LA | Open Road | February 2019 by NIADA

LOUISIANA INDEPENDENT AUTOMOBILE DE ALERS ASSOCIATION | FEBRUARY/MARCH 2019

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WWW.LOUISIANAIADA.COM FEBRUARY/MARCH 2019 OPEN ROAD

FEBRUARY/MARCH

2019

INSIDE

Index 05...............................NIADA Government Report 06...................... 6 Outdated Social Media Tactics 07........ 4 VSC Features That Cool Post-Sale Heat 08................................2019 IIHS Top Safety Picks 10......................... Reconditioning Best Practices 14.................................Have Your Best Sales Year

AUCTION NEWS

LAKE CHARLES AUTO AUCTION CELEBRATES GRAND RE-OPENING

ADVERTISERS INDEX

AUCTION

LA’s 1st Choice AA............................................IFC Manheim ....................................................... 7 & 11 NextGear Capital ..........................................8 & 9 vAuto.................................................. Back Cover

NIADA HR SUPPORT CENTER NIADA is proud to announce the creation of our new HR Support Center. NIADAHR.com is designed to help dealers navigate today’s hazardous and litigious business environment. Need a form? Need a document? Need an employee handbook? Need advice? It is all at your fingertips! Welcome to NIADAHR.com, your complete HR Resource Center. And it is currently offered at a 25-33 percent discount! For more information or a tour of the services, contact our developmental partner at Robin@MyPayrollSite.com or 888-878-2101 Option 2.

OFFICE

BOARD MEMBERS

NIADA HEADQUARTERS

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838

For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. The Open Road is published bimonthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 760065203. The statements and opinions expressed herein are those of the authors and do not necessarily represent the views of the Open Road or NIADA. Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright ©2019 by NIADA Services, Inc.

STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITORS Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT Christy Haynes • christy@niada.com PRINTING Nieman Printing

RENOVATION

Lake Charles Auto Auction celebrated a grand re-opening of its new 4,000 square foot main office building on December 12, 2018. The auction offered over 700 vehicles and sold over 400 with an average value of $9,100. Owner Matt Pedersen said, “We are very excited to celebrate the opening of our new facility. The sale had a record number of cars consigned, and we couldn’t be prouder of the teamwork that everyone put in to make this a very successful event for us.” The auction gave away over $10,000 in cash and prizes throughout the celebration. Established in 1991, Lake Charles Auto Auction was started by Mike Pedersen as a twolane night sale catering to independent dealers in the area. Today the operation is run by the second generation, Mike’s son Matt, who purchased the auction from his father in 2012. LCAA expanded the facility in 2015 to a 4-lane auction and has now completed a $2 million renovation to the main office building, including additional dealer parking. Pedersen said, “We are happy to offer our dealer and consignor partners a comfortable place to do business.” The auction is a proud member of the AMS Auction Network. AMS president Tom Stewart said, “We are proud to have Lake Charles Auto Auction be a part of our network. It is great to see an auction owner re-investing into their business that benefits employees as well as dealers and consignors.” LCAA offers four action packed lanes, offering more than 400 units and over 200 buyers attending in-lane and online weekly. They have a full suite of services that include transportation, mechanical and reconditioning. For more information, please visit their website, www.lcaa.com.

WHAT’S NEW

For information on how to become a member please contact Emily LeBlanc Domangue: louisianaiada@gmail.com or 225-313-9131.

COMPLETES

OPEN ROAD FEBRUARY/MARCH 2019 WWW.LOUISIANAIADA.COM

PRESIDENT

Robert Perry Doug Perry Wholesale Cars 311 N. 4th Street Monroe, LA robertperry2010@yahoo.com 318-343-8611

VICE PRESIDENT

Rudy Martinez Ponce Imports, Inc. 6060 Florida Blvd. Baton Rouge LA 70806 rudymp@cox.net 225-927-4346

EXECUTIVE DIRECTOR

Emily LeBlanc Domangue 8792 Highway 28 West Alexandria, LA 71303 225-313-9131 louisianaiada@gmail.com

SECRETARY

Tim Blanchard America’s Auto Auction 3960 Blount Road Baton Rouge, LA 70807 Tim.Blanchard@ americansautoauction.com 225-778-3737

TREASURER

Daniel Guinn Guinn Auction Company, Inc. 1635 Thibodeaux Rd. Jennings, LA 70546 daniel@guinnauctions.com 337-368-7713

BOARD MEMBERS

Scott Ledet Ledet’s Auto Sales PO Box 1505 Gonzales, LA 70737 scottledet@ledetsautos.com 225-644-2886

Jacob Warren Louisiana’s 1st Choice Auto Auction 18310 Woodscale Rd. Hammond, LA 70401 jacob@lafcaa.com 985-345-3302 David Albritton Redline Motorcars, LLC 605 Cypress Street West Monroe, LA 71291 dcalbritton@gmail.com 318-605-3655 Jeff Hernandez Airline Automart Inc. 4520 Airline Hwy Baton Rouge LA 70805 airlineautomart@yahoo.com 225-357-1597 Scott Rabeaux Rabeaux Auto Sales 6882 Johnson St. Lafayette, LA 70593 srabeaux@yahoo.com 337-991-9100

