march 2005 autosuccess

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March 2005

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A record breaking number of Dealers stepped up to the BZ booth for a �Free Virtual Test Drive� and a quick demo of the system that is helping dealers sell 80 to 700 additional units each month. Many dealers left the booth with a free eCRM business plan and tickets to the Superbowl. Others came to the booth asking why 8 of the Top 10 eDealers for 2005 use BZ Results and what the secret to their success is. Dealers were excited to learn more about the technology and training that is helping dealers like UAG, Herb Chambers, Red McCombs, Sheehy, Courtesy Chevrolet, Paragon and Tasca Þ nd more quality trafÞ c, sell more cars and keep a higher percentage of their customers loyal to sales and service. The BZ Results team answered questions about the new ad tracking tool and virtual phone manager to show how these tools can be incorporated into a dealer�s current advertising strategy to increase trafÞ c and lower cost per sale. When asked what�s most important to them, many dealers talked about Þ nding an alternative to the increasing costs and decreasing returns of traditional advertising mediums. These dealers are signing with BZ Results to not only sell more cars, but also to lower costs and bolster the return on their advertising investment. After all, with less than 30% of today�s shoppers referring to traditional advertising mediums (TV, radio, outdoor and print) and almost 80% preferring to use the Internet to do their automotive research, it�s just good sense to make the move to digital marketing and start Þ shing where the Þ sh are.

� BZ ResultsJ&L Marketing�s booth at NADA 2005 in New Orleans was overß owing with dealers making the decision that the J&L Growth Strategy was the right marketing direction for their dealership. By investing just a few minutes of their time, dealers across the country were introduced to a Growth Strategy that increased their customer base, increased the average dollar amount each customer spends, and increased the frequency that their customers bought from them. The big difference between what everyone else is selling, and what J&L Marketing was offering is that the Growth Strategy is not just a one time sales promotion. It is an ongoing advertising approach that includes weekly advertising strategies as well as high impact sales promotions. The secret is how they work together, taking advantage of marketing leverage. They offered case studies of Johnson City Honda, a dealership that followed the Growth Strategy precisely, and showed how, in the dealership�s Þ rst four months of following the strategy alone, they increased sales by 85 units per month (that is a 75% increase), and increased the gross average by $1,300 per unit sold. It is this highly strategic planning and incredible results that has set J&L Marketing apart for 14 years.

� J&L Marketing

The NADA Conference in New Orleans, LA was a huge success for Þ rst time exhibitor American Auto Exchange, Inc. (aaXchangeTM). aaXchangeTM, a three year old company, has evolved this year to offer many new products to dealers. The response received from many dealers attending NADA was exciting and positive. aaXchangeTM gave presentations on their signature Vehicle Management System (VMS) to dealers representing over 1200 dealerships, while introducing the latest applications of abX, DealerBasics, New Car Modeling and the newly announced SmartLaunchTM, integrated intelligence based on eBay market data. �We are pleased with the response Dealers directed to all of our new products, especially our signature VMS System. aaXchangeTM is introducing new and exciting applications, which will help dealers revolutionize the way they operate their business�, said Bruce Thompson, Chief Executive OfÞ cer of American Auto Exchange, Inc. �It was thrilling to watch our company�s projected sales goal surpassed during NADA�. American Auto Exchange, Inc., headquartered in Dallas, TX, provides technology solutions for new and used vehicle inventory management. aaXchangeTM was founded by industry veterans, knowledgeable about every aspect of the day-to-day operation of a dealership. Technology-based and innovation-driven, aaXchangeTM is distinguished for its customer-focused approach. With over 1,500 franchise dealerships in the used vehicle space, aaXchangeTM continues to lead the inventory management space with innovative features. aaXchangeTM is earning their reputation, one dealer at a time and is building a rapidly growing customer base throughout the nation.

� American Auto Exchange

� DealixAt NADA this year, some of the most popular workshops focused on helping dealers hone their Internet sales skills. Two in particular, �Increasing Your Pre-Owned ProÞ ts,� presented by Kevin Root of The Cobalt Group, Inc., and �The Roadmap to Internet Sales and ProÞ ts,� presented by David Kain of Kain Automotive and Dean Evans of Dealix Corporation, drew standing room only crowds, even on Monday, a traditionally slower day for NADA workshops. �The popularity of these workshops underscores the fact that dealers are no longer wondering if they should tap into the Internet sales channel, but how they can do it better,� said David Kain. Both workshops offered tactical strategies for everything from marketing speciÞ c vehicles online better, including taking proper photographs; to scheduling email campaigns and types of templates to use; to measuring lead provider, Web site, and ISM performance. Adding to the tactical advice from Root, Kain, and Evans (all of whom are auto industry veterans in their own right), were lively post-presentation discussions with dealers in the audience, who shared war stories on how they�ve used the Internet to boost sales and proÞ ts. Attendees ranged from dealers who have been selling cars via the Internet since 1995 (the birth of the automotive Internet) to dealers who were still testing the waters before scaling back on their newspaper budgets.

� ProResponseNADA 2005 was the most eventful show for ProResponse since they began attending in 1998. In addition to seriously interested Þ rst time visitors, they were humbled by the amount of dealers and managers coming by that were escorted by current ProResponse clients. ProResponse has always prided itself in delivering what the dealer wants, not what the vendor thinks they want. Their dedication to customer service seems to have netted them a lot of referrals showing up at their booth. Interest ranged from ProResponse�s sales and service CRM solutions to their sister company, InTouch Marketing�s Precision programs which uses data mining to determine speciÞ c customers and prospects and then market to them using the latest in variable data print and e-mail campaigns. They have strategic alliances with Who�s Calling, Call Source, Call Bright, Call Command and others. This cooperation results in increased sales and decreased advertising costs because every phone and ß oor opportunity is addressed every day. The show proved to be an excellent opportunity for ProResponse to strengthen already existing relationships with Chrysler�s 5 Star Team and General Motors. GM will rollout their new CRM (Dealer World) which will interact with ProResponse�s systems to provide marketing opportunities and information sharing to GM Dealers. Many visitors were interested in ProResponse�s Spanish Services. They are the only CRM tool that can provide consistent follow-up and target marketing to the Hispanic market. Canadian Dealers were surprised to Þ nd that their services are available in French also. ProResponse has continued to grow each year and this NADA Show has 2005 looking like the best year ever.

� AutobaseVendors to the automobile industry had tremendous success at this years� NADA convention. Autobase, Inc. was one such company. Attributing their success to a strong team with a strong product suite, the Autobase representatives not only exceeded their goals, but also surpassed previous show sales signiÞ cantly. Autobase, Inc. left New Orleans extremely pleased with the rollout of Autobase Sales Center 6.0, their award winning CRM application. Additionally, they were very pleased with the phenomenal response to their new offering for business development centers, the Autobase Loyalty Center. Beyond these, Autobase once again featured their CRM Enhancements, which allow a dealer to tailor-Þ t the CRM application to his unique and speciÞ c needs. As in past years, CRM once again was a special focus for auto dealers at the NADA convention. Autobase, Inc. claims that CRM is a critical component in the successful operation of any business, particularly an automotive dealership. As customer expectations for services and quality continue to increase, it is critical for a dealership to monitor and manage expectations while looking for additional revenue opportunities. Among a growing competition, Autobase, Inc. continues to achieve record breaking sales because of their simple strategy, employed since the company began in 1988: to produce feature-rich, purpose-driven solutions that are built on the fundamentals of the industry�s time-tested selling process.

NADA 2005 ADA 200TOP 10 BEST OF THE BESTP 10 BEST OF THE BE

N E W O R L E A N S

The WolÞ ngton Group took a different turn this year at the NADA show. Instead of having the same old marketing booth, they decided to have a hospitality area where their current clients and business partners could come and relax. Being a relatively small Þ rm with just over 100 employees headquartered in Augusta, Maine, they experienced incredible growth in the calendar year of 2004. This growth has been fueled by the support and accolades they have received from their present dealers, as well as referrals from 20 groups. With limited dates available even for existing dealers, the decision was made to provide a �hospitality� booth as opposed to a �marketing� booth this year. As it turns out, the decision was a wise and valuable one. The business had grown and expanded so quickly in 2004 that they had not had the opportunity to really get to know many of their new dealers across the country. New Orleans provided the venue to meet face to face with the Dealer Principles who have been so instrumental in the growth of The WolÞ ngton Group. Sometimes, in this full throttle environment it is easily forgotten how important it is to say �Thanks for another great year!� NADA New Orleans provided just what the doctor ordered. Harry WolÞ ngton, President, summed up his approval with New Orleans �The WolÞ ngton Group anticipates another pleasant surprise in Orlando.�

� The WolÞ ngton Group

TrafÞ c at the TimeHighway.com booth was brisk and interest in this on-line service scheduling solution was high. Many dealers indicated their current solution � a �request for appointment� - was ineffective, as the customer still didn�t have a conÞ rmed appointment until someone at the dealership responded to them either via email or telephone. They were interested in the fact that TimeHighway.com drives trafÞ c to their Web site and reduces in-bound telephone calls. Dealers also seem to be recognizing that taking telephone calls for service appointments is not the most effective use of their service advisors� time. They were very interested in the fact that not only does TimeHighway.com allow their customers to visit their Web site and make a conÞ rmed service appointment, but it also �load balances� their service bays and increases their service department efÞ ciency and revenue. Because of the ability to load their services, service duration and service depth, it simpliÞ es the appointment process to the point that anyone at the dealership can take the incoming call and book the service appointment for the customer. Also of interest was the fact that the customer automatically receives a conÞ rmation email, a courtesy reminder email and a completion CSI email. This relieves someone at the dealership from having to make these telephone calls.

� TimeHighway.com

The Ultimate Warranty team kicked off the show by unveiling a brand new exhibit and a brand new look. Covering 900 square feet of space and towering 16 feet over the convention ß oor, the exhibit made a dramatic statement about the company and its success. The company showed dealers one road to proÞ tability, compliance, and customer satisfaction in F&I. Not an easy task by any means, but Ultimate Warranty is proving through its clients that is has a solution. Adding to its already productive presence at the show, Ultimate Warranty Corp. announced their new strategic technology partnership with NAT, Inc. Among other projects in the works, Ultimate Warranty incorporated the NAT �best of breed� menu selling application into its product portfolio. With features like automated vehicle qualiÞ cation and rating, forward/backward DMS integration, and guidelines for regulatory compliance, the system is unsurpassed. Demonstrating the power of this new menu selling application, Ultimate Warranty received some great feedback. Dealers were impressed with the level of functionality and resources supporting the menu system. The system proved to be the most powerful menu software on the show ß oor. Dealers were further enticed when they learned that Ultimate Warranty would provide this useful technology to each of its clients at no extra cost. Ultimate Warranty showed the world that it is building a new breed of service contract providers. By leveraging strategic partners and utilizing competitive advantages, Ultimate Warranty is redeÞ ning what it means to service a client. Ultimate appears to have its goal of being a total solution provider well at hand.

� Ultimate Warranty Corp.

� The Joe Verde GroupWow, what another great convention. Lots of people, lots of excitement and lots of potential uncovered in the workshops, especially those presented by the Joe Verde Group. Joe Verde and one of his trainers, Sean Gardner, held a total of eight action packed workshops again this year. Joe is known as the guru of Sales and Sales Management and has spoken at the Convention almost every year since 1990. As usual, Joe was talking about the potential this business really offers anyone serious about growing each year. His workshop focused on whether a dealership is Market Driven or Management Driven and on the tremendous difference in returns in sales and proÞ ts. And most important, he reminded everyone they aren�t really competing with the other dealerships in their community ... only with the Management Skills and direction at the other dealerships in town. Joe keeps everything simple and logical ... that plus his enthusiasm and the fact that he�s grown his own business for 20 years straight, makes everyone realize the true potential they have in their own lives and in their dealerships. Sean�s class was one of the most inspiring classes that connected directly with what Joe was talking about, too. His focus was on Listening ... to customers, to your employees and especially in the selling process to cause more of those sales to happen in your dealership. These two trainers are deÞ nitely at the top of this game and if you missed either of their programs, you can order their video tapes directly from NADA by calling 800.241.7785.

The NIADA.TV Television Network has responded to popular demand and is now featuring LIVE PROGRAMS and LIVE SPECIAL EVENTS!

• Over the next several months, you won’t want to miss any of these great programs, so mark your calendars and stay tuned to NIADA.TV.• Live programs and Live Special Events will also be rebroadcast several times before becoming regular programs on the Education

Channel or placed on the Member Channel.• Live events are free to members, subscribers, and to anyone within the industry who logs onto the network at www.niada.tv during

live broadcast times.

