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

1. Get your own personalized Louisville Slugger Baseball Bat free! pg.15
.biz
Herb Chambers Sells 600
January 2004
Vehicles Online
You Are the CEO
How to Forecast
PERMIT NO 879
Your Success
LOUISVILLE KY
Demo Drives for Success
PAID Louisville, KY 40202
US POSTAGE Suite 202
PRSRT STD 756 South 1st Street
a division of Systems Marketing, Inc.

4. manager
I N S I D E
driventeam operation
uccessrevenue automobil
6 The Art and Science of Managing Your Managers
solutions
Steve Hiatt
7 You Are the CEO Mark Tewart
profitprofessional
10 Demo Drives for Success Brian Ankney
11 Sales From the Internet: Search Engine Optimization
sales
Dennis McDonough
12 May the Forces Be With You Brian Manzella
14 Implementing Change Within Your Sales Team Terry L. Isaac
16 eDealers of the Year: How They Did It Patrick Luck
18 Herb Chambers Sells 600 Vehicles Online Sean Wolfington
22 How to Forecast Your Success George Jackson
23 The Effectiveness of Jingle-tising Jeff Fishel
24 A Word From the Coach, Part 1 Joe Verde
26 Managing Your Time Brian Tracy
28 Now Is the Time to Plan Fran Taylor
Cover Image: Herb Chambers, featured this month on pages 16 and 18
A cure won’t just save children.
Mary Tyler Moore
It will save childhoods. International Chairman
These kids live with 4-6 insulin injections
daily. Plus, they face the threat of blindness,
heart attack, kidney failure and amputation.
Their only hope is research. The Juvenile
Diabetes Research Foundation is closer than
ever to finding a cure. Help us help them. Call
1.800.533.CURE or visit www.jdrfe.org dedicated to finding a cure
Psalms 37:3-5 Patrick Luck, Editor & Publisher
inventory
Success Driven Solutions
• pat@autosuccess.biz
Trust in the Lord, and do good; so
Susan Goodman, VP of Operations
you will dwell in the land, and enjoy • susan@autosuccess.biz
security. Lindsay Porter, Copy Editor
Take delight in the Lord, and he will 756 South 1st Street, Suite 202 • lindsay@autosuccess.biz
give you the desires of your heart. Louisville, Kentucky 40202 Courtney Hill, Advertising Services
• courtney@autosuccess.biz
Commit your way to the Lord; trust in
Toll Free: 877.818.6620 Kelley Humkey, Advertising Services
him, and he will act. • kelley@autosuccess.biz
Facsimile: 502.588.3170
In God We Trust Web: autosuccess.biz
Thomas Williams, Creative Director
dealer
• thomas@autosuccess.biz
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 or
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© 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
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Postmaster: Send address changes to AutoSuccess Magazine, 756 South First Street, Suite 202, Louisville, Kentucky 40202.

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6. sales and training solution
SteveSteve Hiatt
By Hiatt
The Art and Science
of Managing Your Managers
To get your team these meetings are designed to do that. take care of this for you. They want the team
on the right track Once these meetings become normal, to succeed. We aren’t always too subtle in
you have to set the your managers start to speak up and ask these meetings and the managers really get
course with your questions or even challenge. Some of the into keeping everyone accountable.
managers. As an best ideas and management strategies can
owner, GM or GSM, you have to be willing come out of these types of forums. Steve Hiatt is the General Sales
to be involved in setting the course if you Manager of Hiatt Pontiac GMC, Hiatt
want to have specific results. You can also hold people accountable Outlet and Hiatt of Auburn. He can be
publicly for what they agreed to or their contacted at 866.265.5616, or by email
The people you hire for sales management assigned goals. Many times other managers at shiatt@autosuccess.biz.
and finance are often self-starters, that is
why you hired them in the first place. These
team members are often not interested in
correction, they are usually giving it, which
makes coaching them harder. It is your job
to get everyone on the same page.
Steps to keep your team on track:
Have a plan.
Have any plan, as long as it is written down
and measurable. Know what you want from
the team management, and be prepared to
tell them specifically what you want. Your
managers will run their own course without
you having something specific for them.
Express it.
Let the management team know what
you expect from them. Give them results
you will demand. Whether units, gross, or
employee retention, if it isn’t written for
them don’t expect them to know.
Adapt and adjust.
Don’t just accept the results or the feedback.
Use it for change. Figure out what is going
right or wrong and then plan activities to
change the results. Have a consistent tool
for measuring; it can be the statement, a
daily operating control or floor log, just
check it on regularly scheduled intervals.
Praise.
Give positive feedback. Be genuine and
sincere. You don’t need to do back flips on
the showroom floor, simply find something
they did and tell them. Don’t just say
“Good Job!” Address something specific so
you don’t sound trite. Try something like,
“Sue, I watched how you handled Mr. and
Mrs. Johnson’s objections in finance, and
you did a good job of building value.” This
way your employee knows you are sincere,
because you sited the situation.
See us at NADA Convention
Have a forum.
Get together with your managers on a regular Booth # 5463
and planned basis. Pick a day, set time
aside, hold phone calls and interruptions.
You need time to communicate and
6 successful solutions at www.autosuccess.biz

