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1. United We Stand
.biz
June 2003
Mark Strong
Introducing the First
Customer Management System
People Still Love to Negotiate
A Successful Automotive
Professional: The Daily Schedule
Emulating Success
How to Become a
Successful Negotiator

3. manager
INSIDE
driventeam operation
uccessrevenue automobil
4 People Still Love to Negotiate
solutions
Mark Tewart
6 How to Become a Successful Negotiator Joe Verde
8 A Successful Automotive Professional: The Daily Schedule
profitprofessional
Kim Langham
9 Dealership’s Image: Its Effects on Recruiting Terry L. Isaac
10 Choosing the Right Showroom
sales
Traffic and CRM Solution Robert C. Gruen
12 How to Clone Your Best People Pam Holloway
14 Emulating Success Timothy Gilbert
15 What You Need in the Detail Department Kevin Farrell
16 Introducing the First Customer Management System Mark Strong
18 Tool Reimbursement Programs:
They Can Help Your Dealership Thomas Lower II
20 Double & Triple Your Output Using Your Time Wisely Brian Tracy
21 Sales From the Internet:
Why Doesn’t My Website Work, Part 3 Dennis McDonough
22 Call to Action: Create Customer Demand Joe Courrege
24 Best Practice #3 & #4: Knowledge is Power Jay Betz
25 Experienced or Inexperienced - That is the Question Glen Crawford
If You Need Service Solutions, Ask a Pro Don Reed
26 Prepaid Maintenance Contracts: Build Loyalty,
Customer Satisfaction and Profitability Dan McNellis
27 Presentation is Everything David Thomas
28 Overcoming Objections Tom Joseph
30 What a Manager Does Fran Taylor
inventory
Patrick Luck, Publisher
Success Driven Solutions
• pat@autosuccess.biz
Susan Goodman, VP of Operations
• susan@autosuccess.biz
Knight Miller, VP of Marketing
• knight@autosuccess.biz
756 South 1st Street, Suite 202 Lindsay Porter, Copy Editor
Louisville, Kentucky 40202 • lindsay@autosuccess.biz
Amy Stuber, Advertising Services Mgr.
• amy@autosuccess.biz
Toll Free: 877.818.6620 Amelia Ellenstien, Advertising Services
Facsimile: 502.588.3170 • amelia@autosuccess.biz
dealer
God Bless America Web: autosuccess.biz Thomas Williams, Creative Director
• thomas@autosuccess.biz
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4. sales and training solution
Mark Tewart By Mark Tewart
People Still Love to Negotiate
Many times people the ‘higher authority principle’ of process can eliminate different managers
say they don’t negotiating. In other words, they dislike from working proposals in completely
like to negotiate; an improperly used desk system. You different directions that confuse sales
yet, they still shop can still use a desk system, but you can people. Sales people should know how
around and never decrease the back and forth, and keep the to handle any and all objections, verbally
pay full MSRP. customer from feeling manipulated. and written, without having to think or
Most people act in their own best interest. blink.
And most people who say they don’t like The first step is to have a written process
negotiating, actually still want to. that everyone understands. The second Sales people often give a proposal and
step is to make the process the same for when a customer objects, their first reply
There are three things you should always each manager and each deal every time. is, “Mr. Customer, what figures where
listen to in this business: The third step is to train your sales people you thinking?” Unfortunately, it may
how to negotiate, handle objections and be the worst thing that could be said
1. What people say. to a customer. Asking a customer what
2. What people are trying to say. assist the buyer to finalize a buying
decision. they are thinking without verifying and
3. What they really mean. validating why you asked for what you
Often, what people are saying is they A written, detailed negotiating process that proposed, will bring an uneasy feeling
‘hate’ to negotiate. What people are all sales people and managers understand to the buyer and usually result in one of
trying to say is they could do without the is essential. Many dealerships seem to two answers, both of which aren’t good.
way auto dealers negotiate and what they operate by the seat of their pants when The buyer will usually respond with a
really mean is they don’t want to make a dealing with the negotiating process. All low-ball offer or say, “You’re the sales
mistake. proposals should be started in the same person, you tell me.” In this example, a
fashion. Although each deal can vary sales person has violated simple rules of
When people say they don’t like to differently as you begin to negotiate, they negotiating by asking the customer to set
negotiate, they are trying to say they should all start the same way to eliminate the bottom parameter of the negotiations.
don’t like the feelings of manipulation emotional, bad decisions. Having a This usually will create a shopper from
that occur when auto dealers overuse precise, written and clearly understood a potential buyer, because they can no
longer have confidence that they have
reached their best and lowest possible
deal. Confidence creates the feeling
PROFIT...FROM
of ‘hope for gain’ and eliminates the
emotional fear of making a mistake.
YOUR When a customer asks for a lower price,
the sales person must validate the MSRP
ARCHITECTURE by explaining the value pricing policy.
“Mr. Customer, the vehicles are value
priced today, which means they have
Over 300 new and renovated a much smaller and more reasonable
dealerships designed across markup than in the past, to eliminate the
USA and Canada back and forth and bring a more realistic
pricing value to the customer.” If the
On-site Facility Design customer persists for discounts, you
Surveying can offer the potential of an additional
Feasibility Studies percentage discount on the optional
Inclusive Design Meetings with equipment of the vehicle. This validates
management team your MSRP proposal and allows the
customer to have feelings of victory by
Increased CSI scores and profit gaining a concession while establishing
per transaction the bottom parameter of negotiations.
Consulting to local
architects and All customers are looking to satisfy
certain emotions. Knowing how to
contractors professionally negotiate can satisfy
Design - Build all the emotions a customer desires
Services and eliminate the negative feelings of
a praxis3 company
manipulation that are prevalent when
many customers leave a dealership after
800.795.1555 a negotiating process.
jmargaretten@praxis3.com
miguel@praxis3.com Mark Tewart is the President of Tewart
Enterprises. He can be contacted
at 888.283.9278, or by email at
info@tewart.com.
