autosuccess aug08

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August 2008

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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.

address:3834 Taylorsville Rd.Building A, Ste. 1BLouisville Kentucky 40220

phone / fax:877.818.6620 / 502.588.3170

web:AutoSuccessOnline.comAutoSuccessPodcast.com

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BUILDING YOUR BUSINESS THROUGH REFERRALS

ARE YOU GOOD ENOUGH FOR YOUR JOB?Social Networking Has Changed the Requirements for All Salespeople

StephenR.Covey

TomHopkins

FranTaylor

MikeSpadafore

DalePollak

IT’S EASIER TO MAKE MONEY NOWTHAN EVER BEFORE

JeffKershner

JoeCala

PaulD.Cummings

VEHICLE INVENTORY OR MARKET’S DAY SUPPLY

ChuckPatton& TriciaPatton

INTERNET SALES 20 GROUP VIII

LauraNoonan

D.J.Harrington

SeanV.Bradley

DarrenHaygood

DIAMOND AUTO DRIVES TRAFFIC AND CAPTURES NEW SALES WITH VIRTUAL DEALERSHIP AND UPDATED

INTERNET STRATEGIES

FIRST, SOME REALLY BAD NEWS

JohnBrentlinger

FIVE ROCK-STAR WAYS TO BRAND YOUR DEALER’S INTERNET SALES DEPARTMENT

JimAdams

AnjanJ.Shah

SERVICE: SERVICE MARKETING ANDBUILDING A BRAND

MarcSmithMANAGERS, GET IN THE DEAL EARLYAND SELL MORE CARS

PART OF LIFE’S JOURNEY

CHANGING THE DNA OF THE LEAD MARKETPLACEWith Premier Lead Exchange

DaveHein

STOP THE BLEEDINGFour Fail-Safe Solutions That Will Limit Turnover

THE E3 FORMULA(Evaluation + Education = Elevation)

8TH HABIT LEADERSHIPPart 1

OH NO! NOT AN INTERNET CUSTOMERRedefi ning Today’s Internet Strategies and Immediately Improving Our Results

MANAGEMENT 101:Knowledge is Only a Rumor Unless it Changes Behavior

LEAD NURTUREThe Art of Generating, Capturing and Selling

SteveBrazillIT’S SERIOUS MONEY, GET SERIOUSABOUT EXECUTING

DanPageDON’T BUY ANOTHER INTERNET LEADUNTIL YOU READ THIS

MarkTewartDON’T ACCEPT THE BIG BAD ECONOMY

8

www.autosuccessonline.com

TomHopkins

sale

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STS

BUILDING YOUR BUSINESS THROUGH REFERRALSHow much of your current business is

based on referrals? If it’s anything less than 50 percent, you’re missing out on a lot of sales.

Too many salespeople avoid asking for referrals for several reasons:

• They just haven’t made it a natural part of their selling process.

• They’ve asked a few times, not gotten any, and stopped asking.

• They aren’t comfortable asking. In other words, they don’t know the right way to do it that the pros have mastered.

If you fall into any of those categories, let’s change your thinking and increase the number of clients you serve the easy way — through referrals.

To get more referrals than ever before, learn to set the stage early in your presentation. Once you start to feel your current clients warm up to you, say these words, “John, Mary, like any good business, ours grows primarily through referrals. If we are fortunate to satisfy your needs with a new vehicle and truly make you happy with our service and fi nancing, would you have any objection to referring your friends or relatives to us?”

At this point of the sale, you’re a nice guy or gal. They’re excited about the potential of owning. You’ve just talked with them about the “after purchase” timeframe when they’re happy owners of a new vehicle. They’re not likely to say “no” if they’re truly qualifi ed and planning to make a purchase. Once you get their agreement, drop the subject and proceed with your presentation and close the sale.

After the paperwork for the purchase is approved by your new happy clients, bring up the topic of referrals again. “John and Mary, do you recall me asking you awhile ago about referring others to us if we were able to satisfy your needs? Well, now would be a good time to get that done. Who are the fi rst people you’ll be showing your new car to?”

This is Step 1 in getting referrals. Don’t ask “do you know anyone…?” That question makes a lot of people’s minds go blank. Ask very specifi cally who they’ll show the car to. Their minds will picture those people right away. Then, ask about people they know in other groups they may have mentioned such as folks they volunteer with, others they may carpool with, parents of their kids’ friends, relatives and neighbors. Don’t grill them. Just ask about a few of these groups in a conversational tone. With each name they give you, ask a couple of non-threatening questions about those folks and why they came to mind. It could very well be that those people had mentioned needing a new vehicle as well. Or, they could have an older model of the same car you just sold.

Once you have a little information about those folks, ask the best way for you to contact them. Then, promise your new clients that you will contact these people.

Here are the steps in outline form for you to memorize:1. Isolate faces for your customers to

envision.2. Write referrals’ names on your notes.3. Ask qualifying questions about the

referrals.4. Ask for the referrals’ contact

information.

5. Ask the customer to call and introduce you to the referral.

6. If the customer shows nervousness or refuses to call, ask if you can use the customer’s name when you contact the referral.

Don’t fret over Step 5. Most untrained salespeople would stop right there and not even try the strategy. I’ll tell you right now, there’s a very good reason for Step 5. It’s setting the stage for the next step. Few people will be comfortable calling to introduce you, a relative stranger, to their friends or relatives. What happens though is they’ll be so relieved you offer them Step 6 that they’ll jump on it. If you had gone directly from Step 4 to Step 6, you may not have gotten the same response.

I usually lead them into this by saying, “Thanks so much for the referrals, John. I know since you are so excited about this new opportunity, you are probably chomping at the bit to share it with your family and friends. Why don’t you start now by calling Jim and sharing your good news with him? Then we can work on arranging a time for him to come into the dealership.”

If your client is fi ne with that, then good, start dialing. But if they hesitate or act uncomfortable, take the pressure off immediately. Some people may not know the referral all that well, or they may feel uncomfortable making the call. If this is the case, let them know you understand their hesitation, but ask if you could use their names when you contact the people they referred you to. Most people will be relieved to be let off the hot seat and be more than happy to give you permission to do so.

Hopefully, you’ll understand the power of this strategy and start applying it with your very next client. What have you got to lose? Not much. On the other hand, you stand to gain a tremendous amount of referral business.

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].

“...let’s change your thinking and increase the number of clients you serve the easy way — through referrals.”

10


sale

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STSPaulD.Cummings

Why is turnover such a major issue

for the sales departments in our industry? It’s not like the problem is a new issue on the horizon. The brutal truth is that this issue has been a topic of discussion for the entirety of my 24-year-career as a teacher. Dealerships all over the world still struggle with turnover, especially in the sales side of their business. Turnover - the loss of talent - is a hidden activity-based cost that is more expensive than people want to accept. There is no line on the fi nancial statement that measures the expense, but I promise it is costing you a fortune. The good news is there are four solutions that will limit your turnover and increase your sales department profi tability.

Our current approach to the problem is fl awed from almost every angle. As an industry, our tendency is to recruit fast, train seldom, never coach and fi re slow. Let me pull the curtain back on this game plan: It does not work. The days of hiring in groups and throwing the “new hires” on the fl oor to see who sticks are gone. Letting poorly prepared people practice on real customers is insanely ineffective and expensive. This approach is a “band aid on a cut” mentality at best. Have you really solved anything by plugging a group of new people into the same fl awed approach? The answer is “no.”

Recruit Slower to Get Better RecruitsHow do you get a job in automotive sales? Show up for the interview. If it is really that easy to get a position in sales at your dealership, you are approaching the recruiting process incorrectly. If the sales position is so easily fi lled, what does it say about the value of the position? What is your interview process? How many

people interview the potential candidates? Have you created a

“talent indicator” standards evaluation process? What

are your scoring standards for hiring?

The Remedy: The fact is the more diffi cult you make the hiring process, the higher quality recruit you will attract and ultimately hire. You must slow down the process and create a defi ned recruiting plan. In our leadership programs, we teach dealers and managers a new recruiting process that serves to limit “mis-hires” and improve fi nal candidate selection. Raise your recruiting standards and never settle because you are short of people.

Create a 12-Week CampaignWhat currently happens at your dealership when a new group of sales candidates show up for their new career in sales? What strategies do you have in place that will allow you to properly direct their career path from Day One in a successful manner? Is there a “90-day process plan” at your dealership with check points along the way? Does each new hire have a defi ned game plan for growth, targeted to their individual point of need? The odds are you just said “no.” The solution requires hard work and daily diligence, but the results are amazing.

The Remedy: You must create a 12-week education program designed to enhance the individual’s opportunity for success. Each week you must assign specifi c learning objectives and hold the new recruits responsible for the successful completion of those objectives. The only way to advance to Week Two is to complete the assignments from Week One and the same should be true of each subsequent week during the fi rst 90 days. Let me share a business fact with you: A sales professional is a person who works on themselves every day. Individuals who prove themselves unwilling, early in their career, to work on their personal development will not enhance your dealership or team.

The 20 Minute Daily SolutionHow many days a week do you teach and educate your people? What does your on-going training program require of the student? Is the program pre-planned, well prepared and powerfully delivered? Is the content assigned based on the individual needs of students? Are you a learning organization from top to bottom? Do you coach around the processes you have taught? Are you providing guidance and feedback regarding each student’s progress or lack thereof? If not, there is a solution.

The Remedy: Schedule 20-minute-a-day practice, drill and rehearse sessions designed to develop and improve the knowledge, attitude, skills and habits of your recruits. Each daily session should have specifi c content designed to close a perceived gap. The Rules: Start and end on time, don’t combine the teaching sessions with a sales meeting, have fun and teach like there is no tomorrow.

Stay True To Your StandardsThe brutal fact is that we hang on to people far too long who are not a fi t for our organization. There are many reasons why we make the mistake. The key is to commit today to stop making this costly mistake.

The Remedy: When you have provided the person every opportunity to be successful and they simply don’t have the knowledge or possess the skills, demonstrate the attitude or possess the winning habits required to be successful, don’t be hesitant in your decision. The key is to support your team and fi re rapidly and stop the bleeding.

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].

STOP THE BLEEDINGFour Fail-Safe Solutions That Will Limit Turnover

See how vAuto’s Live Market View can help you thrive in any market situation.

Call 888-536-4086 or visit www.vAuto.com/realtime/autosuccess for a free demo today!

Why? You could be using real-time information. With the wide fluctuations in gas

prices and economic conditions affecting used vehicle values on a daily basis, there is no better way to make your

stocking, valuation and pricing decisions than with vAuto’s Live Market View.

Are You Still TradingBased on Historical Data?

featu

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MikeSpadafore

Changingthe

DNAof the

Lead Marketplace With PremierLead Exchange

DTX is a registered trademark of Detroit Trading Company.

Every now and then, there is a change that really matters — something that comes along and radically impacts the way we live, work or play.

The Premier Lead Exchange is the something that is going to dramatically improve the way you acquire Internet leads and increase the number of vehicles you sell. That broken process we call the “Lead Marketplace” will never be the same.

