LOUISIANA Open Road Dealer Magazine by NIADA

OPEN ROAD

S TAT E A F F I L I AT E

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LOUISIANA INDEPENDENT AUTOMOBILE D E A L E R S A S S O C I AT I O N O C T O B E R / N O V E M B E R 2 0 17

DOES YOUR SALES PROCESS

MEASURE UP? Time to Fine Tune PAGE 22

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INSIDE

SAFETY WATCH

04...........................................................Social Media Lessons 06............ Tips to Secure Vehicle Service Contract Financing 08............................................... BHPH Auto Financing Trends 10................................................. NIADA Government Report 14.........................................................Data Security Warning 16...........................................Avoid Common Sales Mistakes 22...............................Does Your Sales Process Measure Up?

WHAT’S NEW

NATIONAL POLICY CONFERENCE SESSIONS CATCH THEM ON NIADA.TV

Get caught up on the latest national regulations on the NIADA.tv Compliance/Legal channel! There was an impressive lineup of federal compliance and regulatory educational sessions during the recent National Policy Conference in Washington, D.C., including updates from the FTC, CFPB, and Small Business Administration. These sessions will be available for viewing on NIADA.tv October 16.

ADVERTISER’S INDEX

America’s AA - Baton Rouge..............................................IBC AmTrust Financial..................................................................13 Black Book...............................................................................5 DAA Dealers Auto Auction, LLC.............................................7 DAA of The Rockies..............................................................14 DealerLane.com....................................................................17 Lake Charles AA......................................................................9 LA’s 1st Choice AA...............................................................IFC Manheim................................................................................11 NextGear Capital...................................................................12 Reynolds and Reynolds.........................................................18 STARS GPS............................................................................19 Texas Direct Auto Auction....................................................15 VAuto..................................................................... Back Cover

OFFICE

For information on how to become a member please contact Dwayne Tambling louisianaiada@gmail.com 877-513-6275.

NIADA HEADQUARTERS

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 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 76006-5203. 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 ©2017 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

Christopher Hanley • chris@niada.com PRINTING Nieman Printing

GM RECALLS VEHICLES FOR AIRBAG UPDATE Software Update Needed

General Motors LLC is recalling 40,638 model year 2014-16 Buick Lacrosse and Chevrolet Spark EV, Caprice PPV and SS vehicles; 2014-17 Buick Encore and Chevrolet Corvette, Silverado 1500 and GMC Sierra 1500 vehicles; 2015-16 Cadillac Escalade and Escalade ESV, Chevrolet Tahoe, Trax, Suburban and Silverado 2500 and 3500 and GMC Yukon and Yukon XL vehicles, and 2015-17 GMC Sierra HD 2500 and 3500 vehicles.

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

Jacob Warren Louisiana’s 1st Choice Auto Auction 18310 Woodscale Rd. Hammond, LA 70401 jacob@lafcaa.com 985-345-3302

VICE PRESIDENT Matt Pedersen Lake Charles Auto Auction 2435 E. Broad St. Lake Charles LA 70601 matt@lcautoauction.com 337-433-8664

Donald Mendoza Don’s Wholesale 6902 Johnston St. Lafayette, LA 70503 mendozadonald@yahoo.com 337-210-5000

EXECUTIVE DIRECTOR Dwayne Tambling Dwayne Tambling Auto Brokers 46001 Hwy # 22 St. Amant, LA 70774 Phone: 225-675-3675 SECRETARY Daniel Guinn Guinn Auction Company, Inc. 1635 Thibodeaux Rd. Jennings, LA 70546 daniel@guinnauctions.com 337-368-7713 TREASURER Chuck Hill Lake Charles Auto Auction 2435 E. Broad St. Lake Charles LA 70601 chuck@lcautoauction.com Phone: 337-433-8664 BOARD MEMBERS Scott Ledet Ledet’s Auto Sales PO Box 1505 Gonzales, LA 70737 scottledet@ledetsautos.com 225-644-2886

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While being previously remedied for another recall (16V-651), the affected vehicles may not have received the complete software update necessary to remedy the recall condition. Without the update, certain driving conditions may cause the air bag sensing and diagnostic module software to activate a diagnostic test. During this test, deployment of the frontal air bags and the seat belt pretensioners would not occur in the event of a crash. GM will notify owners, and dealers will reflash the SDM software. Vehicles that have had a previous air bag deployment will have the SDM replaced. The manufacturer has not yet provided a notification schedule. GM’s number for this recall is 17287.

David Albritton Redline Motorcars, LLC 605 Cypress Street West Monroe, LA 71291 dcalbritton@gmail.com 318-605-3655

Kevin Reeves Dixieland Autoplex 15600 Florida Blvd. Baton Rouge, LA 70819 kevin@dixielandautoplex.com Phone: 225-248-6519 Rudy Martinez Ponce Imports, Inc. 6060 Florida Blvd. Baton Rouge LA 70806 rudymp@cox.net Phone: 225-927-4346 Ricky Donnell Best Stop Auto Sales LLC 3591 Front St. Winnsboro LA 71295 Bsas03@yahoo.com Phone: 318-435-6565

Jeff Hernandez Airline Automart Inc. 4520 Airline Hwy Baton Rouge LA 70805 airlineautomart@yahoo.com 225-357-1597

Matt Chiasson Greater Shreveport/Bossier Auto Auction 1315 Grimmett Dr. Shreveport, LA 71107 mattautoauction@att.net Phone: 318-573-5562

Scott Rabeaux Rabeaux Auto Sales 6882 Johnson St. Lafayette, LA 70593 srabeaux@yahoo.com 337-991-9100

Walter Warren Tint City Auto 1410 W. Thomas St. Hammond LA 70401 tintcity1972@yahoo.com Phone: 985-969-0940

Eric Stroderd My Dealer Supply 850 Kaliste Saloom Rd. Lafayette, LA 70508 877-427-1238

Joel Couvillion Joel’s Auto Sales 5517 Coliseum Blvd. Alexandria, LA 71303 hotbyjoel@yahoo.com Phone: 318-442-3448

October/November 2017 OPEN ROAD

SOCIAL MEDIA

BY KATHI KRUSE

SOCIAL MEDIA LESSONS FROM MY PE TEACHER Exercise These Tips for Success

Teachers can affect our eternity. In fact, it’s hard to tell where the influence stops, if at all, even many years later. On today’s social web, our values appear front and center. As the saying goes, reputation is everything, and there are social media lessons to be learned from our days in gym class. Not every teacher has a profound effect but most of us remember what it was like in PE. My teacher was a short, spunky lady named Mrs. Betty Bruno who was also my cheer coach. The best teachers teach from the heart and Mrs. Bruno’s lessons continue to resonate in my world today. I learned each of these lessons from Mrs. Bruno. Let me know how many resonate with you. Failure is not fatal. But failure to change might be. Marketing in the social era can be scary, especially if you’re new. People don’t know what to post or where to even start. The smart thing to do is begin with a strategy, not tactics. Then, keep failing until you succeed. Whatever you do, don’t do nothing. You need to be where your customers are, and that’s social media.

