Dealer Business Journal October 2014

It’s more than a question, it’s a philosophy for understanding how a sale and its financing are related.

When you work them together, everyone wins.

Page 18

ALSO INSIDE: Data Driven Dealerships Can Sell More Cars PAGE 24 Service BDC’s Build Relationships, Retention and Revenue PAGE 28 ...Your Success Is Our Business

October 2014 DEALER BUSINESS JOURNAL | 1

888

599

1720

Oering the latest technology for accepting payments: Pay by Phone and Text to Pay, our merchants now have the ability to accept payments 24/7!

2 | DEALER BUSINESS JOURNAL October 2014

DealerBusinessJournal.com

IN EVERY ISSUE

Contents Volume 11, Issue 10

4 5 6 18 35 36

n, it’s a a questio ding how a re than erstan It’s mo ted. y for und are rela philosophits financing er, togeth sale and work them you When s. ne win everyo

Page 18

October 2014

ALSO

INSIDE:

l

s Can Sel

lership

ven Dea Data Dri s More Car PAGE 24

ips,

nsh ld Relatio BDC’s Bui enue Service Rev ion and Retent PAGE 28

RNAL |

INESS JOU

October

LER BUS 2014 DEA

CORNER OFFICE UPCOMING EVENTS BHPH BOOT CAMP COVER STORY CLASSIFIED ADS INDUSTRY NEWS

1

LEGAL & LEGISLATIVE

BUSINESS OPERATIONS

SALES & SERVICE

Legal Opinion 8 A Million Reasons to Behave With the threat of overwhelming punitive damages from a jury trial, it’s more important than ever to do things the right way.

Business Basics 14 Inventory Management—Be Proactive This Year Fall is the perfect time to get ahead of the game, and other dealers, by securing inventory for tax season now.

By David J. Wiggins

Targeting Campaigns 24 Data Driven Dealerships Can Sell More Vehicles Big data isn’t just a concept any more, it’s a reality. And, it can sell more cars for you if you know how to use it.

Product Innovations 16 AutoTrader.com Tackles Transparency for Buy HerePay Hre Dealers With New Solution An exciting new tool Buy Here-Pay Here dealers can use to connect with potential customers.

Customer Relations 28 Service BDC’s Build Relationships, Retention and Revenue At delivery, the sale process ends and the service process begins. How solid is your sold follow up?

Stop Loss 20 A Brave New World In the digital age it is easier than ever for dealers and staff to make a serious mistake.

Protect yourself with proper training and insurance.

By John Krivacsy

Female Perspective 34 Are You Trained on Assisting Women Car Buyers?

Women car buyers are a group that can’t be ignored. If you aren’t sure how to capture them, the answer may be in better training.

By Tom Hudson

General Counsel 10 Ten Things to Know About Bank Financing Agreements Before you negotiate your next financing agreement, make sure you know what it should and shouldn’t include.

By Debra Dawn

LEADERSHIP & TRAINING Learn to Lead 12 Reality Rebuttal to “Conventional” Nonsense Don’t make excuses for not reaching your goals. The reality is, you make the choice to be successful or not.

By Dave Anderson

...Your Success Is Our Business

ess Is Our ...Your Succ

Business

ReInsurance 22 Persuasion vs Manipulation Independent dealers get a bad rap in the eyes of the public.

You can help change that.

By Tim Byrd

By Dani Sherrod

By Greg Wells

By Jody DeVere

October 2014 DEALER BUSINESS JOURNAL | 3

LEEDOM GROUP

Corner Office Something Near and Dear to My Heart . . .

DEALER BUSINESS JOURNAL

A L E E D O M G R O U P P U B L I C AT I O N

Dealer Business Journal 3700 S. Tamiami Trail, Sarasota, FL 34239 Ph: 800.966.8733 | Fax: 941.371.2874 Executive Publisher

Christopher M. Leedom | chris@twentygroups.com Contributing Writers

T

his month I have been asked to write about a topic that is near and dear to my heart. I know, your first guess would be my lovely wife or two children. That is the correct answer with respect to what is near and dear to my heart, however this article addresses a dealer service that I have loved for over 15 years. That is the topic of dealer education and training.

When I first became a Professional Twenty Group Moderator in 1995, I was amazed at how little training and education was specifically focused toward the independent, non-franchised dealer. To me the Twenty Group process was, and still is, one of the best forums for dealer-owners to further their knowledge base and learn more about the business. Since 1995 I have had a chance to moderate over 700 Twenty Group meetings and I will tell you this is still the best way for a dealer to constantly work on their business.

I just finished moderating three Twenty Group meetings over the past few weeks. Some of the dealer-members have been in their group for fifteen or more years. They utilize the Twenty Group process as a way to work on their business versus working in the business. My good friend Joe McCloskey, the current NIADA Quality Dealer of the Year, pointed out he has just attended his 58th meeting since 1996. Wow!

I see members all the time leave meetings with pages of notes. Much of this comes from working and developing close relationships with other successful dealers. Success breeds success and I have witnessed that quite often with dealers that participate in Dealer Twenty Groups. When I started the first Leedom Group’s Twenty Group program in 1995 there were essentially no Twenty Groups dedicated exclusively for independent dealers. Since then we have created over 30 groups for everything from BHPH to high-line to special finance to finance company.

Each group is led by one of our Professional Twenty Group Moderators whose only objective is to help each member of the group succeed and be best in class.

If you have never participated in a Dealer Twenty Group I want to personally invite you to an upcoming meeting. You can visit a group, see if you “fit” and then decide to join. Dealer after dealer has come into the meeting thinking they were in top shape only to leave realizing there is always room for improvement. We take pride in the fact that 8 out of 10 of

4 | DEALER BUSINESS JOURNAL October 2014

Dave Anderson | dave@learntolead.com David Brotherton | davidb@leedomgroup.com Debra Dawn | debra@leedomgroup.com Tom Hudson | thudson@hudco.com Guest Columnists

Tim Byrd| DealerRE.com Jody DeVere | jdevere@askpatty.com John Krivacsy | jkrivacsy@armonline.com Dani Sherrod| dani@autoshopper.com Christy Taylor | Dealer Business Journal Greg Wells | AllCall Automotive Contact Center David J. Wiggins | CliftonLarsonAllen

FOR QUESTIONS REGARDING SUBSCRIPTIONS CALL 800.966.8733

or subscribe online at DealerBusinessJournal.com ADVERTISING INQUIRIES CALL 941.371.7999 OR SALES@DEALERBUSINESSJOURNAL.COM

DISCLAIMER: The information included in this publication is obtained from sources believed reliable and has been produced with reasonable care in production and editing. It is not intended to be legal, accounting, tax, technical or other professional advice. Readers are advised to consult a professional for application in their particular situation. Copyright 2013 Leedom and Associates, LLC. All Rights Reserved. Content may not be photocopied, reproduced or redistributed without written permission. Dealer Business Journal is a publication of Leedom and Associates, LLC. POSTMASTER: Send change of address form to Dealer Business Journal, 3700 S Tamiami Trail, Sarasota, FL 34239

DealerBusinessJournal.com

the past NIADA Quality Dealer Award recipients have at one time been members of our Twenty Groups.

Also, speaking of dealer education, do not miss our upcoming Credit and Collections Conference in Dallas, Texas from December 8-10th, 2014. This is the only conference dedicated to just credit, collections and underwriting for BHPH. Each year our dealer attendees come up to me and say “wow, I wish I would have brought more of my staff. The information has been incredible.” We offer significant discounts for dealers that bring multiple managers because we want your team and your operation to benefit as much as possible. I love to hear success stories from dealers that attend. Call Meredith McNellis at 800.966.8733 to sign up today.

Finally, stop and ask yourself what you have done to learn a little more, get a little better, or operate more efficiently. This issue should give you some ideas. I hope you enjoy it. Have a great month and MAKE IT HAPPEN!

Upcoming Events DECEMBER Dec. 8-10, 2014 Credit and Collections Conference Dallas, TX

For Dealers Principals, General Managers, Collections Managers, Collectors, Skip Tracers

JANUARY Jan. 6, 2015

For Buy Here - Pay Here Dealers, General Managers, Sales and Finance Managers

Jan. 7, 2015

Buy Here - Pay Here Managers Boot Camp, Orlando, FL

For Buy Here - Pay Here Dealers, General Managers, Sales and Finance Managers

Jan. 8, 2015

Chris Leedom

Buy Here - Pay Here Sales Training Boot Camp, Orlando, FL

Buy Here - Pay Here Collections Boot Camp, Orlando, FL

For Collection Managers, Collectors and Buy Here - Pay Here Dealers

Executive Publisher

SPARTAN FINANCIAL PARTNERS. BET TER THAN A BANK for BHPH.

Are You Leveraging Your BHPH Portfolio for Cash?

Lines of Credit • Immediate Postitive Cash Flow • Capital for Replacement Inventory • Dealer Retains Servicing and Collections Spartan Line of Credit Clients Increase Their Portfolio an Average of 165% !

Bulk Purchases • More Cash Up Front • Quick Funding • No Seasoning Requirements

Honest, Straightforward Pricing…

No Waiting for Bonus Pools, No Performance Fees

Nationwide Lines of Credit and Bulk Purchasing for: Buy Here Pay Here | Indirect Lenders | Loan Originators | Credit Unions

Interested in Point of Sale Financing?

Call our American Credit Acceptance team today!

(866)202-6912

...Your Success Is Our Business

Spartan-Partners.com October 2014 DEALER BUSINESS JOURNAL | 5

LEEDOM GROUP

BHPH Boot Camp

By David Brotherton

Laying Down the Ground Rules

I

think everyone can agree on the importance of collections to the BHPH business model. In fact, one of the fastest ways to bankruptcy for a dealer is to finance more and more customers that do not pay as agreed.

