Dec 18, 2010 Paris Hilton announced her introduction into MotoGP at ME Hotel in Madrid Spain. (http://www.ultimatemotorcycling.com/paris-hilton-supermartxe-vip-motogp-team) "Oh God" was the common response as colleagues read the article. Here is my take on why I think it's great news.
Dec 16, 2010 J.D. Power Study, releases an article on how more riders are leaving the industry then there are new riders coming in. (http://www.motorcycledaily.com/2010/12/j-d-power-study-u-s-motorcycle-riders-aging-and-leaving-market/) The summary of the study contained in the press release is interesting for a number of reasons, not the least of which is the report that U.S. motorcycle buyers continue to get older, and are not being replaced with a sufficient number of new customers.
Just posting that, should be explanation in itself on why Paris Hilton entering into the motorcycle industry is great news. Paris, arguably one of the most marketable personalities today will bring more awareness to our industry. If you asked me yesterday who would be the most unlikely person to market a MotoGP team, she would have made the top 10 list. Yet there she is, in an outfit that should be standard for all motorcycle hotties. The only thing that would have made her introduction better, would have been to introduce the team here in the U.S. where the fan base of MotoGP already pales in comparison to other countries.
Now, maybe all those teens going on twenties with a new Paris Hilton poster hanging over there bed straddling a MotoGP 125 will dream like we always have of accelerating through the twisties with a hot young Paris look alike on the back and start opening the doors of our dealerships to find a way to make it happen. Maybe tomorrow we'll here of the Kardashian's cruising the streets on their new two wheeled machine trying to prove that they too can be like Paris.
Sunday, December 19, 2010
Saturday, October 23, 2010
Profit X - Powersports Business Las Vegas Pt.7
Keynote Presentation - 4 Strategies for Expanding Your Market Share
Lunch time on Sunday, sponsored by Manheim Specialty Auctions. Keynote speaker Dave Mitchell takes the stage and asks the audience if they had any expectations on his presentation for the day. Most of the audience shakes their heads left to right, because everyone was chewing on something. Dave replies that "no" is a good answer because he does some of his best work when there are no expectations. The title of his presentation had nothing to do with what he was talking about. It was better. It was "The Power of Understanding People".
Dave began by telling us his background, with a specialty in corporate human resources, and he had a good deal of experience understanding people. He called a volunteer from the audience, stood him on stage and told him that in a few moments he would like for him to recall something dramatic from his past. He then proceeded to tell the audience that the volunteer was experiencing what we all have experienced in the past, commonly referred to as stage fright. He says right at this moment our volunteer is experiencing high anxiety, a racing heart beat, sweat is beginning, and his body is giving him a fight or flight reflex. Meaning he is having a hard time putting things together in his head to recall any drama from his past. After explaining all the symptoms the volunteer was having, he went face to face with him and asked him to recite the alphabet. The volunteer got it wrong. Funny!!
He gave us four basic types of people, and gave us a comparison, and ways to recognize and appeal to them.
The Romantics
The Warriors
The Experts
The Masterminds
Romantics Vs. Warriors
-Emotional Sensitivity vs. logical sensitivity
-Indirect communication vs. direct communication
-Honor bar vs. aggressive negotiators
The Romantics:
-Trust their feelings about people and situations
-React strongly to emotion
-Value interaction among people
-Show appreciation of others and responds to praise
Recognizing the Romantics:
-They are personable and talkative
-Loyal and trusting
-Quick to praise you and rarely criticize
Appealing to the Romantics:
-Respect their feelings
-Praise them
-Develop a relationship and communicate specific expectations
The Warriors:
-Are Competitive
-Have a strong desire to win (in negotiations)
-Are Analytical
-Are often seen as driven and goal oriented
-Focus on one upmanship (always wanting the best of the best)
Recognizing the Warriors:
-They get to the point quickly
-May appear more irritated then they are
-Talk loud and fast
-Want an answer fast
-Negotiate aggressively
Appealing to The Warriors:
-Be direct
-Do not try to manage them
-Like to be treated professionally
-Wants a confident salesperson
-Be assertive
Experts versus Masterminds
-Details vs. "Big Picture"
-Cautious vs. Risk Taker
-Security vs. Excitement
The Experts:
-Trust what is certain and concrete
-Value Common sense consistence and reliability
-Tend to be specific and literal
-Give detailed instructions
-Present information in a step by step manner
Recognizing the Experts:
-They often have a great deal of knowledge about the product
-Very specific with their questions and requests
-Disappointed if things don't go exactly as they were told.
Appealing to the Experts:
-Be specific and provide details
-Respect the rules
-Respect their knowledge
-Be knowledgeable
-Be Patient
-Keep Promises
The Masterminds:
-Value features and benefits
-Likes to know how the benefits will effect them
-Tend to be impractical
-Can appear to be disorganized and absent minded
-Takes risks
Recognizing the Masterminds
-Conversation may go off on other tangents
-They will challenge you
-Charming and enthusiastic
-Uses language like "What if" or "would it be possible"
-Not as specific and more general in their questions and expectations
Appealing to the Masterminds
-Acknowledge and consider their ideas
-Be flexible
-Be enthusiastic
-Allow them to try new things
He went further in detail by explaining that inside the head of every person is a tool box and inside the tool box was a set of tools a hammer, pliers, screwdriver and a wrench and that when you deal with a customer its up to you to figure out what type of tool that customer is using. You'll have to reach into your toolbox and use the right tool to compliment the customer.
