Spring/Summer 2018
Woodward & Associates, Inc.
1707 Clearwater Avenue ·P.O. Box 1584 ·Bloomington, IL 61702 (309) 662-8797 ·Fax (309) 662-9438 ·Email woodwardassoc@cpaauto.com ·http://www.cpaauto.com Providing service to over 25 Iowa dealerships and their related entities. We specialize in automobile dealers in the following areas:
Certified Public Accountants
Memberships in:
Dealership valuations Automobile dealer legal support Buy-Sells for dealerships LIFO inventory computations Financial statement analysis Corporation Income Tax returns Personal Income Tax returns CPA prepared financial statements Dealer estate planning Employee theft consulting Internal control studies and audits Profit consulting Training office managers/CFO’s 401K Audits
AUTOCPA Group The American Institute of Certified Public Accountants Licensed to practice in Iowa
Serving more than 250 Automobile Dealers throughout the United States
FROM THE PRESIDENT
a way of life Dealers keep the world moving. If you have lived in Iowa for very long, you have heard the saying “Farming is a way of life.” My dad’s parents were family farmers. They had the hard-scrabble type of farm operation that required Grandpa to have a job in town, and I have a strong hunch that many years the revenue from Grandma’s egg sales exceeded the bottom line of the entire farming operation. But it was a way of life. One marked by hard work, distinct and sometimes extreme seasons, and a tremendous respect for the land they worked. As I approach the 35-year mark of representing automobile dealers, it occurs to me that the phrase “It’s a way of life” applies every bit as much to the men and women who own and operate Iowa’s car and truck dealerships as it does or ever did to farming. Like farming, being an automobile dealer is not just a 9-5 job. I grew up in a household where my parents’ jobs did not define our way of life the way being a farmer or an automobile dealer does. Make no mistake, after his military career my dad was the best claims agent that ever worked on a railroad and my mom’s hair salon was a booming small business, but once it was quitting time, you could never have guessed what it was they did for a living. Their careers did not define or describe them nearly as much as their outside interests, hobbies, and family relationships did. Like farmers, automobile dealers self-identify first and foremost by their occupation and the traits they share in common with others who do the same thing for a living. That’s not true of most people, who, like my parents, may love their jobs but never say or think that their vocation defines who they are.
While many Iowa dealers may be modest or say humble, selfdeprecating things about themselves and their industry, the truth is that being an automobile dealer is a noble and empowering life calling. And just as Iowa’s farmers can justifiably say that they feed the world, Iowa’s automobile dealers can proudly say that they keep that world moving. It takes a special kind of person and personality to be willing to make the sacrificial investment in time, energy, and resources to build and grow a successful automobile dealership. It also takes a special and rare type of individual to be able to structure an enterprise that can effectively serve the varied automobile needs of Iowa’s demanding motoring public. When you think about the customer variety that Iowa’s automobile dealers see and serve, it’s staggering. Everyone from soccer parents to tradesmen to high-end auto enthusiasts and even the working poor come through those doors every day, and each one needs to have his or her transportation needs met, whether it’s purchasing a new vehicle or having the one they are already driving repaired, maintained, or expertly detailed. It is not just the fact that automobile dealers are often multigenerational businesses that make huge investments (in facilities, inventory, and, most importantly, personnel) in an extremely low-margin industry that makes their occupation a way of life the same way those elements do for farmers. It is the fact that they are community leaders, civic volunteers, and leading philanthropists while taking on that kind of business challenge day after day and season after season that defines who they are, making it nothing less than a way of life. That way of life is on full display in this edition of Iowa Auto Dealer. From the cover story on the pets who live and work at Iowa automobile dealerships to the local Ford dealership that funds and drives its elementary schools’ literacy programs to the very last page where we cover the history and art of the Iowa license plate, you are going to find a celebration of the Iowa automobile dealer way of life in these pages. I hope you will read and enjoy every single article in this magazine. It is designed and intended to be read from cover to cover and then shared with your co-workers, friends, and customers. Let me know what you think and what you would like to see Iowa Auto Dealer cover in its next edition.
Bruce Anderson IADA President
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1111 Office Park Road West Des Moines, Iowa 50265 p: 800.869.1900 CHAIRMAN Jim O’Halloran VICE CHAIRMAN Jeff Haun PRESIDENT Bruce Anderson SECRETARY Mike Clemons TREASURER Jeff Finch IMMEDIATE PAST CHAIRMAN
Brad Deery
DIRECTORS AT LARGE
Kris Kramer, Danny Wilson
HEAVY DUTY TRUCK DIRECTOR
departments
INDEPENDENT DIRECTOR
01
06
12
04
09
14
Jon McCoy Dale Finch
DISTRICT ONE DIRECTOR
Dave Wright
DISTRICT TWO DIRECTOR
Patrick Eads
DISTRICT THREE DIRECTOR
Matt Brown
DISTRICT FOUR DIRECTOR
John Gookin
NADA DIRECTOR Jeff Weber EDITOR Brittany Bungert EDITORIAL INTERN Ashley Flaws Iowa Auto Dealer (ISSN 2472-2634) is a bi-annual magazine produced for members of the Iowa Automobile Dealers Association. © 2018 Iowa Automobile Dealers Association Cover Photo: English mastiff puppies Sierra and Shadow play at their home away from home. COVER PHOTO BY JUSTIN MEYER
2 IOWA AUTO DEALER
from the president Keeping the world moving.
show & tell A dealership promotes love of literacy to youth.
q&a Moving away from commission-based pay plans.
iada printing & promotions Promote your brand.
pro tip Impress with the best employee benefits package.
32
the close The deep-dive on Iowa license plates.
five things Peter Welch has a message for dealers.
features
16
state of the industry Get the full picture of Iowa’s new car franchises.
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home sweet home The furry friends spreading love at Iowa’s dealerships.
26
11 14
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civil discourse When are political conversations appropriate in a dealership?
25
PHOTOS: COURTESY OF VICTORY FORD (TOP LEFT); COURTESY OF NADA (BOTTOM LEFT); COURTESY OF BRAD DEERY FORD (BOTTOM RIGHT)
in this issue
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SHOW & TELL
literacy leadership
Victory Ford’s Reading 4 A Reason program encourages students to pick up a book.
Victory Ford places substantial book orders to meet the growing demand for prizes from the dealership’s Reading 4 A Reason program. PHOTO COURTESY OF VICTORY FORD
E m p l o ye e s a t Vi c t o r y Fo rd i n Dyersville wanted to do more to benefit the dealership’s community. “We’re involved actively in the high schools in the community and tried to figure out how we could become actively involved with younger children,” said Kaleann Waterman, public relations and events coordinator at Victory Ford. A brainstorming session among employees led to inspiration—Pizza Hut’s popular Book IT! program—and the desire to create a similar program.
