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3834 Taylorsville Rd., Building A, Ste. 1B   PRSRT STD
                                   Louisville, KY 40220                         US POSTAGE PAID
                                                                                FARGO, ND
                                                                                PERMIT 684
November 2009
                Check out our New Classified Section on page 37
With nearly 100 year
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Protective Acquires The Prizm Group
         Protective is proud to announce the acquisition of Prizm’s service contract

             business. A strong base of 3,000 dealers supported by an experienced

                                          agent group have joined the Protective family.

            We look forward to this exciting new partnership!




                                                                                                        Vehicle Service Contracts             I   GAP Coverage            I   Credit Insurance
                                                                                      Dealer Participation Programs                 I   F&I Training         I   Advanced F&I Technology



                                                                                           Serving Automotive
                                                                                            Dealers Since 1962
                                                                                                                                            866.924.5341
                                                                                                                                            www.protective.com/dealerservices

Vehicle Service Contracts (VSCs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, Old Republic Insurance Company backs VSCs, and GAP is not available there.
                      Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.
AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccessonline.com. Subscription rate is $69
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                                                                                                                                               and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other
                                                                                                                                               magazine to which this magazine may be linked from time to time. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. 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
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3834 Taylorsville Rd. Building A, Ste. 1B Louisville Kentucky 40220 | 877.818.6620 / 502.588.3170 | AutoSuccessOnline.com / AutoSuccessPodcast.com | info@autosuccessonline.com
                                                     Ken
 Susan Givens, Publisher                                                                                      Thomas Williams, VP & Creative Director                                                                                    Dave Davis, Editor & Creative Strategist                                                                                                                                        Brian Ankney, Sales-Improvement Strategist                                                                                                                                                                    John Warner, Sales-Improvement Strategist
 sgivens1@autosuccessonline.com                                                                               design@autosuccessonline.com                                                                                               ddavis@autosuccessonline.com                                                                                                                                                    super6@autosuccessonline.com                                                                                                                                                                                  jwarner@autosuccessonline.com
feature solution




                                                                                                                             leadership solution




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  marketing solution
                                                                                                                                                                                                                                                                                                                          sales & training solution




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      CARS: TRAFFIC COUNTS, ATTITUDE AND BASICS
                                     MAKES THE SWITCH AND WHY...




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Don’t Let Your Facebook, MySpace or Twitter Account Get Your
                                                                                                                                                                                                                                                                               DECIDE THAT WHAT YOU ARE DOING IS REALLY




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          REPUTATION MANAGEMENT STRATEGY, PART 2

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   WANT A ‘GOOD DEAL FOCUS LESS ON PRICE
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       BUILDING A TOP-RATE SERVICE DEPARTMENT
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      THE ONLY CONSTANT IS THE ART OF SELLING
                                                                   HOW THE TASCA AUTOMOTIVE GROUP LEVERAGES




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                POS VISUAL MEDIA ADVERTISING - THE BEST
                                                                                                                                                                                                                                                                                                                                                                                 CREDIT CARD PROCESSING TODAY - WHY IT
                                                                   BEST-IN-CLASS TECHNOLOGY AND WORLD-CLASS




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          WHY DEALERS NEED A SOCIAL MEDIA AND
                                                                                                                                                                                                                                                                                                                                                                                                                           SIMPLE STEPS TO ESTABLISHING RAPPORT
                                     TASCA AUTOMOTIVE GROUP




                                                                                                                                                                                                       CHOOSE TO WIN OR CHOOSE TO LOSE

                                                                                                                                                                                                                                           THE POWER OF A POSITIVE ATTITUDE




                                                                                                                                                                                                                                                                                                                                                                                 IS CRITICAL TO YOUR DEALERSHIP
                                                                                                                                                                                                                                                                                                                                                      WHY VELOCITY MANAGEMENT?
                                                                                                                                                   NOTHING FAILS LIKE SUCCESS




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   AND MORE ON OUTCOME
                                                                                                                                                                                                                                                                               WHAT YOU WANT TO DO
                                                                                                                                                                                DEGREE OF DIFFICULTY
                                                                   CONSULTING TO DRIVE RESULTS




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                BANG FOR YOUR BUCK
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 SALES FORMULA 2009




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    ’?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Dealership Into Trouble
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  BE CAREFUL:




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                     By ErikStuttz




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         RichardLibin
                                                                                                                                                                                   SteveBrazill




                                                                                                                                                                                                                                                                                 GeorgeDans




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                                                                                                                                                      StephenR.Covey




                                                                                                                                                                                                          MarkTewart

                                                                                                                                                                                                                                               PaulCummings




                                                                                                                                                                                                                                                                                                                                                                                                                                TomHopkins




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   KirkManzo




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            ChuckPatton




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                                                                                                                                                                                                                                                                                                                                                         DalePollak




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                                                                                                                                                                                                                                                                                                                                                                                                                                                                  SeanV.Bradley
     November 2009




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                                                                                                                                                                                  george dans                                                                                                                                                                                                                            dale pollak                                                                                                                                                                                                                                                                  chuck patton
leadershipsolution                          StephenR.Covey                                                                                                                               SteveBrazill




