Volume 8 Issue 12
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Database Equity Leads Equity Letters & Email Blasts Service Drive Equity Leads In-House B.D.C. Conquest Marketing Dealership & Departmental Analytics New & Used Inventory Control Live Financial Statement Daily
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PUBLISHER MICHAEL OQUENDO EDITOR-IN-CHIEF DAVID VILLA CREATIVE DIRECTOR KIM BURRELL ADVERTISITNG DIRECTOR CHRIS FRITCHER 1
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EDITOR JOSH FONTAINE
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A NEW WAY TO VIEW AUTOMOTIVE BY DAVID VILLA
HOW TO LEAD WELL WHEN BAD THINGS HAPPEN BY DAVE ANDERSON
HOW TO INCREASE TRANSPARENCY USNG MOBILE TABLETS BY MIKE ESPOSITO
19TH DIGITAL DEALER CONFERENCE & EXPO: ONE FOR THE BOOKS! BY MIKE ROSCOE
ARE YOUR WORKERS INDEPENDENT CONTRACTORS OR EMPLOYEES? BE SECURE BY SCOTT LEWIS, CPA THEY CALL HIM THE PINEAPPLE GUY YOU’RE BUSTED BY BRIAN BARLOW
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REDEFINING REINSURANCE BY TIM BYRD
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GRIT, THE SECRET TO SUCCESS BY LAURA MADISON
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STRATEGIES FOR THE MODERN DEALERSHIP BY KRISTIN HUNTLEY
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THEY HAVE TIME BY ALAN RAM
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WHERE IS THE LOVE BY MATT KOENIG
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THE SEVEN DEADLY SINS OF RECRUITING AUTO SALESPEOPLE BY SCOTT KLEIN PICK YOUR BATTLES BY CLINT BURNS
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A New Way to View Automotive! Launching January 5th
The AutoTainment Network (ATN) is for Dealer Principals, Executive Management, GM’s, GSM’s, Sales, Front end, Service, Back End, Vendors, and ALL things AUTOMOTIVE! ATN is for everyone who wants to control where they get their automotive news and solutions. This Network is for those that refuse to be spectators and demand to be in control of the content they receive, understanding that the outcomes we receive are based largely on what we do and do not consume. On ATN you will find a HUB of the best in AUTOMOTIVE talent coming together with original shows covering the hottest automotive related topics and interviewing the nation’s strongest automotive leaders. There is something on the AutoTainment Network for everyone…advertising, branding, digital, sales, compliance, training, fix ops, best practices, career, education, and more. Today’s automotive professional wants to consume what they want when they want it. Where do the people in our great industry get their information from today? And what kind of information is it? ATN exists to provide the platform that you the automotive community not only want but need! If you can’t make it to the national conferences let ATN bring the conference to you! At your convenience at the click of the mouse you have access to weekly new programming, as well as hundreds of archived shows all created for the purpose of helping equip today’s automotive professional. 6 Open Automotive news sources online and you will see and hear the reasons why you shouldn’t and might not make it and how failure looms, however log onto ATN and enter the world
of programming designed to encourage, uplift, educate, and entertain. We want to provide the automotive community with the content they want when they want it and provide them with solutions—not just problems.
The AutoTainment Network is for those that want to grow. A place where simple answers are given to the challenges we all face in the world of automotive. I hope you will join me as we continue to grow this new network. We are always looking to expand our list of experts and contributors for AutoTainment Network. If you know someone that is a proven resource in the automotive community, have them visit our contributor page and if they would like to advertise with us visit our media page. Get in the NOW and subscribe for free today and get what you need when you need it on ATN.
If You Don’t Start Today, You Won’t Start Tomorrow!
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How to Lead Well When
Bad Things Happen DAVE ANDERSON
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fter the fallout from the G.M. ignition switch debacle— and most recently with VW’s emission issues—clients have contacted me asking for suggestions on how to handle the adverse publicity, for how to keep their team focused, and on how to prepare them for customer’s questions and concerns. Of course, there isn’t a one-size-fits-all remedy; and, while what I’m suggesting in this piece is far from the final word on the topic of crisis management, you may find some ideas to help you deal effectively with adversities like G.M. and VW. If your organization isn’t burdened by bad publicity at the moment, file this away for when the day comes. If you’re in business long enough, it’s likely to eventually show up; it could be triggered by a financial institution you represent, a supplier, or as it has been lately, a manufacturer.
That’s a fairly substantial list of areas people can execute to impact results daily. It’s all about coaching them to focus more on what’s before them, than on what’s around them.
