Big Pimpin-is it happening to you?

I met with a dealer client the other day that was in a very enviable position, which is they are a brand new point. Even better, they had taken over a well established dealership with over an 80,000 customer base in a good location with a beautiful facility. New names, fresh start, almost like being able to go back to one’s youth yet retain all your accumulated knowledge.

So what is the downside? In meeting with the new e-commerce director, he showed me his marketing plan which consisted of subscribing to various 3^rd party sites to post inventory and obtain leads for which he would pay approx $20k a month. Now I ask you, would you allow someone else to steal your identity and pay for the privilege? How about I take all that makes you unique in your marketplace (your inventory) and make sure that if anyone looks for your product they are sure to see all your competition and have plenty of distractions to divert them from doing business with you? Best of all I’m going to ask you to pay me for this privilege.

Congratulations, you have now entered willingly into the world’s oldest profession and since you’ve relinquished control over your own identity, in order to protect it I and can charge you more and more down the road.

Look at your marketing mix. Are you being “Pimped”?

That instant gratification you experience by signing away your rights is sure to cost you more in the long term as you strive to obtain and keep control over your page one results. Building an on-line identity can pay huge dividends if done right but beware of the “plug-in” solutions. They can enslave you for life and be even more expensive to remedy long term!

Bryan Armstrong

bryanthecarguy@gmail.com

http://www.linkedin.com/in/bryanarmstrong

435-862-1966 cell

Big Pimpin-is it happening to you?

I met with a dealer client the other day that was in a very enviable position, which is they are a brand new point. Even better, they had taken over a well established dealership with over an 80,000 customer base in a good location with a beautiful facility. New names, fresh start, almost like being able to go back to one’s youth yet retain all your accumulated knowledge.

So what is the downside? In meeting with the new e-commerce director, he showed me his marketing plan which consisted of subscribing to various 3^rd party sites to post inventory and obtain leads for which he would pay approx $20k a month. Now I ask you, would you allow someone else to steal your identity and pay for the privilege? How about I take all that makes you unique in your marketplace (your inventory) and make sure that if anyone looks for your product they are sure to see all your competition and have plenty of distractions to divert them from doing business with you? Best of all I’m going to ask you to pay me for this privilege.

Congratulations, you have now entered willingly into the world’s oldest profession and since you’ve relinquished control over your own identity, in order to protect it I and can charge you more and more down the road.

Look at your marketing mix. Are you being “Pimped”?

That instant gratification you experience by signing away your rights is sure to cost you more in the long term as you strive to obtain and keep control over your page one results. Building an on-line identity can pay huge dividends if done right but beware of the “plug-in” solutions. They can enslave you for life and be even more expensive to remedy long term!

Bryan Armstrong

bryanthecarguy@gmail.com

http://www.linkedin.com/in/bryanarmstrong

435-862-1966 cell

Are you unknowingly alienating your customers?

                A few weeks ago I wrote about transparency in a new car sales transaction. Today I want to take it a step further. In the dealership world, to oft, we follow the old "some will, some won’t, so what? NEXT!", philosophy of old. We assure ourselves that C.S.I. is going to be great because we’ve made 3 calls and sent numerous e-mails and letters over the course of the first 30 days and everything was fine. The customer got a great price (200 under invoice), we under-allowed on the trade by $500 and made some back-end profit. Sound familiar? But it can all blow up because our customers, out of curiosity, logged on to our site and saw their car you assured them, through MMR reports and book sheets, was only worth $8,000 listed for $11,995. Now they are going over everything, re-financing at their credit union for 2 points less and canceling your gap, warranty, key and etch and hammering you on the survey to the O.E.M. that it was “shady and deceptive” and your on-line reviews are in the toilet.

