Wednesday, May 6, 2009

BACK ON THE ROAD....to SUCCESS

DEALER and MANAGEMENT REPORT
Dave Kemp, the Automotivator

Hey, despite the media clanging alarm bells regarding the challenges of our auto manufacturers, retail vehicle sales continue to surprise everyone—except the car dealers. The Canadian car retail business is pretty darn good—all makes, import and domestic. Why?
Because automobile dealers take action when threatened and overcome the threat. They have made positive decisions in these negative times to increase sales staff effectiveness, decrease overhead and improve the buying experience. That is what my clients have done, with great results. Most General Motors and Chrysler, Saturn dealers have retailed vehicles very well despite the best efforts of Presidents and Media moguls pitching bad news. The customers have responded voted with their bucks too.

With inventories falling as sales people work their repeat client sales, and showroom walk-ins come in ready to deal, production should be kicked into gear real soon. A report released late April says, "The sharp cutbacks in industry output and the recent sales improvement will likely reduce U.S. dealer stocks to a more manageable 80 day supply by the end of April, down from a peak of 125 days' in January," said Carlos Gomes, Scotiabank auto industry specialist.

Interesting to quote a bank representative, isn’t it? I know he isn’t personally responsible for this gigantic mess-this automobile manufacturing bailout. But it is clear, bankers, particularly in the US but certainly all over the planet, helped create the biggest bubble in credit, the world has ever seen. False profits in the financial sector rocketed up and gigantic bonuses were paid out on paper profits. And naïve, trusting, ordinary people all over this continent and the world have paid the price—pensions destroyed and retirement plans shelved. Greed overtook business sense. But the bubble bus and became a big black hole. The house of cards in the financial and real estate sectors had to fall and the consequences of terribly greedy bankers and equally inept or corrupt government overseers have created one of the worst financial disasters ever.

Resilience and compassion
But nobody should count out the creativity, guts and resilience of the car dealer entrepreneurs. They have weathered economic disasters before and came out strong. Yes there will be dealership causalities, in all makes unfortunately, totally beyond their control. They didn’t create the problem but they are paying the price.
Without a doubt we all feel pain for the quality dealers who invested and worked their butts off to create viable, profitable business and substantial employment in their communities. Car dealers not only are major employers in every city, town and village, but they are also the major community supporters for hospital, sports teams, charity drives. Car dealers make a significant difference in their communities. It is a shame to see the rug pulled out from under them by the banks and corporate bunglers.

Thousands of dealership retail staff will be looking for work. Some 310 dealers now selling GM cars will be asked to shut their doors permanently in community’s coast to coast—over 12,000 jobs will be lost. GM Canada spokesman Stew Low declined to provide specifics on how the cuts will be made. There will be similar dealer losses in Chrysler.

I am not sure how the politicians on either side of the border can square this result with their stated goal of increasing employment to return the country to prosperity. These good paying, middle class jobs in the retail auto sector are going to be hard to replace.

Things will get better…sooner.
It is not all doom and gloom for vehicle production employees, considering Canada will remain a critical source of vehicles for North America, said Ray Young, GM's chief financial officer. He noted that of six new vehicles being launched this year on the continent, three are built in its Ontario plants including the new Chevrolet Camaro. Ford is building world class vehicles people want to buy and they are rebounding big-time in the retail business. The so called imports, although that is not a valid definition anymore, are committed to building quality vehicles in Canada and United States. They are having a positive impact on both economies.

Like it or not General Motors has to achieve this brutal downsizing. It has to get lean and mean enough to make a profit in a marketplace in which all automakers combined are only selling 10 million vehicles annually, the current trending for 2009. Imagine, in 2008 North America produced and sold 16 million vehicles. But bigger sales volumes will come back within two years.

There is a deep disappointment regarding the demise of Pontiac. This Pontiac franchise has been successful in Canada for a long time. The dealers are clearly competitive in most model sectors and well complimented with Buick and GMC. This is another example when wrong headed thinking at the corporation level did not encourage this wining combination in the United States.

But don’t count the GM and Chrysler dealers down for the count in this next round. I believe the import dealers are doing terrific and will continue to do so. But they had to learn to compete against the big three and compete they did. The domestic dealers are ready for the race too.

Bottom-line
I believe there will be a vibrant, exciting and highly profitable retail car business for all dealers, all makes. It will only get better. The vehicle quality is great, the designs are dynamite and the consumers will be the winners along with their retailers.
As a Ford dealer before I founded Automotivator Professional Development I am proud to be a member of this group of motivated and enterprising people. It will be the dealers who take the manufacturers out of this recession, that you can count on. Yes this too shall pass.

