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a division of Systems Marketing, Inc. July 2005 Read this months and previous issues online at www.AutoSuccess.biz Read this months and previous issues online at www.AutoSuccess.biz . biz . biz . biz Getting and Managing Leads - Success on the Internet Getting and Managing Leads - Success on the Internet

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AutoSuccess addresses the specific, researched needs of new car and light truck dealerships by providing entrepreneurial, cutting-edge, solution-based editorials to increase dealership profits and reduce expensesAutoSuccess, magazine, sales, new, used, selling, salespeople, vehicle, dealer, dealership, leadership, marketingFor similar content visit http://www.autosuccesssocial.com/

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Page 1: AutoSuccess Jul05

a division of Systems Marketing, Inc. July 2005

Read this month�s and previous issues online at www.AutoSuccess.bizRead this month�s and previous issues online at www.AutoSuccess.biz

.biz.biz.biz

Getting and ManagingLeads - Success on

the Internet

Getting and ManagingLeads - Success on

the Internet

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Sales Catalyst™ is an integrated approach that combines consulting and support with a custom solution of services and training.

For a limited time, sign up with Who’s Calling and receive a FREE iPod Shuffle. Contact yourlocal Who’s Calling rep for more details.

Call 1.866.579.9999 to schedule a consultation with your local Who’s Calling rep or visit us at www.whoscalling.com.

The next REVOLUTION is here.

Measurement and Monitoring ServicesMaximize the return on your marketing dollars

Sales Enhancement ServicesCapture every lead you generate

Marketing Enhancement ServicesDrive your customers back into your dealership

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INSI

DE

AutoSuccess Magazine is published monthly at 3411 Pinnacle Gardens Drive, Louisville, Kentucky, 40245; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 [email protected]. Subscription rate is $75 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content, and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA.Postmaster: Send address changes to AutoSuccess Magazine, 3411 Pinnacle Gardens Drive, Louisville, Kentucky 40245.

3411 Pinnacle Gardens Drive Louisville, Kentucky 40245 ! Toll Free: 877.818.6620 " Facsimile: 502.588.3170

Patrick Luck, Editor & Publisher• [email protected]

Susan Givens, Vice President• [email protected]

Courtney Hill-Paris, Sales-improvement Strategist• [email protected]

Brian Ankney, Sales-improvement Strategist• [email protected]

Thomas Williams, Creative Director• [email protected]

Matt Marshall, Sales-improvement Specialist

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BrianTracy

Who�s Under Fire CarolMartin

Your Only Real Competition AnthonyHall

TonyDupaquierThe Art of the Business Manager

RandyBaroneOptimize Sales ... Just A Click Away

SeanWolfi ngtonLeadership Amid Change

ChrisHansonProve It

The 80/20 Rule In Selling

PaulAccinnoMaximize Your Internet Sales

PattiWoodAssessing Your Abilityto Read Body Language

RadWeaverWhat It Takes to Increase YourSales From 40 to 500 per Month

MarkTewartThe Powerful Sales Person

JimAdams

How to Attract Quality TrafÞ c

KirkManzoFull Price is a Fair Price, Part 2

TomGegaxLoosen Up, It Keeps Grumbling Down

DavidKain

Hi, I�m Pushy and Obnoxious ... Wanna Buy Something MichaelYork

God Bless America

Performance Criteria Takes Internet Sales to the Next Level

Value Selling

ScottJoseph

Isaiah 40:31“They will soar on wings likeeagles.”

Burdens are God-given, leading us to wait upon Him. Once we have done so, the burden is tracsformed into a pair of wings through the miracle of trust. The one who was weighted down “will soar on wings like eagles.”

Psalms 82:6“I have said, Ye are gods; and all of you are children of the most High.”

BrianAnkneyGetting and Managing Leads - Success on the Internet

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8

The 80/20 Rule In Selling

BrianTracy

You have heard of the Pareto Principle, the 80/20 rule, which says that 80 percent of the sales are made by 20 percent of the sales

people. Depending upon the sophistication of the industry and the level of training, the ratio can be 90/10 or 70/30, but in large national sales forces, the 80/20 rule seems to hold true. Twenty percent of the sales people make 80 percent of the sales and earn 80 percent of the commissions, while 80 percent of the sales people make only 20 percent of the sales and share only 20 percent of the commissions.

What this means in dollar terms is shocking! If 10 sales people are making a total of $1 million in sales in a given period, this means that two of the sales people are making $800,000 dollars of sales and eight of the sales people are making $200,000 dollars of sales. This is a ratio of 16 to one. The top sales people are out-selling the bottom sales people by 16 times! This difference in sales results cannot be explained simply by sales technique and methodology. There is something else going on, and that something else is the mind-set or psychology of the sales person.

In every large company, there are sales people earning $25,000 per year and there are sales people earning $250,000 per year. They are selling the same product, to the same people, at the same price, under the same competitive conditions, into the same market and out of the same offi ce. Yet, one of them is selling and earning 10 times the amount of the other.

Is the person earning 10 times the amount of the other working 10 times as hard? Is he or she putting in 10 times the number of hours? Does he or she have 10 times the level of education? Does he or she see 10 times the number of prospects? Is it possible for the high-earning sales person to be 10 times better, in any area, than the person earning one-tenth as much? Of course not.

Here are two things you can do immediately.

First, determine the income of a sales person in your fi eld who is in the top 20 percent.

Set that income as a goal and work toward achieving that level every day.

Second, go to one of the top sales people in your fi eld and ask for advice. Whatever advice you get, act on it immediately and report back, asking for more advice.

This strategy could save you years of hard work.

Brian Tracy is the chairman and CEO of Brian Tracy International. He can be contacted at 866.300.9881, or by e-mail at [email protected].

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Page 9: AutoSuccess Jul05

july 2005 9

What It Takes to IncreaseYour Sales From 40 to 500 per Month

RadWeaver

In one month, Red McCombs increased sales from 40 to 500 by utilizing a new digital marketing strategy. Gross profi t increased

from $60,000 to $750,000 per month, and closing ratio rose from 3 percent to 19 percent. When dealers ask how we increased sales so dramatically, we answer that we increased our volume by changing the way we advertise, market and sell over the Internet.

The top 8 tips for extra Internet sales:1. Leadership commitment: The Dealer, GM and entire management team must become involved and committed from the beginning. We found it helpful to bring in an outside consulting company to facilitate our initial strategy meetings.

2. Defi ne your Internet Sales Model (Internet Department vs. centralized CRC) and support it: Depending on the size of your dealership or dealer group, you may fi nd that a dedicated Internet department is the best way to handle lead volume. Or you might choose to set up a Customer Relationship Center (CRC) that handles all inbound phone and Internet traffi c. We debated the pros and cons of each model, made some tough decisions, clearly defi ned our strategy, and moved forward. We support our decisions every day with the right budget, the right people and the right tools.

3. Track your cost per sale: Like most dealers, we rely on third-party providers for some of our Internet lead volume. Because we use our CRM tool to track and measure all of our performance results, we know that our closing ratio for leads that come from our own Web site is 20 to 25 percent, compared to 10 to 15 percent for leads that come from third-party providers. Therefore, our goal is to ensure that the majority of our leads are coming from www.RedMcCombs.com, and that we only use lead providers who give us a clear return and can keep our cost per sale around $200 per vehicle.

4. If you’re not getting results from your Web site, partner with a provider that can deliver: The quality of a Web site can be measured by its conversion ratio, which indicates how well a Web site converts visitors into leads. Averages range from 1 to 3 percent, and before making the switch to our new site, we struggled to improve our average by improving our templated Web sites from

many of the other industry Web site providers. Still, we were failing to generate results. When we made the switch, our conversion ratio shot up to 10 percent and even reached as high as 15 percent—which translates to a 500 percent increase in leads. The lesson here? Abandon what has proven to be unsuccessful and sign with a Web site provider who’s capable of converting visitors into leads.

5. Defi ne your Internet Marketing Strategy: To increase traffi c to our virtual dealership we built an Internet marketing strategy that includes high-end, animated, bulk e-mail campaigns. We’re able to launch and execute a targeted marketing campaign that is quick, easy, cheap and measurable.

6. Recruit, hire and train the right people: By studying the industry’s most successful Internet sales staff, we learned that it’s easier to teach technology to a great sales person or to someone who’s a superstar on the phone than it is to teach sales skills and phone skills to someone who’s a technology whiz. We then created a profi le and a clearly defi ned job description for each position within the department, so that when lead volume increases, we’re prepared to bring on additional staff. Fortunately, our digital marketing system automates much of the process, which means that we can handle more leads with fewer people.

7. Clearly defi ne each step of your Internet Sales Process: The process is very important because if you have a lot of leads but you don’t have the process to turn those leads into sales the department will not succeed. To implement the right process, you fi rst need to defi ne a process that incorporates proven best practices. The second step is to train the process. The third step is to use reports to monitor and measure the process. The last step is to use the reports to identify problems and opportunities to continuously improve the process and the results. This approach will help you make smarter decisions and target your training to ensure positive growth.

8. Manage and measure your performance results: The best part about Internet marketing is that everything is measurable if we use the reports to which we have access. This has been key to our ability to grow our sales from 100 to 500. Fortunately, our reports are automatically e-mailed to us daily, weekly and monthly which makes it easier to identify issues before it is too late at the end of the month. The most important numbers are the following:

• Number of visitors to your Web site • Conversion ratio (this is the percentage

of visitors that convert into leads)• Closing ratio (percentage of leads

that turn into sales. This is driven by other metrics including quick response times, high appointment and high show ratios.)

• Average gross profi t drives the monthly and annual profi ts.

• Cost per sale by lead source including your Web site and third-party lead providers.

