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Re-elect George W. Bush, page 8




                                                                              .biz

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756 South 1st Street                                  PRSRT STD
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         Ziegler Supersystems • www.ZieglerSuperSystems.com • 800-726-0510
                   Call today to speak to a Ziegler Representative
          In-Store Consulting - Management Seminars - Video Sales Training - Support Products
I N S I D E
 8           Re-elect George W. Bush                                                                                                                                                                      Jerry Reynolds
 9           Don’t Miss the Good Life                                                                                                                                                                                        Zig Ziglar
10           How to Convert Outside Finance Customers                                                                                                                                                   George Jackson
11           Leadership Assessment                                                                                                                                                                   Sean WolÞngton
12           Transforming Bad Habits                                                                                                                                                                                 Brian Tracy
14           Communication and Individual Management                                                                                                                                                             Carol Martin
18           Dealers Generate $500k in
             Additional ProÞts Last Month                                                                                                                                                                          Patrick Luck
20           The Silent Sell                                                                                                                                                                                           Patti Wood
22           OFAC Regulations                                                                                                                                                                           Fran McAllister
23           Lead Volume Skyrockets More Than 450 Percent                                                                                                                                                   David Koehler
24           Houston, We Have a Problem                                                                                                                                                                         Michael York
25           Your Sales Will Increase                                                                                                                                                                                   Steve Hiatt
26           Follow Up Every Unsold Prospect (Phone Script)                                                                                                                                                            Jim Adams
27           Service Standards                                                                                                                                                                                         Joe Takash
28           How to Overcome Call
             Reluctance and Increase Sales                                                                                                                                                                                  Bill Gager


                                                                                                                                            Psalms 37: 29-34
                                                                                                                                            The righteous shall possess the land, and dwell upon it
                                                                                                                                            for ever.
                                                                                                                                            The mouth of the righeous utters wisdom, and his
                                                                                                                                            tongue speaks justice.
                                                                                                                                            The law of his God is in his heart; his steps do not slip.

756 South 1st Street, Suite 202 Louisville, Kentucky 40202                                                                                  The wicked watches the righeous. and seek to slay him.
       ! Toll Free: 877.818.6620 " Facsimile: 502.588.3170                                                                                  The Lord will not abandon him to his power, or let him
                                                                                                                                            be condemned when he is brought to trail.
Patrick Luck, Editor & Publisher                                     Thomas Williams, Creative Director
• pluck01@autosuccess.biz                                               • twilliams03@autosuccess.biz                                       Wait for the Lord, and keep to his way, and he will
Susan Goodman, Vice President                                         Courtney Hill, Advertising Services
                                                                                                                                            exhalt you to posses the land; you will look on the
• sgoodman02@autosuccess.biz                                                 • chill04@autosuccess.biz                                      destruction of the wicked.
                                                                        Amy Stuber, Advertising Services
Success Driven Solutions                                                  • astuber05@autosuccess.biz


AutoSuccess Magazine is published monthly at 756 South First Street, Suite 202, Louisville, Kentucky, 40202; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or
info@autosuccess.biz.Subscriptionrateis$75peryear.AutoSuccesswelcomesunsolicitededitorialsandgraphics(notresponsiblefortheirreturn).Allsubmittededitorialsandgraphicsaresubjecttoeditingforgrammar,content,andpagelength.AutoSuccess
provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees.Always confer with legal counsel before implementing changes in procedures.
© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess
may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA.
Postmaster: Send address changes to AutoSuccess Magazine, 756 South First Street, Suite 202, Louisville, Kentucky 40202.
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EXPOSED
 Auto Dealer Speaks Out and Reveals the Raw Truth about That “Consultant –Trainer,” Mark Tewart,
                           Who advertises in this Magazine All the Time.
           This guy, Mark Tewart promises all sort of things to us car dealers – sales and management strategies for our dealerships that he “promises”
really pay off. Such as strategies that will increase sales without increasing your advertising. Ways to increase gross proÞt by $200 a car minimum. How
to reduce and eliminate water in used cars and so on. Every time I read one of his ads, I thought, “Who could be dumb enough to fall for this guy’s rap?”
Now, I’m going to tell you the raw truth about this guy and his ‘success secrets.’

          My name is Chad Hawkes; I live in Oklahoma with my wife and child. I went to college here and became a salesperson at a car dealership. I
was a struggling salesperson with little direction and not much of a future if my results stayed the same. I didn’t know what I was doing and was frustrated
everyday with the business. I needed a change and I needed it quick.

           One day our dealer hired a consultant and trainer named Mark Tewart who ran all these ads with these big claims. However, our dealer told
us he had known this Mark Tewart guy for several years going back to when he was a new manager at another dealership. Our dealer told us to hang on
to our hats because this guy Tewart was a Þreball with more real valid information on success in the car business than anyone he had ever seen and that
he wouldn’t have become a dealer before he was 30 years old without Mark Tewart.

           Most of what he taught us was so different from what we had ever seen, heard or been taught by other so-called experts. As we listened to
Mark’s information, we saw a whole different way to develop a high income career rather than just make a sale here and there. We heard sales skills,
people skills and life skills and found freedom from the cheapest price, roll around in the mud, bait-n-switch ugliness. Best of all we learned actual skills
to reengineer our business (managers and dealer as well as salespeople). I even looked in the mirror and saw Chad Hawkes differently. So, skeptical and
grateful at the same time, we left the workshop with a workbook and CD’s full of ideas.

           The next day I began to implement 10 different Mark Tewart strategies. Over the next couple of weeks, as I got them up and running, they all
surpassed my greatest expectations. Let me give you an idea of what I am talking about. My Þrst year of implementing Mark’s strategies, I became the
number one salesperson and my production tripled. I began to get my life in order as well. Every time Mark came to the dealership he taught me lessons
that made my whole life change for the better. After a period of big increases, I was promoted to manager and attended Mark’s Management workshops.
Once again, I was amazed at how much incredible information I got and how much it improved our dealerships sales and proÞts. Our little country
dealership, located in an economically challenged area had improved from 40 units a month to over 325 units and we had become on many months the
largest dealer of our brand in the state!

          Personally, I went from struggling to winning. I became the General Sales Manager and then bought my own dealership and now own two
dealerships before turning 30 years old. How, you ask, could such a thing happen? The answer, simply, is learning how real proven and effective sales
and management systems work, from the “master”, Mark Tewart. In spite of everything you hear about business being slower and tougher, my business
is booming. Just a couple of Mark’s strategies alone has allowed me to go from 40 used cars a month to over 120 a month operating out of a trailer!
Thanks to Mark’s ideas, systems, inspiration and encouragement I have two dealerships and have bought the ranch of my dreams for my family.

           What is important is that Chad Hawkes can sell a ton of vehicles, get plenty of referrals, is unaffected by competition and has ‘real’ systems
in place to realize a huge proÞt every month. I knew Mark had it Þgured out when after one consulting session he showed me over 40 ways to grow my
business and make more proÞt. He is brilliant. So here’s the raw truth about this Mark Tewart guy: Unlike most of the ‘pretend’ experts, he is a bona Þde
trainer-consultant and money making genius, who can do anything from tweaking to transforming your business, so you not only make a lot of money,
but you can make it a lot easier and more enjoyable than you can imagine.

Maybe you are already doing well already – but you could do better (some of Mark’s most ardent students make many millions per year). Maybe you
just don’t want to be sold something that’ll be a waste of your hard-earned money. About that you can relax. Mark guarantees his stuff.

          I’ve got over $1,000,000 reasons why you ought to investigate what Mark has to offer. What reasons do you have NOT to look at this?
And here’s how easy it is: Mark has prepared a straight-talk, detailed report – “HOW TO RECRUIT, HIRE AND TRAIN A DREAM TEAM OF
SALESPEOPLE,” which you can have absolutely FREE of cost or obligation. Get it, read it and decide for yourself whether or not you want to get in on
Mark’s information. It’s that simple. To get your FREE Special Report go to www.tewart.com/specialreport or call our 24 hr. hotline at 1.866.432.2468.
You will hear a brief, free recorded message and be able to leave your name and address, so your report can be mailed to you. Or write “report” on your
business card or letter head and pop it in the fax machine or email it. Mark’s fax number is 513.934.4588 and his email address is info@tewart.com -
Either way, you will get his eye opening report rushed to you, free.

          By the way, I wasn’t paid a penny to write this about Mark. I am a car dealer just like you. I did this just as a way of saying thanks to Mark for
everything he’s done for me. And I am not the only person who feels this way. With your report, you’ll get a book of actual comments from some of the
over 10,000+ other salespeople, managers and dealers he has helped. Most like me are now making more money, with less hassle than ever before. More
business that we handle ßows in everyday… proÞtably. All we can say is this, “don’t envy us. Join us”.

Chad Hawkes, Hawkes Motors, Pryor, OK.

P.S. Please don’t get my number and call me. The last thing I need is a zillion phone calls asking me about Mark. I’ve said what I have to say right
here. What else could you possibly need to know? Instead, call 1.866.432.2468 and ask for your FREE SPECIAL REPORT today. You owe it to your
business.

                         visit www.tewart.com/specialreport for a Free Special Report or call

                                                                                  888 2 TEWART                                                283.9278
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Would you be interested in delivering 30 to 70+
units in four days at $3200 - $4500+ per retail?                     $175,000.00 Gross ProÞt on
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Would you like to turn aged inventory with no                        Look Forward to our Next Sale
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                                                                                                                            JerryReynolds
                         leadership solution



                                                                       Re-elect George W. Bush
                        It took 225 years for it   President Roosevelt, President Bush was            started. The war against terror is nowhere
                        to happen, but America     preparing us for war in that speech.               near finished and it’s clear that John Kerry is
                        lost its innocence on                                                         going to take us backwards.
                        September 11, 2001.        George W. Bush prepared us for war, a
                        The lives of every         different kind of war, a war that would not        The tax cuts initiated by President Bush are
                        American changed that      end soon, a war that would be fought in many       taking effect and the economy is improving.
day, and sadly it will never be the same. But it   different lands. Tears rolled down my eyes as      At no time has America been a safer place to
really started well before that.                   he said these words: “We will not tire, we will    be. The outlook for the future is extremely
                                                   not falter, and we will not fail.” For the first    bright, especially for those of us in business.
Most of us have forgotten that 241 Marines         time in ten days, I felt more at ease and I felt
died in Beirut in 1983. Ten years later the        like a proud American. We had a plan and we        Where we stand today is very reminiscent
World Trade Center was bombed in New               had a strong leader to carry out that plan. At     in many ways of the time right before the
York. Our embassies have been attacked             last, it appeared that America could go back       great Ronald Reagan was re-elected. Much
worldwide. It’s only been four years since         to work, back to our normal lives and back to      like President Bush’s first term, Mr. Reagan
the U.S.S. Cole was bombed. There are              smiling at each other.                             inherited an economy in decline. By the end
multiple examples of attacks against us and                                                           of Reagan’s first term, things were improving
our people.                                        September 21st, 2001 will remain in my             and he needed that second term to finish the
                                                   memory second only to September 11, 2001           job. President Bush finds himself in the same
Yet nothing shook our very foundations like        because it was the day our President changed       situation, except besides just overcoming a
the vision of huge 757 planes flying into           the world. His words were strong and more          spiraling economy; he’s had to overcome
the World Trade Center towers. We saw the          resolute than I had ever seen a President be.      the economic devastation of September 11,
pictures over and over again and America           His eyes told the entire story. It was clear to    2001.
wept, the unthinkable had happened. Our            the world that he was serious about winning
Pentagon was ablaze, planes were crashing          this war and that he would not give up until       I would be an advocate for President Bush
into fields and we felt an overwhelming need        the task was accomplished.                         without regard to who his Democratic
to be with our loved ones.                                                                            challenger is. Our major concern today has
                                                                                                      to be the security of our country. Another
The shock and disbelief lasted for days. Car                                                          attack within our borders like 9/11 could
sales came to a screeching halt as America
watched TV, loved on their families, and
                                                     By the end of                                    devastate America. Recent history has shown
                                                                                                      us that you cannot reason with terrorists.
searched for answers as to why this happened.
We needed answers and most of all we needed
                                                     Reagan’s Þrst                                    Saddam Hussein is a prime example of this.
                                                                                                      He was told repeatedly to open his country to
comfort and assurances that this would not           term, things                                     inspection for weapons and he refused. We

                                                     were improving
happen again.                                                                                         all know the world is a better place because
                                                                                                      Saddam is not in power, but what would
You find out who real leaders are when there
is a crisis. Shortly after 9/11 we learned that      and he needed                                    have happened if George Bush had backed
                                                                                                      down? We must have a strong leader that will
our President was decisive, dedicated, and
compassionate at the same time. His words
                                                     that second term                                 not back down. Force is the only thing our
                                                                                                      enemies can appreciate.
of comfort standing in the rubble that was the
World Trade Center not only brought comfort
                                                     to Þnish the job.                                In November, we have the clearest choice
to the people of New York, it brought comfort                                                         we’ve ever had and an opportunity to elect a
to a grieving America.                                                                                man that will protect us, that brings dignity
                                                   Many heroes emerged from the ashes of that         back to the White House, and a man that will
History shows that there is a defining moment       horrible day. We found out that the police         continue the job of improving our economy.
in every Presidency. I believe the defining         officers and fire fighters of New York City are       Nothing is more important to me than family,
moment in George W. Bush’s first term came          some of the finest and bravest in the world.        and I know that my family will be better off
on September 21, 2001. I will never forget         We found out that there were hundreds of           and safer if George W. Bush is re-elected. I
that speech or the effect it had on me. Ten        untold stories of the people of New York City      hope you’ll join me in giving him four more
days after the brutal attack, it seemed that       pulling together. We found out that a group of     years.
America had gone from sadness to anger. We         men stormed a plane over Pennsylvania and
needed the world to know that we were not          saved countless lives. And without doubt,
going to stand for this. We needed to know it      we found out that George W. Bush was the
ourselves.                                         right man for the job at the lowest point in
                                                   American history.
Sixty years earlier, Franklin Roosevelt stood
in the same room with a very similar message.      Today, we face a clear choice. Domestically        Jerry Reynolds is the Owner of
We had been attacked at Pearl Harbor and the       and abroad, we have found that George W.           Prestige Ford. He can be contacted at
President wanted the world to know that            Bush is a leader and we have to make sure          800.723.3158, or by email at
we were not going to sit by idly. Much like        he is re-elected to finish the things he has        jreynolds@autosuccess.biz.


