2. Introduction
Dealer Communications is the leading multi-media
information source for the automotive retail industry.
Connecting with franchised automotive dealers and
managers over ten million times per year.
Dealer Communications also hosts the industry
leading bi-annual Digital Dealer Conference and
Expositions.
2
3. Objective
To create 2014 issues of Dealer
Communication Magazine with a
fresh, new look and approach.
3
5. Objective
WEAKNESSES:
Heavy content
No Supporting images for the content
Author’s photo
Featured Dealer photos
Logo & Cover Design Flexibility
Quote box
Plain Layout
No Car / Automotive Section
Font
5
7. COVER
Vol. 20 No. 11
NOVEMBER 2013
Vol. 20 No. 11
NOVEMBER 2013
THE SEVEN MOST
IMPORTANT WORDS
IN CLOSING
David Lewis
Page 12
YOUR EXPECTATIONS
FOR 2014 WILL
DRIVE SUCCESS
JOHN
LEE
Owner
Lee Motors Co., Inc.
Page 26
THE SEVEN MOST IMPORTANT
WORDS IN CLOSING
David Lewis
Page 12
YOUR EXPECTATIONS FOR 2014
WILL DRIVE SUCCESS
Doug Austin
Page 23
10 THINGS TO STOP DOING
ON FACEBOOK NOW
BEFORE IT’S TOO LATE
Kathi Kruse
Doug Austin
JOHN
LEE
Owner
Lee Motors Co., Inc.
Page 26
Page 23
10 THINGS TO STOP DOING
ON FACEBOOK NOW
BEFORE IT’S TOO LATE
Kathi Kruse
Page 37
SMARTY PANTS
PARTS PRICING
Ed Kovalchick
Page 56
Page 37
SMARTY PANTS PARTS PRICING
Ed Kovalchick
BEFORE
n Used new set of font and color branding
Page 56
AFTER
n
Adjustment of background to focus more on the
subject or featured dealer
7
8. TABLE OF CONTENTS
TABLE OF CONTENTS
08
37
LEADERSHIP
Your Role as a Catalyst
Dave Anderson
10
10 Things to Stop Doing on
Facebook NOW Before It’s Too
Late
26
COVER STORY
ADVERTISING MARKETING
First Impressions!
39
SALES
COVER STORY
JOHN LEE
Owner
Lee Motors Co., Inc.
Kathi Kruse
Jim Boldebook
12
CONTENTS
08
Win the Ad Auction With Ad
Extension Bonus:
Google’s latest tweaks means
stronger position, lower cost for
well-run campaigns
26
LEADERSHIP
Your Role as a Catalyst
Dave Anderson
41
Technology and Herding Cats
10
The Three Things Salespeople
Have to Know About Handling Price
42
New Automation Technology Puts
Your Customers Behind the Wheel
12
The Seven Most Important
Words in Closing
OWNERSHIP
GM Dealers Get Ready for Your
Quarterly Business Contact Meeting
Richard Sox
19
Master The Interview Process
21
It’s the Management, Stupid!
23
With $5,000 in his pocket, World War II
veteran James Lee bought a small Ford
dealership in Elm City, NC in 1953.
First Impressions!
The Seven Most Important
Words in Closing
Joe Verde
17
Owner
ADVERTISING MARKETING
Tim McLain
David Lewis
14
LEE MOTOR GROUP
44
Sandi Jerome
Shawn Ryder
Cost To Market Clarifiers: How
The Metric Helps You Manage Used
Vehicle Profitability
Dale Pollak
46
Simon Jalbert
FINANCE INSURANCE
FI - Data Breach Risks
Merit Your Attention
With $5,000 in his pocket, World War II veteran
James Lee bought a small Ford dealership in Elm
City, NC in 1953.
His son John, born six years later, would ride
his bike after school to the small dealership that
didn’t even have a showroom. He fell in love with
the business at age six.
continued on page 26
Jim Boldebook
David Lewis
SALES
14
The Three Things Salespeople
Have to Know About
Handling Price
Joe Verde
OWNERSHIP
Robert Byerts
Loyd H. Rawls
Your Expectations for 2014
Will Drive Success
Doug Austin
49
Is Your Team Over Managed
Or Under Led?
51
FIXED OPERATIONS
Rick McCormick
Processes and the Strength of
your Fixed Operations
54
What is Your Higher Purpose,
Your Noble Mission? - Part II
Charlie Polston
56
Smarty Pants Parts Pricing
Ed Kovalchick
Gregg Criss
HONDA OF OCALA
Up 13% in service, Honda of Ocala increases profitability within 2 months of new marketing strategy
17
GM Dealers Get Ready for
Your Quarterly Business
Contact Meeting
19
Master The Interview Process
21
It’s the Management, Stupid!
23
Your Expectations for 2014
Will Drive Success
Richard Sox
Loyd Rawls
Loyd Rawls
NOVEMBER 2013
Dealer-magazine.com
BEFORE
n Used default color branding for each section
n Emphasized page number
Kathi Kruse
Win the Ad Auction With Ad
Extension Bonus:
Google’s latest tweaks means
stronger position, lower cost for
well-run campaigns
Tim McLain
41
Technology and Herding Cats
42
New Automation Technology
Puts Your Customers Behind
the Wheel
Sandi Jerome
Shawn Ryder
Cost To Market Clarifiers:
44
How The Metric Helps
You Manage Used Vehicle
Profitability
FINANCE INSURANCE
46
FI - Data Breach Risks
Merit Your Attention
49
Is Your Team Over Managed
Or Under Led?
