Monthly Archives: January 2012

$200,000 Training Giveaway!

DealerPro $200,000 Training Giveaway!

Come by booth #2772 at the NADA to register! It’s free to enter!

No purchase necessary!

Prizes include 50% off 2 Day in-Dealership Profit Potential Analysis, 5 Days of in-Dealership Service Advisor Training or one year unlimited of DealerPro VT online Training for your entire Dealership!

It’s easy to enter! Just drop off your business card and you are in! Stop by booth #2772 and ask us how to get a free Business Plan for Achieving 100% Service Absorption!

DealerPro is the leading Fixed Ops Training Company in the industry with “Results you can bank on!” When we say Profit, we mean it! Get over to booth #2772 and get registered! Limited to one entry per Dealership!

Here is what you can win!
· 10–FREE One Year subscriptions to DealerProVT with Unlimited usage worth $50,000!

· 100–50% OFF a Two Day In-dealership Profit Potential Analysis with Business Plan! $50,000 in Dealership savings is available!

· 30—Training Coupons for $2000 off any 5 day In-dealership Training Package for a total of $60,000! That’s 28%* off our normal price!

· 4—FREE 5 Day In-dealership Service & Parts Training Packages for only 4 Lucky Dealerships! A VALUE OF $40,000!

TOTAL TRAINING GIVEAWAY…$200,000!!!!!!

*Quoted Price is for a 5 day in Dealership Installation Week as part of our Performance Driven Training Program. Other Training Programs offered at different rates. Percentage of savings based on the Program chosen.

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Not sayin’ this is happening in your Dealership…

In many Dealerships lack of Profitability in Fixed Operations starts with just 3 processes that are not getting done with every Customer that comes in the door.

Everything starts with building a relationship. It sounds easy, we say it all the time and there is not one Sales book, cd, mp3…course…whatever that does not have some chapter on building relationships.

The Service Department is no different. Studies show that Customers who do not feel taken care of find a reason to do business elsewhere.

Not sayin’ this is happening in your Dealership…

Customers are coming into the service drive and not getting a walk around. It’s true.  Just go stand unobtrusively and watch the service drive for a couple of mornings.

How many Customers are coming in and not being greeted and not getting a thorough walk around? Let’s say for arguments sake that 50% of your Customers come in the door and are properly greeted and get a walk around.

How many ROs does your Service Department write per day?

In front end language, what if 50% of the “ups” that come in were not greeted or presented with an opportunity to purchase a vehicle?

How long would before that Sales Manager was kicked to the curb?

So, if 50% of your Customers do not get an opportunity to have their vehicle thoroughly inspected and to have repairs completed while in your Service Department, what is this doing to your Sales per Repair order?

How many Sales organizations can stay in business with 50% of the Sales opportunity taken away before they even present a product or service to sell?

Hey, maybe in your Dealership it’s only 30%! Great News!

So after not getting a walk around the vehicle does not get a multipoint inspection. Why? In some stores (not sayin’ this is happening in your store) Service Advisors and Technicians have circumvented the process or stopped doing it altogether.

And the Service Advisors and Technicians in those stores can justify why.

Here are the Top 10 reasons “we don’t do it.”.

“They were just in.”

“He/She never buys anything. They are just a mooch.”

“There are too many cars in here today.”

“I didn’t have time.”

“The Customer told me not to do it.”

“I ran out of inspection forms.”

“They are a waiter.”

“It’s too (fill in the weather blank).”

“It takes too long.”

“The Advisor can’t sell it anyways, why bother.”

So the one person your Dealership has been trying to attract comes in (your Customer) and does not get a multipoint inspection because an employee decided not to do one?

Whose name is on the side of the building?

And probably the number one area that Profitability is lost is on the phones. (not  sayin’ this is happening in your Dealership)

People are calling to come in and not being handled properly. You can hear it for yourself. Just go stand by the Advisors workstation and listen.

