PROFIT DRIVERS BLOG / www.ProfitDrivers.ca
AUTOMOTIVE BUSINESS MANAGERS / F&I MANAGERS...Industry Insights, Sales Tips, New Ideas, Stories, and Successes including How to Overcome Objections for all Experience Levels, Novice to Seasoned Professionals!
Profit Drivers Blog

How to Run Your Office Efficiently!


Systems will result in a complete process, executed correctly every time!
Missing pieces are disruptive and waste valuable time!  For every action there needs to be a step-by-step process AND that process needs to be written down.  One of my beliefs is that your office should be so well run that someone can be parachuted into your job and be able to pick-up where you left off without too much difficulty.  It takes work to make this happen because it requires lots of written description and who in this world wants that boring job?  YOU DO!  Imagine having days off without a long string of telephone calls from your part-time fill-in person or, imagine returning from holidays without a mountain of incomplete tasks to face!
 

Have a SYSTEM for everything you do.  Here are some examples of processes you will follow as a Business Manager/Financial Services Manager in an automotive or RV dealership: 
  • PHONE LISTINGS:  Keep ALL important contact names and numbers in an easy-to-access place
  • LOGINS and PASSWORDS:  Keep ALL logins and passwords in one place, in close proximity to the Phone Listings
  • SOFTWARE:  What is each program used for; Who can help if problems are encountered; What training is available for the programs; phone contacts, logins and passwords will already be recorded as above
  • NEW DEALSTake a few minutes with the salesperson to review the deal; Are the clients brought to you or do you go to get them; What information do you need with each new deal; Who arranges the appointment to pick-up the new vehicle if it's not delivered that day; Where are appointments for the Business Manager/Financial Services Manager recorded - they should be visible to everyone; Mark notes on each deal cover to identify it's current status
  • TRADE-INS:  What happens to a trade-in from the moment it hits the dealership; What paperwork is required; Who is responsible for each step; What happens to wholesale units, what is the process for those
  • RDR (Retail Delivery Report):  Who is responsible to register vehicles; What is the cut-off hour at month-end; What complications may arise during registration and what are the solutions to those
  • SALES:  What log system is used to record sales; Where is the cost information stored; What targets are you reaching for; What strategies do you have in place to reach your targets
  • FUNDING:  Use a checklist and detail any quirks about lenders you frequently use; What is the turn-around policy at your dealership for funding once a vehicle has been delivered
If you would like to improve the systems and create processes in your office, tackle just one at a time, write the steps from beginning to end, once completed, start on another system.  If you have any other suggestions for tasks or responsibilities in your office that need a SYSTEM, let us know by clicking on Add Comment below.  Over time our membership website will have a complete list of SYSTEMS with suggested processes to help you develop and maintain a very well run finance office!  

What's YOUR Willingness to be a Top Performer?

Peeling the Onion!

Has she lost her mind?  What on earth does peeling an onion have to do with sales or a Finance Manager at an automotive or RV dealership?  It has to do with...

being REAL...being HONEST...being YOU
                                                                                                                   
PEELING THE ONION is an expression used to describe the process  ofstripping away the layers of our personality to get to the core of whowe are!  This message has been so loud and clear this week that I haveto bring it up.   Here's the most important part...when you speak toothers with pure honesty, you develop deep relationships lighteningfast!  The protective shields that we build around ourselves are SHATTERED when face-to-face with real, honest people!
 
 
How does this apply in a professional setting?  Internal orexternal clients, it's all about THEM!  LISTENto their wants, needs and fears.  Present your products to fulfilltheir wants and needs and dissolve their fears!  If your client isbudget-minded, they are perfectly suited to build budget-protectiveproducts into their payment, like extended warranty upgrades oraccident and health coverage - to name only a couple.  MONEY is theroot of the evil that gets in our way!  Remove ALL thoughts offinancial gain from your conscious and subconscious mind.  To do this,I challenge you for the next 30-days, to practice being the very bestfinance manager in your city, your province, your nation.  Practice listening and fulfilling wants, needs, and dissolving fears.  Each time you aretempted to check your own (financial) gains, ignore it!  Train yourselfto do this and this practice alone will increase your sales.
 
