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

1. “A key element to this slice cure is...” pg.9
.biz
October 2003
E NSURETY
G R O U P, I N C .
Customer Retention: Expense Control:
A Profit Opportunity Employee Efficiency
Make Your Dealership
Work for You
How to Seal the Deal
in Seven Seconds
How to Overcome Any
Objection in Six Easy Steps

3. manager
I N S I D E
driventeam operation
uccessrevenue automobil
4 Transition From the Demo to the Desk
solutions
Steve Hiatt
6 Gaining Visibility Brian Tracy
7
profitprofessional
Developing an Effective Sales Training Program Terry L. Isaac
8 Never Slice Again Brian Manzella
10 Brand Yourself David Thomas
sales
11 Get More Bang for Your CRM Buck Brian Ankney
12 Philosophy of Success Mark Tewart
13 Implement Your Own Menu Presentation Frank Martin
14 Leadership vs. Management Joe Verde
16 Customer Retention: A Profit Opportunity Kevin Smith
18 Sales From the Internet: How to Limit Spam Dennis McDonough
19 Expense Control: Employee Efficiency Timothy Gilbert
20 Make Your Dealership Work for You Mark Ludwig
22 Achieve Successful Transitions Tony Ray Munson
23 Making Manufacturer Certified Used Cars Work for You Don Elliott
24 How to Overcome Any Objection in Six Easy Steps George Jackson
26 How to Seal the Deal in Seven Seconds Lydia Ramsey
27 You Get What You Ask For Robert Westall
28 Effective Sales Meetings Fran Taylor
A cure won’t just save children.
Mary Tyler Moore
It will save childhoods. International Chairman
These kids live with 4-6 insulin injections
daily. Plus, they face the threat of blindness,
heart attack, kidney failure and amputation.
Their only hope is research. The Juvenile
Diabetes Research Foundation is closer than
ever to finding a cure. Help us help them. Call
1.800.533.CURE or visit www.jdrfe.org dedicated to finding a cure
Psalms 37:3-5 Patrick Luck, Editor & Publisher
inventory
Success Driven Solutions
• pat@autosuccess.biz
Trust in the Lord, and do good; so
Susan Goodman, VP of Operations
you will dwell in the land, and enjoy • susan@autosuccess.biz
security. Lindsay Porter, Copy Editor
Take delight in the Lord, and he will 756 South 1st Street, Suite 202 • lindsay@autosuccess.biz
give you the desires of your heart. Louisville, Kentucky 40202 Courtney Hill, Advertising Services
• courtney@autosuccess.biz
Commit your way to the Lord; trust in
Toll Free: 877.818.6620 Sara Zozula, Advertising Services
him, and he will act. • sara@autosuccess.biz
Facsimile: 502.588.3170
In God We Trust Web: autosuccess.biz
Thomas Williams, Creative Director
dealer
• thomas@autosuccess.biz
AutoSuccess Magazine is published monthly at 756 South First Street, Suite 202, Louisville, Kentucky, 40202; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or
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Postmaster: Send address changes to AutoSuccess Magazine, 756 South First Street, Suite 202, Louisville, Kentucky 40202.

4. sales and training solution
SteveSteve Hiatt
By Hiatt
Transition From
the Demo to the Desk
Everyone focuses on The rabbit’s foot: “Sue, could you pull the is much more comfortable, so get out of the
the steps to the sale. keys from the ignition there?” (She will pull car, and walk inside, they will follow.
You should never them and start to hand them toward you.)
skip steps, it costs “No Sue, those are for you, in fact, put them One other way to keep the customer
you money. Nearly in your purse or your pocket right away, comfortable and impressed with you as a
everyone has heard treat them like a lucky rabbits foot, and just professional is to have everything ready to
about the dangers of skipping steps in all rub ‘em every once in a while for good luck help with their purchase. Riffling through
our car guy lingo, “A solo demo equals no while we are wrapping this up.” drawers, looking for pens and a write-up
dough.” and “Shortcuts equal throat cuts.” sheet while yelling, “Hey Bill, you got any
Since every step is important, why is the This is beautiful; your customer just took credit apps?” doesn’t generally illicit high
skill of how to get your customers from the even more mental ownership. You aren’t levels of trust.
demo to the desk skipped over so often? getting those keys back now, which is just
what you want. Plus, you have now created Keep a plain manila folder on top of your
The transition from the demo to the desk an emotional anchor for later when you are desk with your write-up/four square, credit
is where, all too often, a deal is made or closing at the desk. I can’t tell you how application and trade appraisal sheet right
lost. When you think about it, isn’t it really many times I have left the desk, walked two there. Also have a holder for pens right on
the customer’s last chance to back out and steps, spun around and asked my customer top of your desk, so you aren’t scrounging
still save face? Once you get the customer if they still had the keys. Once they say yes, for a pen. Move the folder over, open it
to paper the levels of commitment in I say “Well start rubbing them before I go up, and ask, “What is your middle initial?
their mind skyrocket. Too many sales are have this put in the computer.” For a second Do you use it legally? Great, let me make
missed, because there is no practiced plan bump, sometimes I take the keys away and a note of that.” You are now successfully
at this stage. And if you are still using the hand them to the kids while saying, “Mom, completing a write-up.
old, “Should we go inside and see if we can needs some help rubbing here. And mom,
make the terms and figures agreeable?” line, sometimes the best luck is being flexible All of these techniques have been used by
ditch it. That script is so old the customers when the timing is right.” others and myself at our dealership and have
have it down better than we do. a great level of success. It is so important,
Now that your customer has put the keys whether you use these techniques or others,
Momentum is the name of the game here, in their pocket, you need to transition from that you use something. Get away from
and at the same time, you want to keep the the car to your desk with as few hiccups as the big obvious trail closes that have been
customer at ease so their defenses stay as possible. Since people fear the unknown, around for decades that every customer
low as possible. Let’s go through some make the process known to them. It will knows (and resents). Practice so that
simple techniques that will help. First, keep them comfortable, make the transition you are comfortable. Your comfort and
you must be on the demo ride with your easier, and you will feel in ultimate control. confidence will make or break you, because
customer. Second, you using a ‘sold line “Sue, the next step is for us to go inside and today’s customers are more sophisticated
close’ coming in from the demo to the for me to collect a little information from than ever.
dealership. A quick review of a sold line you, so you can start enjoying your new
close is: car as soon as possible. Are you going to Steve Hiatt is the General Sales
enjoy it for a short drive to dinner, or are Manager of Hiatt Pontiac GMC, Hiatt
1. A series of yes questions you just going to cruise the waterfront?” Outlet and Hiatt of Auburn. He can be
2. A positive statement Waterfront. “Great, follow me.” Your contacted at 866.265.5616, or by email
3. A sold line hook customer now knows what is going on and at shiatt@autosuccess.biz.
4. An either/or closing question.
It works like this, as you are driving
F&I
down the road, “Hey Sue, isn’t that air America's Premier Specialist Program Serving Dealers Nationwide Since 1998
conditioning working great? Didn’t you
Solutions, Inc.
love how the lumbar support felt on your
back? And with the great fuel economy,
isn’t it going to be great saving some money
every month? Sue, it looks like we found
the perfect car for you, as you pull into the TEMPORARY PLACEMENT OF F&I SPECIALISTS AND SALES DESK
dealership there are three open parking
spots on the left, that are the sold line, just LONG TERM OR SHORT TERM
pull in there. Oh, I almost forgot to ask, is Is Your Bottom Line Taking a Dive Because Your F&I Office is Short Staffed?
your insurance card with you, or do we By the day, by the week, or by the month we're reasonable, efficient, customer oriented and bottom line motivated.
need to get it out of your old car before we Our highly qualified staff can meet all your finance needs. We have established rapport with many of the same
wrap things up?” banks you use and we offer a list of references.
After the customer has parked in the sold
Before you lose another dime Call Frank Martin 866.247.9361
line, do the following steps:
let's talk about your F&I Solutions. financepool@aol.com www.financespecialistpool.com
4 www.autosuccess.biz

