Volume 7 Issue 3
Volume 7 Issue 3
In This Issue:
2 Mission Statement 20 Using Video to Improve On The MOve STaff:
Board of Directors F&I Performance
By Bob Elbrader, Intravision Dave Tribble, Editor-in-Chief
4 Drive On
Shayne Wilson, President 22 Think You Know A Lot Dawn Palzewicz, Art Director
About Cars? email@example.com
5 Advertiser’s Guide By Tom Tortorici
6 Sports “Big Wheels” 24 Wishing, Hoping and Pam Schrodel
Talk About Their Praying? COnTribuTing WriTerS:
Favorite Cars! By Scott Dreisbach,
Carlos Alvarez, Brian P. Bentz,
Scott Dreisbach, Bob Elbrader,
10 Difference Makers Tom Tortorici, and Tom Webb
By Carlos Alvarez, 26 Automotive Industry
American Financial & On The Move PhOTOgraPhy:
Automotive Services, Inc. David Pano
30 New Payment COnTaCT:
12 As Inventories Shrink in Processing Agreement MAADA
One Market, Vehicle Can Mean Better Rates, 400 Interstate North Parkway
Values Rise in Another Growth Opportunities Atlanta, GA 30339
By Tom Webb,
Manheim Consulting 770-916-1741
32 Academy Schedule www.maada.com
14 AutoTrader.com Trade-In
Marketplace On The Move is published four times annually by the
Metro Atlanta Automobile Dealers Association.
18 Fraud in the Dealership
Any reproduction in whole or in part of the contents
Part III - Hitting the
of this publication is prohibited without prior
Brakes consent of the Metro Atlanta Automobile Dealers
By Brian P. Bentz, CPA, CIA, Association.
The appearance of advertisers does not constitute
an endorsement of the products or services by the
Metro Atlanta Automobile Dealers Association.
On The Move 2010
Board of Directors
The Metro atlanta automobile Dealers association is made up of over 160 franchised
new car and truck dealers from the 18 county Metro atlanta area. The association
and its members strive to uphold the highest standards of honesty and integrity and
continuously work together to improve the car buying experience for Metro atlanta
Bo Scott, consumers.
Walter Bridges Jim Ellis Ernest Hodge Don Jackson
Richard Pugmire Steve Rayman Allan Vigil Bill Voyles
Well, look no further than the Metro Atlanta Automobile Dealers
Association’s 40,000 square foot office and training facility.
MAADA offers complimentary meeting space to Ad Groups.
Our three large classrooms and one board room can accommodate meetings from 12 to 50 people. Each has
high-speed internet connection, ceiling-mounted equipment with DVD, video and surround sound capability.
Call us at 770-916-1741 about availability, or send an email to firstname.lastname@example.org.
On The Move 2010
Welcome to the third edition of ON THE MOVE magazine for 2010. Here is some of the latest news from the Metro
Atlanta Automobile Dealers Association.
NADA’S EDUCATION & TRAINING MEETING
TO BE HOSTED BY THE MAADA
MAADA will be the official host of the NADA’s Education & Training Focus Group Meeting for Automotive Trade Association Execu-
tives (ATAE) on August 4-6, 2010. This is an annual event to evaluate and schedule education programs for both state and metro
associations across the U.S. Progressive associations with education and training departments attend these meetings to evalu-
ate products and services that they want to recommend to their dealer members.
The MAADA is recognized nationally as one of the top associations for training. That’s why Atlanta was chosen as the host city
for this meeting.
We’re expecting over 25 dealer associations to make the trip here. At press time, the following have committed: Alabama, Alba-
ny (NY), Central Florida, Colorado, Georgia, Los Angeles, Maryland, Minnesota, New England, Pennsylvania, Philadelphia,
South Carolina and Washington D.C.
Wilson, We are very fortunate to have so many friends of this Association who have come forth as sponsors for this important
President industry event. The following companies have currently signed up: American Financial & Automotive Services, Au-
toTrader.com, Black Book and BlackBook.com, Bulldog Marketing, DealerTrack, First Data, M5 Management
Services, Inc., Manheim, and Tommy Gibbs & Associates.
29th ANNUAL ATLANTA INTERNATIONAL AUTO SHOW
The official dates for the next Atlanta International Auto Show are Wednesday, March 23 through Sunday,
March 27, 2011.
Due to scheduling conflicts at the Georgia World Congress Center, the show will return to five days in 2011
and 2012. We’re planning a strong media blitz that will attract large crowds during all five days of the
For the first time ever, MAADA will be producing the annual Auto Show Guide. It will be packed with plenty
of exciting features on the different manufacturers, vehicles and show attractions. MAADA dealer mem-
bers will also be able to advertise in this guide at a more reasonable price than in
the past. Our association representatives will be making contact with you during
the coming weeks about this great opportunity.
GOOD LUCK, JANET!
We all miss Janet Brown, our former Administrative Assistant, who departed the com-
pany in late May after over 16 years of service.
Janet plans to take a year long break from full time employment so that she can spend
time with her parents, both in their nineties. She will also escape that long daily com-
mute to and from Lawrenceville, which, as we all know, can mean over three hours Janet Brown
behind the wheel on bad traffic days.
Thanks for your loyalty and for doing a great job for this Association, Janet.
We wish you the best in all of your future endeavors.
On The Move
advertiser Page #
American Financial 11
Auto Show Guide 21
AutoTrader Inside Front Cover
First Data 15
Guardian Products 5
Manheim Auctions 3
WSB-TV Back Cover
The Virtual Academy Inside Back Cover
On The Move 2010
With football season right
around the corner, ON
THE MOVE takes time out
for some “Car Talk” with
Georgia’s “BIG 3” College
We thank the following for their valuable assistance:
WSB-TV’s Chuck Dowdle; Allison George, Associate AD for
Communications, Georgia State University; and Dean
Buchan, Assistant Athletic Director/Media Relations,
1966 Oldsmobile 98
Georgia State Coach 1951 Ford
Bill Curry Bought an
OLDSMOBILE 98 with Colts, winning again in 1971 in a nail biter against the Dal-
His NFL Signing Bonus las Cowboys.
Curry drove the 1966 Oldsmobile for five years. Dodge then
began supplying him loaners every year, and his vehicle of
choice was the Charger.
After 10 years of playing in the NFL, Curry moved into
Coach Curry recently gave us some of his valuable time to coaching as a career. His first job was as an assistant at his
talk about something other than football. The topic was alma mater Georgia Tech in 1976. He returned to Green
cars. Bay as an assistant in 1977-79.
hen compiling a list of native “The first car I ever owned was a ’51 Ford, dark green,” said Curry returned to the college ranks in 1980 when he was
Curry. “It already had lots of miles on it when I got it. It named head coach of Georgia Tech. He left the Jackets
Georgians who are all-time
had overdrive, which meant if I got a running start on the after seven seasons to take the head coaching job
football greats, Bill Curry has freeway I could go 100 miles an hour, which I’m ashamed at the University of Alabama in 1987, replac-
of now. I really enjoyed that car.” ing Ray Perkins. Bill’s team won the SEC
to be recognized as one of the most success- Championship during his final season
ful. How many individuals have lettered for Bill purchased his first new car in 1965 after he was drafted with the Tide in 1989. The following
by the Green Bay Packers. He used his signing bonus of season, he became the head coach at
Georgia Tech, played in three Super Bowls $12,500.00 to buy a gun metal blue Oldsmobile 98 that the University of Kentucky, where he
(winning two), played in two NFL Pro Bowls, cost $5,000.00. It was a happy event for Bill and his wife. remained for seven years.
Curry said, “Carolyn and I thought that we had died and
coached at four different universities, won an gone to heaven. We loved that car!” Bill remained active in the college foot-
SEC Championship, and has been honored as a ball spotlight after leaving coaching at
“I just thought that the Oldsmobiles were beautiful, and at Kentucky. He was a television analyst
member of the State of Georgia Sports Hall of that time, I thought that anybody who could buy anything and contributing writer for ESPN from
Fame? And that’s just scratching the surface other than a Ford or a Chevy was really moving in high cot- 1997 – 2007.
ton. It was a very big deal to us,” added Curry.
of an illustrious career. The Georgia State University
While with Green Bay, Curry had the chance to play for coach currently drives a 2005
Coach Curry may have his greatest challenge ahead as the legendary Coach Vince Lombardi. He was a member of Lexus 430 SEL, purchased
first head football coach of the Georgia State University the Packer squad that won Super Bowl I in 1967 against from Chattanooga Lexus.
