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. “You now have a world-class grip.” pg.22
.biz
September 2003
Sarah Gauss
Maximizing Profits
on Every Deal
Profit From Your Architecture
With a Customer Friendly Lot
The Three
Currencies of Success
Practical Ways
to Increase Sales
Your Feelings-Journal:
A Master Tool
Improve Your Closing Ratio

3. manager
I N S I D E
driventeam operation
uccessrevenue automobil
4 A Model for Sales Success
solutions
Tony Ray Munson
5 Practical Ways to Increase Sales Timothy Gilbert
6 Motivating Your Sales Team Bob Bullock
profitprofessional
7 Your Feelings-Journal: A Master Tool Leo Weidner
8 The New Guy: Experience and Results Steve Hiatt
9 Profit From Your Architecture
sales
With a Customer Friendly Lot Jeff Margaretten
10 Improve Your Closing Ratio David Thomas
12 Five Principles of Effective Advertising Rob Mudd
13 Maximize Your Menu Presentation George Jackson
14 Wholesale Auto Auction Basics: Do It Right Don Elliott
15 Sales From the Internet: Protect Your Computers Dennis McDonough
16 Maximizing Profits on Every Deal Sarah Gauss
18 The Three Currencies of Success Mark Tewart
20 Managers Evaluation: Successful Leadership, Part 2 Joe Verde
22 Get a Grip and Save Your Swing Brian Manzella
23 Profit Starts With the Selling Process Terry L. Isaac
24 Secure and Maintain Bernard Boule
26 The Role of a Leader Brian Tracy
28 Yellow Pages: The Search for Automobile Related Headings Stephanie Hobbs
29 Three Tips for Using Innovation in Your Organization James Feldman
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
inventory
Patrick Luck, Editor & Publisher
Success Driven Solutions
• pat@autosuccess.biz
Susan Goodman, VP of Operations
• susan@autosuccess.biz
756 South 1st Street, Suite 202 Lindsay Porter, Copy Editor
Louisville, Kentucky 40202 • lindsay@autosuccess.biz
Amy Stuber, Advertising Services Mgr.
Toll Free: 877.818.6620 • amy@autosuccess.biz
Facsimile: 502.588.3170
In God We Trust
dealer
Thomas Williams, Creative Director
Web: autosuccess.biz • 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
info@autosuccess.biz. Subscription rate is $75 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible 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
expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. 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. Reproduction in whole or part is prohibited without express written consent 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 877.818.6620. Printed in the USA.
Postmaster: Send address changes to AutoSuccess Magazine, 756 South First Street, Suite 202, Louisville, Kentucky 40202.

4. sales and training solution
Tony Ray Munson
By Tony Ray Munson
A Model for Sales Success
An interview with persistence and attitude and finally said for things I buy or take care of for my
superstar sales I could start the next day. I said if I was customers. I also send them cards and
person, David going to beat the top guy, I better start letters every 45 days, and I do my own
Sanchez at Perry today, and that’s what I did.” advertising.”
Ford - Lincoln -
Mercury: Munson: “How did you do?” Munson: “Do you use a follow-up
system?”
Sanchez: “I sold 17 cars in that partial
Munson: “How long have you been month and was the top sales person. I Sanchez: “Absolutely, I have for years.”
selling automobiles?” made good money and have done well
ever since.” Munson: “Do you take ups?”
Sanchez: “Twenty-four years now.”
Munson: “How did you get started?” Munson: “How many cars do you Sanchez: “Not many at all. Most of my
average a month?” business is from repeats and referrals. I
Sanchez: “My dad wholesaled cars in only work about four days a week and
Mexico, and I started helping him. I was Sanchez: “Around 27, I have sold up to usually play golf four times a week. I
always selling and trading things, so after 48.” have a customer base I follow, I prospect
I moved to California, I thought I should Munson: “How much are you making a and I advertise.”
sell cars and help out the Hispanic people year?”
in the area. I went to a local Ford store Munson: “What type of prospecting do
and kept asking for a job. One day, I was Sanchez: “About $220,000 or so. I also you do?”
in the owner’s office, and I looked on the spend a little to make a lot.” Sanchez: “I make some cold calls and
board at the top sales persons name. I told then whenever I meet someone new, I talk
the owner that if I didn’t out sell his top Munson: “What do you spend money on?”
to them about their vehicle and possible
sales person that month that he did not Sanchez: “My customers. I usually have business down the road.”
have to pay me. The owner liked my a service bill around $1,500 per month
Munson: “That’s a different approach
than most sales people are using, you’re
working smarter, not harder.”
Sanchez: “Exactly, plus I have saved
money and invested it, so I don’t feel that
I come across as though I need ‘this sale’
The Architects dedicated to serving the needs of automobile dealers.
to pay rent. I have seen too many sales
people through the years blowing their
money and living check to check.”
Munson: “You could be a great role
model for a lot of sales people out there.”
“ We had the pleasure of working with Win Sanchez: “I enjoy what I do, I work it
Hoffman from Car Store Design to create a new my way, and it has been very successful
layout for our Service Department and Customer for me.”
Waiting Area. What an unbelievable difference
it is going to make!! His creativity and attention Munson: “Why aren’t you a manager?”
to detail certainly made the transition easy.“
Sanchez: “I have been offered, but I
Mark Pellegrino, Dealer don’t want that job at all. I just like doing
Pellegrino Chevrolet my own thing.”
Westville, NJ
Munson: “Even though you say you only
work four days a week, it sounds as if
you are working and prospecting all the
time?”
Car Store Design is a full-service Design + Architecture practice Sanchez: “Actually yes, all the time. I
based in Seattle WA, Chapel Hill NC and Ft. Lauderdale FL. have fun with it; everyone is a prospect.”
To learn more call David Sova at 866.873.0039, email us at
information@carstoredesign.com, or visit our web site,
www. ca r storede sig n.com. Tony Ray Munson is the President of
Sales Systems International, Inc. He
can be contacted at 866.265.6575, or
by email at tmunson@autosuccess.biz.