Dave's presentation was filled with humor and energy, he never lost the attention of the audience. His comparisons were directly related to the types of customers we (I) see everyday. For every comparison, I was able to put a customers face to. It was a great way to close out the Profit X for me. I enjoyed it.
That's "My Take"
Lunch time on Sunday, sponsored by Manheim Specialty Auctions. Keynote speaker Dave Mitchell takes the stage and asks the audience if they had any expectations on his presentation for the day. Most of the audience shakes their heads left to right, because everyone was chewing on something. Dave replies that "no" is a good answer because he does some of his best work when there are no expectations. The title of his presentation had nothing to do with what he was talking about. It was better. It was "The Power of Understanding People".
Dave began by telling us his background, with a specialty in corporate human resources, and he had a good deal of experience understanding people. He called a volunteer from the audience, stood him on stage and told him that in a few moments he would like for him to recall something dramatic from his past. He then proceeded to tell the audience that the volunteer was experiencing what we all have experienced in the past, commonly referred to as stage fright. He says right at this moment our volunteer is experiencing high anxiety, a racing heart beat, sweat is beginning, and his body is giving him a fight or flight reflex. Meaning he is having a hard time putting things together in his head to recall any drama from his past. After explaining all the symptoms the volunteer was having, he went face to face with him and asked him to recite the alphabet. The volunteer got it wrong. Funny!!
He gave us four basic types of people, and gave us a comparison, and ways to recognize and appeal to them.
The Romantics
The Warriors
The Experts
The Masterminds
Romantics Vs. Warriors
-Emotional Sensitivity vs. logical sensitivity
-Indirect communication vs. direct communication
-Honor bar vs. aggressive negotiators
The Romantics:
-Trust their feelings about people and situations
-React strongly to emotion
-Value interaction among people
-Show appreciation of others and responds to praise
Recognizing the Romantics:
-They are personable and talkative
-Loyal and trusting
-Quick to praise you and rarely criticize
Appealing to the Romantics:
-Respect their feelings
-Praise them
-Develop a relationship and communicate specific expectations
The Warriors:
-Are Competitive
-Have a strong desire to win (in negotiations)
-Are Analytical
-Are often seen as driven and goal oriented
-Focus on one upmanship (always wanting the best of the best)
Recognizing the Warriors:
-They get to the point quickly
-May appear more irritated then they are
-Talk loud and fast
-Want an answer fast
-Negotiate aggressively
Appealing to The Warriors:
-Be direct
-Do not try to manage them
-Like to be treated professionally
-Wants a confident salesperson
-Be assertive
Experts versus Masterminds
-Details vs. "Big Picture"
-Cautious vs. Risk Taker
-Security vs. Excitement
The Experts:
-Trust what is certain and concrete
-Value Common sense consistence and reliability
-Tend to be specific and literal
-Give detailed instructions
-Present information in a step by step manner
Recognizing the Experts:
-They often have a great deal of knowledge about the product
-Very specific with their questions and requests
-Disappointed if things don't go exactly as they were told.
Appealing to the Experts:
-Be specific and provide details
-Respect the rules
-Respect their knowledge
-Be knowledgeable
-Be Patient
-Keep Promises
The Masterminds:
-Value features and benefits
-Likes to know how the benefits will effect them
-Tend to be impractical
-Can appear to be disorganized and absent minded
-Takes risks
Recognizing the Masterminds
-Conversation may go off on other tangents
-They will challenge you
-Charming and enthusiastic
-Uses language like "What if" or "would it be possible"
-Not as specific and more general in their questions and expectations
Appealing to the Masterminds
-Acknowledge and consider their ideas
-Be flexible
-Be enthusiastic
-Allow them to try new things
He went further in detail by explaining that inside the head of every person is a tool box and inside the tool box was a set of tools a hammer, pliers, screwdriver and a wrench and that when you deal with a customer its up to you to figure out what type of tool that customer is using. You'll have to reach into your toolbox and use the right tool to compliment the customer.
Dave's presentation was filled with humor and energy, he never lost the attention of the audience. His comparisons were directly related to the types of customers we (I) see everyday. For every comparison, I was able to put a customers face to. It was a great way to close out the Profit X for me. I enjoyed it.
That's "My Take"
Thursday, October 21, 2010
Profit X - Powersports Business Las Vegas Pt.6
7 Creative solutions for Successful F&I
Peter Jones, Galt Enterprises was the speaker for this session. He spent some time at the beginning discussing the Red Flags Rule. It seems that there is a level of uncertainty on this subject and dealers had a lot of follow up questions. He recommended this site, www.afip.com, as a good resource for laws and ethics.
Peter started off with a time line in the industry for F&I, talking about when this industry started using the menu system. Which is an interesting subject for me. I am still curious how many dealers actually use a menu system for selling backend product and how successful it has been. But other then the timeline, there was no further discussion on it. He talked about when the financing loosened up and how backend profits increased as the result of it. His 7 solutions were as follows:
7. The Daily Doc Sheet - This was his creation on daily tracking of sales for every department. With Projections and Goals for each month.
6. Retro Programs - Definitely a choice dealer principals would have to make with an attorney or an accountant. My front line experience with a retro program was short lived. I know the short term payoff is not good, costs are higher, but if you think of it as long term, like retirement money, then you may get a decent return at the expiration of each policy. Seems a bit risky to me.
5. Get Down Payment - Something touched on by the finance panel the day before. With smaller advances, you'll need to make sure to get the down payment to maintain higher grosses per deal. When getting a down payment for the customer "Don't ask how much down they have, tell them how much they will need"
4. Cultivate Local Lenders - This has been successful and challenging for us. Credit Unions are your best choice here. You just have to meet there parameters and customers have to become members when you do a loan through them.