                Sound familiar? Sure maybe not every customer, but we’ve all had it happen to us. What if we were able to turn even that adversary into an ally? It could be accomplished with a simple follow-up e-mail to every customer whose trade you are going to retail. Maybe something in the lines of:

                Dear Jim,

                We look forward to you seeing your previous vehicle on-line soon, here is the link. As you are aware we showed you a trade value of 8,000. We have sent your car through our shop and paid a master mechanic to look it over from stem to stern, luckily all it needed was new wipers, an oil change, air filter, 4 new tires and new brake pads. With our standard used diagnostic fee of $695 (to ensure everything was checked, protect our liability and comply with state and federal regulations) plus the parts and labor cost of $980 and a detail and marketing expense of $300 our cost in your vehicle is now approximately $10,000. You will see it listed at $11,995. The reason is of course that the new consumer will want to see some sort of discount and with us selling you your car at slightly below market, we hope to make approx 800-1000 on the sale of your trade so we net out approx $500 per car before commissions. By the way, since you know your previous vehicle better than anyone else, if you know of someone in the market for it send them in and if they buy it, or any other vehicle, we will gladly send you a referral fee of $100. With the excellent care you provided during your ownership term and the thorough re-conditioning we have given it, this car will surely provide someone years of good use.

                Thank you again for your business and should you have any questions or concerns please feel free to reach out.

                Sincerely,

                     Your car guy for life.

Again this may seem extreme, but it will surely defuse the angry customer who was going to be alienated without you ever knowing the reason why. Instead you hopefully now have a marketing ally who will tell his friends how the great car he traded is now even better and “you could probably pick it up for about 10k”.

                Transparency builds long term relationships. Are you willing to allow your customers into your business model or will you sit and hope that you can rip every trade and load the back end with no one being the wiser?

                I guarantee the client you take this extra step with, regardless of whether they were going to look or not, will at least give you first crack at their next purchase and appreciate your honesty and service before, during and after the sale.

Bryan Armstrong

435-862-1966

bryanthecarguy@gmail.com

http://www.linkedin.com/in/bryanarmstrong

Are you unknowingly alienating your customers?

                A few weeks ago I wrote about transparency in a new car sales transaction. Today I want to take it a step further. In the dealership world, to oft, we follow the old "some will, some won’t, so what? NEXT!", philosophy of old. We assure ourselves that C.S.I. is going to be great because we’ve made 3 calls and sent numerous e-mails and letters over the course of the first 30 days and everything was fine. The customer got a great price (200 under invoice), we under-allowed on the trade by $500 and made some back-end profit. Sound familiar? But it can all blow up because our customers, out of curiosity, logged on to our site and saw their car you assured them, through MMR reports and book sheets, was only worth $8,000 listed for $11,995. Now they are going over everything, re-financing at their credit union for 2 points less and canceling your gap, warranty, key and etch and hammering you on the survey to the O.E.M. that it was “shady and deceptive” and your on-line reviews are in the toilet.

                Sound familiar? Sure maybe not every customer, but we’ve all had it happen to us. What if we were able to turn even that adversary into an ally? It could be accomplished with a simple follow-up e-mail to every customer whose trade you are going to retail. Maybe something in the lines of:

                Dear Jim,

                We look forward to you seeing your previous vehicle on-line soon, here is the link. As you are aware we showed you a trade value of 8,000. We have sent your car through our shop and paid a master mechanic to look it over from stem to stern, luckily all it needed was new wipers, an oil change, air filter, 4 new tires and new brake pads. With our standard used diagnostic fee of $695 (to ensure everything was checked, protect our liability and comply with state and federal regulations) plus the parts and labor cost of $980 and a detail and marketing expense of $300 our cost in your vehicle is now approximately $10,000. You will see it listed at $11,995. The reason is of course that the new consumer will want to see some sort of discount and with us selling you your car at slightly below market, we hope to make approx 800-1000 on the sale of your trade so we net out approx $500 per car before commissions. By the way, since you know your previous vehicle better than anyone else, if you know of someone in the market for it send them in and if they buy it, or any other vehicle, we will gladly send you a referral fee of $100. With the excellent care you provided during your ownership term and the thorough re-conditioning we have given it, this car will surely provide someone years of good use.

                Thank you again for your business and should you have any questions or concerns please feel free to reach out.

                Sincerely,

                     Your car guy for life.

Again this may seem extreme, but it will surely defuse the angry customer who was going to be alienated without you ever knowing the reason why. Instead you hopefully now have a marketing ally who will tell his friends how the great car he traded is now even better and “you could probably pick it up for about 10k”.

                Transparency builds long term relationships. Are you willing to allow your customers into your business model or will you sit and hope that you can rip every trade and load the back end with no one being the wiser?

