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Apr 15, 2011

Stephanie - welcome to having a voice on DealerRefresh! From your response, I have to say, I look forward to you speaking-up more often. That was a fantastic first comment - thank you!

I read the same article VJ did. I read it 3 times because it shocked me so much. It really made me think how backwards our process is and I think you stated that perfectly.

I imagine most of the early Internet Managers started much like I did; simply being the youngest kid on the sales floor who could type. What our bosses didn't realize is that there was more here than just typing skills. We were capable of visualizing full customer engagement without having to have a person sitting in front of us. It was a skill when I started, but I think it is the norm today (maybe my thinking is a little wishful). There is a new problem evolving, and Donna's Automotive News article hit on it: the Internet staff is too good at email. Too many Internet personnel prefer to email than to pick-up the phone. Unfortunately a lot is lost in typed communication and the phone is absolutely the second step in getting a customer, who submits an Internet Lead, in the door. That's a bit of a tangent, but I think it is an important tangent to reveal in this comment string.

To get back to the answer to your question...

In my opinion, it is quite simply a lack of understanding on management's part. Look at your management. Did they grow-up on a computer? Or did they start by selling cars and working up the totem pole in the traditional fashion? If so, it is going to take them some time to adapt to the new landscape. In the interim there is a great workaround called a "BDC." A BDC should be staffed with people who are only responsible for qualifying a lead into a physical customer (put simply: they handle phone and Internet traffic until it is in the store or has a scheduled appointment). These are people who prefer to not work with a customer in person; a staff that compliments a sales floor who only wants to work with a customer in person.

I call a BDC a workaround because the customer has adapted to communicating online and in person, but our main sales employees have not. To get around this issue a BDC is necessary. Some day, I hope, we will hire more rounded individuals who can handle all forms of common communication mediums.

The BDC is also necessary because of the cherry-picking Internet manager you mentioned. He has to cherry-pick because he has too much on his plate. He needs to become the digital expert (eCommerce Director is the common title) who manages the "non-traditional" including BDC personnel.

There is another beast at play too. The month to month mentality. I can write a series of novels on this topic, but will try to limit my response by stating: VISION is required to do good hiring, enforce proper process, and see the light at the end of the road. If it is just about hitting a sales number or gross then you're stuck in 1983. There are too many complexities today to view anything as linear.

Ask your boss if he has a 2 year plan. Ask him what his plan is for market leadership. Ask him when he plans to retire. A good leader has these answers. If he doesn't, then he is just another month to month car guy.

Apr 15, 2011

I've been reading your site for a few years now but never had cause to comment until reading this article. I am an F&I manager, but I still pay attention to salespeople and try to keep current on what's happening in my store and in the stores of my collegues around town. I've come to several conclusions....maybe y'all on this site can provide some feedback and answer a question I have.

It seems that very few stores (at least in my city) have true BDC departments. Everybody still has the traditional ISM or Internet "Department", the guy(s) or gal(s) who handle all the marketing, pictures, email quotes, phone calls, follow-ups and sales of any customer branded as an "Internet" lead. The floor salespeople are relegated to the sidelines and must depend on walk-up traffic to make their living. Doesnt this create the exact kind of resentment and "anti-Internet" attitude of salespeople? When I look at my store and I see the floor salespeople making 2-3K a month and struggling to survive and fighting over the few walk-ins we have and then I see the Internet Manager making over 12K a month (with a 2% close rate for new cars and a 10% close rate for used...he cherry picks like nobody's business) I see why a lot of stores are becoming sour on hiring veterans because of a perceived bad attitude or arent able to keep good people with a lot of experience. If 95% of your customers are "Internet" customers, then why is there only one department in a store allowed to handle them? Think back to the late 90's and early 2000's when Internet departments were in their infancy in car dealerships. If the GM called a sales meeting and said "Hey Billy, you are the only person allowed to take floor ups and sales calls. You will get about 250 opportunities to make a sale every month. The rest of you 15 salespeople have to split the 25 email leads we get every month" how do you think that would have gone over with the staff? My perspective is that the same thing is happening now, just in reverse.

