dealer magazine proposed design 2014

Design Proposal for 2014

2

Dealer Communications is the leading multi-media information source for the automotive retail industry. Connecting with franchised automotive dealers and managers over ten million times per year.

Dealer Communications also hosts the industry leading bi-annual Digital Dealer Conference and Expositions.

Introduction

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Objective

To create 2014 issues of Dealer Communication Magazine with a fresh, new look and approach.

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Objective

STRENGTHS:

QR codes/LinksAuthor’s ProfileDealers AdsReadable text

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Objective WEAKNESSES:

Heavy contentNo Supporting images for the contentAuthor’s photoFeatured Dealer photosLogo & Cover Design FlexibilityQuote boxPlain LayoutNo Car / Automotive SectionFont

Proposed Designs

7

BEFORE AFTER

JOHN LEEOwnerLee Motors Co., Inc.

Page 26

YOUR EXPECTATIONS FOR 2014 WILL

DRIVE SUCCESS Doug Austin Page 23

THE SEVEN MOST IMPORTANT WORDS

IN CLOSING David Lewis Page 12

Kathi Kruse Page 37

10 THINGS TO STOP DOINGON FACEBOOK NOW

BEFORE IT’S TOO LATE

Ed Kovalchick Page 56

SMARTY PANTS PARTS PRICING

Vol. 20 No. 11NOVEMBER 2013

Vol. 20 No. 11NOVEMBER 2013

THE SEVEN MOST IMPORTANTWORDS IN CLOSING

David Lewis Page 12

YOUR EXPECTATIONS FOR 2014WILL DRIVE SUCCESS

Doug Austin Page 23

10 THINGS TO STOP DOINGON FACEBOOK NOW

BEFORE IT’S TOO LATE Kathi Kruse Page 37

SMARTY PANTS PARTS PRICING Ed Kovalchick Page 56

JOHN LEE OwnerLee Motors Co., Inc.

Page 26

COVER

n Used new set of font and color branding n Adjustment of background to focus more on the subject or featured dealer

8

BEFORE AFTER

n Used default color branding for each sectionn Emphasized page number

n New header and footer layoutn Moved the Publisher infos in Editorial Section

2 DEALER | NOVEMBER 2013 dealer-magazine.com

HONDA OF OCALAUp 13% in service, Honda of Ocala increases profitability within 2 months of new marketing strategy

See on Page 30

CONTENTS

LEADERSHIP

08 Your Role as a CatalystDave Anderson

ADVERTISING & MARKETING

10 First Impressions!Jim Boldebook

12The Seven Most ImportantWords in ClosingDavid Lewis

SALES

14The Three Things Salespeople Have to Know About Handling PriceJoe Verde

OWNERSHIP

17GM Dealers Get Ready for Your Quarterly Business Contact MeetingRichard Sox

19 Master The Interview ProcessSimon Jalbert

21 It’s the Management, Stupid!Loyd Rawls

23Your Expectations for 2014 Will Drive SuccessLoyd Rawls

3710 Things to Stop Doing on Facebook NOW Before It’s Too LateKathi Kruse

39Win the Ad Auction With AdExtension Bonus: Google’s latest tweaks means stronger position, lower cost for well-run campaignsTim McLain

41 Technology and Herding CatsSandi Jerome

42New Automation Technology Puts Your Customers Behind the WheelShawn Ryder

44Cost To Market Clarifiers: How The Metric Helps You Manage Used Vehicle ProfitabilityDale Pollak

FINANCE & INSURANCE

46F&I - Data Breach RisksMerit Your AttentionRobert Byerts

49Is Your Team Over Managed Or Under Led?Rick McCormick

FIXED OPERATIONS

51Processes and the Strength of your Fixed OperationsGregg Criss

54What is Your Higher Purpose, Your Noble Mission? - Part IICharlie Polston

56 Smarty Pants Parts PricingEd Kovalchick

COVER STORY

26 LEE MOTOR GROUPOwner

With $5,000 in his pocket, World War II veteran James Lee bought a small Ford dealership in Elm City, NC in 1953.

4 Dealer Dealer-magazine.comNOVEMBER 2013

HONDA OF OCALAUp 13% in service, Honda of Ocala increases profitability within 2 months of new marketing strategy

See on Page 30

Dealer magazine (ISSN 1537-6141) is published monthly by Dealer Communications, 8870 Darrow Road, Suite F-106, PMB 305, Twinsburg, OH 44087. Periodicals Postage Paid at Brentwood, TN and additional mailing offices. POSTMASTER: Please send address changes to: Dealer Magazine, P.O. Box 16770, St. Louis, MO 63105. Subscriptions are $48.00 per year, 12 issues per year, monthly. Back issues, $10.00 each. Make check payable to Horizon Communications. Send to: P.O. Box 16770 St. Louis, MO 63105. Reprint requests: [email protected]. POSTMASTER please send change of address to Dealer Magazine, P.O. Box 16770.

TABLE OF CONTENTS

COVER STORY JOHN LEE

OwnerLee Motors Co., Inc.

