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1. Read this month’s and previous issues online at www.AutoSuccess.biz
.biz
The Real Deal
Pre-approval Sale
Ben Elliott & Jimmy Peters
Moving Out of Your Comfort Zone
Improving Employee Satisfaction
Improves Customer Satisfaction
The Road to 20 Cars a
Month, Every Month
E-mail Best Practices:
Create an Effective Auto Response
How to Really Maximize
an Employee Price Program
a division of Systems Marketing, Inc. August 2005

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6. 8Moving Out of Your Comfort Zone BrianTracy
INSID Improves Customer Satisfaction 9
Improving Employee Satisfaction
Customer Service Counts
The Road to 20 Cars a Month, Every Month
10
12
BobTasca
TomGegax
JimAdams
Create an Effective Auto Response 14
E-mail Best Practices: DavidKain
... With Time to Spare
16 KirkManzo
Would Anyone Really Notice or Care 18
If Your Business Closed Today, MichaelYork
The Real Deal Pre-approval Sale
20 BenElliott
And You Are ...
22 TonyDupaquier
How to Really Maximize an Employee Price Program
24 ScottJoseph
Steering Out of Control
25 CarolMartin-Ardell
Fact Finding
26 AnthonyHall
Manufacturer or Leadership 28
Is it Marketing, the SeanWolfington
Pre-Owned ProÞtability 29
New Software Steps Up RandyBarone
In the special feature
of the July issue of
AutoSuccess Magazine, The Champion Coach
30 MarkTewart
we incorrectly stated that
Ben Freeland worked for Smile and the World Smiles With You
31 PattiWood
Freeland Luxury cars, he
is the owner of Naples
Nissan in Florida.
Leverage Your Ofßine Marketing Efforts
32 PaulAccinno
CRM Evolution
34 DanVogel
Exodus 34:2
“Be ready in the morning, and then
come up.”
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God Bless America
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8. BrianTracy
Moving Out of Your Comfort Zone
Any change, or even affected. You will experience sleeplessness, achieve them. You must begin to see yourself
an attempt to change indigestion or fatigue. You may react with and think about yourself as capable of being
anything you are impatience, irritability or anger. You will one of the highest earning sales people in your
doing, makes you often feel as if you are on an emotional field. You must take charge of developing a
uncomfortable. By roller coaster. So if you want to sell more new self-concept for sales and income that is
attempting to change, and earn more, you must increase your self- more consistent with what you really want to
you move out of your comfort zone. You feel concept level of income. You must increase accomplish.
increasingly uneasy. You experience stress the amount you believe yourself capable of
and tension. If the change is too extreme, earning. You must raise your aspirations, Your self-concept determines your levels of
your physical and mental health can be set higher goals, and make detailed plans to performance and effectiveness in everything
you do. In sales, you have a series of mini-
self-concepts that govern every activity
of selling. You have a self-concept for
prospecting, for using the telephone, for
cold calling, for making appointments, for
qualifying, for presenting, for answering
questions, for closing, for getting referrals and
for making follow-up sales. You have a self-
concept of your level of product knowledge,
your personal management skills, your level
of motivation and for the way that you relate
to different types of customers. In every
case, you will always perform in a manner
consistent with your self-concept.
Wherever you have a high self-concept,
you perform well. If you enjoy working on
the telephone, you look forward eagerly to
telephone prospecting and selling and you
do it well. If you have a high self-concept for
making presentations or for closing sales, you
feel comfortable and competent whenever
you are doing them.
Wherever you feel tense or uneasy in selling,
it means that you have a low self-concept in
that area. You do not feel comfortable when
you are engaged in that activity. You probably
avoid that activity as much as possible. This
is normal and natural. The only question is,
what are you going to do about it?
Now, here are two things you can do
immediately to put these ideas into action.
First, set a goal today to become one of the
highest earning people in your field. Then,
back your goal with action by committing to
becoming very good in every area of selling.
Second, see yourself, imagine and visualize
yourself as if you are already very good
at what you do. Create within yourself the
feeling of success and accomplishment.
Remember, as within, so without!
Brian Tracy is the chairman and CEO
of Brian Tracy International. He can be
contacted at 866.300.9881, or by e-mail at
btracy@autosuccess.biz.
8

9. BobTasca
Improving Employee Satisfaction
Turn Your
Improves Customer Satisfaction Internet Leads
We learned to curb Employee referrals into Showroom
employee turnover
and increase employee
Ask internal employees who do an
outstanding job if they know any one who Appointments...
satisfaction because might make a good fit with the organization.
customer satisfaction Offer an employee “bird dog fee” for their
hangs in the balance. help in finding a quality candidate that stays
Making a difference in employee satisfaction for a period of time (example: six months).
at your store hinges on four areas of focus:
1. Recruiting process Advertising
2. Hiring process When networking and employee referrals
3. Orientation process fail to generate a qualified candidate for an
4. Continuous improvement process immediate position, we have some great
content and helpful pointers for creating the
In this article we’ll look at recruiting out of right kind of ad:
inspiration, not desperation, and if you like 1. Sell yourself. Like a “Why Buy
what you read, you can watch for future Here?” brochure, a want ad needs
articles to look more closely at hiring, to be a “Why Work Here?”
orientation for new hires and continuous 2. Never over-promise and under-
improvement. deliver.
