FIADA 1940-2015
Y E A R S
JANUARY 2016
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Information and Insight for Florida Used Car Dealers
Test the strength of your FIADA/NIADA membership with new member benefits and discount programs.
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FULTON, MO PERMIT NO. 38
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Dealer Independent
MAILING ADDRESS 1840 Fiddler Court Tallahassee, FL 32308 TELEPHONE (850) 385-2712 (800) 237-0448 FAX (850) 385-3251 WEBSITE www.FIADA.com EXECUTIVE COMMITTEE Jim Winterick, Sr. President Lisa Compagno Senior Vice President Dino Mercurio Chairman of the Board Govinda Romero Secretary Scott Lanier Treasurer Brad Joel Regional Vice President Christopher Leedom Regional Vice President Steve Marbais, CMD Regional Vice President Brandi Noegel Regional Vice President Phil Risley Regional Vice President FIADA STAFF Lisette Mariner, CAE Executive Director Terry Myers Educational Instructor Jason Berthiaume Education and Marketing Coordinator Amelia Tillman Membership Director Christy Taylor Editorial/Advertising
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FIADA • 1840 Fiddler Court Tallahassee, FL 32308 (850) 385-2712 • Toll Free: (800) 237-0448 Fax (850) 385-3251 • www.FIADA.com The Independent Dealer is a publication of: Florida Independent Automobile Dealers Association, 1840 Fiddler Court, Tallahassee, FL 32308 The magazine is published every month in Tallahassee and distributed to Florida new, used, wholesale and lease/retail car dealers. Advertising rates are available upon request. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Independent Dealer or the Association. Likewise, the appearance of advertisers, or their identification as members of FIADA, does not constitute an endorsement of the products or services featured.
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Contents January 2016
For members of the Florida Independent Automobile Dealers Association
C O L U M N S & F E AT U R E S 4
President’s Message Jim Winterick, Sr.
6
Executive Director’s Message Lisette Mariner, CAE
8
Discretionary (County) Sales Surtax Updates Get a crash course on calculating the correct sales tax on a sale as well as an update to the county sales surtax list.
10
Will Reporting a Claim Raise Your Insurance Rate? The answer may surprise you. Insurance Agent of Record Kevin O’Connor e xplains why the right course of action is to report the claim immediately.
12
Member News
14
How to Grow Your Business in 2016 Looking for a strategy to increase sales and build your business this year? Take a look at this plan from Steve Gordon.
20
Legislative Update FIADA is ready to go at the start of the 2016 Legislative Session.
22
Use the Force Check out the list of money saving coupons and discounts exclusive to FIADA members.
26
Competing with Franchise Dealers and Coming Out on Top Take a lesson from the franchise dealers when it comes to converting sales to service and selling my cars as a result.
30
Industry News Don’t forget to Like us on Facebook! Check out our page and follow us at www.facebook.com/FLIndAutoDealersAssoc January 2016 — Independent Dealer — 3
FROM THE PRESIDENT
The FIADA Is Committed, Are You? BY JIM WINTERICK, SR., FIADA PRESIDENT
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veryone knows the story of bacon and eggs. The chicken was involved, but the pig was committed!! Which are you? Involved or committed?
legislation nationally, statewide and locally that will affect our business success. No one else is there when the politicians or bureaucrats come up with ways they think will better our business. We are the people that keep them informed and educated. Our business is the most legislated and rigidly enforced business I can think of. We as used car dealers must stand together or be buried by the red tape of compliance. We most certainly agree the consumer should expect certain things. Redundant compliance and needless verification to protect our business from zealous litigation are always of
Many are involved in the used car business. Whether you are an independent retailer, wholesaler, auto auction, DMS provider, new or used parts seller, technician/repair facility, new car dealer, leasing company, towing service, insurance company, bank/finance/floor planning company, payroll processor, advertising seller, website developer/provider, consumers, consultant, etc. I am certain I have left some out, but the Everyone knows the story of bacon and eggs. The point is there are a lot of businesses and people involved in the business of chicken was involved, but the pig was committed!! the Independent Dealer. Yes, we used Which are you? Involved or committed? car dealers have quite a support group vying for our success and theirs. We our concern. If you ever wonder, how did this get through support many groups and outside businesses through our the legislature? How did this get into law? Where did they capital investments and precious time. Time we take from the come up with this idea? Whose bright idea is this? How can people in our personal lives that add quality to our lives, our I stay in business and comply with this? The answer to those family and friends. questions: You need to be involved. It is not someone else’s job to protect your interests, it is yours. You say, “but I am But who watches out for you, the Independent Dealer, the only one voice.” Not so if you join us! Together we can keep Used Car Dealer? Who holds your best interest in high our businesses viable for ourselves and those to come. regard? The FIADA does. We are dealers organized for the common benefit of each other; dealers working for dealers. We are the voice of the Independent Dealer! We are the The FIADA is committed. Our mission is to represent the Independent Automobile Dealers of Florida. We are Independent Dealer in all matters concerning our shared committed to your success! Your membership is a small price businesses. Our shared vision of successful businesses to pay. Join us and assure we will all be able to say I’m a used providing safe reliable quality transportation for Floridians. car dealer and proud of it! Our ability to provide good jobs to our fellow Floridians. Statewide we work to support Florida used car dealers. In I wish you good health and great prosperity in 2016. Tallahassee and in local jurisdictions, we are the voice of the Independent dealer. Jim Winterick Sr.. FIADA President We keep our members informed on the latest up-to-date
4 — Independent Dealer —January 2016
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EXECUTIVE DIREC TOR’S MESSAGE
2016, Here We Come BY LISET TE MARINER, CAE, EXECUTIVE DIRECTOR
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s we close the old and bring on the new, I am filled with thoughts of what’s to come. What are my goals this year? Did I attain my goals last year? My, where does the time go?
build on the future. Reach the dealers of our state to share the amazing benefits of membership. Share the commitment to the industry that the association and its board have to independent dealers.
