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1. JUNE
2010
Check out
Kim Orr of
eXteresAUTO at
autosuccesspodcast.com

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feature solution
leadership solution
marketing solution
sales & training solution
WHY PEOPLE DON’T RESPOND TO YOUR DIRECT
If You Want to Change the Job Your People Do, Change the Job You
Tips to Get Started — and the Impact It Will Have on Your Dealership
NO INTERNET DEPARTMENT? GOOD FOR YOU
ONLINE REPUTATION MANAGEMENT: NO FAD,
l ti
WHAT WOULD DEMING AND DRUCKER DO?
THREE KEYS FOR GROWING THE FUTURE
DEALERSHIP HARASSMENT CLAIMS —
MAIL AND E-MAIL ADVERTISEMENTS
DISCOVER THE VALUE OF DOLLAR
BUILDING CLIENT RELATIONSHIPS
CALCULATE THE REAL PRICE OF
GENES DRIVE SALES STRATEGY
hi
MATCH TALENT TO POSITIONS
THE DEATH OF TRADITIONAL
ARE YOU A PROFESSIONAL?
HAVE YOU GONE MOBILE?
SALESPEOPLE, PART 3
RESOLUTIONS, PART 5
A TICKING TIME BOMB
YOUR ADVERTISING
l d
IT’S HERE TO STAY
COST AVERAGING
HIre Them to Perform
29
26
24
16
08
30
10
18
32
20
22
19
28
14
34
By DalePollak
KirkManzo
KendallBillman
StephenR.Covey
KimOrr
JockSchowalter
JohnFreund
TomHopkins
BillPhillips
JoeAbraham
SteveBrazill
MarkTewart
ScottJoseph
JimRadogna
JohnBrentlinger
TimDanker
pg 0
pg 0
pg 8
pg3
pg1
pg2
June 2010
jock schowalter mark tewart kim orr

8. leadershipsolution StephenR.Covey
RESOLUTIONS 5
part
When we examine He said that he did, and so I asked him, our security on fashions, possessions or status
anger, hatred, envy, “How are you doing?” He admitted that he symbols may prove to be our undoing. Edwin
jealousy, pride, prejudice or any other was just trying to get by. He had a host of Hubbell Chapin said: “Fashion is the science
negative emotion or passion, we often reasons and excuses for not studying as he of appearances, and it inspires one with the
discover that at their root lies the desire to be ought, for cramming and for taking shortcuts. desire to seem rather than to be.”
accepted, approved and esteemed of others. He came in to see if it was working.
We then seek a shortcut to the top. But the Certainly, we should be interested in the
bottom line is that there is no shortcut to If people play roles and pretend long enough, opinions and perceptions of others so that
lasting success. The law of the harvest still giving in to their vanity and pride, they we might be more effective with them, but
applies, in spite of all the talk of “how to beat will gradually deceive themselves. They we should refuse to accept their opinion as
the system.” will be buffeted by conditions, threatened a fact and then act or react accordingly. To
by circumstances and other people. They overcome the restraining forces of unbridled
Several years ago, a student visited me in my will then fight to maintain their false front. aspiration and ambition, I resolve to dedicate
office when I was a faculty member of the But if they come to accept the truth about my talents and resources to noble purposes
Marriott School of Management at Brigham themselves, following the laws and principles and to provide service to others.
Young University. He asked me how he was of the harvest, they will gradually develop a
doing in my class. After developing some more accurate concept of themselves.
rapport, I confronted him directly: “You didn’t
really come in to find out how you are doing in The effort to be fashionable puts one on a Stephen R. Covey, Ph.D., is co-founder of
FranklinCovey, and is the author of The 7
the class. You came in to find out how I think treadmill that seems to go faster and faster, Habits of Highly Effective People. He can
you are doing. You know how you are doing in almost like chasing a shadow. Appearances be contacted at 866.892.6363, or by e-mail
the class far better than I do, don’t you?” alone will never satisfy; therefore, to build at scovey@autosuccessonline.com.
TEXT WITH
WITH
SUCCESS
Digitize your traditional media with text IDs.
• Inventory on the go! • Text for info
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to inquiries
• Text to join
Websites | Hyper SEO | ILM | Mobile | Texting | SEM
DealerHD.com
Call to setup your demo | 866.222.7712
0
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10. leadershipsolution JockSchowalter
NO INTERNET DEPARTMENT?
