Car Biz Today Magazine March 2015 Issue

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CAR BIZ TODAYThe O cial News Source of The Retail Automotive Industry

GLENN PASCH

KIRK MANZO

RICH HOLLAND

...see PAGE 10

...see PAGE 32

...see PAGE 14

SERVICING MILLENNIALS

COLLABORATIVE LEADERSHIP

JOE VERDE

...see PAGE 24

MANAGEMENT-DRIVEN

LEADERSHIP

MAKE THE MOST OF YOUR MARKETING

DOLLARS

CAR BIZ TODAYThe O cial News Source of The Retail Automotive IndustryThe O cial News Source of The Retail Automotive Industry

ISSUE 12March 2015 Entire contents 2015 Car Biz Today. All Rights Reserved.

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PowerDealer Competitive intelligence Improved sales Increased profits

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CHANGE IS CONSTANTMark Schienberg, president of the Greater New York Automobile Dealers Association, discusses how dealer education is playing an even bigger role in his organizations mission. The Center for Automotive Education and Training in Whitestone, N.Y., plays a signifi cant part in off ering dealers the training they need to drive profi ts. See PAGE 8

CREATIVITY SELLS CARS

CREATIVITY CREATIVITY SELLS CARS

CREATIVITY SELLS CARS

Managing partners Will Hardeman and his sister Genny Hardeman are guiding Continental Automotive Group to meet the expectations of the next generation of shoppersand employees. See PAGE 18

THE NEXTWAVE OFDIGITAL MARKETINGDean Evans, left, CEO of LotLinx; and Jason Knight, founder, believe their companys Deeplinking technology is the next big thing in digital marketing. See PAGE 28

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CAR BIZ TODAYM A G A Z I N E

Letter from the editorDear Readers,

This month I had the honor of speaking with three gentlemen who are making a positive impact in the retail automotive industry.First, I interviewed Will Hardeman, managing partner of Continental Automotive Group in Austin, Texas. Under Wills and

his sister Gennys leadership, the company is ahead of the curve when it comes to creating an atmosphere that keeps both his employees and his customers happy. The auto group has long provided benefi ts for its employees that are practically unheard of in the retail industry. You can read about their story on page 18.

Next months New York International Auto Show marks the 115th year of the countrys largest and oldest auto show. President of the New York Automobile Dealers Association Mark Schienberg shares some insight into what attendees of the show can expect. His associations story is on page 8.

LotLinx, a digital marketing technology company, is making waves with its Deeplinking platform which connects dealers to their shoppers faster than the typical online lead form. CEO Dean Evans, who has an extensive background in retail, manufacturer operations and digital marketing, explains why his companys technology has piqued the interest of dealers, third-party search companies and industry marketing consultants alike . You can read about his companys mission and success on page 28.

As always, let me know what you think! Your feedback is important in ensuring that we at Car Biz Today continue to bring content to you that is informative and relevant. And we also just like to hear from our readers! Shoot me an email and let me know what makes your dealership special. You could be one of our featured dealers in an upcoming issue.

Have the best March ever!

President and PublisherJim Fitzpatrick

Vice President / COO Bridget Everett

Managing EditorCarol White

Associate EditorsRussell Brown

Creative DirectorSimone Tieber

DesignerBetsy Alvarez

Production ManagerJason Lowsy

Creative Director - DigitalKeith Tuggle

Marketing AssociateRoxanne Luhr

Subscription ManagerTom Domagalski

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CAROL WHITEManaging Editor

CAR BIZ TODAYCBTNews.com MARCH4


NewsINDUSTRYMichelle Primm Named Barbara Cox Automotive Woman of the Year

Cox Automotive presented the 10th annual Barbara Cox Automotive Woman of the Year award to Michelle Primm, managing partner of Cascade Auto Group in Cuyahoga Falls, Ohio. The award, which is awarded to women who demonstrate business leader-ship and community advocacy, is named after the late Barbara Cox, one of Cox Enterprises owners and mother of Chairman Jim Kenne-dy. Cox Automotive President San-dy Schwartz presented the award during the Northwood University Dealer Education Awards annual breakfast at the National Automo-bile Dealers Association convention.

For more than three decades, Primm has heavily supported the automotive industry. A graduate of the National Automobile Dealers Association Dealer Candidate Academy, she currently represents women dealers on the NADA Board of Directors, is chair of the NADART and serves as vice president for the Ohio Bureau of Motor Vehicles Licensing Board. Primm also is a member of the Ohio Automobile Dealers Association and Greater Cleveland Automo-bile Dealers Association, for which she was a past board member representing Mazda, Subaru, Audi and Porsche. In addition, she was president of the BMW Dealer Licensing Board from 2005 to 2007 and a member from 1994 to 2007.

In addition to the award presented to Primm, Manheim and Cox Automotive made a $10,000 scholarship contribution to Kayleen OBoyle, a student in the Automotive Marketing and Management program at Northwood University in West Palm Beach, Fla.

Gerrish Honda Recognized for 40 Years of ServiceKurt Gerrish, left, president of Gerrish Honda in Lebanon, N.H., received the 40-year award from William Bergmann, assistant sales manager for American Honda Motor Co. - New England.

Winter Park Volvo Dealer Receives 40-Year AwardBilly Dingman, left, and Richie Dingman, dealer princi-pals at The Volvo Store in Florida, received a 40-year award from the manufacturer. The dealership has been family-owned and operated since opening in 1984.

Cochran Infi niti Receives 25-Year AwardRob Cochran, left, president and CEO of Cochran Infi niti in Wexford, Pa., received a 25-year award from Je rey Harris, vice president of Infi niti USAs East Region. Cochran Infi niti relocated its operations to Wexford in December, and is one of the brands original 51 launch retailers, dating back to 1989.

WHATS GOING ON AT YOUR DEALERSHIP?Send us your announcements so we can share the good news with our readers. Email your submissions to [email protected]

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GREATER NEW YORK

There are some things in retail automotive that havent changed much since the early 1900s. For example, the original minutes taken at the fi rst meeting of the Brooklyn Motor Vehicle Dealers Association states that one of its missions at the time was to create an exhibition to show off the new cars being made and generate excitement with the public in hopes of making some sales.

The association, now known as the Greater New York Automobile Dealers Association, also indicated that there was a need even back then for representation regarding taxes and regulations that were being handed down by local government. For more than a hundred years, dealer associations have fought the fi ght, and most likely will continue to long after you and I leave this earth.

Fast-forward to 2015 and youll fi nd that regional dealer associations still place advocacy for its members and producing elaborate car shows to entice, inform and infl uence todays consumers as top priorities. In fact, this year marks the 115th anniversary of the New York International Auto Show. (See sidebar)

Although many aspects of the auto industry have remained constant through the years, there are changes taking place today that dealers must embrace to ensure the vitality and future of retail automotive.

Mark Schienberg, president of GNYADA, realized PHO

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CONSTANT CHANGECONSTANT CHANGECONSTANT CHANGE

The Greater New York Automobile Dealers Association still operates on many of the principles that it was founded on more than 100 years ago, while at the same time keeping its fi nger on the pulse of the ever-changing world of retail automotive. BY CAROL WHITE

when he joined the organization in 1985 that its dealer members needed more. Its not enough to just hold an auto show, put out newsletters and hold a golf outing, he said. Theres so much more that retailers need and the world has been changing so quickly that, for an association, its important to off er services for dealers. For example, education.

Early in his career with the association, Schienberg was asked by New Yorks Department of Motor Vehicles to assist with the vast amount of incorrect paperwork being submitted by dealerships. The solution was to off er education and training to billing and title clerks in proper procedures, which was highly successful and led to GNYADAs increased focus on education for dealers and their personnel. Today it off ers more than 60 diff erent programs for every area of the dealership everything from receptionist training, data security, BDC boot camps, sales training and even how to manage diffi cult people.

