet. Yahoo, AOL, MSN and others use Google for some of their results. Google has special rules to be followed for an effective listing on their site. These rules change on an irregular basis and should be reviewed regularly. Log 200-500% more opportunities! The time to start thinking about search engine optimization is when your site Leader in Showroom Traffic, is being developed. A good website developer will understand Google’s rules Lead Management, and incorporate them into the site design. and CRM Software Track all outgoing real-time showroom & desking control Use these seven steps to achieve a good phone activity ranking on Google: internet lead tracking system 1. Identify the words and phrases 2-way active DMS integration that your customers would use to find you. A single word does not usually complete in-store training work well; there is just too much Minimize data entry competition. with license scanner drivers license scan, worksheets & credit bureaus 2. Check the phrases for popularity, and select the top five most searched. 3. Enter phrases on the search track more engines to see if they return sites for The Higher Gear Group, Inc. companies like yours. bring back Hoffman Estates, IL 60195 4. Select specific pages to feature more tel 866.873.0029 fax 847.310.3196 each phrase. The pages you select sales@highergear.com should have static content. Use the home page and directly link from the close www.highergear.com home page. Check these pages for their load time. They should load in more call for a FREE consultation and demonstration less than 15 seconds on a dialup line. january 2004 11
  • 12.
    golf solution Brian By Brian Manzella Manzella May the Forces Be With You There are many the the grip end of the shaft, into the wall, pivot forward, around your spine, you can movements that a the clubhead would go down the wall and ‘drop’ the club right on the ball (pic 3). Or player must perform forward toward the ball and target (pic 1). drag it down on the ball. Or push it. in an efficient golf swing. But there Dropped, pulled or pushed STRAIGHT The second reason you need the rotating are only two forces that the golfer has down, the clubhead will go forward also ‘around-ward’ force is for speed. Simply, to create. They must create a downward if there is a pin at the grip end of the shaft. the faster you unwind (RPM’s) the faster force and a rotational or, what I like to The key is that there is only a downward the clubhead will go. call, an ‘around-ward’ force. Poor players force at work in this ‘pinned’ example. add directional forces such as forward and In the golf swing there are two pins: the The ‘around-ward’ move most closely upward in a vain attempt at making the primary one at the left shoulder where approximates a left-handed frisbee toss. ball fly toward the target. If you can learn the left arm attaches, and a secondary Just go out to the store and buy a basic to create the “Two Forces” and eliminate one at the left wrist. So with or without model frisbee and practice throwing it left the unnecessary other forces, you can wristcock, the golfer gets two for one with handed. Just stand 90 degrees to the target, simplify your swing and maximize your the correct application of a downward like your golf stance, unwind and fling that distance and accuracy. force. The clubhead will go downward frisbee. Just like in the golf swing, ‘over- and forward. acceleration’ of the left arm, by the left Let’s start with the downward force. arm, is a disaster. Allow your torso to drag Doesn’t there have to be a forward force? The ‘around-ward’ force is necessary for your left arm around and flail your left arm The answer is no. If you put a golf club two reasons. One reason is transportation. off of your chest (pic 4). against a wall, horizontal to the floor, and Transportation? Yep. If you make a drop it, it falls straight downward due to ‘normal’ backswing and let the arms/ The only difference in the frisbee pivot gravity. The same happens if you pull it hands/club unit just fall from the top, and the golf version is the plane. The down the wall or push it down the wall. It the clubhead will hit the ground several frisbee plane is horizontal to the ground, falls straight down. But, if you had a pin in inches behind the ball (pic 2). But if you and the golf plane is on an incline. You 1 2 3 4 12 subscribe today at www.autosuccess.biz
  • 13.
    continued could throw thefrisbee toward the ground, tilting’ as the release occurs (correct pic 6, to understand the two forces in the golf on the target line, a few yards forward on incorrect pic 7). swing and you should be able to apply the ball, to get the feel. The change in them to your swing effectively. Just as planes necessitates the tilting of your spine This ‘around-ward’ rotation of the golfer, important is the elimination of the forces both more over and slightly to the right, called the pivot, creates a resultant that are not either downward or ‘around- just like in the golf swing (pic 5). outward force, just like the one created ward.’ The reason the great players look by twirling a rock on a string (pic 8). It like they are doing less than you are, is The combination of the downward force should be obvious that poor players, with because...they are. and the rotational force can be exercised their upper body forward lunges and lifts, by skipping rocks. Rock skipping includes disturb the orbit of the clubhead, much as the right arm throw (downward on plane) any non-rotating force would disrupt the Brian Manzella is a PGA Teaching and the ‘around-ward’ pivot with a titled twirling of the rock on a string. Professional. He can be contacted axis. So many golfers have trouble with at 866.873.0036, or by email at this all-important detail. The golfer must With just a frisbee, a hand full of rocks bmanzella@autosuccess.biz, or visit be able to create this throw without ‘un- and a piece of string, you should be able www.brianmanzella.com. 5 6 7 8 january 2004 13
  • 14.
