AutoSuccess Jun03

.biz.biz.biz

June 2003

Mark Strong

Introducing the FirstCustomer Management System

Mark Strong


United We StandUnited We Stand

People Still Love to Negotiate

A Successful AutomotiveProfessional: The Daily Schedule

Emulating Success

How to Become a Successful Negotiator

People Still Love to Negotiate


Emulating Success

How to Become a Successful Negotiator

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AutoSuccess Magazine is published monthly at 756 South First Street, Suite 202, Louisville, Kentucky, 40202; 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, 756 South First Street, Suite 202, Louisville, Kentucky 40202.

People Still Love to Negotiate Mark Tewart How to Become a Successful Negotiator Joe Verde A Successful Automotive Professional: The Daily Schedule Kim Langham Dealership’s Image: Its Effects on Recruiting Terry L. Isaac Choosing the Right Showroom Traffi c and CRM Solution Robert C. Gruen How to Clone Your Best People Pam Holloway Emulating Success Timothy Gilbert What You Need in the Detail Department Kevin Farrell Introducing the First Customer Management System Mark Strong Tool Reimbursement Programs: They Can Help Your Dealership Thomas Lower II Double & Triple Your Output Using Your Time Wisely Brian Tracy Sales From the Internet: Why Doesn’t My Website Work, Part 3 Dennis McDonough Call to Action: Create Customer Demand Joe Courrege Best Practice #3 & #4: Knowledge is Power Jay Betz Experienced or Inexperienced - That is the Question Glen Crawford If You Need Service Solutions, Ask a Pro Don Reed Prepaid Maintenance Contracts: Build Loyalty, Customer Satisfaction and Profi tability Dan McNellis Presentation is Everything David Thomas Overcoming Objections Tom Joseph What a Manager Does Fran Taylor

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autosuccess.biz4

Mark TewartBy Mark Tewart

People Still Love to NegotiateMany times people say they don’t like to negotiate; yet, they still shop around and never pay full MSRP.

Most people act in their own best interest. And most people who say they don’t like negotiating, actually still want to.

There are three things you should always listen to in this business:

1. What people say.2. What people are trying to say.3. What they really mean.

Often, what people are saying is they ‘hate’ to negotiate. What people are trying to say is they could do without the way auto dealers negotiate and what they really mean is they don’t want to make a mistake.

When people say they don’t like to negotiate, they are trying to say they don’t like the feelings of manipulation that occur when auto dealers overuse

the ‘higher authority principle’ of negotiating. In other words, they dislike an improperly used desk system. You can still use a desk system, but you can decrease the back and forth, and keep the customer from feeling manipulated.

The fi rst step is to have a written process that everyone understands. The second step is to make the process the same for each manager and each deal every time. The third step is to train your sales people how to negotiate, handle objections and assist the buyer to fi nalize a buying decision. A written, detailed negotiating process that all sales people and managers understand is essential. Many dealerships seem to operate by the seat of their pants when dealing with the negotiating process. All proposals should be started in the same fashion. Although each deal can vary differently as you begin to negotiate, they should all start the same way to eliminate emotional, bad decisions. Having a precise, written and clearly understood

process can eliminate different managers from working proposals in completely different directions that confuse sales people. Sales people should know how to handle any and all objections, verbally and written, without having to think or blink.

Sales people often give a proposal and when a customer objects, their fi rst reply is, “Mr. Customer, what fi gures where you thinking?” Unfortunately, it may be the worst thing that could be said to a customer. Asking a customer what they are thinking without verifying and validating why you asked for what you proposed, will bring an uneasy feeling to the buyer and usually result in one of two answers, both of which aren’t good. The buyer will usually respond with a low-ball offer or say, “You’re the sales person, you tell me.” In this example, a sales person has violated simple rules of negotiating by asking the customer to set the bottom parameter of the negotiations. This usually will create a shopper from a potential buyer, because they can no longer have confi dence that they have reached their best and lowest possible deal. Confi dence creates the feeling of ‘hope for gain’ and eliminates the emotional fear of making a mistake.

When a customer asks for a lower price, the sales person must validate the MSRP by explaining the value pricing policy. “Mr. Customer, the vehicles are value priced today, which means they have a much smaller and more reasonable markup than in the past, to eliminate the back and forth and bring a more realistic pricing value to the customer.” If the customer persists for discounts, you can offer the potential of an additional percentage discount on the optional equipment of the vehicle. This validates your MSRP proposal and allows the customer to have feelings of victory by gaining a concession while establishing the bottom parameter of negotiations.

All customers are looking to satisfy certain emotions. Knowing how to professionally negotiate can satisfy all the emotions a customer desires and eliminate the negative feelings of manipulation that are prevalent when many customers leave a dealership after a negotiating process.

Mark Tewart is the President of Tewart Enterprises. He can be contacted at 888.283.9278, or by email at [email protected].

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6 autosuccess.biz

Joe VerdeBy Joe Verde

How To BecomeA Successful Negotiator


Negotiation is part of the entire selling process … it is not just the fi nal step.

First, you need to understand that negotiation is a process, not a step. One big problem with negotiation (last step) is that almost every dealership does this step differently than the dealership next door or across town.

Negotiation has been around since the Stone Age and has always been a part of the buying and selling process. Some people wouldn’t agree with that statement today, though, if they’re in a one-price dealership that really doesn’t think they negotiate anything.

Since ‘negotiate’ means ‘to come to terms’ … that means it applies to everything in the selling process, not just the price. The negotiation can be about price or the payments or what you’re paying for their trade, and it’s certainly about value. Other things that are negotiated: price vs. value … value to me vs. my payment … value of my trade vs. what I thought it was worth … value of buying from this dealership today … value of buying from you instead of the sales person down the street, and much more.

In fact, almost every part of the sales process is a minor negotiation within itself. Even the fi rst two minutes you’re with a customer is a negotiation, because you’re trying to come to terms on you being the sales person they want to deal with on this $25,000 purchase. To do that, you have to get them to like you, trust you and feel comfortable working with you, and that’s what the fi rst two steps of selling are designed to accomplish … if you do it right. On the other hand, if you dress like the clerk in a hardware store, casually swagger towards the prospect with your hands in your pockets, your sunglasses on and pop a greeting like, “Can I help you?”… you’ve just lost this step of the negotiation, because you did not come to the terms required in creating an effective fi rst impression that is critical to your sale.

Successful negotiators have learned that to negotiate and win, you have to present

a solid case in every area of selling (the ‘Basics’) and when you get to the fi nal steps regarding price, payments, etc., you really need to have developed a strong case as to why accepting your offer (price/terms) would benefi t them more than you.

That’s why Ben Franklin, America’s fi rst self-made millionaire, said that to be successful in a negotiation, you have to cover what you’re offering (the feature) and give the other party the advantages and benefi ts of doing things your way and that you have to create a win/win for both your dealership and the customer.

Some common mistakes sales people and managers make in negotiating.

Problem:You start negotiating too soon.Price negotiation begins as soon as the fi rst dollar fi gure hits the conversation. So, answer this, should you start negotiating price, trades, rates, payments, terms…

before you build the value in owning the product – or – after you build the value of owning the product, from you / your dealership?

You should wait until after the value is established to talk about anything that has to do with money. But talking price fi rst is what almost every sales person does on the lot before any value is established, simply because the customer asked about the price. Sales people don’t know how to respond to price questions and objections to effectively bypass them, and that means the negotiation has begun too soon…and that means you lose sales more often that you make them. Your current score: win one or two, lose six or seven.

Negotiating before the value is established is a straight road to no sale. That’s why of the eight out of ten customers who specifi cally came to buy and will buy … the average sales person ends up with only one or two sales at the most of those eight deliveries they could have had.

What are the errors? One is confusing ‘qualifying’ with ‘investigating’. Your sales and fi nance managers and the banks

qualify your customers once you have them committed to owning the vehicle. Your only job in sales is to ‘investigate’ to fi nd their driving wants and needs so you can make a value building presentation.

In case you weren’t aware, you’ve begun your negotiation when you ask or say...

• How much did you want to spend?• What’s your budget?• What kind of payments do you want?• We can save you hundreds...• What do you want for your trade?• How much can you put down?• We’re asking...or...we’re dealing.• The price is negotiable on this...• Don’t worry, we never missed a deal because of price.

My manager just said fi nd a buyer, and we’ll make you a deal you can’t refuse.

Worse yet, the person who sets the fi rst fi gures has the advantage in the negotiation. That’s why you can’t ask, “What do you want to spend?” They give you a fi gure that’s unrealistically low (advantage to the customer), and now you’re on the defensive.

The solution: Learn howto bypass price and build value Þ rst.You can’t build value and talk price at the same time. And to avoid price, so you can work on value, you have to learn to bypass all price conversations so you can spend your time focusing on the features, advantages and benefi ts to the customer. Once you learn how, bypassing all price questions is so simple, so effective and so accepted by the customer, you won’t believe you wasted all those years and all those lost sales trying to sell ‘price’ fi rst.

