Car Biz Today – Sept 2014

CHECK OUT OUR DAILY NEWSCAST ON CBTNEWS.COM

CAR BIZ TODAY

The Official News Source of The Retail Automotive Industry September 2014

ISSUE 7

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

CREATING A SALES CULTURE IN YOUR SERVICE DEPARTMENT

A DEALER’S DEALER

Building a sales culture in your service department begins with recruiting. It’s easier to train your staff to sell if they are hired as salespeople. Service advisors aren’t the only people in the service drive who interact with customers. Therefore, all employees should be trained to sell. Jeff Cowan discusses ways to create a sales culture in the service drive.

JEFF COWAN ...see PAGE 30

DO YOU HAVE THE COURAGE TO SUCCEED? ROBERT VAIL DAVID LEWIS ...see PAGE 10

Owner, Vail Auto Group Chairman of the Greater New York Automobile Dealers Association

SELLING TO TOMORROW’S VEHICLE BUYERS

Third-generation car dealer, Robert Vail, has never been content with sitting around waiting for things to happen. For more than 20 years, he has been actively involved in several automotive associations advocating for fellow dealers.

DALE POLLAK

He was recently elected chairman of the Greater New York Automobile Dealers Association, a position in which he

Gregory Vail, Vice President

plans to continue to push for the rights and causes of the franchised new car dealer.

Vail believes there has to be a balance between maintaining strong relations with the OEMs, government regulations and the dealer’s ability to make a profit. He hopes to inspire others to stay informed and get active in their associations. ...see PAGE 20

PRSRT STD US POSTAGE PAID Permit No. 1459 Pewaukee, WI

...see PAGE 22

A COMPANY ON THE MOVE

CBT NEWS 5 Concourse Parkway Suite 100 Atlanta, GA 30328

Bryce Veon, President

A complete restructuring of Autosoft has placed the 26-year-old company in a position to take its products and services to the next level, according to Bryce Veon, president. The DMS provider currently serves nearly 2,000 dealerships with more than 30,000 users

With Protective Asset Protection, you protect your best asset your reputation.

Learn more at protectiveassetprotection.com or call 888.326.2545

across North America. With a new, but highlyexperienced leadership team, and a beefed up research and development group, Autosoft is bringing new technologically-advanced, yet affordable, products to market. ...see PAGE 12

Know what your competitors know.

PowerDealer is 100% pure retail transaction data, based on more than 117 million new- and used-vehicle sales, enabling a true comparison of your dealership performance vs. your market. It’s simple: When dealers use the data that tells a clear story, they drive better business results for their New, Used, and F&I departments.

Demo PowerDealer today. jdpower.com/powerdealer (800) 947-6988

PowerDealer: Bringing the market into focus.

Competitive Market View • F&I Performance • New/Used Vehicle FREE • REAL Transaction-Based Data

CAR BIZ TODAY M

A

G

A

Z

I

N

E

Letter from the editor Older generations have always been critical of the next, younger generation. I remember my parents and others of their generation lamenting on the future of our great country in the hands of the self-absorbed baby boomers.

But here we are now, wondering what’s to become of the next, demographic group of “entitled” millennials. I have to admit that every now and then, when I open my mouth and speak of my children’s generation, my mother comes out.

How did that happen? After all, we boomers are the ones who are supposed to be more understanding and open to different views. Right?

The fact is, if we are to successfully tap into the upcoming market of car shoppers – and employees – we need to let go of the negative stereotypes and look into what really makes them tick. On page 22, Dale Pollak looks at specific steps dealers need to take to ensure they are meeting the expectations of this new generation of smart, technology-savvy buyers. What is your dealership doing to attract the millennials – both as customers and employees? Let me know!

Have the best September ever!

Carol White Letters to the editor Small Market. Big Market Share (June 2014) I have received congrats from a great many folks and even a call from a dealer in a small market in North Dakota who would like to know more about how we do business. It fits nicely into my personal mission to support, encourage and inspire those around me.

TimHolm Owner Holm Automotive Abilene, Kan.

The Return of One-Price Selling (August 2014) We have been a one-price dealer for over 38 years, and have never strayed from it. It worked well for us, as at one time, we were the largest Jeep dealership on the planet for 14 years. I read an article in another magazine about five or six years ago where a dealer out of Florida claimed to have invented the one-price way of selling cars.

He stated two of his three stores priced car at one price, but the other store did not because “it did not fit the market.” A dealer can either one-price sell or not, you are either in or out, there is no middle ground. A dealer has to be dedicated enough (or stubborn enough in our case) to make it work for them.

Ryker J. Lowe President Jasper Jeep Dodge Chrysler Ram Jasper, Ga.

CBTNews.com

CAR BIZ TODAY September

Email

newsroom@cbtnews.com Phone

678.221.2955 President and Publisher Jim Fitzpatrick Vice President / COO Bridget Everett Managing Editor Carol White Associate Editor Russell Brown Assistant Editor Amy Ottman Creative Director Jay Roebuck Advertising Jane Howard jhoward@cbtnews.com d 678.221.2964 c 404.452.9551

Carol White | Managing Editor cwhite@cbtnews.com

4

CAR BIZ TODAY MAGAZINE

JJ Quest jjquest@cbtnews.com d 678.221.2962 c 678.296.4729 Customer Service info@cbtnews.com

Subscriptions To subscribe electronically, log on to cbtnews.com and click the subscribe link on the side bar. Alternately, forward your company name, your name, address, phone number and email address to info@cbtnews.com or CBT News, 5 Concourse Parkway, Atlanta, GA 30328.

Please send address changes to the above email or mailing address.

Permission to reprint or quote excerpts granted only upon written request. Advertising rates are provided upon request.

GO TO CBTNEWS.COM

SIGN UP FOR YOUR

FREE

subscription to

CAR BIZ TODAY Magazine

Bundled Benefits that Make Sense for Lease Customers.

One Package. One Price.

Paintless Dent Repair • Windshield Repair • Paint Scratch Repair • Fabric Repair • Cosmetic Wheel Repair & More

Introducing the new

Find Out More Information By Visiting

www.easycare.com/selectlease 888.327.9400

©2014 Automobile Protection Corporation - APCO. EasyCare is a registered trademark of APCO. All Rights Reserved.

CAR BIZ TODAY M

A

G

A

Z

I

N

E

Contributors Grant Cardone

Glenn Pasch

Jeff Cowan

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

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

Visit the website at pcgdigitalmarketing.com.

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

Kirk Manzo

David Lewis

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

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

Dave Anderson

Dale Pollak

Aaron Wirtz

Dave is president of Dave Anderson’s Learn To Lead, an international sales and leadership training and consulting company. Prior to beginning Learn To Lead, Dave enjoyed an extensive and successful career in the automotive retail industry. He has presented more than a thousand workshops and speeches over the past decade on sales and leadership development and has spoken in 15 countries.

Visit his website at Learntolead.com.

Dale is a highly sought-after speaker and author of several books on his Velocity Method of Management™. He is one of the leading authorities on automotive dealership management strategies, and offers dealerships a better way to appraise, manage and price their pre-owned vehicle inventory. He provides strategic development and integration for his company as well as other AutoTrader Group companies. Visit the website at vauto.com.

As the media and marketing manager for his dealership, Aaron tells the stories of the organization’s customers and team through words, pictures and video. He has appeared on CBT news, as well as FOX & Friends and the Neil Cavuto Show. Aaron is also the TV and radio personality for the Super Car Guys brand, holds a master’s degree in creative writing from Wichita State University, and is a proud Big Brother through Big Brothers Big Sisters. Follow Aaron on Twitter @aaronwirtz.

Anne Fleming

David Kain

Jenn Reid

Prior to her involvement in the retail automotive industry, Anne spent 20 years in brand development and strategic product development for several international consumer product companies.

Her leadership training led to the founding of Women-Drivers.com, which has been featured in the Wall Street Journal, ABC News, USA Today, Working Mother, Smart Money and other national media.

Visit her website at women-drivers. com and follow her on Twitter @womendrivers.

David has a unique background that includes automotive retail, OEM executive leadership and digital sales training and consulting.

His 20 years in retail included various positions in sales and service at Jack Kain Ford, where he remains a partner today. David was the COO and co-founder of FordDirect.com, the Internet lead provider to Ford and Lincoln dealers. In 2003 he developed Kain Automotive. For a free copy of his lead-handling process, email him at David@kainautomotive.com.

Entrepreneur and New York Times best-selling author

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

Joe Verde

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

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

Visit his website at joeverde.com.

President of Learn to Lead

President of Women-Drivers.com

CEO of PCG Digital Marketing

President of The Manzo Group

Founder of vAuto Inc.

President of Kain Automotive

SIGN UP FOR YOUR

FREE NEWSLETTER

Media and Marketing Manager for Subaru of Wichita

Sr. Director of Product Marketing, Automotive Services at Equifax

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

For the past four years, Walt has been responsible for developing excellence in technical training by partnering with OEMs to create effective solutions for their dealer training needs. Prior to UTI, Langley spent 27 years with Volvo in a variety of field and corporate roles including vice president of product. UTI offers undergraduate degree and diploma programs at 11 campuses across the U.S. and is the only school to have direct partnerships with more than 30 manufacturer programs, including Ford, Nissan and Toyota. It also offers manufacturer-specific training programs at dedicated training centers. He can be reached at 623-445-0912 or wlangley@uti.edu.

CAR BIZ TODAY September

GO TO CBTNEWS.COM

President of David Lewis & Associates

Vice President Industry Alliance – Automotive at Universal Technical Institute

CBTNews.com

THE OFFICIAL NEWS SOURCE OF THE RETAIL AUTOMOTIVE INDUSTRY

President of Jeff Cowan’s Pro Talk Inc.

Walt Langley

6

CAR BIZ TODAY MAGAZINE

RECEIVE DAILY NEWSCASTS, FEATURED STORIES, INTERVIEWS AND MORE...

How Does Action Today Impact Success Tomorrow?

B

By Kirk Manzo

enjamin Franklin rightly observed, “One today is worth two tomorrows; what I am to be, I am now becoming.”

Everyone wants to have a good day, but not many people know what a good day looks like – much less how to create one. Even fewer people understand that the way you live today impacts your tomorrow. Real, sustainable change rarely happens in an instant – rather it is cultivated through an ongoing process.

In his book, “Today Matters,” John Maxwell shares that your daily agenda is the secret to your success. If you are proactive, you focus on preparing. If you are reactive, you focus on repairing.

Team members often take cues from their observations of those around them, whether it’s the behavior of their managers or co-workers. How effective can your organization be when salespeople are being asked to prospect daily for sales opportunities, but sales managers rarely, if ever, prospect for new salespeople? How does this impact credibility? “Do as I say… not as I do” doesn’t work at home, so why even try it at work?

Managers set the proper example by executing a daily written plan. This allows your sales team to see expectations, rather than just hear them. The act of writing out your tasks has a powerful, positive effect on both the conscious and subconscious mind.

Recently, a consulting client reviewed the results of a D.O.S. Exercise (Dangers – Opportunities – Strengths) that was conducted with their senior managers well over a year ago. In this exercise clients project out three years into the future and reflect back to envision the outcomes they are seeking. It was profoundly revealing, as one recent client discovered, that by establishing their objectives prior to the defined timelines, they had in fact completed a large percentage of the goals. There is power in preparation.

When in preparing mode, it’s good to remember that good decisions without daily discipline results in a plan without a payoff. On the flip side, daily discipline minus good decisions equals regimentation without reward. However, good decisions plus daily discipline leads to a masterpiece of potential.

If you apply Pareto’s Principle, also known as the 80-20 Rule, when creating your plan, then 80 percent of your return will come from only 20 percent of your activities. Choose strategically how to allocate your time. For this author, the early morning hours are the key to

my productivity. The adage, “early to bed and early to rise,” – 9 p.m. and 5 a.m. – can make all the difference in my daily productivity. That, and remembering that yesterday ended last night.

