AutoSuccess Jun05

Read this month�s and previous issues online at www.AutoSuccess.biz

.biz.biz.biz

How to Add toYour Response Rate

Tony Cantrell

BEFORE YOU SPENDANOTHER DOLLAR ON THENEWSPAPER CLASSIFIEDS,

READ THIS.

©2005 AutoTrader.com is a trademark of TPI Holdings, Inc. and is used under license.

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Only 7% of newspaper readersare looking for a used car.A lot of people advertise in the newspaper simply

because they have for years. But when you really look at the

number of newspaper readers who

are actually looking for a car, it’s

not very impressive. In fact,

newspaper circulation continues

to decline, and the Internet has

surpassed the newspaper as the number-one source

people use to fi nd a car. At AutoTrader.com, virtually all

of the nine million monthly visitors are looking to buy a

car within the next 60 days. Also, the majority of

AutoTrader.com users are looking to

buy within 25 miles of their home. When

you consider all of this, you’ll realize that

you can list your car in the newspaper,

or you can sell it on AutoTrader.com.

45722_AT5_246.indd 1 4/6/05 5:51:20 PM

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INSI

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AutoSuccess Magazine is published monthly at 3411 Pinnacle Gardens Drive, Louisville, Kentucky, 40245; 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, 3411 Pinnacle Gardens Drive, Louisville, Kentucky 40245.

3411 Pinnacle Gardens Drive Louisville, Kentucky 40245

! Toll Free: 877.818.6620 " Facsimile: 502.588.3170

Patrick Luck, Editor & Publisher• [email protected]

Susan Givens, Vice President• [email protected]

Courtney Hill-Paris, Sales-improvement Strategist• [email protected]

Brian Ankney, Sales-improvement Strategist• [email protected]

Thomas Williams, Creative Director• [email protected]

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DavidKain

Always Ensure Compliance TonyDupaquier

Ofß ine Strategies to Build Online TrafÞ c PaulAccinno

TomGegax10 Directives for Developing Via Delegation

PattiWoodThe Secret of the Perfect Handshake

KirkManzoFull Price is a Fair Price

JeffFishelPromote Events Designed to Drive TrafÞ c to Your Dealership and Brand Yourself in Order to Improve Your Image in the Marketplace

A Simple Formula for Internet Success

BrianTracyIncreasing Your Earning Potential

ChrisHansonThe Key to Success, Part 2Follow Up Your Unsold Customers

SeanWolfi ngtonWhat is Leadership

StacyDiPiazzaLeaving Consumer Information Unsecuredis Like Leaving Cash Out in the Open

AnthonyHall

Promoting ChangesRealigning Staff Can Breathe New Life Into your Dealership

MarkTewartHow to Increase Sales by 20 PercentWithout Spending More on Advertising

RayVelasquezSchomp Automotive IncreasesInternet Sales by 300 Vehicles in 2004

BrianAnkney

Do You Care ScottJoseph

God Bless America

Tools for Developing Lifelong Customer Relationships DanVogel

Demo for Dollars

I Want to Think About It

CarolMartin

Zachariah 2:13“Be still before the Lord.”

Even in the fastest wheel that is turning, if you look at the center where the axle is found, there is no movement. And even in the busiest life we may dwell alone with God in eternal stillness.

Lamentations 5;19“Thou, O Lord, remainest forever; thy throne from generation to generation.”

TonyCantrellHow to Add to Your Response Rate

www.autosuccess.biz8

A Simple Formula for Internet Success

DavidKainsts ms ls fi s sf

leadership solution

With all the Internet products and services available for dealers in the market today, one could assume success is really all

about choosing the right one. Even the best product or service is dependent on the focus and commitment of the dealership. I wanted to use this column to line out a formula that will consistently deliver results when used by hard working and smart dealers.

1. Decide who is ultimately responsibleThis is probably the most important step. The Internet is still widely misunderstood as a marketing tool for automobile dealers, and it needs an internal champion to shepherd it through the formative stages. Preferably this is the general manager or general sales manager at the dealership because they have to weave the marketing and Internet sales process into the existing marketing and sales framework.

2. Outline your Internet marketing and sales vision With the cost of operating an Internet department, it is best to line out your vision and goals. Do you want to increase sales and market share? Do you want to grow owner loyalty? Do you want to be number one in close rate, sales or profi ts? Do you want to be known as the best Internet retailer in your town, region or nation? Whatever your vision is, I recommend that it be more than “just sell more cars and trucks.” Think of the tale of the three bricklayers – when asked what they were doing one said “laying a brick,” the next said “building another wall,” while the third one said “building a cathedral.” Your Internet team should know what they are building.

3. Line out your strategyYour strategy is the heavy lifting and requires you to settle on what steps are necessary to achieve your vision. The elements of an effective Internet strategy include the following items:

A. StructureWhen deciding on the right structure, think of what will allow for the best consistency and scalability? There are many types of structures used by dealerships today and, for the most part, all of them can deliver good results. The most common structures are:

1. Combination Internet and fl oor sales person – works fi ne in a small operation with few leads but the tendency is to favor the fl oor traffi c and not offer the best service to the Internet customer, which could cause them to go elsewhere.

2. Internet sales person or Internet sales manager – the most common approach used in dealerships today. The benefi t is full-time focus on the Internet department without taking fl oor ups, and lead handling is consistent. This is diffi cult to scale, and turnover stops productivity immediately.

3. Internet with a call center – this is a growing trend and born from the BDC (Business Development Center) strategy of “call” specialists setting appointments and turning them over to Internet “sales” specialists. This is the most scaleable but requires a very effective manager to ensure consistent results.

B. PersonnelDepending on your structure, the next decision is what type of personnel is required and how should they be compensated? Consider hiring people who are sales oriented who can warm up people fast, know the product and processes and greet each day thinking of the opportunities to sell a vehicle. This is a tough environment and requires optimists who can handle rejection and get back up and keep asking for the appointment and the sale. Compensation depends on the structure but I recommend a pay plan that focuses on “kept appointments” and the actual vehicle sale.

C. ProcessWhen deciding on the lead handling process, it is important to think like the customer.

Consider your own experience when you use the Internet. Was it easy? Was it quick? Did you feel confi dent? When you interacted with the agents, were they knowledgeable and able to provide you with the information you needed? Was the experience something you want to tell your friends about? If you can build your process around these questions, you will undoubtedly be moving in the right direction.

D. Marketing and lead generatingOnce you are set on the structure personnel and process, it is time to generate some leads. There are essentially four sources:

1. Lead aggregators or providers (Dealix, Autobytel, AutoUSA, etc.) – quickest source with large volume opportunity

2. Online classifi eds (AutoTrader.com, Cars.com, etc.) – primarily generate phone calls for used vehicles

3. Manufacturer leads (FordDirect.com, GMBuyPower, etc.) – solid leads and typically excellent value

4. Dealer Web site – best closing rate but volumes are typically low

A. ToolsThe basics: Dedicated PCs for each Internet department employee, high-speed Internet connection and a lead management tool. Without these in place and being utilized effectively you will never reach your full potential.

B. MetricsYou must measure the following to keep on track.

Weekly: leads, appointments kept, sales and gross.Monthly: all above plus measure the lead sources by close rate, cost per lead, cost per vehicle sold and return on investment.

It’s not simple but if you follow the plan and adjust to the challenges you can achieve your Internet vision.

David Kain is the automotive Internet training specialist at Kain Automotive Inc. He can be contacted at 800.385.0095, or by e-mail at [email protected], or visit www.kainautomotive.com.

Consider hiring people who are sales oriented who can warm up people fast, know the product and processes and greet each day thinking of the opportunities to sella vehicle.

Always Ensure Compliance

TonyDupaquiersts ms ls fi s sf

f&i solution

To ensure compliance, a business manager must disclose the base payment and how that base payment was calculated. What

determines a base payment is the amount fi nanced, the APR and the term used. The customer must also know that it is possible to take delivery of the vehicle with the base payment. Utilizing specifi c wording ensures this is disclosed properly: “Mr/Mrs Customer, this is the amount you are fi nancing today, and your base payment is XX,XXX, for XX months, at XX APR, and that will deliver your new vehicle today.”

It is imperative to explain the base payment to each customer. If the customer is unaware of what the base payment is, then the payment was “packed,” a practice that has been deemed unfair and deceptive in many states. Even if a state does not have a specifi c packing law, many attorney generals are utilizing unfair and deceptive trade practice laws to prosecute and fi ne dealers and business managers.

The customer must also know that the optional products are not required to secure fi nancing. A recommended solution is to have the customer initial the base payment so there is no miscommunication of this fact.

Another major concern is that the product disclosed on the menu is the same product the customer receives. If a business manager discloses a 5-year, 75,000-mile exclusionary policy with a $100 deductible, then the customer must receive a contract with the exact same conditions.

Bundling the products is another way of packing. Bundling is when a product is sold in conjunction with another product. The product that gets bundled the most is maintenance agreements. If a business manager sells maintenance agreements, then

the product must be sold on its own.

The menu is a great way to ensure legal compliance and it must be correct and consistent. If there is ever a legal issue in the business offi ce, the investigators will look at the pattern of behavior and the paperwork.

These are two areas that should save you, not burn you.

Tony Dupaquier is the director of F&I training for American Financial & Automotive Services Inc. He can be contacted at 866.856.6754, or by e-mail [email protected].

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june 2005 9

The menu is a great way to ensure legal compliance and it must be correct and consistent.


ScottJoseph

Do You Care

sts ms ls fi s sf

marketing solution

How often do you preach that the little things make a huge difference to the way you and your dealership are perceived? My

guess is most dealers or business owners probably preach it every day.

