Car Biz Today Magazine October 2014

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CAR BIZ TODAY The Official News Source of The Retail Automotive Industry

October 2014

ISSUE 8

Entire contents ©2014 Car Biz Today. All Rights Reserved.

THE POWER

THE NATION’S LEADER IN CPO SALES OF TWO CONTINUES TO MAKE BOLD MOVES Before letting that prospect walk out the door without buying a car from you, consider partnering with another salesperson – or your sales manager – to help you close the deal. Having a selling partner can increase your dealership’s profits, not to mention your paycheck.

Joe Verde offers practical advice on selecting a partner and guidelines to make it a win-winwin proposition.

JOE VERDE ...see PAGE 24

MAKING THE RIGHT TRAINING

DECISION JEFF COWAN ...see PAGE 32

SELLING TO THE

EVOLVED CONSUMER BILL WITTENMYER

Ricart Automotive has been dealing for more than 61 years, and has enjoyed its share of years as a top dealer for its original franchise brand. Owners Rhett and Fred Ricart built on the legacy left by their father Paul Ricart Sr. Through the years, the Columbus, Ohio, dealership has gone from a small Ford franchise to a thriving 24-store auto group, and now back to a single-site mega auto group.

Located on an enormous 67-acre site, the dealership operates six new car franchises and The Used Car Factory, one of the largest pre-owned dealers in the country.

General Manager Rick Ricart, Fred’s son, has taken on most of the daily operations of the group, and is incorporating some creative and innovative ideas to push Ricart to the next level. Reducing the number of leads the dealership generates (you read that right) is one reason they have increased their sales every month for the past two years, according to Rick.

Having the service department and preowned department operate as one unit is another brainchild of the younger Ricart.

Rick discusses his family’s history in retail automotive, his following in the footsteps of his grandfather, father and uncle, and the dealership’s reluctant entry into the pre-owned market. ...see PAGE 20

Rick Ricart, General Manager

...see PAGE 18

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Steve Cottrell, founder

Companies provide training for their employees for a reason – to create consistent processes and procedures. Consistency and quality are what keep customers coming back. Your dealership should be no different. Sally Whitesell explains why training employees and then setting up accountability processes is vital to your company’s growth and customer satisfaction index.

With the heightened concern over data security, computer hacking and privacy concerns, it’s more important than ever for dealerships to protect their data. But Steve Cottrell of DealerVault says there’s another reason dealers should take control of their data. They run the risk of losing proprietary information by allowing vendors unlimited access to their data.

...see PAGE 34

...see PAGE 16

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Letter from the editor

CAR BIZ TODAY MAGAZINE Email

newsroom@cbtnews.com Phone

678.221.2955 President and Publisher Jim Fitzpatrick Vice President / COO Bridget Everett

Ever since Mike Jackson of AutoNation announced his company will significantly reduce the number of leads it purchases from third-party vendors, other dealers are questioning whether spending part of their budget on leads is really in their best interest. Regardless of whether your dealership purchases leads or generates its own, perhaps a better question would be how are you handling the leads you have?

On page 22 Glenn Pasch writes about the never-ending quest for new and more leads, and why looking for new lead sources might not be the answer. Is your dealership prepared to handle more leads?

Grant Cardone’s article on page 26 also addresses Internet lead handling and offers very practical advice on how your salespeople should be responding to those leads. According to Cardone, 80 percent of all transactions require five to 12 follow-ups, however only 25 percent of all salespeople make two contact attempts.

And then there’s Ricart Auto Group, whose general manager has challenged his marketing department to reduce the number of leads coming into the dealership. It sounds crazy, but it seems to be working for the Ohio-based dealer.

According to Rick Ricart, since his focus has turned to giving potential customers as much information as possible up front, his sales have increased each month over the past two years. Read about his dealership’s story on page 20.

On a sad note, we at CBT News were sorry to hear of the sudden passing of our friend, Dave Raphael on September 5. Dave was the director of marketing for Mighty Auto Parts and was one of the first contributors to Car Biz Today magazine. Our thoughts and prayers are with his family.

Managing Editor Carol White Associate Editor Russell Brown Creative Director Jay Roebuck Advertising Jane Howard jhoward@cbtnews.com d 678.221.2964 c 404.452.9551 Customer Service info@cbtnews.com

Carol White | Managing Editor cwhite@cbtnews.com

Carol White

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Dave Raphael

Who is

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Super Star?

CBT News wants to know! Starting next month, we’ll be featuring one sales professional and one service professional who are going the extra mile to make your dealership a success.

Send your nominations to the editor at cwhite@cbtnews.com and let us know why he or she is your store’s Super Star.

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One Is Too Small a Number to

Achieve Greatness

By Kirk Manzo

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any sports coaches rise from the ranks as former players. The same holds true in the car business. All too often, high performing individual performers are just expected to seamlessly step up to their new role as managers or group leaders with little more than their own past experience to guide them.

Accepting that you are only one person on the team (regardless of your title) means relying on the rest of your teammates to win the game when it is on the line. Besides, is it practical for you to sell every car and close every deal for your people?

With this in mind here are some practical strategies to help evolve from an individual performer into a group leader.

DEVELOP THEM John Maxwell’s Law of Intentionality states, “Growth doesn’t just happen.” Growth is not accidental, it is intentional. What is your plan to develop each of your players? In order to help each team member we must first develop whom? That’s right, ourselves. We cannot give what we do not have.

PARTNER THEM UP TO INCREASE ENGAGEMENT It takes a team to fulfill a dream. The journey is more enjoyable when shared with others. Millennial employees are often more motivated to see the team win versus just them. Recognize and reward them as a team and watch engagement increase.

The Gallup organization has measured employee engagement over the past several years using their Q-12 survey. Currently less than 30 percent of U.S. workers were identified as actively engaged.

For these rare few, they show up every day not because they have to, rather because they want to.

With 70 percent of team members potentially disengaged (55 percent) or actively disengaged (15 percent) it is difficult to retain quality employees.

One of the questions the Q-12 survey asks is, “Do you have a best friend at work?” Why? Because when the seas start to rock the boat, are they willing to hang in with a buddy or will they simply jump ship? At your dealership, would it be safe to say that there will be some rocky days or months? Can your team weather the storms?

Become a river and not a reservoir, and pour into your people. If FOCUS ON THEIR you are feeling hesitant to invest in Coach Mike Krzyzewski STRENGTHS all of your people – it’s OK to be Each member has a unique set of selective. Place your bet on the winning horse. Put talents to bring to the team. Understanding how your energy where you will realize a return on your to integrate those talents is critical to your team’s investment. After all, not everyone will drink the success. Poor performance may not be a lack of Kool-Aid. drive or ability, but rather poor placement.

CONNECT WITH THEM Love ‘em, hate ‘em. Few can deny the success of the men’s basketball program at Duke University. One of the reasons for their consistency lies with the man at the helm, Coach Mike Krzyzewski (Coach K).

During an interview on NBC during the last Summer Olympics in London, Coach Doc Rivers (now with the LA Clippers) was asked why he thought Coach K was so successful with both Duke and the Men’s U.S. Olympic Basketball teams. Keep in mind that Doc Rivers’ son played at Duke.

Doc’s said, “That it was the relationships that Mike develops with his players that was the key to Coach K’s success. The players don’t want to disappoint him.”

Questions to consider: How well do you know your team on a personal level? Do you know the names of their spouses and children? What’s their favorite sport? Perhaps an interest they have outside of work. If yes, great! If not, then here’s an opportunity to begin that process of connection.

There are many assessment tools available to help define each individual team member’s natural skills and talents. DiSC is very popular as well as Predictive Index. For this discussion consider the Clifton Strength Finders 34. Making the investment in this online assessment can help guide you to effectively position each player on your team. www.GallupStrengthCenter.com

BE THE EXAMPLE YOU WANT THEM TO BE A leader’s credibility is never measured by their words, rather by their actions. In order to help guide and lead each team member to their potential, we must first accept that we cannot take them some place we’ve never been.

It is our willingness to step into the unknown first, and lead the team to the next level that provides the credibility we so desperately need to achieve full buy in on the vision. Anything less will not inspire the troops to greatness.

John Maxwell’s Law of Significance says: One is too small a number to achieve greatness. So build your team and remember it is not about us, it’s about them. CBT

Kirk Manzo President of The Manzo Group

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Contributors Grant Cardone Entrepreneur and New York Times best-selling author

Grant, a national speaker and motivator, is a respected, highly-regarded master salesperson whose passion is to teach people how to sell themselves, their products and services regardless of economic climate. His books, audio packages and seminars provide people of all professional backgrounds with the practical tools necessary to achieve high levels of success. Follow him on Twitter @grantcardone.

Joe Verde

President of Joe Verde Sales & Management Training Inc. (JVSMT)

Joe has been in the car business since 1973. He has been the “eight-car guy” and the 38-car sales professional, a manager and dealer principal. His company was founded in 1985, and under his leadership, was rated the number-one training company again this year. Joe is a frequent speaker at NADA conventions and is in constant demand to speak around the world to automotive groups.

Visit his website at joeverde.com.

Dennis Galbraith CMO at Dealer E-Process

Dennis is the author of “Sales Integration” and “Online Automotive Merchandising,” and is widely known for his expertise in automotive marketing. Prior to joining Dealer E-Process, he owned two successful startup companies, was Vice President of Advertising Products and Training for Cars.com, and led the automotive internet division of J.D. Power and Associates. Visit the website at www.dealereprocess.com

Lt. Col. Rob “Waldo” Waldman

Motivational Speaker and National Bestselling Author of “Never Fly Solo”

As a former combat-decorated fighter pilot, Waldo builds team unity within organizations as a high-energy leadership and sales speaker. Waldo’s been featured on Fox News, CNN and The Harvard Business Review, and his clients include Verizon, Honeywell, Nissan, Siemens and Hilton Hotels. Visit his website at www.YourWingman. com or call 1-866-925-3616.

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Glenn Pasch

Jeff Cowan

Glenn is a trainer at heart. He is a highly sought-after speaker, writer, coach and operations strategist, as well as a customer service fanatic.

He has spoken throughout the U.S. and Canada, educating audiences on a variety of topics including business leadership, change management, digital marketing and the impact of this new technology on culture, business and society.

Visit the website at pcgdigitalmarketing.com.

Jeff, in his 28th year of training, is recognized as the creator of the modern-day walk around and selling processes for service departments. Currently partnered with NADA, EasyCare, NCM, MPi and other vendors and manufacturers, Jeff is the nation’s authority when it comes to training service advisors and service support staff. Visit his website at AutomotiveServiceTraining.com.

Kirk Manzo

David Lewis

As a nationally-recognized speaker and professional trainer, Kirk has conducted hundreds of in-dealership programs nationwide and was a featured speaker at the 2008 NADA Annual Convention in San Francisco. As a certified member of the John Maxwell Team, Kirk facilitates mastermind groups, in-dealership workshops and coaching services based on Maxwell’s strategies on leadership and communications. Visit his website at Manzogroup.com

David Lewis is the president of David Lewis & Associates Inc., a national training and consulting company that specializes in the retail automotive industry. He is also the author of four industryrelated books, “The Secrets of Inspirational Selling,” “The Leadership Factor,” “Understanding Your Customer” and “The Common Mistakes Automotive Salespeople Make.” Visit his website at DavidLewis.com.