4 autosuccess.biz

5. sales and training solution
TimothyTimothy Gilbert
By Gilbert
Practical Ways to Increase Sales
To increase sales vehicle, the more work may be needed. Another suggestion for increasing turns
in your service Older model vehicles represent the single is to have a daily schedule for every
department a greatest sales opportunity for service vehicle on the lot. Have an advertising
service writer can work that exists today. Help customers plan for vehicles based on how long
add an additional keep their car in good mechanical they have been on the lot, stepping up
hour of billable condition. It is good for them, and it is the advertising as the vehicles age. Have
time to each customer pay repair order. good for you. Look at older vehicles a display plan as to where to put new
The easiest way is to make better use as opportunities. In this regard, do not vehicles and where to move them to give
of the service menu. The concept of a overlook trim opportunities. More wear them maximum exposure as they age.
service menu is to show the customer and tear is inevitable as a vehicle ages.
how competitive the shop is and to Molding, seats, floor mats, door panels Ask the sales people about each vehicle
remind the customer of things they may can oxidize, wear down, lose their color in sales meetings, “Why haven’t we
need to have repaired; the basic services or get rips or tears in them. Keeping them sold stock number 12345? Is there a
are: tire rotation, alignment, tune up, oil in good condition adds resale value to an problem with that vehicle we need to
change, etc. Use this opportunity to show older vehicle. know about?” They will tell you what
the customer other options. customers have said or thought about that
Another way to increase labor sales is vehicle. If there is a problem fix it and
One approach is the service pyramid. to keep good service history records on then push the vehicle in your advertising.
It creates a menu that lists, by mileage, each vehicle. The more you know about
suggested service work. For example, at a given vehicle, the more you can help Another way to increase inventory turn
15,000 miles, the service pyramid suggests keep that vehicle in good mechanical is to make sure that titles have been
an oil change and alignment. At 30,000 condition. properly and expediently transferred over
miles, add a minor maintenance package, to the dealership. Even after a vehicle has
which includes a transmission fluid check, One good suggestion per repair order can been sold the deal cannot be closed out
belts, etc. At 50,000, recommend the add volume to the shop and profit to the until the title work has been completed.
normal scheduled maintenance work plus dealership. The car may be gone, but the inventory
tires. At 60,000 miles, recommend all of has not changed, because the deal has not
the above (if the customer has not had the In your used vehicle operation, the been closed out. This can add days to the
regular factory suggested maintenance objective is to turn inventory just a little length of time a vehicle stays in-house.
done) plus a timing belt replacement. At faster to achieve a better gross profit on
75,000, add brakes. The purpose of the each unit sold. The first and easiest way Next month, we will talk about how
service pyramid is to make it easier for to increase used vehicle inventory turn every sales person can sell just one more
service writers to suggest additional work. by one day is to get each vehicle on the vehicle each and every month, for new
lot one day sooner. The more organized and used sales departments. The motto
All of this can be adjusted for each the department is on handling trades, the of every sales person should be, ‘one at a
specific shop based on their vehicle more money it can make. The clock starts time and then one more’.
histories. Certain makes and models ticking as soon as the customer hands
have unique repair histories that each over the keys to their trade-in. It can take
shop should take into account. Have each anywhere from three days to a week to Timothy Gilbert is an Associate
service writer think of additional repair get a vehicle ready for retail. If the used Professor and Chairman of the
work that can be added at each interval. car manager can set as a target getting Automotive Marketing Department at
Set it up as a contest, and reward them. every vehicle to be retailed on the lot Northwood University Florida Campus.
within two days of receipt, it will reduce He can be contacted at 866.274.3792,
Try these two additional inventory turn time by at least one day. or by email at tgilbert@autosuccess.biz.
recommendations. First, try using a
free (or nominal) vehicle inspection,
particularly after a vehicle has exceeded
its warranty period. A quick 15, 20 or
25-point inspection can offer a number of
valid opportunities for repair work. For
instance, a quick look under the vehicle
might reveal an exhaust pipe leak, or
a hose leak, or possibly a suspension
problem. Alerting the customer to
a potential or existing problem is a
valuable service. Even if the inspection
indicates that everything is okay, it lets
the customer know you care, and you are
more interested in their safety.
The second point is that the older the
september 2003 5

6. sales and training solution
BobByBullock
Bob Bullock
Motivating Your Sales Team
All sales teams of normal compensation, an entitlement an NFL game will get your sales force
need to be that is due the employee regardless of moving. Graduate the reward program,
motivated. performance. Once this pattern of reward and you’ll get even better promotional
Methods of is established, it becomes difficult to value.
motivation vary. change or terminate.
There are other Travel incentives
options to motivating your sales team Travel incentives have trophy value. yield better performance at a lower cost.
other than cash rewards. Cash is not You can’t mount cash; you can’t show You can’t buy performance nearly as well
necessarily king. When a customer it off; you can’t photograph it. Cash as you can motivate it. Dedicate three to
purchases a car, price is only one of the has only a temporary association with five percent of yearly compensation to
factors that are incorporated into that the reward. You can’t brag about cash, travel incentives and yield the same gains
decision. A sales person’s motivation but you can brag about an all-inclusive that 15 percent of compensation in cash
also includes multiple factors. sports vacation. The photos will tell the rewards would produce. This amounts
story. to a three-fold decrease in spending to
Assume that you have addressed the achieve the same results.
immediate needs of your employees, a Travel incentives
competitive salary, good commission provide personal fulÞllment. An additional thought to consider when
structure, benefits and a healthy working Travel incentives offer guilt-free creating an employee incentive program:
environment. If your employees are enjoyment of a reward and can be shared create senior/junior partnerships within
fairly compensated, you are freed up with dependants. Cash is typically the company, pairing or grouping
to target their ‘psychic income’ and expended on short-term needs or is laden senior employees with more junior
encourage improved performance. with questions, “How should I spend employees. By linking seasoned and
it?” junior employees under the banner of an
Psychic income was defined as a person’s incentive program, the competitive and
desire for status, fame, glory, recognition Travel incentives independent approach of a sales team
and attention by psychologist Abraham have promotional appeal. can be focused to bring more junior sales
Maslow. Awards like travel and A travel incentive has greater perceived people up the curve.
merchandise tap the psychic income of value than cash. A tropical vacation
employees. Cash does not. for two that includes airfare, a luxury
Caribbean or Alaskan Cruise with
Reasons why travel incentives beat cash exotic ports of call, chilled champagne
as a motivational tool: in the cabin, plus four star dining,
has significantly more appeal than an Bob Bullock is the Sales Manager
Travel incentives equivalent amount of cash. A sports at The Odenza Group. He can be
have great motivational power. vacation for two that includes airfare, contacted at 866.873.0026, ext. 225, or
Cash is almost always viewed as a part hotel and two lower level tickets to by email at bbullock@autosuccess.biz.
