The average dealership hires a salesperson and, after a brief introduction of paperwork, allows the salesperson to begin talking to and selling to their customers. Some dealerships may send the salesperson to a meeting room to watch a series of perfunctory training videos and then cut them loose on the showroom floor to sell. Either way, the day of unleashing an untrained salesperson on a well-trained customer is dead.

The days of counting on a steady stream of traffic and allowing salespeople to train through trial and error are over. The margin for error has been erased. The customers are now unforgiving in having salespeople on the job train at their expense. The customers, through the use of the Internet and their information gathering, have driven the competition for their business to another level.

Selling can no longer be taught solely as features and benefits. Selling is an educational, experiential process won by salespeople and dealerships who have worked diligently at becoming a category of one. A new salesperson with a lack of intense education — from cradle to grave of their careers — is doomed to failure or mediocre results at best.

No longer can dealership leaders allow the idea to permeate their business philosophy that veteran salespeople can’t, won’t or don’t need to be trained. The marketplace is unforgiving and cares only about results. An experienced salesperson without continual updated information and education is no better, and often worse, than an untrained new salesperson. The meaning at the root of the word “sell” is “to serve.” At least a new salesperson usually has an attitude of servitude that may be lacking in an often jaded but experienced salesperson.

Death is a cessation of movement and an unwillingness to adapt and accept change. Today’s marketplace demands that businesses be staffed with team members who display “teachable spirits.” Dealerships who wish to be in a position to compete for a customer’s business will have an intense written, communicated and required game plan for continual education.

The average technician in a dealership can have tens of thousands of dollars invested in education, tools and tool boxes. What about your salespeople? What investment is the salesperson making in his tools? What investment is the dealer making in that person who, with one bad contact with a customer, can in the short term cost the dealer thousands of dollars and, in the long term, hundreds of thousands of dollars.

Education is not a sometime thing but an everyday habit. Doctors, lawyers and brain surgeons don’t stop educating themselves upon graduating from school. Would you want a doctor to operate on you who has not been trained on the latest techniques and best practices? I once had a dealer tell me they were waiting to see if a salesperson was going to make it in the business first before investing in him. The only thing worse than investing in a salesperson who does not make in the business is not investing in a salesperson who does make it in the business.

For a free special report “10 Things Your Dealership Must Do To Be Successful” e-mail me at info@tewart.com with “10 Things” in the subject line.

Everyone talks about change, but few people embrace it. Change is growth, and growth is positive and unavoidable. If you don’t change, the world will change without you and leave you behind. In business today, change is occurring at a rapid pace and is causing the death of traditional salespeople as we know them.

In the age-old process of selling, the emphasis has been on a linear “road to the sale” process. Step One leads to Step Two and so on. The Internet information age has made the traditional road to the sale obsolete. Your customer today may be on Step Three or Four from the beginning, instead of the traditional Step One. Traditional salespeople try to force the customer through a funnel no matter what the customer says or feels. Today, flexibility and understanding in the sales process is the key.

The traditional sales process talked about features and benefits. If you are selling just features and benefits today, you are at a strong disadvantage. It’s simply not enough. You must communicate features, benefits and value wrapped up in a story and shared through an experience. People want to be involved and, when they are, it strengthens their commitment. Traditional selling is something that is done to someone and modern selling is something that is experienced with the help of a communicator/ facilitator/problem solver.

In the traditional sales process, price is never mentioned until the feature-benefit presentation has been made. Price is avoided and evaded. In today’s market, you cannot ignore the issue of price; instead, you must address it up front to eliminate the fear and establish trust. By addressing price, you will move the customer past price apprehension and eliminate the fight caused by avoiding and evading. This does not mean you have to be a quote machine, but it does mean that you cannot be afraid to discuss the issue of price to move past it.

