PSADA Winter 2011

BG Products LPP- Scarff Testimonial Ad - October 2010 Placement Dealer Magazine Full Page - 8.25” x 10.75” Full Bleed - 8.5” x 11”

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BG Products LPP- Scarff Testimonial Ad - October 2010 Placement Dealer Magazine Full Page - 8.25” x 10.75” Full Bleed - 8.5” x 11”

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The Puget Sound DealerOfficial Publication of the

Puget Sound Automobile Dealers Association16101 Greenwood Avenue N Bldg 2100

Seattle WA 98133Phone: 206 542-3551Fax: 206 542-7561

Email: [email protected]

PresidentJason CourterHonda Auto Center of Bellevue

1st Vice PresidentJim MorinoAcura of Lynnwood

2nd Vice PresidentSara CarterCarter Subaru, Shoreline

3rd Vice PresidentSteve KleinKlein Honda, Everett

TrusteeJim WalenFord of Kirkland

TrusteeGreg RairdonRairdon’s Dodge Chrysler JeepBellingham, Kirkland, Monroe, ArlingtonRairdon’s Hyundai, BellinghamRairdon’s Nissan of Auburn

Immediate Past PresidentSue ByersBob Byers Volvo, Seattle

PSADA StaffJames R. HammondExecutive Director

Ron OlsonAYES State Manager

Linda HalversonExecutive Assistant

Susan LeonhardiPrograms and Data Base Manager

Michele FoleyOffice Assistant

A Message from the EditorRemembering Biff Brotherton

InsidethisIssueFor information on advertising

in this publication contact Jim Aitkins

Blue Water Publishers, LLC360.805.6474

7 Message from the President - Jason Courter9 Ten Tips for Avoiding Problems with Employees11 Why Shoppers Buy New13 Important Tax Information You Need to Know15 Directing the Priority of Work19 Clyde and Mark Revord23 Protecting Your Business and Your Family with a Buy-Sell Agreement24 A Guide to the Federal Risk-Based Pricing Rule25 Identifying “Key Swap” Activity and Preventing Theft26 Recent Ruling States Employers Not Required to Enforce Employee Breaks27 Retailing Woes Easily Fixed with 7 Simple Customer Service Training Tips29 The 7th Profit Center31 Decatur High School AYES Program Wins Honors33 The Company Killers - It’s About Attitude37 Global Journeys with Janet Maines - San Francisco41 Coffee Break - Historical Facts That Won’t Change Your Day

Biff Brotherton was my friend. I remember the day in 1984 when he walked into our downtown PSADA head-quarters on Westlake and announced he had just bought Frederick Cadillac. In 1990 Biff became President of PSADA for two consecutive terms – the first dealer to ever be president two times running. Biff was a bigger than life man. He was a gentleman, a philanthropist and a lover of people. He was a great family man and ran one of Puget Sound’s greatest family-run dealerships. In 1990 Biff and I went to NADA to participate in the Washington Conference where we visited Washington State members of Con-gress. We were between congressional office buildings and it began to pour – heavily! Our suits were soaked. We ran into a café and sat across from each other with water dripping down both of our faces. Biff was laughing and said, “This is great fun. Let’s have lunch.” We laughed and talked and I realized I really loved this guy. His passion for joy, people and our industry was infectious.

I will miss that big Biff smile, the genuine welcome every time I saw him, and the incredible resource he always was whenever PSADA need-ed help with one of its ideas or ventures. Biff was one of our great in-dustry cheerleaders – which reminds me of another wonderful memory. Each year at the Spring PSADA convention at the Inn at Semiahmoo we had a volleyball tournament – or more specifically the Brothertons vs the Nelson Family Tournament. Both families had enough kids and

recruits to fill a whole team. It was a great family dealership competition that we all looked forward to each year. And Biff was right there leading his family on.

Biff, we will all miss you. You were special to all of us!

James HammondExecutive Director

Cover photo by Adam Buchanan

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You Talk. We Listen.At Ryan Swanson, we connect with people on a human level. That’s why our approach to helping

clients reach their goals is practical, straightforward and cost effective. It’s our no-nonsense way of

doing business that puts people first, like Brad Brotherton of Brotherton Cadillac.

Humanese Over Legalese. 206.464.4224 | www.ryanswansonlaw.com

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IStrong Auto Show

Shows Strong Consumer Buying Interest

Message from the President

Jason CourterHonda Auto Center of Bellevue

It is nice to see the economy improving and auto sales strengthening. Most auto analysts report that there is a great pent-up need in the automotive buying public. The fall Seattle Auto Show certainly was an indication of consumer interest. It was one of the best auto shows in years. For the past two years there has been a net 18 percent increase in attendance – the largest double digit increase since 2000. This year we surveyed the attending public to see how interested in purchasing a new vehicle “they really were.” We got a nice response. The survey showed that sixty-nine percent of the people attending were considering a new vehicle within the first three to six months of 2011. Half of these people said they were highly likely to purchase their vehicle within the first three months. Two out of three attendees isn’t a bad ratio. The survey was a significant cross section of attendees and represented the entire I-5 corridor from Bellingham to Olympia.

The Seattle Auto Show was also very successful financially. It is because of the Seattle Auto Show that we only pay $250 dues per year to be members of PSADA. That is a great bargain considering all the services we receive from PSADA to help us operate our dealerships. It also helps PSADA continue to support the Professional Automotive Training Center at Shoreline Community College, which, at last count, was training nearly 12,000 dealership incumbent technicians a year. So the Seattle Auto Show helps us three ways – with annual vehicle sales, with dealership services and employee training.

We appreciate your membership and look forward to providing you outstanding services throughout 2011.

M

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Maintaining a healthy employee relationship is critical for dealers, who must comply with a myriad of employment regulations while providing benefits that attract and maintain a stable work force. Above all, communicating with and informing your workforce will help prevent employment related legal trouble down the road. Here are ten tips dealers should consider to avoid legal trouble with employees.

1. Hire the Right Employee Check out that resume – over a third of resumes contain some untruth Check references, consider a background check Do not discriminate – race, color, religion, sex, marital status, national origin, age,

disability, and in King County sexual orientation In the interview, ask open-ended, probing questions dealing with job-related issues Match the candidate’s business style with the company’s business style Avoiding the wrong employee can help you avoid legal trouble

2. Culture: Establish It and Live It Every company has a culture whether established on purpose or by happenstance Take the opportunity to create the culture you want in your company, then follow it Culture results from assumptions and understandings that underlie behavior and

actions within the work environment Culture affects every part of your business, so use it to your advantage

3. Don’t Forget Your Employee Handbook Use the handbook to inform and notify Policies should be reasonable, understandable, and explained Distribute the handbook to all employees Hold people accountable to the policies in the handbook Apply the policies evenly Make sure the handbook has a clear, unambiguous, and conspicuous disclaimer

stating that the handbook is not a contract Have the employee sign an acknowledgement form Keep up to date and follow the law, especially related to employee leaves of

absence Policies are not just for employees, but also for the employer to follow

By Britenae M. PierceRyan Swanson & Cleveland





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4. Properly Classify your Employees Independent contractor or employee? Exempt or non-exempt? In your offer letter, state the type of employment Erroneous classification can lead to liability for

uncollected tax, issues with employee benefit plans, reporting and employer issues, liability for unpaid overtime, etc.

