DealerKnows Consulting
Second Place: Steak Knives
"Always Be Branding" ~ a mantra from the minds of Joe Webb and Bill Playford of DealerKnows Consulting
There is a famous line spewed melodically from the lips of Alec Baldwin in the genius sales film known as GlenGarry Glen Ross that most car folks can recite. “A B C – Always Be Closing!” This was the key message that Baldwin’s character challenged the sales team with before he gave them the ultimatum. If they were the best in sales, they win… “first prize is a Cadillac Eldorado. Anybody wanna see second prize? … Second prize is a set of steak knives. Third place is you’re fired.”
This has become a mantra for thousands of sales managers across the country. “A-B-C. Always Be Closing.” They preach the goal that a sale should always be front and center in your mind during every interaction. Unfortunately, this no longer is the case. Much like the movie based on David Mamet’s awesome stage play, this mantra has gotten a little older too. While Baldwin himself has stayed relevant over the years, this catchy mantra has passed its prime. So with that, DealerKnows (with the help of a young Alec Baldwin) brings you a new, more enlightened mantra. A-B-B. Always Be Branding.
Imagine during your weekly rah-rah meeting, your manager presented you with a fistful of paper leads? You’d probably have to suppress laughter. The world has moved on. Finding all of the information you need to make a sensible purchase decision can be found right online. Your best leads come right from your own website, or better yet, are emailed from your previous clients. People have already made a decision to buy before they even contact you. It’s now up to you to not mess it up.
The sale is no longer only made in face-to-face meetings. Deals are not won and lost based on a handshake over a three-martini lunch. The customer isn’t making their decision based on an interaction in-store (though a great customer experience helps). No. The marketplace has shifted online and it is your branding that either influences shoppers toward you or a lack of online brand presence that will make you less relevant in their eyes.
An entire generation has grown up with brands that are not just trademarks, but interactive entities. Look no further than Red Bull. In just 25 years the company went from formulating an energy drink to owning five soccer teams, two Formula One racing teams, a record label, sponsor countless athletes, and recently spun-off a critically acclaimed marketing wing. They now sell 4.5 billion cans of Red Bull a year, nipping away at the heels of Coke and Pepsi.
A-B-B. Always Be Branding. In everything you do. In every marketing dollar spent, every entity online, every email cent, every handshake at a chamber of commerce luncheon… you no longer have to sell. You just have to brand yourself or be able to deliver a clear brand message. Make people want to BUY FROM YOU (your people, your company, your value proposition, your deliverables) based on your brand. You are what is important. Selling is now a step down the road. Branding comes first. If you don’t realize that A-B-B mantra IS the new Glengarry lead of this generation, prepare for Alec Baldwin to give you some new cutlery. Or your walking papers.
DealerKnows Consulting
Building Rapport is OUT!
The Meet and Greet. The Needs Assessment. Getting to know them on the test drive. Making friends while waiting for figures from the manager. All of these are associated with the idea that building rapport is the key to selling cars. Well, building rapport is OUT! It is no longer a determining factor for many customers when buying a new vehicle.
We all have countless sales stories from our retail days (those of us who’ve done retail at least) of instances where finding a common ground with customers has helped us sell them a car. It still can go a long way in creating a more comfortable sales experience. However, I will say it again… “building rapport” is out.
The new focus should be “Fostering Relationships”. I know many of you are saying “splitting hairs” or “semantics”, but I don’t believe these two phrases mean the same thing. Building rapport is looking for some mutual understanding or trying to find ways to align yourself with the individual person.
involves the development of trust before the handshake, during the interaction, and long after the customer leaves the store.
Building rapport happens mostly in person and occasionally on the phone and email. Fostering relationships is peer to peer. It involves creating an evidence of honesty in your interactions with other customers. It relies on developing ways to grow your relationship further. It carries with it the idea that a relationship should develop after the sale opposed to just prior to the sale.
I will not tell you to do away with the “Where did you go to school?” or “Where do you work? questions. I won’t ask you to cease the “How do you use your current car?” inquisitions or the “Yeah, my sister lives in that town” scenarios.
