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8. STS
TomHopkins
sales&trainingsolution
HOW TO
MULTIPLY TIME
Time is as precious workday world. I know it can be hard to Successful people in the automobile industry
a commodity force yourself to do this, but believe me, always jump on the most important thing
as money. I’ve written many articles the benefits are incredible. first. What is the most important thing that
specifically about how to make sales you should do right now? Learning to answer
(translated “making money”). Now, let’s When you are involved with opportunity that question quickly then acting on it will
explore some ways you can get more sales time, you need to be tough about it. It’s increase your productivity ten-fold. If you
productivity out of the time you have to amazing how much of our working life can have a weekly sales goal, start working on it
invest in your automotive sales career. be eaten up by trivial interruptions unless as early in the day as your potential clients
you make a conscious effort not to let that are available. Don’t wait until you take care
Everyone knows you can make twice the happen. Successful people are tough about of other things before you start selling. The
income by working twice the number the types of interruptions they allow during weight of that goal will crush you by day’s
of hours, putting forth twice the amount productive business time. They’re always end. Start doing this every morning, keep on
of effort. The secret to true success is in on the lookout for busy work and finding doing it, and you’ll soon discover that you’re
making the time you currently invest in ways to eliminate it. not worrying anymore. You’re enjoying the
our
your business twice as productive. work, you’re feeling good about yourself,
est in y
and you know you’re winning.
the se
To begin with, you must understand that
ntly inv
there are two entirely different kinds of If a challenge arises that you don’t know
cr
time. The first is opportunity time, during what to do about, do your best to come
et to t
u curre
which you achieve your goals such as up with an answer, but don’t dwell on it
internalizing information on new vehicles, too long. If you’re not satisfied that what
time yo
rue su
getting your hands, eyes and ears on those you’ve come up with is the best solution,
new vehicles and providing follow up write down how you’d like to resolve it,
service to existing clients. The second is even if what you write seems totally absurd.
king the
ccess
replenishment time, during which you Then, set it aside and commit to returning
rebuild your strength through exercise, to it later that day. Let your mind work
is in ma
recreation, relaxation and sleep. bus
ine
on other things for awhile. Then, when
ss you come back to the challenge, you’ll
twi
ce
If you can’t get the hang of switching from as
pro likely have a fresh perspective on it and
opportunity time to replenishment time, duc find a better solution. If it’s still not the
tive
you’ll soon face a period of burnout where . ideal solution, do your best in handling it
you’re neither successful nor in sound today. The longer you let challenges lie
physical condition. You’ll run out of fuel. unresolved, the more likely they are to grow
Then your flame will go out, your power into something that will be very difficult
will shut off and you’ll drop like a stone. to resolve. Just tell yourself, “I’m going to
Busy work is usually pointless stuff that handle this to the best of my ability today
People who appear to be highly productive you don’t mind doing because it’s easy, and will learn from this experience.”
often suffer flameout. Many have lost and doing it makes a marvelous excuse
several years as a result. Some have for not tackling the hard things you know Stay tough about your opportunity time.
quenched their flames so thoroughly that you should do. The key is to figure out the Don’t fritter it away doing busy work or
they never managed to get their engines best time of day each day for selling and to engaging in unnecessary activities. When it’s
going again. They gave up on their dreams focus your efforts on sales activities during time to sell, sell! But when it’s time to kick
of having a successful career. that time. Don’t do filing or clean your back and relax, do that with gusto as well.
desk during sales time. Yes, it needs to be
The dangerous part is that flameout sneaks done, but not during selling time. World-renowned master sales trainer Tom
up on you. Don’t try to fly high when your Hopkins is the chairman of Tom Hopkins
tanks are low. Touch down and refuel If you’re going to be a winner, you will International. He can be contacted at
your spirits — spend a few days away in a always have time for the tough end of your 866.347.6148, or by e-mail at
completely different atmosphere from your job because that’s what produces results. thopkins@autosuccessonline.com.
