This is the continuation of the mini case study focused on the objectives and challenges of building a process to measure and manage OTDBs in the operating departments of an NCM client dealership group. Today I’ll be focusing on the vehicle sales departments in general.

The sales management staff had decided that OTDBs needed to be first divided into five major categories: (1) first-time walk-ins; (2) Internet leads; (3) blind phone inquiries; (4) proactive salesperson appointments;…

Over the last 15 years, NCM Associates has provided hundreds of educational programs that delivered unparalleled training to thousands of dealers, general managers and department managers. However, there is one area in which we have admittedly fallen short…focused leadership training. Up until now, our primary focus has been on the “nuts and bolts” of dealership management. However, the NCM Institute faculty members, as well as many of the dealership personnel that…

It was in late 1987, and I was conducting an in-dealership workshop focused on financial and operational planning and controls. I was describing an F&I process that I had recommended to increase service contract penetration, when the general manager said, “We used to do that.” In response, I asked, “Did it work?” “Absolutely,” he answered. I was tempted to say, “Then why did you stop doing it?” but I was new to the consulting business and didn’t want to risk offending one of my few…

We (CarWoo!) recently completed a review of over 7000 transactions that processed through the CarWoo! MarketPlace and I would like to share our findings with my friends here on DealerELITE.

            The three key take away’s from our efforts are:

1. The hours of operation of your Internet department are mis-aligned with online shoppers. You should consider reviewing your department’s hours of operations and align them with online shoppers not your showroom…

A few weeks ago, we published an article titled “Clear Expectations Set the Standard for Dealership Excellence.” In that discussion, I talked mostly about setting expectations. Today I’ll be presenting one of the processes that NCM recommends for managing expectations…the “one-on-one” meeting discipline.  Why should we have one-on-one meetings?  Because every employee needs and deservesto have quality, individual, interactive…

Over the last ten years, anyone who has not witnessed dramatic changes in the used vehicle arena must have his head in the sand. Why is it then that so many franchised new vehicle dealers have thus far failed to effectively adjust to these changes? So that you understand what I’m talking about, I’ll just mention two of these impactful changes:  (1) the growth of the Internet as a marketing source; and, (2) the advantages available through inventory optimization technology. Even the language…

4 consumer points to consider when selling car accessories

Since the release of the popular film “The Fast and the Furious”, car accessorizing has shifted from being a secret of car gear enthusiast to a main stream phenomenon. Two sequels later and the aftermarket accessory market continues to average 8% growth annually. Car dealerships…

Several years ago one of my more enlightened and proactive client-dealers said to me, “I know I don’t really need more opportunities to do business; I just need to do a better job of measuring and managing the OTDBs I already have.” He then asked for my help to develop and implement a traffic management process for each of the five operating departments within his multi-rooftop automotive dealership group. Over the next several weeks,…

At most automotive dealerships the last two to three days of the month are typically a flurry of activity by department managers and their productive and support employees trying to get the last deal, the last R.O., and the last counter slip billed out and counted. It always has been, and always will be, the culture of the retail automotive business because, unlike most other businesses, the “counting and accounting cycle” is measured in individual months.

Why is it then that very few…

Over the last ten years, anyone who has not witnessed dramatic changes in the used vehicle arena must have his head in the sand. Why is it then that so many franchised new vehicle dealers have thus far failed to effectively adjust to these changes? So that you understand what I’m talking about, I’ll just mention two of these impactful changes:  (1) the growth of the Internet as a marketing source; and, (2) the advantages available through inventory optimization technology. Even the language…

Title tags should be a part of the SEO strategy of every car dealership website.  Why?  Its contents not only provide the text for the blue-links shown on search engine result pages (meaning users use them to help decide whether or not to click onto your dealership’s site), but also tell search engines what each unique web page contains.

Many auto dealers leave this important SEO aspect up to their dealership website providers.  For those…

Google+ has been promoted lately by many in the SEO industry as a "must-do" for local businesses to help their search engine optimization efforts.  While an important tool for SEO moving forward, there are other areas your dealership can utilize to keep your search engine optimization on the cutting edge.

Here are a couple of additional things your car dealership should be keeping an eye on to keep your SEO efforts top-notch as the search landscape continues to change:…

While some dealerships are successful with their email marketing campaigns, it is a task that can easily fall to the back burner or be neglected.  When done correctly, email marketing is an effective way to stay in touch with existing customers, and build a relationship with potential car buyers. 

If your dealership has let your email marketing efforts go in…

“I don’t need another book on farmin’, when I ain’t farmin’ as good as I know how right now!”

I remember that statement like it was yesterday.  That’s what a dealer told me over the phone back in 1987, in the the early days of my consulting career.  It was right after I explained the services I could offer him. He made it very clear to me that he wasn’t interested in anything new and different. He knew that “magic bullets and shiny objects” wouldn’t provide the solutions he…

By now, many of you have verified your dealership’s profitability for 2011.  As most dealers, general managers and controllers understand, until we perform a final year-end reconciliation of each asset and liability account, the YTD profitability displayed on our income statement remains an unproven number.  For some of you, this verification process will result in an upward adjustment to your 2011 profitability. However, experience tells me that most dealers…

Many professional sales and sales management trainers believe that you have not "maxed out" on a vehicle buyer until that buyer initiates one additional sale (additional household vehicle or personal referral) during his/her normal purchase cycle. Mathematically, here's how the "one additional sale" concept works:  

Assume that the normal customer purchase cycle…

Sometime in your automotive management career, I’m sure that you’ve all been asked, “How do you know whether you’re winning or losing without a scorecard?” Scorekeeping and scoreboarding is a discipline that falls within each of the following major Elements of Effective Accountability Managementas discussed in previous blog posts:

• Plan your Work and Work Your Plan!

• Clearly Define and Communicate Your Expectations!

• Measure What You…

In late December, we posted an article titled, “How Do You Increase Service Department Sales?” In that article, I noted that there are only three ways to do this, the most difficult being to increase the number of customer-paid service transactions (customer R.O. count).  Up To Speedreader feedback indicates this is a high-priority subject, so today I’ll discuss one way to increase your customer R.O. count.

What follows is a…

Several weeks ago we published an article that discussed the 6 Elements of Effective Accountability Management. The second of these elements, “Clearly Defining and Communicating Your Expectations,” is a critically needed, but rarely well-practiced, discipline within the retail automotive industry. You’ve heard it before: people will rise to the level of performance and/or behavior that is set for them. Mind reading is not a job requirement, in spite of what some dealership managers…

The labor sales potential for any franchised dealer’s service department is first dependent on the units in operation (UIOs) for that franchise in the dealer’s market. Unfortunately, very few of the manufacturers provide this UIO information to their dealers. For a fee, vehicles in operation (VIOs) are available by zip code from R.L. Polk, Inc.

Since there are other estimates used in the calculation of labor…