PSADA Summer 2012 by PSADA

The Puget Sound Dealer 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

BOARD OF DIRECTORS 2012 President Jim Morino Acura of Lynnwood 1st Vice President Sara Carter Carter Subaru, Shoreline 2nd Vice President Steve Klein Klein Honda, Everett 3rd Vice President Jim Walen Ford-Hyundai of Kirkland Trustee Position #1 Dan Wilder, Jr. Wilder Auto Center, Port Angeles Trustee Position #2 Marc Ikegami Doug’s Lynnwood Mazda, Doug’s Lynnwood Hyundai, Doug’s Northwest Cadillac Immediate Past President Jason Courter Honda Auto Center of Bellevue PSADA STAFF James R. Hammond Executive Director Linda Halverson Executive Assistant Susan Leonhardi Programs and Data Base Manager Michele Foley Office Assistant

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

A Message from the Editor

It Will All Work Out in the End;

If It Isn’t Working Out, Then It Is NOT the End Yet! All my professional life I have mentored college kids. It truly is a joy. One of my young men was trying to start a company. He was down and out because he’d hit road block after road block and was buying the story the world was selling him that he was a failure. How wrong he was! He was confusing failure with growth. He was actually doing very well. You see, life has everything to do with perspective – in other words, how you look at the world and all that it throws your way – both good and bad! Whether you are down and out about your love life, your family life, or your career, you have to realize that everything you do or encounter is laced with setbacks. Setbacks are disappointing, but they are not failures. Setbacks are things that don’t work. Setbacks help us learn and make us better. Life will always send you down many uncharted paths. Some of them may seem to be dead ends that leave you with no hope. But, they are really not dead ends. They teach you and guide you and give you understanding, perception and better ability to move forward. That’s why I say, not succeeding is not failure. It’s the primer to the pump that eventually hits the main oil vein that gives you the gusher you’ve been looking for. It takes time to hone experience. With the right perspective, you can do things others can’t. With an unwavering focus you can succeed at things others only dream about. But, the road is bumpy. You’ve probably already discovered that those around you don’t always believe what you do or even believe in what you do. It will always be difficult finding people that are of like nature as you, and who are dependable and trustworthy with your dreams. Everyone that has walked the road of life and has succeeded understands what I just said. It is frustrating and difficult getting resistance, backtalk and attitude from people. This can feel like failure, too, because it makes you feel like you’re on your own, pushing too hard, and that you should just plain quit because no one is following you. I’ve been accused by many people of chasing down rabbit holes, but, the fox never catches the rabbit unless he checks each hole. Just like life. The more holes you run down, the better you get at picking the ones you go down. So, you can’t let people ruin your dream. You have to keep your hopes, faith and dreams alive so you can continue building your future. I have found that I’ve never had any failures... I’ve had a whole lot of setbacks that felt like failures and that others called failures, but they made me into the leader I am today. That is part of the journey... an important part of the journey. It’s the part that makes you the amazing man or woman you are... with all of those brilliant, innovative, forward thinking ideas you have. I learned something recently from a film I saw. The actor said “It will all work out in the end. If it isn’t working out, then it isn’t the end yet.” This has become my personal motto. It isn’t the end yet! Remember, anything worth doing, is worth fighting for and doing. Great men move forward and say “Why not!” Failures ask, “Why?” James Hammond Executive Director

Message from the President - Jim Morino

City of Seattle Sick and Safe Leave Ordinance

Place Your Bets, or Try Your Luck! You Decide!

Siblings Sue Byers and Doug Byers - What’s Right for the Customer

Show Me How I’m Paid

The Velocity of Money and How it Impacts Home Loan Rates

Multi-Screen Madness: Combining Online and TV Advertising for Bigger Results

Warranty Parts Reimbursement Increase - Not Labor...Parts

Car Sales Show Rooms as Theatre

How NOT to Answer Your Company Phone Call

You Talk. We Listen. At Ryan Swanson, we connect with people on a human level. Thatâ&#x20AC;&#x2122;s why our approach to helping clients reach their goals is practical, straightforward and cost effective. Itâ&#x20AC;&#x2122;s our no-nonsense way of doing business that puts people first, like Brad Brotherton of Brotherton Cadillac.

Humanese Over Legalese.

206.464.4224 | www.ryanswansonlaw.com

Message from the President

Jim Morino Acura of Lynnwood

It’s Going to Be An Exceptional Auto Show This Year

For over 35 years we have always had a good Seattle Auto Show. It’s easy to take the Show for granted. Every year it comes and every year it goes. But good auto shows don’t happen accidentally. They take a year to plan. Auto manufacturers don’t automatically come back. Galleries of dozens of over–the-top exotics don’t magically appear and at most national auto shows they don’t. But they show up every year at the Seattle Auto Show and every automaker comes back every year over and over and over again. That says something about our auto show and something about PSADA and its well respected show management style. Auto manufacturer staff members repeatedly tell us that we are the highlight of their year because our show is so professional and so trouble-free. And that is no accident either. That is PSADA’s commitment to excellence. Our 2012 Seattle Auto Show will be no different – that is, from an excellence perspective. BUT, from a consumer perspective, we expect this year to be one of our best shows in history. To start with, our headliner is the Bugatti Veyron, being lent to us by our show partner, BarrettJackson. If that isn’t enough to get your engine going, how about the new McLaren MP4-12C Coupe? Of course, there is also the new Ferrari FF. And, we can’t forget the Maseratis, Aston Martins, Lotuses, Bentleys, Fiskers, Rolls, Porsches, Jaguars, and Lamborghinis. Add this to participation by all major automakers, and the continuously growing appetite of consumers for new cars – and we think we have a barnburner this year. We’re excited. This just might be the year you’ll want to come down and see what is going on. In closing, I want to thank our incredible corporate show sponsors – AutoTrader.com in Atlanta, State Farm Insurance National Headquarters, Boeing Employees Credit Union and the Seattle Times. Without these long time loyal sponsors, a whole lot of what we do wouldn’t be possible. So come down and see the Show. Jim Hammond and his team will be thrilled to see you.

City of Seattle Sick and Safe Leave Ordinance Understanding the New Mandates... Including Employee Paycheck Disclosures

By Rick Lentini Ryan, Swanson & Cleveland, PLLC

Adoption and Effective Date On September 12, 2011, the City of Seattle adopted an ordinance concerning paid sick leave and safe leave effective SEPTEMBER 1, 2012. The ordinance adds a new chapter 14.16 to the Seattle Municipal Code. Summary Beginning September 1, 2012, employees will accrue paid sick time and paid safe time according to a schedule based upon the number of workers employed (one hour per 30 or 40 hours worked). Employers of 5-49 workers must permit at least five paid sick/safe days per calendar year; employers of 50-249 workers must provide at least seven paid sick/safe days per calendar year; and employers of 250 or more workers must provide at least nine paid sick/safe days per calendar year. The Seattle Office for Civil Rights will create required notices and posters. Qualified Employees The ordinance applies to workers (other than work-study workers) who perform their work in Seattle, and to those who perform at least 240 hours of occasional work in Seattle. Employer An Employer is any person who has one or more employees, and any persons acting in the interest of such Employer. NonCity of Seattle Governments and their agencies are excluded.