Training in the earlier days was usually conducted at area hotel meeting spaces. We agreed that training and education was the future of this industry, and we decided that if we were going to get serious in this area, we needed to build our own facility and house all the training programs.

In 2005, GNYADA opened the Center for Automotive Education and Training (CAET), a $28-million, 90,000-square-foot, state-of-the-art facility where all

of its education programs are conducted. Located in Whitestone, N.Y., in the borough of Queens, the center is also available for corporate meetings, seminars, product launches and even social events. The 5,000-square-foot atrium is constructed of steel and glass and boasts a 42-foot high ceiling. The center also has a 40-seat, fully equipped boardroom, various classrooms, a computer lab, breakout rooms and fully equipped training bays. Thirteen manufacturers use the center for their training programs, including Toyota, which maintains permanent service bays for its training.

Finding skilled technicians has been a challenge for dealers all over the country. With the average age of

Recruiting more women into all areas of the car business is a major focus for GNYADA.

GREATER NEW YORK AUTOMOBILE DEALERS ASSOCIATION

More than a million visitors flock to the Jacob Javits Center in New York

City each year to attend the New York International Auto Show, the oldest

and largest auto show in the country.Mark Schienberg, President ofthe Greater New York Dealers Association


todays service technicians being 48, that need is not going away any time soon. In answer to this dilemma, GNYADA collaborated with Lincoln Technical Institute in building a training center at the facility. We interviewed just about every post secondary technician-training program, and what we liked about Lincoln Tech was, fi rst of all they were willing to invest $8 million in fi tting their facility out with the latest training equipment, said Schienberg. The schools approach to training and even mentoring the students once they graduate was another factor in GNYADA choosing Lincoln.

Working with a for-profi t company such as Lincoln instead of partnering with a community college for training provides GNYADA with more fl exibility to change its course off erings as the industry changes. One area it has turned its focus on is recruiting more women into the business not in just administrative positions, but in every area of the dealership including the service bays. Womens analytical and diagnostic skills are incredibly strong, explained Schienberg, making them perfect candidates for positions in fi xed ops.

Schienberg also pointed out that 50 percent of all new car buyers are women, and they infl uence more than 85 percent of purchase decisions. Dealerships, therefore, should refl ect this changing demographic. I think the industry, lacking a better description, has been a good ol boys club for way too long, he said. We have to break the mold. The world is changing and statistics show that the infl uence of women car buyers is huge.

Based on feedback hes received from his members, Schienberg believes saleswomen probably have higher closing ratios, grosses and customer satisfaction scores than many of the men in the business. Their ability to break down barriers, put the customers at ease and listen to the buyers needs are probably big contributors to that theory. Women come in with a fresher approach, he said.

In addition to women, the association is actively recruiting people who are more familiar with the customs of its customers in the dealerships communities. In Queens alone, the population is 28 percent Hispanic and 24.3 percent Asian, according to the U.S. Census Bureau. Our neighborhoods are very diversifi ed, said Schienberg. We have more languages spoken here than any other place in the country. This is a person-to-person business, and you need to be able to have people in the dealerships who speak diff erent languages and understand the culture of those individual groups, he said.

In addition to keeping abreast of consumer trends, Schienberg and his team are keeping an eye on another movement in the industry the emergence of publicly traded and mega dealer groups. New York was probably one of the fi rst places in the country to see consolidation of dealerships. So weve been looking at what sort of services are meaningful to those kinds of operations, he said.

I think whats going to happen in the years to come is, as the industry is changing from a Ma and Pa kind of operation with single store operators to publicly traded companies and mega dealers, were going to be looking at who we are and what is our role within this industry.

Schienberg believes that Warren Buff etts, and possibly George Soros, entry into the market is a good

115 Years of Awesome!The New York International Auto Show is one of the greatest if not the greatest marketing events in the country. Where else can you go to see, under one roof, virtually every make and model thats available and be able to talk to people who are experts in those diff erent lines? And its a non-threatening environment for the consumer, said Mark Schienberg, president of the Greater New York Automobile Dealers Association, which sponsors and orchestrates the show. Theyre looking to have a good time, but theyre also looking to make decisions.

Of the 1 million attendees at the show, GNYADA estimates that more than 50 percent are 12-month intenders, those consumers who plan on purchasing a new vehicle within the next year. The association also found that a large number of those people came to the show interested in a particular model but left with additional choices (32 percent). Thats really showing that the show is doing what its supposed to do, said Schienberg. Its giving them a lot of information and helping them make some decisions on what to buy.

In its 115th year, this years show is expected to be more spectacular than ever with an estimated 60 new reveals, more than ever before. The luxury and exotic car sections of the show will see new off erings from Ca-dillac, Porsche, Rolls Royce, McLaren, Aston Martin and Bugatti, to name a few. The exotic car manufacturers are really embracing New York as the place to be and do their introductions, he said.

Manufacturers spend millions each year to bring their vehicles, exhibits and staff to New York City, but its worth it for them. This is one of the most powerful markets for vehicle sales in the country, said Schienberg, adding that all the major media outlets are located in New York City which gives the exhibitors exposure for the entire duration of the show, not just during the designated press preview days.

Over the years, the NYIAS has evolved into a hybrid auto show a mix between a show for the public and a trade show for people in the industry. GNYADA decided years ago to reinvent the show making it more than just putting cars on carpet, explained Schienberg. A series of roundtable and panel discussions, sympo-siums and forums are organized around the show each year. This years Automotive Forum, co-sponsored by J.D. Power, NADA and the New York International Automobile show, will feature a keynote speech by Warren Buff ett on how industry and economic conditions will shape the future of automotive.

Press days at the NYIAS are April 1 - 2 and is open to the public from April 3 -12 at the Jacob Javits Center in New York City.

CONSTANT CHANGECONSTANT CHANGECONSTANT CHANGEsign that the future of automotive retail is secure. These are pretty smart investors, and when you see somebody like them coming into it, they know its a good industry, an important industry and one thats going to be around for a long time.

And while it may change, its still an industry that employs a tremendous amount of people in our communities and pays them extremely well. In many cases, it is the economic engine of their communities. And I dont see that changing. I think the association

plays an important role in all of that and so I think the future for the retail auto industry is extremely strong.

The Camp Jeep exhibit at the New York Interna-tional Auto Show allows the manufacturer to show off the brands capabilities in all terrains.

CBTNews.com MARCH 9CAR BIZ TODAY

3. TRUST. Similar to the fi rst characteristic, do you trust them? Do they trust you? What can you point to as an example of that trust in practice?

4. RECIPROCITY. Life and relationships are a two-way street. How have each of you displayed acts of selfl essness to benefi t the other person? The true sign of maturity is not age, but rather when we accept that it is not about us. Success comes when we accept and realize its about them! We must learn to move from I to we.

5. MUTUAL ENJOYMENT. Relationships require spending time together. Do you enjoy them being around you? Do they enjoy your company as well? People dont care how much you know, until they know how much you care. It may be clich, but it is certainly the truth.

Moving to a more collaborative approach means that managers (leaders) need to move towards their people versus waiting for them to come to you. We must make the leap of faith that they are capable of getting the job done. Encouraging them to stretch to their potential is part of our job as the leader. Believing in your people before they have proven themselves is the key to motivating people to reach their potential.

Taking the time to invest in your people is the best way to ensure your dealerships success. Your level of success will be determined by those closest to you. Without their support you are limited to what you can accomplish alone.

The Law of Signifi cance states, that one is too small a number to achieve greatness!

So work to identify those people around you who are both capable and motivated to learn what it takes to rise to the next level. With you as their guide, there is no limit to what you can accomplish together. Provide the vision and pour into the team and watch them help make the impossible happen!

For the past several years, dealerships have struggled to achieve full staff . The formula to attract and retain top talent continues to elude many operators in our business.

