Henry Day Ford
Dealer fees
We are currently doing some mystery shopping to compare several things at our dealership to other dealerships. The main intent of the mystery shopping is to compare processes, level of training in sales people, and pricing. As we have done this we have found that, although we are really aggressive on pricing and trade allowances, we are definitely on the high side when it comes to fees.
The 2 fees I'm referring to are probably standard fees at the majority of dealerships. We charge a documentation fee and an additional fee for vehicle theft registration (VTR) or "etching". I'm not going to tell you what we charge for those for the fact that I want to see where everyone else comes in at and I don't want anyone judging us :). We are a large Ford franchise, so I want to make sure we are comparing apples to apples. If you respond back to my post, let me know what you charge for both fees or if you even have both fees. Also, if you don't have VTR or etching, what do you charge and what is the product? It would be great if you mention the size of the store that you work at and whether or not it is a new franchise. Hope to hear some good feedback.......
Henry Day Ford
Dealer fees
We are currently doing some mystery shopping to compare several things at our dealership to other dealerships. The main intent of the mystery shopping is to compare processes, level of training in sales people, and pricing. As we have done this we have found that, although we are really aggressive on pricing and trade allowances, we are definitely on the high side when it comes to fees.
The 2 fees I'm referring to are probably standard fees at the majority of dealerships. We charge a documentation fee and an additional fee for vehicle theft registration (VTR) or "etching". I'm not going to tell you what we charge for those for the fact that I want to see where everyone else comes in at and I don't want anyone judging us :). We are a large Ford franchise, so I want to make sure we are comparing apples to apples. If you respond back to my post, let me know what you charge for both fees or if you even have both fees. Also, if you don't have VTR or etching, what do you charge and what is the product? It would be great if you mention the size of the store that you work at and whether or not it is a new franchise. Hope to hear some good feedback.......
3 Comments
Waikem Auto Family
I would be cautious for anyone to post on this without consent from your store's attorney/dealer principal. That being said...The State of Ohio allows up to $250 to be charged for Dealer Doc Fees, and most dealers charge the full amount. That is the only fee our dealership charges. The State charges title and plate fees up to $40.
Faulkner Nissan
Pennsylvania law says we are permitted to charge up to $131 for a Documentation Fee. There are of course, other fees charged by the state (for example, there's a $5 tire tax on any new vehicle - unless it doesn't have a spare tire, then it's only $4). With all the fees, a typical fee total is between $180-$220 depending on if the customer needs a new license plate, if the customer is financing and if it's a new or a used car (the tire tax does not apply to used vehicles). To transfer an existing license plate, it's only $6, while if a customer needs to be issued a new plate, it's a $10 plate fee & a $36 registration fee. We don't put any kind of etch on our vehicles pre-purchase, rather that option is presented to the customer with our protection program during the F & I turn. I work for a dealer group which has 9 new car franchises - a few our our stores sell 100+ new a month, and some sell around 30 new.
Dealertrack Technologies
I am no longer in retail; however I am in dealerships daily. In Florida I see dealer doc fees in the $599 range often. Having said that, It is not common to force a customer to purchase, in this case a hard add (line 1), a product in order to buy a car. I have worked for 2 large dealer groups and consulted with dealers over a 5 state area. I applaud your effort to understand your business and develop a plan.
Henry Day Ford
2 Deep
We are currently trying to put together a plan to where we are 2 deep in every position. Meaning each key position at the dealership is backed up by 2 people. They are to be selected and eventually train for that position. Once they are done training, they don't automatically get the position. They will get the position when something opens up (someone quits or gets fired, we grow to where we need the help). They will also be used to fill in if someone gets sick and is out for a while or goes on vacation.
I love the idea and I think it is ultimately help us grow and ensure we don't have "down time" if we lose somebody. I think it is going to be harder to implement than we think it is going to be. Although we haven't started yet, I'm guessing the following might be some of the challenges that we are going to face:
-Selecting the people. Some people aren't quite ready to be promoted to certain positions and you can't exactly hire someone from the outside for a position that isn't available.
-Getting people's hopes up and potentially tubing them out if they don't get the position.
-Taking the time to properly train them. We are already very busy and it will take quite a bit of time to train each position if we do it the right way.
I'm sure there are some other minor challenges that we may face along the way but I'm guessing those will be the biggest ones that we will have to overcome. Just curious, is there anybody out there that works at a store that has successfully set this up? If so, what were the challenges that you had and how were you able to work through them?
