One of the keynote speakers for DSES 19, Clint Pulver spoke in detail about the types of managers we encounter. One of those managers is the “removed” manager. The one that can wreak chaos on your dealership. A few years ago I wrote an article “Top Reasons to Avoid the Coin-Operator State of Mind: Machines Don't Have Emotions” the idea that executive management can in many ways set the tone for their managers. That tone, if not managed in an effective way can and will cause for turn-over. 

More importantly, as we have to cultivate a new culture, one that attracts the right talent - it is imperative that we manage our managers effectively - where we are responsible for curating an environment that fosters creativity, leadership, and growth. 

How have you restructured your management style to be in alignment with your team? 

One phrase we often hear is, "I want to empower my managers to make their own decisions if they cannot make their own decisions than they are not the right manager." This is a powerful statement; one that should be the case on the dealer level when it comes to sales managers making decisions. However, is this really the case? In that, while it is the right frame of mind - do the GM' s/Owners really allow their managers to make the decisions? Cause if not, then why do we have sales managers if they cannot make their own decisions? 

Mean What You Say. Stop Micro-Managing. It is Not A One Man Show. 

I have often been in meetings where the GM would offer that they want the sales managers to make their own decisions. Everything regarding inventory purchases, trades, and/or deals. Yet when it came time to make those decisions, the GM would backtrack, and get involved in almost every deal. In which case, they'd disagree with the sales managers' train of thought. In doing so, as one could imagine, it made making those decisions that much more difficult as they'd worry about whether or not the GM would approve. Of course, if the sales managers are making bad decisions that could wind up being incredibly costly, then, yes, you need to look at your management team. However, if the decision is a good one, just not your style, then you are dismantling your team, and discrediting them to their employees. All of which can send the wrong message, and in some cases can wind up, meaning that their respect is lost if they realize that the sales managers cannot make decisions. 

Teach Them How to Approach the Decision Making Process. But Do So Privately. Have Respect. 

There is nothing wrong with explaining how to approach the decision-making process with your sales managers. In fact, it is encouraged - in doing so, you can confidently allow your sales managers to make the necessary decisions. Otherwise, your sales managers will not be on the same page with you or with their other managers. And while not all decisions will be the way you would have approached the situation, you can use them as an opportunity to train your managers. But if you do not take the time to work with your sales managers - working with them on how to approach the decision-making process - you cannot expect them to perform. And if you make all of the decisions and or undermine them, it will only create a chaotic, unproductive department. 

Bottom Line: making deals, purchasing inventory, or appraising trades is not easy. Even with all of the tools we have available, I cannot tell you how many times I have seen managers call their friends at other dealers asking them what they should appraise the vehicle for. In which case, that might not be the best way to do it. And while data is not always one hundred percent accurate, it can help you in making those tough decisions. Lastly, if you genuinely want your sales managers to make decisions on the dealer level, let them. Micro-managing them in their every decision sends the wrong message. A message that can - as mentioned above - wind-up losing their respect with their employees. In that, if the employees realize that the sales managers are otherwise unable to call the final shots, they will just go to the GM for every deal bypassing management. As for how the decisions are made, as a leader, you need to get with your sales managers, privately and have a united front in how the decisions are to be made. This way, you are all on the same page, collectively. 
 

The CRM is arguably one of the most essential tools for the dealership other than the DMS. However, one thing to note and consider are all of the hidden fees associated with the CRM; everything from integration fees (from the DMS) and third-party vendors. More importantly, too, is how the third party tools are integrated into the CRM. Such as but not limited to phone call tracking, trade-in tools, texting, and email marketing, to name a few. That said, here are two things to consider when it comes to the vendor integration fees. 

The Cost to Connect the DMS. 

The CRM is often connected to the DMS, and the purpose of the DMS being connected is so that the sales and fixed-ops transactions can be sent to the CRM. Having that data in the CRM is valuable for many reasons. One of the top reasons to have the DMS connected is so that you are easily able to pull reporting on your customers total spend. In addition to being able to effectively market to those customers. In order to do all of this, however, you generally have to pay a fee to so that the systems communicate. And depending on both the CRM or DMS system you use, the fees can quickly add up. This is also a fee you pay monthly, which can be as much as $600 a month! Take a minute to see what you are spending and make sure that all of the data is coming over correctly. The one data point that is imperative to have sent over to the CRM is the DMS ID of the sales consultant or service advisor that completed the transaction. As a result of doing that, you can easily see what they contributed to individually. More often than not, you will see "house deal" in the CRM regarding a sold deal or service RO. The main reason this occurs is due to the DMS ID not being setup in the CRM. Or if the sales consultant has not yet obtained their sales license. And in many cases, if you try and 'add' or 'change' the DMS ID in the CRM, by the next morning it reverts back to the 'house deal' DMS ID. This is because  the DMS imports data nightly, which is another reason why your reports might not be accurate and or showing multiple 'split deals' as it is splitting a deal with both ID's. 

