So, who measures up? In an independent survey* of Service Managers nationwide, the company chosen number one for fluid maintenance products, services and equipment was BG Products. And, when asked the reason for using BG, their number one response was product quality! The result: BG Products means more satisfied customers, fewer returns and more profits for your dealership.
*Scientific, independent survey of U.S. new car dealerships conducted by The Research Partnership, Inc. 2008.
2
The Puget Sound Dealer
A Message from the Editor
Official Publication of the Puget Sound Automobile Dealers Association 16101 Greenwood Avenue N Bldg 2100 Seattle WA 98133 Phone: 206 542-3551 Fax: 206 542-7561 Email: jim@psada.com www.psada.com
Our Local Dealers are True Heros
Earlier this Spring PSADA received the Partner of the Year Award from the Trustees Association of Community and Technical Colleges for the state of Washington. The partnership referred to is the one between the Puget Sound Automobile Dealers Association and Shoreline Community College – the partnership that built the nationally recognized Professional Automotive Training Center (PATC). I had the honor of receiving this prestigious award on behalf of our dealers at a special presentation ceremony held at the trustee’s annual meeting in Wenatchee. As I prepared to receive this award I realized that the true heroes who were being recognized were our dealers. Without our dealers nothing would have happened. There would be no PATC. It was the local dealers that believed in the idea of an auto training center when PSADA and Shoreline staff presented the idea to them. It was the local dealers that guided us and taught us what we needed to do. It was the local dealers that encouraged us to push forward with the project when times were tough. AND, it was the dealers who put their hands in their own pockets and contributed over one and a half million dollars as seed money to get both Phase 1 and Phase 2 of PATC construction off the ground. But the dealers didn’t stop there. Because of our local dealers and their vision for education and their industry, their influence helped raise an additional $7 million for a grand total of over $9 million. Indeed, the dealers are the true heroes here. Their investment of time and money helps improve our state economy, sets a standard that guarantees the local industry a steady flow of certified and talented technicians, and gives thousands of young people the opportunity to build a rewarding and successful career with a sustainable living wage. Dealers have always been an important part of their communities. With their vision for the PATC they are significant forces in people’s lives.
President Sue Byers Bob Byers Volvo, Seattle 1st Vice President Jason Courter Honda Auto Center of Bellevue 2rd Vice President Jim Morino Acura of Lynnwood 3rd Vice President Sara Carter Carter Subaru, Shoreline Immediate Past President Craig Campbell Campbell Nelson Volkswagen, Edmonds Campbell Nelson Nissan, Edmonds Trustee Steve Klein Klein Honda, Everett Mike Scarff Mike Scarff Subaru of Auburn PSADA Staff James R. Hammond Executive Director Ron Olson A-YES State Manager Joyce Nichols Executive Assistant Linda Halverson Office Manager
James Hammond Executive Director
Susan Leonhardi Secretary
Inside this Issue
For information on advertising in this publication contact Jim Aitkins Blue Water Publishers, LLC 360.805.6474
Cover photo by Adam Buchanan 4
7
Message from the President - Sue Byers
8
The Electric Tsunami
11
What Your People Expect of You as Their Manager
14
Small Town, Big Hearts - Ray Sparling and Jerry Yoder
17
Women Car Buyers and Social Media
18
Profile - The Online Shopper
20
Tackling Parts Inventory - Outsourcing May Be Best Way!
22
Six Cardinal Rules of Customer Service
25
Media Buying Simplified
26
Cash & Inventory Management
27
Estate Transfers - Is This a Good Time?
31
Vehicle Retail Turnover - Increase Yours!
36
Global Journeys - Las Vegas
40
Customer Relations Training for Dealership Employees
5
6
Message from the President
Sue Byers Bob Byers Volvo Seattle
PSADA Can Help You Comply with State and Federal Law Requirements
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Over the past several months PSADA has been getting inquiries from dealers about the inclusion of two revisions in personnel laws that impact dealership employment policy: “domestic partners” and their rights under state law and the federal “GINA Genetics Information Nondiscrimination Act”. These new laws impact both the FMLA and equal opportunity policies. Both changes need to be in your employee handbooks. If you presently use the PSADA employee handbook, PSADA has already notified you about this important update and has updated your policies. If you manage your own employee handbook, it is very important that you check with your legal counsel to make sure you are current with these laws. Remember, as a PSADA member you can download, at no cost, the recommended FMLA language that includes both of these laws on PSADA’s website www.psada.com. Call PSADA for your Username and Password. After you logon go to “DEALER SERVICES” and then to “Posters and Forms.” Under “Forms & kits” you will find an up-to-date and free FMLA compliance kit with forms. The biggest question is “What is the GINA Act?” The Genetics Information Nondiscrimination Act (GINA) is a Federal law that prohibits discrimination in health coverage and employment based on genetic information. Genetic information is information obtained through an individual’s genetic tests. The law limits how you use the protected personal information. Ryan Swanson and Cleveland has advised us that the “GINA ACT” reference should be included in your employment application. PSADA members can download a free “GINA Act” compliant employment application on the association’s website. Call PSADA at 206-542-3551 if you would like a copy of the short 3-1/2 page summary of the GINA Act emailed to you. If you have questions feel free to contact Jim Hammond at PSADA 206-542-3551 or Rick Lentini at Ryan Swanson and Cleveland at 206-654-2231.