 
I am fortunate to get to know some of the best finance managers in theindustry.  I will tell you that the best of the best have masteredtheir craft by focusing on their clients first and concerningthemselves with their own financial gains  m u c h  later.  We are allmotivated by money on some level, there is no doubt to that.  How you allow MONEY tocontrol your actions and reactions is key here.  Peel your onion and speak to your clients from your core rather than your pocketbook!  Practice the 30-daychallenge and let me know your results! 

 

What's YOUR Willingness to be a Top Performer?

 

A Happy Life

This 3-minute movie is a must for anyone who is looking for a happy jolt to their day. 
Terrific quotes from brilliant people will surely speak loudly to you, they certainly did for me!
 

Turn up your speakers, sit back in your chair and
ENJOY...click on the image to play



What's YOUR Willingness to be a Top Performer?

The Secret to Explode Your Sales!

You must have a Strong and Powerful WHY!

Your WHY is YOUR driving force!  It's like your transmission, it will keep you traveling casually along at a cruising pace or it will turbocharge you ahead, it all depends on how BIG and how important your WHY is to you.  Improving your sales for your own reasons is far more motivating than it is to improve your sales because your boss tells you to.  Some people are fortunate that their WHY is HUGE, it's in their face every day, maybe they have a big family with hefty responsibilities, maybe they are saving to buy a bigger home, a big boat, a family vacation-of-a-lifetime, the car of their dreams, or maybe they have a dedicated retirement plan they are saving diligently for.  It's important to have pride about your performance and to feel respected by your peers because of your exceptional sales skills.  It's comforting to know that as a top-performer you have less chance of being let-go should the economic times require a cut in staff members.  Above all this, your own personal driving forces are the powerful motivators that will catapult you forward!  Most importantly:
  • KNOW YOUR WHY!
  • Be certain your WHY is HUGE, it must be a stretch for you! 
  • Have crystal clear time and dollar targets for your WHY.
  • Once you have achieved your WHY, make a NEW one.
If you aren't sure what your WHY is, we need to find it.  As a Profit Drivers member, we will find your motivators through one-on-one sessions.  For further information about that program, email me (Cathy) directly or call #250-888-6883 (Victoria, BC).

What's YOUR Willingness to be a Top Performer?

CASH BUYERS to FINANCE BUYERS

Join us for our WEBINAR!

Topic:   HOW to CONVERT CASH BUYERS to FINANCE BUYERS
When:   Tuesday, May 19, 2009
Where:  WEBINAR, at your Desktop!

At this exciting, interactive event you will learn:
  • What tools to use to overcome low mortgage and line of credit rates
  • How to move customers attention away from higher loan rates
  • Why a collateral loan is preferred to mortgage or line of credit financing
Registration for Profit Drivers Members $19.00 +gst
Registration for Non-Members $29.00 + gst


To register and make payment online, click here


What's YOUR Willingness to be a Top Performer?

WEBINAR Reminder

Topic:   HOW to SELL MORE CREDIT INSURANCE

When:    9:30-10:30am, Tuesday, May 12th, 2009
              OR
              9:30-10:30am, Tuesday, May 26th, 2009

Where:  WEBINAR, at your desktop

 
Get ready to increase your sales:
             ♦Why customers insure auto loans in addition to other private coverage
             ♦How to overcome the cost objection
             ♦How other financial institutions present this product

Cost for each event:  Non-Members $29, Profit Drivers members $19 (+gst)

To Register and make payment online, Click Here


What's YOUR Willingness to be a Top Performer?

For every MOM you know!


"2009 Mother of the Year"

Customize a message to every mom you know who receives email!
 
It will make her smile!

MOM is Special! 
Click Here for a direct link.

Present an IMAGE of a Finance Manager

P R O F E S S I O N A L   I M A G E

Imagine that you have a very important appointment with your banker. Maybe you are buying a new home, you want to renovate and improve your existing home or you are looking to grow your business. In any of these cases and for many other reasons than these, you will need to visit your personal banker to borrow money. How impressed would you be if your banker had messy hair, their tie was sloppy and crooked, shirt wrinkled, pants too short, fingernail polish chipped, acrylic nails missing, shoes dusty or dirty or both, buttons missing, still wearing their jacket (are they just coming or just leaving, in either case it doesn't look like they are staying)...I'm sure there are several other signals that would send a message of uncertainty about how capable this personal banker would be to take care of your financial matters...after all, they can barely put themselves together properly!

