Next Day Traffic

You know I’m big on lists, but for 2009 there is just one New Year Resolution on my list – “keep pushing the wall!” Not an original resolution, but one well-founded in my life.  

For years, my Uncle, Bob Inman, was an anchorman at WBTV Channel 3 in Charlotte, N.C. He closed out many shows with a personal editorial titled, “Closing Note.”My favorite was one he titled, “Try, Try, Again!” It was written in honor of my grandfather, Paul Strong.

Papa Strong was one of the kindest, most generous, and hardest working people you could ever know. So when he had his first stroke, and a very serious one, many thought the odds were against him. But Papa Strong listened to his own drum and kept on surprising people for the next six years.

To quote a passage from Uncle Bob’s video essay:  

“If Papa Strong taught me anything, it’s that we ought to occasionally try to do something that’s just downright impossible. Sometimes, we’ll find that it wasn’t impossible after all… that by sheer will and effort, we’ll defy all the odds and make a miracle. Even if we don’t, though, there’s something to be said for the effort. It’s like pushing with all your might against a brick wall. You may never move it an inch, but you’ll be stronger for having tried. And pushing something else may seem like a piece of cake by comparison.”

2009 is going to be a challenge, but certainly not the first in our lives; to a person, we got where we are by pressing forward. Uncle Bob closed his commentary by saying, “Papa Strong has been pushing against a brick wall for six years now since the stroke. And by golly, he moved it.”

I heard a stock market report this morning on the news that interviewed traders on the floor of the NYSE that talked about how happy they were that today was New Years Eve.The interesting part about it was they were not talking about parties or watching the ball drop in Times Square; instead they were thrilled that 2008 was coming to an end. The reports were citing which stocks lost what this year, how many jobs were lost and which major companies either reported a loss or had just gone out of business. Basically, this was another doom and gloom news cast that we have all gotten so use to seeing and turning a deaf ear to in the third and fourth quarter of 2008. Of course I was pleased to see that the news report then turned to focus more time and attention to the Illinois Governor, Rod Blagojevich;  there is nothing like a good political scandal to turn the negative news media away from harping on the economy. 

At a hunting camp over this past weekend, someone who is outside our industry asked me, “just how bad is it for the dealers around the country?” This is a question that I have probably been asked at least a dozen times in as many of the last days and my reply has been very simple, “the car market is not great, but there still is a market.” The past 12 months have proven to be the most unpredictable that anyone has probably ever seen. 

So the question of the day on the last day of this year…  WHAT IS COMING IN 2009?  
 
From my perspective and the customers and dealers whom I have the pleasure of working with (and learning about more and more of their business with each day we work together) here is my prediction:

2009 is going to be like driving a race car into a 90 degree turn. 
You are cautious going into the turn and don’t try to take it 
with too much speed, but as you pass the apex or center of the turn, 
you roll your foot back on the throttle and gain as much speed 
as you think you can stand for the straight-away without losing control.  

A racing analogy may seem very simple, but I like to think and make illustrations in a very “big picture minded” way. (I learned that from Mike Strong). 
 
While 2009 is going to be a challenge, it is also a time that an underperforming dealership can take back a lot of market share that has been lost in the last 5 years. 2009 is a time that a “not so good” used car dealer can become a good one because we know New Car sales will still be off, while Used Car sales will probably remain less affected. 2009 is a time where a dealer who is already in control of their market, and runs a very solid operation, can truly “Take Over” a market.  
 
Make no mistake about it, 2009 is going to be tough as it gets out of the gate. Just remember, when the pie shrinks, you have to get a bigger piece of it to make do until it gets back to a larger size. This is the time to grow your business even further through your E-Commerce, and Used Cars. 2009 is a time when you have to spend more per car in advertising, but your share of voice will be exponentially greater.  
 
The purpose of this blog is to give an outlook for what I truly see coming:  I see this market getting back on track because of the simple principle of the law of supply and demand. There is too much pent up demand for the market to stay down forever. The ones who will dominate in this market are the ones who are cautious going in, but know when it’s the time to drop the hammer.  

HAPPY NEW YEAR TO EVERYONE!

