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Autosuccess Feb04
1. Win a FREE trip for two to the Kentucky Derby! pg.13
.biz
Bryan Anderson
Closing Won’t Hurt You
February 2004 Asking for the Sale
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5. It’s WAR Out There!
THIS MAN MEANS BUSINESS
TM
James A. Ziegler
SALES MANAGER FORUM:
Motivating your Sales Team to Higher Profitability
“
Taught By James A. Ziegler
Atlanta, GA Feb. 10 - 11, 2004 Are your
Las Vegas, NV Mar. 17 - 18, 2004
Atlantic City, NJ April 13 - 14, 2004 troops
Denver, CO April 20 - 21, 2004 prepared
Atlanta, GA May 11 - 12, 2004
Chicago, IL May 19 - 20, 2004 to fight
for higher
THE COMPLETE F&I
MENU SELLING SYSTEM
Present 100% of your products 100% of the time!
Taught By Becky Chernek
Sponsored By Jim Ziegler & Ziegler Supersystems, Inc.
profits?
”
Charlotte, NC Feb. 17 - 19, 2004
Atlanta, GA Mar. 16 - 18, 2004
Chicago, IL April 13 - 15, 2004
Las Vegas, NV May 11 - 13, 2004
Dates and locations subject to change
t Jim’s
C heck ou te at
Web si rsystems.com
glerSupe n on
www.Ziean find informatio side
You c s plus in
future seminar ore!
dm
news an
DON’T MISS Jim and the Ziegler Supersystems team
at the NADA 2004 Convention in Las Vegas, NV. Stop by the DEALER magazine booth #1837.
Mr. Ziegler’s “Are You Ready To Run With the Big Dogs?” NADA Workshop schedule:
Sunday, February 1, 2004 . . . . . . . .11:00 am – 12:15 pm
Monday, February 2, 2004 . . . . . . . . 8:30 am – 9:45 pm
Tuesday, February 3, 2004 . . . . . . . .11:00 am – 12:15 pm
PLUS…Mr. Ziegler will be the keynote speaker at the AutoTeamAmerica 10th Annual CFO Forum
January 30, 2004, 2:00 pm, Paris Hotel, Las Vegas, NV.
To register contact Sue Van Tornhout at 866.233.9053 or online at www.autoteamcpa.com.
6. sts ms ls fis lr
sales and training solution Mark Tewart
By Mark Tewart
Closing Won’t Hurt You
Why won’t the Giving too many payments confuses and you couldn’t find your keys, and when
customers just say, customers rather than providing clarity. you went into the house to search, you
yes? Why do they found them. Now that you found the keys,
stall, complain, 4. If a customer says no to your how long would you keep looking?”
object and shop? offer, deÞne which of the three M’s it is. “Based upon the vehicle you are buying,
Why does it have to The objection will either be money, me or the deal you are getting, and what you
be so hard? The answer to all this is to stop the machine. You can rarely fix a vehicle told me you wanted, you are not making
complaining and take control. If sales were problem with money. a mistake!”
an easy game, everyone could do it, and “Sometimes, the hardest part of getting
your value as a sales person would be much 5. Move toward HFG – Hope for Gain. what you want, is simply deciding to do
lower. From the beginning of time until the Remember, the customer wants to buy the so.”
end of time, people will need to persuade vehicle even more than you want to sell it. “Tight budgets are like tight shoes,
people and close deals. Let’s examine how You always have the power. Remind the sometimes you have to stretch them out a
you can do it better. customer why this vehicle is making their little.”
situation even better. Remind them why “We always feel the payments are scary.
1. Ask more assumptive they wanted the vehicle in the first place. The funny thing is, in a few years, you will
questions that assume the sale. People will jump over mountains for what wish you could get this payment, that you
Examples: What do you like best about they want, when they often won’t cross the are scared of now, on your next car.”
your new vehicle? What’s the best thing street for what they need.
about this vehicle you will enjoy vs. your 8. Practice give/get.
present vehicle? 6. Utilize emotions to inßuence logic. When customers want you to give them
When people negotiate too long they enter something, ask for something in return. If
2. Use more stories. into a logic only mode. Use emotional the customer wants lower payments, ask
Facts tell; stories sell. Use vivid, visual triggers. Ask them how they feel. Take them for more cash investment, longer
images of them using and enjoying the them back to the vehicle. Nothing creates term, lesser model or a different way to
vehicle. People need the social proof that emotions like the vehicle. Share what they finance (lease or smart buy). Never give
stories give them. Stories let people know are getting for the money. unless you ask to get back. Associate
that you, your customers and others have pain to them asking, don’t reward them
made the choice successfully before them. 7. Eliminate risk discounting immediately. Flinch when the
and take them to the future. customer asks for a concession. Concede in
3. Give each customer three options Use the following closes: small amounts and descending order. Don’t
on every proposal (the power of threes). “If you had a guarantee that would allow give up the farm. Let them know that the
Three choices give the customer the feeling you to do business, what would it be?” concessions are getting smaller or ending.
of being in control, by having choices “If you could wave a magic wand, what Validate and verify what you asked for and
without being overwhelmed. Don’t be risk would that magic wand remove?” why before you ever concede.
confused by people telling you to give “If you don’t buy, where do you go from
customers twenty choices on payments here? What happens next?” 9. Use the admit technique.
or never to work payments until the “If it were 30, 60 or 90 days from now, and Don’t feel you have to handle all objections
customer gets to F&I. They are wrong. you are buying a car, and you’re perfectly right away. Agree with the customer.
Not giving payments makes most people happy, what one condition is being met that Example: Objection, “Too high.” Answer,
angry because they are negotiating things allows you to do business?” “I agree Mr. Customer, a nice car in today’s
they don’t understand, which causes fear. “What if you went to get into your vehicle market with the nice equipment, like you
are getting, costs a lot of money. Did you
want to look at more cash investment or a
longer term to ease the monthly budget?”
