how some dealers are capturing 40+ additional units by …€¦ · · 2013-02-05how some dealers...
TRANSCRIPT
How Some Dealers are Capturing 40+ Additional Units by Selling
Cars On the Service Drive! With
Wade Bergquist, V.P. at Service Turn, a Division of TEGATechnologies
Moderated byMike Bowers, Executive Editor at DealersEdge
Tuesday, February 5, 20131 – 2:30pm ET
A special thanks to Mike Bowers and DealersEdgefor asking me to present today!
Presenter: Wade Bergquist
Director of Dealer Performance
Presentation ObjectiveYour Service Drive is an
absolute “New Car Sales” gold mine.
Selling a new car to just 3% of your service customers will impact gross profits at your dealership by hundreds of
thousands of dollars per year. Some dealers will see gross profits of over a million dollars per year!
I want each of you to get excited about Selling out of your Service Drive. We
are talking HUGE potential and hundred thousands of dollars in gross profits!
What is the key to successful Service Drive selling?
Properly engaging your Service Drive customers.
And today we are going to dive into how it’s done!
And remember the goal…MASSIVE Sales out of your
Service Drive!
How many vehicles should you be selling out of your Service
Drive per month?
Selling a new vehicle to 3-5% of your service customers must
be your dealerships goal.Industry average is .5%
The most lucrative and untapped area at your store is your Service Drive.
Let’s take a look…
Let’s do some very simple math3-5% must be your goal
Take the number of RO’s your dealership is doing monthly
Multiply by 3%
1000 x 3% = 30 cars sold per month 360 cars sold per year
$1,825 gross profit per car = $54,750 per month
$657,000 per year!
Where else at your dealership can you generate such phenomenal
sales results?
Service Drive Selling Undisputed Facts
1. Selling out of the Service Drive is about customer care…not data!
2. Greatest opportunity at your dealership to increase sales immediately / permanently.
3. It’s the most effective way to prevent your competition from stealing your customers.
4. If done correctly…there is no better way to increase your CSI & SSI.
5. Equity mining tools miss up to 70% of opportunities & become flavor of the month.
6. Dollar for dollar this will outperform anything you are currently doing to sell cars.
7. Selling out of your Service Drive is “real sustainable growth”.
8. You are not spending money on advertising to get these customers. • They already know, like, and trust you.
By what percentage have you thought about increasing your sales by this year?
Most dealerships say 10-15%
This % increase is literally sitting in your
Service Drive and easy to get!
Service Drive Loss Sales CalculatorExample Dealership
Monthly Repair Orders Minus InternalsCurrent Gross Profit Per Vehicle RetailedCurrent Vehicle Sales From The Service Drive
1,000$1,825
5100
Closing Percentage
Cars Sold
Overall Increase
Gross Profit
Yearly GP
Additional Monthly GP Performance
Current Sales Conversion Rate 0.50% 5 5% $9,125 $109,500 Your Dealership
1.50% 15 15% $27,375 $328,500 $18,250 ST Below Average
2.86% 29 29% $52,925 $635,100 $43,800 ST Average
3.00% 30 30% $54,750 $657,000 $45,625 ST Above Average
4.00% 40 40% $73,000 $876,000 $63,875 ST Excellent
Service Turn Sales Conversion Rate
Number of Cars Sold Per Month (out the front only)
A 2.5% increase in new car sales out of you Service Drive is a 25% sales increase
at your dealership!
$657,000 per year GP!
THE MOST IMPORTANT POINT OF THIS ENTIRE PRESENTATION:
A 2.5% increase in selling out of your Service Drive will impact overall sales at your dealerships by 20% or more.
As I always say…If I asked you to decrease your
advertising budget by $1,495 per month and you would sell 23 more cars per
month would you?
Results don’t include profit made on vehicles purchased
Tracking ALL results should be done for you by your vendor/partner and automatically
delivered to you via email.