The point here is, IMAGE is paramount in the eyes of your customer/client. Take the extra time needed to present a clean, crisp image! This makes an impression on your internal customers too (the people you work with!). To be taken seriously like a banker, you must take yourself seriously. As a Business Manager/F & I Manager in the automotive and RV industry, you have a very important job and you are seen as the “finance expert” by everyone you come into contact with, you collect the money for every vehicle sold and you process finance applications!

Be impressive! Create an Image of an Expert! You are who you Believe you are...present yourself as the highest paid Business Manager/F&I Manager in your entire town, city, province! When you start to act like the person you want to be, you put into motion the actions of growing into that person. Your practice of this DAILY will create the results you seek. Dare to be all that you can be!

What's YOUR Willingness to be a Top Performer?

Overcome Objections to Extended Warranty by Elderly Customers!

Some objections you may face from elderly customers when offering an Extended Warranty on their new(er) vehicle may sound something like this: 
 
  • This is the last vehicle I will ever own, I don't need a warranty
  • The car may outlive me, I don't know if I will be driving for another day, another month or another year, I don't need a warranty
  • I trade my car every few years, I don't need a warranty
 
To overcome these delicate objections, you need to be inquisitive and get more information with further questioning.  Your customer is handing you an easy disguise to the real objection which is typically "I don't want to spend any more money today".  Be sincere.  To do that, you must understand that your questions may not always lead to a sale.  You want to ask questions that lead to certain future outcomes: 
 
  • What will the customer do with the vehicle once they are no longer able to drive?  For example, will someone in the family be gifted the car who will be responsible to take them on their errands?  Perhaps a younger grandchild who is deserving will be gifted the car.  They certainly don't want the future family owners to be burdened with unexpected repair costs.  If they purchase an extended warranty for the car now, at today's prices, they will appreciate the peace-of-mind later when they no longer own the car but someone in the family does.
 
  • Once their ownership time has come to an end, what will they do, sell the vehicle?  A vehicle will sell much faster in the private market if it has a valid extended warranty on it and a customer will pay more for that vehicle.  Ask your customer, "If you were in the market today for a used vehicle, would you pay a little more for a car that had a comprehensive extended warranty on it?  If you were comparing two like vehicles, which one would be more attractive to buy, one with or without a comprehensive extended warranty?"  It's a fact, as a vehicle ages, it is more likely to need mechanical repairs.
 
  • If it is a concern to spend the extra $ today, then it's imperative to break down the cost of the warranty in terms of mechanical repairs.  Seek some concrete evidence from your service department, ask them for copies of mechanical repair warranty claims (for privacy reasons, be sure to remove all information about the customer).  That's right, show your customer how much money the warranty company spends on various repairs.  Make sure your invoices are from different vehicle models and for different types of repairs, from a basic alternator, to the mid-summer crisis of having no air conditioning in extreme temperatures and facing an unexpected air conditioner repair while on vacation (ouch!), to the absolute misery of an engine or transmission failure, putting a major kink into their budget!
 
  • An alternative to tossing copies of warranty repair work orders in front of your customer or displaying them in your Evidence Binder, you may prefer to show your customer the cost effectiveness of the extended warranty by presenting a breakdown of the hourly service rate plus parts costs compared with the warranty cost.  This is a much more detailed approach but very effective and commonly used as a technique to overcome extended warranty objections.  If you would like more explicit details, let us know by clicking "Add Comment" below.
 
The idea here, is to present a visual experience when overcoming the objection.  These will apply to many situations other than only elderly clients.  Imagine what could possibly happen if an unexpected repair bill faced your family.  What would be the worst possible time for that unexpected bill to occur?  Create a story and a picture of what that would be like for you and use it to overcome objections.  You see, if you could imagine an $800 alternator repair causing havoc in your household; if you could imagine the crisis on your hands when your vehicle breaks down on a road trip; if you could imagine the lean Christmas gift-giving if your engine or transmission pack it in right before or worse, during the festive season, then you can express that major concern sincerely!  This becomes much more than just a story, it becomes a potential fear within yourself...people buy for two primal reasons:  to gain pleasure and avoid pain.  By far, THE most compelling emotion that drives sales is FEAR.  If you can sense the FEAR of not purchasing this product, your customer will sense that sincerity in you and there is a very good chance that they will buy what you are offering!

If you have objections that are a challenge for you to overcome and you would like some suggestions, let us know by clicking "Add Comment" below!