Project robust enthusiasm and attitudes:
If customers bring up the issue to personnel, each team member—from the receptionist to the CEO—should be prepared with a consistent and concise answer or explanation. In the case of an issue like VW, something along the lines of:
Maintain focus on what’s controllable:
Don’t allow the negative publicity and its ensuring burdens to become a crutch for under-performance. Managers should be reminded to focus on what they can control, and to coach their people to do likewise. They can’t control conditions, but their good daily decisions to do what’s right can marginalize adversity. Here are a sample dozen things people can largely control every day by making the right decisions, and not getting distracted by out-of-their-control conditions: ✔ Their attitude. ✔ Their work ethic. ✔ Their level of discipline. ✔ Their character choices. ✔ Where they spend their time. ✔ With whom they spend their time. ✔ Whether they’ll plan their day. ✔ Whether they’ll prospect. ✔ Whether they’ll practice. ✔ Whether they’ll work on themselves. ✔ Whether they’ll follow prescribed processes.
8✔ Whether they’ll follow up.
“It’s sad that decisions made a continent away can bring negative attention to such a great brand. But that only enhances our commitment to you at our dealership—which is to create the best car buying (or service) experience you’ve ever had.” Then take control of the conversation by asking questions more relevant to the issue at hand: the car or service they’re looking for, and the like. If your front line team members act down-in-the-mouth or worried about the issue, customers will sniff it out immediately. They’ll also just as quickly pick up on their positivity, enthusiasm, and bright-side outlook—all of which will minimize negative publicity, while it settles down and uplifts customer emotions, allaying their concern that the sky is falling. But make no mistake about it; your front line team members will pick up on the same emotions—for better or worse—as they trickle down from management. The leader’s speed during a crisis becomes the team’s speed.
Be strategic with apologies. Remember, if the crisis involves an entity you represent, you haven’t done anything wrong. Thus I discourage apologizing, except for their inconvenience, concerns, or frustrations. Don’t make a bigger deal out of the issue than is necessary.
Don’t give the issue energy publicly:
Change the dialogue:
Acknowledge the issue, express empathy for their inconvenience, concern or frustration, and then move on. Change the course of the conversation away from the problem and to moving forward and solving their automotive needs. In the case of service issues, create the perception that you and the customer are in this together, and will work through it collaboratively. Get on their side, without disparaging the troubled entity you represent, which could make you look both foolish and unprofessional. Don’t enlarge the issue by addressing it in a public way. This just refocuses people on what’s negative. People have short attention spans today, so use that to your advantage. In the case of a VW-type situation, stress and sell the “ ‘Our dealership’ experience” more in your marketing and limit VW in your advertising vocabulary for a while: “A great deal on a Jetta” or on an “AutoNation Jetta,” not on a VW Jetta, etc.
Deal positively with the press: Don’t pull the “no comment” nonsense with the press because it can make you look guilty, aloof, and as though you’re part of the problem, when you want to present yourself as a solution to the problem. If the local press calls wanting feedback on how the crisis is affecting business tell them: “We’re fortunate to represent a brand so strong that no single adversity can set it back for long. For XXX years, our team members have sold the ‘Your dealership’ brand, service, and experience as a priority over any particular make of vehicle anyhow. It’s worked very well for us and we expect it will in the future.” Contrary to conventional wisdom, it’s actually easier to lead during a crisis because alertness and urgency is heightened, and you have people’s attention. A crisis can unite a team and give them a special identity and purpose. Astute leaders will also leverage a crisis as an opportunity to redefine expectations, trim expenses that should have been cut long ago, and implement changes that are more difficult when things are rolling along and all the seas appear calm. William Arthur Ward said it well: “Adversity causes some men to break, and others to break records.” When the stuff hits the fan in your dealership, it will ultimately be your leadership that determines which side of his quote you end up on.
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Anyone who runs a business knows that transparency is considered to be a good thing. Transparency is an important part of a company’s efforts to improve productivity, boost employee morale and earn customer trust. Incorporating mobile tablets into your dealership processes allows you to present visual information to the customer. Information increases transparency because the customers feel empowered to make their own decision. It’s one thing for your service advisor to recommend a service. It’s quite another to present the customer with a picture of a part that needs to be replaced and a video that explains why that part is important and gives safety precautions. Seeing really is believing.
Mobile tablets allow service advisors to greet the customer in the service lane, conduct a multi-point inspection, get the customer sign-off and complete the service write-up process on the go. Spending more time with the customer helps to 11 build trust and pave the way for a better upsell process. Customers
can view service history along with any recall that may be needed on their vehicle. When a customer sees a checklist of maintenance items with a gradual progression of green to yellow to red, they feel more confident about approving a recommended repair.
pricing. If you really want to be transparent, have your salespeople beat these price shoppers at their own game. If a customer starts showrooming, a salesperson could whip out their tablet and search along with the customer, all while guaranteeing the lowest price.
