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Too much risk and effort for too little pay and time?

"THE WINDS OF CHANGE ARE UPON US"

C'mon Guys...Lets face it! This is the CAR BUSINESS! The only thing thats constant IS CHANGE! Our industry goes through cycles. You need to be ready for them. You know regardless of whats happening in the economy...you need to ration money made during Spring/Summer/Fall for the typically "not as busy" Winter months.

There will always be a new tool for analytical customers to help weigh their options, and use as leverage while negotiating their best deal, whether it be the Consumer Reports of the 1980's, good old pac bell (yes, remember "PHONE POPS"- practically obsolete) or the World Wide Web of today! (Always something for the "OLD CAR DINOSAURS" to complain about) Same information available to the consumer, just a new delivery system! It still comes down to Salesmanship! (Sorry! I know you didn't want to hear that!)

Building value in the vehicle. Using all your knowledge of the product and it's availablity. Knowing your competition. Is it a limited production vehicle? How many of this color or model are in the region (or in existence for that matter?) Regardless of any new tools that have come along in my 24 years in the business The GAME is pretty much still the SAME! Just get the customer in the door! That's right! Okay there's one thing! Can you believe it? I actually found ONE THING that hasn't changed in the car business! GET THE CUSTOMER IN THE DOOR! I'm having an epiphany! Wow!

Honestly, in an industry where we as consumers can purchase the same product for the same price just down the road it truly is the people (and the exceptional service we provide) that sets our industry apart! And the fact is you really do need to be exceptional to get the business right now.

I cannot tell you how many times I have walked into a store intending to purchase a big ticket item, only to have walked out without purchasing, because of the salesperson! By the same token...I've inadvertently walked into a store and walked out with a BIG TICKET item, (never intending to buy a thing) Again... all because of the Saleperson!

The fact of the matter is, I still love this business like I did the very first day I got in it. I am grateful for the opportunities it has provided to me and my family. I speak to people everyday who jumped out of the business and are trying to get back in! I have to tell ex Managers you're starting back on the Sales Floor! Lets just say that doesn't go over well.

The bottom line is if you are not passionate about the Car Business you simply should not be in it. Yes, we have shifts in our income due to the economy. What industry doesn't? I've learned over the last 24 years to roll with the punches and remember the only thing that is constant in our business is change! I realize every day how lucky I am to make the kind of income I do! Even when I am the very last person to leave the dealership after the final deal is contracted and I still have to eat dinner...There is always somebody working even later serving me my dinner or checking me outat the Grocery Store!!! So I guess it could always be a lot worse! Let's face it, how many people without a formal education can say they make $50,000-$150,000 annually? Plus as an added bonus, have as much fun as we all do? ;)

Diane Uzelac
www.QueenofCars.net
www.DealerClassified.com

Too much risk and effort for too little pay and time?

"THE WINDS OF CHANGE ARE UPON US"

C'mon Guys...Lets face it! This is the CAR BUSINESS! The only thing thats constant IS CHANGE! Our industry goes through cycles. You need to be ready for them. You know regardless of whats happening in the economy...you need to ration money made during Spring/Summer/Fall for the typically "not as busy" Winter months.

There will always be a new tool for analytical customers to help weigh their options, and use as leverage while negotiating their best deal, whether it be the Consumer Reports of the 1980's, good old pac bell (yes, remember "PHONE POPS"- practically obsolete) or the World Wide Web of today! (Always something for the "OLD CAR DINOSAURS" to complain about) Same information available to the consumer, just a new delivery system! It still comes down to Salesmanship! (Sorry! I know you didn't want to hear that!)

Building value in the vehicle. Using all your knowledge of the product and it's availablity. Knowing your competition. Is it a limited production vehicle? How many of this color or model are in the region (or in existence for that matter?) Regardless of any new tools that have come along in my 24 years in the business The GAME is pretty much still the SAME! Just get the customer in the door! That's right! Okay there's one thing! Can you believe it? I actually found ONE THING that hasn't changed in the car business! GET THE CUSTOMER IN THE DOOR! I'm having an epiphany! Wow!

