AutoSuccess Jul08

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July 2008

AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or [email protected]. Subscription rate is $69 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, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220.

Colossians 3:15Let the peace of Christ rule in your hearts, since as members of one body you were called to peace.

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HOW TO MULTIPLY TIME

CHALLENGING THE CORE INVENTORY CONCEPT

WHAT TO DO WITH YOUR BEST SALESPERSON

GarySimmons

TomHopkins

PaulD.Cummings

JohnBrentlinger

MichaelYork

THE FORMULA FOR WINNING - FOURFAIL SAFE STEPS

MarcSmith

DalePollak

SERVICE: PROFIT CENTER ORADVERTISING INVESTMENT?

ADOPT AN OPEN SERVICE DRIVEWAY AND GENERATE $200,000 MORE THIS YEAR

D.J.HarringtonPLEASE STEP OUT OF THE LINE

SEE SPOT RUN - SEEN SPOT LATELY?KEEP READING

ChuckPatton& TriciaPatton

ONE TOOL = THREE SIMPLE STEPSTO GROW YOUR BUSINESS

SeanV.BradleyINTERNET SALES 20 GROUP VII

DaymondDecker

LauraNoonan

PaulSniderTOUGH TIMES NEVER LAST - TOUGH PEOPLE DO

ONLINE MEASUREMENTWhat Your Lead Management System Won’t Tell You

JoeCala

WHAT’S IN A TITLE

DennisGalbraith

SteveBrazillFIGHTING MURPHY’S LAW

PREPARATION TIME IS NEVER LOST TIME

FranTaylorTRAINING, NEGATIVITY AND ADVICE

MikeHoffeyEASIER ACCESS TO SERVICE CONTRACT INFORMATION

ENEWSLETTERSBuilding a Stronger Relationship With Your Customers

GET TANKEDThe #1 Direct Mail Campaign in the Automotive Industry

JimmyPeters

BrianHallTHIRD PARTY LEADS AND BDCNow More Than Ever

workday world. I know it can be hard to force yourself to do this, but believe me, the benefi ts are incredible.

When you are involved with opportunity time, you need to be tough about it. It’s amazing how much of our working life can be eaten up by trivial interruptions unless you make a conscious effort not to let that happen. Successful people are tough about the types of interruptions they allow during productive business time. They’re always on the lookout for busy work and fi nding ways to eliminate it.

Busy work is usually pointless stuff that you don’t mind doing because it’s easy, and doing it makes a marvelous excuse for not tackling the hard things you know you should do. The key is to fi gure out the best time of day each day for selling and to focus your efforts on sales activities during that time. Don’t do fi ling or clean your desk during sales time. Yes, it needs to be done, but not during selling time.

If you’re going to be a winner, you will always have time for the tough end of your job because that’s what produces results.

8

www.autosuccessonline.com

TomHopkins

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HOW TOMULTIPLY TIMETime is as precious

a commodity as money. I’ve written many articles specifi cally about how to make sales (translated “making money”). Now, let’s explore some ways you can get more sales productivity out of the time you have to invest in your automotive sales career.

Everyone knows you can make twice the income by working twice the number of hours, putting forth twice the amount of effort. The secret to true success is in making the time you currently invest in your business twice as productive.

To begin with, you must understand that there are two entirely different kinds of time. The fi rst is opportunity time, during which you achieve your goals such as internalizing information on new vehicles, getting your hands, eyes and ears on those new vehicles and providing follow up service to existing clients. The second is replenishment time, during which you rebuild your strength through exercise, recreation, relaxation and sleep.

If you can’t get the hang of switching from opportunity time to replenishment time, you’ll soon face a period of burnout where you’re neither successful nor in sound physical condition. You’ll run out of fuel. Then your fl ame will go out, your power will shut off and you’ll drop like a stone.

People who appear to be highly productive often suffer fl ameout. Many have lost several years as a result. Some have quenched their fl ames so thoroughly that they never managed to get their engines going again. They gave up on their dreams of having a successful career.

The dangerous part is that fl ameout sneaks up on you. Don’t try to fl y high when your tanks are low. Touch down and refuel your spirits — spend a few days away in a completely different atmosphere from your

Successful people in the automobile industry always jump on the most important thing fi rst. What is the most important thing that you should do right now? Learning to answer that question quickly then acting on it will increase your productivity ten-fold. If you have a weekly sales goal, start working on it as early in the day as your potential clients are available. Don’t wait until you take care of other things before you start selling. The weight of that goal will crush you by day’s end. Start doing this every morning, keep on doing it, and you’ll soon discover that you’re not worrying anymore. You’re enjoying the work, you’re feeling good about yourself, and you know you’re winning.

If a challenge arises that you don’t know what to do about, do your best to come up with an answer, but don’t dwell on it too long. If you’re not satisfi ed that what you’ve come up with is the best solution, write down how you’d like to resolve it, even if what you write seems totally absurd. Then, set it aside and commit to returning to it later that day. Let your mind work on other things for awhile. Then, when you come back to the challenge, you’ll likely have a fresh perspective on it and fi nd a better solution. If it’s still not the ideal solution, do your best in handling it today. The longer you let challenges lie unresolved, the more likely they are to grow into something that will be very diffi cult to resolve. Just tell yourself, “I’m going to handle this to the best of my ability today and will learn from this experience.”

Stay tough about your opportunity time. Don’t fritter it away doing busy work or engaging in unnecessary activities. When it’s time to sell, sell! But when it’s time to kick back and relax, do that with gusto as well.

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

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PLEASE STEP OUTOF THE LINEProcessionary caterpillars travel in

long and wavy lines, one creature behind the other. A French entomologist once led a group of these caterpillars onto a rim of a large fl ower pot so that the leader of the

procession found himself nose to tail with the last caterpillar in the procession, forming a circle without an end or a beginning.

Through sheer force of habit and, of course, instinct, the ring of caterpillars circled the

fl ower pot for seven days and seven nights and until they died from starvation and exhaustion. There was an ample supply of food close at hand and very visible, but it was outside the range of the circle, so the caterpillars continued along the beaten path.

A lot of us often behave in a similar way. Habit patterns and our ways of thinking become deeply established and it seems easier and more comfortable to follow them rather than accept change — even when food to live by is right there.

I know if someone shouts “FIRE,” it is automatic to blindly follow the crowd, and many thousands have needlessly died because of it. How many stop to ask, “Is this really the best way out of here?” So many people “miss the boat” because it’s easier and less demanding to follow without questioning the qualifi cations of the people just ahead of us and just maybe do some independent checking and thinking.

A hard thing for most of us is to fully understand is that people in such a large number can be so wrong (like the caterpillars going around and around the edge of a fl ower pot with food and life just a short distance away). It’s sad, but most people are living that way. If we do a little checking, you will discover that throughout all recorded history, the majority of mankind has an unbroken record of being wrong about most things — especially the important things.

It’s diffi cult for people to come to the understanding that only a small group of people ever really understand about life, about living abundantly and successfully. Some people wait passively for success to come to them, like our caterpillars going around and around, following nose to tail thinking that other people must know how to live successfully.

Please remember, it’s a good idea to step out of the line every once in a while and look up ahead to see if the line is going where you want it to go. If it’s not, step out of the line.

D. J. Harrington is an author, journalist, seminar leader, international trainer, and marketing consultant. He can be contacted at 866.855.5781, or by e-mail at [email protected].

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There are three general criteria

for “best” salesperson: They do their own work, they have constant high margins and they have high volume. Those are the standards. We’re not talking about the favorite child who skates others, who is fed by the manager and who sacrifi ces margin for volume (volume is vanity; profi t is sanity). Your best salesperson meets the standards and encourages other salespeople by his or her work ethic and example.

What you do with your best salesperson determines the vitality of your dealership. All of the other salespeople are watching your best salesperson. If you treat your best salesperson poorly, the others will not aspire to greatness, and they will remain mediocre for as long as they work for you. If you want mediocre salespeople, the formula is simple: Hire anyone, micro-manage everyone and train no one.

What To Do with Your Best Salesperson 1. Do not make them team players. All salespeople are not equal. Conventional nonsense about everyone doing everything the same way leads to mediocre madness, ie: “We have a system and you will learn it and follow it or else.” Oh goody, let’s all be mediocre together. Think about a baseball team. Every player has different strengths and abilities. They are not the same, they are not equal, they are paid differently and some are better than others. Imagine a team where everyone hit like the pitcher, squatted like the catcher and scratched like the manager. That is your mediocre sales force when you try to make them all do all of the same things in the same way. That has not worked, is not working and will not work. Be brave enough, be smart enough, be secure enough and control yourself enough to let your best salesperson think differently, work differently, sell differently and while doing differently, produce great profi t for themselves and the dealership. Your greatest test as a manager is this: Do you have the ability to lead great salespeople?

2. Leave them alone. Don’t micro-manage them. Don’t make them follow all the silly rules that the six-car-a-month people follow. Silly rules make mediocre teams who can follow silly rules but can’t sell anything. If you want the name, address and phone number of every prospect,

get it yourself. If you want perfect computer records every day, hire a bunch of computer nerds who love computers but couldn’t sell water in the Sahara. Leave your best salesperson alone. They don’t need you to silly-small-talk their customers, they don’t need you to call their customers, check their fi gures, desk their deals and close their sales. That’s why they are the best. Leave them alone. They will sell more and earn more, and so will you.

3. Increase their commissions. The salesperson who does the most should be paid the best. This one thing will raise the standard for all the other salespeople. Anyone who complains about how much the best salesperson makes should be fi red immediately. If other salespeople complain, fi re them. If the person who writes the checks complains, fi re them. If a manager complains that best salesperson makes too much money, fi re them. The salesperson who does the work and makes the money should be treated like a rock star. If you can’t, don’t or won’t treat your best salesperson as your best salesperson, you won’t have to worry about how to treat your best salesperson, because you won’t have one.

