A SPECIAL ISSUE NADA SPECIAL ISSUE NADA SPECIAL ISSUE NADA SPECIAL ISSUE NADA SPECIA

.biz

Earnhardt.com Schomp.com
ParagonCars.com DickHannah.com
HerbChambers.com RedMcCombs.com
HouseofCourtesy.com DaveSmithMotors.com
Tasca.com Sheehy.com
January 2005
756 South 1st Street PRSRT STD
Suite 202 US POSTAGE
Louisville, KY 40202 PAID
LOUISVILLE KY
PERMIT NO 879

a division of Systems Marketing, Inc. www.autosuccess.biz

 • BZ Results 3124
BZ Results is a digital marketing & training company that has a great new system that helps dealers sell & service more vehicles proÞtably.
TOP 10 BZ’s clients include United Auto Group, Group 1, Herb Chambers, Red McCombs, Sheehy, Paul Miller, Larry Miller, Courtesy Chevrolet,
BEST OF THE BEST Tasca and others. BZ dealers are selling 100-700 incremental units a month from this revolutionary new system. To get a free 180 second
NADA tour of this new system visit: BZResults.com

2005
• J&L Marketing 4731
Established in 1991, J&L Marketing is without equal when comparing automotive direct marketing companies. Their philosophy is simple - there are only three ways to
grow your dealership: 1) Increase your number of customers, 2) Increase your average gross per deal and 3) Increase the frequency of repurchase – get more residual
value out of each customer. With a customer base of over 6,000 dealers and managers nationwide their ground-breaking J&L Marketing Growth Strategy™ is producing
staggering results and has eliminated the number one challenge for most dealerships - trafÞc.

• Dealix 5415
In 2005, Dealix is expanding their quality and service initiatives, continuing to help dealers sell more cars, more efÞciently. Their combined efforts with The Cobalt Group will
bring an even more dynamic product to their customers to increase sales and help improve dealership efÞciencies. Dealix has been rated the number one lead provider in
studies by J.D. Power and the Dotcominsider. Their goal is to continue to win over customers with high quality leads and superior service. The Dealix Quality Team enhanced
their lead scrubbing and call veriÞcation technologies to ensure customers receive leads only from the most serious car buyers. Dealix is committed to provide even better
one-on-one service and has expanded it’s Lead Acquisition Network, adding hundreds more of the best auto sites on the web.

• Autobase 4819
Autobase, Inc. has provided the automotive retail market with premier customer relationship management (CRM) solutions since 1988. Autobase Sales Center™, the ßagship
of the Autobase suite, is now in its sixth generation of development, boasting 17 years of successful implementation in dealerships of every demographic. Over 15,000 auto
professionals go to work every day and use Sales Center™ to sell more cars. Newly-released and already manufacturer-endorsed for it’s innovative approach to business
development, the Autobase Loyalty Center™ is the most recent addition to their suite of solutions. Their rich history, strong reputation, comprehensive industry knowledge,
and pioneering work in feature-rich CRM and BDC technology have long impacted the bottom line for proactive dealers nationwide.

• TimeHighway.com 4430
TimeHighway.com is the premier, on-line solution for service department appointment scheduling, allowing dealership customers to make a conÞrmed service appointment
24 hours a day, seven days a week. BeneÞts to the dealership include: replacing telephone-based scheduling with Internet technology that enhances the effectiveness
and customer satisfaction of the dealership, reduces in-bound telephone calls and drives trafÞc to the dealer’s website. Customers prefer the ease and convenience of
the Internet to do their banking, shopping, make travel arrangements, etc. and now with TimeHighway.com, they can schedule their service appointments online, no more
waiting on hold to make an appointment.

• The Joe Verde Group 931

JOE VERDE • Your Training Partner Since 1985, the Joe Verde Group has been helping dealerships improve their sales and gross by providing the best sales and sales
management training in the automobile business. Joe Verde’s up-to-date sales training helps dealerships implement effective sales training that works to build a solid sales
team and long term, satisÞed customer base. Joe’s management training addresses today’s challenges and tomorrow’s needs by helping dealers build top performing
management teams. The bottom line… the Joe Verde Group provides a dealership with clear-cut solutions that boost their sales, proÞts and customer satisfaction.

• ProResponse 3058
ProResponse, Inc. CRM with proven results, represents nearly 300 dealers nationwide. Their services are geared toward total showroom control with ProScan® Touch
Screen driver’s license reader, prospect tracking (phone, ßoor and Internet), and sold customer follow-up for Þve years. ProResponse is a service company assisting dealers
each day with database management, data cleansing, data mining, and effective target marketing. They are e-mail enabled and FTC compliant, running prospects and
customers against the “Do Not Call” list daily. They provide on-site training and monthly service visits “In Your Dealership”. Their programs are also written in Spanish and
French. They seamlessly integrate with Who’s Calling, Call Source, Call Bright, Call Command, EPencil and many others.

• American Auto Exchange 5755

Founded in 2001, American Auto Exchange is revolutionizing the way dealers conduct business by Þnally assembling all the pieces necessary to running a streamlined, high
tech used car operation. Through the use of the aaXchange tools, dealers are dramatically improving the way they operate their used car departments.
American Auto Exchange works with thousands of dealerships across the United States who have chosen to utilize the American Auto Exchange Real Time Vehicle Trading
Network, the aaXchange proprietary Vehicle Management System (VMS) and a new integrated intelligent vehicle launch product with Ebay.

• Ultimate Warranty Corp. 1411

Ultimate Warranty Corp. provides leading-edge service contracts and ancillary F&I products. More than 7,000 dealers have recognized the advantages and have beneÞted
from selling Ultimate Warranty Corp. products. Ultimate’s package has proven that it can propel its client base to the front of the pack in terms of quality, proÞtability,
compliance, customer retention, and CSI. Stop by the booth, and Ultimate Warranty Corp.can show you how they are making a great thing even better in 2005. Ultimate
Warranty Corp. has some great new things to offer to its clients at no additional cost. Ultimate Warranty can truly show you how to do more with less.

• The WolÞngton Group 527

The WolÞngton Group produces high performance sales events on behalf of new car dealerships across the country, with no outsourcing or subcontractors. The Þrm maintains long
term relationships with dealerships, providing marketing territories and strategies that help The WolÞngton Group dealers outperform their markets. A WolÞngton Group produced
event brings an atmosphere of fun and excitement to the dealership, creating a great buying experience for the consumer and a positive selling experience for the dealer’s sales team.
Harry WolÞngton, President, provides his insight and experience to auto dealerships through his six sales teams. “Being a small company, we are more focused on each individual
event. Our dealers get an attention to detail from our staff paralleled by none.” It’s this philosophy that has earned The WolÞngton Group a spot in this year’s “Best of the Best”
 NADA 2005
TOP 10 BEST OF THE BEST

S
N
A
E
L
R
O
W
E
N E
✴
Ernest N. Morial Convention Center S
BC D E F H
N
G
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58 Cars Sold Last Month with Dealix Leads
Magnussen’s
Magnussen’s Dodge
Dodge Chrysler
Chrysler Jeep
Jeep

Quality Leads | Superior Service | Dealer Control Features

“That’s why I get my leads from Dealix. When it comes to selling to Internet customers, my team goes beyond
our immediate market area. In fact, we pull customers in from as far as San Francisco. With Dealix, we can get leads
from a wide mile radius, or we can target specific Zip codes. The choice is ours. No other
level of control and this many sales.”
Steve Jackson, Internet Fleet Manager, Magnussen’s Dodge Chrysler, Jeep of Auburn, CA
TOP 10
BEST OF THE BEST
NADA
2005

Dealer Control Features

Dealix AutoUSA Autobytel
Territory ControlSM
Standard N/S N/S
Choose multiple Zip Codes for each franchise.

Territory ControlSM
Target your ideal sales territory – choose any Standard N/S N/S
mile radius.

Inventory-Driven Lead ControlSM

Standard N/S N/S
Choose leads for the models you want to sell.

N/S = Not Standard July 2004 Sales

Start selling more cars today! Call Dealix now. (866) 253-5125
or visit us online at www.dealix.com.
 TOP 10

Secrets of
BEST OF THE BEST
NADA
2005
Dealership
Overachievers –
No One Else
Will Tell You:

• What the best “response generating”

ads all have in common.

• The three most important goals you

will ever set for your dealership.

• How to condition your current

customers to buy from you
more often.

• How to create advertising that

attracts quality customers who
negotiate less.

• How to out-market your competition

and dominate your market.

• What the ultimate goal of marketing

should be today.

• How to create advertising that actually

increases your closing percentage.

Special Free Offer: Call 866.856.6782 now and ask for Sarah to receive your free copy of the J&L Marketing
Ultimate Growth Strategy, featuring an actual case study of Johnson City Honda.

You’ll discover the exact growth strategy and marketing plan created by J&L Marketing and used by Johnson City
Honda and read how, in just their first four months, they increased sales by 65 units per month and their gross averages
by over $1,300 per vehicle!

Visit us at NADA in New Orleans at Booth 4731.

866.856.6782
www.jandlmarketing.com

move the crowd. crush the competition. count the money.

 TOP 10
BEST OF THE BEST
NADA
2005
MEET YOUR NEW E-PLOYEE...
WORKS 24/7 WITHOUT A SICK DAY OR VACATION!

TIMEHIGHWAY.COM replaces telephone-based scheduling with internet technology that enhances the effectiveness
and customer satisfaction of your dealership. By scheduling appointments directly through your web site, your customers
make conÞrmed appointments instantly without call-backs. TimeHighway.com puts your service department’s schedule
on your web site, making it possible to schedule appointments 24 hours a day, 7 days a week, from anywhere.

INCREASED CUSTOMER

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 Increase Sales by
✓ FREE Follow-up every phone call, ßoor up, be-back.
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use to manage your people, not your systems.

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Limited Exclusivity. Call us before your competition does!
After seven years with ProResponse I can still say it is

Going to the
the best investment we’ve ever made.
-Larry Jones, Jones Junction

The Koons Automotive Group sold over 44,000

vehicles last year with the help of ProResponse. NADA Convention?
-Alex Hafer General Manager
Visit us at
Booth 3058
ProResponse is the only system I have ever used where
the sales people are actually motivated to use it. Our
new car sales are up 21% in one year.
-Jeffrey Abel President, Miller Toyota

Our closing ratio has improved 38% and our

“be-backs” have nearly doubled. When we first
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RORESPONSE
866.596.6889
month, an average month is now 350!
-Kevin Cohan General Manager, Jim Coleman
Cadillac Infiniti Toyota

Available in Spanish www.ProResponse.com

 I N S I D E
10 Chess Champion Has the Drive to Succeed Chula Schlesinger
12 Are You an IMPACT Player Zig Ziglar
13 10 Steps to CRM Success Bryan Anderson
14 On Becoming a Servant Leader Adam DeGraide
16 Almost $600,000 to the Bottom Line Bruce Thompson
18 Silence is Golden Anthony Hall
19 How to Identify and Sell to the Entrepreneur Personality Carol Martin
20 Discover How to Eliminate Your
Dealership’s ‘TrafÞc in The Door’ Challenges Scott Joseph

22 2005 eDealers of the Year Patrick Luck

26 Management Driven Dealerships Joe Verde
28 Courtesy Chevrolet’s Four Keys to Selling 380 Additional Units Robert Revere
30 The Importance and BeneÞts of a Credit Application Tony Dupaquier
31 Across the Board Increase in Service and Parts Revenue Joseph Schmoke
32 Huge Dividends in Happy, Loyal Customers Karen Dillon
34 Sophisticated e-Newsletters Create
Interest, Detect and Qualify Buy Signals David A. Fish
35 The Value of a Professional T.O. Jim Adams
36 Building Your Business Mark Tewart
37 Human Nature: Taking the Path of Least Resistance Kirk Manzo
38 I Think I’ll Have an Idea Michael York
Psalms 23: 1 - 6

The Lord is my shepherd, I shall not want; he makes me

Choose Freedom • Support Our Troops lie down in green pastures.
He leads me beside still waters; he restores my soul.
He leads me in paths of righteousness for his name’s sake.

Even though I walk through the valley of the shadow of death,

I fear no evil; for thou art with me;
756 South 1st Street, Suite 202 Louisville, Kentucky 40202 thy rod and thy staff, they comfort me.
! Toll Free: 877.818.6620 " Facsimile: 502.588.3170 Thou preparest a table before me in the presence of my
Patrick Luck, Editor & Publisher Courtney Hill enemies;
• pluck01@autosuccess.biz Sales-improvement Strategist thou anointest my head with oil, my cup overflows.
• chill04@autosuccess.biz Surely goodness and mercy shall follow me all the days of my
Susan Goodman, Vice President life;
• sgoodman02@autosuccess.biz Thomas Williams, Creative Director and I shall dwell in the house of the Lord for ever.
• twilliams03@autosuccess.biz

Success Driven Solutions

AutoSuccess Magazine is published monthly at 756 South First Street, Suite 202, Louisville, Kentucky, 40202; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or
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provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those ofAutoSuccess and by no means reflect any guarantees.Always confer with legal counsel before implementing changes in procedures.
© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess
may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA.
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sf special feature
Thousands of young
men and women who
will be graduating
high school or
college this spring
are looking forward
to the ultimate graduation present. Mom
and Dad have promised a trip to the local
dealership to pick out their first automobile
upon graduation.
There are, however, thousands more young
adults who will never realize that American
dream. Their lives are starkly different from
mainstream America. Many at-risk children
living in the inner cities of our country
have no hope of ever finishing school,
or attending college based on the current
deplorable circumstances in which they
find themselves.
One man has vowed to change this grim
prediction by dedicating his life to the
fulfillment of his personal dream. Orrin
Hudson, a leading nationally recognized
chess champion has turned his dream of
mentoring children through the game of
chess into a life-long pursuit.
In 2001, Orrin was shocked, as was the rest
of the country, to hear of the incident in
Queens, New York in which a young black
youth terrorized the patrons of Wendy’s
Restaurant. He ultimately herded several
of them into the cooler and shot them in
the head for a paltry sum of $2,000. As a
former U.S. Air Force and Alabama State
Trooper veteran, Orrin vowed to make a
10
Chess Champion
Has the Drive to Succeed
difference to ensure this type of violence
stops in America in his lifetime.
Orrin left behind his successful car
dealership, which he had owned for 10
years. He focused every personal asset, and
all of his savings to launch his grassroots
crime prevention program, Be Someone
Inc. He targets crime where it begins, in
the inner cities of our country disguised as
poverty, sickness and hopelessness.
Orrin has developed several mentoring
programs that teach children life mastery
skills, using chess as a metaphor. Using
his personal resources, dedication and
passion for his dream, he has touched the
lives of more than 15,000 children and their
families. His programs have been taught in
more than 30 schools in five states.
Dramatic changes occur in the lives of
these children when someone who is as
powerful a mentor as Orrin Hudson appears
in their lives. They immediately respond to
his charismatic personality and energetic
teaching style. Upon completion of Orrin’s
classes, reported improvements include
extended concentration time, improved
grades, more positive social skills and
concern for others. Students exhibit the
ability to think more clearly and apply
problem solving skills. They develop a
clearer understanding of consequences and
the ability to recognize patterns to increase
forward thinking.
Dubbed the “Piped Piper of Positivity” by
ChulaSchlesinger
CNN, Orrin and his life changing programs
have been featured on Fox News, CNN,
TBS Superstation, as well as having been
highlighted with a full-page article in USA
Today. He has been interviewed and his
programs featured in countless media and
news outlets.
Although the recipient of numerous
community service and leadership awards,
Orrin remains humble and thankful for
the opportunity to serve his community.
His personal reward is in the achievement
of the children throughout the country
currently enrolled in his programs. He has
recently received the 2004 Martin Luther
King Jr. Community Service Award, 2004
TBS Superstation Pathfinders Award
for Education, and 2004 Atlanta Braves
Leadership Award, among others. As a
testament to his selfless achievements, he
is currently the subject of an upcoming
screenplay expected to be released next year.
www.autosuccess.biz
continued