Call after call coming in and appointments not getting made. It’s not because they don’t want the appointment, it’s because in our industry, everyone assumes that basic phone handling skills are a pre-requisite for becoming an Advisor.

And everyone has a different level of skill. Some do it right, some do it sometimes and some not at all.

Probably the single biggest impact we (DealerPro) have in a store right away is getting everyone answering the phones properly. Even in our “technosociety” people still call before they come in. And if the person answering the phone is not trained to do it properly, why would they come in?

If you are looking for ways to get more in the bank from your Fixed Operations then you might want to take a look at these 3 processes.

Not sayin’ that these are not being  done in your store…

See us at the NADA! Booth #2772. Stop by and register for the $200,000 Training Giveaway!

“An Enemy Called Average”

The title of this article comes from the book “An Enemy Called Average” by John Mason. The purpose of his book is to get you from where you are currently to where you dream to be. Mr. Mason says “Break the chains of mediocrity and then live the life you dream of.” This of course can apply in your personal life as well as your professional one.

Far too often in our industry we have Dealers, General Managers, Service Directors, etc. who focus on and measure themselves in terms of the “average” dealer. Here are some examples:

“The average dealer is grossing $700 PRU in F&I income”

“The average salesperson sells 11 units per month

“The average Service Advisor sells 1.4 HPRO”

“The average CSI for my region is…..”

“The average …….for my 20 Group is ………”

Does this sound familiar to you?

Additionally your manufacturers also provide composites and reports showing the average this and the average that so you can compare yourself to what’s average.

Here‘s a simple exercise for you complete after reading my article. When you get up tomorrow morning ask your family to sit at the kitchen table for a brief family meeting before you go off to work and before the kids are off to school.

Stand up in front of your family and say the following: “It looks like it’s going to be an average day here in Hometown, U.S.A., and your average Dad and your average husband is going to his average job to put forth an average effort to maintain my average paycheck so I can support my average kids and my lovely average wife.

By the way kids, at school I want you to focus on getting average grades and you don’t really need to put forth the effort to be a great student so a “C” will be just fine.”

Does that work for you? How’s that average wife comment going to work out for you? Are you excited about holding that meeting?

If you are a manager how about you ask to meet with the Dealer and say the following: “Boss I just wanted to let you know that I think you are an average Dealer, so I’m going to give you an average effort today so I can produce for you some average results and manage my average department.” I bet nobody is taking notes on this one!

Let’s not forget what average really is. It is nothing more than a reference point.

Average means you are the “Worst of the Best or the Best of the Worst!”

Is that where you really want to be? I hope you answered NO WAY!

Well if that is true then why is it that when I speak to hundreds of dealers across our country I hear comments like “Well Don the average HPRO for my 20 Group is 1.4 and I’m averaging 1.5 so I’m doing a pretty good job.” No Sir-you are still hanging around with that “Best of the Worst crowd! Why do so many of you use the word average like it is a good place to be? Do you really want to be a straight “C” Dealer? Does the term mediocre Dealer appeal to you? I think not.

So how do you go from being average to becoming a Top Performer?

It all starts with one word-Commitment.

Are you committed to change? Are you committed to leaving your comfort zone? Are you committed to achieving different results? Think of it this way—when it comes to making “Bacon & Eggs” the chicken was a participant but the pig was totally committed.

If you, the Dealer, are not totally committed then nothing is going to happen differently. As Zig Ziglar says “You have the perfect processes in place to get you exactly what you got last year.” Get committed to change.

Next you must establish SMART goals. Specific-Measurable-Achievable-Realistic-Time based.

Here is an example: “I want to increase my retail HPRO by .5 over the next 6 months”

Specific: Yes it is—retail Ro’s only—increase .5 HPRO (Don’t forget to calculate how much specific gross profit you will produce on parts as well as labor with that extra .5 HPRO)

Measurable: Yes it is—your DMS can print a Service Advisor Performance Report DAILY showing the HPRO for each Advisor

Achievable: Not sure—what are my Advisors going to do differently to achieve different results? If they could sell the extra .5 HPRO why haven’t they already done so? Do they have a good menu to sell from? Do they have the proper communication skills and processes to make a feature benefit presentation to your customers? Are they willing to leave their comfort zones? Are they committed to change? (Chickens or Pigs?)