The reality is that customers decide not to buy and leave – they don’t bother to schedule an appointment when talking with you on the phone – they decide to stop doing business with you – for reasons other than price or product.

Almost 70 percent of the time, customers take their business elsewhere because of perceived indifference. The fact is most customers leave because they think you do not care. Do you? Clearly you do, it’s just that the customer thinks you don’t. You know what, perception is everything!

If you want to really maximize the profi t potential of your advertising then begin with creating a perceived difference.

The fi rst step to creating a perceived difference is to pay attention to the words we use. Many of the words we use everyday convey we don’t care. Most of time we use certain words or phrases on the telephone – thus killing any chance of persuading the prospect to visit the showroom. I wonder how many more vehicles we would sell by just eliminating certain words or phrases.

Here are some phrases for you to immediately eliminate from your store’s vocabulary:

• “I’m sorry”• “He’s in a meeting”• “May I take a message?• “Can I ask who’s calling?”

As I sat down to write this editorial I realized my own company is guilty of a few. Let’s all work together and ban them right now!

Let’s look at why.

�I�m sorry�Now clearly you do use that phrase if you’ve messed up. But please do not use it in this scenario:

The caller calls and asks to speak to John Salesman. John’s not in so you hear… “I’m sorry, John’s not here right now.”

Why not handle the call like this: “Thank you for calling us, John’s not here right now… Then add… maybe in the meantime there’s someway I can help.”

Check the change in perception there. It may seem small but small things can have a huge impact on results. Instead of the caller talking with an apologetic little sole who’s simply giving out information, the caller’s now talking with someone who is prepared to help.

�Can I take a message?�Replace it with “maybe there’s some way I can help.” Again the difference is small but critically important.

By forcing everyone to say, “maybe there’s some way I can help” you’re forcing people (in a nice way, of course) to get much more involved. So all of a sudden, your receptionist, your front line people or whoever answers the phone has to get involved in helping the caller solve the problem.

The effect of that is immense. Imagine the dramatic skill growth that will come for your prime telephone answerers from forcing them to use that phrase.

�He�s in a meeting�Do you know what most customers think when they hear that phrase? “Look … when will you people get serious about customers and stop having meetings all the time.”

Use this phrase instead, “Thanks for calling, John’s with someone right now” … and then of course, you add on the end, “Maybe there’s some way I can help.”

You see, “with someone” doesn’t evoke the same negative vibes as “he’s in a meeting.” Being with someone is OK, being in a meeting is never more important that a customer. The good news is you can always be with yourself! I’ll explain in a moment.

�May I ask who�s calling?�YOU WILL NEVER, EVER HEAR THIS INTERROGATION OF CALLERS AT J&L MARKETING FROM THIS DAY FORWARD. Why? Because it doesn’t matter who’s on the line. Given that we’re not “with someone”, you have every right to speak with the person you called. So why should we interrogate you?

The fact you are a customer or a potential customer is enough. There is no way you should put barriers between you and the people you serve.

Does that mean you should take every call? No, because you would never get any work done. First, few of us take time out to think strategically – we’re too busy fi ghting fi res. So for the next few weeks try this.

Allocate a part of your day to be simply “with you”, and instruct everyone else that you’re going to be “with yourself (someone)” for a certain amount of hours.

Then when a call comes in for you, it will get handled like this: “Thanks for calling, John is with someone right now, he tells me he will be free at 10:30. In the meantime, maybe there’s some way I can help.”

You know what; the simple truth is that they probably can help enormously. It’s all part of empowering people. Try theses ideas they really do work.

Next month’s article will discuss more specifi c words and phrases your sales staff can use to increase your percentage of appointments and sell more cars. What will that do for you? The perception of your store from customers, prospects and in your community will dramatically improve and your advertising investment will start to pay you much bigger rewards!

Scott Joseph is the president of J&L Marketing Inc. He can be contacted at 866.429.6846, or by e-mail at [email protected].

You know what; the simple truth is that they probably can help enormously. It�s all part of empowering people.


PaulAccinno

Ofß ine Strategies to Build Online TrafÞ c

sts ms ls fi s sf

sales and training solution

Recently much has been said about Search Engine Optimization (SEO). This has proven to

be an effective means of building online traffi c. However, SEO should not be the sole method of marketing your Web site. There are still a lot of shoppers that process offl ine information. According to J.D. Power & Associates”…traditional offl ine advertising is an extremely effective way to drive traffi c to a Web site”. All you are really trying to do is establish “top of mind” awareness for your Web site address so the customer pops your URL in the browser fi rst and you do not have to rely solely on search engines to fi nd your Web site.

But we are getting ahead of ourselves, because the fi rst step in developing any strategy for building Web traffi c is to establish an Internet Marketing Budget. Like any budget it should be based on potential ROI. There are several ways to determine an Internet Marketing budget. If you are looking to sell 50 cars a month on the Internet, and your average advertising cost per new and used vehicle retailed is $300, then your monthly budget should be no more than $15,000 per month (which should include the cost of your Web site and any third party lead services to which you subscribe). Another method would be to calculate your budget as a percentage of gross profi t. Again, using 50 units as an example with an average gross per vehicle retailed of $1500 and an advertising to gross ratio of 25 percent, your budget would be $18,750 per month. Still another method could be if your Internet sales are 10 percent of your business and you want to grow it to 15 percent, simply dedicate 15 percent of your ad budget to the Internet. Regardless of how you want to calculate it, and what different accepted industry guides you use, you need to establish a Internet Marketing Budget before you can successfully build Web traffi c!

Television

While television may seem cost prohibitive for your ad budget, it is still the most effi cient

means of reaching the largest number of people for the lowest cost per impression. Remember, all you are trying to do is market your URL. Five or ten second spots are all that is necessary …”Need a Car or Truck? Visit valuemotors.com”. Short commercials, run a lot of times, will establish good reach and frequency and provide excellent market coverage. Most TV and cable stations will produce this simple spot at no charge when you place your buy.

Radio

This medium provides mass reach and can be used quite effi ciently to market your URL through news, weather and sports sponsorships…”Today’s news is brought to you by valuemotors.com…we never close!”

Newspaper

To keep costs reasonable you could run “Business Card” size ads in various sections of the newspaper...classifi ed, sports, and business etc. Create them in reverse (black background, white type) and they’ll stand out and only include your URL and a very brief message like, Need a Car or Truck? Visit www.valuemotors.com.

Outdoor

This is an excellent medium for automotive Internet advertising. The customer is in their car, seeing your URL everyday. Half the battle is simply getting them to remember your Web address and outdoor provides the visual support in a dramatic way. It can also be used quite effectively in conjunction

with radio. (Customer sees and hears your ad simultaneously with proper frequency). Again, don’t load the board up with copy. The main element needs to be your URL. Add your brand logos and some short copy. That’s it. Remember, it needs to be immediately readable from a distance at 60 MPH!

Direct Mail

With this medium you can target specifi c areas of your market, both geographically and demographically, i.e. adults 25-34 within a 20 mile radius of your store. Even though the Internet covers virtually everywhere, your best prospects (better closing ratios, higher grosses, more repeat business etc) are still going to come from your local trading area. It doesn’t have to be an expensive piece; a postcard with your URL and a brief message is all it takes. Start by sending it to all your existing customers.

If you do not want to establish an Internet Marketing Budget, then at least make sure your URL is included PROMINENTLY in your existing advertising. In TV make sure you “say” your URL as well as video. In radio be sure to repeat your URL just as you would your phone number. In print, you can create a boarder that simply repeats your URL without using up a lot of space. In Outdoor, make sure your URL can be read at a distance at 60 MPH and in direct mail, again make sure it is prominent. Be sure to discuss with your advertising agency that you want your URL prominent in all your advertising. Web addresses have a way of disappearing from your advertising if you’re not paying attention!

Regardless of which medium or combination of media you choose (a multi-media approach is always more effective), you need to go offl ine to drive traffi c online. Keep one thing in mind...with the advent of the Internet; there are no more customers...just prospects!

Paul Accinno is president and CEO of WorldDealer, Inc. He can be contacted at 866.429.6826, or by e-mail [email protected].

Regardless of which medium or combination of media you choose (a multi-media approach is always more effective), you need to go ofß ine to drive trafÞ c online.

The concept seems so foreign to many dealerships today. The pendulum appears to have swung so far in favor of the consumer

that most sales people and desk managers concede defeat before the battle even begins.

The person you need to sell on Full Price being a Fair Price is really who? That’s right, it’s you. How can you convince your sales person, let alone the customer, to pay full asking price if in your mind you have already made a concession? Perhaps some of you believe it is not even possible to sell a vehicle at the full asking price unless that customer just fell off a turnip truck.

The best way to gauge whether you have the courage and intestinal fortitude to actually do this is to just ask yourself, “How many Full List deals did you deliver in the past 30 days? 60 days? 90 days?” If the answer is one or none to any of the three time frames, you may need to sell yourself fi rst.

In the early 1900s there was an Italian mathematician and economist named Vilfredo Pareto. He studied business, society and the environment in search of an explanation for the natural distribution of results. His fi ndings lead to the ratio that bears his name, The Pareto Principle. Most of you are more familiar with the ratio itself: 80/20.

The 80/20 rule simply states that a small number of people often impact the majority of the results. There are examples and nuances to this principle that are too numerous to mention here. For our discussion, reality dictates that while the majority of your customers will behave similarly (80 percent) the minority (20 percent) differ in their approach and outcome of purchasing a new vehicle.