4 autosuccess.biz

5. Profitcenter – ™
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• Simultaneous A-B Pencils • Instantaneous Deal Structuring
• Used Vehicle Auction Values • On-the-fly Reports Designer
• Complete Lead Management • Instant Up Cards
• Workflow Designer • Customer Follow Up
No Other System Can Do It!
Only From
(800) MKT-SCAN x2012
31416 Agoura Road • Suite 110 • Westlake Village, CA 91361

6. sales and training solution
Joe Verde By Joe Verde
How To Become
A Successful Negotiator
Negotiation is part a solid case in every area of selling (the qualify your customers once you have
of the entire selling ‘Basics’) and when you get to the final them committed to owning the vehicle.
process … it is not steps regarding price, payments, etc., you Your only job in sales is to ‘investigate’ to
just the final step. really need to have developed a strong find their driving wants and needs so you
case as to why accepting your offer can make a value building presentation.
First, you need to understand that (price/terms) would benefit them more
negotiation is a process, not a step. One than you. In case you weren’t aware, you’ve begun
big problem with negotiation (last step) your negotiation when you ask or say...
is that almost every dealership does this That’s why Ben Franklin, America’s first • How much did you want to spend?
step differently than the dealership next self-made millionaire, said that to be • What’s your budget?
door or across town. successful in a negotiation, you have to • What kind of payments do you
cover what you’re offering (the feature) want?
Negotiation has been around since and give the other party the advantages • We can save you hundreds...
the Stone Age and has always been a and benefits of doing things your way and • What do you want for your trade?
part of the buying and selling process. that you have to create a win/win for both • How much can you put down?
Some people wouldn’t agree with that your dealership and the customer. • We’re asking...or...we’re dealing.
statement today, though, if they’re in a • The price is negotiable on this...
one-price dealership that really doesn’t Some common mistakes sales people and • Don’t worry, we never missed a
think they negotiate anything. managers make in negotiating. deal because of price.
Since ‘negotiate’ means ‘to come to terms’ Problem: My manager just said find a buyer, and
… that means it applies to everything in You start negotiating too soon. we’ll make you a deal you can’t refuse.
the selling process, not just the price. Price negotiation begins as soon as the
The negotiation can be about price or first dollar figure hits the conversation. So, Worse yet, the person who sets the
the payments or what you’re paying for answer this, should you start negotiating first figures has the advantage in the
their trade, and it’s certainly about value. price, trades, rates, payments, terms… negotiation. That’s why you can’t ask,
Other things that are negotiated: price vs. “What do you want to spend?” They give
value … value to me vs. my payment … before you build the value in you a figure that’s unrealistically low
value of my trade vs. what I thought it owning the product – or – (advantage to the customer), and now
was worth … value of buying from this after you build the value of you’re on the defensive.
dealership today … value of buying from owning the product, from you / your
you instead of the sales person down the dealership? The solution: Learn how
street, and much more. to bypass price and build value Þrst.
You should wait until after the value is You can’t build value and talk price at
In fact, almost every part of the sales established to talk about anything that has the same time. And to avoid price, so you
process is a minor negotiation within to do with money. But talking price first can work on value, you have to learn to
itself. Even the first two minutes you’re is what almost every sales person does on bypass all price conversations so you can
with a customer is a negotiation, because the lot before any value is established, spend your time focusing on the features,
you’re trying to come to terms on you simply because the customer asked about advantages and benefits to the customer.
being the sales person they want to deal the price. Sales people don’t know how to Once you learn how, bypassing all price
with on this $25,000 purchase. To do that, respond to price questions and objections questions is so simple, so effective and
you have to get them to like you, trust you to effectively bypass them, and that means so accepted by the customer, you won’t
and feel comfortable working with you, the negotiation has begun too soon…and believe you wasted all those years and all
and that’s what the first two steps of that means you lose sales more often that those lost sales trying to sell ‘price’ first.
selling are designed to accomplish … if you make them. Your current score: win
you do it right. On the other hand, if you one or two, lose six or seven. Problem: Sales people don’t listen.
dress like the clerk in a hardware store, Your customers will and, in fact, do tell
casually swagger towards the prospect Negotiating before the value is established you everything you need to know to not
with your hands in your pockets, your is a straight road to no sale. That’s why only sell them the vehicle, but to also
sunglasses on and pop a greeting like, of the eight out of ten customers who negotiate a successful settlement for you
“Can I help you?”… you’ve just lost this specifically came to buy and will buy and for them – if you’d just listen.
step of the negotiation, because you did … the average sales person ends up with
not come to the terms required in creating only one or two sales at the most of those We talk about investigating before you
an effective first impression that is critical eight deliveries they could have had. make a presentation so you know what
to your sale. to cover in your presentation. But that’s
What are the errors? One is confusing just part of the reason you continually
Successful negotiators have learned that ‘qualifying’ with ‘investigating’. Your investigate. The other reason is because
to negotiate and win, you have to present sales and finance managers and the banks
continued on page 29
6 autosuccess.biz

8. sales and training solution
Kim Langham By Kim Langham
A Successful Automotive
Professional: The Daily Schedule
Kim Langham is a wish list in my planner. I also track I know exactly what I am going to do
the top sales person how many cars that I have sold and how when I get there, and I am constantly
at Jim Schmidt much money I have made; this keeps me doing proactive things.
Chevrolet. She was focused; I know where I am and where
#1 in volume sales I need to be at the end of each month. When you are a sales person, it is
in the Toledo zone Then, if there is a slow time, I look back obvious that things will change during
last year. Kim averages 30 cars a month at my old planners; I might see a name the course of your day. A problem
and has a CSI rating of 3.92. She works that relates to a sale or rebate we have, may arise that needs to be addressed
mainly on referrals and repeats alone and and that gives me an idea for a sale. Many immediately; you may have a walk-
only takes one or two (at most) fresh ups times, this results in sales that I would in, etc. However, it is still extremely
a month. She has been in the business for have never even thought of. If I didn’t important to have a plan for your day.