What does Orrin Hudson have? Heart. His
passion for learning, and burning concern
for the students he mentors, keeps him
working long and hard even when his
personal resources are depleted. He needs
our support.
As an author, trainer, coach, educator and
motivational speaker, Orrin has amassed
some hefty accolades.
“I salute you on your quest to develop
yourself in order to make a difference in
others’ lives. We are kindred souls in that I,
too, have always had an insatiable hunger
for knowledge and excellence. Live with
Passion!” Anthony Robbins, No. 1 best
that results. If they can’t find a way to win
at life, we all lose,” Orrin Hudson said.
If Orrin and Be Someone, Inc can reach
them before its too late ... we are all
winners.
“It is not just about the game of chess. It is
about the game of life, and learning how to
win at every level.” Orrin Hudson
To thank you for your consideration and
help with his programs, Orrin has agreed
to appear at your dealership for no charge
and share with your employees and their
families the powerful success mastery
skills that he has taught to thousands. He is
a dynamic personal coach.
To learn more about Be Someone Inc. please
visit the Web site at www.besomeone.org.
To donate, sponsor children or sponsor a
school in your hometown, please contact
Orrin. Be Someone Inc. is a non-profit
organization.
Orrin Hudson can be contacted
at 800.901.3057, or by e-mail at
ohudson@autosuccess.biz.

DEALERS MUST BE
selling author, motivational speaker

“I am extremely impressed with your

organization, especially since our youth
are desperately in need of leadership and
guidance. I admire your zeal, and your
enthusiasm is contagious.” Brian Tracy
No. 1 best selling author, motivational
speaker
ON TELEVISION!
“Orrin C. Hudson is destined to inspire
See why over 100 dealers nationwide have
our youth in a positive and extraordinary INCREASED SALES MORE THAN 30% IN
way. I like his tough-minded optimism and
charisma.” Mark Victor Hansen No. 1 LESS THAN 90 DAYS WITH TELEVISION!
best selling author, motivational speaker
We produce nearly 4,000 commercials
“I enthusiastically endorse the work of a year from our studios. We give you
Orrin C. Hudson, founder and president
of Be Someone Inc. and all that he does
unlimited, high quality television campaigns
for our children.” Jane Fonda, actress, and promotions FREE. With computerized
director media buying technology, we buy television as
much as 30%-40% more effectively than any
“Orrin, you amazed me with your ability
to get results!” Jack Canfield, author,
media buyer in the nation and give you
motivational speaker UNLIMITED TV CAMPAIGNS
You can partner with Orrin and Be
AND PROMOTIONS!
Someone Inc. Through your tax-deductible Call for a FREE demo tape and information.
donation you can sponsor a child or several
children today by offering scholarships to
the program. You will positively change
the life of a child forever. By partnering Larry John Wright, Inc.
Automotive Advertising
with Be Someone Inc., you will be fighting
crime, illiteracy and hopelessness for
thousands of American children.
“America’s Premier Automotive Advertising Agency”
“The future of our country and our youth

1-800-821-5068
depends on what we do today. If we ignore
this generation and allow them to continue
to travel their current path through inner
city poverty and despair, we are also
responsible for the crime and desperation

january 2005 11
sts ms ls fis lr
sales and training solution
How can we become
IMPACT players
in our companies,
organizations,
c h u r c h e s ,
communities, and
families? Here are a few ideas:
I = Intensity
We must be focused on our goals and
dedicated to put forth the effort necessary
to achieve those goals. Intensity doesn’t
mean being so serious you aren’t enjoying
the process. It does mean being serious
enough to overcome obstacles that stand in
the way. Remember: you are either intense
… or you are past tense!
M = Model the correct behavior
Yogi Berra once said you could observe
a lot by watching. We should observe
positive role models and “steal” the
effective aspects of them. We should then
model that behavior on a consistent basis.
12
Are You an IMPACT Player
P = Passion
Passion is doing what makes us feel the
most alive!!! We must develop a passion
for what we do. This passion will get us out
of bed in the morning when we don’t feel
like it. Passion sets fire to discouragement.
Passion creates excitement in those around
us. If you light yourself with passion,
people will come from miles around to
watch you burn.
A = Action
By turning passion into action, we will
surely make an impact! Oftentimes, this
is the biggest challenge we face - putting
our passion into action. There are times
when we don’t feel like being impact
players. Our passion is at a low level, and
the feelings have gone. The key is this: We
must “act” our way into feeling and not
wait to “feel” our way into acting.
C = Comedy relief
We must enjoy our intensity and our
ZigZiglar
modeling and our passion and our actions.
We must enjoy our journey, not just the
arrival. Along the way we must remind
ourselves to have fun, loosen up and laugh
out loud. We shouldn’t take ourselves too
seriously. Remember: Angels fly because
they take themselves lightly.
T = Trust
We must learn to trust ourselves. Too often
we are waiting for all the lights to turn
green before we leave home. There is an
adage that states: trust your gut. We should
learn to trust our feelings.
By becoming an IMPACT player, all those
around you will benefit. Go out there today
and knock’ em alive!
Zig Ziglar is the chairman of the board of
Ziglar Training Systems in Dallas, TX. He
can be contacted at 866.873.0026, or by
e-mail at zziglar@autosuccess.biz.
www.autosuccess.biz
sts ms ls fis lr
sales and training solution
A successful CRM
implementation will
produce a tremendous
return on investment.
Let’s examine 10
fundamental steps to
achieving CRM success.
1. Present to your staff the beneÞts of
using CRM
Sales people will save time because
worksheets, appraisals, credit apps and add
ons are automatically and professionally
laser-printed. They will be able to move
through the sales process effectively and
with greater ease. It provides a simple,
but powerful, first-pencil tool, credit
bureau processing, inventory look-up, and
appraisal management with Blackbook
lookup. Sales people will enjoy automatic
follow up, as if each had his or her own
personal assistant who printed daily letters,
sent daily e-mails, and strategically built
a plan of business 365 days a year. It will
offer real-time integration with your DMS,
Internet leads and phone leads. You’ll
get total buy-in of your sales staff. When
sales people properly use CRM as a tool to
success, they all sell more cars, which will
increase their income.
2. Attack your database on a daily basis
Managers can easily create targeted
advertising campaigns. They now engage
in a daily review of the floor traffic as
well as those deals that can be saved.
Sales people log in every day to find a
planner full of opportunities from today’s
appointments to prospecting for referrals
and closing renewal business. Produce
results every day.
3. Prepare
Your CRM provider is able to efficiently
pull every DMS record possible, for both
sales and service. If a customer’s name and
number has been recorded somewhere at
some point, that customer will end up in
your CRM. These records are scrubbed
against the National Change of Address
(NCOA) database to ensure that your data
is accurate. Then each record is matched
with a current sales person and a plan for
follow-up.
january 2005
10 Steps to CRM Success
4. Build value into every customer record
with processes
You want your CRM feature-rich, and
make sure those features work within
the framework of the sales process. Your
sales people will be able to take an up
and move through the sales process with
ease. Real-time Web-based services
(such as reverse lookup technology and
compliance with the Do Not Call Registry)
will enhance customer records. In addition
to basic contact info, the customer record
will show all prospect history, all sales
history (including gross profit), all service
history, all after-sale history, a complete
customer profile, all credit information,
complaint management (keep track of their
concerns), all e-mail history and the DMS
customer number (to create real-time data
synchronization). Finally, the process will
conclude with a complete analysis of all
data through interactive reporting.
5. Seek the immediate beneÞts of a real-
time environment
Reap the benefits of a real-time environment
in which people, process and data are
managed. At any given time, your managers
are able to see which customers (and sales
associates) are in the dealership. At a glance
they are able to see today’s appointments,
ups, prospecting/owner calls, tomorrow’s
appointments and sold units, both for today
and the month. Managers are able to tell
who is responsible for the numbers (who is
doing their job and who isn’t). First-pencil
figures are seen at the tower the moment
they are created. On any deal not closed,
a manager is prompted to follow up with
a call to save the deal. Now put this kind
of power into the hands of your BDC, and
you’ll see your call center, sales team,
and service team work together in ways
you never could outside of a real-time
environment.
6. Implement a speciÞc process for pipeline
management
Every customer record has value. When
sales people reach a barrier with a
customer a trigger prompts a manager to
step in. When managed in a dynamic and
interactive process, dealerships save money
in a short amount of time. No one slips
BryanAnderson
through the cracks any longer.
7. Execute a strategic plan of business
every day.
Aim at nothing and you’ll be sure to hit it
every time. CRM provides each sales person
with a daily business plan based on clear,
concise rules for every type of customer
(appointments, leads, prospects, owners,
renewals, etc.). It’s an automated list of
calls to be made plus letters and e-mails to
be sent. CRM ties into your phone system
to measure outbound call compliance and
to report on the calls your sales associates
log. All of this data is analyzed in a report
format, allowing you to interactively view
each customer record.
8. Clearly identify customer types and sub-
types within your CRM
Unsold customers cannot be grouped
together. A customer who was unable to
secure financing is different than the unsold
customer who told his or her sales person
that he or she bought elsewhere. A be-back
that is ready to buy in days is different than
a prospect that is ready to buy in months.
With a more detailed approach, you will sell
more cars.
9. Appreciate and acknowledge personal
lead production (PLP)
Your CRM can clearly categorize prospects
found through a sales person’s personal
networking. It tracks referrals received
during calls to sold customers. Teaching
your sales force to produce these prospects
will increase revenue in all departments.
Reward your sales staff for their own
personal lead production.
10. Create a data collection process to
capture 100 percent of customer information
Successful CRM has less to do with cutting-
edge features and more to do with how
those features are designed to fit your sales
process. Attention to process is the main
component a successful CRM incorporates
and the main reason why many solutions
succeed in dealerships.
Bryan Anderson is the founder and
president of Autobase Inc. He can be
contacted at 800.350.9683, or by e-mail at
banderson@autosuccess.biz.
13
sts ms ls fis lr
leadership solution
On Becoming a Servant Leader
How do you define
leadership? Ken
Blanchard, co-author
of “The One-Minute
Manager”, “Raving
Fans” and now the
“The Servant Leader”, defines leadership
as “an influence process – any time you are
trying to influence the thoughts and actions
of others toward goal accomplishment in
either their personal or professional life,
you are engaging in leadership.” It makes
sense to measure our success as a leader by
our ability to shape what others think, do
and say as they try and find meaning and
their purpose in the world. It can also help
to ask if we are being selfless or selfish.
The answer to this question compels us to
search our inner motivations and measure
our actions and habits in light of the goal of
being a better servant leader. In this article
are some ideas for preparing our hearts,
bringing clarity to our minds and applying
and putting into action servant leader
principles within our dealerships, families
“
and communities.
Prepare your
heart, clear
out your mind
and put it into
action. As a
servant leader,
you can
”
accomplish
anything.
Preparing the heart
Regardless of your title and position in the
dealership, any one can be a leader. It has
nothing to do with your job and everything
to do with your character and your
intent. Whether you’re the title clerk, the
receptionist, a sales person, a desk manager
or the dealer, people in the dealership can
feel it when we have a mission and we’re
seeking to lead for a higher purpose. The
14
servant leader is aiming to go beyond
success and social significance and
approaches leadership as an act of service
from the perspective of what we can give
rather than what we can get. Sounds easy,
but leadership for the purpose of serving
others will fail if we fall prey to false pride
and fear.
Close examination of failed leadership
efforts usually reveals a self-serving leader
who has been drawn by pride into taking too
much credit, showing off and demanding
attention or by fear that compels a person
to protect him or herself, hide behind a
title, intimidate others, discourage honest
feedback and ultimately become known as
a control freak. In preparing your heart it
is important to treat others as if they are as
important as we are. Why? We treat people
the way that we see them, and if we see
them as inferior we will treat them that
way. When we treat everyone as if he or
she were valuable and worthy of our time,
respect and attention, what do you think
would happen in our relationships? Do unto
others as you would have done unto you is
the Golden Rule, and it works.
Cleaning out the mind
Garbage in - garbage out. It’s time for us
to take out the trash, wash out the cans.
When we allow our minds to be filled with
so much junk, we truly need to flush out
the garbage and bring in the fresh air of
balanced thinking. All great leaders have a
specific leadership point of view and belief
system that defines how they see their role
and their relationships with those they seek
to influence. Our belief system is shaped
by our past experiences, our attitudes and
feelings, our perceptions, our capacity for
critical thinking and our education. What
we think is impacted by what we feed our
mind. To make a positive impact on what
we think, it helps to surround ourselves with
positive people and positive experiences.
You are who you hang with, never
forget that. As a result, it helps to find a
role model who has the vision to do the
right thing and, from an implementation
standpoint, has the ability to do things
right. Values are also important because
they define what you stand for, and true
AdamDeGraide
success in servant leadership depends on
how clearly values are defined, ordered and
lived by the leader. Living out these values
and core beliefs is where most leaders and
dealerships can get into trouble. You cannot
just talk the talk, you must walk the walk.
Effective implementation requires turning
the traditional hierarchy of a dealership
upside down so that the customers and
the folks on the front line are at the top of
the organization with all of the tools and
resources needed to do their job, while the
leaders serve the needs of the employees;
helping them to accomplish the vision and
direction of the dealership.
Putting it into action
Once you feel and understand the concepts,
are you really willing to change your heart,
your mind and your behavior to become a
better servant leader? Once you step out it
is important to step up and stay the course.
Change is a given, it will happen. Your
organization will adapt or die, and you as a
person will either grow or go. By becoming
“other focused,” we can truly begin to lead
the right way and others will want to follow
out of faith and hope instead of fear and
manipulation. It’s been said that if life is all
about you, than you is all you’ll ever have.
In order to work at taming an addiction to
personal pride it helps to ask some hard
questions:
• Do I think of myself more often
than I think of others?
• Have I developed a habit of giving?
• Can I participate in a group without
taking charge?
• Can I enjoy the successes of others
or does everything have to be about
me?
• Do I use plain, honest speech,
letting “yes” be yes and “no” be no?
• Do I do what I ask others to do?
Prepare your heart, clear out your mind and
put it into action. As a servant leader, you
can accomplish anything.
Adam DeGraide is an owner of
BZResults.com. He can be contacted at
800.526.9804, or by e-mail at
adegraide@autosuccess.biz.
www.autosuccess.biz
 Our consultants will help
your dealership achieve:
• Industry Leading
Gross Profits
• Sustainable Sales
Process
• Maximum, Compliant
F&I PVR
• Professional
Management Systems
• Power Negotiation
Techniques
• Professional
Sales Skills
• Accountability and
Objective Tracking

Give Ziegler and

his team a call!
800-726-0510
You want warm and fuzzy? We got
your warm and fuzzy right here.