                I guarantee the client you take this extra step with, regardless of whether they were going to look or not, will at least give you first crack at their next purchase and appreciate your honesty and service before, during and after the sale.

Bryan Armstrong

435-862-1966

bryanthecarguy@gmail.com

http://www.linkedin.com/in/bryanarmstrong

                It’s a rare moment of clarity when a situation presents itself that allows one in digital marketing to put themselves on the other side of the equation and glimpse the possible mindset of the consumer. I was fortunate enough to experience such and the truths revealed were so impactful as to drive me to share the thought process.

With transparency being a buzzword that seems to be prevalent in our industry of late and becoming more bandied about than ever before as the way to entice buyers while gaining trust, I was fortunate enough to be able to understand a new perspective through a random conversation.

                There are many different sites that allow us in the industry to promote our products, processes and our personal brand and for anyone who says they post for any reason but to build their brand, promote a product or establish their proficiency, they would be hard pressed to convince me of their altruism. Even my own posts in the past have either been to report on the strengths/failures of a particular vender partnership, successes I’ve experienced or to try and preach the benefits to the industry as a whole that the days of being able to entice someone to buy simply because you have an inflatable gorilla on the roof are quickly moving behind us all. Simply put, maintaining the status quo is nothing more than glorified stagnation and as more and more information becomes readily available to consumers. The crossroad looms and the choice is becoming more apparent. Embrace it, integrate and use it as a value proposition or be slain (metaphorically speaking) by the slung rock stone against which the armament of huge ad budgets cannot defend. Remember with a couple of clicks your customers can gather information that unless it matches what you provide, immediately will eliminate you as a viable retailing option. So why have I favored certain formats over others? The answer was simple “I know what’s in it for them. I can see the ads down the side of the page and know that my content helps them attract ad dollars to generate revenue and establish themselves and their sites as hubs of vital information where they average car guy (me) can post content, receive affirmation or warnings and feedback from like-minded individuals who are perhaps further down the path than I and be marketed to buy an ever increasing host of “experts” with an agenda to sell. Because I know my environment, it has become a comfortable forum. Those sites that are not so transparent inherently make me distrustful of their motive and think they either have no reach or carry a hidden agenda. Now I’m not being paranoid or trying to “slam” any of the host of great UGC sites out there, but is my experience any different than the average car buyer?

                Most will arrive at my portal already armed with a plethora of information, both accurate and false, that they are using to aid in their decision. By ignoring it i.e. “we will beat anyone’s price” or “any vehicles will be sold at “X” under invoice/cost” we are not building value nor enticing customers in, but rather enforcing the misguided notion that we carry hidden agendas and that all the tales they read about holdback, dealer cash, financial reserve and financing flats and back end money are true.

                Now I’m aware that the argument for “to price or not to price” rages on and the tactics employed range from the vague to actually attaching and sending the invoice or book sheet but what if we were to empower and convert our customers with a logical, clearly defined worksheet that addressed the myths and rumors consumers have run across in their research. It could contain such basic items such as:

                Hold Back- how much is it on this vehicle and how that is money the Dealership uses as potential profit as well as to absorb many fixed expenses.

                Finance Reserve- the amount provided by the factory to pay interest on a flooring line during an average selling cycle and potential profit.

                Dealer Cash- extra incentive provided by OEM’s to stimulate sales on a particular vehicle.

                Spiffs/Spins- amounts paid to salespeople for focusing on and selling certain models.

For example if John Carbuyer sends a VIN specific lead on a new vehicle are you willing to send back a response that looks something like:

                John,

Thanks for your inquiry on stock #123456 the 2011 Toyota Camry Le. It is a wonderful vehicle and has received great reviews (link to screen shot of consumer review page posted on your own blog to prevent bounce/brand leakage).It is always a pleasure to deal with an internet consumer as I find that our forthwith approach is refreshing to most and provides for a smooth, seamless and satisfying experience.

                Here is a VIN specific brochure that will show you photos of the exact Camry you inquired about as well as photos so you can virtually walk around your new 2011 Camry (link to your own vehicle details page where you have actual photos/videos of the car as well as the equipment list posted).

                Most research sites, as I’m sure you have seen, deem that pricing should be at 20,469 (link to exact build Edmunds.com page or screen shot of like research site, 3^rd party affirmation).