You should be able to compare your results on a local and national level with other
dealerships. If you have more than on rooftop on a program you should be able to compare
your results with theirs. Competition is a VERY GOOD THING!!!!
Tracking results adds accountability to your entire program!
As of today, 2.5.13, this dealership has averaged 18 cars per month or 3.79% CP.
Monthly gross profit average of $30,600Source: monthly dealer composite
2012
What did Bulldog Kia do to succeed that they were not doing before?
1. They are now utilizing industry proven practices, procedures, and
Service Drive selling technologies that were specifically built to sell cars
to service customers directly out of the Service Drive.
2. They’re also aligned with a company who offers consistent training (in-
dealer, on the phone, or via webinar) and whose regional managers are
available at night and on the weekends to answer questions.
3. Because of points #1, #2, they have a great attitude about selling out of
the Service Drive.
What can you the audience learn from the Bulldog Kia experience?
1. Selling directly out of the Service Drive does work.
2. The technologies are available NOW to be successful (simple to use)
3. The Service Drive is the most untapped and lucrative area at your store.
4. Implementation & execution should be easy; heavy lifting done for you!!
5. Proper training and excellent long-term support is critical to the success of a Service Drive sales program.
6. A 2.5% increase in service drive selling will increase overall dealership sales volume by 20% or more!
What a vendor/partner mustBring to the table
1. Personal performance manager (ensures long term success)
2. Walk-in customer integration (TECHNOLOGY NEEDED FOR SUCCESS)
3. Personalized written offer to purchase (TECHNOLOGY NEEDED FOR SUCCESS)
4. On the fly equity calculator (TECHNOLOGY NEEDED FOR SUCCESS)
5. Automated gas savings analysis (TECHNOLOGY NEEDED FOR SUCCESS)
6. Automated maintenance cost analysis (TECHNOLOGY NEEDED FOR SUCCESS)
7. Automated trade up comparison (TECHNOLOGY NEEDED FOR SUCCESS)
8. Automated lease calculator (TECHNOLOGY NEEDED FOR SUCCESS)
9. Month to month agreement10. A money back guarantee
What makes Service Drive selling successful
Process Specific Technology/Data
(15%)
Training & Support(25%)
Process & Procedure
(60%)
Performance Manager
Training videos ensures your staff is well trained
Service Manager’s “Buy-In”:
Service Managers might initially have some concerns about implementing a service drive sales program
because of potential missed revenue. Have NO fear!Understand that 97% of their revenue is 100%
untouched. 3% sales conversion is our ultimate goal.
Service Manager’s “Buy-In”:• ALL RO’s are paid! (The cost of the RO will follow car)
• Easiest job a Service Advisor will ever have! (hand out letter only)
• Incentivize service advisors – (cash, gift cards, et c.)
• 97% of your Service Drives daily business day will be untouched. Your sales conversation goal is only 3%
• When a new car is sold out of service you will not lose the RO on the vehicle that was traded in. You can retain that car for all future service revenue. The car will be sold on your front line an d that customer will bring in the car for service. There is no downside…o nly monetary gain!
All aspects of a Service Drive
program should be laid out for you.
When you need direction a detailed roadmap is always
nice to have.
What Does a “Daily Plan” Look Like?
A daily plan or routine is different for each member of the service drive sales team. Your vendor/partner should have detailed information about each team
members role and how they relate to the over all success the program.
What your vendor/partner must provide to unsure your success
Job Descriptions
Talking Points and Scripts
Call Guides
Daily Routines
Merchandising
Staffing the Service Drive• Selling out of the Service Drive is not about sales. Its
about customer care and presenting options.• The team leader for your service drive sales program
should not be your #1 sales person…quite the opposite.• No new infrastructure should be needed.• Two customer service professionals are needed to work
the service drive + a manager. That’s it!
Service Drive Selling Is So Much More Than Data Mining
• Data mining is not only way too time consuming for your sales people and staff it also misses about 70% of the opportunities.
