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

1. AutoSuccess Predicts High Profit Year For New Car Dealerships
April 2006
8-Step Dealership Makeover
Proven Solutions from the Internet’s Master
Automotive Business Builders
Page 24
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©2006 AutoTrader.com is a trademark of TPI Holdings, Inc. and is used under license.

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4. Dean Evans David Kain Sean Chip Perry Scott Joseph
Vice President of President, Kain Automotive Wolfington CEO and President, President & CEO,
Marketing, Dealix Inc. Internet & BDC Owner, BZResults.com AutoTrader.com J&L Marketing, Inc.
Training Specialist Case Study: New Variable
You will learn: Case Study: How to use Internet Advertising Best Data Print Campaign
- Internet Marketing that You will learn: BDC/Internet departments Practices Management System
generates high quality - Mapping out the best to sell 100 - 500 extra cars increases Dealership’s
a month. market share from 8% to
leads Internet sales process You will learn:
- Maximizing lead - E-mail templates for the - How AutoTrader.com’s top 20% and grows net profit
You will learn: from $170,000 to over $1.6
generation from your best short and long-term - Setup a successful BDC/ performing dealers get their million in just one year!
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- Maximizing third party - Phone script elements - Use the Web to promote - Take home examples of You will learn:
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- Metrics that matter appointments - Use the Web to drive you can put to techniques using customized
showroom & phone traffic Web pages and direct mail.
- Focus on return on - Recruiting, hiring and immediate use - How to increase your floor
investment compensating for results - Sell old stock, vehicles &
parts inventory and phone traffic during your
- Use e-mail marketing slowest days of the week.
to drive more traffic for - A Growth Strategy to grow
your gross profit a minimum
zero cost
of 33%
Darren Haygood Jennifer Al Babbington Chris Hanson Rad Weaver
Director of CRM & Internet
Sales, Lokey Automotive
Picheco Chief Executive Officer,
CallCommand
Award Winning
DaimlerChrysler Sales Person
Red McCombs
Director of e-Commerce,
You will learn: Case Study: “Ford & Toyota
You will learn: Germain Motor Company Dealers today run the risk of
- How to groom your sales Dealer Sells 500 Extra Cars
- Maximize your ROI under-communicating and
Maximizing Your Internet people to be 20-plus car Online”
- Learn how to increase also over-communicating to people a month
your Internet dept. gross Department’s Potential their customer. So what’s - Proven processes that You will learn:
profit the right mix? work anywhere
You will learn: - How we increased our
- To price or not to price You will learn: - Show your sales people Internet sales from 40 to 500
- Stop giving units away just - Core structure: size
matters - Unlocking the potential in how to make, develop and in one year
to gain market share your database maintain Raving Fans
- How to stop selling price - Where you are vs. where - How we tripled our Web
- Understanding the lifetime - A sales process for today’s
and start maximizing ROI you’re headed site traffic through free
value of your customers sales person and customer
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come from - Automating professional &
Internet strategies for sold customers - How we increased out
- You heard the customer, consistent communication
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appointments, now what? for unsold customers
- Increasing repeat & - How we staff, train, pay
appointments into sales - When follow up is not - How to close over 35
enough referral business and keep great people
- Conduct monthly phone percent of your Internet - How we handle pricing to
- Attitude is everything - Increasing frequency of
blitz sessions leads and increase customer
purchase & spend per visit maintain gross profit
loyalty
Jesse Biter Dave White Ashley Antonio Jennifer David Thomas
President, HomeNet General Manager Internet CRC Director, Paragon
Honda
Lampinen Owner, Subaru of Dallas
Operations, DARCARS CRC Director, Paragon
Case Study: How Automotive Group Case Study: How to Acura You will learn:
proper online vehicle properly train and manage - How to cut your
merchandising can make Getting the Most Out of Your your CRC staff to ensure the Case Study: Key steps advertising expenses
you stand out Internet Department best results possible to becoming an award - How to get more exposure
winning CRC department for less expense
You will learn:
You will learn: You will learn: - Proper hiring practices - Gorilla marketing
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Harder handling the incoming and - How and when to train - How to create free
- Create a process-driven
- How to maximize sales on out-going Internet phone - Who to train environment publicity
the Internet calls - Where training should - Do you know what kind of - How to generate car
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processes that will maximize - The importance of mystery - Measure your results publications
appointments and sales phone shopping the - Think outside the box: - How I grew market share
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5. SUMMITIV
BEST PRACTICES
LEADERSHIP • INTERNET • CRM • MARKETING • BDC • SALES
May 18th and 19th, After our CFO and I attended our first Summit in Nov. 2004, we used the
2006. At the Venetian information to help us form our own Business Development Center. The
information provided by the vendors and dealers enabled us to cut out a lot
Resort and Hotel, Las of mistakes that would have been made without the information. In April 2005
our BDC was officially launched and is now the hub of our entire dealer group.
Vegas, NV In Nov. 2005 the BDC manager and I attended our second Summit. My BDC
manager was equally impressed with the content of the meeting and walked
away with a lot of useful information. I think what makes these two days so
Dealers & Managers informative is the fact that you not only see the applications available in the
Only! marketplace but you also see how they are used by real dealers. It would
take weeks to research this much information. I would recommend any dealer
doing business on the Internet to attend one of these. Thanks again, see you
at the Summit!
