Car Biz Today February 2015 Issue by CBTNews

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

February 2015

ISSUE 11

BUSINESS

AND POLITICS

INTERSECT Tim Jackson, president of the Colorado Automobile Dealers Association, shares his organization’s strategy to influence policy makers in that state, and gives us a sneak peak at this year’s Denver Auto Show.

CONTINUING THE LEGACY AT SAM SWOPE AUTO GROUP

Patti Swope, president and CEO of The Sam Swope Auto Group is poised to continue and build upon the legacy her late father created. She discusses how she plans to fulfill Sam Swope’s vision to grow the company, but employing a different strategy. See page 20.

TIM JACKSON

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THE MYTHS OF WRITING SERVICE Part 2

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WHAT WINNERS DO TO WIN

NEW TECHNOLOGIES DRIVE F&I PROFITS Scott Karchunas, president of Protective Asset Protection discusses how F&I can capitalize on advanced automobile technologies.

DAVID LEWIS ...see PAGE 12

PowerDealer Your Go-To Source for:

SCOTT KARCHUNAS ...see PAGE 28

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Competitive intelligence • Improved sales • Increased profits

CAR BIZ TODAY M

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 Managing Editor Carol White

Dear Readers, By now I’m sure all of you who attended NADA’s convention are back at your stores ready to incorporate the innovative ideas you picked up in San Francisco. The CBT News team was at the convention covering the events, and interviewing some of the industry’s top executives. Visit CBTNews.com to catch all the interviews in full and see what trends to look out for in 2015. Also check out the photo pages in this month’s issue. In her article “Your Post-NADA Vendor Checklist,” Amy Farley offers practical tips on what you should be considering when choosing the best marketing vendors for your dealership. See page 22. Our dealer profile this month is on Patti Swope of Sam Swope Auto Group. With the retirement of her cousin Dick Swope, and the death of her father Sam Swope, Patti has taken the wheel of the 21-dealership group. Her vision for the company remains the same as her father’s. She, however, is implementing some culture and policy changes that she believes are more inline with today’s consumers and employees. Read about her plans for growth on page 20. If you have exciting things happening at your dealership, we want to know. Shoot me an email at cwhite@ cbtnews.com and let me know about your news and events. Your announcements could land on our Industry News page. Check it out. Have the best February ever!

CAROL WHITE Managing Editor

Associate Editors Russell Brown Danielle Banks Creative Director Simone Tieber Designer Betsy Alvarez Production Manager Jason Lowsy Creative Director - Digital Jay Roebuck Marketing Associate Roxanne Luhr Subscription Manager Tom Domagalski

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ethical way. Even with car margins continually shrinking, it is still possible to have a great career in the auto industry if you treat your customers professionally with respect and honesty. Acton Toyota of Littleton always puts the customer first and it shows. I’m very thankful to work for such outstanding managers, assistant general managers and general managers. They’ve given me all the resources and knowledge necessary to learn and grow to be successful in this industry.

SALES SUPERSTAR

WHAT ADVICE WOULD YOU GIVE SOMEONE NEW TO AUTOMOTIVE SALES? The best advice I could give

to anyone new to automotive sales is “be prepared to give it 110 percent.” The industry is simply too competitive to get into if your plan is to “go with the flow.” The industry is constantly changing – which I’ve been able to witness in just the three years I’ve been in it. You have to be flexible, persistent and positive to enjoy this career and have success with it.

NAME: STEPHEN POULIN DEALERSHIP: ACTON TOYOTA OF LITTLETON LOCATION: LITTLETON, MASS.

WHAT ARE YOUR INTERESTS/HOBBIES OUTSIDE OF THE DEALERSHIP? I’m in a rare circumstance

HOW MANY UNITS DO YOU AVERAGE A MONTH?

17/month is my YTD average for 2014 through November HOW MANY YEARS IN THE AUTO BUSINESS? 3

WHAT MADE YOU WANT TO BE A SALESPERSON IN THE AUTO INDUSTRY? I honestly never thought I

would get into the automotive business but I’ve really enjoyed it up until this point and love the competitive nature of sales. WHAT DO YOU LIKE MOST ABOUT YOUR JOB?

seen getting customers into our store is earning the customers’ trust. I’d say more customers than not have had a negative experience at a dealership previous to working with us. That combined with some dealerships not being completely transparent with their pricing on their vehicles (ex. including rebates in the price quoted that the customer may not qualify for) can create quite a challenge to

To date, this scholarship has given $50,000 to local area high school students to aid with their collegiate tuition. I wouldn’t have been able to graduate from college myself if it were not for scholarship money I have received.

Interacting with customers. The face-to-face time with customers is the most enjoyable aspect of the job. When you are stuck at your desk making phone calls all day or responding to emails your day can really drag. I really like the personal interaction with customers. When you are able to help a customer get into a new vehicle that’s going to meet their needs for years down the road and actually make the experience enjoyable for them, it makes the job that much more rewarding.

overcome. Fortunately for our store, our success has been built on our simple and honest purchase experience process, which has garnered us a great reputation and helps us close deals faster.

WHAT MOTIVATES YOU? One of my favorite quotes

TO WHAT DO YOU ATTRIBUTE YOUR SALES SUCCESS?

from Bill Belichick is, “Do your job.” I’m constantly motivated to always do my job – whatever task is in front of me – and do it to the best of my ability. The auto industry is best tracked by results and I want to know that whatever I put my name next to that I gave it everything I had. WHERE DO YOU FIND INSPIRATION? Across the

board, car salesmen have a terrible reputation of being dishonest, high pressure and not pleasant to deal with. I personally love that that is the general public’s perception of our business because everyday I get to shatter that notion by treating customers professionally and with respect. Honesty is truly the best policy in the auto industry and is a pillar of the mission statement at Acton Toyota of Littleton. It’s not just a word, it’s a driving force for us in our workspace and customers see that and appreciate it. WHAT’S THE GREATEST CHALLENGE IN YOUR POSITION AND HOW DO YOU OVERCOME IT? Working

in Internet sales, I find that the greatest challenge to overcome is getting customers into your store. In a lot of ways, today’s consumer has all the power. From the comfort of their own home, they can complete about 90 percent of the negotiation and purchase process. The greatest obstacle I’ve

in that I grew up in the town next door to our dealership. Because of that, I try to give back to the same community that helped raise me as much as I can. The past two years I have volunteered as a Pop Warner youth football coach and I am an active member of my church. Our Pop Warner team this year was a different age group than I coached last year, but we took the team from one win last year to 5-5 this year, which the kids were very excited about. At my church, I currently serve as a lector,

Any and all success I’ve had in the auto industry to this point can be directly attributed to the many mentors I’ve had guide me in the right direction. When I first got into automotive sales, I had no clue what I was doing. I’m really thankful that I had such great managers take me under their wing and show me how to be successful in this business the “right way,” and by the “right way” I mean the

which ironically is the same church I was baptized, received first communion and was confirmed in. In addition to that, I now oversee the Acton Toyota of Littleton Scholarship, which was the brain child of our dealer principal, Bob Moran; general manager, Glenn Hoffman; and CRM manager, Ben Koller. To date, this scholarship has given $50,000 to local area high school students to aid with their collegiate tuition. I wouldn’t have been able to graduate from college myself if it were not for scholarship money I have received, so it is humbling that now I get to play a role in assisting deserving high school students with, hopefully, what will be the necessary funds needed to pursue their higher education.

NOMINATED BY WELLINGTON PEREIRA AND BEN KOLLER Stephen is on pace to finish the year as our Internet department’s No. 1 volume sales consultant with the most number of new Toyota vehicles sold. He is proof that high sales volume and customer satisfaction are not mutually exclusive. One need only look at his DealerRater profile page and read the 76 exceptional customer reviews he has to confirm this. Beyond serving as an Internet sales consultant, Stephen heads our store’s entire social media presence and he was also promoted to Scion sales manager within the last six months. In essence, Stephen wears three hats: Internet sales manager, Scion sales manager and social media manager. He does them all at an exceptionally high level.

As if that weren’t enough, Stephen also heads the Acton Toyota of Littleton Scholarship. To date, this scholarship has given $50,000 to local area high school students to aid with their collegiate tuition. Outside of work, Stephen has volunteered as a Pop Warner Youth Football coach for the past two seasons. Do you have a salesperson or service advisor who pushes the envelope each month and lands at the top of the leader board? Does one of your professionals make considerable contributions to your community while maintaining a lead position in your dealership? We want to know! Send your nominations to the editor at cwhite@cbtnews.com and let us know why he or she is your store’s Superstar.

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News INDUSTRY

Bud Smail Recognized by Peers

C Classic Toyota Receives 25-Year Award

im Brown, center, president and dealer principal of Classic Auto Group, and his son, Jimmy Brown, left, vice president, receive a 25-year award for their Classic Toyota-Scion store in Mentor, Ohio, from Scott Wracher, Toyota Motor Sales U.S.A.’s Cincinnati regional general manager. (Photo courtesy of Classic Auto Group)

Mathews Auto Group Unveils Renovated Marion Store

larence “Bud” Smail, left, president of Smail Auto Group in Greensburg, Pa., was recognized for his industry accomplishments and community service by the Pennsylvania Automotive Association. In a ceremony, Smail was honored with the PAA Lifetime Achievement Award by the association. Presenting the award is Andy Scott, PAA’s 2014 chairman and president of Scott Family Dealerships in Allentown, Pa. Bud has been involved with the Greater Pittsburgh Dealers Association for more than 40 years, serving as its president in 1996. He was elected to the PAA Board of Directors in 1994 and served as chairman in 2002. Following that, he served on the National Auto Dealers Association from 2002 to 2013. Bud is also a member of the American International Automobile Dealers Association’s Legislative Grass Roots Initiative and was honored in 2001 with their Minute Man Award for his political and legislative involvement. He has been the chairman of the Pittsburgh Lincoln Mercury Dealers Association numerous times since 1970, was president of the Greater Pittsburgh Mercedes Benz Dealer Advertising Group and is a past president of the Western Pennsylvania Mazda Advertising Group. In 1993, Bud won the Time Magazine Quality Dealer Award. (Photo courtesy of PAA)

50 Years With Chrysler

wald Automotive Group’s Founder Emil Ewald received a 50-year award recently from the Chrysler Group at its Ewald Chrysler-Jeep-Dodge-Ram store in Oconomowoc, Wis. From left are Tom Ewald; Dan Ewald; Rocky Williams, area sales manager for the OEM’s Milwaukee region; Craig Ewald; Emil Ewald; and Brian Ewald. (Photo courtesy of Ewald Automotive Group)

athews Ford in Marion, Ohio, celebrated its grand reopening after completing a $2 million renovation, which began in March. The current store, built in 1963, now boasts a new service center and showroom. Employees and community leaders were on hand for the ribbon-cutting ceremony. Mathews Ford Marion is part of the Mathews Auto Group based in Marion. (Photo courtesy of The Marion Star)

Adam Moon of BMW of Westlake (l to r), along with Ken Ganley of the Ganley Auto Group and Westlake Mayor Dennis Clough cut the ribbon at the new store.

The new BMW of Westlake store sits just off I-90 in Westlake at 24690 Sperry Drive. (Photos courtesy of GCADA)

Ohio Dealer Opens New Store

he Ganley Auto Group opened its state-of-the-art BMW of Westlake, a 42,000 square-foot facility that incorporates green technology throughout the building. “This is the second largest BMW facility in the country and the largest in the central region for what is called a BMW ‘core’ facility,” says Adam Moon, general manager and center operator for BMW of Westlake. “It is as green as it possibly can be. It has heated floors and LED lighting that will shut itself down if it doesn’t sense motion for a certain period of time.” The dealership will sell three BMW brands, which include the electric “i” brand’s i3 and i8, the high performance M brand and the upscale BMW Alpina brand.

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COLORADO AUTOMOBILE DEALERS ASSOCIATION

Where Politics and Business Intersect

Under the direction of Tim Jackson, the Colorado Automobile Dealers Association has mastered the art of leveraging relationships for the betterment of, not only the state’s franchised new car dealers, but also the residents of the Centennial State. BY CAROL WHITE

f a dealers association is graded by the number of state legislative candidates it supported being elected into office, then the Colorado Automobile Dealers Association is at the top of its class. According to an article in the Denver Business Journal, CADA had an 87-percent success rate in supporting the winners of the 2014 elections. It came in second only to the Colorado Medical Association despite being ranked 14th in overall campaign contributions to winners with $27,000 in donations. “Dealer associations have become very influential, very reliable and very powerful in the state legislative process,” said Tim Jackson, president of CADA. “Obviously if you’re going to weigh in on a candidate and back them financially, you want them to be successful.” Jackson, who has 26 years of association management experience, joined CADA in 2004. In his role, he oversees the daily operations of the association and – since CADA and the Metro Denver Automobile Dealers Association merged in 2009 – the production of the Denver Auto Show, the third oldest show in the country. The impact of the show is tremendous for dealers, said Jackson, because it generates excitement in the marketplace. “We are the face of the industry with the auto show.” The flash and glitz of the Denver Auto Show, which is the second largest in the country, draws thousands to the Colorado Convention Center every year to see the best that our industry has to

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offer. This year’s show will kick off on April 8 and will once again feature the “Green Scene,” where more than 100 fuel-sipping green machines will be on display. There will also be pavilions showcasing electric cars and hydrogen fuel cells, in addition to plug-in hybrids that will be on display from 15 different brands. While there will be a focus on efficiency, fans of performance cars won’t be disappointed. They’ll be on display along with the industry’s newest pickups and small trucks. CADA generates most of its revenue from the auto show, which affords Jackson the ability to carry out the mission of the organization – advocating for the state’s 260 franchised dealers. “We, as a state association, are the eyes and ears of the dealer body before state policy makers,” he said. As the voice of Colorado dealers, Jackson uses the relationships he’s forged over the years to further their causes. Located just a few blocks south of the state capitol building, CADA’s office looks more like a small mansion than the home to the 100-year-old organization. Named after Jackson’s predecessor, William D. Barrow, the building was designed to be more than just office space. It was designed as an events facility to host dealer-related gatherings and meetings – a place where relationships with political and community leaders are fostered.