ConclusionWe went from 40 online sales to 500 and lowered our cost per sale after switching from a templated Web site. We have increased gross profi t from $60K a month to more than $750K with our new digital marketing system. The best way to increase market share in today’s highly competitive retail environment is to implement an Internet marketing strategy alongside a CRM program.

Tips for eCommerce Success• Create a detailed plan for using

eCommerce and CRM to improve business.

• Invest in technology that attracts more opportunities and encourages long-term accountability.

• Increase marketing through advanced search engine placement and bulk

e-mail marketing.• Use referral services that track cost per

sale for all sources. Create a Web site with leads that have a higher closing ratio than other lead sources.

• Recruit people with previous automotive sales experience who have great phone and follow-up skills and proven CSI.

• Create an Internet process that turns leads into appointments and sales. Give your team more time to set appointments and sell cars.

• Create a pricing philosophy that is competitive that also preserves gross profi t.

• Implement, measure and manage information needed: leads by source, response rate and time, appointment percent, show percent, closing percent, cost per lead and cost per sale.

Rad Weaver is the director of eCommerce for RedMcCombs.com. He can be contacted at 866.210.2838, or by e-mail at [email protected].

Page 10: AutoSuccess Jul05

10

Performance Criteria TakesInternet Sales to the Next Level

DavidKain

The Automotive Internet as a marketing tool for dealerships started in the mid ’90s and has developed into the preferred choice

for consumers to start the vehicle-buying process.

It is no wonder customers prefer this method for car shopping. It gives them control and allows them to decide when they interact with a dealership. Technology gains have come as a result of one-up-man-ship with everyone trying to outdo the other in the quest for the customer’s attention with the ultimate goal of a request for price or information from the customer. With multiple photos, 360 views, virtual test drives, trade evaluators, payment estimators and so on, we have convinced the customer that everything can be done online. In fact, it has become so easy for customers to shop online, one could make a case that all goes pretty smooth until the actual involvement at the dealership level by an Internet sales specialist.

Could the Internet sales specialist actually become an impediment to your customer’s online purchase?

Imagine the customer cruising along online, researching the vehicle he or she wants, checking out available inventory, determining the value of the trade in, checking out fi nancing options and deciding the timing is right to submit a lead. When the customer decides to click the submit button one can assume the customer would expect the offl ine part of the process to match the ease and effi ciency of the online process. At least that is what is advertised on the site with the “no hassle” and “easiest way to buy a car” statements prominently displayed on the Web sites of dealers, manufacturers and lead providers. Unfortunately, once the customer clicks the submit button, things tend to get a bit off track.

In the last decade we have seen a great deal of technological advances that have propelled the automotive Internet business forward. Dealerships are more prepared than ever to greet the customer electronically and service them in a manner that meets their every need with one exception: A well-prepared Internet sales specialist! For whatever reason we spent time, effort, energy and money developing better Web sites, better lead handling tools, better lead providers – just about better

everything, except where it matters most – the Internet sales specialist.

Performance criteria elevates the entire Internet operationAssuming you have selected the right people to work in your Internet department you will fi nd yourself having much better results if you start out with clearly outlined performance criteria. By having a bar set high for performance you will fi nd people trying to reach the level you set and then some. Most of your sales staff needs constant motivation to stay focused and setting standards of performance allows them to know on a continuum what it takes to succeed. Just like we have standards on the sales fl oor for salespeople to meet, we need to have them in the Internet department. When I work with dealerships I ask the fl oor salespeople what is expected of them and they typically respond with “I need to sell at least 10 vehicles a month with a close rate of 20 percent from fl oor traffi c to keep my job.” If you only used this simple formula for your Internet sales team you would be ahead of many dealerships. However, if you really want to make your Internet department rock you have to expect a great deal more.

The following is an example of what high achieving Internet departments establish for their Internet sales specialist performance criteria:

1. Product knowledge proÞ ciencyOnline consumers consistently express disappointment when they interact with a sales professional who does not know their products inside and out. To address this issue an important criterion for working with Internet customers is to be a product knowledge “expert.” This means both new and used models.

Set a standard that each person in the department has to achieve certifi cation from the manufacturers you represent, as well as ongoing knowledge of your pre-owned inventory.

2. Process knowledge proÞ ciencyDuring a conversation with an Internet customer your Internet sales specialist will be asked a number of questions about the processes in your dealership. How do you value my trade? How do you arrange fi nancing? Having a script goes a long way in preparing for these contingencies. But a better method is for your specialist to really know how things work. If the customer detects your staff is not aware of how things work and, more importantly if, you have not prepared your staff with scripts on how to address process questions you are likely not going to see the customer on your showroom fl oor. Set criteria for your staff on how to address process questions and practice their responses each month to keep them qualifi ed to work with your Internet customers.

3. �Kept� appointment objectives (percent of total leads)To sell vehicles you have to get the customer into the showroom. By setting a performance standard for this criterion when you bring people in to staff the Internet department you clearly establish what is necessary for them to succeed in this position. Set a goal of 30 percent in this area and measure their results. If they meet their goals then reward them, and if they don’t then evaluate their efforts, provide the necessary training, tools and encouragement to stimulate better results. Most importantly, if they don’t measure up after you have invested the effort in them, move them along and bring in the next candidate until you fi nd one that fi ts.

Measure, reward and adjustOnce the performance criteria are established, set up your measurements, reward good performance and adjust and train to stimulate better results.

David Kain is the automotive Internet training specialist at Kain Automotive Inc. He can be contacted at 800.385.0095, or by e-mail at [email protected], or visit www.kainautomotive.com.

Once the performance criteria are established, set up your measurements, reward good performance and adjust and train to stimulate better results.

Page 11: AutoSuccess Jul05

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Page 12: AutoSuccess Jul05

12

AnthonyHall

Your Only Real CompetitionThe only competition you truly have is yourself; in other words, your beliefs or outlook, your mindset and way of

doing things are your competition. Some of you may already embrace this notion. Let’s explore it on a deeper level.

There are several words synonymous with competition. They are struggle, resistance, disagreement and confl ict. “Competition” implies one side working against the other.

The two competing sides that I’m referring to as it relates to each of us are as follows: That which you are comfortable doing and that which you haven’t done or tried consistently yet.

In truth, you are really competing against what you did yesterday. You’re competing against the status quo; you’re competing against feeling and doing what’s predictable

with feeling uncomfortable and doing what hasn’t been proven yet.

To illustrate this point, let’s look at the story of Steve. Steve is a sales person at a dealership in a competitive northeastern market. He had a hard time with consistent sales and profi t on a monthly basis. Like many sales people he would have inconsistent grosses and unit volume. He didn’t really have a specifi c sales process laid out. He wasn’t organized and didn’t adhere to any type of daily routine. Sound familiar? “Sales are tough,” he said. Steve felt his vehicles were just like any other vehicles. As such, his typical approach was to try to sell on price, rather than value, making it even more challenging to produce the results he and his dealer wanted, especially since they weren’t the least expensive option.

Steve spent a few weeks in training and put together a process he was comfortable with based on new knowledge and a solid process. He upgraded his mind set and removed some

mental barriers that were preventing him from engaging in the activities that yield the greatest return. Steve put together a routine that outlined the measurable activities he needed to engage in on a daily basis. Such as 20 minutes a day committed to sales training, attitude development and product knowledge. He also set up daily goals and things to do to track his productivity.

The result? Steve increased his unit volume by 30 percent and his grosses by 50 percent in just a few months.

So the question is, did his outside competition change during this period of time or disappear from the market? Did the economy dramatically turn around? Did his vehicle demand suddenly skyrocket or become more unique?

Steve accelerated to a higher level of productivity because of the work he did and the focus on things that he can control, which is the path he chose to take as it relates to his development and daily activities.

Steve embraced his biggest competitor which was himself. He turned this adversary into his greatest ally. For example, he started bringing in new business through prospecting, and instead of thinking that every prospect you meet with is a potential sale for you to win, consider that every sale is already yours for the taking. Therefore, each sale is yours for you to lose; not to your competition but to yourself based on how well you develop and manage your selling process.

The next time you run up against some resistance when selling, remember Steve. Remember who your competition really is and embrace this as an opportunity to refi ne how you approach selling and your prospects. Compare your progress today against what you did yesterday, not against what others are doing. This is the only accurate measurement of your growth and evolution. After all, once you get yourself out of your own way, that’s when extraordinary things start to happen!

Anthony Hall is a training consultant at Ziegler Supersystems. He can be contacted at 800.610.9047, or by e-mail at [email protected].

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Page 13: AutoSuccess Jul05

13

LeadershipAmid Change

SeanWolfi ngton

Leadership is about dealing with change. As the automotive industry becomes more competitive and complex, leaders that

can thrive in an environment of change, stand out from the pack. In our rapidly evolving world, the true leader thrives in an environment of change.

The leader proves his or her worth by: • Creating a vision• Aligning people• Motivating and inspiring people• Creating a culture of leadership

Creating a VisionLeaders develop a vision of the future and create strategies to fulfi ll that vision.

Vision and strategy are not the same as planning. Planning is a management process designed to bring about order, not change. Planning should be a compliment to creating a vision, not a substitution for it.

Vision does not have to be original. However, what is crucial is how well it serves the needs of customers and the dealership team. The success of the vision depends on how well it can be translated into a realistic competitive strategy. If a leader lacks the skill, time or know-how to plan a realistic and competitive strategy for implementing his or her vision, that’s OK as long as they have a partner, a team of managers or a consulting team that specializes in planning for results to bring the leader’s vision to life.

Aligning PeopleLeaders align people. They communicate vision so that people understand and are committed to it.