3. Compensation Plans - Compensate employees in your store who push PPM, and extended warranties. Customers will see service employees as neutral bodies that don't have interest on the sale of backend products.
2. Proper Sales Process - Sales must support F&I for it to be successful, ensure the sales team complements your F&I process.
1. EZ Pay System - Work with you credit card processor to allow recurring charges. Similar to how the "Home Shopping Network" does it. "Buy today for only 3 payments of..."
Overall Peter gave a good presentation. Two ideas stand out for me. The compensation plan and the EZ pay system. I would have liked to see more information on a menu system, which I know his company has. I have my own that's in it's infant stage. I need to see more of other menus to see how mine compares. Implementation of the menu system seems to be the biggest struggle from dealers I've talked to. Maybe next year.
That's "My Take"
Peter Jones, Galt Enterprises was the speaker for this session. He spent some time at the beginning discussing the Red Flags Rule. It seems that there is a level of uncertainty on this subject and dealers had a lot of follow up questions. He recommended this site, www.afip.com, as a good resource for laws and ethics.
Peter started off with a time line in the industry for F&I, talking about when this industry started using the menu system. Which is an interesting subject for me. I am still curious how many dealers actually use a menu system for selling backend product and how successful it has been. But other then the timeline, there was no further discussion on it. He talked about when the financing loosened up and how backend profits increased as the result of it. His 7 solutions were as follows:
7. The Daily Doc Sheet - This was his creation on daily tracking of sales for every department. With Projections and Goals for each month.
6. Retro Programs - Definitely a choice dealer principals would have to make with an attorney or an accountant. My front line experience with a retro program was short lived. I know the short term payoff is not good, costs are higher, but if you think of it as long term, like retirement money, then you may get a decent return at the expiration of each policy. Seems a bit risky to me.
5. Get Down Payment - Something touched on by the finance panel the day before. With smaller advances, you'll need to make sure to get the down payment to maintain higher grosses per deal. When getting a down payment for the customer "Don't ask how much down they have, tell them how much they will need"
4. Cultivate Local Lenders - This has been successful and challenging for us. Credit Unions are your best choice here. You just have to meet there parameters and customers have to become members when you do a loan through them.
3. Compensation Plans - Compensate employees in your store who push PPM, and extended warranties. Customers will see service employees as neutral bodies that don't have interest on the sale of backend products.
2. Proper Sales Process - Sales must support F&I for it to be successful, ensure the sales team complements your F&I process.
1. EZ Pay System - Work with you credit card processor to allow recurring charges. Similar to how the "Home Shopping Network" does it. "Buy today for only 3 payments of..."
Overall Peter gave a good presentation. Two ideas stand out for me. The compensation plan and the EZ pay system. I would have liked to see more information on a menu system, which I know his company has. I have my own that's in it's infant stage. I need to see more of other menus to see how mine compares. Implementation of the menu system seems to be the biggest struggle from dealers I've talked to. Maybe next year.
That's "My Take"
Profit X - Powersports Business Las Vegas Pt.5
12 Ways To Improve Lending Approval Rates
Opportunity...that's how I saw it. Where else would you have the opportunity to get 5 key players of financing in one panel to answer some questions. They were set up to discuss what the retail climate the powersports industry is in now, and what can be done to improve a dealership's approval percentage rate. But I saw it as an opportunity to find out if any had plans to make any real changes for the dealers. Here is who was on this panel, what they said, and some of the questions that were asked during this session.
Bob Byrne, Sheffield Financial
Tom Collins, Freedom Financial
Amy Kneeland, GE Money
Jeff Williams, American Honda Financial
Kevin Walsh, HSBC Card and Retail Services
Retail Climate for the Powersports industry. To summarize what was said into one word, it would be...Stability. The panel acknowledged the dramatic changes that happened to retail finance beginning in 2007/08 and that rapid changes had to be made at that time in order to remain a player in this industry. It affected a lot of dealers who relied on the deep purchases being made, especially the dealers who got used to buying parameters these lenders had set. I wrote a blog in February of this year called "Powersports Financing" and most of what they said on this day mirrored my thoughts put in that blog. Read it if you get a chance, I was spot on. Bottom line is during the rapid change it was a time of survival. They are past that now and are in the stability stage. They are making sure the same bad decisions that were being made in the past are not being made now. A lot of emphasis was made on accountability to the dealerships to get more from the customer like down payments, and income verification. Relationships should be built from the underwriters on up.
All of that led into the 12 ways to help improve retail lending approval rates. Each person on the panel had about 3 bullet points to discuss, by my count that would give us 15 ways, but I'm pretty sure that each lender had the same 3. Down Payment, Proof of Income, and ID verification. There might have been a couple that talked about putting the truth on every application, and I have no idea what they were talking about there. It got to the point it sounded like they were all repeating themselves. Questions came up shortly after and here are some of what was asked.
- Any first time buyer programs?
Tom from Freedom answered, "We have a first time buyer program, it's called a co signer"... Bob from Sheffield said there company has a Type S program for Suzuki dealers and Kawasaki has followed suit with a similar Type K program. In which I replied that it has been quite unsuccessful for the most part and that the parameters for that program have not been disclosed fully, by the underwriters... All lenders say they have no plans for a first time buyer program in the future.