Ziegler Supersystems • www.ZieglerSuperSystems.com • 800-726-0510

Call today to speak to a Ziegler Representative
In-Store Consulting - Management Seminars - Video Sales Training - Support Products
sts ms ls fis lr
marketing solution
Almost $600,000 to the Bottom Line
An effective inventory
management system
coupled with real-time
productivity tools,
based on accurate
market conditions
and real-time pricing, will benefit your
organization because it gives the dealership
management team and the sales management
team the knowledge needed to properly
evaluate deals scientifically with little or no
guesswork.
Software systems have been coupled with
the correct level of training and support so
that these new productivity tools are simple
to use, easy to implement and based on real-
time data in an ever-changing market.
Management systems for auto parts are a
standard business practice at dealerships.
It make sense to manage millions of dollars
in pre-owned vehicle inventory as well.
Wouldn’t you agree there is a need?
There are sophisticated systems for managing
pre-owned inventory. All systems have
similar goals: eliminate wholesale loss and
unproductive inventory, achieve consistent
under-30-day turns, real-time inventory
management control at the dealership level,
maintain proper inventory mix, provide
instantaneous buy/sell recommendations,
provide more scientific appraisal tools with
real market values and increased trade
opportunities.
The biggest challenge for the used car
manger can be adopting and embracing
change. Robert Kennedy said, “Progress is
good but change is its motivator and change
has enemies.” The improvements of a used
vehicle management system will increase
profits in all departments.
A dealership that instituted one of these
systems experienced the following.
Before implementation, retail pre-owned
vehicle volume was 97, after 116. Before
implementation, the average retail pre-
owned front end was $953, after $1,220.
Before implementation, the retail pre-owned
turn time was 25 days, after 21.5. This
translated into an average increase in front-
end profit of more than $49,000 – almost
$600,000 to the bottom line that was laying
dormant at the dealership.
Three main areas of pre-owned operations
are appraisals and trade-ins, inventory
16
management and inventory wholesale
acquisition and liquidation.
Most of the companies (vendors), who have
entered the industry of pre-owned vehicle
management, aspire to meet the demand of
those three areas with the ongoing feedback
from dealerships. The goal in mind is to
benefit multiple aspects of used vehicle
operations and encourage the repetitive
management processes for every used
vehicle.
A significant aspect of used vehicle
operations involves customer appraisals and
trades. Trade-ins account for approximately
60 percent of the pre-owned automobiles
retailed by a dealership.
When the dealership knows at the time of
the vehicle appraisal that this model tends
to retail for a strong profit, or that another
dealership within his group could use that
vehicle, the dealer can offer the potential
customer a premium for their trade-in and
subsequently make another car sale – at a
good profit.
Use of these systems and processes can
improve a dealership’s ratio from trading
for two out of 10 vehicles to almost five
out of 10. For an average sized dealership,
this could mean almost 30 additional new or
used car sales in a month, or approximately
$45,000 in additional front and back-end
gross profit.
Vehicle inventory management systems will
help the dealer and the used car manager
determine individual marketing strategies.
Some systems provide consistent inventory
recommendations for each vehicle being
evaluated, as well as data that will help
make better decisions for each car deal.
The consistent use of these tools will guide
managers to stock what will sell best at that
particular dealership. Consistent compliance
with the inventory recommendations will
result in increases of gross profit and an
improvement in turn time of about 15
percent.
These systems provide daily inventory
management tools, such as book-out sheets,
inventory recommendations, past history,
vehicle condition history, book values and
appraisal sheets. The appraisal portion
provides tools for dealers to track appraisal
performance and trade rates and to work
deals with customers. It incorporates real-
BruceThompson
time data from NADA, Kelley Blue Book,
Black Book, MMR, CarFax, AutoCheck,
DealerBasics and other services, many times
within the same screen.
A trade desk tool is utilized to assist those
with multiple dealerships. This tool matches
surpluses and needs between dealers in
a group that can be managed and traded
by a single group manager. You need
accountable key people operating the
management system, working with dealer
groups to customize backend fulfillment
processes, including title processing and
transport notifications, to make the trade
process efficient.
There is also a mechanism for dealers to send
alerts out to other dealers for a vehicle they
are appraising or have in inventory with a
requested buy-now price. Dealers receiving
these alerts can counter with a different price
for the vehicle or request to purchase the
vehicle at the buy-now price. This is ideal
for dealers to shop potential or recent trades
to a network of dealers.
Some systems help to compile the
dealership ideal inventory model and gives
ideal and actual inventory calculations,
recommendations, aging reports, retail vs.
wholesale reports and a quick-glance at a
dealership’s sales history with all makes and
models. This makes the selection process
for trades and the appraisal process more of
a predictable, accountable process.
There are tools that provide a trading network
that matches inventory needs between
dealers, thus creating a real-time channel
for dealers to shop vehicles over the network
while a trade is being evaluated. This can
replace the system whereby the used car
manager calls other used car managers, one
at a time, to see if they would purchase the
vehicle, call wholesalers or purchase the
trade unit at a conservative amount and
later take the vehicle to an auction. Used car
managers are able to identify and purchase
vehicles they know will retail well before a
vehicle ages, therefore reducing wholesale
losses.
Bruce Thompson is the chief executive
ofÞcer and founder of American Auto
Exchange. He can be contacted at
800.901.3017, or by e-mail at
bthompson@autosuccess.biz.
www.autosuccess.biz
sts ms ls fis lr
sales and training solution
Sales people need
to bring out the true
condition of the
customer’s trade-
in professionally
because by not doing
so, we are leaving gross profit on the table
due to over-allowing on trade-ins.
This can be corrected with a silent trade
evaluation (condition, not value). The
process starts after a quality demonstration
drive and commitment to buy if all terms
are agreeable.
Once the commitment to buy has been
established, proceed to your trade
evaluation. Ask the customer if there is
a vehicle they would like to sell to the
dealership. “Help me, help you, sell your
vehicle to ABC Motors. Show me.”
With clipboard in hand and a trade
evaluation form attached, start by having
the customer read the mileage on his or her
vehicle. Record it on the form. No words
from you, but you may want to do the wince
and flinch (a very effective tool). Also, ask
him or her to activate the hood release while
they’re in position. Proceed to the front
of the vehicle and lift the hood. Record
any oil leaks, over spray, or worn belts
(Silence, touch and feel). Proceed to the
front bumper, touch any scratches, dents,
cracked headlights, etc., and record them.
Move to the passenger side, recording tire
wear (at this point, you may want to use the
“penny-tire wear gauge”). Hold a penny so
you can slip it between the tread. If you can
see the top of Abe Lincoln’s head, the tire
wear is beyond the point where it will pass
state inspection. Touch every dent, scratch,
or defect and record them. At this point, wait
for stories on how each dent happened.
Move to the back of the car and at this
point, ask for the keys. Open the trunk,
hatchback, etc. Check for the spare tire jack,
look for any fluid bottles, i.e., brake fluid,
transmission fluid, oil, etc. Pick up each
bottle, hold it close to your ear and shake it,
looking for half full containers. Move to the
driver’s side, also recording any defects, and
get in and ask your customer to do the same.
Go over the interior thoroughly, checking
for wear and tear, cleanliness, etc. Record
side glass and windshield condition.
While in the driver’s seat, start the vehicle
and turn on every piece of equipment and
18
Silence is Golden
test all accessories, i.e., windshield wipers,
radio, heater, air conditioning, power seats,
all power windows, etc. Record all defects.
Next, drive the car with the customer and
check for any mechanical problems. Helpful
hint: Always ask the customer, “What is
that noise?” The customer will always
respond with an explanation. Make one
quick trip around the block. Once back at
the dealership, park the trade-in as close as
possible to the vehicle they are buying. This
is a great opportunity to show the difference
“
between old and new.
This whole
process takes
less than 15 to
20 minutes and
produces huge
returns. It also has
a positive effect
on yours and the
”
dealership’s CSI
scores.
Then, bring the customer inside and sit him
or her down in the negotiation area. This
is the point where we ask them some key
questions:
• Do you have the title?
• Is this a salvaged title?
• Is the title free and clear?
• Lien holder – pay off?
• Has the vehicle ever had any
collision damage? If yes, what type
of damage and what was the cost of
the repairs?
• Has the vehicle had any mechanical
repairs? If yes, what type of repairs?
• Was the vehicle purchased new?
• Has the vehicle ever been smoked
in?
• Has it been used for towing?
• What is the date of the last tune-up?
• What was the date of the last oil
change?
• Has the oil been changed every
4,000 miles?
• Do you have all the required
maintenance history?
successful solutions at www.autosuccess.biz
AnthonyHall
• How many miles on the current
tires?
• Is this car equipped with a spare tire
and a jack?
• Does the car have an environmental
protection package?
• Do you have both sets of keys and
the key fobs?
“And if you had to rate you car, Mr. or
Ms. customer, on a scale of one to 10, with
10 being absolutely perfect, showroom
condition, how would you rate your car?”
Most people respond between six and eight.
Where would it rate on the scale?
In consideration of this rating, the buyer has
three prices in mind for their trade-in:
1. Asking price.
2. Liking price.
3. Taking price.
Through this process, the sales person
can bring the customer from an asking
price, which always equates to a huge
over-allowance based on actual cash value
of the trade, all the way to a taking price.
The difference can be as much as $1,000
to $2,000. This is the difference between
a little or no gross to a much more fair and
reasonable gross. It has the ability to take
a lot of the confrontation out of negotiation
when it is time to present trade figures.
A customer’s perception can be summed up
this way: I’m going to pay this much for the
car I’m buying. I am going to get this much
for my trade-in; all I have got to do is pay
the difference.
It is the sales person’s job to increase the
perceived value of the car they are buying.
(Walk-around, November article) and
respectfully decrease the perceived value of
their trade-in. This is where the gross and
your commission are.
This whole process takes less than 15 to
20 minutes and produces huge returns. It
also has a positive effect on yours and the
dealership’s CSI scores.
Good Selling!
Anthony Hall is a training consultant
at Ziegler Supersystems. He can be
contacted at 800.610.9047, or by e-mail at
ahall@autosuccess.biz.
sts ms ls fis lr
sales and training solution
How to Identify and Sell to
the Entrepreneur Personality
If you could connect
with your prospective
buyer, would it help
get the sale? Would
you want to know
how to specifically
sell a customer who is outspoken and
demanding? What if you could create and
pique genuine interest in a shopper who
seems unmotivated? Have you ever made
a sale when a prospect said he or she was
just looking?
This article is the first in a three-part
series dealing with how different buyer
personalities respond to various sales
presentations. You’ll learn how to read your
prospect, detect subtle buying cues, and
tailor your presentation to trigger a positive
response from even your most challenging
customers.
Part 1: How to identify and sell to the
Entrepreneur personality
Part 2: How to identify and sell to the
Technician personality
Part 3: Will the Accommodator
personality ever, in your lifetime,
actually buy a car?
Entrepreneur personalities will usually be
talkative and fast-paced. They’ll also be
friendly. True entrepreneurs like to make
their own decisions, and they may seem
to have a very clear idea of which vehicles
they do, and do not, want to buy. In terms
of dollars and cents, do not hesitate to
negotiate with them.
Some entrepreneurs might seem a little
demanding, but they can also soften those
demands when they want to, by putting
their excellent social skills to good use.
They might make some small talk, establish
easy rapport, so their own business
objectives can be more readily attained.
They are typically confident, assertive and
fast-paced individuals. You will probably
not find an entrepreneur personality asking
for a lot of help, putting himself/herself
down or waiting long for an answer to a
question. If you notice that your customer
seems self-sufficient, confident, talkative,
quick and very proactive, you are probably
dealing with an entrepreneur personality.
Entrepreneurs are leaders. They instinctively
january 2005
CarolMartin
take the upper hand in situations and have
an innate ability to convince others to see
things their way. Outwitting, outdoing, or
overpowering them can prove to be a tall
task, as they usually have good answers for
everything and are not the least bit afraid to
speak up. They are win-driven, competitive
and determined to stay in control of
situations. They will probably relate well
to you if you seem equally enterprising and
self-assured; they respect and appreciate
your competitive drive.
While all entrepreneur personalities share
the same general characteristics and
display overall behavioral patterns that are
similar, it’s important to know that there
are different levels of each defining trait.
Some entrepreneurs have exceedingly
strong and determined personalities. These
entrepreneurs can be charming, but they
can also be outwardly bold and impatient.
If your customer seems highly aggressive
and antsy, be prepared to be a little less
forceful when talking business, so as to
avoid bumping heads and thus triggering
an unwelcome and, perhaps, deal-breaking,
confrontation. Consider these strategies
when working with an entrepreneur:
• End your sales pitch with a sentence
like: “Of course, it’s up to you whether
you want to take advantage of this
special, because you have to make that
decision”
• Make his or her ideas seem like
your own. For example, point out an
obviously positive feature about the
vehicle, something with which the
prospect is sure to agree. Once he or
she does, get him or her to elaborate on
it and then say something like: “You’re
exactly right! I never thought of it that
way.”
Virtually all entrepreneurs can identify with
people who are driven to win. Talk about
your own successes; if you met or exceeded
your goal last month, work that into the
conversation.
Carol Martin is a senior consultant
with The Omnia Group. She can be
contacted at 800.601.3216, or by e-mail at
cmartin@autosuccess.biz.
19
sts ms ls fis lr
marketing solution ScottJoseph

Discover How to Eliminate Your

Dealership’s ‘TrafÞc in the Door’ Challenges
I ask dealers and
general managers
all the time, “What
is your biggest
challenge in selling
cars today?” Almost
always their answer is “traffic.” The more
I study the challenge of generating more
traffic and staying ahead in competitive
times, the more I am convinced it boils
down to one principle – marketing. As
we start 2005, now’s the time for you to
tune up your marketing – to make sure
you’re getting new customers coming in,
old customers coming back and customers
purchasing more often.
Marketing is the main spring of every
business. After all, marketing is the science
of getting people to come in and test drive
your cars and have them try your parts and
service departments. It persuades them to
come back again and again and induces
them to purchase at higher grosses when
businesses, is one of the least understood
and most underutilized facets of business
today.
In these competitive times, the importance
of marketing is even greater than before.
Why? In this wildly unpredictable and
changing marketplace, dealerships must
have an edge or they will not survive
– they’ll lose their share of market to their
competitors.
The simple fundamentals of marketing – the
obvious marketing techniques that make a
lot of money – are the most powerful. After
all, you can do all sorts of advertising, but
if you ignore the basics, the money just will
not come easily.
Does your dealership(s) have an actual
marketing plan? There are only three ways
to grow your business; 1) sell to more
customers, 2) increase your gross average
and 3) increase how often customers spend
training, which leads to better
customer education.
• Track all advertisements and
measure the ROI. Know exactly
what is working and, more
importantly, what is not.
2. Increase customer retention by:
• Communicating frequently with
customers.
• Provide compelling reasons as to
why they should come back in
and buy another vehicle with
special offers before they are
announced to the general public.
3. Increase closing rate by:
• Increase the sales skills with
training.
• Develop an advertising strategy
that allows your sales staff the
opportunity to qualify the wants
and needs of customers up front.
• Offer great deals for the customer.