5. Communicate Communication is a two-way street Communicate often Communicate performance expectations Communicate how management is responding to

problems/complaints Communicate policies and procedures Allowing issues to escalate by not responding creates

more trouble

6. Give Feedback, Including Reviews and Discipline When Necessary Clearly articulate performance expectations and give

feedback on whether those expectations are being met Follow up on consistently poor performance – taking

the time and pains to honestly evaluate an employee’s performance and document it will prevent future legal trouble

Do not surprise employees at year end evaluations or upon termination

Have a second set of eyes review a performance evaluation

Keep all evaluations, warnings, memoranda, etc. in the employee’s personnel file

Consider a probationary period for new hires to see if the employee is well suited to the company and position

Make sure the employee fits into the company culture When employees do a good job, tell them

7. Do Not Ignore Discrimination or Harassment Include anti-discrimination and anti-harassment

policies in the employee handbook Dissemination of the company’s policy against

harassment and discrimination is essential to any company’s defense if trouble arises

Policies should include reporting methods for harassment, including methods for bypassing a harassing supervisor

Promptly follow up on complaints with thorough investigations and appropriate discipline

In some cases, employers may be liable for harassment by supervisors

Provide training to supervisors It is in everyone’s best interest to not allow

discrimination or harassment

8. Train Your Employees Help improve and update their skills Train them when hired, after a promotion Train managers to manage performance, get help with

certain behavioral challenges Train employees on policies, expectations of behavior,

and how to address issues Training benefits them and you – the company will

be better able to defend itself in litigation and some problems may be avoided altogether by reducing or eliminating harassment, by complying with FMLA and ADA requirements and by establishing and consistently using sound hiring and evaluation practices

9. Terminate and Layoff Employees the Right Way Think through terminations and layoffs and plan the

process Document and support the decision – this will

significantly reduce legal problems by helping dispel the notion that discrimination was at the root of the termination or layoff

Do not discriminate For severance packages, make sure to get waivers/

releases (and that they comply with all applicable laws)

Take advantage of the exit interview

10. Shift Focus from Staying out of Trouble to How to Optimize Employee Performance

Britenae M. Pierce is a member and full-time litigator in the Litigation and Employment groups at Ryan, Swanson & Cleveland, PLLC. She can be reached at (206) 654.2289 or [email protected].

Communicating with and informing your workforce will help prevent employment related legal trouble down the road.





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Information for this article provided by AutoTrader.com.

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After months of uncertainty and speculation regarding the expiring tax cuts from the Bush era, President Obama signed a long awaited tax bill on December 17, 2010. Now the big question is, “What does this new bill mean for you and your business?” Here is an overview of the highlights.

IndividualsIndividual tax rates: The tax cuts generated from the Economic Growth and Tax Relief Reconciliation Act of 2001 have now been extended through December 31, 2012. This means the individual tax rates will remain at 10, 15, 25, 28, 33, and 35 percent for another two years.

Payroll taxes: A payroll tax cut has also been placed into effect for the 2011 calendar year, which further benefits individuals. The

employee portion of Social Security taxes has been reduced from 6.2 percent to 4.2 percent up to the taxable wage base

of $106,800. This means a possible annual tax savings up to $2,136. This payroll tax cut is for the employee portion only; therefore, the employer portion remains at the full 6.2 percent.

Capital gains and dividends tax rates: Qualified capital gains and dividends tax rates remain at a maximum of 15 percent (zero percent for taxpayers in the 10 and 15 percent tax brackets) for another two years, which is excellent news since they were expected to rise to at least 20 percent effective January 1, 2011. The 2010 Tax Relief Act also

extends the 100 percent exclusion of gain realized from qualified small business stock held for more than five years.

By Megan Condon, CPAPeterson Sullivan, LLP

Important Tax Info

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It is important to keep in mind that when dealing with installment sales, the gain on payments is taxed at the rates in effect in the year of payment, not the year of the initial sale. Therefore, although an installment sale may be initiated during the two-year extension of the lower capital gains rates, payments made post December 31, 2010 have the potential to be taxed at a rate of 20 percent or higher.

State and Local Tax Extenders: For those taxpayers that itemize deductions, the state and local tax deduction has been extended through 2011. For taxpayers residing in states like Washington which doesn’t have a state income tax, this deduction may provide additional tax savings.

Alternative Minimum Tax (AMT): Millions of Americans were in danger of falling subject to AMT beginning in 2010. However, a “patch” has been put in place, increasing the exemption amounts in 2010 to $47,450 for individual taxpayers, $72,450 for married taxpayers filing jointly and surviving spouses, and $36,225 for married couples filing separately. In 2011 these exemption amounts increase to $48,450, $74,450, and $37,225 respectively.

BusinessesBonus Depreciation: Bonus depreciation has been extended for 2010 and 2011 with a little twist. Fifty percent bonus depreciation has been extended for qualified investments placed in service from January 1 through September 7, 2010. For qualified investments placed in service September 8, 2010 through December 31, 2011, 100 percent bonus depreciation is available. Bonus drops back down to 50 percent for the 2012 tax year for qualified property. Unlike Code Section 179, bonus depreciation is limited to new property but is not limited to smaller businesses or capped at a certain dollar level.

Code Section 179: Businesses can take up to $500,000 of Code Section 179 on qualified property placed in service in 2010 and 2011. Unlike bonus depreciation, Code Section 179 applies to both new and used qualified investments. However, certain limitations apply. Code Section 179 begins to phase out if current year qualified investments exceed $2 million. Also, unlike bonus depreciation, Code Section 179 cannot generate a taxable loss. The 2010 Tax Relief Act provides for a $125,000 dollar limit and $500,000 investment limit in 2012.

Work Opportunity Tax Credit (WOTC): The WOTC is a tax credit incentive for private-sector businesses to hire individuals from certain target groups, such as qualified veterans and designated community residents. The WOTC is equal to 40 percent of up to $6,000 of the qualified employee’s first year wages, subject to certain restrictions. This credit, which was scheduled to expire August 31, 2011, has now been extended through December 31, 2011.

Federal Estate TaxA compromise was made regarding federal estate tax. Threat of a 55 percent tax rate and a $1 million applicable exclusion amount was imminent for years starting after 2010. Under the new bill, the maximum estate tax is set at 35 percent with an applicable exclusion amount of $5 million. This is temporary and sunsets December 31, 2012.

In addition to the new tax rate and exclusion limits, the new tax bill eliminates the modified carryover basis rules and replaces them with the stepped-up basis rules that applied until 2010.

For 2010 decedents, a choice must be made. Either pay an estate tax up to 35 percent with an exclusion amount of $5 million and get a step-up in basis, or elect to pay no estate tax and get a modified carryover basis. Determining which

avenue to take is based on the facts and circumstances of each decedent’s estate and both the income tax implications at the heir’s level as well as the estate tax implications at the estate level.

Gift TaxFor gifts made in 2010, there is a $1 million exemption and the gift tax rate is 35 percent. For gifts made after December 31, 2010, the gift tax rate and exclusion are reunified with the estate tax, with the estate tax and gift tax exclusion both at $5 million.

The items listed above are only selected items from the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. For more specific information on the covered topics or for information on additional subjects, please contact your tax accountant or the tax department at Peterson Sullivan LLP.

For more information about this topic contact Megan Condon at 206-382-7777.

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With the limited people resources we have today in dealerships, it’s more important than ever that each person is “working on what’s most important”. This means that as managers we need to be reviewing the priorities they’re using in choosing “what to work on next” throughout the day. As they pick up new work, it’s important to be clear about where the new work “fits into” what they’re already working on. Here’s the employee’s dilemma:

The boss has just given me this new assignment and from the way he talked to me about it, it’s got to be pretty important. I better stop what I’m doing and get this new assignment done right away.

As the boss, is that what you want them to do? Maybe… Maybe not… Have you ever had one of your charges “drop what

they’re doing to get that new thing done” when you really didn’t want them to do that? What they were working on

was really more important. Here’s a way to stop that from happening…

Direct the priority of work

When you give one of your people a new assignment, take a minute or two to “talk about where this assignment fits in to what they are already doing.” Have them give you a quick run-down of their work plan for the day and then re-direct their efforts in

the priority that best fits the outcomes you need to have achieved that day. We do this in Service all the

time, stopping work on a vehicle that you have all day to complete to work on a vehicle for someone who’s waiting or

to do a quick diagnosis so you can update a customer on what needs to be done.

