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"
Profit X - Powersports Business Las Vegas Pt.1
On October 15th, Powersports Business held their 2nd annual ProfitX, at the Red Rock Resort in Las Vegas. It was a weekend event and I was able to attend both the Saturday and Sunday "Educational Sessions". Each part will include "My Take" on each individual session that I attended including my personal favorite, the keynote presentation by Dave Mitchell.
The sessions were divided into two groups, a "Sales and Marketing track" and a "Powering Profits Track". I attended most of the sales and marketing track, therefore, don't have a take on the powering profits track. Powersports Business did a great job of dividing the two and recommended more then one person from your dealership take advantage of all the sessions. So I would suggest doing that, if there is a 3rd annual event.
Here is a list of the sessions I participated in:
- 9 Ways to Dominate Your Market, by Don Cooper
- 8 High-Impact, Low-Cost Marketing Tactics, by Wanda Kenton Smith
- 5 Behaviors That Will Make(or Break)Any Sale, by Glenn Roller
- 12 Ways To Improve Retail Lending Approval Rates, panel by Bob Byrne, Sheffield, Tom Collins, Freedom, Amy Kneeland, GE, Jeff Williams, AHFC, Kevin Walsh, HSBC.
- 7 Creative Solutions for Successful F&I, by Peter Jones
- 4 Strategies for Expanding Your Market Share, keynote by, Dave Mitchell
I'll also include "My Take" on the entire event, look for 8 parts in upcoming blogs all to be posted ASAP.
The sessions were divided into two groups, a "Sales and Marketing track" and a "Powering Profits Track". I attended most of the sales and marketing track, therefore, don't have a take on the powering profits track. Powersports Business did a great job of dividing the two and recommended more then one person from your dealership take advantage of all the sessions. So I would suggest doing that, if there is a 3rd annual event.
Here is a list of the sessions I participated in:
- 9 Ways to Dominate Your Market, by Don Cooper
- 8 High-Impact, Low-Cost Marketing Tactics, by Wanda Kenton Smith
- 5 Behaviors That Will Make(or Break)Any Sale, by Glenn Roller
- 12 Ways To Improve Retail Lending Approval Rates, panel by Bob Byrne, Sheffield, Tom Collins, Freedom, Amy Kneeland, GE, Jeff Williams, AHFC, Kevin Walsh, HSBC.
- 7 Creative Solutions for Successful F&I, by Peter Jones
- 4 Strategies for Expanding Your Market Share, keynote by, Dave Mitchell
I'll also include "My Take" on the entire event, look for 8 parts in upcoming blogs all to be posted ASAP.
Sunday, August 15, 2010
The Boys Club
I haven't blogged in awhile. It's amazing how much time social networking takes up of your allocated computer time. Like most I'm blogging, facebooking, tweeting, not so much my spacing anymore. I've got my powersports job twitter, my Designz job twitter, construction job twitter and networking on Linkedin. All that and 2 gmails, charter, and 2 separate work emails. The time you put aside for computer interaction is gone and the thoughts you were ready to type out usually vanish somewhere.
Anyhow alot has been going on in my little power sports world. Most recently there have been some employee changes going on at my new employer. There have been a couple salesman who have moved out and a couple who have moved in. The ones who have moved in are part of an old crew from the past, and in my little power sports world, word about changes in a dealership travels fast. Now that 80% of the sales team is from an old team from another dealership, there has been several more sales people wanting to be a part of that team again. I've had several responses from these sales people from the other dealership, that they too want in, when there is an available position. Mostly because they want to be a part of a winning "Team" or "family" again, as some have put it. All of this reminds me of my previous, clueless, employer who called this "Team" or "Family" of sales people nothing but a "boys club" and meant it in the most derogatory term. So here's my take on how to build a "Boys Club" and make it a team or family of sales people who long for structure like it, and will always want to be a part of it over and over again.
Recently I watched a movie called the "grown ups" if you haven't seen it then I would recommend it, especially if your a married man with kids. Too funny. Anyhow it was about a team of mismatched kids who had there own individual personalities and strengths that when they teamed up to play ball they made a championship winning team. This is what you need to vision when building your sales team. Most of us think of your best salesperson and you say to yourself, if I can only clone this one salesperson I would be able to rule the world. Think about all the different personalities of your customers and the different events that take place to make that sale happen. Imagine having the ability to match personalities and strengths with your sales crew or better yet having a sales crew that can make the distinction and react appropriately.
Now take this group of mismatched misfits and give them structure. Structure is the key ingredient in building a sales team. Many times we take a new salesperson stick him/her out on the sales floor and watch as they learn how to sink or swim. While this may make an individual shine, if they have any kind of ability, it doesn't build a good team. As we grew up and played any kind of team sports we always heard the same phrase..There is no "I" in team. Same is true on the sales floor. One individual will not keep the lights on and the doors open or keep all the customers from walking out the door. Build a structured sales team, one who knows what is expected from the time they walk in to work until the time they leave. And like all team sports practice practice practice. It's not enough to train someone with just hands on experience.