Problem: Sales people don�t listen.Your customers will and, in fact, do tell you everything you need to know to not only sell them the vehicle, but to also negotiate a successful settlement for you and for them – if you’d just listen.

We talk about investigating before you make a presentation so you know what to cover in your presentation. But that’s just part of the reason you continually investigate. The other reason is because

continued on page 29

autosuccess.biz8

Kim LanghamBy Kim Langham


Kim Langham is the top sales person at Jim Schmidt Chevrolet. She was #1 in volume sales in the Toledo zone

last year. Kim averages 30 cars a month and has a CSI rating of 3.92. She works mainly on referrals and repeats alone and only takes one or two (at most) fresh ups a month. She has been in the business for 12 years, and said that it only takes about four years and hard work to become established. Kim is an outstanding sales person with the knowledge it takes to become successful.

In the grand scheme of being a successful automotive professional, organization is everything. I have a daily planner, which is a must for all professional sales people. I write down all my phone calls, appointments, prospects and keep

a wish list in my planner. I also track how many cars that I have sold and how much money I have made; this keeps me focused; I know where I am and where I need to be at the end of each month. Then, if there is a slow time, I look back at my old planners; I might see a name that relates to a sale or rebate we have, and that gives me an idea for a sale. Many times, this results in sales that I would have never even thought of. If I didn’t use my daily planner, I guarantee that I wouldn’t sell half as many cars as I do. I go through my planner all of the time.

The fi rst four or fi ve years of my career I worked 60 to 65 hours a week, bell to bell. Now, I get to work around 9:15 and work about 50 hours per week. I get up early in the morning work out and take care of my personal business. This way when I get to work, I have nothing to do or worry about other than work.


I know exactly what I am going to do when I get there, and I am constantly doing proactive things.

When you are a sales person, it is obvious that things will change during the course of your day. A problem may arise that needs to be addressed immediately; you may have a walk-in, etc. However, it is still extremely important to have a plan for your day. The fi rst thing that I do when I get to work is check my phone messages and my delivery schedule. I then go to cleanup and check to make sure there are no problems and that everything is ready for delivery. I gas my cars (if they need it) and get them completely ready. After that, I go with the fl ow. If I have down time, I’m sending thank you and birthday cards, I’m making phone calls, and I’m looking through my planner to see if there is anyone that I can sell a car to. I go to work to work. I am not going to waste my time and not make any money. Sitting and talking with co-workers is not an option. It looks bad and doesn’t help your sales. If you want to sit with a customer and talk that isn’t a problem, it is proactive and could help in having repeats and referrals.

I handle my customers as they come in during the day. If there are four of them in at a time, I work them all. I never let anyone sit. There will be days that you don’t sit down for six hours or more, but that is how you sell cars. One of the most important things to remember about your customers is, they are, truly, always right. Even if my customer seems to be saying something off the wall or incorrect, if it is an issue for them, then it is an issue for me. Again, this is another way to create a customer for life.

If you work hard, don’t waste time and treat your customer’s right, you will increase your sales dramatically. Having a daily planner is imperative, like I said, if I didn’t use mine, my sales wouldn’t be nearly what they are. Every professional sales person needs a plan. Remember, all of the truly successful sales people are doing the same things.

Kim Langham is a Sales Associate at Jim Schmidt Chevrolet. She can be contacted at 419.542.7731, or by email at [email protected].

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9june 2003

Terry L. IsaacBy Terry L. Isaac

Dealership’s Image:Its Effects on Recruiting

It is a known fact that some customers have a negative image of dealerships. This could stem

from past buying experiences. We are continuously working on improving our image with the customer. We do this by creating new showrooms with less intimidating settings such as: changing manager towers to offi ces, opening fl oors with tables instead of stall type offi ces, even putting in fi replaces, all in the effort to make the customer more comfortable. A comfortable customer is a workable customer.

However, we also have to take into consideration the image we have with job seekers. Remember, the customer we sell today, could also be the employee we try to recruit tomorrow. Most people in the automotive business got into it because they didn’t get the job they wanted or are using it to ‘hold them over’ until another opportunity opens up for them. There are not too many people who grow up telling their parents, “I want to be a car sales person.” Of every class at our dealership, at least 90 percent of them say that someone has said something negative about the career that they have chosen. There have been several surveys done on this profession, with car sales people at the bottom of the list of careers.

Sales people have to overcome the negative image customers have of them, it is no different with recruiting. Do you ever wonder why your dealership is not being considered by college graduates or talented sales professionals? The automotive industry offers some of the best paying jobs in the country, and yet is still not looked at as a good opportunity. When you look at how much the economy depends on the automotive industry to fuel economic growth, the fact is, as the automotive industry goes, so goes the economy. Think about it this way, if you don’t move the vehicles out of the showrooms, the orders stop and the manufacturers slow down to a crawl.

It takes a well-skilled professional sales force in today’s competitive market to have a successful dealership. In order to achieve this goal, you have to start with

top talent. Recruits now want to make this business their career. Ways to overcome the negative image new recruits have of the automotive industry will require change in the way you advertise for employees. The newspaper will only catch the eye of the average or less than average. Job fairs are a good way to sell the job to top recruits. Yes, sell them. It is a sales job.

When you sell a vehicle the sale only takes place when you are face-to-face. During this time you sell yourself, the features and benefi ts, and why they should do business with your dealership. In the process, you have to overcome the negative image they may have of you and your dealership. There are a lot of similarities in recruiting top talent; you have to sell them on yourself, show how much you love this business and what a great opportunity it is for them. At a job fair, make sure to show them the benefi ts of being in this


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profession. Have success stories of people who have achieved great success with your dealership. Offer training (without offering paid training most people do not consider this business). Part of the negative image is that we don’t offer professional training and that we’ll hire anybody out there (which is true of a lot of dealerships today). Send your top, most professional person in your sales department, because tens will attract tens, and twos will attract twos. If you take a two and train them, the most you will have is a four. You need tens. Overcoming your image is a constant challenge; you will have to endure as you move into the future. Your efforts will improve your image and your importance to the automotive industry.

Terry L. Isaac is the Corporate Sales Trainer for the Neil Huffman Auto Group. He can be contacted by email at [email protected].

autosuccess.biz10

Robert C. GruenBy Robert C. Gruen

Choosing the Right ShowroomTraffi c and CRM Solution

Who’s in the driver’s seat at your dealership, m a n a g e m e n t , sales people, customers? While

on the surface it may appear that they would steer the dealership in different directions, their respective demands can be met by implementing the right showroom traffi c, customer relationship and lead management system.

The right system for your dealership will prove to be a money-making tool for your sales people and the dealership. How do you fi nd the system that will give you the management tools necessary to manage your sales people while allowing them to embrace the objective of your processes? How do you fi nd a system that will not only support your unique processes, but also require accountability for compliance with those processes?

In the fast-paced, ever-changing automobile marketplace, dealers need to capture every sales opportunity. They need a system that embraces their unique sales processes and requires accountability from managers and sales people to help keep customers coming back. Avoid the mistakes of others and consider the points in the following checklist when shopping for the right showroom traffi c, customer relationship and lead management system for your dealership:

Employee buy-in.Involve management and sales people in the shopping process from the onset. Give them a sense of ownership in a system they will be using to help run the store and generate more sales.

A user-friendly interface and maintenance-free operation is essential. Your sales people should not need computer experience to effectively use the system.

Customization. Consider the current successful processes you have in place at your store. Whatever is working well needs to be integrated seamlessly into your new automated system. Whatever’s not working needs to be reviewed and discussed with your potential vendor. The system you

choose should be customized to work with the successful processes and business rules you have in place.

The system should incorporate your customized forms and worksheets, which add to the professionalism and uniqueness of your store.

Customized lead follow-ups specifi c to each prospect are essential. Few prospects respond to generic e-mails and letters.

Training and support.Your vendor should provide in-store startup and ongoing training. This ongoing training will ensure your staff’s continual use of the system.

Free product updates and enhancements should be included as part of any software maintenance fee.

The vendor should offer technical support 24 hours a day, 7 days a week. There will come a weekend or evening when everything will appear to go wrong. Give yourself peace of mind knowing that support is always available.

Integration.The system should integrate and function with other solution providers currently in your dealership.

The system should use your existing PCs and networks—adding proprietary hardware is ineffi cient.

Clarity and accountability.Reports and functions should allow your management staff to quickly identify areas of weakness so that they can be rectifi ed in real time. You cannot manage what you cannot measure.

The system should track all in-store e-mail, phone-up and follow-up activities on one customer screen. A real-time desk log with desking functionality is a must for managers.

Reliability.Check a vendor’s references—talk to dealers and staff in management and sales. Don’t simply use a few select references. Request a complete customer list.