“
they do come back. money with you. What is your growth
strategy to accomplish these goals?
Maximize A real marketing growth strategy
incorporates advertising, sales and your
• Educate customers by giving
“reasons why” they should buy
from you.
To increase your gross averages, focus on:

the potential corporate identity. Maximize the potential

of the marketing plan by working backward
• Use direct response ads that
attract buyers who negotiate less (it

of the – start from sales. For any marketing plan

to work the advertising element must align
can be done).
• Increase the sales skills.

marketing with the way your dealership sells cars. The

class war between marketing and sales is a
• Managers start every deal.
• Use direct response ads that

plan by primary reason for program failure. There

are direct response advertising strategies
increase the percentage of people
who talk numbers (once again, it can

working
that can help support your sales team – even be done).
make them better.

backwards
To increase how often customers spend
To increase sales, focus on the following: money with you, focus on:

”
– start from
1. Increasing your phone traffic, new • Use direct response techniques
and used floor traffic, parts and service to create compelling reasons

sales.
business by:
Marketing is not just advertising.
It incorporates sales, advertising, your
business identity and a host of other
ingredients that are less obvious. Without
marketing, you lose customers. And
without customers, you lose business.
Marketing can make the difference between
the life and death of your dealership. Yet,
marketing, which is the prime mover of
• Aggressively marketing products
and services by using direct
response advertising rather than the
normal institutional advertising.
• Run special sales events.
• Develop a unique selling
proposition and a corporate
identity. This identity must be
recognizable in all communications
and convey your unique selling
proposition.
• Increase the perceived value of
the product through better sales
why customers should come in
and buy another vehicle from you
right now.
• Run special events such
as “clearance and new model
introduction” events, and so on.
• Special offers for sales.
• Monthly parts and service
offers to induce frequency.
Scott Joseph is the president of J&L
Marketing Inc. He can be contacted
at 866.429.6846, or by e-mail at
sjoseph@autosuccess.biz.

20 www.autosuccess.biz
 Service Manager Uncovers $10,500
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Finding & Keeping Hidden
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Sam Lilly, Fixed Operations Director
Royal Chevrolet, Lynchburg, VA
Net ProÞts in Your Service
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fs feature solution
2005 eDealers of the Year
Our January issue is dedicated to honoring
the Top 10 eDealers of 2005. The
benchmark for consideration for winning
this year’s award is results as measured
by volume of Internet sales and by how
well the dealers use the Internet and digital
marketing to promote all of their profit
centers: new, used, F&I, service, parts, etc.
Our goal was to seek out the dealers who
are the best at using this marketing medium
to generate huge increases in profit for their
dealerships. We considered the number of
rooftops, the size of the dealership or dealer
group, their markets, the brands they carry
and their Internet profits as a percentage
of their total profits. Here’s the detailed
criteria used to select the winners:
• Profit generated as a result of
Internet marketing
• New and used vehicle sales volume
as a result of Internet marketing
• F&I and subprime profits as a result
of Internet marketing
• Online service and parts business
2005 eDealers
Congratulations, eDealer of the of
Year the Year
Award Winners!
Dealership Location
Paragon Honda & Acura New York, NY
Dick Hannah New York, NY
Ralph Schomp Automotive New York, NY
Tasca Automotive Group Providence, RI
Herb Chambers Boston, MA
Red McCombs San Antonio, CA
Earnhardt Auto Centers Tempe, AZ
Courtesy Chevrolet Phoenix, AZ
Dave Smith Motors Kellogg, ID
Sheehy Virginia/DC
We learned a lot about what determines
a dealer’s success with using the Web to
generate increased sales and service profits.
We found some commonalities among
the winners and some truly effective best
practices that have propelled the winners to
22
the forefront of digital marketing, enabling
them to sell 50 to 800 units every single
month. Successful dealers recognize and
appreciate the fact that 70 percent to 80
percent of all customers who purchase a
new or used vehicle use the Web at some
point in the buying process. Some dealers
have even scrapped their conventional
advertising budget and dropped their cost
per sale from $300+ to less than $150
per sale. In recognition of these and other
outstanding achievements, we devote this
article to recognizing the Top 10 eDealers
of 2005 and we will share some of the best
practices that have positioned them at the
top in their field.
Internet Strategy & Vision:
We found that commitment starts with
the dealer principle himself and cascades
throughout the rest of the organization
in direct proportion to dealer’s level of
commitment. For the award winners,
the vision doesn’t start with the General
Manager or the Internet Director or
Website
www.ParagonCars.com
www.DickHannah.com
www.Schomp.com
wwwTasca.com
www.HerbChambers.com
www.RedMcCombs.com
www.Earnhardt.com
www.HouseofCourtesy.com
www.DaveSmithMotors.com
www.Sheehy.com
another member of the leadership team;
for the winners, commitment to an Internet
strategy and vision begins with the
dealer himself. A common mistake some
dealerships make is to dedicate or hire a
technology person and leave it to him or her
PatrickLuck
to establish an Internet marketing strategy.
This person typically winds up spending
a lot of time updating and maintaining a
nice-looking, information rich site that is
largely ineffective and when taken to the
extreme, these are the dealers who abandon
the Internet entirely. In contrast, our Top 10
dealers tell us about personal involvement
in selecting the right vendors and defining
an Internet sales strategy and vision with
their entire leadership teams. Some of the
areas dealers consider when establishing
their strategy and vision are: technology,
marketing, process, people, pricing and
measurement.
Establishing Your Strategy & Vision by
Seeking to Answer 10 Questions:
Technology: How do we separate the hype
from what works? What vendors deliver
a clear return on investment and what
technology can successfully automate parts
of the process?
Marketing: What are some best practices
for using the Web and digital marketing to
attract more customers to the dealership?
What is the best use of my advertising
budget and how much should be devoted to
digital marketing?
Process: How can a dealer fine-tune
his process to ensure that more of his
opportunities are being transformed into
profitable sales?
People: What are the secrets to lowering
employee turnover? What are some best
practices for recruiting, hiring and training
the right team?
Pricing: When, where and how do the
most successful dealers address pricing
on the Internet? What will work for my
store and what are some best practices for
maintaining a fair profit?
www.autosuccess.biz

Measurement: What are the key metrics for
measuring performance success?
Great Web sites:
What makes them great? Appearance is
subjective, and when it comes to design
what appeals to one person can repel
another, which is why we selected our Top
10 eDealers based on results. This is why
we define the 10 Greatest Web sites as those
that generate measurable results. You can
refer to the screen shots of these Web sites to
go online and experience them for yourself
where you’ll find one commonality; they
are simple and easy to use. The dealers
told us that common feedback from their
customers (and this can be true for any
online transaction) is that navigation has
to be simple and obvious. There’s not a lot
of extraneous information on these sites
where 90 percent of the space is devoted
to what the customer is looking for, which
is to research product information, to find a
particular vehicle in inventory or to access
service information.
Dealers also tell us that a Web site will get
results if it is simple, easy to use, quick to
load and highly engaging with multi-media
technology that can work fast even on a
low-speed connection. Great Web sites
offer cool features like online coupons,
specials, virtual test drives, online credit
applications, online trade appraisals and
a full range of pricing information. Since
the majority of new and used car buyers
purchase a model other than what they
originally select, a great site will offer
an alternative if you don’t have the exact
vehicle a customer has inquired about,
never telling the customer you don’t have
what they want. Great Web sites do much
more than post information online, they
compel the customers to pick up the phone,
submit a lead or drive straight to your
showroom.
5 Keys to a Great Automotive Web site:
Key #1: Simple and easy to use, fast to
load
Key #2: Provide what the customer wants
Key #3: Incorporate high-tech, engaging,
multi-media technology that works fast on
a low-speed connection
Key #4: Automatic updating (inventory,
specials, pricing, etc.)
Key #5: Devote 90 percent of the space to
january 2005
www.ParagonCars.com
what customers look for 90 percent of the
time
Marketing:
How can you get the greatest return on
your advertising dollar?
www.DickHannah.com
Traffic is the secret to success in the car
business, whether you’re talking parts
sales, service absorption, F&I profit, new
car sales, used car sales or the Internet. In
today’s super competitive market, it’s not
as simple as building a great Web site and www.Schomp.com
selling a ton of cars; you need to let your
customers know how to find you. Many
dealers start by making sure that all their
employees are familiar with their site and
by tagging all conventional advertising
with their Web address. The award-winning www.Tasca.com
dealers make it their business to capitalize
on the opportunities afforded by digital
marketing. They buy the right URLs and
they use organic search engine optimization
and even pay-per-click optimization to
www.HerbChambers.com
ensure the customer arrives at their site
instead of at the competition. Successful
eDealers create alliances with regional
and local sites that direct customers to
their website via banners and links because
they know that compared to the cost of www.RedMcCombs.com
conventional advertising, online marketing
delivers more customers for less money.
Visit the local newspapers for many of our
Top 10 eDealers, go to the car section and
you’re likely to find a banner ad whenever
you research a make that dealer sells. This www.Earnhardt.com
can generate lots of incremental traffic for
the dealership.
Another frequently used and highly
effective online marketing strategy
www.HouseofCourtesy.com
employed by our Top 10 eDealers is direct
e-mail marketing, because dealers can
reach hundreds or thousands of customers
with just a few clicks and a couple of
minutes for less than the cost of a stamp.
Dealers tell us this works best if you have www.DaveSmithMotors.com
established a database of e-mails and if you
have access to multi-media e-mails that use
the latest in compressed animation. Bob
Tasca III from Tasca Automotive tells us
that, “Our customers are always telling us
about how much they love our buzzmails www.Sheehy.com
because it’s like watching a mini-movie
about the product. It’s unlike anything else
out there so it gets their attention. What
I love is that everything is measurable,
continued on next page
23
continued
including the view rate, so we can measure
how effective we are at reaching our target
market. If FMCC comes out with an
Explorer incentive, I can send a buzzmail to
everyone who has been in on an Explorer, I
can select just our lease renewal customers
who are currently in an Explorer or even
folks who were in for service. There’s no
limit to how I can target my campaigns.”
Tasca is one among many of our Top 10
eDealers who spoke highly about “virtual
test drive” technology that sends customers
a mini-movie of a walk around presentation
straight to the customer’s inbox without
requiring the customer to open an
attachment. Regardless of their chosen
vendor, the size of their organization
and the franchises they carry, the Top 10
eDealers all spoke about the importance
of a clearly defined marketing strategy for
driving more customers to their Web sites.
Process:
The key is implementation and automation.
As with success in marketing, success with
your process begins by clearly defining
what needs to happen, how it needs to
happen, who will be responsible and how
they will be held accountable. We learned
from the Top 10 eDealers that it’s important
for the dealer and the leadership team to
create a detailed action plan for Internet lead
management and sales. Thinking through
the tactical details can remove some of the
barriers to process implementation while
automation can reduce the margin of error
and free up your people to spend more time
doing what they do best; set appointments
and sell cars. Here are the best practices we
gleaned from our interviews:
Top 10 Process Best Practices:
1. Fast, professional response increases
appointment ratio and ultimately sales.
2. Customizable e-mail templates for
every scenario (price, trade, payments,
availability, etc.) increase the speed and
professionalism of your response.
3. First e-mail should set the stage for a
phone call.
4. PHONE SKILLS, PHONE SKILLS,
PHONE SKILLS!
5. First goal is to sell the appointment, not
the car.
6. Use a script for all inbound and outbound
calls.
7. Confirmation calls made by the manager
will double the show ratio.
8. Use an appointment board that is highly
24
visible to create excitement and top-of-
mind awareness.
9. Use automation wisely to stay in touch
with prospects who don’t set appointments,
don’t show or don’t close.
10. Management needs to stay involved
and create a sense of passion for the
process.
People:
“Find the right team and create an
environment that they’ll never want to
leave.”
Robert Revere of Courtesy Chevrolet
made this comment at the Best Practices
Summit in Las Vegas, demonstrating how
passionate he is about hiring, training and
retaining the right people. Our top eDealers
tell us that if you have the right people who
are passionate about what they do you can
make up for a multitude of shortcomings
in other areas. That’s great, but what
can a dealer do to find the right people
and combat the auto industry’s biggest
challenge - turnover? Whether you’ve built
your Internet sales model around an Internet
Department or a centralized Customer
Relationship Center/Business Development
Center, the top dealers tell us that you need
to seek out people who are passionate about
customer service and can shine on the
phone. They also tell us you don’t need a
team of technology experts, because with
the right Web site and CRM tool you will
not spend much time resolving technology
issues or maintaining your Web site. Nor
do you need people who have proven to be
super successful on the sales floor as those
team members will often attempt to sell the
car (rather than the appointment) over the
phone and usually suffer from “Attention to
Detail Deficiency.” Since the main goal for
team members within the most successful
Internet departments and CRCs is to sell the
appointment and make sure the customer
shows up, it helps to seek out people who
love working on the phone in the field of
customer service.
Pricing:
How to stay competitive while protecting
your fair proÞt.
Pricing was the one area in which we
noticed incredible tactical variance among
the top eDealers. We found best practices
that ranged from 1. invoice, MSRP and
dealer price offered online 2. contact the
dealer for a quote and 3. no price quoted
online, in an e-mail or even on the phone.
When it comes to price it would appear that
there is no magic bullet or proven formula
for success as each dealer’s pricing strategy
was different. However one common
practice for every one of our dealers is
that the leadership team at the successful
dealerships got together to consider each
pricing model, evaluate the potential pros
and cons and created a pricing strategy
that was uniquely their own. By analyzing
each model to establish their own pricing
strategy, the Top eDealers told us that every
member of the team believed in and felt
confident about the strategy as a result.
Once again, we discovered that nothing
sells cars like belief in the value of what
you have to offer.
Measurement:
Tracking your performance results.
The best part about Internet marketing
is that everything is measurable. Some
technology providers will even automate
the reports you need to take a few minutes
a week to get a great snapshot of how
things are going, who is excelling and
where your process needs fine-tuning. The
most important numbers to track are the
following:
• Number of visitors to your Web site
• Conversion ratio
• Closing Ratio
• Average gross profit
• Cost per sale by lead source
including your Web site and third
party lead providers
Again, Congratulations!
Congratulations to the Top 10 eDealers
and thank you for sharing your insight on
what it takes to use the Internet to sell more
cars. If you have any questions regarding
any of the best practices described in
this article, please feel free to visit the
dealers’ Web sites or send an e-mail to
pluck01@autosuccess.biz and be sure
to read next month’s cover story where
we’ll publish our interviews with the Top
eDealers of 2005.
Patrick Luck is the editor and publisher
of AutoSuccess Magazine. He can be
contacted at 866.432.8276, or by e-mail at
pluck01@autosuccess.biz.
www.autosuccess.biz
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sales and training solution
Management Driven Dealerships
Question: Joe, what
do you mean by
Market Vs.
Management Driven?
The average dealership is finding it much
tougher to compete in today’s market. As an
industry, we’ve always been challenged to
stay on the “value building” path in “Sales”.
After 9/11 when the rebates hit hard and
fast and never let up, a lot more dealerships
made the transition to price–focused selling
instead of value–focused selling and by
doing so, gave up their opportunity of
consistent growth in sales and profits.
Does it matter? Dr. Edwards Deming
talks about what happens when quality
declines and we’re seeing it happen now.
Even as every manufacturer is focused
on reducing the number of problems per
vehicle and CSI is high, the quality of the
buying experience is dropping. Rebates
have always come and gone ... this time
they didn’t. Extended rebates equal higher
costs, so manufacturers and dealers take
their eye off the goal: a quality product and
experience. They focus on expenses and
try to save their way to a profit, instead of
focusing on building more value and selling
their way to a profit. When your focus turns
to saving instead of quality, you begin
a process that erodes your sales, profits,
customer base and long-term growth.
Why? Because you have three types of
customers: Loyal – Satisfied – Unsatisfied.
• Loyal Customers keep you in business.
They may ask about price, but in the end,
they buy YOU and the value experience.
That’s why sales people who tell us they
doubled their sales said they did it by
slowing down, staying off price, building
more rapport and focusing more on building
the value of their product and dealership.
Loyal Customers are the least expensive to
get and keep, they buy more, refer friends,
and produce higher revenues.
26
• Satisfied Customers are more price
focused, and if you don’t convert them
to value buyers, they’ll turn on a dime
for a cheaper price down the street next
time around. If your goal is just good
CSI instead of Loyalty, you’ll lose most
satisfied customers.
• Unsatisfied Customers = no more sales.
Note: More are dissatisfied with the buying
experience than the price.
Can you give me an example of Market vs.
Management Driven?
Market: If you’ve ever had a boat, been
in the middle of the ocean and lost your
electronics, your steering and your engines,
you’ve experienced what it’s like to be
Market Driven. You don’t know where you
are, have virtually no control, don’t know
what to expect next and you drift with the
winds and current. You are definitely on the
“hope plan”.
Market Driven vs. Management Driven
Market Driven Dealership
• 30 percent of sales to repeat, ref.,
internal & outside prospects
• 70 percent of sales to walk-in and
from advertising
• Huge ad budgets / high cost per
sale (CPS)
• Constant turnover of sales
people
• Untrained management / no or
poor teamwork
• Price Advertising, Presenting &
Closing
• Below average sales people: 10-
11 units or less
• Mgmt. blames market, sales and
customers for low sales
• Stagnant annual unit and profit
growth
JoeVerde
Management: With even a 50¢ compass, a
torn map, one sputtering engine and loose
steering, you’ll know where you are and
can start heading where you want to go.
Nothing about “hope” – you have a plan, a
direction, some control and momentum.
We’re at a crossroads in today’s market, and
your dealership’s future depends on whether
you choose to be Market or Management
Driven. Becoming Management Driven
is tougher because you have to think,
plan and take action every single day as a
Management Team to consistently move
forward. With Management you have
control - with Market you have to hope for
good luck.
Don’t just “hope” – plan – and have your
best year ever – every year!
Joe Verde is the president of the Joe
Verde Group. He can be contacted
at 866.802.5455, or by email at
jverde@autosuccess.biz, or visit
www.joeverde.com.
Management Driven Dealership
• 70 percent of sales to repeat,
ref., internal & outside prospects
• 30 percent of sales to walk in and
from advertising
• Low ad $ / focus: internal bus.
dev. / low CPS
• Virtually no turnover of sales
people
• Well trained, effective
management team
• Value advertising, presenting and
closing
• Professionals in sales: 12 units or
more
• Mgmt. tracks, trains and
manages for sales increases
• Consistent unit and profit growth
every year
www.autosuccess.biz
 BEST
PRACTICES