Are Third-Party Integrations Always Necessary? 

This is a hard question to ask. I offer that because even if the vendor is connected to the CRM - having paid the monthly fee - does not mean that you will be able to use the tool in the way you thought. Namely, a lot of the vendor integrations are not always able to function as they would if you were using the tool separately. For example, two of the biggest third-party integrations used today on the dealer level are inbound call tracking and trade evaluations. When it comes to integrating inbound phone calls, it is essential as most vendors are able to ensure that the inbound call is linked to the customer's profile. However, when it comes to managing both the call and reporting, it is often easier to accomplish directly in their platform.  Where some of the call tracking vendors do not relay any information added and or changed into their system from the CRM. For example, it is much easier in many cases to listen to the sales calls in the CRM, no? But if your GM were to review the "calls reviewed" report from the platform - not taking into consideration that you listened to them in the CRM - then it can cause for frustration on both ends. That said, while it might cost you money to integrate the vendor, it is worth it as it is essential to have the calls linked to the customer. Making it much easier for your BDC Agents, Sales Consultants, and Sales Managers to manage the customer correspondence. 

With regards to the trade-evaluations, in many cases, the sales consultant still has to use the third party-app to in-put the trade information, which is then sent over to the CRM. That still causes there to be double data entry.  As a result, most sales consultants are required to enter the trade-in information manually into the CRM tool at which point the sales manager can use that data - in the CRM - to run the trade evaluation. That said, it comes down to a personal choice, and it is still a good idea to have it integrated into the CRM as you will then have accurate data regarding the trade. Not to mention, as you know - especially for those who print deal packets from the CRM - it is imperative that the trade-in information is correct. Anything to make this easier and more accurate is the way to go. 

Bottom Line: While we cannot get out of the fees we pay to have a vendor integrated, we do need to make sure that all of the data we need to be pushed over is pushed correctly. In addition to making sure that for those with third-party integrations are not just setup correctly, but that you are able to easily manage the integration. Being able to access the elements of the platform without having to use both the CRM and the vendor platform. 

What Are Some of the Tools That You Use But Are Not Integrated Into the CRM? What is holding you back from having the tool integrated? 

No matter the business model, your dealership has evolved several of your roles over the years everything from dealers adding business development centers, exchange managers in service, product consultants, and marketing managers to name a few. However, the one position that has not often been discussed or evolved is the GM position -  a position that manages all departments on the dealer level;  a position that can enact on making changes happen. 

So we have to ask ourselves, how as the GM position evolved? Has the position evolved enough? Can a GM effectively manage the entire operation as each departments goals and tasks have increased to sustain your dealer's profitability? 

So What Exactly is the Role of the GM on the Dealer Level? 

According to autojobcareers.com, The automotive dealership General Manager ensures the profitability of the dealership by overseeing the various departments which include variable operations (sales & financing), fixed operations (service & parts), and the business office (accounting & administration).  Duties of the general manager include, but certainly not limited to, planning, motivating, and coordinating the dealership's management through leadership and solid business practices. 

That Said Can A GM Effectively Manage the Various Departments On A Dealer Level With the Challenges A Dealer Faces in Today's Market? 

This is not an easy question to approach nor is the purpose of this question - by any means - to denounce the efforts of a traditional GM role. Instead, the purpose of asking this bold question is to understand better how a GM can approach the various departments — ensuring that each department is successful and generating the revenue needed to sustain the bottom line. 

One of the concerns with having one role overseeing all of your dealers departments is their inability to manage the day-to-day operations effectively. In which case, their managers while able to make many of the decisions are unable to execute on many without the GM's approval. So as a result, that can in many cases, slow down their operations. For example, if the service manager wanted to execute a marketing plan spending $1,500 - in many instances, s/he would have to seek the approval of the GM. If the GM were otherwise unavailable and unable to make the final decision - or worse, it took two to three days to make a decision - the delay could have an impact on the success of the campaign. And while this is certainly one example, there are many other examples. 