CEO of PCG Digital Marketing

President of The Manzo Group

Bill Wittenmyer Partner at ELEAD1ONE, a division of Data Software Services L.L.C.

Prior to joining ELEAD1ONE in 2002, Bill spent more than 10 years in the automotive retail space holding various positions in retail operations management with organizations such as the Coggin Automotive Group, a Florida-based Asbury Automotive platform. He received his bachelor’s degree in business administration from Ashland University and has done postgraduate work in business management at Georgia Southern University. Bill is active in several automotive forums, speaking at several venues each year. You can reach bill at billw@eleadcrm.com.

THE OFFICIAL NEWS SOURCE OF THE RETAIL AUTOMOTIVE INDUSTRY

President of Jeff Cowan’s Pro Talk Inc.

President of David Lewis & Associates

Sally Whitesell

President of Sally Whitesell’s Service Solutions

Prior to founding her company, Sally was a service manager for an import dealer in Florida. Today she performs service advisor training in hundreds of drives across the country at both an individual and corporate level. She has been coaching, critiquing and training advisors and managers for 19 years. She is the author of “Words That Sell Service” available on her website at swservicesolutions.com.

Jenn Reid

Sr. Director of Product Marketing, Automotive Services at Equifax

Jenn brings a unique perspective to automotive services at Equifax with broad professional experience in the dealer, lender and OEM faces of the automotive industry. Her established relationships in the automotive space with dealers, and first-hand experience in helping customers make purchases, and combined 14 years in the automotive space bolster Reid’s reputation as an industry expert.

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fter their August district work period, both the House and Senate returned to session in Washington, D.C., in September to take care of final business before heading back to their districts and states for a final push to the November 4 elections. The time they spend in their home states and districts in the coming weeks is an outstanding opportunity for dealers to engage on the issues important to their businesses this midterm election year.

Congressional Power, Key Issues Up for Grabs Both the House and Senate are expected to return to Capitol Hill following November’s elections for a lame duck session. While the agenda of the session will be largely driven by the outcome of the elections, Congress is expected to finalize and conclude a FY2015 budget. Congress may also take up Presidential Trade Promotion Authority (TPA) during this time.

Although the agenda for the lame duck session remains uncertain, it will be determined by the political party with majority representation in each respective chamber. Republicans currently occupy the House majority with a ratio of 233 Republicans to 199 Democrats and three vacant seats. The Senate majority is held by the Democrats with a split of 53 Democrats, 45 Republicans, and two Independents. All 435 House seats and 35 Senate seats are up for re-election in November’s elections.

Historically, voter turnout in midterm elections drops significantly from presidential election years. For example, in 2008, a Presidential election year, 57.1 percent of voters cast ballots versus 36.9 percent in the 2010 midterm election. Voter turnout went back up in 2012 for another Presidential election to 53.7 percent. Additionally, since 1943 the President’s party has lost seats in 40 of the 43 midterm elections. According to the Real Clear Politics average, 66 percent of Americans believe the country is headed in the wrong direction. These historical trends and low poll numbers have political analysts predicting a troubling election for Democrats.

Analysts are forecasting that Republicans will maintain the majority in the House with the opportunity to pick up five to 10 seats. According to analysts, Republicans may also seize control of the Senate. The potential for Republican control is the highest it has been in recent years. A determining factor in the Senate outcome is the fact that Democrats have to defend seven Senate seats in states carried by Mitt Romney in 2012, while just one Republican seat is up for election in a state won by President Obama. Several elections are expected to be close, resulting in runoff elections through December.

Elections Are an Opportunity for Dealers Elections matter; they set priorities, they set agendas and they determine who is in charge. Because of their importance, the fall campaign season is an exceptional chance for international nameplate dealers to make their voices heard on issues that impact their businesses.

AIADA urges dealers to focus their concerns on the following issues: •

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The need for practical economic solutions, such as tax reform, that would help dealers continue to provide jobs for their employees, grow their businesses and generate revenue in their local communities

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Ryan Mayer, right, of Tameron Honda in Daphne, Ala., hosted a dealer visit with Rep. Bradley Byrne, R-Ala. (Photo courtesy of AIADA)

•

The additional burden put on dealerships by the overreach of regulatory agencies like the Consumer Financial Protection Bureau

•

Passage of Presidential Trade Promotion Authority (TPA) and pending trade agreements, which will grow the economy

To address these issues in the lead-up to Election Day, consider making your voice heard in one or more of the following ways:

Join AIADA’s Legislative Action Network This is the best way for dealers to stay informed of the issues via AIADA’s grassroots newsletter, “Capitol Insight,” as well as Call to Action Alerts when legislation impacting the industry is up for a vote. Sign up at www.AIADA. org/get-involved.

Participate in the Dealer Visit Program Dealers willing to take the next step should consider hosting their member of Congress at their dealership through the Dealer Visit Program. It only takes about an hour and provides dealers the most impact where it counts – on their home turf. To sign up, email grassroots@aiada.org.

Attend a Town Hall Meeting Members of Congress will be setting up town hall meetings across their districts before Election Day. These meetings give dealers who are constituents and local business owners the chance to tell their story. You can find the times and locations on your Member of Congress’ website or at www. house.gov.

Get Social Have a Twitter handle or a Facebook Page? Get your fingers moving and reach out to your member of Congress via Twitter or Facebook. Many are utilizing social media as a way to reach out to their constituents. Take advantage of this unique format and make your voice heard.

Dealers and their employees have the opportunity to express their voices by voting on Election Day. AIADA urges all dealers to understand the issues important to them and their businesses, and in turn, use that knowledge to make their voices heard. But, most importantly, vote.

Dealer News World’s Oldest Chrysler Dealership Honored Members of the Oliver C. Joseph family gathered to receive the 100-year-anniversary award from Chrysler. From left are Oliver Curtis Joseph, warranty administrator; Louise Joseph, part owner; Carolyn Joseph; Lynn Joseph; Brad Joseph, dealer principal; Tim Duncan, dealer network development manager; and Christopher Glenn, sales operations manager. Oliver C. Joseph Chrysler-Dodge-Jeep-Ram was established in June 1914.

Sonic’s No-Haggle Initiative a Hit With Consumers Sonic’s Town and County Toyota in Charlotte, N.C., was the first of the auto group’s dealerships to roll out its One Sonic One Price sales initiative. In an interview with CBT News, General Manager Sanjay Prakash, left, and Vice President of Operations Jeff Dyke discuss how the no-haggle policy is working so far. “We’ve just had one of our biggest months in the store, totally one price, and we didn’t negotiate on any cars – and we won’t in the future,” said Dyke. “It’s exactly what the consumer wants and we’re going to bring that to them, especially the next generation of consumers that comes along.”

South Carolina Dealer Donates $3 Million to Technical School

25 Years with Toyota

Jim Benson, president of Benson Automotive Group in South Carolina, donated $2 million – with another $1 million pledged – to the Greer, S.C., campus of Greenville Technical College.

Gene Moon, left, dealer principal of Signature Toyota in Benton Harbor, Mich., received a 25-year award from Scott Wracher, Cincinnati regional manager of Toyota Motor Sales USA. In addition, the store has been the recipient of the Toyota Presidents Award for several years, most recently in 2013.

Benson, whose family-owned automotive group includes seven dealerships in Greer, Easley and Spartanburg, has employed graduates from the school in almost every one of his stores. “People in the community were very supportive of my businesses from the start, and I owe a debt of gratitude to them,” he said. “This is my way of giving back to Greer.” Benson’s $3 million donation is the largest gift the school has ever received.

(Photo courtesy of Signature Toyota)

“I love Greenville Technical College for the work they do. They’re taking students and teaching them job skills to go out in the world and make a good living.” College officials said the money will be used to improve and expand the Greer campus, which has been renamed the Benson Campus. One of the buildings on the campus will bear the names of Benson and his wife, Evelyn.

(Photo courtesy of Benson Automotive Group)

GNYADA Awards Scholarships GNYADA raised $100,000 this year during its Ninth Annual Greater New York Automobile Dealers Association’s Charity Golf Outing, an event held to raise funds for scholarships for students interested in entering the retail automotive industry. This year’s recipients each received $5,000 to attend the association’s Center for Automotive Education & Training. Julie Esty, pictured with GNYADA Chairman Robert Vail, served four years in the Army. Other recipients were Chad Spencer who served four years in the Navy; James Phillips, a nine-year veteran in the Army; and Covid Hackshaw who served 22 years in the Marines. Photo courtesy of GNYADA.

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MISSION EXCELLENCE:

A FIGHTER PILOT’S GUIDE TO PEAK PERFORMANCE

By Waldo Waldman

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magine being in the cockpit of an F-16 jet fighter at 25,000 feet, in the middle of a pitch-black sky, with a helmet and mask tightly strapped to your face and barely enough room to shrug your shoulders. Then imagine doing this while dealing with claustrophobia, pulling nine G’s, and fending off surface to air missiles (SAMS) – 50-foot telephone poles with explosives on the end trying to shoot you out of the sky.

This was the type of environment I used to fly in as an Air Force fighter pilot serving my country. And while I loved the thrill and excitement of flying fighters, I had to deal with many obstacles other than missiles.

Anxiety, fear and self-doubt constantly threatened to shoot me down. These obstacles constantly humbled me and affected how I dealt with success and failure both as a pilot and today as an entrepreneur and professional speaker.

While the world of the fighter pilot may not sound like a typical environment in your car dealership, I think you can find many analogies between the stressful, constantly changing environment of combat to the world of high-pressure car sales. We have to adapt to changing technologies, deal with increased competition, break performance barriers and collaborate with our teammates. In order to succeed, we have to be fully committed to achieving our goals, prepare relentlessly for every mission and build trusting partnerships with the wingmen in our personal and professional lives.

I learned several key principles in the competitive world of flying fighters. Those same principles can apply to you as you seek to break barriers and reach new sales heights in your dealership.

Push it Up: Commitment is Attitude in Action What’s holding you back in your dealership? What’s standing between you and your being a top gun in sales? What fears or adversities do you face that interfere with your ability to reach your sales and life goals?

In today’s world where the expectation is to do more with less and where the pressure to perform is great, it’s not a matter of “if ” the missiles of adversity will come your way, it’s “when.” The question you must ask yourself when you jump out of bed is, are you ready to face them, or will you allow yourself to get shot down?

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As a combat decorated fighter pilot, my first task was to make sure I was committed to do whatever was necessary to deliver on the commitments and promises I made to myself, my wingmen and my mission. Before flight, we called out “Push it Up” – which meant we were ready to go to full power and give it 100 percent despite the fears and challenges that we were about to face. Those three words symbolized our passion to perform, and demonstrated our commitment to break through our barriers and deliver results as a team.

