AutoSuccess Best of the Best NADA 2009 – Details Page 4
                                                          January 2009
January 2009
               FOCUS ON THE ‘WILDLY IMPORTANT’
                                                                    8    StephenR.Covey
                                                                                             address:
                                                                                             3834 Taylorsville Rd.
                    SUCCESS BEGINS IN YOUR MIND
                                                                    10   TomHopkins          Building A, Ste. 1B
                                                                                             Louisville Kentucky 40220
                                         GAME CHANGER
                     1 Solution for Automotive Internet Marketing   12   SusanGivens         phone / fax:
                                                                                             877.818.6620 / 502.588.3170
 WHAT CONSTITUTES A GREAT CUSTOMER EXPERIENCE?
                                                                    14   KarenDillon         web:
                                                                                             AutoSuccessOnline.com
                                                                                             AutoSuccessPodcast.com
                             HOPE IS NOT A STRATEGY
                         Gaging Providers for Cost Effectiveness    16   MarcSmith
                                                                                             team:
                                                                                             Susan Givens
                      CAN WE HANDLE THE TRUTH?
                                                                    18   PaulSnider          Publisher
                                                                                             sgivens1@autosuccessonline.com

                 PARTS CHOICES - NOT ULTIMATUMS
                                                                    19   LloydSchiller       Thomas Williams
                                                                                             VP & Creative Director
                                                                                             design@autosuccessonline.com
         WHAT’S THE DIFFERENCE BETWEEN DEALERS
                     SUCCESS AND FAILURE TODAY?                     20   MichealYork
                                                                                             Dave Davis
                                                                                             Editor and Creative Strategist
                     INTERNET SALES 20 GROUP XIII
                                                                    22   SeanV.Bradley       ddavis@autosuccessonline.com

                                                                                             Brian Ankney

                                                                    26
               LEADING THE WAY TO PROFITABILITY -                                            Sales-Improvement Strategist
                                                                         SeanStapleton
                             Loyalty and Membership Programs                                 super6@autosuccessonline.com

                                                                                             John Warner
                STOP WHINING AND START WINNING
                                 The Attitude Development Plan      28   PaulCummings        Sales-Improvement Strategist
                                                                                             jwarner@autosuccessonline.com
     YOU CAN’T GO BACK AND YOU CAN’T STAND STILL
                                                                    30   DalePollak          general information:
                                                                                             info@autosuccessonline.com
                  SMALLER PIECES, BIGGER PROFITS
                                                                    31   SteveBrazill        eNewsletter:
                                                                                             enews@autosuccessonline.com

                               RIGHT SIZE, RIGHT NOW
                                                                    32   RonAlexander        AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd.,
                                                                                             Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170.
                                                                                             Direct all subscription and customer service inquiries to 877.818.6620 or



                                                                    34
                                                                                             info@autosuccessonline.com. Subscription rate is $69 per year.
           WHY DO SALESPEOPLE TAKE SHORTCUTS?                            JohnDobrick         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



                                                                    36
                                                                                             contributing writers latitude in expressing advice and solutions; views
                          THE FOOLISHNESS IS OVER                        JohnBrentlinger     expressed are not necessarily those of AutoSuccess and by no means
                                                                                             reflect any guarantees. AutoSuccess accepts no liability in respect of the
                                                                                             content of any third party material appearing in this magazine or in respect



                                                                    40
                                                                                             of the content of any other magazine to which this magazine may be linked
                         CONSIDERING GOING DARK?                         MattBaker           from time to time. Always confer with legal counsel before implementing
                          Let’s Talk About What That Looks Like                              changes in procedures.© All contents copyrighted by AutoSuccess
                                                                                             Magazine, a Division of Systems Marketing, Inc. All rights reserved.



                                                                    42
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12
                               40                                   22                       helping to support...
StephenR.Covey
leadershipsolution



                                          FOCUS ON THE
                                          ‘WILDLY IMPORTANT’
                                           Leadership starts with    have only a 33 percent chance of getting       stakeholders? Your answers constitute
                                           defining priorities, but   excellent results.                             wildly important goals. Customers,
                     doesn’t stop there. Previously, I’ve talked                                                    employees, suppliers and investors all
                     about the gap between setting a goal and        How vital it is, then, to focus diligently     have a stake in these goals. Therefore,
                     achieving it. To close the execution gap, a     and intensely on only a few crucial goals.     everyone should be able to describe how
                     dealership must practice four disciplines:      While many of our goals at the dealership      the key goals:
                      • Focus on the wildly important goal           are important, only a few qualify as “wildly     • increase customer loyalty
                      • Create a compelling scoreboard               important.” A wildly important goal carries      • ignite the passion and energy of your
                      • Translate lofty goals into action            serious consequences. Failure to achieve           people
                      • Hold everyone accountable all of the         this goal renders other achievements             • favorably impact suppliers, business
                         time                                        relatively inconsequential.                        partners and investors

                     In this column, I will explain the first         Consider the situation of the air traffic       For a business, a goal cannot be wildly
                     discipline.                                     controller. At any moment, hundreds of         important unless it is crucial to the
                                                                     airplanes are in the air, and all of them      economics of the firm. Everyone in the
                     There’s a key principle that many fail to       are important. But the controller cannot       organization should be able to clearly
                     understand, hampering their ability to          focus on all of them at once. Her job is       define how the goal improves:
                     perform. According to science writer Nigel      to land them one at a time, and to do so        • revenue growth
                     Calder (The Mind of Man), one of the most       flawlessly. Every organization is in a           • cost reduction
                     self-evident characteristics of the conscious   similar position. Few can afford the luxury     • cash flow
                     mind is that “the mind attends to one thing     of divided attention; some goals simply         • profitability
                     at a time.” A person wearing spectacles         must be landed.
                     with one green and one red lens will see                                                       Wildly important goals bring the greatest
                     either green or red, but never some grayish     How do we know which goals are wildly          payback. Of all your potential goals, which
                     combination of the two.                         important? The first step in achieving the      few would bring you the most significant
                                                                     crucial goal is to clearly define it. Which     economic return?
                     Suppose you have an 80 percent chance of        goals bring the most leverage in terms
                     achieving a particular goal with excellence.    of strategic, stakeholder and economic         Putting the goals through the strategic,
                     Add a second goal to that first goal, and        priorities? All potential goals should pass    stakeholder and economic screens positions
                     your chances of achieving both drop to          through these three screens.                   a clear “why” behind the “what” of the
                     64 percent. Keep adding goals, and the                                                         goal.
                     probability of achieving them plunges           Organizational strategy is crippled unless
                     steeply. Juggle five goals at once, and you      it takes the form of a few vital goals that    The most vital work of the leader and of the
                                                                     everyone understands. Everyone in your         fully engaged team is to define the wildly
                     “...to define those goals so                     dealership should be able to define how         important goals — to define those goals so
                                                                     the goal:                                      clearly and to make the rationale so plain
                                                                       • directly supports the organization’s       that no one misses their significance. It is
                                                                          mission                                   to distinguish the wildly important from the
                                                                       • leverages core competencies                merely important and to focus intensely on
                                                                       • increases market strength                  it. You can’t afford to waste precious time
                                                                       • increases competitive advantage            and effort on anything less.

                                                                     Additionally, a goal cannot be wildly          Originally ran in CLO Magazine
                                                                     important unless it is the most                Stephen R. Covey, Ph.D., is co-founder
                                                                     consequential thing you can do to advance      of FranklinCovey, and is the author of
                                                                     your strategy.                                 the best-selling The 7 Habits of Highly
                           and to make the rationale                                                                Effective People. He can be contacted at
                           so plain that no one                      What are the most important things you         866.892.6363, or by e-mail at
                           misses their significance.”                should do to fulfill the needs of your          scovey@autosuccessonline.com.
 8




 www.autosuccessonline.com
TomHopkins
sales&trainingsolution



                                               SUCCESS BEGINS
                                               IN YOUR MIND
                                                A good attitude is one    I never see failure as failure, but only        success. Success demands its percentage of
                                                of the most important     as the negative feedback I need to              failure.
                         traits a sales professional can have. Most       change course in my direction. Outside a
                         people who fail in business fail because         restaurant with a lively bar, I once saw a      Here is a philosophy that I teach my
                         they don’t know how to keep their attitudes      gentleman who’d had too much to drink try       students to live by: I am not judged by the
                         positive on a daily basis. They start their      to unlock his car with the wrong key. No        number of times I fail, but by the number
                         careers learning and practicing the basics,      matter how many times he tried, the wrong       of times I succeed, and the number of times
                         applying these ideas and end up making           key still didn’t work. After I’d talked him     I succeed is in direct proportion to the
                         lots of money. Then, they go into a slump.       into taking a taxi home, it occurred to me      number of times I can fail and keep trying.
                         They will stay in their slump until they         that sometimes we all keep trying to make
                         go back to the fundamentals, until they          the wrong key unlock the door — keep            Work with this creed and the five attitudes
                         return to doing what they get paid for           using techniques that don’t work in our         toward rejection. What counts isn’t how
                         — accepting failure and rejection without        selling endeavors, keep applying the wrong      many transactions fall out, how many
                         letting it stop them.                            solution to the problem long after we’ve        doors slam, how many things don’t work
                                                                          tried it and failed.                            out or how many people go back on their
                         The key to success is in how you handle                                                          word. What counts is how many times you
                         failure. Handling failure does not come          I never see failure as failure, but only        pick yourself up, shrug and keep on trying
                         naturally to most people. It is an acquired      as the opportunity to develop my sense          to make things come together. There are
                         skill. Some of your emotions tell you to         of humor. Have you ever had a traumatic         challenges, obstacles and troubles in every
                         sulk and avoid any situations in the future      experience involving a sales presentation?      kind of business, but they are all temporary
                         that are likely to put you in line to feel the   Three weeks later, you finally tell someone      if you take control of your thoughts and
                         pain of rejection again. Other emotions tell     about it and suddenly that same event is        develop the right attitude. I believe that
                         you to get more out of life for yourself and     hilarious. The longer you wait to laugh, the    winners are winners because they’ve
                         your loved ones. Concentrate on what you         more that failure will hold you back. Make      learned to fuel their success drives by
                         have to gain, and learn how to change your       a determined effort to laugh sooner, and        overcoming failure.
                         attitude toward rejection.                       learn the trick of telling a good story on
                                                                          yourself.                                       World-renowned master sales trainer Tom
                         I am going to present five sayings that have                                                      Hopkins is the chairman of Tom Hopkins
                         helped me move forward in all areas of my        I never see failure as failure, but only as     International. He can be contacted at
                         life. Memorize them and recall them when         an opportunity to practice my techniques        866.347.6148, or by e-mail at
                                                                                                                          thopkins@autosuccessonline.com.
                         you’re rejected or have failed to achieve        and perfect my performance. Every time
                         what you wanted.                                 you present your service to others and they
                                                                          don’t buy, at least they gave you a chance
                         I never see failure as failure, but only         to practice. Many people don’t realize the        “The key to success is in
                         as a learning experience. Every sale             importance of this. Learn to appreciate the       how you handle failure.
                         that doesn’t go through is a learning            opportunity to become better.                     Handling failure does
                         experience; every challenge you have is
                         a learning experience. Learn from your           I never see failure as failure, but only as       not come naturally
                         failures. Thomas Edison, who conducted           the game I must play to win. Selling is a         to most people. It
                         more than 10,000 experiments on filaments         game. Life is a game. Both have their rules       is an acquired
                         before he produced a practical light bulb,       — luck plays a small part, but the winners        skill.”
                         was once asked, “How did you keep going          play ball. Over the years, I’ve discovered
                         after you failed more than 10,000 times?”        that a single rule dominates every situation:
                         Edison replied, “I did not fail 10,000 times;    Those who risk failure by working with
                         I learned 10,000 ways that didn’t work.”         more people earn more money; those
                         Like Edison, try to look at failure and          who risk less failure earn less. If you risk
                         rejection in a different light — as a learning   failure, sometimes you will fail. But every
                         experience.                                      time you fail, you’re that much closer to
 10




  www.autosuccessonline.com
Dealer.com Platform “Parts”
featuresolution
                                                                                                                                                                     keep the visitor longer and, ultimately, get
                                                                                                                                                                     them to act. To do this, dealers need intuitive   LVLC™ V2.0                                            ePricer™
                                                                                                                                                                     sites, available in English and Spanish, that     The platform includes a revolutionary                 Tool that prompts customers to submit
                                                                                                                                                                     give visitors the information they need in the    decision-making tool known as the Live                their contact information and receive an
                                                                                                                                                                     manner in which they want it. This includes       Visitor Lead Calculator™ (LVLC), an easy-to-          immediate price quote via e-mail.
                                                                                                                                                                     one-click inventory pages, full vehicle detail    use solution that enables dealers to estimate
                                                                                                                                                                     pages, vehicle reviews and compelling             leads and sales before they invest in the             Video Integration
                                                                                                                                                                                                                       site. Based on a decade of data collected             Includes Vehicle Showroom™ featuring
                                                                                                                                                                     inventory videos. For the dealer, more
                                                                                                                                                                                                                       from more than 8,000 dealer Web sites, the            CarFlix Virtual Test Drives™, keeping visitors
                                                                                                                                                                     than 35 lead-generating forms allow for an        LVLC can predict the approximate number               longer and making it easier to convert
                                                                                                                                                                     immediate connection to visitors, which is        of visitors a site will attract. Version 2.0 of the   them into buyers. Also includes a Video
                                                                                                                                                                     the Web site’s reason for existence.              product enables dealers to see how much               Streaming Toolkit and a Video Gallery. The
                                                                   “Changing the Game” with a comprehensive, feature-rich                                            Today’s customers are expecting video.
                                                                                                                                                                                                                       business they can expect from their paid              most recent video addition to the platform
                                                                                                                                                                                                                       search efforts, not just from their organic           is CarFlix™ with Human Voice, a process
                                                                         online sales and marketing platform, driving more                                           According to The Pew Internet and                 searches. Plus, based on the dealership’s             that automatically and instantly creates high
                                                                                              sales and more productivity.                                           American Life Project, almost half of all         average closing rates, the LVLC can even              quality, full-motion videos with real human
                                                                                                                                                                     Web users watched online videos last year.        estimate sales revenue.                               voices from pictures and data in a dealer’s
                                                                 multiple vendors, is fully integrated and        sales revenue for the dealership can even be       Clearly, it’s no longer enough for dealers to                                                           inventory system.
                                                                                                                                                                     post still or stock images of their inventory,    LeadMachine™
                                                                 comprehensive. In other words, the dealer        estimated. For dealers, the game changer in
                                                                                                                                                                     or even 360-degree views. They must now           Complete lead tracking system that enables            Sales Analytics™
                                                                 won’t have to learn how to make the parts        a tight economy is being able to accurately                                                          dealers to create an automated process for            A full set of sales, Web site and search
                                                                 play together — they were created to work        gauge their ROI.                                   also add videos of their inventory. Generic
                                                                                                                                                                     video that doesn’t promote each vehicle’s         assigning, following up and managing leads            ranking performance reports that can be
                                                                 together from the start.                                                                                                                              to individual sales reps, including tools such        downloaded or accessed via FTP using a
                              SusanGivens                                                                         Marketing: Control Your SEM Results                specific benefits just won’t do.
                                                                                                                                                                                                                       as Integrated Call Tracking and PowerMail™            single login. Assigned account managers
                                                                 Out of the box, information across the           The effectiveness of your Web site is                                                                (personalized, branded e-mail campaigns).             review the reports with each client, helping
                                                                 platform can be shared and acted on,             directly impacted by how it stands out in a        Your dealership can stand out from your
                                                                                                                                                                     competition using a patent-pending process                                                              to interpret and improve site performance.
                  A dealership is an eco-system. Every effort    enabling dealers to drive more traffic,           field of sites competing for the consumer’s                                                           Total Control Dominator™
                  is interconnected or interdependent and        capture better leads, and make faster — and      attention. The goal is that, when a customer       that can automatically create unique,
                                                                                                                                                                                                                       A simple-to-use search engine solution                Mobile Marketing
                  must perform in harmony for the dealership     more accurate — decisions. The Internet          types a search into Google or another search       realistic videos of every vehicle in a your       that enables dealers to build completely              Allows on-the-go shoppers to browse a
                  to survive and prosper. If one area is         department’s efficiency will be greatly           engine, your site stands tall at the top of the    inventory, using a human voice. Once              customizable paid search campaigns in                 dealer’s new and used online inventory via a
                  weaker than the rest, or doesn’t contribute    increased, benefiting “the body” as a whole.      results. Dealers hire SEM (Search Engine           vehicle data is loaded into an inventory          just seconds, allowing them to create ads             microsite optimized for smart phones, such
                  as expected, the other elements in the                                                          Marketing) vendors to achieve this goal. It’s      system, it produces a professional video          around specific keywords or go head-to-                as the iPhone.
                  dealership’s system are all at risk. Your      Example: If a vehicle is sold and                the way it’s been done for the past decade,        within minutes. Human voices can be               head with their competitors.
                  profit – your very survival – depends on all    removed from inventory, the platform             but is it the best way now?                        pre-recorded; then words and phrases are
                  the parts operating in unison.                 can automatically disable any online                                                                seamlessly blended to create video voice-         Managed SEO™
                                                                 ad specifically referring to that vehicle.        Today, dealers can take advantage of a             overs. A vehicle model’s key features and         Allows the Dealer.com team to continually
                  To put it another way, if your lungs, brain,   And, as a result, a dealer’s Internet ads        radically different approach from most             associated talking points are pre-loaded,         evaluate and upgrade keywords to ensure
                  kidneys and liver are all functioning          are never dated and always reflect current        traditional SEM vendors. Dealer.com’s                                                                a dealer’s site receives consistently high
                                                                                                                                                                     enabling a video for a truck to automatically
                  perfectly, but your heart underperforms,                                                                                                                                                             organic search engine rankings, more form
                                                                 inventory; ad dollars are more wisely spent      Total Control DOMINATOR™ (TCD)                     promote, say, the vehicle’s four-wheel drive      submissions and higher conversion rates.
                  your body is sick and can’t perform            and customers find the exact vehicle they         incorporates what the company refers to as         capability and V-8 engine.
                  effectively. If your heart stops, your         seek. Just as you don’t have to consciously      a “big brain” of SEM data, gathered over                                                             SmartSites™
                  body dies. Only a body with all its parts      remind your heart to beat, all this happens      the years from dealerships in every corner         Through this technology, the system takes
                                                                                                                                                                                                                       Award-winning, easy-to-navigate and
                  functioning correctly and efficiently can       automatically in the background.                 of the market. By applying sophisticated           it one step further: the automated script can     search-optimized Web sites that contain
                  achieve to its potential.                                                                       software rules and analytics to this data, it      discuss not just features but the benefits         multiple lead-generating forms, as well as
                                                                 Planning:                                        automates the process of keyword selection,        of those features as well. The result is a        sales tools such as SpecialsBuilder™ and
                  What does a dealership need to bring its       Know Your ROI before You Spend                                                                      high-resolution, convincing inventory             CarFinder™. Also includes SmartSite™
                                                                                                                  configuring more than 8,000 top keywords
                  various parts into harmony? A powerful         This platform consists of several                                                                   presentation with sound and special effects,      Composer, a tool that enables dealers to
                                                                                                                  and enabling dealers to create effective SEM
                  online sales and marketing platform,           components that take the dealer beyond                                                              such as panning, scrolling, zooming and           update and edit their own Web content.
                                                                                                                  campaigns in minutes. Dealers no longer
                  coordinating all functions so that each        a standard 360-degree view. Take, for                                                               pictures within pictures. This solution also
                                                                                                                  have to wait for a vendor, or manually
                  section can compliment and support the         instance, the Web site, perhaps a dealer’s                                                          includes a library of context sensitive music,
                                                                                                                  change keywords themselves.
                  other, is key. This would change the game      single most important sales lead generator.                                                         call-to-action dealer branding and built-in       work with each dealer to constantly improve           all, the platform is feature-rich, combining
                  for dealers, and create a solution where the   When a dealership hires a firm to construct       The system also aids dealers in bidding for        lead forms. It will make an impression.           results. You’ll know where you stand.                 tried-and-true solutions, with leading-edge
                  whole is greater than the sum of its parts.    a Web site, there is no recognized, objective    keywords to achieve the greatest ROI, and
                                                                                                                                                                     Managing: Executive Reporting                                                                           technologies. These are not mere features but
                                                                 way to determine if the Web site’s ROI will      helps link consumers to the page on your site                                                        One for All, and All for One                          best-in-class features wrapped in industry-
                  And now, the good news: That platform has                                                                                                          Made Easy
                                                                 pay off. The Web analytics and site traffic       they are searching for to eliminate frustration.                                                     A common expression that’s often used                 proven best practices.
                  been created.                                                                                                                                      With all these parts working in unison, it’s
                                                                 are presented after the site has gone live.      In addition, with this system, search                                                                in motivational seminars tells us that the
                  The Platform                                   By then, it’s too late and the dealer could be   engine marketing experts carefully analyze         critical to know what’s working — and             acronym T.E.A.M. stands for “Together                 Forty years ago, the Hertz Corporation
                  Dealer.com’s platform is the decade-long       stuck in a vendor contract with a low ROI.       keywords, customize Web content, enhance           what’s not — especially since dealers can         Everyone Achieves More.” The same can                 made marketing history with a successful
                  result of consulting dealers and applying                                                       the site’s behind-the-scenes coding, build         make changes on the fly. The platform’s            now be said about the game-changing                   ad campaign based on the slogan “Let
                                                                 By utilizing a decade’s worth of research        inbound and outbound links and submit the          activities are reflected in a set of fully         Dealer.com platform.                                  Hertz put you in the driver’s seat.” Today,
                  best practices to the solution dealerships
                                                                 and best practices collected from more           optimized site to search engine directories,       configurable executive reports. These                                                                    dealers can get in the driver’s seat of their
                  have been searching for.
                                                                 than 7,000 dealer sites across the country,      including Google, Yahoo! and MSN. Again,           reports include side-by-side metrics for a        Dealers benefit from the platform by enjoying          own online sales and marketing campaigns
                  Just as the human body is more than the sum    the Dealer.com platform allows dealers to        it’s as automatic as your heartbeat.               dealer’s advertising sources, such as cost        a more efficient process, and an increase in           through the use of a virtual platform.
                  of it’s parts, the platform uses its modules   estimate potential leads from sales from                                                            per sale, closing ratios and gross profit, as      sales and service leads. The platform is more
                  — a Web site, an ILM, vehicle images           the Web site before making the investment.       Selling: Engage Shoppers,                          well as data on the number of site visitors       cost-effective, allowing dealers to replace           And, don’t forget, selling cars is a team effort.
                  and an inventory management system, to         Dealers will know what they can expect           Close Deals                                        to average cost per contact to search engine      multiple vendors with one vendor making
                  name a few — to create harmony within          from their paid search efforts, along with       Getting the consumer to your site, however,        rankings. Additionally, these reports come        the marketing dollars go farther while at the         For more information about Dealer.com
                  the dealership. This solution, unlike other    their organic searches. Also, based on the       is only the beginning. With Dealer.com’s           with account managers who read and                same time driving dramatic productivity




