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It’s Coming — AutoSuccess Best of the Best NADA 2009
                                                       November 2008
NADA Booth #5247
November 2008
                                    OBJECTIONS EQUAL DESIRE
                                                                                8    TomHopkins
                                                                                                       address:

                                                                                10
                                      LIGHTS! CAMERAS! ACTION!                       JoshuaMuller      3834 Taylorsville Rd.
             Vehicle Videos are Proven Sales Tools on Dealership Web Sites                             Building A, Ste. 1B
                                                                                                       Louisville Kentucky 40220
                     FORECASTING - NOW MORE THAN EVER
                                                                                11   BrookeSamples
                                                                                                       phone / fax:
                                                                                                       877.818.6620 / 502.588.3170
                               SEARCH ENGINE MARKETING 2.0
 How the Next Generation of Search Delivers More Leads with Smart Bidding       12   SusanGivens
                                                                                                       web:
                                              and Inventory That Sells Itself                          AutoSuccessOnline.com
                                                                                                       AutoSuccessPodcast.com
                                           IT IS TIME FOR A LEADER
                                                                                14   JimAdams
                                                                                                       team:
                                                                                                       Susan Givens
                                  INTERNET SALES 20 GROUP XI
                                                                                16   SeanV.Bradley     Publisher
                                                                                                       sgivens1@autosuccessonline.com
                        BEYOND THE PERFORMANCE REVIEW
                                                                                18   StephenR.Covey    Thomas Williams
                                                                                                       VP & Creative Director
                                                                                                       design@autosuccessonline.com
                    MORE TIME FOR RED FLAG COMPLIANCE
                                                                                19   JasonBlair
                                                                                                       Dave Davis
                                                                                                       Editor and Creative Strategist
                                         IT’S TIME FOR A DECISION
                                                                                20   MarkProctor       ddavis@autosuccessonline.com

                                                                                                       Brian Ankney
  CREATE THE BIG MO - USING THE BIG “O” APPROACH
                                                    Six Powerful Sales Links    22   PaulCummings      Sales-Improvement Strategist
                                                                                                       super6@autosuccessonline.com
                     CHOOSING THE RIGHT SPECIAL FINANCE
                      INTERNET LEAD GENERATION PARTNER                          26   AlexBravy         John Warner
                                                                                                       Sales-Improvement Strategist
                                WHO SET THE PERFORMANCE
                            STANDARDS IN YOUR DEALERSHIP?                       28   SteveBrazill      jwarner@autosuccessonline.com

                                                                                                       general information:
             DOWN TIMES FAVOR THE BOLD ADVERTISERS
                                                                                29   MattBaker         info@autosuccessonline.com

                                                                                                       eNewsletter:
                                     LEADING IN DIFFICULT TIMES
                                                                                30   JohnBrentlinger   enews@autosuccessonline.com

                                                                                                       AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd.,
                SEVEN LAST WORKS OF A DYING COMPANY
                                                                                34   PaulSnider        Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170.
                                                                                                       Direct all subscription and customer service inquiries to 877.818.6620 or
                                                                                                       info@autosuccessonline.com. Subscription rate is $69 per year.



                                                                                36
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                                                     MUDDY WATERS                    DalePollak        for their return). All submitted editorials and graphics are subject to editing
                                                                                                       for grammar, content and page length. AutoSuccess provides its
                                                                                                       contributing writers latitude in expressing advice and solutions; views

SERVICE MANAGERS BOOST TRAFFIC, GENERATE $2,000
                                                                                37
                                                                                                       expressed are not necessarily those of AutoSuccess and by no means
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          ROs WITH FOCUSED DIRECT MAIL STRATEGY                                                        content of any third party material appearing in this magazine or in respect
                                                                                                       of the content of any other magazine to which this magazine may be linked
                                     WALT MASSEY AUTOMOTIVE
                            Bringing in Big-City Numbers in Rural Mississippi   38   LarryCochran      from time to time. Always confer with legal counsel before implementing
                                                                                                       changes in procedures.© All contents copyrighted by AutoSuccess
                                                                                                       Magazine, a Division of Systems Marketing, Inc. All rights reserved.



                                                                                40
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                                 INCREASING THE BOTTOM LINE                          JeffJames         from AutoSuccess. AutoSuccess may occasionally make readers’ names
                                                                                                       available to other companies whose products and/or services may be of
                                                                                                       interest; readers may request that names be removed by calling



                                                                                42
                                                                                                       877.818.6620. Printed in the USA. Postmaster: Send address changes to
                                                    FROM NO TO YES                   MarkTewart        AutoSuccess Magazine, 3834 Taylorsville Rd., Building A, Ste. 1B
                                                                                                       Louisville, KY 40220.


  GET LEAN AND MEAN – CROSS-TRAIN YOUR MACHINE
                                                                                43   MarcSmith


12
                                            34                                   16                    helping to support...
STS
sales&trainingsolution
                                                 TomHopkins


                                                 OBJECTIONS
                                                 EQUAL DESIRE
                                                 Early in my selling      to feel absolutely confident that what we            pressure, they’re killing the sale.
                                                 career, I had this       are replacing that money with will give
                         dream. In it, I met a married couple to offer    us all the benefits we want. I know that’s         • DON’T attack when you address
                         my product — and they were so wonderful.         true about me, so why should I expect my            concerns. Learn to develop a sensitivity
                         They thoroughly enjoyed my presentation.         prospective clients to be any different?            as to how your prospects feel, and
                         They agreed to everything I mentioned.                                                               show your own concern for helping
                         They didn’t ask any questions or give            My success rate in sales increased                  them, not a determination to prove
                         any objections. The whole transaction            tremendously when I came to expect to               them wrong. If you fight their feelings,
                         was completed and in record time. They           hear concerns instead of fearing them.              their negative emotions will take over.
                         approved everything, gave me several             When I began to listen for them, to                 Defense barriers go up and you have to
                         qualified leads and thanked me as they left       anticipate their arrival, I was amazed to           work twice as hard for their business.
                         my office. What a wonderful dream!                learn that I was hearing basically the same       • DO lead them to address their own
                                                                          three or four concerns in nearly every              concerns. A true professional always
                         Somehow, I don’t think I was alone in            situation. That’s when I began doing                tries to help prospects answer their
                         having a dream of that sort. Most new            some serious analysis. I spent a few hours          own objections. Most prospects will
                         salespeople think that’s what selling is like.   thinking about each of those concerns.              do just that given time and a little more
                         Unfortunately, some veteran salespeople          What could I do or say to help them get             information. After all, deep down,
                         keep looking for that dream to come              comfortably past these points?                      they want to go ahead. They wouldn’t
                         true, as well, and it holds them back                                                                waste their time objecting to something
                         from achieving the level of success that’s       I began by putting myself in their positions        they didn’t want to own, would they?
                         possible with a bit of education.                and discovered most prospects were                  So, your job when you hear a concern
                                                                          objecting because of one basic emotion              is to ask the client to elaborate on it.
                         I begin every seminar by reminding my            that was being triggered — FEAR. They               Say something like this, “Mrs. Smith,
                         students that there are seven steps in the       were afraid to make an irreversible                 obviously you have a reason for saying
                         selling process:                                 decision. They were afraid to make a                that. Would you mind sharing it with
                           1.Prospecting                                  commitment with their money. They were              me?” This will get her talking about
                           2.Original Contact                             afraid the product wouldn’t live up to              what’s behind her concern. Once you
                           3.Qualification                                 their expectations. They were afraid I was          understand what’s really holding her
                           4.Presentation                                 a “take-the-money-and-run” salesperson              back, you’ll be able to address that issue.
                           5.Handling Objections                          whom they’d never be able to reach again
                           6.Closing                                      when they had questions about the product        In many cases, when clients do elaborate
                           7.Getting Referrals                            after they owned it.                             on what’s bothering them, they’ll talk
                                                                                                                           themselves right through the concern and
                         Please take note that handling objections        You see, concerns are defense mechanisms.        set it aside without you ever having to say
                         is a step. It shouldn’t come as a surprise to    They are ways for clients to tell you you’re     anything. Oftentimes, addressing a concern
                         any salesperson.                                 moving too fast and that they need more          only involves reviewing points you already
                                                                          information before they can feel confident        covered in a summary of your presentation.
                         Understanding how to handle objections is        about going ahead with the vehicle.
                         critical to your success. But, before we go                                                       The key is to stay calm and keep
                         any further, let me help you change your         I teach two “don’ts” and one “do” for            questioning what’s holding them back in
                         perspective about them. When you hear the        handling every concern.                          a gentle, concerned manner until you find
                         word “objection,” do you think of lawyers          • DON’T argue. If this sounds silly to         the real concern. Then, you address it and
                         jumping out of their seats on television?             you, good. You already know this. But,      move on to closing the transaction.
                         They’re effectively stopping the forward              even though you know it, do you fight
                         movement of a trial. It’s an interruption.            with them in the back of your mind?         World-renowned master sales trainer Tom
                                                                               If you do, eventually it will begin to      Hopkins is the chairman of Tom Hopkins
                         It’s human nature to object, hesitate,                show. When potential buyers object,         International. He can be contacted at
                         stall or procrastinate when making any                they’re asking for more information. If     866.347.6148, or by e-mail at
                         decision that impacts our money. We have              salespeople get upset, sarcastic or apply   thopkins@autosuccessonline.com.
 8




  www.autosuccessonline.com
MS                                                                                                                                                               MS
                                           JoshuaMuller                                                                                                                                                     BrookeSamples
marketingsolution