Recently I’ve heard from dealers that membership doesn’t cost I was fortunate this year to have the opportunity to take a anything. One of our new dealers had already opened and spent break and spend some much needed time with my family. I some money on things when they received their coupon book. unplugged and recharged my battery. We did fun family things In one month they like ice skating, had already saved going to the movies Thank you to those that have made the commitment $350. They even and walks together. got a couple of to join the FIADA and support this industry as well as No big vacation places to refund plans, just a few receive the many benefits. the money when days to be a family they produced the at home. What a coupon. So, it really doesn’t cost anything to join! You can make great feeling. No stress, no worries, just time to have fun. money just on the coupons alone. (See the list on page 22). Now I’m back with great ideas, amazing potential for growth Thank you to those that have made the commitment to join the and am rejuvenated to help guide the path of the FIADA. I FIADA and support this industry as well as receive the many hope you had the same opportunity. If not, I would invite you benefits. Share your stories with me at lisette@fiada.com. For to take a few days to stop your day-to-day and assess where those that haven’t taken the leap, I hope you will venture out you’re going and how you’re getting there. Take a breath. and discover what you’re missing. We’re here for you too! Share what keeps you up at night, so we can help you achieve your Last year we saw a growth in membership of 5 percent. goals in 2016. Together with NIADA we have made a commitment to
WHAT’S IN IT FOR YOU? Online Dealer Resources
Continuing Education
Legal, Legislative and Regulatory Benefits
Convention Discounts
Networking Opportunities
Technical Assistance
Auction and Services Discounts Publications
SINCE 1940
NIADA Membership and Benefits and so much more!!
FIND OUT MORE ABOUT THESE BENEFITS: WWW.FIADA.COM | 800.237.0448 6 — Independent Dealer —January 2016
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January 2016 — Independent Dealer — 7
BACK TO BASICS
Discretionary (County) Sales Surtax Updates BY TERRY MYERS
When the calendar changes at the start of a new year, so do some discretionary sales surtaxes. Make sure you have reviewed the current rates before inking your next deal.
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ach year a new Discretionary (County) Sales Surtax report is issued. Did you upgrade yours? Each county has at their discretion a right to add a county tax on top of the state six percent sales tax. The amount is decided by residents of the county, by vote. The form, DR15-DSS in PDF format, is made available on the Internet at the Department of Revenue’s website. Currently, the 2016 link is http://dor. myflorida.com/Forms_library/current/ dr15dssr15.pdf. It is the dealer’s responsibility to work from each year’s update. Look for any counties printed in bold. What that signifies is the county has made a change from 2015 to 2016. Some changes are percent changes and some are an extension of deletion of the expiration date. For vehicles titled and registered in Florida, the dealer will charge and collect two taxes, unless the dealer obtains proof it is a non-taxable amount. The Florida sales tax of six percent is charged on the full taxable amount. The county tax percentage is also charged on a maximum taxable amount of $5,000.00. The remaining taxable amount above that is exempt from the county tax.
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CASE STUDY 1
A $15,000.00 sale, less a $5,000.00 trade equals $10,000.00 taxable. The state sales tax is six percent of the $10,000.00, which equals $600.00. The county tax is charged at the rate of the county where the customer’s vehicle will be registered, not where the sale takes place. Using the current DR15-DSS document, if the vehicle will be registered in Orlando, which is Orange County, the rate is .5%. Onehalf percent times $5,000.00 is $25.00. The total state and county tax in this case would be $625.00. County rates are as little as .0% up to 1.5%. Each sale stands on its own, for sales tax purposes.
CASE STUDY 2
A $3,000.00 taxable sale times six percent is $180.00 plus the Orange County rate of .5% times $3,000.00 which is $15.00, for a total state and county tax of $195.00.
CASE STUDY 3
A $30,000.00 sale times six percent is $1,800.00 plus .5% times the $5,000.00 cap equals $15.00. The total tax is $1,815.00. The dealership is encouraged to visit the Department of Revenue website for the excellent tutorial tools found
at http://dor.myflorida.com/dor/taxes/ education.html. Visit this site to help you better understand more about the various requirements imposed upon your business. My visits with various dealerships throughout Florida has exposed a lack of knowledge needed to properly comply with the many various taxing requirements imposed upon the dealerships. The dealer may also want to download GT-400400, Tax Information for Motor Vehicle Dealers, (http://dor. myflorida.com/Forms_library/current/ gt400400.pdf) to gain even better insights into the requirements the dealership must comply with in their day-to-day operations. Topics include: How would a non-Florida sale be taxed or not? How might the new tire or new or remanufactured tire fee be handled? What about employees? What is the 20 day rule for employees? Are warrantees taxable? Sales tax training is about three hours in the two-day PreLicensing class at the FIADA Dealer Training School. Dealers may want to register and send an employee to one of the future twoday training classes, to get up-to-date on the many elements of the industry. They will receive an appropriate CERTIFICATE OF ATTENDANCE. Contact the FIADA at (800) 237-0448, x1 and Jason or Amelia can help with the registration. It is only $99, each, when preregistered and prepaid. Private, customized classes, on any topics you would like covered in layman’s language, at your location, are also available. Contact me directly at the number below, for pricing and scheduling. Terry LB Myers is an author, lecturer, FIADA instructor and FADS owner/instructor. Terry can be reached at (727) 804-7375 or tmyers@ floridaautodealerschool.com. Feedback is appreciated and encouraged. Copyright 2016.
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KEYS TO INSURANCE
Insurance Predictions Will Reporting a Claimfor the New Year Raise Your Insurance Rate? BY KEVIN O’CONNOR, INSURANCE AGENT OF RECORD
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sawexcited this cartoon the other and as an insurance am to announce theday resurrection of “Keys to agent I just had to laugh. In the years I’ve Insurance,” a column I wrote for30+ many years inbeen this in the insurance business, one of magazine throughout the 1990s and up until 2005. The the biggest misconceptions I haverelating to the insurance column touched on the subjects encountered is that it may make needs of the non-franchised motor vehicle dealer. sense to avoid reporting a claim to keep from having your rates Starting this month, we will be doing a quarterly edition increase. I’ve had a couple situations of the column. We plan to discuss subjects such as risk between carriers and recently management ideas toclients help reduce your insurance costs and that madeunnecessary me think it’sclaims, time tochanges write in insurance market eliminate about the subject. are two conditions, trendsThere in pricing and coverage availability, new major fallacies with this mindset. products available to the dealer industry and more.