If you find a path with no obstacles, it probably doesn’t lead anywhere. Today we hear a lot of noise urging us to buy a particular social media solution. Don’t believe everything you hear. Social media and managing your digital reputation takes hard work, commitment, talent and a budget. There will be obstacles, but none that can’t be overcome. Once you’re on the right path, you’ll find your sweet spot. Enthusiasm is everything. Social media succeeds because we are social animals. Sharing great information with other humans is embedded in our DNA. Enthusiasm plays a major role in a company’s culture. Empower your employees to create content for your social channels. An enthusiastic team is contagious. Customers will catch it and spread the “awesome.” Teachers teach more by what they are than by what they say. The same is true for your dealership’s brand. It’s no longer viable to just advertise low prices or great service. Your brand is what consumers tell each other it is. Social media affords you the opportunity to show proof of what makes your company unique – to illustrate why customers continue to choose you over the competition. Never mind what others do. Do better than yourself – beat your own record and you’re a success. Many dealers still put a lot of weight on how many Facebook fans or Instagram

followers their competitors have and they judge themselves by it. What matters today in social media is a highly engaged audience that wants to talk about you to their friends. It’s better to have a smaller, engaged group than thousands of followers who’ll never think about becoming customers. Keep score on yourself. Set goals, track KPI’s and measure your progress. That’s how you succeed in social media. People rarely succeed unless they’re having fun at what they’re doing. I can’t begin to tell you the facial expressions I’ve seen when business owners bring up the subject of social media. Whether you agree or not, having fun on social media is one of the keys to success. Drop your preconceived ideas and go have some fun! Experience is a great teacher. I had a client who recently got their first “hater” on their Facebook page. We rode out the storm by remaining patient. Often just having faith your regular, engaged fans will right the ship is all that’s required. It worked this time and the client proved to themselves social media can boost company image. In the future, there will be other haters, but each time you experience these situations, you become better at recognizing how to handle them. Don’t limit yourself. What you believe, you can achieve. With a developed social media strategy, you can engage customers on social media. Many dealers tell me they have to be on social media because everyone else is. While that’s true, they’re limiting themselves by not making an investment. Isn’t your business worth more than a halfhearted effort? It’s not where you start but where you finish. Social media is a seismic shift for every auto retailer. It’s turning companies, especially retail, upside down because operations must be restructured to accommodate customers’ expectations. Wherever you are right now is a good place to start. It’s a moving target – taking swift action matters. Don’t just stand there. Ready. Set. Go. KATHI KRUSE is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc. Kruse Control coaches, trains & delivers webinars focused on integrating social media and online reputation management into dealership operations.

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ACCELERATE

BY GWC WARRANTY

TIPS TO SECURE VEHICLE SERVICE CONTRACT FINANCING How to Convince and Reassure Lenders

If you’ve heard it once, you’ve heard it a million times: “There’s no room on this deal for a vehicle service contract.” It’s a struggle so many dealers face when trying to secure the funding for not just the vehicle sale but also back end F&I products. But there’s no need to fret. Knowing some tricks of the trade can help you convince lenders of the value of a vehicle service contract while also reassuring them that including one on the deal won’t diminish their chances of receiving regular payments. Ask multiple times. Sometimes, all it takes to get a lender on board with funding a service contract is to ask again. If the initial reaction is a “no,” you can remind your lender why a service

contract is beneficial to them and ask again if it’s possible to find a touch more for the back end. Show a Certified checklist. A lender’s primary concern is ensuring they continue to get paid. Nothing can stop that more quickly than a broken down vehicle. Don’t be afraid to show a hesitant lender the checklist from your Certified program to help get them over the edge and on board with a service contract on the deal. It will demonstrate the effort you put into reconditioning and make the lender more comfortable with the quality of the vehicle. Provide protection from delinquencies. Like you and your lender know, a broken down vehicle usually leads to a broken down loan. And what better way to keep a vehicle on the road than a service contract that protects customers from budgetbusting repair bills. Remind your lenders of this fact when attempting to secure back end funding. Stress the importance of protecting subprime customers. One objection you might hear is a customer’s credit score is preventing you from securing additional funding. In this case, you can reference the tight monthly budgets of many subprime customers

as further evidence a service contract is needed. It’s assurance that an already tight budget won’t get tighter because of an unexpected repair, hence keeping the payments rolling into your lender. Build a great relationship. The more you and your lender work together and succeed on deals with a service contract, the more confident you will get with each other. And the more confident you are with each other, the better the prospects for a prosperous and profitable future together. Highlight for your lenders that making a deal work today could lead to many more deals down the road.

MARKETING MATTERS

BY KATIE BARTH

ADVERTISING SMARTER Focusing Ad Spend Where It Counts

2016 was a record year for the automotive industry. After a year of great sales, many dealers are left with a big question: what’s next? We all know the importance of digital advertising, but many spent 2016 just checking the boxes of search, display, and social advertising. The true test comes from a potential customer’s simple search. Is your dealership showing up when they’re looking for you? Advertising successfully online starts with strategy. Far too often we hear things like, “My budget is too small,” “We don’t see much ROI with our ads,” or “We’re competing against a huge dealership down the street – our budget doesn’t allow us to keep up.” Sure, budgets are important, but how you spend them makes all the difference. Advertise the Cars that Need it Sounds simple, right? When it comes to execution, many find it difficult. Think about the vehicles on your lot right now. How many have been there 60 days or more? Which ones are you advertising? Why

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did you pick that vehicle over the one you’ve had for two weeks with little engagement? What about the hottest car of the season that’s getting all of the page views? All inventory is not created equally. Focus your spend on the cars that need the boost. Do you have 10 silver sedans on your lot? Spotlight those over the hot rod you’ve had for three days. The hot rod will inevitably sell itself. Focus on the vehicles that need the boost and you’ll see big results. Strategy in Media Buying The average car shopper spends 75 percent of their product search time on the Internet. Google, Bing, Facebook, Instagram, YouTube, Waze, and the list goes on and on! Successful spending – and advertising – lies in the ability to determine which platform is the most relevant for your target audience and the vehicle you’re advertising. Is your zip code a heavy-traffic area? Hit the customers looking for a route around the traffic with Waze. Wanting to boost your fixed operations sales? Serve an ad for a discounted oil change to the DIYers searching for oil change how-to’s on YouTube. Focus on the Customer Now that you’ve determined what and where to advertise, it’s time to focus on the customer. It wouldn’t make sense to serve

an ad for a sports car to a mom of three watching YouTube videos for installing car seats, but often the focus is more on getting the ad out there than strategy in who the ad is being shown to. Connect the dots between your stocking and advertising, and make sure you’re hitting the right audience with the right message. Instead of worrying about how many zeroes are in your budget, focus your efforts on your strategy. Everyone is checking the boxes of digital advertising, but very few are focused on the details. If your focus is where it should be – the right inventory, the right place, and the right customer – even the smallest dealerships can compete with the large stores for the sale. Set your dealership up for success with strategy! KATIE BARTH is the senior marketing manager at PureCars.