                                                                                                                                               leadershipsolution
                                            NOTHING FAILS                                                                                                                                DEGREE OF
                                            LIKE SUCCESS                                                            “As you ponder
                                                                                                                    your challenges,
                                                                                                                    consider if you
                                                                                                                                                                                         DIFFICULTY
                                             Are you struggling       based on the evidence of results or lack of   need a new                                                             One of the useful       customer makes his or her first-ever visit        Perhaps you will want to run a simple score
                                             to make changes or       results, we need a new approach.              mindset, a new                                                         features of running a   to your dealership. This should be a joyous      on your operation. For every employee you
                      respond to changing conditions? I know                                                        skillset or toolset.                            business is the frequency with which we get    event in the life of your business – an          have who makes difficult work appear easy,
                      many people right now are being forced to       As you ponder your challenges, consider                                                       to “go to school” on other businesses. We      opportunity to create a favorable first           give yourself a point. For every employee
                      change the way they work or live because        if you need a new mindset, a new skillset     You may need to                                 get many opportunities to be someone else’s    impression and launch a relationship that        who makes difficult work appear difficult,
                      of our turbulent environment. What we           or toolset. You may need to adjust your       adjust your view,                               customer, and it’s instructive to observe      will provide a revenue stream that lasts for     give yourself zero points. And for every
                      might all consider in these times is what the   view, try a different perspective or a new         try a different                            how they treat us.                             decades and, when managed well, leads to         employee who makes easy work appear
                      great historian Arnold Toynbee once said:       way to think about it. You then may need to           perspective or                                                                         referrals that spawn even more multi-decade      difficult, subtract a point. (If you have any
                      “Nothing fails like success.”                   acquire some new skills or tools to tackle              a new way to                          I recently had an experience reminding me      revenue streams.                                 employees in that category, please ask
                                                                      the problem. Whatever the case, you may                think about it.                        that an employee’s customer service skills                                                      yourself a simple question: Why?) It goes
                      What does that mean exactly? Well, if you       need to find a new model to drive success.               You then may                          can generally be categorized into one of       So what happens when that new customer           without saying that your score should be a
                                                                      This can be an exciting proposition because                                                   three levels:
                      consider the challenges you’re facing, you                                                           need to acquire                               1. Makes easy tasks look difficult
                                                                                                                                                                                                                   enters your dealership? Are your people          positive number. Congratulations if your
                      might just be using an old approach that        you will most likely find new growth                  some new skills                                                                         so preoccupied with their “difficult” jobs        score is equal to your number of employees.
                      isn’t equal to the challenge. In other words,   and development in the process — this is                                                           2. Makes difficult tasks look difficult     that they muff the opportunity to create a       If it is less than your employee count, you
                                                                      success!
                                                                                                                         or tools to tackle                              3. Makes difficult tasks look easy
                      when we have a challenge and the response                                                                                                                                                    good first impression? If a new customer,         have work to do.
                      is equal to the challenge, that’s called
                                                                                                                             the problem.”
                                                                                                                                                                    Employees who make difficult tasks look         being unfamiliar with your business (as
                      success. But once we have a new challenge,      Remember: Nothing fails like success. Be                                                                                                     new customers tend to be), wanders into          A final thought: At which level do you
                                                                      vigilant and be ready to continually learn                                                    easy are worth their weight in platinum.
                      the old, once successful response no longer                                                                                                   They serve as role models for others in your   the wrong department, asks the wrong             perform? You can bet your employees are
                      works. That’s why it’s called a failure.        and adapt to new challenges, which will                                                                                                      questions or shows up without an important       keeping score on you!
                                                                      surely come your way.                                                                         organization, calmly put out fires and slay
                                                                                                                                                                    problems while spreading confidence and         item of paperwork, how will your people
                      We have to examine our paradigms (our                                                                                                         enthusiasm in their wake. As powerful as       respond? Picture a fork in a road. Now
                                                                      Stephen R. Covey, Ph.D., is co-founder
                      view of things), our tools and our skills to    of FranklinCovey, and is the author of                                                        their impact on other members of your team     picture an employee who routinely makes
                                                                                                                                                                                                                                                                    Steve Brazill is the chair of automotive
                      determine if we’re approaching the problem      The 7 Habits of Highly Effective People.                                                      can be, that is nothing compared to their      everything appear so easy that a new             marketing for Northwood University,
                      in the right way. As a first step, we may even   He can be contacted at                                                                        effect on your customers.                      customer’s transition to your store feels like   Texas Campus. He can be contacted at
                      step back and make sure we’ve correctly         866.892.6363, or by e-mail at                                                                                                                a no-brainer. Now picture an employee who        866.861.1515, or by e-mail at
                      defined the problem. Then we need to see if,     scovey@autosuccessonline.com.                                                                 Consider what happens when a new               makes that process feel difficult.                sbrazill@autosuccessonline.com.




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                     www.autosuccessonline.com                                                                                                                                                                                  the #1 sales-improvement magazine for the automotive professional
marketingsolution                           ChuckPatton



                                            BUILDING A TOP-RATE
                                            SERVICE DEPARTMENT
                                             In down times,            can when they drop off their car. Maybe
                                             like we’ve all just       customers realize that, or they have more
                     experienced, dealerships often rely on service    time, or more people are not working. The
                     departments and fixed operations to ride           number of waiting customers used to be about
                     out the storm. I recently sat down with Pat       25 percent. It’s now more than 50 percent,
                     Arnotte, service director of Delaware’s Porter    and it’s pretty steady across the board with
                     Automotive Group, an organization that has        people I’m talking to. If you want volume
                     shot to the top ranks of service departments      coming through your store, you need to bring
                     in the northeast United States.                   in more of these waiting customers. The more
                                                                       waiting customers you bring in, though, the
                     Chuck Patton: Pat, tell us a little bit           harder it is to load up your shop, because
                     about your background, and how                    you’re constantly pulling techs off of big jobs
                     you came into this industry.                      to get these customers in and out. It’s just
                     Pat Arnotte: Well, my mother was actually         really tough with the waiters.                  “The biggest thing that I see most dealers
                     a controller in the car business for more than                                                         not utilize is their own database.
                     40 years. From the time I was 12, I washed        CP: How have the marketing needs                     They have names, addresses, phone
                     cars in the summertime until I got a driver’s     of service departments changed in                    numbers, years, makes, models and
                     license and started to deliver parts and work     recent months?                                       mileage. In my stores alone, we have
                     my way up the parts side. At 22, I was a parts    PA: There have been big changes. Things that         information on 22,000 people.
                     manager, and was parts and service director       have worked in marketing for years just aren’t       What I do with that information
                     by the time I was 26. I’m 43 now, and have        working now. We’re trying to come up with
                     been doing it ever since.                         new and different ideas to drive some traffic         is what drives traffic in my store.”
                                                                       through marketing, but there isn’t a “get rich
                     CP: Tell us about your dealership,                quick” scheme like there used to be. I used            makes, models and mileage. In my stores
                     Porter Automotive Group.                          to be able to throw out “20 percent off” in a          alone, we have information on 22,000
                     PA: We’re located in Northern Delaware,           direct mailer, and my shops just flooded with           people. What I do with that information
                     and are part of the Philadelphia market. Our      work. Right now, will it drive some traffic?            is what drives traffic in my store. I talk to
                     group includes Nissan, Chevrolet, Hyundai,        Sure, but not like we were used to.                    service managers who say, “I bought a Polk
                     Ford and Mitsubishi franchises. Our Nissan                                                               List.” Why would you buy something when
                     store is the store I originally took over seven   CP: Why do you think that is?                          you have plenty of information on your
                     years ago. They were No. 6 in a district of       PA: The customers want to get in and out               own to extract from your own database.
                     10 stores in customer-paid labor. That store      fast and not spend any money. Even when                Mine it! You can do model-specific mailers,
                     is now the No. 2 customer-paid dealer in          you show them that their brake pads are                mileage-specific mailers, “lost-souls” mailers
                     the whole New York region, or the eastern         metal to metal, some people just don’t have            – whatever you want. It’s information you
                     region, which runs from Maine all the way         the money and aren’t buying. I’d like to               already own and can easily get. Data mining
                     down to the bottom of the state of Delaware       compare the amounts of tickets over $1,000             is what really can make you a fortune if you
                     — that includes all the Philadelphia, New         this year to those last year at this time. I think     can figure out how to do it.
                     York and Boston stores, and our sales             we’re doing a lot more of those tickets than
                     volume is nowhere near what some of the           we were before, but what we’re not getting is          Next month, we’ll conclude our interview
                     other stores are. We do a very good job with      that mid-range, the $300 - $500 maintenance            with Pat Arnotte, and talk about the changing
                     retention.                                        jobs. The customers aren’t getting the 30,000          expectations of service managers, some of
                                                                       mile service – they’re just getting the oil            the most common mistakes service managers
                     CP: Describe how the changing                     changed.                                               can make, and some words of advice.
                     market has changed the way service
                     departments do business.                          CP: What opportunities exist for
                                                                                                                              Chuck Patton is the founder and CEO of
                     PA: One of the craziest things I’m seeing         dealers that are easier to realize than                Traffic Builders, Inc. He can be contacted
                     right now is the number of customers who          they might think?                                      at 866.859.8520, or by e-mail at
                     wait while their vehicles are being serviced.     PA: The biggest thing that I see most dealers          patton@autosuccessonline.com.
                     When a customer comes in and waits, you           not utilize is their own database. They have
                     really can’t sell them as much work as you        names, addresses, phone numbers, years,