                Our pricing structure would be this: (just for the record this is an entirely fictional car and this letter is for illustrative purposes only)

                We received this vehicle 96 days ago; it has an invoice of 20,135. There is also $365 of finance reserve which at our current flooring rate covered the interest for 68 days; the other 28 days have increased my cost in this vehicle by $149.47. However, the factory also has allowed me $687 in holdback bringing my current net cost on the vehicle to 19597.47. Obviously, as a business, there is a certain margin that we must maintain in order to be here to continue to serve you. I am going to pay a lot technician $12 an hour to be here ready to detail your new vehicle (2 hr), the salesman will make $150 so he can provide for his family and have a vested interest in serving you well, it will take approximately $40 in gas to fill your new car and I paid my mechanic $47 to go over it (PDI) and make sure everything was perfect for your comfort, convenience and safety. From this starting point of 19,858.47, my cost to date, I would ask for simply a 2% profit margin of $397.17 bringing the total amount to only $20,255.64 which as you can see even beats the Edmunds pricing referenced earlier. Though there are additional state mandated taxes and fees that will be in addition to this amount, I have in store a Business Manager who will go over these line by line as well as to whether in your particular situation it is better to take the $1,000 rebate, the 60 mos. @ 0% or the $750 sub vented cash incentive and the special lease.

                John, as you can see we believe in being completely transparent in our pricing structure and business practices and would only ask that in your shopping experience you not share our open, no-hassle price with any competitor. Also, if you come across a lower quote please ensure that the vehicles MSRP matches the one you chose here. All dealerships pay the same amount for their cars and anyone insulting you with their “we beat anyone” rhetoric is sure to be attempting to make the same amount or more but make you jump through their “hoops” to get what we give as simply a best business practice. Rest assured that when we meet, if for any reason this vehicle does not meet your expectations, we will be just as up front on any other vehicle pricing as well as any potential trades value.

We know that you have a myriad of options as to where you do business and sincerely appreciate the opportunity; I look forward to providing you a quick, professional delivery of your new Camry.

                Please contact me at your convenience through any of the methods below or simply reply to this e-mail with the date and time you will be in to do as final inspection of the Camry so that I may be prepared.

                                Sincerely,

                                                Name

                                                E-mail address

                                                Cell #

                                                Work #

                Extreme? Perhaps. Transparent? Definitely! Now there is no question that some deals will be lost as you get “shopped”, but price has never built loyalty or referrals the way an honest reputation has. So will you continue to stick your heard in the sand and think a couple emotion-building phrases will “Sell” your consumer or they’ll be so “wowed” by the balloons on the cars they’ll forget to read the contract? Why not provide the total experience and have them know it’s not a show with smoke and mirrors but rather an honest attempt to create a fun environment for what should be a joyous occasion vs. a painful grind. If this is to extreme for you or you’re the ISM that the egotistical manager (who thinks you can tell them what they want to hear just to get them in!) won’t empower to provide information like this, then I will be saddened by your eventual demise.

                Embracing transparency results in more volume, more Dealership loyalty and increased referrals. Whether it’s “word of mouth” or “word of mouse” its reputation you can no longer ignore.

Bryan Armstrong has a very successful background in Automotive and has filled every position in the Dealership from Lot Tech to Corporate Trainer/Director of a large Group. He is currently e-Commerce Director of Menlove Toyota Scion and can be reached at bamarketing@q.com or on his cell at 435-862-1966.

                It’s a rare moment of clarity when a situation presents itself that allows one in digital marketing to put themselves on the other side of the equation and glimpse the possible mindset of the consumer. I was fortunate enough to experience such and the truths revealed were so impactful as to drive me to share the thought process.

With transparency being a buzzword that seems to be prevalent in our industry of late and becoming more bandied about than ever before as the way to entice buyers while gaining trust, I was fortunate enough to be able to understand a new perspective through a random conversation.