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The Electric Tsunami By Thao Tiedt Ryan Swanson & Cleveland
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Employees Twitter and tweet. They are on FaceBook, MySpace and other social networks. Often, despite a company’s carefully drafted policy to the contrary, they treat the company electronic services as an extension of their social networks. E-mails fly, often with disastrous results later. Where can a company draw the line? An employer has the right to control and monitor an employee’s use of the employer’s communication devices, including internet, cell phones, voice mail and computers. However the employer should have a carefully drafted policy that informs employees of the company’s ownership of anything, even personal communications, which utilize employer provided electronic devices. If the company intends to or wants the option of monitoring usage, the policy should include that information. What employee rights may be implicated? Employees may argue that employers should not control or monitor their communications utilizing company devices since people in America have freedom of speech and a right to privacy. In the private employer setting, however, an employee does not have freedom of speech. The Bill of Rights of the Constitution, including the First Amendment, only provides that the government may not impinge unnecessarily on free speech. Since a private employer is not a governmental entity, the private employer can limit free speech in the workplace. The right to privacy is a more delicate matter. Generally the employee must have an expectation of privacy before any privacy right is implicated. If the employer’s electronic services policy clearly states that the employee should have no expectation of privacy when utilizing employer provided communication devices as all communications become the property of the company, the employee who pleads invasion of privacy will usually not prevail. What liability could the company have for an employee’s harassing, offensive or defamatory comments using company devices? Employers can be held accountable for such information sent by an employee, particularly someone in the managerial or above level, if done on a company electronic service. Liability is much less clear if the employee’s communications are from a personal
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electronic device during personal time. However, if the employee is utilizing information gleaned from the company in the personal communication, the company could be implicated. The company would then have a duty to investigate and take appropriate action. What about messages/cartoons/ pictures that espouse particular religious, political, ethnic, gender or racial opinions or viewpoints? Such items have no place on company electronic devices, particularly if they are sent by anyone with managerial authority. These are not business communications and can present an untrue picture of the company’s value system as a whole. Unless the Board of Directors or top officers of a company have decided that the company should take a particular public stance on an issue, employees should keep their opinions on these areas to themselves when using the company provided electronic services. Can’t employees, including managers and executives, send the above type messages to their “safe list” of people who they know have the same opinions or viewpoints? There is no such thing as a “safe” list within a company or when using a company provided electronic service. While a person may think he or she knows the beliefs of other employees, family, friends or customers, those people may not object to opinions they actually find offensive in order to avoid an uncomfortable confrontation about conflicting values or opinions. Managers have to realize that if their “safe” list includes anyone lower than they in the company hierarchy it is likely that opinion based communications will someday come back to haunt the manager. This is true because, more often than not, the manager will someday have to take some type of adverse action against someone on the
“safe” list. That employee will then claim that he/she was subjected to a hostile racial/gender/ethnic/religious environment but didn’t report it because the offensive materials came from a person with the power to harm the employee’s career. Employees, and particularly managers, also have to realize that someone on the “safe” list may very well forward the opinion communication, complete with the company information as the originating party, to people outside the “safe” zone. Can the company restrict the employee’s references to the company when it’s on the employee’s own time and personal e-mail? The company can restrict the use of company information, particularly confidential information or trade secrets, whether on a company provided device or a personal device. Make sure every employee signs the company confidentiality/trade secrets policy or agreement and make sure the policy or agreement includes a warning about even mentioning such information in blogs, instant messages or other nonbusiness communications.
employees from discussing the company on MySpace or FaceBook. However, employment counsel should be contacted before the company issues such a prohibition since some states have statutes that protect employees’ private activities. What if the employee is trashing other employees or the company on a social network? If the company either discovers such information or receives a report about such information, the company should investigate the situation and take appropriate action against the employee. At the very least, trashing the company on a social network shows the employee lacks judgment and doesn’t care much about the entity providing the employee’s livelihood. This lack of loyalty and judgment would warrant termination.
Can the company restrict the employee’s references to the company when it’s on the employee’s own time and personal e-mail?
What if the company does not mind if an employee discusses by whom he or she is employed but only if the site is appropriate? A company could restrict employees from mentioning by whom they are employed unless it is on a company approved site such as LinkedIn. However, enforcement of this policy would be difficult and even handed enforcement particularly time consuming. The better policy is that the company prohibits employees from mentioning their employer unless it is on a site provided by the company to the employee on the company electronic devices. That way a company could provide LinkedIn to the employees for business purposes but prohibit
What if the company is sued by someone who has been libeled or otherwise defamed on a social network by an employee using the company electronic services? The company should immediately contact its insurer. General Liability coverage usually contains a provision for Personal and Advertising injury. A wise company will consult its insurance broker before such a claim is made to be sure the company would be covered for such a claim if one happens in the future. For more information on this topic please contact Thao Tiedt at 206-654-2230. 9
a Winning team Get a CPA firm with a winning record on your team.
Peterson Sullivan LLP, one of the nation’s most successful specialists in auto dealership accounting, serves more than one hundred dealers in the Pacific Northwest. We are one of only a few CPA firms approved to perform audits for GM Motor’s Holding Division. And we are the only Washington State member of the exclusive AutoCPA Group. Following are only a few of the many areas where we are trusted advisors to our automotive industry clients: • Cash controls • Internal controls • Cost segregation • IRS reporting requirements • Dealership valuation • Sales and B&O tax consulting • Estate and succession planning • Tax planning • Financial statement analysis We believe strongly in building long-term relationships with our clients. We aim to understand your business so well that our advice becomes indispensable. Please contact Kevin Allison to see how we may assist your business needs at (206) 382-7777 or by email at kevina@pscpa.com. Peterson Sullivan. Driving your success.
Peterson sullivan llP 10
What Your People Expect of You
As Their Manager
By John Strom
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Most managers don’t give much thought to what their people expect of them as their manager. You think about this more in terms of what you expect the person managing you should be doing for you. Am I right about this? And I know most managers don’t spend a lot of time asking their people what they expect him/her to do as their manager! I know I wasn’t asked this more than maybe two or three times in my entire work life (…and I’ve been working for a long time!) So, let’s give this concept some thought – what do your people expect of you as their manager? Wait a minute… I’d better be clear about whose expectations we are talking about here. We’re talking about what high performing people expect of their manager. We’re not talking about the middle performers or low performers (…though I will address these people later). Your high performing people expect you to... • Do what you say you’ll do – More than anything else, I believe people expect their managers to take the actions they say they’ll take – talk to the people they say they’ll talk to.
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Deal with things that aren’t “right” – Your people want you to take action when things aren’t as they should be. This covers a lot of areas, for example: o When co-workers aren’t performing as they should – Your people expect you to talk with these people and take effective actions to either improve these people’s performance or get rid of them. High performing people want to work around other high performing people. They expect you to have people around them who also perform at a high level. o When there are obstacles getting in the way of high performance – Your people expect you to take effective action to help them be high performers. If something’s keeping them from high achievement, they expect you to notice and to talk with them about what should be done to remove the obstacle. Then they expect you to work on their behalf to get it removed! 11
•
Have high expectations for their performance – High performers expect of lot of themselves and they expect you to expect the same (… now that’s a cool statement!). They expect there to be regular conversations about this, too. Don’t hold them back by setting performance goals for them. Engage them in discussion about setting their goals; encourage high goals; even challenge them!
simply be something else they’d like to tackle – that intrigues them!
Give them the opportunity to perform – Nothing is more frustrating and limiting than not being given the opportunity for high performance. There needs to be continual discussion about this too – ask them: What else would you like to do? Where else can you increase your performance?
High performers like being told “what needs to be done,” then be given the freedom to work out “how best to do it.” They know what works best for them. Let them self-direct; don’t direct them. (Note: This doesn’t mean you don’t discuss how they plan to do it. It’s your job as their manager to know what they’re doing and how they’re doing it. Ask them how they see getting it done. Talk through any concerns you may have. Offer ideas and suggestions (… they’re just that – they may or may not want to use them). Ultimately, you have to have the confidence that how they plan to do it will get the results you both want. Remember, there are often many alternative ways to achieve these results – be open to their ways, as they’re thinking of what will work best for them. Your ways are what would work for you.