5. Taylor Techniques, Inc.
AUTOMOTIVE SALES AND MANAGEMENT TRAINING
The Hottest In-house Trainer in the Country!
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How would it make you feel if
your sales people sold at least
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IF YOU DON’T MAKE IT, YOU DON’T PAY!
I’ve managed some of the biggest stores
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cars a month for three years. How many
trainers have done that?
I challenge any trainer in the country to
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Taylor Techniques helped us sell 198 vehicles in the first month, with an all-time
gross profit record. The next 5 consecutive months we beat that record. Last
Fran Taylor
is the President
month we sold 248 vehicles with the highest grosses ever. How would you like and CEO of Taylor
those results in your dealership? Taylor Techniques, you guys are the best! Techniques, Inc.
He can be contacted at
Michael Hoops, General Manager of Marine Chevrolet, Jacksonville, NC MrFranTaylor@aol.com
866 873 0041 Call Today!

6. leadership solution
BrianBrian Tracy
By Tracy
Gaining Visibility
Have you noticed your external dress and appearance are participate in charitable organizations and
that some workers totally a matter of personal preference. professional associations.
receive more Through their choice of clothes, their
promotions and grooming and their overall appearance, Be able to set priorities.
greater pay than individuals deliberately make a statement Learn how to separate the relevant from
their colleagues, this despite the fact that about the kind of people they are. The way the irrelevant when facing the many tasks
they are apparently not as competent as you look on the outside is a representation of the day. Managers place very high
you? This doesn’t seem fair. Why should of the way you see yourself on the inside. value on a person who can set priorities
some people get ahead when others who It’s a good idea to dress the way the senior and move quickly to get the job finished.
seem to be working much harder and people in your company dress. Dress for Dependability in job completion is one
even longer hours get passed over for the position two jobs above your own. of the most valued traits in the American
promotion and the additional rewards that work force. When your employer can
go with it? Join professional associations. hand you a job and then walk away and
Research professional associations never worry about it again, you have
The fact is, to be a great success, it is connected with your business or field. moved yourself onto the fast track, and
important not only to be good at what Begin by attending meetings as a guest your subsequent promotion and pay are
you do but also to be perceived as being to carefully assess whether or not a virtually guaranteed.
good at what you do. Human beings are professional association can be of value
creatures of perception. It is not what to you. Determine if the members are Upgrade your work-related skills.
they see but what they think they see the kind of people you would like to Continually look for ways to keep
that determines how they think and act. know and are well established in their your skills current, and make sure that
If one person is perceived as being more careers. Then, if you have decided that your superiors know about it. Look for
promotable, then it is very likely that becoming known to the key people in this additional courses you can take to improve
he/she will get additional responsibilities association can advance your career, take at your job, and discuss them with your
and more money, even though there are out a membership and get involved. Pick a boss. Ask him/her to pay for the courses,
others that can do a better job, if given the key committee and volunteer for service. but make it clear that you’re going to take
chance. Find out which committee seems to be them anyway. Also, ask your boss for book
the most active and the most influential and audio program recommendations. Then
Fortunately, there are several things that in that organization and then step up to follow up by reading and listening to them
one can do to increase visibility and the plate. Volunteer your time, expertise and asking for further recommendations.
accelerate the speed at which they move and energy, and get busy. Attend every Bosses are very impressed with people
ahead in their career. meeting. Take careful notes. Ask for who are constantly striving to learn more
assignments, and complete them on time in order to increase their value to their
Develop competence. and in an excellent fashion. This gives companies.
Determine what parts of your job are you an opportunity to perform for other
most important to your boss and to your key people in your profession in a non- Develop a positive mental attitude.
company and then make the decision threatening environment. You give them People like to be around people they like
to become very good in those areas. a chance to see what you can do and what and tend to promote them. A consistent,
You must be perceived as being very kind of a person you are. You expand your persistent attitude of cheerfulness and
competent at what you do. That perception range of valuable contacts in one of the optimism is quickly noticed by everybody.
alone will bring you to the attention of most effective ways possible. The people When you make an effort to cultivate an
more people faster than you can imagine. you get to know on these committees can attitude of friendliness toward people,
The perception of excellent performance eventually be extremely helpful to you in they, in turn, will go to extraordinary
will open up opportunities for greater your work and in your career. efforts to open doors for you.
responsibilities, higher pay and better
positions. Becoming good at what you do Join a well-known, In the final analysis, taking the time to
should be the foundation of your strategy charitable organization. become an excellent human being will do
for gaining higher visibility and rapid Become active by donating your services more to raise your visibility and improve
advancement in your career. to its annual fund-raising programs. your chances for promotion than will any
You may not be wealthy now, but you other single thing that you can do. You can
Pay attention to your overall image. do have time, and your willingness to do it if you really want to.
How you appear to others makes a real give of yourself will soon be noticed by
difference. A recent survey of personnel people who are higher up. Many men and
executives found that the decision to women with limited contacts and limited
hire or not to hire is made in the first 30 resources have risen to positions of great Brian Tracy is the Chairman & CEO of
Brian Tracy International. He can be
seconds. There are many elements of your prominence as the result of getting to contacted at 866.300.9881, or by email
life over which you have no control. But know the key community leaders who at btracy@autosuccess.biz.
6 www.autosuccess.biz

