OHIO INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION
DEALER
NEWS
INDEPENDENT
NIADA HONORS STEVE FRIEDMAN as Ohio SQD - PAGE 8 PassTime founder and CEO Jake Frank (left) presents Ohio’s Steve Friedman with State Quality Dealer of the Year.
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WWW.OHIADA.ORG SEPTEMBER/OCTOBER 2019 INDEPENDENT DEALER NEWS 1
ASSOCIATION NEWS |
By Wendy Rinehart
DIRECTOR’S MESSAGE
SA L E S & U S E TA X F O R N O N - R E S I D E N T S There are seven states for which an Ohio dealer must collect sales and use tax when they sell a vehicle to a customer who lives there: Arizona, California, Florida, Indiana, Massachusetts, Michigan, and South Carolina. You can find all the information at www.tax. ohio.gov, but here’s an update to make it easier for you.
HOW IS THE SALES TAX CALCULATED? The amount of sales tax to collect on sales of motor vehicles to non-residents who will remove the vehicle purchased to any of the above seven states to be titled, registered or used is the lesser of the following: • Sales tax due to Ohio. • Amount of sales tax the nonresident would pay in the state of titling, registration or use. A trade-in allowance reduces the price of a new or used vehicle to nonresident purchasers if allowed by the state to which the vehicle will be removed. Rebates or other cash back offers paid by someone other than a dealer do not reduce the tax base, except in South Carolina. Here’s how to determine the tax due from non-residents who will remove the motor vehicle to one of the seven listed states: 1. Calculate the Ohio price of the vehicle under Ohio law (i.e. as you would for a sale to an Ohio resident, taking into account the trade-in deduction if a new vehicle is purchased). The sales tax rate to apply to the Ohio price is 6.0 percent. 2. Calculate the price in the applicable state taking into account the adjustments in the included chart, such as a trade-in allowance, if permitted by the state, and apply the sales tax rate of the appropriate state listed in the chart. Please note the sales tax rates listed may be subject to change. 3. The lesser of the two amounts must be collected as the sales tax due from the customer.
The following is the list of the states, applicable tax rate, and the adjustments required to determine the proper amount of sales tax to collect:
STATE
SALES TAX RATE
TRADE-IN ALLOWANCE
ARIZONA
5.60%
YES–New and Used
CALIFORNIA
7.5%
NO
FLORIDA
6.00%
YES–New and Used
INDIANA
7.00%
YES–New and Used
MASSACHUSETTS
6.25%
YES–New and Used
MICHIGAN
6.00%
YES–New and Used
SOUTH CAROLINA
5.00%
YES–New and Used
However, in January of 2016, the trade-in allowance became available to out-of-state dealers. The provision also had a retroactive application. • South Carolina raised the general sales tax rate to 6 percent, effective June 1, 2007. However, the onepercent increase does not apply to maximum tax purchases such as motor vehicles. S.C. Code § 12-361130.
SPECIAL PROVISIONS
Nonresident exemption for RVs and trailers with a load capacity of at least 2200 pounds
Initially, in 2013, up to $2,000 of the value of the motor vehicle being traded in could be used to reduce the price. That trade-in amount increases annually by $500 beginning on January 1, 2015. However, beginning on January 1, 2019, the trade-in amount is $5,000. Additionally, beginning on January 1, 2020, that trade-in amount increases from $500 annually to $1,000 annually until the amount of $14,000 is exceeded in 2029. Beginning in 2029, there is no limitation on the trade-in that would reduce the price.