Dealers obtain their leads from three primary sources — third-party lead providers, OEMs and the dealer’s own Web site. The majority of purchased leads come from the third-party lead providers and some OEMs. The problem is that dealers purchase the leads as if every lead is of the same quality, with the same likelihood to close — this simply is not the case. The Premier Lead Exchange will enable dealers to buy the best leads in the dealer’s market area, and pay a price based on the lead’s likelihood to close.

To make this a reality, Detroit Trading Company and R. L. Polk & Co. have combined their core competencies to deliver an effi cient, transparent and buyer/seller friendly lead exchange integrated with highly predictive lead scoring. Together, these competencies create the Premier Lead Exchange, which is certain to change the way automotive leads are bought and sold.

How It WorksAdvanced exchange technology enables lead generators and wholesalers — the Sellers — to present their leads on the exchange for sale to any of the exchange’s buyers. Sellers are able to specify a minimum price for which they are willing to sell their leads. Lead consolidators, OEMs and dealers themselves — the Buyers — are able to review all the leads presented on the exchange, specify a price the Buyer is willing to pay for a given lead, and then “bid” on the lead in a real-time auction process. The Buyer who bids the highest price for a lead — which is greater than the Seller’s minimum sales price — receives the lead. This highly effi cient “market driven” process ensures that Sellers and Buyers are respectively

receiving and paying fair market value for all of the leads transacted through the exchange.

Polk Lead Scoring, based on automotive intelligence and advanced analytics, allows a “score” to be placed on every lead predicting how likely the lead is to purchase a new or used vehicle. The score is a ranking from 1 to 10, with a 10 being the most likely to purchase. The Polk Score, which has been validated in the industry to truly predict likelihood to purchase, is currently in use at a number of large dealer organizations, and is generating considerable buzz in the marketplace.

Combining the market-driven effi ciency of the exchange with advanced lead scoring

Now dealers can buy the best leads in the dealer’s market area and pay a variable price based on the lead’s likelihood to close.

provides the automotive

lead marketplace with its fi rst real lead

purchasing innovation in more than a decade.

All participants — lead generators, lead consolidators,

OEMs, Dealer Groups and individual dealers — will derive

signifi cant benefi t.

Buyer Benefi tsAs a Buyer there are really two key benefi ts:

• Buy the 10’s• Pay what the lead is worth

An analysis of more than 2.5 million leads has clearly demonstrated that all leads are not equal relative to which leads are most likely to close. In fact, a lead scoring statistical model used to score a typical group of leads offered through the Premier Lead Exchange will show signifi cant differentiation — the leads scored a “10” being fi ve times as likely to close as the leads scored a “1”. Said another way, for each “10” that a dealer follows up with and closes, that dealer would have to follow up with fi ve “1’s” just to make a sale. Five times the labor for the same result. Dealers who are able to leverage this kind of intelligence when it comes to purchasing leads will have a signifi cant advantage over their competitors.

The Premier Lead Exchange, at the very least, ensures that every consolidator, OEM and dealer can identify and attempt to “Buy the 10’s” in their market area — again, a huge competitive advantage. And, of course, there is no need to stop there. A Buyer on the Premier Lead Exchange should purchase other leads in addition to the 10’s — the 9’s, 8’s, 7s, and 6’s — which close at a proportionally high rate, as well. Because the Premier Lead Exchange allows the Buyer to bid and pay market-driven prices — prices that are essentially established based on the highly predictive buy rate score — the Buyer will pay the appropriate price for 1’s through 5’s. Again — paying what the lead is worth, rather than some arbitrary price specifi ed by a lead provider working outside of the Premier Lead Exchange.

Seller Benefi tsIn order for any lead exchange to ultimately serve the marketplace, it must provide benefi t to both Buyers and Sellers. The exchange provides benefi t on behalf of Sellers, in that the exchange ensures a fair, market-driven price for a Seller’s high-quality leads. The current lead marketplace

business model is ineffi cient and does not help the Seller or the Buyer. The Seller will present their leads to the marketplace in what is typically termed a “waterfall” method. The lead is presented to the Seller’s highest-priority Buyer, and, if not purchased, the lead “falls” down to the Seller’s next highest-priority Buyer. This continues on down the Seller’s specifi c waterfall of Buyers until the lead is either purchased or is simply left unsold – the latter of which results in an intolerably bad consumer experience refl ecting poorly on lead generators, OEMs and associated dealerships.

A Buyer’s priority in a Seller’s waterfall is based on various factors, but generally is fi xed — independent of the likelihood for that lead to close (as indicated by the score), current market demand for the particular type of lead, or the Buyer’s specifi c needs. The Premier Lead Exchange enables all of these factors to come into play during the lead transaction process — this ensures that the Seller will receive a premium for high-quality leads, while still providing a fair price to the Buyer. In fact, every Seller should automatically present all of their leads into the Premier Lead Exchange with it positioned at the very top of the Seller’s waterfall. In this way, the Seller’s best leads will sell at a fair, albeit premium, market-value price, and any leads that do not sell will move down the waterfall into the standard lead marketplace. Those leads will then be purchased by lead consolidators, OEMs and dealers who are not participating in the Premier Lead Exchange for prices not accounting for a lead’s likelihood to close.

Direct Dealer ImpactInternet leads have been steadily increasing in importance to dealers for the past 10 years. With more than 85 percent of consumers using the Web to research their next vehicle purchase — and the majority

of those consumers generating one or more Internet leads — dealers have to make sure they are closely managing this key aspect of their business. In the current economic downturn, Internet leads have become the new “showroom up” and arguably the most cost-effective and critical aspect of the dealership’s marketing and sales activity. Traditionally, dealers have simply tried to obtain as many leads as possible. Some dealerships are also concerned with the quality of the lead, where quality has a limited defi nition based on contact information completeness and accuracy. The most advanced dealerships have begun to try and determine what the optimal number of leads is — too many and the salesperson is overwhelmed, and actually closes less; too few, and the number of Internet deals decreases.

This exchange solves these issues by letting the dealer purchase the best leads in his or her area and move as far into the balance of the leads as the dealership can handle. Most importantly, the dealer can leverage the exchange to make sure that every high-scoring, highly likely to close (fi ve times more likely) lead for the dealer’s brands and in the dealer’s area is purchased by that dealer. Stated more simply, there is no way — especially in this tough market — that a dealer should let a “10” go through the Premier Lead Exchange without making a bid for that lead. It is really very simple: It’s either you or your competition — who is it going to be?

Mike Spadafore is the director of global strategy at R. L. Polk & Co.

For more information, contact Jeff Raab with DTX. at 866.922.0617, or Brad Korner with R. L. Polk & Co. at 866.922.0667. You can also e-mail them at [email protected].

For years, we have learned from our

20 Groups and practical experience that word of mouth (referrals) is the most effective way to build business. Most dealers today grew up on the sales fl oor, working with customers and building long-term relationships that were centered on providing ongoing customer service to those customers as they drove their car, which lead to more business from those customers and their friends.

Today, most salespeople are focused on the here and now. They are looking 10 feet in front of themselves, not four years down the road. As the result, many people in a sales role today see every opportunity to do business as a conquest rather than an opportunity to build long-term sales increases. In viewing customers as conquests, there is little or no effort spent on building rapport and making friends with

the customers. When they walk out the door, the sales person is off looking for the next conquest, not working their unsold (or sold) customer lists to further build relationships and ask for more opportunities.

The introduction of social networking in the automotive space is forcing a change to all of this. Like it or not, customers today are going online and leaving comments in blogs, video sites and ratings sites about their experience with the dealership and the people they work with in those dealerships. That’s right; they are leaving comments about every member of your customer service team (front-line sales and service staff). They are doing this to help other in-market buyers of vehicles and service fi nd the employees of a dealership that are going to deliver an exceptional experience for them.

This is great news for our industry. While some front-line staff within a dealership may see this as a threat, it is a great opportunity for every dealership today. Your front-line staff members are (or should be) customer service professionals. Their job is to engage customers and help them to make the best decision to meet their individual needs. In doing this, they create loyal customers who want to tell everyone they know about the great experience they had. Today, those customers are going online and putting these comments in front of the entire market to

see, and it costs you nothing.

When someone has a less-than-excellent experience with a staff member at your dealership, it is that member’s responsibility to fi x it and make the customer completely satisfi ed. If they do not, your staff member (and your dealership) both have a negative mark on the Internet for anyone to view. Now, one negative comment here and there is not going hurt a business; in fact, it often helps in that it shows customers what they already know, everyone makes mistakes. In the instance where a member of your team regularly receives negative remarks, and does nothing to fi x the problems for the customers, however, in-market shoppers will see that this is a person to avoid.

If customers think poorly about someone that is employed in your business, what do they think about the business that would keep that person on-staff? Likewise, when a dealership works to insure they have staff members who consistently receive glowing reviews from customers, it tells the market that this is a dealership worthy of more business and therefore more referrals walk into the showroom asking for staff by name.

As a management tool, these dealership-rating services that rate individual staff can be an invaluable tool. They help to identify customer service issues long before the CSI survey is sent out, they can show in-touch managers and coaches trends of successful people and quickly identify people whose actions can negatively affect the reputation (and the revenue stream) of the dealership.

In a day where manufacturers are looking to reduce the number of retailers in every market, it is likely that customers will strongly infl uence the decision on which operators make the cut by reviewing the scores of dealerships, which will demonstrate the longevity of businesses in today’s world of user-generated content and social media.

Dave Hein is the CEO of CF Media Group, Inc and co-founder of CarFolks.com. He can be contacted at 866.893.9428, or by e-mail at [email protected].

DaveHein

ARE YOU GOOD ENOUGH FOR YOUR JOB?Social Networking Has Changed the Requirements for All Salespeople

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marketing

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MS

866-964-6397 imnLoyaltyDriver.com

YOU HAVE CUSTOMERSAND PROSPECTS.

WE HELP YOU GET A LOT MORE MILEAGE

OUT OF THEM.

Let’s roll.

16


JoeCala

THE E3 FORMULA(Evaluation + Education = Elevation)

leadership

solu

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LS

EvaluationTo “evaluate”

means to ascertain or fi x the value or worth of something - to examine and judge carefully. Another word for “evaluate” is “appraise.” Now there’s a word I’m familiar with. In the car industry, we use this word when we appraise or evaluate a customer’s trade. What are we doing when we do this? Besides making our customers upset about what we appraise their trade for, we are examining, evaluating and looking over the trade carefully to see the condition, mileage and real-time value of it. The appraisal shows us the trade as it is valued in the condition we see it. Now, if the trade has a dent in one door, is over mileage and has a cracked bumper, the value of the trade will decrease. There will be deductions made for each area. But if the bumper is not cracked, the mileage is under by 5,000 miles and there are no dents at all on the vehicle, the trade will be valued higher. The appraisal reveals to the one evaluating it — and the one who owns it — not only the actual value of it in the condition it’s in now, but also the reasons why it’s worth what it’s worth.