Every insurance policy I’m awareyear of in our business, This past year was a challenging has a common policy condition that especially here in Florida. A new “wind modeling” system requires a report ofwhich any incident to changed the way was implemented completely your carrier. carriers Most oflook the people whoareas. This new system at certain receive this magazineidentified carry a Garage that non-coastal areas had Liability policy, so I’ll focus the moreon hurricane exposure than was wording in that form for purposesbelieved and pricing previously of this topic. of policies were revised accordingly. The The Garage Liability policy that claims from the vast majority of carriers 2012’s use discusses claims reporting Hurricane in SECTION VGARAGE Sandy had CONDITIONS. Section A.2Duties a devastating In The Event Of Accident, Claim, effect on the Dealers Suit Or Loss clearly states that the insurance has Open company Lot insurance no duty to cover you unless you complymarketplace. with the terms As of a this section. In a “nutshell”, it tells you that: result, the insurance carriers are now • You must give prompt notice any accident, lookingofmore closely atclaim, flood suit or loss to the company. They than expand onbefore this telling you exposure ever making 10 — — Independent Independent Dealer Dealer —January — January2016 2014 10
what you havepolicies to report them, that dates, locations etc. it difficult to find ontodealers never had an • also states that you changes can’t assume anya obligations issueItin past years. These caused number of or make any payment to the market insurance companies to withdraw from the Florida other party and expect the or limit what they offer causing a supply and demand issue insurance to honor those which subsequently raised rates. company On the positive side, the or obligations. You are insurance industry haspayments record surplus capital thanks in tocatastrophe cooperate with their large part to lower thanrequired expected losses over investigation and provide whatever the last few years and increased investments yields. Most documentation requested. of the insurance industry analysts expect the trend of • Lastly, in the event of near a theft, increasing rates to slow or even reverse in the future. you must promptly report it to to Unfortunately there are no crystal balls to tell us what expect in 2014. All we authorities. can do is keep a close eye on the industry and do our best to keep the readers of this column ahead of the curve. I see it all too frequently that a dealer tries to handle the claim on their own so as to have itBoard affect On a personal note, I wanted to thank thenot FIADA their insurance. The biggest cause of Directors for the vote of confidence in electing us their for concern here isprofessionals the word prompt. Agent of Record. Our team of insurance Prompt not aitdefined in specialize in your industry andismake our jobterm to know the policy, and it can mean wildly how your business works and understand what your different to different people. dealership needs to best protectthings your assets. We are
available for questions from any association member The bigwe concern thatbest to whether they are clients or other not and will doisour while you may be able to the answer those questions in a completely impartialmake manner. damaged party temporarily happy by offeringisthem money to fix We hope that Keys to Insurance an informative andthe damage or even fixing it yourself, interesting column and proves to the readers that insurance you never know when that same can be fun. party decides that their neck started to hurt or a passenger comes out of the woodwork with an injury.
Kevin O’Connor of Dealers Insurance Services, Inc. is the You’ve given your twoinsurance ways to FIADAnow Insurance Agentinsurance of Record.company If you have get out of the claim. The 30 to 60 days you spent trying to related questions, contact FIADA at (800) 237-0448 or visit make this “go away” now put you outside of their definition the DIS website at www.dealersinsurance.com. www.fiada.com www.fiada.com
of prompt, and the fact that you tried to settle it on your own broke the terms of the policy. This situation often can end in two words… CLAIM DENIED! This is a common situation and it’s normally driven by the fact that the dealer is trying to protect their coverage. By doing so, that same dealer has opened themselves up to much bigger potential problems.
Don’t get me wrong, it can happen. There are a number of issues that can quickly cause a carrier to fall out of love with an insured: • “Frequency issues” many claims in a short window. • “Severity issues” an abnormally large loss that could have been avoided • Claims where an undisclosed employee was driving or worse yet an undisclosed family member or friend. • Claims that fall outside the normal operations that the business should be doing based on the information gathered on the application. In closing, always fully disclose to your agent what you’re doing and who you’re doing it with and let him do his job. If done properly, your insurance company will have little or no reason to penalize you after a claim. Don’t let yourself get into the “I better not turn this in” trap! You pay your premiums for a reason. Kevin O’Connor is the FIADA’s Insurance Agent of Record.
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SINCE 1940
FIADA is your number one source for advice and information. Technical questions, legal questions, regulatory questions...bring them on!
Our network of industry veterans, professionals and consultants can help you find the answers you are looking for. Members can call us anytime at (800) 237-0448 or access our online resources 24/7 at www.FIADA.com. It pays to be a member! January 2016 — Independent Dealer — 11
MEMBERSHIP NEWS
New Members
DECEMBER 2015
BROTHER AUTO MAX Orlando, Florida Iyad Muhanna Sponsor: FIADA
DUNCAN’S AUTO SALES, INC Key West, Florida SHEILA DUNCAN IRBY Sponsor: DMV
NINJA AUTO COLLISION Davie, Florida Isaac Castro Sponsor: Terry Myers
TRADE BUDDY LLC Brunswick, Georgia Travis Ostrom Sponsor: Jason Little
CENTRAL FLORIDA PULL AND PAY LLC Orlando, Florida Vanessa Kaleiwahea Sponsor: Terry Myers
KEPT MOTORS LLC Lake Placid, Florida Theresa Fordham Sponsor: Kevin Scott
PLEDGE 5 FOUNDATION INC, DBA COMMUNITY OVERDRIVE Gainesville, Florida Jason Bowman Sponsor: Robert Reynolds
YOUNES INVESTMENT INC Kissimmee, Florida Jorge Rodriguez Sponsor: Amelia Tillman
COASTAL MOTOR SALES Milton, Florida Dewey Mars Sponsor: Don Scott
Renewing Members
LICENSE PLATES AND FRAMES Windermere, Florida Jacklyn Shroff Sponsor: Amelia Tillman
RADIX AUTOS & LOGISTICS LLC Jacksonville, Florida Kunle Ayanjoke Sponsor: Terry Myers
Rejoining Members DECEMBER 2015 HERTZ CAR SALES Winter Park, FL Kevin Hancock Sponsor: Amelia Tillman
DECEMBER 2015
40+ Year Members Manheim Lakeland Manheim St. Pete
Lakeland, Florida Clearwater, Florida
30+ Year Members Car Collection of Tampa Manheim Pensacola
Tampa, Florida Pensacola, Florida
20+ Year Members Integrity Auto Sales, Inc. Manheim Daytona Beach Manheim Tampa 10+ Year Members ADESA Jacksonville Appearance Plus Auto Sales dba C & C Cars Car-Time, Inc. Dixie Motors LLC Family Auto Mart, Inc. Florida Autosport, Inc. Galeria Auto Mart, Inc. Gibson Truck World Holt Auto Sales, Inc. Manheim Central Manheim Orlando Neal’s Wheels Off Lease Only Reliable Used Cars, Inc. dba Deland Reliable Cars
12 — Independent Dealer —January 2016
Port Orange, Florida Daytona Beach, Florida Tampa, Florida Jacksonville, Florida Pinellas Park, Florida Bunnell, Florida Live Oak, Florida Melbourne, Florida Tallahassee, Florida Apopka, Florida Sanford, Florida Kissimmee, Florida Orlando, Florida Ocoee, Florida Fanning Springs, Florida Lake Worth, Florida Deland, Florida
Tropical Auto Sales Ultimate Image Auto, Inc.