Here is some food for thought: How would you rate your day so far? Has it been productive or unproductive? Why?

The change we seek in those around us (our team) begins with us. Set the tone for productivity in your store not with words, but with actions. Once your people “see” your consistency they will begin to comply with your requests for creating and implementing a daily plan. Effective actions today will positively impact the outcomes of tomorrow. CBT

Kirk Manzo President of The Manzo Group

How do you typically approach your day? What dictates how you spend your time?

What is one good habit you have? When did it start?

Why is it valuable?

How do your decisions today impact the direction of your future?

When has neglecting a decision caused you remorse or regret?

Managing our attitude is equally important to making a plan. How can we inspire the troops when we are less than enthusiastic about what the day will bring?

In his classic book, “The Greatest Salesman in the World,” Og Mandino described how a wheel exists in each of us that turns from light to darkness, from winter to summer. Let’s be candid – some days you feel like you can conquer the Og Mandino world, while other days you feel like the weight of the world is upon you. Establishing a game plan on how to get your head into the game, before the game starts must be part of your preparation routine each day.

Eliminate these words:

Try these instead:

I can’t

I can

If only

I will

I don’t think

I know

I don’t have the time I will make the time Maybe

Absolutely

I’m afraid

I’m confident

I don’t believe

I’m sure

Tony Robbins emphasizes the use of incantations to get your mind into the proper place or “state.” No, not positive affirmations such as, ”I think I can, I think I can, I THINK I CAN!” Instead, simply say out loud, “Everyday in every way, I’m feeling better, faster, and stronger.” Say it over and over again, almost as if to place yourself into a trance. Sounds corny, I know, but don’t knock it ‘til you’ve tried it. It really works.

“If you continually look for and embrace the positive and eliminate the negative, you’ll help yourself to begin thinking more positive every day.” – “Today Matters,” John Maxwell

Preparing…

Lets you focus on today Increases efficiency Boosts confidence Saves money Pays now for tomorrow Takes you to a higher level

Repairing…

Makes you focus on yesterday Consumes time Breeds discouragement Costs money Pays now for yesterday Becomes an obstacle for growth September CAR BIZ TODAY

CBTNews.com

7

By Dave Anderson

By Dave Anderson

A

fter decades of working in, and consulting with the marketplace, I’ve become convinced that the vast majority of people who miss their potential are not lazy. They are unfocused. Many put their hearts and energies into building a great career, business and life, yet never rise above mediocrity. Others become wildly successful, but still fall far short of what they could have accomplished had they focused their time, energy, talents and resources more intensely on a daily basis.

Following are four rules of focus that will take you past the exhausting and unfulfilling “mile wide and an inch deep” approach that dominates so many lives, and into a more unstoppable achiever in whatever you set your mind to.

8

CBTNews.com

CAR BIZ TODAY September

1. Focus fanatically on the ultimate few Consultants, authors and trainers have been saying this in their own way for decades: “First things first, last things not at all.”

– Peter Drucker “The main thing is to keep the main thing the main thing.”

– Stephen Covey “Don’t spend minor time on major things, or major time on the minor things.”

– Jim Rohn Focus is defined as “the ability to concentrate.” Naturally, before that can happen, you’ve got to choose to what it is exactly you are going to give disproportionate time, energy, resources and talents. By identifying and focusing fanatically on the ultimate few—a small handful of goals that mean the most—you create a focus filter, making it

far easier to know to what to say yes or no; in what to daily engage, or from what to withdraw as you move towards your goals.

The challenge is that from all the good things you’d like to accomplish (good things to do), to focus on the best things (best things to do). And while it’s counterintuitive for “Type A” leaders to say no to good ideas or opportunities, there is no greater destroyer of focus than always saying yes.

This sort of blurred focus shows up when well-intentioned people try to change too many things in their business or life at one time. If you make 10 changes at once, you divide your energy by 10 and have a 10-percent chance of success. The ensuring disappointment proves time and time again that setting too many goals at the same time guarantees you’ll achieve few, if any, with excellence.

Without identifying and focusing fanatically on the ultimate few you will tend to dabble your way through the day, reacting to the latest emergency and improvising around the newest crisis. You’ll be prone to mistake motion for progress and confuse activity with accomplishment.

2. Identify and act on daily lead measures While your “ultimate few” are the lag measures of what you’d most like to accomplish, your highest-leverage daily activities are the lead measures that take you there. In case you missed it, let me stress that I said “daily” activities. Reaching your most important goals isn’t a destination thing; it’s a daily thing. The simple truth is this: a day has no memory whether it was good or bad; you have to come back and prove yourself all over again by executing the handful of diligent daily disciplines that continue to move your progress forward. It doesn’t matter how great yesterday was, it ended last night.

To make each day a masterpiece you must continue to focus on the key lead measures; and every day means every day. In fact, your success in achieving what means most to you will have less to do with the brilliance of your plan, and more to do with the consistency of right daily actions.

To determine your key daily lead actions to execute, don’t make the mistake of listing everything you can do to achieve your goal and then pursuing them all. Instead, think in terms of leverage and ask, what are the fewest daily battles necessary to win this war? Then focus on getting them done, daily, regardless.

3. Finish your day before you start it and schedule your key lead measures Again, to defer to two of my mentors and their timeless wisdom:

“Never begin the day until it is finished on paper; finish your day before you start it.”

– Jim Rohn “Begin with the end in mind.”

– Stephen Covey Lead measures should be scheduled for tomorrow before you leave for home this evening. Then, when you come to work, you’ll have a blueprint waiting for you that will narrow your focus and quickly put you into a productive stride early in the day. As “stuff” arises that gets you off track as the hours progress, it’s easier to return to your focused plan if you actually have one to begin with, and aren’t just making the day up as you go along. Many people make the mistake of trying to squeeze their priorities into the day, rather than scheduling their priorities and working the day around them. Forget the old buzz phrase, “prioritize your schedule” and instead, “schedule your priorities” and your focus will compound.

4. Learn to say ‘no.’ Opportunity doesn’t equal obligation If you’ve ever turned your head for five minutes and had it become your day, you know the danger of not saying no to low-return conversations, tasks or trivial pursuits. However, without following the three prior disciplines you won’t have a framework from which to discern what is a good or bad decision, or use of time. Thus, when you concentrate daily on the ultimate few, and on diligently executing the pre-prescribed, scheduled, lead measures that will take you there, you’ll get off track far less often, and will more quickly recover when you do.

The four rules of focus are both sequential and non-negotiable – you can’t pick and choose which you like. They must progress in the order given and cheating on even one of them yields predictable and oftentimes immediate consequences. The rules of focus, much like laws of gravity are unforgiving; they don’t care how busy you are, or how you feel, or how unique you believe your situation is. Violate them and you’ll see it, feel it and suffer because of it. Follow them daily and you’ll go farther, faster, than you ever believed possible. CBT

Dave Anderson President of Learn to Lead

Do You Have the

COURAGE TO

SUCCEED?

I

By David Lewis

t is often said that nothing in life is certain except death and taxes. Whether that is true or not, those who want a guarantee of success in this life may find it somewhat of a challenge, regardless of how talented or creative they are.

Life can often leave us bewildered when we see those who have great success and those who fall short of their ultimate goal. That doesn’t mean that it is unfair or slanted for some. Often, it is simply unforeseen circumstances that produce an outcome that is different from what they had hoped. For those who find eventual success, their stories often tell of great courage and determination against the odds.

Walt Disney once said, “All our dreams can come true, if we have the courage to pursue them.” Walt Disney certainly knew about success and failure. His first film company, Laugh-O-Gram, actually went bankrupt in 1923 and years later he nearly went broke again trying to finish his first major film, “Snow White and the Seven Dwarfs.” Nevertheless, he stuck with it and eventually his perseverance produced one of the most successful entertainment companies of all time.

Henry Ford’s first effort, Detroit Automobile Co., went bankrupt in 1901, yet just two years later, Ford Motor Co., was founded and he changed the world forever becoming one of the richest men of the modern industrial age.

There is a myriad of stories about people who fought hard against tremendous odds until finally achieving great success. However, for everyone who made it, there were many who gave up and settled for a life below what they really desired or deserved.

Henry Ford

10

CBTNews.com

CAR BIZ TODAY September

Finding the courage to continue on when things don’t happen according to our schedule is sometimes the deciding factor between success and failure. There are countless stories of people who fought against great adversity and struggle, still holding to their dreams when others said they were foolish and wasting their time on something that would only fail.

Take Sir Winston Churchill as an example of endurance and courage. He failed twice to pass his entrance exam for the Royal Military College and spent 10 years – known as “the wilderness years” – estranged from his political party because of ideological disagreements with his peers. Nevertheless, he became someone many consider the greatest leader of the 20th century because of his courageous and bold stand against Nazi Germany during World War II. Churchill had this to say about success and failure: “Success is not final; failure is not fatal; it is the courage to continue that counts.”

Bethany Hamilton started surfing when she was just a child. At age 13, she survived an almost-deadly shark attack by a 14-foot tiger shark, which resulted in the loss of her entire left arm. Her tremendous story of courage and determination is chronicled in the 2011 award-winning movie “Soul Surfer.” One month after the vicious shark attack, Bethany was back on her surfboard, and two years later, she won first place in the explorer women’s division of the National Scholastic Surfing Association national championships. Talk about determination! She had dreams that carried her through what would have crushed the hopes of most people, but she turned her worst experience into a driving force for courage and faith and became a winner when everyone said it was impossible.

It doesn’t matter what your dreams are, there will always be someone or something that tries to stop you from achieving them. It has been said that whatever doesn’t kill you, makes you stronger. Bethany Hamilton‘s amazing story certainly takes away all of our excuses for failure. Opposition and struggle is like that. It takes courage to go forward against the resistance that you are facing and eventually overcome in order to win the day.

There are many more stories that show the power of courage and determination to overcome great obstacles. Albert Einstein didn’t learn to speak until he was 4 years old. His father nicknamed him “Dopey.” He failed his initial college entrance exam and eventually went to work as a patent clerk in the town where he lived. Still, he overcame these perceived obstacles and became the most notable genius of modern times.

Founder of Virgin Records and world-famous entrepreneur Sir Richard Branson has dyslexia. Branson was a mediocre student who got low marks in school and did poorly on the standardized tests. Instead of giving up, he used the power of his personality to motivate him onward into great success. Today, Branson is considered one of the most successful men in the world and is the fourth richest person in the U.K.

Sir Richard Branson

When you have a clear vision of what you want to accomplish and you work at it steadily and consistently, the odds are that you will eventually succeed.

Hanging in there requires a special kind of courage, but it often pays big dividends in the end.

Let’s face it: Most of us would love to find ourselves suddenly rich and famous. But is a fast track to success really the way to go? We often hear of people who win millions in the state lotteries, yet they soon squander it all and go broke in just a few years. Sudden riches not earned by being faithful and consistent day-in and day-out can slip through your fingers as fast as they appeared.

The process of steady plodding creates a wisdom and endurance that enables you to experience great success, without being overwhelmed by it. We don’t often think of this as courageous or exciting, but more often than not, those who reach the top through hard work and determination rarely take their wealth for granted.

What are you willing to do for the dreams you have in life?

Do you have the goal line fixed in your mind and have you made a contract with yourself to never give up? Are you ready for the obstacles that will stand in your way, and prepared for the bumps in the road ahead?

You may have to go over, under, around or through the mountains that stand between you and your goal, but what matters the most is that you get to the other side regardless of what it takes. Don’t look at the mountains as your enemies; instead, see them as challenges that make you stronger and wiser than you were when you first began.

Do you have the courage to be successful? Today is the first day of the rest of your journey to the top.

