the Front Row

The official publication of the Washington State Independent Auto Dealers Association

May|June 2019

Compliance...

Is Your Dealership At Risk?

The Lean Dealership Sales Training for Struggling Teams PLUS...

• Simple Summer Car Care Tips

Outstanding Auctions. Signature Events.

Auburn, WA

SIXTH ANNIVERSARY SALE Join the Celebration!

FRIDAY • JUNE 7 • 9:00 AM • 900 VEHICLES

F RI DAY • M AY 3 9 : 00 A M • 9 0 0 V E H I C L ES

Don’t miss General Manager Dave Blake sharing his Boston roots, Seattle-style!

Spokane, WA

June 19th & 20th - 3200 Vehicles May 15th & 16th - 3200 Vehicles Check Out Our Yearly Collector Car Auction & Party with the Region’s Best Corporate and Dealer Consignment!

JOIN US AT DAA NORTHWEST EVERY THURSDAY AT 9:00 AM, AND IN SEATTLE EVERY FRIDAY AT 9:00 AM

Enjoy barbecued salmon in the lanes and compete in our postsale Salmon Toss to win a Destination B.A.S.S. fishing trip!

Pack Your Clubs for Our Annual Chuck Whitman Memorial Golf Tournament on Wednesday, June 26!

DAA NORTHWEST | Spokane, WA KCI KANSAS CITY | Kansas City, MO DAA SEATTLE | Auburn, WA mcconkeyauctions.com

SPOKANE, WA daanw.com

AUBURN, WA daaseattle.com

All information subject to change without notice

May|June 2019

The official magazine of the

WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION 707 Auburn Way South Auburn, WA 98002 T: 253-735-0267 | F: 253-804-0844 staff@wsiada.com WSIADA.COM AJ Hamedian, Board President Excellent Choice Auto Sales, LLC aHamedian@yahoo.com

Randy Fletcher, President Emeritus

In N Out Auto Sales | inandoutwa@gmail.com

Emil Scarsella, Board Treasurer

Town & Country Auto Sales | E.Scarsella@hotmail.com

J.T. Curry, Board President Emeritus

Motors Northwest | JT_Curry@motorsnorthwest.com

Contents

Ken Williamson, Board President Emeritus John’s Auto Mart, LLC | JohnsAutoMart@msn.com

Andrew Drager, Chapter President – North Sound Drager’s International, Inc. | Andrew_Drager@mac.com

Andrew Harding, Chapter President – Tri Cities Harding Motor Co. | HardingMotorCompany@gmail.com

John (Buck) Tinsley - Chapter President – Vancouver Buck’s Family Auto Brokers | TakeOnPayment@gmail.com

Vacancy - Board Secretary Vacancy - Board Vice President Vacancy - Chapter President – North Cascade Vacancy - Chapter President – South Sound Vacancy - Chapter President – Tri-Cities Vacancy - Chapter President – Yakima WSIADA STAFF

Todd C. Elliott, Executive Director Colette Eilers, Receivables/Payables Rick Olson, Education Manager Jason Ludwig, Marketing Coordinator Mila Froman, Membership Manager Michael McGaughy, Spokane Auctions

PUBLISHER Sygnifi Networks SmartDealer@sygnifi.com ©Copyright 2018 WSIADA MEMBER

2 | Membership Benefits 4 | Events Calendar | Auction Savings App! 5 | Executive Director’s Message 7 | Compliance: Is Your Dealership at Risk?

8 | E-Marketing: Text Messaging Best Practices 10 | Simple Summer Car Care Tips 13 | Training Tips for a Struggling Sales Team 14 | Auction Listings 15 | The Lean Dealership 19 | Fifty Dangers and Opportunities 21 | Continuing Ed: Read & Respond 23 | WSIADA Membership Form 24 | Service Provider Directory the Front Row | wsiada.com | May/June 2019 |

1

Washington State Independent Auto Dealers Association

Dealer Membership Benefits Protect the interests of your dealership AND support the auto industry in Washington State!

ADVOCACY ❏

Dealer Advocate Line*

❏

Legal Support through WSIADA partner law firm

❏

Industry protection by WSIADA’s lobbyist

❏

Exclusive Legislative updates

EDUCATION ❏

Continuing Education & Sales Training

❏

Compliance Training

❏

Dealer Productivity Training

❏

Discounted attendance at 2018 WSIADA Education Fair East or West

SPECIAL FEATURES ❏

NIADA membership included

❏

Subscription to the Front Row magazine included

❏

Membership may be billed montlhy or annually**

❏

10% off Products available through WSIADA stores and wsiada.com

❏

One-stop shopping for everything you need to manage and promote your dealership, including marketing materials, signage, forms, stationery and much more.

❏

Custom Orders on marketing products you need at prices you can afford!

❏

$5000 in Auction Discounts at: DAA (NW and Seattle), Manheim (Seattle and Portland), Copart, Adesa (Seattle and Portland), IAA, CTM Unlimited, Copart, Kaman, and Ehli***

❏

Leadership opportunities

ADDITONAL BENEFITS ❏

Mac Ruddell Scholarship (Exclusive to dealer families!)

*Recent dealer advice resulted in $5000 saves on one dealer transaction. **Education related products not eligible for billing option. **Auction cards have no actual cash value. Lost cards will not be replaced. Cards may be picked up during normal business hours from WSIADA main office, ADESA Seattle, DAA Seattle, DAA Northwest or Manheim Seattle.

20180813

Email membership@wsiada.com | Fax 253.804.0844 | Phone 253.735.0267 2 | the Front Row | wsiada.com | March/April 2019

Dealer Management System

DEALER-PARTNERS WANTED Sign-Up Today Start Growing Your Business

Instant Approvals 24/7 Availability Easy To Use

Š 2018 Lobel Financial. All rights reserved.

Access Industry Leading Service Providers All On One Site!

253-839-2600 | www.lobelfinancial.com | Training ~ Support: 800-871-8051 the Front Row | wsiada.com | May/June 2019 |

3

Events Calendar Spokane

Title Workshops (9am to 1pm) WED MAY 15 . . . . . . . . . . . . . . . . . . . . Portland TUE MAY 21. . . . . . . . . . . . . . . . . . . . . . . Auburn THUR JUNE 06. . . . . . . . . . . . . . . . . . . . . Auburn THUR AUGUST 01 . . . . . . . . . . . . . . . . . . Auburn

Chapter Meetings Vancouver

TUE OCT 10 | 12:30 - 2:30 pm Manheim Portland 3000 N Hayden Island Drive Portland, OR 97217

4

Easy steps to $1000s in auction savings!

• STEP 1 Download the WSIADA App • STEP 2 Respond to welcome email from SmartDealer

MON OCT 14 | 7 - 9pm Hilton Garden Inn Spokane Airport 9015 US-2, Spokane 99224

Tri-Cities

MON OCT 21 | 7 - 9 pm Clover Island Inn 435 N Clover Island Drive, Kennewick 99336

Yakima

TUE OCT 22 | 7 - 9 am Hilton Garden Inn 401 Yakima Avenue, Yakima 98901

North Sound

MON OCT 28 | 7 - 9 pm Dragers International Classics 18805 Aurora Ave. N., Seattle 98133

North Cascade

TUE OCT 29 | 7 - 9pm Hampton Suites, Burlington 98233

South Sound

MON NOV 04 | 8:00 - 10am Hilton Garden Inn 2101 Henderson Park Ln SE, Olympia 98501

Education Fairs East | TUE JUL 23, 2019

Doubtree by Hilton 322 N Spokane Falls Ct., Spokane

West | THU AUG 15, 2019 LeMay—America’s Car Museum 2702 East D Street, Tacoma

Download the WSIADA App Today!

Online shopping, news, alerts and more!

Plus: our brand new Auction Savings Program...

• Access to auction inventories from across the country!

• Special savings on Buy Fees at auction!

• Easy to use!