                                                                                                                                                                 marketingsolution
                                                                                                                                                                                                            FORECASTING -
                                           LIGHTS! CAMERAS! ACTION!                                                                                                                                         NOW MORE
                                           Vehicle Videos are Proven Sales Tools on Dealership Web Sites                                                                                                    THAN EVER
                                            The addition of       no sign of abating. Yet, in the eyes of        Videos are ‘Sticky’                                                                        What do you want        you are looking for and how much they are
                                            vehicle videos as a   many dealerships, these trends alone are       Research shows that using video on a Web                                                   your business to        individually expected to contribute. But,
                    compelling component to dealership Web        not enough to convince them to make the        site increases the amount of time a consumer                        look like in 2009? Close your eyes and         more importantly, show them how reaching
                    sites continues to grow at a steady rate.     investment in vehicle videos, and some still   spends on the site – making it “sticky,”                            visualize. Lots of happy customers? The        their numbers will impact their lives. The
                    At the same time, the public’s interest       question what investing in vehicle videos      and increasing the likelihood the consumer                          right inventories? Fabulous bottom line?       average technician turning just five more
                    in video sites on the World Wide Web          would bring to their business.                 will submit a sales lead that ultimately can                        Is your vision one your employees can          hours a week can generate an additional
                    overall continues to blossom and shows                                                       translate to the bottom line. And that’s the                        rally around and do whatever is necessary      $5,000 more per year in personal earnings.
                                                                                                                 point: Dealerships want their Web site to act                       to achieve? Then use a good forecasting        Show your vehicle salespeople how just
                                                                                                                 as one more calling card for the dealer and                         process and make your vision a reality.        selling two more cars a month will add
                                                                                                                 for doing business with them.                                       Forecasting is about setting those big         thousands of dollars to their paycheck by
                                                                                                                                                                                     goals and then creating the passion in your    the end of the year.
                                                                                                                 Videos are Persuasive                                               employees to embrace and implement the
                                                                                                                 Recent studies by Burst Media also show                             steps necessary to reach those goals.          But don’t settle for just numbers – demand
                                                                                                                 that nearly 55 percent of online shoppers                                                                          plans and evidence to support the forecast.
                                                                                                                 indicated that a vehicle video made them                            We recommend starting at the bottom            You can’t just say you’re going to sell 100
                                                                                                                 more likely to consider buying or leasing                           – how much does the dealership want to         vehicles a month and expect it to happen.
                                                                                                                 a model featured in a video. And, unlike                            make in 2009? Out of that, how much            If that was the case, then why not say
                                                                                                                 traditional marketing material, video has a                         will each department need to contribute?       you’re going to sell 200 vehicles a month?
                                                                                                                 very high pass rate from user-to-user.                              How will the departments achieve those         Your final forecasting meeting is for your
                                                                                                                                                                                     numbers? What has to be done differently       managers to solidify their commitment to
                                                                                                                 A Web site’s success is measured in part                            next year to achieve those numbers?            departmental forecasts and action plans.
                                                                                                                 by how long customers stay on the site                                                                             Remember hope is not an action plan.
                                                                                                                 and how many leads are generated from it.                           We suggest holding at least three meetings
                                                                                                                 Adding vehicle videos provides dealerships                          with your managers. The first will be to        Once you’ve settled on the 2009 forecast,
                                                                                                                 with a tool through which to share vehicle                          explain the process and establish the goals    make sure your managers are prepared to
                                                                                                                 information with online customers in an                             for the dealership and for each department.    break down the numbers for each employee
                                                                                                                 engaging way, and in a way that has been                            Due to the crossover between departments,      weekly and that there is a plan in place
                                                                                                                 proven to influence more than half of them                           we suggest the second meeting be used          to review this information weekly with
                                                                                                                 in the purchase decision they make.                                 to exchange information and present            the employees. If a tech is falling short
                                                                                                                                                                                     any additional ideas relating to expense       from his assigned goal of hours produced,
                                                                                                                 When considering vehicle videos for your                            reduction. Departments will need to share      determine what is stopping him from
                                                                                                                 Web site, here are the basics to look for:                          their forecasts. For example, the service      reaching that goal. It is better to find out
                                                                                                                  • Vehicle videos should be short and                               department needs to know how many new          early in the month what the problem is than
                                                                                                                    contain concise, engaging content.                               and used vehicles the sales department         to wait until the end of the month. Listen to
                                                                                                                  • The videos should be refreshed                                   expects to deliver so the service department   your employees and they will provide you
                                                                                                                    frequently, with new feature cars added                          can forecast how much gross profit new          with solutions for reaching your forecast.
                                                                                                                    in place of those that have been posted                          vehicle inspections and internal labor will
                                                                                                                    the longest.                                                     generate. This shared information will         Keep in mind your forecast is not set
                                                                                                                  • Use actual video footage that shows the                          solidify your forecast.                        in stone; there are so many variables,
                                                                                                                    vehicle in real-life motion, rather than                                                                        including economic fluctuations or major
                                                                                                                    pictures with a moving camera, to keep                           Your future depends on your employees          changes introduced by your manufacturer
                                                                                                                    your customers engaged in the video                              taking ownership of their role in the          which could heavily influence your actual
                                                                                                                    presentation.                                                    forecast; from the department managers         performance. If it becomes necessary, you
                                                                                                                  • Allow your customers to start the video                          to those people directly responsible for       may need to re-evaluate your forecast and
                                                                                                                    themselves; it shouldn’t begin the                               generating sales, controlling expenses or      take whatever steps are necessary to put
                                                                                                                    moment the page loads.                                           maintaining assets at optimal levels. Every    your dealership back on a winning path.
                                                                                                                                                                                     one of your employees should play a role
                                                                                                                 Videos can be a fantastic way to interact                           in the vision. All of your employees should    Remember your vision. What better time to
                                                                                                                 with your customers, allowing you to                                know how many vehicles you want to sell,       make commitments to your employees and
                                                                                                                 effectively convey messages to them                                 what CSI score you want to reach, how          to your business than today? Start planning
                                                                                                                 without an over-the-top sales pitch. Video is                       many vehicles service can handle, etc. And     your forecasting process, set big, heroic
                                                                                                                 here to stay. Video is growing. Is your Web                         then the employees need to know how they       goals and be ready for 2009.
                                                                                                                 site ready for some action?                                         can help reach those goals.
                                                                                                                                                                                                                                    Brooke Samples is the director of Dealer
                                                                                                                                                                                     Start with your sales goals. Quantify          Service Corporation, a division of NCM
                                                                                                                 Joshua Muller is the product planning                               your expectations with your salespeople
                                                                                                                 manager for Reynolds Web Solutions. He                                                                             Associates. She can be contacted at
                                                                                                                                                                                                                                    866.618.8377, or by e-mail at




                                                                                                                                                                                                                                                                                                                11
                                                                                                                                                                                     — vehicle, finance, service, parts and
 10




                                                                                                                 can be contacted at 866.386.0702, or by
                                                                                                                 e-mail at jmuller@autosuccessonline.com.                            collision center. They need to know what       bsamples@autosuccessonline.com.

 www.autosuccessonline.com                                                                                                                                                                                                                        the #1 sales-improvement magazine for the automotive professional
2.0
FS

                                                                  Search Engine
                                                                                                                                                                                                                     provides full life-cycle tracking of         Maximum ROI — More For Less
featuresolution

                                                                                                                                                                                                                          every campaign, from the first           The newest version released earlier this
                                                                                                                                                                                                                             click-through to sales. It’s fully   year has already yielded spectacular results.


                                                                     Marketing
                                                                                                                                                                                                                                integrated into the system so a   Dealers who have implemented it see, on
                                                                                                                                                                                                                                  dealer can see exactly how      average, $8 leads from their own Web sites.
                                                                                                                                                                                                                                   much revenue every SEM         That’s an average — in many cases lead
                                                                                                                                                                                                                                     ad generated.                costs are even lower. Additionally, first-
                                                                                                                                                                                                                                                                  party leads close at a much higher rate than