Panthers. The Panthers will play their first game against the Kansas City Chiefs. He returned to the Super Bowl two
Shorter University on September 2nd at the Georgia more times during the next four years with the Baltimore
On The Move 2010
2010 Chevrolet Tahoe
ang evrolet M
rd Must onte Carlo
he number one should be Paul In 2002, Johnson took command of the football 2009, finishing first in the ACC after a victory
Johnson’s lucky number, since program at the U.S. Naval Academy, where his over Clemson. This sent the Jackets to their first
team bested Army for six straight seasons, and ever BCS berth in the Orange Bowl. With a final
the Georgia Tech head football
the Midshipmen led the nation in rushing for record of 11-3, Johnson was again named ACC
coach has experienced so many firsts three consecutive seasons. One of the great- Coach of the Year.
during his successful career. est memories in Navy football history is their
46-44 triple overtime victory over Notre Dame Coach Johnson now has two favorite vehicles
Coach Johnson also experienced an impor- in 2004. This marked the Middies first victory here in Atlanta. His 2010 Tahoe from Jim Ellis
tant first in 1980, one year before he started over the Irish since 1963. This epic victory dur- Chevrolet is his favorite when it comes to daily
his college coaching career as an assistant at ing a 10-2 season helped Johnson win the 2004 travel, while on seven Saturdays each year it’s
Lees-McRae Junior College in Banner Elk, North Bobby Dodd National Coach of the Year award. the legendary “Ramblin’ Wreck” that
Carolina. That’s when he purchased his first new leads the Jackets into battle at
car – a Chevrolet Monte Carlo. When asked why Paul returned to the state of Georgia in Decem- Bobby Dodd Stadium at Grant
he decided upon this vehicle, Johnson said, “I ber 2007 as the 12th Head Coach of the Geor- Field.
liked the style.” gia Tech Yellow Jackets. Little was expected of
his squad during his first season in 2008, but
Prior to making this first new car purchase, the the Jackets responded with a 9-4 record and a
Western Carolina University graduate was driv- share of the Coastal Division title in the Atlan-
ing a 1969 Ford Mustang. tic Coast Conference (ACC). Their final regular
season game was a thrilling come from behind
Coach Johnson won two I-AA National Titles victory over state rival Georgia. It was their first
while head coach at Georgia Southern Univer- win over the Bulldogs in seven seasons. Shortly
sity from 1997 - 2001 . He also received 12 dif- afterwards, Coach Johnson was named ACC
ferent Coach of the Year awards during these Coach of the Year.
five seasons in Statesboro.
The Yellow Jacket proved to be even better in
2010 Ford F-150
ou could say that the University The legend of “The Scamp” continued to live The Univer-
of Georgia’s Mark Richt started on after Mark graduated from Miami in 1982. sity of Georgia
That’s because it was his farewell gift to the re- knocked at Mark’s door
his own “Cash for a Clunker”
maining Hurricane players. in 2001, offering him the head
program in South Florida over 30 years coaching job. He accepted and has
ago. In 1985, Richt joined the football coaching staff since responded with 90 victories. He has also
of Bobby Bowden at Florida State University won two Southeastern Conference Champi-
The Nebraska born Richt purchased his first ve- (FSU) in Tallahassee. It was at FSU that he met onships, four Eastern Division Titles, two SEC
hicle in 1980 while attending the University of the former Katharyn Francis, who he married in Coach of the Year Awards and finished in the
Miami on a football scholarship. He pooled his 1987. top 10 five times during his nine seasons with
money with a football teammate to purchase the Dawgs. Above all of these accomplish-
a used Dodge Dart Swinger for the incredible Finding a vehicle with good gas mileage was ments, Coach Richt is
low price of $150.00. Richt said that buying the goal when the newly weds purchased their recognized as a great
this car, affectionately known as “The Scamp.” first new car in 1988. They selected a four-door humanitarian.
proved to be a smart investment for the co- Honda Civic from Proctor Honda in Tallahassee.
owners. That’s because they quickly made This charcoal colored vehicle fit the bill for the Mark and Katharyn
their investment back by leasing it to fellow Richts, with over 10 years and 100,000 miles of live in Athens and
Hurricane teammates for $5.00 per day. service. are the proud par-
ents of four children.
The Coach laughed when he recalled how the Mark left FSU in 1989 to become the offen- The Coach currently
Dart Swinger was damaged by a mischievous sive coordinator of East Carolina University drives a Ford F-150 Lari-
teammate. This player was a bit too overzeal- in Greenville, N.C. He returned to Tallahassee at truck from Akins Ford.
ous about team spirit when he dumped an en- the following year to take the same position
tire can of orange paint on the car (the Hurri- with Bobby Bowden’s staff. While at FSU, Richt
cane team colors are green and orange). Mark coached two Heisman Trophy winners (Quar-
said that it was also quite a task sanding the car terbacks Charlie Ward and Chris Weinke) and
afterwards and repainting it white with a paint was part to two national championships (1993
brush. Even an Earl Scheib paint job was too and 1999).
costly for these college kids.
On The Move 2010
By Carlos Alvarez
Carlos Alvarez is a Deal-
Manager with American
Financial & Automo-
tive Services, Inc. Car-
los can be reached at
very day, there are new challenges faced 800.967.3633 or by e-
in the business office. Some of these mail at CAlvarez@AFAS-
challenges are controllable and some
of them are not. As dealerships throughout the
automotive industry continue to move in a posi- has a large repair bill. The ser- which customers to contact first. It is impor-
vice advisor tells the customer tant to do this in order to be consistent with
tive direction, the need for the business office to that he/she should look into the follow-up process.
recover becomes greater. It is time to make a purchasing a service contract
to protect against future or fur- 4. Write a variety of follow-up letters that
difference. ther unexpected repair costs. cover specific products such as service con-
The big question is, “How?” Without being At this point, the customer is tracts, scheduled maintenance programs, and
able to give one simple answer, there are sev- then turned over to the business manager. one that focuses on ancillary products. The
eral great solutions that can make a difference. best way is to have enough letters prepared to
To begin, business managers need to focus on The problem lies from within the follow-up cover most situations. Be creative and create
growing the income level in the business of- process itself. There is little to no consistency need in the letters.
fice. Aside from the traditional methods, now with the effort being placed on capitalizing
more than ever, a business manager has to these opportunities. It is a one-shot deal, just 5. Determine the most effective way to deliv-
think outside the box. One thing that comes as if the customer was sitting in the business er the message to the customer. In today’s so-
to mind is finding more customers to buy the office during the delivery of the vehicle. Here ciety, most customers communicate via e-mail.
products and services offered. But where do is where preparation and organization will pay As a cost-cutting measure and time-saving op-
you find these customers? off in the end. To make a difference, consider portunity, send an e-mail to the customer. Be
these options: sure to include the message in the body of the
Have you considered your own customers? e-mail rather than as an attachment. Make it
That’s right, your own customers! Even the 1. Obtain a report that lists all of the deal- a point to enter the customer’s e-mail address
top producers in the business do not run 100% ership’s unsold customers. This list should into the DMS system so that this information
penetration on the sale of any product, unless include customers that did not buy all the can be accessed in an easy-to-read report. If
it is a complete give-away product. Even then, products that were presented to him/her dur- the customer does not have an e-mail address,
it may be a give-away to the customer, but not ing the delivery of the vehicle. It also includes mail him/her a copy of the letter.
the dealership. Someone must incur the cost. customers that have purchased a vehicle from
Think about it. There is not a better opportu- the dealership within the last 24 months. It is The key to this entire follow-up process is for
nity than contacting current customers. These surprising how many opportunities are avail- the business manager not to sell himself/her-
customers have a good relationship with the able. self short by only focusing on service contracts
dealership and are more likely to be receptive or one particular product. Include everything.
to receiving product information. 2. Upon reviewing the list, consult with the You do not know what may have changed
service manager and find out when the last since the customer took delivery of his/her ve-
Next comes the phase where preparation and time the customer brought his/her vehicle into hicle. The customer may have shown no inter-
organization are key. In many dealerships, busi- the service department for any type of repair est at the time of delivery because it may not
ness managers attempt to send out letters to or maintenance. Remember, the business have been in the budget. The customer may
customers whose manufacturers limited war- manager is controlling how this part of the not have been sold because he/she did not
ranties are about to expire in an attempt to try business will succeed. A good place to start is see the need or value in the products offered.
to sell them a service contract. Very rarely will with customers who are still utilizing the deal- The business manager has the opportunity to
a customer walk into the dealership and ask to ership’s service department. change that now. Make a difference with your
purchase a service contract. Most often, there customers today!
is the customer in the service department that 3. Put together a written game plan that lists
Trusted Partners. Proven Results. 11
F&I Development Programs
Automotive Training Academy
Revenue - Generating F&I Products
800.967.3633 | www.AFASinc.com On The Move 2010
By Tom Webb
Tom Webb is the chief economist for Manheim Consulting. Contact him at
Thomas.email@example.com, follow him via Twitter at www.twitter.com/
TomWebb_Manheim, and read his blog at www.manheimconsulting.type-
’m reminded of Newton’s Third Law of Motion when I look at what’s happening in the new and
used vehicle markets these days.