26

With $5,000 in his pocket, World War II veteran James Lee bought a small Ford dealership in Elm City, NC in 1953.

His son John, born six years later, would ride his bike after school to the small dealership that didn’t even have a showroom. He fell in love with the business at age six.

continued on page 26

LEADERSHIPYour Role as a CatalystDave Anderson

ADVERTISING & MARKETINGFirst Impressions! Jim Boldebook

SALESThe Seven Most ImportantWords in Closing David Lewis

The Three Things Salespeople Have to Know About Handling Price Joe Verde

OWNERSHIPGM Dealers Get Ready for Your Quarterly Business Contact Meeting Richard Sox

Master The Interview Process Simon Jalbert

It’s the Management, Stupid! Loyd H. Rawls

Your Expectations for 2014 Will Drive SuccessDoug Austin

37

39

41

42

44

46

54

56

49

51

08

10

12

14

17

19

21

23

10 Things to Stop Doing on Facebook NOW Before It’s Too LateKathi Kruse

Win the Ad Auction With AdExtension Bonus:Google’s latest tweaks means stronger position, lower cost for well-run campaignsTim McLain

Technology and Herding Cats Sandi Jerome

New Automation Technology PutsYour Customers Behind the WheelShawn Ryder

Cost To Market Clarifiers: How The Metric Helps You Manage Used Vehicle ProfitabilityDale Pollak

FINANCE & INSURANCEF&I - Data Breach RisksMerit Your AttentionRobert Byerts

Is Your Team Over Managed Or Under Led?Rick McCormick

FIXED OPERATIONSProcesses and the Strength ofyour Fixed OperationsGregg Criss

What is Your Higher Purpose, Your Noble Mission? - Part IICharlie Polston

Smarty Pants Parts PricingEd Kovalchick

TABLE OF CONTENTS

9

BEFORE AFTER

4 DEALER | NOVEMBER 2013 dealer-magazine.com

Dealer magazine (ISSN 1537-6141) is published monthly by Dealer Communications, 8870 Darrow Road, Suite F-106, PMB 305, Twinsburg, OH 44087. Periodicals Postage Paid at Brentwood, TN and additional mailing offices. POSTMASTER: Please send address changes to: Dealer Magazine, P.O. Box 16770, St. Louis, MO 63105. Subscriptions are $48.00 per year, 12 issues per year, monthly. Back issues, $10.00 each. Make check payable to Horizon Communications. Send to: P.O. Box 16770 St. Louis, MO 63105. Reprint requests: [email protected]. POSTMASTER please send change of address to Dealer Magazine, P.O. Box 16770.

I have come to a conclusion…there are two kinds of dealers. The following is for dealers who want to maximize their use of the Internet and technology to sell and service more vehicles more profitably. If you don’t fit that description, read no further, I can’t help you.

But if you do want to maximize your use of the Internet and technology to sell and service more vehicles more profitably, I can help you…like I’ve helped thousands of others. I’m not kidding…thousands.

I can help you and your managers solve your most pressing problems and issues regarding the Internet and technology. I will do this by sitting you and/or your managers down with a table of peers from similar sized operations so you can find out how others solved the problems you’re facing.

I can help you find out what the most progressive dealers are doing to stay ahead of the pack. I will do this by having them share their formulas for success with you.

I can help you learn from the top minds and thought leaders in the industry. I will do this by making 100 of them available to you, sharing their knowledge, experience and expertise.

I can help you see the future by having world-renown people from outside of the automotive industry share what they see is coming down the road.

I can help you see more new technologies, solutions, applications and services in one day than you could see in a month.

But I can only help you if you’re willing to help yourself.

So help me help you; as I help 1,000 other dealers and managers at…

The 15th Digital Dealer Conference & Exposition in Las Vegas October 15th-17th.

Some dealership groups bring 4, 10, 16…even as many as 22 people. What do they know that you don’t? What will they know after they’ve attended and you haven’t?

You’ve been reading this magazine for many years, the same quality of content you’ve been getting in Dealer magazine is what you can expect at Digital Dealer. So come out to Las Vegas with some of your managers and learn how to maximize using the Internet and technology to sell and service more vehicles more profitably.

And if you won’t help yourself…at least help your business by sending someone.

I guarantee it will be well worth it.

Mike Roscoe President, Dealer Communications Conference Chairman

NOVEMBER 2013PUBLISHER

MICHAEL [email protected]

COOJOSEPH DE PALMA

[email protected]

MEDIA DIRECTORERIN HAITHCOX

[email protected]

MAGAZINE MANAGERCEREN ISILDAK

[email protected]

GRAPHIC DESIGNERKRISTINA BRESSLER

PHOTOGRAPHERJEFFREY REEDY

CIRCULATION SUBSCRIPTIONRICH JARRETT314-432-7511

[email protected]

ADVERTISING [email protected]

Dealer magazine makes every attempt to ensure the accuracy of all published works. However it cannot be held responsible for opinions expressed or facts supplied herein. Nothing may be reproduced in whole or in part without written permission from the publisher. All rights reserved. The publisher encourages you to submit suggestions. Submitted materials become the property of Horizon Communications, Inc. and will not be returned. Send material for publication to 8870 Darrow Road, Suite F-106 / PMB 305, Twinsburg, OH 44087. The editor reserves the right to edit material; submission of material constitutes permission to edit and publish that material. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is presented with the understanding that the publisher is not engaged in rendering legal, accounting or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers.