4 IOWA AUTO DEALER
Launched for the 2014–2015 school year, the Reading 4 A Reason program has grown to include five schools and has incentivized local children to read more than 317,000 nights since the program’s inception. The Reading 4 A Reason program is designed to reward students for extra reading. Victory Ford creates and prints out logs for each school to distribute to students. Depending on the grade level, the students track reading an extra book or chapter in addition to their normal
homework each night. At the end of the month, the dealership collects the logs. “We keep track of every student and go back in the middle of the month to award the prizes they received for the previous month,” Waterman said. Prizes include books, trinkets, small toys, pencils, erasers, and, if the school allows it, candy. The prizes are tailored to each school, and every student who meets the criteria receives a prize. “Last year’s stats, we were giving 350 plus books per month on average,”
SHOW & TELL
“It’s a grassroots approach to giving back to the communities that support us.” Waterman said. “That’s not including additional prizes. The first two months of this year, we’ve given close to 700.” Embracing the Program As a pre-kindergarten teacher at Farley Elementary School in Farley, Caitlyn Deutmeyer gets to introduce students and their families to the Reading 4 A Reason program. “When I explain the program to the parents, they think it is awesome,” Deutmeyer said. “They love the idea of earning books as prizes for something they regularly do. This year, Kaleann [Waterman] started the program out by handing out a high-quality book—Pete the Cat: I Love My White Shoes. The kids were super excited because we were reading all about Pete the Cat and they could then read the book to their parents.” Reading together is something that Deutmeyer emphasizes to the families in her class, and the Reading 4 A Reason program helps reinforce that. “I make sure it is known that my expectation is that parents or an older sibling read to their pre-kindergarten child each night. I do not assign other homework besides that because reading at home is my number one priority,” she said. Deutmeyer is an enthusiastic supporter of Reading 4 A Reason, in part because it helps get her students excited about reading. “The students tell me if they read the night before at home when they turn in their folders in the morning. Also, [they’re] excited to see Kaleann when she comes with the prizes, of course!” Building a Foundation The dealership has been thrilled by the popularity of the Reading 4 A Reason program. “It’s a grassroots approach to giving back to the communities that support us, and it’s very nice to hear from the parents that are so appreciative of this program,” said dealer principal Forest Brown. “We’re excited to see how it’s kind of taken off and
we’re thinking of ways we can enhance it.” In conjunction with the school year program, the dealership also sponsors a summer reading bingo card with squares for activities such as “Read a book in your swim suit for 30 minutes.” The dealership has also developed a program encouraging extra math practice, Key to Mathematics, where students go onto a website with free math games and play for 15 minutes. The math program was inspired by the kids on Brown’s son’s football team, which he coaches. When report cards came out, he asked the students how they were doing. All were doing well, except in math class. “Reading is very important, but also math is important. We use math in every aspect of our business—in our service department, sales department, accounting—so we’re constantly having to put our math skills to use,” Brown said. The popularity of Reading 4 A Reason and the other educational support programs the dealership is developing led to the creation of the Brown’s Hometown Victory Foundation in October 2015. “Because of the success, it led to us creating our foundation in hopes that the dealership will not have to consume all of the costs moving forward because it has become such a community buy-in program,” Waterman said. The foundation has received grants and donations from local organizations, but the programs continue to grow and the foundation cannot yet fully fund the programs. The dealership continues to contribute the majority of the funds needed. The payoff for the investment in Reading 4 A Reason and the other programs comes, however, when dealership employees hear about how they are making a difference in students’ lives. And the most gratifying experience, Waterman said, was when a parent shared how the program “changed their child’s excitement level for reading and really turned things around for them.”
Prizes include books, small toys, pencils, and other items that reward students for extra reading. PHOTO COURTESY OF VICTORY FORD
By the Numbers 2014–2015 School Year 19,900 Nights Logged 1.5 Participating Schools
2015–2016 School Year 66,945 Nights Logged 3 Participating Schools
2016–2017 School Year 160,580 Nights Logged 4 Participating Schools
2017–2018 School Year 5 Participating Schools 1,600+ Students Enrolled
SPRING/SUMMER 2018 5
Q&A
cutting commissions Three experts offer advice on pay plans.
Q:
We’re re-evaluating our pay plans and considering transitioning away from a commission-based system. What best practices should we keep in mind?
MATTHEW R. SIMPSON Fisher & Phillips LLP
A:
This transition is becoming increasingly common. As dealers consider best practices for recruiting new talent to the automotive industry, they often experiment with more traditional compensation models that provide new hires with guaranteed income, such as hourly rates and salaries, rather than the fluctuation that comes with incentive-based systems. The move is not, however, always as simple as it seems. First, the dealership may be giving up important legal protections by abandoning the commission pay plan. Under federal law, dealership employees are generally exempt from overtime if they earn the majority of their compensation in the form of commissions and make at least time and one-half the minimum wage for all hours worked. While these employees (particularly, salespersons) may satisfy other exemptions by virtue of their job duties, the commission pay plan is an important backstop to ensure most employees’ exempt status. If a dealership considers abandoning the commission pay plan, it should therefore give careful consideration to what exemptions it intends to claim for those employees going forward. Second, with the recent rise in pay equity claims and focus on the gender pay gap, commission-based pay may serve as a helpful defense. After all, commission pay plans are performance based and make it relatively easy to explain why one employee takes home a bigger paycheck than another. That is not always the case with hourly rates or salaries. Dealerships must closely review each applicant’s and employee’s experience and qualifications to justify paying one employee a higher hourly rate or salary than another. If it fails to do so, it may expose itself to claims of pay discrimination. With that being said, the move from commission-based pay may still be a good move for your dealership and can help in recruiting and retaining top talent while also managing labor costs. It is, however, important to consider the legal implications of such a move before diving right in. MATTHEW R. SIMPSON Partner | Fisher & Phillips LLP | fisherphillips.com
Have a suggestion for our next Q&A?
Submit your questions to bbungert@iada.com.