For every action, there is an equal and opposite reaction.
Wholesale used vehicle prices (on a mix-, mileage- and seasonally
In the case of the current car markets, it translates like this: Historically adjusted basis) rose again in May, with the Manheim Used Vehicle
low new vehicle inventories equal historically high used vehicle values. Value Index reaching an all-time high of 121.0 (January 1995 = 100),
representing a 10.9 percent increase from a year ago.
As recently as May 1, the new vehicle inventory unit count slipped to
2.1 million units, or a 56-day supply. On a 12-month rolling basis, the May’s strength was driven, in large part, by vehicles in the lower and
inventory count fell below 2 million units – the lowest level in more middle price tiers; but prices for late-model vehicles also remained
than 35 years of record-keeping. strong, thanks to low new vehicle inventory. It’s a situation that
should remain fairly consistent for the foreseeable future -- continued
Clearly, a historic change has occurred now that manufacturer restruc- restricted levels of wholesale inventory will provide support to future
turings have allowed a movement away from pushing inventory onto wholesale values.
Not surprisingly, earnings reports from the seven publicly traded
As members of the Metro Atlanta Automobile Dealers Association no dealership groups showed strong used vehicle operations in the first
doubt can attest, the positive impact on used vehicle values is hard to quarter of 2010. On a sales-weighted basis, same-store used unit retail
overstate, as dealers are able to: volumes rose more than 12 percent, the biggest percentage gain ever
• secure higher new vehicle transaction prices,
• keep their focus on selling used as well as new vehicles, and For all the challenges and industry turmoil dealers have endured in
• free up working capital that otherwise would have been allocated recent years, this is all welcome news: There’s no time like the present
to new vehicle inventory. to be in the used car business.
On The Move 2010
Launching a New Way for Consumers to Dispose of Vehicles
and for Auto Dealers to Attract Customers and Used-Car Inventory.
any car buyers go into the trade- options, other upgrades and maintenance for new ways to connect car buyers and car
in process with a lot of questions. information and details about the condition, sellers,” said Brian Skutta, the TIM General
How much will I get for my trade in? including any major repairs or accident dam- Manager. “The Trade-In Marketplace does just
How does the dealer determine the value of age. that by taking the mystery out of the trade-in
my trade in? Why are the values I see online l The tool will calculate a price based on process. For car shoppers coming to our site,
frequently different than what the car dealer historical transaction data for hundreds-of- it provides a convenient way of disposing of
has offered me? thousands of vehicles and up-to-the-minute a vehicle. For our dealers working with the
supply and demand information and produce program, it helps attract customers by provid-
Dealers also have questions. How can I a printable purchase offer. The system will ing a transparent and hassle free trade-in or
source quality used-car inventory? How can I also provide consumers accessing the system selling experience and provides a no-risk way
prove to customers the realistic value of their at home a list of participating dealerships. of sourcing used-car inventory.”
trade in? How can I help my customers afford l The seller can take that purchase offer to
the cars I’m trying to sell? a participating dealer in the area or, if the More than 700 dealers are currently signed on
seller is using TIM at a dealership, to a dealer to the TIM program in the markets AutoTrad-
AutoTrader.com’s Trade-In Marketplace (TIM) representative right there. er.com has already opened. By the end of the
aims to take the mystery out of the trade-in l The dealer will inspect the car to confirm year, AutoTrader.com will have rolled TIM out
process by giving consumers a guaranteed that it matches the description provided by to most areas in the United States.
price for their vehicle redeemable at auto the seller and then write the seller a check for
dealerships participating in the program. It that amount. Auto dealers seeking more information on
also works to help dealers solve some of the l The seller can use the funds towards the the TIM program can visit http://tradein.
challenges they face every day in car buying purchase of their next vehicle or simply walk autotrader.com for more information or speak
and selling. away with a check. with their AutoTrader.com representative.
For consumers, the program offers a no- For the car dealer, participating in the TIM
haggle way to get a value on their car, which program is no risk. On the sales end, once
they can turn into guaranteed cash or toward the TIM transaction is completed, a
down payment on a newer car at a participat- dealer has a customer on the lot
ing TIM dealer. For dealers, the marketplace who has a check and needs a
offers another avenue for attracting potential car. Now there’s a hot pros-
customers to their lots, a new way of getting pect! Then the dealer has
quality used-car inventory and it positions the the option of keeping the
dealership as a customer advocate offering just-traded-in car and
one more solution with which a buyer can selling it. If the dealer
dispose of their current vehicle. doesn’t want to keep
the car in inventory
Here’s how it works: for sale, AutoTrader.
l An auto seller accesses TIM at http:// com will buy the
tradein.autotrader.com or directly in the par- car for the exact
ticipating dealership via a stand-alone kiosk amount the
or desktop icon. The seller or the salesperson dealer paid for it.
working with the seller inputs information
about the vehicle, including the make and “AutoTrader.com
model, the model year, major factory-installed is always looking
Pictured in the photo: (L) Mark Welch, GM Hiley
Mazda Volkswagen of Arlington; (R) Richard Padd-
ack, AutoTrader.com Advertising Consultant.
On The Move 2010
RIDE THE “BIG WAVE”
OF ONLINE TRAINING!
urfing on the internet for the right online automotive training service can be a bit confusing.
In surfing terms, it’s easy to “Wipe Out” if you make the wrong decision.
The Virtual Academy of Automotive Professionals is, unquestionably, your best choice to ride the
“Big Wave” of online training services. That’s because its curriculum is the only online training avail-
able that has been developed by dealers for dealers. It will also give your crew the opportunity
to learn from over 300 different workshops in Sales, Management, F&I, Collision, Service, Legal
and Remarketing. These presentations include on-demand streaming videos, downloadable
programs, PowerPoint slides, interactive email contact and testing.
Many dealers and associations have signed up for The Virtual Academy since it was
launched over three years ago. They have found its broad curriculum to be invaluable.
“It has always been our goal to offer a multitude of training programs for employees
in all areas of the dealership,” states Randy Nelson, Director of The Virtual Academy.
“In fact we have also produced a number of different Sales Meetings that can be
used during those regular rituals within the dealership.”
Andy Jones, Dealer Principal of the Gerald Jones Dealer Group in Augusta, finds
this online service perfect for his sales staff, adding. “It’s very convenient and
timely. All four of our dealerships make The Virtual Academy an important part
of our daily sales meetings.”
Subscribers to The Virtual Academy are also amazed that a service of this qual-
ity is available at such an incredibly low price.
Shayne Wilson, President of the Metro Atlanta Automobile Dealers Associa-
tion, remarks, “The Virtual Academy has given dealerships a much welcomed
alternative to overpriced online training. It’s commonplace for some online
training companies to ask for as much as $12,000.00 a year for their services.
We have responded with a service for $2,400.00 annually. We only require
that dealerships agree to a one year contract for this special pricing.”
Dealers have also found many additional savings beyond the low subscrip-
tion price of The Virtual Academy.
“Times have certainly changed since a dealership had to spend thousands
of dollars for just one day of onsite training,” says Nelson. “The dealership
also had to cover the trainer’s travel, per diem and lunch for the whole
class. It’s quite ironic that just one day of onsite training could cost as
much as one year of The Virtual Academy for the entire dealership.”
David Bourne, Owner of Clay County Chrysler, Dodge and Jeep in Lin-
eville, Alabama, feels that there is a big advantage using online training.