Find the determination to meet the challenges of today and overcome them. When tomorrow comes, you will be one day closer to seeing your dreams become reality. Maybe someday when another person is telling a story of overcoming great obstacles to find success, your name will be on the list of winners who made the grade. CBT

David Lewis President of David Lewis & Associates

Automotive Network Introducing Our

New Fall Lineup

A COMPANY ON THE MOVE

Bringing a Better DMS Solution to Dealers

By Carol White When Bryce Veon stepped back into the business that his father founded, he took on the mammoth task of overhauling the entire company from the top down – changes that, he said, were necessary in order to take its products and services to the next level. That restructuring is allowing Autosoft to serve its current and future dealer clients better, and is producing impressive numbers to boot. During the transition, Autosoft has experienced a 54-percent increase in staff, and is on track for a 62-percent increase in revenue over last year.

Since its inception 26 years ago, the company has grown market share from competitors like Reynolds and Reynolds, and ADP Dealer Services, according to Veon. “But we needed a major change in our distribution model and our sales model, and we really needed to reinvest in the software. So that is what we did. I came in and made a lot of changes in a one-year period.”

Veon has been involved with Autosoft most of his life.

The company was founded by his father, Harry Veon, as a start-up in the family’s basement. The elder Veon began by customizing software programs for a variety of businesses, but eventually turned his focus to the automotive industry. The younger Veon assisted his father by assembling computers in the basement and accompanying him on installations at dealerships. But a difference in his vision for the company and his father’s vision led the younger Veon down a different career path.

In 1994, while he was still in high school, Veon started a construction company and built a 3,000-squarefoot office building in West Middlesex, Pa., to house the software company. A few years later, his company constructed a second 15,000-square-foot building which is the current headquarters for Autosoft. Despite his absence from the day-to-day operations, Veon

12

CBTNews.com

CAR BIZ TODAY September

remained involved in the background.

Harry Veon retired from Autosoft and passed ownership to his son in 2011. Other business commitments, however, prevented him from stepping back into an active role until 2012. “Right now I’m 100-percent focused on Autosoft,” he said.

“It had been run like a mom-and pop-business for a number of years and it was struggling,” he said. “We had a distribution model where probably half of the business was distributed by individual sales reps. That was a good startup model 20 years ago – it was a low-investment in the sales force and an easy way to get the product out there and sold, trained, installed. But over time, we realized that it wasn’t best for the company.

We didn’t have a lot of control over our brand; we didn’t have a lot of control over the quality of our training and services. So the goal was to take that back over and control it all.”

Autosoft recently rolled out FLEX Connect, its application programming interface program, which allows its DMS to integrate with all the third-party software providers. “Right now we have 33 third parties that are in our FLEX Connect data services, and then there are an additional 15 that are in our certified data access,” said Veon. “Our goal is to be open, more so than the other DMS vendors, so that we truly integrate with all the third parties – to be agnostic and allow the dealers to choose what’s best for them.”

One thing that has not changed is Autosoft’s position as the more-bang-for-your-buck DMS provider. “It’s a very powerful system that does everything that the dealers need it to do. A lot of dealers have looked at the cost of our software in comparison to major competitors and thought that our software couldn’t possibly do what they need it to do. But that’s not true at all,” said Veon.

The first order of business was to recruit a highly-talented leadership team to help steer the company’s growth, according to Veon. It took about a year to round out the management team which, collectively, has more than 80 years of automotive experience. “We would never have been able to scale up to the next level without that level of experience and talent to guide everything through.”

“Cost and contracts have always been a factor for dealers, so we try to be the low-cost, high-value provider. That’s still our goal and that’s still who we are. We have a lot of loyal customers who don’t have contracts with us. So compared to the competitors who force them into three- to 10-year contracts, it forces us to earn their business every day. It forces us to make sure that we take care of our customers and provide the best support possible and keep them happy.”

In conjunction with bringing in a fresh leadership team, Veon initiated a rewrite of Autosoft’s complete DMS suite, beginning with the F&I module. “That required quite a ramp up in research and development,” he said. “We brought in a lot of software developers.” All components of the DMS suite, including accounting, service, parts and dealer principal, will be redesigned to a web-based platform.

The direction Veon is taking the company is exactly the vision he had for the company years before. “It’s what I proposed 10 years ago,” he said. Another component of that vision is the company’s culture. It’s not easy to steer an entire staff into a brand new way of thinking. After all, massive change can be difficult to stomach for some employees. But Veon and his management team seem to have successfully accomplished this task.

Autosoft was recently voted as one of the 2014 Best Places to Work in Western Pennsylvania by the “Pittsburgh Business Times.” Employees participated in a survey about their work experience, which led to the honor. “The key word that people around here use to describe us is Google-esque in spirit. We try to do a lot of fun things. We have what we call the A-Team which keeps the workplace energized by organizing a wide variety of events, like team building and social events.

We have activities and tournaments after work and programs during work to make it a fun place to work.

“Before I stepped in...employees didn’t own their jobs or feel like they were part of something, so we brought accountability in to the mix. We brought in measurement of performance and became more performance-based. We don’t necessarily care how many hours you put in, but if you are hitting the targets, results, deadlines and goals we put in place, that’s what we care about. And if you go above and beyond you get recognized and rewarded for that. There’s room for growth within, as well.”

The dynamic combination of an experienced management team, a young software development staff and a highly-motivated sales force is the perfect recipe for both short-term and long-term growth, according to Veon. “In five years our customer base will be double the size it is today. Obviously we want to be the best in the automotive industry, so we’re going to continue to offer new products and features.”

Future plans for the company include expanding to adjacent markets such as pre-owned car dealerships, tire dealers and repair centers, and extending its reach beyond the U.S. and Canadian markets. “Once we have our new platform across the entire DMS, it’ll be easier for us to move in that direction.” CBT

It’s a very powerful system that does everything that the dealers need it to do. A lot of dealers have looked at the cost of our software in comparison to major competitors and thought that our software couldn’t possibly do what they need it to do. But that’s not true at all.

September CAR BIZ TODAY

CBTNews.com

13

IMPROVED EMPLOYEE PERFORMANCE DEPENDS ON TEAM STRATEGY

By Glenn Pasch

H

ow does your dealership determine its strategy for success? I have heard and seen first-hand many cases where a new initiative or goal is relayed from upper management without any strategy or specific processes to follow – just a demand for improved employee performance. Sound familiar?

This failed process of communication leaves it up to each employee to guess what changes need to happen.

This leads to time and resources being wasted trying out strategies that upper management never intended employees to follow. Worse, is that when initiatives are not met, there is frustration from both sides with much energy wasted on finger pointing and accusations.

Instituting change in any company is not an easy thing.

It takes time and a commitment from all involved. It especially takes discipline from the top leaders to keep everyone engaged in the process.

How many of us have started new programs and stopped? How many of us have invested our time in a new process only to fall back into our old habits? The main culprit that causes employee performance failure is twofold: not having the correct buy in or participation from the entire team and then timely accountability to focus on the progress being made.

How to Strategically Improve Employee Performance There are four main things your strategy needs to have in place before you barrel into any performance change.

•

What is the goal of the change?

•

Why are you putting this change into place?

•

How do you plan to achieve this goal?

•

Is there accountability to your goal?

What?

Are you clear on the outcome you want to achieve? Can you visualize what your business will look like once the change occurs? Have you taken into account how this change will affect other employees or departments? The 14

CBTNews.com

CAR BIZ TODAY September

clearer you can see the outcome, the more specific you can be communicating and directing your vision to your team.

For example, if your goal is to increase the number of leads your marketing department is driving to your dealership, have you thought about how this will affect the staffing of the department who handles the leads?

Have you reviewed the reporting structure to see if it will monitor these changes correctly?

Why? This is a critical step in the process. If you don’t clearly understand and communicate to your team why it is necessary to change, then you are bound to be unsuccessful.

Employees will rally for a cause when they understand why they are doing something. It also helps them retain information because the “why” is strong. Without a strong understanding of why something is necessary, employees will follow orders for the time being to pacify the leadership, but soon they will slowly roll back to old habits.

How? This step is fast becoming one of my favorite exercises for change. I have done this in my company and seen drastic improvements in performance. Bring everyone in the company into a room and ask them to list all of the things that have to happen for this initiative to occur. You will be surprised at how many things the leadership may not have thought of or where there may be a roadblock with the initiative.

For example, if you wanted to increase the number of sales by 10 percent this quarter, what new tasks would have to happen across all departments, not just sales?

From marketing to onsite process to lead conversion to CRM compliance to customer follow up to service retention to data mining – the list could go on and on.

Once you have all of the things listed, have the team bucket the tasks into four or five larger groups, such as sales, marketing, process, staffing, inventory, reporting,

etc. Once you have these buckets, allow employees to sign up on the team that will prioritize and create the solutions for each of these objectives. Make sure each team consists of employees from different departments.

You want different viewpoints for each objective.

Keep all of these objectives and initiatives, with the team members names, posted in a very visible location – maybe your meeting room. Or you may want to create a document that everyone can keep at his or her desk.

Accountability?

The last step is to set a weekly schedule to meet with the entire staff to follow up on everyone’s progress.

One great benefit of having everyone present for the follow-up sessions is that the group helps to hold everyone accountable, not just upper management. No one wants to stand before the group and tell them they did not do their work. Once a step or task is complete, move on to the next step to move the initiative towards completion and set a new deadline for delivery.

In the event there is a legitimate reason why progress is not being made, the group can help solve the problem to keep the initiative on track.

This type of involvement keeps your entire team working together to achieve this new goal and breaks down departmental silos. Remember that although it may be clear to you and you feel it should be simple to achieve business goals, it takes small steps achieved consistently across departments to move the entire dealership towards a new performance height.

Consistently improving your employee’s performance takes time and total team effort. Plot your course, get everyone’s input on the solution and work together as a team to see long-lasting change for your company. CBT

Glenn Pasch CEO of PCG Digital Marketing

Does your DMS provider stand behind your satisfaction? We do.

Introducing the Autosoft Guarantee. DMS satisfaction or your money back.

• FLEX DMS is a complete system without the high price tag. Compare and see how much you can save each month.

• Experience superior support from knowledgeable industry professionals.

• Build your own solution with open, secure integration to the third-party software you choose.

• Communicate efficiently through certified integrations with OEMs. • Enjoy the flexibility of no long-term contracts.

Not everything in life is guaranteed, but your DMS can be. Switch to Autosoft’s FLEX DMS and if you’re not satisfied during the first 12 months, we’ll refund 100% of your monthly recurring software and support fees.

Visit www.autosoftyoudrive.com/guaranteed or call 844-888-8200 for program details and to schedule a FREE DEMO

6 STEPS TO ENSURE YOUR INTERNET MANAGER’S IMMEDIATE SUCCESS

T

By David Kain

his is an exciting time for Internet managers.

Internet is the most dynamic and fastest-growing segment of the automotive marketplace. Perhaps you have carefully mapped out your success path and know just what to do. Or, maybe not. No worries

– there are steps you can take to ensure immediate success.

Hopefully, you have walked into a successful operation where you have been asked to maintain and perhaps grow an already well-performing Internet department. Or perhaps you’ve been tasked to resurrect or revive a struggling department.

Regardless of the situation you have inherited, there are some important first steps you should take to ensure you have solid success now and in the future. Taking these six steps first will set the stage for immediate and long-lasting results.

1. Identify Expectations It is important to find out what your leadership team expects from your Internet operation. In some dealerships, your dealer or general manager may not have this well-defined. If that is the case, it is important for you to outline what your vision and goals are for your department and ask them to endorse them right away. In addition, be sure to ask them how they will measure the success of the department because knowing beforehand will ensure you know when you reach and exceed their goals.

It is best to outline objective goals that you feel you can reach with proper planning, budget and staffing, and to understand what actions are necessary to achieve the goals and how management will work with you to support your efforts. It is also important to establish timelines for your department so you have the understanding from your leadership team that although you may have immediate results, it takes time to season your team for long-term success.

