Which Wing on an Airplane is most Important?Ensuring a healthy business flight plan-step three While fiying the other day, I began considering all of the important and essential components which were working together in keeping the aircraft aloft. An immense amount of electronics;engine components, fluids,aerodynamics,etc.,all working together and each very important. Then, the simple word picture occurred to me that presented the above question, "Which wing on an airplane is most important"?
Similarly, in a dealership there are mulutudes of components that keep the store climbing toward a growth oriented flight plan and often if even one of these is not in place, a dealership begins a rapid descent. I have listed below a few of the critical components required to maintain a steady course towards total dealership growth.
Directional leadership
Generating the flight plan direction for the store and implementing how the team is going to hit the business altitude the dealership desires to reach is a role played out by the leader. In. todays market,a leader's followers no longer want to accept the old fashioned methodologies, full of authoritative or bureaucratic ideas or leaders who impose here today, gone tomorrow techniques. Your position does not create followers. Followers decide to follow you.
Today's followers want leaders with well-rooted human values, character and integrity. In addition, they want leaders who will respect and acknowledge the talents and contributions given by others. People want leaders who can identify and create
an atmosphere of teamwork and creativity as they seek to match the best production levels for themselves and the dealership. Failure is contagious, but success is infectious. Say: "I'm proud of you"; or "youre a bunch of winners". Reinforce success. You must reward success. Expect some failures.
Remember you are dealing with human beings. Give the people the latitude to learn and watch them soar to new heights. Your "pre-flight" checklist has to contain certain leadership initiatives in order to gain proper altitude for sustained flight into the new levels of achievement. Make certain you give them clarity as to what the mission is. Remember, when the slepherd sleeps; the sheep wander. Stay on your game, be alert to what is on and be the catalyst to inspire greatnes in every person on your tean. Again, the directional leader's primary role is to lay down a long-term performance improvement strategy and then with clarity, implement it throughout the dealership.
Taken from May 2012 Dealer Magazine-Chuck Barker
Thursday, May 31, 2012
Wednesday, May 30, 2012
Great One Liners
What would your day look like if you could live by the following guidelines?
Today I will begin a new life.
I will greet this day with love in my heart.
I will persist until I succeed.
I am nature's greatest miracle.
I will live this day as if it were my last.
Today I will be master of my emotions.
I will laugh at the world.
I will multiply my value one hundred fold.
I will ACT NOW.
Thanks Og Mandino, taken from "The Worlds Greatest Salesman".
Tuesday, May 29, 2012
There is a difference:Memorial Day Versus Veterans Day
Veterans Day is intended to honor and thank all military personnel who served the United States in all wars, particularly living veterans. It is marked by parades and church services and in many places the American flag is hung at half mast. A period of silence lasting two minutes may be held at 11am. Some schools are closed on Veterans Day, while others do not close, but choose to mark the occasion with special assemblies or other activities.
Memorial Day is a federal holiday observed annually in the United States on the last Monday of May. Memorial Day is a day of remembering the men and women who died while serving in the United States Armed Forces. Formerly known as Decoration Day, it originated after the American Civil War to commemorate the Union soldiers who died in the Civil War. By the 20th century Memorial Day had been extended to honor all Americans who have died in all wars. It typically marks the start of the summer vacation season, while Labor Day marks its end.
Memorial Day is a federal holiday observed annually in the United States on the last Monday of May. Memorial Day is a day of remembering the men and women who died while serving in the United States Armed Forces. Formerly known as Decoration Day, it originated after the American Civil War to commemorate the Union soldiers who died in the Civil War. By the 20th century Memorial Day had been extended to honor all Americans who have died in all wars. It typically marks the start of the summer vacation season, while Labor Day marks its end.
Friday, May 25, 2012
Process Evaporation
No matter what business your in you have Processes that you use Daily, Weekly or Monthly.
When is the last time you reviewed to see what processes are out of date, or where you were cutting corners?
See below for a list of Automotive Related Processes to get your thoughts started:
When is the last time you reviewed to see what processes are out of date, or where you were cutting corners?