By John Strom

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Discussing and agreeing on the priorities of work is best for everyone involved – it frees up your employees to focus on their work without worrying whether their priorities are right. It gets the most important things done first. And you’re less stressed because you know the plan will produce the best results!

Encourage your folks to “discuss their work priority”

I also recommend you encourage your people to “discuss their work priority” with you. If you forget to discuss priorities, encourage them to bring up what their work priorities were prior to receiving this new assignment so you can discuss them and help your people focus on the right priorities. The goal is always to “get the right things done in the right order.” This will keep you both out of a lot of trouble!

Here’s how your employee’s response might sound when given a new assignment from you:

“Sure thing, boss. I can do that (…or if it was something they wanted to do – “I’d love to do that”). Let me tell you what I’m currently working on so we can see where working that fits in.”

• You then discuss how the new assignment fits into the priority list.

There are numerous benefits to you by having these discussions:

• You may realize that what they’re working on is more important than this new assignment and, therefore, not have them do it (…or do it later).

• You’ll rearrange their priorities so they could include implementing this new assignment (…maybe taking away something they were currently doing).

• Or you may simply just add it to their list of priorities, with a discussion about when each thing they’re working on will be completed (…again opening up a discussion about priorities).

And there are some very valuable benefits to your employees as well:

• You will better understand (…and appreciate) what they do each day (their workload).

• Both of you will have more realistic expectations for

when (…and often how) things will be accomplished.

• You’ll both agree more on what is important – the priorities of their work.

• Their workload will tend to be much more realistic.

Failure to discuss work priorites and to review workload will result in both you and your people being “frustrated” (…even “upset” or “angry”) with each other. And if enough of the “right things aren’t done at the right time”, you both could lose your job. These discussions should help both of you keep your job and your sanity – both highly desirable outcomes!

John Strom has been helping retail automotive managers improve their performance for over 25 years. He has held a number of management positions in both single-point and multiple franchise operations, including General Manager. His company, Strom & Associates, is a member of the Performance Development Group. To learn more about their services, visit www.perdevgrp.com.

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Mark (left) and Clyde Revord in front of famous holiday window in front of dealership, December 2010.

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For decades, the soaring glass that fronts Clyde Revord Motors has been a window into a world-class dealership that has also reflected on the world outside.

Music and movie stars…sports champions…national heroes…historical moments. Over the years, they’ve appeared in living color, forty feet high, usually with a clever car reference or a fitting tribute attached.

“The window is an Everett landmark,” says Revord. “People drive out of their way to see what’s up there. It’s always been the best advertising we do.”

“We’ve always said – ‘drive a little, save a lot’.”

Much like the icons his window has portrayed, Clyde Revord is legendary among Northwest auto dealers. A skilled carpenter, he worked construction out of high school, sold his first car in 1958, and worked his way to a general manager position at Russ Dunmire’s Oldsmobile franchise. In 1980, the Olds district manager recruited him to take over the Evergreen Way dealership where he’s been ever since.

A window intoa world-class dealership

Clyde andMark Revord

By Craig Chastain

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Clyde Revord - A legendary Northwest dealer and one of Everett’s finest leaders!

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The operation saw steady growth, adding Buick and Pontiac, then GMC to the lineup. He expanded briefly into Burlington in the mid-80s with a Chrysler franchise, but today Revord Motors resides solely in Everett where they continue to raise the bar in sales and service of Buick and GMC.

“I felt a twinge when Oldsmobile stopped making cars,” says Clyde. “They got me started in the business – I can re-member when the Olds Cutlass was one of the hottest selling cars in America.”

One of the most impactful events for the dealership was the addition of GMC in 1999.

“Truck sales are fifty percent of the market in this part of the country,” he says. “Bringing on GMC opened up a whole new area of opportunity for us, from standard pickups to the new cross-overs and SUVs.”

Revord recalls a time – before SUVs – when “station wagons” were all the rage.

“Back in the ‘60s and ‘70s, March was always a hot sales month,” he says. “That’s when families would come in to check out the latest Vista Cruiser in time for Spring Break and summer camping trips.”

The father of five brought his son Mark into the business at an early age, bonding and building their working relationship on go-cart tracks around the country. Early on, Mark displayed a competitive personality that helped cap-ture carting trophies and bragging rights from coast to coast. Clyde headed up the pit crew while providing expertise and counsel that continues today. A robust 75, he continues to frequent the show-room while Mark runs the business.

“I come in most every week,” he says,” to give someone a pat on the back or some words of encouragement, and

Mark is real good at pretending like he’s listening to me.”

Indeed, Mark has listened and learned from his dad, adapting the busi-ness practices that have brought the Revord brand such great success while streamlining business components like their marketing and promotion. E-news-letters and social media have replaced radio and TV ads as the car-buying experience continues to evolve.

“The Internet has allowed us to stay much better connected to our custom-ers,” says Mark. “We have an on-line newsletter where they can see all the latest Buick and GMC products and hear about service specials and special events.”

“Today’s car buyer is much more informed,” he continues.”They do their homework and have a pretty good idea of what they want. We sell a lot of cars over the phone and on-line after the buyer has looked at the inventory on our website.”

New technology aside, the Revord team continues with the personal touch that has made them one of the region’s most successful dealerships. Shuttle transportation for service department patrons and lifetime car washes are just a part of their commitment to customer service.

That high level of satisfaction extends to the Revord team. Mark and Clyde report with pride that they have retained their key people through the recent economic challenges; several staffers have been on board for more than twenty years.

Community service has also helped to keep the team bonded. From donat-ing vehicles to deserving charities to financially supporting organizations like

the Deaconess and Lutheran Children’s Services, the Revord family has made substantial contributions to their neigh-borhoods and neighbors. Mark’s wife, Vicki, has had a major involvement with Operation School Bell, which helps disadvantaged students with clothes and supplies, and with the Assistance League’s successful Everett thrift shop.

For Clyde Revord, hunting, fishing, and trap shooting have replaced long hours on the showroom floor, and he winds down a sterling career knowing his creation is in good hands. He’s seen a lot of ups and downs during 50 years in the car business, and these days he’s optimistic.

“I’ve been through all the good times and the not-so-good, but these days I’m feeling like the business is coming back,” he says.

The Revord team will continue to sell cars, as they say, at “wholesale prices to retail customers.” Or, as one of their movie-themed window displays would proclaim – “If it’s Revord, they will come.”

Much like the icons his window has portrayed, Clyde Revord, a robust 75, is legendary among

Northwest auto dealers.

72707_AT_AT9-403.inddJeff Domrase / Heather Yuhas9-11-2009 4:19 PM jdomrase_G5_06051

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AutoTrader.com91-02050-001727078.5” x 11”8.75” x 11.25”7.5” x 10”300 dpi000 - AutoTrader.comMagazineMarketing that works for Tammy

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MARKETING THAT WORKS FOR TAMMYTammy is a people person. And the more people in the D.C. area

who see her cars, the better. So she knows that our high-profi le

ads in the biggest shows on the biggest networks are important in

attracting millions of customers to her 27 dealerships. And our proud

sponsorships of MLB on FOX, NASCAR on FOX, NFL on FOX,

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more. Hey, like Tammy says, “We are in this together.” For videos of

success stories from dealers like Tammy, visit results.autotrader.com.

Ronda NassibAdvertising Consultant

Greater Washington, D.C.

Tammy DarvishVice President

“THEY’RE ALWAYS KEEPING ME IN FRONT OF SHOPPERS’ EYES.”