WEDNESDAY, MARCH 9TH 2-4 pm Eastern Standard Time (EST)“The F&I Department: Products, Practices, Paperwork”

NIADA General Counsel Keith Whann shows you some common F&I Department mistakes that could cost you a bundle, or worse,land you in court. Taped before a live audience in Kansas City, this seminar will give you helpful tips and one of a kind insight into howto avoid some of the biggest mistakes in the F&I Department.Rebroadcast on March 15th and 19th beginning at 9am Eastern Standard Time (EST) for 24 hours

THURSDAY, APRIL 21ST 2-4 pm Eastern Standard Time (EST)“Legal and Regulatory Issues Facing Dealers Today”

An open forum broadcast before a live studio audience of dealers in Columbus, Ohio. Hosted by Keith Whann and facilitated byMichael York, NIADA.TV’s Chief News Correspondent, this program will focus on various legal and regulatory topics and issues facing theautomobile industry. Tune in to hear Whann’s analysis and answers to some of the biggest legal questions facing automobile dealers today!Rebroadcast on April 23rd and 26th beginning at 9am Eastern Standard Time (EST) for 24 hours

WEDNESDAY, JUNE 8TH 1-4 pm Eastern Daylight Time (EDT)“2005 NIADA Convention General Session”

If you are unable to attend the Convention, this is your chance to see the opening session of NIADA’s 59th Annual Convention andExpo, broadcast live from the Westin Peachtree Plaza Hotel in Atlanta, Georgia. The event begins with an association update given byExecutive Vice President/CEO, Michael Linn, to be followed by a Keynote Address from Michael York entitled “Becoming Uncommon inToday’s Economy.” The session wraps up with the NIADA Legal, Legislative and Regulatory (LLR) Open Forum hosted by Keith Whann,General Counsel, along with LLR Committee Members.

FRIDAY, JUNE 10TH 8-10 pm Eastern Daylight Time (EDT)“NIADA 2005 National Quality Dealer of the Year Awards”

Here’s a chance for a front row seat to the 2005 NIADA National Quality Dealer of the Year Awards, broadcast live from the fabulous Peachtree Ballroom at the Westin Peachtree Plaza Hotel in Atlanta, Georgia. This great event will honor past award recipients,highlight this year’s nominees from around the country and present the 2005 National Quality Dealer of the Year. This is one night youwill not want to miss!

EXPOSEDAuto Dealer Speaks Out and Reveals the Raw Truth about That �Consultant �Trainer,� Mark Tewart,

Who advertises in this Magazine All the Time.

This guy, Mark Tewart promises all sort of things to us car dealers � sales and management strategies for our dealerships that he �promises� really pay off. Such as strategies that will increase sales without increasing your advertising. Ways to increase gross proÞ t by $200 a car minimum. How to reduce and eliminate water in used cars and so on. Every time I read one of his ads, I thought, �Who could be dumb enough to fall for this guy�s rap?� Now, I�m going to tell you the raw truth about this guy and his �success secrets.�

My name is Chad Hawkes; I live in Oklahoma with my wife and child. I went to college here and became a salesperson at a car dealership. I was a struggling salesperson with little direction and not much of a future if my results stayed the same. I didn�t know what I was doing and was frustrated everyday with the business. I needed a change and I needed it quick.

One day our dealer hired a consultant and trainer named Mark Tewart who ran all these ads with these big claims. However, our dealer told us he had known this Mark Tewart guy for several years going back to when he was a new manager at another dealership. Our dealer told us to hang on to our hats because this guy Tewart was a Þ reball with more real valid information on success in the car business than anyone he had ever seen and that he wouldn�t have become a dealer before he was 30 years old without Mark Tewart.

Most of what he taught us was so different from what we had ever seen, heard or been taught by other so-called experts. As we listened to Mark�s information, we saw a whole different way to develop a high income career rather than just make a sale here and there. We heard sales skills, people skills and life skills and found freedom from the cheapest price, roll around in the mud, bait-n-switch ugliness. Best of all we learned actual skills to reengineer our business (managers and dealer as well as salespeople). I even looked in the mirror and saw Chad Hawkes differently. So, skeptical and grateful at the same time, we left the workshop with a workbook and CD�s full of ideas.

The next day I began to implement 10 different Mark Tewart strategies. Over the next couple of weeks, as I got them up and running, they all surpassed my greatest expectations. Let me give you an idea of what I am talking about. My Þ rst year of implementing Mark�s strategies, I became the number one salesperson and my production tripled. I began to get my life in order as well. Every time Mark came to the dealership he taught me lessons that made my whole life change for the better. After a period of big increases, I was promoted to manager and attended Mark�s Management workshops. Once again, I was amazed at how much incredible information I got and how much it improved our dealerships sales and proÞ ts. Our little country dealership, located in an economically challenged area had improved from 40 units a month to over 325 units and we had become on many months the largest dealer of our brand in the state!

Personally, I went from struggling to winning. I became the General Sales Manager and then bought my own dealership and now own two dealerships before turning 30 years old. How, you ask, could such a thing happen? The answer, simply, is learning how real proven and effective sales and management systems work, from the �master�, Mark Tewart. In spite of everything you hear about business being slower and tougher, my business is booming. Just a couple of Mark�s strategies alone has allowed me to go from 40 used cars a month to over 120 a month operating out of a trailer! Thanks to Mark�s ideas, systems, inspiration and encouragement I have two dealerships and have bought the ranch of my dreams for my family.

What is important is that Chad Hawkes can sell a ton of vehicles, get plenty of referrals, is unaffected by competition and has �real� systems in place to realize a huge proÞ t every month. I knew Mark had it Þ gured out when after one consulting session he showed me over 40 ways to grow my business and make more proÞ t. He is brilliant. So here�s the raw truth about this Mark Tewart guy: Unlike most of the �pretend� experts, he is a bona Þ de trainer-consultant and money making genius, who can do anything from tweaking to transforming your business, so you not only make a lot of money, but you can make it a lot easier and more enjoyable than you can imagine.

Maybe you are already doing well already � but you could do better (some of Mark�s most ardent students make many millions per year). Maybe you just don�t want to be sold something that�ll be a waste of your hard-earned money. About that you can relax. Mark guarantees his stuff.

I�ve got over $1,000,000 reasons why you ought to investigate what Mark has to offer. What reasons do you have NOT to look at this? And here�s how easy it is: Mark has prepared a straight-talk, detailed report � �HOW TO RECRUIT, HIRE AND TRAIN A DREAM TEAM OF SALESPEOPLE,� which you can have absolutely FREE of cost or obligation. Get it, read it and decide for yourself whether or not you want to get in on Mark�s information. It�s that simple. To get your FREE Special Report go to www.tewart.com/specialreport or call our 24 hr. hotline at 1.866.432.2468. You will hear a brief, free recorded message and be able to leave your name and address, so your report can be mailed to you. Or write �report� on your business card or letter head and pop it in the fax machine or email it. Mark�s fax number is 513.934.4588 and his email address is [email protected] - Either way, you will get his eye opening report rushed to you, free.

By the way, I wasn�t paid a penny to write this about Mark. I am a car dealer just like you. I did this just as a way of saying thanks to Mark for everything he�s done for me. And I am not the only person who feels this way. With your report, you�ll get a book of actual comments from some of the over 10,000+ other salespeople, managers and dealers he has helped. Most like me are now making more money, with less hassle than ever before. More business that we handle ß ows in everyday� proÞ tably. All we can say is this, �don�t envy us. Join us�.

Chad Hawkes, Hawkes Motors, Pryor, OK.

P.S. Please don�t get my number and call me. The last thing I need is a zillion phone calls asking me about Mark. I�ve said what I have to say right here. What else could you possibly need to know? Instead, call 1.866.432.2468 and ask for your FREE SPECIAL REPORT today. You owe it to your business.

888 2 TEWARTvisit www.tewart.com/specialreport for a Free Special Report or call

283.9278

Superior Customer Service isthe Foundation of Good Business Megan Moriarty

Telling is Not Selling Zig Ziglar

Four Keys to Integrity Selling, Part 2 Sean WolÞ ngton

The Key to Success: Follow Up Your Sold Customers Chris Hanson

Building Your Brand Jim Adams

How to Identify and Sell to the Technician Personality Carol Martin

Service Contracts Offer MoreValue to Our Customers Today Then Ever Before Tony Dupaquier

The Next Generation of Direct Mail Tony Cantrell

How to Lower Your Taxes Brett H. Holst

I Enjoy Flying Almost as Much as I Enjoy Selling Cars Drew Steketee

The Personal Touch Kirk Manzo

Amazing Free Information, Only $14.95 Michael York

The Power of Action Mark Tewart

The Value of Follow Up: Why Aren�t Manufacturers Helping More With Customer Retention Joe Verde

Increase Sales, Customer Satisfactionand Loyalty in the Service Department Karen Dillon

Big Box Retailer and the Automotive Industry Bruce Thompson

If You Want Real GrowthStart With the Simple Fundamentals, Part 2 Scott Joseph

Internet Department Generates Extra SalesWhile Elevating Skills, Morale & Professionalism of Entire Sales Team Bryan Hopkins

Relevance and Timing David Kain

Applied Window Film Can Lower Temperaturesand Reduce Air Conditioning Cost in Your Show Room Marty Watts

The Demo is Not an Option Anthony Hall

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

Psalms 7:17

I will give thanks to the LORD because of his righteousness and will sing praise to the name of the LORD Most High.756 South 1st Street, Suite 202 Louisville, Kentucky 40202

! Toll Free: 877.818.6620 " Facsimile: 502.588.3170

Choose Freedom • Support Our Troops

Patrick Luck, Editor & Publisher• [email protected]

Susan Goodman, Vice President• [email protected]

Courtney HillSales-improvement Strategist

• [email protected]

Thomas Williams, Creative Director• [email protected]

Success Driven Solutions

www.autosuccess.biz10

Wilson County Automotive of Lebanon, Tenn., received the 2004 American Business Ethics Award

sponsored by the Society of Financial Service Professionals.

The ABEA, established in 1994, is a recognition program for companies with a strong, demonstrated commitment to ethics. It recognizes U.S. companies that exemplify high standards of ethical behavior in everyday business conduct. Awards are presented in three categories: large companies (more than 2,500 employees), midsize companies (250-2,500 employees) and small companies (less than 250 employees). The automotive group was the recipient of the small company category and was selected from a fi eld of 20 fi nalists from throughout the nation.

“We believe superior customer service is the foundation of good business,” said W.P. Bone, owner of Wilson County Automotive. “Our company’s code of ethics is communicated to each new employee and reinforced daily by the managers. Our employees are encouraged to take the long view over short-term profi ts in making business decisions, and we are proud to be recognized for our efforts.”

Wilson County Automotive garnered the attention of the Society of Financial Service Professionals with its business conduct, which was recognized as resting on the six pillars of character: trustworthiness, respect, responsibility, fairness, caring and citizenship.

“Wilson County Automotive was founded by people who believed in a business that offered good products at a fair price,” Bone said of the company co-founded in 1927 by his father. “They believed in being active in the community and that their customers were their friends. Their business was built upon the foundation of being fair and ethical, and nothing was more important to them than their reputation.”

Bone said the company continues to build on the work his father and his father’s partners - all of whom survived the depression, wars and fi res - created.

MeganMoriarty

“They were the ones who established the strong fundamentals of Wilson County Automotive and the group acknowledges their debt to the men,” Bone said. “While our business and our community have grown through the years, we still believe, like our founders, in offering great products at fair prices; we still invest in retaining employees who share a common belief in conducting business ethically; and we are still actively

involved in community activities that build a better place to work and live.”

Bone believes it is the work and attitude of his partners and employees that allows everyone at Wilson County Automotive to be able to hold their heads high and look their customers and friends in the eye.

“More than one employee has told me that they came to work for us – and stayed with us – because there was a history of the ‘old timers’ and a legacy of integrity,” Bone said. “All of us at Wilson County Automotive are standing on the shoulders of great giants, and I thank my partners and employees for continuing to support the fundamentals of our founders.”

Rick Bell, president of the Society of Financial Service Professionals, said the society has promoted ethical business practices among its members throughout history.

“The list of … ABAE recipients … reads like a ‘who’s who’ of corporate America,” Bell said. “Each of these companies was chosen because they represent what is right about American business.”

An expert panel drawn from business, academia, public service, media, consulting and ethics communities selected this year’s recipients. Past recipients include Hewlett-Packard Company, Bell Atlantic Corporation, Starbucks Coffee Company and Texas Instruments Inc.

The Society of Financial Service Professionals, founded in 1928, is the standard-bearer of excellence in professionalism, advanced continuing education and ethical guidance for the top fi nancial advisers in the nation. It is made up of about 22,000 members.

Wilson County Automotive is a collection of companies selling Chevrolet, Pontiac, Buick, GMC, Chrysler and Jeep.

Megan Moriarty of Dye Van Mol & Lawrence can be contacted at 866.842.1660, or by e-mail [email protected]. W.P. Bone is the dealer at Wilson County Automotive. He can be contacted at 800.368.6198.

Superior Customer Serviceis the Foundation of Good Business

Randy Jackson, Rick Tomlinson, Wayne Fielder, Kathleen Crumby and W.P. Bone

sts ms ls fi s sf

special feature

Ever wonder where your supportgoes after your bank

merges for the third time?