BHPH has many moving parts and it is critical to start off the relationship with our customer properly.

It takes more than good people and good processes to make a successful collections team. It also takes solid underwriting, consistent buying and service policies, and a commitment to education in the sales process. Every step in the BHPH process is supposed to support or reinforce your collections efforts.

system to support timely repayment are not going to magically start paying you on time just because you decided to finance their vehicle purchase! Education must be part of the process.

Customers are thinking about finally getting a vehicle, not the fine-print in sub-paragraph C of Section 5 of the Retail Installment Contract and Security Agreement that they sign. For the BHPH model to work, we have to understand that there is a tendency for a customer to sign first and ask questions later. Simply having the paperwork signed correctly without additional education for the customer can create problems for your collections department.

We have an obligation to prevent this by carefully explaining the responsibilities and duties of each party to the contract and clearly laying out expectations in the closing. Our comfort level with our process leads For the BHPH model to work, we have to us to make assumptions regarding the customer’s understand that there is a tendency for a customer degree of understanding and to sign first and ask questions later. Simply having financial literacy. Have you the paperwork signed correctly without additional ever had a customer come education for the customer can create problems for back and complain when they find out that their $175 your collections department. payment isn’t due monthly but bi-weekly? What about We have to buy and recondition first-time buyers? It cannot be financial mismanagement and poor our inventory properly, ask the assumed that any customer fully credit history. We know all of these right questions in the sales and understands the contract as written. things about our customer yet our underwriting process so that we In fact, it must be assumed that collections teams so often expect can make an informed financing you will need to explain everything our customers to feel a moral decision. We have to structure a in detail. Closings should, in fact, obligation to pay and understand deal with the highest probability be somewhat uncomfortable. The the contract that they signed. of repayment within our lending customer needs to know what People who have proven model. We have to support the happens if they miss a payment and through their past actions that they collections team with solid service should be able to tell you when their require a stronger, more-structured after the sale and we have to educate the customer as to the nature and terms of the contract they are signing — in other words, closing.

Closing is much more than making sure your paperwork is signed in the right places. It is your first (and, possibly, most important) opportunity to lay out expectations and responsibilities for the borrower and the finance company.

Customers should understand when their payments are due, where/how they can make them, who to call for service, how their warranty and/or service agreement works. They need to know what insurance coverage is required and, most importantly, that you expect payments to be made on or before the due date.

Think about the relationship we are entering. We have decided to do business with a customer base that has exhibited varying degrees of job and residence instability,

6 | DEALER BUSINESS JOURNAL October 2014

DealerBusinessJournal.com

FIX NASTY

E

...Your Success Is Our Business

AN C

David Brotherton is a consultant and Twenty Group moderator with the Leedom Group Contact him at davidb@leedomgroup.com

ASSUR IT Y O .E .MR. COLO H MA T C UA RANTE

G

A proper closing must be practiced and trained on regularly. Every closing should be done in the same manner with documents in the same order. Training your closers to this level is important and it requires repetition to be and remain effective. Try training your closers as though you would record every closing. Some organizations actually record their closings, but I am not advocating you do this. The standard of performance necessary to actually provide you the safety you seek is difficult to achieve and harder to maintain. A recording of a poorly done closing does not provide you with safety or security, however, it can, unfortunately, provide you something very different. It is called “Plaintiff ’s Exhibit A.” The most valuable asset a dealer has is the receivable base they create. The collections team has to maintain a multi-year relationship with the customer base and this relationship is often spoiled early in the deal. The frustrating part is that many of these early collection issues could have been avoided with laying down the ground rules effectively via a strong and consistent closing process. By having a quick and/or sloppy closing, we often exacerbate the problem.

See how easy it is to restore that like-new finish in just an afternoon. Watch our online how-to videos to show you how.

E

Take the time to create a systematic closing process where you are: • Approaching the paperwork in the same order, every time.

• Each page is summarized accurately for the customer.

• Required disclosures are made verbally and in writing in accordance with state and federal law.

• Repayment terms are accurately and completely disclosed.

• Definition and consequences of default.

• Insurance requirements and consequences of lapses in coverage.

• Warranty and/or service agreement terms.

• The customer receives copies of their signed paperwork.

QU AL

payments are due before they take delivery.

SCRAPES FOR LITTLE SCRATCH

Paint pens >>> ½ oz and 2 oz bottles >>> 12 oz spray cans Ready-to-spray pints, quarts and gallons

Automotivetouchup.com

888-710-5192

October 2014 DEALER BUSINESS JOURNAL | 7

LEGAL & LEGISLATIVE

Legal Opinion

By Tom Hudson

A Million Reasons to Behave

S

ome “counts” (“causes of action,” in lawyer-speak) in a lawsuit permit a plaintiff to recover only so-called “actual damages,” or the amount that the plaintiff can demonstrate she is out-of-pocket as a result of the defendant’s actions. Claims for breach of contract, for example, typically permit a plaintiff to recover only actual damages.

Other claims, however, carry the possibility of so-called “punitive damages,” or damages that are awarded to deter the defendant and others from engaging in bad behavior. Tort claims, such as fraud, are examples.

Fraud claims, and other claims that can support punitive damages, pose a significant risk for car dealers engaging in practices that a jury might find particularly objectionable.

Here’s what I mean.

Lillian Lewellen, a 77-year-old widow, bought a car from Chad Franklin National Auto Sales North, LLC based on an ad for $49-per-month payment plans.

Lewellen’s monthly payment was $387, to an outside bank, but National Auto employees told her she would only have to pay $49 per month for five years and National Auto would send her a check for the difference. The price charged included additional

fees that the salesperson did not discuss with Lewellen. A National Auto employee initially recorded Lewellen’s monthly income as $920, the correct amount at that time. Another application document completed by a National Auto employee listed Lewellen’s monthly income as $18,000.

National Auto subsequently sent Lewellen one check for $3,287, but no further payments. After spending that money, Lewellen defaulted on her car payments.

Predictably, the bank repossessed the car.

Lewellen sued National Auto and its owner, Chad Franklin, for fraudulent misrepresentation and unlawful merchandising practices under the Missouri Merchandising Practice Act. A jury awarded Lewellen actual damages of $25,000 and punitive damages of $1 million against Franklin and National Auto for each claim.

Ouch.

A trial court judge can in some circumstances reduce the amount of damages awarded by a jury, and thie trial judge reduced the punitive damages award against Franklin and National Auto to $500,000 and $539,050, respectively, pursuant to Mo. Rev. Stat. § 510.265. That section provides: “No award of punitive damages against any defendant shall exceed the greater of: (1) Five hundred thousand dollars; or (2) Five times the net amount of the judgment awarded to the plaintiff against the defendant.”

8 | DEALER BUSINESS JOURNAL October 2014

Lewellen appealed to the Supreme Court of Missouri, arguing that her constitutional right to trial by jury was violated when the trial court reduced the punitive damages award for her fraudulent misrepresentation claim against Franklin. Franklin and National Auto cross-appealed, arguing that the amount of the punitive damages violated due process (essentially, that the damages were so high as to be unfair).

The high court stated that any change in the right to a jury determination of damages as it existed when the Missouri Constitution was adopted in 1820 is unconstitutional. As such, the high court determined that the statutory cap on punitive damages unconstitutionally infringed upon Lewellen’s right to a trial by jury protected by the Missouri Constitution. The high court vacated the trial court’s reduction of punitive damages and awarded Lewellen $1 million in punitive damages against Franklin for fraudulent misrepresentation.

The high court also rejected Franklin and National Auto’s due process argument on crossappeal. The high court stated that in determining if a punitive damages award comports with due process, courts consider three guideposts: the reprehensibility of the defendant’s misconduct; the disparity between the harm and the punitive damages award; and the difference between the DealerBusinessJournal.com

punitive damages award and penalties authorized or imposed in comparable cases.

The high court found that Franklin and National Auto targeted financially vulnerable, low-income persons, and that the defendants made consistent misrepresentations to consumers.

The high court also found that a jury has discretion to determine that, when a particularly egregious act has resulted in only a small amount of economic damages, the usual single-digit ratio between punitive damages and compensatory damages may not be an appropriate measure of the limits of due process. While the high court acknowledged that the punitive penalties were larger than penalties authorized under the MMPA, the court ultimately determined that the penalties did not violate Franklin and National Auto’s due process rights.

So, the next time you find folks in your dealership behaving badly, you can tell them that you know a million reasons why they shouldn’t.

Lewellen v. Franklin, 2014 Mo. LEXIS 211 (Mo. September 9, 2014)

The high court stated that in determining if a punitive damages award comports with due process, courts consider three guideposts: the reprehensibility of the defendant’s misconduct; the disparity between the harm and the punitive damages award; and the difference between the punitive damages award and penalties authorized and imposed in comparable cases.

Tom Hudson, Esq. (tbhudson@hudco. com) is the author of several compliancerelated books that are available online at www.counselorlibrary.com. He is also the publisher of Spot Delivery®, a monthly legal newsletter for auto dealers, and the Editor in Chief of CARLAW®. Reach him by phone at (410) 865-5411 or visit www. counselorlibrary.com. ...Your Success Is Our Business

October 2014 DEALER BUSINESS JOURNAL | 9

LEGAL & LEGISLATIVE

General Counsel

By Debra Dawn

10 Things To Know About Bank Financing Agreements

B

efore you negotiate your next financing agreement, make sure you know what it should, and shouldn’t include.

1

Watch Out For The Definition of “Eligible Contracts Receivable.”