• STEP 3 Create User Name and Password Free from these App Stores:

• STEP 4 Pick your discounts and save $$$ at checkout 4 | the Front Row | wsiada.com | May/June 2019

For More Information Contact: WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION 707 Auburn Way South | Auburn, WA 98002 Phone 253-735-0267 | Fax 253-804-0844 staff@wsiada.com | WSIADA.COM

EXECUTIVE DIRECTOR’S MESSAGE

Exciting news in this issue!

T

he summer season of vacations, graduations, weddings, rock concerts and conventions is just around the corner.

On the latter, four events are coming up in June, July and August that deserve your attention. Here’s the short list: June 18 - 21

NIADA Convention, Las Vegas, NV

July 23

WSIADA Education Fair East, Spokane WA

July 24 - 25

DAA Rock and Roll Sale, Spokane WA

August 15

Education Fair West, Tacoma WA

Of course, we’ll have the Department of Revenue, Attorney General and Department of Licensing joining us, including the new DOL Director Teresa Berntsen. But we also have some exciting additions to the Education Fairs this year.

Zach Klempf, CEO of Selly Automotive, will join us at both Education Fairs. Zach is a millennial who will teach us all some new skills in selling to millennials. He’s a frequent presenter at NIADA and other state Associations; in fact, Zach will join us in Spokane on the heels of the Texas convention in Houston.

Some exciting new online capabilities roll out in the coming months including our first survey.

Hopefully you have been receiving the Quick Covers. They’re designed to keep you current with little bites of information. There will be follow and links to other sites and information as appropriate. For Associate Members, we have new online advertising opportunities on WSIADA.com and in Quick Cover. Contact Jason@wsiada.com for details.

We’re kicking off a new column called

The venue is new in Spokane. We will be downtown at the Doubletree, which more readily accommodates our 75 dealers and gaggle of Associate Members participating in the vendor fair. We are bringing back the old Scavenger Hunt format with a drawing for some nice prizes after the event.

“Dealer News from Around the State”and need

We’re back to LeMay, America’s Auto Museum for the August event and will kick it off with the WSIADA Annual Meeting.

safe and happy summer. Happy selling!

For the Latest, Check Out WSIADA.com/EducationFairs

YOUR input to bring life to this idea. Look for a story from a Vancouver dealer who’s in the “Best of” running. And please send your stories to Staff@wsiada.com.

We at WSIADA wish you and your families a

Todd C. Elliott, WSIADA the Front Row | wsiada.com | May/June 2019 |

5

Miranda knows...

We get it.

If you want to buy a car ask an automotive professional.

If you want to properly protect your dealership ask an insurance professional who understands your business.

We are car people.

We insure car people.

Its all we do.

Insurance & Bonds for: • Auto Dealers • Auto Service • Body Shops • Daily Auto Rental

To get started visit www.ShepQuote.com

It’s so easy • Ask Miranda • She knows

#askMiranda

Shepard & Shepard Insurance 855-396-0488 MEMBER - NIADA, OIADA, WSIADA, ISIADA, ASA Home office: Tri-Cities, WA

6 | the Front Row | wsiada.com | May/June 2019

COMPLIANCE

Is Your Dealership at Risk?

D

ealership compliance has spread like wildfire

since the passing of Dodd-Frank and the formation of the Consumer Finance Protection Bureau. There are numerous strict regulations, from F&I to marketing to inventory, that it’s your job to stay on top of.

How is it possible to keep up? As an owner, protecting yourself from these dealership compliance issues is a big deal. The penalties are potentially enormous and career-ending if you don’t watch your step.

At the same time, if you’re putting in the right amount of effort to stay on top of these issues, you’ll be fine. It’s all a matter of awareness, training, and prevention. Because there are so many regulations to adhere to, it’s wise to strategize so that no one in your dealership ends up breaking the rules. Blaming non-compliance as “an accident” won’t save you in a courtroom.

Strategies for dealership compliance: the best ways to identify risk and squash it

1

2

Review your Identity Theft Prevention Plan (ITPP) and train your staff. Identity theft prevention is paramount for car dealerships. The Red Flags Rule (RFR) mandates that your staff must be proficiently trained in examining the actual identity of your customers.

The RFR is of particular importance because there are so many ways to fall into non-compliance, even when you think you’re doing it right.

Besides training your staff to make more sales, you need to make sure they know who they’re selling to.

Don’t take these regulations for granted—identity theft is widespread in the U.S.

Most of your salespeople know about the various dealership compliance regulations, but they may no‚‚‚t know them enough to understand all the angles and consequences. Some people will cut corners on these rules. They’ll get comfortable, go about every deal in a casual way, and then it’s on your head when they screw up.

Don’t let that happen. Create a standard process for your sales team. Hit every point necessary, and make it clear that these steps are mandatory.

❏ ❏ Review your ITPP and update it with the latest practices set down by the RFR.

❏❏ Adverse action notices

❏❏ Train your staff on how to identify red flags.

❏❏ OFAC checks on customers

❏❏ Make a protocol of what to do if the salesperson is concerned about the identity of his customer. ❏❏ Always keep a paper trail of all documentation and scheduled trainings.

3

Hire a legal consultant to pinpoint issues. If your dealership compliance needs work, consider hiring a consultant to audit your procedures and set up a compliance checklist. This would Here’s some advice: take this position be a perfect learning opportunity if you’re newly appointing a and its responsibilities seriously. compliance officer.

Your officer is the spearhead of your It may be an added expense, but compliance strategy. Send him long-term it will cost much less than to seminars, trainings, certification being slapped with a fine for being courses—anything that will help non-compliant. Think about it as him protect your dealership from insurance for your dealership’s future. exposure. Here are a few ideas that You may choose to hire a legal conwill benefit your dealership. ❏❏ Invest in training from the Association sultant to review your entire dealerof Finance and Insurance Profession- ship once and leave the responsibility on your compliance officer moving als (AFIP). forward. Another option is to create ❏❏ Have him teach best practices room in your budget to have a legal to the F&I and sales staff. consultant do a large first-time audit, ❏❏ Work with him to create a standard and then return annually to review procedure that follows all the rules. the compliance officer’s overall work.

Assign a compliance officer to review and update your dealership’s policies. It’s a law to designate a compliance officer in every dealership.

4

Create a standard process for all your salespeople to streamline compliance.

❏❏ Credit score disclosure notices ❏❏ Gaining permissible purpose for credit reports ❏❏ Following all steps under the Red Flags Rule

Those are only a few of the regulations your dealership must follow.

The best way to stay fully compliant is to have your compliance officer provide quarterly trainings and audit sales files regularly.

Awareness and prevention are your greatest assets in dealership compliance Dealership ComplianceWe’ve only skimmed the surface of the compliance issues facing car dealers today. The first thing you have to do is figure out where your weak points are—dig in and get to the problem before someone else does. Add mandatory compliance training into your routine sales training throughout the year.

SOURCE: https://www.autoraptor.com/ dealership-compliance-how-to-know-if-yourdealership-is-at-risk/ the Front Row | wsiada.com | May/June 2019 |

7

E-MARKETING

Are Your Dealership’s Text Messages Up to TCPA Code?

By Zach Klempf

C

Zach is CEO of Selly Automotive and will joins us at both Education Fairs. Look for his next article in the July/August issue of the Front Row..

ould your auto dealership bounce back from a $2.5 million mistake? Sounds daunting, doesn’t it? Well, the executives at Lithia Motors faced that very real question just a few years ago.

The source of their troubles was a text messaging law called TCPA. In 2011 Lithia Motors of Medford Oregon sent a short text message to 57,800 consumers. A week later, they sent a second message to 48,000 of those people. What followed was a class action lawsuit that forced Lithia to settle for $2.5 million.

Luckily for Lithia, they are one of the country’s largest auto groups. But could your dealership take a blow like that?

For most independent dealers, the answer is a resounding no.

How can dealers avoid this fate? The answer is simple, although not always easy. Complying with TCPA text messaging rules can be challenging if you don’t have the right tools in place.

