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1. Visit us online at www.AutoSuccessOnline.com
September 2008

6. September 2008
HIGHLIGHTS OF ATTITUDE
8 TomHopkins
Isaiah 9:2
The people walking in darkness have seen a great
IF IT’S ROUND IT’S NOT SOUND
9 MarcSmith light; on those living in the land of the shadow of
death a light has dawned.
8TH HABIT LEADERSHIP
Part 2 10 StephenR.Covey address:
3834 Taylorsville Rd.
Building A, Ste. 1B
WILLIS HONDA ACCELERATED FROM 60 TO 130
INTERNET UNITS IN LESS THAN 60 DAYS 12 An Interview With
JanelleKershbaumer
Louisville Kentucky 40220
phone / fax:
SERVICE: CHANGING THE SIMPLE MAILER MINDSET
14 ChuckPatton
& TriciaPatton
877.818.6620 / 502.588.3170
web:
AutoSuccessOnline.com
RED FLAG RULE AND YOUR DEALERSHIP
16 JasonBlair AutoSuccessPodcast.com
team:
CONVERSATION WITH ERIN
17 D.J.Harrington Susan Givens
Publisher
sgivens1@autosuccessonline.com
POLICY AND PROCEDURE FOR PROFIT
18 MarkProctor
Thomas Williams
VP & Creative Director
22
SMALL COST...BIG REWARDS design@autosuccessonline.com
DougBurkert
AND A LOT OF LOST GOLF BALLS Dave Davis
Editor and Creative Strategist
THE CULTURE OF TEAM
Part 1 24 JimAdams ddavis@autosuccessonline.com
Brian Ankney
A CRYSTAL BALL IS NOT ENOUGH
25 SteveBrazill Sales-Improvement Strategist
super6@autosuccessonline.com
general information:
SPECIAL FINANCE REALITY
CHECK: THE SKY IS FALLING! NOT 26 HelmiFelfel info@autosuccessonline.com
eNewsletter:
CAN YOUR STAFFED EVENT COMPANY
DELIVER WHAT IT PROMISES? 30 MattBaker enews@autosuccessonline.com
BILL WALSH AUTOMOTIVE TAKES ADVANTAGE
OF THEIR WEB SITE TO INCREASE TRAFFIC AND 32 LarryCochran
INBOUND SALES CALLS AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd.,
Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170.
Direct all subscription and customer service inquiries to 877.818.6620 or
PROFOUND ADVISE - 45 TO THRIVE
33
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for their return). All submitted editorials and graphics are subject to editing
for grammar, content and page length. AutoSuccess provides its
34
contributing writers latitude in expressing advice and solutions; views
COUNT TO 10 AND WIN PaulD.Cummings expressed are not necessarily those of AutoSuccess and by no means
reflect any guarantees. AutoSuccess accepts no liability in respect of the
content of any third party material appearing in this magazine or in respect
of the content of any other magazine to which this magazine may be linked
INTERNET SALES 20 GROUP XI
36 SeanV.Bradley from time to time. Always confer with legal counsel before implementing
changes in procedures.© All contents copyrighted by AutoSuccess
Magazine, a Division of Systems Marketing, Inc. All rights reserved.
Reproduction in whole or part is prohibited without express written consent
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26 36 helping to support...

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8. STS
TomHopkins
HIGHLIGHTS
OF ATTITUDE
You must work on Then, every morning make a commitment Procrastination can also negatively affect
keeping your own to live in the present moment. The present your attitude. Never do tomorrow what you
positive attitude every day. Too many people moment will determine your feelings, can do today. Procrastination is a disease
in automotive sales wait for a good client, an your attitude toward the day — which will that many of us have. Procrastination
easy sale, a motivational meeting, a seminar determine your productivity. So by the is defined as living yesterday, avoiding
or their manager to provide motivation. negativity of yesterday you are ruining the today, and thus ruining tomorrow. If you
future. Let it go and live in the present. have this disease, remember it takes 21
The day you turn pro is the day you realize days to effect a change. If you will give 21
that attitude in selling is everything. A good Want — but don’t need — everyone’s consecutive days to working on overcoming
attitude is something you must cultivate and approval. You’ll never get everyone’s procrastination, you will overcome it.
grow within yourself. The most important approval. There’s always someone who
things you carry with you every day are will say they don’t agree with you, they How do you do this? Do it now. Successful
your enthusiasm and your excitement for the don’t believe in what you believe or that people do the things average salespeople are
job you do in serving people. something you propose just can’t be done. afraid to do or stop just short of doing. They
Don’t take advice from anyone more messed do what they fear most. By doing those
A key element in a successful automotive up than you are. If you do, you are letting things you fear most, they will become your
sales career is to realize that people say them determine your attitude that day. strengths and carry you forward to success.