                There are many different sites that allow us in the industry to promote our products, processes and our personal brand and for anyone who says they post for any reason but to build their brand, promote a product or establish their proficiency, they would be hard pressed to convince me of their altruism. Even my own posts in the past have either been to report on the strengths/failures of a particular vender partnership, successes I’ve experienced or to try and preach the benefits to the industry as a whole that the days of being able to entice someone to buy simply because you have an inflatable gorilla on the roof are quickly moving behind us all. Simply put, maintaining the status quo is nothing more than glorified stagnation and as more and more information becomes readily available to consumers. The crossroad looms and the choice is becoming more apparent. Embrace it, integrate and use it as a value proposition or be slain (metaphorically speaking) by the slung rock stone against which the armament of huge ad budgets cannot defend. Remember with a couple of clicks your customers can gather information that unless it matches what you provide, immediately will eliminate you as a viable retailing option. So why have I favored certain formats over others? The answer was simple “I know what’s in it for them. I can see the ads down the side of the page and know that my content helps them attract ad dollars to generate revenue and establish themselves and their sites as hubs of vital information where they average car guy (me) can post content, receive affirmation or warnings and feedback from like-minded individuals who are perhaps further down the path than I and be marketed to buy an ever increasing host of “experts” with an agenda to sell. Because I know my environment, it has become a comfortable forum. Those sites that are not so transparent inherently make me distrustful of their motive and think they either have no reach or carry a hidden agenda. Now I’m not being paranoid or trying to “slam” any of the host of great UGC sites out there, but is my experience any different than the average car buyer?

                Most will arrive at my portal already armed with a plethora of information, both accurate and false, that they are using to aid in their decision. By ignoring it i.e. “we will beat anyone’s price” or “any vehicles will be sold at “X” under invoice/cost” we are not building value nor enticing customers in, but rather enforcing the misguided notion that we carry hidden agendas and that all the tales they read about holdback, dealer cash, financial reserve and financing flats and back end money are true.

                Now I’m aware that the argument for “to price or not to price” rages on and the tactics employed range from the vague to actually attaching and sending the invoice or book sheet but what if we were to empower and convert our customers with a logical, clearly defined worksheet that addressed the myths and rumors consumers have run across in their research. It could contain such basic items such as:

                Hold Back- how much is it on this vehicle and how that is money the Dealership uses as potential profit as well as to absorb many fixed expenses.

                Finance Reserve- the amount provided by the factory to pay interest on a flooring line during an average selling cycle and potential profit.

                Dealer Cash- extra incentive provided by OEM’s to stimulate sales on a particular vehicle.

                Spiffs/Spins- amounts paid to salespeople for focusing on and selling certain models.

For example if John Carbuyer sends a VIN specific lead on a new vehicle are you willing to send back a response that looks something like:

                John,

Thanks for your inquiry on stock #123456 the 2011 Toyota Camry Le. It is a wonderful vehicle and has received great reviews (link to screen shot of consumer review page posted on your own blog to prevent bounce/brand leakage).It is always a pleasure to deal with an internet consumer as I find that our forthwith approach is refreshing to most and provides for a smooth, seamless and satisfying experience.

                Here is a VIN specific brochure that will show you photos of the exact Camry you inquired about as well as photos so you can virtually walk around your new 2011 Camry (link to your own vehicle details page where you have actual photos/videos of the car as well as the equipment list posted).

                Most research sites, as I’m sure you have seen, deem that pricing should be at 20,469 (link to exact build Edmunds.com page or screen shot of like research site, 3^rd party affirmation).

                Our pricing structure would be this: (just for the record this is an entirely fictional car and this letter is for illustrative purposes only)

                We received this vehicle 96 days ago; it has an invoice of 20,135. There is also $365 of finance reserve which at our current flooring rate covered the interest for 68 days; the other 28 days have increased my cost in this vehicle by $149.47. However, the factory also has allowed me $687 in holdback bringing my current net cost on the vehicle to 19597.47. Obviously, as a business, there is a certain margin that we must maintain in order to be here to continue to serve you. I am going to pay a lot technician $12 an hour to be here ready to detail your new vehicle (2 hr), the salesman will make $150 so he can provide for his family and have a vested interest in serving you well, it will take approximately $40 in gas to fill your new car and I paid my mechanic $47 to go over it (PDI) and make sure everything was perfect for your comfort, convenience and safety. From this starting point of 19,858.47, my cost to date, I would ask for simply a 2% profit margin of $397.17 bringing the total amount to only $20,255.64 which as you can see even beats the Edmunds pricing referenced earlier. Though there are additional state mandated taxes and fees that will be in addition to this amount, I have in store a Business Manager who will go over these line by line as well as to whether in your particular situation it is better to take the $1,000 rebate, the 60 mos. @ 0% or the $750 sub vented cash incentive and the special lease.