   8                                                                                    subscribe today at www.autosuccess.biz
sts       ms        ls      fis       lr
                                                                                                                                   ZigZiglar
     sales and training solution



                                                                 Don’t Miss the Good Life
                        John    Jones       was    your motivation by reminding you that you        Well, there you have it. Three hints on how to
                        waiting for his flight      can do it! Your self worth will be enhanced      catch your 2:20 to Boston. If you implement
                        from New York to           and your confidence will be increased. We         these ideas, you will be more dangerous than
                        Boston. He stepped         sales people need all that we can get of those   you are now!
                        on the scales that         elements. This list can include things from
                        gave your “weight and      childhood to present time. You will find that     Zig Ziglar is the Chairman of the Board of
fortune.” He inserted his coin and out came        by making this list, you will recall that you    Ziglar Training Systems in Dallas, TX. He
his fortune: “You are John Jones, you weigh        possess the qualities and attributes necessary   can be contacted at 866.873.0026, or by
188 pounds, and you are going to catch the         for success.                                     email at zziglar@autosuccess.biz.
2:20 to Boston.” He was astounded and
surprised. He tried it again with the same
results. The fortune said, “Your name is still
John Jones, you still weigh 188 pounds,



                                                          DEALERS MUST BE
and you are still going to catch the 2:20 to
Boston.” He went into the restroom and
changed clothes and he tried it again. This
time the fortune said: “Your name is still John
Jones, you still weigh 188 pounds, but you



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                                                                            Larry John Wright, Inc.
put the ball in play 2,500 times. However, he
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                                                          1-800-821-5068
darkest moments! The lesson to be learned is
this: don’t give up… keep swinging.

3. Keep a “victory list.” You should make a
list - both mentally and physically - to remind
yourself of past successes. This will fuel

october 2004                                                                                                                                9
sts      ms        ls     fis       lr
                                                                                                                      GeorgeJackson
                              f&i solution

                                                                           How to Convert
                                                                Outside Finance Customers
                       “Hey George, I have       deduct and automatic withdrawals. By doing        boat. This cross-collateralization allows the
                       a customer for you,       so, they are giving up a great deal of financial   bank or credit union to reduce risk and tie up
                       and he wants to go        control, something I would advise against.        assets, making it difficult for a customer with
                       to his credit union.”     What happens if an unforeseen expense             some missed payments to secure financing
                       When some business        arises and the customer would like to defer       elsewhere. This is due to the fact that the
                       managers hear these       the payment a few days? With payroll              lending source could call the boat loan due
words, they immediately feel dejected, begin     deduct or automatic withdrawal, deferring         if the customer finances a vehicle elsewhere.
the turnover with a defeatist attitude, and      a payment cannot be done. Customers who           To find out if the banks and credit unions
expect to fail when attempting a conversion.     enjoy that convenience may find it is just as      you are competing with use this language,
Others hear these words and recognize an         easy to pay bills online. This alleviates the     you need to obtain a copy of the contract
opportunity to display their preparation,        need to write a check, address an envelope,       they use and read it thoroughly. You may be
product knowledge, and positive attitude.        or pay postage, and it still provides financial    surprised at what you find.
How you address this type of customer            control.
says a great deal about you to your sales                                                          We have a tendency to take for granted the
people and your sales managers. The best         Most customers do not realize that a contract     strength of our borrowing power with our
thing about a credit union or outside bank       signed at a dealership is an indirect loan and    best lenders. If you send 50 finance contracts
customer is that he/she already needs your       that a contract signed at a bank or credit        to your lenders every month at an average
service, and all you have to do is explain why   union is a direct loan. The difference can be     of $20,000 per contract, that results in $1
your lending sources are better than his/her     alarming. With an indirect loan, the vehicle      million worth of business sent to your lenders
lending source. You will be more successful      is the only collateral for the lender. The        every month. That equals $12 million per
if you understand and communicate the four       lender cannot secure any other assets from        year and $48 million over four years! This
major advantages your sources have over          the customer to reduce the risk. With a direct    is why we can usually get higher advances,
most credit unions or banks.                     loan, the credit union or bank can ask for        marginal applications approved, longer
                                                 and secure additional collateral as needed,       terms, and other benefits for customers. In
A lot of customers feel it is more convenient    often without the customer’s knowledge.           addition, our sources report to bureaus, and
to get approved at their own source, and that    Most indirect loans have contract language        that helps establish and maintain credit for
is not necessarily true. Most dealerships        that requires the customer to pledge his or       customers. Many credit unions and banks do
have software programs that download             her checking account, savings account, and        that as well, but not all do.
applications to multiple lenders. This allows    other deposits held by that same lender as
for quicker approvals, which leads to quicker    collateral. This is called Right of Offset.       Finally, sometimes the biggest advantage
deliveries. This means the customer does not     Additional language allows the direct lender      we have is the factory programs available
have to take time to drive someplace else, fill   to secure assets as security from other loans     to those with approved credit. While credit
out an application, drive back, and wait for     as security for the automobile loan. In other     unions can be very competitive with rates,
delivery. What could be more convenient than     words, if the customer has an existing loan       they usually can’t compete with the sub-
financing at the dealership? The customer         for a boat and enters into a new loan for         vented rates that have been available for the
is already there. Many customers like the        a truck, the boat is now collateral for the       past three years.
convenience of repaying the loan via payroll     truck, and the truck is now collateral for the
                                                                                                   Dealership financing has many advantages
                                                                                                   over outside financing. Despite this fact, you
                                                                                                   will still hear “no” more often than “yes.”

  Up Unit Sales via Referrals!
                                                                                                   However, stay positive and expect a success
                                                                                                   rate of 30-40%, which is a great average for

  Up Service Visits by 13x a person!
                                                                                                   a business manager to achieve. Give every
                                                                                                   attempt an honest effort because it is simply
  Would you like a cost effective way to increase your referrals?                                  a numbers game. You will never hit the level
                                                                                                   you want unless you try with everyone.
  Want to dramatically increase service visits you lose to
  Lube, Mufßer and Tire shops?
  Would you be interested in a program that pays for itself
  hundreds of times over?
  Call today for a FREE Sample!

  800.723.2590                                            AUTO
                                                            C   A   S   H   C   A   R   D    S
                                                                                                   George Jackson is the Director of
                                                                                                   F&I Training for American Financial &
                                                                                                   Automotive Services, Inc. He can be
                                                                                                   contacted at 866.280.0301, or by email at
                                                                                                   gjackson@autosuccess.biz.


  10                                                                                        visit us online at www.autosuccess.biz
sts      ms       ls        fis    lr
                                                                                                       SeanWolfington
                       leadership solution



                                                                 Leadership Assessment
                      The following is
                      a summary of the                         LEADERSHIP ASSESSMENT
                      difference     between
                      a “Manager” and a
                      “Great Leader”. You
                      can use this table to
determine which type of leader you are and
more importantly what type of leader you
want to be. This table will help you identify
where you are, where you want to be and
how you can close the gap. As you read the
table ask yourself which description matches
you the most and how you can improve who
you are and what you do. I hope this helps
you continue to grow and improve into the
leader you are made to be.

Sean WolÞngton is an Owner of BZ
Results.com. He can be contacted at
866.802.5753, or by email at
swolÞngton@autosuccess.biz.
                                                         Poor Manager                      Great Leader
                                                                              AT T I T U D E
                                                          Focuses on negative          •   Focuses on positive
                                                            Looks for mistakes         •   Looks for successes
                                                           Builds on weakness          •   Builds on strength
                                                                     Pessimist         •   Optimistic
                                                                     Know it all       •   Forever Student
                                                      Does not need to improve         •   Constantly learning and growing
                                                             Seeks recognition         •   Seeks to give recognition
                                                                      Inßexible        •   Flexible
                                                           Impatient with team         •   Patient with team
                                                                Quick to judge         •   Quick to understand
                                                       Seeks to be understood          •   Seeks to understand
                                                               Focuses on self         •   Focuses on others
                                                                        SelÞsh         •   Selßess servent

                                                                             AP P RO AC H
                                                                        Dominates      •   Motivates
  Register Now                                                       Administrates
                                                              Counts on controls
                                                                                       •
                                                                                       •
                                                                                           Innovates
                                                                                           Counts on people and trust
                                                                             Insults   •   Consults
      The Venetian                                                    Demoralizes
                                                 Negative feedback & language
                                                                                       •
                                                                                       •
                                                                                           Recognizes
                                                                                           Posititve feedback & language
       Hotel & Resort                                               Not accessible     •   Accessible
               Las Vegas,                                               Distracted     •   Attentive
           Nov 11 & 12                                                 Bad listener    •   Great listener
          Limited Seating                       Interested in telling their opinion    •   Interested in your opinion
                                                                         Re-Active     •   Pro-Active
           Call Now                                                        On seat     •   On feet
     800-849-4113                                           Wait for it to happen      •   Makes it happen
   www.autosuccess.biz


october 2004                                                                                                           11
sts       ms        ls      fis       lr
                                                                                                                                      BrianTracy
                         leadership solution



                                                                       Transforming Bad Habits
                        Your habits have been      independence, and success are life-enhancing.         but kept banging his nose on the glass. After
                        developed from early       They are the habits that have brought you             several hours, Seligman removed the glass.
                        childhood as the result    the success you enjoy today. The habits that          And what happened then? The dog, who
                        of things that you have    revolve around your fears, on the other hand,         was still hungry, sat only a few inches away
                        chosen to do, or not to    act as brakes on your potential. They hold you        from the food and never even attempted to
                        do. Your entire life is    back. They interfere with your success. They          eat it. The dog had learned to feel helpless.
the result of your past choices and decisions.     trip you up on a regular basis. They cause you        The dog had become so convinced that he
And like all of us, you probably have some         to sell yourself short and settle for far less than   was incapable of getting to the food that even
bad habits that have held you back from your       your potential.                                       when the obstacles were removed, he just sat
true potential. But here’s the good news: Since                                                          there with his stomach growling.
you are always free to choose, you can make        Dr. Martin Seligman, in his book, Learned
new choices and decisions today that will          Optimism, wrote about the chief psychological         There are dozens of experiments like this. In
determine what happens to you in the future.       phenomenon of modern life. He called it               every case, it is clear that animals, and human
                                                   “learned helplessness.” Based on his 25 years         beings for that matter, learn to feel helpless.
One of your main objectives in life is to          of research, he discovered that virtually every       They develop habits of thought that hold them
develop new habits and make them your              person has one or more areas where they feel          back from reaching their full potential.
masters, while at the same time overriding and     helpless and unable to do something that they
setting aside old habits that may be interfering   really want to do.                                    If someone were to tell you that you could
with your progress.                                                                                      learn to type 30, 40, or 50 words per minute by
                                                   Seligman’s research demonstrated how                  taking a typing course and practicing an hour
You have two major types of habits. You            animals can be trained to feel that they are          each day for the next few months, you would
have habits that revolve around your desires       helpless. In one example, he put a dog into           shrug your shoulders and say, “Of course!”
and you have habits that revolve around            a cage with a glass wall in the middle that           Everybody knows that you can acquire a
your fears. The habits that revolve around         separated the dog from a bowl of food. The            particular physical skill by learning how it is
your desires for health, happiness, financial       dog was hungry and tried to get at the food           done and then repeating it over and over again
                                                                                                         until it becomes automatic.

                                                                                                         But when it comes to mental habit patterns,
                                                                                                         most people are a little baffled. They don’t
                                                                                                         realize that you can learn mental habit patterns
                                                                                                         by following exactly the same process that
                                                                                                         you would use to learn physical habit patterns.
                                                                                                         And mental habit patterns will have a far
                                                                                                         greater impact on your life and happiness than
                                                                                                         any physical habit pattern ever could.

                                                                                                         Once you have recognized the old, negative
                                                                                                         habit patterns that do not serve your purposes,
                                                                                                         you can determine what new habit patterns
                                                                                                         you would like to adopt. Begin this process
                                                                                                         by looking around and determining the people
                                                                                                         that you admire the most, both living and
                                                                                                         dead. Ask yourself: What qualities do they
                                                                                                         have? Which of their characteristics do you
                                                                                                         most wish to have for yourself? Then make a
                                                                                                         plan to incorporate those ideal habits into your
                                                                                                         own character and personality.