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                    www.autosuccessonline.com
to the commitment and loyalty of their fans.    as a nationwide in-dealership consulting        with a customer and ensure every customer gets a Tasca experience. Since our custom CRM
                                                                                                    The NHRA is known for its open-pit policy,      company, to partner with a company that         process is spelled out — most of it is automated and all of it is measurable — I have access
                                                                                                    which allows fans an up-close and personal      delivered dealers a proven solution, as well.   to every report I need to manage my people. We can continuously improve our consistency,
                                                                                                    view of the race cars and crews. You can        So, we aligned Tasca University with the        professionalism and customer loyalty.
                                                                                                    watch firsthand how mechanics can rebuild        same CRM company, VinSolutions, that
                                                                                                    an engine in no time, or feel the power of a    Tasca Automotive now uses to help other         AS: Why is it important to measure and track performance?
                                                                                                    fuel-burning engine when the team test fires     dealerships throughout the country combine      ES: The best part about our new custom VinSolutions CRM application is that everything is
                                                                                                    the engines. It’s not unusual for the drivers   this custom technology with the people and      measurable. The biggest mistake that dealers and managers make is failing to use the reports
                                                                                                    to be found in their pit areas mingling with    processes within automotive dealerships.        they have available to them. A few minutes a week, or even once a month, can provide a great
                                                                                                    the fans and signing autographs. It’s no                                                        snapshot of how things are going, who is excelling and where your process needs fine-tuning.
                                                                                                    wonder that NHRA continues to have one of       At Tasca University, we are unlike most         We use these numbers to refine and adjust our strategy so we can continue to improve our
                                                                                                    the most loyal fan bases of any sport.          training companies in that we develop a         business. Our CRM application has certainly become the primary focus of our operations, and
                                                                                                                                                    curriculum built around two perspectives.       it really encompasses the whole dealership. When it comes down to it, whatever we’re doing
                                                                                                    Likewise, at Tasca Automotive Group,                                                            is working. Our general manager, Carl Tasca Jr., might have said it best: We are excited about
                                                                                                    their continued growth and success can          First, we deal with the procedural and          what we have accomplished, but we are most excited about what the future holds.
                                                                                                    be attributed to the “Tasca Way” of doing       mechanical aspects of implementing a
                                                                                                    business, which focuses on customer             CRM initiative within a dealership. Second,     Whether in the pits or the showroom floor, whether you are a racing fan or a dealership
                                                                                                    satisfaction. While the organization has had    we look at the implementation of the            customer of the Tasca family, you are sure to get a feel of their passion for leveraging
                                                                                                    some of the highest CSI scores in the nation,   technology, people and processes to create      incredible industry-leading technology and their genuine loyalty to those individuals
                                                                                                    Tasca Automotive has been able to increase      a success or desired result. Certainly, both    who are the sole reason that organizations like the NHRA, Ford Motor Company
                                                                                                    their sales and CSI further by leveraging       play an important role in the overall success   and the Tasca Automotive Group continue to thrive.
                                                                                                    best-in-class customer relationship             of any CRM and training program, but they
                                                                                                                                                    rarely play a role in developing the culture    Erik Stuttz is a partner and vice president of Tasca University. He can be
                                                                                                    management (CRM) technology and                                                                 contacted at 866.402.0697, or by e-mail at estuttz@autosuccessonline.com.
                                                                                                    their internal Tasca University consulting      necessary to win in the long term.
                                                                                                    program. These factors have driven their                                                        For more information about VinSolutions, contact Sean Stapleton at
                                                                                                                                                    This is what makes us different at Tasca        866.396.5266, or by e-mail at sstapleton@autosuccessonline.com.
                                                                                                    people, processes and technology with           University. Bob says that everything we
                                                                                                    measurable results.                             do at Tasca University is principle based,
                                                                                                                                                    and that principles don’t change over time
                                                                                                    We recently sat down with Erik Stuttz,          and are the fundamental building blocks
                                                                                                    partner and vice president of Tasca             necessary to establish the culture needed to
                                                                                                    University, to learn some of the secrets of     win in the long term. He reminds us that,
                                                                                                    their success.                                  at the end of the day, the customer will not    “By combining these core values developed
                                                                                                                                                    remember much about what was done or            over the years with best-in-class CRM
                                                                                                    AutoSuccess: How did you get                    even said, but they will never forget how we    technology, and then couple that with our
                                                                                                    started leveraging technology to                made them feel.                                 Tasca University consulting, we can provide
                                                                                                    increase CSI and sales?                                                                         dealers a proven solution that drives proven
                                                                                                    Erik Stuttz: We researched the best             By combining these core values developed        results. It’s the ultimate combination
                                                                                                    CRM providers in the country, looking           over the years with best-in-class CRM
                                                                                                    to partner with a company that had                                                              necessary to operate now, and in the future.”
                                                                                                                                                    technology, and then couple that with
                                                                                                    a proven automotive track record of             our Tasca University consulting, we can
                                                                                                    delivering results. We wanted a CRM             provide dealers a proven solution that
                                                                                                    that was designed to help our sales and         drives proven results. It’s the ultimate
                                                                                                    service departments maintain an ongoing         combination necessary to operate now, and
                                                                                                    relationship that fits with the Tasca Way.       in the future.
                                                                                                    After researching what the best dealers were
                                                                                                    doing, we signed up with VinSolutions, a        AS: How did you tie together
                                                                                                    company that we believed could help us          VinSolutions’ CRM technology and
                                                                                                    achieve our goals our way.                      your own people and processes at
                                                                                                                                                    Tasca Automotive?
                                                                                                    AS: How does this new CRM                       ES: Technology will help maintain
                                                                                                    technology tie in with your consulting          communication with your sales and service
                                                                                                    company, Tasca University?                      ownership base, but that is only as good as
                                                                                                    ES: Our new CRM provider gave us a way          the people, process, training and support
                                                                                                    to maintain ongoing communication with          that comes with it. When we launched our
   What does a hot rod and a drag racing organization have in common with a rural family-           our sales and service customers within our      new CRM initiative internally within Tasca
   operated dealership nestled in the quiet timberlands of Cranston, Rhode Island?                  entire automotive group. We now have a          Automotive, we took the entire management
                                                                                                    seamless, customized program to enable us       team off-site for two days to clearly define
   In a name, it’s “Tasca.” Tasca Automotive Group, a third-generation family business, shares      to communicate with our client base, and        our mission and vision, and created a step-
   the expertise and enthusiasm of their vice president, Robert “Bob” Tasca III, with the world’s   that is important to us because we don’t do a   by-step action plan for getting there. As a
   largest and loudest auto racing organization, the National Hot Rod Association (NHRA). Bob,      ton of advertising.                             result, we’ve developed a sales and service
   a hot rod enthusiast and pilot of a Ford Motorcraft Quick Lane Nitro Funny Car, has been                                                         model that defines exactly what needs to
   racing as a professional for two years. In that short period, he has already won two major       Our philosophy at the dealership for more       be done, how and when it needs to be done
   national events —The Gator Nationals in March and the Toyo Tires Nationals in August. And        than 65 years has been to rely on repeat and    and who is accountable, as well as defining
   don’t let the name fool you — it’s no laughing matter when the funny car that Bob is driving,    referral business, and our new CRM system       the performance results we need in order to
   a modified ’09 Shelby Ford Mustang, makes 8,000 HP and accelerates to 310 MPH in just             from VinSolutions provides us a better way      measure how well we’re doing.
   over four seconds.                                                                               to serve our customers.
                                                                                                                                                    We’ve created sales and service playbooks
1 But the NHRA, Ford Motor Company and Tasca Racing have more in common than just a                 We wanted Tasca University Consulting,          that clearly define, in detail, how we
2                                                                                                                                                   manage the entire life of our relationship
   vibrant presence. The continued growth and success of these organizations can be attributed      the division of Tasca Automotive that serves
sales&trainingsolution                         DalePollak                                                                                                                                                                 MarkTewart