16

CBTNews.com

CAR BIZ TODAY September

the frustrations and then when the contract ends, you have the capability to select the next generation CRM. Smart phones and tablets – Depending on your setup you can truly benefit from these two items. The tablet is especially helpful if your team works leads from lead inception to vehicle delivery. A tablet provides mobility and shows your customers you have a modern setup.

Smart phones are essential for easy communications and I would require anyone working in the department to have one of their own. I would not recommend a dealership provide these for their employees, however.

Quality Prospects / Leads and Calls Your success as a manager is heavily dependent on the quality of your prospects and Internet leads and calls. Whether you are the final decision maker with your digital marketing or not, you want to ensure you have a voice in the discussion. Lead quality requires vigilance on your part and each month you’ll want to measure the results of each source to make sure your process and communications efforts work more effectively. The better the leads, the easier it is to achieve your desired results.

3. Outline Your Lead-Handling Process There are many different patterns for managing leads and, fortunately, most of them work if implemented consistently. I recommend drawing a simple process diagram on a sheet of paper that identifies the steps to take when a lead arrives or the phone rings. Identify who should take them and what steps are required to obtain the desired results. Although this is most likely spelled out as actions in your CRM, it is better if your team knows the overall plan and appreciates the way it is designed. Our company offers a free lead-handling process that you can use.

2. Identify Resources Tools Quality CRM – This will become your new best friend and, hopefully, you were involved in the selection of the CRM. If not, you might have to work with the tool that is in place – because of long-term agreements – when you arrive even if it is not optimal. The best CRM is the one your team uses and any tool can work well if you support it and mandate that they leverage it daily. My recommendation is to work with the tool that is in place and notably, the tool with which the dealership has an agreement. Many dealerships change CRMs when a new Internet manager starts. But it’s best to work with the tool that is in place, work through

4. Balance Your Team Workload If your team’s workload is in balance, you will have happy and productive employees. If you are out of balance, you will have the opposite. It is best to set it up properly from the get-go to set the stage for success.

The workload is largely dependent on the structure you have in place. Below are some rule-of-thumb guides to help you get started: •

•

Sixty to 80 leads for each fulltime Internet salesperson if they work the deals from lead inception to vehicle delivery. With quality leads, ongoing lead nurturing, repeat and referral efforts, you can expect this to provide excellent opportunity for any successful Internet salesperson.

About 125 to 150 leads for each fulltime Internet specialist if they set appointments for the deal-

ership sales team. This volume affords time for quality engagement from the outset, as well as time for lead nurturing.

•

Thirty to 40 leads for each salesperson that works leads while also balancing their regular sales role.

This provides enough to make it matter and not too many to tip them over.

5. Develop Product Knowledge Experts Internet customers have easy access to information about their choice of vehicles and they typically know a great deal about their choices. As a result, they tend to judge the dealership person they communicate with on a more critical basis if they cannot effectively answer questions about their products. To meet Internet customer’s expectations it is important that you ensure that each person on your team is fully committed to learning about the products you represent.

For new inventory, have your team become product certified by the manufacturer and brush up their skills with product presentations on a monthly basis. If you utilize Internet specialists who are not salespeople, make sure they gain knowledge from watching presentations by the dealership sales team. I recommend regular testdriving the new vehicles so your team can learn about their unique features and benefits.

For used inventory, require daily inventory walks, if it is practical, or at the very least “clicks of fresh inventory.” It is also helpful to ask the salesperson that traded for the vehicle to tell you about the history so you can bring the vehicle to life for the customer.

6. Click where your customer clicks In order to understand what your customer expects from your Internet department, have each Internet team member visit the sites where your prospects learn about the products. Have them see where customers complete the forms to submit their requests for information or get motivated to call, text or chat. This will allow them to experience firsthand what messages your prospect receives while shopping and what messaging prompted them to submit their request.

This will be an eye-opening experience and will tell them a great deal about how customers are influenced by the lead submission path they take. You will also understand why customers are a little surprised when a dealership emails or calls them after they submit a lead.

There is plenty more to learn, but taking these first six steps will give you a head start and allow you to generate sales this week. CBT

David Kain President of Kain Automotive

September CAR BIZ TODAY

CBTNews.com

17

THE NATION’S #1 SERVICE ADVISOR SALES TRAINING What do tablets, express/quick service centers, price comparison boards, multi-point inspection sheets, software programs, menu boards, social media, alignment testers, battery testers, websites, etc., all have in common?

Not one of these things can look a customer in the eye and ask them for the sale!

I will teach your service team not only how to professionally ask for the sale and substantially LQFUHDVH \RXU 3URĂ€WV EXW , ZLOO DOVR VKRZ WKHP KRZ to substantially increase your Customer Retention and Survey Scores simultaneously. “Pro Talk was a well worth investment. The increases we have seen in our service departments was far beyond our expectations. What we found is that within 90 days, quicker than anticipated, there was an average increase in our ELR of $15.00. We had an increase of average hours per R.O. of .5. There was an increase of $80.00 per repair order.

We also saw an increase in our monthly CSI scores.�

John Cloninger

Cloninger Ford Toyota Scion Service Director of Fixed Operations

Jeff Cowan

THE CREATOR OF THE MODERN DAY WALK AROUND AND SELLING PROCESSES FOR SERVICE DEPARTMENTS EVEYWHERE

WHAT MAKES OUR TRAINING DIFFERENT

RESULTS AND ROI

WHAT WE DO FOR DEALERSHIPS

CALL TO FIND OUT HOW: (800) 248-2931 www.AutomotiveServiceTraining.com

Master the Art of

knowledge sharing

through Social Media

By Aaron Wirtz

T

here has been a lot of discussion about whether selling is an art or an exact science, and I think the same question should be applied to a dealership’s social media presence. Too much emphasis on the “science” of social tends to result in content that lacks soul, and often results in having to go back to the drawing board every time Facebook rolls out another algorithm change. However, relying only on the “art” of social makes it difficult to measure success, so where should the balance be struck? Fortunately, it’s not an either-or choice.

It’s sure easier to write about the science of social.

On paper, all the numbers seem to present a formula that anyone should be able to achieve. If you’ve ever managed social media at the dealership level, however, you know that it’s anything but easy. There is a sfundamental component of our social strategy that doesn’t get nearly enough attention – The art of giving with no expectation of return.

Share Your Marketing Knowledge Sometimes community-building involves learning how to be an active, responsible member of other communities, so learn how to enrich others with your participation. Local networking groups like the Chamber of Commerce and American Marketing Association can be rewarding, and offer frequent opportunities for volunteering and speaking. Remember, your marketing knowledge is immensely valuable to businesspeople in other industries.

In the car business, it’s easy to take for granted how far out on the cutting edge our advertising budgets allow us to be, and car people tend to only share best practices with other car people. Why not use what you’ve learned to get in front of your potential customers? It’s unlikely an organization will gather to hear you talk about your latest blowout sale, but you can be sure they’ll listen to you about your digital marketing initiatives. Rack up a few of these speaking engagements, and you’ll start to be recognized as a thought leader in your community.

Collaborate with Other Professionals Look for other businesses in your area that seem to be doing social media well — perhaps you can think of some already. Reach out to the person who manages their social accounts and invite them to talk shop over coffee or lunch. Spending time understanding the social media framework of other industries has helped me bounce back from the occasional creative slump, and it never hurts to have more influential friends.

Professional social media is one of the best conversation starters.

Sponsor Events for Car Enthusiasts Once a month, the Wichita Subaru Owners Group, an independent club of Subaru performance enthusiasts, gathers on our lot for a monthly meet up. Not only do they visit the service and parts departments often, we regularly sell our hottest vehicles via referrals from members of the group. It’s also a great opportunity for our sales staff to receive a free education in the language of performance modification, not to mention the many photo and video opportunities that take place in front of our building.

When we sponsor a charity event, one of the first things I ask is if I can make a promotional video for the organization to use in their marketing efforts, and no one has yet refused. Again, the ability to create compelling pictures, video and graphics is one that dealerships often take for granted, and organizations who don’t have those resources will share what you make for them with passion.

Differentiate your dealership from the other organizations that sponsor the event, and keep in mind that the employees of the nonprofits you support can often become highly activated ambassadors of your brand.

Give them something to share.

Be patient. A sharable social presence doesn’t happen overnight, no matter how many advertising dollars you plug in. Practicing the art of giving will provide you with a foundation of personal relationships which algorithm updates cannot destroy, and it happens one person at a time. CBT

Aaron Wirtz

Media and Marketing Manager for Subaru of Wichita

Create Content for Others If you’re having trouble getting people to share your content, try creating content for others. This one pays off big, even when you start small. For example, do you ever have lunch catered in? Try ordering from a local restaurant, take a picture of your delivery person in front of some of your showroom signage, and then send the picture along. They just might use it in their own social media marketing efforts.

September CAR BIZ TODAY

CBTNews.com

19

R

obert Vail is not one to sit on the sidelines while others play the game. In fact, the newly-elected chairman of the Greater New York Automobile Dealers Association has been actively working to help push new law through the state’s legislature that, “protects dealers from unnecessary and unwanted manufacturer pressure, and prevents any future threat of OEMs competing against franchisees,” according to a release

by GNYADA.

By Carol White

A Dealer’s Dealer “I’m one of the guys who wants to know; I don’t just stand by and wait for things to happen. I try to participate,” -Robert Vail

20

CBTNews.com

CAR BIZ TODAY September

New York Gov. Andrew Cuomo signed the Franchise Protection Bill on June 16, bringing two years of hard work and a combined effort of several dealer associations, led by former GNYADA Chairman Neale Kuperman, to fruition. One of the biggest issues facing franchised dealers today is their “relations with factories and the relations with government regulations,” said Vail. “You have to offset that with the dealers’ ability to do business and make a profit. There has to be a balance.”

Vail, owner of Vail Auto Group in Bedford Hills, N.Y., has been championing the rights and causes of the franchised new car dealer for many years. He has been a member of the GNYADA board of directors since 1993 and has served as secretary, treasurer and vice chairman on the executive committee and as chairman of the finance committee. He is a former president of the Westchester Chevrolet Dealers Association, a New York State Automobile Dealers Association board member and a Buick-GMC Advertising board member.

In addition, he has served on Chevrolet’s Regional Dealer Council and GMAC’s dealer advisory board.

“I’m one of the guys who wants to know; I don’t just stand by and wait for things to happen. I try to participate,” he said.

His maternal grandfather first opened a Chevrolet dealership in 1918 and 20 years later operated an Oldsmobile dealership in Ossining, N.Y., until it closed during World War II. After the war, Vail’s father, who worked for Vail’s grandfather, opened a Studebaker dealership, while his uncle opened a Plymouth-Chrysler-Imperial dealership in the same town.

Apparently the car biz was in Vail’s DNA. He began his career at 12 as a technician in his father’s dealership doing “a lot of handling of parts and cleaning the shop,” he said of his early years as a tech. “You break in, and when you just can’t wait to work on a car, it helps. That passion has to be there.”

That passion for the business is what drives Vail even today. “Every day, with the good and the bad, there’s something new, and you get to interact with so many interesting people – whether it’s your customers or your employees. You learn something every day and you have to accomplish something every day,” he said.

After four years as a Dodge dealer, his father eventually opened a used car business, where Vail continued to work for a couple of years after graduating from college.

But the young Vail got the new-car itch and left the family business to start his career in the franchised business. After only two years, he went to work for his second new car franchise where he was promoted to general manager within three months, “which I thought was pretty good for a 28-year-old,” he said. Six years later, he made the jump from employee to dealer when General Motors awarded him a Chevy dealership in Harrison, N.Y. “1982 was a very recessionary time, with 18-percent interest rates,” he recalled. “It was a very horrible time in the business, but those are the times that also make opportunities.

“Getting a Chevy store was my dream. Chevrolet was No. 1 at the time, and if you were a Chevy dealer, that was the greatest thing. So that was just the start, and to be able to get in and be a Chevy dealer and go from six employees to 30 within a couple of years, that was really a great thing for me.”

