AutoSuccessNov09

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November 2009

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marketing solution

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By ErikStuttz

MattBaker 34 WANT A ‘GOOD DEAL’? FOCUS LESS ON PRICE AND MORE ON OUTCOME

WHY VELOCITY MANAGEMENT?DalePollak 14

BUILDING A TOP-RATE SERVICE DEPARTMENTChuckPatton 10AdamDaniels 16 POS VISUAL MEDIA ADVERTISING - THE BEST

BANG FOR YOUR BUCK

SeanV.Bradley 26 BE CAREFUL:Don’t Let Your Facebook, MySpace or Twitter Account Get Your Dealership Into Trouble

NOTHING FAILS LIKE SUCCESSStephenR.Covey 08

MarkTewart 15 CHOOSE TO WIN OR CHOOSE TO LOSE

THE POWER OF A POSITIVE ATTITUDEPaulCummings 28

CREDIT CARD PROCESSING TODAY - WHY IT IS CRITICAL TO YOUR DEALERSHIP

EricSelby 18SIMPLE STEPS TO ESTABLISHING RAPPORTTomHopkins 22

SALES FORMULA 2009KirkManzo 30

DEGREE OF DIFFICULTYSteveBrazill 09

RalphPaglia 20 WHY DEALERS NEED A SOCIAL MEDIA AND REPUTATION MANAGEMENT STRATEGY, PART 2

GeorgeDans 32 DECIDE THAT WHAT YOU ARE DOING IS REALLY WHAT YOU WANT TO DO

THE ONLY CONSTANT IS THE ART OF SELLING CARS: TRAFFIC COUNTS, ATTITUDE AND BASICS

RichardLibin 36

TASCA AUTOMOTIVE GROUP MAKES THE SWITCH AND WHY...HOW THE TASCA AUTOMOTIVE GROUP LEVERAGES BEST-IN-CLASS TECHNOLOGY AND WORLD-CLASS CONSULTING TO DRIVE RESULTS

www.autosuccessonline.com

08

StephenR.Covey

NOTHING FAILSLIKE SUCCESS

leadership

solu

tion

Are you struggling to make changes or

respond to changing conditions? I know many people right now are being forced to change the way they work or live because of our turbulent environment. What we might all consider in these times is what the great historian Arnold Toynbee once said: “Nothing fails like success.”

What does that mean exactly? Well, if you consider the challenges you’re facing, you might just be using an old approach that isn’t equal to the challenge. In other words, when we have a challenge and the response is equal to the challenge, that’s called success. But once we have a new challenge, the old, once successful response no longer works. That’s why it’s called a failure.

We have to examine our paradigms (our view of things), our tools and our skills to determine if we’re approaching the problem in the right way. As a fi rst step, we may even step back and make sure we’ve correctly defi ned the problem. Then we need to see if,

based on the evidence of results or lack of results, we need a new approach.

As you ponder your challenges, consider if you need a new mindset, a new skillset or toolset. You may need to adjust your view, try a different perspective or a new way to think about it. You then may need to acquire some new skills or tools to tackle the problem. Whatever the case, you may need to fi nd a new model to drive success. This can be an exciting proposition because you will most likely fi nd new growth and development in the process — this is success!

Remember: Nothing fails like success. Be vigilant and be ready to continually learn and adapt to new challenges, which will surely come your way.

Stephen R. Covey, Ph.D., is co-founderof FranklinCovey, and is the author ofThe 7 Habits of Highly Effective People. He can be contacted at866.892.6363, or by e-mail [email protected].

One of the useful features of running a

business is the frequency with which we get to “go to school” on other businesses. We get many opportunities to be someone else’s customer, and it’s instructive to observe how they treat us.

I recently had an experience reminding me that an employee’s customer service skills can generally be categorized into one of three levels:

1. Makes easy tasks look diffi cult 2. Makes diffi cult tasks look diffi cult 3. Makes diffi cult tasks look easy

Employees who make diffi cult tasks look easy are worth their weight in platinum. They serve as role models for others in your organization, calmly put out fi res and slay problems while spreading confi dence and enthusiasm in their wake. As powerful as their impact on other members of your team can be, that is nothing compared to their effect on your customers.

Consider what happens when a new

customer makes his or her fi rst-ever visit to your dealership. This should be a joyous event in the life of your business – an opportunity to create a favorable fi rst impression and launch a relationship that will provide a revenue stream that lasts for decades and, when managed well, leads to referrals that spawn even more multi-decade revenue streams.

So what happens when that new customer enters your dealership? Are your people so preoccupied with their “diffi cult” jobs that they muff the opportunity to create a good fi rst impression? If a new customer, being unfamiliar with your business (as new customers tend to be), wanders into the wrong department, asks the wrong questions or shows up without an important item of paperwork, how will your people respond? Picture a fork in a road. Now picture an employee who routinely makes everything appear so easy that a new customer’s transition to your store feels like a no-brainer. Now picture an employee who makes that process feel diffi cult.

Perhaps you will want to run a simple score on your operation. For every employee you have who makes diffi cult work appear easy, give yourself a point. For every employee who makes diffi cult work appear diffi cult, give yourself zero points. And for every employee who makes easy work appear diffi cult, subtract a point. (If you have any employees in that category, please ask yourself a simple question: Why?) It goes without saying that your score should be a positive number. Congratulations if your score is equal to your number of employees. If it is less than your employee count, you have work to do.

A fi nal thought: At which level do you perform? You can bet your employees are keeping score on you!

Steve Brazill is the chair of automotive marketing for Northwood University, Texas Campus. He can be contacted at 866.861.1515, or by e-mail [email protected].

SteveBrazill

leadership

solu

tion

DEGREE OF DIFFICULTY“As you ponder

your challenges, consider if you need a new mindset, a new skillset or toolset. You may need to adjust your view,

try a different

09

the #1 sales-improvement magazine for the automotive professional

perspective or a new way to

think about it. You then may

need to acquire some new skills

or tools to tackle the problem.”


10

In down times, like we’ve all just

experienced, dealerships often rely on service departments and fi xed operations to ride out the storm. I recently sat down with Pat Arnotte, service director of Delaware’s Porter Automotive Group, an organization that has shot to the top ranks of service departments in the northeast United States.

Chuck Patton: Pat, tell us a little bit about your background, and how you came into this industry.Pat Arnotte: Well, my mother was actually a controller in the car business for more than 40 years. From the time I was 12, I washed cars in the summertime until I got a driver’s license and started to deliver parts and work my way up the parts side. At 22, I was a parts manager, and was parts and service director by the time I was 26. I’m 43 now, and have been doing it ever since.

CP: Tell us about your dealership, Porter Automotive Group.PA: We’re located in Northern Delaware, and are part of the Philadelphia market. Our group includes Nissan, Chevrolet, Hyundai, Ford and Mitsubishi franchises. Our Nissan store is the store I originally took over seven years ago. They were No. 6 in a district of 10 stores in customer-paid labor. That store is now the No. 2 customer-paid dealer in the whole New York region, or the eastern region, which runs from Maine all the way down to the bottom of the state of Delaware — that includes all the Philadelphia, New York and Boston stores, and our sales volume is nowhere near what some of the other stores are. We do a very good job with retention.

CP: Describe how the changing market has changed the way service departments do business.PA: One of the craziest things I’m seeing right now is the number of customers who wait while their vehicles are being serviced. When a customer comes in and waits, you really can’t sell them as much work as you

can when they drop off their car. Maybe customers realize that, or they have more time, or more people are not working. The number of waiting customers used to be about 25 percent. It’s now more than 50 percent, and it’s pretty steady across the board with people I’m talking to. If you want volume coming through your store, you need to bring in more of these waiting customers. The more waiting customers you bring in, though, the harder it is to load up your shop, because you’re constantly pulling techs off of big jobs to get these customers in and out. It’s just really tough with the waiters.

CP: How have the marketing needs of service departments changed in recent months?PA: There have been big changes. Things that have worked in marketing for years just aren’t working now. We’re trying to come up with new and different ideas to drive some traffi c through marketing, but there isn’t a “get rich quick” scheme like there used to be. I used to be able to throw out “20 percent off” in a direct mailer, and my shops just fl ooded with work. Right now, will it drive some traffi c? Sure, but not like we were used to.