                                                                                                                                                                              leadershipsolution
                                               WHY VELOCITY                                                                                                                                                               CHOOSE TO
                                                                                                                                                                                                                          WIN OR CHOOSE
                                               MANAGEMENT?                                                                                                                                                                TO LOSE
                                               For the past several      operating to remain profitable.                      a “must have” for a Velocity dealer.                                                         Traffic is slow,            Did you allow your expenses and debt to
                                               years, I’ve been                                                                                                                                                           business is weak, the      get too high? Did you allow weak processes
                         making a case for a new method of used          The need for such a profound change is              The technique that Velocity dealers use has                           economy stinks and banks aren’t buying.           and accept less-than-favorable results?
                         car management that I call “Velocity.” The      very difficult for many dealers to embrace.          two steps. First, the Velocity dealer takes                           Repeat this mantra 100 times and see how          Did you create an on-going relationship-
                         basis for needing a new strategy for making     Instead, many continue to price vehicles in         special care to know the individual physical                          you feel. I promise you that if you replay        based marketing program to your existing
                         money in used cars is the fact that the         the hopes of capturing the large grosses of         qualities of each and every vehicle. Some                             this message enough, you will believe it as       customers, or did you ignore your most
                         Internet has transformed the used car market    the past. In reality, this is the worst possible    vehicles are special, some ordinary, some                             absolute truth and become depressed and           valuable asset — your customers? Did
                         into an efficient market.                        strategy to achieve profitability in today’s         replaceable and some simply one of a kind.                            desperate. No matter what circumstances           you neglect to install and enforce daily
                                                                         used car marketplace.                               Such qualities certainly matter in making the                         are at present, the choice is simple: You         education? Have you massively self-
                         In an efficient market, buyers and sellers                                                           pricing decision. After the physical qualities                        choose to win or choose to lose.                  educated yourself on a daily basis to stay
                         have relatively equal knowledge of choices      Once – and only once – a dealer comes to            of the vehicles are assessed, the second                                                                                abreast of all developments in marketing,
                         and alternatives. With the Internet providing   terms with the reality that the old front end       remaining consideration for knowing which                             The one single ingredient that is always          technology, social media and marketplace
                         shoppers the ability to see every vehicle in    grosses of the past will not return, the only       vehicles should be priced high and which                              present in any success story is self-             changes? Have you created a marketing
                         the market and how they are priced, why         remaining question to be answered is how            should be priced low is an understanding of                           determination. You are always responsible.        plan based upon measurable direct response
                         should we believe that we will get lucky        the lost profits will be replaced. The obvious       their current supply and demand. Vehicles                             You are responsible for the good and you          media that you continually tweak? Do you
                         as often as we used to? Do we believe that      answer is that they can only be made up with        with high demand and short supply can be                              are responsible for the bad — it’s just that      allow excuses and surround yourself with
                         better negotiating tactics will overcome        additional volume. Achieving additional             priced with thousands of dollars of mark-                             simple. If you will allow any excuse for          excuse makers?
                         customer’s knowledge of identical choices       volume, however, requires a dealer to stop          up while vehicles with high supply and                                failure — no matter how overwhelming the
                         and alternatives? Do we think that blowing      pricing every vehicle with a large mark-up in       low demand need to be priced aggressively                             evidence — you have sown the seeds for            Success is based upon certain fundamental
                         up more balloons in the showroom or             an attempt to recapture the large gross profits      for a quick sale and a possible finance                                more excuses to follow.                           truths. Install and adhere religiously to those
                         putting a bigger gorilla on the roof will       of the past. To do so is like shutting the          opportunity.                                                                                                            truths without fail and you will succeed.
                         make the difference? Simply stated, the         oxygen off to a patient that is in desperate                                                                              To succeed in good or bad economies               Although everyone has setbacks, setbacks
                         business has changed, average front end         need. The correct approach is the Velocity          Equally important, the Velocity dealer must                           takes the exact same ingredients, but in          are not failures and are only temporary signs
                         grosses will not be what they once were,        method of management, which advocates               change the negotiating culture of their                               tougher times it takes more resolve to keep       to adjust and plan accordingly. Always ask
                         and we need to change the way we are            opening the valves wide by pricing vehicles         showroom to support their new pricing                                 producing the successful ingredients. Your        yourself, “What’s next?” Keep moving and
                                                                                                      at or close to their   strategy. The salespeople need to recognize                           success or failure is based upon your beliefs     adjusting. Success and failure are ultimately
                                                                                                      true transaction       that an approach more oriented to volume                              and philosophy. If you do not have a belief       a choice. The choice is yours.
                                                                                                      point. Under           than extraordinarily high average gross is                            system to support success and a personal
                            GET MORE SERVICE BUSINESS                                                 these conditions,
                                                                                                      traffic and sales
                                                                                                                             needed. Therefore, sales managers must
                                                                                                                             fully comprehend that the dealership’s
                                                                                                                                                                                                   philosophy of self-determination, you are
                                                                                                                                                                                                   subject to all forces that cause failure.
                                                                                                                                                                                                                                                     Mark Tewart is the president of Tewart
                                                                                                                                                                                                                                                     Enterprises. He can be contacted at
                                AND REDUCE COSTS                                                      immediately            vehicles are priced to sell, not to negotiate.                                                                          866.429.6844, or by e-mail at
                                                                                                                                                                                                                                                     mtewart@autosuccessonline.com.