Within that 20 percent there is both good news and bad news. Approximately half of them (10 percent) will be a delight, the other half (10 percent), well, they are probably why your local bartender knows you by name as you recall your tales of woe.

One in 10 should pay you all the money. If this is not happening, there is only one reasonable conclusion: you and/or your sales person never asked them to pay full price. So if you are not even seeing one in 20 (four to fi ve per 100) full pop deals, it’s simply because you are not asking. Bear in mind

Full Price is a Fair Price

KirkManzo

these are absolute minimums. Hopefully you can improve to one in fi ve full-price sales.

In order to accomplish this, use a payment & down-payment conversation. This will yield better results during your negotiations compared with a trade-difference negotiation. Whether you choose a traditional four-square format or some other proposal presentation, the focus needs to be on payment and down payment to maximize your profi t opportunity.

Deals go from the desk to the customer. The sales person will then present the proposal and wait for the customer to respond (react) to our fi gures thus starting the negotiation. This contrasts what many sales people do today by taking an offer to the desk to begin negotiations. Remember all deals start at the desk.

Start the fi rst pencil as follows: Market value (MSRP) less rebates (as they apply), use two trade fi gures ($500 spread) higher fi gure to be ACV less $500-750+, payoff to bank, 20 percent down payment, payment options at 48 months two fi gures with a $10 spread. Use an average interest rate for your area to start. (10 percent for this example)

Your sales person will then ask for a check. “Mr./Mrs. Customer just go ahead and write me a check for $6,097, make that out to Thompson Motors and I will get your paperwork started.”

Then shut up and wait for their response. Realize some will actually surprise you and write the check for $6,097. If they do not, well that’s something we will discuss in next month’s article.

Go make something happen!

Kirk Manzo is the general manager at Ziegler Supersystems. He can be contacted at 800.858.6903, or by e-mail at [email protected].

sts ms ls fi s sf


Example:A. Market value $31,987

Rebate $1,500

Adjusted Sale price $30,487

B. Trade in $3,461 up to $3,963

C. Payoff $2,750

D. Down payment $6,097 (20 percent)

E. 48 Months $587-597

june 2005 13

BEST PRACTICES

to all of this year�s attendees, speakers

and vendors who helped make the

THANKTHANKYOUYOU

A Great

SUCCESS!SUCCESS!

Promote Events Designed to Drive TrafÞ c to Your Dealership and Brand Yourself in Order to Improve Your Image in the Marketplace

JeffFishelsts ms ls fi s sf

marketing solution

Car shoppers want the best deal now, and whoever gives them the best deal now will get their business. During event

promotions, the customers must also act now or they will lose out. This sense of urgency is why event promoting sells cars.

So what happens when two dealers in the same market stage their events on the same weekend? What if their offers are similar and they’re selling identical makes of vehicles? In this instance, the dealer who has branded his or her dealership best will win.

William Bernbach states: “In advertising, not to be different is virtually suicidal.”

To determine your dealership’s brand differences, start by asking yourself these questions:

• If I had to pick only one thing I want the customers in my market to know about my dealership, what would it be?

• What do I do better than the competitors in my marketplace?

• What can I offer customers in my market that my competitors can’t?

• What do I offer my customers that translate into real benefi ts for them?

• What makes me special in this market?

• Who is my target market and what would my competitors not want my target market to know about me?

Your answers to these questions will be the fi rst steps in determining your brand.

Once you have determined and established your brand, you must then advertise it. This may include using targeted tag-lines, uniform graphics, unique print design, custom logos and perhaps a jingle (last month’s article) all within your radio, TV, Internet and print media.

Plan your advertising months in advance. Planning ahead utilizes your entire budget most effectively, allowing you to select your best event promotional days, weeks and months of the year. Moreover, planning ahead saves you up to 40 percent in your annual media expenditures allowing you more budget for your branding campaigns.

Combining your monthly brand advertising with your event promotions is effective because the one consists of the urgent deals offered to your marketplace during each weekly event promotion. And the other gives prospective customers the added reasons they need in selecting your store over your rival’s.

Jeff Fishel is the national sales director for FishMarketingOnline.net. He can be contacted at 866.827.6246, or by e-mail at jÞ [email protected].


The Secret ofthe Perfect Handshake

PattiWoodsts ms ls fi s sf

leadership solution

If you know the rules, you give a fi rm three-to-fi ve pump handshake in greeting while standing approximately 16

inches from the person. In business you greet someone in this manner and then step back to a minimum of two-and-a-half feet distance, with no other touch in the critical fi rst four minutes of the interaction. A handshake allows you to form a fi rst impression of that person or, if you have met them before, to form an impression of them for that interaction.

In Western cultures, handshaking is used to greet another person and “seal” a contract or promise. The handshake is also the quickest, most effective way to establish rapport with another person. It takes an average of three hours of continuous interaction to develop the same level of rapport that you get with a handshake.

We shake hands to show we hold no weapon. It is thought to have started with the Roman arm clasp. One man would reach out his right hand, his weapon hand, and clasp just below the elbow of the man he was greeting. With this greeting neither person could yield a weapon easily. Medieval knights created the shaking part of the handshake because they knew that other knights hid daggers up in their sleeves and that shaking would dislodge any hidden weapons. So basically handshakes are weapon checks.

Although the handshake is rapidly becoming an internationally accepted business greeting, Americans shake hands more often than the people of other cultures. The handshake can serve as an important verb in your body language vocabulary. Few things can create such an effective fi rst impression as an easily given, gracious handshake. Based on research, here is the best way in American culture to have the perfect handshake.

The Perfect Handshake• Rise, if seated. That rule used to apply to men only; now women should rise, as well. If you remain seated when someone is introduced to you, the communication of personal indifference is unmistakable, not to mention offensive. The only approved exception to rising to shake hands is if you are eating. If that is the case, you can wait to shake hands until after you are done.

• Walk up to the person with confi dence. Keep your head level and your hands at your side. Be sure to keep your hands out of your pockets. Research indicates that we don’t trust people with hands in their pockets. Make sure your right hand is free to shake hands. Always shift any purses, briefcases, papers, beverages or cell phones to your left hand before you begin the greeting.

• Smile briefl y. Don’t overdo it. If you smile too long or too much, you are perceived as submissive. An over-extended smile can create negative impressions, such as “overeager,” “easily manipulated” or “not intelligent.” Women need to take special care not to over-extend the smile as it can reduce personal power and can even be misinterpreted as a sexual come on.

• Make eye contact. There is a substantial amount of research showing that good eye contact increases feelings of trust. Don’t stare, but don’t look at your shoes. Making eye contact as you approach lets the person know you want to interact. Men need to extend the eye contact for at least three seconds without blinking or looking away as they shake hands. Women need to be careful of holding eye contact for more than three to fi ve seconds at a time with men they have

june 2005 15

continued on page 34

A Þ rm handshake that shows strength and vigor with appropriate eye contact length and completeness of grip is related to a favorable Þ rst impression.


10 Directives forDeveloping Via Delegation

TomGegaxsts ms ls fi s sf


Leaders who feel they lack the time to think strategically don’t use the full potential of their employees. A manager must know

that effective delegation not only adds to his or her employees’ development, but frees him or her for more profi table business pursuits.

Delegating can be summed up in three words: let ’er rip! It develops employees like nothing else. Hand over anything your people can do:

• better than you;• quicker than you;• at less cost than you;• that will add to their development;• that will free you for more important pursuits.

Under-delegation is rampant. Many people who manage by the seat of their pants wear their resistance to parceling out tasks like a badge of honor. Others conceal their reluctance behind a wall of bravado. There are myriad excuses for under-delegating. There’s the I-can-do-it-better-myself Syndrome, which, even if it’s true, doesn’t change the fact that your time would be better spent elsewhere. There’s the classic I-can-save-time-doing-it-myself Syndrome. It might take a while to train someone to do a repetitive task, but once it’s learned you’re home free. Do the math - delegating just one additional assignment each week to seven people who report to you crosses 30 assignments off your to-do list every month. Another malady is the Somebody-else-might-make-a-mistake Syndrome. Mistakes will be made, but that’s exactly how people develop the experience needed to free you up for more meaningful activities. Other conditions that cause under-delegation include the Fear-of-giving-the-wrong-impression Syndrome, marked by concern that you’ll appear to be carrying less than your own weight. In fact, respect deepens when you place your trust in others and focus on big-picture thinking. There’s also the I-feel-threatened Syndrome - fear of being shown up by a subordinate. That leads to a mediocrity mindset and an idle, cynical staff whose poor performance refl ects poorly on

you. Last, there’s the I-might-lose-control Syndrome. No problem; people love working for a control freak in an offi ce gulag.

Good leaders occasionally use overt non-delegation to deliver a message. I saw this fi rst-hand while I led Tires Plus. Take the Monday morning Eric Randa, our loss-prevention czar, and Wayne Shimer stopped by a Wisconsin Tires Plus store. They walked past soda cans and other weekend detritus spotting the lawn on their way inside only to discover the store manager and two associates standing around. Now, understand that we viewed cleanliness as next to godliness, which set us apart in an industry synonymous with “grease monkey” and “industrial waste.” Wayne, a vice president and part owner, walked back outside and, for all to see, picked up the trash. “You never saw Wayne have to pick up trash at that store again,” recalled Eric.

Nobody ever accused me of under-delegating. “Tom was a dedicated delegator,” Wayne recalled. “He forced me to be better by making me do things I didn’t think I could do. The downside was that Tom was so strong at it he would over-delegate. His logic was that he never knew how far he could challenge you to fi nd your endpoint, and Tom wanted to fi nd that endpoint. If your optimum capacity was 98, he wanted you at 97.9.”