CP: Why do you think that is?PA: The customers want to get in and out fast and not spend any money. Even when you show them that their brake pads are metal to metal, some people just don’t have the money and aren’t buying. I’d like to compare the amounts of tickets over $1,000 this year to those last year at this time. I think we’re doing a lot more of those tickets than we were before, but what we’re not getting is that mid-range, the $300 - $500 maintenance jobs. The customers aren’t getting the 30,000 mile service – they’re just getting the oil changed.

CP: What opportunities exist for dealers that are easier to realize than they might think?PA: The biggest thing that I see most dealers not utilize is their own database. They have names, addresses, phone numbers, years,

makes, models and mileage. In my stores alone, we have information on 22,000 people. What I do with that information is what drives traffi c in my store. I talk to service managers who say, “I bought a Polk List.” Why would you buy something when you have plenty of information on your own to extract from your own database. Mine it! You can do model-specifi c mailers, mileage-specifi c mailers, “lost-souls” mailers – whatever you want. It’s information you already own and can easily get. Data mining is what really can make you a fortune if you can fi gure out how to do it.

Next month, we’ll conclude our interview with Pat Arnotte, and talk about the changing expectations of service managers, some of the most common mistakes service managers can make, and some words of advice.

Chuck Patton is the founder and CEO of Traffi c Builders, Inc. He can be contacted at 866.859.8520, or by e-mail [email protected].

marketing

solu

tion ChuckPatton

BUILDING A TOP-RATESERVICE DEPARTMENT

“The biggest thing that I see most dealers not utilize is their own database.They have names, addresses, phone numbers, years, makes, models and mileage. In my stores alone, we have information on 22,000 people.What I do with that information is what drives traffi c in my store.”

12

What does a hot rod and a drag racing organization have in common with a rural family-operated dealership nestled in the quiet timberlands of Cranston, Rhode Island?

In a name, it’s “Tasca.” Tasca Automotive Group, a third-generation family business, shares the expertise and enthusiasm of their vice president, Robert “Bob” Tasca III, with the world’s largest and loudest auto racing organization, the National Hot Rod Association (NHRA). Bob, a hot rod enthusiast and pilot of a Ford Motorcraft Quick Lane Nitro Funny Car, has been racing as a professional for two years. In that short period, he has already won two major national events —The Gator Nationals in March and the Toyo Tires Nationals in August. And don’t let the name fool you — it’s no laughing matter when the funny car that Bob is driving, a modifi ed ’09 Shelby Ford Mustang, makes 8,000 HP and accelerates to 310 MPH in just over four seconds.

But the NHRA, Ford Motor Company and Tasca Racing have more in common than just a vibrant presence. The continued growth and success of these organizations can be attributed

to the commitment and loyalty of their fans. The NHRA is known for its open-pit policy, which allows fans an up-close and personal view of the race cars and crews. You can watch fi rsthand how mechanics can rebuild an engine in no time, or feel the power of a fuel-burning engine when the team test fi res the engines. It’s not unusual for the drivers to be found in their pit areas mingling with the fans and signing autographs. It’s no wonder that NHRA continues to have one of the most loyal fan bases of any sport.

Likewise, at Tasca Automotive Group, their continued growth and success can be attributed to the “Tasca Way” of doing business, which focuses on customer satisfaction. While the organization has had some of the highest CSI scores in the nation, Tasca Automotive has been able to increase their sales and CSI further by leveraging best-in-class customer relationship management (CRM) technology and their internal Tasca University consulting program. These factors have driven their people, processes and technology with measurable results.

We recently sat down with Erik Stuttz, partner and vice president of Tasca University, to learn some of the secrets of their success.

AutoSuccess: How did you get started leveraging technology to increase CSI and sales?Erik Stuttz: We researched the best CRM providers in the country, looking to partner with a company that had a proven automotive track record of delivering results. We wanted a CRM that was designed to help our sales and service departments maintain an ongoing relationship that fi ts with the Tasca Way. After researching what the best dealers were doing, we signed up with VinSolutions, a company that we believed could help us achieve our goals our way.

AS: How does this new CRM technology tie in with your consulting company, Tasca University? ES: Our new CRM provider gave us a way to maintain ongoing communication with our sales and service customers within our entire automotive group. We now have a seamless, customized program to enable us to communicate with our client base, and that is important to us because we don’t do a ton of advertising.

Our philosophy at the dealership for more than 65 years has been to rely on repeat and referral business, and our new CRM system from VinSolutions provides us a better way to serve our customers.

We wanted Tasca University Consulting, the division of Tasca Automotive that serves

as a nationwide in-dealership consulting company, to partner with a company that delivered dealers a proven solution, as well. So, we aligned Tasca University with the same CRM company, VinSolutions, that Tasca Automotive now uses to help other dealerships throughout the country combine this custom technology with the people and processes within automotive dealerships.

At Tasca University, we are unlike most training companies in that we develop a curriculum built around two perspectives.

First, we deal with the procedural and mechanical aspects of implementing a CRM initiative within a dealership. Second, we look at the implementation of the technology, people and processes to create a success or desired result. Certainly, both play an important role in the overall success of any CRM and training program, but they rarely play a role in developing the culture necessary to win in the long term.

This is what makes us different at Tasca University. Bob says that everything we do at Tasca University is principle based, and that principles don’t change over time and are the fundamental building blocks necessary to establish the culture needed to win in the long term. He reminds us that, at the end of the day, the customer will not remember much about what was done or even said, but they will never forget how we made them feel.

By combining these core values developed over the years with best-in-class CRM technology, and then couple that with our Tasca University consulting, we can provide dealers a proven solution that drives proven results. It’s the ultimate combination necessary to operate now, and in the future.

AS: How did you tie together VinSolutions’ CRM technology and your own people and processes at Tasca Automotive? ES: Technology will help maintain communication with your sales and service ownership base, but that is only as good as the people, process, training and support that comes with it. When we launched our new CRM initiative internally within Tasca Automotive, we took the entire management team off-site for two days to clearly defi ne our mission and vision, and created a step-by-step action plan for getting there. As a result, we’ve developed a sales and service model that defi nes exactly what needs to be done, how and when it needs to be done and who is accountable, as well as defi ning the performance results we need in order to measure how well we’re doing.

We’ve created sales and service playbooks that clearly defi ne, in detail, how we manage the entire life of our relationship

with a customer and ensure every customer gets a Tasca experience. Since our custom CRM process is spelled out — most of it is automated and all of it is measurable — I have access to every report I need to manage my people. We can continuously improve our consistency, professionalism and customer loyalty.

AS: Why is it important to measure and track performance? ES: The best part about our new custom VinSolutions CRM application is that everything is measurable. The biggest mistake that dealers and managers make is failing to use the reports they have available to them. A few minutes a week, or even once a month, can provide a great snapshot of how things are going, who is excelling and where your process needs fi ne-tuning. We use these numbers to refi ne and adjust our strategy so we can continue to improve our business. Our CRM application has certainly become the primary focus of our operations, and it really encompasses the whole dealership. When it comes down to it, whatever we’re doing is working. Our general manager, Carl Tasca Jr., might have said it best: We are excited about what we have accomplished, but we are most excited about what the future holds.

Whether in the pits or the showroom fl oor, whether you are a racing fan or a dealership customer of the Tasca family, you are sure to get a feel of their passion for leveraging incredible industry-leading technology and their genuine loyalty to those individualswho are the sole reason that organizations like the NHRA, Ford Motor Companyand the Tasca Automotive Group continue to thrive.

Erik Stuttz is a partner and vice president of Tasca University. He can becontacted at 866.402.0697, or by e-mail at [email protected].

For more information about VinSolutions, contact Sean Stapleton at866.396.5266, or by e-mail at [email protected].

“By combining these core values developed over the years with best-in-class CRM technology, and then couple that with our Tasca University consulting, we can provide dealers a proven solution that drives proven results. It’s the ultimate combination necessary to operate now, and in the future.”


14

MarkTewart

leadership

solu

tion

CHOOSE TOWIN OR CHOOSETO LOSE

15

the #1 sales-improvement magazine for the automotive professional

For the past several years, I’ve been

making a case for a new method of used car management that I call “Velocity.” The basis for needing a new strategy for making money in used cars is the fact that the Internet has transformed the used car market into an effi cient market.