AT T E N T I O N : Closing is not a dirty word and does not
•Automotive Dealers have to mean manipulation. Most customers
need help to influence their decisions.
•Ad Agencies Otherwise, customers would buy the first
place they shopped. All things being equal,
•Automotive Marketers!! price will be the final determinant. A sales
person’s mission is to master their skills
Automotive Ad Planner Kit On Interactive CD-ROM to elevate value above price. Close, close,
24 Campaigns Included!! close or be broke, broke, broke.
(Limited Supply Offer) Mark Tewart is the President of Tewart
Enterprises. He can be contacted
www.FishMarketingOnline.com at 866.429.6844, or by email at
mtewart@autosuccess.biz.
6 successful solutions at www.autosuccess.biz
7. sts ms ls fis lr
leadership solution TimothyTimothy Gilbert
By Gilbert
Northwood University’s Programs
Fill Unique Niche for Car Buffs
Not unlike many program is attracting students as well. The a higher level of professionalism in the
teenagers, Michael program focuses on the manufacturing and automotive industry. They train the next
Crabbe and Kyle distribution of automotive, heavy truck and generation to improve the overall reputation
and Jake Odum agricultural industry parts and accessories and performance of professionalism of
all had a passion, that are sold through aftermarket the industry,” said Gilbert, Automotive
cars. For different distribution channels. Marketing Chair. “What appeals to me
reasons, these students all chose to attend personally is to see the individual growth
Northwood University, the only accredited As these examples note, the reasons and maturity that takes place as a student
college in the nation offering associate’s students choose to pursue AA and BBA joins Northwood as a freshman and
(AA) and bachelor’s (BBA) degrees in degrees in Northwood’s Automotive matures into a graduating senior, poised
Automotive Marketing/Management. Marketing/Management and Aftermarket and ready to assume their productive role in
Management programs are as varied the industry. We are a small campus with a
A sense of family responsibility and a desire as makes and models of cars. While world-wide reputation,” he added.
to assist their older brother drove Jake and at Northwood, Automotive Marketing
Kyle Odum to attend the program. Jake, a students design, orchestrate, manage and To learn about this year’s Auto Show visit:
Northwood junior and transfer student from host the largest outdoor auto show in the http://www.admissions.northwood.edu.
Clemson University, and Kyle, a freshman Southeastern United States. They are
from TL Hannah High School in Anderson, assisted by classmates from all over the Timothy Gilbert, Associate Professor
SC had heard about Northwood University world, thanks to articulation agreements and Suzi McCreery, PR Director at
through their dad who owned a Dodge with colleges including Germany’s BFC– Northwood University Florida Campus
dealership in Greenville. Calw and the Georgian College of Canada. can be contacted at 866.274.3792, or
by email at tgilbert@autosuccess.biz.
When their dad unexpectedly passed away, “What attracted me to Northwood was the Northwood University is a non-proÞt
they knew what they had to do in order fact that they believe so strongly in creating organization.
to assist their older brother, Tanner, who
stepped in to manage the dealership. “His
death was a shock to us all. All of a sudden
we had such a responsibility to continue
the growth and expansion of the business
he and my grandfather built twenty years
ago,” said Jake, who had originally planned
to finish college at Clemson. “We knew that
by attending Northwood, we’d be learning
information that would be of value to the
dealership,” he added.
For Michael Crabbe, the motivation was
that he wanted to be part of Northwood’s
Annual Auto Show. As president of
Woodlands, TX high school “Car Club at
The John Cooper School” during his senior
year, he followed his older brother’s lead
and raised $2,200 for his hometown’s local
Habitat for Humanity. While organizing
the show, he secured more than 70 cars,
including a dozen Ferrari’s, American
Classics and off-road vehicles.
“Many have written off my passion for
cars as a boyish obsession that will be
forgotten as I grow older. However, I have
been able to take my love for cars and use
it to accomplish great things for others. It
was good to see how my hard work, effort
and passion for cars all combined to create
a car show that was able to bring peoples’
interests for cars together for a good cause,”
noted Crabbe on his admission essay.
Northwood’s Aftermarket Management
february 2004 7
8. sts ms ls fis lr
sales and training solution Darin Darin George
By George
Asking for the Sale
Many sales people Step 4. How about the vehicle?” If they do have
are not sure when to Ask the customer, “Did you enjoy the concerns or questions, answer them.
ask and how to ask ride and features of the vehicle?” If yes,
the customer for proceed. Step 6.
the sale. Some are Ask the customer, “Okay then, if there was
hesitant to be that Step 5. anything preventing you from getting the
aggressive, high-pressured sales person. Ask the customer, “Do you have any
Don’t forget why people come to your other questions about the dealership? continued on page 29
dealership. You have to earn the right to
ask for the sale.
Here is a good checklist:
Did I introduce myself properly? Did I
ask all the contact questions? Was a full
presentation and demonstration drive
done? Do they want my vehicle? Did I
sell the customer on our dealership? Have
I been professional?
If you have done everything possible for
the customer, ask for the sale.
The following is a non-pressured,
consistent and very powerful way to
ask. The emotional intensity level of the
customer is at its highest, and how you
proceed from here will determine if you
sell the vehicle.
Seven steps to asking for the sale.
Step 1.
Offer the customer a beverage. This is
done to build more rapport and induce the
law of reciprocation with your customer.
“What do you take in your coffee?”
Step 2.
If you have any questions that you have
not answered for the customer, answer
them now, before you proceed. This is
done to establish trust and credibility in
you.
Step 3.