Results ofchoosing the right system.Improved opportunities–Increases of over 250 percent in logged, in-store ups are not uncommon.

Improved lease retention and sales–Dealers have experienced lease retention and sales volume increases of up to 30 percent. The chart below is an example of what happened to a dealership after successfully implementing a showroom traffi c and CRM solution in their store. They became the largest growth dealership in their area during 2001 by retaining more prospects and lease customers.

Improved CSI (Customer Satisfaction Index)–Tracking sales associates’ and managers’ follow-ups through the phone system has shown a two-fold increase in CSI. If you can validate that calls are actually being made, you can guarantee improvement in CSI.

Carefully consider the points in the above checklist before choosing a showroom traffi c, customer relationship and lead management system. Doing this will help ensure that you achieve accountability for your entire sales, prospecting, trade-cycle and owner follow-up processes. This, in turn, will guarantee that you sell more cars.

Robert C. Gruen is the President & CEO of The Higher Gear Group, Inc. He can be contacted at 847.843.6800, or by email at [email protected].

Graph 1: Logged In-store Ups

Graph 2: Sales Volume Growth

Note Increased Sales

Volume after CRM

Installation

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june 2003

autosuccess.biz12

How to Clone Your Best People

Pam HollowayBy Pam Holloway

M o d e r a t e l y successful business owners and managers know who their top performers are. Highly

successful owners and managers have learned how to clone those top performers.

Whether it’s sales people, offi ce staff or service technicians, did you ever say, “If only I had more people like Bob, the entire department would operate in the black.” And, chances are that’s correct. The question is, exactly how can you clone your best people? How can you add more black ink to your bottom line by hiring better people?

You have two basic choices:

1. high-tech and expensive2. low-tech and affordable

You most likely want low-tech and affordable. This means you’ll take more of a hands-on approach.

First, identify your top performers (in a specifi c job). Take sales as an example.

Second, recognize how your top sales performers do what they do. In particular, you look for the common qualities and competencies among your star sales people.

Third, build a profi le of those qualities and competencies. You can use a few conversational questions to get key information from top performers. Say you discover that your top sales people possess fi ve common qualities and competencies:

Proactive – tends toward direct action rather than thinking about things.

Persuasive – good at building rapport, leading, infl uencing.

Competitive – invigorated by competition, likes to win.

Positive – always on the lookout for the positive in any situation.

Social – invigorated by social interaction.

Now that you have this information, you have a head start on what to look for when you begin to interview new sales people. You simply look for people with those specifi c qualities.

The challenging part.How do you identify the common traits? That’s the challenging part, and it requires a tool. Again, the choice is yours. You can spend literally millions and get a highly effective, high-tech tool. Or, you can spend mere thousands and get a highly effective, low-tech tool. What makes this so challenging is that there are a lot of choices. You probably already know about the many variations of personality tests and behavioral assessments. Chances are, you’ve also discovered lots of variation in the quality and validity of those personality tools.

To make matters worse, most assessment processes tend to employ tunnel-vision - they focus on assessing the applicant within a vacuum. They don’t take time to understand the job and the success criteria. It is common sense to know what you’re looking for before you start looking. Unless your tool can help you address the job and success within your culture, you could easily end up with an excellent performer who hates showing up for work.

In addition, if you’re not careful, you could easily end up assessing all the wrong things, and not even know it. You could chew up a lot of time and expense and get very little return on your investment. Be cautious when selecting the tool. Unless you employ 30,000 people, keep it simple and low-tech.

A perfectly logical solution.One tool that contains everything you probably want (low-tech, affordable, highly effective) is the language and behavior (LAB) profi le. LAB profi ling is based on the scientifi cally valid concept that people’s language gives you a direct link to their behavior. If you listen carefully to the words someone uses, you can understand how his/her mind works. Here’s how it would work for you. If you teach your sales people to follow a specifi c sales process, you absolutely

need to hire people who naturally and automatically embrace procedures. You need to hire people who will not vary from that procedure. But, if you know what to listen for, you’ll recognize it in the language when your applicant talks.

Here’s how to use the LAB profi le to create a profi le. Interview the top performers in a specifi c job, asking eight to ten conversational questions that enable you to determine their values and how their minds work. What you actually identify is called a ‘mental fi lter confi guration’. That confi guration becomes a template or map to identify your next superstars. Then, use those same eight to ten questions to interview job candidates. You can immediately see how closely a candidate’s mental fi lter confi guration matches those of your top performers. The closer they are to the template, the better they will perform. The farther they are from the template, the more money they will cost you.

It’s a low-tech, practical and amazingly effective approach. The important thing is not so much what tool you use just that you look at the characteristics of star performers and use those as your guide for hiring.

Use the right language toattract exactly the people you want.Once you identify the specifi c characteristics you’re looking for in a candidate, you can then use the appropriate language in your recruiting ads to attract more of the people who fi t the profi le. For example, if you know that your best sales people are competitive, you might include language like “Do you want to be the top sales person in your region?” or “Are you driven to win?” If you want to attract a person who is proactive, you would use proactive language, in other words, short, active sentences. For example: “Want to take control?” “Want to get the job done?” “Like to Win?”

Pam Holloway is the Co-founder and CEO of AboutPeople Training and Consulting Firm. She can be contacted by email at [email protected].


autosuccess.biz14

Timothy GilbertBy Timothy Gilbertsales and training solution

Emulating SuccessOn most any sales force there will, almost always, be those sales people that sell less than the average, those

that sell just the average and those that excel beyond the average. Interestingly, most sales people fall into the ‘average’ category, probably because poor sales people leave the business and star sales people are rare. Many times sales people just can’t get over that ten-unit hump. They work hard, demo every customer yet still can’t crack that barrier. If you are in this category, don’t let it ruin the business for you. Don’t pack up and quit. You can get over the hump.

In order to achieve this you have to change your attitude about selling. Here are some of the negative attitudes about selling:

• All customers have built-in resistance to car sales people;• Management tries to fi nd ways to nix a sale and sales people have to work extra hard just to convince management to keep a deal;• Those sales people that sell so many units are getting help from management;• I’m never going to get any better at selling;• I could sell more units if management would just do a better job of advertising the products; or-Too many of the ups that I get are just deadbeats who can’t qualify for a loan; they are ruining my chances to sell more cars.

Do any of these sound familiar? Most are just rationalizations or blame-shifters. Average or poor sales people tend to think that it’s the customer’s fault or management’s fault. It certainly cannot be their fault. The truth is that when someone falls into the trap of believing one or more of these excuses, they stop their chances at becoming a real success.

The reasons why sales people develop these negative attitudes are that they have seen them happen. It’s true, some customers resist a sales pitch, management has restructured bad deals, sales people do get assistance from management (that’s what they are there for), sometimes sales people lose deals that they felt they should have made, and many times customers do not qualify for the car loan. But those situations do not always happen. Because they have seen it and probably heard others talking about them, they begin to believe them.

Instead of listening to these negative career breakers, try the following things:

• Talk to successful sales professionals. Find out what made them successful - and copy them. If they can be successful so can you.• Stop taking negative attitudes to the sales fl oor; your customers will see them and respond negatively to them. Instead, take positive, successful ones when you greet the next customer.

People that want to be successful emulate those that are already

successful. That’s how you learn to do a task you have never tried before. If you model great and successful people you can learn their techniques and attitudes for success; and take those successful ideas back with you. Make sure that the ideas are realistic for you. Set goals for yourself that are aggressive but achievable, and then build on them. Create a new positive attitude for yourself and your selling techniques. Use new, powerful and positive ideas to sell your customers. Build up a language of positive actions and ideas – replace the, “It can’t be done,” with “I’ve seen it done, and I can do it too.”

Another key is to reinforce success in the minds of customers as well. Live their emotions with them. Remember, how excited you were when you bought a new car. Their new car is exciting to them too. Be excited for them, as if you were buying your dream car. Reliving the excitement in your mind helps you relate to the customer and plants a seed of excitement in their minds as well. A successful and stimulating purchase experience will lead to future sales. Success builds on success.

Key points to remember:

1. Reinforce only positive habits and ideas. Stop believing in mediocrity or that others have control of your destiny.2. Find someone who has been successful and emulate them. Take their ideas and techniques for success and use them to help achieve your own success.3. Find a good fi t for you. Some people may not be perfect models for you.4. Build up a language of success to replace the mental images of rationalization and limitation.5. Live the sale as if it were your own; be excited for the customer. 6. Plant the seeds of success in the customer’s mind as well. Success builds on success.

Timothy Gilbert is an Associate Professor and Chairman of the Automotive Marketing Department at Northwood University Florida Campus. He can be contacted at 561.478.5527, or by email at [email protected].