High performing people expect you to be their promoter not their boss! I mean this in several ways. They expect you to encourage them, to recognize their performance and to let others know about it and about them. And when an opportunity arises, they expect you to give them a shot at it. This may be a promotion or it may
Middle and Low Performers Have Different Expectations of You as Their Manager You don’t want to meet all the expectations of middle and low performers. Sure, they may want you to “work with them” to improve their performance (…at least so they can keep their job!). They also want you to:
•
• Be fair with everyone – By this they mean “don’t expect too much from us.” Average performance is what should be expected – it’s good enough. We’re OK with what we’re doing, you should be, too. • Accept my explanations/excuses for lower performance – There are reasons why I don’t perform at those high levels – they’re legitimate. It’s not my fault. 12
Don’t play favorites – Don’t give those high performers special recognition, special perks. We all should be treated equally. You know how I feel about these: Insist on high performance – from everyone. Insist on continual improvement in performance – from everyone. Focus on future performance – what are you going to do to increase future performance? Not why didn’t you perform in the past. And absolutely play favorites. Those who perform best deserve the best rewards – the best compensation, the best benefits, the best perks. To treat everyone the same is the most unfair thing you can do. Ultimately you choose the performance level you expect from yourself and others. •
High performers expect to work for high performing managers Engage and involve your people in continually improving their performance – bringing it up to the highest level possible – for them. Only when it’s at this level can it truly be decided whether or not it meets the expectations of the owners of your business. They expect this of you as a manager in their company. And really, it’s what your people expect of you as their manager. John Strom has been helping retail automotive managers improve their performance for over 25 years. His company, Strom & Associates, is a member of the Performance Development Group. To learn more about their services, visit www. perdevgrp.com.
Ray Sparling (left) and Jerry Yoder Photo by Adam Buchanan
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Small Town, Big Hearts Ray Sparling and Jerry Yoder By Craig Chastain
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“I’d buy a car from these guys.” After spending just a short time with Jerry Yoder and Ray Sparling, the legendary co-owners of Sunset Chevrolet, it’s your only logical conclusion – these guys and their team are as good as it gets. The dealership in “tiny overhead” Sumner, a short drive but a world away from big-city Seattle, has achieved a distinction that’s the envy of the industry – the biggest selling Chevrolet dealer in the state. Spend an hour in the cozy confines of Jerry’s office (Ray doesn’t have one) and you’ll get a sense of why generations of customers come back time and again to Sunset. “There aren’t a lot of owners who have an office on the showroom floor,” observes Jerry. Indeed, few owners have such an eclectic wall of mementos celebrating everything from Little League championships to national industry awards, hydroplane titles to expressions of thanks from grateful local schools, charities and neighbors. The combination of savvy business practices and selfless community service has made Sunset the gold standard among car dealers and their carmaker of choice. “Chevrolet’s the only car that goes in my yard,” states Jerry, who drives a bright yellow Silverado and keeps a collection of two dozen classic Chevys - each of which he restored himself - in a private showroom named “The Best Damn Garage in Town.”
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Yoder and Sparling are an unlikely pair but a perfect match for leading a successful dealership. Jerry started at Sunset in 1959 as a lot boy with a dream of ownership; Ray came on board in 1980 after learning the business at some of the region’s largest operations. Together they crafted a plan for joint ownership that came together in 1996, and Sunset has ranked among dealership elite ever since.
extend throughout the region: support of the schools through training, donated vehicles and materials; participation in food drives, fundraisers and civic events; lifting up local heroes in police and fire departments. Their pride and joy might be Sunset Stadium, home to Sumner and Bonney Lake school athletics and the centerpiece
As important as family and community is the Sunset customer. It’s Ray’s responsibility to get them there – to “drive two miles past Puyallup to tiny, low overhead Sumner” – as his radio spots have declared since 1983. The message is consistent, stressing people over price, selection and service above sizzle and smoke.
Through the years, two vital business principles have guided their success: team and customer loyalty and community service. “The biggest thing we have is our people,” says Ray. “We’re a family - without them we’d be nothing.” With a firsthand knowledge and appreciation of every last job at a dealership, the two owners have made a priority of taking Jerry Yoder (left) and Ray Sparling in front of Sunset High School Stadium (Photo by Adam Buchanan) care of “family”. Many on the Sunset team have been there for decades, and several represent a second – even third of sports activity for Sumner and “If we can get a customer in here generation of employees. From summer beyond. The first high school stadium once, then spoil them rotten…do picnics to holiday celebrations, they to offer “naming rights”, the facility whatever it takes to make them happy, get together often, away from work, as boasts the latest in turf and scoreboard they’ll come back,” says Ray. “Once we families do. technology underwritten in large part by get them past River Road (the gateway Sunset Chevrolet. to Sumner), we show them through “For the past dozen years we’ve service and personal attention that taken our top performers in every Sunset has long held a high they’ve come to the right place.” department to the Queen Charlotte profile presence around the Sound, Islands for a getaway and fishing derby,” from advertising in Mariners games to A vehicle purchase at Sunset says Jerry. “There’s a $10,000 grand sponsoring winning hydroplane teams launches what is usually a long-term prize for the biggest fish.” including Dave Villwock’s 1994 Gold customer relationship. Innovative Cup championship. Their showroom benefits like their quarterly “Right from In addition to the perks, a vital part walls are covered with photos of teams the Start Clinics” - which feature vehicle of drawing the staff together is a shared supported by Sunset, and in most there is orientations fueled by a massive pancake commitment to community service. The an image of a trophy being hoisted. breakfast - to free oil changes and car contributions of Sunset and their people washes have created a fervently loyal 16
customer family that numbers in the tens of thousands. Chevrolet consistently ranks Sunset among the highest in customer satisfaction: at last count, there were more than 32,000 service customers and more than 19,000 active sales customers on the books. “We have generations of customers who come back with their kids and grandkids,” says Jerry. “We recently sold a car to a guy who moved from Sumner to Ketchikan, Alaska – he still wanted to buy from us.” The history – the legacy – of Sunset Chevrolet is well captured in the stories told on a wall of photographs, a packed trophy case, a scrapbook of satisfied customers and grateful communities. For Jerry and Ray, they are stories that reflect careers filled with hard work, service and success. And they never forget, as Ray reminds us, that “Chevy gave us our lives.” As they plan for a busy selling season while preparing to pass the mantle of ownership in the not-too-distant future, Jerry and Ray remain grateful for the customers and coworkers that helped bring bigtime success, and an ever bigger heart, to a small Washington town.
