DEALER
NEWS
MASSACHUSE T T S/NEW ENGL AND INDEPENDENT AUTOMOBILE DE ALERS ASSOCIATION
N O V E M B E R / D E C E M B E R 2 018
TIM HOEGLER
“THANKS FOR COMING IN!” | PAGE 08 |
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AUCTION NEWS
CENTRAL MASS AUTO AUCTION FUNDRAISER
$8,245 Raised for Boys and Girls Club
Central Mass Auto Auction wants to thank all the dealers who participated in the fundraiser for the Boys and Girls Club of Webster/Dudley. We were able to raise $8,245 for a great cause. Owner Joe Smalley and general manager Luke Summelrock appreciate everything their dealers do for the local charities. Thank you and we look forward to doing it again next year.
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November/December 2018
DEALER NEWS
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INSIDE HOLIDAY ASSOCIATION NEWS
MASSACHUSETTS/NEW ENGLAND INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION
DEALER
NEWS
08..............................................................Tim Hoegler Retires 10................................................. NIADA Government Report 12.......................................................................Email Security 14......................................................MIADA Golf Tournament 15.......................................How to Compete with Online Ads 16.........................................A Reason Many Salespeople Fail 18......................................................Good Cheap Cars: Part 2
WHAT’S NEW
National Policy Conference Online Did you miss the NIADA National Policy Conference in September? Sessions are now available online!
PARTY
December 7th SAVE THE DATE!
MIADA will hold its holiday party December 7 at 7 p.m. at Pleasant Valley Country Club in Sutton, Mass. The cost is $50 for an individual ticket or $75 per couple. It is $500 to sponsor a table. Reserve your place today! Contact Heidi Saad at heidimiada@gmail.com or (508) 499-3003.
Check it out on NIADA.TV.
ADVERTISERS INDEX
ADESA ................................................................................... 9 Alliance Inspection MGT........................................................ 5 AmTrust Financial .................................................................13 Auto Auction of New England ...........................................IBC Central Mass AA.....................................................................3 Lynnway Auto Auction........................................................6, 7 Manheim ...............................................................................11 NextGear Capital ..................................................................12 Southern Auto Auction........................................................IFC vAuto.......................................................................Back Cover
OFFICE
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 MA/New England Dealer News is published bi-monthly 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 Dealer News or NIADA. Likewise, the appearance of advertisers, or their identification as members of MIADA or NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2018 by NIADA Services, Inc.
PRESIDENT Juan Carlos Mendez JC Auto Sales
Rich Copponi AutoUse
Lou Tedeschi A.S.P.I. Motor Cars
VICE PRESIDENT Bob Baker Jr. Dorchester Motor Sales
Dan El Dourihi 1A Auto Sales
Ray Daneshmand Choice Auto Center
TREASURER Pierrot Abiramia Milford Auto Mall
Harold Proodian Wagner Motor Group
CHAIRMAN OF THE BOARD Bob Hayes Auto Town Rentals Inc. EXECUTIVE DIRECTOR Heidi Saad heidimiada@gmail.com
PAST PRESIDENTS
Steven Carnes - Worldwide Preowned LLC Tim Collins - Quincy Auto Auction Eddie Coolbrith - S & E Auto Ron Dial - Dialworks Phil Greenstein - Keystone Automotive
STATE MAGAZINE MGR./SALES
Troy Graff • troy@niada.com EDITORS
Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT
Jeffrey McQuirk • jeffrey@niada.com PRINTING
Nieman Printing
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BOARD OF DIRECTORS
SECRETARY Steve Newcomb Royal Administration
For information on how to become a member of MIADA, please contact MIADA at 781-278-0077 or heidimiada@gmail.com.
