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8. sts ms ls fis sf
DavidKain
leadership solution
A Simple Formula for Internet Success
With all the Internet 1. Combination Internet and floor sales Consider your own experience when you
products and services person – works fine in a small operation use the Internet. Was it easy? Was it quick?
available for dealers with few leads but the tendency is to favor Did you feel confident? When you interacted
in the market today, the floor traffic and not offer the best with the agents, were they knowledgeable
one could assume service to the Internet customer, which and able to provide you with the information
success is really all could cause them to go elsewhere. you needed? Was the experience something
about choosing the right one. Even the best you want to tell your friends about? If
product or service is dependent on the focus 2. Internet sales person or Internet sales you can build your process around these
and commitment of the dealership. I wanted manager – the most common approach questions, you will undoubtedly be moving
to use this column to line out a formula that used in dealerships today. The benefit is in the right direction.
will consistently deliver results when used full-time focus on the Internet department
by hard working and smart dealers. without taking floor ups, and lead handling D. Marketing and lead generating
is consistent. This is difficult to scale, and Once you are set on the structure personnel
1. Decide who is ultimately responsible turnover stops productivity immediately. and process, it is time to generate some
This is probably the most important step. leads. There are essentially four sources:
The Internet is still widely misunderstood as 3. Internet with a call center – this is a
a marketing tool for automobile dealers, and growing trend and born from the BDC 1. Lead aggregators or providers (Dealix,
it needs an internal champion to shepherd (Business Development Center) strategy Autobytel, AutoUSA, etc.) – quickest
it through the formative stages. Preferably of “call” specialists setting appointments source with large volume opportunity
this is the general manager or general sales and turning them over to Internet “sales”
manager at the dealership because they have specialists. This is the most scaleable 2. Online classifieds (AutoTrader.com,
to weave the marketing and Internet sales but requires a very effective manager to Cars.com, etc.) – primarily generate
process into the existing marketing and sales ensure consistent results. phone calls for used vehicles
framework.
3. Manufacturer leads (FordDirect.com,
2. Outline your Internet marketing and Consider hiring people GMBuyPower, etc.) – solid leads and
sales vision typically excellent value
With the cost of operating an Internet who are sales oriented
department, it is best to line out your vision who can warm up 4. Dealer Web site – best closing rate but
and goals. Do you want to increase sales and
market share? Do you want to grow owner
people fast, know the volumes are typically low
loyalty? Do you want to be number one in product and processes A. Tools
close rate, sales or profits? Do you want and greet each day The basics: Dedicated PCs for each Internet
to be known as the best Internet retailer
in your town, region or nation? Whatever thinking of the department employee, high-speed Internet
connection and a lead management tool.
your vision is, I recommend that it be more opportunities to sell Without these in place and being utilized
than “just sell more cars and trucks.” Think a vehicle. effectively you will never reach your full
of the tale of the three bricklayers – when potential.
asked what they were doing one said “laying
a brick,” the next said “building another B. Personnel B. Metrics
wall,” while the third one said “building a Depending on your structure, the next You must measure the following to keep on
cathedral.” Your Internet team should know decision is what type of personnel is required track.
what they are building. and how should they be compensated?
Consider hiring people who are sales Weekly: leads, appointments kept, sales and
3. Line out your strategy oriented who can warm up people fast, know gross.
Your strategy is the heavy lifting and the product and processes and greet each day Monthly: all above plus measure the lead
requires you to settle on what steps are thinking of the opportunities to sell a vehicle. sources by close rate, cost per lead, cost per
necessary to achieve your vision. The This is a tough environment and requires vehicle sold and return on investment.
elements of an effective Internet strategy optimists who can handle rejection and get
include the following items: back up and keep asking for the appointment It’s not simple but if you follow the plan and
and the sale. Compensation depends on the adjust to the challenges you can achieve your
A. Structure structure but I recommend a pay plan that Internet vision.
When deciding on the right structure, think focuses on “kept appointments” and the
of what will allow for the best consistency actual vehicle sale.
David Kain is the automotive Internet
and scalability? There are many types of training specialist at Kain Automotive Inc.
structures used by dealerships today and, for C. Process He can be contacted at 800.385.0095, or
the most part, all of them can deliver good When deciding on the lead handling process, by e-mail at dkain@autosuccess.biz, or
results. The most common structures are: it is important to think like the customer. visit www.kainautomotive.com.
www.autosuccess.biz
8
9. sts ms ls fis sf
TonyDupaquier
f&i solution
Always Ensure Compliance
To ensure compliance, the product must be sold on its own. These are two areas that should save you,
a business manager not burn you.
must disclose the base The menu is a great way to ensure legal
payment and how compliance and it must be correct and Tony Dupaquier is the director of
that base payment F&I training for American Financial &
consistent. If there is ever a legal issue in the Automotive Services Inc. He can be
was calculated. What business office, the investigators will look at contacted at 866.856.6754, or by e-mail at
determines a base payment is the amount the pattern of behavior and the paperwork. tdupaquier@autosuccess.biz.
financed, the APR and the term used. The
customer must also know that it is possible
to take delivery of the vehicle with the
base payment. Utilizing specific wording
ensures this is disclosed properly: “Mr/
Mrs Customer, this is the amount you are
financing today, and your base payment is
XX,XXX, for XX months, at XX APR, and
that will deliver your new vehicle today.”