7. sales and training solution
TerryByL. Isaac
Terry L. Isaac
Developing an
Effective Sales Training Program
It’s not how many opportunity to work for them and earn the results of the training. Track the
sales people you their business. Give the customer a following:
have but how reason for doing business now.
skilled they are 6. Negotiation the terms - negotiate 1. Prospects
that will determine the terms between the buyer and 2. Demos
your ROI. Having the seller by establishing a neutral 3. Write-ups
a training program in place will not only position between the parties. Achieve 4. Sold
increase your profitability but the entire profit, then close the sale. 5. Gross
future of your dealership. Providing top Add more performance objectives to
customer service to your customers starts the job description as needed. This tracking will give you the information
with the person you put in front of them. you need to show your ROI and to retrain
Assuring that you maintain a high level Objections that the sales people will the employee who will need further
of CSI, as well as profitability training is encounter along the way should be training. It’s easier to retrain than to hire a
invaluable. The best way to develop the implemented into their performance new employee.
program is produce a flowchart; this will objectives as well. If a sales person cannot
give you a process to follow step-by-step. handle objections he/she will become a Developing an effective training program
clerk, and you’re training sales people. will set the stage for the success and
Analyze the job description. growth of your dealership today and into
The job description of the sales person Design and format instructional materials. the future. It’s not an option.
starts with a position description, when Format instructional material within a
formatting this position you must have the manual that details the job description and
input of all managers: the GSM, the GM performance objectives to be implemented Terry L. Isaac is the Corporate Sales
and the Owner. If everyone is not on the by every sales person hired. Review Trainer for the Neil Huffman Auto Group.
He can be contacted at 866.265.4680, or
same page, it will only reduce the results the instructional manual for soundness, by email at tisaac@autosuccess.biz.
you’re aiming to achieve. Take each step effectiveness, wording and clarification.
that the sales person must achieve with the
customer, and write them down, agree and Train the trainer.
disagree until you’re on the same page. Selecting the right trainer is important
to the success of your program. The
individual you select must have the
Identify performance objectives. following:
Identify the performance objectives that
you want your sales people to achieve. 1. Outstanding track record in above
Address each item on their job description average sales.
thoroughly. 2. Good communication skills.
3. Motivational speaking skills to
Here are some examples of performance inspire people.
objectives: 4. The ability to master a process.
1. Meet and greet – to give the Heard the buzz? Find out for yourself what it’s all about. CarChip
customer a positive first impression of Develop an interview process. is “a useful tool for the professional,” says one service manager.
“Technicians dealing with intermittent issues can program CarChip to
the sales person and the dealership. Format an interviewing process to select monitor suspect circuits, and then return the vehicle to the customer.”
2. Build a relationship with the an employee that can perform all items on It’s affordable, so there’s no need for large deposits. And once
customer - the customer must feel the job description. This will lead you to a your customers find out about it, they may very well want one for
themselves! Attractive packaging and full-color point-of-sale display
comfortable with the sales person they qualified candidate for the job. help make the sale—adding to YOUR profits!
are working with. Establish a positive Monitor any 4 out of 23 possible engine parameters including:
feeling between the sales person and Deliver training.
• RPM & engine load • Fuel trim • Intake air temp
the customer. People do business with Start with classroom training by putting • Throttle position • Battery voltage • Intake manifold pressure
the people they like. the training manual on overhead • Fuel pressure • Timing advance • Air flow rate
• Fuel system status • Coolant temp • Oxygen sensor voltage
3. Select the right vehicle – find the transparent sheets. Have the students take
Plus trouble codes, freeze-frame sensor readings, speed, distance,
right vehicle to meet the customer’s notes (they will retain 23 percent more and accels & decels. Up to 300 hours of trip data—all for just $179!
needs. Ask the right questions and with note taking). Teach one step at a Plugs instantly into OBDII port. Download to PC for
detailed analysis and graphing.
listen to their needs. time, students learn better with a step-by- ner
Win
4. Demonstrate the vehicle - show step procedure. Role play each step; have Ask how YOU can become d
eere
the features and benefits to establish the student perform the process over and an authorized reseller! Engin duct
Bestew Pro
N
value and justify cost. Find the hot over until they are comfortable. Film them
points of the customer and sell the implementing the process, this will give TM
™
AUS0310
sizzle to motivate them into making you a view of their progress in training.
the decision to buy. Davis Instruments
3465 Diablo Ave, Hayward, CA 94545
5. Ask for the sale – the sales person Track the results: ROI. 866.297.3152 • www.carchip.com
must ask the customer to give them the Develop a tracking program to determine
october 2003 7