4. Do not make them managers. There is no commission on management. All commissions come from selling a product at a profi t. Don’t take your best earners, your best workers, your best examples to the rest of the salespeople and make them work longer hours for less pay, less satisfaction and less incentive. Great salespeople are great because they love to produce, to sell and to meet the goals they set for themselves. Don’t ruin your sales force by showing them that if they be the best they can be, they will be rewarded by being made a manager. Let them sell, let them grow, let them earn.

Let your best salesperson be as great as they want to be. Don’t make them team players, don’t micro-manage them, pay them more and just let them sell. Treat them like rock stars, and the entire dealership will benefi t.

John Brentlinger is a sales and management trainer, executive coach and author. He can be contacted at 866.859.6504, or by e-mail at [email protected].

JohnBrentlinger

WHAT TO DO WITH YOUR BEST SALESPERSON

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the #1 sales-improvement magazine for the automotive professional

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The #1 Direct Mail Campaignin the Automotive Industry JimmyPeters

The current economic climate, with banks tightening stipulations for loans and gas prices soaring, has made effective marketing more important than ever. Every marketing dollar must have maximum impact. Banks have become very tight lending to those with the 480 to 559 credit scores. These deals are not getting bought without $2,000 to $3,000 down. The hedge fees of 15 to 20 percent make these deals very diffi cult — if not impossible — to structure. Dealerships are looking for ways to increase sales from their marketing dollars and drive in more high-score traffi c that can be more easily fi nanced. One great way to do this is to increase response rates and target your desired customer type. New ideas in direct mail, like gas mailer campaigns, are helping innovative dealers achieve up to a 5 to 10 percent response.

Why do gas mailers work? The gas mailer mail campaign hits a nerve. Everyone in the United States is feeling the pinch from high gas prices in one way or another. Everyone opens a gas mailer simply because it offers some relief at a time when gas has hit $4 or more per gallon. Who wouldn’t open it?

The motivation is the message. Fifty dollars in free gas motivates people. Imagine if you put a bunch of big billboards up that said, “Come Test Drive Any of Our New or Pre-Owned Vehicles and We Will Give You $50 Worth of Free Gas!” How many people would respond to this message and be on your lot to get that free $50 of fuel? Your lot would be a mad house. The message would motivate tons of people. The problem with the billboard is that you cannot target the individuals you want to visit your dealership. You simply cannot target the exact demographic you want to have visit your dealership with any form of mass media advertising such as a billboard, newspaper, television or radio. It is important to remember that you can generate tons of fl oor traffi c to your dealership in any market with the right message and call to action.

Now, think if you take this highly effective call to action that solicits an emotional response and desire from your target customer and condense it into a form of advertising such as direct mail. With direct mail, you can specifi cally target your desired customer, a customer the banks will still buy. Imagine the sales numbers from a showroom full of emotionally motivated customers who can buy a car. What are

the possibilities? Well, the chances are that, even with the market in its current condition and gas prices sky high, you could very likely have a record month at your dealership — just like many other dealerships have been able to do by using gas mailer program campaigns.

With this mailer, you should target people with a 580 to 679 credit score who have 70 to 99 percent of their auto loan paid off. These are the people whom the banks are willing to fi nance. They have had their vehicles for awhile, and they’re ready to go home in one of yours. These motivated and able buyers are the ones whom you want to visit your store. You won’t be struggling to hang these deals on Monday morning or calling people to unwind deals you can’t get done. You will just have happy customers driving in your cars.

With any campaign, it is important to stand out and use emotion to motivate your

customers. Using a gas mailer will get your customers emotionally motivated and create a strong call to action. A great way to stand out is with a follow-up postcard to remind them that they need to visit to get their $50 in gas. Use a message such as, “This is your last notice to stop by and take a test drive to receive your $50 gas certifi cate.” This will invoke the fear of loss and push many potential customers over the edge and drive them to your dealership.

Compound the effect of your gas mailer and last-chance postcard with a voice broadcast. Use a voice mail broadcast while your sale is going on to remind them not to miss out. Use a simple pre-recorded phone message asking them to come to your dealership and take a test drive and pick up their $50 gas certifi cate and tells them of the specials you have going on.There is no way for you to lose with a properly planned and implemented gas mailer campaign.

The bottom line is you have to make sure that you get ups on your lot who can buy, and that is why you need to make sure your lists are less than 24 hours old and are targeted to the criteria you can sell. When the market is hard, we must be more aggressive to make sure we get our share; ask yourself if you are doing what you need to do, or are you just standing by?

Jimmy Peters is the president of Big Time Promotions. He can be contacted at866.850.6926, or by e-mail [email protected].

GET TANKEDANKEDWith gas prices over $4 a gallon regardless of what I was doing my marketing efforts were losing their catch and my ROI was on the downturn so I turned to a longtime marketing partner a few weeks ago to see if they could help turn things around and boy have they! Jimmy suggested I try out their new Get Tanked mailer that offers my customers a $50 gas voucher just for test driving one of our vehicles (with no extra expense to us) and so far I have been seeing close to a 4% response which gives my sales reps an opportunity to do their job and sell product. My staff is pumped and our marketing ROI has skyrocketed with us seeing deals make as much as 5 or 6 grand a copy!

Clint RainerGeneral Sales ManagerBill Heard Chevrolet

Union City, GA

“WOW!!! Get Tanked mailer has delivered great success and signifi cantly better-than-ever GROSSES to our dealership. My market is a tough one, but GET TANKED MAILER brings in quality traffi c that gets SOLD. I recommend it for your next direct sales event.”

Michael MancanoGeneral Manager

Honda CityChicago, IL

The get tanked mailer I did with Jimmy gave me a tremendous response as well as great gross per copy. I ran $4218 a copy and had a 2% show ratio. Thank You”

Barney LopezGeneral Sales ManagerCloverleaf Chrysler Dodge Jeep

Decatur, AL

“With the economy the way it is to be honest I wasn’t sure if anything was going to work the same as it did in days past but I was wrong as Jimmy Peters has proven to me once again with the Get Tanked piece I did that I can always depend on my advertising company to give a boost to my monthly sales.”

Robert S. CookGeneral Sales ManagerBrewbaker Motors

Montgomery, AL

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DalePollak

CHALLENGING THE COREINVENTORY CONCEPTOK, I’m going to go out on a limb

to challenge a conventional dealership notion. I’m really troubled by the concept of “core inventory.” I’m not saying that each store doesn’t have a certain natural traffi c profi le based on its brand, location and community, but I am suggesting that the notion of a “core inventory,” while appealing and comforting, is fool’s gold.

The idea of “core inventory” suggests that there is a fi xed profi le of used vehicle inventory that produces optimal results. In other words, if you stock certain types of vehicles, you’ll be well on your way to success. This notion makes the assumption that the automobile market place is steady and predictable. Without the assumption of steadiness and predictability, one could not legitimately suggest that dealers should stick to a defi ned core of inventory mix.

However, the truth is that the used car market place, by defi nition, is anything but steady and, in fact, is extremely unpredictable. There are hundreds of factors that are at play in our environment that infl uence consumer’s purchase preferences and they are anything but steady and predictable. Fluctuating gas prices, interest rates and weather patterns are just a few causes that constantly befuddle those that attempt to stock inventory today, based on what has worked in the past.

For example, every day, we are all watching gas prices skyrocket. There couldn’t be any environment that more dramatically highlights the fact that the theory of dealers stocking based on their “core inventory” is just plain wrong. If any dealer today stocked their lot based on their past core inventory, they’d be purchasing gas guzzlers and, quite possibly, avoiding the purchase of today’s hot selling, gas-sipping vehicles. It seems insane to keep doing the same things and expect different results.

Today, I spoke to a highly successful used car director of a large multi-franchise organization. His comments made me realize that the absurdity of “core inventory” goes well beyond the issue of gas prices. He said that, as an experiment, they stopped stocking used Infi niti’s at their Infi niti dealership. They experimented with high volume, off-brand vehicles, such as Impalas and Malibus. I asked him if he was sure he knew what he was doing, and he told me that they were selling like “hotcakes.”

He said that we all get hung up on the notion that we should stock according to our past sales and/or in accordance

with our franchise brand. Yes, it may be true, he told me, that there is some natural traffi c for these vehicles, but that does not necessarily mean that they are the most demanded products in the market. Properly used, the Internet allows dealers to be successful with products that are hot, but not necessarily their brand or part of their past core. “Remember,” he said, “no used car manager ever got fi red for selling the right mix of used makes and models.”

So why is it hard for many dealerships to

do what my friend has done at his Infi niti store? I think that the answer lies in the fact that we are all more comfortable operating in a zone of comfort and familiarity. Think about how hard it would be for someone very knowledgeable and familiar with the Infi niti to say, “there might be something better out there, and I’m gonna give it a try.” It’s a lot easier for us to go with the inventory that we know, rather than venturing out and taking the risk associated with buying something different.

The good news for the industry is that there is now technology that can analyze any market and tell a manager, at the level of year, make, model and specifi c equipment, which are the hottest vehicles at the moment, based on volume and/or gross. This takes much of the risk and uncertainty out of the equation. So if you haven’t seen this, you need to. In my opinion, it’s the only way to stay in tune with the market.