                                                                                                                                                                                                                                                                                                                                 13
                                                                                                                                                                                                                                                                             contact us at 866.898.4617, or by e-mail at
12




                  platforms that are cobbled together from       dealership’s average closing rates, potential    platform, dealerships have a great tool to         interpret the numbers for the dealer, and         gains for the dealership. Perhaps best of             dealer.com@autosuccessonline.com.
KarenDillon
sales&trainingsolution



                                              WHAT CONSTITUTES A GREAT
                                              CUSTOMER EXPERIENCE?
                                                The quality of your     courteous language and empathetic tone.         When a customer calls for service, it is
                                                dealership’s customer   It can also be projected through proactive      tempting to tell them to “come on in”;
                         experience is ultimately determined by         contact with the customer, including timely     however, if we can’t accommodate them
                         the way customers feel after their last        follow up to inform them of the areas of        and complete the service on their vehicle
                         interaction. If the customer is unhappy,       concern once their vehicle problem is           properly and timely, we’ve not only
                         your dealership’s customer experience is       diagnosed, having their vehicle ready at the    possibly lost a service customer, but also
                         bad. If the customer doesn’t have a feeling    promised time and explaining thoroughly         damaged customer satisfaction. Train
                         one way or the other, your dealership’s        the repair and associated costs.                your advisors to greet the customers by
                         customer experience is mediocre. If the                                                        name — with a smile — so the customer
                         customer feels good, your company’s            A J.D. Power study makes some significant        feels they are important and the dealership
                         customer experience is satisfactory.           points as to the importance of service          personnel are pleased to serve them. I had
                         In today’s economy, as we attempt to           satisfaction:                                   a friend of mine ask me recently, “Why
                         encourage more customers to return to            • Customers satisfied with their service       do service advisors always seem to be
                         our dealerships for service, none of these         experience are more likely to return for    in a bad mood?” If this is the impression
                         experiences will accomplish our goal. We           service.                                    your advisors give your customers, some
                         need the customer to feel “delighted” —          • Customers satisfied with their               attention needs to be directed to this area
                         this will provide a substantial competitive        service experience are more likely to       immediately.
                         advantage.                                         repurchase the same make.
                                                                          • Customers satisfied with their               3. It’s important that the customer
                         Your customer’s experience and their               service experience are more likely to       understands there are services that should
                         feelings about their interactions with your        recommend the make, leading to new          be performed to prevent a safety or
                         dealership are actually driven by several          vehicle sales.                              mechanical problem. Always take the
                         specific factors:                                 • A gain in CSI score of 10 points is         time and provide a full explanation of
                                                                            estimated to add $40 to $300 per            what you are recommending, why you are
                         Time                                               customer annually.                          recommending it and the benefit to them
                         Most people today suffer from “time                                                            of having the service performed. We must
                         poverty.” Time is the one thing that           As you look at addressing these factors that    earn the customer’s trust by only selling
                         most customers don’t have enough of.           affect your customer satisfaction, what are     needed services. Trust is a huge deciding
                         So customers’ perceptions about your           some proactive steps you can take?              factor in a customer determining whether
                         dealership customer experience are largely                                                     or not to return to a dealership for future
                         influenced by time. This means you have to      1. Offer your customers the ease and            vehicle services and vehicle purchases.
                         reduce the time it takes for them to get in    convenience of making a confirmed service
                         touch with you, as well as the time it takes   appointment from your Web site 24/7.            4. Remember how critical the last
                         for them to communicate their need.            This will allow your customer to make           impression is. Be certain the last words
                                                                        their appointment at their convenience          the customer hears when leaving your
                         Competency                                     — not yours — and eliminates the need           dealership are “Thank You, Mr./Mrs….”
                         Customers need to believe that your            for them to call the dealership for a service   Also, when you utilize an online
                         dealership employees are good at what they     appointment. According to GM, 35 percent        appointment system, you can customize an
                         do. They must perceive that your personnel     of calls that come into the dealership for      automatically generated pre-CSI e-mail to
                         are well informed about the services           service are either dropped or the customer      the customer after the vehicle is picked up,
                         offered by your service department. So, to     is placed on hold and hangs up before           thanking them for their business, letting
                         project a perception of competency to your     speaking with someone. Also, as more            them know they may be receiving a survey
                         customers, you must make sure that each        and more customers begin making their           regarding their satisfaction with this service
                         member of your staff who interacts with        appointments online, in-bound telephone         and requesting they contact the service
                         your customers is fully empowered with         calls are reduced, lessening the number that    manager with any issues or concerns.
                         information that is complete, accurate and     do not get answered properly.
                         up to date.                                                                                    Constant attention to these areas can
                                                                        2. Keep and maintain an appointment             lead your dealership to increase your
                         Personalization                                schedule, and schedule your customers in        service business, service CSI and service
                         Customers don’t want to be treated like        properly, so they do not have to wait in        efficiency, along with providing “a great
                         a number. The differentiation of the           line on the service drive to be greeted by      customer experience.”
                         experience your dealership delivers will       an advisor. According to Auto University,
                         be contingent on how well your customers       the average wait time for a write up
                         feel recognized when coming to your            is 11 minutes. When we consider this
                         dealership for service.                        number, keep in mind we can assume the
                                                                        first person in line was written up right        Karen Dillon is the president of
                         Care                                           away; so consider the length of time            TimeHighway.com. She can be contacted
                         Customers like knowing that you care. This     some of the customers have to wait in           at 800.901.3170, or by e-mail at
 14




                         feeling of care can be projected through       order to achieve this average wait time.        kdillon@autosuccessonline.com.

  www.autosuccessonline.com
MarcSmith
sales&trainingsolution




                                              HOPE IS NOT A STRATEGY:
                                              Gaging Providers for Cost Effectiveness
                                                Many of you may         profits. A complete audit of the cost of         Do you have vesting and volume
                                                have seen the recent    the products should always be performed,        requirements?
                         article in Automotive News talking about       paying special attention to whether the         Having these requirements normally allows
                         the credit crisis and how lenders are          provider is truly bringing a cost-effective     the provider to set unrealistic goals. If these
                         becoming reluctant to finance dealership’s      solution to the table — no matter what their    goals are not met, the provider can keep
                         inventories, forcing hundreds of dealers out   size. I have found that the smaller, more       some of the dealer’s profits. You should
                         of business. Dealers have been subjected       specialized provider usually has a better       always receive 100 percent of your reserves
                         to poor sales, high gasoline prices and        cost-structure than the 800-pound gorilla.      and 100 percent of your investment income
                         destructive price wars.                                                                        with no requirements.
                                                                        Likewise, I want to point out that there are
                         The National Auto Dealers Association          two types of relationships dealers can have     Are there embedded incentives?
                         predicted that as many as 700 dealerships      with a provider which, in the end, affect       Never use embedded incentives. They
                         could close by the end of 2008. It is more     product profitability: a participating and       create nothing but misguided loyalty.
                         important than ever to evaluate the full       non-participating relationship. In a non-       Not to mention it is the best way for the
                         profit potential of every department in the     participating relationship, the dealer simply   provider to use your money to incentivize
                         dealership.                                    remits the cost of the products and retains     your people.
                                                                        a small profit. When a dealer participates,
                         Perhaps dealers should start by taking         it gives them the ability to share in the       Do you receive 100 percent of
                         a closer look when dealing with their          reserves and investment income. When a          unused maintenance coupons?
                         providers. After all, the area in the          dealer is participating the agreements could    In most cases the provider takes up to 50
                         dealership that can offer the largest          be purposefully written in a way that might     percent of the dealer’s unused maintenance
                         deliverable margin on the current volume       not deliver 100 percent of the profit to the     coupons and does not even seed the
                         of business is the Finance and Insurance       dealer. The first red flag should be raised       dealer’s accounts with maintenance
                         portfolio. In fact, most dealerships can       if your provider is reluctant and drags their   reserves. Watch out for this.
                         increase deliverable profits by as much         feet when asked to deliver the agreements
                         as $300,000 per year without selling any       for your audit. Once granted access to them,    In today’s business climate, taking a
                         additional vehicles. What today’s dealer       consider the following to determine just        close look at all products and services is
                         needs is a business strategy of efficiency.     how well your provider agreements deliver:      a prudent move and will make your entire
                         Dealers need to be more cost-effective on                                                      operation more efficient and profitable. If,
                         everything from advertising and personnel      What is in your administrative fees?            after putting your agreements to the test,
                         to the cost of goods and services and the      In many of the agreements I have read,          you elect to change your provider, be sure
                         providers they obtain them from.               language regarding administrative fees          the products your new provider offers are
                                                                        has not been clear. Generally, these            backed by an “A” rated carrier.
                         First, I recommend reviewing all expenses.     administrative fees are made up of several
                         When dealers take a drilled-down approach      components, included no doubt to hide           We can all hope the market comes back
                         to their finance portfolio,                        additional costs and confuse dealers.        strong, that the banks buy deeper and the
                         they can often find nuances                        Remember, your administrative fee            economy comes back fast, but hope is
                         in their agreements that cost                     should be inclusive of all fees, including   not a strategy. When you position your
                         them enormous                                                administrative, stop loss and     dealership with top-rated products at
                                                                                                   dealer obligor.      the lowest possible costs, it will set the
                                                                                                                        foundation for additional margins and
                                                                                                                        improved customer satisfaction as the
                                                                                                                        market rebounds and grows. Good luck and
                                                                                                                        good selling.

                                                                                                                        Marc Smith is the president and CEO of
                                                                                                                        Marc Smith International LLC. He can be
                                                                                                                        contacted at 866.665.4479, or by e-mail
                                                                                                                        at msmith@autosuccessonline.com.
 16




  www.autosuccessonline.com
PaulSnider                                                                                                                                                            LloydSchiller




                                                                                                                                                                         marketingsolution
sales&trainingsolution



                                              CAN WE HANDLE                                                                                                                                                         PARTS CHOICES -
                                              THE TRUTH?                                                                                                                                                            NOT ULTIMATUMS
                                               When speaking with         showed an average credit score of 544. This    applicants who rent versus those who own                                                    I want you to be open      Sometimes the original equipment part
                                               finance executives,         means we have to work smarter in order to      was only 14 points. That tells us we can no                                                 all day Saturday. I        prices out too expensively, and our customer
                         there appears to be one common difference        gain more approvals and deliver a higher       longer assume that, because a person rents,                         want you to market to and retain your pre-         ends up going elsewhere. If our competitor
                         between those who are very successful and        number of vehicles.                            they have worse credit than homeowners.                             owned customers. And now I want you to             performs a quality repair, we didn’t lose the
                         those who simply remain stuck at the same                                                                                                                           offer choices to your customers. I want you        job, we’ve lost the customer… permanently.
                         volume month after month. That difference        • Privacy fears have caused customers to       • Customers want us to give them all                                to stop the “take it or leave it” mentality.       There are numerous parts you can offer
                         is “understanding the truth” about non-prime     fill out applications with bogus information.   the information prior to coming into                                                                                   BEST, Better, good choices on: alternators,
                         customers and why they often provide us          Because of this, we must do a better job       the dealership, which often results in                              If you buy a concert ticket, there are             starters, batteries, water pumps, steering
                         bogus information.                               interviewing customers.                        appointments never showing up. Train your                           different prices for different seats. If you       gears, power steering pumps, steering
                                                                                                                         entire staff how to handle outbound calls to                        go to McDonalds, they have different               gears, ball joints, tie rod ends, brake pads,
                                                                          • Recently, a Florida-based marketing          customers who have applied and make sure
                         Long before instant bureau scores, electronic                                                                                                                       sizes of practically everything they offer         brake rotors and drums, master cylinders,
                                                                          company contacted 1,500 customers in 20        they understand the importance of getting
                         approvals and Internet leads, we were                                                                                                                               on the menu. These businesses, like most           power brake boosters, A/C compressors,
                                                                          states who applied for credit online in the    that person to show up. Don’t lose sight of
                         forced to accept every lead at face value,                                                                                                                          businesses, are offering you options. Your         condensers, evaporators, heater cores and
                                                                          past month, where 41 percent said they         the fact this customer may have cash they
                         contact the customer, arrange for them to                                                                                                                           choice — if you can’t afford front row seats,      radiators.
                                                                          purchased a vehicle. Not all, however, were    are not telling you about, or a co-signer who
                         come in and, most of all, conduct a proper                                                                                                                          how about something further back, but more
                                                                          from the dealership that received the lead.    can put strength into your deal.
                         interview. Successful dealerships still                                                                                                                             affordable? Need something just to hold you        Since the automakers make very few of
                                                                          That tells us that just because customers do
                         operate that way; however, a good number                                                                                                                            over until dinner — how about small fries          their own parts anymore, they use outside
                                                                          not buy today they are still in the market     The bottom line is, in order to increase
                         of managers still believe that whatever is on                                                                                                                       and a small soda?                                  suppliers who manufacture, box and ship
                                                                          and, with proper follow up, could buy soon.    sales, dealerships need to work every
                         a lead sheet is real and only call customers                                                                                                                                                                           these parts for the automakers, as well
                                                                                                                         lead, go back to the basics, conduct proper
                         back if their beacon score is high enough        • Another survey with a national bank                                                                              We do it in the vehicle sales department           as other supply chains, including the
                                                                                                                         interviews and accept the fact that customers
                         for instant approval. Let’s take a look at the   discovered that more than 40 percent of                                                                            — new, certified pre-owned and pre-                 aftermarket.
                                                                                                                         today have many choices and must be
                         Facts/Truth surrounding non-prime credit         customers apply numerous times at different                                                                        owned. Every new vehicle comes with a
                                                                                                                         worked properly.
                         customers today.                                 sites. That is why we continue to see                                                                              variety of trim packages and prices. The           The good news is the aftermarket vendors
                                                                          duplicate leads.                               Paul Snider is the CEO of Voisys. He can                            finance department has a myriad of choices          make it easy for you to offer these choices.
                         • Credit quality continues to decline; a                                                        be contacted at 866.492.9209, or by e-                                                                                 Top-quality providers, CARQUEST and
                         recent survey of over 325,000 applications       • The difference in credit scores between      mail at psnider@autosuccessonline.com.                              when it comes to protection plans and
                                                                                                                                                                                             other aftermarket items; yet many service          NAPA have programs designed for new
                                                                                                                                                                                             departments hold steadfast to the belief that      vehicle dealers. Web-based parts catalogs
                                                                                                                                                                                             the customers are coming to your service           make it easy for your service advisors and
                                                                                                                                                                                             department to pay top dollar to have their         counter people to check pricing and local
                                                                                                                                                                                             vehicle serviced, and that’s just the way it is.   availability. Then, they can offer BEST,
                                                                                                                                                                                                                                                Better, good choices to your customers
                                                                                                                                                                                             Now before you say, “But we offer                  wherever such options exist.
                                                                                                                                                                                             competitive prices for our maintenance
                                                                                                                                                                                             work, and, look, we have choices for tires,”       You will use these same quality (not junk)
                                                                                                                                                                                             consider why you are doing that. Is it             aftermarket options to offer your customers
                                                                                                                                                                                             because the customer would otherwise never         choices. By telling your customers “we
                                                                                                                                                                                             visit your service department more than            already did your shopping for you, and here
                                                                                                                                                                                             once? All of the factory-trained technicians       are the choices available,” we have proven
                                                                                                                                                                                             in the world will not convince a customer          you can close more service and parts sales,
                                                                                                                                                                                             to overpay more than once or to authorize a        and retain more customers.
                                                                                                                                                                                             repair they cannot afford.                         Taking care of your customers results in
                                                                                                                                                                                                                                                them coming back for more service, more
                                                                                                                                                                                             When a customer is given a quote for a             parts and future vehicle purchases — and
                                                                                                                                                                                             repair and he says, “Let me get back to            maybe even in recommending you to their
                                                                                                                                                                                             you,” what do you think he’s doing? Do you         friends. Not offering choices is basically
                                                                                                                                                                                             think he’s calling his friends to tell them        issuing ultimatums, and Americans don’t
                                                                                                                                                                                             what a great dealership he took his vehicle        respond well to ultimatums (“You need a
                                                                                                                                                                                             to today? Each customer is unique; some            new starter. Take it or leave it, bub.”).
                                                                                                                                                                                             may only need their vehicle to last until they
                                                                                                                                                                                             have an opportunity to sell it, others may         Yes, I want you to offer parts choices. I want
                                                                                                                                                                                             plan on keeping their vehicle forever. By          you to be open all day Saturday. I want you
                                                                                                                                                                                             giving your customer only one choice, we’ve        to take care of the pre-owned customers. I
                                                                                                                                                                                             given them a reason to shop us.                    want you to be successful.
                                                                                                                                                                                             In order to provide the best opportunity           Lloyd Schiller is the founder of Dealer
                                                                                                                                                                                             to retain your customers, use your best            Services Corporation, a division of NCM
                                                                                                                                                                                             efforts to offer your customers two or three       Associates. He can be contacted at
                                                                                                                                                                                                                                                866.703.1479, or by e-mail at




                                                                                                                                                                                                                                                                                                                            19
                                                                                                                                                                                             choices — BEST, Better, good — when it
 18




                                                                                                                                                                                             comes to some suggested parts and repairs.         lschiller@autosuccessonline.com.

  www.autosuccessonline.com                                                                                                                                                                                                                                   the #1 sales-improvement magazine for the automotive professional
MichaelYork
sales&trainingsolution


                                               WHAT’S THE DIFFERENCE
                                               BETWEEN DEALERS SUCCESS
                                               AND FAILURE TODAY?
                                               What’s the difference      I’ve mentioned on several occasions a                 done or seen or achieved or provided to
                                               between the masses         powerful lesson I’ve gotten from the book             the marketplace. What’s best with you?
                         and the true “car stars” in the marketplace?     Change the Way You See Everything. I was              By focusing on what’s best, it provides
                         Between the individuals and organizations        impressed by the overriding message in the            a measure of encouragement and
                         navigating these uncharted waters of a           book. Here’s the message...                           positive reinforcement allowing you
                         shifting economy and those crashing on the                                                             to make decisions that bring greater
                         rocks of the same old ways of doing things?      Most people focus on these two things:                commitment.
                                                                           1. What’s worst about what’s going on
                         How lucky they are? Their location? How              right now in their life, or work, or “the      2. What’s next for you, your business,
                         about their focus?                                   news” or whatever. What’s the worst               your life, your family, your (fill in the
                                                                              thing you can imagine? Now focus on               blank)…
                         What should you and I be focused on                  that for a day or week or weeks and see
                         today? What are most individuals focused             what happens — is it any wonder that,         When you focus on what’s next, it brings
                         on, and does it really have anything to do           if this is the focus of most individuals,     an energy and inertia that propels you in
                         with how things work out?                            we are a fearful and worrying society?        that direction. It’s actually a law that states
                                                                                                                            a body at rest tends to stay at rest, while
                         If you’re a photographer, focus is key. Lose       2. What’s happened, happening or may            a body in motion or a mind in motion to
                         your focus as a leader and your team or                  happen (see #1). In essence, something    remain in motion or be propelled in the
                         company will soon follow. Take your eye                  that is beyond your control.              direction of the new thing that is next.
                         off the ball as a hitter or wide receiver, and
                         you’re down and out — no touchdown,              That’s the prevailing victim mentality            This is the kind of “entrepreneurial
                         you’ve struck out. And so it is in the           that says you’re at the mercy of outside          adrenalin” that most individuals who opened
                         marketplace today, focus is critical.            forces; more fear and worry that literally        their own business or started an enterprise or
                                                                          paralizes individuals from taking action          pursued an idea have felt. And it’s difficult
                                                                                                      and lulls them        to explain to anyone who hasn’t.
                                                                                                      into a pattern
                                                                              Bo