See below for a list of Automotive Related Processes to get your thoughts started:
Process Evaporation Exercise
Job Title (No Names)________________________________________
The following is a checklist of processes that you may or may not have in your operation. The purpose of this exercise is to review your operation to see what processes you have implemented in your operation that are no longer being utilized or has been modified from your original process
(Reply for each Y for Yes and N for No, and last modified date):
New Vehicle Department:
1. 100% T.O. to Management
2. Listing of 90+ day old units
3. Aged vehicles on the front line
4. All customers logged and follow up
5. Managers have desk log up on computer
6. Daily one-on-ones with all sales staff
7. No short cuts in sales process
8. Referral program is being utilized
9. GM/Dealer approves all units ordered
10. Sources of customers are accurate
11. Damages to new vehicles disclosed
12. Introduction to new customers to service
13. RDR and rebates confirmed at delivery
14. Ongoing scheduled training session’s
15. Lease renewal process
16. Lease returns process
17. Accessory sales process
18. Damaged properly disclosed
19. Delivery Process
Used Vehicle Department:
1. CarFax run on every unit in inventory
2. Two managers appraising trades
3. Used vehicles ranked A, B, C, & D
4. Used Units front line ready in 3 days
5. Daily walk around trades by variable managers
6. Re pricing units at 30 and 45 days
7. Recon and appraisal dollars per unit are close
8. All vehicles to auction or sold seal bid process
9. Inventory rotated weekly
10. Hoods and trunks up every 15 days
Internet department:
1. All leads are responded to within 4 hours
2. All leads called within 24 hours
3. Sources of leads are analyzed monthly
4. Website has current programs, specials, etc
5. Used vehicles identified as certified
F&I Department
1. Managers doing interview with customer’s
2. Managers presenting menu 100% of time
3. Missing menu log maintained
4. Finance revenue less than 50% of F&I income
5. Deals out of F&I within 24 hours
6. Deals funded within 4 days
7. Titles and Power of attorney signed
8. Managers at desk when not with customer’s
9. Arbitration agreement signed in F&I
10. Deals completed outside of dealership-notarized
Service Department
1. Service walk around every customer
2. Previous history/preprinted on appointments
3. Menu presentation every customer
4. Inspect all vehicles with multi-point inspection
5. Active delivery to customer
6. Labor grid pricing
7. Loaner vehicles being tracked
8. No loaner out more then 3 days
9. No repair orders more than 5 days old
10. Work in process checked weekly
11. OSHA records, training, and documentation
12. Shuttle and rental reimbursement from factory
13. Service advisors selling extended contracts on drive
Parts Department
1. Cash on all special orders
2. All special orders returned within 30 days
3. Daily bin spot check of part numbers
4. Lost sales are tracked accurately
5. Parts department is secure at all locations
6. Work in process is checked weekly
Body shop
1. All supplements are accounted for
2. Vehicles are not released without money or approval
3. Work paid to techs equal work completed
4. No repair order older than 30 days
5. Paint is properly disposed
6. Work in process checked weekly
Administrative
1. Walk dealership for privacy issues
2. Weekly manager’s receivables meeting
3. Weekly manager review of Rebate receivables
4. All vendors on the approved list at agreed pricing
5. Zero employee receivables
6. Employee review/issues signed by employee
7. Employee purchase policy for all departments
8. Financial statement completed by 5th working day
9. NCM reports submitted promptly and accurately
Other Areas
1. 100% collection of email addresses of all customers
2. Customer complaint resolution process
3. Phone UPS handled professionally using word tracks
4. Designated NON-Smoking areas utilized
Thursday, May 24, 2012
Wednesday, May 23, 2012
The NADA Story
The NADA story began in 1917 when 30 auto dealers traveled to the nation's capital to convince Congress not to impose a luxury tax on the automobile. They successfully argued that the automobile is a necessity of American life, not a luxury. From that experience was born the National Automobile Dealers Association. Today, NADA represents nearly 16,000 new-car and -truck dealerships with 32,500 franchises, both domestic and international.
For more information, visit www.nada.org.
For more information, visit www.nada.org.
Tuesday, May 22, 2012
NADA: Top 3 Factors Why New Car Sales Will Increase in 2012
NADA economist predicts more than 13.9 million new car sales in 2012
McLEAN, Va. (Jan. 5, 2012) —As the U.S. economy continues to improve this year, Paul Taylor, chief economist of the National Automobile Dealers Association, predicts more than 13.9 million new cars and light trucks will be purchased or leased in 2012.
Taylor, who is forecasting sales of 13.945 million new cars and light trucks for 2012 in the U.S., cites three key factors for the increase:
(1) Aging vehicles,
(2) Affordable credit, and
(3) Aggressive incentives.
A key factor that will drive new-vehicle sales in 2012, says Taylor, is pent-up demand in the marketplace caused by more consumers shopping out of necessity to replace their aging vehicles.
With the age of cars and trucks on the road today at nearly 11 years, consumers can no longer delay making a purchase of a new or newer vehicle," he said.
Another factor that is likely to result in higher auto sales this year is the availability of affordable credit from competing lending sources for auto loans.
"Interest rates on new car loans will remain historically low in 2012, due in part to policy decisions by the Federal Reserve Board to keep rates low and the U.S. economy growing," Taylor added. "As a result, affordable credit will be widely available in 2012 with more automaker finance companies offering low-interest and interest-free loans for up to 60 months?
Taylor notes that both domestic and international automakers will wage an aggressive battle to capture U.S. market share in 2012 by rebuilding a diverse selection of vehicle inventory at dealerships, ranging from cars and CUVs to truck-based SUVs. A decline in gasoline prices will also result in car buyers considering a wider range of vehicles in different segments, he added.
Auto sales typically increase with the exposure given to new vehicles during the auto show season in the first quarter and beyond,' Taylor added. 'Lower vehicle costs for car buyers through manufacturer incentives and rebates combined with low interest rates will support stronger sales in 2012. And higher prices on used vehicles mean higher trade-in prices when shopping for a new car or truck.'
NADA economist predicts more than 13.9 million new car sales in 2012
McLEAN, Va. (Jan. 5, 2012) —As the U.S. economy continues to improve this year, Paul Taylor, chief economist of the National Automobile Dealers Association, predicts more than 13.9 million new cars and light trucks will be purchased or leased in 2012.
Taylor, who is forecasting sales of 13.945 million new cars and light trucks for 2012 in the U.S., cites three key factors for the increase:
(1) Aging vehicles,
(2) Affordable credit, and
(3) Aggressive incentives.
A key factor that will drive new-vehicle sales in 2012, says Taylor, is pent-up demand in the marketplace caused by more consumers shopping out of necessity to replace their aging vehicles.
With the age of cars and trucks on the road today at nearly 11 years, consumers can no longer delay making a purchase of a new or newer vehicle," he said.