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BHPH MATTERS

BY SCOTT BATES

BHPH AUTO FINANCING TRENDS Learn About Your Competitive Advantage

Subprime lending is alive and well on Wall Street, and not just in real estate. Low interest rates and less consumer demand are prompting lenders to tap into subprime auto finance more than ever. Rather than focus on this increased competition for indirect loans, auto industry experts recommend BHPH dealers focus on operational efficiency and alternative sources of revenue. Dealers who improve cash flow through aftercare products and customer retention can ride out the subprime boom. As a bonus, a more efficient dealership will be less reliant on working capital financing in the future. For start-ups and independent BHPH dealers, a clean structure will create more cash flow and level the field with subprime lenders at banks, credit unions and online. As we’ve said before, your best asset is not your inventory – it’s your credit portfolio. Let’s take a closer look at your competitors

in auto financing. By learning about your dealership’s competitive advantages, you can add more streams of revenue, get more customers to finance on site and get more customer referrals. Auto Financing Trends According to a report by the Center for Responsible Lending, car pricing information available online helps consumers more effectively negotiate the sales price of a car. Because this has reduced the profit margin dealers receive on the sale of cars, all dealers are relying heavily on profits generated after the sale of the car – extended warranties, credit insurance, guaranteed asset protection insurance, vehicle service contracts and so on. In the case of auto financing, however, information is not readily available. Consumers can’t really shop around because financing is based on things like the type of car, the sales price and possible trade-in value as well as the consumer’s credit worthiness. An application for financing is submitted after most decisions are made – and that application could happen online or with the customer’s local bank or credit union. Due to most consumers’ large appetite for used vehicles and lower tolerance for debt,

BHPH dealers face increased competition from brick and mortar lenders and online deep subprime lenders. These lenders are accepting a larger share of consumers to finance for smaller loans than they would prior to the recession. BHPH dealers are a final destination for the least credit-worthy consumers who can’t get a loan anywhere else. This demographic is not easy to manage in collections anyway, which is typically why many BHPH dealers focus on repossession and resale more than on collections and service. We get it. The competition to control financing is tough. Cash flow is tight. Inventory at auction isn’t what it used to be. You are competing for fewer cars with higher mileage and higher average cost per vehicle. However, BHPH dealers who focus on what they can control are faring better with customers and profits. A good place to start is to seek outside expertise from professional associations and your CPA.

from Port Arthur, Beaumont and Houston as well. “We have experienced tremendous volumes of rain and experienced some flooding,” said Lake Charles Auto Auction owner Matt Pedersen, “but nothing like our neighbors in Texas.” Pedersen had to postpone his weekly Wednesday sale to Friday (Sept. 1) to accommodate Harvey’s second landfall, but the auction has weathered the storm well. “This delay has given us time to begin the logistic preparations that will occur in coming weeks,” Pedersen said. “Vehicles will be moved across the country to begin replacing the thousands of vehicles flooded and destroyed throughout Southeastern Texas and in pockets of Louisiana.” Lake Charles Auto Auction wholesales about 350-500 units a week to new and used car dealers throughout the region, with about 75 percent of the vehicles coming from dealer consignment. Vehicles also include off-rental units from Enterprise Rent-A-Car and well as vehicles wholesaled by several credit unions in the area. Located along the I-10 corridor, midway between Baton Rouge, La., and Houston, Lake Charles Auto Auction is ideally located for automotive transportation companies to move wholesale units from north and east

to the regions affected by the widespread flooding. “We have heard from consignors around the tri-state area who want to be able to market their vehicles to dealers who must fill this important need quickly and efficiently,” Pedersen said. “The transportation companies like the logistics of our location to facilitate the movement of vehicles from around the state.” Remarketing experts have seen the effects, both long- and short-term, of massive flooding before. Salvaged vehicles have their titles branded, and they can no longer be sold for use on U.S. roadways. As a result, vehicles from across the country flow into the effected region. Typically, in the short term, used vehicle values rise as demand soars. Because auto insurance pays for flood damage on fully covered vehicles, though at replacement cost, vehicles can be replaced quickly. “Given the extent of this disaster,” Pedersen said, “we expect the need for slightly older and late-model used cars, trucks and SUVs to last for months. We will be doing all we can to help facilitate this recovery. The first thing people will need to begin the process of getting their homes and businesses back in order is a vehicle.” To learn more about Lake Charles Auto Auction, visit lcautoauction.com or call 337-433-8664.

SCOTT BATES, CPA, is a partner in the audit practice and leads Cornwell Jackson’s Business Services Department, which includes a dedicated team for outsourced accounting, bookkeeping and payroll services. Contact Scott at scott.bates@cornwelljackson.com or 972-202-8000.

AUCTION NEWS

LAKE CHARLES AUTO AUCTION PREPARES FOR REGION’S RECOVERY Auction to Assist with Transportation Needs

The devastating effects of Hurricane Harvey on Southeast Texas will last for years. Among the first needs will be replacing the thousands of vehicles destroyed by the epic flood. Lake Charles Auto Auction is making preparations to assist in remarketing vehicles to replace vehicles lost as a result of the storm as the region recovers from the unprecedented, devastating effects of Hurricane Harvey. Located just miles north of where Tropical Storm Harvey made its second landfall on the continental U.S., Lake Charles Auto Auction serves automotive dealers from Lake Charles, Baton Rouge, Lafayette and New Orleans and throughout Louisiana, and because of its proximity to Southeast Texas, regularly serves dealers

OPEN ROAD October/November 2017

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WASHINGTON UPDATE

BY SHAUN PETERSEN

NIADA GOVERNMENT UPDATE 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. PAC The featured speaker at NIADA-PAC’s upcoming event will be the Speaker. Paul Ryan (R-Wis.), Speaker of the U.S. House of Representatives, will be the highlight of a business roundtable discussion hosted by the NIADA’s political action committee on Oct. 17. Ryan will discuss issues related to business and the used vehicle industry with industry leaders in an informal setting.

on the Senate Committee on Commerce, Science and Transportation – recently sent a letter of inquiry to several Buy Here-Pay Here dealers and subprime finance companies across the country. While Sen. Nelson acknowledged what we in the industry have been pointing out for years – the use of the devices allows creditors to extend more credit on better terms for better vehicles to customers who otherwise might not qualify for those terms – his letter expressed concerns of consumer advocates about data privacy and safety. Nelson cited unsubstantiated claims from consumers who said their vehicles were shut off while they were driving. He also attempted to link the use of the devices and an alleged rise in subprime auto loan delinquencies to the 2008 mortgage crisis. In response, I traveled to Washington D.C. with NIADA legislative committee and BHPH commission member Mike Brill to meet with the senator’s staff. We spent an hour educating the staff about the use of the devices in BHPH

Rep. Steve Stivers (fourth from left) was joined at his fundraiser by (left to right) Shaun Petersen, Steve Jordan, Columbus Fair Auto Auction owner Alexis Jacobs, David Andrews and Andrew Gabler. For more information about the event and how to attend, contact me at 1-800682-3837 or shaun@niada.com. On Aug. 23, NIADA CEO Steve Jordan and I, along with NIADA president David Andrews and president-elect Andrew Gabler, attended a fundraising event for Rep. Steve Stivers (R-Ohio) at Columbus Fair Auto Auction in Columbus, Ohio, and presented Rep. Stivers with a contribution of $4,995 from the NIADA-PAC fund. Stivers serves on the House Financial Services Committee and is a member of the Congressional Automotive Caucus. He has been a proponent of policies to strengthen small business and was a featured speaker at NIADA’s 2014 National Leadership Conference and Legislative Summit. LEGISLATIVE Payment assurance devices have attracted attention on Capitol Hill. Sen. Bill Nelson (D-Fla.) – the ranking Democrat

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dealerships and their related finance companies. We explained the devices are a tool for dealers and finance companies to communicate with customers to assist in account servicing, rather than immediately repossessing a vehicle. We assured them it is not possible for payment assurance devices to shut off vehicles while they are in operation because the devices are not connected to the engine. NIADA will continue to monitor the situation. REGULATORY Near the end of the Obama administration, the Department of Labor issued a rule that would have significantly changed the salary threshold for white-collar employees to be exempt from overtime compensation, raising it from $23,660 annually ($455 per week) to $47,476 ($913 per week). But in November, just before the Dec.