We do appraisals for people every day, but what about ourselves? Now, you might be thinking, “I don’t need to do an appraisal on my car because I’m not trading it in.” But I’m not talking about appraising your car. I’m talking about you. Have you done an appraisal on yourself lately? Have you pulled out the “self appraisal” and took time to evaluate yourself? What about the “life appraisal”? Have you taken time to evaluate, examine and look over your life to see the condition, mileage and real-time value of it? Have we been so busy working and evaluating things for everybody else that we’ve let ourselves fall apart? Take the time to evaluate yourself today so you can fi x and improve the areas that have caused you to lose self-value in your life. Here is a sample “self appraisal” for you to do right now. (see chart)

This is just a sample, but I trust you get the idea of how you can use this to evaluate your present reality, whatever it may be. There are many other types of appraisals you can put together. Here are a few more

to consider:• Leadership Appraisal• Work Appraisal• Emotional Appraisal• Physical Appraisal• Spiritual Appraisal• Social Appraisal • Management Appraisal• Sales Appraisal

Now, if we were to just do an evaluation and leave it at that than we’d all be depressed and in pretty bad shape. However, the evaluation is necessary to expose to us our current condition right now so we can fi x, correct and adjust the value of what we see. This is where education comes in.

EducationTo “educate” means to provide with knowledge or training in a particular area or for a particular purpose. Once we have done our evaluation, now we can fi x, correct and adjust the necessary areas we have discovered. “The great aim of education is not knowledge but action.”

— Herbert Spencer

Once we receive the knowledge and information, we are to then act

correspondingly on the understood knowledge to make the necessary changes found in our evaluation. This is true education. Knowledge + Corresponding Action = Education. When we are truly educated in an area, we are no longer ignorant in that area. We have the know-how to fi x, change and adjust ourselves into a higher place than where we were without that education. This is called elevation.

ElevationTo “elevate” is to move or rise to a higher place or position; it is to lift up. To rise to a higher state, rank or offi ce; exalt; promote. The end result of Evaluation + Education = Elevation. This is always the result of someone who practices these principles in any area of life. Whether it is the workplace, the sale, the close, life, leadership, management, relationships or anything else, this formula will hold true.

As you focus on making it a habit to evaluate and educate yourself in every area of life, you will experience being elevated to new positions, promotions and higher levels of responsibility.

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].

Am I happy with the overall condition of myself?

Yes No

Is there any exterior damage?

Yes No

Is there any interior damage?

Yes No

Do I need any bodywork?

Yes No

Have I been in any accidents?

Yes No

If “no,” state why:

If “yes,” list defects:

If “yes,” list areas affected and the cause of damage:

If “yes,” list areas:

If “yes,” list areas:

“Only half of U.S. workers say they trust their leadership...”

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StephenR.Covey

8TH HABIT LEADERSHIPPart 1

leadership

solu

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LS

I don’t know how much money has

been spent in our society on what is called “leadership development,” but it must be in the billions. Few organizations lack a leadership-training program, whether it be a full curriculum or a course at a local college. Succession programs often include leadership training that lasts for years. However, we see no real breakthrough in leadership effectiveness. For example:

• Only about 13 percent of U.S. public companies consistently met announced performance expectations in the last decade, according to Profi t From the Core by C. Zook & J. Allen (Harvard Business School Press, 2001).

• Only half of U.S. workers say they trust their leadership, according to FranklinCovey’s xQ study of 12,000 U.S. workers in 2003.

• Only 57 percent of all Americans trust corporate leaders to be honest, according to The Support Economy by S. Zuboff & J. Maxim (Viking, 2002).

• Two out of three Europeans say they distrust the leaders of corporations, according to an April 2002 Eurobarometer Survey of the 15 EU members states.

In an era when so much leadership education goes on, why is there no outbreak of great performance? Why are

more and more people so disillusioned with their leaders? Why is the corporation the least-trusted entity in our society?

Clearly, we need a new model of leadership. We need leaders who can be trusted to get results. Wherever you fi nd lasting trust, you will fi nd trustworthiness. Trustworthiness, in turn, is the product of a simple determination to keep one’s promises. In its essence, trust is earned only by people who deliver.

Most companies struggle to keep their promises. A study of corporate performance during the 1990s by Bain Consulting revealed that most companies over-promise and under-deliver. “Only about one company in eight, or 13 percent, achieved sustained and profi table growth over a decade that many would rank as among the best for the world economy…More than 90 percent of the companies examined aimed at returns well in excess of those level” (Zook and Allen, italics mine).

We need leaders people want to follow. We have long since transitioned from the Industrial Age, when workers did what they were told, to the Age of Knowledge Work, where workers essentially volunteer their efforts and give loyalty to leaders they trust. But too many leaders are still mentally in the Industrial Age. Many of our management assumptions are part of that mentality:

• You have to control and manage people.

• People are an expense, while machines and buildings are assets.

• The “carrot and stick” motivational philosophy still applies.

I have spoken to hundreds of audiences worldwide, and I always ask how many agree with the following statement: “The majority of people in my organization possess far more talent, intelligence, capability and creativity than their present jobs require or even allow.” Virtually every hand goes up.

What kind of leaders will people volunteer to follow in the 21st century? Will it be those who continue to manage bureaucracies, or those who unleash the talent, intelligence, capability and creativity of the people?

We need great leaders. What we will need are leaders who practice what I call “The 8th Habit.” These are the truly great leaders whom people willingly follow and who can be relied on to produce great results.

Some time ago I wrote a book called The 7 Habits of Highly Effective People, which outlined the principles and practices that effective people live by. Now I have come to believe that there is an eighth habit, practiced by those who are not only effective, but move on to true greatness. What is the eighth habit? Find your voice and help others fi nd theirs.

Everyone has unique gifts, talents and capabilities that are only slightly leveraged in most organizations. Finding your voice means bridging the painful gap between possessing great potential and actually realizing a life of greatness and contribution. Helping others fi nd their voices is the key to leadership success.

Originally ran in CLO Magazine

Stephen R. Covey, Ph.D., is co-founder of FranklinCovey, and is the author of the best-selling The 7 Habits of Highly Effective People. He can be contacted at 866.892.6363, or by e-mail [email protected].

You Are Guaranteed to IncreaseYour Bottom Line in One Year by$250,000 or I’ll Pay You $10,000!

Hi! My name is Mark Tewart. I am a re-nowned expert in automotive sales, sales marketing and sales management. Many of you reading this may have heard me speak at seminars, state association meet-ings, NADA or NIADA conventions. You may have read my articles in AutoSuccessor other magazines or seen my shows on Automotive Satellite Training Network.

Whether you know me or not, you may be wondering what allows me to be able to make such an outrageous claim. The answer is simple. I have accomplished this for my clients every time I have tried without fail. If a client follows my fool-proof and proven methods, the results are as predictable as the sun coming up every day. That may sound arrogant to some of you, but to me and my select clients it’s just reality.

Every year, I am bombarded with deal-ers who ask me to help improve their sales and profi ts. I reject most of them. I only choose a few each year to work with on such a large scale. There are a few reasons why I carefully hand pick who to work with.

The fi rst reason is that it’s easy for you to say you want to improve, but most people don’t want to do the things neces-sary to make it happen.

This isn’t some magic-button, pie-in-the-sky fad. These are real-world and proven methods for massive profi t improve-

ments. It takes hard work and lots of commitment.

The second reason for me being picky about who I work with on these projects is that frankly I don’t have the time. To create the massive results that you and I are looking for requires a great deal of my time and effort. I am an in-demand speaker, trainer and consultant and I own three successful businesses. Because of my time restraints, I refuse to spend time and effort with wanna-be’s. I only align myself with passionate people commit-ted to winning.

The third and fi nal reason for me being selective is my reputation. I can’t write ads like this and make such incredible guarantees unless I can bring the results. My reputation is beyond solid.

By the way, the $250,000 bottom line improvement is just an example. I have had some dealers increase their bottom lines by more than $1,000,000 in just one year. Look at it this way: I don’t take $10,000 guarantees lightly. I put my money where my mouth is.

Bonus! Call 888 2Tewart (888-283-9278) or e-mail [email protected] August 31st to set up a FREE Consultation and receive the following FREE Bonuses:

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Sincerely, Mark Tewart

P.S. If you are selected for this program, you will receive the following FREEBonuses worth thousands of dollars:

• FREE copy of my new book “How To Be A Sales Superstar”• FREE subscription to our online sales training• FREE DVD of my “High Performance Selling Seminar”• FREE One-year supply of Tewart Traffi c logs• FREE subscription to the Tewart Automated Marketing and Follow Up Program• FREE Advertising and Marketing Analysis

MARK TEWARTTewart Enterprises

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STSDarrenHaygood

What is the fi rst thought that comes

to mind when one of your sales people says they’re working with an “Internet customer?” I’m guessing it’s not a positive thought. Taking it one step further, what comes to mind when I mention the “Internet” in general? Does the term generate positive, profi table thoughts? Again, most likely not.

For years, dealers have viewed the Internet customer as a source of aggravation, more than a source of potential profi t. After all, they’re more educated, just “window shopping,” know everything about your vehicle right down to the invoice, and only want your BEST price right? Well, maybe not.

Going back four or fi ve years ago, I could make an argument that the customer who used the Internet was from a slightly higher economic demographic, extremely price conscious and more educated than your average “walk-in” consumer. However, today, everyone is online. And we need to change how we view the “Internet” and the customers it helps bring into our dealerships. I would strongly suggest that today, the average consumer is much more informed, but LESS educated.

Try this exercise: When was the last time you went through the same thing your customer goes through to send you an Internet lead? Go to three different Web sites, i.e., Edmunds, Google and your factory OEM site (like Chevy.com), and shop for a vehicle. Pick out the exact same vehicle on each site, and confi gure it with the same options and equipment. You’ll be amazed at what you get back. Chances are you’ll get back three different e-mails (all too long and wordy) with different prices and information. And we wonder why our customers still don’t trust us?

The technology of today is changing faster than any of us can keep up with. What currently seems popular and “hip,” like video e-mails, blogs, etc. will be replaced by the latest trend all too soon. So what can we do to simplify the process and improve our results?

First, we need to change our thinking. The Internet has become a marketing tool

and an advertising source, not a type of customer. If used properly, it can bring you more qualifi ed customers with better profi t and results than any other department in your dealership.

And let’s handle this silly perception that it’s all about price right now. Think about it: When was the last time you ran a newspaper ad without pricing? And can anyone show me the $4,000 high gross deal in the ad? Of course not; your ads are designed to stand out and capture the attention of the customer, with aggressive pricing, trying to get them to call or come in. When they arrive at the dealership, do we really want to sell them the “ad” unit? Not really — we will if we have to, but in most cases the customer ends up switching themselves.