Oh, and what if that same GM said "Just to make it more challenging (and to lower my comp payout) I am going to change the pay plan and make it volume-based." Really??

Maybe this is why veterans are so soured on the concept of the Internet customer? Maybe this is why their paychecks have been slashed? I don't know....but this is what I see in my own store and hear from a multitude of industry veterans from all kinds of stores big and small and from a variety of franchises.

You guys seem to be the experts in your field. Feedback??

Apr 15, 2011

I agree especially with EMPATHY - on both sites. You know we German are known as the sometimes "tough love" guys and galls and we speak it out like we think it - no fluff, no "political correctness" (what is that anyway?). That sales people coming to the conclusion that Internet Leads are slashing their profits and income shows me that something in a dealership's process must be not work well enough. From my current experience, we are converting more and more into an internet store, with front-end profits in the $2K-$4K still achieving, and yes - from Internet leads as well.
It needs to start from the leadership level who explains these opportunities to its sales staff and points out the increasing inquiry flow over the months and years to come. Profit marging too low? - Send your used car director to auctions, who are known for "bargain pricing" (most likely in the heartland and the upper Northern states - instead to send him or her off to Orlando and all the sunny places where top "wholesale" dollars are being paid. So with processes like this (and many more) you can increase demand and still hold gross and make a good paycheck - I see it here at my dealership every pay-period - the typical "mini" commission for Internet Guys is rare.
Otherwise I appreciate very much your comment and nutrition of thoughts you brought in this discussion. Enjoy the Orlando conference!

Apr 15, 2011

All I can say here VJ is that the Professional Sales Consultants are Auto Retail Future, and that they need our empathy. Our innovation, and their books of business and brilliance in face-to-face interactions are a dynamic synergy. And, we must remember also, the traditional Auto Retail Professional Sales Consultant has been the handler of 'the handshake' in Auto Retail Past, is the manager of 'the handshake' in Auto Retail Present, and will absolutely own 'the handshake' of Auto Retail Future. Afterall, the best sales personnel typically ascends to the heights of management, and then on to dealering, and are the fabric of the entire auto retail sector. We must embrace the valuable insights and opinions of these professional sales consultants, and use them to help us manage a conversation that has rendered the traditional auto retail value proposition dysfunctional over the years. At the core of the matter is the conversation leading up to 'the handshake', (which truly has been too "discount" and "price" focused) and I think the experience of this gentleman spanning 20+ years is indicative of just how vital it is that we innovate our way into a better value proposition for all involved. And, OEM's and Dealers, and Vendors all profit because of the 50-50 value proposition 'the handshake' represents between the consultant and the consumer. Put plainly, "nothing happens until something is sold".

Apr 15, 2011

Don’t know about you but when I saw this headline quote “I don’t like to look at a screen. I like to look at a face”, of the latest Automotive News issue and its article NET LOSS : Few dealerships master the art of handling online leads – I almost lost it.

The article written by Donna Harris reflected on several dealerships around the nation and how they handle 3rd party leads and incoming flood of Internet generated leads through other venues. It was a well written piece and gave a very good glimpse on the current Status Quo in our automotive Internet Sales World. Everything was fine until I “stepped” on the quote of a sales person, a sales veteran for more than 20 years of domestic brand.

“I don’t like to look at a screen. I like to look at a face.” is telling me as a leader of several Internet teams, that this Gentleman should definitely not receive any leads. Why – because of his preconditioning and seeing the Internet as the reason (and I quote) “online price competition has slashed his pay in the last few years in half…the Internet has created a cold sales environment”. Wow, and I thought that “off-line marketing oriented sales pro’s” from the past have learned something in the last 7 years.

I actually feel personally offended by the comment made, and by sales people who are seeking reason for their staling performance and smaller pay stubs on the technology site and not by themselves. What they do not understand is that the technology factor is a daily beast, and you need to adapt – whatever it takes and time it will take to get it right.

When I would have had the attitude in 2001 - “I don’t like to look at a screen. I like to look at a face”…guess what, I would have never met my beautiful wife, would never have three tremendous kids, and possible would still sit in Germany and paying 49% income tax. I met my wife 10 years ago on “the screen”, via AOL pen pals, and without having a face attached to the written communication, we hit it pretty much off.