NIADA HEADQUARTERS
EXECUTIVE COMMITTEE
www.miada.com
Robert Shaw, Sr. Shaw Auto Leasing
Phil Greenstein Keystone Automotive Donald McKenna Patriot Motors Ron Dial Dialworks
Luke Semmelrock Central Mass Auto Auction John Perro Perros Auto Sales
Donald McKenna - Patriot Motors Inc. Fred Moschetto - Moschetto Brothers Inc. Louis Tedeschi - ASPI Motor Cars John Eleftherakis - John’s Auto Sales
AUCTION NEWS
LYNNWAY WELCOMES NEW DEALER REPS
Three Industry Veterans Join Team
Lynnway’s Greater Boston Auto Auction recently added three extremely talented and incredibly personable dealer representatives to their remarketing team. Their combined automotive remarketing experience is reflected not only by their passion and early start in the automotive industry but by the number of car dealers they have had the honor of serving over the years. All three – Dave Regan, Anna Fontaine, and John Raposo – have spent years working for other auto auctions building a strong rapport and business partnership with many of you, the dealers on the weekly auction floor. Dave Regan is a familiar face to many. His commitment to the success of the dealers he represents is well known. At 16 years old, Dave had the tenacity to ask his gas station boss if he could sell a few cars off the gas station lot, directly across from the Rockingham, N.H. racetrack. Dave says he sold more $50 cars than you could ever imagine! Cars don’t sell for $50 anymore, but Dave’s ability to sell cars hasn’t changed. His auction industry smarts will greatly work to your benefit. Anna Fontaine and her husband are busy raising two daughters, yet when it comes to
representing dealerships, she’s all in! Though sweet, Anna’s ferocity and tenacious work ethic, along with her commitment to making your strategic remarketing successful, is contagious. You might see pretty nail polish, but underneath those nails is automotive grease from her childhood days in her grandfather’s automotive shop. John (Johnny) Raposo, another familiar face, carries a strong Portuguese work ethic that has fueled multiple family generations currently working in remarketing sales. Yes, the accent is still there to give you that old-
world flavor. But make no mistake – Johnny is very contemporary in his ability to shape your remarketing plan. His passion for the industry started in his youth and his direct experience working for another auction for over 18 years comes highly valued. Lynnway is extremely pleased to have the caliber of these three professionals assisting dealerships throughout the New England states. They present a very positive remarketing opportunity for your dealership’s future.
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November/December 2018
DEALER NEWS
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AUCTION SPOTLIGHT
TIM HOEGLER
“Thanks for Coming in!”
For 25 years, Manheim New England general manager Tim Hoegler has greeted clients and employees with this phrase, and he meant it. In a tribute to him, “Thanks for coming in” is emblazoned on the first archway as you enter the auction. Tim is now retiring, effective September 25. Massachusetts Independent Automobile Dealers Association wishes this friend, association board member, and comrade farewell after his 37 years of dedication to the automotive industry. There are very few dealers in New England who don’t know Tim Hoegler. Every Tuesday morning he has greeted everyone with a giant smile. At 9:25 he was up on the block saying “Good Morning,” making all the important announcements and wishing each dealer a successful day. This is something you don’t see at any other auction. Tim sincerely appreciated all those who attended his sale, addressed all issues that might arise during the day, and ensured
the sale was run to his clients’ satisfaction. With Tim, problems were never left on the table, and resolutions were negotiated fairly. Even though a buyer or seller might not always be happy with the final decision, they knew Tim considered all sides of the issues and everyone had their say. Tim’s office door was never closed. It was the first thing you saw walking in and the last thing you saw leaving for the day. It was an office of excitement filled with talking shop, sports (especially the Red Sox), news of the industry or trends in the automotive industry. Tim knew – he followed it all and was factual in his recounting of events, whether last night’s game or the shifts in automotive strategy. Genuine, Tim is a “what you see is what you get” type of man. This unassuming individual molded and shaped a winning culture within Manheim New England that laid a foundation for success. His commitment to the industry was not just shown in the confines of the auction. Tim served on the MIADA board of directors for 25 years, was the original chairman of the MIADA Scholarship Foundation, and chaired the MIADA By-Law Committee. To further his commitment to the association, Manheim
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www.miada.com
New England has been a platinum sponsor for MIADA members with buy/sell discounts as well as sponsoring and participating in MIADA events and programs. In 2015 MIADA recognized Tim as the “MIADA Man of the Year.” Only a few us can still remember when Tim first started at the ice skating rink that was transformed into the Walpole Auto Auction in Walpole, Mass. This auction was purchased by Manheim, making it the 13th Manheim auction. After it was purchased, the auction was moved to the grounds of the old Taunton dog track. Tim was named auction general manager in 1994. Under Tim’s guidance and leadership, the auction continued to grow and gain market share despite 17 competitors within the New England area. Tim’s demeanor and insightfulness has influenced the upper management of the Cox Automotive family as well as the thousands of dealers who have crossed Tim’s path. In his quiet, passionate way Tim has become an industry legend. On behalf of all the members of Massachusetts Independent Automobile Dealers Association, it is time for us to say to Tim, “Thanks for coming in.” Godspeed.