Honestly, in an industry where we as consumers can purchase the same product for the same price just down the road it truly is the people (and the exceptional service we provide) that sets our industry apart! And the fact is you really do need to be exceptional to get the business right now.

I cannot tell you how many times I have walked into a store intending to purchase a big ticket item, only to have walked out without purchasing, because of the salesperson! By the same token...I've inadvertently walked into a store and walked out with a BIG TICKET item, (never intending to buy a thing) Again... all because of the Saleperson!

The fact of the matter is, I still love this business like I did the very first day I got in it. I am grateful for the opportunities it has provided to me and my family. I speak to people everyday who jumped out of the business and are trying to get back in! I have to tell ex Managers you're starting back on the Sales Floor! Lets just say that doesn't go over well.

The bottom line is if you are not passionate about the Car Business you simply should not be in it. Yes, we have shifts in our income due to the economy. What industry doesn't? I've learned over the last 24 years to roll with the punches and remember the only thing that is constant in our business is change! I realize every day how lucky I am to make the kind of income I do! Even when I am the very last person to leave the dealership after the final deal is contracted and I still have to eat dinner...There is always somebody working even later serving me my dinner or checking me outat the Grocery Store!!! So I guess it could always be a lot worse! Let's face it, how many people without a formal education can say they make $50,000-$150,000 annually? Plus as an added bonus, have as much fun as we all do? ;)

Diane Uzelac
www.QueenofCars.net
www.DealerClassified.com

Too much risk and effort for too little pay and time?

"THE WINDS OF CHANGE ARE UPON US"

C'mon Guys...Lets face it! This is the CAR BUSINESS! The only thing thats constant IS CHANGE! Our industry goes through cycles. You need to be ready for them. You know regardless of whats happening in the economy...you need to ration money made during Spring/Summer/Fall for the typically "not as busy" Winter months.

There will always be a new tool for analytical customers to help weigh their options, and use as leverage while negotiating their best deal, whether it be the Consumer Reports of the 1980's, good old pac bell (yes, remember "PHONE POPS"- practically obsolete) or the World Wide Web of today! (Always something for the "OLD CAR DINOSAURS" to complain about) Same information available to the consumer, just a new delivery system! It still comes down to Salesmanship! (Sorry! I know you didn't want to hear that!)

Building value in the vehicle. Using all your knowledge of the product and it's availablity. Knowing your competition. Is it a limited production vehicle? How many of this color or model are in the region (or in existence for that matter?) Regardless of any new tools that have come along in my 24 years in the business The GAME is pretty much still the SAME! Just get the customer in the door! That's right! Okay there's one thing! Can you believe it? I actually found ONE THING that hasn't changed in the car business! GET THE CUSTOMER IN THE DOOR! I'm having an epiphany! Wow!

Honestly, in an industry where we as consumers can purchase the same product for the same price just down the road it truly is the people (and the exceptional service we provide) that sets our industry apart! And the fact is you really do need to be exceptional to get the business right now.

I cannot tell you how many times I have walked into a store intending to purchase a big ticket item, only to have walked out without purchasing, because of the salesperson! By the same token...I've inadvertently walked into a store and walked out with a BIG TICKET item, (never intending to buy a thing) Again... all because of the Saleperson!

The fact of the matter is, I still love this business like I did the very first day I got in it. I am grateful for the opportunities it has provided to me and my family. I speak to people everyday who jumped out of the business and are trying to get back in! I have to tell ex Managers you're starting back on the Sales Floor! Lets just say that doesn't go over well.