Another factor that is likely to result in higher auto sales this year is the availability of affordable credit from competing lending sources for auto loans.
"Interest rates on new car loans will remain historically low in 2012, due in part to policy decisions by the Federal Reserve Board to keep rates low and the U.S. economy growing," Taylor added. "As a result, affordable credit will be widely available in 2012 with more automaker finance companies offering low-interest and interest-free loans for up to 60 months?
Taylor notes that both domestic and international automakers will wage an aggressive battle to capture U.S. market share in 2012 by rebuilding a diverse selection of vehicle inventory at dealerships, ranging from cars and CUVs to truck-based SUVs. A decline in gasoline prices will also result in car buyers considering a wider range of vehicles in different segments, he added.
Auto sales typically increase with the exposure given to new vehicles during the auto show season in the first quarter and beyond,' Taylor added. 'Lower vehicle costs for car buyers through manufacturer incentives and rebates combined with low interest rates will support stronger sales in 2012. And higher prices on used vehicles mean higher trade-in prices when shopping for a new car or truck.'
Monday, May 21, 2012
Five Monkeys-The way we have always done it
1) Start with a cage containing five monkeys. In this cage, hang a banana on a string and put stairs underneath it. Before long, a monkey will go to the stairs and start to climb toward the banana.
2) As soon as the monkey touches the stairs, spray all of the monkeys with cold water. Every time a monkey attempts to climb the stairs, again spray all of the monkeys with cold water. Keep this up for several days.
3) Turn off the water. Even though the water is off, every time a monkey attempts to climb the stairs, the other monkeys will prevent it even though no water sprays them.
4) Remove one of the monkeys from the cage and replace it with a new one. The new monkey sees the banana and wants to climb the stairs. To his horror, all of the other monkeys attack him. After another attempt and attack, he realizes that if he attempts to climb the stairs for the banana, he will be assaulted.
5) Remove another of the original five monkeys and replace it with a new one. The new monkey goes to the stairs and is attacked. The previous newcomer takes part in the punishment with enthusiasm.
6) Replace the third original monkey with a new one. The new one makes it to the stairs and is attacked as well. Two of the four monkeys that beat him have no idea why they were not permitted to climb the stairs nor why they are participating in the beating of the newest monkey.
7) After replacing the fourth and fifth original monkeys, all the monkeys which have been sprayed with cold water have been replaced. Nevertheless, no monkey ever again approachethe stairs.
Why not?
Because that's the way it's always been done around here!
2) As soon as the monkey touches the stairs, spray all of the monkeys with cold water. Every time a monkey attempts to climb the stairs, again spray all of the monkeys with cold water. Keep this up for several days.
3) Turn off the water. Even though the water is off, every time a monkey attempts to climb the stairs, the other monkeys will prevent it even though no water sprays them.
4) Remove one of the monkeys from the cage and replace it with a new one. The new monkey sees the banana and wants to climb the stairs. To his horror, all of the other monkeys attack him. After another attempt and attack, he realizes that if he attempts to climb the stairs for the banana, he will be assaulted.
5) Remove another of the original five monkeys and replace it with a new one. The new monkey goes to the stairs and is attacked. The previous newcomer takes part in the punishment with enthusiasm.
6) Replace the third original monkey with a new one. The new one makes it to the stairs and is attacked as well. Two of the four monkeys that beat him have no idea why they were not permitted to climb the stairs nor why they are participating in the beating of the newest monkey.
7) After replacing the fourth and fifth original monkeys, all the monkeys which have been sprayed with cold water have been replaced. Nevertheless, no monkey ever again approachethe stairs.
Why not?
Because that's the way it's always been done around here!
Friday, May 18, 2012
Six Negative Listening Patterns #6 The Advice Giver
1. The Faker-All the outward signs are there: nodding, makine eye contact, and giving the occasional uh huh. However, the faker isn't concentrating one the speaker. His mind is elsewhere.
2. The Interrupter-doesn't allow the speaker to finish and doesn't ask clarifiying questions or seek more information from the speaker. He too is anxious to speak his words and shows little concern from the speaker.
3. The Intellectual or Logical Listener- This person is always trying to interpret what the speaker is saying and why. He is judging the speaker's words and trying tofit them into his logic box. He rarely asks about the underlying feeling or emotion attached to a message.
4. The Happy Hooker-The happy hooker uses the speaker's words only as a way to get to his message. When the speaker says something, and frankly, it could be anything, the happy hooker steals the focus and then changes to his own point of view, opinion, story, or facts. Favorite hooker lines are, "Oh, that's nothing, here's what happened to me"... "I remember when I was"...
5. The Rebuttal Maker-These listeners only listen long enough to make a rebuttal. His point is to use the speakers "words against him". At his worst, he is argumentative and wants to prove you wrong. At the least, the person always wants to make the speaker see the other point of view.
6. The Advice Giver-Giving advice is sometimes helpful, however, at other times, this behavior interferes with good listening, because it does not allow the speaker to fully articulate his feelings or thoughts; it doesn't help the speaker solve his own problems; it prohibits venting; it could also belittle the speaker by minimizing his concern with a quick solution. Well-placed advice is an important function of a salesperson. However, advice given to quickly and at the wrong time is a turnoff to the speaker.
Thursday, May 17, 2012
Six Negative Listening Patterns #5 The Rebuttal Maker
1. The Faker-All the outward signs are there: nodding, makine eye contact, and giving the occasional uh huh. However, the faker isn't concentrating one the speaker. His mind is elsewhere.
