AutoSuccess Jul03

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. biz . biz . bi z July 2003 Let Freedom Ring Let Freedom Ring Attitude Is Everything Putting Your Intuition to Work The 4 P’s of Management ‘The Golden Rule’ of Selling Attitude Is Everything Putting Your Intuition to Work The 4 P’s of Management ‘The Golden Rule’ of Selling Where to Turn When Employees Need Training Where to Turn When Employees Need Training Becky Hubble Becky Hubble

description

AutoSuccess addresses the specific, researched needs of new car and light truck dealerships by providing entrepreneurial, cutting-edge, solution-based editorials to increase dealership profits and reduce expensesAutoSuccess, magazine, sales, new, used, selling, salespeople, vehicle, dealer, dealership, leadership, marketingFor similar content visit http://www.autosuccesssocial.com/

Transcript of AutoSuccess Jul03

Page 1: AutoSuccess Jul03

.biz.biz.biz

July 2003

Let Freedom RingLet Freedom Ring

Attitude Is Everything

Putting Your Intuition to Work

The 4 P’s of Management

‘The Golden Rule’ of Selling

Attitude Is Everything

Putting Your Intuition to Work

The 4 P’s of Management

‘The Golden Rule’ of Selling

Where to Turn WhenEmployees Need TrainingWhere to Turn WhenEmployees Need Training

Becky HubbleBecky Hubble

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AutoSuccess Magazine is published monthly at 756 South First Street, Suite 202, Louisville, Kentucky, 40202; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 [email protected]. Subscription rate is $75 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content, and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA.Postmaster: Send address changes to AutoSuccess Magazine, 756 South First Street, Suite 202, Louisville, Kentucky 40202.

Cut Your Losses on Training Terry L. Isaac Focus for Success Timothy Gilbert Profi t From Your Architecture: Display vs. Inventory Jeff Margaretten Putting Your Intuition to Work Brian Tracy CRM/Lead Management Software: The Need for Training Robert C. Gruen Keys to Success Fran Taylor The New Guy: Orientation & Teamwork Steve Hiatt Control the Desk and Control Your Profi ts Grant Cardone Where to Turn When Employees Need Training Becky Hubble Dealer Incentives Bob Bullock ‘The Golden Rule’ of Selling Ali Basakinci Attitude Is Everything Tony Ray Munson Success With a Respectable VSC Provider Dan Snyders The How-To of Motivation: A Step-By-Step Guide Pam Holloway Price or Payment Advertising Mark Warner Some People In Sales Make It All Look So Easy Joe Verde The Security of Your Dealership Bernard Boule The 4 P’s of Management Mark Tewart Power Prospecting = 100 Deals David Thomas

I N S I D E

756 South 1st Street, Suite 202Louisville, Kentucky 40202

Toll Free: 877.818.6620Facsimile: 502.588.3170

Web: autosuccess.biz

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Patrick Luck, Editor & Publisher• [email protected]

Susan Goodman, VP of Operations• [email protected]

Knight Miller, VP of Marketing• [email protected]

Lindsay Porter, Copy Editor• [email protected]

Amy Stuber, Advertising Services Mgr.• [email protected]

Amelia Ellenstein, Advertising Services• [email protected]

Thomas Williams, Creative Director• [email protected]

�I have been reading your magazine for a couple of years. It�s always been a very helpful tool in selling and closing deals, as well as other aspects of the dealership outside of selling. I�m always able to pick out at least two or three things that can be helpful hints for our sales staff. The timing of some of your articles always seems to pertain to one of our sales people each month. I�m constantly taking quotes out of your magazine and posting them in my ofÞ ce or conference room (giving you all the credit of course). There are several things I like about your publication, but two in particular are: how focused you are in making sure the deals are done the right way, nothing shady, nothing under the table, always up front in working deals and talking to customers; secondly, how you focus on having a good attitude and being positive in what you do. I�ll leave you with a quote I picked up from one of your previous articles. Desire to Succeed � �Whatever one conceives and believes is possible in their life, they will achieve.� Thanks for a great magazine, and keep up the good work.�

Mark Goodman, Sales Manager Jerry Barker Chevrolet Hummer, Byron, GA

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Terry L. IsaacBy Terry L. Isaac

Cut Your Losses on Training

sales and training solution

When do you stop investing time and money into a new sales person who can’t or won’t perform the job

they were hired to do? As much as we want to think they will succeed, there is a percentage that will never understand or perform their job successfully. Retention is a goal of every company, but there is good retention and bad retention. Good retention is the result of an employee who works to achieve success, and bad retention is the result of an employee that does just enough to get by. The sad thing is, we let them, and they think it’s okay to perform at a low standard.

As a manager, part of your job is to set the standards and hold your employees accountable. Measure their performance with basic information such as the number of prospects they are waiting on (you paid for those prospects through advertising dollars). If the number is low, this tells you that they are inactive and are not aggressive, and you have to be aggressive in sales. It may be a confi dence problem or laziness. Maybe you let them settle into a comfort zone, and you have to take the responsibility of getting them out of it.

The next number to track is their demonstration number. This tells you if they are trying to sell without doing an effective demonstration. They cannot achieve an acceptable closing percentage without an effective demonstration. This number also tells us if they have

a problem in product knowledge or a lack of understanding in how to show features and benefi ts. The problem could stem from the selection process. Are they asking the right questions to fi nd out the right vehicle that will meet their customers’ needs?

The next number to track is write-ups. This number will tell you a lot about the ability of the sales person to ask for the sale. After all, this is where the selling process is designed to lead them. Believe it or not, there is a high percentage of sales people who do not ask for a customer’s business. The closing percentage is a shared percentage between the manager and the sales person; you have the fi nal say in the negotiations. Tracking is the key to knowing the areas that your sales people need to develop. To build a successful sales team, you will need to work with them individually; each will need help in different areas. Remember, to be an effective sales person, one must be able to understand how to handle and overcome objections. Teaching a selling process without teaching how to overcome an objection (which will be encountered during the selling process) will show in numbers and in performance. If you let them continue without ongoing coaching, they will repeat the same numbers.

Look at your training procedure and process fi rst, and if it’s a solid, proven procedure for success, then the problem

is the wrong hire. They will never ‘bat a thousand’. Maybe they lack the desire to learn or just cannot be taught. Set standards in all of the areas they must achieve (this must be a standard for all and not a selected few). When the sales person falls below the standards, he/she must be worked with in the area they are having problems. Do not wait; this must be done at the end of each month, so they don’t start the next month the same way. Waiting will only cost you more in lost productivity.

Set a time frame (fi rst 30 days), review production numbers weekly, retrain for the next 30 days and review. If there is no sign of improvement, it’s time to free them up for another opportunity. This is the downside of ongoing efforts to increase retention in a high turnover career. The automotive sales career is a tough one, and we have to continue to improve and strengthen our efforts.

Your most costly employee is not your highest paid but your least productive. The goal of hiring and developing a sales professional is an ongoing challenge. You will win some and lose some, and in the end, you need to achieve a ROI, it’s the bottom line of a successful dealership.

Terry L. Isaac is the Corporate Sales Trainer for the Neil Huffman Auto Group. He can be contacted by email at [email protected].

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Timothy GilbertBy Timothy Gilbert

Focus for Success

sales and training solution

What’s the most signifi cant reason for your success? Perhaps it would be perseverance, or dedication, or

maybe working the system. It could be attitude, motivation or positive emotions. Or, you might say that it is

the support around you that helped you achieve your success.

If you had to give an answer, it would be diffi cult to single out the one, most important, most signifi cant reason for your success.

To those who are not as successful as

they would like to be, to what can you attribute your lack of success?

In truth, success does involve many things, but the trouble is that it can be so overwhelming trying to do all the right things, that instead of fi nding success many people do not get any of the improvements they are looking for.

Many times you get so confused about all the things you need to do that you are often not able to work as effectively as you should. To be successful, think about the most important thing on which you should focus. By focusing on only the most important thing at any time, you can make the necessary changes to improve your skills and become successful.

Focus on the one thing that you need to do immediately, the most important thing. Do it and then go on to the next thing. Find your most glaring weakness, concentrate on eliminating it and then go on to the next weakness. Deal with what you can get your arms around at any one time if you want to be successful. Too often, people want instantaneous success; they want all of their problems fi xed and all of the good innovations incorporated into their daily routine at the same time. It does not happen that way.

Here are some keys to building a successful future:

1. Start with building discipline and consistency; work on one aspect at a time.2. Improve weaknesses before tackling strengths.3. Start small, and build up (for example, if you fi nd yourself constantly rushing to work, get up 10 minutes earlier).4. Concentrate on improving strengths one at a time (if you are a good closer, practice making yourself better before going on to another area).5. Keep adding to the list.