 

What's YOUR Willingness to be a Top Performer?
 

Where is the $12 Billion Fund Offered in the Canadian Budget?

 
An article published in our Profit Drivers website early this year referred to a            $12 Billion Fund called the Canadian Secured Credit Facility, to be backed by loans and leases on vehicles and equipment, offered in the Canadian Budget announced on Tuesday, January 27, 2009.  The hope was that this $12 Billion Fund would ease-up recently tightened lending practices by offering more money accessible to auto finance and lease lenders.  Have you been wondering where the heck that money is?  After all, have you noticed any increase to credit approvals? 
So, here's the update, an excerpt taken from an article by Nicolas Van Praet, reporting for the National Post/Financial Post, Saturday March 21, 2009:
"...Stephen Harper's government is working out a plan that will see the government purchase up to $12-billion in asset-backed paper backed by loans and leases on vehicles and equipment.  By getting into securitization, Ottawa hopes to make financing and leasing more available for consumers while freeing up commercial credit for dealers.
Some, like Richard Gauthier, president of the Canadian Automotive Dealers Association, are optimistic a deal can be hammered out that will see money start to flow to the industry by may.  Some 125 industry representatives met at the King Edward Hotel in Toronto in mid-March to discuss how to implement the securitization plan, he said.
"There is absolutely no doubt that this money is going to get out there," Mr. Gauthier said.  There's a profit to be made fro the government that could even see Ottawa eventually expand its purchase of securities, he said.
Others, like Stephen Beatty, managing director of Toyota Canada Inc., caution that $12-billion might not be enough even to cover the needs of the automakers' financing arms, let alone other Independent lenders.  And they warn that to kick-start sales, the money has to be available now.  If it isn't, governments have to consider other immediate approaches to get more people into dealerships...."

There you have it!  Hope that the auto industry will see more funds available to finance or lease automobiles by May!  Click Here to refer to the entire article.

What's YOUR Willingness to be a Top Performer?

NEW Credit Card Scam!

Newest credit card scam is slick, the caller provides YOU with all the information EXCEPT THE ONE PIECE THEY WANT. 

Click Here
for direct link to our Home page with full details (article dated March 7, 2009, under Current News).

What's YOUR Willingness to be a Top Performer?

New Job Posting in Victoria, BC

Craigslist has a new posting for a Business Manager at Glenoak Ford in Victoria, BC

Click Here for direct link to the ad.

What's YOUR Willingness to be a Top Performer?

Cash Conversion Tips

  Finance
  or Cash?