Frequently, bank loan agreements will state that contracts 31 or more days past due are ineligible for financing. In my experience in the BHPH world, 45 days is more realistic. Furthermore, the bank may introduce language stating contracts subject to “counterclaims, offsets or discounts” are ineligible. This language must be changed insofar as every contract receivable is subject to a potential counterclaim (usually because the vehicle did not perform as the customer would have liked).

sole discretion of the bank and ask for modifications.

a loan agreement which requires more aggressive numbers.

3

5

Regulatory Changes.

Provisions in loan agreements are frequently drafted to allow the bank to charge the dealership additional money if there are regulatory changes provided that the bank “reasonably” determines that the cost of the loan is increased by an amount deemed to be material. This risk of loss should be borne by the bank (who is receiving commitment fees and interest), not the dealership.

4

Charge Off Percentages.

Know your quarterly, semiannual and annual charge off percentages and DO NOT sign

2

Do Not Allow “Sole Discretion” Language. Banks like to have the ability to change interest rates, contract eligibility and even default provisions once they have been negotiated. Watch out for clauses that allow actions in the

10 | DEALER BUSINESS JOURNAL October 2014

Audits. All loan agreements enable the financing bank to conduct audits. Determine the maximum number of annual audit you are willing to entertain and include in the contract who is responsible for the costs connected to those audits. If the dealership is accountable for audit costs, set a maximum dollar amount.

6

Defaults. Obviously, default language is key for both the bank and the dealership.

However, every default clause (i.e. failure to pay bills on time) should include the word “material” to insure that the bank does not use a technicality to put the dealership in default in order to either call in the credit line or exercise a default rate of interest.

7

Cross Defaults.

If you have more than one line of credit with the same financial institution, they will more than likely try to insert cross default language. This means that you will be in default of all your credit facilities if you default on any one of them. My suggestion is to use separate banks DealerBusinessJournal.com

for separate lines if at all possible insofar as negotiating release of cross defaults is extremely difficult.

8

Setoffs. A bank will frequently request the authority to direct the disposition of funds from all individual depository accounts (with the exception of those accounts used exclusively for payroll) held at their institution. Although the Bank may agree not to exercise these rights unless and until there is a default, I believe this is an egregious provision. I would suggest alternative language where the dealership agrees not to withdraw funds from these accounts in the event there is actually a default (or locating your deposition accounts at separate financial institutions).

9

Choice of Law and Venue Provisions. These clauses require that all disputes be brought in a certain city and state. This language has practical implications insofar as you will be subject to the jurisdiction of a state other than your own and will have physically go to that state to initiate or defend litigation. This can prove to be both costly and time consuming.

10

Personal Guarantees. My first comment is to avoid any personal guarantee of a corporate debt if at all possible. My second suggestion is to plan ahead of time and insulate assets (especially real estate) in an irrevocable trust where there is an independent trustee (not you or your spouse). With regard to the language of a personal guarantee, do not waive your rights against the financing institution with respect to the administration of the facilities in advance.

Guarantee language is extremely broad and you must have the right to legal redress.

Debra Dawn is Leedom Group’s General Counsel and Compliance Director Debra Dawn has formed AUTOLAW Group to assist dealers in all facets of dealership compliance. debra@leedomgroup.com ...Your Success Is Our Business

Our electronic payment acceptance platform offers dealers the ability to accept both single and recurring payments. Your customers can choose to make payments directly from their:

• Checkings Account • Savings Account • Credit Card

• Debit Card • Pre-Paid Card

ADDITIONAL TECHNOLOGIES INCLUDE:

TEXT TO PAY Paymaxx Pro has developed a system to automatically send text reminders and enable the customer to respond via text to make their payment.

PAY BY PHONE Using our automated call-in system, your business may accept payments via phone 24/7.

We offer numerous customizable features including script prompts, language choices, and company branding.

PAYMAXX PAY Paymaxx Pay provides your customers the convenience of paying safely and securely online through our website; www.paymaxxpro.com

Visit us online at www.paymaxxpro.com, call 1-888-599-1720, or email us at Savings@PaymaxxPro.com

October 2014 DEALER BUSINESS JOURNAL | 11

LEADERSHIP & TRAINING

Learn to Lead

By Dave Anderson

Reality Rebuttal to “Conventional” Nonsense

O

ur business is filled with common complaints, cop outs, clichés, conventional wisdom, and excuses that will keep you average if you buy into them.

As you read over the following list determine how many you have heard, said, or bought into.

Then consider the reality rebuttal, offered with the intent to create a healthier perspective on each issue.

There’s a shortage of talented people in my area.

Reality rebuttal: It’s unlikely the Creator got ticked off at your area and stopped putting talented people there. In reality, the most talented people already have jobs, but you have no strategy for recruiting passive job candidates into your dealership. Get one.

We can‘t fire him; we have no one to replace him with.

Reality rebuttal: It’s better to be strategically short-staffed than foolishly filled up. And, if you had an ongoing recruiting discipline you’d have someone in the pipeline.

He’s loyal; he’s been here a long time.

Reality rebuttal: Loyalty is defined as “faithfulness to one’s duties or obligations”; the definition says nothing about being somewhere a long time. That would be tenure or seniority. At the end of the day, loyalty is performance.

I don’t have time to read books on management.

Reality rebuttal: You have time for golf games, fantasy football and video games, but no time to improve yourself? If something’s important to you you’ll find a way; if it’s not you’ll find an excuse. At the end of the day, if you don’t grow, you go. Keep your resume current.

I’ve been in the business 30 years.

Why should I have to attend training?

Reality rebuttal: Just because you show, doesn’t mean you grow.

Growth isn’t automatic, and it is not a synonym of experience. Since intellectual capital depreciates, keep training or lose your relevance.

It’s the manufacturer’s fault our sales are down.

Reality rebuttal: Quit whining and focus on the many things you can control each day but don’t: your attitude, work ethic, discipline, where you spend your time, with whom you spend it, whether you’re going to train, recruit, hold people accountable, and the like. You’re not a victim of your circumstances; you’re a product of your choices.

It’s the weather’s fault.

Reality rebuttal: Refer to the previous answer.

It’s the economy’s fault.

Reality rebuttal: Refer to the previous answer.

It’s my boss’s fault.

Reality rebuttal: Refer to the previous answer.

12 | DEALER BUSINESS JOURNAL October 2014

It’s the competition’s fault.

Reality rebuttal: Refer to the previous answer.

It’s another department’s fault.

Reality rebuttal: Refer to the previous answer.

I’ve always been this way (undisciplined). It’s just the way I am.

Reality rebuttal: Your birth certificate doesn’t say, “undisciplined”.

Being undisciplined is a choice.

When you’re ready to give up what you want now for what you want most, you’ll develop discipline.

I’ve always been this way (negative). It’s just the way I am.

Reality rebuttal: Your birth certificate doesn’t say “pessimist” either. Attitude is a choice.

My boss doesn’t motivate me.

Reality rebuttal: He shouldn’t have to. It’s exhausting to, hug you, burp you, coddle you, and wind you up every day. The best in any business create more motivation from the inside-out, with a compelling purpose; anything external pats on the back they get is appreciated; but not necessary for them to get or stay motivated.

The people working for me are weak; they’re idiots.

Reality rebuttal: Then you’re the chief, weak idiot. You don’t attract into your department what you want; you attract what you are. Your people are YOUR report card.

Threatening with consequences for non-performance is harsh.

DealerBusinessJournal.com

Reality rebuttal: It’s never harsh to tell someone what you want, by when you want it, and what will happen if they don’t deliver. What’s harsh is letting them fail on your leadership watch because you don’t have the guts to do your job, care enough to confront them, and raise their performance.

All customers care about is price.

Reality rebuttal: Until your people learn to differentiate themselves and create great customer experiences, price will always be the issue. Great people delivering “wow” customer experiences makes price less relevant.

He’s lethargic, but I’m working to change that.

He’s negative, but I’m working to change that.

Reality rebuttal: You can alter someone’s mood; you cannot change their prevailing attitude.

There’s no way we’ll miss this forecast.

He has some serious character flaws, but I’m working to change that.

We’re hoping for a big month.

My managers work a ton of hours; there’s no way you can call them complacent.

When my people prove their Reality rebuttal: Complacent is trustworthy, I’ll trust them. defined, calmly content, smugly self-satisfied To change Common complaints, cop outs, cliches, .Your managers people’s can work eighty conventional wisdom and excuses will keep you behaviors, we hours per week raised the bar average if you buy into them. A dose of reality and still be so and created a can provide the healthier perspective you need complacent bolder vision. they don’t to overcome them. train regularly, We prefer recruit proactively or hold others He’s not very talented, but I’m to hire people with a lot of past accountable. Complacency is more working to change that. experience. about what someone puts in the Reality rebuttal: You can develop hours than the hours someone puts talent, but you can’t make someone Maybe, I’ll cover these another in. talented. You can’t put in what was day. For now, evaluating the left out; you can only draw out what twenty-three reality rebuttals listed My managers are fine. I need was left in. should provide at least one or two salesperson training. opportunities to create a healthier Reality rebuttal: If your managers He’s not very driven, but I’m perspective within your dealership. were fine, they’d already be training working to change that.

Dave Anderson is President of your salespeople. Besides, it’s foolish Reality rebuttal: You can’t make LearnToLead which provides in-person to take live eggs, stick them under someone want it; drive is an inside and virtual training to many of the dead chickens and then wonder job. As with talent, remember this: world’s best dealerships. Dave speaks why they don’t hatch. Train your you can help make someone more to dealer groups over 125 times each managers first. of what they are; you can’t make year and has given seminars in 15 them something they’re not. countries. He has spoken at eleven We can’t afford to train.