A central feature of the modern dealership is interdependence of each department, and an individual’s success is increasingly tied to the work of other individuals. Aligning people to move in the same direction is a challenge of communication and credibility. The message must be communicated to all involved: general managers, sales managers, BDC managers, used car managers, service and parts managers, business managers, service writers, sales people, BDC specialists, receptionists, greeters, etc. After the team understands the message, they must believe in it.

Successful alignment empowers people.

When a clear vision has been communicated throughout the dealership, employees on the front line can take initiative in situations, without the fear of reprimand. Furthermore, when everyone’s vision is aligned, one person’s initiative is less likely to come into confl ict with another’s initiative.

Motivating and Inspiring PeopleLeaders motivate and inspire people. They keep people moving toward the organization’s vision by appealing to basic human needs, values and emotions.

If leadership is dealing with change, then being able to motivate people is crucial. It is important to cope with inevitable barriers to change. Successful motivation ensures that people will have the energy to overcome obstacles.

Leaders motivate people in a variety of ways. They articulate the organization’s vision in a manner that builds on the values of the audience they are addressing. Leaders regularly involve people in decision-making processes on how to achieve the organization’s vision. Leaders recognize and reward success. Through these methods, the work can become motivating.

Creating a Culture of LeadershipSome organizations develop their employees into leaders by providing training, challenging goals and objectives along with a wide range of opportunities for new employees as well as seasoned “veterans.”

A solid recruiting, hiring and training process can provide a great start to your dealership’s leadership development program and encourage growth. In order to develop people for higher-level leadership positions, current leaders might make the successes of others more visible to senior management and the dealer. Companies that create a culture of leadership also recognize and reward people who successfully develop other leaders.

If we need more leaders in the increasingly complex and competitive automotive industry, we need our current leaders to develop cultures that foster leadership. Creating a culture of leadership is intrinsically an act of leadership.

Sean WolÞ ngton is the owner of BZResults.com. He can be contacted at 866.802.5753, or by e-mail atswolÞ [email protected].

july 2005

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Page 14: AutoSuccess Jul05

14

Prove It

ChrisHanson

Why is it that some of the easiest things to do are the most overlooked? I think it’s because they are so simple that we

don’t think they would make a very big difference.

Take, for instance, an “evidence manual.” Have you ever noticed how someone can forward an e-mail and it can travel around the world and hundreds of people will take it as fact? Why is that? Because they read it. When it’s in print, it always seems to be fact. Let’s talk about how we can use that to our benefi t. Let’s gather information that we can use to prove what we have said. Information that will put the customer at ease. An evidence manual is a powerful sales tool that must be used every time you talk to a customer.

What should you have in your evidence manual?

ArticlesGather up articles from Motor Trend, Car & Driver, Road & Track, newspaper articles, etc., that talk about your product. MSN has a great Web site, click on Auto and read the ratings and reviews and print them to put in your manual. Then create separate sections for each make and model you sell and put all the articles you can fi nd in each section. Take the time to read every article and as you read, highlight the parts that you want the customer to read. “The most powerful truck on the market...”. Also, make sure and talk about some of the things that the magazine is talking about so when they read one of the articles later, they say, “Look, just like Chris was telling us, this is the most powerful truck on the market.” Always look for new articles to add.

Letters, Thank You Cards and Customer SurveysAnytime you receive a letter or card from a customer put it in your evidence manual. When you have customers that give you a 100 percent on your CSI and write a few lines about you, put it in your evidence manual. I have a bunch of letters and cards I put on my bulletin above my desk and customers are always reading them. They’ll say “That’s my neighbor “or” that’s my relative. I didn’t know they bought a car from you.”

Information about youHere you can put in pictures of you and your family, pets, etc. awards you have received and any community activities you are involved in. A brief bio on yourself is a good idea, too. What do you like to do, and what are you involved in for fun?

When should we use our evidence manual? Anytime the customer says he or she is going to look at a competitive model, fl ip through your manual and show them the facts. Whenever you go out to fi nd a vehicle to pull up for the customer to look at, open the manual to the section for the car at which they are looking and say, “I’m going to fi nd that truck and pull it up for you. Here’s an article that I know you would be interested in.” What about when you are driving the trade-in? Wouldn’t it be nice if they were reading an article that told them they were making a smart decision? Or how about when they are waiting for fi nance and might be a little nervous about their decision and read an article about how this is the best truck on the market.

People are always reading and researching to fi nd the facts. They are swayed by many medias, so take advantage of that. You can either provide it for them or let someone else - its up to you. These articles are the experts so let them tell their story. Make up an evidence manual today and let the experts help you close the sale.

If you want to see what mine looks like, just e-mail me and I’ll send you a video e-mail that shows you how I have it set up.

Chris Hanson with Hibbing Chrysler can be contacted at 800.901.2862, or bye-mail at [email protected].

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Page 15: AutoSuccess Jul05

15

RandyBarone

Optimize Sales ...Just A Click Away

It’s a Saturday afternoon and a couple comes in looking for a 4WD Ford Expedition with leather, 2001 or

newer, with less than 40,000 miles. You don’t have one, but you’ve got a Durango and you know a Tahoe is coming in. Nope, they’re not interested. You lose the sale because they’re ready to buy and you don’t have what they want.

Wouldn’t it be nice to say, “Let me see what we’ve got in the pipeline.” You then type in their specifi cations and ask, “Would you like that in black, beige or silver?”

That’s where the Internet is taking used car wholesaling. The primary reason is greater availability of Internet access at the dealership level, as well as advances in digital photography that allow dealers to receive detailed images of the vehicles that are up for sale.

At any of the cyberlots, you’ll get three to fi ve perspectives. It’s the next best thing to being there. In particular, the auction-supported sites require that sellers have close-ups to disclose damage. Those are technological advances that cause the audience to be more comfortable. Buying on the Internet is a cost-saving, effi cient way to buy cars that have guarantees, arbitration, pictures, and well-described condition reports.

In many ways, the business-to-business used-vehicle market is a tremendous opportunity for dealers who want to leverage technology. Today, dealers are faced with the challenge of listing the inventory in the most optimal sales channel. These channels range from line ads in newspapers to Internet sites and straight lot inventory. There are now software applications that allow subscribers to determine which inventory will produce the greatest profi t if offered for bids online. Such packages allow dealers to determine the amount of profi t that they can expect, based on real-time sales data. These systems also can suggest a listing price to post on the auction site, and dealers can easily manage their listings throughout the auction process. Tracking sales and profi ts is simplifi ed, as

well. Overall, these tools boost reduction of wholesale loss, thereby increasing gross profi t and producing faster inventory turns, enabling the dealer to gain more customers.

A dealer also can research how much the dealership would have received from selling a vehicle versus how much the vehicle would have sold for at a local auction. Dealers are now armed with data that helps them know which vehicles make the most money so they can keep them in stock. The same data alerts the used car manager of vehicles that historically have not performed well in his inventory.

The system especially works for dealers who want to sell their used vehicle inventory online. Cars often can sit for weeks before the next auction, losing money. On the Web, cars generally can be sold in seven to 10 days -- more quickly than the traditional auction process.

The way to maximize the channel is for a dealer to put a couple of computers in the used car department and give associates the access and training required to supply the dealership with optimal inventory every day. Tools now are available that assist dealers in driving intelligent inventory decisions, resulting in optimum profi ts across the dealership sales operations.

Search auction Internet sites when traffi c is slow. The knowledge that a manager gains by researching his or her market is demonstrated through increased turns and better inventory mix at the prices his or her customers demand. Some dealers will bid on cars while doing a walk-around with a customer. With proxy bidding, a buyer can indicate what he is willing to pay, and the system will automatically make his or her bids. This enables a buyer to get the best possible price without exceeding his or her price ceiling on a vehicle. You can’t do that on a lane.

Randy Barone is the executive vice president of sales at American Auto Exchange, Inc. He can be contacted at 800.901.3017, or by e-mail at [email protected].

july 2005

Page 16: AutoSuccess Jul05

16

The Art of the Business Manager

TonyDupaquier

Every customer who walks into a dealership presents the opportunity to make a deal. If the customer is on the right car, then

the right amount of initial investment and the correct structuring will ensure a deal. That is the art of the business manager: to make deals for customers who may not otherwise be approved.

The two major challenges securing a deal with a lender are credit and negative equity. If it were not for these two elements, it would be possible to deliver 80 percent or more of the people who walk into a dealership.

Many customers will have some form of credit challenge. Identify the challenges and then fi nd good explanations for every one of them. Do not rely on the credit score to tell the story; you want the story from the customer.

This leads to the credit interview, which is essential for every business manager to master. There are three primary goals in the credit interview: to fi nd out what happened, what has changed and why it will not happen again. Bad things happen to good people. The story you receive from the customer can make a big difference when talking to the lender. You want this story up front so you can inform the lender. Otherwise, the lender will turn down the deal, and you will have to call back to re-hash it. Get very specifi c when it comes to past due accounts or accounts that have gone bad. If you see collections on the credit bureau, fi nd out if they have been paid and if they have been, that the customer can prove it. The same goes with tax liens and child-support issues. Make sure to make copies of any supporting documentation the customer may have. In some cases, you may have to send the customer to fi nd this documentation. Does the customer have credit references that do not show on the bureau? If so, do a direct check and send documentation to the prospective lender, allowing them to do a direct check, as well.

Verifi cation of all the information on the customer statement is equally important. Every lender has a slightly different way

of scoring customers, so all information needs to be precise. For the customer’s employment history, provide the years and months, and if employed less than fi ve years at the current job, get a minimum of fi ve years of employment history. The same goes for the customer’s residential history. If for some reason the person moves around a lot, you must fi nd out why and if the person stayed in the same job fi eld. Every lender is going to verify employment. With larger businesses and corporations, this verifi cation process can be time consuming. Do some of the legwork for the lender. Call and speak to the HR director, and inform the director of what will transpire. Find out the best time for the lender to call and maybe even coach the director on the questions that will be asked.