In the traditional road to the sale, you would address the customer’s trade-in at the time of the appraisal because it’s part of the pricing structure and, therefore, part of the negotiations and a potential objection. In the modern sales process, you recognize the trade-in as being a major comfort zone of the customer and a great tool to build rapport and find out the customers patterns of buying. You will now address the trade-in willingly up front in the process. People repeat buying behavior whether it’s in person or on the Internet. The Internet is just another medium used in the process and customers emulate offline and online behaviors and patterns.

In the traditional road to the sale, customers are asked to make a buying commitment before they are given figures. Imagine scaring your customers so much before you gave them figures that you created a fear about buying. That’s exactly what often happens in a traditional sales process. If you want to commit a customer, do so throughout the sales process in small commitments, based upon the process and the value of the product and their satisfaction. Get continual agreements about the two things all customers care about today — time and money. All people want to save time and money. Use these keywords throughout the whole sales process and get agreement about how everything you are sharing with them, everything they are experiencing and the manner in which you are doing it is creating opportunities for them to save time and money. Perception becomes reality. Frame the perceptions and thoughts and you will frame the basis of the customer’s decision all without making them commit to a buying decision too early in the sale process when they don’t have enough information. This old school form of commitment is just “If I could would you…” run amok.

Utilize as many modalities of learning as possible with your customer. Allow people to see, hear, feel and experience. Old school selling was dominated by telling things to customers and making verbally dominated presentations. The problem is that many of your customers are not auditory learners. The popular method of selling in the past has not matched the way a customer tends to learn and absorb information in a comfortable way. Through proper questioning, you can easily define a person’s dominant mode of learning and weave in the other modalities to put the customers buying experience on steroids. Utilize video, audio and experiential steps in the buying process and your customers will begin to feel what I call the “Disneyland Effect.” Create sensory amazement with your customer.

Your customer should never be able to walk away from the buying experience they have with you and compare it to any other salesperson. The traditional salesperson tried to find the right car, information and price for the customer and hoped he got the sale. Today, the customer can get those things anywhere and never leave the house to get it. Your marketplace demands more. Start to reevaluate your sales process by thinking of the following questions:

• What are other salespeople not doing?

• What would be the opposite of what other salespeople do?

• What do customers want, and in what way do they want it?

• What would make you stand out from anyone else?

• What parts of traditional selling should be tweaked, changed or removed altogether to create an easier, better buying experience?

• What is the customer’s biggest fear and how do I remove it?

• What do I have the most fear about eliminating or changing in my sales process and why?

Usually the biggest rewards are in attacking the areas we fear the most. The things we tend to hold as the strongest foundations and that would absolutely be unthinkable to change are the very things that tend to lead to the biggest breakthroughs. Traditional selling is dead and that is a good thing. Ten years from now, the breakthroughs of today will be obsolete. The question for you is, will you be obsolete?

Every year at the NADA Convention, the exhibit hall is full of CRM and BDC companies displaying their wares. Dealers spend massive amounts of money in a frenzy to buy the “magic button” CRM or BDC solution for many reasons. Unfortunately most of those reasons aren’t valid. Putting great tools in the hands of below-average people with below-average processes and little-to-no accountability equals a waste of money.

Let’s look at some of the underlying reasons why dealers buy these tools. Dealers see their dealer friends, fellow 20 Group members and competitors buying these tools and feel the peer pressure to “keep up with the Jones’s.” Dealers start reading trade magazines and attending programs where a lot of the conversation is around customer relationship management and feel the force of momentum around this subject.

Unfortunately, I have been in thousands of dealerships across the country and can say without a doubt that in the majority of dealerships, between 80 to 90 percent of their CRM’s or BDC’s functionality is not being used. Great technology and great tools alone do not move a traditional dealership into the new age of selling. In most dealerships with CRM tools, incremental sales and service numbers are not improved and massive amounts of money are being wasted.

In almost 30 years in the business, I have witnessed the majority of dealerships putting massive amounts of time, energy and money on acquiring new customers and giving only lip service around the importance of existing customers. All research, data and plain logic shows that putting the emphasis on your existing customer base first will reward you more than any other single thing you can do. I conduct interviews with dealers every day, and it’s hard to find a dealer who actually knows what their dealership’s repeat sales numbers look like. Almost none of the dealers I interview can tell me what their sale-to-service retention percentage is. Very few dealers can give a detailed explanation of their CRM process and how it is carried out, and even to what degree it is carried out. Embarrassingly, very few dealers can tell me specifically and convincingly why a customer should buy from their dealership versus their competitors’.