                John, as you can see we believe in being completely transparent in our pricing structure and business practices and would only ask that in your shopping experience you not share our open, no-hassle price with any competitor. Also, if you come across a lower quote please ensure that the vehicles MSRP matches the one you chose here. All dealerships pay the same amount for their cars and anyone insulting you with their “we beat anyone” rhetoric is sure to be attempting to make the same amount or more but make you jump through their “hoops” to get what we give as simply a best business practice. Rest assured that when we meet, if for any reason this vehicle does not meet your expectations, we will be just as up front on any other vehicle pricing as well as any potential trades value.

We know that you have a myriad of options as to where you do business and sincerely appreciate the opportunity; I look forward to providing you a quick, professional delivery of your new Camry.

                Please contact me at your convenience through any of the methods below or simply reply to this e-mail with the date and time you will be in to do as final inspection of the Camry so that I may be prepared.

                                Sincerely,

                                                Name

                                                E-mail address

                                                Cell #

                                                Work #

                Extreme? Perhaps. Transparent? Definitely! Now there is no question that some deals will be lost as you get “shopped”, but price has never built loyalty or referrals the way an honest reputation has. So will you continue to stick your heard in the sand and think a couple emotion-building phrases will “Sell” your consumer or they’ll be so “wowed” by the balloons on the cars they’ll forget to read the contract? Why not provide the total experience and have them know it’s not a show with smoke and mirrors but rather an honest attempt to create a fun environment for what should be a joyous occasion vs. a painful grind. If this is to extreme for you or you’re the ISM that the egotistical manager (who thinks you can tell them what they want to hear just to get them in!) won’t empower to provide information like this, then I will be saddened by your eventual demise.

                Embracing transparency results in more volume, more Dealership loyalty and increased referrals. Whether it’s “word of mouth” or “word of mouse” its reputation you can no longer ignore.

Bryan Armstrong has a very successful background in Automotive and has filled every position in the Dealership from Lot Tech to Corporate Trainer/Director of a large Group. He is currently e-Commerce Director of Menlove Toyota Scion and can be reached at bamarketing@q.com or on his cell at 435-862-1966.

In the world of Professional sports, teams will spend hours researching how their opponents will react in any given situations. They watch film, update themselves on individual player’s conditions and personal lives and proclivities and look to extol any benefit possible from any information gleaned.

Recently Larry Bruce published a fascinating study based on watching hours of “game film” as to how consumers research buying a vehicle. I do not claim to have his level of expertise nor am I here to talk about the consumer side of car buying rather I would ask, are your people using all the tools available to them with the same acuity their clients are?

While the debate rages over lead response time, method, pricing and buying-cycle time frame, I would suggest that we as an industry are overlooking that simple fact that buying any vehicle, New or used, is a highly personal decision. Setting a standardized response process will only let you achieve status quo results. Current propaganda would have us believe that an I.S.M can handle 80-100 leads per month. I would suggest that to do it effectively no more than 60 is optimum.

Why is it that we recognize and preach constantly to a floor salesperson that they need to slow down, fact find and build rapport before showing a vehicle, getting to a write-up or asking for the sale yet I.S.M.’s are told to get out a quote within 1-15 minutes and try to get a commitment for a customer to get in the store? Sure, establishing contact is important, but building value is closing.

When a lead comes in, whether it’s an organic click or 3^rd party (a debate of value on which I’m not going to touch here) a few key actions should take place.

1. Break It Down:

In the world of Professional sports, teams will spend hours researching how their opponents will react in any given situations. They watch film, update themselves on individual player’s conditions and personal lives and proclivities and look to extol any benefit possible from any information gleaned.

Recently Larry Bruce published a fascinating study based on watching hours of “game film” as to how consumers research buying a vehicle. I do not claim to have his level of expertise nor am I here to talk about the consumer side of car buying rather I would ask, are your people using all the tools available to them with the same acuity their clients are?