It is imperative to explain the base payment
to each customer. If the customer is
unaware of what the base payment is, then
the payment was “packed,” a practice that Maximize your buying power and reduce
has been deemed unfair and deceptive in
many states. Even if a state does not have a
advertising budget.
specific packing law, many attorney generals
are utilizing unfair and deceptive trade
You sell cars when you’re face to face with
practice laws to prosecute and fine dealers prospects not buying media.
and business managers.
We customize the campaign, work with
The menu is a great the media and you sell the cars.
way to ensure legal
compliance and it “With High Impact Media handling our advertising and
must be correct and coordinating our promotion we sold 69 cars in one weekend, 34 on
consistent. Saturday!”
Ramey Chevrolet, Tazewell, VA
The customer must also know that the
optional products are not required to secure
“High Impact Media stresses consistent, positive advertising. The
financing. A recommended solution is to last big promotion they planned we had people lined up at the door
have the customer initial the base payment so waiting for the dealership to open.”
there is no miscommunication of this fact. Magic City Ford, Roanoke, VA
Another major concern is that the product “Not only did we sell a lot of cars, our grosses were fantastic!”
disclosed on the menu is the same product
the customer receives. If a business manager
Ramey Automotive, Richlands, VA
discloses a 5-year, 75,000-mile exclusionary
policy with a $100 deductible, then the Call today and one of our consultants can show
customer must receive a contract with the
exact same conditions.
you how we will reduce your advertising cost.
Bundling the products is another way of Only one dealership per DMA
packing. Bundling is when a product is
sold in conjunction with another product.
The product that gets bundled the most
is maintenance agreements. If a business
866.815.2340
manager sells maintenance agreements, then
june 2005
9
10. sts ms ls fis sf
ScottJoseph
marketing solution
Do You Care
How often do you Why not handle the call like this: “Thank You see, “with someone” doesn’t evoke the
preach that the little you for calling us, John’s not here right same negative vibes as “he’s in a meeting.”
things make a huge now… Then add… maybe in the meantime Being with someone is OK, being in a
difference to the way there’s someway I can help.” meeting is never more important that a
you and your dealership customer. The good news is you can always
are perceived? My Check the change in perception there. It be with yourself! I’ll explain in a moment.
guess is most dealers or business owners may seem small but small things can have a
probably preach it every day. huge impact on results. Instead of the caller “May I ask who’s calling?”
talking with an apologetic little sole who’s YOU WILL NEVER, EVER HEAR THIS
The reality is that customers decide not simply giving out information, the caller’s INTERROGATION OF CALLERS AT
to buy and leave – they don’t bother to now talking with someone who is prepared J&L MARKETING FROM THIS DAY
schedule an appointment when talking with to help. FORWARD. Why? Because it doesn’t
you on the phone – they decide to stop doing matter who’s on the line. Given that we’re
business with you – for reasons other than not “with someone”, you have every right
price or product.
You know what; to speak with the person you called. So why
should we interrogate you?
Almost 70 percent of the time, customers the simple
truth is that
take their business elsewhere because of The fact you are a customer or a potential
perceived indifference. The fact is most customer is enough. There is no way you
customers leave because they think you do
not care. Do you? Clearly you do, it’s just they probably should put barriers between you and the
people you serve.
that the customer thinks you don’t. You
know what, perception is everything!
can help Does that mean you should take every call?
enormously. No, because you would never get any work
If you want to really maximize the profit
potential of your advertising then begin with It’s all part of done. First, few of us take time out to think
strategically – we’re too busy fighting fires.
creating a perceived difference.
empowering So for the next few weeks try this.
The first step to creating a perceived
difference is to pay attention to the words
people. Allocate a part of your day to be simply “with
you”, and instruct everyone else that you’re
we use. Many of the words we use everyday going to be “with yourself (someone)” for a
convey we don’t care. Most of time we use “Can I take a message?” certain amount of hours.
certain words or phrases on the telephone Replace it with “maybe there’s some way I
– thus killing any chance of persuading the can help.” Again the difference is small but Then when a call comes in for you, it will
prospect to visit the showroom. I wonder critically important. get handled like this: “Thanks for calling,
how many more vehicles we would sell by John is with someone right now, he tells me
just eliminating certain words or phrases. By forcing everyone to say, “maybe there’s he will be free at 10:30. In the meantime,
some way I can help” you’re forcing maybe there’s some way I can help.”
Here are some phrases for you to immediately people (in a nice way, of course) to get
eliminate from your store’s vocabulary: much more involved. So all of a sudden, You know what; the simple truth is that they
your receptionist, your front line people probably can help enormously. It’s all part
• “I’m sorry” or whoever answers the phone has to get of empowering people. Try theses ideas they
• “He’s in a meeting” involved in helping the caller solve the really do work.
• “May I take a message? problem.