We’re dedicated exclusively to your business. When you choose Chrysler Financial for your wholesale and

retail financing needs, you’re choosing a company that has done just one thing for more than 40 years.

Automotive financing. From customer retention and financial software to real estate loans and E.L.V.I.S., our

people, products and services are solely dedicated to helping you sell more vehicles. In fact, we’re completely

invested in your long-term success. So you don’t have to wonder whether we’ll be there for you in the future.

Chrysler Financial is a member of the DaimlerChrysler Services Group.

Telling is Not Selling

ZigZiglarsts ms ls fi s sf

sales and training solution

As a sales professional, do you spend more time telling or more time asking? If you were to record your sales

interview, you’d probably fi nd you are spending more time talking than you are asking questions and listening.

During a sales interview, the sales person must identify the needs, issues and concerns of the customer. The best way to achieve this is to ask questions and listen to the answers. Then connect the answers to the needs and wants of the customer to your product and services. The key is to ask questions. That is the starting point of all successful sales.

Questions are the sales professional’s most valuable tool. However, we all need to be reminded to ask the right question and ask the question right.

There are several questioning types and techniques. Let’s cover four types of questions that you can implement today. They are the C.O.R.D. questions. This stands for Closed questions, Open questions, Refl ective questions, and Direct-agreement questions.

Closed QuestionsThese are questions that have one-word or “closed” answers. At the beginning of the sale call, these should be seldom used. When using these, the sales person is not giving the customer an opportunity to expand on the answers. Closed questions usually uncover facts but often don’t give any additional information. Let’s say you are trying to identify the buying criteria of a customer. You can ask: “In purchasing a car, are monthly payments important to you?” The answer may be “yes.” The customer has just responded with a fact. You may have to ask another question to identify other important criteria. It may be better if you had asked an open question. Let’s take a look at open questions.

Open QuestionsThese questions solicit “open” information. You not only gain facts, but also information. These questions usually begin with who, what, why, when, where and how. For example, when trying to identify buying criteria, you may want to use: “What are the top criteria you need when making this type of purchase?” The answer to this question gives you more than just facts. It gives you insights into why these criteria are important.

Open questions are important because they give you vital information. You also receive more valuable insight. You start to identify how receptive the customer is to your sales approach. Is he or she eager to give you information or hesitant? Open questions allow you to gauge this.

Reß ective QuestionsThese are questions that refl ect on previous answers. These questions give the customer a chance to expand or expound on something that was mentioned earlier. The customer may have passed by a very important matter and you now want to go back and address it. You can use a refl ective question to gain vital information. In the above conversation, the customer mentioned a “good, quality service department” in one of the answers. You can now go back and gain additional information with a refl ective question. For example, “Mr. Customer, what did you mean by good, quality service?”

Refl ective questions give you additional information. By using them, you are also indicating to the customer that you are listening to him or her.

Direct Agreement QuestionsThese questions gain agreement from the customer. These should be used when you are sure of the answer. They are usually answered with one word … and that word is usually yes. After you have showed the customer that you can save money or retain value or that a feature is easy to use, you can ask a direct agreement question. For example, “Mr. Customer, if we can meet your demand for fair trade in amount, will we have a deal?” If the answer is “yes,” the customer is agreeing that he’ll do business with you if you can meet his criteria.

Questions are a sales professional’s best asset. Learn to ask the right question in the right way. Good luck and good selling.

Zig Ziglar is the chairman of the board of Ziglar Training Systems in Dallas, TX. He can be contacted at 866.873.0026, or by e-mail at [email protected].


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Four Keys to Integrity Selling, Part 2

SeanWolfi ngton

In last month’s article we introduced the four traits that drive successful behaviors and hold the key to peak performance.

Dealers, managers and sales people alike are aware (and sometimes painfully aware) that the same 20 percent of the sales force is consistently at the top of the sales board while the other 80 percent will reach a mediocre plateau and stay there. The four keys to integrity selling determine whether a sales person will struggle to sell 10 units a month or become a top producer who earns into the hundreds of thousands of dollars. Selling with integrity means focusing on building value and believing that selling is something you do for your customers, not to your customers. This article is the second in a four-part series that will examine the four key traits of top producing sales people so that you can nurture those traits in your staff and seek out those traits in prospective new hires.

The Key Traits That Drive Successful Beliefs And Behaviors Are:

1. Achievement Drive 2. Goal Clarity3. Healthy Emotional Intelligence4. Excellent Social Skills

In the February issue, Achievement Drivewas defi ned as the power everyone has, to some degree, to beat the odds, to triumph over challenge and to tap into deep reserves of persistence, determination and a never-give-up attitude. Building on this need to achieve, Goal Clarity means having

clear, specifi c, written goals that you truly believe are attainable and that you feel you deserve to achieve. Goals can be personal or professional in nature, but to achieve strong goal clarity they must be clear, specifi c and put in writing. For example, “sell more cars” is a professional goal and “improve my health” is a personal one, but neither is clear or specifi c. To gain clarity, it helps to ask the following questions: When you say “more”, how many more? What will that enable you to do? What is the time limit?

A good internal dialogue can transform “sell more cars” into “My April goal is to sell two additional cars each week to hit 20 total sales and take over the top spot.” Once you’ve used the most specifi c terms possible to write down a goal that is clear and measurable, you will need to break down the goal into small daily steps and list the obstacles you will have to overcome. For sales people, those small daily steps include every activity on the road to the sale such as:

• Inbound calls• Internet leads• Follow-up calls• Follow-up e-mails, postcards and letters• Appointments• Appointment confi rmation calls• Client interviews• Product selection and demonstration• Dealership tour• Write-up• Turn to management

To increase these activities, sales people will need to track and measure what they’re doing to establish a benchmark and identify the areas that represent the best potential for improvement. Once that area is targeted, he or she can defi ne the action steps needed, the skills to build and the obstacles to overcome to make sure he or she is working toward an attainable goal and not reaching for a wish. For example, if analysis shows that a person’s greatest opportunity to improve sales lies with increasing success with inbound calls, a sales person might fi nd he or she needs to get faster when reaching for the phone, more comfortable with a script, more profi cient with product and pricing questions and more skillful with setting an appointment that sticks. This knowledge holds the key to creating a meaningful daily action plan.

So, how can you cultivate goal clarity in yourself and your staff? It helps to conduct a self-evaluation to determine where you are, by rating yourself on a scale of 1 – 10 (1 being never, 5 being sometimes and 10 being always) in the following areas:

If your score is less than 50, it might be time to heed the Nike slogan and Just Do It. Consider starting your day a few minutes early to tackle additional sales activities and steer clear of obvious time-wasters that may distract throughout the day. If high Goal Clarity is a trait you’d like to seek in prospective new hires, ask them to complete the survey and provide examples. Sales people with high degrees of Achievement Drive and Goal Clarity will often fi nd a way to succeed, selling volume and gross regardless of product and market, but they can wreak havoc with your CSI scores and the morale of your dealership if they lack emotional intelligence and social skills. Look for the third installment in this four-part series next month in which we will turn our attention to Healthy Emotional Intelligence.

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

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1. I write clear, speciÞ c and measurable goals for sales and income.

2. I revise and update my goals each month.

3. My goals are consistent with my values and I feel worthy of achieving them.

4. I break my goals down into small daily steps.

5. I identify the additional skills and training I may need and any obstacles that may stand in my way.

The four keys tointegrity selling determine whether a sales person will struggle to sell 10 units a month or become a top producer who earns into the hundreds of thousands of dollars.

NADA2005


ChrisHanson

The Key to Success:Follow Up Your Sold Customers

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Many times as sales people we focus too much on the sale today that we forget about the sale we made yesterday. The

problem with that is our sold customers are our true lifeline. They are what make us or break us. This is the most overlooked part of most sales people’s career.

I know if you’re newer to sales you want to learn how to get customers in to see you, and that’s a valid concern. I want to fi rst show you the importance of your sold customers, because that is the foundation of why I am successful. Period. I want you to look at your sold customers in a different way because when they purchase their next vehicle from you, it will be easier, quicker and way more fun! You will start to develop a friendship. Expect the extraordinary.

Let’s forget about steps of the sale and closing for a minute and take a closer look at what our sold customers really mean to us. This will put you on the road to success.

Your Savings Account.By staying in touch with sold customers you are putting them in your interest bearing savings account. When they purchase from you, they go into your savings account. Monitor them. Keep a close eye on them and don’t let anyone rob them. Trust me, they are yours to lose. My security is top of the line. When I put them in my saving account, no one - I mean no one - can touch them. I have put into place ways to keep my customers. I take other people’s customers all the time but I do not lose my customers. You see, one day - and sooner then you think - they will add to their value. They will come in to buy again and again. They will send other people in that will purchase from you and then you can put them in your savings account, as well. And that is not worth losing! Guard them with your life because they will become your career, your lifeline, the difference between a J.O.B. (Just Over Broke) and a successful career.

Fortunately, when I fi rst started selling cars, I read about how important it was to follow up with customers and I took it to heart. One of the biggest reasons I have become successful selling cars is because I put a lot of energy into following up with my sold customers.

Let’s talk about what we can do to keep our

customers. Do not rely on the dealership to do it for you. It needs to be personal, and it needs to be from you.

Database.Not the dealership’s, yours. I started with a Rolodex and then went to a computer with a general follow-up program. Then I went to a specifi c car program. I am in my database all day, everyday. E-mail me and I’ll let you know how to get a computer program for as little as $20. The one I use now was $495. First I bought a laptop, and now I use a desktop computer. Can’t spend a lot of money? E-mail me and I’ll give you a couple places to check out where you can fi nd a laptop for as little as $200 to $300.

The Delivery Package.I don’t care if you’re doing a spot delivery or they are picking up the vehicle the next day, do this!

Small pad of paper, dealership pen, some candies, a small travel-size package of tissue, pennies, nickels and quarters in the change holder and note. “Just a few things to get you started in your new vehicle. Enjoy, Chris.” It will only cost you two or three bucks a car. Hint on getting note pads: parts stores, windshield places and your customers who own businesses – FREE. Ask for some and tell them what you do with them. It’s free advertising for them. Do you want to do a small thing that has a big impact? Try this. Don’t underestimate this; it’s the little things that matter!

The Phone Call After the Sale.Call them the next day. Forget about CSI, manufacturer rules. My manager says so; if I don’t I get in trouble. This isn’t their business, it’s yours. You call them the next day because you are building your business. Because it’s important. New and used customers. Yes, I said and used customers, too.

The Thank You Note.Two days later, send them a nice thank you note. Make it count. Have your logo on it. If you want my thank you note, e-mail me and I’ll mail one to you.

Monthly E-mail Newsletter.Collect their e-mails! Send them new rebates, new models, fun stuff. If you want to see my newsletters, e-mail me.

Quarterly Newsletter.The purpose of this is to have your name go by them again. Tell them about what you’ve been up to. Tell them about new models coming out. Give them tips on maintaining their vehicle and other household things. What do you like to read? Have a contest with a drawing. If you want more information on this, please e-mail me.

E-mail and Video E-mail.I send out a monthly e-mail newsletter – it’s free! I also use video e-mail. It’s very cool and very affordable. E-mail me and I’ll send you one.

Service Dept.You should always be looking in the service department for your customers. You are never too busy. Talk with them a few minutes. Visit. Make a friend. I know when many of my customers are in for service because they call me to set it up. I am their contact.

Is it work? You bet! Will you build a successful CAREER? YES! Are you just another sales person doing the same thing everyone else does? Do these things and get ready to wow them! Rise above the rest. Set yourself apart. Whether you have one customer or 1,000, start today. Expect the extraordinary.

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


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Building Your Brand

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Factories spend billions of dollars every year trying to bring customers to their products and

drive traffi c to your showroom. Most factories assign the dealership an area of responsibility and an annual market share goal for your area of responsibility.

The most important thing that we have to remember is that thousands of franchised new vehicle dealerships rest in rural markets where national projections do not apply. Rural dealerships can obtain market share numbers two to three times the national share numbers. How does this happen? Brand image. Family-owned dealerships that are passed down from generation to generation, like a family heirloom, carry

more brand image than the factory. In our market we sell Kia, Honda, Pontiac and Buick, but our brand is ROPER.

Every new car dealer sells new cars. Every new car manufacturer builds great cars. What sets your dealership apart? I am sure that you have seen dealerships in your area that may not be in the best location or don’t have a new state-of-the-art facility, but remain a real player in your market. Chances are that they have taken the steps necessary to build their brands.

So how do you build your brand?

