FOR IMMEDIATE RELEASE 

For More Information contact Don Reed

at dreed@dealerprotraining.com or call 1-888-553-0100

NEW TRAINING NETWORK HELPS DEALERS

ACHIEVE 100% SERVICE ABSORPTION 

GAHANNA, OH—Don Reed, nationally known expert on service absorption, announces The Don Reed PRO Training Network, which will provide a market basket of products and services to help automobile dealers achieve 100% service absorption. 

“Dealers know they can do a better service job … and they really want to,” says Mr. Reed. “They just don’t know how. That’s why we’ve put together a whole range of training programs for Dealers, GMs, Service Managers and Service Advisors.” 

“We can provide in-dealership training, online training, workshops, sales tools and a combination of services. Each program is tailored to the dealer’s specific needs,” says Don. 

“Our approach is vastly different from traditional trainers or consultants,” he says. “For example, our PRO Performance 20 Groups use industry standard NCM composites, but instead of just identifying problems, we’ll roll up our sleeves and help dealers solve them and achieve their true potential.” 

“And,” continues Don, “we even offer customer training. Our service sales tool, PRO SMART Menu, presents customers with every service item required at each specific interval. Recommended and premium items are also automatically shown with pricing so customers can choose the level of service they want.” 

The result: Customers become more aware of their vehicles’ service requirements … and dealers sell more services. “When you give customers the power to choose, they buy more,” says Don.

Every product and service provided by The Don Reed PRO Training Network helps dealers improve their service sales performance. But the crown jewel in the Network is the $200K Club. 

The $200K Club program guarantees that a dealership will increase its Service Gross Profits by at least $200,000. The program consists of these elements … 

1. Profit Improvement Plan built from the dealership’s financials, so it is real
2. One-week in-dealership installation and training
3. Monthly in-dealership monitoring and coaching: 2 to 3 days a month
4. 24/7 Online PRO Training available for all Service Managers and Advisors for 13 months.
5. Management tools and reports 

“Several dealers really blow the doors off the program,” says Don. For example, Snell Motors generated more than $800,000 added Service Gross Profits during the 13-month program.  “We’ve had several other dealers make more than $500,000 in added Service Gross Profits,” says Don.  

For more information on how The Don Reed PRO Training Network can help your dealership achieve 100% Service Absorption, call Don Reed at 1-888-553-0100 or email Don at dreed@dealerprotraining.com

English: Corporate Magician Danny Orleans — Portrait (Photo credit: Wikipedia)

Get your personalized Profit Improvement Plan at booth #266 in Orlando! DealerPro Training Solutions will be at the NADA booth #266! Come by and meet Don Reed,CEO of DealerPro Training Solutions. He is an industry recognized expert in Fixed Operations, Profit Building and Dealership Operations.

Make sure you get your free Profit Improvement Plan at this years NADA Convention. It’s an opportunity you don’t want to miss!

And we have Danny Orleans Corporate Magician in the booth all day Saturday February 9th and from 9-1:30 Sunday February 10th! Get some Magic!

Every year about this time we begin to contemplate. What was our final score for 2012? How did we end up? Did we just SURVIVE or did we THRIVE?

For most of you, that reality was written months ago and on the 10^th of January you’ll be reading the results you already suspect.

You may even be feeling some anticipation (much like a kid on Christmas morning).

For those of you who spent more time on the “naughty side of retail life” you are hoping for a miracle to turn poor effort and lack of accountability into a Kodak perfect picture moment when you open your present (EOY Financial)…only get ready for the stinky picture…the one with the sad tear-streaked face when you finally tear open your package of coal.

And for the rest of you…”Smile!” click…click…click post it to FB ‘cause you got a HappyFace!

So, the real question is, did you THRIVE in O12 or did you just SURVIVE O12?

Here are 3 Thrive/Survive Reality Checks for you to contemplate right now.