2 Comments
Reputation Revenue
Hallelujah! Bryant, this may sound cliche, but "YOU just made my day". A typical discussion around succession planning for a dealership is had behind the owners closed door. The conversation begins something like... "Which of my children are going to take over the business?" This mindset is limiting at best, and is crippling to most dealers today. Succession planning is a process for identifying and developing internal people with the potential to fill key business leadership positions in the company. Let's face it, the retail automotive talent pool is extremely shallow. How your dealer has decided to handle talent development deserves a huge applaud. Your turnover cost will decrease, your employee engagement will rise, your talent acquisition will become easier - and most importantly, your customers will love you more for it. I don't know of any dealership who is doing what you plan to do, but I would love to help you and your team figure it out. There will be no pitch. No selling. Just pure authentic helpfulness. Let's collaborate :: Renee Stuart (503) 303-4699
DrivingSales
Bryant: Not an exact parallel but I know what you're trying to do. Before DrivingSales I was a Branch Manager at one of Manheim's salvage auction facilities and I was able to accomplish what you're suggesting. The key, as I learned, was scheduling the cross training and having deadlines. Without this, everyone was "too busy". The key motivation was long-term success with the company. The more you know, the more valuable you become. In fact, many of these folks ended up being recruited by Manheim corporate to train other locations because they ended up being so knowledgeable across the board. Something we were very proud of. My advice . . . don't do is half-ass. Jump into it feet first (with a schedule/plan in place) and make it happen.
Henry Day Ford
2 Deep
We are currently trying to put together a plan to where we are 2 deep in every position. Meaning each key position at the dealership is backed up by 2 people. They are to be selected and eventually train for that position. Once they are done training, they don't automatically get the position. They will get the position when something opens up (someone quits or gets fired, we grow to where we need the help). They will also be used to fill in if someone gets sick and is out for a while or goes on vacation.
I love the idea and I think it is ultimately help us grow and ensure we don't have "down time" if we lose somebody. I think it is going to be harder to implement than we think it is going to be. Although we haven't started yet, I'm guessing the following might be some of the challenges that we are going to face:
-Selecting the people. Some people aren't quite ready to be promoted to certain positions and you can't exactly hire someone from the outside for a position that isn't available.
-Getting people's hopes up and potentially tubing them out if they don't get the position.
-Taking the time to properly train them. We are already very busy and it will take quite a bit of time to train each position if we do it the right way.
I'm sure there are some other minor challenges that we may face along the way but I'm guessing those will be the biggest ones that we will have to overcome. Just curious, is there anybody out there that works at a store that has successfully set this up? If so, what were the challenges that you had and how were you able to work through them?
2 Comments
Reputation Revenue
Hallelujah! Bryant, this may sound cliche, but "YOU just made my day". A typical discussion around succession planning for a dealership is had behind the owners closed door. The conversation begins something like... "Which of my children are going to take over the business?" This mindset is limiting at best, and is crippling to most dealers today. Succession planning is a process for identifying and developing internal people with the potential to fill key business leadership positions in the company. Let's face it, the retail automotive talent pool is extremely shallow. How your dealer has decided to handle talent development deserves a huge applaud. Your turnover cost will decrease, your employee engagement will rise, your talent acquisition will become easier - and most importantly, your customers will love you more for it. I don't know of any dealership who is doing what you plan to do, but I would love to help you and your team figure it out. There will be no pitch. No selling. Just pure authentic helpfulness. Let's collaborate :: Renee Stuart (503) 303-4699
DrivingSales
Bryant: Not an exact parallel but I know what you're trying to do. Before DrivingSales I was a Branch Manager at one of Manheim's salvage auction facilities and I was able to accomplish what you're suggesting. The key, as I learned, was scheduling the cross training and having deadlines. Without this, everyone was "too busy". The key motivation was long-term success with the company. The more you know, the more valuable you become. In fact, many of these folks ended up being recruited by Manheim corporate to train other locations because they ended up being so knowledgeable across the board. Something we were very proud of. My advice . . . don't do is half-ass. Jump into it feet first (with a schedule/plan in place) and make it happen.
Henry Day Ford
Internet closing percentages
We have been making some changes to our internet process lately. We are evaluating our closing percentages to make sure we are capturing enough deals during each phase of the buying cycle. We do a really good job tracking accurate data, so I feel like our closing percentages are close to accurate.
The problem that we are having is that it has been 5 years since we have done a complete overhaul of our internet process. We feel like the data for national averages that we collected back in 2006 is potentially less accurate than it once was. Here are the #'s that we have according to Polk reports:
- 56% of new vehicle leads will purchase a new vehicle
- 42% will purchase a vehicle in less than 30 days
- 16% will buy between 31-60 days
- 10% will buy between 61-90 days
- 32 % will buy in 91 days or more
I was hoping you guys could clarify to see if those closing percentages are still accurate. Also, I had a few more questions:
At what point in the buying cycle to they eventually switch interest to a used vehicle?
What % of the leads actually buy the same make/model that they inquired about?
Do you guys offer any giveaways at any point of the internet process to entice them to make a decision sooner?
No Comments
Henry Day Ford
Internet closing percentages
We have been making some changes to our internet process lately. We are evaluating our closing percentages to make sure we are capturing enough deals during each phase of the buying cycle. We do a really good job tracking accurate data, so I feel like our closing percentages are close to accurate.