HOW TO EASILY SELL MORE VEHICLES
FOR MORE GROSS PROFIT THIS MONTH!
Tewart Enterprises Inc. offers the most advanced, results oriented, college-
level, custom training available today. We GUARANTEE an increase in sales and
gross profit or your money will be refunded!
WE OFFER THE FOLLOWING TRAINING:
FREE Newsletter! Management Phone Skills
Go to www.tewart.com Basic Sales Negotiating/Closing/Desking
& click on newsletter. Advanced Sales Customer Service
For FREE Consultation:
866.429.6844
or 513.932.9526
6 autosuccess.biz

7. leadership solution
Leo Weidner
By Leo Weidner
Your Feelings-Journal:
A Master Tool
What if one General. Be completely open,
simple tool could What am I feeling today? Why? honest and unrestricted.
substantially What is important in my life? Why? Write whatever you are feeling—
increase your What area in my life needs more positive or negative. Be totally honest
sales and profits, attention? Why? and unrestricted. Don’t worry about
reduce your stress What am I most excited about? Why? spelling, grammar or sentence structure;
and improve relationships with family, just let it flow.
colleagues and customers? There is such Family.
a tool, the feelings-journal. This is a How has _________ (name of spouse) For your eyes only.
powerful tool thousands of professionals blessed my life? If you have the slightest suspicion that
have used to substantially increase their What are _________’s (name of spouse) someone could somehow get hold of
income and overall success. strengths? your journal and read it, your brain-
What areas of concern, complaints or mind will not allow you to write it in a
Many people have a hard time getting in disappointments do I have? completely uncensored manner. When
touch with and expressing their deepest How have each of my children blessed you write negative feelings about people,
emotions. If you’re struggling with the my life? (List each child separately.) places or things, destroy the record so no
concept of writing your feelings, keep What are each of their strengths? one sees it again, not even you.
in mind that from a brain science and Are there any areas of concern I should
personal performance standpoint, it is focus on? Why? Develop your skills over time.
one of the most powerful activities you Feelings-journaling does not come easily
can engage in. Writing in your feelings- Profession. or naturally to most people—especially
journal will reward you with four What am I working toward in my men. But with practice and time, you’ll
primary benefits: career? Why? become progressively more comfortable
What am I most concerned about today and skilled at it. Be patient, start out
1. Crystallize your thoughts. or this week? Why? slow, only five to ten minutes a day, and
Work through problems, prepare for How can I improve or take advantage of build up from there.
important meetings, discover solutions, opportunities?
expand on ideas, gear up for an important Same place/same time.
sales pitch—all in advance. Physical health. Set a regular time (preferably first thing
How do I feel physically? What can I do in the morning) and a quiet, private
2. Cathartic. to improve? Why do I want to? place where you can ponder, think and
Write out worries, negative thoughts and How’s my diet? What can I do to record whatever is on your mind.
emotions. With this baggage cleared out, improve it? What will this do for me?
your health, success, attitudes, energy Make an appointment.
and relationships substantially improve. Spiritual. Feelings-journaling is an appointment
How is my relationship with God? with the most important person in your
3. Communication. What can I do to improve it? life, you. If you ‘try to find the time’;
In selling, being able to share feelings How will this help me? you’ll likely never do it. Make this
and show empathy for customers is a Is there a recent, or not so recent, appointment a maximum priority. The
huge advantage. Those who master this spiritual experience I should record? remarkable benefits in every aspect of
talent become top producers. Feelings- your personal, family and business life
journaling allows you to practice and Social. will amaze you.
develop these skills. How can I improve my interaction with
people? Leo Weidner is the Chairman of
4. Inspiration. Do I have personality traits that are LifeBalance Institute. He can be
Feelings-journaling opens up extensive negatively impacting my effectiveness contacted at 866.429.6826, or by email
neural pathways to the right side of with customers or colleagues? at lweidner@autosuccess.biz, or visit
your brain significantly increasing your How can I change these? www.lifebal.us.
creativity, insight and intuition, making
you more successful in your personal This is just a sample checklist. Make
and business life. your own list according to what’s going
on in your life. If you’re trying to work
Feelings-journal checklist. out how to pitch a new car or product,
Feelings-journaling is a learned skill. how to improve profits, how to deal with
In the beginning, many people can’t a partner or employee, put it on your
think of anything to write. Develop a checklist, and you’ll be amazed at the
feelings-journal checklist. Reviewing solutions that come to you. Obviously,
this list will ignite feelings and start you you don’t write about every item on “We get results
writing. Make a list of the things in your
life you are most concerned about, most
the checklist at once. Use the checklist or you don’t pay!”
to stimulate your feelings and help you
desirous to achieve or most grateful for. start writing. 877.209.0562
Your checklist could look something www.DealerDirectMedia.com
like this: Remember five simple principles:
september 2003 7

8. sales and training solution
SteveSteve Hiatt
By Hiatt
The New Guy:
Experience and Results
In the last two higher sales levels. As is often the case, multiple streams of leads with Jason to
issues we have he needs help in some selling skills and ensure success.
covered the attitudes. In skills, we must help him
interviewing, isolate objections and then close until The areas of prospecting and follow-
hiring and training his tongue bleeds. The attitude area is up are important for both sales people.
of two ‘New Guys’ only in realizing that the chance to make After all, a warm prospect is easier to
at my dealership. Some of you have the sale is right now and that customers close. Since Bryan, needs to improve his
even called to talk to them, thanks for need that gentle nudge to make the closing techniques, wouldn’t it be easier
the support. decision immediately. to practice on warm prospects?
