autosuccess nov08

It’s Coming — AutoSuccess Best of the Best NADA 2009

November 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.

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OBJECTIONS EQUAL DESIRE

SteveBrazill

TomHopkins

PaulCummings

SusanGivens

JoshuaMuller

CREATE THE BIG MO - USING THE BIG “O” APPROACHSix Powerful Sales Links

StephenR.Covey

LIGHTS! CAMERAS! ACTION!Vehicle Videos are Proven Sales Tools on Dealership Web Sites

MarkProctor

JasonBlair

MUDDY WATERS

IT IS TIME FOR A LEADER

AlexBravy

JimAdams

DalePollak

SeanV.BradleyINTERNET SALES 20 GROUP XI

MORE TIME FOR RED FLAG COMPLIANCE

SEARCH ENGINE MARKETING 2.0How the Next Generation of Search Delivers More Leads with Smart Bidding

and Inventory That Sells Itself

BEYOND THE PERFORMANCE REVIEW

WHO SET THE PERFORMANCESTANDARDS IN YOUR DEALERSHIP?

CHOOSING THE RIGHT SPECIAL FINANCEINTERNET LEAD GENERATION PARTNER

IT’S TIME FOR A DECISION

BrookeSamplesFORECASTING - NOW MORE THAN EVER

LarryCochranWALT MASSEY AUTOMOTIVEBringing in Big-City Numbers in Rural Mississippi

MattBakerDOWN TIMES FAVOR THE BOLD ADVERTISERS

JohnBrentlingerLEADING IN DIFFICULT TIMES

PaulSniderSEVEN LAST WORKS OF A DYING COMPANY

FrankFurgiueleSERVICE MANAGERS BOOST TRAFFIC, GENERATE $2,000 ROs WITH FOCUSED DIRECT MAIL STRATEGY

INCREASING THE BOTTOM LINE JeffJames

FROM NO TO YES MarkTewart

GET LEAN AND MEAN – CROSS-TRAIN YOUR MACHINE MarcSmith

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www.autosuccessonline.com

TomHopkinsSTS

OBJECTIONSEQUAL DESIRE

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Early in my selling career, I had this

dream. In it, I met a married couple to offer my product — and they were so wonderful. They thoroughly enjoyed my presentation. They agreed to everything I mentioned. They didn’t ask any questions or give any objections. The whole transaction was completed and in record time. They approved everything, gave me several qualifi ed leads and thanked me as they left my offi ce. What a wonderful dream! Somehow, I don’t think I was alone in having a dream of that sort. Most new salespeople think that’s what selling is like. Unfortunately, some veteran salespeople keep looking for that dream to come true, as well, and it holds them back from achieving the level of success that’s possible with a bit of education.

I begin every seminar by reminding my students that there are seven steps in the selling process:

1. Prospecting2. Original Contact3. Qualifi cation4. Presentation5. Handling Objections6. Closing 7. Getting Referrals

Please take note that handling objections is a step. It shouldn’t come as a surprise to any salesperson.

Understanding how to handle objections is critical to your success. But, before we go any further, let me help you change your perspective about them. When you hear the word “objection,” do you think of lawyers jumping out of their seats on television? They’re effectively stopping the forward movement of a trial. It’s an interruption.

It’s human nature to object, hesitate, stall or procrastinate when making any decision that impacts our money. We have

to feel absolutely confi dent that what we are replacing that money with will give us all the benefi ts we want. I know that’s true about me, so why should I expect my prospective clients to be any different?

My success rate in sales increased tremendously when I came to expect to hear concerns instead of fearing them. When I began to listen for them, to anticipate their arrival, I was amazed to learn that I was hearing basically the same three or four concerns in nearly every situation. That’s when I began doing some serious analysis. I spent a few hours thinking about each of those concerns. What could I do or say to help them get comfortably past these points?

I began by putting myself in their positions and discovered most prospects were objecting because of one basic emotion that was being triggered — FEAR. They were afraid to make an irreversible decision. They were afraid to make a commitment with their money. They were afraid the product wouldn’t live up to their expectations. They were afraid I was a “take-the-money-and-run” salesperson whom they’d never be able to reach again when they had questions about the product after they owned it.

You see, concerns are defense mechanisms. They are ways for clients to tell you you’re moving too fast and that they need more information before they can feel confi dent about going ahead with the vehicle.

I teach two “don’ts” and one “do” for handling every concern.

• DON’T argue. If this sounds silly to you, good. You already know this. But, even though you know it, do you fi ght with them in the back of your mind? If you do, eventually it will begin to show. When potential buyers object, they’re asking for more information. If salespeople get upset, sarcastic or apply

pressure, they’re killing the sale.

• DON’T attack when you address concerns. Learn to develop a sensitivity as to how your prospects feel, and show your own concern for helping them, not a determination to prove them wrong. If you fi ght their feelings, their negative emotions will take over. Defense barriers go up and you have to work twice as hard for their business.

• DO lead them to address their own concerns. A true professional always tries to help prospects answer their own objections. Most prospects will do just that given time and a little more information. After all, deep down, they want to go ahead. They wouldn’t waste their time objecting to something they didn’t want to own, would they? So, your job when you hear a concern is to ask the client to elaborate on it. Say something like this, “Mrs. Smith, obviously you have a reason for saying that. Would you mind sharing it with me?” This will get her talking about what’s behind her concern. Once you understand what’s really holding her back, you’ll be able to address that issue.

In many cases, when clients do elaborate on what’s bothering them, they’ll talk themselves right through the concern and set it aside without you ever having to say anything. Oftentimes, addressing a concern only involves reviewing points you already covered in a summary of your presentation.

The key is to stay calm and keep questioning what’s holding them back in a gentle, concerned manner until you fi nd the real concern. Then, you address it and move on to closing the transaction.

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

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The addition of vehicle videos as a

compelling component to dealership Web sites continues to grow at a steady rate. At the same time, the public’s interest in video sites on the World Wide Web overall continues to blossom and shows

no sign of abating. Yet, in the eyes of many dealerships, these trends alone are not enough to convince them to make the investment in vehicle videos, and some still question what investing in vehicle videos would bring to their business.

Videos are ‘Sticky’Research shows that using video on a Web site increases the amount of time a consumer spends on the site – making it “sticky,” and increasing the likelihood the consumer will submit a sales lead that ultimately can translate to the bottom line. And that’s the point: Dealerships want their Web site to act as one more calling card for the dealer and for doing business with them.

Videos are PersuasiveRecent studies by Burst Media also show that nearly 55 percent of online shoppers indicated that a vehicle video made them more likely to consider buying or leasing a model featured in a video. And, unlike traditional marketing material, video has a very high pass rate from user-to-user.

A Web site’s success is measured in part by how long customers stay on the site and how many leads are generated from it. Adding vehicle videos provides dealerships with a tool through which to share vehicle information with online customers in an engaging way, and in a way that has been proven to infl uence more than half of them in the purchase decision they make.

When considering vehicle videos for your Web site, here are the basics to look for:

• Vehicle videos should be short and contain concise, engaging content.

• The videos should be refreshed frequently, with new feature cars added in place of those that have been posted the longest.

• Use actual video footage that shows the vehicle in real-life motion, rather than pictures with a moving camera, to keep your customers engaged in the video presentation.

• Allow your customers to start the video themselves; it shouldn’t begin the moment the page loads.

Videos can be a fantastic way to interact with your customers, allowing you to effectively convey messages to them without an over-the-top sales pitch. Video is here to stay. Video is growing. Is your Web site ready for some action?

Joshua Muller is the product planning manager for Reynolds Web Solutions. He can be contacted at 866.386.0702, or by e-mail at [email protected].

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MSJoshuaMuller

LIGHTS! CAMERAS! ACTION!Vehicle Videos are Proven Sales Tools on Dealership Web Sites

BrookeSamples

FORECASTING -NOW MORETHAN EVER

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MS

What do you want your business to

look like in 2009? Close your eyes and visualize. Lots of happy customers? The right inventories? Fabulous bottom line? Is your vision one your employees can rally around and do whatever is necessary to achieve? Then use a good forecasting process and make your vision a reality. Forecasting is about setting those big goals and then creating the passion in your employees to embrace and implement the steps necessary to reach those goals.

We recommend starting at the bottom – how much does the dealership want to make in 2009? Out of that, how much will each department need to contribute? How will the departments achieve those numbers? What has to be done differently next year to achieve those numbers?

We suggest holding at least three meetings with your managers. The fi rst will be to explain the process and establish the goals for the dealership and for each department. Due to the crossover between departments, we suggest the second meeting be used to exchange information and present any additional ideas relating to expense reduction. Departments will need to share their forecasts. For example, the service department needs to know how many new and used vehicles the sales department expects to deliver so the service department can forecast how much gross profi t new vehicle inspections and internal labor will generate. This shared information will solidify your forecast.

Your future depends on your employees taking ownership of their role in the forecast; from the department managers to those people directly responsible for generating sales, controlling expenses or maintaining assets at optimal levels. Every one of your employees should play a role in the vision. All of your employees should know how many vehicles you want to sell, what CSI score you want to reach, how many vehicles service can handle, etc. And then the employees need to know how they can help reach those goals.

Start with your sales goals. Quantify your expectations with your salespeople — vehicle, fi nance, service, parts and collision center. They need to know what

you are looking for and how much they are individually expected to contribute. But, more importantly, show them how reaching their numbers will impact their lives. The average technician turning just fi ve more hours a week can generate an additional $5,000 more per year in personal earnings. Show your vehicle salespeople how just selling two more cars a month will add thousands of dollars to their paycheck by the end of the year. But don’t settle for just numbers – demand plans and evidence to support the forecast. You can’t just say you’re going to sell 100 vehicles a month and expect it to happen. If that was the case, then why not say you’re going to sell 200 vehicles a month? Your fi nal forecasting meeting is for your managers to solidify their commitment to departmental forecasts and action plans. Remember hope is not an action plan.