WASHINGTON UPDATE | By Shaun Petersen
NIADA 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 Republican-led effort to make the tax cuts of last year’s Tax Cuts and Jobs Act permanent cleared its first hurdle Sept. 28, when the House of Representatives passed the legislation dubbed “Tax Reform 2.0” by a 220-191 vote that fell mostly along party lines. Three Democrats voted for the bill, while 10 Republicans voted against it. The bill is actually a collection of three proposals that would make the individual and small-business tax cuts, which are currently scheduled to expire after 2025, permanent and extend the lower medical deduction threshold, as well as making it easier to contribute to and withdraw from retirement accounts and allowing qualified new businesses to deduct up to $20,000 of their start-up costs. House Ways and Means Committee chairman Kevin Brady (R-Texas) said since the tax law took effect “we’ve seen an economic turnaround with more jobs, bigger paychecks and historic Main Street optimism.” Now the bill must get through the Senate, which appears to be a more difficult task. Senate Majority Leader Mitch McConnell (R-Ky.) has said the three bills will be considered separately, and none of them are expected to be acted on by the end of 2018. Because it takes 60 votes to pass tax legislation in the Senate and the Republicans hold a slim 51-49 majority, the prospect of all three bills passing seems remote, but there is some bipartisan support for some of the provisions, including the changes in retirement and education savings.
REGULATORY
CFPB updates FCRA disclosures: The Bureau of Consumer Financial Protection issued an interim final rule updating two model disclosures to reflect recent legislative changes to the Fair Credit Reporting Act. The Economic Growth, Regulatory Relief and Consumer Protection Act, passed in May, requires nationwide consumer reporting agencies to provide their customers free “national security freezes” that keep prospective lenders from obtaining access to a consumer’s credit report, which makes it harder for identity thieves to open accounts in the consumer’s name. As a result, the CFPB has changed its models of the Summary of Consumer Rights and the Summary of Consumer Identity Theft Rights – disclosures mandated by the FCRA to be sent to consumers – to include a notice regarding the newly established right to a security freeze. Consumer reporting agencies and other entities can use the bureau’s model forms or their own similar forms, but any version must include a notice of the right to a security freeze. The updated model forms can be found at www.consumerfinance.gov/about-us/ newsroom/bureau-consumer-financialprotection-issues-updated-fcra-modeldisclosures/. The new law also extends the minimum time in which nationwide consumer reporting agencies must include an initial fraud alert in a consumer’s file from 90 days to a year. Agencies say guidance is not law: Five federal agencies – the CFPB, the Federal Reserve Board, the FDIC, the National Credit Union Administration and the Office of the Comptroller – issued a joint statement to make it clear that supervisory guidance issued by the agencies does not have the same effect as law and they do not take enforcement actions based on that guidance. The statement comes after the CFPB’s controversial 2013 auto finance guidance, which was used as the basis of several enforcement actions, was determined to qualify as a rule by the General Accounting Office, which led to it being repealed this year by Congress using its power under the Congressional Review Act. The statement said the agencies will not take enforcement actions based on supervisory guidance, explaining that guidance can outline the agencies’ supervisory expectations or priorities and articulate their general views about appropriate practices for a given subject area.
PAC
The PAC Cup competition wrapped up during the recent National Policy Conference in Washington D.C., and the result was recordbreaking. A staggering $212,000 was raised for the NIADA-PAC fund as a result of the PAC Cup competition, more than double the record set in 2017. The competition pits NIADA’s four geographical regions against each other, with the Cup going to the region that contributes
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NIADA’S 2018 NIADA LEGISLATOR OF THE YEAR, REP. MIKE KELLY (R-PA.)