Income is another important factor. Even if the lender does not require a verifi cation of the income, it is highly recommended that you provide one for every customer, regardless of the person’s credit. Ask for a paycheck stub, especially from customers who receive an hourly wage. In most cases, customers make more then they realize due to overtime and their specifi c rate of pay. In the event the customer does not have a paycheck or it does not accurately portray the income, look for other avenues. Many of today’s lenders will look at bank statements for customers who are paid in cash or for those who work for tips. However, the customer must have money in the bank for this to be work. Debt to income and payment to income are two major factors lenders look at when considering a deal, and they may also determine if the customer is buying the right vehicle.

Is the customer buying the right vehicle? Some customers attempt to purchase a vehicle that is too expensive, considering the initial investment they are willing to make and the status of their credit. At this point, the business manager has two options: submit the deal and have it turned down or inform the customer on what is realistic and put the deal together. You may need to start the car-buying process all over again with a vehicle-needs analysis to fi nd out what the customer really needs from a vehicle. Lenders will look poorly at a deal if they think the customer’s choice is unrealistic. Sometimes, customers just want a new vehicle but allow

themselves to be up sold by the sales people. Armed with the customer’s information, you may have to suggest a different vehicle.

What is the right car? The best vehicles are current-year models, pre-owned vehicles that the lender will use like an invoice to determine the amount fi nanced. Some lenders will only allow 90 percent of this invoice amount; however, anything is better than standard book values. Also, new vehicles with larger incentives are always good choices. You may have to switch a customer from a pre-owned vehicle to a new vehicle that the lender will accept. Some customers think they need to fi nd a very inexpensive vehicle to receive fi nancing. These inexpensive vehicles may have too many miles on them, or the year model may only allow for short-term fi nancing – raising the payment so high, it blows the payment-to-income ratio, which, in turn, blows the deal.

Based on your experience, the information you received during the credit interview and the loan value to ratio of the deal, you are then able to talk initial investment. Lenders look at the equity in a deal, regardless of the customer’s credit. With credit-challenged customers, the further back of book or invoice you are, the better the chances are of receiving an approval. Even when the sales people tell you the customer has no money to put down, customers generally will put up something when you explain the benefi ts of a cash investment.

Now that you have a story from the customer, you have the customer on the right vehicle and you have secured some form of initial investment, you should be able to structure the deal so you can receive an approval or at least some form of condition. The old fashion “throw it against the wall and see what sticks” works every once and a while; however a good business manager will fi nd a way to put deals together, not just send them in and see what happens.

Tony Dupaquier is the director of F&I training for American Financial & Automotive Services Inc. He can be contacted at 866.856.6754, or by e-mail [email protected].

Page 17: AutoSuccess Jul05

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Page 18: AutoSuccess Jul05

18

BrianAnkneyfs feature solution

Getting and Managing Leads - Success on the Internet

In the nineties it was said that the Internet was going to change the way cars were sold in the United States. Everything was going to be different. That is what the retail automotive industry braced for in the early nineties. Many were afraid and many thought it would not happen. Many today may think that it did not happen, but industry statistics tell a different story.

Dealers have reported that the Internet accounts for 25-35 percent of car sales, also agreeing that the Internet is driving phone-ups to the tune of 30+ percent. This puts the Internet ahead of newspapers, television, direct mail, and radio. For this article the following dealers and providers have agreed to help us see what makes them so successful with leads and the Internet; Ben Freeland, Freeland Luxury Cars, Ralph Perkins, Patomkin Auto GroupDon Graff, Flemington Car and Truck Country Family of DealershipsAnonymous Southeastern Dealer Group

1. How do you determine the value of leads from third-party providers? Do you calculate an ROI?

The only thing that every store agreed on was that calculating an ROI for each provider is important. Ralph Perkins, VP of Sales and Marketing at the Potamkin Auto Group, relies on his lead management system to provide him with daily reports that track what sold and what did not. Each level of management and department uses reports to measure their success daily. Don Graff of Flemington Car and Truck Country Family of Dealerships warned that while monthly statistics are valuable to reward employees and set goals for departments, measurement over a greater period is required to evaluate a lead provider or Internet advertising placement. Graff feels that the market fl uctuates too much month-to-month and uses a six-month measurement to decide

on his providers. Ben Freeland, owner of Freeland Luxury Cars says, “To measure ROI very simply look at the total number of appointments set, number of appointments that show, and number of vehicles sold. Next divide the bill by the number of vehicles sold for the average cost per sale.”

2. What do you look for in a lead provider?

“A lead provider should provide a customer for me to contact, nothing more. I do not want them to contact my customer,” says Perkins.

According to Freeland, ”My ideal lead provider is the one that keeps it simple! Provide me with the number of leads requested fed directly into my CRM system. Allow me to control my settings for mile radius and lead volume. Finally, have quality support personnel that will assist me in maximizing my ROI.” Graff wants his customers to be kept informed; ”I would like to see it made clear to customers that they will be solicited. Some customers are unaware that they will be contacted and think they are signing up to win something.”

3. How does your Internet sales process work?

”First, the customer receives an auto response and a call within 3hrs. The customer will receive 7 or 8 calls in the fi rst week and e-mails with specifi cs about their desired vehicle. We will attempt 20 contacts in the fi rst 30 days”, says Graff.

Perkins feels it is important for all customers to receive the same service, “We give all customers the same great experience, not just Internet customers. Customers have no hoops to jump through to get the Internet price. We don’t shy away from our Internet pricing.”

“We have a dedicated Internet department that handles all of our leads. They are equipped to respond to customer requests instantly and provide them with enough information to set the appointment”, says Freeland who feels a separate Internet department is important.

According to AutoTrader.com’s Chip Perry, “Total Internet immersion seems to be attracting more and more interest around the country. This model has an Internet manager with a staff handling e-mail leads, merchandising online listings and doing careful reporting about what leads come in and what results in sales. Customers coming to the dealer through the Internet are introduced to the fl oor staff for sales and follow-up. The dealership’s entire staff is thoroughly trained in handling Internet customers, in particular their tendency to do research before visiting the store. This approach helps dealers serve all the customers who contact them as well as understand what advertising works best by clearly identifying the customers brought to the store through the Internet.”

Three common themes were apparent in the processes of all those asked; consistency, measurement and training. Dealerships that are successful on the Internet develop process for selling customers and follow these processes consistently. They measure their results and continuously work to improve their processes. All employees are trained to be effective in maximizing results.

4. Has the timeline shortened? Do you think that Internet leads are buying faster now than Þ ve years ago?

According to Freeland, “I think they were always buying faster, the best Internet departments are just now catching up to the customers and increasing their closing rates and sales volume because they are more in

Page 19: AutoSuccess Jul05

19july 2005

tune with what the Internet buyers want, a fast response with service.”

Perkins feels differently, “The timeline has gotten longer. Five years ago there were fewer customers using the Internet, but they were serious and ready to buy. Now there are more and more people that are submitting their information that are in the shopping stage. Accessibility to the Internet is greater now and we see a larger number of fi nancially challenged people as leads. The overall demographic of the Internet lead has changed.”

According to Perry, “We fi nd that nine times out of 10 people will still pick up the phone and call a dealer rather than e-mail them about a car – since what they want to know is if the dealer still has the car. Consumers are using the Internet more than ever to search for a car before buying – 89 percent of people with an Internet connection use the Web this way according to J.D. Power”

An anonymous Southeastern Dealer group feels as though, “ heavier use by immediate shoppers has quickened the process. 30 percent of our deliveries from the Internet take place within the fi rst week. Our average buyer requires only seven contacts to get them in to buy a car.”

5. Have Þ lters improved the quality of leads?

Perkins feels as though fi lters can make or break a deal with a lead provider, “I like fi lters. We have cancelled providers in the past due to junk leads. Filters have greatly improved the quality of leads today.”

Depending on the size of your store and location, fi lter use can vary greatly. “At our larger stores we like to buy all the leads we can get. At our smaller stores we like to fi lter the leads. There is no question that the contact ratio goes up with better fi lters”, says the Anonymous Southeastern Dealer group.

The work and quality of the fi lter has also changed over the last few years. According to Graff, ”Yes, 4 or 5 years ago leads were fi lled with bad information. Nearly 30 percent had some bad information. Today if we get 5 -10 percent with bad information, that’s a lot.”

Freeland feels as though the few bad leads are worth it when it comes to the cost, “It depends on the source of the lead, but in general, Internet leads are strictly a numbers game that should only be measured at the end of the month with the bill divided by the number of sales. A few bad leads should not frustrate dealers when the cost per sale is still much lower than traditional advertising. Plus with Internet leads it is easily measured compared to traditional media.”

6. What types of training do you use to improve your Internet sales?

According to Freeland, “Again we keep it simple. It’s primarily phone skills. Treat every lead as a phone up and provide just enough information to set an appointment. Better appointments = more shows, more shows = more sales.”

“We have a training manager on staff but sometimes it is necessary to bring in outside help. Scripts and e-mail writing can be taught to people that already have the character and phone skills”, says Graff.

Like Graff and Freeland, Perkins feels it important to keep it simple and use the great employees you currently have. “I look for in-house people as a fi rst option and give them additional training myself. They already know our processes. The most important

thing is fi nding the right person.”

7. What has been the greatest obstacle to success on the Internet?

”Finding an Internet sales person that has the ability to understand his daily plan and work it. A different work ethic is required for an Internet sales person,” says Graff.