• “Can I ask who’s calling?” Next month’s article will discuss more
The effect of that is immense. Imagine the specific words and phrases your sales
As I sat down to write this editorial I realized dramatic skill growth that will come for your staff can use to increase your percentage
my own company is guilty of a few. Let’s all prime telephone answerers from forcing of appointments and sell more cars. What
work together and ban them right now! them to use that phrase. will that do for you? The perception of your
store from customers, prospects and in your
Let’s look at why. “He’s in a meeting” community will dramatically improve and
Do you know what most customers think your advertising investment will start to pay
“I’m sorry” when they hear that phrase? “Look … when you much bigger rewards!
Now clearly you do use that phrase if you’ve will you people get serious about customers
messed up. But please do not use it in this and stop having meetings all the time.”
scenario:
Use this phrase instead, “Thanks for calling, Scott Joseph is the president of J&L
The caller calls and asks to speak to John John’s with someone right now” … and Marketing Inc. He can be contacted
Salesman. John’s not in so you hear… “I’m then of course, you add on the end, “Maybe at 866.429.6846, or by e-mail at
sorry, John’s not here right now.” there’s some way I can help.” sjoseph@autosuccess.biz.
www.autosuccess.biz
10
12. sts ms ls fis sf
PaulAccinno
sales and training solution
Ofßine Strategies to Build Online TrafÞc
Recently much has means of reaching the largest number of with radio. (Customer sees and hears your
been said about people for the lowest cost per impression. ad simultaneously with proper frequency).
Search Engine Remember, all you are trying to do is market Again, don’t load the board up with copy.
Optimization (SEO). your URL. Five or ten second spots are all The main element needs to be your URL.
This has proven to that is necessary …”Need a Car or Truck? Add your brand logos and some short
be an effective means of building online Visit valuemotors.com”. Short commercials, copy. That’s it. Remember, it needs to be
traffic. However, SEO should not be the sole run a lot of times, will establish good reach immediately readable from a distance at 60
method of marketing your Web site. There and frequency and provide excellent market MPH!
are still a lot of shoppers that process offline coverage. Most TV and cable stations will
information. According to J.D. Power & produce this simple spot at no charge when Direct Mail
Associates”…traditional offline advertising you place your buy. With this medium you can target specific
is an extremely effective way to drive traffic areas of your market, both geographically
to a Web site”. All you are really trying to do Radio and demographically, i.e. adults 25-34 within
is establish “top of mind” awareness for your This medium provides mass reach and can a 20 mile radius of your store. Even though
Web site address so the customer pops your be used quite efficiently to market your the Internet covers virtually everywhere,
URL in the browser first and you do not have URL through news, weather and sports your best prospects (better closing ratios,
to rely solely on search engines to find your sponsorships…”Today’s news is brought to higher grosses, more repeat business etc) are
Web site. you by valuemotors.com…we never close!” still going to come from your local trading
area. It doesn’t have to be an expensive
But we are getting ahead of ourselves, piece; a postcard with your URL and a brief
because the first step in developing any
strategy for building Web traffic is to
Regardless of message is all it takes. Start by sending it to
all your existing customers.
establish an Internet Marketing Budget. which medium or
Like any budget it should be based on combination of If you do not want to establish an Internet
potential ROI. There are several ways to
determine an Internet Marketing budget. If
media you choose Marketing Budget, then at least make sure
your URL is included PROMINENTLY
you are looking to sell 50 cars a month on (a multi-media in your existing advertising. In TV make
the Internet, and your average advertising approach is always sure you “say” your URL as well as video.
cost per new and used vehicle retailed is
$300, then your monthly budget should be
more effective), In radio be sure to repeat your URL just as
you would your phone number. In print,
no more than $15,000 per month (which you need to go you can create a boarder that simply repeats
should include the cost of your Web site ofßine to drive your URL without using up a lot of space. In
and any third party lead services to which
you subscribe). Another method would be
trafÞc online. Outdoor, make sure your URL can be read
at a distance at 60 MPH and in direct mail,
to calculate your budget as a percentage again make sure it is prominent. Be sure to
of gross profit. Again, using 50 units as an Newspaper discuss with your advertising agency that
example with an average gross per vehicle To keep costs reasonable you could run you want your URL prominent in all your
retailed of $1500 and an advertising to gross “Business Card” size ads in various sections advertising. Web addresses have a way of
ratio of 25 percent, your budget would be of the newspaper...classified, sports, and disappearing from your advertising if you’re
$18,750 per month. Still another method business etc. Create them in reverse (black not paying attention!
could be if your Internet sales are 10 percent background, white type) and they’ll stand
of your business and you want to grow it to out and only include your URL and a very Regardless of which medium or combination
15 percent, simply dedicate 15 percent of brief message like, Need a Car or Truck? of media you choose (a multi-media
your ad budget to the Internet. Regardless Visit www.valuemotors.com. approach is always more effective), you need
of how you want to calculate it, and what to go offline to drive traffic online. Keep
different accepted industry guides you use, Outdoor one thing in mind...with the advent of the
you need to establish a Internet Marketing This is an excellent medium for automotive Internet; there are no more customers...just
Budget before you can successfully build Internet advertising. The customer is in their prospects!