NADA Conventions and is the author of Reality rebuttal: If you think the Since I’m quickly reaching this twelve books. Follow Dave on Twitter @ cost of training is high, consider the column’s word limit, I’m unable to DaveAnderson100 and visit his website cost of ignorance; it’s staggering— address the remaining seven points at learntolead.com for free articles and videos on sales and leadership. especially at the management level. as I had planned. They are: ...Your Success Is Our Business

October 2014 DEALER BUSINESS JOURNAL | 13

BUSINESS OPERATIONS

Business Basics

By David J. Wiggins

Inventory Management—Be Proactive This Year

B

elieve it or not it’s already fall, which in the buy-here pay-here (BHPH) business means we start gearing up for next year and what will hopefully be a good tax refund opportunity selling season.

We are told by dealers each year that prices of good BHPH vehicles start to climb, while the availability of good cars shrinks, as year-end approaches. Most dealers wait until December or January to purchase their tax refund vehicles for the spring sale period. Unfortunately, most of the rest of the country does the same thing. The result is that auction prices go up and the selection of good vehicles goes down.

The price of waiting Based on our data, prices of BHPH vehicles at auctions ($3,000 - $7,000), generally increase by

five to ten percent or more from December 1 thru March 15. This is due to the onslaught of sub-prime and BHPH dealerships racing to the auction to meet increased customer seasonal demand for vehicles due to purchases resulting 1) from tax refunds, and 2) from more vehicles being purchased when older cars stop running in poor weather. Many BHPH dealers sell one-third to forty percent of their total vehicles from January to March.

Based on these inventory supply realities, dealers would be wise to consider alternative strategies to meet winter sales needs. From now thru November 15th is probably the best time to purchase BHPH vehicles to meet your winter sales needs. Frequently, the supply and

prices of BHPH type vehicles are good right now. This is due to the volume of trade-ins that are being received by new dealerships for 2015 model year vehicle purchases that generally take place in September. Many new vehicle dealerships sell trade-in vehicles at auction, thus the selection and price of these vehicles is attractive for BHPH dealership buyers.

It may make sense for your dealership to purchase virtually all the cars it anticipates needing in the next one or two months. This will allow you to look for vehicles of the right type (SUVs and trucks) that are more desirable to customers at attractive price points. Stocking up on these vehicles will also allow your reconditioning department

By being proactive in making your inventory purchases you will likely see more sales, with higher down payments and lower charge off.

14 | DEALER BUSINESS JOURNAL October 2014

DealerBusinessJournal.com

the time to properly recondition the vehicles in a cost effective manner.

For vehicles that are not of the quality you desire, you may also have a chance to sell these at the best possible auction price during the December thru February months, when prices are the highest.

So how many vehicles should you consider stocking? Here’s a possible approach on a sample dealership Based on this approach, a relatively small dealership should be trying to purchase 200 units over the next month and a half.

Assuming the average cost of the vehicle is $5,000, the dealership will tie up an additional $1,000,000 in inventory for part of the year.

The cost of this inventory at a five percent floor plan rate will be approximately $12,500. This assumes expected sales as outlined above do occur over the periods outlined.

The additional interest cost of $12,500 will be strongly outweighed by the benefits of purchasing the vehicles now. These benefits include: • • • •

Better inventory selection (allowing for more sales at possible higher profits) Lower price of vehicle purchase (when bought in October rather than December thru March) Better reconditioning due to additional time (lower cost and better job) Sale of unsold cars at inflated

...Your Success Is Our Business

•

prices during December thru March More sales due to higher inventory levels

Caveats: funding and lot size Obviously this approach

additional inventories during this period.

Although this strategy is not right for everyone, clients that have implemented this approach have had some really good results. Even if a dealer does not experience great

Expected Number of Cars Sold – Jan thru March

150 units

Expected Cars Sold – Remainder of 2014

60 units

Cars Currently in Inventory and Recondition

< 45 units >

Cars Needed as of March 31 for April Sales

35 units

will require the dealership to determine if it has adequate funding to carry this additional inventory. The last thing a dealer wants to do is stock up on inventory only to determine it is out of funds and cannot sell and finance additional vehicles. A dealership should also establish that stocking these inventory levels will not affect its borrowing base or any existing loan covenants.

Many dealers do not have adequate lot sizes to carry such inventory amounts and will have to secure additional lot areas. We have noted many dealers are able to find short term lot solutions at little or no cost. Some auctions with excess lots have agreed to allow dealers to store vehicles on their lots (at a low cost), to encourage dealers to purchase from their auction. Obviously the cost of such storage should be factored into any analysis to stock

results, the downside and related cost is relatively minimal.

Make good purchases Should you adopt this approach this year, be sure to buy those vehicles that sell the best. We have many dealers that report they see a correlation between the type of vehicle purchased and a decrease in amount of charge off.

By being proactive in making your inventory purchases you will likely see more sales, with higher down payments and lower chargeoff. Most dealers make inventory purchases on a haphazard or needs based approach…don’t let this be you.

Dave Wiggins is an automotive CPA with CliftonLarsonAllen and has expert knowledge of the innerworkings of both retail and Buy Here-Pay Here operations.

October 2014 DEALER BUSINESS JOURNAL | 15

BUSINESS OPERATIONS

Product Innovations AutoTrader.com Tackles Transparency for Buy Here-Pay Here Dealers with New Solution

T

ransparency is the buzzword in the automotive industry in 2014, but it is typically not associated with the Buy Here-Pay Here industry. Dealers who serve consumers with poor credit have a hard time competing alongside the traditional dealership model that offers incentives, low down payments, or low interest rates.

According to Brett Kelly, Director of Independent Dealer Business at AutoTrader.com, “The trend towards a more transparent business model is still controversial even in the franchise space, but there will be a tipping point. This trend will ultimately carry over to the Buy HerePay Here model, so it’s important for Buy Here-Pay Here dealers to be mindful of what car shoppers will expect out of the shopping process.”

Kelly also adds, “Many Buy HerePay Here dealers would prefer to be transparent with their customers, but

they haven’t had a space to effectively do so until now.”

For the typical Buy Here-Pay Here customer, they shop for a car differently than a traditional car shopper. Their needs are different, so their focus is different. For this segment, the top priorities are financing and finding a local dealer that can fulfill their need for financing approval. Until now, these shoppers have not had a reliable, easy way to find dealers who can meet their needs.

Buy Here-Pay Here and credit- challenged shoppers use the Internet as much as traditional car shoppers; therefore, it is safe to assume that

16 | DEALER BUSINESS JOURNAL October 2014

they expect a similar experience.

If a customized site existed, then they would likely use it. With this in mind, AutoTrader.com has created an entirely new shopping experience focused on connecting Here Pay Here shoppers with the dealers who serve them. For the first time, dealers can compete in their own marketplace without having to compete alongside traditional dealerships.

The official launch of the AutoTrader Buy Here-Pay Here Center was in May of this year.

Since its launch, over 600 dealers have started advertising on the site. AutoTrader is offering free participation in the new experience to Buy Here-Pay Here dealers until May 31, 2015.

To learn more and register, visit BuyHerePayHere.

AutoTrader.com/ GetStarted. ¹Source: CNW Market Research projections through 2014

DealerBusinessJournal.com

Save the Date

APRIL 12-14, 2015 New Orleans, LA Early Registration Available!

NEW • TOP|VENDORS • PRODUCTS & Networking SERVICES Nation’s TopBHPH ExpertsBENCHMARKS | Collections Strategies Payment Processing | Powerful Compliance Specialists | BHPH Sales Training | Inventory Outlook ...Your Success Is Our Business

October 2014 DEALER BUSINESS JOURNAL | 17

NEW BHPH BENCHMARKS | TOP VENDORS | PRODUCTS & SERVICES

COVER STORY

You can’t have one without the other, so build every deal from the beginning with the end game in mind.

By Christy Taylor

T

here are a lot of mysteries in life. What happened to the lost city of Atlantis? Does Bigfoot really exist? Who shot JFK? For car dealers, unlocking the secret to sales and financing isn’t science fiction, but it can be cause for good debate. Is it best to sell the car and then find the financing, or secure the financing and then find the right car? The answer is a little of both.

When a customer comes to you looking to make a purchase there are a lot of things that happen almost simultaneously. The salesman has to build rapport without being pushy. The customer’s transportation and budget needs have to be understood and evaluated. The inventory has to provide the right choices for any scenario and the money has to be available to make it all work.

If one of those moving parts breaks down, the deal is put in jeopardy and you and the customer start edging dangerously close to feelings of frustration and distrust. Is there a more worse-case-scenario than walking a customer

18 | DEALER BUSINESS JOURNAL October 2014

DealerBusinessJournal.com

through the sale, ironing out the financing details and then finding out it won’t be approved? Make sure to not let that happen by always viewing a potential sale through the lens of its financing. Here’s how: Set the Stage If your website does not have an online credit application, then stop right now and get one. An online credit app makes it easy for the customer to submit their information and for you to be one step closer to locking in their financing. Often, car shoppers who have the intent to purchase are eager to complete a credit application to determine if they are pre-approved before coming to the dealership. This provides the dealer with the advantage of knowing what the customer’s challenges may be before the sales process begins. While the formal credit application and loan approval will still need to happen in the dealership before the transaction can be complete, gleaning this preliminary information will help you set the deal up for success from the start.

Have the right inventory Everyone knows the right inventory is essential for a car dealership, but what are your parameters for finding it? Are you out scouring the auctions for low-mileage units you think your customer may want to buy? Of course you are, but, maybe it’s time to expand on that theory of thought and ensure that it is not only a car they want to buy but one they will be able to get financing for.