Another key issue is the new car and used car sales. Each department has its own business model; a model that is managed by your sales managers. However, it is no secret that many of the decisions made by the sales managers have to be approved exclusively by the dealers GM. As a result, this can hinder productivity and performance. Namely, given that many of the sales managers - or GSM's - are otherwise unable to make final decisions when it comes to purchasing inventory or managing the dealer's department they are unable to perform at the level they need too necessarily. 

Imagine empowering your sales managers, GSM's, and fixed-ops managers by allowing them to make the necessary decisions on the dealer level. The idea that you are allowing them to run their respective departments effectively. Taking out a potential roadblock; one that can wind up costing the dealer thousands of dollars in lost revenue. 

So Without A GM, What Does Your Dealer Look Like? How Does this Even Work? 

Several dealers have executive vice presidents who are to oversee all of the GM's. All of which sounds great, no? The idea that the EVP can assist the GM's in making the decisions necessary to carry out the business plans. The problem, however, with this model is that the GM's are not involved in the day-to-day operations. In which case, when having meetings to discuss processes, procedures, and or the changing of a department, it is done without the managers in fixed-ops,  sales or with your controller (COO; the one who handles your dealerships finances).  This can have a negative impact on how they approach the decisions, as many decisions are often in alignment with the bottom line in mind. Moreover, while the bottom line is of the most importance; the way you approach the bottom line has to be in alignment with the way your managers approach their departments, respectively. It is challenging to do so without the managers being involved as they are the ones managing the day-to-day operations, which as a direct impact on the success of said proposed changes. 

One of the ways to approach this is by having directors. Each dealership would have a director for both sales, fixed-ops, and the Controler (a new title would be COO). The purpose of this position is to manage the sustainability and profitability of each of your dealer's departments. The directors also work closely with each of the sales and service managers. At which point, the directors report to the EVP. In which case, instead of one person,  the GM reporting to the EVP, multiple people are reporting to that role. People who can effectively enact changes on the dealer level. For those who do not have EVP's, you can have the directors report directly to the CEO. What this does is bridge the communication gaps between the CEO and the employes (your managers) who are directly responsible and accountable for maintaining the dealer's bottom line. 

The Dealer Can Effectively Save Money By Restructuring With Directors and Removing the GM Position. In-turn, Increasing Your Revenue Adding to the Bottom Line. 

The average GM salary (which of course depends on the market) makes roughly $217,000 a year between their salary and bonuses. If you were to restructure and pay a director position for fixed-ops, sales, and your controller (or better yet, a COO), with both the sales and fixed-ops' managers in the six-figure bracket (which they are already most likely making) - you now have three positions that can make executive decisions reporting to either the EVP or CEO. Directors who are then involved in not just a day to day operations, but are also able to make decisions empowering their departments to increase revenue for the dealerships bottom line. 

Namely, instead of paying one position a high six-figure salary, you now have three positions making six-figures — two of which who are already most likely in the six-figure bracket. As a result, this not only can save your dealership a six-figure salary, it can increase your dealer's performance, collectively. All of which adds to the already thinning bottom line. 

The Bottom Line: the purpose and intentions of this article are by no means to denounce the efforts of the GM's. However, we have to ask ourselves how the GM position has evolved and whether or not one person can effectively manage all of the departments collectively. Knowing that the profit margins are continuing to thin, and every decision made on the dealer level has a direct impact on your profitability. The idea that if you were to have three key directors on the dealer level who are closely involved in the day-to-day operations manage their departments exclusively - it would not just empower them, but it would have a positive impact on the bottom line. 

Has Your Executive Team Restructured the GM Position to Increase Profitability? Have You Considered A Director Role On the Dealer Level? 
 

Anything to make the process easier for the sales consultant is a win-win, and there is a lot of conversation surrounding the usage of tablets versus desktops. In many cases, too, the OEM’s have apps and resources for the dealerships - using a tablet - when it comes to delivering new vehicles and service walk-around, to name a few. That said, the sales consultant is using both their computer and tablet, which has posed the question: can the sales consultants just use a tablet during the entire process? 

Here are the top things to consider when discussing making the switch! 

Why Are You Making the Switch? How Does this Impact the Sales Team Much Less the Sales Process? 