GOOD FOR YOU
If you read a magazine the rest of your organization from stepping the employee who helped them. This is in
like this, I’m betting up and taking an active role in using the addition to the normal follow up phone calls,
that you are an individual always looking to powerful tools now available to help dealers letters etc. A sure way to accomplish this is
innovate in order to take your professional better serve the customer and sell more cars. management’s commitment to only hire the
and personal success to the next level. Long caliber of people who are willing and able
before many of your peers, you realized So what are some of the characteristics that to do this; to hire the people who want to
just how critical a well-honed Internet define an “Internet Dealership”? Here’s do this because they know it makes sense.
Department is to your success. You already an easy one. Does the showroom floor’s Unfortunately, many dealers find themselves
knew that today’s modern consumer wanted CRM/ILM system differ from the Internet held hostage by GMs or sales managers
to research their next vehicle on the Internet, Department’s CRM/ILM system? It amazes who refuse to get on board with these new
visit your dealer wWeb site and even initiate me how many dealerships still use two approaches.
the buying process on the Internet. So why different systems to manage the same exact
in the world would I say ditch your Internet customers. If you use two different systems, The motivation to get on board comes with
Department? The answer is simple. get rid of one of them today. Keep the system the realization that the marketplace has
that is wWeb-based and able to effectively changed. Many dealers still desperately cling
You don’t need an “Internet Department” handle Internet communications. Even if to the idea that they are in control of the
if your entire dealership is an “Internet you are under contract for both, you need to selling process. This is why they don’t want
Dealership.” The dealership that does not migrate to one cohesive system to see great to give up anything to the customer until they
realize the fact that nearly every customer improvement in your operations and handling are physically in the store. Frankly, if the
experience will involve some form of of the customer. After all, the Internet dealer’s entire sales strategy is still dependant
communication and marketing via the customer and the showroom customer are on the customer’s physical presence on the
Internet will easily be out-performed by the still the same person. showroom floor, those dealers will see a
dealership that does. Making the Internet shrinking market share to the point that it
its own department only serves to insulate Is every employee who will deal with a will not be able to sustain their operations.
customer expected Many people argue passionately against this
to communicate idea because it is contrary to what they were
with them using always taught, but the trends are undeniable if
Internet-based viewed through an objective and logical lens.
communications?
As a vendor, it just Being able — and willing — to conduct
amazes me when I more of the sales transaction over the
go into a dealership Internet is fast becoming an essential part
and find out that of a successful sales strategy. It’s a fact that
the GM has never customers already conduct their research
even logged online. Now they are pushing to conduct
into their lead- the actual negotiation online. The dealers
management tool. who embrace these customer’s preferences
I suspect many are replacing their fear of online negotiation
dealer principles with the excitement of watching their sales
do not even know increase without giving up gross profit.
their own wWeb
site address. Is your entire dealership willing to do
Every employee business the way that the market wants? If
of an Internet so, you are ahead of the curve. So go ahead
dealership needs … get rid of the Internet Department and
to be well versed transform your organization into an Internet
and expected to Dealership.
communicate
effectively with If you would like to receive a FREE copy
customers via of my book On-line Negotiation is Now
e-mail, chat, text a Reality, please e-mail me at the address
or whatever means below.
the customer
wants. Every Jock Schowalter is the president
showroom guest and founder of DealerPeak.com and
should be followed WideStorm. He can be contacted
up with an e-mail at 866.869.1108, or by e-mail at
jschowalter@autosuccessonline.com.
that is tracked
1 in the CRM by
0
www.autosuccessonline.com

11. WHAT ARE YOUR
ONLINE ADS MISSING?
Inventory Online (IOL) Marketing Suite is a
complete internet merchandising solution.
Call today to see what your ads are missing.
homenetauto.com
salesteam@homenetauto.com
610-738-3313

12. RealDeal.com is the industry’s first live and objective price check on marking vehicle’s prices up from cost has proven to be less effective
pre-owned vehicles. With RealDeal, dealers can show customers how over time. In today’s environment, consumers determine their
their prices compare against the prices of similarly equipped vehicles shopping destinations, in large part, based on identically equipped
for sale, allowing customers to feel confident in their purchase price competing vehicles on the Internet. If your price isn’t in the ballpark,
before they sign on the dotted line. Today, dealerships using RealDeal then you’re not likely to see or hear from the prospective buyer.
are able to limit the amount of the discount between the asking and the
selling price to an average of a few hundred dollars. Often vehicles are Does this mean that all vehicles should not be priced high for the
transacted at the original asking price or with just a concession of floor first 30 days? Do they all need to be priced low from their inception?
mats or a tank of gas. Every time a RealDeal report is presented, both The answer is “no,” but they all must be priced based on the dealer’s
the customer and sales representative have the experience of knowing knowledge. The dealer must know which ones should be priced high,
that the dealership prices their vehicles on facts and fairness. Closing and dropped slowly if necessary, and which ones should be priced
ratios and gross profits rise as the new system replaces negotiation low from the start, with an awareness to drop them fast and rapidly.
with compelling and credible documentation. Understanding which vehicles can be priced high versus the ones that
should be priced low requires a two-step process.