• Effective July 1, 2017, sales to non-residents who remove the vehicle to South Carolina for titling, registration or use, will remit no more than $500, the maximum sales tax due on the purchase of a motor vehicle in that state. • Available on the Department of Taxation’s (“ODT”) website at https:// www.tax.ohio.gov/forms/fill-in/sales_ and_use/exemption_certification/ST_ STEC_NR_FI.pdf
WWW.OHIADA.ORG SEPTEMBER/OCTOBER 2019 INDEPENDENT DEALER NEWS 3
ASSOCIATION NEWS
PREFERRED PARTNERS SEPTEMBER/OCTOBER INSIDE
2019
03........................................... Director’s Message 06............................ NIADA Compliance Program 08........................ NIADA Honors Steve Friedman 10.....................................................Tell it Like it is 12.............................. Golf Tournament Highlights 14.............................. Customer-Friendly Website
ADVERTISERS INDEX
AutoZone............................................................10 Columbus Fair AA ...........................................IFC Corry Auto Dealers Exchange.......................... BC Manheim ............................................................. 11 Micro 21................................................................4 NextGear Capital ............................................ 8-9 Value Auto Auction ......................................... IBC vAuto ................................................................... 5
WHAT’S NEW
N AT I O N A L P O L I C Y CONFERENCE Join NIADA for the 2019 National Policy Conference and Day on Capitol Hill September 23-25 in Washington, DC. Meet members of Congress and hear about the latest legislative and regulatory issues impacting the industry. Make your voice heard. Learn more at www. niadapolicyconference.com.
700Credit ACV Auctions ADESA Cincinnati / Dayton, Inc. ADESA Cleveland Auto Auction ADESA Mercer AFC-Automotive Finance Corp. - Columbus AFC-Automotive Finance Corp. - Franklin AFC-Automotive Finance Corp. - Ohio AFC-Automotive Finance Corp. - Perrysburg AFC-Automotive Finance Corp. - Cleveland AFC-Automotive Finance Corp. - Corporate American Guardian Group of Companies AutoZone Autotrader CARFAX Car-Ware
Comsoft Columbus Fair Auto Auction Electronic Merchant Systems Frazer Computing, Inc. Integrity Warranty LLC Manheim Cincinnati Auto Auction Manheim Ohio Auto Auction NextGear Capital PASSTIME Phoenix Financial Solutions Inc. ProCredit Express / ProMax ProGuard Warranty Inc. Protective Asset Protection Stolly Insurance Group The Milby Group Insurance Agency, Inc. UIS Insurance & Investments
BOARD OF DIRECTORS Executive Director
President
Board Members
Past Chairman
Treasurer
Jay North Jay North, Llc 937-325-3748
Wendy Rinehart OIADA 614-863-5800
Mark Meadows Miracle Motor Mart 614-337-0037
Chairman
David Adkins Wilmington Auto Sales, Inc. 937-382-7714
OFFICE
For more information, contact OIADA at (614) 863-5800 or www.ohiada.org
NIADA HEADQUARTERS
NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838
For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. Independent Dealer News 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 Ohio Independent Automobile Dealers Association or NIADA. Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2019 by NIADA Services, Inc.
STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITORS Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT Jeffrey McQuirk • jeffrey@niada.com PRINTING Nieman Printing
4 INDEPENDENT DEALER NEWS SEPTEMBER/OCTOBER 2019 WWW.OHIADA.ORG
Scott Welch Lock 20 Auto, Ltd 740-498-8811 Craig Leitwein Gahanna Auto Sales 614-475-7148
Secretary
Scott Shook Shook Auto Inc. 330-339-5711
Alex Levitskiy Auto Boutique 614-369-1333
Lev Shafer Shafer Auto Group Columbus, OH 614-654-2525 Lisa Dugger Madison Motors London, OH 740-490-0028
Randy Shirk Randy Shirk’s Northpointe Auto 419-729-2688 Robert Fahey Fairdale Auto Sales 740-432-4185 Thomas Onesti Car Port 330-726-6633 Thomas Smith Smitty’s Auto Sales 937-981-4317
LEGAL MUSINGS |
By Shaun Petersen and Adam Crowell
INTRODUCING THE NIADA COMPLIANCE MANAGEMENT SYSTEM POWERED BY COMPLYNET