Here’s a surprising statistic: Nine out of 10 “Internet” customers end up purchasing a slightly different vehicle than the one they sent in on the original lead. And even more amazing, over two-thirds of new car Internet customers end up purchasing a pre-owned vehicle. (Source: NADA 2007). So, if this is the case, then why do we get so caught up on sending our Internet customers prices? You don’t have any problem putting your most aggressive prices out there for anyone that can read a paper, but we’re scared to death of sending prices to our Internet customers?

Get over it and get aggressive — after all, the original pricing and the fi rst e-mail don’t really matter anyway. Two reasons for this: First, more than 90 percent are going to purchase a different vehicle anyway, and secondly — and most importantly — they are going to purchase from someone they trust and like.

So how do we become that dealer they trust and like? Well, fi rst we need to understand why our customer went online in the fi rst place, instead of just walking in the front door.

It’s simply honestly. They want to avoid the perceived traditional buying process and they want a “fair” deal. In my travels all around the country, the dealers who have the most successful Internet sales departments understand and execute this process very clearly.

So how do we create a unique buying experience, while maintaining profi tability, without having to change the process just for your Internet customers? Let’s look at it this way: What do we traditionally say about customers who come in on rainy days? They’re buyers, right?

Bull! Think about it: When it’s pouring down rain outside, or snowing, or whatever, do we walk the customer around all over the lot looking for a vehicle? No, we bring them inside and sit them down — usually offering them something to drink, and we’re very cordial (after all, this might be the only customer we see today).

Then we do this amazing thing — we talk to them. Asking them about their wants and needs, identifying what it’s going to take to earn their business right now. Then, instead of showing them three or four different vehicles, we go get one vehicle, pull it right up front and walk our one customer out to their one vehicle. From there, the process is virtually the same. But because we started the process differently, the end result is often a sold deal.

My challenge to you is this: Create the perception of a unique buying process for your Internet customers and watch your closing ratio and profi ts soar. Have a vehicle pulled out front, ready and waiting. Have the basic paperwork already started, and make certain a manager greets the customer upon arrival, thanking them for allowing you the opportunity to earn their business.

If you’ve ever been out to dinner, then you can appreciate the difference between a good waiter/waitress and a poor one. How did you tip the good server? A car deal is no different. People will pay you for exceptional service and the perception of a fair deal —which is entirely up to you to defi ne.

So the next time one of your sales people brings you an Internet customer, embrace the opportunity, get out your umbrella and go to work.

Darren Haygood is a national consultant and trainer with ZieglerSuperSystems. He can be contacted at866.902.7379, or by e-mail [email protected].

OH NO! NOT ANINTERNET CUSTOMERRedefi ning Today’s Internet Strategies and Immediately Improving Our Results

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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.

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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.

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MSAnjanJ.Shah

DIAMOND AUTO DRIVES TRAFFIC AND CAPTURES NEW SALES WITH VIRTUAL DEALERSHIP AND UPDATED INTERNET STRATEGIESRecently, The Diamond Auto

Group of Worcester and Auburn, Massachusetts partnered with a digital marketing consultant to give their Web site a completely new look, elegant flair and in-demand functionality to create a virtual dealership. Investing in a new site, with all the backbone behind it to create a compelling virtual dealership, has helped Diamond Auto increase Web traffic and sales.

“Our old Web site was very busy, and some described it like the front page of the New York Times; too much information thrown all over the home page,” said Mike Cronin, Diamond Auto’s Internet Sales Director. The dealership also felt that the previous site was not user friendly and that customers had too many options displayed inconsistently.

But thanks to rebuilding the site, it is now generating twice as much traffi c, hundreds of leads and outstanding closing ratios. “In fact,” Cronin said, “we set about 80 appointments from our Web site each month. And more than 90 percent of those appointments show up. That ratio is through the roof.”

Diamond Auto’s Web site attracts about 4,000 unique visitors each month. “From that traffi c,” Cronin said, “we’re able to capture about 200 leads monthly, with 75 to 80 appointments being set from our Web site.” Diamond Auto’s Internet sales closing ratio is more than 54 percent, which translates into about 30 sales monthly— on top of the showroom’s sales. During its best month, Diamond made 55 Internet sales.

To achieve these results, Cronin has

revamped the dealership’s auto responders. “They’re short and sweet, and we’ve given them personal touches that address what the customer is looking for specifi cally,” he said. To achieve appointment show and closing ratios, Diamond ensures that everything they do leads to the appointment.

Although Diamond Auto recognizes that automation is important, they also understand that “you have to be careful, because you don’t want to become a cookie cutter. You want to be that pink house on the block,” Cronin said. To that end, Cronin studies the nation’s top 10 dealerships in addition to the other dealers in his area, then times the Web site e-mails to arrive “off-kilter” from the competition. And, when leads come in, Diamond Auto follows a timeline to ensure each lead is handled correctly, from start to fi nish. “We’re defi nitely a force to be reckoned with,” he said.

Currently, Diamond Auto is in the midst of updating its e-mail database to ensure even higher delivery and open rates for the automated e-mails. But rather than relying strictly on third-party lead sources, Diamond Auto has taken a different path. By hosting events in the communities and collecting names and e-mail addresses from participants, Cronin expects to collect as many as 125-150 fresh e-mails every week to improve his database.

Cronin says that Diamond Auto implemented several features for the Web site that have been very popular with its customers. “Our site is tailored to meet our customer needs, and we update content whenever we think it’s necessary,” he said. “But our most popular site is the Spanish language version. We sell cars on this

site every day.” Other aspects of the site that are drawing a lot of attention are the pop-up coupon, the “make-an-offer” page and the trade-in page, where customers can enter their vehicle’s information and fi nd the value of their trade-in. There’s so much to do on the site that more than 42 percent of the site’s visitors stay for at least fi ve minutes.

These features, along with a customer-centric focus, are setting Diamond Auto apart from the competition. In the dealership’s local areas, there are 14 Chevy stores, but Diamond Auto’s site is No. 1. “Whereas we used to fall into the crowd with an average Web site, our presence is now known in our market,” Cronin said. To help drive additional traffi c to the site, Diamond Auto advertises on radio and TV as well as in the newspaper, and the Web address is part of every advertisement.

With the success of the new virtual dealership, it might be easy to forget that people are involved. “The greatest success of Diamond Auto is the accessibility of our owner,” Cronin said. “While he has an offi ce, he chooses to sit at a desk on the sales fl oor, where he can talk to customers and employees all day long.” Cronin’s goal is to have people look at Diamond Auto and see people — “people you can trust and develop friendships with. Anyone can sell a car, but when you sell a car and your customer comes back with a friend or family member, then you’ve made a friend.”

Anjan J. Shah is the marketing programs manager at ADP Dealer Services. He can be contacted at 866.922.0174, or by e-mail at [email protected].

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STSFranTaylor

IT’S EASIER TO MAKE MONEY NOW THAN EVER BEFORETo be successful, start where others

stop, and when you have done your very best, look for help.

What does that mean? You have to admit that your way isn’t working, and start

looking for a better way. That doesn’t mean it has to be a new idea. This simply means doing things that you know work.

Start with managers. If your sales staff’s average time on the job is less than three years, start there. Training is usually the

downfall, and not new employees. You need a leader to show people, and delegate the work to be done, with consequences if the work is not completed in a satisfactory way.

Examples: Training costs you nothing if your managers do it on a regular basis. A dealer I’ve worked with in North Carolina says “if you don’t deliver 10 units a month, you will be in training class from 11 a.m. until noon every day you work. It doesn’t matter if you have been selling one month or 20 years.” Maybe that is why they are one of the largest and most profi table stores in the state.

A store in Central Pennsylvania has training for 20 minutes a day. They teach why, when, how and what the benefi t is in what they’re training. Their managers also each get $300 a month to take salespeople out prospecting. This is guaranteed to get your money back at the same time you are teaching salespeople how to sell more cars. Eventually, someone pays for your lunch every day for the rest of your life.

At this store, the managers help the salespeople make appointments if needed. It is required to have an appointment every day. This is teamwork at its best, rather than “let’s get on the phone, guys.” The appointment board is where the manager can see it, not hidden in a computer.

The owner of this store has 10 different locations that are about three hours apart. This particular store was delivering less than 50 new and used vehicles a month when it was purchased. The best month so far has been 196. They only spent $22,000 on advertising that month. Oh, yes — there are only 10,000 people in the town.

One of the best qualities the managers of this store have is that they knew what they wanted, but needed help. They hired a company to help them.

Can you do this? Of course. Training is not an expense if you get your money back ten-fold plus. To be successful, do what others don’t do. This is easy if you stick with it and have accountability.

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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DalePollak

VEHICLE INVENTORYOR MARKET’SDAY SUPPLY

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STS

I believe we need to challenge some

assumptions in traditional dealership thinking. For the fi rst 100+ years of the used car business, we’ve always adjusted our prices based on how long we’ve owned the vehicle. But I say its time to stop doing this.

What if you had to choose: You could either pay attention to the age of the vehicle in inventory or its day’s supply in the market, but not both? My professional opinion is that you’d be far better off knowing the day’s supply of the vehicle in the market. Think about it — if you knew from the fi rst day that you had a vehicle in stock that it had a market day’s supply of more than 100 days, how long would you be proud of it? Answer this question: How long would you be willing to advertise a new vehicle for over-market money if there was a 100-day supply of identically equipped vehicles in your market? I think the answer is that you probably wouldn’t do it at all. So why are you doing it in your used car operations today? I can show any dealer that they have vehicles with 100+ market day’s supply being advertised for over-market money.

The reason that our industry is willing to do this with used vehicles is that they don’t understand what it means to do business in an effi cient market. An effi cient market is one where buyers and sellers have relatively equal knowledge about their choices and alternatives. Given this defi nition, was the used car market effi cient before the Internet? No. We often got buyers to take cars home for more money than they would have if they’d only known where other similar ones could be found around town for less money. There were always such vehicles; it was just that they were not easily found. Is the used car market effi cient today, and getting more so every day? Yes. The Internet gives shoppers access to the information they need to be aware of all of the available choices and alternatives for every vehicle.

Now, think about this: Any market that’s effi cient is governed by the same forces and principles. It doesn’t matter whether it is the oil, grain, cattle or automobile markets. If they’re effi cient, they’re governed by the forces of supply, demand and price sensitivity.

In other words, now that the used car business has become an effi cient market, dealers are either sailing on the seas with the wind at their back or in their face, on a unit-by-unit basis, depending on the vehicle’s supply and demand. When I say the vehicle’s supply and demand, I mean its current availability (exact year, make, model and specifi c equipment) divided by its average daily retail sales rate over the last 45 days.

Simply stated, if you have a vehicle whose demand outpaces its supply, shoppers will beat your door down, even if you price the car over the market and call it “ugly.” Conversely, the market will punish you if you take a vehicle whose supply outstrips its demand and price it over the market. The simple time-tested principles of supply and demand never mattered when the market was ineffi cient and customers didn’t know where other similar vehicles and better deals were to be found. Now that the market is effi cient, I say that the day’s supply of the vehicle is actually a much better determiner of how proud your asking price should be, rather than the calendar that marks the age of your vehicle in inventory.