Two days of intense
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General Manager, Norris Honda
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6. 8 Working Well With Others BrianTracy
How to Get Dramatically Higher Response From Your Advertising, Better 10 JimmyVee & TravisMiller
Quality Ups, Higher Closing Ratios and Increase Sales and Profits
Start Achieving Your Sales Goals Today 12 SeanWolfington
Super Bowl Ads: Super Marketing or Super Waste of Money 13 MarkTewart
Internal Re-con vs. Sublet: 14 JimAdams
The Great Debate
Some of What I’ve Learned About Hiring 18 JeffMorrill
Use an Evidence Manual 20 KirkManzo
Taking Photos That Really Work Online 22 ChipPerry
What You Need to Know Right Now About Search 23 RadWeaver
Engine Marketing
8-Step Dealership Makeover 24
Proven Solutions from the Internet’s Master Automotive Business Builders
E-mail Address Collection: 26 BrianEpro
A Powerful Competitive Weapon
Three Simple Ideas to Improve Your Internet Results 28 DavidKain
Speaking Up for the Silent Majority 30 JesseBiter
Seven Habits of Highly Successful Dealer-owned 32 EricKauk
V.S.C. Programs
Winners Are Losers 34 ChrisAlford
If You Build It, They Will Come, Part 2 36 ChrisHanson
Five Critical Success Factors for Subprime Auto 37 TimShea
cover 24
How Are You Attracting Talent to Your Organization 38
You Are In Control 40
MichaelYork
DavidJacobson
Internet Marketing Can Be Easy 42 EricHinkle
Patrick Luck, Editor & Publisher Brian Ankney, Sales-improvement Strategist
luck43@autosuccessonline.com super6@autosuccessonline.com
Susan Givens, Vice President Brian Balash, Sales-improvement Strategist
sgivens1@autosuccessonline.com bb11@autosuccessonline.com
3411 Pinnacle Gardens Drive
Louisville, Kentucky 40245 Thomas Williams, Creative Director Charlie Tierney, Sales-improvement Strategist
design@autosuccessonline.com cpt2@autosuccessonline.com
toll free: 877.818.6620
facsimile: 502.588.3170 Courtney Paris, Sales-improvement Strategist Chris Feck, Sales-improvement Strategist
web: www.AutoSuccessOnline.com courtney.paris@autosuccessonline.com cfeck14@autosuccessonline.com
helping to promote... monthly verses...
Leviticus 25:18
“Wherefore ye shall do my statutes, and keep my judgements, and do them; and
ye shall dwell in the land in safety.”
God is the source of all supply
AutoSuccess Magazine is published monthly at 3411 Pinnacle Gardens Drive, Louisville, Kentucky, 40245; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccessonline.com. 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. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other magazine to which this
magazine may be linked from time to time. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in
whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that
names be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3411 Pinnacle Gardens Drive, Louisville, Kentucky 40245.

8. sts fos ls ms sf fis
BrianTracy
sales and training solution
Working Well With Others
A 20-year study at rapidly. Researchers concluded that there executive to keep his or her cool when the
Stanford University were two primary qualities that, more than company or the department faced serious
examined the career any others, were indispensable for men and challenges or setbacks. It was the ability to
paths of thousands women who were promoted to positions of calmly analyze the facts, gather information,
of executives to great responsibility. reach conclusions, make decisions and
determine what then mobilize the other people to respond
qualities they either had or developed The first quality was the ability to function effectively and solve the problem.
that enabled them to move ahead the most well in a crisis. It was the ability of the
The second quality that was identified among
the fast-trackers was the ability to function
“HE’S LIKE VIAGRA
R
well as a member of a team. This tendency
toward cooperation rather than confrontation
was evident early in a person’s career. It was
the primary quality that senior executives
looked for and rewarded the most. The
FOR YOUR ability to be a good team player inevitably
led to greater opportunities to function as a
member of more important teams. In fact,
teamwork is so important that it is virtually
TRAFFIC COUNT”
impossible for you to reach the height of
your capabilities, or make the money that
you want, without becoming very good at it.
- Tom Belt, Toyota of Escondido You can make the decision to be an excellent
team player in everything you do at work
How much does it cost and at home. Your aim should be to seek
out every opportunity to demonstrate your
every time someone at ability to contribute to the success of a group
of people in accomplishing large objectives.
your dealership talks to And you can start right where you are.
a customer and doesn’t Let’s start with the definition of team. A
know what to say? team is two or more people who combine
their talents and abilities to accomplish a
Alan Ram specific goal or series of goals. A team, by
definition, is made up largely of equals, men
In-Person and Interactive and women who are different only in their
areas of skill and who are peers when they
sit down together as a work group.
Solutions for Telephone/Internet A team is formed to take advantage of the
and Business Development. power of synergy. Synergy means the total is
greater than the sum of its parts. For example,
"Having utilized the services of many top-level automotive sales let’s say that four individuals working alone
will produce four units of work; when they
trainers over the years, absolutely nobody impacts our bottom are combined as a team, the four individuals
line while drawing the raves of our sales and management staff may produce five, six, eight or even 10 units
like Alan Ram." of work. One person working alone simply
- John Chmela, COO, Atlantic Auto Group cannot do many jobs, whether it’s carrying a
heavy box or carrying out a major corporate
project. A team needs to be formed whenever
toll free: 866.852.0328 the task at hand is greater than the capacity
e-mail: info@proactivetrainingsolutions.com of any individual working alone.
web: www.proactivetrainingsolutions.com Over the last few decades, the concept of
Viagra is a Registered Trademark of Pfizer, Inc.
