IA | Street Smart | December 2019

STREET SMART IOWA INDEPENDEN T AU T OMOBIL E DE AL ERS AS SOCIAT ION | DECEMBER 2019 / JANUARY 2020

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DALLAS, TEXAS Permit No. 2079

NIADA Unveils 2019 Used Car Industry Report

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S TAT E A F F I L I AT E

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Unwrap, take a break, sit back in your favorite chair and get educated for the new year on niada.tv.

OVER 700 HOURS OF VIDEO EDUCATION AT YOUR FINGERTIPS.

MANAGEMENT MATTERS |

By Jennifer Finlay

PREPARING FOR A NEW YEAR

Evaluate Where You’ve Been and Where You’re Going We are coming to the end of 2019. Don’t let one year fade into another without really evaluating where you have been and figuring out where you are going.

How was your year? Did you achieve your goals? Did you even have goals in place?

What were your biggest struggles? Were you able to stay within budget?

These are some of the questions you should be asking yourself in preparation for the coming year.

Having a structured plan of action is one of the best ways to get started with a new year. Running a business is time-consuming and at times exhausting. Staying in front of potential problems or shortcomings that could sabotage your growth is critical to your success.

I know firsthand how easy is it is to neglect things. Sometimes it’s tough to just get through the regular day-to-day tasks. You have bills to pay and payroll to handle. Then you have finding the right inventory, selling sufficient vehicles and the list goes on and on.

But just keeping up will not push you forward. You know the saying, “You can’t keep doing the same thing and expect a different outcome.” If you want to sell more, grow the business, be more in compliance, build your reputation, etc., you have to work at it.

The end of the year is the perfect time to create a plan that will work for you. Set aside some time and determine where you want to be this time next year.

Here are a few tips and ideas to get you started.

THINGS TO RE-EVALUATE Spending: One of the best ways to evaluate this is to look at your P&L and vendor statements. Highlight the non-fixed expenses.

For example, your electric and water bills will not fall into this category. Non-fixed expenses would be things like water delivery, uniforms, printing expenses, office supplies, interest rates, bank fees and title services.

Shop these items – see what else is out there. None of these vendors or suppliers will ever call you and offer you a better deal because you have been with them for however many years. It doesn’t work that way.

If you find a better deal, call your current vendor and give them an opportunity to match or beat what you found. You will be shocked at the amount you can shave off your accounts payable.

Internal processes: This could include anything from sales procedures to advertising methods, hours of operation, the amount of your dealer fee and any policies concerning deposits, money back guarantee or in-house warranties.

Do you recall there being any issues with any of them in the past year? Is your dealer fee

still enough to cover what you need it to? Do you not have a dealer fee but wish you did? Are customers’ deposits refundable if they change their mind? Is that working for you?

All of these things can be adjusted.

I don’t advise you change these things back and forth throughout the year, however. That shows inconsistency and overall is not a good practice.

But the end of the year is a great time to make these decisions and have a plan ready for January 1.

Your exposure: Surprisingly I see many dealers fall short in this area. Of course, the end goal in this business is selling inventory.

It’s how the money comes in to sustain operations. Too often I see dealers with tunnel vision focusing solely on that.

There is a proper path to that end goal, and if you don’t recognize it you will never be as successful as you could be.

Exposure is simple. It goes hand in hand with relationship building.

It doesn’t have to cost a lot or consume a great deal of your time but it must be addressed consistently and frequently. So, what is this exposure I am talking about?

Easy – get involved!

There are so many ways to get your business in the spotlight. A great way to get started is by joining your local IADA. They have a huge network of dealers as well as industry resources that benefit dealers significantly. They also host events throughout the year that provide opportunities to build relationships with others in the industry.

Another way to gain exposure and achieve brand recognition is to sponsor things in your community. This could be a toy or food drive, blood drive, a little league team or even have staff members trade off volunteering at an animal shelter or food bank.

Most of these events will have some sort of literature printed to promote them. Your company name will be on it and given to their target market.

This type of exposure has a dual outcome.

First, it gets your name out there. Second, it makes everyone know you are the type of business they want to do business with.

How will you get new and different exposure this new year?

Training and education: This too is an area I see dealers neglecting. Don’t make that mistake.

Proper and ongoing training and education is a must, starting with the onboarding of new employees. You should have a detailed description and job outline in place for each employee. This reduces confusion about what you expect and how you expect duties to be carried out.

It seems like a simple concept but you would be surprised how important it is.

You know how you want the business to run. You have a vision of sales and customer service. Put a training process in place that will ensure your employees understand that vision and then give them the tools to make it happen.

Continuing education is equally important, not just for employees but also for owners and managers. Regulations, laws, and statutes change more frequently than most dealers realize. Staying on top of changes in these as well as industry trends will keep you at the front, and out of trouble as well.

Trying to stay in compliance with the DMV, the Department of Revenue, the Trade Commission, the attorney general and the IRS can be time-consuming and tedious when attempted on your own. There are several companies that offer training in these areas. Don’t try to go it alone. It’s more efficient when you have help.

Think about what you need to learn in the coming year that will help protect your business.

Safety: As a business owner, of course you want your employees to have a safe, hazard-free work environment. A safety manual is a good start, as well as regularly scheduled maintenance checks around the property.

In addition, customer safety should be a priority. One injury could potentially cost you what you’ve worked so hard to build.

An end of year physical inspection of the property and any equipment will determine if any repairs need to be made.

Appearance: Take the time to pull up to your dealership slowly and thoughtfully.

Look at everything. I mean, really look.

Are things overgrown? Is the paint faded?

How is your signage?

We tend to overlook these things as we focus on getting other things done.

Do the same thing when you step in the office. Is there clutter? Sit on the other side of your desk where your customer sits. See things from their perspective. How does it look?

Do you have things to make your customer comfortable while they are there?

Do you have an area for children to be occupied?

The more comfortable your customer is the more you will keep their attention. So think about what you could improve.

These are just a few things to think about when closing out a year and moving into a new one. It’s about striving to be better than the previous year. List your goals and changes you want to make and put a plan in place to make it happen.

Jennifer Finlay CPFS is director of marketing and sales at Sure Title. She can be reached at jennifer@flatags.com.

WWW.IOWAIADA.COM DECEMBER 2019 / JANUARY 2020 STREET SMART

3

Pete 035.JPG Europeon Motors

DEALER FORMS, PRINTING AND PROMOTIONS

The following businesses can provide Iowa auto dealers with dealer forms, printing and promotional items: WILSON DISTRIBUTOR SERVICE 1-800-634-0974 • www.wds-usa.com ERIKSON SOLUTIONS SERVICES, LLC 402-639-0664

Index

06............................................... Warehouse Auto 08.........................................................CarLawyer 10..........................................Employee Handbook 12..........NIADA Unveils Used Car Industry Report 13...........................................................Join IIADA 14.............................................ADESA Des Moines 18.................................. Lessons from Chick-fil-A

Advertisers Index

Manheim............................................................. 11 NextGear Capital ..........................................12-13 vAuto................................................... Back Cover

What’s New

F U E L S AV I N G S Take Advantage of Membership Benefits

Though colder winter temperatures can decrease your fuel economy, NIADA can still help you save money. Members across the country keep the number on the pump low with special fuel discounts that can save big. Access your fuel savings here: niada.savings4members.com/ programs/mySavings.spr.

Office

For information on how to become a member please contact Judy Wilson. iiada@netins.net 641-755-4177

NIADA Headquarters

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838

For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com.

Street Smart is published bimonthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 760065203. The statements and opinions expressed herein are those of the authors and do not necessarily represent the views of Street Smart or NIADA. Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright© 2019 by NIADA Services, Inc.

STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITORS Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT Christine Marie Haynes • christy@niada.com PRINTING Nieman Printing

KNOW WHERE TO LOOK FOR RECALL INFORMATION ON VEHICLES

Vehicle dealers needing information on factory recalls can visit www.recalls.gov or find manufacturer toll-free numbers by going to www.autopedia.com/html/ HotLinks.html and making contact with the respective automaker.

Know what recalls are pending on vehicles before you purchase them and give your customers peace of mind by checking out possible recalls before you retail the vehicle.

For further info please visit www. safercar.gov or www.safercar.gov/ vinlookup.

FIND ADDITIONAL RECALL INFORMATION AT THE FOLLOWING WEBSITES: www.recalls.gov and www.autosafety.org

515-237-3050

BUREAU OF INVESTIGATION AND IDENTITY PROTECTION

THE HOURS OF OPERATION ARE MONDAY THROUGH FRIDAY, 8:30 A.M. TO 3:30 P.M.

This phone line receives numerous calls so the IDOT encourages the use of our email (invbureau@iowadot.us) if the phone line is busy.

The bureau investigations information line provides a way for the public to request information, ask questions or file a complaint related to investigative duties and responsibilities.

This line is the primary point of contact to reach an investigator who is responsible for investigations in a specific area of the state of Iowa. To ensure accurate information is provided, the bureau investigations information line is answered by a bureau of investigation and identity protection investigator.