                                                                             How the Next Generation of Search
                                                                                                                                                                                                                                   Automatic Refreshing           other leads. Compare that to the $20 to $30
                                                                                                                                                                                                                                   of Ad Content                  per lead costs and lower closing rates of
                                                                         Delivers More Leads with Smart Bidding                                                                                                                    — Keeping it Fresh
                                                                                                                                                                                                                                   Every week, the system
                                                                                                                                                                                                                                                                  third-party lead providers, and TCD truly
                                                                                                                                                                                                                                                                  does become a “no brainer.”
                                                                                   and Inventory That Sells Itself                                                                                                               monitors all updates made to
                                                                                                                                                                                                                               a Web site; including content,     For More information on
                                                                                                                                                                                                                            inventory, specials, new models,      Dealer.com, contact us
                                                                                                                                                                                                                       new information on vehicles, etc.          at 866.859.6410, or by
                   SusanGivens                                                                                                                                                                                    Then, it automatically refreshes keywords       e-mail at dealer.com@
                                                                                                                                                                                                                  list with Google.                               autosuccessonline.com.
                  For many Internet managers at dealerships,      ads take the customer to the dealership’s         keywords get the most click traffic, then       connecting users directly to the inventory
                  it’s the great experiment: search engine        home page, rather than deep-linking directly      provide tools to help dealers optimize the     page will result in higher conversion rates.
                  marketing (SEM) and search engine               to a page that contains the information they      number of clicks. The only problem is that     Keeping SEM ads current with inventory,
                  optimization (SEO). Some love it, others        are looking for.                                  search engines focus on click volume and       however, is the problem. It’s challenging        SEM Best Practices:                            Setting the Standard in
                  are wary of it or don’t understand it, and                                                        not on return on investment (ROI). How         enough for many Internet managers to             • Spend money on advertising while the         Search Expertise
                  others avoid it altogether.                     Also troubling, many firms don’t tell              many of those keywords convert? What is        update inventory listings every day, let           dealership is open. Statistics show that     Never content with just “good enough,”
                                                                  dealers where their money is being spent.         the ROI for each keyword? You can now          alone having to notify an SEM vendor or            nine out of 10 potential customers pick      Dealer.com set a goal of becoming the
                  The fact is, SEM works. Answer honestly:        Dealerships have the right to know                have the answers to these questions with       spend time creating new SEM ads.                   up the phone when they see an ad, while      automotive industry’s best SEO/SEM
                  Do you think the vast majority of your          where every dollar is being spent, what           advanced performance analytics that dealers    This is no longer a problem. TCD                   only one out of 10 customers send an         provider. To back up this claim, the
                  customers do some online research before        percentage goes into the search engine            can use to determine the exact value of        automatically updates a dealer’s SEM               e-mail or fill out a Web form. If the         company became a Google AdWords
                  stepping foot onto your lot? In today’s         and what percentage the firm is taking, as         each keyword in terms of dollars generated     campaign strategy based on inventory feeds         dealership is closed when that customer      Authorized Reseller Partner. In addition,
                  competitive market, dealerships need to         well as how much is being spent on all the        rather than simply the number of clicks.       it receives from a dealership’s system. So         calls, they may never get the lead.          45 percent of Dealer.com employees have
                  be using every tool on the Internet to help     different campaigns.                                                                             if a dealer sells that 2006 Nissan Altima        • If you see a competitor running a            received one or more of the following
                  these customers find them. If not, they get                                                        For example, say that “2008 Ford Mustang”      and it’s taken out of the inventory, that          special on a particular make/model,          certifications:
                  left behind.                                    Fortunately, the next generation of SEM           gets 50 clicks and “Ford Mustang               night the SEM ad with those key words              and you know you can beat the price or         • Training Certified on Google
                                                                  has arrived. From this point on, dealerships      windshield wiper” gets 1,000 clicks. Even      will automatically be turned off. The              special, here’s a tip: Create an instant         AdWords
                  It’s powerful, but SEM isn’t an easy tool for   can easily set up and manage effective            at equivalent conversion rates, the value      dealership will not waste a single dollar on       SEM ad promoting a special for the             • Sales Certified on Google AdWords
                  dealerships to pick up and use. The biggest     campaigns that will not only increase the         of selling a car is much higher than that      a click-through from an outdated ad, which         same and/or similar make/model. If             • Account Management Certified on
                  problem most Internet managers have with        number of leads, but significantly lower           of selling a wiper. But blind search engine    translates into extremely efficient and             a customer sees your competitor’s                Google AdWords
                  SEM is the time involved with setting           the average cost-per-lead. Also, and just as      optimizers don’t know that, and would bid      targeted ad spending.                              ad and goes online to search for
                  up their own campaigns. It’s not rocket         importantly, these leads will close at a much     up the term with “windshield wiper” in it.                                                        information about the dealer, your ad        The advanced certifications require more
                  science, but the volume of data that must       higher rate than traditional third-party leads,   However, the application’s Smart Bidding       Call Tracking and Recording — Who                  will also appear promoting the same or       than 15 weeks of intensive study and
                  be sorted through, combined with updating       because the SEM ads that generate the leads       “brain” knows the difference, because          Called, and For What Product?                      a similar special — and you may just         rigorous testing. More than 90 Dealer.
                  content, reacting to trends and metrics and     are very targeted and specific. So what            it connects the click expense directly to      TCD provides a new level of phone                  get to capitalize on your competitor’s       com employees in technical development,
                  manually removing or adding keywords to         exactly is this new generation of SEM?            measurable revenue. Smart bidding is           tracking so dealers can see detailed ROI           advertising.                                 engineering, Rapid Response support,
                  campaigns, all add up to a labor-intensive                                                        return based, not click based.                 for every dollar spent. For each SEM             • Know Your Invoice. A lot of solutions        sales and marketing and the entire search
                  job. Unless a dealership can allocate a         TotalControl DOMINATORTM (TCD), created                                                          campaign, the system assigns unique                come with hidden fees, which have            and account management team have
                  full-time, dedicated staff to running SEM       by Dealer.com is an application created           Deep Linking — Putting the                     phone numbers to every search engine for           the potential to drive your cost-per-        received the advanced certifications.
                  campaigns, they will more than likely fail.     to deal with the most common problems             Customer Where They Want to Be                 the sales, service and parts departments.          lead rates sky high. You should have         Google trainers continue to work closely
                                                                  dealerships experience when implementing          TCD creates ads that deep link to the          That’s at least 15 unique phone numbers            control over your spend and be able          with Dealer.com to provide ongoing
                  To avoid this, many dealerships have            SEM programs. Unlike anything else on the         correct areas of a dealership’s Web site       for every campaign. This leads to a                to track results, as in phone calls and      training and ensure the team stays current
                  hired third-party firms to create                market, it incorporates a “big brain” of SEM      or microsite. If a person is searching for     better understanding of the value each             e-mail submissions, so you can see the       with the latest trends and changes.
                  and manage their SEO/SEM                        data that has been gathered from dealerships      “brake service Atlanta,” most SEM ads will     search engine provider brings to different         leads generated for every dollar spent.
                  campaigns. The biggest problem                  all over the country. More than just an           take them to the dealership’s home page        campaigns.                                         Your dealership should be aware of the       What does that mean to a dealer? The
                  with this strategy is these                     interface, this “brain” tracks trends and         rather than directly to the service page.                                                         profitability and effectiveness of your       difference between hiring a certified
                  companies are not fully a part                  metrics, and allows dealers to create effective   Statistics show that when customers click      Integrated Lead Management                         SEM strategies.                              professional vs. someone who does not
                  of the dealership’s Web team.                   SEM campaigns in minutes.                         through to a Web site, 25 percent will leave   — Tracking Your Campaign                         • Take advantage of Google. Google             know how to design an effective SEM
                  Without knowing the dealer’s                                                                      after only two clicks. Ads that deep link to   TCD’s lead management tracking system              possesses 70 percent of the market           campaign can cost dealers hundreds, if
                  Web site structure or inventory                 SEM is now elevated to a new level with           the relevant content will retain many more                                                        share, which means your SEM                  not thousands of dollars per month.
                  feeds, third-party firms can’t                         the following features:                     users than traditional SEM ads.                                                                   strategies must utilize the great
                  immediately update campaigns                           Smart Bidding — Getting the                                                                                                                  advantage Google can offer your SEM,
                  to reflect what the dealership is                       Right Words for the Right Price            Automatic Inventory Ad Updates                                                                    as well as your dealership. In addition,
                  attempting to                                                                     Google          — Keeping Up to Date with Your                                                                    you should submit your business to
                  promote or                                                                        and other       Inventory                                                                                         the Google Local Business Center so
                  sell. Another                                                                     search          Everyone agrees that having ads to target                                                         your dealership shows up on Google
                  downside is                                                                       engines         specific inventory is a great idea. If                                                             Maps, and also in the “Local Business
                  that most of                                                                      keep track      someone types in “2006 Nissan Altima”                                                             Results” section at the top of search




                                                                                                                                                                                                                                                                                                                  13
12




                  the links from                                                                    of which        and a dealership has several on the lot,                                                          results pages.
LS
                                            JimAdams
leadershipsolution



                                            IT IS TIME FOR A
                                            LEADER
                                               Did you ever          people that will find a way to prosper. He      3. Make a Plan
                                               wonder why a          also said that no matter how good times        Make sure you have a mapped-out daily,
                     commercial airline pilot makes so much          are, there are people that will mess things    weekly and monthly plan to generate the
                     money? I can tell you that it is not because    up royally. Face the facts: Some dealers       amount of opportunity that you must create
                     they can take off in Tulsa and land in          will not survive. Those dealers who do         to be successful. Make sure that each
                     Kansas City. It is not because they can show    not focus on training and award-winning        member of the team is completely bought
                     up on time and they look good in a pilot’s      customer service will be doing something       in and accept zero slacking. Your people
                     uniform. It is because when things get          different next year. It is truly time for a    are looking for a leader, and leaders have
                     tough and something unexpected happens,         leader. My question is: Are you that leader?   a plan. They will follow you if you are
                     they are up to the challenge. The true test                                                    competent and confident.
                     of an airline pilot is not when the winds are   1. Stop Whining
                     calm and the visibility is 20 miles. The test   You are a leader. Leaders must be              4. Pay the Price
                     is in the turbulence and the thunderstorm.      optimists. You can be a realist and an         No one promised you it was going to
                                                                     optimist at the same time. Your people are     be easy. If you are looking for the easy
                     This past year has created challenges for       looking to you for direction. They do not      work, you chose the wrong profession.
                     us all. You cannot turn on the television       need you telling them how bad things are.      Leaders work smarter, leaders work harder
                     without hearing some pretty bad news            They are looking for you to show them the      and leaders do whatever is necessary to
                     about our industry. I have been in the          way. Empathize with the present condition,     succeed.
                     retail automotive industry, on the front        but give them hope that with the right plan
                     lines for nearly 20 years and I have heard      everything will come out in the end.           You are in the position that you are in right
                     bad news before. I have seen dealerships                                                       now because someone had the faith and
                     fail. I have seen every single dealership in    2. Make a Decision                             confidence that, no matter how tough times
                     Joplin, Missouri change hands in the past       You must decide not to participate in the      were, you would find a way to succeed.
                     10 years except one. I have a crystal clear     current crisis. Remind your salespeople        If you are a dealer reading this article,
                     understanding of my job responsibility. I       every day that sales is a numbers game.        your employees and their families are
                     am the leader. People mirror other people’s     Each salesperson does not need to figure        counting on you to lead them. If you are a
                     behavior. Just as the airline pilot, my test    out how to sell 20 cars. They just need to     sales or service manager, every employee
                     is in the turbulence and the thunderstorm.      figure out how to talk to three people today.   is counting on you for direction. They
                     My test is in the calm assurance that if I      Focus on the activity, not the result. With    are looking to you for answers. Can you
                     just follow my training and react to my         the right activity, the results will follow.   provide them?
                     professional instincts, I will be able to put   Remember — leaders are where they are
                     my dealership in the position to prosper.       because most people are not willing to         Jim Adams is the general manager for
                                                                                                                    Fletcher Auto Group in Joplin, MO. He can
                     Zig Ziglar once said that no matter how         make a decision. Make a decision to focus      be contacted at 800.905.0627, or by e-
                     bad times are economically, that there are      on daily activities.                           mail at jadams@autosuccessonline.com.
 14




 www.autosuccessonline.com
STS
                                                SeanV.Bradley
sales&trainingsolution