Tell the customer, “Now before we go
any further, I want to make sure that we
have selected the correct vehicle?” (Look
for a verbal or a physical gesture, i.e.
nodding of head.) If everything is okay,
tell them, “I have a few questions to ask . Freight extra
you, and, if you could, answer them as
straight forward as possible?” This is See us at NADA Convention
done for clarification. Booth # 5463
8 subscribe today at www.autosuccess.biz
9. sts ms ls fis lr
sales and training solution Brian Brian Ankney
By Ankney
Forced Logging
Invest $0 and get customers should be reviewed by a manager purchase a vehicle or the manager approves
1.5 additional within two hours of the contact. This allows the reason for which they are no longer in
sales per sales the manager to advise the sales person’s the market. When a customer takes delivery,
person, per month. next step or take a TO before the customer put the stock number and date next to their
The expense cools off or visits your competition. name. If they will not buy, add a manager’s
associated with note for the reason. This system effectively
driving traffic into dealerships is too large Manager approval required to not sell. takes the power to blow out customers away
to ignore any potential business from walk- Desk managers generally do a good job from the sales person and gives the manager
in traffic. Showroom traffic control can be monitoring the customers on the floor and control of the floor.
summed up as forced 100 percent logging, offering assistance to sales people. This
immediate manager review of client assistance becomes less effective once Next step.
contacts and manager involvement before the customer leaves the store. It is too Inform your team of the importance and
any customer is deemed dead. hard to use logs alone to guarantee that no benefits of this system. Train them to follow
customers are forgotten. A good showroom this process. You will see additional sales in
Forced logging. traffic control system will ensure that every the first 30 days. Within 90 days you should
It is important to have every floor, phone customer buys a car or that a manager realize 1.5 more sales per sales person, per
and Internet customer logged. One hundred approves the reason why they do not. This month. Showroom traffic control is a simple
percent logging allows managers to ensure can be accomplished by placing every way to improve your sales department in
every sales opportunity is maximized. up into the sales person’s pool of active less than 30 days. It is easy and your sales
Managers can only help sales people customers. Keep a list of every customer people will appreciate the larger paychecks.
deliver cars to customers they know about. each sales person ups on the floor, assists on
By setting firm, defined rules that prevent the phone or answers through the Internet.
missed opportunities, sales people will Maintain separate lists for each sales person Brian Ankney from AutoClick can be
see a personal value to logging. Allow in a binder that is kept at the manager’s contacted at 866.247.9587, or by email
sales people to maintain rights to every desk. Customers stay on this list until they at bankney@autosuccess.biz.
customer for which they have completed
the mandatory dealership follow-up. For a
customer to qualify, they must be logged
within an hour of first contact, including
phone and Internet customers. Once 100
percent logging is achieved, managers
can get involved with every customer,
monitoring sales and follow-up processes.
This true logging will also produce
accountability in the step sale. When
sales people log every up, managers have
good statistical information that will make
weaknesses in the step sale apparent.
Managers can use this information to
continuously improve sales people with
training and coaching. Place a floor, phone
and Internet log for fresh customers on the
manager’s desk, and get started today.
Review every logged customer contact.
Emotion drives customers to purchase new
vehicles. The best opportunity to sell a car
is when the customer is in the showroom
and emotions created by an effective walk
around and demo drive are running high.
Once the customer leaves the dealership
these emotions diminish quickly. The same
is true for Internet and phone customers, a
website, ad or something related, excited the
customer enough to contact the dealership.
Strike while the iron is hot, and make sure
that every attempt is made to bring these
customers into your dealership, before their
excitement dies. Floor, phone and Internet
february 2004 9
10. sts ms ls fis lr
marketing solution Jeff Fishel
By Jeff Fishel
Promotional Event Advertising
When it comes to First, plan your events far in advance. offers to your customers.
building urgency Planning ahead in this manner allows • Staffing additional F&I managers
in the minds of you to select your best promotional days, and sales managers to process the
potential car buyers, weeks and months of the year and can, extra business during the event.
nothing is more potentially, save you up to 40 percent in • Having the telephone operator
effective than a one your media expenditures. answer all calls with enthusiasm:
to five day automotive event promotion. “Thank you for calling ABC Motors…,
Second, do your research in order to are you calling about the Big Sale?”
Most people want the best car deal right determine what vehicles are selling well, • Structuring the lot for increased
now, and whoever will give them the best currently in your market. To do this, you traffic as well as getting the banners
deal right now will get their business. may need to access current DMV reports hung and balloons placed, etc.
in order to discover what customers are • Pricing each vehicle in order to
Regarding car buyers and the ‘best-deal- buying in your market, at any given time. maximize its marketability and
right-now’ factor, nothing lends more showcasing your old-age units for
credibility to this concept than a one to five Third, purchase your inventory ahead immediate elimination.
day automotive sales promotion. Consider of time in order to best complement the
the ‘single day slasher’ or ‘price slice’ event. For example, if you wish to have Sixth, launch the event.
events. These are so effective in drawing a ‘Spectacular Truck Extravaganza’ two
customers because the event is only here months from now, then start buying and Seventh, evaluate your results.
for one day and then it is gone. This creates trading as many trucks as possible, today.
urgency. Stock up the hottest selling inventory The beauty of event promoting lay in
available and perhaps a few ‘price leaders’ the post-evaluation. Because one to five
Automotive sales events like this will as well. day campaigns are modulated into such
generally pull the largest share of the tight time frames, they allow you to
‘now’ buyers in your market, at any given Fourth, select your most effective immediately evaluate your success in the
time. Again, now buyers are those in media and dominate. Don’t spread your following ways:
your market who could be persuaded to advertising messages too thin with shallow
purchase a vehicle right now. And, because placement. Dominate the mediums that • Traffic counts
one to five day event promotions create will best reach the now buyers in your • Closing ratios
such urgency in the minds of these now market. If it’s direct mail or newspaper • Breakdowns by make & model or
buyers, they tend to be drawn in greater inserts, go with maximum quantities. new versus used sales
numbers to these events. Future shoppers If it’s traditional newspaper, go with a • Gross profit
or those who intend to buy next week or minimum one-half page above the fold,
One to five day automotive sales events
next month are also pulled in at greater in full color. If it’s radio and TV, strive
are an ideal way to credibly promote
percentages to be closed at these sales. for the most media points in multiple day
your dealership and inventory to the now
parts as your budget allows.
buyers in your market, at any given time.