                               WITH VIDEO E-MAIL!
                                                                                                      increase and used      To this extent, documentation replaces                                You must create an impenetrable mind
                                                                                                      car operations         negotiation in the showroom experience.                               — a mind that can sustain all attacks of
                                                                                                      experience a           Information is powerful and the Velocity                              negativity and philosophies of randomness.             “You must create an
                                                                                                      vitality and
                                                                                                      vibrancy that had
                                                                                                                             dealer can use their superior knowledge
                                                                                                                             about each and every competitive vehicle in
                                                                                                                                                                                                   The dirty truth is that most people do not
                                                                                                                                                                                                   believe in self-determination. Most people         impenetrable mind
                              $3500 COMPLETE PACKAGE                                                  been long lost.        their market to demonstrate to the customer                           are excuse makers, and have philosophies of              — a mind that can
                                                                                                      In order to
                                                                                                                             that the offered price is truly a great value.                        luck and a welfare belief system.
                                                                                                                                                                                                                                                       sustain all attacks
                                 Stay in front of your customers                                      successfully           The move from a traditional used car model                            In the United States, which is the richest              of negativity and
                                                                                                      implement the          to a “Velocity” model is a journey. Habits                            country in the world, with resources and                 philosophies of
                                  in a personal and unique way                                        Velocity strategy,     and practices that were successful in the past                        opportunities that can only be imagined by            randomness. The dirty
                                                                                                      dealers must have      need to be replaced with new ones. The good                           people in some parts of the world, people
                                                                                                                                                                                                                                                       truth is that most people
                            It’s trackable and costs less than direct mail!                           new technology
                                                                                                      and information
                                                                                                                             news is that today, many hundreds of dealers
                                                                                                                             are making the Velocity journey. These
                                                                                                                                                                                                   make excuses everyday as to how they
                                                                                                                                                                                                   cannot control their own destiny. It is much            do not believe in
                                Service specials presented in a video format                          to make better
                                                                                                      decisions.
                                                                                                                             dealers have found value in networking
                                                                                                                             with one another. Their shared experiences,
                                                                                                                                                                                                   easier make excuses than to take control of
                                                                                                                                                                                                   your own destiny. After all, how can it ever
                                                                                                                                                                                                                                                      self-determination.
                                   Customers just click to print a coupon                             Specifically,           challenges and successes help them navigate                           be your fault? The economy is so bad, and           Most people are excuse
                                                                                                      they must know         and serve to reinforce the rewards. The                               you certainly don’t control the economy.               makers, and have
                                        CHECK OUT AMP-MAIL AT
                                                  A                                                   which cars can be      growing community of Velocity dealers                                                                                     philosophies of luck and
                                www.advertisingm
                                www.advertisingmarketingpartners.com
                                         ti                                                           priced high and        is enjoying the rich rewards that are still                           The economy is made up of single micro-             a welfare belief system.”
                                                                                                      reduced slowly         available to those that are willing to adopt                          economies that create a larger macro-
                                                                                                      if necessary, and      the necessary new strategies and tactics.                             economy. You do control your economy,
                                                                                                      which vehicles                                                                               and it starts between your ears. When you
                                                                                                      need to be                                                                                   listen to the news and hear that things are
                                                                                                      priced low and         Dale Pollak is an author and the founder                              not good, do you allow that to be your
                                           70
                                           702-5
                                           702-597-1091                                               reduced quickly        of vAuto. He can be contacted at
                                                                                                                             866.867.9620, or by e-mail at
                                                                                                                                                                                                   destiny? After all, if you hear it on the news,
                                   david@advertising
                                   david@advertisingmarketingpartners.com                             if necessary.                                                                                it must be true, right?
                                                                                                                             dpollak@autosuccessonline.com.
                                                                                                      Knowledge of
                                       Please contact Lor Feiro or David Moline
                                                      Lori                                            this difference is                                                                           Let me ask you a few questions.
 1                                                                                                                                                                                                                                                                                                                                    1
 4                                                                                                                                                                                                                                                                                                                                    5
                         www.autosuccessonline.com                                                                                                                                                                                                                the #1 sales-improvement magazine for the automotive professional
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AutoSuccessNov09