    sales and trainingsolution TerryByL. Isaac Terry L. Isaac Implementing Change Within Your Sales Team The goals that you Allow your team to have some input on Test the process you’re changing, you will set will result in the the new goals, it will give them a feeling gain all the support you need when you game plan you put of being a part of the goal, and they need to show them how the change will benefit into action. Most buy in. This business is full of self-starters them and the dealership. of the goals you set and bringing a team together might not will require change. For example, if your be easy. One way to get your goal across Set the standard, it’s your job to make goal is to improve CSI, it will require a to your team is to break it down into two changes as needed for the improvement of change in how you handle your customers phases. Start with the objective of your operations. Management is leadership, and and will need to be evaluated to put a new goal. If your goal is to increase sales, start leadership is leading the way, not asking plan of action in place. After the plan is with the first phase of a sale. The first phase for directions. Change is a good thing; it laid out, you must coach your sales team is a lead, all sales made start with leads, ups, keeps your team growing and prevents to implement the plan, it must be clear so sales calls, factory leads, etc. As you start, complacency. Sales people get into a routine the team can understand the procedure to form your flow chart, this is a good way to and don’t increase their production, change follow. structure your plan. Show how leads are their routine and change their results. currently being handled and better ways of Many people resist change because of their handling them, whether it’s sales calls with If a sales person sells below average and comfort zone. Without change your goals a new word track or handling ups. This will you do nothing to adjust their performance, will be impossible to achieve, if there is no increase leads. the next month the same result is repeated. change then you will only repeat the same Implement ongoing training and coaching results. Communication is key for getting Take one step at a time. People can’t handle to improve the production. your team to change. You need to make a lot of change at once. It takes patience sure you clarify the changes. The more and time to get people to change but never An excellent goal is to implement clear the change, the more likely your stop trying, always believe it will happen. an ongoing training program for low team is to respond. Change is a process Explain the importance of the change to performance, this goal of improvement has and it takes time to change peoples ways. your organization and the rationale for it. two benefits. 1. It will increase sales, which is an every day goal, and 2. It will increase retention. Remember to use the flow chart for all of your goals and to break them down to communicate to your team. Have a kick-off meeting/training session to get your plan into action. You will need to have your training set up over several weeks to teach the new process. Set up training materials to present your program in a professional manner. This will give you credibility with your team and make it easier for them to follow and understand the program. After providing the training for the change you are implementing, you need to have feedback on an ongoing basis. Your sales people all learn at different speeds and might understand in different ways. Tracking the results of the new process is the only way to show progress and ROI. The information you track will be important for modifying your plan of action. Management must take action and set goals from the top down. If everyone understands the new goals and why the changes are being made, the whole team will work together toward improvement. Terry L. Isaac is the Corporate Sales Trainer for the Neil Huffman Auto Group. He can be contacted at 866.265.4680, or by email at tisaac@autosuccess.biz. 14 contact us at www.autosuccess.biz
  • 15.
    AutoSuccess, the onlysales-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 own official, personalized Louisville Slugger Baseball Bat FREE!* * shipping and handling not included. CALL TODAY! 866.269.8604
  • 16.
    feature solution Patrick Luck By Patrick Luck eDealers of the Year: How They Did It Creating a successful website is a it is our number one marketing medium. purchase program’. possibility for all dealerships. To have The Web is our number two or number one Red McCombs: Mass bulk multi-media an award winning website, you must source for phone calls into our dealerships. emails and search engine placement know how to accomplish it. The dealers We know because we measure it. We sell services. We also put our URL on all ads award winning sites for 2004 sold 60-600 over 600 units a month, we drive revenue and everything with our name on it. additional units a month, while driving to service, parts, F&I and more. Courtesy: Search engines, email revenue to all profit centers. A great way Tasca: Over 60 percent of our customers marketing, local markets newspaper sites to achieve this success is to learn from visit our website before they come to and our traditional marketing. others that are already using their site to the dealership. If the majority of our Sheehy: Make sure your website is on sell units and drive profits. The winning customers research on the Web it makes ‘all’ dealership material and that you’re on dealers were asked questions to show sense for us to be there. Seventy-two top of the search engines. how they achieved these positive results. percent of our phone traffic is Web based The interview responses are listed to help on our phone traffic reports. It is a critical Question 4: What type of people do you with successful website techniques. marketing tool. hire? How do you train and pay them? Red McCombs: Absolutely. We sell an Question 1: What type of website additional 260 units a month, generate Herb Chambers: Sales people, not should a dealer build? What are the key more sub-prime business, create a lot of computer geniuses. I can teach a great sales characteristics? service appointments, and we sell parts person technology in a few hours, but it takes online as well. months to teach a computer programmer to Herb Chambers: Remember to build a Courtesy: The majority of our phone be a great sales person. We have an in- website for your customers, not you. When traffic is from our website, and we sell an house, nine-day training program. Pay? evaluating content, do so with the eye of a additional 84 units a month, not including The same as showroom pay. consumer...not a dealer principal. Less the extra phone and showroom traffic. Last Tasca: We hire people that are good on fluff than they get in the print ads but more month, we became the second biggest the phone. We use a company to help our content including product information, Chevrolet dealer in the country and the strategy and train on the process, and we pricing, financing, specials, etc. Web was a critical part of that success. have them in two days a month to keep up Tasca: The site must be simple and Sheehy: Yes. We get a number of calls to speed. built around the customers needs. A key and walk-in customers who say they were Red McCombs: Experienced car sales characteristic is information, not just price on our site or they bring in our discount people. The best on the floor, will be the but information that builds value in your certificate. Overall, the Web is also best on the Internet. We have phone scripts dealership and products. We also highlight directly responsible for 250+ incremental and weekly sales meetings. They get paid the advantages of our dealership and our sales a month, and our cost per sale is less 17 percent of total billed deal. certified pre-owned program. than $150 which is better than our other Courtesy: People with sales experience Red McCombs: Ease of use is the marketing mediums. in car sales, very hands on training and key. Engage customers with an interactive support for the first thirty days. We train