Now you need a good coach. One who is motivating, one who has played the game before, one who knows how to use each individuals strength to make good plays. A coach that can build on a teams strength and not just an individuals. Getting out on the field and playing a with the team. Knowing when a substitution is needed. Take the team out on occasion, it helps build trust and understanding. A coach who sees him/herself as a part of the team.
When you build your dealership, and your the owner, the GM, or the sales manager, and someone asks you how you're succeeding or have become successful. Your response is always, "I have the best damn sales TEAM on the planet". Whether its a "boys club", "family" or "Team", there's nothing wrong with the comrodity that comes from the strength a group of individuals make when they come together, and they'll will never forget the feeling of being a part of that environment.
Google the word "Team" and wikipedia will give you this quick definition.
A team comprises a group of people linked in a common purpose. Teams are especially appropriate for conducting tasks that are high in complexity and have many interdependent subtasks.
A group in itself does not necessarily constitute a team. Teams normally have members with complementary skills and generate synergy through a coordinated effort which allows each member to maximize his or her strengths and minimize his or her weaknesses. Team members need to learn how to help one another, help other team members realize their true potential, and create an environment that allows everyone to go beyond their limitations.
That's "My Take"
Anyhow alot has been going on in my little power sports world. Most recently there have been some employee changes going on at my new employer. There have been a couple salesman who have moved out and a couple who have moved in. The ones who have moved in are part of an old crew from the past, and in my little power sports world, word about changes in a dealership travels fast. Now that 80% of the sales team is from an old team from another dealership, there has been several more sales people wanting to be a part of that team again. I've had several responses from these sales people from the other dealership, that they too want in, when there is an available position. Mostly because they want to be a part of a winning "Team" or "family" again, as some have put it. All of this reminds me of my previous, clueless, employer who called this "Team" or "Family" of sales people nothing but a "boys club" and meant it in the most derogatory term. So here's my take on how to build a "Boys Club" and make it a team or family of sales people who long for structure like it, and will always want to be a part of it over and over again.
Recently I watched a movie called the "grown ups" if you haven't seen it then I would recommend it, especially if your a married man with kids. Too funny. Anyhow it was about a team of mismatched kids who had there own individual personalities and strengths that when they teamed up to play ball they made a championship winning team. This is what you need to vision when building your sales team. Most of us think of your best salesperson and you say to yourself, if I can only clone this one salesperson I would be able to rule the world. Think about all the different personalities of your customers and the different events that take place to make that sale happen. Imagine having the ability to match personalities and strengths with your sales crew or better yet having a sales crew that can make the distinction and react appropriately.
Now take this group of mismatched misfits and give them structure. Structure is the key ingredient in building a sales team. Many times we take a new salesperson stick him/her out on the sales floor and watch as they learn how to sink or swim. While this may make an individual shine, if they have any kind of ability, it doesn't build a good team. As we grew up and played any kind of team sports we always heard the same phrase..There is no "I" in team. Same is true on the sales floor. One individual will not keep the lights on and the doors open or keep all the customers from walking out the door. Build a structured sales team, one who knows what is expected from the time they walk in to work until the time they leave. And like all team sports practice practice practice. It's not enough to train someone with just hands on experience.
Now you need a good coach. One who is motivating, one who has played the game before, one who knows how to use each individuals strength to make good plays. A coach that can build on a teams strength and not just an individuals. Getting out on the field and playing a with the team. Knowing when a substitution is needed. Take the team out on occasion, it helps build trust and understanding. A coach who sees him/herself as a part of the team.
When you build your dealership, and your the owner, the GM, or the sales manager, and someone asks you how you're succeeding or have become successful. Your response is always, "I have the best damn sales TEAM on the planet". Whether its a "boys club", "family" or "Team", there's nothing wrong with the comrodity that comes from the strength a group of individuals make when they come together, and they'll will never forget the feeling of being a part of that environment.
Google the word "Team" and wikipedia will give you this quick definition.
A team comprises a group of people linked in a common purpose. Teams are especially appropriate for conducting tasks that are high in complexity and have many interdependent subtasks.
A group in itself does not necessarily constitute a team. Teams normally have members with complementary skills and generate synergy through a coordinated effort which allows each member to maximize his or her strengths and minimize his or her weaknesses. Team members need to learn how to help one another, help other team members realize their true potential, and create an environment that allows everyone to go beyond their limitations.
That's "My Take"
Friday, April 23, 2010
Motorcycle Industry Commercial
Last night I was watching something on T.V. and a commercial came up for Eye Care. It talked about the need to see your eye doctor regularly and encouraged you to see your Eye Care Professional. Shortly after that the commercial for 1800Dentist came up, and the same thing, it discussed the need to see your dentist regularly and encouraged you to call 1800Dentist to see your Dental Care Professional. Right at that moment, it hit me. This is exactly what that Motorcycle Industry Needs. A "Prime Time" National Ad Campaign to get people thinking about Motorcycles, Off Road, Watercraft etc.
I'm not talking about the commercials you see on the speed channel, or the local/regional commercials you see when a feature is on. But regular, daily, prime time, in your face, action shots, power words and phrases that make consumers think motorcycles, and allow them to visualize themselves riding down the freeway, blazing up a sand hill, or making Motorcycles make sense to them, like "Eco Friendly" "High MPG" "Less Traffic". Something to get them to see and talk to their local dealer and encourage them to buy.
