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.
Monday, October 18, 2010
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.
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