R
teamwork has evolved rapidly. We came
8 www.autosuccessonline.com

9. continued
out of World War II with a “command and the teams, is lack of clarity. All the studies
control” mentality. Most of the heads of of team building and team development
American corporations, large and small, had focus in on the importance of everyone’s
been military officers of various ranks, during being absolutely clear about what the team
the war. They brought their training into the is trying to accomplish. This can be in the
workplace. Their approach to management form of a goal or objective handed down by
was the hierarchy or pyramid style, with the senior management, or it can be the result of
president at the top, the senior executives discussion and participation by the various
below him, the junior executives below them, team members. In any case, everyone must
and so on, all the way down to the workers know what is to be done, to what standard,
and support staff who made up the base of the by what deadline and what the roles and
pyramid. The orders traveled in one direction: responsibilities of each team member will be
down. Information filtered up slowly. People in the achievement of that goal.
were expected to do their jobs, collect their
paychecks and be satisfied. One of your key concerns is to be absolutely
clear about exactly what is expected of you.
However, two forces have converged to If for any reason you are not sure, bring it
transform this approach to management up and ask about it until you have no doubt.
dramatically. First, is the rapid rate of Then get busy, do exactly what is expected
change and the increasing complexity of of you and do it well.
even the smallest business operation due to
the advent of the computer age. Everyone Remember, in all your interactions with
has critical skills and knowledge that are your team, your role is to be supportive
necessary to many other people if the job and helpful. Your role is not to challenge,
is to get done on time and to an acceptable criticize or argue, but to look for solutions
standard of quality. and for opportunities to help other people
make their maximum contribution as well.
Your job in your company requires that you When you sit in on a team meeting, you are
know a lot about what is going on everywhere on stage. Everyone is watching you. The
else, as well as be thoroughly conversant best team players I have ever seen are those
with what you do. And the fastest and most whose comments to the other members of
accurate way of keeping current with what the team are in the form of suggestions on
is going on is to develop and maintain a how things can be done better. The best "Processing vehicles to the Internet
network of contacts, an informal team of team members are always offering to help has never been easier. We take
people within your workplace who keep you other people after the meetings to get on multiple photos of each vehicle and
informed and whom you keep informed. top of some aspect of their work. This focus save time with the VinStickers system.
on collaboration and cooperation is seen by The photo uploading is seamless,
The old methods of command and control everybody and marks you as a person to be simple and cost effective. Our sales
now exist only at the old-line companies, both liked and respected. data is accurate and powerful. We
many of which are fighting for survival. don't wait for someone once a week
Today, men and women want a high degree Many men and women have kicked their and the savings are enormous. We
of participation and involvement in their careers into the stratosphere by taking on a give it our highest marks."
work. They want an opportunity to discuss small responsibility and doing such a good
and thoroughly understand what they are job with it that they came to the attention
doing and why they are doing it. People of important people both inside and outside
are no longer satisfied to be cogs in a big their organizations.
machine. They want to have an integral role
in achieving goals that they participated in Continually look for opportunities to get onto
setting in the first place. teams and to make valuable contributions.
Volunteer for additional assignments. Focus
Being a team player is no longer something on high-priority tasks, and finish what Dustin Zeck - GM - Danny Zeck Ford
that is optional. Today, it is mandatory. If you you start on time. Do excellent work. And Lincoln Mercury, Leavenworth, KS
want to achieve anything of consequence, remember that, as Confucius said, “He who
you will need the help and cooperation of lots would be master must be servant of all.”
of people. Your main objective is to structure
everything you do in such a way that, because
you are constantly cooperating and working
well with others, they are continually open to
helping you achieve your goals as well.
Now, the major reason teams do not function
Brian Tracy is the chairman and CEO VinStickers.com
of Brian Tracy International. He can be
well, and why people end up not making contacted at 866.300.9881, or by e-mail at 866.662.1984
their full contribution to the success of btracy@autosuccessonline.com. sales@vinstickers.com
april 2006
9

10. sts fos ls ms sf fis
JimmyVee & TravisMiller
marketing solution
How to Get Dramatically Higher Response From
Your Advertising, Better Quality Ups, Higher
Closing Ratios and Increase Sales and Profits
Traditional hard- They are shape-shifters and chameleons. So Many of our hard-sell brethren are probably
sell advertising what’s the reincarnation of hard-sell? asking, “Where’s the hard-sell in all this?”
doesn’t work in The hard-sell sneaks in through the back
the Internet age. Education-Based Marketing door, unnoticed, when your prospect’s guard
There are other Author and expert copywriter Robert Bly is down.
ways to sell said, “Traditional marketing approaches,
with intelligence, and we’re going to tell you especially hard-sell, don’t work well on the What could be better than that? When has hard
about them. Internet or with consumers in the information/ sell ever flown in under the radar? Maybe in
Internet age. To get readership and response, the 1980s, but that was a long time ago.