In this article, we will review TCPA text messaging law and show you how independent dealers can stay compliant.

TCPA Text Messaging Laws and Lawsuits TCPA stands for the Telephone Consumer Protection Act, a 1991 law that prohibits companies from sending any form of unsolicited communication to customers via telephone technology. TCPA applies to pre-recorded messages, robocalls, faxes, and yes, text messages.

For a dealership to call or text a customer, they must have prior written consent. But that’s not all. Business communication must also comply with several other conditions as outlined by TCPA.

8 | the Front Row | wsiada.com | May/June 2019

Lithia Motors is not the only dealership that has paid for violating TCPA. In 2016 Interstate National Dealer Services agreed to a $4.2 million class action settlement after sending out robocalls to customers with unsolicited offers.

In 2017 another dealership faced legal action for texting customers about a vehicle recall. This message seems innocent enough, but because the recall wasn’t covered under the car’s warranty, the plaintiff claimed it was a scam to get her to buy more services. The lawsuit was unique because it expanded TCPA law to “service-related” communication instead of just marketing.

The latter case illustrates just how fine a line dealers must walk with texting customers. If only one of your salespeople makes a mistake, the penalty could be steep. Fines can cost up to $500 per text message in violation of TCPA regulations.

How to Keep Text Messages TCPA-Compliant One of the biggest risks for dealerships is salespeople messaging with customers from their personal phones. Those messages are not TCPA-compliant, which means your dealership is at risk of facing legal action as we saw above.

Maintaining TCPA-compliant text messages takes a lot of work. Luckily, there is a shortcut for dealers to maintain compliance without all the hassle.

But before we get to the shortcut, here are the guidelines dealers should follow to adhere to TCPA:

1 Acquire written consent First and foremost, GMs should ensure that ALL communication with a customer has been agreed

to beforehand. Consent must be in written form and consist of a double opt-in. In other words, when a customer agrees to share their phone number with you, dealerships need to send a follow-up message that asks them to confirm. That message could look something like this: “ABC Motors News and Deals Updates. Messages sent weekly.

Reply HELP for help. Reply YES to confirm your sign up.”

A customer must reply with a Y or YES to start receiving messages. This is to ensure customers are not signed up without their permission.

2

Be specific and share important information

Customer consent is not universal.

Dealerships need what’s called “contextual consent,” which means customers agree to specific types of communication, like marketing or service-related messages only.

Dealerships need to be specific with when requesting permission.

Instead of asking customers to simply “subscribe,” dealers should ask them to, “subscribe to weekly promotional deals and updates.”

Dealers also need to make customers aware of any fees they might incur. With some cell phone data plans, customers must pay for each text message received, whether or not they consented to receive it. Dealers need to include, “message and data rates may apply” in their opt-in messages.

A dealership’s privacy policies should be easily accessible on their websites. Add a link to your company’s privacy policy in the footer of your website. Make sure an attorney reviews the policy.

3 Stick to Your Word Even after obtaining consent from a customer, dealerships can still violate TCPA by not sticking to their word.

Remember, customers must consent to specific types of communication.

If they sign up to receive vehicle recall messages, you cannot send them marketing messages without consent for those, too.

Consent is also broken by sending more messages than promised. If you say messages will be weekly, but you send them out daily, those extra messages are considered unsolicited and in violation of TCPA. The rule regarding contextual consent is simple: Do what you say you were going to do, and nothing more.

With each new case, TCPA’s interpretation changes. It’s important to stay up to date with the latest reading of the law to avoid unknown pitfalls.

Take the TCPA Shortcut: Use a CRM System

If maintaining TCPA text messaging compliance sounds like a lot of work, you would be right. From managing opt-ins to auditing messages to Allow customers to opt-out keeping up with new regulations, at any time TCPA compliance is a full-time job in Just as important as opting-in is giving itself. customers the opportunity to optLuckily for busy independent out at any time. Every message sent dealers, there’s to a shortcut to by your dealership should include, TCPA compliance that will save “Reply STOP to cancel” at the end. you significant time, money, and Dealers need to maintain a Do headache.

Not Call list of all customers who The secret is using an automotive have opted out. It is critical this list CRM with built-in, TCPA-compliant is maintained and followed. Many text messaging. CRM systems TCPA class action lawsuits are filed automate the process so you and because dealers ignored customers’ your salespeople can focus on the requests to be removed from call lists. customers.

Stay up to date on When you add a phone number changing regulations to your CRM, the customer Since becoming law in 1991, TCPA automatically receives an opt-in has evolved several times. The most message. Each message after that recent example is the “services-related includes opt-out instructions, and messaging” lawsuit the we mentioned the CRM keeps your Do Not Call list earlier in the article. up to date.

4

5

Additionally, all text messages are stored inside the system, not in a salesperson’s private phone. If a salesperson ever leaves the dealership, they won’t take any sensitive customer information with them.

CRMs also make sure your salespeople stay TCPA-compliant with phone calls. No matter the method of communication, using a CRM ensures your dealership stays on the right side of the law and away from lawsuits.

Using a CRM to Stay TCPA-Compliant It’s smart to use text messaging to communicate with customers.

However, dealerships absolutely need to protect themselves from expensive TCPA violations.

The steps to stay TCPA-compliant are clear, but implementing them on a regular basis is difficult and timeconsuming. The better way is to rely on a CRM system to take care of it for you.

With the right tools, TCPA-compliant text messaging is easier than you think.

the Front Row | wsiada.com | May/June 2019 |

9

10

Simple Summer Car Care Tips

5. Air-Conditioning System

C

ar care doesn’t take a vacation between Memorial Day and Labor Day. The warmer months present some challenges to personal transportation and maintenance, but this list will help us all have a summer we can enjoy. Here are our top 10 tips to keeping your car--and its passengers--in good shape this summer.

1. Coolant System Keeping cool is paramount, not just for ourselves but also for our cars. In addition to checking the level of coolant in your car, go the extra mile and inspect the state of the hoses and the coolant reservoir. Keep an eye out for leaks, especially at joints and connection points, such as where a hose connects to the engine block. Also, squeeze the hoses (when the engine is cool) every once in a while to make sure they feel firm and not excessively squishy or soft.

vision while driving. Replacing them doesn’t cost much, but it can be a fiddly operation. If you’re in the habit of taking your car in for oil changes, ask them about the wipers, too.

Sometimes a dealership will sell you the wipers and install them for free.

4. Air Filter The winter’s decomposing leaves may be clogging up drainage points, windshield-washer nozzles or

3. Wipers Yes, it’s summer, but it’s probably going to rain at some point. Worn wipers create nasty streaks across the windshield and can affect your

Air-conditioning is a summer essential. If the system hasn’t been working properly but wasn’t really a pressing issue over the winter, now’s the time to get serious. If it’s an older system, then leaking Freon into the atmosphere is not good. There are plenty of leak-sealing products and refrigerant rechargers available from hobbyist stores and even places like Walmart. Remember, if there’s not enough refrigerant in the system, you have a leak. Have a qualified mechanic fix the leak before paying to have the air-conditioning system recharged.

6. Essential Fluids Check oil, brake, power-steering and windshield-washer fluids regularly.

These liquids never stop being used and consumed. Speaking of brake fluid, how do the brakes on your car feel in general? Are they lacking in bite? Feeling a bit spongy? If so, new pads and a system bleed might be required. This is the kind of maintenance you should have your mechanic or dealership take care of.

7. Tires

2. Engine Belts There is usually a serpentine belt that runs between the alternator, the fan and several other components. It can deteriorate, become loose, start to squeal, and sometimes just break for no apparent reason. It needs to be in good condition and at the right amount of tension. If you see cracks in the belt or small pieces missing, it’s time to replace the belt.

too. Sometimes these cabin filters are easy to change yourself. Like everything else mentioned here: When in doubt, consult a qualified technician.

your car’s air filter. Now might be a good time to buy a new one or take the current one out and give it a cleaning. Many modern cars also have pollen filters or cabin filtration systems, so take a look at those,

10 | the Front Row | wsiada.com | May/June 2019

Tires really need to be checked regularly all year round. Pressures must be correct (consult the manual because sometimes that information is on the inside of the fuel door orthe door jamb for the driver’s door), treads should be free of stones, stray nails and the like, and all four should be in good condition. Good condition means no cracks, no uneven wear (this might be caused by a suspension problem) and plenty of tread depth. Since summer is a time for road trips, it wouldn’t be a bad idea to have a can of Fix-A-Flat that could at least get you to a shady spot where you could change the wheel more comfortably. The spare obviously needs to be usable, too.