At this point, we have had two full The second new guy, Jason, has been Some of the niches for the New Guys are
months of selling time to evaluate steadily improving. His objection to introduce themselves to local banks
both sales people. Their results are our handling skills are improving rapidly, and credit unions so that the loan officers
number one indicator of success. To date, and he attempts a close even if it doesn’t will send them the leads on people who
the first New Guy is in single digits, and seem like the perfect time, and his are getting pre-approved. They are also
the second New Guy is already in the results are very good. We really need to going to work with tow companies and
high teens. With this in mind, we made a help develop his client base by coaching body shops for other leads. Often a
few changes to our approach. him in prospecting and follow-up. The tow truck driver or body shop knows
majority of his current sales are from when someone needs their car or truck
The first new guy, Bryan, has been walk-in traffic, and if it starts to die, so replaced the soonest, because they are at
transferred to one of our used vehicle will his sales. Most dealerships would the scene, or the car is towed to their lot.
stores, for several reasons. The single let someone like this ‘just be left alone’.
most important reason is because The difficulty with that approach is, it Prospecting that has worked best for us
the staff to manager ratio there is the won’t prevent slumps. And, too many is going out and seeing the people they
smallest. We feel he can get more one slumps create turnover. Since turnover have already sold at their workplace.
on one time there to help direct him to means start over, we need to create Who doesn’t like to talk cars? Especially
when they are getting paid to do it.
Customers actually seem very receptive
to this.
Continued role-playing for both of the
Log 200-500% more opportunities! New Guys is high on the list. Sharpening
skills in an environment where there is
coaching, and there isn’t a sale at risk,
Leader in Showroom Traffic, takes the pressure off and increases the
Lead Management, odds of being successful in the next live
and CRM Software situation.
Track all outgoing real-time showroom & desking control I hope these three articles have given
phone activity you a way to compare your process and
internet lead tracking system results against ours. As a dealership, you
can screen, lead, guide, motivate, recruit,
2-way active DMS integration hire and role-play until you are blue in
complete in-store training
the face, and in the end, the individual
Minimize data entry
you hire has to take the ball and run with
with license scanner drivers license scan, worksheets it. Some sales people have that killer
instinct or edge that allows them to read
& credit bureaus people and know right when to close,
with the tenacity to continue when the
odds are against them. Look for these
track more traits, and encourage them whenever
you see them. Recap what they do right,
The Higher Gear Group, Inc. and focus on those skills.
bring back Hoffman Estates, IL 60195
more tel 866.873.0029
fax 847.310.3196
sales@highergear.com
close www.highergear.com
Steve Hiatt is the General Sales
Manager of Hiatt Pontiac GMC, Hiatt
more call for a FREE consultation and demonstration
Outlet and Hiatt of Auburn. He can be
contacted at 866.265.5616, or by email
at shiatt@autosuccess.biz.
8 autosuccess.biz

9. marketing solution
Jeff Margaretten
By Jeff Margaretten
Profit From Your Architecture
With a Customer Friendly Lot
“What can I do to Let the cars do the talking. look for help. Then, have someone there
spruce up my lot, From a buying perspective, the customer immediately to answer their questions.
make it more fun has already decided to visit your
to walk around?” dealership to buy a car or at least shop Flanders and Patch Ford, winner of
In July, we for one. The vehicle is their goal. The a 2000 Ford Boston Region Golden
discussed the short loop, now let’s talk sales person is someone who can assist Shovel Award, is a perfect example of
about what can be done now that we’ve them with that goal. From a selling allowing their architecture to create
eliminated it. perspective, the customer is the goal. buying opportunities. A vehicle display
Sexy vehicles on display by the front and customer-waiting patio, complete
Let’s begin thinking of simple ways to door will have customers out of their with landscaping and park benches, sits
create an outdoor shopping environment car and touching the product. As the directly between their customer parking
that is festive, yet frugal; organized, but buying opportunity builds, they will and showroom. It has doubled the size
not stoic; visually tempting and still easy wonder about which additional upgrades of their showroom, enhanced their front
to plow snow during the winter. and colors you may have in stock. Your entrance and serves as a consolation area.
product will encourage them to find and On beautiful days, service customers
Customer’s needs are simple; less is talk to a sales person on their own. prefer to sit outside. When they see the
more. Less confusion, more freedom, cars, they start talking to the sales team.
less obstacles, more power. Give them Invisible sales team. It’s a very customer friendly situation.
what they want, and they will gladly walk This is the most common mistake made
around and spend time with you. by the auto industry. The car lot is the Inviting customers to voluntarily park,
only retail environment where you will shop and talk (at their own pace) is
Create a pedestrian environment. find the sales people waiting outside the key to eliminating frustration and
Much of the auto-buying experience is to greet a customer the second they nervousness about the sale. Design your
focused on walking the lot. Make the see them pull on the lot. Remember, property to force and entice customers
experience more enjoyable, and people in a buying environment the vehicle is to park before they look and then look
will stay longer than anticipated. Start the goal; in a selling environment the before they talk. This is the way to
by separating the rows of back-to-back customer is the goal. Eager sales people create a pedestrian friendly environment
cars by four or five feet, then paint the at the front door are looking for ups. that encourages browsing, promotes
asphalt yellow. Lay a row of brick pavers Yes, they are there to help the customer, conversation and increases sales volume.
into the asphalt to create a pedestrian but from the customer’s perspective Employ these simple site layout ideas,
crosswalk and viewing aisle. A shade all that sales person wants to do is sell and soon, you too will profit from your
tree, with a park bench offers relief on them something. Dealers have set up architecture.