1. It starts with a mission statement. The focal point of what you want your dealership to be. Not a slogan or a catch phrase but the message of your dealership’s character. Our 2005 mission statement is, “To provide

award-winning customer service to every sales, service and parts department customer that enters our facility, calls our number or visits our Web site.” Once you have a mission statement you must gain a buy-in from the entire team: sales, parts, service, offi ce personnel and the detail shop. Every employee that walks into the dealership must be focused on award winning customer service 100 percent of the time, with every single customer with whom they come in contact. Treating people with award-winning customer service all of the time creates owner loyalty. Loyalty creates repeat owners and referrals. Once you have a captive customer he or she will buy whatever you sell. Period. Bob Atwood, instructor of the NADA dealer academy, said one captive customer will spend $517,000 at your dealership in a lifetime if you just act like his or her business is important to you.

2. Practice what you preach. If you are going to say it, you’d better do it. There is nothing more insincere than a dealership that says one thing and does another. If your focus is great customer service, do not just say you provide it, but show your customer every day the difference between your dealership and the one down the street.

3. Get involved in your community. There are hundreds of ways to get involved in your community. Little league, Cub Scouts, Girl Scouts and the Chamber of Commerce are excellent organizations with which to begin giving back to your community and an excellent source for new business contacts. Give your community a reason to do business at home by taking an interest in the things that are important to it.

4. You reap what you sow. Having no standard of excellence contradicts right living. Take care of that community and it will take care of you.

Jim Adams is the general sales manager at Roper Kia in Joplin, MO. He can be contacted at 800.905.0627, or by e-mail at [email protected].

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How to Identify and Sell tothe Technician Personality

Technicians, typically seem reserved, serious and skeptical of sales people.

Should you still try to dazzle them with your charm? Is it OK to be funny? Or would you benefi t by being almost as understated as they are?

One easy-to-spot characteristic of a Technician personality is a pragmatic, restrained business approach. He or she is typically bottom-line oriented and interested mainly in getting answers to very specifi c and, sometimes, highly technical questions. Don’t be frivolous with a Technician.

If your prospect almost immediately seems a little cautious, conservative, impatient, and concerned about the particulars of a vehicle, he or she may be a member of the Technician personality group. Leave out your humorous stories and cut back on small talk. Listen intently to the few words your potential buyer may speak and start thinking in terms of pertinent data and facts regarding specifi c vehicles; many Technicians come to a dealership only after they have scrutinized reviews and memorized statistics about their favorite makes and models.

Even if you innocently misstate MPGs (just a little), die-hard Technicians will take you to task and point out your mistake. The assumption that “close enough is good enough” simply does not fl y with these detail-oriented individuals; to maintain your credibility with them, you need to relay very accurate information. If you’re unsure about the answers to questions, do some research or ask your manager. Whatever you do, don’t just guess.

Technicians are not highly assertive or authoritative, but they can stand their ground when they think they’re right; still, there’s no point wasting time by trying to challenge them on issues that are not critical to the sale of a vehicle. They often become defensive, sullen or visibly shaken if their opinions are questioned. Go along with them if the subject of contention is too trivial to really matter (which is sometimes the case with high-level Technicians.)

However, if you disagree about an important selling point - a potential deal breaker - and you know you’re right, have some black and white proofs handy. Technicians have a prove-it-to-me mindset and may want to see records, reports or some other documented facts that will fully substantiate your claims.

So far, we’ve discussed a typical Technician’s restrained demeanor, preoccupation with details and facts, and heightened sensitivity. But what about the pace of these individuals? Do they expect you to take your time when showing the vehicle? Should you explain everything carefully, repeat information for emphasis, or keep things moving along swiftly?

Considering their craving for specifi cs, Technicians are surprisingly fast-paced. They can become restless easily so it’s best to cut to the chase by pointing out a vehicle’s features and touching on the pragmatic reasons to fi nalize a deal. Most Technicians dislike high-pressure sales tactics, but they usually respond well to clear-cut logic and a sincere acknowledgement of their research.

Different Measures of the Same TraitsAll Technicians are not created equal. While their overall pattern refl ects people who are politely assertive, quiet, hurried and meticulous, each individual’s level of these traits will vary. For example, some Technicians can be so standoffi sh they always seem aloof, while others warm up slightly once they get to know you better. One person might seem extremely antsy, while another may appear to be simply a little pressed for time.

Technicians pride themselves in being pragmatic and by the book. They’re usually conscientious realists who are not easily swayed by hype or hearsay. To increase the likelihood of a sale to them, be professionally personable, informative, exact and time-driven. Keep in mind that selling the Technician can be relatively easy ... if you know which buttons should and should not be pushed.

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

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In order to overcome objections, business managers need to be prepared for today’s educated buyers and educate themselves on

VSCs and the advantages they have over the Limited Factory Warranties.

�It costs too much.� “Compared to what? Gasoline costs Americans an average of 10 cents per mile. Automobile insurance costs about 16 cents per mile. If someone does not maintain a vehicle - new tires, oil changes, new brakes - and does only the two critical items: insurance and gas, he or she is spending about 26 cents per mile to drive an automobile. A VSC costs less than 3 cents per mile.”

Educate every customer on how inexpensive a VSC is when compared to gas and insurance? It is the responsibility of the business manager to inform the customers of this.

When the customer asks the question, “How much is it?” give a number. It can be the full amount, “$1783,” or monthly installments, “Only 18.50 a month,” or on a per mile amount, “Less than 3 cents per mile.” Break the amount down to something small and almost meaningless.

Maximizing verbal communication is also important (57 percent of communication infl uence). Be confi dent and congruent; your voice qualities or tonality must match what you are saying.

�They don�t cover anything.� Some cheap, component-coverage-only contracts may not cover much except for major lubricated mechanical items. When selling an exclusionary policy, ensure the customer receives it.

Exclusionary policies sold today have more benefi ts than many of the manufacturers’ Limited Factory Warranties. The factory only covers defects. A defect is a bad part or a bad assembly of a part that occurred in the factory. The Limited Factory Warranty does not cover a failure. A failure results when a part no longer operates according to factory specs, usually due to normal wear and tear. Every business manager should know the difference.

In the past, when a customer arrived at the

service drive, he or she told the service advisor of the problem. After a quick check of the mileage, year of the car and to see if the vehicle’s warranty was valid, the service department attached a tag and fi xed the car as soon as possible. Factories have since changed their procedures. Most business managers know this if their dealership has ever gone though a warranty audit. Advisors are now trained to look for failures as opposed to defects. In many cases the Limited Factory Warranty does not cover failures. However, with the majority of the exclusionary VSCs now available, many of those failures would be fi xed.

Remember when customers received a complimentary rental car when their vehicles were in for service for an overnight repair? Image the amount of money spent on rentals during that time. The factories, for the most part, have reduced this coverage or have eliminated it all together. The companies that still offer some form of rental reimbursements are some of the high lines. However, for everyone else, the customer’s car must be in the shop overnight for warranty work, exceeding eight hours of labor, which usually means the repair is major like an engine rebuild or a transmission fi x. Many of the repairs in shops are done in under three labor hours, but it is required that the vehicle sit at the store for two days until the parts arrive or a technician is free to work on the vehicle. For the majority of customers, the only way to receive any type of rental car is through a VSC.

Roadside Assistance is changing, too. With the evolution of satellite navigation and GPS locators, Roadside Assistance is now an electronic eye in the sky and usually costs a yearly fee. Many cars without these high-tech luxuries are left out of Roadside Assistance programs. A good VSC comes with Roadside Assistance and Trip Interrupt service, ensuring the customer’s safety in the event of an unforeseen problem.

Between failures, rental cars and Roadside Assistance, it is very easy to see the need for a VSC during the Limited Factory Warranty period, and it is the responsibility of the business manager to ensure the customer is presented the value, as well.

�I was told not to buy one.� By whom were they told not to buy one? Was it the credit union, the insurance company, a consumer magazine, the Internet or an

association group? A reason these sources tell the customer not to buy one, is so they can sell them an inferior product.

Product KnowledgeA business manager must have knowledge about the service contracts offered by these other sources. The majority of the information is available online, or make a phone call.

Here are a few of the major differences between the VSCs dealership’s offer and the cheap ones offered by other sources.

Reimbursement policies: Several of the service contracts are 100 percent reimbursement polices, in which the customer must pay up front for the repair and then apply for repayment. As with any policy, the repair must be an approved repair. Is it only after the repair is made that the customer fi nds out if the repair is approved?

Labor Hours: There are several polices that will only pay labor hours according to an internal guide. The VSC’s provider does not use the same labor guide as the factory or books used nationwide, like Chilton. Therefore many dealers will refuse work from certain VSC customers because their policy will not pay for the work at the shop.

One VSC advertised on the Internet revealed, in very fi ne print, that it only covered parts and not labor. Parts? Only parts? Granted, there are several parts on today’s vehicles that could cost a considerable amount of money, but I would be concerned about the labor cost associated with them. Consider a R.O. ticket with a $14 part and four labor hours to get the piece installed.

Service contracts offer more value to our customers today then ever before. With good product knowledge, good competitive product knowledge and a true understanding of what the Limited Factory Warranty covers and does not cover, a business manager’s VSCs sales should dramatically increase by professionally presenting this knowledge on to customers.

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].


NADA2005


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Scott JosephPresident and CEO, J&L Marketing, Inc.

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Sean WolÞ ngtonOwner, BZResults.com

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your dealership. Done. You want to track

your mail, to know when it has dropped,

when it hit USPS sorting areas and when

it is delivered to your target’s door. Done.

You want a list of everyone that you are

targeting in advance so you can have your

sales staff calling in advance of the mail

hitting their mailboxes to inform them of

the upcoming sale or special event that you

are having just for them. Done. You want

to know what exactly your customers want

before they even walk in the door. Done.

All this and more is done with direct mail.

Surveys have shown that direct mail is

effective - more effective and measurable

than any other marketing medium available.

Plus, it costs less. TV ads infl uence about 17

percent of auto buyers. Internet marketing

accounts for about 26 percent of automotive

buyers.

In one recent survey conducted by Vertis,

Customer Focus® 2005 Automotive Direct

Marketing study, showed 73 percent of

adults who plan to purchase a new vehicle

responded to automotive direct mail they

received. It also shows the following

additional fi ndings, which provide insight

into the direct mail readership of consumers

in the automotive industry:

How Male Consumers Respond to Direct

Mail Offerings From an Automotive

Company

• Of the male automotive direct

mail readers, 37 percent visited a

dealership in person.

• Twenty-three percent of male

automotive direct mail readers said

they visited a sender’s Web site for

additional information.

• Six percent of male automotive

direct mail readers called an 800

number available on the mailing.

• Eight percent of male automotive

direct mail readers replied to an offer

from an automotive company via

mail.

How Female Consumers Respond to

Direct Mail Offerings From an Automotive

Company

• Thirty-nine percent of female

automotive direct mail readers visited

a dealership in person after receiving

information in the mail.

• Thirteen percent of female

automotive direct mail readers said

they visited a sender’s Web site for

additional information.

• Of the female automotive direct

mail readers who looked at mail in the

TonyCantrellfs feature solution


Direct mail is more cost effective than any other marketing medium; you can track it to the penny. With more added service comes higher response rates and better closing ratios.

last 30 days, 11 percent called the 800

number on the mailing.

• Six percent of female automotive

direct mail readers replied to the

information they received via mail.

How Generation Y Responds to Direct

Mail Compared to Other Generations

• Of the younger Baby Boomers

(1956-1964) automotive direct mail

readers surveyed, 46 percent said

they visited a dealership in person,

compared to 38 percent of Generation

Y (1977-1994) adults.

• Thirty-two percent of Generation Y

automotive direct mail readers stated

they visited a sender’s Web site, and

march 2005 25

Suppose you made direct mail a main focus of your marketing efforts. Do you want to increase your name recognition, increase showroom trafÞ c, increase or change your closing ratio? All and more can be done with direct mail.

24 percent of Generation X (1965-

1976) responded the same way.

• Thirteen percent of Generation

Y automotive direct mail readers

called an 800 number on the mailing,

compared to 10 percent of younger

Baby Boomers who responded in the

same manner.

• Fourteen percent of Generation Y

automotive direct mail readers replied

to the offerings from an automotive

company via mail, while 7 percent

of Younger Baby Boomers replied

through this medium.

Use the best form of advertising to bring the

people you want to your dealership.

Direct mail is more cost effective than

any other marketing medium; you can

track it to the penny. With more added

service comes higher response rates and

better closing ratios. Suppose you made

direct mail a main focus of your marketing

efforts. Do you want to increase your name

recognition, increase showroom traffi c,

increase or change your closing ratio? All

and more can be done with direct mail.

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].

BrettH.Holst

How to Lower Your TaxesHow you record your new vehicle inventory has a signifi cant impact on your taxable income. You don’t want to pay

more tax than is absolutely necessary. Many dealerships pay tax in advance of when it needs to be paid. By following the regulations set by the Internal Revenue Code and by GAAP (Generally Accepted Accounting Principals), you could signifi cantly lower your taxable income and subsequent tax payments for 2004 and 2005. In addition, your dealership will be in compliance with these regulations and not risk potential non-compliance penalties. Such penalties could include the loss of your LIFO reserve and subsequent increase in tax liability.