For years, government regulators have demanded that dealers maintain a strong compliance management system to comply with the numerous and ever-changing laws and regulations that apply to dealerships. Those regulators have not been shy about taking enforcement action against dealers who don’t comply. Agencies such as the Consumer Financial Protection Bureau have said businesses under their authority must establish a “culture of compliance” that includes frequent selfpolicing and effectively remediating issues promptly. They have dropped heavy hammers on businesses when those criteria have not been met. In addition, the Occupational Safety and Health Administration has criminally prosecuted business owners and managers in the automotive industry when the failure to adhere to the appropriate standards have resulted in injuries. Other agencies, including the Federal Trade Commission, have recently taken enforcement action against automotive businesses for “lax” practices that result in the risk of economic injuries to others. To assist dealerships in establishing, maintaining and documenting a culture of compliance, NIADA has partnered with ComplyNet, an auto industry leader in environmental health and safety, sales and finance, and information security compliance management solutions, to offer an all-in-one workforce compliance management system (CMS) for tracking all compliance efforts – onsite and online. The NIADA CMS has the capability of tracking: • Online compliance training. • Review and acknowledgement of policies, procedures and guides by employees. • On-site inspection and audit results. • Resolution of discovered compliance issues. • Handling consumer complaints. Subscribing dealership managers and supervisors have the ability to easily determine how well their teams are meeting their compliance objectives directly from the NIADA CMS, through intuitive data visualization tools that dynamically and interactively enable managers and supervisors to better manage those compliance efforts. To minimize the most common risks to a dealership, the NIADA CMS primarily focuses on sales and F&I compliance, environmental health and safety compliance
and information security awareness compliance. Employees are educated on applicable subject matter based on their job roles through policies and guides that must be reviewed and acknowledged by the employee, as well as through online training that tests employees and recurs periodically to breed familiarity with the subject matter. Topics covered include: • Adverse action. • IRS 8300 tracking and reporting. • OFAC. • Risk-based pricing. • Red Flags Rule. • Safeguards Rule. • Disposal Rule. • Unfair and deceptive acts and practices (UDAP). • Used Car Rule. • Repossessions. • Hazard communication. • General safety. • Lift safety. • Bloodborne pathogens. • DOT hazmat for hazwaste and disposal. • General cyber awareness. • Email phishing. • Payment card industry standards. A major benefit of the NIADA CMS is it removes the hassle from documenting a culture of compliance through its well organized and thought-out systems, which automatically alert employees about the need to take training, complete tasks and resolve issues. There are other benefits, too. Insurance carriers would rather do business with a dealership that is serious about mitigating its risks and can document all of the various ways the dealership is a better risk than the next one. Sometimes those insurance carriers will compete for that business by offering better premiums. That pleasant consequence is sometimes unintended, but it should be an intended strategy in operating your dealership since less expense equals greater profit. The information captured in the CMS can be leveraged by a knowledgeable insurance agent to tell that great story. NIADA and ComplyNet have collaborated to offer affordable monthly subscription plans to the CMS that will accommodate small and large dealerships alike. For more information about the NIADA CMS and plans, visit www.niada.com and
6 INDEPENDENT DEALER NEWS SEPTEMBER/OCTOBER 2019 WWW.OHIADA.ORG
click on the “Compliance” tab. Additional on-site inspection, audit and training services can be provided to NIADA members by ComplyNet. For information about those additional services, visit www. complynet.com or call 1-800-653-1869. By Shaun Petersen and Adam Crowell Shaun Peterson is NIADA’s senior vice president of legal and government affairs. Adam Crowell is president and general counsel of ComplyNet, which has combined on-site auditing services with intuitive software to assist dealerships in achieving regulatory compliance goals, mitigating risks and retaining talent since it was founded in 1994. He can be reached at adam.crowell@ complynet.com.
WWW.OHIADA.ORG SEPTEMBER/OCTOBER 2019 INDEPENDENT DEALER NEWS 7
COVER STORY
ASSOCIATION NEWS
NIADA HONORS STEVE FRIEDMAN
OHIO STATE QUALITY DEALER
On June 20, Steve Friedman of Friedman Used Cars was awarded the 2019 State Quality Dealer Degree of Excellence by NIADA. Steve represented the state of Ohio in Las Vegas at the annual NIADA convention as the 2019 Ohio Quality Dealer. Mr. Friedman has been a successful dealer and valued member of the community for many years. It’s been an honor having Steve as our representative and we’d like to wish him and his family continued happiness and success in the future.