What you are about to learn doesn’t stop at marketers have to create marketing messages
the end of this article. Once you start digging that look, feel and sound like objective, Imagine a bobcat sneaking into your tent
into this concept you will end up head-over- unbiased, useful information.” unbeknownst to you, and you only realize it’s
heels, face down looking into a rabbit hole sitting there licking its chops and sharpening
that goes deep. You have to decide whether to So, why does education-based marketing its claws once you’ve closed up the tent and
take the leap of faith or stand on the outside work radically better than traditional zipped yourself up in your sleeping bag.
while your competition jumps in with both marketing? Because traditional automotive
feet and reaps the rewards that come from marketing is all about the dealership, the It’s a little too late — you’re getting a butt-
being on the cutting edge. vehicles and the features, and no one really whoopin’ no matter what you do. That’s the
gives a rat’s butt about that. same way education-based marketing works,
Wait, we said “cutting edge.” Oh, this must except your prospects ask that bobcat to
be another article about the Internet right? Education-based marketing is about solutions come inside the tent thinking it’s a harmless
Wrong. — solutions to problems your customers little kitty cat.
face right now that they want to alleviate. A
This is not about the Internet at all. It’s about well-planned and -executed education-based This is cloak-and-dagger marketing, the kind
what the Internet has caused and why the marketing strategy delivers a much-needed of stuff that affects people emotionally but
traditional approach of hard-sell advertising cure to the pain your prospects are suffering. sneaks up on them logically. We know that all
isn’t as powerful as it used to be. For those buying decisions are based on emotion and
of you who are doing hard-sell advertising, If you can give your prospects the information backed up with logic. But the Internet has
you are going to be shocked and nervous. they need to eliminate their problems and screwed up peoples’ brains, especially when
For those of you who never embraced a ultimately provide them with a clearly defined it comes to car buyers. They are seeking the
hard-sell marketing approach you’ll be three set of steps to take you will win their business. logic first.
steps behind and we suggest you pack your You will become the expert in their eyes, they
parachute and hold on tight. will flock to you and price concerns will be So through education-based marketing we
secondary to the solution they seek, making give them the logic and they invite in the
The Internet has caused a massive change in your profits soar to new heights. emotional pitch and close. It’s really a perfect
the dynamic of our customers. They think marriage and a sound system when you think
differently today than they did in the past. But there is one caveat. You must give your about it.
They are more educated, and because of that prospects a way to get this information easily
they demand and respond to information- and without obligation. You must believe in But it’s not all fun and games. It’s not that
based, value-driven marketing rather than the the concept we call giving value first. We’ve easy. There are lots of pitfalls and trip wires
traditional hard-sell advertising tactics we’re all heard of added value or value after the that can derail your success and keep you
used to using in our dealership marketing sale. But that’s easy. That’s for wimps! In from reaching the goal — more ups, better
programs. today’s competitive marketplace you must quality ups, increased sales and profits.
deliver value up front, and your marketing
Some of you right now are raising the victory — if done properly — should be your first That’s why we’ve created the FREE special
flag exclaiming, “Finally the hard-sell days touch-point and should start the cycle. automotive business advisory for used car
are over,” and others are weeping over its dealers and managers, a 32-page industry
grave while still others are trumpeting the The value-first concept is nothing new. bulletin, “How To Uncover The Hidden
coming of our marketing savior, spending It’s old and timeless. It’s based in the law Wealth In Your Used Car Dealership.” This
all their time and energy moving their entire of reciprocity that states that others will report shows you how to set up an education-
operation online, believing that the Internet is reciprocate in-kind based upon the way you based marketing system at your store and
the second coming. treat them. The world gives you what you helps you avoid the pitfalls. To get your free
give the world. Ultimately, you are rewarded copy, e-mail us.
First, the Internet is just a tool, just another for the value you bring to the marketplace.
medium like newspaper, radio or TV. And
it’s one where price is king and gross is low Robert B. Cialdini, author of “The Psychology
unless you really know how to use it. of Persuasion,” explains, “One of the most Jimmy Vee and Travis Miller are the
potent weapons of influence around us is the founders of Used Car Marketing
Second, hard-sell advertising isn’t dead — it rule for reciprocation. The rule says that we Center. They can be contacted at
has evolved. It’s grown a third leg and wings. should try to repay, in-kind, what another 866.852.0145, or by e-mail at
That’s what good marketing concepts do. person has provided us.” J&T@autosuccessonline.com.
10 www.autosuccessonline.com

12. sts fos ls ms sf fis
SeanWolfington
leadership solution
Start Achieving Your
Sales Goals Today
What’s the difference 5. Identify special skills and training
between a goal and a needed
dream? A goal has a If a goal requires special skills, a shift
plan and a deadline; a in process, a new technology or new
dream does not. knowledge, you may need to partner with a
specialist, hire a training company or invest
This article will outline 10 tips for setting in internal training. Change does not happen
goals and getting better results, but first on its own.
we’ll look at the three reasons people fail to
achieve their goals: They don’t write them 6. Document a detailed action plan
down, they fail to craft a plan or they fall Take a look at where you are, where you
short of the commitments they make. want to be and create a plan to get there.
Consider what needs to happen, how it needs
It may seem simple to overcome these three to happen, who will be involved and when
stumbling blocks, but in the complex and you expect to accomplish each step.
often chaotic dealership environment, that’s
not always the case. When a manager or a 7. Take action every day
dealer establishes new goals or launches a Procrastination kills the best goals and the
new initiative in an attempt to find, sell and most detailed plans. The more ambitious your
keep more customers, there’s bound to be goals, the more important it is to chip away
more than one person involved in creating at them every day. Here’s where it helps to
an action plan. Without input and buy-in refer to that detailed action plan every day
from every stakeholder, delivering on your and continue to work at it. Follow up with
commitments may be further from your the people involved to keep them moving as
grasp than you imagined. well. Incentivise them if needed.