I do tend to overload people. But that’s so they learn to unload lesser priorities. Still, there’s a fi ne line. You have to trust that your people will yell “Uncle!” One time, Wayne mentioned the time he had 135 items on his Goals Activity Report. He couldn’t get much help because everyone underneath him already had full plates. “I just became adept at fi guring out what Tom really wanted done,” Wayne said. “What were the $10 items, what were the $5 items, what were the $1 items? I took the $10 items and worked the heck out of ’em. If he hit me on an uncompleted $5 item he’d grill me some, but he never brought up the $1 items. His motto is, ‘Be tough, not rough.’ I’m convinced he walked out of the building at night smiling and thinking, ‘Let’s see how he handles this one.’”

Tough-not-rough delegation benefi ts everyone. Before plopping assignments on desks, do your delegation due diligence.

Top 10 delegation directives:1. Transfer ownership. Be clear: “Here you go. This baby’s all yours now.”

2. Tell why. An employee who understands why he or she is being asked to handle a task is more likely to execute it thoroughly.

3. Get the wheels turning. For complex projects, help the delegatee develop an action plan by asking open-ended questions like “How do you see this unfolding?” and “What roadblocks do you anticipate, and how will you overcome them?”

4. Set deadlines. Mutually agree on a completion date and time. Otherwise, the task may sink to the bottom of the delegatee’s priority list.

5. Ask for a recap. It’s dangerous to assume the delegatee perfectly understands the assignment. Always double-check: “To make sure I communicated properly, please explain what you’re planning to do and why.” The answer may surprise you.

6. Monitor (but don’t smother). The point is liberation, so don’t micromanage unless the delegatee is untested or timing is critical. If he or she starts down the wrong path, say something like, “That might work, but have you considered going in this direction? . . . What do you think that could yield and why?”

7. No take-backs. Don’t retract an assignment at the fi rst sign of trouble. That can kill confi dence. Setbacks are learning opportunities, so patiently coach the delegatee back on track.

8. Play to a delegatee’s strong suit. Tailor assignments to people’s strengths. Don’t saddle a big-picture thinker with a detail-intensive project.

9. Don’t duplicate. Assign specifi c duties to specifi c people, with zero overlap. If there are two people involved, make it clear who’s in charge.

10. Distribute evenly. Up-and-comers need challenges, too. Avoid the temptation to overload your stars.

Tom Gegax is founder and chairman emeritus of Tires Plus and founder of Gegax Management Systems. He can be reached at 866.210.2832, or by e-mail at [email protected].

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TonyCantrellfs feature solution

Simple additions to your direct mail campaigns can easily increase your response rates and lower your cost per sale. Every store wants more bodies in the showroom as a result of their marketing efforts. Direct mail is one of the quickest and most cost effective means to do this. It can be measured, so continuous improvement is possible. Several methods and many new tools have made results possible that dwarf those only a couple years ago.

One such improvement is Internal Voice Response (IVR). IVR is an automated telephony system that allows potential customers to be pre-qualifi ed for an auto loan based on the factors selected by the dealership. The system will ask questions such as monthly household income, desired monthly payment and job time. Some systems are voice responsive and will understand and move forward based on the customer’s voice answers. Other systems require that the customer respond using the touch-tone keys on the phone. Bilingual systems make this convenience available to your Spanish-speaking customers as well. Next the system will ask for permission to pull the customer’s credit so you can have access to the maximum amount of information before the customer visits the lot. When the customer has completed the process, the dealership is notifi ed immediately by fax or email. Advanced IVR systems have a web interface that allows users to go in to the call records, listen to them, assign them to salespeople and even tag leads with their status in the sales process.

Another innovation that improves the effectiveness of direct mail is Voice Mail Broadcasting (VMB). A VMB tool will get

your potential customers excited and prompt them to look for your invitation in the mail. Messages up to thirty seconds long can be left to convey to your customers the exciting opportunity that is soon to arrive in their mailbox. Messages can be used to condition the customer to call the dealership to set an appointment the day the invitation arrives so they can be sure to receive the special rates and/or pricing the invitation makes available to them. Some dealers and managers like to personally invite the customer to come in and meet them face-to-face so they can receive the special gift that is waiting for them.

Promotional gifts have been used for sometime, and remain effective when properly presented in the voicemail and direct mail offers. Promotional gifts also remain an inexpensive and effective way to increase response rates and to promote the carnival like atmosphere and excitement level that can lead to buying frenzies. The gift will also bring in the buyer who is riding the fence or just deciding to enter the market. This justifi es the visit and if nothing else this customer will often feel obligated to give you a chance to earn his or her business

in exchange for the free gift. Many sales the following week and month come from what some would call, “Gift Grabbers.” NADA says that 72 percent of people buy on impulse. Gifts can range in price from $.25 to $100 and more. How much is your next sale worth? Adding gifts to your campaign will bring more potential customers in the door. The Vertis Customer Focus® 2005:

Automotive study, reveals that the number one reason for many consumers to buy a new car is simply because they want one. For 36 percent of the new car purchasers, desire for a new automobile will lead them to make a purchase within the next 12 months. The study also revealed that 43 percent of adults who plan to purchase a new vehicle responded to direct mail by visiting the dealer in person, 28 percent visited the sender’s Web site and 14 percent called an 800 number. Since direct mail from an automotive dealer can help educate consumers on future purchases, it is also an effective medium to increase future dealership traffi c.

Promotional Insurance is used for exciting and incredible giveaways. Large giveaways will increase response rates of direct mail campaigns by bringing in the buyer who feels lucky. How many of your customers pay for lottery tickets? When a car or a large cash prize is given away, insurance can be purchased for as little as 6 percent of the cash value. Insurance is available up to $1,000,000. Insuring a percentage of a car or cash giveaway gets you the same attention and publicity with less risk and little additional expense. Take the time to fi nd out if promotional insurance is right for you.

The effectiveness of Web surveys has grown exponentially over the past couple of years.

How to Add toYour Response Rate

... the number one reason for many consumers to buy a new car is simply because they want one.

june 2005 19

Web surveys are very similar to internal voice response programs but instead of the phone, they use the computer. Customers are directed to a Web site that will ask the questions needed to get the customer pre-qualifi ed. Questions about their wants and needs give the dealership the ammunition to deliver these customers when they arrive for their scheduled appointments. A multiple-choice format allows the customer to design their own close by sharing the types of incentives and discounts that motivate them to make a buying decision. When the survey is completed the customer is informed that they have won a prize and they are directed to the dealership Web site or showroom fl oor. Upon completion, the results are immediately faxed or emailed to the dealership for follow-up. These are the hottest leads and should be called within 15 minutes with a deal structured the way the customer said they like to buy.

There are a number of ways to compliment a direct mail campaign. Economies of scale can be realized by fi nding a company that is large enough to handle every step of the process. Direct mail will increase the sales, profi ts, and most importantly, bottom line.

When considering direct mail, keep in mind these useful statistics provided by the Vertis Customer Focus® 2005: Automotive

study.

Top Reasons Why Adults Are Buying

New Cars

• 8 percent of the new car purchasers said they are motivated to purchase a new car because of their current auto’s mechanical problems.

• 11 percent of new car purchasers are

planning on buying a new vehicle within the next 12 months because they need one for work, while 4 percent need one because they have a new driver in the family and 3 percent can afford a better car.

• Only 5 percent of new car purchasers are planning on making a purchase within the next 12 months based on lower prices, lower interest/fi nancing or price incentives.

Men More Likely to Purchase a New Car.

• 24 percent of single Generation Y (1977-1994) men stated they plan to purchase a new vehicle within the next 12 months.

• In comparison, 16 percent of Generation Y women have plans to purchase a new vehicle within the next 12 months.

• 20 percent of men with a household income of $75,000+ and some college education have plans to purchase a new automobile within the next 12 months.

• Similarly, 15 percent of women with a household income of $50,000+ and some college education reported they plan to purchase a new automobile within the next 12 months.

Main Incentives Motivating Adults to Visit

a Dealership.

• 32 percent of Generation X (1965-1976) adults were motivated to visit a dealership based on price incentives; fi ve percent more than the average adult.

• Generation X adults are 9 percent more likely than total adults to be motivated by a special fi nancing offer,

while Generation Y adults are six percent more likely than total adults to be motivated by the same factor.

• Of the Younger Baby Boomers (1956-1964) surveyed, 21 percent said a rebate offer motivates them to visit a dealer when shopping for an automobile, compared to 16 percent of total adults.

• Generation Y adults are 5 percent more likely than total adults to be motivated by a special trade-in offer.

What Makes Auto Loan Applicants Open

Direct Mail?

• 66 percent of direct mail readers who plan to apply for an auto loan said they are more likely to open a package that looks interesting.

• Of the direct mail readers who have plans to apply for an auto loan, 64 percent are more likely to open a piece based on the timing of its arrival.

• For 60 percent of direct mail readers who plan to apply for an auto loan, having their name on the front of the envelope will infl uence their decision to open.

• 57 percent of direct mail readers who plan to apply for an auto loan are more likely than total adults to open packages that contain a special offer or discount.

Tony Cantrell is the president and CEO of Automotive Consulting Co. He can be contacted at 800.901.2859, or by e-mail at [email protected].


Increasing Your Earning Potential

BrianTracy

Throughout most of human history, we have been accustomed to evolution, or the gradual changing and progressing of events

in a straight line. Sometimes the process of change was faster and sometimes it was slower, but it almost always seemed to be progressive, from one step to the other, allowing you some opportunities for planning, predicting and changing.