Why is there such a need for RealDeal? Because the used vehicle
industry has experienced significant changes in the last seven years - First, the individual pricing the vehicle should know the physical and
never has there been as much change in as short of a period of time. aesthetic quality of the vehicle. Because there is still an emotional
As an industry, we are learning the used car business all over again. aspect to the car shopping process, understanding the unique appeal
Just about every traditional practice is being replaced by new and more or lack thereof for the vehicle in question is essential. With a firm
effective procedures. One of the greatest challenges that has occurred understanding of the vehicle’s appeal in mind, the second step is to
is the industry’s recognition that a vehicle needs to be priced to sell determine the odds of a fast sale and high gross. This assessment is
rather than to negotiate. Simply stated, if a vehicle’s asking price isn’t most rationally based on the relationship of the vehicle’s supply and
justifiable, it’s not likely to produce a demand in the market at that very moment. Vehicles of high supply
potential customer. and low demand are less likely to bring a fast sale and high gross than
a vehicle of high demand and short supply.
As dealers have come to this
enlightened recognition, they If a vehicle is truly special to the eye and has high demand with short
have experienced a great supply, then it should be priced high against competing vehicles with
deal of difficulty managing a deliberate patience. Conversely, a vehicle of ordinary appeal with
profitability. It is essential to high supply and low demand should be priced extremely low among
examine the rules of proper its competitors from the onset with a willingness to adjust pricing
pricing and the corresponding frequently. This two-step process represents the best practice for
implication for the selling maximizing the return of vehicle inventory investment.
process.
Problems of Proper Pricing
Rules for Proper Pricing When a vehicle is priced properly, consumers are naturally attracted
Historically, dealers have priced through the Internet shopping process. Unfortunately, when buyers
vehicles based on a markup from appear, they seldom, if ever, announce their arrival as a result of the
their cost, usually $3,000 - $5,000 vehicle’s proper pricing; rather, the opposite usually occurs. Despite
for the first 30 days or so. If the the fact that shoppers may have traveled a great distance to see the
vehicle does not sell after an initial vehicle in question, they inevitably still expect a further discount.
period of time, then the price is Accordingly, sales representatives have been trained to anticipate
gradually reduced until further price discount expectations. What generally ensues is a
it does sell. The negotiation process that results in further discount, only sometimes
method of results in a sale.
The problem with this approach is that once a vehicle has been priced
properly, there is generally little room to negotiate and still have
an acceptable profit. The negotiation with the consumer and sales
representative is the self-motivated shopper and the negotiating sales
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13. representative engaged in silent collusion against the interest of the C: No, probably not.
dealership. It is easy to understand the motivations of the consumer, but
those of the sales representative are more subtle and less understood. SP: OK…You’ll notice that the next vehicle is yellow in color and
83 miles away. Would you consider a yellow vehicle, or one that
Automobile salespeople have been conditioned and trained over is different than the silver or gray that you’ve requested?
decades to satisfy the shopper’s expectations of price with negotiation. C: Uh…No.
Today’s sales representatives have very few strategies or skills
designed to hold the line on price objections. Although their sales SP: OK, then, let’s take a look at the third-lowest price, the one right
compensation programs incentivise them to hold gross, the greater below our price. You can see that this one is being offered by
expectations of management relate to unit production. The desire an independent dealer and doesn’t have an available vehicle
of the salesperson to deliver vehicles first, and hold for gross as a history report. Would you be willing to buy a vehicle from an
secondary objective, along with the shopper’s insistence on a further independent dealer without the security of a vehicle history report
discount creates the perfect situation for poor profitability. or the assurances of a well-established dealer such as ourselves?
C: Well, I’d rather buy the car from you.
Documentation Replaces Negotiation
Without fail, every prospect who is interested in purchasing a vehicle SP: I appreciate that. Can you appreciate the fact that ours is just
from a dealer asks “how much discount.” This is the initial process slightly higher than the one offered by an independent dealer
known as negotiation. It is a process that results in further price and it comes with all of our assurances? Based on this analysis,
concession and often emotional contention. can we earn your business today?