3. Mention in-depth training, if you
Recruitment process offer it.
Trying to recruit great people is a never- 4. Mention that a mentoring or
ending chapter in the story about meeting continuous improvement process
and exceeding customer expectations. But will be provided, if it is.
do we sometimes make decisions out of 5. Advertise that you offer monthly
desperation? To avoid being caught in a bind, associate reviews for ongoing
finding great people starts with an outlined support, and live up to that
description of each position in the dealership promise.
to define our dealership needs. This can
start with looking at our surroundings and Other sources
focusing on these three things: Here are a few more examples of where to
• Work environment look for great people:
• Job tasks and responsibilities • Job Fair: Set up a booth at your
• Job competencies local college(s) during a job fair
day.
As anyone in retail knows, there’s no such • Monster.com and other Internet
thing as a “hiring freeze” in a car dealership, sources.
and if you’re not on the lookout for talent, it
may go unnoticed. The automotive business is a sales and
service industry that can be compared to a
QualiÞed applicants fine hotel, fine restaurant or clothing store.
Whether you’re looking for a qualified
technician, superstar sales person or
Customers are willing to seek out, find and
pay more money when the service exceeds
Guaranteed...
trustworthy title clerk, the best dealers utilize
“word of mouth” advertising. The goal is to
their expectations. There’s no danger of or
You Don’t Pay!
exceeding customer expectations if we
never have a need to run advertisement don’t put an end to the revolving door that
to solicit employees and to create a is the result of employee turnover, and that
reputation in the community that qualifies starts with recruiting the right people out of
your dealership as the place to work. This inspiration, not desperation. At Tasca, we
means we need to focus on doing our best as learned a lot about recruiting the right people
effective leaders within our workplace and from our training partners, and I encourage Call today for a free estimate
community. Quality job applicants will seek you to contact me to learn more about on implementing
to find us, if we are doing our jobs. creating a recruiting and hiring process that the TIMS system in your store.
Networking will build employee satisfaction and boost
Always let people know we are on the lookout your CSI.
for quality, potential candidates. Be sure to ask
other business contacts (banks we deal with,
advertisers and even our supply vendors) for Bob Tasca III is the dealer principal of www.worlddealer.net
any possible recommendations while we are the Tasca Automotive Group. He can be e-mail: info@worlddealer.net
participating in business transactions and contacted at 866.210.1254, or by e-mail at 866.429.6826
even involved in social activities. btasca@autosuccess.biz.
august 2005
9

10. TomGegax
Customer Service Counts
Tires Plus’ customer our employee playbook, dealt with how to handled cleanly in the first place.
service was legendary. treat our guests (we called them “guests” to
I asked our people inspire the kind of service you’d find at a fine 4. Solicit and act on feedback. Create
to add a touch of hotel). You can’t inspire daymaking service as many comment channels as possible:
volunteerism to the through occasional pep talks, memos and comment cards, follow-up phone calls,
job, to try to make meetings. It’s gotta be walked, talked and complaint hotlines. You can’t get better
each customer’s day a little brighter. If we lived - day in and day out. without knowing what your customers
concentrated first on kindness and empathy, think. We regularly retained an outside
I said, healthy profits would naturally follow 2. Treat employees right. If you leapfrog service to conduct customer surveys. We
(as long as our prices and costs were in line). your people and focus chiefly on pleasing also contracted a “mystery shopper” service
customers, you’ll wind up with unhappy - for both in-store and phone interactions -
Why gun for “legendary” customer service? customers. Connect the dots, folks. Do to get an objective, in-depth look at quality
you really expect employees who feel control.
1. It keeps ’em coming back. Seat-of- unappreciated to welcome customers with a
the-pantsers spare no expense to get new big smile and a genuine desire to give them a Gathering information is pointless, of course,
customers in the door, yet often fail to provide positive impression of your company? Honor unless you act on it. We tweaked our store
a why-go-anywhere-else experience. Huge your people, concern yourself with their protocols all the time based on customer
mistake. Customers are like spouses - take well-being and respond to their grievances feedback. Every negative comment about an
them for granted and they may go elsewhere like they were customers. You’ll be employee was routed to his manager’s in-box
to get their needs met. It’s a vicious circle rewarded with invigorated, loyal employees (and copied to his district manager) so the
- businesses pour more and more resources who set new standards for performance and offender could be coached back on track.
into unearthing new customers to replace customer care.
the ones lost to neglect. Showering attention 5. Walk your talk. Leaders give a lot of lip
on customers already in the fold keeps them 3. Establish clear policies. In our business, service to their commitment to customer
in the fold, so your new customers become guidelines were essential at three customer- service. Are you among the few who follow
add-ons rather than replacements. care stages. through? When you hear of a complaint,
do you shake your head and joke about the
2. It pulls in new customers. Don’t just Initial contact. customer being an odd duck? Or, do you
satisfy customers. Astound them. Lay out Guests were greeted with WHENS: urge your people to look at the situation
the red carpet, and guests will rave to friends Welcome, Handshake, Eye contact, Name, through the customer’s eyes and do what
and family. That sends new customers to Smile. We then asked a series of questions it takes to make her happy? Do you shout,
your doors and Web site - at no additional to identify their needs. Staffers also fielded “You gave away WHAT?” Or, do you say,
cost. (Expect a dazzled customer to phone calls according to a protocol I “Good for you, you remembered our values
recommend you to two to three others.) On established in the early ’80s: “It’s a great and did the right thing.” Great customer
the other hand, one rude encounter with an day at Tires Plus. This is Jim. How can I service will wither on the vine without the
employee can torpedo every future purchase help you?” support of upper management.