6 IOWA AUTO DEALER
Q&A
A: TED KRAYBILL ESI Trends
Many dealers, including the largest dealer group in the country, have transitioned away from traditional commission-based pay plans. This trend is being driven by multiple factors, including margin squeeze on new cars and attracting and retaining millennials. 1. New pay plans should combine base salary or hourly pay with incentive bonus based on unit sales. The target ratio of base to bonus can vary from 80/20 to 60/40. It’s very important that base salary alone provides a living wage for new employees. 2. In today’s diverse talent pool, one plan does not fit all types, so be prepared to offer several different pay plans, including a commission-based system. Seasoned, successful sales consultants will usually choose the commission plan, while millennials will tend to choose a plan that puts less of their pay “at risk.” 3. Review the expected impact of pay plan changes on current sales consultants. Use monthly unit sales for the last three or four months to calculate their monthly pay for each plan that you offer, so together you can pick the plan that is right for them. 4. Always make sure your average and median total compensation will be competitive for your area. 5. Increase training to accelerate the sales learning curve. Many dealers waste money on monthly draws and guaranteed base pay because they fail to invest in enough training for new hires. Since these pay plans will increase your fixed base salary costs, you and your employees will benefit from investments and improvements you make in training and onboarding. It’s difficult to get it right the first time, but proper planning, analysis, and communication can assure successful implementation. TED KRAYBILL President | ESI Trends | esitrends.com
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One low cost for all terms up to 84 months
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Iowa’s Only IADA-Endorsed F&I Provider
Hawkeye Financial Services, Inc. hawkeyelife.com • 515.226.8440
SPRING/SUMMER 2018 7
Q&A
A: FERNANDO DIAZ Hireology
Base salary plus bonus pay plans for dealership sales staff align directly with today’s job seekers’ expectations for more consistent pay. While heavily commissioned pay plans have worked for baby boomers and Gen Xers, such plans no longer work for millennials—who now make up the majority of the workforce. Not only can base plus bonus plans help dealerships attract employees who might not have otherwise considered working in retail automotive, it can help dealers more efficiently project monthly costs. Dealers that have implemented this plan saw a decrease in compensation as a percent of gross due to the break even being fixed. The key to maximizing this plan is to hold the reps more accountable for production. The four car rep is going to cost you money, the eight car rep will be cost neutral, and anything over ten is pure profit to your bottom line. The higher you can push the average units up per person per month, the more money you make. In addition to holding reps accountable for production, other keys to success with base plus bonus plans include highlighting the revamped pay plan in hiring materials— such as on your career site and job descriptions—and offering employees the option to stay on a commission-based plan if that’s what they prefer. For example, AutoNation made the switch to a base pay plus bonus plan in 2017, and while 70% of sales reps chose to make the switch, some decided to stick with the traditional commission-based plan. FERNANDO DIAZ Account Executive – Auto Industry | Hireology | hireology.com
8 IOWA AUTO DEALER
IADA PRINTING & PROMOTIONS
summer swag
Make an impression this summer with promotional products that are sure to be a hit. BY ASHLEY FLAWS
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DECEMBER
Calendar Magnets Summer means vacation, and these calendar magnets can help get your dealership’s name out there while also serving as a countdown until trip time! It’s always smart to plan ahead by ordering early— not to mention discounts are often available when ordering in advance. Available in full color and with several different logo placement options, this practical and useful product is an effective way to promote your dealership. Wall calendars and sticky calendars are also great options.
Sunglasses With rays of the summer sun beaming brightly down on them, no one can pass up a free pair of sunglasses. Especially while at a parade or festival, people will appreciate having a pair of shades to protect their eyes. Wearable items are effective promotional materials because everyone who sees the sunglasses will also see the business who provided them. This free advertisement will be eye-opening for future customers.
Lip Balm Transport your future customers to a tropical island with lip balms coming in flavors such as piña colada, margarita, mango, and pineapple. Customers can enjoy the various tastes of summer while maintaining healthy lips, and they will remember your dealership helped them to do so.
Stress Balls Just because the weather is nice doesn’t mean every day can be a breeze. Coming in a wide variety of colors, shapes, and sizes, stress balls can be much needed for those strenuous summer days. They also serve as a convenient way to get your dealership’s name out there—and ensure future customers will associate your brand with the stress-free ease of a stress ball squeeze.
SPRING/SUMMER 2018 9
IADA PRINTING & PROMOTIONS
Golf Tees & Balls Golf is huge in the summer, but the costs of equipment and a round at the local course can add up. Take advantage of the opportunity by providing free personalized tees or balls with your dealership’s name proudly displayed to local golfers. Every time they place their ball on a tee and line it up for a drive, they’ll know who to thank.
Lawn Chairs Baseball, softball, swim meets, parades, and other summer activities call for the portable comfort of lawn chairs. If you want to make a lasting impression that will sit with customers for a long time, personalize lawn chairs with your brand and let them know their comfort is a top priority.
Contact IADA Printing & Promotions at 800.869.1966 to see more ideas that will wow your customers.
10 IOWA AUTO DEALER
Flying Discs With flying discs, you don’t need to throw caution to the wind. They can serve as a simple and fun way to get your brand out there while bringing future customers lots of summer entertainment. Popular with adults and kids alike, flying discs are typically items that are not immediately discarded and can serve as a lasting tool for promoting your business.
Sunscreen Scorching summer heat, shorts, and tank tops are the perfect recipe for a vicious sunburn, but you can help protect your customers with sunscreen. Promoting your dealership by handing out customized tubes of sunscreen at a local parade or summer festival will leave a lingering impression on people—and not the red, itchy kind.
Mosquito Spray Like a sunburn, mosquitoes are a consequence of warmer weather, and there can never be enough bug spray to void off the endless pests. Customize mosquito spray with your dealership information and customers will be itching to stop by.
Navigate changing conditions to move your dealership forward. That’s how we’ve been helping businesses like yours succeed for more than 90 years. Dealer Financial Services from Bank of America Merrill Lynch. What would you like the power to do? Tim Bradford Commercial Relationship Manager 319.269.5577 tbradford@baml.com
Keith Wilhite Retail Client Manager 515.782.2855 keith.wilhite@baml.com
bofaml.com/dealer
“Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed. ©2018 Bank of America Corporation. ARRDGKPB 02-18-0530
PRO TIP
the total package
Best practices can help you decide on the right employee benefits for your business. In a competitive job market, one way to differentiate your dealership from other potential employers is through your benefits package. “Benefits have always been a way to assist an employer in their recruitment, retention, and retiring of their current workforce, as well as to be seen as a good corporate citizen by their community,” said Kevin Boock of LMC Insurance & Risk Management. The reality of paying for those benefits, however, may limit what dealerships are able to offer. Follow these best practices to help decide which benefits best suit your business. Be competitive. “Dealerships need to be aware of how
12 IOWA AUTO DEALER
they compete locally or nationally for talent and what their competitors are offering for benefits,” said Boock. “Good talent (employees) understands the value in employee benefits.” LMC, an IADA preferred provider, assists employers with understanding what options for benefits are available and how they will impact the company’s bottom line. “The information that we provide is incredibly important for employers that use benefits in their hiring
practices,” said Boock. “If an employer isn’t offering benefits today, they will likely struggle in recruiting and retaining quality talent.” Find your focus. Medical, dental, and vision are of primary importance for many employees. Beyond those three, which benefits your business offers depends on what is the best fit. “Often when we have a new client, we see that they have focused on the wrong items and were spending
“Every benefit offering has a place, but finding the right fit for the employer and employee is key when offering employee benefits.”
PRO TIP
“Without the right products in place, life events can leave the employee in financial hardship.” money on benefits that were not the best fit for themselves and their employees,” said Boock. “Every benefit offering has a place, but finding the right fit for the employer and employee is key when offering employee benefits.” Think finances. “Employers should also consider options that are low cost but greatly reduce the financial exposure to their employees and potentially the employees’ dependents,” Boock said. “Disability coverage (income protection) and group life enhances their employees’ financial security if a life event were to occur. Without the right products in place, life events can leave the employee in financial hardship.” Consider extras. “More employers should consider worksite options due to the rising deductibles and ‘out of pocket maximums’ found in their medical plans,” said Boock. Worksite benefits include accident, critical illness, and hospital indemnity plans. “These products can provide financial assistance to offset some of the employees’ exposure when claims are incurred.” Plan for the future. Retirement plans range from the traditional 401(k) to Simplified Employee Pension Plans and Employee Stock Ownership Plans. Although pensions aren’t as popular as they once were, many potential employees look for some sort of program to help plan for their retirements.