I know, national ad campaigns are not cheap. This is why it will take the commitment of every Manufacturer to form a "Motorcycle Industry Campaign". A campaign that encourages individuals who are not in touch with the industry to begin looking into the possibilities that this is a sport they can see themselves doing as well as their families doing together. Right now, the ads push to "Ride Red", "Go Green" etc, etc. These are geared to individuals who already own or have owned, and bring a sense of pride or envy to them. But, what about the people who have no idea what the difference between a Honda, Kawasaki, Yamaha, etc is. They are out of touch and therefore out of reach. Let's reach out to these people, the ones who don't already live and breath motorcycles. Let's get them to start visiting dealers and maybe bring some new life to the industry, and get some new door swings into dealerships around the country.
Oh, the ideas just keep flowing. I'm sure you are even thinking of some good commercials that get you visualizing yourself riding right now.
This is an idea that will not make its way to the "powers to be" without constant requests being made by us industry people, dealers, reps, everyone who has a stake in the industry. So if you believe it's an idea that can get some momentum, pass this blog on to someone you know or throw the idea into the next Manufacture meeting you have. Lets get the industry talking about it and see if we can get our own "Campaign" formed.
I'm not talking about the commercials you see on the speed channel, or the local/regional commercials you see when a feature is on. But regular, daily, prime time, in your face, action shots, power words and phrases that make consumers think motorcycles, and allow them to visualize themselves riding down the freeway, blazing up a sand hill, or making Motorcycles make sense to them, like "Eco Friendly" "High MPG" "Less Traffic". Something to get them to see and talk to their local dealer and encourage them to buy.
I know, national ad campaigns are not cheap. This is why it will take the commitment of every Manufacturer to form a "Motorcycle Industry Campaign". A campaign that encourages individuals who are not in touch with the industry to begin looking into the possibilities that this is a sport they can see themselves doing as well as their families doing together. Right now, the ads push to "Ride Red", "Go Green" etc, etc. These are geared to individuals who already own or have owned, and bring a sense of pride or envy to them. But, what about the people who have no idea what the difference between a Honda, Kawasaki, Yamaha, etc is. They are out of touch and therefore out of reach. Let's reach out to these people, the ones who don't already live and breath motorcycles. Let's get them to start visiting dealers and maybe bring some new life to the industry, and get some new door swings into dealerships around the country.
Oh, the ideas just keep flowing. I'm sure you are even thinking of some good commercials that get you visualizing yourself riding right now.
This is an idea that will not make its way to the "powers to be" without constant requests being made by us industry people, dealers, reps, everyone who has a stake in the industry. So if you believe it's an idea that can get some momentum, pass this blog on to someone you know or throw the idea into the next Manufacture meeting you have. Lets get the industry talking about it and see if we can get our own "Campaign" formed.
Friday, March 26, 2010
Office Staff
I can't help but wonder if most dealers are going through the same "power" struggle between the office staff and the sales staff. In my sales career, having experience with more then one dealership, I have noticed the same struggle being played out, and I wonder if the dealer principals really notice. Let me give you "My Take" on how the sales staff sees the struggle between the office and sales department.
In the retail world, there are simply two types of employees. One who works face to face with customers and one who doesn't. With some of the office employees I've worked with, they are rightfully in their position because, quite frankly, they shouldn't talk to customers. They just don't have the right personality to talk to fellow "human beings" let alone customers. I'm not quite sure why they believe the sales staff is much more inferior then them. I have my theories and most of them play a small part, but I also believe that if my job was as repetitive as theirs day in and day out, there would be a lot of little things that would get on my nerves too.
One reason there are little things that, "send them over the wall" as I've been told, is the daily connection with the dealer principal or owner, who will turn to these individuals and constantly ask the "what, where, when, and why". In turn, these individuals will ask the sales staff the same questions and add "who and how". The sales staff will give their explanation or details on how something took place and then the connection is lost, the blame game starts. Instead of working together, and discussing the "what, where, when, and why" it becomes a battle.
The inability to communicate between the two types of employees is due largely because the office staff rarely has the satisfaction of overcoming objections, rejections, and obstacles that the sales staff deals with in nearly every interaction with customers. It makes the little things that are forgotten in a deal very trivial, and makes the person complaining about the little things missed, seem very unappreciative. "Things should have been done this way and they were not, or they should have been done that way and it was not" now you've added some anomaly to their black and white day and it causes pandemonium in there simple yet repetitive day. I've seen chaos caused because of simple things like a missing drivers license number in its appropriate box, or a phone number missing a digit on an application or worse yet a deal that had yesterdays date instead of today's.
To be fair, I know the jobs of the office staff is not simple. I know this because I don't want to do them. I know the importance of the office staff and I show appreciation through respect to those individuals. I appreciate the fact that the office staff will dot our "I's" and cross our "T's" when we forget to, and fill in the blanks and do all the other stuff they were hired to do. That in its self makes it that much easier for the sales department to do their job, which is SELL! Let's all remember that in your retail store, if you're not selling your not making a payroll, and a payroll includes everyone from the shop porter to the owner, which includes the office staff somewhere in the middle. To treat the front line workers as inferior and with a lack of respect only places more animosity towards the office staff.