a sunny day. A gazebo in the middle of this method because it has been so easy
a larger lot, especially on a nice day, for customers to take the short loop and
can be a quiet place to look at brochures avoid the sale. An intimidated customer
among the product or an extra closing is more likely to be cautious and less Jeff Margaretten is the Managing
booth needed during peek time. Place a trusting, making it harder for your sales Principal of P3 Automotive. He can be
cooler of lemonade inside, and you have team. A ready customer seeks assistance. contacted at 866.856.6791, or by email
a chance to converse. Give the customer the opportunity to at jmargaretten@autosuccess.biz.
september 2003 9

10. sales tips with David Thomas
DavidByThomas
David Thomas
Improve Your Closing Ratio
When do you with. I always promised my customer an if they like you and if they are inclined to
start to close your enjoyable buying experience, and I lived buy from you. What does all this have to
customer? up to the task. I started doing every deal do with the closing? It’s simple. If they
with personality, not with discounting or don’t like you, they probably won’t buy
sales tricks. If you do this, you will close from you, or they will be much more
more deals and make more money. difficult to close. Put more energy into
A. During the test drive. the first few minutes when you meet, and
B. During the walk-around. Here are some suggested tips: it will make your test drive and product
C. Standing on the showroom floor. presentation much more effective.
D. When your customer starts to • Be aware of the first impression
leave. that you make. You either relax your Now that you have fine-tuned your
E. When your boss tells you. customer or scare them immediately. greeting, work on your closing. Turn
F. None of the above. • Smile – even when you’re on the what the customer fears most into
phone. A smile disarms and puts the most enjoyable part of the buying
The correct answer is F. You should start everyone at ease. experience. How do you do this in an
closing a deal in the first three seconds • Be enthusiastic. It’s contagious. If efficient, profitable, timely and friendly
after you greet a new customer at the you’re excited, they are excited. manner?
dealership. No, you’re not asking for the • Be knowledgeable. Know the
sale in the first few seconds, but you are answers to the questions your Your goal is to: maintain gross, minimize
starting to build a relationship and initiate customer asks. any negotiating, motivate an immediate
rapport. It’s really simple. People want to • Be user friendly. It should be easy buying decision.
(and will) buy from someone they like. and pleasurable to do business with
I didn’t sell over 3,000 cars because I you. Focus on a relaxing, friendly closing
was the best sales person. I sold a lot of • Dress professionally. Your environment where the customer truly
cars because I made extreme efforts to appearance will effect their overall perceives a win-win outcome. This can
be likable and to be easy to do business impression of you and your product. be the easiest and most enjoyable part
• Watch your body language. If of selling a vehicle if you let it. A typical
you look stressed, your customer will closing could sound like this:
become stressed.
• Make eye contact. Show your Sales associate: (Manufacturer’s name)
customer the respect that they has built an enjoyable car to drive. How
deserve. was your test drive?
• Be fun and exciting. People like to
laugh and be entertained. Customer: Very nice.
• Be sure to connect. People know if
you really care about their needs. Sales associate: Our service department
• Ask questions with positive has made it easy and enjoyable to service
answers. How are you? Isn’t it a your new car. You met your personal
beautiful morning? advisor, correct?
Heard the buzz? Find out for yourself what it’s all about. CarChip
is “a useful tool for the professional,” says one service manager.
• Nod your head while you listen.
“Technicians dealing with intermittent issues can program CarChip to Instill positive feelings. Customer: Yes, he is great.
monitor suspect circuits, and then return the vehicle to the customer.”
It’s affordable, so there’s no need for large deposits. And once Some auto dealers do an outstanding Sales associate: This (vehicle make and
your customers find out about it, they may very well want one for
themselves! Attractive packaging and full-color point-of-sale display
job of making customers (your guests) model) is enjoyable to drive. We’ve made
help make the sale—adding to YOUR profits! feel at home and comfortable in the first it enjoyable to service as well. My mission
Monitor any 4 out of 23 possible engine parameters including: few seconds of their arrival. Remember is to make it enjoyable to buy. I pledge to
• RPM & engine load • Fuel trim • Intake air temp to make everyone feel like a guest in keep it simple and straightforward.
• Throttle position
• Fuel pressure
• Battery voltage
• Timing advance
• Intake manifold pressure
• Air flow rate
YOUR home. How do you greet your
• Fuel system status • Coolant temp • Oxygen sensor voltage friends when they arrive at your home Customer: Fantastic.
Plus trouble codes, freeze-frame sensor readings, speed, distance, for a visit?
and accels & decels. Up to 300 hours of trip data—all for just $179! If you truly strive to produce an enjoyable
Plugs instantly into OBDII port. Download to PC for
detailed analysis and graphing. Customers shouldn’t have to and don’t buying experience for your customers, be
ner want to walk through a crowd of sales a good communicator, be straightforward
Ask how YOU can become Win
e e re
d people in a ‘smoke fest’ on the front and keep it simple, you will be surprised
an authorized reseller! Engin duct
Bestew Pro
N porch of the dealership. If you must how many customers just say ‘yes’.
smoke, do it away from customer areas.
David Thomas is the Owner of Subaru
TM
™
AUS0310
I remind you of this because you would
be amazed at the impact that your initial of Dallas. He can be contacted
Davis Instruments
3465 Diablo Ave, Hayward, CA 94545 greeting has on the closing process. at 866.429.6803, or by email at
866.297.3152 • www.carchip.com Customers decide in a matter of seconds dthomas@autosuccess.biz.
10 autosuccess.biz

12. sales and training solution
RobByMudd
Rob Mudd
Five Principles
of Effective Advertising
Jack Welch, the principles into your advertising for The Expectancy Theory says, “People
former CEO of increased success. Here are five principles experience what they expect to experience
General Electric, for an effective advertising message: and see what they expect to see.” Your
says in, The G.E. message must manage this.
Way, that business 1. Attention getting headline
is pretty simple. 2. Simply stated, true value The presentation of these five principles
His three keys to success are: simplicity, 3. Urgency can vary greatly, hard sell to soft sell;
consistency, repetition. Implement 4. Repeat the offer it doesn’t really matter as long as these
these three keys and the following five 5. Ask for the order primary elements stay consistent. It
is like baking two cakes, vanilla and
chocolate; they taste different, but the
basic ingredients stay the same (sugar,
flour and eggs). The same holds true for
your message, they may sound different,
but the basics remain the same.