Once you’ve settled on the 2009 forecast, make sure your managers are prepared to break down the numbers for each employee weekly and that there is a plan in place to review this information weekly with the employees. If a tech is falling short from his assigned goal of hours produced, determine what is stopping him from reaching that goal. It is better to fi nd out early in the month what the problem is than to wait until the end of the month. Listen to your employees and they will provide you with solutions for reaching your forecast.

Keep in mind your forecast is not set in stone; there are so many variables, including economic fl uctuations or major changes introduced by your manufacturer which could heavily infl uence your actual performance. If it becomes necessary, you may need to re-evaluate your forecast and take whatever steps are necessary to put your dealership back on a winning path.

Remember your vision. What better time to make commitments to your employees and to your business than today? Start planning your forecasting process, set big, heroic goals and be ready for 2009.

Brooke Samples is the director of Dealer Service Corporation, a division of NCM Associates. She can be contacted at 866.618.8377, or by e-mail [email protected].

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the #1 sales-improvement magazine for the automotive professional

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SusanGivens

Search EngineMarketing 2.0How the Next Generation of Search

Delivers More Leads with Smart Biddingand Inventory That Sells Itself

For many Internet managers at dealerships, it’s the great experiment: search engine marketing (SEM) and search engine optimization (SEO). Some love it, others are wary of it or don’t understand it, and others avoid it altogether.

The fact is, SEM works. Answer honestly: Do you think the vast majority of your customers do some online research before stepping foot onto your lot? In today’s competitive market, dealerships need to be using every tool on the Internet to help these customers fi nd them. If not, they get left behind.

It’s powerful, but SEM isn’t an easy tool for dealerships to pick up and use. The biggest problem most Internet managers have with SEM is the time involved with setting up their own campaigns. It’s not rocket science, but the volume of data that must be sorted through, combined with updating content, reacting to trends and metrics and manually removing or adding keywords to campaigns, all add up to a labor-intensive job. Unless a dealership can allocate a full-time, dedicated staff to running SEM campaigns, they will more than likely fail.

To avoid this, many dealerships have hired third-party fi rms to create and manage their SEO/SEM campaigns. The biggest problem with this strategy is these companies are not fully a part of the dealership’s Web team. Without knowing the dealer’s Web site structure or inventory feeds, third-party fi rms can’t immediately update campaigns to refl ect what the dealership is attempting to promote or sell. Another downside is that most of the links from

ads take the customer to the dealership’s home page, rather than deep-linking directly to a page that contains the information they are looking for.

Also troubling, many fi rms don’t tell dealers where their money is being spent. Dealerships have the right to know where every dollar is being spent, what percentage goes into the search engine and what percentage the fi rm is taking, as well as how much is being spent on all the different campaigns.

Fortunately, the next generation of SEM has arrived. From this point on, dealerships can easily set up and manage effective campaigns that will not only increase the number of leads, but signifi cantly lower the average cost-per-lead. Also, and just as importantly, these leads will close at a much higher rate than traditional third-party leads, because the SEM ads that generate the leads are very targeted and specifi c. So what exactly is this new generation of SEM?

TotalControl DOMINATORTM (TCD), created by Dealer.com is an application created to deal with the most common problems dealerships experience when implementing SEM programs. Unlike anything else on the market, it incorporates a “big brain” of SEM data that has been gathered from dealerships all over the country. More than just an interface, this “brain” tracks trends and metrics, and allows dealers to create effective SEM campaigns in minutes.

SEM is now elevated to a new level with the following features:Smart Bidding — Getting the Right Words for the Right Price

Google and other search engines keep track of which

keywords get the most click traffi c, then provide tools to help dealers optimize the number of clicks. The only problem is that search engines focus on click volume and not on return on investment (ROI). How many of those keywords convert? What is the ROI for each keyword? You can now have the answers to these questions with advanced performance analytics that dealers can use to determine the exact value of each keyword in terms of dollars generated rather than simply the number of clicks.

For example, say that “2008 Ford Mustang” gets 50 clicks and “Ford Mustang windshield wiper” gets 1,000 clicks. Even at equivalent conversion rates, the value of selling a car is much higher than that of selling a wiper. But blind search engine optimizers don’t know that, and would bid up the term with “windshield wiper” in it. However, the application’s Smart Bidding “brain” knows the difference, because it connects the click expense directly to measurable revenue. Smart bidding is return based, not click based.

Deep Linking — Putting the Customer Where They Want to BeTCD creates ads that deep link to the correct areas of a dealership’s Web site or microsite. If a person is searching for “brake service Atlanta,” most SEM ads will take them to the dealership’s home page rather than directly to the service page. Statistics show that when customers click through to a Web site, 25 percent will leave after only two clicks. Ads that deep link to the relevant content will retain many more users than traditional SEM ads.

Automatic Inventory Ad Updates — Keeping Up to Date with Your InventoryEveryone agrees that having ads to target specifi c inventory is a great idea. If someone types in “2006 Nissan Altima” and a dealership has several on the lot,

connecting users directly to the inventory page will result in higher conversion rates. Keeping SEM ads current with inventory, however, is the problem. It’s challenging enough for many Internet managers to update inventory listings every day, let alone having to notify an SEM vendor or spend time creating new SEM ads.This is no longer a problem. TCD automatically updates a dealer’s SEM campaign strategy based on inventory feeds it receives from a dealership’s system. So if a dealer sells that 2006 Nissan Altima and it’s taken out of the inventory, that night the SEM ad with those key words will automatically be turned off. The dealership will not waste a single dollar on a click-through from an outdated ad, which translates into extremely effi cient and targeted ad spending.

Call Tracking and Recording — Who Called, and For What Product?TCD provides a new level of phone tracking so dealers can see detailed ROI for every dollar spent. For each SEM campaign, the system assigns unique phone numbers to every search engine for the sales, service and parts departments. That’s at least 15 unique phone numbers for every campaign. This leads to a better understanding of the value each search engine provider brings to different campaigns.

Integrated Lead Management — Tracking Your CampaignTCD’s lead management tracking system

provides full life-cycle tracking of every campaign, from the fi rst

click-through to sales. It’s fully integrated into the system so a

dealer can see exactly how much revenue every SEM ad generated.

Automatic Refreshing of Ad Content — Keeping it Fresh

Every week, the system monitors all updates made to

a Web site; including content, inventory, specials, new models,

new information on vehicles, etc. Then, it automatically refreshes keywords list with Google.

Maximum ROI — More For LessThe newest version released earlier this year has already yielded spectacular results. Dealers who have implemented it see, on average, $8 leads from their own Web sites. That’s an average — in many cases lead costs are even lower. Additionally, fi rst-party leads close at a much higher rate than other leads. Compare that to the $20 to $30 per lead costs and lower closing rates of third-party lead providers, and TCD truly does become a “no brainer.”

For More information on Dealer.com, contact us at 866.859.6410, or by e-mail at [email protected].

Setting the Standard inSearch ExpertiseNever content with just “good enough,” Dealer.com set a goal of becoming the automotive industry’s best SEO/SEM provider. To back up this claim, the company became a Google AdWords Authorized Reseller Partner. In addition, 45 percent of Dealer.com employees have received one or more of the following certifi cations:

• Training Certifi ed on Google AdWords

• Sales Certifi ed on Google AdWords• Account Management Certifi ed on

Google AdWords

The advanced certifi cations require more than 15 weeks of intensive study and rigorous testing. More than 90 Dealer.com employees in technical development, engineering, Rapid Response support, sales and marketing and the entire search and account management team have received the advanced certifi cations. Google trainers continue to work closely with Dealer.com to provide ongoing training and ensure the team stays current with the latest trends and changes.

What does that mean to a dealer? The difference between hiring a certifi ed professional vs. someone who does not know how to design an effective SEM campaign can cost dealers hundreds, if not thousands of dollars per month.

SEM Best Practices:• Spend money on advertising while the

dealership is open. Statistics show that nine out of 10 potential customers pick up the phone when they see an ad, while only one out of 10 customers send an e-mail or fi ll out a Web form. If the dealership is closed when that customer calls, they may never get the lead.

• If you see a competitor running a special on a particular make/model, and you know you can beat the price or special, here’s a tip: Create an instant SEM ad promoting a special for the same and/or similar make/model. If a customer sees your competitor’s ad and goes online to search for information about the dealer, your ad will also appear promoting the same or a similar special — and you may just get to capitalize on your competitor’s advertising.

• Know Your Invoice. A lot of solutions come with hidden fees, which have the potential to drive your cost-per-lead rates sky high. You should have control over your spend and be able to track results, as in phone calls and e-mail submissions, so you can see the leads generated for every dollar spent. Your dealership should be aware of the profi tability and effectiveness of your SEM strategies.

• Take advantage of Google. Google possesses 70 percent of the market share, which means your SEM strategies must utilize the great advantage Google can offer your SEM, as well as your dealership. In addition, you should submit your business to the Google Local Business Center so your dealership shows up on Google Maps, and also in the “Local Business Results” section at the top of search results pages.

JimAdams

IT IS TIME FOR A LEADER

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Did you ever wonder why a

commercial airline pilot makes so much money? I can tell you that it is not because they can take off in Tulsa and land in Kansas City. It is not because they can show up on time and they look good in a pilot’s uniform. It is because when things get tough and something unexpected happens, they are up to the challenge. The true test of an airline pilot is not when the winds are calm and the visibility is 20 miles. The test is in the turbulence and the thunderstorm.

This past year has created challenges for us all. You cannot turn on the television without hearing some pretty bad news about our industry. I have been in the retail automotive industry, on the front lines for nearly 20 years and I have heard bad news before. I have seen dealerships fail. I have seen every single dealership in Joplin, Missouri change hands in the past 10 years except one. I have a crystal clear understanding of my job responsibility. I am the leader. People mirror other people’s behavior. Just as the airline pilot, my test is in the turbulence and the thunderstorm. My test is in the calm assurance that if I just follow my training and react to my professional instincts, I will be able to put my dealership in the position to prosper. Zig Ziglar once said that no matter how bad times are economically, that there are

people that will fi nd a way to prosper. He also said that no matter how good times are, there are people that will mess things up royally. Face the facts: Some dealers will not survive. Those dealers who do not focus on training and award-winning customer service will be doing something different next year. It is truly time for a leader. My question is: Are you that leader?