Robert Byerts
Rick McCormick
FIXED OPERATIONS
51
Processes and the Strength
of your Fixed Operations
54
What is Your Higher Purpose,
Your Noble Mission? - Part II
56
Smarty Pants Parts Pricing
Gregg Criss
Charlie Polston
Ed Kovalchick
Dale Pollak
HONDA OF OCALA
Dealer magazine (ISSN 1537-6141) is published monthly by Dealer Communications, 8870 Darrow Road, Suite F-106, PMB 305, Twinsburg, OH 44087. Periodicals Postage
Paid at Brentwood, TN and additional mailing offices. POSTMASTER: Please send address changes to: Dealer Magazine, P.O. Box 16770, St. Louis, MO 63105. Subscriptions
are $48.00 per year, 12 issues per year, monthly. Back issues, $10.00 each. Make check payable to Horizon Communications. Send to: P.O. Box 16770 St. Louis, MO 63105.
Reprint requests: jdepalma@dealer-communications.com. POSTMASTER please send change of address to Dealer Magazine, P.O. Box 16770.
Dealer
39
Simon Jalbert
See on Page 30
4
37
10 Things to Stop Doing on
Facebook NOW Before It’s
Too Late
Up 13% in service, Honda of Ocala increases profitability within 2 months of new marketing strategy
See on Page 30
2
DEALER | NOVEMBER 2013
dealer-magazine.com
AFTER
n New header and footer layout
n Moved the Publisher infos in Editorial Section
8
9. EDITORIAL
PUBLISHER’S NOTES
EDITORIAL
Publisher’s Note
SEPTEMBER 2013
PUBLISHER
MICHAEL ROSCOE
CHIEF DIGITAL STRATEGIST
JOSEPH DE PALMA
jdepalma@dealer-communications.com
I
MEDIA MANAGER
ERIN HAITHCOX
have come to a conclusion…there are two kinds of dealers. The following is for
dealers who want to maximize their use of the Internet and technology to sell
and service more vehicles more profitably. If you don’t fit that description, read no
further, I can’t help you.
ehaithcox@dealer-communications.com
But if you do want to maximize your use of the Internet and technology to sell and
service more vehicles more profitably, I can help you…like I’ve helped thousands of
others. I’m not kidding…thousands.
CIRCULATION SUBSCRIPTION
RICH JARRETT
314-432-7511
I can help you and your managers solve your most pressing problems and issues
regarding the Internet and technology. I will do this by sitting you and/or your managers
down with a table of peers from similar sized operations so you can find out how others
solved the problems you’re facing.
I can help you find out what the most progressive dealers are doing to stay ahead
of the pack. I will do this by having them share their formulas for success with you.
I can help you learn from the top minds and thought leaders in the industry. I will
do this by making 100 of them available to you, sharing their knowledge, experience
and expertise.
I can help you see the future by having world- renown people from outside of the
automotive industry share what they see is coming down the road.
I can help you see more new technologies, solutions, applications and services in
one day than you could see in a month.
But I can only help you if you’re willing to help yourself.
So help me help you; as I help 1,000 other dealers and managers at…
The 15th Digital Dealer Conference Exposition in Las Vegas October 15th-17th.
Some dealership groups bring 4, 10, 16…even as many as 22 people. What do they
know that you don’t? What will they know after they’ve attended and you haven’t?
NOVEMBER 2013
I have come to a conclusion…there are two kinds
of dealers. The following is for dealers who want to
maximize their use of the Internet and technology to
sell and service more vehicles more profitably. If you
don’t fit that description, read no further, I can’t help
you.
But if you do want to maximize your use of the Internet
and technology to sell and service more vehicles more
profitably, I can help you…like I’ve helped thousands
of others. I’m not kidding…thousands.
PHOTOGRAPHER
DONNA GREEN
I can help you and your managers solve your most pressing problems and
issues regarding the Internet and technology. I will do this by sitting you and/
or your managers down with a table of peers from similar sized operations so
you can find out how others solved the problems you’re facing.
I can help you find out what the most progressive dealers are doing to stay
ahead of the pack. I will do this by having them share their formulas for
success with you.
rjarrett@dealer-communications.com
ADVERTISING SALES
sponsorships@dealer-communications.com
I can help you learn from the top minds and thought leaders in the industry. I
will do this by making 100 of them available to you, sharing their knowledge,
experience and expertise.
Dealer magazine makes every attempt to
ensure the accuracy of all published works.
However it cannot be held responsible for
opinions expressed or facts supplied herein.
Nothing may be reproduced in whole or in
part without written permission from the
publisher. All rights reserved. The publisher
encourages you to submit suggestions.
Submitted materials become the property of
Horizon Communications, Inc. and will not
be returned. Send material for publication
to 8870 Darrow Road, Suite F-106 / PMB 305,
Twinsburg, OH 44087. The editor reserves the
right to edit material; submission of material
constitutes permission to edit and publish that
material. This publication is designed to provide
accurate and authoritative information in regard
to the subject matter covered. It is presented
with the understanding that the publisher is
not engaged in rendering legal, accounting
or other professional service. If legal advice or
other expert assistance is required, the services
of a competent professional person should be
sought. From a Declaration of Principles jointly
adopted by a Committee of the American Bar
Association and a Committee of Publishers.