These days it seems to be harder and harder to convert cash buyers to finance their automotive purchase.  It would seem logical that when interest rates are low to borrow money, people would be standing in line to gobble up the opportunity.  The challenge this presents is that when rates are low for borrowing, they are also low for investment yields.  Many people feel that it is wasteful to keep their cash in investments when their gains on the investment are at an all-time low.  As Business Managers/Financial Service Managers, we don't want to imply to our customers that we are investment advisors because that's a whole career in itself but we can give some solid, sound advice.  Typically, people are reacting to fear that they hear and read about in the media.  It's our responsibility to remind the cash customer of a few valuable facts, ultimately they will make their own decision but these points are important refreshers:
  • Personal Line of Credit  A customer using their line of credit to purchase a vehicle is not a true cash customer.  It's your job to find out whether they have the cash sitting in a bank account, if it's funds invested that are being collapsed OR if it's a personal line of credit.  There are many reasons a customer should not purchase a vehicle with this resource.  Consider these:
  • A personal line of credit is secured by a customer's tremendous banking track record thereby their signature is all the bank needs to be confident that the debt will be repaid OR, as with most lines of credit these days, they are secured by the customer's home.  It's better security for the bank. The value of real estate is dropping.  If a line of credit is secured by real estate and the bank believes that the value of the home now jeopardizes the amount they have extended against it in credit, they can call that line of credit as DUE and PAYABLE any time.  If the borrower doesn't have the cash accessible to payout the debt in full, the amount owing on the personal line of credit will be rolled into a monthly repayment term at a personal loan interest rate as deemed by the bank. 
  • These financial instruments were originally designed by the banks to keep their clients committed to them for their future financial needs; to have funds readily accessible for sudden events that are time-sensitive and may otherwise be challenging to get a loan for, like emergency home repairs (the roof is leaking!), an unexpected family emergency (maybe for an illness or aging parents), or for an amazing investment or business opportunity that has suddenly presented itself.  Customers should keep their personal line of credit intact and available should they need the funds for any of these reasons.  If a customer qualifies for a collateral based loan (the bank has an asset as security - like an automobile - so they have something they can take ownership of for resell should the client not fulfill their repayment obligations), they should take advantage of that finance opportunity and preserve their line of credit for non-collateral purchases like those mentioned.
  • Cash Is KING!  Ask your customer if they know who was successful following the Great Depression of 1929 and why?  It's a simple principal, as consumer spending dropped, company values declined too, real estate values fell, the stock market had already plummeted, and so on.  Those who had cash were KING!  When the price of everything was in the gutter, the cash holders bought everything at a massive discount and waited for the economy to recover, increasing their asset values multiple times the purchase price.  So how does this relate to your cash customer?  Well we never want to insult anyone's intelligence and you may just come across someone who is a professor about the Great Depression.  Indeed some will know more about this topic than you and I together.  For the average Canadian though, they will agree with you that the purchase of products and services at a massive discount and selling them at retail is a fundamental business practice.  None of us have a crystal ball.  So, to be conservative, consumers are wise to keep their cash,take advantage of the low-interest rate times, and if they are ever in a need to remove themselves from the monthly obligation, their cash is still intact.  If on the other hand they are propositioned with an amazing opportunity, the cash is available for that purpose.
  • Make More Money  This is a simple principal and worth mentioning although many of you and your customers already apply it.  For those who are newer to the Business Manager/Financial Services Manager position, this is a fundamental you need to know.  The manufacturers are still offering some dynamite interest rates on new vehicle purchases.  If your cash customer takes that financing offer and stashes their cash into a secure deposit, GIC or other instrument, they can earn more interest on the money they have tucked away than what they are paying on the automobile loan.  In a real world scenario, lets say that your manufacturer is offering 1.9% financing on the customers vehicle model of choice.  The cash customer can take the sum of that total vehicle purchase, the amount they would otherwise write you a cheque for, and invest it into a GIC.  A 5-year term will get them about 4%, maybe more if they shop around.  Do some research on your own to compare your store manufacturer interest rates and the investment rates offered in the marketplace.  Make some phone calls to banks and ask the questions.  Knowledge is powerful.
If you have any other suggestions for our readers, we welcome your comments, click Add Comment below.

What's YOUR Willingness to be a Top Performer?

Fraudulent Business Office Practices!

I came across this article and had to share it with you.  It is hard to believe that blatantly fraudulent business office practices such as these still occur.  The following is a segment of an article published in the Automotive News Weekly Newsletter, digital edition for February 2, 2009:

Louis Harrelson's six-store dealership group used the slogan "Everybody rides." But federal prosecutors say the dealerships took lenders for a ride, as employees falsified income and accepted household appliances as trade-ins to secure customers' loans.

Harrelson, whose stores are in Charlotte, N.C., has pleaded guilty in a U.S. district court to aiding the crimes of nine former employees. They falsely secured loans between 1999 and 2005 that cost lenders more than $1.2 million, federal prosecutors say.

Harrelson, 79, has worked in auto sales since 1955. His six stores sold Mazda, Nissan, Toyota, Ford, Suzuki and Hyundai brands. The Nissan store was not involved in the fraud.

"The philosophy of the Harrelson dealerships was, 'Never let a customer leave the store without purchasing a vehicle,' " the employees' indictment said.

To secure sales and receive their commissions, the indictment said, employees sent consumer lenders false information about customers who wouldn't ordinarily qualify for loans. Many times, customers defaulted on loans, resulting in the lenders' losses.


The Harrelson hustle
By falsifying loan applications, Louis Harrelson's employees got financing for customers who couldn't qualify elsewhere. To get loan approval, the employees
• Told lenders that customers without down payments had received in-house rebates
• Inflated trade-in values to make up for too-small down payments; in some cases, customers used household   appliances as trade-ins
• Accepted checks for down payments, knowing the checks probably would bounce
• Inflated customers' incomes and job titles
• Reported that some credit-challenged customers worked for a local newspaper; the newspaper's owner confirmed the lie in exchange for the purchase of advertising
Source: Court documents

For the full story, refer to the Automotive News subheading in the NEWS menu tab of Profit Drivers website, click Automotive News Breaking News Feed and type Dealership fraud:  Phony credit info in the search box on the web page you are redirected to.