from that customer, his family and friends
- and their family and friends. (Expect a Warranty service. 6. Measure and reward performance. We
peeved customer to complain to three to Sales people were trained to welcome had a customer satisfaction metric called
eight others.) Precious word-of-mouth buzz returning, non-revenue-producing guests GEI (guest enthusiasm index). Applied
- free advertising - is squandered whenever like they were new customers. The reason to individual stores and the company as
a customer has a less-than-excellent should be obvious - customers prefer to go a whole, it quantified the percentage of
experience. steady rather than have a one-night stand. customers who would recommend us to
That means coddling. friends. Below-average stores were targeted
Six ways to win legendary customer for extra coaching. It took a lot of sweat to
loyalty: Customer complaints. push up our GEI one percentage point. Darrel
We welcomed them. No, seriously. They Blomberg, our full-time guest enthusiasm
1. Hire the right people and train them well. were opportunities to demonstrate we cared coach (that’s not a joke title), labored two-
We showed everyone involved in hiring about our customers. We even deep-sixed and-a-half years to move it from 92.0 to
how to spot applicants who loved helping the word “complaint” and replaced it with 98.2. Personnel knew every smile counted
people and making their day. But that was “guest opportunity.” It’s said that the value of - their compensation was partially based on
only the beginning. Good employees also a person’s character is measured by how one a mix of store, district, region and company-
need training and inspiration. We enrolled deals with adversity. That’s also true of the wide GEI.
new hires in a weeklong orientation where, value of a company’s character. Employees at
among other things, I spelled out our mission every level need the authority to do whatever Tom Gegax served as chairman and
- “Deliver caring, world-class service to our it takes to satisfy unhappy customers. Just CEO of Tires Plus and is the founder of
guests, our community and to each other.” as a broken bone comes back even stronger, Gegax Management Systems. He can be
The focus of countless meetings, talks and we often scored more points by appeasing contacted at 866.210.2832 or by e-mail at
training sessions, as well as big chunks of an upset customer than if the issue had been tgegax@autosuccess.biz.
10

12. JimAdams
The Road to 20
Cars a Month, Every Month
Have you ever want to be. Get out a pen and paper. Write of something that we need to accomplish.
heard the phrase down: today, three months, six months, one A crystal clear vision of where we are and
“experience is the year, five years and 10 years. Our goals must where we want to be is one of the many keys
greatest teacher”? be divided into professional goals, family to success that we will explore in our goal-
This statement could goals and life goals. My personal goals setting process. Writing and reviewing these
not be further from include unit volume, grossing averages as goals will instill in us the drive that we must
the truth. Other people’s experiences are well as how many books I plan to read and have to accomplish great things.
the greatest teacher. Learning from other how much time I set aside to spend with my
people’s successes and failures is the key to family. Money goals are the vehicle we use to 2. Professional goals: The first thing
professional selling. plan for the goals that really matter: Life and professional sales people need to have is
family goals. If you are just earning money a clear understanding that sales follow
Andy Andrews said that General Norman for the sake of earning money, your life and opportunities everywhere they go. To sell
Schwarzkopf, commander of the Allied family goals will always go unfulfilled. Zig more cars we must talk to more people. We
forces in the Gulf War, had a system of Ziglar once said that when he died he would know that the average sales person closes
advancing across a mine field that worked leave as much money as Howard Hughes about 20 percent or one out of five of their
out pretty well for him. Walk toward the left: all of it. Just start writing. What do you total opportunity count. So let’s do the math.
explosions, because that is where the boys want? Start with stuff. That is the easiest. To sell 20 units a month we need to talk to
have already found the mines. Observing I want a new car, a bigger house, some (20 units X five opportunities) 100 customers
behavior is one of the many keys to success money in my savings account. I want a boat, per month. If we work five days a week we
in this business. I have been the seven-car a place at the lake and to take a vacation will have 22 selling days which means we
sales man and the 30-car sales man and I to the beach or to the mountains. Once need to talk to (100 customers divided by
have made my share of mistakes. However, you get started, it comes pretty easy. That 22 days) 4.5 customers per day. The average
over the past 15 years I have learned and is just stuff. Now dig a little deeper. How commission including bonuses and factory
developed professional business practices about spending 30 minutes a day reading to spiffs is around $300 per car, which will give
that if followed will help you become a your children or playing catch in the back us a monthly income at 20 units of $6,000
professional in automotive sales. It is said yard? Write it down. How about spending monthly or $72,000 annually. (See chart 1)
that 80 percent of the income in our business two Saturdays a month on a date with your
is made by the top 20 percent of the sales spouse or dedicating one hour a night sitting Once we discover how many monthly and
people. This leaves the bottom 80 percent of on the porch talking about anything but your daily opportunities we need we are one step
the sales people fighting for the 20 percent finances or the children’s activities? Write closer to achieving our unit goal. If our goal
of the income left over by the true sales it down. Tithing, community service or is 12 units a month, our focus is not on the
professionals. If you commit every day to visiting home-bound elderly adults can all 12 units it is on the 2.7 opportunities that
following the steps of professional selling be a part of your life and family goals. Many we need today and everyday to achieve the
you will be amazed at how fast you can of our goals take money. Most do not. I hope goal. Sales follow opportunities everywhere
achieve great success in automotive sales. you can see where I am going. If you write it they go.