8. golf tips
Brian By Brian Manzella
Manzella
Never Slice Again
Do you slice? Most Period. Fix the clubface, and the slice goes
golfers do. Even bye-bye forever. The compensations will 1
some people who often also go away quickly when they are
hit the ball right- no longer needed.
to-left are just
slicers with enough The first step is to take any compensation
compensation to turn the ball the other out of your grip. You want a classic neutral
way. Believe it or not, fixing a slice is grip (see AutoSuccess Magazine Sept. 03).
usually pretty easy. Often, one can make a Once this is done, you want to learn the
permanent improvement in the first lesson. all-important motion of the right wrist.
It’s easy, because there is only one thing Holding the club out in front of you, with 2
that must be done correctly to correct the the shaft level to the ground and the score
problem. Most golfers have no idea what lines vertical to the ground (PIC 1), move
it is or how to do it. the clubhead backward by bending the
right wrist straight back while you bend
Why do you think you slice, because you the right elbow toward you. Your hands
come ‘over-the-top’? Reverse Pivot? Cut should stay directly in front of you as you
across the ball? ‘Hang back’ on your back do this (PIC 2). If you do this correctly,
foot, etc.? the shaft will stay parallel to the ground,
and the clubface will remain vertical to the 3
Nope. You may do one or all of the above, ground. This is exactly the motion your
but these ‘flaws’ don’t cause the slice, you hands should do during the backswing.
do them because you slice.
Most golfers incorrectly ‘cock’ their right
You slice, because the clubface is too open. wrist, which immediately bends the left
4
5
6
8 www.autosuccess.biz

9. continued
wrist (PIC 3). This ‘double wristcock’ puts wrist bent (PIC 7). The clubface needs to
the clubface in a toe down position at the turn toward the ground past the ball on the 7
top, with a bent left wrist and a flat right way to pointing toward the target. This
wrist (PIC 4), the exact opposite of the swivel position should consist of a still
correct hand conditions at impact. flat left wrist and a ‘fully rolled’ whole left
arm (PIC 8). As the club nears the finish
By bending the right wrist and twisting the the left thumb should be under the club,
clubface away from you as you swing the and the left forearm should point straight
club to about chest high on the backswing toward the ground.
(PIC 5), you put the clubface in a far less
open position. The completed backswing After making these adjustments, most
should have a flat left wrist and a bent slicers will be ex-slicers who need an
right wrist, with the clubface ‘matching’ improved impact position to keep from
the angle of the left wrist and arm (PIC hitting the ball too right to left, a problem
6). Often, this ‘twist-away’, results in a that most slicers would love to have.
slightly arched left wrist at the top. But
that’s not a bad position to be in as you Next month, we will learn to lag the
learn to make your hands do the opposite clubhead and really compress the ball
of what they were doing before. through impact, just like the pros.
A key element to this slice cure is to ‘hold
the twist’ into the downswing. The clubface 8
should look away from you halfway down,
just as it did halfway back.
Often, these adjustments will fix the slice
by themselves. But, most golfers need the Brian Manzella is a PGA Teaching
further ‘insurance’ of a proper swivel of Professional. He can be contacted
the hands as the club travels to the finish at 866.873.0036, or by email at
after impact. Through impact your left bmanzella@autosuccess.biz, or visit
wrist needs to remain flat and your right www.brianmanzella.com.
october 2003 9

10. sales tips with David Thomas
DavidByThomas
David Thomas
Brand Yourself
How would you like Branding yourself can make you more occupation.
to brand yourself as money than your name ever will. But do If you don’t believe in your product
the ‘Honda Guy’, you know how to brand yourself? How and yourself, no one else will.
the ‘Mercedes do you become the expert? How do you 2. Eat, breathe and wear your logo.
Lady’, or the ‘Ford become the topic of conversation at social Do you proudly wear your company
Truck Guy’? How events? brand on your leisure time?
would you like to be recognized and 3. During social events, etc.
mentioned everywhere you go as ‘The Car Here are some tips: Buy a couple of extra shirts and give
Person’, the automotive ‘go to’ guy/ gal? 1. Be proud of your product and them to key centers of influence to
promote you and your product.
4. Drive what you sell.
Consider using valet parking at key
social functions and tipping a little
extra to park your car in front for some
great exposure. It’s a rolling billboard.
5. You must enjoy talking about cars.
Even after a 12-hour day at the
dealership, be enthusiastic and ready
to discuss cars at dinner and social
functions. This could be your best
source of prospects and referrals.
6. Get involved.
Give back to your community.
Volunteer. Chose to involve yourself
in an organization that you will enjoy
participating in. You will be rewarded
for your energy and efforts with
exposure and recognition.
7. Show appreciation.
Let everyone know that you really
appreciate their referrals and that you
need them.
8. Budget for self-promotion.
Set aside $50 to $100 per month
for personal advertising and self-
promotion expenses.
Some examples are:
• Ad in community bulletin
• High school program
• Church, PTA or Alumni Newsletter
• Classified ad
• Radio traffic spot sponsor
• Charitable event or auction
Ask yourself, “What group can I identify
with, that I will gain from repeated
association with?”
Make an investment in your future sales.
Above all, ask yourself every day, “What
can I do to meet new people and promote
my love of selling cars today?”
David Thomas is the Owner of Subaru
of Dallas. He can be contacted
at 866.429.6803, or by email at
dthomas@autosuccess.biz.
10 www.autosuccess.biz