“Sources are Nicolas Van Praet, Financial Post , Jeff Kowalsky Bloomberg News, Paul Waldie and Greg Keenan, The Globe and Mail”

Dave Kemp, the Automotivator, is President of Automotivator Professional Development and Trackstar International Follow-up Systems. Dave, a car industry expert who focuses on improving the sales process for dealers and manufacturers with great results. Contact info. http://www.automotivator.com/ Email Dave@Automotivator.com 1-800-668-0362

Trackstar—Turning Your Walk-outs into Customers and Keeping Your Customers for Life!
Get the Facts - Check the Trackstar system out-- view this short video.
Trackstar is easy to install, uncomplicated to use, and the best follow-up system available in the car business. Many others out there make clerks out of your salespeople …and still don’t work. Trackstar is designed by successful car people, for successful car people. 1-800-668-0362 Dave@Trackstar.ca http://www.trackstar.ca/
Definitely the best Hot Prospect and Client Retention system in North America.

Monday, April 6, 2009

Call to Action

DEALERS AND MANAGEMENT REPORT
A challenging perspective

Dave Kemp, the Automotivator

Provide the taxpayer's money to the taxpayer to buy vehicles to kick start the factories.

The world wide automobile industry needs immediate stimulus but not the factory bail out type of stimulus. There is a very quick and positive solution to our economic problem that will impact on every part of the economy, not just the retail car industry.
We need to provide the taxpayer's money to the taxpayer to buy vehicles to kick start the factories. There is no value to providing taxpayers money to idle, unproducing manufacturing plants. It is a fact that the automobile industry drives the economy in most countries of the world. The employment and resulting payroll is more valuable to the economy than any single sector of our financial system.
We need to create demand now and the supply problem will vanish. The retail dealers need to create real pressure on the USA and Canadian governments and across the world in G20 countries to make major cash incentives available directly to the buyer not the manufacturer.
The financial sector caused this downfall. It was caused by greed, and unethical mortgage practices made worse by complicated, mismanaged credit and inept corporate financial leadership.
For sure it is necessary for auto manufacturers to right their ships and improve profitability by decisive and essential actions but they won’t cause buyers to go into the marketplace.
Don’t be mislead by left leaning media. This is not a ‘made in North America’ problem. All manufacturers, from Asia to Europe have been impacted by this melt down.
President Obama says the nation “cannot make the survival of our auto industry dependent on an unending flow of tax dollars.” I agree. But we sure as heck can’t have him, a guy who has never really worked for a living in a business environment acting as defacto CEO of our automobile business.
Make no mistake about this—if Obama gets traction in this auto business it will be incredibly disastrous for the entire population. Can you even imagine the possibly—Government mandated vehicle design and distribution channels?
This can’t be just a token amount of cash incentive. It has to be a major impact incentive to the retail buyer. It has to explode the lethargy and fear factors of millions of buyers needing vehicles. The goal is to jolt the potential buyers to buy now. Money talks.
We have virtually millions of owners driving vehicles four to 10 years old that need to be replaced. Vehicles that desperately need to be replaced in the best interests of the owners. These vehicles are inefficient, lack safety advantages and most definitely not meeting the current needs of their families.
The Facts
 In Canada alone over 6,000,000 people bought vehicles 4, 5, 6 and 7 years ago.
 These old cars and trucks don’t meet the owner’s needs anymore.
 People are postponing buying to their detriment in your town and this country every day, week and month.
 Most potential buyers have good jobs, steady employment and available credit.
 Thousands of people in your community need to get out of vehicles that are paid off or nearly paid off. Why?
 The average repair bill to keep their vehicles safe and running is too costly—over $2000.
 The fact is, these vehicles need and are ready to be traded.

We need to create significant motivation to overcome fear, lethargy and indifference in an uncertain public now! We need to create credit availability and financial incentives that drive the buyers into the showrooms now.
The resulting demand for vehicles will have a huge impact on the parts manufacturers and vehicle makers. It will immediately stimulate employment. Income earning workers will drive the economy out of this mess.
But it will be the entrepreneurial car dealers, motivated and effective sales leaders and quality sales professionals who will ultimately deliver the country out of this mess.
Don't leave this to someone else. Take the personal responsibility today, right now, to connect strongly with your elected officials to get this done. Especially don't leave this to the government bureaucracy! They are going to screw this up. Giving money to the non-producing companies is insane. Create vehicle demand and you solve the manufacturer’s problem and the world wide problems. It will also cost far less than a bailout. I am calling and contacting my Member of Parliament and provincial representatives today. Let’s all act together. Today!