down it becomes an objective that we must
1. Have a goal, a clear vision of where you look at on a daily basis and it is a reminder Now let’s focus on where our opportunities
come from. In our industry we have several
chart 1 sources of business. Fresh ups or walk-ins,
Unit Monthly Opportunity Daily Opportunity repeat owners or orphaned owners, new
Goal Count Count business or outside prospects, referrals,
be-backs and phone-ups or phone-ins.
Units x 5 opportunities Monthly opportunities divided by 22 working days
Here is the good news. The factories and
20 100 opportunities per month 4.5 opportunities per day your dealerships spend billions of dollars
units a year driving fresh up or walk-in traffic
19 95 4.3 to your dealership. The bad news is that at
18 90 4.1 best the average closing ratio on a fresh up
17 85 3.9 is about 10-12 percent. Which means your
16 80 3.6 chance to sell a fresh walk-in is about one
15 75 3.4 out of 10. Fresh up traffic is instrumental to
14 70 3.2 your success in this business as long as you
13 65 3.0 understand that it is not where the majority
of your opportunity should come from. Take
12 60 2.7
a look at the math. (See chart 2)
11 55 2.5
10 50 2.3
Now, where do you want your business to
12

13. continued
These are the questions you must answer
Source of Average Closing Results
in order to put the goal-setting process into
Business Ratio motion. In part two we will explore how
Fresh Up 10 Percent 1 out of 10 to build daily activities to cultivate each
source of business to ensure that we meet
Repeat Owner 50 Percent 1 out of 2 our monthly opportunity goal. Remember
unit sales follow opportunity everywhere
Referral 50 Percent 1 out of 2 they go.
New Business 30 Percent 3 out of 10
Be Back 67 Percent 7 out of 10 Jim Adams is the general manager at
Roper Kia in Joplin, MO. He can be
Phone Ups 20 Percent 2 out of 10 contacted at 800.905.0627, or by e-mail at
jadams@autosuccess.biz.
chart 2
come from? It is clear to see that repeat and
referral business are much more productive
DEALERS MUST BE
than fresh walk-in traffic. Here is the
bonus: Repeat owners are easier to close,
and commissions are generally higher. The
customer trusts you more and will allow you
ON TELEVISION!
to sell the value of the product. The more
value the customer receives, the higher price
he or she will pay.
As we set opportunity goals we must
predetermine on a monthly basis where our
opportunities will come from. Ask yourself
the following questions:
See why over 100 dealers nationwide have
• How many fresh ups per day do I INCREASED SALES MORE THAN 30% IN
average?
LESS THAN 90 DAYS WITH TELEVISION!
• How often do I contact my current
owner base?
We produce nearly 4,000 commercials
• Does my dealership have a list of a year from our studios. We give you
orphaned owners, and how can I get
my hands on it?
unlimited, high quality television campaigns
and promotions FREE. With computerized
• Do I ask everyone I come in contact
with for a referral? Do I know how to media buying technology, we buy television as
ask for a referral? much as 30%-40% more effectively than any
• What daily activities do I have in media buyer in the nation and give you
place to generate new business
contacts? Do I belong to any clubs or
UNLIMITED TV CAMPAIGNS
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• How often do I follow up unsold
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every fresh up that I serve on the lot?
Cell phones and e-mail addresses are
Larry John Wright, Inc.
the two most important pieces of
information you can get from your Automotive Advertising
customer.
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• Do I feel that I do a great job with
1-800-821-5068
incoming phone contacts? Am I
relaxed, helpful and informative? Do
I get the customer’s information and
invite every phone up to the store or
get the vehicle to the customer?
august 2005
13

14. DavidKain
E-mail Best Practices:
Create an Effective Auto Response
Each week I mystery team as professional and talented. This a business card then you realize it should
shop dealership Web conveys to the customer that the Internet have your logo at the top. This identifies
sites to see how they is a key connection to the dealership and immediately who it is from and starts the
“greet” me online the most visible person in the organization brand-building process.
with their auto wants to personally say hello. A well-crafted
response e-mail. The message from the Internet manager/director Step 4 – Keep it brief
auto response provides the first impression or specialist works well too and helps to Tell the customer as quickly as possible what
and is an effective way for me to determine quickly establish them as the point person. you want to tell them and don’t waste their
if they operate a productive Internet time. Graphics and bullet points work well
department. As sales people we are all taught and hold the customer’s attention better.
the steps to the sale during our first days of
training and the greatest emphasis is placed
Tell the customer Step 5 – Describe your process
on the initial greeting because it sets the as quickly as Some of the most effective auto responses
stage for the relationship.
possible what use a 1, 2, 3-type process description to let
the customer know it will be quick and easy.