This is a classic example of the advertising
Furthermore, event promoting provides
sizzle (events / offer / time limit / urgency) Fifth, stage a meeting to ensure all
you with the means required to instantly
overpowering the advertising steak managers and sales people understand
evaluate the success of your advertising
(branding and merchandising). The sizzle the details of the event. At this meeting
during these one to five day intervals.
of the event promotion is, in effect, the discuss the following:
promise of the best deal right now for the Jeff Fishel is the National Sales
car buyer. • The proper logging of ups and TOs Director for FishMarketingOnline.net,
to management. FishMarketingOnline.com and
Here are seven steps designed to increase • The exact details of the campaign IndependentAutomotiveMarketing.com.
your ROI for your automotive event and how to overcome potential snags He can be contacted at
promotions. in the explanation of the event and/or jeff@Þshmarketingonline.net.
Would you like to win a FREE
trip for two to the Kentucky Derby?
10 visit us at www.autosuccess.biz
11. sts ms ls fis lr
sales and training solution TerryByL. Isaac
Terry L. Isaac
Competition Drives Production
Competition drives rules for doing business, outside the Our business is noted for the bonuses we
production. This rest of the team, they will break the pay out. You name it, TVs, cash, trips,
is an important other sales people’s drive. You cannot etc., sales people like to see what they’re
element within your show favoritism, you must be fair and competing for. Make it visual; it’s more
sales team. Selling consistent to all. effective. Take $500 in cash, and write
is a war between down different amounts on pieces of
you and the rest of your field. You should 4. Spread out opportunities. Give paper: tens, twenties, fifties, put them in
expect this mentality from your sales bones to the team on performance, balloons, sell a vehicle, pop a balloon.
people. Do not let them be complacent reward in a rotation. This will
with performing below standard, they promote the sales people to raise their Sales without competition will only
have to have fire in them and take pride in performance. promote complacency, and your job to
their performance. At the first of the month motivate your sales team just becomes
they should be waiting to see if they are 5. Set performance standards. Setting harder. You must strive to instill energy
number one. Being number one is the goal performance standards will keep the and motivate your sales team to use their
of a top sales person, and being number team on an equal playing field. resourcefulness.
two isn’t good enough.
6. Keep the sales team motivated.
When you are adding personnel to your When motivating your sales team,
sales team, look for the type of person who you must realize that what works
will compete with the top sales person as for one, may not work for the next. Terry L. Isaac is the Corporate Sales
well as the rest of the team. The only way A pat on the back will work for all Trainer for the Neil Huffman Auto Group.
to challenge the team with new personnel employees, find something they’ve He can be contacted at 866.265.4680, or
is to train them on the know-how and instill done right and tell them. by email at tisaac@autosuccess.biz.
in them that they can dominate the force.
Training people who dominate the sales
team in their first month of performance
effects the top performers when they see
they have lost to a new sales person, who
may have never even sold in this business.
This gives them a wake up call to perform
at their highest potential, and it tests their
pride. It will also get your team back on
track and dropping the bad habits or short
cuts they have been taking.
Competition is the natural law. There are
two kinds of competition you want to
achieve, one is the individual, having the
sales team compete against each other,
and the next is the dealership, as a team,
against your competitors. The inside
competition will raise the level of the
dealership’s competitiveness as a whole.
Keys to achieve a competitive floor.
1. Train and motivate all new hires.
Train them and coach them to compete
effectively, with a highly competitive
attitude. This will also eliminate the
fear factor and make them feel more
equal.
Learn how a J.D. Byrider franchise can add to
2. Create a fair playing field. This is your portfolio and increase your profitability at
key to having individuals feel they booth 5107 of this year’s NADA Convention.
have a fair chance to be number one.
3. Eliminate the buddy system. This WWW.JDBYRIDER.COM 1-800-947-4532
means if there are sales people and
managers who have their own set of
february 2004 11
12. sts ms ls fis lr
marketing solution Jim Gutzwiller
By Jim Gutzwiller
Loyalty Programs Can Work
Customer loyalty while establishing a relationship with the time after time. Give discounts on high
can be one of customer. dollar services, over the counter parts
the most costly and accessories. Some programs ‘bank’
entities of your A loyalty program should not be geared a percentage of parts, service and body
dealership. Other toward one particular department. There shop revenue toward the purchase of a
business segments must be value for all profit centers, new vehicle. Other programs accumulate
have developed loyalty programs that everyone needs to participate in the cost ‘points’ based on services or dollars spent
work. Progressive dealerships can do and reap the benefits. which may be used in the boutique or
the same increasing vehicle, parts and for additional services. It is important
service revenue. In this article, we will A successful loyalty program. to be creative when developing awards
discuss important loyalty program issues Loyalty programs provide value for the programs. Don’t be afraid to discount 50 oil
dealerships can address to drastically dealer and customer alike. The successful changes or expensive transmission services.
improve customer relationships. program can increase vehicle sales by 6 Include free trip and seasonal inspections;
percent or more. It is not uncommon for chances are they will need some other type
How effective programs are established. service to increase revenue in excess of of maintenance. The key is to get the total
Many factors must be considered when 16 percent via increased RO count and the package value up with real and perceived
establishing a successful loyalty program. increase in multi-line ROs. value items. Every dealership is different;
The program that works for one type of use a combination of real and perceived
dealership most likely will not work for Loyalty programs should contain sufficient value items and services.
another. Clientele and location are major value to motivate customers to come
factors when considering a successful back to the dealership, just offering free Value for each department.
program. The goal of any program is to or discounted oil changes will not do the The loyalty process actually begins in the
bring customers back to your dealership, job. Programs containing awards that sales process; properly structured programs
sell additional services and products have real value will bring customers back continued on page 29
12 check us out at www.autosuccess.biz
13. THE #1 SALES-IMPROVEMENT MAGAZINE FOR THE AUTOMOTIVE PROFESSIONAL
win a FREE trip for two to the
Kentucky Derby!