I can help you see the future by having world-renown people from outside
of the automotive industry share what they see is coming down the road.
I can help you see more new technologies, solutions, applications and
services in one day than you could see in a month.
But I can only help you if you’re willing to help yourself.
So help me help you; as I help 1,000 other dealers and managers at…
The 15th Digital Dealer Conference Exposition in Las Vegas October
15th-17th.
Some dealership groups bring 4, 10, 16…even as many as 22 people. What
do they know that you don’t? What will they know after they’ve attended and
you haven’t?
You’ve been reading this magazine for many years, the same quality of
content you’ve been getting in Dealer magazine is what you can expect at
Digital Dealer. So come out to Las Vegas with some of your managers and
learn how to maximize using the Internet and technology to sell and service
more vehicles more profitably.
And if you won’t help yourself…at least help your business by sending
someone.
A PUBLICATION OF
I guarantee it will be well worth it.
You’ve been reading this magazine for many years, the same quality of content
you’ve been getting in Dealer magazine is what you can expect at Digital Dealer. So
come out to Las Vegas with some of your managers and learn how to maximize using
the Internet and technology to sell and service more vehicles more profitably.
PUBLISHER
MICHAEL ROSCOE
mroscoe@dealer-communications.com
COO
JOSEPH DE PALMA
jdepalma@dealer-communications.com
MEDIA DIRECTOR
ERIN HAITHCOX
ehaithcox@dealer-communications.com
MAGAZINE MANAGER
CEREN ISILDAK
cisildak@dealer-communications.com
GRAPHIC DESIGNER
KRISTINA BRESSLER
PHOTOGRAPHER
JEFFREY REEDY
CIRCULATION SUBSCRIPTION
RICH JARRETT
314-432-7511
rjarrett@dealer-communications.com
ADVERTISING SALES
sponsorships@dealer-communications.com
Dealer magazine makes every attempt to ensure the
accuracy of all published works. However it cannot
be held responsible for opinions expressed or facts
supplied herein. Nothing may be reproduced in whole
or in part without written permission from the publisher.
All rights reserved. The publisher encourages you
to submit suggestions. Submitted materials become
the property of Horizon Communications, Inc. and
will not be returned. Send material for publication
to 8870 Darrow Road, Suite F-106 / PMB 305,
Twinsburg, OH 44087. The editor reserves the right
to edit material; submission of material constitutes
permission to edit and publish that material. This
publication is designed to provide accurate and
authoritative information in regard to the subject
matter covered. It is presented with the understanding
that the publisher is not engaged in rendering
legal, accounting or other professional service. If
legal advice or other expert assistance is required,
the services of a competent professional person
should be sought. From a Declaration of Principles
jointly adopted by a Committee of the American
Bar Association and a Committee of Publishers.
PUBLICATION OF
Mike Roscoe
President, Dealer Communications
Conference Chairman
And if you won’t help yourself…at least help your business by sending someone.
I guarantee it will be well worth it.
Dealer magazine (ISSN 1537-6141) is published monthly by Dealer Communications, 8870 Darrow
Road, Suite F-106, PMB 305, Twinsburg, OH 44087. Periodicals Postage Paid at Brentwood, TN and
additional mailing offices. POSTMASTER: Please send address changes to: Dealer Magazine, P.O. Box
16770, St. Louis, MO 63105. Subscriptions are $48.00 per year, 12 issues per year, monthly. Back
issues, $10.00 each. Make check payable to Horizon Communications. Send to: P.O. Box 16770 St.
Louis, MO 63105. Reprint requests: jdepalma@dealer-communications.com. POSTMASTER please
send change of address to Dealer Magazine, P.O. Box 16770.
MICHAEL ROSCOE
President, Dealer Communications
Conference Chairman
6
Dealer
SEPTEMBER 2013
DMAG_SEPT_FINAL.indd 6
BEFORE
n Applied new font style and layout
Dealer-magazine.com
8/29/13 2:45 PM
n Minimalist approach that compliments the branding style
4
DEALER | NOVEMBER 2013
dealer-magazine.com
AFTER
n New header and footer layout
n Moved the Publisher infos in this Section
9
10. SINGLE PAGE ARTICLE
DIGITAL DEALER
DIGITAL DEALER
Technology and Herding Cats
Technology and Herding Cats
SANDI JEROME
S
upervising the accounting office
was my least favorite tasks
as a CFO/controller. I’d rather
create a new spreadsheet or write a
report on our DMS system. I used the
phrase “herding cats” to describe the
difficulty involved in coordinating the
efforts of so many office staff members
with different personalities and skills
levels. As my career progressed and I
ended up supervising more and more
offices and staff members - it became
apparent that I would need to find a
solution using technology to make this
task easier. My goal was to produce
a financial statement on the 3rd
working day after deal cutoff (creating
the 3-day close method) and I found
this much harder with a larger office.