While the debate rages over lead response time, method, pricing and buying-cycle time frame, I would suggest that we as an industry are overlooking that simple fact that buying any vehicle, New or used, is a highly personal decision. Setting a standardized response process will only let you achieve status quo results. Current propaganda would have us believe that an I.S.M can handle 80-100 leads per month. I would suggest that to do it effectively no more than 60 is optimum.

Why is it that we recognize and preach constantly to a floor salesperson that they need to slow down, fact find and build rapport before showing a vehicle, getting to a write-up or asking for the sale yet I.S.M.’s are told to get out a quote within 1-15 minutes and try to get a commitment for a customer to get in the store? Sure, establishing contact is important, but building value is closing.

When a lead comes in, whether it’s an organic click or 3^rd party (a debate of value on which I’m not going to touch here) a few key actions should take place.

1. Break It Down:

The World is flat, the Sun revolves around the Earth and a Toyota Franchise in mid-February is not the smart move if changing employers. These statements have one thing in common; all were accepted as fact by a certain number of the populace, some of those within my own sphere of peers and family, at some point in history.

As I weighed the decision to make a career change and go back to the Store I began this crazed obsession I have for the car industry in over a decade ago, there were many who believed me to be as blind and short-sighted as the scholars of old that held on to what now appear to be ludicrous beliefs. What impelled me then and motivates me daily is the potential and opportunity that abound in this wonderful profession and is either ignored or believed unattainable by the status quo.

Menlove Toyota Scion in Bountiful, Utah is located at the base of the Wasatch Mountains and just North of Salt Lake city. A family owned business for over 50 years; they have built a reputation as “the last of the little guys” in a market overrun by corporate entities such as the Ken Garff and Larry Miller groups. Yet without a lot of overhead to pay for non-revenue producing corporate offices, they are able to sell for less and maintain a personal relationship with many of their customers.

When I last walked the lot there as a salesperson, they had a monthly sales volume of roughly 500-600 units per month. Yet when I walked in on February 15, January had only yielded approximately 90 units. What had changed? Why the decline? They had just recently completed a state-of-the-art facility and had a customer base of well over 50,000 people. As I walked into my “new” Store, I greeted many familiar faces and in a private aside, inquired as to their thoughts on the issue. “The banks aren’t buying. The recall has hurt us. The economy is down.” Many had explanations that were accepted as fact and reflected what the mainstream media and many others both in and out of the car business were saying.

The first thing to do, as is the case with any triage situation, was to stop the bleeding. With 3 G.M.’s inside a 2 year period, the Store was struggling with an identity crisis. Many Vendors and solutions had been attempted and there was duplication of Services and non-utilized Partnerships across every Department. I began the arduous task of analyzing the processes and vendors of every Dept. and finding the opportunities that existed yet were being overlooked.  

After analyzing the R.O.I. and effectiveness of all vendors, I began to cancel services that were either ineffective, duplicated or, as was sadly most often the case, underutilized or misunderstood by the staff. I found most of the Companies to be understanding and willing to do what was best for our store though not necessarily their bottom line. They understood the constraints of the situation and held, like me, to the hope that there may be a partnership opportunity in the future.

Standardized processes were implemented across every Department i.e. Ten Steps to the Sale, F&I Menu Selling and Vehicle Inspection Sheets completed and stapled to every repair order. Nothing that would “shake the world” as new or innovative but rather a standard by which all could refer to and be measured against. Sadly, some fine people were unable to adapt to or meet this new found standard and we parted company. It saddened me but I have learned that in order to succeed everyone needs to embrace and support the same standard and that the value of an employee cannot be measured in simply the number of years they have been cashing paychecks (thanks Dave Anderson). All staff is trained regularly and the results of their work constantly inspected. Best of all, the core of this inspection and accountability comes from their peers and middle management who have “bought in”.

The end result is, the Store has been up 150% Y: Y every month since March and C.S.I., C.I.T. and every other key success indicator continue to climb as well.

Service sells and communication is king in every industry. If I could suggest one thing, put pride aside and take another look at everything you “know” or hire someone to do it for you. You may find a world of opportunity right in front of you. Good luck!!