Predictably, shoppers regale sales representatives with stories about Regardless of whether the customer says “OK,” or asks for a further
other vehicles that can be purchased for less money. Sometimes these discount, can you see the benefit by having changed the dynamic of
vehicles don’t exist and/or often lack sufficient similarity in condition, the conversation? And can you imagine the power of a product such
mileage or equipment. In almost all cases, the existence of such as RealDeal.com, the first objective pre-owned price check product
vehicles is accepted and results in further discount. for dealers, which is specifically designed to aid the salesperson by
providing the necessary documentation?
If the customer’s behavior of insisting on further discounts based on
the assumed existence of competition is predictable, is there anything What the dialog above demonstrates is the fact that using
that a dealership can do to level the playing field and maintain its gross documentation in place of negotiation removes the shopper’s ability
profit? Fortunately, the answer is “yes.” to tell fictional or exaggerated stories to justify their insistence on an
additional discount. This levels the playing
Instead of waiting for the customer to ask for a discount and then field and allows the dealership to “justify”
whipsawing the salesperson with questionable competition, the sales and the customer to “validate” the price
representative should open the conversation with the statement, “Let me in a collaborative non-confrontational
show you what our dealership has done for you.” Rather than assuming manner. Information is powerful and it is
the defensive role, the sales representative is taking the offense and a shame if the dealership possesses such
changing the dynamics of the discussion that will follow. Consider the information for the purpose of pricing
following alternative exchange between salesperson and customer: the vehicle properly, but can’t leverage
it properly to allow sellers and buyers to
SP: Now that you’ve decided that this vehicle is right for you, let mutually arrive at a fair selling price.
me show you what our dealership has done for you. As you can
see, this is a list of identical vehicles market (present copy of Dale Pollak is the founder of vAuto. He
competitive set). can be contacted at 866.623.5329, or by
e-mail at dpollak@autosuccessonline.com.
C: Huh?
SP: That’s right, you can see that our dealership has very
sophisticated tools that allows us to know the identity and
description of every similar
competing vehicle. Further, you
can see here that while our vehicle
is not the lowest priced; it is the
fourth-lowest price out of the
total set of 14. Would you like to
see more about the lower priced
competing vehicles?
C: Uh…sure.
SP: Great, you’ll see here that the
No. 1-lowest priced vehicle has
60,000 more miles on the odometer
than ours does. In an effort to
save money, would you consider a
vehicle with more mileage?

14. marketingsolution TimDanker
CALCULATE THE REAL PRICE
OF YOUR ADVERTISING
So many dealers and
so few buyers.
The competition to get people into your
dealership before the others is intense.
You have to get the word out about your
dealership, but there are so many off ramps
on the advertising freeway. Therefore, the
question is: Which method has the best
impact? Which ramp can reach a prospect to
invite them in personally? There is only one
that can accurately do this: direct marketing.
Please notice I do not call it “direct mail,”
because it is more than just “junk mail”;
most dealers, however, still think of it that
way, and use it that way. While publicizing
the “giant” event with the “giant” mail piece The biggest challenge for direct marketing tool and make the offer personal to them.
can be successful and sell cars, do they help is getting your message to the kitchen They will read it and use if they are in the
you develop your market? Are they helping counter and away from the junk mail pile. market for a car, or save it for a later date.
your “brand,” or image, in the community? If it sits on the counter a week or two, it’s
Dealers need to think about this in between OK because it is in the right place. The Advertisers and marketers have to keep up
the big sales. effectiveness of a particular piece, however, with the changing market. A few years ago
might not be immediately known. Some I was involved with a television show about
The trick is to put a pencil to the true costs, prospects are interested in buying in a few cars, and had a friend who was something of
and to look at the money spent that might not months, and they might hold the right piece a mentor to me. He always said that “it’s not
be considered from a short-term viewpoint. until that time. If that is the case, do you as much about the car as the experience it
There are costs to the “free” attractions (food, know which piece brought that customer in? gives you.” Remember there are many buyers
kids’ bouncy castles, prizes, giveaways, etc.) While I have always known that people hold who want the “cute red car”; the question is,
that have to be considered. While your event the letters, recent tracking has shown me does your marketing reflect that?
may draw a crowd, after the food is eaten and some very surprising numbers.
the kids have had a ball, how many of those Today we have the Internet, e-mail, social
400 hundred people who showed up actually I have a client in the Midwest that just networks and traditional media. These are
want a car? How many apps got sent in only received six calls the last week of April from all on ramps on the marketing freeway. If
to be returned by the bank after you pay the a campaign that was mailed in January. It is you use direct marketing, at its full potential
processing fee? The good news is that cars still selling cars. The campaign has been paid —and commit to it — you will be able to
are sold and big events are often successful. for, and the cost per car has all been figured market in ways the others simply cannot.