Web traffic! car, seeing your URL everyday. Half the
battle is simply getting them to remember
Paul Accinno is president and CEO of
Television your Web address and outdoor provides WorldDealer, Inc. He can be contacted at
While television may seem cost prohibitive the visual support in a dramatic way. It can 866.429.6826, or by e-mail at
for your ad budget, it is still the most efficient also be used quite effectively in conjunction paccinno@autosuccess.biz.
www.autosuccess.biz
12
13. sts ms ls fis sf
KirkManzo
sales and training solution
Full Price is a Fair Price
The concept seems these are absolute minimums. Hopefully you
THANK
YOU
so foreign to many can improve to one in five full-price sales.
dealerships today. The
pendulum appears to In order to accomplish this, use a payment
have swung so far in & down-payment conversation. This will
favor of the consumer yield better results during your negotiations
that most sales people and desk managers compared with a trade-difference negotiation. to all of this year’s
concede defeat before the battle even begins. Whether you choose a traditional four-square
format or some other proposal presentation, attendees, speakers
The person you need to sell on Full Price
being a Fair Price is really who? That’s right,
the focus needs to be on payment and down
payment to maximize your profit opportunity. and vendors who
it’s you. How can you convince your sales
person, let alone the customer, to pay full Deals go from the desk to the customer. The
helped make the
asking price if in your mind you have already sales person will then present the proposal
made a concession? Perhaps some of you and wait for the customer to respond (react)
believe it is not even possible to sell a vehicle to our figures thus starting the negotiation.
at the full asking price unless that customer
just fell off a turnip truck.
This contrasts what many sales people do
today by taking an offer to the desk to begin BEST PRACTICES
negotiations. Remember all deals start at
The best way to gauge whether you have the the desk.
courage and intestinal fortitude to actually do
this is to just ask yourself, “How many Full Start the first pencil as follows: Market value
List deals did you deliver in the past 30 days? (MSRP) less rebates (as they apply), use two A Great
60 days? 90 days?” If the answer is one or trade figures ($500 spread) higher figure to
none to any of the three time frames, you may
need to sell yourself first.
In the early 1900s there was an Italian
be ACV less $500-750+, payoff to bank, 20
percent down payment, payment options at 48
months two figures with a $10 spread. Use an
average interest rate for your area to start. (10
SUCCESS!
mathematician and economist named Vilfredo percent for this example)
Pareto. He studied business, society and the
environment in search of an explanation Example:
for the natural distribution of results. His A. Market value $31,987
findings lead to the ratio that bears his name, Rebate $1,500
The Pareto Principle. Most of you are more Adjusted Sale price $30,487
familiar with the ratio itself: 80/20. B. Trade in $3,461
up to $3,963
The 80/20 rule simply states that a small
number of people often impact the majority of C. Payoff $2,750
the results. There are examples and nuances to D. Down payment $6,097
this principle that are too numerous to mention (20 percent)
here. For our discussion, reality dictates that E. 48 Months $587-597
while the majority of your customers will
behave similarly (80 percent) the minority (20 Your sales person will then ask for a check.
percent) differ in their approach and outcome “Mr./Mrs. Customer just go ahead and
of purchasing a new vehicle. write me a check for $6,097, make that out
to Thompson Motors and I will get your
Within that 20 percent there is both good paperwork started.”
news and bad news. Approximately half of
them (10 percent) will be a delight, the other Then shut up and wait for their response.
half (10 percent), well, they are probably why Realize some will actually surprise you and
your local bartender knows you by name as write the check for $6,097. If they do not,
you recall your tales of woe. well that’s something we will discuss in next
month’s article.
One in 10 should pay you all the money.
If this is not happening, there is only one Go make something happen!
reasonable conclusion: you and/or your sales
person never asked them to pay full price. Kirk Manzo is the general manager
So if you are not even seeing one in 20 (four at Ziegler Supersystems. He can be
to five per 100) full pop deals, it’s simply contacted at 800.858.6903, or by e-mail at
because you are not asking. Bear in mind kmanzo@autosuccess.biz.
june 2005
13
14. sts ms ls fis sf
JeffFishel
marketing solution
Promote Events Designed to Drive TrafÞc to Your Dealership and
Brand Yourself in Order to Improve Your Image in the Marketplace
Car shoppers want So what happens when two dealers in the To determine your dealership’s brand
the best deal now, same market stage their events on the same differences, start by asking yourself these
and whoever gives weekend? What if their offers are similar and questions:
them the best deal they’re selling identical makes of vehicles?
now will get their In this instance, the dealer who has branded • If I had to pick only one thing I want
business. During event his or her dealership best will win. the customers in my market to know
promotions, the customers must also act now about my dealership, what would it
or they will lose out. This sense of urgency is William Bernbach states: “In advertising, be?
why event promoting sells cars. not to be different is virtually suicidal.” • What do I do better than the
competitors in my marketplace?
• What can I offer customers in my
market that my competitors can’t?
• What do I offer my customers that
translate into real benefits for them?
• What makes me special in this
market?
• Who is my target market and what
would my competitors not want my
target market to know about me?
Your answers to these questions will be the
first steps in determining your brand.
Once you have determined and established
your brand, you must then advertise it.
This may include using targeted tag-lines,
uniform graphics, unique print design,
custom logos and perhaps a jingle (last
month’s article) all within your radio, TV,
Internet and print media.
Plan your advertising months in advance.
Planning ahead utilizes your entire budget
most effectively, allowing you to select
your best event promotional days, weeks
and months of the year. Moreover, planning
ahead saves you up to 40 percent in your
annual media expenditures allowing you
more budget for your branding campaigns.