Saturday, May 1, 2004
Includes lodging, airfare and two tickets to the 130th Annual Run for the
Roses! Guaranteed winner, all survey information must be Þlled out clearly
and faxed/mailed back before Thursday, April 8, 2004, 5pm EST. Please
fax complete entries to AutoSuccess at 800.869.5432, or mail entries to
AutoSuccess Derby Giveaway, 756 South First Street, Suite 202, Louisville
KY 40202. Must be a dealership employee to enter, one entry per person.
KENTUCKY DERBY TRIP GIVEAWAY REGISTRATION FORM*
*Survey must be Þlled out clearly and faxed/mailed back in its entirety to qualify.
Þll out and send back
• Name: • Email Address:
• Dealership: • Franchise/Make:
• Address: • City, State, Zip:
• Phone Number: • Fax Number:
1. What is the biggest challenge that your dealership faces today?
2. Are you able to use any articles during training or meetings?
3. What topic(s) would you like to see discussed more, in further detail or eliminated?
4. Have you ever contacted a writer from AutoSuccess Magazine? Why?
5. Have you ever contacted an advertiser from AutoSuccess Magazine? Did you utilize their service/product?
6. Do you receive a subscription to AutoSuccess, or are you on the rotating comp. list?
7. Where do you invest your advertising dollars? Newspaper, Radio, TV, Direct Mail, Internet?
NOMINATE ONE OF YOUR SALES PEOPLE (optional)
If you have a sales person that meets or exceeds your standards as an outstanding sales person, and you would
like to nominate them to be featured in AutoSuccess Magazine, please email lindsay@autosuccess.biz.
14. AutoSuccess, the #1 sales-improvement magazine for the automotive
professional, has teamed up with cross town Louisville Slugger to bring
you the best double play in the business. Order your 1 year subscription
to AutoSuccess at our everyday price of $75 and get your own official,
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CALL TODAY! 866.269.8604
15. sts ms ls fis lr
leadership solution Joe Verde
By Joe Verde
Great Coaches and
Leaders Set Goals First, Part 2
Only 3 percent of related to reaching each of your • Review your goals daily, so that you
all the people in activity and results goals. stay focused and on track.
the US set goals the • Work your plan every day, not some • Don’t quit until you hit your goal.
right way. It’s also days, not when you have time, not
a fact that only 3 when it’s convenient…work your Joe Verde is the President of The Joe
percent of all the plan every day, without exception. Verde Group. He can be contacted
people in the US ever get to the top in their • Monitor your progress. That means at 866.429.6689, or by email at
profession or to the top in their personal track everything you do, so you know jverde@autosuccess.biz, or visit
endeavors. when and where you’re off course. www.joeverde.com.
Last month, we discussed the qualities
of a great coach or an exceptional leader.
This month, let’s start at the top of the list
of what differentiates great leaders and
coaches from average. One of the biggest
differences is that great coaches set goals
for themselves and their team. Here are
some tips this month on how you can
become a better leader by setting goals for
your sales department.
Goal setting is the most basic principle
of success in sales, business and life.
Dealers and managers realize that people
with clear goals succeed. They also see
how they can control units, gross, net and
annual growth in their dealerships through
goal setting.
The challenge.
Too many people confuse long, hard work
and good intentions with setting realistic
and achievable goals and having a good
plan to follow.
They forget that good intentions are vague
statements, and that long, hard work, too
often, doesn’t lead in the right direction.
And they forget that projections, forecasts
and good intentions all lack the most
important key to success, a plan of action.
The steps to setting goals.
• Find out exactly where you are now
(that would be your 90-day rolling
average, called a current average).
• Figure out what you want and where
you want to be, and turn it into a goal.
Leave out words like ‘try’ and phrases
like “We’ll give it our best shot.” Say
you will reach your goal instead.
• Write a step-by-step action plan of
the activities you need to do to reach
your goals. Caution: Be complete
here, too.
• Assign everyone in sales,
management and every department
specific responsibilities for achieving
part of the goal.
• Learn all you can about everything
february 2004 15
16. fs feature solution
BryanBy Bryan Anderson
Anderson
Building Processes
Building Relationships
Building Sales
The greatest tools in the world will be one persistent challenge remains: without Dealers that have managed to
relatively ineffective in the absence solid processes, even the best technology- implement and maintain effective,
of process. Customer Relationship based CRM can fail to generate additional profitable procedures in their
Management (CRM) is a prime example, sales. dealership have won the hardest
requiring not only the proper hardware battle but remain handicapped by
and software but also consistent hands- This challenge has become more evident antiquated manual methods that limit
on processes that perpetuate success. with the wide variety of automotive their levels of success. Incorporating
CRM software currently available in the technology-based CRM should be
Technology-based CRM is a great marketplace. Dealers must sort through relatively easy, provided the CRM
advantage in the automotive retail all of their CRM options to find the vendor fits its system into the dealer’s
industry. Managing customer information solution that will build strong procedures framework of successful processes.
and building relationships was previously around powerful software.
a manual task, with handwritten
tools being used almost exclusively. Wrong Tools Right Tools
Technology definitely has its place in the
showroom.