Today, however, the rate of change is not only faster than ever before, but it is discontinuous. It is taking place in a variety of unconnected areas and affecting each of us in a variety of unexpected ways. Changes in information processing technologies are happening separately from changes in medicine, changes in transportation, changes in education, changes in politics and changes in global competition. Changes in family formation and relationships are happening separately from the rise and fall of new businesses and industries in different parts of the country. And if anything, this rate of accelerated, discontinuous change is increasing. As a result, most of us are already suffering from what Alvin Toffl er once called, “future shock.”

You can’t do very much about the enormity of these changes, but the one thing that you can do is to think seriously about yourself and your basic need for security and stability. In no area is this more important than in the areas of job security and fi nancial security. You must give special attention to your ability to make a good living and provide for yourself in the months and years ahead.

Above all, to position yourself for tomorrow, you must think continuously and seriously about your work today, your earning ability, and the work that you will be doing one, three, and fi ve years from today. You must plan to achieve your own fi nancial security, no matter what happens.

Charles Kettering said that you should give a lot of thought to the future because that is where you are going to spend the rest of your life. One of the greatest mistakes that people can make, and the one with the worst long-term consequences, is to think only about the present and give very little thought to what might happen in the months and years ahead.

Imagine what your job will look like fi ve years from today. Since knowledge in your

fi eld is probably doubling every fi ve years, this means that fully 20 percent of your knowledge and your ability in your fi eld is becoming obsolete each year. Ask yourself, “What parts of my knowledge, skills and work are becoming obsolete? What am I doing today that is different than what I was doing one year ago and two years ago?” What are you likely to be doing one year, two years, three years, four years and fi ve years from today? What knowledge and skills will you need and how will you acquire them? What is your plan for your economic and fi nancial future?

We are now in the knowledge age. Today, the chief factors of production are knowledge and the ability to apply that knowledge to achieving results for other people. Your earning ability today is largely dependent upon your knowledge, skill and your ability to combine that knowledge and skill in such a way that you contribute value for which customers are going to pay.

The Law of Three says that you must contribute three dollars of profi t for every dollar that you wish to earn in salary. It costs a company approximately double your salary to employ you in terms of space, benefi ts, supervision, and investment in furniture, fi xtures, and other resources. For a company to hire you, they have to make a profi t on what they pay you. Therefore, you must contribute value greatly in excess of the amount you earn in order to stay employed. To put it another way, your earning ability must be considerably greater than the amount you are receiving, or you will fi nd yourself looking for another job.

To position yourself for tomorrow, here is one of the most important rules you will ever learn: “The future belongs to the competent.” The future belongs to those men and women who are very good at what they do. Pat Riley, in his book The Winner Within, wrote that, “If you are not committed to getting better at what you are doing, you are bound to get worse.” To phrase it another way, anything less than a commitment to excellent performance on your part is an unconscious acceptance of mediocrity. It used to be that you needed to be excellent to rise above the competition in your industry. Today, you must be excellent even to keep your job in your industry.

Excellence, quality, and value are absolutely essential elements of any product or service, and of the work of any person. Your earning

ability is largely determined by the perception of excellence, quality, and value that others have of you and what you do. The market only pays excellent rewards for excellent performance. It pays average rewards for average performance, and it pays below average rewards or unemployment for below average performance. Customers today want the very most and the very best for the very least amount of money, and on the best terms. Only the individuals and companies that provide absolutely excellent products and services at absolutely excellent prices will survive. It’s not personal. It’s just the way our economy works.

To earn more, you must learn more. You are maxed out today at your current level of knowledge and skill. However much you are earning at this moment is the maximum you can earn without learning and practicing something new and different.

And here’s the rub. Your accumulated knowledge and experience is becoming obsolete bit by bit, day by day. The knowledge in your fi eld is doubling every three to fi ve years. That means that your knowledge must double every three to fi ve years just for you to stay even.

The solution to the dilemma of unavoidable change and restructuring is continuous self-development. Your personal knowledge and your ability to apply that knowledge are your most valuable assets. To stay on top of your world, you must continually add to your knowledge and your ability. You must continually build up your mental assets if you want to enjoy a continuous return on your investment. And only by building on your current assets do you stop them from deteriorating.

By engaging in continuous self-improvement, you can put yourself behind the wheel of your own life. By dedicating yourself to enhancing your earning ability, you will automatically be engaging in the continuous process of personal development. By learning more, you prepare yourself to earn more. You position yourself for tomorrow by developing the knowledge and skills that you need to be a valuable and productive part of our economy, no matter which direction it goes.

Brian Tracy is the chairman and CEO of Brian Tracy International. He can be contacted at 866.300.9881, or by e-mail at [email protected].

sts ms ls fi s sf



The Key to Success, Part 2Follow Up Your Unsold Customers

ChrisHansonsts ms ls fi s sf


There is way too much competition out there and we just can’t afford to do a mediocre job. There are

not as many deals being lost to price as most think. In fact, one of the biggest reasons is that 90 percent of people who do not buy are never even contacted again. Ninety percent. People out there walking around looking to buy a car and sales people aren’t even calling them back. I think part of the challenge is we are taught that you had better sell them today because you’re not going to get them back in. Don’t get me wrong: We need to do everything right when they’re in the dealership. Everything. Don’t skip any steps, but once I’ve done everything I can and they do leave, I’m getting them back in the dealership. Because when they do come back in, they’re buying. I know the next few days after the customer leaves the dealership are critical. In fact, 57 percent of people will buy a vehicle in the next four days after stopping into the fi rst dealership. Ninety percent will buy a vehicle within a week.

Statistically, we have around a 67 percent chance of closing a be-back, so it’s easy to see that it’s defi nitely worth following

up with these people. Let’s look at what tools we have to follow up with and when done right, how we can get our 67 percent even higher.

First of all, when we follow up, we need to make an impression on prospects, and it had better be great. No more winging it, make a plan and take action with it. Let’s look at everything we can do to make that week really count. Be-Back CDThe fi rst thing I do before they leave is give them my Be-Back CD. My Be-Back CD is an audio CD where my manager introduces me and then I talk about myself and the dealership between customer testimonials backing up everything I’ve said. If you’ve done your job and treated them with integrity, the CD will be powerful. When I give my Be-Back CD to someone and that person comes back into the dealership, my stats show me that I have around a 95 percent chance of closing them. (If you e-mail me, I will send you an audio fi le and a text version of my Be-Back CD.)

Thank You NoteSend every prospect a thanks-for-stopping-in note. As soon as the customer walks out the door, I send them a thank you note. (E-mail me and I’ll send you a copy of mine.)

Video E-mailUps: As soon as the customer leaves without buying a vehicle, I send them a video e-mail. Phone Ups: I always ask for e-mails and send them a video e-mail. I’ll also send them a walk-around of the vehicle they were asking about. Internet Leads: What a great way to introduce yourself. It’s a powerful way to make a connection when your competition is just typing and calling. I also send video walk-arounds of the vehicle they are asking about. The best thing about the video e-mails that I use is they don’t have to download the video. It plays instantly. (E-mail me for more details and I’ll send you one, as well.)

Phone CallWe defi nitely have to utilize the phone, as well. When you call a prospect, always give them NEW information. If you’re struggling with your phone calls, e-mail me and I can give you some ideas.

Prove it with Auto Magazine ArticlesUse Motor Trend, Car & Driver and other magazines to prove what your talking about. I have copies of articles in fi le folders that are labeled: Durango, Caravan, etc. When a customer leaves, I pull out a copy and write across it with a black marker: I thought you might be interested in this article. I put my name on it and send it in the mail. This article proves what I told them and also says that they are making a good decision. When it’s in print, it’s fact.

Developing a ProcessInvest in your own subscription to AutoSuccess Magazine. You’ll fi nd ways for getting better every month. Please e-mail me if you would like information on creating a smooth follow-up system that utilizes all the sales tools we have available to us and puts them in an easy-to-follow, step-by-step process.

If you’re ready to give yourself a raise and take your career to the next level, make a plan, follow up with your next unsold customer and get ready to write up your next deal.

Chris Hanson with Hibbing Chrysler can be contacted at 800.901.2862, or bye-mail at [email protected].

june 2005 23

What is Leadership

SeanWolfi ngtonsts ms ls fi s sf

leadership solution

I believe that leadership is best described as the ability to achieve extraordinary results with ordinary people. If we can rally a team

of ordinary people and make them feel like they are part of an extraordinary team with extraordinary goals, they just might live up to our expectations. Leaders have a passion for their people, a passion for their vision and a passion for their goals. Leaders roll up their sleeves and jump right in. They’re creative, entrepreneurial and always out in front. Take a look at the difference between a leader and a manager and ask yourself, honestly, where your strengths lie.

Leader ManagerInnovates AdministratesDevelops MaintainsCounts on trust Counts on controlRelies on people Relies on systemGives credit Seeks recognition

The good news is that you can grow as a leader, if you aren’t one already. You may not have been born a leader, but if you have a mentor and know the attributes of leadership, you can become one. Leadership is not something bestowed upon you or something that comes with a promotion or a title. It’s not about being the boss or about power or salary.

Leadership is about . . . • Giving• Listening• Caring• Vision• Results• Dedication• Compassion• Motivating• Faith and trust• Hands-on• Effecting change• Persistence• Patience• Smart work• Leaving a legacy

Perhaps most important, leadership is about setting the pace and leading by example. Nothing undermines a leader’s

credibility faster than an action that smacks of hypocrisy, so get out there and walk the walk. Great leaders are able to arouse positive emotions in the members of their team, but as leaders, we must also be prepared to be alone, to be different and

to be ahead of our time. I urge you to learn more about true leadership today.