The problem that we are having is that it has been 5 years since we have done a complete overhaul of our internet process. We feel like the data for national averages that we collected back in 2006 is potentially less accurate than it once was. Here are the #'s that we have according to Polk reports:
- 56% of new vehicle leads will purchase a new vehicle
- 42% will purchase a vehicle in less than 30 days
- 16% will buy between 31-60 days
- 10% will buy between 61-90 days
- 32 % will buy in 91 days or more
I was hoping you guys could clarify to see if those closing percentages are still accurate. Also, I had a few more questions:
At what point in the buying cycle to they eventually switch interest to a used vehicle?
What % of the leads actually buy the same make/model that they inquired about?
Do you guys offer any giveaways at any point of the internet process to entice them to make a decision sooner?
No Comments
Henry Day Ford
Getting a perfect survey
Our dealership has always done really well with regard to Ford customer satisfaction surveys. We train our salespeople regularly on the importance of doing a proper delivery and explanation of the survey and expect them to do it on every single new car sold. In addition, we require them to make a 1 and 2 week follow up call to remind them of the importance of the survey and how it is graded. I know we can never have it done perfectly 100% of the time, but I feel pretty confident that our salesguys do a good job the majority of the time.
With all that said, we still get customers that, no matter what we do or say, are never pleased and refuse to give us a completely satisfied comment. Which pisses me off! I swear they do it just to spite us. Anyway, I have heard about other dealerships bribing their customers in various ways to give them a perfect survey. Or, they bribe them to bring the unfilled survey into the dealership and then they will fill it out for the customer. We have never tried anything like that. I know we have some room for improvement, so I think it might be worth looking into some different ideas.
What have you guys tried that has worked? I want to hear about ideas that are a bulletproof way to get a perfect survey. Let me know what you guys recommend....
No Comments
Henry Day Ford
Getting a perfect survey
Our dealership has always done really well with regard to Ford customer satisfaction surveys. We train our salespeople regularly on the importance of doing a proper delivery and explanation of the survey and expect them to do it on every single new car sold. In addition, we require them to make a 1 and 2 week follow up call to remind them of the importance of the survey and how it is graded. I know we can never have it done perfectly 100% of the time, but I feel pretty confident that our salesguys do a good job the majority of the time.
With all that said, we still get customers that, no matter what we do or say, are never pleased and refuse to give us a completely satisfied comment. Which pisses me off! I swear they do it just to spite us. Anyway, I have heard about other dealerships bribing their customers in various ways to give them a perfect survey. Or, they bribe them to bring the unfilled survey into the dealership and then they will fill it out for the customer. We have never tried anything like that. I know we have some room for improvement, so I think it might be worth looking into some different ideas.
What have you guys tried that has worked? I want to hear about ideas that are a bulletproof way to get a perfect survey. Let me know what you guys recommend....
No Comments
Henry Day Ford
Reconditioning costs
1 Comment
Condition HUB
Hi Bryant,
We have a Recon Software that you might be interested in to help you manage the process and account for the vehicles location no matter where they are in the process. Let me know if you would like a demonstration or a free trial of our product. I am posting this on several feeds but we only have a few of the free trials left to offer so hit me up as soon as you can, if you're interested.
Scott
Henry Day Ford
Reconditioning costs
1 Comment
Condition HUB
Hi Bryant,
We have a Recon Software that you might be interested in to help you manage the process and account for the vehicles location no matter where they are in the process. Let me know if you would like a demonstration or a free trial of our product. I am posting this on several feeds but we only have a few of the free trials left to offer so hit me up as soon as you can, if you're interested.
Scott
3 Comments
Craig Waikem
Waikem Auto Family
I would be cautious for anyone to post on this without consent from your store's attorney/dealer principal. That being said...The State of Ohio allows up to $250 to be charged for Dealer Doc Fees, and most dealers charge the full amount. That is the only fee our dealership charges. The State charges title and plate fees up to $40.
Megan Barto
Faulkner Nissan
Pennsylvania law says we are permitted to charge up to $131 for a Documentation Fee. There are of course, other fees charged by the state (for example, there's a $5 tire tax on any new vehicle - unless it doesn't have a spare tire, then it's only $4). With all the fees, a typical fee total is between $180-$220 depending on if the customer needs a new license plate, if the customer is financing and if it's a new or a used car (the tire tax does not apply to used vehicles). To transfer an existing license plate, it's only $6, while if a customer needs to be issued a new plate, it's a $10 plate fee & a $36 registration fee. We don't put any kind of etch on our vehicles pre-purchase, rather that option is presented to the customer with our protection program during the F & I turn. I work for a dealer group which has 9 new car franchises - a few our our stores sell 100+ new a month, and some sell around 30 new.
Jay Lynch
Dealertrack Technologies
I am no longer in retail; however I am in dealerships daily. In Florida I see dealer doc fees in the $599 range often. Having said that, It is not common to force a customer to purchase, in this case a hard add (line 1), a product in order to buy a car. I have worked for 2 large dealer groups and consulted with dealers over a 5 state area. I applaud your effort to understand your business and develop a plan.