DEALER NEWS
S TAT E A F F I L I AT E
R E P R E S E N T I N G A L L A U T O, T R U C K , TRAILER, RV AND POWER SPORT DE ALERS OF OREGON
THE OFFICIAL MAGA ZINE OF OREGON IADA D E C E M B E R 2 0 17
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06............................................................. Building New Roads 07.................................................Avoid Post-Sale Complaints 08..............................................OIADA Convention Highlights 10............................................................. Washington Update 12..............................................................New Profit Sources 13.................Determine Sales Team Preferences for Training
WHAT’S NEW
SPECIAL FEATURES: DISASTER RELIEF
NIADA and Spireon recently teamed up to provide disaster relief to those directly impacted by hurricanes Harvey and Irma. Partnering with the NIADA Foundation Disaster Relief Fund, Spireon is contributing $100,000 through the end of the year to help with recovery. Spireon is also helping customers get their businesses back up and running through data on their NSpire platform. To learn more, check out the story on NIADA.tv’s Special Features channel.
ADVERTISERS INDEX
ADESA.....................................................................................5 DAA Northwest/Seattle......................................................IFC Lobel Financial.........................................................................3 Manheim................................................................................11 Manheim Portland..................................................Back Cover NextGear Capital...................................................................12 Passtime..................................................................................7 VAuto...................................................................................IBC
OFFICE
Oregon Independent Auto Dealers Association 9150 SW Pioneer Ct Ste. H Wilsonville, OR 97070 800-447-0302
NIADA HEADQUARTERS NATIONAL INDEPENDENT AUTOMOBILE
DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 OIADA Dealer News is published 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 6006-5203. The statements and opinions expressed herein are those of the authors and do not necessarily represent the views of OIADA Dealer News 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
ASSOCIATE MEMBERS ADVERTISING/MARKETING
Autotrader.com 866-836-1455 Used Cars.Com by Dealix 650-599-5616 Cars.com James Lynch 312-601-5052 Carsforsale.com Grant Lockner 605-306-3492 Interactive Financial Marketing Group Travis Weisieder 804-248-0892 ATTORNEY
Byrd Cabrera LLP Robert (Scott) Byrd 310-365-1954 AUTO PARTS
AutoZone, Inc. Daniel Narvaez 971-218-2300 AutoZone Inc Ray Curry 503-964-9420 BOND & INSURANCE
Hecht & Hecht Insurance Agency Larry Hecht 503-542-1130 Shepard & Shepard Business Solutions Todd Shepard 1-855-396-0488 #8 Kelly Martin Insurance Agency Kelly Martin 503-625-2615
DEALER AUCTION
Manheim Seattle Auto Auction Ray Priest 206-762-1600 Manheim Portland Auto Auction Alex Fraser 503-286-3000 ADESA Seattle Auto Auction Mark Dumbler 253-735-1600 DAA Seattle Dave Blake 253-737-2200 United Vehicle Auctions Lori Jacoby 503-380-1927 ADESA Northwest Auto Auction Mark Melton 541-689-3901 ADESA Portland Auto Auction Jerry Hinton 503-492-9200 Crosspoint NW Dealer Auction Brian Hardy 503-594-2800 DAA Northwest (Dealers Auto Auction) Mitzi VanVoorhis 509-244-4500 CarMax Sean McDonald 804-747-0422 DEALER SOFTWARE
Frazer Computing Inc Jake Morley 888-963-5369 Motor Vehicle Software John Brueggeman 546-270-6699 FINANCING
Credit Acceptance John Bragg 360-980-2214
Lobel Financial David Lobel 714-816-1301 Oregon Auto Finance Gary Veum 541-868-0472 The Equitable Finance Co. Brandon Fox 503-808-7939 Pac West Credit LLC John Kiefer 541-868-2595 United Finance Todd May 503-238-6488 Oregon Community Credit Union Rich Black 541-681-6311 Nationwide Insurance Mark Tischer 503-339-4165 Credit Concepts Inc Jason Moon 541-342-8545 Veros Credit John Pierce 714-415-6125 x21131 Reliable Credit Associations David Marx 503-462-3022 Ted Investment LLC Tom Garza 503-213-1109 FLOORPLAN