  • 1. 3834 Taylorsville Rd., Building A, Ste. 1B PRSRT STD Louisville, KY 40220 US POSTAGE PAID FARGO, ND PERMIT 684 November 2009 Check out our New Classified Section on page 37
  • 2. With nearly 100 year end events available choose from conquest, database, super sale and internet events. End the year strong with Turn-Key Events. Booth #2927 We’ll deliver you a fresh holiday ® pizza the same day just for calling. No purchase necessary. The Driving Force Behind Event Advertising 866-476-7748 In order to qualify for a free pizza you must be a General Manager or Dealer. Minor details apply.
  • 3. Protective Acquires The Prizm Group Protective is proud to announce the acquisition of Prizm’s service contract business. A strong base of 3,000 dealers supported by an experienced agent group have joined the Protective family. We look forward to this exciting new partnership! Vehicle Service Contracts I GAP Coverage I Credit Insurance Dealer Participation Programs I F&I Training I Advanced F&I Technology Serving Automotive Dealers Since 1962 866.924.5341 www.protective.com/dealerservices Vehicle Service Contracts (VSCs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, Old Republic Insurance Company backs VSCs, and GAP is not available there. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.
  • 4. AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccessonline.com. Subscription rate is $69 per year. 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. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other magazine to which this magazine may be linked from time to time. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. 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, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220. 3834 Taylorsville Rd. Building A, Ste. 1B Louisville Kentucky 40220 | 877.818.6620 / 502.588.3170 | AutoSuccessOnline.com / AutoSuccessPodcast.com | info@autosuccessonline.com Ken Susan Givens, Publisher Thomas Williams, VP & Creative Director Dave Davis, Editor & Creative Strategist Brian Ankney, Sales-Improvement Strategist John Warner, Sales-Improvement Strategist sgivens1@autosuccessonline.com design@autosuccessonline.com ddavis@autosuccessonline.com super6@autosuccessonline.com jwarner@autosuccessonline.com feature solution leadership solution marketing solution sales & training solution CARS: TRAFFIC COUNTS, ATTITUDE AND BASICS MAKES THE SWITCH AND WHY... Don’t Let Your Facebook, MySpace or Twitter Account Get Your DECIDE THAT WHAT YOU ARE DOING IS REALLY REPUTATION MANAGEMENT STRATEGY, PART 2 WANT A ‘GOOD DEAL FOCUS LESS ON PRICE BUILDING A TOP-RATE SERVICE DEPARTMENT THE ONLY CONSTANT IS THE ART OF SELLING HOW THE TASCA AUTOMOTIVE GROUP LEVERAGES POS VISUAL MEDIA ADVERTISING - THE BEST CREDIT CARD PROCESSING TODAY - WHY IT BEST-IN-CLASS TECHNOLOGY AND WORLD-CLASS WHY DEALERS NEED A SOCIAL MEDIA AND SIMPLE STEPS TO ESTABLISHING RAPPORT TASCA AUTOMOTIVE GROUP CHOOSE TO WIN OR CHOOSE TO LOSE THE POWER OF A POSITIVE ATTITUDE IS CRITICAL TO YOUR DEALERSHIP WHY VELOCITY MANAGEMENT? NOTHING FAILS LIKE SUCCESS AND MORE ON OUTCOME WHAT YOU WANT TO DO DEGREE OF DIFFICULTY CONSULTING TO DRIVE RESULTS BANG FOR YOUR BUCK SALES FORMULA 2009 ’? Dealership Into Trouble BE CAREFUL: 36 09 32 20 14 16 08 15 28 18 22 30 10 34 26 By ErikStuttz RichardLibin SteveBrazill GeorgeDans RalphPaglia StephenR.Covey MarkTewart PaulCummings TomHopkins KirkManzo ChuckPatton MattBaker EricSelby DalePollak AdamDaniels SeanV.Bradley November 2009 pg 0 pg 4 pg 2 pg1 pg1 pg3 george dans dale pollak chuck patton
  • 5. leadershipsolution StephenR.Covey SteveBrazill leadershipsolution NOTHING FAILS DEGREE OF LIKE SUCCESS “As you ponder your challenges, consider if you DIFFICULTY Are you struggling based on the evidence of results or lack of need a new One of the useful customer makes his or her first-ever visit Perhaps you will want to run a simple score to make changes or results, we need a new approach. mindset, a new features of running a to your dealership. This should be a joyous on your operation. For every employee you respond to changing conditions? I know skillset or toolset. business is the frequency with which we get event in the life of your business – an have who makes difficult work appear easy, many people right now are being forced to As you ponder your challenges, consider to “go to school” on other businesses. We opportunity to create a favorable first give yourself a point. For every employee change the way they work or live because if you need a new mindset, a new skillset You may need to get many opportunities to be someone else’s impression and launch a relationship that who makes difficult work appear difficult, of our turbulent environment. What we or toolset. You may need to adjust your adjust your view, customer, and it’s instructive to observe will provide a revenue stream that lasts for give yourself zero points. And for every might all consider in these times is what the view, try a different perspective or a new try a different how they treat us. decades and, when managed well, leads to employee who makes easy work appear great historian Arnold Toynbee once said: way to think about it. You then may need to perspective or referrals that spawn even more multi-decade difficult, subtract a point. (If you have any “Nothing fails like success.” acquire some new skills or tools to tackle a new way to I recently had an experience reminding me revenue streams. employees in that category, please ask the problem. Whatever the case, you may think about it. that an employee’s customer service skills yourself a simple question: Why?) It goes What does that mean exactly? Well, if you need to find a new model to drive success. You then may can generally be categorized into one of So what happens when that new customer without saying that your score should be a This can be an exciting proposition because three levels: consider the challenges you’re facing, you need to acquire 1. Makes easy tasks look difficult enters your dealership? Are your people positive number. Congratulations if your might just be using an old approach that you will most likely find new growth some new skills so preoccupied with their “difficult” jobs score is equal to your number of employees. isn’t equal to the challenge. In other words, and development in the process — this is 2. Makes difficult tasks look difficult that they muff the opportunity to create a If it is less than your employee count, you success! or tools to tackle 3. Makes difficult tasks look easy when we have a challenge and the response good first impression? If a new customer, have work to do. is equal to the challenge, that’s called the problem.” Employees who make difficult tasks look being unfamiliar with your business (as success. But once we have a new challenge, Remember: Nothing fails like success. Be new customers tend to be), wanders into A final thought: At which level do you vigilant and be ready to continually learn easy are worth their weight in platinum. the old, once successful response no longer They serve as role models for others in your the wrong department, asks the wrong perform? You can bet your employees are works. That’s why it’s called a failure. and adapt to new challenges, which will questions or shows up without an important keeping score on you! surely come your way. organization, calmly put out fires and slay problems while spreading confidence and item of paperwork, how will your people We have to examine our paradigms (our enthusiasm in their wake. As powerful as respond? Picture a fork in a road. Now Stephen R. Covey, Ph.D., is co-founder view of things), our tools and our skills to of FranklinCovey, and is the author of their impact on other members of your team picture an employee who routinely makes Steve Brazill is the chair of automotive determine if we’re approaching the problem The 7 Habits of Highly Effective People. can be, that is nothing compared to their everything appear so easy that a new marketing for Northwood University, in the right way. As a first step, we may even He can be contacted at effect on your customers. customer’s transition to your store feels like Texas Campus. He can be contacted at step back and make sure we’ve correctly 866.892.6363, or by e-mail at a no-brainer. Now picture an employee who 866.861.1515, or by e-mail at defined the problem. Then we need to see if, scovey@autosuccessonline.com. Consider what happens when a new makes that process feel difficult. sbrazill@autosuccessonline.com. 0 0 8 9 www.autosuccessonline.com the #1 sales-improvement magazine for the automotive professional
  • 6. marketingsolution ChuckPatton BUILDING A TOP-RATE SERVICE DEPARTMENT In down times, can when they drop off their car. Maybe like we’ve all just customers realize that, or they have more experienced, dealerships often rely on service time, or more people are not working. The departments and fixed operations to ride number of waiting customers used to be about out the storm. I recently sat down with Pat 25 percent. It’s now more than 50 percent, Arnotte, service director of Delaware’s Porter and it’s pretty steady across the board with Automotive Group, an organization that has people I’m talking to. If you want volume shot to the top ranks of service departments coming through your store, you need to bring in the northeast United States. in more of these waiting customers. The more waiting customers you bring in, though, the Chuck Patton: Pat, tell us a little bit harder it is to load up your shop, because about your background, and how you’re constantly pulling techs off of big jobs you came into this industry. to get these customers in and out. It’s just Pat Arnotte: Well, my mother was actually really tough with the waiters. “The biggest thing that I see most dealers a controller in the car business for more than not utilize is their own database. 