Instead, I’d like you to think of ways to engage the customer before you are engaged. Reviews, testimonials, video bios and more are all ways to start fostering a relationship with customers before first contact. What is the difference between building rapport in person or fostering a relationship in person? The former is asking questions, looking for commonalities. The latter is discussing how you will serve them and continue to earn their business long after the sale. (Think “new owner clinic discussions” and “loyalty program talks”.)
Put a strategy into place today (whether it is in your service department, your social media calendar, your CRM follow-up, or your post-sale deliverables) that will allow you to truly foster a relationship with this customer. In the days of multiple mediums to communicate (especially social platforms), it is more important than ever to maximize your connection with your customers. This connection shouldn’t just be between the customer, the salesperson and their church, but instead, how your entire organization serves the church, the community, and the individual customer with your personal services.
Stop thinking that building rapport is all you need to sell a vehicle in a 2012 world. Building rapport is all about completing a short-term action while fostering relationships are about implementing long-term strategies. You must foster relationships before, during and after, if you truly want to develop ongoing customer satisfaction.
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DealerKnows Consulting
Building Rapport is OUT!
The Meet and Greet. The Needs Assessment. Getting to know them on the test drive. Making friends while waiting for figures from the manager. All of these are associated with the idea that building rapport is the key to selling cars. Well, building rapport is OUT! It is no longer a determining factor for many customers when buying a new vehicle.
We all have countless sales stories from our retail days (those of us who’ve done retail at least) of instances where finding a common ground with customers has helped us sell them a car. It still can go a long way in creating a more comfortable sales experience. However, I will say it again… “building rapport” is out.
The new focus should be “Fostering Relationships”. I know many of you are saying “splitting hairs” or “semantics”, but I don’t believe these two phrases mean the same thing. Building rapport is looking for some mutual understanding or trying to find ways to align yourself with the individual person.
involves the development of trust before the handshake, during the interaction, and long after the customer leaves the store.
Building rapport happens mostly in person and occasionally on the phone and email. Fostering relationships is peer to peer. It involves creating an evidence of honesty in your interactions with other customers. It relies on developing ways to grow your relationship further. It carries with it the idea that a relationship should develop after the sale opposed to just prior to the sale.
I will not tell you to do away with the “Where did you go to school?” or “Where do you work? questions. I won’t ask you to cease the “How do you use your current car?” inquisitions or the “Yeah, my sister lives in that town” scenarios.
Instead, I’d like you to think of ways to engage the customer before you are engaged. Reviews, testimonials, video bios and more are all ways to start fostering a relationship with customers before first contact. What is the difference between building rapport in person or fostering a relationship in person? The former is asking questions, looking for commonalities. The latter is discussing how you will serve them and continue to earn their business long after the sale. (Think “new owner clinic discussions” and “loyalty program talks”.)
Put a strategy into place today (whether it is in your service department, your social media calendar, your CRM follow-up, or your post-sale deliverables) that will allow you to truly foster a relationship with this customer. In the days of multiple mediums to communicate (especially social platforms), it is more important than ever to maximize your connection with your customers. This connection shouldn’t just be between the customer, the salesperson and their church, but instead, how your entire organization serves the church, the community, and the individual customer with your personal services.
Stop thinking that building rapport is all you need to sell a vehicle in a 2012 world. Building rapport is all about completing a short-term action while fostering relationships are about implementing long-term strategies. You must foster relationships before, during and after, if you truly want to develop ongoing customer satisfaction.
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DealerKnows Consulting
No More No. 2
Back and forth. Up and down. Back and forth. Up and down. Back and forth goes the salesperson negotiating with the customer. Up to the sales manager’s desk the salesperson walks and then back down to their desk they go with another price. Another attempt. This volley with the customer has become archaic and antiquated. It is disliked and disgusting. The days of penciling deals over and over must end.
No more No. 2. No more pencils. That strategy is done. It’s finished. Someone tell your sales managers. Break into their desks and steal out the pencils and multi-colored Sharpie markers. The consumer has moved beyond this tired strategy and is ready for new days of selling! Stop the negotiating with customers and start the educating.
It is time your sales managers and sales people end the rigmarole they’ve used for years and do away with how they’ve penciled deals. Instead, your managers and salespeople must learn how to overcome objections and negotiate through education. The consumers are coming in with very specific expectations and very detailed research. Why put them through the constant back and forth? Instead, you must utilize the online resources and data at your (and the customer’s) disposal to validate the price you charge.