BOARD MEMBERS 2019-2020 PRESIDENT

Rick Theilen

Theilen Auto Sales 10536 265th Street Clear Lake, IA 50428 641-424-3352

CHAIRMAN OF THE BOARD

Jeff Schneider

Pocahontas Sales & Service P.O. Box 66 Pocahontas, IA 50574 712-335-4470

TREASURER

Judy Wilson, IIADA P.O. Box 337 Panora, IA 50216 641-755-4177

EXECUTIVE DIRECTOR Todd Thein

P.O. Box 356 West Branch, Iowa 52358 Phone: 319-521-7333

4

INVESTIGATIONS INFORMATION LINE

STREET SMART DECEMBER 2019 / JANUARY 2020 WWW.IOWAIADA.COM

REGIONAL REPRESENTATIVES

Darren Farmer

David A. Farmer, Inc. 1613 Franklin Center Point, Iowa 52213 319-849-2432

Kim Nelson

Nelson Automotive, LLC 300 Sandpiper Court P.O. Box 466 Polk City, IA 50226 515-984-9600

Jay Muller

Best Auto, Inc. 900 S. Grand Avenue Spencer, IA 51301 712-262-4581

David A. Farmer

David A. Farmer, Inc. 1613 Franklin Center Point, IA 52213 319-849-2432

Doug Wilson

Lake Country Automotive P.O. Box 341 Panora, IA 50216 641-755-3048

Marcus Hebert

CarsNow, LLC 2124 W. Broadway Council Bluffs, IA 51501 712-256-6757

Merrill Hitchcock

ADMINISTRATIVE OFFICES P.O. Box 337 Panora, IA 50216 Ph: 641-755-4177 Fax: 641-755-3247 Email: iiada@netins.net Toll Free: 866-962-9202

AUCTION REPRESENTATIVES

Dave LaFleur

ADESA Des Moines

Merrill’s Motors 317 N. 8th Street Winterset, IA 50273 515-462-1683

Monte Delzell

John Thiel, Jr.

Des Moines Auto Auction

Thiel Motor Sales, Inc. P.O. Box 287 DeWitt, Iowa 52742 563-659-9309

Doug Charleston

Charleston Enterprises, Inc. 20097 E. Panther Creek Road Adel, Iowa 50003 515-993-5959

Dealer’s Choice Auto Auction

Jami Schnoebelen

ONLINE MARKETING |

By Vallerie Vallencourt

SOCIAL MEDIA

Do’s and Don’ts

Regardless of the size of the social media site, it’s important to consider whether your brand’s target audience is active on that particular site. Larger social media sites, like Facebook, tend to cover a wide range of interests and topics, which makes it suitable for most brands. The following article from www.cbtnews.com gives all of us some insight into our social media and how to reach customers on a variety of items.

Connecting with customers via social media requires a different mindset from other forms of marketing because the goal is to create an ongoing two-way engagement.

The challenge in putting the “social” in social media requires dealerships to find new ways to connect with their customers. This challenge, however, is also an opportunity to build value in the customer’s mind before they ever step foot inside the dealership.

Here are a few “do’s and don’ts” to keep in mind when it comes to your dealership’s social media strategy.

DO’S Be consistent. Your dealership’s social media efforts should speak in one voice, and not “whoever has time” to post, comment or otherwise speak for the company.

Decide who is going to be responsible for representing the dealership, and then allow them to do it. Coordinate between departments and rooftops to ensure all of your online efforts maintain a steady, coherent focus and voice.

Keep a schedule. Decide how often you want to post on social media, and then stick to it. Too many dealerships neglect their online presence and then try to make up for it by flooding their followers’ feeds with irrelevant links, memes and anything else they can scramble to post.

There are tools available to determine the best times to post to better engage with your followers (and this can vary by platform, so plan accordingly), and which topics are getting the most traction. Plan your content in advance but stay flexible in case something timely occurs. Finding a balance of steady, relevant content is the most effective way to make social media work for you.

Talk about things other than sales.

It’s fine to let your followers know what you have available or if you’re running a sale this weekend, but there’s got to be more to your social media efforts than just advertising. People get online to connect, so give them something pertaining to your dealership that will capture their attention.

Are you hosting a fundraising event for a local charity that might be meaningful to your customers? Brainstorm a list of subjects that could be relevant to your audience and your engagement rates will soar.

Respond to every review. If a customer has taken the time to post something on a review site or your social media feed, show you value their input by responding to them as quickly as possible. If it’s a good review, thank them. If it’s a less-than-stellar review, ask how you could improve their experience and make it better.

Often, addressing an issue can turn an unsatisfied customer into a customer for life. Engaging when customers share their experiences puts a human face on your dealership and makes it more inviting to both that customer and those viewing the post.

Diversify. It can be difficult to keep up with the new social media platforms that seem to pop up overnight, but it’s important to maintain a presence where your customers are most likely to spend their time. The biggest platform right now is Facebook, but that could change quickly.

There are major players – Twitter, Instagram, Pinterest, SnapChat, YouTube and more – that deserve your attention.

Keep in mind that different demographics prefer different social platforms. In a recent study, the Pew Research Center found that while 68 percent of U.S. adults say they are Facebook users, 71 percent of Americans ages 18-24 use Instagram and Twitter, and YouTube is used by 94 percent of this upand-coming demographic. Be where they are.

IT CAN BE TEMPTING TO COMMENT ON THE DAY’S NEWS, THE POLITICAL CLIMATE AND A HOST OF OTHER TOPICS THAT MIGHT BE TRENDING ON SOCIAL MEDIA. ONE OF THE CARDINAL RULES OF SOCIAL MEDIA FOR RETAIL, HOWEVER, IS THAT IF YOU WOULDN’T SAY IT TO A CUSTOMER IN PERSON, DON’T POST IT ONLINE.

DON’TS Don’t cause controversy. It can be tempting to comment on the day’s news, the political climate and a host of other topics that might be trending on social media. One of the cardinal rules of social media for retail, however, is that if you wouldn’t say it to a customer in person, don’t post it online.

It’s too easy to hit a “third-rail” topic and alienate half your audience, so stay away from topics with that potential. Jokes are another area where if it’s the least bit offcolor or could be taken the wrong way, the risks far outweigh the rewards.

If the local high school team is going to the state championship, by all means, wish them the best, but be mindful of how a post could sound to someone who might not agree with you.

Don’t use canned responses. It’s important to respond quickly to reviews and comments, but taking shortcuts can undermine your efforts, or worse. You can have templates to help you structure your responses, but never use “canned” statements on social media.

A quick search that pulls up the same word-for-word responses tells the audience you don’t care enough to personalize the experience. Let the reviewer – and everyone following the conversation – know you care enough to address their individual post.

Don’t argue online. There are times when a bad review or complaint shouldn’t be addressed through social media. Being seen as argumentative in an online discussion isn’t a good look for your dealership.

If things go negative, ask the commenter to contact the dealership so you can address the issue offline and hopefully come to a settlement. They may still become a customer for life, but sometimes that has to happen behind the scenes.

Don’t ignore mistakes. Despite our best efforts, mistakes will be made. It’s easy to say the wrong thing or have a comment be misconstrued. If this happens, do not ignore it.

Once you become aware of it, act quickly.

Take the offending post down, and then apologize. Don’t attempt to justify or give reasons why people should “calm down.”

Own the mistake, accept responsibility, learn from it and move along. You’ll gain more respect while keeping a simple problem from becoming a far more complex one.

Social media is a great tool for communicating with your customers on an ongoing basis. By thinking ahead and having a plan in place, your dealership will connect with potential and current customers in the places where they are focusing more and more of their attention.

WWW.IOWAIADA.COM DECEMBER 2019 / JANUARY 2020 STREET SMART

5

DEALER SPOTLIGHT |

By IIADA Staff

WAREHOUSE AUTO

Your Family Car Store

Inventory

left to right - Katie Duffield, Shawn Carlson, Danny Isaac, Ray Wood and Amy Hautt Katie is in sales; Danny is in sales; Ray is a dealership driver.

Jeff Carlson – Warehouse Auto, Swisher, Iowa – Owner – “ World’s Best Boss”

Notice: There is no sign prohibiting fishing – Fishing Allowed Shawn Carlson, Internet Manager and Jeff Carlson’s son

Warehouse Auto sign – as you approach dealership

Inventory

Vehicle storage and prep area

Canopy – Protects Customers from rainstorm

Winding road down to Warehouse Auto

Satisfied Customer – Exterior sign

In 1992 Jeff Carlson opened “my kind of car dealership” in Shueyville, Iowa. This was where Warehouse Auto began. Located just 10 miles south of Cedar Rapids and 15 miles north of Coralville, it is an easy drive on Highway 965 (Old Highway 218).

Carlson said, “I grew up around the car business. When I graduated from college I got into advertising and marketing consulting.

After consulting with many businesses, my sense was, ‘Hey, if you think you know what to do, just do it!’

“I knew enough about the car business to have a simple focus for Warehouse Auto – offer people really good cars in a straightforward way. Now over 20 years later we've got a history of wonderful staff helping satisfied customers.

6

Amy Hautt, General Manager and Jeff Carlson’s daughter

Front view of Warehouse Auto

Inventory sitting beside lake view

“We welcome being your family (or your business) car store. And we really will help you enjoy car shopping.”

Jeff wanted his dealership to be friendly, inviting, and comfortable. He wanted the type of dealership that would create a real family feeling.

He knew many bigger dealerships had lost the personal connection with their customers. And he knew there had to be an easier way to buy and sell cars without the high-pressure tactics.

Everything was coming together – customers were enjoying the business model that Jeff and his staff were offering. Their customers really appreciated the no-pressure approach Warehouse Auto presented. With their growing success it was time to expand their business.

Jeff had been watching a specific property, knowing it would give Warehouse Auto the location needed to grow and expand while still maintaining the business model and having their customers enjoy the dealership’s buying experience. In 1996 Jeff relocated his dealership to a unique location just a few miles from Shueyville at 1272 Highway 965

STREET SMART DECEMBER 2019 / JANUARY 2020 WWW.IOWAIADA.COM

Enjoy Car Shopping Sign

NW in Swisher, Iowa.

The new location is just off Highway 965, with large mature trees and a large farm pond to the north. You follow a winding driveway that allows you to enjoy the view.