The ordinance shall not apply to Tier 1 or Tier 2 Employers until 2 years following the hiring of their first employee. Family or Household Members For purposes of SICK leave, Family Member carries the same definition as in the Washington Family Care Act, RCW 49.12.265 and .903, and includes children under 18 or disabled; spouses/domestic partners; grandparents; parents; and parentsin-law. For purposes of SAFE leave, Family or Household Member carries the same definition as in the RCW 49.76.020, and includes spouses/domestic partners; former spouses/partners; persons with a child in common; adult persons related by blood or marriage; adult persons who have resided together; persons 16 years or older who have resided together or have had a dating relationship; and persons who have a biological or legal parent-child relationship (including stepparent and grandparent). Accrual of Paid Sick Time or Paid Safe Time Accrual begins on 9/1/2012, or afterward on commencement of employment. Use of sick/safe leave available beginning on 180th calendar day after commencement of employment.

Tier 1 employer: 4-49 workers.

Tier 1 and Tier 2: One hour of paid time for every 40 hrs. worked.

Tier 2 employer: 50-249 workers.

Tier 3: One hour of paid time for every 30 hrs. worked.

Tier 3 employer: 250 or more workers.

For exempt employees, time accrues based upon hours worked in a normal work week, and need not exceed 40 hours/week. 9

Reasons for Use Paid Sick Time may be used for: • The employee’s own mental or physical illness, injury or health condition, or to accommodate the need for diagnosis, treatment or preventative care; or •

To care for a family member’s mental or physical illness, injury or health condition, or to accommodate the need for diagnosis, treatment or preventative care.

Paid Safe Time may be used for: • When the work site is closed by a public official to limit exposure to an infectious agent, biological toxin or hazardous material;

Each payroll date, employers must provide in writing the updated amount of paid time available to each employee. Any reasonable system is acceptable, such as a payroll statement or an online system.

•

To care for a child whose school has been closed for such a reason; or

•

For a reason related to domestic violence, sexual assault or stalking as described in RCW 49.76.030

To seek legal assistance or remedies for the employee or family member victim;  To seek treatment for the employee or family member victim;  To obtain social services for the employee or family member victim;  To obtain mental health counseling for the employee or family member victim; or  To participate in safety planning or relocation for the employee or family members. Employees should provide at least 10 days written notice of foreseeable leaves, and other notice as soon as practicable, complying with the employer’s customary requirements which do not interfere with the purpose for the leave. Employees must make reasonable effort to schedule leave in a manner that does not unduly disrupt the employer’s operations. By mutual agreement only, an employee may work additional hours or shifts instead of using paid sick/safe time. 10

Documentation The employer may require reasonable documentation for use of paid sick leave exceeding three consecutive days. A health care provider’s note that the time off is necessary is sufficient. The employer may not require an explanation of the nature of the illness. For an employee not offered health insurance by the employer, the employer must pay half the cost of out-of-pocket expense incurred in obtaining the employer-requested documentation. For paid safe leave, the employer may require the same documentation described in RCW 49.76.

Each payroll date, employers must provide in writing the updated amount of paid time available to each employee. Any reasonable system is acceptable, such as a payroll statement or an online system. Records of hours worked, time accrued and time taken must be maintained for two years. Medical records must be kept confidential and maintained separate from usual personnel files. Maximum Use in Calendar Year Tier 1: need not allow use of combined sick/safe leave exceeding 40 hours in a calendar year. Tier 2: need not allow use of combined sick/safe leave exceeding 56 hours in a calendar year. Tier 3: need not allow use of combined sick/safe leave exceeding 72 hours in a calendar year. Carryover Some Sick/safe time carries over to next calendar year in the following minimum amounts: Tier 1 40 hrs.; Tier 2 56 hrs.; Tier 3 72 hrs. PTO (Paid Time Off) Policies Tier 1 and Tier 2 employers are not required to provide any additional sick/safe leave, provided their policies comply with the purposes, conditions, accrual, amounts and carryover provisions of the ordinance applicable to employers of their size. Likewise, Tier 3 employers are not required to provide any

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

additional sick/safe leave, provided their policies comply with the purposes, conditions, accrual, amounts and carryover provisions of the ordinance applicable to employers of their size; with the additional requirement that they allow calendar year carryover of at least 108 hours. Termination of Employment The ordinance does not require any compensation for accrued but unused sick/safe time upon termination of the employment relationship. An employee rehired within 7 months is entitled to reinstatement of past accrued time. Interference and Retaliation Prohibited Employers are prohibited from denying or interfering with the exercise of rights under the ordinance, and from taking retaliatory adverse action against an employee who has exercised such rights. Employers may not count paid sick/safe leave as an absence that may lead to adverse action. Notice and Posting Employers are required to give employees notice of their rights to paid sick/safe leave; the amount and terms of use; that retaliation is prohibited; and the right to file a complaint or civil action if rights are denied or there is retaliation. The Seattle Office for Civil Rights will create a poster and model notice. Display of the poster in a conspicuous place, or including the notice in an employee handbook, will satisfy the notice requirement. Willful violation of notice and posting requirements subjects employers to a $125 fine for the first violation and $250 for subsequent violations. Enforcement The ordinance is enforced by the Seattle Office for Civil Rights. Charges must be filed within 180 days of the violation. A detailed investigation and determination process is delineated. Appeals are taken to a Hearing Examiner or panel, which may include members of the Seattle Human Rights Commission. Remedies may include hiring, reinstatement, upgrading with or without back pay, lost benefits, attorneysâ&#x20AC;&#x2122; fees, admittance or restoration to union membership, and such action as could be ordered by a court, except that damages for humiliation and mental suffering shall 12

not exceed $10,000. Back pay shall not accrue before 2 years prior to the filing of a charge. A civil fine of up to $500 may be imposed. Confidentiality and Nondisclosure Information provided by employees in support of a request for leave shall be held confidential and only disclosed as requested or consented to by the employee; as ordered by a court or agency; or as otherwise required by federal or state law. Waiver Individual employees may not waive any provisions of this ordinance. A union collective bargaining agreement may expressly waive any provisions. For more information on this topic please contact Rick Lentini at Ryan Swanson and Cleveland at 206-654-2231.

Place your bets, or try your luck! You decide!