Mobile tablets shine as a tool that can present visual information such as inventory videos, dealership videos, online reviews and other information that may be used in the decisionmaking process. Rather than attempt a hard sell, engage your ups by asking them about their needs and then pulling up information on why that vehicle and your dealership are the best solution for their needs.
Mobile tablets can streamline the F&I process. While your customers are waiting to see the F&I manager, hand them a mobile tablet that allows them to answer questions about their driving habits, view the menu, watch educational videos about products and drag and drop products into a customized package. Your customers will be thrilled because they will save time and feel empowered to make their own decision. If your dealership hasn’t integrated mobile tablets into your processes, now is the time. Increased transparency and customer trust are just two of the many benefits of going mobile.
Mobile tablets can also be used by salespeople to combat showrooming. This is when savvy customers come in to your showroom with smartphones and start checking out your competitors’
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19th Digital Dealer Conference & Expo: One For The Books!
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he 19th Digital Dealer Conference and Expo held in the magnificent Paris Hotel in Las Vegas, Nevada was surely a digital automotive experience to remember. The event, hosted October 5th-7th featured some of the most innovative speaking sessions and insight on how technology is changing the dealership-customer relationship. With over 1200 dealership personnel in attendance including those from the top 150 dealerships in the country, the Digital Dealer Conference allured some of the most forward-thinking individuals in automotive. The detailed 3-day agenda brought digital trends, automotive marketing strategy, best technology practices, and management skills into the spotlight to guarantee all attendees take back applicable knowledge and motivation to the dealership. The conference was off to an exceptional start following keynote speaker Grant Cardone (CEO of Cardone Training Technologies) and his compelling session regarding digital engagement, creating a following, and selling vehicles through social media. The energy amongst attendees on Day 1 of the conference set such a dynamic tone for the days to come. Speaker and E-Commerce Director at Jeff Wyler Automotive Kevin Frye boasted, “It is exciting to see so many fellow dealers take ownership of measuring the performance of their marketing efforts.” Proceeding to the start of the numerous 50 minute sessions, attendees were able to choose the most rewarding and relevant sessions based on their particular area of expertise and interest. Digital Dealer offered over 50 intensive sessions per day ranging in topics such as digital marketing, sales strategy, management skills, fixed operations, pre-owned, and data/analytics measurement. The ability to customize the conference experience by selecting sessions tailored to each attendee’s job title is what makes each Digital Dealer conference so exclusive and advantageous. “I strongly encourage dealers and dealer principals to come with their marketing teams to get the valuable first hand experience”, says John Iverson of John Iverson Chrysler after wrapping up at a session on automotive digital marketing strategy. Throughout the conference, the Digital Dealer Expo was open to all in attendance and the environment exuded such energy and innovation with over 120 exhibitors introducing products and developments to support digital technology in the automotive industry. The carefully selected group of exhibitors 13“attracted some of the most progressive dealers in the U.S.” says attendee Erich Gail (Cardinale Auto Group). Both exhibiting companies and dealership personnel alike were
enthusiastic about establishing new ways of incorporating technology in the automotive industry. The concept of collaboration was fully encouraged and valued at the Digital Dealer Conference. Guests were all ears during the Keynote Panel presentations like that of “Digital Decoded: A Smarter Approach to Digital in 2016” presented as a collaborative effort featuring Peter Leto (Google), Trace Przybylowicz (Facebook), Erich Gail (Cardinale Auto Group), Quincy Armstrong (Rusnak Auto Group), Rick Ricart (Ricart Automotive), and Jeremy Anspach (PureCars). This powerhouse panel had attendees on the edge of their seats as they listened to some of the most resourceful minds in the automotive industry come together to discuss upcoming technology trends. Then, the Peer Strategy Roundtables, introduced on Day 2 of the conference gave all Digital Dealer attendees a chance to collaborate with one another on strategies and problem solving. The Keynote Hall roared with conversation as various dealership departments eagerly discussed with peers the successes and obstacles of their dealerships. Though the 19th Digital Dealer Conference & Expo implemented three days of knowledge and innovation, it was not simply all work and no play! Digital Dealer hosted an exclusive dealership appreciation party at the extraordinary Drai’s Nightclub on the Las Vegas strip. Conversation continued over cocktails, entertainment, and a night encouraging a more casual atmosphere for attendees to connect. The Digital Dealer 19th Conference and Expo was a huge success and dealership personnel are quickly registering for the next conference hosted January 19th-21st, 2016 in sunny Orlando, Florida at the Rosen Shingle Creek Resort. For those who missed three days of intensive speaking sessions, valuable peer collaboration, and fun, the 20th Digital Dealer Conference and Expo is just around the corner. The 20th Digital Dealer Conference and Expo will kick off 2016 with some of the most inventive and informative sessions. The conference will feature keynote speaker Dave Anderson: sales and leadership training extraordinaire and author of Learn To Lead as well as the most technology-forward exhibitors in the automotive industry. For those seeking the knowledge, resources, and strategies needed for dealership success, the 20th Digital Dealer Conference & Expo is the place to be. Registration is now open! Register at www.digitaldealer.com
OFFICES IN ORLANDO, MANHATTAN AND FLORHAM PARK, NEW JERSEY • INFO@ROSENFIELDANDCO.COM
FOR THE LOVE OF THE CAR, THE BUSINESS AND YOUR BOOKS. DOES IT GET ANY BETTER? Visit www.RosenfieldandCo.com to find out.