“yes” to you based more on your conviction
and your enthusiasm than anything else. Another thing to work on is anger. Anger can And finally, realize that one of the keys
And if you don’t have it inside you, you cost you not only income, but relationships. to a good attitude is to really be proud of
won’t be able to transmit it to others. Control your anger. Don’t get mad — turn what you do. In our country and our times,
other people around. What does that mean? people need vehicles to get to their jobs, to
So how do you get this attitude? First of all, When talking with an angry client, be kind, spend time with their loved ones and to do
you must get rid of some of the things in the be gentle. Let them know you are glad their chosen work. You help those people
past that might be holding you back. Stop they called. Not only will they appreciate to have the right vehicles for their needs at
dwelling on your failures. You can’t change this, but also after two or three minutes of investments they can afford. And you’re
the past — it’s gone forever. Throw it out venting their anxiety and emotions, they will good at it because you know your inventory.
and don’t dwell on it. Every time you let probably apologize for losing their temper. You are a great listener when potential
it take over your thoughts, you’re reliving Now you have won a client by not matching clients explain their needs and you’re a great
negative emotions. Why would you want to their anger with yours. communicator. All those traits help you to
allow that to happen? help them make wise decisions and you
Don’t demand fairness. Many of us get benefit for providing that valued service.
If need be, take a few minutes now to down when we have lost a sale to our
envision any past failure that’s sticking with competition or because our potential client Walk with your head held high because you
you. Picture it on a chalk board or white changed his or her mind. Don’t sit back and chose the profession of selling. Go out and
board. Then mentally erase it. Get rid of say, “That’s not fair.” You’re a grown up, do the best job ever.
it. If you’ve been dwelling on it for a long not a little kid. Let it go. If something is not World-renowned master sales trainer Tom
time, you may need to do this exercise more fair, do what you can to change it, but don’t Hopkins is the chairman of Tom Hopkins
than once (like whenever it raises its ugly dwell on it if something doesn’t go in your International. He can be contacted at
head), but do it. Erase that bad experience. favor. You’ll find things in your life that may 866.347.6148, or by e-mail at
It’s holding you back. not seem fair, but that’s just the way life is. thopkins@autosuccessonline.com.
8
www.autosuccessonline.com

9. MS
MarcSmith
marketingsolution
IF IT’S ROUND
IT’S NOT SOUND
We all know that he would see what he could do. He would selling price, consider doing it in even
$1.99 sounds better excuse himself, returning shortly with a final amounts. You see, any time it is difficult for
than $2.00, and judging by its success in proposal. With a slight nod he would tell the the customer to compute the adjustment or
the retail world, we know that this type of customer that we were close. “I need your discount, they tend to see little difference
marketing works. But why? I recently read help. I need another $379.16,” he would say, between the original selling price and the
an article about how to price real estate to and then wait for the customer to respond. I discounted price. Suppose you wanted to
make it more attractive to the buyer. The can’t tell you how many times the customer drop the selling price of a car from $32,854
author remarked on how most people don’t would close on the uneven figure. to $31,950. Showing a number like $31,854
understand what appeals to the buyer when would make it easier for the customer to
pricing their property because they are This is also an effective technique when calculate the savings. When the digits on the
pricing it from the seller’s point of view. trying to bump the customer’s payment. The left are the same, customers tend to group
customer may be at $465 but you need to these together and focus more on the digits
When you think about it, what does the be around $550. In this example, you would on the right. In other words, if the price is
consumer look for in the price? Research want to present the customer with a number $32,854 you may want to reduce the price to
shows that consumers tend to look in blocks like $546.63. Many managers today would $32,654.
as to what they want to pay. For example, still send someone back or take a T.O. and
people will look at properties between ask for another $100 to $200. Remember, The next time you are negotiating,
$100,000 and $199,000 or $300,000 to you appealed to the customer’s emotions on remember, if it’s round it’s not sound.
$399,000. If you were to take a property that the selection of their new vehicle; now you
you have listed for $310,000 and reduce the need to focus on their logical side. Marc Smith is the senior vice president
price to $299,900, the number of potential of The Cardone Group. He can be
buyers would increase. The research After the initial presentation of payment contacted at 866.665.4479, or by e-mail
suggests that round numbers, for example or down payment, always focus on the at msmith@autosuccessonline.com.
$400,000, may convey quality, but a precise difference. When
number like $395,385 indicates a bargain. the customer is
In other words, an uneven number gives the taken from $465
impression that some thought has been given to $546.63, for
to pricing. At this price, buyers believe they example, you
are not only staying within their $300,000 want to present
block, but are getting more value. the difference of
$81.63. Not only
YOU HAVE CUSTOMERS
These strategies can be applied in the will it look better
negotiation process when selling a car. In the to the customer,
AND PROSPECTS.
early 1990s, I was working for a dealership but will make
in the used car department. To this day, the it easier to
manager who I worked with was one of break down the
the best closers I have ever met. One of the number into
things I learned from him was the principle an everyday,
of structuring a bump. The bump is when
you may or may not have a deal, but you
small difference
throughout the WE HELP YOU GET
want to improve on the offer the customer
has made. For example, instead of sending
negotiation
process. A LOT MORE MILEAGE
me back to the customer for another $500
down, the manager would send me back When it comes OUT OF THEM.
asking for another $484 down. This seemed to discounting
to work better than asking for $200, $300 or the price, it
$500 down, which many previous managers works a little Let’s roll.
had suggested I do. Again, an uneven differently.