The ‘Net’ Effect of Blogging and Social Networking

Click on the link below to access our newsletter!
Strong, LLC – January 2009 Newsletter

(text version of newsletter below)

The ‘Net’ Effect Of Blogging and Social Networking 
This month we discuss two new trends getting a lot of attention – blogging and social networking. And because the internet is the new ‘digital newspaper’ you can do both and increase attention for your dealership.

Blog Definition:
An abbreviated version of “web log,” term describing web sites maintained by an individual offering an ongoing chronicle of information, commentary, description of events, etc.  Bottom line: blogs promote a specific interest – your company!

Example: http://blog.strongthinking.com/blog/strong    

Social Network Definition:
A social structure made of nodes [which are generally individuals or organizations] tied by one or more specific bond, such as values, ideas, visions, etc.  Bottom line: social networking communicates your company’s interests and builds relationships with site members.

Example: www.insidetoyota.ning.com

Blog Writing
Readers are accustomed to daily updates on a variety of topics; here is a partial list for a dealership:

• Postings on new and used vehicles at the dealership, focus on the ‘specials’; price/incentive changes; used vehicles condition, value, KBB.com retail pricing; include vehicle video and photos
• Service Department specials, updates, recall notices
• F/I postings on added value of products offered
• Comments on timely topics, from the bailout to “best time to buy”, the advantage of good credit and employee news

Blog Building
Blogs are easy to get from your current website provider. If you are comfortable at adding or updating to your dealership website, then you would be able to run a blog.

Daily Blogging Is Key!
The more you update a blog site, the higher it will come up in a search engine!  Invite your staff to contribute their expertise since multiple daily entries are a good thing.  

SNI – Social Networking Investigation
Social Networking Investigation will uncover area organizations such as car clubs with whom your dealership is involved – Mustang Club, 4 Wheelers, eco groups, etc. 

There is a protocol with visiting these sites:  provide an up-to-date and full profile; post comments on several discussions to gain credibility, but do not blatantly advertise or promote. This and limited member amounts are a drawback, but ultimately worth the time. 

Create A Dealership Social Network!
To gain more exposure, build your own social network site focusing on:

• Life at the dealership
• Post a monthly e-newsletter
• Add video of product presentations and possibly even the humorous out-takes
• If your dealership collects vintage/special vehicles, tape a walk-around of each
• Simply post information about current employees and their community work 

The challenge is gaining members and keeping them involved with network, but ‘word of mouse’ will bring a surprising number to a great site.

Best Effect On the Net!
As with anything, it depends on the time and effort you or your GM, or qualified staff members dedicate to generating added exposure for the dealership.  Blogs and social networks are powerful tools for expanding dealership influence.  

Remember the first time you heard someone say, “I saw your TV ad?” Get ready for comments like “Love your blog!” and “I enjoyed reading about your people helping with the Food Drive!” It’s a new day, and time to stay ahead on the digital curve.

As we were designing this greeting card for our clients and vendors to commemorate 2008 and anticipate 2009, the message became clear – get ready for whatever! 

[Note:  the initial design and copy line were not changed in any way from presentation to production – that’s always a good sign.]

 
CHRISTMAS CARD FRONT

CHRISTMAS CARD INSIDE

CHRISTMAS CARD BACK

IT’S GOING TO TAKE A LOT OF THESE NEXT YEAR…

When is the last time you instituted “service lane selling”?

When is the last time you challenged your sales people to join a “civic organization”?

When is the last time you pulled all the lease customers out of your DMS and assigned a set of these customers for each sales associate to call and write a letter about their upcoming lease termination? 

Got you on the last one didn’t I!!!

So the market is shrinking, deal with it – go out and get a bigger piece of the pie. Sure you can “buy” a bigger piece of the pie, which is what an advertising or marketing person loves to hear. But even if you keep your budget the same, GET AGGRESSIVE WITHIN THE 4 WALLS OF YOUR DEALERSHIP. Practice the motto that a friend of mine in the mortgage business preaches… ABC – Always Be Closing! (Yes, from a friend still in the mortgage business that just finished his best year ever.)  
 