In an effi cient market, buyers and sellers have relatively equal knowledge of choices and alternatives. With the Internet providing shoppers the ability to see every vehicle in the market and how they are priced, why should we believe that we will get lucky as often as we used to? Do we believe that better negotiating tactics will overcome customer’s knowledge of identical choices and alternatives? Do we think that blowing up more balloons in the showroom or putting a bigger gorilla on the roof will make the difference? Simply stated, the business has changed, average front end grosses will not be what they once were, and we need to change the way we are

DalePollak

WHY VELOCITY MANAGEMENT?

operating to remain profi table.

The need for such a profound change is very diffi cult for many dealers to embrace. Instead, many continue to price vehicles in the hopes of capturing the large grosses of the past. In reality, this is the worst possible strategy to achieve profi tability in today’s used car marketplace.

Once – and only once – a dealer comes to terms with the reality that the old front end grosses of the past will not return, the only remaining question to be answered is how the lost profi ts will be replaced. The obvious answer is that they can only be made up with additional volume. Achieving additional volume, however, requires a dealer to stop pricing every vehicle with a large mark-up in an attempt to recapture the large gross profi ts of the past. To do so is like shutting the oxygen off to a patient that is in desperate need. The correct approach is the Velocity method of management, which advocates opening the valves wide by pricing vehicles

at or close to their true transaction point. Under these conditions, traffi c and sales immediately increase and used car operations experience a vitality and vibrancy that had been long lost.

In order to successfully implement the Velocity strategy, dealers must have new technology and information to make better decisions. Specifi cally, they must know which cars can be priced high and reduced slowly if necessary, and which vehicles need to be priced low and reduced quickly if necessary. Knowledge of this difference is

a “must have” for a Velocity dealer.

The technique that Velocity dealers use has two steps. First, the Velocity dealer takes special care to know the individual physical qualities of each and every vehicle. Some vehicles are special, some ordinary, some replaceable and some simply one of a kind. Such qualities certainly matter in making the pricing decision. After the physical qualities of the vehicles are assessed, the second remaining consideration for knowing which vehicles should be priced high and which should be priced low is an understanding of their current supply and demand. Vehicles with high demand and short supply can be priced with thousands of dollars of mark-up while vehicles with high supply and low demand need to be priced aggressively for a quick sale and a possible fi nance opportunity.

Equally important, the Velocity dealer must change the negotiating culture of their showroom to support their new pricing strategy. The salespeople need to recognize that an approach more oriented to volume than extraordinarily high average gross is needed. Therefore, sales managers must fully comprehend that the dealership’s vehicles are priced to sell, not to negotiate. To this extent, documentation replaces negotiation in the showroom experience. Information is powerful and the Velocity dealer can use their superior knowledge about each and every competitive vehicle in their market to demonstrate to the customer that the offered price is truly a great value.

The move from a traditional used car model to a “Velocity” model is a journey. Habits and practices that were successful in the past need to be replaced with new ones. The good news is that today, many hundreds of dealers are making the Velocity journey. These dealers have found value in networking with one another. Their shared experiences, challenges and successes help them navigate and serve to reinforce the rewards. The growing community of Velocity dealers is enjoying the rich rewards that are still available to those that are willing to adopt the necessary new strategies and tactics.

Dale Pollak is an author and the founder of vAuto. He can be contacted at 866.867.9620, or by e-mail [email protected].

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Traffi c is slow, business is weak, the

economy stinks and banks aren’t buying. Repeat this mantra 100 times and see how you feel. I promise you that if you replay this message enough, you will believe it as absolute truth and become depressed and desperate. No matter what circumstances are at present, the choice is simple: You choose to win or choose to lose.

The one single ingredient that is always present in any success story is self-determination. You are always responsible. You are responsible for the good and you are responsible for the bad — it’s just that simple. If you will allow any excuse for failure — no matter how overwhelming the evidence — you have sown the seeds for more excuses to follow.

To succeed in good or bad economies takes the exact same ingredients, but in tougher times it takes more resolve to keep producing the successful ingredients. Your success or failure is based upon your beliefs and philosophy. If you do not have a belief system to support success and a personal philosophy of self-determination, you are subject to all forces that cause failure.

You must create an impenetrable mind — a mind that can sustain all attacks of negativity and philosophies of randomness. The dirty truth is that most people do not believe in self-determination. Most people are excuse makers, and have philosophies of luck and a welfare belief system.

In the United States, which is the richest country in the world, with resources and opportunities that can only be imagined by people in some parts of the world, people make excuses everyday as to how they cannot control their own destiny. It is much easier make excuses than to take control of your own destiny. After all, how can it ever be your fault? The economy is so bad, and you certainly don’t control the economy.

The economy is made up of single micro-economies that create a larger macro-economy. You do control your economy, and it starts between your ears. When you listen to the news and hear that things are not good, do you allow that to be your destiny? After all, if you hear it on the news, it must be true, right?

Let me ask you a few questions.

Did you allow your expenses and debt to get too high? Did you allow weak processes and accept less-than-favorable results? Did you create an on-going relationship-based marketing program to your existing customers, or did you ignore your most valuable asset — your customers? Did you neglect to install and enforce daily education? Have you massively self-educated yourself on a daily basis to stay abreast of all developments in marketing, technology, social media and marketplace changes? Have you created a marketing plan based upon measurable direct response media that you continually tweak? Do you allow excuses and surround yourself with excuse makers?

Success is based upon certain fundamental truths. Install and adhere religiously to those truths without fail and you will succeed. Although everyone has setbacks, setbacks are not failures and are only temporary signs to adjust and plan accordingly. Always ask yourself, “What’s next?” Keep moving and adjusting. Success and failure are ultimately a choice. The choice is yours.

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

“You must create an impenetrable mind

— a mind that cansustain all attacks

of negativity and philosophies of

randomness. The dirty truth is that most people

do not believe inself-determination.Most people are excuse

makers, and have philosophies of luck and a welfare belief system.”


16

POS VISUAL MEDIAADVERTISING - THE BESTBANG FOR YOUR BUCKA recent study showed a majority of car buyers

verifi ed that it was on-site advertising signage that affected their walk in and purchase decision. Whether it is stickers, banners, fl ags or giant infl atables, visual media advertising is one of the most cost-effective and just plain effective forms of advertising.

If you are not using visual media at your dealership, there has never been a better time to invest in this powerful form of advertising. If you already use it, now is the time to look for more innovative low-cost ways to advertise your location, inventory and services. Visual media offers unrivaled return on investment and targets those customers who are already on your doorstep waiting for an invitation to walk in and buy a car from you or have their car serviced.

What is it that you wish you could relay to your customers? Imagine you could have a salesperson unobtrusively relay your specials and deals to everyone who passed by your dealership. Imagine you have someone explain to every person who passes your door every day your company values and your dealership achievements. Maybe you want to remain in contact with the countless satisfi ed customers you have served and just thank them or remind them it is time for scheduled maintenance. That is what visual media covers for you and more.

Get the right quality and work with the right people, and POS advertising will pay for itself over and over again. Buying visual

media can be confusing. What works? What is allowed by my city? How long should a product last? Everyone you speak to telling you something different can begin to seem like an insurmountable task. Working with knowledgeable, professional people who offer proven products help make these decisions easier and your investment more effective.

Investing in the right quality is equally important. A banner, for instance, can pay for itself more and more with each day that it is displayed. If you invest $200 for a 10’ x 5’ banner, every day you have the banner displayed its ROI improves. For example: Assume that the banner generates 10 leads on the fi rst day — the banner’s ROI is $20 per lead and, so far, its cost is $200 per day. On the second day, consider you have the same lead generation as the fi rst day (you have now had 20 leads over two days); your ROI is now $10 /lead and its cost is only $100 /day. For a long-term message or promotion, a banner’s cost is amortized over the number of days it is displayed, and this reduces the cost to just pennies per day. For long-term promotions or messages, good quality materials, inks and production methods are of paramount importance. On the other hand, not every banner, fl ag sticker or pennant needs to last a year or longer. Occasionally you will run a month-long promotion or a weekend-long clearance sale. In these cases, it may not be necessary to pay top-dollar for media, inks and production methods that will last years.