experience that encourages them to contact Question 3: How can you market your them on the process, phone scripts and your dealership. website? objection guides. They get paid on units, Courtesy: Our goal is to create more gross, with higher percent when CSI is leads, so we have many different ways to Herb Chambers: Your URL must simply higher. gather customers contact information to become part of all your other traditional Sheehy: We like rookies and train them increase our conversation ratio to ensure forms of advertising. It needs to be on all from scratch on the Internet process for more high quality leads for less cost. Our print ads (including help wanted), radio, two days, then continue onsite training, current conversion ratio is 21 percent. TV (if applicable), stationary, business and we work deals with them in the store. Sheehy: Searchable inventory, pictures cards, doors, etc. Everywhere, period. Basically, lead by example. We pay salary, of new and used vehicles, model reviews, Tasca: We have included it in all of our commissions, plus incentive bonus. payment calculator, MSRP and invoice traditional marketing: billboards, TV, radio price, comparisons, trade-in information, and print. We also do online marketing Question 5: What is your process phone and location information. including email marketing, banners on for handling leads? What is the most high traffic sites, and we dominate the important part of the process? Question 2: Is the Web a good marketing search engines. We also market to large medium? companies by offering them our ‘fleet Herb Chambers: Email, phone and purchase program’ and to OEM suppliers showroom. The bottom line is to sell the Herb Chambers: On a cost per sale basis, by emailing them about our ‘vendor appointment and follow up until they buy. 16 www.autosuccess.biz
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    Tasca: We automatea lot of the emails for them as well as we handle our Internet yet diminishing part of our electronic a 90-day period so our people can spend leads. marketing mix. Our website is definitely more time on the phone and selling cars. Courtesy: We handle our phone and our best source of leads, the manufacturers Our main focus is to set an appointment. Internet leads in our BDC/Internet second and third party last. Red McCombs: Internet sales force department, and leads are logged into our Tasca: We do not use any third party receives the leads and then makes contact CRM system, which automatically sends leads. They have a close percentage of within 30 minutes. Internet coordinators out multi-media emails over a 90-day two to five percent. Our website leads continue with phone calls until they set an follow-up cycle. The goal and the process cost a lot less and have an average closing appointment. are the same, to set an appointment. percentage of 20 percent. Courtesy: I personally distribute them or Sheehy: We are going to apply a similar Red McCombs: I would like to cut them automatically ‘round robin’ the leads in process to our phone leads. out, but can’t as of now. We have reduced my absence. The most important part is our dependency on them, and our website the phone to sell the appointment and to Question 8: Do you do any email leads have a much higher closing ratio and follow up via email and phone. marketing? lower cost per sale. Sheehy: Speed and answering the Courtesy: I don’t like them, but we still use questions leads ask. Herb Chambers: Yes, regularly. It is them. Our website generates the majority results and cost effective if done properly. of our leads, and they have three to four Question 6: How do you handle Tasca: We have hundreds of pre-packaged times higher closing ratios. Eventually, we pricing? What is your gross profit? multi-media emails that we send for will probably get rid of all of them. We are different times of the year. It is the same our own buying service in our market. Herb Chambers: We make our program as direct mail except there is no cost for Sheehy: Our best source is our own site. more about the process and product than the mail and customers can build a car and We want to reduce third party leads to as the price. Our average gross is higher apply for credit right from the email we few as possible, They cost more and our than the showroom floor in the stores with send them. website has three times higher closing Internet sales people in place for more Red McCombs: Yes, lots. It is the cheapest percentage. than six months. way to reach the masses. Every week we Tasca: We have a menu pricing policy. run a different special and send it to all of Bonus Question: What do you think the We have a fair profit built into every our leads generated from the website and future holds? vehicle. Our pricing policy is the same third party lead generators. for a showroom customer. We pay on CSI Courtesy: Yes. It helps us attract more Herb Chambers: We have gone from rather than gross profit. customers for a lot less cost than other selling 100, 200, 300 and, now, up to Red McCombs: Mystery shop all of our types of marketing and within a few clicks 600 units a month. If the trend continues competitors, and we ask for a fair profit. thousands of people can know about our the future looks great. Our average is $1,850 per unit. weekend sale. Tasca: The dealers that sell a lot of cars Courtesy: We don’t sell price. We sell our Sheehy: Mostly broadcast emails on and satisfies customers will win. In order process, people and products. Also, our specific incentives or rebates. We are able to grow and stand out from the competition goal is to generate an appointment and to capture some deals where people were a dealer needs to be successful on all then we sell the car on the showroom. Our not ready to buy now, and it does not cost fronts: showroom, Internet, phone, BDCs, gross is $2,200 a copy, which is the same us any money. service, parts and body shop. The Web as our showroom average gross profit. plays a role in everything. Sheehy: We give the exact price of what Question 9: What numbers do you Red McCombs: We have more than they are looking for then below that give a measure? doubled our Internet business in the last lower price alternative. Our average gross 90 days and believe that more people are is $1,700. Herb Chambers: Everything, it would using the Web to do business. The future be easier to write what we don’t measure. looks promising. Question 7: How are you handling your For example, we measure lead volume, Courtesy: Dealerships will start shifting phone leads? response time, closing percentage, cost more of their advertising to market where per lead and cost per sale. the majority of customers start their Herb Chambers: We have a similar Tasca: Total leads, appointments, sales, purchase process, online. Until then we process for our phone leads. Our main deliveries, cost per lead and cost per sale. will continue to take advantage of the fact goal with both types of leads is to sell Red McCombs: Leads, closing percentage, that a lot of our competitors don’t. We use the appointment and to follow up until sales: daily, weekly and monthly. the Web to sell more cars for less money. they come in. We also capture their email Courtesy: Response time, appointment Sheehy: Turning our Internet departments address to automate some of the follow-up percentage, show percentage, closing into BDCs where we have dedicated so each person can handle more leads. percentage, average gross and CSI. people and processes to handle all types Tasca: All of our incoming phone calls Sheehy: We measure everything by of inbound leads along with follow-up, run through our Customer Relationship source, by store and by sales person. renewals and other marketing activities. Center along with our Internet leads. It is a very similar process, and it works great to Question 10: What is your view of third Patrick Luck is the Editor and Publisher combine them. party lead providers? of AutoSuccess Magazine. He can be Red McCombs: Not very well. They contacted at 866.802.5603, or by email would probably improve if we handled Herb Chambers: A somewhat necessary, at pat@autosuccess.biz. january 2004 17
  • 18.