1315june 2003

marketing solution Kevin FarrellBy Kevin Farrell

What You Needin the Detail Department

There are many new and interesting products and equipment out now that exhibitors have to sell. Even in the

detailing fi eld there are fancy ‘gadgets’ and ‘gizmos’ that may seem to make life easier. Some companies will even claim that the fancy equipment will improve a detailer’s skill. Here is the straight scoop on what you may need and how your shop should be set up to ensure your money is well spent.

Shop size.Having enough room to work is one of the most important things to consider when building or setting up your detail area. A good rule of thumb is to have each bay at least 15 feet wide and 25 feet deep. A detailer needs to be able to fully open up the doors on each side of the vehicle and still be able to pass by without bumping into the wall. This allows for a vacuum or carpet extractor to be rolled around, and lets the detailer step back to view the side of the vehicle to ensure that all imperfections and blemishes have been removed. The total square footage of the shop can be determined by answering a few of these questions:

• How many cars do you plan to work on simultaneously?• How many detailers will be working in the department? • Will service washes be done by the detailers, and how many wash bays will you need?• How will the shop be confi gured?

You never want to move cars around that are being worked on to get another car in or out. Many dealership detail departments are cramped and poorly laid out, which will affect overall performance, effi ciency and the quality of work.

Lighting.Along with having enough room to work, another very important thing to have in the detail shop is the correct lighting and plenty of it. The most skilled and knowledgeable detailer will miss imperfections if he/she can’t see them. A combination of metal halide and fl uorescent lighting is the key to illuminating a vehicle correctly. You need lights mounted on the front and side walls to properly direct light to the

sides of a vehicle. Having only lights mounted high on the ceiling simply will not do. If the vehicle is lit correctly, the combination of these types of lighting will show imperfections that most natural light will not. If your detailers can make the vehicles look spectacular under these lighting conditions; the cars will look even more brilliant when brought outside.

Equipment.The truth is you do not need a lot of fancy equipment and gadgets to correctly detail vehicles. Of course, some things are mandatory such as: compressed air, vacuums, carpet extractors, high speed buffers, orbital buffers, a large selection of the correct buffi ng pads, towels and chemicals to make all of the cars look like new. However, these items are cheap as far as shop equipment goes. In your wash bay, you will need a pressure washer (hot water preferred) a selection of brushes, wash mitts and chamois to wash and dry

the vehicle.

If you are willing to spend a little more money, use an electronic paint thickness gage to correctly measure the paint fi lm. There should also be a lift in every detail bay so the detailer is able to see the sides of the vehicle better, and it will save wear, tear and fatigue of the detailer.

Bottom line.If you set up your detail shop correctly, and give the detailers the needed equipment, while staying away from the expensive and needless gadgets, the shop will be more effi cient and profi table. Of course, training your detail staff is a key element for spectacular looking vehicles and the highest profi ts.

Kevin Farrell is the Owner of Kleen Car Auto Appearance. He can be contacted at 888.302.6400, or visit www.kleencarauto.com.

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feature solutionfeature solution

By Mark Strong The next generation Sales & Management CRM is here. Real-time Management that can make a real difference in sales...and your business.By Mark Strong The next generation Sales & M

Customer relations m a n a g e m e n t programs are c o m p u t e r i z e d

programs that help dealers work with their customers by providing automated reminders, customer follow-ups, appointment scheduling and so on. While fi rst-generation programs generally do an adequate job, they tend to be costly to purchase, set up and maintain. They can be fairly limited in scope and often may only be used on the dealership’s networked computers. These restrictions have left many dealers longing for a system with greater capabilities and have even prevented some dealers from setting up a computerized CRM in the fi rst place.

Not just a CRM � a CMS.The new next-generation systems have arrived and are not your ordinary customer relations managers. Rather, they are tightly integrated, easily managed, web-based systems that meld customer relations, inventory, service and sales management into extremely cost-effective, user-friendly tools that can be used not just at the dealership, but practically anywhere in the world. There’s even a new name for them: Customer Management Systems. CMSs take advantage of the latest advances in computer and Internet technology to offer:

• Vastly improved ease of use.• Greater fl exibility.• Adaptability to the needs of the individual dealership.• Integrated dealer database management.• Access from any computer with Internet access.• Real-time sales and customer tracking.• Advanced customer contact, follow-up and scheduling procedures.• Excellent brand development capabilities.• Internal messaging and email.• Daily work plans.• Fully scalable and customizable operation.• Online technical support, 24/7/365.

• Plus dozens of other valuable features.

A secure, web-based system.One of the major shortcomings of fi rst-generation CRMs is that their use is limited to designated computers at the dealership, usually on the dealer’s local area network. Second-generation customer management systems, on the other hand, are web-based applications. As long as an individual has an approved login name and password, he or she can access the system from any computer that has Internet access. There is no network to setup and maintain. This greatly reduces the hardware, networking and personnel costs and makes a CMS far more affordable.

“We had been considering one of the ordinary customer relations managers,” says James Hodge at Heritage Ford in Corydon, IN. “But we’re a small dealership with limited facilities and a limited budget. In order to make the system work, we would have had to install an entire computer network. You’re talking about a lot of money. With one of the new customer management systems, we can use the computers we have – even our home computers – to access and use the system. The savings are enormous.”

Here�s how the system works.A complete, integrated system.Technical professionals work closely with the individual dealer to adapt the system to meet the company’s needs. Since these systems are generally integrated with all major dealer management systems, this usually requires a minimum amount of customization. Dealers usually can choose from a number of modules, including customer reports and records, inventory management, dealer group reports for multiple dealer groups, business development center (BDC), and an Internet leads program.

The majority of customization is usually performed in the reports modules, adapting them to each dealer’s culture and processes. In fact, many function as time-saving, automated versions of the reports the dealer uses on a day-

to-day basis. The difference is that the information is updated automatically, in real time. Management obtains up-to-the-minute information on the operation of the entire dealership. The reports can be as broad or as detailed as the dealership requires, and can include dealer group reports for single and multiple dealership groups.

Security as good as a bank�s.Because the new CMSs are web-based applications, with all that dealer data out there on the Internet, security is a prime concern for CMS users. For this reason, when a dealer’s password-protected CMS website is created, it is secured by state-of-the-art, 128-bit encryption – the same extreme security that banks use to protect their websites. For ease of transition, if the dealer already has a website, the customer management system can usually be integrated with that site, still employing the same ultra-secure protection.

Once set up, the dealer’s CMS site can be reached from practically anywhere in the world by anyone with computer access to the Internet. However, no one can enter the site unless they have an approved login name and password. Even then, unless the individual is a high level manager or system administrator, each individual’s access is limited to pre-approved privileges.

In other words, a sales person cannot access the parts of the system that involves dealership management functions. He or she is limited to the messaging, email, customer management and inventory modules, and then only to those modules for his/her dealership within a multi-dealership auto group.

The advantagesof a web-based system.Web-based customer management systems offer a number of advantages over a customer relations system run on a local area network.

• Lower cost. There is no need to set up a costly network, because the system exists on the web and not on local computers. There is no


17june 2003

the dealership’s databases. Perhaps they need a customer phone number and address or the inventory of a certain make and model vehicle. With the next-generation customer management systems, the person can log onto their dealer site and obtain the information instantaneously, without having to phone the offi ce, be transferred to the correct person and have that person look up the information. If someone is working at home or traveling, that person can access the CMS and work at a virtual offi ce away from the dealership.

Harry Hutton is a sales manager at Ruxer Ford Lincoln-Mercury in Jasper, IN. “I use our customer management system all the time when I go to auctions,” he says. “I can check our inventory and our customer profi les to see what vehicles we need, compared to what’s available at the auction. I can bid smarter and get a better turnover. And that means better use of my time and better profi ts.”

• E-mail and internal messaging addresses for all users. Every individual designated as a customer management system user is assigned an e-mail and an internal messaging address, enabling group and individual internal communications, as well as full-featured e-mail

By Mark Strong The next generation Sales & Management CRM is here. Real-time Management that can make a real difference in sales...and your business.Management CRM is here. Real-time Management that can make a real difference in sales...and your business.

costly network cabling to install, no expensive servers to set up and run.

• 100 percent capture of showroom, phone and Internet trafÞ c. Because these systems are so tightly integrated, capturing and tracking customer information is easier, faster and more reliable. Follow-through operations are completely automated, including phone, email and mailed material. The electronic leads portion of the systems allows management to automatically assign Internet-acquired leads to the appropriate sales persons. In fact, these leads can be directed to web-access phones and handheld PCs, for even greater fl exibility and faster response.

� EfÞ cient data mining. Captured customer information is one of the most valuable assets of these systems. Using this data, dealers can profi le customers and direct your marketing specifi cally to their individual needs. It’s not only more effective, but it is a lot less expensive to target customers and prospects in this manner. In short, a dealer can generate a higher percentage of sales with a far lower investment. Marketing can be targeted by model line, for fi xed operations, for fi nance department products, for after-market products and more.