1 date when it was supposed to take effect, a federal judge in Texas issued a temporary injunction against the effective date of the rule. After hearing arguments in the case, Judge Amos Mazzant permanently struck down the rule on Aug. 31, saying the government had overstepped its authority. And last month, the Department of Justice asked the court to dismiss its pending appeal of the judge’s temporary restraining order. Just before the judge’s ruling, the Department of Labor published a new request for information asking for feedback on questions defining the duties and appropriate salary level one must have before being exempted from overtime, including whether nondiscretionary bonuses and incentive payments should be considered a portion of the salary. One of the issues from the struckdown rule being examined by the request is whether that salary level should be automatically updated. NIADA is reviewing the request and will submit appropriate comments. GRASS ROOTS New York Attorney General Eric Schneiderman, who has targeted dozens of car dealers with allegations of regulatory violations over the past year, has put another dealership in his crosshairs. In August, Schneiderman announced a $298,000 settlement with Nissan of New Rochelle for deceptively charging 298 consumers for what he called an “unwanted and bogus anti-theft product that cost up to thousands of dollars per consumer.” The cost of the product – a windowetch program that included a “Total Loss Protection” benefit – was tacked on after customers had agreed to a price for the vehicle and often without their knowledge or consent, Schneiderman said. In addition to refunding the cost of the product, which ranged from $215 to more than $5,000 per vehicle, the dealership agreed to pay the state $22,084 in penalties, fees and costs. It also agreed to fully disclose that any and all after-sale services or products are optional and that the price is negotiable, to clearly explain after-sale services or products being offered to customers, and to only add an after-sale service or product to the final bill with the knowledge and full consent of the consumer. SHAUN PETERSEN is NIADA’s senior vice president of legal and government affairs.

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MANAGEMENT MATTERS

BY DALE POLLAK

HOW LITTLE THINGS DETERMINE YOUR SUCCESS Details Matter “It’s life by a thousand little things, or death by a thousand cuts.” A dealer recently shared this line as we were discussing how the car business has changed in the last 25 years. The dealer’s observation strikes me as a perfect, cleareyed summation of how efficiency, technology and transparency have made retail automotive a much different environment for dealers. Consider the following common, everyday tasks and how much the little things matter more than ever before. Stocking Vehicles For years, many franchise dealers have followed a fairly reasonable strategy as they order factory vehicles: Stock as many of the cars they know they can sell, based on what they’ve sold. But here’s the problem with this strategy today: It’s too passive. It relies too much on history, and your factory partner. It can ignore, and miss, faster-moving retail trends that help you maintain, if not gain, sales and market share. It’s also imprecise. The situation is very much the same in used vehicles. Variances in vehicle color, condition, mileage and specific equipment make the difference in determining a vehicle’s wholesale or retail value, and its likely appeal among potential buyers, given competing vehicles in the market. It’s easy for an appraiser or buyer to make costly mistakes if they’re relying solely on what they know, rather than augmenting their intelligence with market data. Pricing Vehicles It wasn’t that long ago pricing vehicles was fairly easy. In new vehicles, you pretty much only needed the MSRP or “Call for a Great Price!” In used vehicles, your retail price was just a standard mark-up away from the cost of the unit. Pricing cars didn’t require much critical thinking and, if you made a mistake, buyers forgave you, and they were none the wiser. Today, it’s so very different. Many consumers know almost exactly how

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much they should pay for a vehicle and get a fair deal. They know if your vehicle’s price is in, on or off the market, given the car’s color, condition, equipment and other particulars. They won’t even bother if your prices don’t fit their perception of fair purchase parameters for that vehicle. The environment means that if your prices fit in the context of a consumers’ competitive set, you’re in the game. If not, you’re out. Likewise, if you’re too deeply in the game, you stand a good chance of giving up gross. On top of all this, you’ve got the constant ticktick-tick of inventory age undermining your gross profit potential. Simply put, it’s impossible to price effectively without some kind of technology or tool to help you optimize each vehicle’s market price position. Engaging Buyers It’s easier than ever for consumers to find the vehicle(s) they want to purchase, and the price they think they should pay. It’s also fairly easy for them to find at least one dealer, in virtually every market, who claims to offer a different, hassle free car buying experience. We also know most consumers will only visit one, possibly two, dealers before buying a vehicle. As a result, some dealers take every customer engagement very seriously. To them, every customer conversation, email, instant chat or text message could be the last. “We truly believe that it’s almost as if the customer is looking for a reason not to do business with us,” said the COO for a West Coast dealer group. “We work very, very hard to make sure they don’t find that reason.” Today’s car business may be different, and arguably more difficult, than it used to be. But it’s still a healthy, viable business where success awaits those who properly apply themselves to its pursuit. My dealer friend is correct. The little things matter more than ever. To paraphrase an old saying, “The devil is in the details, and so is your next deal.” DALE POLLAK is the founder of vAuto and an executive with Cox Automotive. This column ran on his blog on June 19. For this story and all his posts, visit www.dalepollak.com.

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MANAGEMENT MATTERS

BY AUTO REMARKETING STAFF

DATA SECURITY WARNING Your Dealership May be Vulnerable

Helion Automotive Technologies has a new data security warning for auto dealerships. In recent weeks spear phishing hackers have been busy planting malware inside social media posts designed to lure employees of organizations to click on them. Dealership employees are ideal targets for spear phishers looking to grab personally identifiable information and bank account information. “This is the same spear phishing scheme that hackers have been using successfully in targeted email messages for several years now,” Helion president and chief executive officer Erik Nachbahr said. “The problem is that although most employees have been told and know not to click on emails from people they don’t know, they don’t think twice when it comes to clicking on a message or offer in their Facebook feed. They are more trusting in a social media environment.” If employees take the bait of hackers and click on infected links, malware can be downloaded onto the employee’s computer, compromising the entire organization’s network. Helion recently conducted a phishing test at an auto dealership by sending emails to 125 employees. Three employees took the bait. When prompted by

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the website the email drove them to, they entered both their usernames and passwords. If the attack were real, the consequences could cost a dealership thousands of dollars. “That test was a good sample that revealed auto dealerships are very vulnerable to this type of attack and need to do a better job at educating their employees,” Nachbahr said. Nachbahr’s tips for preventing a spear phishing attack: • Instruct employees to never click on links in social media posts and messages from their computers or personal devices while at work. • Require employees to change their network login passwords every 90 days. • Encourage employees to keep social media profiles private and not accept friend or connection requests from people they don’t know. • If employees receive a phone call, email message or social media message from a banking institution, vendor or other entity asking for personal information, do not give this information verbally or via email. Contact the institution directly. • Get cyber liability insurance, which covers costs associated with a data security breach and loss of data. • Regularly apply software updates to Microsoft Windows, Internet Explorer and all software applications on every PC.