Women Car Buyers
Social Media By Jody DeVere AskPatty.com President and CEO Social media marketing is mostly uncharted territory for most auto dealerships and an untapped opportunity to grow your business with women who are the most influential and powerful brand ambassadors in social media. I attended and chaired a round-table on social media marketing to women car buyers at the annual M2W – Marketing to Women conference recently where the brightest and greatest minds on how to reach women spoke, networked and discussed the latest trends and strategies. It was an invigorating nice change of pace for me to spend time mostly in the company of women who like me understand the power of social media and how women in social media are influencing brands and buying decisions. At AskPatty.com we are very committed to educating the auto industry that women are not a diversity or niche market and how to build relationships with women offline and online, including social media sites like Facebook and Twitter. Women are the vast majority of car, tire and service customers, yet at M2W it was the like singing to the choir, very few men attended the conference and ZERO men from the auto industry were in attendance. Is the jury still out in your mind as to whether social media matters in business? If so, a recent survey might make you change your mind. In fact, it may cause you to re-think your entire marketing outreach, especially if you market to women. The study found that 42 million women in the United States (roughly 53% of the 79 million adult women in the United States who use the Internet) participate in social media at least weekly. As they spend more time with social media, women are spending correspondingly less time with traditional media: 39% less on newspapers, 36% less time reading magazines, and 30% less time watching TV. That’s according to a recent social media survey by BlogHer, the women’s blog network, along with iVillage and Compass Partners. To understand a woman’s power to influence, review the entire study from BlogHer. com and Partners on what women are doing in social media, online and the power of blogs in women’s purchasing decisions. It’s should be no shock that men and women act differently online, just as they do in everyday life. The Web is an extremely social medium, and Web 2.0 is all about being social. Traditionally, men are the early adopters of new technologies. But when it comes to social media, women are at the forefront. Rapleaf conducted a study of 13.2 million people and how they’re using social media. While the trends indicate both sexes are using social media in huge numbers, their findings show that women far outpace the men. Jody DeVere is the CEO and President of AskPatty.com, Inc. Visit www.askpatty.com to learn more about how to become an AskPatty.com Certified Female Friendly® Dealer. 17
T2:0.062
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The demographics haven’t necessarily changed: today’s online car shoppers are not much different from traditional car shoppers. But shopping behavior has undergone a revolution. Dealers must provide consumers with complete information online, and they should be prepared to respond quickly, accurately, and fully to every request for information—which is not always about price alone. During the early years of the Internet, the typical online shopper was young, wealthy, and male, according to E-Commerce Times. That’s all changed. Today, online shoppers are everyone. If they can point and click, they’re shopping for cars on the Internet. So, while there’s no longer a “typical” Internet shopper, online shoppers do share key characteristics: • Internet consumers are motivated by convenience and control.
T2:10.875”
The Online Shopper
• They are informed. They visit various websites to determine MSRP, invoice price, available promotions and discounts, available features and options, performance parameters, average annual maintenance costs, and other factors. They are often as informed—if not more informed—about the vehicle they are buying as the sales representative selling it. • They are committed to the online shopping experience and demand the same of the dealers with whom they do business. Thus, they expect thoughtful responses to their emails and phone calls, and they expect quick responses with answers to their questions. Unfortunately, they don’t always get what they ask for. In fact, online car shoppers who ask for the price of a new vehicle are given this information less than 25 percent of the time, while only 13 percent are given information about the benefits of a particular brand or vehicle, according to one study. • According to the same study, 20 percent of consumers will go somewhere else if they do not receive a response in four hours or less. The average response time is currently over five hours. • Many dealers mistakenly think that online shoppers are visiting dealer site after dealer site trying to find the lowest price possible. While price clearly affects a shopper’s final purchase decision and should always be included on your site, there are many other factors that influence online car shoppers’ buying decisions. These buyers understand that a dealer has to make a fair profit, and they will often pay for convenience and other perks they find valuable in the shopping/buying experience. This article is adapted from A Dealer Guide to Leveraging the Internet to Drive Sales (BM41), available through NADA University’s Resource Toolbox.
625”
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“THEY’RE ALWAYS KEEPING ME IN FRONT OF SHOPPERS’ EYES.” Tammy Darvish Vice President
Ronda Nassib Advertising Consultant Greater Washington, D.C.
MARKETING THAT WORKS FOR TAMMY Tammy is a people person. And the more people in the D.C. area
sponsorships of MLB on FOX, NASCAR on FOX, NFL on FOX,
who see her cars, the better. So she knows that our high-profile
BCS on FOX, as well as the NBA on TNT will attract millions
ads in the biggest shows on the biggest networks are important in
more. Hey, like Tammy says, “We are in this together.” For videos of
attracting millions of customers to her 27 dealerships. And our proud
success stories from dealers like Tammy, visit results.autotrader.com.
©2009 AutoTrader.com, Inc. All Rights Reserved. “AutoTrader.com” is a registered trademark of TPI Holdings, Inc. used under exclusive license. New England Patriots trademarks, including the Patriots logo, are the property of New England Patriots L.P., and are used pursuant to a licensing agreement with New England Patriots L.P.
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By Jennifer Conner
An annual parts inventory should not be looked upon with dreaded anticipation. It shouldn’t even be thought of as a necessary evil, because there’s a lot of good that can come out of a well run parts inventory. This is especially true if a parts inventory company is hired to do the job. A dealer’s parts inventory can be valued at hundreds of thousands of dollars to well over a million dollars. This large of an asset needs protecting and auditing, ideally, by an unbiased third party. Let’s take a look at why “independent” beats “in-house.”
Outsourcing your parts inventory keeps your management team honest. There’s an old saying, “Don’t let the fox count the hens.” Conducting an in-house inventory with your own parts manager and parts personnel is sort of like having the fox count the hens. As they say, opportunity makes the thief. While this is true, you also don’t want to foster an environment of mistrust. That’s why it’s crucial that your parts inventory company takes more of a team player approach than a watchdog attitude. Ideally, both parties should be working together to produce the most accurate count and assessment of profit/loss to keep the parts department moving in the direction of constant refinement and improvement. Theft is generally the exception rather than the rule and there are certain safeguards dealerships can take to avert this potential problem. A fastidious parts inventory company will highlight the dealership’s areas of vulnerability.
Sometimes it takes a fresh perspective to highlight inefficiencies. “That’s the way we’ve always done it” doesn’t necessarily mean it’s right or helping the bottom line. Whether it be workflow, procedural or general housekeeping practices, there is always room for improvement in any given parts department. Keep in mind that an experienced parts inventory company has had an intimate view of the inner workings of hundreds of parts departments in dealerships coast to coast. They’ve seen the best and worst and 20
everything in between. While their confidentiality should be on par with that of an attorney/client relationship, they can and often do make anonymous references to other dealers’ successes and failures for your benefit.
Independents aren’t as expensive as you think when you factor in how quickly they complete the inventory process. What would take an in-house team days on end to complete would take a skilled inventory company 6 -8 hours on average, depending on the total inventory value. In-house inventories can lead to costly overtime wages, employee burn out or disgruntled employees for being called in on a weekend or after hours.
to swiftly access and utilize all of the pertinent information to get a precise snapshot of the inventory value.