The anonymous Southeastern Dealer group feels it’s more, “Budget decisions about where to spend money on the Internet, good ROI management, and fi nding the right CRM system are the greatest initial obstacles.”

For Freeland the obstacle was more mental, “Our largest hurdle to overcome was believing that you could close sales via e-mail and over the phone. We provided way too much information. You still need to get the customers into the store and provide them with an exceptional experience.”

8. What gives your store an edge over others on the Internet?

“Our People! It always comes down to good people”, says Freeland.

Perkins feels it is all about consistency, “Dedication to the Internet, not an “Internet person” or a separate department in the corner of the showroom is what’s required. The Internet is a part of each and every department. We have the same process for every customer, Internet or not.”

Graff partly attributes their success to the customer service foundation that has already been laid down. “Our advantage comes from the way we do business. Flemington Car and Truck Country Family of Dealerships has a reputation for great customer service. We carry this reputation on to the Internet. We have a huge customer base that trusts us.”

Please let us know topics you would like for us to interview successful dealers about in the future. You can submit ideas to Brian Ankney at the contact information below.

Brian Ankney is a sales-improvement strategist at AutoSuccess. He can be contacted at 866.318.1360, or by e-mail at [email protected].

Page 20: AutoSuccess Jul05

20

PaulAccinno

Maximize Your Internet SalesIn order to maximize your Internet sales, your ISM must be allowed to focus on his or her primary responsibility, which

is to sell showroom appointments. Most Internet customers have submitted leads to multiple car dealer Web sites and other lead generators. So the dealership that gets to the customer fi rst with the information they requested usually wins. Your ISM must be organized, know their way around a computer, be Internet savvy, and above all, have great phone skills and be a closer. This requires focus.

Leads that are responded to quickly have the highest closing ratios. A Harris Interactive Poll showed that 70 percent of Automotive Internet Users (AIU) that purchased a vehicle did so from a dealer that responded to their Internet request in less than one hour. The study also showed that the longer it takes to respond to a lead, the less likely the customer is to buy from you. In fact, the likelihood of them purchasing from you drops to 18 percent after 36 hours. Which means that 82 percent of them bought from your competition.

Try this for 90 days. Let your ISM do nothing but sell appointments. When the appointment arrives at the dealership, have the ISM greet the customer and for the purpose of continuity, introduce them to a sales person. Then let the sales person take it from there. Make sure the ISM clues the sales person in on all the particulars of the deal so they are knowledgeable. Pay the sales people to close customers and

deliver vehicles and pay the ISM to sell appointments. If your ISM is taking photos of the used cars, consider hiring a third party provider to complete this task. Your ISM should be responsible for the vehicle content on your Web site, but you should delegate the marketing content to your ad agency. You always want your Web site content to leverage your other marketing efforts. The objective here is to give your ISM more time to respond to leads (in less than an hour) and sell more appointments. If an ISM has a 10 percent closing ratio, that usually means he or she is scheduling about 20 percent of the valid leads for appointments and closing 50 percent of those. What if the ISM, only focusing on selling appointments, could double the appointment ratio?

Here are some of the marketing costs associated with running this model: Let’s assume you receive 200 leads a month, half of those come from your Web site and OEM and the other half come from third party lead providers at a cost of $20 per lead. Let’s also assume that 75 percent of those leads are valid leads. The used car photos and window stickers will cost about $15 per unit. You will defi nitely need a Lead Management System (LMS) to run this model properly.

You can’t rely on Outlook to manage this process because there are many tools in the typical LMS that streamline and automate the follow-up process. Using a LMS also cuts down on the time devoted to sending e-mails and allows your ISM to use their primary tool for selling appointments, the phone. Next, consider a Search Engine Optimization (SEO) program to maximize the number of leads you receive from your

Web site. This will improve your closing ratios, since these are your best leads, and cut down on the number of leads you need to purchase from a third party lead provider. So here’s your total estimated cost for the month:

• Third Party Leads $2,000 (100 x $20)• Web site Cost $500• Photos/Window Stickers $750

(50 units x $15)• LMS $250• SEO $150• Total $3,650/month

If your ISM can sell 40 percent of the valid leads an appointment, then you sell 30 units at a cost of $122 (200 x 75 percent x 40 percent x 50 percent) / $3,650, which is less than half your normal advertising cost per vehicle retailed.

Industry experts say that an ISM shouldn’t handle more than 100 leads a month. But that model assumes that the ISM is also doing other tasks and not focusing on just selling appointments. And if you’re thinking, “I don’t get enough leads to have an ISM that only sells appointments;” then buy more leads; don’t give your ISM more jobs to do.

If you’ll allow your ISM to focus on the process of selling more appointments, you’ll sell more cars, your cost per vehicle retailed will go down, and you’ll improve your overall Internet ROI.

Paul Accinno is the preseident and CEO of WorldDealer, Inc. He can be contacted at 866.429.6826, or by e-mail [email protected].

<1

1-5

6-12

13-24

25-36

>36

0% 10% 20% 30% 40% 50% 60% 70%

Source: Harris Interactive

16%

36%

45%

56%

60%

70%

If your ISM can sell 40 percent of the valid leads an appointment, then you sell 30 units at a cost of $122 ... which is less than half your normal advertising cost per vehicle retailed.

Page 21: AutoSuccess Jul05
Page 22: AutoSuccess Jul05

22

Loosen Up,It Keeps Grumbling Down

TomGegax

Your employees are on board the mission train, they’re stoked about the vision and they feel honored and valued. With a little

more effort, you can crank up the culture

and make the place so enjoyable that people wouldn’t dream of working anywhere else. As Herb Kelleher, the pioneering former CEO of Southwest Airlines, put it:

If people come to a place that they regard as fun, entertaining and stimulating, their minds

are turned on. They’re looking for solutions, and they’ll fi nd them.

Start with yourself. Fair or not, your relationships with people under your watch set the tone for the entire staff. My dad and his World War II Army buddies told me, “There were some leaders we’d gladly follow out of a foxhole into battle. But there were others we wanted to shoot in the back.” It’s no different in the corporate foxholes. The commander-in-chief can make every day feel like a slice of heaven or a glimpse of hell.

Crack open the window of your life and connect more deeply with people. Let your guard down. Be accessible. Listen. Every so often, start a meeting by asking everyone to share something interesting going on in their personal life. Or, start with a humorous, self-deprecating story. Ever spill food on yourself at an important business dinner? Make a boneheaded play in a softball game? Lock yourself out of the house in your bathrobe?

Your gentle humor and humility encourage others to follow suit. Build on that. Every so often, organize a potluck lunch or have take-out food delivered. If weather permits, make it a picnic lunch. Breaking bread is a wonderful way to bring people together and strengthen bonds. Before you know it you’re cooking with team chemistry. Filling people’s stomachs is also a good way to show you appreciate great work. Every year, our executive team donned aprons and served lunch to the employees. During huge snowstorms we tried to keep our crews fueled up with pizza while they worked 16-hour days to serve panicked drivers.

Don’t stop there. Sponsor a softball, golf or bowling team. Maybe a volleyball or archery league. Gardening or chess club, anyone? Welcome spouses of employees and former employees—whoever wants in on the fun. Some of these things might spill into company time, but that’s OK. It’s not wasted time. People who sit anonymously in rows of cubicles can get to know their neighbors better in one afternoon at a bowling alley than by exchanging three years’ worth of hallway hellos.

That camaraderie is priceless, especially when leaders also participate. I was a force to be reckoned with on the company basketball team, played in our annual company golf outing, and took on countless ping-pong

Page 23: AutoSuccess Jul05

23july 2005

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challengers determined to beat the boss. By keeping “rank and fi le” diversions like this at arm’s length, management promotes an us-versus-them mentality. If nothing else, show up on the sidelines once in awhile. I had a blast cheering on our softball team with my bleacher buddies.

Want to be a hero to your employees and help them consistently hit their targets? Convert an under-used room into a nap space. It’s a common sense solution—an exhausted employee is an unproductive employee. “The Art of Napping At Work”, by William Anthony, director of the Center for Psychiatric Rehabilitation at Boston University, and his wife, Camille, argues that losing just one hour of sleep a night for a week slashes work productivity. And when American workers feel sleep-deprived, 51 percent say they do less work and 40 percent admit the quality of their work suffers, according to the International Labour Organization (ILO). I know many executives will think on-the-job napping is a bit goofy but the concept is catching on; 16 percent of workers surveyed by ILO were allowed to take naps at work. I expect that number to grow. Employees who take catnaps make fewer mistakes, are more productive, and—here’s the best part—are eternally grateful they work at such an employee-friendly company.

Creating a can’t-wait-to-get-to-work-on-Monday culture not only helps retain people, it can even lure them back once they’ve left. Before a departing employee slipped out the exit door I made sure he saw the WELCOME BACK sign taped to the other side. We thought of former employees as “lifetime alumni,” and invited them back for special events like it was high school homecoming week. We also regularly checked in with them to see how they were getting along (we knew once people had a taste of our culture it was hard to settle for less). If a former employee was happy at his new company, I was happy. But if he felt like a fi sh out of water, I’d jump at the chance to reel him back into our pond.

Once, a larger company offered our director of loss prevention, Eric Randa, a major boost in salary and responsibility. After reviewing the facts, I shook his hand. “I hate to lose you, Eric,” I said, “but you’re obviously making the right decision.” Almost fi ve years later, we had grown from forty stores to one hundred fi fty. I got a wild hair, called Eric, and asked if he’d like to come back, as a vice president, with stock options. “I was fairly content where I was,” recalled Eric, “but the new job hadn’t been nearly as enjoyable. At Tires Plus, I had put in long hours, but I learned a lot and it had been a lot of fun. It didn’t take long to accept Tom’s offer. It was

a breath of fresh air to come back.”