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72707_AT_AT9-403.indd 1 9/14/09 4:05:58 PM

TThe successful business you and your partners built together took years of hard work and a great deal of capital. You certainly want your business to remain prosperous long into the future. Preoccupied with the day-to-day details of running the operation, you probably haven’t given much thought to what would happen if circumstances abruptly took an unexpected turn. What happens if you or your partner becomes disabled? Worse yet, what if one of you died suddenly? Could your business survive such trauma? Would your heirs be able to take over or would they be forced to sell the business?

Partnerships Are Not EternalUnlike a corporation, a partnership

does not have an unlimited life. When a partner dies, the remaining partners legally become liquidation trustees. This obligates them to sell off the deceased owner’s share of the business. But to whom? At what price? That’s why business succession planning is so important. You’ll want to put into writing a formal plan of action that will allow a smooth transition of ownership and protect your family’s interest as well. A buy-sell agreement is one way to help assure the continuity of your business and give your family peace of mind.

Benefits of a Buy-Sell AgreementSometimes called a “business will,”

a buy-sell agreement is a legal contract among business owners that states what will happen should a partner leave the business due to death, disability, or a lifetime situation such as retirement. The agreement obligates the remaining owners to purchase the business interest of the partner who has left the business, and the departing partner (or heirs) is obligated to sell. This type of arrangement benefits your family in a number of ways: it will help free them of business worries at a time of crisis, guarantee a purchaser, and, if kept up-to-date, ensure a fair price for your business interests. Remaining owners also benefit from a buy-sell agreement: they know the purchase price of the business interests in advance; they don’t have to worry about new, perhaps unwanted, partners; and the smooth transition will help the company retain the confidence of clients and creditors. With the help of an attorney, these agreements are easy to draft and flexible, allowing for alterations with the consent of all parties involved.

How You Can Fund Your PlanOnce a buy-sell agreement is in

place, the next challenge is funding it. Where will remaining partners get the funds to purchase the business interest in question? There are a number of available options:

• Pay Cash - If sufficient funds are on hand, cash may be used to purchase the business interest in question. However, using savings that were earmarked for future ventures could endanger the long-term goals of the business.

• Take A Loan - If cash is not readily available, funds could be borrowed. The downside is that the extra expense of loan repayments may put

a strain on cash flow and the debt increase

may

72707_AT_AT9-403.inddJeff Domrase / Heather Yuhas9-11-2009 4:19 PM jdomrase_G5_06051

ClientJob #Prefi xTrimBleedLiveLine ScreenProduct CodeUnitCaption

AutoTrader.com91-02050-001727078.5” x 11”8.75” x 11.25”7.5” x 10”300 dpi000 - AutoTrader.comMagazineMarketing that works for Tammy

Job infoPrint ProducerAccount MgrArt DirectorCopywriterTraffi cArt ProducerScaleProof #

Prepared by:Southfi eld, MI • 248-354-9700

Chinn, JenniferDuda, JaclynCooke, MarkHutson, BryanHolmes, RyanLamoreaux, JamesNone1

ApprovalsFonts:News Gothic BT (Bold Extra Condensed, Con-densed), Adobe Garamond (Regular, Semibold), Helvetica (Medium)

Link Name: AT_9_004_TVWall_RM_4CSWOP.tif (CMYK; 674 ppi, 677 ppi; 44.47%, 44.29%), AT_Ult_com_Orange_4C.eps, AT_08_WWFY_pos_4C.eps, AT_09_DARCARS_K.eps

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100%bySaved at: From: Printed AtFonts

MARKETING THAT WORKS FOR TAMMYTammy is a people person. And the more people in the D.C. area

who see her cars, the better. So she knows that our high-profi le

ads in the biggest shows on the biggest networks are important in

attracting millions of customers to her 27 dealerships. And our proud

sponsorships of MLB on FOX, NASCAR on FOX, NFL on FOX,

BCS on FOX, as well as the NBA on TNT will attract millions

more. Hey, like Tammy says, “We are in this together.” For videos of

success stories from dealers like Tammy, visit results.autotrader.com.

Ronda NassibAdvertising Consultant

Greater Washington, D.C.

Tammy DarvishVice President

“THEY’RE ALWAYS KEEPING ME IN FRONT OF SHOPPERS’ EYES.”

AT9-403 / IADA/Puget Sound AAA

©2009 AutoTrader.com, Inc. All Rights Reserved. “AutoTrader.com” is a registered trademark of TPI Holdings, Inc. used under exclusive license. New England Patriots trademarks, including the Patriots logo, are the property of New England Patriots L.P., and are used pursuant to a licensing agreement with New England Patriots L.P.

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By Julie Wallerich, CLTCNew York Life Insurance Company

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negatively affect the company’s credit rating.

• Sell Assets - Another alternative is liquidating assets to raise the money. This method could have a devastating effect on the business’s future, and should be considered only as a last resort.

The Sensible SolutionIt becomes clear that a proper funding

vehicle is needed to make a buy-sell agreement as effective as possible. With its many advantages, insurance can be a convenient means to fund the agreement without incurring a large financial burden. Insurance creates a guaranteed source of funds to purchase the business interest in question. Proceeds are immediately available exactly when they are needed: in the event of the death or disability of the insured. In effect, it could be said that the cause that creates the need also creates the funding. Those proceeds are, in most instances, free from federal income tax, and may help avoid the delays of probate. A buy-sell agreement funded by insurance may be structured in a number of different ways to suit particular needs.

Now’s the TimeIt’s best to consider your options now

while you’re still in the position to direct your business. Speak with your partners and your family, as well as your legal and tax advisors and your insurance agent. If you’re like most business owners, your business and your family are the two most important things in life. You don’t want to gamble with the future of either one. A buy-sell agreement funded by insurance is a convenient way to put your business affairs in order while protecting your family’s interests. It can give you the peace of mind you need to focus your energies on the continued success of your firm.

For additional information, please contact Julie Wallerich at (253)221-2022

Beginning January 1, 2011, the federal Risk-Based Pricing Rule (RBPR) generally requires franchised car and truck dealers and other businesses that use credit reports (also known as consumer reports) and extend credit to consumers to provide a new notice, known as a Risk-Based Pricing Notice (RBPN), to consumers who receive credit from them but on credit terms that are less favorable than the terms received by a “substantial proportion” of their other credit customers. The Board of Governors of the Federal Reserve (FRB) and the Federal Trade Commission (FTC) jointly issued the rule as required by a 2003 federal law that seeks to alert consumers who receive unfavorable credit terms due to negative information in their credit reports that they can check for accuracy and, if warranted, correct. Because of the significant implementation challenges this creates for dealers in trying to determine which subgroup of approved credit customers must receive RBPNs, NADA recommended that the agencies permit dealers and other creditors to issue a notice to all of their customers who apply for credit. The agencies subsequently provided for an alternative notice that may be issued to all consumer credit applicants as a compliance option in the RBPR. This notice, known as the Credit Score Disclosure Exception Notice (Exception Notice), may be issued in lieu of a RBPN and must contain the consumer’s credit score, certain information to put the credit score in context, and boilerplate language to educate the notice recipient about credit scores and credit reports.

NADA anticipates that covered dealers generally will opt to issue to their consumer credit applicants the Exception Notice instead of the RBPN. Consequently, A Dealer Guide to the Risk-Based Pricing Rule primarily focuses on the Exception Notice.

This article is adapted from A Dealer Guide to the Risk-Based Pricing Rule, available through NADA University’s Resource Toolbox. Please visit www.nadauniversity.com.