8
www.autosuccessonline.com
9. IF YOU THINK YOU KNOW A BETTER WAY TO BRING IN CUSTOMERS,
THEN YOU DON’T KNOW CHIT.
CING…
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IT IS THIS EASY!
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because we all know if we can get
them to buy service then we can get
them to buy a car. It truly is that
easy and you don’t have to do
anything but Spray and Pray.
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10. STS
D.J.Harrington
sales&trainingsolution
PLEASE STEP OUT
OF THE LINE
Processionary procession found himself nose to tail with flower pot for seven days and seven nights
caterpillars travel in the last caterpillar in the procession, forming and until they died from starvation and
long and wavy lines, one creature behind a circle without an end or a beginning. exhaustion. There was an ample supply of
the other. A French entomologist once led food close at hand and very visible, but it
a group of these caterpillars onto a rim of Through sheer force of habit and, of course, was outside the range of the circle, so the
a large flower pot so that the leader of the instinct, the ring of caterpillars circled the caterpillars continued along the beaten path.
A lot of us often behave in a similar way.
Habit patterns and our ways of thinking
GET MORE PHONE CALLS - become deeply established and it seems
easier and more comfortable to follow them
rather than accept change — even when
SELL MORE CARS! food to live by is right there.
I know if someone shouts “FIRE,” it is
automatic to blindly follow the crowd,
and many thousands have needlessly died
because of it. How many stop to ask, “Is
Custom 800® numbers are PROVEN to: this really the best way out of here?” So
many people “miss the boat” because it’s
Get higher recall rates from your radio & TV ads easier and less demanding to follow without
questioning the qualifications of the people
Improve consumer response to your print ads just ahead of us and just maybe do some
independent checking and thinking.
A hard thing for most of us is to fully
understand is that people in such a
We have dozens of powerful Custom 800 Numbers for automotive large number can be so wrong (like the
sales and service departments. Numbers like: caterpillars going around and around the
edge of a flower pot with food and life
just a short distance away). It’s sad, but
1-800-NEW-CARS® 1-800-NEW-RIDE most people are living that way. If we do
1-800-NEW-CREDIT 1-800-NEW-WHEELS a little checking, you will discover that
throughout all recorded history, the majority
1-800-NEW-DEAL 1-800-NEXT-CAR of mankind has an unbroken record of being
1-800-NEW-LEASE 1-800-PRE-OWNED wrong about most things — especially the
important things.
...and many more.
® Custom 800 is a registered trademark of 800response. | ® 1-800-NEW-CARS is a registered trademark of an affiliate of 800response.
It’s difficult for people to come to the
understanding that only a small group of
Call
people ever really understand about life,
about living abundantly and successfully.
Some people wait passively for success to
1-800-NEW-SALES come to them, like our caterpillars going
around and around, following nose to tail
today and get the thinking that other people must know how
to live successfully.
perfect number for Please remember, it’s a good idea to step out
of the line every once in a while and look up
your dealership! ahead to see if the line is going where you
want it to go. If it’s not, step out of the line.
D. J. Harrington is an author, journalist,
seminar leader, international trainer,
More Calls, More Sales, More Profits and marketing consultant. He can be
10
contacted at 866.855.5781, or by e-mail
at djharrington@autosuccessonline.com.
www.autosuccessonline.com
11. MS
JohnBrentlinger
marketingsolution
WHAT TO DO
WITH YOUR BEST
SALESPERSON
There are three get it yourself. If you want perfect
general criteria computer records every day, hire a bunch
for “best” salesperson: They do their own of computer nerds who love computers
work, they have constant high margins but couldn’t sell water in the Sahara.
and they have high volume. Those are Leave your best salesperson alone. They
the standards. We’re not talking about the don’t need you to silly-small-talk their
favorite child who skates others, who is customers, they don’t need you to call their
fed by the manager and who sacrifices customers, check their figures, desk their
margin for volume (volume is vanity; profit deals and close their sales. That’s why they
is sanity). Your best salesperson meets the are the best. Leave them alone. They will
standards and encourages other salespeople sell more and earn more, and so will you.
by his or her work ethic and example.