Eric Stroderd My Dealer Supply 850 Kaliste Saloom Rd. Lafayette, LA 70508 877-427-1238 Kevin Reeves Dixieland Autoplex 15600 Florida Blvd. Baton Rouge, LA 70819 kevin@dixielandautoplex.com 225-248-6519 Matt Chiasson Greater Shreveport/Bossier Auto Auction 1315 Grimmett Dr. Shreveport, LA 71107 mattautoauction@att.net 318-573-5562 Walter Warren Tint City Auto 1410 W. Thomas St. Hammond LA 70401 tintcity1972@yahoo.com 985-969-0940 Chuck Hill Lake Charles Auto Auction 225-313-0018

WASHINGTON UPDATE | By Shaun Petersen

GOVERNMENT REPORT

LATEST GOVERNMENT ISSUES AND ACTIVITY NIADA is your voice in Washington D.C., advocating for independent dealers, the used vehicle industry and small business. Here’s a look at the latest news and NIADA efforts regarding legislative, regulatory, PAC and grass roots activities. LEGISLATIVE The 116th Congress is now in session, and with significant changes among the members – most notably, the Democrats now hold a 36-seat majority in the House of Representatives – committee assignments and leadership have changed considerably. Rep. Nancy Pelosi (D-Calif.) was again elected Speaker of the House, returning to the job she held 2007-11, when her party last held the majority. The 78-year-old agreed to limit her term as speaker to at most four years in order to gain support from a vocal group of opponents that included many of the young Democrats who won election in November. Pelosi’s longtime lieutenants, Rep. Steny Hoyer (D-Md.) and Rep. James Clyburn (D-S.C.), will serve as majority leader and majority whip. Rep. Kevin McCarthy (R-Calif.) remains in place as minority leader, as does Rep. Steve Scalise (R-La.) as minority whip. Committee leadership also switches to the new majority party. That includes new chairmen for the committees with jurisdiction over areas of interest to the auto sales industry. Those committees include: Transportation and Infrastructure: Chair, Peter DeFazio (D-Ore.); ranking Republican, Sam Graves (R-Mo.). Energy and Commerce: Chair, Frank Pallone (D-N.J.); ranking Republican, Greg Walden (R-Ore.). Financial Services: Chair, Maxine Waters (D-Calif.); ranking Republican, Patrick McHenry (R-N.C.). Ways and Means: Chair, Richard Neal (D-Mass.); ranking Republican, Kevin Brady (R-Texas). With the Republicans increasing their majority in the Senate to 53-47, overall leadership remained the same, with majority leader Mitch McConnell (R-Ky.) heading the chamber. The new majority whip is John Thune (R-N.D.), as Texas’ John Cornyn ran up against a term limit. Minority leader Chuck Schumer (D-N.Y.) and minority whip Dick Durbin (D-Ill.) lead the Democrats. Nevertheless, there were some changes on relevant committees, including Sen. Chuck Grassley (R-Iowa), replacing retired Orrin Hatch as chairman of the Finance Committee, with Ron Wyden (D-Ore.) as the ranking Democrat, and Roger Wicker (R-Miss.) replacing Thune as head of the Commerce Committee with Maria Cantwell (D-Wash.) as ranking Democrat. Other committees of interest include: Banking: Chair, Mike Crapo (R-Idaho); ranking Democrat, Sherrod Brown (D-Ohio). Environment and Public Works: Chair, John Barasso (R-Wyo.); ranking Democrat, Tom Carper (D-Del.).

REGULATORY Department of Labor: NIADA submitted comments supporting the Department of Labor’s proposed rule to help small businesses strengthen retirement security. The proposed rule would make it easier for small businesses to offer retirement savings plans to their workers through an Association Retirement Plan – a mechanism that allows small businesses to band together to offer 401(k) plans to their employees. DOL proposed the new rule in response to an executive order signed by President Trump on Aug. 31 in a ceremony in Charlotte, N.C. that was attended by NIADA past presidents Chris Martin and Billy Threadgill, Region II vice president Michael Darrow and Carolinas IADA president Darryl Jackson. Under the proposed rule, Association Retirement Plans could be offered by associations of employers in a city, county, state or multi-state metropolitan area, or in a particular industry nationwide. Sole proprietors and their families would also be able to join. DOL said the rule would enable small businesses to offer benefit packages comparable to those offered by large employers by reducing administrative costs through economies of scale and increase their negotiating leverage with financial institutions and other service providers. CFPB’s name game: Kathy Kraninger’s first official act as the new director of the Bureau of Consumer Financial Protection was to change its name back to Consumer Financial Protection Bureau. Kraninger’s predecessor, acting director Mick Mulvaney, initiated the move to call the bureau by the name given it in the 2010 legislation that mandated its creation. Kraninger reversed that decision, noting that the bureau is well known by the CFPB acronym and changing that would only confuse matters. In addition, the name change would have cost an estimated $19 million.

GRASS ROOTS Michigan: Michigan IADA’s efforts pushing for legislation to require pre-licensing and continuing education for the state’s used vehicle dealers paid off when Gov. Rick Snyder signed Senate Bill 1023 into law Dec. 19. The bill, which passed by votes of 96-13 in the House and 36-1 in the Senate, makes Michigan the 20th state with an education requirement for licensed dealers. MIADA president Otto Hahne said the association will work with the Michigan secretary of state’s office to develop the curriculum and will seek to become a state-approved provider of the dealer training program for both pre-license and continuing education. Ohio: On Dec. 19, Gov. John Kasich signed legislation creating a committee to study the use of information from National Motor Vehicle Title Information System reports to brand vehicles as salvage – a brand that would prohibit them from being driven or sold legally in the state. That became an issue last year, when the Ohio Bureau of Motor Vehicles began to brand vehicles that have been driven on Ohio roads safely for years based only on a scrap, crush, sold, salvage or null or blank indication on a NMVTIS report. Ohio IADA filed a lawsuit to fight that policy, which would have left thousands of vehicles inoperable and valueless in the state. Meanwhile, a bill was introduced in the state legislature to form a study committee to look into the issue – and prohibit BMV from placing a salvage brand on a title based solely on information from a NMVTIS report until Jan. 1, 2021, to allow the committee to complete its study. The new law, which took effect Jan. 10, names OIADA as one of the organizations to be represented on the committee. Shaun Petersen is NIADA’s senior vice president of legal and government affairs.