One of the biggest buzz words in the industry in the last few years has been “transparency.” The idea that we need to ensure that the customer has a clear understanding of what we do; namely, how the sales process is approached on the dealer level. All of which sounds great, but more importantly, how do we execute that on the dealer level. 

So you have to ask yourself “why are we making the switch,” as simply switching to a tablet does not by any means make it easier to complete the sales process. Much less offer the customer the experience we are aiming for! 

One of the ideas behind the usage of a tablet was the idea that the customer is not sitting at a desk with the sales consultant plugging away at their computer. Instead, the sales consultant is more engaged with the customer as they are going through the process: everything from selecting the vehicle to test drive, to reviewing extended warranties, and service contracts. 

The problems that can arise with this approach, however, is the usability of the tablet which is outlined below. 

Not All CRM’s Function Well On Mobile. 

There is nothing worse than trying to pinch and zoom on the tablet to use the CRM when entering a customer in and or working the sales process. And while many CRM’s have a mobile app as a part of their platform, it does not mean that it functions well. In fact, you will find that a lot of the CRM apps lack features that are otherwise available on the desktop (web) version. The core functions that your team needs to be able to access on the mobile app are quoting, emails, customer profiles, and work-flow management. Otherwise, as mentioned above, it becomes quite cumbersome to try and manage the sales process solely using the tablet. 

One thing that dealers are doing to convey the concept of being ‘mobile’ is by giving their sales teams laptops instead of desktops. In which case, while they are not using the tablet for the entire sale process, they are at least able to use the laptop, enabling them to work with the customer from wherever in the dealership. 

You Have to Have Wi-Fi that Works. There is Nothing Worse than Not Having Reliable Service. 

With so many aspects of the sales process being digital, using everything from your phone to a tablet, it is essential to have good, quality internet service. I cannot tell you how many times I have encountered dealerships who do not have good Wi-Fi much less the ability to use the Wi-Fi outside of the dealership. All of which impedes the usage of the tablet/phone. For example, many CRM’s today offer the ability for the sales consultant to scan the customers VIN on their trade using their phones/tablets. But if they are otherwise unable to connect and/or do not have service, it makes a simple, quick, process a daunting one. 

The Bottom Line: there are pros and cons to both perspectives. The most critical element to consider when approaching this conversation, however, is the purpose of moving towards tablets and phones. Ensuring that if you do make the switch that you not only have a solid infrastructure but more importantly that your sales managers buy into the process. As while the sales consultants might be in alignment with the changes, if the management is not on board it makes it that much harder to offer the customer the experience you are trying to offer. Lastly, for those who do embrace and offer the sales process via a tablet or mobile phone, it is still essential to have dedicated spaces where your sales consultants can work with the customer. As there is nothing worse than trying to work a deal in a space the customer does not find comfortable. 

Do You Use Tablets for the Sales Process? If So, What Are Some of the Challenges You Face? For Those Who Do Not Use Tablets Other than What the OEM Mandates, What is Holding You Back?
 

At one time or another, we have been asked by a customer "what the dealer processing fee is?" to which most everyone would give a different response. Everything from a fee we charge for DMV paperwork, DMV charge, a charge the dealer has to cover stuff, to name a few. If this question is answered incorrectly, it could land your dealer in hot water. To avoid this happening here some of the things you can do at your dealer to avoid this issue! 

So What isn't Dealer Processing Fee? 

The Dealer Processing fee is NOT for tag and title work, not for reimbursement of pulling the customer's credit scores, and it is also not reimbursement for other costs associated with the deal. 

So then What is the Dealer Processing Fee? 

Simply, it is a fee that your dealership is allowed to charge the customer in relation to services in which your dealership is not otherwise compensated for. 

(reference for the above; MADA)

Other Dealers Do Not have As High of A Dealer Processing Fee, But They Have Maintenance Charge Fees, Appearance Package Fees? 

There are times where I would get calls and the customer asked: "how come your processing fee is more expensive than the other dealer" to which I would (depending on the dealer they were comparing us to) explain that while our processing fee is higher as is the cost of the vehicle. The dealer they are comparing us too has discounted the vehicle to then add "fees" back into the deal (which is a whole other article), but for the purpose of this article instead of charging the same "processing fee," they were simply disguising into another fee, such as an "appearance package, maintenance fee," to name a few. I would not recommend doing that; however, that is something we see dealers doing. 