Operations • Litigation Support Internal Controls • Risk Management Dealership Valuations
The Show Where Dealers Go Thursday - 3:30 p.m. EST Hosted by
David Villa 14
Succession Planning Mergers and Acquisitions • Attestation Tax and Advisory Services
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ARE YOUR WORKERS INDEPENDENT CONTRACTORS By Scott Lewis, CPA OR EMPLOYEES? BE SECURE! Firm Leader and Partner, Tax Services Rosenfield and Company PLLC
As a result of the passing of the Patient Protection and Affordable Care Act (PPACA), P.L. 111-148 (more commonly known as Obamacare), worker classification has become a big issue for employers. As there is a general mandate to provide health care for eligible employees, which is very costly, many employers are considering looking at ways to classify workers as independent contractors vs. employees. The IRS, under Revenue Ruling 87-41 has determined twenty common criteria to determine whether an individual is an employee or an independent contractor. Note that now twenty factors are needed to determine status, as individual circumstances usually dictate the weight assigned if challenged by the IRS. We will list some of these factors that would more closely relate to dealership operations. LEVEL OF INSTRUCTION; WHEN, WHERE AND HOW THE WORK IS DONE AMOUNT OF TRAINING DEGREE OF INTEGRATION WITHIN THE ORGANIZATION SERVICES RENDERED PERSONALLY CONTINUING RELATIONSHIP SET HOURS OF WORK AND FULL TIME REQUIRED PAYMENTS TO WORKER ON REGULAR BASIS PAYMENT OF EXPENSES ON BEHALF OF CASH OUTLAYS BY WORKER FURNISHING OF TOOLS AND MATERIALS AND SIGNIFICANT INVESTMENT BY WORKER WORKING FOR MORE THAN ONE FIRM AT A TIME AND/OR MAKING SERVICES AVAILABLE TO THE GENERAL PUBLIC HAVING THE RIGHT TO DISCHARGE AND TERMINATE
In the typical dealership, workers who may fall under some of the fact patterns above would be service technicians; vehicle drivers (for dealer trades/used vehicles/general runners); detailers and other support staff in the service department; and even salespeople. Great care must be exercised to ensure that these individuals are properly categorized. For example, you may have a journeyman technician, classified as an independent contractor, with their own toolbox, and you reimburse them for tools under a program, and give them a Form 1099 for services. Do they work at any other shops? Are they full time? They may be employees. Another example would be the retired individual that does vehicle drives to pick up dealer trades, auction vehicles and such, who receives a 1099. Are they working for any other dealership? Is their main source of active income coming from you? How are they handing their vehicle insurance? They may be an employee. 16 SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding can be filed by an individual or an employer to ask the IRS to determine the status of a worker under common law rules, as
described above. These are generally filed by individuals who believe they are employees and entitled to employee benefits. The decision by the IRS is binding. If determination is made that an individual being treated as an independent contractor is an employee, the employer doesn’t technically need to do anything, but needs to determine his risk factors in the event of an employment tax audit. The IRS does have a Voluntary Classification Settlement Program (VCSP) which was set up in 2011. It gives parties the option to receive partial relief from previous federal employment taxes, such as social security and Medicare tax, if they voluntarily reclassify workers as employees. To protect yourself as an employer, ensure you document the relationship among workers, as they pertain to independent contractors. Prepare and timely file Form 1099’s; and document the intended relationship(s). Be aware that if determinations are made that workers are employees, and intentional disregard for these rules are proven, a responsible person could be made liable for employment taxes, i.e. you as the business owner. At the end of the day, factors regarding who has control over individual behavior, financial resources, and the relationship between the parties will determine whether there is an employee or independent contractor situation.