12 years, and said that it only takes about use my daily planner, I guarantee that I The first thing that I do when I get to
four years and hard work to become wouldn’t sell half as many cars as I do. I work is check my phone messages
established. Kim is an outstanding sales go through my planner all of the time. and my delivery schedule. I then go to
person with the knowledge it takes to cleanup and check to make sure there
become successful. The first four or five years of my career are no problems and that everything is
I worked 60 to 65 hours a week, bell to ready for delivery. I gas my cars (if they
In the grand scheme of being a successful bell. Now, I get to work around 9:15 need it) and get them completely ready.
automotive professional, organization and work about 50 hours per week. I get After that, I go with the flow. If I have
is everything. I have a daily planner, up early in the morning work out and down time, I’m sending thank you and
which is a must for all professional take care of my personal business. This birthday cards, I’m making phone calls,
sales people. I write down all my phone way when I get to work, I have nothing and I’m looking through my planner to
calls, appointments, prospects and keep to do or worry about other than work. see if there is anyone that I can sell a
car to. I go to work to work. I am not
going to waste my time and not make
any money. Sitting and talking with co-
workers is not an option. It looks bad
and doesn’t help your sales. If you want
to sit with a customer and talk that isn’t
a problem, it is proactive and could help
in having repeats and referrals.
I handle my customers as they come in
during the day. If there are four of them
Pick Your Zips! in at a time, I work them all. I never let
anyone sit. There will be days that you
don’t sit down for six hours or more,
but that is how you sell cars. One of
the most important things to remember
Custom catalogs
12 ¢ about your customers is, they are, truly,
to advertise always right. Even if my customer seems
to be saying something off the wall or
your dealership incorrect, if it is an issue for them, then it
Get every household in your is an issue for me. Again, this is another
market area and put it in the way to create a customer for life.
mailbox for 12 cents or less!!
If you work hard, don’t waste time
$
11,900
100,000 and treat your customer’s right, you
8-page catalogs
designed, composed, printed
will increase your sales dramatically.
and distributed via US Mail Having a daily planner is imperative,
gets you: (or newspaper inserts*)
Completely Turn Key
like I said, if I didn’t use mine, my sales
wouldn’t be nearly what they are. Every
8-page catalogs are equal to the image area of 2 full pages of display advertising.
Great way to advertise your seasonal events! Promote that big tent sale!
professional sales person needs a plan.
Our 8-pager will hold over 100 photographs and car descriptions Remember, all of the truly successful
including price, lease, payments and all options!
Great for new cars and factory incentives - Fantastic for used inventory!!!
sales people are doing the same things.
Call 1-888-530-9196 Kim Langham is a Sales Associate at
Jim Schmidt Chevrolet. She can be
jmiller500@comcast.net
Specializing in Automotive Advertising Catalogs since 1991
contacted at 419.542.7731, or by email at
kim@jimschmidtchevy.com.
8 autosuccess.biz

9. sales and training solution
Terry L. Isaac By Terry L. Isaac
Dealership’s Image:
Its Effects on Recruiting
It is a known top talent. Recruits now want to make this profession. Have success stories of people
fact that some business their career. Ways to overcome who have achieved great success with
customers have the negative image new recruits have of the your dealership. Offer training (without
a negative image automotive industry will require change in offering paid training most people do not
of dealerships. the way you advertise for employees. The consider this business). Part of the negative
This could stem newspaper will only catch the eye of the image is that we don’t offer professional
from past buying experiences. We are average or less than average. Job fairs are training and that we’ll hire anybody out
continuously working on improving our a good way to sell the job to top recruits. there (which is true of a lot of dealerships
image with the customer. We do this Yes, sell them. It is a sales job. today). Send your top, most professional
by creating new showrooms with less person in your sales department, because
intimidating settings such as: changing When you sell a vehicle the sale only takes tens will attract tens, and twos will attract
manager towers to offices, opening floors place when you are face-to-face. During twos. If you take a two and train them, the
with tables instead of stall type offices, this time you sell yourself, the features and most you will have is a four. You need
even putting in fireplaces, all in the effort benefits, and why they should do business tens. Overcoming your image is a constant
to make the customer more comfortable. with your dealership. In the process, you challenge; you will have to endure as you
A comfortable customer is a workable have to overcome the negative image they move into the future. Your efforts will
customer. may have of you and your dealership. improve your image and your importance
There are a lot of similarities in recruiting to the automotive industry.
However, we also have to take into top talent; you have to sell them on
consideration the image we have with job yourself, show how much you love this Terry L. Isaac is the Corporate Sales
seekers. Remember, the customer we sell business and what a great opportunity Trainer for the Neil Huffman Auto
today, could also be the employee we try it is for them. At a job fair, make sure to Group. He can be contacted by email at
to recruit tomorrow. Most people in the show them the benefits of being in this trainerterry@bluegrass.net.
automotive business got into it because
they didn’t get the job they wanted or
are using it to ‘hold them over’ until
another opportunity opens up for them.
There are not too many people who grow
up telling their parents, “I want to be a STOP WASTING PROFITS!
If your dealership is not using a tool reimbursement program,
car sales person.” Of every class at our
dealership, at least 90 percent of them say then you are wasting proÞts and your employees are not
that someone has said something negative receiving as much take-home pay as they could be.
about the career that they have chosen.
There have been several surveys done on
this profession, with car sales people at the
bottom of the list of careers.