Communicate compensation. Businesses should tell employees the value of their total compensation, including employee benefits, rather than just communicating wages. “If an employer is spending a significant amount of monies on benefits, the employee needs to appreciate what the employer is doing on their behalf,” Boock said. “If an employee doesn’t appreciate what the employer is spending on benefits, they can lose that employee for a higher wage. However, what an employee doesn’t always consider is how that competitor may not offer as rich of benefits or be compensating the employee in the same manner. That employee may be surprised to find out that their take home pay is less, even though they received a higher wage. Without communicating to the employee population the overall compensation, the employer is losing out on key reasons why an employer offers benefits in the first place. Furthermore, it is important to communicate why an employer offers the benefits that they have elected, instead of giving the monies directly to the employee.” Work with an agent. Agents—with their in-depth knowledge of employee benefits—can be a valuable resource for employers. “The employee benefits arena is complex and can easily lead to employers shopping on price alone, but as any good auto dealer can tell you, paying a little bit more for a much better product is the way to go,” Boock said.
Elements of a Benefits Package
Your dealership can offer a variety of employee benefits, ranging from basics that many employees expect to extra perks that help your business stand out. Basics: • Medical Insurance • Dental Insurance • Vision Insurance • Long- and Short-Term Disability • Group Life Coverage
Additional Options: • Accident • Critical Illness • Hospital Indemnity • 401(k) • Tuition Assistance
Medical Minimums “While offering benefits for small employers is optional, the federal government requires large employers that have more than 50 full time equivalents to offer minimum essential coverage or face a non-deductible excise tax, which can be up to $2,000 per employee per year if coverage was not offered in the preceeding calendar year. If coverage is not affordable, the penalty can rise to $3,000 per employee per year should an employee go on the exchange and receive a taxcredit for their premiums.” Kevin Boock LMC Insurance & Risk Management
For More Information LMC Insurance & Risk Management Pat Duff pat.duff@lmcins.com 515.237.0193
SPRING/SUMMER 2018 13
FIVE THINGS
five things from peter welch What NADA’s president wants Iowa’s dealers to know.
1.
The customer is king or queen. Your customers are royalty. No business today— from a multibillion-dollar corporation to a microbusiness—can afford to take their customers for granted. And that’s especially true in the car business, where we absolutely depend on recurring revenue from valued customers. Our customers, the service we give them, and the experience we present to them are as important as the air we breathe.
2.
Local service differentiates local dealerships. One thing we learned through a research project we commissioned last year was that customers value local businesses and the experience and emotion that “local” brings to the transaction. We heard a lot in the past that we had to standardize the retail experience—be that in hotels, restaurants, or banks. Today, the pendulum is swinging back, and what differentiates local dealerships from the Walmarts of the world is how each business is unique in locality and culture. Our customers are royalty, but the unique experience we give them is what keeps them coming back.
3.
The future of our business is our employees. The only way to bring our customers a high quality and unique local experience is by having the best trained workforce available, which means that in local dealerships of the future, employees will be our most valuable asset and best resource. That will mean extra training for salespeople, product specialists, technicians, and managers, but over the long term these will be the best investments you can make.
4.
Don’t kill yourself trying to catch unicorns. Wall Street and Silicon Valley are hot on electric vehicles, autonomous vehicles, and ridesharing. But real consumers who pay real money for transportation are nowhere near as interested in these technologies as those folks, which means that some companies are losing sight of their core business in the pursuit of a future that
PHOTO COURTESY OF NADA
14 IOWA AUTO DEALER
FIVE THINGS
NADA President Peter Welch testifies before Congress. PHOTO COURTESY OF NADA
they may get completely wrong. Bottom line, it’s important to be on the cutting edge and push the boundaries of what’s possible—but not if it means losing sight of what we do best.
5.
Stay active. Your competitors are threats. But your biggest threat may be your government. Stay in close contact with your state association and NADA as we work to protect our dealers and our customers from harmful laws and regulations at every level of government —whether that’s a local sign ordinance, a state franchise law, or a federal effort to restrict discounts on financing. Your associations are your voice, but they need to hear from you. So be heard and stay active! Peter Welch has served as NADA’s president and CEO since February 2013. Previously, he was the president and CEO of the California New Car Dealers Association.
NADA President Peter Welch (front row, right) visits with the Iowa delegation at the 2017 NADA Washington Conference. Iowans at the conference included (back row, from left) Stan Moffitt, Jeff Haun, Mark Birdnow, Jeff Weber, Jim O’Halloran, Bruce Anderson, and (front row, left) June Birdnow.
SPRING/SUMMER 2018 15
state of the industry
As IADA begins its 100th year, the automotive retail industry is strong even as dealerships continue to consolidate. In 1968, all of Iowa’s 99 counties had multiple franchised new car dealerships. In 2018, 14 of those counties do not have a single franchised new car dealership. Despite the consolidation and concentration of dealerships in more populated counties, Iowa’s new car dealers are selling and servicing more vehicles. An estimated 4,341,801 motor vehicles were registered in Iowa in 2015, according to the Iowa Department of Transportation. “Iowa has a growing economy and population, which points to Iowa dealers selling and servicing more vehicles,” said IADA President Bruce Anderson. “That fact, combined with Iowa’s strong consumer-friendly dealer franchise law, means Iowa car and truck buyers are going to determine where dealerships are located rather than manufacturer executives in Detroit, Europe, and Asia.”