This dealership is unlike any other I have ever been to. You immediately feel comfortable, like you have been invited to a picnic, and look forward to meeting the staff.

When I contacted Jeff to swing by to take pictures and visit with the staff, Jeff laughed and said, “Stop over anytime. I won’t be there because, as my kids will tell you, I am semi-retired and gone the rest of time.”

Jeff’s daughter, Amy Hautt, is the general manager and has been working at Warehouse Auto for eight years. Shawn Carlson, Jeff’s son, has been working in every capacity in the dealership for the last nine years. His main responsibility is Internet manager. Jeff’s daughter Sarah Banowetz is the marketing manager.

Warehouse Auto is definitely a family business.

Warehouse Auto continues to stay true to its roots. The dealership offers late model, off lease vehicles still covered by

DEALER SPOTLIGHT - WAREHOUSE AUTO

the manufacturer’s warranty. They started by specializing in “family vehicles” such as minivans and sedans. That has expanded to crossover vehicles and SUVs. Pickups are starting to get more attention as well.

Dealership personnel attend auctions in person and online as well as buying vehicles directly from private parties. In the beginning they were able to buy most of their inventory from the new car stores in the area. “Like all dealerships, finding those clean, low mileage, desirable vehicles is our biggest challenge,” said Jeff.

Depending on the season, they will stock 50 to 75 units. During the spring market they will reach 100 units. While Warehouse Auto does not set sales objectives, they average 30 sales a month. They try to deliver one a day, and keep the inventory turning consistently.

Warehouse Auto uses several different types of advertising, although referral is their strongest form. They use auto shopper magazines, newspaper, billboards, television, radio, and Internet. They always advertise the dealership with the message they are “your family car store.” They advertise the entire buying experience, not just price.

Warehouse Auto does not have a service department, but they have teamed up with an independent service center that inspects SALES MATTERS |

every vehicle at their dealership. By using a third party for inspection and repairs, customers have the ability to review the inspection report and discuss the overall condition of the vehicle they are buying.

This also offers full transparency to the customer and allows Warehouse Auto to avoid vehicles that don’t meet their standards. They only want the best quality used vehicles to sell to their customers.

Since Jeff has placed the business in the capable hands of his children to run the day to day operations, he has been able to pursue his outside interests. He has created Journey Coaching: Relationships. Strengths. Purpose.

Journey Coaching gives individuals the opportunity to share their unique life story with another person – their coach – who can help individuals see it from a more objective perspective. Through their time together, individuals identify three key areas that influence personal growth: personal strengths, weaknesses, and philosophy or worldview. Individuals explore how their story fits into the bigger picture and develop some unique personal goals and strategies for future change.

Regardless of where the individual is starting, Journey Coaching can help him or her grow. Most people find they appreciate the opportunity to tell their story to someone who cares, as well as the lively discussions

that encourage personal reflection and understanding. All that is needed is an open heart and a desire to develop strengths within your purpose.

For more information, visit journeycoaching.org.

When you are in the area, stop by Warehouse Auto and experience how they have set themselves apart from other dealers in eastern Iowa. Jeff and his staff truly are thinking outside the traditional dealership, from the location and the approach to creating a complete buying experience. They have created a family environment for all of their past, present and future customers.

Warehouse Auto is open Monday and Thursday: 9 AM - 8 PM; Tuesday, Wednesday, and Friday: 9 AM - 6 PM; and Saturday: 9 AM - 5 PM. With three full time salespeople and two part time salespersons, Warehouse Auto has the staff to take care of all its customers’ needs.

Warehouse Auto has been a member of IIADA since 2003. Thank you to Jeff and his family for letting us get to know you and the wonderful way you have grown your business. Warehouse Auto – “your family car store” – is a dealership that has provided quality vehicles to their customers in a unique and relaxed setting.

Job well done, Jeff and team. We are proud to have you as members of IIADA!

By IIADA Staff

DIRECT MAIL

Contacting New Customers Reaching new customers is the goal, and long gone are the days of making cold calls from the telephone book. Most of today’s buyers either don’t have a landline phone or won’t answer it.

As a dealer, you must use other methods to reach new customers. The following approaches allow you to deliver your message while directing customers to the dealership.

Direct Mail Every day, you go to the mailbox wondering what the postal carrier has delivered. Optimistically you open the mailbox.

Will it be more bills? Maybe the title you have been waiting for? Or maybe a check?

You just never know. But one thing is for sure: you will receive some type of targeted direct mail. We receive direct mail every day, from local grocery ads to credit card promotional offers.

So what is direct mail? By definition it is unsolicited advertising sent to prospective customers through the mail.

Does your dealership send direct mail?

The objective is to make your mailer stand out, draw attention to entice the customer to open the direct mailer, and create a sense of value that benefits the customer.

Reaching Today’s Customer

Digital Advertising Emails Every day we turn on our computer. The first thing we open is our email.

Email, or electronic mail, is defined as the transmission of messages over communications networks.

How can dealerships use email to drive business?

It used to be an email blast – this was a single email message sent to a large group of recipients.

However, email blasts are no longer an email marketing best practice.

Email marketers should segment their lists and send targeted messages to their subscribers.

Dealers need to determine what their “target market” is when developing an email campaign.

This could be as simple as a sales or service email flyer.

Text Message Text messaging is the fastest point of contact with today’s customers.

A text message is also called SMS, which stands for Short Message Service and is the most widely used type of text messaging. With SMS, you can send a message of up to 160 characters to another device. It is a short message sent electronically, usually from one cell phone to another.

While not everyone has the ability to take a phone call or respond to an email, text messages are fast and direct while allowing to send and receive a descriptive message, price quote, or picture.

Dealer Management Systems have incorporated a text messaging application.

This allows your dealership do batch texting and provide templates to keep you compliant when contacting your customer.

Building your customer contact list can take time and dedication. Your staff has to collect and update customer information daily. Then you will be able to connect with your customers and inform them about service and sales specials being held at the dealership.

To make the biggest impact, you must use outside sources to reach a large potential customer base quickly. If you want to try direct mail, email, or text messaging, there are companies that provide these services.

Personally, I have used the United States Postal Service for a direct mail campaign and the Gannett Media company for a direct mail and an email campaign. Both were reasonably priced and effective in introducing my dealership to new customers.

Another successful approach is to contact employers in your market and have them distribute a direct mail piece to their employees. I created a direct mail flyer that offered savings and convenience to their employees. Management saw the value in promoting my dealership to benefit their business and employees at the same time.

WWW.IOWAIADA.COM DECEMBER 2019 / JANUARY 2020 STREET SMART

7

LEGAL UPDATE |

By Thomas B. Hudson and Nicole Frush Munro

THE CARLAWYER

Here’s our monthly article on selected legal developments we think might interest the auto sales, finance, and leasing world.

This month, the action involves the Federal Trade Commission, the Consumer Financial Protection Bureau, the National Highway Traffic Safety Administration and the Department of Justice. As usual, our article features the “Case of the Month” and our “Compliance Tip.” Note this column does not offer legal advice. Always check with your lawyer to learn how what we report might apply to you, or if you have questions.

FEDERAL DEVELOPMENTS CFPB releases report on trends in consumer bankruptcy: On September 25, the CFPB released its quarterly consumer credit trends report on consumer bankruptcy. The report describes how the volume and types of consumer bankruptcy filings have changed from 2001 to 2018 and the impact of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, and the 2007 recession.

CFPB and FTC to host workshop on accuracy in consumer reporting: The CFPB and the FTC will host a public workshop on December 10 to discuss issues affecting the accuracy of both traditional consumer credit reports and employment and tenant background screening reports.

CFPB to continue publication of consumer complaint database and make enhancements: On September 18, the CFPB announced it will continue the publication of consumer complaints, data fields, and consumers’ narrative descriptions of their complaints through its Consumer Complaint Database, while also making several enhancements to the database.

FTC comments on CFPB’s proposed debt collection rules: On September 18, the FTC submitted comments on the CFPB’s proposed debt collection rules. The FTC’s comments address the agency’s legal authority in the debt collection marketplace, describe its law enforcement, policy, and education efforts to protect consumers from unlawful debt collection practices, and address several topics covered by the proposed rule, including improvements to required validation notices; restrictions related to time-barred debts; passive debt collection; prohibitions on the sale, transfer, or placement of certain debts; collection of debts involving people who are deceased; restrictions on the times and places at which debt collectors may communicate with consumers; restrictions on the types of mediums (e.g., phone number, email, text messaging) through which debt collectors may communicate with consumers; restrictions on the disclosure of information

8

Keeping You Informed with the Latest Governmental Issues and Activity in the Used Car Industry

about debts to third parties; and telephone call frequency limits. This is required reading for Buy Here-Pay Here dealers.

NHTSA establishes standards for electronic odometer disclosures: On September 17, NHTSA issued a final rule establishing standards under which states may allow electronic disclosures of vehicle odometer readings. Among other changes, the final rule will also require odometer disclosures until vehicles are 20 years old, beginning with the 2010 model year.

Previously, sellers of vehicles 10 model years old or older at the time of sale were exempt from the odometer disclosure requirement.

CFPB releases latest supervisory highlights: On September 13, the CFPB released its Supervisory Highlights covering examinations (generally completed between December 2018 and March 2019) of activities related to the sale of guaranteed asset protection products, credit card origination and account servicing, consumer debt collection, furnishing of consumer information to consumer reporting agencies, and mortgage origination.

Among other findings, examiners found one or more instances of creditors selling guaranteed asset protection products to consumers who would not benefit from the products because the loan-to-value ratio associated with the consumers’ vehicle financings was low. Examiners also found one or more debt collectors sought interest not authorized by the underlying contracts between the debt collectors and the creditors.