This may not be true at your dealership, the person or people you have working the office has people skills, and you never have had any issues with them. If this is the case, be very thankful. Appreciation for each others roll in the dealership goes a long way. More often then not, issues will get resolved. Tensions will dissipate, and things will get back to normal. But time and time again someone will have a bad day, something will be missed, and someone will have to fix it. Working together in this economy is paramount, and that's what it's going to take to ensure that everyone gets paid on payday, and your dealership survives to see the next one.
I've said it before and I'll say it again. The most important roll in a dealership is the salesperson. Whether it's in the showroom, parts department, service department or accessories, they help in the customers decision to make a purchase that day and in the future. Without customers purchasing your goods or services in your "retail" store, there wouldn't be an office staff.
With that said, April 21st is "Administrative Professionals Day". Make sure you show your appreciation for all that they do and treat them to something nice.
That's "My Take"
In the retail world, there are simply two types of employees. One who works face to face with customers and one who doesn't. With some of the office employees I've worked with, they are rightfully in their position because, quite frankly, they shouldn't talk to customers. They just don't have the right personality to talk to fellow "human beings" let alone customers. I'm not quite sure why they believe the sales staff is much more inferior then them. I have my theories and most of them play a small part, but I also believe that if my job was as repetitive as theirs day in and day out, there would be a lot of little things that would get on my nerves too.
One reason there are little things that, "send them over the wall" as I've been told, is the daily connection with the dealer principal or owner, who will turn to these individuals and constantly ask the "what, where, when, and why". In turn, these individuals will ask the sales staff the same questions and add "who and how". The sales staff will give their explanation or details on how something took place and then the connection is lost, the blame game starts. Instead of working together, and discussing the "what, where, when, and why" it becomes a battle.
The inability to communicate between the two types of employees is due largely because the office staff rarely has the satisfaction of overcoming objections, rejections, and obstacles that the sales staff deals with in nearly every interaction with customers. It makes the little things that are forgotten in a deal very trivial, and makes the person complaining about the little things missed, seem very unappreciative. "Things should have been done this way and they were not, or they should have been done that way and it was not" now you've added some anomaly to their black and white day and it causes pandemonium in there simple yet repetitive day. I've seen chaos caused because of simple things like a missing drivers license number in its appropriate box, or a phone number missing a digit on an application or worse yet a deal that had yesterdays date instead of today's.
To be fair, I know the jobs of the office staff is not simple. I know this because I don't want to do them. I know the importance of the office staff and I show appreciation through respect to those individuals. I appreciate the fact that the office staff will dot our "I's" and cross our "T's" when we forget to, and fill in the blanks and do all the other stuff they were hired to do. That in its self makes it that much easier for the sales department to do their job, which is SELL! Let's all remember that in your retail store, if you're not selling your not making a payroll, and a payroll includes everyone from the shop porter to the owner, which includes the office staff somewhere in the middle. To treat the front line workers as inferior and with a lack of respect only places more animosity towards the office staff.
This may not be true at your dealership, the person or people you have working the office has people skills, and you never have had any issues with them. If this is the case, be very thankful. Appreciation for each others roll in the dealership goes a long way. More often then not, issues will get resolved. Tensions will dissipate, and things will get back to normal. But time and time again someone will have a bad day, something will be missed, and someone will have to fix it. Working together in this economy is paramount, and that's what it's going to take to ensure that everyone gets paid on payday, and your dealership survives to see the next one.
I've said it before and I'll say it again. The most important roll in a dealership is the salesperson. Whether it's in the showroom, parts department, service department or accessories, they help in the customers decision to make a purchase that day and in the future. Without customers purchasing your goods or services in your "retail" store, there wouldn't be an office staff.
With that said, April 21st is "Administrative Professionals Day". Make sure you show your appreciation for all that they do and treat them to something nice.
That's "My Take"
Friday, March 5, 2010
What Makes A Good "Desk Manager"
Let me start by giving you my definition. The "Desk Manager" is a role we play as Sales Managers, or Dealer Principals. Whose objective is to maximize deal profitability and secure customer commitment. Now assuming every dealership uses this key role, let me give you "My Take" on what makes a good Desk Manager.
Back in the day the Desk Manager could live off a simple formula. In fact I still hear it used today. "Tight, Tight, Loose, Tight" meaning a salesman brings you an offer and your first two pencils are "Tight" if it gets to the third pencil it's "Loose" and your final pencil is "Tight" once again. Using this formula, to come to a deal, with the customer, usually results in higher profit potential and a customer satisfied with his/her negotiations in the end. While this formula can still produce the wanted results, today's customers are much more educated and the competition much more educating. More often then not, a customer already has the "out the door" price, from the weak dealership, in the nearby county or city who couldn't close a paper bag, let alone a deal. As well as the ever growing online shopper who may have an out the door price from some place he has no intention of buying from.