The bottom line is if you are not passionate about the Car Business you simply should not be in it. Yes, we have shifts in our income due to the economy. What industry doesn't? I've learned over the last 24 years to roll with the punches and remember the only thing that is constant in our business is change! I realize every day how lucky I am to make the kind of income I do! Even when I am the very last person to leave the dealership after the final deal is contracted and I still have to eat dinner...There is always somebody working even later serving me my dinner or checking me outat the Grocery Store!!! So I guess it could always be a lot worse! Let's face it, how many people without a formal education can say they make $50,000-$150,000 annually? Plus as an added bonus, have as much fun as we all do? ;)

Diane Uzelac
www.QueenofCars.net
www.DealerClassified.com

Too much risk and effort for too little pay and time?

Looks as if there is alot of desertion going on in the industry from lack of rations & effective battle strategy. Granted battle maps & the frontline changes constantly but I have a feeling many are being sent to the frontlines with weapons but not enough leadership buy in to win the battle, either that or it's plain old cut & run budget strategy and dealerships are willing to just have a replacement soldier pick up the weapon of the dead soldier on the field and keep on marching.

Too much risk and effort for too little pay and time?

Joe-

Your last post is pretty spot-on, but I will add a caveat. The soldier is the first to notice a change in TACTICS of the enemy, while a General (hopefully) will notice a change in STRATEGY of the enemy.

The unfortunate difference between a soldier and General and the sales person and GM, the latter is typically more concerned about his bottom line and maximizing HIS paycheck rather than caring for his "troops".

As a former leader in the Army, I always made sure my guys got fed and paid before me. Where is that attitude in our business? And these GMs wonder why CSI and retention is so difficult. Do you really think the average GM is able (willing) to see and make changes? I don't!

Too much risk and effort for too little pay and time?

The winds of change are upon us...

I ask this question.
Who is the 1st to know if the battle is changing? The Soldier on the line or the General? The Soldier. The General's job is to review & challenge existing battle strategy to put his Soldier into winning situations. This way, the General keeps his men from getting slaughtered and abandoning camp.

Sound all too familliar?
Any Gerneral worth his salt would see the defections and realize the game is changing. This industry is smack dab in the midst of a revolution and the proof is in this thread.

Joe

Too much risk and effort for too little pay and time?

Alot of honesty in Pete's remarks. I'm convinced the automotive sales business has driven away many quality people, the turnover is substantial for a reason. I'll venture a guess that most ISM's leave the business for too much effort & hours and not enough compensation. I know of more veteran people in the business looking to get out of it now than ever before and I've been involved w/it for 12 years.

Too much risk and effort for too little pay and time?

Hello to all.

Great comments and insight.

Thanks for not having the knee jerk reaction that usually follows when talking about pay plans and money of "go sell some more cars if you want to make more money".

Dealers I feel would like to maintain a stable and familiar faced sales force but again is it not asking much if you give nothing but the immediate $$$ for someone to stick around for what 2-3 years for a repeat sale?

Ya sure networking I know but be real if you will. When is the last time a customer gave you their friends and neighbors info to see if the "want to buy a car"? Who are you! Click...

The person that took their book of contacts and got into another industry that pays an residual for managing customers portfolios with an opportunity for growth and are no minis in that business.

Selling vehicles is a point of sale business so every time I see ads for recent grads welcome with an opportunity to earn up to a 100k automatically know that most likely that is a high turn over dealership with a crappy pay plan.

I remember as a GSM the GM telling me to implement a new sales initiative for sales people to cold called previous owners that might be interested in trading their cars for a new one.

Not without paying them was my response. After the first 30 days I was fired and blamed that I wasn't managing correctly and that was why truly nothing was sold except for the ones that where "fresh up/marked sold" to be shown as such. Funny enough in 90 days 12 of 16 salespeople quit.

I have seen this same archaic plan used with business development centers with the same result...turnover.

Lao, I agree it is about the right person but differ a bit on the who. Tasking to an under link in which the position has no authority is what I feel is what needs to change.