If you don’t take care of your customer someone else will. Carl Sewell inspired everyone with his motto and book “Customers for Life.” If you have reverted to sitting in your dealership, whether import or domestic and using a variation of terms to identify that ‘business sucks’ right now, look back to the very place you can increase your traffic, volume and gross for the least amount of money. GO AFTER YOUR OWNERS. BE AGGRESSIVE.  
 
If your finance director can’t pull your maturing leases and give them to you in less than 20 minutes, find another one. There are dealers right now who are “Selling Cars Like Candy Bars” and they are doing it because they have gotten back to the basics. They got back to the tried and true methods of writing things down on a legal pad, (not relying on emails and meeting reminders) they got back to walking the service lane and pulling people out of the clunkers that they were about to sink half a months pay into – just to keep running. They got back to contacting customers the way they did in the 90’s when leasing was so hot and the first massive wave of customers were being contacted about turning in their lease cars.  
 
Block out the negatives, focus on the positives and teach your people the way you did it back when you were the one doing it. The wording on your card reads either “president”, “general manager”, “managing partner”, “dealer”, “sales manager” – don’t forget you were the one who figured all this out and worked your way to the top. Get back to what got you there. Focus on selling and you will sell.

I was stuck in traffic behind a pickup truck from a local HVAC company. The reason I could tell was a green vinyl banner stuck on the tailgate. The cell phone picture through my windshield is a little blurry, but the sign read “Winter Furnace Sale” with copy beneath it telling of available rebates when switching from a gas furnace to a heat pump. 

When I got back to the office I called the company and asked if they had gotten any response – the girl answering the phone said, “oh yeah!” in a tone of voice that let me know this was really something.

What makes this worthy of a blog is here was a company that would never see a return using traditional broadcasting. Whether it was a stroke of luck or genius I don’t know, but they caught my eye on a cold, rainy day.

Our industry is experiencing some cold, rainy days. The question is: Are we using every available resource to attract the eyes of our market? Maybe you could put vinyl signs on demo Corollas saying, “You can drive this car for 50% of MSRP at Hometown Toyota” (Total of lease payments vs. MSRP). Minimal cost, and what a return on ‘around the block thinking’ with just one deal! 

Who knows, it might have your people saying, ‘ooooh yeah!’

One of my favorite quotes is ‘those who refuse to learn from history are condemned to relive it’. Only time will tell how much we will learn from this current dilemma, but one thing for certain – opinions on the situation are everywhere.  

I read with interest an article by Dale Pollak in Dealer Magazine titled “How do You Make Used Car Profit Today?” To summarize briefly, Pollak says the used car market is never going to be the same; no longer can the benchmark ‘be average per unit’ when discussing a dealership’s used car operation, but rather ‘total used car gross profit’.

Pollak admitted his view may draw criticism, but this statement I feel is true:  

“High average gross profit will not be the result of sitting across the table from a prospective buyer and convincing them to pay more than they should or need to for a similar vehicle. It is simply too easy for them to know better.” There’s that word again – Internet!

Two strategies were offered by Pollak as being critical for ‘S&P’ – that’s Surviving and Prospering. First, a dealership must have the ‘right’ cars on the lot. To do so they must utilize all tools available in measuring local market vehicle demand against local supply. I agree with that! We been hearing the term ‘information age’ for a long time, and the Internet goes both ways in providing insight for buyers and sellers.

The second point Pollak discussed is related to turn rate, to use his term – ‘velocity’. The premise is a dealership with a fresher unit should be able to price it for less and gross more compared to a dealership where a similar unit has sat unsold because of a higher price. I am not sure this is apples to apples, but does prove how important it is to daily, daily study your inventory status.

What are you going to say – these are difficult times, challenging times, time for change, the end of time? I say when it comes to ‘velocity’ change has never come so fast. Make it your business to stay ahead in terms of Automotive Intelligence because that’s what S&P is all about.

I appreciate how my employees look out for me They know if they find something interesting for this blog to put it on my desk. The other day there was an article entitled “If blogging is the sizzle, C.R.M. is the steak!” Right from the opening paragraph, it was good reading: 

“Almost every company knows that it is more expensive to acquire a new customer than to service an existing one. I say almost, because there are plenty of companies out there who don’t seem to understand this principle at all. Well, either that or they simply don’t care.”