Did you have a significant increase in Service Customer Pay Gross Profit? Let’s define significant. Was your increase at least 20% or more? Before I get a slew of “Hey, we got ___(fill in the blank) and it was significant to us” emails, you have realize that any organization that experiences an increase in Gross Profit, whether they are selling soup or nuts, that is greater than the year before would consider it “significant”, “fantastic”, “beyond expectations”…you get the point.

It just so happens that 20% is considered significant and noteworthy (and all that other stuff) because most of the business world runs on extremely small margins and mucho dinero is made every day in this  country by people smarter than me betting on the tiniest increase and decrease in those margins.

Imagine what a day at the stock market would look like if the Fortune 500 companies all reported a 20% increase in Gross Profits. Wow.

So, yes, 8, 10, even 18% is a nice number when it comes to a Gross Profit increase. But 20% and above is pretty damn significant.

Those dealerships that are thriving…INCREASE! Those that are surviving…SAME! So, I have to ask the question, did you start 2012 with the Goal of staying the SAME or did you want an INCREASE in Service Customer Pay Gross Profit?

Next Thrive/Survive Reality Check is your Service Customer Pay RO Count. In 2012, did you INCREASE your Customer Pay RO Count or did it just stay the SAME?

2012 will be a pretty good Sales year when all the numbers are tallied. Last I read, total sold units in 2012 will be somewhere north of 14 million and represents an overall increase of nearly 14%. 2011 was not all that bad (relatively speaking and compared to previous years) when it hit over 11 and a half million units sold. So, that would indicate that based on these numbers, there are additional Service Customers in the marketplace looking for a Service Facility.

Which begs the question, where did all of the Customers from 2011 and the first 6 months of 2012 go for Service? Was it your Dealership? If not, why not? What is keeping the Customer you worked so hard to sell from coming into your Service Drive for Service?

In every Dealer that we complete a Profit Potential Analysis and review the previous 2 years of RO Counts, I can honestly say that in my experience, there is always room for growth. In fact, I do not believe I have heard any Dealer Principal say “No thanks to increasing the Customer Pay RO Count in our store, we have enough.”

So if you have not had at least a 10% INCREASE in Customer Pay RO Count in 2012, that would be an excellent place to begin your Goal Setting Process for 2013.

Lastly, have you had an INCREASE in CSI or stayed the SAME? Honestly, the CSI Score is without a doubt, the craziest number ever to have been invented to measure a Dealerships performance. Sometimes it can feel like you are trying to hit a mouse in a hurricane with a beach ball.

And many Dealerships consider it a Success just to maintain “Zone Average.” I get it. But the Dealerships that are THRIVING have invested themselves into a new thought process when it comes to CSI…changing the “gottadoit” to the “wantadoit” and the P-step Program “Process,Participation,Prevention” and making a difference in their CSI Score.

SURVIVING means every week/month when the new scores come out, the Service Manager and General Manager have a moment referred to as “Show-me-the-money-or-get-out-the-honey.” Either you hit the numbers or you start spreadin’ the honey. It can be fun in a kinda “You bet your job” sorta way, I guess.

Take a minute on the morning of Jan 10^th to consider and ponder and contemplate 2012. Look for other areas you consider vital and important to your business, your Dealership. And take a look at the three areas we just talked about, Service Gross Profit, Customer Pay RO Count and CSI.

As the zero one three business year kicks off in your store and you are starting to write your Goals are you thinking of SURVIVING or THRIVING?

My best guess is you have started to consider THRIVING the year away. 

Customer services (Photo credit: gordon2208)

You can have perks, loyalty programs, free coffee, wifi, marble covered floors and chandeliers…and none of that makes a difference if you fail to take care of your most valuable asset…the Customer.

To be clear, I am not saying that Customers do not want perks. We all do. CRM companies sprang to life and have done very well since the industry recognized the need to stay in touch and recapture Lost Souls and Lost Sales.

Loyalty and Rewards programs have filled the gap between “have a seat and a cup of coffee” to “for every visit you’ll get_____ and _______.” Customers get it.