                                                                                                         You know that you can shape a piece of
                                                                                                         clay into any desired form. You can also
                                                                                                         shape your own character and personality
                                                                                                         by simply deciding to do so. I won’t say
                                                                                                         that it is easy. Changing your beliefs and
                                                                                                         attitudes about yourself is one of the most
                                                                                                         difficult undertakings you will ever face. But
                                                                                                         it is definitely possible and achievable if you
                                                                                                         dedicate the necessary time and effort.

                                                                                                         How long does it take to develop a new habit
                                                                                                         pattern? It depends on how complex the habit
                                                                                                         pattern is. You can develop a simple habit


   12                                                                                                               www.autosuccess.biz
continued

pattern in 14 to 21 days. For example, if you       and joint of your body to keep it young and        want to become in the future. Remember,
want to begin getting up half an hour earlier       fit. And finally, you must have regular habits       your subconscious mind is activated
so that you can plan and organize your day, it      of rest and recreation that will enable you, in    and programmed by mental pictures. All
might take just two to three weeks to develop       combination with diet and exercise, to live a      improvement in your life and character begin
the habit. If you want to develop a new habit       long, full life. Remember, your health is the      with an improvement in your mental pictures.
pattern of behavior that goes deeper into your      single most important thing you have, and it       Use visualization on a regular basis in
character, it might take several months or even     is completely dependent upon the habits you        conjunction with your positive affirmations.
a year or more. The most important point is         develop with regard to the way you live.
that, no matter how long it takes, the end result                                                      4. Emotionalize the affirmation and the
is achievable if you are really determined.         The sixth habit is an orientation toward           visualization. Take a few minutes each day
                                                    honesty and integrity. In the final analysis,       to actually experience the feeling of being the
The habits of success have been studied by          the character you develop as you go through        excellent, outstanding human being that you
the great thinkers and philosophers for at          life is more important than virtually anything     have decided to become.
least 2,500 years. After personally studying        else. Honesty means that you practice the
the subject for more than 30 years, I have          “reality principle” in everything you do.          5. Launch into your new habit with conviction.
found that the very best people have the            You are completely objective with yourself         Assume the role, acting as if you had been
very best habits. Based on these findings, I         and with the world around you. You set very        hired to perform this role in a movie. The
have identified seven habits that you need to        clear values for yourself and you organize         more you behave exactly as if you already had
develop if you want to perform at your very         your life around your values. You develop a        the habit, the more you actually become the
maximum in everything you do.                       vision for yourself and then you live your life    person that you desire to be.
                                                    consistent with your highest ideals. You never
The first is goal orientation. You need to           compromise your integrity or peace of mind         6. Tell others that you have decided to develop
become a habitual goal setter, and dedicate         for anyone or anything.                            this habit. When you tell others, you motivate
yourself to working from clear, written goals                                                          and encourage yourself. You also force
every day of your life.                             This attitude of honesty will enable you to        yourself to consistently act in accordance with
                                                    enjoy all of the other success habits that you     your new resolutions because you know that
The second habit you need to develop for            are developing.                                    others are watching.
success is result orientation. Result orientation
is made up of two practices. The first is the        The seventh habit, the one habit that guarantees   7. Continually review your progress on a
practice of continuously learning so that you       all the others, is that of self-discipline. Your   day-to-day basis. When Benjamin Franklin
become better at what you do. The second            ability to discipline yourself, to master          developed his own process for character
practice is that of time management, which          yourself, to control yourself, goes hand in        formation, he would review his behavior every
means setting very clear priorities on what you     hand with success in every area of life.           single day to see if he was living consistent
do and then concentrating single-mindedly on                                                           with the values that he had determined were
the most valuable use of your time.                 My favorite definition of self-discipline           important. You can do the same thing. At the
                                                    comes from Elbert Hubbard. He said, “Self-         end of every day, do a brief recap of your
The third major habit you need to develop is        discipline is the ability to make yourself do      behavior during the day relative to the values
that of action orientation. This is really the      what you should do, when you should do it,         and habits you are trying to develop. Give
most important habit for material success.          whether you feel like it or not.”                  yourself points when you are strong, and be
It is the ability to get on with the job and                                                           patient with yourself when you slip from time
get it done fast. Fast tempo in whatever you        Every one of these habits: goal orientation,       to time.
do is essential to your success. You need to        result orientation, action orientation, people
overcome procrastination, push aside your           orientation, health orientation, honesty,          The most important keys to developing new
fears and launch 100 percent toward the             and self-discipline, can be developed. The         habit patterns are patience, determination,
achievement of your most important goals.           following is a seven step method you can use       and persistence. When you begin to change
                                                    to internalize any habit or group of habits that   yourself, you will find that it is not particularly
The fourth habit you need is people orientation.    you want to make a permanent part of your          easy. But it is possible if you continue to work
This is your decision to cultivate within           character and personality.                         at it.
yourself the habits of patience, kindness,
compassion, and understanding. Virtually all        1. Decide clearly on the new habit. Write it       You can take complete control over the
of your happiness in life will come from your       down as a goal in the form of a present tense,     shaping of your character and personality, and
ability to get along well with other people.        personal, positive affirmation. For example,        everything that happens to you in the future,
And getting along well with other people is         if you want to develop the habit of self-          by making the decision, right now, to define
based on a set of habits that you have learned,     discipline, you write, “I am an extremely well-    and develop the habits that will lead you to
or failed to learn, from childhood. But it is       disciplined individual in everything I do.”        great success. And when you develop the
never too late to become a wonderful human                                                             habits possessed by other successful people,
being in your relationships with other. The         2. Repeat your affirmation as often as possible,    you will enjoy an equal, if not greater, level
more you practice being a truly excellent           and with as much enthusiasm and conviction         of success.
person in your relationship with others, the        as possible. The more times you repeat this
more you will internalize those qualities and       command, the more likely it is that your
actually become that person.                        subconscious mind will ultimately accept it
                                                    and begin to adjust your thoughts, words, and
The fifth habit you need for great success is        behaviors to be consistent with it.
health orientation. This means that you must                                                           Brian Tracy is the Chairman & CEO of
make a conscious effort to eat the right foods      3. Visualize yourself as if you already had        Brian Tracy International. He can be
in the right proportions. You must exercise on      the new habit pattern. Imagine yourself as         contacted at 866.300.9881, or by email at
a regular basis, continually using every muscle     already being exactly the person that you          btracy@autosuccess.biz.

october 2004                                                                                                                                     13
sts       ms        ls      fis       lr                                                                                           CarolMartin
                         leadership solution

                                                                              Communication and
                                                                           Individual Management
                     This article is the last of   to hear. He/she frequently backs away from          subordinate’s communication style oppose
                     a series about reducing       situations that might put him/her in a bad light,   one another. Example: A dealership recently
                     employee         turnover     make him/her seem hard-hearted or uncaring;         hired Steve, a very friendly and seemingly
                     by          maximizing        he/she has a strong need to be liked by those       highly persuasive person, to lead its sales
                     employee morale and           around him. He/she may be an enthusiastic           people. Steve was diligent about greeting
                     productivity. In the          motivator, inspirational cheerleader and/or         each member of his staff enthusiastically
previous issues of AutoSuccess we wrote of         articulate conversationalist.                       each morning; he would also make it a point
“Defining an Agency’s Corporate Culture”                                                                to strike up casual conversations and hold
the various things that distinguish it from        Since establishing rapport with others is a top     unabashedly colorful discussions about how
other agencies and “Retention of Staff”            priority in the mind of an extrovert, he/she is     to increase sales. While a few subordinates
the importance of knowing your specific             generally expressive, upbeat and enthusiastic.      appeared to appreciate his rather flamboyant
workplace needs and then selecting suitable        He/she often serves as the promoter, networker      work approach, most seemed disinterested and
employees.                                         and presenter of a team. Perks, public praise       uninspired.
                                                   or status symbols will spur him/her on and
Being aware of how the different members           inspire him/her to perform well on the job.         Try as he might, Steve could not seem to
of your dealership communicate is key to                                                               connect with everyone on his team. He
knowing why individuals may sometimes              You may have read the preceding paragraph           saw many vague, emotionless stares when
have conflict with each other, not understand       thinking of your sales people. For fun and          telling humorous stories to break the ice and
one another, and find it difficult to work           increased understanding, read it again and          received turndowns to his heartfelt lunch
together. Interpersonal communication comes        think of one of your sales people from the          invitations. When some sales people started
into play in virtually every aspect of human       standpoint of managing him/her. The same            excusing themselves from his team-building
life and is probably the most critical element     behaviors give critical clues to optimized          games, Steve knew he needed to find alternate
of management; it is pivotal to the ongoing        coaching and motivating.                            management techniques – quickly!
success of a dealership. Managers and
subordinates may often seem to be operating        Read the paragraph again, but this time think       Anyone who finds himself/herself in Steve’s
from opposite sides of the communication           about what you are reading as it might apply        situation needs to step back and realize that
spectrum. The ability to relate to one another     to your employee’s management style and the         subordinates who are reserved in demeanor
opens the door to increased motivation and         way he/she is likely to communicate with and        will dismiss zest and passion as superficial and
a greater sense of commitment within a             motivate others.                                    meaningless. They respond to facts, practical
dealership. It also often brings the added                                                             feedback, and logic. Small talk should be
benefits of heightened productivity, job            Let’s look at another personality and its           kept to a minimum and a more formal, less
satisfaction and employee loyalty.                 particular interpersonal communication style.       frivolous work approach should be adopted.
                                                   The individual who is not people-oriented
Dealerships throughout the nation have found       but who is task-directed. He/she tends to           A totally different plight emerges when the
that behavioral-based assessments can be           be matter-of-fact, skeptical and inclined to        opposite occurs, when it is the sales manager
instrumental when it comes to identifying an       examine situations before speaking. This            who is serious and direct and the employee
individual’s communication style. Statistics       analytical conservative may not be responsive       who is spirited and unrestrained. Example:
show that an increasing number of dealerships      to enthusiastic attempts to make him/her            The manager, Donna, felt she was doing all
are electing to profile both job candidates and     buy into an idea. He/she is convinced by            she could to inspire and motivate her team.
existing employees in order to have a clear        data, inarguable information, not by others’        She made an effort to get right to the point,
view of their needs and preferences. Among         excitement. He/she is inclined to examine           citing weaknesses in a job performance and
the preferences an employee’s preferred way        the practical ramification of situations, he/she     offering clear ways to improve.
of being communicated with and his/her             often helps keep an organization based in
natural way of communicating with others.          reality and feasibility.                            What she later learned, however, was that
Knowing more about an applicant makes it                                                               most of her subordinates expected her to
easier to determine if he/she is really suited     Since he/she is objective in his/her thinking,      loudly praise and applaud their efforts. They
to the job, the work environment and those         this calm, collected individual tends to utilize    needed a cheerleader, someone who could
critical communication issues.                     a consultative business style. He/she takes an      display an interest in their achievements, not
                                                   analytical approach when dealing with buyer’s       just dwell on their failings. It was easy to see
What can a profile tell you about interpersonal     issues and offers sensible solutions when           why communication and productivity within
communications? A person who communicates          dilemmas occur. He/she also takes his/her           the dealership had deteriorated. Donna’s
in an outgoing, highly animated and gregarious     time to develop rapport and may not always          very dry, somewhat negative approach to the
manner does not speak the same language as         be highly approachable, he/she is often labeled     business was not one her vivacious, colorful
one who is reserved, pragmatic and serious.        as “no fun” or even “anti-social.”                  sales staff could even begin to relate to.
The interpersonally focused individual is
more inclined to think with his/her emotions.      You might want to re-read the preceding two         A manager in Donna’s situation needs to make
Because he/she is not as fact-driven as his/her    paragraphs thinking of your employee in sales,      a conscientious effort to provide frequent and
quiet co-workers, he/she may be more likely        as your subordinate being managed and as a          enthusiastic praise to his/her team. He/she
to take information or appearances at face         manager of others.                                  should also be reminded to take the time to
value, could tend to talk more than listen,                                                            show some interest in the personal feelings
and may say things he/she thinks others want       Problems abound when a manager’s and a              of subordinates, as this can create a spirit of


   14                                                                                    subscribe today at www.autosuccess.biz
continued

harmony and camaraderie. A no-nonsense tone       another. A manager might wonder when             Attempting to take charge of a team without
and serious personality can make one seem         the subordinate will start to work up to         predetermining its strengths, weaknesses and
unapproachable, distant, especially to those      expectations, while that same subordinate        compatibility is like getting behind the wheel
who are outgoing. Such miscommunication           may simply begin to look for another job. The    of a car without first knowing where the gas
typically causes great rifts throughout a         truth is that if each one could understand the   pedal, brake and gear-shift are. When driving
department or an entire dealership.               reason for the other’s behavior, more harmony    this way, you would expect mishaps and
                                                  and accord exist.                                confusion.
While it is possible to modify management
techniques, it is obviously easier to hire the    Three ways to help reduce turnover rates:
person who is best suited to the environment.       1. Define your agency’s corporate
The one who, from the start, will be a good fit      culture
with the team, a hire who is likely to respond      2. Know that the first step in employee         Carol Martin is a Senior Consultant
to the natural interpersonal communication             retention lies in employee selection        with The Omnia Group. She can be
style of the prospective manager. Before            3. Learn how to communicate                    contacted at 800.601.3216, or by email at
taking on new employees, it makes sense to             effectively with your employees             cmartin@autosuccess.biz.
screen them to help weed out those who might
quickly become labeled “high maintenance.”