North Palm Beach, Florida Tallahassee, Florida
Under 10 Year Members Adesa Tampa Autoline Preowned Automotive One, Inc. B & M Auto Sales LLC Charlotte County RV Center, LLC Ex-Change Auto, Inc. First Place Auto Sales Inc HH Sales, LLC Incredible Car Prices Inc. International Auto Group Kathy’s Kars Landress Auto Wrecking Inc. Manheim Fort Lauderdale Manheim Fort Myers Manheim Jacksonville Manheim Palm Beach NextGear Capital PNP Enterprises Purvis, Gray and Company, LLP RHRM Smart Choice Autos Sunshine Used Car Sales Vegter Automotive
Tampa, Florida Atlantic Beach, Florida Longwood, Florida Newberry, Florida Port Charlotte, Florida Pinellas Park, Florida Gainesville, Florida Jacksonville, Florida West Palm Beach, Florida Pompano Beach, Florida Saint Petersburg, Florida Bonifay, Florida Davie, Florida Fort Myers, Florida Jacksonville, Florida West Palm Beach, Florida Carmel, Indiana Palm Bay, Florida Gainesville, Florida Ocoee, Florida Ormond Beach, Florida West Palm Beach, Florida Cape Coral
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B U S I N E S S O P E R AT I O N S
How to Grow Your Business in 2016 BY STEVE GORDON
The first step to hitting your New Year’s goals is to understand exactly what you want. After that, everything else falls into place.
I
take the time between Christmas and New Year’s Day to go “incommunicado” and do some thinking and planning for the next year. This year, I’m going to share my process with you. It’s a process that’s prepared me for new growth every year I’ve used it.
want), this little tip will save you.
I’ve organized this article into three parts. Part 1, a simple, strategic planning process you can complete in just four hours to simplify your goals for next year. Part 2, how to “recalibrate” yourself for maximum productivity and bankable results in 2016. This seldom used, yet simple “trick” guarantees that you’ll keep the focus on getting clients, even when you’re covered up with existing engagements. Part 3, how I guarantee that I have the freedom of time that I want, throughout the year. If working 80-100 hour weeks has become “normal” and you’re still not getting the results (ie. clients and income you
We’ll solve this with three questions. So, grab a sheet of paper and write these three questions…
14 — Independent Dealer —January 2016
PART 1 - SIMPLE, EFFECTIVE STRATEGIC PLANNING
I find that the reason most businesses don’t make much progress each year is that the owner, the leader isn’t clear on what he or she wants to accomplish.
1. “What do I want by the end of 2016?” Answers can be things like: • Money (personal income, business revenue) • Clients • Time off • Car • House, etc. No need to justify your wants…just write them down. This is called getting clarity about
what success looks like for you. Be as specific as you can. Write two to three sentences, tops. 2. “What has to happen to get what I want?” You might end up with something like this… “I want to double revenue next year and to do that we’re going to add 8 clients a week and ‘upgrade’ 20 percent of existing clients to our new premium service.” 3. “How am I going to do that?” Now get down to the strategy you’ll use to make it happen. “I’m going to have three, 30 minute calls with promoters each Monday to build relationship and get agreements to share my Referral Kit with their network of contacts.” Depending on your business and how complex your “what I want” list is, www.fiada.com
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January 2016 — Independent Dealer — 15
GROW YOUR BUSINESS continued from Page 14.
you might have two or three answers to Questions 2 and 3, to cover your different “wants.” My advice is to remember less is more. Don’t try to implement more than two or three strategies at once. The first time you do this, you may find that really getting the right answer (meaning getting down to what you REALLY want) takes some time. Grab a coffee and make an unedited list. Then weed it down if you must.
PART 2 - HOW TO “REENGINEER” YOUR TIME FOR MAXIMUM RESULTS
A recurring theme with my private clients is what we’ll call “the too busy to grow” trap. If you’ve ever found yourself at the end of day or week, that you started with great plans to do something to attract clients, with no progress to speak of because “stuff came up,” then this will help. See, the real problem isn’t that there’s too much to do. No, the problem is that the priorities are backwards, and there’s no built-in structure to prevent them from getting that way. The simple answer: theme your days. Let’s assume you’re not working weekends, so you’ve got 5 days in a week to get it all done. Most people show up and go after whatever seems pressing at the moment. And, they guarantee that the fires will NEVER go out. Ever.
The real problem isn’t that there’s too much to do. No, the problem is that the priorities are backwards, and there’s no built-in structure to prevent them from getting that way.
beating themselves up when they’ve done this, because they think it’s their own lack of willpower that’s the cause. Not so. It’s a system failure (or the absence of a system).