However, when I think about this, there is — or has it? This letter is still selling cars, Some see great results right away, and some
an old question that comes to mind: Are you and has been for more than three months. may not, (or maybe they just don’t realize it).
working hard or working smart? The problem is most dealers do not know it. Always remember test, track and tweak, and
Tracking is key. The longer the ad is working you may be surprised with what you find.
If you approach that same ramp of that for you, the more it drives the cost per car
freeway thinking about marketing instead of down over time. Your ad dollars are far too
short-term benefit, you may see a difference important to be spent on media that is not
over time. Personalizing your advertising tracked.
can help you find real buyers. This is true Tim Danker is the director of sales and
Technology has changed direct marketing product development for Ideal Direct Ad
for both prime and sub-prime. We all know
so you can better focus and reach your Group. He can be contacted a
the needs of the sub-prime customer are 866.515.6516, or by e-mail at
more challenging, but the benefits are huge. targeted market. You have the name of every tdanker@autosuccessonline.com.
The winners are ones who really work to get person you are marketing to; no other form
the reward. of advertising can do this. Use this powerful
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www.autosuccessonline.com

16. marketingsolution KendallBillman
HAVE YOU
GONE MOBILE?
We have been fielding site provider is up-to-date with a mobile
a lot of questions Web site platform? I have put together a
lately about mobile CRM and mobile Web few features that should be included on your
site solutions. CRMs can run on your mobile mobile Web site:
phone and, with this ability, you are now able
to stay in closer touch with the day to day of Mobile Site Feature Check List
your dealership, but what about the Web site? 1. Do you have the ability to customize
Thanks to advancements of mobile (smart) your mobile platform?
phones, customers do not need to wait until
they get to a computer to shop your Web site, 2. Your Web site provider should be
the customer can shop your Web site from building your mobile platform for each
their phone immediately. platform. For example Apple’s iPhone
and Google’s Android have specific user
Have you reviewed your dealership Web site styles. The platforms allow for enhanced
on your mobile device? Have you reviewed user experience.
your Web site from all the smart phones
(iPhone, Blackberry, Droid, et al)? A mobile- 3. Is your Web site provider building your
enabled Web site gives your salespeople a mobile platform or are they outsourcing
huge advantage over your competitors. If it to a third-party company?
your Web site has a good mobile platform,
your salespeople can promote your current 4. When looking at inventory, do they offer
inventory 24 hours a day, seven days a week. swiping and zooming into photos? This
is called “cover flow.”
Let’s say your sales team member is at an
event, for example, and a prospect says they 5. A nice addition for branding is to have
are looking for a certain model. Instead of your dealer splash image loaded when
telling them you will follow up the next Web site is loading. This adds a nice
business day, just go to your Web site, show iPhone quality.
the customer the models, zoom in on the
pictures and with the mobile CRM they can 6. Do they provide a dealer icon that the
apply for immediate credit. Your prospect consumer can save for bookmarking?
can start the purchase process without This is great for scheduling service.
stepping on your lot or shopping around on a
computer. 7. Look at how you can move around on
your mobile site. A fast Ajax Web site,
Recently Apple released the iPad. Apple for example, allows for very smooth and not available on a mobile phone, the
is selling more than 200,000 iPads per quick mobile experience with limited directions map can automatically be
week and they do not see it slowing down. page posting. This is so it does not slow presented as a default.
The iPad is a great tool for you and your down the user’s experience.
salespeople. This product gives them the 10. Mobile analytics tracking codes are
ability to carry their desk wherever they go. 8. Integrated phone and SMS calls to action different and you need to make sure
It also benefits your customer. Imagine being allow the user to instantly make a call or they provide detailed analytics specific
able to bring the deal to the vehicle your send SMS without typing in their phone to your mobile visitors and their
prospect is looking at right on the lot. The number. behaviors.
prospect could test drive the vehicle and pen
Kendall Billman is the director of interactive
the deal in the vehicle of their choice! 9. Integrated Google Maps allows for marketing for VinSolutions. He can be
the usage of GPS or location-based contacted at 866.892.1447, or by e-mail at
Now, how do you determine if your Web directions to the dealership. If GPS is kbillman@autosuccessonline.com.
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18. TomHopkins
sales&trainingsolution
BUILDING
CLIENT
RELATIONSHIPS
When it comes be: “My name is Balthazar Otis Buckworth,
to building long- but please just call me by my initials,
term relationships with clients, it’s very B.O.B. Everyone does.”
similar to building long-term friendships.