1. Stop WhiningYou are a leader. Leaders must be optimists. You can be a realist and an optimist at the same time. Your people are looking to you for direction. They do not need you telling them how bad things are. They are looking for you to show them the way. Empathize with the present condition, but give them hope that with the right plan everything will come out in the end.

2. Make a DecisionYou must decide not to participate in the current crisis. Remind your salespeople every day that sales is a numbers game. Each salesperson does not need to fi gure out how to sell 20 cars. They just need to fi gure out how to talk to three people today. Focus on the activity, not the result. With the right activity, the results will follow. Remember — leaders are where they are because most people are not willing to make a decision. Make a decision to focus on daily activities.

3. Make a PlanMake sure you have a mapped-out daily, weekly and monthly plan to generate the amount of opportunity that you must create to be successful. Make sure that each member of the team is completely bought in and accept zero slacking. Your people are looking for a leader, and leaders have a plan. They will follow you if you are competent and confi dent.

4. Pay the PriceNo one promised you it was going to be easy. If you are looking for the easy work, you chose the wrong profession. Leaders work smarter, leaders work harder and leaders do whatever is necessary to succeed.

You are in the position that you are in right now because someone had the faith and confi dence that, no matter how tough times were, you would fi nd a way to succeed. If you are a dealer reading this article, your employees and their families are counting on you to lead them. If you are a sales or service manager, every employee is counting on you for direction. They are looking to you for answers. Can you provide them?

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

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INTERNET SALES20 GROUP XISeek fi rst to understand, then to

be understood. This eight word statement can mean the difference between a sale and a blown opportunity. The No. 1 reason why prospects don’t buy a car is because they are landed on the wrong vehicle. And whose fault is this? The salesperson’s. The salesperson didn’t take the time to do due diligence and properly qualify the prospect. We are taught as salespeople to take and keep control of the conversation and lead the customer, rather than listening. We prepare responses even before the customer is through speaking. We portray ourselves to care about what the customer is saying by nodding our heads, when, in reality, we are waiting for the customer to stop speaking so we can implement a closing statement (“Want to take it for a spin?”).

The main objective of any successful business is to exceed a prospect’s expectation(s). But how can anyone meet or exceed the “unknown”? If a salesperson does not take the time to fi rst establish the customer’s wants, wishes and expectations, how on earth are you ever going to exceed them?

For the past 10 years, I have been building Internet Departments and BDC’s all across the United States and have come across the same misinformed assumption — “The only thing people are looking for on the Internet is price.” In fact, statistics show that only 20 percent of people who shop online are solely price motivated. So what are the other 80 percent looking for?

• Availability, Convenience, Research, Hate car salesman / Looking for a different way to do business.

Dealers are consumed with the inaccurate fact of price being the sole reason why people are going online, and the result is that dealers don’t qualify their prospects properly. The dealer assumes he or she

knows what their prospects want, and that means low grosses.

Let me give you an example. Let’s take the most competitive market in the United States — Detroit. One of my client’s, Dick Genthe Chevrolet averages $1,800 a copy on the Internet. There are over 42 other Chevrolet dealerships within a 20-mile radius of their store. If that wasn’t amazing enough, they make more gross on the Internet with their used car initiatives. They broke the negative paradigm of assuming all people were looking for was price. They also stopped stressing the 40 + dealerships around their store and what they were doing. They began focusing on their own prospects and the factors they actually have control over — “circle of infl uence” versus “circle of concern.” They focused on taking the appropriate steps to “qualify” their prospects.

To be the best, it isn’t enough to just meet your customer’s expectations; you must exceed them. You must supply them with some validity as to why they should buy a vehicle from you rather than your competitor. This is done with their dealership’s value package proposition. This means they sell the “sizzle” of why the prospect should do business at their dealership. Specifi cally, what is their differentiator from all of those other 40+ surrounding Chevrolet dealerships.

Here is a simple qualifying question you can ask your prospect: “Have you ever purchased a vehicle online?”

If they say “Yes,” follow with, “Great, where did you purchase that vehicle, and what did you like about that experience?” Whatever they respond with, make sure your dealership does that too.

Then you transition to your value package proposition.

If the customer says “no” to your question “Have you ever purchased a vehicle online?” then you would ask the “true” qualifying question: “What were you looking to accomplish by going online?”

They will tell you exactly what they were looking to accomplish and what their expectations are. Remember the top fi ve reasons why the customer is going online to begin with: price, availability, convenience, hate car salesman/looking for a different way to do business and research.

Think about it: If you ask someone what they were looking to accomplish by going online and they respond with “convenience,” it really doesn’t make much sense to jump to price (and with most dealers, that means invoice). It would make more sense to structure your presentation to sell all of the convenience you and your dealership can provide, such as fi lling out most of the qualifi cation paperwork via fax before the customer arrives or taking a demo over to them for a test drive during the customer’s lunch break and so on.

Seek fi rst to understand, then to be understood. In sales, it makes no difference whether you are on the showroom fl oor or in the Internet department. Salespeople are too quick to splurge information to a prospect and they do not spend enough time qualifying them by trying to identify their wants, wishes and expectations. In reality, a customer will sell themself if you listen hard enough. I strongly suggest that if you want to sell more cars, more profi tably and more often, you practice your listening and qualifying skills. Don’t just hear your prospect; understand your prospect.

Sean V. Bradley is the founder and CEO of Dealer Synergy, a nationally recognized training and consulting company in the automotive industry. He can be contacted at 866.648.7400, or by e-mail at [email protected].

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StephenR.Covey

BEYOND THE PERFORMANCE REVIEW

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In my town, there’s a lawn service that comes by three or four times a year to examine the grass for diseases, apply a little fertilizer and some other treatments to keep things going, and after about 10 minutes, head off to the next lawn.

This also is how performance evaluations are generally done in most organizations. Every year or so, the boss does a performance review on the employees. We get checked off on a 10-point scale or some other device. The boss drops a little encouragement on us — or some other treatment — to keep things going. It takes about 10 minutes, and then we can all get back to work.

The annual, semi-annual, quarterly or whatever performance review is universally disliked. Employees are confused, because they don’t understand what they’re being evaluated on. Bosses hate doing it, because they don’t believe in the process, and they fear the confrontations that sometimes arise.

The old notion is that the leaders evaluate people’s performance, sometimes using a set of subjective criteria that is sprung on them at the end of the reporting period. This, of course, is absolutely insulting, which is why so many managers themselves don’t get good performance scores from their people.

The old-time performance review has become a meaningless ritual, a holdover from the Industrial Age mindset of treating people, like interchangeable parts in a

machine. If you’re a business leader in the 21st century, you know that employees are by far your most important asset to your dealership. You treat them as volunteers, just as you treat customers as volunteers, because they choose to volunteer the best part of themselves — their hearts and minds — to your dealership. And they have more choices than ever about where and what they will volunteer.

I was in a group once where someone asked, “How do you shape up lazy and incompetent employees?” One man responded, “Drop hand grenades!” Several others cheered that “shape up or ship out” approach to supervision. But another person in the group asked, “Why don’t you do that to your customers? Just say, ‘Listen, if you’re not interested in buying, you can just ship out of this place?”

He said, “You can’t do that to customers.”

“Well, how come you can do it to your employees?”

“Because they work for you.”

He answered, “Are you kidding? You can’t fi nd good people these days. There’s too much turnover, disloyalty, absenteeism, moonlighting — people just don’t care anymore.”

The top leaders of the 21st century realize that the implied contract between supplier and customer also is in force between the leaders and the led. A customer comes to you to buy a vehicle, for value. If you’re

smart, you will understand as much as you possibly can about that customer’s idea of good value — about the “win” for the customer. The same is true of salespeople. Intelligent leaders seek to deeply and accurately understand the “wins” for their sales staff. Instead of reviewing performance, they sit down with their salespeople and make “win-win agreements.” The salesperson defi nes what the win is for him or her, and the leader defi nes what the win is for the dealership.

A win-win agreement always contains the same basic elements. First, you defi ne together the goal of the agreement — the desired result. Then you defi ne, again together, the guidelines, resources and accountability mechanisms you will use — that is, how and when you will account for progress on the goal. Finally, you defi ne the wins for both of you if you achieve the goal — and the consequences if you don’t.

Developing win-win agreements is the central activity of good leadership. Employees manage themselves within the framework of the agreement. Leaders keep the resources fl owing and the pathway clear. And when it comes time to do the performance review, there’s no longer a visit from the lawn inspector. The employees evaluate themselves.

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].

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JasonBlair

MORE TIME FOR RED FLAG COMPLIANCE

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The FTC has announced that the

mandatory deadline for meeting the Red Flag Rule has been delayed until May 1, 2009 (the deadline was to be Nov. 1, 2008). While this gives dealers some breathing room in creating an identity theft prevention program, putting it off and gambling that the FTC will never come to your dealership to check isn’t a good idea. The odds may be on your side, but know this: You are risking a great deal.

The fi ne that the FTC can levy on a business that has violated this federally mandated law is $2,500 per “knowing” incident. “That doesn’t sound that bad,” you might be thinking to yourself. “I mean, it’s a tremendous hassle to put this identity theft prevention program in place — I’ll just pay the fi ne instead.” What you may not understand is that what the FTC is defi ning a “knowing” violation as every fi nance or lease deal that takes place after the deadline. So, say you sell 100 cars a month and you fi nance 50 percent of them. That’s 50 “knowing” violations. Multiply that by $2,500, and you know why this is a bad risk idea.

Now you may be asking yourself, “I need a Red Flag solution for my dealership, but I don’t have the resources to put it together. Where do I start and what do I look for?”