I would appreciate your comments on my viewpoint. This issue promoted lots of debate on my Blog (dalepollak.com) and I fi nd this discussion interesting.

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

29

the #1 sales-improvement magazine for the automotive professional

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STSSeanV.Bradley

INTERNET SALES 20 GROUP VIII

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Last month we focused on Covey’s

fi rst habit of the 7 Habits of Highly Effective People: “Be Proactive” This month we are going to tackle the second habit: “Start with the End Result in Mind.” I walk into dealerships all over the United States and ask Internet sales managers, coordinators and directors how much money they want to make. For the most part, people in this business wind up here by accident or by circumstance. But we are all here to make a living. And that is what I love about this business. You really can make as much as you can earn.

Again and again, I see dealers who tell me their stories of how they started out selling cars, and now own multiple dealerships. Personally, I was a BDC director for more than fi ve years; now I am the CEO of a national company. I love the car business, but how do we get there? How do we go from ordinary to extraordinary? When I ask people how much they want to make, sometimes they say “as much as possible — duh!” I pin them down to a number (and the numbers vary), and then ask how are they going to do it. Almost all of them say the same thing: “I need to sell cars.” But, I then ask them how are they going to sell those units, that’s when they look confused. Some will say, “Work hard and sell more cars.” But the vast majority of people I ask have no real plan; they don’t break it down any further than “I need to work real hard and sell more cars.” It’s not their fault — most salespeople have never been shown how to project, forecast or create a sales funnel or a pipeline. Most have never been given the proper tools to do so. Start with the end result in mind. This is such a powerful habit to adopt into your core — into your essence as an automotive sales professional — no matter what your role is in the dealership.

I have created a successful and easy system for our clients. I call it my “Three-Minute Book.” To get started, get a one- or two-inch binder, along with three dividers and solid three-hole paper.

First SectionThe fi rst section is fun to create. It’s called “Things I Want to Acquire.” In this section, fi nd photos of what you are looking for and add it here. You are putting things that you want to get in life — tangible things.

It is not merely enough to simply write the words “I want a new house”; you want to fi nd a picture of a beautiful new house that you would love to someday own. Many people have pictures of piles of money, vacation hot spots, etc…. The idea is that it seems that a lot of people want success and nice things, but they never visualize it. They really can’t ever see themselves owning it; they simply say it out loud, but it is empty. It is imperative that, if you want to achieve something, you know what it is and actually visualize yourself achieving it.

Second SectionIn this section of your new “Three-Minute Book,” create your roadmap of how you are going to get everything you have identifi ed in the fi rst section. Here is an example:

Ask yourself how much money you want to make this month. Let’s say you are an Internet Coordinator (professional appointment setter), and you want to make $3,000 for the month. Here is what your road map would look like:

Goal for August = $3,000Salary = $1,600 ($400/week x 4 weeks)You need to earn $1,400 in commissions to reach your goal.(In this example, your commission structure = $1 for every appointment made, $15 for every appointment that shows and $25 for every appointment that gets sold / delivered.)

Let’s use the 50/50/50 rule, meaning that 50 percent of the appointments you make show up, 50 percent of the shows will get sold etc….

100 appointments made x $1 = $100 50 appointments that show x $15 = $75025 appointments that get sold / delivered x $25 = $625Total = $1,475

Congratulations! You just exceeded your goal. But we are only half-way done. You now have the what you need, but not the how. Here’s the rest:

100 appointments per month / 4 weeks = 25 appointments per week.

25 appointments per week / 5 working days = 5 appointments per day.

5 appointments per day / 6.5 (working) hours per day = 1 appointment every 1.3 hours.

You should be making or taking no fewer than 120 calls per day. If you can do that, you can and will achieve these goals!

Third SectionIn the fi nal section of your “Three-Minute Book” is your scorecard. Everyday, you need to measure both today’s stats and the month-to-date stats.

• How many opportunities?• What kind of opportunities: Internet

e-mails or Internet phone ups?• How many attempts to contact these

prospects?• How many connections?• How many appointments?• How many appointments showed?• How many appointments sold?

You have just completed your “Three-Minute Book.” Why do we call it your “Three-Minute Book”? Because this book will change your professional life with just three minutes a day of your time.

Before you go running around to start your day, take out your “Three-Minute Book” and spend one minute on the fi rst section, on the things that you want in life. Spend that minute believing that you can and will acquire all the things you desire. Then turn to your second section, your roadmap. Look at exactly what you need to do this month, this week, this day, this hour. When you’re done, turn to your third section — your scorecard — and look at your stats. Are you exactly on course or do you need a realignment?

Imagine that everyday you spend just three minutes before you start work to get “calibrated” and focused. You are going to look at and see what you want in life, you are going to see and internalize what you have to do to get there and then, you are going to keep score.

I truly wish you all the very best. And remember: “Begin With the End in Mind.”

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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JeffKershner

FIVE ROCK-STAR WAYS TO BRAND YOUR DEALER’S INTERNET SALES DEPARTMENT

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Do you brand your Internet sales

department so that every customer feels compelled to ask for you when they arrive at your showroom? There is nothing more frustrating than fi nding out that the customer sitting at another salesperson’s desk signing the paperwork for their new vehicle is the same customer you had been e-mailing back and forth with over the last several days. Isn’t that your customer? Why didn’t they ask for you? This happens every day, and many times results into a heated conversation between the salesperson, sales manager and the Internet sales department.

Walk the higher road and let the sales fl oor have the deal. Take responsibility for the customer not asking for you and instead, fi nd ways of branding yourself so when one of your next potential customers arrives at the dealer, they want nothing more than to work with the Internet sales department. Here are fi ve proven ways that are quick, easy and will help brand your Internet sales department like no other:

1. Build Your Image With PhotosPotential customers are initially on your site for one reason: Inventory. When the customer fi nds the vehicle they are looking for, the fi rst thing they gravitate to are the photos. Use this great opportunity to grab their attention and start branding your department.

Slide a photo of your Internet sales team members in the line of vehicle photos between the exterior and interior shots. Be sure your team photo radiates professionalism while also portraying that you’re easy-going and fun to work with. Don’t forget your glamour smile on the day of the photo shoot.

2. Who Says the Dealer-Rating Web Sites Are for Consumers Only? A strong WBFM (“Why Buy From Me”) message can give you the competitive edge. Your customers love you — you hear it all the time about how great of an experience they had. Why not get them to share their positive experience for everyone else to read?

Condition yourself to ask every one of your customers to share their experience on one or several of the consumer or dealer-rating Web sites, such as dealerrater.com and insiderpages.com. As you build enough positive customer comments, you will now have a tremendously strong WBFM message that you can talk up to all of your potential customers.

3. Be Fearless and Build Transparency With VideoVideo is yet another way of gaining the competitive edge, since most people shy away from the camera. Nothing builds transparency quicker then a few short videos of you and your team.

Commit to fi lming several videos that distinguish the difference between you and the competition. Let your customers know you and your team are the solution to their vehicle-buying needs. Consumers are looking for the right car, just as they’re looking for the right dealer with whom to do business.

Video is easier then ever. You can certainly go high-end, but a simple Flip video recorder from your local electronic store will do the trick. Check out videospin.com for free and easy-to-use video editing software that works great with the Flip camera.

Take your fi lming to next level and get your positive customer testimonials on video, as well.

4. The Neglected “About Us” PageWhat is the real value of your dealers “About Us” page?

When a customer clicks on your “About Us” page, they are looking for a reason to do business with your dealership. For lazy reasons, most dealers ignore this page or use the default text provided by the Web site vendor.

Take advantage of this page and brand your Internet sales department to another level while cementing a relationship between you and your potential customer. Let customers see a more human side of your dealership.

Remember, just because the page is labeled “About Us” doesn’t mean you get to talk the “Me, Me, Me” message. The key to great marketing is not what you say about yourself, but what your customers say about you. This is a great place to display those customer testimonial videos.

5. Don’t Forget Your Sensational SignatureThis might seem like a no-brainer, but believe me, many sales people overlook this effective element for branding themselves. Every e-mail you send is yet another opportunity to brand yourself and your Internet sales department. Before you hit “send” one more time, make sure your signature line says all it needs to about you and your Internet sales department.

Your signature line should include your name, job title, the name of your dealership, your direct phone line along with your cell phone number and your Web site URL. These are, of course, the obvious elements — but why not take it a step further? Include a photo of yourself, a dynamic tag line and a P.S. note linking the customer to your consumer ratings profi le page or your new “About Us” page.

Many Internet sales managers are left to believe that you need special “Internet pricing,” a “Benefi ts Package” or a “Free Give Away” in order to get the customer to ask for you. Instead, sell something larger than the price of your vehicle. Sell your brand, sell your image and sell your customer what they are truly looking for. Be the rock star you are — take full ownership of your Internet sales department and fi nd every opportunity to brand it to the max.

Jeff Kershner is the corporate sales trainer for MileOne and founder of DealerRefresh.com. He can be contacted at 866.847.1893, or by e-mail at [email protected].

You get what you pay for.

So where do you think the most talented, motivated, highly-trained,

professional car guys in the industry end up working?

gamarketing.com800-688-1370

[email protected]

Team Leader Closer F&I Manager

FALSE ASSUMPTION #17

“All SuperSale Teams are the same -

so go with the cheapest.”

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JohnBrentlinger

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Here are three bedrock principles

of management. These principles are foundational in nature. If present in a dealership, these principles form the basis for growth, productivity and profi t. If absent in the daily workings of the dealership, the result will be disastrous. Adherence to these principles can put an end to the cycle of mediocrity that is evidenced by constant criticism, blame assessment and regular hiring and fi ring of good salespeople. Knowledge is power, but knowledge is only a rumor unless it changes personal behavior. Leaders are the key to the success of the dealership. No dealership can survive poor management. A dealership which grows and prospers does so only on the basis of good, diligent, growing honorable leaders. Here are the three principles: 1. There is No Management; There is Only LeadershipManagement is based on a position of authority, and little else. Authority is most often exemplifi ed by force, fear, criticism, discipline and punishment. Those things might work in the Army, Navy, Air Force and Marines, but in an all-volunteer workforce, as Dr. Phil says, the hunting days for that dog are over.

Leadership can accomplish in a month what management takes years

to do. Why? Because leadership is based

on more than a position.