Sales people have to overcome the
negative image customers have of them,
it is no different with recruiting. Do you
ever wonder why your dealership is not
being considered by college graduates
or talented sales professionals? The Implementing an Accountable Plan will:
automotive industry offers some of the • Increase proÞts for the dealership
best paying jobs in the country, and yet is • Increase employee take-home pay
still not looked at as a good opportunity. • Increase employee retention and loyalty
When you look at how much the economy • No out of pocket costs
depends on the automotive industry to • Fees taken from savings created on the program
fuel economic growth, the fact is, as
the automotive industry goes, so goes The Pro-Check Accountable Plan
the economy. Think about it this way,
if you don’t move the vehicles out of
is a GUARANTEED win-win!
“Using the Pro-Check program will decrease company expenses and increase take-
the showrooms, the orders stop and the home pay. The Pro-Check program should be used by all companies that require
manufacturers slow down to a crawl. employees to bring their own tools and equipment to the job. As a CPA, I would
recommend the Pro-Check program to all of my clients.” - Mark Heinen, CPA
877.385.4227
It takes a well-skilled professional sales
force in today’s competitive market to
have a successful dealership. In order to
achieve this goal, you have to start with prochecknational.com
june 2003 9

10. crm solution
Robert C. Gruen By Robert C. Gruen
Choosing the Right Showroom
Traffic and CRM Solution
Who’s in the choose should be customized to work Results of
driver’s seat at with the successful processes and choosing the right system.
your dealership, business rules you have in place. Improved opportunities–Increases of
management, over 250 percent in logged, in-store
sales people, The system should incorporate your ups are not uncommon.
customers? While customized forms and worksheets,
on the surface it may appear that they which add to the professionalism and
would steer the dealership in different uniqueness of your store.
directions, their respective demands
can be met by implementing the right Customized lead follow-ups specific
showroom traffic, customer relationship to each prospect are essential. Few
and lead management system. prospects respond to generic e-mails
and letters.
The right system for your dealership
will prove to be a money-making tool Training and support.
for your sales people and the dealership. Your vendor should provide in-store
How do you find the system that startup and ongoing training. This Graph 1: Logged In-store Ups
will give you the management tools ongoing training will ensure your Improved lease retention and
necessary to manage your sales people staff’s continual use of the system. sales–Dealers have experienced lease
while allowing them to embrace the retention and sales volume increases
objective of your processes? How do Free product updates and of up to 30 percent. The chart below
you find a system that will not only enhancements should be included is an example of what happened
support your unique processes, but also as part of any software maintenance to a dealership after successfully
require accountability for compliance fee. implementing a showroom traffic and
with those processes? CRM solution in their store. They
The vendor should offer technical became the largest growth dealership
In the fast-paced, ever-changing support 24 hours a day, 7 days a in their area during 2001 by retaining
automobile marketplace, dealers need week. There will come a weekend or more prospects and lease customers.
to capture every sales opportunity. evening when everything will appear
They need a system that embraces their to go wrong. Give yourself peace of
unique sales processes and requires mind knowing that support is always
accountability from managers and sales available. Note Increased Sales
Volume after CRM
people to help keep customers coming Installation
back. Avoid the mistakes of others and Integration.
consider the points in the following The system should integrate and
checklist when shopping for the right function with other solution providers
showroom traffic, customer relationship currently in your dealership.
and lead management system for your
dealership: The system should use your
existing PCs and networks—adding
Employee buy-in. proprietary hardware is inefficient. Graph 2: Sales Volume Growth
Involve management and sales Improved CSI (Customer Satisfaction
people in the shopping process Clarity and accountability. Index)–Tracking sales associates’ and
from the onset. Give them a sense Reports and functions should allow managers’ follow-ups through the phone
of ownership in a system they will your management staff to quickly system has shown a two-fold increase
be using to help run the store and identify areas of weakness so that in CSI. If you can validate that calls are
generate more sales. they can be rectified in real time. actually being made, you can guarantee
You cannot manage what you cannot improvement in CSI.
A user-friendly interface and measure.
maintenance-free operation is Carefully consider the points in the
essential. Your sales people should The system should track all in- above checklist before choosing a
not need computer experience to store e-mail, phone-up and follow- showroom traffic, customer relationship
effectively use the system. up activities on one customer and lead management system. Doing
screen. A real-time desk log with this will help ensure that you achieve
Customization. desking functionality is a must for accountability for your entire sales,
Consider the current successful managers. prospecting, trade-cycle and owner
processes you have in place at your follow-up processes. This, in turn, will
store. Whatever is working well Reliability. guarantee that you sell more cars.
needs to be integrated seamlessly Check a vendor’s references—talk
into your new automated system. to dealers and staff in management Robert C. Gruen is the President & CEO
Whatever’s not working needs to be and sales. Don’t simply use a few of The Higher Gear Group, Inc. He
reviewed and discussed with your select references. Request a complete can be contacted at 847.843.6800, or by
potential vendor. The system you customer list. email at rgruen@highergear.com.
10 autosuccess.biz

11. june 2003

12. sales and training solution
Pam Holloway By Pam Holloway
How to Clone Your Best People
Moderately Now that you have this information, you need to hire people who naturally and
successful business have a head start on what to look for automatically embrace procedures. You
owners and when you begin to interview new sales need to hire people who will not vary
managers know who people. You simply look for people with from that procedure. But, if you know
their top performers those specific qualities. what to listen for, you’ll recognize it in
are. Highly the language when your applicant talks.
successful owners and managers have The challenging part.