Here are 10 best practices for achieving your 8. Measure results
sales goals. It helps to track your performance results
and create top-of-mind awareness by posting
1. Put it in writing your results in an area that’s visible to
Identify exactly what you want to achieve everyone involved.
in the most specific terms possible.
Be quantifiable and measurable when 9. Celebrate success
appropriate. Once you start chipping away at your action
plan you’ll be hitting important milestones
2. Date it eventually. When you do, celebrate your
Set a date and a time limit for starting a goal success and spread the word. People like to
and determine when you expect to finish be involved in success.
it. Check it off when you do. Unless you
can commit to a start and target an end, it’s 10. Revisit your plan
unlikely it will happen. As you accomplish tasks and move toward
success, you’ll find a need to continually
3. Identify obstacles raise the bar.
You will meet obstacles, and they make you
stumble. If you identify them up front, you
can build them out and minimize surprises.
4. Assign accountability
Identify the people you will contact and work
Sean Wolfington is the owner of
with. If you are planning a big initiative, BZResults.com. He can be contacted
you will likely need to delegate and assign at 866.802.5753, or by e-mail at
responsibility. swolfington@autosuccessonline.com.
12 www.autosuccessonline.com

13. sts fos ls ms sf fis
MarkTewart
marketing solution
Super Bowl Ads:
Super Marketing or
Super Waste of Money
My wife is from I remember one funny and clever ad that
Pittsburgh, so you showed a woman on an airplane getting
know what I was up to go to the bathroom in the dark and
watching Super Bowl trying to climb over a male passenger who
Sunday. Being a life- was sleeping. Next the lights came on and
long Bengals fan, the male passenger awoke to the woman
Are Your Service
it was painful for me to watch the game. straddling him and in an embarrassing
Although the game wasn’t played well position. However, I can’t tell you who the
by either team, it was fun to watch the
advertisements. I watched the ads not from a
company was, what its product or service
was or how the ad related its benefits. In Department
football fan or TV viewer’s perspective, but
from a marketing perspective. My goal was
my opinion, the company would have been
better served to spend the money on a huge Revenues Flat
to figure out if each ad was a super ad or a
super waste of money.
party. At least it would have improved
company morale. Unfortunately, the ad or Positioned for
The cost per ad in a Super Bowl time slot is
accomplished nothing.
Growth?
reported to be somewhere between $800,000 On the other hand, FedEx had a creative and With DealerLOGIX ServiceOPS
and $2.5 million. How could one commercial humorous ad that featured a prehistoric man service departments are:
be worth that much money? Can it possibly attaching a large bone that was to be delivered
pay for itself? using a large prehistoric bird. The bird was Growing hours per RO and parts
attacked by another animal and the delivery revenue using vehicle specific
I judged each ad by several criteria to was not successful. When the prehistoric Good, Better, Best Menus
determine if it was worth the money. I also man went back to the cave and told another Protecting assets with full
judged the ads from an automobile dealer’s man what had happened, the man replied, disclosure
perspective to see if anything could be “You should have used FedEx.” The ad was
learned and be used on a smaller scale. funny, reinforced the brand, the slogan and Performing consistent walk-
the overriding benefit of their service. The ad arounds
First, I judged whether the ad caught my is memorable and creates emotional anchors Increasing CSI
attention. This can be accomplished through of fear and confidence. The ad created fear
Improving “Fix it right the first time”
humor and other emotional connections. of using another service while also creating
by providing techs with consisitent
Some of the commercials grabbed you confidence in the FedEx brand. Brilliant.
immediately and compelled you to watch
and clear issue information
while others almost forced you to lose interest Another good example was Budweiser.
from the beginning. Remember, market share Budweiser ran multiple commercials that
of mind precedes market share. were effective. The size of the Super Bowl
creates a huge reach. However, by running
“Not only are
Next, I judged if the commercials kept my multiple effective ads, Budweiser created we producing
attention and created interest in the product frequency as well. Budweiser accomplished in more parts and
or service. Some of the commercials one Super Bowl game what many companies service revenue
per RO, but
grabbed your attention and then got lost in could only dream of accomplishing in the our CSI has
their journey to reach their final destination. lifetime of a company. increased too!”
A simple question of “What are we trying
Pat Cox, Hajek
to accomplish?” would have eliminated As a dealer principal, most likely you Chevrolet
this problem. can’t afford an expensive multi-year image
campaign. You must bring buyers to your Call Now or Go Online
Another important aspect was if the ad
created a desire to either find out more
showroom floor now. You must use direct-
response marketing that gets immediate
to Schedule Your Free
about the product or service or to buy it. The results. You can’t afford the mistakes made Demonstration Today!
biggest lesson to be learned here is that some by many of the companies advertising in the
advertising companies sell a bill of goods Super Bowl. You want, need and deserve
to their clients. The ad company gets the super results.
client all wrapped up in the creative factors,
866.872.8150 ext. 72
such as how funny it is or how clever the
Mark Tewart is the president of Tewart
production is. However, the real reason for Enterprises. He can be contacted at
the advertisement is to sell something now
or in the future.