2. The Interrupter-doesn't allow the speaker to finish and doesn't ask clarifiying questions or seek more information from the speaker. He too is anxious to speak his words and shows little concern from the speaker.
3. The Intellectual or Logical Listener- This person is always trying to interpret what the speaker is saying and why. He is judging the speaker's words and trying tofit them into his logic box. He rarely asks about the underlying feeling or emotion attached to a message.
4. The Happy Hooker-The happy hooker uses the speaker's words only as a way to get to his message. When the speaker says something, and frankly, it could be anything, the happy hooker steals the focus and then changes to his own point of view, opinion, story, or facts. Favorite hooker lines are, "Oh, that's nothing, here's what happened to me"... "I remember when I was"...
5. The Rebuttal Maker-These listeners only listen long enough to make a rebuttal. His point is to use the speakers "words against him". At his worst, he is argumentative and wants to prove you wrong. At the least, the person always wants to make the speaker see the other point of view.
Wednesday, May 16, 2012
Six Negative Listening Patterns #4 The Happy Hooker
1. The Faker-All the outward signs are there: nodding, makine eye contact, and giving the occasional uh huh. However, the faker isn't concentrating one the speaker. His mind is elsewhere.
2. The Interrupter-doesn't allow the speaker to finish and doesn't ask clarifiying questions or seek more information from the speaker. He too is anxious to speak his words and shows little concern from the speaker.
3. The Intellectual or Logical Listener- This person is always trying to interpret what the speaker is saying and why. He is judging the speaker's words and trying tofit them into his logic box. He rarely asks about the underlying feeling or emotion attached to a message.
4. The Happy Hooker-The happy hooker uses the speaker's words only as a way to get to his message. When the speaker says something, and frankly, it could be anything, the happy hooker steals the focus and then changes to his own point of view, opinion, story, or facts. Favorite hooker lines are, "Oh, that's nothing, here's what happened to me"... "I remember when I was"...
Tuesday, May 15, 2012
Six Negative Listening Patterns #3 The Intellectual
2. The Interrupter - The interrupter doesn't allow the speaker to finish and doesn't ask clarifing questions or seek more information from the speaker. He is too anxious to speak his words and show little concern from the speaker.
3. The Intellectual or Logical Listener- This person is always trying to
interpret what the speaker is saying and why. He is judging the speaker's words and trying to fit them into his logic box. He rarely asks about the underlying feeling or emotion attached to a message.
Six Negative Listening Patterns
1. The Faker- All the outward signs are there: nodding, making eye contact,
and giving the occasional uh huh. However, the faker isn't concentrating
on the speaker. His mind is elsewhere.
Monday, May 14, 2012
Six Negative Listening Patterns #2 The Interrupter
1. The Faker- All the outward signs are there: nodding, making eye contact, and giving the occasional uh huh. However, the faker isn't concentrating on the speaker. His mind is elsewhere.
2. The Interrupter - The interrupter doesn't allow the speaker to finish and doesn't ask clarifying questions or seek more information from the speaker. He is too anxious to speak his words and shows little concern
from the speaker.
Six Negative Listening Patterns
Friday, May 11, 2012
Six Negative Listening Patterns #1 The Faker
1. The Faker- All the outward signs are there: nodding, making eye contact,
and giving the occasional uh huh. However, the faker isn't concentrating
on the speaker. His mind is elsewhere.
Thursday, May 10, 2012
Observation of a typical Inet Department
Having spent the past 9 years working around the country in several hundred dealerships of various makes and models have seen some consistent mindsets from BDC/Inet Managers accross the country.
-They feel that "their customers" are different
"They are not, research has proven this a fact"
-They don't want to give a price
"We already do in the Paper, Radio and on our Web-Site"
-They don't want to give alternatives
"Customers do not generally buy the vehicle they inquire about"
-They don't read their own emails to ensure they make common sense
"Customer picks a specific unit and we ask what color and equipment"
-They prejudge a lead, no phone number
"It's a bad lead so it does not the the attention it should"
-The tools/technology is not working
"We have not set up correctly"
-I have a process
"You may have a process, but is it followed"
-I have an LMT (lead management tool) to answer my leads
"I don't want automatic emails to go out so that I can touch each one"
"What if we send the wrong message"
This kind of mindset has been around for some time.
Here is the bottom line-"Customers are smarter on-line now than ever before". They are looking for information-"Give it to them".
If you don't they will and do go somewhere else.
-They feel that "their customers" are different
"They are not, research has proven this a fact"
-They don't want to give a price
"We already do in the Paper, Radio and on our Web-Site"
-They don't want to give alternatives
"Customers do not generally buy the vehicle they inquire about"
-They don't read their own emails to ensure they make common sense
"Customer picks a specific unit and we ask what color and equipment"
-They prejudge a lead, no phone number
"It's a bad lead so it does not the the attention it should"
-The tools/technology is not working
"We have not set up correctly"
-I have a process
"You may have a process, but is it followed"
-I have an LMT (lead management tool) to answer my leads
"I don't want automatic emails to go out so that I can touch each one"
"What if we send the wrong message"
This kind of mindset has been around for some time.
Here is the bottom line-"Customers are smarter on-line now than ever before". They are looking for information-"Give it to them".
If you don't they will and do go somewhere else.