SUMMIT
E V E N T S U R V E Y R E S U LT S
The Venetian
Hotel & Resort
Las Vegas, NV

on a scale of 1 to 10

Topics Covered:
8.4
Quality & Credibility of
Presenters: 8.25
Would You Come Back:
8.8
Location:
9.4
Overall Experience:
8.5
We asked attendees what will
make the next Summit better:
Small group breakouts, more time to ask questions.
Great job putting this Summit together!
General Manager, Toyota, Milwaukee, WI

Very worthwhile, overall outstanding. If we make money

with the ideas, we will be back!
President, Honda/Toyota, Seattle, WA
Coming May
2005 Las Vegas, NV
On whatever the topic, use real life dealer speakers as BEST
you did in this Summit to add real world practices and
successes. PRACTICES
General Manager, Ford/Acura/Nissan, Ellicott City, MD

I think this was great. There were several different

ideas represented in the sales and marketing
SUMMIT II
Stop by booth #6055
departments which gave us a lot of ideas on how to for registration and
grow our dealership. Thanks for all your work preparing more details.
the Summit. It was great meeting all of you.
Internet Manager, Chrysler Jeep Dodge, Dayton, OH 800.901.3062
Stop by, sign up and get a free subscription
sts ms ls fis lr
RobertRevere
marketing solution

Courtesy Chevrolet’s Four

Keys to Selling 380 Additional Units
Master the four keys
to more Internet
sales and the sky’s
the limit. I say this
because at Courtesy
Chevrolet we went
from selling 45 units through our e-
Commerce Department to 75, then 150, 275
and now 380. Our success can be credited
to getting it right in four areas: Traffic to
our Web site (we’ve experienced a 800
percent increase in the past two years), the
right Web site that is capable of converting
a high percentage of those visitors into
way to generate traffic was to focus our
marketing efforts on boosting the traffic to
our site in order to drive sales growth. Our
first step was an obvious one; we bought
all the Web site names and elected to tag
all of our conventional advertising with
www.HouseOfCourtesy.com but the bulk
of that 800 percent increase in traffic can be
attributed to search engine optimization and
e-mail marketing.
People don’t use yellow pages anymore,
they use search engines, and search engine
optimization is the best way to ensure
and convert a higher percentage of our
unique visitors into leads. What excites us
most is that everything is measurable and
we know that if we continue to increase our
quality leads we will continue to sell more
vehicles. That’s our most important metric.
People
I don’t care how great your Web site is, if
you throw a lot of traffic at people who lack
the skills, training and aptitude to handle
Internet and phone leads, you will only
succeed in irritating your customers. We
send all our phone and Internet leads to a

“
leads, people and process. that your Web site appears at the top of a dedicated team of people who operate our
list. We are able to track that we get top Customer Relationship Center or CRC.
positioning and loads of traffic to our site. We have found that it is imperative to find

... if you throw

But our best results come from multi-media
e-mail marketing campaigns. I can target
a lot of trafÞc my audience, send thousands of messages
and measure the results. Our campaigns
at people who are specifically designed to include a call
lack the skills, to action that links customers back into
our site, which in turn pulls them into the
training and buying process and sets them on the path to
people who love the phone and shine on the
phone because in reality, an Internet lead
is just a phone up on steroids. We work
hard to find people who match our CRC
Specialist profile, love working in customer
relations and we work daily to ensure that
every member of our team is a blackbelt
on the phone and a master at bringing in

aptitude to
scheduling an appointment. We have found customers.
that e-mail marketing has all of the benefits
handle Internet of direct mail but it’s free, easier to measure
and faster to send.
Process
Assuming you have the traffic, the Web site
and phone for converting the traffic into leads and a
leads, you will A Web site that can convert trafÞc into
leads
team of superstars, your process will make
or break you. When we went live with our
only succeed in

”
Our site converts as high as 21 percent system, we took the time to clearly define

irritating your
customers.
TrafÞc
Whether we’re talking showroom visitors,
phone leads or Internet leads, the fastest
way to increase sales is to increase traffic,
and that doesn’t happen by waiting for the
“Up Bus.” Anyone in our dealership will
tell you that I am not a “computer guy”
and I’d even be a whole lot happier if e-
mail would just go away. So I was very
surprised when we launched our virtual
dealership and found that our new Web
site was actually generating increased
phone traffic and showroom opportunities.
This is technology I can use. After
measuring the results for a few months,
we took a look at how much money we
were spending on newspaper and radio
and decided that the most cost-effective
of our visitors into leads by devoting 90
percent of the space to what customers
are looking for 90 percent of the time. We
learned that our old site hurt our business
because it was difficult to navigate and
frequently qualified prospective customers
out of stock by failing to offer a similar or
alternative vehicle if the exact one was not
currently in inventory. When a site shows
customers that we don’t have what you’re
looking for they will immediately eliminate
you from their shopping process.
Our Web site not only resolves the challenge
of “No Car in Stock,” it automatically
sends a virtual test drive to the customer
on the vehicle they inquire about and links
them back into the Web site to take them
further down the road to the sale. All of
this includes multi-media animation that
can be viewed quickly even on a low-speed
connection and has proven to successfully
drive traffic, build value in our dealership
every step of the lead management process
to deliver a consistently professional
experience to 100 percent of our customers
100 percent of the time. In creating our
process we had to think through issues such
as how to handle pricing and what to do
when a customer inquires about his or her
trade value. If there’s one thing I’ve learned
in going from selling 45 vehicles to 380,
it’s that every member of the team needs
to understand and support the process 100
percent. Get your team involved, get its
input, hold it accountable and find a way to
generate passion and belief in your process,
and the sky’s the limit.
Robert Revere is the eCommerce
director at Courtesy Chevrolet. He can be
contacted at 866.873.0034, or by e-mail at
rrevere@autosuccess.biz.

28 www.autosuccess.biz
 EXPOSED
Auto Dealer Speaks Out and Reveals the Raw Truth about That “Consultant –Trainer,” Mark Tewart,
Who advertises in this Magazine All the Time.
This guy, Mark Tewart promises all sort of things to us car dealers – sales and management strategies for our dealerships that he “promises”
really pay off. Such as strategies that will increase sales without increasing your advertising. Ways to increase gross proÞt by $200 a car minimum. How
to reduce and eliminate water in used cars and so on. Every time I read one of his ads, I thought, “Who could be dumb enough to fall for this guy’s rap?”
Now, I’m going to tell you the raw truth about this guy and his ‘success secrets.’

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

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

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

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

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

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

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

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

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

Chad Hawkes, Hawkes Motors, Pryor, OK.

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

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

888 2 TEWART 283.9278

sts ms ls fis lr
TonyDupaquier
f&i solution

The Importance and

BeneÞts of a Credit Application
One of the main the products sold in the business office, service for an additional fee.
functions of a credit and attempting a conversion without an

application is to guard
the financial interests
of the dealership.
Unless the customer
pays for vehicle using cash, actual cash
and not checks, the dealership becomes a
lender. As a lender, the dealership has the
right to pull a customer’s credit.
“
application is near impossible. The credit application is also the customer’s
story to the lender. With the advent of
services like CreditNet, many dealerships
The credit application have gone to a five liner instead of using
is no longer an a full credit application. This short app
does not provide enough information when
optional piece of speaking to a lender of a credit-challenged
paperwork in the customer. Even though many lenders use

How is the dealership a lender? If the

dealership; it has credit scores to determine loan approvals
or tiers, the information gathered with a
customer writes a check, it will take a few become mandatory for credit application becomes invaluable in
days for that check to clear and for the each and every deal, your next create-a-deal meeting. The credit
money to be transferred into the dealership’s application can show stability and the
account. Therefore the dealership is lending and its importance ability to repay a loan.
the customer money until the check clears. and advantages must
The same goes for drafting from a bank or be conveyed to the According to the Fair Credit Reporting

credit union. The loan may be only for a day
or two, but there is still a risk involved for
the dealership. In your next meeting, have
the business manager show and explain this
to the entire sales staff and desk managers.
One of the biggest challenges business
offices face is the lack of credit applications
on customers who go to their own bank
or credit union or for those who pay via
check. Without a credit application, it
becomes very difficult to conduct a proper
customer interview. Without an interview
it is impossible to create the need for
”
appropriate dealership
personnel.
A credit bureau on every customer will soon
be a legal requirement. As a provision of the
Patriot Act, dealerships will be required to
run all customers though a national security
database called the Customer Identification
Program (CIP). Dealerships must do this
for every customer. A dealership can do
this or enlist a secondary company to do
it. Many credit bureau companies offer this
Act, which went into effect in September
of 1997, a dealership is not required to
acquire a signature to run a credit bureau.
All the customer must do is make an overt
act toward purchasing an automobile. It
is considered to be an overt act when a
customer has settled on a specific vehicle
and is engaged in discussion regarding the
sales price or payment options in a business
environment. A business environment
would be a sales person’s office,
business office or any location within the
dealership where deals are discussed and
consummated.

A casual discussion between the customer

and the sales person while walking on the
lot or a customer wanting to take a test
drive of a vehicle does not constitute an
overt act.

It is a requirement of the credit bureau

companies and many of the lenders, that
dealerships have customer authorization to
run a credit bureau.

The credit application is no longer

an optional piece of paperwork in the
dealership; it has become mandatory for
each and every deal, and its importance
and advantages must be conveyed to the
appropriate dealership personnel.

Tony Dupaquier is the director of

F&I training for American Financial &
Automotive Services Inc. He can be
contacted at 866.856.6754, or by e-mail at
tdupaquier@autosuccess.biz.

30 www.autosuccess.biz
sts ms ls fis lr
JosephSchmoke
sales and training solution

Across the Board Increase

in Service and Parts Revenue
Place emphasis on they can’t be loyal and not satisfied.
retraining service
managers and A professional walk-around will result in
service advisors in additional labor and parts sales on a monthly
a more customer- basis. This additional revenue comes from
friendly approach. items that customers may normally do or
This retraining and continued education is buy elsewhere, such as wheel alignment,
resulting in dealerships numbers going from batteries, wipers, tires, mud flaps and light
35 percent to 56 percent increases in labor bulbs.
and part sales in only a few months.
Culture change in the service department
has resulted in across-the-board increases
in service and parts revenue for dealerships
that have embraced and applied this proven
approach to serving customers.
Joseph Schmoke is the president and
founder of University Consultants LLC. He
can be contacted at 800.901.3058, or by
e-mail at jschmoke@autosuccess.biz.