Unfortunately, most auto response e- you want to tell For example:
mails are not an effective greeting for the
dealership, and fail to arouse or motivate their
them and don’t 1. We are reviewing your request and
audience. Too often the e-mails are sent with waste their time. will contact you within one hour by
either too few or too many words and they
offer no guidance to the customer. A poor
Graphics and phone or e-mail
2. We will confirm your specifications
auto response is better than a slow personal bullet points work and schedule a time that is
response, even if the personal response is
enticing. Spend the time necessary to make
well and hold convenient for your test drive
3. During your test drive visit we
your first impression a great one. the customer’s will provide your price, trade and
What is an auto response supposed to
attention better. financing information right up front
so you can decide if you want to
accomplish? purchase the vehicle
An auto response lets the customer know Step 2 – Use a subject line that is relevant
what they can expect when they work with to the customer Step 6 – Provide a link to your Web site
your Internet department. In most cases, People can receive a lot of mail from people A link to your Web site is a great way to build
customers have submitted leads through and companies they are not familiar. Normally brand and to establish your dealership as a
third parties and have already received a we screen the e-mail address and the subject great resource for your customer. A simple
standard reply of some sort from that source. line to see if they are safe and worthwhile to mention such as: “You can visit our Web site
As a result, your auto response greeting open. Since the lead you received typically at www.kainautomotive.com 24/7 to review
should acknowledge that your dealership comes from an aggregator of some sort that our updated inventory and specials.”
will be handling the transaction. If your auto may be providing you the customer from
response is just a brief note with no benefit one of the lead sources they work with. Step 7 – Sign it with complete contact
to the consumer then they may also regard As a result, the customer may be surprised information
follow-up responses much the same and not to know a dealer will be sending them an You have the customer’s attention at this
even open them. Don’t miss the opportunity e-mail with their dealership name in the point so make sure they know who they
to hit the ground running with an effective subject line. If the customer is not expecting are working with by signing it with your
auto response welcome that causes the to see an e-mail from your dealership they complete contact information. If the dealer
customer to want to open your follow-up may not even open the e-mail so it is best or GM is the sender make sure you include
e-mails. to make it relevant to the consumer with a who the customer will be working with and
generic subject line that says something like endorse their expertise. Consider providing
Step 1 – Decide who you want to sign the “Response to your online vehicle inquiry” or a link with a map to the dealership for the
auto response “Information regarding your Internet vehicle customer’s convenience.
The auto response is designed to get the request.” The customer will realize they
customer’s attention and welcome them to asked for information on a vehicle online so
your dealership Internet process. If the dealer the subject line is relevant and they are more
or the general manager is a well-known likely to open the e-mail. David Kain is the automotive Internet
training specialist at Kain Automotive Inc.
spokesperson for the dealership, it is a good He can be contacted at 800.385.0095, or
idea for the initial welcome to be from him Step 3 – Use your logo by e-mail at dkain@autosuccess.biz, or
or her with a line endorsing your Internet If you think of your e-mail like a letter or visit www.kainautomotive.com.
14

15. “Let’s make financing magic together.”
We’d love to meet with you to discuss how we can
help provide the best financing to your customers.
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Drop your local commercial DRM a line or call
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Jeep® is a registered trademark of DaimlerChrysler Corporation.

16. KirkManzo
... With Time to Spare
Managers may feel as If you can only complete a limited number need to be put on the schedule first. All other
though they need 27 of tasks, at the end of the day what is most tasks (small rocks) then work around the
hours to accomplish important? Sell cars; everything else pales in daily events (large rocks).
all the tasks placed comparison.
on them by the The weekly strategy is similar. If you know
dealership. The idea of This may seem obvious on the surface but the deadline for payroll is Tuesday at noon,
multitasking is no longer a luxury, but rather look at how you spend your time each day. block out an hour on Tuesday morning to
a necessity or is it? You order cars from the factory, follow up calculate commissions for your sales team,
with sales people on factory certifications to and have another manager cover the desk
Too often a manager spends his or her time qualify for their incentives, chase stips, deal and floor from 9-10 am every Tuesday. If the
reacting to everyone else’s requests instead with heat cases on the service drive, etc. cut off for the newspaper ad is Thursday at
of training people on when and how to 11a.m. and it takes 2-1/2 hours to set up your
schedule time with them. In order to help your dealer understand ads, schedule 90 minutes on Weds from 1- 2:
exactly what it is that you do, and help you 30 p.m. and Thursday 9-10a.m. to meet the
There is one thing we all have in common. get clarity as well, do the following. Each weekly deadline. Stay consistent. Schedule
Each of us is provided with exactly the manager should make a list of ALL the tasks repetitive tasks so others can learn when you
same resources without regard for who you that you are responsible for handling (as you are and are not available to answer questions
are or where you work. We are all provided understand it). or help out.
with the same size bucket to begin each day.