In addition, examiners found deficiencies in furnisher compliance with the Fair Credit Reporting Act, including failing to timely complete dispute investigations, failing to provide results of dispute investigations to consumer reporting agencies, failing to timely correct and update previously furnished information, failing to provide timely notice to consumer reporting agencies that information is disputed by a consumer, and failing to implement reasonable written policies and procedures regarding the accuracy and integrity of account information furnished to consumer reporting agencies.

CFPB settles with debt collector: On August 28, the CFPB announced a settlement with Asset Recovery Associates, Inc., a debt collection company. The settlement resolves allegations ARA violated the Fair Debt Collection Practices Act and the Consumer Financial Protection Act of 2010 by threatening to sue or arrest consumers even though it did not intend to take such action, falsely representing to consumers that company employees were attorneys, threatening to garnish consumers’ wages or place liens on their homes even though

STREET SMART DECEMBER 2019 / JANUARY 2020 WWW.IOWAIADA.COM

it did not intend to do so, and representing consumers’ credit reports would be negatively affected if they did not pay, even though ARA does not report consumer debts to credit reporting agencies.

Under the settlement terms, ARA will pay at least $36,800 in restitution to affected consumers and a $200,000 civil money penalty to the Bureau. The consent order also prohibits ARA from continuing to engage in this conduct and requires ARA to record calls with consumers to help ensure collectors do not make false statements in the future.

FTC settles with school operator over use of lead generators: On August 27, the FTC announced a settlement with the operator of several post-secondary and vocational schools for using lead generators that employed false and deceptive tactics.

The FTC alleged the lead generators falsely represented to consumers the schools were affiliated with or recommended by the military, used deceptive tactics to induce consumers to submit their personal information, falsely told consumers their information would not be shared, and called consumers registered on the National Do Not Call Registry, in violation of the Telemarketing Sales Rule.

In addition to prohibiting misrepresentations about the defendant’s products or services, the settlement requires the operator to pay $30 million in consumer redress, review all materials that lead generators use to market its schools, investigate complaints about lead generators, and not use or purchase leads obtained deceptively or in violation of the TSR. CASE OF THE MONTH Usually our case of the month involves a reported opinion in a civil lawsuit by or against a dealer. Sometimes, though, we report on enforcement actions by federal or state authorities. This month, it’s one of the latter, and the enforcement action is by a federal regulator we don’t often see in the car sale and financing arena.

This time, the Fair Housing Testing Program conducted by the Department of Justice led to a lawsuit against a Maryland independent dealer. The suit alleged defendant Guaranteed Auto Sales along with its owner and manager, Kelly Ann West and Robert Chesgreen, respectively, violated the federal Equal Credit Opportunity Act by offering different credit terms based on race to those seeking to buy and finance used vehicles in Glen Burnie, Md. DoJ said the suit is based on the results of testing the department’s Fair Housing Testing Program, in which individuals pose as prospective car buyers to gather information about possible discriminatory practices.

ASSOCIATION NEWS

IIADA Magazine

IOWA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION | APRIL/MAY 2019

STREET SMART

In 2005 the IIADA board was notified that NIADA was going to assist their affiliate associations in the production of a state association magazine. The board decided they needed to name the magazine and asked each board member to submit a suggestion. The person whose suggestion was selected would receive a steak dinner.

There were 21 suggestions made by the 13 board members. The creative title suggestions included Tailpipe Times, Fuel Injected Times, The GET TO KNOW Driver’s Seat, Parking Zone, Speed YOUR LEGISLATORS Bumps, IIADA Dealer News, and MAKE YOUR VOICE HEARD Street Smart.

There was one that got a little risqué – The Air Bag, with the explanation, “Yeah, we are all full of hot air, but we could save your [bleep] someday.” This was suggested by none other than Roger Poulsen from The Car Guys in Atlantic, Iowa, who was president at the time.

The board voted and the winner was the name suggested by Merrill Hitchcock of Merrill’s Motors in Winterset – Street Smart. The first issue of Street Smart was published in January 2006.

After I read the comics, I mean the bi-monthly president’s letter (before I was writing them), I would look for the dealer spotlight in each magazine where we got to see the owner, staff and the inside and outside of the highlighted dealership.

The articles always revealed the dealership location and how the dealership does business. These stories highlighting our members have been very interesting and in many cases helpful to those who enjoy reading them.

The information provided in Street Smart over the years has been invaluable. It has included where to look for recall information, DOT investigators information line, IIADA board members, updates on auctions, tips on customer do’s and don’ts, IIADA approved benefit providers, updates from the Iowa legislature and many regulatory updates as well as information on dealer education classes and service departments.

The magazine has put the NIADA/IIADA dealer code of ethics in front of all dealers as a reminder. We have included an article by counselor Tom Hudson, author of the Carlawyer, who often says “stay legal!” Many articles have been written about dealers that get busted and so much more.

Our October/November 2019 magazine had a big headline “Street Smart Going Digital” as NIADA notified the state affiliates mid-year the state magazines would be going digital as so many newspapers and magazines are doing these days to cut production costs. In early fall we were advised NIADA is not going to go digital but discontinue production of the magazines altogether.

I, for one, will miss this magazine greatly. Statistics show that when a person reads an article, you know the touchy-feely thing, the mind retains the information for a much longer period of time. I know I can use all of the help in information retention I can get!

It has been an honor to work with and be a part of all that the IIADA staff has dedicated their time and energy to for the Street Smart magazine since its inception and to be shared with over 1,800 dealers statewide. I tip my hat to all IIADA members, especially the past presidents and board members as well as those who serve this association.

I hope some of the Street Smart readers found my president’s letters to relay some fun facts combined with a bit of good information and definitely some humor. I always found fun and laughter in past president’s letters by Jeff Schneider that often lifted my day.

I will sign off for now with a familiar saying from Porky the Pig –“That’s all, folks!”

P A G E

1 0

DALLAS, TEXAS Permit No. 2079

PAID

Tom (thudson@hudco.com) is of counsel and Nikki (nmunro@hudco.com) is a partner in the law firm of Hudson Cook, LLP. Tom has written several books and is the publisher of Spot Delivery, a monthly legal newsletter for auto dealers. He is the CEO of CounselorLibrary.com, LLC and the editor in chief of CARLAW, a monthly report of legal developments for the auto finance and leasing industry. Nikki is a contributing author to the F&I Legal Desk Book and frequently writes for Spot Delivery. For information, visit www.counselorlibrary.com. © CounselorLibrary. com 2019, all rights reserved. Single publication rights only, to the Association. HC/4849-9195-1784.1

PRESIDENT’S LETTER

PRSRT Standard U.S. Postage

The complaint, filed in federal court in Maryland, alleges the defendants engaged in a pattern or practice of discrimination by offering less favorable auto-finance terms to African American testers than white testers. Most significantly, officials said the complaint alleges employees of Guaranteed Auto Sales told African American testers they needed larger down payments than white testers for the same used cars, and told African American testers they were required to fund their down payments in one lump sum, while they gave white testers an option of paying in two installments.

“Using race as a factor in determining credit terms, including the amount of down payment a customer must pay, is despicable and illegal,” said assistant attorney general for the civil rights division Eric Dreiband.

Keep in mind these charges by the DoJ are just that – charges – and the allegations still must be proven.

A couple of points: We’ve heard of regulators employing mystery shoppers to make discrimination cases, but so far had seen little evidence of the practice.

If, however, anything remotely like these activities is going on at your dealership, you need to consider whether that next “up” might well be a DoJ staffer (or, maybe worse, an action news reporter with a hidden camera and mic).

This Month’s CARLAWYER Compliance Tip Every time your dealership sells a vehicle using a retail installment contract, it is entering into a transaction governed by the Uniform Commercial Code. Parts of the UCC apply to sales (Article 2 of the UCC) and secured transactions (Article 9). These UCC provisions apply even when they are not expressly set forth in the agreement between your dealership and your vehicle buyer.

Most UCC provisions can be varied by agreement between the parties, but others cannot. Do you know the basics of how the UCC affects your transactions and the rights of your dealership and your buyers?

A brief outline memo to your compliance officer from your lawyer explaining the UCC’s role in car sales and financing would be money well spent. We don’t recommend doit-yourself legal work, but if you are allergic to spending money on legal fees, check with Mr. Google as there are several “The UCC for Dummies” type books available.

S TAT E A F F I L I AT E

W W W.IOWAIADA.COM

Rick Theilen, President of IIADA Theilen Auto Sales, Clear Lake, Iowa WWW.IOWAIADA.COM DECEMBER 2019 / JANUARY 2020 STREET SMART

9

MANAGEMENT MATTERS

EMPLOYEE HANDBOOK

Time to Review

Every year your business needs to review your employee handbook and make any necessary changes and updates. If your business does not have an employee handbook, take the time to create one. It will allow every employee to understand what is expected of them and what they can expect from their employer.

An employee handbook will cover some of the following areas.

Laws and policy against workplace harassment: Employees are protected under both state and federal law against workplace sexual harassment. Federal law remedies for workplace discrimination and unlawful harassment are based upon Title VII of the Civil Rights Act of 1964, which applies to employers with 15 or more employees.

Hours of work: Defines the expected work hours on a daily, weekly, and monthly basis.

Attendance: Work attendance is, of course, an employee's ability to be at work, at their given start time, and doing their assigned work at that time.

Punctuality: Punctuality is especially important if your employment includes shift work or requires team involvement.

Even if your work doesn't involve daily time requirements of any kind, co-workers will probably notice if you consistently arrive late or have difficulty meeting project deadlines.