Combining your monthly brand advertising
with your event promotions is effective
because the one consists of the urgent deals
offered to your marketplace during each
weekly event promotion. And the other
gives prospective customers the added
reasons they need in selecting your store
over your rival’s.
Jeff Fishel is the national sales director
for FishMarketingOnline.net. He can be
contacted at 866.827.6246, or by e-mail at
jÞshel@autosuccess.biz.
www.autosuccess.biz
14
15. sts ms ls fis sf
PattiWood
leadership solution
The Secret of
the Perfect Handshake
If you know the
rules, you give a firm Although the handshake is rapidly becoming
three-to-five pump an internationally accepted business greeting,
handshake in greeting Americans shake hands more often than the
while standing people of other cultures. The handshake can
approximately 16 serve as an important verb in your body
inches from the person. In business you language vocabulary. Few things can create
greet someone in this manner and then such an effective first impression as an
step back to a minimum of two-and-a-half easily given, gracious handshake. Based on
feet distance, with no other touch in the research, here is the best way in American
critical first four minutes of the interaction. culture to have the perfect handshake.
A handshake allows you to form a first
impression of that person or, if you have met The Perfect Handshake
them before, to form an impression of them • Rise, if seated. That rule used to apply
for that interaction. to men only; now women should rise, as
well. If you remain seated when someone
In Western cultures, handshaking is used to is introduced to you, the communication of
greet another person and “seal” a contract or personal indifference is unmistakable, not
promise. The handshake is also the quickest, to mention offensive. The only approved
most effective way to establish rapport with exception to rising to shake hands is if you
another person. It takes an average of three are eating. If that is the case, you can wait to
hours of continuous interaction to develop shake hands until after you are done.
the same level of rapport that you get with
a handshake. • Walk up to the person with confidence.
Keep your head level and your hands at your
side. Be sure to keep your hands out of your
A Þrm handshake pockets. Research indicates that we don’t
that shows trust people with hands in their pockets.
Make sure your right hand is free to shake
strength and hands. Always shift any purses, briefcases,
vigor with
papers, beverages or cell phones to your left
hand before you begin the greeting.
appropriate eye • Smile briefly. Don’t overdo it. If you smile
contact length too long or too much, you are perceived
and completeness as submissive. An over-extended smile
can create negative impressions, such as
of grip is related “overeager,” “easily manipulated” or “not
to a favorable intelligent.” Women need to take special
care not to over-extend the smile as it can
Þrst impression. reduce personal power and can even be
misinterpreted as a sexual come on.
We shake hands to show we hold no weapon. • Make eye contact. There is a substantial
It is thought to have started with the Roman amount of research showing that good eye
arm clasp. One man would reach out his contact increases feelings of trust. Don’t
right hand, his weapon hand, and clasp just stare, but don’t look at your shoes. Making
below the elbow of the man he was greeting. eye contact as you approach lets the person
With this greeting neither person could yield know you want to interact. Men need to
a weapon easily. Medieval knights created extend the eye contact for at least three
the shaking part of the handshake because seconds without blinking or looking away as
they knew that other knights hid daggers they shake hands. Women need to be careful
up in their sleeves and that shaking would of holding eye contact for more than three
dislodge any hidden weapons. So basically to five seconds at a time with men they have
handshakes are weapon checks. continued on page 34
june 2005
15
16. sts ms ls fis sf
TomGegax
sales and training solution
10 Directives for
Developing Via Delegation
Leaders who feel they you. Last, there’s the I-might-lose-control Top 10 delegation directives:
lack the time to think Syndrome. No problem; people love working 1. Transfer ownership. Be clear: “Here you
strategically don’t for a control freak in an office gulag. go. This baby’s all yours now.”
use the full potential
of their employees. A Good leaders occasionally use overt non- 2. Tell why. An employee who understands
manager must know delegation to deliver a message. I saw this why he or she is being asked to handle a task
that effective delegation not only adds to first-hand while I led Tires Plus. Take the is more likely to execute it thoroughly.
his or her employees’ development, but Monday morning Eric Randa, our loss- 3. Get the wheels turning. For complex
frees him or her for more profitable business prevention czar, and Wayne Shimer stopped projects, help the delegatee develop an
pursuits. by a Wisconsin Tires Plus store. They action plan by asking open-ended questions
walked past soda cans and other weekend like “How do you see this unfolding?” and
Delegating can be summed up in three detritus spotting the lawn on their way inside “What roadblocks do you anticipate, and
words: let ’er rip! It develops employees only to discover the store manager and two how will you overcome them?”
like nothing else. Hand over anything your associates standing around. Now, understand
people can do: that we viewed cleanliness as next to 4. Set deadlines. Mutually agree on a
godliness, which set us apart in an industry completion date and time. Otherwise, the
• better than you; synonymous with “grease monkey” and task may sink to the bottom of the delegatee’s
• quicker than you; “industrial waste.” Wayne, a vice president priority list.