Normally you would think that a bigger
office staff (larger dealerships) would
mean a faster close - but the need
to coordinate their efforts became
greater as the sales volume and staff
size increased. When I supervised a
small office, I could just look out at
the billers desks and see how high the
stack of deals was and go grab a few
and post them. A larger office meant
that I was having to roam around area
where all the billers worked and count
how many deals for each and try to
balance to stacks to make it even and
reach our deadline. There were way
too many for even a Super Controller
to post to get caught up. It was at this
point that I came up with an idea - why
can’t we flag deals for billers like we flag
time for technicians? Imagine if your
billers were fighting for the next deal to
post - even going into the FI and sales
office asking for more deals? A backlog
of deals is the number one reason why
it might be the 4th of the month and
you don’t have a financial statement.
Although getting the deals into the
office earlier in the month is your best
solution, I don’t think we’ll be able to
influence the sales and FI department
enough to get them to turn in the deals
faster. In fact, weekly sales commission
cutoffs haven’t improved the flow
because it is the managers who
“Why can’t we flag deals
for billers like we flag time
for technicians??”
control the flow of deals and they are
paid monthly. Instead, weekly sales
commissions have only made the
close more difficult because the office
is trying to pay a weekly commission
payroll and close the month at the
same time. In addition, it generates
more payroll checks which causes
higher bank fees and chargebacks.
How can you start flagging the office
for the deals they post? First you have
to change from being an old-fashioned
desk based accounting office to a taskbased accounting office. You need to
separate both your tasks and staff into 3
categories; CAT - confidential, accurate
and timely, B-Better and A-Anyone. I’d
love to have an office full of Cats - but
normally only your office manager and
the payroll clerk fall into that category.
We’ll spend half at day at my Profit
Academy in Las Vegas November 1921st working on understanding how to
Dealer-magazine.com
separate tasks and your office staff into
these categories. How long does it take
to switch from a desk based office to a
task-based office? For some it can be a
matter of weeks, but for others with a
seasoned staff - the change is difficult.
The best place to start is when you are
hiring your next office replacement.
Instead of hiring to replace a desk move some of the lower level items
from other desks and hire a new A
person. Move the important tasks to
your B level staff that wants to grow
into a “CAT.” There are many things that
you can do to motivate your office;
bonuses based on deals worked, a
bonus for having a certain amount
of B or higher tasks assigned - or my
favorite which is 4 hours free time off if
the close is completed in 3 days. Please
email me if you’d like the 3 day close
plan or a list of the accounting office
tasks.
Sandi Jerome is a Former CFO,
System Administrator and Fixed
Operations Manager with over 30 years
experience in the automotive and truck,
and RV industry. She is the owner of
Sandi Jerome Computer Consulting
and can be reached at sjerome@dealercommunications.com
SCAN to COMMENT
on this article
Or visit http://DLR.bz/201141
For more articles, blogs and
daily news visit us at
www.Dealer-magazine.com
NOVEMBER 2013
Dealer
BEFORE
n Applied new font style
n New call-out box, key stopper and QR code box
41
Sandi Jerome is a Former CFO, System Administrator and Fixed Operations Manager with over
30 years experience in the automotive and truck, and RV industry. She is the owner of Sandi
Jerome Computer Consulting and can be reached at sjerome@dealer-communications.com
S
upervising the accounting
office was my least favorite
tasks as a CFO/controller. I’d
rather create a new spreadsheet or
write a report on our DMS system. I
used the phrase “herding cats” to
describe the difficulty involved in
coordinating the efforts of so many
office staff members with different
personalities and skills levels. As my
career progressed and I ended up
supervising more and more offices
and staff members - it became
apparent that I would need to find a
solution using technology to make this
task easier. My goal was to produce
a financial statement on the 3rd
working day after deal cutoff (creating
the 3-day close method) and I found
this much harder with a larger office.
Normally you would think that a bigger
office staff (larger dealerships) would
mean a faster close - but the need
to coordinate their efforts became
greater as the sales volume and staff
size increased. When I supervised a
small office, I could just look out at the
billers desks and see how high the
stack of deals was and go grab a few
and post them. A larger office meant
that I was having to roam around area
where all the billers worked and count
how many deals for each and try to
balance to stacks to make it even and
reach our deadline. There were way
too many for even a Super Controller
to post to get caught up. It was at this
point that I came up with an idea - why
can’t we flag deals for billers like we
flag time for technicians? Imagine if
your billers were fighting for the next
deal to post - even going into the FI
and sales office asking for more deals?
A backlog of deals is the number one
reason why it might be the 4th of the
month and you don’t have a financial
statement. Although getting the deals
into the office earlier in the month is
your best solution, I don’t think we’ll
be able to influence the sales and FI
department enough to get them to turn
in the deals faster. In fact, weekly sales
“Why can’t we flag
deals for billers like
we flag time for
technicians?”
commission cutoffs haven’t improved
the flow because it is the managers
who control the flow of deals and
they are paid monthly. Instead, weekly
sales commissions have only made the
close more difficult because the office
is trying to pay a weekly commission
payroll and close the month at the
same time. In addition, it generates
more payroll checks which causes
higher bank fees and chargebacks.
How can you start flagging the office
for the deals they post? First you
have to change from being an oldfashioned desk based accounting
office to a task-based accounting
office. You need to separate both
your tasks and staff into 3 categories;
CAT - confidential, accurate and
timely, B-Better and A-Anyone. I’d
dealer-magazine.com
love to have an office full of Cats - but
normally only your office manager and
the payroll clerk fall into that category.
We’ll spend half at day at my Profit
Academy in Las Vegas November
19-21st working on understanding
how to separate tasks and your office
staff into these categories. How long
does it take to switch from a desk
based office to a task-based office?