the most to the fund since the previous year’s NPC. As always, the competition came down to the final frantic moments, with the regional vice presidents encouraging dealers and industry partners from their regions to contribute. In the end, Region III Midwest, led by vice president Scott Allen of Texas, barely edged four-time defending champion Region II (Southeast) to win the Cup for the first time. In addition to raising money, the PAC distributed some as well, making contributions to Rep. Roger Williams (R-Texas), Rep. Mark Walker (R-N.C.), Rep. Barry Loudermilk (R-Ga.) and Rep. Mike Rogers (R-Ala.), and Massachusetts Senate candidate Geoff Diehl during the Friends of the Automotive Industry Congressional Reception and Dinner. A special contribution was made to Rep. Mike Kelly (R-Pa.), who was named NIADA’s 2018 Legislator of the Year. One of three car dealers currently serving in the House of Representatives (Williams is another), Kelly, who serves on the House Ways and Means Committee, was instrumental in getting the Tax Cuts and Jobs Act passed and pushed for the provision that allows automobile dealers to continue to deduct net interest expenses associated with their floorplan lines. He has also been a strong proponent of Tax Reform 2.0. As a fellow car dealer, no one understands the needs of NIADA’s members and the issues that affect them better than Rep. Mike Kelly. Shaun Petersen is NIADA’s senior vice president of legal and government affairs.
SECURITY WATCH |
By Tyson Lee
EMAIL SECURITY TIPS How to Keep Hackers Out
I recently received an email from a dealer we just funded on a bulk purchase asking to cancel the funds we had just sent electronically. He said he would send me his new banking instructions. Thinking this strange, I called the dealer and texted him a picture of the email I received. He said, “Tyson, I did not send this. This did not come from me.” While on the phone, I got our IT department involved. We found the hacker was deleting the messages the dealer was sending from the dealer’s email, but we could still pull them up in his archived folders. We had the dealer change his password, but the hacker was still able to send emails out. We then had the dealer unplug all Internet access, all computers and the router, and to power everything down. We had him call his Internet provider to make sure the IP address would be changed. The dealer also contacted his anti-virus provider to see what they could do. Just think what this hacker could have done if he was able to get ahold of credit card numbers or customers’ personal information! What a mess it could have been for this dealer. Here are some tips on how to keep hackers out. Use strong passwords. Strong passwords, although hard to remember, are your first step towards protecting your email and other online accounts from the bad guys. Use a combination of uppercase and
lowercase letters, numbers and special characters such as $, &, or %. Use a secure online strong password generator such as https://xkpasswd.net or https://www. passworddog.com if you need help. Don’t use the same password across all the online services you access. With the growing number of online services we access, remembering multiple passwords is getting harder. So, users tend to use the same password across all the services they use. The danger with this approach is if your password gets leaked or one of the online services you use gets hacked, all your online service accounts are vulnerable to unauthorized access. Don’t write your passwords on sticky notes. Do not write your passwords on sticky notes and keep them with your phone or leave them next to your computer. If you are having trouble keeping track of different passwords you use for your online accounts, there’s help for you in the form of password managers or password vaults that help you store you passwords in a secure manner. Check out LastPass free password manager at http://www.lastpass.com. Enable two-factor authentication (2FA). Most of the popular email providers such as Gmail, Yahoo, and Microsoft, and online services such as Facebook, Instagram, and Twitter support two-factor authentication. With 2FA, you use a second factor besides your password to access your account. This second factor, in most cases, is simply a verification code sent to your phone. Be aware of phishing. Phishing is a form of fraud in which fraudsters send you emails that look like the ones you would receive from a reputable company such as Facebook or Apple, but are meant to trick you into revealing your user ID and password so fraudsters can gain access to your email, confidential data, or other valuable information from your account. Once they gain access to your account, they will then try to send emails to people on your contact list and try to trick them into revealing their account credentials. Install anti-virus software with email scanner. Hackers send viruses, malware and spyware as email attachments. Virus and malware are software programs or code written with the intent to harm or disable your computers. Spyware is software written with the intent to steal your confidential information or let hackers control your computer remotely. One of the best ways to protect yourself from these is to install antivirus software that includes an email scanner. AVG Free is one such free software with email scanner (http://free.avg.com). Antivirus email scanners scan email and attachments and remove or block viruses, malware and spyware. Since hackers are changing their software constantly, make sure you update the antivirus software and virus definitions regularly. Tyson Lee is the marketing and sales manager for United Acceptance, Inc. He has been helping dealers across the nation for the past 12 years.