Lobel Financial David Lobel 714-816-1301 NextGear Capital Robert Torbet 503-358-3911
OIADA BOARD OF DIRECTORS
INSIDE
Floorplan Xpress Josh Chandler 503-621-9260 Auto Cap Services (ACS) Michael Smith 800-800-6494 ONLINE REVIEW MANAGEMENT
Podium Kaylie Smart 801-376-0677
PUBLIC AUCTION
Woodburn Auto Auction Steve Morin 503-981-8185 Petersen Auction Group of Oregon Curt & Susan Davis 541-689-6824 SECURITY
Pro-Vigil Kris Brackin 210-858-1105 SERVICE CONTRACTS
AUL Corporation Jacqueline Swank 800-826-3207 Elite Warranty, Inc Al Ham 503-530-0912 Automotive Business Developers Shannon Meany 541-944-9186 Benchmark Dealer Services Jacob Bangert 360-834-3333 Protective Asset Dylan Doran 818-836-1455
PRESIDENT Siamak Lotfi
EXECUTIVE VICE PRESIDENT Jim Weaver
1ST VICE PRESIDENT Gary Brooks
SECRETARY/ TREASURER Salvador Alvarez Herrera Zamora Auto Sales
CHAIRMAN OF THE BOARD Gary Sargent
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OIADA / December 2017
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MANAGEMENT MATTERS
BY JUSTIN M. OSBURN
RETAIL READY Building New Roads in 2018
In the United States, millions of drivers jump in their vehicles and take to the roads each day. These drivers are from different states and backgrounds, with different levels of education. Though a diverse group, almost none just get up and decide to drive down the wrong side of the road. Why? They know this would be high risk for the safety of themselves and others. They know which side of the road to drive on and at what speed because the federal, state, and local road officials have a common vision of how traffic should flow. To prevent accidents and tragedy, drivers must receive communication from those visionaries. This communication is done primarily through driver’s education and signs. The road visionaries did not expect traffic to just “know” when to stop, when to not pass, what speed to drive, which side of the road to drive or when to exit or stop. Similarly, most workers get up every day with the intention to go to work and do the right thing. Most do not get up with malicious intent to cause chaos at their work place, or at your dealership. However, when the dealer and organizational leaders have not stepped back and thought about how they want their “roads” to function, the vision they have cannot be communicated. Leaders must decide which side of the road drivers will drive on before they can post the sign. The leaders must decide how fast people should drive for safe and efficient travel before they can post a speed limit sign. At the dealership, the senior leaders must have a vision how the business will operate before they communicate it to their team. Leaders must decide what the sales process is before they communicate such to the sales team. If the visionaries of the road system just built a road and no one took the time to decide how it would function, can you imagine what chaos traffic would present each day? Imagine no rules, no signs, no stop signs, no stop lights, no yield signs, no “no passing” zones and signs. Without an organizational vision for your operation, your business might resemble a road system with no thought or communication on how to use it. If you’re familiar with my “Gears to Profitability” dealer model, you know internal service quality precedes external service quality and the result and combination of both dictates profitability. Your responsibility as a leader is to provide short and long term vision. I find many dealers are confused what that means. Back to the roads, if you decide