Tie your visual media advertising products

into the rest of your advertising. Besides attracting passing traffi c, the visual media you display is the fi nal advertising your customer sees. Coordinate your on-site advertising with the rest of your advertising, send a consistent message and customers you initiate from other forms of advertising will convert to sales at your dealership, rather than at a competitor. For example, if you are running a “hot buys” clearance sale, have a “hot buys” banners and fl ags to identify your lot easily so that customers who decide to come check out your sale stop in at your dealership. There are other ways to tie in your advertising, too; for example, buying a giant infl atable. Once you display a custom giant infl atable, you can reference your location by the spectacle. When giving directions over the phone, or in any other advertising, you can reference the infl atable: “we’re just off the 56 freeway, look for the 30’ giant Viking.”

The bottom line is that if you want, increase your advertising presence and decrease your advertising costs, spend your advertising budget where you are getting the best return on investment. Whatever your needs, whatever your budget and whatever restrictions you may have, there is POS advertising media that is a must for your dealership. Using these products is a proven method of increasing traffi c and sales for relative minimum investment.

Adam Daniels is the president of Ads4Auto. He can be contacted at866.803.0665, or by e-mail [email protected].

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EricSelby

CREDIT CARD PROCESSINGTODAY - WHY IT IS CRITICALTO YOUR DEALERSHIP

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The use of plastic as a core source of

payment for purchases is here and is here to stay. The fi rst widely accepted credit card was issued in 1958, while the fi rst recognized debit card was issued in 1978. Since the introduction of these cards in the American society, there are in excess of 984 million of these cards in circulation today and this number continues to rise on an annual basis. Today, our society uses credit or debit cards for approximately 50 percent of all consumer purchases and this trend is increasing; in fact, debit card usage is outpacing credit card usage for the fi rst time in our history. We are a society that is on the go, lives for convenience and in today’s economy, strives to save every dollar we can. Credit cards and debit cards provide all three of these caveats, with the plentiful rewards programs offered and ease of use. In short, the era of plastic is here and, as with all other aspects of your business, you must prepare for it.

So what do these statistics mean to you? They mean that there’s a high probability that the potential buyers on your lot or the customer picking up his/her vehicle from the service department will use a credit card or debit card for their purchase, bill or repair order. It means that it is imperative for your dealership, both from the sales and service departments, to have the best credit card processing partnership in place. The proper partnership can and will provide several key benefi ts to your dealership.

Customer ServiceAll existing and potential customers enjoy choices, and this applies to how they choose to pay for major purchases. Some customers will choose to use a credit card out of need, while others will do so to leverage the rewards program attached to their card. Some will utilize their debit card for payment, as they are adverse to any credit card usage. Lastly, there is the group of customers and prospects that still choose to provide a check as a source of payment, and this can be facilitated by your credit card processor, as

well. The offering of credit and debit card processing provides customers an avenue to purchase and/or secure a vehicle “over the phone” that they viewed via your Internet listings. Providing a platform of payment choices for your customer or prospect is a step in providing the pleasurable experience they expect when they visit your dealership.

Cash-Flow AccelerationCash fl ow has always been a critical piece of the fi nancial operations of a dealership, but in today’s economic times, it is even more crucial to the daily operations of your dealership. Your payment processing partner can either be a benefi t or detriment to your cause. On average, all batched credit and debit transactions should be received within 24 to 48 hours. By providing credit and debit payment options, you will guide some parties who would typically issue a check for payment to utilize their credit or debit cards instead, which accelerates receipt of payment. In terms of accepting checks for payment, these can be converted to an electronic transaction, much like a credit or debit transaction, which will further accelerate receipt of funds. In short, subtle changes to your credit card processing structure can greatly accelerate your dealership’s cash fl ow.

SecurityWhile accepting credit cards, debit cards and check instruments is essential to the operations of your dealership, doing so while minimizing potential fraud is critical. Credit card-related fraud costs consumers and businesses in excess of $1 billion annually, and the types of fraud techniques continue to grow. While fraud will never be 100 percent preventable in this industry, there are two key components to focus on when considering your credit card and payment processing:

• Terminal Programming — While processing transactions with the card present is preferred, it is not always able to take place, based on a variety of factors. In these instances, when a card is not physically present, make sure core

cardholder data is required, such as ZIP code, expiration date and/or the security code, when processing a transaction. The more cardholder data required to process a “keyed-in” transaction, the less the likelihood for potential fraud.

• Equipment — The quality of your processing equipment is one of the biggest prevention measures a merchant can take. Many merchants do not want to replace aged equipment, but it is well worth the expense. There are industries standards for both terminals and pin pads, and dated terminals typically do not comply with these standards. The intent of these standards is to prevent any and all fraudulent activity from occurring, as it relates to your payment processing. As it relates to your equipment, I ask you this question: Isn’t it worth the small expense to have equipment that can both accelerate your cash fl ow and decrease potential fraud activity?

SavingsObviously, cost savings in this environment is essential to your dealership. Now is the time to look at all aspects of your business for cost-saving opportunities. Although it is simply a small part of your dealership’s overall makeup, your credit card and payment structure can and will yield material cost savings, when structured properly. Take the time to review this partnership and compare for what is best for your dealership.

In today’s economic times all aspects of your business should be subject to review. It will be the dealerships that take the time to review the smallest aspects of their fi nancial operations that will continue to streamline operations, continue to grow and maintain a successful path.

Eric Selby is with the Northeast Merchant Group. He can be contacted at 866.407.3104, or by e-mail [email protected], or by e mail [email protected].


20

RalphPagliam

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WHY DEALERS NEED A SOCIAL MEDIA AND REPUTATION MANAGEMENT STRATEGY, PART 2Simply put, social media is changing the

way people get their information about the stuff they are thinking about buying. It is also moving customer information sources further away from marketers and their advertising channels (that would be you), and closer to the people they relate to, and interact with, in their online communities. Social networks, user-generated content (UGC) sites, and all their variations make up what people call “Web 2.0.”

What is Social Media Marketing?Dealers should consider social media marketing to be the tactics that can be used to engage automotive consumers in a positive way when they are spending time in various social networks and UGC sites. Social media marketing also includes the creation of a plan that identifi es the sites to target and the nature of the dealer’s presence on each of those sites. This can be as simple as placing an advertisement on Facebook that targets people in the dealer’s local market.

As we have seen happen over the years with traditional media, online media has evolved to better serve people’s wants and needs. Since 2001, the cost of server-based storage has steadily declined, paving the way for cheap and plentiful online hosting of free Web sites provided to consumers in exchange for the revenue from advertisements that appear on their blogs, profi les, forums, photo and video pages. Further technology developments such as broadband Internet access and Web-based applications (MySpace, Facebook, LinkedIn, etc.) have created easy-to-use, fast and robust features that streamline the online establishment of these sites.

Today, automotive consumers spend a lot of time online visiting their social networks and UGC sites, such as YouTube and Flickr. In other words, with social marketing you are “fi shing where the fi sh are.” Just imagine both the potential that these communities can provide to your dealership, or the loss to your dealership if you fail to connect.

What is Online Reputation Management?In today’s world of UGC sites, customers can quickly air their opinions. Because there are so many sites soliciting consumers’ viewpoints, a negative review or dealership rating may be instantly seen by thousands of local customers before a dealer is aware that the negative report even exists! Think of it

this way: In less than a week, these negative online reviews and customer ratings of their experiences at a dealership can reverse the positive impact of a $100,000 monthly advertising campaign.

Automotive consumers trust the reports, reviews and ratings posted online by other consumers far more than the information and messaging produced by dealers and their employees. A rapidly increasing percentage of car buyers and service customers are making buying decisions based on what other customers report on sites like Edmunds, Yelp, Kudzu, MyDealerReport.com, CarDealerCheck.com and DealerRater.com. The Nielson Company, for example, reports that 76 percent of car buyers rely most on what their friends and family tell them about vehicle makes and models considered during the shopping cycle. Meanwhile, only 22 percent of car buyers report basing their selection on what they read in a magazine or newspaper. Another research study, done by the Yankelovich fi rm and published by J. D. Power, asked car buyers “What is the best source of advice on a new car?” A full two-thirds (67 percent) responded with “another consumer.”