PUBLICATION OF

EDITORIAL

Publisher’s Note

6 SEPTEMBER 2013Dealer Dealer-magazine.com66 SEPTEMBER 2013SEPTEMBER 2013DealerDealer Dealer-magazine.comDealer-magazine.com

SEPTEMBER 2013PUBLISHER

MICHAEL ROSCOE

CHIEF DIGITAL STRATEGISTJOSEPH DE PALMA

[email protected]

MEDIA MANAGERERIN HAITHCOX

[email protected]

PHOTOGRAPHERDONNA GREEN

CIRCULATION SUBSCRIPTIONRICH JARRETT314-432-7511

[email protected]

ADVERTISING [email protected]

Dealer magazine makes every attempt to ensure the accuracy of all published works. However it cannot be held responsible for opinions expressed or facts supplied herein. Nothing may be reproduced in whole or in part without written permission from the publisher. All rights reserved. The publisher encourages you to submit suggestions. Submitted materials become the property ofHorizon Communications, Inc. and will not be returned. Send material for publication to 8870 Darrow Road, Suite F-106 / PMB 305, Twinsburg, OH 44087. The editor reserves the right to edit material; submission of material constitutes permission to edit and publish that material. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is presented with the understanding that the publisher is not engaged in rendering legal, accountingor other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers.

A PUBLICATION OF

I have come to a conclusion…there are two kinds of dealers. The following is for dealers who want to maximize their use of the Internet and technology to sell and service more vehicles more pro� tably. If you don’t � t that description, read no

further, I can’t help you.

But if you do want to maximize your use of the Internet and technology to sell and service more vehicles more pro� tably, I can help you…like I’ve helped thousands of others. I’m not kidding…thousands.

I can help you and your managers solve your most pressing problems and issues regarding the Internet and technology. I will do this by sitting you and/or your managers down with a table of peers from similar sized operations so you can � nd out how others solved the problems you’re facing.

I can help you � nd out what the most progressive dealers are doing to stay ahead of the pack. I will do this by having them share their formulas for success with you.

I can help you learn from the top minds and thought leaders in the industry. I will do this by making 100 of them available to you, sharing their knowledge, experience and expertise.

I can help you see the future by having world- renown people from outside of the automotive industry share what they see is coming down the road.

I can help you see more new technologies, solutions, applications and services in one day than you could see in a month.

But I can only help you if you’re willing to help yourself.

So help me help you; as I help 1,000 other dealers and managers at…

The 15th Digital Dealer Conference & Exposition in Las Vegas October 15th-17th.

Some dealership groups bring 4, 10, 16…even as many as 22 people. What do they know that you don’t? What will they know after they’ve attended and you haven’t?

You’ve been reading this magazine for many years, the same quality of content you’ve been getting in Dealer magazine is what you can expect at Digital Dealer. So come out to Las Vegas with some of your managers and learn how to maximize using the Internet and technology to sell and service more vehicles more pro� tably.

And if you won’t help yourself…at least help your business by sending someone.

I guarantee it will be well worth it.

MICHAEL ROSCOEPresident, Dealer Communications

Conference Chairman

PUBLISHER’S NOTES

DMAG_SEPT_FINAL.indd 6 8/29/13 2:45 PM

EDITORIAL

n Applied new font style and layout n Minimalist approach that compliments the branding style

n New header and footer layoutn Moved the Publisher infos in this Section

10

BEFORE AFTER

NOVEMBER 2013 DealerDealer-magazine.com 41

Technology and Herding CatsSANDI JEROME

S upervising the accounting office was my least favorite tasks as a CFO/controller. I’d rather

create a new spreadsheet or write a report on our DMS system. I used the phrase “herding cats” to describe the difficulty involved in coordinating the efforts of so many office staff members with different personalities and skills levels. As my career progressed and I ended up supervising more and more offices and staff members - it became apparent that I would need to find a solution using technology to make this task easier. My goal was to produce a financial statement on the 3rd working day after deal cutoff (creating the 3-day close method) and I found this much harder with a larger office. Normally you would think that a bigger office staff (larger dealerships) would mean a faster close - but the need to coordinate their efforts became greater as the sales volume and staff size increased. When I supervised a small office, I could just look out at the billers desks and see how high the stack of deals was and go grab a few and post them. A larger office meant that I was having to roam around area where all the billers worked and count how many deals for each and try to balance to stacks to make it even and reach our deadline. There were way too many for even a Super Controller to post to get caught up. It was at this point that I came up with an idea - why can’t we flag deals for billers like we flag time for technicians? Imagine if your billers were fighting for the next deal to post - even going into the F&I and sales office asking for more deals? A backlog