He said, “This is a much better way to train than live classes because the
employees can learn at their own pace. Also, we can work in small groups
to review the class info and exchange ideas we have learned.”
There will soon be many new employees added to the dealership work
force and these new hires will have an advantage over those of the past
thanks to the broad curriculum of online training workshops available.
Start developing your team today. Please call 1-877-422-2236, or contact
us via email at firstname.lastname@example.org to set up your personal demon-
THE VIRTUAL ACADEMY PROGRAMS & WORKSHOPS
SALES SALES MEETINGS SERVICE
Professional Selling Skills: Talking Risk and Maintaining Focus Service Advisor “Selling Service”
Salesperson’s Job Description Love Your Job Fundamentals of the Sales Process
Understanding the Customer: Achieving Greatness Understanding The Customer
- Buying Motives Handling Anger Positively Customer Retention
Need Buyer Building Self Image Appointments & Appointment Systems
Status Buyer Visualization Handling Incoming Phone Calls 3 Part Series
Excitement Buyer Can You Predict Your Future The Selling Process
Secondary Buyer Self Confidence Selling Service on the Drive
- Behavioral Profiles High Energy Listening Skills & The Walk Around
Dominant Profile Negative Thinking The Service Walk Around
Amiable Profile Fear of Success Responding to Resistance
Expressive Profile Focus on the Positives The Close
Analytical Profile Failing Successfully Finish The Job
- Activating Events Rumination The Domino Effect
- Hot Buttons The Managers Role The Service Menu Features & Presentation
Today’s Market When You Talk to Yourself Building Value in OE Parts, There is a Difference
Overview of the Sales Process Personal Success Preventing Common Brake Problems
Reception Procedure Effective vs Efficient Diagnostics, A Logical Approach 4 Part Series 17
Reception Overview Selling Yourself Selling Service in Difficult Times
Reception Tips Making Choices 3M Non Lead Weights
Reception Handling Resistance Buying Motives Tire Wear, Common Cause And Corrections
Consultation Procedure Behavioral Profiles Selling Tires
Consultation Key Information Daily Plan Alignment Tips & Tricks
Consultation Tips Orphan Owners
Product Selection Salespersons Daily Checklist COLLISION
Product Presentation Procedure Salesperson Delivery Checklist
Product Presentation Techniques Working The Service Drive Damage Analysis & Estimating
Product Walk Around Vehicle Condition Report Types of Vehicle Construction
1. Window Sticker Walking The Trade Types of Damage
2. Engine Compartment Closes For Every Day Objections: Collision Energy Management
3. Front of the Vehicle “Saw One In The Paper” Gathering Vehicle Information
4. Trunk of the Vehicle “Not Enough For My Trade” Labor Operation
5. Passenger Side Exterior “I Want To Think It Over” Automotive Part Types
6. Passenger Side Interior “Monthly Repairs” Taking Proper Photo’s
Product Demonstration Procedure “Gas Savings and Payment Justification” Procedures For Writing An Estimate
Trial Close “Asking For Cash Down” Supplemental Procedures
Product Demonstration Tips Respirator Fit Test and Maintenance
Write up Terminology MANAGEMENT
Completing a Buyers Order/Worksheet REMARKETING
Preparing For The Write-up Sales Management Development
Walking The Trade Characteristics of Successful Managers AutoTrader.com:
Evidence Manual Coaching For Peak Performance Presented by AutoTrader.com
Review With Management Key Characteristics Online Advertising in the 21st Century
Write-up Responsibilities Making Sales Meetings Work Creating An Internet Savvy Culture
Presenting The Numbers Managing The Sales Team at Your Dealership
Listening to the Customers Response Common Mistakes Managers Make Online Merchandising Best Practices
Processing Objections 2 Part Series Merchandising Certified Programs
Negotiating Guidelines Why Salespeople Fail 2 Part Series Making Video Part of Your Online Presents
WITSTU Certified Pre-Owned Messaging &
Saw One In The Paper Price Justification Used Vehicle Management Merchandising
Negotiating Role-Play Maximizing Profit in the Used Car Department The Truth About E-Mail Leads
I Want to Think it Over Close 2 Part Series Effectively Advertising New Vehicles Online
Not Enough For My Trade Justification Mastering Inventory Turn
I’ve Got Your Deal Beat Justification Inventory Turn & Profitability 2 Part Series OVE.com: Presented by OVE.com
You’ll Have to do Better Than That Justification Merchandising & Marketing Shift Happens
Proper Management Referral (T/O) Recruiting & Hiring The Best Online Remarketing Basics
Introduction to F&I Negotiating For Gross 4 Part Series Applying InLane Best Practices
The Delivery Managing The Deal 5 Part Series Little Know Online Wholesale Tips
Owner Follow-up Conversion Optimization
Selling Used Vehicles: Search Engine Optimization Manheim: Presented by Manheim
Selling New vs Used Search Engine Marketing Vehicle Remarking 101
Keys to Selling Used Selling Vehicles at Wholesale Auction
Product Presentation For Used Vehicles F & I: Presented by American Financial Wholesale Vehicle Buying
Used Vehicle Presentation & Automotive Services
Used Vehicle Demo & Trial Close The 3 C’s of Financing Legal: Presented by Schulten Ward
Negotiating For Gross 4 Part Series Identifying The True Objection & Turner
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Today’s Market Service Contract Cost Too Much 8300 Form IRS Cash Reporting Rule
Buying Motives Disability Coverage Objection Red Flags Rule
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Activating Events Red Flags Rule Interviewing Prospective Employees
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Return On Effort
Salespersons Job Description
On The Move 2010
FRAUD IN THE
A Three Part Series – Part I I I –
n parts I and II of the series, we discussed So where do you start? This final part will address ways to identify
where you have the greatest risk in your dealership by ranking the fol-
what a typical fraud perpetrator profile lowing three statements in the order of which you would be most likely
to say (1=most likely, 2=second most likely, 3=third most likely):
included and gave some strong fraud
Statement Ranking (choose each number only once)
indicators in specific departments. An em- “Everyone makes mistakes.” 1 2 3
“My controller and auditors look at that.” 1 2 3
ployee usually steals when there is an oppor- “I trust my people.” 1 2 3
tunity to steal and usually is someone that After you have ranked the statements, look for your corresponding risk
areas below. Included in each section are some examples of some poli-
has been with company for at least five years cies and procedures to implement, or in some cases, enforce, in your
dealership. The statement you ranked number one (most likely) is typi-
and is in a position of trust. Many times ad- cally the highest risk area for you, but all may be applicable.
ditional duties and responsibilities were giv- TONE AT THE TOP
“Everyone makes mistakes.”
en to that person because of that trust that As you may have been able to discern, controlling fraud begins “at
home.” Take a hard look at the individuals responsible for running your
had built up over the years. Pressures such as dealership (including yourself ) with the understanding that everyone
else in the dealership is looking at that those people too. Would you be
money or addictions can drive someone to comfortable if anyone in the dealership did the same things you did,
even if you are the owner? You may have heard the saying, “As long as
perpetrate a fraud especially when it is easy he makes me more than he steals, I’m OK with it” or something similar.
This practice will only end one way: with fraud in your dealership.
to justify the action. It is clear that even the
Defining what the dealership determines to be unacceptable is the
most trusted employees will steal. beginning of proper governance. Without specific, documented, and
enforced guidelines for employees to work and live by, lines will be
tested, especially the gray areas.
Here are some great examples of policies to implement to help with
your Tone at the Top:
By Brian P. Bentz, CPA, CIA
1. Code of Conduct – These are the rules for conducting business for
Brian Bentz is the lead member for the Dealer
Services Risk Services Group and is located in individuals and the dealership as a whole and may include the values
our Dallas, Texas office. Since joining Dixon and expected behaviors the dealership follows. Without these guide-
Hughes over twenty years ago, Brian has fo- lines, it is much more difficult to enforce noncompliance and build a
cused exclusively on dealerships in providing strong anti-fraud culture.
them industry thought leadership consulting 2. No Tolerance – Successful dealerships simply do not allow em-
services related to internal audit, regulatory and ployees to commit fraud and still stay employed, even if it is the top
compliance services, due diligence and buy / salesperson or an owner. Making one exception will forever make your
sells and agreed upon procedures. “Tone” tarnished and essentially continue to invite fraud.