Timothy Gilbert is an Associate Professor and Chairman of the Automotive Marketing Department at Northwood University Florida Campus. He can be contacted at 561.478.5527, or by email at [email protected].

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7july 2003

Jeff MargarettenBy Jeff Margaretten

Profi t From Your Architecture: Display vs. Inventory

marketing solution

In our May article, we concluded that the way to focus your customer on what you are selling is to accent the

difference between display vehicles and inventory vehicles. This month, we will expand on that by talking about ‘the dance of the dealership’ - drive in, look around, leave quick - the ‘short loop’.

You live in a dealer world built of your own accord. You encourage people to stay in their cars by making parking hard to fi nd. Your inventory is laid out right in front of them - inviting a quick drive and quick exit. It is easier to see everything by driving past it than it is to walk to it.

If you want to increase face time, eliminate the ‘short loop’. Follow these three steps, and you’ll see customers getting out of their cars, walking the lot and asking questions to your sales advisors.

Display = Customer space; Inventory = Dealer space. Where does one end and the next begin? Make this crystal clear. Display vehicles are for customers to walk around, get excited and develop purchasing questions. Inventory vehicles are for a sales advisor to show to a customer after they have conversed about needs, desires, etc. Set up your property so customers fi nd display fi rst, which leads to customer parking, where there is additional display, so a sales advisor may lead them to the inventory. This will increase face time with your sales staff and increase sales volume at the store.

Delineate salestrafÞ c from service trafÞ c.Service will account for 75 percent of your site traffi c, if not more. Show them where to go fi rst, and lead all the rest to the front door. Close off short cuts down aisles of cars by displaying a feature vehicle at the end of the aisle. Create a clear pathway leading from the curb cut straight toward the service drive and customer parking by outlining the way with display (not inventory) vehicles. This will help slow down traffi c, excite

sales customers and focus service customers on their destination point.

Provide customer parkingright in front of the front door.Is there anything more important, to the customer, on the lot? When it comes to looking for a parking spot, whether it’s at the mall, the grocery store or the library, everyone looks for the closest spot to the front door. It’s human nature to want to park closest to the front door. So give it to them. Putting vehicles for sale in this spot only delays them from walking in to talk to you. Provide an inviting entrance to your dealership, and customers will accept gladly.

Remember, just like at a shopping mall or a department store, display comes before inventory. Let display vehicles pique the customer’s desire to browse and ask questions. Then let sales advisors enter the situation when the

customer is ready, and show them the inventory.

The ‘short loop’ is a product of fear and opportunity. It is a product of customers having to answer questions that they are not ready to answer and having the opportunity to avoid them by looking at the inventory without getting out of their car. Feed their questions with displays and then show them the closest parking spot to the front door. Inquisitive customers will graciously get out of their cars, look at the enticing products, lift their heads and begin asking detailed questions.

Separate display from inventory, and you too can profi t from your architecture.

Jeff Margaretten is the Managing Principal of P3 Automotive. He can be contacted at 850.217.6365, or by email at [email protected].

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Brian TracyBy Brian Tracy

Putting Your Intuition to Work

leadership solution

It has been said that men and women start to become great when they begin to listen to their inner voices.

Intuition is so powerful that it has been studied and written about by the greatest men and women of history for thousands of years. When you begin to use it regularly and systematically, there is virtually nothing that you cannot accomplish.

Your intuition has often been called the ‘still, small voice’ within. You may experience your intuition as a gut-feeling, as an inner sense of what is right or wrong for you. Sometimes your intuition manifests itself as a hunch or an inspiration. Often it comes as a fl ash of insight. Your intuition leads you to new ideas, concepts and breakthroughs. Sometimes, an intuitive fl ash will enable you to see a situation completely differently and solve it on a completely different level. Einstein was referring to intuition when he said, “No problem can be solved on the same level at which you meet it.”

You can unlock your intuition by using your imagination to think about your problem in a completely different way. There are two major types of imagination

that you use continually, both of which require the highest use of your intuitive powers. They are synthetic imagination and creative imagination.

Synthetic imagination is your ability to assemble existing pieces of knowledge and information into new forms. It is very much like taking all the pieces of a jigsaw puzzle, having a clear idea of the picture or goal that you want to accomplish and assembling them into a single piece.

This form of imagination is often called, ‘integrative intelligence’. Integrative intelligence is defi ned as your ability to integrate a large number of different pieces of information into a single precept for decision and action. This form of intelligence is extremely valuable in fast-moving, fl uid situations that require your considering a large number of different pieces of information in making a decision.

The people who rise to the top of any fi eld or endeavor are invariably those who know more than others. In fact, the division in our society today is not between those who ‘have more’ and ‘have less’ but between those who ‘know more’ and those who ‘know less’. One of your jobs is to be continually gathering additional bits of practical and useful information so that you have plenty of

different ideas and concepts to draw upon when you are wrestling with any problem or striving toward any goal. Your intuition then goes to work for you by helping you quickly sort out the relevant facts and giving you the answers you need when you need them.

Creative imagination refers to your ability to come up with completely new and different ideas and concepts to solve your problems and achieve your goals. It is the highest form of imagination and is responsible for all the great breakthroughs in science, technology, art, music, literature and medicine. The most successful men and women of all time have been those who have deliberately trained themselves to tap into their creative imagination on a regular basis. And so can you, if you learn how.

Your creative imagination is the source of all hunches, inspirations, imagination, fl ashes of insight and new understandings of complex concepts. The cultivation and development of your creative imagination can enable you to make more progress in one or two years than the average person might make in ten or twenty. And your creativity, your intuitive sense, is like a muscle. It grows with use. The more you practice with it and rely on it, the stronger it becomes, and the faster it acts for you.

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Your intuition is your direct pipeline to a form of intelligence that is completely beyond your conscious brain. It is accessed by your subconscious mind, which is controlled by the thoughts you think and the beliefs you hold in your conscious mind. The more you affi rm and visualize your desired goals in your conscious mind, the more readily they are picked up by your subconscious mind and the more rapidly your intuition or creative imagination is triggered.

In your lifetime, you have made a lot of decisions, some of them right and some of them wrong. But when your intuition tells you to do or to not do something, it is always correct. If you have ever gone against your intuition, your inner voice, haven’t you regretted it? Wherever you have pushed aside that nagging inner feeling, hasn’t it come back to haunt you? This is because your intuition is always correct. It always gives you exactly the right answer for you at any given time, and in any given situation.

All the great writers, composers, artists and scientists have developed the habit of listening to their intuition. You have access to the same intuitive powers as the smartest men and women who ever lived.

Perhaps the best method for stimulating your intuition is by learning to practice solitude on a regular basis. Throughout the ages, the greatest thinkers of all time have practiced solitude as a regular part of their work and life. They have taken time to be alone with themselves. They have gone off and sat quietly prior to any situation of importance. Most of the great thinkers of today use solitude as an essential tool in developing the creative insights and intuitions that often have the power to change our lives.

Most people have never practiced solitude, because they wrongly believe that they have no time for it. However, one good idea that comes to you in the silence of solitude can save you a year of hard work. You cannot afford not to practice solitude on a regular basis.

Here�s how you do it.First, fi nd a place to sit where you can be completely alone, in silence, without interruptions. You want to avoid any activities that will disturb your reverie, such as eating, drinking, listening to music and getting telephone calls. You

can sit in your basement, your backyard or on a park bench. The main objective is to be completely alone.

Second, force yourself to sit without moving for 60 minutes. The fi rst 25 or 30 minutes will be excruciatingly diffi cult. You will have an irresistible urge to get up and walk around. But you must persist. You must force yourself to stay still.

After 25 or 30 minutes, a wonderful thing will happen. You will start to feel very good about yourself and your life. You will relax completely. Your mind will become calm and clear. You will feel energy fl owing through your body. The situations and diffi culties of your life will seem to fade away, and you will begin to get tremendous clarity on how to reach your goals.

At the end of your 60 minutes, get up and do exactly what your intuition told you to do. Don’t worry about whether or not people will like it or approve of it. Just take the action, make the commitment, do

the deed. You will fi nd later that this was exactly the right thing to do.

Solitude requires no energy, no effort, no trying at all. It simply requires a state of relaxed awareness where you open your mind to infi nite intelligence. And at the right moment, exactly the right answer will come to you, in exactly the right form.

You can overcome any obstacle, solve any problem or achieve any goal by tapping into the incredible powers of your mind and by trusting your intuition in everything you do. Once you begin to develop and use your intuition, you will become more alert, more aware, smarter and more effective in everything that you do. And your potential will begin to unfold at a speed that you cannot now imagine.