General Sales Manager Billy Worden, of Bill Collins Ford in Louisville, KY, says, “We’ve been able to cut our marketing budget by more than 35 percent because I can generate direct mail and email materials targeted specifi cally to the requirements of individual customers. If a person is looking for a particular type of SUV, I can refer to that specifi c vehicle in my letter to him or her. It’s a far more effective way to hook the customer’s interest and get him or her back in our showroom.”

• Offsite access to onsite information. There are countless incidents where a dealer’s management or sales personnel need to access information from one of

capabilities across the Internet.

• Automatic, no-cost upgrades. On most of these next-generations systems, dealers need never be concerned about their system being out-of-date. Most of these systems provide regular, no-cost upgrades automatically on the system software, making sure that they deliver the maximum performance and reliability.

• Designed to boost achievement. Any dealer knows what an industry achievement award can mean for the dealership. These systems have been designed specifi cally to help dealers earn manufacturers’ awards such as Ford’s Blue Oval, Lincoln/Mercury’s Premier Dealership Award or Chrysler’s Five Star Award. They make it far easier to meet award-winning customer service standards and maintain those standards year after year.

“We’ve always worked on the premise that the customer is king,” says Kurt Maletych, Vice President of Sales for Ken Grody Ford in Buena Park, CA. “Now we can really treat them like royalty! I’ve gotten a lot of feedback from customers who tell me that they’ve never been treated better or felt more comfortable at a dealership.”

Many of these systems have been designed by auto dealers, for auto dealers, to provide ‘street-smart’ business management integrated with next-generation, web-based customer relations. They are not only the most technologically advanced, but also the most comprehensive and easy-to-use systems on the market.

With one of these customer management systems, a dealer can go from the 19th century to the 21st century by leveraging the very latest technology.

Mark A. Strong is the Vice President and COO of e-PULSETrak.com. He can be contacted at 800.996.1952, or by email at [email protected].

Introducing the FirstIntroducing the FirstCustomer Management SystemCustomer Management System

autosuccess.biz18

Thomas Lower IIBy Thomas Lower II

The dollars that technicians spend on tools and equipment are not taxable and should not be

included with payroll. If technicians are not being paid for tool and equipment expenses separately from wages, then your dealership is losing profi ts, and your technicians are losing take-home pay. Tool reimbursement programs help dealerships and dealership employees save money, by properly identifying and separating, from wages, the amounts that technicians incur as an employee business expense. You’re probably asking, “How does this help my dealership or my employees?”

Under your current payroll method.As an example, use a technician paid at $20 per hour, working 40 hours per week. He would be grossing ($20 X 40 hrs.) $800 each week, then $228 would be taken out for taxes.

Under a toolreimbursement program.Use the same technician paid $20 per hour, but allocate $3 per hour to be paid for his tool expenses and the remaining $17 to be paid as wages. The $17 per hour wage check would still have all of the taxes withheld, but the $3 per hour payment would not be taxable; thus the technician would increase his take-home pay, because he is not paying taxes on the portion allocated for expense reimbursement. Based on the example above, the technician’s weekly take-home pay would increase to $605 per

week. Since the dealership has to match 7.65 percent for FICA/Medicare, the dealership will save $40 per month on this one employee.

Tool reimbursement programs do more than help employers and employees stop paying unnecessary payroll taxes and payroll related costs, they provide hardworking technicians with an added employee benefi t. The solution falls under one basic concept, to separate amounts paid to technicians for their tool and equipment expenses from their wages. If employees are spending money on tools and equipment, and they are legally defi ned Form W-2 employees, both the dealership and the technicians have a lot to gain by using a tool reimbursement program.

History and complianceof tool reimbursement programs. The concept of reimbursing employees for business expenses is not new; employers have been reimbursing employees for mileage, business lunches, hotels, etc., for many years.

The IRS decided that these employees, that bring their own tools and equipment to the job, should be reimbursed for their equipment through an Accountable Plan. All payments made through an Accountable Plan are not subject to any payroll related taxes, state taxes or federal income tax. Section 1.62-2(c)(4) indicates that amounts treated as paid under an Accountable Plan are excluded from the employee’s gross income, are not reported as wages or other compensation on the employee’s

Form W-2, and are exempt from the withholding and payment of income and employment taxes.

Choosing a plan provider.Operating a rate based Accountable Plan is a way to increase company profi ts and increase employee take-home pay. Choosing the right service provider is the most important step in the entire process. Accountable Plan rules are detailed and it takes the most experienced plan providers to give you the most compliant program. Competent providers should bring dealerships years of research and analysis on tool and equipment expenditures. In addition to providing a quality Accountable Plan, a good provider should offer dealers some type of guarantee, or indemnifi cation and audit support in the event of an audit. A good provider will also offer a knowledgeable Compliance Department consisting of a CPA and tax attorney that has experience in the Tool Reimbursement Industry. The provider chosen to operate a dealership’s plan should be able to provide live references. Whichever program a dealership decides

Tool Reimbursement Programs:They Can Help Your Dealership

profi t saving solution

19june 2003

to implement should be scrutinized by a CPA or tax attorney.

Willard DeFilipps, CPA, is an expert in the automotive industry. In his publication, (Dealer Tax Watch, September 2000 Issue, p.12-13) Mr. DeFilipps challenges dealers to ask providers some of the following questions:

• In which category does the technicians’ pay arrangement fall? • If the plan is intended to qualify as an Accountable Plan under Section 62(c) rules, are all three of the following requirements satisfi ed? - Business Connection - Substantiation - Return of amounts in excess• Is the plan written and when was the plan last revised?• Are the written terms of the arrangement, lease or contract followed in practice?• How is the plan operating in comparison with the written description of how the program is intended to operate?• What kind of weekly time and actual tool usage records and/or reports are the technicians completing and submitting?• Has the plan provider modifi ed its plan to make any changes as a result of the IRS Coordinated Issue Paper or any other IRS pronouncements or court cases?• Has the dealer asked the service plan provider to agree to reimburse or otherwise indemnify the dealer for any penalties, which the dealership may be assessed as a result of the failure of the plan to pass scrutiny by the IRS?

Tool reimbursement summarized.Implementing a tool reimbursement program into your dealership will save your dealership and your employee’s money. The IRS has looked at tool reimbursement programs and insists that any program must meet all of the requirements of the Accountable Plan. In deciding which plan provider to use, insist on a competent Compliance Department that will fully answer all of your questions and the questions that your accountant or attorneys may have. Make sure that the provider you choose guarantees their program. Take an honest look at these programs, recognize the vast amount of benefi ts you and your employees could realize, talk to your CPA and have him talk to a plan provider. It will be worth the time invested.

Thomas Lower II is the President of Pro-Check National. He can be contacted at 877.762.4325, or by email [email protected].

continued

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autosuccess.biz20

leadership solution Brian TracyBy Brian Tracy

Double & Triple YourOutput Using Your Time Wisely

There are several key principles about time that you must know. First of all, time is inelastic. It cannot

be stretched. It is fi xed in quantity. And it goes by with an absolutely unstoppable regularity. This is a fact of nature to which you must conform, because it cannot be changed. But the fact is, you have all the time there is, 24 fresh hours every day. And the entire quality of your life will be determined by how you use those hours.

Here is an important point. You can tell your true values and beliefs by the way you spend your time. You can tell how important something is to you by measuring the amount of time that you are willing to invest in it. Your decisions about time usage tell you who you really are, what you really want and where you are really going in life. You start your life with little money

and lots of time. If you work hard, save regularly and invest carefully, you will end your life with less time but ample money. Throughout your life you enter into a series of trades. You trade your time for the results and rewards of your life. At any given time, you can look around at where you are today and measure how well you have traded your time in the months and years past.

An excellent trader will be worth a good deal of money by the age of 40, 20 years or so after starting work. They will have traded a substantial amount of their time for learning. They will have traded their time to acquire key skills. They will have traded their time for setting goals and planning their life. They will have traded their time for personal and professional development. And as a result, they will now be trading their work time for a high income. This must be your goal as well.

Saving versus spending.Another key principle of time is that it

cannot be saved. Time can only be spent. It passes by quickly no matter what you do. The only power you have is to spend your time differently. You can reallocate time away from lower-value activities and toward higher-value activities, but you cannot save it.

People are successful, because they spend more of their time doing things of higher value. They do more of the things that move them toward their goals faster. People underachieve and fail, because they do too many things of low value or no value at all. They perform tasks and engage in activities that do not move them toward the things they really want. Worst of all, they waste time doing things that actually move them away from their goals.

You are always free to choose how you spend your time. You are in control. You are in the driver’s seat. You are the architect of your own destiny. Each moment, you can decide to spend your time on high-value activities or on low-value activities. The sum of your choices will determine the quality of your life today and tomorrow.