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SOCIAL MEDIA | By Kathi Kruse

6 OUTDATED SOCIAL MEDIA TACTICS GIVE

THEM

NOW

Social media is 10 years old. In that time, auto retail has evolved. Consumers have evolved. Social media has evolved and matured into a valuable marketing platform. So why are so many dealerships acting like it’s 2013 and using outdated social media tactics? Given that we’re in an accelerated environment with nearly every industry discovering the status quo isn’t effective, it’s prudent to make timely assessments of what social media tactics are working and not working. But determining which social media tactics are least effective isn’t always easy. Time is a valuable asset. Spinning your wheels with outdated social media tactics can drive you crazy, and drain precious resources. Here are six outdated social media tactics to give up right now. Publishing content that everyone has already seen a hundred times. There are “social media providers” out there who are ready to take your money, but provide no real strategy and deliver the barest minimum solutions. I have news for you: that is not social media marketing. Customers want to know more about your store and how it operates. Posting benign content that’s been seen elsewhere isn’t going to bring results. Stories are what attract and engage consumers. What stories can you tell about your business? Chasing Facebook likes. Even though many dealers believe otherwise, it’s never been important to judge a dealership by the amount of likes on their Facebook page. Is it good to have more likes? Yes, but only if those likes are people who are your current/repeat customers or people who will someday want to buy from you. Now that Facebook is “pay-to-play” and all content needs to be promoted with Facebook ads, there may be less of an urgency to grow your page likes (depending on various factors at your particular store). I’m not saying to entirely stop growing likes. I’m simply saying that if you have an ads budget and you’re spending a lot to grow your likes, reduce your page like ads budget to 30 percent or less of your total spend. Allocate the balance to promoting your inventory and your services.

Blog posts/website content written solely for SEO. In a buyer’s eyes, nothing is more valuable than content that educates, tells stories and informs. Done the right way, this type of content can be a deciding factor in their purchase. Content written solely for search engines is typically not fit for human consumption. Google has given us many clues over the last few years that this tactic is discouraged. Pro tip: Publish content that is written or produced for humans. Then, optimize it for SEO. Is it important to optimize your content for search? Of course. One of the goals for your content is to attract search engine traffic, but it’s not the only goal. It’s best to find the balance between engaging content and search engine optimization. For my blog, I typically write out my posts freestyle with keywords in mind (but not solely focused on them). When I’m happy with the finished product, I then optimize my post for search. Trying things once and giving up. Have you tried Facebook ads before? How about video or images of the happenings at your store? A lot of people try things once, fail, and then never give them another chance. It takes time and experimentation to figure out what does and doesn’t work on social media. If you tried Facebook ads once and didn’t like the results, try them again and carefully track your process so you can review it later to see how things can be improved. If you’re outsourcing your Facebook ads, pay attention to your vendor’s strategy. Ask what the goals are and set some metrics to make sure you’re getting your money’s worth. Relying on organic reach to get through to your audience. If you’ve been managing a Facebook Business page over the past few years, you’ve likely noticed a drop in how many of your fans have been viewing and interacting with the organic (not paid to promote) posts you publish to that page. The days of organic reach are pretty much over. Social platforms – Facebook especially – are constantly updating their algorithms to favor paid content.

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What’s the answer? Appreciate Facebook for what it is and accept the fact that after 10-plus years, everyone must pay for people to see their posts. Your budget doesn’t need to be huge – sometimes a few hundred well-placed dollars will get good results. Trying to be everywhere, all the time. Don’t waste time worrying about every social network available in the universe. It will cause you a lot of undue suffering. Do this instead: · Identify your target customers. · Define the places where they spend their time. · Pick one network to start with. · Set a clear path by setting goals and objectives. · Measure your results and tie your results back to your goals. Quick note: It’s very important to claim your social and online ratings profiles, even if you’re not utilizing them right now. If you haven’t yet, make sure you claim them before your competitor does. When you’re ready to leverage other networks, you don’t want to be surprised to find usernames are already taken. Evolving is necessary with today’s social media. Set yourself and your store up for success by following through on your social media strategy and the right social media tactics for your business. Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc., which coaches, trains and delivers webinars focused on integrating social media and online reputation management into dealership operations. She can be reached at kathi@krusecontrolinc.com.

ACCELERATE

| By GWC Warranty

Find a Service Facility If you don’t have your own service bay, highlighting where your customers can find repair facilities that have an existing relationship with your VSC provider will help them quickly find a place to take their vehicle. Perhaps even more importantly, showing your customers where they can find repair facility information can bail them out of a difficult situation when traveling. Coverage Lookup These days it’s all about self-service. Most customers today would prefer to find answers to simple questions on their own. Following a breakdown, a customer may want to know if their service contract is still active and what components are covered. In these instances, if they know where to look up their coverage online,

they can quickly find this information on their own, even outside of business hours. Instructional Content When customers need repairs quickly, there’s no time to go back and forth over claims procedures. With content readily available online that outlines proper claims procedures, customers can navigate the claims process with as few roadblocks as possible, ensuring a quick and painless claims experience. Multiple Contact Options Customers have different communication preferences. Some might want to make a phone call while others prefer email or live chat online. A VSC provider with all of these options at your customer’s disposal helps them get the answers they need quickly so they can get their car back on the road as soon as possible.