Here is an industry tip that can help: Find out what your lenders are financing and use that as your guide when hunting inventory. Give your lenders a call and talk with them about the kinds of deals they have been working lately. Ask what the top five makes and models are that they have financed over the past few months. What were the mileage ranges? Are there any trends that are noticeable? If you do this on a regular basis, you not only will be able to pretty much guarantee you will have financeable inventory but also you might be able to infer some things about the marketplace. If you pay attention and keep track, you may find clues that can help you intuitively know what customers are looking for as well as assuring yourself that you will be able to get paid.

and debt to income ratios. Designating inventory on the lot that would be ideal in a variety of scenarios will help salespeople steer the customer to what might work best.

Make the right match: The market is overflowing right now with lenders who are ready and available to finance a sale, so take advantage of the competition and selection. Build relationships with enough finance companies to have a spot for any customer that walks on the lot. From deep subprime to prime plus, have one or two lending options available for each market. Go beyond just maintaining a list and find out from the financing companies what they are looking for in a customer. They may all be after the same type of demographic, but understand their corporate philosophy and culture. Now is the time to be a match-maker and truly understand the needs and interests of both parties so when the connection is made, it becomes a sure thing.

If you have been in the car business for any length of time then you know that it always comes down to the right customer, with the right car and the right lender.

Understand how these three elements are connected and how to balance them with equal amounts of preparation and attention. Doing so just might keep you from counting chickens before they are hatched, or rather, sales before they are financed. The answer to the age old question of which comes first, the sale or the financing, is really neither. They need to be coordinated to happen at the same time.

It always comes down to the right customer, with the right car and the right lender. Understand how these three elements are connected and how to balance them with equal amounts of preparation and attention.

Understand the numbers: Finding out the entire financial story, whether verbally through an interview or electronically with an online credit form, is needed to structure a sound deal. It is vitally important to be clear on the customer’s monthly income as well as where that ranks among basic industry benchmarks for payment amounts ...Your Success Is Our Business

October 2014 DEALER BUSINESS JOURNAL | 19

BUSINESS OPERATIONS

StopLoss

By John Krivacsy

A Brave New World

F

or all the technological advancements that are made there are also technological risks that need to be managed. We all enjoy being able to have instant access to all the knowledge the Internet holds, but we don’t always fully understand how the data we store and share on our computers can be at jeopardy.

It is wonderful to be able to store all our personal and business records on computers so they are easily accessible. The problem with this strategy is that they are easily accessible, but not just to the people who you think should have access to them.

Recently there was a case where an employee of an auto

dealership innocently downloaded customer information in order to do some work at home over the weekend on their personal computer. What started out as a well-intentioned idea turned into a charge against the dealership because the employee did not realize that once that information was downloaded to their personal computer it was available to other shared programs that they had on their computer. It is difficult for most of us to understand how all this new technology interacts. It did not occur to the employee that peer-to- peer software that is often used to share music and videos could also be used to share this protected customer information.

The Federal Trade Commission enforces the GrammLeach-Bliley Act, which applies to all financial institutions.

Car dealerships are considered

At the end of the day it is the dealer who is held responsible for their employees’ actions. Make sure they are aware of the penalties for violating the rules.

financial institutions if they enter into finance or lease transactions with customers. Buy herepay here auto dealerships are considered financial institutions and are subject to these federal requirements and any of their state laws expanding these requirements. This act requires that dealerships that do handle financial transactions have a documented information security program to protect the confidentiality and integrity of personal consumer information.

This is interpreted to mean that all the information that you gather from customers who may finance or lease from you needs to be protected.

Your customers are the foundation of your business. It certainly would not be a positive marketing strategy to have the state attorney general bringing action against your business for violating trade practices laws. To protect your business interests, you should review these required safeguards and privacy rules with your attorney and read the information available to you online at The FTC’s government website (www.ftc.gov). There are many other sites providing suggested security program techniques and general guidelines for complying with Gramm – Leach – Bliley Safeguard Rules and other related requirements.

Another step to take in protecting your business is to review the availability of insurance coverage with your insurance Continued on Page 23

20 | DEALER BUSINESS JOURNAL October 2014

DealerBusinessJournal.com

9th Annual Event Announcement

2014 &

Early Bird Registration

DALLAS, TEXAS

20

December 8 -10, 2014 Embassy Suites DFW Airport North

1-888-599-1720 | S ALES@LEEDOMGROUP.COM WHAT’S INCLUDED Breakfast In-Depth Personalized Training Lunch Networking Sessions Snack Breaks

...Your Success Is Our Business

CONFERENCE TOPICS Benchmarks Underwriting Skip Tracing Teambuilding Compliance Collection Call Techniques and much more!

WHO SHOULD ATTEND? BHPH Dealers Finance Company Managers Collection Managers Underwriters Collectors Skip Tracers

LE EDO M

ASSOCIATES,

LLC

October 2014 DEALER BUSINESS JOURNAL | 21 Twenty Groups • Consulting • Training

BUSINESS OPERATIONS

ReInsurance

By Tim Byrd

Persuasion vs Manipulation

I

of the untrained folks you hired poorly, and learn from them how to do it wrong. It is a vicious cycle.

Most salespeople are so pressured to make a living, and so unconsciously incompetent that they resort to unethical manipulation, telling people anything, doing anything to make a sale and hold more gross. Sadly, it is worse now than it has ever been. When I talk with colleagues that have been in this business for a long time, we shake our heads at the manipulation tactics in the car business nowadays. Part of this is the culture in which we live.

However, most of it is “the pack ain’t no faster than the lead dog.”

Yep, YOU, Mr. Dealer.

Our poor reputation was not earned over night. And by the same token, I think it might always be with us. Why? Primarily, due to the path of least resistance.

The easy way. We are good enough. Why do you think the manufacturers came up with CSI? Now, I know Having a great reputation can be the some great single most important business plan car people you can have. Always do the right who work very hard thing, regardless of the cost, or of its to always convenience. do the right thing.

Frankly, it is not easy being method for a new salesperson is the good guys, but it is very to throw them on the sales floor rewarding! and let them sink or swim. My My father told me, “Son, when friend Craig Lockerd asks, “Did it comes down to it, all you have is you hire them dead or kill them your good name.” So it is with your afterwards?” What normally business. I am in the Reinsurance happens is they gravitate to the rest was talking with the woman I love yesterday. She loves me, yet, when talking about car salesmen, she is convinced their primary mission is to find a sucker. What??

Those are my people you’re talking about.

Please don’t lump us together with the lawyers and politicians.

Sadly, that’s where we are.

What the heck have we done?

We have allowed a few scum bags to define who we are as an industry. We—that’s you and me.

Us car business folks. We have a bad reputation.

How did this happen?

Poor management, poor ethics, poor hiring, and poor training are good places to start.

With nearly 30 years in this business, it continues to amaze me that the number one training

22 | DEALER BUSINESS JOURNAL October 2014

business with DealerRE. I am proud to say we have an excellent reputation. I run this company as if it belongs to God, because, frankly I believe it does, and I certainly want to reflect Him. Having a great reputation can be the single most important business plan you can have. Always do the right thing, regardless of the cost, or of its convenience. That business attitude will become well known in the marketplace and will do more to grow your company than any other single thing.

Next, train your people to be the very best. As my friend Dave Anderson says “There is only one thing worse than training your sales team and have them leave you. It’s not training them and have them stay.”

So, everyone involved in your sales department needs to be trained, together, to work as one! They need to learn the 2500 year old art of persuasion.

The dictionary tells us that persuasion is using one’s personal or positional resources to change people’s behaviors or attitudes.

Systematic persuasion is the process through which attitudes or beliefs are changed by appealing to logic and reason. Not tricks, not manipulation. An article in Forbe’s magazine says, manipulation is coercion through force to get someone to do something that is not in their own interest.

Persuasion is the art of getting people to do things that are in their own best interest that also benefit you. And many times, they DealerBusinessJournal.com

don’t even know that it’s in their best interest…yet.

Wikipedia says, persuasion can attempt to influence a person’s beliefs, attitudes, intentions, motivations, or behaviors. In business, persuasion is a process aimed at changing a person’s attitude or behavior toward some event, idea, object, or other person.

Right now, it would be my guess that you have a sales team of unconsciously incompetent sales managers, salespeople, F&I managers and BDC personnel. If they are not preforming in the Top 1 percent in the industry, shake your head yes!

One can have great products and services, but if your people are not trained, what ultimately do

you have? If all your people have had some training, but on different methods, that is also inefficient.

Where does one learn about the art of persuasion? Well, you could read a book. There are several out there. Then you could have all your people read the book, but how does that relate to selling cars and being profitable? After all, the biggest hurdle when finding a better way is implementation.

The key to having your company rise to perform in the Top 1 percent is to get your entire sales team trained in the art of persuasion, together. Putting them on the same sheet of music. Have them finishing sentences for each other. Take them from unconsciously incompetent to consciously competent.

That kind of development and training is not easily found for our business, unless of course you know where to look.

Tim Byrd is Founder and President of DealerRE a Tim Byrd & Associates company, a managing agency located in Gloucester, Virginia. An Auto Industry Expert on Dealer Owned Reinsurance Companies, BHPH Operations and F&I Development. A 25+ year veteran of the car business, Tim is a trusted advisor to many car dealers. Tim is a sought after speaker and co-author of the best-selling book “Unfair Advantage.” Tim can be reached at www.DealerRE.com or by calling 804-824-9533.

A BRAVE NEW WORLD continued from Page 20

agent. With the increasing rate of these incidents, insurance companies have recognized the need for some insurance coverage in these areas to help businesses with the potential financial losses they may face if a violation is discovered. Some coverages are currently available and insurance companies continue to evolve these coverages suggesting you review this with your agent now and at each policy renewal.