of deals is the number one reason why it might be the 4th of the month and you don’t have a financial statement. Although getting the deals into the office earlier in the month is your best solution, I don’t think we’ll be able to influence the sales and F&I department enough to get them to turn in the deals faster. In fact, weekly sales commission cutoffs haven’t improved the flow because it is the managers who

control the flow of deals and they are paid monthly. Instead, weekly sales commissions have only made the close more difficult because the office is trying to pay a weekly commission payroll and close the month at the same time. In addition, it generates more payroll checks which causes higher bank fees and chargebacks. How can you start flagging the office for the deals they post? First you have to change from being an old-fashioned desk based accounting office to a task-based accounting office. You need to separate both your tasks and staff into 3 categories; CAT - confidential, accurate and timely, B-Better and A-Anyone. I’d love to have an office full of Cats - but normally only your office manager and the payroll clerk fall into that category. We’ll spend half at day at my Profit Academy in Las Vegas November 19-21st working on understanding how to

“Why can’t we flag deals for billers like we flag time

for technicians??”

separate tasks and your office staff into these categories. How long does it take to switch from a desk based office to a task-based office? For some it can be a matter of weeks, but for others with a seasoned staff - the change is difficult. The best place to start is when you are hiring your next office replacement. Instead of hiring to replace a desk - move some of the lower level items from other desks and hire a new A person. Move the important tasks to your B level staff that wants to grow into a “CAT.” There are many things that you can do to motivate your office; bonuses based on deals worked, a bonus for having a certain amount of B or higher tasks assigned - or my favorite which is 4 hours free time off if the close is completed in 3 days. Please email me if you’d like the 3 day close plan or a list of the accounting office tasks.

Sandi Jerome is a Former CFO, System Administrator and Fixed Operations Manager with over 30 years experience in the automotive and truck, and RV industry. She is the owner of Sandi Jerome Computer Consulting and can be reached at [email protected]

SCAN to COMMENT on this article

Or visit http://DLR.bz/201141For more articles, blogs and

daily news visit us at www.Dealer-magazine.com

DIGITAL DEALER

7 NOVEMBER 2013 | DEALERdealer-magazine.com

Technology and Herding Cats

S upervising the accounting office was my least favorite tasks as a CFO/controller. I’d

rather create a new spreadsheet or write a report on our DMS system. I used the phrase “herding cats” to describe the difficulty involved in coordinating the efforts of so many office staff members with different personalities and skills levels. As my career progressed and I ended up supervising more and more offices and staff members - it became apparent that I would need to find a solution using technology to make this task easier. My goal was to produce a financial statement on the 3rd working day after deal cutoff (creating the 3-day close method) and I found this much harder with a larger office. Normally you would think that a bigger office staff (larger dealerships) would mean a faster close - but the need to coordinate their efforts became greater as the sales volume and staff size increased. When I supervised a small office, I could just look out at the billers desks and see how high the stack of deals was and go grab a few and post them. A larger office meant that I was having to roam around area where all the billers worked and count how many deals for each and try to balance to stacks to make it even and reach our deadline. There were way too many for even a Super Controller to post to get caught up. It was at this point that I came up with an idea - why can’t we flag deals for billers like we flag time for technicians? Imagine if your billers were fighting for the next

deal to post - even going into the F&I and sales office asking for more deals? A backlog of deals is the number one reason why it might be the 4th of the month and you don’t have a financial statement. Although getting the deals into the office earlier in the month is your best solution, I don’t think we’ll be able to influence the sales and F&I department enough to get them to turn in the deals faster. In fact, weekly sales

“Why can’t we flag deals for billers like we flag time for technicians?”

love to have an office full of Cats - but normally only your office manager and the payroll clerk fall into that category. We’ll spend half at day at my Profit Academy in Las Vegas November 19-21st working on understanding how to separate tasks and your office staff into these categories. How long does it take to switch from a desk based office to a task-based office? For some it can be a matter of weeks, but for others with a seasoned staff - the change is difficult. The best place to start is when you are hiring your next office replacement. Instead of hiring to replace a desk - move some of the lower level items from other desks and hire a new A person. Move the important tasks to your B level staff that wants to grow into a “CAT.” There are many things that you can do to motivate your office; bonuses based on deals worked, a bonus for having a certain amount of B or higher tasks assigned - or my favorite which is 4 hours free time off if the close is completed in 3 days. Please email me if you’d like the 3 day close plan or a list of the accounting office tasks.