• We live in a time and have the technology where any information you need about a customer and their car should be automatically delivered to you in a user friendly format when the goal is to SELL out of Service.
• Do you want the data delivered to you or do you want to look for it?
Service Drive Merchandising
(should be done for you)
The psychology of the sale is always important.
Interior Merchandising:
Interior Merchandising:
Interior Merchandising:
Interior Merchandising:
Getting Started:$2,945.00
(one time charge / first month + merchandising @ $1,450)
we charge the 1st month upfront because we are working for you the minute the
agreement is signed. DMS download starts immediately with our programmers.
$1,495 per month thereafter (per rooftop)
(up and running in 15 business days)
Fully Automated Technology:
A closer look
Managers Report:Delivered nightly via email
Reports are delivered on a daily basis at a time that you pre-determine.
No username and passwords are embedded in the link
Integrates with your DMS
Custom filters will only show good opportunities
Integrates those opportunities into your CRM
Trim2.5 Sedan 4D
TransmissionAutomatic, CVT
Engine4-Cyl, 2.5 Liter
Drive TrainFWD
Allows Used Car Manager to identify needed vehicles…show next seven days of appointments
Reduces auction cost
Address4820 William Pen Rd
City, State ZipEaston, PA 18045
Cell Phone(484) 903-6873
Home Number(610) 258-0901
Service AdvisorAshley Fulmer
Sales PersonKaren S Denenberg
Allows for simple appointment confirmation call
Customer Letter
Client Information Worksheet
Written Offer to Purchase
Payment Reduction Analysis
Allows you to isolate customers with equity the day before their appointment.
Ensures your staff is well trained
Eliminates inconsistencies in process and procedures
Showcases best practices to enhance your results
$2,000 $1,450
First Bank
Black
Delivered via email print file per dealer specified time each day
Provides valuable information about your customer
Provides 5 potential reasons they may consider trading in their vehicle.
Customer Letter
Client Information Worksheet
Written Offer to Purchase
Payment Reduction Analysis
Compliments the customer perception of the process.
Ensures every qualified service opportunity is presented with a compelling offer.
Generates additional sales from drop-off customers
Allows all service customers the ability to participate in the Service Turn process.
Allows user to estimate vehicle equity for non-dealership customers.
1N4AL2AP5AN521289
Customer Letter
Client Information Worksheet
Written Offer to Purchase
Payment Reduction Analysis
Customer Letter
Client Information Worksheet
Written Offer to Purchase
Payment Reduction Analysis
$360.30
7
60
09/01/2010
34
$9,359.69
$522.37
2013
Nissan
Altima
2.5
6
$23,410.00
N33115
23,216
09/01/2013
09/01/2015
We are the experts in Service Drive selling:
1. Our CEO has been in the business of selling cars for 25 years.
2. He also owned 8 car dealerships for 16 years.
3. We have not lost a dealer who has signed with us.
4. We are the only company who offers a 90-day money back guarantee! 5. We are the ONLY company that has a Performance Manager & Regional Manager
specifically assigned to your dealership to ensure proper implementation, training, support and LONG-TERM success.
6. The dealers who follow our best practices are averaging over 3% and I will show you the results - industry average is .5%.
7. We are not a CRM!!8. We are not a call center data mining company!!
Everyday you wait to implement a Service Drive sales program…
your service customers are exposed to your competitors
You have customers in your Service Drive literally everyday who are in the market for a new car and will buy
(the same day) if they are properly engaged!
Don’t let them leave, hear an advertisement or get a piece of direct mail from a competitor and lose the sale.
If you don’t sell double your investment in the first 90-days we will refund your investment 100%
NADA 2013
Booth #4482 at the NADA Convention
Contact Informationwww.serviceturn.com
Wade BergquistDirector of Dealer Performance
888.702.8350 – office949.533.0062 - mobile