                                                                                                      of “waiting on        It’s an entrepreneurial experience that brings
                                                                                ot
                                                                                 N 919




                                                                                                      things to change      positive energy and can bring an excitement
                                                                                  h1
                                                                                        AD N




                                                                                                      or someone            and a passion that transcends the day-to-day
                                                                                          A ew
                                                                                           20 O




                                                                                                      else to change        stuff that we all have to deal with.
                                                                                             09 rle




                                                                                                      things.”
                                                                                                                            It’s just that when we focus on what’s next,
                                                                                                 nsa




                                                                                                        If you were         all the other stuff seems to become less and
                                  YOU HAVE CUSTOMERS                                                    going to change     less a paralyzing force and must step aside
                                                                                                        things, would       for anyone who is on their way to what’s
                                    AND PROSPECTS.                                                      you wait for        next and has made a commitment to go
                                                                                                        everyone else to    there.
                                                                                                        change or just

                                      WE HELP YOU GET                                                   begin with you?     If you need some positive reinforcement
                                                                                                                            to help with your focus on what’s really

                                    A LOT MORE MILEAGE                                                  Here’s the power
                                                                                                        of the “Change
                                                                                                                            important today, go back to basics
                                                                                                                            with some of these books and timeless

                                       OUT OF THEM.                                                     the Way You
                                                                                                        See Everthing”
                                                                                                                            messages:
                                                                                                                              • Think and Grow Rich by Napoleon Hill
                                                                                                        message. The            (re-read it)
                                                                                                        two things that       • The Strangest Secret by Earl
                                                       Let’s roll.                                      the uncommon            Nightingale
                                                                                                        minority (top
                                                                                                        performers, high    Don’t neglect the power of positive
                                                                                                        achievers, “car     messages and focusing on these two things
                                                                                                        stars,” etc.) are   that bring you through the difficult times
                                                                                                        focused on:         toward big success: What’s Best and
                                                                                                                            What’s Next.
                                             Innovative e-newsletter solutions.                         1. What’s
                                                                                                        best (just the      Michael York is a professional speaker,
                                     866-964-6397         imnLoyaltyDriver.com                          opposite of the     writer and business consultant. He can
                                                                                                        majority) about     be contacted by e-mail at
                                                                                                        what’s now or       myork@autosuccessonline.com, or visit
 20




                                                                                                        what you’ve         www.MichaelYork.com.

  www.autosuccessonline.com
SeanV.Bradley
sales&trainingsolution



                                               INTERNET SALES
                                               20 GROUP XIII
                                               We recently just          on their faces, and hear it in their voices.   work weeks. You will crash and crash hard.
                                               concluded another                                                        Over the years I have seen numerous people
                         successful Internet Sales 20 Group. Dealer      One thing I made clear to them, as I want      die. That’s right I said die. It is very sad;
                         principals, GMs and OEMs traveled from          to make clear to all of you reading this, is   they put all of their time, energy and essence
                         all over the United States to get educated      as Stephen Covey would say, “we need to        into the job.
                         on Internet sales. Given this economy, with     sharpen the saw,” meaning you can’t keep
                         everything going on — the uncertainty, the      going at a crazy pace at your dealership,      Some people are workaholics, some are
                         fear, etc. — I could see the stress and panic   bell-to-bell, six-day, seven-day or 13-day     forced to by Gestapo management and
                                                                                                                        others simply feel that they have no other
                                                                                                                        choice because they are commissioned
                                                                                                                        based, and they need to keep working to
                                                                                                                        support themselves and their families. The
                                                                                                                        problem is that there is something called a
                                                                                                                        point of diminishing return. Meaning, there
                                                                                                                        is only so much you can squeeze out of
                                                                                                                        something.
                                                                                                                        Covey says that there are four main
                                                                                                                        categories in which you need to sharpen
                                                                                                                        your saw:
                                                                                                                        Physical — exercising, walking, running,
                                                                                                                        yoga, sports etc…
                                                                                                                        Social/Emotional — spending time with
                                                                                                                        spouse, children, family, going on a date,
                                                                                                                        movies, talking with other people not work
                                                                                                                        related, clubs, dancing, etc… Have fun!
                                                                                                                        Mental — Reading books, magazines,
                                                                                                                        Web sites and blogs; puzzles, Sudoku,
                                                                                                                        having fun on Google, practicing word
                                                                                                                        tracks, objections and rebuttals, conducting
                                                                                                                        research about automotive Internet sales and
                                                                                                                        business development for your dealership.
                                                                                                                        Mental “sharpening of the saw” can be for
                                                                                                                        fun as well as for mastering your craft.
                                                                                                                        Spiritual — Going to church, volunteering,
                                                                                                                        meditating, centering yourself. If you are
                                                                                                                        not happy and at peace within yourself, you
                                                                                                                        will not be able to achieve your maximum
                                                                                                                        potential.
                                                                                                                        If you are working in an Internet department,
                                                                                                                        business development center or phone room,
                                                                                                                        you cannot make call after call after call
                                                                                                                        after call every day, six, seven or more days
                                                                                                                        without a day off. You need to sharpen the
                                                                                                                        saw. I know it sounds hard to accept if you
                                                                                                                        need money now, but I promise you that you
                                                                                                                        will be more productive and more on your
                                                                                                                        game if you have recharged your batteries.
                                                                                                                        We often lose sight of the obvious, such as
                                                                                                                        “sharpen the saw.” Make a commitment to
                                                                                                                        yourself and your dealership that you are
                                                                                                                        going to start taking better care of yourself.
                                                                                                                        Sean V. Bradley is the founder and CEO
                                                                                                                        of Dealer Synergy, a nationally recognized
                                                                                                                        training and consulting company in
                                                                                                                        the automotive industry. He can be
 22




                                                                                                                        contacted at 866.648.7400, or by e-mail at
                                                                                                                        sbradley@autosuccessonline.com.
  www.autosuccessonline.com
NADA
                                          BOOTH
                                          #1448



      Gain an
 Unfair Advantage
For Your Dealership

    Call Today
 1-800-564-1875


        Search to Sold

      www.tkcarsites.com


                         ©2008 TK Carsites. All rights reserved.
SeanStapleton
marketingsolution


                                         LEADING THE WAY TO                                                                                                               Get the most out of your advertising
                                         PROFITABILITY -
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                                                                                                                                                                        dollars by using Aspen’s proven programs
                                            The strongest           any services from that dealer in the past nine    best reason to get those customers back to
                                            consumer brands         months. As an industry, we have to improve        your dealership for whatever the reason.          Individual Dealer Promotions
                    design their loyalty and rewards programs       those statistics if we’re going to succeed.
                    to create long-term, reliable relationships     Of course, it’s true one oil change here and      Statistics continue to show retailers offer                                                                                                                                           SPECIAL OPPORTUNITY FOR
                                                                                                                                                                                                                                                                                                CUSTOMERS AND SELECTED NEIGHBORS OF ABC CHEVROLET




                    with their customers. Major companies like      there is not going to add much profit to the       loyalty and rewards program because                                                                                                                               Dear Sample,




                    BestBuy or Southwest Airlines understand        bottom line. But it’s not about just one visit.   they work, but not all loyalty and rewards         PROGRAM INCLUDES:                                                               Sample,
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                                                                                                                                                                                                                                                                                                                                                                                          7,000                                    IN
                                                                                                                                                                                                                                                                                                                                                                                                                                   REBATES**
                    trust has to be built the old-fashioned way     the next vehicle and the next. This strategy
                                                                                                                                                                                                                                                                                                                                                                             TO



                                                                                                                                                                        • Dynamic IVR Phone System (optional)                                                                           UPGRADE LOCATION:

                                                                                                                                                                                                                                                                                        ABC Chevrolet
                                                                                                                                                                                                                                                                                                                                                                                                            EVENT DATES:

                                                                                                                                                                                                                                                                                                                                                                                                            Friday, June 27th


                                                                                                                      Effective and successful programs offer
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                    - step by step, one transaction at a time.      not only means good business for the dealer                                                         • Supply of Premiums
                                                                                                                                                                                                                                                                                        Anytown, USA 12345
                                                                                                                                                                                                                                                                                        888-888-8888
                                                                                                                                                                                                                                                                                                                                                                                                            July 1st, 2008
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                                                                                                                                                                                                                                                                               trade-in value. Deductions will be made for excessive mileage, wear and/or damage.




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                    customers will not only survive, but can        accessories during an average four-year                                                                                                                                                                                                                                                                                                                                                                   Premium Fulfillment
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 26




                                                                                                                                                                        Atlanta • Chicago • Dallas • Detroit • Los Angeles • Morristown • New York • Phoenix • Tampa • Toronto                                                                                                                                                                                                 Automotive Direct Marketing.”

                                                                                                                                                                                                                  Copyright © 2008 Aspen Marketing Services, Inc. All rights reserved.
 www.autosuccessonline.com
PaulCummings
sales&trainingsolution


                                               STOP WHINING AND
                                               START WINNING
                                               The Attitude Development Plan
                                                 Newsflash! The             you let those who possess no inspiration,       You Must Value Yourself
                                                 world is not perfect,     no desire, no dreams, no goals rob you of       Let me reveal a secret to you: It is
                         and neither is a career in the automotive         your own? There is no good, reasonable or       impossible for others to like, love or
                         industry. Everyone wishes their journey           intelligent answer to these questions. The      believe in you more than you do. I have
                         were a simple and uncomplicated trip, but         remedy is to follow the simple but powerful     witnessed people mired in negativity and
                         that is not the reality of the world we live in   advice I offer below:                           self-pity because they are in a mode of
                         or the industry we work in.                                                                       personal destruction. Somewhere along
                                                                           “ Today, I will refuse to associate with        the twists and turns of life they lost their
                         The brutal truth is that sometimes life is        anyone or anything that might infect and        self-confidence and belief in themselves.
                         difficult. What measures a human being is          harm my mind with mediocrity or negativity      Have you ever been around someone who
                         the spirit and attitude they display during       regardless of who or what it is.”               can’t see any good in themselves? They
                         their most trying and difficult moments. In                                   – Paul Cummings      always ask negative questions like “Why
                         fact, it is in these moments we must rely                                                         does this always happen to me?” These
                         heavily on our attitude, faith and belief if      Feed Your Mind Positive Thoughts                negative questions invite their “ghost”
                         we wish to persevere. Whining, moaning,           Have you ever eaten a bad meal? Did you         (your little voice) to finish them off. You
                         groaning and complaining when things              enjoy the result of putting the spoiled food    must bring this pattern of behavior to an
                         are tough serves no purpose whatsoever. It        into your system? Of course not. However,       immediate halt. The fact is you didn’t come
                         may give you some temporary pleasure as           because your body has a wonderful self-         to this earth with a spirit of fear or equipped
                         you spew your negativity forth so others          protection system that helped to purge          with limiting beliefs. You came here
                         can join you in your personal pity party.         your system of the problem, you were            equipped for greatness, armed with power
                         However, until you stop the whining, I            able to recover rapidly. I wish we had          and destined for personal victory and high
                         promise you it will remain difficult for you       the same system for protection against          achievement. Don’t you think it is time
                         to start truly winning. The choice is yours.      negative thoughts. The truth is the ingestion   you reclaim and reestablish your “winning
                                                                           of negative thoughts is 100 times more          beliefs” and personal power? I certainly
                         “The strongest principle of growth lies in        damaging than spoiled food. Why? The            do. If you agree and you are ready to stop
                         personal choice.”                                 answer lies in the simple fact that human       whining and start winning, then follow this
                                                      – George Eliot       beings tend to replay negative thoughts over    simple advice:
                                                                           and over. In fact, this dangerous process is
                         Eliminating Negative Relationships                akin to continually self-inflicting career-      “I will make a list of all my positive
                         In my career I have noticed a trend that zaps     ending wounds by choice. What about you?        qualities and attributes. I will have this list
                         the knowledge, attitude, skills and habits        Do you protect your mind as a sacred part       embossed on a card that I will carry with
                         out of even the strongest human being.            of your make-up? Do you intentionally           me everyday. Anytime I have a moment
                         What is this trend? If you continually            feed your mind positive messages as a           of doubt or negativity, I will immediately
                         associate with negative people you are            means of building emotional health and          read the card as a means of reinforcing
                         going to fall victim to their way of life. To     a winning attitude? If the answer is “no,”      my beliefs. I will operate with a winning
                         associate with impossibility thinkers is to       please follow this simple advice and reap       attitude from today forward.
                         surrender by choice. I don’t believe in the       the benefits:                                                               – Paul Cummings
                         “blame culture” we live in, so let me set you
                         straight before you blame the people you          “ I will drink from good books everyday
                         associate with daily. It’s your fault. No one     until I am intoxicated by the power of
                         can force you to associate with people who        positive thinking. I will not allow negative
                         live their life in a negative manner. Why         thoughts to course through my mind
                                                                                                                           Paul Cummings is president and CEO of
                         would you make the choice to associate            uninterrupted. I will instead ingest positive   Paul Cummings Enterprises. He can be
                         with half-hearted traveling companions            quotes to enhance my attitude.”                 contacted at 866.865.3171, or by e-mail
                         on the way to your dreams? Why would                                         – Paul Cummings      at pcummings@autosuccessonline.com.
 28




  www.autosuccessonline.com
DalePollak                                                                                                                                                                SteveBrazill




                                                                                                                                                                         sales&trainingsolution
sales&trainingsolution



                                              YOU CAN’T GO BACK AND                                                                                                                                                     SMALLER PIECES,
                                              YOU CAN’T STAND STILL                                                                                                                                                     BIGGER PROFITS
                                              By the time you read       what is occurring on Capitol Hill, represents   dealers to reduce their inventories as                                                           Lifting small objects    within a department, such as wholesale
                                              this article, it will be   the greatest immediate threat to the retail     quickly as possible. The ideal position                                                          is usually easier than   activities within the parts department or
                         2009 but due to printing deadlines, I am        automobile dealer. This is because every        would have been to have had no used                                      lifting large ones. If you are struggling to     the quick-lube segment of the service
                         writing this in mid-December. Without           vehicle in stock after January 1 is prone to    inventory on January 1 and, instead, a pile                              maintain profitability in current market          department.
                         the knowledge of what Congressional             unprecedented devaluation. As you read this     of cash to buy fresh units at bargain prices.                            conditions, consider managing your
                         negotiators will decide, I nevertheless         article, I believe that we will already be in   To the extent that you are in a position to
                                                                                                                                                                                                  organization in progressively smaller pieces.    Because break-even analysis is about the
                         believe the events that will impact the         the midst of the largest deflationary period     buy vehicles in this deflationary market,
                         dealer community in 2009 will be as             in the history of used cars.                    you are very fortunate. However, for                                                                                      relationship between a business unit’s
                         dependent on how well you manage your                                                           those vehicles currently owned, I would                                  Common practice segments dealerships             gross profit and its overhead, the results
                         own used car lots as on any decisions made                                                      advocate immediate disposition of aged                                   into departments which can be managed            provide an opportunity for proportional
                         on Capitol Hill.
                                                                                 “This is because                        units through a means that I call “whole-                                as profit centers: new vehicle sales, used        response. For example, performing a
                                                                                  every vehicle in                       tailing.” This means utilizing traditional                               vehicle sales, service and parts. A simple       simple break-even analysis of the parts
                         Right now, there are an unprecedented                  stock after January                      retail channels to sell vehicles at wholesale                            truth is that if each profit center produces      department will provide two actionable
                         number of under-water vehicles awaiting                   1 is prone to                         prices. Whatever losses are incurred with                                a profit every month — even if only one           pieces of information. At one extreme, it
                         sale at the auctions. These supplies have                unprecedented                          this strategy will pale in comparison with                               dollar — the dealership will never operate       reveals the minimum level of gross profit
                         grown as a result of the unwillingness of                 devaluation.”                         the losses that will ensue should you wait.                              at a loss. In a store that is losing money,      (and sales) necessary to cover a given level
                         their owners to let them go to the highest                                                      And, I take limited comfort in the hope                                  getting each department to its break-even        of overhead — at the other it reveals the
                         bidder because, for the most part, these                                                        that, because spring is right around the
                                                                                                                                                                                                  point can be a stabilizing achievement.          maximum level of overhead that can be
                         vehicles are owned by public companies.                                                         corner, values will bounce back. Under
                         These corporate sellers have held off                                                           the current economic conditions of large                                 Profit centering can make it easier to            sustained by a given level of gross profit.
                         selling in the hopes that the market might                                                      supply and weak consumer demand, I do                                    see which activities in a dealership are         Break-even can be achieved by moving
                         recover. As public companies, they are very                                                     not anticipate the usual spring wholesale                                producing profits and which are generating        gross profit or overhead or both until
                         much concerned about their stock prices                                                         market uptick. At best, I expect that the                                losses. Problem areas tend to stand out          balance is achieved.
                         and lender covenants. In other words, when                                                      deflationary spiral may begin to subside,                                 more clearly and, because each department
                         they recognize the loss in their corporate                                                      but this is not sufficient justification for                               is smaller than the dealership at large, those   When it comes to problem solving there is,
                         fleets, they could experience significant         If, on January 1, you owned a 2008              hanging on with the hopes of having your                                 problems can be easier to tackle.                of course, a great distance between analysis
                         stock devaluation and, even worse, a            Impala that was purchased 60 days earlier,      investment cost gradually return.                                                                                         and execution, and the greater difficulty is
                         potential loss of credit. However, these        after reconditioning you probably own                                                                                    Depending on the dealership, departments         almost always in the execution. Discussing
                         companies are required to write down their      it for around $13,500 to $14,000. I am          If we keep a close watch on the auction
                                                                                                                                                                                                  themselves can be segmented in smaller           problems in a few hundred words does not
                         assets by the Securities and Exchange           anticipating that this same vehicle may be      values, we will begin to see this
                         Commission to the lower of cost or fair         purchased right now for as little as $8,500     deflationary period leveling out. If we                                   operating units. A new vehicle department        do justice to the tasks required to ultimately
                         market value on a quarterly basis. As we        to $9,000. This will be true for virtually      could precisely predict this bottom, it                                  might be segmented into “new car” and            solve them. If analysis makes your efforts
                         are approaching the end of the quarter          every used unit on a similar scale. As          would be the moment to buy big. But, as                                  “new truck,” “sales team A” and “sales           more focused or improves the payback of
                         and year, this process will occur. Once the     a result, by the time the majority of the       none of us have a crystal ball, we need to                               team B” or even down to the level of each        your initiatives, then it has served a purpose.
                         write-downs are taken, what do you think        present supply has passed through the           be highly focused on velocity, not Capitol                               salesperson as an operating unit. A service
                         these companies will do next? There should      auction at unprecedented low values, many       Hill, without exception.                                                 department might segment into “quick-lube        It goes without saying that the accuracy
                         be little doubt that they will instruct the     dealers will find themselves in short supply                                                                              service,” “maintenance/light repair” and         of your analysis cannot be better than
                         auctions to immediately turn these vehicles     of cash and inventory that can not be           Dale Pollak is an author and the chairman                                “heavy repair.”                                  the accuracy of the data you put into it.
                         into much-needed cash.                          liquidated without creating insolvency.         and founder of vAuto. He can be                                                                                           If your dealership accounting is sloppy
                                                                                                                         contacted at 866.867.9620, or by e-mail                                  Segmenting a parts department into               or manipulated, your ability to identify
                         I believe that this phenomenon, rather than     In anticipation of this problem, I encourage    at dpollak@autosuccessonline.com.
                                                                                                                                                                                                  “warranty/internal,” “wholesale” and             problems and execute solutions is
                                                                                                                                                                                                  “counter retail operations” might reveal that    compromised. Insist that expenses and
                                                                                                                                                                                                  the department’s wholesale business fails        revenue go into the correct accounts and
                                                                                                                                                                                                  to cover its direct costs. Drilling deeper       they be posted into the months in which
                                                                                                                                                                                                  might reveal that certain types of wholesale     they really occurred. Take advantage of the
                                                                                                                                                                                                  customers are profitable but others are not.      start of a new year to get your accounting
                                                                                                                                                                                                  Drilling down an additional layer might          right — then keep it that way.
                                                                                                                                                                                                  demonstrate which specific customers are
                                                                                                                                                                                                  profitable to serve and which are not.