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www.miada.com
ASSOCIATION NEWS
MIADA GOLF TOURNAMENT
Benefiting Disabled & Limbless Veterans
MIADA’s 26th annual golf tournament was held at Indian Pond in Kingston, Mass., in August. Although the weather was not on our side, a great time was still had. All proceeds went directly to Disabled & Limbless Veterans, Inc., a cause we closely stand by. We maintained a great turnout and hope for an even bigger event next year!
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ONLINE MARKETING | By Adam Tobias
HOW TO COMPETE WITH ONLINE ADS
5 Steps for Small Dealers
Car buying has become a primarily online activity. According to Cox Automotive’s Car Buyer Journey Report, customers spend just a third of their time at dealerships. The rest is devoted to online research. Only after careful research do car buyers proceed to a dealership to test drive and purchase. The challenge, therefore, is to be found online. Dealerships might have the right inventory and prices, but if they can’t get traffic to their listings, they won’t get buyers onto their lot. Online advertising is the answer, but most small and mid-size dealerships can’t justify the cost. But there is a right way and a wrong way for small dealerships to advertise online. And it’s expensive if you do it the wrong way.
The Benefit of Being Big
Large dealerships dominate advertising on third-party websites like Cars.com and Autotrader. They can afford the exorbitant costs of buying ad space there and can blanket the Internet with ads. Sure, they waste a lot of money on visitors who don’t buy from them, but with enough traffic, only a tiny fraction of visitors need to become customers to make the ads worthwhile. That’s the benefit of being big. When small dealerships try the same “spray and pray” approach, they undoubtedly fail. If you can’t compete on budget, you have to use other tactics to get found online.
When They Go Big, You Go Small
Small dealers can’t afford to blanket the Internet with ads, but anyone can afford to run a few highly targeted ads to the perfect customer. If you have $100, you can effectively advertise any vehicle online. Here are five steps to developing a highvalue advertising campaign. These principles are universal for any dealership, but they’re especially powerful for smaller dealerships trying to compete with large companies.
1. What is your niche? Who is your audience?
Most dealerships already focus on specific vehicles. That’s called a niche. Maybe your niche is broader, like trucks, European cars or used vehicles. Maybe it’s narrower: a specific brand, price point or customer segment. Having a niche is important. It allows you to define your target audience, the people who are most likely to purchase a vehicle from you. Instead of advertising to any car buyer, focus on advertising to this niche. But how do we find these people on the Internet? And how do we show them our ads?
2. Ad targeting.
Ad targeting means creating rules or criteria about who should see your ad, when they should see it and on what platform. Using the tools available on ad platforms, you can target your specific niche. Targeting saves you money by showing your ads only to those people who are most likely to purchase from you. Your conversion rates will be higher, which means more people are clicking on your ads. This, in turn, gives you a better chance to make a sale. For small and mid-size dealers, the secret to online advertising is quality not quantity. You want each ad to make a big impact, and that starts with ad targeting.
3. Choose the right platform.
Advertising platforms vary widely on cost, features and targeting ability. Choosing the right one is often the most difficult step. • Third-Party Car Websites Third-party websites – like Cars.com, Autotrader and CarGurus – are the most popular platform for dealer ads. They get the lion’s share of car search traffic and are often the first place buyers look. But because of this, they are also the most expensive platforms. Only large dealerships can afford to advertise effectively on these sites. Every ad is in competition with thousands of other car ads, putting a premium on top ad space. • Google Ads Google Ads (formerly AdWords) lets you run ads on Google searches. Advertisers target the keywords relevant to their product and their ads are shown on the results pages. Google Ads can be affordable or extremely expensive. Broad terms like “used cars” get hundreds of thousands of searches every month, but the cost is prohibitive for most small dealers. Plus, this keyword attracts a wide audience, most of whom won’t be interested in your vehicle anyway. Specific terms like “Honda HR-V 2016 Atlanta” are less expensive and more effective for a small dealer. This type of Google search shows buyer intent – they have done their research and are looking to purchase. This is the perfect time to show them your ad and get them to your website. • Social Media Like Google Ads, advertising on social media can either be cost-effective or expensive. Instead of keywords, though, sites like Facebook group audiences based on their interests. You can choose a broad or niche audience, which will determine the cost and impact of your ads. • Display Network Display networks partner with websites
and online publishers to deliver banner ads to visitors based on their search history and interests. When you target a specific audience, the display network will show them ads when they visit a website that is part of the network. For example, your audience could see your ad on USA Today, DrivingSales.com and Lifehacker. com. Display network ads are among the most affordable and effective. The ad space itself is inexpensive, and your ads don’t have to compete with hundreds of others. Since they are based on search history and interests, you know you’re targeting a high-quality audience.