Are you ready to push it up when you hit the cockpit of your desk at the dealership? Do you commit everyday to take action and go all out, despite your challenges and fears? Or do you give in to the temptation to pull back the throttle of effort and disciple and become complacent. Commitment is ultimately your attitude in action. It’s a mindset you bring to your dealership every day. Your prospects and customers not only have to see it, they have to feel it. It’s fueled by a burning passion and love for what you do every day. It takes focus, sacrifice and courage, and it’s not always easy to do. But “push it up” is what winners do to succeed.

Chair Flying: Preparation Leads to Confidence and Success Fighter pilots never fly by the seat of our pants. Before we strapped into the cockpit, we “chair flew” every mission – mentally rehearsing how we would deal with missile launches, engine failures and aircraft malfunctions. We prepared for every possible contingency and practiced radio calls, maneuvers and emergency procedures. We did this on the ground, in our minds first, before they happened for real, and it helped us overcome the fear of battle. In essence, preparation built our confidence and ultimately, our courage.

How do you prepare for your sales missions in your car dealership? Are you flying by the seat of your pants when a prospect gives you an objection

to price? What will you tell them when they say, “I need to discuss this with my wife” or “the interest rate is too high?” Are you aware of your competition and the technology on the new models in the lot? What books are you reading and what sales seminars are you attending? Are you rehearsing success?

Believe me, “wingmen never wing it.” We have a plan of action every day and prepare as if our life

is on the line. You should as well. Preparation leads to confidence, confidence builds trust, and trust sells.

Walk the Flight Line: Creating Mutual Relationships Inspires Success When I was a young pilot, I was once late for an early morning mission briefing because I accidentally over slept. This was a big deal in a fighter squadron because it meant you couldn’t fly and this could impact our training. Instead of reprimanding me, my commander asked if everything was okay at h o m e .

“Do you f e e l alright

Wa l d o ? ” he asked.

“Do you need a day off? I was shocked. Instead of treating me like a pilot, he treated me like a person.

He asked questions and then listened. He showed me he cared and as a result, I put more effort into my job and became a more dedicated, focused pilot.

In addition, I became more loyal to him. I did whatever I could to help my commander solve his problems as a leader.

Are you leading by example? Are you lifting your teammates up or are you dragging them down? When someone messes up in the dealership, are you rushing to judgment, or are you asking them questions to see if they’ve had a flameout. When you care about your coworkers and the unsung heroes at work in service, sales, F&I or administration, you build connections and trust. In turn, they’ll work harder for you and may even call out hidden missiles that may be coming your way. Reaching your potential both as an individual and as a team is realizing that you should never fly solo.

Having wingmen who provide mutual support helps nurture collaboration, opens communication channels and can even remove self-imposed limitations.

Fighter pilots fly in formations so that they can check each other’s blind spots. It’s a concept of mutual support known as “check six.” Mutual support is about looking for missiles being fired at your teammates, coworkers or friends and helping them see what they cannot see. It also means giving and receiving honest feedback and being fully accountable for your results. Think of how you can be a wingman in your dealership. Who do you need to thank? Who can you mentor, lift up and inspire? Whenever possible, get out of your cubicle and walk the flight line of your dealership. Get to know your wingmen.

Inspire them to reach their goals and do what you can to make that happen, and I guarantee they’ll, in turn, be willing to push it up!

Release Your Brakes: Find the Courage to Face Your Fears You may be fully committed to achieving your dreams, extremely prepared for your missions and have a great team of wingmen. But at the end of the day, your fears can still hold you back from taking off.

Before many of my combat missions, I often focused on my fear. What if I got shot down? What if I became a prisoner of war? Would I have a panic attack from being strapped into that tiny cockpit for six hours? I became doubtful and my warrior spirit diminished. I dealt with this intense fear by picking up the phone and calling my twin brother Dave. He always managed to get me focused. He believed in me, and helped turn my fear into something more powerful – courage.

In sales, it’s normal to be focused on your fears. You’ll fear failure, rejection and adversity every day. But to take off in business and life, asking for help may be just what you need to turn your fear into action. A wingman can see the greatness inside of you that you don’ think you have, and inspire you to action.

Who are your wingmen? Who can you call to get you to step out of your comfort zone and break your fear barrier? And most importantly, for whom can you be a wingman? My greatest advice is to always be willing to lend your wings to others and inspire them to fly.

Remember that leaders lift. Be that leader in your dealership and in your life. The best way to find more wingmen is to be one. CBT

Waldo Waldman

Motivational Speaker and National Bestselling Author of “Never Fly Solo”

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Forward Focused

By David Lewis

Becoming an Agent of Change

L

iving in Central Florida as I have for many years, it is not unusual to be influenced in some way by the magic of Disney. This is especially true if you have children like I do and are within 50 miles of the No. 1 tourist attraction in the world. It is hard to go anywhere, from a shopping mall

to a gas station, where something Disney is not being advertised. The closer you get to Orlando, the more you see all things Disney being sold everywhere from trinkets to T-shirts; balloons to key holders. The genius of their marketing and the consistent innovation that takes place in the Disney culture is what makes it all happen. People from all over the world travel day in and day out to joyfully spend their time and their money to experience the Magic Kingdom.

Those of us in the retail automotive business could learn a lot from Disney, especially in the area of innovation. If it’s new and exciting and potentially lucrative, Disney is right there at the forefront inventing or adapting their next marketing strategy. They do it all without turning their back on the initial vision of Walt Disney and his best friend Mickey Mouse – always keeping in mind that it is the customers who come there that drive all of this innovation and success.

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In the automobile manufacturing industry, innovation has always been the key to sales and marketing.

So, why do those of us who sell cars continue to rely on old and outdated methods for delivering our products to the customers? Go to most dealerships today and observe how they do business. Besides the latest inventory and incorporating an on-site BDC operation, salespeople and managers are still doing and saying pretty much what they have for the past 50 years. Pull them aside and ask them why they do what they do and the answer will usually be the same: “Because that’s the way we’ve always done it.”

I cannot think of a poorer reason than this for doing anything, either in business or in your personal life. This invokes the famous quote that is usually attributed to Albert Einstein: “Insanity is doing the same thing over and over and expecting different results.” This certainly seems to apply to much of the retail automotive industry today.

Today’s thriving companies don’t look backwards for direction; they are forward-focused. The workplace culture is an environment where customer demand drives innovation, and the employee is a respected part of the creative process. They don’t gather at the table on Monday mornings to write the sales expectations for the month on a whiteboard. Staff meetings in today’s hottest companies are brainstorming sessions where everyone is involved and every idea is reviewed and appreciated. Employees are the main source of both innovative ideas and criticism – and nothing is sacred.

Whatever works best makes it to the final production line, regardless of who thought of it. It’s a team mentality and it works.

This doesn’t mean we should throw out everything we have learned and start from scratch. Instead, it means that we cannot do anything just because it is the way we have always done it. There are many proven methods and processes that have made the retail automotive industry a centerpiece in the American way of life. But, there are also some that have

caused the public to view us as people to avoid and not trust, except when it is absolutely necessary to buy a new car.

The fact that most people would rather have a dental root canal than go to a car dealership speaks volumes about our public reputation. Still, many of our sales practices rely on bullying, pressure and false statements designed to manipulate the customer. Those who believe that all buyers are liars can still find a job in a new car dealership and are allowed to operate the way they always have if they can put numbers on the board every month. While we ought to be up in arms, instead, we tolerate behaviors and tactics that should not be allowed, as long as they produce results.

This does not mean that change is easy. It’s not. It is, however, inevitable, and those who refuse to go forward will eventually be left behind. Yes, there will always be a few stragglers out there who refuse to put forth the effort to find a better way. But, hopefully they will become fewer and fewer every year and will stand in stark contrast to the new norm that will be a customer-focused paradigm for our business.

In my book “The Leadership Factor,” I write about the powerful role that real leaders play in the changes that must take place in our business model and in our approach to customer care. Leaders are the ones who make the difference and set the direction for where we must go. Those who own and manage car dealerships across America must adopt better, more effective strategies and processes for doing business. If not, it may become harder and harder to find new customers and earn enough profit to stay in business. Our customers need to be treated with respect and dignity. What’s more, today’s buyers demand it or they will go somewhere else.

Statements like, “That’s the way we’ve always done it,” are really not a true representation of our industry’s history. Yes, we have always had shysters and sharks working in car sales, but there have also been men and

women of high integrity who believe in doing business the right way – solid professionals who recognize and appreciate the value of their customers. If that were not true, there would be no place for companies such as mine that specialize in advancing the best that our industry has to offer by training and equipping true professionals for this business.

Having taught and trained salespeople and leaders across America and Canada for the past 28 years, I have learned one thing above all: doing things the way they have always been done will give us the same results we have always had. To me, this is a daily exercise in futility if not – as Einstein said – insanity.

Those of us who truly care about the future of this great industry of ours must be willing to become agents of change whenever and wherever we have the opportunity to do so. We must encourage new ways and new methods for educating and training those coming into the business for the first time, and invest in retraining those who are willing to go forward and leave the old ways behind.

It’s a new world out there and there is a new kind of customer out there who must be well treated if we want to earn their business. They are highly informed and they have quick access to other sellers if we aren’t willing to recognize their value and treat them with respect and integrity. If we want to continue selling our products to the people looking to buy them, we must adapt to this new standard of the informed customer.

Those who don’t do this may soon become a thing of the past like the outdated ideas and methods that they refuse to leave behind.

To quote the late John F. Kennedy, “Change is the law of life. And those who look only to the past or present are certain to miss the future.” CBT

David Lewis

President of David Lewis & Associates

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Will

Autos Sell Online

By Dennis Galbraith

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shopping experience. The fact that some salespeople are poor listeners and handle all customers as though they were the same makes it hard on everyone and is what drives some shoppers’ desire to purchase online.

Millions of car buyers no longer feel the need to visit multiple stores to be sure their decision is a good one.

They want that information in hand before ever visiting the first store, and many arrive at that first store with the intent to buy. If they had the option of buying the vehicle without going to the store, some of them would take it.

The industry’s best dealership websites already provide all this information and more. Within months, dealer sites will have the added ability to show shoppers their own actual lease and payment rates based on a soft pull of their credit. The choice of best lender will be built into the system. This represents a leap forward beyond traditional payment calculators and affordability calculators. The widespread effort to reduce shopping time in the store will be greatly aided by shoppers’ abilities to know what they can afford. The proverbial four square of financial information can be determined online.

nline sales may never make up the majority of vehicle sales, but some shoppers will eventually make their transaction online. The good and bad news for dealers is the information needs of these shoppers will not be significantly more than what already exists today among consumers who shop online. The good news is there will be little or no change in the level of information consumers already demand today. Another bit of good news: these transactions will happen on the dealer’s website. The bad news for many dealers is they are already losing sales by failing to meet the information needs of today’s shoppers.

The old way of thinking was the dealer should hold back some bit of information so the shopper will need to contact the store. From there, the sales team could work their magic and get the customer to buy. The fact is many vehicle purchases today don’t happen because a salesperson got the shopper to buy. Most sales happen because the shopper wants to buy the car—based primarily on information found online and a confirming test drive. The role of the salesperson is often that of a valued facilitator rather than an arm-twisting influencer.