Tim Jackson, president of CADA

CADA GENERATES MOST OF ITS REVENUE FROM THE AUTO SHOW, WHICH AFFORDS JACKSON THE ABILITY TO CARRY OUT THE MISSION OF THE ORGANIZATION – ADVOCATING FOR THE STATE’S 260 FRANCHISED DEALERS. the good of the organization.” In addition to hosting meetings at its headquarters, CADA works to arrange grassroots meetings with dealers and members of the state legislature in their hometowns. Those meetings usually take place over breakfast, lunch or dinner, and involve anywhere from six to 10 dealers explaining to their representative the value of new car dealerships to the state’s economy. “We really engage our dealer body in that advocacy,” said Jackson. “I tell our dealers that I don’t know if it’s going to be next week, next month or next year, but at some point in time in the not so distant future, I’ll be calling you about a certain piece of legislation that’s in the Colorado Capitol and ask you to contact that legislator that you met with over breakfast, and tell them why that issue is important and why they need to vote on it in a certain way. This is where politics and business intersect. “There may be somebody else out there that dealers can buy bonds from and somebody else out there that they can buy forms from, and there certainly are other places out there that they can hold meetings. But the thing that there isn’t anything else of is that advocacy. There’s nobody else looking out for them under the gold dome of the Colorado Capitol. That’s the niche that we fill.”

PHOTO BY MICHELE BLAKE

The building is available at no charge to all trade associations, professional societies, non-profit organizations, political candidates and caucuses. “We took a different approach with the building,” said Jackson. “It’s an asset and it doesn’t depreciate through use. But what it does through use is get us exposure. So like the dealers are very active in their communities, we wanted to be active in the state community by providing the space.” CADA hosted more than 200 events in 2014. “When you’re that gracious, the word gets out,” he said. While some of the events hosted are social in nature, most are meetings held by community organizations such as Rotary Club, Kiwanis, Chambers of Commerce and other business and professional associations. Jackson takes advantage of these gatherings to educate the attendees on the impact the retail auto industry has on Colorado’s economy – like how 20 percent of the states sales tax revenue comes from the auto industry, or how new cars today are 99 percent cleaner in particulate emissions than they were 10 or 15 years ago, or how dealerships provide careers with outstanding income potential for citizens in Colorado. “I will personally speak at 80 to 100 of these groups each year,” he said. “It all ties together from a visibility factor to help us affect positive legislation for consumers and dealers in the Colorado Capitol.” CADA was able to successfully launch the Clear the Air Foundation (see related story) with the help of one of those groups, the Colorado Broadcasters Association. The real value, however, in offering up its building free of charge comes from the access CADA has to the state’s policy makes. “We have had legislators tell us that they’re in our building for meetings and events more than any other in the capital city, other than the capitol itself. We leverage the building as an asset in our effectiveness in the legislative process. The more legislators we host, the more exposure we get, and that goes to

Coloradans Can Breathe a Little Easier Thanks in part to an initiative of the Colorado Automobile Dealers Association, pollution in the state has been drastically reduced. BY CAROL WHITE

eing the eyes, ears and voice of the retail automotive industry is the primary objective of all state dealer associations. But under the direction of Tim Jackson, the Colorado Automobile Dealers Association has committed itself to another endeavor – improving the air quality of the state of Colorado through its Clear the Air Foundation. Unlike the federal Car Allowance Rebate System, or Cash for Clunkers program, which was initiated in 2009 as an economic stimulus program, Colorado’s program was born out of a desire to reduce the amount of harmful hydrocarbons being emitted by older vehicles. “Our Clear the Air Foundation was never intended to act as a consumer incentive or a way to sell more cars,” said Todd Maul, chairman of the foundation and managing partner of John Elway Dealerships. “It truly was our answer to assisting Colorado in getting our air cleaner for our communities and our citizens.” Pre-dating the Cash for Clunkers program, CTAF was formed in December 2007 in an effort to remove older, gas-guzzling, high-polluting vehicles from the roads, and then turning the proceeds from the program into scholarships for students.

George Billings Program Coordinator for Clear the Air Foundation

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“It’s a unique program,” said Jackson, president of CADA. “In fact, there’s no other foundation out there charged with taking these cars off the road, recycling them and turning the revenue into scholarships.” For years, Denver was plagued by some of the worse pollution in the country. In fact, the dirty air that hovered over the Mile High City had its own name – the brown cloud. While the stricter federal emission guidelines for vehicles implemented in the ‘80s drastically reduced the carbon monoxide and particulates released into the atmosphere, recent studies have shown that more can be done. University of Denver professor Don Stedman, Ph.D., found that just one older, “gross emitter” vehicle releases more hydrocarbon emissions that 100 newer, cleaner cars do. Getting the association’s 260 members onboard with the program was “brilliant” according to Maul. “It’s a beautiful public policy problem solved by the private sector. That’s what got the dealers very excited about it.” Members of the Colorado dealers association voted to contribute the first $200,000 in seed money to create the foundation, which is a nonprofit, tax-exempt charitable and educational organization. “Our dealers really stepped up to the plate,” said Jackson. He went on to explain that these older, highemitting vehicles were often wholesaled or sold to an independent car dealer down the street, thus keeping them in the system where they would continue to pollute the air. “So what we did was got our dealers to commit to take the cars off the road and recycle them,” said Jackson. CTAF partnered with the Colorado Broadcasters

GETTING THE ASSOCIATION’S 260 MEMBERS ONBOARD WITH THE PROGRAM WAS “BRILLIANT” ACCORDING TO MAUL. “IT’S A BEAUTIFUL PUBLIC POLICY PROBLEM SOLVED BY THE PRIVATE SECTOR. THAT’S WHAT GOT THE DEALERS VERY EXCITED ABOUT IT.” Association – to get the word out to residents of the state – and with the Colorado Auto Recyclers (CAR) Association to reduce the number of cars that go to state landfills. Eighty-four percent of a car is recyclable, so once a recycler has picked up a car from a dealership, it is allowed to salvage parts for resale. The engine and chassis, however are crushed and then sent to a metals recycling center. There the cars are shredded and metals such as aluminum, steel and copper are removed from the waste material and sold to steel mills and foundries both nationally and internationally. To date, more than 1,300 vehicles have been crushed with each vehicle bringing in an average of $300 each. That money goes toward administrative costs of the foundation and to help underwrite its scholarship fund. Finding qualified service technicians is a challenge for every dealer in the country. The foundation’s and CADA’s initiative is just one way to address that problem. The scholarships are awarded to prospective service technicians who are already enrolled or will enroll

in one of the state’s automotive technology schools. “The new technology in cars requires a more knowledgeable technician. We are here to take those ill-maintained, high-emitting vehicles off the road and help those technicians through school,” said George Billings, program coordinator of CTAF. “What better way to do so than removing the problem and working on the solution by providing scholarships from the scrape value of those vehicles?” In 2012, CADA voted unanimously to contribute another $1 million to create a permanent endowment for scholarships. Seven scholarships were awarded in 2014, and the foundation plans on offering 20 $2,500 scholarships annually. “The scholarships are going to assist us in getting the sorely needed technicians into our service departments,” said Maul, whose dealership donated a total of 41 cars in 2014, making it one of the largest dealer contributors last year. “We all want clean air and cleaner vehicles,” said Jackson. CADA and its CTAF can take pride in its effort to diminish Denver’s brown cloud.

Brian Pasch is now on CBT Automotive Network! TUNE IN EVERY WEDNESDAY

Brian Pasch, CEO of PCG Consulting, author of “Mastering Automotive Digital Marketing,” and one of the foremost authorities in automotive marketing, examines the latest topics and best practices that are changing the way auto retailers do business today. Brian interviews some of the industry’s brightest minds in the retail automotive business.

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before he gets up, does not know what he is going to say; when he is speaking, does not know what he is saying; and when he has sat down, doesn’t know what he has said.” When you are talking with your customers ask yourself two questions: “What do I want them to know?” and “What do I want them to do?” You are much more likely to stay on track and get to the point. Say it clearly. Most people are persuaded by what they understand. When you speak clearly and simply, people can understand more of what you are trying to communicate.

CREATE AN EXPERIENCE A connection is created by honest communication that benefits both parties and is enjoyable. In order to get your message across you have to learn how to communicate in someone else’s world. Taking this one step further, consider how your contact with customers can be taken to the next level. People are looking for and value meaningful and positive experiences in their daily interactions. (See ways to create an experience) Ultimately, we are all in the people business. Every point of communication with a customer will either build on strengthening our connections or will chip away at the relationship. Whenever you can help other people to understand that you genuinely care about them, you open the door to connections, communication and interaction. You begin to create a relationship. And from that moment on, you have the potential to create something beneficial for both you and them, because good relationships usually lead to good things: higher loyalty, greater retention and increased profits.

REAL Success – R is For Retention If you want to increase customer retention in your dealership, focus on communicating with them to form a connection BY BRENDA STANG

ustomers don’t care about you until they feel that you care about them. As harsh as this may sound, once you understand this, you will be well on your way to appreciating that connecting with people is the major determining factor in retaining your customers. Retention goes above and beyond the sale of a vehicle or the providing of service and parts. It’s not enough just to work hard. It’s not enough to do a great job. To be successful, you need to learn how to really communicate with others. But it goes further than just communicating. The end goal is to connect, to identify with people and relate to them in a way that increases your influence with them. When you connect with others, you position yourself to make the most of your skills and talents. Your ability to connect will inspire loyalty. Three practical ways to connect with others is through finding common ground, keeping your communication simple and creating an experience.

Every point of communication with a customer will either build on strengthening our connections or will chip away at the relationship. FINDING COMMON GROUND You are providing a product or service and you know that the customer has a need for it. Find the area where you can connect your product with your customer’s needs. What most people really want is to be listened to, respected and understood.

Begin with asking questions to identify common interests and experiences. Listen to understand your customer’s interests and point of view. Learn how they think, what they feel, how they’re likely to act and react in a given situation. By becoming a good listener you will earn the opportunity to help them. Always bring something of value to the conversation and at the close of a conversation, ask if there is anything you can do to help them – and then follow through. Your actions live longer than your words. When your customer feels understood you can tell your stories, share emotions and offer lessons learned from those experiences. Make sure you are sharing stories and experiences that connect with their interests. Always make the conversation about them.

KEEPING YOUR COMMUNICATION SIMPLE Talk to people – not above them. That’s not easy to do. Our industry is full of jargon and often it is too easy to fall back onto technical terms. Always be looking to explain what your product or service does and what it means to them in the simplest terms. The biggest compliment you can get is that your customer understood everything and it made sense. Get to the point. Winston Churchill once said about a colleague, “He is one of those orators who,

Ways to Create an Experience MAKE THEM FEEL SPECIAL

People will turn away from businesses when they feel like they are just a number. When you listen to understand, you can make note of personal and business items that are important to your customer. Refer to these in future conversations and make them feel special.

USE HUMOR

People will gravitate to businesses and people who create a fun-loving atmosphere. It doesn’t have to be non-stop yuk yuks, but inject humor and light heartedness when you can. Your customers will look forward to your calls.

LEAVE THEM POSITIVE

Look around and you’ll see the negative news stories and messaging that is going on in our world today. You have the golden opportunity to stand out as a positive force. Even when you are dealing with problems with customers, the way you communicate can change their perception of you and their problem. Always remain upbeat, positive and helpful – your customers love that and they’ll keep coming back for more.

BRENDA STANG Chief Shifter at Shifting Gears Training After 19 years in the dealership world, Brenda shifted a gear and started an organization to train and coach dealership managers. During her time in the Ulmer Auto Group she worked with GM, Toyota, Nissan, Dodge and Chrysler stores. As Managing Partner for two of the top GM dealerships in Western Canada for the past 14 years, Brenda worked with her management teams to develop and practice the best habits to be effective and efficient. Brenda is a Certified Trainer, Coach and Speaker with the John Maxwell Team. You can reach Brenda at BrendaStang.com.

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WHAT WINNER LEADERSHIP

Winning in business and in life is dependent upon your approach to your goals and dreams BY DAVID LEWIS

“A PERSON EITHER HATES LOSING

ENOUGH TO CHANGE, OR HE HATES CHANGING ENOUGH TO LOSE.” — Orrin Woodward, co-author of the New York Times bestseller Launching a Leadership Revolution.

ome people are convinced that we are either born to win or born to lose and regardless of what we do, the die is cast for most of us. However, I don’t believe you, the reader, are that kind of person so I am going to assume that you will read this article and give careful consideration to the things you will discover. First, let me say that by using the term “Winners,” I don’t mean those who have made a vast fortune and are famously wealthy. Likewise, when I use the term “Losers,” I am not referring to those who aren’t famous and rich. I use these terms in reference to those individuals who have a vision for where they want to go in life. One can either make it or not by the things they do and the way they approach their goals and dreams.