For some it can be a matter of weeks,
but for others with a seasoned staff the change is difficult. The best place
to start is when you are hiring your
next office replacement. Instead of
hiring to replace a desk - move some
of the lower level items from other
desks and hire a new A person. Move
the important tasks to your B level
staff that wants to grow into a “CAT.”
There are many things that you can
do to motivate your office; bonuses
based on deals worked, a bonus for
having a certain amount of B or higher
tasks assigned - or my favorite which
is 4 hours free time off if the close is
completed in 3 days. Please email me
if you’d like the 3 day close plan or a
list of the accounting office tasks.
SCAN to
COMMENT
on this article
or visit
http://DLR.bz/201107
For more articles, blogs and
daily news visit us at
www.Dealer-magazine.com
NOVEMBER 2013 | DEALER
7
AFTER
n New header and footer layout
n New layout for the title and author’s profile
10
12. AFTER
SPREAD ARTICLE 1
SALES
That is it, seven easy words.
The Seven Most Important
Words in Closing
David Lewis is the President of David Lewis Associates, Inc. a National Training and
Consulting Company that specializes in the Retail Automotive Industry. He is also the author of
3 industry related books, “The Secrets of Inspirational Selling,” “The LEADERSHIP Factor” and
“Understanding Your Customer.” You can email David at dlewis@ dealer-communications.com
W
Would you like to buy the car?
We all know there is one thing we all
forget to do some times, and that is
ask for the sale. But if you develop the
habit today of simply asking people,
“would you like to buy the car,” and
build it into your sales routine. You will
never forget to do it.
Closing is asking for the sale and can only be done
once you have earned the right to do so. Why would
you ever want to ask for the sale if all the value of
your product has not been presented? Ironically, in
our industry we teach some closing techniques that
just do not make sense.
All three of those are comments you do not want to hear.
Some will even try to trick or confuse the Customer by
stating, “And how would you like this to be titled?” That is
not a closing question; that is an indirect form of pressure.
Even worse, most people realize the intent of the question
and become very turned off and defensive.
14
DEALER | NOVEMBER 2013
n Used supporting images
Those of you who know me personally,
have been to one of my classes, or are
a regular viewer of my weekly Sales
Meetings, know I do not make many
promises. But in this case, I promise
you, if you ask everyone from today
forward after presenting numbers,
“would you like to buy the car,” some
will come right out and state YES.
And for those who do not, most will
now respond with a reason as to why
they are not ready to buy today and
after successfully overcoming their
objections, guess what your final
statement will again be?
hether you are a Salesperson or Sales
Manager, your main goal is to close sales.
Everything we do up to that point is all
just set-up and preparation, yet so many of us fail
when it comes to this final step. In actuality, we fail
approximately 75% of time. You may ask how I came
up with that percentage. Well, the industry average
closing ratio is 25%. This means if 25% percent of
our Customers buy, and 75% do not, then we failed
75% of the time.
I cannot tell you how many times I have asked a class of
automobile sales professionals what they say immediately
after they have presented their Customer’s with the figures
to buy the car and every time most will state that they say
nothing. Saying nothing is not asking for the sale. It is
opening the door to get responses that you do not want to
hear. Responses such as, “Is that your best price,” “How
much are you giving me for my trade” and the worst one of
all, “Well let us go home and think about it.”
Do you know what is so exciting
about these words? Some people will
actually say YES.
Once you have presented the numbers, there is only one
thing you want the Customer to say, and that is YES! Yes,
we would like to buy the car.
So why not just come out and ask for the sale. Ask the
Customer to buy the car. If you are the Salesperson and
have professionally earned the right to do so, no one will
be mad or insulted. If you are the Sales Manager and are
coming in for the close and the Salesperson has made the
proper presentation, most expect to be asked for the sale.
So, why not just do it.
The seven most important words in closing are: “Would
You Like to Buy the Car?”
It is a simple, non-pressure, direct question and one
that is expected. The time has been invested making the
presentation, effort set forth to prepare the figures, and
now the time is right to simply ask the Customer, “Would
you like to buy the car?”
dealer-magazine.com
n New call-out box, key stopper and QR code box
smarter service
Powerful results for dealership service
Oh…. by the way, would you like to
buy the car today is 8 words. So never
state today, because today is one of
those pressure words you want to try
and stay away from.
Give it a try; I know you will like the
results.
EDGE WorldClass™ is the industryleading solution that improves
dealership fixed operations,
performance and profitability.
SCAN to
COMMENT
the result:
increased revenue,
retention and
customer satisfaction.
on this article
or visit
http://DLR.bz/201114
For more articles, blogs and
daily news visit us at
www.Dealer-magazine.com
iGnite Your service dePartment
With edGe Worldclass™ todaY.
888.503.8040
dealer-magazine.com
The industry’s most comprehensive
digital inspection solutions.
NOVEMBER 2013 | DEALER
15
www.MPiWorldClass.com
n New header and footer layout
n New layout for the title and author’s profile
12
14. AFTER
SPREAD ARTICLE 2
ADVERTISING AND MARKETING
First Impressions!
Jim Boldebook is President of Creative Broadcast Concepts (CBC), an advertising/marketing
agency working with some of America’s most successful dealerships. You can email Jim at
jboldebook@dealer-communications.com
“What you see…
is what you get.”