In no way does this minimize the importance of the salesperson for the vast majority of shoppers. The role of the salesperson is arguably more complex than ever, because shoppers enter the store with widely varying degrees of information, preference and confidence.

Recognition of the fact some shoppers arrive with their vehicle choice already cemented in their minds is critical to facilitating those sales and delivering a good 14

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The information needs of shoppers vary, so the information provided online by the dealer must represent the union of all information needs, not just those expressed by the majority. Among those shoppers configuring vehicles and/or searching inventory, there are nearly as many click paths as there are shoppers.

Dealership websites will one day offer shoppers the ability to purchase the vehicle online. Savvy dealers already provide shoppers with the vehicle, financing and dealership information shoppers need to confidently enter the store with the intent to buy. For these dealerships, facilitating the transaction online will be but a small additional step.

The ability to purchase online will segment shoppers only by their transaction preference and their preference, for whatever reason, to not venture into the store for a test drive and other in-store shopping benefits.

This segment is expected to be small. However, their information needs are no greater than most shoppers entering the store. Besides, the vast majority of shoppers entering the store already carry a mobile phone with access to the dealer’s site with them. The difference is slight.

Many dealers worry they may not be able to establish a lasting relationship if the customer does not come into the store prior to the transaction. This is a valid concern. Developing and protecting the relationship is vital. The most important thing to remember going forward is the final phases of the shopping process will usually include the shopper, the vehicle, the salesperson and the Internet. Some online buyers will make contact with a human at the store, even though they prefer to buy online. That salesperson will often respond with a video demonstration, which includes the vehicle and themselves. Both the salesperson and the vehicle can be projected electronically outside the store. Within the store, it’s a good bet the Internet will remain in the shopping process. If the salesperson does not inject it into the conversation the shopper may wait to bring out their phone the minute the salesperson is out of the room. That is where relationships start breaking down inside the store.

The most critical element on the Internet is the dealer’s own website. That is where online transactions will occur. That is the No. 1 site coming into the dealership in the customer’s pocket or purse. No matter where the transaction is made, the dealer’s website must contain all the information required of any shopper and great navigation allowing any shopper to quickly find what is important to them. The key to getting more transactions is openly providing more information. Whether the resulting transaction takes place online or in the store may be of little consequence. CBT

Dennis Galbraith CMO at Dealer E-Process

PROTECTING

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By Carol White

o doubt “big data” can mean big business for auto dealers. That data, however, has to be shared with third party vendors and manufacturers in order for them to provide the intelligence needed to drive higher sales. But allowing vendors access to customers’ non-public personal information could also put the dealer at risk for violating federal laws.

Long before the National Automobile Dealers Association issued its 14-page memo outlining guidelines for sharing dealer data with third parties, and even before a Georgia dealership was accused by the Federal Trade Commission of putting the security of its customers’ data at risk, Authenticom was busy developing its latest offering – DealerVault, which is the first ever cloud-based data storage system designed to allow dealerships full control and visibility of their information.

“The interesting thing about DealerVault is we’re taking the whole data distribution model and turning it on its head,” said Steve Cottrell, founder. Traditionally, the method for extracting data has been a “self serve” process for the vendors, he

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explained. A user name and password is given to the third party, and they can go into the dealer’s DMS and grab any information they need. But on top of the information they were authorized to extract, those vendors oftentimes had access to more sensitive information such as payroll records, bank accounts, customers’ social security numbers, etc. In many cases, there’s no way for the dealer to know what information was taken, by whom or when.

“We like to think that 99 percent of vendors that are engaged in this are straight up and doing exactly what they’re doing for the purposes they’re supposed to be doing, but the reality is the number is probably something less than that. And even if it really is only 1 or 2 percent, that creates a huge liability and a huge problem for the dealer,” he said. “Many dealerships are more secure than that, but there are still an alarming number that pay no attention. And DealerVault is about changing that.”

Failing to protect sensitive data or misuse of data can trigger an FTC investigation and possibly lead to a private right of action. But the greater threat is the possibility of a class action suit. Only three affected consumers are required in order to file a class-action lawsuit, which can be devastating to the dealer. DealerVault dealers are protected by the company’s $20 million cyber liability insurance policy, which indemnifies the dealer the moment data is transferred to the storage platform, hosted by Rackspace. “We’ve got the dealer’s back,” said Cottrell, an auto industry veteran.

While the security and safety of a dealership’s data is of paramount importance, there’s a much bigger gremlin of which dealers should be wary, said Cottrell. “The other issue is there are companies that are making products and using the dealership-created data for their own financial gain. And the dealers are completely unaware of this.”

Transactional and consumer data is an extremely valuable commodity, he explained. “People create derivative works by simply modeling sales and service behaviors of consumers. Imagine how valuable that information is to the right people. So OEMs all want to know everything about their competitors. When you grant vendors access to the DMS data (they) now have access to every single repair order that was ever generated in that store. You have access to all of that consumer’s information – when they were in the store, how they transacted business, whether they traded, whether they didn’t trade.”

able, but when you’ve got companies that are aggregating this data nationwide, that’s where it really starts to get valuable. And that’s kind of the lights we want to turn on.”

When dealers partner with DealerVault, they are given a simple-to-use web interface that allows them to store that data in a secure environment hosted by Rackspace, a multi-billion dollar company specializing in safety, security and compliance of data storage and distribution. “They know every single data element that’s going to each vendor – when it went, how many records went. Anytime a feed is generated, there’s a complete trail. There’s puppy tracks – who got it, when they got it, what they got, how much they got. That doesn’t exist in the traditional environment today,” said Cottrell.

“Anytime anybody logs into our system, there’s a record of who logged in, for what purpose. Any time a feed is started, any time a feed stopped, anytime a feed is altered, everybody involved is notified. That’s what compliance is all about. So when someone comes in and says, ‘What’s going on with this?’ we can say ‘Here it is.’”

There are people and companies out there who are finding innovative and creative ways to utilize this big data – data that the dealers are supplying. Cottrell believes that by allowing unlimited access to transactional information, dealers may be giving the store away and may one day have to pay for these services that were built using the dealership’s data. “The data from one dealership or one dealership group is valu-

Cottrell first had the idea for a safety, security and compliance company eight years ago, but it wasn’t until he met the chairman of Rackspace, Graham Weston, in 2011 that he was encouraged to build it. The Lacrosse, Wisc., company currently works with more than 400 dealers and about 185 vendors.

“With DealerVault, the dealer takes control, pushes the data to a secure environment and chooses who gets the data, when, what elements and how much. So we’re rewriting the rulebook and putting the dealer in control,” said Cottrell. CBT

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By Bill Wittenmyer

A

utomotive, along with the world at large, is changing at a fast pace. As the automotive sector is experiencing upward growth, it is also facing unprecedented challenges. Never before has an evolution occurred so quickly and as a result, we see several emerging megatrends.

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Consumer Expectations Consumer expectations continue to change radically, and with that, dealerships must adapt their technology and communications strategy to effectively compete and win market share. The average automotive consumer visits an average of 24 research sites online, but only 1.4 showrooms before making a purchase, which is down about 68 percent from 2005. Today’s shoppers demand quick and accurate information, smart and friendly interaction, as well as communication delivery methods that suit their lifestyles. Automotive marketers who can determine which segment of their database will respond best to text messaging versus a phone call or email for example, will make the communication easier and engaging for the consumer, thereby gaining more opportunities to win business.

Automotive retail companies must have the technology, staff and processes required to adapt quickly as consumers’ shopping habits are ever changing. Yet, only approximately 25 percent already have programs underway or completed to adapt both talent strategies and companies’ approach to data.

Industry on the Rise As the global economy continues to improve, more and more aspects of business need to change in order to respond to transformative global trends. And among those changes, customer growth and retention strategies, talent acquisition and use and management of data and data analytics standout. Sustainability is at the core of business success. Those leaders responsible for driving automotive companies have important decisions to make, which involve creating a coherent strategy, defining goals and finding the right people to creatively execute them.

Less than half of automotive CEOs feel their sales department is well prepared to make changes and less than 40 percent see customer service as well prepared.

The dealership culture may not be ready for the evolved consumer-related sales process – one that involves increases in customer knowledge and research, rapid response times and a desk-free and barter-free buying experience. As technology advances to meet these demands, worker availability, experience and skills will become an issue for automotive retail businesses. Has your organization made adequate changes to internal processes to win the business of today’s consumer?

Embracing Technology The fast-paced evolution of mobile technology continues to lead the way on information gathering for both consumers and dealers. The entire process by which we currently consummate car sales will evolve and progress to a remote execution. Mobile CRMs with instant access to lead response tools, mobile desking, inventory management and appraisal tools, in addition to technology – with the proper training and in-store processes – can transform the average salesperson into a sales professional. Today’s Mobile CRM not only manages cultural obstacles, but it also enables the sales staff to drastically improve KPIs – customer logging, faster lead response and streamlining the road to the sale for the customer – by delivering a true “desk-free” experience. Sales and manager views allow immediate monitoring and coaching on the ever-evolving culture of the dealership.

Location-based mobile advertising empowers dealers to communicate targeted messages that include not only dealer loyalty program incentives, but also salesbased advertising, OEM rebates and servicedriving incentives.

Sixty-one percent of smartphone users search their device daily for retail products, including autos. By creating localized offers for shoppers who are near your showroom, or the competitors, forward-thinking dealers who embrace this technology have seen dramatic increases in customer loyalty and competitor redirects. Mobile Internet access is likely to surpass fixed Internet access by the end of 2014, and smart marketers are harnessing the power of mobile advertising by simply addressing how consumers spend their time and money and embracing the technology to engage them effectively.

Two-way text messaging platforms are being used to not only attract new customers, but also as a means to receive sales-based advertising, specials and service status updates. Text messaging is the most popular and cost efficient data service in the world and the foundation of any mobile communications strategy. Do you know how many mobile owners use text messaging on their device? Ninety percent of American adults have a mobile device and 79 percent use text messaging on that device.

According to a recent study sponsored by Facebook, when asked which activity on a smartphone makes them feel most “connected,” 49 percent of users said text messaging, and 79 percent of smartphone users have their phone on or near them for all but two hours of their waking day. These are amazing statistics to consider when developing a customer communications strategy.

With text message technology, dealers can use short codes to ensure shoppers instantly receive information on the vehicle of interest, including pricing and photos, or open a live chat even outside business hours.

investments. Don’t let technology become the meteorite to your dinosaur.

It’s Our Job to Keep up with the Evolution As customers’ shopping patterns evolve, so should your technology and communications strategies. More and more consumers are turning to their mobile device for research, dealership contact and communication.

Today’s consumer requires a fast, 100-percent transparent shopping and purchasing experience. They have more research, data and knowledge than ever before. In order for your sales team to do their job effectively – and efficiently – fully integrated mobile sales and marketing strategies are required to successfully compete in the marketplace. And don’t forget that the continued rise in social media presence ensures customers’ messages and experiences are quickly heard by hundreds of thousands of other shoppers.