If I owned a dealership(never wanted to or pursued) the ISM would be second in command just under the owner or GM. Otherwise the ISM is for the most part a babysitter with the UC or NC manger the angry parent.

So all the analytics and pie charts that the ISM produces are worthless and a waste of time and just keep the UC and NC a tool to defend their positions and bus drive to cast blame of the powerless to change...the ISM.

Anybody ever seen that one?

(Apologize for any bad grammar in advance because I do not review when I post)

The best to all,

Pete-Chicago

Too much risk and effort for too little pay and time?

"...Pay plans are lower and the front margin has been put into the "do not talk about" holdback"

Nobody has addressed this and it's really the truth. I often wonder if being a "floor" sales person would be just as financially rewarding with a well advertisied popular brand considering the "maybe" internet lead voumes worked vs the "serious" walk in.

Too much risk and effort for too little pay and time?

Based on my experience just outside the Chicago market-

Dealerships in general don't take the time to properly train an ISM/BDC rep on product knowledge or CRM usage, and have little or no internet process in place for an internet/bdc dept to take hold. Why? Because most management/owners have never taken a customer from lead to sale via internet themselves. That is not what made them successful.

For an ISM/BDC to be successful there must a clear, concise process (aka Road to the Sale in the showroom) starting with buy-in from management top to bottom so the dept can be streamlined to handle the constant bombardment of incoming leads and phone calls properly, per dealership protocol.

I still see the classified ads for ISM's as if they were hiring showroom sales reps, with the qualification of computer usage, advertising absurd, "possible" yearly incomes.

Dealerships know where consumers are finding their vehicles, understand the importance of a quality ISM/BDC dept, hear the stories of other dealerships selling 30, 40, 60 a month from the internet dept, but dont have a clue on how to get there.

As others wrote above... This a great day in the automotive market to be inventive! Great story Lao!

Too much risk and effort for too little pay and time?

Lao,
Spot on and well said. Opportunity knocks on the door of those who are willing to listen.

Pete,
Alex is right. Technology does not replace the people and too often us technologists build something that doesn't mesh with how it's really done. It's our job to listen and be guided by the practitioners so that we not only service or customers to the best of our ability but we learn from the aggregate insight of the front-line.

Worst thing that can happen that way is we have happy customers and an ever-evolving service.

Too much risk and effort for too little pay and time?

Pete,

Maybe I'm optimistic, but I believe the industry isn't as ignorant to the new marketing endeavors as it used to be. There are still many cases to back what you're thinking, but they weaken daily. CRM systems do not replace people - they are another technology to help manage process. Unfortunately, most businesses let their CRM systems dictate the process, and I think this is where you are coming from. It is just a matter of understanding what your CRM is for and tasking the right person to make it happen.....not that so-so guy who will work for less.

Lao -

Absolutely! However, when one window shuts, I think 500 open today! It is such an amazing time to be in the positions we're in - this is the Wild West of Internet/technology.....enjoy every minute of it!

Too much risk and effort for too little pay and time?

The number of U.S. dealerships dropped from about 45,000 in the late 40's to some 22,000 in 2000.The last 8 years have shown even more change and yet more vehicles are being sold…..

Back in the "Good ole Days" many car sales professionals had perks, salaries and demos. It was a happy feeling then, times were good and people were fat and happy and the living was easy. OEM's splurged and courted the dealers, gave bonuses and gifts, free trips and other "goodies" so everyone could feel good and sell, sell, sell. There were mostly US Brands with a few European Brands that catered to a small niche market.

Then the cursed foreign OEM's moved in and began upsetting the happiness and the car rental agencies decided to crash the party, then the Internet came into a reality that the dealers had to face, more cars being sold how come I am making less and suddenly many people wanted to know hey, "someone moved my cheese"

In free market economies change happens and the professionals that acknowledge and embrace the change are the likely survivors and succeed.