What's YOUR Willingness to be a Top Performer?

What Determines SUCCESS or FAILURE?!

YOU CHOOSE!

WE ARE WHAT WE THINK...we become what we think about

The Human Mind is like the Farmer's Land, it will return what you plant. 
It doesn't care what you plant in it but it will return what you plant!

GARBAGE IN, GARBAGE OUT

SUCCESS or FAILURE?

DECIDE NOW.  WHAT IS IT YOU WANT?

In Your Career
With Your Family
In Your LIFE!

S     P     A     R     E           Y     O     U     R     S     E     L     F         3         M     I     N     U     T     Z    
and watch this movie...click on the image to play  
   



Apply this EVERY day!  Practice diligently and watch your sales grow...with less effort.  Sure, maybe you see less customers these days but guess what, you can choose to make the same paycheque as before...with less customers.  Perhaps you will miss the mark a little and maybe you won't.  One thing is for sure, Your Mind doesn't care what you think about, it WILL return what you plant!  DECIDE NOW.  What is it that you want?

What's YOUR Willingness to be a Top Performer?

How to Get Challenging Finance Deals Approved!

EVENT NOTIFICATION!

Lunch 'n Learn WORKSHOP:                                                                                                  

Feeling the Credit Squeeze?
How to Get Challenging Finance Deals Approved!

Lender Showcase:  Scotia Dealer Advantage
Presenting, Jake Stacey, Area Manager


WHEN:Thursday, January 15, 2009
  
TOPIC: WHAT is really going on in the credit markets today
and HOW to work through it with Positive Results!

  
WHERE:
OLIVE GROVE RESTAURANT, 4496 West Saanich Rd, Victoria
  
COST: Non-Members $28.00 (+ gst)
Profit Drivers Members $18.00 (+ gst)
ALL Late Registrations after January 12th $32.00 (+ gst)
 
 Limited Seating...Register Today!
Contact Cathy by email, or phone 250-888-6883

MINI-MENU SELLING TEMPLATE

Following last week's post I was asked for a Mini-Menu Selling Template to serve as a guide to create one customized for the Business Manager inquiring.  So I drafted one, click here for a copy.  Print a copy if you like.  You can modify it as suits your needs.  The idea is, you start with a small package of add-ons with your BRONZE package, add more in the upgraded SILVER package, offering ALL your products in the GOLD package.  You may prefer labels like BASIC,BETTER, BEST, you may prefer to offer the products in different package arrangements, there are multiple variations to this.  The Full Disclosure details at the bottom of the page ensure that you are in full compliance with laws, regulations and legislation governing the automotive industry in BC.

If you do use this Template and have success with it, PLEASE let us know!  We THRIVE on proven results and love to hear about how our suggestions helped you, because that may have a ripple affect to encourage others to use it, helping them too!  If you make modifications that worked well, share those also!  This blog is dedicated to your success as a Business Manager!  The more we network together, the better each one of us will be.  If you see that this selling tool will help increase your sales, you may be interested to consider a reputable menu selling software for your dealership!

What's YOUR Willingness to be a Top Performer?

How Do I Upsell When Payments are Quoted on the Sales Floor?!

This is a challenge if you don't have any tools or suggestions to work with.  It may take testing a few of these to see what works best for you.  It's highly recommended to try any one of these suggestions for one month, to see if it produces improved results for you.  If any of our readers have other suggestions, PLEASE share them, click on "Add Comment" at the bottom of this post, and follow the default boxes provided.