- The Lenders have made a big push for dealers to seek out local credit unions and build a relationship with them, which we have had a good deal of success doing. Are there any plans to come out with an installment program similar to HSBC Rev Charger or GE's Funancing?
NO! from all lenders, except Amy, who said that Polaris/GE is currently working on a pilot program that may be introduced down the line.
- Tom from Freedom brought up mortgages being possibly overlooked under the right circumstances. Given the current state of home owners, do ALL the lenders have an oversight plan as more and more foreclosures begin to show up on the bureaus?
No, not at this time from all lenders, except Freedom.
- The Watercraft Manufacturers are pushing for dealers to increase there inventory for 2011, a big draw back is the lack of long term financing available to consumers. Do any lenders plan on having any longer terms available for watercraft?
NO! from all lenders.
- Given the Red Flags Rule becoming active in January 2011, what are some of the guidelines the dealers/lenders have to face before then.
This was funny, no one on the panel wanted to take this question. Kevin did his best but missed it by a mile. I think this is the reason Peter Jones opened with it in his session the following day. Given the fact the Red Flags Rule is in place now, but no enforcement will be made until January 1, 2011, I think every dealer needs to do their homework. You're still liable for the Red Flags Rule dating back to November 1, 2008. By coincidence I had already scheduled a webinar for the Red Flags Rule on October 20th and I have some good information to share, which I will when all parts are finished.
In conclusion to this session, I would say that the lenders did not provide us with any new information. If you were worried about the stability of any of these company's, don't be. They are past the survival stage, on stable grounds and don't have any plans to expose themselves to any risks at this time. Sounds to me like it would be a good time for a new finance company to come in aggressively and sweep the leaned back chairs out from underneath them.
That's "My Take"
Opportunity...that's how I saw it. Where else would you have the opportunity to get 5 key players of financing in one panel to answer some questions. They were set up to discuss what the retail climate the powersports industry is in now, and what can be done to improve a dealership's approval percentage rate. But I saw it as an opportunity to find out if any had plans to make any real changes for the dealers. Here is who was on this panel, what they said, and some of the questions that were asked during this session.
Bob Byrne, Sheffield Financial
Tom Collins, Freedom Financial
Amy Kneeland, GE Money
Jeff Williams, American Honda Financial
Kevin Walsh, HSBC Card and Retail Services
Retail Climate for the Powersports industry. To summarize what was said into one word, it would be...Stability. The panel acknowledged the dramatic changes that happened to retail finance beginning in 2007/08 and that rapid changes had to be made at that time in order to remain a player in this industry. It affected a lot of dealers who relied on the deep purchases being made, especially the dealers who got used to buying parameters these lenders had set. I wrote a blog in February of this year called "Powersports Financing" and most of what they said on this day mirrored my thoughts put in that blog. Read it if you get a chance, I was spot on. Bottom line is during the rapid change it was a time of survival. They are past that now and are in the stability stage. They are making sure the same bad decisions that were being made in the past are not being made now. A lot of emphasis was made on accountability to the dealerships to get more from the customer like down payments, and income verification. Relationships should be built from the underwriters on up.
All of that led into the 12 ways to help improve retail lending approval rates. Each person on the panel had about 3 bullet points to discuss, by my count that would give us 15 ways, but I'm pretty sure that each lender had the same 3. Down Payment, Proof of Income, and ID verification. There might have been a couple that talked about putting the truth on every application, and I have no idea what they were talking about there. It got to the point it sounded like they were all repeating themselves. Questions came up shortly after and here are some of what was asked.
- Any first time buyer programs?
Tom from Freedom answered, "We have a first time buyer program, it's called a co signer"... Bob from Sheffield said there company has a Type S program for Suzuki dealers and Kawasaki has followed suit with a similar Type K program. In which I replied that it has been quite unsuccessful for the most part and that the parameters for that program have not been disclosed fully, by the underwriters... All lenders say they have no plans for a first time buyer program in the future.
- The Lenders have made a big push for dealers to seek out local credit unions and build a relationship with them, which we have had a good deal of success doing. Are there any plans to come out with an installment program similar to HSBC Rev Charger or GE's Funancing?
NO! from all lenders, except Amy, who said that Polaris/GE is currently working on a pilot program that may be introduced down the line.
- Tom from Freedom brought up mortgages being possibly overlooked under the right circumstances. Given the current state of home owners, do ALL the lenders have an oversight plan as more and more foreclosures begin to show up on the bureaus?
No, not at this time from all lenders, except Freedom.
- The Watercraft Manufacturers are pushing for dealers to increase there inventory for 2011, a big draw back is the lack of long term financing available to consumers. Do any lenders plan on having any longer terms available for watercraft?
NO! from all lenders.
- Given the Red Flags Rule becoming active in January 2011, what are some of the guidelines the dealers/lenders have to face before then.
This was funny, no one on the panel wanted to take this question. Kevin did his best but missed it by a mile. I think this is the reason Peter Jones opened with it in his session the following day. Given the fact the Red Flags Rule is in place now, but no enforcement will be made until January 1, 2011, I think every dealer needs to do their homework. You're still liable for the Red Flags Rule dating back to November 1, 2008. By coincidence I had already scheduled a webinar for the Red Flags Rule on October 20th and I have some good information to share, which I will when all parts are finished.
In conclusion to this session, I would say that the lenders did not provide us with any new information. If you were worried about the stability of any of these company's, don't be. They are past the survival stage, on stable grounds and don't have any plans to expose themselves to any risks at this time. Sounds to me like it would be a good time for a new finance company to come in aggressively and sweep the leaned back chairs out from underneath them.