Because I saw the opportunity what the Internet actually was able to give to an open minded person, I met my wife months and months later in the U.S. – when you want it is almost like a mid-funnel automotive buyer, who still is figuring out what model she wants.

Sticking to this engaging “new” medium at this point (a.k.a. email) – hitting the send and the reply button, this initial pen pal conversation went far further then ever anybody had thought it would be possible. We kept it interesting and information was flowing back and forth. Nothing different then an Internet lead inquiry, where you as a sales pro have the duty to keep the communication flow interesting and in timely manner.

So please; You Sales People in the world out there – promise me to start checking on your attitude and tweak it accordingly and show me a virtual smile when you receive an Internet lead. Just don’t judge Internet Leads as “evil”, but see the entire technological metamorphosis as an opportunity to make your email response stand-out and its content count – when you want just see it as your first “firm handshake!”

Dec 27, 2011

I was just at the service dept. Not pleased, but that is the cost for not having a monthly car payment. What I found funny is that when I walked out from the cashier. I stopped to look at a new car even going as far as opening the door and sitting down (huge buying signal in my book), and not one salesperson came over to ask me if I needed help or to ask any questions.

Apr 15, 2011

The Sales Dept. is all about WANT
The Service Dept. is about NEED

I want a new AWD, DVD and NAV... in black... with alloys
I need an alignment, new brakes and tires (yuk)

The marketing pitch for the service dept is very different than sales, yet when you put forth a GREAT service marketing effort, sales dept. benefits.

I need to do a better job with our service pages. TY Alex!

Apr 15, 2011

The Sales Dept. is like the Maternity ward (everyone is happy)
The Service Dept. is like the Cancer Ward (everyone can't wait to get out

D. Rawls · Apr 14, 2011

Andy is on point...the relationship-building of a perfectly synergized team will yield results that grow both fixed and variable departments' bottom lines. And, all of the growth begins with a proactive communications continuum internally. A great value of Andy's comment is the fact that he speaks from a hands-on perspective, and he cites examples of how THE PEOPLE at the dealership are interacting (i.e. appointments with service consultants are handshakes with consumers that may be parlayed into sales transactions or even referrals). Keep up the good work!

aguyler · Apr 14, 2011

Our service department was the bread and butter of our store. Our sales people would come in early just to sit and great customers in the service drive through. Our service reps knew when a customer needed a new car and did a great job flipping them to sales. At the same time, our sales rep would do an introduction with our service reps before they would even do a first pencil.

The way we looked at it, the sales person will see their customer once a year if that, but our service reps see them at least every 3 month/3,000 miles. The higher you can get your expense absorption in fixed ops the more money you have in sales to target current and future customers.

Apr 14, 2011

Alex

Great reminders and I'll be doing a workshop on Fixed Ops Digital Marketing at the Boot Camp this weekend.

Christine Knowles has done a great job creating service marketing videos. If you type into Google "Virginia Beach Oil Change" her video and related microsite are at the top of search results.

Checkered Flag has done a great job using video to communicate the reasons why consumers should service their cars with them. Bravo!

For most dealers, their SEO efforts have not included a focus on fixed ops, but in reality its easy to accomplish strong visibility since dealers are traditional not competing with each other.

Alex Snyder · Apr 13, 2011

There is a deep line in the sand between sales and service. Variable and Fixed Operations just don't live on the same page. Is this true at your dealership?

Why is the divide so deep? Is it because there is a fundamental difference in perceptions? Is it because sales sees the world in shades of grey while service sees the world in black and white?

Or could it simply be that sales only deals with service when a customer is upset with his service experience? Is service just an expense for sales as there are costs associated with vehicle preparation/reconditioning and accessory purchases? Do these add-up to a disgruntled view from sales that translates into service personnel believing all sales people are jerks? Maybe it is the income disparity between each end of the house.

I can list reasons why tensions are high all day long. I lived a lot of them on each side of the line, but we all know these issues need to be buried. There is no other word to describe it but ridiculous. Service is not a waste of time and it certainly doesn't suck.