Poor Processes Failing today, and not
planning for tomorrow
Struggling today, and
wasting money on
The popularity and affordability of PC- technology
based networks – combined with the
increased accessibility to the Internet Great Processes Struggling today, but Succeeding today, and
showing strong potential building for tomorrow
– resulted in a wide range of software
solutions for automotive dealers. The
task of tying these tools together proved 2. Right tools / poor processes:
to be complicated in many cases. Very few dealers actually fit into the Dealers that have stepped up to
‘wrong tools / poor processes’ quadrant. the plate and invested in the right
The top CRM vendors have, for the most It’s nearly impossible to stay in business technology for their showroom
part, managed to put these complications without embracing at least one of these have made a wise decision, but
behind them. First of all, taking advantage primary factors. However, not enough too often they fail to build good
of software during the sales process was dealers fit into the ‘right tools / great processes around the hardware
no longer a secret; in fact, it is difficult to processes’ quadrant either, even though and software and therefore never
find a dealership that doesn’t use a PC at technology can be found in every achieve the success envisioned at
some point on the road-to-the-sale. showroom in America. Specifically, as it the outset. Even the best tools must
relates to technology-based CRM tools, be used correctly and in the proper
Second, by integrating with major DMS the proportions are roughly the same. environment in order to work at all.
providers and utilizing existing or off- Most dealers fit into one of the other two
the-shelf hardware solutions, vendors are quadrants: It is important to note that merely being
able to deliver the software that dealers electronic does not make a tool the ‘right
demand. But once the solution is in place, 1. Wrong tools / great processes: tool’ any more than having a process
16 www.autosuccess.biz
17. Dealers must sort through all of their CRM options to find the solution
that will build strong procedures around powerful software.
means you’ve got a ‘great process’. about them. But technology-based CRM the showroom, the various sources of
However, the electronic nature of CRM products allow dealers to target their customer information and the skill level
tools allows dealers to capitalize on existing customer base in an effort to of their team.
technology throughout the entire sales generate additional traffic.
experience. Consider your own dealership. What
Your CRM solution must have the tools and processes do you have in place
The most valuable CRM tools impact one immediate ability to send email / that truly set your sales force up for
of three process-related scenarios: Web ads, print letters / envelopes, and success? Why would the best automotive
generate call lists for sales people / BDC sales representative in town want to work
1. Streamlining an existing representatives that target any imaginable for you? Why would the best manager
successful process. cross-section of your customer base, want to work at your store? As a dealer,
2. Facilitating the creation of new including current prospects / leads and bring to the table both the tools and
processes when none exist. previously sold customers. This new the processes that allow sales people
3. Affording a choice when more process, impossible to fully execute and managers to excel. If you already
than one process is available. without technology, can easily become fit into the ‘right tools / great process’
a routine part of each new incentive group, congratulations. But if an honest
Existing processes. announcement. assessment reveals your inclusion in
A popular wall poster in conference one of the other groups, it’s time to take
rooms is the dealership’s own Choice of processes. strides in a new direction.
handwritten ‘road-to-the-sale’ chart, Entering or gathering customer
bulleting the steps that should be taken information involves a variety of If you believe your dealership has great
with each new opportunity to sell. In the processes, depending not only on sales processes but merely lacks the right
presence of technology-based sales tools, the dealership but also on the type of tools, you may be a prime candidate
dealers and managers now have a way to customer. Some dealerships prefer for technology-based CRM. If you’ve
monitor the progress of this procedure on driver’s license scanners for floor already invested in technology only to
an individual basis. traffic, while others utilize a ‘hawk’ in find that the same problems still exist, ask
order to start new records. Phone and yourself why. You must make sure that
With the correct CRM tool, the road-to- Internet leads require yet another method you have the proper training, technical
the-sale can not only be customized for for gathering customer information, support and great processes built around
each dealership but also tracked on a and referrals/friends/family further the right technology. Your CRM vendor
per customer basis by sales people and complicate matters. Your CRM tool should be eager to work with you to
managers. should have the flexibility of well- develop and implement the processes that
designed software that refuses to cookie- maximize the value of your investment in
New processes. cut the data entry process. hardware and software.
Dealers are keenly aware of new
Bryan Anderson is the Founder and
incentives, and big signs and painted Management should determine the best President of AutoBase, Inc. He can be
windows ensure that customers who processes for their individual store, contacted at 800.320.0897, or by email
would have visited anyway know all based on the networked hardware in at banderson@autosuccess.biz.
february 2004 17
18. sts ms ls fis lr
f&i solution GeorgeGeorge Jackson
By Jackson
Ensuring Greater
Loan Approval
Loan approval is manager get involved. It does not matter
one of the primary who gets the loan approved, as long as
responsibilities it is approved. Put your ego aside for the
of the business benefit of the dealership. Also, never lie
manager. When or misrepresent a credit application. Your
they work hard to reputation and image is more important
get loans approved and exhaust every than any single car sale.
option on the credit application, everyone
in the sales department notices. The Complete an interview.
nicest thing a sales person can say about When a customer has marginal credit, the
a business manager is that they get deals dealership decides not to spot the customer.
purchased. Until the lender approval is One of the biggest and most common
secured, nobody receives payment. Listed mistakes that a business manager makes
below are a few areas to consider when in this situation is not interviewing the
attempting to maximize loan approvals. customer before they leave the dealership.
Sometimes, the sales department takes it
Develop a Þrst tier. upon itself to send the customer home.
One of the first things to do is to establish a This is a huge mistake. When the lender
primary tier of lenders to send every credit conditions this application, it is up to the
application to. Unless it is guaranteed to business manager to call the customer
be approved and only needs to go to one and gather information. When this call
source. This top tier should include your is made, it is a red flag to the customer.
captive source (GMAC, FMCC, etc.), one What are your odds of getting information
or two lending institutions and a good that can help you, if the customer is at
marginal source. Those in the first tier work or with friends (assuming you
should work hard to stay there, and those reach the customer)? In doing this, you
in the second tier should strive to become have added one of the biggest killers of
a first tier lender. The top tier of lenders a car deal into the mix, time. You have to
should be used before sending any deal to interview the customer before they leave
the next tier, and it should receive 70 to the dealership to get more accurate and
80 percent of your lending business. It is timely information.
better for the dealership to send most of its
business to a few sources and hold them Monitor lender performance.