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hey call him “The Pineapple Guy,” and he thinks your commercials suck! Meet Brian Barlow CEO and Creative Director of Pineapple Advertising, he’s on a mission and he’s single-handedly plotting a crusade to change car dealership advertising forever! You’ll find Barlow most days with his head in the clouds – literally flying from state to state urging dealers to stop advertising and start engaging with better creative, better decisions with a greater focus on non-traditional “creative” ad spend. About 10 years ago Barlow was hired by mid-size auto group to rebrand and redistribute their advertising scheme, Barlow did and within 6 months Barlow was on the speed dial of many dealerships wanting access to his creative mantra. “I don’t think like a car dealer, I think like a consumer. I want to be engaged, I want to laugh, I want feel something, I want you to earn my decision and 98% of businesses, particularly car dealers, don’t know how.” Barlow has a formula and it doesn’t involve “now’s the best time to buy” or “we have the best price, best selection, best service” or “biggest event ever this weekend!”
“That’s old school advertising – dealers don’t think TV is working, it’s not for them and it’s because of them. They don’t give the viewer anything to watch,” cries Barlow, who is now in his tenth year and has become one of the most sought after speakers in the auto industry with his in your face, brutally honest visual presentations usually given in a t-shirt and jeans. His passion unmatched, his results undeniable by his work. The Pineapple Guy doesn’t wear suits, ties or anything else that suggest he’s putting on a sales clinic. His style is just that, his. “I tell prospects and the like all the time that if your marketing person is in a suit or wearing a tie and he’s giving you creative advice, turn the other way.” Barlow also recalls walking into a dealership in Wichita, KS a few years ago: “As soon as I walked in, the managers and owners start-
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ing laughing at us – I, of course, was a little concerned but played it off. I later learned they had previously discussed wanting their next ad guy to be a guy wearing jeans and a t-shirt, we were hired.” The main ingredient to Barlow’s successful formula and platform is the storytelling aspect of marketing. Barlow has created his own platform which he speaks about called “advertising is a four letter F word” - you’ll have to engage with Barlow to find out what that word is, but we can tell you Barlow’s method of storytelling is what makes him and Pineapple so unique. They create commercials that engage by how they shoot, how they edit, how they incorporate music and how they engage that particular demographic. Pineapple work is in a class all by itself which is why Barlow is in demand nationally. He won’t share his 3 tier formula for print but we can tell you after knowing Barlow, watching him speak and seeing his work any dealership looking to take the next step in their advertising needs to consult Barlow. His biggest success story remains a campaign called “the credit cruncher” - “it was for a ‘buy here pay here’ dealership, they wanted to do the typical your approved and bad credit is good credit advertising – “I told them no, not if I was involved and moments later, I sang the credit cruncher creative as they all thought I was crazy, they were right and so was I.” Today Barlow continues to challenge dealerships everywhere – his demand; stop approving “free tv station produced” commercials and start engaging customers with substance and tactical thinking. “Old school advertising is dead – there’s only 3 mediums you need to have in your engagement plan to get the most out of your ad dollars, otherwise your dealership is wasting money, wasting opportunity and wasting away.” That’s Barlow in a nutshell, the truth, the formula and the hook.
Contact information: Email: barlow@dealersolutions.info Twitter: @PickPineapple
REDEFINING REINSURANCE by Tim Byrd I have a unique business model, in that our company specializes in reinsurance for all kinds of car dealers-from New Car Franchise to Buy Here Pay Here dealers, we work with them all, nationwide. I spend a lot of time explaining to one segment of the car business the “Why” you should have a reinsurance company. In a nut shell it comes down to more dealer income and better control. Owning a reinsurance company as a car dealer makes sense in so many ways. For months I have been hinting at a change that is taking place in reinsurance. If you could put your finger on one issue that, as a dealer, you would have in your wish list, it is having access to the money that is reserved so that you can invest back into your business, pay down your floor plan, buy another store, build a new service center, etc... The way administrator obligor reinsurance works (which in my opinion is the ONLY way to go), is you begin with a fronting insurance company. When you write a warranty or Vehicle Service Contract, that contact is between the fronting insurance company (also known as the administrator) and the customer. The fronting insurance company issues the policy to the customer and assumes the contingent liability. The premium is ceded to your reinsurance trust account. Premium reserve is guaranteed by the administrator fronting insurance company to always be available for consumer claims until the contract expires.
“Times are changing, even for reinsurance.”
So, if you write a 12 month service contract, it takes 12 months for it to fully earn out. 72 month contracts will take 72 months, which are the majority of the new vehicle service contracts. The fronting insurance company is also on the hook for all claims that exceed reserve.