8. Dashboard Sunshade For those times when you’re not driving, but the car is still out in the sun, a cover that goes in the windshield will protect the dashboard against ultraviolet rays and help the cabin stay a little cooler. Some even have solar panels to keep the battery charged.

Consider shades for the rear side windows, too, as they’ll provide some protection for the kids. This also helps prevent areas such as the rear seats and dashboard from fading over time.

9. Clean the Car Those long, balmy evenings when the sun is a huge, orange orb hanging low in a pinky-blue sky sound blissful. But they can also be a hazard, especially when your car’s windshield is dirty. Even from the inside, that haze will diffuse the light and make things hard to see.

That grime has a tendency to build up over a long period, so we don’t really notice it. Things look much sharper after your car has had a good wash, though. Keeping the exterior clean also protects the paintwork from the sun’s rays, as well as any damage caused by birds and insects. Finish off the cleaning with a good-quality wax. Car care makes financial sense in the long run.

10. Driver and Passengers It’s hot out there. Make sure everyone’s hydrated. It’s better to make a few more bathroom breaks and stretch your legs than to end up cranky and fatigued. Plan road trips as if you were a general marching against an opposing army. Make a list of everything you’re going to need. For example: sunglasses, hats, travel mugs, games for the kids, snacks, chargers for the phones and tablets, route planner, weather forecasts, emergency triangle, flashlight and a small tool kit. If a scheduled service is coming up, think about getting it done before a long drive. It’s also wise to make sure your insurance and driving license are up to date. Have a great summer, enjoy the roads, and take care of yourself and your car.

Copyright ©2017 Autotrader Inc. Used by permission.

Get your plate frames and inserts from WSIADA!

YOUR logo, YOUR style Competitive Pricing Support WSIADA

Get started today in the online store at www.wsiada.com or call (253) 735-0267.

CONTINUED NEXT PAGE

the Front Row | wsiada.com | May/June 2019 |

11

PROTECTION

against future repair costs with:

PREMIUM ELITE PLAN

Fuel Pump $

1,035

Engine

Drive Axle $

1,325

POWERTRAIN

Component Coverage

STANDARD

Component Coverage

STANDARD ELITE: This midlevel limited liability coverage includes Powertrain coverage PLUS additional coverages.

POWERTRAIN ELITE: This powertrain limited liability coverage offers protection for many parts of the engine, transmission, and drive axle.

Water Pump $

895

(1)

Transmission $

4,265

The above is for illustration purposes only.

(2)

Parts pricing listed is based on average of actual repairs at a retail rate for Parts & Labor. Actual repair costs may vary by repair facility, vehicle and location.

Don’t wait until you’re out of warranty! Extend your coverage with a Vehicle Service Agreement and stay protected from expensive repairs!

PREMIUM

ELITE PLANS

PREMIUM ELITE: This top-level limited liability coverage includes Standard and Powertrain coverage PLUS additional coverages.

2,250

a

AC Compressor $

5,600

$

P

ELITE

(2)

The Premium ELITE Plan is our top level of protection. It covers the things that keep your vehicle running and your passengers comfortable.

PREMIUM ELITE PLAN covers everything that STANDARD & POWERTRAIN Plans cover, plus much more.(1)

N

With time and mileage, repair or replacement of these standard parts is inevitable. Once your manufacturer’s warranty expires, here’s what you can expect to pay on average:

OUR PREMIUM ELITE PLAN PROVIDES SOLID PROTECTION & GREAT BENEFITS.

Component Coverage

For illustration purposes only.

(1)

Call a representative to protect your vehicle with National Auto Care at:

800-548-1875

SERVICE AGREEMENT OPTIONS FOR PRE-OWNED VEHICLES

PLEASE NOTE: ADMINISTRATOR MAY REPLACE COVERED PARTS WITH ORIGINAL EQUIPMENT MANUFACTURER PARTS, NON ORIGINAL EQUIPMENT MANUFACTURER PARTS, REMANUFACTURED PARTS, OR USED PARTS. This material is for marketing purposes only.

Please refer to your Vehicle Service Agreement for a more comprehensive list of what’s covered with your plan.

In Florida, administered by NATIONAL AUTO CARE OF THE SOUTH FL License # 19255

Administered by NATIONAL AUTO CARE CORP. ®

440 Polaris Parkway - Suite 250 Westerville, Ohio 43082 1-800-548-1875 www.NationalAutoCare.com

NAC1115VSCelite Rev0115 ©2015 National Auto Care

PROTECTION FOR YOUR INVESTMENT

SERVICE AGREEMENT FOR HIGHER MILEAGE ELITE: VEHICLE OR OLDER CARS AND PASSENGER TRUCKS PROTECTION FROM THE UNEXPECTED

DO YOU KNOW the average cost to

Your vehicle is not only an investment; it’s your transportation lifeline.

With National Auto Care’s® protection plans, you have the peace of mind knowing your investment is protected.

repair/replace these standard vehicle parts?

Steering Rack

$1,400

Water Pump

Engine

$895

$5,660

GET THE MOST OUT OF YOUR COVERAGE

Drive Axle

$2,250

Fuel Pump

$1,035

Transmission

$4,265

AC Compressor

$1,325

Alternator

$1,126

Additional Coverage for many Mechanical and Electrical Components!

Electrical Brakes Basic Electrical Components Air Conditioning Basic Brake Components Steering Front & Rear Suspension Fuel System Cooling System Engine

Parts pricing listed in illustration is based on average of actual repairs at a retail rate for Parts & Labor.

Actual repair costs may vary by repair facility, vehicle and location.

Get our TOP-LEVEL peace-of-mind protection for your vehicle and your wallet with a PREMIUM ELITE VEHICLE SERVICE AGREEMENT!

12 | the Front Row | wsiada.com | May/June 2019

Turbo/Supercharger Transmission & Transfer Unit Drive Axle Assembly

POWERTRAIN

UPGRADE TO OUR PREMIUM COVERAGE FOR TOP-LEVEL PROTECTION!

STANDARD

With THREE levels of coverage, National Auto Care’s protection offers affordable options to ensure your vehicle is protected against costly mechanical and electrical repairs.

PREMIUM

ONS S

Now is the time for

• • • • • • • • • • • • •

• • • • • • • • • • •

• • • •

This material is for marketing purposes only.

6

Training Tips for a Struggling Sales Team

SALES

Motivating your team with these car sales training tips can turn your dealership around

W

alking into a sales manager position at a preowned car dealership can be tricky, especially when the sales team has been struggling to close deals.

Every salesperson has a distinct way of doing things: how they engage with customers, what points of the sales process they focus on, who they prefer to deal with, etc. When you’re coming in as a new hire in a leadership role, it’s best to identify the issues and focus your team on tackling them together.

There are a few car sales training tips that will help a struggling team gain back their confidence. As the sales manager, it’s your job to implement

these techniques within your sales force. You handle the numbers from this point on, so it’s in your best interest to put forth an effort to modernize your sales team while reinforcing car sales principles.

Keeping reading to find out how to turn around your team today.

1

Focus on qualifying your leads for a particular automobile

A good salesperson is an excellent listener and a partial speaker. Re-focus your sales team on understanding the customer’s needs, desires, and wants.