As the day begins, your bucket is empty The results of the exercise will often reveal Follow the same routine for monthly tasks:
and throughout the day it fills up until the obvious overlaps, two people addressing the Schedule monthly sales people reviews
bucket is completely full allowing nothing same tasks. This is counter-productive. For for the first week of the month. Allow 30
else to fit. example, assign one person to handle dealer minutes per person, if you have more than 10
locates (hint: a sales person can be assigned sales people, split the group over two days.
Now you could chose to allow other people this task to free up managers for higher People need to know you are serious about
to fill your bucket with things that may seem value tasks). maintaining a schedule of reviews every
important to them but are really not on the month, so pre-appoint for next month and let
top of your priority list. Or you could first fill Areas that should be receiving attention, like the sales person know exactly what day next
your bucket with those things that are most recruiting, are often not specifically assigned month and what time they will be meeting
important to your success today. The bucket to any one person, yet it is the life blood for with you again.
represents time. Its limit of capacity is the 24 continually upgrading your sales staff. Who
hours we each have to work with daily. handles the daily one-on-one’s, the daily A scheduling template is the best way to
training? Many of these large rocks (tasks) help you fill your bucket with the large rocks
The bucket can become so full of little get pushed aside because too many small first allowing you to complete the repetitive
meaningless tasks that get you no closer to rocks (tasks) get into your bucket and at the tasks required to run the dealership and
your goals. The first thing you must do is end of the day … well you just ran out of create ample time to accomplish the most
place the large rocks (important tasks) into room and time. important task, sell cars every day!
the bucket, then place in the smaller rocks
as room allows. If some of the smaller rocks Break your tasks list into three categories, Believe.
(tasks) won’t fit into today’s bucket, they daily, weekly, monthly.
will then need to go into tomorrow’s.
Daily events include save-a-deal meetings,
The first step toward taking control of your one-on-one’s with sales people, assisting Kirk Manzo is the general manager
schedule, your job and your life is to accept F&I with CIT issues, reconciling with the at Ziegler Supersystems. He can be
the reality that you will never finish ALL back office to make sure we are getting paid contacted at 800.858.6903, or by e-mail at
the tasks you want or need to do every day. for what we already sold, etc. These events kmanzo@autosuccess.biz.
SUMMITIII
November 3 & 4, 2005
MGM Grand BEST PRACTICES
Las Vegas, Nevada
Dealers & Managers Only
See page 3 for more details
16

18. MichaelYork
If Your Business Closed Today,
Would Anyone Really Notice or Care
There’s just no place Not everyone has 2.7 billion to throw at that range from slow to terrible, the facts say
like Las Vegas. Seems a giant hotel/casino/golf resort … or at a otherwise.
no matter how many dealership in Chattanooga, but everyone has
times you’ve been ways of making the customer feel special for If there’s nothing very special about your
there; there is still an doing business here. work or the value or service you provide
excitement or anticipation when you make then you’re lumped in with all the other
that next trip. Flying into that oasis that still Here’s the formula: roadside “motels” of the world in the eyes
looks like a mirage in the desert is great. Whatever you sell is boring. And whatever of the customer. And if another one of them
I sell is boring. Unless you or I make it goes out of business today, would we really
When you see the strip and all those giant remarkable in the eyes of the customer. notice?
hotels and casinos, isn’t the first thing that Unless the emotional experience they’re
pops into your mind something like “What getting makes the money they spend less But what if Starbucks or Harley Davidson
Las Vegas really needs is another giant important than the experience or the story or Disney World or Las Vegas closed
casino?” they can’t wait to tell about you and how tomorrow? Would anyone notice?
you did it.
No? Well that’s exactly what Steve Wynn You bet. And that’s the very reason it won’t
was thinking. And his vision is now a reality happen anytime soon. Because people notice
among all those other big name, big dollar
properties.
Here’s the and love spending their money there. What
makes you special or cool or valuable or
formula: remarkable in the eyes of the buyer? And
The slick, black, wrap-around look of The
Wynn hotel, casino, shopping mall and golf
Whatever you sell if you can’t answer, that’s a great place to
begin your radical improvement.
resort is the new color in the Vegas rainbow. is boring. And
And even that doesn’t do justice describing
it. It’s almost beyond description. whatever I sell If all you’re doing is selling cars it can be
all about price. But the feeling I get driving
is boring. Unless around Las Vegas in my convertible with the
You have to see it to believe it, and even then
it’s enough to stretch your belief system. you or I make it top down and the sun winking at me from all
those big shiny buildings doesn’t leave much
Every big name boutique you’d hope to find remarkable room in my imagination to remember how
in the eyes of the
from Rodeo Drive to Fifth Avenue has a much I paid to be here. Even if I can recall
spot on the Wynn walk of famous shopping. the number, it’s a small price to pay for this
People stand and gawk at a giant wall of water
in the gardens, and what it costs to furnish all
customer. “emotional experience” that I couldn’t wait
to tell someone about. And now I have.
the fresh flowers inside the hotel would be
enough to build most three bedroom houses. Las Vegas knows the secret to this “NOW” The reason the rich keep getting richer, as
economy. So does Steve Wynn. So do they say, is because the rich keep doing the
It’s HUGE with a capital HU! Starbucks and Harley Davidson. So do things that win in any economy, and the poor
(Hint: There’s a Ferrari dealership inside it.) Oprah and Jimmy Buffet. So did Elvis. (read: ordinary or average) keep doing the
Do you? not-so-special things that nobody’s really
So why another casino in Las Vegas? It’s noticing. How excited are your customers
obviously not just another casino or hotel. Are you creating an amazing experience about what you do and how you do it? Want
It’s an emotional experience that people for the prospective buyer who is almost some better questions on how to improve
come to see and feel and tell others about. always first a prospective looker? Are people your “show”?