BEING A WINNER IS A CHOICE IN WHICH ALL OF US HAVE THE POWER TO MAKE. IT IS UP TO YOU TO CHOOSE TO SUCCEED OR NOT. 12

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RS DO TO WIN Certainly, no one would say that Mother Theresa was a loser because she was a poor nun from Albania living in the slums of India taking care of the sick and dying poor. She had a clear vision and dream for what her life was about and she fulfilled it far beyond what anyone would have normally expected from a woman of her background, size and stature. In contrast, who would call Bernie Madoff a winner? Yes, he accumulated a huge fortune running his investment house Ponzi scheme, but he also bilked billions from investors in the process and was eventually sent to prison, where he is now serving a 150 year sentence. Being a winner or loser is based on what you want to accomplish in life, the approach you take and the sacrifices you make to see that your dreams and goals come to pass. It’s about your own idea of success and what you are willing to do to obtain it. Further, it is what kind of person you become once you have reached your goals in life.

WINNERS SAY, ‘IF IT’S TO BE, IT’S UP TO ME.’ LOSERS SAY, ‘IT IS WHAT IT IS.’ Being a winner is a choice in which all of us have the power to make. It is up to you to choose to succeed or not. Along with that choice, is a commitment to responsibility. You don’t become a winner just because you want to; you either make it happen or it will not likely come to pass. Winning starts in the mind. It starts with how you think and what you allow to influence your thoughts and actions. It is a decision you make to hitch your dream to the front of your wagon and let it pull you to the place you want to go. Your dreams will greatly influence the things you believe, how you carry yourself and the way in which you live your life. It is always out there beckoning you and calling you to take the next step that will bring you closer to your goal. It challenges you to learn, to continue to grow and to make the changes that will take you to the next step in your life journey. Losers have dreams and goals too, but they don’t make the commitment it takes to see them through. They say, “If I am supposed to have it, I will get it.” If I am supposed to accomplish my goal, nothing can stop me. They believe it will just happen. A loser isn’t drawn onward by the dreams or goals they have, it is just something they would like to see happen and if it doesn’t, so be it. WINNERS ARE NOT AFRAID OF LOSING. LOSERS ARE AFRAID OF WINNING. Winning is hard. It challenges everything within you, and sometimes you get there on the installment plan with temporary failures along the way. Winners don’t see failures as an end; they see them as a temporary learning experience on the way to their ultimate goal of success.

Mark Cuban is a good example of someone who understands the value of failure. As a young man, Mark’s parents wanted him to have a normal job. He tried working as a carpenter, but he hated it. He was hired as a short order cook, but was terrible at it. He then waited tables and could not even open a bottle of wine successfully. The now billionaire owner of the NBA’s Dallas Mavericks eventually started a computer consulting business called MicroSolutions which made him a millionaire when he sold the business to CompuServe in 1990. He then developed a video streaming company which Yahoo eventually purchased for billions in Yahoo stock. It does not matter how many times you failed, because you only have to be right once. The idea is to learn from your failures. Losers are afraid of winning. They talk about winning and even make an occasional stab at it. They want the rewards of success, but not enough to stay the course and make the changes required to win. Losers fear winning because they know that it is often accompanied by great responsibility. They know that once you have gained a foothold in achievement, you then have to manage your success, and losers don’t want to commit to the challenges that go along with winning.

Winners accept challenge as par for the course. They see opportunity all around them and just wonder which one is the best one of which to take advantage. Losers need proof before they will do anything and will not take a risk if there is any chance that it might not succeed. They see the negatives as justification for non-action and would rather take a lesser portion with little risk than to risk much and go for the brass ring. Winners always search for change, they respond to it and then exploit it as an opportunity. They understand that with every change comes another chance to advance themselves and profit from it.

WINNERS HELP OTHERS BECOME SUCCESSFUL. LOSERS ARE ONLY INTERESTED IN THEIR OWN SUCCESS. There is great news in this message for anyone who wants to achieve more in life. There is always someone who went before us from whom we can learn. Winners love to share their success with others and help them become successful. They aren’t threatened by enriching the lives of others; they are strengthened and reinforced by it. It adds value to their own success and gives validation to the things it took to get them there. By helping

WINNERS KNOW THAT AN ATTITUDE IS LIKE A MUSCLE. IT MUST BE DEVELOPED AND STRENGTHENED BY CONTINUOUS DISCIPLINE AND REPETITION. WINNERS SEE OPPORTUNITIES. LOSERS SEE ONLY THE PROBLEMS. Most of us are familiar with the glass-half-empty and the glass-half-full theory and know that our view of life is often what determines the outcome we experience. Our attitude and view has tremendous power to affect where life will take us. Just as exposure to certain things can create our perspective on life, we can also change it by what we expose ourselves to on a consistent basis. Winners know that an attitude is like a muscle. It must be developed and strengthened by continuous discipline and repetition. The more we do something, the easier it is to do it. The more we view things from a positive perspective, the easier it is to keep that perspective in view. Losers tend to expect a negative outcome. Their overly cautious attitude is often the determining factor in the way something will turn out. They start with doubt and proceed cautiously. If there is too much resistance, they turn and run as though they saved themselves from making a big mistake.

others, we ultimately help ourselves. That is the Pay It Forward message – and it is real. But remember what Orrin Woodward said: “A person either hates losing enough to change or he hates changing enough to lose.” You can’t change others by direct action, but the changes you make in your own life can start a chain reaction that will ultimately affect everyone around you. Keeping that perspective in mind, winning presents all of us with the same challenge: If it’s going to be, it’s up to me. DAVID LEWIS President of David Lewis & Associates 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 industry-related books, “The Secrets of Inspirational Selling,” “The Leadership Factor,” “Understanding Your Customer” and “The Common Mistakes Automotive Salespeople Make.” Visit his website at www.DavidLewis.com.

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5 LEADERSHIP

Things Every Leader Must Do

A dealership built on ‘Foundational Leadership’ will allow your organization to grow and prosper. BY CHRIS ROLLINS

eadership seems to be a popular buzzword these days. However, in order to create a true culture where leadership is modeled, expected and lived out on a daily basis, it is going to require being far more than simply another “course” that was taught once in a list of variable offerings. Leadership is not just another part of the process. It is the foundation that everything else is built upon. Think of it as a part. If the part is a set of ceiling tiles in the showroom of your dealership, leaving a few out may cause some issues that require dealing with, but it isn’t going to halt your entire operation. However, build your dealership on the dirt without having a solid concrete foundation beneath your feet and the building is not going to stand at all. One of the 21 Laws of Leadership by John Maxwell, the Law of Solid Ground, addresses this point. John says, “When it comes to leadership, you just can’t take shortcuts, no matter how long you’ve been leading your people.” There are five skills that every leader needs to continually develop in order to maintain a solid foundation that will allow their organization to continue to grow and expand.

Understand People

Enlarge People

Navigate For Other People

This area is huge for leaders who want to reduce turnover, improve employee relations, customer satisfaction ratings and revenues. In fact, it has the potential to positively impact just about every area within your dealership, to both your internal and external customers in the front and back end of the business. Effective leading is not as much about convincing people to see things your way, whether that is leading employees or leading your customers through the sales process. One of the biggest issues cited in survey after survey is not that people are looking to always come to agreement, but simply that they want to feel understood. I have heard it said that when leaders seek first to understand, then to be understood, they establish the solid foundation needed for a strong relationship to be formed. That process works the same when dealing with employees and customers alike.

Unless you are capable of running every aspect of your dealership alone, which effectively eliminates all of us, you need people. As a leader, you need them to excel in order for the entire organization to reach its true capability. John Maxwell stated, “When you enlarge others, you seize an opportunity to help them reach their potential.” Leaders understand that when each individual part of the organizational structure reaches its full potential, the unit as a whole is enabled to begin to stretch and grow toward levels of growth not achieved before. An important point leaders must acknowledge is that time is a finite resource. It is paramount that leaders provide support and resources across the board to enable every employee to have the opportunity to reach new heights. However, they should commit the majority of their time pouring themselves into those people who have demonstrated the personal commitment to grow and develop. This keeps a leader from wasting the most precious resource available – time.

Think of a leader as the GPS system for the dealership or area of responsibility. Once the desired destination has been established, the leader clarifies the route that is going to be taken, and the team begins the process of moving toward that direction. Many leaders mistakenly think they need to keep their hands on the steering wheel at all times. While steering is essential, anyone can be taught how to steer the vehicle. As the leader, your job is to navigate the course. When unexpected construction zones or other obstacles block or impede the progress desired, the leader is the one providing the course correction – “Recalculating,” as the GPS would say – to help shift the direction while ensuring the team is still moving toward the same desired destination. A big mistake I see far too often is that leaders often try to have the entire path perfected before taking action. That is a critical error. Try having a leader sit behind the wheel of a vehicle on the lot while in park. Turn the wheel in every direction possible. What changed? Nothing. However, once you shift gears and begin moving forward, turn the wheel and the vehicle navigates the turns around the lot according to the command given by the driver. Leaders need to realize that true navigation does not take place until motion is introduced into the equation.

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THE OLD “COMMAND AND CONTROL” STRUCTURE OF MANAGEMENT MAY PRODUCE SHORT-TERM RESULTS. HOWEVER, THAT MODEL DOES NOT CREATE AN ENVIRONMENT CONDUCIVE TO EMPLOYEE OR CUSTOMER SATISFACTION.

4 Connect With People Why do so many people fail to truly connect with employees and customers in a way that creates a solid business relationship – one resulting in better employee relations and higher sales conversions? Understanding was the first key discussed. Connecting happens when understanding is taken to the next level. Every employee and customer has his or her own unique personality style. While understanding the model of human behavior certainly helps a leader recognize the differences, respecting those differences so that you communicate with them based upon their needs – and not your own – is how you truly connect. For those who have been properly trained on the model of human behavior, adjusting communication methods to adapt to other’s recognizable styles is an essential component of leaders who want to consistently produce high performance teams. And it’s equally important for sales leaders who want to convert more visitors into customers for the dealership and achieve top tier sales results on a consistent basis. Leaders who learn this crucial skill set find themselves able to relate and achieve results with employees and customers at a level far above those who just communicate in their own style and expect others to adjust to them.

Empower People

For leaders to multiply other leaders, they must empower others. The old “command and control” structure of management may produce short-term results. However, that model does not create an environment conducive to employee or customer satisfaction. The millennial generation in particular, which is an evergrowing part of the employee and customer base, will take their talents and spending dollars somewhere else when they recognize this culture in effect. They want to be inspired, not controlled. Empowered employees are easy to recognize. There are organizations today where the employee has the ability to resolve a customer issue on the spot in the way they see best because they have been empowered to do the right thing. An empowered culture is obvious to the customer when they notice that there is no need to “go ask permission” for every little thing. There are obvious controls that need to be established, but empowered employees realize they are being given the freedom to succeed. When they do fail, they will receive the appropriate feedback and corrective action, but that is the best way to learn and develop. When they can do so without the massive fear of repercussion, they begin to feel like they have their own small piece of ownership in the outcome.

Focus on each of these areas as a leader and you will see impossibilities vanish and renewed energy from your team that is ready to crush the goals placed before them.

CHRIS ROLLINS “The Conductor” President of Rollins Performance Group Chris has more than 17 years of sales and operational leadership experience and has been personally trained and mentored by such leaders as John Maxwell, Jeffrey Gitomer and Les Brown. He is focused on developing leaders and sales teams to achieve exceptional top and bottom line growth by building sustained momentum, which becomes an unstoppable force. Helping leadership and sales teams “deliver the goods” is why he became known as The Sales Train Conductor. Visit his website at RollinsPerformanceGroup.com.

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When your customers bring their cars in for service, you hook them up to the computer to find out what is working or what needs adjusting. Why not do the same things to improve customer service for your dealership? your team’s communication supporting your vision of service? Do you see you are not following up on leads after seven days? Why is that? Are you understaffed? Are you allowing people to stare out the windows instead of working the database? If you are answering “yes” to any of these questions, it is usually because of one of two things. You either have a process and no accountability, or you have no process and people are just working the way they feel is best to reach a sales number. Not only does this negatively affect customer service, but it forces dealers to spend more money to get more fresh ups and hope to find a few laydowns.

MARKETING

It’s Time For a Customer Service Health Checkup Now is the time to let the past go, focus on what you can control and create an exceptional 2015 for your staff and customers. BY GLENN PASCH

fter a month into the new year, you may still find yourself with a warm glow from celebrating a great 2014 – or a little more motivated to recover from some disappointment. Before heading any further into the year, you should give your marketing and processes a diagnostic checkup. When customers bring their cars in for service, you hook them up to the computer to find out what is working or what needs adjusting. Why not do the same things to improve customer service for your dealership?

Ask them about their experience. Was it easy to find the vehicles? Was there enough information about the vehicle and was it useful? Were they compelled to contact the dealership? Could they see your “why buy from me” message? Then, give them similar cars to find on your competitor’s site and ask the same questions. Take these results and work with your marketing or website provider to help implement the changes needed to give your customers an easier shopping experience.

PRE-CHECKUP: GET AN OUTSIDE OPINION A qualified advisor can help audit or interpret what your current list of vendors is doing. Let them see how your team is executing their sales process and where you can become more efficient. Investing in a marketing coach can help you hold your vendors and teams accountable. Many dealers have a lawyer or accountant on retainer; why not invest in someone to be the expansion of your marketing/process teams? An outside voice can clearly impact and help maximize spend and performance.