Implementing an inventory strategy that you win a greater percentage of the time

By Scott Dreisbach

Come one, come all, place your bets, try your luck. This is something you might have heard before and is exactly what all casino games are trying to get you to do. We have all heard the phrase, “you can’t win if you don’t bet” and to some extent, that is true. Some of us have also learned, over time, that you can also increase your odds of winning by “hedging” your bets, and not betting (or at the very least, limiting your bets) on the games that have the greatest “house advantage.” How would you like it if you could develop and implement a strategy that would enable you to win a greater percentage of the time? A no-brainer, right? If you are serious about increasing your odds, read on. If not, turn the page. We are now well into the 2013 model selling season and each month most of us are asked to make new vehicle purchase decisions that will carry us into the foreseeable future. In other words, “place your bets” by ordering new vehicle inventory. While none of us have that proverbial “crystal ball,” we all do have access to data that will allow us to “hedge” our bets. I gave a lot of thought to the gambling analogy when considering this article, and I finally came to the conclusion that all of us in this retail Automobile business are gamblers, whether we like to admit it or not. We make “bets” (inventory decisions) every day. Some of our bets win, and some do not. The entire premise of precise new vehicle inventory management helps to allow us to increase our “winning percentage.” 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 13

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 purchase decisions? If not, why not? Many of the previous articles I have written have talked about the key indicators that are the backbone of precise vehicle inventory management. These include, but are not limited to, specific model number; option packages; color, trim, individual options; average age to retail; average gross per unit; average age of inventory; seasonality, and special events. I included

Refining your inventory management systems will take time and work to get running. Be patient. It will be worth the effort!

the formulas, displayed examples, and talked about how to assemble the information in a format that your managers could use. In many cases, I also made available various worksheets that I would send via email upon request. You can review all of my previous articles at www.psada.com under the Dealer Magazine tab. The proverbial bottom line is this: if you want to increase your bottom line, (and who doesn’t) it can be done by reexamining and re-structuring the way you make new and used vehicle purchasing decisions. The idea of any good vehicle inventory management system is to quickly give information to management that will help accomplish the following: 1. To continually phase in what we need and phase out what we do not. 2. Make it easy to read, use and understand. 3. Recommend some specific action that needs to be taken. 4. Make decisions based on actual data, not “gut feel.” Conclusion As mentioned at the beginning of this series, there is tremendous upside potential to implementing an inventory management system for both your new and used vehicle departments. By increasing your “winning percentage” the following is a partial list of benefits that you can enjoy: 14

• • • • • • • • • • • • • • • • • • • • • • • •

Earn a 5% bottom line “Release” frozen capital Increase GP PVR Enjoy month after month floor plan interest credits 60 day supply of new vehicles Painlessly reduce variable selling expense Continuous training and system implementation Feedback and accountability Significantly improve market penetration Easily increase closing ratios Group reports for multiple locations with different demographics Reduce advertising expense Significantly impact return on investment Improve CSI Deliver more units at higher grosses Complete inventory turn 6+ times per year-new Know your highest producing color, package code, engine, etc Use science and technology to manage inventory Have an inventory stocking guide by specific model # Eliminate “gut feel” in inventory decisions Inventory decisions become totally objective Eliminate inventory being “pushed on you” Know exactly what to advertise and when Acquire inventory to match current market demands

I know that building an inventory management system can be a daunting task. It may seem insurmountable at first. I have been working at refining vehicle inventory management systems for over 20 years and am always finding ways to improve the process. It will take time and work to get it up and running. Be patient. It will be worth the effort. If all else fails, there are a few good vehicle inventory management systems available from which to choose. I can’t name them here, but if you would like to talk about it, simply send me an email. Additionally, I have developed a “Revenue Impact Calculator” that will allow you to plug in your own real numbers and will give you an idea of how much money is “on the table” for you to pick up by using a precise vehicle inventory management system. I will send you the link upon request. Simply drop me an email requesting the Revenue Impact Calculator. I wish you the best…Good Luck!! Scott Dreisbach is vice president of Valuinsight, Inc. sdrize@valuinsight.com 561 368 7810 X 108 Direct www.valuinsight.com

Photo by Adam Buchanan

By Craig Chastain

Siblings Sue Byers Doug Byers

What’s Right for the Customer

Stand in the showroom of Bob Byers Ravenna Volvo and you’ll quickly feel it. The history. The loyalty. The commitment.

The tradition of excellence begun by Bob Byers and continued today by his son and daughter - Doug and Sue – is present in every corner of the venerable store in Seattle’s Ravenna neighborhood. In an age of mega-auto malls, high-tech signage and massive floor space, the Byers team has built an extended family of loyal customers and a reputation that extends far beyond the historic dealership at Northeast 55th and 27th. “Our dad grew this business based on integrity and exceptional service,” says Sue. “No matter what the situation was, his first question was always ‘what’s right for the customer?’” A customer-focused business model has always been a vital part in every step in the Byers story, from Bob’s beginnings as a lot boy, to his investment in Ravenna in 1972, to his legacy of the three successful locations Doug and Sue operate today. Along the way, he was universally recognized as an innovative and respected businessman, a dedicated and tireless community servant, a beloved employer and family man. “When Sue and I bought the business in 2002, our dad was one of the true leaders in our business,” says Doug. “He left big shoes to fill.”

Thankfully, Bob didn’t walk too far from the action. Even in retirement, his advice and counsel was always available to siblings who occasionally disagreed. “My brother and I are just 16 months apart but we’re very different personalities,” says Sue. “When we’d have a difference of opinion we would both dig in our heels and then call on our dad to be the tie-breaker.” “One time we were completely on opposite sides,” she says, “so I called Dad to break the tie. While I was pleading my case, Doug called in on the other line. Dad heard us both out and then gave his opinion which was, as usual, the right one.” “Today we still say ‘what would Dad do?’ He’s still our tiebreaker.” As it has turned out, Doug and Sue’s divergent skill sets have complimented and supported their mutual desire to build on the Byers legacy. At one time they both wanted to be lawyers, yet they took distinctly different educational paths. “I started in the car business washing cars at Goodfellows where my dad worked,” says Doug. “I remember playing on the lube rack and thinking how fun the dealership was. When he took over at Ravenna he had me working and learning in every department.”

Bob had set an example by logging more than 40 years of uninterrupted service through Kiwanis. Doug and Sue have always shared Bob’s passion for community service: along with their mother Dorothy, they ardently support the work of Seattle Children’s Hospital, Research and Foundation. Like their father, they’re also die-hard Husky fans with a long-term commitment (37 years) to athletics through programs like “UW Car Coaches.” With his children’s demonstrated commitment to the community and their extensive, hands-on education in the car business, Bob Byers passed the batons of Ravenna Volvo, Seattle Volvo and Volvo Certified Pre-owned in Lake City to Sue and Doug in 2002. The next decade would present opportunities and challenges that none of them could have anticipated.

Photo by Adam Buchanan

“Our dad was a great strategist and planner, but even he couldn’t have foreseen what happened to the economy a few years ago,” says Sue. “Through all the challenges, he never stopped encouraging us to keep plugging away and to always do the right thing by our customers and our team.”