11. marketing solution
Brian Brian Ankney
By Ankney
Get More Bang
for Your CRM Buck
Keeping in who only shopped. A CRM system will
contact with your combine all who visit sales and service
customers by using to produce a massive database for future
a CRM system is a marketing. Direct mail can be done in
good idea, but how house with much lower expense and better
long will it take to notice a measurable results by marketing to those who already
benefit? By the time the buying cycle shop your store. Emails with current sales
repeats itself, the market and your incentives can be sent to every person that
business have changed. The benefits did not buy a car in the past 120 days in
from CRM are too far in the future to less than five minutes with absolutely no
accurately measure. The data collection expense. Service specials and coupons
and process changes associated with can be emailed to every sales and service
CRM offer many peripheral benefits that customer and shopper every month.
can be enjoyed in the short-term. Don’t
miss out on the short-term benefits that A commonly overlooked opportunity
come with implementing a CRM system. when implementing a new CRM system is
skills improvement. There are many stores
The easiest and fastest benefit to realize is where the sales people are telephone
showroom traffic control. More important handicapped, at best. Giving sales people
than bringing more customers into your a bunch of tasks to make calls will not
store is selling those who are already there. bring more customers back unless you
This is achieved by getting a manager train them to make good follow-up calls.
involved in every sales opportunity. By Work with your management team to
collecting customer information at the develop some effective telephone scripts.
point of contact, a real-time log for phone, Add phone training to your morning
floor and Internet ups becomes a reality. meetings.
Managers should be trained to use this
log to maximize every customer contact. Finally, the implementation of a CRM/
In the first hour, managers should review showroom traffic control system will
every contact on the log and make sure change the tone of your showroom floor.
that every avenue is exhausted with every Too often, sales people do nothing,
customer. It is important to collect cell because they don’t know where to
phone numbers to enable manager calls start or what to do. By clearly defining
to customers who have just left the store. your sales people’s daily activities
Grab sales that would have otherwise and using a software package to direct
eluded you by second facing every sales and monitor their progress, your
opportunity. showroom floor will be transformed
into a beehive of employees constantly
A second benefit is ensuring proper working toward additional car deals.
and consistent follow-up on all sales
opportunities. Most sales people will The opportunities provided by a well-
strongly follow-up one third of the structured CRM/showroom traffic control
unsold traffic, the ups they think they system within any store are infinite. It
can sell easily. These are the people who is important to benefit from as many as
are missing a spouse, a trade or maybe possible.
a cosigner. The other two thirds receive
minimal follow-up and thus few return Next month, we will discuss using your
to purchase a vehicle. By enforcing the CRM to raise gross profit by improving
unsold follow-up rules set forth in a CRM walk arounds and overall sales processes.
system, all unsold traffic will receive
consistent follow-up and more can be
brought back into the store to buy.
Another benefit is the collection of
customer information from both those
who buy and those who do not. Traditional Brian Ankney from AutoClick can be
DMS systems collected only sales and contacted at 866.247.9587, or by email
service customers but ignored those at bankney@autosuccess.biz.
october 2003 11

12. sales and training solution
Mark Tewart
By Mark Tewart
Philosophy of Success
Obtaining success Learning what not to think or do can be as 4. Misunderstanding value.
always boils important as what you should think and do. “If someone will give me a chance,
down to one thing Here are some examples of unenlightened, then I can succeed.” “The marketplace
– philosophy. The negative philosophies to avoid in order to cares about your seeds, not your
choices you make gain success: needs” – Jim Rohn
under free will are usually based upon your 5. Being skeptical.
own personal philosophy. Your philosophy 1. Placing blame. Educated decisions are necessary, but
is molded from education, experiences The “It’s not my fault syndrome.” It’s skepticism obscures education.
and relationships during the course of the dealers, managers, manufacturers. 6. Putting the
your life. Your philosophy is your belief Somebody or something is keeping cart before the horse.
system. If you are not successful, simply you down. “If I were rich, then I would give.”
change your philosophy. It’s really that 2. Believing in luck. 7. Ignoring the inßuence of others.
simple. The “It’s not what you know, it’s “Who you associate with is how you
who you know” excuse. Having the and others value you.”
Success is based upon your philosophy. attitude that most people who have 8. Education stops at high school.
Have you ever heard this quote? “Watch money or success inherited it or knew Read is the root of ready. Education
your thoughts; they become your the right people. is a never-ending process. What you
words. Watch your words; they become 3. Creating false put into your mind always effects your
your actions. Watch your actions; they milestones and barriers. life.
become your habits. Watch your habits; Example: “When ____ happens, then 9. Perception of work.
they become your character. Watch your I will do _____.” or “I have to have Most people believe their work is what
character; it becomes your legacy.” _____ to get _____.” they have to do, so they can be able to
do what they want to do. “Make your
vocation, your vacation”
10. Practicing needs
vs. wants gratiÞcation.
Your life is your choice. If you don’t
like it, design a course to change it.
You are always more successful living
from choice and desire than from
The Architects dedicated to serving the needs of automobile dealers. needs. You can spend your whole
life trying to meet needs that are
simply bad choices rather than living
a successful life of choice.
11. Negative associations to money.
“ David Sova of Car Store Design brought To make a lot of money, you have to
a huge wealth of overall dealership design be greedy or work all the time. Or,
knowledge as well as many practical you believe you are not worthy or that
suggestions that will save us thousands people with money are different.
of dollars short and long term. David was
definitely a great investment for us.” Your philosophy is your choice. What your
mind focuses on is what you move toward.
Richard Burton, Dealer The most incredible thing you have as a
Bedford Ford Lincoln Mercury human being is free will to choose your
Bedford, IN philosophy. Your philosophy always
precedes any system or series of choices
that produce failure or success.
Seattle, WA w Chapel Hill, NC w Ft. Lauderdale, FL
To learn more call us toll free at 866.873.0039
email us: information@carstoredesign.com,
or visit our web site: www. ca r storede sig n.com. Mark Tewart is the President of Tewart
Enterprises. He can be contacted
at 866.429.6844, or by email at
mtewart@autosuccess.biz.
12 www.autosuccess.biz