As uncomfortable as it is, we need to let go of our security blanket or, in the words of Thomas Friedman, our “olive tree” and accept the fact that, in the words of Bob Dylan, “times, they are a’ changing.” We must embrace uncertainty and accept the fact that what worked last year, last quarter or last month may not work today. This means that we must keep our fi nger on the pulse of the market place and take our cues from it in “real time” rather than from history. Our present inventory must always refl ect the market at the moment. If gas prices are way up, we have to dump gas guzzlers in favor of compacts. If we’re experiencing unusual amounts of snowfall, we must quickly respond with more 4-wheel drives. If silver cars lose their appeal, we must quickly respond by changing our preference of color choices. We simply can no longer afford the convenient comforting thought that what worked in the past will work today or tomorrow. The only things that are constant and predictable are death, taxes and change. Let’s wake up, smell the coffee and realize that the notion of “core” is rotten.

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

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In today’s tight market, most

dealerships are losing money on both new and used vehicles. Staying out of the red is possible, though: Look to your service and parts departments. These departments should be your revenue-generating stars, but if they’re not, you’re not alone. The service department, primed to run at maximum effi ciency, often is stymied by overwhelmed service advisors who prematurely shut off the daily fl ow of customers, “closing” the department and costing you as much as $200,000 in revenue each year. The good news, however, is that you can reap those profi ts by cultivating an “open” service driveway, increasing effi ciency, profi tability and customer satisfaction, without costing undue time and money.

Open Your Service Drivewayfor the Entire DayYour fi rst step in generating more service revenue is to open your driveway for the

entire day, including Friday. Currently many service advisers stop scheduling same-day appointments at 10 or 11 a.m. because they get overwhelmed with numerous open repair orders. An overwhelmed adviser will schedule appointments for 24 to 48 hours after the customer calls, causing your no-show percentage to jump to more than 30 percent as customers turn to another shop. No only are you losing revenue, you’re alienating customers. The hardest part to swallow is that many service technicians will be fi nished with their work before the day is over, meaning customers were turned away only because the number of open repairs orders seemed too daunting. Tell your advisers to keep the driveway open for just four additional repair orders per day, and you can collect that missing $200,000 per year.

Accommodate Your Customers,Not Your DealershipIf you’re thinking, “If I tell a customer to bring in their vehicle but we cannot repair

it today, they will be just as disgruntled as if I made them wait for an appointment.” Not necessarily. Your customers need to know that their needs come fi rst. By taking immediate action and telling them to come in right away, you are proving that. The key is clear communication: tell them you want to determine the problem immediately, that you may not be able to repair the problem that same day, but once you know the nature of the problem you can give them an excellent estimate of the time and labor involved.

The principle of accommodating your customers fi rst also applies to your service department Web page. With so many consumers turning to the Internet fi rst, ensure that your

service Web page is also “open.” If a customer goes to your appointment page and is denied the appointment time slot they want, they’ll simply jump to the site of another shop. Make it clear that you are there to accommodate your customers by ensuring that your online appointment menu tells customers to call if they cannot get their requested time slot. Again, it is about proving to the customer that they come fi rst.

Train Your Service Advisors tobe a Part of the TeamThe changes above will obviously affect your service advisers, so put in the time upfront to get them on-board with your new strategy. Make sure they know they are an integral part of building a successful dealership. Outline for them the structure of your dealership, where the greatest amount of revenue is coming from, your dealership goals, and how they can make these goals a reality. Invested employees are your best weapon against a down market and attrition. Also consider that you may need to hire additional service advisers to reach maximum department effi ciency.

Your service and parts departments are your revenue-generating stars, as long as they are structured and run by an “open” policy. When your department is open, you’ll gain increased effi ciency and customer satisfaction. Most importantly, your revenue may just increase to more than $200,000.

Gary Simmons is the founder of Management Consulting Services, Inc. He can be contacted at866.491.3806, or by e-mail [email protected].

GarySimmons

ADOPT AN OPEN SERVICEDRIVEWAY AND GENERATE$200,000 MORE THIS YEAR

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“Your serviceand partsdepartmentsare yourrevenue-generatingstars, as longas they arestructured andrun by an‘open’policy.”

Sunday – Day OneRegistration1:00 pm – 8:30 pmExhibit Hall Booth Setup1:30 pm – 5:30 pmReception in Exhibit Hall6:00 pm – 9:00 pm

Monday – Day TwoBreakfast in Exhibit Hall7:00 am – 8:45 amGeneral Session9:00 am – 10:15 amBeverage Break10:15 am – 10:30 amLegal Jeopardy10:30 am – 12:00 noonLunch in Exhibit Hall12:00 noon – 1:30 pmEducational Sessions1:45 pm – 5:00 pmBeverage Break3:00 pm – 3:15 pmReception in Exhibit Hall5:00 pm – 6:30 pm

Tuesday – Day ThreeBreakfast in Exhibit Hall7:00 am – 8:45 amEducational Sessions9:00 am – 12:00 noonBeverage Break10:15 am – 10:30 amLunch in Exhibit Hall12:00 noon – 1:30 pm

Roundtable Discussions 1:45 pm – 3:00 pmConference Adjourns3:00 pm

Preliminary Agenda

Call Today for your CompleteRegistration Packet

888.490.0909

2008 Special Finance Convention August 17th – 19th, 2008

Moderators and Speakers

Emily Beck Kevin Day Greg Goebel Tom Herald Tom Hudson Kris Wright

www.2008sfconvention.com

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Is your service

department a profi t center or advertising investment? The answer is “both.” Chances are, the manufacturer you represent was down for the month of June. These market conditions are unprecedented for many of us, and we are trying to re-adjust our strategies in order to adapt and keep our numbers up. One trend remains, however: We all depend on our service department to level off the front-end sales loss during a down sales cycle. The good news is service can still be there for you. Challenge yourself to look at things in a new light and start assessing the importance of reinvesting in your service department just as you would your personal fi nancial profi le.

Most dealers set a goal for their service department to achieve the highest absorption rate possible. If you have the right perspective, your service department can achieve this and double as a prospect base to build strong sales. This is because the larger your customer base is in service, the stronger your prospect base is to sales. So, is your service department a profi t center or is it actually an advertising investment? Increased loyalty in your service department will eventually lead to a larger customer base to mine for sales. But, fi rst you must set it as a priority, and second you must mine it for potential. So, if you are thinking of cutting back on your service advertising, think again.

Here is a clear argument for making your service department an investment — go through the most current fi nancial numbers and trends at NADA.org and read between the lines:1. The following numbers were down

two years ago: total dealership sales, net profi t before taxes and new vehicle sales.

2. The largest increases in income came from the used car department and the service department.

3. The average dealership achieves around $31 million in sales. Just under $4 million of that comes from service department.

4. In 2006, the service and parts department profi ts accounted for 77

percent of total dealership operating profi ts, and that number is rising.

5. If you consider any of the forecasting about the economy and how that will effect your retail department, it makes sense to concentrate your advertising investment in the area that makes you the most money — the service department.

6. Your service department is defi nitely a profi t center.

Now, here are a few ideas HOW to expand your service department vision from just a profi t center to an advertising investment: 1. Take control of your service

advertising and make sure you are marketing YOUR dealership, not the manufacturer. Service marketing is typically a communication that occurs four or more times a year, and some programs you might be using spend more time talking about what the manufacturer offers and less about what your dealership offers.

2. Don’t cut the budget. Most dealerships invest less than 10 percent of their total advertising budget in the very department that produces 77 percent of the profi t. That might be too low. Typically the only soft sale, customer relations branding you will do is in service.

3. The key customers for prospecting are those who have serviced their vehicle within the past 12 months and have a three- to four-year-old vehicle. Don’t be surprised if that number stretches to fi ve or six years, given the down economy.

4. Look to make your less loyal clients more loyal and build your primary purchase base. Try marketing to service customers who have not been to your dealership in 12 to 36 months in a completely different way than loyal clients. Get aggressive about your offers and approach the marketing conversation differently.

5. Sell yourself. Keep a consistent message of quality and talk about what you have to offer, or, what is

known as “your brand.” Remember, if the customer is making a purchase decision, they will start by listening to someone they like and trust.

6. Be careful about which advertising experts you listen to. Service marketing doesn’t work like the one-event wonders that may have been proposed to you.

7. How many customers bought from you but are not servicing? If you use direct mail and they are dialing into your database, they should be able to tell you who you are retaining and who you are not.

8. Monitor everything, such as the number of loyal customers, number of customers who service between 0-24 months, and number of defecting customers. Send a message according to known behavior, not just the year and model.

Depending on what statistic you follow, a loyal client to the service department will give you a chance to sell them their next vehicle about 75 to 85 percent of the time. This means if you have a loyal customer base of 3,000 customers, you will have 2,550 ups or 850 per year over the next three years.

So, is your service department a profi t center or an investment in advertising? This example shows that there are at least 70 quality ups per month from your dealership customer base of 3,000 customers, and your closing ratios should be high.

We are always looking for a magic pill or the next new idea for advertising that will sell more cars. However, the largest profi t center is under our nose and is easy to market to. Expenses will become more of an issue for 2008 and into 2009. Service is looking to be a pretty good investment within your portfolio!

Chuck and Tricia Patton are the founders of Traffi c Builders Inc. They can be contacted at 866.859.8520, or by e-mail at [email protected].

ChuckPatton & TriciaPatton

SERVICE: PROFIT CENTER ORADVERTISING INVESTMENT?

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More Training. More Professionalism. More Gross. More Energy.That’s our specialty.

Frustrated by continual poor results from your advertising?Worn out from the lack of energy & enthusiasm at your store?Worried about your store’s future profitability?Need a strategy to increase revenue in a tough market?

Since 1993, thousands of dealerships have relied on G&A Marketing to deliver winning solutions to these problems and more.

If you’re serious about seeing what the best car guys in the industry can do for your store, call us.

Contact Matt Baker anytime: [email protected]

1-800-688-1370 • [email protected]

www.gamarketing.com

World Class Staffed Promotions and Direct Marketing for the Automotive Industry

The Best Staffed Events Start

With The Best Teams.