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roundabouts are safer and more efficient than traffic lights, visionaries will begin to plan the best place to put a roundabout, what the flow of traffic will be and what rules and signs will organize it best for drivers. This is a long term vision. However, if a bridge is about to fall down and requires immediate repair, or an ice storm hits and salt is needed in the dead of night, this is a short term vision to keep traffic flowing until the longer term possibilities are completed. The dealership’s overall vision sets the framework that each leader inside of the business uses to create their own vision for individual departments. Think of the department managers as state and local roadways working together in congruence with overall highway rules. Leaders take responsibility for creating and communicating a compelling vision. This is essential for leading your team to success on the lot, in service or in the office. There is no better time to create and drive a clear vision than at the beginning of the year. So what is a strong and clear vision? It is a picture of the future that is created in the imagination and catalyzes action! The compelling argument for a clear and communicated vision is to prevent organizational chaos. Each leader’s vision is critical to individual success and impact. Effective leadership focuses on doing the right things. Do you do the right things? Do you do things right? Does your team do the right things? Do they do things right? First, know and understand the vision of the organization, how the roadways work. If you are the dealer, have you communicated the vision of the business clearly? This will enable your leaders to develop their own visions within the areas they control in the business to support the overall goals of the dealership. Second, leaders must create a vision that supports and contributes to the overall vision of the organization or department. As a leader, it is not healthy to construct and distribute a vision that is not a primary effort to advance your department toward the overall vision of the business. Doing so will cause you to conflict with the business itself, resulting in friction with other leaders in the operation, conflict with other departments and confusing communication to those in your charge. Imagine you are in charge of the roadways in a small town, and you decide it
makes more sense for everyone to drive on the left side of the road. Your vision is not congruent with the overall operation’s vision and will cause chaos and tragedy. Last, communicate the organization’s vision in a way that is compelling and inspirational. Part of your responsibility is to consistently broadcast the direction of the department and the dealership to nonleaders on the team. When you are traveling in an unfamiliar, large, downtown area and using GPS to assist you, the directions for your next turn are given two miles, one mile, and half a mile in advance as well as at the time of the turn. Signs are also used, frequently, to communicate the vision – think exit signs, speed limit signs, mile markers, etc. All these communications work to support the overall operational objective. As a leader in your organization, your behaviors demonstrate your vision and impact your dealership’s success. If you tell your team to drive 65 miles per hour on the right hand side of the road, but every day you drive 85 miles per hour on the left hand side of the road, you are not offering yourself or the organization any value. How well does your vision create a shared and meaningful purpose? Does it inspire passion and interest? Does it guide decision-making and strategy? Does it convey values? Effectively communicate your vision. This allows others to decide to follow your vision. The impact is emotional commitment. The New Year brings new beginnings. The page is turning and it brings a fresh start mentally and emotionally. We step out in January and breathe in the new air while feeling anticipation of how this year will be better than the last. While most of us “feel” this reset, it fades away in a relatively short period of time. Make a long lasting effect this year. Imagine and motivate with a vision. I get great satisfaction receiving all of your emails. I’d love to hear your story on vision. Also, contact me for more information on Gears to Profitability or an NIADA 20 Group. Write me at justin@niada.com. JUSTIN OSBURN is a moderator, consultant and trainer for NIADA Dealer 20 Groups, offering more than a decade of experience in retail and Buy Here-Pay Here executive management. He can be reached at justin@niada.com.