Wednesday, May 9, 2012
Pay Per Click-Success Story
Mercedes-Benz Dealership Drives 200+ Website Leads Per Month With "Pay Per Click" (PPC)
Mercedes-Benz Dealership Drives 200+ Website Leads Per Month With PPC
A Mercedes-Benz dealership, who is part of a large auto group in North Carolina, invested in online Pay Per Click (PPC) advertising with ReachLocal in November 2010. Their goal was to reach potential car buyers in their metro region, and to win business that might otherwise buy a vehicle from a competitive Mercedes-Benz dealership, or buy another Make of vehicle altogether.The dealership worked closely with their Internet Marketing Consultant to build out a comprehensive list of keywords that a car buyer might use in searching the web for a vehicle. This list included every model of new and used vehicle they sell, as well as competitive keywords that might attract other buyers online. Their final keyword list was comprised of hundreds of keywords, both stand alone, and those paired with the major city names their customers likely come from.
Text ads were created to describe the dealership’s strengths and to create a compelling “call to action”. Effective text ads work by attracting the right searchers, and deterring the wrong ones. These ads were then mapped to the appropriate pages within the dealership’s website so that the searchers experience was seamless.
Once all of the elements of the PPC program were created, ReachLocal implemented them across 98% of where people search, including Google, Yahoo!, Bing, AOL and Ask. Tracking was set in place to identify any phone call lead that came in through the campaign, as well as any email or request for more information.
The program ran for 12 months, averaging 157 inbound leads per month for the dealership. After the first 12 months, they were so pleased with the performance that they increased their budget. After the budget increase, they experienced an average of 220 inbound leads per month. This averaged out to be an $11 - $12 cost per lead. Not only was the volume of leads impressive, but they were also highly qualified leads. People searching online for a vehicle are doing their research and have a better idea of what they want when they do make contact. So the leads that came in through their PPC program were better quality than those they were receiving from offline forms of advertising.
The Mercedes-Benz dealership not only grew their own PPC program, they also expanded to create similar programs for the other dealerships within their automotive group. Currently their entire group is advertising online with ReachLocal to generate qualified, inbound auto leads.
To learn more about how you can implement a successful online PPC program for your dealership, Respond to this post-
Tuesday, May 8, 2012
Do you have the right Internet person?
Fire Your Internet Sales Manager - Sean V. Bradley - AutoSuccess May 2012
Fire Your Internet Sales Manager
I know I am going to get a lot of heat on this article, but it has to be said. I have worked with thousands of dealerships over the years and there have been numerous reasons given for mediocrity, and even failure. In the beginning of automotive Internet sales in the late 1990s, it was a novelty and an incremental business, but most dealerships were not able to truly harness it and make it a major profit center. However, over the years and through evolution of the automotive sales industry, and the country as a whole, there has been a lot of change — change in how people are researching, shopping, making decisions and ultimately buying a vehicle. There has even been change inside our industry by dealer principals, GMs and sales consultants. It seems that dealers are getting it. They understand that Internet sales, business development, digital marketing, and social media are all important.What I am seeing now is a scary pattern emerging. A lot of dealerships are not maximizing on opportunities right in front of them because they do not have the right person in place. The Internet sales manager or BDC director that they have in place is the wrong person for the position, and they are hurting the dealership! Here are some problems I’ve seen at dealerships:
• A computer geek in the position who is not an automotive professional. There is nothing wrong with being a geek. I have a problem if they have no idea how to sell a car, and don’t have the respect of their team and employees. They can’t motivate and drive the department to success.
• An IT professional is the head of an Internet sales department or business development center. Just because they are good at fixing computers or understanding technology does not necessarily make them the best choice to run a million-dollar sales department. “Internet sales” is still sales.
• Instead of terminating a sales consultant from the showroom floor, they are given a “second chance” running the Internet sales department. I don’t get this one at all. If someone can not be effective on the showroom floor, why would you have that person be the head of a department where 92 percent of Americans go before they ever step foot into your dealership?
• A sales consultant is promoted from the showroom to running the Internet department. Please understand just because someone can sell a car does not mean they can run a department, let alone an Internet sales or business development department. Just because they can sell cars does not mean they are capable of being a manager or a leader. There are a lot of successful sales consultants who sell 20 or 30 cars per month, but don’t work well with others. They have no concept of interdependence.
• There is no Internet sales manager/BDC director at all. That is just bad, and again, makes no sense whatsoever. When 92 percent of people are going online, there needs to be major attention to this area.
• A dealership’s manager also manages the Internet department. I have seen it all, my friends. The dealer principal or general manager takes on the Internet department as an “additional” responsibility instead of having a dedicated manager, or they dump the responsibility of the Internet department onto the GSM or sales manager. This is not a viable solution.
Remember Basic Math
The average dealership in the United States delivers fewer than 100 units per month. But the average dealership has:
• A GM or GSM
• One to two sales managers (new car/used car), or “closers”
• An F&I manager
• 10 Sales Consultants
If you want your Internet or business development department to deliver units, you are going to need the right Internet manager or BDC director.
Yes, you might need to fire your current Internet sales manager or BDC director. You might have been thinking about doing it for months now but weren’t sure. Let me make it easier for you.
Think of your current Internet sales manager or BDC director:
• Are they a family member or in a relationship with anyone else in the dealership?
• Do they have any automotive sales or management experience?
• Do they have an aversion to the phone?
• Do they have the ability to take a “TO” from their employees, sales consultants, appointment setters, etc?
• Do they have the ability or desire to proactively “TO”?
• Do they have the respect of their team (or the dealership for that matter)?
• Can they, or do they, lead by example?
• Do they train their team? Do they know how to train their team?