20


Since entering the retail automotive

industry in 1971, I have experienced seven economic downturns. Not all were considered “recessions,” but in each case it became very tough to sell and deliver vehicles. What separated the winners from losers during those times? Below are tips that have worked in the past, and will work in the future.

• Eliminate Stinking Thinking — Turn off the news and stop reading negative articles. Drive by a Wal-Mart and look at how full the parking lot is.

• Conduct positive and motivational sales and training meetings.

• Go Back To the Basics — Work every customer properly, do not base your decisions on credit scores alone and conduct proper interviews. You will be surprised how many customers have available cash or co-signers if you will interview each one properly.

• Clean up your offi ce — We all know how good it feels when we do spring cleaning, and the same goes for your offi ce. Make it a positive place to work and conduct business.

• Kiss More Frogs — When times are diffi cult, you must talk to more people in order to deliver the same number. If 7 out of 10 customers who visit your dealership are in some way credit challenged, you simply have to “kiss more frogs.” Our company recently contacted 3,000 leads that were seven days old, and 31 percent said they had never been contacted by a dealership. Instead of complaining about how bad

leads are, stop pre-qualifying from credit scores and call these buyers.

• Work the fi le cabinet — In your fi les there are hundreds of customer references that may be in the market for a new or used car. Commit to making 10-15 calls per day to former customers or their friends.

• Reach out to your customer database — One way to reach customers in a cost-effective manner is through mobile text messaging.

• Think outside the box — If you keep doing what you’ve been doing, you will keep getting what you’ve been getting. Be creative, and work with good vendors who will offer different programs to help sell more cars.

• Review your inventory — Quite often, opportunities are missed because dealerships stock the wrong inventory, and when you try to structure a deal, the payment for that model will not work.

• Rearrange your lot more often — Make it look like cars are being sold daily.

• Talk to customers with older cars in for service — You will be surprised how many prospects are in your dealership each day who are thinking about trading cars, especially those with three- to four-year-old vehicles that now require more service.

When we were faced with diffi cult times, the fi rst order of business was to develop a solid survival and growth plan. Managers must look at non-essential expenses. However, be very careful not to panic

and make wholesale cuts in areas that are revenue producing, i.e. marketing, sales and advertising. Track the performance of each advertising medium and determine which one provides immediate results with excellent ROI. Dealerships today have more choices than in the 1980’s when we had to rely on print, TV, radio or mail. Today a dealership can contact national lead providers and buy prospects who can be called immediately and turned into sales.

Another area to look at is overall performance by staff. If you have people who are handling customers improperly over the phone or in person, you must make changes immediately. During diffi cult times, you may only get one shot at earning a customer’s business — make it count! Before any customer leaves, a manager should speak with them to make sure everything has been done to make the sale. Phone calls are no different; take time to listen to how staff members are handling inbound and outbound calls and make sure you do not lose a customer before they step on your lot.

In closing, many of you reading this may not have experienced economic downturns; however, successful auto and fi nance persons including myself have, and the truth is if you think positive, work smart and stay focused, you will not only survive diffi cult times; you will come out a winner.

Paul Snider is the CEO of CIQ/VOISYS Inc. He can be contacted at866.492.9209, or by e-mail [email protected].

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TOUGH TIMES NEVER LAST - TOUGH PEOPLE DO

SteveBrazill

FIGHTINGMURPHY’S LAW

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Murphy’s Law needs no

introduction. You’ve seen its result too many times. Everything was going along just fi ne (you thought), then — POW. Trouble strikes from out of the blue, catching you unprepared. And, because it’s Murphy’s Law, it does so at the worst possible time. Where do all those problems come from?

Here’s an experiment. Before your next sales meeting, have each of your salespeople make a list of everything that can go wrong during a presentation and demo drive, or everything that can go wrong during a delivery. Specifi cally, they are to prepare a list titled “Opportunities for Error.” Tell people in advance you will pay $50 for the best list (Go ahead — you’d put a $50 spiff on a car and think nothing of it.) and make it sound like a fun exercise, which should be easy because some of the items will be humorous. Then, challenge your people to think of ways to keep those errors from happening. Don’t tell them how; just keep them on task and make them do the work — and the thinking.

Next, move this operation into your service department. Be sure to have your technicians and service writers together in the same meeting. We like to split things based on job functions, but customers don’t see us that way. They either like the dealership or they are angry with the dealership. Get your people to solve problems the same way customers perceive them — as one unit. Offer a spiff for best work, just as you did with sales. Once again, make them responsible for the solutions. Parts and Body Shop come next.

Don’t forget your managers. They shouldn’t need a spiff, but their thoughts on things that can go wrong are important, too. And, as with your troops, their ideas on how to prevent them — and their participation in the process — are vital.

By this time you should have had a few laughs and the fertile minds of your employees should have alerted you to some unanticipated opportunities to be stung by Murphy’s Law. More importantly, your people have taken the lead in fi nding ways to prevent (some of) those errors from occurring in the fi rst place.

Your next stop should be in accounting

— maybe the most important stop. When the people who handle your money prepare a list of things they can imagine going wrong, though, don’t expect to laugh. This is the stuff nightmares are made of.

Steve Brazill is the chair of automotive marketing at Northwood University, Texas Campus. He can be contacted at866.861.1515, or by e-mail [email protected].

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THE FORMULA FOR WINNING- FOUR FAIL SAFE STEPSHow would you like to guarantee

that your team would beat 90 percent of your competition 100 percent of the time? As a leader, would you be interested in eliminating the “wannabes” from the winners? If I told you the plan was too easy for most people to grasp, would that surprise you? Oh, there is one small caveat: The plan is “dressed up in overalls and resembles hard work.” This fact alone serves to stop most people in their tracks. One last thing: The plan is time tested and irrefutable.

When young salespeople ask me what the keys to winning in sales are, I always start with the same advice that I am sharing with you today. The reason is simple — if they do not follow this formula, everything else I might teach them is irrelevant. This formula produces consistent and effi cient performance at all levels, regardless of the position. In fact, the formula is available to all, but the brutal truth is that the strategy is implemented by very few people in our industry. Why? It is just too simple.

Show Up On Time, Ready to Work I know what you’re thinking — “Hey Paul, tell me something I don’t know.” OK. It is not what you don’t know that is killing you, it is what you do know and don’t do. We know we need to be on time, but how many people are late at your place of business each week? We know we need to come to work to do the work, but how many people show up and spend the fi rst hour doing anything but working? The answer is obvious — far too many people and far too often.

The Remedy: Script the fi rst 60 minutes of each day for your people. Start at 7:37 a.m. instead of 8:00 a.m., for example, and make the beginning of each day fun. Connect portions of individual bonuses to timeliness and set a new standard of excellence regarding how you enter the day. If late and out of focus is okay with you, then you must learn to live with it.

Show Up Mentally Prepared with a Plan Of ActionHow many of your people come to work everyday with a written plan of action? Is the answer 10 to 20 percent? In most cases, the answer is nowhere near that good.

The brutal truth is that mental preparation and planning are essential ingredients for ultimate success. The fact is that even though we know this to be true, we continually fail to require our people to do what it takes to win. Why? There are a million excuses and absolutely zero good reasons.

The Remedy: You must implement a Daily Activity Report Process in your sales departments that you stick to everyday. Require your people to present a detailed plan of action every morning that you approve, improve or disapprove with reason. This will allow you to help focus their efforts and activities toward the results they desire. This process will also heighten focus and mental preparation.

Show Up and “E” Up All DayWhen I teach at NADA every year, people always talk about the energy, enthusiasm and excitement I bring to my presentation. I always tell them that they just need to “E” Up. Think about it this way: If you are not bringing these three ingredients to your work, why should I buy from you? These are not optional components of winning in today’s more competitive market. No customer wants to buy from a dull, boring, uninspired sales person who lacks enthusiasm, excitement and energy. Not today, not tomorrow — not ever.

The Remedy: First, you must understand that the “E” Up process is not hype. Second, you must create an environment where these principles are always openly recognized and supported. Third, you must tie the work activities on their plan of action to their personal goals and dreams, which will stimulate their enthusiasm, energy and excitement. Last but not least, as a leader you must live these principles yourself in a consistent manner.

Show Up and Execute The last step of the four is the great separator of winners and losers in life and business. You can either talk the game or walk the game. Most people waste enough time to be wealthy beyond their wildest dreams. Most people look out the window and blame everyone else for their shortcomings and failures, when what they really need is a mirror. The fact is simple and stark: You must accept 100 percent responsibility for your destiny.

The Remedy: You are given 86,400 seconds everyday to use as you wish. The key is to ask a better question all day: “What’s important now?” Whatever the answer is, take action and execute. Simply put — stick to your plan and do the work.

Paul D. Cummings is president and CEO of Paul D. Cummings World Wide Enterprises. He can be contacted at866.865.3171, or by e-mail at [email protected].

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SEE SPOT RUN - SEEN SPOT LATELY? KEEP READINGLast week I had dinner with Megan.

Megan is blonde, blue eyed, and very cute.

Megan is four years old.

My daughter has been Megan’s nanny for some time and periodically my wife and I will have dinner with our daughter, Megan, and her brother, Will. We gave Megan a Disney book on “The Lion King” and “Finding Nemo,” two of her favorite movies. She was so excited looking through the books, then looking at my daughter and asking if she would read them to her. It won’t be long until Megan is learning to read for herself. Here’s how it will begin: Spot...Look.See Spot.See Spot Run.Run Spot Run.

Remember Dick, Jane, Spot, and the whole “Reading” family? This is much the same as it began for me (MANY years ago) and maybe the same for you. The real question for most people is “when does it end?” When will Megan — or you — stop reading to learn?