7. sales and training solution
Mark Tewart
By Mark Tewart
You Are the CEO
Are you the CEO of follow-up to the point that it is being done
your company? If while you sleep or are on vacation.
you’re a sales person,
and you answered no Have you set up affiliate programs with
to this question, think other businesses to share customers and
again. To be successful you must have a CEO provide an introduction to one another?
mentality. All successful sales people view Example, “Who does business with whom I
themselves as a business within a business. want to do business with?” Ask that question
Never forget that the company you work for first to think of businesses that you can set
writes and signs your check, but you fill in up reciprocal agreements with to provide a
the numbers. Always take responsibility for value proposition to their customers with
everything. You are the CEO. enough leverage so they will want to call,
fax or email you to get what you sell.
What does a CEO do?
First of all, a CEO designs a marketing Most businesses utilize one-stage marketing.
strategy. How do you get your business? This requires running an ad and asking
Walk-ins, in-bound phone calls, repeats, someone to buy. For many sales people,
prospecting, networking, referrals, be- this is expensive and not effective. A better
backs, affiliate marketing programs, strategy is to form two or three stage
database mining, database swapping, marketing techniques. You are asking a
niche marketing, seminars, websites, customer to respond that they are interested
email responses with auto responders and and want more information. Here are some
sequential auto responders. Do you have at examples: Give a be-back cd to every
least one strategy for utilizing each one of customer who does not buy and ask them to
these? Many people may not even know play it on the way home. The cd should have
what many of these items are. The bad news two to five minutes of information that thanks
is that you are way behind the top businesses them for the opportunity and provides them
in the world, but you can catch up and even with specific reasons why they should buy
pass the most productive sales people with your product from you, at your dealership.
dedicated strategy and smart actions. Give the customer an incentive to call you
back. Arrange with a local restaurant that
Top sales people gain and maintain their you will provide a coupon to every customer
results through many avenues beyond walk- who shops or services with your dealership,
in traffic. When you are new, you spend 80 an offer for two-for-one at the restaurant.
percent of your time gaining new customers In return, ask the restaurant to also reward
and 20 percent maintaining them. As each their customers by giving each customer a
month goes by, your goal will be to reverse coupon with their bill that provides a special
the time used to 80 percent maintaining offer from you, with enough leverage for the
current customers and 20 percent gaining customer to respond for more information.
new ones. To do this, you must develop a Provide seminars for local groups on the
marketing web with multiple streams of subject of, “How to buy a vehicle and not get
lead generation. Lead generation = dollar ripped off.” Do you know where the last 10
creation. customers who have bought from you work
and how you can set up automobile buying
If floor traffic dries up, you will have an programs with their employer? If you let
excuse not to sell vehicles. From now on, your mind expand, your wallet will follow.
excuses are not allowed. What is your
strategy for walk-ins? Do you have a You have two choices, you can use excuses
process? Does anyone besides you follow up like, “My managers won’t let me do
with unsold customers? If you TO in person anything,” “I don’t have the time,” “I have to
why not TO on the phone? Are you utilizing make money right now,” or a million other
monthly planners or productivity software excuses. Or, you can think of your business
that allows you to automate your follow- as a business and become the CEO with
up of sold and unsold customers by phone, a long-term, committed strategy to grow
mail and email? Do you have a monthly expeditiously.
newsletter or, better yet, an email newsletter
that reaches your customers unobtrusively
and at zero-cost? There are companies that Mark Tewart is the President of Tewart
will set up auto responders with pre-set Enterprises. He can be contacted
messages to be sent at certain intervals to at 866.429.6844, or by email at
your email list. This automates some of your mtewart@autosuccess.biz.
january 2004 7

10. sales and training solution
Brian Brian Ankney
By Ankney
Demo Drives for Success
In the November through your test drive route. Encourage customer through service. Sell your service
issue, we discussed your customer to hit the accelerator and department. Mention the exceptional quality
added value for your take turns quickly. The test drive builds the of work and continuous training. Now as
customers so that desire that will get this deal today. you pass the service writers, introduce your
they can feel good customer to their service writer. Get a card
about buying at fair gross profits. Now If there is a spouse, get the spouse to drive for your customer and explain that their
we will cover how to add value for your also, insist, “I would not be comfortable service writer has different days off than
customer during the demo drive. selling your family a car that you, yourself, you, so they will always have someone they
don’t feel safe and confident driving. know to help them with any of their needs.
The demo drive. Just try it out and make sure that in an
Your customer is in the passenger seat, and emergency you would be okay driving it.” The trade appraisal.
you are in the driver’s seat. You pull out on Once the spouse has driven, get the main After the service walk you should return
to the street and quickly accelerate. Now driver back in the driver’s seat. Get them with your customer to your desk. If there
is the time to use the information your excited, again. Solicit four or five positive is a trade, collect the information needed.
customer gave you during step two, the statements from them and move on to the If your customer wants to go with you to
qualifying step. Demonstrate the features trial close. get the VIN and miles, do not insult their
your customer told you that they wanted car. Everyone wants to get the most for
in their next vehicle. Show them the dual The trial close. their trade. Make statements like, “Boy this
climate control, rear air, louder stereo and/ Every sales person must design their own is a nice car. It has gone a lot of miles for
or seven-passenger seating. Prepare them personal trial close. It should look and feel you. You sure got your moneys worth on
to experience the intense acceleration, natural. You must be confident in your this car.” Let them feel good about their old
award-winning braking distance and words, and never forget this step. This is car so they can buy their new car from you.
turning radius. Pull your customer into where you get your customer’s permission
a parking lot and stop the car. Finish to sell them a car today. Reiterate your Now you have all the information needed
demonstrating the bells and whistles and customers needs and wants and how this to desk a deal and a customer that is ready
then rapidly accelerate to 15-25 mph and vehicle fulfills and exceeds each and every to buy a car. Remember that a sale is like a
hit the brakes. Use statements like,”feel one. Use, “You said,” statements like, “You tower. Every step is built on top the previous
that acceleration,” and “it’s great to be said that this stereo is exactly what you steps. If you do a weak demo and don’t sell
able to stop this quickly in an emergency.” want and that trunk will definitely fit work a certain car, your customer will flop out
Cut the wheel all the way, and drive the car stuff. You said that the driver’s seat moves of negotiations and go home to think/shop
in circles. Comment to the customer on the and sets up just the way you want and that your competition because any payment is
vehicles impressive turning radius. this is definitely the color. I agree with you. too much for a car that is not the one. The
I think that we have found your next car. same is true of the trial close. If you do a
Your customers are looking for a vehicle There is just one thing left to do. I guess weak trial close, your customers will want
that will fit all of their children and get them the only thing standing between us doing to think it over and leave. Your manager
to work and pull their fishing boat. Lots of business today is price…like it is with most needs a strong trial close to set them up
vehicles fit these needs. Some cost more and people…Right?” Your customer will either for the T/O. Ask for help in the areas you
some cost less than yours. Some have better say yes, with some small stipulation, “Well feel weak. Your managers can role play and
leases and lower incentive rates. Some have your manager is going to have to give me help you improve your income.
access to lenders that buy deeper than those $5,000 for my trade,” or give you a firm
you work with. objection*. * Firm objections are objections that mean
that even if a deal can be reached that
Desire will sell this car today. Desire will Take your customer’s yes and their it cannot be done today or tomorrow. If
get the higher payment, longer term or stipulation and turn them into a second trial you believe you can’t get it today…you
additional $1,500 down. Desire will get close statement. “So if we could get all the are right, no matter what the objection.
your customer to call their grandmother into figures, including your trade, agreeable, You need help, so finish the drive and
the store tonight to cosign. Acceleration, YOU WILL TAKE DELIVERY OF THIS service walk and go to desk for help. We
braking and turning will create this desire. CAR TODAY?” You need a yes here. Your will discuss firm objections further in an
You have demonstrated each during the customer will say sure or give you a firm upcoming article.
drive. Now exit the vehicle, and invite your objection*.
customer to drive with a statement like,
“Alright, I guess my turn is up. Now it is The service walk.
your turn to drive. You are going to love the As your customer drives back into the
way this car drives.” Have your customer dealership, direct them to park in the sold
accelerate rapidly and brake. Have them row. Exit the car and say, “Follow me.”
cut the wheel to see the incredible turning Walk ahead so that your customer must Brian Ankney from AutoClick can be
radius. Ask your customer, “What do you hold on to the keys. Show your customer contacted at 866.247.9587, or by email
think?” Get them excited. Now instruct them into the service department. Walk your at bankney@autosuccess.biz.
10 visit us at www.autosuccess.biz