That's "My Take"
Tuesday, October 19, 2010
Profit X - Powersports Business Las Vegas Pt.4
5 Behaviors That Will Make (or Break) Any Sale.
I was not a big fan of The Roller Institute. My first encounter was when Suzuki attempted to push Glenn Roller into the dealers, Bob M. was with Suzuki at the time, and Dave W. came and offered up a sample of the book for me to look over. It was just before a Suzuki dealer meeting when they were going to introduce the program to dealers. After Dave gave me the samples, I never heard from him again. I listened to the book on CD's and did like most of what I heard, but didn't think I'd have a salesman interested in investing in themselves to purchase the program. My next encounter was when Kymco began to offer the program to dealers and they would 50/50 co-op the cost of the program. I figured I could talk my dealer principal, at the time, to invest a portion of this amount...Wrong. Kymco, however believed in the program and we were able to work out 100% co-op.
Awhile later I learned that Dave W. was no longer with The Roller Institute, and Bob M. had replaced him. Glenn Roller and Bob M. visited the dealership I'm at now to video tape, over a weekend, all the sales transactions that took place in our accessories department. They were using the footage for something in the future and offered advice to the salespeople as needed. While at the dealership, Bob would visit with the vehicle sales department. With more then one salesperson Bob would give his body language "assessment" to the discomfort of the salesman. He also analyzed the body language of a vehicle sales transaction, in which he turned out to be incorrect.
I was really looking forward to Glenn Roller's session just to get a better understanding of what it is he's trying to teach/sell. He DID NOT disappoint, his presentation was extremely entertaining. He began by looking for two volunteers from the audience. One was to be his spouse, in which he would try to "sell" her on the possibility of intercourse. The other was a customer in which he would try to sell him a helmet. The "5 behaviors that will make (or break) any sale, was actually a look at the first 5 levels of "The 7 Evolutionary Levels to Profound Selling" the title of his book. This session was off to a great start. I'm not sure if I got all these right, I was more into his presentation then I was into taking notes.
Level 1 - The Self Absorbed Salesperson - Represents the starting point for most salespeople. Salespeople can be underwhelming, hardly saying anything to make the sale, to overwhelming, to the point of obnoxious. It was hard to describe the humor in the presentation when approaching the "spouse" and the "customer", at this level, but Glenn did a great job to make his point.
Level 2 - The Probing Salesperson - As I understand it, this level is a level 1 salesperson who asks questions, but doesn't necessarily listen to the answer. Here he asked his spouse questions on how her day went but replied with his own agenda. Again you had to be there...comedy.
Level 3 - The Highly Competent Salesperson (Manipulative) - Here he referred to one of the greatest Level 3's he's seen, President Clinton. An extremely competent salesperson, who has mastered the process of selling and the steps it takes to get there, he has an understanding of body language. Glenn then gave us some key body language reads, he said would be just enough to make us dangerous for the evenings cocktail reception. Like a rub behind the ear would indicate a customers desire to end the conversation. Me being who I am, actually put it to the test a couple times, during the lunch on the final day, to see if the person I was talking to would get it. He didn't. I even rubbed the back of my head, indicating my dislike for the topic, as my table was beginning to do some salesman bashing, and none of the 5 guys picked up on it. It was fun for me.
Level 4 - The Highly Competent Salesperson (Non-Manipulative) - This salesperson is more self aware. A level 4 is very rare in sales. One who understands that those who manipulate others usually have a fear of honesty, and they don't want to be discovered. As he turns to his volunteer spouse, she gives him the raised eyebrow, which Glenn tells us is a sign that the person is waiting for the uncertain surprise by his next action. The comedy in all this, in my opinion, she was waiting to be coerced into doing something she didn't want to do. Like it was going to be a magic trick. So she really had her guard up.
Level 5 - The Self Aware Salesperson - This one I should have took more notes on, he gave a description of 4 personalities and had the audience guess what types the volunteers were. As I understand it, this level of salesperson is aware of the type of person he or she is and the type of person the customer is and can therefore evolve with a heightened ability to make the sale without manipulation or fear. I could be wrong, but he did sit next to his volunteer spouse and proceeded to sell her on the idea of intercourse, in which she responded, "I'll think about it". To the audience it was not a "NO", thus a successful sale.
I had uncertain expectations, coming into this session. I believe I have a better understanding of Glenn Roller and his methods now. In my opinion he's about self awareness, understanding the type of person you are, which translates into the type of salesperson you are. I took his free efficiency test when I got home, called the Sales eIQ, which you can find at www.theglennrollerinstitute.com, and I scored a 57%. That puts me at the Level 4 sales person, which may explain why I got what he was saying up to that level and he lost me into Level 5.
I believe the eIQ may be a good resource for your next new hire. If you have a good understanding of the level of salesperson you are dealing with it may help in the way you train them.
That's "My Take"
I was not a big fan of The Roller Institute. My first encounter was when Suzuki attempted to push Glenn Roller into the dealers, Bob M. was with Suzuki at the time, and Dave W. came and offered up a sample of the book for me to look over. It was just before a Suzuki dealer meeting when they were going to introduce the program to dealers. After Dave gave me the samples, I never heard from him again. I listened to the book on CD's and did like most of what I heard, but didn't think I'd have a salesman interested in investing in themselves to purchase the program. My next encounter was when Kymco began to offer the program to dealers and they would 50/50 co-op the cost of the program. I figured I could talk my dealer principal, at the time, to invest a portion of this amount...Wrong. Kymco, however believed in the program and we were able to work out 100% co-op.