Brian Tracy is the Chairman & CEO of Brian Tracy International. He can be contacted at 858.481.2977, or by email at [email protected].

9july 2003

continued

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Page 10: AutoSuccess Jul03

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CRM/Lead ManagementSoftware: The Need for Training

Robert C. GruenBy Robert C.Gruenmarketing solution

Today, there are literally dozens of software systems available for dealers to track o p p o r t u n i t i e s

and perform customer relationship management (CRM) functions. Most dealerships look to these systems to be the end of the life-long challenge of tracking and follow-up for all ‘ups’. Dealerships may tend to focus on the expense of the software package and not its implementation. This becomes the ‘paperweight’ or ‘doorstop’ syndrome—the PCs purchased become nothing more than fi xtures on the showroom fl oor and are not used for what they were intended.

What can a dealership do to prevent this from happening? For your dealership to succeed in utilizing a CRM/lead management software solution, you must use an outside source of monthly training to enforce, enhance and report utilization directly to management as part of your CRM/lead management initiative.

Call a dealer who installed a system 30 days ago, and follow up with the same dealer six months later. Does that dealership use the system as well as they did initially? Do they use the system at all? Are they logging more opportunities, following up with customers and, most importantly, selling more vehicles?

In discussing some of the challenges that

can occur with CRM, Mark Whitmore & Jonathan Copulsky of Deloitte Consulting state “…many companies were so focused on getting the enabling CRM technology in place that they neglected some of the work required to get their employees on board.

“Among organizations that successfully implemented CRM, a number of common factors emerge. As far as employees are concerned, these include an articulation of ‘what’s in it for me?’, clear communications about what behavioral changes are required and signifi cant investments in employee training (italics added)…

“Organizations that have had great success in implementing CRM are often organizations that always had an intuitive understanding of what gets employees excited about getting up in the morning and going to work” (Marketing Magazine, April 7, 2003).

There are two ways a dealer may implement a training program for their CRM software: In-house and outsource.

1. In-house: The dealer may choose an employee, such as a sales person or manager, to become the ‘super-user’ of the program and make him/her responsible for overseeing everything that happens. This, however, can cause challenges: (a) If the employee is not compensated well enough to cover opportunity costs in addition to regular pay, his/her main focus will be to sell cars

to make ends meet, rather than working hard to make sure everyone is using the software to its maximum potential. (b) Having a fellow employee point out the shortcomings of sales people and/or managers can create resentment and dissension and an atmosphere of discord in the dealership. (c) Even if the ‘super-user’ is adequately compensated, he/she may become expensive ($30-50k a year) and, based on the challenges above, the expense can’t be justifi ed.

2. Outsource: The second way is to use an outside software training company – preferably the software provider themselves. No one knows the software program better than the company providing the software to the dealer.

There are two ways to go about implementing and fi nancing vendor training. First, the cost can be rolled into your monthly software fee. This will guarantee visits and provide a fi xed expense for successful utilization of your program. Second, you can pay as you need training. The drawback with this approach is that when you are trying to lower expenses, the double-edge sword cuts right through the training expense, but causes program utilization and performance to drop drastically.

Monthly software training visits will keep employees motivated and ensure the system doesn’t gather dust. Make sure the vendor’s trainer/consultant checks in and out with your manager and fi lls out a report card on the dealership. Push the trainer/consultant for advice on how to better use the software and for information on what other successful user groups are doing differently. Combine in-store dealer visits with classroom-style sessions. Give your users the best training possible, and you will realize the fruits of your investment by watching motivated, successful employees sell more vehicles.

Robert C. Gruen is the President & CEO of The Higher Gear Group, Inc. He can be contacted at 847.843.6800, or by email at [email protected].

CRM + Training = Success

Page 11: AutoSuccess Jul03

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Page 12: AutoSuccess Jul03

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Keys to Success

sales and training solution Fran TaylorBy Fran Taylor

To achieve success you must start with a plan and a goal, and work toward them every day. Have specifi c

reasons for following through with your plan and completing your goal. For instance, working referrals will result in more sales, resulting in a higher income.

You have to know the benefi ts that will come from making certain changes in your routine. If you stick with your daily plan, you will accomplish your goals.

Do the following to reach your goals:

Lead by example.Never ask your sales people to do something that you aren’t willing to

show them. Make requirements for your team like having a daily appointment or completing all the steps to a sale before penciling a deal. This will result in 100 percent TO. It is easier to make something a requirement if you teach the specifi c benefi ts that will come from it.

Build structurewithin your sales team.You must be exact and effi cient in all areas. If you have areas that need attention, outline a plan, tell your team what must be completed, and hold them accountable. You need the respect of your sales team. With their respect, you will get better results. They will be more apt to follow an outline, program or plan. This will also slow down turnover and boost morale.

Match your advertising dollars to the skill of your sales team. If your team doesn’t follow the steps to selling, you are wasting money. Get this correct and then spend $2,500 a month per sales person. This will increase sales.

Control your inventory.If you want to deliver 100 units and only have 110 in stock, it is diffi cult. Figure out how many used vehicles your sales team will sell per individual. If you have 10 sales people and you want six units per sales person, that is 60 units delivered. It is tough if you only have 70 on the lot ready to go. You must match your inventory with your goals.

Create a positive attitude.When a dealership does things the right way, attitudes get better. Pay your top performers what they are worth. Treat your people like a million dollars, and they will make you two million. Remember, give nothing, get nothing or give a little and get a lot.

The keys to success are easy; you have to make the decision to get help and improve your thinking.

Fran Taylor is the President and CEO of Taylor Techniques, Inc. He can be contacted at 717.566.1566, or by email at [email protected].

Page 13: AutoSuccess Jul03

The New Guy:Orientation & Teamwork

Steve HiattBy Steve Hiattsales and training solution

This is the life of the ‘New Guy’, Bryan Lohrman. In the next three articles, I will take you through the

interview, hiring, training, sales and results of his career. You can compare our processes with yours, and pick up some new ideas for your own store.

Bryan was referred to us by a sales person I know who wanted to see him get into the business. Since she sells over 100 vehicles per month, I thought this was a good referral. Bryan was put through a series of three interviews, plus a fi nal meeting to weed out any misconceptions. The interviews in our store are all a minimum of an hour long, with different managers holding each interview. We have ‘interview packets’ with the questions we want to make sure are asked and spaces to write in our notes. In the interviews, we really dig into the past jobs, likes, dislikes, confl icts and so on, to learn as much about the candidate as possible.

Upon hiring, we gave a strict three-week training schedule to Bryan and a thorough dealership orientation tour. The tour isn’t just an introduction to all the employees, but what sections of the store are for what, where customers park, what employee expectations are, etc. The training schedule covers sales skills training complete with videos, homework, quizzes and role-plays to develop skills. We didn’t stop at an orientation tour either, we had Bryan sit in with fi nance and sales managers, shadow sales people, observe service writers, hang out in parts and even wash cars for a morning. By sitting in with everyone from the lot attendants to the managers and even the receptionist, he got a great idea of our team. In fact, Team Hiatt is the logo and motto for the store, and we mean it. The more a new employee can feel ‘in’ on the organization, the more total teamwork you can expect. It keeps the offi ce, sales, service, parts and fi nance all working together as a cohesive unit, rather than separate entities.

Training also covers setting up short- and long-term follow-up systems with

letters, call scripts and planners. Product knowledge was also important, including driving each vehicle home, videos, test and product presentation role-plays. We split up the training days to rotate between all these areas. Interaction and testing is key to the development of personnel. As Bryan had sold, but not sold cars before, it was important to get him into ‘live’ situations right away and guide him through.

We also role-played writing up a deal, using the credit application (to get more commitments) and negotiated with Bryan. You try to keep it light; but, of course, everyone wants to see each scenario up front, so it takes some time. Working these scenarios up front saves the dealership money, because fewer customers leave or pay too little profi t once the deal is worked.

We put Bryan on the fl oor at the end of April to help end the month. In his fi rst four days working our walk-in customers, Bryan sold two vehicles, 1 new and 1 used. The commissions averaged $550 per vehicle, which is right in line with the money the rest of our staff makes. The fi rst few sales made Bryan and us feel encouraged about the potential success he will have.

At this time, we are focusing on Bryan’s prospecting skills, on the outside and from our service department, so he isn’t relying on ‘ups’ for his whole career. As a management staff, we go to service with him several times a week and ask the service writers who is in for ‘major surgery’. We qualify that as a bill of $400 or more. Then we go back to the showroom and practice role-playing the call to the customer.

By the next issue, we should have some great results to share with you. We also have a lot of continued training, including specifi c closing skills, plus outgoing and incoming phone calls.