4 VSC FEATURES THAT COOL POST-SALE HEAT YOU DON’T HAVE TO BREAK A SWEAT Customer buys a car. Customer leaves your lot. Customer has a breakdown. Now your reputation is on the line. If you informed your customers of the VSC features that can help following a breakdown, this potential for post-sale heat won’t even make you break a sweat. The moments following a breakdown are undoubtedly a stressful time for your customers. They’re worried about getting a tow, how much it will cost, whether their service contract covers the repairs and what they will do in the interim while their vehicle is being repaired. These questions, coupled with emotions running high, can be a recipe for postsale heat you and your reputation can live without. Thankfully, if you’ve informed your customers about key features of their service contracts, you can avoid any potential blow-back from angry customers navigating a vehicle breakdown. WWW.LOUISIANAIADA.COM FEBRUARY/MARCH 2019 OPEN ROAD

MARKET WATCH

2019

IIHS TOP SAFETY PICKS MORE

MODELS

RANK

Nearly five dozen 2019 models meet stricter criteria to qualify for a 2019 Top Safety Pick award from the Insurance Institute for Highway Safety. The 30 first-tier “plus” award winners earn the highest rating for passenger-side protection in a small overlap front crash and have good-rated available headlights, while the 27 winners of the second-tier award qualify with an acceptable or higher rating in the newest IIHS crash test and the nighttime headlight evaluation. All 57 vehicles in this group earn good ratings in the institute’s five other crashworthiness evaluations and have an available automatic emergency braking system that rates advanced or superior for front crash prevention. IIHS now requires a good rating in the passenger-side small overlap front test to earn a Top Safety Pick versus the acceptable or good rating required for the 2018 award. This marks the sixth time IIHS has raised the bar to earn the Top Safety Pick+ award since introducing it in the 2013 model year to recognize vehicles that offer a superior level of safety. The Top Safety Pick award launched in

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FOR

SAFETY

the 2006 model year to help consumers identify vehicles with the highest ratings. Over the years, IIHS has added to and strengthened criteria for both awards to encourage manufacturers to speed up safety advances. “We challenged manufacturers to provide the best possible protection in a range of crash scenarios and equip vehicles with an automatic emergency braking system to avoid crashes, as well as offer headlights that give drivers confidence when traveling at night,” IIHS president David Harkey said. “Fifteen brands hit all the marks to give consumers shopping for a new car a wide variety of 2019 models to consider.” Models that earn Top Safety Pick+ or Top Safety Pick are the best vehicle choices for safety within size categories. Size and weight influence occupant protection in serious crashes. Larger, heavier vehicles generally afford more protection than smaller, lighter ones. Thus, a small car that’s a Top Safety Pick+ or Top Safety Pick doesn’t necessarily afford more protection than a bigger car that doesn’t earn the award. For the complete listing of vehicles, visit www.iihs.org/iihs.

INDUSTRY NEWS

NATIONAL INVENTORS HALL OF FAME MUSEUM EXHIBIT HITS THE ROAD

CUSTOM

SPLIT-MODEL

A custom-built, split-model Ford Mustang journeyed through 13 states to reach its final destination – the Consumer Electronics Show. The National Inventors Hall of Fame (NIHF) and Ford Motor Co. unveiled the oneof-a-kind 1965 and 2015 Ford Mustang splitmodel car in 2016 as part of the Intellectual Property Power exhibition at the NIHF Museum. The split-model car hit the road this year with a stop at CES in Las Vegas in January. The vehicle was on loan to the United States Patent and Trademark Office. The interactive exhibit showcased the differences in features between the two models, how the design has evolved to fit changing consumer tastes and technologies,

FORD

MUSTANG

and how intellectual property affects the design of an automobile. “Our split-model Ford Mustang is taking a road trip to CES,” NIHF CEO Michael J. Oister said. “As one of our most popular exhibits in the NIHF Museum at the USPTO, we are excited to have it displayed at the largest and most influential marketplace of technological innovation.” The split-model car was the brainchild of NIHF, USPTO and Ford, demonstrating 50 years of automotive design and technology protected by patents and trademarks. The 2015 Mustang has 36 patents unique to its production year. The 1965 model used more than 100 of Ford’s existing patents in addition to production year-specific patents.

The Ford Mustang has been in production continuously for more than 50 years and has become an icon of the American muscle car. The split-model car’s journey can be followed on the NIHF social media accounts using #FordMustang. For more information regarding NIHF Museum exhibits visit invent.org/museum. The National Inventors Hall of Fame is the premier nonprofit organization in America dedicated to recognizing inventors and invention, promoting creativity, and advancing the spirit of innovation and entrepreneurship. The National Inventors Hall of Fame Museum is a Smithsonian Affiliate. For more information, visit www. invent.org.