N
o matter how slick your
advertising is… the production
value of your radio and TV,
the professionalism of print, the slick
savvy of your digital. No matter how
cute or clever or compelling your
tag line or slogan, nothing impacts
the perception of a shopper like the
first things they hear, see, smell and
touch at your dealership. I’m not an
‘advertising guy’, I’m a marketing guy.
I founded one of the most successful
automotive retail marketing agencies
in America almost 30 years ago. And
after three decades of working with
some exceptional dealerships (and a
few not-so exceptional) I can tell you
that Advertising is a very small slice of
the large Marketing pie of ‘conception
to consumption.’ Every slice of that
pie deeply affects the degree of
success of the whole pie. None
more than a customer’s first physical
touch experience. And nothing, in
my opinion, has more impact on your
brand perception.
But it’s about a lot more than just what
your customers see and here. For lack
of better definition I call it the ‘energy’
of the dealership which is primarily
drive by attitude and leadership. It’s
not just one thing…it’s everything
synergistically aligned that tells the
customer “You’ve come to the right
12
place.” It has a lot to do with the
‘smile factor’. Countless research has
demonstrated the power of a smile,
a warm greeting, a sincere desire to
make the customer feel genuinely
important and appreciated.
Don, a Chevy dealer from the Midwest
who I’ve known for the past 15 years,
conducts frequent test drives of his
dealership ‘attitude’ with friends. In
exchange for dinner for two at one of
the best restaurants in town, Don’s
friends anonymously pay a visit to the
dealership. In a one page questionnaire,
they give their first impressions of
display, lot and showroom (including
bathroom) cleanliness, the greeting
they receive, the comments they
overhear in the showroom from
customers and dealership personnel
and finally a grade on the overall
shopping experience. Four times a
year Don meets with his leadership
team to discuss the feedback. He
never reveals the identity of his
secret shoppers. Don, himself, will
occasionally break from his routine
schedule to do a quick walk-about
with his team leaders throughout the
entire dealership property. “I inspect
what I expect” says Don. Music
too loud in the showroom? Promo/
price signs not in conformance with
policy? Coffee maker empty or stale?
Cigarette butts near the entrance?
Don doesn’t point them out, he quietly
asks the team leaders: “What ain’t
right here?” “Great, let’s get it fixed
and find out how we can keep it fixed.”
I learned the importance of this kind of
critical self-scrutiny in the restaurant
business in 1979 after a regular
patron asked me if I was selling the
restaurant or had I just lost interest? I
asked her why she said that. She said
she saw weeds growing up by the
flower boxes on her way in. There were
two bulbs not lit in the light fixture near
her table and there was a trail of toilet
paper outside the ladies room where
it had apparently stuck to the foot of
a customer. I asked this lady how her
meal was. She said “Fine, the prime
rib was great and the vegetables were
exactly how she liked them.” After
brooding over the critique for several
days I wrote a letter to the lady with a
$100 gift certificate in consideration
of her facilities consultation. Our team
of waiters, bus people and even the
kitchen crew had a meeting in which
we all grew new eyes, new ears, and a
new sense of smell. Everyone agreed
it was shameful that a loyal customer
had to point out the obvious and
everyone agreed that we, as a team,
had a responsibility to make sure we
didn’t look like we had lost interest or
the business was for sale ever again.
Almost immediately I started getting
the feedback we needed to stay on
top of our game. Replace menus that
were soiled/dog eared. Windows
need cleaning. Cobwebs on top of
the hall hutch and clock. We got back
on top of our game and it made a
difference, not just to the customers
but to pride of everyone on the team.
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It’s so easy to overlook the obvious
when we get busy with our core
business duties, but it’s the little
things, the first impressions that set
us apart from the crowd.
Several years ago I had rotator cuff
surgery at an orthopedic surgery
center in Maine. This facility, owned
and operated by a group of exceptional
surgeons, takes pride in every aspect
of the operation. I was invited for a presurgical tour of the operating room,
given an explanation of the exacting
standards for cleanliness and safety
precautions, met the surgical team,
was given a thorough explanation of
every single phase of the operation.
When I arrived at 6am a few days
later for the surgery, I was literally
greeted at the door. I felt like royalty.
It was the best medical procedure
of my life. Obviously I couldn’t watch
once under the anesthesia, but I went
‘under’ with greater confidence from
the first impressions.
I can’t tell you how many friends and
relatives I’ve referred to this center
over the years, but it’s a lot. You
might call me an ambassador for this
medical group.
Paying close attention to detail,
constantly seeking to perfect the
setting, orchestrating every aspect
of your operation to maximize the
value of the first impression is easily
the best investment you’ll every make
in honing your brand experience. It
shouldn’t be a job description for one
individual. It should something that is
embedded like a chip into every single
dealer-magazine.com
team member through training and
leadership.
Want a free list of questions that my
friend Don gives to his friends to help
him evaluate his dealership? Just send
me an email.
Happy Thanksgiving to you, your
family and your team!
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14
16. AFTER
INSIDE COVER STORY 1
COVER STORY
LEE
MOTOR
GROUP
With $5,000 in his pocket,
World War II veteran James Lee
bought a small Ford dealership
in Elm City, NC in 1953.
H
is son John, born six years later, would
ride his bike after school to the small
dealership that didn’t even have a
showroom. He fell in love with the
business at age six.