When looking for a Red Flag solution, dealers should look to address some of the tougher and more time-consuming aspects of compliance, such as:

• the process and time involved in developing the required identity theft prevention program.

• assessing your business risk level when it comes to identity theft (in all locations)

• the training of all necessary staff• improving overall dealership knowledge

with informative data to assist the staff in detecting Red Flags in their dealership

When all is said and done, a careful approach should be used when choosing an outside vendor to service your Red Flag needs. A company may tell you that they have a Red Flag solution for you, but if they do not offer you a turn-key solution or means of building your identity theft prevention program, then you will not be compliant with the Rule. There are systems out there that assist you in identifying potential Red Flags, some of which are great

tools, but will not make you compliant.

Pay attention to what is out there and remember your dealership’s livelihood is at stake. Do not ignore this mandate; start your identity theft prevention program now and do not forget to train your staff appropriately to

look for potential Red Flags in your business.

Jason Blair is the president of Dealerspan LLC. He can be contacted at 866.618.8235, or by e-mail [email protected].

Are you in or out? The decisions you

make now will determine your future or create a self-fulfi lling prophecy. You, and only you, will decide to stay and fi ght the good fi ght with the tools needed in a down market, or throw in the towel and walk away.

Every previous downturn from the 70’s oil embargo, to the 80’s interest rates to the 90’s over-saturated market has produced stronger dealers. Now is the time to invest in your people and your future.

You do not build a business. You build an organization of like-minded people who builds your business and customer base that supports you through the toughest times. There will be 13 million vehicles sold this year. The question is: How much of your “unfair share” of the market are you going to capture or give to the competition?

For years, most dealerships have had one common complaint: “I can’t hire good salespeople.” How many times do we hear that and other misconceptions in our business? There has never been a better time to recruit and train quality people looking for an opportunity. There were 159,000 people who lost their jobs last month? I think that was just in the car business. All kidding aside, it is tougher now than it’s ever been and might get worse before it gets better. The good news is that you are sitting on a gold mine. You have to sow the seeds now to reap tomorrow’s benefi ts.

Hire the right candidates; train and pay them. Sound too simple? It’s not. If a salesperson does not succeed in our business, it is not their fault. It is our fault. We hired the wrong person to begin with, did not provide the proper training or did not pay them fairly. If we do not pay a person worth keeping, someone else will and capitalize on your generosity to train salespeople for them.

MarkProctor

In 1975, the dollar amount estimated to train a new sales person was $7,500. A large portion was the amount of business lost due to rookie mistakes of not properly qualifying, taking short cuts, etc. I believe the amount was actually higher then, and it is hard to comprehend the cost today with many dealerships’ staggering turnover.

Many consultants blow in, blow off and blow out with your hard-earned dollars providing a few minutes of motivation followed by a “let down” when measurable results are not achieved. We then ask ourselves if the money could have been utilized more effectively. Whether you sell 50 a month or 500 a month, the only question is how much do you keep at the end of the day.

A few years ago, someone thought you could and should sell cars like stereos. That did not work out quite as expected and business plans were modifi ed. Great ideas are a dime a dozen. Implementation is everything. Why do we keep trying to reinvent the wheel? Cars are sold one at a time. This business is built on relationships.

We are blessed to be in the greatest business in the world. Most of the people we know will be in the market for a new or used vehicle. There is also a pent-up demand from people waiting for the next big thing. News fl ash: There is no next big thing. What they have not found is a “transportation specialist” and “dealer for life.” You will never have customers for life without salespeople for life.

The most important thing we have to change now is how we recruit, train, motivate and pay our people to create the buying experience we require for our customers. They go hand in hand. The buying experience is what separates us from the competition.

Our competition is not between Honda or

Toyota, any manufacturer or dealership. Our competition is the salesman down the road with his hands in his pocket spouting the infamous greeting “Can I help you?”

During a downturn, the best dealers survive, capitalize on what they have and prepare for better times with the help of the best consultants, trainers and information available. However; tough times also generate a deluge of snake oil salesmen — who have never run a successful dealership or managed a department — offering the latest and greatest gimmick, promotion or idea or offer a team of unknowns to do it for you. There is too much at stake not to know who your partners are or who is in your store.

We can never be better than the people with whom we surround ourselves. If you are considering a consultant, marketing or sales training group, be sure to ask “What qualifi es you to tell me how to run my store?” Pick your partners carefully. Working with someone who actually understands the car business and needs of the dealer will pay huge dividends in the end without headaches and surprises later.

You will never save yourself into a profi t. You have to sell yourself into one. Surround yourself with the right people and you will be able to survive market downturns and the occasional bump in the road. There is an old saying: If you always do what you’ve always done, you will always get what you’ve always got. Not today. You will not get a fraction of what you did in the past. It is time for a change. Make a decision. Are you in or out?

Mark Proctor is the president of Preferred Dealer Services, Inc. He can be contacted at 866.922.3541, or by e-mail at [email protected].

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IT’S TIME FOR A DECISION

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CREATE THE BIG MO - USING THE BIG “O” APPROACHSix Powerful Sales Links

If you sound just like everybody

else when you talk, then guess what? You probably are just like everyone else in the eyes of your customer. So many salespeople are still mired in the tired old language pathways of the mid-1960’s era of selling when “If I could, would you” was good enough. Or the error of the 70s, when you could get by with memorized selling scripts like the “Ben Franklin” Close. Don’t get me wrong, I learned them all, I used them all and I made a ton of money doing it, too. Here is the brutal truth, though: Those days are dead and gone, and so are those techniques.

One fact hasn’t changed: Selling is not a combination of haphazard ideas. It truly is an art and science that must be refi ned and mastered through years of deep study and intense practice. This hasn’t changed, but the sales language we must study, master and deliver has changed dramatically, as the balance of “knowledge power” has shifted from the sales associate to today’s more educated consumer. Bill Gates and the young kids at Google and other emerging Internet companies have made sure everyone has access to the knowledge they want, need and desire. This fact demands from sales professionals a more professional, service-based, customer-friendly and individually unique approach to selling.

When the selling language detailed below was introduced to a very successful automotive group in Ohio. Ed, their director of training, noticed and immediate improvement in their sales results. He reported the most amazing part of the quick transformation was the high level of enthusiasm demonstrated by his team regarding the use of the techniques. Even their most experienced salespeople loved the opportunity to use words and

phrases that protected and enhanced their individual selling personalities. Here is a fact about people; if you don’t make a good “You,” then you will defi nitely make a lousy “Someone Else.”

What is the message? Everyone is unique, and their individualism is what creates their identifi able sales DNA. What is the solution? Authenticity. Only use sales techniques that allow the individual sales person to still operate with total authenticity. Words and phrases that magnify their personality traits and refl ect a sincere and genuine approach are the only way forward today. What are you teaching your people today? What do they say when the customers ask the question, “what kind of price will you give me on this car?” Are they prepared to deliver a professional response that is genuine?

“Our Belief” — This term is powerful and can be used to process any type of objection. The nice part is the words that come after the phrase allow the sales professional to stay true to their personality.Example: Price RequestResponse: “Our belief is that every customer should get a price they can agree to easily. How does that sound to you?”

“Our Commitment” — This phrase is powerful because it denotes a promise to the customer.Example: “Just looking today.”Response: “Our commitment is to provide you all the information you need so you can fi nd just what you are looking for. Is that OK with you?”

“Our Desire” — This phrase is powerful because it expresses a willingness to assist the customer with their needs.Example: “I need to get more for my trade.”Response: “Our desire is to get you top

dollar for your automobile based on its true condition and market value. Would that be OK with you?”

“Our Goal” — This phrase is powerful because it expresses a plan of action to accomplish something for the customer.Example: “I need my payments under $400 per month.”Response: “Our goal is to work with all our fi nancial resources to help you achieve that objective. Would that be OK with you?”

“Our Hope” — This phrase is powerful because it expresses the dealership philosophy in emotional and empathetic terms.Example: “We had a bad service experience at the other dealership.”Response: “Our hope is that our commitment to service before and after the sale will lead you to consider us as your automotive resource now and in the future.”

“Our Mission” — This phrase is powerful because it expresses philosophy and can be used for multiple objections and communication scenarios.Example: “They said I can’t get approved.”Response: “Our mission is to explore every possibility to assure you and your family that you can take delivery of the automobile that will meet all your needs. Would that be OK with you?”

Try using these six word links to process objections. You get to make all the important choices when using this communication template.

Paul Cummings is president and CEO of Paul Cummings Enterprises. He can be contacted at 866.865.3171, or by e-mail at [email protected].

Five separate websites, one for each profit center and individually Search Engine Optimized (SEO). Your visitors will always find you and always find what they’re looking for easily. Top that off with the industries best lead-generating tools and our Award Winning customer service, and you have the right equipment to outdrive the competition.

Call us today and see how you too can harness the Power of 5!

800.564.1875

More Traffic. More Leads. More Sales.with SEO Targeted Websites

www.tkcarsites.com [email protected]

Dealer’s

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AlexBravy

CHOOSING THE RIGHTSPECIAL FINANCE INTERNETLEAD GENERATION PARTNER

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It is nearing the end of the month

and your GM asked you to fi nd a good source of special fi nance leads. You did a quick search in Google for “special fi nance automotive leads” and are now faced with pages and pages of options. You realize that choosing the right lead provider is very important and a wrong decision can lead to disastrous results. Here’s a best practice guide to help you navigate the complicated and ever-changing waters of special fi nance lead generators.

Before You Start: Be HonestAbout Your CapabilitiesWhile many factors go into a successful Internet lead program, the dealership’s own ability to work the leads is one of the most critical success factors. Regardless of how good the leads are, if you can’t follow up and make appointments, you will fail.Ask yourself the following questions:

• Do you have experience with special fi nance Internet leads?

• Does your dealership have a BDC?• What are the limits of your lenders?

Can you work repos, bankruptcies, etc…?

Step 1: Identify Your NeedsBased on how you answered the self-assessment questions, you can now start to identify your needs.