                                                INTERNET SALES
                                                20 GROUP XI
                                                 Seek first to           knows what their prospects want, and that        If the customer says “no” to your question
                                                 understand, then to    means low grosses.                               “Have you ever purchased a vehicle
                         be understood. This eight word statement                                                        online?” then you would ask the “true”
                         can mean the difference between a sale         Let me give you an example. Let’s take           qualifying question: “What were you
                         and a blown opportunity. The No. 1 reason      the most competitive market in the United        looking to accomplish by going online?”
                         why prospects don’t buy a car is because       States — Detroit. One of my client’s, Dick
                         they are landed on the wrong vehicle. And      Genthe Chevrolet averages $1,800 a copy          They will tell you exactly what they
                         whose fault is this? The salesperson’s. The    on the Internet. There are over 42 other         were looking to accomplish and what
                         salesperson didn’t take the time to do due     Chevrolet dealerships within a 20-mile           their expectations are. Remember the top
                         diligence and properly qualify the prospect.   radius of their store. If that wasn’t amazing    five reasons why the customer is going
                         We are taught as salespeople to take and       enough, they make more gross on the              online to begin with: price, availability,
                         keep control of the conversation and lead      Internet with their used car initiatives. They   convenience, hate car salesman/looking for
                         the customer, rather than listening. We        broke the negative paradigm of assuming          a different way to do business and research.
                         prepare responses even before the customer     all people were looking for was price. They
                         is through speaking. We portray ourselves      also stopped stressing the 40 + dealerships      Think about it: If you ask someone
                         to care about what the customer is saying      around their store and what they were            what they were looking to accomplish
                         by nodding our heads, when, in reality,        doing. They began focusing on their own          by going online and they respond with
                         we are waiting for the customer to stop        prospects and the factors they actually have     “convenience,” it really doesn’t make
                         speaking so we can implement a closing         control over — “circle of influence” versus       much sense to jump to price (and with most
                         statement (“Want to take it for a spin?”).     “circle of concern.” They focused on taking      dealers, that means invoice). It would make
                                                                        the appropriate steps to “qualify” their         more sense to structure your presentation
                         The main objective of any successful           prospects.                                       to sell all of the convenience you and your
                         business is to exceed a prospect’s                                                              dealership can provide, such as filling out
                         expectation(s). But how can anyone meet        To be the best, it isn’t enough to just          most of the qualification paperwork via
                         or exceed the “unknown”? If a salesperson      meet your customer’s expectations; you           fax before the customer arrives or taking a
                         does not take the time to first establish the   must exceed them. You must supply                demo over to them for a test drive during
                         customer’s wants, wishes and expectations,     them with some validity as to why they           the customer’s lunch break and so on.
                         how on earth are you ever going to exceed      should buy a vehicle from you rather than
                         them?                                          your competitor. This is done with their         Seek first to understand, then to be
                                                                        dealership’s value package proposition.          understood. In sales, it makes no difference
                         For the past 10 years, I have been building    This means they sell the “sizzle” of why         whether you are on the showroom floor
                         Internet Departments and BDC’s all across      the prospect should do business at their         or in the Internet department. Salespeople
                         the United States and have come across         dealership. Specifically, what is their           are too quick to splurge information to a
                         the same misinformed assumption — “The         differentiator from all of those other 40+       prospect and they do not spend enough time
                         only thing people are looking for on the       surrounding Chevrolet dealerships.               qualifying them by trying to identify their
                         Internet is price.” In fact, statistics show                                                    wants, wishes and expectations. In reality,
                         that only 20 percent of people who shop        Here is a simple qualifying question you         a customer will sell themself if you listen
                         online are solely price motivated. So what     can ask your prospect: “Have you ever            hard enough. I strongly suggest that if you
                         are the other 80 percent looking for?          purchased a vehicle online?”                     want to sell more cars, more profitably and
                           • Availability, Convenience, Research,                                                        more often, you practice your listening
                             Hate car salesman / Looking for a          If they say “Yes,” follow with, “Great,          and qualifying skills. Don’t just hear your
                             different way to do business.              where did you purchase that vehicle, and         prospect; understand your prospect.
                                                                        what did you like about that experience?”
                                                                                                                         Sean V. Bradley is the founder and CEO
                         Dealers are consumed with the inaccurate       Whatever they respond with, make sure            of Dealer Synergy, a nationally recognized
                         fact of price being the sole reason why        your dealership does that too.                   training and consulting company in
                         people are going online, and the result is                                                      the automotive industry. He can be
                         that dealers don’t qualify their prospects     Then you transition to your value package        contacted at 866.648.7400, or by e-mail at
                         properly. The dealer assumes he or she         proposition.                                     sbradley@autosuccessonline.com.
 16




  www.autosuccessonline.com
LS                                                                                                                                                                   STS
                                            StephenR.Covey                                                                                                                                                            JasonBlair
leadershipsolution




                                                                                                                                                                    sales&trainingsolution
                                            BEYOND THE                                                                                                                                                                MORE TIME FOR RED
                                            PERFORMANCE REVIEW                                                                                                                                                        FLAG COMPLIANCE
                                              In my town, there’s    machine. If you’re a business leader in the     smart, you will understand as much as                                                            The FTC has             tools, but will not make you compliant.           look for potential Red Flags in your business.
                                              a lawn service that    21st century, you know that employees are       you possibly can about that customer’s                                                           announced that the
                     comes by three or four times a year to          by far your most important asset to your        idea of good value — about the “win”                                    mandatory deadline for meeting the Red Flag      Pay attention to what is out there and
                     examine the grass for diseases, apply a         dealership. You treat them as volunteers,       for the customer. The same is true of                                   Rule has been delayed until May 1, 2009          remember your dealership’s livelihood is at       Jason Blair is the president of
                     little fertilizer and some other treatments     just as you treat customers as volunteers,      salespeople. Intelligent leaders seek to                                (the deadline was to be Nov. 1, 2008). While     stake. Do not ignore this mandate; start your     Dealerspan LLC. He can be contacted at
                     to keep things going, and after about 10        because they choose to volunteer the best       deeply and accurately understand the                                    this gives dealers some breathing room in        identity theft prevention program now and do      866.618.8235, or by e-mail at
                     minutes, head off to the next lawn.             part of themselves — their hearts and           “wins” for their sales staff. Instead of                                creating an identity theft prevention program,   not forget to train your staff appropriately to   jblair@autosuccessonline.com.
                                                                     minds — to your dealership. And they have       reviewing performance, they sit down                                    putting it off and gambling that the FTC will
                     This also is how performance evaluations        more choices than ever about where and          with their salespeople and make “win-win                                never come to your dealership to check isn’t
                     are generally done in most organizations.       what they will volunteer.                       agreements.” The salesperson defines what                                a good idea. The odds may be on your side,
                     Every year or so, the boss does a                                                               the win is for him or her, and the leader                               but know this: You are risking a great deal.
                     performance review on the employees.            I was in a group once where someone             defines what the win is for the dealership.
                     We get checked off on a 10-point scale or       asked, “How do you shape up lazy and                                                                                    The fine that the FTC can levy on a business
                     some other device. The boss drops a little      incompetent employees?” One man                 A win-win agreement always contains                                     that has violated this federally mandated
                     encouragement on us — or some other             responded, “Drop hand grenades!” Several        the same basic elements. First, you define                               law is $2,500 per “knowing” incident.
                     treatment — to keep things going. It takes      others cheered that “shape up or ship           together the goal of the agreement — the                                “That doesn’t sound that bad,” you might
                     about 10 minutes, and then we can all get       out” approach to supervision. But another       desired result. Then you define, again                                   be thinking to yourself. “I mean, it’s a
                     back to work.                                   person in the group asked, “Why don’t you       together, the guidelines, resources and                                 tremendous hassle to put this identity theft
                                                                     do that to your customers? Just say, ‘Listen,   accountability mechanisms you will use                                  prevention program in place — I’ll just
                     The annual, semi-annual, quarterly or           if you’re not interested in buying, you can     — that is, how and when you will account                                pay the fine instead.” What you may not
                     whatever performance review is universally      just ship out of this place?”                   for progress on the goal. Finally, you define                            understand is that what the FTC is defining a
                     disliked. Employees are confused, because                                                       the wins for both of you if you achieve the                             “knowing” violation as every finance or lease
                     they don’t understand what they’re being        He said, “You can’t do that to customers.”      goal — and the consequences if you don’t.                               deal that takes place after the deadline. So,
                     evaluated on. Bosses hate doing it, because                                                                                                                             say you sell 100 cars a month and you finance
                     they don’t believe in the process, and they     “Well, how come you can do it to your           Developing win-win agreements is                                        50 percent of them. That’s 50 “knowing”
                     fear the confrontations that sometimes arise.   employees?”                                     the central activity of good leadership.                                violations. Multiply that by $2,500, and you
                                                                                                                     Employees manage themselves within                                      know why this is a bad risk idea.
                     The old notion is that the leaders evaluate     “Because they work for you.”                    the framework of the agreement. Leaders                                 Now you may be asking yourself, “I need
                     people’s performance, sometimes using                                                           keep the resources flowing and the                                       a Red Flag solution for my dealership, but
                     a set of subjective criteria that is sprung     He answered, “Are you kidding? You can’t        pathway clear. And when it comes time                                   I don’t have the resources to put it together.
                     on them at the end of the reporting             find good people these days. There’s too         to do the performance review, there’s no                                Where do I start and what do I look for?”
                     period. This, of course, is absolutely          much turnover, disloyalty, absenteeism,         longer a visit from the lawn inspector. The
                     insulting, which is why so many managers        moonlighting — people just don’t care           employees evaluate themselves.                                          When looking for a Red Flag solution,
                     themselves don’t get good performance           anymore.”                                                                                                               dealers should look to address some of the
                     scores from their people.                                                                       Stephen R. Covey, Ph.D., is co-founder                                  tougher and more time-consuming aspects
                                                                     The top leaders of the 21st century realize     of FranklinCovey, and is the author of                                  of compliance, such as:
                     The old-time performance review has             that the implied contract between supplier      the best-selling The 7 Habits of Highly                                   • the process and time involved in
                     become a meaningless ritual, a holdover         and customer also is in force between the       Effective People. He can be contacted at                                    developing the required identity theft
                     from the Industrial Age mindset of treating     leaders and the led. A customer comes to        866.892.6363, or by e-mail at                                               prevention program.
                     people, like interchangeable parts in a         you to buy a vehicle, for value. If you’re      scovey@autosuccessonline.com.                                             • assessing your business risk level
                                                                                                                                                                                                 when it comes to identity theft (in all
                                                                                                                                                                                                 locations)
                                                                                                                                                                                               • the training of all necessary staff
                                                                                                                                                                                               • improving overall dealership knowledge
                                                                                                                                                                                                 with informative data to assist the
                                                                                                                                                                                                 staff in detecting Red Flags in their
                                                                                                                                                                                                 dealership
                                                                                                                                                                                             When all is said and done, a careful
                                                                                                                                                                                             approach should be used when choosing
                                                                                                                                                                                             an outside vendor to service your Red Flag
                                                                                                                                                                                             needs. A company may tell you that they
                                                                                                                                                                                             have a Red Flag solution for you, but if
                                                                                                                                                                                             they do not offer you a turn-key solution
                                                                                                                                                                                             or means of building your identity theft
                                                                                                                                                                                             prevention program, then you will not be
                                                                                                                                                                                             compliant with the Rule. There are systems