SECOND CHECKUP: MIRROR SHOPS Mirror shops can be conducted by either you, your BDC manager or GSM. Open up your CRM and randomly choose three to four leads for each salesperson. Match up their execution of the sales process to what the sales process is supposed to be. See what you find. Just because your OEM gives you credit for stopping the clock does not mean you are following a correct process. Is there a common place where all communication falls off? Are you missing out on opportunities? Is

FIRST CHECKUP: YOUR WEBSITE You get so buried in your own business that you stop seeing website issues that may be right in front of you. Here is a quick way to see how easy it is to navigate your site: give a trusted friend a list of three or four vehicles and ask them to find them on your site. 16

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LAST CHECKUP: THE 30-SECOND CHALLENGE This is one of the most effective tools to see what level of customer service you deliver. At various times during the day, stop and stand in a different location for 30 seconds. Listen to how your receptionist is answering the phones. What are your salespeople saying to customers? What are salespeople or employees saying when they think no one is listening? Are you happy with what you see? Remember that you are seeing and hearing exactly what your customers see and hear. Taking this 30-second challenge each day slows you down and allows you to really see what is going on in your dealership. BONUS CHECKUP: TIME YOUR SALES PROCESS We have heard talk about how the sales process has to change. Some large dealer groups are committing to a shorter timeframe to complete the process once the car is chosen in order to help improve customer service and address the growing demand to make car buying easier for customers. Customers don’t mind test driving and looking for the right vehicle. However once the car is chosen, they hate all the hours and paperwork it takes to drive their new vehicle away. When was the last time you timed your sales process from the time the car was chosen to the time it was delivered? Was it three hours? Four hours? Are there ways to cut that time down? If you begin to think about this in 2015, you will be ahead of your competition when the time comes – and your customers will appreciate it. The goal of this diagnostic checkup is to help improve your service in 2015. Customers are doing a lot of research online, and once they begin moving down the funnel and communicating with you or visiting you onsite, everything needs to work in unison to provide not only great customer service, but also an easy and fun experience.

GLENN PASCH CEO of PCG Digital Marketing 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 www.pcgdigitalmarketing.com

JOE VERDE

The #1 Training Company In The Car Business

DOUBLE YOUR NET PROFIT IN JUST 90 DAYS

Joe Verde

ost dealers and managers are looking for profit in all the wrong places…That’s why the ‘net’ doesn’t usually follow your improvements in units and gross. Take a look and see how to double your net. Your Baseline... All of the business expenses you have right now, including payroll, employee benefits, your flooring, and all of your existing advertising and marketing costs are in place and are accounted for on your financial statement.

As a dealer, use these strategies to increase your good gross and double your net profit within 90 days. If you’re a manager or salesperson, do the same to double your income. Get my new book and make 2015 your most profitable year ever. How can I generate more ‘Good Gross’ today?

1. Improve our number of demos to increase our unit sales and gross = good gross

To increase your net, look at your expenses and profit now as your baseline. Then look for future improvements that generate good gross and improve your net profit.

2. Build more value and focus less on price to raise our gross profit = good gross

Good Gross...

3. Improve our desking skills and process to maximize sales and gross = good gross

When you make any additional sales that do not add any extra expense, or when you improve your gross profit… 60% becomes net profit That’s why it’s called ‘Good Gross’. Your only expense for the extra sales and extra gross is your sales and management compensation of about 40%. Looking for profit in all the wrong places Improving profits is easy, but there’s so much we weren’t taught about managing sales for profit that causes dealers to waste the majority of their time, money and hard work focusing on the wrong things. Use my new book, “Double Your Net” in your weekly management meetings and you’ll improve your sales, your good gross and your net profit. We teach this and so much more in our Team Leadership workshop for dealers and managers. In fact, it’s the most important and valuable management course you and your managers will ever attend, so call us today!

4. Improve our selling skills and selling process to increase our delivery percentage = good gross 5. Improve our selling skills and our unsold follow up process to bring more be-backs into the dealership 6. Improve our selling skills and our process for sales calls and leads for more appointments that show 7. Improve our daily prospecting skills and prospecting activities to drive more no cost, high value customers into our dealership = good gross

Your Best Tool For In-Dealership Sales Training

What is JVTN®? It’s the most powerful virtual sales training in the world! What would Joe Verde teach our salespeople? The complete sales process... n 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! n How to close the sale, overcome objections and stay off price on the lot to build value.

We teach your salespeople how to handle every objection – including price questions and price concerns that come up during the sale, closing and the negotiation. n How to build your business by phone. Phones ring and leads come in daily, unfor-

tunately most don’t end up as deliveries. We teach salespeople how to take calls and leads and make outgoing contacts, to turn more lost sales into be-backs and more contacts into appointments that show. n 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.

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I read a stat from Ford that it’s 5 times cheaper to keep a customer than to get a new one. Add in 40% extra gross for repeat, referral or outside prospects your salespeople bring in, and you have a gold mine just waiting for you to start digging. The catch – you have to dig! Advertising cheap pricing may get you the first sale, but it’s the continuous contact with the customer by the person who made the sale that develops your repeat business. Regular contact and real customer support by well-trained salespeople will generate more income & future business than anything else you can do. And, that’s exactly what you have to do if you want to build a base of customers. I understand the importance and value of staying healthy, so I work out with a personal trainer. Sure, I know enough to go it alone, but I won’t be as consistent or effective to get the results I know are possible. When you get tired of hit-and-miss attempts to train and implement the sales process in your dealership, let us become your personal trainer for one year and you’ll be shocked at what you’ll accomplish.

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Management Workshops n Team Leadership This is the critical class managers never got on “Sales Management.” Attend this workshop first. n Negotiating & Desking Improve your sales and gross with this easy ‘customer friendly’ 3-Pass Desking Process and increase Satisfaction Scores at the same time. n Train The Trainer You train to improve & grow. If you don’t train, you don’t & you won’t! Sign up today.

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MARKETING

USING CUSTOMER-CENTRIC WEBSITES TO BOOST SALES Forward-thinking dealers will utilize improved technologies to turn website visits into increased sales. BY DENNIS GALBRAITH AND GINO CIPPERONI

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ealers hear a great deal about new technology, but the issue that is of paramount importance is moving customers closer to the sale. More of those customers than ever before are visiting dealer websites, and savvy dealers are making bold new moves to capitalize on a higher percentage of site visitors than ever before. The changes involve innovation in content, design, technology and even a key move back to an older way of doing business.

CONFIGURATORS Vehicle configurators have been popular with many shoppers since the early days of automotive Internet. Nearly every manufacturer has provided shoppers a method of configuring their preferred vehicle since at least 2000. What dealers lacked was their own configurator on their own site with no risk of losing the shopper to competing dealers. Today, some dealers actually have configurators on their sites that are superior to their manufacturer’s configurator in meeting customer needs. CALCULATORS Payment calculators existed on dealer sites for many years with no improvement to usability. The shopper was required to know what interest rate they qualify for. Clearly, very few do when they arrive at the store, no less while they are on the dealer’s site. Today, dealers are beginning to add payment calculators based on the shopper’s credit score and the dealer’s actual lending tables. With CreditMiner integration, dealers can know the shopper’s exact credit score without asking for their Social Security number. Both the shopper and the dealer know exactly what terms and interest rate the shopper qualifies for, as well as the resulting payment. EASILY SHARED INFORMATION Vehicle Detail Pages (VDPs) have relied heavily on photos, videos and seller’s notes to meet the information needs of shoppers. But savvy dealers are thinking beyond the information needs of the site visitor themselves. Most vehicles are not purchased by a single individual, and the site visitor is very likely to be the more committed of the decision makers. To sell more vehicles, dealers provide much more information than ever before and do so in a manner making it easy for one

listed on the dealer’s site, but categorized using tabs and titling for ease of navigation shoppers never enjoyed before. As the amount of information increases, navigation on dealer sites becomes more important than ever.

PREFERRED LANGUAGE OF CUSTOMERS All of this is lost if the site is not presented in the preferred language of the shopper. For example, the number of Spanish speaking shoppers continues to grow each year. Translation technology exists, but is imperfect at best. Studies have been performed to see how natural Spanish speakers react to basic translation of a website (i.e. the kind many dealers have now). There were a few key findings worth pointing out.

HAVING A SPANISH SITE BUILT FROM THE GROUND UP TO REACH OUT TO THIS LARGE AND AFFLUENT DEMOGRAPHIC ALLOWS YOU TO COMMUNICATE TO THIS GROUP IN A WAY THAT YOUR COMPETITORS AREN’T. It has been shown that direct translation can polarize some members of a community as it results in an inauthentic voice. With simple translation tools, the voice of the site changes to something that sounds broken and incoherent to a native speaker. This is viewed as off-putting and actually does more harm than good. When we look at the data, acculturated Hispanics tend to prefer Spanish advertising, labeling and signage for informative reasons, but also because they feel respected (57 percent) by companies that demonstrate appreciation of their heritage and culture through Spanish advertising and dedicated Spanish websites. They exhibit greater loyalty to these brands (53 percent). More surprisingly, Hispanic adults who are English dominant and consume media in advertising, also tend to perceive companies that market and advertise in Spanish positively; not for their utilitarian benefits, but for deeper emotional implications such as “respect of my heritage” (29 percent) and “appreciation for my culture” (26 percent). Simply using Google Translate tells these users that you want to offer

WHAT DEALERS LACKED WAS THEIR OWN CONFIGURATOR ON THEIR OWN SITE WITH NO RISK OF LOSING THE SHOPPER TO COMPETING DEALERS. shopper to share the information with the other. Downloadable brochures and owner’s manuals are a case in point, but many dealers also show the awards and accolades attributed to the vehicle, the NHTSA crash test ratings, and EPA green scores. Virtually no dealers provided this information a few years ago. Now the practice is becoming increasingly common among leading dealers. Features and specifications are no longer simply

we look at the data, we see that Hispanic searchers who communicate exclusively in Spanish tend to share more promotional and high-equity content than those who prefer to communicate in English, and even more still than general population influencers. This means that building a Hispanic following today has a very good chance of growing into a very strong referral network as years go on. The bottom line here is, as we look to the future, more and more businesses will have full Spanish sites. Getting to the party early gives dealers a chance to dominate this growing market and make it difficult for competitors to catch up once they finally get on board. A superior website opens up additional opportunities for driving traffic to the site. With

them a good experience, but don’t want to put in the time and effort to do it right. Having a Spanish site built from the ground up to reach out to this large and affluent demographic allows you to communicate to this group in a way that your competitors aren’t. This gives you a huge leg up in your marketplace, not just now, but years from now as you begin to develop a solid reputation amongst the Hispanic community in your area. If

higher percentage of shoppers to the site converting to store contacts, a plethora of digital advertising options begin to not only make sense, but also offer superior return on investment to leads acquisition, third-party listings and traditional advertising. With a Spanish language site, there are a number of reasons to invest in Spanish paid Search. Spanish language paid search offers a huge opportunity to reach users who are only searching in Spanish, but do it in a way that is extremely cost effective. If we look at the data, we see that, on average, dealers’ average cost per click for a Spanish language search campaign is between 100 to 200 percent lower than the CPC of an English paid search campaign. This means that dealers can effectively reach this audience with a much smaller budget, while still maintaining a high rate of return. Not only does Spanish language paid search cost less than English paid search, but it also allows you to be first to market in an area often overlooked by traditional marketing. Traditional media sources – especially radio, magazines and newspapers – see higher levels of consumption in Spanish than digital media, but Spanish speakers are also very active online. This gap is likely due to a deficiency in the availability of Spanish-language digital media, which may lead consumers who prefer Spanish to engage with English media first. Offering reliable Spanish-language resources may be a good way to reach some under-served Hispanic communities. As it has always been, great marketing starts with a focus on shoppers and meeting their information needs. Technology has not, and will not, change that. Technology works best for the marketer when it improves shopping for the customer. Leading dealers recognize that many shoppers want to explore vehicles with a configurator, don’t know their financial options and need expanded information to persuade their partner. As fundamental as any other marketing element, shoppers want to shop in their preferred language.

DENNIS GALBRAITH CMO at Dealer e-Process

GINO CIPPERONI Digital Marketing Specialist 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.

As a Google and Yahoo/Bing Certified professional, Gino puts his economic and statistical training to work for auto dealers. He has worked with hundreds of dealers across the U.S. and Canada to help them figure out the most optimal way to allocate their advertising dollars and generate results. Visit the website at www.dealereprocess.com.