- A good desk manager trains the salesperson with every deal brought to the desk. A salesperson works better when they have an understanding of what takes place when the deal is brought to the desk. There is no good replacement for hands on training.
- A good desk manager connects with the salesperson and has a mutual understanding on how the deal is presented to the desk and, in turn, presented back to the customer.
- A good desk manager requires all deals have the basics covered (complete write up, complete credit application, two forms of identification, etc.) from the sales person. No exceptions, No shortcuts.
- A good desk manager has the salesperson give a "temperature" check (ex..in a hurry, irritated, been shopping all day, un-enthused, enthusiastic..etc) on customers, to the desk manager.
- A good desk manager takes into consideration several factors, including inventory, customers ability to buy, financing options, customer expectations, customer commitment, and the SALESPERSON'S ability to make it happen. There is nothing worse then to cover all the basics, and "desk" a deal, only to have it all fall apart during the closing step.
- A good desk manager should be "Black and White"...meaning, the desked deal should be understood by the customer, the salesperson, and the finance person...as simple to understand as black and white.
- A good desk manager should know all finance and manufacture promotions.
The most important thing a good desk manager should know. What makes a "Good" desk manager, is having the "Best" salespeople.
This is why it is important to train the salesperson with every deal that comes into your desk. Discuss what went wrong and what went right. Have a solid "basic's" foundation, and don't deter from it. Have strong communication skills or understanding with your salesperson. Have faith in your salesperson's ability, and be good enough that your salespeople have faith in your ability to desk out a deal.
Now, this blog could have been titled "...Sales Manager" or "...Finance Manager" or "What makes a good Dealership" and the final answer would always be the same from me....SALESPEOPLE. But, I received an email from a follower that asked me what "My Take" is on desk managers, and I replied with "...read my next blog..." Bottom line is, the salesperson can make or break a customers decision to purchase from your dealership. Which in turn, affects your bottomline. So, no matter what role you take at your dealership, desk manager, sales manager, finance manager, owner or all the above, train your salespeople to be the best. If you have the best salespeople, that will make you good.
That's "My Take"
Back in the day the Desk Manager could live off a simple formula. In fact I still hear it used today. "Tight, Tight, Loose, Tight" meaning a salesman brings you an offer and your first two pencils are "Tight" if it gets to the third pencil it's "Loose" and your final pencil is "Tight" once again. Using this formula, to come to a deal, with the customer, usually results in higher profit potential and a customer satisfied with his/her negotiations in the end. While this formula can still produce the wanted results, today's customers are much more educated and the competition much more educating. More often then not, a customer already has the "out the door" price, from the weak dealership, in the nearby county or city who couldn't close a paper bag, let alone a deal. As well as the ever growing online shopper who may have an out the door price from some place he has no intention of buying from.
- A good desk manager trains the salesperson with every deal brought to the desk. A salesperson works better when they have an understanding of what takes place when the deal is brought to the desk. There is no good replacement for hands on training.
- A good desk manager connects with the salesperson and has a mutual understanding on how the deal is presented to the desk and, in turn, presented back to the customer.
- A good desk manager requires all deals have the basics covered (complete write up, complete credit application, two forms of identification, etc.) from the sales person. No exceptions, No shortcuts.
- A good desk manager has the salesperson give a "temperature" check (ex..in a hurry, irritated, been shopping all day, un-enthused, enthusiastic..etc) on customers, to the desk manager.
- A good desk manager takes into consideration several factors, including inventory, customers ability to buy, financing options, customer expectations, customer commitment, and the SALESPERSON'S ability to make it happen. There is nothing worse then to cover all the basics, and "desk" a deal, only to have it all fall apart during the closing step.
- A good desk manager should be "Black and White"...meaning, the desked deal should be understood by the customer, the salesperson, and the finance person...as simple to understand as black and white.
- A good desk manager should know all finance and manufacture promotions.
The most important thing a good desk manager should know. What makes a "Good" desk manager, is having the "Best" salespeople.
This is why it is important to train the salesperson with every deal that comes into your desk. Discuss what went wrong and what went right. Have a solid "basic's" foundation, and don't deter from it. Have strong communication skills or understanding with your salesperson. Have faith in your salesperson's ability, and be good enough that your salespeople have faith in your ability to desk out a deal.
Now, this blog could have been titled "...Sales Manager" or "...Finance Manager" or "What makes a good Dealership" and the final answer would always be the same from me....SALESPEOPLE. But, I received an email from a follower that asked me what "My Take" is on desk managers, and I replied with "...read my next blog..." Bottom line is, the salesperson can make or break a customers decision to purchase from your dealership. Which in turn, affects your bottomline. So, no matter what role you take at your dealership, desk manager, sales manager, finance manager, owner or all the above, train your salespeople to be the best. If you have the best salespeople, that will make you good.
That's "My Take"
Monday, March 1, 2010
Menu Selling (K.I.S.S.)
