Tag: used car sales

Re-Birth of an Industry.

Posted on | by Tom Hampton Agency

Honestly, my friends, I did not think that I would live to see the rebirth/reinvention of the used car industry. 

My grandfather was around for its birth, my father for its heyday, and I for the rapid evolution of vehicles. The here and now, we are seeing changes we never could have anticipated, and they won’t stop there.   

In my father’s day, the salesman did it all; Desk the deal, underwrite the paper, go back and get the car made ready, then deliver it. 

Well, it kind of looks like it is 1965 again as our salespeople are granted more independence   from the desk. Our salespeople are taking more initiative to generate their own book of business as they learn to become professionals in all that they do. 

That fact in mind, what are you, the owner, doing to educate/train/inform/practice with your crew? Have you sat down with each one and done a little dream building? 

Do YOU know what your salespeople’s individual strengths are? Do YOU know what motivates them (besides $$$$)? Have you asked them for their ideas on how to improve any or all areas of the business? The way things (business) were run 6 months ago is just that…the past. A way of business we WILL NOT going back to doing. 

Getting that fact into your business model and adjusting actions accordingly is the key to PROSPERING instead of surviving the exponential changes we are all experiencing. Customers LIKE the personal service this crisis has forced dealers into. Customers like the fact of no F&I Dept process to suffer through. Customers like the test drive coming to them and the virtual test drive videos dealers are doing for every unit in stock. Customers like having the perception of having the upper–hand throughout the entire sales/delivery process. 

Customers LOVE the fact that salespeople are having conversations with them and ***MAGIC WORD*** LISTENING to them! Customers are getting what they always have wanted and feared the most…control. 

IF IT SELLS CARS – THE CUSTOMERS MAY HAVE AS MUCH CONTROL AS THEY FEEL THEY NEED. So, WHAT are you doing about that? 

How are you fostering/nurturing those relationships to ease control into the customers hand? How are you making your customer feel more a part of the process and not feel as if they are BEING processed? These are some very serious things to think upon my friends. 

Being in communication with friends/clients in the industry in all corners of this great country has painted a very clear picture of what the smart dealer is doing. They are buckling down and getting it done. In this unprecedented season of reinvention and rebirth, LET your customers, salespeople, bankers, friends, associates, and all others help you, reshape your future. 

If you do not know what your customer wants (expects) then how can you meet those wants/needs/desires? My advice, grab a notebook and pen, have a Zoom meeting with your team, and brainstorm your tails off!  

Now, more than ever, the game of “what if” can be your best tool to grow with the curve of change and not get crushed under it. 

Create A Great Day, 

Tom Hampton  

Time to Change

Posted on | by Tom Hampton Agency | 4 Comments on Time to Change

Funny thing, time… it has so many different meanings and associations.  

We here in Houston measure distance by time- “My Office is only 30 minutes from the Galleria.” We as Dealers buy according to the seasons (another different measurement of time) – for example, during the holiday seasons, we buy less and for Tax Seasons and Back to School Seasons, we buy more. 

Time regulates us. Here in Texas, you can only operate certain hours and for certain days (no consecutive Sat & Sun). Time is a man-made concept used to regulate and equalize life across the planet. 

We all have 24 hours in a day, no matter where you are on the planet. It is whether we spend or invest those hours that determine our financial future, our emotional future, and what guides us on our charted path. 

We as business owners often find ourselves in the “there are not enough hours in a day” mode. We hurriedly put out fires in various directions as we attempt to accomplish at least ONE thing on our growing TO-DO list – before the phone rings yet again? 

Sound a little too familiar? 

It happens to all of us at one point or another, after all, we are Entrepreneurs’ and we can handle ANYTHING! Well um, maybe some can, however the rest of us devoid of super-human abilities, we muddle through each day. 

Muddle time is over, (oops, there’s that time thing again) my friends! Earlier I quoted that you can either SPEND or INVEST your time. Most Dealers “spend” time looking for inventory, getting cars in and out of the shop, attempting to collect information for financing, and a whole host of other things! 

Some Dealers “invest” time sourcing inventory, recon is done in-house for most vehicles, and they have people or services prescreen their leads to expedite financing! 

What? You say that is investing MONEY and not time? Money we can always get MORE of; time, on the other hand, you cannot get back. 

So, the answer is YES. By investing capital, you gain TIME. 

Most business owners think you only have x-amount of hours in a business day. Well, I am here to tell you that you can easily “buy more hours” in a day! Some of you by now might be a bit confused, so I will clarify. 

Investing capital to “buy” more hours: Hire someone or some company to do some of the tasks you are doing right now! 

Think long and hard before you answer these:  

  • Would you pay $200hr to run to the courthouse for 3 hours to get 4 cars titled? 
  • Would you pay $200hr to run get parts or drop a car off to the shop? 
  • Would you pay $200hr to make calls for missing information and verify information already given? 

In fact – most Dealers do this every day and wonder why their business is so stressful and their profits are so low. As a business owner, your time is worth approximately $200hr! 

So, the smart operators pay out $25-$50hr to get something off their list so that they can INVEST the time into growing their business, not SPENDING their time running their business. (In some cases, the business runs the Dealer!) 

Yes. A business must be “run” in order to make money, however, that does not mean you have to run it all. 

Competition continues to come into the Independent Used Car market every day. That means your slice of the pie gets smaller with each new Dealer in town. However, the more time you can invest in yourself and your dealership, the quicker you gain market share. 

When was the last time you took a sales course or even had a sales meeting? When was the last time you paid a service to evaluate your webpage and then implement the changes When was the last time you went to a networking opportunity in your community? When was the last time you overhauled your Social Media strategy – or came up with one? 