The solution lies in accepting that the answer lies within an audience that our industry unfortunately has diffi culties connecting with the under 32 crowd. Some folks prefer the millennial label, lets just be practical here, its candidates under the age of 32.

One of the dynamics that we must examine is the continued use of the command and control model for operating todays dealerships. It has been the dominant model for the past 30 plus years and, to be candid, has served our industry well, which is probably why so many are reluctant to let it go.

In order to provide the type of experience customers want, should we not fi rst examine the employee experience fi rst? Gallups Q-12 employee satisfaction and engagement survey tells us that only 30 percent of U.S. workers are actively engaged. One reason for this may be the responses to the questions on the survey related to their organization/dealerships valuing their opinion.

In a command and control model, team members opinions are viewed as irrelevant. I am the manager, I am in charge and if I want your opinion I will simply give it to you. Harsh, but how many dealerships continue to operate under this antiquated philosophy and culture?

The journey to create a more appealing work environment for the next generation of workers begins

by applying a more collaborative approach when operating a store. Creating a team structure can help foster the type of interaction and interdependence that connects your people. In turn this helps reduce employee turnover and increases both employee and customer satisfaction, and who doesnt want that?

John Maxwell identifi es success as being able to connect with others by establishing solid relationships. So how do you know if you have built solid relationships with your team?

Look for these fi ve characteristics in those relationships:

1. RESPECT. Do you respect this persons opinions? Do they respect yours? If yes, then how do you show them that respect?

2. SHARED EXPERIENCES. Have you been to the mountain top together? Have you endured the fi res of hell and come out the other side? When was the last time you did something together outside of work?

LEADERSHIP

By taking time to invest in your employees, you increase your chances of slowing down the revolving door. BY KIRK MANZO

Moving from Command and Control to Collaboration

Believing in your people before they have proven themselves is the key to motivating people to reach their potential.

As a nationally recognized speaker and professional trainer, Kirk has conducted hundreds ofin-dealership programs nationwide and was a featured speaker at the 2008 NADA Annual Conven-tion in San Francisco. As a certifi ed member of the John Maxwell Team, Kirk facilitates mastermind groups, in-dealership workshops and coaching services based on Maxwells strategies on leadership and communications. Visit his website at Manzogroup.com.

KIRK MANZO President of The Manzo Group

WORDS TO HELP IMPROVE COMMUNICATIONS WITH THOSE AROUND YOU:The least important word is: I

The most important word is: We

The two most important words are: Thank you.

The three most important words are: All is forgiven.

The four most important words are: What is your opinion?

The fi ve most important words are: You did a good job!

The six most important words are: I want to understand you better.


Je Cowan is now on CBT Automotive Network!

2015 DMSC Will Focus on Strategy and Process

The 5th Annual Digital Marketing Strategies Conference is slated for April 12-14 and will feature presentations from representatives from Google, Twitter and Facebook who will be sharing their latest marketing platform updates. Also, top dealers from around the globe will be participating in panels to discuss the future of automotive retailing.

If 2015 is the year that auto dealers take back control of their dealership, they must be able to inspect and manage their web presence, said Brian Pasch, one of the workshop and general session leaders of the conference. While its great to have a marketing team that knows online marketing strategy, executives can-not lead a dealership, in a digital age, without understanding their own online marketing KPIs.

The three-day event is an executive-level conference designed to assist auto-motive owners and managers with creating a market-dominating digital mar-keting strategy and sales process. Workshops and keynote speakers will con-centrate on the most successful digital marketing strategies and processes that should be implemented in the dealership.

All workshops and panels are intimate, highly engaging and fi lled with rich content, said Pasch. The DMSC program is geared to the dealership that wants to fully understand digital strategy and stay ahead of their local competition. This years conference, which is limited to 100 attendees, will be in Californias Napa Valley.

This design enables workshops to be engaging and interactive, according to Pasch. This dealer-centric approach allows for personalized attention and ex-amples directly from attendees. Each workshop is focused on one central team,

providing dealers with a clear vision of their priorities on each topic. Workshop topics will include industry benchmarks and KPIs your team

should be measuring, cutting-edge sales processes and the latest digital mar-keting strategies your team should be employing. Attendees will return to the dealership not only ready to embrace digital marketing, but to lead the charge in the entire marketing strategy, said Pasch.

Other workshop and general session leaders are Sean Stapleton, Darren Hay-good, Cliff Banks, Patrick Kelly, Glenn Pasch, Marc McGurren, Phil Aime, Lisa Salabritas, and Thomas Gage. For information or to register for DMSC, visit dig-italmarketingstrategies.org.

Brian Pasch of PCG Consulting

When you are through changing, you are through. Bruce Barton

March already! The NADA Show in San Francisco is history. The boss just got back from the first 20 Group meeting of 2015. Everyone knows what that means there are going to be changes, new initiatives and programs that need to be implemented. Its your job, as the manager, to make sure your team implements effectively and that the new initiative sticks.

IMPLEMENTATION EXECUTION - ADHERENCESo is the Knowing Doing gap alive and well in

What you can do to narrow the knowing doing gap when implementing change in your dealership. BY TOM KUKLA

IMPLEMENTING CHANGES That Stick With Your Dealership Teams

LEADERSHIP

dealerships today? Ernst and Young found that 66 percent of corporate strategies are never executed. Kaplan and Norton stated that 90 percent of well-formulated strategies fail due to poor execution. Jack Welch said, In real life, strategy actually is very straightforward. You pick a general direction and implement like hell. So, as a leader, what is your first reaction when you are given a new initiative to implement? Your initial reaction holds a clue as to how your team will react.

Our dilemma is that we hate change and love it at the same time; what we really want is for things to remain the same but get better. Sydney J. Harris


Change is inevitable. Implementing that change is tough in any organization. Change fosters growth. Growth fosters opportunity. Just think about how the Internet has changed the way your dealership advertises. Execution is simple in theory but diffi cult to put into practice.

Implementation is all about execution in short executing the plan. Consistently executing the plan creates Adherence Adherence to the plan. Good plans are important but if there is no execution (and thus no adherence), its just a plan. Lee Colan introduced a logical Adherence Equation in his book Stick With It.

In the equation, Adherence comes from a combination of focus, competence and passion. If any of the three are missing, adherence is nonexistent. No adherence means no growth.

So how do we develop adherence and foster needed growth from new initiatives? Or, how do we implement the plan for implementing the initiative? The three critical factors in the equation above drive the execution of that new initiative on your dealership team. All management levels need to participate in the following three steps.

STEP 1 BE LASER FOCUSED ON THE INITIATIVE ITSELF This may seem obvious but it is the main reason for the knowing doing gap. We know the importance of the initiative, and how it will aff ect the dealership but we dont follow through; we fail to follow through completely; or we give up too soon. So what can you do to get your team laser focused?

Set the vision. Simplify it put the vision in easy-to-

understand terminology, then break it into steps.

Give them the why behind it. Help your team visualize what it looks like

when it is done right. Keep it in front of them (make it visible) by

using a tote board, emails and signage. Set expectations and hold them accountable.

Celebrate when it is executed correctly.

Coaching Tip on Focus: Managers need to break down new initiatives into a step-by-step process that team members can visualize and follow easily. For example: Your dealership is introducing a new initiative of enhancing how every customer whether in person, online or over the phone is greeted, responded to and followed up on. Team members need to know the role they will play and your expectations.

Pull the team together, lay out the new initiative and set expectations.

Break their role down into three things that must happen during every customer interaction.

Start each day reinforcing the why behind the new initiative.

Publically praise when initiative is executed eff ectively. Ask your manager to participate

Privately coach when initiative is not executed thoroughly.

Dont let them off the hook.