OK, reality check: No matter how much effort you put into making your offi ce a fun, stimulating place, a small pocket of employees are still going to grouse. It’s always left me scratching my head—the happier most people are, the unhappier other people seem to get. But that’s OK. It isn’t possible to please all the people all the time.

Changing your culture is hard, but rewarding, work. There are no quick fi xes. But take heart. Once you begin engaging hearts

and minds with the idea that work can be exciting and enjoyable, the process takes on a life of its own. As Stanford University professor Everett M. Rogers noted: “When approximately 5 percent of a population adopts a new idea, it becomes ‘embedded.’ When it’s accepted by 20 percent of the people, it is unstoppable.”

Tom Gegax served as chairman and CEO of Tires Plus and is the founder of Gegax Management Systems. He can be contacted at 866.210.2832, or by e-mail at [email protected].

continued

Page 24: AutoSuccess Jul05

24

CarolMartin-Ardell

Who�s Under FireConsider following these procedures fi rst if you’re even considering fi ring a staff member:

1. Speak privately to your employee about your concerns regarding his or her performance. Ask questions that will spark conversations, prompt a frank discussion. Stay calm and offer resources, tools or any aids that might get your subordinate on track. Listen carefully for clues about what motivates your employee – and what doesn’t. Pushing the right buttons, knowing how to elicit a positive response, will provide you with the results you want.

2. If positive changes do not occur, give an oral warning to the employee. That alone may be enough to turn around a poor attitude or lagging performance. Provide specifi c quantifi able data – dates, times and precise instances of shortcomings. Disclose your expectations then underscore the consequences if improvements are not seen by an agreed upon – and realistic – date.

3. Document the details of each employee counseling session to protect yourself and minimize the risks of a wrongful discharge claim in case termination becomes the only viable option.

4. If your employee does not take strides to enhance his or her performance on the job, a written warning reiterating your expectations, objectives and the price

for unacceptable behavior is probably necessary. Place a copy of this document in the employee’s fi le.

5. A very short unpaid or paid suspension may be necessary if improvements are not soon evident. This “time out” can give you, as well as the employee, a chance to step back, view the bigger picture, consider past behavior and contemplate future actions.

6. If more time passes and the situation is still unresolved, your only option may be termination. Make sure this move is appropriate and in line with past disciplinary measures. Cover all your bases and do everything you can to eliminate the possibility of your employee fi ling legal action against you or your dealership! Obtain written approval of your own superior and be absolutely certain you have an airtight case.

Be prepared to be seen as “the bad guy,” if the dismissed employee was well liked by peers. Consider planning a departmental lunch, ideally away from the offi ce, to help reestablish broken ties and, perhaps, dissolve any ill will among the remaining staff members. Do what you can to make others see that the decision you made was to help insure long-term success at the dealership.

The best way to avoid the emotional and fi nancial strain of fi ring someone is to hire the right person the fi rst time. There are many tools available to make your hiring decisions much easier. Remember that it’s probably impossible to know too much about the person you might be hiring. By feeling confi dent about your specifi c requirements, knowing your own management tactics then learning all you can about your job candidates, you’ll help ensure that the person you think you’re hiring is also the same person who will come to work everyday.

Find employees who will enhance your team, not bring it down. Remember that the decisions you make today will determine your dealership’s strength in the future.

Carol Martin-Ardell is a senior consultant with the Omnia Group. She can be contacted at 800.601.3216, or by e-mail at [email protected].

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Consider planning a departmental lunch, ideally away from the ofÞ ce, to help reestablish broken ties and, perhaps, dissolve any ill will among the remaining staff members.

Page 25: AutoSuccess Jul05
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26

MarkTewart

The Powerful Sales PersonCustomers don’t buy vehicles, and sales people don’t sell vehicles. Customers buy solutions to problems they can

feel emotionally. Sales people are the conduit that helps customers discover those emotional solutions.

People buy from people. Customers generally do business with people they like and trust. Your customers don’t walk out of your dealership telling you that they bought from you because you are a jerk. Customers can get vehicles anywhere. Most of you are not selling a rare commodity. Therefore the decision criteria of a customer are based upon money, me and machine. However, you are the secret ingredient. You have the power to infl uence the perception of the customer about you, the machine and the money.

A customer will move through three stages of the selling process – Character/Trust, Emotion and Logic. People have to like and trust you, then they allow you to guide them to emotions that eventually combine with logic. Emotion distorts reality. That’s why everyday customers walk out of F&I and tell you that they did not plan to buy a vehicle today.

The number one reason people buy a vehicle is and always will be confi dence. Confi dence

they feel in the money, me and machine that you give them. Therefore the most empowering decision you can ever make as a sales person is accept full responsibility for every sale made or lost.

Once you accept full responsibility for winning and losing and eliminate the easily accepted notion that it’s about price, you become an incredibly powerful, winning sales person. If you allow one excuse for losing into your subconscious it opens the door for a million excuses. Weak sales people raise skinny kids. Eliminate all excuses such as price and watch your sales take off.

If price is the issue, what can you do to infl uence the price or the decision? Practice apples to oranges selling. If everybody else is showing the customer apples, you show them better apples and show them oranges, as well. Always think HFG – Hope for Gain. What is the customer trying to accomplish and how can I apply to their sense of HFG.

How will the fi rst stage of your engagement with the customer set you apart and infl uence the customer? Most customers decide to buy from you in 15 seconds to two minutes. The decision is made about you long before they ever make a decision about price. Try this greeting: “Hi folks, are you out beginning to look and shop around?” What are they going to say, “No we are just looking and

shopping?” Be proactive. Take the objection away up front and make the customer feel at ease while you do it. Nobody else is greeting the customer this way.

Most sales people operate out of the same gene pool. If you do this you eventually become a homogenized, generic sales person. What follows are bad results, lots of price shoppers, low sales, low incomes and eventually a bad case of excuses. Never forget that everything you do makes a difference.

Before any customer leaves, are you and your manager “walking the wheel”? “Walking the wheel” is a phrase I use to remind us to explore all avenues. Bigger car, smaller car, car to SUV, new to used, used to new, demo, longer term, cash back, delay payment, pay off the remaining lease payments on their trade, trade another vehicle, trade two vehicles, etc. How hard do you fi ght for every sale? Persistent = consistent.

Winning at sales is simply a choice. You can choose to win or choose to lose. Once you choose, you become the sales person you have decided to be at the given moment.

Mark Tewart is the president of Tewart Enterprises. He can be contacted at 866.429.6844, or by e-mail at [email protected].

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Page 27: AutoSuccess Jul05

27july 2005

JimAdams

Employee pricing for everyone! Save $12,000 in bonuses and rebates. “It’s the biggest sale ever.” It is hard to turn on

the television, listen to the radio or open a newspaper without being bombarded with the circus that has become today’s automotive market. The truth is, according to Zig Ziglar, a sale is made when the value a customer receives is more than the price the customer pays. Every customer wants and expects a good deal. So what is a good deal? Not what the customer paid but what they feel they paid.

No matter what the market conditions are we still sell cars one at a time. Our customer must have a genuine need or desire for a vehicle and we must build rapport, investigate wants and needs and sell the value of our product. Then, and only then, have we earned the right to ask for the sale. If the customer does not have a desire of ownership, price will rarely close the sale. Regardless of what the factory tells us, our customer will not buy our vehicle just because it’s cheap enough. The vehicle must fi t their wants and needs, as well as their budget. The biggest mistake that sales people make in today’s market is selling the program, i.e. rebates and low interest, instead of the vehicle.

We must remember that our customers purchase based on 80 percent emotion and 20 percent logic. If price sold cars the Ford Aspire would still be the No. 1 selling car in the United States. We have needs and desires and we want our vehicles to fi t those needs. Customer hot buttons like safety, performance, appearance, comfort, economy and dependability are the triggers that help customers make a buying decision. Price is the last decision in a long list that a customer must make before they buy. For example:

� What type of vehicle will best suit their wants and needs. This depends on factors such as size of family, what they will use the vehicle for, etc.

� When to buy. Is the customer trading his or her vehicle for a newer model? Is he or she adding a vehicle for a family member?

� From whom to buy. This is the one over which you, the professional sales person, have the must control.

� Price to pay!

The Professional Sale1. Professional sales people begin the sales process with a great greeting which includes a professional appearance and a positive selling attitude.

2. Professional sales people build rapport with customers by establishing common ground and asking controlled questions that help the sales person select the right vehicle for the customer. Never avoid questions of rebate or special incentive but do not make it the primary focus of your presentation. Remember, we do not sell programs, we sell vehicles.

3. Professional sales people aid in product selection and are product specialists. We sell the sizzle. Show and tell. Make sure that we sell the options that are important to the customer. Even a $10,000 rebate is not important to the customer if the vehicle does not suit their wants and needs.

4. Everybody drives. Professional sales people take every customer on a well thought out product demonstration drive. Professional sales people go with the customer for the fi rst demonstration every time. Vehicles do not sell themselves. We have to be there to demonstrate features, answer questions and ask closing questions.

In today’s circus of factory discounts and rebate programs do not fall into the trap of believing that price alone sells cars. Professional sales people who build rapport, have their customers’ best interests at heart, professionally demonstrate their product and honor their commitments will always be successful no matter what programs the factories are running. Have a great selling day.

Jim Adams is the general manager at Roper Kia in Joplin, MO. He can be contacted at 800.905.0627, or by e-mail at [email protected].

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Page 28: AutoSuccess Jul05

28

Full Price is a Fair Price, Part 2

KirkManzo

Last month we discussed the importance of starting all deals at full asking price to begin each negotiation. Your sales

person will ask his or her customer for a check at the end of the initial presentation of numbers.