                                                                                                                                                                                                                                                                                                                                                 19
18




                                                                                                                                                                                             out there that assist you in identifying
                                                                                                                                                                                             potential Red Flags, some of which are great
 www.autosuccessonline.com                                                                                                                                                                                                                                  the #1 sales-improvement magazine for the automotive professional
LS
                                               MarkProctor
leadershipsolution



                                               IT’S TIME FOR
                                               A DECISION
                                              Are you in or out?         In 1975, the dollar amount estimated to          Toyota, any manufacturer or dealership.
                                              The decisions you          train a new sales person was $7,500. A           Our competition is the salesman down the
                     make now will determine your future or              large portion was the amount of business         road with his hands in his pocket spouting
                     create a self-fulfilling prophecy. You, and          lost due to rookie mistakes of not properly      the infamous greeting “Can I help you?”
                     only you, will decide to stay and fight the          qualifying, taking short cuts, etc. I believe
                     good fight with the tools needed in a down           the amount was actually higher then, and it      During a downturn, the best dealers
                     market, or throw in the towel and walk              is hard to comprehend the cost today with        survive, capitalize on what they have and
                     away.                                               many dealerships’ staggering turnover.           prepare for better times with the help of the
                                                                                                                          best consultants, trainers and information
                     Every previous downturn from the 70’s oil           Many consultants blow in, blow off and           available. However; tough times also
                     embargo, to the 80’s interest rates to the          blow out with your hard-earned dollars           generate a deluge of snake oil salesmen —
                     90’s over-saturated market has produced             providing a few minutes of motivation            who have never run a successful dealership
                     stronger dealers. Now is the time to invest         followed by a “let down” when measurable         or managed a department — offering the
                     in your people and your future.                     results are not achieved. We then ask            latest and greatest gimmick, promotion or
                                                                         ourselves if the money could have been           idea or offer a team of unknowns to do it
                     You do not build a business. You build an           utilized more effectively. Whether you           for you. There is too much at stake not to
                     organization of like-minded people who              sell 50 a month or 500 a month, the only         know who your partners are or who is in
                     builds your business and customer base that         question is how much do you keep at the          your store.
                     supports you through the toughest times.            end of the day.
                     There will be 13 million vehicles sold this                                                          We can never be better than the people
                     year. The question is: How much of your             A few years ago, someone thought you             with whom we surround ourselves. If you
                     “unfair share” of the market are you going          could and should sell cars like stereos.         are considering a consultant, marketing
                     to capture or give to the competition?              That did not work out quite as expected          or sales training group, be sure to ask
                                                                         and business plans were modified. Great           “What qualifies you to tell me how to run
                     For years, most dealerships have had one            ideas are a dime a dozen. Implementation         my store?” Pick your partners carefully.
                     common complaint: “I can’t hire good                is everything. Why do we keep trying to          Working with someone who actually
                     salespeople.” How many times do we                  reinvent the wheel? Cars are sold one at a       understands the car business and needs of
                     hear that and other misconceptions in our           time. This business is built on relationships.   the dealer will pay huge dividends in the
                     business? There has never been a better time                                                         end without headaches and surprises later.
                     to recruit and train quality people looking         We are blessed to be in the greatest
                     for an opportunity. There were 159,000              business in the world. Most of the people        You will never save yourself into a
                     people who lost their jobs last month? I            we know will be in the market for a new          profit. You have to sell yourself into one.
                     think that was just in the car business. All        or used vehicle. There is also a pent-up         Surround yourself with the right people
                     kidding aside, it is tougher now than it’s          demand from people waiting for the next          and you will be able to survive market
                     ever been and might get worse before it gets        big thing. News flash: There is no next           downturns and the occasional bump in the
                     better. The good news is that you are sitting       big thing. What they have not found is a         road. There is an old saying: If you always
                     on a gold mine. You have to sow the seeds           “transportation specialist” and “dealer for      do what you’ve always done, you will
                     now to reap tomorrow’s benefits.                     life.” You will never have customers for         always get what you’ve always got. Not
                                                                         life without salespeople for life.               today. You will not get a fraction of what
                     Hire the right candidates; train and pay                                                             you did in the past. It is time for a change.
                     them. Sound too simple? It’s not. If a              The most important thing we have to              Make a decision. Are you in or out?
                     salesperson does not succeed in our                 change now is how we recruit, train,
                     business, it is not their fault. It is our fault.   motivate and pay our people to create
                     We hired the wrong person to begin with,            the buying experience we require for our
                     did not provide the proper training or did          customers. They go hand in hand. The
                     not pay them fairly. If we do not pay a             buying experience is what separates us           Mark Proctor is the president of Preferred
                     person worth keeping, someone else will             from the competition.                            Dealer Services, Inc. He can be
                     and capitalize on your generosity to train                                                           contacted at 866.922.3541, or by e-mail
                     salespeople for them.                               Our competition is not between Honda or          at mproctor@autosuccessonline.com.
20




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AutoSuccess Nov08
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AutoSuccess Nov08