In the early eighties Doug immersed himself in the Northwood University auto program, then the NADA Dealer Academy. With both academic and hands-on experience he became the used car manager in 1989. Along the way Doug and wife Patti welcomed daughter Natalie and son Robert Alex. At about the same time, Sue was working at Nordstrom and assessing how to best use her University of Washington degree. Always good with numbers, she accepted Bob’s offer to take over as office manager, a post that was held at the time by her older brother Mike. Siblings Mike and Kathy subsequently took paths away from the dealership while Doug and Sue became firmly planted in the family business. Over the next dozen years there was frequent talk of succession, and in 2002 the discussion of a buy-sell transition got serious. 18

That commitment has manifested itself in myriad ways. A customer base that will drive from around the Northwest for the Byers style of sales and service. A loyal staff that stays and grows because of the rewards and satisfaction of work well done. An international car-maker that has entrusted their vehicles to the Byers team for more than 50 years. Bob Byers passed away in the spring of 2011, leaving to his children and extended family of colleagues and customers a world-class dealership filled with memories, successes and promise. That same year marked the 70th anniversary of the Ravenna location’s place in the car business. “There was a time in the early 1980’s when Volvo asked us to move from the Ravenna store to some place with more traffic, visibility and potential business,” says Doug Byers. “Our dad chose to stay in the neighborhood that had helped make us successful.” Then, as now, it was a decision that was right…for the customer.

When “That will never happen to me,” happens.

We’re ready to help. There’s never a good time for an accident to happen. But when it does, you can count on State Farm® to be there quickly so you can get your life back to normal. GET TO A BETTER STATE. CALL AN AGENT OR VISIT US ONLINE TODAY.

Find your local agent at www.goodneighborinfo.com

statefarm.com® 1101206

State Farm, Home Office, Bloomington, IL 19

show me how i’m paid and…

By John Strom

What work does your pay plan encourage your people to do?

This is a follow-up to my last column about “Compensation: The “Perfect Pay Plan.” It provides some additional thoughts about pay…and how it can help or hinder your achievement of desired business results. Let’s start by completing the title – “Show me how I’m paid and I’ll show you how I’ll work.” My guess is you’ve heard that before and given some thought to what it means… People tend to “work their pay plan” – simple as that. So the question is… What work does your pay plan encourage your people to do? Too many automotive pay plans focus on the wrong results. They encourage people to work for results that aren’t what we’re really looking for. Take customer satisfaction, for example. Too many pay plans pay for good surveys, yet that’s not the outcome we’re really looking for, is it? What we really want is more repeat and referral customers! We think that because a customer says they’re 100% satisfied on a survey, they’ll come back (… and recommend us to others). More on this later, but for now let’s look at how we can pay to get more repeat and referral customers, not just better surveys. Pay more for Repeat/Referral business: How about paying more for repeat and referral customers and less for new customers? When a sales consultant, for example, sells a vehicle to one of their repeat customers or someone referred by one of their customers – how about paying a larger percentage of the gross? And, in order to keep costs

in hand, pay less for a new customer (they just waited on customer you bought in through your advertising). Say you want to average 25% commission – pay 27% for R&R sales, 23% for new sales. Do you think your folks will work harder for those higher-commission R&R sales? You bet! Pay for Positive Comments using the Team Member’s Name: And shift your “pay for satisfaction” one step closer to the above by using “customer satisfaction” pay to reward “specific positive customer comments” – a positive comment using the team member’s name – rather than simply a good survey. How much more likely is a customer to repeat or refer if they write, “Henry is a fantastic sales consultant. He did a really great job understanding my needs and lining me up with the car that best met them. He’s great!” Much stronger than a 100% survey – and someone Henry really needs to stay in touch with to get referrals and their repeat business. Use your “spiff” money to encourage more of these “++” comments. (BTW…if you have people whose customers rarely/never write such comments, they really aren’t doing the ‘whole job’ for you, are they? They’re making this sale, but not really creating a customer experience that leads to repeat and referral business.) Customer Satisfaction vs. Customer Engagement The Gallup Organization has shown clearly through their extensive customer research that “satisfying customers” is not enough to ensure their continued 21

business. You must move one level up, creating “engaged years later they still feel that you “did right by them.” Their customers.” What’s the difference? – engaged customers feel experience with you was truly “win-win.” stronger about your organization because of their experience with it. Their expectations have been more than simply Level 4: Advice – customers feel the closest bond to met (100% survey), they’ve been exceeded. They’ve had a organizations and people that help them learn. You share “positively exceptional” experience that encourages them to knowledge and expertise with them that helps them not only continue to do business with you. And if they’ve had many get what they want but feel good about it. They have greater such experiences, they’ll go further and tell others, even confidence and comfort with their decision because you helped encouraging them to go to you for their automotive needs! them with good advice. This is what it takes to be “their guy They become your advocates! That’s what we’re really looking in the car business” – someone they know they can trust to for, isn’t it? Do your know what’s right pay plans pay for this or for them (…and their something short of this? family, friends and Do your pay plans pay for performance at Over the years, associates)! BOTH the Accuracy and Availability levels Gallup has interviewed When team AND Partnership and Advice levels? Do you over a billion customers, members perform trying to identify what at this level, they ask them merely to prevent dissatisfaction OR customers really want. turn customers (for do you encourage actions that drive advocacy? They’ve identified four this transaction) hierarchical levels of into clients (for customer expectations all automotive (lower level expectations transactions). They must be met before higher level ones). successfully turn prospects into advocates – and benefit from the increased repeat and referral business that comes from this. Level 1: Accuracy – customers expect to get what they came So, do your pay plans pay for performance at BOTH the for, simple as that. They bought the car they wanted/needed for Accuracy and Availability levels AND Partnership and Advice a reasonable price in a way they were comfortable with. Their levels? Do you ask them merely to prevent dissatisfaction OR vehicle got fixed, on time at the expected cost. We kept our do you encourage actions that drive advocacy? promises; we did our job. It doesn’t matter how friendly the employees are, if the company consistently fails the accuracy Do your pay plans meet all 10 Compensation Principles? test, then customers defect. Last time I shared 10 Principles of Effective Compensation Level 2: Availability – customers expect you to be readily and encouraged you to examine your pay plans in light of available when they need what you provide – easy to find, them. Rarely have I found dealership pay plans that meet all easily accessible, easy to do business with, hassle-free. I 10 Principles. Most fall down in multiple areas. If you haven’t call, you answer. I send a text or email, you reply in a timely done so, go back and use the checklist. Taking time to do this manner. and working to develop pay plans that “focus on the results Importantly, achieving these first two can only prevent you really want“ could very likely be THE most important dissatisfaction. If you do your work accurately and are available action you take this year to improve your business. It’s time when I need you, I don’t sit back and smile in admiration. to take a more progressive approach to compensation! Need Accuracy and availability is demanded and expected. As help? Call me – 775-848-8384. Gallup says, on the journey from prospect to advocate, your customers are only halfway there. John Strom has been helping retail automotive managers improve their performance for over 25 years. He has held Level 3: Partnership – customers want you to listen to them, a number of management positions in both single-point and to be responsive to them, to make them feel as if they are on multiple franchise operations, including General Manager. the same side of the fence as you. I can best describe this in His company, Strom & Associates, is a member of the our business as “helping a customer buy” rather than “selling Performance Development Group. To learn more about their them.” Through your actions your customer sees you as truly services, visit www.perdevgrp.com. helping them get what they need and want. The key to this is that your actions must stand the test of time – days, weeks, 22

This Is Maui. This Is Makena. The New Makena.

