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Remember my friends, that the CUSTOMER, not the car, is the Star of this show!  

 What show may that be …?  

 “This Is Your Business” 

starring ___________ (your name goes in the blank) with today’s guest STAR appearance of ______________ (your client’s name goes in this blank – all in caps!).  

Dance, as most of you well know requires rhythm and steps.  

Are we going to Salsa / Waltz / Cha-Cha / Quick-Step / Ballet / FreeStyle? What if your Guest Star has what appears to have 2 left feet? No sense of rhythm, no idea of the steps, much less the order they go in.  

That is where we as the seasoned professional lead our partners (customers) across the dance floor. 

It’s very simple if you think about it. A Star is in front of us – they really want to do well at this – their “fans” will be watching (family/friends/coworkers). They are willing to take instructions as long as they think it will benefit them and make them look good (remember that point).  

They burst onto our lot ready to do the Cha-Cha (fasted paced dance) – they want to get in and out, as quickly as humanly possible.  

We, on the other hand, KNOW this is a Waltz (slower-paced) and must begin the process of leading our dance partner. The sale of the unit is not the goal – a happy enthusiastic fan is. 

Customers pay the bills – FANS build rapid profit.  

We slow our dance partner down by using questions.  

• Will you be the primary driver? – who is the vehicle for?  
• Will you be paying cash? (effects pricing and the next few steps of the Dance).  
• Will you be trading in your current vehicle? (is the customer upside down on their trade – effects LOAN).  
• What will you be using your new vehicle for? (pizza delivery guy ain’t driving a Yukon at 9 mpg – zero in on the unit. 
• What did you NOT like about your last or current vehicle? (hot buttons and closing keys here ladies and gentlemen).  
• What do you really like about your current vehicle? (why are they looking to buy.)  

Small hint – if they ask for credit or say they don’t know what their credit is like… it is usually a sign they have weak credit at best!  

Weak credit is going to affect the dance in a major way! If your customer struggles to get financing, it’s kind of like dancing with NO music. It can be done … just not as satisfying! Will they need a cosigner? More down? Less vehicle? ALL the above?? This is the part of the dance most dealers hate, and customers dread. They Cha-Cha in looking at that 2017 Land Rover (Champagne) and Quick-Step out in a 2014 Sante Fe (soda pop).  

So how do we get them away from the Champagne and over to the soda pop? Easy – show them the steps.   

The Star wants the perfect car for less than wholesale. Been there conquered that – that’s now a familiar rhythm of the dance.  

So just HOW do you get your shy little STAR through this dance?  

“So, Mr./Mrs. Jones, here lately we have helped a lot of folks find great financing, regardless of credit challenges they THOUGHT would stop them. Since you said you’ll be looking to finance your new _________ (vehicle they’re looking at), I’m going to need your help in this process.  

I can use your help by your filling out all of the basic required information and your guidance as far as your financial boundaries when it comes to payments, duration of the loan, and down payment. While I may be well versed in assisting clients getting loans, I feel it my obligation to make sure you get the best loan possible for you. Bear in mind I simply facilitate this process, so remember I’m here working on your behalf and can always use the assistance.” 

Or something to that effect.   

If you cannot hang the paper – no sale! So WHY wait till almost the END of the sales process to do the most important part? Lead the dance and get to the PAYMENT part sooner rather than later. It will always be a matter of educating your Star of the proper steps, rhythms, and nuisances of the dance. We’re the PROFESSIONAL and have had far more experience buying, selling and financing vehicles. Asking for their help and asking the right questions in the process right up front may seem a little awkward at first. Get used to it as more sales, better sales, and higher gross depend on how well you lead the STAR in this dance. The more you involve the STAR in every part of the process, the more you learn if your dance partner is a novice or is a competitor ready to dance and ready to win. 

Create a great day,  

Tom  

Engineers know the shortest distance through a curve is a straight line. If the old road is a series of “S” curves, then the new one will chop through those curves, straight as an arrow (shortest distance). 

Granted, it may not always be the least expensive option; In the beginning, more planning and construction costs are decidedly more. However, in the long run, when maintenance is done and length of service is factored in, the straight line (road) WILL be the most cost-effective and move MORE traffic in a quicker, safer manner!