Bridging the Gap. Typically, the dealership’s accounting department has little understanding of the parts department and likewise, the parts department personnel aren’t always well versed on accounting procedures. Therefore, if a discrepancy arises, there might be tension and skepticism between the two departments. An inventory company has vast parts experience, accounting experience and DMS experience. They can be the unifying force to bring conflict resolution and a greater understanding and respect between all parties.
Wrap up meeting. Even the best run in-house inventories Minimizing interruption of business. With an outside company, your dealership never has to shut down to shift your manpower to counting versus tending to the customer. Outside companies can perform inventories when the dealership is open or closed without any interruption of business and be totally transparent to the customer.
Accuracy. Parts inventory companies are highly systemized. They are working with an industry specific, highly skilled and trained work force. Not only are they knowledgeable of automotive parts, but also of the inventory process itself. They work on tight variances and take pride in and stand behind the accuracy of the final number.
An outlet for obsolescence. Many parts inventory companies have the know-how and connections to move or broker your obsolete parts. The parts inventory companies can also help a dealership revise their return procedures and policies to avoid being in a position of excess obsolete parts in the first place. As they say, “An ounce of prevention is worth a pound of cure.”
Experts on the DMS. One of the biggest hurdles dealerships oftentimes face is management who has a limited understanding and usage of the DMS. Pulling and analyzing reports is a parts inventory company’s forte and they know how
can fall prey to internal finger pointing or bottlenecking. With an independent inventory company, there is no reason for the inventory to drag on. They are highly motivated to tie up any loose ends, resolve all discrepancies, complete the process and report the results in a very timely manner. Their motivation is getting paid!
There is an added value inherent in hiring an independent firm. Parts inventory companies usually offer consulting services as part of their fee. By implementing just one of their cost-cutting ideas or procedural changes, in theory, the inventory company could pay for itself over the course of the year with the implementation of just one new idea.
An outsourced parts inventory report is like issuing a report card to your parts manager. It can be an invaluable gauge of how well the department is being managed. Most publicly traded dealerships mandate a third party inventory. Evidenced by the examples above, independent dealerships would be wise to follow suit. Jennifer Conner is the Marketing Director of Total Dealer Solutions Inventory Company based in Fort Lauderdale, Florida. For more information on this subject please contact Jennifer at 954-914-5181 or jen@markjpayne.com. 21
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There are a lot of ‘rules’ in customer service, but few more important than the six we’ve listed here from our newly reproduced DVD Six Cardinal Rules of Customer Service. Each makes a valid statement and will increase the satisfaction of your clients. Cardinal Rule #1 - Personal Responsibility/Accountability: Don’t Pass the Buck One of the most important attributes a company staff member can have is personal responsibility - personal accountability. Those that have it refuse to accuse, blame and complain. Those that do accuse, blame and complain break one of the most important cardinal rules. “Who” statements accuse and blame. “Who took my stapler?” We should use a more positive manner and take personal responsibility by saying, “I seem to have misplaced my stapler; has anyone seen it?” Remember to take full responsibility with the customer. The customer doesn’t like to hear accusing, blaming and complaining statements. They know when you’re passing the buck! Cardinal Rule #2 - People Before Paperwork When someone walks into your
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By Nancy Friedman The Telephone Doctor
place of business or calls you while you’re working on something, Cardinal Rule #2 says drop everything. Attend to that person. Remember, paper and other tasks can wait, people should not. We’ve all been abused when we go shopping and been ignored because the staffer is doing something else and we know how that feels. Let’s not abuse our own customers. Remember: People before paperwork. Cardinal Rule #3 - Don’t RUSH Your Customers Sure, you may understand something real quick, but rushing the customer along will only lead to them feeling intimidated. Remember to mirror their speed. Trying to be “done” with a customer as quickly as possible is seen as being rude and uncaring. Rushing threatens customers. Take your time with each and every contact. Cardinal Rule #4 - Company Jargon Ever get a report from a company and not understand it? Some companies have company jargon that makes the CIA wonder what’s up. Be very careful not to use your own company jargon on your customers. You and your employees may understand it very well, but the customer may not. And you’ll only cause a lot of
unnecessary confusion. Spell things out for your customers. Use easy words. Try not to abbreviate. Remember, don’t use military language on civilians. Cardinal Rule #5 - Don’t Be Too Busy To Be Nice Hey, everyone’s busy! That’s what it’s all about. Being busy does not give you carte blanche to be rude. Remember, you meet the same people going down as you do going up. They’ll remember you. (What’s worse than being busy? NOT being busy.) Cardinal Rule # 6 - Be Friendly BEFORE You Know Who It Is There’s a good lesson to be learned here. One Telephone Doctor saying is: Smile BEFORE you know who it is. Often times it’s too late. Being friendly before you know who it is will earn you classic customer service points. The customer needs to know you want to work with them, no matter who they are. Remember, sometimes it’s way too late to smile and be friendly after you know who it is. Any one of these tips can boost your customer service! For more information on this article contact www.telephonedoctor.com.
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By Victoria Robinson
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Buying media is challenging these days... Buying media is challenging these days because there are so many choices. In Seattle alone, there are 40 radio stations, five network TV stations, 44 cable channels and countless satellite TV channels, plus newspapers, direct mail, websites, magazines and more. Your success depends on how you create a media buy. A balanced mix is the most effective marketing strategy; simultaneous brand messages to the same consumer in different media will produce greater impact than the sum of the effects of the individual exposures. It’s like a car dealership — if you want to appeal to a wide audience, you need a variety of cars to appeal to different buyers. After all, the compact buyer is not going to be enticed by a huge truck. The challenge is picking the right mixture of cars to sell. So where do you start?