In 1991 he acquired the Bedford Hills Buick-GMC store and in 1998 bought a Pontiac franchise and incorporated

it under the same rooftop. In 2009 when all good things came to an end, Vail found himself in the same boat as many of his colleagues, losing both the Harrison store and the Pontiac brand. Vail’s saving grace was having the Bedford Hills store to where he was able to transfer his entire vehicle and parts inventory.

In addition to GNYADA’s government relations program, it also organizes the New York International Automobile Show, the oldest auto show in North America.

“It was a very trying time, but you have to go forward the best you can,” he said. “You’ll find most people in the car business are ‘glass-half-full’ kind of guys. I guess, from a sales or marketing background, you have to be positive and you have to portray that attitude to your employees and customers.”

One focus of the 104-year-old association is introducing new people to the auto industry. GNYADA operates the Center for Automotive Education and Training, a $27 million state-of-the-art facility in Whitestone, Queens, N.Y., which offers training in every area of the dealership. Located within the 50,000 square-foot building is Lincoln Technical Institute, the association’s partner in training service technicians.

With the help of a few dedicated employees, along with refined processes, a focus on the positives and a general improvement in the economy, Vail Buick GMC has bounced back. He also attributes a great customer base, the return of leasing (more than 60 percent of his business) and a revived competition in financial sources, including floorplanning, to his company’s success.

As the newly elected chairman, Vail hopes to get all the members of GNYADA actively involved in the industry. “I would like to see Greater New York recognized for the way we deal with the other automotive groups within the state, and of course with NADA. Again, it’s staying connected and staying in the loop – staying informed.” CBT

The dealership recently went through a $1 million renovation. “It’s nice to have a totally revitalized dealership. The customers like it. It’s a great place for us to come to work every day.” Vail’s son Gregory represents the fourth generation in the business and serves as the company’s vice president, which allows Vail to continue his work as a dealer advocate with GNYADA.

BY THE NUMBERS • • • • • • •

Number of stores: 1 Number of employees: 28 Brands represented: Buick, GMC New Sales Volume: 400 Pre-owned Sales Volume: 150 Leasing: 60 percent Inventory: 125 new, 25 used

Robert Vail, Owner Gregory Vail, Vice President

September CAR BIZ TODAY

CBTNews.com

21

‘Getting’ MILLENNIALS A LOOK AHEAD AT SELLING TO TOMORROW’S VEHICLE BUYERS

By Dale Pollak

A

recent Cox Automotive-sponsored research summit in Atlanta, Ga., examined some interesting findings regarding the next up-and-coming generation of car buyers, known as millennials or Generation Y. For instance: •

•

•

•

22

Theirs is a “kinship economy,” according to J. Walker Smith, chairman of The Futures Company, a marketing research firm. As millennials engage retailers, a positive experience is paramount. “It’s all about how we resonate with people,” Smith says. “They don’t want a relationship with your brand; they want relationships with other people.”

They expect to “co-create” retail experiences, says Sheralyn Hartwell, executive director of Frank N. Magid Associates, which specializes in business strategy research and development. “They expect to have their own custom experience, and they expect to be co-creators,” Hartwell says.

They believe they are a generation of “creators” who are part of a group that will “change outdated systems,” says Danielle Paponetti, director of ad sales research for Viacom Media Networks, which owns MTV and VH1.

They view cars as “appliances” that offer the ability to “explore and control” their destiny. They are less likely to get driver’s licenses when they reach driving age, and vehicle purchases often coincide with life events, such as a new job or relocation.

•

They use technology – smart phones, in particular – to research shopping decisions, and they “expect you to know more than they do” about the products and purchases under consideration, Hartwell says.

•

They are less than satisfied with the in-store experiences dealers offer, says Isabelle Helms, vice president of research and market intelligence for Cox Automotive. In particular, negotiation and paper-

CBTNews.com

CAR BIZ TODAY September

work are among the chief complaints they cite about buying vehicles, she says.

These insights and the individual findings were not all that surprising to me — they ran consistent with what I’ve read and seen in the past. However, taken as a group, the insights got me thinking about three specific things dealers will need to do to remain relevant and satisfying retailers as they increasingly serve a new generation of smart, technology-astute buyers.

1. Align Your Sales Process and Strategy to Emerging Expectations It shouldn’t surprise any dealer that tomorrow’s generation of vehicle buyers doesn’t like a purchase process that requires negotiation and up to four hours in the showroom to complete a deal. In fact, these are key drivers behind the growing number of dealers who have re-engineered their sales strategy toward a model that moves cars with little or no negotiation. Some are pressing the in-showroom sales time line to 90 minutes and less.

This model requires two steps many dealers are still reluctant to undertake—putting “first pencil-like” prices on new and used vehicles online, and standing firmly behind their market-validated asking prices in the showroom.

To be sure, this sales strategy re-alignment is not easy.

It’s really a cultural shift that requires pay-plan and process changes to advance a business model where transparency leads to trust and, in turn, trust leads to more cost- and time-efficient sales and improved profitability. Currently, dealers who have adopted the limited or no-negotiation models report positive early payoffs, and greater satisfaction from millennial and other buyers who are delighted to share their experiences with friends.

2. Embrace Technology If anything, the findings listed above suggest that the speed of technological change for dealers will only increase. Millennial buyers like photos, but they love videos. They get frustrated when they can’t easily find prices or vehicles using mobile devices. More and more, they’ll also want to complete a greater share of their vehicle purchases online.

In her research findings, Hartwell shared that millennials want to engage retailers who “get them.” This means dealers will need to know more about each customer before the first phone call or showroom visit — a level of understanding that is only possible with new technologies. In the end, dealers will need to make sure every customer engagement picks up where the last one left off.

3. Let Go of the Gen Y Stereotypes Paponetti’s research reminds baby boomers that we can tend to be dismissive of the positive traits millennials can bring to a business. They consider themselves creative innovators who thrive in collaborative environments and question the “whys” behind processes that strike them as inefficient or outmoded. They are technology “natives” for whom adapting to new technologies is relatively easy. They have a willingness to take risks and learn from mistakes. They are loyal and hard workers when they receive the near-constant level of feedback they need to shine and feel happy.

As dealers prepare for future buyers, they will be challenged, yet again, to let go of some of the traditional ways of retailing new and used vehicles. The good news: Based on the size of the millennial demographic, there will be a lot of up-and-coming professionals entering the work force to help take their businesses where they’ll need to be. CBT

Dale Pollak Founder of vAuto Inc.

THANKS FOR MAKING US

THE MOST WATCHED

DAILY NEWSCAST IN THE RETAIL AUTOMOTIVE INDUSTRY!

.com

Joe Verde

Jeff Cowan

Grant Cardone

Jeff Dyke

John Elway

David Lewis

Mike Jackson

Joe Hinrichs

Mark Tewart

Mark Fields

Mary Barra

David Kain

Ali Amirrezvani

Mike Maroone

Phil Sura

Alan Mulally

Kirk Manzo

Scott Keogh

Cory Mosley

Dave Anderson

Scott Painter

Paul Potratz

CALL TODAY AND RESERVE YOUR ADVERTISING SPACE FOR 2015 | 678.221.2955 | ADSALES@CBTNEWS.COM

How to Avoid

5 COMMON TRAPS that Could Prevent Your

Sales Success

By Joe Verde

A

ton of new salespeople start out in the car business every month. Why? They’re taking the place of those salespeople who got out of the car business last month. Why is there so much turnover? It could be because they were not satisfied – mostly with the money. Most likely, they fell into five of the most common traps that keep salespeople from succeeding.

Most new – and many experienced – salespeople are snared by these five traps that keep them from reaching higher levels in sales, and earning the kind of money they thought they could make selling cars. But not you.

If you want to earn a six-figure income selling cars, avoid these at all costs.

3. Prequalifying Customers Because of trap No. 1, hanging around in the huddle with a bunch of low-achievers all day, those salespeople learn to play a game with their commissions that they can’t possibly win: “Guess Who The Buyers Are?” And every time they play, they lose sales, gross and commissions.

In this business, if you want to make a lot of money, assume that everyone you talk to will buy a car from you today and will pay you a ton if you do your job right.

1. The Huddle

5. No Goals, Just Good Intentions The average salesperson works long and hard and has good intentions. Everybody reading this has the guts to be on straight commission and works 50 percent more hours than employees in almost every other industry.

The problem is that salespeople aren’t paid hourly.

They are paid for production, and the rewards for actually producing are unlimited. But just putting in long, hard hours with good intentions only results in eight to 12 units a month and $25,000 to $40,000 a year.

2. Justifying Mediocrity You’ve heard about the 80/20 rule – how 20 percent of the people produce 80 percent of the revenue? It is true.

Twenty percent of the retail salespeople in our profession are taking home 80 percent of the total commissions earned while the other 80 percent of the salespeople justify why they cannot sell more and earn more.

Of course stuff happens that affect sales, but with a good plan, better skills and effective work habits, you can sell more anytime you want to.

24

CBTNews.com

CAR BIZ TODAY September

When you talk to a price shopper, you need to spend more time, not less time building rapport, finding their hot buttons that aren’t about price, and building a ton of value, so they’ll buy the vehicle from you, and pay you more than they could have somewhere else.

Waiting for ups all day is a guaranteed way to waste a career in the highest-paying profession in the country.

Why is it important to stay out of the huddle? Because the only people who have the time to hang around and talk all day are those salespeople earning average wages, or less. Common sense says if you hang around a bunch of underachievers all day, you’ll be stuck selling and earning about what they do. Sure, you want to make friends, but your reason for going to work is to make a living.

Excuses such as the market, the weather, no inventory, not enough advertising, too many incentives, no incentives, finance doesn’t try hard enough, the manager doesn’t work deals right, it’s summer or it’s winter and nobody’s buying. It’s Christmas, Thanksgiving, school is out for the summer, school started again, it’s Monday, it’s day, it’s night, it’s cold, it’s hot.

Instead of taking action and learning how to follow up and prospect for their own new business, those salespeople sit around waiting for their dealer to advertise more and supply them with another hard-to-close “up” on the lot. Then after all that waiting, when one of those tough-to-close price shoppers actually shows up after they’ve visited five to seven other dealerships, trap No. 3 kicks in and they start taking every shortcut they can.

Since you have to go to work either way, why not work smarter than the average salesperson and earn $100,000-plus every year instead of average wages?

Avoid the traps, set clear goals, write an effective plan, develop your skills and...go to work to work! CBT

4. Waiting for the Walk In Those salespeople spend their whole career waiting for and talking to walk-in customers. Many salespeople don’t count everybody they talk to, and have convinced themselves they have a 20- to 30-percent closing ratio.

As I said, they do not count everybody. When you actually use real numbers and real math, the true closing ratio for walk-in customers is 10 percent while the closing ratio for repeat, referrals and be-backs starts at 50 percent or more.

Joe Verde

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

Tips for Closing on the Phone

By Grant Cardone

M

astering the phone close is something all auto salespeople must aim for. Ninety-two percent of all customer interaction happens on the phone. Companies must learn to engage, sell and close when the buyer shows interest.

I often listen to my people as they are handling calls and sometimes I’ll jump in. It pumps up my team, shows them I have their backs and teaches them at the same time. I urge managers out there to pay attention, really listen and look for opportunities to help a colleague who might be having trouble getting to the close.

The phone close is always such a common challenge to salespeople. How great would it be to save time by closing via phone only to handle the paperwork and pick-up arrangements after? Master the phone close and watch how much faster you get deals handled from start to finish.

1. Know when to close After you presented the product, determined it’s the right product for the buyer’s needs and answered all questions, have broken down terms and options, it’s time to move into the close. A salesperson must know when to make that move. If you have the right product and clarity on the payment, it is your responsibility to get to the close.