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MANAGEMENT MATTERS | By Adam Tobias

RECONDITIONING USED CARS Audi 2.0 Premium

BEST

PRACTICES

To earn top dollar in the automotive industry, you have to offer top products. And when you deal with used cars, most of the inventory you stock will need some love before you can present it to a customer. Auto reconditioning is what transforms banged up trade-ins into cars that customers will love. The used car market is booming, which is pushing the price of used vehicles higher than ever. To compete with these rising prices and customer expectations, dealers need to invest in better reconditioning practices. Doing so will not only improve a dealer’s profits, but provide the long-term benefit of happy customers. WHAT IS AUTO RECONDITIONING? No used car, whether bought at auction or through a trade-in, will be immediately ready for retail. Investing a small amount of time and money to fix minor issues can significantly boost a vehicle’s retail value. This is the purpose of reconditioning. Reconditioning includes, but is not limited to: · Engine repairs. · Oil and filter changes. · Maintenance on the drivetrain and suspension. · Equipping new brake pads or tires. · Fixing dents, chipped paint, and cracked windows. · Buffing out scratches. Auto reconditioning attempts to restore a vehicle to its optimal condition so it can be sold at the maximum price the market will allow. THE BENEFITS OF AUTO RECONDITIONING Reconditioning ensures buyers leave the lot happy and return with a smile when it’s time to purchase another vehicle. The benefits of reconditioning far outweigh the cost in time and money when done correctly: ·H igher retail prices. Reconditioned vehicles can be sold for a higher retail price. There is usually a several thousand dollar variance between vehicles in average condition and those in clean condition. In the image above, you will see how the same exact type of vehicle is appraised differently based on its condition. The condition of a vehicle can have a big impact on the market retail value. ·F aster turn rates. Humans like things that look nice, and the market for fixer-uppers

Audi 2.0 Premium

is much smaller than for vehicles ready to drive off the lot. This is why reconditioned vehicles are more likely to find a buyer quickly. · Warranties and certifications. Reconditioning allows your dealership to issue certifications and warranties, which increase consumer trust and satisfaction.

Condition:

Odometer: 41,000

Market Price: $13,650

Market Price: $15,180

THE COST OF RECONDITIONING Reconditioning is an investment, but it does not have unlimited returns. The money spent on reconditioning needs to be monitored and compared to the margin you make on each vehicle. It’s essential to accurately appraise a vehicle and factor in reconditioning costs before approving the work. A good ballpark for reconditioning costs is $1,000. If you designated the vehicle as a retail unit, anything higher than $1,000 should be subject to review: · Is the vehicle in high demand? · Does it have high mileage? · Can you sell it quickly enough? The goal for reconditioning is to restore a vehicle to its maximum retail price while spending the least amount possible. However, this should never come at the cost of quality. BEST PRACTICES FOR AUTO RECONDITIONING Cost and speed are the two major considerations when reconditioning vehicles to sell. Time is money, and every day your vehicle goes unlisted is money lost. Remember the saying: “20 percent of the effort is responsible for 80 percent of the result.” Here are some reconditioning best practices to make sure you put in the right 20 percent in every vehicle. · Optimize reconditioning costs. Dealers should constantly root out inefficiencies and excess costs in their reconditioning process. One way to reduce costs is by using quality, non-OEM parts. However, dealers should make sure this doesn’t disqualify them from any certification programs.

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· Fast turnaround. Complete reconditioning should be within 3-4 days of acquiring the vehicle. More days in reconditioning means longer turn rates and less gross profit. The optimum period to sell the vehicle is 30 days. · Buy better vehicles. Sometimes the best way to reduce reconditioning costs is to buy vehicles that need less work. Look for vehicles virtually ready to roll off the lot to offset the cars that need extra work. · Have a reconditioning team. Don’t make your services team decide between reconditioning a vehicle and working on a customer order. Eliminate this conflict by having a dedicated reconditioning team. · Recondition for wholesale. Some dealers overlook reconditioning for wholesale, but this is a mistake. Dealers are human too, and everyone is more likely to buy a vehicle that is in good shape. Reconditioning a vehicle before auction could help you net a few hundred, even a few thousand, dollars more. INVESTING IN RECONDITIONING Can you afford the investment in reconditioning? The real question is, can you afford not to invest? Reconditioning used vehicles is an investment that can reap huge dividends for your dealership. When done right, reconditioning can add thousands of dollars to the final selling price, netting you higher profits and happy customers. The benefit is multiplied with every extra vehicle you sell thanks to faster inventory turn rates. Doing reconditioning the right way takes its own investment of time, education, and tools. Dealers who commit wholeheartedly to improving their reconditioning practices are setting themselves up for success for a long time. Adam Tobias is the co-founder and COO of Dealercue, which provides dealerships with real-time, intelligent, market-driven vehicle appraisal, pricing, inventory management, and sourcing solutions. He can be reached at adam@dealercue.com.

LIADA AUCTION MEMBERS ADESA Shreveport 7666 Greenwood Road Shreveport, LA 71119 318-938-4400 Phone 318-938-7623 Fax www.adesa.com Sale Wednesday at 9 a.m.

Lake Charles Auto Auction 2435 E Broad Street Lake Charles, LA 70601 337-433-8664 Phone 337-436-7197 Fax www.pedersenandpedersen.com Sale Wednesday at 5:30 p.m.

Alexandria Auto Auction 515 N 3rd Street Alexandria, LA 71301 318-484-9672 Phone 318-484-9699 Fax www.alexandriaauction.com Sale Tuesday at 5:30 p.m.

Louisiana’s 1st Choice AA 18310 Woodscale Road Hammond, LA 70401 985-345-3302 Phone 985-343-5735 Fax www.lafcaa.com Sale Tuesday at 8:45 a.m.

America’s Auto Auction Baton Rouge 3960 Blount Road Baton Rouge, La 70807 225 778 3737 www.americasautoauction.com Sale Thursday

Long Beach Auto Auction 8494 County Farm Road Long Beach, MS 39560 228-452-2030 Phone 228-452-9588 Fax www.lbautoauction.com Sale Wednesday at 1:30 p.m.