• at less cost than you; and part owner, walked back outside and, for
5. Ask for a recap. It’s dangerous to assume
• that will add to their development; all to see, picked up the trash. “You never
the delegatee perfectly understands the
• that will free you for more important saw Wayne have to pick up trash at that store
assignment. Always double-check: “To
pursuits. again,” recalled Eric.
make sure I communicated properly, please
explain what you’re planning to do and
Under-delegation is rampant. Many people Nobody ever accused me of under-
why.” The answer may surprise you.
who manage by the seat of their pants delegating. “Tom was a dedicated delegator,”
wear their resistance to parceling out tasks Wayne recalled. “He forced me to be better 6. Monitor (but don’t smother). The
like a badge of honor. Others conceal their by making me do things I didn’t think I point is liberation, so don’t micromanage
reluctance behind a wall of bravado. There could do. The downside was that Tom was unless the delegatee is untested or timing is
are myriad excuses for under-delegating. so strong at it he would over-delegate. His critical. If he or she starts down the wrong
There’s the I-can-do-it-better-myself logic was that he never knew how far he path, say something like, “That might
Syndrome, which, even if it’s true, doesn’t could challenge you to find your endpoint, work, but have you considered going in this
change the fact that your time would be and Tom wanted to find that endpoint. If direction? . . . What do you think that could
better spent elsewhere. There’s the classic I- your optimum capacity was 98, he wanted yield and why?”
can-save-time-doing-it-myself Syndrome. you at 97.9.”
It might take a while to train someone to 7. No take-backs. Don’t retract an
do a repetitive task, but once it’s learned I do tend to overload people. But that’s so assignment at the first sign of trouble. That
you’re home free. Do the math - delegating they learn to unload lesser priorities. Still, can kill confidence. Setbacks are learning
just one additional assignment each week there’s a fine line. You have to trust that your opportunities, so patiently coach the
to seven people who report to you crosses people will yell “Uncle!” One time, Wayne delegatee back on track.
30 assignments off your to-do list every mentioned the time he had 135 items on
8. Play to a delegatee’s strong suit. Tailor
month. Another malady is the Somebody- his Goals Activity Report. He couldn’t get
assignments to people’s strengths. Don’t
else-might-make-a-mistake Syndrome. much help because everyone underneath him
saddle a big-picture thinker with a detail-
Mistakes will be made, but that’s exactly how already had full plates. “I just became adept at
intensive project.
people develop the experience needed to free figuring out what Tom really wanted done,”
you up for more meaningful activities. Wayne said. “What were the $10 items, what 9. Don’t duplicate. Assign specific duties to
were the $5 items, what were the $1 items? I specific people, with zero overlap. If there
Other conditions that cause under-delegation took the $10 items and worked the heck out are two people involved, make it clear who’s
include the Fear-of-giving-the-wrong- of ’em. If he hit me on an uncompleted $5 in charge.
impression Syndrome, marked by concern item he’d grill me some, but he never brought
that you’ll appear to be carrying less than up the $1 items. His motto is, ‘Be tough, not 10. Distribute evenly. Up-and-comers need
your own weight. In fact, respect deepens rough.’ I’m convinced he walked out of the challenges, too. Avoid the temptation to
when you place your trust in others and focus building at night smiling and thinking, ‘Let’s overload your stars.
on big-picture thinking. There’s also the I- see how he handles this one.’”
Tom Gegax is founder and chairman
feel-threatened Syndrome - fear of being emeritus of Tires Plus and founder of
shown up by a subordinate. That leads to a Tough-not-rough delegation benefits Gegax Management Systems. He can be
mediocrity mindset and an idle, cynical staff everyone. Before plopping assignments on reached at 866.210.2832, or by e-mail at
whose poor performance reflects poorly on desks, do your delegation due diligence. tgegax@autosuccess.biz.
www.autosuccess.biz
16
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18. fs feature solution
TonyCantrell
How to Add to
Your Response Rate
Simple additions to your direct mail your potential customers excited and prompt in exchange for the free gift. Many sales
campaigns can easily increase your response them to look for your invitation in the mail. the following week and month come from
rates and lower your cost per sale. Every Messages up to thirty seconds long can be what some would call, “Gift Grabbers.”
store wants more bodies in the showroom left to convey to your customers the exciting NADA says that 72 percent of people buy on
as a result of their marketing efforts. opportunity that is soon to arrive in their impulse. Gifts can range in price from $.25
Direct mail is one of the quickest and most mailbox. Messages can be used to condition to $100 and more. How much is your next
cost effective means to do this. It can be the customer to call the dealership to set an sale worth? Adding gifts to your campaign
measured, so continuous improvement is appointment the day the invitation arrives so will bring more potential customers in the
possible. Several methods and many new they can be sure to receive the special rates door. The Vertis Customer Focus® 2005:
tools have made results possible that dwarf and/or pricing the invitation makes available Automotive study, reveals that the number
those only a couple years ago. to them. Some dealers and managers like to one reason for many consumers to buy a new
personally invite the customer to come in and car is simply because they want one. For 36
One such improvement is Internal Voice meet them face-to-face so they can receive percent of the new car purchasers, desire for
Response (IVR). IVR is an automated the special gift that is waiting for them. a new automobile will lead them to make a
telephony system that allows potential purchase within the next 12 months. The
... the number
customers to be pre-qualified for an auto study also revealed that 43 percent of adults
loan based on the factors selected by the who plan to purchase a new vehicle responded
dealership. The system will ask questions
one reason to direct mail by visiting the dealer in person,
for many
such as monthly household income, desired 28 percent visited the sender’s Web site and
monthly payment and job time. Some systems 14 percent called an 800 number. Since direct
are voice responsive and will understand
consumers mail from an automotive dealer can help
to buy a new
and move forward based on the customer’s educate consumers on future purchases, it is
voice answers. Other systems require that also an effective medium to increase future
the customer respond using the touch-
tone keys on the phone. Bilingual systems
car is simply dealership traffic.