In those early years, he cleaned toilets, swept
floors, worked in the tobacco fields for the local
farmers, while learning from his dad how to work
hard and treat people right.
At age 20, while still in college, John found himself
running the dealership after his dad died. At the
time, the dealership had fewer than 25 employees
and John had yet to sell his first car.
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He and his wife, Lynn, have turned that small business
into Lee Motor Group, which now has 10 dealerships
in four states, including one of the top-selling Hyundai
dealerships in the country. Seven of the stores were
open points awarded to Lee Motor Group. With the
addition of a corporate airplane and helicopter, John and
his President, Tim Varnell, are able to visit and manage
the stores on a timely basis.
Continuing a practice he began when he first took over
the store, John still gives his personal phone number to
every customer who buys from the dealerships in North
Carolina.
He credits hard work, integrity and treating people right
for the extraordinary success he’s experienced through
the years.
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18. AFTER
INSIDE COVER STORY 2
COVER STORY
John, walk us through the early history of your
organization, when you first started with your
father and then the transformation to when
you took over the dealership.
I grew up in the car business. Before becoming a Ford
dealer, my father, James Lee, started working at a Ford
plant in Norfolk, VA, after he got out of the Navy in 1946.
A couple of years later, he had an opportunity to work
for a couple of small dealers in the northeastern part
of North Carolina -- this was in the late ‘40s and early
‘50s. In 1953, with $5,000, he bought an almost-closed
small Ford dealership in Elm City, NC. It was a town of
about 1,000 people, located between two fairly goodsized mid-markets, Wilson and Rocky Mount.
I was born about six years later in 1959 – the third of
three children - and grew up in that small town. I could
ride my bicycle to school. I would also ride my bicycle
down to the original dealership -- Lee Motor Company.
Truth is, it was a very small dealership – wasn’t even
big enough for a showroom. My dad might have had 12
employees.
“Son, I want to tell you something.
The reason that I bought this car from
you is you didn’t act like I could not buy
because I was wearing my overalls.”
I was able to spend a lot of time there. I certainly had
an interest from day one in the business. I liked being
around a car dealership and being in back in the service
department with the mechanics or watching how cars
were sold.
My father had a great personality. People really liked
him. People trusted him. He could talk to anybody. He
treated everybody the same, which is, by the way, how
I’ve always wanted to conduct my life in dealing with
people.
He had a real good trade with farmers. He could talk to
a farmer that had been in the field for 14 or 15 hours or
he could talk to a local banker. And he always treated
them the same. I had the good fortune to watch that
growing up. He was somewhat old-fashioned – a World
War II veteran. But for whatever reason, whenever
I hung out there, he never told me to go home or go
play ball somewhere. He was very happy to have me be
there and to sit in his office to watch and listen to him,
which was great because I just was very interested in
-- enthralled you could say -- with the car business.
10
What was your first real job at the dealership?
Well, of course, I’ve done it all. After Elm City, we moved
to Wilson in 1967, and about three years later, he had
built a facility on a major highway, Highway 301, which
is the main north-south route.
To answer your question, I really did do everything. I
cleaned commodes. I scrubbed floors. I swept. I said
“Hello” to customers. I washed cars, changed oil, did
tune-up jobs. You name it, I’ve done it. But the proudest
thing I can say in my life, outside of my family, is that I
can never remember not having a job. We lived in the
country. I grew up “putting in tobacco,” which is what
we called it. I worked in the tobacco fields and on a hog
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dealer-magazine.com
farm. I bagged groceries. I know these jobs aren’t related to
the car business, but you name it, I’ve done it. I’m proud of
the fact that the good Lord gave me a drive to work, and that
my father and parents were hard-working people. I saw that
and it inspired me. If you want something, you have to work
for it. And that’s exactly what I did.
John, how do those lessons of work experience
translate to your experience now as an owner?
Well, I’m attracted to people who have a good work ethic.
I’m able to recognize an individual who really wants to put in
the time to make a difference. There are all sorts of clichés
in our business. You can work smart, you can work hard, but
I believe you have to work hard and smart.
This is a very demanding business. We have to be on our
best game when people are getting off work, and we have to
be prepared. I’ve always prided myself in being able to pick
employees who have a strong work ethic and want to put in
the time to make a difference and to improve themselves.
Let’s fast forward from 1970 up to 2013 – 43 years
later. You began as a single point Ford dealership
with a family. You’ve grown to an amazing size.
Tell us about the challenges you’ve had getting to
this point.
Let’s see. I had never worked in any kind of white collar
situation in the dealership until my father became sick in
1979. He was only 56 when he passed away.
dealer-magazine.com
NOVEMBER 2013 | DEALER
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18
19. AUTOMOTIVE SECTION
For Approval Section
MOCK-UP
Additional feature section for the latest Car
Technology, to encourage also Car Enthusiast
to dealerships. This section can be optional
per issue.
19
20. AUTOMOTIVE SECTION 1
FEATURE
First Drive:
Audi R8
O
n a rain-slicked night in Italy’s soaring
Dolomites, that romantic attachment to Audi’s
once-groundbreaking,
damn-the-weather
traction system is easy to understand. We’re driving the
discreetly revamped R8 on a two-day northbound trek
from a Moto GP track in Rimini, to a memorable seaside
lunch in Venice and into the mountains of Italy and
Austria, descending to take a beer-soaked checkered
flag in Munich. But you don’t have to be living la dolce
20
vita to appreciate the oft-downplayed performance edge
of Quattro. On a slippery morning in Toledo, or a downpour
in Sonoma, Audi sports cars go all superhero while the
weather Kryptonites rear-drivers like Corvettes, sapping
their vaunted muscle, turning them into timid Clark Kents.