I know it’s been a while since second grade, but we learned some valuable lessons there we should never forget — and chief among them is learning by reading. There’s more to Sam I Am than liking Green Eggs and Ham. Reading really is FUNDAMENTAL to succeeding in most anything.

What if top performance, high achievement, big success and a richer life were as simple as reading, listening and writing? You know, just being on the look-out for learning, paying attention and writing a few notes about what you’ve learned? That would be easy to do, right? Problem is it’s easier not to do it, and that is the option most people choose.

I’ve had people say to me, “Michael, I’d like to read more but it’s too hard for me to fi nd the time.” Tell me you won’t, but don’t tell me you can’t because it’s too hard.

Just so we understand the difference between hard and easy:

Climbing Mount Everest would be “Hard.”How about running a marathon? Hard also!

Getting the picture? Feeling a little silly on the “too hard” excuse? Reading is easy. In his book The Little Guide to YOUR Well-Read Life, Steve Leveen gives his take on how you can read just enough to become well read. I love the book and have even given it recently as a gift to a CEO whom I would describe as an avid reader, mostly because he decided to become just that, a reader of books. He is as busy as any top executive I know, yet somehow fi nds the time to invest in himself (and his company, and his people…) by reading. In fact, I sat in on a recent dinner of chief executives who spent the better part of dinner discussing a book they had all just read. That’s a big clue of top performers and top performance — READ. Or make a commitment to reading MORE.

One of the truly great “little” books you could read in just a few minutes is Books are Tremendous, by my friend Charles “Tremendous” Jones. In it, he offers his advice on why to read. Charlie says:

“I hope the books you discover through this book will enrich your life so tremendously that all who meet you will sense that you are a better person because of the books you’ve read. As you read, remember…

Don’t read to be big, Read to be down to earth. Don’t read to be smart, read to be wise. Don’t read to memorize, read to realize. Don’t read just to learn, read to sometimes unlearn. Don’t read a lot, read just enough to keep yourself curious and hungry, to learn more, and to keep getting younger as you grow older.”

How can you become as excited about reading and learning as Megan?

1. Choose to BeginOr begin again, to read. Reading is like most anything else in that you actually have to do it to get better at it. Start with a book you’ve heard about, maybe a business book or personal development book or book on encouragement. Encourage yourself by reading a positive message. You won’t have any problem balancing that

with the all-too-available negative stuff you hear everywhere, most everyday.

2. Choose to ContinueOnce you’ve gotten started with most any book, take a trip to the bookstore or the library and just hang out for a few minutes. Chances are pretty good you’ll fi nd something that interests you or catches your eye or that you’ve heard someone you respect or admire talking about. Pick it up, browse through it. Books are attractive if you’ll give them a chance.

3. Make Some NotesWrite down a few notes on what you learned from a book. Maybe it’s just one thing that really stood out in your mind, or the main principle or idea you got from the book.

Then make it a practice to incorporate your reading notes into conversations, like, “Hey have you ever read the book Think and Grow Rich? I just read that (again) and….”Becoming known as a reader is a powerful thing in so many ways.

4. Re-READHow about an old favorite that you read once upon a time? Or a classic book that you’ve always wanted to know more about? How about The 7 Habits? Or The Greatest Salesman in the World? Or Good to Great? There are lots of reasons to read, but my favorite reason is to improve me. What if just by reading you could improve you and your thinking and your attitude? The good news is you can. Why do YOU read? Or why don’t you read more? In a couple of years when Megan starts reading for herself, how many books will she have to read to catch up with you? How many books will you read in the next two years? Here’s to reading, and to becoming a well-read student of books and life.

If you’d like the rest of my short list on how you can read more and get more from it than you could ever imagine, e-mail me at the address below.

Michael York is a professional speaker, writer and business consultant.He can be contacted by e-mail [email protected], or visit www.MichaelYork.com.2

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LauraNoonan

ONE TOOL = THREE SIMPLE STEPS TO GROW YOUR BUSINESS

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Have you been looking for a

cost-effective way to move units, increase service revenue and process more credit applications — all so that you can boost your bottom line?

Look no further than the equipment right on your desk — the telephone. The fi rst challenge of course is to get that phone to ring. Then you must also understand which advertising efforts are making your phone ring and learn exactly what happens on those incoming calls.

First, to get the phone to ring you need to advertise – that’s easy. But, to get the most out of your advertising campaigns, you should include one pivotal tool – one that generates higher response rates and brings in more calls: A toll-free vanity 800 phone number.

Just look at some of the well-known businesses that currently use vanity 800 numbers:

• 1-800-FLOWERS• 1-800-GOT-JUNK• 1-800-PICK-UPS (UPS)• 1-800-GO-FED-EX (FedEx/Kinkos)

These brands successfully relay to consumers what they sell, who they are and that they are the “go to” companies for fl owers, junk removal and shipping services.

By locating and selecting a vanity 800 number that makes sense for your dealership, you are scaling one of the highest hurdles. A number like 1-800-NEW-AUTO or 1-800-PRE-OWNED, 1-800-NEW-CREDIT, or 1-800-NEW-

SERVICE tells people exactly what you’re dealership offers

and makes it effortless for

buyers to contact you to get a new car, new fi nancing or schedule their next service appointment.

Once you have that powerful advertising response mechanism, the three simple steps to growing your business fall into place — because the vanity 800 number does the work for you.

Step One: Improve Your Advertising’s PerformanceMake your advertising work harder and bring more buyers onto your lot. You only have seconds to make an impression, and words (i.e., a vanity phone number) are much easier for people to remember than a string of 10 random numbers.

When you leverage your vanity 800 number in all of your advertising, you’ll see 30 to 60 percent more incoming leads. In fact, a recent study from InfoSurv, Inc. shows that vanity 800 numbers are proven to improve consumer recall in print advertising by 84 percent. And, when used in broadcast advertising like radio and television, vanity 800 numbers yield a nine-time higher recall rate than a numeric toll-free number. So, by using a vanity 800 number in your advertising, you’re including a built-in, cost effective direct-response tool that will bring in more leads to your dealership. Just make sure you have a good offer and strong message — something that will encourage prospects to call you.

Step Two: Capture the details of your incoming calls and build your lead management systemAll of your advertising efforts are incomplete if you’re not following up and analyzing how well your television and radio spots, mailing campaigns,or print ads are pulling. A vanity 800 number

can come with Web-based real-time call tracking reports that provide detailed information on your incoming calls — what days and times are busiest, for instance, and where your callers are located — telling you which markets you’re most successful in, and which ones may need more of an advertising push or special offer. Tracking detail also provides caller names, addresses, average home values and average household incomes. Use this information to develop targeted campaigns by geographic location and by demographic profi le. You’ll discover where your best prospects live, and where those customers are that may need some extra attention or promotional offers as incentive to trade in their current vehicle.

Step Three: Record yourincoming callsRecording calls is the best way to monitor fi rsthand the quality of your sales and service staff. Play back recordings during department meetings and use them in training sessions to demonstrate how to build relationships and get buyers onto your lot and into your service center.

Become the “go to” dealership in your market for sales and service. Secure a vanity 800 number for your dealership and include that powerful and performance-enhancing tool in your advertising — in all of your advertising, including radio, television, direct mail and outdoor ads. Using one pivotal tool in your advertising will bring you more phone ups and allow you to track and monitor those increased calls.

Laura Noonan is the vice president of marketing and corporate communications of 800response. She can be contacted at 866.388.1397, or by e-mail [email protected].

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I remember once hearing a radio D.J.

take calls from listeners responding to trivia questions. After one of the contestants answered a rather diffi cult question correctly, the shock jock asked him what he did for a living. The caller responded that he was a petroleum fuel injection engineer. After pausing for a moment the D.J. said, “So, you pump gas.” The caller reluctantly responded, “That’s right.”

A similar situation played out before me several years ago. I was sitting in on a round table discussion for one of the largest import distributors to the U.S. The attendees were discussing everything from best practices in fi xed operations to menu selling in F&I. At one point, one of the directors on the panel brought up the problem of the exuberant amount of turnover in the industry. After some discussion on the topic, one of the attendees concluded, “Let’s face it, the problem is no one wants to say they sell cars,” despite the fact that most everyone there, including senior management, had at one point sold cars.

I also sold cars for years, and am proud of it. When he heard of this, however, an old friend just couldn’t believe it. He became even more concerned when he was told that I sold used cars. I was amused by his reaction. Did he realize that he made far less money than I did yet worked twice as hard? Even the fact that I made more money selling cars than most of the people from which I took credit applications didn’t seem to change his image of my profession.

Image. How interesting, I thought. The businessmen at the round table had a similar thought. After listening to them talk

about improving the image of the car sales professional for some time, I interjected. “Give me an example,” I said.

One of the members took me up on this. “Well, if you were at a cocktail party, would you want to say that you sell cars or that you sell real estate?” he asked. “Perception is reality, and admittedly the title ‘car salesman’ or ‘salesperson’ doesn’t sound very fl attering. After all, a person that sells real estate or insurance calls himself an agent. A person that sells stock is called a broker. It just sounds better than ‘car salesman.’”

He was on to something. After thinking it over, I suggested that if they were considering applying a different title, they should consider “associate sales manager.” After all, that is what car sales professionals do — they manage their sales. After some deliberation, all agreed and mandated that their sales people be referred to as “associate sales managers” from then on. After being properly trained and obtaining an acceptable degree of sales performance the title could be changed to “sales manager,” I added. And what would the sales manager be called? Well, how about “director of sales”?

You see, when asked, most people tend to agree that recognition is just as important as money, if not more. Therefore, your title simply makes a difference. It makes your image and helps you garner recognition. Think about it. The person that serves up your Grande Caramel Macchiato at your local Starbucks is called a “barista.” The term “barista” refers to one who has acquired some level of expertise in the preparation of espresso-based coffee drinks. Which sounds better to you, “barista” or “waiter”?