make this convenience available to your because they Promotional Insurance is used for exciting
Spanish-speaking customers as well. Next
the system will ask for permission to pull want one. and incredible giveaways. Large giveaways
will increase response rates of direct mail
the customer’s credit so you can have access campaigns by bringing in the buyer who
to the maximum amount of information Promotional gifts have been used for feels lucky. How many of your customers
before the customer visits the lot. When sometime, and remain effective when pay for lottery tickets? When a car or a
the customer has completed the process, properly presented in the voicemail and large cash prize is given away, insurance
the dealership is notified immediately by direct mail offers. Promotional gifts also can be purchased for as little as 6 percent of
fax or email. Advanced IVR systems have remain an inexpensive and effective way to the cash value. Insurance is available up to
a web interface that allows users to go in to increase response rates and to promote the $1,000,000. Insuring a percentage of a car or
the call records, listen to them, assign them carnival like atmosphere and excitement cash giveaway gets you the same attention
to salespeople and even tag leads with their level that can lead to buying frenzies. The and publicity with less risk and little
status in the sales process. gift will also bring in the buyer who is riding additional expense. Take the time to find out
the fence or just deciding to enter the market. if promotional insurance is right for you.
Another innovation that improves the This justifies the visit and if nothing else this
effectiveness of direct mail is Voice Mail customer will often feel obligated to give The effectiveness of Web surveys has grown
Broadcasting (VMB). A VMB tool will get you a chance to earn his or her business exponentially over the past couple of years.
www.autosuccess.biz
18
19. Web surveys are very similar to internal planning on buying a new vehicle while Generation Y adults are six
voice response programs but instead of the within the next 12 months because percent more likely than total adults
phone, they use the computer. Customers they need one for work, while 4 to be motivated by the same factor.
are directed to a Web site that will ask the percent need one because they have a • Of the Younger Baby Boomers
questions needed to get the customer pre- new driver in the family and 3 percent (1956-1964) surveyed, 21 percent
qualified. Questions about their wants and can afford a better car. said a rebate offer motivates them to
needs give the dealership the ammunition • Only 5 percent of new car purchasers visit a dealer when shopping for an
to deliver these customers when they are planning on making a purchase automobile, compared to 16 percent
arrive for their scheduled appointments. A within the next 12 months based on of total adults.
multiple-choice format allows the customer lower prices, lower interest/financing • Generation Y adults are 5 percent
to design their own close by sharing the or price incentives. more likely than total adults to be
types of incentives and discounts that motivated by a special trade-in offer.
motivate them to make a buying decision. Men More Likely to Purchase a New Car.
When the survey is completed the customer • 24 percent of single Generation Y What Makes Auto Loan Applicants Open
is informed that they have won a prize and (1977-1994) men stated they plan Direct Mail?
they are directed to the dealership Web site to purchase a new vehicle within the • 66 percent of direct mail readers who
or showroom floor. Upon completion, the next 12 months. plan to apply for an auto loan said
results are immediately faxed or emailed to • In comparison, 16 percent of they are more likely to open a package
the dealership for follow-up. These are the Generation Y women have plans to that looks interesting.
hottest leads and should be called within 15 purchase a new vehicle within the • Of the direct mail readers who have
minutes with a deal structured the way the next 12 months. plans to apply for an auto loan, 64
customer said they like to buy. • 20 percent of men with a household percent are more likely to open a piece
income of $75,000+ and some college based on the timing of its arrival.
There are a number of ways to compliment education have plans to purchase a • For 60 percent of direct mail readers
a direct mail campaign. Economies of scale new automobile within the next 12 who plan to apply for an auto loan,
can be realized by finding a company that months. having their name on the front of the
is large enough to handle every step of the • Similarly, 15 percent of women with envelope will influence their decision
process. Direct mail will increase the sales, a household income of $50,000+ and to open.
profits, and most importantly, bottom line. some college education reported they • 57 percent of direct mail readers who
plan to purchase a new automobile plan to apply for an auto loan are
When considering direct mail, keep in within the next 12 months. more likely than total adults to open
mind these useful statistics provided by the packages that contain a special offer
Vertis Customer Focus® 2005: Automotive Main Incentives Motivating Adults to Visit or discount.
study. a Dealership.