If you do not have experience with special fi nance leads, your fi rst goal should be to gain this experience, so start slow. Look for lead generators with no monthly lead limits. You might want to start with 50 leads for your fi rst month and increase the monthly lead count as you get more comfortable. Look for lead generators that do not have long-term contracts. If things are not working, you should be able to cancel the contract with no penalties.

If you do not have a formal BDC, you should at least have a dedicated person to work the leads or be able to do it yourself. The people who work the leads should be in charge of returning the invalid leads and, as a result, they will be your insight into how well the lead generator is doing. If you cannot dedicate resources to working the leads, you should consider outsourcing the BDC activity. Several lead generators offer this service.

If you cannot get fi nancing for customers with bankruptcies or repos, or if you need a particular minimum gross income, you should discuss this upfront with potential lead providers and make sure they can put in appropriate fi lters.

Step 2: Identify and SetYour Success CriteriaKeeping in mind that a lead is a lead and not a sale, you should set your success criteria to something that a lead generator can control. Cost per appointment provides a solid measuring stick. You should already know your appointment to sale conversion rate, so working backwards you should be able to calculate what your cost per lead should be and how many leads you need for a solid kept appointment.

For example, let’s say you close 40 percent of your kept appointments, your special fi nance Internet lead budget is $3,000, and your target cost per sale is $750. With this information you can now set up your success criteria of Cost Per Appointment (CPA) to be no more than $150.

Let’s look at the formula in more detail and see how different scenarios play out.Let’s say Lead Generator A charges $30 per lead but Lead Generator B charges only $20. By keeping close tabs on valid leads (the leads you did not return and will be invoiced for) and the number of set appointments, you can see how each lead generator performs to your CPA of $150 or less.

Lead Generator A:You see that 20 percent of the 100 leads are actually turning into appointments. You also see that only 50 percent of your set appointments will actually turn into kept appointments. 100 leads x $30 = $3,000 (Your Budget)100 x .20 = 20 (Number of Appointments)3,000 / 20 = $150 (Cost per Appointment) or, given your 40 percent show-to-sale ratio, a $750 cost per sale.

Lead Generator B:You fi nd that while the cost is only $20 per lead, only 10 percent of the leads turn into appointments. With your formula at hand, you quickly realize that this is well below your criteria of $150 per set appointment.150 leads x $20 = $3,000 (Your Budget)

150 x .10 = 15 (Number of Appointments)$3,000 / 15 = $200 (Cost per Appointment), or given your 40 percent show-to-sale ratio, a $1,000 cost per sale.

Now lets say that Lead Generator B has a 15 percent lead-to-appointment conversion rate. This is a small change, but it makes all the difference.150 x .15 = 22.5 (Number of Appointments)$3,000 / 22.5= $133.33 (Cost per Appointment), or given your 40 percent show-to-sale ratio, a $666.66 cost per sale.

Step 3: Measure, Measureand MeasureBased on the examples above, it is clear that just selecting one lead generator gives you very little to work with. You have nothing to compare the results with, so how will you know if you selected the best partner? Whenever possible, go with two lead generators and compare the real performance of one to the other. As you can see in the examples above, a lower cost per lead does not necessarily mean a better deal. In your quest for best results, you might need to try several lead generators and possibly settle on two. One lead provider might not be able to deliver the number of leads you need without experiencing a slip in CPA to unacceptable levels.

Criteria for selecting a special fi nance lead provider should include items such as how easy is it to return the leads, the source of the leads, payment terms and contract details. Some general rules of thumb:

• It is not a good sign if the lead provider cannot show you a Web site that they use to generate the leads.

• If you cannot fi nd their lead generation Web site by performing a simple search in Google or Yahoo for relevant terms like “Bad Credit Car Loan” or “Used Cars for Bad Credit,” then how are they getting people to visit their Web site?

• If a generator has a long-term contract that locks you in or a setup fee, it might mean they are not confi dent in their own product.

Alex Bravy is the co-founder and vice president of business development for Web2Carz.com. He can be contacted at 866.618.8425, or by e-mail [email protected].

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SteveBrazill

WHO SET THE PERFORMANCE STANDARDS IN YOUR DEALERSHIP?

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Unless you sell every car, write

every repair order and wait on every parts customer, you must achieve your goals through the performance of your people. Do they know beyond a shadow of a doubt what you expect of them? Do they know — because you have told them — what is the minimum acceptable level of performance? Do you know what your minimum is?

Setting and maintaining minimum performance standards for your people is critical to your effort to maximize the performance of your department or dealership. If you don’t set a minimum, your worst performers will set it for you. Soon, their level of performance becomes policy by default.

Performance standards are not behavior standards. Behavior standards are typically addressed in an employee manual or similar tool and establish rules for attendance, grievance procedures, vacation policy and so on. Performance standards focus on the results produced by each member of a team. Number of cars sold per month, average customer labor hours sold per repair order, and a monthly CSI score are examples. When you set — and maintain — a fl oor under the key result areas of individuals, you go a long way toward setting a fl oor under the results of the entire department or dealership.

Some things to think about as you set minimum performance standards:

• Be realistic when you set specifi c minimums. Keep the list of standards short and simple.

• Communicate your standards clearly and concisely to everyone who is affected — and to prospective new hires before you hire them.

• Monitor performance and keep a scorecard on every covered employee every month.

• Review results with employees immediately upon month’s end. With most of your people, this should be an opportunity for you to thank them for their contributions and ask if they

have any problems you need to be aware of. If the employee fell below any standard, it is important that you ask what he/she thinks he/she needs to do to improve and what you can do to help. Summarize that discussion on the scorecard, date it and both of you sign.

• If you agree to do something to help a struggling employee, be sure you do it.

• Once you set standards, apply them consistently.

Consider the following example of minimum performance standards for new vehicle salespeople:Unit Sales: 11 retail units per month by salespersons with six months or more experience.CSI: Most current three-month average at or above-zone average.Training: All training requirements set by manufacturer met within 90 days of fi rst opportunity.

Salespersons who fail to meet minimum standards in two months of any three-month period are subject to termination.

Notice that this set of standards does not require feats of superhuman performance. It also accommodates the fact that even good people can have a bad month. Its message, however, is clear: No one can make a habit of underperforming. Tweak it as you see fi t. Adapt it for employees in other positions, such as service advisors, parts counter staff or F&I producers. Suspend or modify it, if necessary, during periods of unusual business conditions. It’s up to you whether you think current conditions in the fi nancial markets have created that sort of special circumstance for your dealership.

Setting reasonable standards, explaining them clearly and applying them responsibly will minimize resistance from your team. Top performers understand that poor performers ultimately take money out of everyone’s pocket. Unfortunately for them, only management can weed out the laggards who consistently burn ups, fail to turn inventory, generate bad CSI, and don’t put in the effort needed to achieve a basic

level of training. On the other hand, income opportunities tend to go up in a store where everyone is busy selling cars and growing the dealership’s base of enthusiastically satisfi ed customers.

Developing standards, monitoring performance and meeting with employees every month takes time that many managers do not feel they have. If that’s you, consider that the consistent use of minimum performance standards can also save time in the long run as many employee issues become self-correcting. Underperforming employees are more likely to remove themselves from your payroll. Terminations, when necessary due to failure to perform, tend to be less contentious because all parties see them coming and there are fewer excuses. (Remember how you met with every employee every month, how you asked those who were struggling what you could do to help — and then, within reason, you provided that help?) Weaker job applicants, when they encounter an explanation of your expectations in the interview process, often take themselves out of contention, perhaps saving you a future problem (and creating one for a competitor). Stronger applicants — those with high standards themselves — tend to gravitate to stores where they can maximize their opportunities. Those stronger applicants will tend to produce more results with less handholding from you.

Every dealership has minimum performance standards. In some stores those standards are set by management, in others the standards are determined by the employees who contribute the least while being allowed to stay. Which system do you use?

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

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STSMattBaker

DOWN TIMESFAVOR THEBOLD ADVERTISERSWith the current state of the market,

many dealers across the nation are tightening their belts and looking to cut back or eliminate advertising costs in an effort to stay profi table. History proves, however, the businesses that succeed in diffi cult economic times are the ones that continue to advertise to new customers. To support this belief, the AAAA (American Association of Advertising Agencies) printed the following facts from Bernard Ryan Jr.’s report, Advertising in a Recession:

• Just after the Great Depression, the Harvard Business Review reported that companies whom advertised the most generated the largest sales increases.

• A Buchen Adverting Study showed that between 1949-1954 and 1958-1961, sales dropped when advertising was reduced, and continued to lag for years after the recession was over.

• ABP/Meldrum & Fewsmith demonstrated that companies not cutting advertising had higher sales for two years before and two years after the recession.

• McGraw-Hill Research Laboratory shared that during 1981 and 1982, companies that maintained or increased ad spending averaged higher sales growth during and after the recession.

• The WPP Group Center for Research & Development showed that in 1990, recessionary periods offered unique opportunities for companies to build market share and position advantageously for the market recovery.

So, as car dealers, how do you repeat this recessionary history in your own market and capture market shares from the other dealers in town? Here are fi ve ideas for you to consider:

1. Don’t Reduce Your Ad SpendingWhen other dealers in your market reduce their spending and you keep yours consistent, you in effect increase your “share of voice.” In your city, “voice” is the cumulative amount of advertising seen and heard by customers within your industry. So, as your competitors spend less, your “voice” becomes louder. Jamie Turner from the marketing fi rm, Turner Fernandez, Turner put it best when he said, “Think of it this way. If you’re in a room with 20 people and they’re all talking, all you hear is noise.

But if 19 stop talking, suddenly the one person who’s still talking can be heard loud and clear.”

2. Concentrate to DominateIn Cahner’s Advertising Research Report, The Role of Advertising in Uncertain Times, it is suggested that market dominance is a product of impact and frequency. This can be achieved by concentrating your advertising. Concentrating advertising resources into time-urgent events can yield the greatest return on investment during diffi cult market conditions.