The traditional entrepreneurial dealer focused only on push-driven sales approaches is dead. Dealers have to be better business people than ever before. Gone are the days of being successful in spite of you. The margin for ignorance and operating error is slim.

Bury your old dealership and operating approach as you know it. Take the time to step away from your dealership and evaluate what you are doing versus what needs to be done. Evaluate the 4 P’s of your business – People, Process, Product and Positioning. Evaluate all the tools and technology you use and the effectiveness of those tools and the way they are being used or most likely not being used. You must integrate people and technology together into a cohesive sales and marketing process.

Many dealers will need to come to the conclusion that they will never be able to set up a traditional process with people carrying out all the functions they want them to. Most of your salespeople and managers are not capable or willing to do all the things you want them to do. The truth for those dealerships is that they never have and they never will. If this is your dealership, you may have to let go of your ego and design a process with job descriptions that can actually succeed. You may decide to remove some of the traditional functions and narrow the focus of each person on your team. I have often heard dealers say, “I expect my managers or salespeople to do these things.” In return, I always ask the dealer, “Do they? And if so, how often?” Most of the time, the answer is either “no” or “very little.”

It’s very clear — gone are the days where a dealer can accept that expectations are not being met. You must either improve your people and accountability of those people or completely redesign your dealership with processes and benchmarks that can and will be executed and monitored. I invite dealers to stop playing victim by blaming your people for not executing. You hired them, you set up the process and you created the accountability or lack of it. Therefore, it’s your responsibility and your job to fix it.

For a free special report titled “10 Things You Must Do At Your Dealership To Be Successful” e-mail me at info@tewart.com with “10 Things” in the subject line.

Do you feel like you are missing out on something? Are you confused as to what the next step is in making your dealership successful? It’s a different ballgame than it was even just a few years ago. The traditional dealership is dead and you must bury it to prosper in the future.

For years, the car business could be a forgiving business. There was room for a lot of error in a dealership, and yet a dealership could still be profitable. Those days are gone. Dealerships cannot be run in only a “seat of the pants,” entrepreneurial fashion anymore. To be successful, dealerships have to be measured intensely in four areas: people, process, product and positioning.

People

You must choose a path that works for your dealership philosophy. You must recruit people on a full-time basis based upon want, not need. The leadership of a dealership must have a written and executed game plan for recruiting that utilizes online services, job fairs, colleges, tech schools, high schools, Web sites, micro-sites, social media, newspaper, mass media and more.

A dealership needs a detailed plan that includes interview questions, a number of interviews, personnel trained to interview, testing methods for potential job skills match, screening methods, follow-up methods, and initial and ongoing training methods for new hires.

Process

Each dealership should have a written and executed process for every part of the dealership: sales process, Internet lead process, marketing process, service process, parts process, manager process, used car inventory process, etc. As an example, the selling process must be reviewed to make sure it is up to date and matches today’s marketplace. Most sales processes being used today were created in the 1950s and 60s and have changed only slightly. Meanwhile, for the customer, everything has changed. Information gathering, overall knowledge, shopping process, volume of choices, expectations, value perceptions and lessening of brand loyalty are all things that have changed dramatically.

Every dealership needs to review their process based upon TLC – Think Like a Customer. What are you currently doing in your dealership process that lessens customer trust or ease of shopping/buying? Most dealerships are living in the stone-age when it comes to something as simple as the meeting and greeting of the customer. Nothing in your current process is sacred, and the mantra for many things should be “just let it go.”