I continue to be just “an average car guy” and know that every day I can learn new things and am invigorated by the prospect of such. Most of all I have a deep commitment to and love of others success. After all it ensures my own.

  Bryan Armstrong is currently e-Commerce Director of Menlove Toyota Scion. An Industry veteran who has successfully ran multiple Dealerships, he was named “Most Innovative Dealer Group e-Commerce Director” at Digital Dealer 2009 and serves on VinSolutions National Dealer Advisory Board. He counts his awesome family as his greatest success.

The World is flat, the Sun revolves around the Earth and a Toyota Franchise in mid-February is not the smart move if changing employers. These statements have one thing in common; all were accepted as fact by a certain number of the populace, some of those within my own sphere of peers and family, at some point in history.

As I weighed the decision to make a career change and go back to the Store I began this crazed obsession I have for the car industry in over a decade ago, there were many who believed me to be as blind and short-sighted as the scholars of old that held on to what now appear to be ludicrous beliefs. What impelled me then and motivates me daily is the potential and opportunity that abound in this wonderful profession and is either ignored or believed unattainable by the status quo.

Menlove Toyota Scion in Bountiful, Utah is located at the base of the Wasatch Mountains and just North of Salt Lake city. A family owned business for over 50 years; they have built a reputation as “the last of the little guys” in a market overrun by corporate entities such as the Ken Garff and Larry Miller groups. Yet without a lot of overhead to pay for non-revenue producing corporate offices, they are able to sell for less and maintain a personal relationship with many of their customers.

When I last walked the lot there as a salesperson, they had a monthly sales volume of roughly 500-600 units per month. Yet when I walked in on February 15, January had only yielded approximately 90 units. What had changed? Why the decline? They had just recently completed a state-of-the-art facility and had a customer base of well over 50,000 people. As I walked into my “new” Store, I greeted many familiar faces and in a private aside, inquired as to their thoughts on the issue. “The banks aren’t buying. The recall has hurt us. The economy is down.” Many had explanations that were accepted as fact and reflected what the mainstream media and many others both in and out of the car business were saying.

The first thing to do, as is the case with any triage situation, was to stop the bleeding. With 3 G.M.’s inside a 2 year period, the Store was struggling with an identity crisis. Many Vendors and solutions had been attempted and there was duplication of Services and non-utilized Partnerships across every Department. I began the arduous task of analyzing the processes and vendors of every Dept. and finding the opportunities that existed yet were being overlooked.  

After analyzing the R.O.I. and effectiveness of all vendors, I began to cancel services that were either ineffective, duplicated or, as was sadly most often the case, underutilized or misunderstood by the staff. I found most of the Companies to be understanding and willing to do what was best for our store though not necessarily their bottom line. They understood the constraints of the situation and held, like me, to the hope that there may be a partnership opportunity in the future.

Standardized processes were implemented across every Department i.e. Ten Steps to the Sale, F&I Menu Selling and Vehicle Inspection Sheets completed and stapled to every repair order. Nothing that would “shake the world” as new or innovative but rather a standard by which all could refer to and be measured against. Sadly, some fine people were unable to adapt to or meet this new found standard and we parted company. It saddened me but I have learned that in order to succeed everyone needs to embrace and support the same standard and that the value of an employee cannot be measured in simply the number of years they have been cashing paychecks (thanks Dave Anderson). All staff is trained regularly and the results of their work constantly inspected. Best of all, the core of this inspection and accountability comes from their peers and middle management who have “bought in”.

The end result is, the Store has been up 150% Y: Y every month since March and C.S.I., C.I.T. and every other key success indicator continue to climb as well.

Service sells and communication is king in every industry. If I could suggest one thing, put pride aside and take another look at everything you “know” or hire someone to do it for you. You may find a world of opportunity right in front of you. Good luck!!

I continue to be just “an average car guy” and know that every day I can learn new things and am invigorated by the prospect of such. Most of all I have a deep commitment to and love of others success. After all it ensures my own.

  Bryan Armstrong is currently e-Commerce Director of Menlove Toyota Scion. An Industry veteran who has successfully ran multiple Dealerships, he was named “Most Innovative Dealer Group e-Commerce Director” at Digital Dealer 2009 and serves on VinSolutions National Dealer Advisory Board. He counts his awesome family as his greatest success.