Dedicate yourself to understanding what all is available to your consumers online and begin using the third-party data as evidence to defend the price you are charging. I’m not advocating a one-price solution here. Negotiation is still allowed and going for gross is still acceptable, but be prepared to answer the “WHY?” question when it arises with real data.
We have now entered the era of Validation Selling. We must prove the reason we price our vehicles by utilizing the data they already have.
Moreover, we must eliminate the tactic of writing down our offer on a half-blank sheet of paper with markers and pens and begin presenting our figures on a fully-printed out pricing proposal. All figures must be entered into the CRM and printed out as if it were an official contract. This must happen from the very first offer. Having it printed and available in a clean format lends credence to the numbers your sales team present. Certainly more validity than a four-square with $24,995 scribbled across it in thick blue ink.
Get on board with Validation Selling. (Yes, I'm coining a new term here.) Throw out any previously-held beliefs that the customer still enjoys the ‘back and forth, up and down, crossed-off price here and slightly lower price penciled there’ strategies that you’ve grown accustomed to. Educate yourself and then educate the customer with online, third-party data – or be prepared to overcome it. You will sell more vehicles and build a quality customer sales experience at the same time.
This is how to sell vehicles in 2012 and beyond. Education over Negotiation. DealerKnows are the Validation Selling Specialists. Let us explain it to you.
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DealerKnows Consulting
No More No. 2
Back and forth. Up and down. Back and forth. Up and down. Back and forth goes the salesperson negotiating with the customer. Up to the sales manager’s desk the salesperson walks and then back down to their desk they go with another price. Another attempt. This volley with the customer has become archaic and antiquated. It is disliked and disgusting. The days of penciling deals over and over must end.
No more No. 2. No more pencils. That strategy is done. It’s finished. Someone tell your sales managers. Break into their desks and steal out the pencils and multi-colored Sharpie markers. The consumer has moved beyond this tired strategy and is ready for new days of selling! Stop the negotiating with customers and start the educating.
It is time your sales managers and sales people end the rigmarole they’ve used for years and do away with how they’ve penciled deals. Instead, your managers and salespeople must learn how to overcome objections and negotiate through education. The consumers are coming in with very specific expectations and very detailed research. Why put them through the constant back and forth? Instead, you must utilize the online resources and data at your (and the customer’s) disposal to validate the price you charge.
Dedicate yourself to understanding what all is available to your consumers online and begin using the third-party data as evidence to defend the price you are charging. I’m not advocating a one-price solution here. Negotiation is still allowed and going for gross is still acceptable, but be prepared to answer the “WHY?” question when it arises with real data.
We have now entered the era of Validation Selling. We must prove the reason we price our vehicles by utilizing the data they already have.
Moreover, we must eliminate the tactic of writing down our offer on a half-blank sheet of paper with markers and pens and begin presenting our figures on a fully-printed out pricing proposal. All figures must be entered into the CRM and printed out as if it were an official contract. This must happen from the very first offer. Having it printed and available in a clean format lends credence to the numbers your sales team present. Certainly more validity than a four-square with $24,995 scribbled across it in thick blue ink.
Get on board with Validation Selling. (Yes, I'm coining a new term here.) Throw out any previously-held beliefs that the customer still enjoys the ‘back and forth, up and down, crossed-off price here and slightly lower price penciled there’ strategies that you’ve grown accustomed to. Educate yourself and then educate the customer with online, third-party data – or be prepared to overcome it. You will sell more vehicles and build a quality customer sales experience at the same time.
This is how to sell vehicles in 2012 and beyond. Education over Negotiation. DealerKnows are the Validation Selling Specialists. Let us explain it to you.
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DealerKnows Consulting
The Eric Clapton Social Media Plan
We know that social networking is going to Change the World, but dealers are jumping in without any plan of action. You need to understand the medium and Get Ready before you Walk Out In The Rain or you’ll have a Losing Hand. Listening to one of the greatest musicians of all time, Eric Clapton, can give you advice on how to become successful at social media when he sings:
“It’s in the way that you use it,
It comes and it goes.