If you’re coming here you can save big walking around talking about coming back
money by staying at an older giant hotel or here to be a buyer? No one at The Wynn If you want my short list on “Wynning”
some chain we’ve all heard. The rooms are is trying to stop the “lookers” from leaving in this “NOW” economy, visit
clean, OK, good price, practical, etc. Sound without checking in today! Are you still www.MichaelYork.com/autosuccess.
familiar? Low mileage, solid transportation, worried about selling your “lookers” today
good price. instead of creating such an attractive “show”
that they can’t wait to be back … and buy!
Where’s the emotional experience at your Michael York is an author and professional
speaker. He can be contacted at
place for the consumer? Are they excited This is the most sophisticated marketplace 800.668.5015, or by e-mail at
about becoming a customer? What will they we’ve ever known. And while rumors and myork@autosuccess.biz, or visit
say about you when they tell their story? excuses lament today’s economy with labels www.MichaelYork.com.
18

19. august 2005
19

20. fs feature solution
BenElliott
The Real Deal
Pre-approval Sale
Direct mail has been around for some General’s office a few weeks later about the Under the new laws, with no firm offer
time and remains one of the best ways to validity of the pre-approval offer turns a bad of credit, pre-approval sales have created
fill showrooms with people. At first, mail sale into a potential nightmare. problems for dealers around the country.
piece recipients were chosen by zip code or Fortunately, there are now programs
distance from the dealership. Through the In reaction to these issues, pre-approval sales available though partnerships between
years the selection process has become more are changing. Compiling the list of people direct mail companies and lenders that can
precise. Dealerships now select recipients who are to receive a pre-approval mail piece truly grant legitimate pre-approvals. Every
based on income level, lease termination is now done differently. Customers are still customer that receives a pre-approval letter
date, college graduation, bankruptcy, home selected based upon their credit, but now is approved. By utilizing a pre-approval sale
ownership, and most important, credit. Credit more care is taken to make sure that all program that truly guarantees the approvals,
allows a dealership to only send mail pieces required credit criteria for approval are met. dealers can not only eliminate headaches, but
to customers that fit the financing programs In bold print the mail pieces now clearly sell far more vehicles to far more people.
available to the dealership. Moreover, mail state income requirements that may affect
Finally a real pre-
pieces can be designed with offers that the pre-approval.
appeal to the selected demographic. The
offers made in mail pieces have become approval sale where
more and more aggressive attempting to Over the past 30 they really buy
convince customers to visit dealerships. years of running the paper! Until
Pre-approval sales have grown in popularity
some of the largest now, nobody has
over the last several years. Dealers have GM and Ford guaranteed to fund
blanketed their markets with mail pieces operations in the every contract that
bearing messages like, “Bad Credit, country and as a walks through the
Divorce, No Credit, No Problem. You are
PRE-APPROVED at Somewhere Motors.”
dealer myself, I door with a pre-
These messages are extremely appealing to have used every approval mail piece.
the credit-challenged, and many respond. direct mail company
- Robert Register, Tony Moore
Unfortunately, a high percentage of these in the nation … if I Automotive in Huntsville, AL.
haven’t used them
people who were lead to believe that they
were pre-approved are no longer approved
when they reach the dealership. This is I have at least been A second benefit of a real pre-approval
counterproductive for everyone involved. pitched by them, sale is the additional sales and gross profit.
The customer is upset because he/she wasted
and I have Þnally Consider a 5,000 piece pre-approval sale
$10 in gas and his day off to visit your store. without a firm offer of credit. If 2 percent
The sales person is upset because him/her found a real pre- of the people who receive the mail piece
customer couldn’t get approved. And you, approval sale with visit the dealership, there will 100 ups.
the dealer, just had 100 people in the store 300up Promotions. Unfortunately, only half will qualify, so
from a 5,000-piece campaign and less than even with a 25 percent closing ratio on the
half even qualified to buy a car. This is not - Earl Hudson, Earl Hudson Buick 50 qualified ups there will only be 12 sales.
where it ends. A phone call from the Attorney Pontiac GMC in Shelbyville, TN. Now consider the same 5,000 piece pre-
20

21. approval sale with all 5,000 pieces going to
people who qualify. With the same 2 percent
return and the same 100 ups, the results are
doubled. Now all 100 ups are guaranteed to
qualify, so closing 25 percent will now result
in 25 sales. Using an average gross of $2500
per copy, the guaranteed pre-approval sale
will gross $62,500. That is an additional
$32,500 over the pre-approval sale without 5000 Piece Mailer
the guarantee. Traditional Method
When choosing a Ups
company to partner
100
with for direct mail, Ups that
the three most import Qualify 50
things to consider are.