Once you adhere to the principles of
creating your message, let your target
demographic hear what you have to say
and continually remind them. Each day
the average person is hit with over 3,200
different messages. Your message has
to make people want to hear what you
have to say. Clarity and simplicity is
comforting in today’s very complicated
world. Simplify everything.
Last year, 16.8 million new vehicles and
43 million used vehicles were purchased.
In the US, there are 180 million licensed
drivers. By dividing 59.8 million vehicles
by 180 million people, divided by 12
months, you come up with an estimated
2.63 percent. This is the percentage of the
market looking to buy a vehicle during
any given month. The only challenge is
that you do not know their names. This
is why you have to stay consistent, and
keep the message simple. Don’t waste
your valuable advertising message with
confusion. Get to the point, tell them
what you have to sell and why they need
to buy it from you, and ask them to come
buy it now.
You have to stay consistent with your
advertising message. You need to keep
your message out there looking for that
2.63 percent. Keep your message simple,
consistent and repetitious. And, always
keep these five principles in mind to
make your advertising most effective.
Next month, we will address implementing
the advanced equity program into your
advertising message.
Rob Mudd is the Senior Vice President
of The Mudd Group. He can be
contacted at 877.804.3485, or by email
at rmudd@autosuccess.biz.
12 autosuccess.biz

13. f&i solution
GeorgeGeorge Jackson
By Jackson
Maximize Your
Menu Presentation
In your F&I should disclose the base payment
department, you without coverage (because no coverage
have to ensure is always an option), disclose term, APR
that you are and WAC (with approved credit).
utilizing your
menu form to the fullest. When you The first plan on the menu should
have an effective menu form, you include all of the products and each
will be able to give an effective menu product should be verbally disclosed,
presentation. A menu presentation is fully and completely. This is where
not just reviewing the form. It is a the presentation begins and the need
presentation philosophy. If you want is generated for each product. For
to maximize your menu presentation, example, stating to the customer that
consider the following for your menu he/she will get credit life protection
layout: in the plan is not enough. It should be
disclosed in the following manner, “You
Products. will also receive credit life protection.
Every product offered in the finance This will pay off the loan in the event
office should be on the menu. Deciding of your death and leave your estate with
the order of the products can be somewhat a free and clear title to the vehicle. This
difficult. Factors such as profitability, coverage is not rated by your age, health,
penetration, cost and dealer participation job or hobbies, and there is no physical
(reinsurance, retros, etc.) have to be required. There is no waiting period for
considered. The decisions on how to coverage, and it pays in addition to any
lay out your products on the menu form other coverage you may already have.”
should be made jointly by the dealer, When disclosing the first plan, don’t sell
GM and F&I manager. Another option and don’t close. Let the customer listen
that has to be evaluated is how many without your opinions.
products you should actually offer in the
F&I department. Having a menu makes As you proceed from plan to plan,
the F&I presentation more efficient, but simply tell the customer what he/she
having to many products available could receives, what has changed, what he/she
become difficult. A good number to offer forfeits from the previous plan and how
is five. Even with the efficiency that a that affects them. An example would
menu form adds to the presentation, if be, “This plan is much like the previous
you review too many products, your plan. Your service contract is now for
customer may lose interest. five years rather than six, and you forfeit
the disability coverage. This means that
Plans. if you did become sick or injured and
Four is the most common and most unable to work, the monthly payments
productive number of plans to offer would still be your responsibility.” Once
on your menu form. You want your the presentation is complete, ask the
customers to feel as if they have been customer if he/she has any questions,
given enough options to choose a plan direct them to the payment options and
that will fit them. then ask, “Which plan would work best
for you?”
Visuals.
Finally, when creating your menu, make Putting emphasis on these areas is the
sure you have pictures and/or icons for surest and quickest way to increase your
each product. This adds to the visual F&I income and maximize your menu
effect of the menu and puts less emphasis presentation.
on the text. It makes it look cleaner and
will give it a more professional and
current look.
George Jackson is the Director of
Presentation. F&I Training for American Financial &
Now that the form is in place, a Automotive Services, Inc. He can be
consistent and professional delivery is a contacted at 866.280.0301, or by email
must. Your menu form and presentation at gjackson@autosuccess.biz.
september 2003 13

14. sales and training solution
Don Elliott
By Don Elliott
Wholesale Auto
Auction Basics: Do It Right
Understanding the the order of the auction immediately after yellow light indicate caution and buyers
rules of an auction the sale. are advised to listen for announcements
can make a trip about defects or mechanical history
to an auction on Once approved as a buyer, the auctions issues. Again, it is the seller’s
sale day produce will provide a bidding number specific responsibility to disclose any defects and
maximum results. to that buyer representative. Keeping to make sure that such defects are noted
Wholesale auto auction rules vary from the bid number easy to spot by the on the bill of sale. Cars sold under a red
state to state and at each individual auctioneer assures that a bid will be light are sold as is. A red light means that
location. However, basic regulations are taken. The auctioneer in the lane is the there is no arbitration available with the
consistent at most auctions. ultimate judge of the successful bidder. possible exception of frame damage or
Auction law generally provides that cracked engine blocks. Older cars and
For first time auction buyers, it is when the auctioneer ‘drops the hammer’ high mileage cars are typically sold
imperative that your dealership is and announces ‘sold’, the sale contract under the red light, although, they may be
properly registered before auction is made. otherwise mechanically sound.
sale day. Wholesale auto auctions
stipulate that all transactions are for Generally, the auctioneer’s responsibility If the seller does not have the vehicle
licensed automobile dealers only. Retail is to determine the highest bid price that title at the auction at the time of sale, an
customers and minors are not allowed. A is acceptable to the seller of each unit additional light, usually noted as ‘T/A’
copy of a dealership’s license and a credit that crosses the block. It is the seller’s (title attached), will alert the buyer that
application are minimum requirements to responsibility to represent the condition, they may have to wait for the title after
purchase at auction. history, model, year and equipment to the the sale. Auctions generally will not
best of their knowledge when the car is accept vehicles that are non-titled, titles
Each dealership is responsible for offered for sale. Any misrepresentation that are marked ‘void’ or titles without
identifying its buying representative could result in arbitration. provisions for an odometer statement.