Here are some Suggestions:
  • Back to Basics.  Start from square one, build rapport, go through your sales presentations product by product,  overcome objections, and close.  Sounds simple huh?  When a customer comes to the business manager with a payment quote from the sales floor, we assume that it will be a challenge to upsell.  Start with the mindset as you would with a customer that comes into your office without any payment quote, and be thoroughASSUME they are interested in every product you have to offer.  There may be more work to overcome their objections and it may take more time to close the sale but first and foremost, you must program your own beliefs and stay firm with those.  BE CONSISTENT!
  • Mini-Menu Selling System.  Create a master 3-column menu on a 8-1/2" x 11" piece of paper that you will photocopy.   Leave enough space at the top for a heading and your dealership's information.  Leave enough margin in the left side of the sheet to input details about the car purchase (ie: price, taxes, fees, accessories, etc).  Starting on the left side of the page, create "packages" in each column.  Label these something like the Bronze, Silver and Gold packages, or whatever you prefer.  In each column, add products that will affect the payment such as (you can adjust these packages any way you like):  1st Column, Life Protection and Warranty; 2nd Column, Life Protection, Warranty and 2-Part Protection package; 3rd Column, Life Protection, Warranty, 4-Part Protection package and Disability Insurance.  You will manually enter the new payment amount in each column, increasing as products are added.  Also, at the bottom of each column, below the menu box, manually enter the amount of each product offered in that package.  If this works well, you may consider to use a reputable menu selling software that will facilitate this process on your computer screen.
  • Assume the Sale.  Begin your sales presentation by explaining to your customer that you always include (for example), an extended warranty with their payment, to ensure future repairs are built into their monthly payment budget, and life insurance to ensure that their vehicle will go to their estate free and clear title, should something unexpected happen.  Relieve your customer's fears, let them know that they are not committing to purchase these products, they are considerations, and everything will be fully disclosed to them, they always have the final decision whether they wish to take advantage of the products.  The objective here is to introduce the idea that you are including other products in your discussions, you are defusing their fears that they are committed to purchase these and, giving them the control of the final decision.  You may need to go into further features and benefits of these initial products, it will depend on your customer.  In some cases, there will be no further discussion and the sale of those products will be complete.  Following this, you can proceed with presenting your other products.  You will need to start with a blank piece of paper to write the changes in the monthly payment each step of the way, and (perhaps at the bottom of that sheet), mark the total cost of each product.
  • Present Payments Like Their Bank Would.  Start your presentation with payments like their bank would offer them.  If a consumer applies to their favoured financial institution for a loan, their personal banking officer will offer payments with both, life insurance and disability coverage.  Banks have been lending money much longer than auto dealerships have been offering financial services to facilitate purchasing a vehicle, they are the masters at this process.  So, with that blank sheet of paper in hand, start at the top of the page, mark their monthly payment with life protection only, then disability protection only, then their payment with both coverages.  Always disclose the total amount of each premium at the bottom or side of the page, to ensure you follow full disclosure regulations.

The language that you use in any sales presentation is crucial.  You may find that one word is costing you sales.  Be very analytical of the words you use and think about how those are perceived by your customer.  For example, rather than saying "these products are optional", say something like "these products are considerations" or "these products are available to you" or "this vehicle/financing is eligible for".  Use words that imply this is an opportunity to take advantage of these products!  Your enthusiasm and belief of these products will have a huge impact on your sales!

Remember, according to
the Business Practices and Consumer Protection Act, when quoting payments, the total amount of any add-on products must be disclosed in addition to the increase to the monthly payment amount.  That doesn't mean you have to highlight the information or create a major display of it, you simply need to disclose it.  Work within the perimeters of the laws governing our industry and you will be relieved of potential repercussions initiated by the consumer!

Other suggestions?  Share them with the rest of us!  
                          
HAPPY NEW YEAR!             
                              
May 2009 be filled with much
Laughter and Prosperity!

 
                                                
What's YOUR Willingness to be a Top Performer?

VSA-Course Specific to Business Managers Possible within One Year

It seems odd that Business Managers in the automotive industry are licensed by means of the same course that salespeople take. The responsibilities of the Business Manager reach far beyond those of simply selling products. As revealed in the TeleConference of December 12, 2008 with Terry Lineham, Program Director, Learning Division of the Motor Vehicle Sales Authority of BC (VSA), we may see a course specific for Business Managers within one year! 


Listen to a clip (1:35 min) from the Recorded TeleConference, where this topic is further discussed:

Download | Duration: 00:01:35



What's YOUR Willingness to be a Top Performer?

TeleCONFERENCE Notice

MARK YOUR CALENDARS!

LIVE TELECONFERENCE
 
When:  Friday, December 12th at 9:30a.m.(PST) 
 
Topic:  How LAWS and REGULATIONS Affect SALESPEOPLE!
             presenting, Terry Lineham, Program Director, Learning Division, VSA
             (Motor Vehicle Sales Authority of BC)
             A brief overview of the history and present role of the VSA and to inform salespeople
             (that includes Business Managers) how these laws and legislation impact them!      
 
Refer to www.profitdrivers.ca for full details

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