The reason we have seen a defection of Customers (even though there are Factory Sponsored Free Maintenance Programs) is the People they do Business with coupled with the Professionalism in How they Deliver said Service.

You can’t train Friendliness or Caring.

Here is the proof. When was the last time you went somewhere…say a local dry cleaners or a restaurant…and were treated poorly…maybe you weren’t greeted properly…or the clerk or waiter didn’t smile, answered all of your questions with grunts, one word answers and frowns…all the while staring at the computer screen or order pad…and then said to you “Come back and see us again. We have a rewards program…here is a brochure.”
That brochure hit the round file the second you had a chance to do so and for good reason. There is no way (EVER) you would go back there.
Things do not a good Service Experience make!
People do make the Service Experience!

By Leonard Buchholz

Trained Advisors Make More Sales!

Advisors who have been trained and coached are the best people to contact those customers, Advisors who are trained, coached and who care are better.

Take John Q. here. He is an excellent example. He has been working at ABC Motors for 7 years. He has an average close ratio at 28%. So, 3 times out of ten, he is able to make the sale on additional recommendations from the Technicians. 7 of his customers have decided to “wait” or “I’ll get it next time” or “I have to talk to my ______” or another of the many excuses we hear every day.

John Q. sometimes calls them back in a day or two or sometimes sends them an email. Most of the time he relies on the CDR/CDM and the DMS system to follow-up with the customer and send them a reminder card or offer them a discount to come back in.

John Q. has been doing this for 7 years. That is around 5000 or so Lost Sales.

What if John was able to convert just 2 more customers per day from a Lost Sale into a RO? His sales would increase nearly 30%. Every Service Manager on the planet would like a 30% increase in sales.

John needs a couple of things. He needs a script to learn and follow until he gets good at following up with the customer and making a case for why his dealership would be a great place for Mr./Ms. Customer to have the repair work completed. He needs a process whereby he identifies and tracks all of his Lost Sales and CDR/CDM recommendations. He needs Training and Coaching on his results. And he needs to be monitored.

Now take the above example and add in the newest software/CRM system that facilitates John’s communications with the customer while explaining the reason they should have that work completed with graphics and video and “BOOM!” goes the Sales Increase!

By Leonard Buchholz

Looking for the building blocks of Service Sales so you ca build your Service Business? Go to www.dealerprotraining.com and see how you can start the construction process!

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It is an age old diametrically opposed argument. On one side, we have technology. On the other side, we have personnel.

I can’t sell anything without a great Multipoint Inspection.
I can’t sell anything without a professional Sales Process.
I must have both in order to be effective.

In recent years there has been a migration to technology because we have come to expect that our Dealerships will be modern, fully equipped Service Centers that have the best tools and equipment because that’s the image that has been built through extended advertising.

It’s also why people have come to believe that going to the Dealer is always more expensive.

What has happened (IMHO) is that technology has become a crutch to be used instead of a professional Sales process and effective person to person communication skills. And becomes the scapegoat when the technology does not produce the Sale.

If I had to choose between the two, I’ll choose the professional Sales Process and Communication Skills because our business is still a person to person elbow rubbing “Hey, how are you doing?” smile on your face take care of the Customer business.

If you have a Service Department that is staffed with people and not extraterrestrial aliens or vampires, then they can be trained to present Multipoint Inspections using a Sales Process that produces consistent results.

In fact, over the past 11 years, we have been dong this very same thing in Service Departments all across the country and have helped them produce dramatic and spectacular results…using the same technology (Electronic MPI, Electronic Menus, Electronic write up, On line Appointment Scheduling, CRM Software, you name it…)  that was already in place and did not generate the expected results because they are simply tools when it comes right down to it.

The perfect example of the difference between training and technology exists in our own collective history. Remember OBDII? What happened when “Software Download” and “Electronic Diagnostics” took over our industry? In the beginning, there was a period of time when the plug in connector was viewed as a precursor to volcanoes and the return of the dinosaurs. The end of the world!