Number of Iowa Franchises 1968
2018
248 Chevrolet 241 Ford 123 Oldsmobile 117 Plymouth 116 Chrysler 110 Dodge 105 Mercury 88 GMC 74 Rambler 42 Lincoln 18 Jeep 13 Volkswagen 6 Toyota
98 Ford 94 Chevrolet 69 Chrysler 69 Dodge 69 Jeep 47 GMC 35 Lincoln 16 Toyota 12 Nissan 9 Kia 8 Hyundai 8 Mazda 8 Volkswagen
Then
Now
981 new-car dealerships
294 new-car dealerships
$10,780,000 collected in motor vehicle use tax for new vehicles
$338,817,892 collected from the fee on new registration
(1968)
(2018)
(2017)
(1967)
2017 Iowa New Vehicle Registrations by Make 1. Chevrolet 2. Ford 3. Toyota 4. Honda 5. Jeep 6. Nissan 7. Ram 8. GMC 9. Kia 10. Subaru 11. Hyundai 12. Dodge 13. Buick 14. Chrysler
16 IOWA AUTO DEALER
29,798 24,852 14,264 8,459 7,577 7,169 6,266 6,117 4,238 4,208 4,029 3,689 3,345 2,597
15. Volkswagen 16. Mazda 17. Lexus 18. Cadillac 19. Audi 20. Lincoln 21. Mercedes-Benz 22. Mitsubishi 23. BMW 24. Infiniti 25. Acura 26. Volvo 27. MINI 28. Land Rover
1,529 1,525 1,306 937 802 686 655 636 622 463 462 354 290 246
29. Jaguar 30. Fiat 31. Porsche 32. Tesla 33. Genesis 34. Alfa Romeo 35. Smart 36. Maserati 37. Bentley 38. Ferrari 39. McLaren 40. Aston Martin 41. Lamborghini 42. Rolls Royce
163 128 96 79 32 27 17 13 4 4 3 1 1 1
STATE OF THE INDUSTRY
Number of New Car Franchises by County 1968 0
14
1-4
25
5-9
21
10-14
9 25 21 14
28
15-19
15
12
16
13
16
22
21
23
15
20-24
16
11
16
20
17
14
19
22
14
20
25
25
17 16
19
13
14
15
11
25
20
22
19
16
22
22
30
24
36
23
33
43
21
11
22
20
15
27
19
16
15
38 19
22
14
16
19
23
33
26
28
25-29
24
18 27
30-34
20
12
14
17
9
16
7
17
10
13
11
8
24
6
10
9
4
14
35-39 40-44
11
19
18
14
20
8
11
17 23
30
2018 0 1-4 5-9 10-14 15-19
2
1
3
3
5
0
0
7
16
8
6
7
0
6
10
3
10
11
9
7
5
8
2
8
9
2
21
9
4 1
7
9
9
20-24
2
2
5
11
9
0 13
0
2 7 7
10
13
9
8
25
4
29
11
1
10
40
5
11
8
11 14
5
10
10
9
20
25-29
25
11 15
7
30-34
1
8
0
16
7
1
4
0
5
0
9
1
1
1
11
3
1
6
0
7
0
0
0
0
0
35-39 40-44
27
7 8
15
10
SPRING/SUMMER 2018 17
18 IOWA AUTO DEALER
STATE OF THE INDUSTRY
2018 Franchises Represented in Each County
SPRING/SUMMER 2018 19
h me sweet h me Meet the furry friends who call Iowa dealerships their homes. BY ASHLEY FLAWS
Shadow and Sierra love spending time at Junge Ford North Liberty with their owner, Jodi Turner. PHOTO BY JUSTIN MEYER
20 IOWA AUTO DEALER
HOME SWEET HOME
Each day, Ginny Dahl of Dahl Ford in Davenport takes an inventory walk with the salespeople and interacts with the customers, and she often enjoys a lunch break with her co-workers. Many dealership employees can relate to these experiences and appreciate the work that goes into them, but Ginny’s role at the dealership is slightly different: She’s the Dahl Ford mascot. A five-year-old red fox lab, Ginny is the face of Dahl Ford, used in all of their advertising and communications. “The employees and customers love her. She even gets Christmas cards. More than a few customers bring her in treats and toys every time they visit us,” said KV Dahl, general manager of Dahl Ford and owner of Ginny. Dahl said that Ginny has been coming into the dealership ever since she was a puppy, and before her, Dahl Ford had another dog as their mascot for 13 years until she passed away, leaving employees and customers heartbroken. Shortly after, Dahl met Ginny and knew that she was the right dog for him and for the dealership. Since then, Ginny has become the official greeter of the dealership and can often be found prancing around to show off her new toys. Dahl said that Ginny understands her role and has become a natural on camera. Employees and customers alike enjoy her presence and often sneak her bits of salami and cheese throughout the day. For Dahl, the benefits of her presence at the dealership are clear. “I think it makes us human,” Dahl said. “We’re a family business, and that kind of shows it. We’re human beings, too.” Dahl Ford isn’t alone in hosting a furry friend; several other
dealerships in Iowa offer a home to various pets or accept frequent furry visitors. Across the board, these pet-friendly dealerships have experienced the joy of having the comforting and playful presence of their beloved animals, and customers love to interact with them, as well. Here are a few of the lucky pets who get to call an Iowa dealership their home or home away from home. The PR Professional Originally a stray and named affectionately for his graycoloring, nine-year-old Smokey the cat has called Brad Deery Motors in Maquoketa his home for eight years now. On a typical day at the office, Smokey can be found lounging about or sometimes wandering around the sales floor and waiting room.
“I think it makes us human. We’re a family business, and that kind of shows it. We’re human beings, too.”
Smokey, a former stray, likes to greet customers in the waiting room. PHOTO ILLUSTRATION COURTESY OF BRAD DEERY MOTORS
SPRING/SUMMER 2018 21
HOME SWEET HOME
Henry’s toys now spill about the showroom, and he has free roam around the dealership and outside when the weather is nice. Even with all of this space in his new home, Canganelli said that Henry spends most of his time in his bed in the front window either sleeping or keeping an eye on everything. However, employees and customers know how to get his attention. “Every time my desk drawer opens, he comes running for treats,” Canganelli said. “Also, when customers are in the lounge, he sometimes jumps up on the chair by them for some attention. It is not uncommon to look over and see someone holding him.” Customers have loved the addition of Henry to the dealership, and Henry now has a place he can call home and lots of people to love him.
Since she was a puppy, Ginny has been the official greeter and mascot at Dahl Ford. PHOTO COURTESY OF KV DAHL
“Smokey is the best PR person at the dealership,” said Aimee Rogers of Brad Deery Motors. “He is the morning greeter. [He] walks up and loves on people in the waiting room … Smokey is a very sassy cat with a strong personality. He is very spoiled, with more toys than he will ever play with, but he loves whenever there is a paper bag to play in more than all the toys. His favorite thing to do is people-watch from on the top of cabinets.” Smokey was brought into the dealership after being discovered at a service writer’s house, and the general manager thought having a pet at the office could be a good way to lighten the atmosphere. Customers are encouraged to bring their pets along with them, as well. “Having pets at the dealership is a great morale booster for everyone, whether it’s Smokey or a customer’s pet that comes in with them,” Rogers said. “Customers and employees alike will flock to the animal and give them tons of attention. It definitely can lighten your spirits and in a fast-paced day makes you slow down and enjoy the visit a little more.” The Stray that Got to Stay Smokey isn’t the only stray that now reaps the benefits of a Brad Deery dealership home. Richard Canganelli, the general manager at Brad Deery Ford in Maquoketa, said that he fed a stray cat outside of the dealership for about six weeks, and Brad Deery also noticed the cat’s frequent presence outside their door. After a couple visits from the cat, Deery said to take him to the vet and move him in. The cat is now called Henry Ford, estimated to be a little over a year old, and he has been with the dealership since November 2017.