STEP 2 TRAINING AND EQUIPPING THE STAFF WITH THE SKILLS NEEDEDDont assume your team knows how to execute. With many new initiatives failing due to poor execution, you can assume team members may not know how. Use this as a training and leadership opportunity to build new skills and reinforce existing skill sets.

Train the vision by setting the example. You get good fi rst. As the leader, you should be the strongest member of the team. Be very specifi c about what good looks like.

Train everybody consistently. Tap into top performers and let them lead

the training. Try teaming people up. Train them again on the why. Hold everyone accountable. Tell them when

they get it right and coach them when they get it wrong. Be systematic.

Coaching Tip on Competence: Managers cant assume everyone will know how to execute a new initiative, especially if it involves customer interaction. Keep your teams skills sharp by:

Identifying and describing each team members strengths in customer interactions and how those strengths add value.

Conducting weekly training sessions so initiative stays top-of-mind. Keep training fresh by modeling and changing trainers. Involve your manager in the training.

Provide feedback to team members that is immediate and only focused on the initiative.

Tie positive behavior into results.

STEP 3 - BE PASSIONATE ABOUT ITEveryone has a role to play in the success of the new initiative.

Every single soldier must know, before he goes into battle, how the little battle he is to ght ts into the larger picture, and how the success of his ghting will in uence the battle as a whole. Field Marshall Bernard Montgomery

Own the vision. Be intentional. Paint the picture by doing your part. The

team will return to you what you give to them.

Make it fun. Make it important. Tell them the why once again! Connect their eff orts to the end goal.

Coaching Tip on Passion: Managers cant assume everyone will own the vision without a little help. How you present the new customer interaction initiative, and make it live, makes all the diff erence. Get your team on board and consistently implementing by:

Painting the picture, weekly, of the deeper purpose behind the initiative. Follow it up in writing, showing progress of the teams activities and consistently describing whats in it for them.

Going beyond minimum expectations. Create new rituals that are tied to initiative.

Constantly looking for positive performance and praising often.

Its up to you. When leading your team through change or a new initiative, communicate openly and honestly. State the facts but always explain the why. Express your belief that this new initiative is needed to grow and prosper. Change is hard so dont just communicate what is changing but also communicate what is staying the same. Be available when team members have questions or get stuck. Remember, praise goes a long way to making sure the changes you are trying to see in your dealership stick.

Tom is a highly experienced Leadership coach, speaker and trainer. Prior to founding Credere Leadership, Tom spent 38 years in retail and medical sales, sales management and management and leadership development. He developed a world-class management-training program from the ground up in the highly competitive pharmaceutical industry that served hundreds of sales and marketing colleagues. As a John Maxwell certifi ed coach, teacher and speaker, Tom o ers organiza-tions management and leadership workshops, seminars, training and coaching in order to guide the personal and professional growth of managers of all levels and tenure. You can reach Tom at [email protected].

TOM KUKLA Principal and Founder of Tom Kukla Credere Leadership

KAPLAN AND NORTON STATED THAT 90 PERCENT OF WELL-FORMULATED STRATEGIES FAIL DUE TO POOR EXECUTION.


You could be wasting 20 percent of your marketing budget. In fact, I think for some dealers this percentage might be higher. My opinions are based on what I see when I am brought in to provide clarity to the leaders of dealer groups. What would lead me to make this claim? There are a few reasons but I will boil it down to three areas so I can explain my reasoning and provide possible solutions.

If you are reading this article, you are already ahead of 70 percent of your competition. When the statistics show that reading levels are at an all time low, working to educate oneself shows a real trait of success. Which leads me to my first point:

LACK OF CONSISTENT EDUCATIONToo often automotive leaders are overwhelmed they have multiple responsibilities to their business, their financial institutions, their employees, their families, etc. Being pulled in a million directions leaves little time to analyze all of the marketing spend and execution to ensure they are being the most efficient they can be. Add to this, a lack of time to educate oneself on the newest ways to improve efficiencies. This begins the trickle of wasted dollars. If you do not understand what your vendors are doing, how can you hold them accountable for maximizing results?

The biggest hurdle for many dealers is understanding the realm of digital marketing. It is still a bit unknown. The rules change as fast as ever so it is easier to ignore something or skim the surface than really owning the information to propel your business forward.

There are many ways to educate yourself beginning with reading articles on the topic. Attending conferences, webinars or classes are incredible ways to learn from some of the best educators, as well as from other dealers who can share their struggles and successes with practical applications. Whoever from your dealership attends these sessions should be required to bring this information back to the

group, teach it to everyone and see how it could be implemented in their day-to-day business model. If you do not require this step, then you are adding to the trickle of wasted marketing budget.

This lack of education pairs well with the next aspect of wasted marketing dollars:

VENDOR REPORTING AND TRANSPARENCYMany vendor reports are way too complicated and contain way too many touch points that mean nothing to the dealer in a practical sense. In some ways this is an outgrowth of point No. 1, because if the dealer does not understand certain metrics, then vendors rely on the volume of information to demonstrate their efforts.

Vendors should streamline their reporting to show actionable data to the dealer. Dealers themselves do not have to be experts but they should be demanding that their vendors explain in laymans terms what they are getting for their marketing spend each month and how it is helping to achieve their marketing goals.

This applies to all vendors traditional agencies, digital, process trainers and sales trainers, as well. If vendors cannot explain in simple terms what they are doing and show you the results, then they either need to fix this or be replaced because this lack of transparency is another contributor to wasted marketing dollars.

Paying close attention to three key areas could prevent you from wasting 20 percent or more of your marketing budget. BY GLENN PASCH

Make the Most of Your Marketing Dollars

MARKETING

THE BIGGEST HURDLE FOR MANY DEALERS IS UNDERSTANDING THE REALM OF DIGITAL MARKETING.


The third area of wasted marketing dollars comes from:

THE LACK OF ACCOUNTABILITY TO YOUR CUSTOMER PROCESSESDealers spend thousands of marketing dollars to drive traffi c to the web, phone, email or showroom. I cannot fathom why more dealers are not aware of the ratios of engagement or execution of their processes. They know fi nal sales and service numbers; they know what they spend. But they are not really diving into the step-by-step journey of their customer and understanding how the lack of inspection is adding to this wasted marketing eff ort.

Lets say my fi rst two points are maximized. By not paying attention to this third point, you allow staff to waste your money and then have the gumption to ask for more leads. Crazy when you think about it.

Track your eff orts. Set higher standards for utilization of the CRM. Make sure your team is tracking everyone who contacts you. Make sure engagement levels, and appointment levels are as important to you as front-end gross. Solid processes can make up for struggles with points one and two, so maximize this by hiring a trainer or just holding folks accountable to the process you have in place.

Finally, I am asked many times as I travel and teach: is there a way to increase sales without spending any more on services or vendors? Is there a way to be able to monitor everything, especially when it changes so much? Who can you trust? Which leads to my recommendation:

HIRE A TRUSTED ADVISOR

What is lacking at the leadership table of many groups is someone dedicated to fi nding the effi ciencies mentioned above. At times there are individuals who may manage one of the silos, but in my opinion there needs to be someone who manages this budget of money many times not insignifi cant and lead in the creation and execution of the marketing strategy. They need to make sure they have the right vendor mix and then hold everyone accountable. They need to make sure the internal processes are set up and then hold the people accountable.

My recommendation is that you may have to look outside of your current team for this person or hire a company to help you in the short term. This advisor benefi ts from not being in the day-to-day running of the company and they have the training to be laser focused

on reports to know what needs to happen to improve performance.

If you have someone internally, then make sure that you are not loading up their day with tasks that pull them aside. This is a multi-million dollar business and maximizing effi ciencies should be a top-of- mind priority. Get the help you need instead of letting this continue. Twenty percent is a large amount of money to be wasting each year.