on its application. Many states require
that the representative must have an Auctions use a selling light system to To make a bid, it is necessary to catch
individual wholesale automobile license. alert bidders about the general condition the auctioneer’s attention and have them
of the vehicles being sold. The meaning acknowledge the bid. Often, auctioneers
Credit limits for each dealership are behind each light varies somewhat will use ringmen to help spot bidders.
established before the sale day. Auctions between auctions. In general, a green The ringmen will alert the auctioneer of
expect dealers to provide proper payment light means that the vehicle is represented a buyer’s intent to bid.
at the end of the sale. Any dealership by the selling dealer to be mechanically
authorized as a ‘cash only’ buyer must sound and will pass some form of test As the high bidder, the next step for the
provide cash or a certified check paid to drive by the buyer. Vehicles sold under a buyer is to collect the block slip or bill
of sale from the block clerk, usually
stationed in the auction lane. Block slips
Taylor Techniques, Inc.
can be exchanged in the checkout area for
gate passes and titles upon completion of
payment arrangements. At all auctions,
buyers must identify each vehicle as
AUTOMOTIVE SALES AND MANAGEMENT TRAINING paid in full, usually with a gate pass at
the security office before the car can be
• Taylor Techniques helped us sell 198 removed from the property.
vehicles in the first month, with an all- Auctions provide many post sale
time gross profit record. services, including transportation,
• The next 3 consecutive months we financing, post-sale reconditioning
and inspections. These services allow
beat that record. buyers and sellers alike to get the most
• Last month we sold 223 vehicles from their auction experience. When
combined with the auction rules and
with the highest grosses ever. Fran Taylor
regulations, these services can mean
is President
the difference between a satisfactory or
Taylor Techniques, you guys are the best! and CEO of Taylor
Techniques, Inc. outstanding day at the auction.
Michael Hoops, General Manager He can be contacted at
Marine Chevrolet, Jacksonville, NC MrFranTaylor@aol.com
Don Elliott is the Vice President of
Call Today! 866 873 0041 Marketing and Business Development
at ADESA Corporations. He can be
contacted at 866.429.6848, or by email
at delliott@autosuccess.biz.
14 autosuccess.biz

15. marketing solution
Dennis McDonough
By Dennis McDonough
Sales From the Internet:
Protect Your Computers
There are many 2. Use a firewall: No good network Once your system has been updated, you
worms and viruses administrator would connect their can go to your control panel, and click
out today that could companies network to the Internet on the Automatic updates icon. In the
potentially cause without a firewall. Do not connect settings area the third item will schedule
you computer your computer to an Internet service downloading and installation of new
problems. Be provider without one? updates for you.
aware of these notices and how to
protect against them. Think about a firewall being the Not all worms or viruses are made for
watchdog that keeps things away Windows computers. Windows seems
Many notices about computer viruses from your computer. A firewall can to be the number one target. Check with
that people receive are not legitimate. be a hardware device or software your operating system developer for
You can confirm a notice at CERT. The on the PC. There are many good their latest protection system.
CERT Coordination Center is a renown firewalls to choose from today at a
and respected information source. CERT minor cost or free. Take the time to see that all of these tasks
is located at the Software Engineering are complete on your computers. Your
Institute, a federally funded research and 3. Run the Windows automatic Internet connection will be faster, and
development center at Carnegie Mellon update manager: This is a free your computers will be more reliable
University in Pittsburgh, Pennsylvania. service from Microsoft. If you are and available for you to use.
CERT can be found on the web at http: running Windows 98, NT, ME, 2000
//www.cert.org. CERTs website contains or XP this service can be set up to
information that ranges from protecting work for you automatically. This is
your computers against potential installed by running the Windows Dennis McDonough is a Consultant for
problems, solutions to current problems update icon in your start menu. If it eCarLots.com. He can be contacted at
and predicting future problems. is not there, open Internet Explorer, 877.354.1998, ext 202, or by email at
select the tools menu and select dmcdonough@autosuccess.biz, or visit
Blaster is the latest worm, the next wave Windows update. www.eCarLots.com.
of harassment for computers without
current Anti-Virus software or the
released critical updates. The amazing
thing about the worms or viruses that are
being released on the web is that they PROFIT...FROM
can easily be stopped. Virus creators are
not computer geniuses that are creating YOUR
something really new. They watch for
discoveries that others make as security ARCHITECTURE
holes in the operating systems. The
hackers take that information and set up Over 300 new and renovated
a program to propagate itself out to other dealerships designed across
computers. Kits are even available for USA and Canada
download; it isn’t difficult.
On-site Facility Design
Worms and viruses cost all computer Surveying
users time and money. Computer Feasibility Studies
systems would be much faster if they Inclusive Design Meetings with
did not have to run these extra software management team
programs. Just remember, Blaster is not
the first and will not be the last program Increased CSI scores and profit
that disrupts the Internet. per transaction
Consulting to local
You can help stop the next threat now by architects and
taking a few simple steps: contractors
Design - Build
1. Run anti-virus software: Software Services
is available for download, and a praxis3 company
some excellent programs are free.
Installation is just the beginning.
Set up fulltime protection, including
866.856.6791
jmargaretten@praxis3.com
email. Schedule an automated update miguel@praxis3.com
process, and scan your system on at
least a weekly basis.
september 2003 15

16. feature solution
SarahSarah Gauss
By Gauss
Maximizing Profits
on Every Deal
Dealerships have great potential to determine his/her ability to pay. important, once this information is
generate a lot of profits. If you look entered, it should go into a retrievable
close, you might see a few places where Finally, during the negotiation step, database. Otherwise, the manager will
your potential profits are slipping away. the manager calculates the financial waste valuable time re-typing the same
variables of the deal to produce options information over and over.