3. Increase their commissions. The
What you do with your best salesperson salesperson who does the most should be
determines the vitality of your dealership. paid the best. This one thing will raise
All of the other salespeople are watching the standard for all the other salespeople.
your best salesperson. If you treat your Anyone who complains about how much
best salesperson poorly, the others will not the best salesperson makes should be
aspire to greatness, and they will remain fired immediately. If other salespeople
mediocre for as long as they work for you. complain, fire them. If the person who
If you want mediocre salespeople, the writes the checks complains, fire them. If
formula is simple: Hire anyone, micro- a manager complains that best salesperson
manage everyone and train no one. makes too much money, fire them. The
salesperson who does the work and makes
What To Do with Your Best
the money should be treated like a rock
Salesperson
star. If you can’t, don’t or won’t treat your
1. Do not make them team players. All
best salesperson as your best salesperson,
salespeople are not equal. Conventional
you won’t have to worry about how to treat
nonsense about everyone doing everything
your best salesperson, because you won’t
the same way leads to mediocre madness,
have one.
ie: “We have a system and you will learn it
and follow it or else.” Oh goody, let’s all be
4. Do not make them managers. There
mediocre together. Think about a baseball
is no commission on management. All
team. Every player has different strengths
commissions come from selling a product
and abilities. They are not the same, they
at a profit. Don’t take your best earners,
are not equal, they are paid differently and
your best workers, your best examples
some are better than others. Imagine a team
to the rest of the salespeople and make
where everyone hit like the pitcher, squatted
them work longer hours for less pay, less
like the catcher and scratched like the
satisfaction and less incentive. Great
manager. That is your mediocre sales force
salespeople are great because they love to
when you try to make them all do all of the
produce, to sell and to meet the goals they
same things in the same way. That has not
set for themselves. Don’t ruin your sales
worked, is not working and will not work.
force by showing them that if they be the
Be brave enough, be smart enough, be
best they can be, they will be rewarded by
secure enough and control yourself enough
being made a manager. Let them sell, let
to let your best salesperson think differently,
them grow, let them earn.
work differently, sell differently and while
doing differently, produce great profit for
Let your best salesperson be as great
themselves and the dealership. Your greatest
as they want to be. Don’t make them
test as a manager is this: Do you have the
team players, don’t micro-manage them,
ability to lead great salespeople?
pay them more and just let them sell.
Treat them like rock stars, and the entire
2. Leave them alone. Don’t micro-manage
dealership will benefit.
them. Don’t make them follow all the
silly rules that the six-car-a-month people John Brentlinger is a sales and
follow. Silly rules make mediocre teams management trainer, executive coach
who can follow silly rules but can’t sell and author. He can be contacted
11
anything. If you want the name, address at 866.859.6504, or by e-mail at
and phone number of every prospect, jbrentlinger@autosuccessonline.com.
the #1 sales-improvement magazine for the automotive professional
12. FS
featuresolution
GET TANKED The #1 Direct Mail Cam
paign
in the Automotive Indust
ry
JimmyPeters
The current economic clim With gas prices over
ate, with banks $4 a gallon regardles
Why do gas mailers work? customers. Using a gas ma my marketing efforts s of what I was doing
tightening stipulations for The gas mailer iler will get were losing their cat
ch and my ROI was
loans and mail campaign hits a nerve. the downturn so I tur
ned on
gas prices soaring, has ma Everyone in your customers emotiona weeks ago to see if the to a longtime marketing partner a few
de effective lly motivated and y could help turn thin
marketing more importan the United States is feelin create a strong call to act have they! Jimmy sug gs around and boy
t than ever. Every g the pinch from ion. A great way gested I try out their
marketing dollar must hav high gas prices in one wa to stand out is with a follow that offers my custom new Get Tanked mailer
e maximum y or another. -up postcard ers a $50 gas vouche
impact. Banks have becom Everyone opens a gas ma to remind them that they one of our vehicles (wi r just for test driving
e very tight iler simply need to visit to have been seeing clo th no extra expense
because it offers some rel get their $50 in gas. Use to us) and so far I
lending to those with the ief at a time when se to a 4% response
480 to 559 credit a message such reps an opportunity which gives my sales
scores. These deals are not gas has hit $4 or more per as, “This is your last notice to do their job and sel
getting bought gallon. Who to stop by and pumped and our ma l product. My staff is
wouldn’t open it? rketing ROI has skyroc
without $2,000 to $3,000 take a test drive to receiv keted with us seeing
down. The hedge e your $50 gas deals make as much
as 5 or 6 grand a cop
fees of 15 to 20 percent ma certificate.” This will inv y!