11. marketing solution
Dennis McDonough
By Dennis McDonough
Sales From the Internet:
Search Engine Optimization
There are many If they are slow to load, either modify Do the home page first and then each
things you can do the pages to be faster, select another additional page. Getting listed in the
to help your website page or look for a new host. Speed Google database usually takes four
be listed among the is very important to your Google to six weeks but can take over three
top search engine ranking. months. Be patient, don’t submit your
rankings. site pages every day, only submit
5. Work these top five phrases into individual pages every thirty days.
Search engines include Google, Yahoo, the website titles, ‘meta’ tags, ‘alt’
MSN, AOL, All the Web, Find What, Alexa tags and content. Really look at 7. Monitor your words and phrases on
and Teoma, to name a few. These sites fall the content. A good search engine the Google site. Do monthly checks to
into two classes, spiders or directories. optimization firm will make copy see where your site ranks.
Spiders use programs to search the Internet suggestions to you.
to find sites through links. Directories take Search engine optimization is not a
submissions, taking only the sites that ask This optimization needs to be done on one-time fix. Monitoring and updating
to be listed. Most directories require you a page-by-page basis. Do not repeat a your site pages as the ranking goes up
to pay a subscription fee to be listed in phrase just to get it used, if it is too and down should at least be done on a
them. Most spiders are free, but you have frequent in the content your ranking quarterly basis.
to get the spider to find your site. Google will suffer. Do not try to get all the
is the biggest spider, and Yahoo is the phrases in one page; that does not
biggest directory. help either. Dennis McDonough is the President of
Bit-Concepts. He can be contacted at
Google is the most popular search engine. 6. After completing the modifications, 877.354.1998, ext.202, or by email at
It is a spider and does not cost to be listed. submit each modified page to Google. dmcdonough@autosuccess.biz.
Google provides the results for over 75
percent of the searches done today on the
Internet. Yahoo, AOL, MSN and others
use Google for some of their results.
Google has special rules to be followed
for an effective listing on their site. These
rules change on an irregular basis and
should be reviewed regularly.
Log 200-500% more opportunities!
The time to start thinking about search
engine optimization is when your site Leader in Showroom Traffic,
is being developed. A good website
developer will understand Google’s rules
Lead Management,
and incorporate them into the site design. and CRM Software
Track all outgoing real-time showroom & desking control
Use these seven steps to achieve a good phone activity
ranking on Google: internet lead tracking system
1. Identify the words and phrases 2-way active DMS integration
that your customers would use to find
you. A single word does not usually complete in-store training
work well; there is just too much Minimize data entry
competition. with license scanner drivers license scan, worksheets
& credit bureaus
2. Check the phrases for popularity,
and select the top five most searched.
3. Enter phrases on the search track more
engines to see if they return sites for
The Higher Gear Group, Inc.
companies like yours. bring back Hoffman Estates, IL 60195
4. Select specific pages to feature
more tel 866.873.0029
fax 847.310.3196
each phrase. The pages you select sales@highergear.com
should have static content. Use the
home page and directly link from the
close www.highergear.com
home page. Check these pages for
their load time. They should load in
more call for a FREE consultation and demonstration
less than 15 seconds on a dialup line.
january 2004 11