                                                                                                                                                                                                  Department managers should be intimately
                                                                                                                                                                                                  familiar with the break-even points of their
                                                                                                                                                                                                  own departments. Dealers and general             Steve Brazill is the chair of automotive
                                                                                                                                                                                                                                                   marketing for Northwood University,
                                                                                                                                                                                                  managers should understand the break-even        Texas Campus. He can be contacted at
                                                                                                                                                                                                  dynamics of every department. Break-even         866.861.1515, or by e-mail at
                                                                                                                                                                                                  analysis can also be applied to segments         sbrazill@autosuccessonline.com.




                                                                                                                                                                                                                                                                                                                               31
 30




  www.autosuccessonline.com                                                                                                                                                                                                                                      the #1 sales-improvement magazine for the automotive professional
RonAlexander
sales&trainingsolution




                                               RIGHT SIZE, RIGHT NOW
                                              As we all know,            Wal-Mart? No. They closely monitor each        — 65 percent of all pre-owned cars sell
                                              there is a significant      piece of inventory and measure its sales       within the first 27 days. It’s the rest that are
                         issue with our business. Sales, as well as      velocity. They know what each square foot      cancer. Salespeople form opinions about
                         profits, are down nationally. Some stores,       of space is selling and how fast. They know    aging stock, and we would be foolish not
                         though, are doing quite well. They are very     how long that can has been there and how       to consider their mindset. How much do
                         profitable. But how?                             long until it sells. They don’t carry soup     you really know about them? Are you
                                                                         that doesn’t sell. They measure every aspect   solely relying on logs and/or CRM data?
                         I recently had a conversation with a dealer     of the sale of that 87-cent can of soup.       That information really isn’t 100 percent
                         that brought this problem to light. That                                                       reliable, is it? How can you make sound
                         day, he had let go some key management          Now, some of us use tools to measure           choices without sound facts?
                         — people that had been with him for years.      trends and market values. But nearly none
                         To me, it was sad to see this previously        of us actually measure lot activity day by     Successful dealers are paying close
                         successful dealer nearly in tears because       day on existing inventory. Our current         attention to what sells, how fast, and what
                         of the state of his business. He said, “You     levels of vehicle management processes are     the salespeople are really doing on the lot.
                         know, I’ve been in business for 30 years,       lacking important data. Let’s go back to our   They aren’t stocking vehicles that don’t
                         but I just realized it had been one year        60-day-old car. If we could have measured      prove to be something that has velocity on
                         repeated 30 times.”                             its individual activity data early on, could   their lot. Because a car is “cool looking”
                                                                         we have made a choice then? No opens on        isn’t a good reason to carry it. That cash it
                         In this time, we need to operate smarter        day 19, no demos on day 27 — what would        took to invest in that car could be used to
                         than ever. This is when stuff like turn rates   you do? “But wait,” you say, “what about       invest in a quick-selling car or two. These
                         and service absorption separates the men        my ‘small profit’ and customer I gained?”       dealers have increased their turn rates from
                         from the boys, so to speak.                                                                    five to six times a year to 12 to 15. They
                                                                         Well, first, you lost money. Second, the car    are selling 100 with 80 in stock. It’s very
                         Let’s take a look at how we view our pre-       probably sold because of the spiff. Third,     possible to do.
                         owned inventory. Most dealers look at a         with a proper turn rate you, would have
                         car, trade or otherwise, and form an opinion    gained two customers, and really profited.      Yes, it was tough medicine to take at first,
                         on their gut. Yes, we use different books       Figure your daily holding costs per vehicle:   but they quickly recovered the initial loss.
                         and such to recommend an investment             the average daily holding cost is $43 a        They mitigated that loss however they
                         level. We deduct for things, sometimes          day per unit. You lost nearly $2,600 in just   could. There are many creative ways to
                         because a book tells us to, and sometimes       holding costs, plus a $500 spiff.              spread out the pain, and it’s got to be done.
                         because our gut does. But, in the end, that                                                    You might need to be a look at pay plans
                         is the extent our pre-planned exit strategy.    This is one of the areas where we are          and what motivates managers.
                                                                         missing it. Look back at your sales records.
                         Now, it’s a depreciating asset, and you own     How many times is this decision made per       I think we can all agree that aging inventory
                         it. What now? Well, it goes to service for      year? If you are like most dealers, there is   is a big issue. Working towards a plan to
                         a week for repairs and heads to be sold         a huge profit leak sitting right in front of    keep it from happening can’t hurt, especially
                         on the pre-owned lot. There it sits. Before     you. It comes from not knowing critical        in this volatile marketplace. Times like these
                         you know it the vehicle is 45 days old and      information when you need to know it. By       require new ways of thinking. Get your
                         showing up on your “hot sheet.” Then it’s       holding each vehicle accountable for its       people the tools they need to be successful.
                         60 days old, and you spiff it. You have to      share of the daily holding cost, it’s clear    Implement processes and procedures that
                         because if you take it to the auction, you      that a process change is in order. While       move you towards a quicker turn rate. Don’t
                         will lose money, right? Even if you sell        occupying a spot on the shelf, each can of     rely on logs and CRM data; find a way to
                         it for a small margin, you feel you have        soup holds a responsibility to the store’s     “inspect what you expect,” daily and “right
                         won. You made a small profit and gained          net profit. Having this data is priceless;      size” your inventory.
                         a customer, right? We have been thinking        it can help with all sorts of issues from
                         that way for years. Frankly, it’s not a solid   advertising to training.                       Ron Alexander is a sales director for
                         business choice.                                                                               intelliLot. He can be contacted at
                                                                         Besides, we all know a new broom sweeps        866.618.8455, or by e-mail at
                         Ever see dust on the top of a can of soup at    clean. That fresh unit gets all the play       ralexander@autosuccessonline.com.
 32




                                                                                                                                                                          NADA Booth #5247
  www.autosuccessonline.com
JohnDobrick
sales&trainingsolution



                                              WHY DO SALESPEOPLE
                                              TAKE SHORTCUTS?
                                                So, why do your          These “baby-steps” do not have to alter            • A review of equipment will lend
                                                salespeople take         your process — in fact, they should require          credibility to your price. In other
                         shortcuts? In the midst of this “softer         very little change to your current process;          words, it is the equipment level that
                         sales cycle,” it never ceases to amaze me       but when these “baby-steps” are performed            your prospect has chosen that has
                         how a salesperson will wait for an “up”         each and every time, familiarity is created,         ultimately established the price.
                         for the better part of a day and when they      and this familiarity breeds a confident             • A review of equipment provides
                         finally get in front of a prospect, they rush    salesperson. This new-found confidence                a strong reference point for the
                         through the process and take every possible     will have a huge positive impact on both             negotiation process.
                         shortcut, only to finish — without closing       the likelihood of making the sale and
                         the deal — so they can sit around, and wait     making a fair gross profit.                        Here is how that may look: Give the
                         for the next prospect so they can hurry                                                           prospect a complete “reminder” of the
                         through the entire process all over again.      Here’s an example, and the irony with             equipment, highlighting some of the
                                                                         this example is that it was taught to each        features and benefits as it pertains to their
                         Salespeople take shortcuts because they         of your salespeople when they first got            specific wants and needs. Next, transition
                         lack the confidence to correctly follow your     into this business. In fact, you may even         to the numbers by saying something like
                         process, or your process is lacking the steps   be of the opinion that this “baby-step”           this: “Mr. and Mrs. Customer, based on
                         your salespeople need to build confidence        is currently being executed by your               the equipment level you have chosen,
                         with the prospect. Either way, it’s an easy     salespeople on a regular basis — my               the manufacturers selling price is…,” or
                         fix. If your team is completely confident         experience tells me otherwise.                    “Mr. and Mrs. Customer, based on the
                         with each step of your “road to a sale,”                                                          equipment level you have chosen, the red
                         they will want to do your process. When
                                                                         This “baby-step” is utilized when the             tag sale price is….”
                         salespeople are completely confident, they
                                                                         anxiety levels of both the prospect and
                         perform at higher levels because prospects
                                                                         your salesperson are at their highest point:      Note: Who or what just determined the
                         recognize confidence, and in turn your
                                                                         the presentation of the numbers. Over             price of the automobile? How much more
                         prospect will want to do business with a
                         confident salesperson. Your process should       the years I have observed many “unique”           credible is that than the typical, “OK,
                         allow your team incremental opportunities       versions of the presentation of numbers           here’s where we are at — my manager said
                         to build confidence; without confidence,          and these presentations include fewer             you can buy the car for…” ?
                         your team will assuredly take the “path         and fewer occasions of the salesperson’s
                         of least resistance” and take shortcuts         review of equipment prior to any                  I am completely confident that this one
                         throughout the process.                         discussion of numbers.                            “baby-step” will affect the confidence of
                                                                                                                           your sales team. Imagine the results that
                         Look at it this way: What if you personally     And yet, if you were to ask your                  would be attainable with these “baby-
                         had the time to meet and greet every single     salespeople as to why this is an important        steps” or “tweaks” throughout your entire
                         prospect that walked into your dealership?      step, assuredly they will tell you “we            process; from sales, to sales management to
                         What if you handled each and every              review the equipment to build value.”             your F&I department. It is time to “fine-
                         prospect from the start to the finish? What      A salesperson understands that building           tune” your processes, and build a more
                         level of success would you be experiencing      value is one of the benefits of reviewing          confident team.
                         in this softer sales cycle? It is your          the equipment, and yet it is presently
                         complete understanding and knowledge of         being executed less than 100 percent              E-mail John at the address below to
                         the situation that conveys confidence and it     of the time. In fact, if you were to do a         find out more about John’s “20 Biggest
                         is this confidence that makes success much       deal audit of your last 25 deliveries, you        Secrets.”
                         more likely.                                    will almost certainly be astonished by
                                                                         the inconsistency of this step. There are
                         So the obvious question becomes: “What          several positive occurrences as we do a
                         is the fix? How do I build a more confident       review of the equipment:                          John Dobrick is the president of Focus
                         sales team?” The answer: Give your sales          • A review of equipment reminds the             Growth. He can be contacted at
                         team a couple of “baby-steps” that must be          prospect of all the value that is received,   866.490.5672, or by e-mail at
                         completed with each and every prospect.             in exchange for the dollars spent.            jdobrick@autosuccessonline.com.
 34




  www.autosuccessonline.com
JohnBrentlinger
leadershipsolution



                                           THE FOOLISHNESS
                                           IS OVER
                                            Did anyone ever think      doing and do the exact opposite. How             Get rid of the spirit of competition; fire
                                            that we would see the      much longer do you think you can keep            every manager and salesperson who is
                     CEO’s of the Big Three united in a cause          lowering prices?                                 not happy unless they are beating the rest
                     which ultimately will help them all? The                                                           of your employees and customers out of
                     spirit of cooperation is genuine, the need        Do you actually think that selling the most      something. Selfishness and greed is killing
                     is great and, ultimately, I think they’re on      vehicles for the least money has any merit in    the car business. Don’t be a casualty.
                     to something. Cooperation is better than          any industry? “I want to be No. 1?” Haven’t
                     competition — more about that in a moment.        we matured enough to stop wanting to be          3. Get a Life
                                                                       the biggest, the baddest and the best? For       There is more to life than the car business.
                     Forget for a moment that CEOs Waggoner,           Pete’s sake, get a strategy. Want particulars?   You don’t have to be open 24/7 to make a
                     Nardelli and Mulally represent three              Here are some, in order of importance:           living. OK, business is slow. The showroom
                     companies that built an enduring model              • Honesty — with yourself, with your           ain’t got traffic, customers aren’t loyal,
                     for every industry in America. Forget for             managers, with your salespeople, with        salespeople keep turning over. Something
                     a moment that these three represent the               your customers — in that order. That         is going on across the country, around the
                     greatest working class in the world who go            alone will increase sales.                   world. So, since things are slow, get a life.
                     about their work every day, sick or well, in        • Commitment — to your spouse, to              Let your employees have a life too. Are you
                     good times and bad, and who don’t have                your children, to your managers, to          daffy enough to think that making everyone
                     the time or inclination to complain about             your salespeople, to your customers          spend more time at work is going to solve
                     it. And now, having provided the jobs,                — in that order.                             this global problem?
                     the creativity, and the vision for an entire        • Teach salespeople to sell and pay
                     country of entrepreneurs for one hundred              them for doing it — Everyone else            If you’re going to keep working your best
                     years, these captains of industry were                thinks salespeople are a dime a dozen.       people to death, why not hire a divorce
                     disrespected, mocked and interrogated like            They are not. Train them so they can         lawyer in house? That way, your people who
                     they were a bunch of common criminals.                reach their full potential, then leave       never see their wives or kids anymore could
                                                                           them alone to sell all those vehicles        get the legal stuff done while they work.
                     And by whom? By a torn and dirty gunny                on your lot. Everyone else is taking so
                     sack full of politicians who have for the                                                          Things are slow? Fine, go to a five-day work
                                                                           much margin out that they can’t pay the      week like the rest of the sane world. Guess
                     last 30 years done all they can to eliminate          salespeople. Then they wonder why the
                     the working class, and the companies for                                                           what? No more scheduling problems. Are
                                                                           salespeople won’t sell.                      you so afraid of missing a sale that you’re
                     which the great American working class              • Make selling at a profit the
                     has given their entire lives. These fat cats in                                                    willing to sacrifice the families of your
                                                                           foundation of your business — Stop           people to “sell one more car?” Know what?
                     Washington have driven this country into a            the stupid nonsense about volume.
                     debt in the last 30 years, so many billions of                                                     If your dealership was fun enough, low
                                                                           You’ll never make it up in volume.           pressure enough, your people kind enough
                     times greater than Ford, Chrysler and GM              Volume is vanity; profit is sanity.
                     that it makes no sense to compare the two.                                                         to the customer, and your reputation as good
                                                                           Plainer yet, volume is stupid, selfish,       as you think it is, your customers would
                     In 2009, there is no room for any more                petty greed. Profit is honest, keeps you      remain loyal. They don’t come back because
                     foolishness. It is time to get seriously              in business and allows your people and       they don’t feel welcome at your dealership.
                     down to work. Here are three suggestions/             other local dealers to make an honest        It’s not the price, it’s not economy and it’s
                     resolutions for the New Year:                         living.                                      not the president — it is how you treat your
                                                                       2. Get a Brain                                   people and how they treat their customers.
                     1. Get a Strategy
                     What we have been doing is not                    Take a lesson from the big three. Go to          I know that this does not apply to everyone.
                     working. Sales are down at most                   the next new car dealer meeting and get to       But I also know that it applies to enough
                     dealerships, margins are squeezed and             know each other. Be honest with each other.      dealerships, so if the shoe fits, might want
                     market share is so-o-o yesterday. If you’re       Learn what your second grade teacher tried       to try it on. And I know that this may not
                     still going after market share this year          to pound into your thick skull, learn to get     be the most popular advice, but I have seen
                     — you know, stealing from other local             along. We sit here in America and bemoan         enough that it is time that someone says it.
                     dealers — you’re just plain nuts.                 all the wars and fighting in the world
                                                                       — and then we try to bankrupt anyone who         By the way: Training is not just for
                     How do you think your local market is             sells another brand. Get a brain — stop          salespeople. Why not try dealer training for
                     going to be a better place if you run another     competing, start cooperating. There is           the next 90 days? Then try manager training
                     dealer in town out of business? Are you so        enough for everyone.                             for the next 90. After you do that, then, work
                     greedy that you can’t stand to see another                                                         on the salespeople.
                     vehicle in town with another dealer’s name        How in the world do you expect the
                     on it? Has the green eyed monster got you         community to take you seriously, and
                     so bad that you lose sleep if another dealer      take the car business seriously, and take        John Brentlinger is a sales and
                     has a good month? Why? Get a strategy.            your people seriously if all you do is try to    management trainer, executive coach
                                                                       discount everything, beat the heck out of        and author. He can be contacted
                     Stop doing what everyone else is doing.           each other, and give a car away before you       at 866.859.6504, or by e-mail at
 36




                     Better yet, look at what everyone else is         let another dealer get a fair sale?              jbrentlinger@autosuccessonline.com.

 www.autosuccessonline.com
MattBaker
sales&trainingsolution


                                               CONSIDERING
                                               GOINGWhat That Looks Like
                                               Let’s Talk About
                                                                DARK?
                                               Who isn’t feeling the     people, who are our greatest asset. While        By keeping them busy, your sales staff will
                                               pain these days? This     your dealership may have made the decision       feel no need to resort to desperate selling.
                         past year has been tough; there’s no doubt.     to go “dark,” there is most likely someone       In result, the sales person (and the dealer)
                         As a result, many dealers have been faced       down the street who has continued to             can turn inventory at a faster rate and for a
                         with the need to make difficult decisions        promote in some fashion, creating more           higher gross per unit.                                           •Increase sales by 30%
                         based on their current situation. However,      hype, more energy and, in turn, more                                                                              •Increase ad response
                         when making these decisions, many are           sales. At this stage, a loss of energy and       Obviously, the more cars going out the
                                                                                                                                                                                           •Generate Excitement
                         having trouble thinking beyond the present      momentum on the sales floor translates to a       door at a higher gross means an increase in
                         and acknowledging the effects of their          loss of pay for your top guys. We know the       dealership profitability, but take a second to                     •Exclusive Territories
                         decisions down the road.                        best sales people don’t work for free, so they   consider the effects of this momentum on                              •User friendly
                                                                         will find someone else with something to          the dealership staff. The best sales people
                         Over the past few months, I have spoken         offer them that will satisfy their needs.        work for the best pay, and the best pay comes
                         with a number of dealers about what they                                                         from the employers whom are dedicated to
                         foresee for themselves and their dealerships    Without your greatest assets, “hope” does        creating an exciting selling environment. The                Dealer Cost
                         in the coming year. While some shared their     not become much of a strategy. With few          energy and enthusiasm generated from strong
                         optimism, many admitted their hesitations
                         and told me of their hope to wade out
                         the storm by going “black” with their
                         advertising dollars.
                                                                         customers streaming in to buy, inventory
                                                                         continuing to age, and with no good sales
                                                                         people to support the sales process, there is
                                                                         little to be optimistic about. Unfortunately
                                                                                                                          traffic and increased profitability creates a
                                                                                                                          confident and energized sales staff that is
                                                                                                                          driven by performance. In addition, your
                                                                                                                                                                                       $
                                                                                                                                                                                        159
                                                                                                                          dealership will begin to attract the attention
                                                                         for many, this loss of hope signifies a closely   of other top sales people and managers
                         In theory, severely cutting back on             approaching dead end. Whether the dead
                         advertising expenses seems sensible when                                                         around your region whom may be stuck in
                                                                         end signifies the close of the business or a      a less-enthusiastic environment. This gives
                         times are tough. This decision, however,        complex restructuring, neither option can
                         often harbors unforeseen consequences. A                                                         the dealer the pick of the litter when it comes
                                                                         really be classified as an optimal outcome.       to creating a strong sales force and building
                         drastic cut in advertising means a drastic
                         cut in traffic. With nothing established to      However, the road doesn’t have to end like       upon his or her greatest asset. In the end, an
                         drive new or repeat business, we enter into     this. For some, this may be hard to believe,     increasingly profitable bottom line combined
                         a downward spiral of dismal returns, lack       but not every dealer has accepted “hope” as      with a strong and productive sales force will
                         of sales and decreased market share. While      a strategy. So what does that mean for them?     create security amongst the dealership and
                         declines such as these may be assumed,
                         don’t be fooled. The buck doesn’t stop here.
                         Actually, these are just a few of the warning
                                                                         It means an opportunity to seize available
                                                                         market share while their competitors sit
                                                                         patiently on the sidelines.
                                                                                                                          keep everyone happy across the board.

                                                                                                                          While there may be no good answer to
                                                                                                                                                                            3 Day Las Vegas Getaway
                                                                                                                          what the future has in store, just remember
                         signs preparing us for the painful path
                         ahead.
                         While zero advertising doesn’t necessarily
                                                                         With a drop in advertising by competitive
                                                                         dealers who have chosen to go “dark,” those
                                                                         dealers who have stayed loyal to the power
                                                                                                                          that you are the writer of your own legacy.
                                                                                                                          Consider the underlying outcomes of
                                                                                                                          drastic cuts. While they may solve short-
                                                                                                                                                                              for two (including air)
                         mean zero customers, it can mean an             of advertising are automatically gaining         term goals, there is a good chance that
                         increased pressure to sell what you can to      a stronger share of voice. Think of it like      these decisions are just creating more
                         whomever you can. This pressure opens           this: If 100 people are in a room and each is    complex problems down the road. Consider
                         the door to the dangers of desperate selling    talking, it is hard to decipher one message      all options and their effects before deciding
                         and will result in lowered grosses across the   over all of the others. Yet when there are 100   that going “black” is the right thing to do.
                         board. In addition, decreasing sales often      people in a room and only one of them is         After all, who wouldn’t want to make the
                         means an increase in aged inventory and         talking, you can hear that person’s message      right decision (and hopefully some profit)
                         huge losses at the auction. When combined,      loud and clear.                                  in the end?
                         these characteristics create a formula for a
                         steadily declining bottom line.                 As the dealers advertising voice gets
                                                                         stronger, so does their market share. This
                         It doesn’t stop there. As profitability          steady or increasing momentum helps to           Matt Baker is the vice president of sales
                         continues to drop, there is little to fuel      keep the sales staff focused on proven           for G&A Marketing. He can be contacted
                         energy and excitement on the sales floor.        sales techniques versus spending their time      at 866.618.8248, or by e-mail at                   CRUISE   CANCUN                 LAS VEGAS
                         Without this, we risk losing our top sales      concentrating on the economic downfalls.         mbaker@autosuccessonline.com.