I prefer to discuss ways to bridge this divide. I can tell you up-front that this bridge is a tough one to walk across. If you are capable of traversing it, you will be rewarded in ways that very few have ever seen in most dealerships.

Sales creates customers; service keeps customers.

The first thing you must do, as a member of the sales division, is realize that your future is dead without service. The transparency the Internet is birthing daily is creating an entirely new population of customers whose purpose in life is to find a reason to rule your dealership out. You might do a great marketing and sales job on the front, but are you paying attention to your retention rate?
Second, think about how service can be aided by marketing. Many service departments still rely solely on direct mail with absolutely no regard for targeting beyond a year, make, model (the "year" might be a stretch). A very simple way for you to help them is with some targeted email campaigns.
Third, consider turning your branding messages into something about service. Of course, you have to have some branding campaigns rolling to do this first. I'll argue that branding is more important than conquesting, but most dealerships put 100% of their ad budgets into conquesting. If you're only trying to get new customers then we need to talk - NOW! If you're allocating your budget to branding messages, then give service a hand. You can brand service and still get your name in the marketplace at the same time. That's a win-win.
Fourth, give service some space on your website. Actually pay attention to those service pages. Those pages don't get a lot of traffic today because you don't have much content there. If your content is a framed-in appointment scheduler, think again; this area needs some love. Give your service people some ownership of the website. They only control the service scheduler, but I'm sure they'd have a great deal to add on the benefits of doing particular services. I bet they'd love to have some content comparing how their franchised-backed shop is far superior to any Pep Boys or Mom & Pop shop. The added content also helps your SEO efforts. You can start this conversation by asking your service manager what his retention rate is (how many of the cars being sold are actually seeing the service bays in xx days). There are other levels of retention your service manager would probably be happy to educate you on - just ask.
Fifth, and this plays on the last part of the fourth point, show genuine interest. I know you have 4,000 Internet leads and 8,000 phone calls to answer today, but it really doesn't take a ton of time to help service get on the right track. Service doesn't change every month. On your website it is mostly a set-it and forget-it bit of content. Customers all add miles and time to their cars, so they are in need of specialized services at specific mileage intervals. All I'm trying to say is service is predictable....it is black and white.
Sixth, get paid on your work. If you put a good effort into aiding service you deserve compensation. However, the best approach to this is to get yourself some fans in the service department before asking the boss for more pay. I suggest getting your service department hooked on a few of the items outlined here by making your work a necessary part of your service department's continued success.

You can absolutely go much deeper with things here. You can setup a series of PPC campaigns for service, film videos about how great the service department is, help them manage their (your) reputation, and simply include them in your marketing efforts.

Service is much easier than sales. There is a lot less bullshit in service because it has more consistency. The next time you need a vacation from the junk in the front, take a trip across the divide and make some new friends....make a bigger paycheck!

What are some of the things you've done to help fixed operations?

Apr 18, 2011

*wasn't Hollenshead's plan

Apr 18, 2011

Agreed TIM was not designed to send cars to auction, but I would guess that was Hollenshead's plan, or why else would they do it?

Apr 18, 2011

Have you ever tried to buy a Hollenshead car on friday in Manheim? They can afford to be aggressive, and we had aggressive bids. It was pushed to us as they would give low bids so we could bid higher, that happened on the junk they didn't want to own.

Apr 17, 2011

My understanding is the TIM appraisal tool is designed to help dealers close more deals, and KEEP retail inventory and attract opportunity they may not have had for FISBO sellers. I think we can all agree that the most contentious part of a sale and when it could go south is at "first pencil". This could remove some of the tention through transparency. I believe the consumer simple wants some logic to the number and the question of "how much is my car worth" ?

I dont believe it was designed to send cars to the auction. If I knew it was a unit I was NOT going to keep for retail and could not re-wholesale it to my local buyers then I would put up on a lift and walk it with a paint meter. That may be 1 out of 20 cars. I think of it as an insurance policy in worst case senerios. I can see where the TIM tool would sure cut down on calls I make to local wholesale buyers on units I dont have much knowledge of or track at the sale. I know that call is costing me $500-$1000 per unit, 4 to 5 times per month.