40 years. From the time I was 12, I washed CP: How have the marketing needs They have names, addresses, phone cars in the summertime until I got a driver’s of service departments changed in numbers, years, makes, models and license and started to deliver parts and work recent months? mileage. In my stores alone, we have my way up the parts side. At 22, I was a parts PA: There have been big changes. Things that information on 22,000 people. manager, and was parts and service director have worked in marketing for years just aren’t What I do with that information by the time I was 26. I’m 43 now, and have working now. We’re trying to come up with been doing it ever since. new and different ideas to drive some traffic is what drives traffic in my store.” through marketing, but there isn’t a “get rich CP: Tell us about your dealership, quick” scheme like there used to be. I used makes, models and mileage. In my stores Porter Automotive Group. to be able to throw out “20 percent off” in a alone, we have information on 22,000 PA: We’re located in Northern Delaware, direct mailer, and my shops just flooded with people. What I do with that information and are part of the Philadelphia market. Our work. Right now, will it drive some traffic? is what drives traffic in my store. I talk to group includes Nissan, Chevrolet, Hyundai, Sure, but not like we were used to. service managers who say, “I bought a Polk Ford and Mitsubishi franchises. Our Nissan List.” Why would you buy something when store is the store I originally took over seven CP: Why do you think that is? you have plenty of information on your years ago. They were No. 6 in a district of PA: The customers want to get in and out own to extract from your own database. 10 stores in customer-paid labor. That store fast and not spend any money. Even when Mine it! You can do model-specific mailers, is now the No. 2 customer-paid dealer in you show them that their brake pads are mileage-specific mailers, “lost-souls” mailers the whole New York region, or the eastern metal to metal, some people just don’t have – whatever you want. It’s information you region, which runs from Maine all the way the money and aren’t buying. I’d like to already own and can easily get. Data mining down to the bottom of the state of Delaware compare the amounts of tickets over $1,000 is what really can make you a fortune if you — that includes all the Philadelphia, New this year to those last year at this time. I think can figure out how to do it. York and Boston stores, and our sales we’re doing a lot more of those tickets than volume is nowhere near what some of the we were before, but what we’re not getting is Next month, we’ll conclude our interview other stores are. We do a very good job with that mid-range, the $300 - $500 maintenance with Pat Arnotte, and talk about the changing retention. jobs. The customers aren’t getting the 30,000 expectations of service managers, some of mile service – they’re just getting the oil the most common mistakes service managers CP: Describe how the changing changed. can make, and some words of advice. market has changed the way service departments do business. CP: What opportunities exist for Chuck Patton is the founder and CEO of PA: One of the craziest things I’m seeing dealers that are easier to realize than Traffic Builders, Inc. He can be contacted right now is the number of customers who they might think? at 866.859.8520, or by e-mail at wait while their vehicles are being serviced. PA: The biggest thing that I see most dealers patton@autosuccessonline.com. When a customer comes in and waits, you not utilize is their own database. They have really can’t sell them as much work as you names, addresses, phone numbers, years, 1 0 www.autosuccessonline.com
  • 7. to the commitment and loyalty of their fans. as a nationwide in-dealership consulting with a customer and ensure every customer gets a Tasca experience. Since our custom CRM The NHRA is known for its open-pit policy, company, to partner with a company that process is spelled out — most of it is automated and all of it is measurable — I have access which allows fans an up-close and personal delivered dealers a proven solution, as well. to every report I need to manage my people. We can continuously improve our consistency, view of the race cars and crews. You can So, we aligned Tasca University with the professionalism and customer loyalty. watch firsthand how mechanics can rebuild same CRM company, VinSolutions, that an engine in no time, or feel the power of a Tasca Automotive now uses to help other AS: Why is it important to measure and track performance? fuel-burning engine when the team test fires dealerships throughout the country combine ES: The best part about our new custom VinSolutions CRM application is that everything is the engines. It’s not unusual for the drivers this custom technology with the people and measurable. The biggest mistake that dealers and managers make is failing to use the reports to be found in their pit areas mingling with processes within automotive dealerships. they have available to them. A few minutes a week, or even once a month, can provide a great the fans and signing autographs. It’s no snapshot of how things are going, who is excelling and where your process needs fine-tuning. wonder that NHRA continues to have one of At Tasca University, we are unlike most We use these numbers to refine and adjust our strategy so we can continue to improve our the most loyal fan bases of any sport. training companies in that we develop a business. Our CRM application has certainly become the primary focus of our operations, and curriculum built around two perspectives. it really encompasses the whole dealership. When it comes down to it, whatever we’re doing Likewise, at Tasca Automotive Group, is working. Our general manager, Carl Tasca Jr., might have said it best: We are excited about their continued growth and success can First, we deal with the procedural and what we have accomplished, but we are most excited about what the future holds. be attributed to the “Tasca Way” of doing mechanical aspects of implementing a business, which focuses on customer CRM initiative within a dealership. Second, Whether in the pits or the showroom floor, whether you are a racing fan or a dealership satisfaction. While the organization has had we look at the implementation of the customer of the Tasca family, you are sure to get a feel of their passion for leveraging some of the highest CSI scores in the nation, technology, people and processes to create incredible industry-leading technology and their genuine loyalty to those individuals Tasca Automotive has been able to increase a success or desired result. Certainly, both who are the sole reason that organizations like the NHRA, Ford Motor Company their sales and CSI further by leveraging play an important role in the overall success and the Tasca Automotive Group continue to thrive. best-in-class customer relationship of any CRM and training program, but they rarely play a role in developing the culture Erik Stuttz is a partner and vice president of Tasca University. He can be management (CRM) technology and contacted at 866.402.0697, or by e-mail at estuttz@autosuccessonline.com. their internal Tasca University consulting necessary to win in the long term. program. These factors have driven their For more information about VinSolutions, contact Sean Stapleton at This is what makes us different at Tasca 866.396.5266, or by e-mail at sstapleton@autosuccessonline.com. people, processes and technology with University. Bob says that everything we measurable results. do at Tasca University is principle based, and that principles don’t change over time We recently sat down with Erik Stuttz, and are the fundamental building blocks partner and vice president of Tasca necessary to establish the culture needed to University, to learn some of the secrets of win in the long term. He reminds us that, their success. at the end of the day, the customer will not “By combining these core values developed remember much about what was done or over the years with best-in-class CRM AutoSuccess: How did you get even said, but they will never forget how we technology, and then couple that with our started leveraging technology to made them feel. Tasca University consulting, we can provide increase CSI and sales? dealers a proven solution that drives proven Erik Stuttz: We researched the best By combining these core values developed results. It’s the ultimate combination CRM providers in the country, looking over the years with best-in-class CRM to partner with a company that had necessary to operate now, and in the future.” technology, and then couple that with a proven automotive track record of our Tasca University consulting, we can delivering results. We wanted a CRM provide dealers a proven solution that that was designed to help our sales and drives proven results. It’s the ultimate service departments maintain an ongoing combination necessary to operate now, and relationship that fits with the Tasca Way. in the future. After researching what the best dealers were doing, we signed up with VinSolutions, a AS: How did you tie together company that we believed could help us VinSolutions’ CRM technology and achieve our goals our way. your own people and processes at Tasca Automotive? AS: How does this new CRM ES: Technology will help maintain technology tie in with your consulting communication with your sales and service company, Tasca University? ownership base, but that is only as good as ES: Our new CRM provider gave us a way the people, process, training and support to maintain ongoing communication with that comes with it. When we launched our What does a hot rod and a drag racing organization have in common with a rural family- our sales and service customers within our new CRM initiative internally within Tasca operated dealership nestled in the quiet timberlands of Cranston, Rhode Island? entire automotive group. We now have a Automotive, we took the entire management seamless, customized program to enable us team off-site for two days to clearly define In a name, it’s “Tasca.” Tasca Automotive Group, a third-generation family business, shares to communicate with our client base, and our mission and vision, and created a step- the expertise and enthusiasm of their vice president, Robert “Bob” Tasca III, with the world’s that is important to us because we don’t do a by-step action plan for getting there. As a largest and loudest auto racing organization, the National Hot Rod Association (NHRA). Bob, ton of advertising. result, we’ve developed a sales and service a hot rod enthusiast and pilot of a Ford Motorcraft Quick Lane Nitro Funny Car, has been model that defines exactly what needs to racing as a professional for two years. In that short period, he has already won two major Our philosophy at the dealership for more be done, how and when it needs to be done national events —The Gator Nationals in March and the Toyo Tires Nationals in August. And than 65 years has been to rely on repeat and and who is accountable, as well as defining don’t let the name fool you — it’s no laughing matter when the funny car that Bob is driving, referral business, and our new CRM system the performance results we need in order to a modified ’09 Shelby Ford Mustang, makes 8,000 HP and accelerates to 310 MPH in just from VinSolutions provides us a better way measure how well we’re doing. over four seconds. to serve our customers. We’ve created sales and service playbooks 1 But the NHRA, Ford Motor Company and Tasca Racing have more in common than just a We wanted Tasca University Consulting, that clearly define, in detail, how we 2 manage the entire life of our relationship vibrant presence. The continued growth and success of these organizations can be attributed the division of Tasca Automotive that serves