DeÞ ning the Net MethodThe Net Method is an industry-accepted term referring to the valuation of new vehicle auto dealership inventory Net of Trade Discounts and Advertising Credits.

The RegulationsAccording to IRS regulations, Trade Discounts must not be included in a dealership’s inventory. While there are many IRS regulations and publications on this topic, none is clearer than Revenue Ruling 84-41 when referencing Internal Revenue Code section 1.471 3b – General Rule for Inventories that states:

“An automobile dealer must record the cost of new automobiles in inventory reduced by the amount of a manufacturer’s rebate which represents a trade discount” What is a Trade Discount?As defi ned by IRS Revenue Ruling 84-41:“Trade discounts represent adjustments to the purchase price granted by a vendor. The discount may vary depending upon volume or quantity purchases, or other factors established by the vendor. If a discount is always allowed irrespective of time of payment, it is considered to be a trade discount.”

In practical terms, this includes items such as hold back, fl oor plan assistance, interest credits, fuel credits and many others depending on the manufacturer and current programs. Note that all types of discounts

are not readily available on a manufacturer’s invoice.

In a recent Dealer Development General Field Bulletin Ford Motor Company recognized that current GAAP now interpret Ford’s fi nance cost reimbursement program as a reduction in the cost of the vehicle, which must be recorded as such. As a result, all dealer development dealerships were required to refl ect the Change in Accounting Method (CAM) in operating results as of 12.31.03.

The IRS issued Revenue Procedure 2002-09 making the change in accounting method for Trade Discounts an ‘automatic’ or pre-approved change that does not require an IRS fi ling fee. This allows the change to be completed and submitted along with your current year tax return.

What about Advertising Costs?By including Advertising Credits in your ending inventory you are capitalizing expenses that should be recognized in the year the vehicle was brought into inventory, again overstating the current year income and paying tax before it is necessary to be paid. GAAP regarding inventory clearly guides accountants to avoid capitalizing (inventorying) expenses such as advertising. Doing a CAM for Advertising Credits is not pre-approved by they IRS and requires that the change be fi led with a fee during the year of change. This change must be fi led prior to your dealership’s year-end and will affect your 2005 tax payment.

What is the beneÞ t to my dealership?Lower tax payments! By including Trade Discounts and Advertising Credits in your ending inventory, your dealership is recognizing income too early and paying taxes before they are actually due. In addition, if you utilize LIFO to value your inventory, your base costs are being misstated by improperly including the Trade Discounts and Advertising Credits in the inventory value. You risk audit exposure to improperly valued LIFO inventory.

An example of a Toyota dealer adopting the Net Method increased the reduction of taxable income from a “Gross Method” LIFO Reserve of $435,351 to a Net Method LIFO reserve of $650,685, a 49.5 percent increase.

How do I generate this beneÞ t?Doing a CAM to the Net Method will reduce the amount of income reported and the subsequent tax payment. The amount of the benefi t varies based on the type of dealership and current accounting method. In general, income is reduced by an average of 2.5 percent of the total dollar value of inventory at the end of the year.

For dealerships valuing their inventory on LIFO, a mandated three-year look back is necessary to revalue the LIFO layers. Non-LIFO inventory will require a one-year look back. In either case, a signifi cant amount of information not previously accumulated will need to be gathered. This is a data-intensive task that is best processed by a company capable of handling large amounts of data entry and the complexities of this accounting change.

How do I Þ nd out if my dealership inventory is properly valued on the Net Method?Your CPA fi rm may be able to help you with this determination. The challenge that CPAs face is the number of vehicle manufacturers, types of Trade Discounts and Advertising Credits and the ability to identify (not always on the manufacturers invoice) what constitutes a Trade Discount and Advertising Credit. Be prepared because there are frequent changes to these programs. There are third-party companies that specialize in both the estimation of the benefi t and the actual processing of the CAM.

Tax Savings SummarizedProperly accounting for inventory on the Net Method will lower your tax bill and ensure compliance with the Internal Revenue Code and GAAP. The size of the benefi t depends on factors such as dealership type, number of vehicles in inventory and the current accounting method. Even if your dealership currently utilizes the Net Method, exploring the benefi ts of a specialized third party service provider can prove benefi cial. A Florida GM dealer recently increased their net method benefi t from $79,259 to $151,418 by capturing information not readily available on the invoice.

Brett H. Holst, CPA is the director of national sales at Green Outsourcing. He can be contacted at 866.842.1638, or by e-mail at [email protected].


sts ms ls fi s sf

leadership solution


I Enjoy Flying Almost asMuch as I Enjoy Selling Cars

DrewSteketee

Attending auto auctions isn’t just a business endeavor for Toyota dealer Richard Mee. It’s an excuse to get behind the controls

of his fi ve-seat Bonanza airplane. Mee, who owns Liberty Toyota in Burlington, N.J., is a licensed pilot, one of a growing number of car dealer-pilots around the country. They’ve discovered that fl ying themselves is a more effi cient way to get to auctions, industry meetings or just about anywhere rather than fl ying commercially – or even driving.

His weekly trips from South Jersey to Manheim, Pa., and Hartford, Conn. – a minimum of two and a half hours fl ying commercially or four hours by car one way, are short hops in his Bonanza A-36. Manheim is a mere 31 minutes and Hartford is a shade over an hour, so he doesn’t have to waste a whole day. More importantly, he arrives relaxed and ready for action.

“The work of going through a huge lot full of cars just isn’t as tiresome when you’re fresh after a short fl ight,” says the 53-year-old Mee, who opened his dealership in 1995 after owning an Oldsmobile dealership. “There’s a lot to be said for that.”

A single-point Toyota dealer, Liberty sells about 2,000 new and used vehicles a year and had $61 million in sales in 2004. That same year, he added the Scion brand to the line.

Aside from the pleasure and time savings he derives from fl ying himself, he says the ability to attend so many auctions, coupled with the fl exible schedule being his own pilot allows, has positively affected his bottom line.

“Being able to get there early enough to pick through the inventory allows us to buy an extra two to three cars a week,” he notes, which translates to up to $6,000 in added profi t.

Mee’s love affair with fl ying began in the early 1970s when he served in the Navy as a non-fl ying member of a helicopter crew. He joined the base fl ying club, which allowed enlisted men to take fl ying lessons for about $6 per hour. He completed most of his training in the service and fi nally earned his private pilot’s certifi cate in 1976. He has since earned an instrument rating, allowing him to fl y at night or in inclement weather, as well as multi-engine and commercial ratings.

Today, fl ight instruction costs around $90 per hour. Depending on where you live and

how frequently you take lessons, earning a private pilot’s certifi cate runs anywhere from $3,500 to $6,000. To see if learning how to fl y is for you, an aviation industry program called Be A Pilot can give prospective fl yers a chance to take the controls for just $49, at over 2,100 participating fl ight schools across the country. Car dealers who want to test-drive an airplane can register for the discounted lesson at www.beapilot.com, or by calling 866.842.3397.

Once you earn your pilot’s license, you don’t have to buy a plane. About half of all pilots rent their aircraft, at a rate of $60-$120 per hour including fuel and you only pay for the time the engine is actually running.

For Mee, the ability to fl y has changed his life.

“You can travel on your own schedule and really maximize your time, particularly when it comes to the weekly auction routine,” he says. “When traveling to Connecticut, for example, you can save a whole day.”

Jumping on every chance he gets to fl y, Mee also pilots his Bonanza whenever Toyota has its national dealer meeting within 1,000 miles. In the past fi ve years, that’s included Chicago and Atlanta. And during a dealer meeting in Las Vegas a few years ago – to which he fl ew commercially – Mee rented a Piper Archer and fl ew two other dealers over the Grand Canyon, an experience he calls “awe inspiring.”

His plane is a nice perk for employees, too. Each year Mee rewards his service manager and used car manager with a fl ight to Daytona, Fla., for Bike Week. They send their motorcycles down on a trailer ahead of time.

He’s even fl own special customers who’ve wanted to take sightseeing fl ights up and down the Hudson River to see the spectacular views of New York City and the Statue of Liberty.

“Pretty much any opportunity I get to go fl ying, I go,” he says, noting that he also travels for golf and skiing trips with his wife and three grown children. Destinations have included Cape Cod, Myrtle Beach and northern Florida. He proudly says his daughter Renee, 17, has caught the fl ying bug and hopes to earn her license.

Mee plans to soon earn his air transport pilot license, which is required to fl y for the airlines, but he insists he’s doing so simply to become more profi cient, not because he’s looking toward a career change.

“I enjoy fl ying almost as much as I enjoy selling cars,” he says.

Drew Steketee is president and CEO of the nonproÞ t Be A Pilot program, based in Washington, D.C. He can be contacted at 866.842.3397, or by e-mail [email protected].

Toyota dealer Richard Mee

sts ms ls fi s sf

leadership solution

KirkManzo

The Personal TouchHave you ever noticed that when a sales person has something distracting them, it is very diffi cult to get them to sell cars? So,

how do you best address this reality?

Sales managers are required to wear many hats and play a variety of roles within the sales team: overseeing the sales effort, ordering inventory, hiring and fi ring sales staff, conducting training, etc. However, it is the role of coach and mentor that really separates the average manager from the great leader.

The old adage holds true. “People don’t care how much you know until they know how much you care.” The best strategy you can put in place is to establish the daily habit of meeting with each sales person one on one. I realize some of you are thinking how in the world am I going to fi nd time to meet with every sales person every day? The fi rst thing you should examine is how many sales people you are supervising. Each sales manager should be able to effectively supervise fi ve to 10 sales people. More than 10 becomes counterproductive. For our conversation, let’s use seven.

Conducting seven, one-on-ones daily may not be practical. Learn to walk before you run. Break the seven sales people into two groups. Group A (four people) will meet with you on Monday, Wednesdays and Fridays, while Group B (three people) will meet with you on Tuesdays and Thursdays for the fi rst month. The second month, fl ip the days so Group A will meet with you Tuesdays and Thursdays. Over eight weeks everyone will have the same number of meetings. By the way, no they do not have to come in on their days off for their one-on-ones.

These meetings should be conducted on an individual basis in a private setting, not on the showroom fl oor. The idea is to be in a place where you can both speak openly and not be worried about someone overhearing the conversation.

You should remember to deal with your sales person as a person fi rst and as an employee second. They realize you are their boss there is no need to remind them at this time. Always start by simply asking these three questions.

How are you doing? At home? At work?If something is bothering them they will not

be effective until some solution can be found. This is not a time to be judgmental; remember you are just trying to help them get this off their chests so they can get back to business. Just let them talk.

How do you think the team is doing?Do you think it is possible that your sales people might discuss something with another sales person before they would ever discuss it with you? The idea behind asking this question is to stay ahead of problems before the hot potato lands in your lap. You are not attempting to compromise any confi dences; you are just trying to stay ahead of a potential issue. When the sales person in question feels ready to talk, at least you will be prepared to appear wise and sage rather than judgmental. This will build the trust you want and need in your sales team so you can get the best out of them.

What can I do to help you succeed?They need to know you really care. Keep the focus on their improvement. Sometimes you will not be in a position to address all of their requests, but at least someone is asking.

Sometimes there will be little, if anything, personal to discuss, but in time your relationship and their trust in you will grow to allow for more open and frank conversations.

Once you have asked the three personal questions go directly into reviewing their most recent sales and unsold prospects. Review each customer sold for profi t front and back. When they do a good job, congratulate them, and ask, “what did you do to make this happen?” They should have an answer. If they do not, then the only thing you can do is say they were lucky, and that is no way to build a successful sales career. If they did poorly (low gross) ask them why and what did they learn so that presented with the same situation next time, what would they do differently? Repeat the same approach for each unsold prospect.

Remember, consistency on the part of a manager or supervisor is one of the top reasons people perform to their potential and stay with an organization.

Be a coach and mentor to your people. 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].

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march 2005 29

MichaelYork

Amazing Free Information, Only $14.95If you’re bored or boring or like being a v e r a g e … D O N ’ T READ THIS!Please move along.

For the rest of you sticking around, it’s not a misprint. You can get links and pages and books of free information for one low price … just slightly more than free.

What if it were true? That on the sites of countless Internet comings and goings, hidden away in books on walls of shelves, and in the minds of amazing individuals, there was information for (almost) FREE that has been tested and tried and proven, and it’s just waiting for you to discover it.

There’s information on how to sell more of your stuff; how to become better at networking; how to radically redesign your Web site; how to become an amazing marketer; how to become uncommon; how to put more life into yours; make more money;

have more ideas; gain wisdom and so on.

But you didn’t know where to fi nd it, until now. (Many will still never make time to use it). Now what’s it worth? To one, thousands or hundreds of thousands, yes even millions. To another? Hey, I said it was free, so that must be what it’s worth.