    marketing solution Sean WolfiWolfington By Sean ngton Herb Chambers Sells 600 Vehicles Online The following is to do to reach their goals. Some parts of sales experience and with great phone and a summary of a the strategy they created and what you may follow-up skills. They are on the same pay case study on Herb want to customize for your dealership are plan as the other traditional sales people. Chambers. listed. 7. Process: Herb Chambers defined their Herb Chambers sells approximately 2. Technology: Herb Chambers Internet process for handling opportunities 600 units per month from their Internet implemented a complete digital marketing by mapping out their process for turning department alone. system which included a custom website leads into appointments and sales. They that promotes all of their profit centers are selling approximately 600 additional Digital marketing strategy generates the and drives more foot, phone and Internet units per month at a higher gross profit than majority of their phone traffic to their traffic. The system includes a prospect some of their showrooms because they dealership. management tool that automates a lot of do not sell price, they build value in the the email activity so their team has more dealership, people and product, and, at the Herb Chambers drives more revenue to time to use the phone and to sell cars. same time, they highlight the advantages the service and parts department through The most important dynamic technology of doing business with them rather than the eMarketing. they use are the multi-media buzzmails competition. that help drive traffic through bulk email 1. The strategy: Herb Chambers began marketing and selling new prospects and 8. Pricing: Herb Chambers realizes that by getting together with their leadership by automating the follow-up of their selling cars on the Internet is not about team to create an eCRM business plan customers throughout their ownership giving cars away. that outlined their goals and strategy. This cycle. Lastly, they have offices equipped strategy boot camp was facilitated by their with a PC, printer and digital camera for “The mistake some dealers make is that digital marketing vendor, and it helped taking pictures of inventory. they sell the price rather than building them create a detailed blueprint and action value…in the end, if we do not ask for a plan that outlined everything they needed 3. They purchased website addresses fair profit it is impossible to get one,” said (URL/ISP): They purchased the URLs and Jay Gubala. “We put together a pricing purchased all of the names they thought philosophy that is competitive but that also customers might type into their browser preserves our gross profit.” to find them. Here are some examples for you to buy: www.dealernamebrand.com, 9. Training: They partnered with a www.townbrand.com. company that initially trained everyone in the department on the phone, follow-up 4. Marketing their website: Herb and sales skills they needed to increase Chambers conducts bulk multi-media appointments, sales, gross profit, CSI and email campaigns, and they are ahead of loyalty. their competitors on the search engines. They also add their URL to all traditional “The key to the training was to develop media. They put it everywhere their name their skill and confidence and this is Heard the buzz? Find out for yourself what it’s all about. CarChip is, including their current documents, accomplished through repetitive practice, is “a useful tool for the professional,” says one service manager. TV, radio, print ads, dealership collateral videos and hands on experience.” “Technicians dealing with intermittent issues can program CarChip to monitor suspect circuits, and then return the vehicle to the customer.” material, business cards, repair orders, license plate brackets, billboards, etc. In addition, Herb Chambers has a very It’s affordable, so there’s no need for large deposits. And once your customers find out about it, they may very well want one for successful nine-day training program for themselves! Attractive packaging and full-color point-of-sale display 5. Referral service: Herb Chambers goal new hires. help make the sale—adding to YOUR profits! was to reduce their expenses for third party Monitor any 4 out of 23 possible engine parameters including: lead providers and increase their leads/ 10. Measure/manage: “You cannot manage • RPM & engine load • Fuel trim • Intake air temp • Throttle position • Battery voltage • Intake manifold pressure sales from their own site which costs less what you cannot measure. We measure • Fuel pressure • Timing advance • Air flow rate and have a higher closing percentage. They everything and hold regular meetings to • Fuel system status • Coolant temp • Oxygen sensor voltage eliminated the providers that were not discuss our progress and ways to improve. Plus trouble codes, freeze-frame sensor readings, speed, distance, and accels & decels. Up to 300 hours of trip data—all for just $179! effective and replaced them by increasing Reports give us the information we need, Plugs instantly into OBDII port. Download to PC for their leads from their own site. In the end, the number of leads by source, response detailed analysis and graphing. ner they have more leads and sales and the rate and time, appointment percentage, Ask how YOU can become Win majority are from their site, so they cost a show percentage, closing percentage, cost d eere an authorized reseller! Engin duct Bestew Pro lot less and the closing percentage is three per lead, cost per sale, etc,” said Gubala. N times higher. TM ™ AUS0310 6. People: Herb Chambers has dedicated Sean WolÞngton is an Owner of BZ Davis Instruments Internet sales people at every dealership Results.com. He can be contacted at 3465 Diablo Ave, Hayward, CA 94545 866.297.3152 • www.carchip.com who sell the appointment and vehicle. They 866.802.5753, or by email at recruited people with previous automotive swolÞngton@autosuccess.biz. 18 stop by www.autosuccess.biz
  • 19.
    AWN inc. automotive warrantynetwork, inc. There is so much more! Automotive Warranty Network, Inc. is the complete warranty claims management company for all your warranty needs. We offer world class claims management, not just warranty processing. In our POWERTRAINING experience, we will customize the training for YOUR TM staff on YOUR computer system in YOUR dealership with amazing results. With our Temp Care service, you have temporary warranty coverage for TM vacations, illness or just plain getting behind. Let us show you how much we have to offer and we think you will agree, “There is so much more!” This note is to express our appreciation for the wonderful work you did for us last month. You impressed us from the very Þrst conversation we had with Rich to the excellent help you have been since the completion of your PowerTraining. Due to recent changes in warranty procedures, we found ourselves in need of immediate assistance. We called Jaguar for a recommendation and received your names and phone number. The improvements were next to miraculous! Unpaid warranties started to get paid by the next day. You far exceeded our expectations in every way. Then you impressed me further with your, PowerTraining which included far more than just the Warranty Administrator training we were expecting. The way you evaluated and held responsiblity for each step of a Warranty repair order from start to Þnish impressed us immmensely. The week you guys spent here was a breath of fresh air. You kept every promise you made and more. The training, procedures and operations books you set up for us are incredible and will be invaluable in maintaining the training you provided for us. We have already recommended your services to other service managers and will be happy to answer any questions for any of your prospective clients. Walter Bacall, Service Manager, RUSNAK/Pasadena info@AWNinc.com 303.703.9143
  • 20.
    ADVERTISEMENT profit solution Scott Scott Joseph By Joseph What Is Your Growth Strategy for 2004? The growth strategy increases your with your customers through average gross per unit because: direct mail to maintain a • It attracts trafÞc that buys the positive relationship and to way you sell. Therefore these motivate each customer to There are only three ways you can buyers are more trusting and buy now. grow your business in 2004 and only negotiate less. • Running special events such three: • It brings in buyers who expect as “closed door sales,” limited 1. Increase your number of to Þnance through your pre-sale prices and so on. customers dealership – which increases • Price inducements 2. Increase the average gross per your Þnance penetration. deal • Over 40% of the trafÞc Wow, look at what can happen 3. Increase the frequency generated will have clear when this growth strategy is of repurchase – get more titles. This makes it much optimized! residual value out of each easier for you to Þt the customer customer into the payment Just look at the math. Let’s keep they want without giving up it simple and say you sell 100 cars Recently, we introduced a completely gross. a month - that equals 1,200 a year. new direct mail strategy to our Let’s say you average $2,000 gross customers that focuses on all three To increase your repurchase frequency, per unit and your average customer and delivers an incredible return the growth strategy focuses on: buys once every three years (.33 times on investment. I’m talking about a • Communicating personally a year). growth strategy that increases your customer base, increases the average dollar amount each customer spends with you and increases the frequency Increase Increase your Increase the Total gross your customers buy from you. your # of average gross repurchase per year customers per unit frequency per customer How does this unique J&L Growth .333 Strategy work? 1,200 x $2,000 x = $799,200 (current one car (current) (current) every three years) To grow your number of customers you sell each month the growth 10% Increase 10% Increase 10% Increase 33.1% Increase strategy does three things: 1. Increases the amount of 1,320 $2,200 .366 $1,062,864 (10 more units x ($200 more gross x (customers now buy = ($263,644 quality ßoor trafÞc in your per month) per month) a car every 2.73 years) in extra gross) dealership 2. Increases your customer (what if) (what if) (what if) (what if) retention rate 15% Increase 20% Increase 33% Increase 83.172% Increase 3. Increases your closing percentage 1,380 $2,400 .442 $1,463,904 (15 more units x ($400 more gross x (customers now buy = ($664,704 per month) per month) a car every 2.26 years) in extra gross) www.jandlmarketing.com
  • 21.