Hitting The Brakes
3. Good Hiring Practices – Consistently using background, drug, and and effort and hope you don’t get caught?
reference checks let all of your employees know that you are only going 3. Results and Reality – Honestly assess your risks and where there may
to hire the best people. Performing these checks every time is the key to be risks you don’t know about or even understand. Is your CFO strong
success. Good employees also can help recruit other good employees enough to notice financial fraud committed by one of your controllers?
so start with your existing staff and determine if you would hire them Are your personnel actually doing what they say they are (reviewing,
today. approving, etc.)?
RISK ASSESSMENT INSPECT AND MONITOR
“My controller and auditors look at that.” “I trust my people.”
Some frauds are masterful deceits that require years of planning. Most There is no doubt about it: some people will not steal even if you give
frauds include routine transactions that have break-downs in estab- them a chance. It is also true that some will try to steal even if there is no
lished controls and procedures. In other words, most frauds happen way to do it. Opportunity is the only thing you can control (that is, if you
because: know about it) and if you choose to just “trust” that employees will
do the right thing, it doesn’t matter if there is opportunity or not.
• Someone stopped doing what was supposed to be done
• Someone started doing something that someone else should do You put a lot of trust in employees today. You trust that they protect the
assets of the company, take care of customers, clock in on time, and in
Dealerships, unlike certain manufacturers, do not have what seems like general, do the thousands of other things they are supposed to do each
limitless funding to be able to have each single transaction type per- day. This should not be a problem as long as all of your employees know
formed by a single employee. As a result, multiple transactions are per- what they are supposed to do, are properly trained and educated, and
formed by individuals every day. Fraud increases tremendously when are motivated to perform at their highest level for the company.
opportunity arises because an employee is performing duties that
would allow for fraud to go undetected. By separating duties properly, The only sure way to make sure you can trust your employees is by
fraud risk can be reduced assuming those functions are actually be- checking them. “Expect what you inspect”, “check the checkers” are all
ing performed as developed. Just because someone is supposed to do very true. Over time, for many reasons, employees will stop doing what
something does not mean they are actually doing it. they are supposed to do unless they are reminded.
There may be times when certain duties cannot be fully segregated due Here are some examples of both inspect and monitor procedures you
to lack of personnel, expertise or experience levels, logistics or other can perform for accounts payable and the related disbursements:
circumstances. In these situations many dealerships assign these duties
to the most trusted employee. Of course, these are the same employees Inspect Monitor
that fit the typical profile for committing fraud! Get back-up for A/P check Sign A/P checks with clerk
Check invoices for signatures Ask managers what they approved
To help determine where you may have “holes” in your dealership that
can lead to fraud, you need to perform an assessment of where your Compare invoices to G/L posting Observe clerk posting invoices
risks may be. Use these steps as a starting point for your Risk Assess-
ment: Simple inspection tests for any process include comparing the support-
ing documentation to the actual posting. Monitoring can include in-
1. “Role” Call – Interview and document what each of your employees quiry or observation of the process performer.
do for the dealership, both as a normal job duty and as a back-up (when
someone is on vacation, sick, etc.) Begin first with employees that can Trust your employees enough to check them.
record transactions, handle money, or purchase items for the dealer-
ship. For more information on how to detect fraud in your dealership, contact
2. Risk Ranking – Determine the greatest risk to your organization. Are Brian Bentz, CPA, CIA directly at (817) 276-4106 or via email at bbentz@
you more concerned with the loss of income or reputation? Is the loss dixon-hughes.com.
of cash more important than the loss of assets? Is it more important for
your dealership to comply with new regulations or save the expense
On The Move 2010
By Bob Elbrader
Bob Elbrader is Director of
Operations for Intravision, an
F&I Solutions company
He can be reached at:
f you have ever considered recording F&I transactions and
decided not to make this move, you may want to recon-
sider. In recent years, when dealers have thought about provided The Suburban Collection, Allgeier ad-
mits that there was some nervousness among
recording F&I transactions, many have believed this type of the F&I staff when video solutions were first
technology was used solely for compliance purposes and implemented. “We initially focused on positive
presentation reviews, to demonstrate that we
many dealers believed recording F&I transactions could pose weren’t out ‘to catch’ people doing something
as a potential liability threat to their organization. wrong and that this is a valuable training tool
for our department. After a few weeks, we
New video based offerings have changed the into a 15% improvement in product penetra- found that managers were asking for more
way dealers feel about this type of technol- tions across the board.” According to Barrows, reviews, more feedback so they could make
ogy by incorporating new state of the art DMS the dealerships have also seen an increase in better and more profitable customer presenta-
integrated technology. Instead of focusing on Income per Retail. “We’ve increased our dollar tions.”
compliance, these new video offerings focus per copy by $300,” he says.
on helping dealers increase F&I performance Allgeier comments that video solutions have
and production through training. Increased THE SUBURBAN COLLECTION eliminated any uncertainty about what hap-
performance translates into increased produc- Another group having success with Video tools pens during the presentations, and has even
tion; increased production leads to higher is The Suburban Collection, who operates 26 helped the dealerships from a compliance
income per retail for dealerships. dealerships representing 45 franchises across standpoint. “I’ve been in the business for 20
Michigan and South Florida. The Suburban years, and this is a revolutionary tool that puts
VIDEO TOOLS IN ACTION Collection has also witnessed marked im- the facts right on the table.” he says. “Video
One dealer group using video solutions is the provement in their F&I profits since installing has driven production and compliance and
Greg Orr Automotive Group. Pat Barrows, video offerings. has yielded an impressive ROI.”
Director of Finance for Greg Orr Automotive,
who operates 17 dealerships throughout Texas Gary Allgeier, Director of Finance for the group For these two groups, and many more that
and Louisiana, says, “Using a video system in says, “We immediately saw a tremendous utilize video offerings, the increased F&I
F&I is a tremendous training offering – the impact on our sales training. We are in a much revenue has helped the bottom line. In today’s
best you can get. To be able to see a custom- better position to train our F&I Mangers with competitive landscape, dealers across the
er’s reaction to what our managers are saying, video solutions. We review the presentation country are always looking for the proverbial
then train our staff to be better prepared in the videos and then specifically target training ‘goose that lays the golden egg’. F&I is one of
future, is a really valuable tool.” based upon what we see. Since we installed those departments that can have a dramatic
video solutions, our production has dramati- impact on the bottom line. Because of the
Barrows notes that the video based training cally improved.” expense structure in F&I, a high percentage of
translates into a more productive, profitable these additional ‘found’ dollar’s fall directly to
F&I staff. “We review the videos with our In the stores that have Video solutions in- the bottom line.
employees, helping them understand what stalled, Allgeier notes that The Suburban Col-
they’re not doing, and how to get better. For lection has seen a $200 increase in Income per By incorporating video solutions training
us, it’s not a matter of catching someone doing Retail. “Individual producer’s numbers have into your operating plan, dealers now have
something wrong—it’s about helping our staff increased as much as $300 per vehicle” he the ability train F&I Managers using real life
get better at their jobs.” Thanks to the impact says. Product penetrations are also on the rise examples instead of textbook theory. By
of these offerings on training, the Orr Auto- according to Allgeier, by approximately 25% in incorporating this new technology into your
motive dealerships have seen improvements the stores where video solutions are installed. dealership, maybe, just maybe you will finally
in profitability since its implementation. “It’s find that golden goose you have always been
helping our staff get better, which has turned With the overall benefits video solutions have looking for.
The MAADA will be publishing the 2011 Atlanta International Auto 12 months, with the majority stating that the show helped them make
Show Guide, and we are offering the most reasonable rates ever to our buying decisions.
The Atlanta International Auto Show Guide will publish features on new
There’s no question that your insertion in the guide will reach a very introductions, concept vehicles, auto industry trends and special show
strong market of affluent consumers and prospective car buyers. Sur- events and attractions. It will also include a large floor plan, plus a list-
veys show that over 60% of attendees plan to buy new vehicles within ing of all dealer members of the MAADA.
For more information, please call 770-916-1741, or contact us by email at email@example.com.
On The Move 2010
Here are some highlights (and lowlights) of early automobile
By Tom Tortorici
Tom Tortorici develops strategic marketing
communications for today’s world. For a free
copy of “Selling to Stingy Buyers in a Stinky
Economy” email him at firstname.lastname@example.org.