THANK
ASSOCIATION NEWS
YOU
NEW AND RENEWING MEMBERS I 75 Pierson Automotive, Inc. 700Credit AA Auto LLC ABC MotorCredit Advantage Car & Credit AK Imports Auto Sales, LLC Akron Motorcars All Right Auto Sales Allen East Auto Sales American Guardian Group of Companies Powell Performance Autos Auto-Link LLC Barberton Auto Group LLC Bartram Auto Sales Billing’s Sales & Service Inc. Boo Bear Auto, LLC Bottom Dollar Car Sales Bowman Automotive Inc. Browning Auto Sales Instant Auto Sales Buyer’s Choice Auto Sales CAM Motor Group LLC Carman’s Used Cars and Trucks Carvana, LLC Cash for Cars LLC Columbus Auto Mall Columbus Auto Resale Inc. Columbus Automotive LLC Comsoft Country Auto Sales Greenville, LLC
Creekside Auto Sales LLC CTMS LLC Decker Auto LLC Destiny’s Auto Sales Diamond Warranty Corporation Discover Auto Center El Camino Auto Sales Electric Destinations LLC Enon Auto Sales LLC Exclusive Auto Group Express Auto Sales III Inc. Fairdale Auto Sales Company 614 Velocity Motors Favazzo Motors LLC Five Aces Towing & Recovery LLC Frazer Computing, Inc. Frontier Motors Fusion Auto Group LLC Gateway Pre-owned LLC Genuine Motorcar and Power Sports God-Wins Logistics, LLC Good Wheels Greater Cleveland Auto Auction Green Auto Motors LLC Groff Auto Group LLC Guaranteed Auto HG Holding Inc. dba Afford-A-Car, Inc. Hicksville Auto Recyclers Hollingshead Motor Sales Hupp Auto Center, LLC Inmon Motor Sales
International Auto Outlet J7 Auto LLC JayTwo, Inc. Jeff’s Motorcars, Inc. JJS3, LLC John’s Auto Group Kellie Auto Sales Inc. Key Truck Sales, Inc. Lucky Auto Inc. M & M FINE CARS McLoughlin Auto Sales Inc Mercy Motors LLC Michael J Auto Mid America Auto Group LLC Mid-Towne Auto Center Miller Auto Company LLC Mission Auto Sales LLC Nexstar Broadcasting, Inc. - WKBN TV NextGear Capital North Main Motors, Inc. Northcoast Financial NVP Warranty Oak Auto Sales LLC Ohio Steel Recycling LLC Ozzys Cash & Go Auto LLC Pat & Mike’s Auto Sales LLC Phoenix Financial Solutions Inc. Preferred Automotive Sales Inc. Pristine Auto Detail and Sales ProCredit Express / ProMax Professional Financial Services
Reece Auto Sales REM Motors LLC Reser Motorsales Ride In Style Auto LLC RRC Cars LLC dba Quality Motor Cars RT44 Auto Sales Salute Motor Sales LLC Sarchione Auto Sales Ltd dba Sales & Service SBC Motors, LLC Singer Auto Sales Inc. Smitley Inc. (DBA Busks Auto Sales) Smitty’s Auto Sales Speedie Auto Star City Auto Group LLC Starr’s Cars & Trucks Inc. Sterling Credit Corporation The Auto Stop The Gertsburg Law Firm Co., LPA The Milby Group Insurance Agency, Inc. Tiffin Auto Mart Inc. Tip Top Auto Sales TKP Auto Sales Tom Cater Auto Sales Transportation Outlet Inc. Trusted Motors LLC Twin Motors Inc. Union Motorcars Inc. VanCo LLC Wyandot Motor Sales You Drive Auto LLC
LEGAL MATTERS | By Mark Turner and Cindy Menta
TELL IT LIKE IT IS
YOUR
OBLIGATION
In Ohio, auto dealers are not permitted to use unfair, deceptive or unconscionable practices in connection with the sale of an automobile. As part of this obligation, dealers are required to affirmatively disclose prior vehicle damage and/or repairs to customers during the sales process. Such necessary disclosures include, but are not limited to the following: •P rior to obtaining a signature from the customer on any document related to the purchase of the vehicle, the dealer must disclose any defect and/or the extent of any previous damage to the vehicle, particularly if the retail repair cost exceeds or exceeded six percent of the manufacturer’s suggested retail price. This excludes damage to glass, tires and bumpers that were replaced by identical manufacturer’s original equipment. Notably, the above disclosure is required only when the dealer has actual knowledge of the defect and/or damage and the vehicle is a new motor vehicle. OAC 109:4-3-16(B)(14). •P rior to the sale of a vehicle, the dealer must disclose any known previous frame/ structural damage to the vehicle to the customer. •P rior to obtaining a signature from the