12. golf solution
Brian By Brian Manzella
Manzella
May the Forces Be With You
There are many the the grip end of the shaft, into the wall, pivot forward, around your spine, you can
movements that a the clubhead would go down the wall and ‘drop’ the club right on the ball (pic 3). Or
player must perform forward toward the ball and target (pic 1). drag it down on the ball. Or push it.
in an efficient golf
swing. But there Dropped, pulled or pushed STRAIGHT The second reason you need the rotating
are only two forces that the golfer has down, the clubhead will go forward also ‘around-ward’ force is for speed. Simply,
to create. They must create a downward if there is a pin at the grip end of the shaft. the faster you unwind (RPM’s) the faster
force and a rotational or, what I like to The key is that there is only a downward the clubhead will go.
call, an ‘around-ward’ force. Poor players force at work in this ‘pinned’ example.
add directional forces such as forward and In the golf swing there are two pins: the The ‘around-ward’ move most closely
upward in a vain attempt at making the primary one at the left shoulder where approximates a left-handed frisbee toss.
ball fly toward the target. If you can learn the left arm attaches, and a secondary Just go out to the store and buy a basic
to create the “Two Forces” and eliminate one at the left wrist. So with or without model frisbee and practice throwing it left
the unnecessary other forces, you can wristcock, the golfer gets two for one with handed. Just stand 90 degrees to the target,
simplify your swing and maximize your the correct application of a downward like your golf stance, unwind and fling that
distance and accuracy. force. The clubhead will go downward frisbee. Just like in the golf swing, ‘over-
and forward. acceleration’ of the left arm, by the left
Let’s start with the downward force. arm, is a disaster. Allow your torso to drag
Doesn’t there have to be a forward force? The ‘around-ward’ force is necessary for your left arm around and flail your left arm
The answer is no. If you put a golf club two reasons. One reason is transportation. off of your chest (pic 4).
against a wall, horizontal to the floor, and Transportation? Yep. If you make a
drop it, it falls straight downward due to ‘normal’ backswing and let the arms/ The only difference in the frisbee pivot
gravity. The same happens if you pull it hands/club unit just fall from the top, and the golf version is the plane. The
down the wall or push it down the wall. It the clubhead will hit the ground several frisbee plane is horizontal to the ground,
falls straight down. But, if you had a pin in inches behind the ball (pic 2). But if you and the golf plane is on an incline. You
1 2 3 4
12 subscribe today at www.autosuccess.biz

13. continued
could throw the frisbee toward the ground, tilting’ as the release occurs (correct pic 6, to understand the two forces in the golf
on the target line, a few yards forward on incorrect pic 7). swing and you should be able to apply
the ball, to get the feel. The change in them to your swing effectively. Just as
planes necessitates the tilting of your spine This ‘around-ward’ rotation of the golfer, important is the elimination of the forces
both more over and slightly to the right, called the pivot, creates a resultant that are not either downward or ‘around-
just like in the golf swing (pic 5). outward force, just like the one created ward.’ The reason the great players look
by twirling a rock on a string (pic 8). It like they are doing less than you are, is
The combination of the downward force should be obvious that poor players, with because...they are.
and the rotational force can be exercised their upper body forward lunges and lifts,
by skipping rocks. Rock skipping includes disturb the orbit of the clubhead, much as
the right arm throw (downward on plane) any non-rotating force would disrupt the Brian Manzella is a PGA Teaching
and the ‘around-ward’ pivot with a titled twirling of the rock on a string. Professional. He can be contacted
axis. So many golfers have trouble with at 866.873.0036, or by email at
this all-important detail. The golfer must With just a frisbee, a hand full of rocks bmanzella@autosuccess.biz, or visit
be able to create this throw without ‘un- and a piece of string, you should be able www.brianmanzella.com.
5 6 7 8
january 2004 13

14. sales and training solution
TerryByL. Isaac
Terry L. Isaac
Implementing Change
Within Your Sales Team
The goals that you Allow your team to have some input on Test the process you’re changing, you will
set will result in the the new goals, it will give them a feeling gain all the support you need when you
game plan you put of being a part of the goal, and they need to show them how the change will benefit
into action. Most buy in. This business is full of self-starters them and the dealership.
of the goals you set and bringing a team together might not
will require change. For example, if your be easy. One way to get your goal across Set the standard, it’s your job to make
goal is to improve CSI, it will require a to your team is to break it down into two changes as needed for the improvement of
change in how you handle your customers phases. Start with the objective of your operations. Management is leadership, and
and will need to be evaluated to put a new goal. If your goal is to increase sales, start leadership is leading the way, not asking
plan of action in place. After the plan is with the first phase of a sale. The first phase for directions. Change is a good thing; it
laid out, you must coach your sales team is a lead, all sales made start with leads, ups, keeps your team growing and prevents
to implement the plan, it must be clear so sales calls, factory leads, etc. As you start, complacency. Sales people get into a routine
the team can understand the procedure to form your flow chart, this is a good way to and don’t increase their production, change
follow. structure your plan. Show how leads are their routine and change their results.
currently being handled and better ways of
Many people resist change because of their handling them, whether it’s sales calls with If a sales person sells below average and
comfort zone. Without change your goals a new word track or handling ups. This will you do nothing to adjust their performance,
will be impossible to achieve, if there is no increase leads. the next month the same result is repeated.
change then you will only repeat the same Implement ongoing training and coaching
results. Communication is key for getting Take one step at a time. People can’t handle to improve the production.
your team to change. You need to make a lot of change at once. It takes patience
sure you clarify the changes. The more and time to get people to change but never An excellent goal is to implement
clear the change, the more likely your stop trying, always believe it will happen. an ongoing training program for low
team is to respond. Change is a process Explain the importance of the change to performance, this goal of improvement has
and it takes time to change peoples ways. your organization and the rationale for it. two benefits.
1. It will increase sales, which is an
every day goal, and
2. It will increase retention.
Remember to use the flow chart for all
of your goals and to break them down to
communicate to your team. Have a kick-off
meeting/training session to get your plan
into action. You will need to have your
training set up over several weeks to teach
the new process. Set up training materials
to present your program in a professional
manner. This will give you credibility with
your team and make it easier for them to
follow and understand the program.
After providing the training for the change
you are implementing, you need to have
feedback on an ongoing basis. Your sales
people all learn at different speeds and might
understand in different ways. Tracking the
results of the new process is the only way
to show progress and ROI. The information
you track will be important for modifying
your plan of action.
Management must take action and set goals
from the top down. If everyone understands
the new goals and why the changes are
being made, the whole team will work
together toward improvement.
Terry L. Isaac is the Corporate Sales
Trainer for the Neil Huffman Auto Group.
He can be contacted at 866.265.4680, or
by email at tisaac@autosuccess.biz.
14 contact us at www.autosuccess.biz

15. AutoSuccess, the only sales-improvement magazine, has teamed up
with cross town Louisville Slugger to bring you the best double play
in the business. Order your 1 year subscription to AutoSuccess at our
everyday price of $75 and get your own official, personalized Louisville
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CALL TODAY! 866.269.8604