In addition to putting your information security plan in place and making sure you have employees assigned to implement it, the dealership also has to abide by the privacy stipulations. This includes providing your customers ...Your Success Is Our Business

a privacy notice that explains how the information you require will be collected and whom it will be shared with. Customers need to be given the right to limit the sharing of some of their information. Even if you don’t normally share any of your customer’s information with others, you still are required to provide a written privacy notice that is clear to your customer.

At the end of the day it is the dealer who is held responsible for their employees’ actions. It is to your benefit to make sure your employees are trained correctly as the penalties for violating these types of laws can be extreme. The FTC’s Safeguard Rule requires every dealer to document and

implement a written plan and to designate which employee will be the coordinator of the plan. It is not just the threat of government action that should drive your behavior.

Compliance makes good sense.

Customers are very concerned about identity theft during these new technological times and it is to your benefit to show them you share their concerns.

John Krivacsy is a senior vice president and Claims and Loss Control Manager with Automotive Risk Management and Insurance Services, Inc., (ARM) based in Stockton, Calif. To reach Mr. Krivacsy, send an e-mail to jkrivacsy@armonline.com.

October 2014 DEALER BUSINESS JOURNAL | 23

SALES & SERVICE

Targeting Campaigns

By Dani Sherrod

Data Driven Dealerships Can Sell More Vehicles

I

n dealerships today, we have more stored data than ever before, the issue is that dealers do not know what to do with this information or even realize the value of this data.

So, data is only information gathered over the years through sales and service, right?

No way, data that is held in your DMS system is the brain of the dealership, it helps every part function and streamlines processes and makes the body run smoothly.

Your data is the DNA of your dealership, it is fundamental and has distinct characteristics of

service by 50 percent. All facets of the dealership, including, sales, service and customer relations can be taken to the next level with the right data systems company to help.

The data that is collected daily, is the stock of the company, it holds the ladders of success within the confines of the system. A good dealership is appraised according to the integrity of the data held.

Good data is an issue for each and every dealership, and purifying that data should be of high importance to the decision maker at the dealership. This is called Data Integrity, there are only a handful of companies that can help dealers with this issue, and most of them are expensive.

Most manager or owners, are afraid of the data and aren’t

Good data mining companies, can wake up the sleepy buyers in your database and prompt them to come to the store through clear, time sensitive messages. your processes and the type and demographics of your customer base, which is relative to the area your store is based in. The quality of your data is the legacy or the pedigree of your business.

Unfortunately, dealers use only 20 percent of the data, and most of the time it is used for daily routine or maintenance campaigning, which fails on every level. Using intelligent software dealers can run the dealership smoothly plus improve sales and

sure how to process or fix what seems to be broken. Good data mining companies, can wake up the sleepy buyers in your database and prompt them to come to the store through clear, time sensitive messages. There are many buyers living inside the DMS that have a high statistical probability of buying or servicing with your dealership.

We call those people the “perfect prospects”, they are the easiest, least expensive, organic

24 | DEALER BUSINESS JOURNAL October 2014

lead that you can harvest. No third party or pre-paid lead prospect has a higher closing percentage than the family that resides in your won DMS. Most dealers have daily routine emails or letters that are generated and mailed out each day, without a clear idea of what the ROI really is. Spending hundreds of thousands of dollars on mainstream advertising, forgetting about all the unsold, in equity, or conquest prospects, that will visit another dealer, if they are not reached in a timely manner.

Many of the DMS companies, sell their product with a built in Data mining plug in, unfortunately this requires the dealer to manage and supervise the process.

Many managers quickly realize that there is a huge learning curve when it comes to how to implement a data campaign. The campaigns should include: • • • • •

Intelligent database clean up and repair.

Service and sales campaigns.

Targeted email and direct mail.

Campaign-based landing pages.

Customer and prospect eNewsletters.

The targeted campaigns require catchy templates, which should be personalized with each consumer’s name. The integrity of the data will fail at this level, data must be appended, by outside sources, such as POLK, USPS, Continued on Page 26 DealerBusinessJournal.com

Are you a DBJ Subscriber?

Get the Dealer Business Journal delivered directly to your dealership, your inbox, or BOTH for FREE! Sign-up online:

dealerbusinessjournal.com/ subscribe.php

Dave Anderson’s 90-Day Online Hiring Certification Course!

A dealership-changing 16 hour course!

Make it mandatory for all managers in your organization!

Call 818-735-9503 for enrollment information!

Dave Anderson

Have a question? The answer is right at your fingertips.

The Leedom Group’s online resources can help you find it.

Get the latest news and updates online at any of these sties:

LeedomGroup.com TwentyGroups.com PaymaxxPro.com DealerBusinessJournal.com ...Your Success Is Our Business

October 2014 DEALER BUSINESS JOURNAL | 25

SALES & SERVICE DATA DRIVEN DEALERSHIPS continued from Page 24

Data integrity is the key to running campaigns, and the secret weapon of some of the largest dealer groups in the U.S. Engaging customers and encouraging loyalty is the first step to increase sales and service. or national do not call registries.

Leaving the dealer with an extreme handicap of resources or personnel to accomplish the cleanup and repair of data that is either old, incomplete or false.

Data integrity is the key to running campaigns, and secret weapon of some of the largest dealer groups in the US. Being able to engage your own customers and encourage loyalty, is the first rung in the ladder of increased sales and service.

It must start with Data hygiene, a complete over haul and repair of the old, dusty records that have been collected and ignored over the years. Once this is complete it turns your DMS database into a clean marketing engine with verified and appended household data from numerous sources, including Polk, USPS, VIN Title Transfer, Conquest lists and your OEM. Segmenting and house holding your data to help ensure consumers are getting the right message, at the right time, to the right person, via the right channel will drive extreme traffic to all departments of your dealership.

When “Internet marketing” was a new idea, many dealerships went away from traditional marketing to Digital Marketing, they would say… print is the medium of the past. Those people have spent more money trying to capture their portion of online shoppers, than if they would have used a hybrid model which included a rare breed of targeted

marketing using all different channels.

With the enormous amount of data that is available, in and out of the dealership, the combination and hybrid recipe makes more sense than ever.

So now, we look at advertising not by a certain channel anymore, but more refined, by either targeted (using existing variable data), or non-targeted (using variable data pulled from outside sources).

So to put this in laymen’s terms, we can use targeted direct mail, to drive online traffic, and use that online traffic to tell how to retarget and redefine our mail campaign, this reduces waste by confirming the habits and desires of customers, and allows direct

26 | DEALER BUSINESS JOURNAL October 2014

mail to deliver a higher quality piece, that is more relevant by tracking their online shopping behavior.

The best part of this type of advertising, is that the dealer can import all of the information that was captured and add it to the existing database of customers, to help future marketing efforts, and making your DMS database into a superior marketing engine, instead of old insufficient records, that fail every time.

Dani Has been in the retail automotive Industry for 16 years and is a National Sales and Marketing Executive with Showcase Publications. She can be reached by email at dani@autoshopper. com.

DealerBusinessJournal.com

Itâ&#x20AC;&#x2122;s time to change your approach to F&I compliance

WITH THIS SPECIAL OFFER...

Need Some Help?

Leedom & Associates, LLC offers consulting services and guidance for dealers just like you. Our training leaders are able to review your operation and provide an action plan to help your dealership achieve benchmark performance. Virtually every week of the year our consultants are onsite, in dealerships identifying opportunities and creating net profit improvement for dealers. Some of the programs we offer include :

Subscribe to Spot Delivery and, at no additional charge, we will send you a copy of your choice of any of our legal compliance books, CARLAW, CARLAW II Street Legal or CARLAW III Reloaded.

Strategic Planning Buy Here - Pay Here Training Special Finance Training Dealership Review and Evaluation Net Profit Improvement Collector Training Telephone Skills Workshop Continued on Page 35.

Forecasting Customized Consulting

Call us to set up your one-on-one consultation at 800.966.8733. ...Your Success Is Our Business

To order, visit us at www.counselorlibrary.com/offer/spot or call us at 877-464-8326.

Also follow us on: October 2014 DEALER BUSINESS JOURNAL | 27

SALES & SERVICE

Customer Relations

By Greg Wells

Service Business Development Centers Build Relationships, Retention and Revenue

I

n grade school we were taught the three R’s; reading, writing and arithmetic. They represented the basics of education. The three R’s, the basics, of your Service BDC are relationships, retention and return (ROI). Successful service BDC’s get the basics. By building lasting relationships and improving customer retention, your BDC will produce a robust return on your investment, especially in the long run.

It starts at delivery. At the moment the car hits the curb, the sales process ended and the service process began. This is an important perspective to adopt because your customer’s experience with your service department will lead to more service and sales, or a lost customer.

Sold follow up is service marketing and a quality service experience is sales marketing.

There is really no other way to look at it.

Building Relationships It is cliche—you need to build a relationship with your customer.

But how much time have you invested in defining exactly what “building a relationship means”?

Do your frontline employees share the same concept? Can you state in

your own words why a relationship is important? Have you thought about how directly a customers experience impacts retention?

Whatever your goals are, it comes back to people and process to reach those goals.

An intelligent process is a must. Reduce the frequency and improve the quality of the touches.

When a customer buys a car do you bombard them with emails, phone calls and letters? I often see dealerships sending thank you letters from the dealer, emails from the sales person, introduction

Sold follow up is service marketing and a quality service experience is sales marketing. There is really no other way to look at it. letters to the service manager and making a CSI call from the customer relations manager or BDC. Add the calls and emails and letters from the manufacturer on top of your new vehicle customers and they are being pounded with different messages; all from different people.