Employment policies and procedures: Employee policies and procedures are descriptions of how all employees, regardless of job description or title, are expected to conduct themselves. Employees are expected to use this handbook as a guide, referring to it often to find information on the company as well as guidelines on vacation, sick time and pay.

Bullying: Workplace bullying refers to repeated, unreasonable actions of individuals (or a group) directed towards an employee (or a group of employees) intended to intimidate, degrade, humiliate, or undermine, or which create a risk to the health or safety of the employee(s). Workplace bullying often involves an abuse or misuse of power.

Position: Position, job, place, and situation refer to a post of employment. Position is any employment, though usually above manual labor. Job is colloquial for position, and applies to any work from lowest to highest in an organization, whether as a cook or manager.

Description: A job description is an internal document that clearly states the essential job requirements, job duties, job responsibilities, and skills required to perform a specific role. A more detailed job description will cover how success is measured in the role so it can be used during performance evaluations.

Salary: A salary is a form of payment from an employer to an employee, which may be

10

specified in an employment contract. It is contrasted with piece wages, where each job, hour, or other unit is paid separately rather than on a periodic basis.

Insurance: An insurance policy protects employers from liabilities arising from disease, fatality, or injury to employees resulting from workplace conditions or practices.

Benefits: Employee benefits are defined as a form of compensation paid by employers to employees over and above regular salary or wages. Employee benefits come in many forms and are an important part of the overall compensation package offered to employees.

Holiday Pay: Holiday pay is any form of paid time off, such as a government-declared holiday, maternity leave, or sick time.

Sick Leave: Employees may use paid sick leave to care for their health needs or the health needs of their family members, including when the employee’s workplace or their child's school or place of care has been closed by a public official for any healthrelated reason as well as absences that qualify for leave under the state's Domestic Violence Leave Act. Jury Duty: It is the obligation of a citizen to serve on a jury when called. One of the highest duties of citizenship, it accrues from the constitutional right to be tried by a panel of one's peers and involves direct participation in the administration of justice.

Expense Reimbursement: Reimbursement is an act of compensating someone for an expense. Often, a person is reimbursed for out-of-pocket expenses when the person incurs those expenses through employment or in an account of carrying out the duties for another party or member.

Computer Security: Computer security is basically the protection of computer systems and information from harm, theft, and unauthorized use. It is the process of preventing and detecting unauthorized use of your computer system. Cybersecurity is defined as protecting computer systems, which communicate over the computer networks.

Internet Usage Policy: The guidelines and instruction given to employees concerning the use of Internet such as the web, email and chat conferences. An Internet Usage Policy stipulates all prohibitions such as access to pornographic sites, conducting illegal activities and sexual harassment.

This is only meant to be an overview for your dealership to update or create an employee handbook.

A sample employee handbook can be found at the following address: www.501commons. org/resources/tools-and-best-practices.

This article was composed from information provided on the 501 Commons Website as well as other sources.

STREET SMART DECEMBER 2019 / JANUARY 2020 WWW.IOWAIADA.COM

ATTENTION DEALERS

ODOMETER LAW

EXPANDED

Changes to Come About in 2020

In September 2019 the U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) announced the publication of a final rule establishing standards under which states may allow for odometer disclosures in an electronic format.

Odometer fraud is a federal crime and NHTSA has required sellers to disclose vehicle odometer readings at the time of sale for decades.

Current law does not require odometer disclosure with the transfer of vehicles at least 10 model years old. Due to the current average vehicle age of almost 12 years, an increasingly large proportion of the fleet is subject to a heightened risk of odometer fraud.

To accommodate older vehicles, the final rule will require odometer disclosures until vehicles are 20 years old, beginning with the 2010 model year.

This final rule will be effective in early 2020.

INDUSTRY NEWS

SERVNET ANNOUNCES LEADERSHIP TEAM

Brasher and Sullivan to Assume Leadership of Group ServNet has announced the appointment of industry veterans John Brasher and Robert Sullivan to head ServNet’s executive team. ServNet president Eric Autenrieth said they assume leadership of the auction group Jan.1, 2020. Brasher has been named executive director, while Sullivan will serve as administrative director.

“We are delighted to welcome two individuals of such caliber and standing in the auction industry to ServNet’s executive team,” said Autenrieth. “Both John and Bob have years of experience in the industry and are champions of the independent auction. Both former owners of ServNet auctions themselves, they bring unique and valuable perspectives to their new leadership positions.”

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WWW.IOWAIADA.COM DECEMBER 2019 / JANUARY 2020 STREET SMART

11

ASSOCIATION NEWS

NIADA UNVEILS 2019 USED CAR INDUSTRY REPORT

Most Comprehensive Picture of the Used Vehicle Industry NIADA presents its 2019 Used Car Industry Report, an annual array of facts and statistics that provide the clearest, most comprehensive picture available of the state of the used vehicle industry and the trends shaping its future.

The report, which was unveiled in September at the NIADA National Policy Conference in Washington D.C., was delivered to association members along with the October edition of Used Car Dealer.

It’s also available online – free for NIADA members and for purchase by non-members – at www.niada.com.

The report includes new insights into familiar areas, including the 2019 Car Buyer Journey Study from Cox Automotive, an important look at the customers purchasing used vehicles and how they shop; Edmunds’ Used Vehicle Outlook, including CPO data; GoldStar by Spireon’s look at GPS technology’s effect on the impact of impound fees; CarGurus’ section on auto buying patterns by body style; and the latest on digital consumer

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STREET SMART DECEMBER 2019 / JANUARY 2020 WWW.IOWAIADA.COM

experiences in auto finance from RouteOne. The report also explores new areas, such as Dominion/Cross-Sell’s look at Carvana’s business model and how to compete with it, Carfax’s research into merchandising in today’s digital world, tips from Home Loan Investment Bank to help customers get credit application approvals, TrueCar’s study of trade-in process trust issues, insight into dealer ROI from Autosoft and a section detailing the rise of mobile chat and lead generation data through that growing marketing medium from new NIADA industry partner OfferUp. And, of course, the Used Car Industry Report includes the staples – NIADA’s member and business confidence surveys, Buy Here-Pay Here benchmarks from NABD, Subprime Analytics and NIADA Dealer 20 Groups, used car sales by channel by month from J.D. Power/NADA Used Car Guide, information on the auto finance market from Equifax, Black Book’s retention values analysis and Auction Perspectives from industry leaders.

PRODUCTS & SERVICES |

By Rick Theilen, President of IIADA

JOIN IIADA TODAY

Let us Help You Save Money Dear Iowa auto dealer: Every dealer I know likes to save money just as much as they like to make money.

Most of us can remember when we sold our first car and made a nice profit – we wanted to repeat that as often as we could through the years.

While our profits have increased because we sell products such as service contracts and warranties to our customers to enhance our profits, our overhead has also increased.

IIADA has put together various programs and services that any dealer can participate in to save money and make money. That is why we encourage you to consider becoming a member of IIADA. Here are just a few areas in which IIADA membership benefits you: • Lenders – Our members work with several Iowa credit unions and banks as well as lenders for credit challenged buyers.

• We offer a 6 percent discount on your lot owners insurance through Auto-Owners.

• We have an auto auction coupon card offering $25 off of buy and sell fees coupons at various Midwest auto auctions.

• We have a health insurance program for

our members, with vision/dental also available.

• We have a scholarship program for our members’ children and grandchildren.

• We have two of the most respected dealer software management systems.

• We have a monthly newsletter – keeping our members informed of regulatory requirements.

• We have lobbyists who protect our interests at the Iowa legislature and in D.C. • We have an active help desk to assist dealers with problems.

• We have ongoing communications with our regulators such as the IDOT and the AG. When you join IIADA you also become a member of NIADA – our national association – two memberships for the price of one.

Check us out at www.iowaiada.com and www.niada.com. You can see both associations offer our members many savings on products and services. If you are looking for ways to save money and make more money we invite you to join IIADA. Let us know if you have any questions.

We would be happy to discuss them with you.

ASSOCIATION NEWS

GOODBYE – FAREWELL – SAYONARA

Last Issue of Street Smart

We sincerely hope you have enjoyed reading Street Smart. This is the last issue.

We had previously advised the magazine would be published in a digital version, but that will not be the case.

IIADA has very much enjoyed bringing this magazine to Iowa dealers since 2006, but all things must change.

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WWW.IOWAIADA.COM DECEMBER 2019 / JANUARY 2020 STREET SMART

13

AUCTION SPOTLIGHT |

By IIADA Staff

ADESA DES MOINES AUTO AUCTION

Insight into the Auction Industry

ADESA Team

On the Block with Dave LaFluer

Belinda Deal on PSI

On the Block with Kevin Stumm and Kevin Kopaska

ADESA Des Moines is located near Grimes, Iowa, and sits on nearly 60 acres of prime industrial land. Grimes is the 31st largest city in Iowa and the auction is located near I-35/I-80 in between Omaha, Nebraska, and Davenport, Iowa.

ADESA auctions are a part of KAR Auction Services, headquartered in Carmel, Indiana.

The company recently rebranded to KAR Global and has 200 locations in 10 countries.

Kevin Stumm is the general manager at ADESA Des Moines, which recently celebrated its 20th anniversary sale. Kevin said, “It was humbling to hear stories from our dealers who have been coming to ADESA Des Moines week after week through all those years.”

Kevin has been in the car business for over 25 years, most of that time working with auctions. He started his auction career at an auto auction in Billings, Montana. His wife’s grandfather started that auction and was instrumental in founding NAAA, receiving the NAAA Pioneer Award in 2007. After the family sold the business, Kevin moved to Wisconsin to run the Wisconsin Auto Auction.

In 2007 the dot.com business was taking off and he changed his career path to work with Cox Automotive, CarSoup.com, Lee Enterprises and started VinFocused before joining the ADESA family as the GM of ADESA Des Moines.