Dave Kemp, the Automotivator, is President of Automotivator Professional Development and Trackstar International Follow-up Systems. Dave, a car industry expert who focuses on improving the sales process for dealers and manufacturers with great results. Contact info. www.Automotivator.com Email Dave@Automotivator.com 1-800-668-0362

Trackstar—Turning Your Walk-outs into Customers and Keeping Your Customers for Life!
Get the Facts - Check the Trackstar system out-- view this short video.
Trackstar is easy to install, uncomplicated to use, and the best follow-up system available in the car business. Many others out there make clerks out of your salespeople …and still don’t work. Trackstar is designed by successful car people, for successful car people. 1-800-668-0362 Dave@Trackstar.ca WWW.Trackstar.ca
Definitely the best Hot Prospect and Client Retention system in North America.

Monday, February 9, 2009

Make More Money Action Plan for 2009

The Automotivator Sales Training Bulletin for Sales Consultants, Car Dealers, Managers, Team Leaders.

ACTION TIME

Action #1. I can and will sell vehicles successfully in this economy but…I can’t continue to sell the same way I did in the past.

Right now you have time to make ‘09 successful—prepare to execute new, sales focused ideas that payoff! One of the most important things I have ever learned, no matter what the challenge; you have to come to work to work. But also have FUN! Play when you should... work when you should. Water cooler parties and listening to another guy’s negative reasons for not achieving sales only drain your brain. (Check out my exceptional suggestion for serious sales professionals at the bottom of the page.)

#2. Give yourself a goal. What are you targeting to make this year? Put in writing your 09 annual income—then break it out into months. Take your monthly income goals and break it out into weekly chunks—then daily chunks. Determine how much a day you need to make to achieve your required income.
Nobody has ever arrived at their destination without a goal.
#3. Manage Your Personal Performance. Your daily earnings is what drives your sales building activities. Your sales performance is based on your appointments! On shift and off shift you really need to manage your own schedule for sales performance. You are in business for self and so act like the CEO of your company because you are. Your motivation to manage your business building activities determines your success.
#4. Set effective business building actions. Your income and sales success will come from these activities.
Walk-in traffic sales - be-back sales - repeat sales - referral sales - orphan customer sales – phone up sales – service and personal prospecting sales - internet sales
Determine where most of your sales are coming from and target improvement in each area. Success comes when you target high closing ratio activities. You can achieve 35 – 50% closing ratios in these specific areas - be-back sales - repeat sales - referral sales - orphan customer sales.
#5. Your sales stats count. How many sales are you going to make from first time walk-ins? How many sales from be-backs are you going to make? How many repeat sales to past owners are you targeting? How many referral sales are you going to make this year? Commit to follow-up of walk-outs and your sales will increase dramatically. Commit to client retention and you will become much wealthier this year. Follow-up and client retention is where the money is in the car business.
#6. Hold your self accountable. Review your sales activity stats each week . It is all about appointments you are setting up from all sources. You will know immediately if you are on pace to reach your goals and decide what to do about them if you are not. Meet with your sales team leader every two days to get encouragement and ideas that will keep you on track.
#7. Take Action.
Despite this economy you have people who are going to be entering the buying cycle each month. There are people in your community who can’t afford to wait! They are driving vehicles 4, 5, 6 and 7 years old. These vehicles need to be replaced. They are giving huge aggravation, need costly repairs and don’t meet their family’s needs any more—heck the vehicle stayed the same and their children are much bigger now. Give them a reason to buy from you and you have them.
#8.
Focus.
You can’t sit back and let the customers roll in. Come to work everyday with the intention of getting at least one appointment. Focus on what it takes to get an appointment each day and you will make serious money. Your service department is a good source of buyers. Your sales calls are from people at the end of their buyer’s cycle. Take them seriously and you will have arrived at some good sales. Track and target people who walk-in to the dealership once and follow-up like crazy this current ‘hot prospect’ list. Put every prospect that walks-out into your follow-up system. You will have a steady source of ready buyers to prime the sales pump, everyday.
#9. Take Risks.
Don’t stay in the same old rut. You have the ability to achieve more sales than you are. But you have to be willing to make a commitment to some daily sales activities that pay off. Make just a few more calls to hot prospects that you are following up. Get the work and cell phone numbers so that you can contact these motivated buyers. You are not bugging them. You are showing genuine interest and that is how they feel about it too. (You should check out Trackstar if you are not getting sales results. Here are the features, click) http://www.trackstar.ca/trackstar/features.html
#10.
Don’t give up too soon.
One more call to a prospect, one more letter, one more contact and you will see tremendous sales results. Everyone who succeeds in sports knows the second effort is what puts the puck in the net or the ball over the line.