22 IOWA AUTO DEALER
Playful Puppies Shadow and Sierra, English mastiff puppies who are only a few months old, live at home with their mom, Jodi Turner of Junge Ford North Liberty. However, Turner loves to show the quickly growing pups off to her co-workers and brings them into the dealership for frequent visits. Although they’re still fairly small, Turner estimates the puppies will grow to be over 100 pounds, possibly even close to 200 pounds. Shadow and Sierra were adopted by Turner’s family after their dog Nala passed away last year. “My co-workers saw how sad I was. Then we found these babies a few weeks later and brought them home,” Turner said. “I was anxious to share my excitement with my co-workers. They [are] some of the softest, squishiest monster puppies ever!” When the puppies are at the dealership, employees and customers are eager to play with them, although Turner says a game of fetch usually turns into the puppies plopping down and chewing on the rubber duck. “Belly rubs, tennis balls, any treats that hit the floor are usually welcomed, too,” Turner said. “Guests are usually pretty much instant, affectionate friends! Shadow especially makes friends easily, maybe because he’s so soft and squeezable? He’s more of a big oaf, and Sierra is the, shall we say, more coordinated one… After the excitement wears off, they will lay down behind my desk and take a little nap.” Whether they’re napping, playing, or chewing, the puppies spread happiness to anyone at the dealership. Although the puppies won’t be present at the dealership every day, Turner hopes to bring them in for frequent visits. “Dogs bring out a side of people that is kind, and maybe, at their age, a little playful,” Turner said. The Seven-Toed Mischief-Maker and His Furry Friends When employees at Hawkeye Ford Inc. in Red Oak saw the seven-toed and sickly cat wandering onto their parking lot in the middle of the day, they knew just what to do. “The minute I saw that bow-legged, 14-toed gait I said, ‘Hello Earl!’ and it stuck,” said Jo Josephson Gallagher, president of Hawkeye Ford. Earl joined another cat, Lilly, who already lived at Hawkeye full time and two miniature schnauzers, Guinness and Killion,
HOME SWEET HOME
Henry Ford, a stray cat who was adopted by Brad Deery Ford, relaxes at the dealership. PHOTO COURTESY OF BRAD DEERY FORD
who are frequently brought into the dealership by their owner, Josephson Gallagher’s son Mike Josephson. After Josephson Gallagher’s granddaughter was born, the cats became Aunt Lilly and Uncle Earl, as they are still affectionately called today. Josephson Gallagher said the four pets are “respectful friends” and follow a legacy of previous mascots that have represented Hawkeye since 1988. The four current mascots have been at the dealership for around a decade and have attracted the attention of a lot of customers. “They have a special relationship with our customers,” Josephson Gallagher said. “People always ask about the dogs. They love to hang out in the customer lounge, and it is no secret which cabinet the dog crackers are stored in. There are dog baskets underneath several of the desks at work, and quite often an unsuspecting customer has gone through the entire buying process with a dog asleep nearby.” Uncle Earl, for his part, can frequently be found in any customer’s lap who will let him sit there. Josephson Gallagher said Uncle Earl even jumped onto a customer’s wheelchair and gave the man quite a shock, but the two are now friends. He also sometimes causes mischief with the employees.
“Dogs bring out a side of people that is kind, and maybe, at their age, a little playful.”
“Uncle Earl has a love/hate relationship with one of our sales consultants, Tracey Johnson,” Josephson Gallagher said. “Tracey likes to waive a pen and see if Earl will grab it. Earl’s two extra digits work like opposable thumbs, and there are times he grabs the pen in one hand and holds it. One day, Tracey had played this game a little too often, and Earl walked across Tracey’s desk and swatted a cup of water into Tracey’s lap. This was so obviously intentional, as Earl looked at Tracey to see his reaction.” Aunt Lilly is shyer but is always able to tell who the cat lovers are in the room. Together, the four animals serve as conversation starters for new customers and are well-loved by long-term Hawkeye customers. Josephson Gallagher said that the animals put the customers at ease and help provide a distraction during the wait time. In return, the four animals get to make new friends every day. The Local Celebrity Named after the Shelby Mustang, eight-year old Shetland Sheepdog Shelby has been accompanying her owner, Rydell of Independence General Manager John Butler, to work since she was eight weeks old. After the death of his previous dog, Butler and his wife were reluctant to get a new dog until they found Shelby being pushed around in a shopping cart full of puppies for sale. Butler originally brought her into the dealership so he could keep an eye on her while she was getting potty-trained and so she could be socialized with other people. Today, Shelby is listed as the official greeter for Rydell of Independence and has participated in marketing campaigns for
SPRING/SUMMER 2018 23
HOME SWEET HOME
Shelby, the official greeter for Rydell of Independence, has become well-known after starring in the dealership’s ads. PHOTO COURTESY OF JOHN BUTLER
the dealership in years past. In fact, Butler even says she has become famous in town. “Shelby is somewhat of a local celebrity,” Butler said. “Her claim to fame started when she starred in our television commercials and newspaper ads for the dealership. She quickly became a recognized symbol of the dealership. We did a series of TV spots featuring Shelby, and our advertisements won an Addy award for Best Regional Ad Campaign in the Cedar Valley thanks to a great staff and crew at Mediacom in Waterloo. These ads were up against some pretty big competition and we consider this award to be a great honor. We still use her photos for mailers and digital dealership marketing material.” In a typical day at the dealership, Butler said Shelby can be found soaking up the sun in the showroom or hanging around in his office or outside his door. She also loves to play and interact with children that come into the dealership. What started as an easy way to potty-train Shelby has now become part of the daily grind, and eight years later, Shelby is a valued member of the dealership. “I consider myself very fortunate to be able to bring my dog
24 IOWA AUTO DEALER
to work each day,” Butler said. “I think she would be miserable to be left at home during the day. I would probably be miserable also if she were not able to come to work with me. I know we would have some pretty disappointed customers if she were not here to greet them when they come through the door.” Overall, the experience has led Rydell of Independence to become a pet-friendly business, and Butler encourages customers to bring their well-behaved dogs in. He said that other than an occasional mishap on the tile floor, well-behaved dogs in the business have not caused a single issue but make a great addition to the dealership. Spreading the Love By providing these animals with a safe and loving home or home away from home, these dealerships are going above and beyond and showing their customers how much they care—not just about them but about these animals. These animals spread the love in a way that only furry companions can, and customers and employees respond positively by loving them right back.
HOME SWEET HOME
Pet Protection
Pets make great additions to a dealership, but there are certain things you should keep in mind if you want to bring animals into your store. Bob Schueler of LMC Insurance & Risk Management shared best practices for businesses to think about before allowing pets inside. •
Uncle Earl (above) and Aunt Lilly (below) carry on the legacy of furry mascots at Hawkeye Ford. PHOTO COURTESY OF HAWKEYE FORD
Be aware that certain breeds, such as pit bulls, Rottweilers, German shepherds, chow chows, Alaskan malamutes, Doberman pinschers, and wolf hybrids can pose bigger risks for aggression. Check with your insurance company to see what rules they may have concerning these breeds. • Dogs should be spayed or neutered to minimize the possibility of aggressive behavior. • All licensing and vaccinations related to the pets need to be current. • Don’t place a dog in any situation where it will feel threatened. If your dog shows signs of aggression, remove it from the area right away. • Be careful about leaving animals unattended. For example, any situations where animals are left unattended with children should be avoided. If you allow other pets on your premises, you must also be aware of rules to avoid risks. • You must allow all service animals certified under the ADA onto your premises. • It is recommended that owners keep pets on a leash no longer than 6'. • No dogs can be left unattended in vehicles on the premises. Other important things to note: • In nearly every case of human injury involving a dog, the dog’s owner will be liable. • If insurers are aware of a dog’s regular presence or if a dog-related claim has been filed, the future insurability of the company cannot be guaranteed. • In 2014, a leading national insurance carrier paid $115,000,000 in settlements for 3,500 dog-related injury claims from both personal and commercial exposures. $528,000,000 was paid from 2009 to 2014 due to dog-related claims. Bottom line: Dogs and cats can make a loving addition to your dealership, but be aware of the risks and take precautions to ensure the environment is safe for both your customers and the pets.
SPRING/SUMMER 2018 25
CIVIL DISCOURSE
civil discourse
Talking politics at your dealership—or on social media—could cost your business employees and customers.