Think like your customer. “All I did was buy a car!” We are lucky they don’t put a restraining order against us.

This is why you need an intelligent process. You can’t

28 | DEALER BUSINESS JOURNAL October 2014

build a long lasting value added customer relationship as a company, with a crowd mentality.

Once you know why, the what becomes easier. Your BDC is the single entity that can build a relationship that transcends departmental lines, isn’t affected by turnover on the frontline and be the other “person” in the customer’s relationship.

In one call, a BDC agent can congratulate your customer, measure sales satisfaction, quality check processes, confirm or schedule the first service appointment, invite them to the owner clinic and schedule the next contact in sixty days prior to a confirmed service appointment at 90 or 120 days. It can all be done in one contact.

We would all agree the beginning is always important.

Start your customer’s vehicle lifecycle intelligently. Now think like your customer. Felling better?

Follow this philosophy throughout the customer’s ownership of the vehicle. Look for high quality touches that benefit the customer. Frankly, form letters and automated anniversary emails don’t nurture a relationship. What if that was how your friends and family communicated with you?

Personalized, relevant and timely touches are what work.

Always know why the customer will benefit from the interaction Continued on Page 30 DealerBusinessJournal.com

ADVERTISER PAGE AUTOMOTIVE TOUCHUP

7

COUNSELOR LIBRARY

©2014 CliftonLarsonAllen LLP

Advertiser Index

27

CLIFTONLARSONALLEN 29 DAVE ANDERSON

25

PAYMAXXPRO

2, 11

SECURITY AUTO LOANS

33

SPARTAN FINANCIAL

5

STERLING CREDIT CORPORATION

29

FIND OPPORTUNITY Tune up your tax plan with professionals who aren’t afraid to get their hands dirty.

Audit

Tax

Consulting

Outsourcing

Wealth Advisory

Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.

ADVERTISING INQUIRIES CALL 941.371.7999 OR EMAIL SALES@DEALERBUSINESSJOURNAL.COM

CLAconnect.com/dealerships

Fast Track Your Cash Sterling Credit Corporation is your key to turning in-house sales contracts into fast cash. Our seasoned understanding of the industry will help you generate a timely return. Our professional team of finance experts can create a program designed exclusively for you and your dealership. We’ll get you the cash quickly, treat your customers with respect and free you from the hassles of collections, all with a personal touch.

BENEFITS: • Minimize risk • Purchase inventory • Accelerate your profits • Reduce collection responsibilities • Meet operating cost goals • Grow your business!

We can help get your cash flow back on track. Call today!

Sterling Credit Corporation

Offering Point-of-Sale and Bulk Purchase Programs

Toll Free 855-222-2120 www.SterlingCreditCorporation.com ©2013 Sterling Credit Corporation

...Your Success Is Our Business

October 2014 DEALER BUSINESS JOURNAL | 29

SALES & SERVICE SERVICE BDC’S BUILD RELATIONSHIPS, RETENTION AND REVENUE continued from Page 28

BDC’s don’t interfere with the great relationships some of your service advisors and sales people have with your customers. BDC’s actually hlp those relationships by adding value to the dealership for which the advisors and sales people work. and make that the purpose of the call, letter, email, newsletter, birthday card and so on.

In today’s world of transparency, only personalized service will create true loyalty and increase retention.

Retention Let’s face it. It may be the one word that sums up everything you’re trying to do from a process standpoint.

The first act of retention is getting the customer in for their first service appointment.

A lot of people who buy cars from you are already using your service department. Good service experiences lead to car sales and good car buying experiences lead to service business. It’s the yin and the yang.

As your customers lifecycle ages, be smart with your contacts.

Make sure your messages and offers are timely and relevant.

Contact them for maintenance requirements and recalls. Parlay that with seasonal offers and use a monthly e-newsletter to keep your name top of mind. Personalized birthday cards, coupons, accessory offers are examples of value added contacts from the customer’s point of view.

Now add in the milestones.

Identify when customers begin to become good sales prospects.

Milestones like the vehicle’s warranty is expiring or the customer enters an equity position.

Large repair bills or expensive maintenance are also catalyst for the “its time for an upgrade” discussion.

Don’t forget about your lease portfolio. Leasing has made the comeback but have your processes?

When leasing was popular I saw a lot of dealerships had a dedicated Lease Portfolio Manager. That role is slowly being revived as rejuvenated lease portfolios begin to mature. Nothing fits better in your BDC wheelhouse.

It all started at delivery. When the customer trades the next time the retention process is just rebooted. It never stops.

Revenue The ROI on a service BDC is incredible. You see results quicker than you do with sales BDC’s and Service BDC’s are easier to staff and operate than a sale’s BDC because it’s just easier to convert a service customer. It’s almost order taking other than fielding easy price/time objections.

A service BDC should increase appointments, convert customers who decline service and market customers who have never serviced or have fallen outside a preset timeframe,

30 | DEALER BUSINESS JOURNAL October 2014

usually six or nine months.

A dealer up east I know produced a whopping $83,000 dollars from declined service opportunities with a smart call from the BDC. This is a group with five locations that processes about 8500 repair orders a month.

That’s $9.75 per repair order.

That is an incredible return on approximately $3000 in personnel expense.

Right now, recalls are a huge opportunity for many new car franchises. A good service BDC can manage the whole process from A-Z. Download the list, push it to CRM, make the contacts and schedule the appointments. The BDC can track parts availability and manage the appointments as parts are available. Your Continued on Page 32

DealerBusinessJournal.com

IT TAKES A

TEAM

It’s your dealership -- Isn’t it worth having experienced talent?

Seven of the last ten NIADA Quality Dealers of the Year have been or still are members of the nationally recognized Leedom Twenty Group Program.

• Best Idea Session

• BHPH

• Access to Training

• LHPH

• Expert Advice

• Controllers

• Consulting

• Finance Company

• Networking

• Retail

• Proprietary Online Forum

• Service

• Dedicated Group Assistant

• Carefully Monitored Expenses

• Full Financial Composite

APPLY

TODAY!

...Your Success Is Our Business

• Three Meetings per Year

Call 1-888-599-1720, Email Meredith@LeedomGroup.com or, Visit www.TwentyGroups.com

October 2014 DEALER BUSINESS JOURNAL | 31

SALES & SERVICE SERVICE BDC’S BUILD RELATIONSHIPS, RETENTION AND REVENUE continued from Page 30

Let’s talk about the fuzzy stuff.

You know, the things you can’t really track.

The first one I notice is the phone pressure taken off the service lane. Phones are getting answered and the advisors can give undivided attention to the customer in front of them. What kind of value is that creating? It actually is something you can track though. CSI and hours per RO are probably the best indicators.

BDC’s offer consistency in your processes. Service follow up happens all the time because it’s in the hands of a department that has capacity and isn’t slowed down by busy days in the lane that would prevent frontline employees from making any outbound calls and sometimes miss a lot of inbound calls. Think like your customer.

What would you do if you needed service on ANYTHING and couldn’t get the provider on the phone?

You don’t have to have a BDC to build relationships, have high retention rates and be profitable.

A BDC is just one way of reaching those goals.

BDC’s don’t interfere with the great relationships some of your service advisors and sales people have with your customers. BDC’s actually help those relationships by adding value to the dealership for which the advisors and salespeople work; thus adding value in the employee.

No matter how you go about them, relationships and retention are forged by intelligent strategies that are value added, timely and relevant to the customer. The ROI is built in.

Relationships and retention are long lasting things by nature. They provide a solid foundation for any service department and really the whole dealership. It is becoming exceedingly harder and more expensive to buy new customers.

The other choice is to be indifferent. My dealer once told me that 65% of our lost customers fire us because of an attitude of indifference. An automated or template process is just as bad.

Relationships and retention are long lasting things by nature.

They provide a solid foundation for any service department and really the whole dealership. It is becoming exceedingly harder

32 | DEALER BUSINESS JOURNAL October 2014

and more expensive to buy new customers.

Be smart. Think like your customer and hang on to them.

Greg Wells is the President at AllCall Automotive Contact Center. A US based outsource BDC serving dealers in the US and Canada. Greg is a popular industry expert on BDC’s, Internet Sales and Digital Marketing.

DealerBusinessJournal.com

Phone: 888.874.7579

Specialists in Specialists in Sub-Prime Sub-Prime g

g

Do you ever wonder your dealership’s performance and profitability stack up against the rest of the industry?

Leedom and Associates, LLC has created an easy to use Dealership Profitability Profile to help you find out. Go online to www.twentygroups.com and click the Analyze Your Dealership button.

By answering some quick questions you will receive initial feedback about your key performance indicators and identify potential opportunities for growth.

g

g

g

We Buy the Customer and Their Story, NOT Their Beacon!

We Buy With YOU Making a Profit We Buy Open Bankruptcies (7&13!)

We Buy the First Time Buyer We Buy Deeper Than Our Competition!

“WITHOUT QUALITY, PERFORMANCE AND SERVICE ... IT’S NOT A GOOD DEAL” CURRENTLY LICENSED IN: IA, IL, IN, KS, MI, MN, MO, NE, OH, PA, and WI

CHECK OU OUR ALL T NEW WEBSITE!

WWW.SECURITYAL.COM ...Your Success Is Our Business

October 2014 DEALER BUSINESS JOURNAL | 33

SALES & SERVICE

Female Perspective

By Jody DeVere

Are You Trained on Assisting Women Car Buyers?

W

here are you on the “women car-buyers topic?” Do you know the number of women who influence purchase decisions of your brand? Buy your brand? Use your brand? Are you communicating effectively with women in your sales and service departments, in your marketing and advertising?