Leadership is based on character traits: honesty, integrity, duty, loyalty and commitment. You can have none of these qualities and be a manager. But you cannot be a leader without them. Why? Because no one will follow you. People are the greatest resource of any dealership. Leadership is the ability to gain the willing following of those people. If you have the willing following of your people, you are a leader. If your people fi ght, grumble complain and impede progress, you are only a manager. And, as your people can tell you, management is a poor substitute for leadership. Stop trying to manage everything, anything. Become a leader whose loyal people follow, work, produce and profi t willingly. 2. The Salespeople are Never the Cause of any Problem Facing the Dealership If your response to that is, “The heck they aren’t,” you are only a manager. Go back and read Principle No. 1 again, and again and again. Management survives on blame assessment — “It’s always someone else’s fault, someone is to blame, and we’re going to have to get rid of them.” Leaders face reality, they accept the ups and downs of the marketplace and they never stop believing in and helping their people. Managers constantly push for numbers and volume, at the expense of their people. Leaders hire and train good people and let them grow, learn, work and become as productive as they can be. If, as a manager, you micro-manage every deal, every process, every motive and every move of every salesperson you have, you cannot hold them responsible for results. Why? Because the results will not be theirs, but yours. Everything is

your decision, not theirs. Micro-management is the result of

thinking the salespeople are always to blame. Consider this: If the salespeople were the cause of ANY problem facing the dealership, all you would have to do is get rid of all the salespeople, hire new ones, and voila, no mas problemas. Oh, you say you’ve done that before? How did it work out?

Leaders face reality. In tough economic times, leaders stand by their people, and they grow through tough times together with their people. As the leaders grow and learn and change, the salespeople follow willingly. 3. If the Dealership is to Grow and Learn and Change, It Must Begin With the LeadersEverything rises and falls on leadership. The greatest leadership is self-leadership. Salespeople will follow willingly and produce wonderfully for a leader who exhibits in his/her personal life what they expect from their salespeople. As leaders grow inwardly through real training, self-discipline and self-control, salespeople will grow along with them. That is why good leadership can survive any economic condition. If you are facing tough times now, stop working on the salespeople and focus all training on your leaders. In tough times, most managers spend their time trying to get the salespeople to be better. Leaders in tough times expect more of themselves. As leaders grow, salespeople will follow willingly. But salespeople will not grow, learn and change if their managers do not. Salespeople are adults and they can see through that hypocrisy. And as adults, salespeople hate to be treated like children. Leaders treat their people as adults. If you want your people to grow, you must grow fi rst. If you want your salespeople to be more productive, you must be more productive fi rst. If you want your salespeople to trust you, you have to trust them fi rst. Salespeople will never rise above their leaders. It is your duty as a leader to be the kind of person you want your salespeople to be. If your salespeople aren’t growing, learning and changing, then work on your own growth, your own learning and your own changing. Do that and you’ll be amazed at how much better your salespeople can be.

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].

MANAGEMENT 101:Knowledge is Only a Rumor Unless it Changes Behavior

“People are the greatest resource ofany dealership. Leadership is the ability to gain the willing following of those people.”

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PART OF LIFE’SJOURNEYThis month, I want to share a book I

just fi nished reading — The Ultimate Gift, by Jim Stovall.

The main person in this great, fast-reading book is a young 24-year-old Jason Stevens. When Jason receives the news of his Great Uncle Red’s death, he is greedy with anticipation, as are all of Red’s other relatives. They wait in the lawyer’s offi ce to divvy up the man’s massive fortune — and I mean massive.

One by one, Red’s benefi ciaries receive their portions of the multi-billion dollar estate. But when it is at last Jason’s turn to collect his inheritance, he fi nds quite a different fate in store for him.

Mr. Hamilton, an 80-year-old lawyer with 53 years of practice, gathered the family together and, as instructed by Red, read the will. Each member of the family was given a company, home or ranch — but they all had instructions to go with their inheritance. Panhandle 6 Oil and Gas Company, worth 600 million, for example, was given to Jack Stevens, his oldest playboy son; the daily operation, however, would be left to the Board of Directors. Each one was given his or her inheritance, but no one was left to solely run the business. Old Red said if he let any of his children run one of his companies, it would be like giving a three-year-old a loaded gun. And, after each one was given their inheritance, they had to leave the room.

The last relative left in the room was his nephew Jason to who remarked, “Okay, old man, what the heck did my rich, crazy Uncle leave me? Let’s hear it so I can be on my way. I have things to do!”

Mr. Hamilton told Jason his Uncle left him a videotape that would explain everything. As he played the tape, Red started with

“Now, Jason, before you mouth off and embarrass both you and me in front of Mr. Hamilton, let me explain the ground rules here. On the fi rst of each month for the next year, you will meet with Mr. Hamilton and be given one element of what I call ‘The Ultimate Gift.’

“If you stay the course over the next year and embrace each element, at that point, you will get what I left you in my will,” Red continued. “But, if you don’t do as I request, I have instructed Mr. Hamilton to stop the process and leave you with nothing. Now, don’t forget, boy, if you turn out to be more trouble than you’re worth — which is not diffi cult for you — Mr. Hamilton, will simply cut you off without another word.”

So, the fi rst month, Uncle Red made him work at the ranch he worked at in his 20s putting in fence posts. At the end of 30 days, Mr. Hamilton picked up a young man very different than what he left off. “Mr. Hamilton, before we go back, may I show you how straight my fence is?” The foreman of the ranch told Mr. Hamilton, “The fi rst few days it was a challenge, but the last three weeks Jason was the best hand I had. Just like his Uncle Red was.”

The next few months, he worked one month in a library and learned the power of learning. One month he spent at a boy’s home as the “house mom” for boys without any parents. His uncle had donated the library and the boy’s home for 32 young men. During this time, the director took a much-needed month off while Jason was there.

Another month, he had to give money to people in need — and help the old and the young. At the unwed mother’s home, for example, he fi xed broken-down cars. His uncle had given him a big beautiful home, which Jason now let two different charities

use for special events.

At the end of these 12 months, this young man changed to be a very giving, caring individual. He wanted to share love and what he learned during the past 12 months with his friends and family. His uncle left him two billion dollars, and Jason, a changed person, was ready to carry on in his uncle’s footsteps.

Personally, I know I have done too much for my own daughter. After reading this book, I want Erin to have some tough times, so that when she has a family, she can look back at the time she waited on tables, babysat, worked after school, and had to come home early Friday night because she had to get up early on a Saturday morning.

Sometimes, we “fi x” so many things for our children that we need to give them the experience we had growing up.

I wish all of you a chance to help someone less fortunate than you.

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].

USA Today (June 27, 2008) — “There

has never been a time in the auto industry like this,” Van Conway, senior managing director of the Detroit-based restructuring fi rm Conway, MacKenzie & Dunleavy, said Thursday, “Those are shocking numbers.”

Conway is responding to the national estimate of automotive sales for 2008. For more than a decade the U.S. auto market has held levels of around 17 million new cars. JD Powers have predicted a 2008 adjusted annual rate of 12.5 million and Edmunds.com, a respected information and shopping site that the 16.7 percent decrease in June of 2008 would make adjusted annual sales around a rate of 13 million.

And Now for Some ReallyGood News!We still sell cars one at a time. I worked for many years for a dealer named Hal Roper. Hal and his family have successfully run dealerships for more than 50 years. He always had a way of cutting to the heart of any matter. One of the simplest, yet most profound, “Halisms” is, “We are not selling cars because we are not selling cars.” Think about it: We often skip the basic steps of actually creating the desire to purchase. Here is what we all should know about the car business:

• 80 percent of our customers tell us that they bought the car because they liked the salesperson

• 50 percent buy on the spot when they get a great demonstration and presentation

• 99 percent tell us that they have to drive the car before they will buy it

• 30 percent will come back to the dealership with good follow up

• 67 percent is the average closing ratio on a be-back

• 50 percent of our repeat owners will continue to do business with us if you have a great follow up system in place and we honor our commitments

Luther Hodges said many years ago, “There is no economy, good or bad, that good old-fashion salesmanship can not overcome.” If we truly believe we still sell cars one at a time, there are some facts that we need to remember. If the market is off 20 percent this only means that 80 percent of the customers are still buying cars. Take a look at the size of your market. Let’s say that you sell in a market of 50,000 people. Industry statistics tells us that 30 percent of the people in your market are in the market or know someone in the market for a vehicle right now. So let’s do some math. When 30 percent of 50,000 people are actively looking for a vehicle, that means 15,000 customers are out there. As Joe Verde says, “if you do not agree with that number, cut it in half.” This means that 7,500 customers are actively looking for a vehicle. The beauty of this is that you only need 18 to 25 of these customers to earn an incredible living in the automotive industry. So how do we get them?

1. Get Serious About Planning and Goal SettingTake time to evaluate and track your past performance. If you have not tracked your opportunity count or sources of business, then you must start today. Professional salespeople must know how many fresh ups, repeat owners, referrals, new business, be-backs and phones they have talked to, and what their closing ratio is on these opportunities. Only then can they write

a daily work plan to create the type and amount of opportunity they need to be successful.

2. Get Serious About Prospecting a Follow Up We have already identifi ed that customers are still out there buying vehicles; we just have to fi nd them.

3. Follow the Basic Steps of Selling Short cuts are killing your paycheck. We must build rapport, investigate the customer’s wants and needs, select the least-expensive vehicle that best suits their wants and needs and give the customer an award-winning product demonstration, followed by a predetermined evaluation drive. By creating the desire of ownership, the customer will buy the vehicle and we will not have to try to sell it to them.

4. Honor Your Commitments You are only as good as your word. Make people feel smart for doing business with you. You will never need to take another fresh up again if you concentrate on award-winning customer service.

In the March 2008 edition of “Selling Cars Today,” Joe Verde pointed out that even though the market may be off only seven percent, the average salesperson will be so convinced that the prospect on their showroom is not buying that they will give up the sale before they ever attempt to make it. That is the best news for you. Be different; be a professional.

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

JimAdams

FIRST, SOME REALLY BAD NEWS

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LauraNoonan

LEAD NURTUREThe Art of Generating, Capturing and Selling

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When it comes to generating leads, the

phone proves time and again to be a highly valuable tool. In fact, many auto dealers fi nd their phone leads are more qualifi ed than online leads. Yes, the Internet is where many dealers are sending buyers when they’re researching a vehicle purchase, and online advertising has gained a fair share of dealer’s advertising budgets; the phone, however, tends to bring in serious buyers and fewer junk calls than online leads, which can generate duplicate contact forms by users or fraudulent spam inquiries.

The May 2008 Pew Internet & American Life Project study, The Internet and Consumer Decisions1, concludes that although people use the Internet to sort through product choice, it is not the only method they use to research a purchase, and the Internet is not the place where buyers often close the deal. According to the study, more often than not, purchases are carried out offl ine.

There are various reasons that people prefer to go through with a purchase offl ine versus online. A second Pew study, Online Shopping2, fi nds that:

• 43 percent of Internet users have been frustrated by the lack of information they fi nd while researching goods or services online.

• 32 percent of Internet users report being confused by the information they do fi nd online during their research.

• 30 percent report feeling overwhelmed by the amount of information they fi nd.

With the phone being a primary offl ine consumer choice, it is clear that fi nding

ways to increase incoming calls to your dealership is a strong lead generation tactic — these leads are the infamous “low-hanging fruit.” Prospects who call in to your dealership are interested enough in your brands and service centers to take the time to engage in a personal conversation, offering their name and contact information directly, rather than anonymously through an online contact form.