Educate Your Staff. Explain What the Dealer Processing Fee IS and IS NOT 

Given that there will come a time that your staff is asked to answer "what is the processing fee," you want to make sure that you first explain what the processing fee is not. Thereafter, take the time to explain to the staff how to answer the question. Another thing you can do for the team and customers is to have a brochure that explains the dealer processing fee. This will also help ensure that the same answer is given each time a customer has a question regarding the dealer processing fee. 

The Bottom Line: No one wants to land themselves - or their dealer -  in hot water by not answering the question correctly; or more importantly, miss inform their customers. That said, there are a few things that your dealer can do - as mentioned above - to ensure that your team is always answering the customer's questions regarding the dealer processing fee correctly. In doing so, it will lessen the chances of there being an issue. The other thing you want to be mindful of too is answering the customer's questions with regards to other dealers having less expensive Dealer Processing Fees, to then add "additional" fees to the deal. At the end of the day, it is best to be both honest and transparent to the customer by offering them a good experience.  

How do you handle this question? Is this a question you get often? 
 

In the last year, I have not been a direct supervisor - something, to be honest, that I did not miss. So I had to ask myself the honest question: what about managing did I not miss? Managing is not easy, we get that - you have not just to lead the team, but more importantly continue to develop the team, which means you are balancing personalities, finding their strengths, to then orchestrating them all together. This is not an easy task, and now that I am a manager again, here are some of the top things you should also consider when you are managing a team. 

Do Not Be Afraid to Let Your Team Lead a Project. They Cannot Develop or Grow if They Are Not A Part of the Change. 

It can be easy to try and manage everything yourself: everything from website changes, vendor management, etc. However, the truth is that no one person can effectively manage every facet of the business. This is something that I had to learn, in my last group while I did allocate work to my team they were not given the autonomy to complete and develop new projects. Something I wish I were allowed to do. That said, now that I do have the autonomy to have them develop new projects we can - as a team - effectively diversify our projects. 

One of the best ways to do this is to have a set of goals. Goals that do not just affect the team, but offer smart growth to the dealership. Everything from enhancing the website, working more effectively alongside our vendors, to most importantly working directly with the sales consultants. So while the autonomy, itself, does not necessarily mean that my team has free reign. The goal was to empower the team; working collectively to create realistic goals. Sustainable goals; and most importantly, goals they helped create. 

Do Not Get to Involved in the Day to Day Work. But Remember Where You Started. 

Sometimes we get too entrenched in the day to day work; we can often forget about the bigger picture. Namely, as a manager when you get too involved in the day to day operations, it offers you less time to think forward. Whether that is creating a new project for the team, or increasing your team's overall effectiveness, this by no means is offering that we do not support our team in what they do, either. Instead, it means that as a leader, we always have to be looking forward; understanding what projects are most important in offering our dealership success. Another significant aspect of assigning a project to your team is that it empowers them to both learn and grow. No one wants to become stagnant or disenchanted because they do not believe that they have the chance to grow and develop within the company. And as a manager, by assigning projects, it helps you better understand what their individual strengths are and what they, too, can bring to the table. 

Do Not Be Afraid to Hire Somone Better than You. Or This Can Lead You to Failure.  

There can - depending on the companies culture -  be this fear that if you were to hire someone better than you in an area that you could lose your job. Or that your employee might outshine you, and get all of the credit for the department's success. And while at certain companies this might be the case - you cannot lead like this! In fact, in doing so, it can and will eventually lead into failing not just the team, but yourself. Not everyone can be a leader (manager), and not every leader (manager) can be an employee. It works both ways. If you are a good leader, you will let your team shine, allowing them to bring their own strengths to the table. 

Do Not Roll Your Team Under the Bus. As A Leader, You Are Responsible for Your Teams Success. 

This is not to say that your team might let you down, but you have to ask yourself the hard question: did I fail my team? We are human, and we will make mistakes. But the last thing you want to do is pass all of the blame onto your team. Instead, use it as a learning experience and move forward. This will not only increase your chances of earning your teams respect and trust, but it shows your ability to lead the team in the right direction. The other thing to consider is looking back at why you failed, which in some cases can offer you the means to speak with your employees to prevent this from occurring again. But do not angle the conversation in a way that belittles your employee; focus on the positives, and how you can work as a team to prevent the mistake from recurring. We have to remember that we make mistakes, too and were once in their shoes before we got to where we are. 