Six or eight days of training seldom imbeds

new habits. Dealerships experiencing
success with new methods find that training
and education must be ongoing to be
effective.

To affect culture change in a dealership, the

dealer-principal and the general manager
appreciate that customer patterns have
changed. Customers expect to be treated
well, and have trouble-free automobiles.
Customers in for service, cannot be simply
written up and routinely sent to the waiting
room. Customers must now be shown
a higher level of service while building
assurance that the dealership is the place to
bring their vehicle for all things automotive.

The components of culture change in a

dealership’s service department are easy to
master, which creates customers-for-life. The
first step is the appointment process. When
the customer calls and the appointment is
set, a file is prepared and reviewed the day
prior to the appointment. In it is detailed
information on the customer and the vehicle’s
history, along with recall information, if any,
and recommended service intervals. A call is
made to confirm the appointment and prep
the customer for anything they need to bring
with them. When the customer arrives for
his or her appointment, the service advisor
greets him or her with a smile and a cheery,
“Good morning, Mrs. Smith, we’ve been
expecting you.” Customers react positively
to being greeted by name by someone who’s
been expecting them.

The next step is the walk-around, which

entails walking around the car with the
customer, pointing out the condition of the
tires, opening the hood and checking the
fluids right in front of them. The walk-around
serves more than one purpose. The most
important goal it accomplishes is to create
a friendly relationship between the service
advisor and the customer. A large amount of
trust can be built to ensure customer loyalty.
Customers can be satisfied and not loyal, but

january 2005 31
sts ms ls fis lr
sales and training solution
Franchised dealership
service departments
have experienced
increased competition
from independent
repair facilities and
quick-lube centers over the past several
years. A startling statistic shows nearly 70
percent of new car buyers choose service
facilities other than the selling dealership
during their ownership cycle. Capturing
this business is critical to the dealership,
both in service department revenue and
customer retention.
Dealers have attempted to address customer
perceptions that competitive facilities
are more convenient and less expensive
by offering express-lane service for
maintenance items and posting their pricing
in the service department. Many have also
extended their service department hours,
offering more evening hours and, in some
cases, weekend hours.
Dealerships can be proactive and devise a
system to re-capture these customers. Some
recommendations include:
1. Regularly reinforce to the entire staff
the importance of retaining customers in
service.
2. Establish a process and hold key people
accountable to ensure the service department
is presented fully to each customer at the
time of delivery of his or her vehicle. At
that point, the sales person should:
• Communicate that all dealership
associates are aware the customer has many
choices for purchasing and servicing their
vehicles and emphasize the dealership’s
commitment to earn the customer’s business
in both sales and service.
• Introduce the service manager and/or
service advisors.
• Discuss the dealership’s highly trained
technicians and explain they are specialists
for the particular vehicles the dealer is
selling.
• Discuss the dealership’s investment in
specialized tools and equipment to enable
it to properly maintain and repair today’s
vehicles.
• Review the normal maintenance required
to keep the factory warranty in effect and
explain the dealership maintains all service
records.
• Schedule the customer’s first service
appointment, thus beginning the customer’s
relationship with the service department.
32
Huge Dividends in
Happy, Loyal Customers
3. Provide a tool that offers ease and
convenience for those customers who prefer
to use the Internet to schedule real-time, on-
line, confirmed service appointments. The
use of such a tool:
• Increases customer loyalty.
• Increases customer satisfaction.
• Increases customer frequency.
• Increases customer retention.
• Increases service department efficiency.
• Increases service department revenue.
• Saves time on in-bound telephone calls.
• Drives traffic to the dealer’s Web site.
Along with the competition, another factor
in reduction of service department business
is the change in manufacturer-recommended
maintenance schedules. The three months,
3,000-mile oil change is a thing of the
past. Manufacturers are recommending
maintenance services at 5,000 miles, 7,500
miles or even more extended intervals.
These factors reducing the number
of vehicles coming across the service
drive make it imperative for the service
department to maximize the revenue from
those customers they do see. As always,
only necessary services should be sold. You
never want the service department to gain
a reputation of recommending unnecessary
services.
The initial contact with the customer
when he or she enters the service drive
is of utmost importance. This is where
the service department relationship can
be established and nurtured. Be certain
the customer is greeted promptly and
pleasantly. Make sure someone is available
to greet every customer as he or she enters
the service drive. Complete attention needs
to be directed toward each customer in for
service. How good does it feel when you
arrive at a place of business and you are
greeted by name?
Continually train your service advisors
in sales and customer service techniques
so they are prepared in advance for each
customer as he or she enters the service
drive. This includes reviewing all service
history on the vehicle, confirming all
necessary parts are available, researching
vehicle recall status and planning to offer
services for which the vehicle is due that the
customer had not requested when making
the appointment. The most effective
approach is to take time to discuss the
KarenDillon
recommended services with the customer,
explain his or her vehicle is due for such
service, what the service entails and how
it benefits them. This open communication
creates trust which results in increased
profits, CSI and customer loyalty and the
frequency with which they spend money at
your store.
An example of the right way and wrong way
to sell additional services:
(Wrong Way) You haven’t had your tires
rotated for over 9,000 miles. Should be
done every 6,000 miles. Want us to do
that?
(Right Way) The last tire rotation performed
on your vehicle was at 30,000 miles. The
manufacturer recommends tires be rotated
every 6,000 miles. This is an inexpensive
way to reduce tire wear and extend the life
of your tires. We could do that today in
conjunction with your other services for
only $_______. Wouldn’t you like for us to
complete this service for you as well?
The first impression is very important, and
just as important, is the last impression.
When the customer comes in to pick up his
or her vehicle, again reinforce the fact the
dealership values his or her business. This
is certainly communicated by the attitude
of each dealership employee, along with
either a vacuumed, washed car, a coupon
for a free car wash or a coupon for the next
scheduled maintenance. An effective and
inexpensive idea is a note from the service
manager thanking them for their business.
These can be printed in advance, attached to
each repair order and, in case the customer
has any questions or concerns, provide
either the service manager or customer
relationship manager’s contact information.
Spend the time and effort necessary to be
certain everyone in your service department,
whether it be the service manager, service
advisors, cashier and anyone else who has
contact with the customer, either in person
or via telephone, appreciates the importance
of each and every customer being treated as
a “Very Important Person.” This will pay
huge dividends in happy, loyal customers;
repeat business and additional revenue in
your service, parts and sales departments.
Karen Dillon is the president of
TimeHighway.com. She can be contacted
at 800.901.3170, or by e-mail at
kdillon@autosuccess.biz.
www.autosuccess.biz
 Subscriptions for $1a Day!
NIADA Member subscription rate only $368 year. Nonmember subscription rate only $468 year.
Endless hours of education for franchise and independent dealers, sales people, auction executives and vendors.

Sample Programming
EDUCATIONAL PROGRAMMING M “Your Dealership Service Contract Program: Keeping it a Profit Center”
M “How To Sell A Car And Keep It Sold Part 1 - Noncompliant Paperwork: M “Proper Use of Starter Interrupt Devices in a Motor Vehicle Transaction”
The Greatest Area of Legal Exposure in a Dealership”
M “Warranty Issues in a Motor Vehicle Transaction: Back to the Basics”
M “How To Sell A Car And Keep It Sold Part 2 - Commencing the
Customer Relationship” SPECIAL FEATURES
M “IRS Bank Secrecy Act and Form 8300” M 2004 NIADA Leadership Awards
M “Vehicle Remarketing: Auctions and the Dealer” M 2004 NIADA Quality Dealer Awards
M Preview “How To Break A Car Deal” M Legal, Legislative, Regulatory Affairs Forum
M “Standardized Dealer Accounting Part 1 - Standardized M Being Uncommon
Accounting and the Financial Statement”
M Discover From Within
M “Information Technologies and the Auto Dealer”
M Manheim Drive Center
M “The Garage Liability Insurance Crisis”
M National Remarketing Conference
M “How To Attract Lenders To Your Dealership”
M “Incoming Call Part 1 - Putting More Fun Back Into NEWS
Your Business (What the Receptionist Should Be Saying)” M “Driving Business” (Monthly Industry News With Michael York)
Featuring Brad Todd the President of AFC (Automotive Finance Group)
M “How to Best Serve the Hispanic Customer”
M “Legal, Legislative, Regulatory Review” (Monthly Review with Keith
M “Complying With The FTC Used Car Rule” Whann)
M “How to Establish and Operate a Related Finance Company” M “The Power of Association” (Monthly Association News Update with
M “Steps to a Motor Vehicle Sale: A Review of the Forms Michael Linn)
Involved in a Motor Vehicle Transaction” M “Fuel For Thought” (Monthly Dealer Operations Insight with D.J. Harrington)
M Certified Master Dealer (CMD) Program Preview
M How To Break A Car Deal (Q & A Session) INDUSTRY SPOTLIGHT
M ADESA Vehicle Donation Ceremony
M “How To Sell A Car And Keep It Sold Part 3 - The Customer’s Test Drive”
M 2004 Expo Vendor Highlights
M “How To Sell A Car And Keep It Sold Part 4 - Privacy, The Patriot Act
and Your Dealership” M 2004 NIADA Convention Highlights: Behind the Scenes
M “How To Sell A Car And Keep It Sold Part 5 - The FTC Used Car Rule M NIADA At The Columbus Fair Auto Auction
(Buyers Guide) and Related Warranty Issues” M 2004 NABD Highlights
M “Incoming Call Part 2 - Watch Which Ear and Words You Use” M Dealer Education Opportunities
M “Standardized Dealer Accounting Part 2 - Internal Controls in M The Car Counselor (with Keith Whann)
the Dealership”

For advertising opportunities, contact NIADA at 800.682.3837.