accountable for performance as opposed Finally, you have to track the performance
to having seven or eight lenders getting 10 of each and every lender in the business
to 15 percent of your business. office. The best way to do this is to use
a lender call-in/call-back log. These logs
Improve the callback. are more effective than deal sheets, as the
The business manager’s job is to turn sheets stay with the deal, are filed with
every turndown into a condition and every it and are of no use after the deal jacket
condition into an approval. This is difficult leaves the business office. The logs allow
because of lenders’ adherence to internal the business manager to share valuable
scoring systems and Fair-Isaacs. Many information with the lender to improve
of the personal relationships that have performance and contract share. The log
existed have developed into computer- tracks turn-around time on loan responses,
generated responses and fax callbacks. percentage of approvals, percentage of
The best way to improve your initial conditions, percentage of turndowns and
lender call is to send customer information tiers for every deal. Without this log, the
and supporting documentation in with lender will not only have more information
the credit applications. Do not hold it but more leverage with the dealership.
back. When you have a chance to rehash Track them and make them accountable to
a loan response, be prepared. Have your you, not you to them. After all, you are the
information ready. Gather information customer, not the opposite.
and supporting documentation to support
the customer’s explanation. Fight only for
applications that have merit, and never George Jackson is the Director of
go over your lender to their supervisor, F&I Training for American Financial &
unless you are ready to go as high as Automotive Services, Inc. He can be
you can. Also, do not ever be afraid to let contacted at 866.280.0301, or by email
the management team over the business at gjackson@autosuccess.biz.
18 stop by www.autosuccess.biz
19. Topics Covered:
• Maximum net profit from gross generated
• Balance and maintain 60 day turn
• Proper training of pre-owned salespeople
• Purchase trade methods for proven success
• Appraise for maximum trade potential
• Never have over-aged problems again
Tim Deese
Dates: Locations:
February 19-20 Jacksonville Beach, FL
March 9-10 Las Vegas, NV
March 25-26 Jacksonville Beach, FL
April 22-23 Jacksonville Beach, FL
Call for more information and details
Jay Dyer 1-800-266-7408
Visit our website: Progressive Basics, Inc.
www.probac.com 1855 Wells Road, Suite 8
email: PO Box 922 ation
pbasics@aol.com Orange Park, FL 32067 A ssoci up
State 20 gro
and
Phone: 904.264.7408 king
spea ments
Fax 904.264.7409 ge
enga ilable.
ava
20. sts ms ls fis lr
leisure & recreation Brian By Brian Manzella
Manzella
Get in Position to Play Your Best
The sole reason for The proper positioning of the elbows is Many modern players carry the straight back
setting up to the ball more downward than outward. From here to the extreme which includes the upper
in a certain manner the golfer can turn his left arm and wrist 90º back and the ‘head up - look down’ that
is to put yourself in a during the backswing for a classic top-of- Murray saw as a poor player’s fault (Pic 1).
position to hit the ball the-backswing position. If the left elbow is The better players who start ‘head up’ almost
properly. On standard turned outward, you can only turn the wrist always return the neck to near parallel with
shots, hitting the ball properly is hitting the that amount to get to the same destination. the ground to look straight at the ball and
inside, back of the ball, on the way down, The right arm should bend straight up and have the better clubface control that comes
with the face slightly open. That’s the reason down during the backswing, which is only with the proper neck position.
for setting up a particular way. It’s not to possible from the elbow down condition
‘line up at the target’. It’s not to get you in an at address. Otherwise, the golfer must To get into the proper posture and position
‘athletic position’ or any of the other clichéd also rotate the right arm as it bends on the at address, use a mid-iron and stand erect
axioms. You can line up 30 yards left like backswing. It is also easier to put the right with the proper grip and golf arms holding
Lee Trevino or 30 yards right like Bobby forearm at address more closely on the plane the club out in front of you. Separate your
Locke and still be a world-class player. You it will be on during the last moment before feet until the middle of your feet are as wide
can look hunched over like Allen Doyle or impact (Pic 2). as the outsides of your shoulders. Your right
have your legs wide apart like Moe Norman. foot should point straight ahead, and your
But, on a basic shot, you have to put yourself Posture is often overlooked by golfers as left should be turned very slightly outward.
in a position to create a downward blow and unimportant and taught incorrectly by well- Your toes should both be touching the
hit the correct part of the ball. meaning but misinformed teachers. Author same parallel line. Using your right hand,
HA Murray talked about the common extended wide from little finger to thumb,
You can accomplish these imperative outline to the neck and shoulder area of the put the thumb on your belt buckle (ladies
functions with a less than classic looking champion golfers. His research revealed that approximately two inches below your belly
setup. You could try to follow the incorrect these outlines showed a definite roundness button) and your pinkie on the butt of the
notions of modern pop instruction’s idea of to the upper back and neck area compared to club. Keeping these contact points together,
correct form at the address position. But, if ‘average’ players. This upper body posture bend from the hip sockets, with your back
you follow the following guidelines, you allowed the golfers to look straight at the straight, until the club contacts the ground.
will have a better setup than Tiger Woods. ball as opposed to the duffer’s propensity Then, relax your upper back and neck, and
for looking down their nose. This posture look straight out of your eye sockets just in
Let’s assume you have the classic neutral includes the neck being nearly parallel to front of the clubhead where the ball would
grip described in September’s article. the ground at address. This trait is shared, at be (Pic 1).
least at impact, with nearly 100 percent of
The first step is creating, what I call, ‘golf the great players from Vardon to Woods. There are two schools of thought on ball
arms’. After most golfers grip the club, even position: constant and multiple. I have taught
if they have a good grip, their arms are in Because most poor players don’t bend over it both ways. The best way (in my opinion)
less than ideal position for executing a golf at the hips nearly enough, teachers started to is a constant ball position just inside the left
swing. They often have elbows pointing notice how straight the lower backs of the shoulder socket for all shots off of the ground
outward, their right arm is ‘on top’ of their champions were. What they missed, was that and right under the socket for teed drivers.
left, and their right arm is straighter than the ‘straightness’ ended in the upper backs of
their left. All are less than ideal. players like Jack Nicklaus and Sam Snead. This inside the shoulder position generally
20 successful solutions at www.autosuccess.biz
21. continued
1 (Pic 3) Looking at yourself in a mirror or on
video, look at these checkpoints. First, the
For a standard straight shot, lines across the
toes, knees, thighs, hips, shoulders and eyes
face-on view: two-inches-inside-low-point should all be on lines parallel to the ball-to-
ball position; stance width (this with a six- target line. The ball only knows what the
iron), elbows facing forward, butt of club at club is doing, so you could line up at Mars
the belt buckle, arms ‘unit’ appears centered and make a hole-in-one on Venus, but this is
to body, head behind the ball, and head, no a great starting point.