That’s the paradox: Price vs. value. Seeking and doing vs. wishing and hoping. That’s the mystery of life and success. It’s really no mystery at all for the serious student or the individual committed to fi nding the answers. What if you absolutely must become a success at your chosen profession? Could you? Would you? Chances are excellent you’d fi nd a way. History confi rms it.

The good news and bad news? There’s plenty of free information that’s too expensive and countless resources available that have delivered seven-fi gure payoffs and fi lled lives with purpose and resolve and fulfi llment of which no one asks (or cares) about the price.

The fact is:Most people won’t do what it takes to become great, even when they know what it is. There is no lack of opportunity for greatness, only a lack of resolve. An apathy or attitude that says “it’s too hard” or “it costs too much” or “what’s the use?” That’s why the price doesn’t matter as much as the value. It’s why wanting and wishing are common and why the reward of results will always be largely a product of an individual’s resolve. Will you or won’t you? That’s the question.

The answer isn’t multiple choice, it’s personal and it’s fi ll-in-the-blank. There’s only one pencil, and you’ve got it. How will you answer?

This month a book that was once an idea goes on sale. It’s about more than motivation. It’s all about commitment. I’ve had countless people try to put a label on what I do from the platform. They’ll say something like, “Oh, you’re a MOTIVATIONAL speaker.” Nope. Only you can motivate you! I’m a commitment speaker. Commitment is stronger than motivation. Commitment says “I will” no matter what. No matter how you feel tomorrow or even if no one else shows up, you will. That’s the power of Commitment.

If you’d like to know more about becoming uncommon and how to fuel your commitment toward whatever you wish to become, go to www.autosuccess.biz and click on Michael York’s Free Commitment Info.

Michael York is an author and professional speaker. He can be contacted at 800.668.5015, or by e-mail [email protected], or visit www.MichaelYork.com.

There�s plenty of free information that�s too expensive, and countless resources available that have delivered seven Þ gure payoffs and Þ lled lives with purpose and resolve and fulÞ llment of which no one asks (or cares) about the price.

sts ms ls fi s sf


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MarkTewart

The Power of ActionI was recently invited to be a guest lecturer for an entrepreneur class at the University of Cincinnati. In the question-and-answer

portion of the program, the professor asked me to sum up what I felt was the most important message I could stress to the class. My reply was one word – ACTION.

At a sales seminar I was giving, I was going over low- to no-cost marketing strategies designed to increase leads for sales people. At the fi rst break after the marketing section, one of the sales people in attendance who had fl own across the country to attend, got on the phone and called a list vendor I had suggested during the class. Before the break was over, he purchased a large list for a small cost, created an outline and had begun to write the letter based upon proven copy writing techniques and marketing strategies. Afterward he was able to express the value of the campaign to the dealership management and they agreed to cover his costs of his campaign.

At the end of the day, I was having a conversation with the promoter of my seminar and I asked him how many people would take action on that one idea. His answer was few, if any, other than the one sales person. He asked me why I thought that was the case, and my answer was simple and

scary – I didn’t know.

From my days as a general manager and leader of people in dealerships to my now many years of training, consulting and sharing with people in dealerships all over the world, I have constantly been stumped by the lack of action by the masses. The truth

sts ms ls fi s sf


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Larry John Wright, Inc.Larry John Wright, Inc. Automotive AdvertisingAutomotive Advertising

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is indisputable that a small minority will move through their fears and excuses and begin to take action on the necessary steps for success.

In the last few years, I have begun to unlock and share some of the secrets to taking action and achieving success. Unfortunately,

continued on page 45

march 2005 31

Less than 5 percent of people will ever write their goals and begin to focus on their desires and action plans to get there. Clarity of thought creates questions that bring answers.

JoeVerde

The Value of Follow Up: Why Aren�tManufacturers Helping More With Customer Retention

sts ms ls fi s sf


In many cases, they are, and that’s great. But is the factory doing your follow-up the answer to your

long-term success?

Follow-up is critical, and the truth is most managers don’t know how to set up an effective follow-up program for their sales force or how to manage it effectively every day. That, plus a lot of managers just aren’t willing to insist that their sales people do the job they were hired to do (of which follow-up is one of those critical responsibilities).

Manufacturers do try to help out, and they encourage their dealers to build their repeat business. The problem is none of this outside help will ever be as effective at building that customer loyalty in your dealership as a good sales person who is personally doing his or her own follow-up would be.

Why? Because selling is a people business. That’s not just a statement by someone, that’s a tracked fact.

71 percent of our customers said they bought because

they liked the sales person.

How do manufacturers improve customer retention? Good credit terms, owner loyalty bonuses, providing a good product, backed by a comprehensive warranty and an assurance of good service if there’s a problem.

Sure, they can set up the big DDC in the sky and they can follow-up for your sales people, but that should be your responsibility, not theirs. You can contract out the job to a company to do the follow-up for your sales people, too, if that’s what you want.

When you look harder at selling and follow-up and how they work together, you begin to understand why computer generated stuff or

a call by a stranger at the factory can never be as effective as an individual follow-up call or note from a sales person personally or at least from your own internal staff.

What is follow-up?

On-going follow up is just advertising, but on a personal level. It’s just to keep your sales person’s or your dealership’s name in front of the customer on a regular basis. And if we look at advertising and what makes it effective, the key to any effective advertising campaign is consistency and repetition. Present a consistent impression over and over again.

To see an example of an effective follow-up program, look on your garage door, your front door or in the mailbox. If you’re like most people, you have a real estate agent in your area who does an effective job of doing their follow-up advertising and prospecting. They’ve been leaving their literature on your doorstep every 30 to 45 days for years.

In the beginning, those pieces of literature were a nuisance from someone you didn’t know - and you probably wish they’d stop sending you stuff. The point is that over time, through repetition, you began to recognize the person, their company and the services they offer. And when someone mentions real estate, you immediately think of the agent whose been following up.

Two big tips with follow-up materials...

1. Repetition - the key to success.One of the biggest errors people make with their follow-up systems is that they don’t include enough repetition to create the recognition required for people to do more business with you. People won’t remember you very long from just a single contact or two. Like the real estate agent or those charge card applications we all get weekly - you need a long-term, repetitive program to be effective.

2. Keep it simple.Another very common error manufacturers, dealerships and sales people make is that they have someone create a very professional, slick-looking mail-out, but their goal is to make the customer think it’s from them.

What’s wrong with a slick looking mailer? Well, it looks like it came from the follow-up factory, not from you or your sales person personally. The further away you get from the personal touch, the more your returns diminish.

Save yourself a ton and keep it simple.

Why won�t they follow-up?

The biggest reason sales people don’t follow up with their customers and prospects is that management doesn’t require it. Because most managers don’t understand follow-up and don’t know how to do it personally, they can’t teach their sales people or even work with them to do an effective job of building or maintaining a customer base.

To get back to the original question about manufacturers creating loyalty from our customers - just assume it will never happen. Then instead of waiting for someone else to come along and build your customer base or save your dealership with a great retention program, do it yourself and do it now!

Start now! Too many people never start because they can’t see how it works. Don’t worry up front how everything will work out or how to create the perfect follow-up system ... just start now and you’ll begin to see measurable results within 45 days.

Don’t keep waiting - do something now!

Joe Verde is the president of the Joe Verde Group. He can be contacted at 866.429.6689, or by e-mail at [email protected], or visit www.joeverde.com.


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KarenDillon

Increase Sales, Customer Satisfactionand Loyalty in the Service Department

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leadership solution

With the reduction in vehicles coming across the service drive, due to vehicle quality improvement, extended manufacturer

maintenance schedules and loss of service work to independent repair facilities, we must maximize the revenue from every customer we do see.

This can only be accomplished effectively at your dealership through proper planning, training and goal setting.

• Planning – A defi nite process must be in place so the advisor is fully aware of the service history of the incoming vehicle and is ready to greet each customer and make the additional recommendations for service for which the vehicle is due.

• Training – Your service advisors need suffi cient training so they are comfortable asking the customer to purchase additional services. This training must be on-going and should provide them the proper word tracks, so they can be successful. Fear of rejection will come into play on the service drive as it does in any sales situation. If service advisors are confi dent in their ability to properly present the necessary services to the customer and do this consistently, you will see a defi nite increase in your average $/RO.

• Goal Setting – When you initially put your plan into place, you should establish sales goals for each service advisor. They should be reasonable, measurable and reviewed on a monthly basis for adjustment.

Pull the ROs for the last 100 people who came into your dealership for service and review the service history for each, you’ll fi nd 80 percent of these would have had up-sell opportunities.

Once you have this process in place, it is imperative that you take a serious look at how you turn your less-than-satisfi ed and satisfi ed customers into totally satisfi ed and loyal customers, as this is a critically important step in increasing customers in both your service and sales departments.

As more and more incentives are tied to CSI, dealerships face increased challenges as they continue to look for ways to satisfy their customers and keep them loyal. This is most diffi cult in the service department. When a customer purchases a new or used vehicle, there is the initial euphoria of ownership, which assists with increased customer satisfaction; however, when the car is in for maintenance or repairs, we don’t enjoy that same customer outlook. Many times, the attitude of the customer is more negative - from the inconvenience, cost or both.

The primary driver of long-term profi tability is customer loyalty, and providing top-notch customer service fuels that loyalty. But acting on such knowledge is surprisingly complicated. To really please customers, you must know how they perceive their

experience in your dealership. Also, customer satisfaction is notoriously hard to measure and interpret. Customers describing themselves as “satisfi ed” are much less likely to stay loyal to your dealership than those who are “totally satisfi ed.” Gauging their loyalty is critical, as it will let you know where you need to make changes and improvements. A number of companies employ secret shoppers who rate their experience with that company. Management will generally provide them a checklist and they will rate each area, based on their personal visit and experience. If you really want to know how your dealership service department is being perceived by your customers, you need to make a concerted effort to put yourself in the customer’s shoes. Also, having a secret shopper is one way to gather unbiased feedback.

Good management means all associates at your dealership are on board with your goal of exceptional customer service. You then need to be sure your customer-facing employees have the information and authority to solve customers’ problems. Next, create an environment in which people are motivated to want to provide stellar service and then teach your employees how to deliver great customer service. They should never hear you make negative comments about a customer who comes in with a complaint - they should understand that there are customers who are pleasant to deal with and those who aren’t. Many times if you handle the most diffi cult customer’s issue promptly and effectively, he or she will become your most loyal customer.

And, remember, last impressions are lasting impressions. Be certain that the last thing the customer hears when leaving your dealership is, “Thank you. We appreciate your business.”

Karen Dillon is the president of TimeHighway.com. She can be contacted at 800.901.3170, or by e-mail [email protected].


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ProResponse is the only system I have ever used where the sales people are actually motivated to use it. Our new car sales are up 21% in one year.-Jeffrey Abel President, Miller Toyota

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NADA2005



BruceThompsonsts ms ls fi s sf

marketing solution

Big Box Retailers andthe Automotive Industry

The retail world has been drastically redefi ned in recent years. We now have Wal-Mart, Circuit City, Best Buy, Home

Depot, Lowe’s, Sam’s, and Costco to compliment our new Big Box neighborhood grocery stores. These companies are making money and achieving phenomenal growth. They keep pushing the envelope for new technologies and processes to sell more products in a more effi cient manner.

We can learn a great deal from the Big Box Retailers. CarMax certainly has. Circuit City’s fi ngerprints are all over the CarMax business model. They have applied the same type of inventory controls and processes they developed for their electronic products. As a result, they have been able to succeed at Big Box Used Vehicle retailing where others have failed. They have broken through automotive cultural barriers to bring a sophisticated inventory mentality to the used car industry.

What are the major differences between Big Box retailers and Automotive retailers?

1. It does not make sense for a single position to control both retail operations and inventory responsibilities. Not only is the Used Car Manager responsible for the management of his department, he or she is also responsible for wholesale buying and selling of his inventory. If a manager has the sole responsibility of merchandising and retailing his inventory, the retail results will be much better. When a manager is at the auction two days a week and dealing with wholesalers the balance of the week, then he or she is being pulled in two completely different directions.

An inventory manager should have the responsibility of stocking the lot accurately using intelligent inventory tools. “I think, I feel” decisions need to be eliminated as we acquire vehicles worth thousands of dollars. If the inventory manager has done his job, the used car manager can focus on retailing inventory that is optimized for his lot. This is exactly what CarMax has done. Inventory managers don’t have the same job responsibilities as the sales manager.

Millions of dollars are tied up in dealership inventory. A vehicle is an asset, just like a stock. We would not buy stock unless we had researched it enough to make an educated decision. Also, we would put a stop loss on the commodity to quickly liquidate it should it not perform. Typically, in the used car business we buy a vehicle because we like it; not because we know on average, if we have a cost basis of $15,000, it will sell on our lot in 13 days and yield a $1,700 front-end profi t. We also have no real processes around aged inventory. We try to retail out of it, instead of methodically re-pricing and merchandising our aged units.