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CONTINUING THE LEGACY DEALER PROFILE

“I THINK ABOUT THINGS, I CONSIDER THEM CAREFULLY, BUT I DON’T DELAY. I DON’T HAVE ANY TROUBLE MAKING DECISIONS.” – Patti Swope, President and CEO of the Sam Swope Auto Group

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am Swope was known in his community and the auto industry as a savvy businessman. To his daughter, he was a wonderful mentor who taught her the principles she needed to pick up where he left off. “My father was a very disciplined person,” said Patti, who took the helm of Sam Swope Auto Group in January. “He believed there were certain things you did and certain things you didn’t do, and he knew exactly what those were. So I learned a lot of really great, solid business principles that are a foundation for me.” In a 1985 interview with the Louisville Business First, Sam Swope was quoted as saying, “We didn’t participate in the recession. Sometimes it’s good and other times it’s better.” Turns out, this was a favorite saying of his that he repeated often, especially after the economic downturn of 2007. His astute business acumen, even during the rough patches, is what drove him to build the largest dealership group in Kentucky. His tendency was to “strike while the iron was hot,” said Patti. “When the opportunity was ripe, he believed in taking action right away. I think he grabbed some business opportunities when some people were still thinking it over,” she said, pointing to his acquisitions of both Toyota and Honda dealerships before they became household names in the United States. “That proved to be a very wise decision.” The apple didn’t fall far from the tree. “I think about things, I consider them carefully, but I don’t delay. I don’t have any trouble making decisions,” said Patti, who joined the family business shortly after college. “My father encouraged me, but he never made me get into this business. And I didn’t get any favoritism – I had to work like everybody else.” Sam Swope’s vision was always to remain family owned and see the company grow. Patti’s vision is the same, but she is taking a modern approach by having the dealerships operate more autonomously. “I intend to make the existing dealerships we have more profitable. So I am implementing some culture changes, some policy changes that I think will enable our dealerships to do that,” she said. “I believe that we have some very talented people running our dealerships. And I believe by giving them more authority and empowering them to run their dealerships the way they see fit will pay off. If they take ownership of what they’re doing, so to speak, then I think they’ll be more motivated to make it successful. I believe in empowering them.” A more authoritarian style had its place over the years, however Patti felt like it didn’t allow upper management to hold their general managers accountable. “I think by loosening up the reins and empowering them to run their stores the way they think they can be successful, then I can hold them more accountable,” she said. The new policy has been in place for less than a month, but already

PHOTOS BY JAY MCCAIN

Lessons learned from her late father, Sam Swope, have primed Patti Swope to take the auto group to new heights. BY CAROL WHITE

is getting enthusiastic reviews. “Our people are embracing this. They like that I believe in them and that I believe they’re capable of it.” Three areas of operation in which Swope dealerships have more flexibility are developing loyalty programs, purchasing inventory and hiring personnel. She explained that although the dealerships are all part of the same auto group, each one has its own manufacturer programs, culture and customers. Having them determine their own programs allows them to better connect with their customers. That same principle applies to purchasing inventory that appeals to their customers, and hiring the right salespeople who can better relate to an individual dealership’s clientele. The move to more autonomous operations will also serve to attract younger, brighter employment candidates, according to Patti. “I think the younger generations want that kind of ability to have some creativity and input into ideas that grow the business. I sense this culture will speak to some of those people that we’d like to have in our business.” Switching gears in the company culture and policies means that the corporate office’s role has been redefined to that of a support team – assisting the dealerships in attaining the highest level of profitability and professionalism. I have two very talented, experienced VPs of operations who are overseeing the dealerships. Each one has six or seven ‘teams’ or operations. And their job is to act as a coach, so those general managers have someone they can reach out to and get some advice or counsel from,” she explained.

When the opportunity was ripe, he believed in taking action right away. I think he grabbed some business opportunities when some people were still thinking it over. Part of the company’s strategic plan, which was launched about a year ago, was to combine its human resources and education and development departments to form the Sam Swope Academy (see related story) which serves as an avenue to build the company from within. With all the changes taking place within the auto group, there are some aspects that remain unchanged. For example, sales associates are able to cross sell other brands within the group, as long as there are no manufacturer restrictions. This is done in a couple of ways. A salesperson can simply turn a customer over to another associate at another dealership and receive a referral fee. But for those sales associates who see the value of keeping that customer relationship by working the deal from start to finish can do so. “We encourage it, and our sales managers are all trained to help facilitate that,” she said. “We feel like that benefits us; we are able to hire some of the best salespeople because they are able to sell every make and model we represent.” Sam Swope’s wish to remain family owned is one Patti plans to uphold, which means preparing the next generation of Swopes for leadership. “I still think there’s a place for the family owned business in this industry.” Her cousin Dick Swope, who retired from the business in December, remains on the board of directors, and his brothers Carl and Bob operate the group’s dealerships in Elizabethtown, Ky. Dick’s son Richard is currently the general sales manager of Sam Swope Cadillac in Louisville. Continuing and building on the legacy that Sam Swope left seems like a monumental task, but it is one for which Patti Swope has been well prepared.

BY THE NUMBERS Year Founded: 1951 Number of Dealerships: 21 Brands Represented: 20 2014 Volume New: 11,275 2014 Volume Used: 14,326 Number of Employees: 1,100 Sam Swope was fond of saying “We took a look at the recession, and we decided not to participate.” Patti is shown here with her father who died in December, and her cousin Dick, who retired as president and CEO at the end of 2014. (Photo courtesy of the Sam Swope Auto Group)

YOU’RE ONLY AS GOOD AS YOUR PEOPLE

t may not be an original Swope motto, but it’s certainly one that the Sam Swope Auto Group has embraced. In adopting the philosophy, the company established the Sam Swope Academy a little over a year ago, a freestanding facility dedicated to recruiting top-notch candidates and providing ongoing training to all employees. It has been a continuous challenge in the auto industry to recruit the best and the brightest. In fact, the late Sam Swope recognized the problem back in 1985 when he told Louisville Business First, “This business is ignored by sharp young people.” Patti Swope, president and CEO, believes that statement is still true 30 years later, which is why she has made recruiting a top priority for the academy. “I think (the retail automotive industry) still has a reputation of being… difficult,” she said of the stereotype that’s been hard to shake despite industry-wide efforts to change that perception. The Sam Swope Academy’s answer to that dilemma is training its employees to become role models for professionalism in the auto industry. “We have to present the automotive dealership experience as one of a relationship with the consumer with an emphasis on the value of having a professional advisor. “We really are an outlet for someone who’s seeking professional advice. Certainly people can go out and get pricing and shop for automobiles online, but I still think there’s a relevance to having a professional advisor – someone who can help them with the sales and service process. That’s where the dealerships come into play. So we just have to make sure that we provide that kind of value to the consumers that interact with us.” The auto group combined its human resources and education and development departments to form the Sam Swope Academy with an emphasis on recruiting. “We are making efforts to provide an opportunity,” said Patti. “We’re actually going out and recruiting and showing a young person a career path in our industry – what that would look like if you were to get on board; what your income potential is. What I believe is an advantage to our business is you don’t necessarily have to have a college degree to have a really good career and make a lot of money.” While the recruiting efforts aren’t necessarily targeted to women, Patti feels that women can be very successful in retail automotive once they understand that a working knowledge of an engine isn’t necessary. “I have to confess – I’m not a gear head,” she said. “I like cars; I think they’re interesting and it’s a fun business to be in, but I couldn’t tell you how an engine works. I know that sounds funny coming from someone who runs a bunch of dealerships but I really don’t have that kind of technical knowledge. I’ve never needed it. I think if you understand people and you understand retail and you understand service, then you can be very successful in this business.” Training and retaining top talent once hired further aids the company in its mission to grow. Managers are trained to coach their staffs effectively to obtain desired results. “The philosophy is that instead of writing someone up and blowing them out the door, why don’t we spend some time coaching them on how they can improve. And most people, provided the opportunity and some good coaching, will improve. We believe in our people and if we hired well, then we should be able coach them into better and greater results.” The academy also has a management development program aimed at growing the company from within. Employees, who don’t necessarily have to be in management, are invited to participate with the goal of better job performance or advancement into more challenging positions. “By being in this program, we will recognize you as someone we can look to when we have an opportunity to fill. We have at least 60 people who are currently in this program, and already seven have stepped up into a new level of responsibility. So it’s starting to work. It hasn’t been going very long – just a year – but we are looking to those individuals now to say ‘do they have what it takes to step into this role.’ And it’s working, so far. “This really is a people business,” she said. “In order to remain relevant to the consumer we have to be professionals and provide our customers with valued advice and a good experience. So we’re committed to training our people to provide that kind of experience.”

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MARKETING

Your PostNADA Vendor Checklist What to look for when choosing the best marketing vendors for your dealership. BY AMY FARLEY

f you’re like many dealers across the country, you recently returned from another successful NADA Convention & Expo energized and filled with ideas for the year ahead. Now is the time to ask yourself – do you have the vendors in place to meet and exceed your goals for 2015? There are three keys to choosing your vendors and maintaining relationships with them that will allow you to be more effective and more efficient with your marketing for the year ahead.

KEY #1: BETTER VENDORS There are a number of factors that you should look for when you’re choosing a vendor, all of which will help ensure that you select the most reliable companies that will give you the best return on your investment. ACCOUNTABILITY The best vendors are the ones who aren’t just successful in their efforts to boost your dealership’s bottom line. They’re also accountable to you, checking in with your dealership staff regularly to show you how the efforts they’re making on your behalf are working. TRANSPARENCY The vendors you choose should be transparent with you, keeping you informed about the way they spend your money and the results they get. They

e n cy r a p s s Tra n nd or e V r Fe w e

Ask for references when you’re evaluating a new vendor, and follow through on them. Think about it – when you interview someone at your dealership, you may ask for references, but how frequently do you actually call them? Oftentimes, you’ll find that when you do not, those are the people with whom you end up parting ways. If you had called their references, you may have been able to save yourself time, money and training. The same is true for vendors. You should always ask a vendor for references. Don’t just ask for the clients with whom they see the most success, either. Ask for the clients who don’t perform as well. Speaking with the vendor’s success stories, as well as the clients who might be struggling, will help you get a true idea of how that vendor can help your dealership thrive.

KEY #2: FEWER VENDORS How many vendors are too many? In your automotive career, you may have experienced the confusion that comes along with having too many cooks in the proverbial kitchen at one time or another. Sometimes when a dealership utilizes too many vendors, wires can get crossed and signals

A vendor who is focused on working specifically with dealers will be able to provide you with the most relevant experience and the most effective services. shouldn’t just tell you how much they spent – they should be able to show you in detail how they spent that amount, as well as to identify the channels in which your investment was the most effective. This can help you and your vendor work together to determine where to put more money and where you may want to re-evaluate your focus.

INDUSTRY KNOWLEDGE While some dealers find success with vendors who work outside the automotive industry, it’s often in your dealership’s best interest to work with industry-specific companies. Vendors who work in multiple verticals may be skilled at some of them, but they are unlikely to be an expert at them all. A vendor who is focused on working specifically with dealers will be able to provide you with the most relevant experience and the most effective services. There is one more factor that can’t be ignored when it comes to choosing a vendor – the people. Take a look at who is behind the services they provide. Are they experienced and knowledgeable, not just about what they do, but also about your dealership and your market? 22

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can become mixed. Even when all parties involved pride themselves on their communication skills, confusion is often unavoidable. There’s no definitive number of vendors that’s just right – it can depend on the specific vendors you work with and your dealership’s individual needs. That said, if you can consolidate the number of vendors you work with to as few as possible, then you may see a marked improvement across the board, including better creative alignment, improved overall ROI and consistency in your value propositions To narrow down the number of vendors you use, lay them all out at once. Where do they overlap? There may not be overlap in the actual services they provide, but is there overlap in the areas in which

you’re looking to reach consumers? For instance, if you have separate vendors for your PPC, SEO and social media, can you consolidate that by choosing a vendor in the digital space that offers all three? Not only will this lead to a more comprehensive approach to messaging, but it will also help you reach customers in a way that reflects consumer behavior. Auto shoppers may find your dealership through a paid search ad, then later search for you organically, and then later still look for you on social media or an online reputation site. Your messaging should be consistent across all these channels, and that’s much easier to accomplish when one provider handles all those services. Relying on trusted, quality vendors who can provide more than one service for your multichannel marketing approach can help you trim your vendor list, while also streamlining your marketing. When a vendor can successfully provide more than one of the services that make up your marketing program, communication will be simpler and much more efficient.

KEY #3: POST-NADA ANALYSIS At this year’s NADA, you likely met with many different vendors, all of whom claimed to have the latest, coolest, most valuable tools and services. But can they truly all be number one? It’s important that you take some time after you return from the convention to do your research, both online and through calling the references that you collect. Be sure to compare apples to apples when you compare vendors to one another so that you can make the best assessment of which vendor is right for you – not just who is the cheapest or flashiest. Even if you’re feeling pressured to select a vendor, remember that it’s a much better idea to invest the time it takes to make the right choice rather than the quickest choice. Your patience and diligence will pay off in the long run as you develop strong, quality relationships with the vendors you carefully choose. If you haven’t finalized your marketing plan for the year, there’s still time. Take a look at your successes from 2014 and evaluate what you can improve upon this year. The bottom line is that choosing fewer, better vendors can help lead your dealership to greater success in 2015.

AMY FARLEY Media and Communications Manager at Force Marketing Amy is a skilled writer and editor with a keen interest in digital trends and topics in the automotive industry. She utilizes her knowledge of what is new in retail automotive marketing to help Force, an automotive digital, direct mail and email marketing firm based in Atlanta, Ga., evolve the dealer-tocustomer shopping experience. Visit the website at Forcemktg.com.