Product

The days of “Stack’em deep and sell them cheap” are over. Your new and used inventory must be monitored daily using analytic systems and technology that measures not only your inventory but others and market conditions. Many dealers have fought using any type of turn system, even though simple mathematics proved you would be better off doing so. Well, the tide has turned again. Turn systems themselves are now outdated and can even lower your dealerships ROI without other factors involved. Each vehicle is an investment — just like a stock or mutual fund — and must be analyzed, bought, priced, marketed, sold and eliminated using several conditions. Just saying that you have a 45-day turn system is not good enough anymore.

Positioning

Gone are t he days of running display newspaper ads and waiting for traffic to arrive. Your dealership must have a dealership strategy that combines market positioning. Selling vehicles based upon price only will not create long-term success. Successful dealers will no longer be able to delegate all of their marketing to an advertising strategy without educating themselves on the marketing and positioning aspects of their dealership.

Dealers will have to massively educate themselves on things such as direct response marketing methods, copyrighting, multi-step campaigns, integration of online and offline methods, social media, continual customer relationship building strategies, and sales to service continuity programs and retention. Dealers will learn that many advertising agencies do not understand any of these things and simply create lousy to mediocre production and buy the media. Without a well-thought strategy, using intentional congruence with all of the above-mentioned factors, you cannot be successful in this and future marketplace.

In the last year, I have asked hundreds of dealers the following questions:

• What are your overall sales to service retention numbers and percentages beyond a free first oil change?

• What are your number of inactive customers, and what percentage is that to your overall customer base?

• What is your planned and executed strategy for a continuity program to keep your customers for sales and service?

Here is the sad result: Out of hundreds of dealers, only one knew the answer to these questions. I continually find that dealers and managers do not really know what is going on in their own dealerships and are not doing anything to educate themselves to change that.

The reality is that the future belongs to dealers who educate themselves more, execute better and understand the value of speed in today’s marketplace. The marketplace of today and the future will continue to be very unforgiving, with little room for margin of error, inattention or being slothful. The traditional dealership is dead, but the exciting news is your new dealership is waiting to be born.

For a free special report titled “10 Things You Must Do At Your Dealership To Be Successful” e-mail me at the address below with “10 Things” in the subject line.

When you read the title to this article, did it make you wince? Did it make you a little angry? For most of you, you have already let your resolutions go to the wayside with empty promises. The good news is that you can achieve most, if not all, of your resolutions.

First of all, words are cheap. You must truly decide. You are who you decide to be at any given moment. When you truly decide to achieve something, you begin to walk, talk and act more like that person who has achieved the goal you desired. Every day provides you with RPE’s (Recent Positive Experiences) that give you proof you have achieved victory already — only the date and time have not been filled in.

Secondly, you must erase all your limiting beliefs and create a “superstar” mindset. You can’t act in confidence if your mind is telling you that your goal is impossible. You must write down what you want, and then listen closely to what your limiting beliefs are telling you. Write down those limiting beliefs and then erase them. You must start with a clean slate, or your subconscious mind filled with all those limiting beliefs will lead you like an autopilot directly to failure.

Begin to bombard your brain with evidence that what you want to do can happen. Listen to audios, watch DVDs and read positive material that supports your mission. There are millions of examples of people who have accomplished much tougher tasks than anything you can ever dream of and they did not have more talent, knowledge or anything else than you.

Begin to picture in your “mind’s eye” exactly what you want to happen in complete detail. Try to imagine, and then feel the exact emotions you will feel when you achieve your goal. You can dismiss this as silly if you want, but if you are not reaching your goals, you have to look in the mirror and take responsibility for what is truly silly. There are no excuses.

Behind every goal is a desired emotion. That emotion represents something you feel that you want or need. Ask yourself why you desire that. “When the ‘why’ gets strong, the ‘how’ gets easy.” When you know why you want something and what that fulfills in you, you can now begin to plan the daily actions that will lead you there.

You may not be able to determine exactly when you will reach your goal, but you should have a deadline to each and every goal you set. A sense of urgency is a key to achieving success in anything you do. It’s amazing what you can accomplish in a quicker period of time than you would have ever imagined if you give yourself a deadline. The best way I have heard this described is, if you had a gun to your head and had to accomplish this goal by the date determined, would you?