                                                                                                                                                                                            Point of sales and marketing material
                                                                                                                                                                                                    FREE on your 1st order!
                                                                                                                                                                                            Call for your free information package:
 40




                                                                                                                                                                                                       1 877 993 6835
                                                                                                                                                                                                     www.travelamerica.com
  www.autosuccessonline.com
Dr. JohnC.Maxwell
sales&trainingsolution
                                                                                                                                                                                                                    Wildcat players dumped Gatorade on           Shocked and silent, the Kentucky fans were
                                                                                                                                                                                                                    their coach to celebrate the win. Kentucky   left to stare at their soggy coach as the LSU
                                                                                                                                                                                                                    students poured out of the stands and        Tiger players celebrated their stunning,



                                              FINDING JOY
                                                                                                                                                                                                                    waited to charge onto the field after the     last-second victory.
                                                                                                                                                                                                                    final whistle.
                                                                                                                                                                                                                                                                 In closing, happiness doesn’t always find
                                                                                                                                                                                                                    Then, the LSU quarterback lofted the         us, we have to pursue it.
                                                                                                                                                                                                                    football as far as he could throw it. The
                                              The pursuit of            improve and grow. However, we find joy         clients will often discover a predominant                                                     ball bounced off the fingertips of a mob
                                              happiness. It’s one of    by being comfortable in our own skin.         theme that has brought them fulfillment. By                                                                                                 John C. Maxwell is an internationally
                                                                                                                                                                                                                    of players, and landed in the waiting        recognized leadership expert, speaker
                         our unalienable rights spelled out in The      Happiness comes when we learn to take         re-aligning with what has brought meaning                                                     arms of an LSU receiver who raced to the     and author. To learn more about or
                         Declaration of Independence, but what          pride in our talents and to smile at our      in the past, Williams feels her clients put                                                   end zone! LSU had won the game on a          to contact him, please visit
                         does it mean to pursue happiness? When         quirks.                                       themselves on track toward the pursuit of                                                     desperation pass!                            www.johnmaxwell.com.
                         so many of us are unhappy and empty, how                                                     happiness.
                         can we find joy?                                We have an inner drive to do something —
                                                                        a restlessness to make something happen.      If we don’t nourish ourselves, joy will
                         We must learn to reconcile the ambition        At the same time, joy is discovered in the    elude us.                                        “We won’t fully
                         to do with a willingness to be.                peaceful quiet of a soul at rest. Alongside
                                                                        our restlessness for change, we have a need   We nourish ourselves whenever we                  experience joy
                         As agents change, leaders sense all is not
                         well in the world. We see problems and
                                                                        for relaxation and recreation.                enter into activities that build our energy
                                                                                                                      reserves. Consider this list of common              until we’ve
                         search for solutions. Yet, if we only focus
                         only on what is wrong, we miss the joy
                                                                        We won’t fully experience joy until we’ve
                                                                        answered life’s biggest question: Why am
                                                                                                                      nourishment sources:
                                                                                                                        • Music — What songs lift me?
                                                                                                                                                                        answered life’s
                         of the blessings in our lives — family,
                         friendship, health and freedom. We have
                                                                        I here?                                         • Thoughts — What thoughts speak to
                                                                                                                          me?
                                                                                                                                                                       biggest question:
                         to offset our discontent with the status quo
                         by finding contentment in the life we have
                                                                        Without a life purpose, we flounder
                                                                        around without direction or joy. Life coach
                                                                                                                        • Experiences — What experiences
                                                                                                                          rejuvenate me?
                                                                                                                                                                       Why am I here?”
                         been given.                                    SuEllen Williams encourages clients             • Friends — What people encourage me?
                                                                        to write out their life story in five-year       • Recreation — What recreation re-             strengthen me?
                         As leaders at our dealerships, we are lean     increments, noting life-altering events and       creates me?                                • Hopes — What dreams inspire me?
                         and hungry, looking for opportunities to       influential people. During the exercise,         • Soul — What spiritual exercises            • Home — What family members care
                                                                                                                                                                       for me?
                                                                                                                                                                     • Giftedness — What gifts activate me?
                                                                                                                                                                     • Memories — What memories make me
                                                                                                                                                                       smile?

                                                                                                                                                                    To find joy, we must clean up our
                                                                                                                                                                    vocabulary.

                                                                                                                                                                    We pursue happiness when we banish the
                                                                                                                                                                    “shoulda, coulda, wouldas” in life and
                                                                                                                                                                    decide that everything is fine the way
                                                                                                                                                                    it is. To reconstruct our vocabulary, it’s
                                                                                                                                                                    important to understand the difference
                                                                                                                                                                    between facts of life and problems. A fact
                                                                                                                                                                    of life is something we cannot change,
                                                                                                                                                                    but we can adjust our attitude about it.
                                                                                                                                                                    A problem is something we can change,
                                                                                                                                                                    and becomes possible when we take
                                                                                                                                                                    responsibility to fix it.

                                                                                                                                                                    To discover joy, it’s important to celebrate
                                                                                                                                                                    success.

                                                                                                                                                                    Timing is critical to celebration. Be sure to
                                                                                                                                                                    celebrate after the fact, and not before the
                                                                                                                                                                    job is done.

                                                                                                                                                                    The Kentucky Wildcat football team
                                                                                                                                                                    learned this lesson the hard way. In 2002,
                                                                                                                                                                    the Wildcats led the heavily favored
                                                                                                                                                                    Louisiana State Tigers 30-27 with two
                                                                                                                                                                    seconds left to play. The Tigers had the
                                                                                                                                                                    ball, but they were 75 yards away from




                                                                                                                                                                                                                                                                                                                 43
                                                                                                                                                                    the end zone — an impossible distance to
 42




                                                                                                                                                                    cover in one play.
  www.autosuccessonline.com                                                                                                                                                                                                      the #1 sales-improvement magazine for the automotive professional
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daily challenges.
Protex is committed to helping its customers overcome
such challenges by offering its expertise and unique,
customized programs and services that can benefit
every department within a dealership or repair facility.