TO
DISCLOSE
PRIOR
customer on any document related to the purchase of the vehicle, the dealer must disclose that such vehicle was previously titled as a salvage vehicle if the dealer has actual knowledge of such fact. OAC 109:43-16(B)(29). Failure to disclose a “salvage title” is an Ohio Consumer Sales Practices Act (“CSPA”) violation and the customer may later demand recession of sales contract and return of the purchase price. R.C. 4505.181(B)(2). •A ny other obvious defects in a vehicle must be disclosed at the time of sale. See, e.g., Muench v. Eagle Savings Assn. & Hassan Motors, Inc. C.P. Hamilton, Case No. A 850744 (March 30, 1987). •T he dealer must also immediately notify the consumer of any additional or substituted equipment, features and/or service that has come to the dealer’s attention at the time of or after the sale, and afford the consumer an opportunity to rescind the purchase agreement. OAC 109:4-3-16(B)(28). The above disclosures are required whether or not the damage occurred before the dealer came into possession of the vehicle. Though there is no requirement that the dealer make these disclosures in writing, it is a best practice to do so, and then have the customer sign off
10 INDEPENDENT DEALER NEWS SEPTEMBER/OCTOBER 2019 WWW.OHIADA.ORG
VEHICLE
DAMAGE
on them. The signed, written disclosures may be essential in the event a customer calls the disclosures into question at a later date. Note, however, certain exceptions apply to these general disclosure rules. The most significant of these exceptions is if the primary purpose of the vehicle was not personal use (i.e., for business purposes), then neither the Ohio Advertisement and Sale of Motor Vehicles Rules (“OAC”) nor the CSPA apply. Even though there are exclusions, the scope of the disclosure rules is still quite extensive. To ensure all necessary disclosures are being made, it is recommended the dealer speak with an attorney with experience in consumer law. The dealership should then ensure making necessary disclosures becomes part of its regular business practice, if it is not already. Otherwise, the dealer may find himself faced with complaints with the Ohio attorney general or a lawsuit for deceptive sales practices, which is something all dealerships certainly want to avoid.
This article is meant to be utilized as a general guideline for dealer disclosures to consumers. Nothing in it is intended to create an attorney-client relationship or to provide legal advice on which you should rely without talking to your own retained attorney first. If you have questions about your particular legal situation, you should contact a legal professional. Mark Turner and Cindy Menta are attorneys at Gertsburg Law Firm Co., LPA. They can be reached at mt@ gertsburglaw.com or 440-571-7773.
ASSOCIATION NEWS
2019 OIADA GOLF OUTING
SUCCESSFUL
DESPITE
HEAT
The OIADA golf outing was held on the hottest day in July! With excessive heat warnings and the heat index hitting over 105 degrees, the golfers showed up to the York Golf Club for a day of fun, food, and golf. The heat didn’t stop these players! Steve Wycoff hit a hole in one (his first ever) on the third hole. Marc Carman won the putting contest. Taking first place was the team from Akron Auto Auction: Mike Waseity, Joe D’Augustine, Tom O’Nesti, and Bob Eddy. Congratulations to all the day’s winners! We would like to send a huge “thank you” to all the sponsors that made this day possible. Without the continued support of these great companies, our association would not be able to provide the service and support we do to our dealers and the industry.