Bottom Line: Leading is by no means easy, but a good leader will work with their team to leverage their individual strengths in a meaningful, relevant way. One that not just compliments the team, but most importantly offers the dealer success. 

Do you include your team in projects? What is one thing you have learned as a leader on the dealer level?
 

Every day your used vehicle sits on the side lot your dealer is losing money. It is no secret that the sooner you recon your pre-owned units, the better chances you have in holding higher gross, which means more profit. The problem, however, is that there are many hiccups along the way that can delay your car hitting the lot. Some processes can be implemented to address those concerns, and one of them is getting a few photos online before the vehicle is finished going through the recon process! In doing so, you can start to get traffic on the vehicle, which can help expedite the process. 

Here are a few tips for getting photos online for your recon unit! 

Take The Right Photos: You Do Not Need to Show Every Detail 

While the vehicle is working its way through the recon process, it is best to have the vehicle on your website. In doing so, you can start to get traffic on the unit. However, if you do not have any photos online, then you usually wind up having to interrupt the recon process to get the keys, and take photos. All of which can lead to there being a delay. To avoid this issue, have your inventory manager take a few photos; or better yet - when the vehicle is being traded-in have a process where the sales consultant takes specific photos of the unit. For example, many of today's CRM’s or trade-in tools can attach photos. That said, you can have your sales consultant take a photo of the front of the unit, sides, rear, and depending on the cleanliness of the vehicle a few interior pics to show off some of the features. 

The Photos Should Not Show A Dirty Vehicle

If the vehicle is filthy and otherwise unpresentable, then it is not best to have those photos online. What you can do, though is have the detailer quickly clean off the exterior of the vehicle. This way you can at least get three to five photos for your website. 

If You Have Interest in the Vehicle. Work With Your Sales Manager 

It sounds simple enough, but the hard truth is that when you do have an interest in a vehicle, and it is in the middle of the recon process, it can prove to be a little bit tricky. For example, if you were to get an appointment on the vehicle, and they have to stop the recon process, and the customer does not show, or the vehicle does not sell it has now delayed the unit being completed for another few days. If you do have an appointment on the vehicle, it is best to work with the sales manager and speak with service to make sure the vehicle is ready to go. You can also work with the customer and explain that it is still going through the state inspections. The main thing to consider is communication. The better your communication is internally, the easier it is to manage the recon process. 

Bottom Line: Simply taking a few photos of the vehicle before it goes through the recon process can have a positive impact on your dealership! Imagine being able to sell a few extra units a month because they had photos and were ready to go! 

Do you take photos of trade-in’s and put them on your website before it has gone through the recon process? If so, what results do you see from this?  
 

As a disclosure, this article is by no means offering and or suggesting not to sign a dealer contract. The purpose of this article is to discuss concerns around data privacy, brand image and the use of your dealers likeness to promote their brand otherwise, which in some cases can influence new to market products and services.  On the dealer level - when signing for a new product or vendor - we have contracts to sign; contracts that solidify our partnership with a vendor, to use their products and services. I can offer firsthand, however, that in previous experiences there were only a few questions asked before signing the contract; those questions, though, were about the terms mostly - i.e., what is the length of the contract, the setup fees, how much dealer support do we get? How is the account management set up? While those are good questions, they do not delve deep enough past the surface. Below the surface of that contract are some unnerving conditions and terms. So before you sign that next contract here is some of the top things to consider. 

The Vendor Has Full Access to Your Brands Image and Content Related to Your Brands Image to Promote Products and Services. 

That question above, of course, is not the only language used in dealer contracts. However, more often than not there is a clause in the contract that offers the vendor full access to your brand image and content. Content in which they can freely use to promote other products and services. Albeit, in many cases - the vendor does then acknowledge that if they were to demo their product - using your store as an example - that they would otherwise black out personal information. The bigger question, however, is what does this mean? 

On the surface, it could broadly mean that the vendor literally unequivocally has access to your brand's image and likeness to promote their products and services. Most commonly, if your dealer has the same OEM as a potential client, the vendor could offer that “your dealer” is using this product; this is not always the case, though - the vendor might say "another dealer (OEM) uses this product."  To which they can provide the client with an inside view of how your dealer is using their product. That said, it poses some significant concerns. One of those significant concerns is that with the competitive landscape, does a dealer truly want their direct competition having inside access to what their dealer is doing?