That means being able to create an effective dialogue without necessarily In this post, we’ve included seven trying to sell the prospect on any one car sales training tips to help you car. There is also a miniature scale turn around your sales team. We’ve sales process going on every time broken these tips into two separate you shake hands with a customer the categories: 1.) getting back to the first time. The first step is to establish basics and 2.) making of a modern trust by listening to what they say and salesperson. The basics focus more asking pointed questions about their on building foundational skills in concerns. Only then will you know selling cars and the modern section is what car to choose for sale. training your sales team in new areas.

It’s tough job, but if you can open up your team and work together towards one goal, your sales goals will keep rising with time.

CONTINUED NEXT PAGE

Turbocharge Your Dealership! with SmartDealer™ Discounted Services for Members of the Washington State Independent Auto Dealers Association.

Full-Service Websites

@ WSIADA Member Prices

DRIVE MORE TRAFFIC TO YOUR LOT WITH STRONGER ONLINE PERFORMANCE THAN YOUR COMPETITION!

New website design, development, data migration, application integration, testing and initial training.

For more information email SmartDealer@sygnifi.com or call (734) 904-0295. the Front Row | wsiada.com | May/June 2019 |

13

CONTINUED FROM PAGE 13

AUCTION LISTINGS For a current calendar view, visit WSIADA.com and select “Calendar” from the top navigation menu.

Adesa | adesa.com/seattle

Tuesday: Consignment 9:30AM Alternate Tuesday: Specialty 8:30AM Thursday Night: InOp Sale 4:45PM

Adesa | Portland adesa.com/portland Thursday: Consult website

Copart | copart.com

Times vary: Consult website

CTM Unlimited

See website for auction dates and times: www. ctmunlimitedauction.com

DAA | Seattle | daanw.com

Friday: Dealer and Fleet/Lease 9:00AM Alternate Friday: Heavy Metal*

9:00AM (Lane 8) Monthly GSA Public Auctions:

1:00pm as scheduled” *Mechanically-challenged/cosmetically damaged/nonrunning inventory

DAA | Northwest | daanw.com

Weekly auctions: Thursdays at 9:00am; Monthly promotional event auctions:

Wednesday at 2pm &

Thursday at 9:00am Monthly MotorSports auctions:

Thursdays at 11:00am (Lane 8) Monthly RV auctions:

11:00am (Lane 8);

Heavy Metal auctions:

8:30am as scheduled (Lane 8); NOTE: MotorSports, RV and Heavy Metal auction dates can be found at daanwmotorsports.com

Ehli Auto Auctions | ehliauctions.com Last weekend of every month.

IAA - Insurance Auto Auctions iaai.com See website for dates and times

Kaman | kamanauctions.com Thursday: Noon

Manheim | Seattle manheim.com/locations/SSAA/events

Monday: OVE Event Sales Tuesday: Alternate weeks Ford Factory

(Closed sale) - 10:00am;

Crossborder Mobile Sale - 1:00pm Wednesday: General Sale Weekly 9:00am All sale dates and times are subject to change.

Please verify with the Auction or manheim.com.

Manheim | Portland manheim.com/locations/PAA/events Tuesday: Open Sale: 9:00AM

2

Master the presentation of the vehicle

There is nothing fancy about used car sales; you have to make it fancy. Presenting the vehicle to the customer is one of the most important aspects of the sales process. Teach your sales team that guiding the customer through the vehicle is establishing an emotional connection. Reference back to your earlier conversations to highlight the reasons why this particular car is perfect for them. Know how to use pain points to engage your prospect.

Also, know the safety features by heart. Your sales team should show professionalism at every stage in the sales process. Telling a customer they don’t know all the details about the car is like a waiter forgetting what the special of the night is. It’s embarrassing and undermines credibility.

3

Make professional appearance a standard at your dealership

These car sales training tips go for both the appearance of your sales team and the vehicles on the lot. Establishing a professional atmosphere at the dealership with increase the confidence of your sales team and increase the overall experience of your clientele. Train your team members to establish a method of communication with the service department, so every car shown looks brand new. There should be a fresh coat of wax, clean windows, jet black tires and a new car smell for every car.

Instill in your sales team that buying a car is an emotional experience.

Customers want to feel increase from their purchase, and they want to deal with a professional salesperson.

4

Invest in a quality CRM system and train your team to use it effectively

Lead management and sales tracking is a necessary tool for today’s digitally-focused consumers.

Most of your leads will come through online, whether directly to your dealership website or by 3rd party sites like AutoTrader. Your sales team will benefit from know who these

14 | the Front Row | wsiada.com | May/June 2019

online viewers are, what they’re looking for, and how far along they are in the buying process.

A quality CRM can organize all that information for you, as well as tracking sales and useful features.

5

Offer to pay for online courses in writing composition and copywriting techniques Your sales teams need to be able to communicate effectively online.

Many leads will first contact the dealership through email, requesting a quote for a particular car. They will take that quote and compare it to other dealerships in the area, and try to talk down prices. However, what most people are looking for, more than a competitive price, is an intelligent, clear and honest salesperson. If your sales team can communicate and create a dialogue with leads through email and chat, they will be far ahead of the local competition.

6

Train your sales team to practice self-promotion through video marketing

Get your sales team comfortable with the idea of promoting their services through video tutorials, employee spotlights, virtual presentations of vehicles. Allowing your website viewers to get a sense of your staff before they get to the dealership will communicate a strong focus on customer satisfaction.

U

se these car sales training tips to create a more dynamic sales team Being in a leadership role, the creativity and enthusiasm you bring to the table will trickle down to your sales team. You have to learn how to trust your team’s individual talents and workmanship–micro management will not help anyone grow. The car sales training tips above focus on blending a focus on foundational skills, refining the sales process, and implementing modern techniques to create a more dynamic team. Stay focused and your sales will surely turn from struggling to succeeding.

SOURCE: https://www.autoraptor.com/6-effective-carsales-training-tips-for-a-struggling-team/

MANAGEMENT

A New Model for Independent Dealers

W

e now live in a customercentric world.

Thanks to the internet, car-buyers have more information and more choices than ever, fundamentally changing the way the auto industry works. This has led to: Greater competition. Independent dealers are up against large dealer groups, big-box retailers like CarMax, and online-only businesses like Carvana.

Running Dealerships Like Tech Startups

sticks approach to marketing. That will no longer cut it. Dealers need a systematic way to build and grow their dealerships.

Silicon Valley companies have transformed the way they do business thanks to The Lean Startup, a New York Times bestselling business book by author and consultant, Eric Ries.

Borrowing tactics and strategies from The Lean Startup, we have created a methodology that will help independent dealers buck conventional trends and find success in today’s highly competitive market.

In his book, Ries outlines a new strategy for building successful businesses, one that promotes continuous learning while minimizing waste. Going lean, Ries argues, is the key to competing in highly competitive markets.

How Does the Lean Startup Apply to Independent Dealers?

The word “startup” evokes images of fast-growing tech companies like Airbnb and Uber. In the automotive industry, we might use startup to describe online-only retailers like Carvana or TrueCar (even though both companies are now publicly traded).

Tighter margins. Price transparency in Even though The Lean Startup was the market means customers expect written with tech companies in the best deal every time. There is little mind, its principles are universal. wiggle room to improve your margin.

We can take what The Lean More noise. It’s harder to be found Startup teaches us and apply it to amongst the thousands of dealers in independent dealers. the industry. Trying to compete with We call this methodology, The Lean marketing dollars doesn’t work when Dealership. dealer groups have near limitless resources.

Franchise dealerships are being bought up by large dealer groups at a record rate. That means independent are facing stronger competition with deeper pockets.

To thrive in today’s industry, independent dealers need to change the way they do business.

A New Way to Do Business Large dealers get away with bloat and inefficiencies because they have the money to do so. Small and mid-sized dealers can’t afford to be inefficient. This is actually a blessing in disguise.

Independent dealers need to learn how to do more with less.

Fortunately, a new model for doing business already exists, but it doesn’t come from the automotive world. For insight, we need to turn to Silicon Valley.

Believe it or not, independent dealers are not that different from technology companies when it comes to building a profitable business.