ke these deals oke the fear of
very difficult — if not im The motivation is the me loss and push many potent
possible — to ssage. Fifty ial customers Clint Rainer
structure. Dealerships are dollars in free gas motivate over the edge and drive the General Sales Manag
looking for ways s people. m to your er
to increase sales from the Imagine if you put a bunch dealership. Bill Heard Chevrolet
ir marketing of big
dollars and drive in more billboards up that said, “C Union City, GA
high-score traffic ome Test Drive
that can be more easily fi Any of Our New or Pre-O Compound the effect of you
nanced. One great wned Vehicles r gas mailer “WOW!!! Get Tanked
way to do this is to increa and We Will Give You $50 and last-chance postcard mailer has delivered
se response rates Worth of Free with a voice significantly better-th great
and target your desired cus Gas!” How many people broadcast. Use a voice ma an-ever GROSSES to success and
tomer type. would respond to il broadcast My market is a tough
one, but GET TANK
our dealership.
New ideas in direct mail, this message and be on you while your sale is going on in quality traffic that ED MAILER brings
like gas mailer r lot to get that the possibilities? Well, the to remind them gets SOLD. I recom
campaigns, are helping inn free $50 of fuel? Your lot chances are not to miss out. Use a sim mend it for your next
ovative dealers would be a mad that, even with the marke ple pre-recorded direct sales event.”
achieve up to a 5 to 10 per house. The message would t in its current phone message asking the
cent response. motivate tons of condition and gas prices m to come to
people. The problem with sky high, you your dealership and take
the billboard is could very likely have a rec a test drive and Michael Mancano
that you cannot target the ord month at pick up their $50 gas certifi General Manager
individuals you your dealership — just lik cate and tells
want to visit your dealershi e many other them of the specials you Honda City
p. You simply dealerships have been abl have going on.
cannot target the exact dem e to do by using There is no way for you to Chicago, IL
ographic you gas mailer program campai lose with a
want to have visit your dea gns. properly planned and imple The get tanked mailer
lership with mented gas I did with Jimmy gave
any form of mass media mailer campaign. response as well as gre me a tremendous
advertising such With this mailer, you sho at gross per copy. I ran
as a billboard, newspaper uld target people $4218 a copy
, television or with a 580 to 679 credit sco and had a 2% show rati
o. Thank You”
radio. It is important to rem re who have The bottom line is you hav
ember that you 70 to 99 percent of their aut e to make sure
can generate tons of floor o loan paid that you get ups on your
traffic to your off. These are the people lot who can buy, Barney Lopez
dealership in any market whom the banks and that is why you need General Sales Manag
with the right are willing to finance. Th to make sure Cloverleaf Chrysler Do er
message and call to action ey have had their your lists are less than 24 dge Jeep
. vehicles for awhile, and the hours old and
y’re ready to go are targeted to the criteria Decatur, AL
home in one of yours. Th you can sell.