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ACCELERATE
BY GWC WARRANTY
AVOID POST-SALE COMPLAINTS Three Easy Steps
With the voice today’s modern consumer has on social media and online review sites, it would be naïve to think a dealer’s obligations end the day of a sale. How a vehicle performs in the months following a sale – and how you prepare your customers – can go a long way toward shaping your reputation both online and in your community. The fundamentals of avoiding postsale complaints begin with protecting your customers from the unexpected. Nothing helps guard your customers against being blindsided by repair costs better than a vehicle service contract. With this in mind, the following steps will help you properly prepare your customers who purchased a vehicle service contract for the unlikely event of an unexpected mechanical breakdown. Train Yourself There’s no way you can effectively present the benefits of your service contract offering without first educating yourself on all the ins and outs. Knowing the subtle differences between coverage levels and the finer details
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about component coverage, claims procedures and limits of liability will help you pass this knowledge along to your customers. If you’re going to educate your customers in a way that protects your reputation, you will first need to be a subject matter expert yourself. Delve Into Details Getting deep into the details of a service contract isn’t recommended for your F&I presentation, but once a customer is on the hook, it’s important to go over what they can expect from a repair experience. Even if you don’t do a full dive into some details, directing your customers to where they can look up claims procedures, component coverage details, labor rate information and more will provide them the resources to have a smooth claims experience. You can even direct them to the service contract provider’s website and helpful tools there that can assist in obtaining coverage details and finding a local service facility. Provide a Resource Let’s be honest. Going over component coverage, claims procedures and limits of
liability at the end of an exhausting F&I presentation can be information overload for a customer. But if you have a place on your website where customers can go to learn more about the service contract they just purchased, you’re providing them a place to learn more once they’ve come down from the excitement of driving off in their new vehicle. This spot on your website should point to your service contract provider’s resources so customers can quickly find out how to look up coverage, find a service facility and more. These three steps will help you protect your reputation and avoid post-sale complaints with actions you can take before, during and after a sale. By becoming an expert in your service contract products, passing this knowledge along to customers and providing a post-sale resource for them to use as a reference, you are fortifying your reputation by ensuring any post-sale mechanical failures can be corrected quickly.
December 2017 / OIADA
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ASSOCIATION NEWS
2017 OIADA CONVENTION A Huge Success
OIADA celebrated our 61st Annual Convention with over 100 in attendance on October 21, 2017. The association brought speakers and panelists to the stage with current and up
to date programs. These speakers included DMV investigator Robb McCracken and representatives of our dealer auctions such as panelists Dave Wilson from DAA, Alex Fraser from Manheim and Jerry Hinton from ADESA speaking on the impact of flood damaged vehicles. In addition, Marshall Zoerner provided great insight to hiring and training salespeople. Attendees received six hours of continued education, great meals by Monarch Hotel, and
new ideas from our vendors at the trade show. We thank our sponsors AutoZone, DAA Auctions Seattle and Spokane and Portland Manheim as well as all our outstanding vendors. Throughout the coming months OIADA will be promoting and providing many more class opportunities. Watch for emails and updates on our webpage.
Thank you, DAA, for sponsoring our Oregon Dealer and Associates Breakfast!
DMV’s Robb McCracken always provides OIADA with great, up to date information.
Eric and Kara Freeman and Marshall Zoerner from Freeman Motors were the first runners up for the 2017 National Quality Dealer award. Special congrats from past president and OIADA quality dealer Vince Powell!
Panelists Dave Walker of DAA, Alex Fraser of Manheim and Jerry Hinton of ADESA, also representing NAAA, discussed how the auctions will help protect our dealers when it comes to flood damage.
Legislative Report by Chairman of the Board Gary Sargent
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OIADA / December 2017
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Marshall Zoerner received great evaluations for his presentation on Hiring and Training Your Best Team.
2017 OIADA President and 2015 OIADA Quality Dealer of the Year Siamak Lotfi with Larry Hecht of Hecht & Hecht and 2017 OIADA Quality Dealer of the Year Eric Freeman.
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CONVENTIONRECAP
Congratulations to OIADA 2017 Scholarship winner Halie Steward, daughter of Bryan Steward.