2. Don’t go in reverse It’s common for salespeople to think that they have to repeat the product benefits. They don’t. That was already explained. The buyer is sold on the product. It is usually for another reason that they are being held from making the final decision. Remember, they need your help to make a final decision and sign on the line.

3. Be clear with the customer Oftentimes the customer is ready to close but hung up on some other issue – maybe it’s $100, or mileage allotment on a lease. It could be the smallest thing in a bigger picture but they hold on to it. When this happens, help them to see that the small thing is not the focus. Getting the deal done is what happens next. Ask the customer, “Do you want to do this, yay or nay, yes or no.”

4. If your salesperson is having trouble, step in and get it done As mentioned earlier, managers have a great opportunity here. They can step up and help to lend their experience to get the client off the fence. You don’t want to miss the sale because a less experienced closer was left alone.

5. Be confident Don’t worry about pressuring the customer or appearing desperate. If you are sold on the product and your ability to present it in a way that develops trust, then you can confidently handle the close.

Don’t sell yourself on any negative nonsense that messes with your confidence. If you are able to get a commitment via phone, you are able to get the vehicle to the customer quicker – and people like things done fast. CBT

Grant Cardone

Entrepreneur and New York Times best-selling author

26

CBTNews.com

CAR BIZ TODAY September

“I’ll buy a car with an accident, but I need to know how severe it was. CARFAX Reports help me separate cars with minor damage from the wrecks.”

DON’T BE LEFT OUT.

- David Askew

Dick Scott Chrysler Dodge Jeep Plymouth, MI

Information you can’t get anywhere else.

Another great reason to become a CARFAX® Advantage Dealer®. 855.349.4929

Piecing together your customer

By Jenn Reid

V

28

ehicles come in many different trim levels and packages – just like your customers – and simply viewing them as a credit score alone is no longer enough to ensure you are putting them in the right vehicle with the right lender, and delivered right the first time. According to a recent Reuters’ story, auto sales in June posted the best annualized figures in eight years, hitting levels that have not been seen since before the financial crisis. With the rapid evolution of customers shopping online and the large number of millennial shoppers coming down the pipeline, dealers need to look beyond the three digits of the credit score.

degree view” of the customer. Dealers should strive to have the right information on the consumer’s finances, credit report, budget and debt obligation, as well as be able to verify their identity as early in the sales process as possible. This all in addition to a clear understanding of the customer’s vehicle needs. Accurately having and using this information puts the meaning back into the word “consultant” next to the “sales and leasing” title on a dealer’s business card.

In a time when the automotive industry has gained record momentum and competition is strengthening, having a total view of the customer – rather than just a three-digit number – is critical to select the right new or used vehicle, match the proper finance source to the customer, and improve the speed of the delivery process. It is also essential to get vehicles delivered the right way the first time, without the risk of lender buybacks. This will ensure a positive customer experience and help maintain strong lender relationships.

The Customer Budget Oftentimes, if a dealer does not have a clear understanding of a customer’s budget and employment information, it can lead to major errors or delays in delivery.

Regardless of a customer’s credit score, it is important to know what amount they have budgeted each month to make their payments and to ensure that lenders are getting reliable information about their income.

Anyone who has been in the business for some period of time has run into one or all of these situations:

Social media makes for an easy outlet to air consumer grievances, so dealers need to be aware of the impact a poorly executed sales and financing process could have to their bottom line. On the flip side, if a consumer has a positive experience shopping at the dealership, they could also become a promoter or marketer for the dealership via social media as well. Bearing that in mind, an important element to achieve satisfaction is a true “360-

•

Buyer’s remorse when the first statement comes and it is time for the customer to make the first payment

•

Having to switch customers from a vehicle they are sold on to a new vehicle due to affordability, or not having the credit to qualify

CBTNews.com

CAR BIZ TODAY September

Some key components of the 360-degree view of the customer are:

•

Customers having to leave the showroom because of income and employment stipulations that they were unprepared to provide

•

Lender asking for a buy-back due to income and employment information being inaccurate.

These and many more scenarios can all trace back to one common denominator – a need for a complete understanding of the customer’s budget.

In order to fully grasp a customer’s budget, it is essential to first define how that consumer is paid – whether that be hourly, salaried or on commission. It is also critical to determine who their employer is and how long that consumer has been working at the particular business.

Far too often, dealers brush over these details and end up in precarious situations like having to delay delivery due to a lender stipulation being added and not being able to clear it. Another example is a lender ends up having to manually underwrite a loan versus the loan being auto-decisioned due to misstated information or inflated income and job time on the application.

Unfortunately, simple short cuts to get a vehicle delivered are not worth the risk because they can lead to application fraud and can lead to double the work for the dealer. There are tools available so lenders can have access to these kinds of income and employment details and are able to identify these discrepancies.

Also, analysis shows that nearly 25 percent of stated income is inflated by 15 percent or more on auto loan applications, which increases dealers’ risk for lender buy backs, as well as a negative impact to their lender relationship. Again, having access to income and employment information early in the sales process is a quick fix to what could be very costly and time-consuming mistakes. By taking time to leverage tools available to get this information and help consult with the customer, dealers will benefit from a faster delivery process, stronger lender approvals, improved customer and lender relationships and right delivery of the vehicle the first time.

Alternative Views According to the 2011 FDIC National Survey of Unbanked and Underbanked Households, 28 percent of U.S. households are unbanked or underbanked, having either limited or no credit history. This adds up to be about 68 million potential customers.

process can allow dealership professionals to offer the customer experience that the next generation of vehicle shoppers – meaning millenials – expects.

customer why they need to resign at a higher rate is never a conversation that goes well. It could also lead to costly rate buy downs or low CSI scores.

Financial Clarity Dealers must take a closer look at their customers’ credit histories rather than solely focusing on the number at the top of the page. By having a clearer understanding of the last several years and asking questions about certain items within a borrower’s credit history, dealers can better assess if the customer’s situation is improving and how to best structure a deal or to which lender to send the deal.

This is yet another reason why dealers need to have the most accurate, up-to-date information about their buyer’s financial well-being before they close the sale.

Doing so enables them to have confident discussions with their customers and lenders, and in turn, move vehicles off the lot more quickly.

With 2014 projected as the best year in U.S. auto sales during the post-recession recovery, dealers cannot afford to miss opportunities simply because they failed to look at a customer’s complete financial picture by instead focusing only on the credit score. A 360-degree view means dealers must have the right information at their fingertips including credit capacity, income and employment information, alternative payment history and credit scores. Using this strategy is a win-win for dealers, lenders and consumers as more satisfied car-shoppers are able to easily navigate the sales and financing process and drive off in a car that meets all of their needs. CBT

In a time when the automotive industry has gained record momentum and competition is strengthening, having a total view of the customer – rather than just a three-digit number – is critical to select the right new or used vehicle, match the proper finance source to the customer, and improve the speed of the delivery process.

To capitalize on this market segment, dealers should consider other alternative payment data sources, such as utility history, cell phone payments and short-term loans. This data can be used to overcome thin or no credit when talking with lenders, and help paint a stable picture of a customer, which enable dealers to deliver vehicles to customers that may have been perceived as difficult to finance.

Also, having additional information such as college degrees or trade certifications can help get customers into lender programs, but requires dealers to use proper tools or ask the right questions to get this information and structure deals correctly. Knowing this early in the

This additional level of detail need not slow the delivery process. Using a credit report that has an intuitive layout can help dealers more efficiently access a customer’s credit profile.

While FICO scores may look the same, lenders incorporate different versions into their scorecards and models. It is imperative for the dealer to match up the right FICO score version with the one that their lender is using. If the vehicle is “spot delivered” and does not match the lender terms, it could easily turn into a “redelivery,” – where the customer needs to return to the dealership and is met with different loan terms.

A situation where the dealer has to explain to a prime

Jenn Reid

Sr. Director of Product Marketing, Automotive Services at Equifax

September CAR BIZ TODAY

CBTNews.com

29

CREATING A

SALES CULTURE IN YOUR

SERVICE DEPARTMENT

By Jeff Cowan

“W

e want to create a sales team and sales culture in our service department, but where do we start?” It’s a great question that actually has a fairly easy answer and solution. Before taking the steps to create a sales culture, however, there are three simple rules with which you must be diligent:

1. Be patient 2. Stay focused on your end goal 3. Do not settle for less than what you want Steps to Turning your ‘Service Department’ into a ‘Selling Service Department’

Realize that everything you do and everything you want to acquire has to be sold High consistent customer satisfaction survey scores won’t just happen; you have to train your staff to sell high and to have consistent customer satisfaction survey scores. High customer retention won’t just happen. If you want high customer retention, you have to train your staff to sell high customer retention. And if you want high gross profits and sells, you have to train your staff to sell.

This is not accomplished by just training service advisors because they are not the only ones who will affect those areas. Everyone in the department will affect those numbers and therefore everyone needs to be a trained salesperson. By training all of your staff in this fashion, you will create a culture of selling and excellent customer service. What your employees say and do will sell your customers – either on coming back or on going somewhere that they can get the kind of service for which they were looking .

Place ads for every position that will attract salespeople It is much easier to train someone to sell if they are recruited as a salesperson. For example, if you want to attract high-producing selling technicians then place an ad that states “Our service advisors have a customer paid repair order average of 3.0, an effective labor rate of $99, average over $100,000 a month in total sales and have survey scores to match. Apply only if you have the skill to handle our large 30

CBTNews.com

CAR BIZ TODAY September

volume of work” or “Our average technician turns over 60 hours a week, what do yours produce?” or “Entrylevel positions open (porters, greeters, cashiers, receptionist, etc.) that range in pay from $00.00 to $00.00 with the potential to make up to $80,000 annually within four years. You must love working with the public or be willing to learn how. Comprehensive training included.”

The system used to train your salespeople is also simple.

•

They should receive initial training before their first day on the job and then two to four weeks of daily training until you feel they have fully and enthusiastically grasped the task at hand.

•

They then should be trained weekly in short 15to 30-minute sales meetings – sometimes with the department as a whole, sometimes with various teams, solely with their team and sometimes as an individual. These meetings should always be short, to-the-point, upbeat and always include something that will help them improve their skill level.

•

Role-playing should never be overlooked. It feels silly. It is uncomfortable but it is highly effective. If a person refuses to role-play with you, it may be the first sign that you really didn’t find the sales-minded person for which you were looking.

Airline pilots spend countless hours in simulators role-playing every situation imaginable, even crashing! Why? So that they are prepared for any situation when it happens. Role-playing is part of the job.

•

Install a sales board that has every employee on it, what their goals are for their area of sales, their previous day’s results, their month-to-date results and their projected month-end results. Each employee should be required to set their goal in each area in a department-wide monthly meeting.

And the sales board should be placed in an area where every employee sees it every day.

Interview your recruits like salespeople If you do not know what to look for in a salesperson or how to go about it, your sales department and managers most likely do. Sit in on their interviews and have them help you with yours. Also, don’t underestimate the value of the various personality tests that are widely available.

Develop and offer pay plans that encourage individual and group sales I remember working in a Canadian dealership where every cashier was hired, trained and paid like a salesperson. They offered a car cleaning kit to every customer with which they came in contact. The kits were on a very well designed point-of-purchase display right next to where the customers paid for their services.

The cashiers earned $5 for each one they sold with a small bonus built in for obtaining certain sales goals.

They also were trained and incentivized to encourage customers to reconsider services they had declined.

They didn’t come across as pushy or overly aggressive, but caring and helpful instead. And they were effective.

They were constantly trained and encouraged with the ultimate goal of one day moving up the ladder to a higher-paying sales position.

Once you find the right person for a given position, train, train and retrain them in the art of selling.

In the example above, the cashiers weren’t really hired to cashier; they were hired to sell product, customer service and retention. They not only did it; they did it with pride, and delivered world-class service and results.

•

with every goal and what income they have and will likely earn.