Additionally, in 2005, it was found that 92 percent of automotive consumers reported that “word of mouth” was their best source of information on new products.

Even the competing dealer on the other side of town can spread malicious rumors about your dealership and in the hopes of stealing your market share. It is important to realize that, in the absence of a dealership exerting some level of control and infl uence over their online consumer reviews, just a few bogus reports can become your dealership’s new reputation when there are no other reviews of your dealership. On the other

hand, if your dealership has been directing your best customers to a designated dealership review and rating site, and there are more than 50 reports entered over a span of many months, those same bogus reports look inconsistent and exaggerated at best, and outright lies at worst. Wouldn’t it be better to have dozens of raving fan-written reviews show up in a search for dealers selling your make?

So ask yourself these questions: Are you aware of what customers are saying about your dealership? What about ex-employees? What about competing dealership employees posing as consumers? Information travels quickly across the Internet. Have you set up Google Alerts for the name of your dealership so that you get an e-mail every time someone publishes it online with a link to the Web page it appears on? If “no,” then why not?

Bottom line: Start listening to the online conversations about your dealership and the people who work there. Better yet, you should be leading, stimulating and providing the venue for the majority of these conversations affecting how automotive consumers view your dealership.

For car dealers, more than most business owners, it is imperative that you have systems in place to actively listen for anything being posted about your dealership, and a process for immediately addressing anything being said online that is negative or defamatory. That’s reputation management versus reputation chaos.

Next month, we’ll examine a dealer’s social media and reputation management action plan.

Ralph Paglia, is the director of digital marketing at ADP Dealer Services. He can be contacted at 866.883.9250, or by e-mail at [email protected].

Site June 2008 June 2009 Y-O-Y

Member Communities Category 108,341 138,635 28%Facebook 29,292 87,254 198%Myspace.com 59,549 62,831 6%Blogger 40,553 42,922 6%Twitter.com 1,033 20,950 1,928%WordPress.com 17,201 16,922 -2%Classmates Online 15,474 16,224 5%LinkedIn 9,583 11,417 19%Six Apart TypePad 11,189 10,079 -10%Yahoo! Groups 9,801 8,364 -15%Tagged.com 2,867 7,625 166%Source: Nielsen NetView, June 2009, (U.S. Home and Work)

Top Online Member Communities Destinations Ranked By Unique Audience


22

TomHopkins

SIMPLE STEPS TO ESTABLISHING RAPPORTBefore qualifying or beginning your

presentation, it’s wise to invest some time establishing rapport. Just a few minutes will usually be enough, though. Stay in this step too long, and your potential buyers will begin to think you don’t care about selling them a vehicle — you’d rather just make new friends.

During this time, your goal is to help your potential clients relax with you, to like you so they’ll trust you and listen to what you suggest as a solution for their automotive needs at the end of the selling process. If you rush through this step of the selling cycle, they’ll likely balk at making a buying decision later.

Let me introduce you to a few ways you can work down their natural wall of sales resistance.

First, Always Use the Clients’ Names the Way They Give ThemIf your client introduces himself as “Anthony,” don’t call him “Tony.” Don’t call James, “Jim” or Margaret, “Maggie,” “Meg” or “Peg.” Some folks just hate derivatives of their names, so use their names as they give them. Others just go by nicknames like “Butch,” “Kitty,” “Deb” or “Bill.” When it’s time to fi ll out the paperwork, you have the right to ask for their legal names, but it’s not necessary to use any version other than what they give you at the beginning.

Next, Make Good Eye ContactThere is an old adage that if “you can’t look me in the eye, I can’t trust you.” I don’t know if that is necessarily true, but if they believe it, it is.

Find Some Common Ground Between You and ThemWe’re all human. There must be hundreds of things we have in common with nearly everyone on the planet. This can be done in various ways. It can involve talking about mutual acquaintances or a similar situation

they may bring up. At the very least, you and they are drivers on the same streets and likely live in the same area. Just fi nd something they can agree with you on that’s not about vehicle ownership early in your contact.

Something else you can discuss is a non-controversial topic. It may be the weather or a sporting event. Just make sure it’s topical. Just don’t bring up politics or religion. I always like to give a sincere compliment. If the condition of the vehicle they arrive in is excellent, they are proud of that. When appropriate, acknowledge this and pay them a compliment. You may be able to compliment them on the amount of research they’ve done prior to meeting with you. These days, people get a pretty good idea of what they want online. Coming into a dealership is more a formality or a way to see the vehicle they think they want “up close and personal.”

When you meet someone new, always smile. No one wants to be around an unpleasant person, much less go through with the time it takes to invest in a vehicle with them. Give a nice smile — you’ll fi nd people will respond to you the same way.

Be Careful About the HandshakeThere is a tendency to want to reach out and shake people’s hands. If it is a pre-

planned appointment, then a handshake is appropriate. However, if they are just popping by, a handshake may be too forward and not comfortable for the other party. By the way, there is no difference between a man’s and a woman’s handshake. A handshake should never be limp. It should be nice, deep and fi rm. No pumping; just a nice, fi rm handshake.

Pay Attention to How They SpeakWhen you fi rst start listening to them, adjust your rate, speed and volume of speech to match theirs. You don’t want to be talking in a loud volume at a fast rate if your client is a soft-spoken individual. If you’re speaking too fast, it can be diffi cult for him or her to follow your presentation which can lead to frustration on the buyer’s end.

When you have established rapport and are ready to move into the step of qualifying them as to their needs, put them at ease with an introductory statement. It might go something like this, “Let me begin by thanking you for the time that we’re going to share. Let’s consider this meeting somewhat exploratory, meaning I’d like to analyze your needs and get a feeling for what you’re looking for. Oh, by the way, I don’t think we should be in any hurry.”

The words, “somewhat exploratory” relieve pressure and help them relax. The words, “I don’t think we should be in any hurry” lets your client know that you aren’t a typical high-pressure auto salesperson. You’re there to serve their needs. Demonstrating this level of professionalism will make them comfortable with you, want to work with you and, hopefully, send you referral business.

World-renowned master sales trainer Tom Hopkins is the chairman of Tom Hopkins International. He can be contacted at 866.347.6148, or by e-mail [email protected].

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No one wants to be around an unpleasant person, much less go through with the time it takes to invest in a vehicle with them. Give a nice smile — you’ll find

people will respond to you the same way.”

“When you meet someone new, always


26

SeanV.Bradley

BE CAREFUL:Don’t Let Your Facebook, MySpace or Twitter Account Get YourDealership Into Trouble

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I recently got a call from a frantic dealer.

I asked the dealer, who’s one of my clients, what was the problem. He proceeded to tell me about a phone call he received from a disgruntled prospect.

So far, this was not totally foreign to me. I have been in the car business for more than a decade now. As a manager, I have received my share of none-too-happy people calling my store. So, I probed a little deeper into why my dealer friend was so upset. He said he received a call from a very unhappy person who said they will never buy a car from him. They came into the dealership and were working with a salesman and, after several days of working with him, they were close to making a decision.

So far, so good, right? Well, they went online and “Googled” as well as “MySpaced” the salesperson’s name and were utterly shocked at what they found. The salesperson had posted photos to MySpace literally taking hits from a bong — his page was the page of a party animal, in the very worst sense of the phrase.

This was shocking for this prospect, to say the least, who was going to entrust a major purchase to someone like this. She rightfully told the dealer that this is one of the most expensive purchases she was going to make in her lifetime, and trusting this type of

person was not going to happen. But what really hit the dealer hard was when she said she was so disappointed with the dealership because they have that type of person working there, representing the dealership. What kind of a dealership hires that type of individual?

What was the dealer to say, except “I’m sorry”? He had no idea. The woman, however, would not hear any of that. She told the dealer that she in her 50s and was not a computer savy person, but she was smart enough to “Google” her salesperson’s name! A serious business, such as a car dealership, could do the same.

What could the dealer say or do, except to feel very embarrassed and totally unprepared for this type of conversation. This was negative word of mouth advertising in the worst way, but it wasn’t from something the dealership did directly; rather it was something a salesperson did. Since the salesperson is a direct extension of the dealership, the salesperson is the dealership in the prospect or client’s eyes.