The used car manager needs to be a retailer. An inventory manager or inventory department can fulfi ll inventory needs with the help of a sophisticated inventory management system.

2. Big Box retailers price their inventory according to the market. Dealerships price their vehicles according to what they have in them. To help dealerships achieve better position in the marketplace, there are new technology tools. These tools help dealers acquire and aggregate previously confusing vehicle market pricing data and deliver it in a way that allow dealerships to competitively price their inventory. The tool will take a VIN and search all competitors’ advertised listings of the same vehicle within a 50 mile radius of the user. It will even compile all the listings with similar odometer readings, average them and give the user an accurate Suggested Retail Price. The user can then drill down to see his competitor’s online listings.

If retail prices are set competitively, we have a much better opportunity of retailing vehicles quickly. Inventory turn is crucial because it can tie up a dealer’s cash reserves. Vehicles are depreciating assets and therefore need to be sold in a timely fashion to maintain margins and avoid wholesale loss. As sophisticated retailers, we need to reduce our margins as a vehicle ages; not margins in relationship to costs, but margins in relationship to the market. If I have the cheapest ’02 Mustang GT in the market, the odds are I’ll be able to sell it. Once inventory has aged 35-40 days, it should be aggressively market priced in order to

quickly retail. The difference to the dealer is thousands of dollars. An aged front line unit loses $1,800-$2,100 at a brick-and-mortar auction. An average retail sale will gross the dealer $2000 in front and back-end profi ts. Therefore, the wholesale/retail delta on an aged unit is $4000.

The key is knowing how to accurately set your retail prices. Once you have this intelligence, you simply install and enforce the right processes around it.

3. Big Box Retailers embrace technology and innovation. They are continually looking to develop better inventory tools.

There are inventory management systems on the market today that are partnering with brick-and-mortar auctions to help dealers acquire the right inventory at the right price. Through an intelligent online auction platform, dealers have the ability to bid on a fi ltered supply of vehicles. Based on their own historical sales information and local market data, they only have the opportunity to bid on vehicles they need and vehicles that perform extremely well. The system matches the dealer’s vehicle needs to available online inventory supply. It’s like a customized lane for each dealer.

Dealers are now adopting this tool and as a result are seeing much better performance with their used vehicle departments. They are turning inventory quicker, making higher gross and eliminating wholesale loss.

Technology is fi nally making its way into the used car industry. As we learn from other big box retailers, we need to embrace and apply those technologies and processes that help us be better.

Bruce Thompson is the chief executive ofÞ cer and founder of American Auto Exchange. He can be contacted at 800.901.3017, or by e-mail [email protected].

To Whom It May Concern:

On behalf of our entire dealership we wanted to take a minute to let you know that everyone at our dealership really enjoyed working with all your people. We were extremely pleased with the great job everyone did at our sale. We had a manager’s huddle after your people left and covered a few ideas that we picked up from your desk Managers, Dave Gifford and Mark Walton along with your closers. Our fi nance people picked up a few good points that they know will help them pick up gross profi t. Your salespeople along with your lot gentlemen made the place look so good, with all those balloons and tags on the cars, we know it built excitement for the customers that entered our dealership on those 3 days. And your clown, Padro did great with all the children while their parents bought cars, he was very good. We can’t thank you enough for all the help and ideas. Our greeters even picked up a few good ideas from your girls. We look forward to our next sale with the Wolfi ngton Company. Your people were positive and full of energy.

Please pass this letter along to all the people who helped, so their efforts don’t go unnoticed.

THE BEST KEPT SECRET IN THE AUTOMOTIVE INDUSTRY!

ASK YOUR 20 GROUP!toll free 800.331.9361

Belinda Wortherspoon,Wolfi ngton Group Call Center Operator

3810 HECKTOWN ROAD � EASTON, PA 18045 � PHONE: 610-253-9191

MILHAMDIC

K

FORD --- TOYOTA --- SCION --- SAAB

NADA2005


ScottJoseph

If You Want Real GrowthStart With the Simple Fundamentals, Part 2

Last month we discussed the importance of putting more of your ad dollars toward direct-response advertising,

the importance of making it easy and fun to do business with you and to make sure in every ad you run to tell the customer why you are making a particular offer to them.

This month we’ll wrap up the simple fundamentals of marketing by covering three topics that can make or break any advertisement you run.

Stick with marketing campaigns that are still working!Many dealerships change campaigns indiscriminately in mid-stream. In the process they:

1. Don’t let the cumulative effect of a winning concept work for them.2. Don’t allow the dynamics of testing to work for them.3. Make a patchwork quilt of their company’s image and persona.

Dealers get tired of their advertising and marketing campaigns long before the marketplace ever tires of them.

Test to fi nd out which ad, marketing or sales approach works best. Then, only change that approach if and when a new ad or concept outperforms your benchmark. Continually experiment with new ideas, ads and concepts without abandoning the one that works best. If an approach works, don’t arbitrarily abandon it – only replace an approach when you have verifi ed and validated a more successful and profi table successor.

Most ads or commercials produce only a modest percentage return every time you run them. Direct-response ads usually produce a 1/2 percent to 3 percent response. You may have to run them 200 times before you even begin to saturate your market.

The only vote that’s relevant is the vote of the marketplace.

Test different concepts, approaches and ideas, but never abandon your benchmark ad or concept until you fi nd something that pulls better. Try to develop new approaches

using a related or similar view when you are tempted to abandon a winning, producing and profi table approach of which you grow.

If you have found the combination to your customers’ responsiveness, keep going until the combination stops working.

Regardless if it is TV, radio, newspaper or direct mail, always focus on the intended customer and no one else!How many times have you scanned an ad in a newspaper and not had the slightest idea what it was all about or from whom the information was intended for? Even worse, you had to search to fi gure out which dealership ran the ad.

Remember these key points:1. Attract the attention of your target audience in your headline or opening remarks.2. State your proposition or offer.3. Use the rest of the ad to develop, support, and present your offer and your reasons why the prospect should respond to it.4. Finally tell the prospect how to act.

From now on, always telegraph your message only to the people who are your primary prospects. And never again be content with humorous, nonspecifi c or abstract headlines or ads.

Test and Measure the Effectiveness of Your Advertising to Improve Your ProÞ ts.The purpose of testing is to develop maximum performance from every marketing effort. Yet, it’s amazing how few dealerships ever test any aspect of their marketing and compare it to something else. They bet their destiny on arbitrary, subjective decisions and speculation.

First, we don’t have the right, or the power, to predetermine what the marketplace wants and what the best price, offers or hooks will be. Rather, we have the obligation, and the power, to put every important marketing question to a vote by the only people whose ballots count – prospects and customers.

How do we put a marketing question to a vote? By testing one sales thrust against another. One price against another. One

ad concept against another. One headline against another. One TV or radio commercial against another.

When you test one approach against another and carefully analyze and tabulate the results, you will fi nd that one approach substantially outpulls all the others by a huge margin. You’ll be amazed at how many more cars you can sell with the same time, effort and money.

If you run ads in newspapers, TV or radio, test different approaches, different headlines, hot-button phrases, packages, pricing, and bonuses on top of the basic offer.

Once you identify the most successful combinations, your work has just begun. Keep experimenting to come up with even better approaches that outpull your current control. Your control is the concept, approach, offer or sales pitch that has consistently proven, through comparative testing, to be your best performer. Until you establish your control concepts, techniques and approaches, you can’t possibly maximize your marketing. Once you fi nd your control, keep testing to improve on its performance, thereby replacing one control with a better one.

An ad costs you the same amount of space, production time or airtime whether it produces 100 ups, 1,000 ups or 10,000 ups. Therefore you should start testing everything right now.

For some this seems like a lot of work. Some people take their total ad budget for the month and simply divide it by the number of vehicles they sell each month. When that fi gure comes out to be $250, $350 or $450 per car, they think everything is OK and doing well. The reality is if they actually took their ad budget and divided it by the number of deals actually sold from a specifi c ad that number would skyrocket to more than $800 per car. Wouldn’t it be great to fi nally know exactly what ads are bringing in all the traffi c and, more importantly, which ones are not?

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].

sts ms ls fi s sf

marketing solution


NADA2005


BryanHopkins

Internet Department Generates Extra SalesWhile Elevating Skills, Morale & Professionalism of Entire Sales Team

Family owned and operated since 1959, Ted Britt Ford has been recognized 11 times as a leader in customer satisfaction

by Ford Motor Company. The dealership has received the “Distinguished Achievement Award” for sound business practices while also being recognized in the Washington metro area as the top-rated Ford Dealership for service and repair and as the Washington metro area’s top-volume Ford Dealer. With so much going right in sales and service, we were determined to hold our Internet department to the same high standards. When I came on board fi ve months ago, there were two people handling all the leads and selling about 15 to 20 cars per month, and it appeared that they were doing well. The challenge was that we had no idea how many leads were coming in, what the conversion ratio was, the appointment ratio, the show ratio or the closing ratio. When we put those metrics under a microscope, we realized we were missing some opportunities. When we began closely tracking and measuring our performance results, we found that an unacceptable number of people who submitted a lead were showing up for their appointment but not buying a car. We realized we were unprepared when the customer arrived and that the Internet appointments were often handled by an inexperienced sales person with minimal product knowledge who lacked the skills and know-how to build value in all that our dealership has to offer. Our new Web site, www.TedBritt.com, was generating more leads than ever before, and we needed a way to handle these leads that would live up to the Ted Britt standards of excellence in customer service. To handle the traffi c increase while simultaneously bringing more new sales people up to speed, our training partner suggested we modify our Internet sales model to incorporate an Executive Sales Mentor (ESM) program. As a result, we’ve increased Internet sales, closing ratio, customer satisfaction and employee satisfaction while reducing turnover with the following model:

1. Central Internet Hub &Auto Response:All inbound Internet leads (regardless of source) come to a central hub and are dispersed to the appropriate Internet Sales Manager (ISM).

2. Personalized Response &Phone Call:The Internet Sales Manager responds to the lead with a personalized response within 20 minutes and immediately follows that with a phone call to set the appointment. The personalized response contains all the information the customer requested plus detailed information on four new cars and two used cars. Ours is a very competitive market, and if you don’t give the customers what they ask for they’ll go to someone who will. We also discovered that people don’t always buy the vehicle they originally inquired about, which is why we offer alternatives. When a customer inquires about a new vehicle, the ISMs respond with MSRP, invoice, available rebates, and stock numbers on four new vehicles, as well as Internet pricing on two used vehicles that are similar to the requested model, but less expensive.

3. Automated Follow Up:Sometimes the fi rst round of phone calls results in an appointment, but often the longer buying cycles require ongoing e-mail follow-up. The great thing about our system is that it automates really cool and appropriate e-mail follow up when we put in the lead status. Customers will get video presentations and customized e-mails for 30 days depending on the status of the lead, which allows the ISM to focus his or her energies on calling the customer to schedule an appointment.

4. ISM transfer to ESM:Once the ISM sets an appointment, the ESM and appropriate sales manager are brought up to speed with all the background information they need to make it easier to close the deal. The customer’s name is showcased on an appointment board, the vehicle they’re interested in is cleaned and parked out front and the ESM clears his or her schedule a full 30 minutes before the customer arrives.

The mentor program has proven to be a great motivator for our people and a great way to create a more comfortable and pleasant process for the customer. To qualify as a mentor, a sales person must sell at least 15 vehicles per month on a six-month running average and maintain higher than average CSI scores. In exchange for training and mentoring new members of the sales team, the mentor earns the right to work with appointments, that are set by the Internet department. More high quality opportunities for the sales people, more communication between departments, greater incentives to achieve and maintain above average volume and CSI scores result in a better experience for the customer, extra sales for the dealership and a highly skilled and incentivized sales force. It’s a win for everyone involved.

Years ago, sales people ran away from Internet leads, but today our best leads come from our Web site, and sales people want as many as they can get because we’ve already started to build a relationship with these people; they know who we are, and they’re impressed with the response they get from our Internet Department. The comment I hear from our customers over and over again is “Wow … this is real time!” because they’re not accustomed to getting an e-mail and a phone call to answer all their questions within 20 minutes. The great thing about the Internet is that you can track and measure everything, and right now our closing ratio from the coupon leads that come from our Web site is 29.9 percent. If you were a sales person, would you rather deal with those odds or with a walk-in who knows nothing about the dealership? I know what the answer is at our dealership.

Bryan Hopkins is the Internet director at Ted Britt Ford. He can be contacted at 866.842.1968, or by e-mail [email protected].

Years ago, sales people ran away from Internet leads, but today our best leads come from our Web site, and sales people want as many as they can get because we�ve already started to build a relationship with these people;


sts ms ls fi s sf

marketing solution

NADA2005


march 2005 Advertisement

Sending boring and wordy messages will not likely motivate the consumer. Get to the point, use graphics, bullet points and customize the message as much as possible.