America’s Auto Auction Houston 1826 Almeda Genoa Rd. Houston, TX 77047 281-819-3600

Manheim Lafayette 1611 St. Mary Street Scott, LA 70583 1-337-237-5620 Phone Sale Thursday at 10:00 a.m.

Bayou State Auctions, LLC 134 ½ Galbert Rd Lafayette, LA 70506 337-289-9191 Sale Tuesdays at 5:30pm

Manheim Mississippi 7510 U S Highway 49 Hattiesburg, MS 39402 601-268-7550 Phone 601-579-7202 Fax www.manheim.com Sale Thursday at 9 a.m.

Brown’s Auction Co. 6249 Hwy 190 Eunice, La 70535 Phone: 337-457-4919 www.brownsauction.com Sale is quarterly (call for more information). Dealer’s Auto Auction 1657 Old Whitfield Road Jackson/Pearl, MS 39208 601-956-2700 Phone 601-956-5603 Fax www.midsouthaa.com Sale Tuesday at 9 a.m. Greater Shreveport-Bossier 8000 Highway 80 Shreveport, LA 71119 P O Box 29590 Shreveport, LA 71149 Phone: 318-221-3362 www.gsbautoauction.com Sale Wednesday at 1:00 p.m. Insurance Auto Auction 29000 Frost Road Livingston, LA 70754 225-686-9197 Phone 225-686-8197 Fax www.iaai.com Sale Monday at 9 a.m.

Manheim New Orleans 61077 St. Tammany Slidell, LA 70460 985-643-2061 Phone 985-643-2122 Fax www.manheim.com Sale Wednesday at 9 a.m.

privileges. ($400.00 yearly dues.)

Membership ($400.00 yearly dues.)

*Auction Discount Coupon Books worth $4,050.00 available to LIADA members. Coupons can be redeemed at the following participation auctions.

Mike McTurner Dealers 136 Gregory Drive Monroe, LA 71202 318-343-8200 Phone 318-343-8259 Fax www.dealersautoauction monroe.com Sale Tuesday at 10 a.m. Oak View Auto Auction 13451 Florida Blvd Baton Rouge, LA 70815 225-272-5139 Phone 225-272-5314 Fax www.oakviewautoauction.com Sale Friday at 10 a.m. Z66 Auto Auction 66 N Mingo Tulsa, OK 74116 Phone: 918-794-0660 www.z66aa.com Sale Friday at 11:30 a.m.

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P.O. Box 13751 Alexandria, LA 71315

LIADA DEALER SERVICE PROVIDERS DETAILING ADVERTISING Jose Upholstery Auto Sweet Jose Delgado Christopher Lentz 4776 Fairfields Ave. lenny@autosweet.com Baton Rouge, La 70802 3240 W. Henderson Rd. Phone:225-316-4575 Columbus OH 43220 Phone: 614-448-9089 M M Topshelf Detailing & Recon Lonnie McCauley ATTORNEY lmccauley@eatel.net Tureau & Tureau, APLC 4452 Jeffery Dr. Ralph Tureau & Steven Tureau Baton Rouge, LA 70816 steven@tureaulawfirm.com Phone: 225-603-4600 12320 Hwy 44 Suite 3C Fax: 225-622-5994s Gonzales, LA 70737 Phone: 225-647-8529 FINANCES Fax: 225 647-8530 First Consumers Financial, LLC Bob Chedville AUTO PARTS bob@fcfcarloan.com AutoZone 14580 Florida Blvd. Derlyn Odom Baton Rouge, LA 70819 deryln.odom@autozone.com Phone: 225-272-9009 6517 airline why Nationwide Acceptance Metairie LA, 70003 Martin Less 228-990-5669 mless@nac-loans.com Pull A Part 3435 N Cicero Ave. Toby Thompson Chicago IL 60641 Baton Rouge, LA 70814 Phone: 800-622-7605 Phone: 225-247-9160 Preferred Loans LLC BODY SHOP Shana Quick preferloans@eatel.net Custom Colors 12241 Roddy Rd. Pete McKnight--Billy Rapp Gonzales, LA 70737 customautocolors@gmail.com Phone: 225-644-0304 11550 Cloverland Ave. Fax: 225-644-6862 Baton Rouge, LA 70809 Phone: 225-752-5947 Reynolds & Reynolds/AppOne Fax: 225-752-5940 Michael Riley michaelriley@reyrey.com BUSINESS SERVICES Davenport Business Services LLC 4150 2nd St. South Suite 550 St. Cloud MN 56303 David Davenport david@davenportbusinessservices.com Phone: 877-277-6631 X 57628 14 Concord Place Westlake Financial Services Gulfport, MS 39507 Rob Wilson Phone: 228-547-9219 4751 Wilshire Blvd, Suite 100 Los Angeles, CA 90010 CREDIT CARD SERVICES dealers@westlakefinancial.com Applied Merchant www.westlakefinancial.com Jeff Gallo Phone: 888-8YES-YES jgallo@appliedmerchant.com 26775 Malibu Hills Rd. FLOOR PLAN Calabasas, CA 91301 AFC Phone: 800-236-2179 Tim Ormiston 1610 A St. Mary St. DEALER MANAGEMENT SYSTEMS Scott, La. 70583 Dealer Market Exchange timothy.ormiston@autofinance.com Holly Jonsson www.Afcdealer.com holly@dmx.io Phone: 337-593-8992 B5 Calle Tabonuco AFC Guaynabo PR 968 Michael Meyers Phone: 970-749-0851 Michael.Meyers@autofinance.com Frazer Computing Inc. 18310 Woodscale Rd. help@frazer.com Hammond La. 70401 P.O. Box 569 Phone: 877-739-0218 Canton, NY 13617 Phone: 1-888-963-5369 Automotive Finance Corporation Fax: 1-888-963-3366 Cassie Lasley 106 Village St. Suite 1 DEALER SUPPLIES / FORMS Slidell, La 70458 My Dealer Supply Company Office: 985-288-6431 Eric Stroderd Cell: 504-235-4264 ericstroderd@mydealersupply.com Cassie.Lasley@AutoFinance.com 311 A West University www.AFCDealer.com Lafayette, LA 70506 CarBucks Floor Plan Phone: 877-427-1238 Brandon Ziebarth Romano Promotions LLC www.usecarbucks.com Megan Romano 381 Halton Road megan@romanopromo.com Greenville, SC 29607 42062 Gardens Blvd Phone: 225-819-6747 Hammond, LA 70403 NextGear Capital Phone: 985-634-8274 Stuart LaBauve slabauve@nextgearcapital.com Phone: 225-620-1660 Fax: 866-550-8694