Successful companies will be the ones who can adapt to these trends and discover how to treat them as incredible and never-before-seen opportunities. CBT

Bill Wittenmyer

Partner at ELEAD1ONE, a division of Data Software Services L.L.C.

Even with the upswing in the economy, more than 75 percent of automotive CEOs say their company has implemented cost-reduction measures. As more companies scrutinize their ad spend, database mining is deemed the most cost-effective way to attract more sales opportunities and increase service revenue. Database marketing quickly identifies easily accessible customers who are in equity positions or at the end of a term or lease. Targeted messaging combined with live calls, direct mail and mobile advertising communications strategies are generating the greatest return on marketing

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IT’S A FAMILY AFFAIR...

Ricart Automotive Group is doing what it takes to increase new car volume while

LEADING THE NATION IN CPO SALES

W

hile many dealers fork over big money for third-party leads, Rick Ricart is taking a different approach by actually challenging his digital operations specialist to reduce the number of leads coming into the dealership. “I don’t want the customer to have a reason to call or email us,” he said.

According to the Columbus, Ohio, general manager, today’s savvy Internet shopper doesn’t want to engage with the dealership early in the shopping process. “They don’t want to give a car dealer their phone number or email address because they know we’ve traditionally been trained to follow up, follow up, follow up,” he said. “People don’t want that anymore – they just want to shop.”

Instead, consumers would rather have as much information as possible to help them make a buying decision. If the information provided on a dealer’s website can answer all their questions, “then they are just going to call to confirm the car is here and to make an appointment.” Since adopting this approach two years ago, Ricart Automotive has increased its sales every month.

The dealership posted record numbers in August with 1,626 units sold – 771 being pre-owned.

RICART’S HISTORY The Ricart family began its journey into the car business in 1953 when Paul Ricart Sr., Rick’s grandfather, bought a small Ford franchise in Canal Winchester, Ohio. In 1964 he moved the small dealership to a mammoth 67-acre location just nine miles south of downtown Columbus.

When the elder Ricart left the business to care for his ill wife in the early 80s, his two sons, Rhett and Fred, stepped in to oversee operations of the dealership. Today there are seven members of the Ricart family involved with the business.

According to Rick, his uncle Rhett was the savvy businessman while his father Fred was the creative force behind the company’s marketing efforts. They built a production studio on-site to film Fred’s highly entertaining, and sometimes silly, TV commercials. The guitar-strumming dealer and his wife, Lynne, helped make Ricart a household name in Ohio. Together, Rhett

Rick Ricart, General Manager

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and Fred grew the business into a thriving, 24-store dealership group, representing eight brands, and by 1989 became the No. 1 Ford dealer in the country, according to Rick.

With the recession looming on the horizon, the brothers sold off several franchises they felt were not going to be profitable. This allowed them to consolidate all operations at the Ricart Mega Mall site, and as Rick says, “bring it back to the mother ship.” The Ricart campus houses six new car franchises under three rooftops, a 7-acre test track and a stand-alone Used Car Factory, which Rick says has the largest single-point selection of used cars in the country.

GIVE THEM WHAT THEY WANT The auto group entered the pre-owned market kicking and screaming. In the late 80s, the dealership was moving an incredible number of Fords and taking trade-ins as a result. All trade-ins were parked in a field behind the dealership until they could be carted off to auction. “But people would show up at the dealership and ask to buy those cars,” said Rick.

“My father and uncle didn’t sell used cars. They were new car dealers. They eventually stopped cutting the grass in the field so it would grow tall enough that people couldn’t see the trade-ins.

They were hiding them. I’m not kidding you!”

After graduating from Northwood University in automotive marketing and management, Rick joined his father and uncle in the business. Fred has since taken a step back from the daily operations of the dealership, but his influence and presence are still evident, especially in the marketing and advertising. As the spokesperson for the dealership, Rick brings the same flair and light-heartedness to Ricart’s TV commercials as his father did. “I love getting their feedback,” said Rick, “because I don’t know near enough. “The only way to get good is to surround yourself with good people who you trust and listen to what they say.”

“To us it all comes down to volume,” said Rick, “and by continuously turning inventory faster means we get more trade-ins and we have to buy more cars.

And that means more cars that we pump through our reconditioning center. We put in a bucket system a year and a half ago where, depending on the miles of the used car, we know what the reconditioning dollars are going to be up front. So when our buyers are out buying used cars – whether online, at the auction, private purchases – they know what all the back-end charges are going to be on that car.”

A CPO LEADER

There’s a saying that “a used car bought right is already half sold.” But Rick believes a better analogy is “a used car bought right, merchandised right and priced right is 80 percent sold.” The last 20 percent of that equation is the personnel. “The attitude and morale of the employees, to me, is probably the most important thing, because those are the people who deal with the customers and make the first impression.”

After 13 years working in different locations and different departments of the dealerships, Rick landed in the area he feels he can make a difference. He immersed himself in vAuto’s velocity-based business model, which uses market-based metrics to help stock, price, merchandise and retail used cars. Then he looked even further to find other ways to set his operation apart from competitors, which led to partnering

HIRE RIGHT. TRAIN RIGHT.

By recruiting, hiring and training the right people, Rick says his store has avoided the stereotypical, used car salesman stigma. In fact, Rick goes outside the auto business to recruit employees. “You want someone who understands customer service,” he said, which is why many of his staff members are former waiters, valets and bartenders.

“They’re used to working the hours; they understand the nights and the weekends.

They have customer service skills. And the pay scale is more in line with where the car industry is headed,” he explained.

BY THE NUMBERS

But the customers were persistent and still wanted to buy the trade-ins, so the Ricarts erected a building on the corner of the property and jumped into the used car business, which Rick says has become his “baby.”

• •

DAD NEEDS HELP

• •

• •

Years in Business: 61 Franchises: Ford, Mazda, Kia, Mitsubishi, Hyundai and Nissan Rooftops: 4, including Used Car Factory Average Inventory: 1100 used; 1700, new Number of Employees: 400 2014 Forecasted Sales: 9,360 new; 8,001 used

Unlike most dealers’ kids, Rick was not groomed to enter the retail automotive business. In fact, his first job at the dealership came when he was 19 years old, and was more of a punishment for breaking curfew. “I got up the next morning and my Mustang wasn’t in the driveway. There was a purple Contour there. I asked my dad, ‘What is that?’ and he said, ‘that’s the car you’re going to drive down to the dealership – I need your help today.’

“I thought, ‘Oh cool! Dad needs my help!’ I thought maybe it was with the marketing or the commercials.

No. We have 140 light poles here, and they all needed to be painted,” he said, laughing. “I didn’t get paid that summer because it was part of the punishment, but I saw all this activity and all these energetic, highly motivated, happy people with smiles and it really sparked my interest in the business.”

Rick entered the car business, not because he was good at selling, but because he liked cars and was good with people. “I was actually a horrible salesperson,” he said. “But I think it’s easier to sell things when you’re not trying. When a salesperson has to try really hard, customers pick up on that. And nobody likes being sold.”

with EasyCare and becoming a Motor Trend Certified Dealer. “That gave us the chance of putting a reconditioning and sales process in place that created consistency and a uniform process with every car, every customer, every time,” he said. “The only reason we are No. 1 in used car volume is because we don’t use factory certification,” he said. Ricart will certify any make and model that is less than 10 years old and has less than 80,000 miles. The Motor Trend 134-point inspection allows Ricart to offer a certified car that is “just as good as the manufacturer’s certification without going overboard.”

According to Rick, that consistent and seamless certification process allows the 14 trained technicians to turn a used car fairly quickly. “Our goal is 3.5 days from the intake department to the initial merchandizing,” he said. “Right now our average numbers of days to frontline is 6.1 because the new car department had such a good August, and the volume of trade-ins has increased.” Ricart acquires about half of its used inventory from trade-ins while the other half is purchased. Of the 771 used vehicles sold in August, about 650 of those were CPO.

Rick also believes that promoting from within goes a long way in empowering the employees. “It lets people on the frontline – on the ground floor – know that by putting in the time and caring about this place, they will have the opportunity to advance.” Employees are encouraged to speak their minds, provide feedback and communicate openly with others in different departments. The result has been improved communication and enhanced cross selling which benefits every rooftop on the campus.

A UNIFIED APPROACH Another approach Ricart has taken is having the pre-owned and service departments function as one unit. This involves the service department having a “no-questions-asked policy” when it comes to repairing a vehicle that might have an issue shortly after the buyer takes delivery. “Service doesn’t bother the sales department. They don’t charge the repair back to the sales department, or any of those types of things that used to happen in the past that caused tension between the departments. If your fixed operations and your used car department combined can handle 100 percent of the absorption rate, then any net profit you make in the new car side is just that – net profit.”

And that profit will go toward things, such as recruiting and training the best employees, and producing those fun and entertaining commercials – but not to generating leads. CBT October

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FREE yourself Overcoming a Dependency on Leads

By Glenn Pasch

Q

uestions for all the dealers reading this: Are you a lead junkie? Are you addicted to testing every lead source that someone throws in front of you?

Are you always asking others for that secret lead source that will solve all of your sales problems? Is it time for an intervention? Is it time to stand up and say, “I am a lead junkie and I need help”?

How To Maximize Your Lead Sources You should be investigating your team’s ability to handle leads correctly before judging a lead source’s value. I recommend first investigating if your team is prepared to handle an increase in leads. I would hazard to say that most auto dealerships are understaffed, especially in their BDC.

I have been asked these questions many times by dealers: “Which is the best lead source?” “Can you tell me if I should cut out this vendor or that vendor?” “My friends in my 20 group swear by these leads but they aren’t working for me. Should I stop buying them?”

In my experience I have found that many dealerships do not have enough people to handle the leads they are currently receiving. Of the dealerships that reach out for help to improve their results, almost every single one of them has this problem.

Answering these questions in a vacuum is hard for me because I need to understand how the dealer’s team is handling its leads. Is the team efficient with all lead sources, or are members deciding in their own minds that one source is better than another so they cherry pick the ones on which they want to work?

In my humble opinion, the addiction to finding new leads or more leads is causing you to look at the wrong end of the horse so to speak. As I have written in the past, there are two ways to increase sales.

1.

2.

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Increase marketing budgets and close the same percent but, because of more opportunities, you sell more. Cost per car is higher, but you can see an increase in sales volume so you are happy.

You can refine your employee processes and become more efficient with the opportunities you have, thus increasing sales without an increase in marketing dollars.

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For example, a very successful dealership asked me to review what its team was doing because the dealership wanted to continue to improve. When I asked the GM how many leads the team was getting to its BDC – not calls mind you – he said approximately 500-600 each month. I then asked how many people were handling those leads and he said two. Wow. I asked how much they were spending each month on marketing, and then told him they are wasting part of their marketing budget paying for leads that are not being handled. Imagine if people came on to your lot to ask about a vehicle and you ignored them. Well, that is what you are doing by mishandling leads.

It is not the fault of your workers; there are just so many hours in the day and the number of leads they can properly follow up on exceeds the workday. In this case, I told the GM that he needed four or five people handling these leads.