It’s in the way that you use it,
Boy don’t you know.
And if you lie you will lose it,
Feelings will show.
So don’t ever abuse it.
Don’t let it go.”
As countless dealers create FB (and G+) pages every day, they need to develop a posting and sharing strategy and it MUST be tied in to what you are doing on the ground within the community. There are six primary ways that I see dealers posting on the social sites:
1) C.R.A.P. – an acronym developed by my friend Eric Miltsch where he believes in posting Coupons, Reviews, And Pictures. This also includes service specials and fixed ops discounts.
2) Celebrating your Customers – this is the posting of customer testimonials, pics of happy customers, and milestone purchases/services/mileage images.
3) Celebrating your Employees – this is the posting of reviews, employee biographies, videos, personal accomplishments, and more to endear your staff to your followers.
4) Celebrating your Community – Sharing your involvement in local events, charities, and organizational activities in and around your primary market area. Your goal is to align yourself with important aspects of local goings-on and act as a valuable, participating member of the nearby community.
5) Trivia – Since your social prowess is determined by the amount of engagement you have on the social pages, many dealers post questions asking the opinions or their fans. (ie – ‘What was the best Christmas gift you ever received?’ Or ‘Where is the best place to eat barbecue?’) Any way to get others to comment or elicit a response.
6) Being an Extension of the OEM – This is where dealers share information about the newest models, concept cars, third-party validating reviews, and OEM-style material that helps further the brand, but not so much the dealership.
So you are at a Crossroads. You don’t have to decide right now. Wait until After Midnight. Whichever way you choose, I urge you to listen to some Clapton and recognize that your success will be based on “the way that you use it”.
If you are only utilizing one of the strategies above (which is what most dealers are doing), you need to Reconsider Baby. Instead create a plan to post using ALL of the tactics above. Tell the Truth, you don’t have as many Lay Down Sally’s walking onto your showroom as before so you need to begin reaching them in a contemporary fashion. My guess is that if you look at your most recent posts on FB, with The Shape You’re In, it’ll take Five Long Years to see any reward from your current strategy.
If you aren’t involved in social networking at all, you’ll be Standin' Around Crying Tears in Heaven and Groaning the Blues without a franchise because these are the places the public is turning for information. Only those that develop a social marketing plan From the Cradle will look Wonderful Tonight. There is a way to be the Cream of the crop while marketing your dealership socially and that is to be a little like Clapton.
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DealerKnows Consulting
The Eric Clapton Social Media Plan
We know that social networking is going to Change the World, but dealers are jumping in without any plan of action. You need to understand the medium and Get Ready before you Walk Out In The Rain or you’ll have a Losing Hand. Listening to one of the greatest musicians of all time, Eric Clapton, can give you advice on how to become successful at social media when he sings:
“It’s in the way that you use it,
It comes and it goes.
It’s in the way that you use it,
Boy don’t you know.
And if you lie you will lose it,
Feelings will show.
So don’t ever abuse it.
Don’t let it go.”
As countless dealers create FB (and G+) pages every day, they need to develop a posting and sharing strategy and it MUST be tied in to what you are doing on the ground within the community. There are six primary ways that I see dealers posting on the social sites:
1) C.R.A.P. – an acronym developed by my friend Eric Miltsch where he believes in posting Coupons, Reviews, And Pictures. This also includes service specials and fixed ops discounts.
2) Celebrating your Customers – this is the posting of customer testimonials, pics of happy customers, and milestone purchases/services/mileage images.
3) Celebrating your Employees – this is the posting of reviews, employee biographies, videos, personal accomplishments, and more to endear your staff to your followers.
4) Celebrating your Community – Sharing your involvement in local events, charities, and organizational activities in and around your primary market area. Your goal is to align yourself with important aspects of local goings-on and act as a valuable, participating member of the nearby community.
5) Trivia – Since your social prowess is determined by the amount of engagement you have on the social pages, many dealers post questions asking the opinions or their fans. (ie – ‘What was the best Christmas gift you ever received?’ Or ‘Where is the best place to eat barbecue?’) Any way to get others to comment or elicit a response.
6) Being an Extension of the OEM – This is where dealers share information about the newest models, concept cars, third-party validating reviews, and OEM-style material that helps further the brand, but not so much the dealership.