26 IOWA AUTO DEALER
CIVIL DISCOURSE
During the height of the 2016 election season, when emotions regarding political candidates were running high nationwide, a service tech at a dealership in Montana posted on his personal Facebook Timeline. The post read, in part: “A guy with Hillary Clinton stickers all over his car came into the shop today. I refused to work on his car.” The comments on the post included a follow up from the tech containing vulgar language and a photo of an offensive gesture with the customer’s car in the background. After the photo went viral and dealership executives learned of it, the employee was fired. That case is an extreme version of something happening across the country every day. Politics have become so polarized and political conversations so heated that common sense flies out the window, leaving feathers ruffled and, in some cases, jobs lost. There’s little upside to political discussions in a dealership, unless the conversations revolve around work-related issues. And as we enter the 2018 election cycle in a time filled with heated partisan rhetoric, it’s more important than ever to make sure that everyone in the dealership understands when political conversations are appropriate and when they can cause problems. It’s also equally important to discuss any new policies you may decide to implement with your attorney before announcing them to the dealership staff. The Freedom of Speech Myth Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances. First Amendment
Although citing First Amendment rights is popular among people making what may be perceived as controversial statements, there is no such thing as free speech when it comes to the private sector workplace. The First Amendment applies specifically to the government, not the private sector. “A lot of people will say ‘It’s my First Amendment right to say this opinion,’ and in most situations, it’s really not,” said Paula Brantner of Workplace Fairness, a non-profit organization that advocates for employee rights. “That’s not what the First Amendment is about, and your employer typically has the ability to shut those conversations down up to discipline and termination if the employer considers them disruptive to the workplace or, honestly, if they disagree.” While the First Amendment doesn’t apply to private workplaces, workers do have some limited speech rights, mainly pertaining to “concerted activity” in which an employee or employees take action regarding terms and conditions of employment under the National Labor Relations Act. Iowa law does contain specific prohibitions against threatening or coercing an individual about whether they voted or signed a petition and discriminating against someone based on their party membership. But terminating someone’s employment because you don’t agree with their political views or they are starting political arguments at work? There’s no protection
against that for employees. “The consequences for having a different opinion can be significant. It can cost you financially, in terms of reputation in the community, and make day-to-day work life difficult,” Brantner said. “There’s not a lot of legal protections to just be you and be who you are and say what you want. The flipside is you can find yourself in trouble with not much to do about it.”
Divided We Stand
American political views are increasingly polarized—making any political conversations risky business.
27% of Democrats and 36% of Republicans saw the opposing party as a threat to the nation’s well-being in 2014.
86% of Americans say conflict between the two major political parties is either strong or very strong.
The average partisan gap tracked by the Pew Research Center increased from
15 percentage points in 1994 to 36 percentage points in 2017. In 2017,
44% of Democrats and those who
lean Democratic viewed the Republican Party very unfavorably while
45% of Republicans
and those who lean Republican viewed the Democratic Party very unfavorably. In 1994, fewer than
20% said the same.
Source: Pew Research Center
SPRING/SUMMER 2018 27
CIVIL DISCOURSE
“If you are very visible through social media, making your views known, and they are considered extreme, or your network is widely disseminating that information, you could be putting your job at risk.”
Political Prohibitions Despite the fact that employees don’t have a right to free speech in the workplace, many employers choose not to place limitations on political speech. In part, this is because so often political and social issues related to race, gender, and other protected classes go hand-in-hand, so terminating employees for certain speech can carry a risk of discrimination. “Something that restrictive, and disciplining people for violating it, could pose its own challenges,” said Brantner. She recommends if employers want to go the route of limiting speech that they extend it beyond political speech to religion and other controversial topics. “If you’re going to be restrictive, it’s best to be consistent in excluding all potential topics that could make liability for the organization.” Beyond potential liability for companies, workplace conversations—whether among co-workers or with customers— can have a tremendous impact on the workplace environment. “We also need to recognize that not everybody believes what we believe,” said Melynda DeCarlo of The Meyvn Group, a West Des Moines-based leadership development company specializing in human resources. “We believe that when I say something, well, you must think that, too, and that’s why you’re going to be okay with me saying that. A lot of people hear you say things on a daily basis that they don’t agree with, but they’re not willing to speak up and tell you that.” Many companies are choosing to adopt respectful workplace
28 IOWA AUTO DEALER
policies (see page 31) to provide a framework for expectations of both employees and the company. Even more common are social media policies, which help employees understand what is acceptable to post online when you are affiliated with their brand. Going Social Social media has changed the landscape of political conversations and how they can impact the workplace. In the past, you could discuss political views among friends without your co-workers or customers ever finding out. Today, when so many of those discussions take place online, a seemingly innocuous like, share, or comment can broadcast your views to any colleagues or customers in your network. “A lot of people go on Facebook and start adding all their customers. There’s exposure and a lot of problems with that,” said DeCarlo. “You’re allowing people access behind the curtain of who you are as a person. It’s best to keep that curtain up.” DeCarlo recommends people consider having multiple social media accounts on each network, or using certain networks, like Facebook, for personal, and others, like LinkedIn, for professional contacts. “That way you don’t have that kind of gray, that overlap between the two,” she said. If an employee is posting about politics on social media during work hours, a conversation needs to happen between the employee and their manager about social media use while on the job. What employers may not realize, however, is that they can
CIVIL DISCOURSE
also put in place social media policies that provide guidelines for employee social media postings outside of work hours, as well. “There are companies that go so far as to say that we don’t ever want you to have an alcoholic beverage in your hand” in photos posted on social media sites, DeCarlo said. Posts using profanity, sharing jokes, or using certain kinds of cartoons can also be prohibited on accounts that can be connected back to a company. And many social networks make identifying your employer a key feature of your profile, as with LinkedIn. “The downside is that even if you say ‘my views are my own’ people are going to see who is your employer,” Brantner said. And that can have consequences. After a white supremacist rally in Charlottesville, Virginia, people were taking photos of the rally participants and then outing them to their employers. Several people were terminated when their employers found out they participated in the rally, saying that participation didn’t align with the businesses’ values. “If you are very visible through social media, making your views known and they are considered extreme, or your network is widely disseminating that information, you could be putting your job at risk,” said Brantner. Speak Up, Speak Out If a fellow employee is initiating political debates or stating controversial positions that make others uncomfortable, employees should ask the co-worker to stop or share their
concerns with their supervisor or human resources. “What I find is that most often, people are most comfortable with either changing the subject, in other words, redirecting the conversation to something more neutral or something that’s less inflammatory, or they may just ignore the comment completely and go on to something else,” DeCarlo said. “We often think silence equals agreement. When we allow these conversations to occur and don’t tell people it’s a problem, we’re actually encouraging them to continue.” When it’s a manager or dealership owner talking politics, it can be much more difficult to address the problem. “If I’m in a privately held company, it’s difficult to say to your boss that ‘I’m not comfortable with that conversation’ or ‘I really wish you could refrain from using that language,’” DeCarlo said. “If there’s something we find offensive or discriminatory or disrespectful, it is our responsibility to speak up.” Brantner urged caution for the employee. “An employer can terminate for any reason, or no reason, as long as it’s not an illegal reason. You would be risking termination if you were to speak out or oppose what the employer has to say. There may be ways you can deflect or make clear that you prefer not to talk about this stuff, and that may be sufficient to keep it from damaging your working relationships. But ultimately speaking, if it becomes unbearable or the business owner or supervisor is determined to impose their views, there’s just not a lot you can do about it unfortunately.” Of course, terminating employees simply for speaking up about