Realistic: Yes it is—since the average dealer is averaging 1.4 that means a lot of dealers are doing much better than 1.4 and since there is a multitude of dealers out there averaging 2.0 to 2.5 HPRO then another .5 is very realistic.

Time Based: Yes it is—you have 6 months to decide what you are going to do differently, what new processes will you implement, how will you train everyone on new skills that will increase their sales performance and provide the customer with a higher level of service?

Once you achieve your SMART goal then move on to the next one. Long term success is a journey not just a destination. That first SMART goal is just the first leg of your journey. Do not allow yourself to become complacent because you will gravitate back toward mediocrity.

John Mason in his book  “An Enemy Called Average” states: “Mediocrity is a region bound on the north by compromise, on the south by indecision, on the east by past thinking and on the west by a lack of vision.”

Every department in your dealership must be a profit center for the dealer who wants to thrive and not just survive in this very competitive industry of ours. The aftermarket service providers currently have over 80% of all the parts and service business in America. Don’t you think it’s time we started taking it back?

Don Reed-CEO

DealerPro Training Solutions

“Missed it by that much”

There is an old saying carpenters use. “Measure twice, cut once.”

I recently went to a Dealer to present DealerPro and our Performance Driven Training Program and guess what…I measured once and missed the cut.

I didn’t miss by much. About a 1/16th of and inch or so. When you really think about it, on a small scale, 1/16th is not that much at all. It really does not seem that big a deal.

But miss by 1/16th of an inch when you are calculating something like the square footage of your home and taxes are involved and suddenly you remember things like high school algebra and can quote complex mathematical theories.

The point I am making is everyday we all say things to ourselves like “Oh, it’s ok if I don’t give that Customer a menu because I know that they don’t buy anything” or “I’m not going to worry about that multipoint inspection. They were in just a few months ago” and we give ourselves a pass.

Why?

It’s just a little bit and it won’t make a difference. Right?

I flew 200o miles to present our program to a Dealer that was not prepared to see me because I failed to follow my own process. I got busy with other things and did not “measure twice, cut once.” Can you guess the end result?

It’s never the big disaster that kills a deal. Big disasters almost always start with small decisions that don’t really seem that important when you are making them.

Deciding not to personally call this Dealer and get him on the phone even after we had talked a couple of times, did not seem that big a deal. I mean, everybody reads their email…right? And everybody can read and follow directions…can’t they?

It was only a little shortcut. And it caused a huge miss.

Are your Service Advisors taking those little “shortcuts” because in their minds “it’s just a little thing” and nobody will notice? Are you allowing your Service Team to circumvent, use “choice implementation” or refuse to follow processes that are in place? Are they “missing the cut?”

Take the time NOW to review everything you are doing that is working and  everything that is not working and find out why.

Grandma dropped her car off and did not get a multipoint inspection? Why?

Mr. Jones came in for a recall and was not offered a menu? Why?

Billybob the local twice a month customer came in and was not greeted properly? Why?

Silly Sally the Service Advisor did not complete and walk around on her 10 writeups today? Why?

Ms. Coffeecellphone came in and was completely taken care of and even wrote a letter to the owner about her recent service experience. Why?

It’s not just about what is not being done. It also about what is being done correctly.

Find out what is being done correctly… train, show,coach, review, train, show, coach, review, lather, rinse, repeat daily for maximum results.

Do this enough and missing by just a 1/16th becomes a footnote in your Success Story.

Me, I’m back to measuring twice. I hate missing the cut. Don’t you?

(send me an email with the name of the famous tv show that the title of this blog post came from and I’ll get your Service Advisors signed up for a free e-learning series lbuchholz@dealerprotraining.com)