Sean WolÞ ngton is the owner of BZResults.com. He can be contacted at 866.802.5753, or by e-mail atswolÞ [email protected].

StaceyDiPiazza

Leaving Consumer Information Unsecuredis Like Leaving Cash Out in the Open

sts ms ls fi s sf

leadership solution

“Think of every unsecured piece of consumer information as a pile of cash waiting for someone

to take it. It’s like leaving $11,000 in cash sitting out in the open. If you think about it that way you’ll be more sensitive to its treatment.” The speaker was Jonathan Larabee, the controller of Manchester Honda in Manchester, Conn. The $11,000 fi gure wasn’t a random one. Jonathan pointed it out as the per-incident penalty for violating the safeguards rule portion of the Gramm-Leach-Bliley Act. Their dealership has strived to exceed the requirements of this 2003 legislation and create what they feel as a benchmark program.

“Anyone who comes in to purchase a vehicle will convey information during the process, whether or not they buy,” he reminded me. “Once the consumer decides to engage in this process, all their information goes into a fi le or ‘jacket’. Our business managers are much more in-tune with the safeguard rules, but along the way so many people get involved. Anybody who has exposure to the sales process and the sensitive information it requires has to be trained to recognize the importance of security. All people have a responsibility to keep it secure.”

Tips for setting up and reÞ ning a secure

document system.

• Most importantly, have a written information security program that outlines policies and procedures and make sure everyone in the dealership is familiar with it and signs off on it.

• Train the sales consultants on the importance of not leaving customer information out in the open, especially fi nancing information, including income levels, social security numbers and driver’s license numbers.

• Keep all information together. Have a process to verify that all required documents are in place at the time of delivery. Not only will this help with

effi ciency, but will identify anything that might be fl oating around. Shred any extraneous paperwork generated in the process.

• Lock it up. At the end of the day all jackets should go into a locked fi reproof fi le cabinet, no matter where they are in the sales process. But that’s just the end of the day. Most of your exposure will occur during business hours. This means locking down many offi ces. At Manchester Honda, their accounting, DMV and business offi ces are locked at all times, no exceptions.

• In the past, it was common for sales consultants to keep copies of transactions in or on their desks for follow-up purposes. You need to establish a place where this basic information is easily available to each sales consultant, but not at his or her work station.

• Think about internal security. It’s not just the public that should concern you. In fact, your greatest exposure might be from within. This applies to security of employee information from other employees as well as security of consumer information from unauthorized employees. Because of this, the people at Manchester Honda lock down all of their old archived

fi les. In addition, the annual purging of fi les is now disposed of properly, i.e. shredded, not recycled or put in the dumpster.

• Opt for cradle-to-grave concept. “One of our dilemmas was always trying to determine what’s ‘sensitive” and what’s not. To keep it simple for everyone, we started treating any document that contains a customer’s name, address, and phone number as sensitive,” Jonathan told me. “This may seem aggressive but it’s easy to understand. In this light, even repair orders and parts invoices could be considered as sensitive. When excess copies of things like this are generated we shred them. In fact, we now shred almost all paper waste. We have lockable shredding bins in the sales and service areas that are accessible to all associates. We don’t want information sitting in a dumpster so some agent or even a news crew can fi nd our customers’ names, addresses. We’re not taking the risk.”

Jonathan summarized things this way: “The law’s there. The penalties are there. We all have to take this issue seriously. Just get a program in place, train everyone who touches consumer information, secure and destroy what you need to and then you can get back to focusing on your primary business: selling and servicing cars. Once you get a program in place and it becomes second nature, and then you can get back to other pressing issues.”

Manchester Honda has been serving the Greater Hartford area since 1964 offering a comprehensive line of Honda cars and trucks, motorcycles, ATVs, power equipment, marine products, auto and motorcycle parts & accessories. For more information, see www.manhonda.com.

Stacy DiPiazza is the owner of Infoshred LLC. She can be contacted at 866.826.8434, or by e-mail at [email protected], or visit www.infoshred.com.


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AnthonyHall

I Want to Think About It

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Sales people hear this put-off so many times that you’d think we’d be masters at dealing with it. Most of us still stammer around and

then say something like, “Well, why don’t I give you a call in a couple of days?’

When we get back to the showroom fl oor, we tell our manager that everything looks good but the prospect just needs to think about it before making a decision. When our manager asks what they want to think about, we either stand there like a dummy and say “I’m not sure,” or our creative juices begin to fl ow and we make up a Pulitzer prize-winning story.

Auto-ResponseThere is a better way to deal with this put-off. We need to develop an auto-response that kicks into gear the minute we hear the dreaded “I want to think about it.”

What’s an auto-response? It’s the words that automatically come out of your mouth in response to a stimulus from another person. For example, whenever a retail clerk says, “Hi. Can I help you? your auto-response is, “No thanks. Just looking.”

Before we develop a couple of auto-responses, let’s look at where the I-want-to-think-about-it put-off comes from. There are fi ve primary sources;

1. For some reason, the prospect is unsure about the vehicle.

2. The prospect is concerned about the price or unsure about value.

3. The prospect is a procrastinator and

never makes a fast decision.4. The prospect has no intention of buying

from you and wants you to disappear. (They don’t like or are uncomfortable with you.)

5. Someone else’s approval is needed before moving ahead.

You should have uncovered reason fi ve during the fact-fi nding step (“Who else, besides yourself, will be involved in making the fi nal decision?”), and there is little you can do about reason four except to T.O. to a manager or fellow sales person. All you can do for reason three is to fi nd out how much time they need and let them have it. If you push too hard at this point, reason four may come into play.

So that leaves us with reason one and two as candidates for which to develop an auto-response.

The underlying methodology for dealing with this put-off is to get the prospect to tell you what they want to think about. While this sounds simple, you can’t just blurt out, “Waddaya want to think about?” and expect to get to the real answer. Remember, you want to get them talking about their concerns.

Develop Your Auto-ResponseAs with handling an objection, the fi rst thing out of your mouth should be a neutral acknowledgment of the prospect’s concern. I’ve trained myself to use the phrase, “I can appreciate how you feel.” I usually embellish it a bit to show empathy for the prospect so it comes out as, “I can appreciate how you feel. If I was in your shoes, I’d probably want to

think about it as well, this is a big decision.”

That’s the fi rst part of the auto-response. The second part depends upon what the concerns might be. If I think the stumbling block is reason one (vehicle) I might ask, “Tell me do you have any concerns about the vehicle?” or “Is it the vehicle that’s holding you back?”

If the prospect says, “Frankly, yes,” then I may ask, “What is the specifi c concern?” and ask them to put it on a scale of one to 10. One, you would not own it, 10 being you would absolutely own it now, where would the concern fall?” In this way, I could overcome the concern with either reselling the benefi ts or select a different vehicle.

If I think the stumbling block is reason two (price) I might ask, “Tell me, are you concerned about the cost?”

If the prospect answers “Well, yes.” Then I know I’m dealing with a price objection. I will reassure the prospect that “Price is the dealership’s specialty and we won’t let price stand in the way of helping you own a car.”

You get the idea.

Be Prepared.There is absolutely no doubt that you’re going to hear “I want to think about it” many times during your sales career so prepare for it now. Write out your response on a three-by-fi ve card and carry it around in your pocket until you memorize it and it becomes your auto-response to one of the world’s most popular put-offs.

Anthony Hall is a training consultant at Ziegler Supersystems. He can be contacted at 800.610.9047, or by e-mail at [email protected].

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june 2005 27

MarkTewart

How to Increase Sales by 20 PercentWithout Spending More for Advertising

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The managers in your dealership must have a written job description with clearly defi ned responsibilities and

expectations.

Having specifi c goals for the department is required. Daily action plans for selling, training, appointments, one-on-one coaching, save-a deal meetings, deal structuring, follow-up, etc will increase sales by 20 percent without spending more for advertising.

If you read biographies of successful people or businesses, one common thread always seems to be a strong sense of passion fueled by big goals. When you write specifi c goals down on paper, you are committing yourself mentally, emotionally and physically to the attainment of those goals. Do your dealership and your employees set the long- and short-term goals? As the dealer, have you committed your dreams to paper for the month, six months, a year, fi ve years, 10 years, 20 years? Speed of the boss, speed of the crew, if you make the commitment, your employees will, too.

Once you have set your goals, plan your specifi c actions to reach them. Write a specifi c action plan for when to train, what to train on, who will conduct the training, how long the training will last and your expected goal of improvement for that area. Post a training schedule for the month and make it a monthly priority. Training is not a sometimes activity. It’s an everyday requirement.

Set goals for appointments and make action plans to reach those goals as a dealership. This requires goals and action plans for each sales person as to their activities to set daily appointments. Strive for and monitor appointments and watch your sales increase.

Every sales person should be coached daily in a one-on-one session. Set a game plan for who does this, when they do it and the expected results. Items covered in those sessions should be their sales pace in relation

to their goals and their percentage of success for total seen contacts, demos, write-ups, closed and deliveries. Those items should be monitored for both yesterday’s traffi c and month-to-date totals. Each sales person should have a day planner. The sales people should be required to have a plan for their day that is broken down into an hourly focus. To-do lists and follow-up systems should be reviewed for both sold and unsold customers. Review yesterday’s traffi c for each sales person, walk back through what happened and listen for clues that would show breakdowns in their sale process. These activities alone can increase your dealership’s sales 20 percent.