Automotivator Action Plan
What is your goal for sales and earnings for this 2009 year?
 Is it in writing? Better be or it is no value to you.
 Look at it often.
 Take Professional Development! If you are a better sales Professional this year, you will make more money, but if you aren’t…… you won’t. (You should attend the Automotivator Professional Development workshops).
 Break down your sales targets by the month, week and day.
 Make follow-up a profit-centre for you.
 Give yourself a daily appointment objective and you WILL hit your sales and earnings goal.
Remember, the trip of a 1000 miles starts with the first step.

Join my exclusive KICK IN THE BUTT CLUB! If you are serious about achieving your sale goals and income targets this year, take action! Join my new “Kick in the Butt Club”. Get motivated and receive proven sales initiatives that will help you achieve your goals when you need a kick in the butt! I need your name, phone number, dealership and vehicles you sell. Put in the subject line “Kick in the Butt Club My email is Dave@Automotivator.com I only want to spend my time with sales professionals who really want to succeed. Don’t join if you are not serious!

It's time to THINK BIG, PLAN BIG and then WORK YOUR PLAN!

Great Success,
Dave.
Dave Kemp, the AUTOMOTIVATOR. www.Automotivator.com www.Trackstar.ca
Dedicated to improving the buying experience in the nation’s showrooms

Increase Sales - Just ASK!

The Automotivator Sales Training Bulletin for Car Dealers, Managers, Team Leaders and Sales Consultants.

Get the sales monkey off your back.
Just Ask!

If you want to make more sales…give your customer what they need—help making the decision. They appreciate it. Most sales people do not get what they want—a sale. Most customers do not get what they want—a new vehicle! Why? Because the sales consultant didn’t do his/her job? Your job?
To ask your customer to buy. One of the simplest rules to increase YOUR sales is to just ASK. As a Professional Development Sales Coach for over 20 years, I have observed thousands of salespeople in sales situations who fail to ask for their customer to buy a vehicle today.
Now, I believe in making sure you earn the right to ask the customer to purchase, before you invite someone to buy. But I also believe in asking for a prospect to buy every time. Customers come to your dealership at the end of their decision making process or buying cycle. They only come when they are ready! Your customer is motivated to buy what you sell or they wouldn’t come to your dealership.

More customers are prepared to buy than sales people are prepared to sell.
That’s right. We blow it because we don’t ask. It doesn’t mean you will always get the sale, but you have nothing to lose by asking. Think of how many customers may have said “Yes” if you had asked? OK, what is holding you back? Is it because:
1. You might be rejected?
2. Someone will think you are pushy?
3. You are afraid to?
4. The sale isn’t likely?
5. You don’t really want a sale because last night you won the lottery? Any of these apply to you? Quit monkeying around. Check out this website www.Automotivator.com

AUTOMOTIVATOR KEYS TO SUCCESS - Ask yourself: “What is the worst that could happen if I invite my prospect to make a decision to buy?”
They might say ‘NO’. Wouldn’t that be alright? If you ask, they might even tell you why they are hesitating to buy right now. Then you can give a positive reason to buy now, rather than later, and then they might say, “Let’s get this done”.
Your customers will be delighted because their problem is solved. They have what they came to get—a new vehicle. You have what you came to get—a new customer.
Too many salespeople just wait and hope the customer will make the buying decision themselves. They just quit without asking the question. Don’t be a defeatist.
The secret to increased sales is simple. Give a reason to buy and then ask them to buy. You won’t get a “yes” every time you ask - it isn’t that kind of world - but I’ll bet you should be asking more, right?!! You have nothing to lose and everything to gain.
This week's action hint: Ask your customer to buy more often. You may be surprised with the result!
This week's affirmation: I am worthy of more sales and commissions in my life. All I have to do is ‘Ask’.
Have a great selling day! Dave.
Dave Kemp, the Automotivator, The Automobile Sales Coach.
Dave@automotivator.com http://www.automotivator.com/ Call - 1-800-668-0326
Dedicated to improving the buying experience in the nation’s showrooms.