Visit https://wyemanagement.com/wye-tv/ to watch more Wye Success Tips.
Visit https://wyemanagement.com/wye-tv/ to watch more Wye Success Tips.
Visit https://wyemanagement.com/wye-tv/ to watch more Wye Success Tips.
Moose Jaw Toyota, a member of the Taylor Automotive Group, is seeking a young dynamic individual to become the General Manager. Moose Jaw Toyota is a dealership that has incredible potential to grow in all segments of the dealership. They are looking for someone that can take this dealership to the next level while providing great customer service and continue to reward employees with a great working environment.
If you feel that you have the experience and the abilities to be the leader of this dealership, they would like to hear from you. Please feel free to call Chad Taylor at 1-306-694-1355 or send him your resume at email@example.com
Wye Management recently updated its Special Finance workshop with the latest cutting edge on-line strategies courtesy of Turbo Marketing Solutions. This 1 day in-house workshop will provide you with the tools and strategies to start generating both new PRIME and NON-PRIME customers for your dealership. If you need to increase your new and used vehicle sales, this workshop will likely change the future of your business. Check out the video overview at this link: https://www.youtube.com/watch?v=pN4ymQzq-NY and then contact Anne Preston at 1.888.993.6468 to inquire on available dates.
A lay of the land can quickly identify the overwhelming need to improve Business Office profitability. The Internet has made used vehicle pricing transparent today and with the need to turn inventory quicker before aging and depreciating sets in, many dealers are forced to price their vehicles more aggressively. Large independent used vehicle operators in some areas of the country with massive inventories and minimal reconditioning have also forced dealers in these areas to price their vehicles lower to remain competitive. Many manufacturers restructured their pricing over the past several years reducing available profit margins for their dealers. Many new and lower-priced models that make up a significant percentage of new vehicle deliveries have also curbed departmental profitability. These factors and possibly more have placed a negative impact on front-end gross profits forcing dealers to more heavily rely on Business Office profits to make up the difference. Some dealers have recognized these factors and adopted a “turn & earn” business model – they move their vehicles as quickly as possible so they can get their customers into their Business Offices where the “real” profits are made. The days of accepting mediocrity in the Business Office are long gone for any dealer today.
Most pro-active dealers who have felt these competitive pressures have placed a new focus and commitment to improving their Business Office performance. All of the successful dealerships that we work with today have a documented sales process that their sales teams follow to ensure high closing ratios and gross profits. When it comes to some Business Offices however, we often find no process whatsoever. Another common observation amongst poorer performing Business Managers is limited product knowledge; some do not even know what is covered and what is not covered under the manufacturer’s warranties. This is a result of a lack of formal training or no support or maintenance training during their career. The following are some examples of some success strategies used to improve performance:
1. The first step to improving performance is to remove a customer’s perception that they are being sold products. Top performing Business Managers provide customers with protection plans and solutions that their customers are “eligible to register.” Employing this strategy yields amazing results. Poorer performing Business Managers use a disclosure method informing customers what they can purchase maintaining the perception that they are being sold.
2. Just as with any vehicle sales process, Business Managers need to adopt an effective sales process that suits their personality, is customer friendly and produces results. There are currently at least 5 distinct sales processes being used today: “step-selling,” “menu selling,” “staggered selling,” “sandwich selling” and a “load, lock and fire” strategy. I have found that any of these sales processes can produce outstanding results for a Business Manager when properly executed – it’s a question of personal taste. Many poorer performing Business Managers do not know how to even describe their sales process or if they do follow a strategy, it’s poorly done because they were never shown how to properly execute it. The needed solution here is to adopt a sales process or get the current one tuned-up.
3. Often times, Business Managers’ presentations are at the root of poor performance. Most customers do not come into a Business Office wanting or needing vehicle and loan/lease protection products. Presentations need to be comprised with the following objectives:
Over-hauling a Business Manager’s presentations to execute these objectives may be warranted.
4. Securing buy-in from the sales staff and management by educating them about the need and value of Business Office protection plans and products is also a critical part of a solution. If your Business Managers are not performing at an optimum level of performance, it is unlikely that they will be able to properly train the staff so you should seek out a professional training solution.