DEALERSHIP EMPLOYEES ARE IDEAL TARGETS FOR SPEAR PHISHERS LOOKING TO GRAB PERSONALLY IDENTIFIABLE INFORMATION AND BANK ACCOUNT INFORMATION.

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SALES MATTERS

BY JOHN CHAPIN

THE BIGGEST MISTAKES SALESPEOPLE MAKE Avoid These Common Mistakes

Mistake: Thinking that servicing accounts is more important than selling new ones. I once had a client show me a stack of folders and say, “This is why I can’t be out calling on new clients.” When I asked what had to be done, she picked up the first folder and said, “I’m waiting for a number from the State of Rhode Island on this one.” I responded, “Really? A salesperson is sitting in the office waiting for a number from the State of Rhode Island? No one else can handle that?” That is akin to a pilot saying they don’t have time to fly the plane because they are serving passengers drinks. I’ve heard every excuse for servicing accounts from “they’ll only deal with me” to “I want to make sure it’s done right.” These are simply excuses to avoid the hard work of going out and making calls. Salespeople are hunters, service people are gatherers. Outside of renewals, scheduled service calls, and emergencies, clients should be dealing with CSRs and other support people. Not only are the support people more readily available than the salesperson, who should be out chasing new business, they also handle the day-to-day service items more efficiently and effectively than a salesperson. As a salesperson your job is to sell, not service. If you are hiding behind the excuse your clients will only deal with you, that’s because you’ve trained them to do that. It’s time for retraining. If you think you are the only one who can do it, you’re wrong, so get over yourself. Any time you are servicing, outside of renewals, scheduled calls, and major issues, you are doing yourself, your company, your client, and your future clients a disservice. It’s a lose/ lose situation. Go sell and stop hiding behind service. Mistake: Majoring in minor things and finding other time wasters. I once had a sales manager say, “During the major snow storm last week, when people were confined to their houses, my top salesperson was calling people at home because he had a captive audience. My other salespeople were baking cookies and posting pictures on Facebook.” This, along with chatting with friends and colleagues, checking email more than four times a day, taking 10 coffee breaks and, in general, finding things to do other than calling on prospects and customers, are examples of time wasters. Spending two hours looking up prospect information before you call, servicing clients on routine items as in the mistake

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listed above, and spending time practicing your call 400 times before the call, are all examples of majoring in minor things. Your highest priority is to spend time with prospects and sometimes your top 20 percent of customers (again, renewals, scheduled calls, and emergencies). You should be talking to, or on your way to talk to, prospects and customers 80 percent of the time during prime calling hours. Mistake: Focusing on reactive versus proactive marketing. The fastest and best way to build business is by making phone calls and knocking on doors. It is the most effective and only one in which you have almost complete control. Going to a Chamber of Commerce event, BNI, or similar networking event, hoping to get a lead is reactive. In those situations you are relying on others, whose first priority is to get business for themselves, to give you business. Worse yet, hanging out on social media or sending blind, unsolicited emails in hopes of getting business is also reactive. Mistake: Not being prepared for and not practicing sales situations. If you are in leadership, I dare you to walk up to one of your salespeople who has been with you a while and ask, “What do you say when someone says…” and then give them a common objection such as “they’re not interested.” Nine times out of 10 the first verbal sound out of their mouth will be “Ahhhh.” It happens to me all the time. Just last week at an insurance sales meeting, I asked an agent who’s been there 17 years, “What do you say when someone says I can get my insurance cheaper down the street?” The response? You guessed it: “Ahhhh.” Game over. You have to be prepared for every sales situation you’re going to encounter and you have to practice ahead of time. Ideally practice with another human, but if not, by yourself. Each answer has to be scripted and committed to memory so you know it verbatim and can respond immediately in a real-life sales situation. Mistake: No goals, no plan, and no clue how much activity has been done, or needs to be done, to be successful. Whenever I begin working with someone one of the first questions I ask is, “How many calls did you make last week on brand new prospects?” As with the objection above, I am usually met with “Ahhhh.” Usually followed by a guess, such as, “Um, I think about four.” “You think four? Is that number too big to count?” The truth is: they didn’t keep track and it wasn’t four. It may have been two, or even zero. To be successful, you have to have annual, monthly, and weekly goals, along with knowing the daily activity necessary to make

YOU HAVE TO BE PREPARED FOR EVERY SALES SITUATION YOU’RE GOING TO ENCOUNTER AND YOU HAVE TO PRACTICE AHEAD OF TIME. those goals a reality. Then you have to make the calls. Mistake: Giving up too soon. Eighty-one percent of sales are made after the fourth contact. Roughly 20 percent of salespeople make it past the fourth contact. Mistake: Not doing the work necessary. Ninety-nine percent of the time a salesperson fails it’s due to a lack of activity: Not making enough calls to talk to enough people to make enough sales. The other 1 percent of the time, the salesperson got hit by a bus. Since activity is the primary reason for success or failure, I could have led off with it, but it’s so obvious you probably would have stopped reading. JOHN CHAPIN is a sales and motivational speaker and trainer. He has over 27 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.

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MARKET WATCH

BY AUTO REMARKETING STAFF

STUDY REVEALS MEN’S & WOMEN’S FAVORITE CAR COLORS Yellow and Teal iSeeCars.com recently released the findings of its annual Car Color Preferences by Gender Study, which found men’s interest in yellow and orange vehicles has significantly increased this year. The study also found that men’s new preferred car color is yellow. Last year, orange ranked first among men. Women’s current favorite car color is teal. The study reveals they have a stronger preference for teal cars by 19 percent. More Details on Preferences Since last year, men’s preference for yellow cars increased 63.8 percent, and their preference for orange cars increased 41.7 percent. iSeeCars said an increase in market share of yellow convertibles could explain men’s

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growing preference for yellow. Convertibles made up only 11.8 percent of yellow cars in the study in 2015, and last year that number rose to 13.9 percent, according to the automotive data and research company. Because convertibles make up only 1.9 percent of all cars, iSeeCars.com suggests this finding illustrates men’s stronger interest in sporty and flashy cars when compared to women. Currently, men favor yellow more than women do by 33.9 percent, followed by orange (32.6 percent) and black (14.2 percent), according to the study. As for the results among women, iSeeCars found that since the first color preferences study in 2013, this is the first year teal has shown up in the women’s rankings. Ranking fifth at 4.3 percent, green also appears on the women’s list for the first time. iSeeCars said teal reflects an interest in more practical cars, such as minivans. While the minivan makes up just 3.7 percent of all cars, 7.8 percent of all teal vehicles are minivans, according to the site. Additional Differences “Men and women don’t just like different colors,” iSeeCars.com chief executive officer Phong Ly said. “Our

research shows men’s preferences are much stronger than women’s, and the top color choices for both of them have actually grown to the highest percentages we’ve seen in four years.” Additionally, men’s and women’s differing preferences are also reflected in the prices they wish to pay. “If you compare prices for pre-owned cars, the average price for men’s favorite colors is 22 percent more expensive than women’s favorite colors,” Ly said. Men’s top ranked yellow cars are 86 percent more expensive than women’s teal cars, according to iSeeCars.com. On average, the cars in the colors men prefer cost $3,258 more than women’s choices. The study found that among women, $14,938 is the average used car price for the colors they prefer, compared to $18,196 for the colors men favor. The average used price for a yellow car is $20,601, while the average for teal cars is just $11,053. iSeeCars.com looked at data from consumer car inquiries between calendar years 2015 and 2016. The site said it analyzed more than 700,000 consumer inquiries and nearly 30 million car sales to identify car color preferences by gender. According to the company, it categorized male and female study responses based on participants’ first names.