• Do they have “one on ones” with their team?
• Do they know how to project and forecast, and not merely guess and hope?
• Are they rude and or mean to their team or their customers?
• Do they have Standard Operating Procedures (S.O.P.s), or do they just “wing it”?
• Can they desk a deal?
If you are reading this and you are a dealer or GM, do this calculation before you open the showroom tomorrow:
Look at your electronic leads, phone leads and walk-in leads. Say your electronic and phone leads are 70 percent or greater of all leads. Now look at your manager running your Internet or business development department. Are you comfortable with them in charge of 70 percent of your opportunities? If not, make the change today. If you can’t promote that person as your nest general sales manager, you have the wrong person in place.
If you would like a free personalized analysis of your Internet Sales Manager, contact me at the email below with “ISM” as the subject line.
Sean V. Bradley is the founder and CEO of Dealer Synergy, a nationally recognized training and consulting company in the automotive industry. He can be contacted at 866.648.7400, or by e-mail at
sbradley@autosuccessonline.com.
Monday, May 7, 2012
Is the phone mis-used at your dealership?
"The Phone is the MOST Misused Resource at a Car Dealership" Article first published in Digital Dealer Magazine, Sean V. Bradley - CEO of Dealer Synergy
http://www.dealersynergy.com/
http://www.internetsales20group.com/
First Published in Digital Dealer Magazine March 2007
Hello, Can you Hear Me Now?
The phone is one of the most misused opportunities in a dealership.” I was actually told that about a decade ago when I went through my first phone sales training class. The truth is that it still applies today. Sometimes it takes forever for someone to even answer the phone and from there it gets bounced from the receptionist to the salesperson and finally to a manager. In most cases like that, the prospect abandons the call out of exasperation. To make matters even worst, when a salesperson or Internet/BDC rep gets a potential customer on the phone, he never even gives his name, asks the prospect for his name or builds value in himself and the dealership.
Let me give you a great example. I was recently working with a franchised dealer in Kentucky for a week of training on business development and reviewing the dealership’s phone process through role playing. I was stunned when we engaged our role-play because the manager of the department was ignoring my questions, being vague and personifying the stigma of an old school car salesperson. I corrected her and started to teach her the proper methods and she further surprised me by explaining that she felt that what she was doing was wrong, but was trained to do so. She went on to tell me that the previous training company had told them to follow the scripts and ignore the prospects. She also said that the trainer actually sat in class and said no matter what the customer asks, ignore him and keep going on with your script. Knowing that trainers are teaching this is very disturbing to me. I want to clear up some things and give you all some very powerful information about phone sales and statistics based on our research and experiences in the field:
• More than 80 percent of the time Internet or sales consultants don’t ask for the name and number of the caller
• Seventy-eight percent of the time they do not attempt to make an appointment with the prospect
• More than 70 percent of the time the sales consultant didn’t qualify the prospect properly. Some might have asked questions about the vehicle, but very rarely asked the prospect about wants, wishes and expectations other than the vehicle
• More than 85 percent of the time the Internet or sales consultants did not properly identify themselves or ask the customers to write down whom they should ask for when they get into the dealership
• More than 70 percent of phone ups are not logged into an ILM or CRM properly or even logged in at all, which means they are never followed up on
The bottom line is there are steps to a sale – any sale. You need an opportunity to do business. You need to get someone to like you, trust you and believe you. If that occurs, they will buy from you (or at the very least come in for an appointment).
If you want to be successful at selling cars you need to master your phone skills. And if you want to maximize your Internet department, special finance department or business development center, then you absolutely need to not only get control over your phones, you need to master them.
You need to remember several things:
• There is a science of communication…55 percent of communication is visual perception and body language. Thirty-eight percent of communication is auditory stimulation and inflection of tone. Finally, only 7 percent of communication is conveyed through text…the words we use.
• That means you need to have a solid plan of how you are going to engage your prospect. You need to have an escalation protocol; meaning if there is only 45 percent (meaning 38 percent inflection of tone and 7 percent in words that we use) of communication on the phone, your main focus is to escalate that relationship as fast as possible to the next stage…the appointment. So, you should not be focused on selling the vehicle over the phone. You should focus on selling the appointment. The vehicle “selling” should be done in your environment, when you can conduct a full product presentation and the demo drive. You need to get in front of the prospect to start building rapport.
• You should have a solid incoming phone call process. Following is an example.
Incoming call script
Dealership rep: “Thank you for calling ABC Motors, Sean speaking… are you calling about our sale?”
*You want to properly greet the prospect on the phone and set the stage. Remember, you only have one chance to make a first impression. Right from the onset you are setting the tone for the call. By asking the question, “Are you calling about the sale?” you are finding out why the prospect is calling or from where they are calling.
Prospect: “No, I am not…is there a sale going on?”
Dealership rep: “Absolutely! We have several sales going on. (Make sure you have a list of current sales or promotions handy.) Are you looking for a new vehicle or a pre-owned vehicle?”
*This is an opportunity to create some excitement…sales is about transference of energy. If you aren’t excited, why should your prospect be?
Prospect: “A used car probably.”
Dealership rep: “Great, which one of our sales were you calling in on?”
* Now is the time you are going to find out exactly from where they are calling. This is the time where you find out where your ad dollars were successful.
Prospect: “I saw your ad in the Auto Shopper magazine on that pre-owned ‘05 Suzuki Grand Vitara.”
Dealership rep: “That vehicle is definitely available… your name is…? And how do spell your last name?”