Instead, set aside specific days for specific things:
You can train them, I promise. And, they’ll actually respect you and be attracted to you (in the business sense) for it. You’ll become the leader, because you’re acting like the leader of your own time and not a follower of every client whim. This is the one simple and free change that’s guaranteed to result in more clients next year.
Monday - business development, marketing, meeting prospects, doing proposals, networking.
PART 3 - THE ALMOST MAGICAL WAY TO INCREASE YOUR FREE TIME
So, the simple system to fix it is to theme your days. Don’t show up, like Bill Murray in “Groundhog Day” to do the same collection of stuff-thatcomes-up every day. You’ll never make progress.
Tuesday - client work Wednesday - client meetings Thursday - client work Friday - planning, admin, prep and cleanup (Use these examples to create your own themes.)
So, the hot thing of the moment STEALS the time that you’d use for getting clients. This is a BIG PROBLEM for businesses that have been around for a while, hit a level of success, but have run into a ceiling. The ceiling is there BECAUSE the priorities are screwed up.
Put the day’s theme ON YOUR CALENDAR for the entire year. Then, when an activity comes up, you simply book it into the appropriate day…next available. “BUT WAIT…Don’t I have to jump when a prospect or client says ‘JUMP!’?” Rarely.
Now, most make the mistake of
In 20 years, I can recount just four true emergencies that we needed to
16 — Independent Dealer —January 2016
respond to immediately for clients. Most of the time, there’s float (if your clients get trained to think ahead a little).
Free time, time away from your business not thinking about your business, is essential to increasing your capacity as the leader of the business. For several years now, I’ve implemented a concept from Dan Sullivan of Strategic Coach, called “Free Days.” According to Sullivan, a “free day” is a 24-hour period, from midnight to midnight, where you don’t work. You don’t read about work. You don’t think about work. You don’t talk about work. You don’t do ANYTHING related to work. You might be scared already, just reading that. I was when I first tried it. In fact, I failed about 60 percent of the time. But this concept, if you really apply it, will give you a ton of free time…AND, www.fiada.com
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January 2016 — Independent Dealer — 17
GROW YOUR BUSINESS continued from Page 16.
it’ll give your brain the rest and recuperation time you need to be more creative and more productive. Here’s how you do it in a nutshell: •
•
•
Decide how many free days you’ll take next year. If you simply stake every weekend, plus the six standard holidays in the U.S. and a 1-week vacation, you get 115 days off. Pick a number that makes you happy and that’s reasonable to achieve. Mark all the free days on your calendar. If you’re using an electronic calendar, add an appointment called “Free Day” from 7am to 7pm and mark it “Busy,” so you won’t be tempted to put anything on that day. Each week count how many free days you actually took that week. If you miss one (and you will), add it back later in the year, to maintain your total number of free days.
•
Do this before you add anything else in for the year. THIS IS THE MOST IMPORTANT STEP.
You can get everything done and still take time off. The constraint you create by taking your free days off the table will make you more productive. The freshness and creativity you get from your free days will take your clarity and level of thinking about getting clients to a new, higher level. Nothing beats the perspective that comes from time away from the business. Steve Gordon is the publisher of The Unstoppable CEO, a group of publications that exists to find and highlight the character and wisdom of the CEOs who build their business, day-in and day-out, and share their stories with their peers. Read more at his website, www.unstoppableceo.net.
Join us for the next FIADA
TOWN HALL Join us for a day of continuing education, networking and a FREE LUNCH.
January 22, 2016 Boca Raton Marriott at Boca Center
e on li n r e t s Re gi o w at n om DA .c A I F . w ww
5150 Town Center Circle Boca Raton, Florida 33486 Town Hall Meetings are absolutely FREE to attend. Don’t miss this great opportunity to network with colleagues and ask your burning questions to the experts. Self-parking is complimentary.
Online Registration is closing soon. Go to www.FIADA.com now. Stick around and join us for the FIADA Board of Directors Meeting on January 23, 9:00 am - 3:00 pm.
Town Hall and Lunch sponsored by:
All dealers invited and encouraged to attend. Reserve a room at the Boca Raton Marriott by calling (800) 228-9290 or (561) 392-4600. Be sure to mention you are with the FIADA group. 18 — Independent Dealer —January 2016
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The Florida Department of Revenue is initiating a statewide audit campaign against Florida used car dealers, starting late summer 2014. The Department obtained DMV records of all used cars sold in Florida and is comparing these records against sales tax returns filed by used car dealers. Based on this information, the Department will estimate what taxable sales should have been for each used car dealer and initiate desk audits, full audits, and criminal investigations based on the level of estimated underreporting. These estimates can be erroneous and do not take into account financing charges, repossessions, sales to out of state residents, or other factors that can affect sales tax. Even worse, it only takes $301 of collected but not remitted sales tax to face felony charges and up to 5 years in jail under FL law.
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The Law Offices of Moffa, Gainor, & Sutton, PA concentrate in the area of Florida sales and use tax controversy and we are qualified to assist used car dealers in a defense against the Florida Department of Revenue. Whether you have underreporting, you’re not sure whether your company is ready for a sales tax audit, or you simply have questions about which FL DOR forms to file (e.g. Form DR-123), then please contact our law offices today for a FREE INITIAL CONSULTATION.