                                                            Increase Sales by
The wrong person for a particular workplace
or a particular manager can be a frustrating
and costly mistake.




                                                            20% in 10 Minutes
Example: When Janet, a long-time favorite
employee, was promoted and needed to be
replaced, the dealer and general manager
were hoping to find someone like her. They
interviewed several candidates then hired
Amanda, who seemed as self-starting and
cooperative as Janet. Soon after, however, the                         Stay in contact with all ups
manager noticed that Amanda was making
an inordinate amount of mistakes. She also                  Receive total data based management
seemed more aloof than he remembered her
being at the interview and certainly was no
Janet. After months of mutual frustration,
                                                        Daily management reports you can use to
heated discussions and several warnings,                         manage your people
Amanda was fired.

Hoping to avoid another time-consuming
                                                                FREE FTC “Do Not Call” daily
and financially draining bad hire, the                       synchronization and alert to help you
dealership decided to have Janet take an
employee profile. The results revealed that                         aviod an $11,000 Þne
Janet possessed two very dominant traits that
Amanda had clearly been lacking: Janet was
                                                       The Koons Automotive Group sold over 44,000 vehicles last year with the help
meticulous in her work and very diplomatic.
With a new understanding of what they were             of ProResponse
looking for, it did not take long to find Susan,        -Alex Hafer General Manager
whose profile showed strong similarities to
Janet’s. Susan was hired and has proven to             ProResponse is the only system I have ever used where the sales people are
be a happy, productive and quality-conscious           actually motivated to use it. Our new car sales are up 21% in one year.
employee – just like Janet.
                                                       -Jeffrey Abel President Miller Toyota
Managing Susan is easy too, because her boss
knows she works best when given clearly                Our closing ratio has improve 38% and our “be-backs” have nearly doubled.
defined objectives, specific instructions,               When we first implemented ProResponse we averaged 160 cars a month, an
and frequent feedback regarding her job                average month is now 350!
performance. Letting her work with little              -Kevin Cohan General Manager, Jim Coleman Cadillac Infiniti Toyota
oversight would be a big mistake and could



                                                                    RORESPONSE
cause her to flounder when ambiguous
situations arise. Her manager knows her
traits and uses her profile to coach and
motivate (while avoiding the employee’s own
demoralizers), there exists a greater sense of
mutual understanding, well being and team
spirit.                                                 Limited Exclusivity. Call us before you competition does!
When      difficulties,    challenges     and
disagreements are prevalent in the workplace,
employees and employers often blame one
                                                                    800.453.8211
october 2004                                                                                                                              15
fs      feature solution


                                                                                                                             PatrickLuck



                                            Dealers Generate $500k in
                       ADDITIONAL PROFITS LAST MONTH
The Marketing Revolution                        Part 1: Dealers are using select 3rd party lead   their results. The best part about Internet
There is a marketing revolution taking          providers to generate leads for their staff       marketing is that everything is measurable
place where dealers are changing how they       Part 2: Dealers are setting up websites so        so it is important to evaluate how many
advertise by targeting their marketing like     they can generate their own leads also            leads you get and what the closing ratio and
a rifle rather than shot gunning with mass       Part 3: Dealers are using the right tools &       cost per sale is by source. “We measured
media. The two biggest shifts in the market     processes to increase the closing ratio of        our lead activity for 90 days and we cut all
are the use of low cost advertising that is     their leads                                       of our poor performing lead providers. We
more measurable than traditional advertising    Part 4: Direct Mail and Email Marketing           only kept the great performers and the lead
like the Internet and direct mail. Mass media                                                     aggregators like Dealix are the best because
is increasing in cost and decreasing in the     Part 1: The Lead Providers                        the closing ratio is much higher when you
return. This has been brought on since the      Lead providers give dealers leads every           have the right information to contact the
newspapers have consolidated and there are      month in their geographical area. The reason      customer and the cost per sale is under $200
more TV and Radio Stations reaching less        dealers use lead providers is because these       per vehicle,” explained Robert Revere from
and less people. At the same time, almost       3rd party buying services have a national         HouseofCourtesy.com.
80 percent of shoppers use the Internet to      presence in the market and have online
research before they buy a car compared to      advertising that gives them exposure              Used Car Lead Providers
less than 30 percent of the shoppers that use   to customers that the dealer may not              Dealers have had a lot of success with selling
the traditional advertising mediums like TV,    otherwise be able to reach. In addition, some     used cars on the Internet because it is a lot
Radio, Outdoor and Print. As a result, the      customers prefer to interact with a 3rd party     easier for a customer to spend time on their
Internet and targeted marketing has emerged     because they feel they will get unbiased and      computer searching dealer inventories than if
as the most effective way for dealers to        objective information they can trust. This        they had to spend all weekend driving around
advertise for less cost and they can measure    is the first step most dealers take because        from store to store. Used car lead providers
everything they spend.                          they can start getting leads immediately          list dealer’s inventory on their website and
                                                from these 3rd party providers so they have       customers inquire on the exact vehicle they
Can you Make Money on the Internet?             enough leads for a full time person who can       want. The unique part about used vehicles
“Last month we sold over 200 cars over the      get them results right out of the gate. There     is that every one of them is “one of a kind”
Internet for $2400 gross profit per vehicle.     are 2 basic types of lead providers: New car      so the closing ratio and the gross profit can
We have increased our sales by 179 percent      lead providers and used car lead providers.       sometimes be higher when compared to new
over last August by using the web to attract                                                      vehicles. “We are #1 for sales of Honda
more traffic for less cost compared to our       New Car Lead Providers                            Certified vehicles and we don’t even have a
traditional advertising. We spent $100k less    New car lead providers give dealers leads         used car lot. We are land locked and we sell
in advertising while we almost doubled our      from their own website. Lead providers            most of our used vehicles on the Internet. We
sales and profitability and we can measure       can charge anywhere between $20-$35 per           make more money on used cars online than
where every dollar is going,” said Brian        lead and they vary greatly in the quality of      we do on new cars because the average gross
Benstock from Paragon Honda & Acura.            the leads they sell. Some leads have a low        per sale is much higher,” said Benstock from
Robert Revere from HouseofCourtesy.com          closing ratio and a high cost per sale while      ParagonCars.com. In addition to receiving
agreed, “We sold 277 cars online last month     others have a high closing ratio and a low        a lot of Internet leads on used cars, most
and we became the #2 Chevrolet dealer in        cost per sale. The key to buying quality leads    dealers will receive 5-10 times the number
the country because of what our Internet and    is to make sure that they are not “duds”.         of phone calls from used car lead providers.
BDC department generated.” In this article,     There is a new type of lead provider called       “In addition to the Internet leads we get, we
we will give you a summary of how you can       an “aggregator”. New car lead “aggregators”       get more than 100 calls from having our
use the Internet and targeted marketing to      filter and clean leads before they give them       cars on AutoTrader.com. In addition, we
make more money for your dealership.            to dealers to check to see if they are “duds”     link customers to our website directly from
                                                and to ensure they are higher quality and         AutoTrader.com by simply asking them to
What are the best dealers doing to make         thus get a higher closing ratio. For example,     add a link with ParagonCars.com to increase
more money online?                              an aggregator will scrub the leads and            the traffic to our own website also,” added
We researched how the best dealers in           append the leads to ensure that the contact       Benstock.
the country are shifting their advertising      info is not bad and they will sometimes add
to attract more customers for less cost by      information that is important to a dealership     Part 2: Dealership Websites
leveraging targeted marketing. We have          like the phone number and other information       The second part of the most successful
summarized what they are doing in 4 parts.      that helps the Internet sales person improve      dealerships Internet strategy is their website.




  18                                                                                                         www.autosuccess.biz
The best dealers typically generate a lot of       for Internet sales people to manage these         are. It doesn’t convey any compelling
leads directly from their own website. The         opportunities over many months. These             reason for the buyer to favor your dealership
leads from a dealerships website typically         tools will create daily calendars and follow      over another. It doesn’t make a case for the
have a higher closing ratio than the leads         up plans to remind the sales person of who to     product or service you sell.
they buy from 3rd party providers and the          call and when to call them. In addition, most
average cost per sale is usually lower. Most       of the tools come with templated emails           In contrast direct response advertising’s
dealers recognize this but they do not have        to send to different customers in different       very name is self-explanatory. It is designed
enough leads from their own website to             situations. Dealers and managers like the         to evoke an immediate response or action
sustain their growth. The first challenge is        fact that these tools make it easy for them to    – a visit, a call, or a purchasing decision
that they do not know how to attract the           monitor their advertising return, their people,   from the buyer. The most effective form of
traffic to their website and if their site does     process and results by giving them accurate       direct response advertising is direct mail. It
not get traffic it won’t generate leads. The        reports that are automatically generated. In      presents factual, specific reasons why your
second challenge is that many dealerships          total, these tools help Internet sales people     company, product or service is superior to
have templated websites that don’t do a good       improve their response times, appointments,       all others. Direct mail advertising directs
job turning website browsers into leads. The       sales and follow up because it does some          people to action. It compels readers to call
best dealers have the right Internet marketing     of the work for them. “We increased our           you or drive their car down to trade it in
strategy to drive traffic to a website that is      closing ratio from 7-25% in one quarter           on a newer model. Used effectively, direct
effective at converting visitors into leads and    according to Honda’s Excel Report because         mail can produce tons of super qualified
sales. “We actually set up our own regional        our CRM tool automates most of the process        ups. At its best it literally compels people to
buying service at www.RedMcCombs.com               for us. Buzztrak automates the initial            call, visit and buy. And you can analyze the
and we sold 500 vehicles last month online,”       responses and 90% of the follow up during         value, profitability and performance of your
explained Rad Weaver from Red McCombs.             the sales process and after they buy the car.     advertising.
The key to a great website is that it should       We are currently handling over 1000 leads
market the entire dealership and it should         with only 3 people because most of their job      “We integrated our direct marketing and
generate a lot of leads. The key to generating     is automated. The best part is that it frees      email marketing campaigns to attract
a lot of leads is to get a website that has a      our team to spend more of their time selling      customers to our website and our dealership.
high “conversion ratio” which means that           appointments and cars rather than spending        We hired J&L Marketing to set up and
it converts a high percentage of browsers          time sending emails,” said Benstock, co-          implement the whole direct mail program.
into leads. In addition, the best websites         owner of Paragon Honda.                           In just the first week we sold over 50 units
do a good job setting the dealership apart                                                           for more than $100,000 in gross profit. In
from their competition by sticking out             Part 4: Direct Mail & Email Marketing             addition, we continued to deliver vehicles
amongst the bland cookie-cutter sites that         Dealers are frustrated by the high costs of       weeks after the event.” said Brian Benstock
all look the same. “After we changed our           mass media and the decrease in the return         from Paragon Honda. Benstock continued,
manufacturer templated website to our              they are getting. Mass media is undergoing        “direct mail has replaced a lot of our
new website we generated over 700 leads            a major shift because it is difficult for          newspaper advertising because we have been
and we sold 106 units the first month,”             advertisers to target the right audience. In      able to increase our traffic while spending a
said Jennifer, the Internet director from          addition, consumers are using satellite radio     lot less money and the cost per sale is almost
www.ParagonCars.com. The best dealers              and tools like TIVO to skip commercials           half of what we used to spend.”
have websites that generate a lot of high          thus undermining advertiser’s ability to
quality leads to their Internet department         reach them at all. Newspaper costs continue       Just Do It!
and additional traffic to their phone and           to skyrocket as a result of consolidation.        It is obvious to most dealers that the targeted
showroom as well. We noticed that the best         Thus dealers who spend a majority of their        marketing and the Internet is the future of
dealers have a blended strategy where they         ad budget on TV, radio and newspaper are          automotive advertising. What makes the
get their leads from their own website and a       forced to pay to reach millions when only         best dealers succeed is their ability to see this
few high quality lead providers because both       thousands are actually interested in their        opportunity, to act and to follow through. In
generate incremental sales for a lower cost        offers.                                           our business, failure is caused less by a lack of
per sale compared to traditional advertising                                                         knowledge and more by a lack of execution.
mediums.                                           Almost every Print ad, Radio or Television        I hope this gives you the information and
                                                   commercial, even some Direct Mail pieces          the inspiration to take action and to improve
Part 3: The Right Tools & Processes                are institutional – type advertising. At best,    how your marketing, attracting, selling and
When dealers set up the right lead providers       that produces deferred results. At worst          keeping your customers.
and website they usually don’t have a              – and this applies to 95% of all advertising
problem generating a lot of leads. What            out there – institutional advertising is an
makes dealers money is how good of a job           ineffective, vacuous, wasteful expense
they do in turning their leads into sales. The     that accomplishes no productive purpose
challenge that many dealers face is that they      whatsoever.
can get hundreds of leads in one month and it
can become very difficult to manage, follow         No wonder most dealers state that attracting
up and measure all of that lead activity with      traffic to their showroom is their single
out the right tools. All of the best dealers use   biggest challenge in selling cars today.
some type of lead management or CRM tool                                                             Patrick Luck is the Editor and Publisher
to help them manage all of their leads. These      Most institutional advertising tells you          of AutoSuccess Magazine. He can be
tools accept and organize the leads they get       how great the dealership paying for the           contacted at 800.331.9507, or by email at
from all of their sources to make it easier        advertising is, or how old and stable they        pluck01@autosuccess.biz.