sts ms ls fis lr
marketing solution
Sophisticated e-Newsletters Create
Interest, Detect and Qualify Buy Signals
Smiles, discussions of
terms, holding hands
with the spouse, etc.,
are buy signals sales
people pick up on as
customers progress
toward buying. A customer walking
into your showroom is the ultimate buy
signal. What if you could determine if
your customers are sending you buy
signals before they ever set foot on your
showroom floor?
Well-written e-newsletters are powerful
customer retention tools, keeping
dealerships top of mind between showroom
visits. They deliver even greater value by
driving customer interest in new products
and promotions and then helping dealers
to detect and act upon buy signals arising
from the customer’s interaction with the
e-newsletter.
Content creates interest and action
E-newsletters are marketing tools
that help you create and then elevate
customer interest levels. The first step is
to add content that pushes customers and
prospects to take action.
For example, you can run factory or
dealership offers to help convert shoppers
into more of a buying mode. Certain time-
driven offers can boost interest even more
by creating a higher level of urgency.
Good examples are limited-time financing
promotions or early lease termination.
When a reader engages with this content,
he or she is in effect sending a buy signal.
The next step is to capture, measure, and
act upon it.
Detecting buy signals
The right content is necessary for creating
and elevating interest, and it becomes
more valuable when you can tell which
readers are engaged and what is their level
of interest.
There is e-newsletter tracking available
that shows how recipients interact with
articles and offers. It can tell whether
or not a recipient reads an article and
how far he or she drills down into it. It
can also tell you if a customer reviews a
promotional offer once or multiple times.
Taking it to the next level, you can embed
a “shadow form” (an offer-specific inquiry
34
form between the e-newsletter and your
dealership’s Web site) at the end of an
article, in a promotional offer or both.
When the reader clicks on it, the form
pops up and provides an opportunity to
request more information about the topic
or offer. E-newsletter services can track
this behavior and provide a detailed lead
report showing you who in your subscriber
base is ready for a response from your sales
team or business development center.
Qualifying the level of interest
Not only does content tracking monitor
who is interested, it helps dealers qualify
and prioritize prospects by the level of buy
signal. If a recipient reads the first few
paragraphs of an article but doesn’t click
through to the more detailed information
on a jump page, then he or she may be only
mildly interested and not really sending a
buy signal.
However, if a customer or prospect reads
an entire article, perhaps more than once,
or clicks through to a related promotional
offer, then he or she is sending a real buy
signal.
Recipients who read articles or promotions
then click through to your Web site or fill
out a shadow form, are sending very strong
buy signals and qualify as hot prospects.
Content tracking functionality not only
enables you to detect these different levels
of buy signals, it does so on a recipient-
by-recipient basis. Some e-newsletter
solutions provide e-mail addresses mapped
to a specific individual’s interaction with
content as part of a sales lead report. This
makes the tracking information easily and
instantly actionable.
Respond immediately
It’s important to have a systematic approach
to following up on buy signals generated
by content tracking reports. Identify who
on the sales force or marketing team owns
the responsibility and require immediate
follow-up. A prospect who is clicking
around your e-newsletter and Web site for
information can easily click to competitors’
sites, too. Keep them interested in what
your dealership has to offer.
Recipients who fill out a shadow form when
they click through a promotion, intend for
successful solutions at www.autosuccess.biz
DavidA.Fish
you to contact them. If they provide you
with a phone number, then you already
know what to do. If they don’t, respond
right away with an e-mail that compels
them to make a showroom appointment
before a promotion expires.
Assessing e-newsletter solutions
There are in-house software products,
turnkey e-newsletter services and ways to
integrate e-newsletter services with your
Web site, CRM and DMS systems. The
key is to make sure that the information
captured by the tracking is as actionable as
possible. Reports should be automatically
generated and easily interpreted. Ideally,
individual viewing behaviors should
be mapped to corresponding e-mail
addresses.
Gain advance knowledge
of customer preferences
Continuously fine-tune your e-newsletter,
with buy signal capabilities, to deliver more
valuable feedback. Your customers walk
into the showroom having done extensive
research on their vehicle purchase,
your dealership and perhaps even your
inventory. E-newsletter buy signal reports
give you advance knowledge about your
customers.
Example: You have several 30-year-old
customers who have previously purchased
coupes or sedans. Content tracking shows
they recently spent a lot of time reading an
article on mini-vans for growing families.
Now you have the advantage. You can
anticipate their needs and send an e-mail
promoting a mini-van offer just for new
parents — perhaps you offer a car seat to
customers who respond within a certain
timeframe. You’re now in a position to
have a trade-in, upsell and financing
strategy mapped out by the time the
customer comes in.
Information is power, in this case, selling
power. And you get this selling power by
extracting the most value out of your e-
newsletter — driving interest, detecting
buy signals, and then following up with an
offer your customer can’t refuse.
David A. Fish is chief executive ofÞcer
of IMN (iMakeNews Inc.) He can be
contacted at 800.871.0012, or by e-mail
at dÞsh@autosuccess.biz.
sts ms ls fis lr
sales and training solution
The Value of
a Professional T.O.
By making sure
your managers are
controlling the sales
process and taking
one last chance to
close the sale, you
will increase gross profit and sell more
units. Sales people must appreciate that
a professional T.O. is a step of the sale
not a sign that they have made a mistake.
Professional T.O.s increase closing ratios
and gross profit.
It is the sales person’s responsibility to give
the customer an effective meet and greet,
investigate the customer’s wants and needs,
build rapport and select a product. It is also
the sales person’s responsibility to provide
the customer a professioanl demonstration
and presentation and ask test closing
questions through out the sales process to
move the customer closer to the sale. The
T.O. can come in any part of the sale to help
move the process along or at the desk to aid
in closing the sale.
“
Fifty percent of
customers will
buy on the spot,
given a great
demonstration
”
and
presentation.
There are two basic types of T.O.s. The
early T.O. and the desk T.O.
The early T.O. should come early and often.
A focused desk manager should pay close
attention to the opportunity that is at the
dealership at all times. Many managers get
side tracked by daily activities and are not
focused on the most important event that
is happening in our dealerships right now.
That is the opportunity in the showroom.
By monitoring the showroom traffic, the
sales manager can watch for and identify
problems on the lot that can lead to a lack
of product demonstration. Remember, 99
percent of the customers that leave your
showroom without a demonstration drive
will not buy. When the sales manager sees
that a customer and the sales person are
january 2005
JimAdams
wandering through the inventory he or she
can approach the customer with a fly by
early T.O. The sales manager should briefly
introduce themself in a non confrontational
way and begin the process of asking
investigating questions that will lead to a
product demonstration.
Identify the customer’s wants and needs
and help the sales person move the
customer on to a demonstration. Remember
the key to the sale is a professional
product demonstration and presentation.
Fifty percent of customers will buy on
the spot, given a great demonstration and
presentation. Get the customer and the sales
person headed in the right direction and get
out of the way. It is important to remember
that the T.O. does not replace the process.
It is an effective way to move the process
along.
Depending on your sales process, the next
T.O. can move at different times. To ensure
the total effort with every opportunity,
every customer that is prepared to leave the
dealership without buying must be turned
over to management.
A professional T.O. is easy and non
confrontational. Sales person, “Before you
folks leave I would like to introduce you
to Jim Adams because he is our general
sales manager and in case I am not here
when you come back, I want you to know
someone else at the dealership.”
At this point the sales person will shut up
and let the manager clarify the objection,
isolate it, overcome and close the sale.
The manager may even send the sales
person on a mission. This means getting the
sales person out of the picture so that the
customer can speak freely without losing
face. The customer wants to buy the vehicle
or he or she would not be at the dealership.
Many times a second face will be all it takes
to close the sale. It is a powerful part of the
professional sales process.
A professional T.O. of every opportunity
that enters our showroom will increase
closing ratios and gross profit, which means
to you that your income will increase and
ultimately your quality of life too.
Jim Adams is the general sales manager
at Roper Kia in Joplin, MO. He can be
contacted at 800.905.0627, or by e-mail at
jadams@autosuccess.biz.
35
sts ms ls fis lr
sales and training solution
Have you made the
commitment that
automotive sales is
your career choice?
Unless you commit,
it’s impossible that
you will take the necessary steps to create
the business you desire. Long-term thinking
in addition to short-term goals are keys to
continued success.
When you first enter into a sales position,
80 percent of your time is spent acquiring
customers and 20 percent of your time
is spent maintaining those customers.
Eventually, with the right efforts, that model
should be reversed. Eighty percent of your
time should be spent maintaining your
customers and 20 percent to acquire new
customers.
You face a paradox of time management
in building your business. The paradox is
that you must work in the business and also
work on the business. When you are face-
to-face with customers you are working in
the business but no matter how busy you are,
you must find time each day to work on the
business, as well. Working on the business
includes marketing, prospecting, follow-up,
networking, delegating, automating etc.
Insurance sales people, real estate sales
people and sales people from many
industries continually think and act on
building their business. However, in the auto
industry the majority of sales people seem
addicted walk-in traffic. Eliminating this
addiction is the key to long-term success.
Lead Generation = Dollar Creation. Begin to
build multiple streams of leads by building
Would You Be Interested in a Program That
Pays for Itself Hundreds of Times Over?
Would you like a cost effective way to increase your referrals?
Want to dramatically increase service visits you lose to
Lube, Mufßer and Tire shops?
Up Service Visits by 13x a person.
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36
Building Your Business
a marketing web. List every way you
presently acquire leads such as walk-ins,
phone prospects, be-backs, referrals, repeat
customers. Then begin to list new ways
you could begin to acquire leads and how
you can strengthen or add to your existing
“
methods of generating leads.
Business cards
also need the sales
person’s Web site,
e-mail address
and slogan. Put a
call to action on
your cards for the
customer to come
”
see you, call you or
visit your Web site.
Do you presently have a software program
for following and managing your leads?
Not the dealerships program, your program?
Don’t trust anybody or anything to manage
your most important resource – your
customers.
Secondly, do you have a set follow up
strategy? How often will you follow up?
How will you follow up. What rewards
will you give, and what special offers will
you provide to bring them in for service?
That creates the Law of Familiarity and
Obligation leading to repeats and referrals.
E-mail follow-up and marketing is essential.
AUTO
C A S H C A R D S
MarkTewart
Automate your follow-up using technology.
E-mail, Autoresponder e-mail and Sequential
Autoresponder e-mail are all ways to follow-
up and add value that can be done while
you sleep or on vacation. Video e-mail
and personalization are keys to making a
connection, removing the impersonal nature
of e-mail and adding the wow factor.
All sales people need their own personal Web
site. The site should include sign-up forms
that collect e-mail addresses. The site should
be personalized with your picture, family
picture, your own personal story, rewards for
visiting the site and helpful information for
the customer. Your Web site should include
an audio introduction link.
Do your business cards look like 99 percent
of others sales people’s business cards?
Don’t use a picture of a car, use your picture
or caricature. Business cards also need the
sales person’s Web site, e-mail address and
slogan. Put a call to action on your cards for
the customer to come see you, call you or
visit your Web site.
Maximize traffic by creating a be-back CD.
Create a CD that you give each customer
who does not buy and invite them to play
it on the way home. The CD should include
information about you, your dealership and
product that would benefit the customer.
Include testimonials and a reward for the
customer if they come see you.
Create coupon swaps with businesses
around you. Visit a local restaurant and offer
to build their business on their worst traffic
day of the week for free. You can build their
business by creating a coupon with an offer
they approve and then pass these coupons
out at work from the cashier, receptionist,
and all departments to every customer who
enters your dealership. In return ask that
the restaurant pass out coupons from you
approved by the dealership with a special
offer to come see you.
Once you start the marketing web it will
grow and take on a life of its own. Building
a business first requires long-term thinking
and a commitment to the industry as a career.
When you commit, you have already created
a business, only its shape is unfinished.
Mark Tewart is the president of Tewart
Enterprises. He can be contacted
at 866.429.6844, or by e-mail at
mtewart@autosuccess.biz.
www.autosuccess.biz
sts ms ls fis lr
sales and training solution
Taking the Path of Least Resistance
Sales people are the
same wherever you
go, whether those
sales people are
here in the states or
elsewhere. While
recently working with a dealer group in
Puerto Rico to implement a menu system
for its F&I department, it quickly became
evident in speaking with the management
staff in both sales and F& I (obviously in
Spanish) that the issues they are dealing
with regarding their sales force, are the same
issues you face every day, complacency and
inconsistency.
In this respect, sales people are really the
same as all people: We become comfortable
with our situation. This is evident when you
begin to examine a sales person’s behavior
as it relates to his or her sales production
from month to month. If you were to chart
it on a line graph and provide the printout
for a cardiologist to examine, as though it
were an EKG read out of a patient, most
doctors would pronounce the patient (your
sales person) as either DEAD or at the least
critically ill! Why?
Because the graph would reflect the constant
peaks and valleys we all see from a sales
person’s production. One month they are
knocking down the pins as quickly as they
can be set up, selling 15, 18, 20 units or
more, only to find that the next month they
struggle to sell just 7 or 8 units or less.
So why does this occur? There are certainly
many opinions, but the explanation David
Sadler, founder of The Sadler Institute,
a sales training organization, provides is
particularly insightful. He commented that
the reason a sales person will rocket his or
her results one month only to subsequently
flounder the next, is due to that individual’s
self-image and defined personal worth. In
other words, sales people will only allow
their production (and income) to equal the
amount he or she feels worthy to receive.
Evidence of this is found when a sales
person sells enough vehicles to achieve a
monthly income well in excess of what he
or she actually needs to meet all of his or
her financial obligations. Jim Ziegler calls
this having the “Nut Mentality,” the idea
that once a sales person reaches that income
january 2005
KirkManzo
Human Nature:
comfort zone, the drive to continue is at best
reduced and at worst completely eliminated.
So as a concerned sales manager (meaning
you are concerned about keeping your job
since you are also paid and evaluated on the
collective sales results of the group) how do
you deal with this inherent limitation and
problem?
The best solution is that you must establish you are their cure
minimum standards of performance. Ask
yourself these questions. Can a bad sales
person (someone who sells very few cars)
still make a living at your dealership? Is there
someone working on your sales team that
has no business being at your dealership? Do
you keep a sales person around just because,
“well, he or she is a nice person, and besides
who will get the breakfast biscuits for us in
the morning?” Remember you are running
a business, it’s not personal, but if he or she
is going to continue to work for you, he or
she must perform to the standards you have
established to remain on the team.
Well then, what should be the minimum
amount? To begin implementing this process,
the minimum amount is less important when
compared to your willingness to do what is
necessary to give credibility to the program.
Meaning, if the minimum number is 8 units These kids and
per month (24 units over 90 days) when
millions more
someone sells only 23 units in 90 days will Mary Tyler Moore
you have the intestinal fortitude to eliminate International Chairman have Juvenile
that person from the staff? Diabetes, a disease that
threatens their lives every day.
On the first week of each month, sit down
with every sales person in private and None of them can outgrow it.
establish targets for income, units sold, But we’re closer than ever to
number of ups, demo drives and write ups.
a cure. Please, help us make
Review their actual numbers as compared
to their forecast numbers from the previous life-saving research possible.
month (this assumes you keep track of these Call 1.800.533.CURE or visit
vital stats). At each meeting, appoint ahead
for the next month’s review so you both www.jdrf.org.
place this event in your calendars. This will
ensure the consistency you need to give the
program the accountability and credibility
you want.
Good luck, and make something happen!
Kirk Manzo is the general manager
at Ziegler Supersystems. He can be
contacted at 800.858.6903, or by e-mail at
kmanzo@autosuccess.biz.
37
sts ms ls fis lr
sales and training solution
Today was a big
idea day for me.
Had one of those
lately? It started out
disguised as another
ordinary day … going over some numbers,
accounting, balancing, you know. Around
lunch it shifted to reading some computer
software (not exactly my strong suite), but
suddenly…BANG! A big idea shows up! I
mean an “out of the box so big it’s scary”
kind of an idea. We got excited. Ideas can
have that kind of affect on you. Especially
big ones.
When was your last big idea? Did you act
on it? Did you even recognize it as a big
idea, or just pass it off as a daydream?
Most of the big successes you and I read
and hear about and contribute to in today’s
marketplace started out as someone’s big
idea. And they acted on it! Not a passing
thought that sat quietly by and raised its
hand to be noticed as an idea … I’m talking
about an idea that cleared the room and
flipped over tables and chairs! An idea so
big that you could think of nothing but this
BIG IDEA!
COOL. I’m writing this to you, to remind
me to ACT! And to encourage you to do
the same. To move on your next big thing.
Today ended with an idea that could be like
that song that debuts at No.1 on the charts.
Or a book that ships as a best-seller. B-I-G
Big! A big idea that doesn’t just make you
smile, it makes you laugh out loud!
I’m sworn to secrecy in the here and now,
but I’m trusting that you’ll hear about it
one day. And I’m challenging you to act
on yours, so that I’ll hear about it one day.
Think. And then act. Give it a shot. Go for
it. Why not? The new year is here, why not
meet it with some new ideas? They may
seem small at first, but get you excited
about asking the “what if” question.
Not just resolutions (that are soon forgotten
and seldom acted upon), but a solid goal
38
I Think I’ll Have an Idea
or direction or idea that you’ll commit to
and begin to pursue. Get going and watch
the law of inertia get on your side and
propel you in the direction of completing,
competing or winning in whatever you’ve
chosen.
Commitment is stronger than motivation,
and new ideas require more than just an
occasional nod of “yeah, that’s a good idea.”
History confirms that all great ideas were
pursued by individuals with an unshakeable
commitment. From Tom Edison to Orville
and Wilbur Wright to Henry Ford to Walt
Disney to Bill Gates and on and on.
Most great ideas we see from the view of
completed or failed, more of the finished
product variety. That we can easily say, “Oh
sure, why didn’t I think of that one?” Or,
“Man, I can’t believe he thought that would
work.” At the finish line it’s easy to make
the call on winners and losers. But the real
courage is in the beginning. In the believing
and questioning. In the commitment to
pursue an idea.
“
In the beginning
of new
information
and new ideas,
capture now,
decide later. The
beginning is too
soon to decide
whether or not
your new idea is
just a daydream
”
or a whopper of a
great idea.
How can you make the world a better
place? Have an impact on your kids? Write
MichaelYork
a book? Grow a new business or provide a
solution or bring value to the marketplace?
How can you do your job better or
dramatically improve the way you sell your
products and services?
With what kind of “big idea” thinkers do
you associate? Or are you just hanging
around the whiners and complainers?
What’s the last book you read that inspired
you? (Or don’t you read for inspiration?)
Once a great idea appears, it’s time to take
action. All great ideas that we now know
about have one thing in common: someone
acted on them. In the beginning of new
information and new ideas, capture now,
decide later. The beginning is too soon to
decide whether or not your new idea is just
a daydream or a whopper of a great idea.
Capture it on paper. Give it some thought.
Nurture it. Water it. Give it a chance to
grow. Take some action in the direction of
your idea and see where it can lead.
One caveat though, don’t look for
confirmation from those around you on
your new big idea. Sometimes it’s tough
for even successful people to see your
vision as clearly as you, especially in the
beginning when it’s fresh. In the beginning
of some radical new “thing” the crowd is
seldom right. It takes visionary individuals
committed to making their ideas work.
Never stop asking “What if?”
Want a list that will help you get started? It’s
my list, but it might just help you in making
your list go to www.autosuccess.biz. and
click on the box that says: Michael York’s
BIG Idea List.
Michael York is an author and professional
speaker. He can be contacted at
800.668.5015, or by e-mail
at myork@autosuccess.biz, or visit
www.MichaelYork.com.
www.autosuccess.biz
 TOP 10
BEST OF THE BEST

Belinda Wortherspoon, NADA

Wolfington Group Call Center Operator 2005

THE BEST KEPT SECRET IN THE

AUTOMOTIVE INDUSTRY!
ASK YOUR 20 GROUP! toll free 800.331.9361

D’ELLA
G R O U P PONTIAC BUICK GMC CADILLAC CHEVROLET ISUZU LINCOLN MERCURY HONDA
www.dellaautogroup.com

Dear Harry:
Just thought I would drop you a note to tell you that the promotion was a terrific success. I have done many
promotions throughout the years, and the following impressed me:
1. Your people in charge were knowledgeable and were very structured.
2. The support staff were energetic, organized and had a lot of fun.
3. The majority of the customers were first time buyers at our store so the residual will benefit our
organization for years to come.
All in all, you delivered what you pitched. My staff is ready for round two!