In kindergarten, children are encouraged When your clients give you their names,
to make new friends by talking with others, use them the way they’re given. Never
inviting them to play and being “nice” to shorten “Phillip” to “Phil” without his consent.
them. They often hear these words: “To have However, if you hear his spouse call him
a friend, you have to be a friend.” In many “Phil” you might ask permission to do the
business situations, clients often become same. You want to get on the most congenial
more than clients. They become friends; not level possible with everyone you meet.
necessarily the kind you would invite to non-
business gatherings, but people you truly care Use your clients’ names in conversation
about and who enjoy hearing from you. during the sales process. Inquire about
the use of the vehicle. Does the client have
There is a feature in a local area newspaper young children or a teenage driver? If so,
where readers are invited to review their safety will be an important issue to discuss
favorite non-franchise restaurant. The articles with them. Do they have a cabin in the woods
are wonderful publicity for the restaurants. where some off-road driving is involved?
One of the key elements I see repeated over Or, do they travel for business and need
and over again is that patrons know the “highway” tires? All of these answers help
names of the owners, hosts and/or servers. you lead them to the best choice for them.
And, many of the restaurant workers know Keeping a record of the answers will help
something about them as well. They know if you build long-term relationships.
the guests prefer coffee or tea with breakfast.
They may even remember their favorite meal, If you know Bob and Sally expressed interest
asking if they want “the usual.” in a particular feature on their last vehicle,
plan to contact them when you see an upgrade
Put yourself in the seats of those guests for in it or see it included on a different type of
a moment. How would it make you feel to vehicle. Bob might like trucks. Sally might
have your particular favorites automatically like sports cars. But they both may enjoy a
placed before you without having to explain built-in GPS system. If it wasn’t available
your preferences? It would make you feel at on their last vehicle, the time to contact
home or as if you’re at the home of a good them is when you learn that it is. With some
friend — someone who knows you well and clients, the focus isn’t on the vehicle. It’s on
wants you to have what you want. They want the options. When I was in real estate, many
you to be happy. That type of response is the people bought homes because of the corner
ideal when it comes to serving your clients’ lot or the school district or the swimming
needs and it can be created no matter what pool. Those features were more important
your product or service is. than the layout of the home itself.
You may think you’re in the business of Always take good notes when you’re with
selling automotive services or maintenance, clients. Enter the information into your client
but you’re not. You are in the people database. That information is used to make
business, and learning to make people feel contacts and to start conversations with
important and cared about will help you clients after the initial sale.
make both the initial sale and long-term sales
over the course of time. People like to do business with people who
are like them, who demonstrate that they
Introduce yourself to each client and care about them beyond making the sale and
give your name. Try giving them your who keep them in mind when something new
formal name, then what they should call arises. That type of treatment makes them feel
you. For example: “My name is Thomas important. They come to rely on businesses
Johnson. But, please call me Tom.” This and salespeople they know they can trust to
statement does two things: It presents you have their needs and interests at heart.
professionally, and you help them relax
with telling them to use your less-formal
World-renowned master sales trainer Tom
name. If you have an unusual name or one Hopkins is the chairman of Tom Hopkins
that’s challenging to pronounce, consider International. He can be contacted at
going by something less-formal and easier 866.347.6148, or by e mail at
e-mail
to remember (and say) for your clients’ thopkins@autosuccessonline.com.
sake. Do nothing that could make them feel
1 uncomfortable. An example of this might
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19. leadershipsolution JimRadogna
DEALERSHIP
HARASSMENT CLAIMS —
A TICKING TIME BOMB
It seems like there mean any harm, this type of behavior can rise
are an inordinate to the level of harassment. As far as the law
amount of news stories about harassment is concerned, harassment depends on how
and discrimination lawsuits against auto the conduct was received, not on the intent.
dealers lately. Just Google “auto dealer Employees who receive harassment training
harassment” to get an idea of how common are more likely to understand that there are
these types of lawsuits are in our industry. boundaries that must be observed in the
You will find many cases of not only sexual workplace and more importantly, realize that
harassment, but also racial harassment, age there can be serious personal consequences
discrimination, etc. The amounts of fines and for harassment.
damages that dealers have been assessed are
eye-popping. Some states, such as California, require
harassment prevention training for
In a statement about a case against a supervisors. That’s great, but what about
dealership, U.S. Equal Employment the non-supervisory employees? There
Opportunity Commission (EEOC) regional is often a great amount of down-time at a
attorney John Hendrickson said that it dealership, and employees may get bored
was “amazing that at a time when the auto and tend to “goof around.” Is it harmless
industry is struggling for survival and horseplay or perhaps behavior that crosses
women exercise so much influence in the the line? Are supervisors able to monitor
marketplace that anyone would in engage their subordinates’ behavior at all times?
in sexual harassment or show contempt for Are supervisors setting a proper example?
female customers.” Supervisors can only go so far in preventing
harassment. The responsibility lies with
EEOC Acting Chairman Stuart J. Ishimaru every employee.
also said in a statement that “sexual
harassment and sex discrimination against Most companies have an anti-harassment
women in traditionally male-dominated policy that all employees must sign, although
industries, such as the auto industry, are still I would venture to guess that the majority
unfortunate realities.” of people don’t read it or understand it.