It has been at least 10 years since I sat behind a finance desk and called myself a finance manager. Through out those 10 years I've held monthly meetings with my finance staff on what was expected, and what was new. I remember on several occasions discussing the use of a "Menu Selling System", only to be told at the next meeting the several reasons of why it doesn't work. I recall discussions on finding a way to get the 300% rule in place, whether it was using the menu or not, we needed to find a way to get 100% of the product, in front of 100% of the customers, 100% of the time. I sat through several online meetings with a couple of different menu selling companies, trying to derive at a system that works with the Power Sports business.
The Menu Selling companies, chose the dealership I was working at, at the time, because we were a high volume dealership. Not your typical 200 unit a month "high volume" dealer, but at our best, we did over 200 units in one day. Our best month was over 1400 units sold. For a few years we had an 800 unit per month average. There was no one more qualified to try a menu selling program for the Power Sports business then this dealership. However, the biggest reason (excuse) the menu selling did not work was because we were high volume and there was not enough time to double input customers information and figure out different formulas for the customer to choose. That was still no excuse for not getting 100% of the back end products available, in front of the customer. There was a great deal of back end profits lost by not having a system in place.
In my defense, my compensation had no bearing on how successful or unsuccessful back end products were sold. Which was partially my fault for not negotiating and the dealer principals fault for not recognizing the potential. Nonetheless, the finance department was the responsibility of the Sales Managers and the success or failure of the department, rest with us.
Now fast forward a couple years, in a new dealership, instead of managing the F&I department, I am the F&I department and, in getting hired on, I stated I would find a way to make the menu system work. Find a way to get 100% of the products available, to 100% of the customer, 100% of the time. Here's some of the reasons I heard, in previous meetings, on why it wouldn't work:
Customers have exhausted their time and efforts in negotiating the (front end) deal and don't want to hear what is available to them (back end).
Customers are always in a hurry. It doesn't matter if they have no place better to be, once confined into an office to sign paperwork or just the thought that they have to get into an office to sign, puts the customer in "hurry up" mode. They stop listening before you even start.
Customers are far more educated these days, with the Internet, on the spot news articles, word of mouth, and the experience of previous purchases. Customers know what they want and don't want.
So, being faced with customers who had no money, or time, and over (or under) educated about back end products, I needed to come up with a way to get the products in front of the customer regardless. One of my favorite reminders to salesmen who made things too hard on themselves and the dealership, was K.I.S.S. or Keep It Simple Stupid. So I came up with my own "menu" and instead of emphasizing the price or the payment, I put everything available on the menu. I used key words and phrasing and no more then four bullets to emphasize the features. (ex. Warranty = Mechanical Breakdown Coverage...Gap = Total Loss Protection, and bullets like Nationwide Coverage, Unlimited Mileage...Pays Deductible, Pays Deficiency..etc) and I represent this "Menu" as an "Accountability Sheet" which makes me accountable to you, the customer, and my boss (the dealership) that all available protection is being offered at the time of the sale.
So far, I have had a number of customers, who not only listen intently, but open up to the idea that maybe there is more to these back end products then just a "way for dealerships to make more money." There is much more to my "Accountability Sheet" and a simple, yet effective approach to presentation, and I get 100% of products, to 100% of the customers, 100% of the time. That's Keeping It Simple Stupid.
I'm still finding ways to perfect my presentation, and I learn something new with every customer. I would be very interested to hear from other Power Sports dealers on their approach to the "Menu System" do they have one? Does it work? Are the Customers Responsive (Positive)? Are you interested in my "Accountability Sheet"?
SIDE NOTE: This past weekend was the busiest we've had this year. All day, deals were stacked one after the other, using various finance companies, mixed with "in a hurry" cash customers. This sheet was presented with 100% of the deals and the outcome was a 70% close ratio with, not just warranties, but insurance, gap, and Lo Jack as well.
I've worked with, heard of, and experienced my share of "F&I Managers", and most can be categorized in either a "Hard Sale", or a "Soft Sale" approach to back end sales. I would generally categorize my self as a "Soft Sale". This sheet helps step up the soft sale and ensuring that the products are being introduced. From my experience the hard sale approach leads to unhappy customers, more cancellations, less repeat business.
That's "My Take", what's yours?
The Menu Selling companies, chose the dealership I was working at, at the time, because we were a high volume dealership. Not your typical 200 unit a month "high volume" dealer, but at our best, we did over 200 units in one day. Our best month was over 1400 units sold. For a few years we had an 800 unit per month average. There was no one more qualified to try a menu selling program for the Power Sports business then this dealership. However, the biggest reason (excuse) the menu selling did not work was because we were high volume and there was not enough time to double input customers information and figure out different formulas for the customer to choose. That was still no excuse for not getting 100% of the back end products available, in front of the customer. There was a great deal of back end profits lost by not having a system in place.
In my defense, my compensation had no bearing on how successful or unsuccessful back end products were sold. Which was partially my fault for not negotiating and the dealer principals fault for not recognizing the potential. Nonetheless, the finance department was the responsibility of the Sales Managers and the success or failure of the department, rest with us.
Now fast forward a couple years, in a new dealership, instead of managing the F&I department, I am the F&I department and, in getting hired on, I stated I would find a way to make the menu system work. Find a way to get 100% of the products available, to 100% of the customer, 100% of the time. Here's some of the reasons I heard, in previous meetings, on why it wouldn't work:
Customers have exhausted their time and efforts in negotiating the (front end) deal and don't want to hear what is available to them (back end).