Steve Hiatt is the General Sales Manager of Hiatt Pontiac GMC, Hiatt Outlet and Hiatt of Auburn. He can be contacted at 253.312.1834, or by email at [email protected].

1313july 2003

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LES SYSTEM

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TERNATIO

N

AL

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Page 14: AutoSuccess Jul03

autosuccess.biz14

sales and training solution Grant CardoneBy Grant Cardone

Gross profi t is controlled by the desk and only by the desk, not by the sales person.

That is the good news, as it is easier to hold two managers accountable, than to effectively control 22 sales people.

The most consistent shortcoming common to most dealerships is a lack of consistent approaches. The great frustration has been the diffi culties in getting 20 or 30 sales people all doing the same thing. But the reality is if three or four managers aren’t doing the same thing, then you can’t expect the sales people to. If you don’t have consistent processes and controls in place at the desk, you will not get consistent best practices from the sales force.

The solution is to focus on management, particularly the desk. Provide them with simple, consistent, workable processes

that will position the dealership to maximize the gross on every deal.

Answer the following questions:1. What percentage of negotiations is discounted upon fi rst presentation?2. What is the average amount of the discount on this fi rst presentation?3. What percentage of negotiations offer an over allowance on fi rst presentation?4. What is the average over allowance amount?5. What is the average term and rate on the fi rst presentation?6. What is the average downpayment amount on fi rst presentation?7. How many trips does the sales person make in negotiations?8. Are you able to break down the performance per manager and per sales person?9. Would access to this information put you in a better position to control sales profi ts?

Electronic logs provide this information, work as a traffi c log and automatically negotiate each transaction to maximize the gross. It is like having the best negotiator/closer on every deal. Then they automatically show management exactly what is being done on each deal. This type of technology gives the buyer choices between terms, downpayments, monthly payments, trade fi gures and interest rates. This makes your negotiation process less confrontational and more effective.

Then they tally up all the information by manager and sales person. Having this type of information allows you to pinpoint where you could improve front-end profi ts. Management is then able to make the necessary adjustments to improve profi ts. It’s simple when you see that your fi rst presentation offered the buyer one thousand dollars in discount, twelve hundred dollars over allowance and a 72-month term. There was no place to go in that deal, and the opportunity for gross profi t was eliminated.

When this type of information is documented and reviewed with management, on future deals management will consciously start to back off the discount and the over allowance, shorten the term, and work the deal for more money down, driving up gross profi t.

Dealerships using this solution have improved gross profi t, reduced term on contract, reduced discounts and over allowances, and increased downpayments. These logs put management in a position to maximize the gross profi t on every deal by becoming aware of what is happening on all the deals. Looking at one deal or two deals has no value. When you are able to look at 200 deals or 1000 deals, then you get a clear picture of where you can improve your situation.

Get control of the desk by having the right information. It is your business, and the only way you can improve profi ts is to have processes in place that make for consistent delivery to every customer. The only way to effectively make changes necessary to improve yourself is to have the right information.

Grant Cardone of The Cardone Group can be contacted at 800.551.9020, or by email at [email protected].

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Page 15: AutoSuccess Jul03

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feature solution

Employees are a dealership’s most valuable assets, and the better trained they are, the more effi cient and profi table the dealership can become. Dealerships understand the value of a well-trained organization. The challenge faced by many dealerships today is determining the appropriate training for each employee at the right time and fi nding a vendor who can best deliver that training.

Dealership training needs typically develop from one of three scenarios:

Employee turnover.In 2002, sales person turnover rates were 43.5 percent for all dealerships. That creates an overwhelming need for training. For example, when an experienced sales person leaves a dealership, what is the best way to quickly get the new employee up to speed on the computer system?

Falling system utilization.Parts and service employees use time-consuming manual methods to report and track information instead of using the dealership’s computer system—effectively reducing productivity. Typical employee reasons for not using the computer system range from a lack of follow-up training to no training provided on new software. The bottom line is, employees aren’t fully utilizing the technology available to them.

New technology.The dealership launches new or advanced technology, such as a new application or IP telephony and needs guidance on how to best train employees. It is important that the training is customized to the purchased application and technology.

Successful dealerships overcome their training challenges with a number of approaches. Some create their own training programs, while others turn to training experts. Dealerships need training partners who can provide a wide range of services and products.

Selecting a training partner.Selecting a training partner is not diffi cult as long as dealers cross-match specifi c criteria with a potential partner’s core competencies.

A good training partner should:

Utilize computer-based training (CBT) that is real-time. It is important that CBT is on a platform that allows customization to meet a dealer’s specifi c needs. Because a dealership’s work environment is fast paced and driven by customer service demands, employee training must be available 24/7 and during non-workday hours.

Utilize on demand, real-time training that can be accessed any time and any place. This supports a method known as coach training, in which an instructor can speak to employees from numerous dealerships in an e-learning environment. This method allows students to view an application demonstration while the instructor is talking.

Be responsive and easily adapt training programs to handle staff turnover. For example, if a parts counterperson of 10 years leaves and the dealer recruits a new hire, the new employee needs to be productive as quickly as possible. That requires specifi c and focused, real-time training.

Focus on enhanced training to

assure that current employees are fully trained. An effective training program must keep all employees current on dealership applications and technology.

Offer consulting to help dealers track how employees are using or underutilizing software in the dealership environment. This evaluation can ensure the dealership is using software to its fullest capacity and help identify additional training needs.

While dealers can follow these general partner search guidelines, there are more specifi c partner capabilities to consider.

Blended learning. People are not all alike when it comes to learning. Some are quick learners; others need more time. The speed with which they learn is infl uenced by many factors, including the method by which they’re being taught. What makes the blended learning approach so valuable is that it allows employees to learn at their own pace through a method that works best for them (e-learning, classroom training or one-on-one instruction) combined with completing tests.

e-learning centers.In an e-learning environment, employees use self-paced online tutorials or live interaction to learn at their own pace. The technology allows employees to take a course when they want, in the convenience of their home/offi ce or even while traveling. Computer-based training is frequently used in the e-learning environment. e-learning can include professional development courses such

Where to Turn WhenEmployees Need Training

By Becky Hubble

Page 17: AutoSuccess Jul03

17july 2003

as Word, Excel, Internet, and Unix networks. This method can also include management and employee training courses, such as motivational classes and communications instruction on the differences between greeting customers in person and on the telephone.

Learning in a virtual setting.A new e-learning method uses IP telephony technology to create a virtual classroom environment that delivers live classroom training via the Internet. These virtual classroom environments allow students to ask questions and take labs and tests while the instructor watches and teaches. Since classes are available in real time on the Internet, they are very convenient and save the dealership the cost and time of travel.

Curriculum-based training.Curriculum-based training creates a job-specifi c training program based on a dealership’s needs. This option solves a major problem for new managers trying to determine which courses their employees should take. Dealers should be able to look through a current course catalog and select the courses their employees need to receive training in parts, service, sales or other specifi c areas.

Coach training courses.Coach training is unique in the auto industry and is among the most popular approaches offered. This method stresses convenience and allows employees to ask questions through a website or by talking live to an instructor. Because it’s online, it allows people to learn at their own pace. It can also be developed and executed quickly. For example, if a dealership hires fi ve new sales

associates and needs immediate training, a customized coach training session can be set up within a day or two. This session can be taught in real-time, bringing new hires up to speed — faster.

Application-speciÞ c training.Application-specifi c training provides training that is specifi c to the software application being used by the employee. For example, employees learn not only the theory behind accounting, but also how to use the software to accomplish practical tasks. This ensures that employees understand the process and how it is implemented on a practical basis through the software.

Courses grouped bydealership departments and skill level. Having courses listed by dealership departments makes it easier for employees to identify the right training path. Additionally, having these courses divided into beginning, intermediate and advanced levels helps refi ne the search. Curriculum courses offered at various levels and tailored to the needs of the dealership by job function provide the ability to tailor a training program to an employee’s needs or level of knowledge.

Tracking results.Dealers should be able to track employee training via a learning management system (LMS). This system should track valuable information such as:

1. Who took the course? 2. Did they fi nish? When?3. How long did it take them to complete the course?4. How did they do on the exams?

The LMS should also give dealers the ability to view job-specifi c curriculums online and register their employees for training. Job-specifi c pre-assessment tests should be included to give dealers the ability to customize the training for a specifi c job function, or specifi c needs within that job.

Return on investment.Measuring ROI for a training program is never easy. Blended learning and a 24/7 training model helps companies train more associates in less time, saving costs while increasing the number of people trained. In turn, this increases productivity and, more importantly, profi ts. Additionally, dealerships that have implemented e-learning with a blended learning approach have saved thousands of dollars in travel costs and travel time that would take employees away from the offi ce.