A few months ago, I was working with the fi xed-operations for a large dealer group. I am known for always being politically correct, but this time I made reference to mechanics. I was promptly reminded that mechanics like to be referred to as “service technicians.” Likewise, service writers, I was told, have become “service advisors.”

The next time you run a help wanted ad for a sales position, ask yourself: How would you respond to the titles “salespeople,” “sales professionals” or “sales associates.” How would you respond to “associate sales manager”? I’ll bet there would be an increase in the number and quality of applicants simply by changing the title. Why? Because the title sounds better. Many of your best prospects probably overlook the opportunity in your ads simply because of the perception they have of a “car salesman.” Many of your best prospects could already be managers or assistant managers in other industries and would like to make more money but don’t want to take a step down in position. Using a title with the word “manager” in it would make it easier for them to not only accept the position but also save face.

If simply changing one’s title improves the way he or she feels about themselves and results in more sales, then it may be worth considering the change. So, are you a “lot boy,” “lot person,” “lot porter”? Consider this: perhaps what you are is an “inventory manager.”

Marc Smith is the senior vice president of The Cardone Group. He can be contacted at 866.665.4479, or by e-mail at [email protected].

WHAT’S IN A TITLE

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JoeCala

PREPARATION TIMEIS NEVER LOST TIMEAnyone who has achieved success

did it by preparing for success. No one has ever achieved success on accident — success is achieved on purpose. It is reached by a prepared process of successful habits, actions and disciplines applied to that specifi c area of success. So if we want to be successful in any area of life, we are to have a goal in mind to prepare for. The second habit of Stephen Covey’s book, 7 Habits of Highly Effective People, says to “Begin with the end in mind.” When you begin your journey with the end in mind, it will affect not only where you end up, but also the condition you’re in when you get there and after you arrive.

I live in New Jersey. New Jersey in January can be extremely cold. If I am going to be taking a trip in the month of January to St. Lucia in the Caribbean Islands I am going to begin with the end in mind while I’m preparing for my trip there. Even though I would need to wear long sleeved, sweatshirts, sweaters and winter clothes to keep me warm in New Jersey, I am not going to pack the same way for St. Lucia. Where I am going affects the way I pack my clothes and prepare myself.

A runner also begins with the end in mind. When he enters a race, he has his sights set on the fi nish line. However, when a runner enters a race, he does so with the intentions of not just making it to the fi nish line but making it to the fi nish line fi rst. The preparation for this race will not determine whether he fi nishes the race or not, rather what place he is in when he fi nishes the race. How you value the end of something will determine the level of preparations and contributions you give to that matter.

I didn’t realize this principal while I was younger. I knew there was going to be an end to high school but I never really cared about the condition I’d be in at the end. I failed to see the value of the end so I didn’t do much to apply my best efforts and abilities to affect the condition of my graduation. So instead of fi nishing with stellar grades and above average accomplishments, I performed below average and did the minimum requirements needed to just barely graduate. Preparation time is just as important as graduation time. Now a few years later when I went

to Bible school, I began to see the value of not only fi nishing something, but also what condition am I in when I fi nish something. This time around, I started not only with the end in mind, which was graduation time, but the condition I wanted to be in at graduation time. So instead of preparing for below-average results to graduate with the bare-minimum requirements needed to walk down the aisle, I prepared, studied and paid attention, with the intentions of graduating above average and with stellar grades. So, at the end of Bible school, not only did I graduate, but I graduated with a 4.0.

So what’s the reason for these stories? To illustrate the success achieved based off of this principle, no matter what area of life you apply this to. Whether it’s in the work place, in the sale, in training, in your personal life or in any journey you take, as you allow the end to infl uence your starting point you’ll achieve great success. Here’s some steps to take:

The 1st Step — Defi ne Your EndWhat is the specifi c target you’re aiming to hit? What is the specifi c goal you want to achieve?

1. Personal Goal

2. Work-Related Goal

The 2nd Step — Set Your ParametersClearly lay out the time frame in which you want to achieve this goal. Have a starting point and a deadline.

1. Personal Goal


The 3rd Step — Count Your CostEverything worth having in life costs something. Everything comes with

an exchange. What are you willing to exchange? Whether it’s money for a product or service, or time for training and instruction, write down what you have, what you need, what needs to be improved, what needs to be changed and what needs to be removed so you can reach your goals.

1. Personal Goal


As you apply these steps into your life you will see the end results you desire, reach your end in above-average condition and become a success on purpose.

Joe Cala is an author, seminar leader, and Internet/Fleet sales manager of Gateway Toyota. He can be contacted at 866.859.6402, or by e-mail [email protected].

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MSDaymondDecker

Consumers today receive a great

deal of information through a number of channels, including direct mail, phone, and e-mail. The challenge for your dealership is to break through this clutter by providing your prospects and customers the detailed information they want in a way they want to receive it.

eNewsletters can be a key part of your customer communication programs by providing in-depth education about your dealership in a format that can be easily accessed by consumers.

eNewsletters, sent out on a monthly basis, can keep your customers and prospects informed of your latest news, promotions and dealership specials. The most effective eNewsletters contain features including navigation bars that drive traffi c to your Web site, links to video test drives that provide vehicle data, and discount coupons to drive sales inquiries. eNewsletters can also contain service and safety tips, lifestyle articles and embedded live chat capabilities, all built with navigation to contact the dealership with a mere click of the mouse.

The eNewsletter can be an invaluable tool in maintaining direct contact with your customer base. An automotive group in Rhode Island, for example, recently launched their fi rst eNewsletter with amazing results. Within the fi rst 24 hours they achieved a 27.2 percent opening rate from their more than 12,000 customers.

All the features of the eNewsletter can be edited by you to tailor your communications to match the reader’s interests. Additionally, customers are supplied this information independent

of dealership staff, meaning you are prospecting — and even closing — when your dealership itself is closed. With hundreds of design concepts, you can tailor your eNewsletter to emphasize the brand or style of your dealership.

Capturing Leads and Brand AwarenessThere are many benefi ts to eNewsletters including:

• Increased customer awareness and loyalty by keeping your dealership top of mind

• Enhanced brand and image by differentiating yourself from your competition

• Increased organic leads by driving more traffi c to your Web site

• Increased fi xed ops revenue with coupons and promotions

Depending on how you have your eNewsletter structured, your dealership can be provided with insights into key metrics with monthly reporting features. You’ll be able to track metrics such as:

• Open rates• Click-through rates• Popularity of content• Coupons downloaded• Number of chats engaged• Opt-out percentages • Hot-spot analysis of articles featured

These reports will help you target the right customers with follow-up campaigns by showing you exactly what interests them. This information will continuously improve your newsletter’s effectiveness and your dealership revenue.

Elevating ROIA recent study of newsletter recipients found that 63 percent of eNewsletter

subscribers are more likely to purchase a vehicle from the dealership that sends them a newsletter, and 77 percent are more likely to use the dealership for service.

Roy Reutter, of Sheehy Auto Store in Richmond Virginia, said Sheehy’s customers receive a digital newsletter that can be measured by tracking every single person who reads it, what they read, and how much time they spend on the articles. “New or used vehicle sales are our main objective,” Reutter said, “but our biggest benefi t has been in the parts and service revenue that is generated as a result.”

The bottom line is that your customers will feel more informed of the value of your dealership, driving a higher degree of loyalty.

Daymond Decker is the product marketing manager for ADP Digital Marketing. He can be contacted at 866.860.6287, or by e-mail [email protected].

ENEWSLETTERSBuilding a Stronger Relationship With Your Customers

63% of eNewsletter subscribers are more likely to purchase a vehicle from the dealership.

77% of eNewsletter subscribers are more likely to use the dealership for service.

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DennisGalbraith

ONLINE MEASUREMENTWhat Your Lead Management System Won’t Tell You

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Evaluation of our business is

often so focused on e-mail leads and call metrics that we tend to lose sight of the larger objective – traffi c and sales. When we place an ad online for either a new or used vehicle, the ultimate goal is to match consumers to the right inventory and drive them into the store where they ultimately make a purchase. The most effective online advertising drives quality traffi c in multiple ways and on all types of inventory. Whether in the form of an e-mail, a phone call, a visit to your store’s Web site or a step into your showroom, effectively placed online ads should deliver in-market shoppers who are progressing toward a fi nal purchase decision. While e-mail and phone leads tracked through your lead management system are the most concrete evidence of this impact, they only represent a fraction of what online advertising delivers.

Getting the Whole StoryTo get the complete story and to better measure the holistic value of online campaigns, it’s time to look beyond lead management tools and the data they offer. We must start understanding what the limitations are of online tracking, and start placing value on the intangibles that often do not readily reveal themselves. So what else do we need to look at? Here are a few things to keep in mind when evaluating online performance that your lead management system can’t and won’t know.

• Not all new-car leads are equal, and they can’t be measured as if they were. Until recently, nearly all new-car leads were the result of online quote request products that drove e-mail leads to the dealership. Buyers interested in a particular make and model would e-mail the store to learn more about your price and you could easily track these prospects through your lead management system. New-car value from online services was easily measured — you’d simply divide your monthly cost by the total number of vehicles sold based on leads received to arrive at an accurate cost per sale. While this is still the right way to measure lead generation services that deliver quote requests, it will not give you an accurate measure of performance when advertising new-vehicle inventory online.