  • 1. It’s Coming — AutoSuccess Best of the Best NADA 2009 November 2008
  • 2.
  • 4. November 2008 OBJECTIONS EQUAL DESIRE 8 TomHopkins address: 10 LIGHTS! CAMERAS! ACTION! JoshuaMuller 3834 Taylorsville Rd. Vehicle Videos are Proven Sales Tools on Dealership Web Sites Building A, Ste. 1B Louisville Kentucky 40220 FORECASTING - NOW MORE THAN EVER 11 BrookeSamples phone / fax: 877.818.6620 / 502.588.3170 SEARCH ENGINE MARKETING 2.0 How the Next Generation of Search Delivers More Leads with Smart Bidding 12 SusanGivens web: and Inventory That Sells Itself AutoSuccessOnline.com AutoSuccessPodcast.com IT IS TIME FOR A LEADER 14 JimAdams team: Susan Givens INTERNET SALES 20 GROUP XI 16 SeanV.Bradley Publisher sgivens1@autosuccessonline.com BEYOND THE PERFORMANCE REVIEW 18 StephenR.Covey Thomas Williams VP & Creative Director design@autosuccessonline.com MORE TIME FOR RED FLAG COMPLIANCE 19 JasonBlair Dave Davis Editor and Creative Strategist IT’S TIME FOR A DECISION 20 MarkProctor ddavis@autosuccessonline.com Brian Ankney CREATE THE BIG MO - USING THE BIG “O” APPROACH Six Powerful Sales Links 22 PaulCummings Sales-Improvement Strategist super6@autosuccessonline.com CHOOSING THE RIGHT SPECIAL FINANCE INTERNET LEAD GENERATION PARTNER 26 AlexBravy John Warner Sales-Improvement Strategist WHO SET THE PERFORMANCE STANDARDS IN YOUR DEALERSHIP? 28 SteveBrazill jwarner@autosuccessonline.com general information: DOWN TIMES FAVOR THE BOLD ADVERTISERS 29 MattBaker info@autosuccessonline.com eNewsletter: LEADING IN DIFFICULT TIMES 30 JohnBrentlinger enews@autosuccessonline.com AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., SEVEN LAST WORKS OF A DYING COMPANY 34 PaulSnider Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccessonline.com. Subscription rate is $69 per year. 36 AutoSuccess welcomes unsolicited editorials and graphics (not responsible MUDDY WATERS DalePollak for their return). All submitted editorials and graphics are subject to editing for grammar, content and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views SERVICE MANAGERS BOOST TRAFFIC, GENERATE $2,000 37 expressed are not necessarily those of AutoSuccess and by no means FrankFurgiuele reflect any guarantees. AutoSuccess accepts no liability in respect of the ROs WITH FOCUSED DIRECT MAIL STRATEGY content of any third party material appearing in this magazine or in respect of the content of any other magazine to which this magazine may be linked WALT MASSEY AUTOMOTIVE Bringing in Big-City Numbers in Rural Mississippi 38 LarryCochran from time to time. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. 40 Reproduction in whole or part is prohibited without express written consent INCREASING THE BOTTOM LINE JeffJames from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 42 877.818.6620. Printed in the USA. Postmaster: Send address changes to FROM NO TO YES MarkTewart AutoSuccess Magazine, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220. GET LEAN AND MEAN – CROSS-TRAIN YOUR MACHINE 43 MarcSmith 12 34 16 helping to support...
  • 5. STS sales&trainingsolution TomHopkins OBJECTIONS EQUAL DESIRE Early in my selling to feel absolutely confident that what we pressure, they’re killing the sale. career, I had this are replacing that money with will give dream. In it, I met a married couple to offer us all the benefits we want. I know that’s • DON’T attack when you address my product — and they were so wonderful. true about me, so why should I expect my concerns. Learn to develop a sensitivity They thoroughly enjoyed my presentation. prospective clients to be any different? as to how your prospects feel, and They agreed to everything I mentioned. show your own concern for helping They didn’t ask any questions or give My success rate in sales increased them, not a determination to prove any objections. The whole transaction tremendously when I came to expect to them wrong. If you fight their feelings, was completed and in record time. They hear concerns instead of fearing them. their negative emotions will take over. approved everything, gave me several When I began to listen for them, to Defense barriers go up and you have to qualified leads and thanked me as they left anticipate their arrival, I was amazed to work twice as hard for their business. my office. What a wonderful dream! learn that I was hearing basically the same • DO lead them to address their own three or four concerns in nearly every concerns. A true professional always Somehow, I don’t think I was alone in situation. That’s when I began doing tries to help prospects answer their having a dream of that sort. Most new some serious analysis. I spent a few hours own objections. Most prospects will salespeople think that’s what selling is like. thinking about each of those concerns. do just that given time and a little more Unfortunately, some veteran salespeople What could I do or say to help them get information. After all, deep down, keep looking for that dream to come comfortably past these points? they want to go ahead. They wouldn’t true, as well, and it holds them back waste their time objecting to something from achieving the level of success that’s I began by putting myself in their positions they didn’t want to own, would they? possible with a bit of education. and discovered most prospects were So, your job when you hear a concern objecting because of one basic emotion is to ask the client to elaborate on it. I begin every seminar by reminding my that was being triggered — FEAR. They Say something like this, “Mrs. Smith, students that there are seven steps in the were afraid to make an irreversible obviously you have a reason for saying selling process: decision. They were afraid to make a that. Would you mind sharing it with 1.Prospecting commitment with their money. They were me?” This will get her talking about 2.Original Contact afraid the product wouldn’t live up to what’s behind her concern. Once you 3.Qualification their expectations. They were afraid I was understand what’s really holding her 4.Presentation a “take-the-money-and-run” salesperson back, you’ll be able to address that issue. 5.Handling Objections whom they’d never be able to reach again 6.Closing when they had questions about the product In many cases, when clients do elaborate 7.Getting Referrals after they owned it. on what’s bothering them, they’ll talk themselves right through the concern and Please take note that handling objections You see, concerns are defense mechanisms. set it aside without you ever having to say is a step. It shouldn’t come as a surprise to They are ways for clients to tell you you’re anything. Oftentimes, addressing a concern any salesperson. moving too fast and that they need more only involves reviewing points you already information before they can feel confident covered in a summary of your presentation. Understanding how to handle objections is about going ahead with the vehicle. critical to your success. But, before we go The key is to stay calm and keep any further, let me help you change your I teach two “don’ts” and one “do” for questioning what’s holding them back in perspective about them. When you hear the handling every concern. a gentle, concerned manner until you find word “objection,” do you think of lawyers • DON’T argue. If this sounds silly to the real concern. Then, you address it and jumping out of their seats on television? you, good. You already know this. But, move on to closing the transaction. They’re effectively stopping the forward even though you know it, do you fight movement of a trial. It’s an interruption. with them in the back of your mind? World-renowned master sales trainer Tom If you do, eventually it will begin to Hopkins is the chairman of Tom Hopkins It’s human nature to object, hesitate, show. When potential buyers object, International. He can be contacted at stall or procrastinate when making any they’re asking for more information. If 866.347.6148, or by e-mail at decision that impacts our money. We have salespeople get upset, sarcastic or apply thopkins@autosuccessonline.com. 8 www.autosuccessonline.com
  • 6. MS MS JoshuaMuller BrookeSamples marketingsolution marketingsolution FORECASTING - LIGHTS! CAMERAS! ACTION! NOW MORE Vehicle Videos are Proven Sales Tools on Dealership Web Sites THAN EVER The addition of no sign of abating. Yet, in the eyes of Videos are ‘Sticky’ What do you want you are looking for and how much they are vehicle videos as a many dealerships, these trends alone are Research shows that using video on a Web your business to individually expected to contribute. But, compelling component to dealership Web not enough to convince them to make the site increases the amount of time a consumer look like in 2009? Close your eyes and more importantly, show them how reaching sites continues to grow at a steady rate. investment in vehicle videos, and some still spends on the site – making it “sticky,” visualize. Lots of happy customers? The their numbers will impact their lives. The At the same time, the public’s interest question what investing in vehicle videos and increasing the likelihood the consumer right inventories? Fabulous bottom line? average technician turning just five more in video sites on the World Wide Web would bring to their business. will submit a sales lead that ultimately can Is your vision one your employees can hours a week can generate an additional overall continues to blossom and shows translate to the bottom line. And that’s the rally around and do whatever is necessary $5,000 more per year in personal earnings. point: Dealerships want their Web site to act to achieve? Then use a good forecasting Show your vehicle salespeople how just as one more calling card for the dealer and process and make your vision a reality. selling two more cars a month will add for doing business with them. Forecasting is about setting those big thousands of dollars to their paycheck by goals and then creating the passion in your the end of the year. Videos are Persuasive employees to embrace and implement the Recent studies by Burst Media also show steps necessary to reach those goals. But don’t settle for just numbers – demand that nearly 55 percent of online shoppers plans and evidence to support the forecast. indicated that a vehicle video made them We recommend starting at the bottom You can’t just say you’re going to sell 100 more likely to consider buying or leasing – how much does the dealership want to vehicles a month and expect it to happen. a model featured in a video. And, unlike make in 2009? Out of that, how much If that was the case, then why not say traditional marketing material, video has a will each department need to contribute? you’re going to sell 200 vehicles a month? very high pass rate from user-to-user. How will the departments achieve those Your final forecasting meeting is for your numbers? What has to be done differently managers to solidify their commitment to A Web site’s success is measured in part next year to achieve those numbers? departmental forecasts and action plans. by how long customers stay on the site Remember hope is not an action plan. and how many leads are generated from it. We suggest holding at least three meetings Adding vehicle videos provides dealerships with your managers. The first will be to Once you’ve settled on the 2009 forecast, with a tool through which to share vehicle explain the process and establish the goals make sure your managers are prepared to information with online customers in an for the dealership and for each department. break down the numbers for each employee engaging way, and in a way that has been Due to the crossover between departments, weekly and that there is a plan in place proven to influence more than half of them we suggest the second meeting be used to review this information weekly with in the purchase decision they make. to exchange information and present the employees. If a tech is falling short any additional ideas relating to expense from his assigned goal of hours produced, When considering vehicle videos for your reduction. Departments will need to share determine what is stopping him from Web site, here are the basics to look for: their forecasts. For example, the service reaching that goal. It is better to find out • Vehicle videos should be short and department needs to know how many new early in the month what the problem is than contain concise, engaging content. and used vehicles the sales department to wait until the end of the month. Listen to • The videos should be refreshed expects to deliver so the service department your employees and they will provide you frequently, with new feature cars added can forecast how much gross profit new with solutions for reaching your forecast. in place of those that have been posted vehicle inspections and internal labor will the longest. generate. This shared information will Keep in mind your forecast is not set • Use actual video footage that shows the solidify your forecast. in stone; there are so many variables, vehicle in real-life motion, rather than including economic fluctuations or major pictures with a moving camera, to keep Your future depends on your employees changes introduced by your manufacturer your customers engaged in the video taking ownership of their role in the which could heavily influence your actual presentation. forecast; from the department managers performance. If it becomes necessary, you • Allow your customers to start the video to those people directly responsible for may need to re-evaluate your forecast and themselves; it shouldn’t begin the generating sales, controlling expenses or take whatever steps are necessary to put moment the page loads. maintaining assets at optimal levels. Every your dealership back on a winning path. one of your employees should play a role Videos can be a fantastic way to interact in the vision. All of your employees should Remember your vision. What better time to with your customers, allowing you to know how many vehicles you want to sell, make commitments to your employees and effectively convey messages to them what CSI score you want to reach, how to your business than today? Start planning without an over-the-top sales pitch. Video is many vehicles service can handle, etc. And your forecasting process, set big, heroic here to stay. Video is growing. Is your Web then the employees need to know how they goals and be ready for 2009. site ready for some action? can help reach those goals. Brooke Samples is the director of Dealer Start with your sales goals. Quantify Service Corporation, a division of NCM Joshua Muller is the product planning your expectations with your salespeople manager for Reynolds Web Solutions. He Associates. She can be contacted at 866.618.8377, or by e-mail at 11 — vehicle, finance, service, parts and 10 can be contacted at 866.386.0702, or by e-mail at jmuller@autosuccessonline.com. collision center. They need to know what bsamples@autosuccessonline.com. www.autosuccessonline.com the #1 sales-improvement magazine for the automotive professional