learned how to clone those top performers. How do you identify the common traits? Here’s how to use the LAB profile
That’s the challenging part, and it requires to create a profile. Interview the top
Whether it’s sales people, office staff or a tool. Again, the choice is yours. You can performers in a specific job, asking
service technicians, did you ever say, spend literally millions and get a highly eight to ten conversational questions
“If only I had more people like Bob, the effective, high-tech tool. Or, you can that enable you to determine their values
entire department would operate in the spend mere thousands and get a highly and how their minds work. What you
black.” And, chances are that’s correct. effective, low-tech tool. What makes actually identify is called a ‘mental
The question is, exactly how can you this so challenging is that there are a lot filter configuration’. That configuration
clone your best people? How can you of choices. You probably already know becomes a template or map to identify
add more black ink to your bottom line about the many variations of personality your next superstars. Then, use those
by hiring better people? tests and behavioral assessments. same eight to ten questions to interview
Chances are, you’ve also discovered lots job candidates. You can immediately see
You have two basic choices: of variation in the quality and validity of how closely a candidate’s mental filter
those personality tools. configuration matches those of your top
1. high-tech and expensive performers. The closer they are to the
2. low-tech and affordable To make matters worse, most assessment template, the better they will perform.
processes tend to employ tunnel-vision The farther they are from the template,
You most likely want low-tech and - they focus on assessing the applicant the more money they will cost you.
affordable. This means you’ll take more within a vacuum. They don’t take time
of a hands-on approach. to understand the job and the success It’s a low-tech, practical and amazingly
criteria. It is common sense to know effective approach. The important thing
First, identify your top performers (in a what you’re looking for before you start is not so much what tool you use just
specific job). Take sales as an example. looking. Unless your tool can help you that you look at the characteristics of star
address the job and success within your performers and use those as your guide
Second, recognize how your top sales culture, you could easily end up with an for hiring.
performers do what they do. In particular, excellent performer who hates showing
you look for the common qualities and up for work. Use the right language to
competencies among your star sales attract exactly the people you want.
people. In addition, if you’re not careful, you Once you identify the specific
could easily end up assessing all the characteristics you’re looking for
Third, build a profile of those qualities wrong things, and not even know it. in a candidate, you can then use the
and competencies. You can use a few You could chew up a lot of time and appropriate language in your recruiting
conversational questions to get key expense and get very little return on your ads to attract more of the people who fit
information from top performers. Say investment. Be cautious when selecting the profile. For example, if you know that
you discover that your top sales people the tool. Unless you employ 30,000 your best sales people are competitive,
possess five common qualities and people, keep it simple and low-tech. you might include language like “Do
competencies: you want to be the top sales person in
A perfectly logical solution. your region?” or “Are you driven to
Proactive – tends toward direct action win?” If you want to attract a person who
rather than thinking about things. One tool that contains everything you
probably want (low-tech, affordable, is proactive, you would use proactive
Persuasive – good at building rapport, highly effective) is the language and language, in other words, short, active
leading, influencing. behavior (LAB) profile. LAB profiling is sentences. For example: “Want to take
based on the scientifically valid concept control?” “Want to get the job done?”
Competitive – invigorated by “Like to Win?”
competition, likes to win. that people’s language gives you a
direct link to their behavior. If you listen
Positive – always on the lookout for the carefully to the words someone uses, you
positive in any situation. can understand how his/her mind works. Pam Holloway is the Co-founder and
Here’s how it would work for you. If CEO of AboutPeople Training and
Social – invigorated by social you teach your sales people to follow Consulting Firm. She can be contacted
interaction. a specific sales process, you absolutely by email at pam@aboutpeople.com.
12 autosuccess.biz

14. sales and training solution
Timothy Gilbert By Timothy Gilbert
Emulating Success
On most any sales Do any of these sound familiar? Most successful. That’s how you learn to do
force there will, are just rationalizations or blame- a task you have never tried before. If
almost always, be shifters. Average or poor sales people you model great and successful people
those sales people tend to think that it’s the customer’s you can learn their techniques and
that sell less than fault or management’s fault. It certainly attitudes for success; and take those
the average, those cannot be their fault. The truth is that successful ideas back with you. Make
that sell just the average and those that when someone falls into the trap of sure that the ideas are realistic for you.
excel beyond the average. Interestingly, believing one or more of these excuses, Set goals for yourself that are aggressive
most sales people fall into the ‘average’ they stop their chances at becoming a but achievable, and then build on them.
category, probably because poor sales real success. Create a new positive attitude for
people leave the business and star sales yourself and your selling techniques.
people are rare. Many times sales people The reasons why sales people develop Use new, powerful and positive ideas to
just can’t get over that ten-unit hump. these negative attitudes are that they sell your customers. Build up a language
They work hard, demo every customer have seen them happen. It’s true, of positive actions and ideas – replace
yet still can’t crack that barrier. If you some customers resist a sales pitch, the, “It can’t be done,” with “I’ve seen it
are in this category, don’t let it ruin the management has restructured bad deals, done, and I can do it too.”
business for you. Don’t pack up and sales people do get assistance from
quit. You can get over the hump. management (that’s what they are there Another key is to reinforce success in
for), sometimes sales people lose deals the minds of customers as well. Live
In order to achieve this you have to that they felt they should have made, and their emotions with them. Remember,
change your attitude about selling. Here many times customers do not qualify for how excited you were when you bought
are some of the negative attitudes about the car loan. But those situations do not a new car. Their new car is exciting to
selling: always happen. Because they have seen them too. Be excited for them, as if you
it and probably heard others talking were buying your dream car. Reliving
• All customers have built-in about them, they begin to believe them. the excitement in your mind helps you
resistance to car sales people; relate to the customer and plants a seed
• Management tries to find ways Instead of listening to these negative of excitement in their minds as well.
to nix a sale and sales people have career breakers, try the following things: A successful and stimulating purchase
to work extra hard just to convince experience will lead to future sales.
management to keep a deal; • Talk to successful sales Success builds on success.