The bottom line.Dealerships around the country are recognizing the benefi ts of employee training and development to the overall growth and success of their business. Successful dealerships, large and small, are fi nding that investing time in developing a proper training approach, the right partner and multi-option training programs can signifi cantly decrease costs, boost productivity and drive profi ts.

Becky Hubble is the Director of Training Services at ADP Dealer Services. She can be contacted at 503.402.3234, or by email [email protected].

Page 18: AutoSuccess Jul03

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marketing solution Bob BullockBy Bob Bullock

Dealer IncentivesEverypromotion has a �best before� date.Dealers know by experience that every promotion

has a shelf life. Since every franchise dealer utilizes the same incentives, the key to a successful promotion is to be unique. If you want to stand out from the competition, you need to be doing something they aren’t. You need to promote yourself differently.

Depending on your dealership’s market, you should identify an event, a giveaway or some form of inducement that punches through the clutter. Your promotion should create a sense of urgency, and give the customer the extra push they need to beat a clear path to your door. You’ll need to be inventive. Whatever you decide to use, whether it is a travel promotion, a theme event, a free computer or some type of contest, there are a few things that a successful promotion must have.

Choosing the right incentive.Choose an incentive or promotion that has a perceived value of roughly eight to ten times what you pay for it. Regardless of which incentive you choose, it needs this kind of value to punch through

consumer indifference and generate demand. If you’re running a grand prize contest that doesn’t guarantee everyone walking away with something, this ratio needs to be infl ated proportionately.

The importance oftraining: Getting buy-in from sales.This is easily the most overlooked element of promotions. Introduce the promotional concept in your sales meetings, and be sure that your team understands it down to the smallest detail. Managers should provide suffi cient training in the lead-up to a promotion, so their team is well equipped to introduce a promotion with conviction. Your sales team must understand the promotion better than anyone, so they can communicate its value. Your sales team will educate the customer and ensure a strong return on your investment in the campaign.

Ask the promotional agency you are working with to host a conference call with your team to answer their questions. Free up your sales team to ask the questions they want, and you’re more likely to ensure buy-in and strong execution. To help them understand the promotion, request marketing material from the agency that breaks down the value points of the incentive. It will help

them to deliver the promotion effectively.

It�s in the details.Promotional excellence is found in the details of execution. Here are a few helpful hints for ensuring promotional success:

Quick tips.If an agency doesn’t already provide some sort of promotion success kit, create a list of promotion ‘quick tips’ for your team. Every single person in the dealership who talks to a customer should understand the promotion. They should use these guides to familiarize themselves with the main points of the program and ensure they are positioned to answer customer questions (they may choose to have it on hand when they need it on the lot).

Marketing material.Customers tend to get tunnel vision on the lot. Put your POP marketing material at a line-of-site level. Displays that are placed above this level will be lost in the mix and won’t reinforce the promotion.

Be-back programs.Have cards or inserts on hand that you can give to people who visit the dealership. A reminder of your promotion, that contains some details about the reward, will give you a leg up on the competition. Give them a reason to come back if they’re not going to buy immediately.

The greeting.Strong promotions often provide the springboard your sales team needs to get past the customers’ initial reservations at being approached by the ‘seller’, even when they’re hot to buy a car. Car buying can be perceived as stressful, so your sales teams’ ability to introduce the promotion to an ‘up’ improves the chances of establishing instant rapport. A greeting like, “You’re here about the ‘free _______’ right?”, followed by an explanation about the program, is a great way to begin speaking with a customer. It allows your sales team to shift the conversation naturally towards the customer’s desire to drive away in a new car or truck.

Bob Bullock is the Sales Manager at The Odenza Group. He can be contacted at 604.451.1414, ext. 230, or by email at [email protected].

�� Working with Fran, we are now the largest Chevrolet Dealer in central Georgia. Fran and his people are the best!

George Youman Jr., Youman Chevrolet, Macon, GA�� We are using Fran Taylor�s Prospecting System and made $500,000 more than we have ever made and quit advertising. They are the best training company we have ever used!Jim Shorkey, Courtesy Olds, Jeep, Daewoo, Irwin, PA

�� We are really impressed with how your guys raised our grosses over $500 the Þ rst month. Your prospecting and motivating tactics are the best by far. Our goal was 200 units a month, now it is 250. You are #1!

Larry Bembenick, S & L Automotive, Greenbay, WI

Taylor Techniques, Inc.Taylor Techniques, Inc.

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Page 19: AutoSuccess Jul03

1319july 2003

‘The GoldenRule’ of Selling

sales and training solution Ali BasakinciBy Ali Basakinci

Ali Basakinci is the number one sales person at BMW North Scottsdale in AZ. He has been in the automotive

business for eight years and has been honored by BMW North America each year. Ali is also on the BMW Professional Council. He sells, on the average, 21 cars per month and has a CSI score of 99.6. Ali told AutoSuccess that working hard and treating customers by ‘the golden rule’ are the most important factors to his success.

The most important key to my success as an automotive professional is treating my customers how they want to be treated.

The fi rst step in doing this is during the meet and greet. When my customers come in, I try to build rapport. I don’t act as if they are my best friend and that I have known them for years. Doing this only makes a customer more uncomfortable. You have to earn their trust fi rst. I ask my customers two questions right away; I ask what type of vehicle they are looking for and with what features. I will never try to sell them on something that they don’t really want, and to do this, I have to ask and verify what, specifi cally, they are looking for.

The minute I meet a customer, I am smiling. If you sluggishly get up and drag your feet to meet them, you’ve lost the whole deal. You are there to serve them, never act as if you are doing them a favor by being there. Smile and be courteous.

The second rule I use in treating my customers well is to never assume a sale. I never think they’re sold until they actually say yes to the deal. Assuming is relative to failure; it is another sure way to lose a deal. Always treat your customer with the same amount of respect and enthusiasm throughout the entire presentation. If you think you know they’re sold within the fi rst fi ve or ten minutes of the presentation; you are making a big mistake.

I also pay close attention to my customer’s body language. If I am giving a presentation, and my customer’s eyes begin to glaze over, I know that I have said too much, I end my presentation and move on. Paying attention to body

language isn’t always everything. If a customer crosses their arms while listening to my presentation, it doesn’t always mean that they are losing interest. Sometimes I cross my arms during a conversation and don’t even realize it.

The third thing that I do is, I never treat my customers like they are inferior. I speak to them on an even level. I don’t use technical jargon to sound impressive. I explain everything in words they comprehend and can relate to.

You should know your products 100 percent. Research and study what you sell. You never want to get into a situation where your customer asks a question that you can’t answer. This also gives you confi dence, helps you during your presentation and brings you closer to closing the deal.

The fi nal and most important advice I believe that I could give any sales person is to listen. It is so important. Don’t talk too much; really listen. Listening gives you the power to know exactly what your customers want, need and will buy. If anything, this gives you an edge in selling.

These days 80 percent of my business is repeat and referral business. I do not have to depend on fl oor traffi c coming in or gaining somebody’s trust. My portfolio grows everyday I am there, and it is my investment of several years’ of having been at the same place. When a client sends a friend or family member to me, it is the ultimate compliment, show of trust. Essentially, I run a ‘business within a business’, with an extremely low overhead. Support staff is there for my use, and my time is my investment. Remember, treat your customers as you would want to be treated. No matter what type of vehicles you sell, no matter the price, treat every one of your customers the same. If a customer is spending $8,000, it is no different than a customer spending $30,000. Treat them all the same and with respect. And, you will fi nd yourself becoming a successful automotive professional.

Ali Basakinci is a Sales Person at BMW North Scottsdale. He can be contacted by email [email protected].

Page 20: AutoSuccess Jul03

autosuccess.biz20

Tony Ray MunsonBy Tony Ray Munsonsales and training solution

Attitude Is EverythingHave you ever noticed that you can tell which sales person is going to have a good month based on their

attitude? Some of them are coming off of really bad months, so they fi gure next month will be their month to improve. They start with no sales, like everyone else, but they seem full of enthusiasm and ready to sell. Or, they could be the sales person who just had a huge month and put a lot of energy into that great month. And now, they’re back to zero again and a little tired. They just can’t seem to get motivated this month.

What changed from the last day of the month to the fi rst day of the new month? Was it their attitude or perception? Their skills are the same. Their knowledge is the same. But where’s their enthusiasm?

Every great sales person has a great

attitude. And they enjoy the career they have chosen. They are positive, like the challenge of sales and are very competitive. Having a positive attitude isn’t just walking around telling everyone it’s a beautiful day; it’s having confi dence and knowing that they will sell the next prospect. They know they are a good sales person.