A Guide to the Federal Risk-Based Pricing Rule

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Preventing Car Theft From Your Lot

By their very nature, car dealerships rep-resent an enormous attraction to thieves. The accumulation of great numbers of vehicles in one location complete with keys, is almost too good. Couple that with minimal human presence during late evening and early morning hours and a car dealership becomes a ripe tar-get. Such has been the case for several criminal enterprises aimed at exploiting car dealerships in Washington during the last decade. The following profile will offer insight into methodology used by such criminals and ways in which dealerships can mitigate the impact on their operations.

Law enforcement in the greater Puget Sound area has had numerous run ins with organized groups that have victimized car dealerships. The most prolific offender in this type of criminal activity was Devaughn “Buster” Dorsey. In late 2007 and early 2008, Western Washington dealerships were opening their doors daily to find high end do-mestic SUV’s, sport sedans, and imports missing from their lots.

In January of 2008, Detective Ser-geant John Anderson of the Washington State Patrol’s King County Regional

Auto Theft Unit received a phone call from a Kent Police Department detec-tive. Detective Sagiao and Kent Police had recovered a VIN switched Dodge performance sedan and in exploring the history of the suspect and the vehicle, had dis-covered evidence of an organized car theft effort. Sagiao described their sto-len car as a “VIN switch.” According to Sagiao, a source was pointing a finger at a career criminal, Devaughn Dorsey, AKA “Buster,” as the suspect in this recent string of thefts.

Dorsey was a suspect in eerily similar cases in 2004 and had been arrested by Seattle Police in connection with those investigations. He was prosecuted and sentenced for those crimes and gained early parole from prison in late 2007. Dorsey returned to his old ways, going back to an easy source of late model vehicles - car dealerships.

The Washington State Patrol, Kent Police and the Federal Bureau of Inves-tigation came up with a plan aimed at

targeting those found in possession of the vehicles in the hopes of getting to the root of the problem. Knowing Dorsey’s source of VIN plates from earlier inves-tigations, detectives traveled to Oregon

and over several days, inspected nearly 30,000 vehicles. Their work quickly led to the discovery of nearly 60 vehicles recently registered in Washington State bearing VINs from wrecked vehicles they had inspected in Oregon.

Local law enforcement quickly became aware of the prolific nature of Dorsey and his co-conspirators. Over the next several months, vehicles were

By John AndersonPresident – Western States Auto Theft Investigators – NW Chapter

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being recovered almost nightly. Detectives interviewed nearly 20 occupants and possessors until a pattern began to emerge. That pattern led investigators to conclude that Dorsey, acting in concert with others, was the driving force behind the thefts and VIN switching of dozens of vehicles. Nearly all of these thefts involved the same basic MO. Sales people were approached by customers toward the end of the business day. The customers were interested in vehicles tar-geted by Dorsey, based on make and model information from the stolen VINs. A customer would distract the sales person while another customer would switch the key for the vehicle with a similar looking key. The customers would return in the middle of the night and drive off with the vehicle, which was then VIN switched and sold to friends or acquaintances for prices that could only be described as “steals.”

As violence associated with the investigation erupted, investigators made Dorsey’s arrest their primary goal. After a federal witness in the case and her 12-year-old son were shot several times through a basement window, Dorsey was located and arrested. Dorsey and five co-conspirators pled guilty to 20 counts of the federal indictment dealing with car thefts. Dorsey alone was charged with two counts of witness tampering associated with the shooting of the federal witness and her son. He was convicted and sentenced in federal court in late 2010, to 48 years, bringing to an end his career as one of the most violent criminals in Seattle history. By this time investigators had recovered nearly 50 stolen vehicles worth over $1 million.

Sales Staff Can Help Prevent TheftThefts such as these can be mitigated in the future by

diligence on the part of dealership sales staff. Simple steps after each sales contact will quickly alert staff and manage-ment they may be targeted for thefts. When a customer is done viewing a vehicle, staff should check that all keys are accounted for and that the keys they have fit the vehicle locks and ignition. Staff should check that the FOB they have is the correct one and hasn’t been switched. Dealership management should address steps their staff should take in the event a key switch is detected. Under no circumstances should sales staff confront customers alone, if at all. In the event the customer has left, the vehicle in question should be secured until such time steps can be taken to secure the vehicle from any future theft activity. These simple actions can help prevent dealerships from be victimized by this type of criminal activity.

Recent Ruling States Employers Not Required to EnforceEmployee Breaks

A recent California Court of Appeals decision dismissed a class action brought against Chipotle Mexican Grill alleg-ing Chipotle violated labor laws by denying employees meal and rest breaks. In Her-nandez v. Chipotle Mexican Grill, Inc., the Second Appel-

late District of the California Court of Appeal agreed with the Superior Court finding that employers need only provide employee breaks, and not enforce whether or not employees actually take them. The decision came from a suit filed by terminated Chipotle employee Rogelio Hernandez. Hernandez asserted that although he received all of his breaks, they were frequently de-nied or interrupted by his managers. Hernandez sought to certify a class of thousands of current and former non-managerial employees who worked shifts for Chipotle since July 2003. Los Angeles Superior Court denied the certification since Hernandez’ individual issues could not be accurately linked to employee is-sues company-wide. The court also noted that requiring enforcement of meal breaks would place an undue bur-den on employers while creating incentives that might encourage employees to violate company policies. Had the Supreme Court held that employers had to ensure employees take breaks, a class action would then apply. This case is significant for employers not only for the employee break issues involved, but for employers who need to assess the validity of class certifications brought against their company involving predominately individual issues.

For more information, please contact Rick Lentini at (206) 654-2231 or [email protected].

By Rick LentiniRyan Swanson & Cleveland

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Some companies blame their customer service problems on part-time help, saying that the part-timers are just that - ‘part-timers.’ They don’t want to take responsibility. They don’t want to take ownership. They just want to take the money and run. They can’t wait to get off work.

No matter how your custom-ers come to you, in person or on the phone, ask yourself what type of cus-tomer relations training you have. And if there’s not one, think again.

“Gee, Nancy, I’m so busy doing other things. There’s just no time for this type of training. We’re just too busy to stop and train.” Too busy to be nice? Too busy to teach your employ-ees customer service? Think again.

It’s up to each and every owner or manager

to provide some sort of customer service training. Just putting

them out there and telling them to, “be nice” or

“tell everyone to have a good day,” is NOT customer service training.

Whether your customers call you or come into the store, following these Telephone Doctor ground rules can

help make your company the one the customer wants to come back to. It WILL give you the competitive edge.

Ground Rule # 1 - GREET CUS-TOMERS FIRST

Make it a game. If a customer says “hello” first, you lose. It’s amazing how often you can go into a store, any store, walk around - touch things - look at prices - and walk out. All without anyone saying anything to you. The minute a customer walks into the store the sales staff needs to be the one to say hello first. It’s their job to say hello first. It’s not the customer’s job to do it. That first friendly hello sets the stage; sets the tone to make sure the customer is IN THE RIGHT PLACE.

Ground Rule # 2 - SMILE

Right! It’s that simple! Make smil-ing on the job a condition of employ-ment and grounds for termination. Tell your staff that in the interview process. “We smile here.” It’s a simple state-ment and a powerful sales tool. Don’t relent on this one - ever! I recently heard about a young man, about 17, who quit his job two weeks after he started. When his folks asked, “Why?” his answer was, “They drove me crazy; they wanted me to smile all the time.”

By Nancy FriedmanThe Telephone Doctor

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Ground Rule # 3 - ENTHUSIASM COUNTS

Dale Carnegie said it first. And my father said it second. He used to tell me, “Enthusiasm is a disease - let’s start an epidemic.” And how true that is. When a customer brings something to the counter for you to ring up, or even tells you what they want on the phone, get excited. Let them know you care. When the customer sees, feels and hears your enthusiasm you’ll ring up a lot more sales. And your enthusiasm is a great setup for up-selling or cross-selling.