  • 8. sales&trainingsolution DalePollak MarkTewart leadershipsolution WHY VELOCITY CHOOSE TO WIN OR CHOOSE MANAGEMENT? TO LOSE For the past several operating to remain profitable. a “must have” for a Velocity dealer. Traffic is slow, Did you allow your expenses and debt to years, I’ve been business is weak, the get too high? Did you allow weak processes making a case for a new method of used The need for such a profound change is The technique that Velocity dealers use has economy stinks and banks aren’t buying. and accept less-than-favorable results? car management that I call “Velocity.” The very difficult for many dealers to embrace. two steps. First, the Velocity dealer takes Repeat this mantra 100 times and see how Did you create an on-going relationship- basis for needing a new strategy for making Instead, many continue to price vehicles in special care to know the individual physical you feel. I promise you that if you replay based marketing program to your existing money in used cars is the fact that the the hopes of capturing the large grosses of qualities of each and every vehicle. Some this message enough, you will believe it as customers, or did you ignore your most Internet has transformed the used car market the past. In reality, this is the worst possible vehicles are special, some ordinary, some absolute truth and become depressed and valuable asset — your customers? Did into an efficient market. strategy to achieve profitability in today’s replaceable and some simply one of a kind. desperate. No matter what circumstances you neglect to install and enforce daily used car marketplace. Such qualities certainly matter in making the are at present, the choice is simple: You education? Have you massively self- In an efficient market, buyers and sellers pricing decision. After the physical qualities choose to win or choose to lose. educated yourself on a daily basis to stay have relatively equal knowledge of choices Once – and only once – a dealer comes to of the vehicles are assessed, the second abreast of all developments in marketing, and alternatives. With the Internet providing terms with the reality that the old front end remaining consideration for knowing which The one single ingredient that is always technology, social media and marketplace shoppers the ability to see every vehicle in grosses of the past will not return, the only vehicles should be priced high and which present in any success story is self- changes? Have you created a marketing the market and how they are priced, why remaining question to be answered is how should be priced low is an understanding of determination. You are always responsible. plan based upon measurable direct response should we believe that we will get lucky the lost profits will be replaced. The obvious their current supply and demand. Vehicles You are responsible for the good and you media that you continually tweak? Do you as often as we used to? Do we believe that answer is that they can only be made up with with high demand and short supply can be are responsible for the bad — it’s just that allow excuses and surround yourself with better negotiating tactics will overcome additional volume. Achieving additional priced with thousands of dollars of mark- simple. If you will allow any excuse for excuse makers? customer’s knowledge of identical choices volume, however, requires a dealer to stop up while vehicles with high supply and failure — no matter how overwhelming the and alternatives? Do we think that blowing pricing every vehicle with a large mark-up in low demand need to be priced aggressively evidence — you have sown the seeds for Success is based upon certain fundamental up more balloons in the showroom or an attempt to recapture the large gross profits for a quick sale and a possible finance more excuses to follow. truths. Install and adhere religiously to those putting a bigger gorilla on the roof will of the past. To do so is like shutting the opportunity. truths without fail and you will succeed. make the difference? Simply stated, the oxygen off to a patient that is in desperate To succeed in good or bad economies Although everyone has setbacks, setbacks business has changed, average front end need. The correct approach is the Velocity Equally important, the Velocity dealer must takes the exact same ingredients, but in are not failures and are only temporary signs grosses will not be what they once were, method of management, which advocates change the negotiating culture of their tougher times it takes more resolve to keep to adjust and plan accordingly. Always ask and we need to change the way we are opening the valves wide by pricing vehicles showroom to support their new pricing producing the successful ingredients. Your yourself, “What’s next?” Keep moving and at or close to their strategy. The salespeople need to recognize success or failure is based upon your beliefs adjusting. Success and failure are ultimately true transaction that an approach more oriented to volume and philosophy. If you do not have a belief a choice. The choice is yours. point. Under than extraordinarily high average gross is system to support success and a personal GET MORE SERVICE BUSINESS these conditions, traffic and sales needed. Therefore, sales managers must fully comprehend that the dealership’s philosophy of self-determination, you are subject to all forces that cause failure. Mark Tewart is the president of Tewart Enterprises. He can be contacted at AND REDUCE COSTS immediately vehicles are priced to sell, not to negotiate. 866.429.6844, or by e-mail at mtewart@autosuccessonline.com. WITH VIDEO E-MAIL! increase and used To this extent, documentation replaces You must create an impenetrable mind car operations negotiation in the showroom experience. — a mind that can sustain all attacks of experience a Information is powerful and the Velocity negativity and philosophies of randomness. “You must create an vitality and vibrancy that had dealer can use their superior knowledge about each and every competitive vehicle in The dirty truth is that most people do not believe in self-determination. Most people impenetrable mind $3500 COMPLETE PACKAGE been long lost. their market to demonstrate to the customer are excuse makers, and have philosophies of — a mind that can In order to that the offered price is truly a great value. luck and a welfare belief system. sustain all attacks Stay in front of your customers successfully The move from a traditional used car model In the United States, which is the richest of negativity and implement the to a “Velocity” model is a journey. Habits country in the world, with resources and philosophies of in a personal and unique way Velocity strategy, and practices that were successful in the past opportunities that can only be imagined by randomness. The dirty dealers must have need to be replaced with new ones. The good people in some parts of the world, people truth is that most people It’s trackable and costs less than direct mail! new technology and information news is that today, many hundreds of dealers are making the Velocity journey. These make excuses everyday as to how they cannot control their own destiny. It is much do not believe in Service specials presented in a video format to make better decisions. dealers have found value in networking with one another. Their shared experiences, easier make excuses than to take control of your own destiny. After all, how can it ever self-determination. Customers just click to print a coupon Specifically, challenges and successes help them navigate be your fault? The economy is so bad, and Most people are excuse they must know and serve to reinforce the rewards. The you certainly don’t control the economy. makers, and have CHECK OUT AMP-MAIL AT A which cars can be growing community of Velocity dealers philosophies of luck and www.advertisingm www.advertisingmarketingpartners.com ti priced high and is enjoying the rich rewards that are still The economy is made up of single micro- a welfare belief system.” reduced slowly available to those that are willing to adopt economies that create a larger macro- if necessary, and the necessary new strategies and tactics. economy. You do control your economy, which vehicles and it starts between your ears. When you need to be listen to the news and hear that things are priced low and Dale Pollak is an author and the founder not good, do you allow that to be your 70 702-5 702-597-1091 reduced quickly of vAuto. He can be contacted at 866.867.9620, or by e-mail at destiny? After all, if you hear it on the news, david@advertising david@advertisingmarketingpartners.com if necessary. it must be true, right? dpollak@autosuccessonline.com. Knowledge of Please contact Lor Feiro or David Moline Lori this difference is Let me ask you a few questions. 1 1 4 5 www.autosuccessonline.com the #1 sales-improvement magazine for the automotive professional