You see my friends, there are numerous opportunities to “invest” in your future – some take capital, most simply take time. 

March 8, 2020 Time will change yet again (Daylight savings) and we will barely notice. Ask any 14 yr old the horrors of losing an hour’s sleep and March 8, 2020, has a very different meaning! 

Perspective is the key to success. 

Some may see themselves investing their time wisely by running the company; After all, they are saving money! That is what I call treading water. In a deep endless ocean, you can only tread so long before you drown. 

This is your business and your 24 hours. My role is to play WHAT-IF. So, what if you started paying a title company to run a few titles a week? What if you tried a couple of wholesalers and saved 10hrs at auction this week? What if your salespeople or heaven forbid – your customers – only be allowed to turn in complete applications for financing? What if you started your own Dealer Group to share resources and ideas? 

What If’s are endless. Your possibilities are too. 

Invest or Spend. What will you do with your TIME? 

Create a Great Day! 

Tom Hampton 

Contact us today MyRep@CarGuysAgency to learn more about our dependable products and services! Invest in growing your dealership today!  

www.CarGuysAgency.com 

The Power of Connection:

Posted on | by Tom Hampton Agency | 11 Comments on The Power of Connection:

2019 has drawn to its close my friends. It is usual for this time of year to be a time of reflection and planning. Did we measure up to last year’s goals and where are we heading to this coming year? This is very important in EVERY business, so I encourage you to get away from the dealership, turn off the phone (voicemail is wonderful) and invest an hour in this process. 

First and foremost; please come into this meeting with yourself armed with 2 very crucial things – PATIENCE & VISION. 

Patience for yourself and your employees; Business can be start-n-stop as we grow to new levels, each with its own set of challenges to master. After all uncharted waters can be both perilous and prosperous. 

Vision for your company and its potential.  

At this point, it is good to remember that only 2 things stand between unimaginable success and you. The first is LIMITED knowledge. The second is LIMITING beliefs (yours AND your employees). Who do you let in on the vision you have for your growth? If you only have employees — there is no reason to share your vision with them. If you create a family, a team — then it would be best that all share and contribute to your vision.   

Connection is the key, employees stay disconnected; whereas team members are tightly interconnected. Tight interconnection promotes COMMUNICATION, which as most of you know, is the cornerstone of any successful business (or given situation for that matter). 

Nelson Mandela was once asked what made him such a good leader. His reply was a brief story about his father. When his father sat in council with others, he always made it a point to be the LAST to speak. That way, he had heard the concerns and opinions of the others and could NOW communicate with the input of all. A pretty wise man in my book. This is one I myself am continually working to be better at. 

We tend to listen so that we can respond, not hear. A customer calls and starts to BBQ your backside over a minor issue with the vehicle (OK, minor to you)! Most of us within 2 minutes of the tirade tune out the rant ONCE we’ve heard the problem. We have our reply ready – the moment the customer takes a breath … our turn to talk, even if we cut them short! 

After all – we have the solution, we don’t need to hear all the “drama” we perceive the customer is espousing. What if, just, what if… you really listened with fresh ears? Yes, we get complaints and put out fires what seems like 100 times a day. Most of it without thinking, ‘been there – done that’ kind of thing. 

So, what if those fresh ears spent 5 minutes (that’s usually enough time to hear the whole story) and listened to this person’s fears? 

That’s the real reason they called, fear. Is there something wrong with the vehicle they just got from you? After all, they are informed customers and have listened to, read, and researched all the material about how crooked car dealers are. Didn’t cha hear?… Car dealers buy that vehicle for $1000 and just “patch it up”… then sell it for $6000 to some poor unsuspecting, hard-working person. Unfortunately, there is a very small grain of truth to that. There are too many dealers out there that skimp on recon. They spend just enough to sell it.  

What is all this rambling about goals, visions, ticked off customers, employees, team members, and connection???? Connecting to your employees, your clients – both groups’ needs/wants/desires will put you ahead of the game. Dealers are always coming up to me asking about sales/advertising/finance/inventory – Why do you suppose that is? I haven’t sold a car in 19 years and still know more about what clients want than most dealers do, by staying connected. I stay connected with the buying public. I stay connected with my clients (dealers) all over the state. I stay connected in my relationship with both the car industry and the government. Not a week goes by that I do not purposely engage someone at a gas station, convenience store, or out in public that has a fresh paper plate on the back of their vehicle (regardless of what state it is from).  

Purposely INVESTING your time into these areas will make growing your business faster and much more profitable. When people know (or feel) that you have listened to them – even when you still disagree, things will be easier between you. They feel as if they have been heard. After all, we all want to be heard – even you!  

I get asked daily for tips and tricks on how to grow. Connection is the best one in my arsenal of tips. It is always sharp and can penetrate even the most difficult of challenges when used. The goal of 2020 my friends, may be rather simple…Create as many “Fans” as you can. Starting now, begin connecting with your team, sharing the dream, and teaching them new skills to better connect with your clients. Most dealers have customers – yep sold them a car. Great dealers have fans – yep sold them a car, their cousin, a person from their work, and their postman came by too. You ONLY get fans by staying CONNECTED. 

Go out to our website at www.carguysagency.com. I have recorded a series of podcasts designed to help YOUR growth process. 

Be sure and subscribe as I put the really good podcast out to subscribers only. I figure if you subscribe – you WANT to grow and I’m going to help! 

Go out there in 2020 and CONNECT to your prosperity.   

Create-A-Great-Day, 

Tom Hampton