Now, think if you take thi ese motivated and When the market is hard,
s highly effective able buyers are the ones wh we must be more
call to action that solicits om you want aggressive to make sure we
an emotional to visit your store. You wo get our share; “With the economy
response and desire from n’t be struggling ask yourself if you are doi the way it is to be ho
your target to hang these deals on Mo ng what you anything was going
to work the same as nest I wasn’t sure if
customer and condense it nday morning need to do, or are you jus I was wrong as Jim it did in days past bu
into a form of or calling people to unwind t standing by? my Peters has prove t
advertising such as direct deals you with the Get Tanke n to me once again
mail. With direct can’t get done. You will jus d piece I did that I
can always depend
mail, you can specifically t have happy my advertising comp
target your any to give a boos on
desired customer, a custom customers driving in you t to my monthly sa
er the banks will r cars. Jimmy Peters is the pre les.”
still buy. Imagine the sales sident of Big Time
numbers from Promotions. He can be Robert S. Cook
co
a showroom full of emoti With any campaign, it is
important to stand 866.850.6926, or by e-m ntacted at General Sales Mana
onally motivated out and use emotion to mo ail at ger
customers who can buy a tivate your jpeters@autosuccesson Brewbaker Motors
car. What are line.com.
Montgomery, AL
13
12
13. STS
DalePollak
sales&trainingsolution
CHALLENGING THE CORE
INVENTORY CONCEPT
OK, I’m going to However, the truth is that the used car do what my friend has done at his Infiniti
go out on a limb market place, by definition, is anything store? I think that the answer lies in the fact
to challenge a conventional dealership but steady and, in fact, is extremely that we are all more comfortable operating
notion. I’m really troubled by the concept unpredictable. There are hundreds of in a zone of comfort and familiarity. Think
of “core inventory.” I’m not saying that factors that are at play in our environment about how hard it would be for someone
each store doesn’t have a certain natural that influence consumer’s purchase very knowledgeable and familiar with the
traffic profile based on its brand, location preferences and they are anything but Infiniti to say, “there might be something
and community, but I am suggesting that steady and predictable. Fluctuating gas better out there, and I’m gonna give it
the notion of a “core inventory,” while prices, interest rates and weather patterns a try.” It’s a lot easier for us to go with
appealing and comforting, is fool’s gold. are just a few causes that constantly the inventory that we know, rather than
befuddle those that attempt to stock venturing out and taking the risk associated
The idea of “core inventory” suggests inventory today, based on what has worked with buying something different.
that there is a fixed profile of used vehicle in the past.
inventory that produces optimal results. The good news for the industry is that there
In other words, if you stock certain types For example, every day, we are all watching is now technology that can analyze any
of vehicles, you’ll be well on your way to gas prices skyrocket. There couldn’t be market and tell a manager, at the level of
success. This notion makes the assumption any environment that more dramatically year, make, model and specific equipment,
that the automobile market place is steady highlights the fact that the theory of dealers which are the hottest vehicles at the
and predictable. Without the assumption stocking based on their “core inventory” moment, based on volume and/or gross.
of steadiness and predictability, one could is just plain wrong. If any dealer today This takes much of the risk and uncertainty
not legitimately suggest that dealers should stocked their lot based on their past core out of the equation. So if you haven’t seen
stick to a defined core of inventory mix. inventory, they’d be purchasing gas this, you need to. In my opinion, it’s the
guzzlers and, quite possibly, avoiding the only way to stay in tune with the market.
purchase of today’s hot selling, gas-sipping
vehicles. It seems insane to keep doing the As uncomfortable as it is, we need to let
same things and expect different results. go of our security blanket or, in the words
of Thomas Friedman, our “olive tree”
Today, I spoke to a highly successful used and accept the fact that, in the words of
car director of a large multi-franchise Bob Dylan, “times, they are a’ changing.”
organization. His comments made We must embrace uncertainty and accept
me realize that the absurdity of “core the fact that what worked last year, last
inventory” goes well beyond the issue of quarter or last month may not work today.