    ADVERTISEMENT profit solution Scott Scott Joseph By Joseph What’s the overall Growth Strategy Testing, measuring and analyzing This powerful growth strategy teaches philosophy? lets you determine with pinpoint people how to make the most out accuracy, what your market wants and of their most valuable asset. They The Growth Strategy makes use of a doesn’t want. see Þrst hand that if the mailing lot of simple ideas that are profoundly lists are accurate and effectively powerful and easy to use. This J&L Marketing is the only company marketed, they generate more sales Growth Strategy philosophy is proÞt who has the capability to test every and make more money than any other enhancement through marketing element of your direct marketing advertising approach has ever done or leverage. efforts. We’ve invested a small will ever do. fortune and developed a program to What is marketing leverage? determine exactly what works best for Make the decision right now to do you. something for your dealership, your Marketing leverage is getting sales people, your managers and for phenomenal better results for the Where can you go to Þnd mailing you that will produce the “deÞning same amount of money and effort lists that generate a lot of quality experience” our other customers have you are currently spending. One list trafÞc and support this Growth already encountered - the type of or offer could out pull another by as Strategy? experience that will transform your much as 5 to 10 times. The ad costs business performance and wealth you exactly the same, but you’re This Growth Strategy utilizes as from this day forward. getting much better results with a many as three completely different different list or offer. That’s leverage. lists. Because there could be several unique lists, managing these different How testing will help you leverage lists and how they are used is critical your marketing? to maximize your potential. You’ll never know if you’re Because of the highly competitive maximizing your leverage until you nature of our business, I will not test all the factors that matter: write today exactly what lists we use. • Test one list against another. However, if you call my ofÞce and • One mail piece against ask for Lisa Wilson at 866.856.6782 another. you’ll discover exactly where we get • One headline against another. these lists, how we’ll utilize them • One offer against another. for your store and why they are so • One day of the week, month effective. or year against another. • One market (geographically) The dealerships that immersed Discover exactly where we get these against another. themselves fully in my proprietary growth strategy lists, how we utilize them, mindset and methodology stated it and why they are so effective, right now. You don’t have the right to tell the was the “deÞning experience” that Call my ofÞce today at 866.856.6782 market what it wants. You have to transformed their business performance from 8:00am to 6:00pm EST and ask for ask the consumer what they want. and wealth from that day forward. Lisa Wilson. www.jandlmarketing.com
  • 22.
    f&i solution GeorgeGeorge Jackson By Jackson How to Forecast Your Success The best way to product. Add these together for your total Every F&I forecast must be attainable, grow individually, F&I department income. adaptable and easily monitored. personally and Penetration levels and income averages financially is to Step 6. can be monitored daily, if need be, and set goals with a Divide the total F&I department by the are the best means to measure the success complete and thorough F&I forecast. To forecasted units in Step 1 to get the F&I of the department. If you are achieving say you want to do better and make more PRU. This is the true F&I forecast, as PRU your projected penetration levels and money than last year is not good enough. is easier to predict and control than total income averages, then it is mathematically (Neither is saying you want to generate dollars. impossible not to achieve your forecasted a certain dollar amount of F&I income.) PRU. The only possible reason you would A forecast should never be dollar based Here is how you would apply these steps not reach the total dollar goal is because because it does not take into consideration and complete an annual forecast. the dealership has simply not sold enough the number of units sold, it is incomplete. units. If the unit forecasts hold true, then Here are six simple steps to setting an Step 1: Forecasted units department income will eventually take annual forecast for the coming year. New Cars 1200 care of itself. Trucks 1500 Step 1. Used Cars 1300 Find out how many units each sales Total Units 4000 manager is forecasting. Base your forecast on these numbers. This is the one way to predict total F&I Step 2 Step 3 Step 4 Step 5 department income Presentation Contracts & Average Total F&I and income per Levels Policies Sold Income Department Income retail unit (PRU). Finance 70% (4000 x 70%) = 2800 $500 (2800 x $500) = 1,400,000 Step 2. Credit Life 30% (2800 x 30%) = 840 $200 (840 x $200) = 168,000 Forecast penetration Dsability 25% (2800 x 25%) = 700 $300 (700 x $300) = 210,000 levels for finance VSC 50% (4000 x 50%) = 2000 $500 (2000 x $500) = 1,000,000 and all F&I GAP 30% (2800 x 30%) = 840 $250 (840 x $300) = 252,000 products sold in the Etch 60% (4000 x 60%) = 2400 $100 (2400 x $100) = 240,000 department. Base Maintenance 20% (4000 x 20%) = 800 $150 (800 x $150) = 120,000 credit life, disability $3,390,000 and GAP on total PRU = (3,390,000/4000) = $847.50 finance units and all other products on total retail units. Step 3. The penetration levels and income averages George Jackson is the Director of Calculate the number of finance deals, shown above are simply for demonstration. F&I Training for American Financial & service contract policies, credit life and Many factors can and will influence both Automotive Services, Inc. He can be disability, GAP policies, etc. by applying for a particular dealership or state, so your contacted at 866.280.0301, or by email the penetration levels from Step 2 to the numbers should and will be different. at gjackson@autosuccess.biz. forecasted units in Step 2. Step 4. Establish or calculate the average income the F&I department earns every time it sells a product or finances a vehicle. For example, $100,000 in reserve on 250 finance deals equals $400 average reserve per finance deal ($100,000/250 = $400). $60,000 in service contract income for 100 policies equals $600 per service contract sold ($60,000/100 = $600). Do this for every product that you offer. Step 5. Multiply the contracts or policies from Step 3 by the income averages established in Step 4 to get your total dollars for each 22 stop by www.autosuccess.biz
  • 23.