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INDUSTRY NEWS

MANHEIM ANNOUNCES RETIREMENT OF JAY CADIGAN Member of NIADA Ring Of Honor Manheim recently announced vice president of industry relations Jay Cadigan is retiring. His retirement marks the end of a renowned automotive industry career spanning four decades, including leadership positions in the auction as well as leasing and rental car remarketing businesses. “There’s no question Jay has been a driving force at Manheim and within the remarketing industry for some 40 years,” said Cox Automotive Inventory Solutions president Janet Barnard. “He’s been instrumental in helping Manheim maintain its leadership position and worked tirelessly to shape the industry. We can’t thank Jay enough for all he’s done for our company, our clients and the industry.” As vice president of industry relations since 2012, Cadigan led Manheim’s strategic efforts to develop, promote and establish consistent standards, processes and policies that further the industry. Prior to that, he served the company as market vice president for Florida and Puerto Rico, president of sales and operations for the General Motors and Avis Budget Group accounts and general manager of Skyline Auto Exchange, now Manheim NY Metro Skyline. Throughout his career, Cadigan served the remarketing industry in National Auto Auction Association volunteer leadership roles. A 2015 inductee into the NAAA Hall of Fame, he is a past president of the association and current member of its executive committee and board of directors, serving as executive vice president. Cadigan is also a past president of the Eastern Auto Auction Association. “Jay’s dedication and commitment to advancing the automotive remarketing profession has been invaluable,” said NAAA chief executive officer Frank Hackett. “His leadership encouraged the development of our association members and the organization alike.” Other recent industry honors include Cadigan’s 2016 induction into NIADA’s Ring of Honor and being named Remarketer of the Year at the 2015

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Conference of Automotive Remarketing. Cadigan began his automotive career working at a car dealership before earning a bachelor’s degree in business management from St. Mary’s College of California. Prior to joining Manheim in 1993, Cadigan sharpened his customer relations and team building skills as assistant general manager of Golden Gate Auto Auction in Fremont, Calif., and gained remarketing experience by working with US Fleet Leasing, Avis Car Leasing and Hertz. “One of my most rewarding career

experiences has been watching Manheim and the remarketing industry’s growth and innovation over the years,” said Cadigan. “And, I’ve been fortunate to work alongside some of remarketing’s finest pros, and my years at Manheim are no exception. It’s been an amazing journey, and I’ll forever cherish the relationships I’ve forged over the years.” Looking ahead, Cadigan plans to spend more time golfing, boating, traveling and volunteering in his local community.

October/November 2017 OPEN ROAD

LIADA AUCTION MEMBERS ADESA Shreveport

Louisiana’s 1st Choice AA

Alexandria Auto Auction

Long Beach Auto Auction

America’s Auto Auction Baton Rouge

Manheim Lafayette

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

3960 Blount Road Baton Rouge, La 70807 225 778 3737 www.auctionbroadcasting.com Sale Thursday

18310 Woodscale Road Hammond, LA 70401 985-345-3302 Phone 985-343-5735 Fax www.lafcaa.com Sale Tuesday at 8:45 a.m.

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

Manheim Mississippi

1826 Almeda Genoa Rd. Houston, TX 77047 281-819-3600

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.

Bayou State Auctions, LLC

Manheim New Orleans

America’s Auto Auction Houston

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

Brown’s Auction Co.

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

6249 Hwy 190 Eunice, La 70535 Mid-South Auction Phone: 337-457-4919 1657 Old Whitfield Road www.brownsauction.com Jackson/Pearl, MS 39208 Sale is quarterly (call for more 601-956-2700 Phone information). 601-956-5603 Fax www.midsouthaa.com Copart Sale Tuesday at 9 a.m. 21595 Greenwell Springs Rd. Greenwell Springs, LA 70739 Mike McTurner Dealers 225-261-0102 136 Gregory Drive Monroe, LA 71202 Greater Shreveport-Bossier 318-343-8200 Phone 1315 Grimmett Drive 318-343-8259 Fax Shreveport, LA 71107 www.dealersautoauction 318-221-3362 Phone monroe.com 318-221-3372 Fax Sale Tuesday at 10 a.m. www.gsbautoauction.com Sale Wednesday at 1 p.m. Oak View Auto Auction 13451 Florida Blvd Insurance Auto Auction Baton Rouge, LA 70815 29000 Frost Road 225-272-5139 Phone Livingston, LA 70754 225-272-5314 Fax 225-686-9197 Phone www.oakviewautoauction.com 225-686-8197 Fax Sale Friday at 10 a.m. www.iaai.com Sale Monday at 9 a.m. Z66 Auto Auction 66 N Mingo Lake Charles Auto Auction Tulsa, OK 74116 2435 E Broad Street Phone: 918-794-0660 Lake Charles, LA 70601 www.z66aa.com 337-433-8664 Phone Sale Friday at 11:30 a.m. 337-436-7197 Fax www.pedersenandpedersen.com Sale Wednesday at 5:30 p.m.

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*Auction Discount Coupon Books worth $4,650.00 available to LIADA members. Coupons can be redeemed at the following participation auctions.