DIGITAL DEALER

commission cutoffs haven’t improved the flow because it is the managers who control the flow of deals and they are paid monthly. Instead, weekly sales commissions have only made the close more difficult because the office is trying to pay a weekly commission payroll and close the month at the same time. In addition, it generates more payroll checks which causes higher bank fees and chargebacks. How can you start flagging the office for the deals they post? First you have to change from being an old-fashioned desk based accounting office to a task-based accounting office. You need to separate both your tasks and staff into 3 categories; CAT - confidential, accurate and timely, B-Better and A-Anyone. I’d

Sandi Jerome is a Former CFO, System Administrator and Fixed Operations Manager with over 30 years experience in the automotive and truck, and RV industry. She is the owner of Sandi Jerome Computer Consulting and can be reached at [email protected]

SCAN to COMMENT on this article or visit http://DLR.bz/201107

For more articles, blogs and daily news visit us at

www.Dealer-magazine.com

SINGLE PAGE ARTICLE

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n New header and footer layoutn New layout for the title and author’s profile

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1514 NOVEMBER 2013 | DEALERDEALER | NOVEMBER 2013 dealer-magazine.comdealer-magazine.com

SALES

The Seven Most Important Words in Closing

David Lewis is the President of David Lewis & Associates, Inc. a National Training and Consulting Company that specializes in the Retail Automotive Industry. He is also the author of 3 industry related books, “The Secrets of Inspirational Selling,” “The LEADERSHIP Factor” and “Understanding Your Customer.” You can email David at dlewis@ dealer-communications.com

W hether you are a Salesperson or Sales Manager, your main goal is to close sales. Everything we do up to that point is all

just set-up and preparation, yet so many of us fail when it comes to this final step. In actuality, we fail approximately 75% of time. You may ask how I came up with that percentage. Well, the industry average closing ratio is 25%. This means if 25% percent of our Customers buy, and 75% do not, then we failed 75% of the time.

Closing is asking for the sale and can only be done once you have earned the right to do so. Why would you ever want to ask for the sale if all the value of your product has not been presented? Ironically, in our industry we teach some closing techniques that just do not make sense.

I cannot tell you how many times I have asked a class of automobile sales professionals what they say immediately after they have presented their Customer’s with the figures to buy the car and every time most will state that they say nothing. Saying nothing is not asking for the sale. It is opening the door to get responses that you do not want to hear. Responses such as, “Is that your best price,” “How much are you giving me for my trade” and the worst one of all, “Well let us go home and think about it.”

All three of those are comments you do not want to hear.

Some will even try to trick or confuse the Customer by stating, “And how would you like this to be titled?” That is not a closing question; that is an indirect form of pressure. Even worse, most people realize the intent of the question and become very turned off and defensive.

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Once you have presented the numbers, there is only one thing you want the Customer to say, and that is YES! Yes, we would like to buy the car.

So why not just come out and ask for the sale. Ask the Customer to buy the car. If you are the Salesperson and have professionally earned the right to do so, no one will be mad or insulted. If you are the Sales Manager and are coming in for the close and the Salesperson has made the proper presentation, most expect to be asked for the sale. So, why not just do it.

The seven most important words in closing are: “Would You Like to Buy the Car?”

It is a simple, non-pressure, direct question and one that is expected. The time has been invested making the presentation, effort set forth to prepare the figures, and now the time is right to simply ask the Customer, “Would you like to buy the car?”




That is it, seven easy words.

Do you know what is so exciting about these words? Some people will actually say YES.

Those of you who know me personally, have been to one of my classes, or are a regular viewer of my weekly Sales Meetings, know I do not make many promises. But in this case, I promise you, if you ask everyone from today forward after presenting numbers, “would you like to buy the car,” some will come right out and state YES.

And for those who do not, most will now respond with a reason as to why they are not ready to buy today and after successfully overcoming their objections, guess what your final statement will again be?

Would you like to buy the car?

We all know there is one thing we all forget to do some times, and that is ask for the sale. But if you develop the habit today of simply asking people, “would you like to buy the car,” and build it into your sales routine. You will never forget to do it.

Oh…. by the way, would you like to buy the car today is 8 words. So never state today, because today is one of those pressure words you want to try and stay away from.

Give it a try; I know you will like the results.

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First Impressions!

N o matter how slick your advertising is… the production value of your radio and TV,

the professionalism of print, the slick savvy of your digital. No matter how cute or clever or compelling your tag line or slogan, nothing impacts the perception of a shopper like the first things they hear, see, smell and touch at your dealership. I’m not an ‘advertising guy’, I’m a marketing guy. I founded one of the most successful automotive retail marketing agencies in America almost 30 years ago. And after three decades of working with some exceptional dealerships (and a few not-so exceptional) I can tell you that Advertising is a very small slice of the large Marketing pie of ‘conception to consumption.’ Every slice of that pie deeply affects the degree of success of the whole pie. None more than a customer’s first physical touch experience. And nothing, in my opinion, has more impact on your brand perception.

But it’s about a lot more than just what your customers see and here. For lack of better definition I call it the ‘energy’ of the dealership which is primarily drive by attitude and leadership. It’s not just one thing…it’s everything synergistically aligned that tells the customer “You’ve come to the right

place.” It has a lot to do with the ‘smile factor’. Countless research has demonstrated the power of a smile, a warm greeting, a sincere desire to make the customer feel genuinely important and appreciated.