Research is like a roadmap pointing you in the right direction. Begin by understanding your target audience’s lifestyles and mediaconsumption habits to gain a bird’s-eye view of which media to consider. Utilizing credible, unbiased third-party research will help you determine which media will best reach your target audience. Your budget determines how deeply you can buy. If it’s limited, target a small number of outlets with a concerted message. If you have a significant budget, spread your dollars over multiple media to increase reach. The synergy between the right media mix at the right time will deliver the best results. Six months before making a purchase, car buyers primarily use TV to obtain auto information; but within a month to two weeks of making a purchase, they use newspaper ads and the Internet to find more specific auto information. Your marketing message needs to be delivered to your audience a minimum of three times before they will remember it. This can be achieved all in one medium or over multiple types, which will create synergy. While it is tempting to measure each medium on its own merit, there is strength in reaching consumers in different ways. 25
Newspapers are one of the most trusted sources of news and information, paid for and welcomed into the homes of millions of people throughout the Puget Sound region. As part of that credible content, your message will be perceived as more trustworthy. Bargain hunters are more likely to look to print than any other medium. In addition, newspaper ads motivate consumers to research products online. Online is the most measurable medium. Eighty percent of consumers now consult the Internet at least once during the carbuying process. It has the benefits of traditional media — the engagement of newspapers, frequency of radio and visual impact of TV — plus the advantage of interactivity. Radio reaches a mobile and relatively captive audience. It usually takes three to five stations to produce an effective reach and frequency. Radio stations have specific formats that appeal to specific audiences. If you can’t afford to buy more stations, then use only those that your customers listen to most and buy the optimum frequency. Frequency generates top-of-mind awareness, which is how radio works best. TV is good for branding. Buy TV across multiple channels, because people channel-switch. You’ll reach the most diverse, engaged and loyal audiences during news and sports programming. Broadcast TV is a larger investment. If you need to save money, targeting the cable channels that your customers watch can be effective. Direct mail is the most targeted form of media, using laserlike precision to deliver your message at a household level. Use direct mail to develop a relationship with repeat customers to maintain your business, and to gain new prospects to grow your business. The effectiveness of direct mail comes primarily from using a mailing list that’s clean and current and that targets the right audience. Key direct mail components are the creative, the offer and the timing. When all of these stars align, your directmail campaign will connect more buyers to your showroom. Having a balanced media mix allows you to effectively reach the right audience, get results and deliver a good return on your investment. By diversifying, you’ll reap the rewards of more customer traffic — and more sales. Victoria Robinson is the media planning specialist with The Seattle Times Company. Her 18 years of experience extends back to her media buying and planning days with major retailers including Macy’s Northwest (formerly The Bon Marché) in Seattle and Goody’s Family Clothing based in Tennessee. For more information about media planning, please contact Victoria at 206-652-6845 or vrobinson@seattletimes.com. 26
By Chip Maher NADA-ATD 20 Group Consultant
Watch your Cash! Many dealers are not here today because they ran out of cash. Even profitable dealers got caught off guard without enough cash to sustain the downturn. The lack of working capital or even failing to meet the manufacturer’s “working capital guidelines” can be a serious concern for your store. Review and manage your receivables and cash on a regular basis to find frozen capital and root out ineffective processes. If your customer receivables are above guide (no more than 50 percent of parts, service and body shop sales) or if there is a substantial amount of aging, it is obvious that the processes you have in place are not working. It doesn’t make a difference how much gross you hold, if you cannot effectively manage and collect the cash generated by your operations.
Manage your Inventory! As the new- and used-vehicle markets have become more efficient, downward pressure on margins has made turning inventory more important than ever. “Gross per unit” is not the standard it once was. Now, total gross and turns are key to profitability. To turn inventory efficiently, you need to have the right mix (days’ supply to market) acquired at the right price (cost to market) and then priced right (price to market). When all three of these components are optimized, you will generate more total gross, turn inventory faster and increase profitability
By Kevin Allison Peterson Sullivan, LLP
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The downturn in the economy and the troubles in Detroit have adversely affected every dealership in the country. However, in these tentative economic times there are opportunities for estate planning. One possible tax-saving strategy is to transfer estate assets to the next generation, thereby reducing the value of the first generation’s estate and the related estate tax. Because dealership valuation, real estate valuation, and interest rates are all down, the ownership in both the dealership and real estate can be transferred at a much lower cost than would have been the case just a few years ago. This can translate into significant estate and gift tax savings for the family. While tax savings is only one of many important factors to consider before transferring ownership to the next generation, it would be prudent to consider it before valuations, interest and tax rates start increasing. Additionally, the transfer of income-producing property to a younger generation will usually result in less income tax to pay since the children are most likely taxed at lower rates. Presently, the value of the estate asset being transferred can be further reduced by discounts for minority interest (a transfer of 50% or less) and lack of marketability if
restrictions are placed on any subsequent sale of the transferred interest. Recent proposals in Congress have included provisions to eliminate such discounts for sales or gifts to family members so it is possible this window of opportunity may be closing. Two of the most common methods for transferring ownership are by sale or gift (or a combination of the two) so I will briefly discuss both options. SALE By selling the ownership in an asset, you can effectively “freeze” the value of the asset at its current level and transfer all future appreciation to the next generation. This halts any additional increase in estate tax caused by an increase in the estate value. In most cases, the younger generation 27
will not have sufficient cash to buy the asset so a note is usually taken as consideration for at least a portion of the sales price. In such cases, the tax code requires that the note include a minimum interest rate. This Applicable Federal Rate (“AFR”) changes each month and is dependent on the note term and compounding period. Currently, the AFR is very low. The required minimum interest rate on a note with a term of more than nine years is approximately 4%, even less on a shorter-term note. Since both the value of the property being sold and the AFR are presently at low levels, the required cash needed to fund the sale is much lower than it would have been a few years ago. In fact, the income from the property being sold may be sufficient to finance the monthly or annual note payment. This decreases the cash flow burden to the younger generation. Additionally, the interest that is being paid on the note will most likely be deductible against the property’s income which reduces the annual income tax obligation. It is very important to structure a sale and payment plan that works best with your particular situation. While a sale may result in a taxable gain, it may be taxed at the more favorable longterm capital gain rate. Presently, long-term capital gains are taxed at a 15% rate. There has been much discussion on increasing this rate, giving another reason to consider selling sooner rather than later. GIFT Another alternative to consider when transferring asset ownership is gifting. A gift occurs when an asset’s ownership is transferred for less than its fair value. An advantage to gifting (at least to the second generation) is that little or no cash is needed to complete the transfer; however, it can result in the payment of gift tax by the person making the gift. While selling an asset for less than its fair value is certainly an advantage to the second generation, it may be very burdensome to the first generation, since any cash flow received from the gifted property is given 28
away and not replaced. The cash flow needs of the first generation must be considered before making the final decision to gift. Because the future of estate taxes is currently uncertain, it is difficult to develop an overall estate plan until Congress decides on what changes are to be made. Currently, tax-free, annual gifts of $13,000 per donee are allowed if the gift represents a “present interest”, meaning that the donee must receive the complete use, enjoyment, and benefit of the gifted asset immediately. Gifts to a taxpayer’s spouse are usually exempt from gift tax. Additionally, each taxpayer can exclude $1,000,000 of gifted property value from taxation during his or her lifetime. Because the amount of a particular asset that can be gifted taxfree is dependent on its value, it is most efficient to gift when property values are low. If you have not yet used your $1,000,000 exclusion, now might be a good time to consider using all or part of it.
Because the future of estate taxes is currently uncertain, it is difficult to develop an overall estate plan until Congress decides on what changes are to be made.
There are a number of factors to consider before deciding to transfer part of your estate to the next-generation; that tax effects of the transfer is just one factor. You should consult your family members, tax advisor, and attorney before considering any such transfers. For more information on this topic please contact Kevin Allison at Peterson Sullivan, 206-382-3777.