This is a true story — not a hypothetical, or a what-if. You have to be careful at your dealership. If you are a salesperson, Internet/BDC representative or anyone who represents a business in any way, shape or form, you must either:

• not have inappropriate content at all

on social media sites like Facebook, MySpace Twitter etc, or

• if you choose to have crazy things on your profi le, you must set the profi le to PRIVATE, or not for the public to see.

It is serious and important that you all understand that dealerships spend hundreds of thousands or sometimes millions of dollars to advertise and build their brand in the community, and it can all be destroyed by accident.

I doubt that the sales person in this scenario ever dreamed of a prospect seeing his profi le, being offended and contacting his boss to complain. But, she did, he lost the deal, and the dealership got a huge black eye in the community. So, we all can learn from this mistake.

Managers, create a policy in your dealership for ethics online, especially for social media. Social media is now the No. 1 form of communication for people on this planet. So, we must be careful of the image we put forth online of the dealership as well as the online image we have of all of the dealership’s employees!

Sean V. Bradley is the founder and CEO of Dealer Synergy, a nationally recognized training and consulting company in the automotive industry. He can be contacted at 866.648.7400, or by e-mail at [email protected].

&


28

PaulCummings

THE POWER OF A POSITIVE ATTITUDE

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One of my favorite quotes comes from

Henry Ford. I read it when I was doing a report with one of my kids for his fourth-grade class. He said, “If you think you can, you can. And if you think you can’t, you’re right.”

I truly believe in this philosophy and make use of it in all aspects of my own life. I believe that an accomplishment is made with 10 percent ability and 90 percent attitude. If you have the right attitude about the task at hand, there is nothing you can’t accomplish. You just have to believe in yourself and approach it with the right frame of mind.

In the workplace, attitude is extremely important. How you convey yourself to others is the way your team members and customers perceive you. If you attend a meeting with a fellow salesperson or wait on a customer and have a frown on your face, complaining and show up late, you

will be perceived to have a bad attitude about your job when, in fact, you may actually like your job. You also will not do as well at your job, even though you have all the talents and education it takes to be successful.

Another quote that comes to mind that really puts attitude in perspective is from Dennis Waitley. He says, “The winner’s edge is not gifted at birth, a high IQ or in talent. The winner’s edge is all in the attitude, not

aptitude. Attitude is the criterion for success.” Therefore, quit making excuses for yourself and start thinking like a winner!

In all my years in the automotive industry, I have seen many examples of both positive and negative attitudes. Let me share a quick story with you that demonstrates the power of a positive attitude. I was working as a comptroller at a dealership and had an employee who wanted to become a comptroller but did not have a college degree. She was told by corporate that you needed a college degree in order to

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10%hold that position. She knew a degree was out of the question because she was a single mom and she didn’t have the money or time to go back to school. She had been in the car business for many years and had a great deal of on-the-job experience. She would help me with anything I asked her to do, just to learn the job and be a team player. She always did it with a positive attitude and never complained about any task whether big or small. She knew it all mattered.

When I informed my company that I was going to resign to take time off to stay at home with my kids, they asked for my input on who should fi ll my position. I immediately suggested that they hire from within and let this woman take over my job. They, of course, brought up the point that she did not have a degree and said it would not work out. She had an incredible attitude at work, and never said “no” to anything you would ask her to do. She was defi nitely a team player and wanted the job. After much debate and several interviews with other candidates, they fi nally gave in and said they would give her a chance. She has been in that position for 10 years now and is still doing a great job.

This story just reaffi rms the fact that attitude is important. She doesn’t have the same education as a lot of comptrollers, but she was willing to work with a good attitude, and accepted that it wasn’t going to come easy. It took a lot of hard work, determination and a great attitude to accomplish her goal. It just goes to show you that if you believe you can, you can.

Paul Cummings is president and CEO of Paul Cummings Enterprises. He can be contacted at 866.865.3171, or by e-mail at [email protected].

ABILITY

contacted at 866.865.3171, or by e-mail atattttttttt [email protected].

90%“I believe that an accomplishment is made with

If you have the right attitude about the task at hand, there is nothing you can’t accomplish.”

ATTITUDE

As 2009 comes to a close, many will

breathe a sigh of relief having endured the diffi culties of the past year. Certainly there were challenges for everyone associated with our industry. Some brands like Kia, Hyundai and Subaru experienced entirely new levels of consumer acceptance, while other brands struggled for their very existence.

It is important to understand the past to prepare for the future. Our industry is more than 100 years old and many of the import brands have celebrated their 40th and 50th anniversaries in the U.S. market. So what has changed, and what continues to endure over time?

Clearly, technology has played a role in consumer behavior. We have developed into a society that has grown so impatient that we place cups of instant coffee into a microwave and have the audacity to stand there tapping our fi ngers on the top of the appliance willing it to accelerate the process. (Guilty parties need not confess. You know who you are.)

All of the data available indicates that the vast majority of buyers will use technology via their phones and/or their computers to assist them in the process of purchasing a new vehicle. While this behavior is well documented, does this one dynamic then govern the rules of the game? Well, yes and no.

Yes, your sales process cannot ignore the fact that consumers will often choose to contact your dealership using the telephone or e-mail. So does this mean the conventional sales model of the “Road to the Sale” has become obsolete? No, it does not. This fact was refl ected in a 2009 Automotive Industry Report conducted by Deloitte,

which stated that “only 4 percent of total car sales in the United States take place online.” How are we to interpret this data?

Many consumers, myself included, have a threshold on how much money they will spend sight unseen for a product. Purchasing small electronic devices like a camera or digital music player are decisions easily made due to the small size of the item and the relatively low cost (a few hundred dollars) for the device.

If you think about it, we all have a dollar amount where we just don’t feel comfortable purchasing an item sight unseen, regardless of the 100-percent return policy. Based on the Deloitte study, clearly purchasing a $30,000 automobile sight unseen falls in this category for the vast majority of the population. Even if the current number were to double in the next few years to 8 percent, this still means more than 90 percent of consumers “prefer to see, touch and test drive their car before buying.”

Realizing that, in the end, people buy from people, your core selling skills and product knowledge will be the necessary tools to succeed in 2010 and beyond. Your customer must feel that you have their best interests in mind, not that you’re just trying to sell them something. In the end, they need to like and trust you in order to make a decision to do business with you.

The often-discussed formula of “4 Ups to 3 Demos for 2 Write-ups to achieve 1 Sold” will still serve you well. The key is to expand this formula to include activities you measure to achieve the four ups. Following the formula above, in order to sell 10 units you will need to have 40 face-to-face encounters in the showroom to produce the desired result at month’s end. The question you must ask yourself is will the 40 ups (approximately two per day) show up automatically based on your current fl ow of fl oor traffi c? For most people, the answer is “no way.”

This means you will need to establish benchmarks and targets for activities that will supplement the difference. For ease of conversation, let’s say that the dealership can provide you with half of the ups needed (20) to achieve your unit goal. This will leave you with a target of 20 extra people to get into the showroom.

Realizing that not every appointment you set will actually show up at the store, what level of conversion should we use? While I accept that each salesperson’s skills will vary, applying an appointment show rate of 50 percent seems reasonable. (Feel free to adjust the number up or down as needed.) With a 50 percent show rate you will need 40 appointments, or approximately two appointments per day, to secure 20 additional ups in the showroom. This will bring the ups count to 40, allowing for the sale of the 10 units.

The next variable to consider is how many outbound communication attempts will be needed daily to secure the 40 appointments? E-mails may be used as a substitute for telephone calls to achieve your daily activity target. Keep in mind that not every outbound telephone call or e-mail will produce a call back or a response. This is where you will need to work with your managers to develop and track results from the group’s outbound activities to help establish the conversion rates for your store. Hopefully, your CRM can do most of the heavy lifting.

With the data in hand now, you should be able to set a minimum number of daily appointments at one or two per day, with the understanding that, to achieve that outcome, it may require as many as 40 or 50 outbound calls and/or e-mails daily to supplement your fl oor traffi c.

This would create a new model that might look like this: 1,000 outbound telephone/e-mail communications per month (50 per day for 20 days) should produce 100 conversations, or 5 per day. This should yield 40 appointments and, at a show rate of 50 percent, this will provide the 20 additional ups needed to supplement the current fl oor traffi c to reach 40 face-to-face opportunities. The old model then applies: 30 demos to get 20 write-ups to sell 10 units. Low tech meets high tech. Now the past can be updated to account for the future.