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AutoSuccess Jan09

  • 1.
    AutoSuccess Best ofthe Best NADA 2009 – Details Page 4 January 2009
  • 4.
    January 2009 FOCUS ON THE ‘WILDLY IMPORTANT’ 8 StephenR.Covey address: 3834 Taylorsville Rd. SUCCESS BEGINS IN YOUR MIND 10 TomHopkins Building A, Ste. 1B Louisville Kentucky 40220 GAME CHANGER 1 Solution for Automotive Internet Marketing 12 SusanGivens phone / fax: 877.818.6620 / 502.588.3170 WHAT CONSTITUTES A GREAT CUSTOMER EXPERIENCE? 14 KarenDillon web: AutoSuccessOnline.com AutoSuccessPodcast.com HOPE IS NOT A STRATEGY Gaging Providers for Cost Effectiveness 16 MarcSmith team: Susan Givens CAN WE HANDLE THE TRUTH? 18 PaulSnider Publisher sgivens1@autosuccessonline.com PARTS CHOICES - NOT ULTIMATUMS 19 LloydSchiller Thomas Williams VP & Creative Director design@autosuccessonline.com WHAT’S THE DIFFERENCE BETWEEN DEALERS SUCCESS AND FAILURE TODAY? 20 MichealYork Dave Davis Editor and Creative Strategist INTERNET SALES 20 GROUP XIII 22 SeanV.Bradley ddavis@autosuccessonline.com Brian Ankney 26 LEADING THE WAY TO PROFITABILITY - Sales-Improvement Strategist SeanStapleton Loyalty and Membership Programs super6@autosuccessonline.com John Warner STOP WHINING AND START WINNING The Attitude Development Plan 28 PaulCummings Sales-Improvement Strategist jwarner@autosuccessonline.com YOU CAN’T GO BACK AND YOU CAN’T STAND STILL 30 DalePollak general information: info@autosuccessonline.com SMALLER PIECES, BIGGER PROFITS 31 SteveBrazill eNewsletter: enews@autosuccessonline.com RIGHT SIZE, RIGHT NOW 32 RonAlexander AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or 34 info@autosuccessonline.com. Subscription rate is $69 per year. WHY DO SALESPEOPLE TAKE SHORTCUTS? JohnDobrick 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 36 contributing writers latitude in expressing advice and solutions; views THE FOOLISHNESS IS OVER JohnBrentlinger expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect 40 of the content of any other magazine to which this magazine may be linked CONSIDERING GOING DARK? MattBaker from time to time. Always confer with legal counsel before implementing Let’s Talk About What That Looks Like changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. 42 Reproduction in whole or part is prohibited without express written consent FINDING JOY Dr. JohnC.Maxwell 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, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220. 12 40 22 helping to support...
  • 5.
    StephenR.Covey leadershipsolution FOCUS ON THE ‘WILDLY IMPORTANT’ Leadership starts with have only a 33 percent chance of getting stakeholders? Your answers constitute defining priorities, but excellent results. wildly important goals. Customers, doesn’t stop there. Previously, I’ve talked employees, suppliers and investors all about the gap between setting a goal and How vital it is, then, to focus diligently have a stake in these goals. Therefore, achieving it. To close the execution gap, a and intensely on only a few crucial goals. everyone should be able to describe how dealership must practice four disciplines: While many of our goals at the dealership the key goals: • Focus on the wildly important goal are important, only a few qualify as “wildly • increase customer loyalty • Create a compelling scoreboard important.” A wildly important goal carries • ignite the passion and energy of your • Translate lofty goals into action serious consequences. Failure to achieve people • Hold everyone accountable all of the this goal renders other achievements • favorably impact suppliers, business time relatively inconsequential. partners and investors In this column, I will explain the first Consider the situation of the air traffic For a business, a goal cannot be wildly discipline. controller. At any moment, hundreds of important unless it is crucial to the airplanes are in the air, and all of them economics of the firm. Everyone in the There’s a key principle that many fail to are important. But the controller cannot organization should be able to clearly understand, hampering their ability to focus on all of them at once. Her job is define how the goal improves: perform. According to science writer Nigel to land them one at a time, and to do so • revenue growth Calder (The Mind of Man), one of the most flawlessly. Every organization is in a • cost reduction self-evident characteristics of the conscious similar position. Few can afford the luxury • cash flow mind is that “the mind attends to one thing of divided attention; some goals simply • profitability at a time.” A person wearing spectacles must be landed. with one green and one red lens will see Wildly important goals bring the greatest either green or red, but never some grayish How do we know which goals are wildly payback. Of all your potential goals, which combination of the two. important? The first step in achieving the few would bring you the most significant crucial goal is to clearly define it. Which economic return? Suppose you have an 80 percent chance of goals bring the most leverage in terms achieving a particular goal with excellence. of strategic, stakeholder and economic Putting the goals through the strategic, Add a second goal to that first goal, and priorities? All potential goals should pass stakeholder and economic screens positions your chances of achieving both drop to through these three screens. a clear “why” behind the “what” of the 64 percent. Keep adding goals, and the goal. probability of achieving them plunges Organizational strategy is crippled unless steeply. Juggle five goals at once, and you it takes the form of a few vital goals that The most vital work of the leader and of the everyone understands. Everyone in your fully engaged team is to define the wildly “...to define those goals so dealership should be able to define how important goals — to define those goals so the goal: clearly and to make the rationale so plain • directly supports the organization’s that no one misses their significance. It is mission to distinguish the wildly important from the • leverages core competencies merely important and to focus intensely on • increases market strength it. You can’t afford to waste precious time • increases competitive advantage and effort on anything less. Additionally, a goal cannot be wildly Originally ran in CLO Magazine important unless it is the most Stephen R. Covey, Ph.D., is co-founder consequential thing you can do to advance of FranklinCovey, and is the author of your strategy. the best-selling The 7 Habits of Highly and to make the rationale Effective People. He can be contacted at so plain that no one What are the most important things you 866.892.6363, or by e-mail at misses their significance.” should do to fulfill the needs of your scovey@autosuccessonline.com. 8 www.autosuccessonline.com
  • 6.
    TomHopkins sales&trainingsolution SUCCESS BEGINS IN YOUR MIND A good attitude is one I never see failure as failure, but only success. Success demands its percentage of of the most important as the negative feedback I need to failure. traits a sales professional can have. Most change course in my direction. Outside a people who fail in business fail because restaurant with a lively bar, I once saw a Here is a philosophy that I teach my they don’t know how to keep their attitudes gentleman who’d had too much to drink try students to live by: I am not judged by the positive on a daily basis. They start their to unlock his car with the wrong key. No number of times I fail, but by the number careers learning and practicing the basics, matter how many times he tried, the wrong of times I succeed, and the number of times applying these ideas and end up making key still didn’t work. After I’d talked him I succeed is in direct proportion to the lots of money. Then, they go into a slump. into taking a taxi home, it occurred to me number of times I can fail and keep trying. They will stay in their slump until they that sometimes we all keep trying to make go back to the fundamentals, until they the wrong key unlock the door — keep Work with this creed and the five attitudes return to doing what they get paid for using techniques that don’t work in our toward rejection. What counts isn’t how — accepting failure and rejection without selling endeavors, keep applying the wrong many transactions fall out, how many letting it stop them. solution to the problem long after we’ve doors slam, how many things don’t work tried it and failed. out or how many people go back on their The key to success is in how you handle word. What counts is how many times you failure. Handling failure does not come I never see failure as failure, but only pick yourself up, shrug and keep on trying naturally to most people. It is an acquired as the opportunity to develop my sense to make things come together. There are skill. Some of your emotions tell you to of humor. Have you ever had a traumatic challenges, obstacles and troubles in every sulk and avoid any situations in the future experience involving a sales presentation? kind of business, but they are all temporary that are likely to put you in line to feel the Three weeks later, you finally tell someone if you take control of your thoughts and pain of rejection again. Other emotions tell about it and suddenly that same event is develop the right attitude. I believe that you to get more out of life for yourself and hilarious. The longer you wait to laugh, the winners are winners because they’ve your loved ones. Concentrate on what you more that failure will hold you back. Make learned to fuel their success drives by have to gain, and learn how to change your a determined effort to laugh sooner, and overcoming failure. attitude toward rejection. learn the trick of telling a good story on yourself. World-renowned master sales trainer Tom I am going to present five sayings that have Hopkins is the chairman of Tom Hopkins helped me move forward in all areas of my I never see failure as failure, but only as International. He can be contacted at life. Memorize them and recall them when an opportunity to practice my techniques 866.347.6148, or by e-mail at thopkins@autosuccessonline.com. you’re rejected or have failed to achieve and perfect my performance. Every time what you wanted. you present your service to others and they don’t buy, at least they gave you a chance I never see failure as failure, but only to practice. Many people don’t realize the “The key to success is in as a learning experience. Every sale importance of this. Learn to appreciate the how you handle failure. that doesn’t go through is a learning opportunity to become better. Handling failure does experience; every challenge you have is a learning experience. Learn from your I never see failure as failure, but only as not come naturally failures. Thomas Edison, who conducted the game I must play to win. Selling is a to most people. It more than 10,000 experiments on filaments game. Life is a game. Both have their rules is an acquired before he produced a practical light bulb, — luck plays a small part, but the winners skill.” was once asked, “How did you keep going play ball. Over the years, I’ve discovered after you failed more than 10,000 times?” that a single rule dominates every situation: Edison replied, “I did not fail 10,000 times; Those who risk failure by working with I learned 10,000 ways that didn’t work.” more people earn more money; those Like Edison, try to look at failure and who risk less failure earn less. If you risk rejection in a different light — as a learning failure, sometimes you will fail. But every experience. time you fail, you’re that much closer to 10 www.autosuccessonline.com
  • 7.
    Dealer.com Platform “Parts” featuresolution keep the visitor longer and, ultimately, get them to act. To do this, dealers need intuitive LVLC™ V2.0 ePricer™ sites, available in English and Spanish, that The platform includes a revolutionary Tool that prompts customers to submit give visitors the information they need in the decision-making tool known as the Live their contact information and receive an manner in which they want it. This includes Visitor Lead Calculator™ (LVLC), an easy-to- immediate price quote via e-mail. one-click inventory pages, full vehicle detail use solution that enables dealers to estimate pages, vehicle reviews and compelling leads and sales before they invest in the Video Integration site. Based on a decade of data collected Includes Vehicle Showroom™ featuring inventory videos. For the dealer, more from more than 8,000 dealer Web sites, the CarFlix Virtual Test Drives™, keeping visitors than 35 lead-generating forms allow for an LVLC can predict the approximate number longer and making it easier to convert immediate connection to visitors, which is of visitors a site will attract. Version 2.0 of the them into buyers. Also includes a Video the Web site’s reason for existence. product enables dealers to see how much Streaming Toolkit and a Video Gallery. The “Changing the Game” with a comprehensive, feature-rich Today’s customers are expecting video. business they can expect from their paid most recent video addition to the platform search efforts, not just from their organic is CarFlix™ with Human Voice, a process online sales and marketing platform, driving more According to The Pew Internet and searches. Plus, based on the dealership’s that automatically and instantly creates high sales and more productivity. American Life Project, almost half of all average closing rates, the LVLC can even quality, full-motion videos with real human Web users watched online videos last year. estimate sales revenue. voices from pictures and data in a dealer’s multiple vendors, is fully integrated and sales revenue for the dealership can even be Clearly, it’s no longer enough for dealers to inventory system. post still or stock images of their inventory, LeadMachine™ comprehensive. In other words, the dealer estimated. For dealers, the game changer in or even 360-degree views. They must now Complete lead tracking system that enables Sales Analytics™ won’t have to learn how to make the parts a tight economy is being able to accurately dealers to create an automated process for A full set of sales, Web site and search play together — they were created to work gauge their ROI. also add videos of their inventory. Generic video that doesn’t promote each vehicle’s assigning, following up and managing leads ranking performance reports that can be together from the start. to individual sales reps, including tools such downloaded or accessed via FTP using a SusanGivens Marketing: Control Your SEM Results specific benefits just won’t do. as Integrated Call Tracking and PowerMail™ single login. Assigned account managers Out of the box, information across the The effectiveness of your Web site is (personalized, branded e-mail campaigns). review the reports with each client, helping platform can be shared and acted on, directly impacted by how it stands out in a Your dealership can stand out from your competition using a patent-pending process to interpret and improve site performance. A dealership is an eco-system. Every effort enabling dealers to drive more traffic, field of sites competing for the consumer’s Total Control Dominator™ is interconnected or interdependent and capture better leads, and make faster — and attention. The goal is that, when a customer that can automatically create unique, A simple-to-use search engine solution Mobile Marketing must perform in harmony for the dealership more accurate — decisions. The Internet types a search into Google or another search realistic videos of every vehicle in a your that enables dealers to build completely Allows on-the-go shoppers to browse a to survive and prosper. If one area is department’s efficiency will be greatly engine, your site stands tall at the top of the inventory, using a human voice. Once customizable paid search campaigns in dealer’s new and used online inventory via a weaker than the rest, or doesn’t contribute increased, benefiting “the body” as a whole. results. Dealers hire SEM (Search Engine vehicle data is loaded into an inventory just seconds, allowing them to create ads microsite optimized for smart phones, such as expected, the other elements in the Marketing) vendors to achieve this goal. It’s system, it produces a professional video around specific keywords or go head-to- as the iPhone. dealership’s system are all at risk. Your Example: If a vehicle is sold and the way it’s been done for the past decade, within minutes. Human voices can be head with their competitors. profit – your very survival – depends on all removed from inventory, the platform but is it the best way now? pre-recorded; then words and phrases are the parts operating in unison. can automatically disable any online seamlessly blended to create video voice- Managed SEO™ ad specifically referring to that vehicle. Today, dealers can take advantage of a overs. A vehicle model’s key features and Allows the Dealer.com team to continually To put it another way, if your lungs, brain, And, as a result, a dealer’s Internet ads radically different approach from most associated talking points are pre-loaded, evaluate and upgrade keywords to ensure kidneys and liver are all functioning are never dated and always reflect current traditional SEM vendors. Dealer.com’s a dealer’s site receives consistently high enabling a video for a truck to automatically perfectly, but your heart underperforms, organic search engine rankings, more form inventory; ad dollars are more wisely spent Total Control DOMINATOR™ (TCD) promote, say, the vehicle’s four-wheel drive submissions and higher conversion rates. your body is sick and can’t perform and customers find the exact vehicle they incorporates what the company refers to as capability and V-8 engine. effectively. If your heart stops, your seek. Just as you don’t have to consciously a “big brain” of SEM data, gathered over SmartSites™ body dies. Only a body with all its parts remind your heart to beat, all this happens the years from dealerships in every corner Through this technology, the system takes Award-winning, easy-to-navigate and functioning correctly and efficiently can automatically in the background. of the market. By applying sophisticated it one step further: the automated script can search-optimized Web sites that contain achieve to its potential. software rules and analytics to this data, it discuss not just features but the benefits multiple lead-generating forms, as well as Planning: automates the process of keyword selection, of those features as well. The result is a sales tools such as SpecialsBuilder™ and What does a dealership need to bring its Know Your ROI before You Spend high-resolution, convincing inventory CarFinder™. Also includes SmartSite™ configuring more than 8,000 top keywords various parts into harmony? A powerful This platform consists of several presentation with sound and special effects, Composer, a tool that enables dealers to and enabling dealers to create effective SEM online sales and marketing platform, components that take the dealer beyond such as panning, scrolling, zooming and update and edit their own Web content. campaigns in minutes. Dealers no longer coordinating all functions so that each a standard 360-degree view. Take, for pictures within pictures. This solution also have to wait for a vendor, or manually section can compliment and support the instance, the Web site, perhaps a dealer’s includes a library of context sensitive music, change keywords themselves. other, is key. This would change the game single most important sales lead generator. call-to-action dealer branding and built-in work with each dealer to constantly improve all, the platform is feature-rich, combining for dealers, and create a solution where the When a dealership hires a firm to construct The system also aids dealers in bidding for lead forms. It will make an impression. results. You’ll know where you stand. tried-and-true solutions, with leading-edge whole is greater than the sum of its parts. a Web site, there is no recognized, objective keywords to achieve the greatest ROI, and Managing: Executive Reporting technologies. These are not mere features but way to determine if the Web site’s ROI will helps link consumers to the page on your site One for All, and All for One best-in-class features wrapped in industry- And now, the good news: That platform has Made Easy pay off. The Web analytics and site traffic they are searching for to eliminate frustration. A common expression that’s often used proven best practices. been created. With all these parts working in unison, it’s are presented after the site has gone live. In addition, with this system, search in motivational seminars tells us that the The Platform By then, it’s too late and the dealer could be engine marketing experts carefully analyze critical to know what’s working — and acronym T.E.A.M. stands for “Together Forty years ago, the Hertz Corporation Dealer.com’s platform is the decade-long stuck in a vendor contract with a low ROI. keywords, customize Web content, enhance what’s not — especially since dealers can Everyone Achieves More.” The same can made marketing history with a successful result of consulting dealers and applying the site’s behind-the-scenes coding, build make changes on the fly. The platform’s now be said about the game-changing ad campaign based on the slogan “Let By utilizing a decade’s worth of research inbound and outbound links and submit the activities are reflected in a set of fully Dealer.com platform. Hertz put you in the driver’s seat.” Today, best practices to the solution dealerships and best practices collected from more optimized site to search engine directories, configurable executive reports. These dealers can get in the driver’s seat of their have been searching for. than 7,000 dealer sites across the country, including Google, Yahoo! and MSN. Again, reports include side-by-side metrics for a Dealers benefit from the platform by enjoying own online sales and marketing campaigns Just as the human body is more than the sum the Dealer.com platform allows dealers to it’s as automatic as your heartbeat. dealer’s advertising sources, such as cost a more efficient process, and an increase in through the use of a virtual platform. of it’s parts, the platform uses its modules estimate potential leads from sales from per sale, closing ratios and gross profit, as sales and service leads. The platform is more — a Web site, an ILM, vehicle images the Web site before making the investment. Selling: Engage Shoppers, well as data on the number of site visitors cost-effective, allowing dealers to replace And, don’t forget, selling cars is a team effort. and an inventory management system, to Dealers will know what they can expect Close Deals to average cost per contact to search engine multiple vendors with one vendor making name a few — to create harmony within from their paid search efforts, along with Getting the consumer to your site, however, rankings. Additionally, these reports come the marketing dollars go farther while at the For more information about Dealer.com the dealership. This solution, unlike other their organic searches. Also, based on the is only the beginning. With Dealer.com’s with account managers who read and same time driving dramatic productivity 13 contact us at 866.898.4617, or by e-mail at 12 platforms that are cobbled together from dealership’s average closing rates, potential platform, dealerships have a great tool to interpret the numbers for the dealer, and gains for the dealership. Perhaps best of dealer.com@autosuccessonline.com.
  • 8.
    KarenDillon sales&trainingsolution WHAT CONSTITUTES A GREAT CUSTOMER EXPERIENCE? The quality of your courteous language and empathetic tone. When a customer calls for service, it is dealership’s customer It can also be projected through proactive tempting to tell them to “come on in”; experience is ultimately determined by contact with the customer, including timely however, if we can’t accommodate them the way customers feel after their last follow up to inform them of the areas of and complete the service on their vehicle interaction. If the customer is unhappy, concern once their vehicle problem is properly and timely, we’ve not only your dealership’s customer experience is diagnosed, having their vehicle ready at the possibly lost a service customer, but also bad. If the customer doesn’t have a feeling promised time and explaining thoroughly damaged customer satisfaction. Train one way or the other, your dealership’s the repair and associated costs. your advisors to greet the customers by customer experience is mediocre. If the name — with a smile — so the customer customer feels good, your company’s A J.D. Power study makes some significant feels they are important and the dealership customer experience is satisfactory. points as to the importance of service personnel are pleased to serve them. I had In today’s economy, as we attempt to satisfaction: a friend of mine ask me recently, “Why encourage more customers to return to • Customers satisfied with their service do service advisors always seem to be our dealerships for service, none of these experience are more likely to return for in a bad mood?” If this is the impression experiences will accomplish our goal. We service. your advisors give your customers, some need the customer to feel “delighted” — • Customers satisfied with their attention needs to be directed to this area this will provide a substantial competitive service experience are more likely to immediately. advantage. repurchase the same make. • Customers satisfied with their 3. It’s important that the customer Your customer’s experience and their service experience are more likely to understands there are services that should feelings about their interactions with your recommend the make, leading to new be performed to prevent a safety or dealership are actually driven by several vehicle sales. mechanical problem. Always take the specific factors: • A gain in CSI score of 10 points is time and provide a full explanation of estimated to add $40 to $300 per what you are recommending, why you are Time customer annually. recommending it and the benefit to them Most people today suffer from “time of having the service performed. We must poverty.” Time is the one thing that As you look at addressing these factors that earn the customer’s trust by only selling most customers don’t have enough of. affect your customer satisfaction, what are needed services. Trust is a huge deciding So customers’ perceptions about your some proactive steps you can take? factor in a customer determining whether dealership customer experience are largely or not to return to a dealership for future influenced by time. This means you have to 1. Offer your customers the ease and vehicle services and vehicle purchases. reduce the time it takes for them to get in convenience of making a confirmed service touch with you, as well as the time it takes appointment from your Web site 24/7. 4. Remember how critical the last for them to communicate their need. This will allow your customer to make impression is. Be certain the last words their appointment at their convenience the customer hears when leaving your Competency — not yours — and eliminates the need dealership are “Thank You, Mr./Mrs….” Customers need to believe that your for them to call the dealership for a service Also, when you utilize an online dealership employees are good at what they appointment. According to GM, 35 percent appointment system, you can customize an do. They must perceive that your personnel of calls that come into the dealership for automatically generated pre-CSI e-mail to are well informed about the services service are either dropped or the customer the customer after the vehicle is picked up, offered by your service department. So, to is placed on hold and hangs up before thanking them for their business, letting project a perception of competency to your speaking with someone. Also, as more them know they may be receiving a survey customers, you must make sure that each and more customers begin making their regarding their satisfaction with this service member of your staff who interacts with appointments online, in-bound telephone and requesting they contact the service your customers is fully empowered with calls are reduced, lessening the number that manager with any issues or concerns. information that is complete, accurate and do not get answered properly. up to date. Constant attention to these areas can 2. Keep and maintain an appointment lead your dealership to increase your Personalization schedule, and schedule your customers in service business, service CSI and service Customers don’t want to be treated like properly, so they do not have to wait in efficiency, along with providing “a great a number. The differentiation of the line on the service drive to be greeted by customer experience.” experience your dealership delivers will an advisor. According to Auto University, be contingent on how well your customers the average wait time for a write up feel recognized when coming to your is 11 minutes. When we consider this dealership for service. number, keep in mind we can assume the first person in line was written up right Karen Dillon is the president of Care away; so consider the length of time TimeHighway.com. She can be contacted Customers like knowing that you care. This some of the customers have to wait in at 800.901.3170, or by e-mail at 14 feeling of care can be projected through order to achieve this average wait time. kdillon@autosuccessonline.com. www.autosuccessonline.com
  • 9.
    MarcSmith sales&trainingsolution HOPE IS NOT A STRATEGY: Gaging Providers for Cost Effectiveness Many of you may profits. A complete audit of the cost of Do you have vesting and volume have seen the recent the products should always be performed, requirements? article in Automotive News talking about paying special attention to whether the Having these requirements normally allows the credit crisis and how lenders are provider is truly bringing a cost-effective the provider to set unrealistic goals. If these becoming reluctant to finance dealership’s solution to the table — no matter what their goals are not met, the provider can keep inventories, forcing hundreds of dealers out size. I have found that the smaller, more some of the dealer’s profits. You should of business. Dealers have been subjected specialized provider usually has a better always receive 100 percent of your reserves to poor sales, high gasoline prices and cost-structure than the 800-pound gorilla. and 100 percent of your investment income destructive price wars. with no requirements. Likewise, I want to point out that there are The National Auto Dealers Association two types of relationships dealers can have Are there embedded incentives? predicted that as many as 700 dealerships with a provider which, in the end, affect Never use embedded incentives. They could close by the end of 2008. It is more product profitability: a participating and create nothing but misguided loyalty. important than ever to evaluate the full non-participating relationship. In a non- Not to mention it is the best way for the profit potential of every department in the participating relationship, the dealer simply provider to use your money to incentivize dealership. remits the cost of the products and retains your people. a small profit. When a dealer participates, Perhaps dealers should start by taking it gives them the ability to share in the Do you receive 100 percent of a closer look when dealing with their reserves and investment income. When a unused maintenance coupons? providers. After all, the area in the dealer is participating the agreements could In most cases the provider takes up to 50 dealership that can offer the largest be purposefully written in a way that might percent of the dealer’s unused maintenance deliverable margin on the current volume not deliver 100 percent of the profit to the coupons and does not even seed the of business is the Finance and Insurance dealer. The first red flag should be raised dealer’s accounts with maintenance portfolio. In fact, most dealerships can if your provider is reluctant and drags their reserves. Watch out for this. increase deliverable profits by as much feet when asked to deliver the agreements as $300,000 per year without selling any for your audit. Once granted access to them, In today’s business climate, taking a additional vehicles. What today’s dealer consider the following to determine just close look at all products and services is needs is a business strategy of efficiency. how well your provider agreements deliver: a prudent move and will make your entire Dealers need to be more cost-effective on operation more efficient and profitable. If, everything from advertising and personnel What is in your administrative fees? after putting your agreements to the test, to the cost of goods and services and the In many of the agreements I have read, you elect to change your provider, be sure providers they obtain them from. language regarding administrative fees the products your new provider offers are has not been clear. Generally, these backed by an “A” rated carrier. First, I recommend reviewing all expenses. administrative fees are made up of several When dealers take a drilled-down approach components, included no doubt to hide We can all hope the market comes back to their finance portfolio, additional costs and confuse dealers. strong, that the banks buy deeper and the they can often find nuances Remember, your administrative fee economy comes back fast, but hope is in their agreements that cost should be inclusive of all fees, including not a strategy. When you position your them enormous administrative, stop loss and dealership with top-rated products at dealer obligor. the lowest possible costs, it will set the foundation for additional margins and improved customer satisfaction as the market rebounds and grows. Good luck and good selling. Marc Smith is the president and CEO of Marc Smith International LLC. He can be contacted at 866.665.4479, or by e-mail at msmith@autosuccessonline.com. 16 www.autosuccessonline.com