gas prices. He said that, as an experiment, This means that we must keep our finger
they stopped stocking used Infiniti’s at on the pulse of the market place and take
their Infiniti dealership. They experimented our cues from it in “real time” rather than
with high volume, off-brand vehicles, such from history. Our present inventory must
as Impalas and Malibus. I asked him if always reflect the market at the moment.
he was sure he knew what he was doing, If gas prices are way up, we have to dump
and he told me that they were selling like gas guzzlers in favor of compacts. If
“hotcakes.” we’re experiencing unusual amounts of
snowfall, we must quickly respond with
He said that we all get hung up on the more 4-wheel drives. If silver cars lose
notion that we should stock according their appeal, we must quickly respond
to our past sales and/or in accordance by changing our preference of color
with our franchise brand. Yes, it may be choices. We simply can no longer afford
true, he told me, that there is some natural the convenient comforting thought that
traffic for these vehicles, but that does not what worked in the past will work today or
necessarily mean that they are the most tomorrow. The only things that are constant
demanded products in the market. Properly and predictable are death, taxes and
used, the Internet allows dealers to be change. Let’s wake up, smell the coffee and
successful with products that are hot, but realize that the notion of “core” is rotten.
not necessarily their brand or part of their
past core. “Remember,” he said, “no used
car manager ever got fired for selling the Dale Pollak is the chairman and founder
right mix of used makes and models.” of vAuto. He can be contacted at
866.867.9620, or by e-mail at
14
So why is it hard for many dealerships to dpollak@autosuccessonline.com.
www.autosuccessonline.com
14. STS
GarySimmons
sales&trainingsolution
ADOPT AN OPEN SERVICE
DRIVEWAY AND GENERATE
$200,000 MORE THIS YEAR
In today’s tight entire day, including Friday. Currently many “Your service
market, most service advisers stop scheduling same-day
dealerships are losing money on both new appointments at 10 or 11 a.m. because they and parts
and used vehicles. Staying out of the red get overwhelmed with numerous open departments
is possible, though: Look to your service repair orders. An overwhelmed adviser will are your
and parts departments. These departments schedule appointments for 24 to 48 hours
should be your revenue-generating stars, but after the customer calls, causing your no- revenue-
if they’re not, you’re not alone. The service show percentage to jump to more than 30 generating
department, primed to run at maximum percent as customers turn to another shop.
efficiency, often is stymied by overwhelmed No only are you losing revenue, you’re
stars, as long
service advisors who prematurely shut off alienating customers. The hardest part to as they are
the daily flow of customers, “closing” the swallow is that many service technicians structured and
department and costing you as much as will be finished with their work before the
$200,000 in revenue each year. The good day is over, meaning customers were turned run by an
news, however, is that you can reap those away only because the number of open ‘open’
profits by cultivating an “open” service repairs orders seemed too daunting. Tell your
driveway, increasing efficiency, profitability advisers to keep the driveway open for just
policy.”
and customer satisfaction, without costing four additional repair orders per day, and you
undue time and money. can collect that missing $200,000 per year. service Web
page is also “open.”
Open Your Service Driveway Accommodate Your Customers, If a customer goes to your appointment
for the Entire Day Not Your Dealership page and is denied the appointment time slot
Your first step in generating more service If you’re thinking, “If I tell a customer to they want, they’ll simply jump to the site
revenue is to open your driveway for the bring in their vehicle but we cannot repair of another shop. Make it clear that you are
it today, they will be there to accommodate your customers by
just as disgruntled as ensuring that your online appointment menu
FOR SALE if I made them wait tells customers to call if they cannot get
for an appointment.” their requested time slot. Again, it is about
Revenue Generator Not necessarily. Your proving to the customer that they come first.