We had to train all of our Technicians to use the new technology. When we completed that re-training, our success in diagnosing the vehicle and repairing it the first time increased dramatically. (Which coincidentally has lead to a considerable decrease in warranty repair work.)

But there was still the Customer.

Why didn’t all of this new technology which made concerns easier to diagnose, lead to a decrease in defects per sold unit and increase the reliability (to name a few of the benefits), lead to an automatic increase in CSI, increased retention and more maintenance visits at the Dealership?

Because you can’t train a computer to smile, ask how you are doing, make a friend, build a relationship, remember their preferences, make recommendations based on priorities, remember that they are always your Customer and not a problem to be dealt with and lastly, you can’t teach a computer or build a software application that has Pride and Professionalism.

That is why you still need a smiling, professional Service Advisor.

Hey, you can keep paying those monthly fees for “stuff that don’t work” or give us a call. It’s up to you.

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The good news: They are all Preventable! Read below for the latest in how you can prevent Lost Sales!

#1-NO INTERVIEW!

An interview is the most important part of any sales process. There are several objectives for the interview. 

• build a relationship with your customer
• establish some common ground
• build rapport
• find out their needs and wants.

The interview must be conducted in a controlled area such as the sales office. Too often the salesperson will simply escort the customer to the inventory and start their sales process (if they have one).

When this occurs, the sales person has NO idea of what the customer’s needs might be, budget, credit worthiness, who is the buyer, who is the decision maker, who will make the payments, how many seat belts will they need and a variety of other information.

Additionally, many customers will gravitate towards units that DO NOT fit their needs, budget or other factors. Usually they will put themselves on something that is substantially outside their financial capabilities.

The salesperson must bring the customer to their desk/office, sit them down and start gathering information. A decent interview should last at least 15 minutes.

               Skip this process and it will result in LOST SALES.

#2-CUSTOMER CONTROL
Every time there is a face to face encounter a sale is made. Either the customer buys into the salespersons presentation or the salesperson buys into the customer’s presentation.

The sale is made by the person in control. NO CONTROL, NO SALE.

Control is determined by the person ASKING the questions. To maintain control you, the Salesperson, must ask the questions.

You will need to anticipate the direction of the conversation, mentally think ahead to possible answers and be ready for different responses.

This is called “Thinking on your feet”. Explore every angle. Never stop asking questions.

#3-TURN TO A MANAGER Never be the person to let your customer leave the dealership. ALWAYS turn your customer to a manager.

Get a second opinion. Two heads are better than one. We’ve all heard all the reasons, so why doesn’t this get done?

Studies show that turning customers to a manager will result in an additional 5% sold units.

Now this may not sound like much. Let’s do the math. If your store has 500 UPS a month, this one deal saving technique will result in an additional 25 sales.

At $2500 per unit that amounts to $62500 in ADDITIONAL GROSS, just for getting a second OPINION!

Here then are the 3 ways you can turn a lost sale into a SOLD CUSTOMER!
Conduct a real interview, maintain customer control and always turn to a manager! Do this consistently and your organization WILL Sell More Units!

by Dugan Anderson

Sales Training Manager DealerPro Training Solutions

Need help with Sales Training? Losing Sales and looking for answers? Give Dugan a call at 406-755-2910 or send an email to dugan.anderson@gmail.com

Fierce Leadership (Sketchnotes) (Photo credit: murdocke23)

Clearly there is a huge gap between what “we” (old school) managers and Leaders consider useful and proper communication,  motivation and Leadership techniques and what the “new” generation responds to.

There is a choice to be made.
A. Keep doing what you’ve been doing and keep getting the same results while expecting a different outcome.
B. Do something different.

In this business “transitional people” are a given. We attract people because we are the largest OJT training industry on the planet. ANYBODY can work in the Car Biz because we accept everybody.