october 2004                                                                                                                                  19
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AutoSuccessOct04

  • 1. Re-elect George W. Bush, page 8 .biz BEST PRACTICES SUMMIT October 2004 756 South 1st Street PRSRT STD Suite 202 US POSTAGE Louisville, KY 40202 PAID LOUISVILLE KY PERMIT NO 879 a division of Systems Marketing, Inc. www.autosuccess.biz
  • 2. 58 Cars Sold Last Month with Dealix Leads Magnussen’s Dodge Chrysler Jeep Magnussen’s Dodge Chrysler Jeep Quality Leads | Superior Service | Dealer Control Features “That’s why I get my leads from Dealix. When it comes to selling to Internet customers, my team goes beyond our immediate market area. In fact, we pull customers in from as far as San Francisco. With Dealix, we can get leads from a wide mile radius, or we can target specific Zip codes. The choice is ours. No other lead provider gives us this level of control and this many sales.” Steve Jackson, Internet Fleet Manager, Magnussen’s Dodge Chrysler, Jeep of Auburn, CA Dealer Control Features Dealix AutoUSA Autobytel Territory ControlSM Standard N/S N/S Choose multiple Zip Codes for each franchise. Territory ControlSM Target your ideal sales territory – choose any Standard N/S N/S mile radius. Inventory-Driven Lead ControlSM Standard N/S N/S Choose leads for the models you want to sell. N/S = Not Standard July 2004 Sales Start selling more cars today! Call Dealix now. (866) 253-5125 or visit us online at www.dealix.com.
  • 3. Grow or Die …In today’s hostile, competitive environment you’ve got no choice! You cannot stay where you are. A COMPLETE SALES, MANAGEMENT, MARKETING, AND STATE OF THE ART CRM STRATEGY This Man Means Business! ® Ziegler Supersystems is a complete marketing strategy for all dealerships no matter what the size. James A. Ziegler, CSP To do business in today's hostile environment... you must be prepared to take that business away from a competitor who is planning to take it away from you! SALES MANAGER FORUM: Motivating your Sales Team to Higher Profitability Taught By James A. Ziegler Atlanta, GA . . . . . . . . .Oct. 5 - 6, 2004 Las Vegas, NV . . . . . . .Oct. 7 - 8, 2004 Atlanta, GA . . . . . . . . .Nov. 16 - 17, 2004 Atlanta, GA . . . . . . . . .Dec. 16 - 17, 2004 THE COMPLETE F&I MENU SELLING Present 100% of your products 100% of the time! Taught By Mike Lee Sponsored By James A. Ziegler Atlanta, GA . . . . . . . . .Oct. 12-14, 2004 Atlanta, GA . . . . . . . . .Nov. 9 -11, 2004 Las Vegas, NV . . . . . . .Dec. 7 - 9, 2004 Dates and locations subject to change Ziegler Supersystems • www.ZieglerSuperSystems.com • 800-726-0510 Call today to speak to a Ziegler Representative In-Store Consulting - Management Seminars - Video Sales Training - Support Products
  • 4. I N S I D E 8 Re-elect George W. Bush Jerry Reynolds 9 Don’t Miss the Good Life Zig Ziglar 10 How to Convert Outside Finance Customers George Jackson 11 Leadership Assessment Sean WolÞngton 12 Transforming Bad Habits Brian Tracy 14 Communication and Individual Management Carol Martin 18 Dealers Generate $500k in Additional ProÞts Last Month Patrick Luck 20 The Silent Sell Patti Wood 22 OFAC Regulations Fran McAllister 23 Lead Volume Skyrockets More Than 450 Percent David Koehler 24 Houston, We Have a Problem Michael York 25 Your Sales Will Increase Steve Hiatt 26 Follow Up Every Unsold Prospect (Phone Script) Jim Adams 27 Service Standards Joe Takash 28 How to Overcome Call Reluctance and Increase Sales Bill Gager Psalms 37: 29-34 The righteous shall possess the land, and dwell upon it for ever. The mouth of the righeous utters wisdom, and his tongue speaks justice. The law of his God is in his heart; his steps do not slip. 756 South 1st Street, Suite 202 Louisville, Kentucky 40202 The wicked watches the righeous. and seek to slay him. ! Toll Free: 877.818.6620 " Facsimile: 502.588.3170 The Lord will not abandon him to his power, or let him be condemned when he is brought to trail. Patrick Luck, Editor & Publisher Thomas Williams, Creative Director • pluck01@autosuccess.biz • twilliams03@autosuccess.biz Wait for the Lord, and keep to his way, and he will Susan Goodman, Vice President Courtney Hill, Advertising Services exhalt you to posses the land; you will look on the • sgoodman02@autosuccess.biz • chill04@autosuccess.biz destruction of the wicked. Amy Stuber, Advertising Services Success Driven Solutions • astuber05@autosuccess.biz AutoSuccess Magazine is published monthly at 756 South First Street, Suite 202, Louisville, Kentucky, 40202; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccess.biz.Subscriptionrateis$75peryear.AutoSuccesswelcomesunsolicitededitorialsandgraphics(notresponsiblefortheirreturn).Allsubmittededitorialsandgraphicsaresubjecttoeditingforgrammar,content,andpagelength.AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees.Always confer with legal counsel before implementing changes in procedures. © All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 756 South First Street, Suite 202, Louisville, Kentucky 40202.
  • 5. Total Loss Protection Increase Your Lease/Balloon Note Profits! $350.00 Minimum Keep your Customers in your Store! UP TO $5000.00 PAYMENT With a Price Refund Guarantee If Not Used! TLP FROM DEALER MOTOR SERVICES For More Information, Please Call: Peter Masi, President at (800) 242-7316 ext 105 or visit us at www.follarigroup.com
  • 6. EXPOSED Auto Dealer Speaks Out and Reveals the Raw Truth about That “Consultant –Trainer,” Mark Tewart, Who advertises in this Magazine All the Time. This guy, Mark Tewart promises all sort of things to us car dealers – sales and management strategies for our dealerships that he “promises” really pay off. Such as strategies that will increase sales without increasing your advertising. Ways to increase gross proÞt by $200 a car minimum. How to reduce and eliminate water in used cars and so on. Every time I read one of his ads, I thought, “Who could be dumb enough to fall for this guy’s rap?” Now, I’m going to tell you the raw truth about this guy and his ‘success secrets.’ My name is Chad Hawkes; I live in Oklahoma with my wife and child. I went to college here and became a salesperson at a car dealership. I was a struggling salesperson with little direction and not much of a future if my results stayed the same. I didn’t know what I was doing and was frustrated everyday with the business. I needed a change and I needed it quick. One day our dealer hired a consultant and trainer named Mark Tewart who ran all these ads with these big claims. However, our dealer told us he had known this Mark Tewart guy for several years going back to when he was a new manager at another dealership. Our dealer told us to hang on to our hats because this guy Tewart was a Þreball with more real valid information on success in the car business than anyone he had ever seen and that he wouldn’t have become a dealer before he was 30 years old without Mark Tewart. Most of what he taught us was so different from what we had ever seen, heard or been taught by other so-called experts. As we listened to Mark’s information, we saw a whole different way to develop a high income career rather than just make a sale here and there. We heard sales skills, people skills and life skills and found freedom from the cheapest price, roll around in the mud, bait-n-switch ugliness. Best of all we learned actual skills to reengineer our business (managers and dealer as well as salespeople). I even looked in the mirror and saw Chad Hawkes differently. So, skeptical and grateful at the same time, we left the workshop with a workbook and CD’s full of ideas. The next day I began to implement 10 different Mark Tewart strategies. Over the next couple of weeks, as I got them up and running, they all surpassed my greatest expectations. Let me give you an idea of what I am talking about. My Þrst year of implementing Mark’s strategies, I became the number one salesperson and my production tripled. I began to get my life in order as well. Every time Mark came to the dealership he taught me lessons that made my whole life change for the better. After a period of big increases, I was promoted to manager and attended Mark’s Management workshops. Once again, I was amazed at how much incredible information I got and how much it improved our dealerships sales and proÞts. Our little country dealership, located in an economically challenged area had improved from 40 units a month to over 325 units and we had become on many months the largest dealer of our brand in the state! Personally, I went from struggling to winning. I became the General Sales Manager and then bought my own dealership and now own two dealerships before turning 30 years old. How, you ask, could such a thing happen? The answer, simply, is learning how real proven and effective sales and management systems work, from the “master”, Mark Tewart. In spite of everything you hear about business being slower and tougher, my business is booming. Just a couple of Mark’s strategies alone has allowed me to go from 40 used cars a month to over 120 a month operating out of a trailer! Thanks to Mark’s ideas, systems, inspiration and encouragement I have two dealerships and have bought the ranch of my dreams for my family. What is important is that Chad Hawkes can sell a ton of vehicles, get plenty of referrals, is unaffected by competition and has ‘real’ systems in place to realize a huge proÞt every month. I knew Mark had it Þgured out when after one consulting session he showed me over 40 ways to grow my business and make more proÞt. He is brilliant. So here’s the raw truth about this Mark Tewart guy: Unlike most of the ‘pretend’ experts, he is a bona Þde trainer-consultant and money making genius, who can do anything from tweaking to transforming your business, so you not only make a lot of money, but you can make it a lot easier and more enjoyable than you can imagine. Maybe you are already doing well already – but you could do better (some of Mark’s most ardent students make many millions per year). Maybe you just don’t want to be sold something that’ll be a waste of your hard-earned money. About that you can relax. Mark guarantees his stuff. I’ve got over $1,000,000 reasons why you ought to investigate what Mark has to offer. What reasons do you have NOT to look at this? And here’s how easy it is: Mark has prepared a straight-talk, detailed report – “HOW TO RECRUIT, HIRE AND TRAIN A DREAM TEAM OF SALESPEOPLE,” which you can have absolutely FREE of cost or obligation. Get it, read it and decide for yourself whether or not you want to get in on Mark’s information. It’s that simple. To get your FREE Special Report go to www.tewart.com/specialreport or call our 24 hr. hotline at 1.866.432.2468. You will hear a brief, free recorded message and be able to leave your name and address, so your report can be mailed to you. Or write “report” on your business card or letter head and pop it in the fax machine or email it. Mark’s fax number is 513.934.4588 and his email address is info@tewart.com - Either way, you will get his eye opening report rushed to you, free. By the way, I wasn’t paid a penny to write this about Mark. I am a car dealer just like you. I did this just as a way of saying thanks to Mark for everything he’s done for me. And I am not the only person who feels this way. With your report, you’ll get a book of actual comments from some of the over 10,000+ other salespeople, managers and dealers he has helped. Most like me are now making more money, with less hassle than ever before. More business that we handle ßows in everyday… proÞtably. All we can say is this, “don’t envy us. Join us”. Chad Hawkes, Hawkes Motors, Pryor, OK. P.S. Please don’t get my number and call me. The last thing I need is a zillion phone calls asking me about Mark. I’ve said what I have to say right here. What else could you possibly need to know? Instead, call 1.866.432.2468 and ask for your FREE SPECIAL REPORT today. You owe it to your business. visit www.tewart.com/specialreport for a Free Special Report or call 888 2 TEWART 283.9278
  • 7. $100,000 to $450,000+ $450,000.00 in 4 Days (3 w/ Snow & Rain) Gross ProÞt in 4 Days! 03/2004! Record Sale for Karl Malone Toyota, UT with PDS, Inc. Set 40 Year Record at Duea Motor Co. Albia, IA PREFERRED DEALER SERVICES, INC. $211,000+ in 4 Days. “THE MOST EFFECTIVE STAFFED SALES & TRAINING EVENT IN 40 YEARS” Mike Duea - Dealer, Duea Motor Co. IA Would you be interested in delivering 30 to 70+ units in four days at $3200 - $4500+ per retail? $175,000.00 Gross ProÞt on Inventory We Would Have Lost $75,000.00+ at Auction! We Would you like to turn aged inventory with no Look Forward to our Next Sale need to wholesale for a loss? with a “Clean Inventory” Wade Nelson, Karl Malone Toyota, NM Would you like to consistently generate proÞts exceeding $200,000 in four days? We have Successfully concluded our 4th “Acquisition Would you like to increase your proÞt per retail Sale” thanks in Large to Mark by $300 to $500 per retail after we leave? & Ann Proctor, They are Excellent! They maximized proÞt on every deal and integrated well with our staff. Mark & Ann Proctor, Dan Wachtel - Dealer, Nationally Recognized Wachtel Ford-Lincoln- Dealers with 25+ Years Mercury Inc. AL Experience...#1 CSI/QCP PDS, Inc. Provides the Highest Quality Management Preferred Dealer Services Teams in the Automotive Founded on Trust Industry Today... The Nations Built on Integrity. Leader in Automotive Sales Promotions. “Anytime, Anywhere a Product or Service is Call today to reserve your Provided...Someone Will Offer next event, scheduling is limited! it for Less! As Always, You Get 800.453.8217 What you Pay For and Pay for What You Get.” Anonymous. please visit our website for more details or to request a package. www.AcquisitionSale.com
  • 8. sts ms ls fis lr JerryReynolds leadership solution Re-elect George W. Bush It took 225 years for it President Roosevelt, President Bush was started. The war against terror is nowhere to happen, but America preparing us for war in that speech. near finished and it’s clear that John Kerry is lost its innocence on going to take us backwards. September 11, 2001. George W. Bush prepared us for war, a The lives of every different kind of war, a war that would not The tax cuts initiated by President Bush are American changed that end soon, a war that would be fought in many taking effect and the economy is improving. day, and sadly it will never be the same. But it different lands. Tears rolled down my eyes as At no time has America been a safer place to really started well before that. he said these words: “We will not tire, we will be. The outlook for the future is extremely not falter, and we will not fail.” For the first bright, especially for those of us in business. Most of us have forgotten that 241 Marines time in ten days, I felt more at ease and I felt died in Beirut in 1983. Ten years later the like a proud American. We had a plan and we Where we stand today is very reminiscent World Trade Center was bombed in New had a strong leader to carry out that plan. At in many ways of the time right before the York. Our embassies have been attacked last, it appeared that America could go back great Ronald Reagan was re-elected. Much worldwide. It’s only been four years since to work, back to our normal lives and back to like President Bush’s first term, Mr. Reagan the U.S.S. Cole was bombed. There are smiling at each other. inherited an economy in decline. By the end multiple examples of attacks against us and of Reagan’s first term, things were improving our people. September 21st, 2001 will remain in my and he needed that second term to finish the memory second only to September 11, 2001 job. President Bush finds himself in the same Yet nothing shook our very foundations like because it was the day our President changed situation, except besides just overcoming a the vision of huge 757 planes flying into the world. His words were strong and more spiraling economy; he’s had to overcome the World Trade Center towers. We saw the resolute than I had ever seen a President be. the economic devastation of September 11, pictures over and over again and America His eyes told the entire story. It was clear to 2001. wept, the unthinkable had happened. Our the world that he was serious about winning Pentagon was ablaze, planes were crashing this war and that he would not give up until I would be an advocate for President Bush into fields and we felt an overwhelming need the task was accomplished. without regard to who his Democratic to be with our loved ones. challenger is. Our major concern today has to be the security of our country. Another The shock and disbelief lasted for days. Car attack within our borders like 9/11 could sales came to a screeching halt as America watched