1. The validity and Sales at 25%
legality of the offer; it Close 12
is important to have a 0 10 20 30 40 50 60 70 80 90 100
real deal pre-approval
sale.
2. Customer service
is king. A partner in
direct-mail marketing Improved Method
must be able to
respond quickly and Ups
100
effectively.
3. The price is also Ups that
important. The better Qualify 100
the price, the greater
return on investment. Sales at 25%
Close 25
- Keith Sheldon, GM Courtesy
0 10 20 30 40 50 60 70 80 90 100
Chevrolet Sonic Automotive
Group in Atlanta, GA.
By partnering with a direct mail company
that can guarantee the approval of every
customer that walks into your dealership Gross ProÞt
holding a mail piece, your dealership can
avoid the problems created by the new laws Traditional
governing pre-approval sales, sell more cars Method $30,000
and improve ROI at the same time.
Improved
Ben Elliott is the president and CEO of
Method $62,500
300 Up Promotions. He can be contacted
at 866.319.7337, or by e-mail at 0 10 20 30 40 50 60 70 80 90 100
belliott@autosuccess.biz. Thousands of Dollars
august 2005
21

22. TonyDupaquier
And You Are ...
If a customer comes unable to read any coded information.
into a store and buys It is the responsibility of the dealership to
a vehicle with a At the same time, the customer’s information conduct its own identity theft prevention.
stolen identity, who is is instantly run through the most current Banks and lenders are not responsible for
at fault? The person Specialty Designated National’s (SDN) list, ensuring the identity of a customer and do
perpetrating the crime which is required of all U.S. businesses to not perform any background checks because
is at fault – there is no doubt about that. ensure they do not conduct business with the majority of banks allow their computer
However, the bigger question becomes, who anyone on the registry. systems to approve loans based on an
is responsible for the loan? The dealership. algorithm, not human verification.
As part of the process, it is recommended to
If this situation has not yet happened to you, swipe the customer’s license prior to the test High-tech methods are not the only way to
be prepared to send a lender a check or two drive. If no information is found on the back deal with today’s fraudulent customers and
when it does. No section of the country or of the card, a dealership may not want this employees. By installing a few policies,
type of franchise is immune to this rampantly person to test drive a vehicle for the sake of a dealership can reduce its risk; however,
growing problem. the sales person’s security. someone must inspect these polices on a
continuing basis.
On TV, seemingly every week, the news
reports on corporations losing customers’ High-tech For starters, become very familiar with the
personal information or thieves hacking into
computer systems. In June, a sales person methods are not driver’s licenses and identification cards
issued in your state. Many states have a
at a dealership in Texas was arrested for the only way to guide that you can get from the Department
switching the identities of customers who
had bad credit with the identities of people deal with today’s of Transportation that will help identify false
cards. Always have a copy of a customer’s
who had good credit, and the customers were fraudulent driver’s license in your permanent files for
100 percent unaware of the situation.
customers and further reference. A copy of the customer’s
Social Security card or other identification
You and your dealership must take action employees. that displays this number should be in every
By installing a
now. deal jacket.
There are several avenues a dealership few policies, a Require proof of income. This may be the
dealership can
can take to prevent identity fraud. It is lowest-tech method of checking identity
important to note, though, that once a available. In many identity-theft cases,
program is installed, it becomes everyone’s
responsibility in the dealership to ensure
reduce its risk; the thief used people with good credit that
would ensure an “instant approval” from
compliance. most lenders. When a sales manager or
Once the customer has agreed to purchase business manager sees that a credit score
The easiest way to ensure a customer’s a vehicle, the business manager or sales is high enough for approval, it becomes an
identity is to use an online service that manager will look up the customer and instant contract. If a lender does not require
electronically verifies personal information. insert his or her Social Security number proof of income, most business managers
One such service is Valid Auto, which is by into the system. Once this is done, the will not ask for it. It is time for this practice
far the most advanced product in the industry. information is verified on many levels. The to change in response to the identity theft
The company started in the banking industry program starts by verifying the customer’s problem. Even if a thief does have a Social
and in the past year expanded to meet the name, surnames, middle and maiden names. Security number and an ID to back up the
needs of the automotive market. It also goes though an extensive background name being used, what other documentation
check of the customer’s current and previous do they have available? Chances are, a thief
What makes this program so effective addresses, and it determines if the birth cannot offer up a paycheck stub to verify the
in the prevention of fraud is the way the date entered matches other data systems income he or she is claiming on the customer
information is entered into the system and with similar information. Furthermore, the statement.
the measures it goes through to ensure program checks to see if the person is using
a person’s identity. Using a scanner and a Social Security number from a person who Dealerships have the ability to cover their
an online connection, the system reads is deceased – a common ploy among identity assets with simple polices enforced by
the magnetic strip on a driver’s license to thieves. everyone.
pull a customer’s information – and even
employees’ information, as well. Should a If all checks out, the system gives a clear Tony Dupaquier is the director of
F&I training for American Financial &
person attempt to present anything other than status on the customer. If a red X appears, Automotive Services Inc. He can be
an authentic identification card, a red flag further investigation is required before contacted at 866.856.6754, or by e-mail at
will be raised instantly when the computer is contracting this customer. tdupaquier@autosuccess.biz.
22