Ground Rule # 4 - DON’T POINT - GO SHOW

How many times have you walked into a store, asked for something, and the salesperson either just nods you to the item or only points to the direction without saying anything. When and if possible, WALK with the customer to the area they need. If that be-comes impossible, cheerfully direct the person to what they need and give clear, easy and, most important, friendly directions. “Aisle Three, on your right” is clear and easy, but not very friendly. This is FRIEND-LY:

“The New widgets? Sure, we have them. They’re great. You’ll find them right past the flower section in Aisle Three. It’ll be on your right hand side right next to the elephant display. (Using LANDMARKS really helps.) Let me know if you’re not able to locate them and I’ll get someone to help you.”

That’s clear, easy and FRIENDLY directions. Pointing is plain rude. (Ask ANY waiter to direct you to the restroom and 100% of the time they point. It’s possible to give clear directions to that area, too.)

Ground Rule # 5 - PLEASE, THANK YOU AND YOU’RE WELCOME

Yes, still the most favorite words to all customers. I used to be embarrassed to remind attendees to use those words. But I’m easily reminded that it needs to be taught. There’s not a three-year old that hasn’t been told, “Tell the lady thank you, Bobbie. Go on Bobbie,

you can say it. Tell her thank you.” Some folks don’t let the other person go until the child has said “thank you.” We spend hours teaching our kids those words and then at age 16, what happens?

Ground Rule # 6 - PRETEND IT’S YOU

Ask your staff to make-believe it’s them walk-ing into the store trying to purchase something. How would they like to be treated? Tell them every cus-tomer will go away thinking one of two ways. Either, “Hey those guys were great” or “Hey, I’m never gonna go back there again.” And if they think that’s not their problem, tell them to think again. Because if the cus-tomers don’t come back, you close up and they’re out of a job. Then it is their problem. Simple.

Ground Rule # 7 - MAKE IT FUN

It’s difficult out there for a lot of folks. Most people want to laugh. It helps make whatever problems they might have a little easier. So if you have the op-portunity to have fun on the job, do it! Make their day!

Consider posting this article in an area employees see often. How about a bulletin board? Put this article in their paycheck. Have them read this aloud. They need to know you are serious about customer service. It’s NOT just a passing fancy.

These are demanding times. Be extra good to your customers. Have a train-ing program for your staff.

You can also con-tact Nancy directly via email [email protected] to discuss your specific needs.

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It has long been known that one of the keys to success in the retail automobile business has been to maximize the opportunities in every one of our profit centers. In the typical new vehicle dealership, these profit centers have been known as, New Vehicle Department, Used Vehicle Department, Finance & Insurance Department, and the Service, Parts and Body Shop departments.

The list of things that we have tried to improve the performance of these departments includes everything from “One Price Selling”, “Half a Car”, “tires for life”, “10,000 miles of free gas”, “special” compensation plans, Matrix pricing, variable labor rates, labor production teams, Standards for Excellence programs, Customer Improvement Teams, independent consultants and a whole host of other attempts to improve the bottom line of the various dealership profit centers.

It is no secret that we are in an economic period that dictates to all of us the necessity to examine every facet of our business. Dealerships across the

country are full of creative, resilient and resourceful people. Many of those people are now taking the time to examine, develop and maximize what I refer to as the Seventh Profit Center…your vehicle inventories.

The vehicle inventories that you have investments in are no different than any other type of investment portfolio. Some investments clearly perform better than others. You have made these investments expecting a return on investment (ROI). It is only natural that when a specific portion of your investment portfolio is producing a significant return, you would want to do more of it. Conversely, when other portions of your investment portfolio are underperforming, you would want to do less of it. The secret to growing your ROI and maximizing this profit center

is to know exactly what each individual investment has done for you in the past, what it is doing for you now and how the investment needs to be re-structured to grow the ROI in the future.

An example of the financial impact to your bottom line that you can achieve in the Seventh Profit Center for your New Vehicle Inventories is as follows:

When you crunch these three simple numbers here is what you will find:Your current day supply of inventory is 95. If you can get your inventory down to a 90-day supply, you will release frozen capital of $148, 275.00 and have a direct savings of $9,267.00 per year. If you reduce your day supply to 75, you would release $1,112,062.00 resulting in

By Scott Dreisbach

# New units sold on an average month 65# New unit inventory for an average month 200Average cost per new unit $29,655Current Floor Plan Interest Rate 6.25%

Financial impact on your bottom linewith Seventh Profit Center

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a direct savings of $69,503.00. Better yet, by operating on a 60-day supply of new vehicles you would free up $2,075,850.00, earning you an interest savings alone of $129,740.00. This is not a pipe dream. Many dealerships are doing this. This does not include the additional gross you will capture by having a quicker turning inventory (the clients I work with typically see an additional gross of $100.00 per unit) over the direct expense savings you will realize by the reduction in policy and delivery expense.

Similar savings can result for your used vehicle department by achieving the target days’ supply of 37.

The three principal ingredients of any good vehicle inventory management system designed to quickly give information to management that

will lead to direct results are: 1) To continually phase in what we need and phase out what we do not based on facts. 2) Make it easy to read, use and understand. 3) Recommend some specific action that needs to be taken. Make decisions based on actual data, not “gut feel”.

To fully develop the potential of this profit center, you need to have several key pieces of information for every single one of your investments. This information does exist in your DMS, regardless of brand. The hard part is to assemble this information, update it everyday, develop and implement action plans, and monitor the results. In other words, you need an automated vehicle inventory management system.

If you would like to see what kind of revenue impact could be achieved

for your store, or would like to learn more about automated vehicle inventory management systems, simply drop me an E mail and I will send you the revenue impact calculator file for you to plug in your own numbers and see for yourself what potential awaits you.

The bottom line is that there is a Seventh Profit Center within your operation, and with a little work, you can significantly add to your current bottom line. In today’s age of outstanding technology, it simply does not make sense to do anything else but make decisions based on actual data, not “gut feel”.

Scott Dreisbach is Vice President of Valuinsight, Inc. You can contact Scott at [email protected] or www.valuinsight.com.

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Students at Decatur High School are get-ting classroom-based hands-on experi-ence that could one day lead to a leg up in the job market.

About half of the 10 seniors graduat-ing this year, who have stayed with the program throughout high school, plan on continuing into a career in the automotive industry, said instructor Luke Thompson.

The program at Decatur just keeps getting better. Through the program, students were already competitive for entry-level jobs at dealerships, private garages, oil-changing service stations and tire-changing service stations.

For the first time, the students in the program have qualified for all four competitions in which they were eligible, even coming close to a national competi-tion run.

The programThere are about 100 students in the

Decatur program, Thompson said. About half of those are returning students, who have had at least one semester of the class. Once students have learned the ba-sics of maintenance and how a car works, they can return to learn about the brake, steering and suspension systems, then the electrical aspects of car repair.

“That’s a huge majority of auto care now,” Thompson said.

The school participates in the SkillsUSA program, which has a national exit exam that students can take to prove they know the industry standards. The program also partners with local commu-nity colleges so students can earn college credit while still in high school, Thomp-son said.

Cars are donated to the program. There are a couple of old police cars, some GM donated cars, donations from Shoreline Community College and some donations from the community.

All that practice really leads up to the competitions.

“It’s the best learning experience,” Thompson said. “It puts them under pres-sure and they have to show their skills.”

This year’s winsThe program’s team of Brandon

Hanline and Daniel Hench won second place at the Washington State AYES Automotive Competition. First place won a trip to the national competition at the New York Auto Show. “Maybe next year,” Thompson said.

In the SkillsUSA Regional Contest for the Puget Sound region, students from Decatur won first, second, third and tenth out of 26 contestants in the automotive maintenance. Also out of 26 contestants, Decatur students received sixth and ninth

place in Automotive Service.