number appears to have taken some thought Research has
and calculation in order to justify the request. shown that when
It is more likely to be real and sound. A negotiating an
round number appears to be fabricated out of odd amount
thin air. of a discount,
the customer 866-964-6397 imnLoyaltyDriver.com
If I were to be unsuccessful in getting the may perceive
customer to bump up to the $484, he would the number
then come out to meet the customers face-to- as a small
face and give it one more try. If the customer amount. When
9
would still not budge, he would tell them that dropping the
the #1 sales-improvement magazine for the automotive professional

10. LS
StephenR.Covey
leadershipsolution
8TH HABIT LEADERSHIP
Part 2
In my last column, I truly unique, contribution of management organization, depersonalized in their work
pondered the in the 20th century was the fifty-fold and more motivated to sue than to support
millions of dollars organizations spend on increase in the productivity of the manual the firm when things get tough.
leadership development without achieving worker in manufacturing. The most
any significant breakthrough in leadership important contribution management needs What is the key difference between the two
effectiveness. I think I know why there’s to make in the 21st century is similarly to mindsets? It is summed up in what I call
no breakthrough. increase the productivity of knowledge the “8th Habit” of effectiveness: Find your
work and the knowledge worker. The voice and help others find theirs.
Those millions are wasted because most valuable assets of a 20th century
our models for leadership training are company were its production equipment. The “8th-Habit” leaders see people
hopelessly out of date. We are stuck in The most valuable assets of the 21st century differently. She does not view people
a mindset of leading organizations from institution...will be its knowledge workers.” as “functions” or in terms of a “job
a controlling Industrial Age model that description.” She views people as
absolutely suppresses the release of human In the Industrial Age, you could treat endowed with unlimited potential. She
potentail. As a result, we continue to train manual workers as interchangeable parts therefore sees her task as helping people
leaders for an age that is receding rapidly — all you needed was someone who could see in themselves the tremendous value
into the past. We need to shift our entire follow procedures. When all you want is and contribution they can bring to the
mindset if we are to educate leaders for the a person’s hands, you don’t need to be enterprise.
Information Age. concerned about the heart or the mind. All
you need to know is how to manipulate Instead of limiting or controlling people,
Consider what happened in the 19th century, people — and that sums up most of what is she seeks to understand them deeply — to
when the Agricultural Age gave way to the called “leadership training.” understand the profound potentialities in
Industrial Age. When the factory showed each individual, so they can be freely and
it could outproduce the family farm by Many will say, “We know all about the voluntarily unleashed.
fifty- or a hundredfold, a lot of people were Information Age. We’ve long since made
threatened. Protesters of industry, called the adjustment. We no longer manage This is the essence of “8th-Habit”
“Luddites,” attacked and burned factories workers as interchangeable parts. We value leadership, what I call “helping others find
because they were fearful of this new way them as intelligent contributors,” and so on. their own voice” — To communicate to
of thinking. Inevitably, though, 90 percent That claim is tough to reconcile with recent people their worth and potential so clearly
of farmers had to find a new way to make findings from a joint FranklinCovey/Harris that they come to see it in themselves.
a living. Interactive xQ poll. Fewer than half (45 Think about this definition. Isn’t this the
percent) of U.S. workers feel that their essence of the kind of leadership that
Do you believe that the age we’re moving contributions at work are valued. About profoundly influences and truly endures?
into will outproduce the Industrial Age by three out of five workers (59 percent) feel
50 times? Do you have any doubt about it? that the organization does not tap into the Originally ran in CLO Magazine
I believe that this new age will eventually best of their talents and passions.
bring about a downsizing of 90 percent of
the Industrial Age workforce. Imagine what Consider this analogy. If your stockbroker
it will take for leaders to succeed in the were allowing three-fifths of your capital
midst of this dramatic shift. to go uninvested, you would fire him. Yet
we continue to manage people wastefully Stephen R. Covey, Ph.D., is co-founder
of FranklinCovey, and is the author of
In Management Challenges for the 21st with our Industrial Age mindset instead
the best-selling The 7 Habits of Highly
Century, Peter Drucker compares the of leading them with an Information Age Effective People. He can be contacted at
Industrial Age with today’s Information mindset. When treated as interchangeable 866.892.6363, or by e-mail at
Age: “The most important, and indeed the parts, people are alienated from the scovey@autosuccessonline.com.
10
www.autosuccessonline.com

11. The Choice is Yours...
DOOM OR Bloom
“My market’s dead. Nobody is buying.” “It’s a challenging economy, but G&A’s
Staffed Events are helping me grow
my business and market share.”
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August 6 - 9, 2008
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big trucks.” G&A staffed event were SUVs and big
trucks.”
GM Dealer, Texas
32 Units Sold, $123,500 Gross Profit
August 6 - 9, 2008
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Independent Used, North Carolina
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“If things don’t turn around soon, I’m “I can’t afford to lose my best sales-
afraid I’ll lose some of my best people and managers. G&A’s event
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boosted the energy and morale at my
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70 Units Sold, $278,500 Gross Profit
July 29 - Aug. 2, 2008
gamarketing.com
800-688-1370
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12. FS
Willis Honda
out how many computers we needed, and Video Search Engine Optimization went owner has another store, Davis Acura in
featuresolution
included the software and browsers that a long way to boosting our visibility in Pennsylvania, and we are consolidating our
needed to be installed on the machines. The the search engines. One of our YouTube online marketing efforts for both stores to
document even estimated what it would cost testimonials is now on the first page of create a centralized operations center. We
Accelerated From
us to outsource the IT to a local company. Google results and gets a lot of click-thrus. have 19 work stations available, and our
We also use video testimonials on the home goal is to achieve more than 200 unit sales
60 to 130
AS: How did they help with people page of our Web site. in the next 60 days.
and the process?