Don, a Chevy dealer from the Midwest who I’ve known for the past 15 years, conducts frequent test drives of his dealership ‘attitude’ with friends. In exchange for dinner for two at one of the best restaurants in town, Don’s friends anonymously pay a visit to the dealership. In a one page questionnaire, they give their first impressions of display, lot and showroom (including bathroom) cleanliness, the greeting they receive, the comments they overhear in the showroom from customers and dealership personnel and finally a grade on the overall shopping experience. Four times a year Don meets with his leadership team to discuss the feedback. He never reveals the identity of his secret shoppers. Don, himself, will occasionally break from his routine schedule to do a quick walk-about with his team leaders throughout the entire dealership property. “I inspect what I expect” says Don. Music too loud in the showroom? Promo/price signs not in conformance with policy? Coffee maker empty or stale? Cigarette butts near the entrance? Don doesn’t point them out, he quietly asks the team leaders: “What ain’t right here?” “Great, let’s get it fixed and find out how we can keep it fixed.”

I learned the importance of this kind of critical self-scrutiny in the restaurant business in 1979 after a regular patron asked me if I was selling the restaurant or had I just lost interest? I asked her why she said that. She said she saw weeds growing up by the flower boxes on her way in. There were two bulbs not lit in the light fixture near her table and there was a trail of toilet paper outside the ladies room where it had apparently stuck to the foot of a customer. I asked this lady how her meal was. She said “Fine, the prime rib was great and the vegetables were exactly how she liked them.” After brooding over the critique for several days I wrote a letter to the lady with a $100 gift certificate in consideration of her facilities consultation. Our team of waiters, bus people and even the kitchen crew had a meeting in which we all grew new eyes, new ears, and a new sense of smell. Everyone agreed it was shameful that a loyal customer had to point out the obvious and everyone agreed that we, as a team, had a responsibility to make sure we didn’t look like we had lost interest or the business was for sale ever again. Almost immediately I started getting the feedback we needed to stay on top of our game. Replace menus that were soiled/dog eared. Windows need cleaning. Cobwebs on top of the hall hutch and clock. We got back on top of our game and it made a difference, not just to the customers but to pride of everyone on the team.

ADVERTISING AND MARKETING

Jim Boldebook is President of Creative Broadcast Concepts (CBC), an advertising/marketing agency working with some of America’s most successful dealerships. You can email Jim at [email protected]

It’s so easy to overlook the obvious when we get busy with our core business duties, but it’s the little things, the first impressions that set us apart from the crowd.

Several years ago I had rotator cuff surgery at an orthopedic surgery center in Maine. This facility, owned and operated by a group of exceptional surgeons, takes pride in every aspect of the operation. I was invited for a pre-surgical tour of the operating room, given an explanation of the exacting standards for cleanliness and safety precautions, met the surgical team, was given a thorough explanation of every single phase of the operation. When I arrived at 6am a few days later for the surgery, I was literally greeted at the door. I felt like royalty. It was the best medical procedure

of my life. Obviously I couldn’t watch once under the anesthesia, but I went ‘under’ with greater confidence from the first impressions.

I can’t tell you how many friends and relatives I’ve referred to this center over the years, but it’s a lot. You might call me an ambassador for this medical group.

Paying close attention to detail, constantly seeking to perfect the setting, orchestrating every aspect of your operation to maximize the value of the first impression is easily the best investment you’ll every make in honing your brand experience. It shouldn’t be a job description for one individual. It should something that is embedded like a chip into every single

team member through training and leadership.

Want a free list of questions that my friend Don gives to his friends to help him evaluate his dealership? Just send me an email.

Happy Thanksgiving to you, your family and your team!




“What you see… is what you get.”

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His son John, born six years later, would ride his bike after school to the small dealership that didn’t even have a showroom. He fell in love with the

business at age six.

In those early years, he cleaned toilets, swept floors, worked in the tobacco fields for the local farmers, while learning from his dad how to work hard and treat people right.

At age 20, while still in college, John found himself running the dealership after his dad died. At the time, the dealership had fewer than 25 employees and John had yet to sell his first car.

He and his wife, Lynn, have turned that small business into Lee Motor Group, which now has 10 dealerships in four states, including one of the top-selling Hyundai dealerships in the country. Seven of the stores were open points awarded to Lee Motor Group. With the addition of a corporate airplane and helicopter, John and his President, Tim Varnell, are able to visit and manage the stores on a timely basis.

Continuing a practice he began when he first took over the store, John still gives his personal phone number to every customer who buys from the dealerships in North Carolina.

He credits hard work, integrity and treating people right for the extraordinary success he’s experienced through the years.

LEEMOTORGROUPWith $5,000 in his pocket, World War II veteran James Lee bought a small Ford dealership in Elm City, NC in 1953.

COVER STORY

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John, walk us through the early history of your organization, when you first started with your father and then the transformation to when you took over the dealership.

I grew up in the car business. Before becoming a Ford dealer, my father, James Lee, started working at a Ford plant in Norfolk, VA, after he got out of the Navy in 1946. A couple of years later, he had an opportunity to work for a couple of small dealers in the northeastern part of North Carolina -- this was in the late ‘40s and early ‘50s. In 1953, with $5,000, he bought an almost-closed small Ford dealership in Elm City, NC. It was a town of about 1,000 people, located between two fairly good-sized mid-markets, Wilson and Rocky Mount.