Moreover, while I am cognizant that a vendor has every right to promote their products and services, there have been instances - depending on the product and or service - where it has been asked for the vendor to sign an addendum. An addendum that is a non compete clause - a clause that protects your dealer - where they cannot sign up a dealer that is a direct competition.  This is by no means to offer and or suggest that the vendor you are currently using - and or wanting to use - would be willing to sign an addendum to protect your dealership from your direct competition. However, depending on the scope of the services it could be a question worth asking. 

Who is Responsible for the Dealers Data? What Rights Does the Vendor Have When it Comes to Using Your Dealers Data? What Does All of this Mean? 

As mentioned above, in many cases the vendor can use your data when offering a prospective client a demo. However, the vendor (in many cases; this is not to say all do) would black out personal information. For example, a vendor might offer: “I have a dealer in your market using this product. Here are some sample reports I can show you.” Where, they are not using the name of your dealer; they are however showing the prospective dealer your information, which (as mentioned above) is in many cases blacked out. While this might not seem to be a big concern; it is a concern worth noting. 

With regards to the privacy of your dealer's data, it is a considerable concern as to what the vendor can otherwise do with your dealer's data. Namely, can they use your data to offer new services and or sell your data to other companies. In which case, they can then use that data to develop new to market products and services. It has also been noted that are vendors who have “pixels,” in which case they were deliberately gathering data from dealerships websites. That data could then be used for what was mentioned above. At the end of the day, the biggest question - with reference to these concerns - is what access and or rights does the vendor have with your data? If there were to be a data breach with the vendor because of their using your customer's data in other means other than the purpose of their product or service - what does this mean for the dealership? Is the dealership then responsible for the issues? Alternatively, is the vendor responsible? This is a concern because in many (not all) of the vendor contracts, if it states that they have full access to your data, then they might not be liable. Further, in many cases, the language used in their contracts is very ambiguous, which raises even more concerns. That said, it is best to review those questions and ask the vendor directly what it actually entails and or means. Specifically, how does it apply to your dealership? 

Data Protection. Who Has Access to Your Data? How to Manage Third Parties Access to Your Data. 

It is not uncommon for a vendor to integrate directly with your CRM. For example, you might have a trade-in tool that is integrated. As such, there are concerns to consider; that is, what other access does that vendor then have with your customer data? How is your data then protected because of adding the vendor? For the contracts, I have reviewed, the vendor is mostly not responsible for what the other vendor does, which makes sense.  However, it does not necessarily then mean that the CRM vendor should not otherwise have safeguards in place that disable vendors from using the data in ways that do not pertain to the purpose of their relationship with the dealer. That being said, it is best to then review and inquire on these concerns directly with the vendor who is integrating the new service/product into their CRM. Asking them what access does the new vendor potentially have, and what they are doing to protect your data. Ensuring that there is clear communication between all parties that are involved. In doing so, it can assist in protecting your dealership should there be an issue. 

Bottom Line: this is by no means accusing vendors of any malicious practices and or otherwise stating that vendors are purposefully - or intentionally -  using your dealer's data for their own good to bring new products to market using your dealership's data.  Rather, the purpose and context of this article is to discuss how your dealer handles vendor contracts. With the notion that there is nothing wrong with asking the vendor what their contracts actually mean when it comes to their clauses, which sometimes states their overall ability to use your dealers brand and image to promote their products and services. In addition to inquiring what measures, if any,  they have in place to ensure that your data is as safe as possible from a data breach. Understanding, too, that not all vendors have secured information (such as social security numbers, addresses, etc.); however, if one of your vendors is integrated into the CRM - what if any access do they have to the secured data, which could pose risks to that secured information? There are also lawyers - though costly - who can assist your dealership in navigating the context of the language used in their contracts. The purpose of these discussions with lawyers is to ensure that you are protecting your dealerships most valuable asset, its data. 

How do you handle or approach vendor contracts? Do you have outside lawyers review contracts before signing them? Do you take time to review contractual concerns with your dealer team before signing? 
 

In the meantime, join the conversation here! 

It is evident that much of the training that we execute on the dealer level is relatively the same content, no?  In that, the topics that we train on have not evolved; other than new tools that can assist you in how you approach the process, itself. All of which poses a few questions; why are we continuing to train on the same topics, and what can we do to move to the next level? That is enhancing what we already do. 