Just beyond Wailea is the beautified Makena Beach & Golf Resort, with its new rooms and suites, ocean vistas and service with aloha. Tennis, beach activities, outdoor spa treatments, magnificent beaches and the finest golf to be played on the island of Maui. Experience the new Makena at value rates which include the resort fee and breakfast for two daily. Truly Maui at its best. For Reservations please contact 1.800.321.MAUI (6284) or visit www.makenaresortmaui.com, or call your travel agent.

5400 Makena Alanui, Wailea-Makena, Maui, Hawaii 96753 www.makenaresortmaui.com

For more information, please scan this QR code.

the Velocity of Money and How it Impacts Home Loan Rates? By Julie Wallerich The Legacy Group

If you’ve been watching the economic news, you’ve probably noticed that market experts and traders have been keeping a close eye on the Commerce Department’s Personal Spending and Personal Income reports. Obviously, those reports provide insight into the health of our economy, but did you know they also influence home loan rates? That’s right, personal spending can actually influence the interest rates that are available when you purchase or refinance a home. Here’s why. It has to do with something called the velocity of money. Even though the government keeps pumping money into the system, nothing happens until that money is spent or lent – and passes from one hand to another or one business to another. The speed at which this money passes between parties is called the velocity of money. With the job market still very sluggish, consumers aren’t spending much money these days, and businesses are still reluctant to spend money to make investments in their business. With the present velocity at low levels, inflation remains subdued and that’s good for home loan rates. That’s because rates are tied to Mortgage Bonds and inflation is the archenemy of Bonds, so low inflation is good for Bonds and rates. However, once velocity increases, the excess money in the system will 24

cause inflation – which is bad for rates, since even the slightest scent of inflation can cause home loan rates to worsen. While we certainly want to see better economic recovery news in the near future, we have to remember that there’s an inverse relationship between good economic news and Bonds and home loan rates. Weak economic news normally causes money to flow out of Stocks and into Bonds, which helps Bonds and home loan rates improve. Strong economic news, on the other hand, normally has the opposite result. Currently, home loan rates are at a historically low level, but that situation won’t last forever. That means now is an ideal time to purchase a home or refinance before the velocity of money – and rates – change. If you or anyone you know would like to learn more about the current economic situation and how to take advantage of historically low home loan rates, then please contact me. Julie Wallerich is affiliated with The Legacy Group, a Licensed Broker, WA Department of Real Estate. To contact Julie call 253-221-2022 juliew@legacyg.com

Multi-Screen Madness

Combining Online and TV Advertising for By Jeff Kent Business Development Manager Comcast Spotlight – NW Region

Who’s Going Online? Here’s an eye-opening exercise. Stop what you’re doing several times throughout the day and pay attention to how the people around you are using media. It will quickly become obvious that almost everyone is online. People of all ages are using their smartphones, tablets and laptops in just about every situation you can imagine to watch video and access their favorite websites. At restaurants, on park benches, in business lobbies, walking down the sidewalk, riding in cars or on public transportation – no matter where they are, or where they’re headed, the web is their real destination. As an automobile advertiser, this trend is your opportunity to access desirable consumers and drive business to your dealership, now and into the future. Car buyers and other consumers are spending massive amounts of time online. Last year over 60% of media usage time across the U.S. was spent watching TV and using the internet. That breaks down to nearly three hours per day online, and at least 4.5 hours per day watching some form of video entertainment.1 This trend is even more prevalent in Seattle and Olympia, which are the two “Most Wired Cities in America” according to CNBC and Forbes. It’s no surprise that residents here are 41% more likely than the rest of the country to spend at least 20 hours per week online.2 Who’s Watching Video Online? Consumers are not just going online to read and play; they’re going online to watch video. You probably do this often, and your kids do it all the time. Auto buyers are no exception.

Bigger Results

The explosion of YouTube is just one example of the popularity of video on the internet. Founded in 2005, this powerhouse website now delivers more than 4 billion video views per day. Much of that growth has come recently, increasing 150% in two years’ time.3

Each month, consumers watch an average of 4.5 hours of video on computers and 4.3 hours of video on smartphones. It’s not just the tech-savvy kids who are doing this, either. Over two-thirds fall into the desirable 25-64 age demographic.4 This is your core consumer – people who are shopping for and buying automobiles. With the growth of handheld devices and laptop computers making it so easy to access video anywhere, it’s tempting to assume that television viewership is down. Nothing could be further from the truth. In fact, TV con-

sumption is on the rise and viewers are watching a whopping 146 hours of TV per month, on average.5 Multi-Screen Viewing Habits If you want to see how seamlessly TV and online work together, take a look at your own family. Chances are you are all going online regularly. Most likely you are also watching television at the same time. Studies show that three-quarters of all consumers use both TV and online simultaneously – and 9 out of 10 do so at least once per week.6 This is especially true for the rapidly growing population of tablet owners – 45% of them report using their tablets while watching television on a daily basis.7 This growing trend offers advertisers a great opportunity to reach consumers more effectively than ever before. The multiscreen approach is perfect for auto dealers who already have TV commercials. Putting those same commercials online is one of the smartest media moves a dealer can make.

watching the game. Among tablet users who are watching TV, many are doing something online at the same time, such as the 34% checking sports scores, 37% looking up information related to the program they’re watching, and 27% conducting research about a product they saw advertised. That product could be your dealership and the cars you sell. Imagine how powerful it can be for that viewer to see your commercial on TV, and moments later see your banner ad online. When they click through, they see your video commercial again, and end up at your website. Your dealership becomes top of mind, and that consumer is well on his way to buying a car from you. Looking Toward the Future With the dominant amount of media time spent watching TV and going online, and the rapid acceleration of media multitaskers, the key to successful auto advertising is pairing TV and online. When you align your marketing goals and media spend with the multi-screen generation’s screens of choice, you’re taking a step toward the future by engaging car buyers in new places, on new devices, and on their new terms.