“Mr./Mrs. Customer just go ahead and write me a check for $6,097, make it out to Thompson Motors and I will get your paperwork started.”

Then shut up and wait for their response. Realize some will actually surprise you and write the check for $6,097.

Instinctively sales people want to help their customer, so what do they typically ask? “Well, OK. Then how much were you thinking?” Inevitably, the customer responds with the most predictable of numbers: zero!

Instead, always instruct the sales person to ask, “How close can you get to that number? Oh, I see you are going to be a little short. Well how short do you feel you are going to be?” Close and short are your friends. Asking how much during the negotiations is the kiss of death.

In the event your customer still does not respond with a counter-offer, instruct your sales person to “peel the onion.” In other words, remove a little of the original $6,097 in $100 dollar increments. “Mr. Customer, were you thinking more like $5,987?” Wait for a response. “$5,887”?, “$5,787?”

After three to fi ve $100 concessions, most customers will respond with some number, typically $1,000. Why? Well, it’s more than zero, but much less than requested. The customer hopes this will appease the sales person.

The sales person should then repeat the number just offered back to the customer several times using a facial expression that clearly indicates disappointment and disapproval. “A thousand dollars … (wince, grimace) … A thousand dollars, really, that seems low!”

The sales person should allow their comment “that seems low” to sink in with the customer and then respond, “I’m sorry, but I think you’ll have to do better than that.” These words need to be delivered in a soft tone. A harsh or accusatory tone will alienate and offend the customer. Be empathetic, but fi rm.

Next, blame the bank.“Mr. Customer, what if the bank were to ask for $2,000, could you be a little fl exible, could you stretch and do the $2,000?” (Note: Bump the customer $500 to $1,000 over the original amount, remember this is not the only bite you will take from the apple).

If your customer hesitates, follow up your request with these powerful four words: “If you had to … if you had to.” Repeat as necessary to achieve the desired result.

Once your sales person has successfully achieved agreement on the new down payment fi gure, $1,800 for example, the sales person should draw two arrows side by side; one pointing up and the other pointing down. Then explain to the customer that as down payment goes down, it causes the payment to go up. Because of this, 48 months will simply not be an option. They should cross out the 48 months on the original proposal and then circle the higher of the two payments, in this case $597, and ask, “Well, how close can you get to that number?”

Once a payment amount has been established, in this case let’s say the customer offered $450 and the sales person bumped them to $485, they will need to summarize before returning to the sales desk for a second pencil.

“Mr./Mrs. Customer, let me see if I understand. You would like to purchase this new ’05 Silverado with only $1,800 down, and you would like us to try to get your payments down as low as $485 per month. If my manager is even able to do this, he or she will need to be fl exible. What I would like to know is can you be a little fl exible, too?” The sales person cannot leave his or her desk until the customer agrees to be fl exible.

Once the sales person returns to the sales manager’s desk, the manager will set up the numbers for the second pencil. The approach will be to take the customer’s offer and separate the two components: payment offer $485 and down payment offer $1,800. The term will be extended to 60 months and set up as follows. $485 with $ 6,489 down. $586 with $1,800 down

The sales person will present the numbers as follows:

“My manager has two options that he has put together for us. We can do the $485 per month you requested however it appears we would need $6,489 down or you can put the $1,800 down and the payments would work out to be

$598 a month. Which of these two options would be best for you?” Remember, this is a negotiation; some back and forth is normal.

The customer will likely protest to the $6,489 down and say they really wanted the payment around $485 but that is too much down. Suggest going with the $1,800 down and the slightly higher payment. In all likelihood this will not be acceptable. No problem. The sales person should then say, “We will need to start somewhere, so let’s discuss the payments fi rst. Between $485 and $586 surely there must be some sort of middle ground. What middle ground is there?”

It is important that the sales person never suggest splitting the difference. Continue to say, middle ground, middle ground. Eventually the customer will pick something in between the two fi gures. For our discussion, we will use $525.

The sales person should write down the $525 in between the $485 and the $586. Then directly across from the $525 and on the same line to the right and in between the $1,800 and $6,489 draw an oval to balance out the equation. Then say: “Mr. Customer, as I mentioned earlier, payment and down payment affect each other so we will need to balance out these numbers. What do you think it will take to make these numbers balance out?”

Most people will over-estimate. For our discussion we will use $2,800 down. The sales person will then ask the customer: “If my manager is able to get to these fi gures, are you ready to take this vehicle home with you today?” (Note: Your sales person should have already asked the customer to buy the car after the demonstration drive, well before this point in the negotiations).

After securing a signature and commitment, the desk manager will plug in the new fi gures of $525 per month and $2,800 down payment. Now have your computer roll on term. The numbers should reconcile around 66 months. By the way, how much have we discounted the selling price of the car? Precisely. Zero, zilch, nothing, nada, and while this will not be the case every time, it should reconcile seven out of 10 times.

Go make something happen!

Kirk Manzo is the general manager at Ziegler Supersystems. He can be contacted at 800.858.6903, or by e-mail at [email protected].

Page 29: AutoSuccess Jul05
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30

Assessing Your Abilityto Read Body Language

PattiWood

How good are you at reading people? Can you look at people you know and assess their personality? As a body language expert,

I am often asked to read world leaders, politicians and movie stars’ body language. I was recently asked to read the body language of Mayor Williams of Washington, D.C., in still, black and white photos of him. You can read the body language of someone in a photo and have the same accuracy of assessment as seeing someone for two to three minutes on video tape. Reading the still photos of Williams revealed a lot about his personality. Look at the descriptions of what he was doing in the photos then check how accurate your body language read is by reading my assessment of him. The explanation of his posture and his expressions will give you a test of your body reading ability so that you can read your customers and the people you work with on a daily basis with more accuracy.

Photo one.His mouth is shut tightly with the corners of the mouth going downward. His lower lip is jutting out. The corners of his eyes also are pulling downward. He is looking away from the journalist who has a microphone in front of his face. The other arm is angled so the elbow is out and the hand is at the hip. The hand is open and at his hip with the fi ngers splayed out tensely toward the reporter and the other is oddly and tensely cupped so that the thumb is in his pocket and the fi ngers are folded under at the knuckle.

What does this mean?His face is so opening expressive (unusual for a politician) His mouth is shut to keep his negative feelings from coming out. You know it’s negative feelings because his lower lip is

jutting out in a classic expression of defi ance and contempt for what is going on. His eyes are looking up and to his left side, which can indicate that he is trying to create something new to say. This would also show he is not comfortable, he has to make up better things to say.

There is an interesting mix of signals within his hand gestures. The one is spread out in an expressive grasp combined with his negative facial expression make him look as if he wants to grasp or even choke the reporter. His other hand is on his hip, both hands on the hips indicate that something is not right and “I need to defend myself.” Both hands on the hips is a male power posture. We hide our hands to hide our emotions and to suppress what actions we want to do with our hands. I believe he is trying to put his thumbs in his pocket so he does not fully show his defensiveness.

Photo two.In this photo he is wearing what he tends to always wear in public: a bow tie, suit and overly starched white shirt. The shirt is pulled part way up out of his pants and is wrinkled heavily around the waist and up toward the chest. His eyes are closed. The mouth is shut tightly and pulled back with deep facial folds going back around the mouth and chin.

What does this mean?Clothing choices are revealing. Especially when someone is wearing clothing that is not normal for his environment. According to research on clothing choices, the bow tie signals a desire to be seen as unique and mature and sometimes a desire to be seen as a member of the upper or educated classes. I believe that overly starched shirt signals a desire to be seen as formal and creates a facade or mask-like protections for the body. The shirt is pulled up and out and is deeply

wrinkled. This happens when our movements go beyond the restraints of the shirt, starch and tightly tucked-in measures. This shows us how the suit does not match the man, how diffi cult it is to hold that facade. The face is fascinating, the closed eyes perhaps in response to a fl ash, though there is no fl ash halo in the photo. We close our eyes to close out the current situation. The mouth is shut tight and pulled back reinforcing the read that he does not want to be there.

Photo three.He is shrugging his shoulders. The shoulders are raised briefl y at the same time and the lower lip curls down and the palms are open and raised.

What does this mean?This is generally given to show “I don’t know” or “how could I possibly answer that?” The shrug is a defensive posture given when someone feels helpless. The shoulders raise to protect that head from attack. The palms-up gesture also shows vulnerability. Symbolically, he is saying “I do not have the answer in my hands. Look at my hands. See they’re empty.”

Photo four.He has given a speech. He is standing by himself on stage facing the audience. Two fl ags are behind him. His upper body is showing, torso below the lower waist is hidden behind a podium. More of his body is exposed than is normally when you’re standing behind a podium. His hands and arms spread out above the waist with the palms open and hands cupped upward. He has a big smile on his face.

What does this mean?The arms reach out with the palms showing to be hugged, sometimes to receive applause or in response to applause. The fact that he can

31 2

Page 31: AutoSuccess Jul05

www.worlddealer.nete-mail: [email protected] 31july 2005

hold this expansive gesture exposing so much of his body in a large public setting shows confi dence. The smile on the face and the extension of the arms and the upward cupping of the hands lets us know he is enjoying himself and the kudos he is receiving. In fact, the upward cupping of the palms shows he wants to “hold” more applause. If the palms were facing fl at toward the audience, he would be signaling a humble request for the applause to stop. This is the body language of a confi dent man.

Photo Þ veHe is standing with very little weight on his front foot and his arms are behind his back. In fact, his arms are so tightly held behind his back his lower arms are hidden to the elbow.