Once you achieve one goal, it will give you competence in how to achieve the next one. Competence = Confidence. Acting confidently in a competent manner each day leads to achievement of your goals. Don’t let another year go by without you achieving what you desire and deserve. Until you decide you deserve your goal, your desire will only be half-hearted. Here’s to you and toasting the achievement of all you desire.

For a free special report on “How To Achieve Your Goals,” e-mail me with the word “goals” in the subject line to info@tewart.com.

The traditional dealership is dead, but some have not had their funeral yet. It seems as though as much as some things change in the auto industry, as many things stay the same. Every week our trainers observe things in dealerships that look and feel like holdovers from the 1960s.

Let’s take a look at some things still commonly observed in dealerships that are outdated and should be changed.

1. Manager Towers

High towers built for managers where salespeople go to get their proposal figures. The common reason for these towers is to create a good observation point of the inventory for managers. What these towers signify is demeaning to salespeople and adversarial to customers. These towers create a manager haven for never moving, as well as an air of supremacy.

Solution: Tear down the towers. Look around your dealership and ask yourself the following question: “What do I see that looks like it’s from the 60s?” Please tear it down.

2. The Big Green Sharpie Deal Proposals

These proposals scream of adversarial “you vs. me” negotiations. The figures seem less real and more of just a thought.

Solution: Use printed or screen proposals with full disclosure.

3. Manager TOs at the End of a Sales Attempt

For those of you who may be new to the auto business, a “TO” means a “turnover.” Old-school selling means the salesperson turns over the customer to a manager when he/she cannot close a deal. Often, the new salesperson is berated for not turning the customer to the manager. The reason is the new salesperson feels as uncomfortable as the customer with this process.

Solution: Manager/Coach/Team Leader is actively involved in the sales process from the greeting of the customer. The new focus is to open the relationship so the sale can be closed. The days of sitting behind a desk and screaming at salespeople to bring a deal are dead. Managers will be hybrid sales coaches, assistants and information providers that involve the sales process, deal process and F&I assistance. No longer will the manager be expected to save a lost deal, but will be involved throughout the process with the emphasis on creating, not on saving. You manage things; you lead people.

4. Seat of the Pants Used Car Inventory Management

The days of the guru used car manager — who knows all the hot cars, market figures for every car on the market, what the correct appraisal is on every trade, what every other dealership is doing and managing the used inventory strictly by feel — is dead. The truth is that person never really existed. It was a myth and a fairy tale. Nobody — and I mean nobody — is that good at what they do.

Solution: If you do not have a used inventory philosophy, system and technology to assist you, you will forever be making mistakes that are, in today’s market, unforgiving. You must use your knowledge combined with inventory technology and up-to-date market data to be relevant in the market. The shocking truth is that the 90-, 60-, 45- or whatever-day turn systems used strictly by themselves are also outdated models that not only do not work, they create problems. Your goals are high sales, profit, ROI and yield — not just turns (more on that subject in future articles).

5. A Staff Full of Professional, “Do it all” Salespeople

This one can actually still be accomplished, but very, very few dealers actually do the things to recruit, hire and train the right people to make this happen. If you have never done this before, you will probably not do this in the future. Don’t kid yourself. Running a help-wanted ad in the newspaper, interviewing candidates without a pre-thought out plan for recruiting, interviewing, testing, screening, training and ongoing development is not trying to develop a staff of professional salespeople.

Solution: The solution for many is something most do not want to hear. For most dealerships, you will never put the amount of time, money and energy to set up a high-level approach to getting and keeping great people. It’s just a fact. The solution is to create a process that involves heavy involvement with team leaders, assistants and technology that narrows the scope of your sales staff. Most dealerships are hiring average to below-average people and expecting them to do a myriad of things they are not only not doing, but not capable of doing. Worse yet, the managers are not showing these people or inspecting the process to make sure it happens. If you are honest with yourself and this description fits your dealership, then you must try something different. The long-term health of your customer base and dealership depends on this.