    marketing solution Jeff Fishel By Jeff Fishel The Effectiveness of Jingle-tising Whether you positioning statements, or more precisely, that is catchy and hard to forget. choose radio, TV, what separates you from the other dealers the Internet or print in your market. Jingle-tising is an excellent way to as your advertising elevate your specific messages above medium, all With jingle-tising, however, the main the cacophony of ordinary daily automotive advertising must fall under one positioning or branding messages are advertising. By design, jingle-tising can or more of these categories: positioning, contained within the tags of the jingle, distinguish you from your competitors product, price and promotions. while the merchandising and event offers while simultaneously providing you with are inserted over the music bed, or donut limitless elasticity in achieving your Positioning (branding) differentiates your segment. This is the reason jingle-tising is advertising objectives. dealership from the competitors in your so effective as a means of delivering your marketplace. Product and price consists various advertising messages. Its power of your merchandising efforts. Promotions stems from the flexibility of the music include your advertising events or itself. campaigns with ‘offers’ and ‘time-limits’ both designed to create urgency in your Jingle-tising will supplement your market. merchandising campaigns and help to promote your one to five day sales Some dealers and their advertising agents events. Regardless of the time frame or combine their positioning messages with format of your jingle-tising campaign, its their product and price merchandising and specific melody and message will virtually even with their promotional event offers. guarantee your dealership’s positioning in This combination of branding and retailing your marketplace and can, many times, has become known as ‘brand-tailing’ and linger in the minds of those who heard it Jeff Fishel is the National Sales can be an ideal way to obtain successful for quite some time. Director for FishMarketingOnline.net, automotive advertising results. FishMarketingOnline.com and A full-sing jingle ‘sings’ your positioning IndependentAutomotiveMarketing.com. There are many ways to brand-tail statements right into the minds of your He can be contacted at including the select use of targeted tag- potential car buyers, leaving a message jeff@Þshmarketingonline.net. lines, uniform graphics, unique print design and logos. An especially effective way to mix the advertising paradigms is by using jingles. You can call this mixture of Taylor Techniques, Inc. brand-tailing with jingles, ‘jingle-tising’. Nothing will enter the minds of the buyers in any market better than appending your specific advertising message to a musical melody. For example, in your mind, finish AUTOMOTIVE SALES AND MANAGEMENT TRAINING the remainder of this branding message: The Hottest In-house Trainer in the Country! “PLOP, PLOP… FIZ, FIZ.....! • DO YOU WANT IN-HOUSE, HANDS ON For those of you who filled in the above TRAINING THAT WORKS? blanks with, “Oh what a relief it is!” you have just demonstrated the effectiveness • DO YOU WANT BIGGER GROSSES? of jingles. This positioning statement piggy-backed onto a musical melody • DO YOU WANT YOUR SALES FORCE TO will forever be etched into our collective PROSPECT MORE? mind’s-eye right along with the product it Fran Taylor represented, Alka Seltzer. • HOW WOULD IT MAKE YOU FEEL IF YOUR is the President and CEO of Taylor SALES PEOPLE SOLD AT LEAST ONE CAR A Techniques, Inc. He This is a perfect way to get your message DAY? can be contacted at into the minds of the car buying public in MrFranTaylor@aol.com your marketplace. CALL THE KING OF PROSPECTING! 866 873 0041 With jingles, the music does the work. The unique melody sticks in people’s heads, Call Today! and the words come along attached to the specific melody. These words consist of lyrics describing your specific advertising january 2004 23
  • 24.
    leadership solution Joe Verde By Joe Verde A Word From the Coach, Part 1 “I’m just a plow up or calm others down when things get • And, in too many dealerships, when hand from Arkansas, a little out of hand. In most dealerships, things are going real good, management but I’ve learned the thinking is just the opposite of Bear is so hyped on themselves they forget to hold a team Bryant’s. where the sales actually come from together. How to lift – each sales person talking with a some men up, how to calm others down, In most dealerships. customer. And, too, when a sales person until finally they’ve got one heartbeat • When things go bad it’s always the starts being paid well for doing well it’s, together - a team. There’s just three things sales people’s fault. There’s never even “we pay these guys too much.” I’d ever say... a thought that it could possibly be the coaching team. After all, you can’t When things are really, really good, 1. If anything goes bad – I did it. blame management because Johnny too many managers try to steal all the 2. If anything goes semi-good – then can’t close a sale or Susie doesn’t do thunder for that job well done. we did it. her follow-up. 3. If anything goes real good – then One of the worst people managers they did it. And you surely can’t blame is one that keeps repeating, “I pride ...that’s all it takes for management when sales people aren’t myself on what I’ve done.” They never people to win football games for you.” motivated or when they’re working bother to ‘pride’ their sales people on Bear Bryant on management…from their own deals or when they don’t take doing the job. Maybe, if they did their October MNL 2003. a demo ride or when they can’t get the dealership wouldn’t go from, say, the #8 paperwork right. store in the country to a recording that Success in today’s market requires says “We’re sorry, this # is no longer in teamwork and great teams require great In real life, of course, it’s management’s service, and there is no new number.” coaches. Without a great team that works fault that the sales people can’t sell, together and without a great coach to make nobody taught them how to sell In real life, managers in the dealership it happen, you won’t get your dealership properly. And they aren’t motivated probably do make it happen when you out of the average rut. if some of the things you do in the have that great month or year, and you dealership de-motivate your sales get the credit, at least when you look in There are tons of sales people who have people. Plus, management hires the mirror. worked hard to increase their sales. They’ve inexperienced people who’ve never taken it upon themselves to succeed and it been successful, who weren’t motivated But in that monthly kick off meeting, shows. But they’re just one member on to begin with. the best coaches turn all that around and their sales team. And at many dealerships, say “Congratulations,” to those who there are only a handful of sales people who Sales people are working their followed directions and took the ball, are working hard to improve. deals their way, because that’s what ran with it and scored the touchdown. management has allowed to happen. The bad news is the rest of the selling team It’s a lot of trouble to teach, monitor Instead of doing everything the way the isn’t as interested, doesn’t follow your and require sales people to work their manager before you did it, why not make game plan and aren’t selling nearly as many deals the right way, instead. a list of the traits of a great coach. It’s vehicles as they could. The attitudes of really easy; just think of the top coaches these sales people not only hurt their sales, And sales people don’t do their follow in professional sports, what do the great it also hurts your top sales people, too, up because management doesn’t require coaches do to make their team the best? and literally can destroy your dealership’s that every sales person do follow up chance of real, long-term success. with every customer. Besides, if they Try this, put words like train, lead, required follow up, first they’d have to motivate, patience, goals, practice, direct, It’s the same in practically every dealership teach the sales people to do follow up. require, proud, respect, fair, driven, loyal around the country. In a group of ten sales So