866.429.6844, or by e-mail at
mtewart@autosuccessonline.com. www.dealerlogix.com
april 2006
13

14. sts fos ls ms sf fis
JimAdams
leadership solution
Internal Re-con vs. Sublet:
The Great Debate
Some common and the $395.00 sublet rate: $215. Now what reflection of the service manager as it is the
arguments: used car manager wants to stand up and used car manager. Service managers must
• “How can you expect say $215 of service work by a Kia factory- hold their techs and advisors accountable
me to spend all that trained technician will keep him or her from to not recommend even one item that is not
money in the shop selling a car for a profit?
and still make a profit
when I sell it?”
Internal:
• “We continue to miss business by
Parts: $300: Gross profit retention 41 percent = $123 gross
wholesaling a lot of cars we should keep
Labor: $210: Gross profit retention 78 percent = $163.80 gross
because we can’t afford to recondition
Detail: $100: Gross profit retention 100 percent = $100 gross
them.”
Total: $610 $386.80 gross
• “Why can’t I just sublet them to a shop with
a lower labor rate to keep my cost down?” Sublet:
Parts: $205: Gross profit retention 0 percent
• “I am tired of spending all this money in Labor: $135: Gross profit retention 0 percent
get-ready and the car is not lot-ready when it Detail: $55: Gross profit retention 0 percent
comes out of the shop.”
Since the very first used car was traded in, this
debate has raged between used car managers A clear understanding of liability necessary for the proper reconditioning on
and service managers. It is important to I know it’s hard to believe but there the used car. Anyone caught stealing from
remember that a dealership may be four are people out there that will sue a car the dealership by performing work that is not
departments, (new, used, parts and service) dealership. Remember the golden rule: your necessary for the sake of generating hours
but it is one business — a business that holds car, your liability! If Andy the detail boy has should be dealt with.
each department 100 percent accountable for a wreck picking up or delivering your car,
the total success of the dealership. The used you’re liable. If Joe’s Service leaves the Building value in your dealership
car manager and the service manager must lug nuts loose and a wheel comes off at 60 Ask yourself, would you ask your customer
have a clear understanding of total dealership mph, you’re liable. By drastically limiting to service his or her vehicle at your shop
profitability and must work together to the amount of sublet you do, you drastically when you do not even service and repair
achieve this common goal. decrease your exposure to lawsuits. Joe and your own inventory there? It is time to get
Andy might be good guys but have you seen on the same team. Be proud of your service
Let’s take a look at a scenario: A 2003 Kia a MVR on them or all their employees? If department and the work it performs. When
Optima with 40,000 miles is traded in on you perform the work in your shop and an that customer says, “I can get this same car
Saturday. After it is checked into the shop, RO is generated, you will know exactly down the street for $1,000 less,” you can
the service advisor hands the used car who worked on the car and what work was reply, “That sounds about right, but you
manager an estimate of repairs. The repairs performed. see every vehicle in our inventory has been
involved include $300 in parts sales, three serviced and checked over by Kia factory-
hours of labor at $70 an hour and a $100 A clear understanding of accountability trained technicians, and any vehicle that does
detail and get-ready. Total ticket: $610. Service managers must also have a clear not exceed the high standards that we place
Wow, that’s a lot! understanding that the used car department on our cars we sell up and down the street to
must be profitable. Pre-owned inventory is those dealers you are talking about.”
The used car manager picks up the phone not a blank checkbook. Service departments
and calls Joe’s Service Center and Satellite should have a uniform checklist of recon
repair. Joe can do the repair for $205 in items that should begin with drivability.
parts, three hours of labor at $45 and Andy Nothing makes a used car manager’s head
Jr’s Detail shop can get you a wash and vac spin faster than a $900 shop bill and a used
for $55. Total ticket: $395. Now, that’s more car with rotor hop and a hard pull to the left
like it! at highway speeds.
Jim Adams is the general manager at
Now, let’s look at the real numbers. Our shop The service manager must remember that he Roper Kia in Joplin, MO. He can be
has not added $610 to the cost of the car, only or she is equally responsible for the pre-owned contacted at 800.905.0627, or by e-mail at
the difference between the $610 internal rate inventory. A unit in inventory is as much a jadams@autosuccessonline.com.
14 www.autosuccessonline.com

18. sts fos ls ms sf fis
JeffMorrill
leadership solution
Some of What I’ve
Learned About Hiring
Remember that hiring Don’t be afraid of the right person with no managers and perhaps some line staff (I do
is the most important experience. not participate in this one). Finally, the third
thing you do as a Most dealership jobs aren’t so complex that is a shadow day during which the candidate
manager. the right person can’t learn the fundamentals spends the better part of the day observing the
Managers accomplish and contribute quickly. For certain positions, rhythm and challenges of the day. Multiple
their goals through their people. A great such as sales, the lack of experience can be interviews give more opportunities for an
manager with mediocre people isn’t really a positive because you don’t have to break unprofessional person to reveal his or her
great manager. Hire and retain good people, the bad habits they picked up at a lesser bad work habits or character. Also, they give
and your life is worth living. Hire the wrong dealership. the candidate a more accurate impression of
people, and your life will be filled with pain. what the job is and isn’t.