  • 7. 2.0 FS Search Engine provides full life-cycle tracking of Maximum ROI — More For Less featuresolution every campaign, from the first The newest version released earlier this click-through to sales. It’s fully year has already yielded spectacular results. Marketing integrated into the system so a Dealers who have implemented it see, on dealer can see exactly how average, $8 leads from their own Web sites. much revenue every SEM That’s an average — in many cases lead ad generated. costs are even lower. Additionally, first- party leads close at a much higher rate than How the Next Generation of Search Automatic Refreshing other leads. Compare that to the $20 to $30 of Ad Content per lead costs and lower closing rates of Delivers More Leads with Smart Bidding — Keeping it Fresh Every week, the system third-party lead providers, and TCD truly does become a “no brainer.” and Inventory That Sells Itself monitors all updates made to a Web site; including content, For More information on inventory, specials, new models, Dealer.com, contact us new information on vehicles, etc. at 866.859.6410, or by SusanGivens Then, it automatically refreshes keywords e-mail at dealer.com@ list with Google. autosuccessonline.com. For many Internet managers at dealerships, ads take the customer to the dealership’s keywords get the most click traffic, then connecting users directly to the inventory it’s the great experiment: search engine home page, rather than deep-linking directly provide tools to help dealers optimize the page will result in higher conversion rates. marketing (SEM) and search engine to a page that contains the information they number of clicks. The only problem is that Keeping SEM ads current with inventory, optimization (SEO). Some love it, others are looking for. search engines focus on click volume and however, is the problem. It’s challenging SEM Best Practices: Setting the Standard in are wary of it or don’t understand it, and not on return on investment (ROI). How enough for many Internet managers to • Spend money on advertising while the Search Expertise others avoid it altogether. Also troubling, many firms don’t tell many of those keywords convert? What is update inventory listings every day, let dealership is open. Statistics show that Never content with just “good enough,” dealers where their money is being spent. the ROI for each keyword? You can now alone having to notify an SEM vendor or nine out of 10 potential customers pick Dealer.com set a goal of becoming the The fact is, SEM works. Answer honestly: Dealerships have the right to know have the answers to these questions with spend time creating new SEM ads. up the phone when they see an ad, while automotive industry’s best SEO/SEM Do you think the vast majority of your where every dollar is being spent, what advanced performance analytics that dealers This is no longer a problem. TCD only one out of 10 customers send an provider. To back up this claim, the customers do some online research before percentage goes into the search engine can use to determine the exact value of automatically updates a dealer’s SEM e-mail or fill out a Web form. If the company became a Google AdWords stepping foot onto your lot? In today’s and what percentage the firm is taking, as each keyword in terms of dollars generated campaign strategy based on inventory feeds dealership is closed when that customer Authorized Reseller Partner. In addition, competitive market, dealerships need to well as how much is being spent on all the rather than simply the number of clicks. it receives from a dealership’s system. So calls, they may never get the lead. 45 percent of Dealer.com employees have be using every tool on the Internet to help different campaigns. if a dealer sells that 2006 Nissan Altima • If you see a competitor running a received one or more of the following these customers find them. If not, they get For example, say that “2008 Ford Mustang” and it’s taken out of the inventory, that special on a particular make/model, certifications: left behind. Fortunately, the next generation of SEM gets 50 clicks and “Ford Mustang night the SEM ad with those key words and you know you can beat the price or • Training Certified on Google has arrived. From this point on, dealerships windshield wiper” gets 1,000 clicks. Even will automatically be turned off. The special, here’s a tip: Create an instant AdWords It’s powerful, but SEM isn’t an easy tool for can easily set up and manage effective at equivalent conversion rates, the value dealership will not waste a single dollar on SEM ad promoting a special for the • Sales Certified on Google AdWords dealerships to pick up and use. The biggest campaigns that will not only increase the of selling a car is much higher than that a click-through from an outdated ad, which same and/or similar make/model. If • Account Management Certified on problem most Internet managers have with number of leads, but significantly lower of selling a wiper. But blind search engine translates into extremely efficient and a customer sees your competitor’s Google AdWords SEM is the time involved with setting the average cost-per-lead. Also, and just as optimizers don’t know that, and would bid targeted ad spending. ad and goes online to search for up their own campaigns. It’s not rocket importantly, these leads will close at a much up the term with “windshield wiper” in it. information about the dealer, your ad The advanced certifications require more science, but the volume of data that must higher rate than traditional third-party leads, However, the application’s Smart Bidding Call Tracking and Recording — Who will also appear promoting the same or than 15 weeks of intensive study and be sorted through, combined with updating because the SEM ads that generate the leads “brain” knows the difference, because Called, and For What Product? a similar special — and you may just rigorous testing. More than 90 Dealer. content, reacting to trends and metrics and are very targeted and specific. So what it connects the click expense directly to TCD provides a new level of phone get to capitalize on your competitor’s com employees in technical development, manually removing or adding keywords to exactly is this new generation of SEM? measurable revenue. Smart bidding is tracking so dealers can see detailed ROI advertising. engineering, Rapid Response support, campaigns, all add up to a labor-intensive return based, not click based. for every dollar spent. For each SEM • Know Your Invoice. A lot of solutions sales and marketing and the entire search job. Unless a dealership can allocate a TotalControl DOMINATORTM (TCD), created campaign, the system assigns unique come with hidden fees, which have and account management team have full-time, dedicated staff to running SEM by Dealer.com is an application created Deep Linking — Putting the phone numbers to every search engine for the potential to drive your cost-per- received the advanced certifications. campaigns, they will more than likely fail. to deal with the most common problems Customer Where They Want to Be the sales, service and parts departments. lead rates sky high. You should have Google trainers continue to work closely dealerships experience when implementing TCD creates ads that deep link to the That’s at least 15 unique phone numbers control over your spend and be able with Dealer.com to provide ongoing To avoid this, many dealerships have SEM programs. Unlike anything else on the correct areas of a dealership’s Web site for every campaign. This leads to a to track results, as in phone calls and training and ensure the team stays current hired third-party firms to create market, it incorporates a “big brain” of SEM or microsite. If a person is searching for better understanding of the value each e-mail submissions, so you can see the with the latest trends and changes. and manage their SEO/SEM data that has been gathered from dealerships “brake service Atlanta,” most SEM ads will search engine provider brings to different leads generated for every dollar spent. campaigns. The biggest problem all over the country. More than just an take them to the dealership’s home page campaigns. Your dealership should be aware of the What does that mean to a dealer? The with this strategy is these interface, this “brain” tracks trends and rather than directly to the service page. profitability and effectiveness of your difference between hiring a certified companies are not fully a part metrics, and allows dealers to create effective Statistics show that when customers click Integrated Lead Management SEM strategies. professional vs. someone who does not of the dealership’s Web team. SEM campaigns in minutes. through to a Web site, 25 percent will leave — Tracking Your Campaign • Take advantage of Google. Google know how to design an effective SEM Without knowing the dealer’s after only two clicks. Ads that deep link to TCD’s lead management tracking system possesses 70 percent of the market campaign can cost dealers hundreds, if Web site structure or inventory SEM is now elevated to a new level with the relevant content will retain many more share, which means your SEM not thousands of dollars per month. feeds, third-party firms can’t the following features: users than traditional SEM ads. strategies must utilize the great immediately update campaigns Smart Bidding — Getting the advantage Google can offer your SEM, to reflect what the dealership is Right Words for the Right Price Automatic Inventory Ad Updates as well as your dealership. In addition, attempting to Google — Keeping Up to Date with Your you should submit your business to promote or and other Inventory the Google Local Business Center so sell. Another search Everyone agrees that having ads to target your dealership shows up on Google downside is engines specific inventory is a great idea. If Maps, and also in the “Local Business that most of keep track someone types in “2006 Nissan Altima” Results” section at the top of search 13 12 the links from of which and a dealership has several on the lot, results pages.
  • 8. LS JimAdams leadershipsolution IT IS TIME FOR A LEADER Did you ever people that will find a way to prosper. He 3. Make a Plan wonder why a also said that no matter how good times Make sure you have a mapped-out daily, commercial airline pilot makes so much are, there are people that will mess things weekly and monthly plan to generate the money? I can tell you that it is not because up royally. Face the facts: Some dealers amount of opportunity that you must create they can take off in Tulsa and land in will not survive. Those dealers who do to be successful. Make sure that each Kansas City. It is not because they can show not focus on training and award-winning member of the team is completely bought up on time and they look good in a pilot’s customer service will be doing something in and accept zero slacking. Your people uniform. It is because when things get different next year. It is truly time for a are looking for a leader, and leaders have tough and something unexpected happens, leader. My question is: Are you that leader? a plan. They will follow you if you are they are up to the challenge. The true test competent and confident. of an airline pilot is not when the winds are 1. Stop Whining calm and the visibility is 20 miles. The test You are a leader. Leaders must be 4. Pay the Price is in the turbulence and the thunderstorm. optimists. You can be a realist and an No one promised you it was going to optimist at the same time. Your people are be easy. If you are looking for the easy This past year has created challenges for looking to you for direction. They do not work, you chose the wrong profession. us all. You cannot turn on the television need you telling them how bad things are. Leaders work smarter, leaders work harder without hearing some pretty bad news They are looking for you to show them the and leaders do whatever is necessary to about our industry. I have been in the way. Empathize with the present condition, succeed. retail automotive industry, on the front but give them hope that with the right plan lines for nearly 20 years and I have heard everything will come out in the end. You are in the position that you are in right bad news before. I have seen dealerships now because someone had the faith and fail. I have seen every single dealership in 2. Make a Decision confidence that, no matter how tough times Joplin, Missouri change hands in the past You must decide not to participate in the were, you would find a way to succeed. 10 years except one. I have a crystal clear current crisis. Remind your salespeople If you are a dealer reading this article, understanding of my job responsibility. I every day that sales is a numbers game. your employees and their families are am the leader. People mirror other people’s Each salesperson does not need to figure counting on you to lead them. If you are a behavior. Just as the airline pilot, my test out how to sell 20 cars. They just need to sales or service manager, every employee is in the turbulence and the thunderstorm. figure out how to talk to three people today. is counting on you for direction. They My test is in the calm assurance that if I Focus on the activity, not the result. With are looking to you for answers. Can you just follow my training and react to my the right activity, the results will follow. provide them? professional instincts, I will be able to put Remember — leaders are where they are my dealership in the position to prosper. because most people are not willing to Jim Adams is the general manager for Fletcher Auto Group in Joplin, MO. He can Zig Ziglar once said that no matter how make a decision. Make a decision to focus be contacted at 800.905.0627, or by e- bad times are economically, that there are on daily activities. mail at jadams@autosuccessonline.com. 14 www.autosuccessonline.com