4. Ad content.
The content of your ad has a monumental impact on its success. The right targeting is only half the battle. We’ve grown so used to seeing ads everywhere our minds have become very effective at ignoring them. To win visitors, your ads need to be creative and provoke people to action. If you’re not using the right language, or your ad is not visually appealing, chances are visitors will not click on your ad. Creating compelling ads is tough work. If you don’t have experience, you are probably better off seeking the help of a marketing professional. But even pros aren’t perfect, which leads us to our final step.
5. A/B testing.
A/B testing is a method to gauge the performance of an ad before you spend too much money on it. Create two different versions of the same ad and run a limited campaign for each while measuring their effectiveness. Then choose the top-performing ad to run a larger campaign. Repeat this process over time to refine your ads. A/B testing helps advertisers ensure they are running effective ads that generate highquality leads and, eventually, sales. It’s truly an invaluable tool. It’s hard and scary, but you’re not alone. Online advertising can be a full-time job on its own. It’s only natural to feel overwhelmed by the amount of work and choices involved. Large dealerships make it hard to get the premium ad space on a small budget. And if you’re not in the premium ad spot, it’s easy to get lost in all the noise. However, by targeting your niche audience with engaging ads on the right platform, even small dealers can compete with the big players. Take your time, get it right and watch your sales soar.
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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.
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SALES MATTERS | By John Chapin
A REASON MANY SALESPEOPLE FAIL
How to Avoid It
In a recent article, John Brubaker of CoachBru.com said, “According to a U.S. Department of Commerce research study, in the first five years of a business the survival rate for independent small businesses is less than 20 percent but the survival rate for franchises is 95 percent.” “It isn’t so much the name recognition,” said Brubaker. “It’s the fact that with a franchise you get to utilize a turn-key set of business operations [a successful system that works] as opposed to having to invent the wheel in your own business. “Starbucks [has] an excellent system, which is why they have a thriving business. From the point of purchase displays, merchandising, upsells, menu options and language to the tiered pricing, customer service, and order production/fulfillment methods, they have a calculated, streamlined process for every single touchpoint.” During a discussion with me, he said his own research found salespeople and entrepreneurs that follow a sales system are 10 times as likely to be successful as those who don’t. The reason this is true may not be what you expect. It’s also not the same exact reason for franchise success, though it’s similar. The primary reason why salespeople following a system are 10 times as successful as those who don’t is that they care enough to have a system to begin with. Let me explain. The first step to success in sales is an iron-clad commitment that you’re going to be successful. Anyone committed to a goal lays out a plan and follows a system to achieve that end. The person who just “kind of” wants to lose weight, thinks it “might be nice” to play the harmonica, or is in sales because it “pays the bills and gets me to the weekend” isn’t putting in extra time to plan out how they’re going
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to actually make it happen. This is similar to the person who spends more time planning a vacation than their retirement. They simply aren’t serious about the latter. The good news is a sales system doesn’t have to be a painstakingly detailed, step-by-step system like those required to run a franchise such as Subway or Starbucks. All that’s required is that it leads to enough of the right activities resulting in enough contacts with enough qualified prospects to make enough sales to hit weekly, monthly, and annual sales goals. INGREDIENTS FOR A SUCCESSFUL SALES SYSTEM A Plan Your plan is the easy part of this process. It simply consists of your goals, your activity, and your plan to get the activity done. The first thing you need to determine is your annual sales goal. Once you have your annual goal, break that down to monthly and weekly goals. Next, calculate your daily activity. To do that, begin by dividing your annual goal by the size of your average sale. That will give you the number of sales you have to make for the year. Now, based upon your closing ratio, figure out how many proposals you need to present. Calculate the number of prospects you need to get that number of proposals. How many calls does it take to get that number of prospects? Once you have the total number of sales, proposals, prospects, and calls, break those down to monthly, weekly, and daily numbers for each. Your last step is to plan your days and weeks based upon the number of calls you need to make while getting your other activities done. Whatever your numbers are, with 168 hours in a week, you should have more than enough time. An example of the business portion of a day might look like the following: • 7-8 a.m.: Paperwork and prep for the day. • 8-10 a.m.: Prospecting phone calls. • 10 a.m. - 12 p.m.: In-person prospecting. • 12-1 p.m.: Lunch. • 1-3 p.m.: Appointments. • 3-5 p.m.: Prospecting phone calls. • 5 p.m.: Paperwork.