So you are at a Crossroads. You don’t have to decide right now. Wait until After Midnight. Whichever way you choose, I urge you to listen to some Clapton and recognize that your success will be based on “the way that you use it”.
If you are only utilizing one of the strategies above (which is what most dealers are doing), you need to Reconsider Baby. Instead create a plan to post using ALL of the tactics above. Tell the Truth, you don’t have as many Lay Down Sally’s walking onto your showroom as before so you need to begin reaching them in a contemporary fashion. My guess is that if you look at your most recent posts on FB, with The Shape You’re In, it’ll take Five Long Years to see any reward from your current strategy.
If you aren’t involved in social networking at all, you’ll be Standin' Around Crying Tears in Heaven and Groaning the Blues without a franchise because these are the places the public is turning for information. Only those that develop a social marketing plan From the Cradle will look Wonderful Tonight. There is a way to be the Cream of the crop while marketing your dealership socially and that is to be a little like Clapton.
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DealerKnows Consulting
People Don't Want to "Like" You
You are a dealership. Most people don’t like the thought of visiting you. Through the years, a good majority of everyone who drives cars has had a frustrating experience at a dealership. Maybe not yours, but they’ve had a bad taste put in their mouths by others. They don’t want to be your friend, they just want to be serviced by you.
I don’t believe that in all of my (coughing) years I ever heard a normal person stand up for a car dealership’s reputation as another besmirches it in conversation. I’ve never heard “Hey! You leave XYZ Motors out of this. They are great people – the lot of them!” No. Doesn’t happen. When a dealers’ name is raked over the coals by an unhappy party, it is commonly accepted as unfortunate and realistic. So when you ask someone to “Like” you on FB, is it for reasons personally worthy to a customer?
My guess is, short of thinking they are going to win an iPad/TV or receive coupons for service, many could honestly go without seeing your customer reviews, pictures of happy customers, videos of salespeople, and alerts of the “big sale”. These things don’t carry much weight with most.
Try to tap into what people REALLY care about. Get your dealership involved in the community. Sponsor Little League teams, attend the Chamber of Commerce meetings to network, give to charities and participate in their local events, get involved in the local schools and help run food drives, car washes, etc. Give, give, and give to the philanthropies in your area.
Then… simply document (film, photograph, and blog) all of your involvements. Be a spectator to the events and video your participation. Those are the elements worthy of being shared socially. People don’t want to “Like” your dealership, but I guarantee you that someone in your community feels pretty strongly tied to things such as Breast Cancer Awareness events or the local Special Olympics. THOSE are organizations close to their heart. Your dealership likely will never be. However, if you can just tap into (and honestly serve) those entities that are meaningful to some, you will at least be in the right company. You will start feeling more goodwill toward you because you yourself have given something back.
I’ve accomplished a lot in automotive retail, but I am more proud of the hands I’ve shook and the smiles I’ve made happen when participating in local community events than any metric I’ve reached. If you want to make a difference and be “Like”able, then start by serving the community’s efforts before your own.
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DealerKnows Consulting
People Don't Want to "Like" You
You are a dealership. Most people don’t like the thought of visiting you. Through the years, a good majority of everyone who drives cars has had a frustrating experience at a dealership. Maybe not yours, but they’ve had a bad taste put in their mouths by others. They don’t want to be your friend, they just want to be serviced by you.
I don’t believe that in all of my (coughing) years I ever heard a normal person stand up for a car dealership’s reputation as another besmirches it in conversation. I’ve never heard “Hey! You leave XYZ Motors out of this. They are great people – the lot of them!” No. Doesn’t happen. When a dealers’ name is raked over the coals by an unhappy party, it is commonly accepted as unfortunate and realistic. So when you ask someone to “Like” you on FB, is it for reasons personally worthy to a customer?
My guess is, short of thinking they are going to win an iPad/TV or receive coupons for service, many could honestly go without seeing your customer reviews, pictures of happy customers, videos of salespeople, and alerts of the “big sale”. These things don’t carry much weight with most.