Glenn is a trainer at heart. He is a highly sought-after speaker, writer, coach and operations strategist, as well as a customer service fanatic. He has spoken throughout the U.S. and Canada, educating audiences on a variety of topics including business leadership, change management, digital marketing and the impact of this new technology on culture, business and society. Visit the website www.pcgdigitalmarketing.com

GLENN PASCH CEO of PCG Digital Marketing

SET HIGHER STANDARDS FOR UTILIZATION OF THE CRM. MAKE SURE YOUR TEAM IS TRACKING EVERYONE WHO CONTACTS YOU.

areas, including a caf, is a collection of fashionable LED troff ers that blend into the ceiling and linear bands of light integrated within it. Throughout the service center, suspended pendants and blade-like fi xtures also help cut a striking aesthetic while reducing costs.

Meanwhile LED High Bay fi xtures deliver crisp, uniform light across the shop fl oor, detail bay and parts depart-ment, meaning mechanics wont be left in the dark whether under the hood or in the pitwhere LED lighting is also installed.

A comparison showed that Mer-cedes-Benz of Fort Mitchell will use about 40 percent less lighting energy with LED than with conventional technologies, saving $46,000 a year.

When we looked at the energy savings were getting, and that its really the right thing to do for the environment, its just a win-win for everybody, Moreno says.

ADDITIONAL BENEFITSIn addition to energy savings, the potential for reduced maintenance costs are another benefi t of longer-lasting LED technology. These maintenance savings are particularly attractive when it comes to replacing diffi cult-to-access lamps, such as those

W hen it came time to build a new Mercedes-Benz dealership in Fort Mitchell, Ky., Collection Auto Group President Bernie Moreno had one goal in mind: create an all-LED lighting facility inside and out that drives the client experience beyond expectations.

Our goal was to build the greatest dealership in the world, Moreno explains. We designed the building to be intuitive here are lights that clearly guide you to each area. Every single lumen on the property is LED, from the post tops out front to the hanging fi xtures in the showroom to the lights in the service bay.

Collection Auto Group is not alone in its choice of LED lighting.

Today, auto dealerships are looking for ways to reduce energy and maintenance costs while still drawing the attention of prospective buyers. And many of them are turning to LED for the solution.

By improving the quality of lighting, dealers can benefi t on both the top and bottom line. First, high-quality lighting delivers improved color rendering on the cars exteriors as well as better luminance inside the vehicles to showcase uphol-stery and interior designs. Second, reduced light levels and longer lamp life drive energy savings and lower maintenance costs.

THE ROAD TO SAVINGSAccording to the National Automobile Dealers Association, lighting accounts for 18 to 55 percent of electricity con-sumption for most businesses.

Energy-effi cient LED lighting is one way auto dealers are saving money on their lots while beautifully showcasing vehicles, adding a measure of security and enhancing the customer experience. Many dealers are becoming more aware of the importance of lighting in their lots and how the right lighting, from an oper-ational standpoint, can help drive profi ts.

There are four common lighting application spaces in a dealership where LED can make an impact by replacing various legacy technologies like linear fl uorescent lights and high pressure sodium (HPS) fi xtures: outdoor lots, showrooms, service areas and ancillary spaces like back offi ces.

At Mercedes-Benz of Fort Mitchell, Collection Auto Group uses GE Evolve LED Area Lights and Evolve LED Post Tops to illuminate its driveway and inventory. Advanced optics aim light precisely where its needed and away from neighbors yards adjacent to the property.

Illuminating Collection Auto Groups lavish showroom, inviting offi ces and captivating client

New lighting can help dealerships reduce energy and maintenance costs while creating an inviting atmosphere. BY ANTOINETTE MILETI

Driving Cost Savings with

Since installing energy-efficient lighting at the dealership, Kia AutoSport in Columbus, Ga., has seen a 20- to 33-percent increase in energy savings.

Many dealers are becoming more aware of the importance of lighting in their lots and how the right lighting, from an operational standpoint, can help drive profits.

Collection Auto Group President Bernie Moreno

LED Lighting


Antoinette Mileti leverages an understanding of retailer needs to drive strategic marketing initiatives aimed at meeting the demands of retail stores in North America. For more informa-tion on LED lighting for auto dealerships, visit GElighting.com/auto.

ANTOINETTE MILETI Retail Marketing Manager for GE Lighting

People are blown away when they come in and see the amount of lighting and the control of the lightingthe way it doesnt overwhelm, the way it spreads and provides a natural color for everything throughout the dealership, inside and outside. Monroe Lee

found in service bays. With fewer maintenance responsibilities, employees can focus on helping cus-tomers and servicing vehiclesnot climbing ladders.

Plus, installing LED fi xtures in your dealership off ers the ability to better control the lighting. Occupancy sensors and intelligent lighting con-trols can keep lights turned down until movement is detected. Dimming and on/off scheduling allow for maximum energy savings.

People are blown away when they come in and see the amount of lighting and the control of the lightingthe way it doesnt overwhelm, the way it spreads and provides a natural color for everything throughout the dealership, inside and outside, says Moreno.

For Monroe Lee, owner of KIA AutoSport, reduc-ing energy consumption and maintenance costs were driving factors for investigating new lighting solutions in a key area: dealer lots. Outdoor lighting is often the fi rst impression customers see when entering the facility, as well as one of the largest users of electricity at a dealership.

Instead of traditional metal halide high inten-sity discharge (HID) fi xtures, Monroe chose LED outdoor lighting fi xtures with timers in his new Columbus, Ga., KIA AutoSport dealership.

We tried to use energy-saving techniques throughout the whole design of this new dealership, which included energy-effi cient lighting fi xtures and timers to control when the lights are on, said Lee. The result was a 20-33 percent increase in energy savings and reduced maintenance costs after installing the new lighting fi xtures.

A CUSTOM SOLUTIONWhile there is no one-size-fi ts-all solution for the right dealership lighting, a professional lighting audit is a simple way for dealers to evaluate their current system and explore how other lighting technologies may look better, perform better and ultimately save money. When its time to invest in your dealership, consider an LED lighting solution as a fi rst step to improved operations savings.

When it came time to build a new Mercedes-Benz dealership in Fort Mitchell, Ky., Collection Auto Group President Bernie Moreno had one goal in mind: create an all-LED lighting facility inside and out that drives the client experience beyond expectations.

LED High Bay fixtures deliver crisp, uniform light across the shop floor, detail bay and parts department, meaning mechanics wont be left in the dark whether under the hood or in the pitwhere LED lighting is also installed.


In 2001, Bryan Hardeman opened Wholesale Parts Direct, a separate parts distribution center, which sells to independent automotive service shops and handles distribution for almost 70 different manufacturers. We basically outgrew the dealerships parts departments so we moved to a new 50,000-square-foot warehouse, said Will, explaining that most of the growth is in aftermarket sales. A couple of years later, Continental opened a new 30,000-square-foot, state-of-the-art collision center.

A unique feature of Continental Auto Group is its onsite insurance agency, which not only insures its employees, but also is available to customers and non-customers alike. Since all car buyers are required by law to have auto insurance, it made sense to offer the convenience of that service to its customers. Some of them need to upgrade their insurance or have different insurance needs on the spot, said Will. Were able to help them out and capitalize on that. The agency, which provides coverage from multiple top-rated insurance carriers, offers home, commercial and life insurance in addition to auto insurance.

Since joining the family business in 2007, Will has focused on the companys e-commerce efforts while Gennys attention has been in F&I practices, procedures and training. According to Will, shes experienced great success in that area increasing the auto groups PRU by $250 in about four years. Their father is still active in the company, but most of the day-to-day management is in the hands of the siblings.

Aside from their fathers tutelage, Will and Genny have a vast pool of mentors, many who have been with the company long before they were born, to help them learn the ropes. With more than 500 employees, the average length of employment at the group is an astounding 17 years. Chris Hirsh, for example, service manager for the Mercedes brand joined the company 42 years ago, and Jim Olmstead, president of First Texas Honda, first starting working at Continental in 1969.