To make more money, each morning the managers hold a save-a-deal meeting in the F&I offi ce to review yesterday’s sold and unsold traffi c. All deals in F&I should be reviewed. Review approvals to see if they have been delivered and if not, why? If delivered, have they been booked out and turned to the offi ce? Review fi nance turn-downs for reasons why and any possibilities to approve those deals. Review dealer trades and the status of those deals. Review heat sheets and contracts in transit for deals not funded and deals that have missing items, such as titles, etc.

It takes increased effort and focus to improve your sales 20 percent. Many dealers just increase their advertising in hopes of increasing sales, and in turn, make their sales people traffi c junkies. The percentage of gain in bottom line and long-term benefi ts is what you are seeking, not short-term fi xes. The fi rst step is to get rid of the notion, that there are good and bad months. You either have good or bad goals, game plans, actions and reviews of actions. Good or bad months are directly attributed to those items and are not luck.

Mark Tewart is the president of Tewart Enterprises. He can be contacted at 866.429.6844, or by e-mail at [email protected].

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Schomp Automotive IncreasesInternet Sales by 300 Vehicles in 2004

RayVelasquez

At Schomp Automotive we stake our reputation and success on one word: Respect. At Schomp, respecting

the customer starts with an innovative one-price plan that eliminates the price battle and proves a commitment to satisfying the needs of the customer. While many dealerships may pay lip service to the concept of one-price, at Schomp this is not an experiment but an intrinsic part of our culture.

Respect also means that Schomp sells according to the needs of the customer, saying good-bye to outdated one-size-fi ts-all, high-pressure sales techniques in favor of a highly individualized sales approach that draws in customers and turns leads into sales. Lisa Schomp will tell you our approach to sales is two-pronged and that we pay equal attention to providing a superb Web site where customers can research and fi nd exactly what they need and to our state-of-the-art CRC that ensures our telephone customers’ needs are met promptly and effi ciently.

Here are the highlights:• Lisa Schomp made respect the

cornerstone of our dealership and increased sales and retention by coupling a one-price plan with a highly interactive Web site and CRC system.

• Implementing the CRC system has led to increased sales because it greatly enhances follow-up by the sales staff. Customers are no longer slipping through the cracks. CRC representatives are much more than operators. They take in-bound sales calls and decipher the customers’ needs so that they can answer the question, or forward them on to the correct sales consultant. Schomp provides prompt responses with real and to-the-point answers and a genuine interest in the needs of the customer. The focus is to set an appointment, and this is a true team effort.

Web siteOur Web site is integral to our success; we sold more than 1,000 vehicles online in

2004, and now one in seven vehicles is sold online. The Web site offers literally hundreds of ways for a customer to contact us. It is simply putting out as much bait as possible and letting the customer decide which ones to take. We try not to overload them and turn a buyer into a shopper, but we try to balance the information that we make available. We use a suite of powerful multimedia e-mails to selectively target our clientele with highly interactive campaigns, but without overdoing it.

Electronic marketing We’ve had tremendous success with e-mail broadcasts and have moved to a heavy duty multimedia e-mail broadcast to announce big events and custom campaigns. We have had a 10 percent return on e-mail promotions. The way we look at it is if we broadcast 400 e-mails for free and make two sales from fi ve minutes of typing, that medium cannot be beat. Our customers seldom opt out since we do not overwhelm them, and we provide them with the information they want and need.

Populating the eMail DatabaseWe collect, on average, 700 new Internet leads per month, but we also solicit e-mail addresses from our entire customer base. We then extract that data from our DMS and import it into our CRM tool. We do this type of import two or three times per year. It costs nothing.

Third Party Lead ProvidersWe are fi rm believers in independence from

“lead generators” and auto brokers. We post our inventories on a couple of services, but we rely mainly on our own Web site and treating our customers the way we would like to be treated. By using our own site to pull in leads and treating customers fairly when they walk in the door, we’ve increased our site leads tenfold.

Process for turning leads into appointments and salesPrompt responses with real answers, a genuine interest in helping the customer, and dual points of contact really help to cement us to our customers. We never bring a customer here under false pretenses or tell them what they want to hear – we have a good blend of salesmanship in addition to giving them a reason to want to come in. As I’ve said throughout this article, we operate from a foundation of respect. This means we never try to lead the customer, but instead listen to their wants and needs then guide them toward what they’re looking for.

Who is Schomp Automotive?• Schomp Automotive consists of a

Chevrolet, Honda, BMW and Mini franchises that sell about 6,000 vehicles a year

• Schomp sold more than 1,000 vehicles online in 2004

• One in seven vehicles is sold online• Schomp’s informative and easy-

to-use Web site generates 700 new Internet leads per month

• Schomp’s digital marketing has accelerated sales from 730 vehicles sold in 2003 to 1,001 vehicles sold in 2004

• Schomp enjoys a 10 percent return on e-mail promotions at no additional costs

• Schomp’s targeted e-mail promotions result in three to four sales after each no-cost email distribution

• Lisa Schomp attributes additional sales to the right people, a commitment to respecting the customer and a state-of-the-art digital marketing system

Ray Velasquez is the Internet director at Ralph Schomp Automotive. He can be contacted at 800.526.9808, or by e-mail at [email protected].

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Demo for Dollars

BrianAnkney

Demo Drive

At the end of the walk-around, the sales person invited the customer to sit in

the passenger seat to experience the roomy feel and see the interior features. The sales person joins the customer in the driver’s seat. If you are helping a husband and wife or any group larger than one, put the driver in the front passenger seat and the rest in the back. First start the car and show the customer the electronics of the vehicle. Next put the car in drive and drive away. Do not ask if they want to take a test drive. Most people drive a car before they buy it, and selling is a numbers game. Put the numbers in your favor by getting every customer to drive. Early in the drive, pull into a parking lot with some open rows. Bring the vehicle to

complete stop. Tell the customer about the improved acceleration and stopping distance. Accelerate the vehicle, without spinning the tires and than stop quickly. Now, turn the wheel and show the customer the incredible turning radius. Drive the vehicle in two or three slow circles. Now get out and invite the customer to try both the accelerate and stop as well as the round and round. No matter what the vehicle or how well it performs, this is a worthwhile part of the demo drive. No one drives their car this way, so any performance looks and feels good.

Once the customer has been thoroughly amazed in the parking lot have him drive out on the road. The demo route should avoid heavy traffi c, if possible. The route should have a few areas to accelerate and as least one or two fun turns. Rough roads don’t feel good in any car, so avoid them unless you are

sts ms ls fi s sf


selling an SUV or truck.

Every driver in the car should drive. Even if they say it is not necessary, do your best to get them all to drive. Their opinions matter enough that they came along. You need an opportunity to sway them in favor of a purchase today.

Pre-Close

As you near the dealership, ask the customer if this vehicle fulfi lls the needs you uncovered during the qualify step. Ask at least three or four ‘yes’ questions. Use questions like, “You said that you really wanted a car that had more get-up-and-go. Does this Pontiac G6 have enough zip? You said that you wanted a sun roof. Isn’t this the neatest sunroof you have ever seen?”

Now you have the customer saying yes and testifying that this is the right car. Ask pre-close question one, “You love the zip, the roomy feel, and the sunroof. If price and payments were not issues, is this the vehicle you would like to own?” The customer will either say, “Sure if price were not issue,” or give you an objection.

Often they will bring up the trade or sometimes this might just not be the right car. If the car is not right, get them in another car. If they just have an objection overcome it and move to pre-close question two. “Great so if we can get all the numbers agreeable, you will take this G6 home with you today?” The customer may answer with, “Well, we need to see those numbers fi rst. I need $8,000 for my trade.” Be strong and ask again, “What I mean is…if I can get the numbers agreeable, including your trade, you will take this G6 home today?” You may need to ask this question four or fi ve times with explanations in between. There is only one acceptable answer – YES.

Now have the customer park the car where they can see it from your desk and lead them into the service department.

Brian Ankney is a sales-improvement strategist at AutoSuccess. He can be contacted at 866.247.9587, or by email at [email protected].

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Promoting ChangesRealigning Staff Can Breathe New Life Into Your Dealership

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leadership solution

The latest wave of eager, book-schooled, graduates is crashing onto the shores of every industry throughout the world;

hiring managers are fi nding themselves taking on the somewhat unenviable role of traffi c directors. With eyes focused on the goal of long-term success for their company, decision-makers and strategists have already determined which departments can indeed take on fresh, inexperienced employees and which simply cannot. Making room for enthusiastic new hires often compels managers to implement changes to their workplace; it also propels many to take an active role in growing the business by promoting their existing employee superstars. Should they?

PromotionsHow readily can your own staff accommodate new situations, new members or new business practices? Who is it that you really should or should not promote?

When considering an employee for a promotion, be sure that person is not only productive but also ready to take on the responsibilities that would be inherent to his or her new role. Some people are very good at what they do, but they want predictability and have no real desire to move up the corporate ladder. They set modest goals for themselves and like working with very little pressure.

People like this are perfectly content to perform the same job year after year. They’re loyal, diligent workers who want to earn an honest day’s pay – nothing more. Be aware, however, that they are often also quite accommodating and may heartily agree to take on the promotion only because you seem to want them to. They can prove to be unduly stressed, unmotivated, unhappy – disastrous in their new role.

You may come to the disturbing realization that the same person who performed so well previously is now completely ineffective. It’s important to know not only your subordinates’ abilities, but also their career goals. Don’t make the mistake of imposing lofty career objectives on someone who simply does not have them. You need to fi ll positions of authority with people who are enterprising, ambitious, assertive and self-confi dent.