I invite you to take a moment today and before you get busy with the everyday tasks to take a strong look at your dealership and what is being accomplished or not. Be honest. Are you fighting battle you have never won? Do your salespeople, managers, processes and dealership reek of the 60s and 70s? It may just be time for a funeral.

10 Tips for Recruiting Sales People Successfully

Sales people provide life for all companies. If everything starts with sales people, it only makes sense to make sure that you are recruiting the best potential sales people

Tip 1: Recruit from want, not need. Make recruiting an everyday activity, don’t wait until you need it.

Tip 2: Have a strategy to recruit people all the time. To orchestrate a successful ongoing recruiting program you must first have a game-plan. Plan and develop a flow chart of your desired results. Write down the obvious. You must know why you are looking to create a recruiting strategy. “When the why gets strong, the how gets easy.”

Tip 3: Know who is in charge of recruiting and his/her qualifications. People must be educated on creating and orchestrating a strategy that works. Don’t leave the who and how to chance.

Tip 4: Newspaper ads – the Sunday paper is full of ads for sales people. If you plan on using help wanted ads as part of your recruiting, you must write the ad with the mindset of the good sales person you are looking to recruit. Use two age-old formulas: WIIFM – “What’s in it for me?” and AIDA – “Attention, interest, desire and action” when creating your ads.

Tip 5: Try using several avenues to recruit such as full color newspaper inserts, business journal classifieds, a banner ad on your web site, local colleges, Internet job postings, radio ads, military bases, job fairs and employee referral program. Never leave the vitality of your company to just one avenue of marketing. You must build a marketing web that has many marketing branches to attract good people.

Tip 6: Have an “ideal employee” profile. Know who you are looking for before you find them. When you’ve developed a precise guideline of what the perfect recruit looks like, you can begin your process with that in mind and then remove the emotions involved in interviewing.

Tip 7: Payment plans satisfy base-level needs of the potential recruit. Pay all recruits during training and guarantee them a living wage during their learning curve. Many potentially good sales people are not given the chance to ever enter the business. Lower the barriers of entry in order to find the best people.

Tip 8: Have at least 50 written interview questions. Don’t you show a sales person how to profile customers? Preparation is key to a good interview. Be ready with sub questions to the interviewee’s answers that allow him or her to elaborate and communicate in detail. A good interview will follow the 80/20-rule and allow the recruit to speak 80% of the time.

Tip 9: Test and profile a potential sales person. Anyone who has interviewed people has come across a great interview, horrible employee. A good recruiting strategy must utilize many tools to reduce the emotion and help to make a more logical and quantitative selection. There are many tools today that can be used to gauge the personality, sales aptitude, emotional IQ, intelligence and just about anything else you want to know about a possible future employee

Tip 10: Don’t hire people based only upon resumes. If you want to hire good sales people, recruit and hire based on talent and attitude and teach them the necessary skills.

Recruiting and hiring effectively is a continuous process that is both part science and being creative. Having a consistent plan will make your recruiting a success. 

Price cutting is a self-inflicted wound. Nobody holds a gun to your head and makes you cut your price. I know that many of you are thinking right now: "There is so much competition today that you can't maintain profits," "Everybody is giving everything away," "The salespeople can't negotiate," and "Everybody knows our pricing from the Internet..." Blah, Blah, Blah. Stop whining about price!

Only about ten percent of buyers buy on price alone. For that ten percent, you can decide to lower your prices or let your customers buy elsewhere. Every person who has ever sold anything knows that the happiest customers are the ones that pay you profit, whereas the unhappiest customers are the ones that you gave everything away to. Here's a news flash: You don't have to do business with them. It's your choice.

All things being equal, money will be the customer's final decision. It is your job to make everything unequal. Customers consider the 3 M's: Money, Machine, and Me. What are you doing to elevate the "me" part of the equation? The "me" part of the 3M's stands for you: your process, the dealership, the service, and the reputation. It's the easiest part of the equation to change. Your dealership is unique and your customers need to know why. You have to believe that you are the best and that you are worth more. Many salespeople and sales managers have a flawed, weak belief system. If you don't believe you are outstanding, you will make yourself a replaceable commodity.