13. f&i solution
Frank Martin
By Frank Martin
Implement Your
Own Menu Presentation
Every dealership benefits. Your first box will also include agree that the vehicle that still has 40,000
should be aware the payment. miles of full comprehensive warranty will
that there is a be worth any warranty at all. What I’m
liability risk for not For example: trying to say Mr/Ms Customer is that not
offering everyone “Mr/Ms Customer, your warranty will only will this service agreement avoid the
the same ‘protection give you three years or 36,000 miles high costs of repair work, it will enhance
package’ for their vehicle. To avoid this of comprehensive coverage, however, the value of the investment you’ve made on
document each transaction with each because your driving considerably more your new vehicle.”
customer, and make sure their choices are each year than your coverage allows,
initialed by them so you have something the manufacturer has made provisions to
to reference in the event they return with protect your investment tailored to your continued on page 29
complaints. driving needs. In your situation, you can
add an additional two years and 64,000
The best tool for accomplishing this miles of full comprehensive coverage.”
preventive measure happens to be the best While you are talking write 6/100,000 as
tool for presenting all of the dealership’s part of option one. Go on to give some of
products to all customers, all of the time, the benefits. “This coverage not only pays
it’s called menu selling. for any repairs, but it will also pay for
labor, a car to drive while your vehicle is
Many dealer service companies offer in the shop and, if needed, a tow truck to
menus to their dealers, the same get it there. If you happen to be 100 miles
companies that provide the dealership with or more out of town during a breakdown,
the mechanical breakdown insurance, life, it will also give you an allowance for
disability, gap, etc. meals, hotels and/or incidentals up to
$100 per day.” You may also want to
With a menu, you can offer everything add, “Your warranty will also provide
your dealership sells, explain all the you with roadside assistance. That means
features and benefits to the customer, and if you have a flat tire, run out of gas, lock
give them the choice to choose which your keys in your car or, for any other
benefit is best for them. It can be a very reason, you find yourself stranded, you
helpful tool in step selling the customer can call a number seven days a week,
from one option to another, and it’s 24 hours a day, and someone will make
also very non-confrontational. Once the sure that you’re back on the road safely.
customer initials the option they settle on, Another really nice feature is that you can
your whole presentation is documented. transfer your warranty to someone else,
With this enclosed in the deal, you will should you decide to sell your car before
never have to worry if all options were it expires.”
offered.
Now, go to the back page and draw a
If your company has not already invested diagram of two rectangles to represent
in a menu software program, then make cars, with a line in the middle to separate
your own. them. “Mr/Ms Customer, let’s say you had
to go 60,000 miles on your vehicle (write
First, take a regular 81/2 x 11 sheet of plain 60K on top left of the rectangle). Under
white paper. Fold the paper in half, twice, so present circumstances, this would leave
you have a book that resembles a greeting you with no warranty.” Now, write a 0
card. On the front, draw one vertical line at the bottom of the left example. “With
down the middle and two horizontal lines your additional coverage, you could have
to make six squares. Each of these squares 60,000 miles on your vehicle (write 60K
will have an option that you will offer to at the top of the right example) and still
your customer. Before starting, ask all the have 40,000 miles of full comprehensive
pertinent questions to determine the terms coverage that you can transfer over to
of what you’re going to sell, like how many your prospective buyer.” Put 40K at
miles do you drive, are you married, do you the bottom of the right example. “Your
have children, etc. vehicle is going to depreciate with or
without a warranty.” Draw a line through
In the first box, list all your products in the left example from top past the bottom
order of most importance (highest gross with an arrow at the end, and draw a line
potential), this is the box that you feature half way through the right example with
all of your products and explain the an arrow at the end. “I think that you’ll
october 2003 13