“This is really a coming home to me,” Kevin said. “I missed the action and camaraderie of the dealers. Where else can you put on an event for your friends and get paid for it? I’m truly blessed.”

Kevin was born and raised in Billings, but has lived in the Des Moines metro area for over 13 years. “Iowa is definitely home,” he said. “I’ve been married to my wife, Chris, for 25 years. She is a fourth grade teacher in Johnston. Our son Jake is 20 and lives in Ankeny. Tanner, who is 22, attends Iowa State University in Ames.”

14

Kevin Stumm

Auction Lanes

Kevin grew up in the Rockies, which instilled a love of anything outdoors. When he is not working, he enjoys bike riding, golfing, hiking and skiing.

We have noticed Kevin enjoys talking with the dealers and asked if he would share some of the important and valuable lessons he has learned in their conversations.

“That is a great question,” Kevin said, “And as you mentioned it is my favorite part of the job. Our dealers are an amazing group of smart business people. They guide everything we do at ADESA Des Moines.

“One thing I hold true and they tell us all of the time is that this is a relationship business – truly caring for their welfare will always pay off. Selfless passion to see others succeed reaps win/win results.

“I feel very fortunate to be asked to be part of such an amazing group of people at ADESA Des Moines. Our team has made it easy to do my job and they have been very welcoming.

Generally, as we make changes, I expect an adjustment period. Those changes have produced significant growth over the last six months. Running 600-800 vehicles through our lanes weekly has caused some growing pains, but we’re working through it and having a great time doing it!”

How about auction charity work?

Kevin said, “Since we all put so many hours in at the auction it makes sense to incorporate our passions. We partner with several organizations throughout the year such as Teen Challenge, one of our business partners that we believe in. TC has done great things in our community. The Puppy Jake Foundation and Wounded Warrior Project are also organizations we help to raise funds for.”

We asked Kevin to give us his insight as to where he sees the physical auctions heading in the future as more online auctions become available to buyers and sellers. Kevin responded, “If you remember

STREET SMART DECEMBER 2019 / JANUARY 2020 WWW.IOWAIADA.COM

Auction Lan

not long ago several experts said that retail dealerships were a thing of the past and all retail transactions were going to be online.

That didn’t happen and I don’t believe it will happen in the wholesale arena either.

“People buy from people they like and trust.

I do believe that, like retail, online changes the way we need to conduct our business and allows for opportunities we would not have had otherwise. Our simulcast and DealerBlock solutions are good examples. It has required the auctions to do a better job of writing condition reports, taking good photos and grading the vehicles correctly.

“On the other hand, it increased our buyer base nationwide. TradeRev adds the ability to help dealers the way they choose. Whether that is online, or in lane, or as a second chance to sell, ADESA Des Moines can provide a 360 degree inventory management solution and the data we use helps dealers make smart choices – I am very excited to see the evolution of automotive wholesale!”

All auction personnel have good stories to tell. Here is Kevin’s: “When I moved from Montana to Wisconsin, I left a well-established business in Billings with consignment from GM, Ford, GMAC, Ford Motor Co, and GSA plus a salvage sale and our regular weekly open sale with several hundred vehicles running. We had over 100 acres filled with cars.

“Wisconsin was a new auction competing for business with 11 other auctions in the state. We had less than 100 vehicles running through a Friday open sale. It was tough to grab market share, but we grew this auction to over 400 vehicles a week and eventually sold the auction to ADESA. “Both of these sales taught me a lot about the auction business and if we come up short in meeting or exceeding a customer’s expectations we work to improve our performance. What keeps me up at night is

Lining up for the sale

Ready for the sale

nes 2

Entrance to ADESA Des Moines

Ready for the sale 2

Auction Lanes 3

never hearing of an issue that a dealer might have and not having the opportunity to make it right.”

We have noticed that auctions have placed a great emphasis on safety for auction employees and dealers and would like to know future plans for safety measures.

Kevin said, “Safety is a major focus at ADESA Des Moines. Our Safe T. Sam Initiative is always top of mind and practiced daily.

Recently we put safety barriers outside of all vehicle exits and plan to do the same inside the lanes. Our employees go through a Safe T. Sam training program every month and we have weekly drivers meetings focusing on safe procedures.”

According to Kevin, dealers should attend ADESA Des Moines because “we have made major improvements to the facility, increased the weekly consignment with the addition of GM Financial and many dealers who didn’t consign with us before as well as upgrading our technology, all while renewing our focus on what’s most important – our dealers.”

Kevin had some advice for dealers: As the industry continues to change, dealers should find partners for their business that have the ability to change with them. Dealers today are competing in ways that were never imaginable 15 years ago. Online sources, data, technical platform availability and a nationwide presence will continue to grow in importance for a dealership’s wholesale business. Dealers should look for auctions that are leaders in those categories to accomplish their goals for turning inventory.

David LaFleur is the general sales manager at ADESA Des Moines. He is an auction professional who has been in the auto industry for 18 years. A lifelong “car guy,” David started as a lot porter at Huber Chevrolet in Omaha while still in high school.

He has worked as a service advisor, car salesman, F&I manager and sales manager at

Dave LaFluer

several new car stores in the Omaha area.

He started as a dealer sales rep for Manheim Omaha in 2001 and was promoted to Dealer Sales Manager in 2003. In 2010 David accepted a position as operations manager for the Nebraska Auto Auction in Lincoln, Nebraska, and started in his current position with ADESA Des Moines in August 2015.

Dave was born in Sioux City, Iowa, and raised in the Omaha area. He has three children – all girls – aged 8 to 21. His hobbies are old cars and golf. Dave enjoys visiting with the dealers at the auction and now and then gets some of them really charged up as he has a unique way of teasing some of them on a regular basis.

We asked Dave about his biggest challenges in helping run a successful auction operation.

He said, “Having the right products that are competitively priced. These days, dealers have more ways to sell their inventory, both retail and wholesale. Digital and mobile platforms give dealers options to the traditional ways of selling cars. To compete, we have to match our dealers with the right products and platforms.”

What does Dave find the most rewarding experience in working with dealers, staff and consignors to make the auction run smoothly?

Dave said, “A dealer’s time is valuable.

Ideally, we create partnerships with our dealers that maximize returns on their wholesale inventory in a seamless fashion, allowing them more time to focus on their retail business. We handle all the logistics that enable our dealers to come to our sale to buy or sell inventory and get back to their stores and we try to have a little fun along the way.”

The biggest change Dave has seen in the auction industry over the years has been the transition to digital and mobile auctions, as well as the use of data to give dealers a clearer picture of the landscape of the local market.

Alex Taking Bids

So much of how dealers transact business can now be done on simulcast and other digital and mobile platforms such as DealerBlock and TradeRev. Now, huge amounts of data can be leveraged to help dealers source the right inventory and sell in the right arena.

We asked Dave what his prediction would be regarding the brick and mortar auction facilities. He thinks we will see more auctions staged in a virtual arena – units offered live in the physical space but not driven across the block to address the demand for quicker, less cumbersome ways to buy and sell inventory as well as to provide a safer environment.

ADESA and other tech and data based companies are providing digital products that allow a dealer to source inventory from the comfort of their dealerships. Part of what makes this viable is providing dealers with more comprehensive vehicle condition reporting and high resolution photos. The more information we’re able to provide, the more confident that dealer will be when making buying decisions.

Dave said, “We talk so much about the growing number of wholesale transactions done via some digital platform, but having success at auctions is not all that complicated.

“Successful consignors have their units at the auction in advance of sale day. Their units are clean and ready to sell. They price their units to the market and they offer their units on a consistent basis and sell a large percentage of the units they offer. A dealer who sells with consistency and discloses his units accurately usually has great success.”

IIADA would like to thank Kevin and Dave for their time in allowing us to get to know them. We can tell these guys really like what they do because they enjoy talking about all of the areas that make an auction click.

ADESA Des Moines has been a member of IIADA for 20 years and their partnership is greatly appreciated.

WWW.IOWAIADA.COM DECEMBER 2019 / JANUARY 2020 STREET SMART

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APPROVED MEMBER BENEFIT PROVIDERS

ADVANCED BUSINESS PRODUCTS, INC.

Printing, Promotional Products, & Wearables Contact: Scott Jayne PO Box 71547 Des Moines, IA 50325 Phone: 515-225-6343 Toll Free: 888-464-2274 Fax: 515-225-6510 Toll Free Fax: 877-987-3514 Website: www.go4abpi.com

AUTOMOTIVE FINANCE CORPORATION – AFC

Contact: Miranda Cumming, Branch Manager 1800 S.E. Gateway Drive Grimes, Iowa 50111 Phone: 515-986-1220 E-mail: Miranda.cumming@ autofinance.com Website: www.autofinance.com

ASSOCIATIONS MARKETING GROUP INC

Health Insurance Jesse and Lee Patton 1112 Maple Street West Des Moines, Iowa 50265 Toll Free: 800-798-6772 Phone: 515-270-8178 Fax: 515-270-0398 E-mail: leepatton@amgi-dsm.com

AUTO OWNERS INSURANCE

6% DISCOUNT TO ALL IIADA MEMBERS

AUTOJINI.COM

Websites for Dealers Contact: Syed Azam 310 Main Street Ste 201 Ames, IA 50010 Phone: 515-232-2024 E-mail: syed@octadyne.com Website: www.autojini.com

FOLLOW-UP PLUS

“Customers for Life” Repeat Sales, Referrals & Customer Loyalty Contact: Terry & Sue Newell P.O. Box 294 Carthage IL 62321 Ph: 217-357-9032 Fax: 217-357-9076 E-mail: tlnewell@frontienet.net

INNOVATIVE DEALER SERVICES, INC.