AS: After the Internet restructuring We don’t do it all by ourselves. We use the
JK: Dealerships often underestimate the
did you feel like an expert? monthly support services provided by our
value of their People. We agreed that
Internet training team. This provides us
Internet Units in less than
this was a make-or-break proposition. It JK: I sure knew a lot more than I did before with call monitoring, mystery shopping and
was critical to have the right staff to hit we started working with the team, but I analysis of our leads in our software to help
60 Days
the numbers we wanted to achieve. The believe there is always more to learn. Earlier
With Help From us save deals, and focus on specials which
company mapped out our HR growth plan, this summer, Dealer Synergy held their first can increase our marketing opportunities.
helped create profiles, job descriptions and Internet Sales 20 Group, Internet Director Their support program provides us with
pay plans. When it came time to staff up, Immersion Program. This is a five-day
An interview with access to their support team and regular
they posted all of our recruitment ads on program designed for Internet Directors; I
JanelleKershbaumer onsite phone training sessions for our team.
Career Builder, Monster.com, WorkPhilly. wasn’t sure I needed it at this point but was Working with our new system, we went
com and Craigslist. curious and I must say I am glad I attended. from $75,000 monthly gross profit to over
AutoSuccess would like to congratulate on our volume. We didn’t just want to boost Process and Promotions. We started with $260,000. The results clearly show we
Willis Honda for their incredible sales our sales a bit — we wanted to be a strong, our Products. We were not satisfied with our Additionally, they took all the initial calls,
Unlike a lot of Internet training which found the right partner to build our success.
effort and taking their Internet delivered powerful competitor and be one of the current Web provider, so after listening to reviewed the resumes, conducted the
gives you and overview but little detail, the
vehicles from 60 to 118 units in a 30-day dominant stores in the market. our concerns about our current site, Dealer preliminary screenings and set up second
Immersion Program really got into the nuts Sean V. Bradley is the founder and CEO
period. Then, 30 days later, they boosted the Synergy recommended another vendor to interviews for me. I have to say that this of Dealer Synergy, a nationally recognized
and bolts and what it means to be an Internet
number to 131 online units. Some of you AS: You brought on Dealer Synergy consider. TK Carsites had just introduced a was a tremendous resource because I didn’t training and consulting company in the
director. We covered, in depth, all of the
reading this article may be saying, “Well it’s to assist in your efforts. How did you new technology that helps dealers in getting know exactly what to look for, and this automotive industry. He can be contacted
technology components including Web sites,
a Honda store, so that’s not unusual.” But as select them? better search engine positioning. We found process is cumbersome. at 888.814.0409, or by e-mail at
lead management and customer relationship
Paul Harvey says, you need to hear … the their design team well grounded in the areas sbradley@autosuccessonline.com.
JK: We researched them online, and were Once Dealer Synergy was onboard, they software; call monitoring, loyalty and
rest of the story. impressed with their site design and content. where we needed assistance. went through a five-day onsite training rewards programs, and facility design and
Next, we Googled them, and looked for program. It was very detailed and included structure. I would highly recommend to
Willis Honda is not a huge facility in a brand Our Internet training company then all my peers to try and attend one of these
new luxurious showroom in an upscale them on YouTube, and found that the how to become a “Phone Sales Ninja,”
showed us how to leverage YouTube video sessions.
suburb of Philadelphia. In fact, their modest, company and its CEO, Sean V. Bradley, along with how to handle the e-mail leads,
testimonials to boost our dynamic content
off-the-beaten-path dealership in Burlington, were all over the search results. Previous incoming and outgoing phone calls. We
on the Web. Next, we reviewed our lead AS: Can you tell us about your
N.J. barely has room for one vehicle in to this effort, we had looked at other learned how to be the best coordinators on
management and CRM process. We had results after working with your
their showroom. They compete against Internet Training company’s sites and were the planet. The training was intense but I can
a basic system in place but it wasn’t too Internet training company?
larger, better positioned Honda stores with disappointed at their search status, the lack honestly say our team enjoyed the process.
effective; they assisted us in picking out a
of depth on their Web sites and how they Naturally during the training we spent a lot
newer facilities and better inventories, better tool. Then they supplied us with a JK: They were certainly a results-oriented
and somehow this “underdog” dealership presented themselves online. If we were of time on establishing the Process. They
library of more than 30 e-mail templates company. Our department began with
has created excitement in the market and going to hire a company to build our online created custom checklists, procedure policies
built to escalate the e-mail to the phone just me and two other people. Now a few
achieved what many said was impossible. presence, we wanted to see that they were and books we could refer to for information
call. They even provided a library of months later, my department has grown to
We caught up with Janelle Kershbaumer, the able to build their own, as well. and tips on managing the day-to-day
voice mail scripts, which turned out to be 14 coordinators and two assistant directors
Internet Sales Director for Willis Honda and operations. We found that when you stick to
incredibly valuable for us. We sometimes to handle the 131 units online in a month
spoke with her to find out how they worked AS: How did they begin when they the plan, you will get the results you want.