• New vehicle inventory is rapidly displacing request-for-quote leads as the dominant model in automotive Internet. Consumers want to see actual new cars available on dealer lots. This shift has consequences and requires a shift in measurement that your lead management tool won’t fully be able to capture. Just as with used-vehicle listings, consumers are free to link from new-car inventory to the physical store by means that can be tracked, such as phone and e-mail. But they can also simply walk into the store with no traceable online activity. How will your lead management system track these buyers? Chances are, you may not be able to. Therefore, the next time you compare new-vehicle advertising sources, be sure you are not comparing apples to oranges based on the numbers in your system. You can evaluate one request for quote service against another, but you’ll be giving inventory services the short end of the stick if you only measure them on e-mail value delivered, a fraction of their total worth.

• Internet customers don’t come with labels. Nearly 80 percent of all shoppers now go online as part of their automotive research process, but only a small fraction of them will send an e-mail lead or call a traceable phone line. During the online research

process, shoppers are deciding both what and where to buy. If you’ve effectively marketed your store, buyers will come into contact with your brand at multiple touch points, including listings, search engine results and your Web site. It’s in that process that they are evaluating your dealership. If they like what they see, most shoppers will walk through your door to learn more about a vehicle, take a test drive or inquire about fi nancing. Because walk-in customers in most cases don’t identify themselves as Internet shoppers, your lead management tool never knows they took the bait. How will you source the sale? A postsale survey administered in the F&I offi ce is recommended to better understand the true sources of your walk-in traffi c.

• Engagement matters. The average online shopper spends approximately 60 seconds with a detailed vehicle listing page. That means your store and your inventory are the focal point of attention with an in-market buyer for a full minute. Online shoppers are engaged in the process, and most take the next step toward purchase without ever contacting you by phone or e-mail. Despite the fact that online engagement and activity is often behind the sale, your lead management system won’t ever give you details on engagement levels, nor will it look for a correlation between recent online activities and sold vehicles. To better understand the value of engagement and its impact on sales, look to your online providers for detailed reports on what customers are doing online, how often your vehicles appear in detailed search results, and how many times buyers print your listings and directions to your store.

Regardless of what you choose to track and what can be effectively measured, it’s clear that online advertising has proved its value beyond the leads that can be clearly demonstrated. Isn’t it time we turn our attention to the big-picture results?

Dennis Galbraith is vice president of advertising products at Cars.com. He can be contacted at 866.487.4022, or by e-mail at [email protected].

80% of shoppers

“...only a small fraction of them will send an e-mail lead

or call a traceable phone line.”

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Last month we discussed the

awesome success of the Synergy Sessions and I promised to go over my interpretation of Stephen Covey’s book, The 7 Habits of Highly Effective People. I have come to realize that there is no way I can do Dr. Covey’s book justice with a simple article, so I decided to turn it into a seven-part series. Each month I will focus on one of Covey’s “7 Habits.” This month I will begin the series with the fi rst habit: Be Proactive. There are several interpretations for this, but for this article we will focus on one, and that is take initiative; don’t wait on things to “just happen.”

In life you have two choices: to be reactive or to be proactive. It is much better to be proactive. I want to acknowledge a very proactive dealership — Reed Lallier Chevrolet in Fayetteville, North Carolina, led by Mike Leechford. Mike’s Internet department consistently sold 20 units a month. Mike realized that just having a Web site, lead management tool and some leads did NOT mean he was an Internet sales department. Reed Lallier Chevrolet completely redesigned all of their tools to be much more strategic. They created a whole new branch of their Internet department, and set up Internet sales coordinators. These people sell the appointments, NOT the cars. These coordinators aren’t simple telemarketers or receptionists, but highly trained Internet and phone ninjas! They have been trained in the art of automotive Internet sales, and handling objections and rebuttals. Reed Lallier modifi ed the compensation plan in the department to make sure they were amply compensated for their efforts, but more importantly they were rewarded for specifi c and relevant achievements.

This was no “on the job” training effort; everyone was trained and certifi ed. These folks were put through an intensive on-site fi ve-day training program that went into detail about their tools, resources, online marketing, standard operating procedures, intensive role playing, practice drills and coaching. Additionally, Mike Leechford,

attended an off-site week-long powerful Internet director immersion program. Reed Lallier Chevrolet chose to make a serious commitment to achieve the absolute fastest response times for their Internet prospects.

They also created the new position of third-shift coordinator. A staffer actually works from 9 p.m. to 6 a.m. The dealership has literally 24/7 coverage. The new program has been well received by online visitors; and has delivered four additional units just last month from these new initiatives. The dealership promotes their services to soldiers at nearby Fort Bragg. Soldiers in Iraq are online viewing the dealerships’ Web site and the third-shift coordinator has e-mailed them personally minutes after they were on the Reed Lallier site. But, the success has not been solely from soldiers. You would be surprised how many people are online those hours researching and shopping for a car. What has resulted from these efforts? Reed Lallier Chevrolet has gone from 20 units a month to 60 units a month with this new Internet structure. Don’t just wait for things to happen; make them happen. Take a proactive approach.

Internet Sales 20 Group’s Internet Director Immersion ProgramI recently hosted an Internet Sales 20 Group in Philadelphia with dealers coming in from all over the country. It was based on the traditional format of used by NADA and NCM for their 20 groups. The fi rst section went over the philosophy and strategy of Internet sales. The next day the participants spent time in our corporate offi ce in Philadelphia to get a behind-the-scenes look at how analysts conduct their audits and mystery shopping calls. Next we spent six straight hours going over the three-square exercise (I wrote an article several months ago in Volume 6, Issue 6 of AutoSuccess explaining in detail the three-square concept). We couldn’t believe that six hours passed on one exercise, but with our focus, the time went by quickly.

On the third day we hit the throttle. All of the participants were back in class, but this time:

• We had the team mystery shop their dealership and fi ll out report cards based on the quantative and qualative measurements of the phone call.

• They went through full analytics of their departments, such as reporting and ROI calculations.

• They went into their CRM tool and broke it down. They learned how to analyze their ILM/CRM for information that can help them evolve their department.

• We had four senior executives, each with more than 10 years of automotive experience, drill down different components such as process, human resources, management and technology analysis.

On the fourth day, the class took a fi eld trip. We went to a dealership just outside the city that consistently delivers over 100 units a month from their Internet department. In the afternoon they went to another dealership, this one in New Jersey, that went from 60 units a month to over 131 units a month on the Internet.

The group said this was very powerful for them to actually see it done the right way. Each dealership was unique, but both had tremendous success with their efforts. Attendees said that most training is theory and some strategy, but they never have been in a session where they could see everything taught being implemented fi rst-hand in the dealership. They got a lot out of seeing teams in action.

The fi nal day was a brief summation and then testing, which they all passed with fl ying colors. Then we had an in-depth recap of the week and action planning for when they get back to their dealerships. Many said they couldn’t wait until the next Internet Sales 20 Group!

Sean V. Bradley is the CEO and founder of Dealer Synergy. He can be contacted at 866.648.7400, or by e-mail at [email protected].

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INTERNET SALES 20 GROUP VII

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80% of our customers will have a check-in-hand,and ready to buy a car. Preferred Dealer is a national networkof quality car dealers with a desire to gain new, ready-to-buycustomers. Our pre-approved car buyers arrive with financingand all you have to do is put them in the driver’s seat.

If you prefer selling cars, become a Preferred Dealer®.Each month, we approve hundreds of car buying customers in yourarea, mail them a check and send them to a Preferred Dealer.

Contact us to choose your spot on our exclusive Preferred DealerNetwork and start getting these customers.

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Complete Customer Contact DetailsExclusive TerritoriesApproved Customers, Check-in-handSubprime Auto Finance Leads24/7 Online Dealer Access

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Sales training should be fun, with great

attitudes and accurate advice. Most people would say advice doesn’t cost you anything; it does if it’s bad advice that creates negative attitudes.

Training starts with open-minded people. A friend was training in a large dealership. The range of people went from rookies to 12-year professionals. Professionals? The trainer was attempting to teach the benefi t of a longer demo to show feature benefi ts; turn on a favorite radio station, talk about the customer’s favorite hobbies, do a trial close and have fun.

The old professional said, “It’s not how long you go on a demo; it’s what you say.” He then folded up his hands across his chest as to say “I told you so.” This “pro,” who delivered nine units the month before, just took all the positive and accurate advice out of the training. Guys with this attitude

shouldn’t be in the class — and should be out of the car business — because of the damage their negativity does to others. They are defending why they sell fewer than 10 units a month.

A few classes later in the same dealership, phone calls came up. The trainer was teaching about going out prospecting every day at lunch, and that handing out cards will give you leads, and how staying in contact with your customers on the whole family’s birthday will generate leads and sales. More money and fun will be the results.

Another old pro said, “Just get me the customers and I’ll show you how to sell cars.” People who want to learn at the class started to ask themselves “Who do I listen to – the old pro or this trainer?” The gentleman also delivered nine units the month before, and never considered the trainer might have been right all along.

These people should be kept out of class. A good manager can take a rookie and deliver 10 units without any problems.

The same trainer was at another lot in a three-location dealership, with a totally different atmosphere. The 13-year pro asked more questions on how to deliver 30 units a month than the rest of his class did combined. This pro not only helped others by asking questions, but was truly interested in delivering more units.

For best results, start with people who want to go and are not a prisoner. The old pros have the gold mine, but most don’t know

how to get the gold. Teach the others, and when younger salespeople start to sell more cars and have bigger paychecks, the old pros became open minded.

You can put up with people selling 10 units a month, as long as they aren’t negative. If negativity continues, drive them to the dealership down the road and recommend them for a job. If there isn’t any problem, keep up the training.

Good training works best without negative objections or obstacles. Just be very picky on where you get your advice. Don’t let someone with a lot of years of experience and delivering 10 or 12 units a month help destroy someone’s future.