The Lean Dealership

The Lean Dealership takes the old way of doing business and flips it on its head. That means: Work smarter, not harder. No amount of effort from an independent dealer can match the resources of a Carvana or large dealer group.

Fighting fire with fire is a losing battle.

Independent dealers need to use data and experimentation to work smarter, not harder, to beat the competition.

Measure what matters. We need to use metrics that steer us toward success, not what looks good on paper. Turn rate, for example, is much more indicative of our dealership’s success than total units sold.

Eliminate uncertainty. Most independent dealers take a throwmud-against-the-wall-and-see-what-

The Lean Startup defines a startup as: “Any human institution designed to create a new product or service under conditions of extreme uncertainty.”

I argue that this applies to independent dealerships as much as tech companies. Are dealerships not human institutions who create (and sell) services and products? Is there not extreme uncertainty in the industry, especially for independent dealers?

Tech companies are experts at disrupting highly competitive industries like hotels and taxis.

Independent auto dealers face fierce competition as well, which is exactly why we should learn from the Silicon Valley playbook.

CONTINUED NEXT PAGE

the Front Row | wsiada.com | May/June 2019 |

15

CONTINUED FROM PAGE 15

Lean Dealership Methodology There are 3 Parts to the Lean Dealership model: • What Makes You Different?

• Build, Measure, Learn • Systemize and Automate We will go through each part and share examples of how they can be applied to your dealership. If you are ready for your independent dealership to thrive, then let’s dive in.

Part 1: What Makes You Different?

The key to succeeding in any industry is solving an unmet need in the market. This has gotten more difficult for independent auto dealers in recent years. There are more dealerships than ever, plus larger companies that can operate off less margin.

However, independent dealers still have an advantage over online startups and large dealer groups: They are closer to the customer.

Independent dealers have deeper roots in their community, which means they are closer to the problems their customers face.

Focusing on the customer is how independent dealers win.

Wanting to downsize?

Thinking of Retiring?

Promote your dealership location with WSIADA Lot Leads! email LotLeads@wsiada.com for more information

Understand Your Customers: Go See for Yourself Customers aren’t just going to tell you what they want (and often, they don’t know what they really want).

Instead, dealers need to find out for themselves.

The Lean Startup introduces a Japanese concept called Genchi Gembutsu, which roughly translates to “Go see for yourself.” Genchi Gembutsu means you should develop a first-hand account of your customer’s wants and needs.

from the local competition. The most effective niches today focus on the customer experience.

Examples of customer experience niches: The 110-Point Inspection. Go above and beyond the usual quality assurance measures by completing a 110-point inspection on every vehicle. This attention to detail appeals to customers who value safety and quality.

Bilingual Salespeople. Does your dealership have bilingual There’s a story in The Lean Startup salespeople? Highlight this about a Toyota engineer using differentiator on your website and Genchi Gembutsu. He took a 54,000in advertisements. For non-English mile road trip around North America speaking customers, this is a huge to talk to Toyota’s minivan customers. selling point.

He used his insights to develop the The Out-of-State Buyers Program. If 2004 Toyota Sienna, which had you attract customers from a larger 60% higher sales than the previous region, offer an out-of-state buyer’s year’s model. It was all because program that covers airfare or the engineer understood, first-hand, what customers wanted in a minivan. transportation to your dealership (If they purchase).

Independent dealers should go on their own Genchi Gembutsu journey, The First Car Specialists. Getting that first car is a rite of passage for though it doesn’t require a 54,000teenagers. Win over first-car buyers mile road trip. Instead, dealers can: by stocking the safest vehicles at the Have salespeople write down every best prices. question and objection they hear from potential customers. Analyze to find the Your niche doesn’t have to be brand or price-related. Instead, identify a most common responses or themes. deeper need in your market, one Ask every customer who has that has gone unmet. Until now. purchased a vehicle to complete a satisfaction survey. Ask, “Why did you Part 2: choose our dealership over everyone Build, Measure, Learn else?” , “What could we have done better?” and “Would you buy from us The core principle of The Lean again, if not, why?”

Dealership is to test ideas quickly and The more time you spend with customers, the greater your advantage over the larger competition. This investment in time and learning will pay dividends for years to come.

Identify Your Niche As you learn more about your customers, you should always be on the lookout for an unmet need in the market.

Say, for example, you notice a trend of customers traveling out of town to visit a certain dealership. This is a red flag because no local dealership is fulfilling those customers’ needs.

Your goal is to identify a niche – an unmet need that differentiates you

16 | the Front Row | wsiada.com | May/June 2019

cheaply to determine what works and what doesn’t. This applies to your niche market, running a new marketing campaign, and launching a new service or product category.

The most valuable tool in the Lean Dealer’s toolbox is the Build, Measure, Learn feedback loop.

This method of experimentation will help dealers make profitable decisions and avoid expensive mistakes.

Build an MVP: Minimal Viable Product Independent dealers can’t afford to waste thousands of dollars on ineffective marketing programs.

That’s why you should test every new

idea with a minimal viable product, or MVP.

on traditional 3rd party sites like Autotrader and Cars.com.

Whenever we have a new idea, we make an assumption (i.e., an educated guess) about how effective it will be. An MVP is designed to test that assumption without spending too much time or money on it.

MVP: Post inventory to Facebook marketplace and make sure photos and vehicle information is identical across platforms. Measure the number of leads and the cost per sale (CPS) across Facebook and 3rd party sites in a given time frame.

Deduce if Facebook has a lower cost per sale and generates greater ROI than 3rd Party Lead providers.

Building an MVP starts by asking, “What core assumption am I making about this idea?” and finding a creative way to test it. An MVP should test the core assumption, and nothing else. Here are some examples: Idea: Create an out-of-state buyers program.

Core Assumption: We can make more money on out-of-state buyers than the cost of reimbursing them for travel.

MVP: Run Facebook ads in target out-of-state market and measure the amount of interest (i.e., ad conversions) Idea: Post inventory on Facebook Auto Marketplace Core Assumption: We will attract more sales via Facebook than

Measure the Right Metrics How you measure progress is just as important as the experiment itself.

After running each MVP, you should have a clear answer to your assumption: Were you right or wrong?

If you have a winning MVP, your next step is to tweak the idea and test it again. This time, you can roll it out to a larger audience. Try to improve on the previous versions until you are satisfied with the results.

If your assumption was wrong, then that’s even better. That means you avoided spending thousands of dollars and hundreds of hours on a bad idea. Go back to the drawing board and find another idea to test.

Either way, the process of experimentation never ends.

The problem with metrics like revenue and profit is that they don’t give dealers feedback in real time. They are called lagging indicators because they can only be measured after a certain period of time. They represent the outcome of a program, not what caused the outcome in the first place.

Instead, dealers need to tracking leading indicators, or metrics that will help improve revenue and metrics in real time.

Cox Automotive published a list of 12 metrics (they call them KPIs) that every dealership should measure, including: • Used-to-New Ratio • Market Days Supply • Inventory Turn Rate • Reconditioning time • Gross ROI CONTINUED NEXT PAGE

2019 Education Fairs 5TH ANNIVERSARY!

SAVE THE DATE & REGISTER ONLINE TUE JUL 23, 2019

Doubletree by Hilton 322 N Spokane Falls Ct, Spokane

$

THU AUG 15, 2019

LeMay - America’s Car Museum 2702 East D Street, Tacoma

Register online for your 5 hours of Continuing Education: 25 members | $125 non-members | wsiada.com/education-fairs the Front Row | wsiada.com | May/June 2019 |

17

CONTINUED FROM PAGE 17

In addition, marketing-specific metrics like ROI on ad spend is important to understand which marketing channels are most effective.

Cohort Analysis When tracking metrics over time, it’s easy to get excited about any positive improvements. If sales are up 25% after six months, that’s great!

But which experiments led to the most growth? Did you grow steadily month-to-month or in spikes? Is there any more room for improvement?