They followed that up with the SkillsUSA State Contest on April 16, where out of 28 contestants in Automo-tive Maintenance, Spencer Swanson took fourth, Taylor Sobus took eighth and Ki-eran Bronson-Doherty took ninth place.

The team was then invited to the Ford/AAA Auto Skills State Contest on May 4, which allows the top 10 teams in the state to compete. The team of Hench and Bronson-Doherty took fifth place.

According to Thompson, the Ford competition is the biggest and most im-portant one in the nation. First place gets a trip to Detroit for the national competi-tion.

Decatur was the only school at the competition that hadn’t been there the year before, Thompson said.

“This is our football game,” Thomp-son said. “This is our way to go head to head with other schools. The guys just love to compete, that’s what’s really neat about it.”

This article was reprinted with expressed per-mission of the Federal Way Mirror Reporter. It was originally published on May 16, 2010.

Decatur High School AYES Program Wins Honors;Students Learn Skills That Pay the BillsBy Kyra Low Federal Way Mirror Reporter

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The daily pressures of business have an insidious way of distracting us from our long term plans. You can easily forget where you want your business to be one year, two years - five years from now. As the dealer, you have to know where you are heading in the short and long terms and communicate those aspira-tions to those around you. It is your leadership, through your actions and words that will either move your dealership toward your goals or away from them.

The last few years have been difficult ones for most dealers. Natu-rally, when one goes into “survival mode”, as it seems many have done recently, standards are lowered and ethical lines can become blurred. When we are surrounded by “doom and gloom” prognostications, we are encouraged to modify the principles that have made our companies strong. A headlong “flight to safety” has killed many a company. Avoid these common errors and you can expect to survive with both your self respect and your enterprise intact.

1. Here’s the best way to destroy a great company. Keep your expecta-tions low and you will achieve only

mediocrity. The assumption that you are “good enough” stifles creative thinking and innovation. If you set your goal at “average” both you and your customers will suffer. If that is the level at which you are satis-fied, you will be lost in the crowd, obscured amongst all the others who have lost their direction and their dreams. When “adequate” is your goal, you will be forced to accept less as your due. In order to hang on to market share, you will have to lower your prices and your expecta-tions. Choose to avoid all risk, no matter how calculated, and you will ultimately tolerate less innovation, less profit, less growth and offer less value to your customers.

2. Can you save your way to profit-ability? If you start slashing people and customer service you enter a self-destructive cycle that erodes your standards. It may work in the very short run, but soon it’s time to lower your standards once again. There just won’t be enough time or people to maintain them. Your staff will feel exploited and under-appre-ciated. Your customers drift away as they lose faith in your ability to deliver. Certainly you should reduce unnecessary expense but you must

By Paul Gillrie

It’s About Attitude

The Gillrie Institute is the only consultant in the industry that does not have a business or financial relationship with any computer vendor. By completely eliminating any conflict of interest, the Institute concentrates only on the needs of its dealer clients and guarantees them the best discounts and terms from the vendors.

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also preserve your equilibrium. Make sure you don’t compromise the superior service that drove customers to your store and kept them coming back. The only sure way to profits over time is incremental revenue. The only sure way to increase revenue is to provide more value to the marketplace.

3. “That’s the way we’ve always done it” leads to the most critical question, “Does it still produce the results we need?” If you remain complacent and stop innovating, you are on the path to self-destruction. Charles Darwin said it best: “It is not the strongest of the species that survive, nor the most intel-ligent, but the one most responsive to change.”

If we learned nothing else from the events of recent years, it should be that everything changes, sometimes faster than we can react. There were times in the last year when things changed for some dealers so fast that in one month they were facing an essentially un-foreseen reality. Those that morphed, altered their actions and their thinking, survived and now will prosper. The ones who looked around, did nothing and felt unjustly put upon, are all gone. Even in the best of times, change is the norm. In the crucible of crisis, it is the only viable strategy. Refuse to change when times command it and your annihilation is assured.

Nor can you just change without sufficient reflection for the sake of change. Understanding, constant vigi-lance and analytical judgment are the keys. Search incessantly for a better way to do business, a more effective com-munication strategy or better response to the needs of your customers and you will surely flourish. Stand still, refuse to transform and you will surely perish.

If this all sounds difficult, don’t despair! Remember that the effect of Darwin’s adage cuts both ways. You rose to your current position and became a dealer (a GM, a CFO, etc.) because your efforts were focused and effective. You are obviously capable and an achiever. You just have to stay involved, figure out what needs to be done and make it happen!

What has this got to do with your DMS computer? Your computer system can be an onerous expense or a construc-tive agent for change and growth. You certainly don’t want to pay for more sys-tem than you need or pay too much for what you do require. Because dealership personnel are busy running the store, it’s easy to let the assessment of the DMS situation slide. The process has, in recent years, become more difficult - and at the same time much more crucial. Most dealers find they need independent professional guidance. Companies that provide this guidance help dealers maxi-mize their investment in their DMS by ensuring that they buy the right system at the right price and under the most favorable terms.

If you would like to receive a free, no obligation analysis of your monthly com-puter costs, including a follow up call to discuss what we’ve found and some sug-gestions to improve efficiency and save money, call us at 800-576-6959 or send us an e-mail at [email protected].

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Global JourneysWith Janet Maines

The Spanish built a presidio (military post) at the northern tip of the California peninsula in 1776 and, at the same time, the Franciscan Fathers established Mission San Francisco de Asis (Mission Dolores). Little more than a century later, on April 18, 1906, a massive earthquake rocked the area around the mission known as the city of San Francisco. The quake, combined with a colossal fire that followed, destroyed much of the city. The city was rebuilt quickly and by 1915 celebrated its rebirth by hosting the Panama-Pacific International Exposition. San Francisco is a survivor of the “boom & bust” gold rush days as well as earthquakes that shook it to its core.

Today San Francisco is 49 square miles of incredible landscape and sightseeing opportunities. There is always something to celebrate in San Francisco. Surrounded on three sides by the Pacific Ocean and San Francisco Bay, San Francisco is built on 43 hills. Its setting is superb – at the top of a narrow peninsula rimmed by a bay and an ocean. The city, the hub of the Greater Bay area, has a population of 845,559, which makes it the second most densely populated American city after New York. San Francisco is blessed with a temperate marine climate and enjoys mild weather year-round.

The last time I visited San Francisco, I stayed at the world-renown Fairmont San Francisco Hotel on the top of

Nob Hill. Not only is the view spectacular but you’re only a cable car away from the center of attractions - Union Square (named for the pro-Union rallies held there during the Civil War), Fisherman’s Wharf, and Ghirardelli Square, home to a chocolate sweet shop and retail outlet. The hotel dates back to the early 1900s and is a favorite place for visitors & locals. The Tonga Room & Hurricane Bar offering a tropical and

festive Polynesian décor complete with thatched tiki huts, a lagoon with a ship floating in the middle (the ship doubles as a bandstand) palm trees and a tropical storm every 20 minutes. The menu offers exceptional Pacific Rim Asian Cuisine. Be sure to try the Mai Tai, recognized as the best in the City!

The California Treat

San Francisco

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San Francisco’s charm is undeniable. It’s a melting pot of ethnic diversity, a stronghold of tolerance. It’s photogenic, a Kodak moment waiting at every corner. Its architectural gems range from Painted Ladies – Victorian & Edwardian houses painted in three or more colors, to hip and contemporary buildings such as the Museum of Modern & Contemporary Art. Its icons are instantly recognizable – a golden bridge wrapped in fog; a cable car cresting a steep hill, passengers clinging to its sides; a twisting street zigzagged with cars.