Theres a reason Continental Auto Group has landed

DEALER PROFILE

Outstanding employee benefits and a focus on a creative selling environment lies at the core of the auto groups success. BY CAROL WHITE

CREATIVITY SELLS CARS at CONTINENTAL AUTOMOTIVE GROUP

Unlike a lot of second-generation dealers, Will Hardeman and his sister Genny Hardeman had other intentions than joining the family business. After graduating from the University of Texas in economics and Southern Methodist University in finance, respectively, the two set out to carve their own career paths. But after a few jobs and a few bosses in the outside world, the two came home to nest, so to speak, in the dealership group their father, Bryan Hardeman, had built in Austin, Texas.

It took a few years to realize how great the opportunity is in automotive, said Will, 33, who is a managing partner, along with Genny, 31, of Continental Automotive Group. Gennys twin sister, Joy, attended the University of Texas Law School and currently lives

in Washington, D.C. In 1978, Bryan Hardeman, at the age of 29, purchased

Continentals Honda and Mercedes Benz dealerships, making him the youngest authorized dealer for those brands in the country. That same year, he opened Continental Collision Center. Over the years, the group bought and sold several dealerships. Today, it owns four dealerships in Austin First Texas Honda, Mercedes-Benz of Austin, Austin Infiniti and Austin Subaru along with three collision centers, three wholesale parts distribution centers and its own insurance and in-house marketing agencies. It recently partnered with BMW of Corpus Christi its first venture outside the Austin city limits in eight years. We are in full acquisition mode, looking to grow whenever we see a deal that we see value in, said Will.

Whipping up lattes and cappuccinos for the customers in his dealerships cafes is one of Will Hardemans favorite things to do.

Under the leadership of the brother and sister duo, Will and Genny Hardeman, Continental Automotive Group is looking to appeal to the next generation of shoppers and employees.

At 120,000 square feet, First Texas Honda is the largest Honda dealership

in the United States and includes a showroom large enough to showcase

100 new and pre-owned vehicles.

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unwilling to make the transition. Thats the hard part about transitioning your business model, but it has paid off for the dealership, according to Will. Our product specialists like it because its very easy to sell cars, and our customers like it because they realize theyre getting a good deal, he said, pointing to all the five-star reviews it receives almost daily. I believe that is the absolute best way to retail automobiles. Our customers love it and our employees love it.

It may have taken him a few years to appreciate the opportunity within the family business and make the move back to Austin, but its one that he says has allowed him to be an integral part of the companys commitment to its community through its many philanthropic endeavors. Austin has been a wonderful place to grow up, go to college and do business all in one. We want to support the community that supports us and has made us successful. We want to give back and perpetuate that cycle. Thats what we believe.

I think having fun at work is one of the foundational pillars of employee satisfaction, said Will, who added that turnover within the auto group is lower than industry standards. Enjoyment is directly tied to productivity and success. One thing I always say is if you dont like doing something, youre unlikely to work hard enough at it to be successful.

Creating an employee-centered culture not only helps the auto groups retention rates, but it also works in its favor when recruiting new talent. Wills strategy is to align the company to appeal to the next generation of employees. If I were starting a career as a salesperson or a service advisor, would I want to come to work here? Would I look forward to coming in everyday and feel good about it?

The companys move to a one-price, no-haggle sales process is another factor in the employee happiness quotient. Currently, the Honda store is the only one that has a no-haggle sales process, which was implemented in 2011. I think that, whether you like it or not, thats the way the industry is moving. So its not a question of if but when (the other stores) will be there, said Will. Theres no way to just dabble, or dip your toe in the water with no-haggle selling. You have to go all in and you have to have buy-in from management. They have everything to do with the success or failure of it.

Thats not to say that First Texas Honda didnt have its share of pushback when the concept was first introduced. They lost employees who had spent their entire careers perfecting their sales skills and were

on the Austin American-Statesman Best Places to work list for four straight years. The secret, according to Will, is his companys long-standing philosophy of doing whats right for the employees, and they will do whats right for our customers. That includes offering outstanding benefits, such as 100-percent company-paid medical, life and dental insurance; a matching 401K; an employer-paid onsite wellness clinic; full access to the companys in-house marketing agency; and an employee vehicle purchase assistance program, to name just a few.

These perks, uncommon in most dealerships, certainly add to the employee-satisfaction index, but the fun factor has a lot to do with it. Will gives all the credit to his managers for maintaining a fun atmosphere in the dealerships. For instance, every hour on the hour the product specialists and managers at First Texas Honda drop to the ground to plank for 60 seconds, which is a fun team-building and physical activity in which even the customers have been known to participate.

The Honda dealership also boasts a permanent stage in its showroom where the musical members of its staff frequently entertain shoppers. And to attract current and potential customers, the dealership throws elaborate customer-appreciation parties complete with food, fun, music and dancing. Olmstead is no stranger to the stage and is always willing to entertain the crowds at these events, many of which bring in about 700 guests.

ENJOYMENT IS DIRECTLY TIED TO PRODUCTIVITY AND SUCCESS. ONE THING I ALWAYS SAY IS IF YOU DONT LIKE DOING SOMETHING, YOURE UNLIKELY TO WORK HARD ENOUGH AT IT TO BE SUCCESSFUL.

The companys parts distribution center, which sells to independent automotive service shops, handles distribution for almost 70 different manufacturers.

LEFT: Every hour on the hour employees at First Texas Honda drop to the ground to plank for 60 seconds. Leading the team is Winthrop Winnie Ellsworth, new cars sales manager at the dealership.

RIGHT: Jim Olmstead, far right, president of First Texas Honda, with Courtney Audain, product specialist, at the dealerships Night Fever customer appreciation party last year. The house band, Bee Gees Songbook, is made up of members of the dealerships staff including Audain, Tim Boss, Mike Robberson, Steve Carter, Jeff Tveraas, David Road and Paul Mills.

Continental opened a new, 30,000- square-foot collision center in 2003.

Mercedes-Benz of Austin has been named an Official Mercedez-Benz Best of the Best Dealer, and consistently ranks as among the top 10 dealers in the country in certified pre-owned sales.

Chris Hirsch, left, service manager for Mercedes-Benz of Austin, has been with Continental for 42 years. Pictured with Hirsch are members of the parts team Kate Pittman, Hector Arellano, and Parts Manager Lee Godfrey.

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business page. Why? Because Ive seen too often where a dealer or manager has left the social media up to someone, that person is no longer working for them and then they cant access their own page.

The best thing to do is when creating an account to run your business page with, always use an email address with your business domain name so you have control over it. Once youve got your business page created, you can add trusted users including your own personal profi le if you have one as admins on the page.

FACEBOOK FOR SALESPEOPLE AND ENTREPRENEURSFor a salesperson or solo-entrepreneur, such as an independent wholesaler, the answer to Do I need a separate Facebook account for business? is more complex. Its mega-important to identify what you feel comfortable with. Social media should be a positive experience for you. If it isnt, it will show in how you connect and engage.Here are a few scenarios to help determine if you need a separate Facebook account for business:1. If youre new to Facebook and dont know what to do, start with a personal pro le. Create an account using your email address. Fill in all your contact information and remember to put your work contact info, not your personal info. That way, you can make your proile public without worrying about your personal data. When your proile is pub-lic, youll be found by customers and prospects.2. If you have a robust network already on Face-book with your personal pro le, then continue leveraging that account. Be sure to present your-self as you would if you were at your desk or place of business. Its important to be deliberate in any social setting. You wouldnt show up to a for-mal affair in shorts and lip-lops, right? This is wherepersonal branding comes in handy. It helps you know how to present yourself online.3. If you really want to drive leads and sales, create a Facebook business page for yourself and utilize Facebook ads. Youd be surprised what you can do with $100-200 a month in ads budget. What were talking about now is social selling leveraging social media to network for referrals and sales. This option is for the more advanced user who should have his/her personal branding in place, along with a website and a blog.More and more, consumers are searching for quality. Theyve experienced a great customer expe-rience from brands like Amazon and Zappos and they expect the same from you. Look at your market-ing through your customers eyes. Master Facebook with the goal of delivering the customer experience theyre searching for. Chart your best course of action and go for it!