management would have to learn and consistent on your list. What else? people, they usually have one or two good how to follow up customers, too. Also, almost everyone reading this could ones, one or two okay sales people, four use a few good tips on how to pull all this or five below average sales people and • Unlike the ‘Bear’, in most dealerships, leadership stuff off, so get together with the a couple who should be put out of their when things go semi-good, average other managers at your next meeting and ‘selling’ misery right away. managers are the first to let everyone discuss how to be a great coach – it will know how great they worked those take your dealership to the next level. What’s the missing link? Good coaches. deals and about how many more sales Why is there no team spirit in so many they could have made if it weren’t for Next month, we will cover more ideas for dealerships across the country, no ‘esprit some of the worthless sales people they you and your management team to discuss. de corps’ and no common will to be the work with. best group of sales people they can be? Joe Verde is the President of The Joe Unfortunately, it’s always management. Let’s get a grip here, too, and try to Verde Group. He can be contacted remember who hired all those average at 866.429.6689, or by email at Most managers weren’t taught how to and below sales people you complain jverde@autosuccess.biz, or visit coach properly so they can lift some people about all the time. www.joeverde.com. 24 contact us at www.autosuccess.biz
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    Service Advisor Training Come by and see Jeff at Presented by... NADA Convention booth #4175! Also, come listen to Jeff speak at these convention dates and times: Sunday 2/1, 2:15pm - 3:30pm Monday 2/2, 8:30am - 9:45am Monday 2/2, 10:30am - 11:45am Tuesday 2/3, 11:00am - 12:15pm Come early to ensure you have a seat! Jeff Cowan All Skill Levels • Do you want to Increase Customer Paid Labor Sales and Parts Sales? I will turn your Service Clerks into • Do you want to Increase Customer SELLING Service Advisors. We deliver Satisfaction Scores? the most Intense Powerful Two Day • Do you want to Increase Customer Workshops You or Your Service Retention? Advisors Have Ever Experienced! • Do you want to set up a Non- Confrontational Complete Selling System and Culture? We also deliver our World Class • Do you want to learn to Sustain Training In-House On Your Service Growth? Drive or on DVD. We have recently re- • Do you want to learn how to Control Your Customers, and your Workday? recorded our DVD’s. They now offer • Do you want to learn how to Walk 40% More Content and are available Around Every Car, Every Time R ? in Spanish. • Do you want to learn the Sit, Flip, Pop and Look R Technique? • Do you want to Become a “Full Service Promise” R dealership? ASK FOR SUSAN FOR YOUR FREE DEMO DISK - RESERVE YOUR In-house on your service SEATING TODAY! SPACES LIMITED drive, offsite or on DVD 866.265.5552
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    leadership solution BrianBrian Tracy By Tracy Managing Your Time Perhaps the greatest a cellular telephone. It is something that balanced with family and personal goals. single problem that you use so that you can get more done in people have today a shorter period of time and eventually The third type of goals is your personal is ‘time poverty’. be paid more money. You must learn development goals. Remember, you can’t Working people that time management is not a peripheral achieve much more on the outside than have too much to do and too little time activity or skill. It is the core skill upon what you have achieved on the inside. for their personal lives. Most people which everything else in life depends. Your outer life will be a reflection of feel overwhelmed with responsibilities your inner life. If you wish to achieve and activities, and the harder they work, In your work or business life, there are worthwhile things in your personal and the further behind they feel. This sense so many demands on your time from your career life, you must become a of being on a never-ending treadmill other people that very little of your time worthwhile person in your own self- can cause you to fall into the reactive/ is yours to use as you choose. However, development. You must build yourself responsive mode of living. Instead of at home and in your personal life you can if you want to build your life. Perhaps clearly deciding what you want to do, you exert a tremendous amount of control the greatest secret of success is that you continually react to what is happening over how you use your time. And it is in can become anything you really want around you. Pretty soon you lose all this area that I want to focus. to become, to achieve any goal that you sense of control. You feel that your life really want to achieve. But in order to do is running you, rather than you running Personal time management begins with it, you must go to work on yourself and your life. you. It begins with you thinking through never stop. what is really important to you in life. On a regular basis, you have to stand And it only makes sense if you organize Once you have a list of your personal and back and take stock of yourself and what it around specific things that you want to family goals, your business and career you’re doing. You have to stop the clock accomplish. You need to set goals in three goals, and your self-development goals, and do some serious thinking about who major areas of your life. you can then organize the list by priority. you are and where you are going. You This brings us to the difference between have to evaluate your activities in the First, you need family and personal goals. priorities and posteriorities. In order to light of what is really important to you. These are the reasons why you get up get your personal time under control, You must master your time rather than in the morning, why you work hard and you must decide very clearly upon your becoming a slave to the constant flow of upgrade your skills, why you worry about priorities. You must decide on the most events and demands on your time. And, money and sometimes feel frustrated by important things that you could possible you must organize your life to achieve the demands on your time. be doing to give yourself the same amount balance, harmony and inner peace. of happiness, satisfaction and joy in life. What are your personal and family But at the same time, you must establish Taking action without thinking is the goals, both tangible and intangible? A posteriorities as well. Just as priorities cause of every failure. Your ability to tangible family goal could be a bigger are things that you do more of, sooner; think is the most valuable trait that you house, a better car, a larger television posteriorities are things that you do less possess. If you improve the quality of set, a vacation or anything else that costs of, later. your thinking, you improve the quality of money. An intangible goal would be to your life, sometimes immediately. build a higher quality relationship with The fact is your calendar is full. You your spouse and children, to spend more have no spare time. Your time is Time is your most precious resource. It time with your family going for walks or extremely valuable. Therefore, for you is the most valuable thing you have. It reading books. Achieving these family to do anything new, you will have to stop is perishable, it is irreplaceable, and it and personal goals are the real essence of doing something old. In order to get into cannot be saved. It can only be reallocated time management and its major purpose. something, you will have to get out of from activities of lower value to activities something else. In order to pick something of higher value. All work requires time. The second area of goals is your business up, you will have to put something down. And time is absolutely essential for the and career goals. These are the ‘how’ Before you make any new commitment of important relationships in your life. The goals, the means by which you achieve your time, you must firmly decide what very act of taking a moment to think about your personal, ‘why’ goals. How can activities you are going to discontinue in your time before you spend it will begin to you achieve the level of income that your personal life. improve your personal time management will enable you to fulfill your family immediately. goals? How can you develop the skills If you want to spend more time with your and abilities to stay ahead of the curve family, for example, you must decide Many people see time management as in your career? Business and career goals what activities you currently engage in only a business tool, like a calculator or are absolutely essential, especially when that are preventing you from doing so. 26 visit us at www.autosuccess.biz