Having a policy in place and hanging
Harassing conduct is sometimes so posters is simply not enough protection for a
commonplace that we often don’t recognize dealership. The US Supreme Court, in two
the behavior as being inappropriate. Many separate cases, decided that employers may
people who have been around auto dealerships be able to avoid liability in a harassment
for any length of time may not be very claim if they (1) use reasonable care in
surprised that this type of behavior exists, establishing an anti-harassment policy
while others may feel that these are mostly including a complaint procedure and training;
frivolous lawsuits designed to extort money AND (2) the harassment victim unreasonably
from dealers. Perhaps the accused were “just fails to take advantage of the policy’s
kidding around” and meant no harm? safeguards. So, if a harassment victim is
trained on exactly what to do in the case
No matter what, the dealer loses. Any of harassment (like who to report it to, and
lawsuit is a bad lawsuit. Besides the cost so forth) and fails to do so, the dealer will
of defending these claims, there will likely probably be in a good position to defend
be immeasurable damage to a company’s themselves.
reputation. What owner wants the public to
be exposed to media stories accusing their It makes sense to train all dealership
dealership of employing harassers or racists? employees in harassment prevention.
Perhaps then the media, the EEOC and
To help avoid these types of claims, employees looking for an easy target to sue,
dealership employees should be trained can go pick on somebody else.
in harassment prevention. Staff members
(especially supervisors) need to understand
that it is simply not okay to participate in Jim Radogna is president of Dealer
harassing or discriminatory behavior in Compliance Consultants, Inc. He can be
today’s world, no matter what the intention. contacted at 866.704.8657, or by e-mail at
What many people don’t realize is that even jradogna@autosuccessonline.com.
if you’re just “kidding around” and don’t 1
9
th
the #1 sales-improvement magazine for the automotive professional
l i t

20. leadershipsolution JoeAbraham
GENES DRIVE
SALES STRATEGY
“Maybe It’s strengths, weaknesses and tendencies. Being understand this breakthrough concept in
Just Me!” aware of that DNA will allow you to sit entrepreneurship and help you understand
I am sure you have found yourself in the down yourself (or with an expert) to map out the strengths and weaknesses of each of the
same position I have. Arms thrown up in the a game plan that is perfectly suited for you management team members. Then, have your
air questioning why the competitor next door and your company. It will also allow you to team members take a different quiz (simply
pulled off a feat you couldn’t. What is really recognize when you are in your sweet spot contact me for a copy of that quiz). You’ll
frustrating is when it appears as though they of giftedness and when you are in the danger be able to look at the results of both sets of
spent half the energy getting it done. Maybe zone of trying to be someone you are not. quizzes and instantly identify areas where
it was a marketing campaign or a financing you can optimize your team dynamics.
relationship. It could have been a sales Why Entrepreneurial DNA
strategy or a hiring decision. The bottom line is A BIG Deal 2. Design — The design step is all
is that they did it better and/or faster than you If you are the dealership owner trying to do about taking what you learned in the
could have. When things like that happen, you things other dealers are doing (who happen entrepreneurial DNA quiz and building a
find yourself saying, “maybe it’s just me.” to have a different entrepreneurial DNA), fresh strategic plan built around who you are
you’re going to fall flat on your face, waste as a team. If you have a capable HR manager
Maybe It’s Just Your Breed a ton of cash and be very frustrated with on staff, they can look at the results and put
You probably have some history with dogs. yourself and your staff. a go-forward plan together. If you don’t have
You either have, or grew up with one, or the talent in-house to do it, we’ll be glad to
saw your neighbor with one. When you see If you are a sales manager trying to be like help you get it done. The goal of the design
a dog, you instantly recognize it as a dog. the “other” sales managers even though that’s step is to come out with a clear action plan
Because dogs are dogs, right? Generally, they not who you really are, it isn’t going to work to dominate your marketplace using the best
have ears and good hearing, a nose with an out for you — no matter how hard you try. skills and talents of the team.