www.fiada.com
January 2016 — Independent Dealer — 19
L E G I S L AT I V E U P D AT E
Mechanics Lien Issue on the Right Track BY SANDRA MORTHAM, FIADA LOBBYIST
J
anuary 12th marks the beginning of the 2016 Florida Legislative Session. This year’s legislative session is somewhat of a test to see what merits, if any, there are to having the sixty (60) day Session in January and February rather than the normal period in March and April. FIADA is off and running with the “Mechanics Lien” issue being taken up on January 11th in the first Florida Senate committee. We are working in conjunction with Commissioner Adam Putnam and the Department of Agriculture to amending our language into their bill. They have been very supportive thus far in assisting us to get this done. We owe many thanks to President Jim Winterick for getting the Motor Vehicle Repair Council to endorse this language. As a result of this action, the Department of Agriculture helped craft the language we are working to get passed during this legislative Session. The two primary legislators we are working with are Senator Garrett Richter from Naples and Representative Jay Trumbull from Panama City. We are very Sen. Garrett Richter Rep. Jay Trumbull appreciative of all they are doing to get this accomplished. As we continue in our efforts, Lisette Mariner your executive director, may contact you to help in passage at either the committee or floor level. If it becomes necessary for a membership “call to action” she will prepare you for making 20 — Independent Dealer —January 2016
contact with your legislator’s office. Remember, this is very important to the overall process and we may need your assistance. To those of you who have contributed to the FIADA PAC, thank you very much! This makes a huge difference in opening doors so we can make your voices heard. If you haven’t yet contributed, there is time. Please visit the website at www.FIADA.com, or use the form on page 24. You’ll also notice a membership application on page 23. This issue of Independent Dealer is being distributed to all dealers in Florida. Some of you are members and some aren’t. If you are not a member, I highly recommend you fill out this application and join us. The more dealers we have standing together on legislative issues, the more influence we will have in Tallahassee. If you are a member, pass this application on to someone you know who isn’t, for the same reason. Then, make sure to flip the page over and make a contribution to the PAC as well.
Heads Up! FIADA Dealer Alerts are the best way to notify you of upcoming legislative news that needs your attention. Look for these e-mail alerts in your inbox this legislative season. www.fiada.com
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January 2016 — Independent Dealer — 21
AUCTION DISCOUNTS Adesa Tampa: $100 back transportation fees CADE/SADE/OACDE: $100 off buy/sell fees Charleston Auto Auction: $100 towards transportation Charleston Auto Auction: 1st time buyers and sellers receive $100 off one buy or sell fee Dealers Auto Auction: $75 off one buy or sell fee Manheim Caribbean: $100 Buy/Sell Fee Manheim Central Florida: $100 Buy/Sell Fee Manheim Daytona Beach: $100 Buy/Sell Fee Manheim Ft. Lauderdale: $100 Buy/Sell Fee Manheim Fort Myers: $100 Buy/Sell Fee Manheim Jacksonville: $100 Buy/Sell Fee Manheim Lakeland: $100 Buy/Sell Fee Manheim Orlando: $100 Buy/Sell Fee Manheim Palm Beach: $100 Buy/Sell Fee Manheim Pensacola: $150 off Buy/Sell fees Manheim St. Pete: $100 Buy/Sell Fee Manheim Tampa: $100 Buy/Sell Fee Manheim Georgia: $300 off Buy/Sell fees Orlando Auto Auction: 1 Free Buy/Sell Fee (approx. $190 discount) Tallahassee Auto Auction: $300 off buy/sell fees
LEGAL Counselorlibrary.com: Savings on Carlaw and Spot Delivery publications PAYMENTS/COLLECTIONS Howland International, Inc.: 50% off payment book software Howland International, Inc.: One FREE payment book PREPAID MAINTENANCE PROGRAM Fidelis PPM: $500 off setup fee and $20 off contract fee PROMOTIONAL PRODUCTS Gallagher Promotional Products: $25 off any promotional product SERVICE AGREEMENTS ASC Warranty: $90 off 12 month service agreement Royal Administration Services: $25 off 12 month service contract SHIPPING UPS Shipping: Save up to 35% on shipping with UPS
The FIADA Book of Savings is an $8,000 value that all FIADA new members and renewing members receive. Make sure you are using the full force of your membership by taking advantage ADVERTISING DISCOUNTS of these exclusive member discounts.
AutoShopper.com: FREE posting tools for 30 days AutoShopper.com: Receive a second zone in addition to your local edition at no additional cost Autotrader.com: Receive $150 off first month’s bill Carsforsale.com: Reduced pricing 3 months for $99 CAR RENTAL PROGRAM Williams & Stazzone: $300 towards entry fee with 5 or more cars
SOFTWARE AutoRaptor CRM: One month FREE trial CRM/lead management software DealerCenter: FREE 30 day trial of DealerCenter DMS Florida Dealer Consultants: Call for member discount ShiftPoint: 2nd month free Sys2k: $1,000 off Dealer Management Software
CREDIT CARD PROCESSING/MERCHANT SERVICES Transfirst: 325 Savings on Payment Processing Gateway Paymaxx Pro: $25 Statement Credit with sign-up
TAX/ACCOUNTING SERVICES Martinez, Olson, & Associates: FREE 1-hour tax consultation-$200 Value Tax Refund Services, Inc.: Receive $50 in FREE marketing materials
ELECTRONIC LIEN & TITLE SERVICES Auto Data Direct, Inc.: FREE Account Activation $100 Value Florida ELT: $0 Registration and First Lien Free
TRAINING Florida Auto Dealer School: $100 off travel charge for private classes Leedom & Associates: $100 off any event
ELECTRONIC TEMP TAG SERVICES Florida ETR: Sign up and receive 15 Free tags*
VEHICLE HISTORY REPORTS CARFAX: up to $200 in savings with signup for CARFAX Advantage Dealer program
FINANCE COMPANIES AFC: Floor 1 Get 1 Floorplan Fee FREE Floorplan Xpress: One FREE Floorplan Fee up to $75 FirstSun Financial: $500 Dealer Discount Reduction MarkOne Financial: Coupon good for ZERO admin fee
WEBSITES Auction123: Waived Setup Fee for website package AutoShopper.com: Website upgrade with AutoPilot Dealer Platform: FREE 30 day trial Florida Dealer Consultants: Free setup fee - $250 value
Coupons are subject to change. Terms and conditions apply, please see coupon for more details. 22 — Independent Dealer —January 2016
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Independent Dealer
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January 2016 — Independent Dealer — 23
SUPPORT THE FIADA PAC Your PAC Contribution helps spread awareness and gain support of issues affecting independent dealers in the state’s capitol. There’s still time to get your contribution in before the session starts if you make it today.