Instead of tracking metrics over 6 or 12 months, compare each month to the months prior. This is called a cohort analysis. With cohort analysis, you might find that sales grew 5% in January, but 10% in February. What did your team do in February to double sales? Can it be replicated or expanded?

In the game of continuous improvement, cohort analysis ensures you don’t get caught up in big end-of-year metrics. Always measure yourself against the most recent time period and try to improve each month.

Part 3: Systemize and Automate Dealers should learn something new after every iteration of the Build, Measure, Learn feedback loop. Either the experiments were successful, or they were not. Like a scientist, dealers need to accept the results and move on to the next project.

data they generate to make smarter A Dealer’s Job is Never Done decisions as well. The key is having The Lean Dealership methodology the right tools to do it. is not a one-time task. It is a Modern DMS, CRM, and market system for operating your business intelligence platforms help dealers on a daily basis. Dealers should collect and analyze data from continuously learn more about across the dealership. Dealers can use this data to optimize their their customers and adjust their dealership’s performance and niche over time. As the market improve their margins. changes, independent dealers need to change with it.

Systemizing Workflows After identifying a successful new tactic or service, dealers need to document the process and build a system around it.

For example, a sales manager should create a new script for explaining and selling a new service (Like the 110-point inspection).

This script is documented and incorporated into the existing sales workflow.

The Build, Measure, Learn feedback loop should also be systemized.

Dealers can implement a schedule or scrum board to track planned and ongoing experiments, as well as their results.

Automation The final step of the Lean Dealership is to automate manual tasks.

Manual tasks in sales are especially time-consuming, where customer data entry is practically a full-time job in itself.

An automotive CRM can eliminate redundant data entry, as well as automate customer outreach through email and text. By automating manual tasks, dealers have more time to experiment and improve their business.

Once you do identify a winning idea (either a niche, marketing campaign, or new service), the final step is to systemize and automate the process.

Using Data Large corporations use data to optimize performance. By collecting aggregated data from individual stores, dealer groups can roll out small improvements that make a massive difference at scale.

This type of optimization is not exclusive to large dealer groups.

Independent dealers can use the

18 | the Front Row | wsiada.com | May/June 2019

Moreover, every decision and assumption should be run through the Build, Measure, Learn feedback loop. Successful experiments should then be systemized and automated wherever possible.

The Lean Dealership doesn’t just apply to sales, marketing, or identifying your niche. You can also apply it to your service department, F&I, sourcing, and customer service businesses as well.

Every job and function can be looked at through Lean Dealership lens. In fact, it is the only lens an independent dealer needs.

The fate of independent dealerships isn’t set in stone.

“Consolidate or die” are not the only options. Independent dealers can still thrive in today’s highly competitive world, but to do so, we will have to play by a new set of rules and embrace technology.

Annual Meeting August 15, 2019 At Education Fair West | Tacoma @ LeMay, America's Auto Museum

TRICKS OF THE TRADE

Check out previous issues of the Front Row for earlier lists.

Ways to Steal

from the Dealership The devil’s always in the details, and losing control of your business’s internal processes can add up fast. In the March/April magazine we listed the more common ways employees and customers have found to rip off dealerships; here are nos. 21-30: 21. Carrying employees on payrolls beyond actual severance dates.

22. Falsifying additions on payrolls withholding unclaimed wages.

25. Recording cash receipts with unwarranted cash discounts and pocketing the bogus discount amount.

26. Increasing amounts of pet23. Destroying, altering, or voiding ty-cash vouchers and/or totals in accounting for disbursements. cash sales tickets and pocketing cash.

27. Using personal expenditure 24. Withholding cash sales monies receipts to support false paid-out items. by using false charge accounts.

28. Using copies of previously used original vouchers, or using a properly approved voucher of the prior year by changing the date.

29. Paying inflated invoices in collusion with suppliers.

30. Paying fake (self-prepared) invoices with dealership funds and pocketing the money

Dealer Directives

for Stronger Internal Controls It’s your business, so it’s your business to minimize and prevent theft. As a proactive

flipside to “Fifty Ways to Steal from the Dealership, we’ve also compiled 50 best practices for making sure misconduct doesn’t grow into major losses. Here are numbers 21–30: 21. Hold periodic manager meetings to review and update internal controls as necessary.

22. Stamp keys “do not duplicate”.

23. Change all locks semiannually.

24. Have your parts and service departments shopped periodically.

27. Review and initial all general and standard entry journals quarterly.

25. Detail (spread) and analyze 28. Sign all extended service at least 3 expense accounts each warranty claims. month.

29. Personally meet all vendors.

26. Spot check repair orders, 30. Personally meet all vehicle counter tickets and deal wholesalers. paperwork. the Front Row | wsiada.com | May/June 2019 |

19

20 | the Front Row | wsiada.com | May/June 2019

READ AND RESPOND | May/June 2019

T

he WSIADA Read and Respond quiz allows the reader to earn 1 hour of continuing education credit toward the dealership’s required annual renewal. Payment options are available for members of the association and non-members also for notification to the Washington State Department of Licensing.

DEALERSHIP NAME CHECK:

Send your completed quiz to WSIADA...

MAIL: 707 Auburn Way South; Auburn, WA 98002 FAX: 253-804-0844 EMAIL: education@wsiada.com

DEALER#

I HAVE READ AND UNDERSTAND THE DISCLAIMER ABOVE.

QUIZ TAKER’S NAME

POSITION

EMAIL

SIGNATURE

DATE

BUSINESS PHONE

CIRCLE THE CORRECT ANSWER. 1) There are how many effective training tips for a sales team? a. 4

10) Coolant systems, air filters, and essen-

5} DMS, CRM and market intelligence platforms analyze data for which type of entity?

tial fluids are all simple car care tips for which season?

a. Dealership

a. Autumn

b. Customer

b. Winter

c. All of the above

c. Spring

d. None of the above

b. 6 c. 8 d. 10 2) OFAC (Office of Foreign Assets Control) is one of several Dealer Compliance requirements for a dealership? a. True b. False

6) MVP (Minimal Viable Product) is a marketing program with internet sales for dealerships with which an idea and what else? a. Plan of action b. Core Assumption

11) Utilizing a Customer Relationship Management (CRM) is the right tool in staying TCPA-Compliant a. True

d. Advertisement budget

b. False

3) Every text message sent by your deal-

a. Systemize and Automate

ership should have this included at the

b. What Makes You Different?

end.

d. Summer

c. Facebook presence

7) What is the 3-part model for a lean dealership?

FAX

12) It’s a law to have which type of officer designated for every dealership? a. Police Officer

c. Build, Measure and Learn

b. Executive Officer

a. Reply STOP to cancel

d. All of the above

c. Operations Officer

b. Remove me from your list

e. None of the above

d. Compliance Officer

c. Opt-Out d. Reply Opt-Out to cancel 4} A huge selling point for non-English speaking customers is having a bilingual salesperson a. True b. False

8) Instilling the idea in your sales team that buying a car is an emotional experience a. True b. False 9) A good salesperson is a terrible listener and a partial speaker? a. True b. False

13) When a customer agrees to share their phone number with you, dealerships need to send a follow-up message that asks them to confirm opt-in for text messaging. a. True b. False

the Front Row | wsiada.com | May/June 2019 |

21

READ AND RESPOND | continued 14) The two categories for a sales team to have effective turnaround are what? a. Getting back to the basics and Making of a modern salesperson

16) In 2011, a Medford Oregon dealership settled a class action lawsuit for how much after sending 100,000 text messages to customers over two weeks’ time.

19) Eric Ries is the author of which New York Times best-selling business book that can benefit Independent Auto Dealers?

a. 1 million dollars

a. The Lean Startup

b. Regaining your confidence and focusing on sales processes

b. 2 million dollars

b. The Startup Way

c. Identifying issues and focusing on your team

c. 2.5 million dollars

c. All of the above

d. 5 million dollars

d. None of the above

d. Engaging the customers and hiring salespeople

17) Lot leads is a service by WSIADA for dealers who are looking to downsize, retire or find a new location a. True

15) A cohort analysis is tracking metrics over what period of time. a. 12 months

a. The 110-point Inspection

b. False 18) Identity Theft Prevention Plan (ITPP) is not part of dealer compliance training for a dealership

b. 6 months c. 3 months

a. True

d. Each month

20) What customer experience niches can increase your sales for your dealership? b. Out-of-State Buyers Program c. The First Car Specialist d. Bilingual Salesperson e. All of the above

b. False

f.