• Those sales people that sell so professionals. Find out what made
many units are getting help from them successful - and copy them. If Key points to remember:
management; they can be successful so can you. 1. Reinforce only positive habits and
• I’m never going to get any better • Stop taking negative attitudes to ideas. Stop believing in mediocrity
at selling; the sales floor; your customers will or that others have control of your
• I could sell more units if see them and respond negatively destiny.
management would just do a better to them. Instead, take positive, 2. Find someone who has been
job of advertising the products; or successful ones when you greet the successful and emulate them. Take
-Too many of the ups that I get are next customer. their ideas and techniques for
just deadbeats who can’t qualify for success and use them to help achieve
a loan; they are ruining my chances People that want to be successful your own success.
to sell more cars. emulate those that are already 3. Find a good fit for you. Some
people may not be perfect models
for you.
4. Build up a language of success
to replace the mental images of
rationalization and limitation.
5. Live the sale as if it were your
own; be excited for the customer.
6. Plant the seeds of success in the
customer’s mind as well. Success
builds on success.
Timothy Gilbert is an Associate
Professor and Chairman of the
Automotive Marketing Department at
Northwood University Florida Campus.
He can be contacted at 561.478.5527, or
by email at gilbert@northwood.edu.
14 autosuccess.biz

15. marketing solution
Kevin Farrell By Kevin Farrell
What You Need
in the Detail Department
There are many sides of a vehicle. Having only lights the vehicle.
new and interesting mounted high on the ceiling simply will
products and not do. If the vehicle is lit correctly, the If you are willing to spend a little more
equipment out now combination of these types of lighting money, use an electronic paint thickness
that exhibitors have will show imperfections that most natural gage to correctly measure the paint film.
to sell. Even in the light will not. If your detailers can make There should also be a lift in every detail
detailing field there are fancy ‘gadgets’ the vehicles look spectacular under these bay so the detailer is able to see the sides
and ‘gizmos’ that may seem to make life lighting conditions; the cars will look even of the vehicle better, and it will save wear,
easier. Some companies will even claim more brilliant when brought outside. tear and fatigue of the detailer.
that the fancy equipment will improve a
detailer’s skill. Here is the straight scoop Equipment. Bottom line.
on what you may need and how your shop The truth is you do not need a lot of If you set up your detail shop correctly,
should be set up to ensure your money is fancy equipment and gadgets to correctly and give the detailers the needed
well spent. detail vehicles. Of course, some things equipment, while staying away from the
are mandatory such as: compressed air, expensive and needless gadgets, the shop
Shop size. vacuums, carpet extractors, high speed will be more efficient and profitable. Of
Having enough room to work is one of the buffers, orbital buffers, a large selection course, training your detail staff is a key
most important things to consider when of the correct buffing pads, towels and element for spectacular looking vehicles
building or setting up your detail area. A chemicals to make all of the cars look like and the highest profits.
good rule of thumb is to have each bay new. However, these items are cheap as
at least 15 feet wide and 25 feet deep. A far as shop equipment goes. In your wash Kevin Farrell is the Owner of Kleen
detailer needs to be able to fully open up bay, you will need a pressure washer (hot Car Auto Appearance. He can be
the doors on each side of the vehicle and water preferred) a selection of brushes, contacted at 888.302.6400, or visit
still be able to pass by without bumping wash mitts and chamois to wash and dry www.kleencarauto.com.
into the wall. This allows for a vacuum
or carpet extractor to be rolled around,
and lets the detailer step back to view
the side of the vehicle to ensure that all
imperfections and blemishes have been
removed. The total square footage of the
shop can be determined by answering a
few of these questions: The Architects dedicated to serving the needs of automobile dealers.
• How many cars do you plan to work
on simultaneously?
• How many detailers will be working
in the department? “ We had the good fortune to work with
• Will service washes be done by the David Sova [of Car Store Design] he
detailers, and how many wash bays provided not only top ideas in design but
will you need? professional treatment and accountability.
• How will the shop be configured?
You never want to move cars around that Dane Gouge, General Manager
are being worked on to get another car in Astoria Ford Hyundai
or out. Many dealership detail departments Astoria, OR
are cramped and poorly laid out, which
will affect overall performance, efficiency
and the quality of work.
Lighting.
Along with having enough room to work,
another very important thing to have in the
detail shop is the correct lighting and plenty Car Store Design is a full-service Design + Architecture practice
of it. The most skilled and knowledgeable based in Seattle and Ft. Lauderdale. To learn more call David at
detailer will miss imperfections if he/she 206. 567. 5460, email us at information@carstoredesign.com,
can’t see them. A combination of metal or visit our web site, www. ca r storede sig n.com.
halide and fluorescent lighting is the key
to illuminating a vehicle correctly. You
need lights mounted on the front and
side walls to properly direct light to the
june 2003 15
13

16. feature solution
By Mark Strong The next generation Sales & M
Ma
Customer relations • Plus dozens of other valuable to-day basis. The difference is that the
management features. information is updated automatically, in
programs are real time. Management obtains up-to-the-
computerized A secure, web-based system. minute information on the operation of
programs that help dealers work with One of the major shortcomings of the entire dealership. The reports can be
their customers by providing automated first-generation CRMs is that their use as broad or as detailed as the dealership
reminders, customer follow-ups, is limited to designated computers at requires, and can include dealer group
appointment scheduling and so on. While the dealership, usually on the dealer’s reports for single and multiple dealership
first-generation programs generally do local area network. Second-generation groups.
an adequate job, they tend to be costly customer management systems, on the
to purchase, set up and maintain. They other hand, are web-based applications. Security as good as a bank’s.