Now, every dealer immediately goes into a defense mode because I am telling him or her to increase staffing. My rebuttal to this posture is to review the amount of money each month is being wasting on

marketing that is generating leads no one is following up on. I further explain that this cost each month is more than what you would pay these new employees to sell more cars, let alone the long-term impact of future sales and service revenue.

Go Beyond the BDC or Internet Sales Department The process of inspection does not stop once you get your BDC or Internet department fixed. You then need to inspect what your floor staff is doing to follow up and maximize the opportunities they have; then the used cars and service departments as well.

Every person who is responsible for interacting with an opportunity must have a process in place that he or she follows, along with someone who is inspecting these results.

Continuing to pour water into an already filled glass is just wasteful. So is continuing to pour more leads into your dealership that your staff cannot handle. When you feel that craving for more leads, before you go out to find yet another lead source to test out, look inside to see if your team is staffed to handle the leads you already have.

Once your staffing is correct and processes are being executed correctly, then and only then will you be able to judge lead sources correctly. It is time to admit that you have been a lead junkie and get the help you need.

CBT

Glenn Pasch CEO of PCG Digital Marketing

Thinking of

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The

Power of

2

Turning Deals Is Just Smart Selling

By Joe Verde

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CAR BIZ TODAY October

Why should you get help from another salesperson or manager the minute you realize you need it?

A ‘Flying T.O.’ The rule in most dealerships is to get a manager involved on every deal before a customer leaves without buying.

How that usually works out in most dealerships goes something like this: The customer is in their car, it’s in reverse and you race to the manager’s office and say, “Boss, they’re leaving, do you want to talk to them?”

Get A Grip

Paul if I wasn’t in. We also did that with appointments.

I’d tell my prospects, “If I’m with a customer, talk to Paul.” Before our days off, we’d brief each other on what we had working to help us make extra sales then, also.

•

Note: Our splits were official for payroll and taxes.

If I sold it, the deal hit the board as a Joe/Paul deal with the “closer” (me in this case) on the delivery half for factory cash, etc.

Establish Rules for Turning

•

Bonuses and spiffs: You can do it however you want, but we didn’t usually split any daily individual bonuses or spiffs, the “closing salesperson” got it, except on those busy days above.

•

If I turn to Paul, we’re connected on everything until he’s done with my prospect. If I get another up – other than a confirmed appointment – and make a sale, he’s on half of my deal, too. If we make both deals, we split both. On busy days, we’d end up connected all day and logging deal after deal – and commission after commission.

If you can’t close the sale, maybe somebody else can.

Most important, get someone else involved before you’ve totally lost the deal or it won’t matter who you turn it to. Remember that your goal is to deliver a vehicle and make some money – not to lose deals every day because of your pride or ego. Half of something is always better than all of nothing.

•

So, who should you get to help you? If you can’t close now, that someone else should either be a high achiever in sales or your sales manager. I could never see much point in turning a prospect I couldn’t close to the six-car guy.

If we split a deal and the prospect bought another vehicle within a couple days, that’s a split, too. Put a time limit on it that’s reasonable and then just be fair with each other and you both come out ahead every month.

•

Who keeps the customer after the sale? Not necessarily the closer. If my previous customer appointment showed and Paul closed it for me, it was still my customer. Common sense is the salesperson the customer liked best should be their salesperson down the road – with no more splits.

Find A Selling Partner Do what I did and partner up with a good salesperson you can work with all of the time so you each know how the other sells and can help close the sale. Here’s a tip: Find a partner who does not sell the same way you do. The differences in selling style will help close the sale.

Rule: Once you turn a prospect, stay out of the deal, especially if you’re in the negotiation. When you turn a prospect, fill the other person in as you introduce them, then disappear or be quiet and let them close the sale.

Rule: Follow the procedures in your dealership.

I make suggestions, but I don’t create your policies or sign your paycheck. Your dealer sets the rules, so do what they tell you to do. If you don’t have a clear policy on turns, bring it up in your next meeting and come up with a consistent process. Turning deals is not old school. Learning to turn professionally sells more units and makes everyone more money. Practice your processes until they’re smooth as silk, and you’ll close more deals with higher grosses and make more money than ever before. CBT

Joe Verde

President of Joe Verde Sales & Management Training Inc.

I worked with Paul. We were both great salespeople and if I couldn’t sell it, I’d just scratch my ear (our signal) and in a couple of minutes Paul would walk by. No awkward moments, and I didn’t have to leave the customer alone. Our process made it easy to get him involved: “Hey, Paul, you worked this last weekend. (Now summarize) Bob and Betty were looking for a car for Cindy. She’s heading to college and they need something economical, reliable and safe while she’s on the road. Can you think of anything that came in on trade?” Paul would start talking, and I’d excuse myself to check on something.

It worked really well for us because I’m that good old boy from Texas and Paul was that high-intensity guy from New Jersey. If my selling style didn’t get it done, he could usually finish it up and vice versa. The last month we worked together, we each had more than 30 deals on the board and more than half were splits between us.

The other benefit of having a partner is that when I was scheduled off, I’d write Paul’s name on my business card and tell my prospects to make sure they saw October

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25

FOLLOW UP or Die Out

By Grant Cardone

D

igital media advertising is now bigger than national TV advertising and is expected to exceed total TV advertising spending by 2018. This shift to digital is driving an unprecedented number of customers to websites and landing pages. While this is creating new problems and challenges for auto dealers, it’s also creating bigger opportunities for those entrepreneurs who can figure out how to effectively respond to these prospects.

How big is the opportunity? Well, have you ever reached out to a business’ website, filled out a form showing interest only to be completely ignored? Of course you have. In fact, 65 percent of all companies admit that they have no process to nurture leads.

I recently created a mystery-shop campaign to show companies just how big this problem and opportunity is. Three companies with three completely different products hired me to evaluate their website response and sales teams.

One was a luxury jewelry store, another a large group of automotive dealerships and the third was a service company. The automobile dealership sent an automated response. The other two companies still had not responded after three days.

•

It requires eight follow-up attempts just to qualify the lead.

•

Eighty percent of all transactions require five to 12 follow-ups.

Having looked into this follow-up problem, I can tell you it is massive. Did you know 44 percent of all salespeople give up after one follow-up call? Who allows this to happen? Especially when you consider the fact that companies that nurture leads have 47 percent higher profit margins than companies that do not.

•

If you include texting in your response, you increase your conversion rate by 40 percent.

When effectively used, texting can improve conversion by more than 100 percent.

This means prospects put the value on quick response, not on lowest price.

Smaller businesses and solo entrepreneurs often point the finger to limited infrastructure to handle follow-up, but the reality is if you are a small business owner, this is where you need to invest. I know what it’s like to be a one-man show because I was one for too many years. But in order to survive, I made sure I followed up quickly and over long periods of time.

Why do salespeople and companies fail to follow up?

My company surveyed more than 800 salespeople and 500 businesses that said they don’t follow up because there are too many leads, leads are cold by the time they get to them and there’s no organized process for follow-up.

The reality is there is no commitment to follow up. The culture of your company has made it OK not to follow up. Now, in defense of the sales team, if your salespeople don’t know how to effectively follow up, what to say, how to text, when to email, when to call, when to offer more information or simple things like how to get the lead on the phone, then how can you even make a second call, much less the five to 12 calls necessary to convert the Internet lead to a purchase?

This problem is your opportunity and I know how to make it your new best friend. Follow these three steps:

1. Share the facts The more your team knows about lead response and follow-up, the more receptive they will be to following new lead processes. Here are the facts: • Average response time for an Internet lead is 44 hours.

• Sixty-five percent of all companies don’t nurture the lead.

• Only 25 percent of all salespeople make two contact attempts.

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2. Make a commitment to follow up If lead follow-up has been weak at your dealership, it will be your responsibility to instill the importance and necessity of it with your sales staff. This is about your culture and can only be the decision of executive management.

3. Implement a precise schedule and process Again, if your salespeople have not made a commitment to follow up in the past, they will need specific guidelines to effectively follow up on leads. Give your staff a precise schedule with actions for each follow-up attempt using a variety of means. A schedule might look like this: 1.

Automated response within five minutes. “Thank you. Someone will be right with you.”

2.

Text message or email (text preferred) response with information overload and terms guarantee.

3.

A same-day call from quality service.

4.

Same-day email message. “Please call me immediately regarding your interest. I have a way for you to take advantage of great savings.”

5.

The management call. “What can we do to earn your business?”

If you still fail to convert the lead, you must create an exact follow-up process from day two through the next 12 months. Remember, it usually takes five to 12 follow-ups for a transaction to take place. Don’t just write it off.

Stop struggling. Take advantage of this opportunity to differentiate yourself in today’s market. Don’t be one of the 65 percent of companies that don’t nurture your leads. Create a solid follow-up system and make it part of your culture. Follow up or die out. CBT

Grant Cardone

Entrepreneur and New York Times best-selling author

School of Hard Knocks

By Jenn Reid

T

he combination of today’s great momentum in auto sales along with continued challenges and complexities faced by dealerships, often lead me to reflect upon my early days in F&I. These were the times when Murphy’s Law taught me the value of getting involved early in deals, getting deals right the first time and having a strong personal reputation with both lenders and customers.

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The Value of Getting Involved Early on in Deals Yes, it’s absolutely true that anything worth doing is worth doing poorly - until you can learn to do it well.

– Zig Ziglar

He went on to hand down the following advice: •

If you are not in the process of delivering a vehicle, get out of your office and introduce yourself to customers. Sit with your desk managers while they pencil deals.

I thought I had made it when I was a sales consultant and landed my first job as a finance and insurance manager. At the start of my F&I career, I would sit in the office waiting for a salesperson to bring a closed deal back to me.

•

Help your sales team close deals.

•

Always do a customer interview when they have agreed to buy and before bringing them into your office.

Like many finance managers, I would get frustrated when: •

I looked at the worksheet only to see that the customer was quoted below the lender buy rate and subsequently, would have to bump the customer just to deliver the vehicle where it was closed.

I tried what he suggested, and learned the value of getting involved early in deals. The training opened my eyes to several things I could improve upon, and I quickly realized my best deals occurred when I spent my time out on the floor rather than sitting in my office. This also helped me avoid many errors later in the process.

•

Customers would walk into the finance office and start off by saying, “I don’t want to buy anything.”

Getting Deals Right the First Time

•

I would complete a delivery, only to discover that there were errors or inaccuracies on the deal.

Your greatest asset is your earning ability. Your greatest resource is your time. – Brian Tracy

Needless to say, early on, my profit per vehicle retailed was nothing to brag about.

A couple of months after my F&I career began, I considered it luck when I was able to attend an F&I training put on by my captive, during which I was fortunate enough to sit at a table with seasoned F&I managers. While sharing war stories, one of them said to me, “Jenn, what are you doing in the F&I office?” He went on to explain that when you just sit in your office, you are not engaged with what is happening out on the floor, ultimately leaving your success – and your paycheck – in the hands of others.