  • 9. STS SeanV.Bradley sales&trainingsolution INTERNET SALES 20 GROUP XI Seek first to knows what their prospects want, and that If the customer says “no” to your question understand, then to means low grosses. “Have you ever purchased a vehicle be understood. This eight word statement online?” then you would ask the “true” can mean the difference between a sale Let me give you an example. Let’s take qualifying question: “What were you and a blown opportunity. The No. 1 reason the most competitive market in the United looking to accomplish by going online?” why prospects don’t buy a car is because States — Detroit. One of my client’s, Dick they are landed on the wrong vehicle. And Genthe Chevrolet averages $1,800 a copy They will tell you exactly what they whose fault is this? The salesperson’s. The on the Internet. There are over 42 other were looking to accomplish and what salesperson didn’t take the time to do due Chevrolet dealerships within a 20-mile their expectations are. Remember the top diligence and properly qualify the prospect. radius of their store. If that wasn’t amazing five reasons why the customer is going We are taught as salespeople to take and enough, they make more gross on the online to begin with: price, availability, keep control of the conversation and lead Internet with their used car initiatives. They convenience, hate car salesman/looking for the customer, rather than listening. We broke the negative paradigm of assuming a different way to do business and research. prepare responses even before the customer all people were looking for was price. They is through speaking. We portray ourselves also stopped stressing the 40 + dealerships Think about it: If you ask someone to care about what the customer is saying around their store and what they were what they were looking to accomplish by nodding our heads, when, in reality, doing. They began focusing on their own by going online and they respond with we are waiting for the customer to stop prospects and the factors they actually have “convenience,” it really doesn’t make speaking so we can implement a closing control over — “circle of influence” versus much sense to jump to price (and with most statement (“Want to take it for a spin?”). “circle of concern.” They focused on taking dealers, that means invoice). It would make the appropriate steps to “qualify” their more sense to structure your presentation The main objective of any successful prospects. to sell all of the convenience you and your business is to exceed a prospect’s dealership can provide, such as filling out expectation(s). But how can anyone meet To be the best, it isn’t enough to just most of the qualification paperwork via or exceed the “unknown”? If a salesperson meet your customer’s expectations; you fax before the customer arrives or taking a does not take the time to first establish the must exceed them. You must supply demo over to them for a test drive during customer’s wants, wishes and expectations, them with some validity as to why they the customer’s lunch break and so on. how on earth are you ever going to exceed should buy a vehicle from you rather than them? your competitor. This is done with their Seek first to understand, then to be dealership’s value package proposition. understood. In sales, it makes no difference For the past 10 years, I have been building This means they sell the “sizzle” of why whether you are on the showroom floor Internet Departments and BDC’s all across the prospect should do business at their or in the Internet department. Salespeople the United States and have come across dealership. Specifically, what is their are too quick to splurge information to a the same misinformed assumption — “The differentiator from all of those other 40+ prospect and they do not spend enough time only thing people are looking for on the surrounding Chevrolet dealerships. qualifying them by trying to identify their Internet is price.” In fact, statistics show wants, wishes and expectations. In reality, that only 20 percent of people who shop Here is a simple qualifying question you a customer will sell themself if you listen online are solely price motivated. So what can ask your prospect: “Have you ever hard enough. I strongly suggest that if you are the other 80 percent looking for? purchased a vehicle online?” want to sell more cars, more profitably and • Availability, Convenience, Research, more often, you practice your listening Hate car salesman / Looking for a If they say “Yes,” follow with, “Great, and qualifying skills. Don’t just hear your different way to do business. where did you purchase that vehicle, and prospect; understand your prospect. what did you like about that experience?” Sean V. Bradley is the founder and CEO Dealers are consumed with the inaccurate Whatever they respond with, make sure of Dealer Synergy, a nationally recognized fact of price being the sole reason why your dealership does that too. training and consulting company in people are going online, and the result is the automotive industry. He can be that dealers don’t qualify their prospects Then you transition to your value package contacted at 866.648.7400, or by e-mail at properly. The dealer assumes he or she proposition. sbradley@autosuccessonline.com. 16 www.autosuccessonline.com
  • 10. LS STS StephenR.Covey JasonBlair leadershipsolution sales&trainingsolution BEYOND THE MORE TIME FOR RED PERFORMANCE REVIEW FLAG COMPLIANCE In my town, there’s machine. If you’re a business leader in the smart, you will understand as much as The FTC has tools, but will not make you compliant. look for potential Red Flags in your business. a lawn service that 21st century, you know that employees are you possibly can about that customer’s announced that the comes by three or four times a year to by far your most important asset to your idea of good value — about the “win” mandatory deadline for meeting the Red Flag Pay attention to what is out there and examine the grass for diseases, apply a dealership. You treat them as volunteers, for the customer. The same is true of Rule has been delayed until May 1, 2009 remember your dealership’s livelihood is at Jason Blair is the president of little fertilizer and some other treatments just as you treat customers as volunteers, salespeople. Intelligent leaders seek to (the deadline was to be Nov. 1, 2008). While stake. Do not ignore this mandate; start your Dealerspan LLC. He can be contacted at to keep things going, and after about 10 because they choose to volunteer the best deeply and accurately understand the this gives dealers some breathing room in identity theft prevention program now and do 866.618.8235, or by e-mail at minutes, head off to the next lawn. part of themselves — their hearts and “wins” for their sales staff. Instead of creating an identity theft prevention program, not forget to train your staff appropriately to jblair@autosuccessonline.com. minds — to your dealership. And they have reviewing performance, they sit down putting it off and gambling that the FTC will This also is how performance evaluations more choices than ever about where and with their salespeople and make “win-win never come to your dealership to check isn’t are generally done in most organizations. what they will volunteer. agreements.” The salesperson defines what a good idea. The odds may be on your side, Every year or so, the boss does a the win is for him or her, and the leader but know this: You are risking a great deal. performance review on the employees. I was in a group once where someone defines what the win is for the dealership. We get checked off on a 10-point scale or asked, “How do you shape up lazy and The fine that the FTC can levy on a business some other device. The boss drops a little incompetent employees?” One man A win-win agreement always contains that has violated this federally mandated encouragement on us — or some other responded, “Drop hand grenades!” Several the same basic elements. First, you define law is $2,500 per “knowing” incident. treatment — to keep things going. It takes others cheered that “shape up or ship together the goal of the agreement — the “That doesn’t sound that bad,” you might about 10 minutes, and then we can all get out” approach to supervision. But another desired result. Then you define, again be thinking to yourself. “I mean, it’s a back to work. person in the group asked, “Why don’t you together, the guidelines, resources and tremendous hassle to put this identity theft do that to your customers? Just say, ‘Listen, accountability mechanisms you will use prevention program in place — I’ll just The annual, semi-annual, quarterly or if you’re not interested in buying, you can — that is, how and when you will account pay the fine instead.” What you may not whatever performance review is universally just ship out of this place?” for progress on the goal. Finally, you define understand is that what the FTC is defining a disliked. Employees are confused, because the wins for both of you if you achieve the “knowing” violation as every finance or lease they don’t understand what they’re being He said, “You can’t do that to customers.” goal — and the consequences if you don’t. deal that takes place after the deadline. So, evaluated on. Bosses hate doing it, because say you sell 100 cars a month and you finance they don’t believe in the process, and they “Well, how come you can do it to your Developing win-win agreements is 50 percent of them. That’s 50 “knowing” fear the confrontations that sometimes arise. employees?” the central activity of good leadership. violations. Multiply that by $2,500, and you Employees manage themselves within know why this is a bad risk idea. The old notion is that the leaders evaluate “Because they work for you.” the framework of the agreement. Leaders Now you may be asking yourself, “I need people’s performance, sometimes using keep the resources flowing and the a Red Flag solution for my dealership, but a set of subjective criteria that is sprung He answered, “Are you kidding? You can’t pathway clear. And when it comes time I don’t have the resources to put it together. on them at the end of the reporting find good people these days. There’s too to do the performance review, there’s no Where do I start and what do I look for?” period. This, of course, is absolutely much turnover, disloyalty, absenteeism, longer a visit from the lawn inspector. The insulting, which is why so many managers moonlighting — people just don’t care employees evaluate themselves. When looking for a Red Flag solution, themselves don’t get good performance anymore.” dealers should look to address some of the scores from their people. Stephen R. Covey, Ph.D., is co-founder tougher and more time-consuming aspects The top leaders of the 21st century realize of FranklinCovey, and is the author of of compliance, such as: The old-time performance review has that the implied contract between supplier the best-selling The 7 Habits of Highly • the process and time involved in become a meaningless ritual, a holdover and customer also is in force between the Effective People. He can be contacted at developing the required identity theft from the Industrial Age mindset of treating leaders and the led. A customer comes to 866.892.6363, or by e-mail at prevention program. people, like interchangeable parts in a you to buy a vehicle, for value. If you’re scovey@autosuccessonline.com. • assessing your business risk level when it comes to identity theft (in all locations) • the training of all necessary staff • improving overall dealership knowledge with informative data to assist the staff in detecting Red Flags in their dealership When all is said and done, a careful approach should be used when choosing an outside vendor to service your Red Flag needs. A company may tell you that they have a Red Flag solution for you, but if they do not offer you a turn-key solution or means of building your identity theft prevention program, then you will not be compliant with the Rule. There are systems 19 18 out there that assist you in identifying potential Red Flags, some of which are great www.autosuccessonline.com the #1 sales-improvement magazine for the automotive professional
  • 11. LS MarkProctor leadershipsolution IT’S TIME FOR A DECISION Are you in or out? In 1975, the dollar amount estimated to Toyota, any manufacturer or dealership. The decisions you train a new sales person was $7,500. A Our competition is the salesman down the make now will determine your future or large portion was the amount of business road with his hands in his pocket spouting create a self-fulfilling prophecy. You, and lost due to rookie mistakes of not properly the infamous greeting “Can I help you?” only you, will decide to stay and fight the qualifying, taking short cuts, etc. I believe good fight with the tools needed in a down the amount was actually higher then, and it During a downturn, the best dealers market, or throw in the towel and walk is hard to comprehend the cost today with survive, capitalize on what they have and away. many dealerships’ staggering turnover. prepare for better times with the help of the best consultants, trainers and information Every previous downturn from the 70’s oil Many consultants blow in, blow off and available. However; tough times also embargo, to the 80’s interest rates to the blow out with your hard-earned dollars generate a deluge of snake oil salesmen — 90’s over-saturated market has produced providing a few minutes of motivation who have never run a successful dealership stronger dealers. Now is the time to invest followed by a “let down” when measurable or managed a department — offering the in your people and your future. results are not achieved. We then ask latest and greatest gimmick, promotion or ourselves if the money could have been idea or offer a team of unknowns to do it You do not build a business. You build an utilized more effectively. Whether you for you. There is too much at stake not to organization of like-minded people who sell 50 a month or 500 a month, the only know who your partners are or who is in builds your business and customer base that question is how much do you keep at the your store. supports you through the toughest times. end of the day. There will be 13 million vehicles sold this We can never be better than the people year. The question is: How much of your A few years ago, someone thought you with whom we surround ourselves. If you “unfair share” of the market are you going could and should sell cars like stereos. are considering a consultant, marketing to capture or give to the competition? That did not work out quite as expected or sales training group, be sure to ask and business plans were modified. Great “What qualifies you to tell me how to run For years, most dealerships have had one ideas are a dime a dozen. Implementation my store?” Pick your partners carefully. common complaint: “I can’t hire good is everything. Why do we keep trying to Working with someone who actually salespeople.” How many times do we reinvent the wheel? Cars are sold one at a understands the car business and needs of hear that and other misconceptions in our time. This business is built on relationships. the dealer will pay huge dividends in the business? There has never been a better time end without headaches and surprises later. to recruit and train quality people looking We are blessed to be in the greatest for an opportunity. There were 159,000 business in the world. Most of the people You will never save yourself into a people who lost their jobs last month? I we know will be in the market for a new profit. You have to sell yourself into one. think that was just in the car business. All or used vehicle. There is also a pent-up Surround yourself with the right people kidding aside, it is tougher now than it’s demand from people waiting for the next and you will be able to survive market ever been and might get worse before it gets big thing. News flash: There is no next downturns and the occasional bump in the better. The good news is that you are sitting big thing. What they have not found is a road. There is an old saying: If you always on a gold mine. You have to sow the seeds “transportation specialist” and “dealer for do what you’ve always done, you will now to reap tomorrow’s benefits. life.” You will never have customers for always get what you’ve always got. Not life without salespeople for life. today. You will not get a fraction of what Hire the right candidates; train and pay you did in the past. It is time for a change. them. Sound too simple? It’s not. If a The most important thing we have to Make a decision. Are you in or out? salesperson does not succeed in our change now is how we recruit, train, business, it is not their fault. It is our fault. motivate and pay our people to create We hired the wrong person to begin with, the buying experience we require for our did not provide the proper training or did customers. They go hand in hand. The not pay them fairly. If we do not pay a buying experience is what separates us Mark Proctor is the president of Preferred person worth keeping, someone else will from the competition. Dealer Services, Inc. He can be and capitalize on your generosity to train contacted at 866.922.3541, or by e-mail salespeople for them. Our competition is not between Honda or at mproctor@autosuccessonline.com. 20 www.autosuccessonline.com