S & C AUTOMOTIVE, INC.

Vehicle Service Contracts Dealer Software Management Systems GAP Protection P.O. Box 23189 Complete Appearance Protection Shawnee, Kansas 66283 Product and Sales Training 913-312-7344 – Ext. 11 Accessory Sales & Installation Fax: 810-821-1718 3828 70th Street Website: innovativedealer.com Urbandale, Iowa 50322 Terry Webb P -515-276-9622 CITIZENS COMMUNITY twebb@innovativedealer.com Fax: 515-276-8472 CREDIT UNION Contact: Doug Eckhart 2012-1ST AVENUE SOUTH FRAZER PREFERRED WARRANTIES, INC. doug.eckhart@scautomotive.net Dealer Management Software 200 Pinebrook Place FORT DODGE, IOWA 50501 Website: www.scautomotive.com 6196 US Highway 11, PO Box 569 P.O. Box 278 Phone: 515-955-5524, Ext. 202 THE CYCLONE AGENCY Canton, NY 13617 Orwigsburg, PA 17961 Fax: 515-955-8241 F&I Training, Sales Training, Phone: 888-963-5369 Website: www.warrantys.com CU DIRECT (CUDL) Service Contracts Fax: 888-963-3366 Iowa contact: Larry Bohlen Contact: Paul Bejarno, Area Account Website: www.Frazer.com Rob Miller and Chris Hochstein Cell: 515-322-6397 Representative 515 N Jefferson Way Ste H Email: info@Frazer.com Fax: 1-877-233-0298 Phone: 515-988-0521 Indianola, IA 50125 Email: lbohlen@warrantys.com Email: paul.bejarno@cudirect.com GLOBE ACCEPTANCE INC Phone: 515-962-0099 or Sub-prime Lender PROSOURCE FINANCE Website: www.cudirect.com 515-962-0100 We Do F & I for You Contact: Beth Dieter 2855 E. Guasti Road, Suite 500 Fax: 515-961-8400 2540 106TH Street, Suite 202 P.O. Box 65400 Ontario, CA 91761 Rob: 515-205-5900 cell Urbandale, Iowa 50322 West Des Moines, Iowa 50265 Chris: 515-205-5800 cell ERIKSON SOLUTIONS E-mail: cyclone@thecycloneagency.com 800-795-1765 Phone: 515-225-9067 SERVICES, LLC globeaccepts@globeacceptance.com jeff@prosourcefinance.com Website: www.thecycloneagency.com F & I Compliance & Sales Training Website: www.GlobeAcceptance.com website: www.ProSourceFinance.net U DRIVE ACCEPTANCE Alpha Warranty Services CORPORATION Classic Essential GAP – Norman & Co. GREATER IOWA CREDIT UNION REYNOLDS & REYNOLDS INC. Contact: Scott Erikson 1509 Baltimore Drive Dealer Bonds An Iowa Sub-Prime Finance Ames, Iowa 50010 Company 15210 Castelar Circle Long Term Care Insurance Jason Kolar, Dealer Direct Manager Various types of insurance P.O. BOX 3107 Omaha, Nebraska 68144 Ph: 515-954-1621 Sioux City, Iowa 51102 P: 402-639-0664 Contact: Dean M Clark F: 515-956-6942 Jeremy Bennett eriksons@aol.com 300 Walnut Street Ste 200 jkolar@greateriowacu.org Office: 712-258-0269 Des Moines IA 50309 FIRST INTERSTATE BANK jeremy@udriveac.com Phone: 515-243-1724 Indirect Lending GREEN STATE CREDIT UNION Toll Free: 800-767-1724 Dave Folkedahl Jarret Eshuis, AVP Fax: 515-243-6664 Indirect Lending Manager P.O. Box 903 d.m.clark@reynolds-reynolds.com P.O. Box 800 Brandon, South Dakota 57005 North Liberty, Iowa 52317 Phone: 605-321-9759 Phone: 319-341-2206 Fax: 605-582-6558 Email: dfolkedahl@uiccu.org Email: Jarret.Eshuis@Fib.Com

VERIDIAN CREDIT UNION

1827 Ansborough Avenue P.O. Box 6000 Waterloo, Iowa 50704-6000 800-235-3228 Kara Van Wert –Tony McKillip

WILSON DISTRIBUTOR SERVICE

Car Brite Products Forms, Detail Supplies, Equipment & More Jason & Lisa Goody 105 N McCoy Mt. Pleasant IA 52641 Phone: 800-634-0974 Fax: 319-385-2927 E-mail: jason@wilsondistributor.com Website: www.wds-usa.com

Be on the look out for:

Used Car Dealer Magazine’s new logo!

The Official Magazine of National Independent Automobile Dealers Association www.usedcardealermagazine.com

U S E D C A R D E A L E R M A G A Z I N E has been serving the used car industry since 1946. As we start the new year, we are proud to debut an exciting new design for the official magazine of NIADA. If you are not a member of NIADA and would like to receive the printed magazine, visit www.usedcardealermagazine.com and click on the Subscription tab.

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STREET SMART DECEMBER 2019 / JANUARY 2020 WWW.IOWAIADA.COM

MIDWEST AUTO AUCTION DIRECTORY

135 AUTO AUCTION

4716 S. Santa Fe Street Wichita, Kansas 67216 316-351-5001 Dealer Consignment Sale Thursdays at 9:00 a.m.

Free Breakfast, Free Car Wash

ADESA DES MOINES

1800 Gateway Drive Grimes, IA 50111 (515) 986-1200 Fax: (515) 986-1201 www.adesa.com Fleet/Lease Manager: Lesa DeRoy Consignment Sale every Tuesday at 9:30 a.m.

Fleet/Lease Sale Tuesday 10:30 a.m.

ADESA KANSAS CITY

15511 Adesa Drive Belton, Missouri 64012 (816) 525-1100 (800) 950-2350 Fax: (816) 525-4714 General Manager: Kevin Rhoads Tuesday 9:30 a.m.

ADESA MINNEAPOLIS

18270 Territorial Road Dayton, MN 55369 763-428-8777 763-428-8701 General Manager: Jay Fahrendorff Sale: Tuesday, 10 a.m. www.adesa.com

ADESA SIOUX FALLS

46893 271st Street P.O. Box 218 Tea, SD 57064 (605) 368-5364 Fax: (605) 368-2808 General Manager: Bob Holm Wednesday Sale 10:00 a.m.

IAAI SALVAGE SALE EVERY OTHER WEDNESDAY – 8:30 A.M.

ADESA ST. LOUIS 7858 Highway 61-67 Barnhart, Missouri 63012 636-475-9311 ADESA WISCONSIN

W 10415 State Road 33 Portage, WI 53901 608-742-8245 608-742-4415 (f) Tony Manwarren, general manager Sale: Thursday, 9:30 a.m. www.adesa.com

CARMAX AUCTION – DES MOINES

10315 Hickman Road Urbandale, Iowa To Register: 888-804-6604 In House Auction – Every other Monday 9:30 A.M.

DEALERS CHOICE AUTO AUCTION, INC.

503 South Wapello Road Mediapolis, Iowa 52637 319-394-3510 (888) 771-6810 319-394-3511 (fax) www.dcaa.com President: Monte Delzell Nationwide Transportation: EZ Auto Shippers Steve Miller: 866-310-5936 Sale Every Tuesday – 6:00 p.m.

DES MOINES AUTO AUCTION

1530 S.E. McKinley Road Des Moines, Iowa 50320 (515) 285-8911 Fax: (515)256-9161 FRIDAY AT 9:30 A.M. Todd Givant, General Manager

GREATER QUAD CITY AUTO AUCTION

4015 78th Avenue Milan, Il 61264 (309) 787-6300 Fax: (309) 787-4541 Tuesday 10 a.m. – Thursday 6 p.m.

General Manager: Larry Anderson

GREATER ROCKFORD AUTO AUCTION

5937 Sandy Hollow Road Rockford, Il 61109 (815) 874-7800 (800) 830-4722 Fax: (815) 874-1325 General Manager: Chad Anderson Wednesday 10 a.m.

KCI AUTO AUCTION

MANHEIM MINNEAPOLIS

8001 Jefferson Highway Maple Grove, MN 55369-4924 (763) 425-7653 (800) 622-7653 Fax: (763) 493-0310 www.manheim.com General Manager: Tom Saldutte Assistant General Manager: Felix Hernandez Commercial Accounts Manager: Jennifer Etnier Open Sale Sale every Wednesday; 9am Ford Credit, 9:30 TD Auto Finance, Select Lane and Fleet/Lease/Rental Groups, 9:45am Dealer Consignment.

Ford Factory Sale bi-weekly Wednesdays at 12 Noon; Fiat Chrysler Factory Sale bi-weekly Wednesdays at 12 Noon Total Resource Auction/Insurance Sale weekly, Tuesdays at 1:00pm.

We will have a general duty of integrity, honor and fair dealing toward the general public.

•

We will comply with all city, county, state and federal laws and shall endeavor to keep ourselves informed of those laws governing our business.

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We will not intentionally injure the business reputation of another member or competitor.

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We will employ truth and accuracy in advertising and selling.

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We will stand behind any guarantee given with the sale of a motor vehicle.

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We will not perform any act, which would bring disrepute to the motor vehicle industry.

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We will expose or halt, where found, any scheme designed to deceive or defraud the automobile buying public and aid in prosecuting those guilty of such acts.

•

We will constantly strive to improve business methods to the end that the public will be better served.

13813 St Charles Rock Road Bridgeton, MO 63044 (314) 739-1300 (800) 533-5414 Fax: (314) 298-3347 General Manager: Jason Blake

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We will encourage the American system of free enterprise.