Until now a dealer who wrote, for example, $1,000,000 in premium their first year, because of the way contracts earn out, would have access to about $70,000 after the first year. About $250,000 the second year. The dealer can see his reserves increase by around $1,000,000 per year, but can only tap into a small percentage of that. That is starting to change. With accelerated profit accessibility, the new reinsurance model makes a huge leap in helping dealers with their biggest reinsurance frustration, limited access and poor investment income on reserve. What could that mean for you? Well, if your loss ratio is estimated at 40% after the first year, under the new reinsurance model, you could access $600,000 instead of $70,000. After the second year it could be $1.2 million instead of $250,000. With these new options becoming available, dealer growth and expansion will greatly improve through this proven capital resource. It may be time to take a closer look at your Dealer-owned Reinsurance Company. Times are changing, even for reinsurance. About the Author
Tim Byrd is an author, 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, Dealership and F&I Development. A 25+ year veteran of the car business, Tim is a trusted advisor to many car dealers. Tim has been featured many times in AutoSuccess, Dealer Solutions, The Virginia Independent News, Special Finance Insider, Around 20 the Commonwealth, The BHPH Report, DealerELITE and the Dealer Business Journal. Tim is a sought after speaker and co-author of the #1 Best Selling book “Unfair Advantage” and the just released new book Race to the Finish Line. First and foremost, Tim is a Christian man whose values, he strives, are a reflection of those of his Lord and Savior Jesus Christ. Tim can be reached at www.DealerRE.com or by calling 804-824-9533.
Grit: The Secret to Sales Success by Laura Madison
What are the causes for sales success? Many would say talent or a natural gift for selling. It’s about being able to build rapport, master relationships, and gracefully overcome objections. That’s a fine answer but it begs another question: what is talent? Do we attribute sales talent to genetics, the willingness to learn, or experience? Recent research, however, may shift our understanding of what it takes to succeed in sales. A relatively new concept, grit, may provide a much clearer answer to the question of what causes sales success. Grit is passion and perseverance for very long-term goals…Grit is “living life like it’s a marathon, not a sprint.– Angela Lee Duckworth
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Angela Duckworth is a lead psychologist catapulting grit into the spotlight, and someone those of us in sales can learn from.
How Does Grit Lead to Sales Success?
The Science Many studies, including those conducted by Dr. Duckworth, are showing that grit is the biggest factor to indicate which students continue attendance at the competitive WestPoint Academy, and which salespeople stay with their job and make the most money. Again, grit was a bigger indicator than social intelligence or IQ. What’s also important about the science behind grit is that there is evidence that talent doesn’t make you gritty. In fact, studies have shown that talent is unrelated or inversely related to grit. In sales, this all can begin to make sense. Success doesn’t necessarily depend on your ability to make things happen quickly or to know the most about a certain customer. It might actually have to do with perseverance and stamina.
Get Gritty
Grit is defined as perseverance and passion for long-term goals. Automotive sales is characteristically competitive, challenging, and scattered with setbacks. People who stay in this challenging environment are masters of grit—long-term thinkers who demonstrate resilience after a slow month and endurance throughout a busy summer season. Grit also requires a certain level of optimism, a resolve to move forward. Grit means following through; doing the little things every day that lead to eventual sales success. Following up longterm unsold customers, making repeated calls for subsequent repeat and referral business, networking in the community. Beyond the basic discipline to do the right things, a salesperson’s passion and perseverance for very long term goals are an incredible indicator for career sales success.
So how, as an industry, do we get grittier? It begins with hiring. When hiring salespeople, we often look for competence, experience, intelligence, and good communication skills, but a grittier salesperson will likely outperform peers that possess all of these other traits. Along with a resume, dealerships should require applicants to fill out grit evaluations that can be found very simply online. Interview questions should be more concentrated on this individual’s perseverance and long-term focus. And finally, in regard to how we mine grit out of the salespeople we presently employ, the science has shown us very little. We do know that a focus on growth and improvement can encourage more grit, so creating an environment where this is present and celebrated may enhance the grittiness of salespeople.
Laura Madison is the National Director of Sales for Alan Ram’s Proactive Training Solutions and owner of LauraDrives.com.She is a former a car salesperson, “Laura Toyota,” best 21 known for her use of social media and personal branding. Laura’s has been featured in Automotive News, Advertising Age and Edmunds.com for her unique marketing and self-promotion efforts.
Strategies for the Modern Dealership The modern dealership requires a very specific set of strategies to remain competitive in the customer experience economy. Today’s customer is empowered and informed, spending an average of 16 hours shopping online researching vehicles and visits fewer dealerships before buying. The cost for dealers to acquire a new customer remains high, so it is mission critical for dealerships to focus on leveraging their resources to reach more in-market consumers with the right messages at the right time.