SALES

Easy Ways To Sell More (Even If You’re Too Busy)

The river of gold is still flowing. Don’t wait until it dries up to get serious. BY JOE VERDE

talked to a dealer the other day about training and I got the same response we hear every day. Dealer: Joe, we don’t need training, we’re swamped; we just need inventory. My standard response: Wow, you’ve sold all of the vehicles – you don’t have any vehicles in inventory at all? Dealer’s standard response: No Joe, we have a couple hundred, we’re just short on the ones people are buying. My standard response: So they’ve bought all the hot products, and now you have to sell the rest? Dealer’s standard response: Silence. Most dealerships are swamped. You guys have been bustin’ buns and it’s been an awesome year. Even better news is everything points to these good times continuing into next year. Here’s the 24

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deal though: The busier you get and the more sales you make, the more casual and complacent people become. Everybody has a comfort zone. The dealer has one, the GM has one, and the GSM and every other manger has their own unit, gross and personal income happy zone – and it’s being met in this great market we’re in right now. Every salesperson has theirs, too. And let’s not kid each other – when the eight-car guy who was comfortable there hits 10, the urgency to spend that extra time to take that next “looker” on a demo, or to make that follow up call, or to work a little harder to avoid price on an incoming call just doesn’t happen. It’s not him, or her; it’s just human nature. In tough times people do whatever it takes to make a buck.

But in times like these, people aren’t bending over to pick up pennies, and most won’t even pick up a dollar bill lying in the street if it looks dirty. The problem is, in good times people choose easy pickings over hard work any day. We all understand why, but let’s not ignore some of the easy sales we could make and quit sending them to the competition down the street. So let’s look at some of the easiest ways to pick up a few extra sales and some extra gross profit. These are things you can just do to increase sales and profits without much extra effort.

MANAGE YOUR PEOPLE Nope, no grind on the tough stuff we should be doing. But at least make sure salespeople are doing the key parts of the job they were hired to do. If a tech only worked on four out of 10 vehicles, nobody would be OK with that, not the customers and not the dealer. Well, managers and dealers may blow off the four out of 10 only getting demos, but customers are not OK with no demo and a poor overall presentation. They’re trying to buy a car and it’s frustrating as a buyer to have to work so hard to get a dealership to sell them a $40,000 vehicle, so they can earn a profit. Just require salespeople to do these three things to qualify for bonuses or spiffs: first, 60 percent demos; second, get more write ups (more demos make this very easy to do); and third, contact 75 percent of unsold customers

SELL MORE FLOOR TRAFFIC Did you know that statistically, if you have a 20-percent closing ratio, you could double sales – and then double sales again, just from the floor traffic you have now? What? How can that be correct? No rocket science here, just math on stats we all know to be true: eight out of 10 people buy, and the average dealership only sells two of the eight (20 percent closing ratio). Double would be four, and doubled again would be eight. No, you won’t sell eight out of eight, but you can definitely increase sales, and you don’t need more floor traffic. Just get your salespeople doing these things: n Assume everyone is a buyer and follow the steps

of selling 100 percent of the time. Is it really a good idea to allow below-average salespeople to decide who can and who can’t buy? Doesn’t it make more sense to require salespeople to give every customer the benefit of the doubt and give at least 75 percent of them a great presentation and demo and try to close the sale? n Follow up with everyone who doesn’t buy. Why?

Because eight out of 10 were buyers upon arrival, and eight out of 10 who leave are still buyers and will either come back to buy from you or they’ll buy from a competitor. There are no other “either/ or” options. Follow up and you win – don’t and you lose.

TALK ABOUT SELLING IN A MEETING The most common misconception managers have when they come to our Train The Trainer workshop is that training is all about them standing up front and talking to their salespeople for half an hour. Training is like selling; it’s all about asking the right questions. Try this tomorrow. Just talk about demos. Go through the stats we’ve covered a jillion times so you’re familiar with them, and start asking questions:

Training is like selling; it’s all about asking the right questions.

n Forget what you log, how many demos do you

really give? If that 50 percent stat is right, how many more units would you sell if you gave six or eight out of 10 a demo? Why? Do your math, how much more money would you make?

GET MORE WRITE-UPS Ever wonder why when times are great, you don’t get too many stupid offers or too many incredibly hard-to-put-together deals? Sure, it’s because salespeople have worked the deal on the lot and are only writing up people they think can or will buy. Pay spiffs if you have to, but fix this. It’s an instant improvement in units and gross. CLOSE MORE WRITE-UPS Have you ever wondered why so many deals become a slow grind and end up lost? Of course, it’s because they didn’t have any kind of real commitment, and probably didn’t even demo the vehicle. They’re just throwing stuff on the wall and hoping you can put a bad deal together so they can earn a commission. They have you pegged and know exactly what button to push to get you to take a nothing deal for them doing almost nothing to earn it. Besides, it’s much easier working you than the customer. Fix this. RAISE THE GROSS A manager in class said, “We control the gross at our dealership.” At first I thought he was trying to be funny, but he was actually serious – he thought managers at the desk controlled the gross. I smiled

as I reminded him that he only controls what’s left of the gross in his dealership after his salespeople have worked the entire deal on the lot. The average first discount that salespeople offer (almost immediately) is $845 and by the time they bring in a write up they’ve already given away $2,062 to get that loosey goosey commitment they have. That’s what makes customers so crazy when you start the deal back at full price (like you should do) – it’s the first time anybody has told them they should actually pay more for it. Remember, 16 percent do pay full price and 30 percent pay what they’re asked to pay. Here’s a tip: ask everyone to pay full price before you give away the farm.

GET OUT OF YOUR OFFICE When you aren’t working a deal, what should you be doing to make sure you get a deal to work? Exactly – go stir the pot and keep salespeople busy doing follow-up, taking ups, talking to service customers or making prospecting calls. That just won’t happen with you sitting in your office watching them through the window. Throw away your chair and watch sales improve immediately. ELIMINATE THE BAD APPLES If you have 10 salespeople and one rotten apple who everyone knows is well protected, that person sets the mark on where the line is drawn in the sand on having to follow your directions. And you know that’s bad luck, don’t you? So the next time he does the wrong thing – it will be soon – hand him his final check. If you do this, the other nine will straighten up and do exactly what you say as long as they think you’ll fire them, too, for not doing their job. Sure, there’s more you can do, but this stuff is so easy it’s painless – and you’ll deliver more units, earn more money, and be the hero. So go have fun!

n I know sometimes we don’t think we’re talking

to a buyer, but has anybody ever guessed wrong and missed a sale? Talk about that awhile. n Why is a demo so important? Who’s made a sale

just because of the demo? When? Why? How much did you make? Keep asking demo questions.

JOE VERDE President of Joe Verde Sales & Management Training Inc. 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. Joe can be reached at info@joeverde.com.

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SALES

Is a Digital Storefront Right for Your Dealership? Creating a digital storefront could give you the competitive edge you need in today’s market. BY MARK RIKESS

utoNation recently announced the creation of its first digital storefront – which allows the website to transition from purely informational to transactional – offering customers the opportunity to do the majority of their auto sales transactions from the comfort of their home or office. There’s no reason why you can’t transform the automobile purchase in your dealership by creating your own digital storefront. While there are plenty of benefits to launching a digital storefront (see sidebar) many dealers are hesitant to jump in. Probably the biggest hurdle most dealers face is the reluctance of sales management to embrace a more transparent and efficient method of auto retailing. But for those who are willing to delve into establishing a digital storefront, there are two key factors that need to be addressed: Vehicle pricing. Approximately 80 percent of dealers don’t put a new vehicle price online, even though this is a primary reason prospects visit your website. The reason most dealers don’t put a competitive price online is their “fear” of customers using their price as a “shopping tool.” This somewhat convoluted logic is “I will cost myself leads in order to protect potential gross.” An old mentor of mine once said, “When you try to protect something you don’t already have you’re likely to wind up with nothing at all!” Virtually 26

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all of the third-party website providers such as TrueCar, Edmunds, etc., have said that most often their customers don’t select the lowest price. Their primary drivers are convenience in proximity to their home and what appears to be an excellent, transparent sales process. Salesperson Empowerment. This is real thorn that sticks in sales managers craw. They want to be in control of pricing/desking and are often loathe to empowering salespeople with the ability to provide price quotes for customers that aren’t at the dealership. But when you stop to think about it, today’s consumers are used to shopping online, and when they do, they expect to see prices. If they don’t see prices, they will shop elsewhere.

STEPS TO CREATING A DIGITAL STOREFRONT If creating a digital storefront makes sense for your store, what is the first step? Create a separate digital sales team. Hire people with the skill set to handle incoming phone calls and Internet leads. By doing so, you will significantly reduce transaction costs because you don’t need a BDC when you have a dedicated digital sales team. Secondly, you don’t need the same level of management supervision with this model. The salespeople are empowered to discuss all aspects of the transaction including payment and trade-in estimates.

Benefits of Creating a Digital Storefront SALESPERSON RETENTION

You should be recruiting a younger, welleducated sales force that has high levels of empowerment and training. The minimum performance standard should be 12 units. Twelve to 14 unit sales should create an annual compensation of between $40,000 to $50,000. If I’m a Gen Y’er and making this kind of money I’m the “richest kid on my block.”

5-STAR REVIEWS

Due to a transparent, time-efficient and customer-centered sales process you should receive a significant amount of five-star reviews. Five-star reviews generate more leads including expanding your “sales footprint.” Research tells us that many customers will drive 20 miles or more to get what they perceive to be a great sales experience.

SALES ASSOCIATE EFFICIENCY

The digital sales department works solely off of appointments. No more sitting around or standing out front of the dealership waiting for “something to happen.” Also, arguably the biggest complaint of most customers is the time it takes to buy a car. Due to the transparent nature of this sales process, a significant amount of information has been shared or gathered during the process. Most often a firm purchase price has been established. By the time a customer arrives at your store, you should have collected trade-in data, customer information, determined if the vehicle is affordable, have the vehicle ready for a test drive, etc. Sales cycle time plummets when the process is done correctly.

Virtually all of the third-party website providers such as TrueCar, Edmunds, etc., have said that most often their customers don’t select the lowest price.

Depending on the size of your store you’ll need around one team leader for every six to eight digital sales associates. Most traditional stores today have around one manager (including BDC) for every three and a half to four sales associates. The next step is to create a very clear vehiclepricing strategy. For new cars, it is suggested to adopt either a pure one-price or limitednegotiations sales model. If you’re going to use a limited-negotiations model you need to determine how much you will negotiate from the quoted price. I’d recommend no more than $200. You’ll need a third-party reference to share with the prospect. A word track is, “We get our prices the same way you do. Using third- party websites like Edmunds or Kelly Blue Book.” Also, there needs to be a financial penalty if sales associates or management negotiates the $200 of “wiggle room.” You’re going to post competitive prices and you need to train your people to overcome a $200 objection – which translates to about $4 a month – rather than cave on the pricing. Some other factors to consider before launching a digital store are: n Sales and management compensation plans n Recruiting sales associates with the right skill sets n Developing a well-documented and regimented sales training program n Developing a scorecard that measures metrics for each associate

It is time that dealerships embrace a 21st century customer-focused experience. To create a digital storefront means embracing change and dedicating resources to establish a new sales department. Dealers who develop a digital storefront will have all kinds of competitive advantages accruing to them and will no longer be competing primarily on price alone.

SALES

Selling in the Zone It’s much more than just focus. BY CHRIS SARACENO

ecently, I came across some old notes I took at a Half-A-Car training meeting about 12 years ago. The notes were centered on being focused and prepared to sell, a state of mind that some call being “in the zone.” There are some concepts that are timeless, and, even after more than a decade later, these stand the test of time. Being in the zone is about more than just focus and experience, it is actually a different state of mind. A study in 2008 by scientists from Perdue University and the University of Virginia surveyed athletes who were said to be “in the zone.” Those athletes who were continually successful saw the world differently. The researchers asked golfers to estimate the size of the holes they were hitting into by pointing to various sized holes on a poster after their shot. Golfers who were playing successfully consistently guessed that the holes were larger than the golfers who were losing.

SO WHAT DOES THIS INFORMATION MEAN FOR THE AUTOMOTIVE INDUSTRY? It means that we need to do more than just prepare, more than have experience, and focus on more than only the sale. We need to see the world from a more positive place. We need to strive above what we see as clearly possible, to envision the world beyond the tiny task of selling. And we need to help our customers to do the same. All of that comes by using what I like to call TLC: Thinking Like the Customer. We all know there are a few basic questions customers ask themselves before they walk in to see you: What is it? How does it work? What’s in it for me? How much is it? To get in the zone we need to see these questions as an opportunity to build value in the product, the dealership and in ourselves. WHAT IS IT? The obvious answer is: a vehicle. But what else is it? For your customer it could be a chance to take their family camping or it could be the truck they need to move their construction business to the next level. HOW DOES IT WORK? Showing a vehicle isn’t just about rambling off a list of features. Customers can look at a brochure to see that list for themselves. You need to help them to see the potential that list has in their world. Imagine getting the kids ready for school, missing the bus and having to take a cold car quickly out of the driveway. How much better is that experience when you can start your car from inside the house while they are getting coats and boots on? It isn’t just an auto-start button, it’s a winter weather kid-warming button. WHAT’S IN IT FOR ME? It isn’t all about the money. While everyone wants a good deal, it isn’t necessarily price alone that will give them the sense of achievement. It could be the thrill of driving a sporty car, the status symbol that helps them define themselves in their inner circle or it could simply be a way to get safely to their job.

MARK RIKESS President of The Rikess Group Mark is a highly regarded expert on progressive retail practices, providing management-consultant services to dealers, suppliers and manufacturers. As a second-generation automotive dealer, he began with an early focus on performance improvement and implementation of results management processes in the dealership-operating environment. Mark founded TRG in 1989, and has consulted more than 150 dealerships. You can reach him at MarkRikess@gmailcom.