16. feature solution
Patrick Luck
By Patrick Luck
eDealers of the Year:
How They Did It
Creating a successful website is a it is our number one marketing medium. purchase program’.
possibility for all dealerships. To have The Web is our number two or number one Red McCombs: Mass bulk multi-media
an award winning website, you must source for phone calls into our dealerships. emails and search engine placement
know how to accomplish it. The dealers We know because we measure it. We sell services. We also put our URL on all ads
award winning sites for 2004 sold 60-600 over 600 units a month, we drive revenue and everything with our name on it.
additional units a month, while driving to service, parts, F&I and more. Courtesy: Search engines, email
revenue to all profit centers. A great way Tasca: Over 60 percent of our customers marketing, local markets newspaper sites
to achieve this success is to learn from visit our website before they come to and our traditional marketing.
others that are already using their site to the dealership. If the majority of our Sheehy: Make sure your website is on
sell units and drive profits. The winning customers research on the Web it makes ‘all’ dealership material and that you’re on
dealers were asked questions to show sense for us to be there. Seventy-two top of the search engines.
how they achieved these positive results. percent of our phone traffic is Web based
The interview responses are listed to help on our phone traffic reports. It is a critical Question 4: What type of people do you
with successful website techniques. marketing tool. hire? How do you train and pay them?
Red McCombs: Absolutely. We sell an
Question 1: What type of website additional 260 units a month, generate Herb Chambers: Sales people, not
should a dealer build? What are the key more sub-prime business, create a lot of computer geniuses. I can teach a great sales
characteristics? service appointments, and we sell parts person technology in a few hours, but it takes
online as well. months to teach a computer programmer to
Herb Chambers: Remember to build a Courtesy: The majority of our phone be a great sales person. We have an in-
website for your customers, not you. When traffic is from our website, and we sell an house, nine-day training program. Pay?
evaluating content, do so with the eye of a additional 84 units a month, not including The same as showroom pay.
consumer...not a dealer principal. Less the extra phone and showroom traffic. Last Tasca: We hire people that are good on
fluff than they get in the print ads but more month, we became the second biggest the phone. We use a company to help our
content including product information, Chevrolet dealer in the country and the strategy and train on the process, and we
pricing, financing, specials, etc. Web was a critical part of that success. have them in two days a month to keep up
Tasca: The site must be simple and Sheehy: Yes. We get a number of calls to speed.
built around the customers needs. A key and walk-in customers who say they were Red McCombs: Experienced car sales
characteristic is information, not just price on our site or they bring in our discount people. The best on the floor, will be the
but information that builds value in your certificate. Overall, the Web is also best on the Internet. We have phone scripts
dealership and products. We also highlight directly responsible for 250+ incremental and weekly sales meetings. They get paid
the advantages of our dealership and our sales a month, and our cost per sale is less 17 percent of total billed deal.
certified pre-owned program. than $150 which is better than our other Courtesy: People with sales experience
Red McCombs: Ease of use is the marketing mediums. in car sales, very hands on training and
key. Engage customers with an interactive support for the first thirty days. We train
experience that encourages them to contact Question 3: How can you market your them on the process, phone scripts and
your dealership. website? objection guides. They get paid on units,
Courtesy: Our goal is to create more gross, with higher percent when CSI is
leads, so we have many different ways to Herb Chambers: Your URL must simply higher.
gather customers contact information to become part of all your other traditional Sheehy: We like rookies and train them
increase our conversation ratio to ensure forms of advertising. It needs to be on all from scratch on the Internet process for
more high quality leads for less cost. Our print ads (including help wanted), radio, two days, then continue onsite training,
current conversion ratio is 21 percent. TV (if applicable), stationary, business and we work deals with them in the store.
Sheehy: Searchable inventory, pictures cards, doors, etc. Everywhere, period. Basically, lead by example. We pay salary,
of new and used vehicles, model reviews, Tasca: We have included it in all of our commissions, plus incentive bonus.
payment calculator, MSRP and invoice traditional marketing: billboards, TV, radio
price, comparisons, trade-in information, and print. We also do online marketing Question 5: What is your process
phone and location information. including email marketing, banners on for handling leads? What is the most
high traffic sites, and we dominate the important part of the process?
Question 2: Is the Web a good marketing search engines. We also market to large
medium? companies by offering them our ‘fleet Herb Chambers: Email, phone and
purchase program’ and to OEM suppliers showroom. The bottom line is to sell the
Herb Chambers: On a cost per sale basis, by emailing them about our ‘vendor appointment and follow up until they buy.
16 www.autosuccess.biz