The “curves” we experience are the Feast & Famine cycles this industry is notorious for. YOUR straight line through the curves is very simple. Just like the analogy above though, it too will incur a substantially higher initial investment of both capital and TIME. 

Policies & Procedures is the name of the line to follow! – Through WRITTEN policies and procedures, we “short-cut” our way across both the famine and feast cycles (curves) this business has. 

By now, most of you are rolling your eyes and saying, “Yeah right”. 

Well my friends, after sitting in council with over 1700 dealers across this state in the last 13 years – here are the FACTS: 

• Dealers that consecutively sell 25+ units per month ALL have policies and procedure manuals in place. 
• It is all spelled out step-by-step from the time the unit is purchased at auction to when the final paperwork is signed and vehicle delivered (including follow up emails/call – referral program). 
• If the owner is not available – major decisions are already made on paper, should the need arise (like – every day) SIMPLY LOOK IN THE BOOK! 

Many days a dealer is busy putting out “fires” of their own creating, wasting precious time/effort/energy and money on situations that could have easily been avoided. Let’s start with the very basic and FIRST place policies and procedures should be implemented. 

Inventory 

Every unit purchased, either from auction or individual, is to be put through a “standard checklist.”  Most mechanics will charge between $75 – $100, depending on the extent of your checklist. By using a standard checklist on every unit – mistakes go down dramatically.

Let me share an example: 

I purchase a 110,000-mile Chrysler with a 2.4L 4 cyl engine. This is not my 1^st rodeo, so I know they tend to overheat. I send it to the shop telling them to flush the radiator and replace the thermostat.  

1 week later, on a test drive, the customer gets stuck in traffic and the unit overheats –STRANDING a potential client.  

If standard checklist been used –it would have been discovered the water pump was “iffy” when the mechanic removed the cover to check the condition of the timing belt and front main seal.  

Now two fronts have been lost – that potential customer is now telling everyone about what happened on social media and they no longer trust the inventory! LESSON learned – We do not know it all and remember, no two used cars are the same. 

A dealer purchases two white 2015 Silverado’s, both with 100,000 miles.

• Truck A was owned by a Dr. (good news; maybe) – that drove it 100,000 miles on 3 oil changes and only used it to pull his RV. 
• Truck B was a company driver for the owner of a plumbing company (bad news; maybe)  

Which truck was better cared for: The one used as a toy with minimal maintenance or the one used as a money-making tool with proper maintenance? That my friends is what makes our business so much fun. 

Policies and Procedures

A checklist for recon is a very wise R.O.I. (return-on-investment) which falls under Procedures. For the sake of ease in defining Policies, these are YOUR safeguards and standards – written down. 

Policy example 1: Test drives will ALWAYS have an employee on board in the rear seat behind the passenger where it easy to observe driver. – NO deviation allowed. Remember YOU are the boss and you decide how these things will happen!

Policy example 2: In the Summer months, all prospective clients must either be “in-the-office & out-of-the-heat” in 15 min OR salesperson WILL  go into the office (appraise the mgr of progress in the process of the sale) & bring water for hydration back out to the prospects! – The rationale is simple. The needs of your customers and employees are met while giving your employee an opportunity to update the sales manager or get assistance on closing the sale. 

Again, I will repeat myself, (rather famous for that) – A POLICY means No Exceptions.  

OK, so you’re a “Mom & Pop” with no salespeople and you’re the mechanic – how does this apply? Like jam on toast. – would be my reply. 

Think about it… most people like toast. Some only want butter, some want butter & jam, and some just eat it dry! Any way you go, toast is being served. The “butter & jam” crowd like a little “treat” on their toast. 

Policies and Procedures (butter & jam) can be a real “treat” for a harried dealer. If I am the one “buying-reconing-detailing-advertising-selling-contracting-delivering and following up” every single unit that crosses my lot, you bet I want a few no brainer steps to help me get this process done QUICKER and EASIER! 

Policies and Procedures – such as standard maintenance checklists and coming in out of the heat to “regroup” – can and WILL nourish profitable growth of any Dealership. The trick is to establish and implement them EARLY in the life of a Dealership! 

The point of all this? I implore you to MAKE the investment in yourself and your business. You are a PROFESSIONAL dealer. Carve out the time and start this TODAY! 