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By Scott Dreisbach
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Having been directly involved in the retail automobile business for nearly 40 years, I have come across a myriad of “better mousetraps” and so called “magic pills.” If I had a dollar for every time a vendor told me that “all you have to do is sell one more car to pay for it,” well, let’s just say that we have all heard that before. The truth is, as it relates to the new and used vehicle sales game, it’s all about retail turnover. It always has been and it always will be. The question then becomes, “How do we increase vehicle retail turnover?’ We can spend more money advertising. We can pay extra commissions. We can price our inventory on the Internet to be the most attractive in terms of a price search. We can lower our grosses. We can try to reach out to a broader base of prospects. We can also wish, hope and pray. These are not the solutions I advocate. Have you ever wondered how one of your competitors always seems to be able to deliver more vehicles than you? Or how someone in your “20 group” was continuously selling 1 to 1 (or more) used to new? Or how they grossed more per unit than you? Or how they were able to experience little or no “wholesale pain?” It’s all about the turn. We all know that the “quicker turners” gross more. That goes for both the new vehicle department as well as the used. This is no secret.
I recently completed an exhaustive study of all of the ramifications inventory decisions can, and do, have to the dealership’s bottom line. Many things were clearly revealed and confirmed by the data as a result of the study. The following list is not intended to be a revelation, nor is it all inclusive: •
Quicker turning vehicles gross more per unit on both the front end and back end
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There is a direct correlation between age and gross
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Gross almost always goes up as availability goes down and the opposite is also true
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Sales compensation in real dollars, and as a percentage of gross, goes up in direct proportion to vehicle age
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Many specific years, makes and models sell faster than others
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More inventory does not necessarily mean more deliveries
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Salespeople tend to lead prospects to the “freshest” inventory 31
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Dealer advertising dollars are largely spent on their slowest moving inventory
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Seasonality, special events, and incentive programs are here to stay
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Forecasting sales is very unpredictable and is usually optimistic and inaccurate
Back to the original question: “How do we increase retail vehicle turnover?” One of the best (and this one is free) methods to increase retail vehicle turnover is by installing and following (every day) a stocking guide. One of the many functions of this stocking guide is simply measuring the cost of sales of the units we are delivering versus the remaining inventory by sales segment and individual model years within each segment. I like to use the following 11 sales categories and the eight most recent model years within each category. The categories are: small car, sporty car, mid-size car, fullsize car, small truck, small sport utility, large truck, large sport utility, mini-van and van. When you clearly know how many and what the cost of sales of the vehicles are that are “burning gas” and then compare that to your “ground stock,” you will have an exact idea of whether you are long or short in that model year and segment in either units, ready money, or both. Your sales pace earns you a stocking guide number in both unit count and average cost of sales. It then is simply looking at your actual inventory versus your ideal (guide). The action required to “get into balance” is clearly apparent. As an example, if your number one gross revenue producing sales segment is mid-size cars and your best performing model year and quickest turner is 2006 within that segment and the average cost 32
of sales is $8,200, then it stands to reason that your inventory of vehicles in that segment and model year needs to be as close to $8,200 (lot ready) per unit as possible. The sales pace and number of units sold in that segment determines your “stocking guide.” The closer your inventory is to the cost of sales of the vehicles that you are selling, the more active that inventory becomes. Conversely, the further away from the $8,200 target your inventory is, the less active it becomes. Another use of the stocking guide is when it comes to appraisal time. If, for example, you happen to be offered a trade that is a 2006 mid-size car but is worth around $14,000, get a buy figure on the unit that is good for at least ten days, trade for the vehicle, try it out on the lot for those ten days and if it isn’t gone in those ten days, cash it. This will allow you the opportunity to try other vehicles without the risk of wholesale pain. Ultimately, you will find the ideal inventory in both the number of units you need, as well as the cost, for each sales category and model year. I strongly suggest aiming for a target of a 37-day supply of units and a 37-day supply of dollars in each sales category and model year. (The unit days and dollar days calculations were covered in a prior article, and I will be happy to send it to you upon request.)
I have developed a simple Excel spreadsheet “stocking guide” tool that you can use to accomplish this (no charge or obligation) and I will be happy to send it to you upon request. Simply send me an email asking for the used vehicle stocking guide. The “feedback” that this type of simplified inventory management system will provide you will become invaluable. Part of the reason Wal-Mart has become the retailing giant that it is, is due to strict adherence to the basic principles of inventory management. Monitor demand, measure movement. Make decisions. You will rarely find any of their shelves empty or overstocked. If it is a good producing, quick turner, they gradually increase their stock until they find that point of diminishing return (where more does not equal better). If they tried it and it doesn’t work, they forget it and move on and try something else.
I strongly suggest aiming for a target of a 37 day supply of units and a 37 day supply of dollars in each category and model year.
It will soon become evident that there are some sales categories and model years that just do not make sense to participate in with an inventory investment. You will also find that by maintaining 37 days worth of units and dollars, there will be categories and model years that sales grow rapidly in. And finally, you will also be able to find the point of diminishing returns in each sales category where more does not necessarily mean better (the point of diminishing returns).
If you will take the time to implement this type of system (or any of the available vehicle inventory management systems, mine included), you will increase your total “used vehicle department’s” gross profit more than you might imagine. The bottom line is that when customers leave our individual used vehicle car lots without purchasing, it is almost always because they did not see what they truly were looking for. (Sometimes they will not even get out of their
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vehicle and just do a “drive by.”) Remember, you cannot be all things to all people and it is impossible to stock everything. When your used car lot has more on the ground of what your customers are looking for, what do you think will happen? Today’s technology gives us all the opportunity to make more intelligent decisions, more accurately and faster than ever before. Literally, with a few clicks of your mouse in the right program, you can get all of the information you would need to make a better inventory decision. While it is impossible to predict economic swings, natural disasters, terrorist activities or wild fuel price fluctuations, you can phase in a “more active” inventory. Ask yourself this question. Am I confident that my managers are using all of the tools and data available to them to make the very best possible inventory decisions? It has been said by many different professionals that the first step to recovery is to admit you have a problem. This step is often the most difficult one to take as it involves an admission to oneself that somehow, some way, we have failed. As car people, we always want to do better and be part of the optimistic breed. We all believe we will do better, even when repeated results keep staring us directly in the face, month after month. Is your inventory the problem or the solution? Do your managers really use an inventory management system? If not, why not?
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Global Journeys
With Janet Maines
Viva
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There is a saying that goes, “What Happens in Vegas, Stays in Vegas” but Las Vegas has so much to offer in all areas of entertainment, art galleries, first class hotels, sports complexes and outdoor recreation that the word has spread across the country.