San Francisco’s ethnic neighborhoods like the Hispanic Mission District and Chinatown are true communities dating back to the 1850s. There is much to see and taste by exploring these treasured neighborhoods.

Culinary adventures for the foodie traveler include hands-on group cooking class/tour combos in Chinatown, Boudin Bakery tours at the flagship bakery at Fisherman’s Wharf, the Ferry Building Marketplace and the Farmer’s markets and gourmet street food. Chinatown is the largest Chinese settlement outside of Asia and is great for experiencing tasting tours and finding unique treasures. San Francisco is full of delicious food to suit every taste and budget. And for coffee junkies, Blue Bottle Coffee Company shouldn’t be missed!

Eco-Friendly sightseeing trip ideas include the Golden Gate Park housing the Japanese Tea Garden – the oldest public Japanese Garden in the United States, Muir Woods which is 11 miles north of the Golden Gate Bridge, a two-wheeled touring of the city, or simply a walk along the breathtaking coastline.

And for those seeking “greener” accommodations, look towards the Joie de Vivre hotel chain. Joie de Vivre is California’s largest boutique hotel collection and each has a unique style with its own amenities.

Historical highlights produce an insight into San Francisco’s past and include the Cable Car & Railway Museums; the infamous Alcatraz Island and the Barbary Coast Trail which connects many of the city’s most important historical sites.

Experiential tourism ideas focus on the San Francisco Botanical Garden, Boating Excursions, and AT&T Park Tours while voluntourism ideas range from trail work to feeding the hungry.

There are unlimited sightseeing opportunities for families including the Aquarium of the Bay, San Francisco Zoo, Exploratorium, the museum of art, science and human perception and Zeum, a hands-on art & technology Children’s Museum. (from top) China Town; Lombard Street; San Francisco’s

famous Cable Cars

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San Francisco is a great girls’ getaway city offering a wide variety of fun choices including shopping at Union Square, Wine Country tours just north of the city, evenings out with cocktails & dessert and visits to art galleries.

A “culture & cocktails” phenomenon has created a whole new nightlife scene in San Francisco; namely, Nights at museums and “First Thursdays” when many downtown art galleries are open late for casual receptions. San Francisco has some of the nation’s best museums including the deYoung, the Yerba Buena Arts Center, the Modern Jewish Museum and San Francisco Museum of Modern Art which recently celebrated its 75th Birthday.

Ultimately, major points of interest to try to include on a sightseeing excursion include Candlestick Park, home of the San Francisco 49ers , China Beach, The Embarcadero Center for upscale shopping and restaurants, Fisherman’s Wharf, 49-mile Scenic Drive, Grace Cathedral, Haight-Ashbury famous for vintage clothes, funky jewelry & books, records and other memorabilia associated with the flower power of the 1960’s, Little Saigon, Nob Hill, Russian Hill, a residential neighborhood with pockets of restaurants and shops and most famous for Lombard Street – a steep one-block section made up of tight hairpin turns, San Francisco-Bay Bridge, Telegraph Hill/Coit Tower, and Union Street – great shopping, superb dining, exquisite pampering and exciting nightlife.

Everyone has their own list of favorite places to go & things to do in San Francisco. One thing is certain, though, it’s very easy to leave your heart in the City by the Bay.

About JanetFor more than 20 years Janet has been handling travel arrangements for the auto industry. She specializes in corporate meetings, leisure vacations and cruises, group conventions and incentive travel. For more information about this article or to have Janet help you plan your next get away, contact Janet Maines & Associates, A Full Service Travel Agency, 206-782-0576. Toll free: 866-294-8747. Email: [email protected] or on the web at www.jmtravelco.com.

(from top) San Francisco Mission Delores; Palace of Fine Arts

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• Despite a reputation for vigor, Teddy Roosevelt needed nitroglycerin pills for his heart.• Ayatollah Khomeini’s real name was Ruholla Moussavi.• No only children have ever been elected president of the United States.• The first ever income tax was levied in England to fund a war against Napolean.• Drafts of the Declaration of Independence were written on hemp paper.• Josef Stalin was studying to become a Russian Orthodox priest when he found Communism.• Ho Chi Minh literally means “one who enlightens.”• Twenty-six of the elected U.S. Presidents have been lawyers.• There really was a King Macbeth. He ruled Scotland from 1040 to 1057.• Louis XIV of France was an avid ballet dancer in his youth.• Lady Nancy Astor, the first woman in the British House of Commons was born in Virginia.• Twenty-eight U.S. States and four Canadian provinces have names with Native American origins.• Women in Switzerland didn’t get to vote until 1971.• The famous lover Giovanni Casanova ended his life working as a librarian.• Israeli Prime Minister Golda Meir grew up in Milwaukee.• Woodrow Wilson couldn’t read until he was nine, but became the only president with a Ph.D.• David Livingston wasn’t actually lost. He wasn’t interested in being found.• Magellan was not the first person to sail around the world; he was killed part way through.• England’s Stonehenge is 1,500 years older than Rome’s Coliseum.• The name of the Wright Brother’s first plane was Bird of Prey.

Now how about some Lincolniana!

Besides being the first president to sport a beard, Lincoln was also the tallest U.S. president at 6 foot 4 inches. Lincoln was the first president to pass an income tax – it was three percent on incomes over $600. Lincoln once paid $2,600 for a string of pearls and matching earrings at Tiffany’s for his beloved wife, Mary. Lincoln regarded patent laws as one of the three most important developments in history, right next to the discovery of America and the perfecting of the print press.

What’s that you say about Christopher Columbus - Hmm!

After his 1492 voyage, Columbus returned to Spain a celebrity. But by the time he’d completed his fourth voyage (Yes! He did more than one), he’d been forgotten. In 1502, he spent the year seeking the Isthmus of Panama; Columbus thought it might prove to be a way to the Pacific (Smart boy!). By the end of the year, his four ships were so badly damaged that he was forced to run them aground before

Coffee Break

Historical Facts That Won’tChange Your Day

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they sank. It took him another year to get a ship that would take him home to Spain. He returned to Spain sick and pen-niless. Back in 1492 Queen Isabella and King Ferdinand had promised that Columbus would share in the riches he found in the New World. He headed for the Spanish court in Toledo, but only got as far as Seville. He was too ill to go on. Soon after that, Queen Isabella died. Columbus wrote to Ferdinand, but the king didn’t reply. So the great explorer struggled out of his sickbed and went to Toledo for some “face time” with the king. Ferdinand refused to deliver on his promises. Columbus died at home in bed in 1506. Columbus’ oldest son, Diego, succeeded where his father hadn’t. He was eventually appointed Viceroy of the Indies, married one of Ferdinand’s nieces, and from all accounts, lived happily – and financially comfortably – ever after.

Little Jack Horner – You won’t believe this!

Turns out that Little Jack wasn’t a very good boy. He was really a bureaucrat who proved that crime does pay.

Little Jack Horner sat in the cornerEating his Christmas pie.He stuck in a thumb And pulled out a plumAnd said, “What a good boy am I.”

Around 1540, Jack Horner was a steward who was sent to deliver deeds of church properties to King Henry VIII. The deeds were hidden inside a Christmas pie to foil highway robbers. According to the legend, one property never made it to the king. Horner stole a deed out of the pie and kept it for himself. The “plum” that Horner pulled out of the pie was the deed to the estate of Mells Manor. Horner’s descendants lived on the property for generations. They claimed the verses were false and that Mells Manor was purchased legitimately.

If you liked these tasty tidbits, then you will love the book they came from – “Uncle John’s Bathroom Reader Plunges Into History,” published by Portable Press, fifth Printing 2002 ISBN: 1-57145-697-X. You can get your own copy from your favorite bookstore and enjoy it at your leisure It is a great book!

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