The two mostimportant words for success.The two most important words for success are focus and concentration. Your ability to focus clearly on your highest priorities and focus single-mindedly on them until they are complete, will determine how much you achieve more than any other qualities you can develop.

You can be the most brilliant person in your fi eld. You can be extra-ordinarily good-looking, well educated, highly personable and surrounded by all kinds of opportunities. But, if you cannot focus and concentrate, these attributes will be wasted.

Your ability to set clear priorities lies at the heart of personal and life management. All wasted effort and underachievement comes from misplaced and misdirected priorities. All success comes from the ability to select priorities intelligently and then to stay at your most valuable task until it is completed.

For more information, contact Gary Troy at 281.280.8769, or visit www.mastersalesskills.com.

21june 2003

Dennis McDonoughBy Dennis McDonough

Sales From the Internet:Why Doesn’t My Website Work, Part 3

This is the third in a series of articles that examines why websites do not meet the goals of

their companies.

The eternal question is, “What can I do to get more business out of my website?” As with many business issues there is not a single answer. Usually, there are many problems that affect a website’s total performance. Marketing and search engine optimization can bring customers to a site. The design can drive those same customers away.

The third challenge:The bleeding edge.Using the latest tool, or the latest release of software, in the computer world is known as ‘the bleeding edge’. Poor site performance, decreased usability, increased development time and unknown incompatibilities are all results of a website being created while depending on ‘the bleeding edge’.

There is always a temptation to let your website designer use the latest new tool that comes along. Sometimes this can be justifi ed; usually that is not the

case for a complete website. Just ask yourself the question, “Do I always install every new software or upgrade on my computer?” Do you want to expect your customers to install new software to their computers to use your website?

The Internet has been around for quite a while. Accepted standards have matured over the past few years. At fi rst there was just text, then HTML and browsers came along. This allowed us to show graphics and images. Browsers changed and offered features allowing the use of scripting, and database integration, that you’ve come to expect as part of the Internet experience. Then more ideas came along, how to control printable pages or use motion and sound. Changes in the standards have all come with the increased performance of the personal computers and bandwidth. Each new tool and feature has new requirements and expectations for the systems they run on.

Have your web designer try out new software features on part of your site. Verify the acceptance of them. Website statistics can tell us a lot about the users’ experience. If people only open the fi rst

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page of an area and don’t continue on to the next in the group, this may mean that they never actually see that page. These same statistics can point out many site performance problems and usability issues.

Look at what happens if a feature cannot be loaded. Test with a computer that does not have the latest browser installed. If it is an element of the web page, does it leave a hole on that page? Is this where you lose your buyer? Do you give your customers an alternative path to this information? Don’t just get excited over any new features and expect that all of your potential customers will immediately upgrade their software to just use your website.

Using the latest software is not by itself bad. Using a new tool without proper thought, design and testing can be disastrous. You need to keep today’s Internet standards in mind as your website is designed.

Dennis McDonough is the President of BIT Concepts. Dennis can be contacted at 502-587-5940 ext 202, or by email at [email protected].

marketing solution

autosuccess.biz2022

Joe CourregeBy Joe Courrege

Call to Action:Create Customer Demand

marketing solution

The high-powered retail infomercial is a combination of direct response t e c h n i q u e s coupled with

information and knowledge creating a need or desire to purchase one of your vehicles, your fi nancing services and other up sell products. Infomercials can boost retail sales and don’t compete with other forms of advertising that attract walk-in customers. Infomercials catch channel surfers who are not even thinking about you until they watch your 30-minute show.

Remember, there are many moving targets in an infomercial campaign that demand specialized knowledge, contacts and expertise. Infomercials are 30-minute programs fi lled with information. Customers are continually encouraged by the benefi ts offered by the dealer during this event and many will make a decision to pick up the telephone and call the number on the TV screen.

Infomercial strategies.Choose an infomercial company that specializes in infomercials, paid programming and direct response television marketing. Creative infomercial production must create a program that will keep the channel surfi ng customer watching by creating interest, demand and need for your product.

Infomercials are not solely designed to gain name recognition for a dealer but also to encourage the consumer to immediately call your dealership thus driving retail sales. Most successful dealers using celebrity infomercials have turned to a two step process. The objective is to successfully generate a lead from the infomercial and drive traffi c to the dealership. Step 1 - Leads

are generated by viewers calling an 800 number. At that point the interviewer takes a short credit application. Within minutes of completing the interview the application is faxed and e-mailed to the dealer. Step 2 - Dealer then returns the call to customer to set appointment.

Why use celebrities for these high-powered infomercials?Professionally hosted celebrity auto infomercials are image-building 30 minute commercials creatively produced about the dealership. Celebrities bring a sense of credibility, integrity and believability to your campaign. Properly produced, a potential customer will watch a celebrity infomercial four times longer than a non-celebrity commercial with similar content.

A good celebrity infomercial program in a Neilsen Metered Television Market area should produce the following results based on proper lead management and customer relations.

• 500 calls per month (based on running six to ten times per month)• 12 percent closing ratio• 60 contracts per month• $2,500 gross per sale• $150,000 gross per month• $1,800,000 gross per year

What about other advertising?Infomercials effectively supplement a dealer’s existing advertising media mix. By running infomercials on national cable and broadcast television, a dealer’s name, product history and benefi ts can be shared with millions of additional prospects. Sales are made in direct proportion to the number of viewers and callers who respond to your infomercial. The cost per lead or cost per sale can usually match or beat other marketing methods such as direct mail, print ads or radio.

Remember:• For best results use celebrities. They will capture more interest in the campaign as the viewer will watch for a longer period of time and hear your message over and over again.• Have an organized plan. You must be ready for hundreds of additional calls, credit applications, appointments, return calls, more cars, etc.• Select an expert in celebrity management, infomercial production and marketing to plan and manage your infomercial campaign (check out past shows - how many calls, appointments, sales, etc.). • Don’t hesitate to get into this explosive method of television marketing.• Make a commitment - get advice - follow the advice - and don’t quit.• Set up a department to work those leads. Set the appointments and sell the cars. • Use a two step method to generate leads then call the customer back and invite them to the dealership (customers will drive past many dealerships just to keep the appointment).• Don’t be afraid to use infomercials to drive more sales (more and more Fortune 500 companies are doing just that).

Despite the existence of misinformation concerning infomercials at the executive and upper management levels in some new car dealerships, there are a growing number of dealership owners, general managers and fi nance directors realizing that celebrity infomercials are big business and potentially a multi-million dollar profi t center that is relatively simple and inexpensive to set up and manage with existing personnel.

Next month, how to set up an infomercial profi t center. Don’t be afraid to use infomercials to drive more sales.

Joe Courrege is the President of NFL Management and Celebrity Promotions. He can be contacted at 972.675.1925, or by email at [email protected].

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Best Practice #3 & #4:Knowledge is Power

Jay BetzBy Jay Betzmarketing solution

Thousands of multi-million dollar companies pay incredible sums of money to research and marketing

fi rms to obtain more knowledge about their customers and their market; once gathered, they leverage this newfound power to daily increase their fortunes. Are you leveraging what you know to do the same thing?

Day in and day out, you are surrounded by all the knowledge you could possibly need to empower your dealership, make more money, better service your customers and create new ones for years to come. Utilize the information available to you; it really will help?

With knowledge of your market, your customers and your competition, you will be able to better understand the mindset your customers are coming into your store with and be able to better suit their needs. With this information, you will be able to better stock your lot, because you’ll know what your customers like, what the market can hold and how to attract your market to your dealership rather than the lot down the street.

With an unmatched knowledge of your market, you will be able to turn your store into the dependable used car sales dealership in the area and become more of a trusted automotive partner rather than another guy out to sell cars.

Best practice #3: Market research. First, utilize accessible market data to keep you up to date on what your competition is selling, what your market is buying and what your current potential customers are looking for. There are several steps to locating such information. The Internet is an amazing resource. You can potentially fi nd websites for each of your competitors listing what inventory they are carrying at what asking price. Market studies are sometimes available (depending on the size of your market) that can tell you current macro trends you might not be seeing. Internet search engines can also help you fi nd out how the used car sales industry is doing overall in your market. Reading your area newspaper and business journals will help as well as keeping an eye out for advertisements run by your competitors.

Best practice #4: Customer research. From reaching ethnic groups to understanding traffi c and driving patterns,

market knowledge will lead to additional sales. The better you know who is in your market, the better equipped you will be to communicate with them more effectively. To intimately know and understand the mindset of your potential customer you need to do a little research. Informal interviews with friends and acquaintances around your area are great sources of information. People are always willing to talk about themselves; fi nd out what makes them excited when thinking about purchasing a vehicle. Surrounding area driving patterns are good to know when thinking about outdoor advertising. A quick call to the local DOT will tell you traffi c counts for your market’s busiest roads. On a more granular level, talk to the people who browse your lot. Ask about where they work, how many kids they have, fi nd out what they use their cars for the most. Another avenue of information is lost sales analysis. Putting together a small team to contact past visitors who didn’t purchase a vehicle from you to fi nd out why they didn’t buy could be very benefi cial. Even the most basic bits of information can be turned into additional sales when leveraged correctly.