TV, loved on their families, and By the end of devastate America. Recent history has shown us that you cannot reason with terrorists. searched for answers as to why this happened. We needed answers and most of all we needed Reagan’s Þrst Saddam Hussein is a prime example of this. He was told repeatedly to open his country to comfort and assurances that this would not term, things inspection for weapons and he refused. We were improving happen again. all know the world is a better place because Saddam is not in power, but what would You find out who real leaders are when there is a crisis. Shortly after 9/11 we learned that and he needed have happened if George Bush had backed down? We must have a strong leader that will our President was decisive, dedicated, and compassionate at the same time. His words that second term not back down. Force is the only thing our enemies can appreciate. of comfort standing in the rubble that was the World Trade Center not only brought comfort to Þnish the job. In November, we have the clearest choice to the people of New York, it brought comfort we’ve ever had and an opportunity to elect a to a grieving America. man that will protect us, that brings dignity Many heroes emerged from the ashes of that back to the White House, and a man that will History shows that there is a defining moment horrible day. We found out that the police continue the job of improving our economy. in every Presidency. I believe the defining officers and fire fighters of New York City are Nothing is more important to me than family, moment in George W. Bush’s first term came some of the finest and bravest in the world. and I know that my family will be better off on September 21, 2001. I will never forget We found out that there were hundreds of and safer if George W. Bush is re-elected. I that speech or the effect it had on me. Ten untold stories of the people of New York City hope you’ll join me in giving him four more days after the brutal attack, it seemed that pulling together. We found out that a group of years. America had gone from sadness to anger. We men stormed a plane over Pennsylvania and needed the world to know that we were not saved countless lives. And without doubt, going to stand for this. We needed to know it we found out that George W. Bush was the ourselves. right man for the job at the lowest point in American history. Sixty years earlier, Franklin Roosevelt stood in the same room with a very similar message. Today, we face a clear choice. Domestically Jerry Reynolds is the Owner of We had been attacked at Pearl Harbor and the and abroad, we have found that George W. Prestige Ford. He can be contacted at President wanted the world to know that Bush is a leader and we have to make sure 800.723.3158, or by email at we were not going to sit by idly. Much like he is re-elected to finish the things he has jreynolds@autosuccess.biz. 8 subscribe today at www.autosuccess.biz
  • 9. sts ms ls fis lr ZigZiglar sales and training solution Don’t Miss the Good Life John Jones was your motivation by reminding you that you Well, there you have it. Three hints on how to waiting for his flight can do it! Your self worth will be enhanced catch your 2:20 to Boston. If you implement from New York to and your confidence will be increased. We these ideas, you will be more dangerous than Boston. He stepped sales people need all that we can get of those you are now! on the scales that elements. This list can include things from gave your “weight and childhood to present time. You will find that Zig Ziglar is the Chairman of the Board of fortune.” He inserted his coin and out came by making this list, you will recall that you Ziglar Training Systems in Dallas, TX. He his fortune: “You are John Jones, you weigh possess the qualities and attributes necessary can be contacted at 866.873.0026, or by 188 pounds, and you are going to catch the for success. email at zziglar@autosuccess.biz. 2:20 to Boston.” He was astounded and surprised. He tried it again with the same results. The fortune said, “Your name is still John Jones, you still weigh 188 pounds, DEALERS MUST BE and you are still going to catch the 2:20 to Boston.” He went into the restroom and changed clothes and he tried it again. This time the fortune said: “Your name is still John Jones, you still weigh 188 pounds, but you ON TELEVISION! just missed the 2:20 to Boston!” Are you missing the good things that life has to offer? Do you feel that sometimes you missed the 2:20 to Boston? Or, that you decided to get off before it reached Boston? Well, the good news is that if you feel you missed it the first time, there is another flight leaving See why over 100 dealers nationwide have shortly and you can catch that flight. INCREASED SALES MORE THAN 30% IN If you don’t like where you are at this time in your life, rest assured you aren’t stuck LESS THAN 90 DAYS WITH TELEVISION! there. There are ways to move past this spot. Let’s explore three ways to do just that. We produce nearly 4,000 commercials 1. You are what you are and where you are a year from our studios. We give you because of what has gone into your mind. You unlimited, high quality television campaigns can change what you are and you can change where you are by changing what goes into and promotions FREE. With computerized your mind. How do you achieve this? One media buying technology, we buy television as way is to begin a listening and reading program. For just minutes a day, you can much as 30%-40% more effectively than any feed your mind with the pure, the powerful, media buyer in the nation and give you and the positive. How? Turn off the radio and play motivational and inspirational tapes and UNLIMITED TV CAMPAIGNS CD’s. Give yourself that check-up from the neck-up. AND PROMOTIONS! Call for a FREE demo tape and information. 2. Learn from successful failures. That’s right, learn from those who put forth the effort --- and failed. Learn from baseball Hall of Famer Reggie Jackson. He hit over 500 home runs in his big league career, yet he struck out close to 2,500 times! He didn’t Larry John Wright, Inc. put the ball in play 2,500 times. However, he didn’t stop swinging for the fence. Abraham Lincoln failed in most endeavors he tried. Yet Automotive Advertising as 16th President of the United States, he “America’s Premier Automotive Advertising Agency” successfully led our nation in some of her 1-800-821-5068 darkest moments! The lesson to be learned is this: don’t give up… keep swinging. 3. Keep a “victory list.” You should make a list - both mentally and physically - to remind yourself of past successes. This will fuel october 2004 9
  • 10. sts ms ls fis lr GeorgeJackson f&i solution How to Convert Outside Finance Customers “Hey George, I have deduct and automatic withdrawals. By doing boat. This cross-collateralization allows the a customer for you, so, they are giving up a great deal of financial bank or credit union to reduce risk and tie up and he wants to go control, something I would advise against. assets, making it difficult for a customer with to his credit union.” What happens if an unforeseen expense some missed payments to secure financing When some business arises and the customer would like to defer elsewhere. This is due to the fact that the managers hear these the payment a few days? With payroll lending source could call the boat loan due words, they immediately feel dejected, begin deduct or automatic withdrawal, deferring if the customer finances a vehicle elsewhere. the turnover with a defeatist attitude, and a payment cannot be done. Customers who To find out if the banks and credit unions expect to fail when attempting a conversion. enjoy that convenience may find it is just as you are competing with use this language, Others hear these words and recognize an easy to pay bills online. This alleviates the you need to obtain a copy of the contract opportunity to display their preparation, need to write a check, address an envelope, they use and read it thoroughly. You may be product knowledge, and positive attitude. or pay postage, and it still provides financial surprised at what you find. How you address this type of customer control. says a great deal about you to your sales We have a tendency to take for granted the people and your sales managers. The best Most customers do not realize that a contract strength of our borrowing power with our thing about a credit union or outside bank signed at a dealership is an indirect loan and best lenders. If you send 50 finance contracts customer is that he/she already needs your that a contract signed at a bank or credit to your lenders every month at an average service, and all you have to do is explain why union is a direct loan. The difference can be of $20,000 per contract, that results in $1 your lending sources are better than his/her alarming. With an indirect loan, the vehicle million worth of business sent to your lenders lending source. You will be more successful is the only collateral for the lender. The every month. That equals $12 million per if you understand and communicate the four lender cannot secure any other assets from year and $48 million over four years! This major advantages your sources have over the customer to reduce the risk. With a direct is why we can usually get higher advances, most credit unions or banks. loan, the credit union or bank can ask for marginal applications approved, longer and secure additional collateral as needed, terms, and other benefits for customers. In A lot of customers feel it is more convenient often without the customer’s knowledge. addition, our sources report to bureaus, and to get approved at their own source, and that Most indirect loans have contract language that helps establish and maintain credit for is not necessarily true. Most dealerships that requires the customer to pledge his or customers. Many credit unions and banks do have software programs that download her checking account, savings account, and that as well, but not all do. applications to multiple lenders. This allows other deposits held by that same lender as for quicker approvals, which leads to quicker collateral. This is called Right of Offset. Finally, sometimes the biggest advantage deliveries. This means the customer does not Additional language allows the direct lender we have is the factory programs available have to take time to drive someplace else, fill to secure assets as security from other loans to those with approved credit. While credit out an application, drive back, and wait for as security for the automobile loan. In other unions can be very competitive with rates, delivery. What could be more convenient than words, if the customer has an existing loan they usually can’t compete with the sub- financing at the dealership? The customer for a boat and enters into a new loan for vented rates that have been available for the is already there. Many customers like the a truck, the boat is now collateral for the past three years. convenience of repaying the loan via payroll truck, and the truck is now collateral for the Dealership financing has many advantages over outside financing. Despite this fact, you will still hear “no” more often than “yes.” Up Unit Sales via Referrals! However, stay positive and expect a success rate of 30-40%, which is a great average for Up Service Visits by 13x a person! a business manager to achieve. Give every attempt an honest effort because it is simply Would you like a cost effective way to increase your referrals? a numbers game. You will never hit the level you want unless you try with everyone. Want to dramatically increase service visits you lose to Lube, Mufßer and Tire shops? Would you be interested in a program that pays for itself hundreds of times over? Call today for a FREE Sample! 800.723.2590 AUTO C A S H C A R D S George Jackson is the Director of F&I Training for American Financial & Automotive Services, Inc. He can be contacted at 866.280.0301, or by email at gjackson@autosuccess.biz. 10 visit us online at www.autosuccess.biz
  • 11. sts ms ls fis lr SeanWolfington leadership solution Leadership Assessment The following is a summary of the LEADERSHIP ASSESSMENT difference between a “Manager” and a “Great Leader”. You can use this table to determine which type of leader you are and more importantly what type of leader you want to be. This table will help you identify where you are, where you want to be and how you can close the gap. As you read the table ask yourself which description matches you the most and how you can improve who you are and what you do. I hope this helps you continue to grow and improve into the leader you are made to be. Sean WolÞngton is an Owner of BZ Results.com. He can be contacted at 866.802.5753, or by email at swolÞngton@autosuccess.biz. Poor Manager Great Leader AT T I T U D E Focuses on negative • Focuses on positive Looks for mistakes • Looks for successes Builds on weakness • Builds on strength Pessimist • Optimistic Know it all • Forever Student Does not need to improve • Constantly learning and growing Seeks recognition • Seeks to give recognition Inßexible • Flexible Impatient with team • Patient with team Quick to judge • Quick to understand Seeks to be understood • Seeks to understand Focuses on self • Focuses on others SelÞsh • Selßess servent AP P RO AC H Dominates • Motivates Register Now Administrates Counts on controls • • Innovates Counts on people and trust Insults • Consults The Venetian Demoralizes Negative feedback & language • • Recognizes Posititve feedback & language Hotel & Resort Not accessible • Accessible Las Vegas, Distracted • Attentive Nov 11 & 12 Bad listener • Great listener Limited Seating Interested in telling their opinion • Interested in your opinion Re-Active • Pro-Active Call Now On seat • On feet 800-849-4113 Wait for it to happen • Makes it happen www.autosuccess.biz october 2004 11
  • 12. sts ms ls fis lr BrianTracy leadership solution Transforming Bad Habits Your habits have been independence, and success are life-enhancing. but kept banging his nose on the glass. After developed from early They are the habits that have brought you several hours, Seligman removed the glass. childhood as the result the success you enjoy today. The habits that And what happened then? The dog, who of things that you have revolve around your fears, on the other hand, was still hungry, sat only a few inches away chosen to do, or not to act as brakes on your potential. They hold you from the food and never even attempted to do. Your entire life is back. They interfere with your success. They eat it. The dog had learned to feel helpless. the result of your past choices and decisions. trip you up on a regular basis. They cause you The dog had become so convinced that he And like all of us, you probably have some to sell yourself short and settle for far less than was incapable of getting to the food that even bad habits that have held you back from your your potential. when the obstacles were removed, he just sat true potential. But here’s the good news: Since there with his stomach growling. you are always free to choose, you can make Dr. Martin Seligman, in his book, Learned new choices and decisions today that will Optimism, wrote about the chief psychological There are dozens of experiments like this. In determine what happens to you in the future. phenomenon of modern life. He called it every case, it is clear that animals, and human “learned helplessness.” Based on his 25 years beings for that matter, learn to feel helpless. One of your main objectives in life is to of research, he discovered that virtually every They develop habits of thought that hold them develop new habits and make them your person has one or more areas where they feel back from reaching their full potential. masters, while at the same time overriding and helpless and unable to do something that they setting aside old habits that may be interfering really want to do. If someone were to tell you that you could with your progress. learn to type 30, 40, or 50 words per minute by Seligman’s research demonstrated how taking a typing course and practicing an hour You have two major types of habits. You animals can be trained to feel that they are each day for the next few months, you would have habits that revolve around your desires helpless. In one example, he put a dog into shrug your shoulders and say, “Of course!” and you have habits that revolve around a cage with a glass wall in the middle that Everybody knows that you can acquire a your fears. The habits that revolve around separated the dog from a bowl of food. The particular physical skill by learning how it is your desires for health, happiness, financial dog was hungry and tried to get at the food done and then repeating it over and over again until it becomes automatic. But when it comes to mental habit patterns, most people are a little baffled. They don’t realize that you can learn mental habit patterns by following exactly the same process that you would use to learn physical habit patterns. And mental habit patterns will have a far greater impact on your life and happiness than any physical habit pattern ever could. Once you have recognized the old, negative habit patterns that do not serve your purposes, you can determine what new habit patterns you would like to adopt. Begin this process by looking around and determining the people that you admire the most, both living and dead. Ask yourself: What qualities do they have? Which of their characteristics do you most wish to have for yourself? Then make a plan to incorporate those ideal habits into your own character and personality. You know that you can shape a piece of clay into any desired form. You can also shape your own character and personality by simply deciding to do so. I won’t say that it is easy. Changing your beliefs and attitudes about yourself is one of the most difficult undertakings you will ever face. But it is definitely possible and achievable if you dedicate the necessary time and effort. How long does it take to develop a new habit pattern? It depends on how complex the habit pattern is. You can develop a simple habit 12 www.autosuccess.biz