5. Many dealers accept the natural handicaps associated with their brand or the clientele that their dealership attracts. (for example: longer comprehensive or powertrain warranties, no reserve on sub-vented interest rates, no vehicle protection products like rust proofing, unusually high lease penetration rates on their new vehicle sales or an extraordinary high percentage of cash deals.) Some of these factors legitimately curb Business Office performance but top-flight Business Managers have learned to overcome these hurdles – there are solutions available. In many cases, re-visiting the product line-up that your Business Office provides your customers is warranted. For example, there are still many dealers who do not offer Guaranteed Auto Protection for their customers’ finance contracts; ethically, they should be. Research the products and services that other dealerships offer and select ones that will be valuable for your customers.
6. Many dealerships and Business Managers have taken the inconsistency out of Business Office presentations by utilizing slide shows, audio slide shows or video to present vehicle and loan/lease protection plans and products to their customers; some have even had them translated into different languages accommodating their multi-cultural clientele.
7. Sending a Business Manager to a one or two day workshop can produce the results that you are seeking but often and due to limited staffing or travel, an in-house coaching solution may be more practical. Newly hired Business Managers should complete a comprehensive training program.
Following these suggestions is perhaps a better strategy than just replacing a good and loyal employee. Reconditioning a used vehicle is an investment and not a cost of sale that allows the vehicle to sell quicker and for a higher price; training is also an item that shows up as an expense just as reconditioning does on a financial statement but investing at improving your Business Office will yield improved profits on all of your transactions moving forward. Another perspective to consider is that your Business Office produces the highest gross profit per square foot in your dealership. Take care of this prime piece of real estate and it will reward you!
Hector Bosotti is a National Trainer and Consultant for Wye Management and President of www.f-iresource.com. He has over 29 years of retail automotive experience whose success has been founded on 3 key elements: People, Process & Training.
Please send your thoughts or requests to firstname.lastname@example.org or contact him directly at 647.292.4503. Wye Management offers in-dealership training & consulting and hosts workshops from coast to coast. For more information, visit wyemanagement.com
How about sharing some sales tips with your sales team at your next meeting? Here are a few ideas:
►When fielding a sales call, don’t answer, “Sales — this is Jim Norton speaking. How can I help you today?” Answer a sales call like this, “It’s a great day at ABC Motors. I’d love to help you today.” The second response is an assertion rather than a question which will make your salespeople sound unique and engage more customers. ►Jackie B. Cooper once gave this advice at a workshop: “Never forget your customers and never let your customers forget you.” He said that if you practice that philosophy, you’ll have a very profitable career. One of Canada’s top salespeople today adopted that strategy and practices it by simply booking all of his clients’ service appointments – he speaks and sees them all the time.
►Pick one of your oldest used vehicles in stock and find a walk around video on YouTube to show them. Visit auto123.com and show your salespeople how they can find all of the specifications of that vehicle. Your Used Vehicle Manager will appreciate your research and effort as well.
►Introduce leasing as a concept comparing it to buying fruits:“Wouldn’t it be great to buy bananas without having to pay for the peel as well?”
► If a customer tells you that they don’t have enough time, just respond in the following way: “No problem — just let me know when you have to leave.”Since the time issue is just a defence mechanism, the objection is dismissed allowing the salesperson to move through their sales process. Your team will love you!
► Have your salespeople share these statistics to “WOW” their customers. “In a recent June 2012 IIHS report revealed that ESC (Electronic Stability Control) has been found to reduce fatal single-vehicle crash risk by 49 percent, fatal single-vehicle rollovers by 75 percent for SUVs and by 72 percent for cars and reduces single-vehicle crashes of cars by 32 percent and single-vehicle crashes of SUVs by 57 percent. NHTSA estimates that ESC has the potential to prevent 72 percent of the car rollovers and 64 percent of the SUV rollovers that would otherwise occur in single-vehicle crashes.” Increase your asset value by sharing tips that can help your salespeople sell more cars and not just more rust proofing.
Dealers need to maintain a healthy book of business with their lenders. Statistics on repossessions and delinquencies for each dealership are reviewed and used to help manage approval rates. Business Managers and salespeople can help improve their dealership’s approval rates by coaching their customers on the importance of maintaining vehicle payments and how to improve their credit scores. Some dealers call this procedure “the riot act.” Pro-active dealers have even developed a “Credit Recovery” manual that they provide each of their non-prime customers at delivery laying a foundation for future prime sales.
Now that’s a great example of an oxymoron isn’t it?