Apr 15, 2011

Why would they bid it high? If they did they would lose money if the car was returned to them. The process is solid if worked. If it isn't worked...well, you get what you put in it.

Apr 15, 2011

Who has control of the bid price? Hollenshead! If I were them I would be bidding high trying to get cars to sell. Ever try buying a Hollenshead car at the auction? They know what they are doing. It was pushed to us so it would work like Jeff said, but if you look at it from Hollenshead's point of view why would they care if we look like the good guy offering more. Great concept, like everything it has its flaws.

Apr 12, 2011

I would think it can be a positive IF the number comes in near the KBB price. In the screenshot it shows good as $11,325. If the offer comes back at $9500 what is the chance of seeing that guy in your store?

Apr 9, 2011

There are benefits to it, and in most cases the pros should out way the cons. For us we had managers using it that relied on it as a way to appraise vehicles. We had a couple that gave us higher than expected amounts, and then when we took them to manheim they made sure to find more wrong with the vehicle than what we put down, thus lowering the bid.

Apr 9, 2011

TIM, good for autotrader, good for manheim, good for Hollenshead, not so good for joe dealer.

May 6, 2011

Have talked to some CDN dealers using VAuto and they are all blow away

bpulseadmin · Apr 9, 2011

Montreal (QC) & Oak Brook, IL, April 5, 2011 – TRADER Corporation, Canada’s leading destination for new and used vehicles, has launched TOptimizer as part of an exclusive partnership with vAuto, the U.S. industry leader in used vehicle inventory management. Canadian automotive dealers can now benefit from vAuto’s award-winning online Live Market View, which provides valuable information through its analysis of used vehicle markets with up-to-the minute data. TOptimizer is based on vAuto’s online Live Market View and includes stocking, appraisal and pricing modules. More than 3,500 automotive dealers in the United States utilize vAuto to optimize their used vehicle operations.

TOptimizer will provide Canadian dealers real-time information on current used vehicle supply, demand and market pricing in their local marketplace. The vAuto suite of solutions will compliment TRADER Corporation’s existing Dealer Smart Solutions product offering. Dealer Smart Solutions is a fully integrated online platform helping automotive dealers promote their inventory to drive traffic and optimize their business efficiency and speed to market.

“Our priority has always been to offer best-in-class business solutions that constantly adapt to today’s fast-evolving market,” says Normand Théberge, Vice-President, Marketing at TRADER Corporation. “Our partnership with vAuto allows our TOptimizer’s sophisticated online modules to help our customers quickly grasp current market conditions and better manage their used car inventory.”

“vAuto is excited to offer Canadian dealers a competitive edge through Live Market View,” says Keith Jezek, president of vAuto. “As car buyers research and compare cars on the Internet, it is essential for dealerships to understand how their inventory compares to the market. TOptimizer featuring vAuto will allow Canadian dealers a better decision-making process resulting in increased profit margins.”

AutoTRADER.ca in Canada is not affiliated with AutoTrader.com, the United States-based online vehicle marketplace that is the parent company of vAuto. The TOptimizer solution is now available to all dealers in Canada.

About TRADER Corporation

TRADER Corporation is a leader in print and digital vertical media in the automotive, real estate and generalist verticals. The Company offers a broad set of services such as inventory management, web solutions, optimization of media spend and lead-generation campaigns. Its flagship site AutoTRADER.ca reached over 2M unique visitors monthly in 2010. The new Autos.ca website dedicated to new cars is the online destination of choice for automotive information and advice on making smart car purchase decisions. TRADER’s main brands include AutoTRADER.ca™, Autos.ca™, autoHEBDO.net™, BuySell.com™, and Renters Guide. TRADER Corporation is owned by Yellow Media Inc. (TSX: YLO). For more information, visit www.TRADERCorporation.com.