I remember meeting a professional in Japan a couple of years ago at the Tokyo Car Show. I have not seen him for 6-7 years. He had become a "Ronin" or a " Samurai with out a Master"

He was well connected, his "smart world phone/PDA", a laptop with wireless connection and he was active. I was a bit surprised as I always thought he was behind the times with regard to technology and he admitted he was until one day he saw the light.

Years of working in various west coast dealerships he had built up quite a list of clients in his little black data book which he always kept up and current. Many people laughed and joked he should have been a CPA or something. Management did not seem to care that he kept his data book as long as he sold cars.

Eventually this list was quite extensive and one day his high school daughter said Dad let me put this information in an Excel program for you and show you how to work with it. Well he did and the rest was history as he could see the benefits right away.

He left the dealership day-to-day business and became a successful broker. His clients trust and respect his advice. He stays connected with his clients. He sends newsy email updates on his travels and what he and the family are doing. He knows where and who to contact to get the best price for his clients, he knows the rebates and incentive programs that are available. He services his clients, they trust him.

I met this lady from Texas, Dallas area, who went from dealer to dealer and took their cars on consignment; she placed them on ebay and Craig's List. She was selling 6-10 cars a week, a one-person operation.

They say that a window closes and another opens. There have been many changes in the industry over the years and there will be many more to come.

AutoUSA Study Finds Accuracy of Information in 3rd Party Leads Keeps Dealers Satisfied

I second the "uh duh" Jeff. AutoUSA doesn't need to have studies conducted (though I applaud the focus on empirical research) to convince dealers that lead quality is an important issue.

Accurate and complete consumer data must be the lead providers priority. It should be tied into what generated the lead. Authenticity in offering something of value in exchange for said consumer data still needs to be of focus and more widely practiced.

On the flip though, there are many providers out there that will do whatever is necessary to generate a lead for sale. There quality is definitely an issue, but they are quickly identified when you have the right software in place.

All too often dealers do not have the right software. So the question is who's watching the dealers back?

AutoUSA Study Finds Accuracy of Information in 3rd Party Leads Keeps Dealers Satisfied

The only way to be sure you are not paying for duplicate leads is to audit and reconcile the monthly statement. When you see a duplicate lead you just do not pay it. The reputable lead providers do not expect you to pay for duplicate leads as long as you are able to verify.

I think most dealers will agree the most quality leads they receive and the leads with the highest conversion to sales success are from the OEM’s.

Now if we can get the OEM's to budget more of their advertising budgets to the web, add more creativity to their promotions and stream line their pricing strategy and finance specials we will all be happier.

The Internet is really where consumers learn more in-depth information so that focusing more of their efforts online will have the greater impact for sales.

Toyota and Lexus as well as a number of other OEM’s are learning this. Both have been shifting money away from cable /TV buys and production of commercials to the Internet as a way to narrowcast even further than is possible through traditional media channels. The nice thing as they are discovering ways to make the process interactive which will be a dynamic addition to the process once it is perfected.

Running a commercial on traditional media costs money every time it is run; on the web the more you run the commercial the more ROI you receive on the investment. 75 to 80 percent of luxury car shoppers use the Internet in the research phase of their shopping process and more and more have made their decision before they come in.

WIN a free trip to the 2008 Synergy Sessions in New Orleans!

WOW! What a information packed couple of days! Just back from Synergy Sessions in New Orleans and I will be posting a recap of all the events in the next few days (excluding the V.I.P. party) because of the non disclosure agreement :) Great seeing everyone and putting some faces with names. Sean and Jeff were great hosts! I have also heard a rumor about some possible video footage from the V.I.P. event.....stay tuned!

WIN a free trip to the 2008 Synergy Sessions in New Orleans!

thanks guys! Really looking forward to the trip! Hope to bring back some great ideas and "SYNERGY" that will help take our Dealership to the next level, maybe I will be promoted by Ralph P. from yellow Belt status as I strive to reach for that "Ninja level" in Digital marketing management :)

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