had issues handling phone objections, but we are selling. We moved our department
their magic. came in? into an off-site facility across the street,
they provided us with a list of common AS: How did they help you promote
JK: First, they set up an in-store objections customers use and then scripted your dealership? which used to be a Suzuki dealership. Our
AS: Janelle, how many units were rebuttals for our sales team to utilize. I was
you delivering online about six consultation. They came into our dealership
and analyzed our dealership for literally so impressed with these that I made up JK: Once you have the department
months ago? posters for our call center, and on each one organized, having the proper Promotion is a
hours. It wasn’t like an interrogation, but a
JK: Our store was averaging about 50 to thorough review of our systems, our DMS, is an objection, and the beginning of the key factor in determining your success. Our
60 units online. We didn’t have any fancy our CRM and our lead management process. script for the rebuttal. Now anyone working Internet training company was particularly
system, just worked our Web site, called our We naturally reviewed our Web site, lead the phones in our center can look up and see strong in this area and helped us initiate
lead prospects, and it helped that we were generation and even our computer hardware. these posters, so we don’t stumble when we some very creative and cost-effective
selling Hondas. We knew we were missing We were also pleasantly surprised when get hit with an objection now. This was so promotions. They designed campaigns,
opportunities, but weren’t sure how to begin conversation turned to human resources popular we printed 90 T-shirts with these crafted micro-sites, showed how we could
or revamp our process. and we discussed our staff, their job objections and responses on them, and our use press releases to gain more local
descriptions, qualifications, hiring process… team wears them every day. visibility and made us aware of online
AS: Okay, so what got you moving to you get the picture. It was very in-depth. reputation management. While the Internet
initiate some changes? AS: Did your Internet training is a positive growth medium, there are some
AS: What were the first steps they company provide any assistance in people who use it in a negative way, so
JK: We were tired of missing the boat. We took when they were brought on- acquiring the right hardware? we found it very important to monitor our
knew we had some good raw skills, and that board? reputation on the Web. CarFolks.com was
the Internet part of the business was going JK: They had a senior IT officer from one of the tools we found that offers us a
to continue to expand, but we were lacking JK: We learned that a dealership’s Internet their company make an onsite visit and he place to build our reputation and give our
13
in getting a grasp on the whole BDC aspect department is maximized or underutilized created a scope requirement document on customers a place to share their experience
12
of a department and the impact it could have in four key quadrants: Products, People, our location and physical setup. It mapped with other consumers in our market.
DTX is a registered trademark of Detroit Trading Company.

13. MS
ChuckPatton & TriciaPatton
marketingsolution
SERVICE: CHANGING THE
SIMPLE MAILER MINDSET
The days of customer with an offer is still the most • Frequency demonstrates Consistency
simple and effective way to touch a customer, it is • Consistency breeds Familiarity
minimal service marketing have come and important to understand the difference • Familiarity creates Confidence
gone, and it’s time to adopt a newer, well between a simple service coupon mailer vs. • Confidence cultivates Trust
thought-out plan of attack. What must a an intelligent service marketing program. • Trust is why people buy
dealer do to think outside the box in this
economy? As a first step on the path to Planning and Frequency Dealers are achieving record months in this
securing your dealership as a market gainer The most obvious difference is that a down economy. Amazingly, we work with
in a sea of dealerships posting continual program plans out further than the next 30 and talk with many dealers out there that
losses, you should stop the simple coupon to 60 days. A service marketing program have achieved record months in service and
mailer mindset. will provide a long-term written plan of parts gross sales over the recent months.
not just what service offers will run next Yes, that’s right — service departments
Success was a numbers game. Previously, month, but rather which offers will run with record sales months in May, June and
a service department could depend on to which customer groupings for the rest July 2008. How is that possible? Isn’t the
new vehicle sales to continually feed of the year, and the plan will provide a economy terrible? Aren’t sales way down?
the customer pool. And if they weren’t method for measuring and adjusting the
capturing enough of those new potential message as customer behaviors shift. This impressive success has occurred
customers, they could look to steady flow because the message being conveyed in
of warranty work and internal work to Reach vs. Frequency: the marketing programs was consistency,
keep service bays full. If they experienced Understanding the Difference confidence and trust. Strategically targeted
a slight dip in RO traffic, a quick fix “Reach” is the number of customers that mailers were sent out as a part of a planned
was to send out a coupon mailer with an you market to, and “frequency” is the program that:
inexpensive oil change. number of times you touch each customer • was consistent and planned six months
with your message. In a world with an to a year in advance by examining
Success is a service game. Dealers now unlimited ad budget and a huge co-op existing customers and their servicing
need to fight their way to the top by account, you would maximize both reach behavior
examining their processes and innovating and frequency. However, since most • was sent to markets that were
new methods and a new mindset to position dealers live in a world stripped of co-op segmented so that mailers with relevant
themselves in the black. These dealers and a shrinking ad budget, we must make messages went to targeted customers
will recognize their service department as a choice between reach and frequency. • were directed by the dealer (not their
the place where their future sales stability In real situational terms — do you mail manufacturer) and achieved through a
lies. These dealers will think past the to your entire customer database three to professional marketing partner
immediate, and ignore the inflated promises four times a year, or do you mail to a part • always kept a consistent branding
of getting 50 new customers this weekend of your database more often? A successful image and sold the value of the dealer’s
with a one-hit promotion. service marketing program will provide brand (their relationship) — not just the
a strategy to maximize your reach and manufacture brand
Service Coupon Mailer Mindset vs. a identify target markets based on the needs • were campaigns that communicated
Service Marketing Program Mindset of your dealership. confidence and care of the customers
The dealers who explode with success will and created a trusting relationship
be the dealers who stop thinking “How will When faced with the choice between
I increase business this month?” but rather reach and frequency, the golden rule of Success is a service game. Achieving
start running a strategic well thought-out advertising is: Reach without Frequency = results will be attributed to the trust that
service marketing program for the year. Wasted Money. you build with your customers and the
A “service program” is built upon the consistent way that you communicate with
understanding that, like any successful diet The service coupon mailer mindset was
determined to mail to as many customers them. Examine your service marketing
and fitness routine, these campaigns and and proactively take steps to turn it into
efforts are long-term commitments. Long- as they could, not worried about details
such as the validity of the address, if the a strategic program, giving it the same
term commitments require conscious pre- amount of attention and effort as the
planning, innovative thought, consistent recipient still owned the vehicle, how far
away they live, if they were just at the amount of absorption you expect your
behavior and examination of progress. service department to carry over these
dealership recently, etc.