MID-STATE AUTO AUCTION

The mission of the National Independent Automobile Dealers Association, the only national not-for-profit organization representing the independent motor vehicle industry, is to promote, educate and advance the independent motor vehicle dealer by:

MANHEIM NORTHSTAR MINNESOTA

4908 Valley Industrial Blvd. North Shakopee, MN 55379 (952) 445-5544 (888) 445-2277 Fax: (952) 445-6773 General Manager: Scott Maybee Open Sale: Thursday at 9:30 a.m.

11101 N. Congress Kansas City, MO 816-502-3318 816-801-8565 (f) Doug Doll Consignment Sale: Thursday, 9:30 a.m. MANHEIM OMAHA www.kciaa.com 9201 S. 144th Street Exit 440 off of I-80 LINCOLN AUTO AUCTION, LTD Omaha, NE 68138 11909 US HWY 6 (402) 896-8000 Waverly, Nebraska 68462 (800) 218-4192 402-475-5500 Fax: (402) 896-6758 www.lincolnautoauction.com General Manager: Steve Robinson Ryan Durst, Vice President Assist. Gen Manager: Korey Grell Weds. 10:00 a.m.

Thursday 9:30am.

MANHEIM ARENA ILLINOIS

200 West Old Chicago Drive Bolingbrook, Il 60440 (630) 759-3800 (630) 759-9668 General Manager: John Olejniczak Dealer Sales Manager: Louis Palermo Tuesday 9 a.m.

MANHEIM CHICAGO

20401 COX AVENUE MATTESON, ILLINOIS 60443 815-806-4222 Mike Cesta, General Manager

MANHEIM KANSAS CITY

3901 North Skiles Road Kansas City, MO 64161 (800) 247-7163 Fax: (816) 452-2393 General Manager: Victor Ferlaino Wednesday 9:30 a.m.

MANHEIM MILWAUKEE

561 South Highway 41 - 27th Street Caledonia, WI 53108 (262) 835-4436 (800) 662-2947 Fax: (262) 835-2684 General Manager: Dennis Worthy Dealer Sales Manager: Kimberly Schure Wednesay 9 a.m.

CODE OF ETHICS

•

MANHEIM ST. LOUIS

100 Bach Ave. New York Mills, MN 218-385-3777 218-385-3232 (f) Rob Thompson, president Sale: Friday, 10 a.m. www.msaanym.com

PLAZA AUTO AUCTION, INC.

320 Highway 30 West P.O. Box 147 Mt. Vernon, IA 52314 (319) 895-6232 Fax: (319) 895-6727 www.plazaaa.com Owner: Mark Greb Office Manager: Debbie Welsh Sales Manager: Becky McGinty Consignment Sale every Wednesday at 6:30pm. Fleet/Lease/Repo Sale Wednesday at 7pm.

TRI-STATE AUTO AUCTION

Jct. Highway 11 & 80 P.O. Box 735 Cuba City, WI 53807 (608) 744-2020 (608) 744-3418 (800) 356-0625 Fax: (608) 744-7425 Owners/Managers: Gerald and Helen Brogley Thursday 6:30 p.m.

MISSION STATEMENT

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Accumulating, processing and disseminating information relative to the motor vehicle industry;

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Developing, compiling and providing to the consumer, information which will promote a better understanding of the independent motor vehicle dealers’ place in the economy;

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Providing relevant information to regulatory and lawmaking bodies so that they may have a better understanding of the possible effects of proposed laws, rules and regulations on the consumer and the motor vehicle industry;

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Assisting in the promotion and organization of local, state or regional independent motor vehicle dealer associations; and

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Anticipating, recognizing and responding to current and future issues and needs of the independent motor vehicle industry and the consumer.

HISTORY OF NIADA

NIADA was founded in 1946 to lobby for the repeal of rationing of tires and automotive parts after World War II. The efforts put forward by the organization under the leadership of founding President Charlie Hillard resulted in the successful repealing of those wartime restrictions by the end of 1947.

WWW.IOWAIADA.COM DECEMBER 2019 / JANUARY 2020 STREET SMART

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MANAGEMENT MATTERS |

By Marcus Sheridan

WE CAN ALL LEARN FROM CHICK-FIL-A

Lessons from a Successful Business Model While listening to a radio talk show the host mentioned how impressed he was with his local Chick-fil-A. He was raving about the employees, food and cleanliness of the business. This made me curious so I did some research. I happened upon an article written by Marcus Sheridan, 8 Reasons Why Chick-fil-A has the Best Business Model in America, published September 15, 2010 (https://www.impactbnd.com/blog/reasonschick-fil-best-business-model). It is just as relevant today as when it was written.

I love it when I see great people and great businesses kicking butt at what they do. Such was the case recently when the family and I stopped into a local Chick-fil-A restaurant and I was treated to a free course entitled, “This is How to Run a Business that Kicks Butt and Takes Names,” or at least something like that.

As the kids were eating their food and I was busy being blown away by this perfect company and business model, I decided to ask my 9-year-old daughter a simple question: “Danielle, what do you notice about this restaurant that’s different than others?”

Danielle, who by now is used to weird business questions from her father, replied, “Well, first of all everyone that works here is happy.”

“Yes, they are, aren’t they? How’s that make you feel to see them smiling?”

“It makes me feel good inside.”

“I agree. What else do you notice?”

“There are pictures everywhere. And writings on the walls. And it’s really clean.”

“Good observations, dear. Danielle, you’re looking at the most well run business in America.”

For any of you who have been to Chickfil-A, you may already understand and appreciate what I’m talking about. If you haven’t gone to one and would like four years’ worth of business school wrapped up in 45 minutes, take a stroll on over to one of their restaurants for lunch and just sit, watch, and observe.

But to make what could be a long blog much shorter, allow me to quickly list the eight reasons Chick-fil-A has the best business model in America.

Happy Employees/Service It’s unbelievable what type of employees this company has. While we were eating our meal the other day, an employee with a big smile came over and asked us if we’d like refills on our drinks. For a fast food company, this is utterly unheard of in our society these days. It’s obvious Chick-fil-A doesn’t go cheap on their people nor their way of doing things.

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I’m sure they pay decent wages but they also create an atmosphere that attracts great people. What a wonderful model this is for any business.

They’re Clean!

Somewhere along the lines sanitation and cleanliness became a lost art in the fast food industry. Notwithstanding this trend, Chick-fil-A has bucked the system and their restaurants, as well as their bathrooms, are almost always immaculate. I don’t know about you, but I’ll pay more for clean any day of the week.

They Know What They’re Great At Most businesses try to be a jack of all trades, which ends up causing them to be master of none. That’s why Chick-fil-A will never have a burger on their menu. Why? Because they don’t care.

They know they’ll never be the best at beef but they sure have created a culture around the chicken sandwich. Wow, what a lesson this is for businesses out there with no identity, niche, or individual greatness.

They Aren’t Cheap Yep, having high prices is actually a good business model. I don’t know about you, but the idea of having to sell a lot to make a little stinks. Chick-fil-A has prices a good bit higher than most of their fast food competitors, yet they are always full of smiling customers just waiting to spend the extra green stamps.

These higher prices lead to better employees, service, food quality, customers, etc. I’m sure never once has their management even asked, “How can we be the cheapest?” But I’d bet my home they’ve asked, “How can we be the best, regardless of what it costs?”

Ambiance The next time you go to Chick-fil-A check out all the little things they do to make their restaurants warm and attractive. They have photos of employees, quotes on the walls, paintings from local children, etc.

Everywhere you look you’ll find something that makes you smile.

Community Involvement Wow, do they do this better than any fast food company. In fact, one isn’t even close.

They are constantly doing promos within the community for youth teams, causes, etc.

In fact, it’s like they’ve take social media to another level because for them it’s not just about using Facebook and the like, it’s about actually being involved and in the trenches.

Huge props to Chick-fil-A for this.

Awesome Website All of you that read this blog know how I feel about the importance of having a great website and web presence to be a successful

STREET SMART DECEMBER 2019 / JANUARY 2020 WWW.IOWAIADA.COM

business. If you want to see what a great business website looks like, head on over.

Whether it’s bios of the employees, social media links, customer stories, etc., this site is spot-on.

The Food is Actually Good Ah, yes. Lest we forget this other forgotten trait of fast food restaurants – great food.

Everybody likes Chick-fil-A. Nothing on their menu is poor quality. They’re proud of their food and they have every right to be.

So there you have it folks – the eight qualities of the best business model in America.

What’s great is that every business can copy the way Chick-fil-A has built their company. The qualities listed above are simply principles that can be applied to any business. So if you’re lacking inspiration for your business, it might be time for a chicken sandwich and waffle fries.

The reality is we are all in the business of finding and keeping our customers – it is our life’s blood. After you have thought about these eight reasons Chick-fil-A has the best business model in America, you can adapt these to serve your dealerships. Sometimes we have to remove ourselves to evaluate opportunities to improve.

WWW.IOWAIADA.COM DECEMBER 2019 / JANUARY 2020 STREET SMART

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MISTAKES HAPPEN With Stockwave, they don’t have to.

Wholesale sourcing mistakes happen, whether it’s not having time to prepare, overbidding as the clock runs out or bringing home the wrong car.

Stockwave from vAuto helps you avoid these costly mistakes.

Searching auctions across the country, Stockwave finds exactly which wholesale vehicles your dealership needs, and shows you what to pay for them to protect your margins. With Stockwave, you get the higher grossing vehicles in less time.

To learn how, visit vAuto.com/mistakes or call 888.365.1032.

See Stockwave in action at NADA. Visit us at booth #2316C.