The only people we reject (and that’s not a given either) is the people who cannot pass the smog test or background check…but I can guarantee you this…nearly half if not more reading these words do neither when hiring. It’s not an accusation or condemnation…it’s just the way it is.

So, having to deal with a generation who does not respond the same way, think the same way and act the same way should be no real surprise. What is a surprise is how much “old school” wants to hold on to the familiar and safe ways of management and Leadership style rather than adapting and overcoming this communication and Leadership gap.

Do we hold them to established Dealership standards of conduct? Yes
Do we hold them accountable to established performance goals? Yes
Do we expect professional behavior while on the job? Yes
Do we monitor and coach on a regular (daily) basis? Yes

HOW we communicate those standards of behavior and professionalism is where we need to to grow. HOW we hire and train is where we need to change. HOW we grow our own pool of qualified and professional people is HOW we overcome the challenge of finding qualified people.

This generation, like any other generation, still wants to Succeed. Just not in the manner we have defined Success! Identify and qualify that definition and you will have the employee you want and an employee you can count in in the future.

Keep applying “Old School” Communication and Leadership techniques and it will be “Class Dismissed”.

And when it’s all said and done, we like to think that we have contributed to the Dealership’s future and had a hand in weaving the very fabric of that Dealership.

And in every Dealership there are some employees we label as “The Challenges”.

These people make us wonder why we became managers.

Maybe you inherited them… maybe you hired them and maybe… you managed them into the underachievers they are.

Whatever the situation, you have got to find a way to transform them from the under performing underachievers into consistent contributors to your Team.

Here are 4 of the most Challenging individuals and some strategies in guiding them through their transformation into Performing Team Members.

Before we go too far, there is one rule you must be aware of.

You can’t fix their Attitude. They own it. It belongs to them. The only way it changes is through their thinking.

What is an Attitude? Let’s define it before we move on.
I like this definition, see if you don’t agree.

An Attitude is a thought process. It is a reflection of a person’s internal reaction to their external environment.

Attitudes are influenced by emotions, actions, reactions, events and people. They can be extremely fragile or incredibly strong. And they change constantly in some people.

If you spend your time trying to change the “Attitude” instead of focusing on the “Behavior” you will die a slow death in Leadership hell smashed against the rocks of “The Unchanged Cliffs” much like a beached ship washed upon a coral reef.

Here are the 4 most common underachievers.

The Axe Grinder. This person exists in every Dealership. They are the one person that had something happen to them in their employment and they believe the Dealership or the manager had a hand in it. They are the ultimate “conspiracy theorist” when it comes to changes within the Dealership. To them, everything that has happened to them was the result of “poor management” and if they ran things everything would be perfect.

Instead of focusing on a solution, they would rather focus on telling everyone how “messed up” the Dealership or you, the manager is. They prefer to carry around their sad tale regaling coworkers from time to time with their own private philosophy and “management style.” (This is the “What I would do if” scenario)

They can become quite bitter towards the Dealership and even other co-workers if they are allowed to continue with their Axe Grinding.

The Fix. It’s a 3 step process. 1st, identify the Grinders main problem or issue. This can be extremely difficult to get to because, as with most Grinders, they usually have a list of things that are wrong. You need to focus on the items on their list that are repairable and can be addressed. Get them to acknowledge that  there are  things that will never be fixed and to put them away for good.

2nd. Ask for their help in resolving the issue(s). This is the buy in. You can’t move to step 3 without getting the Grinder to say that the solution you both agree on will take care of the issue to their satisfaction.

3rd. Describe the course of action you will take and describe the behavior that you expect from the Grinder from this point forward. Notice I did not say anything about “changing their Attitude” or “shape up.” If you want them to stop talking to everyone about everything that has ever happened then tell them that it is part of the agreement. One final thought here is that they agree to bring to your attention other problems before they get out of hand and they have a solution they believe will solve the problem.