  • 13. continued pattern in 14 to 21 days. For example, if you and joint of your body to keep it young and want to become in the future. Remember, want to begin getting up half an hour earlier fit. And finally, you must have regular habits your subconscious mind is activated so that you can plan and organize your day, it of rest and recreation that will enable you, in and programmed by mental pictures. All might take just two to three weeks to develop combination with diet and exercise, to live a improvement in your life and character begin the habit. If you want to develop a new habit long, full life. Remember, your health is the with an improvement in your mental pictures. pattern of behavior that goes deeper into your single most important thing you have, and it Use visualization on a regular basis in character, it might take several months or even is completely dependent upon the habits you conjunction with your positive affirmations. a year or more. The most important point is develop with regard to the way you live. that, no matter how long it takes, the end result 4. Emotionalize the affirmation and the is achievable if you are really determined. The sixth habit is an orientation toward visualization. Take a few minutes each day honesty and integrity. In the final analysis, to actually experience the feeling of being the The habits of success have been studied by the character you develop as you go through excellent, outstanding human being that you the great thinkers and philosophers for at life is more important than virtually anything have decided to become. least 2,500 years. After personally studying else. Honesty means that you practice the the subject for more than 30 years, I have “reality principle” in everything you do. 5. Launch into your new habit with conviction. found that the very best people have the You are completely objective with yourself Assume the role, acting as if you had been very best habits. Based on these findings, I and with the world around you. You set very hired to perform this role in a movie. The have identified seven habits that you need to clear values for yourself and you organize more you behave exactly as if you already had develop if you want to perform at your very your life around your values. You develop a the habit, the more you actually become the maximum in everything you do. vision for yourself and then you live your life person that you desire to be. consistent with your highest ideals. You never The first is goal orientation. You need to compromise your integrity or peace of mind 6. Tell others that you have decided to develop become a habitual goal setter, and dedicate for anyone or anything. this habit. When you tell others, you motivate yourself to working from clear, written goals and encourage yourself. You also force every day of your life. This attitude of honesty will enable you to yourself to consistently act in accordance with enjoy all of the other success habits that you your new resolutions because you know that The second habit you need to develop for are developing. others are watching. success is result orientation. Result orientation is made up of two practices. The first is the The seventh habit, the one habit that guarantees 7. Continually review your progress on a practice of continuously learning so that you all the others, is that of self-discipline. Your day-to-day basis. When Benjamin Franklin become better at what you do. The second ability to discipline yourself, to master developed his own process for character practice is that of time management, which yourself, to control yourself, goes hand in formation, he would review his behavior every means setting very clear priorities on what you hand with success in every area of life. single day to see if he was living consistent do and then concentrating single-mindedly on with the values that he had determined were the most valuable use of your time. My favorite definition of self-discipline important. You can do the same thing. At the comes from Elbert Hubbard. He said, “Self- end of every day, do a brief recap of your The third major habit you need to develop is discipline is the ability to make yourself do behavior during the day relative to the values that of action orientation. This is really the what you should do, when you should do it, and habits you are trying to develop. Give most important habit for material success. whether you feel like it or not.” yourself points when you are strong, and be It is the ability to get on with the job and patient with yourself when you slip from time get it done fast. Fast tempo in whatever you Every one of these habits: goal orientation, to time. do is essential to your success. You need to result orientation, action orientation, people overcome procrastination, push aside your orientation, health orientation, honesty, The most important keys to developing new fears and launch 100 percent toward the and self-discipline, can be developed. The habit patterns are patience, determination, achievement of your most important goals. following is a seven step method you can use and persistence. When you begin to change to internalize any habit or group of habits that yourself, you will find that it is not particularly The fourth habit you need is people orientation. you want to make a permanent part of your easy. But it is possible if you continue to work This is your decision to cultivate within character and personality. at it. yourself the habits of patience, kindness, compassion, and understanding. Virtually all 1. Decide clearly on the new habit. Write it You can take complete control over the of your happiness in life will come from your down as a goal in the form of a present tense, shaping of your character and personality, and ability to get along well with other people. personal, positive affirmation. For example, everything that happens to you in the future, And getting along well with other people is if you want to develop the habit of self- by making the decision, right now, to define based on a set of habits that you have learned, discipline, you write, “I am an extremely well- and develop the habits that will lead you to or failed to learn, from childhood. But it is disciplined individual in everything I do.” great success. And when you develop the never too late to become a wonderful human habits possessed by other successful people, being in your relationships with other. The 2. Repeat your affirmation as often as possible, you will enjoy an equal, if not greater, level more you practice being a truly excellent and with as much enthusiasm and conviction of success. person in your relationship with others, the as possible. The more times you repeat this more you will internalize those qualities and command, the more likely it is that your actually become that person. subconscious mind will ultimately accept it and begin to adjust your thoughts, words, and The fifth habit you need for great success is behaviors to be consistent with it. health orientation. This means that you must Brian Tracy is the Chairman & CEO of make a conscious effort to eat the right foods 3. Visualize yourself as if you already had Brian Tracy International. He can be in the right proportions. You must exercise on the new habit pattern. Imagine yourself as contacted at 866.300.9881, or by email at a regular basis, continually using every muscle already being exactly the person that you btracy@autosuccess.biz. october 2004 13
  • 14. sts ms ls fis lr CarolMartin leadership solution Communication and Individual Management This article is the last of to hear. He/she frequently backs away from subordinate’s communication style oppose a series about reducing situations that might put him/her in a bad light, one another. Example: A dealership recently employee turnover make him/her seem hard-hearted or uncaring; hired Steve, a very friendly and seemingly by maximizing he/she has a strong need to be liked by those highly persuasive person, to lead its sales employee morale and around him. He/she may be an enthusiastic people. Steve was diligent about greeting productivity. In the motivator, inspirational cheerleader and/or each member of his staff enthusiastically previous issues of AutoSuccess we wrote of articulate conversationalist. each morning; he would also make it a point “Defining an Agency’s Corporate Culture” to strike up casual conversations and hold the various things that distinguish it from Since establishing rapport with others is a top unabashedly colorful discussions about how other agencies and “Retention of Staff” priority in the mind of an extrovert, he/she is to increase sales. While a few subordinates the importance of knowing your specific generally expressive, upbeat and enthusiastic. appeared to appreciate his rather flamboyant workplace needs and then selecting suitable He/she often serves as the promoter, networker work approach, most seemed disinterested and employees. and presenter of a team. Perks, public praise uninspired. or status symbols will spur him/her on and Being aware of how the different members inspire him/her to perform well on the job. Try as he might, Steve could not seem to of your dealership communicate is key to connect with everyone on his team. He knowing why individuals may sometimes You may have read the preceding paragraph saw many vague, emotionless stares when have conflict with each other, not understand thinking of your sales people. For fun and telling humorous stories to break the ice and one another, and find it difficult to work increased understanding, read it again and received turndowns to his heartfelt lunch together. Interpersonal communication comes think of one of your sales people from the invitations. When some sales people started into play in virtually every aspect of human standpoint of managing him/her. The same excusing themselves from his team-building life and is probably the most critical element behaviors give critical clues to optimized games, Steve knew he needed to find alternate of management; it is pivotal to the ongoing coaching and motivating. management techniques – quickly! success of a dealership. Managers and subordinates may often seem to be operating Read the paragraph again, but this time think Anyone who finds himself/herself in Steve’s from opposite sides of the communication about what you are reading as it might apply situation needs to step back and realize that spectrum. The ability to relate to one another to your employee’s management style and the subordinates who are reserved in demeanor opens the door to increased motivation and way he/she is likely to communicate with and will dismiss zest and passion as superficial and a greater sense of commitment within a motivate others. meaningless. They respond to facts, practical dealership. It also often brings the added feedback, and logic. Small talk should be benefits of heightened productivity, job Let’s look at another personality and its kept to a minimum and a more formal, less satisfaction and employee loyalty. particular interpersonal communication style. frivolous work approach should be adopted. The individual who is not people-oriented Dealerships throughout the nation have found but who is task-directed. He/she tends to A totally different plight emerges when the that behavioral-based assessments can be be matter-of-fact, skeptical and inclined to opposite occurs, when it is the sales manager instrumental when it comes to identifying an examine situations before speaking. This who is serious and direct and the employee individual’s communication style. Statistics analytical conservative may not be responsive who is spirited and unrestrained. Example: show that an increasing number of dealerships to enthusiastic attempts to make him/her The manager, Donna, felt she was doing all are electing to profile both job candidates and buy into an idea. He/she is convinced by she could to inspire and motivate her team. existing employees in order to have a clear data, inarguable information, not by others’ She made an effort to get right to the point, view of their needs and preferences. Among excitement. He/she is inclined to examine citing weaknesses in a job performance and the preferences an employee’s preferred way the practical ramification of situations, he/she offering clear ways to improve. of being communicated with and his/her often helps keep an organization based in natural way of communicating with others. reality and feasibility. What she later learned, however, was that Knowing more about an applicant makes it most of her subordinates expected her to easier to determine if he/she is really suited Since he/she is objective in his/her thinking, loudly praise and applaud their efforts. They to the job, the work environment and those this calm, collected individual tends to utilize needed a cheerleader, someone who could critical communication issues. a consultative business style. He/she takes an display an interest in their achievements, not analytical approach when dealing with buyer’s just dwell on their failings. It was easy to see What can a profile tell you about interpersonal issues and offers sensible solutions when why communication and productivity within communications? A person who communicates dilemmas occur. He/she also takes his/her the dealership had deteriorated. Donna’s in an outgoing, highly animated and gregarious time to develop rapport and may not always very dry, somewhat negative approach to the manner does not speak the same language as be highly approachable, he/she is often labeled business was not one her vivacious, colorful one who is reserved, pragmatic and serious. as “no fun” or even “anti-social.” sales staff could even begin to relate to. The interpersonally focused individual is more inclined to think with his/her emotions. You might want to re-read the preceding two A manager in Donna’s situation needs to make Because he/she is not as fact-driven as his/her paragraphs thinking of your employee in sales, a conscientious effort to provide frequent and quiet co-workers, he/she may be more likely as your subordinate being managed and as a enthusiastic praise to his/her team. He/she to take information or appearances at face manager of others. should also be reminded to take the time to value, could tend to talk more than listen, show some interest in the personal feelings and may say things he/she thinks others want Problems abound when a manager’s and a of subordinates, as this can create a spirit of 14 subscribe today at www.autosuccess.biz