12 INDEPENDENT DEALER NEWS SEPTEMBER/OCTOBER 2019 WWW.OHIADA.ORG
WWW.OHIADA.ORG SEPTEMBER/OCTOBER 2019 INDEPENDENT DEALER NEWS 13
ONLINE MARKETING |
By Kathi Kruse
6 SIMPLE FIXES
Making Your Website More Customer Friendly One of the highest priorities for dealers in 2019 is to make their website more customer friendly. However, even though most dealers agree it’s a priority, the resulting website often doesn’t live up to what they envisioned. I recently spent a few days doing a website audit for a local dealer. I was investigating their competitors and found a lot of sites that desperately needed updating – many were not even mobile-friendly. Bad website design, outdated aesthetics, and poor usability are all credibility killers. The Internet does not hand out second chances. No matter what you want people to do once they click to your site – buy, sign up, inquire about service, etc. – it’s all about conversions. Your website’s main role is to compel visitors to take action. Your dealership website must include a strategy to convert visitors. There’s a simple dealership website secret many seem to miss: If you make your website more customer friendly, your conversions will improve. But where do you begin? It’s best to focus on the simple fixes first. 6 SIMPLE FIXES Here are areas that can be modified to improve user experience, engage visitors longer, and answer their questions – thereby setting your site up to convert more customers. Clearly State What You Do Studies show you have less than 10 seconds to convince visitors to stay on your site. If they don’t feel their needs are addressed, they will click away – often to a competitor. To gain several minutes of user attention, you must clearly communicate your Unique Value Proposition within 10 seconds. Also known as a unique selling proposition (USP), your UVP is a clear statement that describes the benefit of buying from you, how you solve your customer’s needs and what distinguishes you from the competition. Your unique value proposition should appear prominently “above the fold” in your hero image section at the top of your homepage. Easy to Find Contact Info Many websites still don’t give visitors an easy channel for getting in touch with the dealer. Some websites don’t even have an email address or contact form. Make your website more customer friendly with these simple fixes: • Make sure you have a “Contact Us” page. •P ut a link to your contact page in a conspicuous place in your header menu. •C reate “click-to-call” and “click-to-email” links so mobile users can easily reach you. Simplify Choices Hick’s Law is a popular theory. It states,
“The time it takes for an individual to make a decision is proportionate to the possible choices he or she has.” In other words, by increasing the number of choices, the decision time is also increased. You might be tempted to copy Amazon in their presentation of seemingly unlimited choices, but do everything you can to fight that urge. The reality is too much choice is overwhelming and often leads to customer inaction. Wading through a lot of information involves the conscious brain, and results in decision avoidance. The brain dislikes figuring out how one choice is different from the others. Simplify choices so they are easily distinguishable from one another. When presenting choices, keep in mind the brain is lazy and unwilling to wrestle with things. Make it easier for customers to choose by limiting the number of options, showing what makes an option different from the others, and visually emphasizing the choice you want them to act on. Simplify Menu Navigation The navigation on your site serves two purposes: • I t helps the user find what they’re looking for. • I t helps your search engine rankings. Website visitors should come first, search engines second. Use descriptive navigation instead of generic text. Use words your visitors would use and words your visitors are searching for. It’s fewer clicks for the user and it helps search engines indicate your relevance. Keep menus short and concise so they serve the user’s needs. Avoid the temptation to over-complicate. Your customers are on your website to do something, so the navigation should help them do that thing as quickly and pain-free as possible. Pricing The debate on whether or not to include prices on the dealership website rages on. Why? Because every dealer is different and website owners look to Google to help them decide, which often only confuses the situation. The fact is to make a website more customer friendly, there are good reasons to list pricing, or at least a “starting at” price or range of prices: • Give visitors what they want. If someone loves what they see but they have to email you to get pricing, you may never hear from them. And, poor user experience may cause them to tell others. • Saves visitors time. People have an idea of what they can spend. Pricing saves time for those people who aren’t your target customer for budget reasons.