Relevance and Timing

DavidKainsts ms ls fi s sf

marketing solution

One of the greatest challenges faced by dealerships is discovering the right mix of e-mail

communications to stimulate a customer to action. This is always part of a lively discussion among Internet managers at workshops where I often hear “I wish they would just let me know they are receiving my messages” or “I would just like them to respond at all – even if it is to tell me no.” To these statements, the best answer is to try to think like your customer.

Thinking like the customer is easier said than done but let’s start with your own experience in reviewing your personal e-mail inbox. The typical e-mail inbox consists of a variety of offers from obscure companies offering you anything from low-rate mortgages to get-rich-quick schemes. Admittedly, spam fi lters have improved this but, nevertheless, some get by and then there are some from companies that we actually want to hear from even if we don’t want to act now. We often categorize them as “friend” on our fi lters. This allows us to scan the e-mail quickly and see if there is an offer that is relevant to our needs.

Relevance is the key to how the e-mail will affect the consumer. Consider how many advertising impressions the average consumer is exposed to each day. In researching for this article, I found opinions ranging from 850 commercial impressions (Arthur Anderson “Retailing Issues Letter” by Kenneth Banks – Volume 4 Issue 6 Page 1) to 3,000 daily advertising messages (“Data Smog Surviving the Information Glut” by David Shenk - HarperEdge, 1997). To say the least, this is probably overwhelming for the average consumer to absorb, so they adapt by fi ltering these impressions by relevance. If it is relevant, they will read it, and if it is not, they will ignore it.

Timing comes next and is equal to relevance. The fi lter for relevance may allow the message to get through but if the timing is not right, the consumer is not compelled to act. In considering the effect of timing once again you may want to review your own experience. You may want an iPod digital

music player enough to motivate you to do some research through various means – visit the Web site, visit a store or ask a friend to borrow their player. Now that your fi lter is open to this product, you will likely notice that they are everywhere you look – on television, radio, billboards, e-mail and your desire to purchase is increasing each day. However, you are setting aside a few bucks each day to make the purchase and you don’t have the amount needed yet. Your purchase depends on when you’ve set aside enough disposable income. As a result, the ads you see are relevant but the timing is not right. The consumer typically responds to advertising best when it is relevant and the timing is right!

This concept applies to a dealership Internet marketing. When consumers submit a request for information via your Web site or a lead aggregator, they seldom communicate what stage they are actually in despite radial buttons and check boxes provided to gather this data. We may wrongly assume if they went to the trouble to submit a request they are almost ready to buy. This may or may not be the case. However, we can safely assume that the information the customer is requesting is relevant to him or her even if the timing is not now. Passing the relevance test is all you need to know what to do next.

Here are some suggestions:• Subject Line – Your subject line must survive the delete button. Make

sure it is relevant to the consumer. Your chances of having the e-mail opened go up considerably if the subject is relevant. Even if the customer doesn’t open the e-mail, you gain an advertising impression if your subject includes the type of vehicle he or she is considering, plus your dealership name. Remember, this is a marathon and not a sprint with some customers.

• Logo – Second to your subject line is your logo when trying to create a lasting impression on your consumer. Consider your dealership stationery or your business cards – both have your logo on them and afford you the benefi t of a quick impression on your customer. I’m certain you would not consider mailing a letter to your customer on plain white paper in a plain white envelope with a business card without a logo. Each e-mail you send should include your logo.

• Message – Variety and value are important when considering your message. Sending boring and wordy messages will not likely motivate the consumer. Get to the point, use graphics, bullet points and customize the message as much as possible. By all means never tell the customers that you are putting them in an inactive status or removing them from follow-up or deleting them from your database. This may stimulate a few to respond but it alienates many who are waiting for the right time to buy. It also makes you out to be a liar if you continue to send them additional e-mails. Be creative and focus on the benefi t for the consumer.

Finally, be patient and use a good lead management tool. When your message is relevant to the consumer and the timing is right – they will buy!

David Kain is the president, Internet and BDC 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.


march 2005 43

MartyWatts

Applied Window Film Can Lower Temperatures and Reduce Air Conditioning Cost in Your Show Room

According to the California Energy C o m m i s s i o n , 30 percent of a dealership’s cooling requirements are

a function of heat entering through existing glass. Applied window fi lm is the least expensive solution to lowering temperatures and reducing air conditioning operating cost.

The good news is conventional tinted and refl ective applied window fi lms successfully block a signifi cant amount of solar heat. The bad news is that these same fi lms block a signifi cant percentage of visible light while darkening windows and reducing visibility through the glass. Not only does this cast a shadow on the showroom fl oor it keeps customers outside from seeing in as it changes the external appearance of your dealership.

Most conventional window fi lms transmit less visible light than the 70 percent necessary to be undetected by the eye. The result is a showroom often requiring the use of increased illumination. This leads to higher electricity consumption that may increase temperatures requiring more air-conditioning. Increased utility costs defeat the benefi t of the fi lm — cost savings.

Clear spectrally-selective applied window fi lm offers the best ratio of visible light transmission to heat rejection. Spectrally-

selective refers to the ability of the fi lm to select or let in desirable daylight, while blocking out undesirable heat.

The following table shows how different kinds of glass and applied fi lms transmit light and heat.

Car dealerships should consider the following when evaluating spectrally selective vs. conventional window fi lm:

The ideal fi lm would be totally clear yet able to signifi cantly block unwanted solar heat and reduce glare. Most dark and refl ective fi lms block so much visible light they appear unclear. Clear, spectrally selective fi lm, which blocks heat equivalent to many of the darkest fi lms, transmits 70 percent of the visible light.

With a shading coeffi cient as low as 0.51, some refl ective fi lms block signifi cant heat but many transmit as little as 15 percent of the visible light. When considering both heat rejection and light transmission, spectrally selective fi lms out perform conventional competitors.

Both conventional and spectrally selective fi lms can be applied to standard single pane and insulating fi xed glass, windows and doors. However, to minimize any potential problems, be sure installers have properly identifi ed your existing glass.

Both conventional and spectrally selective

fi lms professionally installed require no special maintenance and can be washed like regular window glass.

Many conventional fi lms are highly refl ective in daylight giving them a mirror like appearance when viewed externally. Clear spectrally selective fi lm does not change the appearance of existing glass, allowing its application on an entire building or on as few windows as necessary to deal with a localized over heating problem.

The price of dark, tinted and refl ective window fi lm ranges from $4 to $6 dollars per installed square foot. The best spectrally selective applied window fi lm ranges in price from approximately $9 to $12 a square foot installed. Installed prices are volume dependent. On larger projects such superior performing fi lms may be installed for less.

Considering the cost of energy used for lighting and air conditioning due to conventional fi lms inability to transmit suffi cient visible light, the payback for conventional fi lm and spectrally selective fi lm becomes comparable.

Marty Watts is the president and CEO of V-Kool, Inc. He can be contacted at 800.901.3053, or by e-mail at [email protected].

Type of glass orapplied Þ lm

1/4�� clear glass

1/4�� clear glass with tinted Þ lm

1/4�� clear glass withreß ective Þ lm

1/4�� clear glass withclear spectrally selective Þ lm

% of daylightthrough glass

% of solar energythrough glass

shadingcoefÞ cient*

% of visible lightreß ectance interior/exterior

luminous efÞ cacyconstant**

89

37

37

70

77

64

44

45

0.96

0.74

0.51

0.51

0.93

0.50

0.73

1.37

7/7

6/6

18/28

8/8

* The lower the shading coeffi cient, the lower the solar heat gain. ** Luminous effi cacy constant, a measurement of a window glass or fi lm’s ability to simultaneously block heat and transmit light. (Visible light divided by the shading coeffi cient). The higher the number the more effi ciently the glass or fi lm blocks heat and transmits light.

sts ms ls fi s sf

leadership solution

AnthonyHall

The Demo is Not an Option“If they don’t drive the car, they won’t buy the car.” This has been proven over and over, year after year. The likelihood of a

prospect buying a car goes down when he or she hasn’t driven the car. The demo drive is not an option.

Remember that buying a car is an emotional experience, and impulse often comes into play. So take every opportunity to arouse that emotion. The best opportunities occur during the demonstration drive.

Cardinal Rules of the Demo Drive:1. Don’t ask if the customer would like to drive the car. He or she may say no; instead show the interior features of the vehicle as the last step in your six-point presentation. While you have the customer in the vehicle either say, “let’s go for a ride” or just drive

away. It depends on who’s in the driver’s position.

2. If customers refuse to participate in a demonstration drive, call a time out immediately and get your sales manager involved.

3. You should always accompany the prospect on the demo drive. Many dealerships require that the sales person drive fi rst. You have the opportunity to push up the value so the (perceived) price goes down.

4. In many cases your prospect may not be familiar with the vehicle or your dealership area. If a sales person is not with them they can become confused with the vehicle’s features or the local area. Your prospect’s concentration is then focused on trying to fi gure things out rather than on features and how they can benefi t the customer.

5. Use short, commanding statements with expectation. You should control the sequence of events. In most cases, “no control, no sale.”

6. Always insist the wife drives fi rst and adjust the seat and steering wheel for her. Very rarely will the wife drive after her husband has driven the car.

7. Everyone that is going to be involved in the buying decision should drive the vehicle. Remember: It may be his truck but the wife is the fi nal decision-maker.

8. Have a preplanned route that starts out with right turns. This assist will give you control of the demo process. A preplanned route allows your manager to know where to look for you if something should happen. Like running out of gas, fl at tire or any other problem.

9. Allow the customer to drive as far and as long as he or she feels comfortable. “The feel of the wheel makes the deal.”

10. On the demonstration drive stop talking, stop selling and stop fact fi nding. Answer questions and then be quiet. Allow the customer to experience the car, not answer the sales person’s questions. Let the customer experience the car uninterrupted. Don’t distract them.

11. The exception to the previous rule: “Start the Movie.” Ask the customer where is the fi rst place he or she is going on vacation in the new car, or who’s the fi rst person the customer is going to show their new car to and what will he or she think? The prospect will start, direct and fi nish the movie in his or her mind. Fantasies sell a lot of vehicles.

Transition to negotiation. Always ask for the purchase.

“Did you like the way the vehicle drove?”

If yes, “Great! Then is this the vehicle you would like to take home with you today?” The customer may say “Slow down I didn’t say I’m going to buy it” Proceed with, “I understand we still need to work out the details, but my question is do you feel this is the right car for you? Great, then do me a favor when you pull back into the dealership would you pull the vehicle into the sold lane.” Regardless of what your customers says, simply state:

“You may have noticed I’m not the only sales person who works here at the dealership. I would not want another sales person to take out your vehicle on a test drive with one of their customers, while you and I are inside working out the details for this car, do you? Well, that’s what I thought.

In order to help the other sale people know who is interested in this vehicle, why don’t you put your last name on the back of my business card and place it on the dashboard of the car. This will help cut down on any confusion regarding who is interested in purchasing this vehicle.”

Always prove the benefi ts of your vehicle in action. “A presentation without a demonstration is only conversation.” Remember - your prospects must own the vehicle mentally before they will pay for it fi nancially.

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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even when I share these ideas and suggest simple steps that can guarantee massive self-improvement and eventual success, I know that most people are comfortable being comfortable. Even when that means being comfortable with below-average results. Is my statement negative or just recognition of reality?

Successful people create their own reality. Most people who would take the time to read articles like this are part of the minority of action-takers. For your action takers, let me share just a few ideas on action, the reasons for a lack of it and some corrective measures.

1. Write down the fi rst 20 ideas and teachings that you learned about money. Did you hear these typical messages? “What do you think we are, rich?” “Money doesn’t grow on trees.” “We can’t afford that.” “Money is the root of all evil.” You are more infl uenced by early learning than you might believe. Many ideas and messages you hear

from TV, teachers and even parents are negative and rooted in scarcity. The root of the word scarcity is scare. When was the last time you saw a movie or TV program in which the rich guy was the good guy? 2. Are you clear in your goal of what you desire? Have you written it down? Less than 5 percent of people will ever write their goals and begin to focus on their desires and action plans to get there. Clarity of thought creates questions that bring answers.

3. When you write a goal, you are making a conscious choice. Your actions, however, are often directed by your subconscious messages. Often the goals you have chosen with your conscious thought and the actions you take directed by your subconscious are in direct confl ict and opposition. This is why at times you can feel such an enormous state of struggle. The only way to get past the struggle and create positive action is to remove the negative and opposing messages and images in

your subconscious. When you write your goals, what are the limiting thoughts and feelings that pop up that are implanted in your subconscious? Once you have identifi ed them, rewrite them to erase the limits and negatives. Create a conscious and subconscious that acts in unison.

4. Write down your top fi ve largest fears. Fear can be described as false evidence appearing real. We can escalate fears or goals to reality. Both are simply a choice. What are your most dominant thoughts? Do your thoughts lean toward action, achievement, success and abundance or toward lack, scarcity and fear?

Only through action can you make the necessary mistakes that will lead to success, rewards and happiness. Nobody has ever sat and watched their way to success.

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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march 2005 45

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