DRIVE BACK WHERE YOU CAME FROM. a-vis’ or face-to-face arrangement. Finally realizing that the driver’s
ability to see the road trumped conversational courtesy, passengers
A horse-drawn world in 1900 surely must have welcomed the zippy soon got moved back to the back, but at least now they could see
new age of the automobile, right? Apparently not everyone was where they were going instead of where they’d been.
quite so enthusiastic. Well-to-do families in the early years would set
out on weekend car trips into the countryside, only to find rocks and TRAVELING TO ExCITING NEW COUNTIES.
bricks hurled at them by the locals! Cars in those days were loud, oily-
smelling beasts that kicked up clouds of dust from the dry dirt roads. Once back-country Americans got past their early, somewhat violent
Apparently these intrusions of progress jarred the traditional sen- resentment, and as they noticed car prices dropping, they started to
sibilities of rural folk. Worst of all, the odd, jerking machines scared pick up on the possibilities. Now, with one of these newfangled con-
the horses, who would sometimes careen off the road, carrying their traptions, carrying their crops to market every week took half an hour
carts and riders on an unexpectedly wild ride. instead of half a day. They could visit relatives in other towns who
they otherwise might never see again. And, significantly, they had
LOOK AT ME WHILE YOU’RE DRIVING. access for the first time to big-town medical care, education, libraries,
media, sports and culture, as well as retailers hawking the latest con-
The front seat/back seat arrangement seems to make perfect sense sumer conveniences. In this way, the automobile probably had more
for cars, but in the early days, it appears to have taken a while to overall impact on the lives of farm people than anyone else. Plus
arrive at that configuration. The French 1890 Panhard-Levassor had a Henry Ford made sure that his Model T’s engine could be disengaged
back seat all right, but it faced backward. In a presumable response to from the drive mechanism and used to run farm machinery. Not a big
the difficulties of group conversation, cars like the 1896 Peugeot had selling point today, but it certainly was at the time.
its back passenger seat placed in front of the driver’s seat, in a ‘vis-
history that may surprise you.
BUT WHERE’S THE ENGINE? in styling, car bodies stopped evolving. Sedans of the mid-fifties have
the same essential structure and proportions as sedans today. 23
In the earliest cars, the motor was generally mounted under and be-
hind the driver’s seat, near the real wheels that it powered. During the WOMEN’S RIGHT OF WAY.
first decade of the 1900s, some car makers experimented with engines
in the front, under a metal hood, a stylish modification that soon won In the earliest days of the twentieth century, motoring was a man’s
popularity. Problem was, other manufacturers still hadn’t figured out world. Throughout the late teens and the twenties, though, the lady
how to drive the rear wheels from a front-mounted engine. For exam- of the house increasingly found that ‘a woman’s place’ was behind a
ple, the 1905 Yale Model E still kept its engine hidden low in the back, steering wheel. Three developments helped move this trend along.
but to attract fashion-conscious buyers, it featured a fake hood in the First, the option of an electric ignition freed the fairer sex from hav-
front that held...nothing (except for maybe the water and oil tanks). ing to crank up the car from the handle in the front, a difficult and
Eventually, all automobile companies employed the engine-forward often dangerous procedure even for men. Second, cars became more
configuration, which allowed the entire car to sit lower to the ground. reliable, which made it less likely for a young wife to be stranded on
After all, unlike the carriages they had evolved from, cars no longer the road. And third, hardtop models began to outsell convertibles,
had to be built to allow the driver to see over the tops of horses. protecting ladies and their children from questionable neighborhoods
and unpredictable weather. The sense of freedom and empowerment
TWO DOLLARS REGULAR, PLEASE. that females gained by their new mobility surely was a factor in the
growing women’s rights movement at the time.
The first gasoline providers for early cars were existing establishments
like hardware stores. However since the pumps were simply placed AND WE HAVE A WINNER.
in front of the store at the curb, cars that were gassing up tended to
block the road. In busy areas, that lead to continual traffic back-ups, At the turn of the twentieth century, electric cars, steam-driven cars,
driver rage, and more than a few accidents. When pumps were finally and gasoline-powered cars all competed for market share, and it was
set back as part of proper ‘service stations,’ the accompanying struc- far from certain at that point which would prevail. Electric cars, like
tures initially tended to be cheap wood or corrugated metal sheds, even today’s models, were limited in range, and apparently that was a
creating dilapidated eyesores all along the road. This soon became deal-killer for new owners who might want to jump in and drive to the
a serious social, political and aesthetic issue. Then things swung the horizon. Steam cars were powerful enough to cover longer distances,
other way, with stations trying to outdo each other to gain architec- but waiting up to a half hour to get enough steam up was ultimately
tural respectability. One gasoline company built their service stations too tiresome for on-the-go drivers. Early internal combustion engines
to look like quaint English cottages, and another offered buildings that may have made for a smoky, noisy, vibrating ride, but ultimately they
looked like Greek monuments, complete with classical columns. won the newly-mobile hearts of car buyers by default. The fact that
they start right up and ride forever made gasoline-fueled cars the
NOW I KNOW WHY THEY CALL IT A TRUNK. driver’s exclusive choice for the next hundred years.
Park a modern car next to a hundred-year-old antique, and it’s hard to OBSTACLES TO PROGRESS.
see how one evolved into the other. But if you look at the process step
by step, you’ll see how exterior body features were gradually absorbed Beginning in the 1880s, France and Germany made great, rapid strides
into a unified whole. Before about 1910, the seats were perched on in developing and popularizing the self-propelled vehicle. England?
top of the body; after that point, they were eventually lowered and Not so much. Steam carriages were actually quite successful as public
encased inside the body. Sometime during the twenties, the hood buses in the later part of the nineteenth century. But their competitors,
area was widened to match the passenger compartment, resulting in the railroad and horse-carriage industries, had better lobbyists; Parlia-
smooth front-to-back lines then known as the ‘torpedo’ look. In the ment was persuaded to levy a tax on the steamers so burdensome
early thirties, many cars had an ordinary traveling trunk mounted on it put them out of business. A few years later, British officials were
the back for cargo; by the end of the decade, the ‘trunk’ was thorough- so fearful of the response to personal gas-driven vehicles on public
ly integrated in to the body itself. Finally, fenders gradually merged streets, they ruled that every automobile must be preceded by a man
with the hood between the ’30s and the ’50s, at which point an inter- on foot, waving a red flag to warn villagers of the 4-wheeled monster
esting thing happened. Other than further streamlining and variations coming down the road.
On The Move 2010
By Scott Dreisbach,
Vice President, Valuinsight, Inc.
561 404 8540
aving been directly involved in the retail automobile
business for nearly 40 years, I have come across a myr-
iad of “better mousetraps” and so called “magic pills.” If
I had a dollar for every time a vendor told me that “all you have
to do is sell one more car to pay for it,” well, let’s just say that we
have all heard that before. The truth is, that as it relates to the
new and used vehicle sales game, it’s all about retail turnover.
It always has been and it always will be.
The question then becomes, how do we increase vehicle retail turn- know that the “quicker turners” gross more. That goes for both the
over? We can spend more money advertising. We can pay extra com- new vehicle department as well as the used. This is no secret.
missions. We can price our inventory on the internet to be the most
attractive in terms of a price search. We can lower our grosses. We can I recently completed an exhaustive study of all of the ramifications
try to reach out to a broader base of prospects. We can also wish, hope inventory decisions can, and do, have to the dealership’s bottom line.
and pray. These are not the solutions I advocate. Many things were clearly revealed and confirmed by the data as a
result of the study and the following list is not intended to be a revela-
Have you ever wondered how one of your competitors always seems tion, nor is it, all inclusive.
to be able to deliver more vehicles than you? Or how someone in your
“20 group” was continuously selling 1 to 1 (or more) used to new? Or • Quicker turning vehicles gross more per unit on both the front
how they grossed more per unit than you? Or how they were able to end and back end
experience little or no “wholesale pain?” It’s all about the turn. We all • There is a direct correlation between age and gross
• Gross almost always goes up as availability goes down and the It will soon become evident that there are some sales categories and
opposite is also true model years that just do not make sense to participate in with an
• Sales compensation in real dollars and as a % of gross, goes up in inventory investment. You will also find that by maintaining 37 days
direct proportion to vehicle age worth of units and dollars, there will be categories and model years
• Many Specific Years, Makes and Models, sell faster than others that sales grow rapidly in. And finally, you will also be able to find the
• More inventory does not mean more deliveries point of diminishing returns in each sales category where more, does
• Salespeople tend to lead prospects to the “freshest” inventory not necessarily mean better. (the point of diminishing returns)
• Dealers advertising dollars are largely spent on the slowest
moving inventory I have developed a simple Excel spreadsheet “stocking guide” tool that
• Seasonality, special events and incentive programs are here to stay you can use to accomplish this (no charge or obligation) and I will be
• Forecasting sales is very unpredictable and is usually optimistic happy to send it to you upon request. Simply send me an e mail asking
and inaccurate for the used vehicle stocking guide. The “feedback” that this type of
simplified inventory management system will provide you will become
Back to the original question then, How do we in- invaluable.
crease retail vehicle turnover?