Good luck and good selling. See you in Orlando at NADA.

Kirk Manzo is the president of The Manzo Group. He can be contacted at 800.858.6903, or by e-mail at [email protected], or by e-mail at [email protected].

KirkManzo

SALES FORMULA 2009sale

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32

GeorgeDansle

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DECIDE THAT WHAT YOU ARE DOING IS REALLY WHAT YOU WANT TO DO

Decisiveness is the founding point of

achievement. Being wishy-washy will never lead you up the success ladder. Make a decision today that what you are doing is what you really want to do. Too often people can’t decide and they want to keep their options open. Some people still need a security blanket in life. Let go, grow up, be the man or woman and grow on in life.

Most people just seemingly never grow up. They allow their issues to have issues and live a life with their hurts, hang-ups and hates. How many times have you heard people say, “Oh, I had a rough upbringing.” Who cares? Let it go! Most of us have what it takes, and it’s within us to be as successful as you want — all you have to do is go after it. If you are waiting for something better to come along, then most likely you will miss out. I call those people “hold outs.” They play the waiting game and just seem to stand on the sidelines while life is passing them by. It reminds me of

the old saying, “If you are killing time, you should be arrested for murder.”

Be humble when it comes to change. Most people hate change and would rather take a beating then change, though most people wish they had more change in their pocket. Have an open mind to listening to new but old ideas. If your purpose is to be successful, then you will probably need the help of others to achieve your goals. Don’t be afraid to ask for help when it comes to growing in your life and sales.

I am a motivator; my job is to motivate people to live a life of their passion, goals and dreams. Motivation is an inside job, and the best way to stay motivated is to keep your goals in front of you. That is why the windshield of life is big, while the rear-view mirror is tiny. Who cares what was? We need to focus on what is. The word “focus” has a few different meanings:

If you are the dealer or a manager, read this article to your team, get them excited

to serve and sell again. Everybody needs a pump up; we shower everyday, but we hardly take any time to cleanse our mind or hit the “refresh” button. You can either go through life or grow through life. It’s your choice. If you have a bad attitude, it’s your choice; if you are poor, you choose to be poor; if you aren’t a good leader, it’s because you choose to.

I can give you one great tip on leadership: Use common sense and treat people well. Everybody in life is looking for two things — love and respect. How can you go wrong with that?

George Dans is the chief motivational offi cer for the World’s Greatest Closer organization. He can be contacted at866.861.5169, or by e-mail [email protected].

F FaithfullyO OnC CourseU UntilS Successful or Sold

Have you ever felt like you were mak-ing little mistakes that are costing you tons of money at your dealership? Do you feel like there are hidden profi ts in your dealership that are just waiting to be uncovered? If you are like most dealers, the honest answer is, YES, Absolutely!

It’s a shame for YOU not to make more money, when these dealers do it so easily…

Our association with Tewart En-terprises has been nothing short of extraordinary. Our sales volume increased over 30% in the fi rst sixty days of implementation. More importantly, our sales gross in-creased an average of over 68% over the fi rst fi ve months of imple-mentation. The bottom line result was an increase of over $350,000 net to the Dealership Operation. I have used many sales systems over the years and none of them have ever provided the success that we are experiencing with the Tewart System.

Walter Alfaro, GM Perry Ford

Our grosses went up 30% on the front end, and we added almost 50% in the back end. The best part of that is that our sales also increased over 25% and continue to increase.

Gary Minneman Jr, GMSunshine Toyota

Working with Tewart Enterprises is different from other consultants and trainers. We are getting results with very satisfi ed customers. In addition,

Tewart Enterprises Inc is helping us to make our entire business more sound. With years of successful ex-perience, this team is innovative and up-to-date presenting fresh ideas to keep up with our ever-changing business. I would recommend Tew-art Enterprises Inc. to anyone who wants to improve their business.

– Doug MathersRusswood Auto Center, Lincoln, NE

My name is Mark Tewart and I am the President of Tewart Enterprises Inc. For almost two de-cades I have been helping dealers fi nd hidden prof-its and correcting little mistakes that were costing those dealers hundreds of thousands of dol-lars. These almost-magical solutions turn little mistakes into instant cash machines of bottom-line profi t.

Because I have not met you and do not know anything about your dealership, I can’t say how much money is being left unrealized at your dealership. However, I can say FOR CERTAIN that the number of dollars is substantial and would shock you, if you knew.

There are a few things that every dealer should be doing to make money, especially in this economy.

The Great News is that I have identifi ed those little mistakes and have big solu-tions for them. NO BS, just real measur-able results that start happening immedi-

ately and I guarantee those results.

• Sell more vehicles without spending $1 more on advertising• Increase your gross profi ts any-where from $300 to $800 a vehicle• Make an extra $100,000 or more in your service profi ts in 90 days or less• Double and even triple your sales and service customer retention• Double your appointments and sales conversion from Internet leads, Web site leads, third party leads • Increase your F&I Product pen-

etrations by 25% immediately• Discover the one secret that will make your dealer-ship an additional million dollars or more over the next fi ve years — We have several clients who have

already experienced this and it will make the hair stand up on your neck when you hear this.

Call 888 2 Tewart (888 283-9278) or e-mail [email protected] to schedule a private and confi dential interview.

***We will share candid and specifi c information that will prove to you with-out a doubt what I am saying is true. You will see real dealer examples that support these results. Because of time constraints, there will only be a limited amount of dealers accepted into this program.

P.S.: Please, only Dealers or General Managers may respond.

There are a few things that every dealer should be doing to

make money, especially in this

economy.


34

MattBaker

WANT A ‘GOOD DEAL’?FOCUS LESS ON PRICEAND MORE ON OUTCOME

marketing

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It’s that time of year again. Thanksgiving

is just around the corner, marking the start to yet another fi nancially, emotionally and physically demanding holiday season. When adding this to the enormous stress brought on by our gloomy economy, who has time to plan for 2010? Chances are, not that many.

Now I know “planning” is a bit of a dirty word in the auto industry. And, for a period of time, I couldn’t have agreed more. Focusing today on a strategy for tomorrow always seemed like too big of a task, requiring time (and, in some instances, patience) I didn’t have. But, after making a few bad decisions in the heat of the moment, I have learned that simply fl ying by the seat of my pants does not ensure smooth sailing. In fact, in my efforts to push off planning, I’ve passed up some amazing opportunities to grow my business, ultimately costing me valuable vendor relationships and a lot of money in the long run.

So how do you stay clear of making the same mistakes? Yes — it involves prior planning, but believe it or not, it won’t be as bad as you may think. This article focuses on the mistakes I’ve made when it comes to building a business strategy, in the hopes you can learn from what I’ve done wrong — before you make the same slip-ups yourself.

Focus on Tomorrow’s Outcome Over Today’s DealYes, almost everyone has a budget, requiring many of us to concentrate more on staying within our cost-cutting boundaries than we do on the outcome we want. Over the years I’ve had many salespeople call me to pitch their latest and greatest. And, too often, I focused more on how much of my money they wanted than what they could do for me in the long run. By being stuck in this deal over outcome mindset, I’ve managed to pass up some really creative ideas, and in turn watched available

market share get gobbled up

by more ambitious competitors.

While getting something for a cheap price may be exciting, it means squat if what you purchase provides no true value over time. The trick to keeping your budget in balance is keeping your business in balance. That means you must weigh the benefi ts that come from meeting your needs just as heavily as you weigh your costs.

Let’s say a dealer is talking to a direct mail vendor and decides to pressure the sales rep on price instead of focusing on an aspect that could convert more prospects into buyers, (I’ll admit that I, too, am a culprit). Over-negotiating with the sales rep ultimately puts the dealer and the vendor at odds. Working against each other like this decreases the probability of achieving either party’s goals and increases the possibility of vendor underperformance. Instead of getting a solution that will truly solve their needs, the dealer receives a “bargain basement” deal that returns little traffi c and/or profi t.

Now I’m not saying you should let vendors make as much money as they want. Just be cautious of what effects over-negotiation can have on outcome. Your goal is to get the vendor working for you, with your best interest in mind; not to get the cheapest product they can sell you just to get your business. Unfortunately, this happens more than you want to know.