GLASS/WINDSHIELD

Babin’s Auto Glass Inc. Brent Babin babinsautoglass@eatel.net 13283 Airline Hwy. Gonzales, La 70737 Phone: 225-647-1369 GPS

Position Plus GPS Andy Seckinger aseckinger@spireon.com 950 Market St. Shreveport, LA 71107 563-581-7693 INSURANCE & BONDS

Affordable Insurance Solutions Janis Fallaw agentj0912@aol.com 751 Hwy 51 Madison, MS 39110 Phone: 601-856-9447 Carmouche Insurance Inc. 516 N. Burnside Ave Gonzales, LA. Phone: 225-647-8552 Charles Carmouche charles@carmoucheinsurance.com Crossland Insurance Agency Andrew Arceri andrew@crosslandins.com 1101 Hwy 90 E. New Iberia, LA 70560 Phone: 337-367-6035 Dwight W. Andrus Insurance Bonnie Dozier bbd@andrus.com P.O. Box 60970 Lafayette, LA 70598 Phone: 337-981-7300 Insurance & Bonds, LLC John Sonnier 9131 Interline Ave. #10-B Baton Rouge, LA 70809 Jsonnier60@gmail.com Phone: 225-922-3700 S. Brown Associates 150 River Rd. M3 Montville, NJ Phone: 973-270-2270 US Agencies Low Cost Insurance Sharon Miller Sharon.Miller@confiegroup.com 440 Third St. Baton Rouge, LA 70802 Phone: 225-615-0957 Fax: 225-987-5144 US Agencies Low Cost Insurance Kenneth Champagne kchampagne@usagencies.com 440 Third St. Baton Rouge, LA 70802 Phone: 225-408-8492 Fax: 225-987-5144 MARKETING

Interactive Financial Marketing Group Travis Weisleder dealerinfo@interactivefmg.com 1509 West Main St. Richmond, VA 23220 Phone: 804-225-1880

PAINT TOUCHUP & INTERIOR REPAIR

VEHICLE HISTORY

MasterMatch Eddie Krueger eddielsufan@yahoo.com 1104 Pine St. Suite A Monroe LA 71207 Phone: 318-322-2886

Carfax Kathy Collins kathycollins@carfax.com Phone: 703-934-2664 5860 Trinity Pkwy Centreville, VA 20120

SECURITY SYSTEMS

WARRANTY

Integrity Audio Visual LLC Steve Clay Steve@Integrity-av.com 39089 South Angel Court Gonzales, LA 70737 225-235-1528

AUL Corp Shelton Green Shelton@sadrinc.com 704 Hickory Ave. New Orleans, LA 70183 Phone: 504-722-8123 CTR Warranty, LLC RENTAL CAR Ken Rugg Enterprise Rental Car 319 North 3rd St. 3545 N 1-10 Service Rd., Ste. 101 Monroe, LA 71201 Metairie, LA 70002 Phone: 318-323-6385 Phone: 504-454-1717 Ferrell Dealer Services RENT TO OWN 18016 Shadow Creek Ave. Seadra Inc. Baton Rouge, LA 70816 John Garner Phone: 225-978-5111 john@seadraonline.com fspruell@gmail.com 10555 Lake Forrest Blvd. GCWS, LLC New Orleans LA 70127 Rock Brunet Phone: 504-241-0211 rockbrunet@gmail.com 101 Shumard Dr. TIRES Lafayette LA 70508 Cooper Tire and Rubber Company Phone: 337-258-2998 Michael Wertz mtwertz@coopertire.com GWC Warranty 820 Rivers CreekLn. James W. Hester Little Elm, TX 75068 jhester@gwcwarranty.com Phone: 567-525-2765 40 Coal St. Wilkes-Barre, PA 18702 TITLE – NOTARY Phone: 225-771-9766 Dealertrack Registration Protective Solution LLC and Titling Services Rick Cole Processed by Auto Title Express rcmarketingllc@me.com Amy Casey 4211 Sterlington Rd. 3445 Causeway Blvd Suite 103 Monroe, LA 71203 Metairie, LA 70002 Phone: 877-697-2533 7 locations throughout Louisiana! PWI Go.dealertrack.com/LA Sharon Coleman Contact Sales: 888.346.3087 sharon@warrantys.com Express OMV PO Box 278 Brooke Barnett Orwigsburg, PA 17961 Phone: 225-243-6925 Phone: 800-548-1121 485 Florida Blvd. Denham Springs LA 70726 Southern Auto Dealer Resources 704 Hickory Ave. LeBlanc Auto Title Company Harahan, LA 70123 1116 E. Cornerview St. Shelton Green Gonzales, LA 70737 sheltongreen3@aol.com Phone: 225-644-4591 Phone: 504-466-88002 Fax: 225-644-8207 hopeleblanc@eatel.net TOWING & RECOVERY