So make the time to do it well. It’s never Remember you can’t fix stupid.
something to be rushed. Whatever little Beware of stupid people and don’t hire them Involve at least one other person in the
time you save now by taking shortcuts will for anything. You can improve someone’s interviewing process beside yourself.
be lost tenfold or more in the subsequent skills but you can’t give them a brain. The participation of multiple team members
underperformance and rehiring required if increases team morale that comes from
you hire the wrong person. Make sure prospects understand just how having input on key decisions and increases
special your company is by explaining what the odds of someone catching something you
Remember how expensive a hiring makes you so. missed.
mistake is. Let’s face it, the best people have the best
The cost of hiring one sales person, (including options, and we need to sell them on why Don’t focus too much on interview skills or
advertising costs, training expenses and they’ll do better here. a good résumé, look for the skills that the
screwed-up deals during the learning curve) job requires.
is easily $10,000 or more. The cost is even Streamline the interview process. It’s tempting to hire the person who dresses
more enormous if you add in the lost service Rather than spending a ton of time explaining the best, is the most well spoken, went to a
and parts business, and lost repeat and the job to everyone who calls, e-mail them fancy school or happens to “hit it off” with
referral business from those lost sales over a list of frequently asked questions and ask you, but don’t put too much stock in these
the coming years. With that in mind, spend them to contact you if they are interested in things unless they are required for the job.
the time to do it right. Spending your time on learning more. The questions should have Ultimately, you’re hiring someone to perform
other more urgent and pressing tasks instead rich detail about schedule, pay plan, your a job, not to be interviewed. So focus on
of hiring is like stepping over dollars to pick mission statement, etc. qualities that are required to do the job.
up dimes or even pennies.
At least for sales people, don’t work too Make sure your candidates are interviewing
It’s a lot cheaper to keep the good person hard to track people down after you’ve you and not just the other way around.
you’ve got than to go and get another one. made an initial contact. This will cut down on the number of people
So do what it takes to keep your best Ask them to call you rather than telling them who quit the job after only a short time because
performers. that you’ll contact them. This ensures, if they didn’t understand the responsibilities,
nothing else, a minimum level of interest pace, culture, challenges, etc. It’s my goal to
Remember that the person you’re hiring and professionalism. I want to see that a make sure a candidate understands exactly
may be a future manager. sales person has the wherewithal to pick what the job is, warts and all. It doesn’t do
Among the people you hire for line staff up the phone and follow up with people. me any good to sell someone on the job and
positions, some of your hires need to have If they can’t do it with me, they won’t do then have them discover they don’t like it
management potential. Be on the lookout for it with customers. During the interview and then quit.
it. Promoting from within is a great philosophy process, ask the candidate to call you to set
only if you’ve laid the groundwork by hiring up every interview. If they’re not motivated
people worthy of eventual promotion. to contact me to set up each interview, then
they don’t fit.
There’s never a good time to hire the wrong
person, and there’s never a bad time to Require three interviews that include
hire a good person. multiple team members. Jeff Morrill is co-owner of Planet Subaru in
No matter how desperate you feel to have a This isn’t as tedious as it sounds. I do the first Hanover, Mass., and Planet Chrysler Jeep
in Franklin, Mass. He can be contacted at
person in place, beware of hiring a sub-par interview. If I like the candidate, I invite the 866.872.8699, or by e-mail at
person because you’re desperate. person back to interview with the department jmorrill@autosuccessonline.com.
18 www.autosuccessonline.com

20. sts fos ls ms sf fis
KirkManzo
sales and training solution
Use an Evidence Manual
Customers often work. Perhaps you enjoy fishing, hunting, should buy from you. This section will
believe more of what coaching a little league team or traveling contain copies of favorable CSI and SSI
they see than what to a variety of destinations. Showing these surveys showing positive comments from
they hear. For this photos allows your customer to realize that previously sold customers. Any thank you
reason, today’s sales you are just like him or her, a human being, notes or letters should also be included in
professional must not some big, bad car sales man. Include this section.
create and maintain an evidence manual to photos of you and your family, your dog and
show his or her customers proof of why they the people that are important in your life. A good strategy to help increase the number
should do business with your dealership. This section should take up a few pages in of thank you notes you have available to
your book, not one photo. place in your evidence manual is to make
Most sales people are attempting to convince it easy for customers to provide their
a prospect they just met for the first time to Chapter two will also contain photographs, comments in writing. Go to the local office
buy a product that costs thousands of dollars however, these pictures will show you supply or stationery store and pick up a small
after only knowing the person for about an standing next to people with large smiles 5x7-inch note pad with a generic beach or
hour. This can be a real challenge. on their faces standing in front of the new mountain scene in the background. Keep this
vehicle you just sold them. These pictures in your desk so that when you are finishing
In order to help persuade the customer to do provide you with a very powerful tool of the sale and your customer comments how
business with your dealership now, use an influence to persuade your customer to buy pleased he or she is about everything, you
evidence manual to reinforce your strengths. from you now. There is an unconscious can then make a small request of him or
message that your customer will be receiving her. “I really appreciate you saying that Mr./
The book itself should be constructed from as he or she views page after page of photos Mrs. Customer. Would you be so kind as to
a large photo album. The best type to use of people standing next to you smiling next take a moment and jot down what you just
has a three-ring binder with full-size pages. to a new car: “Buying a car from you will said so that I could add that to my book?”