In your digital marketing and social media efforts? How does the changing face of women as consumers impact your business?

Why is this important to have this knowledge? Look at the facts.

Women are the most dynamic and fastest growing economic force.

Globally, women control close to $28 trillion in spending and this continues to rise given advances in education, career opportunities and social and political leadership.

In many households purchasing decision is either women-dominant

or joint breadwinners, 72 percent of women in the U.S. earn half to all of the family household income.

Almost 30 percent of all businesses are women owned. Women are also more likely to own their own business to give flexibly as they juggle work and family.

Meet the curator of the world’s premier conferences on marketing to women and Mom’s, my good friend Nan McCann who is the President of PME Enterprises and Co-Founder of the, M2W® : The Marketing To Women Conference and the M2Moms® : The MarketingTo-Moms Conference.

Nan McCann states, “Few of the big auto makers and a mere handful of dealerships attend our conferences to learn how to improve their work with female consumers.

Information is power. To understand the market through the female gender lens it’s important to learn from the best in the business.”

“Our conferences, M2W® and M2Moms®, are both in their 10th year and help marketers learn how

Women are the most dynamic and fastest growing economic force and control close to $28 trillion in spending.

to improve consumer engagement and business to drive increased market share and revenue with today’s power consumer, the gender that makes the most purchasing decisions across all brand categories all the time...WOMEN,” states Nan McCann, President, PME Enterprises.

Nan continues, “Tom Peters, marketing guru, author of the acclaimed book In Search of Excellence and long time champion of this topic has famously said, “Bottom line: This “Women’s Thing” is...unmistakably, in my opinion...

Economic Opportunity Number 1.

And there is no close second.”

“Let me be clear. This is not a battle of the sexes. This is simply a matter of how we think, design products, communicate, market, sell, service and manage our brands.

It is a matter of smart business.

And this is not just a U.S. economic reality. It’s a global imperative where women are economic game changers and you are building your brand fortunes in their dynamic court,” declares Nan McCann.

Does your dealership attend conferences and or training on communicating effectively with women car buyers? Specialized conferences and training by experts provide the needed insight, competitive edge and know-how which is key to success in gaining “Market-Share Advantage with Women”.

Jody DeVere is the CEO & president of AskPatty.com. Contact her via email at jdevere@askpatty.com.

34 | DEALER BUSINESS JOURNAL October 2014

DealerBusinessJournal.com

CLASSIFIED ADS

FEX DMS is the industry’s leading web-based dealer management software solution. The BHPH module allows dealers to service their portfolios with integrated communication tools, from automated dialing to texting, managed by a comprehensive queuing technology.

FEX DMS maintains the industry’s most robust EPS platform, including the public pay portal myFEXaccount.com

Balloons Sell Cars

!

Re-Usable

air-filled vinyl balloons

Weather Resistant

indoor and outdoor use

Versatile

displays for every setting

www.balloons.com

800-239-2000

Quality Custom Software

STATE OF THE ART SOFTWARE SHOULD NOT COST A FORTUNE. Car-Ware’s DMS software provides dealer’s with advanced technology and excellent customer service. Call us today at (855) 504-5949 or visit www.car-ware.com for more details.

• Manage Inventory, Sales, & In-House • IRS Forms 8300 &1099-C • Report customer’s credit to major credit bureaus • Accounts receivable analysis • Paymaxx Pro Online Payments • Passtime – Manage Tracking Devices • RouteOne- Access to Multiple Lenders • Banker’s Systems Plain Paper Contract For a free demo please call 713-827-0777 / 866-550-0777 Visit our website at www.AutoActionDMS.com

Serving Dealers for 25 years.

Inventory, Sales, Bookkeeping, Collections, Bi-lingual Support, Prospect Management ~ CRM

800-989-6096 carsplusdms.com Paymaxx Pro has launched 3 new ways to accept payments 24/7!

• Pay by Phone • Text to Pay • Paymaxx Pay Web Call us today for details!

877-527-5658

Dealer Business Journal now has an easy way to reach over 20,000 dealers around the country with our new Classified Ad section.

Maybe you’re a dealer looking to hire a new General Manager, or a start-up company looking for a way to get the word about your services.

With three ad sizes to choose from, you can easily get your message out there.

Examples shown are actual size.

1.25” x 1.25”

1.25” x 1.25”

2.75” x 1.25”

Call Meredith McNellis at 800-966-8733 ext 3 to place your ad for the next issue. ...Your Success Is Our Business

October 2014 DEALER BUSINESS JOURNAL | 35

INDUSTRY NEWS

Market Observations Falling Used-Car Prices Drop on New-Car Market

D

eclining used-car values are putting pressure on newcar sales, says Larry Dominique, president of residual predictor ALG. “We think automakers will put more incentives on new cars to compete against used-car sales because all of a sudden late-model used cars are more affordable,” he told WardsAuto. “We’re starting to see that.”

Wholesale used-vehicle values declined about 2 percent in the third quarter. With only an occasional downtick, used-car prices had enjoyed a streak because of high demand and low supplies.

But as used-car supplies increase, due to better new-car auto sales of two and three years ago, pre-owed vehicle prices are coming down.

The new- and used-car markets always interact at some level.

But things are expected to get interesting as the natural price gap between the two narrows.

Franchised new-car dealers have pulled ahead of independent used-car dealers in the number of pre-owned vehicles they sell.

At one point until a few years ago, the two groups were neck and neck, each roughly selling 15 million used units a year. Then franchised dealers took a slight lead.

Now, they’re way ahead.

In 2013, franchised dealers sold 15.7 million used vehicles.

Independent used-car dealers sold 14.3 million. Twelve million more were sold in private-party transactions.

The third-quarter drop in used-car prices is good for dealers in certain ways, Manheim Chief

Economist Tom Webb says, calling it “part of a healthy overall market.”

He adds: “Valuation adjustments enabled dealers not only to retail the large number of customer trade-ins and lease returns, but also actively purchase from the growing supply of latemodel vehicles available at auction.

“Dealers were able to turn their inventory more quickly because of the lower wholesale prices.”

Manheim sees the used-car price decline as signaling a market returning to more normal levels after historically high prices earlier this year. After posting increases over the winter and early spring, used-vehicle prices fell for five straight months through September.

Pickup trucks were an exception.

A boom in new car sales during the quarter resulted in more tradeins and lease turn-ins in the quarter.

That increased used-car inventories and reduced prices, Manheim says.

But the price declines occurred amid a series of positives. For example, loan delinquencies and repossessions remained low.

Dealers also closed out the quarter with higher retail-unit sales in September, moving more vehicles as prices dropped, Webb says.

Third-quarter wholesale pricing for individual segments was as follows: • Compact cars continued to be the weakest segment with prices ending the quarter down 3.4% compared with a year ago.

• Midsize cars matched the overall market and experienced a 1.1 percent decline in values compared with a year ago.

• Luxury cars fell 3% compared

36 | DEALER BUSINESS JOURNAL October 2014

with a year ago. The multi-year decline in luxury cars appeared to be slowing in September.

• Pickups and vans remain the strongest segment with prices up 6.5% for pick-ups and 1.5% for vans. Owners tend to keep their vehicles for longer. That keeps supplies tighter, even as the overall market increases.

• SUVs and CUVs prices were down 1.5% to end the quarter compared to a year ago.

Normally one of the stronger segments, SUV and CUV prices fell in-line with the overall market.

The automotive industry was one of the first sectors to recover from the recession, and consequently may show less upside for the rest of the year, Webb says.

“Although economic forces suggest the retail consumer sector will improve in the months ahead, it is likely that the auto industry will plateau given that it got out ahead of, and then ran considerably faster than, the overall recovery,” he says.

That means “we should see a return to more normal prices and volumes across the entire industry.”

Used-car depreciation rates are expected to continue into early 2015, says Ricky Beggs, editorial director of Black Book used-car price guide.

“We will be keeping a close eye out for luxury-type car segments, which are expected to show larger levels of depreciation through the remainder of the year,” he says.

Excerpted from article written by Steve Finlay for WardsAuto. Posted at www.wardsauto.com.

DealerBusinessJournal.com

F O C U S O N AU TO M OT I V E S E RV I C E

Managing

your service departMent doesn’t have to be a headache!  Money saving ideas  Enhanced mechanic efficiency  Increased production  More consistent performance

Service Group Overview “Business First” format with easy to reach meeting sites and reasonable pro-rates.

Open to single and multi-point dealers Tremendous exchange of ideas and information that have proven to be game-changers.

Tightly monitored pro-rate expenses Friday to Sunday meeting schedule

Join a

twenty Group

today!

APPLY TODAY! Call 800.966.8733 ext.309 or Email meredith@leedomgroup.com Local: 941.371.7999 | www.leedomgroup.com ...Your Success Is Our Business

October 2014 DEALER BUSINESS JOURNAL | 37

WHEN IT COMES TO

TWENTY GROUPS no one has more groups, hosted more meetings, served more dealers, or has better consulting talent than

38 | DEALER BUSINESS JOURNAL October 2014

DealerBusinessJournal.com

...Your Success Is Our Business

October 2014 DEALER BUSINESS JOURNAL | 39

DEALER BUSINESS JOURNAL CONGRATULATES

FLORIDA INDEPENDENT AUTOMOTIVE DEALERS ASSOCIATION

FLORIDA STATE QUALITY DEALER OF THE YEAR!

Chris Leedom In an award ceremony at the FIADA annual convention, Leedom was selected as the 2014 Quality Dealer, the highest honor given among FIADA’s dealer members.

Congratulations Chris and good luck at the national level!

38 | DEALER BUSINESS JOURNAL October 2014

DealerBusinessJournal.com