Smart Tow Kevin Rembert 3045 Rosenwald Rd. Baton Rouge, LA 70807 kevinpremert@yahoo.com Phone: 225-356-3002 Fax: 225-356-3222 TRANSPORTATION

Masney Auto Transport Inc. Greg Hedges page@masney.com 831 Maguire Rd. Ocoee FL 34761 Phone: 407-877-8882

WWW.LOUISIANAIADA.COM FEBRUARY/MARCH 2019 OPEN ROAD

HAVE YOUR BEST SALE$ YEAR IN 2019

TWO

IMPORTANT

TIPS

Warning: if you’re looking for a shortcut or easy way to your best year, you probably won’t like this article. What I have to say is not what the majority of the population wants to hear. That said, it is what you need to hear if you want to have your best year in 2019. Here are two tips. Work Harder This is the tip most people won’t like. Here’s the thing about hard work: the harder you work by making more sales calls, the more your sales will increase. Want to increase sales by 20 percent? Simple – increase your sales calls by 20 percent. If everything stays the same – your contact rate, your closing ratio, the quality of prospects you’re calling on, your sales skills, etc. – and you simply call on more people, you will automatically increase sales by the percentage of increase in the number of calls you make. So whatever percentage increase it will take to have your best year, simply increase your calls by that number and you’re guaranteed the result. The most successful people on the planet, in any walk of life, are the hardest workers. No exceptions. The top athletes, top musicians, top actors and actresses and top ditch diggers all work harder than everyone else. Are there exceptions to the rule? Yes, and they are just that – the exceptions. Follow the rule, not the exception. The exception is the person who got rich winning the lottery. You don’t want to rely on those odds. Stop looking for the shortcut – the easy, carefree, painless way. In the long term, those are the longer ways. They are more expensive mentally, physically and financially, and ultimately the shortcuts are a waste of time. Follow the tried-and-true path and work hard. It is also a good idea to increase the effectiveness of your sales calls. If you get better at all aspects of selling – getting to

FOR

SUCCESS

the decision maker, getting their attention, differentiating yourself, finding their pain, creating a solution, building rapport and long-term relationships, etc. – now an increase in sales calls will grow sales exponentially. Even if you only get better in one or two areas, your sales will increase at a higher rate than if you simply increase the number of calls. Be Disciplined The most important activities of a salesperson are prospecting, presenting and closing. The most important thing you do during the sales day is talk to people who can give you business. It takes lots of discipline to stick to these activities during prime calling hours. You’ve got to make hitting your numbers every day your number one priority. This means you’ve got to guard your time closely against your biggest enemy – distractions. Distractions come in many forms – phone calls from friends and family, text messages, email chimes, social media, chasing a fly around your office for five minutes, paperwork you should be doing off-hours, and other urgent/unimportant tasks that steal your attention during the day. While most of these distractions simply pop up, many of us are also guilty of intentionally placing distractions smack in the middle of our day. Don’t do that. Don’t schedule doctor appointments, dentist appointments, appointments with your financial planner or CPA, or anything else at these times. Obviously there are times when you can’t avoid that, but you want to stick to this rule as much as possible. Also, again, don’t do paperwork and other non-time sensitive activities during prime calling time. You also want to look for other time wasters. I had one insurance agent who was going to every Chamber of Commerce, BNI, and networking event for years, all while getting very little business. When we got her to go out and knock on 50 new prospect doors a week

OPEN ROAD FEBRUARY/MARCH 2019 WWW.LOUISIANAIADA.COM

and follow up with phone calls, her efforts over the next 12 months produced more than 40 times the results she got from attending all those events. It’s simple – she was no longer hoping the same people she saw every week for three years, who were at the networking events primarily to “get” as opposed to “give” business, would have a new lead for her. She was now proactive with in-person visits and phone calls to prospects. Was it harder to knock on the doors and ring the phones and face rejection from strangers? Yes. And as your parents told you growing up, the most difficult thing to do is usually the right thing to do. In-person visits and phone calls are also still the fastest ways I know to grow a business quickly. That said, if you still want to go to the networking events you can, but only after you’ve gotten all the prospects you need from phone calls and visits. In addition to the above, put up two signs – one in your office and one in your car – that say, “Am I working on my most important sales activities right now?” If it’s 5 a.m. and the answer is “no,” that’s fine. If it’s 11 a.m. on a Wednesday, and most of your prospects are on a standard work schedule, that’s an issue. Finally, part of being more disciplined is also delegating activities and finding faster, better, more effective ways to do current tasks. This will free up more time for more sales activities. Ultimately there is only one question you must answer to determine whether you’ll have your best year in 2019: Are you willing to put in the time, effort and energy, and endure the pain, to do the things that must be done, when they must be done, to make it happen? Yes? Great! Then get out of your own way and go make 2019 your best year ever! John Chapin is a sales and motivational speaker and trainer. He has over 31 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For more information, visit www. completeselling.com or email johnchapin@ completeselling.com.