Customers are always in a hurry. It doesn't matter if they have no place better to be, once confined into an office to sign paperwork or just the thought that they have to get into an office to sign, puts the customer in "hurry up" mode. They stop listening before you even start.
Customers are far more educated these days, with the Internet, on the spot news articles, word of mouth, and the experience of previous purchases. Customers know what they want and don't want.
So, being faced with customers who had no money, or time, and over (or under) educated about back end products, I needed to come up with a way to get the products in front of the customer regardless. One of my favorite reminders to salesmen who made things too hard on themselves and the dealership, was K.I.S.S. or Keep It Simple Stupid. So I came up with my own "menu" and instead of emphasizing the price or the payment, I put everything available on the menu. I used key words and phrasing and no more then four bullets to emphasize the features. (ex. Warranty = Mechanical Breakdown Coverage...Gap = Total Loss Protection, and bullets like Nationwide Coverage, Unlimited Mileage...Pays Deductible, Pays Deficiency..etc) and I represent this "Menu" as an "Accountability Sheet" which makes me accountable to you, the customer, and my boss (the dealership) that all available protection is being offered at the time of the sale.
So far, I have had a number of customers, who not only listen intently, but open up to the idea that maybe there is more to these back end products then just a "way for dealerships to make more money." There is much more to my "Accountability Sheet" and a simple, yet effective approach to presentation, and I get 100% of products, to 100% of the customers, 100% of the time. That's Keeping It Simple Stupid.
I'm still finding ways to perfect my presentation, and I learn something new with every customer. I would be very interested to hear from other Power Sports dealers on their approach to the "Menu System" do they have one? Does it work? Are the Customers Responsive (Positive)? Are you interested in my "Accountability Sheet"?
SIDE NOTE: This past weekend was the busiest we've had this year. All day, deals were stacked one after the other, using various finance companies, mixed with "in a hurry" cash customers. This sheet was presented with 100% of the deals and the outcome was a 70% close ratio with, not just warranties, but insurance, gap, and Lo Jack as well.
I've worked with, heard of, and experienced my share of "F&I Managers", and most can be categorized in either a "Hard Sale", or a "Soft Sale" approach to back end sales. I would generally categorize my self as a "Soft Sale". This sheet helps step up the soft sale and ensuring that the products are being introduced. From my experience the hard sale approach leads to unhappy customers, more cancellations, less repeat business.
That's "My Take", what's yours?
Monday, February 22, 2010
Monday Morning Turndowns
OK, it's Monday Morning. I have no less then 12 applications in front of me that need to be, either, reworked or submitted to a high risk lender. All 12 applications are "buyers" that, "if qualify", will buy. One applicant wants to buy two units and keep his payments under $200 a month. The others, well, want to buy, has down payments to make it happen and are eager and ready to pick up their units as soon as they are approved. So after a dismal weekend, I have 13 total units ready to roll. Sounds like a great Monday Morning.
Here we are 2 1/2 hours into the morning and I have just received my final turn down. 13 units, down to 0. Not completely unusual, we've all seen it before, and with today's credit history, it won't be the last time we'll see Monday's like this. Last blog I discussed the need to get back on a personal level with our lenders, work on getting customers to come up with a down payment, and re-educating our customers. Going into the week after that blog, I did just that. I approached every customer with the understanding that there is a want to buy, but the hesitation may be an unwillingness to discuss their bad credit. After following all the steps of the sale I overcame the hesitation and the result was 12 applications of bad credit.
Now, whats my point. As I wrote the first two paragrahs of this blog I stopped and and asked my self the same thing. "What is my Point". After reading it over I realized that I was venting my frustrations, and it worked, I'm no longer frustrated. The point here is not that my efforts were stopped short of a sale, because I couldn't get any approvals, but the fact that there are customers walking through the door, eager and ready to buy, and with the comprehension that the days of $39 a month payments, 0 money out of pocket, are a thing of the past. Re-educating customers is going to be a long process it's definetly not going to happen overnight. It will probably take as long as it takes for the customers to start rebuilding their credit well enough to start buying again. It's something we shouldn't lose focus on. Re-educating the lenders probably won't take as long, but without applicants like these they won't know there are buyers out there, and dealers working hard to try and make it happen.
Here we are 2 1/2 hours into the morning and I have just received my final turn down. 13 units, down to 0. Not completely unusual, we've all seen it before, and with today's credit history, it won't be the last time we'll see Monday's like this. Last blog I discussed the need to get back on a personal level with our lenders, work on getting customers to come up with a down payment, and re-educating our customers. Going into the week after that blog, I did just that. I approached every customer with the understanding that there is a want to buy, but the hesitation may be an unwillingness to discuss their bad credit. After following all the steps of the sale I overcame the hesitation and the result was 12 applications of bad credit.