14 INDEPENDENT DEALER NEWS SEPTEMBER/OCTOBER 2019 WWW.OHIADA.ORG
• Save yourself time. Pricing on your site allows potential clients to figure out what a vehicle or service will cost them without bombarding your inbox with inquiries. Clear Calls to Action Calls to action (CTA) should be strategically placed and designed to stand out. Buy now buttons, lead forms, contact pages, click-to-call buttons, newsletter sign ups and more are all crucial to your website performing the way it should. Use strong command verbs: • When a visitor is on a specific vehicle, “Schedule a Test Drive” is a good next step for them. • How about a simple vehicle inquiry? Start your CTA with words like “Find Out More” or “Got Questions?” • Are you looking for more newsletter subscribers? Start your CTA with words like “download” or “subscribe.” • Want someone to request more information? Try “fill out a form for…” or “find out how…” Guide your website visitors through the buying journey with strategically placed, clear calls to action. Focus your efforts on outstanding website user experience. Ninety-five percent of all vehicle purchases begin online. Take a few minutes and go through your website as your customer would. Make note of what works for you and what doesn’t. Take these simple fixes to make your website more customer friendly to your company website provider. Ask them to consider each one and how it may improve your conversions. The changes will help you avoid the negative results that happen on your store’s website and ultimately delight your customers. Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc., which coaches, trains and delivers webinars focused on integrating social media and online reputation management into dealership operations. She can be reached at kathi@ krusecontrolinc.com.
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• Training for new & experienced operators • Network with industry experts • Capital to fund your operation • Collections & underwriting training • Best practices that work today and in the future • The latest marketing strategies • Legal and compliance updates • Exhibit hall with all the latest products & services • New industry technology • And MUCH MORE!
Visit: NABDsubprimeconference.com or call: 832.767.4759 16 INDEPENDENT DEALER NEWS SEPTEMBER/OCTOBER 2019 WWW.OHIADA.ORG
Choose Your
Conference Experience
ELITE Package
Express Package
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• All Educational Sessions • Includes General and Breakout Session • Exhibit Hall Access (4 sessions) • Includes Food and Beverage • Separate Check-in Counter • VIP Meet & Greet Reception • Monday, VIP Sky Bar Party
• All Educational Sessions • Includes General and Breakout Session • Exhibit Hall Access (4 sessions) • Includes Food and Beverage
HOTEL INFORMATION Marriott Marquis Chicago McCormick Place 2121 S Prairie Ave Chicago, IL 60616
Room Rate: $199/night + tax Reservations: Phone - 312.824.0500 (Reference BHPH Conference)
SALES MATTERS |
By John Chapin
THE DIFFERENCE BETWEEN SUCCESS AND FAILURE
Important Factors
Several important factors separate those who succeed in selling from those who fail. Although some of the following items are arguably more important than others, they are all critical to a salesperson’s success. When I talk about top salespeople, I’m referring to people who are not only great at the profession of selling, but also great human beings. T W E LV E S U C C E S S FA C TO R S Great Attitude
Top salespeople have a positive, “can do,” winning attitude. Specifically, they have enthusiasm, drive, competitiveness, and confidence. Top salespeople are highly motivated to succeed. They see selling as a competition, and they love competition. Top salespeople do whatever it takes to win – ethically – and they do not quit. They are extremely persistent. They are always moving ahead, changing, growing, and pushing through the bad times until they make it. They never give up on themselves and their dream of success. Top salespeople have a win-win attitude. They are genuine and truly like and care about other people. Action Oriented
Top salespeople are people of purposeful, focused, well-thought-out, massive action. They are clear about what they are doing and why they are doing it. They don’t procrastinate. They are protective of their time and use it wisely. Top salespeople have a plan and they work their plan every day. They know what actions lead to their success and that’s where they spend their time. Preparation
Top salespeople are prepared for anything and they over-prepare for everything. They never wing it. They have prepared scripts, presentations, answers to objections, and proposals. They practice, drill, and rehearse. They never rest on their laurels and are always looking for ways to improve. They are ready for anything and expect the best, yet they have a plan if the worst, or anything else, shows up. Businesslike and Business-Savvy
Consumers are smarter and competition has increased. Top salespeople partner with customers and build a compelling business case based upon what’s best for the customer. They know their customers’ business and problems intimately. They ask intelligent questions that both set them apart from other salespeople and, more important, let the customer know they thoroughly understand the business. Top salespeople know and embrace technology, but not to the point where they distance customers and/or remove the human
element.