can be fairly limited in scope and often As long as an individual has an approved Because the new CMSs are web-based
may only be used on the dealership’s login name and password, he or she can applications, with all that dealer data out
networked computers. These restrictions access the system from any computer that there on the Internet, security is a prime
have left many dealers longing for a has Internet access. There is no network concern for CMS users. For this reason,
system with greater capabilities and to setup and maintain. This greatly when a dealer’s password-protected CMS
have even prevented some dealers from reduces the hardware, networking and website is created, it is secured by state-
setting up a computerized CRM in the personnel costs and makes a CMS far of-the-art, 128-bit encryption – the same
first place. more affordable. extreme security that banks use to protect
their websites. For ease of transition, if the
Not just a CRM … a CMS. “We had been considering one of the dealer already has a website, the customer
The new next-generation systems ordinary customer relations managers,” management system can usually be
have arrived and are not your ordinary says James Hodge at Heritage Ford integrated with that site, still employing
customer relations managers. Rather, in Corydon, IN. “But we’re a small the same ultra-secure protection.
they are tightly integrated, easily dealership with limited facilities and
managed, web-based systems that meld a limited budget. In order to make the Once set up, the dealer’s CMS site can
customer relations, inventory, service system work, we would have had to be reached from practically anywhere
and sales management into extremely install an entire computer network. You’re in the world by anyone with computer
cost-effective, user-friendly tools that talking about a lot of money. With one of access to the Internet. However, no one
can be used not just at the dealership, the new customer management systems, can enter the site unless they have an
but practically anywhere in the world. we can use the computers we have – even approved login name and password.
There’s even a new name for them: our home computers – to access and use Even then, unless the individual is a high
Customer Management Systems. CMSs the system. The savings are enormous.” level manager or system administrator,
take advantage of the latest advances each individual’s access is limited to pre-
in computer and Internet technology to Here’s how the system works. approved privileges.
offer: A complete, integrated system.
Technical professionals work closely with In other words, a sales person cannot
• Vastly improved ease of use. the individual dealer to adapt the system access the parts of the system that involves
• Greater flexibility. to meet the company’s needs. Since these dealership management functions. He or
• Adaptability to the needs of the systems are generally integrated with all she is limited to the messaging, email,
individual dealership. major dealer management systems, this customer management and inventory
• Integrated dealer database usually requires a minimum amount modules, and then only to those modules
management. of customization. Dealers usually can for his/her dealership within a multi-
• Access from any computer with choose from a number of modules, dealership auto group.
Internet access. including customer reports and records,
• Real-time sales and customer inventory management, dealer group The advantages
tracking. reports for multiple dealer groups, of a web-based system.
• Advanced customer contact, follow- business development center (BDC), and Web-based customer management
up and scheduling procedures. an Internet leads program. systems offer a number of advantages
• Excellent brand development over a customer relations system run on
capabilities. The majority of customization is usually a local area network.
• Internal messaging and email. performed in the reports modules,
• Daily work plans. adapting them to each dealer’s culture • Lower cost. There is no need to
• Fully scalable and customizable and processes. In fact, many function set up a costly network, because
operation. as time-saving, automated versions of the system exists on the web and
• Online technical support, 24/7/365. the reports the dealer uses on a day- not on local computers. There is no
16 autosuccess.biz

17. Introducing the First
Customer Management System
& Management CRM is here. Real-time Management that can make a real difference in sales...and your business.
costly network cabling to install, no the dealership’s databases. Perhaps capabilities across the Internet.
expensive servers to set up and run. they need a customer phone number
and address or the inventory of a • Automatic, no-cost upgrades.
• 100 percent capture of showroom, certain make and model vehicle. On most of these next-generations
phone and Internet trafÞc. Because With the next-generation customer systems, dealers need never be
these systems are so tightly management systems, the person can concerned about their system being
integrated, capturing and tracking log onto their dealer site and obtain out-of-date. Most of these systems
customer information is easier, faster the information instantaneously, provide regular, no-cost upgrades
and more reliable. Follow-through without having to phone the office, automatically on the system
operations are completely automated, be transferred to the correct person software, making sure that they
including phone, email and mailed and have that person look up the deliver the maximum performance
material. The electronic leads portion information. If someone is working and reliability.
of the systems allows management at home or traveling, that person can
to automatically assign Internet- access the CMS and work at a virtual • Designed to boost achievement.
acquired leads to the appropriate office away from the dealership. Any dealer knows what an industry
sales persons. In fact, these leads can achievement award can mean for
be directed to web-access phones the dealership. These systems have
and handheld PCs, for even greater been designed specifically to help
flexibility and faster response. dealers earn manufacturers’ awards
such as Ford’s Blue Oval, Lincoln/
• EfÞcient data mining. Captured Mercury’s Premier Dealership Award
customer information is one of or Chrysler’s Five Star Award. They
the most valuable assets of these make it far easier to meet award-
systems. Using this data, dealers winning customer service standards
can profile customers and direct and maintain those standards year
your marketing specifically to their after year.
individual needs. It’s not only more
effective, but it is a lot less expensive “We’ve always worked on the premise
to target customers and prospects that the customer is king,” says Kurt
in this manner. In short, a dealer Maletych, Vice President of Sales for Ken
can generate a higher percentage of Grody Ford in Buena Park, CA. “Now
sales with a far lower investment. we can really treat them like royalty! I’ve
Marketing can be targeted by model gotten a lot of feedback from customers
line, for fixed operations, for finance who tell me that they’ve never been
department products, for after-market treated better or felt more comfortable at
products and more. a dealership.”
General Sales Manager Billy Worden, of Harry Hutton is a sales manager at Ruxer Many of these systems have been
Bill Collins Ford in Louisville, KY, says, Ford Lincoln-Mercury in Jasper, IN. “I designed by auto dealers, for auto
“We’ve been able to cut our marketing use our customer management system dealers, to provide ‘street-smart’
budget by more than 35 percent because all the time when I go to auctions,” he business management integrated with
I can generate direct mail and email says. “I can check our inventory and our next-generation, web-based customer
materials targeted specifically to the customer profiles to see what vehicles we relations. They are not only the most
requirements of individual customers. If need, compared to what’s available at the technologically advanced, but also the
a person is looking for a particular type auction. I can bid smarter and get a better most comprehensive and easy-to-use
of SUV, I can refer to that specific vehicle turnover. And that means better use of my systems on the market.
in my letter to him or her. It’s a far more time and better profits.”
effective way to hook the customer’s With one of these customer management
interest and get him or her back in our • E-mail and internal messaging systems, a dealer can go from the 19th
showroom.” addresses for all users. Every century to the 21st century by leveraging
individual designated as a customer the very latest technology.