Not all mailers are “just a coupon mailer.” down sales times. Changing the mindset
The foundation of an intelligent service A service marketing program mindset in service marketing will go a long way to
marketing program mindset is grounded knows that, undoubtedly, one of the biggest building long-term success.
by practices built on frequency. Frequency wastes of marketing dollars is promotional
involves several communications, designed activities that are implemented without Chuck and Tricia Patton are the founders
to uniquely address different customers adequate frequency — there are no “one hit of Traffic Builders Inc. They can be
14
based on their service behavior. While wonder mailers.” A “program mindset” is contacted at 866.859.8520, or by e-mail
the method of using a mailer to reach a grounded by the basic belief that: at patton@autosuccessonline.com.
www.autosuccessonline.com

15. STS
JasonBlair
sales&trainingsolution
RED FLAG RULE AND
YOUR DEALERSHIP
On Oct. 31, coming year. The Red Flag Rule went into mean for my dealership?” Auto dealers who
2007, the federal effect on January 1 of this year, and has engage in financing activities are required
government announced a rule that a mandatory compliance date of Nov. 1, to establish an Identity Theft Prevention
specifically deals with the prevention of 2008. Time is of the essence to fully meet Program that is designed to detect, prevent
identity theft. Identity theft is the fastest this regulation. and mitigate identity theft.
growing crime in America and is projected
to touch one out of eight people in the You are probably asking, “What does this Your program must consist of six
components:
1. Identify relevant “red flags” (patterns,
practices or activities that indicate the
possibility of identity theft) relevant to
the credit origination process
2. Detect and evaluate these “red flags”
in connection with individual customer
transactions
3. Respond to the “red flags” you detect in an
appropriate way to prevent identity theft
4. Ensure your program is updated
periodically to reflect changes in risk to
customers from your experiences and
new identity theft activity
5. Policy generation and reporting
capabilities with annual audits
6. Employee training for those involved in
the origination of new accounts
Identity theft continues to be a major threat
to and a significant concern for American
consumers. Identity theft costs time and
money for financial institutions and auto
dealers, which can create significant risks
to safety and soundness. Even worse,
such fraud wreaks havoc on its victims
by destroying credit histories, violating
financial privacy and ruining good names.
Any financial institution or auto dealer
should be vigilant and proactive in helping
to protect their customers from this serious
financial crime.
This new rule is involved and complicated
but completely manageable with the right
personnel and the right technology to assist
in becoming compliant.
“So, do yourself a favor – carefully vet
new technologies with your compliance
counsel. While certain parts of the Rule lend
themselves to technological solutions, other
parts may require some good old fashioned
subjective thinking. Be sure you know
which parts are which, and you’ll keep the
regulatory wildfires to a minimum.”
— Michael Benoit, Hudson Cook LLP
Jason Blair is the president of Dealerspan
LLC. He can be contacted at
16
866.618.8235, or by e-mail at
jblair@autosuccessonline.com.
www.autosuccessonline.com

16. STS
D.J.Harrington
sales&trainingsolution
CONVERSATION
WITH ERIN
Conversations same radio station, “WII-FM” —What’s In
with children can It For Me! Let your team members know
be fun, but challenging — especially if what needs to be addressed so that the
you are trying to give guidance. Earlier whole company gets better together.
this month, I had a special conversation
with my daughter, Erin, a 26-year-old Last week I heard Erin say, “I wish things
college graduate. Erin is working as an were better,” etc. What she was really
outside sales representative for a damage saying was, “I wish things were easier
restoration company in metro Atlanta and I wish you were better.” Make a
area. Her compensation is affected commitment to get better. In other words,
by the customer service that others in if you were going to change the world,
her company give to their customers. would you start with everyone else, or with
Something had happened recently with a yourself first?
relatively new customer who she had been
working on for several months. Most people who know me know that
my daughter means so much to me. I
“Erin,” I said, “The person that is let her know it everyday. I know that
responsible for your success in your job the parents who are reading this column
is yourself. The person who has created love your children, as well. Erin creates
your income, your debt, your relationships, her own experiences and creates them
your health, your fitness level, your whenever she wants. You also create new
weight, your attitudes and your behavior is experiences whenever you want. None
you. That’s right! Look at yourself in the of us need to blame outside factors for
mirror.” By the raised brow and obvious our inside unhappiness. I want her to take
irritation on her face, I could tell she didn’t responsibility for her happiness and for her
agree. She was thinking that I should be unhappiness, her successes (and she has a
more sympathetic and agree that each of lot of them) and for her failures, as well.