customers need to
Approximate Train Your Service Advisors to
know that their needs
Investment: $2,000 come first. By taking be a Part of the Team
immediate action The changes above will obviously affect
and telling them to your service advisers, so put in the time
come in right away, upfront to get them on-board with your
you are proving that. new strategy. Make sure they know they
The key is clear are an integral part of building a successful
communication: tell dealership. Outline for them the structure of
them you want to your dealership, where the greatest amount
Approximate determine the problem of revenue is coming from, your dealership
immediately, that you goals, and how they can make these goals
Monthly Return: a reality. Invested employees are your
$50,000 !! may not be able to
repair the problem that best weapon against a down market and
■ Integrated Email attrition. Also consider that you may need
Powerful, proven revenue generator. same day, but once
Excellent service history. Used by ■ Email Collection to hire additional service advisers to reach
you know the nature
dealerships across the U.S. Perfect ■ Direct Mail maximum department efficiency.
of the problem you can
for sales, customer satisfaction and ■ Voice Messaging
bottom line. Runs like a dream. give them an excellent Your service and parts departments are your
■ eNewsletters
estimate of the time revenue-generating stars, as long as they
■ Online Appointment
and labor involved. are structured and run by an “open” policy.
Call Now Scheduling
866.628.6245 The principle of When your department is open, you’ll
www.autorevenue.com gain increased efficiency and customer
accommodating
your customers first satisfaction. Most importantly, your revenue
also applies to your may just increase to more than $200,000.
service department Gary Simmons is the founder of
We do all the work... SM Web page. With so Management Consulting Services, Inc.
You make all the money! many consumers He can be contacted at
15
turning to the Internet 866.491.3806, or by e-mail at
first, ensure that your gsimmons@autosuccessonline.com.
the #1 sales-improvement magazine for the automotive professional
15. Call Today for your Complete
Registration Packet
888.490.0909
www.2008sfconvention.com
Preliminary Agenda
2008 Special Finance Convention August 17th – 19th, 2008
Sunday – Day One Monday – Day Two Tuesday – Day Three
Registration Breakfast in Exhibit Hall Breakfast in Exhibit Hall
1:00 pm – 8:30 pm 7:00 am – 8:45 am 7:00 am – 8:45 am
Exhibit Hall Booth Setup General Session Educational Sessions
1:30 pm – 5:30 pm 9:00 am – 10:15 am 9:00 am – 12:00 noon
Reception in Exhibit Hall Beverage Break Beverage Break
6:00 pm – 9:00 pm 10:15 am – 10:30 am 10:15 am – 10:30 am
Legal Jeopardy Lunch in Exhibit Hall
10:30 am – 12:00 noon 12:00 noon – 1:30 pm
Lunch in Exhibit Hall Roundtable Discussions
12:00 noon – 1:30 pm 1:45 pm – 3:00 pm
Educational Sessions Conference Adjourns
1:45 pm – 5:00 pm 3:00 pm
Beverage Break
3:00 pm – 3:15 pm
Reception in Exhibit Hall
5:00 pm – 6:30 pm
Moderators and Speakers
Emily Beck Kevin Day Greg Goebel Tom Herald Tom Hudson Kris Wright
16. MS
ChuckPatton & TriciaPatton
marketingsolution
SERVICE: PROFIT CENTER OR
ADVERTISING INVESTMENT?
Is your percent of total dealership operating known as “your brand.” Remember,
service profits, and that number is rising. if the customer is making a purchase
department a profit center or advertising decision, they will start by listening to
investment? The answer is “both.” Chances 5. If you consider any of the forecasting someone they like and trust.
are, the manufacturer you represent was about the economy and how that will
down for the month of June. These market effect your retail department, it makes 6. Be careful about which advertising
conditions are unprecedented for many sense to concentrate your advertising experts you listen to. Service
of us, and we are trying to re-adjust our investment in the area that makes marketing doesn’t work like the one-
strategies in order to adapt and keep our you the most money — the service event wonders that may have been
numbers up. One trend remains, however: department. proposed to you.