14. sales and training solution
Joe Verde
By Joe Verde
Leadership vs. Management
What makes a sales To make it even tougher to be really couldn’t create the systems and processes
manager really effective, when you add ‘sales’ and lacked the personal selling skills
effective in this management to this mix, you now require required to be able set the example to pull
business? this leader/manager to have the additional off their vision.
skills of a professional sales person. Why?
The answer is complicated, because there Without those skills, this leader/manager As a manager of the sales department,
is so much involved in being a good sales can’t control, can’t train and certainly can’t you’ve been given the most important, yet
manager (leader). And to clear the air, be out front setting the selling example. most complex position in your dealership.
when referring to sales managers, it’s The lists under sales and management are And your success or lack of success in this
every manager in the sales department … what you hire each group to do. The list position determines the overall success or
DLR, GM, GSM, SM, NCM, UCM, ASM, under leadership is the additional skills/ lack of success in your dealership.
etc., because each one has the on-going traits that a manager must also have to pull
responsibility to help manage and lead the off management responsibilities. Many sales people are poorly trained in
sales team to more success, every month.
Sales Management Leadership
This is leadership and management
simplified: Follow the basics Establish selling procedures Develop a vision
Close the sale Recruit and hire Take the lead
You ‘lead’ people. Handle objectives Train effectively Set the example
You ‘manage’ things. Follow-up Track and monitor Reward the team
Prospect Motivate the team Quickly adapt and adjust
There are many great leaders or people Handle the phones Set the goals Make critical decisions
with potential in this business, and there Require people’s best
Negotiate (or set up) Lead the team
are many great managers or those with
potential to become great managers, too.
The problem is finding someone who Work the list from right to left to see a 95 percent of dealerships. If there could
can combine both the talents to become clear picture – we’ll use follow-up, as an be something worse than not training the
a great leader and a great manager at example here. sales force, it would be that the people
the same time. Why is that so difficult? who’ve been put in charge of those sales
Here are a couple synonyms for lead(er) 1. (Lead) A leader develops the people have had even less training in how
and manag(er). Think about them for a ‘vision’ to increase sales, gross and to manage and how to lead their selling
second, and then we’ll talk about sales CSI by building a solid customer base team and the dealership to more success.
management. of repeat business.
2. (Manage) As a manager, he/she then Every manager in your dealership
Lead Manage must develop the ‘procedures’ to make who is involved in sales has to learn
sure each customer is ‘sold’ correctly how to ‘sell’, they have to learn how
Be First Control and ‘followed up’ effectively, so they to ‘manage’, and they have to become
Guide Succeed can build that customer base. Then ‘leaders’ if you’re to have any real
they must ‘track’ the sales people’s chance of competing effectively. You can
Another catch is, you have to become activities to make sure the process is succeed and grow every year in sales, and
good at both leadership and management followed. you’ll make it happen by developing both
before you can be good at either one of 3. (Sales) And then, to be able to your management and leadership skills
them. Anyone can ‘be first’ (leadership), ‘train’ the sales force effectively, and qualities.
but you have to be in ‘control’ they’ll have to have a high personal
(management) or being out front doesn’t skill level in follow-up, prospecting,
matter. That’s one of the challenges now; using the telephone effectively and
there are a lot of people in management the organizational skills to show sales
who are out front doing their best to be people how to set up their follow-up/
a good leader, but they’re ineffective in prospecting systems.
management (processes/training/control),
and they never have enough of a positive A lot of great sales people have been
impact on unit production, gross profits, promoted to management and failed
CSI or of building a solid customer base miserably – we’ve all seen it happen. Joe Verde is the President of The Joe
for your dealership. And the reverse A lot of great process managers have Verde Group. He can be contacted
of that is, great process managers who failed to get any production from their at 866.429.6689, or by email at
messed up everything, too, with their sales team, too. And many a great leader jverde@autosuccess.biz, or visit
poor leadership skills. has gone down in flames, because they www.joeverde.com.
14 www.autosuccess.biz

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16. feature solution
Kevin Kevin Smith
By Smith
Customer Retention:
A Profit Opportunity
Customer attrition is one of the biggest per month, you would write 1,200 repair most sales people do selling your dealership?
expenses in your dealership on an annual orders monthly. This equates roughly to 15 What tools do you give your sales team to
basis. It is estimated that you loose 25 - 25 percent ongoing service retention and brand your service department?
percent of your total customer base annually will provide you a gauge to measure your
due to customer attrition. This represents dealership regarding customer retention. At time of delivery, the customer is issued
over two million dollars annually in lost a dealer customized gift card. The sales
opportunity cost for the average dealer. In order to improve your customer retention, person enters the customer information into
you must first evaluate where 80 percent of a customized web site.
On a daily basis, you identify the biggest your customers are having their service
opportunities and challenges within your work done. Are you losing their business They simply enter the account number on
business. You quantify nearly every major to other franchise dealers, because they are the back of the card, name, address, phone
expense and profit opportunity on your closer or more convenient? number etc. (approximately a one minute
financial statement. You measure it, develop process). The information is housed at a
a plan, monitor your plan and adjust your Over 75 percent of all service work done credit card-like dual redundancy server
plan based on the data you receive. in the US is performed by independent where it retains the data. The data is
quick lubes and tire stores. The perceived then transmitted to a dealer specific web
What plan do you have in place to attack price and convenience lures them in and location.
your biggest expense and opportunity cost? then they develop the habit of returning
How do you measure and quantify its continually. Human nature says people The card has a magnetic strip that is encoded
effectiveness? would rather continue to do business at the with customer benefits and a total card value.
same establishment. They eat at the same Each time the customer comes in, they give
Heightened awareness regarding customer restaurants, shop as the same stores and the card to the cashier. The cashier swipes
retention is prevalent. It can be 10 times as have their hair cut at the same place. the card in a dedicated credit card machine,
expensive to solicit a new customer, as it is which is attached to both the Internet and
to retain a current customer. But how do you But what else drives customer habits? the server.
functionally facilitate improving customer The airlines, banks, grocery stores have it
retention within your dealership? figured out, rewards programs. The more The terminal prints a receipt that shows
you utilize these businesses the more points, the amount of the discount, as well as how
The answer is, the service department. dollars, merchandize etc. you will receive. much the customer has accumulated toward
If you question the premise, look no further their next vehicle purchase. The receipt is
The customer is 17 times more likely than the wallet or key chains of your next stapled to the repair order, and it is treated
to repurchase from your dealership if ten customers. Once more, look in your like any other coupon. This feels like real
they use your service department on an own wallet or your spouse’s wallet or key cash to the consumer, like an actual credit
ongoing basis throughout their ownership chain. Look for your airline card, Costco or card transaction.
experience. Now, think about your current Sam’s card, Blockbuster, Safeway or your
repeat customers, nearly every one comes local grocery store, etc. Each transaction is recorded in the system,
from your service drive. and the data is available by an 800 number
Loyalty rewards programs are designed to or via the Internet to the consumer. They
Let’s look at the average dealership. The transition your customers from your sales can check, at any time, to see how much
challenge is that they only transition 15 department into your service department they have utilized or how much they have
- 25 percent of customers from the sales and back to your sales department. They accumulated toward their next purchase.
department into the service department increase sales, increase front- and back- end
and retain them on an ongoing basis. Your gross, stop people from shopping and, most Your management team can run numerous
dealership numbers may be slightly higher importantly, brand your dealership as a ‘cut tracking and sorting reports to target
or lower than average. above’ the rest of the stores in your market. market customers. For example, if
you wanted to run a report of all of the
As a general rule, you will write six times the Think about your sales people, they usually customers who purchased a vehicle four to
number of repair orders as you sell vehicles do a good job selling themselves. Most do six months ago but who had not returned
monthly. Therefore, if you sell 200 cars a good job selling the vehicle. How well do for service, you can pull that report then
16 www.autosuccess.biz