Ability to Stand Out from the Crowd
Top salespeople differentiate themselves from other salespeople. They don’t sound or act like other salespeople. They are original. A top salesperson doesn’t come across as someone trying to sell. He or she comes across as an interested and informed party there to help. Top salespeople have an aura of respect around them. The way they walk and talk demonstrates they are professionals and, in turn, are treated professionally. Top salespeople are real, human, and down to earth, and people like them for this reason. Their caring, sincerity, and helpful dispositions stand out. They are memorable. Likeability, Trustworthiness, and the Ability to Build Relationships
Selling is about doing everything necessary to build solid, loyal, long-term relationships. Top salespeople develop and nurture customer relationships and consider most of their customers to be friends. They have the ability to put people at ease and win others to their side, to establish a connection, and build rapport quickly and effectively. They build trust and credibility. They are genuine, open, and honest. They convey a sincere interest in other people, what makes them tick, and what interests them. They truly like to serve people. Effective Communication
Top salespeople are great communicators, knowing what to say and when to say it. They actively listen and are able to hear people well and read between the lines. They ask good questions, listen well to the answers, and take notes. Top salespeople don’t confuse people by giving them more information than they need; yet they give them enough information to make a well-thought-out buying decision. Top salespeople have frank, direct conversations with people. Empathy
Top salespeople have empathy for their customers and prospects. They are able to put themselves in other people’s shoes. Top salespeople enjoy helping people and they believe, with every fiber of their being, that buying their product or service will help people. Professionalism, Integrity, and Work Ethic
Top salespeople are complete professionals with complete integrity. They have a great work ethic. They are always on their best behavior because they’re aware they never know who is watching them. Top salespeople are honest. If they don’t know an answer, they admit it, find the answer, and follow up promptly. They are straightforward.
18 INDEPENDENT DEALER NEWS SEPTEMBER/OCTOBER 2019 WWW.OHIADA.ORG
Top salespeople work both hard and smart. They don’t rest on their laurels when things are going well. They go the extra mile and always deliver more than they promise. They return phone calls and reply to correspondence promptly. Top salespeople take 100 percent responsibility for everything they do, both professionally and personally. Team Player and Leader
Top salespeople look for ways to contribute to the team. They share information and success stories that may help other salespeople in their company. They pull for their peers and colleagues. They use a big sale by another person in the office to motivate them. They are focused on becoming better as individuals and believe that by doing so, they help the people around them improve and make their company stronger. Top salespeople work well with other departments and develop strong professional relationships with co-workers. They get along with everyone. Top salespeople are leaders. They expect to be at the top and they are comfortable there. They do not look down on or see others as inferior. Continuing Education and Training
Top salespeople are always getting better at selling. They read sales books, listen to sales information at home and in their car, watch videos, and talk to other successful salespeople. They constantly look for ways to improve. They know selling and they know their business, yet they also know there is always more to learn. They study their competition inside and out. Top salespeople stay up-to-date on all new developments in their industry and everything that could affect business. They are constantly looking through trade publications and magazines. Company Product and Support
Top salespeople cannot remain at the top without reliable products and support. They pick companies and products in which they can believe 100 percent, and they continue to look for reasons their product is better than any other. While twelve factors may seem like a lot, the keys are: having a great attitude, a sincere interest in helping people, and a burning desire to succeed. John Chapin is a sales and motivational speaker and trainer. He has over 31 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For more information, visit www. completeselling.com or email johnchapin@completeselling.com.