Las Vegas
getting married, so Las Vegas is an ideal wedding destination. There are numerous hotels and resorts lining the Las Vegas Strip. The MGM Grand Hotel & Casino is a luxury resort that exceeds your expectations in
Wet Republic (a hip club/pool) are fun for adults while a lion habitat ensures a fun experience for children. Forever Grand Wedding Chapel guarantees a memorable wedding ceremony for romantic couples of all ages. Aria, the newest Las Vegas hotel, is
amenities, hotel services and shopping. There is a Grand Spa & Health Club, a Grand Pool Complex and Skylofts suites perched on the top two floors of the hotel. Nicer restaurants, clubs and
located in the City Center next to high end Crystal’s shopping center. The hotel features world-renown chefs and an intoxicating nightlife. The newest hot spot is Liquid
The city of Las Vegas celebrated its 100th birthday on May 15, 2005. Those birthday events commemorated the May 15, 1905 auction where 110 acres of land were sold off and the original city of Las Vegas was founded. The first hotel and casino to open in Las Vegas was the Golden Gate Hotel and Casino in 1906. Contrary to popular belief, the famous Las Vegas strip is for the most part not within the city limits, but with the majority of the strip located within Clark County. In 2009, more than 36 million people visited Las Vegas and more than 19,000 conventions were held with the average stay of 3.6 nights making tourism and entertainment one of the largest employers in the Las Vegas valley. Nevada does not require a blood test or a waiting period prior to
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Pool Lounge, the adults-only outdoor playground. Aria’s art collection is surprisingly impressive featuring many recognizable artists. This contemporary and sophisticated property is probably more appealing to adults than families with small children. Las Vegas is a culinary delight for anyone’s palate. Mon Ami Gabi, located in the Paris Resort, serves authentic French food at incredibly reasonable prices. The ambiance makes you feel like you are actually in Paris and the service is great! Mon Ami Gabi is across the street from the Bellagio fountains so I would recommend getting a table outside to take in the wonderful view. You cannot make a reservation, so check for outdoor seating when you arrive. Although the restaurant is technically a steakhouse, there are plenty of delectable selections for vegetarians. Voodoo Steak & Lounge is located at the rooftop (51 stories up) of the Rio Hotel with phenomenal views of Las Vegas. Half of the lounge is located outdoors giving you a spectacular panoramic view of Vegas. If you go there, order a Witch Doctor to share! The Stratosphere Hotel and Tower, at more than 1,100 feet, is the tallest building west of the Mississippi and the fifth tallest building in the USA. The Insanity ride is a mind-bending experience with a massive mechanical arm extending out 64 feet over the edge of the Stratosphere Tower at a height of over 900 feet. The ride will spin you and several other passengers in the open air at speeds of up to three ‘G’s. Definitely not a ride for the faint at heart! The Luxor Hotel houses the Titanic exhibit featuring more than 300 artifacts as well as breathtaking replicas from the famous ship. This exhibit brings history to life featuring gaming chips, passenger papers, decorative sections from 38
Titanic’s famous Grand Staircase, and personal pieces and passenger stories from that fateful night. You may want to rent a car and drive to downtown Las Vegas to take in the Fremont Street Experience offering free live entertainment, casinos in close proximity to one another, and a spectacular sound and light show. The Golden Nugget Hotel, located in the Fremont Street Experience, was originally built in 1946, making it one of the oldest casinos in the city. The Freemont Street Experience offers a very different more real feel than the Strip. If you want to look at cars, the Wynn Las Vegas hotel houses Ferraris and Massaris on display. The hotel gift shop has wide selection of souvenirs for purchase for the whole family. There are three unique and challenging golf courses among the 20 world-class golf courses located in Las Vegas. The Bali Hai Golf Club was opened in 2000 and is luxurious from top to bottom, inside and out. The stunning golf course is breathtaking with brilliant white sand bunkers and thousands of palm trees. The elegant Cili restaurant
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overlooks the course and is the perfect spot for a special occasion or just for a bite after the round. Royal Links Golf Club opened in 1998 and offers a unique experience from the moment players drive through the gates with the minutely detailed course and the castle style clubhouse. Desert Pines Golf Course opened in 1996. Nearly 4,000 mature pine trees, imported white sand and abundant water features make Desert Pines feel like a course cut right out of the Carolinas. Adventurous attractions in the surrounding areas include riding horses in the Red Rock Canyon, taking a jeep tour of the powerful and inspiring landscape of the Grand Canyon, touring Hoover Dam (one of the Seven Modern Engineering Wonders of the US) or white water rafting on Lake Mead. The never ending variety of attractions coupled with the warm and sunny climate of Las Vegas makes this city a perfect tourist destination. Whatever your reason for visiting Las Vegas whether business or pleasure, I believe you will come away impressed with the city that has lured performers from Elvis Presley to Frank Sinatra and most of the greats in the entertainment business for over the past forty years. About Janet For more than 20 years Janet has been handling travel arrangements for the auto industry. She specializes in corporate meetings, leisure vacations and cruises, group conventions and incentive travel. For more information about this article or to have Janet help you plan your next get away, contact Janet Maines & Associates, A Full Service Travel Agency, 206-7820576. Toll free: 866-294-8747. Email: janetmassociates@aol.com or on the web at www.jmtravelco.com.
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Customer Relations Training for Dealership Employees
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A thorough examination of the attitudes and practices in your dealership is necessary before you can institute an effective consumer relations program. A comprehensive consumer relations program that looks good on paper won’t work unless the underlying reasons for the complaints have been resolved. Complaints generally arise from unmet expectations and misunderstandings. Poor communication is usually the root of the problem. Communication starts with you. You must convey to your employees the dealership’s philosophy—its goals and its code of ethics. Central to this code is a commitment to serve customers fairly, honestly and courteously. One goal should be that no customer will leave your dealership with an unresolved problem. You must train your employees to practice your philosophy. One study found that 54 percent of the customers who reported complaints did not consider the first person they contacted helpful. Damage done by thoughtless employees is incalculable. “Consumer conscious” employees can do much to ensure that you will have satisfied, repeat customers. •
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Explain your goals, objectives, and customer relations policies to your employees. Outline this in a letter to all your employees and discuss it at regular staff meetings. Explain the whole customer relations picture and the importance of each employee’s role in it. Explain how an effective customer relations program will make the job of each employee easier because there will be fewer complaints, more satisfied customers, and a better working environment. Utilize your manufacturer’s training program or professional seminars to train key personnel in customer psychology and people handling. Integrate role playing in sales and service staff meetings to enable staff to react to trial situations. Make sure each department understands the policies and procedures of other dealership departments. Have managers sit in on meetings of other departments. Explain to your employees new laws, regulations, or actions taken by the manufacturer or government that affect your business or impact your customers. Hold informal sessions to discuss the strengths and weaknesses of your customer relations program. Orient new employees to your program and publicly recognize employees who have done an outstanding job with customer relations.
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