So, let’s break down the phone lead capture cycle:

GENERATE more qualifi ed leads:Using your dealership’s phone as a lead generating tool is the most effective way to bring the low-hanging fruit or “buyers” into your sales cycle. A vanity 800 number placed in your advertising and marketing materials will get you 30 to 50 percent more potential customers than a numeric toll-free phone number. And, in the case of one marketing manager at a dealer group with whom I’ve spoken, their phone leads close twice as often as their online leads, further demonstrating that the phone is a highly effective way to communicate with buyers.

CAPTURE caller data and experiences with an advanced tracking system:Asking a caller for their contact information — names, addresses and phone numbers — is great for relationship building, but you need a backup system to combat the inevitable occurrence of human error. Incoming phone leads can be tracked with reporting and recording software services. This not only provides a computer back-up of caller information, but the recorded conversations are invaluable to gain fi rsthand insights on your selling team’s capabilities, the customer experience and how employees are responding to sales and service inquiries.

NURTURE & SELL to buyers – cultivate your database and the relationships will blossom:With a call tracking system, you can download valuable demographic information (such as average household

income and average home value), which empowers you to tailor your communications and make them as relevant as possible to the caller. And, adding this information into your CRM system makes the call data all the more valuable. For example, you can use the addresses and demographics to build your database, and leverage the average household income data for a specifi c market area to identify their purchase power. And remember, they called you. They are already interested in what’s on your lot. Take care of them and let them grow into sales opportunities. Add these new leads to your mailing and prospect database, and include them in future advertising, promotional and marketing campaigns. Most importantly, as we all know, stay in touch with them on a regular basis to continue building awareness and maintain a business-customer relationship to reap future service dollars and car purchases.

Using the telephone as an effective offl ine lead generation tool is not only tactically effective but also cost effective, and will quickly develop and enhance a strong database from which you can better leverage your marketing efforts and optimize your dealership’s performance.

Take this simple approach: Implement a proven consumer response tool (preferably a vanity 800 number to generate 30-50 percent more incoming leads) with an advanced call tracking and lead capture system and you’re effectively expanding your target audience, building your lead database for future communication and advertising efforts, and growing your sales opportunities.

1 The Internet and Consumer Decisions, Pew Internet & American Life Project, May 18, 2008Author, John B. Horrigan, Associate Director

2 Online Shopping, Pew Internet & American Life Project, February 13, 2008Author, John B. Horrigan, Associate Director

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].

“...it is clear that fi nding ways to increase incoming calls to your dealership is a strong lead generation tactic — these leads are the infamous ‘low-hanging fruit.’”

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MSChuckPatton & TriciaPatton

SERVICE: SERVICE MARKETINGAND BUILDING A BRAND

Operating a service

department effectively can allow it to serve as both a profi t center and an advertising investment. It should be, by far, the most cost-effective advertising you make to generate sales leads. Why? A typical dealership generates 77 percent of operating profi ts from the service department, and it averages just below 25 percent of the total dealership gross sales. Most customers frequenting your service department will give you an opportunity to sell them their next car. You cannot generate that kind of revenue opportunity through investing in traditional advertising media.

Keep the service customers loyal and you will profi t from the service work, as well as build a new purchase relationship with the customer. This can be a simple formula as long as the customer has a positive perception of your dealership and is satisfi ed. However, this is easier said than done since you cannot always control every human interaction that occurs in the store. The impression that the consumer has of your dealership can make the greatest difference. So, how are you building that image or brand to keep that good impression?

Typically, a dealership spends a little more than one percent of their gross sales advertising — but how they spend it is changing dramatically. Consumers want more information and they want the information directed to them, for them and about them. This is why traditional marketing is changing so dramatically. According to NADA, a little more than 10 years ago mediums like direct mail and the Internet didn’t even have their own piece of the pie. They will soon grow together as more than a projected 25 percent of the total expenditure by the end of the 2008 season. The greatest example of success within these two mediums is occurring in service. Internet and direct mail are most effective when they are targeted to the customer, for them and about them. The service department is your largest resource for tracking customer behavior due to multiple transactions that are taking place per year. If you take advantage of this resource, Internet and direct mail messages can be customized and specifi c to the customer the way they like it.

Almost every manufacturer has a service-marketing program that makes it easy to target consumer frequency and persuade the customer to increase their loyalty. Some dealers are hesitant about this advertising communication and underutilize the investment. Some manufacturers might infl uence you to use their national program, stressing that you must stay in front of your customers. This is the right approach, but what is your message once you are in front of the customer? The key point of this phrase is your customer. You are there to bring customers into your store to service their vehicles. Then, you want to encourage them to buy their next vehicle from you. So ask yourself who “you” really are, and what you need to do in order to maintain a positive impression. This positive impression does not exist if the customer doesn’t perceive it. What percentage of your one percent of sales are you spending on building your brand within the market? What are you doing to extend a positive impression on clients? Cheap prices do not always build strong positive impressions to everyone.

Building brand does not typically happen in the sales department. You invest those dollars in staying competitive on price. That may never change. However, increasing service loyalty tends to be more about convenience, time and quality in addition to cost. So, it makes sense to focus your service marketing around yourself in order to build brand and drive customers in. Here are some short rules:

• Talk about you, not your manufacturer’s line — This is the No. 1 problem with most manufacturers’ service mailing programs. They want to talk about them. This may build loyalty to the vehicle, but that does not ensure they will come back to your store to buy versus the guy on the other side of town.

• Move the needle, not the metal — You are interested in selling services that are profi table and move the needle. Your manufactures’ program can be focused more on moving metal — parts. Keep your offers focused on services that make sense for the largest audience, and not just the highest parts gross.

• Know who you are and what you want to be — It doesn’t take an expensive survey to understand what you do right and what you do wrong. Every dealership should have managers and leaders who know what image needs to be in the community in order to attract customers through trust. Know this and sell it, just as much as you sell discounts.

• Keep your logo and tag lines consistent — You don’t need a professional advertising agency to make up a tag line such as “quality is never compromised.”

• Plan for the year — Most service managers aren’t trained in marketing, so be sure there is a plan for how the dealership is going to be branded for the year. Once this plan is created, they can focus on what truly makes the dealership money — managing people and customers.

• Hold on to the notion that your service department is also your public relations department.

The average dealership has between 5,000 and 7,500 customers who have visited their service department within the past 24 months. If you regularly direct market to these customers, at least quarterly, you are getting between 20,000 and 30,000 impressions in one year. Great branding needs to be a byproduct of successful direct marketing. If you are not taking the steps to build a positive customer impression, then there will not be a successful direct mail program. Consistency is the key. Consistency is about building a positive relationship over time with your clients. It is not about beating up your customers and your wallet until you fi nally realize there is no value being built. Consistency isn’t about a magic pill, but rather emphasizing the relationship you have to offer your customers.

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].

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MANAGERS, GET IN THE DEAL EARLY AND SELL MORE CARSWant to sell more cars? Then you

might just want to take the advice of the late great James Brown and get up off of that thang!

Years ago, I coined the expression “the Velcro rear end.” I was referring to the huge numbers of managers that seemed to have their posteriors adhered to their chairs at the desk. We, as managers, often become complacent and often leave it up to the sales consultant to make it happen.

Focus on Writing Up 100Percent of the Traffi cIn today’s market, we have to take advantage of every opportunity and focus on writing up 100 percent of the traffi c. Managers need to be proactive — instead of reactive — when it comes to supporting the sales associate and the sales process. Often, I have seen a manager ask of a sales consultant, “What happened to your customer?” Or, even worse, I’ve seen the manager chase the customer out the door.

In my early career as a salesperson, it was common to hear a manager say, “Don’t ever introduce me to a customer until you have a commitment.” This seemed to be even more prevalent in used car managers. Sure, I understood, based on their descriptive explanation as to why, but it really didn’t make any sense.

When conducting management workshops, I will often refer to this analogy. If you were playing golf with a friend and he or she brought it to your attention that their relative or friend was looking for a new or pre-owned vehicle, how would you

handle it? They inevitably responded with, “I would tell them to call me,” or “have them come in and ask for me.” When the customer would arrive at the dealership, the manager would go out, greet the customer and introduce them to a salesperson. At that point, they would tell the customer that the salesperson would be happy to assist them in selecting the vehicle of their choice and take them on a demonstration drive. They would also tell the customer that when they return to the dealership that he or she (the manager) would work up all the numbers.

What they didn’t realize was that the customer always followed the process that had been presented to them by the manager. This most always resulted in the customer becoming more receptive to the sales process and to the salesperson, regardless of his or her experience. Doesn’t sound too diffi cult, does it? If it works that well on a referral, why not use it on every customer?

“The Guy on the Lot in the Red Shirt was Just Looking for Directions to

Burger King”We all know that when you increase the number of write ups, you sell more cars. What we have found is that approximately 60 percent of the traffi c never hits the showroom fl oor. That’s because so many times we let the salesperson tell us that the guy on the lot in the red shirt was just looking for directions to Burger King. If we would take the effort to get up

off of our Velcro rear ends and walk out onto the lot or the showroom fl oor, we could engage the customer and get them headed down the path to a delivery.

Now let’s consider the benefi ts of meeting the customer early in the process:

• Keeps you in control of the process• Customer is more receptive to

following the process• Makes the customer and sales associate

more comfortable• Guarantees a demo drive • Guarantees a write up• Makes for a warm T.O. (turnover to

management)

• Makes the numbers easier to deliver for the salesperson

As managers know, it is becoming more diffi cult to recruit, train and retain good sales professionals. Another benefi t of early introduction to management is the ability to get the new associate on the fast track by giving them the confi dence they need to succeed. Many times new hires blow out simply because they didn’t understand the process or were intimidated by a customer or manager when it came to following the sales process. Remember, you, the manager, are in the ultimate position of strength when it comes to handling the more diffi cult objections that a customer may have. When the manager gets involved early, objections like price, monthly payment trade and rate can easily be overcome and typically will not be revisited with the salesperson until the actual presentation of fi gures. Sales people are more confi dent in the delivery of the fi gures because the customer was told up front that they were being handled by the manager.

Who would you rather take a T.O. on — a customer that you have already met up front or a customer you have never seen? Of course, the answer would be the customer you have already met. No one wants to take a cold T.O.

So what is the best process for early introduction to management? An ideal time would be after the initial profi ling stage, when that salesperson enters the customer’s information into the CRM via a kiosk, at their desk or on the showroom fl oor. At this point, the managers should make themselves visible so that the customer can easily be introduced to the manager. However, anytime before the selection of the new vehicle is suffi cient.

Want to sell more cars in a down market? Try getting involved in the deal early and get into your leadership role. Lead by example, and the troops will follow.

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

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SteveBrazill

IT’S SERIOUS MONEY, GETSERIOUS ABOUT EXECUTING

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NADA tells us the average new vehicle

dealership spent 8.4 percent of its gross profi t on advertising in 2006*. That’s $469 per new unit if you prefer to visualize that way. However you cut the numbers, that’s serious money.