Now, whats my point. As I wrote the first two paragrahs of this blog I stopped and and asked my self the same thing. "What is my Point". After reading it over I realized that I was venting my frustrations, and it worked, I'm no longer frustrated. The point here is not that my efforts were stopped short of a sale, because I couldn't get any approvals, but the fact that there are customers walking through the door, eager and ready to buy, and with the comprehension that the days of $39 a month payments, 0 money out of pocket, are a thing of the past. Re-educating customers is going to be a long process it's definetly not going to happen overnight. It will probably take as long as it takes for the customers to start rebuilding their credit well enough to start buying again. It's something we shouldn't lose focus on. Re-educating the lenders probably won't take as long, but without applicants like these they won't know there are buyers out there, and dealers working hard to try and make it happen.
Saturday, February 13, 2010
Powersports Financing
I've heard it all from owners, salesmen, consumers, and consumer wannabes on "if the lender would just buy more we would sell (buy) more". While this statement is true, it usually insinuates that the finance company has turn down someone who should have been approved.
It's my experience, as of late, that these finance companies want to lend to consumers and allow dealers to "sell more" but they don't want (or can't) fall into the same mistakes made in years past. For example, in years past we would have an 18 year old kid come in with 2 pieces of credit with a $1000 high line and less then 1 year on the bureau but a score over 700. Well certain lending companies, in less then 2 mins, would approve this kid with a $15K credit line and we could send him on his way with a new machine or 2 in less then an hour.
In the beginning, we would joke on how ridiculously lucky we just got and that we need take advantage of this approval, give him what he wants and tell him how ridiculously lucky he just got and make sure you make your payments on time and don't mess this up etc, etc. Then it became such commonplace in this business that every one with a heartbeat and a score over 580 was going to get approved for something. We stopped telling people that we just got a gift of an approval and we stopped telling them to make sure you make your payments etc, etc.
If you are one of the unlucky people who just got in this powersports business in the last 5 years, you're one who believed that customers were never ending and approvals are second nature. If you've been in this business longer then that, like me, you got so use to stuffing your wallet with money and lost sight of the gifts of approvals we were getting. We even led consumers to believe that approvals were no problem, just fill out this application and we'll have you in the office signing paperwork in just a few minutes.
I don't know, entirely, how the inner workings of a finance company operates, but I do know some decision making people made some wrong decisions by allowing these types of gifts to continue. Now, in order to survive today and in the future, these finance companies have to make right decisions, and that includes turning down someone who should be turned down. Looking harder at applications that score alone can't define.
Now this doesn't mean, giving in to the finance company and allow there decision to be final. Let's get back to the basics, understand the credit bureau of our customers. Find if we must a middle ground with the lender, and start working the consumer more for down payments, proof of income etc, etc. Use what we know to be true and start building that relationship up with lenders again like we did in the past. Lenders want to lend, they want to lend to consumers who can prove they can pay, they want to lend to dealers who are looking out for the best interest of the consumer, dealer, and lender.
That's My Take!
Lenders used (AHFC, HSBC, GE (Funancing), Sheffield, MB, BMW, YDS, and countless others that either don't finance powersports any longer or have gone by the way side)
It's my experience, as of late, that these finance companies want to lend to consumers and allow dealers to "sell more" but they don't want (or can't) fall into the same mistakes made in years past. For example, in years past we would have an 18 year old kid come in with 2 pieces of credit with a $1000 high line and less then 1 year on the bureau but a score over 700. Well certain lending companies, in less then 2 mins, would approve this kid with a $15K credit line and we could send him on his way with a new machine or 2 in less then an hour.
In the beginning, we would joke on how ridiculously lucky we just got and that we need take advantage of this approval, give him what he wants and tell him how ridiculously lucky he just got and make sure you make your payments on time and don't mess this up etc, etc. Then it became such commonplace in this business that every one with a heartbeat and a score over 580 was going to get approved for something. We stopped telling people that we just got a gift of an approval and we stopped telling them to make sure you make your payments etc, etc.
If you are one of the unlucky people who just got in this powersports business in the last 5 years, you're one who believed that customers were never ending and approvals are second nature. If you've been in this business longer then that, like me, you got so use to stuffing your wallet with money and lost sight of the gifts of approvals we were getting. We even led consumers to believe that approvals were no problem, just fill out this application and we'll have you in the office signing paperwork in just a few minutes.
I don't know, entirely, how the inner workings of a finance company operates, but I do know some decision making people made some wrong decisions by allowing these types of gifts to continue. Now, in order to survive today and in the future, these finance companies have to make right decisions, and that includes turning down someone who should be turned down. Looking harder at applications that score alone can't define.
Now this doesn't mean, giving in to the finance company and allow there decision to be final. Let's get back to the basics, understand the credit bureau of our customers. Find if we must a middle ground with the lender, and start working the consumer more for down payments, proof of income etc, etc. Use what we know to be true and start building that relationship up with lenders again like we did in the past. Lenders want to lend, they want to lend to consumers who can prove they can pay, they want to lend to dealers who are looking out for the best interest of the consumer, dealer, and lender.
That's My Take!
Lenders used (AHFC, HSBC, GE (Funancing), Sheffield, MB, BMW, YDS, and countless others that either don't finance powersports any longer or have gone by the way side)
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