Multi-Screen Auto Advertising The key to successful auto advertising in today’s multi-screen environment is to have your ad in both places and take advantage of the fact that people are watching massive amounts of video online. For auto dealers with existing commercials, it’s a no-brainer to buy advertising time on both screens BRAND RECALL using the video you have already Television Only created. This approach increases the Television and Online Provide a 48% Increase chance your message will be seen – MESSAGE RECALL often more than once – and that means Television Only people are more likely to remember your dealership and the product you’re Television and Online Provide a 77% Increase advertising. In fact, brand recall increases 48% and message recall jumps a staggering 77% when you use TV and online together.8 Source: Nielsen. Google Cross-Platform Ad Effectiveness Study 2011. *Multiplatform = Ad In the car buying process, 90% of Exposure on PC, Phone & Tablet auto shoppers start online. The average buyer visits 18 websites during the pur1 chase cycle. Obviously, you have many opportunities to reach eMarketer, Dec 2011 2 FCC, 2011, as reported by http://www.cnbc.com/id/43256184/America_s_Most_Wired_ your customers online. Add to that the realization that 80% of Cities 3 Tech Crunch, Sarah Perez, January 2012 car shoppers use online video, 52% find it “most useful” in the 4 Nielsen Company, Cross-Platform Report, Q3 2011 research process, and 30% were “activated” by it – there is no 5 Nielsen Company, Cross-Platform Report, Q3 2011 6 doubt that online video advertising works.9 Yahoo, Survey of Nielsen Convergence Panel, 2010 7 Nielsen Mobile Connected Device Report, Q4 2011 Dealers can also tap into the powerhouse world of sports to 8 Nielsen, Google Cross-Platform Ad Effectiveness Study 2011 (Multiplatform = ad exposure on PC, phone & tablet) reach desired customers, using both TV and online advertising. 9 Digital Dealer Conference, 2012 In the Puget Sound region, 3 million people watch sports on TV. 10 Scarborough, Seattle-Tacoma DMA, Mar 2010-Feb 2011 That includes 87% of the local population who plan to purchase a vehicle soon.10 Those same people are online while they are

Benefits of Advertising on Television and Online

Multi-Screen Advertising Means Business Message recall increases 77% when you reach people across multiple screens.

Your customers are interacting with media on multiple screens, in a multitude of formats. Reach all of them effectively and efficiently by advertising with Comcast Spotlight.

To learn more about multi-screen advertising contact Jeff Kent. 206-270-4748

jeffrey_kent@cable.comcast.com

www.comcastspotlight.com Source: Nielsen. Google Cross-Platform Ad Effectiveness Study 2011. *Multiplatform = Ad Exposure on PC, Phone & Tablet

Warranty Parts Reimbursement Increase Not Labor… PARTS

By Mike Kilchenstein Armada Dealer Solutions

Did you know that, despite what your dealer agreement may say, dealers in most states are entitled to be reimbursed for warranty work at mark-ups equal to or greater than their customer pay rates, otherwise known as the “retail rate.” You say, yes? We hear that a lot. It is a rare dealer who is not either religiously submitting for their annual labor rate increase, or participating in their factory “auto-increase” programs. That battle was waged years ago and virtually every state has statutes entitling dealers to reasonable compensation for warranty labor. What many dealers, even sophisticated ones, don’t realize is that those statutes have continued to evolve and “warranty work” as defined by most state statutes doesn’t just mean your labor rate any more. In most states, “warranty work” also pertains to your warranty parts reimbursement rate. Let me tell you. I have been an independent professional salesman for 30 plus years and focused on the auto dealer “vertical” for the last 15. When my “fixed ops professor” initially introduced me to this concept it went right over my head. But it started to percolate… and grow louder… and then bands started playing and fireworks started firing in my brain. I was certain that I had found “the Holy Grail” of sales and marketing! The math was staggering. Depending on the warranty volume, even a small store was leaving thousands of annual gross profit dollars on the table. A single large volume store could literally be sitting on a million dollars or more per year in untapped profit. I called my “professor” back and asked him incredulously…“So, what you are telling me is that all a dealer needs to do here is follow their statute and ask their factory for the money? Are you kidding me? Found money? This is going to be like shooting fish in a barrel!” How could a dealer turn down such an entitlement? Little did I know... I had a lot to learn. So dealers are entitled and all they have to do is ask? Why

Yes, it can be done, and the profit gain is quite uplifting. hasn’t every dealer in the country already done this? The main reason, I’m sad to report, is concern over factory retribution. Understandably, dealers are sensitive to potential factory “reactions” that might result from “redistributing” revenues. Concerns of more frequent warranty and incentive audits or mysterious allocation “issues” are most common. Factories and their representatives are frank in their communications to dealers regarding uplift requests. Their perspective can be summed up by this quote from an actual factory response to a dealer’s increase submission… “It (an increased parts reimbursement mark up) would… impose economically unwarranted cost into the distribution system that will ultimately disadvantage both XXXXX (the factory) and its dealers.” Do you think they want to keep the money? Of course! But let’s face it -factory protestations or not – audits are going to happen for any number of reasons. Most state statutes prohibit factory retribution for any reason. Dealers who run a “clean shop” have little to worry about with audits. Dealers who are concerned should probably be getting “stress mitigation” advice from a consultant and taking advantage of a quality warranty claims service. Thankfully, dealer perceptions of factory “retribution” being triggered by a successful warranty uplift submission are not based on reality. So, are there legitimate reasons for a dealer to opt out of their statutory entitlement to this money? There are two. First – If they are actively seeking franchise opportunities from the factory. Second – If they are in the process of selling their business. Obviously, it makes no sense to ruffle factory feathers under those circumstances. But, otherwise? For huge numbers of dealers, both large and small, there really is no excuse for leaving their money “on the table.” For more information you can contact Mike at: info@dealeruplift.com 29

Car Sales Show Rooms as Theatre 30

By Neal Golden-Lekwa Calbert Group Consulting

Did you ever think of our dealership sales lot and sales room as a Theatre? I have, and it’s one of the ways I spend my life after pioneering (‘bitter, burned’) gourmet coffees. In 1969 I was in a mail order, Gourmet ‘Coffees of the World’ with SBC’s co-founder, Dave Stuart. In the 1970s, I founded Scandia Down European Goose-Down Comforters to Americans. I’m proud to have been a Top 100 franchiser, and to have had Frank Carney, pioneer and founder of Pizza Hut, on the board in 1981. Starbucks’ Theatre Concept Can Work in Dealerships I recall reading in ‘Pour Your Heart Into It,’ Starbuck’s founder and CEO, Howard Schultz’s biographical account of founding Starbucks, where he refers to coffee sales as done his way, which he describes as ‘Theatre’. In Schultz’ Theatre, in return for the hand-made staging and presentation, where you still have to practically mortgage your house to buy a cup, you watch the coffee lovingly prepared by a ‘barista’ and, then, you receive your trophy cup of precisely made, ‘burned, bitter’ brew. The showroom in Starbucks, a place for seeing and being seen, is also Theatre. The checkout desk, where they speak Italian, and expect you to say, ‘Venti,’ is Theatre, as well. Even their use of tall, to mean ‘small’ in cup size, is Theatre. And, people buy it! Today, I work with top pioneers and help first adopter auto dealers perfect their sense of Theatre to optimize auto sales. I help them appoint their missing or mis-directed, or inefficient accoutrements that go into their Theatre. It’s been as much fun and enlightening as my last stint working with five-star resort owners in Mexico to optimize their marketing. I’ve come to believe that setting up auto Theatre in a dealership is as much an art as a science. It involves science