HOW MUCH IS IT? Finally, your customer takes all this information and processes it to determine if it is worth the monetary price. If you have built the bigger picture around your car, shown them how this vehicle will expand their world, then you’ve already sold the value of the car – you just need to remind them of that as you go along the negotiation process. You aren’t selling a car – you are selling a bigger world, a more positive experience and possibilities for their future. Help them reach the zone with you and you’ll all leave with more than your expectations.

CHRIS SARACENO Vice President and Partner at Kelly Automotive Group Chris has been in the automotive industry since 1984 and has worked with the Kelly organization since 1989. In his role, Chris works with all Kelly team members to establish clear sales and profitability objectives for all of the group’s dealerships. He is a member of AutoTrader’s Dealer Advisory Board, DealerRater’s Dealer Advisory Board and is co-founder and partner of dealerElite.net, AutoCon, Automotive Media Partners and ADM. Visit his website at ChrisSaraceno.com.

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VENDOR PROFILE

Dealers can take advantage of Protective’s consumer-facing website to educate their customers about the value of having a vehicle protection plan.

New Technology Drives F&I Profits Helping dealers better determine how they continue to grow and strengthen their businesses in the future will be more important than ever as changing demographics drive shifts in the automotive industry and the F&I office. BY CAROL WHITE

ith the rapid pace of technological advances being made in automobiles today, F&I departments are faced with keeping up with the everchanging needs of the marketplace. Protective Asset Protection is addressing those needs with the introduction of a new product designed to grow with the changing needs of dealers and their customers. “With many F&I products it is essential to stay abreast of changing needs resulting from advancing technology,” said Scott Karchunas, president of the company. Protective Asset Protection has been an important player in the F&I solutions business since 1962 and currently serves thousands of dealerships across the United States. Its sales, 28

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product management and marketing teams work hard to keep up with future trends by conducting research and leveraging long-standing industry knowledge, according to Karchunas. “In addition, we are constantly communicating with our agents, dealers and other industry professionals to make sure we are prepared for emerging trends.” Protective, a wholly owned subsidiary of Protective Life Corp., unveiled its newest offering – the Protective Vehicle Protection Plan – to existing dealerships beginning late last year. It is a newly designed VSC that aligns with today’s advanced vehicle and consumers’ needs, according to Karchunas, who’s been with Protective since 1988. “Above all, this is a service contract platform that will grow with the changing needs of dealers and their customers.”

The new product is designed to meet the needs of the evolving new vehicle marketplace. “To ensure that this new product is positioned for today and tomorrow we have focused on developing a protection plan that focuses on key changes in the auto industry, particularly in the areas of technology and safety. We are continuously evaluating the landscape and we are confident this new service contract surpasses most franchise auto dealer’s needs,” he said. He went on to explain that auto is the third fastest growing technology segment, behind phones and tablets, making it imperative that F&I departments continue to be an active part of this evolution by offering products that provide up-to-date coverage for the new technology and safety found in today’s vehicles. “Technology is evolving quickly and traditional manufacturers are turning to technology companies to design and develop center-stack interfaces, as well as other technology for the vehicles. Manufacturers are shifting from designers and developers of these technologies to thoughtful integrators. This trend may speed up the evolution to more autonomous, safe and productive driving. Also, technology is continuing to change the way cars are

MANUFACTURERS HAVE NO CHOICE BUT TO GIVE CONSUMERS WHAT THEY WANT AND THOSE OF US PROVIDING F&I SOLUTIONS ARE GOING TO HAVE TO SEIZE THIS AS AN OPPORTUNITY IN TERMS OF THE PRODUCTS AND SERVICES WE OFFER, AS WELL AS HOW THE PRODUCTS ARE OFFERED.

retailed – beginning with the lead generation process and continuing with a search for a more consumerfriendly and efficient sales process. “The complexity of the technology used in vehicles is only going to grow. Consumers have now come to expect the latest technology in their vehicles, and with the sheer number of millennials in the market, the focus on automotive technology is growing at a rapid pace. Manufacturers have no choice but to give consumers what they want and those of us providing F&I solutions are going to have to seize this as an opportunity in terms of the products and services we offer, as well as how the products are offered.” While millennials are the largest demographic segment since boomers – they represent 40 percent of the U.S. car-buying population – they have been slower to enter the market than their predecessors. But this doesn’t diminish their influence on auto and F&I sales. Karchunas believes that sales and marketing techniques aimed at millennials will need to provide information earlier in the purchase

decision process. “They will also expect products and processes that better meet their individual needs,” he said. “Today, car buyers average only around 1.6 dealership visits, that’s down from fiveplus less than a decade ago. These trends are just a few of the reasons why we have developed solutions such as consumer-facing websites that dealers can use to educate their consumers about the value of having a vehicle protection plan.” Aside from technological advances, dealers still need to pay close attention to other issues facing F&I, according to Karchunas. For example, the influence of F&I inside the dealership should continue to grow in several ways; among them is driving future customer retention through the sale of thoughtfully selected products. “One trend to keep a close watch on is product placement within F&I,” he said. “As the lead generation and sales process evolve, the ways we expose consumers to F&I products will evolve along with the ways any post-sale follow-up may occur.” Compliance remains another area on which

Scott Karchunas, President of Protective Asset Protection

dealers need to maintain focus. “As we’ve seen over the past couple of years, the CFPB & FTC continue to exhibit their influence on the auto industry, leading to a need to closely monitor compliance regulations. Dealers are going to have to work with their service contract providers to make sure they are well informed.” And of course, working with an F&I provider to maintain a customer-service focus and deliver products that provide value to their customers will play a major role in generating profits in F&I. Karchunas is confident that Protective Asset Protection can help dealers do just that. “By listening to and implementing feedback, we have simplified many aspects of our business. Everything from our internal processes to our product portfolio has been streamlined to make it easier for dealers and their customers to do business with us. “Our focus is to provide dealers with the products and services they need to realize the full potential of their customer relationships. We are guided by our core values of doing the right thing, serving people, building trust and simplifying everything to deliver value to our dealers. “Trust is built with our dealers through longterm relationships and our offering of innovative solutions that maximize their F&I revenue and customer satisfaction. Our employees are passionate about the business and the independent agents we work with are among the best in the business because they know how to help dealers grow their F&I business. “We help increase day-to-day productivity through training, professional claims processing, experienced underwriting and technology. We have been at this for over 50 years, paying out more than $1.9 billion in claims. It’s important to us that when a dealer signs on to one of our programs they can rest assured that they have a reliable provider they can count on so they can focus on running their business.”

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THE MYTHS OF WRITING SERVICE FIXED OPS

Don’t let myths about writing service keep your fixed operations from achieving great success. JEFF COWAN

ou may remember from my article last month, myths can be very dangerous things. They can and will impede your ability to grow, expand and succeed. I discussed some of the biggest myths surrounding the writing of service and will list a few more that have come up and continue to come up in the many meetings at which I am asked to speak throughout the year.

MYTH:

Service writers who work in economically challenged areas cannot sell as much as service writers who work in affluent areas.

FACT:

MYTH:

Service writers do not need the same amount of training as the car sales staff.

FACT:

A service advisor who works with just 15 customers a day will generate more gross profit for a dealership in a month than a salesperson does who delivers 30 vehicles in that same month. In addition, due to the volume of customers they will talk to in a month, they will have more impact on your survey scores and customer retention than any other employee in the dealership, including the dealer. So why would they not need the same amount of training or more?

MYTH:

Women service writers who are mothers are risky due to parental responsibilities.

FACT:

Tell that to Abigail Adams, wife to President John Adams. While John was overseas for many years, she stayed behind and ran the farm, ran John’s businesses and raised six kids, one of which grew up to be our nation’s sixth president. One of my daughters is at the child bearing age. She and 10 of her close friends have all had children in the past 24 months. While one of them quit her career and became a stay/work at home mom, the other nine not only continued their careers, but eight of them actually increased their hours or took on more responsibility. Why? Because they quickly realized that if their kids were to have a life equal to or greater than their own, they had to work harder and smarter. If all things are equal and I have the opportunity to hire a male service writer versus a female service writer with kids, especially young ones, I will take the female with kids every time. Think grizzly bear with cubs.

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Many times, they can sell more for one simple reason; the more financially challenged a person is, the more important their vehicle becomes to them. Financially challenged customers know that if their vehicle does not run and they cannot get to work, then their financial situation will only get worse. I have worked in countless service drives with countless service advisors where their customers were financially challenged and the sales made were either equal to or greater than those in service departments where the reverse was true. The difference is that the financially challenged customer requires a service advisor who has a slightly different skill set and outstanding follow-up and over the telephone selling skills.

MYTH:

Women service writers have a tougher time in service because men prefer to talk with men.

Service writers can handle setting their own check-in times, checking in your customers’ vehicles, following up on those customers throughout the day, closing those customers over the telephone, closing out their own repair orders, contact customers who have been waiting for parts, cashier their own customers, actively deliver vehicles back to each customer as the vehicle repairs are completed, send a thank you note to each customer, contact customers who missed their check in times, contact customers who previously declined repairs, contact customers they have not seen in over six months, while at the same time getting and maintaining high survey scores and customer retention.

FACT:

This is not a gender-specific problem. A service advisor who is strong at taking control of the customer and exudes confidence, can and will be able to handle your customers. While this myth used to have some validity 20 years ago, it has none today. If I were to list the top 10 service advisors that I have worked with over the past 29 years, seven of the top 10 would be women.

FACT:

MYTH:

It does not take as much skill to be a quick-service writer as it does to be a full-shop service writer.

FACT:

Arguably, it takes more. Think about it. A quick-service writer is many times the first person a new customer will work with in service after purchasing a new vehicle. Their ability to handle your customer and convince them that your shop is the only place to go for service, has to be near perfect, if not perfect, to get the job done. Although the path to full-shop writer begins many times in express, the express writer should be trained to expertly handle any scenario that a full-shop writer would. Again, they are likely to be the first point of face-to-face contact in the dealership after purchasing a new vehicle. Express should be trained to impress – every time, on every level.

Only if they write 10 to 15 repair orders a day. Just like on the vehicle sales side, you want to free your service writers (salespeople) up as much as you can, to talk to your customers. Salespeople make you money when they are talking to your customers. The more time they have to talk to your customers, the more money they will make you. From the beginning of car sells through the early 1960s, vehicle salespeople answered the dealership’s incoming sales calls, did their own financing and helped people when they came in for service. When dealers realized that those activities kept their sales staff in the building and not out on the lot where the buyers were, it ushered in the era of the telephone receptionist, the F&I department and service staff – significantly increasing the number of vehicles sold. The more you can do to support your advisors by freeing them up to talk to your customers, the higher your retention, survey scores and sales will be.

MYTH:

It is impossible to train veteran service writers to adapt to changes in their customers’ demands and in new technology.

Service writers will not sell or are not good at selling additional products like special wheels, extended warranties, details, etc.

FACT:

Not true. To sell anything on a service drive requires three things: a great product, great training in how to present and sell it, and a great pay plan.

FACT:

Not if you have established a culture of constant change in your department. The service writer or employee who cannot adapt to change and evolution in retail sales will become a dinosaur within five years. When you consider how rapidly your customers and their buying habits have changed in just the past few years, and how rapidly technology changes, any employee who cannot keep up is costing you money. In the future there will be two types of salespeople; those who sell technology and those who use it. The rest will become obsolete..”

If you are consistently not hitting your sales, retention and survey goals, it is a sign of great weakness not to try something new. Trying something new can be as simple as taking a look at what you or your staff say can’t be done, and testing to see if the reason is based on fact or myth. You should make this a common practice and part of your monthly routine to dispel myths that may exist in your work place. I get blamed from time to time for being too willing to test and eliminate these myths and reasons that hold my business back. I am told I need more patience. The fact is, I do have patience for the time it sometimes takes for myths to be tested. What I do not have patience for is the lost customers and revenues that myths produce. JEFF COWAN President of Jeff Cowan’s Pro Talk Inc. 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 and sign up for free, weekly training.

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MODERN DAY SOLUTIONS TO AGE-OLD PROGRESS BARRIERS 21st Century thinking and embracing a new era of transparency in the Finance and Insurance department will bring about a positive change in the auto industry. BY REBECCA CHERNEK

et peeves. We’ve all got ‘em. They course through our veins and pick at our last nerve. I’ve got no shortage of my own – but instead of complaining about everything that I see going wrong in the auto sales industry, I figure it’s high time to start offering up common sense solutions to some of the industry’s longest-standing progress barriers. Here are my top 10 solutions to negotiating some of the auto industry’s most pervasive stumbling blocks.

THE INTERVIEW

LENGTHY DELIVERY TIME

Prior to coming into the F&I office, the interview serves to ensure every last detail of an auto sales transaction is accurate. It raises product awareness and breaks down barriers. Every single time a deal goes into the F&I office unchecked, the chances are high it’s riddled with errors. Taking the time to review all documentation for accuracy, prior to sending the customer to F&I, makes all the sense in the world – and yet a puzzlingly high number of sales pros don’t do this. My question: Why? My suggestion: Don’t drop the ball on this all-important task. Earning a customer’s trust is tough enough without having to try to get it back after you’ve lost it. Be sure to conduct a thorough interview with all buying customers. It can save everyone a load of time.

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Once a customer touches down inside the F&I office, the wheels of delivery should already be turning. Dealerships should be working diligently to reduce the time it takes to deliver vehicles. How is this done, you ask? Great question! The answer is: by validating all information from the aforementioned interview to ensure accuracy. Working overtime to clean up paperwork errors can cost you. Instead, be sure to first get a signed deal checklist from the sales manager. This keeps all those proverbial little duckies in a row and makes sure things go smoothly where they all too often go awry.