I was born about six years later in 1959 – the third of three children - and grew up in that small town. I could ride my bicycle to school. I would also ride my bicycle down to the original dealership -- Lee Motor Company. Truth is, it was a very small dealership – wasn’t even big enough for a showroom. My dad might have had 12 employees.

I was able to spend a lot of time there. I certainly had an interest from day one in the business. I liked being around a car dealership and being in back in the service department with the mechanics or watching how cars were sold.

My father had a great personality. People really liked him. People trusted him. He could talk to anybody. He treated everybody the same, which is, by the way, how I’ve always wanted to conduct my life in dealing with people.

He had a real good trade with farmers. He could talk to a farmer that had been in the field for 14 or 15 hours or he could talk to a local banker. And he always treated them the same. I had the good fortune to watch that growing up. He was somewhat old-fashioned – a World War II veteran. But for whatever reason, whenever I hung out there, he never told me to go home or go play ball somewhere. He was very happy to have me be there and to sit in his office to watch and listen to him, which was great because I just was very interested in -- enthralled you could say -- with the car business.

What was your first real job at the dealership?

Well, of course, I’ve done it all. After Elm City, we moved to Wilson in 1967, and about three years later, he had built a facility on a major highway, Highway 301, which is the main north-south route.

To answer your question, I really did do everything. I cleaned commodes. I scrubbed floors. I swept. I said “Hello” to customers. I washed cars, changed oil, did tune-up jobs. You name it, I’ve done it. But the proudest thing I can say in my life, outside of my family, is that I can never remember not having a job. We lived in the country. I grew up “putting in tobacco,” which is what we called it. I worked in the tobacco fields and on a hog

farm. I bagged groceries. I know these jobs aren’t related to the car business, but you name it, I’ve done it. I’m proud of the fact that the good Lord gave me a drive to work, and that my father and parents were hard-working people. I saw that and it inspired me. If you want something, you have to work for it. And that’s exactly what I did.

John, how do those lessons of work experience translate to your experience now as an owner?

Well, I’m attracted to people who have a good work ethic. I’m able to recognize an individual who really wants to put in the time to make a difference. There are all sorts of clichés in our business. You can work smart, you can work hard, but I believe you have to work hard and smart.

This is a very demanding business. We have to be on our best game when people are getting off work, and we have to be prepared. I’ve always prided myself in being able to pick employees who have a strong work ethic and want to put in the time to make a difference and to improve themselves.

Let’s fast forward from 1970 up to 2013 – 43 years later. You began as a single point Ford dealership with a family. You’ve grown to an amazing size. Tell us about the challenges you’ve had getting to this point.

Let’s see. I had never worked in any kind of white collar situation in the dealership until my father became sick in 1979. He was only 56 when he passed away.

“Son, I want to tell you something. The reason that I bought this car from

you is you didn’t act like I could not buy because I was wearing my overalls.”

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FEATURE

O n a rain-slicked night in Italy’s soaring Dolomites, that romantic attachment to Audi’s once-groundbreaking, damn-the-weather

traction system is easy to understand. We’re driving the discreetly revamped R8 on a two-day northbound trek from a Moto GP track in Rimini, to a memorable seaside lunch in Venice and into the mountains of Italy and Austria, descending to take a beer-soaked checkered flag in Munich. But you don’t have to be living la dolce

First Drive: Audi R8

vita to appreciate the oft-downplayed performance edge of Quattro. On a slippery morning in Toledo, or a downpour in Sonoma, Audi sports cars go all superhero while the weather Kryptonites rear-drivers like Corvettes, sapping their vaunted muscle, turning them into timid Clark Kents.

A nice set of winter tires helps. With autumn snow already frosting high Alpine passes, an Audi engineer has prudently shod our R8 convoy of V-8 coupes, V-10 Spyders, and the V-10 Plus model with Dunlop Winter Sport tires.

That V-10 Plus model is new. This weight-watching, 550-hp show-off replaces the limited-run GT coupe and Spyder atop the lineup when R8s reach showrooms in March. (These time-travelers skip past 2013 for a 2014 model-year designation). For now, the Plus is available only as a hardtop. The Euro-market Plus we’re driving shaves 110 pounds from the standard V-10, in part via ceramic brakes and less sound-absorption material. American versions will weigh more, forgoing the Euro version’s fiberglass shell seats and clear carbon engine cover.

Here, with the moon poking a hole in stubborn clouds, I’m climbing a 525-hp V-10 Spyder through northern Italy’s Parco Nazionale Dolomiti Bellunesi. This national park’s spectacular, pink-hued granite walls and strange grassy peaks stand between me and Bolzano -- or Bozen, the town’s Deutsche name in this largely German-speaking province of South Tyrol.

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2014 Audi R8On sale: MarchPrice: $115,000/$150,000/$180,000 (V-8/V-10/Plus, est.)Engine: 4.2L V-8, 430 hp, 317 lb-ft; 5.2L V-10, 525/550 hp; 391/398 lb-ftDrive: Four-wheelEPA Mileage: 13/21 mpg (est.)