CONTRIBUTION INFORMATION Contributor’s Name:_________________________________________________________________________ Dealership/Company:________________________________________________________________________ Street Address, City, State, Zip:____________________________________________________________________
q
Check q
q
$500
Credit Card (one time contribution) q q
Credit Card Information:
$250 q
q Visa
$100 q
q
MasterCard
Monthly Credit Card Contribution (until cancel)
$50 q
q
$25
q
American Express
_________ q
Discover
PAYMENT INFORMATION Name on Card: Card number: Exp Date:
Sec. Code:
Billing Phone:
Billing Address Authorized Signature
Make your check payable to FIADA-PAC and mail to: FIADA • 1840 Fiddler Court • Tallahassee, FL 32308 If making payment via credit card, you may fax your contribution form to 850.385.3251
24 — Independent Dealer —January 2016
www.fiada.com
UPCOMING EVENTS January 2016 Jan. 22-23, 2016
FIADA Town Hall and Board Meeting
Boca Raton Marriott at Boca Center 5150 Town Center Circle, Boca Raton, FL 33486
April/May 2016 April 28 - May 1, 2016
FIADA Board Meeting Cruise Royal Caribbean Cruise Independence of the Seas 3 night Bahama Cruise
July 2016 July 15-16, 2016
FIADA Town Hall & Board Meeting
Daytona Beach Resort & Conference Center 2700 N Atlantic Ave, Daytona Beach, FL 32118
October 2016
March 2016 March 23-26, 2016 NIADA State Association & State Officers Meeting Omni Dallas Hotel Dallas, TX
June 2016 June 13-16, 2016 NIADA Annual Convention & Expo The Mirage Las Vegas, NV
September 2016 September 26-29, 2016 NIADA Leadership Conference & Day on the Hill The DuPont Circle Hotel Washington, DC
October 20-22, 2016
FIADA Annual Convention & Trade Show
Renaissance Orlando at Sea World 6677 Sea Harbor Dr. Orlando, FL 32821
www.fiada.com
Registration for FIADA events can be made anytime at www.FIADA.com
Registration for NIADA events can be made anytime at www.NIADA.com
January 2016 — Independent Dealer — 25
B U S I N E S S O P E R AT I O N S
Competing with Franchise Dealers and Coming Out on Top BY KATHY TAFOLLA
Franchise dealers seem to really understand how to convert sales to service, which leads to selling more cars. There is no reason why you can’t do the same
I
f you’re a dealer then you know DealerSocket has released their DAR for Fall 2015. This report cites two primary problems independent car dealers face. One is used car sales and the other is repair services. Why are these issues for independent dealers?
20 percent. They examined a Chrysler Jeep Dealer and discovered that the average sold customer that brought their vehicle back to the franchise dealer for service during the first year of ownership was 80 percent while the customer retention rate was 44 percent.
This finding is based on an independent dealer’s ability to convert used car sales to repair services, which correlates with customer satisfaction and retention. How do you convert sales to service? You must change customer perception. Almost all business is judged by the strength of the customer service department. You need to change consumer buying habits.
How do they do it? According to Dealer Socket, they have established a two-step process that is unique to their group and region. They introduce all new customers who purchase a vehicle to the Service Department at the time of delivery by scheduling their first oil change. Once the customer is in the Service Department, [they] created a program they call Platinum Plus. Every time a customer spends money in the Service Drive, 15 percent of dollars spent goes towards the purchase of their next vehicle. This has proven to increase retention in service.
DealerSocket reports that for independent dealers only 30 percent of sold customers brought their vehicle back to the dealership for service within the first year. The average percentage of repeat customers is only 26 — Independent Dealer —January 2016
Converting customers who bought vehicles from the sales department
into service customers is the formula for increasing customer holdings. The cycle of customer sales purchase to customer repair service, coupled with a 2-5 year trade-in is the pattern every dealership seeks to obtain. How does an independent dealer compete with the larger franchise? DealerSocket surveyed consumers and found that 75 percent say where they purchase their vehicle is influenced by negative online reviews. Your online presence matters and there are ways to make it work for you. DealerSocket proposes several solutions and I will www.fiada.com
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January 2016 — Independent Dealer — 27
28 — Independent Dealer —January 2016
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COMPETING WITH FRANCHISE DEALERS continued from Page 24
approach them one at a time. Data mining or data discovery is the process of analyzing data from different perspectives and summarizing it into useful information. This information can be used to increase revenue, cut costs, or both. This software is an analytical tool that is often used by retail, financial, communication and marketing organizations. It enables companies to determine relationships among internal factors like price, product positioning, or staff skills to external factors like economic indicators, competition, and customer demographics. This allows you to properly position your business and possibly increase customer sales and retention. Customer relations management software or CRM keeps a customer database with phone numbers and email addresses, so you can schedule follow ups, appointments, and email blasts that allow you to continually reach sold and prospective customers. Schedule your customer’s first oil change before they walk out the door and send a reminder before the appointment date. This is an excellent way to build a sales/service cycle. Examine sales trends, including the retail sales outlook, trends by vehicle type, web based and device driven sales, and the online shopper and
how they’re utilizing your website. Traditional marketing processes are irrelevant in light of today’s online marketplace. The DealerSocket DAR for Fall 2015 summarizes their report the following way: • Increase Customer retention by: • Integrating sales and service processes • Building trust and communicating the value of the Service Department within the first year of selling a vehicle • Utilizing data mining software Grow revenue by: • Implementing appointment confirmation processes • Focusing on used car opportunities • Decreasing spending on traditional advertising • Creating a digital shopping experience that drives consumer engagement Kathy Tafolla is a Content Manager with Lobel Financial specializing in online and print media content. Previous publications include articles, essays, poetry and fiction. She’s an avid reader and spends her free time running in organized events to fundraise for worthy causes.
www.FIADA.com
Can’t find what you’re looking for? Call us at (800) 237-0448. www.fiada.com
FIADA.com is the online hub for all your member benefits and services. Members can log-on any time to get education, information and current events. FIADA.com has a complete resource library available for dealers and their staff as well as helpful links, and virtual courses.
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INFORMATION WHEN YOU NEED, WHEN YOU NEED IT!