• 32 percent of Generation X (1965-
Top Reasons Why Adults Are Buying 1976) adults were motivated to visit a
New Cars dealership based on price incentives;
• 8 percent of the new car purchasers five percent more than the average
said they are motivated to purchase a adult.
new car because of their current auto’s • Generation X adults are 9 percent Tony Cantrell is the president and CEO
of Automotive Consulting Co. He can be
mechanical problems. more likely than total adults to be contacted at 800.901.2859, or by e-mail at
• 11 percent of new car purchasers are motivated by a special financing offer, tcantrell@autosuccess.biz.
june 2005
19
20. sts ms ls fis sf
BrianTracy
sales and training solution
Increasing Your Earning Potential
Throughout most of field is probably doubling every five years, ability is largely determined by the perception
human history, we this means that fully 20 percent of your of excellence, quality, and value that others
have been accustomed knowledge and your ability in your field is have of you and what you do. The market
to evolution, or the becoming obsolete each year. Ask yourself, only pays excellent rewards for excellent
gradual changing and “What parts of my knowledge, skills and performance. It pays average rewards for
progressing of events work are becoming obsolete? What am I average performance, and it pays below
in a straight line. Sometimes the process doing today that is different than what I was average rewards or unemployment for below
of change was faster and sometimes it was doing one year ago and two years ago?” What average performance. Customers today want
slower, but it almost always seemed to be are you likely to be doing one year, two years, the very most and the very best for the very
progressive, from one step to the other, three years, four years and five years from least amount of money, and on the best terms.
allowing you some opportunities for planning, today? What knowledge and skills will you Only the individuals and companies that
predicting and changing. need and how will you acquire them? What provide absolutely excellent products and
is your plan for your economic and financial services at absolutely excellent prices will
Today, however, the rate of change is not only future? survive. It’s not personal. It’s just the way our
faster than ever before, but it is discontinuous. economy works.
It is taking place in a variety of unconnected We are now in the knowledge age. Today, the
areas and affecting each of us in a variety of chief factors of production are knowledge To earn more, you must learn more. You
unexpected ways. Changes in information and the ability to apply that knowledge to are maxed out today at your current level
processing technologies are happening achieving results for other people. Your of knowledge and skill. However much you
separately from changes in medicine, changes earning ability today is largely dependent are earning at this moment is the maximum
in transportation, changes in education, changes upon your knowledge, skill and your ability you can earn without learning and practicing
in politics and changes in global competition. to combine that knowledge and skill in such something new and different.
Changes in family formation and relationships a way that you contribute value for which
are happening separately from the rise and fall customers are going to pay. And here’s the rub. Your accumulated
of new businesses and industries in different knowledge and experience is becoming
parts of the country. And if anything, this The Law of Three says that you must obsolete bit by bit, day by day. The knowledge
rate of accelerated, discontinuous change is contribute three dollars of profit for every in your field is doubling every three to five
increasing. As a result, most of us are already dollar that you wish to earn in salary. It costs years. That means that your knowledge must
suffering from what Alvin Toffler once called, a company approximately double your salary double every three to five years just for you
“future shock.” to employ you in terms of space, benefits, to stay even.
supervision, and investment in furniture,
You can’t do very much about the enormity fixtures, and other resources. For a company The solution to the dilemma of unavoidable
of these changes, but the one thing that you to hire you, they have to make a profit on what change and restructuring is continuous self-
can do is to think seriously about yourself and they pay you. Therefore, you must contribute development. Your personal knowledge and
your basic need for security and stability. In no value greatly in excess of the amount you your ability to apply that knowledge are
area is this more important than in the areas of earn in order to stay employed. To put it your most valuable assets. To stay on top
job security and financial security. You must another way, your earning ability must be of your world, you must continually add to
give special attention to your ability to make considerably greater than the amount you are your knowledge and your ability. You must
a good living and provide for yourself in the receiving, or you will find yourself looking continually build up your mental assets if
months and years ahead. for another job. you want to enjoy a continuous return on
your investment. And only by building on
Above all, to position yourself for tomorrow, To position yourself for tomorrow, here is your current assets do you stop them from
you must think continuously and seriously one of the most important rules you will ever deteriorating.
about your work today, your earning ability, learn: “The future belongs to the competent.”
and the work that you will be doing one, The future belongs to those men and women By engaging in continuous self-improvement,
three, and five years from today. You must who are very good at what they do. Pat Riley, you can put yourself behind the wheel of your
plan to achieve your own financial security, in his book The Winner Within, wrote that, “If own life. By dedicating yourself to enhancing
no matter what happens. you are not committed to getting better at what your earning ability, you will automatically
you are doing, you are bound to get worse.” be engaging in the continuous process of
Charles Kettering said that you should give To phrase it another way, anything less than personal development. By learning more, you
a lot of thought to the future because that is a commitment to excellent performance on prepare yourself to earn more. You position
where you are going to spend the rest of your your part is an unconscious acceptance of yourself for tomorrow by developing the
life. One of the greatest mistakes that people mediocrity. It used to be that you needed to be knowledge and skills that you need to be a
can make, and the one with the worst long- excellent to rise above the competition in your valuable and productive part of our economy,
term consequences, is to think only about the industry. Today, you must be excellent even to no matter which direction it goes.
present and give very little thought to what keep your job in your industry.
might happen in the months and years ahead. Brian Tracy is the chairman and CEO
Excellence, quality, and value are absolutely of Brian Tracy International. He can be
Imagine what your job will look like five essential elements of any product or service, contacted at 866.300.9881, or by e-mail at
years from today. Since knowledge in your and of the work of any person. Your earning btracy@autosuccess.biz.
www.autosuccess.biz
20