December 2017 / OIADA
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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. LEGISLATIVE On Oct. 27, NIADA hosted “Used Car Buying 101,” an event for staff members of the House Automotive Caucus on Capitol Hill to educate the staffers and the members of Congress they represent about the process of purchasing a used car. The event was conducted by NIADA president-elect Andy Gabler of Lakeside
Among the Congressional offices represented were those of Rep. Mike Kelly (R-Pa.) and Marcy Kaptur (D-Ohio), co-chairs of the Auto Caucus; Rep. Kevin Brady (R-Texas), chairman of the Ways and Means Committee; and Rep. Bill Shuster (R-Pa.), chairman of the Transportation and Infrastructure Committee. REGULATORY The U.S. Congress, using its power under the Congressional Review Act, has struck down the Consumer Financial Protection Bureau’s controversial Arbitration Rule. In a dramatic late-night session on Oct. 24, the Senate approved the resolution to overturn the rule, which would have banned auto dealers and other businesses from using arbitration agreements with class-action waivers. The vote was split 50 votes each way before Vice President Mike Pence cast the tie-breaking vote. President Trump signed the resolution into law, officially
From left, Michael Darrow, Andy Gabler, Shaun Petersen and Rob Kerner explained to House Auto Caucus staffers the regulatory burdens faced by dealers and consumers in the car-buying process. Auto Group in Erie, Pa., Lakeside Auto finance manager Rob Kerner, NIADA legislative committee member Michael Darrow of The Auto Finders in Durham, N.C., and myself. They provided a demonstration of the customer and dealer experience in buying and financing a car, including all of the paperwork required in each deal. Kerner and the dealers picked a staffer from the audience to be the customer and walked the group through the entire used car buying process, explaining all the forms that need to be signed, what they’re for and why they’re required, the relevancy of credit scores, voluntary protection products offered and the various regulatory obligations that must be fulfilled, such as privacy notices. The NIADA contingent encouraged the “buyer” and audience to ask questions as they went through the deal and explained the process.
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repealing the Arbitration Rule. The House had voted to repeal the rule in July. According to the Congressional Review Act, no rule substantially similar to the one repealed can be issued without specific legislative authorization from Congress. The repeal is a victory for small businesses, which would have had to absorb the higher cost of litigation versus arbitration, and for NIADA, which actively advocated for overturning the rule and made it a point of emphasis at the National Policy Conference in September. It’s also a win for consumers, who according to the CFPB’s own study recover on average far greater payouts in far less time from arbitration than from class-action lawsuits. “This rule was nothing more than a boon to class-action lawyers levied on
the backs of America’s hard-working consumers,” NIADA CEO Steve Jordan said. “Arbitration has proven to be a faster, less expensive and more effective means of resolving consumer disputes than class-action lawsuits.” GRASS ROOTS A delegation representing NIADA, Illinois IADA and the used vehicle industry met with staff of Illinois Gov. Bruce Rauner on Oct. 11 at the governor’s office in Chicago to educate the governor and his staff on the use of GPS and starter-interrupt devices and their importance to Illinois dealers. For several years, State Sen. Steve Stadelman and the Illinois attorney general’s office have introduced legislation that would place undue regulatory burdens on the use of the devices. Illinois dealers, with help from NIADA and representatives of the payment assurance industry, have so far been successful in preventing harmful legislation, but as that type of legislative action is becoming more widespread nationwide, the dealers felt it was time to reach out to the governor so he and his staff could help. IIADA executive director Bruce Eklund, dealers Gordon Tormohlen and Steve Taylor, Ariad Sommer of Ituran GPS and I discussed the issues involved with staff representatives, who asked questions that indicated they had done their homework on the subject. The dealers presented GPS-related information as well as information about Illinois’ dealer education curriculum and a report showing the economic impact of auto dealers throughout the state. The meeting went longer than scheduled and we came away feeling the governor’s staff is open to helping the state’s independent dealers. PAC Thanks to generous contributions from 135 NIADA members, the NIADA Political Action Committee is wrapping up a record year for fundraising. At press time, nearly $200,000 had been raised for the NIADA-PAC Fund in 2017, bolstering its coffers and putting the association in a strong position to make the voice of the independent dealer heard in the upcoming 2018 midterm House and Senate elections. In all this year, the PAC distributed more than $135,000 to 15 campaign committees representing candidates committed to supporting small business, independent dealers and the used vehicle industry. SHAUN PETERSEN is NIADA’s senior vice president of legal and government affairs.