‘cocked’ left or right leaning.
(Pic 2) Rear view: Lower back straight,
upper back rounded enough for parallel-to- Brian Manzella is a PGA Teaching
the-ground neck position, butt of the club at Professional. He can be contacted
2 belt line, left arm barely visible above right
arm, arms hanging from shoulder sockets,
at 866.873.0036, or by email at
bmanzella@autosuccess.biz, or visit
eyes looking straight out at the ball. www.brianmanzella.com.
“My advice to anyone who wants to
get into the car business is to get
a degree from Northwood.”
3
Over the past several years, there is
possibly no other industry that has
undergone as much change as the
automotive business. As the American
automobile evolves, so must the auto-
motive marketing and sales profes-
sional evolve to keep up with these
changing times. The automotive pro-
fessional of the future will need to be
better educated, better motivated,
and more informed than ever before.
Northwood University is the first and
only business management college in
4
the country that offers a specialized
curriculum in Automotive Marketing
Management. We are also proud to
know that the future automotive deal-
ership manager of tomorrow is well on
the way of perfecting his or her career
today at Northwood.
Unique Philosophy
The Northwood Idea:
falls about two inches inside the golfer’s left free enterprise, practical management,
heel. Just move the club up the parallel to the global perspective, business/arts relationship
foot line that it is on, and place the ball so it
is on that line and slightly toward the toe-end
of the clubhead (Pic 4). NORTHWOOD UNIVERSITY
Campus Locations:
Adjusting for shorter and longer clubs is Midland, Michigan 800.457.7878
easy. For shorter irons, the stance becomes West Palm Beach, Florida 800.458.8325
narrower, until with a wedge the outsides Cedar Hill, Texas 800.927.9663
of the feet line up with the outsides of
the shoulders. With longer clubs than the Programs:
mid-iron, the stance gets wider, until with DeVos Graduate School 800.MBA.9000
a driver the insides of the feet line up with University College 800.445.5873
the outsides of the shoulders. For a driver
off of the tee, place the ball more toward the
toe of the club, and position the ball on the www.northwood.edu
left heel.
february 2004 21
22. sts ms ls fis lr
marketing solution Sean By Sean Wolfington
Wolfington
Courtesy Chevrolet Uses Internet
Marketing to Sell an Additional 85 Units a Month
Robert Reveere of 3. Email campaigns work. 6. The process is still most important.
Courtesy Chevrolet “I can send out thousands of emails within The key is to turn your email and phone
conducts email seconds, and, at the end of a long weekend, responses into appointments and sales.
campaigns monthly I can sell another 10 to 15 cars. And that’s
so his dealership the bottom line,” Reveere said. 7. You need to stand out in the crowd.
maintains as a top Dealers use high impact, multi-media
Chevrolet dealer in the country. 4. Email marketing is very measurable. emails that show miniature commercials.
You can measure everything, how many “We use buzzmails, and our customers tell
“We conduct different buzzmail campaigns emails were sent, viewed, converted into us all the time that they are blown away by
monthly, to our data base of customers. The leads, test drives, finance applications, etc. what they see,” Reveere said.
best part is, it only takes a few seconds and
doesn’t cost a dime,” Reveere said. 5. Email marketing is more interactive 8. Emails must work with all clients.
than any other medium. First, make sure your emails integrate with
Here are some of Courtesy’s secrets for It allows customers to click to build their popular systems: AOL, Hotmail, Outlook,
successful email marketing campaigns. vehicle, compare cars, view inventory, see etc. Second, your email marketing system
specials, apply for financing, buy parts, should be able to detect different security
1. Email marketing is inexpensive. schedule service appointments and more. settings, so it can deliver the right email
for the particular setting. Third, if you
2. It is easy to conduct a campaign. “The difference between mail and email use multi-media emails, make sure they
First, you pick a list of prospects, define is that after they read my email, they can are compressed and work on a low speed
your message and send it off. spend another 60 minutes interacting with connection, so people don’t have to wait.
me, and, by the time they call or come
“We have hundreds of pre-packaged in, they are further down the purchase 9. Gather a lot of emails.
buzzmails ready to send,” Reveere said. process,” Reveere said. “We have a lot of creative ways of
gathering email addresses on our website
and also gather emails from other parts of
the dealership. We use a service that crawls
the Web for our customer’s email addresses
and notifies the customer to ask if they want
to opt in to receive product and promotional
updates from our dealership. It is amazing,
because you can get more than 25 percent
of your customer base’s email addresses,”
Revere said. “Then we follow up by asking
them if they also want to get updates on
new products and promotions. In the end,
we have a lot of emails, and they are from
customers who asked us to contact them.”
10. Respect the law and customers.
Do not spam your customers. Follow all
the rules for email marketing, allowing
customers to opt out of your campaigns.
The challenge with email marketing is that
it is so easy and inexpensive many people
overuse it after their first success. If you
over do it by emailing your customers
multiple times a month, eventually they will
not open your emails, and many of them will
opt out. It is important to have a pre-defined
email marketing strategy that is spaced out,
and it is helpful to regulate the emails sent to
your customer base. The bottom line is that
email marketing is a free way to market and
attract quality traffic for less.
Sean WolÞngton is an Owner of BZ
Results.com. He can be contacted at
866.802.5753, or by email at
swolÞngton@autosuccess.biz.
22 subscribe today at www.autosuccess.biz