There are always three types of people in class: rookies, people who say “prove to me that it works,” or people who say “I tried that and it doesn’t work here.” Obviously, the third type can be a pain in your backside, but don’t fi re them unless they are negative. Do regular training and, when others go by them in sales and the size of their paychecks, do not rub it in their face. Instead, say, “Let’s talk and see what we can do to get you to the next level.” If you can accomplish this, you will have a tremendous tool for any newcomer. That person who you had patience with then will say, “I used to think that way.” You will get an unbelievable amount of respect from other people with a lot better results. Most important, you now have a trainer that has a great attitude and accurate advice.

One exercise that will help make people change quicker is to ask your successful salespeople what they think they did to sell vehicles. Share this accurate information in your morning meeting. You will hear:

• “I think the longer demo made the difference.”

• “You were the only one who showed us the service department,”

• “You sent me a ‘thank you’ for calling and we thought that was nice,”

• “You were the only one who sounded like you knew what you were doing....”

Share your success story in every meeting. People will all pick up on it.

Fran Taylor is the president/CEO of Taylor Techniques. He can be contacted at866.848.9864, or by e-mail [email protected].

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MikeHoffey

EASIER ACCESSTO SERVICECONTRACT INFORMATION

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The explosion of the Internet and the

sophisticated high-tech look of most auto dealerships Web sites have created a need to look beyond the traditional approaches to delivering service contract information. Today’s Web shopper is moving rapidly through the purchase process with the help of Internet managers and new concepts such as OCO (Offer-Counter Offer). In some capacity, not interfacing with a live body until it is time to work up the paperwork is exactly what a consumer is looking for. With this in mind, it is time to revisit the manner in which these shoppers are learning about F&I products in conjunction with their automobile purchase.

In today’s selling environment, the presentation of service contracts still lies in the hands of F&I managers. This approach has positive and negative benefi ts. Certainly the F&I manager can dictate when and how the sharing of service contract information occurs during the buying process. Some consumers may be exposed during the test drive, while they are just kicking the tires or during the actual buying process. What really goes on in the consumer’s mind during that discussion when the consumer has little if any information about service contracts? Making a $30,000 buying decision is not easy. It is a tense and uncomfortable position for many. Dealerships have made positive strides in creating a relaxing atmosphere to help make the buying process less diffi cult, but unfortunately not everybody is totally comfortable with the whole “experience.”

When you throw the service contract discussion into the middle of this mix, it can create two very clear options — yes or no. Yes, means, well “yes” and you go on down the road and blend the expense into the fi nancing. Drawing on the lowest common denominator approach, with a great line such as “…and that increases your monthly rate only $4.00 —you made a great decision,” makes life fun. Everybody wins. However, behind every “no” are a myriad of reasons and thoughts that potentially never get fully fl ushed out. How much does the customer know? What preconceived notions do they have about service contracts? Good F&I managers work diligently to bring value to the service contract discussion and with a focused effort, many of those

conversations turn into revenue. If F&I product discussions jeopardize the entire sale, that conversation is most likely over. To maximize the F&I revenue opportunity, every dealership should be targeting a 100 percent service contract sales close rate for the pre-qualifi ed candidate pool.

How do you get there? We all know that this valuable revenue stream is even more critical during this economic downturn. Expanding the outlets for general service contract information is a critical step to reach the goal. A quick Google keyword search for “auto service contract information” gives you a lot of choices and does help. The real opportunity is by tying this information into the dealer Web site. With the explosion of good dealer Web sites and consumers shopping on those sites, why not give them all the information they need right there? Some sites have it fi gured out, but many have a limited amount of information available, and it is too many clicks away from the home page. So what do you do? Adding “Service Contracts” to the primary banner bar on a home page and linking the consumer to high-quality content about service contracts is a great step in the right direction.

Picture this – the consumer sees the car they want online. They look at colors and styles. Their excitement level grows. They run the numbers. They want to buy. They see an online message within the vehicle description saying “this vehicle is eligible for a fi ve-year service contract — Click here!” They click, read and learn. It makes sense. They have some questions but the seed has been planted. The consumer walks into the dealership with screen shots of the car they want and the service contract plan that goes with that car.

Creating a realistic view that an auto purchase and a service contract go hand in hand makes all of our lives easier. The integration of this important information to the Web site-shopping experience is a perfect and natural way to get to the 100 percent target goal — it’s a beautiful vision that can become a reality.

Mike Hoffey is the vice president of marketing at Protective Life Corporation. He can be contacted at 866.492.8932, or by e-mail at [email protected].

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www.autosuccessonline.comwww.autosuccessonline.com

BrianHall

THIRD PARTYLEADS AND BDCNow More Than Ever

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Prior to the year 2000, most auto

dealers generated prospects via newspaper, radio, TV, direct mail, on-site promotions and off-property promotions. Things seemed easier back then, but times have changed. Depending on the size of the advertising budget, some dealers were content just running a full-page ad every weekend in their local newspaper. The large-volume dealers had a larger advertising budget and were able to support their newspaper advertising with radio and TV. The largest dealers had advertising budgets for both new and used car departments, as well as parts and service departments utilizing TV, radio, newspaper, direct mail, liner ads and billboards. Some dealers even had their own in-house ad agency, and almost every dealer’s best sales day was Saturday. Today, more and more dealers are purchasing third-party leads — new car, used car and subprime auto-fi nance leads.

New / Used Car Leads — Otherwise known as new/used car purchase requests, these consumers are typically very specifi c in terms of make, model, equipment and color and are essentially looking for a price quote from a dealer. Consumers usually request price quotes on several makes and models, therefore, are sold to multiple dealers. Selling consumer information to multiple dealers presents a challenge and requires dealers to contact and follow-up more effectively in order to “win” the business.

Sub-prime Auto-Finance Leads – Due to credit impairment, these type of consumers are generally seeking pre-approval prior to shopping for a vehicle. In many instances, these consumers purchase what they can afford, or, more specifi cally, a vehicle that meets the guidelines of what a lender is willing to advance. The challenge with this type of lead is that only a portion of these consumers qualify for fi nancing — particularly with the current non-liquidity of the credit markets. In addition, these consumers often apply to more than one Web site, causing the consumer information to be sold more than once. Again, more than ever, dealers need to contact and follow-up quickly and effectively.

Lead Generation is Big Business for Hundreds of CompaniesDealers purchase leads from third-party

providers — some of which simply aggregate leads from other generators and then resell to dealers, and others that both generate organic traffi c and aggregate lead sources for dealers. Lead quality varies from provider to provider, depending on the type of advertising used to generate a consumer’s information, the type of partnerships providers have with other generators and internal quality control mechanisms designed to scrub faulty leads. The obvious benefi t to the dealer who purchases leads from third-party providers is that they pay on a per-lead basis and the risk of advertising response rests on the provider’s shoulders rather than the dealer. The downside is that dealers cannot control the quality of the leads and must rely upon the integrity of the provider.

Reduce Advertising Costs and Increase Lead Flow In today’s economic environment, it’s imperative that a dealer’s advertising dollars are maximized for optimal return. Many dealers have been forced to reduce their advertising budgets while still trying to maintain sales volume. Demand for quality, in-market leads has risen as dealers continue to cut costs and migrate their traditional advertising dollars (TV, radio, direct mail, etc.) to third-party lead providers. For example, let’s say a dealer spends $30,000 per month on traditional advertising and generates 300 new prospects for a cost per lead of $100. If you were to spend that same $30,000 and purchase leads from a third-party provider, you would receive 1,000 leads, assuming a cost per lead of $30. But there is a difference — buying a lead is just that. You still need to get them into your showroom, and as mentioned previously, you are likely competing with other dealers for the customer’s business. More than ever, dealers need to execute consistent contact and follow-up procedures in order to convert leads to sales.

Solution Plan A: Spend $9,000 and purchase 300 leads at $30 per lead. Hand those leads out to your salespeople with a plan. Salespeople are to contact 70 percent of all the leads and schedule appointments for 50 percent. Additionally, your sales people are to call and confi rm appointments and execute towards a 65 percent show rate. Next, your sales people are to work

the leads that show and close 30 percent. This would result in 20 sales at a cost per sale of $450. This performance could be enhanced if your salespeople followed-up on the no-shows, rescheduled appointments AND followed-up on the shows who did not buy. Just 10 more sales from diligent follow-up would reduce your cost per sale to $300. Unfortunately, most sales people are not the best phone people so this plan most likely will not work.

Solution Plan B: Spend $30,000 to $40,000 implementing your own in-house BDC department. Spend $25,000 per month for a small BDC management team and staff. Spend $30,000 purchasing 1,000 leads at $30 per lead. Wait — over budget. Try again. Spend $7,500 per month and purchase 250 leads at $30 per lead. Now for the BDC plan. Contact each and every lead and schedule 99 percent appointments. Then call and confi rm all scheduled appointments and make sure 99 percent of all scheduled appointments show up. Make follow-up calls on all appointments that didn’t buy and schedule 99 percent of them as Be-backs. For sure, this plan won’t work.

Solution Plan C: Contract with a third-party lead provider that will supply your dealership with quality leads AND a customized BDC service. Spend $20,000 purchasing 500 leads at $40 per lead including the BDC process. Dealers should expect this type of result: Contact 85 percent of all leads and schedule appointments for 70 percent The BDC calls and confi rms all scheduled appointments and averages an 85 percent show rate. Using these performance standards and keeping with a 30 percent close rate on the appointments that show, you would sell 76 vehicles at a cost per sale of $263 — but that’s not all. The BDC will make follow-up calls on every appointment who showed but didn’t buy AND no shows. Sell just 10 more vehicles and lower your cost per sale to $232. This plan should defi nitely work.

Brian Hall is the president of BlueSky Marketing. He can be contacted at866.799.3549, or by e-mail [email protected].

AutoSuccess Jul08

Business

Transcript of AutoSuccess Jul08