Every day you must work as hard on yourself as you do on sales. When you get better, your customers will get better. Do you work on yourself every day in the area of attitude, education, motivation, sales skills, customer follow-up, and marketing? Let's be brutally honest and forget about being politically correct...most sales people stink at their profession. The majority of salespeople never work on the above skills. Can you really tell me that those unmotivated and uneducated idiots are the tough competition? Your only competition is in your own mind.

Recently, while in Las Vegas, I shopped for shoes at Caesar's Palace. At the first store I went to, I noticed the salesperson looked agitated to have to hang up the phone to wait on me. He was extremely rude and did nothing to add value to his store or differentiate himself from other run-of-the-mill salespeople.

The second store I went to, I encountered a sensational salesperson that created rapport, sold value, and quality. He knew his product and made a high price seem like a bargain.

The first store lost two sales and the second gained from the first salesperson's stupidity.

Is the first salesperson and his inadequacies the norm, or was it an aberration? My experience says that unfortunately, he's the norm. My hunch is that your experiences are the same as mine.

Work every day to get better and show it to your customers. Work on your belief system.

Don't be a commodity, and stop whining about price. Price is the easiest problem to solve in the sale.

For your free special report “10 Ways to Overcome the Best Price Questions”, email me at info@tewart.com with Best Price in the subject line.

Do you feel like you are missing out on something? Are you confused as to what the next step is in making your dealership successful? It’s a different ballgame than it was even just a few years ago. The traditional dealership is dead and you must bury it to prosper in the future.

            For years the car business could be a very forgiving business. There was room for a lot of error in a dealership and yet a dealership could still be profitable. Those days are gone. Dealerships cannot be run in only a “seat of the pants”, entrepreneurial fashion anymore. To be successful dealerships have to be measured intensely in four areas – People, Process, Product and Positioning.

People – You must choose a path that works for your dealership philosophy. You must recruit people on a full time basis based upon want, not need. The leadership of a dealership must have a written and executed game plan for recruiting that utilizes online services, job fairs, colleges, tech schools, high schools, web sites, micro-sites, social media, newspaper, mass media and more.

Each dealership needs a detailed plan that includes a) interview questions, b) number of interviews c) personnel trained to interview d) testing methods for potential job skill match e) screening methods f) follow up methods g) initial and ongoing training methods for new hires

Process – Each dealership should have a written and executed process for every part of the dealership – sales process, internet lead process, marketing process, service process, parts process, manager process, used car inventory process etc. As an example, the selling process must be reviewed to make sure it is up to date and matches today’s marketplace. Most sales processes being used today were created in the 50’s and 60’s and have changed only slightly. Meanwhile, for the customer, everything has changed. Information gathering, overall knowledge, shopping process, volume of choices, expectations, value perceptions, lessening of brand loyalty are all things that have changed dramatically.

Every dealership needs to review their process based upon TLC – Think Like a Customer. What are you currently doing in your dealership process that lessens customer trust or ease of shopping/buying. Most dealerships are living in the stone-age when it comes to something as simple as the meeting and greeting of the customer. Nothing in your current process is sacred and the mantra for many things should be “just let it go.”

Product – The days of “Stack’em deep and sell them cheap” are over. Your new and used inventory must be monitored daily using analytic systems and technology that measures not only your inventory but others and market conditions. Many dealers have fought using any type of turn system even though simple mathematics proved you would be better off doing so. Well, the tide has turned again. Turn systems by themselves are now outdated and can even lower your dealerships ROI without other factors involved. Each vehicle is an investment just like a stock or mutual fund and must be analyzed, bought, priced, marketed, sold and eliminated using several conditions. Just saying that you have a 45 day turn system is not good enough anymore.