One of the reasons, perhaps, is the high level of turnover on the dealer level. For every new hire - with some lasting just a few weeks to a few months - the dealers (for those that are doing training) are shelling out thousands of dollars to train their new staff. To then have to spend the same money to train their new hires. The other issue we face is that the content, itself, has not evolved; wherein, before you hire the next trainer or training company it is best to review the following: 

Just Because We Make the Effort to Train Our Sales Consultants Does Not Mean the Training Worked. How to Offer Relevant, Meaningful Training. 

There is this notion that by the act of training, itself, your issues can and will be resolved. This is especially an issue when your sales managers typically offer that they are too busy and forget to tell their sales consultants about the training; despite having been planned for weeks in advance. The moment that your staff realizes that your managers are not engaged with the training they can quickly lose interest.  I cannot tell you how many times I have experienced this excuse and issue on the dealer level. 

The other issue this poses is that even though your sales consultants and managers might know the answers; or have a solid understanding of the content. What they do not often know and fail to realize is that the reason you wanted this training - in the first place - is because you want the sales process (or other processes) to be approached differently.  The idea that your dealer's culture cannot effectively change - or necessarily see the benefits of the training - if not everyone is following the same new approach.

The other concern with this mentality is that it can create a very confusing environment for your new hires, no? The new hires are trying their best to act on what they learned, but if your sales managers are not aware of the changes, the new sales consultant might not be doing it the way the sales manager wanted. As such, it can create not just confusion, but more importantly, it can create disinterest. Disinterest leads to disengagement. Yet we still - not always, but mostly - tend to say “well the new hire just did not have what it takes.” So while that can be the case in some instances, it certainly is not the case for all of the new hires your dealership lost. 

Top Things To Avoid When Hiring Training For Your Sales Team. Most Importantly, Speak With Your Managers First. 

Not Speaking With Your Managers First. 

This is not to say that you cannot make decisions without them. However, what this does offer is making sure that your managers are on the same page with the training. If you make a decision on training - telling them it was what the owner wants - without speaking with them it can cause dissension from the beginning. The other benefit of talking with your managers first is to understand better what some of the potential breakpoints are. In doing so, it gives your managers the chance to offer what areas have potential. The goal with this approach is to provide your managers with the opportunity to open up - having a meaningful dialogue - to come up with a unified approach. 

Not Getting Involved Yourself And Taking the Time to Speak With the Training Company. Let Your Managers be Involved. 

It can seem more natural just to let the training company have free reign when it comes to training without having spoken to them first. Instead of using this approach,  it is best to review their training material making sure their processes are what you are looking for. However, more importantly, you need your sales managers buy-in. Otherwise, it is that much harder for the training to be effective. It is also just as important to explain to your managers that this training is to help them; not to browbeat them or overstate their failures. If you say something to the effect of “we hired training because you are failing as a manager” or "you are to busy to train, so I just hired a company" then it is not going to help the manager, and it certainly is not going to be executed on the dealer level. 

Showing the Trainer Reports Without Checking their Accuracy. Trainers Might Eat this Up. Get With Management First. 

I know first hand how frustrating this can be. There is nothing worse than getting called into the GM’s office because a report was pulled - one that you do not use - so the information was not accurate. At which point, the trainer was outlining everything you must be doing wrong. It is not a pleasant experience, because there is also nothing worse than trying to explain why the report is inaccurate. To then try and have a diplomatic dialogue to clarify that the report you actually want to view is “report name.” To which the trainer has already capitalized GM’s attention as to what we are potentially doing wrong. To avoid this approach, it is best first to review together which reports you use, and what are some of the areas that have an opportunity for improvement. In doing so, when the trainer does arrive, you will have already reviewed, collectively, which items need focus — allowing the conversation to entail how they are going to approach the opportunity vs. trying to actualize the opportunity with inaccurate reports. 

Bottom Line: 

Training can be very beneficial to the dealership. But not all training is created equal. Where the dealer is just as responsible for ensuring that their management and staff are made aware of not only when the training is, but the purpose of the training. In doing so, you will most likely get the much-needed buy-in from the management. It also then gives you (as the GM or owner) key performance index’s to measure after the training. Whereas, if the managers (and select sales consultants) did not participate in the training because they were to busy then you cannot expect them to be in alignment with the new process changes. 

At the end of the day, make sure that you are working as a united front versus you against them; and while that might not be the intention or purpose of you bringing training to the dealership, the perception can say otherwise. Internal perception is just as important to consider when it comes to retention. 

How do you handle training? Do you work together as a united front to select the trainer and training content?