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    continued A principle oftime management says of. So concentrate on working when you And the final question for you to ask that hard time pushes out soft time. This are at work so that you can concentrate on over and over again is, “What is the most means that hard time, such as working, your family when you are at home. valuable use of my time right now?” will push out soft time, such as the time Since you can only do one thing at a time, you spend with your family. If you don’t There are three key questions that you you must constantly organize your life so get your work done at the office because can ask yourself continually to keep that you are doing one thing, the most you don’t use your time well, you almost your personal life in balance. The first important thing, at every moment. invariably have to rob that time from your question is, “What is really important to family. As a result, because your family me?” Whenever you find yourself with Personal time management enables you to is important to you, you find yourself in too much to do and too little time, stop choose what to do first, what to do second a values conflict. You feel stressed and and ask yourself, “What is it that is really and what not to do at all. It enables you to irritable. You feel a tremendous amount of important for me to do in this situation?” organize every aspect of your life so that pressure. You know in your heart that you Then, make sure that what you are doing you can get the greatest joy, happiness and should be spending more time with the is the answer to that question. satisfaction out of everything you do. important people in your life, but because you didn’t get your work done, you have The second question is, “What are my to fulfill those responsibilities before you highest value activities?” In your personal can spend time with your spouse and life, this means, “What are the things that children. I do that give me the greatest pleasure and satisfaction? Of all the things that I could Brian Tracy is the Chairman & CEO of Think of it this way. Every minute you be doing at any one time, what are the Brian Tracy International. He can be waste during the waking day is time that things that I could do to add the greatest contacted at 866.300.9881, or by email your family will ultimately be deprived value to my life?” at btracy@autosuccess.biz. Mark Tewart’s - Guaranteed Program for Success FREE Newsletter! Go to www.tewart.com & click on newsletter. Are you having trouble getting your sales to the next level? Mark Tewart’s - G.P.S. will get you the results you want or you don’t pay! This is not just sales training! We offer total individual and organizational development with an emphasis on guaranteed implementation. After our organization has conducted an extensive survey of your current results, environment, and your desires for the success of your dealership, our certiÞed staff will work with your sales people and managers through various methods to ensure that you get to the next level or you don’t pay. We won’t accept every dealership into the Guaranteed Program for Success. A lot of dealers say they want greater success but aren’t committed enough to get the results 513.932.9526 they say they want. If you are committed and have a burning desire to reach another level of sales, gross proÞt, customer satisfaction and have a truly professional team... Please ask a Tewart representative about the G.P.S. program. 866.429.6844 january 2004 27
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    sales and trainingsolution Fran Taylor By Fran Taylor Now Is the Time to Plan Everything starts automatically sell more units by using train and assign them a specific topic that with goals and a prospecting tools with their name and the they must train on. plan. Look at what dealership’s name and phone number on you did last year, them. This is easy to do. If you think that this is and dissect your easy, it is. If you think it is hard, it is. Write dealership in all departments. Look at how Training should be on a daily basis every down your plan and stick to it. many vehicles you sold for each month. morning. Plan the month on what you How many sales people did you have to want to do. Make sure your sales people Fran Taylor is the President and CEO sell the amount of vehicles you sold? How are involved and do part of the training. of Taylor Techniques, Inc. He can be much did you spend on advertising each Post the monthly training schedule so contacted at 866.873.0041, or by email month and what kind of advertising did everyone knows when it is their turn to at ftaylor@autosuccess.biz. you use? Are you mixing your advertising up and doing a promotion each week instead of twice a month? Advertising. It is easy to improve stores if you stick to the basics. For every sales person you have, spend $250 a car advertising or $2,500 a month for that sales person. To deliver 100 units you should spend $25,000 for the month and have 10 sales people. Inventory. You must keep a mixed used car department for used cars. It is very crucial to get the vehicles ready within 72 hours. Dealerships should have at least one of the top sellers of different models sitting on their lot. Keep a model for 15 days then take it back to the auction. Make sure when you buy these models you can doctor or spiff them up with sport stripes, door edge guards, mud flaps, bug deflectors and other extras. You will not lose money doing this. Sales people should be held accountable to sell at least 10 units a month each and have a certain average gross. Post your grosses around the dealership: front-end, back- end, new and used, and CSI, if possible. Sales people should be required to have an appointment a day and mark it down on an appointment board. The appointment board ensures that your advertising dollars are not wasted money. Look at your past history and add 10 percent to everything: inventory, sales people, advertising and post grosses, make your sales people accountable with prospecting tools and require an appointment a day. Your service and parts will automatically increase by turning used cars faster and more of them. Your sales people will 28 check out www.autosuccess.biz
  • 29.
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    Friday, 9:10pm When your lender’s closed for the night, Chrysler Financial’s on call. With Chrysler Financial, what you get is a relationship. One that includes personalized, one-to-one service that represents our dedication to your automotive finance needs. To learn more about our commitment to your success, contact your Dealer Relations Manager. Forty years of finance. Forty years of relationships. Financing your investment. A member of the DaimlerChrysler Services Group
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    V i si t u s i n L a s Ve g a s N A D A 2 0 0 4 B o o t h 4 1 5 9 or call Keith Cooper at 800.527.1984 x8357 IF YOU THINK YOUR DEALERSHIP IS DOING WELL...YOU’RE HALF RIGHT. Selling cars is ONLY half of it. To make real money in today’s car business, your sales and F&I staff must be trained to sell service contracts, credit insurance, and after-market products. If you’re not consistently selling the whole package, you’re doing things half... well, you know. We can help. We’re EFG Companies. For over 25 years, EFG has been helping dealerships increase their F&I profits, often doubling them. We’re successful because we’re a comprehensive F&I service provider and we don’t do driven for your F&I success things half way. www.efgcompanies.com Why settle for half when you can have it all? To have it all, contact EFG at 800.527.1984 x 8357 Visit our website at www.efgcompanies.com
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