the technicians involved in this incident When you stop blaming others for their
should have been drawn and quartered for failures, you can use that misappropriated
not doing a job with her new client. What energy and redirect its focus by creating a
I was telling Erin was that the person she better situation.
sees is the person to blame so far for what’s
happening. Blaming others only ties up valuable
energy. Successful people take 100 percent
If you have a situation that’s made you of responsibility for the thoughts they
upset, please, stop complaining about think, the pictures they think about and the
it. Everyone has a situation, and yours actions they take.
probably isn’t any different from the
next person’s. Last week I heard a fellow I’m just an old fashioned dad who wants
speaker say, “Don’t belly ache over what his daughter to be better — not bitter
you tolerate.” — and have all the things in life for herself
and some day for her own family. By then
What is it that you’re complaining about? maybe she’ll be passing along similar
Examine it — really examine it. More advice to her son or daughter and will
than likely it is something that you can do remember that day when she learned that
something about. Have an office meeting she is responsible for her success — not
with everyone involved, for instance, anyone else.
to hammer out the problem and find a
solution. Change is hard for a lot of people,
but if everyone is changing at the same D.J. Harrington is an author, journalist,
seminar leader, international trainer
time, then it’s not as hard. and marketing consultant. He can be
contacted at 866.855.5781, or by e-mail
17
I reminded Erin that everyone listens to the at djharrington@autosuccesonline.com.
the #1 sales-improvement magazine for the automotive professional

17. STS
MarkProctor
sales&trainingsolution
POLICY AND PROCEDURE
FOR PROFIT
There are many shopping,” “I need to sell a car,” “help me” a lack of follow-up. The vast majority of
ways to bring a or “we have had the unit forever.” Fire him salespeople do not follow-up; therefore, it
current or future prospect into a dealership. or train him, but do it now. He is costing you is up to the dealership to require it. Look at
How we treat that opportunity is what a fortune. And it is less expensive to develop your cost to bring a single prospect in the
matters most. Let’s take a look at common and train salespeople for life than it is to front door, then ask yourself why you would
dealership problems, and recommend replace them. not do everything possible to maximize each
practical solutions that will increase the and every opportunity to do business.
bottom line without increasing expenses. You cannot have customers for life without
employees for life. Salespeople must learn Follow the Steps ... No Shortcuts
Dealerships sell X amount of units primarily how to slow a prospect down and create a Without a proper product presentation and a
based on four things: inventory, advertising, “different buying experience” if they want demo drive, all you have to sell is price, and
personnel and market conditions. The only to hold gross. They must earn the “right” to you cannot win. Statistics confirm that 97
question is how much profit you make and make the sale and a fair profit. percent of our customers will not buy a car
how much you keep? without driving it. Pretty simple stuff, yet
Policy and Procedure Basics we continue to negotiate and give shopping
Most dealerships allow salespeople access If anyone is allowed to break policy and packages to prospects who have not received
to one or more of the following: invoices, procedure without consequences, all other a proper demo or product presentation.
used car costs, appraisals, F&I rate sheets, dealership policies will never be taken Eight out of 10 buying customers list the
factory-to-dealer and consumer incentives, seriously and your ability to manage is product presentation as a determining factor
credit bureaus, computers or factor charts to reduced. The fear of losing or alienating one in their decision. Any dealer in town will
quote payments. And you wonder why your customer often results in the loss of many. take your customer, often for $100 less. The
profit is where it is; you should be grateful steps establish a structure that will allow
for what you do retain. Most of your profit is 100 Percent Management Turn
a salesperson to slow a prospect down,
given away before your customer enters the A change of face is a powerful tool. A
Establish a relationship, qualify wants and
showroom to negotiate a transaction. Nine sales manager must take a turn on every
needs, present and demonstrate the product
times out of 10 you end up “backing into a customer, sold or not (though it is equally
and ask for the sale. Eliminate inventory
car deal” to get to a certain payment, trade important in both cases). A courtesy
price lists. If your inventory is so large or
difference or allowance. Sound familiar? “T.O.” and simple question (“Thank you
your sales department is unwilling or not
A salesperson normally takes the course of for considering our dealership. Have you
required to walk and learn the inventory
least resistance. It is easier to work the desk received all the information you need
daily and you feel it is necessary to provide
than the customer. to make a decision?”) will produce an
a list, do not include prices. You are enabling
additional 10 to 15 percent in sales.
weak salespeople. Why should a salesperson
Remember what it is like to be under the
100 Percent Follow-Up … walk the lot or check with his manager to
gun at 4 p.m., trying to put something on
No Exceptions see if a new or used specific or similar unit
the books? Many salespeople and managers
Getting a name, address and phone number is available or can be acquired — much less
work every day and deal under the same
is required on all customers. It is frustrating touch the desk to get today’s selling price,
pressure.
our prospects don’t follow-up better on our market value or a turn if needed — when it’s
Scared money can’t win. First, if a sales people, so we must do a better job easier for him to rely on his two-week-old
salesperson has not done his job, he hasn’t following up on sold and unsold customers. incomplete inventory list?
earned the right to ask for a fair, just and Nine out of 10 consumers who purchased
Incoming Sales Calls
equitable profit. Say you have a salesperson vehicles in the last 12 months cannot tell
These must be handled by managers who
who’s in the manager’s office 5 or 10 you the name of the salesperson who sold
have been trained to obtain name and phone
minutes after meeting a customer needing them their vehicle. Closing ratios as well
numbers and set appointments or use a
the “absolute best,” “one shot,” saying “he’s as customer retention can be devastated by
virtual BDC/Phone Center. About 92 percent
of potential customers who are given a price
over the phone call another dealer who
“Salespeople must probably assures the prospect “I can beat
learn how to slow that deal.” There are only two things you
a prospect down can accomplish by phone. Obtain a name
and create a and phone number, and set an appointment.