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ACCELERATE
BY GWC WARRANTY
5 NEW PROFIT SOURCES YOU CAN START TOMORROW Small Changes Can Give You a Big Boost
At a certain point, every business – even the best ones – can go stale. Numbers are good, customers are happy, but there’s always the lingering thought of “could it be better?” Oftentimes, the answer to this question can lie in the little things – small changes you can make quickly that give you the boost you’re looking for. Trying new things can be difficult and sometimes uncomfortable, which is why it’s important to start small. Giving a new approach, product or service a shot could be the first step you take toward major changes that greatly benefit you and your dealership. With that in mind, let’s take a look at five of these “first steps” you can easily integrate into your dealership. Try a New Product Your vehicle service contract approach might be spot on. Your penetration rates are high and you know just what to say to get a customer on board with a service contract purchase. But if you’re looking for a little extra F&I profit or simple ways to better protect your customers, a new product might be just what you’re looking for. Products like GAP, Certified, Service Lane and more are good opportunities for you to apply your F&I skill set on small, but impactful new products. Try a New Strategy If your vehicle service contract presentation is lacking the effectiveness you desire, trying to attack it from another angle could help give it a breath of fresh air. Luckily for you, there are plenty of online training resources available – some at no charge – that can lay out these new approaches and processes in a simple, easy-to-implement manner. Try a New Tool Customers are more savvy than ever before, especially when it comes to technology. If they’ve spent hours researching a vehicle and landed at your lot, replicating that technology experience can help them drive away in a new vehicle. Even the F&I process can be done on tablets with apps and other useful tools your provider might offer. Try a New Follow Up Plan Do you make follow up calls? Are they achieving what you’d like? Do they appeal to the modern-day customer we just discussed? Something like Covideo can go a long
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IF YOUR VEHICLE SERVICE CONTRACT PRESENTATION IS LACKING THE EFFECTIVENESS YOU DESIRE, TRYING TO ATTACK IT FROM ANOTHER ANGLE COULD HELP GIVE IT A BREATH OF FRESH AIR. way toward ensuring your message is heard. The union of personalized video messaging and email delivers your message in a candid way via a communication tool today’s customer prefers. Try New Lead Generation Even just one phone call a day can add up when it comes to your efforts to drive new leads into your dealership. If you’re selling vehicle service contracts regularly, knowing which contracts expire when can be a good start to build your call list. For GWC Warranty Elite Dealers, we even do that check for you with our Elite Lead Generator. You can also set reminders for when service contracts expire so you know when to call a customer who might be in the market for a new vehicle or another VSC. By giving one of these simple new tools or tactics a try, you’re taking an important first step toward making small changes that have the potential to make a big impact. And once you’ve perfected one, don’t be afraid to try another. The best dealerships are constantly improving, which most times means making small changes along the way that add up to major profits over time.
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IN TODAY’S INFORMATIONOVERLOAD WORLD, IT’S CRUCIAL TO OFFER SALES TRAINING THAT TAKES HOLD AND GETS USED EXTENSIVELY MOVING FORWARD. MANAGEMENT GAMEPLAN
BY SCOTT BERGERON
DETERMINE SALES TEAM PREFERENCES FOR TRAINING Optimal Learning Retention
People Receive and Process Information Differently Sales training must offer multiple options to maximize retention, leading to more productive and profitable sales practices. This includes how individuals are accustomed to getting information and their preferred learning style, which will help ensure what goes in one ear doesn’t just go out the other. While most would presume digital communication is strongly favored over print, there are some surprises out there. The key is to ask your sales team their opinions and preferences before assuming everything needs to be digital. Visual, auditory and kinesthetic (feeling/ experiencing) learning preferences also vary by person. Multiple options should be offered to accommodate. Bottom line, the messages need to stick with all types of learners and be regularly reinforced to turn new practices into firmly entrenched habits. By speaking to them in their language, salespeople also can become more attuned to how their prospective buyers process information – and communicate more effectively along the way. This can take some practice, but is a valuable skill in all relationship development.