* This is very important; you need to ask his name. Some people might go for the phone number too, but a lot of people on the phone are skeptical about giving the phone number out so quickly. I think it’s best not to go for it this early in the game. Getting a name is a great start. Now you can use the prospect’s name in the conversation and make the experience more personal.
Prospect: “Dave A-D-A-M-S”
Dealership rep: “Dave, just so I know… besides availability, what else is important to you in purchasing your next vehicle?”
* This is so important. You are going to qualify your prospect here. Most sales are not made because the salesperson was on the wrong car and the prospect’s “wants, needs or expectations” weren’t met. A salesperson’s ultimate goal should be to exceed a customer’s expectation, but the fact is you can never exceed a customer’s expectations if you first can’t identify their wants wishes and expectations.
Let the prospect tell you what it is going to take to earn his business. Let him give you all the details to assist you in closing the sale later. Remember what Dr. Stephen Covey says… “Seek first to understand before being understood.”
Prospect: “I was looking for the best price.”
* It doesn’t matter what they say, meet their expectations. Make sure they know you are there to help them. Then transition to your value package proposition (meaning sell, sell, sell your dealership). Show them why they should do business with you.
Dealership rep: “Dave, how about this… If I wasn’t able to get you the best price… I would never expect you to purchase a vehicle from me, OK?”
Prospect: “OK.”
Dealership rep: “Dave, with that said… can I tell you what else we do here to go above and beyond for our customers?”
* This is again an opportunity for you to create excitement. This is the part where you can exceed their expectations. If they were “expecting” anything else, they would have mentioned it previously. By this time we have properly qualified our prospect, created rapport, and met their expectations. Now we can go for our “value package.”
Prospect: “Absolutely!”
Dealership rep: “Here at ABC Motors we have created a special value program that includes:
• Free delivery to your home or office
• Rewards / loyalty program
• Tires for life
• Free oil changes
• Price guarantee / price protection
• Loaner cars
• Entry into our drawing (for just coming in for an appointment)”
* You can use anything here… whatever your dealership does as its “differentiator.”
Dealership rep: “How does that sound, Dave?”
* This is your trial close.
Prospect: “Wow… are you serious?”
Dealership rep: “Absolutely. When is the best time today for you to come in – afternoon or evening?”
*That is the close. Set the appointment on the quarter hour. Say something like, “Which is better, 3:15 or 4:15pm?” Appointments set on the quarter hour have a better show ratio.
Sales representative should close with asking for the prospect’s cell phone number and e-mail address, explaining that if something changes they can get in touch with the prospect and they will send an e-mail confirmation with directions for the appointment. It is important to obtain this for follow-up with the prospect. I hope you all realize how powerful the phones are… master your craft.
Sean V. Bradley
http://www.internetsales20group.com/
First Published in Digital Dealer Magazine March 2007
Hello, Can you Hear Me Now?
The phone is one of the most misused opportunities in a dealership.” I was actually told that about a decade ago when I went through my first phone sales training class. The truth is that it still applies today. Sometimes it takes forever for someone to even answer the phone and from there it gets bounced from the receptionist to the salesperson and finally to a manager. In most cases like that, the prospect abandons the call out of exasperation. To make matters even worst, when a salesperson or Internet/BDC rep gets a potential customer on the phone, he never even gives his name, asks the prospect for his name or builds value in himself and the dealership.
Let me give you a great example. I was recently working with a franchised dealer in Kentucky for a week of training on business development and reviewing the dealership’s phone process through role playing. I was stunned when we engaged our role-play because the manager of the department was ignoring my questions, being vague and personifying the stigma of an old school car salesperson. I corrected her and started to teach her the proper methods and she further surprised me by explaining that she felt that what she was doing was wrong, but was trained to do so. She went on to tell me that the previous training company had told them to follow the scripts and ignore the prospects. She also said that the trainer actually sat in class and said no matter what the customer asks, ignore him and keep going on with your script. Knowing that trainers are teaching this is very disturbing to me. I want to clear up some things and give you all some very powerful information about phone sales and statistics based on our research and experiences in the field:
• More than 80 percent of the time Internet or sales consultants don’t ask for the name and number of the caller
• Seventy-eight percent of the time they do not attempt to make an appointment with the prospect
• More than 70 percent of the time the sales consultant didn’t qualify the prospect properly. Some might have asked questions about the vehicle, but very rarely asked the prospect about wants, wishes and expectations other than the vehicle
• More than 85 percent of the time the Internet or sales consultants did not properly identify themselves or ask the customers to write down whom they should ask for when they get into the dealership
• More than 70 percent of phone ups are not logged into an ILM or CRM properly or even logged in at all, which means they are never followed up on
The bottom line is there are steps to a sale – any sale. You need an opportunity to do business. You need to get someone to like you, trust you and believe you. If that occurs, they will buy from you (or at the very least come in for an appointment).
If you want to be successful at selling cars you need to master your phone skills. And if you want to maximize your Internet department, special finance department or business development center, then you absolutely need to not only get control over your phones, you need to master them.
You need to remember several things:
• There is a science of communication…55 percent of communication is visual perception and body language. Thirty-eight percent of communication is auditory stimulation and inflection of tone. Finally, only 7 percent of communication is conveyed through text…the words we use.