3. Advertise ValueIn an Ad Age article, Saatchi & Saatchi’s Kevin Roberts states, “consumers don’t stop buying when economies go through down cycles. They look harder for value.” Give them that value in your ad copy.

4. You Can Weather the Storm, but Can Your Staff?You probably can withstand the economic downturn for a period of time, but you have salespeople and managers who are commission-based employees. They may not be able to endure a signifi cant decline in sales. How will you keep them? How will you ensure they don’t leave you for another dealer in town who is a more aggressive advertiser than you?

5. Start Building MomentumFor many dealers, staffed events or “SuperSales” become a shot-in-the arm during good economic times. Yet when times turn tough, these events often become an integral part of a dealer’s business plan. When done correctly, staffed events can generate a wealth of traffi c and revenue, plus provide an added bonus with effective staff training and increased morale. These four-day events offer dealers an excellent opportunity to gain market share, despite economic conditions.

We know the economy isn’t where we would like it to be, but think twice about cutting back on your marketing efforts. Just keep in mind — recessions have overwhelmingly rewarded the aggressive advertiser, and just as importantly, have penalized the timid ones.

Matt Baker is the vice president of sales for G&A Marketing. He can be contacted at 866.618.8248, or by e-mail [email protected].

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JohnBrentlinger

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LEADING INDIFFICULT TIMESIt doesn’t take a genius to manage

things and lead people when everything is going well. Leading in an up market takes no real courage, no serious sacrifi ce and offers no real opportunity for growth. When the going gets tough, however, leading becomes a test of whether you’re going to learn and grow and change, or just fall back on the same things that never worked in the fi rst place. Here are three simple steps for leading in diffi cult times:

Accept RealityFor a leader, acceptance of reality is a foundational duty. There is no “should be.” There is no “what if.” There is only what is. The stress you suffer can be traced to your own failure to accept what is. Constant fi ghting against the way things are keeps doctors rolling in cash, hospitals building new buildings, psychologists in fancy houses and divorce attorneys in Bermuda for months at a time.

Every salesperson is different. Some work harder than others. Some are perpetually late; others come in early. Some learn quicker than others. Some prospect a lot; some a little. Some come in happy; some are always melancholy. Some have good margins; some like mini-deals. All of these differences make up the reality in which you must lead. The reality is that your people are all different. If you want to go insane, just try to make all of your people think alike, sell the same, act and produce the same. Every market is different. Every month is different. There are up cycles and down cycles. If you get jiggy and fi re salespeople in a down market, hire green peas in an up market and just ride until the market cycles again, the guys in white coats are just around the corner, and they will be glad to take you away. Don’t let obstacles get in the way of opportunities.

Delusional management is management based on how you think things should be. If you are trying to lead your dealership based on how you want things to be, you probably should get used to chest pain and stress tests. Your ability to lead has boundaries. Those boundaries are set by reality — what is real. Make sure your leadership is based on real life. There is nothing worse than being sure of something that is wrong.

Grow Personally Isn’t it funny how we would like everyone around us to grow, to change, to learn more and to get better so we won’t have to? As long as we can blame everyone else for not growing, learning and changing, we can just put it in neutral and coast: “Can’t be my fault — I’m in charge.”

Expecting your people to learn, grow and change while not growing yourself is a painful journey toward progressive leadership failure.

The leader sets the mood for the dealership. If there’s a mood of resentment among your people and if morale is low, don’t blame your people and don’t blame circumstances — blame yourself. Would you like to change the attitude of the dealership in 30 days? Then begin to work on your attitude, your demeanor, your mood and your spirit.

The bottleneck is always at the top. Change for the better or change for the worse — it always begins with the leaders. If you want your people to learn and grow and change, you’re going to have to learn and grow and change fi rst. When is the last time you attended a seminar? When is the last time you pursued a path of growth in your own life? Want your wife to change? Want your husband to change? Want your kids to change? Then you must have the courage to change fi rst. Want your employees to change? Then you have to change fi rst. You are the leader; they are taking their cues from you. If you want change, then you

must exhibit in your own life the change you want from others.

Lead GentlyGood leaders are not drivers. You can drive cattle, but you have to lead people. If your excuse is that you’re a Type A, hard charger, mover and shaker, driver of others, y’all might want to guess again; you may be just another redneck on the way to the funny farm. Force always produces a counter force. Push people and, sooner or later, they always push back.

Remember Sir Isaac Newton? He sold cars back in the 1600s. Well, during a sales meeting one morning, he was berating his salespeople for not meeting their goals for the month, and generally making a jerk of himself. After the meeting, one of his detail guys walked up to him and said, “Hey Newt, Ike, Sir, like, you are responsible for the results you are getting. You know, for every action, there is an equal and opposite reaction. What say you cool your jets, Newt? These guys want to produce, and you’re stomping all over them.” And of course the rest is history. Sir Isaac went on to become a philosopher/mathematician, and the detail guy went to America and opened an import store.

Lead gently. Begin with your children, then your spouse. When you master that, the dealership will be a piece of cake. Your people are not machines. They are not robots. They have feelings, emotions, wants, needs, joys and sorrows. All they really need from you is to be a gentle leader with a good attitude, a little self-control and a few kind words. You will be amazed at how everything gets better when you do.

Lead gently. Grow personally. Accept reality.

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].

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For some time I have conducted

training around the seven last words of a dying company: “We’ve Never Done It That Way Before.” When comments like this are made, it signals a dying organization that continues to be stuck in a routine that will not promote or accept change. While the automobile sales and fi nance industry has enjoyed a lot of success the past few years, the way we do business has changed since the beginning of 2008. As industry professionals, we must accept change, re-examine how we do business, and what we can do to remain competitive and profi table. The following check list will serve as a road map to success.

Spend Less; Sell MoreWith the recent introduction of credit-fi ltered “in the market” leads, dealerships who have cut staff can still buy leads that fi t their criteria, allowing fewer people to work higher-quality leads that cost less than traditional Internet credit applications. This allows managers to better control budgets and have a very high ROI.

How Is the Phone AnsweredAfter Hours?Using an automated IVR service allows a dealership to never miss a call after hours, as well as being Red Flag compliant during working hours when customers call and want to give credit applications over the phone. A salesperson can now conference into the dealership’s toll-free credit line, allowing the application to be taken in a Red Flag compliant manner, then continue the call to set the appointment or gain any other information.

Contact Every LeadWhen calling prospects back, the mission is simple: Get the person to show up. Often,

we try to pre-qualify or sell a vehicle over the phone when our goal should be to get the person in the dealership so we can determine the best way to proceed.

Go Back to the Filing CabinetThe dealership has hundreds of previous customers, all who have listed references. Start smiling and dialing to see if any are in the market now.

Conduct Proper InterviewsThis has been a fundamental part of every successful fi nance director I know. Proper interviews eliminate wasted time and help greatly to not only get the customer approved, but to also get the deal funded.

Re-Visit All Bank RelationshipsFinance companies have been forced to change policies and guidelines. Managers who maintain good communications and relationships with their banks do not struggle with the issues other dealers have. Commit to knowing how your loans are performing, keep lines of communication open, be honest and work with your fi nance company to understand new guidelines and what type of paper they are wanting to purchase.

Work Closely With VendorsIf you have reputable vendors and lead providers, ask them what successful dealers in other markets are doing to increase business. Ask if there are new fi nance companies or ones that are back in the market making loans. Build a solid relationship with your providers by checking out new products they offer or changing up what types of leads you buy.

Turn Off The News and Internet;Walk Your InventoryDoes your lot look fresh and clean? Are

vehicles properly displayed, detailed and ready for sale?

Hold “Save a Deal” Meetings DailyThis is a great opportunity to discuss deals with other managers and possibly pick up three or four extra sales per month.

Conduct Positive Training Sessions We all know there is a lot of negative talk today. Get back to the basics and hold positive-energy charged meetings that will give your team fresh ideas and techniques to help deliver more vehicles.

Eliminate Stinkin’ Thinkin’Go to the gym, watch a funny movie, read a great book or just turn off the TV and put on some music. Positive thinking combined with a successful attitude will make all the difference during diffi cult times. Lou Holtz always said, “It is the little things you do that you don’t have to do that will make all the difference when it is too late to do anything else.” Winners think and act like winners. They don’t quit or give in just because times are tough. They work smart, change things they can, and continue to be successful.

In closing, I am sure you can add many things to the above list that will help your dealership; however, the ones I listed are things that successful managers all over the country are doing on a daily basis. I encourage you to step back, look around, and ask yourself, “Am I moving forward or am I guilty of living the Seven Last Words of a Dying Company?”

Paul Snider is the CEO of Voisys. He can be contacted at 866.492.9209, or by e-mail at [email protected].

PaulSnider

SEVEN LAST WORDS OF A DYING COMPANY

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DalePollak

MUDDY WATERS

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Just like the title of the song “40

Days and 40 Nights,” written by the great Chicago blues legend Muddy Waters, I think we all can agree that it feels like it takes nearly this long in most used car operations to get a car to the front line of their virtual lot. OK — maybe 40 days and 40 nights is an exaggeration, but we all know it is pretty bad and defi nitely unacceptable. Let me explain why I feel it is important to highlight this defi ciency.

All used car managers are highly focused on quickly getting their vehicles through the shop and to the front line of their inventory display. Moreover, they are fastidious about the reconditioning of these vehicles in order to present them in the best possible fashion. When it comes to getting their vehicles in a similar virtual

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condition on the front line of the Internet, however, they often lack similar focus, quality and timeliness. This is because the Internet responsibility is often handled by individuals who do not share the same sense of urgency and incentives as the used car manager. In addition, unlike the physical lot, much of the timeliness and quality of Internet merchandising is determined offsite. Allow me to help you peer into these “muddy waters” to prove to you just how “muddy” they really are.