Im not trying to be Captain Obvious here but unless youve been on a deserted island somewhere, you should know by now that Facebook isa valuable tool for marketing yourself and/or your dealership. Salespeople leverage it to stay in touch with customers and network with new ones. Dealerships make it part of their marketing to generate leads and sales. Almost anyone can benefi t from Facebooks reach and its crazy to ignore it. I get asked a lot, Do I need a separate Facebook account for business? and the answer is not as simple as it seems.

Everyone talksabout Facebook. The media loves to hate on Facebook. So its hard to know for sure whether the answer is yes or no. The answer to Do I need a separate Facebook account for business? depends on whether youre a salesperson, a solo-entrepreneur or a dealership.

Its important to understand what your goals are fi rst before venturing out onto any marketing platform. Always put strategy before tactics.

FACEBOOK FOR BUSINESSAs a business participating on Facebook, youre required to engage Facebook as a business page. Its actually against Facebooks terms of service to have a personal profi le for a business. You wouldnt want to do that anyway because a personal page doesnt get access to Facebook ads, which can drive traffi c to your website and get you leads.

You will however, need a personal profi le in order to act as administrator on your business page. All Facebook business pages are administered through personal accounts. Its best to create an administrative Facebook personal account for the

MARKETING

When deciding whether to have separate Facebook accounts for business and personal, its best to examine your marketing goals. BY KATHI KRUSE

Strategy Before Tactics When It Comes to Facebook

Be sure to present yourself as you would if you were at your desk or place of business. Its im-portant to be deliberate in any social setting.

Kathi is an automotive social media marketing expert, blogger, speaker, coach and author. Her pas-sion for the car business spans a 30-year career managing successful dealerships in Southern Califor-nia. Kathi is the author of Automotive Social Business How to Captivate Your Customers, Sell More Cars & Be Generally Remarkable on Social Media. Her Kruse Control blog is the leading automotive social media blog in the U.S. and Canada. Visit her website at KruseControlinc.com.

KATHI KRUSE President of Kruse Control Inc.


2015 Automobile Protection Corporation-APCO. MOTOR TREND is a registered trademark of TEN: The Enthusiast Network Magazines, LLC. All rights reserved. 2015

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to happen as effi ciently as possible, without seem-ing rushed or sluggish. Dont waste time with small talk; the customer is not there to get to know you or talk about their life. Show the buyer you are there to get down to business as quickly as you can and then they will naturally tell you about themselves.

4. SHOW PRICE; DONT TALK PRICEWell before you get to the presenta-tion, disclose the price of the product the customer has shown interest in and then off er alternatives to that, one higher and one lower. Dont wait for the buyer to ask for a price. Be proac-tive and proud of your price by initiating the price discussion up front so that while you are presenting the product the buyer is not wondering about it the entire time. We did this for a dealer and immedi-ately recognized a doubling of demonstrations and write-ups.

5. BREAK YOUR DEMONSTRATION INTO FIVE PARTSTwenty years ago you had to show the entire product. Today the buyer has done so much research that this may be unnecessary with some of your buyers. Break your presentation into fi ve parts, and at the end of each segment of the demo ask, Have you seen enough to make a deci-sion? There is no reason to continue to show parts of your product once the buyer is ready to buy. You can do a complete presentation at delivery. You should constantly check for opportunities to allow the buyer to purchase your product and not sell beyond that point. This shows the customer your concern for their time and your own. This is the point when you stop selling, get the buyer to take action, and have the critical exchange of value that I talk about in the Closers Survival Guide.

6. STAY SOLD ON YOUR OFFERYou were likely convinced by your par-ents, teachers and other mentors that getting your way is a bad thing. If you believe in your company, your product and yourself then stay sold on that and insist the buyer do business with you. That means you must repeatedly insist on the business, make sure a manager meets the customer before leaving and always follow up and keep following up no matter what. When you are completely sold you never give up.

Lets face it, your customer is doing more home-work than ever to buy a car and your product has less of a margin and more competition than ever. You must improve your skills so that you, not the product, are exceptional. This means you must get in a regimen of daily sales motivation, daily sales training, practicing, drilling and rehearsing and keep sales solutions within arms reach during your workday.

Be great because nothing else pays (much).

Time is killing your sales. The longer you spend with a customer today the less likely you are to make a sale and to make any money. I am happy to prove this to you if you like, as we have tracked over 2 million automotive transactions and have validated that when you increase your negotiation time beyond 12 minutes, the gross profi t drops by 75 percent

Your customer values time more than money unless they dont have any. Those with no money and cant buy will spend all day with you but those that can buy and do have money will not. If they have to spend all day with you to get a deal done they will penalize you in gross profi t and in cus-tomer satisfaction scores.

Here are fi ve steps to help you maximize your time and your buyers by closing deals faster:

1. SHORTEN THE SALES PROCESSThe average buyer is spending up to 11 hours on the Internet doing research and only visiting 1.4 dealerships. Let the buyer know you can get this done as fast as they want or you are willing to take as much time as they like. We are using a mobile app with customers today, where the

SALES

Less Time More Pro ts

Be proactive and proud of your price by initiating the price discussion up front so that while you are presenting the product the buyer is not wondering about it the entire time.

GRANT CARDONE Entrepreneur and New York Times best-selling author

Grant, a national speaker and motivator, is a respected, highly-regarded master salesperson whose passion is to teach people how to sell themselves, their products and services regardless of economic climate. His books, audio packages and seminars provide people of all professional backgrounds with the practical tools necessary to achieve high levels of success. Follow him onTwitter @grantcardone.

salesperson is able to talk payments in the greeting as a way to expedite the process. As a result, write-ups, demos and gross profi ts have increased.

2. FACE OBJECTIONS HEAD ONCustomers wont buy for four reasons: time, money, stalling or product. If you bring these points up before the customer does you will remove obstacles, unspoken objections and get the buyer communicating and increase buyer confi dence.

3. BE UP FRONT AND CLEAR WITH YOUR INTENTIONSThe goal is to introduce yourself and make a good impression to set the buyer at ease you want to set the stage for the entire sales cycle

Todays car shoppers have already done their homework, so starting them out at Point A is a waste of time. BY GRANT CARDONE


determine what success this year means and then you need a step-by-step plan in place to get you there.

If you delivered 1,000 new units last year, whats your goal for this year? Whats realistic? What can you really plan for and accomplish? That depends.

Sure, I keep talking about training and management because thats what we do. The point to make here is: if youre not training and not really managing salespeople now but youre willing to, the only limit at all is managements level of commitment to make it happen. Two plans of action are:

Plan A If you did get your education on how to lead a team of salespeople to the Super Bowl, if you did train them on their core skills, and if you did start managing them and their activities daily this year, delivering 2,000 units by the end of the year is very realistic, and the plan is easy to implement and follow.

Plan B If you dont choose to go all out on training and managing, and if you plan to just keep running ads and grinding out deals, thats your choice, so then a 10 percent to 20 percent increase is still realistic. You just need to carefully pick your targets.

Too many of us were led to believe that our sales-people work for us. While that is technically a correct statement, it is not a reflection of the attitude you should have in management if you want your business to grow every year.

Our company has 48 actual employees not temps, subs or outside contractors who as a group have been with the company a total of more than 500 years. Other than the technicality of the employer/employee relationship, my managers and I dont really think of people as working for us. In order for us to grow each year, we have to become a team that works together, and so do you.