•

To keep your sales staff excited and interested, you should constantly seek out new ideas and products with which they can work, keeping in mind some will be “home runs” and others will not.

Some products and ideas will be popular with your customers and then fade, some will never be popular with your customers, and some will always be popular. But you will never know which are which unless you try something new. True salespeople like things that are new. They liked to be challenged.

As the manager, take control and stop waiting. No one is going to accomplish this for you. There is no single magic bullet, program or process that will get it done.

This project will be the easiest hard thing you have ever done or the hardest easy project you have ever done.

As you pursue it, you will begin to see the effects and results instantly. It is not a question of whether it will work or not – it will. The question is, do you want your department run by clerks getting the results you have now, or do you want it run by professional salespeople who produce the results you want while delivering a world-class sales experience for your customers? CBT

Jeff Cowan

President of Jeff Cowan’s Pro Talk Inc.

Daily individual sales sheets should be handed out to each employee. These sheets should have the same information on them as stated above with the primary difference being that it only has that individual’s numbers and their projected end-of-month pay. It is vital that every salesperson knows exactly where they stand every day

September CAR BIZ TODAY

CBTNews.com

31

RECRUITING

TECHS

HOW HIGH-QUALITY TECHS IMPACT A

DEALER’S BOTTOM LINE

By Walt Langley

“C

onvenient,” “efficient” and “relaxing” aren’t typically the first words that come to mind when customers are describing their car service experience – but they should be. When you look at service centers at top dealerships today, you’ll find theater-sized televisions, plush recliners, Wi-Fi, complimentary refreshments and a plethora of other amenities for customers. Why? Because the service department is a critical revenue stream for dealerships.

In 2013, total sales for service, parts and the body shop were $84.6 billion, up 5 percent from the previous year, according to the 2015 NADA Data: Annual Financial Report of America’s Franchised New-Car Dealerships.

That’s a lot of added dollars for dealerships outside of traditional sales channels.

In an effort to take customer service to the highest level, top dealers are rapidly implementing quick-service maintenance lanes to service cars efficiently and significantly reduce wait time for customers. Worldclass facilities and quick-service maintenance lanes will keep your customer coming back to see you every 5,000 miles, as long as what’s going on behind the scenes is running on all cylinders.

Gone are the days when warranty and heavy repairs contributed the bulk of dealer service revenue. The quality of cars has improved significantly over the last 10 years, keeping them on the road longer than ever before at a record high of 11.4 years, according to an IHS Automotive study. Simply put, vehicles aren’t breaking like they used to. This has forced dealers to become more aggressive and creative with their revenue channels in the service department or suffer the consequences.

Dealers across the country have seen a decrease in income from the warranty and heavy repairs over a car’s lifetime, making quick service a critical revenue stream. The initial investment to get a quick-service bay up and running may be significant, but well-priced maintenance and light repairs will give your dealership a competitive edge.

When customers pull up to a quick-service lane, they are expecting just that. If you don’t keep up your end of the deal, there is a good chance they won’t be back for another tune-up and an even better chance that you’ll miss out on the next sizable repair or maintenance issue that is on the horizon. The success of a quick-service lane relies heavily on the techs working these bays.

Master technicians shouldn’t spend their days changing oil and rotating tires – you need A-class

32

CBTNews.com

CAR BIZ TODAY September

techs focused on A-level jobs that bring in significant revenues. Therefore, the key to a successful quick-service lane is entry-level techs.

Scouting Top-Notch Techs Dealerships need entry-level techs who are ready to hit the ground running the moment they step foot in your shop. High-quality techs behind the scenes will ensure that your quick-service operation runs smoothly and efficiently every day. So what kind of techs should you look for?

Entry-level techs who have completed manufacturer-specific training programs are a huge advantage for your dealership. These techs have trained on the manufacturer’s latest vehicle types and technologies, which makes for an easy transition into the real world.

Look to automotive training for ready-to-work entrylevel techs. These programs provide students with training and skills that prepare them for the industry.

The success of a quick-service lane depends heavily upon efficiency and you need techs who can work independently, quickly and confidently. Many service techs interact with customers directly. Look for individuals who are personable and friendly and who conduct themselves in a professional manner to ensure they will provide the quality service your customers expect every time they visit your service center.

Staffing quick-service maintenance lanes with high-quality entry-level techs will help take your dealership to the next level.

Quick service is an essential component to the modern dealership that customers have come to expect, in addition to a service center waiting area with all of the modern bells and whistles.

When quick-service lanes are staffed appropriately and run efficiently, your customer service scores will undoubtedly increase. Happy customers will return time and time again, improving your bottom line and putting you a step above the competition. CBT

Walt Langley

Vice President Industry Alliance – Automotive at Universal Technical Institute

JOE VERDE

The #1 Training Company In The Car Business

493 Years Of Experience The Training Partnership That Works!

Your Joe Verde Training Team

Kathleen 30 Years

Gail 22 Years

You Can Count On Joe’s Training For Results “Our units are up 10%, grosses 30%!”

“We started using Joe Verde Training about 2 months ago, sending managers to class and using JVTN® (and the tracking). Let me tell you what a difference it has made at our dealership – everyone’s attitude, motivation, and work ethic has drastically improved.

Ron 22 Years

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

Nina 20 Years

Bobbie 19 Years

Dan 19 Years

Kate 19 Years

Jeff 17 Years

– Mike Udell, General Manager Toyota of Grand Rapids, MI

Joe Verde

F

or 29 years, we’ve taught processes to help you develop Leaders in management and High Achievers in sales, so you can improve your Sales & Growth every year.

Great processes are just one step. Combined with our live workshops plus our daily JVTN® online training, the most important reason we’ve helped more dealers, managers and salespeople reach levels they never thought possible is our legendary support.

493 Years Of Joe Verde Experience Helping You To Succeed!

The Joe Verde team has 493 years of combined experience working to provide you with an unequaled level of support, so you can reach all of your sales and income goals.

When you’re ready to take your sales & profits to a new level, give us a call. We’ll give you the best training you’ve ever had, with better results than you’ve ever imagined!

I’m starting to hear Joe Verde word tracks on the floor more and more and couldn’t be more proud and excited to see where we are going to be in 6 months! So if anyone doubts that this training works, we are living proof it does.

Thank you Joe!”

Sean 17 Years

Susy 16 Years

Kevin 16 Years

Melissa 15 Years

Mark 15 Years

Sales Workshops n How To Sell A Car & Close The Sale Aren’t you tired of explaining why you don't sell more? Sign up now.

Karen 13 Years

Roy 12 Years

Sean 13 Years

Todd 10 Years

Jim 13 Years

Joe Jr. 10 Years

Chase 12 Years

Mark 10 Years

Lois 12 Years

Kim 10 Years

n How To Close The Sale, Overcome Objections & Negotiate Get solid buying commitments, more deliveries & higher gross. n Business Development You only miss 8 out of 9 deliveries from your lead sources. We fix that.

Management Workshops Mary Lou 9 Years

Doug 8 Years

Daniel 8 Years

Nicole 7 Years

Terrie 6 Years

n Team Leadership How important is Leadership? How about Teamwork? With both – you win! n Negotiating & Desking This workshop is for (Serious, Profit Minded) Dealers & Managers Only.

Bill 5 Years

Barbara 5 Years

Lauren 5 Years

Mike 5 Years

Sharon 4 Years

Nathan 4 Years

Darcy 4 Years

Heather 4 Years

Kristen 3 Years

Stephanie 3 Years

Jeannine 3 Years

Jen 3 Years

Victoria 3 Years

Jenny 3 Years

Nancy 3 Years

Courtney 2 Years

Amie 2 Years

Eric 1 Year

Mike 1 Year

Carlos 1 Year

n Train The Trainer “They should learn on their own...blah, blah blah.” (You’re such a kidder!)

JVTN® Online Training

“Your Best Tool For In-Dealership Sales Training”

Develop your skills & change your life • Call 1-888-712-6647 • JoeVerde.com • JVTN.com

CREATE AND INCREASE

R-E-S-P-E-C-T WITH WOMEN BUYERS

By Anne Fleming

6 THINGS CAR DEALERS SHOULD KNOW

W

omen buy nearly half of the cars in the U.S., while they influence an estimated 80 percent of all such decisions. Their buying power has never been greater. In the atmosphere of car dealerships, it becomes even more important to ensure that women are treated with respect without any discrimination. If sales professionals treat women in a patronizing or condescending manner, even if unintended or inadvertently, it could result in the loss of hundreds of thousands of dollars for the dealership.

On average, dealerships staff almost 18 percent women today. Even though there is a shift in women on the sales floor, there still needs to be focus on making the showrooms more appealing and women-friendly. This will ensure that auto dealers will close more deals and, thus, surpass the competition.

Latest Findings: Respect Carries the Day In the latest industry report by Women-Drivers.com, for the first time, women state that respect is the top reason they bought from their sales advisor. Trust has always been the top spot. Having a respectful negotiation is now the No. 1 prerequisite in the formula to selling to women. The top five reasons women buy from their salesperson are: • • • • •

Respect Trust Likeable Knowledgeable Understanding

Price is actually the sixth reason – the sales advisor needs to have a high “EQ,” or emotional intelligence, and meet these benchmarks before women determine if it’s a good fit and are willing to discuss price.

How Dealers Create Respect Among Women Car Buyers Treating women with respect and kindness is the quickest way to result in increased sales and profits for the auto dealership. Some of the ways auto dealerships can create a sense of respect among female clients include: 34

CBTNews.com

CAR BIZ TODAY September

1. A Warm, Genuine Greeting

4. Make Them Feel Comfortable

The first thing that women notice is how the sales advisor greets them when they enter the showroom. It is vital that the sales staff greet woman in a warm and pleasant manner. In order to create a sense of respect, salesmen and saleswomen need to just be themselves and be genuine.

Another tip to make the women feel respected in a dealership is to ensure that they have a pleasant and comfortable experience. The sales advisors should courteously ask them whether they need a drink of water, soda or a warm beverage. When women are treated in this manner, it tremendously increases their chances of coming back to the dealership. In fact, they might bring more friends with them.

Introduce yourself in a professional and warm manner.

Address women by their name or with a respectable title like Miss, Mrs. or Ms. Whatever women say their name is, call them by that name. Do not presume it’s OK to use a nickname.

Women do not want to be overlooked by the sales advisor – even when they say that are “just looking.”

This gives them the confidence to proceed with this same dealership when they purchase.

2. Answer Every Question with Respect Women shoppers are generally more apprehensive when buying a new car as compared to men – in fact, one-third report that they walk into the dealership this way. You may find that women even ask more questions because of this.

Sales advisors should be respectful when answering such queries. They should listen to what is being said and carefully try to dissipate any concerns. Remaining patient is the key that increases the chance of converting women car browsers from doubtful to assured ones who will be more than ready to buy a car.

3. Build Trust with Female Clients Being transparent and honest in dealings is the perfect way to earn respect and build rapport with women. If they get even a slight hint that the sales advisors are trying to dupe them, they will look elsewhere – they know there are plenty of options and dealerships from which to choose. It is crucial for sales advisors to make their statements clear and unambiguous and remain fully transparent.

5. Don’t Ignore Their Concerns Remember, you are not in the car business; you are really in the “human interaction” business. Be proactive and attempt to resolve every concern. It is extremely important that the salesperson doesn’t ignore women’s feelings and apprehensions regarding their car buying decision. If ignored or stepped over, the potential customer may feel disempowered and inadequate. Neither of these responses creates a powerful long-term relationship.

6. Treat Them with Kindness and Gratitude Kindness and gratitude create a lasting impression with women – it has them feel appreciated and valued as a customer. It is important to craft a special “Thank You for choosing us” message for them as they enter and exit the premises. Using words of gratitude and kindness can improve their mood and increase their chances of entering into a long-term business relationship with the dealership.

Properly training your sales team to treat women clients with respect will grow confidence and trust. This alone will impact and close more successful deals resulting in increased sales and more long-term customer loyalty.