Would it surprise you to learn that, on average, only about 70 percent of your used retail vehicles are actually on display in your Internet showroom? What if you came to work and found that only 70 percent of your used retail cars were on display? Would you be surprised to learn that, at any given moment, a third of your

online inventory has multiple inconsistent prices? In other words, the same vehicle appears on different sites at different prices. Would you be surprised to learn that 15 percent of your online inventory has no price at all? Answer honestly: What percent of your vehicles:• have multiple

prices?• have an

unacceptable time to Internet?

• are on your physical lots and are not yet on the Internet?

• have no online price?

• have incorrect prices?

• are not being

published to all designated sites?• don’t have compelling descriptions?• don’t have quality photos?

These are just some of the frightening statistics that lurk below the surface of your Internet presence. These days, your used car business is an Internet business, and you simply can not reach your used car potential unless you perform all Internet-related tasks with competency, effi ciency and proper timing. Adding insult to injury, you most likely are already spending a signifi cant amount of money advertising on sites that are not going to deliver optimal results because of your dealership’s own defi ciencies. The natural reaction may even be to conclude that the site doesn’t deliver and is therefore, not worth the investment while, in reality, the site is delivering quite well for those that are using it effectively.

In order to be successful in today’s used car business, you must fi rst identify and then organize all of the tasks of used car merchandising from the traditional to virtual. Next, you must assign appropriately skilled and trained individuals to their execution. Be prepared to draw on the resources of non-traditional used car staff. The proper and best choices might be currently working in your parts department or could even be an outside vendor that specializes in that certain thing. We must realize that the sheer number and nature of the many merchandising tasks make it impossible to be owned or performed by any one or two individuals that might have the words “used car manager” in their titles. We have to start thinking about successful used car operations being the responsibility of the entire organization, rather than the responsibility of any one individual.

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].

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FrankFurgiuele

SERVICE MANAGERS BOOST TRAFFIC, GENERATE $2,000 ROS WITH FOCUSED DIRECT MAIL STRATEGY

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Who says direct marketing doesn’t

work anymore? Service managers struggling in a down market have improved their lot by working to narrow their focus on direct mail pitches, with greater attention on fi nding and maintaining good prospect lists and trying new wrinkles like gas rebates.

And these aren’t just oil changes they’re getting, either. “I offer alignments for $59.95” with direct mail coupons, and it brings in jobs of $1,000 to $2,000,” said Larry Olanyk, service manager at Subaru of Wakefi eld in Mass. He’s also selling more tires and said the service mailers are even helping salesmen generate more new car sales leads.

Being able to “slice and dice” a list to very specifi c parameters is key to successful direct mail marketing. Olanyk, for example, just sent out a direct mail piece that targets a certain make and year range of car because those are about due for alignments. He made it part of a “get better gasoline mileage” car repair package and reports he’s already getting good response on it.

Keith Free, a service manager at Phillips Buick Pontiac GM in Florida, had tried many different types of advertising to tempt new customers into his shop that had failed to deliver, to the point that he was skeptical of any new approaches. But that was six years ago, before he partnered on some direct mail promos with a California-based vendor. “This system is twice as good as anything else I’ve tried,” he said.

Finding New ProspectsOlanyk and Free value working with an outside vendor because it goes beyond their own manufacturer’s AOR list. For example, they can target customers farther away from their own shop, or send a piece to customers in one direction because that is a higher-end neighborhood. Manufacturer direct mail lists often lock you in to your own “turf ” and won’t let you step out beyond it, Olanyk said. Both also use the service to track mailing receipts so that they can easily get co-op money from partners. In Olanyk’s case, for example, Castrol Oil supplies him with some funds because he uses their oil and features a small Castrol logo on his mailer.

Managing customer and prospect lists for effective direct mail campaigns is especially challenging in states like Massachusetts

because of their relatively strict e-mail and snail mail address opt-in rules, Olanyk said.

Response Rates Upan Additional Two PercentOlanyk said his direct mail response rate is almost two percent higher using this approach and system. “That may not sound like a lot,” he said, but when sending out 10,000 pieces per campaign, “that means a lot more new customers coming into your shop.”

While some service managers are starting to focus more on e-mail marketing, others like Olanyk and Free see e-mail as more of a supplement to strong direct mail marketing. “Customers come to expect direct mail pieces from us a few times a year,” Free said. “It’s important to keep those coming with a consistent look, but new discounts and emphasis.”

Proactive Direct Mail WorksFree takes a proactive approach to his direct mail campaigns. For example, with today’s soaring gas prices, he just sent out a targeted coupon mailer to customers and prospects offering a $200 gas rebate card if they spend $250 or more in his shop.

Part of the secret, Olanyk and Free agree, is to offer a clear amount of money off in any direct mail effort. “Even a $10 off coupon will attract a lot of new customers,” Olanyk said.

They both report that they can devise and then receive a designed direct mail piece within an hour. “I can help create one and have it in the mail in less than a week,” Olanyk said.

Free also targets his direct mail efforts to help him during slow times at his shop, especially during the summer. “It’s been so slow lately that I had to try something to pump it up,” he said.

The key, however, is to fi nd a direct mail vendor that has clever, innovative ideas about different kinds of campaigns to try. “I’m good at fi xing cars,” Olanyk said, “I’m not good at advertising, that’s what I pay a vendor for.”

Frank Furgiuele is the vice president of marketing for SOS Marketing. He can be contacted at 866.387.5668, or by e-mail at [email protected].

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LarryCochran

In a rural area in Southeast

Mississippi, Walt Massey Automotive is pushing forward and breaking online sales records with its Web site.

Originally not having much online presence, the dealership realized around 2003 that customers were turning to the Internet for all their car shopping needs, and they needed to be on top of that.

“Walt (Massey, owner) and I knew that 80 to 85 percent of car buyers were checking out cars on the Internet — forums, blogs, comparison sites — before buying,” said Tom Wilder, IM-BDC for Walt Massey Automotive’s Lucedale, Miss., location. “They know what they want before they get there. It cuts out the guessing game.”

Now, since signing on with a Web marketing partner, Walt Massey is seeing about 1,300 unique visitors per month, but is constantly pushing that number. In August, they did 1,442, and by mid-September, they’d seen 1,379. Originally, they were selling one to two cars a month online, and now they’re averaging 30 and climbing.

In the beginning, the dealership gained an Internet presence through a lot of trial and error. They took a lot of training courses, Wilder said, and at fi rst, he was making all the calls and setting all the appointments himself. When that became too overwhelming, they brought two staffers in to help fi eld calls and set appointments. They handle customers and gauge interest, and pass the good leads on to the salespeople. The Internet employees can make bonuses to encourage them to convert iffy leads into good ones.

Wilder said what he believes sets his Web site apart from the competition is the ease of use, and that you don’t have to search. The site, www.waltmassey.com, is clean and bright, and fi nding the car you’re interested in is quick and easy. There are photos for every car, and all the information you need is right there. You can even take a virtual test drive, which customers love, he said. They can also get all the research they’re looking for, and

employees can send the customer a quote or even set up a time to bring the car to his or her home.

Keeping track of information is much easier with their marketing partner’s virtual BDC manager, Wilder said. With this system, they can track information, send pictures, track their inventory and the performance of their sales reps. “To manage customers online, I couldn’t think of a better CRM tool,” Wilder said. “Customers don’t fall through the cracks.”

Tracking performance results is important for the dealership because they get to fi nd out what works and what doesn’t, so they know where to put their money, Wilder said. “You get to fi nd out what venues are best for your dealership, and you always have to be on the cutting edge.”

Walt Massey is also using a search-engine placement tool, Wilder said, and since they started using it, they’ve defi nitely seen improvement in the number of visitors and leads.

While the Internet is the newest, most innovative way to reach customers, the company’s long-standing reputation in the community is what keeps people coming back.

“We’re a small, rural community, but we have big numbers, a good reputation, we’re well-liked, straightforward and we don’t hide anything from the customer,” Wilder said. “We have the best Web site in the area. Nobody’s even in the same ball park.”

Increasing sales is always the goal for the future, Wilder said. “We want to become the No. 1 dealership in Southern Mississippi and bring in more customers from the big cities, like Mobile, Ala., Hattiesburg, Miss., and other areas.”

Wilder’s key to success is simple: “Complacency will get you burned. You’ve got to stay on top and stay one step ahead.”

Larry Cochran is the vice president and general manager of digital marketing for BZ Results. He can be contacted at 866.618.8264, or by e-mail [email protected].

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WALT MASSEYAUTOMOTIVEBringing in Big-City Numbers in Rural Mississippi

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INCREASING THE BOTTOM LINEMost dealerships today have accepted

that the marketplace has become a vastly different place in which to operate than it was just a few years ago. Less volume of showroom traffi c, tougher competition, the economy and (insert your choice of bad news here) have thrust upon retail automotive its own brand of “market adjustment.” Really, it’s just the current version of the same old story, working harder for our share of a shrinking pie. For most, that fi ght is not likely to get any easier in the short term. It was told to me once that“the basic solution to most business problems is make more money.” There are two fundamental ways to raise the bottom line profi t of any store:

• Get more customers to come through the doors

• Do better with the ones you’re getting now

It is certainly less expensive from an ROI standpoint, if not a more realistic one, to focus on the latter. The reality is that it’s cost prohibitive to throw an excessive amount of money at advertising to overcome a store’s less-than-stellar closing ratio or lower fl oor traffi c count.

In working with some of the most successful dealerships in the nation, we have noticed that they share some commonalities regardless of their respective brands or locations. Traits most frequently seen in highly successful stores are their focus on these basics: Advertising, Inventory, People and Leadership. Advertising is a key easy to focus in on, almost to the exclusion of just about everything else. The challenge is to fi nd that edge that distinguishes you from Brand X across the street, while still being cost-effective. Top stores know that advertising is not the Holy Grail. Spending a lot will not always equate to getting a lot. In order for advertising to be most effective, it must be consistent with what you have on the lot, presented in a manner that refl ects the culture of your store. Nothing kills a great ad campaign faster than the staff responsible for its execution not knowing what it’s about, how it works or distancing themselves from the ads to their customers because they don’t believe in it. Highly

effective dealerships realize that their internal customers need to be sold before they can effectively sell to the external ones walking in the door. An inventory that is balanced, in the proper days supply, refl ective of the market and in line with what is available from the manufacturers is something akin to having all of the cherries line up on a slot machine, and for many dealerships, about as common. A primary component of successful stores is they are proactive, rather than reactive, especially when it comes to inventory.