and engineering to hold a customer and their family captive for 30 minutes, when they do come in, without locking the doors, until a close is made. That’s when the sought-after, show stopper presentation, resulting from preparing a Theatre, pays off. Objectively looking at the dealership and all of its elements as a Theatre set, which is what I’m paid to do, I evaluate the entire scene from start to end. Viewing the car lot, literally, as a Theatre, generally nestled among other competing car dealerships with their Theatres on ‘Auto Row,’ makes my job explicitly clear. My job is to make my clients’ Theatre, and currentrunning show – with whatever models or specials they happen to be running – literally, the ‘Best and LongestRunning Show” on the “Great Broad (Auto) Way”. We put our client’s brand on a fully-optimized pedestal so their passing and stop-in traffic experience a fullymaximized show. How Does a Raging Lime Gorilla on Your Roof Sell Cars? Some of the things I run across working with auto dealers from my home base in the Northwest, all the way to Florida, turn out to be downright amusing. I’ve yet to decode and, frankly, understand entirely, how a twenty-foot, fierce-looking, blow-up lime gorilla atop a dealership in Sebring, Florida, triggers action or gets the salivating juices of a customer to flow to trigger a $30 - $50,000 high-technology purchase. But, then, maybe it is little Johnny, sitting in his rider-seat in the back of the car, screaming, “Daddy, stop the old jalopy and buy a new car or the gorilla will get me!” And, if the gorilla ‘don’t get ‘em,’ as Johnny says, maybe the blue heliumfilled balloons rising skywards on the aerials and the opened hoods will draw them in. If Johnny can’t make daddy stop the jalopy to shop cars, Suzy can get him to stop for the free balloon. 31

By Victoria Wenick The Seattle Times

ThE righT AdviCE mAy BE CloSEr ThAn iT APPEArS.

As you wait for the economy to recover, you donâ&#x20AC;&#x2122;t have to face uncertainty alone. We work with hundreds of dealerships, helping them tackle challenges and identify opportunities. When every financial decision is an important one, having a trusted advisor is crucial. Discover how we can help you move your business in the right direction.

Everett | Seattle | Tacoma (866) mossadams | dealerservices@mossadams.com w w w. m o s s a d a m s . c o m

Certified Public Accountants | Business Consultants

Acumen. Agility. Answers.

Of course, I mainly jest! But, some of the things we do to sell cars, in my humble opinion, as a marketing consultant, go way too far beyond the already set in-line, the in-house, ‘connect-the-dots’ stratagem that auto manufacturers have set up. They have engineered a process that takes mommy’s and daddy’s, even Johnny’s and Suzy’s, response from A-Z (‘Z’ being the sale close). Or, might I suggest, the manufacturers’ ads that almost take them there. In the early stages of advertising and promo, manufacturer-prescribed scenarios are as well-engineered and oiled as the autos themselves. Ads of the 50’s and 60’s Are Engaging Auto Theatre The car ads that the car manufacturers have come up with through the decades are nothing short of amazing. I collect these vintage auto ads. I love the ‘30’s-‘60’s era best. Ads reflecting the age of real exotic, wood-paneled ‘Town & Countries’ the whole family would pack themselves into, or, the ad classics like the VW ‘Beatle ads,’ created by Doyle Dan and Bernbach in the ‘50s have ended up being collectors’ items for all time. I love chatting with dealers and their sales crews, even some of my own staff and suppliers, who collect old classic cars. I love looking at pictures they haul proudly from their wallets like family pictures. One of the pictures was a ’78 Lincoln Continental “boat” with the newest eight-track stereo player. I still get thrilled when I remember Dinah Shore singing, ‘See the USA in your Chevrolet.’ Dinah almost single-handedly sold America on the freedom of a family outing together in a car, which led us directly into our American ‘Cars’ lifestyle. Some of these 1950-61 TV ads ran up to two minutes, a mini-travelogue. At today’s TV ad rates, how’d you like to pay for one of those? (Google ‘Dinah Auto Commercials.’)

wheels and inlays, is exhilarating. The Rolls are classics, too; and, then came the new orange Lamborghini rolling in, priced at a half-mil that now dominates his showroom and men’s fantasies. It was incredibly exciting. But, even the lower-price models floor me. The Mazdas, Hondas and Nissans are all perfectly engineered and designed! The mid-priced Acura’s and VW’s all turn my head, too, with detail that create a real ‘serendipity’ experience – with details totally unexpected. For the ultimate in ‘Showroom as Theatrical Experience,’ see the VW Glass Tower Factory in downtown Dresden (You Tube http://www.youtube.com/embed/nd5WGLWNllA?rel=0 ) . Isn’t this the ‘Ah-ha’ moment we’re all trying to engineer as our customer experience? We all stand around our showrooms, seeing these marvels of engineering and insights in design every working day. Sometimes, I think, it’s like being married, where, maybe, we end up taking our ‘sweethearts’ a little too much for granted. My job gives me a chance to re-invent, with Puget Sound owners, GMs and sales managers, the total experience of a show room and lot, which includes the building as well. Dealers need to use their entire Theatre, which includes the lot itself and the cast of characters and stage props on the lot, to orchestrate that ‘Ah-ha!’ moment for the customer. To do this we maximize and put to good marketing use the space already available and paid for in the lease and in the bill of sale. For most dealers, there’s still much work to do to accomplish that 100% optimization. Car dealerships should be gentle places of worship; like taking a sip of well-roasted, overly-priced coffee! I love the sound of the cash register ringing! As a retailer and chain owner of high-end stores across the country, I still love to see people get excited – because that’s when they volunteer to draw out their checkbooks. There’s no coercion, no long drawn out ‘kitchen-table’ dramas, like I used to enjoy as a college student selling encyclopedias door-to-door – where the first one to blink loses (frequently, at 2 a.m.). Car dealerships are not made to be ‘the last legal place without hurricane cages for bare-knuckle sales’ battles to take place.’ They should be gentle places of worship, like taking a sip of, well… well-roasted, overly-priced coffee!