None of the above

Please be advised that the information contained in WSIADA’s the Front Row is, to the best of our knowledge, current and correct. However, we caution readers not to use the information provided to them as final authority. Its purpose is to be a guide.

Any legal advice should be regarded as general information. It is strongly recommended that one contact an attorney for counsel regarding specific circumstances. Some articles may express opinions and/or suggestions for best practices.

Likewise, the appearance of advertisers or their identification as members of WSIADA, does not constitute an endorsement of the products or services featured.

Well-loved minivan with 148,300 miles.

We worry about what happens on the road, so you can focus on what happens in the dealership.

AUL Solution: ® Any Year-Any Mileage Vehicle Service Contracts

At AUL, we solve problems. It’s what we do.

We believe in finding solutions that add profitability to your deal, while providing your customers with peace of mind. That’s why for nearly 30 years we’ve worked to bring dealerships like yours customizable Any Year-Any Mileage® VSCs that allow you to meet all your customers’ unique needs.

We customize our plans to fit your dealership’s unique needs by covering almost all makes and models — at any mileage, with no exclusions for wear and tear.

Plus, with dozens of features like same-day claims payments, parts & labor reimbursement, and 24/7 roadside assistance, partnering with AUL is a solution that adds to your bottom line, without adding to your workload. So you can focus on meeting your sales goals, every time.

Learn more today! Contact Benchmark Dealer Services 360.836.5433 or at meetwithus@benchmarkdealer.com weareaulcorp.com

22 | the Front Row | wsiada.com | May/June 2019

Washington State Independent Auto Dealers Association

Dealer Member Enrollment

YES!

I know that it is important to be recognized as a professional in the automotive industry!

Enclosed are my annual dues to ensure that my business has all the advantages WSIADA/NIADA provides to put me at the forefront of my profession. By completing this form, I am consenting to and giving WSIADA/NIADA, their affiliates and/or subsidiaries, my permission to contact me at the methods I have provided on this form until/unless I revoke that permission in writing.

I hereby certify that (I am/we are) eligible for membership in WSIADA.

ENROLL: Member Name Business Name

Dealer No.

MEMBERSHIP CATEGORY: Dealer Membership is [a] limited to any sole proprietorship, partnership or corporation which is engaged in buying and selling motor vehicles as a principal part of its business; and [b] member must hold a vehicle dealer’s license issued by the Washington State Department of Licensing.

$450 Annual Charge (payable by debit/credit card or company check) $42 Monthly Charge (debit/credit card only; will be charged on the 1st of each month.

Cancellation will require payment of full balance.)

Billing Address City

State

Business Phone

Mobile

Zip

County Fax

Email

See reverse side of form for some of the many benefits of WSIADA membership!

PAYMENT METHOD:

CHECK No._______________ (Checks are not accepted for monthly membership payments) VISA

MC

Discover

CARD NUMBER

NAME ON CARD

AMEX

EXPIRATION DATE

CARDHOLDER SIGNATURE

CCV

BILLING ZIP CODE

DISCLAIMER: Receipts will be emailed unless otherwise requested. This agreement will continue until/unless the card holder revokes consent in writing or cancels membership. At that point member will be billed for the remaining balance. If provided card is declined, WSIADA may continue to attempt to process payment(s) or request updated payment information. If payment is declined and no card update issued, dealer will be invoiced for remaining balance and access to WSIADA services will be suspended until balance is paid in full.

DELIVER TO:

WSIADA 707 Auburn Way South Auburn, WA 98002

FAX 253-804-0844

EMAIL(as an attachment) membership@wsiada.com

ENROLL ONLINE www.wsiada.com

the Front Row | wsiada.com | May/June 2019 |

23

Service Provider Directory WSIADA Service Providers know our industry and understand what you need as a dealer. When you’re hiring professionals, support the ones that support your Washington Independent Auto Dealers Association (let them know you saw them listed as a WSIADA Service Provider).

Accounting Services

Bonds and Commercial Insurance

Legal Services

RH2 | Rekdal Hopkins Howard

Farmers - Karen Dunn Insurance Agency

Davies Pearson, P.C.

(425) 658-1400 rh2cpas.com Learn more on page 9

Auctions Adesa Seattle

(253) 964-7070 business.farmers.com/karen-dunn

Shepard & Shepard Business Solutions (855) 396-0488 shepquote.com Learn more on page 16

(253) 735-1600 adesa.com/Seattle Learn more on page <#>!

Custom Signs

Adesa Portland

(253) 445-6424 signdogs.com

(503) 492-9200 adesa.com/Portland

Copart Auto Auction (253) 847-8300 copart.com

CTM Unlimited Auctions (877) 396-5808 ctmunlimitedauction.com

DAA Northwest

(509) 244-4500 daanw.com Learn more on the inside front cover

DAA Seattle

(253) 737-2200 daaseattle.com Learn more on the inside front cover

Ehli Auctions

(253) 572-0990 ehliauctions.com

Insurance Auto Auction (IAA) (206) 658-6900 iaai.com

Kaman Auctions

(425) 640-5111 kamanauctions.com

Manheim Seattle

(206) 762-1600 manheim.com Learn more on the inside back cover!

Yarbro Auctioneers (509) 765-6869 yarbro.com

Sign Dog

Dealer Management Systems Carousel Software

Washington Retail Association (360) 943-9198 waretailservices.com

Lending Lobel Financial Corp.

(253) 839-2600 lobelfinancial.com Learn more on page 3

United Finance Company (503) 238-6475 unitedfinance.com

Marketing

Dennis Demattia demattia@alcm.org (509) 926-8848 carouselsw.com

Sygnifi Networks

Frazer Computing, Inc.

Parts & Service

(888) 963-5369 frazer.com info@frazer.com

Skywerks

(206) 999-6699 skywerks.com Learn more on page 20

Finance and Insurance AUL Corp.

(800) 826-3207 aulcorp.com Learn more on page 22

(833) 794-6434 sygnifi.com Learn more on page 13

AutoZone

(866) 727-5317 sc53@autozone.com Learn more on the back cover!

CoverCraft

(405) 238-9651 covercraft.com

Vehicle Warranty NVP Warranty

(888) 270-5835 nvpwarranty.com

Northwest Dealer Financial Services (206) 718-7234 (Western WA) (509) 705-7597 (Eastern WA) nwdfs.com

Protective Asset Protection

(866) 384-6320 protectiveassetprotection.com

Ries Management

(206) 290-3993 riesmanagement.com

Advertise with WSIADA! THE FRONT ROW magazine is the most effective way to reach over 1,600 auto dealers in Washington State.

Fleet Management Spireon

Benefits & Health Insurance

(253) 620-1500 dpearson.com

(800) 557-1449 spireon.com

Floor Plan Companies Floor Plan Xpress (509) 703-6558 fpxus.com

24 | the Front Row | wsiada.com | May/June 2019

Contact WSIADA for more information about targeting your ad dollars today!

253.735.0267

WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION 707 Auburn Way South Auburn, WA 98002 WSIADA.COM

PROVEN TOUGH FOR THE PROFESSIONAL WEâ&#x20AC;&#x2122;VE BUILT OUR BRAND TO PROTECT YOURS Duralast auto parts are produced to the strictest standards by trusted manufacturers who utilize the highest quality materials, state-of-the-art processes, and well-designed, durable components. You can depend on Duralast

Š2017 AutoZone, Inc. All rights reserved. AutoZone, AutoZone & Design and Duralast are registered marks of AutoZone IP LLC or one of its afďŹ liates.