• That means you need to have a solid plan of how you are going to engage your prospect. You need to have an escalation protocol; meaning if there is only 45 percent (meaning 38 percent inflection of tone and 7 percent in words that we use) of communication on the phone, your main focus is to escalate that relationship as fast as possible to the next stage…the appointment. So, you should not be focused on selling the vehicle over the phone. You should focus on selling the appointment. The vehicle “selling” should be done in your environment, when you can conduct a full product presentation and the demo drive. You need to get in front of the prospect to start building rapport.
• You should have a solid incoming phone call process. Following is an example.
Incoming call script
Dealership rep: “Thank you for calling ABC Motors, Sean speaking… are you calling about our sale?”
*You want to properly greet the prospect on the phone and set the stage. Remember, you only have one chance to make a first impression. Right from the onset you are setting the tone for the call. By asking the question, “Are you calling about the sale?” you are finding out why the prospect is calling or from where they are calling.
Prospect: “No, I am not…is there a sale going on?”
Dealership rep: “Absolutely! We have several sales going on. (Make sure you have a list of current sales or promotions handy.) Are you looking for a new vehicle or a pre-owned vehicle?”
*This is an opportunity to create some excitement…sales is about transference of energy. If you aren’t excited, why should your prospect be?
Prospect: “A used car probably.”
Dealership rep: “Great, which one of our sales were you calling in on?”
* Now is the time you are going to find out exactly from where they are calling. This is the time where you find out where your ad dollars were successful.
Prospect: “I saw your ad in the Auto Shopper magazine on that pre-owned ‘05 Suzuki Grand Vitara.”
Dealership rep: “That vehicle is definitely available… your name is…? And how do spell your last name?”
* This is very important; you need to ask his name. Some people might go for the phone number too, but a lot of people on the phone are skeptical about giving the phone number out so quickly. I think it’s best not to go for it this early in the game. Getting a name is a great start. Now you can use the prospect’s name in the conversation and make the experience more personal.
Prospect: “Dave A-D-A-M-S”
Dealership rep: “Dave, just so I know… besides availability, what else is important to you in purchasing your next vehicle?”
* This is so important. You are going to qualify your prospect here. Most sales are not made because the salesperson was on the wrong car and the prospect’s “wants, needs or expectations” weren’t met. A salesperson’s ultimate goal should be to exceed a customer’s expectation, but the fact is you can never exceed a customer’s expectations if you first can’t identify their wants wishes and expectations.
Let the prospect tell you what it is going to take to earn his business. Let him give you all the details to assist you in closing the sale later. Remember what Dr. Stephen Covey says… “Seek first to understand before being understood.”
Prospect: “I was looking for the best price.”
* It doesn’t matter what they say, meet their expectations. Make sure they know you are there to help them. Then transition to your value package proposition (meaning sell, sell, sell your dealership). Show them why they should do business with you.
Dealership rep: “Dave, how about this… If I wasn’t able to get you the best price… I would never expect you to purchase a vehicle from me, OK?”
Prospect: “OK.”
Dealership rep: “Dave, with that said… can I tell you what else we do here to go above and beyond for our customers?”
* This is again an opportunity for you to create excitement. This is the part where you can exceed their expectations. If they were “expecting” anything else, they would have mentioned it previously. By this time we have properly qualified our prospect, created rapport, and met their expectations. Now we can go for our “value package.”
Prospect: “Absolutely!”
Dealership rep: “Here at ABC Motors we have created a special value program that includes:
• Free delivery to your home or office
• Rewards / loyalty program
• Tires for life
• Free oil changes
• Price guarantee / price protection
• Loaner cars
• Entry into our drawing (for just coming in for an appointment)”
* You can use anything here… whatever your dealership does as its “differentiator.”
Dealership rep: “How does that sound, Dave?”
* This is your trial close.
Prospect: “Wow… are you serious?”
Dealership rep: “Absolutely. When is the best time today for you to come in – afternoon or evening?”
*That is the close. Set the appointment on the quarter hour. Say something like, “Which is better, 3:15 or 4:15pm?” Appointments set on the quarter hour have a better show ratio.
Sales representative should close with asking for the prospect’s cell phone number and e-mail address, explaining that if something changes they can get in touch with the prospect and they will send an e-mail confirmation with directions for the appointment. It is important to obtain this for follow-up with the prospect. I hope you all realize how powerful the phones are… master your craft.
Sean V. Bradley
Friday, May 4, 2012
Travel Outside of the Country
When dressing for travel for business or pleasure in foregin countries do not dress bright, cover your arms and try to fade into the culture.
Thursday, May 3, 2012
Fact to Remember
We have all used P.S. on a note or letter to drive a point or a reminder.
On a cover sheet P.S. is the first thing gennerally looked at and gives a lasting impression.
On a cover sheet P.S. is the first thing gennerally looked at and gives a lasting impression.
Wednesday, May 2, 2012
Just a fact
I was assigned to the USS Lewis and Clark SSBN 644 on the following historic dates:
*June 1981 fired 4 C-3 Posiden Missles
*July 1981 entering the Newport News Shipyard for refueling
This submarine was active during the cold war era.
RM2/SS Marvel
(Radioman-Petty Officer 2nd Class)
*June 1981 fired 4 C-3 Posiden Missles
*July 1981 entering the Newport News Shipyard for refueling
This submarine was active during the cold war era.
RM2/SS Marvel
(Radioman-Petty Officer 2nd Class)
Tuesday, May 1, 2012
The Illusion of Attention
You don't lose your attention when answering your phone with your hands free device while driving.
The Truth: Distraction comes from mental load of conversation not holding the phone.
The Truth: Distraction comes from mental load of conversation not holding the phone.
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