The shoulders are also pulled tightly back. The mouth is closed tightly, like a closed envelope. The lower lip is up and covering the upper lip at the center. The chin is jutting out and is covered with expressive bumps and wrinkles. The eyes are looking up and away and the outer edges of the eyes are going downward. The head is tilted to side.

What does this mean?He is impatient and is trying to hold himself in check. I read photos from the feet up as the torso is under less conscious control and provides a more accurate assessment. Look how there is very little weight on his front foot. The bend in the back leg indicates it is holding most of the weight. This stance combined with his other signals indicates his

4 5

continued

desire to back out of unpleasant situations. His arms are behind his back, again, showing our emotions in our hands by trying to hide his emotions by hiding his hands. Here, because his arms are held back tightly and so much is hidden, we know he is hiding strong emotions and is not just impatient. The shoulders are also pulled back again, a retreating posture that says, “I want to be out of here.” The tightly pressed-together lips and the lower lip pushed up almost covering the upper lip is a classic method of controlling anger or showing resignation. I see many photos of him in different situations were he has this pressed-lip expression, so I believe it is a characteristic mannerism. (Note: This expression is sometimes done when someone is thinking. Him looking up and away could suggest this meaning, but in the context of the other photos I believe my fi rst read is correct.) I would say after looking at all these photos and not knowing him or his personality from any other source that he often tries to hide his inappropriate displeasure and anger.

How accurate were your assessments? Did you get some insights? Now try fl ipping through a magazine or newspaper and continue testing your ability. The secrets of body language will tell you the true meaning.

Patti Wood is the president of Communication Dynamics. She can be contacted at 800.849.3651, or by e-mail at [email protected].

Page 32: AutoSuccess Jul05

32

MichaelYork

Hi, I�m Pushy and Obnoxious ...Wanna Buy Something

What’s the perception of sales people? What comes to mind when you hear the word, “sales man?” In 1978, I became a sales man. I

know that because it said so on my business card.

It would be years later before I learned to become a selling “performer.” My product was Salad Master cookware, with the same company in which Zig Ziglar set all the sales records he often speaks about (and I certainly did my part to make sure his sales records stayed intact).

That was my fi rst introduction to the world of selling. I should say, that was the fi rst time I was included in that group called “sales people” that I’d heard. Right up until the time I answered that ad for a little extra income each week, I’d never seen myself as being “one of them.”

As I began to learn my new trade, everyone kept talking about becoming a selling “professional.” (They’re still talking about it today.) But the word “professional” simply means you’re PAID to do something, or to appear professional while doing it.

What the best of the best in the selling profession do is perform! Think Hollywood or Las Vegas. This marketplace is all about “The Show!” and the performers who are paid to be in it. That’s what this marketplace and every manager wants from a sales person … a performance.

It’s not acting so much as knowing “you’re on!” and responding with an award-winning performance again today.

What’s the general public’s perception of “sales person”? When I ask that question to live audiences, their “perception of sales people,” here’s the list of answers:

• Pushy.• Obnoxious.• Say anything.• Do anything.• Unprofessional.• Less-than-truthful.

(OK, we can stop now)• Get the idea?

Why is that?Simple answer: We earned that reputation over years and years of doing all those things.

How many managers over the years gave you a book and a business card and said something to the effect of “Now get out there and make somebody mad, don’t take no for an answer, close early and close often, do whatever it takes, but bring me back a SALE!

Oh, so that’s what it takes to make a sale. Fortunately for the marketplace, there’s something called the 80/20 rule. This rule can apply to many things, but in this case we’ll use it to identify the 20 percent of sales people who have committed to becoming “aspiring sales performers.”

Aspiring sales professionals perform (and are paid) at the highest level. Wouldn’t that be a worthy ambition if you’ve chosen selling as a vocation?

If you’re going to be generating revenues for organizations to survive and even prosper, wouldn’t it be great to decide at some point (the sooner the better) that you will do it in an uncommon fashion? Not like the typical list of pushy, obnoxious, say anything, etc.

What would you use to make your list on the uncommon selling performers? How about:

• Honesty.• Integrity.• Commitment.• Continuous Learning.• Powerful Communicator.

What the best of the best in the selling profession do is perform! Think Hollywood or Las Vegas. This marketplace isall about�The Show!�

And that means a commitment to “becoming.”

As a director of sales teams for many years, I used this “what everyone thinks of sales people” example to convey to my group of aspiring sales performers exactly how they’d be thought of when someone answered their phone calls for an appointment, or when they entered an offi ce or someone walked through their door for the fi rst time. They would be in that 80 percentile (at least perceived that way) … just like all those other money-grabbing sales types.

But the good news is that just by being aware of this perception in the marketplace and by doing a few things well, any individual can begin to stand out in the mind of buyers and customers as different! As unique, atypical, unconventional as uncommon!

How do you do it?How can you stand out in a marketplace today of sales-sameness? How do you establish yourself as a professional selling performer? How skilled are you at asking questions that set you apart? How well do you listen? How do you create real value for the customer? How can you position yourself as a resource to them and to the organization?

Welcome to “The Now Economy.” No one cares about how good you used to be. What customers are asking NOW is “How good will you be next week?” Customers are asking many of the same questions they’ve always asked. But they’re not settling for the same old answers. How are you coming up with new answers to now questions, for your organization and for your customers?

Want my short list of 10 things you can do now to “Become Uncommon” as a selling performer? Send an e-mail to the address below and ask for the uncommon list.

Lights, camera, action!You’re on.

Michael York is an author and professional speaker. He can be contacted at 800.668.5015, or by e-mail [email protected], or visit www.MichaelYork.com.

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ScottJoseph

How to Attract Quality TrafÞ cIf you had hundreds of people in your showroom, what would happen? The extra people would generate a sense of

excitement, for one. They would also create a sense of immediacy for people who were hot prospects–the prospects would want to claim the car that they wanted immediately, and avoid losing it to another person. They may even provide social proof that the dealership is offering incredible deals. Why else would all those people be there? Most dealers know that this is potentially the limit to the usefulness of a huge number of people in the showroom.

So, how do we defi ne that illusive “quality traffi c” that everyone talks about? Most dealers defi ne it as people who are genuine in their interest to purchase a vehicle (a buyer), and traffi c they can get fi nanced. Almost all dealers do not want their store fl ooded with “gift seekers.” So, the only question is how to get that quality traffi c in the door. Direct mail can be a remarkably effective tool in driving this type of traffi c – as long as it is done well!

First, let me say that general advertising is fi ne, and name recognition is very important in business, yet this is not what direct mail is for. Leave the top-of-the-mind-awareness campaigns to TV, radio, and the newspaper. Direct mail must carry a specifi c, powerful offer to the correct audience. Think of it as a motivating tool–it must elicit an emotional or logical response, and immediately move the customer to act.

So, how is this accomplished? First, the offer must be genuine and unique. What you are offering must be valid in the eyes of the consumer, but it must be remarkable enough to attract their attention. This will involve the consumer logically. If the offer is too ordinary, the consumer will dismiss it. However, if the offer is too incredible, the consumer may dismiss it as hype.

Similarly, the offer must appeal to the consumer’s emotions. Generally, this means appealing to the customer’s need to feel important, fear of loss or exclusion,

and appealing to their sense of pride and privilege, while keeping them in their comfort zone.

There are several simple techniques that you can easily use in creating and organizing your promotional pieces that will improve not only the amount of traffi c that you see in your showroom, but will also guarantee you higher-quality traffi c, while drastically reducing all those gift seekers.

• If you are using a giveaway or free gift, bury it more than half way down in the letter. If the consumer has already read four or fi ve paragraphs in the letter about buying a car, they are genuinely interested in purchasing. A gift or giveaway at that point will encourage someone with interest into coming into the showroom, but won’t advertise to gift seekers.

• Create a sense of urgency for the consumer to attend the event by limiting the promotion to only a few hours. This suggests the possibility of exclusion to the customer–they may be left out if they do not make plans to attend! Continue this exclusive atmosphere by stating that only a select few people have been chosen for the event. This feeds the customer’s need to perceive themselves as important, receiving deals that the general public can’t get.

• Comfort your customer by ensuring that their purchase will be easy. The lowest prices will be offered, and no diffi cult, uncomfortable negotiation will be required. Make the experience appear

painless and simple, and keep the reader in their comfort zone!

• Personalize every letter with the customer’s name. The easiest and quickest way to establish a connection with someone is to refer to them by name.

• Explain why this event is being held, and why the customer should expect a genuinely good deal on a vehicle.

• By having an outside company host the event, it disassociates your dealership from having a sale.

• Consider an RSVP, which will ensure early calls to the dealership from genuinely interested, motivated customers by offering them another high-quality gift. Dealers frequently sell vehicles before the event even begins with the inclusion of an RSVP.

• Don’t overwhelm your audience with different options as to what the mailer is about. Give them a main offer, give them one or two more reasons to come into the dealership, and then stop.

Finally, make sure your offer is aligned with your list. Once your offer is solid, then consider the type of person that would respond to such a mailing. If you are trying to increase your secondary fi nancing sales, target people with sub-prime credit scores. If you need to reduce your trade-in inventory, target used vehicle buyers. If you are overstocked on minivans, target families with kids.

Utilize all these tips with your next direct mail piece, and you can guarantee a higher quality of traffi c in your showroom. Remember–you don’t need traffi c in your showroom. You need buyers in your showroom.

Next month we’ll discuss “How To Increase Showroom Traffi c During Your Slowest Days of the Week!”

Scott Joseph is the president of J&L Marketing Inc. He can be contacted at 866.429.6846, or by e-mail at [email protected].

Utilize all these tips with your next direct mail piece, and you can guarantee a higher quality of trafÞ c in your showroom. Remember�you don�t need trafÞ c in your showroom. You need buyers in your showroom.

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