  • 10.
    PaulSnider LloydSchiller marketingsolution sales&trainingsolution CAN WE HANDLE PARTS CHOICES - THE TRUTH? NOT ULTIMATUMS When speaking with showed an average credit score of 544. This applicants who rent versus those who own I want you to be open Sometimes the original equipment part finance executives, means we have to work smarter in order to was only 14 points. That tells us we can no all day Saturday. I prices out too expensively, and our customer there appears to be one common difference gain more approvals and deliver a higher longer assume that, because a person rents, want you to market to and retain your pre- ends up going elsewhere. If our competitor between those who are very successful and number of vehicles. they have worse credit than homeowners. owned customers. And now I want you to performs a quality repair, we didn’t lose the those who simply remain stuck at the same offer choices to your customers. I want you job, we’ve lost the customer… permanently. volume month after month. That difference • Privacy fears have caused customers to • Customers want us to give them all to stop the “take it or leave it” mentality. There are numerous parts you can offer is “understanding the truth” about non-prime fill out applications with bogus information. the information prior to coming into BEST, Better, good choices on: alternators, customers and why they often provide us Because of this, we must do a better job the dealership, which often results in If you buy a concert ticket, there are starters, batteries, water pumps, steering bogus information. interviewing customers. appointments never showing up. Train your different prices for different seats. If you gears, power steering pumps, steering entire staff how to handle outbound calls to go to McDonalds, they have different gears, ball joints, tie rod ends, brake pads, • Recently, a Florida-based marketing customers who have applied and make sure Long before instant bureau scores, electronic sizes of practically everything they offer brake rotors and drums, master cylinders, company contacted 1,500 customers in 20 they understand the importance of getting approvals and Internet leads, we were on the menu. These businesses, like most power brake boosters, A/C compressors, states who applied for credit online in the that person to show up. Don’t lose sight of forced to accept every lead at face value, businesses, are offering you options. Your condensers, evaporators, heater cores and past month, where 41 percent said they the fact this customer may have cash they contact the customer, arrange for them to choice — if you can’t afford front row seats, radiators. purchased a vehicle. Not all, however, were are not telling you about, or a co-signer who come in and, most of all, conduct a proper how about something further back, but more from the dealership that received the lead. can put strength into your deal. interview. Successful dealerships still affordable? Need something just to hold you Since the automakers make very few of That tells us that just because customers do operate that way; however, a good number over until dinner — how about small fries their own parts anymore, they use outside not buy today they are still in the market The bottom line is, in order to increase of managers still believe that whatever is on and a small soda? suppliers who manufacture, box and ship and, with proper follow up, could buy soon. sales, dealerships need to work every a lead sheet is real and only call customers these parts for the automakers, as well lead, go back to the basics, conduct proper back if their beacon score is high enough • Another survey with a national bank We do it in the vehicle sales department as other supply chains, including the interviews and accept the fact that customers for instant approval. Let’s take a look at the discovered that more than 40 percent of — new, certified pre-owned and pre- aftermarket. today have many choices and must be Facts/Truth surrounding non-prime credit customers apply numerous times at different owned. Every new vehicle comes with a worked properly. customers today. sites. That is why we continue to see variety of trim packages and prices. The The good news is the aftermarket vendors duplicate leads. Paul Snider is the CEO of Voisys. He can finance department has a myriad of choices make it easy for you to offer these choices. • Credit quality continues to decline; a be contacted at 866.492.9209, or by e- Top-quality providers, CARQUEST and recent survey of over 325,000 applications • The difference in credit scores between mail at psnider@autosuccessonline.com. when it comes to protection plans and other aftermarket items; yet many service NAPA have programs designed for new departments hold steadfast to the belief that vehicle dealers. Web-based parts catalogs the customers are coming to your service make it easy for your service advisors and department to pay top dollar to have their counter people to check pricing and local vehicle serviced, and that’s just the way it is. availability. Then, they can offer BEST, Better, good choices to your customers Now before you say, “But we offer wherever such options exist. competitive prices for our maintenance work, and, look, we have choices for tires,” You will use these same quality (not junk) consider why you are doing that. Is it aftermarket options to offer your customers because the customer would otherwise never choices. By telling your customers “we visit your service department more than already did your shopping for you, and here once? All of the factory-trained technicians are the choices available,” we have proven in the world will not convince a customer you can close more service and parts sales, to overpay more than once or to authorize a and retain more customers. repair they cannot afford. Taking care of your customers results in them coming back for more service, more When a customer is given a quote for a parts and future vehicle purchases — and repair and he says, “Let me get back to maybe even in recommending you to their you,” what do you think he’s doing? Do you friends. Not offering choices is basically think he’s calling his friends to tell them issuing ultimatums, and Americans don’t what a great dealership he took his vehicle respond well to ultimatums (“You need a to today? Each customer is unique; some new starter. Take it or leave it, bub.”). may only need their vehicle to last until they have an opportunity to sell it, others may Yes, I want you to offer parts choices. I want plan on keeping their vehicle forever. By you to be open all day Saturday. I want you giving your customer only one choice, we’ve to take care of the pre-owned customers. I given them a reason to shop us. want you to be successful. In order to provide the best opportunity Lloyd Schiller is the founder of Dealer to retain your customers, use your best Services Corporation, a division of NCM efforts to offer your customers two or three Associates. He can be contacted at 866.703.1479, or by e-mail at 19 choices — BEST, Better, good — when it 18 comes to some suggested parts and repairs. lschiller@autosuccessonline.com. www.autosuccessonline.com the #1 sales-improvement magazine for the automotive professional
  • 11.
    MichaelYork sales&trainingsolution WHAT’S THE DIFFERENCE BETWEEN DEALERS SUCCESS AND FAILURE TODAY? What’s the difference I’ve mentioned on several occasions a done or seen or achieved or provided to between the masses powerful lesson I’ve gotten from the book the marketplace. What’s best with you? and the true “car stars” in the marketplace? Change the Way You See Everything. I was By focusing on what’s best, it provides Between the individuals and organizations impressed by the overriding message in the a measure of encouragement and navigating these uncharted waters of a book. Here’s the message... positive reinforcement allowing you shifting economy and those crashing on the to make decisions that bring greater rocks of the same old ways of doing things? Most people focus on these two things: commitment. 1. What’s worst about what’s going on How lucky they are? Their location? How right now in their life, or work, or “the 2. What’s next for you, your business, about their focus? news” or whatever. What’s the worst your life, your family, your (fill in the thing you can imagine? Now focus on blank)… What should you and I be focused on that for a day or week or weeks and see today? What are most individuals focused what happens — is it any wonder that, When you focus on what’s next, it brings on, and does it really have anything to do if this is the focus of most individuals, an energy and inertia that propels you in with how things work out? we are a fearful and worrying society? that direction. It’s actually a law that states a body at rest tends to stay at rest, while If you’re a photographer, focus is key. Lose 2. What’s happened, happening or may a body in motion or a mind in motion to your focus as a leader and your team or happen (see #1). In essence, something remain in motion or be propelled in the company will soon follow. Take your eye that is beyond your control. direction of the new thing that is next. off the ball as a hitter or wide receiver, and you’re down and out — no touchdown, That’s the prevailing victim mentality This is the kind of “entrepreneurial you’ve struck out. And so it is in the that says you’re at the mercy of outside adrenalin” that most individuals who opened marketplace today, focus is critical. forces; more fear and worry that literally their own business or started an enterprise or paralizes individuals from taking action pursued an idea have felt. And it’s difficult and lulls them to explain to anyone who hasn’t. into a pattern Bo of “waiting on It’s an entrepreneurial experience that brings ot N 919 things to change positive energy and can bring an excitement h1 AD N or someone and a passion that transcends the day-to-day A ew 20 O else to change stuff that we all have to deal with. 09 rle things.” It’s just that when we focus on what’s next, nsa If you were all the other stuff seems to become less and YOU HAVE CUSTOMERS going to change less a paralyzing force and must step aside things, would for anyone who is on their way to what’s AND PROSPECTS. you wait for next and has made a commitment to go everyone else to there. change or just WE HELP YOU GET begin with you? If you need some positive reinforcement to help with your focus on what’s really A LOT MORE MILEAGE Here’s the power of the “Change important today, go back to basics with some of these books and timeless OUT OF THEM. the Way You See Everthing” messages: • Think and Grow Rich by Napoleon Hill message. The (re-read it) two things that • The Strangest Secret by Earl Let’s roll. the uncommon Nightingale minority (top performers, high Don’t neglect the power of positive achievers, “car messages and focusing on these two things stars,” etc.) are that bring you through the difficult times focused on: toward big success: What’s Best and What’s Next. Innovative e-newsletter solutions. 1. What’s best (just the Michael York is a professional speaker, 866-964-6397 imnLoyaltyDriver.com opposite of the writer and business consultant. He can majority) about be contacted by e-mail at what’s now or myork@autosuccessonline.com, or visit 20 what you’ve www.MichaelYork.com. www.autosuccessonline.com
  • 12.
    SeanV.Bradley sales&trainingsolution INTERNET SALES 20 GROUP XIII We recently just on their faces, and hear it in their voices. work weeks. You will crash and crash hard. concluded another Over the years I have seen numerous people successful Internet Sales 20 Group. Dealer One thing I made clear to them, as I want die. That’s right I said die. It is very sad; principals, GMs and OEMs traveled from to make clear to all of you reading this, is they put all of their time, energy and essence all over the United States to get educated as Stephen Covey would say, “we need to into the job. on Internet sales. Given this economy, with sharpen the saw,” meaning you can’t keep everything going on — the uncertainty, the going at a crazy pace at your dealership, Some people are workaholics, some are fear, etc. — I could see the stress and panic bell-to-bell, six-day, seven-day or 13-day forced to by Gestapo management and others simply feel that they have no other choice because they are commissioned based, and they need to keep working to support themselves and their families. The problem is that there is something called a point of diminishing return. Meaning, there is only so much you can squeeze out of something. Covey says that there are four main categories in which you need to sharpen your saw: Physical — exercising, walking, running, yoga, sports etc… Social/Emotional — spending time with spouse, children, family, going on a date, movies, talking with other people not work related, clubs, dancing, etc… Have fun! Mental — Reading books, magazines, Web sites and blogs; puzzles, Sudoku, having fun on Google, practicing word tracks, objections and rebuttals, conducting research about automotive Internet sales and business development for your dealership. Mental “sharpening of the saw” can be for fun as well as for mastering your craft. Spiritual — Going to church, volunteering, meditating, centering yourself. If you are not happy and at peace within yourself, you will not be able to achieve your maximum potential. If you are working in an Internet department, business development center or phone room, you cannot make call after call after call after call every day, six, seven or more days without a day off. You need to sharpen the saw. I know it sounds hard to accept if you need money now, but I promise you that you will be more productive and more on your game if you have recharged your batteries. We often lose sight of the obvious, such as “sharpen the saw.” Make a commitment to yourself and your dealership that you are going to start taking better care of yourself. Sean V. Bradley is the founder and CEO of Dealer Synergy, a nationally recognized training and consulting company in the automotive industry. He can be 22 contacted at 866.648.7400, or by e-mail at sbradley@autosuccessonline.com. www.autosuccessonline.com
  • 13.
    NADA BOOTH #1448 Gain an Unfair Advantage For Your Dealership Call Today 1-800-564-1875 Search to Sold www.tkcarsites.com ©2008 TK Carsites. All rights reserved.
  • 14.
    SeanStapleton marketingsolution LEADING THE WAY TO Get the most out of your advertising PROFITABILITY - Loyalty and Membership Programs dollars by using Aspen’s proven programs The strongest any services from that dealer in the past nine best reason to get those customers back to consumer brands months. As an industry, we have to improve your dealership for whatever the reason. Individual Dealer Promotions design their loyalty and rewards programs those statistics if we’re going to succeed. to create long-term, reliable relationships Of course, it’s true one oil change here and Statistics continue to show retailers offer SPECIAL OPPORTUNITY FOR CUSTOMERS AND SELECTED NEIGHBORS OF ABC CHEVROLET with their customers. Major companies like there is not going to add much profit to the loyalty and rewards program because Dear Sample, BestBuy or Southwest Airlines understand bottom line. But it’s not about just one visit. they work, but not all loyalty and rewards PROGRAM INCLUDES: Sample, We Have A New Chevrolet As a valued customer of ABC Chevrolet, we want to personally thank you for your business. Due to your continued loyalty, ABC Chevrolet is the most well recognized dealership in Northern Virginia. Now it is our turn to say THANK YOU! Because of your preferred customer status, you qualify for a dramatic new incentive program just announced by our owners. Program Headquarters For this event only7110 exclusively at ABC Chevrolet you will PRESORTED PO Box and West Chicago, IL 60186 • Discounts of up to $10,000 OFF PAID PERMIT #259 receive: FIRST CLASS U.S. POSTAGE Traffic Building Direct Mail programs are the same. Dealers must With Your Name On It! • 0% APR* Financing CAROL STREAM, IL that, in order for the relationship to work, It’s about creating a sense of loyalty that • Variety of Four Color Mailers • Up to $7,000 in Rebates** • Up to 120% Kelley Blue Book For Your Trade*** ***00000000000000000000***** Sample A. Sample In addition, ABC Chevrolet is desperately looking for customer trade-ins to fill their inventory. Our records indicate that you own one of the vehicles Any need to fill our special requests. 1234 we Street customers must first trust the brand. This keeps the customer in your dealership for understand these programs must be Any Town, USA 12345 • Exclusive Envelopes We have been authorized to buy back your current !1234445566! vehicle at up to 120% of it’s market value!** With ABC Chevrolet’s up to 120% buy back of your trade, huge factory cash back, and low integrated with a philosophy of outstanding interest rates, you may be able to also holds true in the automotive industry, all their automotive needs. The idea is to • Postage UPGRADE TO A NEW VEHICLE AND KEEP YOUR PAYMENT THE SAME. but for dealers, a customer relationship bring them back to your facility again and customer service, targeted messaging and • Targeted Mailing Lists All sales people and managers have been authorized to upgrade your vehicle! TRADE UP NOW! NO MORE REPAIR BILLS! Sub-Prime Promotions characterized by a deep sense of loyalty and again during the lifetime of that vehicle and rewards that resonate with the customer. • All Support Materials 0% APR FINANCING* OR UP $ 7,000 IN REBATES** trust has to be built the old-fashioned way the next vehicle and the next. This strategy TO • Dynamic IVR Phone System (optional) UPGRADE LOCATION: ABC Chevrolet EVENT DATES: Friday, June 27th Effective and successful programs offer 123 Any Street through Tuesday, - step by step, one transaction at a time. not only means good business for the dealer • Supply of Premiums Anytown, USA 12345 888-888-8888 July 1st, 2008 Service Mailers today, but even better business tomorrow. loyalty expertise, measurable goals for each *On approved credit. Select models only. See dealer for details. **Rebates subject to change based on manufacturer’s programs. See dealer for details. ***Based on fair Kelley Blue Book trade-in value. Deductions will be made for excessive mileage, wear and/or damage. Now more than ever before, dealerships location and ongoing support. Your existing will need to realize the true value of their We all know the old rule of thumb that a customer information must be consistently mined, cleaned, filtered and validated Hispanic Promotions most valuable asset — their customers. As happy customer will tell five people, while we see the average automotive ownership an unhappy customer will tell 20. Rewards to ensure the program being created is SureLeads ® POWERED BY ASPEN MARKETING SERVICES lifecycle increase, it creates both new programs turn customers into advocates for based on current information about your challenges and opportunities that justify the your dealership and increase the number of customers. This will determine appropriate The Number One Internet Lead Generation Program Saturation Mailers need to reevaluate the true value of a loyal times they pass along the good news. It’s offers to make, when to make them, and Get pre-screened credit scored internet leads by working directly relationship. Fewer customers are buying also the most powerful form of marketing most importantly, how to make them. with the number one internet lead generator. Increase your new vehicles; they are keeping their vehicles on the planet. Research has shown that these profitability by only reaching the best prospects for your marketing Digital Four Color longer and will need services and products “customer advocates” spend more money in Offers that are delivered via mass marketing goal. Achieve higher response rates with high level pre-screened that make no sense for that particular lead lists. Custom Mailers to maintain and protect their investment. the service department, submit higher CSI Dealerships have never needed to leverage ratings and refer many more customers. In customer are worthless and damaging to • Confirmation email sent instantly • Introduces your dealership this opportunity greater than in this current addition, loyal customers cost less to market your future opportunities with that customer. You have to deliver a message that is from Aspen Marketing to the E-mail Marketing market. Dealers need to get to know their to and are more profitable, as they visit your customers, identify their needs and provide dealership more frequently. Dealers with specific for each individual customer in a consumer • SMS and email alerts sent to products and services to fulfill those needs. well-designed rewards programs also see consistent and customer-preferred method. • Confirms buy-in of consumer you or your sales team a significant increase in returns and more One of the keys to building a successful Internet Leads In order to survive the current economic profit from each individual customer. Many loyalty program that creates lifelong • Full application instantly sent to and industry challenges, many dealers of our dealers have experienced returns on customers is to NEVER put an irrelevant • Explains the process your CRM account for follow up have taken a renewed interest in building a investment of literally 1,000 percent, after message in front of anyone. Sales Contests & Sweepstakes more-efficient operation, one that creates a just three months. It’s that powerful of a I don’t have to tell you that customer Start Selling More Cars Via The Internet! return on investment from every aspect of marketing mechanism. defection in our industry is the highest of the business. To do that, dealers must first focus on the customer’s needs, rather than You can do the numbers for yourself. How nearly any industry today. Stop relying on Special Finance Promotions Data Analytics their own. Dealerships spending their time much would a customer spend on repairs, broad messaging and aggressive discounts to bring your customers back. Building a Aspen Marketing combines the power of direct mail, cutting creating frequent interactions with their maintenance, F&I products, parts and loyalty and rewards platform that is relevant, edge voice response technology and the power of internet to customers will not only survive, but can accessories during an average four-year Premium Fulfillment actually thrive and grow in 2009. ownership of a car? What if you could gain timely and respectful will build a customer deliver to you the best automotive leads in the auto industry! 100 percent of that “spend” for just half base full of trusting, loyal advocates for you. Loyalty and reward programs can help of your current customers? A loyalty and PROGRAM INCLUDES: create a foundation for developing rewards program can help make that happen. Sean Stapleton is the executive vice • Full Color Invite • Interactive Phone System In/Out Bound Calling president of business development at • Exclusive Envelope • Web Based Lead relationships with customers, resulting And don’t forget, research also tells us 86 Visible Customer. He can be contacted in repeat business. Most current research percent of customers purchase their new at 866.406.6337, or by e-mail at • Postage Management System shows that nearly two-thirds of a vehicle from the dealership that services sstapleton@autosuccessonline.com. • Targeted Mailing List • Supply of Premiums dealership’s customers have not purchased their current vehicle. And that’s perhaps the • All Support Materials Call Aspen Marketing Headquarters Today At: 1-800-736-0602 www.aspenautomail.com “America’s Leader In 26 Atlanta • Chicago • Dallas • Detroit • Los Angeles • Morristown • New York • Phoenix • Tampa • Toronto Automotive Direct Marketing.” Copyright © 2008 Aspen Marketing Services, Inc. All rights reserved. www.autosuccessonline.com
  • 15.
    PaulCummings sales&trainingsolution STOP WHINING AND START WINNING The Attitude Development Plan Newsflash! The you let those who possess no inspiration, You Must Value Yourself world is not perfect, no desire, no dreams, no goals rob you of Let me reveal a secret to you: It is and neither is a career in the automotive your own? There is no good, reasonable or impossible for others to like, love or industry. Everyone wishes their journey intelligent answer to these questions. The believe in you more than you do. I have were a simple and uncomplicated trip, but remedy is to follow the simple but powerful witnessed people mired in negativity and that is not the reality of the world we live in advice I offer below: self-pity because they are in a mode of or the industry we work in. personal destruction. Somewhere along “ Today, I will refuse to associate with the twists and turns of life they lost their The brutal truth is that sometimes life is anyone or anything that might infect and self-confidence and belief in themselves. difficult. What measures a human being is harm my mind with mediocrity or negativity Have you ever been around someone who the spirit and attitude they display during regardless of who or what it is.” can’t see any good in themselves? They their most trying and difficult moments. In – Paul Cummings always ask negative questions like “Why fact, it is in these moments we must rely does this always happen to me?” These heavily on our attitude, faith and belief if Feed Your Mind Positive Thoughts negative questions invite their “ghost” we wish to persevere. Whining, moaning, Have you ever eaten a bad meal? Did you (your little voice) to finish them off. You groaning and complaining when things enjoy the result of putting the spoiled food must bring this pattern of behavior to an are tough serves no purpose whatsoever. It into your system? Of course not. However, immediate halt. The fact is you didn’t come may give you some temporary pleasure as because your body has a wonderful self- to this earth with a spirit of fear or equipped you spew your negativity forth so others protection system that helped to purge with limiting beliefs. You came here can join you in your personal pity party. your system of the problem, you were equipped for greatness, armed with power However, until you stop the whining, I able to recover rapidly. I wish we had and destined for personal victory and high promise you it will remain difficult for you the same system for protection against achievement. Don’t you think it is time to start truly winning. The choice is yours. negative thoughts. The truth is the ingestion you reclaim and reestablish your “winning of negative thoughts is 100 times more beliefs” and personal power? I certainly “The strongest principle of growth lies in damaging than spoiled food. Why? The do. If you agree and you are ready to stop personal choice.” answer lies in the simple fact that human whining and start winning, then follow this – George Eliot beings tend to replay negative thoughts over simple advice: and over. In fact, this dangerous process is Eliminating Negative Relationships akin to continually self-inflicting career- “I will make a list of all my positive In my career I have noticed a trend that zaps ending wounds by choice. What about you? qualities and attributes. I will have this list the knowledge, attitude, skills and habits Do you protect your mind as a sacred part embossed on a card that I will carry with out of even the strongest human being. of your make-up? Do you intentionally me everyday. Anytime I have a moment What is this trend? If you continually feed your mind positive messages as a of doubt or negativity, I will immediately associate with negative people you are means of building emotional health and read the card as a means of reinforcing going to fall victim to their way of life. To a winning attitude? If the answer is “no,” my beliefs. I will operate with a winning associate with impossibility thinkers is to please follow this simple advice and reap attitude from today forward. surrender by choice. I don’t believe in the the benefits: – Paul Cummings “blame culture” we live in, so let me set you straight before you blame the people you “ I will drink from good books everyday associate with daily. It’s your fault. No one until I am intoxicated by the power of can force you to associate with people who positive thinking. I will not allow negative live their life in a negative manner. Why thoughts to course through my mind Paul Cummings is president and CEO of would you make the choice to associate uninterrupted. I will instead ingest positive Paul Cummings Enterprises. He can be with half-hearted traveling companions quotes to enhance my attitude.” contacted at 866.865.3171, or by e-mail on the way to your dreams? Why would – Paul Cummings at pcummings@autosuccessonline.com. 28 www.autosuccessonline.com
  • 16.