• Offsite access to onsite management system user is assigned
information. There are countless an e-mail and an internal messaging Mark A. Strong is the Vice President and
incidents where a dealer’s address, enabling group and COO of e-PULSETrak.com. He can be
management or sales personnel need individual internal communications, contacted at 800.996.1952, or by email at
to access information from one of as well as full-featured e-mail mstrong@e-pulsetrak.com.
june 2003 17

18. profit saving solution
Thomas Lower II By Thomas Lower II
Tool Reimbursement Programs:
They Can Help Your Dealership
The dollars that week. Since the dealership has to match Form W-2, and are exempt from the
technicians spend 7.65 percent for FICA/Medicare, the withholding and payment of income and
on tools and dealership will save $40 per month on employment taxes.
equipment are this one employee.
not taxable and
should not be Tool reimbursement programs do more
included with payroll. If technicians are than help employers and employees
not being paid for tool and equipment stop paying unnecessary payroll taxes
expenses separately from wages, then and payroll related costs, they provide
your dealership is losing profits, and hardworking technicians with an added
your technicians are losing take-home employee benefit. The solution falls
pay. Tool reimbursement programs help under one basic concept, to separate
dealerships and dealership employees amounts paid to technicians for their
save money, by properly identifying and tool and equipment expenses from
separating, from wages, the amounts their wages. If employees are spending
that technicians incur as an employee money on tools and equipment, and
business expense. You’re probably they are legally defined Form W-2
asking, “How does this help my employees, both the dealership and the Choosing a plan provider.
dealership or my employees?” technicians have a lot to gain by using a Operating a rate based Accountable
tool reimbursement program. Plan is a way to increase company
Under your current payroll method. profits and increase employee take-
As an example, use a technician paid History and compliance home pay. Choosing the right service
at $20 per hour, working 40 hours per of tool reimbursement programs. provider is the most important step in
week. He would be grossing ($20 X 40 The concept of reimbursing employees the entire process. Accountable Plan
hrs.) $800 each week, then $228 would for business expenses is not new; rules are detailed and it takes the most
be taken out for taxes. employers have been reimbursing experienced plan providers to give you
employees for mileage, business lunches, the most compliant program. Competent
Under a tool hotels, etc., for many years. providers should bring dealerships years
reimbursement program. of research and analysis on tool and
Use the same technician paid $20 per The IRS decided that these employees, equipment expenditures. In addition
hour, but allocate $3 per hour to be paid that bring their own tools and equipment to providing a quality Accountable
for his tool expenses and the remaining to the job, should be reimbursed for Plan, a good provider should offer
$17 to be paid as wages. The $17 per their equipment through an Accountable dealers some type of guarantee, or
hour wage check would still have all of Plan. All payments made through an indemnification and audit support in the
the taxes withheld, but the $3 per hour Accountable Plan are not subject to event of an audit. A good provider will
payment would not be taxable; thus the any payroll related taxes, state taxes also offer a knowledgeable Compliance
technician would increase his take-home or federal income tax. Section 1.62- Department consisting of a CPA and tax
pay, because he is not paying taxes 2(c)(4) indicates that amounts treated attorney that has experience in the Tool
on the portion allocated for expense as paid under an Accountable Plan are Reimbursement Industry. The provider
reimbursement. Based on the example excluded from the employee’s gross chosen to operate a dealership’s plan
above, the technician’s weekly take- income, are not reported as wages or should be able to provide live references.
home pay would increase to $605 per other compensation on the employee’s Whichever program a dealership decides
18 autosuccess.biz

19. continued
to implement should be scrutinized by a
CPA or tax attorney.
Willard DeFilipps, CPA, is an expert in the
automotive industry. In his publication,
(Dealer Tax Watch, September 2000
Issue, p.12-13) Mr. DeFilipps challenges
dealers to ask providers some of the
following questions:
• In which category does the technicians’
pay arrangement fall?
• If the plan is intended to qualify as an
Accountable Plan under Section 62(c)
rules, are all three of the following
requirements satisfied? - Business
Connection - Substantiation - Return of
amounts in excess
• Is the plan written and when was the
plan last revised?
• Are the written terms of the
arrangement, lease or contract followed
in practice?
• How is the plan operating in comparison
with the written description of how the
program is intended to operate?
• What kind of weekly time and actual
tool usage records and/or reports are the
technicians completing and submitting?
• Has the plan provider modified its
plan to make any changes as a result
of the IRS Coordinated Issue Paper or
any other IRS pronouncements or court
cases?
• Has the dealer asked the service
plan provider to agree to reimburse or
otherwise indemnify the dealer for any
penalties, which the dealership may be
assessed as a result of the failure of the
plan to pass scrutiny by the IRS?
Tool reimbursement summarized.
Implementing a tool reimbursement
program into your dealership will save
your dealership and your employee’s
money. The IRS has looked at tool
reimbursement programs and insists
that any program must meet all of the
requirements of the Accountable Plan.
In deciding which plan provider to
use, insist on a competent Compliance
Department that will fully answer all
of your questions and the questions that
your accountant or attorneys may have.
Make sure that the provider you choose
guarantees their program. Take an honest
look at these programs, recognize the
vast amount of benefits you and your
employees could realize, talk to your
CPA and have him talk to a plan provider.
It will be worth the time invested.
Thomas Lower II is the President of
Pro-Check National. He can be
contacted at 877.762.4325, or by email at
tlowerii@prochecknational.com.
june 2003 19