Engaged Leadership and Employees Engaged leaders attract engaged employees, and customer experience is inextricably linked to employee engagement. In fact, the number one best predictor of successful employee engagement, satisfaction, and commitment is consistent, daily leadership in the workplace. It has been said, “people join organizations and quit their leaders.” Consistently making time to listen to your employees, and hearing their suggestions for improving your dealership, will go a long way toward re-engaging them. The revenue lost from disengaged employees is well documented, so taking the time to communicate the mission and vision of your dealership to your employees, and empowering them to deliver your brand promise, is a worthwhile endeavor. Engaged leaders make time to listen and discover employee challenges, address concerns, and hear ideas for making your dealership more successful.
Social Advocacy How many more cars could your dealership sell if you had the power to take your best customer experience and your showroom everywhere automotive shoppers gather online? The people with the potential to be your best dealership advocates already work for you, and in today’s connected world, the most effective way to engage consumers is via social media. On average, when employees share something—anything—with 22
their social networks, they reach 20 times more people than a typical dealership branded post, regardless of their follower count. Since more than 90% of consumers don’t trust brand messages, your employees have the ability to create a credible, authentic, and effective marketing channel, something you cannot do without them. Rewarding employee social advocates is a strong motivator for participation, and inspires a healthy spirit of competition at your dealership.
Data-Driven, Intelligent Marketing Automotive consumers begin their shopping journey online and visit fewer dealerships before purchasing a vehicle. Modern dealerships need an executable strategy for connecting with more in-market customers during the research phase of the buyer journey. Without the opportunity or tools to access intelligence data (the online, brand-related consumer interactions with their brand via shopping, review, and social networking sites) dealers are at a disadvantage. Data-mining tools allow you to leverage the reach of your entire organization and close the gap between your brand and your customers with relevant, credible, and timely messaging. Make addressing these foundational areas of your dealership marketing strategy a priority for 2016 and watch your business grow! For information on how MotoFuze powered by FuzeCast can help, call 1-855-3132452 or visit us on the web at motofuze.com.
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January, 19-21, 2016 Orlando, Florida
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WHERE IS THE LOVE? by Mat Koenig
I love all kinds of music and usually you’ll catch me on Periscope or Blab.im sharing sales tips form my Mercedes-Benz while blasting hip-hop music. And today, this made me think about a little throwback tune from the Black Eyed Peas: Where is the Love. This made me want to ask you folks a few questions: When is the last time you told someone on your team how much you appreciate them? When is the last time you gave someone on your team praise publicly in a sales meeting, in front of a customer, or on social media? We joke about being thick-skinned as salespeople but the truth is, we all want approval from other people. We all want to feel valuable, appreciated, loved. What’s really amazing is the effect that this approval will have on the morale of your team and ultimately your bottom line. Don’t believe me? Today, when you get done reading this story take a moment to write down one thing you appreciate about everyone on your team. Before the day is over today, walk around the showroom and shake hands with, or high five, or fist-bump every one of your people and tell them thank you for their hard work regardless of how many cars they have on the board. Tomorrow in the sales meeting, take a moment to recognize the accomplishments of a someone publicly. If you make this a habit every day you’ll find your people will be performing even better because they will all want that public recognition from you. Start showing your people some love and I guarantee, they’ll be showing the love in return. Mat Koenig is an Automotive Industry Veteran, prolific speaker and the author of multiple books on sales and personal growth. He is the CEO of KonigCo & Buscador de Auto helping connect Dealers with Buyers in English and Spanish. For more information on Mat Koenig and his companies visit www.konig.co/mat
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Deadly Sins of Recruiting Auto Salespeople
’ve been recruiting and training auto salespeople for a Metro Atlanta auto group since 2009, and have tried myriad approaches to find the best candidates. I’ve tested about all methods at finding the cream of the crop, and in doing so compiled a list of things not to do; better known as “The Seven Deadly Sins of Recruiting Auto Salespeople.” The following is my list of what not to do when looking for auto sales reps which will save you time and money. Not to mention you’ll find the best possibilities in your market place.
Deadly Sin #1: Sifting Through Resumes Resumes are a waste of time. Period! In the beginning I would create a post for salespeople and then wait for the resumes to pour into my email inbox. I would then proceed to read each one to find the golden nuggets. Some people pay money to have their resume written for them by a professional resume writing company which means the person writing the resume is the one that you should be interested in hiring. 30 years ago nobody had a resume in this business. You got hired by answering an advertisement in the newspaper, showing up at the dealership (or hotel) and interviewing with a manager. That model still works today with the difference being job boards as opposed to newspapers. I’ll look at their resume at the time of the interview, but it carries little weight with me.