We all depend on our service department
to level off the front-end sales loss during 6. Your service department is definitely a 7. How many customers bought from
a down sales cycle. The good news is profit center. you but are not servicing? If you use
service can still be there for you. Challenge direct mail and they are dialing into
yourself to look at things in a new light and Now, here are a few ideas HOW to expand your database, they should be able to
start assessing the importance of reinvesting your service department vision from just a tell you who you are retaining and who
in your service department just as you profit center to an advertising investment: you are not.
would your personal financial profile. 1. Take control of your service
advertising and make sure you are 8. Monitor everything, such as the
Most dealers set a goal for their service marketing YOUR dealership, not number of loyal customers, number
department to achieve the highest the manufacturer. Service marketing of customers who service between
absorption rate possible. If you have the is typically a communication that 0-24 months, and number of defecting
right perspective, your service department occurs four or more times a year, and customers. Send a message according
can achieve this and double as a prospect some programs you might be using to known behavior, not just the year
base to build strong sales. This is because spend more time talking about what and model.
the larger your customer base is in service, the manufacturer offers and less about
the stronger your prospect base is to sales. what your dealership offers. Depending on what statistic you follow, a
So, is your service department a profit loyal client to the service department will
center or is it actually an advertising 2. Don’t cut the budget. Most give you a chance to sell them their next
investment? Increased loyalty in your dealerships invest less than 10 percent vehicle about 75 to 85 percent of the time.
service department will eventually lead to of their total advertising budget in This means if you have a loyal customer
a larger customer base to mine for sales. the very department that produces 77 base of 3,000 customers, you will have
But, first you must set it as a priority, and percent of the profit. That might be 2,550 ups or 850 per year over the next
second you must mine it for potential. So, too low. Typically the only soft sale, three years.
if you are thinking of cutting back on your customer relations branding you will
service advertising, think again. do is in service. So, is your service department a profit
center or an investment in advertising?
Here is a clear argument for making your 3. The key customers for prospecting This example shows that there are at
service department an investment — go are those who have serviced their least 70 quality ups per month from
through the most current financial numbers vehicle within the past 12 months your dealership customer base of 3,000
and trends at NADA.org and read between and have a three- to four-year-old customers, and your closing ratios should
the lines: vehicle. Don’t be surprised if that be high.
1. The following numbers were down number stretches to five or six years,
two years ago: total dealership sales, given the down economy. We are always looking for a magic pill or
net profit before taxes and new vehicle the next new idea for advertising that will
sales. 4. Look to make your less loyal clients sell more cars. However, the largest profit
more loyal and build your primary center is under our nose and is easy to
2. The largest increases in income came purchase base. Try marketing to market to. Expenses will become more of
from the used car department and the service customers who have not been an issue for 2008 and into 2009. Service
service department. to your dealership in 12 to 36 months is looking to be a pretty good investment
in a completely different way than within your portfolio!
3. The average dealership achieves loyal clients. Get aggressive about
around $31 million in sales. Just under your offers and approach the marketing
$4 million of that comes from service conversation differently.
department. Chuck and Tricia Patton are the founders
5. Sell yourself. Keep a consistent of Traffic Builders Inc. They can be
4. In 2006, the service and parts message of quality and talk about contacted at 866.859.8520, or by e-mail
18
department profits accounted for 77 what you have to offer, or, what is at patton@autosuccessonline.com.
www.autosuccessonline.com
17. The Best Staffed Events Start
With The Best Teams.
More Training. More Professionalism. More Gross.
More Energy.
That’s our specialty.
Frustrated by continual poor results from your advertising?
Worn out from the lack of energy & enthusiasm at your store?
Worried about your store’s future profitability?
Need a strategy to increase revenue in a tough market?
Since 1993, thousands of dealerships have relied on
G&A Marketing to deliver winning solutions to these World Class Staffed Promotions and
Direct Marketing for the Automotive Industry
problems and more.
1-800-688-1370 • info@gamarketing.com
If you’re serious about seeing what the best car guys
in the industry can do for your store, call us. www.gamarketing.com
Contact Matt Baker anytime: 1-800-688-1370
mbaker@gamarketing.com