    DalePollak SteveBrazill sales&trainingsolution sales&trainingsolution YOU CAN’T GO BACK AND SMALLER PIECES, YOU CAN’T STAND STILL BIGGER PROFITS By the time you read what is occurring on Capitol Hill, represents dealers to reduce their inventories as Lifting small objects within a department, such as wholesale this article, it will be the greatest immediate threat to the retail quickly as possible. The ideal position is usually easier than activities within the parts department or 2009 but due to printing deadlines, I am automobile dealer. This is because every would have been to have had no used lifting large ones. If you are struggling to the quick-lube segment of the service writing this in mid-December. Without vehicle in stock after January 1 is prone to inventory on January 1 and, instead, a pile maintain profitability in current market department. the knowledge of what Congressional unprecedented devaluation. As you read this of cash to buy fresh units at bargain prices. conditions, consider managing your negotiators will decide, I nevertheless article, I believe that we will already be in To the extent that you are in a position to organization in progressively smaller pieces. Because break-even analysis is about the believe the events that will impact the the midst of the largest deflationary period buy vehicles in this deflationary market, dealer community in 2009 will be as in the history of used cars. you are very fortunate. However, for relationship between a business unit’s dependent on how well you manage your those vehicles currently owned, I would Common practice segments dealerships gross profit and its overhead, the results own used car lots as on any decisions made advocate immediate disposition of aged into departments which can be managed provide an opportunity for proportional on Capitol Hill. “This is because units through a means that I call “whole- as profit centers: new vehicle sales, used response. For example, performing a every vehicle in tailing.” This means utilizing traditional vehicle sales, service and parts. A simple simple break-even analysis of the parts Right now, there are an unprecedented stock after January retail channels to sell vehicles at wholesale truth is that if each profit center produces department will provide two actionable number of under-water vehicles awaiting 1 is prone to prices. Whatever losses are incurred with a profit every month — even if only one pieces of information. At one extreme, it sale at the auctions. These supplies have unprecedented this strategy will pale in comparison with dollar — the dealership will never operate reveals the minimum level of gross profit grown as a result of the unwillingness of devaluation.” the losses that will ensue should you wait. at a loss. In a store that is losing money, (and sales) necessary to cover a given level their owners to let them go to the highest And, I take limited comfort in the hope getting each department to its break-even of overhead — at the other it reveals the bidder because, for the most part, these that, because spring is right around the point can be a stabilizing achievement. maximum level of overhead that can be vehicles are owned by public companies. corner, values will bounce back. Under These corporate sellers have held off the current economic conditions of large Profit centering can make it easier to sustained by a given level of gross profit. selling in the hopes that the market might supply and weak consumer demand, I do see which activities in a dealership are Break-even can be achieved by moving recover. As public companies, they are very not anticipate the usual spring wholesale producing profits and which are generating gross profit or overhead or both until much concerned about their stock prices market uptick. At best, I expect that the losses. Problem areas tend to stand out balance is achieved. and lender covenants. In other words, when deflationary spiral may begin to subside, more clearly and, because each department they recognize the loss in their corporate but this is not sufficient justification for is smaller than the dealership at large, those When it comes to problem solving there is, fleets, they could experience significant If, on January 1, you owned a 2008 hanging on with the hopes of having your problems can be easier to tackle. of course, a great distance between analysis stock devaluation and, even worse, a Impala that was purchased 60 days earlier, investment cost gradually return. and execution, and the greater difficulty is potential loss of credit. However, these after reconditioning you probably own Depending on the dealership, departments almost always in the execution. Discussing companies are required to write down their it for around $13,500 to $14,000. I am If we keep a close watch on the auction themselves can be segmented in smaller problems in a few hundred words does not assets by the Securities and Exchange anticipating that this same vehicle may be values, we will begin to see this Commission to the lower of cost or fair purchased right now for as little as $8,500 deflationary period leveling out. If we operating units. A new vehicle department do justice to the tasks required to ultimately market value on a quarterly basis. As we to $9,000. This will be true for virtually could precisely predict this bottom, it might be segmented into “new car” and solve them. If analysis makes your efforts are approaching the end of the quarter every used unit on a similar scale. As would be the moment to buy big. But, as “new truck,” “sales team A” and “sales more focused or improves the payback of and year, this process will occur. Once the a result, by the time the majority of the none of us have a crystal ball, we need to team B” or even down to the level of each your initiatives, then it has served a purpose. write-downs are taken, what do you think present supply has passed through the be highly focused on velocity, not Capitol salesperson as an operating unit. A service these companies will do next? There should auction at unprecedented low values, many Hill, without exception. department might segment into “quick-lube It goes without saying that the accuracy be little doubt that they will instruct the dealers will find themselves in short supply service,” “maintenance/light repair” and of your analysis cannot be better than auctions to immediately turn these vehicles of cash and inventory that can not be Dale Pollak is an author and the chairman “heavy repair.” the accuracy of the data you put into it. into much-needed cash. liquidated without creating insolvency. and founder of vAuto. He can be If your dealership accounting is sloppy contacted at 866.867.9620, or by e-mail Segmenting a parts department into or manipulated, your ability to identify I believe that this phenomenon, rather than In anticipation of this problem, I encourage at dpollak@autosuccessonline.com. “warranty/internal,” “wholesale” and problems and execute solutions is “counter retail operations” might reveal that compromised. Insist that expenses and the department’s wholesale business fails revenue go into the correct accounts and to cover its direct costs. Drilling deeper they be posted into the months in which might reveal that certain types of wholesale they really occurred. Take advantage of the customers are profitable but others are not. start of a new year to get your accounting Drilling down an additional layer might right — then keep it that way. demonstrate which specific customers are profitable to serve and which are not. Department managers should be intimately familiar with the break-even points of their own departments. Dealers and general Steve Brazill is the chair of automotive marketing for Northwood University, managers should understand the break-even Texas Campus. He can be contacted at dynamics of every department. Break-even 866.861.1515, or by e-mail at analysis can also be applied to segments sbrazill@autosuccessonline.com. 31 30 www.autosuccessonline.com the #1 sales-improvement magazine for the automotive professional
  • 17.
    RonAlexander sales&trainingsolution RIGHT SIZE, RIGHT NOW As we all know, Wal-Mart? No. They closely monitor each — 65 percent of all pre-owned cars sell there is a significant piece of inventory and measure its sales within the first 27 days. It’s the rest that are issue with our business. Sales, as well as velocity. They know what each square foot cancer. Salespeople form opinions about profits, are down nationally. Some stores, of space is selling and how fast. They know aging stock, and we would be foolish not though, are doing quite well. They are very how long that can has been there and how to consider their mindset. How much do profitable. But how? long until it sells. They don’t carry soup you really know about them? Are you that doesn’t sell. They measure every aspect solely relying on logs and/or CRM data? I recently had a conversation with a dealer of the sale of that 87-cent can of soup. That information really isn’t 100 percent that brought this problem to light. That reliable, is it? How can you make sound day, he had let go some key management Now, some of us use tools to measure choices without sound facts? — people that had been with him for years. trends and market values. But nearly none To me, it was sad to see this previously of us actually measure lot activity day by Successful dealers are paying close successful dealer nearly in tears because day on existing inventory. Our current attention to what sells, how fast, and what of the state of his business. He said, “You levels of vehicle management processes are the salespeople are really doing on the lot. know, I’ve been in business for 30 years, lacking important data. Let’s go back to our They aren’t stocking vehicles that don’t but I just realized it had been one year 60-day-old car. If we could have measured prove to be something that has velocity on repeated 30 times.” its individual activity data early on, could their lot. Because a car is “cool looking” we have made a choice then? No opens on isn’t a good reason to carry it. That cash it In this time, we need to operate smarter day 19, no demos on day 27 — what would took to invest in that car could be used to than ever. This is when stuff like turn rates you do? “But wait,” you say, “what about invest in a quick-selling car or two. These and service absorption separates the men my ‘small profit’ and customer I gained?” dealers have increased their turn rates from from the boys, so to speak. five to six times a year to 12 to 15. They Well, first, you lost money. Second, the car are selling 100 with 80 in stock. It’s very Let’s take a look at how we view our pre- probably sold because of the spiff. Third, possible to do. owned inventory. Most dealers look at a with a proper turn rate you, would have car, trade or otherwise, and form an opinion gained two customers, and really profited. Yes, it was tough medicine to take at first, on their gut. Yes, we use different books Figure your daily holding costs per vehicle: but they quickly recovered the initial loss. and such to recommend an investment the average daily holding cost is $43 a They mitigated that loss however they level. We deduct for things, sometimes day per unit. You lost nearly $2,600 in just could. There are many creative ways to because a book tells us to, and sometimes holding costs, plus a $500 spiff. spread out the pain, and it’s got to be done. because our gut does. But, in the end, that You might need to be a look at pay plans is the extent our pre-planned exit strategy. This is one of the areas where we are and what motivates managers. missing it. Look back at your sales records. Now, it’s a depreciating asset, and you own How many times is this decision made per I think we can all agree that aging inventory it. What now? Well, it goes to service for year? If you are like most dealers, there is is a big issue. Working towards a plan to a week for repairs and heads to be sold a huge profit leak sitting right in front of keep it from happening can’t hurt, especially on the pre-owned lot. There it sits. Before you. It comes from not knowing critical in this volatile marketplace. Times like these you know it the vehicle is 45 days old and information when you need to know it. By require new ways of thinking. Get your showing up on your “hot sheet.” Then it’s holding each vehicle accountable for its people the tools they need to be successful. 60 days old, and you spiff it. You have to share of the daily holding cost, it’s clear Implement processes and procedures that because if you take it to the auction, you that a process change is in order. While move you towards a quicker turn rate. Don’t will lose money, right? Even if you sell occupying a spot on the shelf, each can of rely on logs and CRM data; find a way to it for a small margin, you feel you have soup holds a responsibility to the store’s “inspect what you expect,” daily and “right won. You made a small profit and gained net profit. Having this data is priceless; size” your inventory. a customer, right? We have been thinking it can help with all sorts of issues from that way for years. Frankly, it’s not a solid advertising to training. Ron Alexander is a sales director for business choice. intelliLot. He can be contacted at Besides, we all know a new broom sweeps 866.618.8455, or by e-mail at Ever see dust on the top of a can of soup at clean. That fresh unit gets all the play ralexander@autosuccessonline.com. 32 NADA Booth #5247 www.autosuccessonline.com
  • 18.
    JohnDobrick sales&trainingsolution WHY DO SALESPEOPLE TAKE SHORTCUTS? So, why do your These “baby-steps” do not have to alter • A review of equipment will lend salespeople take your process — in fact, they should require credibility to your price. In other shortcuts? In the midst of this “softer very little change to your current process; words, it is the equipment level that sales cycle,” it never ceases to amaze me but when these “baby-steps” are performed your prospect has chosen that has how a salesperson will wait for an “up” each and every time, familiarity is created, ultimately established the price. for the better part of a day and when they and this familiarity breeds a confident • A review of equipment provides finally get in front of a prospect, they rush salesperson. This new-found confidence a strong reference point for the through the process and take every possible will have a huge positive impact on both negotiation process. shortcut, only to finish — without closing the likelihood of making the sale and the deal — so they can sit around, and wait making a fair gross profit. Here is how that may look: Give the for the next prospect so they can hurry prospect a complete “reminder” of the through the entire process all over again. Here’s an example, and the irony with equipment, highlighting some of the this example is that it was taught to each features and benefits as it pertains to their Salespeople take shortcuts because they of your salespeople when they first got specific wants and needs. Next, transition lack the confidence to correctly follow your into this business. In fact, you may even to the numbers by saying something like process, or your process is lacking the steps be of the opinion that this “baby-step” this: “Mr. and Mrs. Customer, based on your salespeople need to build confidence is currently being executed by your the equipment level you have chosen, with the prospect. Either way, it’s an easy salespeople on a regular basis — my the manufacturers selling price is…,” or fix. If your team is completely confident experience tells me otherwise. “Mr. and Mrs. Customer, based on the with each step of your “road to a sale,” equipment level you have chosen, the red they will want to do your process. When This “baby-step” is utilized when the tag sale price is….” salespeople are completely confident, they anxiety levels of both the prospect and perform at higher levels because prospects your salesperson are at their highest point: Note: Who or what just determined the recognize confidence, and in turn your the presentation of the numbers. Over price of the automobile? How much more prospect will want to do business with a confident salesperson. Your process should the years I have observed many “unique” credible is that than the typical, “OK, allow your team incremental opportunities versions of the presentation of numbers here’s where we are at — my manager said to build confidence; without confidence, and these presentations include fewer you can buy the car for…” ? your team will assuredly take the “path and fewer occasions of the salesperson’s of least resistance” and take shortcuts review of equipment prior to any I am completely confident that this one throughout the process. discussion of numbers. “baby-step” will affect the confidence of your sales team. Imagine the results that Look at it this way: What if you personally And yet, if you were to ask your would be attainable with these “baby- had the time to meet and greet every single salespeople as to why this is an important steps” or “tweaks” throughout your entire prospect that walked into your dealership? step, assuredly they will tell you “we process; from sales, to sales management to What if you handled each and every review the equipment to build value.” your F&I department. It is time to “fine- prospect from the start to the finish? What A salesperson understands that building tune” your processes, and build a more level of success would you be experiencing value is one of the benefits of reviewing confident team. in this softer sales cycle? It is your the equipment, and yet it is presently complete understanding and knowledge of being executed less than 100 percent E-mail John at the address below to the situation that conveys confidence and it of the time. In fact, if you were to do a find out more about John’s “20 Biggest is this confidence that makes success much deal audit of your last 25 deliveries, you Secrets.” more likely. will almost certainly be astonished by the inconsistency of this step. There are So the obvious question becomes: “What several positive occurrences as we do a is the fix? How do I build a more confident review of the equipment: John Dobrick is the president of Focus sales team?” The answer: Give your sales • A review of equipment reminds the Growth. He can be contacted at team a couple of “baby-steps” that must be prospect of all the value that is received, 866.490.5672, or by e-mail at completed with each and every prospect. in exchange for the dollars spent. jdobrick@autosuccessonline.com. 34 www.autosuccessonline.com
  • 19.
    JohnBrentlinger leadershipsolution THE FOOLISHNESS IS OVER Did anyone ever think doing and do the exact opposite. How Get rid of the spirit of competition; fire that we would see the much longer do you think you can keep every manager and salesperson who is CEO’s of the Big Three united in a cause lowering prices? not happy unless they are beating the rest which ultimately will help them all? The of your employees and customers out of spirit of cooperation is genuine, the need Do you actually think that selling the most something. Selfishness and greed is killing is great and, ultimately, I think they’re on vehicles for the least money has any merit in the car business. Don’t be a casualty. to something. Cooperation is better than any industry? “I want to be No. 1?” Haven’t competition — more about that in a moment. we matured enough to stop wanting to be 3. Get a Life the biggest, the baddest and the best? For There is more to life than the car business. Forget for a moment that CEOs Waggoner, Pete’s sake, get a strategy. Want particulars? You don’t have to be open 24/7 to make a Nardelli and Mulally represent three Here are some, in order of importance: living. OK, business is slow. The showroom companies that built an enduring model • Honesty — with yourself, with your ain’t got traffic, customers aren’t loyal, for every industry in America. Forget for managers, with your salespeople, with salespeople keep turning over. Something a moment that these three represent the your customers — in that order. That is going on across the country, around the greatest working class in the world who go alone will increase sales. world. So, since things are slow, get a life. about their work every day, sick or well, in • Commitment — to your spouse, to Let your employees have a life too. Are you good times and bad, and who don’t have your children, to your managers, to daffy enough to think that making everyone the time or inclination to complain about your salespeople, to your customers spend more time at work is going to solve it. And now, having provided the jobs, — in that order. this global problem? the creativity, and the vision for an entire • Teach salespeople to sell and pay country of entrepreneurs for one hundred them for doing it — Everyone else If you’re going to keep working your best years, these captains of industry were thinks salespeople are a dime a dozen. people to death, why not hire a divorce disrespected, mocked and interrogated like They are not. Train them so they can lawyer in house? That way, your people who they were a bunch of common criminals. reach their full potential, then leave never see their wives or kids anymore could them alone to sell all those vehicles get the legal stuff done while they work. And by whom? By a torn and dirty gunny on your lot. Everyone else is taking so sack full of politicians who have for the Things are slow? Fine, go to a five-day work much margin out that they can’t pay the week like the rest of the sane world. Guess last 30 years done all they can to eliminate salespeople. Then they wonder why the the working class, and the companies for what? No more scheduling problems. Are salespeople won’t sell. you so afraid of missing a sale that you’re which the great American working class • Make selling at a profit the has given their entire lives. These fat cats in willing to sacrifice the families of your foundation of your business — Stop people to “sell one more car?” Know what? Washington have driven this country into a the stupid nonsense about volume. debt in the last 30 years, so many billions of If your dealership was fun enough, low You’ll never make it up in volume. pressure enough, your people kind enough times greater than Ford, Chrysler and GM Volume is vanity; profit is sanity. that it makes no sense to compare the two. to the customer, and your reputation as good Plainer yet, volume is stupid, selfish, as you think it is, your customers would In 2009, there is no room for any more petty greed. Profit is honest, keeps you remain loyal. They don’t come back because foolishness. It is time to get seriously in business and allows your people and they don’t feel welcome at your dealership. down to work. Here are three suggestions/ other local dealers to make an honest It’s not the price, it’s not economy and it’s resolutions for the New Year: living. not the president — it is how you treat your 2. Get a Brain people and how they treat their customers. 1. Get a Strategy What we have been doing is not Take a lesson from the big three. Go to I know that this does not apply to everyone. working. Sales are down at most the next new car dealer meeting and get to But I also know that it applies to enough dealerships, margins are squeezed and know each other. Be honest with each other. dealerships, so if the shoe fits, might want market share is so-o-o yesterday. If you’re Learn what your second grade teacher tried to try it on. And I know that this may not still going after market share this year to pound into your thick skull, learn to get be the most popular advice, but I have seen — you know, stealing from other local along. We sit here in America and bemoan enough that it is time that someone says it. dealers — you’re just plain nuts. all the wars and fighting in the world — and then we try to bankrupt anyone who By the way: Training is not just for How do you think your local market is sells another brand. Get a brain — stop salespeople. Why not try dealer training for going to be a better place if you run another competing, start cooperating. There is the next 90 days? Then try manager training dealer in town out of business? Are you so enough for everyone. for the next 90. After you do that, then, work greedy that you can’t stand to see another on the salespeople. vehicle in town with another dealer’s name How in the world do you expect the on it? Has the green eyed monster got you community to take you seriously, and so bad that you lose sleep if another dealer take the car business seriously, and take John Brentlinger is a sales and has a good month? Why? Get a strategy. your people seriously if all you do is try to management trainer, executive coach discount everything, beat the heck out of and author. He can be contacted Stop doing what everyone else is doing. each other, and give a car away before you at 866.859.6504, or by e-mail at 36 Better yet, look at what everyone else is let another dealer get a fair sale? jbrentlinger@autosuccessonline.com. www.autosuccessonline.com
  • 21.
    MattBaker sales&trainingsolution CONSIDERING GOINGWhat That Looks Like Let’s Talk About DARK? Who isn’t feeling the people, who are our greatest asset. While By keeping them busy, your sales staff will pain these days? This your dealership may have made the decision feel no need to resort to desperate selling. past year has been tough; there’s no doubt. to go “dark,” there is most likely someone In result, the sales person (and the dealer) As a result, many dealers have been faced down the street who has continued to can turn inventory at a faster rate and for a with the need to make difficult decisions promote in some fashion, creating more higher gross per unit. •Increase sales by 30% based on their current situation. However, hype, more energy and, in turn, more •Increase ad response when making these decisions, many are sales. At this stage, a loss of energy and Obviously, the more cars going out the •Generate Excitement having trouble thinking beyond the present momentum on the sales floor translates to a door at a higher gross means an increase in and acknowledging the effects of their loss of pay for your top guys. We know the dealership profitability, but take a second to •Exclusive Territories decisions down the road. best sales people don’t work for free, so they consider the effects of this momentum on •User friendly will find someone else with something to the dealership staff. The best sales people Over the past few months, I have spoken offer them that will satisfy their needs. work for the best pay, and the best pay comes with a number of dealers about what they from the employers whom are dedicated to foresee for themselves and their dealerships Without your greatest assets, “hope” does creating an exciting selling environment. The Dealer Cost in the coming year. While some shared their not become much of a strategy. With few energy and enthusiasm generated from strong optimism, many admitted their hesitations and told me of their hope to wade out the storm by going “black” with their advertising dollars. customers streaming in to buy, inventory continuing to age, and with no good sales people to support the sales process, there is little to be optimistic about. Unfortunately traffic and increased profitability creates a confident and energized sales staff that is driven by performance. In addition, your $ 159 dealership will begin to attract the attention for many, this loss of hope signifies a closely of other top sales people and managers In theory, severely cutting back on approaching dead end. Whether the dead advertising expenses seems sensible when around your region whom may be stuck in end signifies the close of the business or a a less-enthusiastic environment. This gives times are tough. This decision, however, complex restructuring, neither option can often harbors unforeseen consequences. A the dealer the pick of the litter when it comes really be classified as an optimal outcome. to creating a strong sales force and building drastic cut in advertising means a drastic cut in traffic. With nothing established to However, the road doesn’t have to end like upon his or her greatest asset. In the end, an drive new or repeat business, we enter into this. For some, this may be hard to believe, increasingly profitable bottom line combined a downward spiral of dismal returns, lack but not every dealer has accepted “hope” as with a strong and productive sales force will of sales and decreased market share. While a strategy. So what does that mean for them? create security amongst the dealership and declines such as these may be assumed, don’t be fooled. The buck doesn’t stop here. Actually, these are just a few of the warning It means an opportunity to seize available market share while their competitors sit patiently on the sidelines. keep everyone happy across the board. While there may be no good answer to 3 Day Las Vegas Getaway what the future has in store, just remember signs preparing us for the painful path ahead. While zero advertising doesn’t necessarily With a drop in advertising by competitive dealers who have chosen to go “dark,” those dealers who have stayed loyal to the power that you are the writer of your own legacy. Consider the underlying outcomes of drastic cuts. While they may solve short- for two (including air) mean zero customers, it can mean an of advertising are automatically gaining term goals, there is a good chance that increased pressure to sell what you can to a stronger share of voice. Think of it like these decisions are just creating more whomever you can. This pressure opens this: If 100 people are in a room and each is complex problems down the road. Consider the door to the dangers of desperate selling talking, it is hard to decipher one message all options and their effects before deciding and will result in lowered grosses across the over all of the others. Yet when there are 100 that going “black” is the right thing to do. board. In addition, decreasing sales often people in a room and only one of them is After all, who wouldn’t want to make the means an increase in aged inventory and talking, you can hear that person’s message right decision (and hopefully some profit) huge losses at the auction. When combined, loud and clear. in the end? these characteristics create a formula for a steadily declining bottom line. As the dealers advertising voice gets stronger, so does their market share. This It doesn’t stop there. As profitability steady or increasing momentum helps to Matt Baker is the vice president of sales continues to drop, there is little to fuel keep the sales staff focused on proven for G&A Marketing. He can be contacted energy and excitement on the sales floor. sales techniques versus spending their time at 866.618.8248, or by e-mail at CRUISE CANCUN LAS VEGAS Without this, we risk losing our top sales concentrating on the economic downfalls. mbaker@autosuccessonline.com. Point of sales and marketing material FREE on your 1st order! Call for your free information package: 40 1 877 993 6835 www.travelamerica.com www.autosuccessonline.com
  • 22.
    Dr. JohnC.Maxwell sales&trainingsolution Wildcat players dumped Gatorade on Shocked and silent, the Kentucky fans were their coach to celebrate the win. Kentucky left to stare at their soggy coach as the LSU students poured out of the stands and Tiger players celebrated their stunning, FINDING JOY waited to charge onto the field after the last-second victory. final whistle. In closing, happiness doesn’t always find Then, the LSU quarterback lofted the us, we have to pursue it. football as far as he could throw it. The The pursuit of improve and grow. However, we find joy clients will often discover a predominant ball bounced off the fingertips of a mob happiness. It’s one of by being comfortable in our own skin. theme that has brought them fulfillment. By John C. Maxwell is an internationally of players, and landed in the waiting recognized leadership expert, speaker our unalienable rights spelled out in The Happiness comes when we learn to take re-aligning with what has brought meaning arms of an LSU receiver who raced to the and author. To learn more about or Declaration of Independence, but what pride in our talents and to smile at our in the past, Williams feels her clients put end zone! LSU had won the game on a to contact him, please visit does it mean to pursue happiness? When quirks. themselves on track toward the pursuit of desperation pass! www.johnmaxwell.com. so many of us are unhappy and empty, how happiness. can we find joy? We have an inner drive to do something — a restlessness to make something happen. If we don’t nourish ourselves, joy will We must learn to reconcile the ambition At the same time, joy is discovered in the elude us. “We won’t fully to do with a willingness to be. peaceful quiet of a soul at rest. Alongside our restlessness for change, we have a need We nourish ourselves whenever we experience joy As agents change, leaders sense all is not well in the world. We see problems and for relaxation and recreation. enter into activities that build our energy reserves. Consider this list of common until we’ve search for solutions. Yet, if we only focus only on what is wrong, we miss the joy We won’t fully experience joy until we’ve answered life’s biggest question: Why am nourishment sources: • Music — What songs lift me? answered life’s of the blessings in our lives — family, friendship, health and freedom. We have I here? • Thoughts — What thoughts speak to me? biggest question: to offset our discontent with the status quo by finding contentment in the life we have Without a life purpose, we flounder around without direction or joy. Life coach • Experiences — What experiences rejuvenate me? Why am I here?” been given. SuEllen Williams encourages clients • Friends — What people encourage me? to write out their life story in five-year • Recreation — What recreation re- strengthen me? As leaders at our dealerships, we are lean increments, noting life-altering events and creates me? • Hopes — What dreams inspire me? and hungry, looking for opportunities to influential people. During the exercise, • Soul — What spiritual exercises • Home — What family members care for me? • Giftedness — What gifts activate me? • Memories — What memories make me smile? To find joy, we must clean up our vocabulary. We pursue happiness when we banish the “shoulda, coulda, wouldas” in life and decide that everything is fine the way it is. To reconstruct our vocabulary, it’s important to understand the difference between facts of life and problems. A fact of life is something we cannot change, but we can adjust our attitude about it. A problem is something we can change, and becomes possible when we take responsibility to fix it. To discover joy, it’s important to celebrate success. Timing is critical to celebration. Be sure to celebrate after the fact, and not before the job is done. The Kentucky Wildcat football team learned this lesson the hard way. In 2002, the Wildcats led the heavily favored Louisiana State Tigers 30-27 with two seconds left to play. The Tigers had the ball, but they were 75 yards away from 43 the end zone — an impossible distance to 42 cover in one play. www.autosuccessonline.com the #1 sales-improvement magazine for the automotive professional
  • 24.
    AUTOMOBILE PROTECTION PROGRAMS In today’s competitiveand ever-changing automotive market, car-care professionals, dealerships, and repair facilities face a wide range of challenges. Improving customer satisfaction, increasing profita- bility and customer retention are only a few of the daily challenges. Protex is committed to helping its customers overcome such challenges by offering its expertise and unique, customized programs and services that can benefit every department within a dealership or repair facility. DEALERS, DISTRIBUTORS AND AGENTS WANTED PLEASE CONTACT Charles Carney 206-409-7474 or Marc Schiller 418-933-2203
  • 25.
    Don’t be astranger Your customers move. By having current data in your They change phone numbers. DMS system you will be reaching customers with every marketing They change email addresses. campaign you initiate... distancing yourself from your competition. They should still be your customers. That means more profit potential for Is your message reaching them? every department in your dealership. DMS Update automatically insures all of the information in your 1-866-702-1566 DMS system (such as ADP or R&R) is current, accurate, and in compliance with the latest government regulations. www.dmsupdate.com DMS UPDATE