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Where to Start Determine your team’s digital versus print information preferences. You may be surprised by their answers. Although millennials are known for being glued to their phones, many prefer print when it comes to such items as books. “Print books remain by far the most popular format among all age groups,” said a January 2017 Forbes article. “Last year, 72 percent of Americans read a print book, dwarfing the share who read an e-book (35 percent) or listened to an audiobook (16 percent). And according to the Pew study, adults under 30 are no more likely than their elders to read digital books exclusively (around 6 percent). A survey of college students found 92 percent prefer reading print material to digital material. If the cost of the print and digital copy of a leisure book were the same, 80 percent would pick the paper version. Even late-wave Millennials and [Post-Millennials] are attached to hard copies.” So, the presumption that younger sales team members want everything communicated digitally needs to be verified before making decisions. It may be that a printed piece will be the way to go, or at least get included strategically in the mix. Drill Down to Visual, Auditory, Kinesthetic Processing This is a well-established process for understanding how best to train sales forces. Molly St. Louis explained its value and elaborated on the differences in an August 2017 article on Inc.com. St. Louis said, “Whenever I’m called to ‘solve’ a business problem, it all really boils down to communication… nine times out of 10, it’s not because their ideas are bad, it’s because they don’t know how to communicate them effectively… Any good teacher will tell you that each student takes in information differently. There are: 1. Visual learners: those that need to see pictures and graphs
to visualize. 2. Auditory learners: those who need to hear the information. 3. Kinesthetic learners: those who need to engage in an activity to grasp a concept. “Approximately 65 percent of the population are visual learners…This means that using a whiteboard, projecting maps and images, or showing photos of your ideas work best… Around 30 percent of the population is made up of auditory learners, who learn best through hearing…The best way to stimulate learning and communication in an auditory learner is through discussion, group chat and in the lecture hall. …Kinesthetic learners are a complex bunch and make up just 5 percent of the population…” Given that any sales force is likely to have two or three of these preferred learning styles, how does the wise independent dealership leverage all of them without overcomplicating the process? 1. Take the temperature of the room, and then design a plan that includes everyone, using the criteria information above as a litmus test. 2. Have something for everyone. Even if the sales team seemingly consists only of visual and auditory learners, be sure to add something for the kinesthetics. This is for two reasons: a) most people have some degree of all three, no matter their primary mode; b) future hires may be kinesthetically-oriented. By designing sales training that covers all three areas, you’ve got a solid curriculum, no matter what. You can always tweak it later as developments and feedback warrant. 3. D evelop a test model, then try it out on your sales force. Given the 65/30/5 percentages cited above, it’s wise to capture visuals by including plenty of pictures, graphs, and use of a whiteboard to convey information and communicate ideas, insights, and suggestions. To address the auditory group, imagine having to train a group of blind people. Obviously, the visual aids won’t work. Create an auditory track to complement the visuals to cover this important base – and encourage discussion. For kinesthetics, include interactive exercises and encourage active participation. Role-playing is one way to engage this group. 4. Tweak as needed, based on response from team members about the value and retention. In today’s information-overload world, it’s crucial to offer sales training that takes hold and gets used extensively moving forward. 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. December 2017 / OIADA
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OIADA CONTINUING EDUCATION PROGRAM
OIADA CONTINUING E D U C AT I O N P R O G R A M
INDUSTRY PERSPECTIVE
BY DALE POLLAK
LESSONS FROM THE SALE READ & RESPOND ROLLING STONE AND CERTIFY BELOW OF Don’t Make the Same Mistakes COMPL E T E T HIS T EST A ND CERT IF Y BELOW T H AT YOU H AV E RE A D T HE A RT ICL ES FOR DECEMBER 2017.