My tag line for the last 14 years has been, CREATE-A-GREAT-DAY. We chart our course through the roadblocks of our business. Make sure you have your destination set and let your Policies & Procedures be your map.  

Get your Free Standard Auto Checklist here!

Create-A-Great-Day, 

Tom Hampton 

www.carguysagency.com 

We live in the sub-tropics here in the Houston area; however, there is just about no corner of Texas that does not experience sudden violent storms in the spring and Summer. Often times, they catch us unaware or off-guard and can do severe damage to not only our local and inventory – they can inflict severe emotional trauma as well.  

How are you and your employees equipped to handle these eventualities?  

More Bad storms are coming. Where do YOU start first?  Move the inventory, shut down, and unplug all electronics in the office. Make sure you, your family, and your employees are safe? Policies and procedures MUST be formed, agreed upon, and most IMPORTANTLY, be written down somewhere easily accessible.  

After the storm, what is next?  What damages have occurred, when is the power to be restored?  Do you or an employee need to “babysit” the lot? Should it be something of a tornado or hurricane – Steps to re-open. Are you a Shelter for the community? Or How you help the community get to the Shelter?

Being Prepared! 

Do you have simple provisions stockpiled – water / toilet paper / soap / first aid supplies / emergency change of clothes / medications / dry goods / cans of Sterno or bottles of propane (and a way to use them) / cooking utensils / canned goods / battery operated lights & fans / BATTERIES (for lights, fans, cell phones ) / gas / portable generator / sheets of plywood (cover windows) / tarps? For less than $2000 you can get most of these items and be ready for the storms we KNOW are going to come.  This kind of thing, when left to chance, will invariably lead to panic on top of disaster – two things that do not go well together!  

I know of one dealer that had a rather handsome “stash” in a container on his lot. A couple of palettes of bottled water, cases of dried goods, canned goods (all rotated and in date – smart man), batteries, flashlights, cases of paper goods (tp).  After a twister came through, he opened his pantry to the community – not to be Mr. Big.  In his words “I had it and they REALLY needed it – just to survive; besides this is MY HOME TOO!” 

That day he became a part of the community by his caring and concern for his neighbors. As serendipity, his business still has not stopped growing.  Not because of what he did – because people saw WHO he really was – one of them! He put his pants on one leg at a time, he suffered loss – however, his community was a priority for him.  

So my friends, are you even THINKING of getting prepared? Your livelihood DEPENDS on it!  

One of the 1st things people need after a disaster is transportation.  If your location is prone to flooding – where do you relocate it in the eventuality of a class 4 hurricane bearing down on your vicinity?  Going to lose all your inventory because you insist on “keeping your head in the sand”?  Or it’s too ”expensive” or it takes too much time to sit down and do all this!  

Scenario – bad storm hits, your cars were moved to high ground and your files, PC’s were off-site.  Your neighbors lost 14 units and all their electronics (not to mention salvaging files).  Would it be safe to say that overnight YOUR units are worth 20% MORE than they were before the storm?! 

PLEASE do not misquote me here – I despise price gouging and that is NOT what I am saying!  Think – you have to raise your price by 20% BECAUSE the replacement unit will be 15-25% more (supply and demand)!  Raising your pricing by 50% or more IS gouging and will cost you in the eyes of your community – for short term profit; it’s not worth it.  

After the storm is not the time to get all this done – NOW in the little “slow days” we get in the summer vacation months IS!  

Having a clear plan is on paper in front of you (or your employee) before the disaster is ripping off your roof will save hours of confusion and lots of money.  Lifeboats serve a purpose on ships – where’s yours and have you done your “Life drills”?  For once in your business – be a boy scout and get prepared!  

Harvey saw a lot of my clients “go under” (pun intended), suffering heavy losses financially, mentally and physically! Being prepared is ALWAYS a good R.O.I. (return-on-investment) whether it’s preparing your dealership, home and family, or it’s preparing yourself for a different type of ”storm” .

Make sure you are “liquid” enough to run your business and pay your employees at ALL time ($10-15k).  Review your insurance and coverages once a year – shop, it’s your hard-earned dollars here.  Take inventory of what you have, then figure out what you will need to “ride out” the next storm that crosses your life and come out OK.  Then put it on paper, be sure that EVERYONE knows where your “DISASTER PLAN” is (business and home)!  

CREATE A GREAT DAY, 

Tom