People with great attitudes like to learn. When they feel down they will pick up a motivational book or tape and do some training. They take it upon themselves to change their attitude.

People with bad attitudes are always blaming other people for their problems. With these people: it’s the weather, the war, the inventory, the management, the advertisements, etc. Remember, they are sales people, and others just might buy into their misery.

Here are some points to remember to

help keep a positive attitude:

1. Smile. The more you do it; the easier it gets. Also people will smile back, so it spreads good feelings.2. Don’t hang around people with bad attitudes, and if you have to, try to make them more positive.3. Always look at the positive side of a situation. How many times has something good come out of something bad that has happened? Use these situations as learning experiences.4. Keep learning. The more you learn about the business you are in, the better you will become at it. That will give you more confi dence. 5. Take care of yourself. Exercise, eat right and get enough rest. Make sure you have some ‘me time’ to do what you enjoy.6. Do things for other people. Helping other people can be very rewarding. Doing things for loved ones, friends or even strangers will make you feel better about yourself.7. Remember to laugh. Don’t take life so seriously. You must balance work and play.8. Be thankful for everyday, everything and everyone. Learn to appreciate the gifts you have.

Attitudes are contagious. It all starts from the top; so, dealers and managers have to make sure to understand the importance of their attitude on their employees. People like encouragement and compliments, so give praise when deserved. People are motivated by more than money; they need to know someone cares about them, and that they are important to the team. If they are happy, then maybe they will pass that on to the customers.

Having a great attitude is not easy, but it is a must to be successful. Being up or down, interacting well with others (both customers and coworkers) and being positive about work and life is everyone’s own individual decision.

Tony Ray Munson is the President of Sales Systems International, Inc. He can be contacted at 800.774.0082, or by email at [email protected].

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Page 21: AutoSuccess Jul03

21july 2003

Success With aRespectable VSC Provider

Dan SnydersBy Dan Snydersfi xed operations solution

Choosing the right vehicle service contract (VSC) provider today, can make a big difference

in future success. Selecting a program solely on price is not the best decision. Instead, to increase profi tability and customer satisfaction choose a partner that practices sound underwriting , risk management and claims administration.

Proper underwriting.The key to good underwriting is experience in understanding the losses (claims) over time, as well as knowing when they will occur. With many VSCs extending six or seven years, it is critical to calculate the correct amount of premium initially and then set aside the appropriate amount of funds to pay future claims.

Risk control. Risk control is critical in the development of a VSC program and must be an ongoing activity to ensure success of longevity. In designing a VSC program, it is essential that the company you choose build a product that encourages proper rates for the type of vehicles and coverage being offered. Ultimately, there has to be enough premium to cover the claims frequency by make and model. For on-going risk management, your provider must identify unexpected losses and make required changes to control future losses. If loss issues are not addressed early the more extreme the counter measures will need to be.

Claims management.Experienced, professional claims management means good service, as well as effective and accurate claim’s adjudication. If uncovered claims are paid, or if unreasonable invoices aren’t challenged, everyone will suffer from higher costs and lower service levels.

Get the facts.The best way to assure that your dealership won’t get caught up in the VSC insurance turmoil is to get informed about the program and the

parties involved. Review these six rules to a well-managed program to know the right questions to ask.

Six rules to a well-managed program:

1. Know all the parties in the transaction; understand their performance and fi nancial responsibilities.2. Confi rm that an independent actuary annually certifi es the rates and reserves. 3. Obtain and have your own CPA review a copy of that report. 4. Investigate the status of the insurer, administrator and re-insurer with regulators and rating agencies.5. Interview the claims manager. 6. Use the reasonableness test, “If it seems too good to be true, it is.”

Never forget, the most important trait in a VSC provider is extensive auto and insurance experience and commitment to the industry. It is also important that the insurer is audited annually to verify the company is approved in the states they are doing business and to assure national insurance regulation compliance. Use personal resources by having your CPA review the audited fi nancial statements of the insurer, administrator and re-insurer annually. In addition, review current program reports that outline past and present earning trends, in association to historical and claims experience. The way the program is currently earning, in conjunction with the assumptions of how it will mature, will give you a good idea of whether the insurer is properly underwriting the risk. If the assumptions, concepts and numbers make sense, you have a viable product. Finally, ask to meet the claims manager and get to know him. A claims manager with industry experience, manufacturer knowledge and a good understanding of loss and earnings reports is invaluable to you, the administrator and the insurer.

Dan Snyder is an Automotive Industry Public Relations Representative. He can be contacted at 303.623.1190, ext. 230.

Page 22: AutoSuccess Jul03

autosuccess.biz20222022

The How-To ofMotivation: A Step-By-Step Guide

Pam HollowayBy Pam Hollowaysales and training solution

Do you ever wonder what makes some people work really hard, while others do as little as possible? Why

some need no prodding at all, yet others must be constantly guided and prodded? If you’re a manager, how effective are you at motivating your under-achieving employees?

Motivation is not as diffi cult as you might think. As a manager, you can wield a great deal of infl uence. The key is recognizing that motivation is an individual behavior, not an organizational one, and as such the focus must be on the individual.

Each has different needs, desires, goals and values. Each has past experiences and psychological baggage that infl uence his/her perception of the world and the people around them. All of those things affect how you motivate that person.

Throughout corporate America, because of cost-cutting and effi ciency efforts, the generic approach to motivating employees continues to get approval. That’s unfortunate; there is simply no such thing as a ‘one-size-fi ts-all’ approach to motivation. If you’re serious about getting better production out of your people, the only way is to approach each of them individually. Because people are so different, the motivational strategies you use must be appropriately different, too.

Values and motivation.Motivation is tied closely to values. Values are links to memories and emotions from childhood. They are the qualities, principles and priorities guiding peoples’ decisions. They explain why people do what they do. In short, values are the jet fuel that propels and motivates everyone.

Some examples of work values include:

achievement, autonomy, comfort, prosperity / money, recognition, safety, status and learning.

Work values tend to fall into these three categories:

1. Environmental values. These are things like: comfortable working conditions, a secure job, a variety of tasks and fair compensation. 2. Social values. These include things like: the opportunity for recognition and advancement, managing people, helping others or having close social relationships with co-workers. 3. Self values. These include: a sense of accomplishment, the opportunity to achieve, learn, grow, be creative or make decisions autonomously

Values as outcomes.Another way to think of values is as outcomes. What does that employee most want to achieve? What is their ultimate outcome? If you know the answer, then you know how to motivate them.

For instance, if someone’s highest work values or outcomes are: freedom, accomplishment and continuous learning. Motivate them by giving them a job that will provide the desired outcomes. Superman’s values are: truth, justice and the American way. He’s happy when those are taken care of. You would motivate the two in completely different ways.

Here is a step-by-step process for improving motivation:

1. Recognize individual differences and develop individual strategies. The fi rst step in developing individualized strategies is to determine either what outcomes each employee wants, or learn their values. In other words, what drives the employee? Once you determine that, then you can individualize the rewards. If for example, you determine that someone values recognition, then you can determine ways to ensure they get the recognition to keep them motivated. For example, a two-hour lunch or a gift certifi cate to a restaurant where they can take their family.

continued on page 30

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autosuccess.biz2024

Price or Payment Advertising

Mark WarnerBy Mark Warnermarketing solution

What should you advertise, price or payment? Which one works better? The answer to this question

depends on quite a few variables. If you have more than one competitor who regularly advertises in your local newspaper, you are already in a price

vs. payment competition.

It all starts when one of you begins ordering the lowest price-point ad car you can get. Next, you are advertising behind holdback, a thousand dollars or so, and still wondering if you went low enough to beat the competition. What you haven’t thought about is having enough supply to meet expected

demand. Is the price just on that one stock number, or are you honor-bound to give that price to everyone who walks on your lot? Are you working toward a stair-step incentive, or are you just giving away profi ts to stay with your competitor?

Next, you start working the payments. Most of your customers are payment buyers, so having a low payment is important. You want the lowest payment in the paper, so you start with a low price and go out as far as you can. At 84 months and 3.9 percent APR, you can get a low, low payment, but can anyone actually get that payment? Next, you could go with a lease or even a balloon note, and your competition is still lower. More customers would like to put nothing down, so you say zero down, but you exclude tax, tag and title.

What drives the most traffi c… price or payment? The answer is both. When you can, give potential customers all the information. List a price, purchase payment and a lease payment on every vehicle in your new car display ad. List the equipment and the color. Give them the rebates and fi nance options (abide by regulations). In today’s marketplace, the customer already has access to all of this information online. If that customer has chosen the newspaper to search for a car, having your information in a clear easy to understand format is essential to your success. You don’t have to hide the options. You’ll need to list them.