“Retail Ready” True/False: Without an organizational vision for your operation, your business might resemble a road system with no thought or communication on how to use it. True/False: Creating and communicating a compelling vision is essential for leading your team to success on the lot, in service or in the office. What question(s) should you ask regarding your vision? a) How well does your vision create a shared and meaningful purpose? b) Does your passion inspire passion and interest? c) Does your passion guide decision-making and strategy? d) Does your passion convey values? e) All of the above. “Avoid Post-Sale Complaints” True/False: The fundamentals of avoiding post-sale complaints begin with protecting your customers from the unexpected. How can you protect your reputation and avoid post-sale complaints? a) Train yourself. b) Delve into details. c) Provide a resource. d) All of the above. “5 New Profit Sources You Can Start Tomorrow” True/False: A service contract that protects customers from budgetbusting repair bills is a great way to keep a vehicle on the road. True/False: Customers are more savvy than ever before, especially when it comes to technology. If they’ve spent hours researching a vehicle and landed at your lot, replicating that technology experience can help them drive away in a new vehicle. True/False: Even just one phone call a day can add up when it comes to your efforts to drive new leads into your dealership. I certify to OIADA that I have personally read these articles in The Oregon Dealer News Magazine for December 2017. STOP!! Before you sign and send this form, make sure you have answered and completed all the quiz questions to receive Continued Education Credits.
My Name ____________________________________________________________ ____________________________________________________________________ Dealership Name ______________________________________________________ Dealership # __________________________________________________________ Dealer License Expiration Date: (Month)_____________________________________ (Year)________________ Signed: _________________________________________ Date _________________________________________________________________
When I was a teenager, if you wanted to keep up on music and politics, you read Rolling Stone. I credit my older brothers for introducing me to the magazine. Once I’d read it the first time, I was hooked. I especially remember the writing. For me, Rolling Stone was a way to be in the front row at concerts, or behind the scenes of a political campaign, without actually being there. It didn’t hurt the magazine had an edgy reputation – just the sort of thing that made a teenage kid from the Midwest want to get his hands on the latest copy. These memories came to mind as I read news that, on the eve of its 50th anniversary, Rolling Stone is up for sale. The news didn’t surprise me. It’s been years since I’ve read a copy, and it’s tough, in general, for magazines to be successful in today’s digital age. But I was struck by some of the reasons that apparently led to the sale, and the lessons they offer for dealers. Resistance to change hurts. Rolling Stone’s founder and publisher, Jann Wenner, reportedly didn’t think a print magazine would ever fall out of favor, even as subscribers declined and shifted online in recent years. There’s a lesson here in the way many dealers regard, and often resist, the purchase preferences of today’s car buyers. I suspect Rolling Stone would be better off today if it had opted to reinvent its business and distribution model a lot earlier. The same seems to be increasingly true for dealers and the rise of online retailing. In the end, there may not be much “it” to get around to if you wait too long. Reputation and relevance are related. I can’t recall a specific reason I stopped reading Rolling Stone. I do remember the articles and stories seemed less compelling to me in college and beyond. Perhaps the last time I sought out Rolling Stone followed the controversy over its story of an alleged gang rape at the University of Virginia. I read the piece for myself and thought, “This won’t turn out well.” Subsequent investigations found serious breaches of journalistic fundamentals, all of which damaged the magazine’s reputation. Dealers would do well to remember your reputation is only as good as the worst online review or your last miffed customer. Likewise, today’s consumers have long memories, and social media outlets to vent, when you break their trust. Talent sets the tone. You could make the case Rolling Stone thrived the most when it consistently fielded top-notch writers and photographers – some of whom Wenner had the foresight and guts to give their work its first significant chance. The same is true for dealers. When your people really shine, so does your dealership. As their leader, it’s your job to create the environment where they have a real chance to reach their potential, and continue to grow as individuals. By definition, this outcome means dealers have to do way more than simply provide an attractive paycheck. A New York Times article reports Wenner, in the late ‘90s, turned down an offer of $500 million for Rolling Stone. Last year, Wenner sold a 49 percent stake in his company for $40 million. Perhaps those figures represent the biggest lesson of all. DALE POLLAK is the founder of vAuto and an executive with Cox Automotive. This column originally ran on his blog. For this story and all his posts, visit www.dalepollak.com.
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OIADA / December 2017
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