Awhile later I learned that Dave W. was no longer with The Roller Institute, and Bob M. had replaced him. Glenn Roller and Bob M. visited the dealership I'm at now to video tape, over a weekend, all the sales transactions that took place in our accessories department. They were using the footage for something in the future and offered advice to the salespeople as needed. While at the dealership, Bob would visit with the vehicle sales department. With more then one salesperson Bob would give his body language "assessment" to the discomfort of the salesman. He also analyzed the body language of a vehicle sales transaction, in which he turned out to be incorrect.
I was really looking forward to Glenn Roller's session just to get a better understanding of what it is he's trying to teach/sell. He DID NOT disappoint, his presentation was extremely entertaining. He began by looking for two volunteers from the audience. One was to be his spouse, in which he would try to "sell" her on the possibility of intercourse. The other was a customer in which he would try to sell him a helmet. The "5 behaviors that will make (or break) any sale, was actually a look at the first 5 levels of "The 7 Evolutionary Levels to Profound Selling" the title of his book. This session was off to a great start. I'm not sure if I got all these right, I was more into his presentation then I was into taking notes.
Level 1 - The Self Absorbed Salesperson - Represents the starting point for most salespeople. Salespeople can be underwhelming, hardly saying anything to make the sale, to overwhelming, to the point of obnoxious. It was hard to describe the humor in the presentation when approaching the "spouse" and the "customer", at this level, but Glenn did a great job to make his point.
Level 2 - The Probing Salesperson - As I understand it, this level is a level 1 salesperson who asks questions, but doesn't necessarily listen to the answer. Here he asked his spouse questions on how her day went but replied with his own agenda. Again you had to be there...comedy.
Level 3 - The Highly Competent Salesperson (Manipulative) - Here he referred to one of the greatest Level 3's he's seen, President Clinton. An extremely competent salesperson, who has mastered the process of selling and the steps it takes to get there, he has an understanding of body language. Glenn then gave us some key body language reads, he said would be just enough to make us dangerous for the evenings cocktail reception. Like a rub behind the ear would indicate a customers desire to end the conversation. Me being who I am, actually put it to the test a couple times, during the lunch on the final day, to see if the person I was talking to would get it. He didn't. I even rubbed the back of my head, indicating my dislike for the topic, as my table was beginning to do some salesman bashing, and none of the 5 guys picked up on it. It was fun for me.
Level 4 - The Highly Competent Salesperson (Non-Manipulative) - This salesperson is more self aware. A level 4 is very rare in sales. One who understands that those who manipulate others usually have a fear of honesty, and they don't want to be discovered. As he turns to his volunteer spouse, she gives him the raised eyebrow, which Glenn tells us is a sign that the person is waiting for the uncertain surprise by his next action. The comedy in all this, in my opinion, she was waiting to be coerced into doing something she didn't want to do. Like it was going to be a magic trick. So she really had her guard up.
Level 5 - The Self Aware Salesperson - This one I should have took more notes on, he gave a description of 4 personalities and had the audience guess what types the volunteers were. As I understand it, this level of salesperson is aware of the type of person he or she is and the type of person the customer is and can therefore evolve with a heightened ability to make the sale without manipulation or fear. I could be wrong, but he did sit next to his volunteer spouse and proceeded to sell her on the idea of intercourse, in which she responded, "I'll think about it". To the audience it was not a "NO", thus a successful sale.
I had uncertain expectations, coming into this session. I believe I have a better understanding of Glenn Roller and his methods now. In my opinion he's about self awareness, understanding the type of person you are, which translates into the type of salesperson you are. I took his free efficiency test when I got home, called the Sales eIQ, which you can find at www.theglennrollerinstitute.com, and I scored a 57%. That puts me at the Level 4 sales person, which may explain why I got what he was saying up to that level and he lost me into Level 5.
I believe the eIQ may be a good resource for your next new hire. If you have a good understanding of the level of salesperson you are dealing with it may help in the way you train them.
That's "My Take"
Profit X - Powersports Business Las Vegas Pt.3
8 Proven High Impact Low Cost Sales and Marketing Strategies
Since two sessions were divided at the same time, I had a hard time deciding which one to sit in on. The other session was "5 Musts for Greater Pre-owned Profits". I chose the one that best suited my current position at work, and even though neither one applied to me, I knew the low cost sales and marketing would include some social networking strategies, and I am the social network "guy" at my dealership. Plus, Wanda Kenton Smith, our speaker, came into the room before Don Cooper spoke, and was lively and shook hands with as many people as she could, and was the one person I traded seats with, when moving out of my comfort zone.
For some reason I had a hard time following this presentation. Not that it was a bad presentation, it just didn't grab my attention. I took notes on some very good points Wanda made and I'll share them with you here and give you my take on some ideas our dealership already does and can do.
"Your Website is the new FRONT DOOR of your business" this rings true on a large percentage of our customers. If your like us there are several advertisements that lead the customer to a link to our website. First impressions say a lot. So many of todays powersports websites look the same, there is nothing that really sticks out on a consumers standpoint that would make them want to come and visit the store after visiting and searching the website. So use things on your site that will leave an impression, like, YouTube videos. One that creates an impact, and it does not have to be a big production, in fact amateur videos work. Take videos while walking around the store and introduce them to the departments and the employees that work in them. One idea that came to mind as she was speaking. We recently did a Halloween theme at the entrance of the store, that had giant pumpkins grown from the owners themselves. The display took some major effort by the owners daughter and employees. It would have been great to start a video from the moment the pumpkins were picked up from the garden and delivered to the store and then video taped the assembly of the display and posted the video in super fast time. Then on our social network site post the pictures of all the individuals and families who pose in the display.