The pages should have a hard backing with make me smile, too.” Then simply hand him or her a pen and your
a plastic sheet you can pull up and place stationery to get your written testimonial for
documents and photographs of various sizes In smaller communities this section can be your evidence manual.
and shapes underneath. Your local discount even more powerful. As your potential new
department store should have a photo album customer is flipping through the pages of The last chapter will focus on your product.
for about $10 to $15, a small amount to pay your evidence manual, whom might he or This section will contain articles written
for your success. she see? That’s right, people they already about the various models of cars, trucks
know and trust. “Look honey, Bill and Terry and SUVs you sell. The good news is that
The book should be formatted into four bought a car from this young fellow.” What going to Yahoo or Google should provide
different and distinct chapters, each just happened to your credibility? Exactly. It you with plenty of content for this section.
designed to help influence your customer to just shot through the roof. Due to current In addition, you should subscribe to “Motor
action now. privacy laws you may want to have a standard Trend,” “Road and Track,” “Automobile,”
advertising disclaimer form signed in F&I and other magazines to both stay current on
Chapter one is all about you. This section is a during delivery giving you permission to use competitive new models as well as collect
collection of photographs of you outside your the photos. articles on your product. Make it a point to
work environment. This collection of photos pick up the Friday edition of USA Today
should show you involved in the activities Chapter three is focused on written evidence because it reviews new vehicles each week.
and interests you participate in outside of to support your case for why the customer
The use of an evidence manual shows your
customer you are a professional. It provides
him or her with proof that you are someone
he or she should feel good about spending
his or her hard earned money with today.
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
kmanzo@autosuccessonline.com.
20 www.autosuccessonline.com

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22. sts fos ls ms sf fis
ChipPerry
marketing solution
Taking Photos That
Really Work Online
The key to building are posting are consistent with the comments a neutral background and good lighting. Do
an effective online in the ad. If you highlight that a vehicle has you have woods behind your dealership or
advertisement is low mileage, you can take a picture of the a solid wall on one of your buildings? A
real-time, detailed odometer; if you advertise the car has large showroom with high ceilings? These are all
information. With trunk space, open the trunk and take a picture good examples of locations that will help the
online advertising, the looking in. These types of photographs focus remain solely on the vehicle for sale.
more information you provide, the better the reassure consumers they are seeing pictures
response. And providing visuals is an essential of the actual vehicle of interest, making As mentioned, lighting is important in
component of merchandising vehicles and it worth their while to visit the dealership photography — too much light produces
telling the car’s story, which is why the first for a test drive. With recent improvements glares and dark shadows, whereas too little
training module covers photographs. Great and drastic price reductions in digital light produces darkness and makes it difficult
photos are key to advertising online, in order cameras, it is a solid, low-cost investment. to see vehicle details. The best online
to reach the information-seeking consumer photographs have diffuse lighting, which
and illustrate what you have in your “virtual Even better than low-cost, location is a no- produces no glare, harsh shadows or color
showroom.” Dealerships need to understand cost investment. Choosing the right location distortions. Therefore, take photographs in
what makes a photograph most effective. to showcase vehicles can make all the a well-lit, indoor location or on an overcast
difference in vehicle sales. You should avoid day. The right amount of light will allow
The first step in taking good photographs is taking pictures in the inventory line. This can consumers to clearly see the vehicle and
having a good camera. Use a high-quality make your dealership appear cluttered and every little detail.
digital camera with a large lens opening to can distract consumers from the vehicle on
take sharp, close and professional-looking which you are trying to focus. Instead, find Photos help sell cars. To show off all the
images of the car. Be sure the photos you a showcase space with minimal distractions, features of the car, it’s important to include
multiple photos. It’s statistically proven
that ads with photos sell better than those
without, and ads with multiple photos sell
three to four times better than those with
a single photo. Post photos showing off
every important aspect of the car from every
angle. Show off any special features, such as
specialty or new tires, good condition leather
interior, folding seats or a spoiler. Include a
picture that makes the consumer feel like
they’re “in the driver’s seat,” but don’t be
repetitive and post similar photos.
Whether your dealership is large or small,
franchise or independent, the way vehicles
are merchandised online is what ultimately
makes a difference in car sales. When in-
market shoppers are scanning for vehicles
that meet their needs, the main driver of
consumer response to online advertisements,
Nine Correctable Mistakes: Triple Your Return in Direct Marketing. aside from price, is the way dealerships
present their inventory. Take good
Having watched responses to over 100 million mail pieces, and after studying over 500
databases, we would like to talk with you about disciplined marketing. We can point out photographs, invest in a digital camera,
nine critical mistakes in marketing today... And show you how to correct them right now! choose good locations, use diffuse lighting
We are an agency's agency. With approximately 280 employees and one of the largest and provide multiple photos. Successful
variable printing operations in North America, we create marketing strategies and online advertisements provide consumers
execute them through print and mail for several major manufacturers, including Toyota’s
Lexus division. We see a lot of different strategies with mail. Some work very well. Many
with mental ownership of vehicles.
fail. We will let your group in on what really works.
Come see special guest Chip Perry is the president and CEO of
speaker Bill Sattree at the invitation AutoTrader.com. He can be contacted at
hors d'oeuvres party, Thursday at
Call today for more 5:30 at the AutoSuccess Best
866.853.0234, or by e-mail at
cperry@autosuccessonline.com.
information 866.239.4093 Practices Summit IV
22 www.autosuccessonline.com