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The Tools Your tools will consist of a playbook, a binder with all scripts, a Concept Book, and a way to track and follow up with clients and prospects. Your playbook will include company policies and procedures, how you start your day, how you find, contact, and follow up with prospects, how to build long term relationships, and how you end your day. It’s something you can hand to a brand new person, who can be up and running once they have a general understanding of it. Scripts in your binder include all prospecting calls, presentations, answers to objections, and all other items you need to convey to prospects and clients. Your Concept Book will contain all your “evidence,” such as testimonials, user lists, reference letters, endorsements, articles, guarantees, examples of where your product or service was applied with successful results, and all documentation that supports any claims you make during your calls. Finally you need CRM (client relationship management) and PRM (prospect relationship management) systems in place. These don’t have to be super-complicated or even computerized – they just have to be effective. I have one sales rep who uses a yearly planner, 3x5 index cards, and an Excel spreadsheet. The key is you have a system and it’s effective. Follow the Plan and Make Adjustments Once you have your plan, get into action as soon as possible. Notice what is and isn’t working and make adjustments. Remember, imperfect action is better than no action. The biggest problem I see with putting a system together is that some people become perfectionists and as a result are never ready to take action. Take action every day, even while you are putting your system together. Do not stop everything you’re doing and decide you’re going to wait until you have the perfect plan in place. Do sales activities every day whether a plan is in place or not. If you’re looking for an additional resource to help you put together a system, one of John’s tools is Business Growth Vault at CoachBru.com. 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.
INDUSTRY NEWS
MARKET WATCH
GWC WARRANTY WELCOMES ACCOUNT MANAGER TO MASSACHUSETTS
LUXURY SUV MARKET BOOMS
Norman Tripp
GWC Warranty, provider of used vehicle service contracts sold through automotive dealers, is proud to announce the arrival of a new account manager in Massachusetts – Norman Tripp. As an account manager, Tripp will work with GWC Warranty dealer partners throughout the Boston metropolitan area to help them sell more cars with GWC’s best-in-class service, products, training and technology. Tripp, an Iowa State University graduate, joins GWC Warranty with six years of technology sales experience, including several years in the automotive industry. Tripp’s track record of outstanding customer service is a natural fit for GWC Warranty, where every employee is dedicated to providing best-in-class service to dealers and end customers that helps avoid postsale dissatisfaction and protects dealers’ reputations.
Edmunds Study Results
As part of APCO Holdings, LLC, GWC Warranty has helped protect more than 8.5 million drivers from costly, unexpected out-of-pocket repair bills by paying more than $3.5 billion in claims to date. This longstanding record of excellence has earned GWC an A+ rating from the Better Business Bureau and designation as a Motor Trend® Recommended Best Buy for Independent Dealers. In addition to these honors, in 2017, GWC Warranty was once again named the 2017 Auto Remarketing Power 300. In 2018, GWC was recognized in SubPrime Auto Finance News’ SubPrime 175 for the fourth straight year. For more information, visit www. GWCwarranty.com.
The luxury vehicle market is on track for a near-record year, according to a new report released by the car-shopping experts at Edmunds. Edmunds data revealed 1.3 million new luxury vehicles were sold through August, accounting for 11.4 percent of the market. Edmunds analysts noted an expanding lineup of SUVs is driving this massive growth, with sales of luxury SUVs hitting an all-time high of 62 percent of luxury vehicle sales so far this year. “The luxury auto market is strong but at a crossroads, especially with the uncertainty around tariffs,” said an Edmunds analyst. “As luxury brands push into vehicle segments dominated by ever more premium offerings from mainstream brands, they’re going to have to work harder to convince shoppers the brand cachet is worth paying extra for.”