Advertising is a compelling topic that’s outside the scope of this column, but I’d like to get you thinking about how you spend money on advertising. The old joke that “Half my advertising isn’t working — I just don’t know which half” contains an element of truth that should be cause for serious concern. Even under the best of circumstances, and with meticulous execution, advertising is a speculative proposition. Much will be effective; some will not.

I’m going to perform a little arithmetic on NADA’s annual advertising expense for the average dealership and invite you to grab a piece of scratch paper and substitute your numbers. You’ll notice that I assume the average dealer is smarter than the guy in the story who wastes half his advertising. You should use whatever percentage you believe refl ects your performance.

Advertising expense $364,600

Percent that doesn’t work 33% Wasted dollars $120,318 In this example, we see more than $120,000 that never fi nished the journey from gross to net profi t. Every dealer I know would get worked up if an employee embezzled a fraction of that amount. Yet amounts similar to that are forfeited by otherwise responsible dealers and managers year after year.

Advertising does not have to be expensive or brilliantly creative to work. Whatever your budget, your payoff will probably improve if you improve your execution. Execution improves when you balance three key components of success: products, people and planning. Here are some thought-starters:

Product• Stock# 8211 is your oldest unit and you have it in Saturday’s ad with a screaming lease payment. Why is the car hiding in

the back row, behind the fence, in Bird Dropping Heaven? Why not give it a bath and park it in front of the showroom before you go home Friday night?

• You’ve scheduled a coupon for a “Radiator Flush Special” that’s priced to drive business to the service lane. Do you have suffi cient coolant on hand? Did you check the vacation/training schedule for your service advisors and techs?

People• Did you remember to tell your service advisors that customers will show up Monday morning with “Radiator Flush” coupons? Or will they provide better service and maximize the upsell opportunity if you surprise them?

• Did you give your salespeople a heads-up about the vehicles — and deals — you will run in the Saturday morning paper, or are you relying on the “Uh” close? Customer: “I’d like to see the Altima that’s in the paper.” Your salesperson: “Uh — if you know the stock number, I’ll fi nd it for you.” Customer: “Is that payment a buy or a lease?” Your salesperson: “Uh — I don’t know.”

Plan• Do you fi nd yourself struggling to come up with ideas for ads month after month? Try this: Print a full-year calendar on one page, then pencil ideas into the boxes for each month. January is Four-Wheel Drive Month, February is Gas-Sipping Models Month, March is Truck Month and so on. Also note events that happen around the same time every year. NCAA March Madness, Valentine’s Day and Tax Day come to mind. Now you have a planning tool. When Truck Month is 90 days away, you start ordering inventory, planning your ads, making your media buys, arranging POP materials like buttons for everyone to wear that say “Ask me about my Trucks.” When Truck Month is 30 days away, you make sure your salespeople are well-trained on your products and familiar with

competitive makes. When Truck Month arrives, you are ready to execute.

• Have you tried to plan, only to watch your ideas get steamrolled by events beyond your control? Factory incentives, gas prices and other external factors routinely lay waste to the best-laid plans. When circumstances change, adjust. (See preceding paragraph, reread reference to recording plans in pencil.) Your competitors live in the same world. Whoever manages change best earns a competitive advantage.

Effective advertising is essential to success, but a dollar that’s wasted on ineffective advertising has the same impact on your net profi t as a dollar lost by any other means. Get worked up about it. Advertising is one of the 900-pound gorillas on your fi nancial statement. Stop accepting the excuse that waste in advertising is inevitable. Some ads won’t deliver the payback you expected, but don’t compound the problem by failing to execute to the best of your ability. Execution skills are important in every phase of the business cycle. In diffi cult times, execution skills become survival skills.

* National Automobile Dealers Association. (2007). NADA Data 2007: Economic Impact of America’s New-Car and New-Truck Dealers. Retrieved March 1, 2008, from http://www.nada.org /Publications/NADADATA

Steve Brazill is the chair of automotive marketing at Northwood University, Texas Campus. He can be contacted at 866.861.1515, or by e-mail at [email protected].

“Whatever your budget, your payoff will probably improve if you improve your execution. Execution improves when you balance three key components of success: products, people and planning.”

44


DanPage

DON’T BUY ANOTHER INTERNET LEAD UNTIL YOU READ THIS

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If you buy Internet leads for your

dealership, you’re probably only closing half as many deals as you should be. Why? Because the entire Internet lead system is brimming with ineffi ciencies that murder your sales. The good news is that you can turn this around and double your sales. It’s easy to fi x if you simply change a few key processes. First, let’s look at where your Internet Lead system is falling short.

Bad Lead QualityIt doesn’t matter if your lead provider generates their leads organically, works with affi liates or (like most providers) does a mixture of both. You’re always going to get a percentage of leads that are no good. Your ROI on your leads will depend upon how diligently you identify some of these sales-killing issues and get your leads returned for credit on a timely basis. Here are some of the most common lead problems:

• Wrong phone: Certainly the most easily identifi able, wrong phone numbers are a constant problem. These are the easiest leads to identify and return.

• Fraud: This starts getting a lot trickier. Some fraud is obvious (such as movie stars “applying for a loan”), and sometimes the lead will simply say foul things on the phone when you call. If you want to return the lead for credit, you must confi rm the fraud or often your provider will kick the lead back.

• Refi nance: A lot of people are trying to refi nance the vehicle they own (especially now) and are not interested in purchasing a new vehicle.

• Other: Lots of unique issues here, such as leads that want to buy a motorcycle, those who already bought a car (old lead or one that was resold), etc.

Depending upon your lead provider, your bad (returnable) leads can range from 10 percent to 40 percent of all the leads you buy. If you don’t clearly identify why the lead is bad and send it back on a timely basis, you are losing a lot of money.

For example, if you buy 100 leads for $30 a piece and 30 percent of them are bad, that’s $900 that just evaporated — unless you are fastidious about tracking and returning them for credit. Then if 30 percent of the replacements are bad, that’s about 40 leads out of 100 purchased, or $1,200 that just

got fl ushed down the toilet if you’re not completely on top of your game.

But wait, it gets worse. You may not want to hear this, but, the real culprit is not your lead provider; it’s much closer to home.

The biggest Internet lead money loser is your own sales staff.

Trouble at HomeThe biggest single money vacuum in your Internet lead program originates from handing your leads to your sales staff and having them call.

If your salespeople are well-trained and highly motivated, they will do a great job for you at getting people into a car. Many salespeople shine at one-on-one interaction, once the prospect comes to the dealership. But therein lies the problem: Getting the prospect to the dealership.

A typical salesperson will try calling the lead several times, before they give up and go on to the next lead. If they’re honest with you, most salespeople will admit that they hate calling leads. Selling to ups on the lot is their job, and they’re good at it.

Worse yet, what happens when a prospect is a No-Show for a scheduled appointment?

• Will your salesperson call and schedule another appointment?

• How many times will they call if they don’t fi nd the person at home?

• When will they give up?

Truth be told, many salespeople will cherry pick the leads they think are best and ignore the rest. You’ll hear things like “These leads suck,” or some other excuse. That’s why many dealers we speak with who buy Internet leads close between fi ve and 10 percent, maximum.

But it can get a lot better.

How To Double Your Lead ConversionThe key to doubling the number of cars you sell from Internet leads is using a BDC company with agents specifi cally trained in the automotive sales process.

Find The Bad Leads Fast — The fi rst problem a good BDC company will solve is ferreting out all the bad leads, so you

can immediately return them and get them replaced with good leads. This process alone will help you to return up to 40 percent (depending upon the provider) of the leads you purchase. In fact, a good BDC company is worth their weight in gold here alone. You can often get your entire BDC bill paid simply by using them to pluck the bad leads.

Tireless Follow Up — But a good BDC company will not just set appointments for you. They’ll quickly evolve into an indispensable sales partner. Here are some qualities to look for in a BDC company:

• They call every lead (at least) three times per day, at different times, for at least seven days.

• The BDC agent should hand dial every call, and never use the automatic dialer.

• They leave messages for the lead, directing them to call a dedicated 800 number for your dealership that is instantly answered by the BDC agent and scheduled for an appointment.

• They meticulously collect all the information necessary to maximize the likelihood that the prospect will show up for their scheduled appointment.

• They call the prospect back and remind them of their appointment.

• They follow up with your sales manager on a daily basis to fi nd out if the prospect actually showed up.

• If the prospect is a No-Show, the BDC should immediately follow up and reschedule the appointment.

• You should have “real time” access to all results of every conversation between the BDC agent and your prospect. If the prospect refuses to purchase, you should know why, rather than taking the word of the salesperson.

What You Can ExpectIf you employ a highly respected, well-trained BDC company, you can expect your conversion on Internet leads to range between 14 and 31 percent — these results will vary based on dealer inventory. The BDC will pay for itself with the extra sales you will generate due to their tireless follow up, and the reduced lead cost from identifying and sending back the bad leads.

Dan Page is the president of Traffi cPointe LLC. Dan can be contacted at866.922.0175, or by e-mail [email protected].

43


I couldn’t help but notice all the doom

and gloom in several blog posts, especially in regards to Starbucks closing 600 stores. Yes, the economy is tough, but the most important economy is between your ears. If you keep reading about the bad economy and you keep telling everyone how bad it is, you’re allowing yourself to have a bad economy and to perpetuate that it is okay to struggle. The media will do enough of that — don’t help them. Bad economies come faster and stay longer because of media reports that are spread virally by people.

No matter the conditions, you are always in charge and there are always opportunities. I would invite everyone, when someone tells you about how bad it is, to simply reply that you heard about the bad economy but you refused to participate. All the governments, presidents and economic policies in the world cannot make you a prisoner or a victim if you refuse to allow it.

I invite everyone to look at the economy as an opportunity. This is a perfect opportunity to look for additional revenue streams and niches. Replace your daily regimen of TV news, radio news and newspapers with self-improvement material. Learn new skills, read motivational and educational material. Become more valuable to others and money will come to you no matter the economy. The world is an abundant universe. Money is abundant. Money simply shifts and moves towards value. Money is nothing more than a physical form of exchange. Value given, value received. It’s the duty for all of us to perpetually increase our value. The money you make tomorrow will be because of what you did today.

You can read the story of Starbucks and see that 600 stores are closing and see doom and gloom, or you can look at the total Starbucks story and see one of the largest and fastest expansions of any company in history. If Starbucks is smart, they will use this as an opportunity to grow for the future — or, like most big dumb companies, they will think scarcity. The root of the word “scarcity” is “scared.” I would invite Starbucks - and any person - to stop accepting the worst-case scenario. Your mortgage company, grocer or oil company does not care if there is a bad economy. If

you are looking for sympathy, it will only come from others who have decided to become prisoners to the bad economy. My wish for you is to not allow that. My wish for you is prosperity and abundance. The choice is ours. We can choose to win or

choose to lose, but the choice is ours.

Mark Tewart is the president of Tewart Enterprises. He can be contacted at 866.429.6844, or by e-mail [email protected].

MarkTewart

DON’T ACCEPT THE BIG BAD ECONOMY

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