acute sense of smell, four legs, and fur. They
run, they play, they bark and they leave land If you are salesperson who has been told to 3. Deploy — This is the easy step. It’s just
mines on the lawn. “do what Jim, the top salesperson, does,” about executing the strategic plan you built
that may be the worst possible advice your in step 2. The best part is that your entire
Some breeds though, are specifically bred manager could ever give you. (Sorry to team will be energized to implement the
based on what God gifted them to do. all the managers who just tell people to be plan because for once, the plan will be built
Think about the various differences in these someone they are not — that’s plain silly). around them (rather than some plan that got
breeds. Imagine being the beagle taking on handed to them by management). I have seen
a greyhound in a sprint to the finish line. A company that discovers it’s entrepreneurial some record-shattering results happen when
Imagine being a golden retriever going head- DNA (from the owner down to the guy a supposedly “weak” team of people got
to-head in a job interview for “scary guard sweeping the floors at night) has a unique together and built a strategic plan that was
dog” against a pit bull. opportunity to create massive synergy and a optimized for who they were.
significant marketplace advantage. Imagine if
Even playing field? I don’t think so. every person on your team knew the other’s Think of every inspirational movie you have
weaknesses and was working in concert seen from Rudy to 300, and you’ll find a
Entrepreneurs are like dogs. We share a with that by leveraging their complimentary team of unlikely people working together
common species, but we come in different strengths. For an organization that is to leverage each other’s strengths and
breeds. Some of us are purebred and carry a committed to excellence and a winning weaknesses to accomplish the seemingly
distinct set of characteristics and gifts. Others corporate culture, this is a very important impossible.
of us are mutts who have a blend of various exercise to go through.
strengths and weaknesses. I wish the same for your dealership team.
Here are three simple steps to get the job
You Have an Entrepreneurial done:
DNA That Drives You 1. Discover — The first step is for the
Joe Abraham is the founder of the BOSI
Whether you are the dealership owner, GM, owner and management team to discover Performance Institute. You can contact
sales manager or sales person, there is an their entrepreneurial DNA. You can do that him at 866.461.5751, or by e-mail at
entrepreneurial DNA that drives you. You for free online at bosiperformance.com/ jabraham@autosuccessonline.com.
have a unique set of traits pre-built into quiz. Upon completing the quiz, you can
you. That DNA telegraphs your potential download free materials that will help you
2
0
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22. leadershipsolution SteveBrazill
THREE KEYS FOR
GROWING THE FUTURE
Vehicle sales are in the downturn and in the process discovered at this time. Your vendors must be considered
rebounding and new ways to efficiently manage product. partners in your effort to build and maintain
dealerships that hunkered down during the Those lessons can be forgotten when sales a highly productive and efficient operation.
recession are now growing their operations recover. Inventories must grow to support Selecting the wrong vendors can sabotage
again. Let’s review three key opportunities to higher sales levels, but prudent managers will your efforts as surely as selecting the wrong
grow in ways that can make a store leaner and manage that growth carefully with a steady employees. For that reason, you must also be
more productive. eye on days supply and turn rates. Inventories quick to communicate your expectations to
eat working capital and credit, resources that each vendor, monitor for performance against
Your People tend to be finite and costly. standards and make changes when vendors
Your personnel counts will grow this year fail to provide the level of performance you
as sales rebound. You can invest the time Your Vendors expect.
to carefully choose the right people now or The recession has taken a toll on businesses
you can spend even more time in the future across the board and your vendors have Decisions you have made in the past several
putting out fires started by poor choices. probably gone through changes of their own. years likely determined your dealership’s
As part of the selection process, be explicit Some have probably adapted by becoming ability to survive in a hazardous environment.
about your expectations. If you expect your leaner and more productive, changes that The decisions you make this year will
salespeople to sell 12 cars each month and can create benefits for you. Other vendors affect the degree to which your dealership
stay current on all assigned training, tell your may have lost some of the advantages that participates in the coming return to prosperity.
prospective employees before you hire them. caused you to select them over competitors
If a prospective employee flinches at your at some point in the past. At the same time, Steve Brazill is the chair of automotive
expectations, don’t you want to know that some vendors who were not the best choice marketing for Northwood University,
before you offer a position? in the past may have weathered the storm Texas Campus. He can be contacted at
866.861.1515, or by e-mail at
better than their peers and may be able to sbrazill@autosuccessonline.com.
Your Inventories offer superior value today. Your vendor list
Many dealers aggressively reduced inventories should be reviewed regularly, but especially
Time to rethink
auto transportation
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