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LIADA DEALER SERVICE PROVIDERS ADVERTISING DEALER SUPPLIES / FORMS My Dealer Supply Company Auto Sweet Eric Stroderd Christopher Lentz ericstroderd@mydealersupply.com lenny@autosweet.com 311 A West University 3240 W. Henderson Rd. Lafayette, LA 70506 Columbus OH 43220 Phone: 877-427-1238 Phone: 614-448-9089 Romano Promotions LLC ATTORNEY Megan Romano McGlynn Glisson Mouton megan@romanopromo.com Attorney at Law 42062 Gardens Blvd Christopher D. Glisson Hammond, LA 70403 chris@mcglynnglisson.com Phone: 985-634-8274 340 Florida St. DETAILING Baton Rouge, LA 7080 Phone: 225-344-3555 Jose Upholstery Jose Delgado Tureau & Tureau, APLC 4776 Fairfields Ave. Ralph Tureau & Steven Tureau Baton Rouge, La 70802 steven@tureaulawfirm.com Phone:225-316-4575 12320 Hwy 44 Suite 3C Gonzales, LA 70737 M M Topshelf Detailing & Recon Phone: 225-647-8529 Lonnie McCauley Fax: 225 647-8530 lmccauley@eatel.net 4452 Jeffery Dr. AUTO PARTS Baton Rouge, LA 70816 ABC Auto Parts Phone: 225-603-4600 Larry Pyle Fax: 225-622-5994s dereck@abcauto.com FINANCES P.O. Box 3627 Longview, TX 75606 American Credit Acceptance Phone: 903-232-3060 Rachel Swain callie.kwiatt@acacceptance.com AutoZone Phone: 864-308-4380 Derlyn Odom 961 E. Main St. deryln.odom@autozone.com Spartanburg, SC 29302 6517 airline why Metairie LA, 70003 AppOne 228-990-5669 Penny Bearb Pull A Part 6815 Saukview Dr. Toby Thompson St. Cloud, MN 56303 Baton Rouge, LA 70814 pbearb@appone.net Phone: 225-247-9160 www.appone.net Phone: 877-277-6631 x1228109 BODY SHOP Automotive Finance Company Custom Colors 11221 Cedar Park Ave. Pete McKnight--Billy Rapp Baton Rouge, LA 70809 customautocolors@gmail.com Julie@teamhonda.com 11550 Cloverland Ave. www.automotivefinancecompany.com Baton Rouge, LA 70809 Phone: 225-293-6488 Phone: 225-752-5947 Fax: 225-752-5940 Center Street Finance, LP 200 N. Mesquite, Suite 202 BUSINESS SERVICES Arlington, TX 76011 Davenport Business Services LLC Phone: 682-777-2002 David Davenport Fax: 817-887-4976 david@davenportbusinessservices.com Central Credit Inc. 14 Concord Place Charles E. Spedale Gulfport, MS 39507 skebdees@yahoo.com Phone: 228-547-9219 4303 Plank Rd. Baton Rouge, LA 70805 CONSULTING Phone: 225-356-4656 DealerDynamix Fax: 225-356-4656 Joseph Ventura First Consumers Financial, LLC jventura@dealer-dynamix.com Bob Chedville 6671 W Indiantown Rd. bob@fcfcarloan.com Jupiter, FL. 33458 14580 Florida Blvd. Phone: 866-970-8929 Baton Rouge, LA 70819 CREDIT CARD SERVICES Phone: 225-272-9009 Applied Merchant Nationwide Acceptance Jeff Gallo Martin Less jgallo@appliedmerchant.com mless@nac-loans.com 26775 Malibu Hills Rd. 3435 N Cicero Ave. Calabasas, CA 91301 Chicago IL 60641 Phone: 800-236-2179 Phone: 800-622-7605 DEALERSHIP MAINTENANCE

Preferred Loans LLC Shana Quick preferloans@eatel.net 12241 Roddy Rd. Gonzales, LA 70737 Phone: 225-644-0304 Fax: 225-644-6862

Integrity Audio Visual LLC Steve Clay steve@integrity-av.com 39089 South Angelle Court Gonzales, LA 70737 Phone: 225-235-1528

Westlake Financial Services Rob Wilson 4751 Wilshire Blvd, Suite 100 Los Angeles, CA 90010 dealers@westlakefinancial.com www.westlakefinancial.com Phone: 888-8YES-YES

DEALER MANAGEMENT SYSTEMS

Dealer Market Exchange Holly Jonsson holly@dmx.io B5 Calle Tabonuco Guaynabo PR 968 Phone: 970-749-0851 Frazer Computing Inc. help@frazer.com P.O. Box 569 Canton, NY 13617 Phone: 1-888-963-5369 Fax: 1-888-963-3366

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FLOOR PLAN

AFC Tim Ormiston 1610 A St. Mary St. Scott, La. 70583 timothy.ormiston@autofinance.com www.Afcdealer.com Phone: 337-593-8992 AFC Michael Meyers Michael.Meyers@autofinance.com 18310 Woodscale Rd. Hammond La. 70401 Phone: 877-739-0218 Automotive Finance Corporation Cassie Lasley 106 Village St. Suite 1 Slidell, La 70458 Office: 985-288-6431 Cell: 504-235-4264 Cassie.Lasley@AutoFinance.com www.AFCDealer.com CarBucks Floor Plan Brandon Ziebarth www.usecarbucks.com 381 Halton Road Greenville, SC 29607 Phone: 225-819-6747 NextGear Capital 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

S. Brown Associates 150 River Rd. M3 Montville, NJ Phone: 973-270-2270

Express OMV Brooke Barnett Phone: 225-243-6925 485 Florida Blvd. Denham Springs LA 70726 LeBlanc Auto Title Company 1116 E. Cornerview St. Gonzales, LA 70737 Phone: 225-644-4591 Fax: 225-644-8207 hopeleblanc@eatel.net

Safe Lily Insurance Agency Laquica Fisher lfisher@safelilyins.com 720 Burnside Ave. Gonzales, LA 70737 Phone: 225-450-2009 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

Cars.com 75 W. Jackson Blvd. Suite 800 Chicago, IL 60604 Phone: 312-601-5188 Interactive Financial Marketing Group Travis Weisleder dealerinfo@interactivefmg.com 1509 West Main St. Richmond, VA 23220 Phone: 804-225-1880 Showroom Logic 47013 N. Morrison Blvd. Hammond LA 70401

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 VEHICLE HISTORY

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

AUL Corp Shelton Green shelton@sadrinc.com 1250 Main St. Suite 300 Napa, CA 94559 PAINT TOUCHUP & INTERIOR REPAIR Phone: 504-722-8123 GPS MasterMatch Centurion Automotive Eddie Krueger Position Plus GPS Consultants eddielsufan@yahoo.com Andy Seckinger Danny Delich 1104 Pine St. Suite A aseckinger@spireon.com centurionautomotiveproducts@gmail.com Monroe LA 71207 950 Market St. Atlanta, GA Phone: 318-322-2886 Shreveport, LA 71107 Phone: 470-955-9757 563-581-7693 SECURITY SYSTEMS CTR Warranty, LLC SVR Tracking Integrity Audio Visual LLC Ken Rugg Zanita Phillips Steve Clay 319 North 3rd St. Zphillips1225@gmail.com Steve@Integrity-av.com Monroe, LA 71201 950 N. Market St. 39089 South Angel Court Phone: 318-323-6385 Shreveport, LA 71107 Gonzales, LA 70737 Phone: 318-286-6297 Ferrell Dealer Services 225-235-1528 18016 Shadow Creek Ave. INSURANCE & BONDS Baton Rouge, LA 70816 RENTAL CAR Affordable Insurance Solutions Enterprise Rental Car Phone: 225-978-5111 Janis Fallaw fspruell@gmail.com 3545 N 1-10 Service Rd., Ste. 101 agentj0912@aol.com Metairie, LA 70002 GCWS, LLC 751 Hwy 51 Phone: 504-454-1717 Rock Brunet Madison, MS 39110 rockbrunet@gmail.com Phone: 601-856-9447 RENT TO OWN 101 Shumard Dr. Seadra Inc. Carmouche Insurance Inc. Lafayette LA 70508 John Garner 516 N. Burnside Ave Phone: 337-258-2998 john@seadraonline.com Gonzales, LA. GWC Warranty 10555 Lake Forrest Blvd. Phone: 225-647-8552 James W. Hester New Orleans LA 70127 Charles Carmouche jhester@gwcwarranty.com charles@carmoucheinsurance.com Phone: 504-241-0211 40 Coal St. Crossland Insurance Agency Wilkes-Barre, PA 18702 TIRES Andrew Arceri Phone: 225-771-9766 Cooper Tire and Rubber Company andrew@crosslandins.com Michael Wertz Protective Solution LLC 1101 Hwy 90 E. mtwertz@coopertire.com Rick Cole New Iberia, LA 70560 820 Rivers CreekLn. rcmarketingllc@me.com Phone: 337-367-6035 Little Elm, TX 75068 4211 Sterlington Rd. Phone: 567-525-2765 Dwight W. Andrus Insurance Monroe, LA 71203 Bonnie Dozier Phone: 877-697-2533 TITLE – NOTARY bbd@andrus.com PWI Dealertrack Registration P.O. Box 60970 Sharon Coleman and Titling Services Lafayette, LA 70598 sharon@warrantys.com Processed by Auto Title Express Phone: 337-981-7300 PO Box 278 Amy Casey Insurance & Bonds, LLC Orwigsburg, PA 17961 3445 Causeway Blvd Suite 103 John Sonnier Phone: 800-548-1121 Metairie, LA 70002 9131 Interline Ave. #10-B 7 locations throughout Louisiana! Baton Rouge, LA 70809 Southern Auto Dealer Resources Go.dealertrack.com/LA Jsonnier60@gmail.com 704 Hickory Ave. Contact Sales: 888.346.3087 Phone: 225-922-3700 Harahan, LA 70123 Shelton Green sheltongreen3@aol.com Phone: 504-466-88002