Looking at over-aged/unwanted inventory as primarily an expense would be reactive. Recognizing it as all of those things and as a major cause of lower sales gross would be proactive. Customers will pay more for the things they see more value in. Well-balanced, fresh inventories yield greater opportunities for higher PVR’s.

We have all seen it: Selling more units doesn’t necessarily translate to a higher bottom line. A good indication of a well-balanced inventory will be apparent by the sales management’s mentality — i.e. Do they continually see themselves “selling their way out of” inventory vs. selling their way into forecasted profi ts? If a store has a problem reaching a balance between the advertising and inventory, it will be readily apparent in how much of the manager’s time is chewed up in the ensuing juggling act. In high-performing dealerships, a much larger portion of a manager’s time is spent doing what generates the highest return, managing the activities of the sales force. After all, the dealerships gross profi t is really the sum total of the activities of its staff. The most important component of their success is people. Like most recipes, omitting a key ingredient will usually result in less-than-favorable results. The most visible difference of highly successful stores in comparison to many is that in addition to good advertising and inventory maintenance, the greatest focus of the sales effort is maximizing the performance of their people. Their staff is the foundation which they are built upon and ultimately determine the dealerships overall success.

In the end, the stores that enjoy higher profi tability and success will not be determined by those with the most popular brands, best expense controls or even in the best locations but rather by whom has the best-prepared team.

Leadership is that trait that really ties everything together. “Manager” and “leader” are terms often confused as the same thing. It is hoped that both come as a package; unfortunately, many managers in today’s showrooms have never been given the tools or training to develop that key talent. Scores have been written about the differences between the two, but for our considerations, the primary distinction is that a manager who is lacking in leadership skills is more a witness to the sales effort rather than the one who drives it. That manager will usually be found buried behind a desk or tower, weighed down with administrative work that keeps them “too busy” to spend much time with the sales force directly working with them, following up unsold traffi c, making calls, prospecting, and directing the activities that produce results. An unpleasant reality is that, many times, they are engaged in an activity that any clerk could do, while the $2,000 opportunity out on the lot is mishandled. This phenomenon is known as “stepping over a dollar to pick up a dime.”

Leaders are much easier to spot. They will be found actively engaged as an integral part of whatever process with which they’re charged, directing instead of merely ordering others to do it. A leader is comfortable with the knowledge that his/her effectiveness is measured in the results. They are the primary source of a store’s focus and direction. People gravitate to them rather than away from them.

In short, the most successful dealerships stand out amongst others because they think strategically and act proactively. They know they can’t save their way into a profi t any more than they can spend their way into one. Lastly, they possess the close-held belief that the most important asset to the future of the dealership is the people in it, and cultivate them accordingly.

Jeff James is a national sales trainer, seminar leader, and co-founder of Automotive Training Solutions Ltd. He can be contacted at 866.618.8391, or by e-mail at [email protected].

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MarcSmith

A few years ago, I was visiting

the BMW manufacturing facility in Spartanburg, South Carolina. I was there to receive my new BMW. As part of the delivery experience, you are taken on a tour of the plant, and on the driving experience of your life. From the greeting at my arrival to driving out of the showcase, it was an experience I will not soon forget.

One of the things that impressed me the most during the tour of the facility was learning fi rst-hand that BMW recognizes the value of cross-training its people. Our tour guide explained that many assembly line technicians are trained in many areas of the production process. This allows BMW to limit the amount of time an employee works at one location on the assembly line. How many times have you heard someone say they hate their job and would like to do something new for a change? At the BMW facility, employees are rotated every few days to a different job, which reduces boredom and provides the manufacturer with a more fl exible workforce. And in the event an employee needs time off, or is out on leave, managers can always provide a suitable substitute in their absence. The result is improved production, employee satisfaction and reduced turnover.

I believe if dealers would cross-train their employees this way, it would solve a lot of problems. I am reminded of a very successful dealer whom I have worked with for many years. He has cross-trained most of his sales staff to wear a number of hats. He recognized early on that he didn’t want to be dependent on just one or two people in key roles, vowing never to be put in a position that could cripple the dealership’s production in the event of that person’s absence.

Being a visionary, he also knew that to address turnover and employee satisfaction

issues while reducing staff and overhead, he would have to create a different work environment. He had to provide excellent compensation, fl exible hours and an environment appealing enough for the long haul. This environment would attract the best quality sales and management staff, and still be able to manage normal retail hours. He decided to cross-train his sales staff and empowered them to work together to create fl exible hours, all while covering the fl oor during peak and non-peak times. Now most of his sales associates can desk deals, take turnovers to management, contract in F&I and deliver a car.

We forget that people are not motivated solely by money. They like having the fl exibility to do what they want outside of their work life. In fact, in speaking with the dealer’s staff, they say they often work longer hours, but they really don’t mind because of the benefi ts: above-average wages and the fl exibility of time off.

So how does this solve many of the problems facing dealership owners and managers today? This dealer has seen virtually no turnover in the past 10 years, and I don’t have to tell you how much turnover typically hits the bottom line. It can be done. We all know that times are tough, and many of us have had to reduce expenses to weather the storm. Cross-training your sales team can help you reduce the number of staff during non-peak hours. Think of the many benefi ts of a manager fi lling any seat at any time. Managers and employees could easily work out confl icts that arise when employees want additional time off for family and fun. Many times this will also solve the problem of a member of the team quitting or not showing up due to illness.

In my years of dealership consulting I’ve observed the following benefi ts of cross-training:

• Allows the management and sales staff

to have more fl exibility when someone is absent or requesting time off

• Makes for a more-challenging and less-boring work environment

• Sales associates can fi ll in for management when needed, reducing staff and customer wait time.

• Customers enjoy working with the same person throughout the process

• Cross-training naturally breaks down barriers between management and sales staff and builds a more cohesive team.

Don’t think this can work? Well, it worked for my dealer friend, and from what I can tell, apparently works for BMW.

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

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GET LEAN AND MEAN – CROSS-TRAIN YOUR MACHINE

Don’t you hate to hear your customer

say “no”? You spend a lot of time and energy with a customer and when you get to the fi nal stage of the sales process, the customer says the dreaded “no” word. You were all excited and hoping for a sale and then poof, the air goes out of your sails. The good news is that you can change from getting “no” answers to “yes” answers.

First, you must recognize that getting a “no” answer isn’t accidental or bad luck. When a customer gives you a “no” answer, it is systemic from a thought or feeling that occurred before decision time occurred. Although it’s not possible to get a “yes” answer 100 percent of the time, it is possible to improve your ratios tremendously by doing a little review.

Review the last 20 customers you have been with who said “no.” What were their objections? Write down all the objections. Categorize each objection. The good news is that objections only fall into a few categories. Once you realize that you face the same objections over and over, it’s easier to prepare for them in the future.

Now let’s dig into why the objection occurred. For all the complexity of human beings, we are pretty basic in that thoughts and emotions drive our decisions. Small companies, big companies, your country of residence, foreign countries — those things do not change human nature. As a salesperson, you must dig deeper, dig deeper, dig deeper. When you get to the core, you will fi nd fear. What fear is the customer feeling? The overriding fear is of making a mistake.

When you receive an objection, you must now practice risk reversal. The fear has reached a crescendo and created a perception of extreme risk. Sometimes the easiest way for a customer to deal with risk is to say “no.” Customers object for only

four reasons: to stall, complain, negotiate or make a valid objection.

Unfortunately, the majority of objections are also unspoken. You have to use your gut to feel the objections of your customers. You may listen to what the customer says, but you also have to feel what they are trying to say and also what they really mean. These three things can be very different from one another. Listening without feeling and understanding will only cause you to chase veiled objections. You will forever be trying to change objections without getting to a “yes.” Your objective is not to handle or fi x objections, but to get your customer to the point of not only saying “yes” but feeling good about their decision. Notice I used the word “feel” once again.

Fears can be either intrinsic or extrinsic. The customer can have information given to them extrinsically that creates a fear around you, your product/service or the money. Or the customer can create fear based upon their own thoughts or feelings. Remember that perception is reality to the customer. What will change their fears, whether they are intrinsic or extrinsic? Confi dence is the game changer — confi dence that you can show and transfer to the customer. People want to feel confi dent. Usually, your confi dence will come from competence. The more competent you are in listening, understanding, communicating, problem solving, persisting and creating a kindred friendship, the more confi dent you will be and the more confi dent your customer will feel. Your confi dence will trump any extrinsic information given to the customer by another salesperson.

Try the following risk reversal techniques.

1. Re-demonstrate YourProduct or ServiceMove people back their head with their

heart. It’s hard for people to make decisions based upon logic only without creating fear around our logic. People tend to have more confi dence and conviction around their emotions than their logic. Emotions are fun and logic is boring, scary, black and white, right versus wrong. Re-demonstrating your product or service renews the emotion that justifi es logic.

2. Ask the Pointed Question“Mr. Customer, if you had to pick one thing only that is keeping you from buying what would that be?”

3. Reduce the ScaryMonster of Decision “Mr. Customer, the hardest part of getting what you want is to make the decision to do so. That’s normal. The root meaning of the word ‘decide’ means to cut off from all other things. That can be a scary thing. Once you make the decision, all the fear goes away and you lift a ton off your shoulders. It’s okay to make the decision to have what you know you already want to do.”

4. Make No Mistake“Mr. Customer, based upon what you have told me, based upon what you have said you want to do, what your goals are, what you are getting and accomplishing, you are not making a mistake.”

Just as the customer has to decide, you have to decide as well. Do you feel worthy of making this sale? Do you feel like you and your product/service is the best for the customer? When you do, you will go from more “no” answers to more “yes” answers.

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

MarkTewart

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