January 2016 — Independent Dealer — 29
INDUSTRY NEWS
New Member Benefit Provides Real Time OEM Recall Data Updates
NIADA Member BenefitHub is Live
NIADA recently introduced a new member benefit; a new enhancement to AutoZone’s Connect Dealer program. Service Drive powered by ALLDATA is a software integration that provides OEM safety recalls and technical service bulletins for ALL makes and models. This integration allows you to import up to 250 VINS at one time to retrieve all recall information, associated customer letters and TSBs in real time directly from the OEMs. Service Drive powered by ALLDATA also provides labor estimates for all makes and models. Service Drive’s labor estimates include accurate maintenance schedules with standard hours and warranty times provided by ALLDATA. Service Drive estimates also include OE part numbers for automatic usage with your repair orders. Service Drive powered by ALLDATA is designed to boost your shop’s efficiency and improve sales with: • A more efficient inventory recall evaluation process • Accurate, real time daily updates to enhance the timeliness of the data and corresponding transparency with customers • Better evaluation of trade-ins, auto auction and dealer-to-dealer vehicle purchases • Decreased risk of unattractive inventory to potential buyers • Increased customer trust by providing full disclosure with the most timely and high quality OEM recall notices available To learn more and enroll today, visit http://www.niada.com/autozone_ service_drive.php.
A major enhancement to the NIADA Member Services webbased promotional platform for our valued NIADA members has been announced. NIADA has developed, in conjunction with a third-party provider, a new NIADA member benefits web portal that significantly expands the number of member benefit offerings and enhances the navigation and ease of use, as well as making it much easier for you to register and sign up for member benefit programs. Take a tour of the new site at https://niada.benefithub.com.
NIADA Foundation’s Annual College Scholarship Program It’s annual scholarship application time again for outstanding graduating seniors. There are four $3,500 regional scholarships—one for each of the NIADA regions—and one $10,000 national scholarship to Northwood University in Midland, MI. Info is available at www.niada.com/foundation_ scholarship.php The regional applications must be postmarked no later than March 18, 2016.
ELIGIBILITY CRITERIA: To qualify for the scholarship, the applicant must: • Be classified as a high school senior during the current 2015-16 school year and legally residing in one of the 4 NIADA regions. • Have maintained an outstanding academic achievement record as reflected by an official high school transcript; and • Demonstrate an aptitude for college work as measured by SAT or ACT scores. 30 — Independent Dealer —January 2016
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2015-2016 FIADA EXECUTIVE COMMITTEE:
LISA COMPAGNO Senior Vice President Palm Tree Auto Sales Stuart, FL (772) 288-2099
DINO MERCURIO Chairman of the Board Independent Credit, Inc. West Palm Beach, FL (561) 686-8673
GOVINDA ROMERO Secretary Autoflex LLC Gainesville, FL (407) 468-9974
PHIL RISLEY BRANDI NOEGEL Regional Vice President Regional Vice President Noegel’s Auto Sales Cars & Credit of Jacksonville Jacksonville, FL Starke, FL (904) 616-4074 (904) 964-6461
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BRAD JOEL CHRISTOPHER LEEDOM STEVE MARBAIS, CMD Regional Vice President Regional Vice President Regional Vice President Splish Splash Auto Sales Marbais Enterprises, Inc. AutoMaxx Princeton, FL 33032 Ocoee, FL Sarasota, FL (305) 258-1191 (407) 877-7422 (941) 309-1111
SCOTT LANIER Treasurer Credit Cars Orlando, FL 32808 (407) 295-6211
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January 2016 — Independent Dealer — 31
PAID ADVERTISING
JIM WINTERICK, SR. President Gulfstream Motor Credit Miami, FL (305) 253-2335
MANHEIM FLORIDA ALWAYS NEARBY.
Manheim Daytona Beach 1305 Indian Lake Road Daytona Beach, FL 32124 386.255.2500 Sale: Wed 3 PM Total Resource Auction every Wed 2:30 PM Manheim Fort Lauderdale 5353 S State Road 7 Davie, FL 33314 954.791.3520 Sale: Fri 9 AM Total Resource Auction Tue 9 AM Ford Open Sale every other Fri Manheim Fort Myers 2100 Rockfill Rd Fort Myers, FL 33916 239.476.9800 Sale: Wed 4 PM Total Resource Auction every other Wed 3 PM Specialty Sale last Wed monthly 2 PM Galloway Direct Off Site Sale 2nd & 4th Tues 12 PM Manheim Jacksonville 10817 New Kings Rd Jacksonville, FL 32219 904.768.9981 Sale: Thurs 1 PM Total Resource Auction every Thurs 12:40 PM Manheim Lakeland 8025 N State Road 33 Lakeland, FL 33809 863.984.1551 Sale: Wed 2 PM Specialty RV/Boat Sale 1st Wed monthly 9 AM
32 — Independent Dealer —January 2016
Manheim Orlando 11801 W Colonial Dr Ocoee, FL 34761 Sale: Tues 9 AM Highline Exotic Sale Kicks off every 4th Tues 11 AM with Mercedes & BMW Chrysler Closed Factory Sale bi-weekly on Mon 12:30 PM GM Closed Sales bi-weekly on Mon 1 PM Nissan Infiniti Closed Sale 1st Wed monthly 9 AM Manheim Palm Beach 600 Sansbury Way West Palm Beach, FL 33411 561.790.1200 Sale: Thursday 9 AM Exotic Highline Sale every 4th Wed 9:30 AM Manheim St Pete 14950 Roosevelt Blvd Clearwater, FL 33762 727.531.7717 Sale: Thurs Weekly 2:30 PM inops Regular Sale 3 PM Manheim Tampa 401 S 50th St Tampa, FL 33619 813.247.1666 Sale: Thursday 9 AM Total Resource Auction Mon 9:30 AM at Cone Road location Ford Factory Sale every other Wed 10 AM Manheim Caribbean 1050 Carretera 865 KM 4.7 Bo. Candelaria Toa Baja, PR 00949 787.261.7300 Sale: Thurs 12 PM Salvage Sale Thurs 11 AM
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Manheim Central Florida 9800 Bachman Rd Orlando, FL 32824 407.438.1000 Sale: Wed 9 AM Total Resource Auction Wed 8:30 AM “Manheim Imperial Nights” Sale Tues 4 PM Specialty Heavy Truck & Equipment Sale Second Thurs Monthly at 10 AM
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