Positioning – Gone are the days of running display newspaper ads and waiting for traffic to arrive. Your dealership must have a dealership strategy that combines market positioning. Selling vehicles based upon price only will not create long term success. Successful dealers will no longer be able to delegate all of their marketing to an advertising strategy without educating themselves on the marketing and positioning aspects of their dealership.

Dealers will have to massively educate themselves on things such as, direct response marketing methods, copyrighting, multi-step campaigns, integration of on-line and off-line methods, social media, continual customer relationship building strategies, and sales to service continuity programs and retention. Dealers will learn that many advertising agencies do not understand any of these things and simply create lousy to mediocre production and buy the media. Without a well thought strategy using intentional congruence with all of the above mentioned factors you cannot be successful in this and future marketplace.

In the last year, I have asked hundreds of dealers the following questions:

#1 - What are your overall sales to service retention numbers and percentages beyond a first free oil change?

#2 - What are your number of inactive customers and what percentage is that to your overall customer base?

#3 – What is your planned and executed strategy for a continuity program to keep your customers for sales and service?

Here is the sad result. Out of hundreds of dealers, only one knew the answer to these questions. I continually find that dealers and managers do not really know what is going on in their own dealerships and are not doing anything to educate them to change that.

The reality is that the future belongs to dealers who educate themselves more, execute better and understand the value of speed in today’s marketplace. The marketplace of today and the future will continue to be very unforgiving with little room for margin of error, inattention or being slothful. The traditional dealership is dead but the exciting news is your new dealership is waiting to be born.

For a free special report titled “10 Things You Must Do At Your Dealership To Be Successful” email me at info@tewart.com with 10 things in the subject line.

 Death of The Traditional Salesperson– Part 2

                A recent article I wrote titled “Death of Traditional Salespeople” received more response than any article I have ever written.  Judging from the massive response, I struck a nerve with salespeople, managers, business owners and just about everyone who read the article. Based upon the overwhelming response and the huge amount of requests for more information on this theme, I am providing the following article.

                For as long as I can remember traditional sales training has focused highly on certain sales skills such as cold calling, presentation-demonstration, objection handling and closing. This model is outdated and out of touch. The traditional model taught to salespeople has an adversarial tone and combative tone that goes against the grain of basic human communication.

                Selling is not something you do to someone. By my definition, selling is assisting people in finding and understanding a solution to their problem(s). Every buyer has a problem whether it is a want or need problem and it’s the job of the salesperson to guide the buyer to the solution instead of force feeding him with product or services. It’s much easier to practice what I call the “slippery-slide method of selling.”

                If you were at a pool and it had one of those slippery-slides, you would start at the top and slide effortless to the bottom.  In sales, it’s usually the salesperson that puts obstacles in the way of the customer from flowing effortlessly to their destination. The obstacles start in the form of an outdated mindset of “control” and coercive techniques.

                If instead of concentrating so much on outdated word tracks to overpower people, why not concentrate on understanding basic human emotion and thought in assisting the customer rather than fighting him. Let’s start with the most abused skill in selling which is listening. So much of selling is actually just listening. It is a proven part of communication that when most people listen they listen intently for about the first ten seconds and then quickly shift into thinking about what their response  will be. A quick shift occurs in the salesperson that is now self-focused and control oriented.

                To truly listen is to seek to understand based upon complete focus of the customer and their perspective. Perception of the customer is the only reality that matters. It’s not about right or wrong or overcoming objections but about truly understanding the customer and their thoughts and feelings.  From understanding comes a shared goal achieving process with the customer. You and the customer share a destiny rather than acting as opposing players.

 Traditional objection handling techniques stress changing a customer’s thoughts and emotions rather than understanding them and then utilizing those thoughts and emotions to come a winning solution for the customer. I call this paradigm shift “selling form the heart.” Some old school types will read this and think it’s a bunch of psycho-babble and feel good mumbo-jumbo.  To those of you locked in that vein of thought, understand that it’s not my mission to change you, as most adults do not change.  As Jesus said to his disciples, “Don’t tarry too long with the non believers.”

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