“You’ll make more money if you have a respectful environment. You’ll make more money if you have an inclusive environment. You’ll make more money if you have less drama, if people enjoy being at work. It’s just good business.” SPRING/SUMMER 2018 29
CIVIL DISCOURSE
disagreeing with management’s politics can have consequences for the business, causing a loss of employee morale, creating a reputation for being a difficult place to work, and resulting in a high turnover rate. A 2008 study by CPP Global found that on average, each employee in the United States spends 2.8 hours every week dealing with workplace conflict—which means approximately one lost day of work per month. That’s why, DeCarlo said, it makes business sense to establish clear and consistent policies. “You’ll make more money if you have a respectful environment. You’ll make more money if you have an inclusive environment. You’ll make more money if you have less drama, if people enjoy being at work. It’s just good business.” Customer Service It’s especially important to remember that the people who may be the subjects of some of those political conversations—whether the posts target a specific gender, race, sexual orientation, or political party—are all potential customers. If employees at your dealership are frequently complaining about supporters
of President Trump or are complaining about undocumented immigrants, they could be alienating a significant number of your customers. After all, people who don’t agree with all of your views buy cars and need them serviced, too. It’s important to keep conversations with customers (or conversations that customers can hear or read, as in the case of social media posts) limited to non-controversial topics. “Obviously the consequences are fairly high if you lose the sale of an expensive big ticket item like a car. You don’t want to put the sale at risk by talking about something that is generally not relevant to landing the sale or relevant to the purchase itself,” Brantner said. “I think it is generally best to keep politics out of the workplace.” And what to do if a customer brings up politics or makes an off-color remark about a specific group of people during the sales or service process? In many cases, it can be better to just ignore the comment rather than to risk alienating a customer, although there may be circumstances in which management feels it is appropriate to step in.
“You don’t want to put the sale at risk by talking about something that is generally not relevant to landing the sale or relevant to the purchase itself.” 30 IOWA AUTO DEALER
CIVIL DISCOURSE
If, for example, a customer says something inappropriate to a salesman showing a car, it can be best not to acknowledge the remark. “Or I’d say ‘Hey, have you seen the gas mileage?’ and redirect the conversation,” DeCarlo said. “I wouldn’t say something that would support that point of view. I wouldn’t engage. “Most salespeople won’t want to tell a potential buyer that they don’t want to talk like that.” If, however, a customer is harassing a dealership employee, especially on the basis of gender, race, religion, or sexual orientation, the employee should go to management. No one should ever be expected to tolerate harassment in the workplace, even from customers. Rules of Engagement If you choose to permit political speech in your business, there are best practices that will help protect both your company and dealership employees. Think twice before you: • Send political cartoons via your work email • Solicit support for a controversial cause • Post about politics on your personal social media accounts or a personal blog • Wear political clothing or paraphernalia or have political paraphernalia visible on your personal belongings
Discuss particularly controversial topics, such as abortion, in the workplace Make sure to: • Be respectful of others’ views • Approach any conversation as a way to learn more about another’s perspective, rather than attacking their beliefs • Keep the conversation friendly • Remember that you’re not likely to change anyone’s position on an issue—or their political party—in a conversation at work or on social media As much as avoiding political discussions altogether might be best for business, it doesn’t seem to be reality. A 2017 survey by BetterWorks and Wakefield Research found that after the 2016 election, 73% of employed adults had talked with colleagues about politics and 49% of people had witnessed a political conversation turn into an argument. If you’ve seen political conversations creating problems in the workplace, address it now, before the 2018 election cycle gets in full swing. During these particularly partisan times, setting clear expectations for employees and management will help keep the peace as the election approaches—and hopefully will keep your employees and customers happy in the long run, as well. •
R-E-S-P-E-C-T
Many workplaces are adopting respectful workplace policies, which help define expectations for both employees and employers. “This is to help guide or support employees, by providing them some ideas of what would be acceptable in healthy workplace conversations and what might best be avoided,” said Melynda DeCarlo of The Meyvn Group. Respectful workplace policies are traditionally included in employee handbooks and are something that should be discussed during new employee orientation or during leadership training, especially for managers. The policy should include a commitment from your dealership that expresses the company values— things like all employees having the right to be treated with respect and dignity. The policy should also define acceptable workplace behaviors. These behaviors could include:
•
Using respectful and supportive language • Listening with an open mind • Giving direct, non-personal feedback instead of criticizing • Approaching conflict with maturity • Maintaining a positive attitude Inappropriate behaviors should also be defined. These may include: • Berating others
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Using a condescending tone Excessive or unnecessary micromanagement • Inconsistent discipline • Any malicious behavior Policies may also include the responsibilities of management and employees and a process for investigating any complaints that may arise.
SPRING/SUMMER 2018 31
THE CLOSE
license plate lessons As Iowa prepares to launch a new design, brush up on the history of vehicle IDs. BY ASHLEY FLAWS We see them everywhere we go, aluminum rectangles with letters, numbers, and counties spelled out for the world to see. Today’s Iowa license plates would be recognizable anywhere, but they’ve evolved a lot over the years to get to where they are today. So how did they start out?
1911 Iowa first issued license plates made of steel on a statewide basis. 1922 Two-digit county codes first appeared on Iowa license plates.
1904 Iowa vehicle owners became responsible for providing their own license plates made of leather with attached aluminum characters, typically measuring 14×6".
1929 “Iowa” was first spelled out on plates instead of using the “IA” abbreviation as in previous years.
1943–1944 Due to a metal shortage caused by World War II, stickers were issued in place of license plates.
1979 The names of Iowa counties replaced the county numbers and were stamped at the bottom of Iowa license plates.
2018 The new Iowa license plate featuring a design using both city and farm imagery will start being used.
32 IOWA AUTO DEALER
1953-1955 “The Corn State” appears as a slogan on the bottom of Iowa plates. 1956 The first 6×12" Iowa license plates were created.
1998 A variation of the license plate design seen today was first used.
Getting Personal Custom Requests
“In 2017, there were 28,630 total plate applications, [and] 24,113 were for personalized plates,” said Andrea Henry of the Iowa Department of Transportation.
Follow the Rules
Custom plates: • Must use at least two characters • Can only use up to seven numbers and letters • Cannot contain punctuation • Cannot say anything profane, vulgar, or otherwise offensive • Cannot refer to illegal activities or substances • Cannot refer to a government agency • Must adhere to rules of the regular license numbering system • Cannot duplicate combinations of characters • Cannot contain foreign words that violate any of the above rules
“Some applicants are actually surprised and didn’t realize that their plate message could be considered offensive. Special attention is given to plates that have numbers as letters or what the plate may say in reverse as if you were reading it in the rear view mirror.” Andrea Henry Iowa Department of Transportation
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