17. feature solution
Example of possible beneÞts
target market the customer.
BeneÞt Discount Amount Dollars toward
Dealer rewards programs increase front- next purchase
end volume and gross profit. If you are 1st oil change N/C $29.95 $29.95
giving the customer $2,000 in perceived
cash to use at your dealership, do you have Every other oil change N/C $449.50 $449.25
to beat the dealers deal down the street by (Must perform all recommended factory maintenance at dealership.)
$100? Dealers utilizing dealership rewards
(15x $29.95)
programs have seen a seven to ten percent
increase in their total sales volume. Dealers Every other 72 point $449.50 $449.50
have also benefited from a $143 increase per inspection N/C
car increase in front-end gross profit. (Must perform all recommended factory maintenance at dealership.)
How does a simple credit card tie them into (15x $29.95)
your service department? It doesn’t, the card Every other tire rotation N/C $127.60 $127.60
simply records and quantifies the data, and
serves as a constant marketing reminder (8x $15.95)
each time the customer opens their wallet. $200 off service contract $200 $200
purchases
You must take credit for what you are Car washes $243.55 $243.55
already giving to the customer. Oil changes,
shuttle services, car washes etc. Quantify 10 percent off all other service $500 $500
the free or discounted services you provide Total card value: $2,000 $2,000
to the customer and take credit for them,
build value, brand your dealership and your
service department. gift card to use, would you shop at the customer base is having their service done.
store that the gift certificate was from or its Take a page from the quick lube and tire
Do what the tire stores and quick lubes competitor. stores and offer the customer competitive
do, get competitive on low cost repetitive prices on low end, repetitive maintenance
service items, and make coming to your What is the result on your service items.
dealership a habit for your customers. department? Dealers utilizing rewards
programs have experienced as much as a Then quantify the savings you’re giving
Make doing business at your service 15-25 percent increase in hours per repair them to increase front-end gross profit and
department like returning for other periodic order. When you develop and ongoing and sales volume.
business transactions. Like going to the repetitive relationship with the customer, up
same restaurant, bank, dry cleaners, airline sell is easy. Customers are conditioned for rewards
or grocery store and then use the card to programs. The more they use at your
track it, and let the customer earn dollars for Dealers utilizing rewards programs have dealership, the more they will earn toward
their future purchases. experienced a 15-25 percent increase in their next purchase at your dealership.
total repair orders over a two-year period.
Here is an example of how dealers Then track how much they are utilizing
accomplish this: What’s the bottom line? A 15-25 percent the card, and target market your customer
increase in hours per repair order and a accordingly.
These are only an example card discounts 15-25 percent increase in total repair orders
and packages vary from dealer to dealer will mean over $200,000 to you annually in
with as little as $500 packages up to $3,000 bottom line net profit, as the average dealer. Kevin Smith is Chief Operating OfÞcer
packages. at the Ensurety Group, Inc. He can be
As new car franchise dealers, it’s time to contacted at 888.886.9394, or by email
The premise is simple, if you had a $2,000 pay attention to where 80 percent of your at ksmith@autosuccess.biz.
october 2003 17

18. marketing solution
Dennis McDonough
By Dennis McDonough
Sales From the Internet:
How to Limit Spam
The Internet has Many spammers use spider programs to will return a list of pages that need to be
great tools for crawl the web and gather email addresses modified.
finding information off of websites. Including an email address
about your on your website is important. People will Don’t use the mailto: hyperlink tag. Instead
customers, vendors want to contact you. Special formatting provide a contact form that your customer
and the competition. can turn a generic text email address into can complete, that is sent via email from the
There are applications like email and instant an active hyperlink. By using this format a web server to you.
messengers that allow you to quickly customer can click on your email link and
communicate. There are a lot of benefits, automatically open up their email program. Use a graphic image instead of text to
but with the good also comes the bad: display your email address on your website.
SPAM. While email addresses are a neccessity on
every website, this mailto: link can be used Check the meta-tag within the code of your
Spam is defined as flooding the Internet against you. The spider engine can pick up website. Meta-tags are hidden words used to
with multiple copies of the same message, an email address that is included in the text describe your website, allowing your site to
in an attempt to force the message to people content, and your email address will find its be indexed by search engines. If any email
who would not otherwise choose to receive way on to countless mailing list which are addresses are listed within the meta-tags,
it. Most spam is junk advertising. then used by spammers. remove them.
Spam is often for dubious products, get- Here is how to stop the spiders from picking These steps should help curb your unwanted
rich-quick schemes, quasi-legal services up your email address: spam emails that take up your time.
and some are just hoaxes. Spam is easy to
create, and it costs the sender very little to A good place to start is to test to see what Dennis McDonough is a Consultant for
send, most of the costs are paid for by the pages you need to change. Google.com eCarLots.com. He can be contacted at
recipient or the carriers rather than by the is a text-reading spider, like spammers 877.354.1998, ext 202, or by email at
sender. Some spam is targeted for individual use to gather email addresses. Search for dmcdonough@autosuccess.biz, or visit
users with direct email messages. the complete email address and Google www.eCarLots.com.
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18 www.autosuccess.biz