If you have a competitor who just won’t back off and regularly beats your price, counter their low price with an event-oriented ad that has no prices, just an offer. You might also try a low-price guarantee. It won’t drive traffi c by itself, but it will go a long way for your desk manager to restore front-end gross that has been lost due to runaway price-point competition. The number one thing to remember is, give your customers enough information to help them make a decision. Keep your ads simple and to the point. Give people an offer they can compare to others and a real reason to act now.

Mark Warner is the President of Peachtree Media Group. He can be contacted at 800.967.1306.

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Joe VerdeBy Joe Verde

Some People In SalesMake It All Look So Easy

Wouldn’t it be great if you had been born with a natural talent for selling a lot of

cars? Wouldn’t selling cars be a piece of cake if you had been blessed with more of that charisma so many of the naturals in this business seem to have?

It seems like some sales people were just born with it all. Every time they turn around, there’s another friendly customer, easy deal and big paycheck. Being a natural doesn’t apply just to sales people. Some doctors, teachers or mechanics seem to have that special rhythm that help them glide through their work every day and make it look so easy to the rest of us.

Do you wish you could have been born a natural?

Unfortunately, golden tongue awards, golden healing skills or golden fi x-it skills aren’t passed out at birth to future sales people, doctors or mechanics.

If you are still that ‘8 car guy’ here is something to give you hope. You can learn how to get beyond ‘average’ and become more successful in life and in sales.

There aren’t any born doctors, mechanics or sales people. Everyone is born just little boys and little girls; it’s what you learn and do later in life that makes you who you are.

The people who make it look so easy didn’t have a head start.

Some people just don’t like being average, so they go ahead and do something about it. They get out of their

sales and training solution

comfort zones, start to learn more about things, and they take action when they formerly ‘waited and hoped’. Some see their own potential and get excited, and then, they don’t stop until they get what they want.

Sure, it’s true that some people get lucky and learn some important things earlier than others, and sure, it’s true that some people run into opportunities at just the right time. But don’t kid yourself, because everything the natural in sales does is from something they’ve learned, not what they were born with.

The good news is that you can become a natural, by taking time to learn how to do everything a natural does. For instance, they usually make talking to strangers look easy, and they build rapport, almost instantly. That means, you’ll have to get out of your comfort zone and talk to more people if you ever want to be like that natural. It’s easy, just talk to more people, ask more questions about them and really get involved in the conversation. Once you start, it gets easier and easier every day. Naturals probably have more effective selling skills (learned), better organizational skills (learned), effective goal setting skills (learned) and they have more effective time management skills (learned) than you do. Again, these are just things they’ve learned to do, and you can do the same.

Success isn’t rocket science, and neither is selling. It’s just a process that can be defi ned and that can be learned by anyone who is willing to go to the trouble it takes.

The question isn’t ‘if you can’ … the only question is ‘if you will’. Do it, a year from now, you’ll be glad you did.

Joe Verde is the President of TheJoe Verde Group. He can be contacted at 800.445.6217, or at www.joeverde.com.

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Page 27: AutoSuccess Jul03

27july 2003

Bernard BouleBy Bernard Boule

The Securityof Your Dealership

As a dealer, you should consider and answer the following question: How important is

the security of your dealership to you, the dealer? How important is the security of your dealership to your managers and staff? How important should it be?

Every automobile dealership, large or small, private or public, single or part of a group, should answer these questions with, “Very important.”

The success of your dealership may depend on how seriously you take security. When dealers are asked what attributes to the success of their dealership, their responses are:

a. Dealing honestly with their customers and employeesb. Up-to-date training for sales and management personnelc. Attention to business practices and procedures.

Ideas to increase success through security:

The above are all important and vital to success, however, security should also be on that list. Dealers need to review and revise the security systems and practices that they currently use.

There are many options available for updated security systems. A dealer could conduct employee background checks or drug screenings, install video monitors, install a security system for dealer demo tags, have a secured drop box for customers keys, etc. There are many steps that a dealer can take to ensure the safety and security of their dealership.

Many states have regulations regarding certain aspects of security at the dealership and require them to take certain steps to protect themselves and others. Yet, these regulations aren’t always enough, and dealers must take it upon themselves to implement proper and successful security measures within their dealerships.

Automobile dealerships are large business operations with hundreds of employees selling millions of dollars worth of product each year. This industry is known for high employee turnover, and there are also numerous strangers on

the lots each day. This (along with other variables) should promote heightened security. Dealers should all take steps to make their dealerships safe and secure. They should encourage other dealers to do so as well for the good of the industry as a whole. Don’t wait for something to happen before you decide to secure your dealership. The cost of

implementing adequate security systems and procedures to protect all aspects of the business, while not insignifi cant, is defi nitely worth it.

Bernard Boule is the President of M-Tech, Inc. He can be contacted at 800.642.4522, or by email [email protected].

marketing solution

Page 28: AutoSuccess Jul03

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sales and training solution Mark TewartBy Mark Tewart

The 4 P’s of ManagementThe best performing dealerships manage things and lead people; they do both effectively

and effi ciently. In order to maximize both areas, review these unique ideas to help you maximize the 4 P’s of management: people, product, process and positioning.

People.All good businesses involve good people. People don’t buy vehicles; they buy emotional solutions to problems, that sales people help them feel. People buy from people. And, success depends on recruiting, hiring, training and retaining good people.

Recruiting good people doesn’t mean running the same ad that twenty other dealerships are running every week. Recruiting is an everyday function that should be based upon want, not need. It’s never effective to wait until you need people and then try to get them. Create a written, multi-faceted approach that includes avenues such as newspaper inserts, college recruiting, recruiting of end-of-term military personnel, retail sales people and disenfranchised corporate personnel.

Once you have recruited the right people, it takes daily motivation and education to get them to perform at a high level. It’s hard for good people to become great, but it’s easy for good people to become average. Short, narrow-focused training allows people to grow daily without getting burnt-out on training. Continuous

training leads to enduring education.

Product.The next step in creating a successful dealership is managing product wisely. Although, most consultants say you should adhere to a strict 45-day turn policy, many, small to average size, dealerships have a tough time making this happen because of a lack of personnel and other resources. At many dealerships, the highest percentage of over-aged inventory (causing the biggest strain on cash fl ow and creating the highest wholesale losses) is usually auction purchase vehicles with a $20,000 or higher value. Therefore, many dealerships can create a tiered level turn system based upon dollar value of the vehicle. Higher dollar vehicles should have as low as 15-30 day turn policies. Each lower dollar level could have a somewhat higher day turn. The lower dollar units tend to incur the least wholesale losses and the least drain on cash fl ow. The tiered turn system will utilize your inventory, dollars and personnel.

Process.Good people and good products need good processes to make an effi cient, productive team. Strong, written and well-communicated processes will elevate any company’s talent, no matter the level. All dealerships should create routing procedures that include everybody’s detailed job functions and requirements. The more detail and inspection, the better results you tend to get. Most people, who get results, require less inspection and more pats

on the back. Many managers spend a tremendous amount of time with low producers. Usually the least bang for the buck is spent with people who haven’t made the choice to improve. If people are failing, and they have the talent to succeed, you have to admit that either you hired the wrong person or failed to motivate and educate them. Good processes can help ensure that people, who can succeed, do.

Positioning. Positioning is the art of making your dealership become the most likely choice for any potential customer. Most dealerships think only in terms of advertising and tend to change their message and approach from week to week. Positioning takes a much deeper approach. Before a dealership can advertise, you must fi rst determine your ‘specifi c defi ning proposition’, what makes your dealership the most unique and best choice for customers. Tell your story, tell it well and tell it often. Be specifi c with your message.

When dealerships consider their marketing plan, advertising is usually their only weapon. Advertising is one-step lead generation, which is always the most costly form. Two- and three-step lead generation only asks for potential customers to raise their hand to show that they are interested and don’t require them to buy right then, therefore, requiring two or three steps.

Two- and three-step lead generation can start to be created by asking yourself one simple question, “What companies currently do business with companies I am seeking for business?” By identifying parallel businesses you can begin to set up affi liate customer-sharing programs that create warm leads rather than expensive cold leads.

Just a few, simple actions in each of the 4 P’s of management can assist any dealership in elevating to a higher level.

Mark Tewart is the President of Tewart Enterprises. He can be contacted at 888.283.9278, or by email at [email protected].

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Page 29: AutoSuccess Jul03

Scott JosephBy Scott Joseph

How to Make Your Direct MailAdvertising Two Times More Successful!

profi t solution

Automotive dealers everywhere are raving about the promotion that sells everyone the

most cars and makes the most money!