17. Tasca: We automate a lot of the emails for them as well as we handle our Internet yet diminishing part of our electronic
a 90-day period so our people can spend leads. marketing mix. Our website is definitely
more time on the phone and selling cars. Courtesy: We handle our phone and our best source of leads, the manufacturers
Our main focus is to set an appointment. Internet leads in our BDC/Internet second and third party last.
Red McCombs: Internet sales force department, and leads are logged into our Tasca: We do not use any third party
receives the leads and then makes contact CRM system, which automatically sends leads. They have a close percentage of
within 30 minutes. Internet coordinators out multi-media emails over a 90-day two to five percent. Our website leads
continue with phone calls until they set an follow-up cycle. The goal and the process cost a lot less and have an average closing
appointment. are the same, to set an appointment. percentage of 20 percent.
Courtesy: I personally distribute them or Sheehy: We are going to apply a similar Red McCombs: I would like to cut them
automatically ‘round robin’ the leads in process to our phone leads. out, but can’t as of now. We have reduced
my absence. The most important part is our dependency on them, and our website
the phone to sell the appointment and to Question 8: Do you do any email leads have a much higher closing ratio and
follow up via email and phone. marketing? lower cost per sale.
Sheehy: Speed and answering the Courtesy: I don’t like them, but we still use
questions leads ask. Herb Chambers: Yes, regularly. It is them. Our website generates the majority
results and cost effective if done properly. of our leads, and they have three to four
Question 6: How do you handle Tasca: We have hundreds of pre-packaged times higher closing ratios. Eventually, we
pricing? What is your gross profit? multi-media emails that we send for will probably get rid of all of them. We are
different times of the year. It is the same our own buying service in our market.
Herb Chambers: We make our program as direct mail except there is no cost for Sheehy: Our best source is our own site.
more about the process and product than the mail and customers can build a car and We want to reduce third party leads to as
the price. Our average gross is higher apply for credit right from the email we few as possible, They cost more and our
than the showroom floor in the stores with send them. website has three times higher closing
Internet sales people in place for more Red McCombs: Yes, lots. It is the cheapest percentage.
than six months. way to reach the masses. Every week we
Tasca: We have a menu pricing policy. run a different special and send it to all of Bonus Question: What do you think the
We have a fair profit built into every our leads generated from the website and future holds?
vehicle. Our pricing policy is the same third party lead generators.
for a showroom customer. We pay on CSI Courtesy: Yes. It helps us attract more Herb Chambers: We have gone from
rather than gross profit. customers for a lot less cost than other selling 100, 200, 300 and, now, up to
Red McCombs: Mystery shop all of our types of marketing and within a few clicks 600 units a month. If the trend continues
competitors, and we ask for a fair profit. thousands of people can know about our the future looks great.
Our average is $1,850 per unit. weekend sale. Tasca: The dealers that sell a lot of cars
Courtesy: We don’t sell price. We sell our Sheehy: Mostly broadcast emails on and satisfies customers will win. In order
process, people and products. Also, our specific incentives or rebates. We are able to grow and stand out from the competition
goal is to generate an appointment and to capture some deals where people were a dealer needs to be successful on all
then we sell the car on the showroom. Our not ready to buy now, and it does not cost fronts: showroom, Internet, phone, BDCs,
gross is $2,200 a copy, which is the same us any money. service, parts and body shop. The Web
as our showroom average gross profit. plays a role in everything.
Sheehy: We give the exact price of what Question 9: What numbers do you Red McCombs: We have more than
they are looking for then below that give a measure? doubled our Internet business in the last
lower price alternative. Our average gross 90 days and believe that more people are
is $1,700. Herb Chambers: Everything, it would using the Web to do business. The future
be easier to write what we don’t measure. looks promising.
Question 7: How are you handling your For example, we measure lead volume, Courtesy: Dealerships will start shifting
phone leads? response time, closing percentage, cost more of their advertising to market where
per lead and cost per sale. the majority of customers start their
Herb Chambers: We have a similar Tasca: Total leads, appointments, sales, purchase process, online. Until then we
process for our phone leads. Our main deliveries, cost per lead and cost per sale. will continue to take advantage of the fact
goal with both types of leads is to sell Red McCombs: Leads, closing percentage, that a lot of our competitors don’t. We use
the appointment and to follow up until sales: daily, weekly and monthly. the Web to sell more cars for less money.
they come in. We also capture their email Courtesy: Response time, appointment Sheehy: Turning our Internet departments
address to automate some of the follow-up percentage, show percentage, closing into BDCs where we have dedicated
so each person can handle more leads. percentage, average gross and CSI. people and processes to handle all types
Tasca: All of our incoming phone calls Sheehy: We measure everything by of inbound leads along with follow-up,
run through our Customer Relationship source, by store and by sales person. renewals and other marketing activities.
Center along with our Internet leads. It is a
very similar process, and it works great to Question 10: What is your view of third Patrick Luck is the Editor and Publisher
combine them. party lead providers? of AutoSuccess Magazine. He can be
Red McCombs: Not very well. They contacted at 866.802.5603, or by email
would probably improve if we handled Herb Chambers: A somewhat necessary, at pat@autosuccess.biz.
january 2004 17