Another good idea came as she was describing study groups, focus groups, and having factory reps come in. We have the luxury of having the legend of motorcycles here in our dealership. We could set up educational/training seminars from the legend himself. Like how to change a tire, how to fix a flat, how to clean an oil filter. These could all be short small seminars on a Saturday designed for a small group who pre register for the class. This itself would drive more people in the door each weekend. A class can be set up every weekend or every other weekend and special guest or factory reps can be invited. Our dealership already does something similar, monthly, with a "Movie Nights with the Greats" where legends of motorcross, motorcycles, industry related names narrate movies that they were involved with. The turnout has been incredible.
There was an emphasis made on social network sites. The numbers shared were incredible, with Facebook leading, and Twitter rapidly growing. The amount of potential is staggering and far from it's peak. Definite signs that if your dealership is not social networking, then you are already behind the eight ball. A dealer in the audience stated that he has a hard enough time keeping his employees off the social network sites and cant see allowing it and if he did it would require a full time employee. Being the "guy" for our facebook account I can honestly tell you that less then 5 minutes of time is needed just to post an event a picture or status update 2 to 3 times a day. Plus, if you link your twitter account to your facebook it will automatically post when you update your status. Two birds with one stone. Oh yeah, and it's FREE!!! There was no real answers on how to be successful with the social network sites. There is not enough data to compare what works and what doesn't. Social networking is new and trying is better then not trying.
That's "My Take"
Since two sessions were divided at the same time, I had a hard time deciding which one to sit in on. The other session was "5 Musts for Greater Pre-owned Profits". I chose the one that best suited my current position at work, and even though neither one applied to me, I knew the low cost sales and marketing would include some social networking strategies, and I am the social network "guy" at my dealership. Plus, Wanda Kenton Smith, our speaker, came into the room before Don Cooper spoke, and was lively and shook hands with as many people as she could, and was the one person I traded seats with, when moving out of my comfort zone.
For some reason I had a hard time following this presentation. Not that it was a bad presentation, it just didn't grab my attention. I took notes on some very good points Wanda made and I'll share them with you here and give you my take on some ideas our dealership already does and can do.
"Your Website is the new FRONT DOOR of your business" this rings true on a large percentage of our customers. If your like us there are several advertisements that lead the customer to a link to our website. First impressions say a lot. So many of todays powersports websites look the same, there is nothing that really sticks out on a consumers standpoint that would make them want to come and visit the store after visiting and searching the website. So use things on your site that will leave an impression, like, YouTube videos. One that creates an impact, and it does not have to be a big production, in fact amateur videos work. Take videos while walking around the store and introduce them to the departments and the employees that work in them. One idea that came to mind as she was speaking. We recently did a Halloween theme at the entrance of the store, that had giant pumpkins grown from the owners themselves. The display took some major effort by the owners daughter and employees. It would have been great to start a video from the moment the pumpkins were picked up from the garden and delivered to the store and then video taped the assembly of the display and posted the video in super fast time. Then on our social network site post the pictures of all the individuals and families who pose in the display.
Another good idea came as she was describing study groups, focus groups, and having factory reps come in. We have the luxury of having the legend of motorcycles here in our dealership. We could set up educational/training seminars from the legend himself. Like how to change a tire, how to fix a flat, how to clean an oil filter. These could all be short small seminars on a Saturday designed for a small group who pre register for the class. This itself would drive more people in the door each weekend. A class can be set up every weekend or every other weekend and special guest or factory reps can be invited. Our dealership already does something similar, monthly, with a "Movie Nights with the Greats" where legends of motorcross, motorcycles, industry related names narrate movies that they were involved with. The turnout has been incredible.
There was an emphasis made on social network sites. The numbers shared were incredible, with Facebook leading, and Twitter rapidly growing. The amount of potential is staggering and far from it's peak. Definite signs that if your dealership is not social networking, then you are already behind the eight ball. A dealer in the audience stated that he has a hard enough time keeping his employees off the social network sites and cant see allowing it and if he did it would require a full time employee. Being the "guy" for our facebook account I can honestly tell you that less then 5 minutes of time is needed just to post an event a picture or status update 2 to 3 times a day. Plus, if you link your twitter account to your facebook it will automatically post when you update your status. Two birds with one stone. Oh yeah, and it's FREE!!! There was no real answers on how to be successful with the social network sites. There is not enough data to compare what works and what doesn't. Social networking is new and trying is better then not trying.
That's "My Take"
Monday, October 18, 2010
Profit X - Powersports Business Las Vegas Pt.2
9 Ways to Dominate Your Market
The first session of the weekend was given by Don Cooper, the Sales Heretic. A very high energy, sometimes intense, speaker. He opens up by talking about how, we as individuals need to learn how to operate outside of our comfort zone. And, to stress his point, he made everyone get up from the seat they were sitting and move to another seat and meet the someone new sitting next to you. I'm not sure about everyone else, but just by attending I was already outside of my comfort zone. Plus I lost my front row seating, not cool, but point well taken.