Before offering a promotion to an employee, ask yourself these questions:

1. Does your candidate for the job really want to move up?

2. What kind of work approach, personality and pace does the job require?

3. Does the person you have in mind exhibit those traits?

Remember that promoting a great person into the wrong job will create stress, confrontations, confusion, worry and resentment. Research your needs and analyze your employees to help ensure a good mutual fi t.

Succession PlansWhile you may have no intention of leaving your dealership, unexpected situations can arise and grow beyond your control. A health issue or family crisis can erupt. A new interest or a sudden desire to cast aside the pressures of business and pursue long-held personal dreams has compelled countless auto dealership owners, presidents and GMs to do what they never thought they would do: step down from their job. It’s best to ensure a smooth and cost-effective transition of power by implementing succession plans.

It’s possible that someday, one of your own staff members may need to take over your job. Do you have people in place who could be qualifi ed and ready to do so?

You may be planning to turn over the reins of your business to a son, daughter or other signifi cant family member. However, bearing your name or knowing your family’s well-kept secrets is not enough to successfully

take charge of your dealership. What are the criteria for positions of leadership at your dealership? Does your relative meet them? If not, which other staff members could assume your position of authority?

Longtime customers will feel less anxious if, after your departure, your dealership is still overseen by a person with similar values, a similar business outlook and a similar measure of the concern you have shown throughout the years. Preserving the good name, solid reputation and positive image of your dealership is key. It becomes critical to provide your customers, as well as your staff, with an ongoing sense of confi dence about the future of your company whether you are there at the helm, or not.

Your short-term goal should be to develop a pool of leaders, fi nd workers who show some potential to make independent decisions, act on their own behalf and make decisions. Doing so, however, can be more diffi cult than it seems.

For example, a person who is openly enthusiastic, talkative and comfortable in the spotlight might seem like a good choice to take charge of others. However, be careful. The same high level of self-confi dence and leadership ability you think you see may really be social assertiveness, a comfort around people and an ability to strut before an audience. Make sure there are other signs of determination, ambition or resolve. People whose greatest strength is their social savvy often talk a bigger game than they can actually play.

The effects of poor leadership can be widespread within a dealership and may vary from loss of a customer base, to poor sales, to low morale. The opportunity to avoid these mishaps is yours; the key lies in knowing your needs, not guessing, and being certain about the work habits, objectives and personalities of the people who surround you.

The future of your dealership is in your hands and depends on the strategies you have in place today. There is no turning back, no second chance and no margin for error.

Carol Martin-Ardell is a senior consultant with the Omnia Group. She can be contacted at 800.601.3216, or by e-mail at [email protected].

The future of your dealership is in your hands and depends on the strategies you have in place today. There is no turning back, no second chance and no margin for error.

june 2005 31


Tools for DevelopingLifelong Customer Relationships

DanVogelsts ms ls fi s sf

marketing solution

Dealers know the great satisfaction that comes from connecting with a consumer and making a sale, but they also know that

it takes much more work to transform that consumer into a lifelong customer. Because today’s customers have so many shopping options at their disposal, they also require a more personalized type of customer service.

According to marketing information services fi rm J.D. Power and Associates, the cost of keeping a customer is generally lower than gaining a new one. J.D. Power and Associates also states that customer retention can be predicted to a fairly strong degree based on a customer’s sales and service experiences.1 To that end, delivering what automotive customers want when they take their vehicles for maintenance or repair should result in more satisfi ed customers and increased profi ts.

Beyond the Initial SaleKeeping in touch with customers after they buy a vehicle helps dealers set the stage for lifelong relationships that are much more profi table over the long term. Today’s dealers cannot afford to falter in keeping customers happy once they drive off the sales lot. Service is a key profi t center for dealers. Though it brings in an average of 12 percent of revenue, the operating profi t on service centers averages 46 percent.2 Dealers with strong service programs create environments that foster loyalty, keeping both the dealer and the manufacturer happy. With fl attening car sales and diminishing brand loyalty, keeping customers happy with ongoing service is even more important these days.

Although dealers generally know that follow-up is important in building a lifetime relationship, they also know it is not an easy task to keep an updated database and to manage multiple data points for hundreds or thousands of customers. Choosing the best way to communicate with customers is often a diffi cult task. It is important that dealerships create a solid customer retention plan backed by the proper tools.

Many customer retention tools of years past put customers into a database, tracked mileage from information received from the dealership computer management system,

then systematically sent letters and made automatic phone calls to customers based on time elapsed from projected due dates. The approach has worked to a certain degree, but mileage doesn’t have to be the sole criteria to determine what is sent to customers and when it is delivered. A better way is to reach customers at the right time via personalized communications across multiple channels, including e-mail, telephone, Web sites and print media.

Personalization = Loyal CustomersSuccessful dealers know they need to fi nd new ways to differentiate themselves, and personalization is an important part of the process. A personalized approach creates loyal customers who believe their dealership cares about them in particular. According to Deloitte and Touche, a 5 percent improvement in customer loyalty marketing can increase a dealer’s total operating profi t by 25 percent.

The good news is that there are now more intelligent products available in the market that enable dealerships to reach customers through multiple channels, based on many more demographic factors than just driving habits. These dealers offer their customers personal Web pages, customized services reminders and personalized e-mails that target their specifi c needs and interests. Dealerships that are putting these newer tools into use are experiencing higher levels of repeat business and referrals.

By taking the time to learn more about each customer before contacting them, and having an outreach plan that is both fl exible and intelligent enough to personally connect with each customer, response rates increase signifi cantly while dealership expenses diminish.

Dealership SuccessDealers that focus on relationship building through personalization can attest to reaping the reward of repeat business and referrals from customers that are satisfi ed with their purchase and are happy with their ongoing dealership services.

Today, The Sloane Automotive Group, one of the most recognized dealership names in eastern Pennsylvania, receives value from its customer retention program on a daily basis. The overall response rate to its customized service reminder program has grown to

average 50 percent per campaign, meaning 50 percent of mailings achieve some type of customer action. Considering the industry average response rate is approximately 3 to 5 percent, this is a signifi cant benefi t for Sloane. In addition, Sloane’s average return on investment per customer, per service reminder distribution, is nearly $32, meaning for every $1 the group spends on a service reminder, they are pulling in $32 in return.

Through the use of personal Web pages, about 18 percent of Sloane’s service appointments now come in over the Internet. This effi ciency frees up time for the service team members who schedule appointments in a more productive way. Increased employee satisfaction has thus become an added value for Sloane.

A good customer retention tool will enable dealerships to take complete control of their databases, resulting in decreased marketing costs and increased profi ts. Communicating with customers based on their personal choices, providing them with personalized Web pages and targeted communications is a great recipe for developing lifelong customers.

Customer Retention Tool Checklist: • Data segmentation based on

customer spending, purchase and visitation habits

• Multi-channel marketing using mail, e-mail, Web sites and phone

• Personal Web pages for customers• Integrated dealer Web sites with

online reports • Enhanced precision in ROI

measurement capabilities • Dealership database cleansing

(Footnotes)1 J.D. Power and Associates press release “J.D. Power and Associates Reports: Chevrolet Has the Highest Customer Retention Rates in the Industry” 12/29/03, based on their 2003 Customer Retention Study (SM)2 NADA Data 2004

Dan Vogel is vice president and general manager of AVV Inc., a subsidiary of Autobytel Inc. He can be contacted at 866.826.8907, or by e-mail at [email protected].

continued

continued from page 15


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not met before.

• Face the person heart-to-heart. When you stand at an angle and don’t face the person squarely, you are sending the symbolic message that you are not being straight and open.

• If you have a problem with clammy hands, don’t forget to wipe them on your handkerchief or tissue before you shake

hands. And at social functions, carry any iced drinks in your left hand, so your right will not be cold and damp when a handshake is called for.

• Strike out your right hand and arm across your body to your right. The forcefulness and confi dence of the move lets the other person know you not only want to shake hands, you look forward to it.

• Make sure the arm goes fully outward as

an arm held closely to the body indicates timidity and lack of confi dence.

• Make sure your hand is straight up with the thumb on top. The thumb on top is symbolic; it indicates you want equality in your interaction. No one person will dominate. You will respect the other person and expect him or her to respect you.

• Stretch out and open your hand between the thumb and the fi rst fi nger so that you slide your hand easily into the web of the other person’s hand. Make sure the rest of your fi ngers are together with your palm fl at rather than cupped so palm can touch palm.

• Make palm-to-palm contact. Open palms symbolically show a desire to be open and honest in your interactions; not giving a person contact with your palm in a handshake is read subliminally as a lack of openness and honesty. It’s why we hate a wimpy handshake. It makes the other person nervous and he or she may wonder what you are hiding.

• Once full contact is made, wrap your fi ngers around the other person’s, put your thumb down gently, lock thumbs and squeeze the hand fi rmly. The pressure should be equal or, at most, slightly more than the pressure you are given. Never grip the other’s hand in a contest of macho handshaking to see who can hold the hardest or longest. You want to have a fi rm handshake but the rule is to match the pressure or add no more than two steps in pressure.

A fi rm handshake that shows strength and vigor with appropriate eye contact length and completeness of grip is related to a favorable fi rst impression.

The handshake is a potent element in communicating your personality and intent. It speaks volumes about who you really are and what you actually think. So smile and reach out your hand for the perfect handshake.

Patti Wood is the president of Communication Dynamics. She can be contacted at 800.849.3651, or by e-mail at [email protected].

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