18. marketing solution
Sean WolfiWolfington
By Sean ngton
Herb Chambers
Sells 600 Vehicles Online
The following is to do to reach their goals. Some parts of sales experience and with great phone and
a summary of a the strategy they created and what you may follow-up skills. They are on the same pay
case study on Herb want to customize for your dealership are plan as the other traditional sales people.
Chambers. listed.
7. Process: Herb Chambers defined their
Herb Chambers sells approximately 2. Technology: Herb Chambers Internet process for handling opportunities
600 units per month from their Internet implemented a complete digital marketing by mapping out their process for turning
department alone. system which included a custom website leads into appointments and sales. They
that promotes all of their profit centers are selling approximately 600 additional
Digital marketing strategy generates the and drives more foot, phone and Internet units per month at a higher gross profit than
majority of their phone traffic to their traffic. The system includes a prospect some of their showrooms because they
dealership. management tool that automates a lot of do not sell price, they build value in the
the email activity so their team has more dealership, people and product, and, at the
Herb Chambers drives more revenue to
time to use the phone and to sell cars. same time, they highlight the advantages
the service and parts department through
The most important dynamic technology of doing business with them rather than the
eMarketing.
they use are the multi-media buzzmails competition.
that help drive traffic through bulk email
1. The strategy: Herb Chambers began
marketing and selling new prospects and 8. Pricing: Herb Chambers realizes that
by getting together with their leadership
by automating the follow-up of their selling cars on the Internet is not about
team to create an eCRM business plan
customers throughout their ownership giving cars away.
that outlined their goals and strategy. This
cycle. Lastly, they have offices equipped
strategy boot camp was facilitated by their
with a PC, printer and digital camera for “The mistake some dealers make is that
digital marketing vendor, and it helped
taking pictures of inventory. they sell the price rather than building
them create a detailed blueprint and action
value…in the end, if we do not ask for a
plan that outlined everything they needed
3. They purchased website addresses fair profit it is impossible to get one,” said
(URL/ISP): They purchased the URLs and Jay Gubala. “We put together a pricing
purchased all of the names they thought philosophy that is competitive but that also
customers might type into their browser preserves our gross profit.”
to find them. Here are some examples for
you to buy: www.dealernamebrand.com, 9. Training: They partnered with a
www.townbrand.com. company that initially trained everyone
in the department on the phone, follow-up
4. Marketing their website: Herb and sales skills they needed to increase
Chambers conducts bulk multi-media appointments, sales, gross profit, CSI and
email campaigns, and they are ahead of loyalty.
their competitors on the search engines.
They also add their URL to all traditional “The key to the training was to develop
media. They put it everywhere their name their skill and confidence and this is
Heard the buzz? Find out for yourself what it’s all about. CarChip
is, including their current documents, accomplished through repetitive practice,
is “a useful tool for the professional,” says one service manager. TV, radio, print ads, dealership collateral videos and hands on experience.”
“Technicians dealing with intermittent issues can program CarChip to
monitor suspect circuits, and then return the vehicle to the customer.”
material, business cards, repair orders,
license plate brackets, billboards, etc. In addition, Herb Chambers has a very
It’s affordable, so there’s no need for large deposits. And once
your customers find out about it, they may very well want one for successful nine-day training program for
themselves! Attractive packaging and full-color point-of-sale display 5. Referral service: Herb Chambers goal new hires.
help make the sale—adding to YOUR profits!
was to reduce their expenses for third party
Monitor any 4 out of 23 possible engine parameters including:
lead providers and increase their leads/ 10. Measure/manage: “You cannot manage
• RPM & engine load • Fuel trim • Intake air temp
• Throttle position • Battery voltage • Intake manifold pressure sales from their own site which costs less what you cannot measure. We measure
• Fuel pressure • Timing advance • Air flow rate and have a higher closing percentage. They everything and hold regular meetings to
• Fuel system status • Coolant temp • Oxygen sensor voltage
eliminated the providers that were not discuss our progress and ways to improve.
Plus trouble codes, freeze-frame sensor readings, speed, distance,
and accels & decels. Up to 300 hours of trip data—all for just $179!
effective and replaced them by increasing Reports give us the information we need,
Plugs instantly into OBDII port. Download to PC for their leads from their own site. In the end, the number of leads by source, response
detailed analysis and graphing.
ner
they have more leads and sales and the rate and time, appointment percentage,
Ask how YOU can become Win majority are from their site, so they cost a show percentage, closing percentage, cost
d
eere
an authorized reseller! Engin duct
Bestew Pro
lot less and the closing percentage is three per lead, cost per sale, etc,” said Gubala.
N
times higher.
TM
™
AUS0310
6. People: Herb Chambers has dedicated Sean WolÞngton is an Owner of BZ
Davis Instruments Internet sales people at every dealership Results.com. He can be contacted at
3465 Diablo Ave, Hayward, CA 94545
866.297.3152 • www.carchip.com who sell the appointment and vehicle. They 866.802.5753, or by email at
recruited people with previous automotive swolÞngton@autosuccess.biz.
18 stop by www.autosuccess.biz

19. AWN inc.
automotive warranty network, inc.
There is so much more!
Automotive Warranty Network, Inc. is the complete warranty claims
management company for all your warranty needs. We offer world
class claims management, not just warranty processing. In our
POWERTRAINING experience, we will customize the training for YOUR
TM
staff on YOUR computer system in YOUR dealership with amazing results.
With our Temp Care service, you have temporary warranty coverage for
TM
vacations, illness or just plain getting behind. Let us show you how much
we have to offer and we think you will agree, “There is so much more!”
This note is to express our appreciation for the wonderful work you did for us last month. You impressed us from
the very Þrst conversation we had with Rich to the excellent help you have been since the completion of your
PowerTraining.
Due to recent changes in warranty procedures, we found ourselves in need of immediate assistance. We called
Jaguar for a recommendation and received your names and phone number. The improvements were next to
miraculous! Unpaid warranties started to get paid by the next day. You far exceeded our expectations in every
way. Then you impressed me further with your, PowerTraining which included far more than just the Warranty
Administrator training we were expecting. The way you evaluated and held responsiblity for each step of a Warranty
repair order from start to Þnish impressed us immmensely.
The week you guys spent here was a breath of fresh air. You kept every promise you made and more. The training,
procedures and operations books you set up for us are incredible and will be invaluable in maintaining the training
you provided for us. We have already recommended your services to other service managers and will be happy to
answer any questions for any of your prospective clients.
Walter Bacall, Service Manager, RUSNAK/Pasadena
info@AWNinc.com
303.703.9143

20. ADVERTISEMENT
profit solution
Scott Scott Joseph
By Joseph
What Is Your Growth Strategy for 2004?
The growth strategy increases your with your customers through
average gross per unit because: direct mail to maintain a
• It attracts trafÞc that buys the positive relationship and to
way you sell. Therefore these motivate each customer to
There are only three ways you can buyers are more trusting and buy now.
grow your business in 2004 and only negotiate less. • Running special events such
three: • It brings in buyers who expect as “closed door sales,” limited
1. Increase your number of to Þnance through your pre-sale prices and so on.
customers dealership – which increases • Price inducements
2. Increase the average gross per your Þnance penetration.
deal • Over 40% of the trafÞc Wow, look at what can happen
3. Increase the frequency generated will have clear when this growth strategy is
of repurchase – get more titles. This makes it much optimized!
residual value out of each easier for you to Þt the
customer customer into the payment Just look at the math. Let’s keep
they want without giving up it simple and say you sell 100 cars
Recently, we introduced a completely gross. a month - that equals 1,200 a year.
new direct mail strategy to our Let’s say you average $2,000 gross
customers that focuses on all three To increase your repurchase frequency, per unit and your average customer
and delivers an incredible return the growth strategy focuses on: buys once every three years (.33 times
on investment. I’m talking about a • Communicating personally a year).
growth strategy that increases your
customer base, increases the average
dollar amount each customer spends
with you and increases the frequency Increase Increase your Increase the Total gross
your customers buy from you. your # of average gross repurchase per year
customers per unit frequency per customer
How does this unique J&L Growth .333
Strategy work? 1,200 x $2,000 x = $799,200
(current one car
(current) (current)
every three years)
To grow your number of customers
you sell each month the growth 10% Increase 10% Increase 10% Increase 33.1% Increase
strategy does three things:
1. Increases the amount of 1,320 $2,200 .366 $1,062,864
(10 more units x ($200 more gross x (customers now buy = ($263,644
quality ßoor trafÞc in your
per month) per month) a car every 2.73 years) in extra gross)
dealership
2. Increases your customer (what if) (what if) (what if) (what if)
retention rate 15% Increase 20% Increase 33% Increase 83.172% Increase
3. Increases your closing
percentage
1,380 $2,400 .442 $1,463,904
(15 more units x ($400 more gross x (customers now buy = ($664,704
per month) per month) a car every 2.26 years) in extra gross)
www.jandlmarketing.com