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BEFORE AFTER

19 NOVEMBER 2013 | DEALERdealer-magazine.com

For more articles, blogs and daily news visit us at www.Dealer-magazine.com


A Menu Lesson from Panera Bread

Jim Maxim, Jr., is President of MaximTrak Technologies, a Leader in F&I Software Solutions for Automotive Dealerships. You can email Jim at [email protected]

P anera Bread Co. has a unique menu system. One menu is the normal-type from which guests choose their purchases when visiting the restaurants. The

other is a secret menu, available only to those in the know through social media, who then pass a secret code-like whisper to the order-taker at the store.

One diner remarked that had she known about this second “secret” option, she would have opted for that choice, even if the price-points were higher.

A marketing professor somewhere called the strategy “brilliant,” but it seems to me a hidden menu whether in the restaurant or car business is as good as no menu at all. I suppose time will determine if our professor’s insight is clear.

In the meantime, when it comes to selling aftermarket products through the F&I office, menus that clearly present the dealership’s array of offerings to customers translate into more customers buying more products.

The truth is, there is no better way to increase F&I penetration and profitability than by using a menu. Not to mention that regular use of a menu helps ensure the dealership’s compliance to consumer finance regulations as well.

We know this because some dealers continue to use “secret” menus, meaning they use no menu at all. Instead, they present F&I products less formally, less consistently and less profitably. That is, they wing it – and it is costing them a lot of bread!

For instance, in a recent study comparing dealership use of F&I e-menu software versus times they use no menu at all, e-menu use results in 32% penetration lifts for service contracts and per-vehicle-retail increases on average of 33%!

“That’s huge money,” said one dealer who participated in the study.

It’s doubtful this dealer’s customers’ F&I product purchases would have increased to such levels had the dealership’s menu been “hidden” and not front-and center and presented professionally, competently and confidently.

ADVERTISERS PAGE NO.

Ally Financial Services .........................................07

Austin Consulting Group ....................................38

AutoMate ................................................................05

Automotive Resource Partners ..................30 - 31

BG Products ..........................................................60

Borroughs Corporation .......................................55

David Lewis & Associates ...................................20

Mobile Productivity, Inc........................................13

NADA Used Car Guide .......................................43

Playback Now ........................................................58

Progressive Basics ...............................................59

TD Auto Finance ...................................................02

FINANCE & INSURANCE

ADVERTISER INDEX

NOVEMBER 2013 DealerDealer-magazine.com 45

worse, these dealers are often passing by highly desirable, in-demand vehicles that, by their nature, require more money to acquire and recondition them.

I should add here that the maximum 84 percent Cost to Market benchmark is especially important in today’s era of high wholesale prices and retail price pressure. In this environment, most used vehicles transact at a 90 percent Cost to Market ratio, which translates to a mighty slim 6 percent margin—hardly enough for a dealer to pay a commission and make a profit.

Use Cost To Market ratios to diagnose profitability problems. It’s common for dealers to say “I’m not making any money in used cars.” When I hear this statement, I look close at a dealer’s Cost to Market ratio for their used vehicle inventory.

In many cases, the dealers aren’t paying close enough attention—their inventory Cost to Market ratio hovers well north of 90 percent and they wonder why front-end margins are suffering.

Besides the inattention, the root causes of the margin trouble often owe to a lack of discipline or effort on the part of dealers to find and acquire vehicles with more favorable Cost to Market metrics, and/or the dealers spend too much time and money to recondition the vehicles they do acquire.

Once dealers address these controllable cost-related issues, they are much better able to achieve their front-end gross profit goals (assuming they don’t give up gross margin at their sales desks).

Finally, it’s important for dealers to also recognize that Cost to Market is just one of three critical metrics to improve profitability in their used vehicle operations. You’ve still got to get the “right” cars (e.g., Market Days Supply) and price them in a manner that assures their quick sale to maximize front-end gross and minimize age issues (e.g., Price to Market).

In addition, today’s market requires that dealers sell more used vehicles in less time. This operational necessity means that dealers should, at all times, maintain at least 50 percent of their overall used vehicle inventory under 30 days of age.

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Dale Pollak, vAuto’s Founder, has 13 years of Dealer Leadership Experience and is a highly sought after best-selling author and recognized speaker on maximizing dealership profits from preowned vehicle operations. Pollak received his B.S. in Business Administration from Indiana University and is a graduate of the General Motors Institute of Automotive Development. He also holds a law degree from DePaul University’s College of Law, and is a four-time winner of the American Jurisprudence Award. You can email Dale at [email protected]

ADVERTISER PAGE NO.

Ally Financial Services ...................................................7

Austin Consulting Group .......................................... 38

AutoMate ...........................................................................5

Automotive Resource Partners .......................30 - 31

BG Products ................................................................... 60

Borroughs Corporation ............................................. 55

David Lewis & Associates .......................................... 20

Mobile Productivity, Inc ............................................ 13

NADA Used Car Guide ............................................... 43

Playback Now ............................................................... 58

Progressive Basics ........................................................ 59

TD Auto Finance ..............................................................2

ADVERTISER INDEX

ADVERTISER INDEX

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