He talks about the "old model" of doing business was all about the product, which is still being practiced today. Ex. Sell the features and benefits of the product, what features are better on this product then on that product. Bottom line here is "The more we know our product the worse we are at selling it". Even saying at one point that product knowledge is overrated. This comment struck a chord on someone in the audience, who commented that without product knowledge you couldn't sell the product. In which, Don replied "right" I said overrated, not unnecessary. Today the "new model" is all about the customer. Customers today are more likely to have researched the features and benefits of the product they're interested in, they are more knowledgeable, more savvy, they have more choices, and they "share more" (online). Which lead into the 9 ways to dominate your market. ( Don instructed us to share this with your people, but out of respect to his work I'll only highlight the nine ways, on this blog, and not get into full detail.)
1. Give buyers what they really want - Consciously and Subconsciously. Respect the customers time, intelligence, values, dignity and individuality.
2. Stop driving prospects away - There are ten things that salespeople do that buyers hate most. The biggest mistake most salespeople make are not understanding the prospect's needs, desires, concerns, values and priorities.
3. Master the two most important sales skills - Asking questions and listening.
4. Deliver better product presentations - If you have asked the right questions and listened to their answers, your presentations should be better.
5. Differentiate your products and dealership - I know everyone in our area tries or tried to compete on price alone, but what makes your dealer unique?
6. Embrace New Technology - This is one way that nearly every speaker touched base on. Things like video, blogs, and social media.
7. Create memorable customer experiences - Instead of dealership and customer, turn it into host and guest.
8. Develop strong customer relationships - here is a reminder that its easier to keep the customers you have, rather then try to get any new ones.
9. Train your people - Alright this one should go without saying but most dealers emphasize training on vehicle sales only but forget to regularly train service people, administrative people and especially the managers.
Don Cooper was the first speaker of the morning and perfectly suited to do so, his high energy elevated everyone else. I mentioned intense because at times his vocals would tweak the microphone and send a ring into the audience. He involved the audience, I think, to the point of slightly annoying. Luckily for me, since I had to change seats, I sat next to a GM of an Alaska dealership who had no problems sharing when asked.
Some good points were made at this session. Did it provide me with anything I haven't heard before? No. But like all seminars it brings to front some of the things that have been pushed back and reminders that need to be heard from time to time. Overall this session was great. My only dislikes are the loud tones used on occasion, most people can get your point with out you having to yell it to the audience, and salesman bashing. This one I'll bring up in several parts of this blog. It's no secret, if you've read my previous blogs, I am a fan of the salesperson (vehicle, pg&a, and service) and believe the right people and the right training can change the "salesman" perception that most people have. More of that on the last part of this blog.
That's "My Take"
The first session of the weekend was given by Don Cooper, the Sales Heretic. A very high energy, sometimes intense, speaker. He opens up by talking about how, we as individuals need to learn how to operate outside of our comfort zone. And, to stress his point, he made everyone get up from the seat they were sitting and move to another seat and meet the someone new sitting next to you. I'm not sure about everyone else, but just by attending I was already outside of my comfort zone. Plus I lost my front row seating, not cool, but point well taken.
He talks about the "old model" of doing business was all about the product, which is still being practiced today. Ex. Sell the features and benefits of the product, what features are better on this product then on that product. Bottom line here is "The more we know our product the worse we are at selling it". Even saying at one point that product knowledge is overrated. This comment struck a chord on someone in the audience, who commented that without product knowledge you couldn't sell the product. In which, Don replied "right" I said overrated, not unnecessary. Today the "new model" is all about the customer. Customers today are more likely to have researched the features and benefits of the product they're interested in, they are more knowledgeable, more savvy, they have more choices, and they "share more" (online). Which lead into the 9 ways to dominate your market. ( Don instructed us to share this with your people, but out of respect to his work I'll only highlight the nine ways, on this blog, and not get into full detail.)
1. Give buyers what they really want - Consciously and Subconsciously. Respect the customers time, intelligence, values, dignity and individuality.
2. Stop driving prospects away - There are ten things that salespeople do that buyers hate most. The biggest mistake most salespeople make are not understanding the prospect's needs, desires, concerns, values and priorities.
3. Master the two most important sales skills - Asking questions and listening.
4. Deliver better product presentations - If you have asked the right questions and listened to their answers, your presentations should be better.
5. Differentiate your products and dealership - I know everyone in our area tries or tried to compete on price alone, but what makes your dealer unique?
6. Embrace New Technology - This is one way that nearly every speaker touched base on. Things like video, blogs, and social media.
7. Create memorable customer experiences - Instead of dealership and customer, turn it into host and guest.
8. Develop strong customer relationships - here is a reminder that its easier to keep the customers you have, rather then try to get any new ones.
9. Train your people - Alright this one should go without saying but most dealers emphasize training on vehicle sales only but forget to regularly train service people, administrative people and especially the managers.
Don Cooper was the first speaker of the morning and perfectly suited to do so, his high energy elevated everyone else. I mentioned intense because at times his vocals would tweak the microphone and send a ring into the audience. He involved the audience, I think, to the point of slightly annoying. Luckily for me, since I had to change seats, I sat next to a GM of an Alaska dealership who had no problems sharing when asked.
Some good points were made at this session. Did it provide me with anything I haven't heard before? No. But like all seminars it brings to front some of the things that have been pushed back and reminders that need to be heard from time to time. Overall this session was great. My only dislikes are the loud tones used on occasion, most people can get your point with out you having to yell it to the audience, and salesman bashing. This one I'll bring up in several parts of this blog. It's no secret, if you've read my previous blogs, I am a fan of the salesperson (vehicle, pg&a, and service) and believe the right people and the right training can change the "salesman" perception that most people have. More of that on the last part of this blog.
That's "My Take"
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