About vAuto

Headquartered in the Chicago suburb of Oak Brook, IL, vAuto also maintains a research and development center in Austin, TX. vAuto’s innovative “Live Market View” technology allows dealers to manage their used-vehicle inventories based on actual supply-and-demand for their specific market. Today, more than 3,500 dealerships across the country use vAuto’s pricing, appraisal, stocking and merchandising systems. Dale Pollak, vAuto’s founder, is the author of two books featuring best practices and strategies for the used car department, Velocity: From the Front Line to the Bottom Line and Velocity 2.0: Paint, Pixels & Profitability. vAuto is a wholly owned subsidiary of AutoTrader.com. Additional information about vAuto is available at www.vauto.com or call 877-828-8614.

Apr 5, 2011

http://www.pagesjaunes.fr/pro/avis-global-hardware-51724364-26201200-L07505600 Global Hardware

yes I agree with the above mentioned

bpulseadmin · Apr 3, 2011

CarMax EasyShop Makes Car Buying Easier – Again

RICHMOND, Va. (March 28, 2011) — CarMax, Inc., the nation’s largest retailer of used cars, has once again dramatically improved car buying with CarMax EasyShop at carmax.com. Launched exclusively in Raleigh and Fayetteville, the newly added functionality empowers customers to complete more of the car shopping process at their convenience and from any computer before arriving at the store.

Join our discussion on this over on the DealerRefresh Dealer Forums - CarMax EasyShop - Is this the future of car buying?

Carmax.com currently allows customers nationwide to search CarMax’s more than 25,000 vehicles by type, make, price, features and more. Once customers find a car that matches their needs, they then must go into a store to move further along in the car buying process.

Now with CarMax EasyShop, customers in Raleigh and Fayetteville can do all the following online:

Place a hold on a vehicle for up to three days
Schedule a test drive
Apply for financing and quickly receive a decision online from CarMax and third-party finance providers
Initiate and pay for a transfer of a vehicle from any CarMax store to your local store
Choose a MaxCare extended service plan that matches expected budget and driving needs
Schedule an appraisal of another vehicle
Get started on your paperwork before going to the store

“CarMax believes our customers should be in the driver’s seat when buying a car, and is now providing them more control and convenience through CarMax EasyShop,” said Tom Folliard, CarMax chief executive officer and president. “Customers can reduce the amount of time they will need to spend in the store by securing financing and completing some of the necessary paperwork before coming into the store.”

The company selected Raleigh and Fayetteville to pilot CarMax EasyShop due to a strong history with the community and existing consumer awareness levels. CarMax’s Raleigh store was opened in 1994 – the second store for the company.

Buyers can be confident using CarMax EasyShop because there is no commitment to buy, and customers can start the online steps whenever and where ever they like. CarMax EasyShop is secure and personal information is always protected. Customers can also be reassured with CarMax’s free vehicle history reports, five-day money back guarantee and 30-day warranty on every vehicle.

CarMax EasyShop also provides the information customers need upfront so they can make an informed decision. As buyers move through the online buying process, CarMax EasyShop calculates costs including tax, title and fees. CarMax associates are also available to help online customers by phone from 9 a.m. to 9 p.m. daily.

CarMax is encouraging customers interested in learning more about CarMax EasyShop to visit www.carmax.com/easyshop, connect with us on Facebook and on Twitter at @CarMax and using the hashtag #carmaxeasyshop. An informative video about CarMax EasyShop is also available at Login to view embedded media View: http://www.youtube.com/watch?v=BpqxZFI7LfM
.

Join our discussion on this over on the DealerRefresh Dealer Forums - CarMax EasyShop - Is this the future of car buying?

About CarMax
CarMax, a member of the FORTUNE 500 and the S&P 500, and one of the FORTUNE 2011 “100 Best Companies to Work For,” is the nation’s largest retailer of used cars. Headquartered in Richmond, Va., CarMax currently operates 103 used car superstores in 49 markets. The CarMax consumer offer is structured around four customer benefits: low, no-haggle prices; a broad selection; high quality vehicles; and customer-friendly service. During the twelve months ended February 28, 2010, the company retailed 357,129 used cars and sold 197,382 wholesale vehicles at our in-store auctions. For more information, access the CarMax website at www.carmax.com.

http://forum.dealerrefresh.com/f43/carmax-easyshop-future-car-buying-1727.html#post13749

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