One of these places is unknowingly, that are satisfactory to both the customer
yet commonly, found at the sales desk. and the dealership. You should therefore look for an
Without the ability to write-up each integrated product that easily shares/
sale quickly and efficiently, time is The challenge for the manager is to have swaps information gathered during the
unnecessarily spent. Without easy access all the right tools during each of these write-up, qualification and negotiation
to customer qualification data, time may steps in order to construct and close the steps. Taking this even further, any
be wasted on a sale that won’t happen. best deal. information gathered during the initial
Without being able to offer a customer meet and greet and test drive should also
acceptable sales and/or leasing options, Tools that help managers be accessible, resulting in even less of a
the potential buyer might just opt to walk construct more proÞtable deals. need to re-input data.
out the door. Software technology has been developed
to help managers better manage the steps 2. Ability to compare a wide
How can you stop this from occurring described in a seamless fashion. The variety of lenders (captive, non-captive).
and maximize your profits? The solution resulting efficiencies can lead to bigger About 90 percent of the customers
is to incorporate easy-to-use technology dealer profits. walking into a showroom are going
that helps you manage and control to make their purchase decision based
the key steps during the vehicle sales A number of products are available on payment affordability. To ensure a
transaction. to help the dealership control and sale is made, it is essential to be able
manage deal write-up, qualification and to show customers that a payment plan
Understanding the three negotiation. is indeed possible. By having the right
key steps prior to the close. tools available, dealerships can offer
There are multiple recognized steps What to look for in desking solutions. leasing alternatives to increase the odds
in a dealership’s overall sales process, When selecting the technology solution of closing a deal.
lets focus on the three related to the that is right for your dealership, take
working deal: write-up, qualification and these key criteria into consideration: The right desking solution for your
negotiation. dealership should provide the sales
1. Captures data accurately the first manager with the ability to compare
During the write-up step, or ‘penciling time numerous programs with speed and
the deal’, the sales representative gathers 2. Ability to compare a wide variety accuracy. Most dealers have relationships
pertinent information about both the of lenders (captive, non-captive) with an average of five lenders to address
customer and the selected vehicle. If 3. Includes an up-to-date leasing consumer vehicle financing needs. Each
the customer has a vehicle for trade, component lender has multiple lease programs
information on this car should be 4. Utilizes an ASP (Application according to term, tier, vehicle and
recorded as well. Service Provider) option other criteria. They also have their own
5. Part of a fully integrated, rules for excessive mileage charges,
After the write-up, the qualification seamless solution acquisition fees, lease termination and
step ensures that the selected vehicle 6. Easy to use and learn calculating the dealer reserve.
accurately meets the prospect’s financial
needs. During this step, the manager 1. Capture data accurately. In the past, the sales manager typically
reviews the write-up information and The information captured during the referred to books and bulletins and hand-
with the prospect’s written consent, write-up and qualification steps needs calculated each permutation of the deal
runs a credit report on the prospect to to be accurate and complete. Just as in the F&I system to find the best fit for
16 autosuccess.biz

17. both consumer and dealer. It can be time a provider that already maintains leasing with F&I all from the same location or
consuming and is prone to error. information for both new and used screen.
vehicles from one centralized location
Technology has automated the process that can be accessed by simply logging Please be very careful when considering
to not only save time but also increase on to the site. the possibility of using a new technology
accuracy while also providing additional vendor. Not all systems easily integrate
options to structure the best deal. The Several desking solutions available with competitive systems. If you aren’t
right technology solution should take today not only offer leasing information cautious and verify its compatibility,
the sales manager through the following but also deliver them in a simple online you may find yourself playing referee
simple three-step negotiation process format. These products allow the between several vendors and/or trying
right on their desktop system: dealership to compare terms, mileage to reconfigure your complex technology
and lease programs from numerous system yourself.
• Vehicle identification: The lenders over the web instantly.
manager can configure the vehicle or 6. Easy to use and learn.
retrieve one from inventory. If a deal 4. Utilizes an ASP option. The right product needs to be accessible
has already been entered, the deal Many technology solutions available by all employees and easy to learn. Some
can be instantly recalled. to dealerships today run on an ASP of the easiest to use products feature rich
• Gathering and comparing lender deployment configuration. This means web-enabled tools. These provide a
info: Displays the best programs that that the application runs on a centralized graphic user interface, drop-down menus
meet the requirements. web server in a secure data center with and simple point and click commands.
• Bank detail: Provides a worksheet 24/7 support. ASP can allow a dealer to
allowing the manager to review the focus on the core business and leaves the Ease of use is particularly important when
deal details and work out any final day-to-day technological management the sales manager is constructing several
numbers. responsibilities to the service provider. deals simultaneously. It is critical to be
able to switch between deals without the
With this information, the manager 5. Part of a fully worry of losing critical information.
can quickly quote lease and balloon integrated, seamless solution.
finance payments using accurate The gathering of customer data and An investment that
lender information. They can also analyzing both lending and leasing quickly pays for itself.
generate dealer-closing lease vs. buy information are just one part of a By asking the right questions and
comparisons. dealership’s fully integrated technology knowing what to look for, you’ll be
solution package. This data should be able to select the right technology
When choosing the right technology just as easily accessible to the dealer solution that’s best for your dealership.
solution for your dealership, look for as other desking and F&I information, You will find that you can operate more
one that provides the ability to compare including: efficiently, capture lost sale opportunities
multiple vehicle options. This will and help plug any profitability leaks. In
allow the opportunity to encourage • Vehicle inventory information due time, the only flow you’ll see is the
up-selling, helping you maximize your • Electronic credit approval positive one that leads to your increased
front-end gross. The solution must also • Electronic lending approval revenue stream.
have additional options for structuring • Automated business forms
the deal, so the back-end gross can be • Additional business office
maximized as well. functions
Sarah Gauss is the Product Manager
3. Includes up-to-date Þnance data. If configured correctly, a dealer should for Front-End Applications at ADP
To eliminate the need for the manager to have the ability to access credit bureaus, Dealer Services. She can be contacted
monitor constantly fluctuating interest pull information from the DMS, look at 866.441.2785, or by email at
rates, it is recommended that you choose up lending institutions and interface sgauss@autosuccess.biz.
september 2003 17