We All Want the Ah-ha Moment in Our Showrooms So, Theatre and cars are in my blood. I marvel, when I How does one go about 100% optimization? discover while working a showroom, the absolute impeccable, Unfortunately, beyond the agency ads, incredible photography improbable and breathtaking details that the engineers are able of cars in motion, and the extraordinarily and beautifully to work into their pallet. Recently, we were fortunate to work executed brochures, the final coup d’état – what I call For more information or to make an appointment for a free consultation, contact Victoria Wenick, Media with a Northwest dealer and pioneer, Al Monjazeb, who owns ‘Last Mile Merchandising’ (from the street-to-the-door), Planning Specialist, The Seattle Times; phone 206/652-6845 or email vwenick@seattletimes.com. a number of high-end Northwest dealerships. Just being around manufacturers leave most dealers on their own to design the those Bentley’s, with their sensational exotic wood steering final Show. 33

lights, which ideally highlight the many metal curves of new auto models,’ represent upgrades that are becoming quite affordable to install. They also cut the electricity bills considerably. Plus, these lamps will outlast your grandma’s life span (even if she was born yesterday)! I also recommend commercial grade on-off timers. These will allow you to ‘sell’ via LUMiTM after hours and during early morning drive time, per your own seasonal lighting schedule. The auto dealership biz, now that the auto market’s vigorously returning, should become fun again. I hope to instill, back into dealerships, just a little of the ‘50’s – ‘60’s ‘Golden Age’ of Retailing’ that I lived, personally, as a retailer in the past. In those days, especially in the ‘70’s-‘80’s, we competed fiercely with our competitors for ‘Best of Show’ showroom windows and showrooms displays. We really ‘got,’ and ‘got into’ what the game was really about. We were deeply into competitive Theatre. Today, it would be called ‘Dueling Competition,’ or some such jargon in this modern ‘Star Wars’ world.

Showroom Lighting Can Enhance Your Presence There’s a wide range of improvements to be made. I tend to emphasize and focus on several of them – the easy, obvious, inexpensive ones for starters that can optimize the alreadypaid-for windows, top-lites above the showroom floor, and the showroom lighting. The top-lites in dealerships generally go unutilized as wasted space. They can even become liabilities showing glaring lights to the street. After all, what show’s complete without a backlit marquee out front? However, these empty top-lites are the equivalent of potential lighted billboards crying out for LUMiTM 24/7 backlit marquees. It’s a marriage in showroom heaven just waiting to happen. (Street billboard equivalents, on stilts run $4-12K in the Seattle Metro market. That’s $4-12K per month, just to rent it!) New LEDs Highlight Your Product and Decrease Your Power Bill Lighting the car models “optimally” on the showroom floor is an easy and obvious fix. Many Northwest showrooms still have old, expensive-to-electrify, track lighting or downlighting with old incandescent or halogen lamps that emit orange or yellow light. Today, the newly priced LED white 34

Don’t Forget the Customer’s Romance with the Car I hope that now that there’s a little wind back in our sails (literally, in ‘sales’), we might take a few minutes to think, and re-think, ‘Auto Sales as Pure Theatre’. How can we return to the true process where we focus on how customers relate to their new car purchases? Well, we need to pay attention! We need to pay attention how our customers are looking. We have to optimize our customer’s car purchase experience. We need to notice what they’re looking for and what they’re looking at while they’re shopping and interested in investing in a new car. Remember, ‘status’ is still #1 when buying a car. Buying freedom follows closely behind as #2. We still may be pushing a little too hard and too much on the metal and rubber features. This might seem like a moot point, but I still find that most of today’s dealers tend to think only ‘Techno,’ while the customers are already in a high-touch, ‘romance’ modality. Orchestrating your Theatre helps create this mood. When customers are in their romantic mood, they have that ‘Ahha!’ moment going, just like in the TV ads – which does not happen, trust me, by accident or small cost to the manufacturer. That’s when you want the music to start playing and the customer’s checkbook to slide out – unprompted, untethered and un-teased. You want good “old-fashioned, well-rehearsed competitive salesmanship. You can contact Neal Golden-Lekwa at nealgolden9@gmail .com.

By Nancy Friedman The Telephone Doctor

T How NOT to Answer Your Company Phone Call 36

The recent email we received below gave us some good ammunition for an article. While the industry, as you can see, is in the legal profession, believe me, it can happen in every industry. Read on: It’s from an attorney: Around 1:00 p.m. today I returned opposing counsel’s telephone call from this morning. The first person that answered the phone took my name and asked me to hold while he checked to see if she was back from lunch. After a short hold he came back on the line and transferred my call. At that point opposing counsel’s assistant answered the phone. She took my name for the second time and put me back on hold. After holding a couple of minutes, opposing counsel’s assistant came back on the line and asked if I could call back in twenty minutes! I am sure that her assistant is telling opposing counsel that I am a jerk because I answered, “No, I am calling her back now.” It’s a well-known fact that the first voice you hear and what they say when you call a company sets the tone, makes the first impression and welcomes the caller. It starts the rapport-building process. Few will argue that point. While there are several “faux pas” in the above email we received, which do you think is the MAJOR one? Our answer is at the end of this article. Here’s an easy four step process for handling a simple incoming call.

1. Use the Telephone Doctor 3-part greeting: o A buffer (Thanks for calling, etc.) o The company name (Steinberg Law) o And then your name (This is Nancy.) o STOP! “How can I help you” is NOT necessary in initial greetings. You are there to help. That is why you answered the phone. 2. Putting a caller on hold. “Hold on,” CLICK is not effective. Neither is “Hang on a second.” Learn to ask callers if they are “able to hold” and then WAIT for a response. 3. Monogram the call. If the caller gives you his name, use it immediately. It speeds the rapport building process. And if possible, use it once again, in closing the call. 4. Leave a good lasting impression. Seems as the opposing counsel’s office didn’t do that. Remember, more people will tell you about a bad experience than a good one. And the biggest faux pas? Asking a caller to call back! Never ask anyone to call back. That’s like kicking a customer out of the door at the store. As one of America’s most asked back speakers, Nancy Friedman’s programs are sought out by those who want to raise the bar in customer service as well as their revenue. For more information about this article, contact Nancy Friedman at www.telephonedoctor.com 38

PRSRT STD U.S. Postage

Puget Sound Automobile Dealers Association 16101 Greenwood Avenue N. Bldg. 2100 Seattle, WA 98133

PAID

Permit No. 592 Pontiac, Illinois

Connecting consumers to you with award winning mobile products.

Platinum Award Winner! iPhone App

MarCom Awards, 2011

We found her. And she found you.

Whether it’s on TV, online, in newspapers or through our vast partnership network, millions of in-market shoppers just like her see and hear our messages through our integrated advertising campaigns. Doesn’t your inventory deserve this kind of exposure?

Visit FindingCarBuyers.com to see all the ways we’re doing it. Visit FindingCarBuyers.com from your smart phone.

Email Jim Joly at jjoly@king5.com or call 206.448.3174.