Most importantly, and sometimes most challenging, is keeping an accurate desk log. If a potential customer is in your facility, there is a potential to obtain valuable information about all aspects of their world. The information should be used in reviewing inventory mix, post-visit communications, advertising, marketing, closing ratios, etc. Once again, the more you know about them, the more opportunity you have to reach them effectively and effi ciently and the better chance you have of turning them into customers for life.

With more knowledge comes more power. With more power comes more recognition, which, in turn, becomes an authoritative nature…with more authority comes more trust and with more trust comes additional sales.

Jay Betz is the President of Thrifty Car Sales, Inc. and Executive Vice President of Fleet Operations for Dollar Thrifty Automotive Group, Inc. He can be contacted at 918.669.2241, or by email at [email protected].

�� Working with Fran, we are now the largest Chevrolet Dealer in central Georgia. Fran and his people are the best!

George Youman Jr., Youman Chevrolet, Macon, GA�� We are using Fran Taylor�s Prospecting System and made $500,000 more than we have ever made and quit advertising. They are the best training company we have ever used!Jim Shorkey, Courtesy Olds, Jeep, Daewoo, Irwin, PA

�� We are really impressed with how your guys raised our grosses over $500 the Þ rst month. Your prospecting and motivating tactics are the best by far. Our goal was 200 units a month, now it is 250. You are #1!

Larry Bembenick, S & L Automotive, Greenbay, WI

Taylor Techniques, Inc.Taylor Techniques, Inc.

717 566 1566717 566 1566

Fran Taylor

is President

and CEO of Taylor

Techniques, Inc.

He can be contacted at

[email protected]

25june 2003

By Glen Crawford

sales and service solutions

By Don Reed

Experienced or Inexperienced �That is the Question

Question:Do you recommend hiring experienced or inexperienced sales people and why?

Answer:Every year the coaches and owners of any professional football team, no matter how good they are, look to better their team. First, the team must fi gure out where they are the weakest, so they know where to invest the mot effort.

They will try to pick up pros, and they will usually spend more money on a pro, but obviously it could be a complete upgrade for the whole team. Most pros will be able to adjust to the team’s system easily and make an immediate impact.

But the quality teams are also scouting out the college talent, the rookies, because these individuals, with some work and guidance, could be the future pros.

The bottom line is that car dealers should always be looking for the best talent, whether it be seeking out the pro or grooming the rookie. As long as you are working both areas steadily are consistently, your team should be prepared for ‘your season’.

Glen Crawford is the Chief Operating Offi cer of AutoMax. He can be con-tacted at 800.878.5090, or by email at [email protected].

If You Need ServiceSolutions, Ask a Pro

Question:How many repair orders should my service advisor write everyday?

Answer:If you expect your advisors to have ample time to properly advise customers of their vehicle’s service needs, they should write an average of no more than 20 repair orders per day, including internals and warranty.

Question:Every service bay has a productive technician, so how can I get more customer-pay sales without adding another shift?

Answer:First, you must evaluate the productivity of each technician. The industry guide is 120% productivity for the entire service department. (Flat rate hours billed versus clock hours worked.) Second, look for the sources of lost productivity, such as waiting at the parts counter or waiting for the advisors to call customers for repair authorization.

Question:What should a good service department average in hours per customer-pay repair orders?

Answer:Most dealerships are averaging around 1.5 hours per RO or less. A good job is 2.5 to 3.0 for all dealerships, except for ‘high line’ imports, which should be 3.5 to 4.0.

Don Reed is the Managing Director of AutoMax Service Solutions. He can becontacted at 800.878.5090, or by email at [email protected].

autosuccess.biz26

Prepaid Maintenance Contracts:Build Loyalty, Customer Satisfaction and Profi tability

Dan McNellisBy Dan McNellisfi xed operation solution

Service contracts for vehicles are becoming more common particularly with m a n u f a c t u r e r s

offering a variety of programs for new cars and competing effectively with aftermarket extended service contract offerings. The manufacturers, however, forget a very important piece of dealership business when it comes to extended service contracts: prepaid maintenance plans for both new and used vehicles.

Such plans can increase customer loyalty and return business. Financial managers need to be aware of these programs and be able to sell them as value-added benefi ts for new and used vehicle purchases. Such programs can help get dealers’ customers in the habit of coming back for vehicle maintenance and repair and will improve a dealership’s bottom line.

Prepaid maintenance plans can be sold as a stand-alone service but are commonly sold as an adjunct or extension of the

original service contract. Dealerships can fi nd the most value in plans that are fl exible, cover basic maintenance items and check critical components.

Basic maintenance items include an oil and fi lter change, inspection of belts and hoses, inspection of fuel and vapor lines, and a check of all fl uids. Critical safety items should also be covered. These include inspection of the front brakes, PCV and brake hoses, fuel tank, exhaust system and CV Boots/U-Joints. Lubricating the ball joints and tie rod ends should be included along with checking the tires, headlights, taillights and brake lights.

Sales people promoting prepaid maintenance plans can expect the best results by simply connecting with the customer. The sales person learns about the customer’s driving and maintenance habits and then demonstrates how such a plan can cost about the same as going to the local garage. Sales people can then educate their customers on the benefi ts of coming back to the dealership, where they

will see familiar faces and manufacturer-certifi ed mechanics who actually get to know them and their vehicle.

By extending service with a maintenance plan, dealerships are clearing the way for return visits and the opportunity to maintain great customer relationships. Dealers can even sprinkle in some of their own perks to complement the maintenance contract program. For example, customers who have purchased maintenance contracts can be moved to the front of the line when coming in for service or maintenance checks.

The bottom line for prepaid maintenance plans: customers gain peace of mind and protect the investment in their car; dealerships, in turn, build profi tability in their service department and protect the investment in their customers.

Dan McNellis is the President and CEO of United Car Care, Inc. He can be contacted at 1.800.571.6412, or 303.306.0502.

What:What: �Mazda Rev It Up� is the world�s largest performance driving school tour and national competitive driving challenge. It includes classroom instruction, performance driving school, national competition and a lifestyle festival. �Mazda Rev It Up� is a terriÞ c opportunity for everyone to improve his or her driving skills and have fun doing it.

Goals:Goals: To increase consumer awareness of the Mazda brand and new Mazda products. This year�s featured vehicle is the Mazda 6. To send quality leads to Mazda dealerships, ups that won�t even need a test drive. To teach drivers skills that apply to and better their everyday driving.

Event consists of:Event consists of: � �Chalk Talk� classroom instruction� Performance driving instruction with professional drivers in three in-car clinics. � A solo autocross event that pits the driver against the clock and competitors.

�We have 3,000 to 3,500 drives a weekend, so we literally get this many test drives over a Saturday and Sunday.� � John Faulkner

Instructors:Instructors: Randy Tolsma, John Rutherford IV, Adam Andretti, Ted Prappas

Attendees:Attendees: Anyone over 18 with a valid drivers license.

Cost:Cost: Free entrance, $39 participation fee for school attendees and competitors.

Dates:Dates: June 7 & 8, Minneapolis, MN, Minnesota Fairgrounds June 14 &15, St. Louis, MO, UMB Bank Pavilion June 21 &22, Chicago, Balmoral Park July 12 &13, Boston, MA, Gillette Stadium July 19 & 20, Philadelphia, PA, Philadelphia Park July 26 & 27, Washington, DC, FedEx Field August 2 & 3, New York, NY, Belmont Park

National Finals:National Finals: Last weekend of August, Mazda Raceway Laguna Seca

�There has NEVER been a program like this!� � John Faulkner

For further information:For further information: Call the Program Director, John Faulkner at 949.727.6378 or visit www.MazdaRevItUp.com

sales tips with David Thomas David ThomasBy David Thomas

Presentation Is EverythingOne of my favorite shows as a kid was Monte Hall’s “Let’s Make a Deal.” The game show contestant would

negotiate his/her way to a better prize. Two young attractive female assistants would present the prizes to be bartered. Their presentations skills captivated your attention. They could make a ten-dollar toaster just as appealing as a new refrigerator. It was the presentation that made unsuspecting contestants trade down for prizes. It was a fun and entertaining show that demonstrated the benefi t of great presentation skills.

If you took a moment and looked around your dealership, you would probably fi nd that the top performers have better than average demonstration or presentation skills. Being an effective communicator is also a key ingredient.