Long-Term Commitment Pays OffI was recently talking with a friend who’s a dealer on the West Coast. He had been working with the same direct mail company for quite a number of years and was happy with their work. However, a slip-up in one of their recent campaigns caused the dealer to fi sh for a new company who could provide a similar service at a much lower price. While decreasing his costs in an effort to increase his profi ts seemed to make sense, the outcome of the new direct mail company’s campaign was quite different than expected. He continued to swap out companies six or seven times, and eventually gave up after

realizing he had spent more money testing vendors than those vendors had helped him make. Had this dealer stuck with his original direct mail company, he would have likely gotten a better deal and a more positive long-term result.

Sound familiar? Many, if not all, of us are guilty of leaving at least one established vendor relationship simply because someone else’s deal seemed a little sweeter. But continuously bouncing from one provider to the next often leads to more problems and less profi t. While this dealer’s original direct mail vendor admitted to making an error, don’t overlook the fact that everyone is capable of making a mistake. What if someone in your dealership “accidently” sold a car for less than you thought it was worth? Would you immediately fi re them? If that employee had a good track record prior to this mistake, chances are you wouldn’t. How we treat our vendor relationships should be no different.

Of course, the benefi ts of establishing long-term commitments with vendors aren’t limited to direct mail. Take TV and radio companies, for example. For those willing to stick with the same media provider over an extended period of time, the better chance you run of getting the same spots at a more cost-effi cient price.

Although the task of planning for the coming year sometimes causes dealer’s heads to spin, understand that the more you rely on and build upon your vendor partnerships, the easier the planning becomes. Learn from my mistakes. In November and December, challenge your existing vendors to make a plan for 2010 for your store. You’ll probably end up with a better deal and a better outcome.

Matt Baker is the vice president of sales for G&A Marketing. He can be contacted at 866.618.8248, or by e-mail [email protected] 866.618.8248, or by e mail [email protected].


36

Protective is seeking a Divisional Vice President – Sales within our Asset Protection

Division responsible for the Northeast Region of the U.S. Excellent opportunity within

an industry-leading company providing financial security through our suite of F&I

products. Candidate must be able to manage dual distribution sales network; manage,

mentor, coach recruit & train a direct employee sales force; capable of delivering

annual revenue & profitability improvements; recruit and manage an independent

agent distribution network; develop client accounts; create new client relationships;

administer regional affairs. Candidate must possess 5-7 years sales mgmt. exp. in an

auto environment; bachelor’s degree preferred & strong focus on customer service.

Have excellent listening, oral & verbal communication; negotiation/conflict resolution;

problem solving, presentation, organization & planning skills. We offer a comp.

salary with unlimited income potential; 401k w/matching co. contribution; cash based

pension; medical/dental/vision.

For more information call 866.478.9241 or visit www.protective.com/jobs.asp

Do you remember when listening to

music meant browsing through vinyl at the record store, being careful not to scratch the LP when putting down the needle, or turning the radio dial to fi nd a clear AM or FM station? How about always carrying a dime for the pay phone, spending an evening answering letters or looking at the family’s encyclopedia or reading newspapers and magazines to fi nd information?

Today, much of this has changed. Music, movies and even television are delivered via the computer or mobile devices. Cell phones, e-mail and social networks have become ubiquitous means of communication. The Internet has virtually replaced all other avenues for research and information delivery; even newspapers, as well know them, will be gone soon. Yet even though the way we engage is new, the basics remain unchanged: we listen to music, watch movies and communicate with others.

The automotive business is no different. The ways we reach, interact and communicate with customers have changed; but the art of selling has not. In fact, virtually everything except the way people sell and buy has been replaced with something new. Ultimately, every customer still comes into the dealership to drive and buy from a salesperson.

AttitudeSalespeople and sales managers can buy-in to the negativity blasting Americans from every angle, or they can actively sell cars. Unfortunately, in virtually every dealership across the country, salespeople have stopped selling, managers have stopped managing and dealerships have stopped thriving. We increasingly see one of two things happening: Salespeople and managers push so hard that customers are intimidated into non-action and can’t make a decision, or customers aren’t given the option of becoming a be-back — it’s buy now or nothing. In essence, they’ve abandoned the basics — blocking and tackling — and

adopted a negative attitude that has become a self-fulfi lling prophecy. Words that kill deals before they start — “no,” “don’t,” “won’t” or “can’t” – have crept into the team’s vocabulary, helping to put the brakes on your success. Nurturing a positive attitude is essential for any dealership seeking a portion of those sales.

We live on an information superhighway that has changed the way we do business. Today, the only two things customers can’t do without coming to the dealership are drive it and buy it — regardless of how much research is done online. While it’s crucial for dealerships to make use of every opportunity and tool to reach prospects and get the information they need to spark interest, the goal of all these tools should help you to bring traffi c to the dealership.

What’s Your Job?A sales manager’s job is no different today than it was 20 years ago: to help salespeople sell and customers buy a car. It’s not simply to sell cars. There is nothing in a dealership more important than taking care of customers and closing the business that is standing in front of you. A salesperson’s job is to be a selection specialist who helps customers choose the exact car that fi ts their individual needs. Projections should be a salesperson’s focal point, his or her daily roadmap, for helping a customer select and buy a car. When focusing this way, salespeople take a different approach:

Ask specifi c questions that are direct, but non-confrontational or pushy, and that draw out specifi c information that builds on the salesperson’s ability to move the process forward. Find out how the customer intends to use the car — work, recreation, etc.

Learn what the customer’s true preferences are for style, comfort, color, etc., and what they like and dislike about their current car. They behave like selection specialists.

Listen to the customer’s responses. This is the most important, and often the most

neglected, step in being a selection specialist. The attentive salesperson knows when a customer has truly selected a fi nal vehicle; only then can they move to the next step.

Find the right car — the one that meshes with the customer’s preferences.

Move to an introduction — hood, trunk, demo drive. This is all part of the selection process.

If you try and sell a customer something they don’t like or want, you end up with nothing. The key is proper selection. When salespeople remember that their job is to help buyers fi nd the right car, “now” becomes irrelevant. If the customer doesn’t have all the information needed to decide, then, how can the customer buy “now”? Whether a buyer completes a deal today or next week doesn’t matter; what matters is that they buy, and buy from your dealership. Given that, if buyers want to consider their purchase, the salesperson must gain enough information before the buyer leaves to maintain contact, especially in the fi rst 72-hours after the visit. Minimally, the salesperson should collect and record standard, detailed data; present the best possible deal on the car the buyer wants before they leave the store; develop and execute a follow-up plan designed to bring the buyer back to close the deal. This approach enables the salesperson to get the deal, and positions him or her to generate additional revenue and referrals.

Wherever there is a problem, there has to be a solution. Relying on the basic art of selling — the one constant in our business — will enable dealerships to capture market share away from competitors who only focus on closing the deal now. Always remember: A salesperson’s job is not to sell cars, but to help customers buy them.

Richard F. Libin is president of APB-Automotive Profi t Builders, Inc. He can be contacted at 866.450.6853, or by e-mail at [email protected].

RichardF.Libin

THE ONLY CONSTANT IS THE ART OF SELLING CARS: TRAFFIC COUNTS, ATTITUDE AND BASICS

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Do you want to be a part of one of the fastest growing software companies in the retail automotive market? vAuto’s pricing, appraisal, stocking and merchandising tools are an evolutionary step forward for used car departments.

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I love my old classics.BUT I’VE CHANGED MY OLD HABITS

with vAuto—and transformed my dealerships.

Other software is made to look like vAuto. But nothing else works like it.

Forget 60 days. Dealerships using vAuto are regularly turning used cars in under 45. Proof positive

that vAuto empowers you to achieve new standards. Live market data becomes investment insight.

Extreme turn drives record profits. This is the formula for used car success in today’s market.

And vAuto — the software, the people and the vision — is the only solution that can deliver it.

— Gary Duncan, Dealer (and Classic Car Collector) Duncan Automotive Network Roanoke, Virginia

#%

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with vAuto

before vAuto

Duncan

Automotive Network

% of used vehicles sold

72% increase

AutoSuccessNov09

Economy & Finance

Transcript of AutoSuccessNov09