CBT

Anne Fleming President of Women-Drivers.com

Thinking of

MAKING A CHANGE? POST. SEARCH. CONNECT. SUCCEED. Whether you’re a dealer looking for a new General Manager to run your store or a General Manager looking for a new store to run for a dealer, CBTCARJOBS.com has the most comprehensive listing of available positions and candidates in the retail automotive industry.

We have thousands of positions in all areas of the dealership including General Manager, General Sales Manager, Fixed Ops Manager, Service Manager, Parts Manager, Counter Personnel, Salespeople, F & I Managers, BDC Managers, Internet Managers, Comptrollers, Tag and Title Specialists, and much more.

VISIT US TODAY

GRANT CARDONE

JOE VERDE

CBTCARJOBS.COM

MARK TEWART

JEFF COWAN

ACCESS OVER 1,000 AUTOMOTIVE JOBS

Tune in every Saturday morning Saturday Morning Sales Meeting airs every Saturday featuring the biggest names in automotive sales training. There is no better way to start your Saturday Sales Meeting! Gather your sales team and tune in each Saturday for a great start to your weekend and have the best Saturday ever!

ANDERSON

DAVE

DAVID LEWIS

JEFF HAVENS

JACK DALY

DAVID KAIN

CORY MOSLEY

ROB ‘WALDO’ WALDMAN

RICHARD KEENEY

‘GET UP OFFA THAT THING!’

THE BENEFITS OF STANDING FOR BETTER HEALTH, PHYSIQUE AND A LONGER LIFE

By Scott Patterson

A

s a society, we sit too much. Our bodies should be capable of great feats of strength, endurance and coordination but because of our occupations, we sit at desks all day. Then when we’re done sitting at work, we go home and sit on the couch. This is a quick route to shortness of breath and knee pain after walking to the fridge. As I’m sure you can imagine, this lifestyle comes with great detriment to your movement and health, and is a big part of the reason that you just bought a new larger belt.

Chairs are mostly made for aesthetics and not function, meaning that most chairs put your spine in a pretty rough position. When we spend too much time in this position, we get comfortable there and your body defaults to it – and your posture is compromised. This leads to poor movement patterns and/or pain that could manifest in the lower back, neck, shoulders, etc. Not to mention you look like a walking question mark. Try to avoid this. A decent option would be finding an ergonomic desk chair and walking around for a few minutes every hour. A better option would be looking into a stand-up desk.

Studies have correlated the amount of time we spend standing with our testosterone levels.

This has huge implications on both men’s and women’s physiques.

High testosterone levels help us to build muscle, burn fat, gain strength and recover from exercise. It also improves mood, sex drive and energy levels. Overall it’s a pretty useful hormone.

Standing more decreases overall mortality rate. In other words, it could save your life. Prolonged periods of sitting impair our ability to regulate blood glucose, meaning it could start the trend toward diabetes. Studies have also drawn conclusions linking sitting to both heart disease and cancer.

Now that you see the benefits of standing more, it’s time for some behavior change. Switching straight to a stand-up desk tomorrow and never looking back is possible, but would likely be very difficult, so we need to take small steps.

Step 1: Be Conscious. Keep track of how much time you sit at work.

Step 2: Start a Habit. Decrease your sitting time slowly by taking periodic walks during your day.

Step 3: Consider switching to a stand-up desk.

So if you’re interested in moving better, looking better and living longer, then make a change. Start by ungluing your backside from your comfy chair. Or as James Brown would say, “Get up offa that thing!” CBT

Scott Patterson Personal trainer

36

CBTNews.com

CAR BIZ TODAY September

DE-STRESS

THE DEALERSHIP

S

tudy after study reveals that stress is a major concern for many American employers and their employees.

According to a study by Northwestern National Life, 25 percent of employees view their jobs as the No. 1 stressor in their lives. Another study showed that stress at work is more strongly associated with health complaints than are any other life stressor – even more than financial or family problems. Symptoms of stress – absenteeism, tardiness and turnover – undoubtedly have a negative impact on a company’s bottom line.

Signs that you or your employees might be suffering from stress are: • Headache • Sleep disturbances • Difficulty in concentrating • Short temper • Upset stomach • Job dissatisfaction • Low morale A report by the National Institute for Occupational Safety and Health cites tips from “American Psychologist” on how to change the organization to prevent job stress.

• Ensure that the workload is in line with workers’ capabilities and resources.

•

Design jobs to provide meaning, stimulation and opportunities for workers to use their skills.

•

Clearly define workers’ roles and responsibilities.

•

Give workers opportunities to participate in decisions and actions affecting their jobs.

•

Improve communications to reduce uncertainty about career development and future employment prospects.

•

Provide opportunities for social interaction among workers.

•

Establish work schedules that are compatible with demands and responsibilities outside the job.

To read the article, go to cdc.gov/niosh/docs/99-101.

I Y F I Y F

What Your Fun Car Says About You “Chief Executive” magazine and Edmunds.com recently published the “Five Best Fun Cars for CEOs” and “what it says about the driver.” The results:

Millennials ‘Need’ to be Connected

Experian Marketing Services, a global provider of integrated consumer insights, targeting, data quality and crosschannel marketing, published a new report on the demographics, behaviors and attitudes of millennial adults ages 18 to 34. According to the report, millennials are the most digitally connected generation, with 77 percent of adult millennials owning a smartphone and the average owner spending about 14.5 hours a week using his or her phone.

In fact, millennials spend so much time on their smartphones that they account for 41 percent of the total time that Americans spend using smartphones, despite making up just 29 percent of the population. Here is how their usage compares to other generations: Millennials

Generation X

Boomers

Silent Generation

Talk

92%

92%

92%

91%

Text

91%

92%

92%

94%

Mobile Browsing

89%

90%

87%

84%

Email

82%

83%

80%

83%

Social Networking

74%

69%

67%

58%

Download Apps

63%

63%

60%

65%

Camera

54%

50%

50%

56%

Play Games

52%

49%

50%

53%

Watch Video

46%

39%

32%

33%

GPS

43%

40%

34%

35%

Listen to Music

35%

30%

27%

31%

IM/Chat

27%

26%

23%

19%

Read News

18%

17%

15%

13%

Jaguar F Type V8 S

You love stylish performance

Porsche 911 Turbo S

You seek the ultimate

Audi RS 7

You demand excellence

BMW i8

Youʼre a Renaissance CEO, appreciating style, performance and cutting-edge technology

Chevrolet Corvette Stingray

You are serious about torque

Gen Y Buying More Cars than Gen X Gen Y consumers are now accounting for a larger percentage of U.S. new-vehicle retail sales than their older Gen X counterparts, according to an analysis by J.D. Power.

Year to date in 2014, Gen Y – born 1977-1994 – has accounted for 26 percent of new-vehicle retail sales, putting sales to that generational group ahead of those to Gen X (born 1965-1976) for the first time. Gen X buyers purchased 24 percent of new-vehicles in the same period, according to data collected by the Power Information Network® (PIN) from J.D. Power.

Boomers – born 1946-1964 – are still the largest group of buyers of new vehicles, accounting for 38 percent of new vehicles sold during the first half of the year.

38

First Paved Road in U.S.

Is Your Website Up to Par?

Long before there were automobiles in the U.S., good roads were needed to get farm produce to market and to allow people to go visiting and shopping without battling mud. According to the U.S. Census Bureau, an American professor who had emigrated from Belgium — Edward de Smedt — invented an asphalt mix, which could be applied in sheets to make a smooth surface. His first trial occurred in 1870 on William Street in Newark, N.J. Even though de Smedt’s technique worked well there were only 154 miles of paved highway in the entire country 34 years later. Today, there are over a million miles of urban streets, and more than 61,000 miles of interstate roads and other freeways.

The No. 1 online destination for women shoppers is your website? According to a report by Women-Drivers.com, dealer’s websites are the top online source women visit when in the car buying funnel. Yet, one-third of women report that their dealer’s website was not helpful.

CBTNews.com

CAR BIZ TODAY September

PIN data shows that Gen Y customers tend to favor smaller vehicles, with compact/small vehicle segments accounting for nearly half of all Gen Y purchases.

Compact car is the most popular segment for Gen Y, with 20 percent of every vehicle sold to the group coming from this segment. In contrast, Gen X favors midsize vehicles. For Gen X, compact SUV is the most popular segment, accounting for 15 percent of sales to this generation.

ASK THE

PROS Frank C., Plymouth , Ind.

At CBT News, we are fortunate to work with some of the best trainers in the industry.

Whether it’s information on sales, service, F&I, marketing, management or fixed ops, our contributors are the go-to professionals for reliable, relevant advice for dealership personnel.

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.

Ben R., Colorado Springs, Colo.

Q. I am a Ford dealer in a small Midwest town. Do I really need Twitter and a Facebook page, and if so, why?

Q. When should we ask our service customers to give us a review, and how can we be assured they will give us a good review?

A. The short answer is yes. Yes for these four main reasons:

A. The best way to get a good survey is to do what I instruct in my training: Tell the customer what is going to happen, or what might happen, before it happens and they will be completely satisfied.

Customers do not like surprises, so from the first point of contact, whether that be on the telephone or face-to-face, tell them all the facts. As far as when to ask for the survey, I feel the last point of contact during the visit is best.

There is never a guarantee that any survey will be a great one, but providing the best service you can and preparing your customer for what will take place during their visit will get you the best results.

1) Eighty-four percent of automotive shoppers are on Facebook. Thirty-eight percent of consumers will consult social media in making their next car purchase. Facebook content supported with Facebook ads (when done right) drives traffic, leads and sales.

2) SEO. Quality content, like your blog, syndicated on social media increases online authority and moves you into the top positions on search. Quality content means answering the questions your customers are asking and telling the story of why people buy from you.

3) Semantic Search. The most qualified and successful searches are driven by conversation. Where do you have those conversations?

Social media.

4) Social Selling. The top dealership salespeople have already created their own online presence and their own referral network. Your customer is online, your products are online, why aren't your salespeople online?

Jeff P., Alburquerque, N.M. Q. I sell new cars at a dealership that sells about 300 new and used cars a month. Often when I follow up with my unsold prospects they tell me they bought a used car instead of a new car. How can I show and sell more used cars to those shoppers?

A. Every new-car buyer should be offered a pre-owned as a way to save money before even landing on the new car. You are waiting to switch the customer too late, and it puts you in the wrong position with the customer.

The buyer leaves feeling like they wasted your time only to find out they don’t think they can afford a new car.

After confirming with the customer – “I will get you everything you want on the new car” ask “Any chance you folks would consider a vehicle just like you described with very low mileage that would save you 3 or 4 thousand dollars and 100 dollars a month?”

KATHI KRUSE

JEFF COWAN

GRANT CARDONE

PRESIDENT OF KRUSE CONTROL INC.

PRESIDENT OF JEFF COWAN’S PRO TALK INC.

ENTREPRENEUR AND NEW YORK TIMES BEST-SELLING AUTHOR September CAR BIZ TODAY

CBTNews.com

39

Experience NCM® OnDemand Virtual Training

Increased Productivity and Higher Profits at Your Fingertips It’s a fact that consistent training translates into increased team productivity and higher dealership profits. With NCM OnDemand interactive virtual training, your entire dealership will benefit from: Proven training techniques delivered by respected industry pros State-of-the-art reporting, testing and accountability features 24/7 access for training at work, at home or on the go Take your free Test Drive TODAY and experience everything NCM OnDemand has to offer.

Then take advantage of free activation* - $599 value!

Get started now at ncm20.com/trial or to learn more, call 844.639.8741. *For free activation, use promo code CBTSEPT. Offer expires 10/31/14.

“The variety of training, the variety of topics – and the ability to access those topics quickly has just been phenomenal.”

– Jason Reeves, Sales Training Manager, Mercedes-Benz of Buckhead