“Just roll the vehicle. They are a 710. They can buy anything.” If there was ever a quote that Murphy’s Law would taunt me with, it was that one. Those deals were the ones that always seemed to backfire. They would be sitting at the top of the CIT list the following week, and trigger daily reminders from my office manager – she was waiting on the money. Often, this was due to unexpected terms, stipulations and errors in the paperwork.

Even worse, was finding out a deal was a straw purchase.

I remember the first time a 700-plus customer was “stipped” for proof of insurance, income and residency after delivery. Hindsight is humbling, particularly when a thin-file customer with a short file time and even shorter job tenure doesn’t necessarily equal a straight up approval in the eyes of lenders, regardless of credit score.

Many lenders have established their own internal scores and don’t just consider the most commonly used credit scores. During these deals I learned first-hand how hard it is to get a customer to come back with stip-clearing documentation after they had already driven their new car off the lot. Conversely, subprime customers, who often would have discrepancies in their stated income and were sold cars without having to provide proof of income at delivery, conveniently seemed to “go out of town” the day after their vehicle purchase, when I would call to ask them to bring in a pay stub.

Between those deals, and having to get customers to re-contract due to errors or missed signatures, I learned that having to deliver the same vehicle twice is the worst return on an F&I manager’s time. If this occurred, often we would also have to compensate the customer for their inconvenience, which in turn meant lost profits and lower CSI scores. By getting involved in deals earlier on, setting realistic expectations with customers on the delivery time and double checking to ensure everything was accurate, we were able to help get the dealership paid faster, improve customer satisfaction and allow the F&I manager to focus on the next deal.

I saw in my travels, while working on the lending side, not every F&I manager works in the same environment, and each store can be different when it comes to the pressure levels to get a vehicle delivered quickly and to “get a deal right the first time.” However, if you are in a fast-paced, “get it delivered” environment, there are tools available to help you accomplish this, while drastically reducing the risk of errors or oversights. The small investment it takes to leverage these tools pays off exponentially. Dealers can now have access to instant verification of income and employment for more than 58 million consumers, reports that provide all the scores that lenders use, as well as fraud prevention tools. By

utilizing these assets, it is realistic to drastically reduce the number of re-contracts.

The Value of Personal Reputation With Lenders and Customers You can’t build a reputation on what you are going to do.

– Henry Ford I once received a call from my “go-to” underwriter at my primary lender saying they had just performed a customer interview on a subprime deal I had delivered a few days prior. During my conversation with him, I remember being caught off guard by one of his questions, “When did you start power-booking?” During the interview, the customer mentioned that the vehicle they had taken delivery of was missing a hole in the roof, at least according to the book-out sheet that was sent with the deal. The first words out of my mouth were, “I don’t do the book-out sheet. I just take what the desk gives me in the deal.” I had a great relationship with this underwriter, and while he did hit me with a fee for the change in advance, he still cut me a break.

He also made a point to say that he heard similar explanations from other F&I managers, and reinforced the fact that I was ultimately the last one who signed off on the deal.

Only after learning the hard way about “trusting and not verifying,” did his words finally ring true. While in the field on the lending side, I would come across deals with inconsistencies in income, employment, address, insurance, book-outs and other deal components. There was, typically, one common theme amongst these inaccuracies; no one ever admitted to it. These situations – whether intentional or simply oversights – erode credibility for both the finance manager and the dealership.

Moreover, it can earn the dealership a place on lenders’ watch lists, which in turn can cause auto approvals to be turned off, underwriters scrutinizing applications or eventually dealers being cut off altogether.

It is worth mentioning that the difference between then and now is the data and tools available for lenders are rapidly evolving in sophistication. Lenders can now have instant access to employment, income, identity and other data sources that create a new level of deal transparency.

Lenders are not the only ones with new tools available; dealers can also now instantly verify things like income, employment and identity. I recommend exploring some of the new solutions in the market to determine if they will help you deliver your vehicles with more accurate information, avoid issues with your lenders, and escape surprises by having the same information your lenders are using. Your reputation with your lenders can be your single greatest tool for getting vehicles delivered. It is wise to also remember that no deal is big enough to risk your personal reputation with your lender or customer.

The industry has become more complex since I was in F&I, and this is likely to continue evolving and changing. Getting involved in deals early, committing to getting deals right the first time, and holding your personal – as well as your dealership’s – reputation above all else will, however, help to withstand any rising tides the industry may face. CBT

Jenn Reid

Sr. Director of Product Marketing, Automotive Services at Equifax

October

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Keeping the LINES of COMMUNICATION

OPEN

Going the extra mile to keep in touch with your customers will help steer them back when they’re ready to buy again

By Carol White

Al Antinarelli, VP of Sales

One of the challenges dealers have when it comes to their mobile apps is keeping their customers engaged after the sale. Mobile apps are crucial for dealers when their prospects are shopping for a new car.

But once that vehicle is delivered, many buyers either never open it again or delete it from their phone altogether.

A new start-up company is hoping to change all that. Virtual Auto Dealer Services (VADS) recently launched a mobile application, along with several other products, that is designed to keep buyers connected with the dealership even after the buying cycle is complete. “Basically we saw a need for dealerships to have a mobile app that did more than just divert customers to a website,” said Al Antinarelli, vice president of sales. “It’s a working tool for both the owner of the car and the dealership.” VADS mobile app is customized, not only for the dealership, but also for the customer’s specific car.

Al, a 30-year car guy, joined his brother Rob Antinarelli who, along with his partners, founded the Atlanta-based company. Rob has worked in the telecommunications industry for the past 15 years. “The biggest issue dealers have when it comes to mobile apps is the ability for them to have their customers actually use their application – put it on their phone not only in the purchasing cycle, but to actually keep that app on their phone,” said Al. “We have so many tools in our application that the customer can use, and they will want to keep it on their phone.”

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With the advanced technology of today’s cars, the VADS team saw a way dealerships could help their customers understand all the bells and whistles – and in the process, create top-of-mind awareness for the dealership when customers are ready for their next vehicle.

The way the app works is once a customer is sold, they download the app using a QR, or quick read, code, by going online or by going to their phone’s app store and searching for their dealer’s name. After initial setup, all the information pertaining to their new or used car is stored including the owner’s manual, quick start guide and VIN number. In addition, all instructional videos for their vehicle’s features are loaded right on the app.

“Cars are getting so technical now days,” said Rob. “So how do you support your average customer in their ability to use new features? How do you set multiple seat controls? How does Time Shift Radio work?”

Another convenient feature is the service-scheduling portal. A few clicks lets the customer book a service appointment without having to enter their name, number, address, car make and model, etc. When a service appointment is made using the app, the dealership will already have all the information they need.

It is even designed to send reminders right to their customer’s phones.

All the features are designed to keep the lines of communication open between the dealer and customer, while promoting the dealership at the same time. The “My Car Selfie” feature allows happy buyers to snap photos of their cars and upload them to Facebook or Twitter directly from the app. Information about the dealership is appended and will be posted with the picture for all their friends to see, said Al. A happy customer can also refer a friend right to their dealership’s sales manager right from the app with the “Refer a Friend” feature.

“As the manager of a dealership, I’ve seen instances where you’re doing multiple deliveries at the same time, and the salesmen, as good as they are, can’t spend hours going over all the features of the car,” added Al. “When you’re caught up in the purchase of a new vehicle, you’ve got all these things happening and sometimes the customer doesn’t absorb everything during the first demonstration. What happens is they have to call or come back to the dealership to get help with the new features – or try to find the information online.”

The app is managed through the dealer’s management portal, which can be changed and updated as often as needed. It also allows the dealer to send customers push notifications for coupons, specials, events, recalls and appointment reminders.

Searching for instructional videos on You Tube can be a frustrating experience. Sifting through all the videos to find the manufacturer’s video can be a challenge, Rob explained. The VADS mobile app puts the right videos in the buyer’s hands and can be accessed with a couple of clicks. There’s no need to input user names or passwords before getting the information you want.

Keeping your dealership’s name in front of your customers, and doing whatever it takes to support them while they’re not in the buying cycle are key factors in getting them back to the dealership when they are ready to purchase. “The dealer that goes the extra mile is going to sell more cars,” said Al. “That’s the bottom line.” CBT

To accompany the mobile app, VADS offers customizable folders meant to enhance the delivery experience, said Al. VADS offers a tri-pocket folder that fits in the glove box to organize all the paperwork, and give dealers one more avenue for branding their store.

JOE VERDE

The #1 Training Company In The Car Business 2 Ways To Sell 20 More Units This Month...

Gain momentum and beat your competition! #1) How’d you like to sell 2 more units for every 10 write ups you didn’t close?

Then hold those Make A Deal Meetings every morning that we talked about awhile ago. Look over every deal that was worked yesterday but not delivered.

Don’t say, “We tried everything we could,” because you’ll be amazed at how many ideas you can come up with when all of your managers as a group take a fresh look at those write ups.

The results you can expect: In our dealer/ manager workshops, managers say they find a way to deliver 2 out of every 10 they didn’t close the day before. #2) When you work a deal that you don’t make and you’re ready to let the customer go – instead of having the salesperson give them back their keys, have a manager do it.

With a smile on your face and no paperwork in your hand, give them their keys and say, “Hi folks – I’m the guy who’s been scribbling those numbers back and forth – I’m sorry we couldn’t get together”... visit a minute and then ask... “If there was one thing that kept you from getting this car right now, what would that be?” Then close the sale on that one thing.

The results: 2 more sales for every 10 that you personally get involved in.

Make Those Extra Sales Get Joe’s 3 Books – FREE!

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n How To Sell A Car & Close The Sale Only send people to this class you want to improve 20-30% overnight

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“We started using Joe Verde Sales & Management Training about 2 months ago, sent managers to class and started using JVTN®.

Let me tell you what a difference it has made at our dealership – everyone’s attitude, motivation, and work ethic has drastically improved.

Our units are up 10% & our grosses up 30%!

I’m hearing Joe’s word tracks on the floor more and more and couldn’t be more proud and excited to see where we are going to be in 6 months!

So if anyone doubts that training works, we are living proof it does. Thank you Joe!” – Mike Udell, General Manager, Toyota of Grand Rapids, Grand Rapids, MI

JVTN® – ONliNE TRaiNiNg

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Your Best Tool For In-Dealership Sales Training

hat is JVTN®? It’s simply the most powerful virtual automotive sales training in the world!

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The complete sales process...

How to sell a car today. No salesperson will be left behind, not knowing what to say or do when they get a customer.

Word for word – we’ll show them what to say from the greeting to the delivery!

How to close the sale, overcome objections and bypass price on the lot. We teach your salespeople the words and processes to handle every objection, including price, that comes up during the sale, closing and the negotiation.

How to build your business by phone / internet. Phones ring and leads come in daily, so we teach salespeople the complete processes of taking calls and leads and making outgoing contacts, to turn more lost sales into be-backs and more contacts into appointments that show.

How to follow up, prospect and retain your customers forever.

Again, word for word on everything they need to say and do to build your future business. JVTN® even includes a powerful, easy to use mini-CRM built just for salespeople.

JVTN® – The Easy Way To Grow Sales How would JVTN® benefit your dealership?