3. NOT GETTING A BUYERS AGREEMENT It stands to reason that all deals should have a buyer’s agreement prior to entering F&I. But instead, these are often substituted with wacky, off-the-wall worksheets that can be near impossible to decipher. Be sure to get the buying numbers properly signed off by the customer or desk manager before forwarding deals into F&I. Just that one step can make a world of difference.

4. SPOT DELIVERIES GONE BAD Okay, this one mystifies me just a tad. I’m not quite sure if this happens because otherwise well-intentioned folks don’t know any better, or because they simply don’t want to. If you’re re-contracting on different terms, a dealer is required to send out an adverse letter reaction. If you’re playing outside the rules, you may want to consider an arbitration agreement – it might come in handy.

10.

NEGLECTING COMPLIANCE

F&I MANAGERS AND DESK MANAGERS QUOTING PAYMENTS… AND MORE

PROMOTING SALES MANAGERS TO THE DESK WITHOUT PRIOR F&I EXPERIENCE

Doing things by the book may be a total drag, but it’s got to be done. Confirming payoffs before contracting the customer takes more time, but it’s worth it in the long run if the result is ensured profits and customers not coming back the following day.

6. SKIPPING THE OFAC FORM I’ll be honest. I think the OFAC form is silly, too. But the government doesn’t. They want every customer – cash customers and lease customers alike – to be verified to ensure they’re not on the OFAC list. The good news about this is that it’s easy to do and it doesn’t even have to take place in the F&I office. It can be done in advance, saving everyone a bunch of time and needless stress.

7. NOT PRESENTING MENUS

I don’t think I’m alone in my belief that F&I managers and desk managers shouldn’t be in a position to quote payments, offer financial arrangements, or handle a customer’s personal information without first undergoing proper training. When you’re dealing with people’s sensitive financial information, it’s imperative that you be properly trained for this. This can head off some serious heartache down the line and your customers will appreciate you all the more for your diligence.

9. BEMOANING CFPB I know you don’t like talking about the CFPB. Neither do I. But they’re here to stay, and they will continue to train their watchful eyes on everything the auto industry does – looking out for deceptive and discriminatory lending practices, as well as product gouging. Don’t think you can pick and choose which customers you offer a product at whatever mark-up you decide, simply because you think Big Brother’s not watching. He is.

We should all know by now that a menu allows you to present 100 percent of your products, 100 percent of the time, to 100 percent of your customers. It’s easy, it’s no hassle, and it’s fast. It’s also been proven that customers will buy if they aren’t pressured to do so. The other reason we utilize menus is to ensure a customer understands all of the buying numbers prior to presenting them with products. This includes the base payment for the vehicle. Dealers spend tons of money on menu software programs. Why not put them to good use?

You wouldn’t hire just anyone to handle your accounting. And you wouldn’t dream of letting someone poke around under your hood without making sure they’ve got the proper certification. The same should go for Sales and F&I. Anyone who’s promoted into these important positions should be given thorough training that will enable them to quote structured deals to the cent, based on the customer’s credit criteria and bank guidelines. Taking proactive steps in this area will avoid nasty scenarios like sending deals into F&I with an underwater payment, or terms unavailable for the F&I manager to figure out and close.

Change is possible – even in the auto sales industry. To quote John Lennon: “You may say I’m a dreamer, but I’m not the only one.” Today, a growing number of auto sales professionals are parting ways with old methodologies and embracing a new era of transparent procedures and by-the-book plays that are bringing about giant leaps in the way that we do business. To thrive in the 21st century, auto dealerships have got to take on a uniquely 21st century attitude. Remember, nothing ever changes when you’re standing still. But when you take bold, positive steps, the future is yours for the taking.

REBECCA CHERNEK Founder of Chernek Consulting LLC. Rebecca has nearly three decades of experience in retail automobile, which began at her family’s dealership in Maryland. She has worked in many areas of dealerships including sales, F&I and general management. As a consultant, trainer and nationally recognized expert in F&I training and sales procedures, Rebecca has worked with hundreds of automotive car dealers, RV and marine dealerships throughout the United States and Canada offering customized, in-dealership training and workshops. Visit her website at ccilearningcenter.com.

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ON THE ROAD TO NADA The 2nd Annual Road to NADA bus tour, sponsored by Cars.com, left San Diego, Calif., heading for the big show in San Francisco. The crew stopped along the way shooting on location at Kia of El Cajon, Nissan of Valencia and Toyota Sunnyvale.

The CBT crew along with Cars.com ambassador Katy Wolda shoot a preview for where they are headed next on the Road to NADA

Bridget and Russell with Chris George, GM of Team Kia of El Cajone

CBT Anchors Danielle Banks, Bridget Everett and Russell Brown

CBT Anchors with Dan Sterkel of Nissan of Valencia

The tour rolled out of San Diego, stopping at dealerships along the way

Mike Shum, GM and Partner at Toyota Sunnyvale discusses how his dealership became the No. 2 volume dealer in California

Cars.com partnered with CBT on the Road to NADA bus tour

Cars.com representatives Patrick Jeter and Kelly Chapman on location with the CBT production crew at Kia of El Cajon

CBT anchors in front of their larger-than-life images on the side of the tour bus

The CBT News team packs up after another interview on the Road to NADA

Russell Brown, Mike Shum of Toyota Sunnyvale, Bridget Everett and Katy Wolda of Cars.com

Second stop on the Road to NADA was at Nissan of Valencia with an interview with Executive Manager Dan Sterkel

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Danielle Banks speaks with Steve Johnson, service manager for Nissan of Valencia

Danielle, Russell and Bridget with GM of Kia of El Cajon Chris George; and Cars.com reps Kelly Chapman, Patrick Jeter and Katy Wolda

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Learn how to certify your Other Makes & Models at: motortrendcertified.com/crown or call 888.965.2924

CBT@NADA IN SAN FRANCISCO

David Lewis of David Lewis & Associates

Andy Crews, CEO of AutoFair Automotive Group, center, was named Time magazine’s 2015 Dealer of the Year

Tom Stuker of Stuker Training

Nick Cybela, Sr. Director of Digital Strategy for Force Marketing

Jared Rowe, President of AutoTrader.com Tim Jackson, President of the Colorado Automobile Dealers Association

Matthew Racho, Sr. Director of the Power Information Network from J.D. Power

Karl Brauer, Sr. Director of Insights and Sr. Editor of Kelley Blue Book Forrest McConnell, 2014 Chairman of NADA

John Howard, Marketing Leader – Automotive for Synchrony Financial

David Putz, Sr. VP and Head of Direct Markets for Zurich

Lee Harkins, President and CEO of M5 Management Services Inc.

Bill Fox, center left, 2015 NADA Chairman; and Chuck Cyrill, Director of Media and Public Relations for NADA

Clockwise from top left, Tom Kukla, Chris Rollins, Kirk Manzo and Brenda Stang of the The John Maxwell Team

Jay Leno, Comedian and Car Enthusiast

Gary Tucker, CEO of DealerRater Ted Kraybill, President and Founder of ESI Trends

2015 NADA Chairman Bill Box with CBT Founder and CEO Jim Fitzpatrick

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Howard Hubler of Hubler Automotive Group with Jeff Cowan, host of CBT’s Service Drive

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AutoMotionTV Dealer App President Ben Anderson

Jenn Reid, Sr. Director of Product Marketing, Automotive Services at Equifax

The CBT News anchors and production team were on hand at the 2015 NADA Convention and Expo covering the events and interviewing some of the industries top executives. The team conducted more than 65 interviews with many of the top names in the business, including 2015 NADA Chairman Bill Fox; Jared Rowe, president of AutoTrader; Tom Stuker; and David Lewis to name a few. For complete coverage of the events, go to CBTNews.com.

Joe Verde, center, with Jim Fitzpatrick and Bridget Everett

John Fitzpatrick, President and CEO of Force Marketing; and Larry Dorfman, CEO of EasyCare

Mike Esposito, President and CEO of Auto/Mate Dealership Systems

Alan Ram, Founder of Proactive Training Solutions

Cory Mosley of Mosley Automotive

Michelle Krebs, Sr. Analyst of AutoTrader.com Adam Galper, CTO of Xtime

CBT News anchors at the Best Training Day Ever event

Jeb Bush, (R) Former Florida Governor

The CBT News team rolled into San Francisco in a custom-wrapped tour bus

Dawn McCauley, Senior Internet Marketing Consultant for ReachLocal

Bill Wittenmyer, Partner of ELEAD1ONE

The CBT Automotive Network set at the convention center

The ribbon-cutting ceremony kicked off the 2015 NADA Convention and Expo

Steve Cottrell, Founder and CEO of DealerVault Bill Fox, 2015 Chairman of NADA

Dean Evans, CEO of LotLinx

Sean Gardner, Instructor/Trainer at The Joe Verde Group

Brian Pasch, CEO of PCG Consulting and Ian Cruickshank, VP of sales for Speed Shift Media

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ASK THE ?

PROS

t CBT News, we are fortunate to partner with the best trainers in the industry. Whether it’s information on sales,

F&I, marketing, management or fixed ops, our contributors are the go-to professionals for reliable, relevant advice for dealership personnel. You have access to the foremost authorities in the retail automotive industry. Need a new closing technique? 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.

I HAVE A SALESPERSON WHO IS COMFORTABLE SELLING 10 VEHICLES A MONTH EVEN THOUGH I KNOW SHE CAN DO BETTER. CAN YOU GIVE ME SOME TIPS ON HOW TO MOTIVATE HER TO WANT TO SELL MORE? –Marcus V., Grand Rapids, Mich.

David Lewis: I don’t think motivation is the answer to this situation. Each person is motivated by different factors and unfortunately once those factors have been reached, a person’s drive and desire to reach a higher goal are reduced. My solution would be for management to take a very active role in her deals. I would be sure to speak with every one of her customers and take over the ultimate responsibility of closing them. My goal would be for her to focus on making the best presentation and demonstration; then once the numbers have been served to the customer, get fully involved. In essence, I as the manager will use my personal desire to sell more cars as the motivation to increase her monthly volume.

THE “GAS SAVINGS” CLOSE YOU’VE DEMONSTRATED HAS BEEN ONE OF MY MOST SUCCESSFUL CLOSES OVER THE PAST FEW YEARS. BUT WITH GAS PRICES FALLING, I’M FINDING IT HARDER TO USE AS SUCCESSFULLY AS I DID WHEN GAS WAS OVER 3 BUCKS. DO YOU HAVE A FAVORITE CLOSE FOR TIMES LIKE THESE? –Jackson S., Alpharetta, Ga.

Mark Tewart: Gas savings is just one part of the logical statement. Is the customer going from no warranty to warranty, possible repairs to no repairs, miles to no miles, cost of maintenance, payments on a new car vs. an old car and if the fact that their current vehicle will never be worth more than it is today. Today the customer deals with known vs. unknown. They know the price 38

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of the new car and they know the value of their present vehicle. They know that interest rates are at historical lows. They know that gas prices are lower than in several years. The unknown is how much more the vehicles will be in the future, how much their trade will depreciate, how much interest rates can go up and how much gas prices can rise in the future.

DOES A DEALERSHIP NEED TO HAVE AN F&I DEPARTMENT DEDICATED TO SUBPRIME LENDING? WHY OR WHY NOT? –Max C., Casper, Wyo.

Jenn Reid: It Depends. Many dealerships are just not big enough to justify the expense of a dedicated subprime F&I manager. What is most important is that you have someone who takes the time to understand the lender programs, works with the desk manager to structure a deal correctly, is detail oriented enough to make sure contracts are signed correctly and lender stipulations are fulfilled. If a larger dealership has the resources to dedicate a person strictly to subprime, then that makes sense for that particular store. However, there are many successful dealerships that do not have a subprimespecific manager. Regardless, the key is having someone who takes the time to understand each customer situation, submits accurate information to lenders and is focused on aligning the customer needs with the right vehicle and loan terms.

Equally as important are the customer experience and ensuring that all shoppers are treated with respect and fairly, regardless of whether or not they may have had some credit challenges along the way. If you remember to always put the customer at the center of your process and focus on setting them up for success, vehicle sales and gross profit will follow.

WHAT DO YOU FEEL ARE THE TOP THREE THINGS A SERVICE MANAGER SHOULD LOOK FOR WHEN HIRING A SERVICE ADVISOR AND WHY? –Ben F., Nashua, N.H.

Jeff Cowan: 1. Do they have the ability to close sales now? 2. If they do not appear to have that ability, are they receptive to learning? 3. How long do you believe it will take to get them up to speed so that they cannot only close deals but also get high survey scores and retention? I have seen too many times where service managers will hire someone and will allow too much time to pass before they start expecting any type of production. It should take no longer then 90 days for someone to be effective in the service advisor role. Although the technical side of the job may require a little more time, the part of the job that matters the most – expertly handling customers – should not. At the end of the day, writing service is a simple retail transaction, albeit a highly emotional transaction from the customer’s side.

The unknown is how much more the vehicles will be in the future, how much their trade will depreciate, how much interest rates can go up and how much gas prices can rise in the future.

ARE YOU A SALES, F&I, INTERNET, OR GENERAL MANAGER UNDER AGE 40? YOU MUST ATTEND THE ...

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Jerry Thibeau

Founder Phone Ninjas “Managing Your Dealerships Phone Process”

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CSO Vin Solutions “Execute a “Catch and Keep” Customer Strategy”

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