Part of the reason Wal-Mart has become the retailing Giant that it is, is
One of the best (and this one is free) methods to increase retail vehicle due to strict adherence to the basic principles of inventory manage-
turnover is by installing and following a stocking ment. Monitor demand, measure movement.
guide. One of the many functions of this stocking “Part of the reason Make decisions. You will rarely find any of their
guide is simply measuring the cost of sales of shelves empty or overstocked. If it is a good
the units we are delivering versus the remaining Wal-Mart has become the producing, quick turner, they gradually increase
inventory by sales segment and individual model retailing Giant that it is, is their stock until they find that point of diminish-
years within each segment. I like to use the fol- ing return. (where more does not equal better) If
due to strict adherence
lowing eleven sales categories and the 8 most they have tried it and it doesn’t work, they forget
recent model years within each category. The to the basic principles of it and move on and try something else.
categories are: Small Car, Sporty Car, Mid Size inventory management.
Car, Full Size Car, Small Truck, Small Sport Utility,
Large Truck, Large Sport Utility, Mini van and Van.
If you will
Monitor demand, measure system, (ortake the time to implement this type of
any of the available vehicle inventory
When you clearly know how many and what the movement. Make deci- management systems, mine included) you will in-
cost of sales of the vehicles are that are “burning sions. You will rarely find crease your total Used Vehicle Department’s gross
gas” is and then compare that to your “ground
stock,” you will have an exact idea of whether you
than you might
any of their shelves empty profit morewhen customers imagine. The bottom
line is that leave our individual
are long or short in that model year and seg- or overstocked.” Used Vehicle car lots without purchasing, it is
ment in either units, ready money or both. Your almost always because they did not see what they
sales pace earns you a stocking guide number in both unit count and truly were looking for. (Sometimes they will not even get out of their
average cost of sales. It then is simply looking at your actual inventory vehicle and just do a “drive by.”) Remember, you cannot be all things to
versus your guide. The action required to “get into balance” is clearly all people and it is impossible to stock everything. When your Used Car
apparent. lot has more on the ground, of what your customers are looking for,
what do you think will happen?
As an example, if your number one gross revenue producing sales seg-
ment is mid size cars and your best performing model year and quick- Today’s technology gives us all the opportunity to make more intel-
est turner is 2006 within that segment and the average cost of sales is ligent decisions, more accurately and faster than ever before. Literally,
$8,200, then it stands to reason that your inventory of vehicles in that with a few clicks of your mouse in the right program, you can get all of
segment and model year needs to be as close to $8,200 (lot ready) per the information you would need to make a better inventory decision.
unit as possible. The sales pace and number of units sold in that seg- While it is impossible to predict economic swings, natural disasters, ter-
ment determines your “stocking guide.” The closer your inventory is rorist activities or wild fuel price fluctuations, you can phase in a “more
to the cost of sales of the vehicles that you are selling, the more active active” inventory. Ask yourself this question. Am I confident that my
that inventory becomes. Conversely, the further away from the $8,200 managers are using all of the tools and data available to them to make
target your inventory is, the less active it becomes. Another use of the the very best possible inventory decisions?
stocking guide is when it come to appraisal time. If, for example, you
happen to be offered a trade that is a 2006 mid size car but is worth It has been said by many different professionals that the first step to
around $14,000, get a buy figure on the unit that is good for at least 10 recovery is to admit you have a problem. This step is often the most
days, trade for the vehicle, try it out on the lot for those 10 days and if it difficult one to take as it involves an admission to oneself that some-
isn’t gone in those 10 days, cash it. This will allow you the opportunity how, someway, we have failed. As car people, we always want to do
to try other vehicles without the risk of wholesale pain. Ultimately, better and being of the optimistic breed, we all believe we will do
you will find the ideal inventory in both the number of units you need, better, even when repeated results keep staring us directly in the face,
as well as the cost, for each sales category and model year. I strongly month after month. Is your inventory the problem or the solution?
suggest aiming for a target of a 37 days supply of units and a 37 days Do your managers really use an inventory management system? If not,
supply of dollars in each sales category and model year. (The unit days why not?
and dollar days calculations were covered in a prior article and I will be
happy to send it to you upon request.).
On The Move 2010
FORD START WINS AUTOWEEK’S BEST CONCEPT
The stunning red Ford Start pulled ahead of 65 concept vehicles to be named Best Concept
by the AutoWeek editorial staff at the Beijing auto show this year.
Small, green, smart and fun, the Ford Start won admirers for its decidedly playful take on
kinetic design. More than a design exploration into the feasibility of a future small car, it
previews the smallest engine yet in the growing Ford EcoBoost engine family. Ford has
confirmed that the 1.0-litre turbocharged I3 EcoBoost engine powering the Start is going into
production, destined for use in future Ford small cars, where it is expected to deliver the same
power as a larger petrol I4.
Describing the Ford Start as “the kind of concept we can wholeheartedly embrace”, AutoWeek
journalists gave the nifty package a ready thumbs up. (Source: Ford News)
Muscle-car Meet-up: Camaro5Fest 2010
How popular is the all-new 2010 Chevrolet Camaro? More than 500 have all the fun, the Camaro’s chief engineer, Al Oppenheiser, traveled
of them—including some special models brought along by Chevy’s to the event, as did team members including Peter Kosak, the car’s ve-
Team Camaro—descended on Valdosta, Ga., recently for Camaro5Fest hicle line director; John Fitzpatrick, Camaro’s marketing manager; and
2010. Attracting more than 1,000 Camaro-craving enthusiasts, the Cheryl Pilcher, its product manager. And you can be sure they didn’t fly
celebration was believed to be the largest yet for the fifth generation to the event; well, you can be sure they didn’t take an airplane anyway.
of Chevy’s hallmark muscle car.
Said Fitzpatrick: “It was an incredible opportunity to see the passion
Sponsored by fan site Camaro5.com, the event was a clear indication and enthusiasm owners have for the new Camaro. This was such an
of how passionate people are about the new car, a trait obviously exciting event that I wouldn’t be surprised to see more than 1,000 cars
shared by the men and women at GM. Not about to let customers at next year’s Camaro5Fest.” (Source: Chevrolet in the News)
Nissan Vietnam Co. Ltd. (NVL) recently an- represents the company’s continuing priority
nounced the launch of the Nissan Grand focus on business expansion into emerging
Livina MPV, which will lead the Nissan brand markets,” said Toshiyuki Shiga, chief operat-
expansion in Vietnam. The first locally assem- ing officer of Nissan Motor Co., Ltd. (NML),
bled Nissan vehicle offered in the country, who attended the launch ceremony today
the stylish MPV that seats seven will be sold at Thao Dien Village in Ho Chi Minh City.