That’s easy ... you’ll make more sales & more money!

n More floor traffic at no extra expense n Put more internet & phone leads on the lot n Sell more units every month n Definitely improve your gross per unit n Lower your turnover in sales JVTN® is the only Automotive Online Sales Training with...

n Role Play Games and Timed Practice Sessions n Dedicated staff of Certified JV Training Coaches to help your team develop their skills n Training & Performance based Certification to turn your training videos into skills n Mini-CRM built just for JVTN® Subscribers – Joe's Virtual Sales Assistant® (VSA® )

Call now for a free JVTN® tour • 1-888-712-6647

Guarantee Your Growth!

For Dealers: Read this and understand your dealership’s true potential For A Job

ntial income and satisfaction ssion – if you do it right.

00,000 A Year? about cars?

n an office all day?

cisions – like buying a car?

ou can improve in sales?

el – with no limits? family?

n any community, anytime?

d most rewarding careers you a truly unlimited income, and Why? Because everybody has of them throughout our lives. who earn over $100,000 a year?

elling cars and I’ll show you ou have the right training and a velop the selling skills and the oking for.

ead this book and get ready to ear.

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MAKING THE RIGHT TRAINING DECISION

By Jeff Cowan

T

raining on any level can be an intimidating and daunting task. Questions like when to train, how often and who should be involved come up.

What type of training and who should teach and provide it also adds to the confusion. Most of the time, I feel that these questions become so overwhelming to both business owners and mangers, that the easiest decision to be made is the one that is made most – and that decision is to do nothing.

To do nothing is to put yourself and your business on the path to extinction. As has often been said in business, you are either growing or shrinking, and if you are not providing your staff with the latest in tools, processes, techniques and learning, then you are definitely shrinking your business. Deciding to train is the first step. Once that decision is made, the following steps will make it easier for you to get going.

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What Are You Trying to Do? First, identify what you are trying to accomplish. For example, do want to generate more sales? Do you want higher customer satisfaction scores? Better customer retention? All of the above? If the answer is to generate more sales, is it face-to-face selling processes that your staff needs or is it telephone sales training? Is there a particular item or product you are trying to move? Is there a new type of sale with which you are faced, such as selling from a display wall versus a service menu? The point here is that you want to narrow the focus of your needs as much as you can, so that once you and your staff experiences the training, you are getting specifically what you are looking for and what they need.

Who Can Help You? Second, determine who has the best product to fit your needs. If there is someone in the auto industry that has a training program that is tailored to your business, this is a bonus, but it should not be the only criteria by which your training is chosen. One of the best sales classes I ever attended was taught by a former insurance agent. Even though I never sold insurance and most of the examples that were used were based around that industry, I found that nearly all of what I learned was applicable to most sales industries.

Who Should be Included?

Third, decide who should go? Would you be best served to send the whole group, or just one person?

The advantage to sending the entire group is that everybody hears the message from the same source at the same time. However, if you or one of your staff

members has the ability to teach, instruct and motivate, you may be able to save money by just sending that one person. In addition, you do not want to leave anyone out. Let’s assume your staff needs telephone sales training. Who in the department answers the telephone? Since the sale starts as soon as the telephone is answered, does all of your staff know at least how to keep a potential customer on the telephone until the right person can answer? Can they make the sale if necessary? The point is to make sure that all who need the training get the training.

What’s the Method?

Considering how the training should be delivered is the fourth thing to consider. Is “in your dealership” the best way or would sending the staff to an offsite location be better? What method of delivery is best? There are many choices here, and the choice you make should be determined by a combination of what is being taught, the complexities involved in the subject, who is being taught and what method has the best track record.

Sometimes a combination of methods is the best way to go. For example, some of our best customers like to send their service advisors to a workshop first so that I can present the new processes and ideas to them. They then follow that up with an in-store visit to ensure that what they learned is clearly understood and that the advisors can and are using it. This is finally followed with ongoing, highly interactive online training where new methods, techniques and processes are taught and then reinforced and sustained through weekly meetings. Often dealers will select just one of these methods based on their needs, and are just as successful.

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What Do You Expect?

One of the most critical areas of providing training for your staff is the fifth step: Make sure the trainees know what you expect them to gain by being involved in the training. A pre-meeting agenda should be created and discussed with each individual as to why they are being trained, what they are expected to learn and what is expected of them once they complete the training. If possible, discussions should be held at the end of each session of training to further ensure that your goals are being met. Once the training is complete, yet another meeting between you and the attendees should be held to discuss and create a plan on how the new methods, processes and techniques are to be implemented. Time frames, standards and expected results should definitely be topics of discussion that are included in that meeting.

Who is Accountable?

Finally: accountability. This is the most often missed step. Once your staff completes any form of training, regular meetings should be held to guarantee they continue to benefit from the training by continuing to use what was taught. Too many times I find that companies invest in training and then expect their employees to install and enforce the training themselves. This is wishful thinking and rarely happens, since training usually requires change, and change is one of the things in life that most people fight. This is where regular and consistent follow-up meetings become paramount.

An idea that we find helps with making sure the training is used is to have a co-op and earn-back fee program for the staff. For instance, you could write

into their job descriptions and company policies that they will be required to invest a given amount ($500, $1,000, etc.) in their own annual training.

This money could be earned back by attending the training and passing all required and related tests.

You might even choose to increase the amount of earn-back above what they have invested based on the improved results that are gained by them using what was instructed in the training. This will not replace your having to manage the results, but it will make it easier for you since they will have an investment of time and money on the line as well.

If after reading these suggestions you still feel it seems like a daunting task to get training started, consider the following: If your training simply revolved around you and your team reading, training and holding discussions on one book a month for 12 straight months, you both would be in the top 25 percentile of all the intellectuals in the world. If you and your team read just five books on one subject, you both would be one of the world’s foremost leading authorities on that subject. If you and your team read for just 15 minutes a day – everyday, for one year – you can complete 20 books.

All things that are worthwhile in business take time, effort and investment. Even though training often seems like just a necessary evil, you can’t expect your staff to deliver the results you desire if you don’t show them how. CBT

Jeff Cowan

President of Jeff Cowan’s Pro Talk Inc.

INSPECT

WHAT YOU

EXPECT

Training without accountability is like a cake without icing.

It’s good but something wonderful is missing.

By Sally Whitesell

H

ave you ever gone to a fast food restaurant without someone delivering a word track?

Of course not. They are trained to deliver a word track for a reason. Do you think using a word track – or not – is a choice? What would happen if someone in your service department decided they didn’t want to use a word track because it’s “too pushy” or “they never buy anything” and “they probably don’t have the money”? Dealerships spend thousands of dollars training their employees, but all that training will be wasted if the employees are not held accountable for the processes. Accountability is critical to improving CSI. Often I go into stores and find every advisor running a business within your business. This is a big problem.

You now have many managers setting up their own processes, which causes anxiety for your clients and kills your customer satisfaction scores. There is no consistency. How can your guests rate your processes when they are treated differently every time they come in for service? How can you rate your advisors performance without standards? The following are some important steps to set up accountability processes on your drive.

1. Listen to their best practices and suggestions You probably have some very talented individuals on your team who can contribute to setting policies.

Studies have shown that employees who are included in the game plan are more apt to buy in. If they are a part of the process they will feel respected, appreciated and be much more likely to lead the pack.

2. Make sure they understand why consistency is important Have you ever noticed that customer surveys – no matter the industry – can be wildly different from one guest to another? Severe swings in ratings are a good indication that there is no consistency in procedures, training and recommendations. It is not unusual to find everyone in a store making different recommendations for each mileage increment based on what they feel is important. Imagine how confusing this is to your guests. Inconsistent recommendations will eliminate your client’s trust in your store and eventually lead to a low CSI.

3. Put your policies, procedures, consequences and rewards in writing We always recommend using a very detailed job description so there is never any question as to what you expect. Stating your policies, procedures and the consequences for not adhering to them will take any guesswork out of the equation. This should be reviewed one-on-one and used when hiring. Consequences are never fun but absolutely necessary.

If your job requirements are specifically outlined then the consequences should not need to be carried out often. On the flip side, rewards should be clearly stated also.

4. Outline minimum standards for the position This can only happen after the other steps have been put in place. Minimum standards are imperative to keep everyone performing. This is not a performance goal, but rather what each chair on your drive should produce based on past performance. As your group improves, the standards should be raised. Warning: Minimum standards that are not met have to have a consequence or else they are just another suggestion.

Some examples of consequences are a loss of bonus opportunity, more time off the drive and in training, or eventually a write-up – better yet an exciting promotion to being a porter.

5. Hold one-on-one coaching sessions Everyone likes to feel important, and face time with a manager will reinforce that you are interested in their progress and want to make sure they have the tools they need for success. Keep your door open and listen to your employees. Give them specific feedback on performance and goals while eliminating any gray areas. Learn each individual’s motivational triggers and use them.

6. Get rid of rebellious employees Negativity is poison in the service drive and is a sure way to kill your profits. Sometimes your most successful advisor is only successful because they have dragged everyone else down. Your drive will be much more productive if everyone works as a team and negativity is eliminated.

7. Lead by example First you have to step into the role of a positive motivating leader and then you need to show them how to keep commitments and follow through with promises. Your team’s growth and welfare should be more important than personal preferences and agendas. Put your people before your paperwork.

No matter how talented an employee may be, non-existent training, guidance and leadership will cause them to throw away their potential and waste what could have been a great resource for your business.

If you are having constant turnover or a lack of growth, the change may need to start with you! CBT

Sally Whitesell

President of Sally Whitesell’s Service Solutions

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ASK THE

At CBT News, we are fortunate to work with some of the best trainers in the industry.Whether it’s information on sales, service, F&I, marketing, management or fixed ops, our contributors are the go-to professionals for reliable, relevant advice for dealership personnel.

Donald J., Salt Lake City, Utah Q. What portion of my marketing budget, if any, should be spent on traditional advertising -- TV, newspaper, radio?

A. I think the question should be asked differently. It is not how much you are spending because the effectiveness of traditional, or what I call “Offline” marketing can depend on the dealer’s market. In some areas radio is very effective.

I have seen areas where the local newspaper draws significant business. I think the question should be asked in two parts: how are you tracking your results and do you really know what the reports are telling you. Dealers spend a lot of money each month on marketing because “we have always done it that way” without any real understanding of results.

What dealers need to invest in is the right education so they can have more relevant conversations with their vendors, as well as finding data tools that can help aggregate their reports, so it is easier for them to review them as a part of their whole marketing strategy, not as separate pieces.

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Wondering what’s the best way to increase sales in the service lane? Send us your questions at AskThePros@ cbtnews.com We’ll forward your inquiries to our ensemble of experts.

Patrick F., Madison, Wis. Q. What is the best way to compete against a nohaggle dealership?

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A. The best way to compete against “no haggle” is to bring a “Whatever It Takes” experience.

No one buys price. If the customer was done and wanted zero haggle, they would have made the order over the phone. The buyer is clearly not sold – closed – on a no haggle.

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CEO OF PCG DIGITAL MARKETING

ENTREPRENEUR AND NEW YORK TIMES BEST-SELLING AUTHOR

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