Try to tap into what people REALLY care about. Get your dealership involved in the community. Sponsor Little League teams, attend the Chamber of Commerce meetings to network, give to charities and participate in their local events, get involved in the local schools and help run food drives, car washes, etc. Give, give, and give to the philanthropies in your area.
Then… simply document (film, photograph, and blog) all of your involvements. Be a spectator to the events and video your participation. Those are the elements worthy of being shared socially. People don’t want to “Like” your dealership, but I guarantee you that someone in your community feels pretty strongly tied to things such as Breast Cancer Awareness events or the local Special Olympics. THOSE are organizations close to their heart. Your dealership likely will never be. However, if you can just tap into (and honestly serve) those entities that are meaningful to some, you will at least be in the right company. You will start feeling more goodwill toward you because you yourself have given something back.
I’ve accomplished a lot in automotive retail, but I am more proud of the hands I’ve shook and the smiles I’ve made happen when participating in local community events than any metric I’ve reached. If you want to make a difference and be “Like”able, then start by serving the community’s efforts before your own.
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DealerKnows Consulting
Ask a Lois Lane Question
Superman is my all-time favorite superhero. There isn’t another that comes close. Needless to say, I’m a big fan. But as much as I like wearing the iconic S-emblazoned shirts, I’m no Superman. I’d like to think I live by some of the same moral code attempting to help others through my training, but that comparison and analogy is a stretch (as it would be for anyone.)
There are very few superheroes in our business, but there are many people trying to help you succeed and thrive. They share a willingness to assist, educate, and train the same way that Superman is driven with the need to help people. The problem? There are a lot more Lex Luthors out there looking to take advantage of you than there are automotive online crime-fighters.
In the original Superman (and I say “original” because to me and my generation, there is only one Superman and that is Christopher Reeves’ Superman), Lois Lane falls off of a helicopter dangling from a large tower. She simply doesn’t have the ability to fly or the know-how to stop from smacking the ground (much the same way a dealership doesn’t understand how to stop their online sales from dipping or their closing ratios from waning). Thankfully for her, Superman swoops in and saves her. He grabs her and flies her upward.
There are many people in the automotive industry attempting to be the superhero that carries you to the promise land. I would like to think my team and I at
are some of those trainers and consultants. However, even when Superman reassures her that he’s got her, Lois Lane asks the obvious question... “You - You’ve got me… who’s got you?”
In other words, how does their involvement in your situation guarantee you will be saved? How this relates to our industry is this: You have to ask what qualifies someone else to control the path your dealership is on. There are no superheroes so what makes them the entity powerful enough to swoop in and control the destiny of your dealership?
Are you outsourcing your social media? What makes that company qualified to do so? Have they had success with social media before this or do they just know how to “sell” social media?
Are you outsourcing your BDC? What makes them stronger at phone handling than your own staff?
Are you outsourcing your blog writing? Your chat? Your search engine marketing? Are you sure you can’t do this yourself? Do you really need someone else to whisk you away from these responsibilities or can they be done in store by your own team with just a little training?
Is there a trainer leading the digital initiatives at your store that doesn’t have the experience or expertise themselves? If so, maybe you shouldn’t be handing them the keys to your online kingdom so quickly. Your online presence is one of your most valuable commodities – you can’t just trust it to someone who knows how to speak the hot-topic lingo. They must know how to execute. You need an expert. Otherwise, there is a good chance you can hire (or promote internally) someone that would be just as effective as they are if given the proper tools and training.
The DrivingSales Vendor Rating system was created to allow dealership staff at the Daily Planet to show who can really fly and who just makes whooshing sounds with their arms pointed outward toward the sky. It asks dealers to rate who they feel the real deal is. It comes down to trust. As a dealer, you want to trust your Superman, but it is imperative you make sure they have a history of being super before you asked to be saved. And whoever has served you with trustworthy information over the years, those are the people you seek out for advice, training, and assistance.
Too many vendors out there are all cape, no substance. They claim to be superheroes, but they are evil, smiling Lex Luthors, twisting buzzwords into sales pitches and walking away with your money. Make sure to ask Lois Lane questions. If they’re holding you, who is holding them? What other experiences and successes can they pull from that proves they are the superheroes to your Lois Lane. Be an investigative reporter before outsourcing your departments and make sure that you are teaming up with a real Superman.
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