October/November 2017 OPEN ROAD

MANAGEMENT GAMEPLAN

BY SCOTT BERGERON

DOES YOUR SALES PROCESS MEASURE UP? Time to Fine Tune

Are you fed up with your sales team? Your processes? If you’ve watched your salespeople get too comfortable and satisfied with their own performance, maybe it’s time to shake things up. And I’m not talking about sweeping house and starting over. One of the best salespeople I ever met was Jeff Barber. He’s now retired and living an awesome life, fishing and hunting in the Colorado Rockies. Jeff would always give me advice when I was working my way up, first as a green-pea, then in management. Jeff is a former drag racer. He said, “Selling cars is a lot like drag racing – everyone’s got an engine, and if they’re all built the same way, the one who does the best job of fine tuning his car will win. If you lose a race, you don’t tear apart the engine – you fine tune the obvious problems. “Besides, spark plugs are a lot cheaper than an engine rebuild. We all have the same opportunities in sales, but it’s the guys who work smarter and fine tune themselves and their daily routines who will win.” There’s huge danger in thinking you’ve got everything dialed in – especially when it comes to fundamental items in your dealership. For example, have you reviewed your contract and financing forms to make sure they’re easy to read, navigate and understand? Coasting along without conducting basic inspections of basic processes will lead to problems. Without this step, you’re likely letting profits walk out the front door – in many cases without even knowing it. Then, there’s the other side of the equation – where your processes are so bad everybody knows about it. United Airlines is an example. Their “established” policies led to a firestorm of public criticism and severely damaged their reputation when they dragged a bleeding passenger off a plane. Lack of knowing or lack of inspections will harm your dealership. In the long run, it could damage its reputation, which could take years to bring back to glory days. Here’s an example. One of the nation’s largest dealers recently sold me and my wife a car, but not without many hours of illegible paperwork, and frustrating old school 4-square processes that didn’t even pertain to my situation. If a customer brings in a 60 percent down payment of a free and clear trade, and the salesperson says, “They can’t calculate the payments unless you put cash down,” it can

OPEN ROAD October/November 2017

be a little frustrating to say the least. And no, this wasn’t a green pea. It was an eight-year veteran, and yes the desk required a cash dollar down before they would work up figures, apparently to adhere to established policies. After this silly process, the paperwork was hard to read and looked like it had been copied repeatedly since 1993. Finance processes and slowdowns also can lead to hours of unproductive time for staff, not to mention the reputation it’s putting into your customer’s head. If it can happen in a big box store, it can happen anywhere. Here’s where and how to fine tune your sales engine without large amounts of cash or time investment. Who are you selling to? Whether business is good, decent, or falling off a cliff, look at where sales are or are not coming from. If your dealership has a loyal base of aging customers, you’d better start planning for the next generation of buyers – who have demands, expectations and values different from your older customer base. Ask around, talk to Millennials and find out what they want, what would bring them in the dealership, and what turnoffs exist. Many younger generation buyers don’t believe in the dealership model at all, so you’d better have your Internet department bulletproof, and start thinking outside the box. The dealership model is changing in many ways, and if we rely on “doing things as we’ve always done” you can find yourself kicked to the curb. In fact, there’s nothing wrong with a salesperson asking an UP, “What do you hate most about buying a car?” At least it isn’t the same old, “Can I help you?” It gives customers a chance to vent, and gives the salesperson an opportunity to show off why your store is different, and they’ve just found someone who listens. Salespeople and Performance First, look at your sales board and who’s selling the most cars and why. Then do the same with the bottom of the board. If you have good information, either from a CRM or a paper-based system, you can tell why the top guys are leading and the bottom guys are trailing. It usually stems from a “sales process glitch.” Your top guy who talks to 50 people is usually demo-ing at least 35 of them. What are your bottom guys demoing? How many are they writing up? Raw data on the basics can convey a lot you may have skipped over. Getting a handle on the basics gives you a place to start but it’s a long way from the finish line. For example, good sales performers always can be made better with improved prospecting, tracking and accountability techniques. Poor sales performers likewise can improve with these same steps. There’s always room for improvement. Factor in

THERE’S ALMOST NOTHING WORSE THAN HAVING A HAPPY CUSTOMER GO BAD BECAUSE OF BAD PAPERWORK OR A SLOW PROCESS DURING DELIVERY. the ideas, insights and idiosyncrasies of the up-and-coming customer base and address how to best handle different buying groups – the older, more established and loyal crowd and the younger generation. Finance and Delivery Processes and Procedures There’s almost nothing worse than having a happy customer go bad because of bad paperwork or a slow process during delivery. This is what happened to me at the big box store with my wife. Frankly, I was amazed. Given this dealership’s size, the last thing I expected was hardcopy paperwork where type was illegible and agreements were poorly written. Obviously, I wasn’t alone in this situation. Most people usually don’t wait for the question about what they hate about a dealership experience. Most will tell us without asking – they hate that the process takes so long, even when they do most of the homework ahead of time online. It leaves me asking the following question: How many people will not return, or show consistent loyalty, to a dealership because their last impression was unfavorable? Today’s sale is a chance to do one of two things: Solidify a long term customer, or make them wonder why your dealership isn’t keeping up with the times. Former dealer executive SCOTT BERGERON is the founder and principal at Daily Gameplan (www.dailygameplan. com), a sales team performance company. Daily Gameplan’s “Red Book,” cloud-based CRM, and direct consulting have been used in thousands of dealerships throughout the United States. Bergeron can be reached at 303.918.3169 or scott@dailygameplan.com.

www.louisianaiada.com

Oct.19th,2017

Grand Opening Sale . 800+ units expected $10K Cash, prizes & refreshments

nov.16th,2017

dec.21st,2017

Christmas Party Sale . 600+ units expected $5K Cash, prizes & refreshments

Dealer Appreciation Sale . 650+ units expected $5K Cash, prizes & refreshments

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