Deadly Sin #2: Doing Phone Interviews The second deadly sin parlays with the first sin. After reading a resume to determine if I thought that the applicant could be a fit, I would call them to do a phone interview. In terms of time, this step could eat up a considerable amount of time (time is money right?). Leaving messages, doing phone interviews, setting appointments and then getting no shows all adds up to a significant time investment. I don’t agree with the ole recruiting saying of “Hire slow, but fire fast.” I want to hire fast, but at the same time make a prudent decision based on several managers in on the final selection. When you have a potential star they stand out in the face to face interview, and there’s no reason to send them home only to come back for a second interview (they might not come back). Pull the trigger and get the HR ball rolling.
Deadly Sin #3: Not Being Prepared to Interview The old saying of, “You don’t get a second chance to make a good first impression,” holds true in recruiting salespeople. When potential employees show up to impress, you need to be prepared to get them through the interview process. It’s like someone coming in to buy a vehicle and they are waiting around all day to take delivery. Potential employees shouldn’t have to wait 27 around to be interviewed. You told them when to come in and they showed up. Be prepared by keeping their wait time down to a minimum.
Deadly Sin #4: Being Interviewed and Hired by One Manager. The best case scenario is that all the mangers spend some time interviewing a potential candidate but that’s not realistic. I say three is the magic number and then all three managers need to be congruent in their decision. If one of the managers is adamant about not bringing someone on board then pass.
Deadly Sin #5: Casting a Small Net In order to find the best of the best you need to cast a wide net. Don’t post to Monster or Careerbuilder (I don’t use either) and expect to find the top guns. You need to post to several job boards to find the right ones (like in sales, it’s a numbers game). My top three favorites are Craigslist, Ziprecruiter and Indeed.
Deadly Sin #6: Writing Uncaptivating Posts Writing dull and boring posts will get overlooked and won’t capture a potential hire. Your post needs to stand out and captivate the prospective employee.
Deadly Sin #7: Hiring Retreads Hiring retreads is a mistake unless you can find the exception to the rule. The rule is, most car salespeople that have been to several other dealerships won’t be at yours very long either. They bring a ton of baggage and are usually infected with the disease called “Stinkin thinkin.” Look for people with zero car sales experience, but with an aptitude for success. Most of all the successful long term people I know in this business never sold cars before getting into the car business.
This is not your typical “Direct mail.”
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Pick Your Battles How to avoid the greatest mistake of the year By Clint Burns
As the Holiday Season arrives in full force, Dealers around the country are pushing to close the year strong. At the same time they’re also planning for the next year. Of course, that means it’s time to pick your battles and strategize.
What is the biggest mistake that most Dealers make when planning for the next year? It’s not that they don’t know about the latest tech phenomenon, and it certainly isn’t because they don’t set lofty goals. In fact, I think the biggest mistake dealers make is setting goals that are too high and broad. Their goals are not focused enough or well thought out.
“Wait, I thought everyone says to set high goals,” you might say. You’re right, they do, but what they often fail to communicate is the difference between setting broad goals and setting focused goals. More focused goals are not necessarily smaller, they are simply more refined.
The problem with big, vague goals is that people don’t understand what they’re committing to. It’s like when you were in school and you tried to write a report on the subject of “Business,” which you thought was a great idea…until you started writing it. Then you realized it was impossible; there’s too much to cover in report! There was no possible way to write anything organized or effective with out narrowing down what you wanted to cover, you needed a clear objective of the report. Just like your report needed to be focused, so do the goals for your business. Otherwise, your team will either be 30 uncoordinated, or become frustrated because unclear direction results in failure.
So how do you know if your dealership’s goals are focused or not? Ask yourself these questions. 1. Can you explain it in detail, or do you speak about it in general terms? It’s simple, if you can’t explain your goals to your team clearly and concisely then it won’t effectively motivate anyone. Your employees are the ones who grow your business, so it is key that they are motivated and understand the steps needed to achieve the goals that have been established. Everyone must be unified working towards a goal that makes sense.
2. Can you think of 100’s of ways to reach your goal? For example, if your goal is simply to sell increasingly more units each month then that’s too broad. Why? Because there are too many ways to get there. You haven’t told your team how you want them to achieve that goal. Do you want to focus on having your sales team improve their time management, gain more control of your showroom floor (using an up system), or ensure that more test drives happen at your dealership? Surely you also want your managers to be more involved, right? There are nearly endless possibilities for improving your business, but you need to choose what to focus on and communicate it with your team. It’s fine to tell your team that you want to aim for moving a certain number of units each month, but you also need to be able to tell them specifically what they need to do to reach that goal. Otherwise managers and team leads will take it upon themselves and go in every possible direction to reach that goal. If that happens,31 no one will be working together and you will probably not hit your goal. You’ll just be left wondering…what happend?
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