21. ADVERTISEMENT
profit solution
Scott Scott Joseph
By Joseph
What’s the overall Growth Strategy Testing, measuring and analyzing This powerful growth strategy teaches
philosophy? lets you determine with pinpoint people how to make the most out
accuracy, what your market wants and of their most valuable asset. They
The Growth Strategy makes use of a doesn’t want. see Þrst hand that if the mailing
lot of simple ideas that are profoundly lists are accurate and effectively
powerful and easy to use. This J&L Marketing is the only company marketed, they generate more sales
Growth Strategy philosophy is proÞt who has the capability to test every and make more money than any other
enhancement through marketing element of your direct marketing advertising approach has ever done or
leverage. efforts. We’ve invested a small will ever do.
fortune and developed a program to
What is marketing leverage? determine exactly what works best for Make the decision right now to do
you. something for your dealership, your
Marketing leverage is getting sales people, your managers and for
phenomenal better results for the Where can you go to Þnd mailing you that will produce the “deÞning
same amount of money and effort lists that generate a lot of quality experience” our other customers have
you are currently spending. One list trafÞc and support this Growth already encountered - the type of
or offer could out pull another by as Strategy? experience that will transform your
much as 5 to 10 times. The ad costs business performance and wealth
you exactly the same, but you’re This Growth Strategy utilizes as from this day forward.
getting much better results with a many as three completely different
different list or offer. That’s leverage. lists. Because there could be several
unique lists, managing these different
How testing will help you leverage lists and how they are used is critical
your marketing? to maximize your potential.
You’ll never know if you’re Because of the highly competitive
maximizing your leverage until you nature of our business, I will not
test all the factors that matter: write today exactly what lists we use.
• Test one list against another. However, if you call my ofÞce and
• One mail piece against ask for Lisa Wilson at 866.856.6782
another. you’ll discover exactly where we get
• One headline against another. these lists, how we’ll utilize them
• One offer against another. for your store and why they are so
• One day of the week, month effective.
or year against another.
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market what it wants. You have to transformed their business performance from 8:00am to 6:00pm EST and ask for
ask the consumer what they want. and wealth from that day forward. Lisa Wilson.
www.jandlmarketing.com

22. f&i solution
GeorgeGeorge Jackson
By Jackson
How to Forecast Your Success
The best way to product. Add these together for your total Every F&I forecast must be attainable,
grow individually, F&I department income. adaptable and easily monitored.
personally and Penetration levels and income averages
financially is to Step 6. can be monitored daily, if need be, and
set goals with a Divide the total F&I department by the are the best means to measure the success
complete and thorough F&I forecast. To forecasted units in Step 1 to get the F&I of the department. If you are achieving
say you want to do better and make more PRU. This is the true F&I forecast, as PRU your projected penetration levels and
money than last year is not good enough. is easier to predict and control than total income averages, then it is mathematically
(Neither is saying you want to generate dollars. impossible not to achieve your forecasted
a certain dollar amount of F&I income.) PRU. The only possible reason you would
A forecast should never be dollar based Here is how you would apply these steps not reach the total dollar goal is because
because it does not take into consideration and complete an annual forecast. the dealership has simply not sold enough
the number of units sold, it is incomplete. units. If the unit forecasts hold true, then
Here are six simple steps to setting an Step 1: Forecasted units department income will eventually take
annual forecast for the coming year. New Cars 1200 care of itself.
Trucks 1500
Step 1. Used Cars 1300
Find out how many units each sales Total Units 4000
manager is forecasting. Base your forecast
on these numbers.
This is the one way
to predict total F&I Step 2 Step 3 Step 4 Step 5
department income Presentation Contracts & Average Total F&I
and income per Levels Policies Sold Income Department Income
retail unit (PRU). Finance 70% (4000 x 70%) = 2800 $500 (2800 x $500) = 1,400,000
Step 2. Credit Life 30% (2800 x 30%) = 840 $200 (840 x $200) = 168,000
Forecast penetration Dsability 25% (2800 x 25%) = 700 $300 (700 x $300) = 210,000
levels for finance VSC 50% (4000 x 50%) = 2000 $500 (2000 x $500) = 1,000,000
and all F&I GAP 30% (2800 x 30%) = 840 $250 (840 x $300) = 252,000
products sold in the Etch 60% (4000 x 60%) = 2400 $100 (2400 x $100) = 240,000
department. Base Maintenance 20% (4000 x 20%) = 800 $150 (800 x $150) = 120,000
credit life, disability $3,390,000
and GAP on total PRU = (3,390,000/4000) = $847.50
finance units and all
other products on total retail units.
Step 3. The penetration levels and income averages George Jackson is the Director of
Calculate the number of finance deals, shown above are simply for demonstration. F&I Training for American Financial &
service contract policies, credit life and Many factors can and will influence both Automotive Services, Inc. He can be
disability, GAP policies, etc. by applying for a particular dealership or state, so your contacted at 866.280.0301, or by email
the penetration levels from Step 2 to the numbers should and will be different. at gjackson@autosuccess.biz.
forecasted units in Step 2.
Step 4.
Establish or calculate the average income
the F&I department earns every time it
sells a product or finances a vehicle. For
example, $100,000 in reserve on 250
finance deals equals $400 average reserve
per finance deal ($100,000/250 = $400).
$60,000 in service contract income for 100
policies equals $600 per service contract
sold ($60,000/100 = $600). Do this for
every product that you offer.
Step 5.
Multiply the contracts or policies from
Step 3 by the income averages established
in Step 4 to get your total dollars for each
22 stop by www.autosuccess.biz