at one newly opened Nissan flagship dealer “Vietnam is one of the key global automotive
in Ho Chi Minh City and one in Hanoi. markets, and we are glad to mark the impor-
Nissan Launches Grand tant milestone in the market today.” (Source:
Livina in Vietnam “The opening of two flagship dealers in
Vietnam with a locally assembled product
THE AUDI A9 CONCEPT THAT CAN All-New 2011 Scion
CHANGE COLORS AND REPAIR ITSELF! tC Receives
Five Axis Makeover
This is Audi A9 concept from the
reputed Spanish designer Daniel Scion recently unveiled a Five Axis
Garcia who has Ducati 6098 R customized edition of the all-new
concept and may other to his 2011 Scion tC. The special Five The interior complements the
credit. The awesome A9 concept Axis Scion demonstrates one of the exterior performance and look with
will be lighter than Audi’s current many ways in which the all-new tC unique Five Axis trim and color ap-
flagship model, A8. Inspiration for the styling of A9 comes from can be customized with internal and pointments and material specifi-
the stunning architectural style of Santiago Calatrava’s buildings aftermarket accessories. cations by Zing Design. Comfort
in “La Ciudad de las Artes y de las Ciencias in Valencia. Daniel’s is provided with custom leather-
A9 concept is a low emission hybrid vehicle for the future. A9 The Five Axis tC carries a high– trimmed seats with Ultrasuede®
concept features a single-piece windscreen and its roof is formed performance, racing theme with the EcoDesign™ inserts. Additional
from nanotechnology material (which is yet to be discovered) installation of a four-inch wide-body interior enhancements include Chil-
that has a unique automatic-system that repairs damage and can conversion and a unique House of ewich floor mats, and upholstery by
also be adjusted for colors and opacity. Also, the vehicle flaunts Color custom formulated exterior Little John’s Interior Concepts.
the unique ‘electronic painting’ system that allows the owner paint that is appropriately named,
to change the color with the touch of a button. The concept is Bloodshot. Performance was Founded in 1995 by Troy Sumitomo,
proposed to be powered by an advanced hybrid setup which uses enhanced with the installation of Five Axis is most noted for their con-
an internal combustion engine working in conjunction with four a Tein adjustable coil-over suspen- cept cars and high-end showcars
in-wheel electric motors. (Source: Audi News) sion, a TRD custom Big Brake kit, and often seen at major international
20-inch Yokahama Advan Sport tires auto shows and trade shows like
mounted onto five AD R5:F wheels. SEMA. (Source: Pressroom Toyota)
Operation “Diaper Drop-off” Completed in Rural Minnesota
Ebro, Minn. – When Chevrolet heard the amazing ing her newborn, who all require child seats, Safe
tale of Amanda McBride, the mother who gave birth Kids technicians spent an hour with the family,
while driving her 2005 Cobalt to the hospital, the showing them the proper way to install new car
company made Amanda an offer any mother would seats (donated by Graco) in the Cobalt.
love – a year’s supply of free diapers and other baby
supplies. After all three kids were safely buckled in; Chevro-
let presented the family with a host of other gifts,
Chevrolet delivered on its promise, arriving in rural including a year’s supply of diapers.
Minnesota in a Chevrolet Tahoe packed with baby
supplies. “I never thought a big company like Chevrolet
would ever pay attention to small town folks like us,”
Joining Chevrolet for operation “Diaper Drop-off” Joseph Phillips, the baby’s father. “Thank you so
was Safe Kids USA, Chevrolet’s partner in child much!” (Source: Chevrolet in the News)
safety. Because Amanda has three children, includ-
On The Move 2010
Kia Soul’s “Hamster”
commercial wins the “Automotive
TV Ad of the Year” award!
The awesome Kia Soul TV commercial was recently named “Automo- The creative commercial creator, David&Goliath, depicts the Soul as
tive TV Ad of the Year” at the Nielsen Automotive Advertising Awards. a lounge on wheels as the hamsters bob their head to four different
music tracks coming from the Kia’s audio system with speaker lights
The cute and creative Kia Soul commercial shows a city that is in- pulsing to the beat of the music.
habited by hamsters in suburban streets who go about doing what
hamsters do best – mindlessly running on their exercise wheels but As viewers look closely, on the cool hamsters’ iPod are information on
never moving to another spot. the song tracks and artists. This was an intentional placement because
each track is downloadable from kiasoul.com website.
They are not getting anywhere. But their world suddenly changes as a
flashing red Kia Soul crossover pulls up to a stoplight. The windows roll The Nielsen Automotive Advertising Awards chooses the best adver-
down and inside are tree hamsters tapping their paws to cool music. tisements based on the votes of an online panel of TV viewers who
These cool hamsters running on the 2010 Kia Soul discovered “A New watch TV programs not as a clinical research but an actual natural TV
Way to Roll.” viewing experience. (Source: www.kia-world.net)
MOTORISTS KEEN ON ELECTRIC VEHICLES AFTER SMART FOR TWO TEST IN THE UK
A six-month trial involving four smart fortwo would be happy to use an electric vehicle as gional Development Agency One North East.
vehicles in the United Kingdom has been a regular car after sampling the smart fortwo,
deemed a major success, with many individu- with the model exceeding expectations in all Robert Evans, CEO at Cenex, said: “The Smart
als keen to use electric models in the future. performance areas. Move trial has done a great deal to change
perceptions of electric vehicles among the
The iconic two-seater vehicles were test Furthermore, charging the vehicle was fleet managers and drivers who took part.
driven by 264 different people after being deemed to be safe, easy and reliable.
given to ten vehicle fleets and being present The smart fortwo electric drive can reach a
at three public events. The vehicles were handed out by Cenex, the limited top speed of 62 miles per hour.
UK’s Centre of Excellence for low carbon and (Source: Mercedes-Benz News UK)
In total, 72 per cent of drivers said that they fuel cell technologies, in conjunction with Re-
Lexus Invites Consumers to Co-star in New ‘Dark Ride’
Interactive Film to Launch New CT 200h Hybrid
“Get in, buckle up and start talking.” Lexus the driver and the CT through a series of ad-
customers will be calling the shots in a high- ventures, customers will be exposed to ‘The
definition interactive film entitled “Dark Ride.” Darker Side of Green,’ which is completely
The film features Lexus’ newest hybrid, the CT different than the way hybrids are usually
200h premium compact car, piloted by actor portrayed.”
Norman Reedus (Boondock Saints franchise).
Reedus is behind the wheel in this 12:30 ac- The film is available online at www.lexusdark-
tion film, but he is following the directions of ride.com along with the trailer for the film,
the person riding shotgun…the consumer. which will appear in select movie theaters
across the country. Visitors to the www.lexus-
“With ‘Dark Ride’ we are creating a unique vir- darkride.com site will get to insert themselves Consumers will use an array of interactive
tual test drive opportunity so consumers can into the film, sitting beside “Tony” (Reedus), features in the film—allowing them to insert
experience this hybrid, that is like no other, and navigating while he drives the CT 200h their own likeness (via a Webcam or profile
months before it is available at dealerships in from the Nevada desert to a Los Angeles pic), record their own dialogue lines, control
early 2011,” said Dave Nordstrom, Lexus vice safehouse and protects it from a variety of the camera movement and POV, and make
president of marketing. “In it, consumers play enemies who wish to get their hands on the decisions that alter the path of the film so
a co-starring role as the fun-to-drive Lexus new prototype. new situations arise each time.
CT 200h is put through its paces. By guiding (Source: Toyota Pressroom)
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On The Move 2010
n today’s unpredictable economy, everybody’s looking to save
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On The Move 2010
sCHeDULe oF CLasses:
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JULY 8 SALES HANDLING INCOMING SALES CALLS
JULY 8 SALES PERSONAL BUSINESS DEVELOPMENT
JULY 9 SALES HANDLING INCOMING SALES CALLS
JULY 9 SALES PERSONAL BUSINESS DEVELOPMENT
JULY 12-16 SALES PROFESSIONAL SELLING SKILLS
JULY 12-23 SERVICE PROFESSIONAL LUBE/SAFETY INSPECTION & HEAT & A/C TECHNICIAN
AUGUST 10 SALES PROFIT BUILDING PRESENTATIONS
AUGUST 11 BODY PROFESSIONAL DETAILING
AUGUST 12 SALES NEGOTIATING FOR GROSS
AUGUST 16-20 SALES PROFESSIONAL SELLING SKILLS
AUGUST 16-27 SERVICE PROFESSIONAL LUBE/SAFETY INSPECTION & HEAT & A/C TECHNICIAN
SEPTEMBER 9 SALES LEASING
SEPTEMBER 13-17 SALES PROFESSIONAL SELLING SKILLS
SEPTEMBER 14-15 SERVICE SERVICE ADVISOR TRAINING
SEPT. 20 – OCT. 1 SERVICE PROFESSIONAL LUBE/SAFETY INSPECTION & BRAKES TECHNICIAN
SEPTEMBER 20 SALES USED VEHICLE MANAGEMENT
SEPTEMBER 21 SALES SELLING USED VEHICLES
All Atlanta classes will take place at 440 Interstate North Parkway. Classes are subject to change.
For registration or more information, please call 770-916-1741.
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