SALES • SERVICE • PA R T S • LEASING • COLLISION CENTER

D’ELLA PONTIAC D’ELLA HONDA D’ELLA LINCOLN D’ELLA HONDA CHRISTOPHER CHEVROLET
BUICK GMC CADILLAC 313 Quaker Road MERCURY ISUZU 319 Cornelia Street BUICK PONTIAC
293 Quaker Road Queensbury, NY 12804 1011 Route 9 Plattsburgh, NY 12901 P.O. BOX 472, Upper Wicker St.
Queensbury, NY 12804 (518) 793-3811 Lake George Road (518) 563-7686 Ticonderoga, NY 12883
(518) 793-3871 (888) 47-HONDA Queensbury, NY 12804 (800) 564-6632 (518) 585-2842
(800) 462-1968 Fax: (518) 745-0248 (518) 743-1800 Fax: (518) 563-2263 (800) 336-0175
 TOP 10
BEST OF THE BEST
NADA
2005
 TOP 10
BEST OF THE BEST
NADA
2005
 TOP 10
BEST OF THE BEST
NADA
2005
 TOP 10
BEST OF THE BEST
NADA
2005

RedMcCombs.com HouseofCourtesy.com

Sheehy.com ParagonCars.com Tasca.com DickHannah.com

Earnhardt.com Schomp.com DaveSmithMotors.com HerbChambers.com

 SuccessStory
#1 PRE-OWNED INTERNET DEALER SHARES ALL
www.DickHannah.com is the #1 pre-owned internet dealer
ick Hannah in Portland,
Oregon uses a new digi-
tal marketing strategy to
sell hundreds of vehicles
a month and has become the biggest pre-
owned internet dealer in the US. They used
this new strategy to sell hundreds of vehi-
cles and this article will show you how they
did it. Joe Orr and Matt Dorsett from Dick
Hannah·s organization will answer ques-
tions to give us some insight into how they
became the #1 pre-owned internet dealer in
the world.
Why did you initially get involved with
the internet?
We realized that most of our customers
were using the web to research before they
bought their vehicle so we wanted to make
sure we marketed where most of our cus-
tomers were. We learned that 70%-80%
of our customers were starting their shop-
ping online and we wanted to take them
from the web to our dealership. So that·s
exactly what we did. First, we re-evaluated
our advertising budget and we realized that
we were spending more money than ever
before on mass marketing but our results
were not increasing as much as we wanted.
There are more television and radio stations
today, so it is harder to reach a large audi-
ence with out being on all or most of the
stations. In addition, the papers have con-
solidated so their prices are very high. Also,
the traffic they generate is not the most prof-
itable traffic we have because our ads are
right next to many other dealerships and the
primary focus is price which drives down
the average gross profit. The bottom line
is that we were spending more to get less
and we could not effectively measure our
return. It became clear that there had to be a
better way and the internet was the obvious
choice for targeted marketing. Shortly after
initiating our new internet marketing strat-
egy, we were spending a lot less money and
attracting a lot more business that we could
measure.
How did you set up your strategy and
your people?
The first thing we did was to get the right
people and that has been the key to our
success. We have an amazing team: Babak
Mohammadi is the GSM for our Kia store
and DickSaysYes.com and he also oversees
our Customer Relationship Center and Sub-
prime department. Angie Turja manages
the call center and 8 employees in the Cus-
tomer Relationship Center every day. Matt
Dorsett oversees all of our internet activ-
ity for the group and there are many other
people who are the reason we have been so
successful. Without great people we would
not have accomplished half of what we
have accomplished so far. Most recently
the department just added two more wom-
en onto the team who will handle Spanish
customers only. Dick Hannah·s Customer
Relationship Center handles all internet and
sub-prime leads and their primary goal is to
set appointments. “Our team does a won-
derful job following the process of selling
the appointment and our sales team then
sells the car” said Babak.
 Success Story
After getting your people in place what
did you do next?
We started by getting leads from a number
of 3rd party lead providers. This helped us
get started because we had enough leads
to keep our people productive right away.
We also used the leads from our website as
well. Immediately we learned that the best
leads came directly from the website but we
did not have enough of them. As a result,
we promoted our own website to increase
the number of high quality leads that had a
20-25% closing ratio. Today we are using
a blend of leads from our own website and
from a select group of 3rd party lead provid-
ers that give us leads that have a high clos-
ing ratio and a low cost per sale.
What lead providers do you use and
why?
We signed up with many lead providers but
there were some of them that gave us terrible
leads so their closing ratio was very low and
their cost per sale was too high. Therefore,
we only kept a few high quality lead provid-
ers like AutoTrader, Cars.com and Dealix.
Today our primary source of leads and sales
are now from our own website but the 3rd
party providers give us access to many buy-
ers who initially want to start with an objec-
tive 3rd party company. In addition, our lead
providers have a national presence and they
have exposure in places we do not. Our goal
is to leverage their exposure while we make
sure that our website is the dominant online
buying service in our region.
How did you set up your website?
We had some pretty good template websites
through Cobalt but they were not generat-
ing a lot of sales so we decided to get a new
website through a company called BZRe-
sults.com. BZ created our site and we used
their tools and training to establish ourselves
as the primary internet buying service for
our region. The key to our new website is
that it generates internet leads, phone traffic
and showroom traffic while promoting all of
our profit centers: New, Used, F&I, Service
& Parts.
What has made your website so suc-
cessful?
Our old website looked good but it didn·t
generate results. It was just an information
center and it did not do a good job creating
leads and traffic for the dealership. Our new
website is more like a marketing center and
it drives traffic and sales. The bottom line is
that it is a very important marketing tool and
thousands of prospects visit it every month
so we wanted to make sure it was the best
site in the market. Today, our website is our
primary source of leads and the closing ratio
for our website leads is 2 to 3 times higher
than any of our other leads we get. Also,
our site is very easy to use and it gives the
customer more information than our manu-
facturer site does. Lastly, our entire website
automatically updates itself so it does not
require a lot of our time or attention.
What do you have on your site that
is different from other dealers’ web-
sites?
First of all, our site is getting great results.
For every thousand people who visit our
website it converts 3 to 4 times more visitors
into leads compared to our old site. Most
technology companies who build websites
don·t understand the car business and they
build sites that may look good but they don·t
get results. Our site builds value in our deal-
ership over our competition and ultimately
generates more opportunities through the
internet, phone and showroom. Our old
site did many things that would actually
hurt our leads and opportunities because it
would qualify customers out of our inven-
tory and tell them that we did not have the
vehicle they were looking for. Our new site
never qualifies anyone out of stock because
we have a virtual inventory that allows the
customer to pick any car they want. In addi-
tion, customer·s can take a virtual test drive
on our site which gives them a multi-media
tour of the vehicle they are interested in.
These tours have sliding pictures, animation
and sound. The best part is that these multi-
“DickHannah.com has helped us sell hundreds of vehicles
a month and it is completely different from any other site
in the market.” Joe Orr, DickHannah.com
media tours stream on a low speed 56k con-
nection so 100% of our customers on a dial
up internet connection can view them.
Are there any other unique things that
customers can do on your website?
Customers can research product informa-
tion, read positive reviews, view compari-
sons, get Kelley blue book information and
much more. Also, when a customer is look-
ing for a pre-owned vehicle they can view
multiple pictures, print a brochure, view a
lemon check, send the vehicle to a friend
and they can even view a multi-media pre-
sentation that shows them what we do to
certify their pre-owned vehicle.
Do you use the web to help customers
get financed also?
We direct every customer who is interested in
a vehicle to complete a secured online credit
application. In addition, we have a special
finance department that sells over 150 cars a
month so we have a specific website for all
of our sub-prime customers. You can view
this site by visiting www.DickHannah.com
or by visiting www.DickSaysYes.com. Most
of our sub-prime leads come from the web
and it has been a critical part of our busi-
ness.
How about Service Online?
We have a virtual service and parts depart-
ment on our website where customers can
schedule an appointment, buy parts or simply
view our service menu. In addition, we have a
personal website for each of our customers on
our Virtual Dealership. The personal websites
are designed specifically for the customer and
it provides them with critical product infor-
mation including recalls, service reminders
and so on.
How do you manage all of the leads
your website generates?
We use a web-based customer management
system called “BuzzTrak” that helps us cap-
ture and control all of our prospects in one
data base. All of our leads from every source
are sent into one tool and it will automati-
cally source and distribute the right leads to
the right people based on their schedule. We
use the tool for our daily planner and it re-
minds us to do the things we need to do to be
productive. In addition, it automates many of
the activities we would otherwise need to do
manually. The best part of our tool is that it
automates the majority of our email processes
and prospect follow up which gives us more
time to focus on selling cars.
 Success Story
What is automated and why is it impor-
tant?
The automation ensures that the process is
done right all of the time and it solves the
problem of people not executing consistent-
ly. In addition, by automating most of the
follow up it allows us to handle more leads
per person which saves us a lot of money in
staffing.
Do you automate all of your email cam-
paigns?
No. We automate our initial response to cus-
tomer inquiries, prospect follow up for 4
months and ongoing follow up after the sale
including CSI, Service reminders, Birthdays,
Anniversaries, Renewals ect… However, we
have other types of campaigns as well. We
use Buzz Trak to send out a lot of permis-
sion based bulk email campaigns and direct
mail campaigns to drive more traffic. Our
system has hundreds of pre-packaged multi-
media buzzmails that we can send out to
customers with a click of a button. This is
an important part of our system because it
helps market our website and our dealership
without spending any additional money on
advertising. One important thing to note is
that you cannot do email campaigns without
a large email data base so we have a strategy
to gather and store our emails.
ple are doing and I can drill down to view the
details if I want. For example, it will show
the salespeople that gathered email address-
es and the ones that don·t.
How did you market your site?
Initially we added our website address to all
of our ads including print, direct mail and
others. Then we had a lot of success with
our email marketing campaigns. We send
out thousands of multi-media emails called
“buzzmails” to our database every month.
These emails are like little commercials that
stream over a low speed internet connection.
What is unique about these movie mails is
that their file size is compressed so they can
stream on a low speed internet connection
and our customers do not need to download
anything to view them. Most importantly,
they drive a lot of traffic to our site and to
our dealership. The best part is that we don·t
have to pay anything to send them and I can
send a campaign in a few seconds from any
computer that has internet access. We also do
a lot of online marketing so we can drive cus-
-DickHannah.com becomes the #1 Pre-Owned eDealer in the world.
-Dick Hannah put the right people in place and that was the key to their great results.
tomers from other sites to our sites. Search
engines are very important and our website
is optimized for all the major search engines
and key search phrases. Lastly, we have re-
lationships with many regional websites that
link customers to our site. Fortunately, our
marketing strategy has done an incredible
job in creating more traffic to our site and in
turn this has dramatically increased our leads
and sales.
What type of people do you staff your
department with?
We look for people with great sales, phone
and follow up skills. The key to our people·s
success is that they have been trained on the
process to sell the appointment rather than
trying to sell the car over the phone. In par-
ticular, our best people follow the phone
guide and they understand how to answer all
of the customer·s questions and objections.
The good part is that if they do a great job
selling the appointment the closing ratio of
showed appointments is very high.

How do you gather emails in the deal-

ership? -Dick Hannah shifted their advertising strategy to focus on the internet because 70-80% of their customers
There are many ways to gather emails. We start their shopping online.
began by gathering all of the emails we al-
ready had in our dealership management -Dick Hannah uses internet marketing to improve their sales and service profits and to reduce their advertising
system and lead management tools. Our
expense and cost per sale.
sales and service team also ask every cus-
tomer for their email address. The key to this
process is that they always ask the customer -Dick Hannah has dominated their market on the internet by setting up their own regional buying service at
for their email and attach a benefit to the www.DickHannah.com.
question. For example, the sales team asks
all of our prospects if they want us to send
-DickHannah.com, their website has won many awards.
them a “Free Virtual Test Drive.” The cus-
tomer always say yes and then gives us their
primary email. We also added the email field -Dick Hannah hired BZResults.com to set up their e-marketing system, websites, crm tools & training.
to all of our forms and we put merchandis-
ing around the dealership with posters that -Dick Hannah uses email marketing to attract new buyers because it is a very cheap advertising medium that
say “Do you want a FREE VIRTUAL TEST
gives them a high return.
DRIVE?” In service we have posters that
offer customers a “Free Personal Website”
and the cashier has small cards the custom- -Dick Hannah has trained their people on a successful process to improve their closing ratio and sales.
ers can fill out with their email. We measure
our email gathering process every day and I -Dick Hannah uses a customer management system to manage and measure all of their customer activity.
get an automated report every morning that
gives me an overview of all of our oppor-
tunities from the previous day including the -Dick Hannah uses their CRM tool to automate their email and follow up activity. This automation guarantees
type of prospect (showroom, phone, internet, that things get done and it allows the sales team to handle more leads per person.
etc.), the source, the status and more. I can
use this to get a global view of what my peo- -Dick Hannah have increased their sales and profits by expanding their strategy to target Hispanic buyers.
 Success Story
What is your Process for handling
leads?
We flow charted our sales process in our
initial training meeting. We have found that
when we stick to the process we get great
results. The most important part of the pro-
cess is the phone and our ability to sell the
appointment. All of our internet leads are
automatically imported into one tool that or-
ganizes them by source and distributes them
to the right people in the department. In ad-
dition, the tool automates the majority of
the email and follow up activity so our team
can spend more time on the phone setting
appointments. We have been able to almost
double our closing ratio by following up with
people and the majority of our follow up is us versus our competition. In addition, F&I
automated. I get a report every morning that and accessories are an important component
gives me an overview of all of the previous for internet sales because when it is handled
days opportunities on the showroom, phone properly the internet customers back end
and internet along with the status of where profit can exceed the back end profit of tra-
they are in the process and the key metrics I ditional showroom deals. In the end, our
need to focus on to improve our results. success de-
pends on how
How do you handle your pricing? well we build
Our average gross profit is usually similar value in our
to our showroom gross profit. The most im- dealership,
portant part of our pricing strategy is that people and
we try to sell the appointment and not the products and
price. When we do address the price we ask not just price.
for a fair profit and we also emphasize the
unique benefits they receive by buying from

“DickHannah.com has helped us sell hundreds of vehicles a month

and it is completely different from any other site in the market.”

OLD WAY
Customers began their shopping at the dealership

NEW WAY
Now Over 80% Start Shopping on the Net