Working with your sales team requires that Im with you attitude. It requires respect, honesty,

caring and most important, it requires that you do everything in your power to make them successful. The best teams have the best coaches working with them. Youre the coach of your team. If you want to develop a winning team, just spend the same time with your team and each person coaching and training them as you would with every kid if you were coaching a little league or hockey team.

What are your goals this year? How many units will you sell, how much gross will you generate, what level will each of your salespeople achieve this year, how much repeat business will you generate, what percent of your business will come from repeat and referrals?

To control your success this year, you have to

SALES

If you want to develop a winning team, spend the time and effort coaching and training them. BY JOE VERDE

MANAGEMENT-DRIVEN LEADERSHIPMANAGEMENT-DRIVEN

LEADERSHIPIts better to have one person working with you than it is to have three people working for you. Unknown

Youve got to be careful if you dont know where youre going, because you might not get there! Yogi Berra


Joe has been in the car business since 1973. He has been the eight-car guy and the 38-car sales professional, a manager and dealer principal. His company was founded in 1985, and under his lead-ership, is consistently rated the No. 1 automotive sales and management training company for pro-ducing immediate and long-lasting results for its customers. He has authored several books including his newest Pure Profi t: Double Your Net in Just 90 Days. For a free copy, visit his website at JoeVerde.com or email him at [email protected].

JOE VERDE President of Joe Verde Sales & Management Training Inc.

So if you plan to go all out with A, read my new book, Pure Pro t: Double Your Net In Just 90 Days ASAP. If you choose B, read, Pure Pro t: Double Your Net In Just 90 Days ASAP. Whether you choose A or B, my free book is the quick and easy solution.

In every dealer/manager class we off er, we always ask, How many of you used to work at a dealership that cut your pay? Dozens of hands go up on this because nobody wants to work hard, succeed and then be punished for their hard work and success. If youre planning to grow this year, the opposite has to happen. By using Levels in sales, you will help good salespeople earn the recognition and money they deserve and prevent below average salespeople from getting bonuses which by defi nition are for extra, not less, than average sales they dont deserve. (See Box)

Wont your top salespeople complain? No, your actual top salespeople will be very excited because theyll be listed on top in your levels charts.

If you pay people less than they earn, theyll soon be earning less than theyre paid. (Or else they quit.) Unknown

How to Use Levels in SalesLEVELS ARE BASED ONLY ON ROLLING 90-DAY AVERAGES (CURRENT AVERAGES).Clearly spell out how many units are sold for each level. For example:

Level 1 = 1-10Level 2 = 11-15Level 3 = 16-20Level 4 = 21-25

Use the same ve-unit increments I just spelled out theres a reason. Start listing top salespeople on the board by their current averages, not by how many units they sold last month.

RULE: Stop counting no-eff ort house deals in their selling averages. On those, they didnt sell anything, so give them the money, but not the unit count. Those do-nothing house deals make peoples averages look better than they are and qualify for bonuses they didnt earn.

Use Levels for all your monthly bonuses instead of hat tricks, 12 units, etc., and see a rush to improve theiraverages. For example, put an amount based on the level a salesperson achieves.

Level 1 = $0Level 2 = $500Level 3 = $1,000Level 4 = $2,000

In this example, a salesperson who is or becomes a Level 3 would get $1,000 bonus for that month. Print your levels charts monthly and post them in the sales o ce and training room. If you will, youll see a dash for the cash and for the recognition that goes with Levels.

5th Annual

April 1214, 2015Napa Valley Marriott Hotel & SpaNapa Valley, CA

Your Blueprint For Greater Success

The 5th Annual Digital Marketing Strategies Conference (DMSC) is an executive level conference for dealership owners and managers. This intimate event allows dealers to amplify their investment in education and focus on strategy and process, allowing instructors and speakers to work with all dealers in attendance.

Our workshops are hands-on, highly engaging and rich in content. All workshops are geared for the dealership employee who wants to fully understand digital strategy and stay ahead of their local competition.

Call Carrie Hemphill for personal registration assistance

908-601-6475www.DigitalMarketingStrategies.org

Advanced Admissions and Ticketing Discounted Room Rates Available Advanced Registration for VIP Wine Events

Who should attendDealer Principals | General Managers | Sales Managers | Marketing Directors

DMSC 2015 will include:Executive level workshops not sales pitchesBreakfast, lunch and cocktail receptionsExcellent peer networking opportunitiesLatest digital marketing strategiesDealer round tablesHigh quality contentDealer led workshops

CONFERENCE HOSTED BYCONFERENCE HOSTED BYCONFERENCE HOSTED BYCONFERENCE HOSTED BYCONFERENCE HOSTED BYCONFERENCE HOSTED BYCONFERENCE HOSTED BYCONFERENCE HOSTED BYCONFERENCE HOSTED BY

One of the most necessary things to accomplish in sales is to be different from your competition. For some, this may not be so easy. In automotive sales, this is especially important since most salespeople have been trained from the same playbook that has been used for decades. It is hard to change the mindset that says, Thats the way we have always done it. By utilizing new and fresh ideas, as well as having a well-structured sales process, you can distinguish yourself from what customers have come to expect when they call a car dealership to speak with someone in sales.

My main priority over the years has been to create new training methods and materials that, when utilized, will advance the skills and success of those who use them. As you know, if you have read my book, Secrets of Inspirational Selling, my unique sales techniques are designed to distinguish those we train from the typical salespeople working in todays dealerships. By being unique and different from what customers have come to expect, a salesperson can increase their results substantially and impact their customers in a way that brings them back whenever they or someone they know needs a new vehicle.

Proper training in taking phone-ups opens the door for effective dialogue with the customer and increases your chances of getting them into the showroom. BY DAVID LEWIS

Does Your Staff Sound Like Everyone Else?

PHONE-UPSSALES

BY AVOIDING TALKING ABOUT PRICE, CREDIT, DOWN PAYMENT OR TRADE-IN, YOU CAN FOCUS PRIMARILY ON QUESTIONS AND STATEMENTS THAT WILL NOT RAISE THE CUSTOMERS DEFENSIVE LEVELS.


David Lewis is the president of David Lewis & Associates Inc., a national training and consulting company that specializes in the retail automotive industry. He is also the author of four indus-try-related books, The Secrets of Inspirational Selling, The Leadership Factor, Understanding Your Customer and The Common Mistakes Automotive Salespeople Make. Visit his website at DavidLew-is.com.

DAVID LEWIS President of David Lewis & Associates

Though it is not common knowledge among car salespeople, the most reliable source for buyers is the phone-up. Reliable industry statistics have shown that phone-up customers become buyers more consistently than those just walking onto the lot in their search for a vehicle. Many salespeople tend to prefer the walk-in customer and that is certainly understandable. When someone comes to your dealership, you want to make sure they are greeted as quickly as possible. However, learning how to properly handle a phone-up should be at the top of your list if you are looking for ways to increase sales, profi ts and income. This makes phone-up skills a critical part of the car sales tool kit.

To begin with, it is important to understand why the phone-up customer off ers so much potential for making a sale. Todays shoppers are highly informed. With more than 80 percent of them having Internet access, it is highly likely that they already know what you sell. Also, if they have spent any time on your dealership website, they probably have specifi c information on some of the vehicles in your inventory. Subsequently, by calling your dealership, they have in a sense, already partially qualifi ed themselves for you.

With that knowledge and the three known priorities that buyers have when they are looking for a vehicle, you can now focus your eff orts on giving them reasons to make an appointment to come to your dealership. A shoppers three main buying priorities are the right vehicle, the right salesperson and the right dealership.

Now, heres the problem: Most salespeople have the right goal in mind when they take a phone-up, but they rush to it within the fi rst 30 seconds of the call. They immed

Documents

Car Biz Today Magazine March 2015 Issue