My name is Scott Joseph, President of J&L Marketing, Inc., and do I have a promotion for you!

Of the nearly fi fty different promotions, letters, and mail forms I have created, only one stands out among them as the defi nitive marketing sales event of them all. (It also happens to be the cheapest!)

Over the last 12 months, this promotion has produced incredible results for 322 dealerships. These stores averaged a 2.96% response rate and, more importantly, they average 38 vehicles sold for every 10,000 pieces of mail sent! Imagine that, a promotion that works not once, twice, or three times – but has actually produced 322 times an average response rate of 2.96% and sells an average of 38 cars for every 10,000 pieces of mail!

I’m talking about our now famous J&L Marketing Previous Customer Events. The dealerships that immersed themselves fully in our proprietary mindset and methodology stated this promotion was the “defi ning experience” that transformed their business performance and wealth from that day forward.

These previous customer sales events taught people that their customer database is the most important asset they have. They saw fi rst-hand that if the database is accurate and effectively marketed, it generates more sales and makes them more money than any other advertising approach has ever done or will ever do.

After years of extensive research on auto dealership customer databases, here is what I do know…

• 70% of customers own more than one car • Over 50% of those customers bought their second and third car from a competitor (regardless of how high the dealers satisfaction rating is).• Previous customer events pull twice the amount of traffi c of any other event – ANY!• NADA says your closing percentage will skyrocket 50% when a previous customer comes back on your lot to look for another car.• These customers buy more often and they pay you more profi t because they trust you more and agree with the way you sell cars.

You cannot afford to delay this decision any more.

Contrary to what a few people think, your previous customers will not and do not automatically come back to you for their second or third car. In fact, many times they never return to your store. The numbers don’t lie.

The best source of future business you have is right in your own database. It is the best source of quality traffi c you can advertise to. You must lead these people. You must give them a reason to return to your showroom and buy right now.

J&L Marketing makes it easy. We have pioneered the effort to get more dealers to aggressively market to their previous customers. We are experts at cleaning and updating your list to make it accurate. And after thousands of hours researching dealership direct mail promotions with our Response Analysis database (the only software program able to test and measure every aspect of your

promotion) we have the information and experience necessary to show you the most effective way to drive that quality traffi c to your showroom and motivate them to buy now.

Make the decision right now to do something for your dealership, your sales people, your managers, and yourself that will produce the “defi ning experience” our other customers have already encountered - the type of experience that will transform your business performance and wealth from this day forward.

Call my offi ce and ask for Lisa Wilson now at 800.346.9117 and we will do a 10-point analysis of your database absolutely free. It’s that easy. As soon as we receive your call, we will go to work so you will know exactly how accurate your most important asset (your previous customer database) is.

You have absolutely nothing to lose! After you fi nd out how many duplicates, misspellings, and out-of-date addresses you have in your database, (absolutely free) then you decide whether or not you want us to clean it up for you, and if you want to participate in the same type of promotion as those other 322 successful dealerships. You’ll be spending less advertising money and you’ll be selling a lot more vehicles than ever.

To receive a FREE analysis of your database and more information on these incredible promotions, please call my ofÞ ce at 800.346.9117 from 8:00am to 6:00pm EST and ask forLisa Wilson.

www.jandlmarketing.com

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Page 30: AutoSuccess Jul03

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sales tips with David Thomas David ThomasBy David Thomas

Power Prospecting = 100 DealsGetting back to basics in prospecting could net you 100 sales by year-end. Set a goal - 100 units

delivered by you, the sales associate, by the end of the year.

Here is how to do it:

Prospect by phone, fax, email, mail or in person, every day, 9:00 � 11:00am. Make it your goal to contact at least 15 quality prospects each day. If you set appointments with just one-third of them, you now have good traffi c fl ow. If you close one-third of your appointments, you will sell 20 units a month and hit your goal of 100 by year-end.

Become a master at networking. Be social, and start conversations that will work their way around to cars. People love to talk about their cars. Start with your friends, relatives, neighbors, PTA groups, etc. How about your dealership’s orphan owners? Ask your sales manager for a list or source. Look at those who bought three to four years ago. They are probably in the trade cycle now.

Increase your closing ratioby bettering your walk-around,test drive and turnover technique. Use a manager or closer to the fullest extent allowed to close every deal. TO.TO.TO.TO.TO. Allow someone else to be the last word. Buddy up to another good sales person to act as your closer, and you can help with theirs. When they

come in to assist, stand back, listen and be supportive. An assist is as good as a goal.

Follow-up & follow-up. Never quit the follow-up game, or you will lose. Drop a line to your ‘be-backs’. Stay in touch with your customer base.

At my store, I encourage to 1. be polite, and 2. be aggressive. Yes, these do go together. We are here to facilitate and motivate a transaction, and we do this in a fun, polite and energetic fashion. You have to ask for the sale, and you’ll get more ‘yeses’ when they like you.

David Thomas is the Owner of West Texas Nissan in Odessa, TX. He can be contacted at 214.384.9100, or by email at [email protected].

continued from pg. 22

The simple way to discover what someone values is to ask. “In terms of your work, what are the most important things to you?” Simple, but not necessarily effective. First, because you’re the boss, most employees may not feel comfortable having such a sensitive conversation with you at fi rst. Second, since outcomes are linked to values, they are locked in the subconscious; and the subconscious is not normally accessible through a direct question. However, there are several low-tech surveys and tools available that you can use to elicit values.

2. Match people to jobs that enable them to use their natural strengths and talents.When people are properly matched to jobs that provide them with an opportunity to regularly use their natural strengths and talents, they will be naturally motivated. Think about it - the things that you do the best are typically the things you love to do. Which might be, solving problems, helping people, making sales or maintaining order. When you’re doing something that you love to do, you don’t need any external motivation. Typically, you don’t need much training either. When you implement a ‘right person/right job’ initiative, it gives you motivated people and lowers your expenses.

3. Determine what kind of behavior you want and articulate it clearly.Things like good performance and working hard are often talked about, but are not specifi cally defi ned. You assume everyone knows. However, someone may be highly motivated, but motivated to do something completely different from what the organization wants or needs. Think of the people you know who work hard but are not effective. They think they’re doing the right thing. You can’t fault the employee if you haven’t specifi cally defi ned what you want.

Describe the goal, the outcome. Be specifi c about how the job is to be performed. What will the successful outcome look like? What will the numbers be? Most people are visual, so, if you can, provide an example, a sample or a model. If you’re not explicit in your expectations or if you micro-manage, you could drastically undermine and sabotage your own efforts and demoralize your employees.

4. Link organizational desired outcomes to individual desired outcomes.Perhaps, the toughest part of the motivation process is to synchronize the organization’s desired outcomes with individual desired outcomes. How

do you accomplish what you need to accomplish as an organization, while at the same time make sure the employees get what they need?

There’s actually a pretty easy way to do that. If your company has mission, vision and values statements, extract the core values from them. Match that to the values possessed by your employees. Then, share the commonalities with the employees in one-to-one conversations. Explain how the fi rm and the person are both working for the same goals.

Although it seems like a daunting task, motivating all your employees is not as diffi cult as you might imagine. If you’ve done a good job hiring people whose core values match those of the organization, you’re already half way there. If you’ve done a good job at matching people to work that they are naturally inclined to do, then you’re three-quarters there. The rest is simply the result of how well you perform as a manager to motivate them.

Pam Holloway is the Co-founder and CEO of AboutPeople Training and Consulting Firm. She can be contacted by email at [email protected].

Page 31: AutoSuccess Jul03

©2003 ADP, Inc. – Dealer Services Group / ADP is a registered trademark of ADP of North America, Inc.

ADP helps you get the most from your investment in hardware and software solutions so you can focus on your customers, generate more sales and count bigger profi ts. ADP Client Services is committed to making your team smarter, faster, and more effi cient by offering multiple options for the service and support you need to run your dealership.

We offer e-Learning courses that can help you become an expert with ADP applications, and provide convenient e-Support for all your technical support needs. We also have a full line of Forms Building services backed by as little as a 48 hour turnaround as well as PC Desktop Support to help you focus on selling cars instead of fi xing PC’s.

Logon to www.DealerSuite.com today for more information on these and other products and solutions or simply call us at 888.424.6342.

At ADP, we didn’t set out to provide an endless variety of client services,

we set out to help our customers succeed.

Page 32: AutoSuccess Jul03

You already havewhat you need to run the next-generation CRM.

The next generation Sales & Management CRM is here. It’s totally Web-based, so you access it from any computer, anytime. It’s real-time management that can make a real difference in sales and your business. Call Mark Strong at 800-996-1952 for all the details.

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