‘different buying It is time to get back to basics and always
experience’ if inspect what you expect.
they want to
hold gross.” Mark Proctor is the president of Preferred
Dealer Services, Inc. He can be
18
contacted at 866.922.3541, or by e-mail
at mproctor@autosuccessonline.com.
www.autosuccessonline.com

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20. MS
DougBurkert
marketingsolution
SMALL COST...BIG REWARDS
AND A LOT OF LOST GOLF BALLS
Earlier this summer, “I teed up. I looked at the car and hit the untapped market for auto dealers. While
Allan Errington ball and it went in the hole. It bounced it’s sponsoring charity events is common,
packed his clubs, along with a couple once and rolled straight in the hole. It was opportunities also exist at corporate events.
dozen balls and a borrowed putter, and a pure fluke. Everybody knows me as a Fleet customers are a natural target, so
headed off to a company golf outing. pretty poor golfer. I’m rubbish,” he told large employers can deliver exposure
The Scotsman. “Everybody went mad. We among a broad cross-section of buyers at
The 43-year-old had modest expectations were jumping up and down like young company or industry golf days.
for the day — a break from daily work kids. It was hilarious. I win every year but
responsibilities, a bit of fresh air and it’s usually the booby prize.” It doesn’t always have to be a full-fledged
exercise, and a chance to prove to co- tournament, either. Dealers can host
workers and clients that he was much Opportunity for Dealers shootouts at company picnics, for example.
more suited to managing people than a Errington’s experience showcases the value For a relatively small premium, dealers
game of golf. of big prizes at golf outings, and it’s not the can advertise to every employee of the
first time an average Joe captured the big company and, at the same time, cement
The outing started rather uneventfully. prize. With thousands of vehicles awarded their relationship with upper management.
Errington’s foursome set out on the first tee to hole-in-one winners, auto dealers benefit
on the Hawkhills Course at Newmachar when there are big winners. Media play for A Winner on Nine
Golf Club in Aberdeen, Scotland. The Errington, for instance, went Britain-wide Errington’s hole-in-one on the ninth was
6,670-yard, par-72 championship course is — including a bit on BBC. Pick-up even not indicative of how he’d tackle the rest
described as the toughest in the area. reached across Europe and to the States of the course. He apparently lost four balls
— at golf Web sites, local papers and even in a water trap at the next hole. And by the
Errington, a self-described “rubbish golfer” the Christian Science Monitor. end of the event, he had lost 23 of the 24 he
who hadn’t golfed much more than a dozen started with. The only ball left was the one
times in his life, completed the par-four Even when there’s not a big winner, dealers that earned him the car. His fellow players
first hole with an unimpressive seven still benefit, because when dealers support took it from him so he wouldn’t lose that
strokes. He did the same on the second a charity event, they are supporting a cause one, too.
hole, and the third, and the fourth. Holes the golfer believes in and wants to be part
Five and Six also took seven strokes. If of. Dealers can get a chance to meet all of Despite his less-than-stellar performance,
nothing else, he was well on his way to the golfers face-to-face when they take the Errington has turned pro, thanks to a
earning the top award for consistency. car out to the course. peculiarity in the rules governing golf in
Great Britain. According to The Royal
Then came the money hole. That’s where Beyond that, golfers tend to have a sphere of and Ancient Golf Club rules, an “amateur
a Volkswagen Golf, worth about $30,000, influence among others, spreading the word. golfer” can’t accept prizes or payment
was up for grabs to the first golfer who And when people with discretionary income above a certain level.
made a hole in one. The car was a prize go to dealerships, they often lean toward
offered by his employer in a deal with a higher-end vehicles, and, usually don’t Errington’s okay with that. He wasn’t an
prize insurance company. With bravado haggle as much, making it a better sale. avid golfer, pretty much playing only at the
that belied his skill level, Errington joked, annual company outing. Plus, the goodwill
“It’s my destiny. I’m going to win it.” Dealers can often extend the benefit of earned at home by giving the car to his
their sponsorship by getting the hole- wife far outweighs the loss of any status on
Perhaps his string of lucky sevens might in-one signs and banners placed in key the links.
pay off. As he approached the 181-yard, places within the charity offices or at
par-three ninth hole, he said, “My average the dealership. These remind people,
score at that point was seven, and since I sometimes for up to a year, that your Doug Burkert is the president of the
was also in team seven, I said I’d hit it with dealership supports the cause. National Hole-In-One Association. He can
my seven iron,” he told the Aberdeen Press be contacted at 866.859.6407, or by e-
and Journal. Errington’s event represents a largely mail at dburkert@autosuccessonline.com.
22
www.autosuccessonline.com