  • 15. continued harmony and camaraderie. A no-nonsense tone another. A manager might wonder when Attempting to take charge of a team without and serious personality can make one seem the subordinate will start to work up to predetermining its strengths, weaknesses and unapproachable, distant, especially to those expectations, while that same subordinate compatibility is like getting behind the wheel who are outgoing. Such miscommunication may simply begin to look for another job. The of a car without first knowing where the gas typically causes great rifts throughout a truth is that if each one could understand the pedal, brake and gear-shift are. When driving department or an entire dealership. reason for the other’s behavior, more harmony this way, you would expect mishaps and and accord exist. confusion. While it is possible to modify management techniques, it is obviously easier to hire the Three ways to help reduce turnover rates: person who is best suited to the environment. 1. Define your agency’s corporate The one who, from the start, will be a good fit culture with the team, a hire who is likely to respond 2. Know that the first step in employee Carol Martin is a Senior Consultant to the natural interpersonal communication retention lies in employee selection with The Omnia Group. She can be style of the prospective manager. Before 3. Learn how to communicate contacted at 800.601.3216, or by email at taking on new employees, it makes sense to effectively with your employees cmartin@autosuccess.biz. screen them to help weed out those who might quickly become labeled “high maintenance.” Increase Sales by The wrong person for a particular workplace or a particular manager can be a frustrating and costly mistake. 20% in 10 Minutes Example: When Janet, a long-time favorite employee, was promoted and needed to be replaced, the dealer and general manager were hoping to find someone like her. They interviewed several candidates then hired Amanda, who seemed as self-starting and cooperative as Janet. Soon after, however, the Stay in contact with all ups manager noticed that Amanda was making an inordinate amount of mistakes. She also Receive total data based management seemed more aloof than he remembered her being at the interview and certainly was no Janet. After months of mutual frustration, Daily management reports you can use to heated discussions and several warnings, manage your people Amanda was fired. Hoping to avoid another time-consuming FREE FTC “Do Not Call” daily and financially draining bad hire, the synchronization and alert to help you dealership decided to have Janet take an employee profile. The results revealed that aviod an $11,000 Þne Janet possessed two very dominant traits that Amanda had clearly been lacking: Janet was The Koons Automotive Group sold over 44,000 vehicles last year with the help meticulous in her work and very diplomatic. With a new understanding of what they were of ProResponse looking for, it did not take long to find Susan, -Alex Hafer General Manager whose profile showed strong similarities to Janet’s. Susan was hired and has proven to ProResponse is the only system I have ever used where the sales people are be a happy, productive and quality-conscious actually motivated to use it. Our new car sales are up 21% in one year. employee – just like Janet. -Jeffrey Abel President Miller Toyota Managing Susan is easy too, because her boss knows she works best when given clearly Our closing ratio has improve 38% and our “be-backs” have nearly doubled. defined objectives, specific instructions, When we first implemented ProResponse we averaged 160 cars a month, an and frequent feedback regarding her job average month is now 350! performance. Letting her work with little -Kevin Cohan General Manager, Jim Coleman Cadillac Infiniti Toyota oversight would be a big mistake and could RORESPONSE cause her to flounder when ambiguous situations arise. Her manager knows her traits and uses her profile to coach and motivate (while avoiding the employee’s own demoralizers), there exists a greater sense of mutual understanding, well being and team spirit. Limited Exclusivity. Call us before you competition does! When difficulties, challenges and disagreements are prevalent in the workplace, employees and employers often blame one 800.453.8211 october 2004 15
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  • 18. fs feature solution PatrickLuck Dealers Generate $500k in ADDITIONAL PROFITS LAST MONTH The Marketing Revolution Part 1: Dealers are using select 3rd party lead their results. The best part about Internet There is a marketing revolution taking providers to generate leads for their staff marketing is that everything is measurable place where dealers are changing how they Part 2: Dealers are setting up websites so so it is important to evaluate how many advertise by targeting their marketing like they can generate their own leads also leads you get and what the closing ratio and a rifle rather than shot gunning with mass Part 3: Dealers are using the right tools & cost per sale is by source. “We measured media. The two biggest shifts in the market processes to increase the closing ratio of our lead activity for 90 days and we cut all are the use of low cost advertising that is their leads of our poor performing lead providers. We more measurable than traditional advertising Part 4: Direct Mail and Email Marketing only kept the great performers and the lead like the Internet and direct mail. Mass media aggregators like Dealix are the best because is increasing in cost and decreasing in the Part 1: The Lead Providers the closing ratio is much higher when you return. This has been brought on since the Lead providers give dealers leads every have the right information to contact the newspapers have consolidated and there are month in their geographical area. The reason customer and the cost per sale is under $200 more TV and Radio Stations reaching less dealers use lead providers is because these per vehicle,” explained Robert Revere from and less people. At the same time, almost 3rd party buying services have a national HouseofCourtesy.com. 80 percent of shoppers use the Internet to presence in the market and have online research before they buy a car compared to advertising that gives them exposure Used Car Lead Providers less than 30 percent of the shoppers that use to customers that the dealer may not Dealers have had a lot of success with selling the traditional advertising mediums like TV, otherwise be able to reach. In addition, some used cars on the Internet because it is a lot Radio, Outdoor and Print. As a result, the customers prefer to interact with a 3rd party easier for a customer to spend time on their Internet and targeted marketing has emerged because they feel they will get unbiased and computer searching dealer inventories than if as the most effective way for dealers to objective information they can trust. This they had to spend all weekend driving around advertise for less cost and they can measure is the first step most dealers take because from store to store. Used car lead providers everything they spend. they can start getting leads immediately list dealer’s inventory on their website and from these 3rd party providers so they have customers inquire on the exact vehicle they Can you Make Money on the Internet? enough leads for a full time person who can want. The unique part about used vehicles “Last month we sold over 200 cars over the get them results right out of the gate. There is that every one of them is “one of a kind” Internet for $2400 gross profit per vehicle. are 2 basic types of lead providers: New car so the closing ratio and the gross profit can We have increased our sales by 179 percent lead providers and used car lead providers. sometimes be higher when compared to new over last August by using the web to attract vehicles. “We are #1 for sales of Honda more traffic for less cost compared to our New Car Lead Providers Certified vehicles and we don’t even have a traditional advertising. We spent $100k less New car lead providers give dealers leads used car lot. We are land locked and we sell in advertising while we almost doubled our from their own website. Lead providers most of our used vehicles on the Internet. We sales and profitability and we can measure can charge anywhere between $20-$35 per make more money on used cars online than where every dollar is going,” said Brian lead and they vary greatly in the quality of we do on new cars because the average gross Benstock from Paragon Honda & Acura. the leads they sell. Some leads have a low per sale is much higher,” said Benstock from Robert Revere from HouseofCourtesy.com closing ratio and a high cost per sale while ParagonCars.com. In addition to receiving agreed, “We sold 277 cars online last month others have a high closing ratio and a low a lot of Internet leads on used cars, most and we became the #2 Chevrolet dealer in cost per sale. The key to buying quality leads dealers will receive 5-10 times the number the country because of what our Internet and is to make sure that they are not “duds”. of phone calls from used car lead providers. BDC department generated.” In this article, There is a new type of lead provider called “In addition to the Internet leads we get, we we will give you a summary of how you can an “aggregator”. New car lead “aggregators” get more than 100 calls from having our use the Internet and targeted marketing to filter and clean leads before they give them cars on AutoTrader.com. In addition, we make more money for your dealership. to dealers to check to see if they are “duds” link customers to our website directly from and to ensure they are higher quality and AutoTrader.com by simply asking them to What are the best dealers doing to make thus get a higher closing ratio. For example, add a link with ParagonCars.com to increase more money online? an aggregator will scrub the leads and the traffic to our own website also,” added We researched how the best dealers in append the leads to ensure that the contact Benstock. the country are shifting their advertising info is not bad and they will sometimes add to attract more customers for less cost by information that is important to a dealership Part 2: Dealership Websites leveraging targeted marketing. We have like the phone number and other information The second part of the most successful summarized what they are doing in 4 parts. that helps the Internet sales person improve dealerships Internet strategy is their website. 18 www.autosuccess.biz
  • 19. The best dealers typically generate a lot of for Internet sales people to manage these are. It doesn’t convey any compelling leads directly from their own website. The opportunities over many months. These reason for the buyer to favor your dealership leads from a dealerships website typically tools will create daily calendars and follow over another. It doesn’t make a case for the have a higher closing ratio than the leads up plans to remind the sales person of who to product or service you sell. they buy from 3rd party providers and the call and when to call them. In addition, most average cost per sale is usually lower. Most of the tools come with templated emails In contrast direct response advertising’s dealers recognize this but they do not have to send to different customers in different very name is self-explanatory. It is designed enough leads from their own website to situations. Dealers and managers like the to evoke an immediate response or action sustain their growth. The first challenge is fact that these tools make it easy for them to – a visit, a call, or a purchasing decision that they do not know how to attract the monitor their advertising return, their people, from the buyer. The most effective form of traffic to their website and if their site does process and results by giving them accurate direct response advertising is direct mail. It not get traffic it won’t generate leads. The reports that are automatically generated. In presents factual, specific reasons why your second challenge is that many dealerships total, these tools help Internet sales people company, product or service is superior to have templated websites that don’t do a good improve their response times, appointments, all others. Direct mail advertising directs job turning website browsers into leads. The sales and follow up because it does some people to action. It compels readers to call best dealers have the right Internet marketing of the work for them. “We increased our you or drive their car down to trade it in strategy to drive traffic to a website that is closing ratio from 7-25% in one quarter on a newer model. Used effectively, direct effective at converting visitors into leads and according to Honda’s Excel Report because mail can produce tons of super qualified sales. “We actually set up our own regional our CRM tool automates most of the process ups. At its best it literally compels people to buying service at www.RedMcCombs.com for us. Buzztrak automates the initial call, visit and buy. And you can analyze the and we sold 500 vehicles last month online,” responses and 90% of the follow up during value, profitability and performance of your explained Rad Weaver from Red McCombs. the sales process and after they buy the car. advertising. The key to a great website is that it should We are currently handling over 1000 leads market the entire dealership and it should with only 3 people because most of their job “We integrated our direct marketing and generate a lot of leads. The key to generating is automated. The best part is that it frees email marketing campaigns to attract a lot of leads is to get a website that has a our team to spend more of their time selling customers to our website and our dealership. high “conversion ratio” which means that appointments and cars rather than spending We hired J&L Marketing to set up and it converts a high percentage of browsers time sending emails,” said Benstock, co- implement the whole direct mail program. into leads. In addition, the best websites owner of Paragon Honda. In just the first week we sold over 50 units do a good job setting the dealership apart for more than $100,000 in gross profit. In from their competition by sticking out Part 4: Direct Mail & Email Marketing addition, we continued to deliver vehicles amongst the bland cookie-cutter sites that Dealers are frustrated by the high costs of weeks after the event.” said Brian Benstock all look the same. “After we changed our mass media and the decrease in the return from Paragon Honda. Benstock continued, manufacturer templated website to our they are getting. Mass media is undergoing “direct mail has replaced a lot of our new website we generated over 700 leads a major shift because it is difficult for newspaper advertising because we have been and we sold 106 units the first month,” advertisers to target the right audience. In able to increase our traffic while spending a said Jennifer, the Internet director from addition, consumers are using satellite radio lot less money and the cost per sale is almost www.ParagonCars.com. The best dealers and tools like TIVO to skip commercials half of what we used to spend.” have websites that generate a lot of high thus undermining advertiser’s ability to quality leads to their Internet department reach them at all. Newspaper costs continue Just Do It! and additional traffic to their phone and to skyrocket as a result of consolidation. It is obvious to most dealers that the targeted showroom as well. We noticed that the best Thus dealers who spend a majority of their marketing and the Internet is the future of dealers have a blended strategy where they ad budget on TV, radio and newspaper are automotive advertising. What makes the get their leads from their own website and a forced to pay to reach millions when only best dealers succeed is their ability to see this few high quality lead providers because both thousands are actually interested in their opportunity, to act and to follow through. In generate incremental sales for a lower cost offers. our business, failure is caused less by a lack of per sale compared to traditional advertising knowledge and more by a lack of execution. mediums. Almost every Print ad, Radio or Television I hope this gives you the information and commercial, even some Direct Mail pieces the inspiration to take action and to improve Part 3: The Right Tools & Processes are institutional – type advertising. At best, how your marketing, attracting, selling and When dealers set up the right lead providers that produces deferred results. At worst keeping your customers. and website they usually don’t have a – and this applies to 95% of all advertising problem generating a lot of leads. What out there – institutional advertising is an makes dealers money is how good of a job ineffective, vacuous, wasteful expense they do in turning their leads into sales. The that accomplishes no productive purpose challenge that many dealers face is that they whatsoever. can get hundreds of leads in one month and it can become very difficult to manage, follow No wonder most dealers state that attracting up and measure all of that lead activity with traffic to their showroom is their single out the right tools. All of the best dealers use biggest challenge in selling cars today. some type of lead management or CRM tool Patrick Luck is the Editor and Publisher to help them manage all of their leads. These Most institutional advertising tells you of AutoSuccess Magazine. He can be tools accept and organize the leads they get how great the dealership paying for the contacted at 800.331.9507, or by email at from all of their sources to make it easier advertising is, or how old and stable they pluck01@autosuccess.biz. october 2004 19