The author’s point was very clear:  you need to not only have repeat customers, but you need to generate referral business from past clients… the key word being ‘generate’. Blogging was seen as a means of reaching new business, but regular contact with existing customers needed a more definitive program.

The Customer Relationship Management [CRM] system suggested several steps to stay consistent without being expensive.  

• Begin with good client information and update constantly – a valid email address is essential.
• Consider 8-10 touches a year, whether it is an e-campaign, postcard or quarterly hard copy/e-mail newsletters. The writer pointed out that is a lot of ‘touches’ but felt in today’s climate it was necessary, and I agree.
• The author had set up a program including four seasonal postcards as well as holiday postcards.
• Staying in contact with referral partners (professionals who send you business) once a month to let them know you are still here.

So who was this writer? A real estate agent; and read his comments on our industry as the case was made for CRM:

“Just think of the last great car salesman you ever worked with. You may have felt you received the best darn service, price, everything that fine sunny day when peace prevailed and all was well with the world. But do you have his number today? Can you pick up the phone right now and get a hold of him? The most likely answer is “no”. If that is how you’re running your business, then you’re spinning your wheels and leaving thousands of dollars on the table.”

If automotive advertising agencies are not providing or prompting you on effective advertising outside of the traditional media, you need to re-read the last sentence in the previous paragraph. Get a plan and work the plan in all areas of holding and growing business!

Posted article http://agentgenius.com/?p=201

If you are just waking up into this thing called the 4th quarter,or are wondering how you can do more with less?
Then you NEED to read the following…

NADA cites that among the traffic coming to your dealership for the first time – you are only going to close 9% of these customers during their first visit.  To everyone who has the ego that “you get me the traffic and we’ll do the rest” I want you to pay very close attention to the next few sentences. 
 
NADA cites that you will close 67% of all prospects who return to your dealership for a second time.  Wow, an amazing number but a true one.  So why is it that the average closing rate according to the same source NADA has only been around 17% for the last decade?  The reason is you are not getting the second time visits or B-Backs as we call them back into the store at a level even close to what you are seeing in first time traffic.  
 
The job of an automotive advertising agency such as mine is to get you the traffic.  I know that, this is not a sales tactic or method to dismiss low sales volume due to the market.  But the job of a great automotive advertising agency in this day and age is to “inform” their dealers about how to get more with less.  

My close friends and business partners who are running dealerships now are some of the best retail-oriented, and shrewd car guys I have ever had the please of working with. They understand just because a sales meeting is held that covers a broad range of topics that is not enough to make sure that the salesmen in their dealerships are covering all the bases and using the “road to a sale” mentality.  Follow-up, Follow-up and follow-up some more can be the difference in your dealership taking over in this market or just barely surviving.  
 
Put measures in place and then you yourself must follow-up daily to make sure that your sales people are constantly following up with their first time prospects. By doing this, you will sell more than you think you can sell this month and you will make more money.

The first lesson I ever learned in business was the following: 

“There are 3 types of people in this world”

1. Those who make things happen
2. Those who watch things happen
3. Those who stand around and wonder… What the hell just happened?

With the shape of the economy, car market, bailout, bad weather, lazy employees, holidays and every other excuse of why you are not selling cars in this month – my friend Mike Mynatt made a point today that shows why his stores are up in % of new vehicle sales this year, while the rest of his district is down 15%.  

“There are 2 types of dealers in this market”

1. Those who make up their mind to take over
2. Those that you can easily overtake

You see before all the slick CRM tools, Traffic reports, website stats and phone listening and tracking services. Mike walked around the dealership that he now runs with a legal pad as the used car manager and told all the sales people about all the fresh trades that just hit the lot. He sold his salespeople on how much money they could make off the fresh pieces and what fools they were if they didn’t sell the vehicles first. Mike got “buy-in” not once a month or once a week, but he did so every day. Every time he saw a customer with a sales person then saw the sales person later without the customer he would ask – “what happened to the guy in the red hat”?

Mike is in a large metro market with a couple of great franchises, but his relentless style of management and follow-up is why he has climbed as far as he has and also why in this market his stores continue to surpass last years numbers.