Menu step-selling is now proliferating Business offices across the country with great success mainly in response to the increasing number of products that
are now being sold. One of step-selling’s drawbacks is that many
Business Managers do not present all of their products using this sales
process because their customers grow impatient and the turn over is cut
short. One of the advantages of menu selling is that all of the products
are presented at once giving the customer every opportunity to
purchase. This concept of step-selling using a menu was developed as a
result of the myriad of financial protection plans that are now
available and in response to those Business Managers who insist on
step-selling their products.
One of the most common strategies that
is now being used is to step-sell loan & lease protection plans
using a menu table. This strategy and tool can be utilized during the
credit application, immediately after the credit application, after
either an extended warranty or a vehicle protection presentation or at
the delivery turn over.
The customer is presented with all of the protection plans as payments and asked
which ones they would like to register. Here’s an example:
If you are looking for a self diagnosis tool, check this one out:
Tired of not selling enough Creditor Insurance?
If you answered yes, then I have a challenge for you. Before I share a very simple yet practical solution with you, let’s make sure you are qualified to apply the techniques covered in this article.
Well, if you answered yes to any of the questions, then congratulations! I believe that you are definitely qualified to try something new. So, let’s begin by taking a closer look at what doesn’t seem to be working. The traditional way of presenting Creditor Insurance goes something like this (over simplified): “Mr. & Mrs. Jones, do you normally insure your loans?” Or, “Did you want the life and disability insurance on your loan?” The typical customer responses include variations of the following: “How much is it? Do I have to take it? Not interested, I am already covered through work!”
The real issue that I have with the traditional presentation is that it happens to be in direct contrast to what common sense dictates. Let me explain what I mean. We sell Creditor Insurance or Loan Insurance and the customer must have a loan in order for them to have a chance to purchase your product. The loan is something that requires you, the Financial Services Manager, to arrange for them. Since that has not yet happened, it is impossible for them to already have your product. Think about that for a moment please! Remember, as long as the customer thinks you are trying to sell them something they already have and pay for, they will most likely say no to whatever you have to offer.
Please consider the flow of your Service Contract presentation for a moment and this will make perfect sense. Isn’t it true that you first discuss the difference between what is and is not covered on the vehicle before you offer the upgrade? If the customer has a question about the powertrain or comprehensive factory coverage, it is dealt with before any new product upgrade has been introduced. This makes it easier to avoid confusion and the customer sees that the new plan you are offering is an upgrade or an enhancement as opposed to a duplication of their existing coverage. This method has worked for over 30 years in many industries so, why not use it to sell more Creditor Insurance with much less resistance from your customers?
I am willing to bet there is not one experienced or inexperienced Finance Manager who would think of selling Service Contracts without first discussing the existing coverage on the new vehicle. Yet, when it comes to reviewing a customer’s existing insurance coverage, we have been doing the opposite. I don’t know why this has gone on for so long but, it is time for a change. Every successful salesperson knows that before you can make a change, the first step is to accept that the current system just doesn’t work. So, if you are still reading along with me, hopefully that means you agree and are ready to try something radically different yet, incredibly simple at the same time. Please remember that with this change comes improved results, better CSI and more income.
Now, when I said earlier that you may need a sense of humour, I wasn’t kidding. We are going to look no further than the character George Costanza from the Seinfeld show. The episode I draw the analogy from is the one where George decides that ‘doing the opposite’ is his best chance for success in his troubled life. Nothing ever seems to go right for George until he decides to go against his instincts for the first time and it actually produces a positive result.
If we apply this strategy to selling Creditor Insurance, instead of showing your product and then waiting for the customer to tell you they already have enough insurance, why not discuss their existing coverage first? This allows you to show the difference between what they have and what they need. It also helps to eliminate the notion that you are attempting to duplicate their existing coverage. Once the customer realizes what you are talking about, they become more willing to engage in a dialogue with you and eventually they will purchase your protection.
So, here is a simple challenge for you. For the next 30 days, commit yourself to using the same flow with Creditor Insurance as you do with Service Contracts. Explain or discuss the coverage they already have and then show how yours will complement, supplement, or enhance it. You be the one to bring up their coverage in a positive light instead of them bringing it up as a negative roadblock.
I guarantee you will have more fun selling the products and definitely have more success.
Tune in next time when we will go through a specific step by step model with word tracks to help you sell even more.
If you have any questions, please feel free to write to us at email@example.com .
Gordon Swail National Corporate Training Manager, SAL Group Industrial Alliance Insurance and Financial Services Inc.