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November/December 2018
DEALER NEWS
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n the first installment of this threepart series, we looked at how to take advantage of upstream online auctions. Upstream is just a fancy way of saying “before the vehicle is shipped to physical auction.” We focused on OLOCs (One-owner, Low-mileage, Offlease Cars) and discussed how you can acquire affordable cars your customers want, without having to go to a physical auction. I received a lot of great feedback and even helped some dealers buy a few cars online for the very first time! Turns out, it’s not as hard as they thought! A lot of folks told me the cars they need – the $2,000 to $7,000 cars – are only at the physical auctions. So, in this article we are going to focus on buying cars from the physical auction. I’ve shared before that if you go to a physical auction there will be only a limited number of cars that might work for your lot and you will only be able to bid on a few. This means you probably won’t get the cars you need at the price you want – or at least not all the cars you need. So, why are we talking about going to the auction again? Well, I didn’t say we were going to go to the physical auction. I said we were going to buy cars from a physical auction. Some of the most successful used car dealers (and new car dealers as well) have mastered buying cars from multiple live online auctions. Remember, one auction will have a limited number of cars, but five auctions will have five times as many. How can you be at five live auctions at the same time? It’s made possible with the power of the Internet, of course. Thanks to advances in technology, nearly all auctions have a live video broadcast allowing dealers to bid and buy from the comfort of their office. You can watch and hear the sale, and then bid and buy right from your phone! Yes, multiple auctions, multiple cities and multiple states all from your computer or phone.
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DEALER NEWS
November/December 2018
The live online auction I’m most familiar with, of course, is LiveBlock from ADESA. You can preview cars that meet all the criteria you want and gather all the information you need to make an informed buying decision: vehicle history reports, build data, Autoniq data, Market Guide, book values and more, all at your fingertips. Then, you can bid on the cars live as they run across the block at auctions around the country. In fact, you can watch and bid four lanes at once! Yes, it will take some practice and, yes, it may be a little confusing at first – but like anything else it becomes much easier after a very short time. Do you remember your first trip to the auction? That wasn’t easy, was it? Over the course of my career, I’ve seen many independent dealers become successful at buying cars this way. They have multiple screens set up to watch, bid and buy at eight or more auctions at a time. I have seen big franchise groups with “war rooms” that have three or four employees in a room, each with multiple screens buying cars. The point is, you can do it! I know, you tried it once and it didn’t work out. You couldn’t buy the cars you wanted or the car you bought turned out to be a problem. Maybe that was a long time ago, or it just made you so frustrated you gave up and
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never tried again. Whatever the case, you should reconsider online auctions as a great way to acquire the cars you need. Don’t make this like asking for directions when you’re lost – if you don’t know how, ask for help! Any auction company will be more than happy to make sure you are fully trained and set up to succeed. Seriously, email me and I will connect you to people who will take the time to show you how to buy and sell online! If you’re still worried about making a mistake or getting a bad car – don’t be. There are now products out there like ADESA Assurance that can help reduce the worry – and the risk – of buying cars. If you underestimated the recon costs after buying or had a customer change their mind about buying a car, just send it back. Yes, you read that right: send it back within the defined timeframe and get your money back. There are, of course, some eligibility requirements and conditions but, boy, how times have changed. I want to close with one final tip regarding live online acquisitions: proxy bids. That’s right, proxy bids, also known as AutoBid. This is the most under-used tool in the toolbox. After reviewing the condition reports and data on the cars you need for your lot and determining exactly what you are willing to pay, simply set that number as your AutoBid. You’ll receive notifications if you win the car and what your winning bid was (which won’t exceed your AutoBid) or if you were outbid. You don’t have to watch the sale if you don’t have time – AutoBid will do the work for you. It’s really that easy! Next time I’ll uncover how to take advantage of the latest technology to buy fresh trades directly from the franchise dealer’s lot within minutes of the deal being closed. Until next time, have fun and sell cars! Doug Hadden is executive director of dealer consulting services for ADESA Auctions Inc.