A nice set of winter tires helps. With autumn snow already
frosting high Alpine passes, an Audi engineer has prudently
shod our R8 convoy of V-8 coupes, V-10 Spyders, and
the V-10 Plus model with Dunlop Winter Sport tires.
DEALER | NOVEMBER 2013
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That V-10 Plus model is new. This weight-watching, 550hp show-off replaces the limited-run GT coupe and Spyder
atop the lineup when R8s reach showrooms in March.
(These time-travelers skip past 2013 for a 2014 modelyear designation). For now, the Plus is available only as
a hardtop. The Euro-market Plus we’re driving shaves
110 pounds from the standard V-10, in part via ceramic
brakes and less sound-absorption material. American
versions will weigh more, forgoing the Euro version’s
fiberglass shell seats and clear carbon engine cover.
dealer-magazine.com
Here, with the moon poking a hole in stubborn clouds, I’m
climbing a 525-hp V-10 Spyder through northern Italy’s Parco
Nazionale Dolomiti Bellunesi. This national park’s spectacular,
pink-hued granite walls and strange grassy peaks stand
between me and Bolzano -- or Bozen, the town’s Deutsche
name in this largely German-speaking province of South Tyrol.
NOVEMBER 2013 | DEALER
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n Short Description
n Car Specs and Review
20
21. AUTOMOTIVE SECTION 2
FEATURE
2014 Audi R8
On sale: March
Price: $115,000/$150,000/$180,000 (V-8/V-10/Plus, est.)
Engine: 4.2L V-8, 430 hp, 317 lb-ft; 5.2L V-10,
525/550 hp; 391/398 lb-ft
Drive: Four-wheel
EPA Mileage: 13/21 mpg (est.)
22
DEALER | NOVEMBER 2013
n Proposed section for the latest Car Trends
n Optional Section
dealer-magazine.com
dealer-magazine.com
NOVEMBER 2013 | DEALER
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n Car Specs and Review
21
22. through social media, who then pass a secret code-like
whisper to the order-taker at the store.
ntory.
ADVERTISER INDEX
t paying close
ost to Market
d they wonder
causes of the
k of discipline
d and acquire
Market metrics,
me and money
quire.
trollable costble to achieve
assuming they
es desks).
also recognize
three critical
ir used vehicle
ight” cars (e.g.,
a manner that
ront-end gross
Market).
es that dealers
his operational
, at all times,
r overall used
.
SCAN to COMMENT on this article
One diner remarked that had she known about this second
SCAN to COMMENT
Or she
“secret” option,visit would have opted for that choice, even
http://DLR.bz/201144
if the price-points were higher.
A marketing professor somewhere called the strategy
For more articles, blogs and daily news visit us at
www.Dealer-magazine.com to me a hidden menu whether in
“brilliant,” but it seems
the restaurant or car business is as good as no menu at
all. I suppose time will determine if our professor’s insight
is clear.
In ADVERTISER INDEX to selling aftermarket
the meantime, when it comes
products through the FI office, menus that clearly present
ADVERTISER the dealership’s array of offerings to customers translate
PAGE NO.
into more customers buying more products.
Ally Financial Services ...................................................7
The truth is, there is no better way to increase FI
Austin Consulting Group .......................................... 38 by using a menu. Not
penetration and profitability than
to mention that regular use of a
AutoMate...........................................................................5 menu helps ensure the
dealership’s compliance to consumer finance regulations
Automotive Resource Partners.......................30 - 31
as well.
BG Products ................................................................... 60
We know this because some dealers continue to use
Borroughs Corporation ............................................. 55 no menu at all. Instead,
“secret” menus, meaning they use
they present FI products less formally, less consistently
David Lewis Associates .......................................... 20
and less profitably. That is, they
Mobile Productivity, Inc ............................................ 13wing it – and it is costing
them a lot of bread!
NADA Used Car Guide ............................................... 43
For instance, in a recent study comparing dealership use
Playback Now ............................................................... 58
of FI e-menu software versus times they use no menu at
Progressive Basics........................................................ 59
all, e-menu use results in 32% penetration lifts for service
TD Auto Financecontracts and per-vehicle-retail increases on average of
..............................................................2
33%!
“That’s huge money,” said one dealer who participated in
the study.
NOVEMBER 2013 Dealer
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on this article or visit
http://DLR.bz/201117
For more articles, blogs and daily news visit us at
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ADVERTISER INDEX
ADVERTISERS
Ally Financial Services ......................................... 07
Austin Consulting Group .................................... 38
AutoMate ................................................................ 05
Automotive Resource Partners ..................30 - 31
BG Products .......................................................... 60
Borroughs Corporation ....................................... 55
David Lewis Associates................................... 20
Mobile Productivity, Inc........................................ 13
NADA Used Car Guide ....................................... 43
Playback Now ........................................................ 58
Progressive Basics ............................................... 59
TD Auto Finance ................................................... 02
45
BEFORE
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PAGE NO.
NOVEMBER 2013 | DEALER
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AFTER
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22