Here are some tips in developing your presentation skills:

1. Analyze wants and needs to present the right product the fi rst time.

2. Never present a dirty or untidy product.

3. Separate from the pack. Pull the vehicle out – make it stand out.

4. Stage presentations on the curb, parking area or a location with a scenic surrounding.

5. Preset an appropriate AC/Heat setting in the car before your guest gets in. Keep the fan on a low setting to enable the customer to hear you during the demo drive.

6. Preset a neutral FM station, or create and use a demo CD. I recommend a good jazz or movie soundtrack (something upbeat and majestic for impact).

7. Engage their senses of touch, smell, and visuals. Use colorful adjectives to describe features (i.e. supple leather, pearl paint, elegant maple wood trim, 8-speaker surround sound effect, sky-view/moon-roof, projector style headlamps, aerodynamic styling, dual-comfort automated climate control, lumbar seat adjustments, etc).

8. They sit; you adjust seat, steering wheel, seatbelt and mirrors. Cater to them.

9. Make the experience fun and

entertaining. If you don’t offer a captivating presentation, the next sales person will.

Besides watching top performers in your dealership, go outside the industry for some powerful tips. I recommend a trip to a Neiman Marcus or Nordstrom. Try on a suit or fi ne shoes to observe the associate’s presentation.

Your dynamic presentation will give you an edge and help you to the closing table, not to mention making your career a lot more fun and rewarding.

David Thomas is the Owner of West Texas Nissan in Odessa, TX. He can be contacted at 214.384.9100, or by email at [email protected].

27june 2003

autosuccess.biz282828

Tom JosephBy Tom Josephsales and training solution

payment fi t your budget?”

Objection 5: I’m going to shop this price around town for the best price.”

• “What do you feel you are going to save if you go somewhere else? Suppose I could do that here and save you a lot of time.” • If the customer still insists on

Overcoming ObjectionsThe following are fi ve common objections that my sales people hear from customers. With each of

the objections, you will fi nd the word tracks they use to overcome them. To use these statements most effectively, you must fi rst complete the steps to a sale correctly, and you must also build rapport with your customer.

Objection 1: I don’t want to put any money down.

• “Suppose we could handle that; with your good credit and the loan value on the vehicle, you may not need money down.” (If the customer has tier one or tier two credit, it’s not a problem).• “The bank does like to see you invest in this transaction…what about your taxes? Nobody likes to pay interest on taxes.”

Objection 2: This monthly payment is higher than I want to pay.

• “Since the car you are currently looking at is several years newer, you’ll have to expect some increase.”• “How much money were you going to invest in this transaction, it could possibly lower your monthly payment.”

Objection 3: I’m going to walk out of here right now.

• “Well, let’s relax, what is it that this deal is missing for you. Help me to sell you this car. What is it that you don’t like, the dealership, me or the price?” (It’s almost always the price). “Now let’s see if we can work on that. You are the only one that really knows what you want to pay.”• Sometimes you just have to say, “Goodbye.”

Objection 4: What’s your best price?• “The selling price of this vehicle is (MSRP). And with this car, you’re getting (list options and build value). As you can tell, the value of this car is well worth it.”• “We can work on the selling price through the down payment, what I have to know now is will this

a dollar fi gure, give it to them. If you don’t give them a number, you won’t even have the chance to get them back.

Tom Joseph is the General Manager of Green Tree Toyota in Clarksville, IN. He can be contacted by email at [email protected].

the more you know about your customers and what their hot buttons are, the more information you have and can use in your negotiation to help you close the sale.

The solution: Learn to listen.You can’t think and listen at the same time. Selling has to be practiced until it’s a refl ex response or a refl ex action. You can’t listen, because you’re always trying to think of what to say next. Why are you thinking instead of listening? Because, you have never developed your selling skills to the point of being able to respond automatically to what they say so you have to think of a response instead of knowing how to respond. And that’s a very big difference in your sales and in your paycheck at the end of the month.

Problem: You react.If you’re going to learn how to negotiate and win, you’re going to have to learn how to keep from reacting every time your customer says something. You need to learn how to control your reaction so you can respond correctly.

For example: Everything is going great, and the customer hasn’t brought up price on the lot. Once you sit down to do the paperwork they say, “We pulled a report off the Internet,” or “Our credit union told us what our trade is worth.” Too many sales people react and immediately attack what the customer just said, and either say something like “Well, did the credit union say they’d buy the car for that fi gure?” Or, they get so fl ustered they can’t regain control, and it’s all down hill from there.

The solution:Two key points to remember.Think before you speak. If your approach is to attack the fi gures, become sarcastic or if you allow this to turn into an argument, you will lose this sale. Be smart and do just the opposite. Always start every response to any objection with a positive. “Great, it sounds like you’ve done your homework ... that’ll help us save time” … and continue.

Let’s assume the trade-in they’re talking about is pretty rough. Again, you don’t use some response like… “This report says this is for an ‘exceptional’ car, and you must have left that one at home. So, unless you’ve got hundred dollar bills stashed under the back seat to make that thing worth more,

you might want to borrow that oxygen bottle, cause you’ll need it in a minute.”

Try a professional approach to bringing them back to a more realistic fi gure for their trade instead. “That’s great, etc. Oh, Bob – I just noticed, this printout is the retail value. Did you bring the one for wholesale, too? Good, thanks. Now this talks about the vehicle being ready for a dealer to sell and as you know, there are a few things we need to take care of fi rst. The next buyer will want that right rear tire replaced and those dings in the door removed, plus we have to smog and certify the vehicle. Overall, though, it seems like a pretty nice car. In fact, you’re in luck, because our buyer is the highest bidder in town, and I’ll have him take a look at it as soon as he/she is free. Now I’m going to need some other information real quick (continue asking questions).”

Note: Negotiation is not a price dropping contest, and it isn’t splitting things.

Negotiation is learning how to continue the value building process once you’re

inside fi nalizing the paperwork and taking care of the terms. If you allow the negotiation to focus on dropping prices and splitting everything … you’re trying to close your sale again on price and not on value. And in doing so, you actually lower the value you’ve been building all this time which makes it tougher for them to say ‘yes’.

Don’t think of negotiation as coming together on price … think of it as coming together on ‘terms’ instead. Leave the price intact and focus on terms (budget / payments / down), and you’ll fi nd that your negotiation is easier, faster, you’ll hold more gross and your customers will leave feeling like they’ve gotten that win/win Ben Franklin said was so important in this process.

Develop your selling skills, and you can have a record year, every year in sales.

Joe Verde is the President of The Joe Verde Group. He can be contacted at 800.445.6217, or at www.joeverde.com.

continued from pg. 6

KLEEN CARKLEEN CARAUTO APPEARANCEAUTO APPEARANCE

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DETAIL TRAINING• Turn detailers into skilled technicians• Increase gross on pre-owned vehicles• Increase CSI• Turn your detail shop into a profit center• Already in place for a major manufacturer

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We can fix all your detail shop problems with the most comprehensive training program of its kind!

“Kevin repaired a deep scratch on a brand new vehicle that had just been delivered. He turned a po-tential unhappy customer into a very happy one.”

Tom Finegan,Shelton Mitsubishi

Shelton Ct.

How to Become a Successful Negotiator, cont.

29june 2003

autosuccess.biz282830

Fran TaylorBy Fran Taylorsales and training solution

What a Manager DoesAny manager should be pumped up about the car business and the group of people

he/she leads. Success and decisions are made from the top down. People will follow leaders and do what they are told out of sheer respect.

If managers just tell people without showing them, they are not leaders and certainly haven’t earned any respect.

First, you must be the leader and not the boss. When teaching, teach why, when, how and what is the benefi t for making a change. Second, you must do what you have instructed them to do, or show them, not just tell them.

The manager must lead by example instead of placing the blame elsewhere. You have to teach them by doing it. You cannot tell a racehorse how to run. Until you put someone on its back and show it, it will never be a winner.

Some managers simply tell the sales people to get an appointment. You should personally sit down with the sales people and help them make calls. Load their lips, so to speak. You will notice many more appointments on the appointment board. Again, show the sales people how to call and answer the phone by taking the time to teach them. Sit down with them and write notes and actually help them on a daily basis until they get it. Always offer help instead of being a drill sergeant and giving orders.

It is the manager’s responsibility to teach, motivate and help their sales force, not just sit in the ivory tower. You are always going to have to help sales people, and that will never go away. The best dealerships do this.

If your managers need help, give it to them. A lot of managers were great sales people and promoted to manager without proper training.

Fully explain what their job description is, and show the managers how to do it. Then make it a requirement for all

people to follow the rules from the manager down. Accountability is the start of success, and the process to follow is success.

Work smart not hard. It is more fun when you help someone. Success starts the day you do. To be successful start

©2003 Strategic Marketing, Inc.800-799-8633

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where others stop, and when you have done your very best, then look for help.

Fran Taylor is the President and CEO of Taylor Techniques, Inc. He can be contacted at 717.566.1566, or by email at [email protected].