The Agenda Maker. These folks have something to prove. They are totally focused on getting something done for themselves, quite often, at other people’s or the Dealership’s expense. They are not team players and do not have anyone’s interests in mind but themselves. In order to get what they want, they have been known to undermine other coworkers or you.

Quite often they are brilliant in what they do. Many Dealership’s rely on their performance. The numbers they produce can make or break a month or even a quarter. For many managers it becomes a matter of managing the lesser of two evils.

Every Dealership needs performance, and yet every Dealership requires cooperation and harmony to excel. Your internal battle is “For performance and numbers, do I allow this person to run roughshod over my department? Treat other workers poorly? Maybe even become arrogant to the point of openly defying management?”

The Fix. This includes identifying the behavior and setting some boundaries for this individual. By letting them know that you do not nor will you allow them to set the pace or tone for your department, you are also setting the expectations for their continued employment.

Tell this person that you appreciate their efforts, and will continue to support them in the performance of their duties. At the same time, let them know that you require cooperation and that if they want to play their own tune they may have to find another band.

Ask them to help build the department or business. Ask them to help train and support other team members. In some cases they are actually looking for additional duties and would like to have a hand in developing the business.

If they are not willing to play by the rules, they leave.

Mad Bombers. These are the quiet people. They never say much. (In public) They can be aloof to the point of unfriendliness (sometimes).

Now, some of you are saying, so what? Hey, at least they are being quiet, and doing their job… what more do you want?

This is the problem with these employees. One day, they come into your office and say “I want to file a complaint” or “I’ve taken another position” or “This is a hostile work environment” or any number of other bomb drops.

Because they feel they are not involved in the Success and Daily Dealership Business they never tell you what is going on and they have little loyalty. The bombs they drop often are the result of years of feeling “stepped on” or “I’m not appreciated.”

The Fix. Identify them and ask them for their input regularly. Get them involved and talking about what they are involved in. These folks will require a little more MBWA time and will open up if they feel you are genuinely interested in them. Here is a hint. You can learn at lot about your Dealership by talking to the quiet folks rather than the noisy folks. They are generally great observers.

Help them become better participators by involving them in more daily activities. You might consider starting a Toastmasters or speaking club in your Dealership, as these folks will benefit from speaking in public.
Make sure you involve them in making decisions and policy by openly asking for their input and suggestions.

Paychecker. These folks are here for the money. They perform their duties as well as anyone else; however, they will not perform above the call of duty.

They never volunteer for anything, yet are first in line for the food at the annual Dealership picnic. You can count on their coming to work, and not much else. They do not have much loyalty, and can become job hoppers.

They are also the “first” complainers. Every time something new comes about or requires a little more effort than before, they complain. Then they put their hand out.

In some cases, they can become the “malicious obedience” or “selective obedience” employees. They never doing anything outright that would get them fired for say malfeasance or performance, but they just tip toe the line right on the edge.

The Fix. This is a 3 step process.

1st. Let the Paychecker know that they are performing at an “average” level. Help them see that meeting minimum levels only guarantees that they will have minimum paychecks and that continued performance at average will mean that they get replaced first should the need arise.

2nd. Identify goals that can be met and achieved by the Paychecker that will lead to increased levels of production and pay. Help them see a new vision of them that will happen if  they commit to an increased level of performance.

3rd. Plan to review with them monthly for the first 90 days and see what progress they have made on their goals. Once they see that you are really interested in their achievements, they will begin to come around.
If they persist in maintaining minimum levels, give them duties and tasks that reflect those levels. If they wish to always remain a “Paychecker”, chances are you will not have them in your employ too much longer, as they are always looking for the BBD. (Bigger, Better Deal)

One final thought.
There is not a “one all fixes all” solution for these underachievers.

It requires some serious thought on your part, designed implementation and regular follow-up. (Persistence) You can’t have one meeting with any of them  and expect that all will be perfect from this day forward. It doesn’t work that way.

Take the time to identify the underachiever, make a plan that gives you and your Dealership an opportunity to help someone make a change for the better and follow through.

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