Even if your party did not win the White House a few weeks ago, you are still relieved, I would guess, that the election is finally over. Whether you are pleased or disappointed with the results, it is time to move on. After all, in about 30 days our country will be stepping right up to the edge of the fiscal cliff, ready to fall off into an economic nightmare in 2013. And that will surely happen, economists tell us, unless these politicians--many of whom we just (re)elected–-can reach…

It May Be Time To Kill Your Business Model Before Your Business Model Buries You

Think about this….How often do you readjust your business model? Unfortunately, there are some dealers that are still living off the same business model that they have had twenty years ago. Not to say this is a bad thing but tends to lead to missed opportunities.  

This raises a key leadership question: Why do leaders wait too long to modify or abandon their business models?…

In the second quarter of 2012, the NCM Institute (NCMi®) formed a training partnership with Automotive Internet Management (AIM). After personally auditing two of these sessions and receiving client-dealer feedback from all of the sessions, I’ve become convinced that dealers and their sales management teams need to “raise the bar” on their expectations for Internet closing ratios.

At NCMi, we have always believed and…

Recently, I’ve been busy out in the field doing what I love most—rolling up my sleeves and working on-site with client-dealers, which is something I don’t have much time for in my position as director of the NCM® Institute. Recently, though, I’ve had the opportunity to work with two exceptional dealership groups who are committed to going “from good to great.”   

I know I’ve been remarkably fortunate, over my 25+ years in training and…

Here’s your dilemma: One of your top performers--maybe a vehicle sales consultant, maybe a service advisor, maybe a technician, maybe an F&I producer--just advised you that he really wants to become a manager. Although you don’t really want to lose his production, you know that if you don’t appropriately address his request and desire, he might quit and leave, or maybe worse, he might quit and stay.

Here is what else probably bothers you about this situation;…

The original article I had scheduled for today is titled, Tactics for Improving Employee Productivity. But as I was putting the finishing touches on the content, I said to myself, “Self, you’ve skipped an important step! You shouldn’t be presenting tactics until you’re sure that your readers understand the differences between strategies and tactics.”

It’s my understanding that “strategy” is derived from the ancient Greek word,…

A sound Internet/BDC operation is a key component of every successful automotive dealership. The question is, what makes a sound Internet/BDC operation? When the NCM Institute decided to sponsor a dealership Internet/BDC training program earlier this year, we decided upon one of the recognized e-Commerce experts in the retail automotive industry,…

I’m sure you’ve heard this theme over and over: the automotive retail world we work in today is in continual flux, requiring continual adaptation and an unprecedented acceptance of change. At the beginning of each of our NCM Instituteclasses, we ask the attending dealership executives and department managers, “What is your biggest single challenge?” Although it may not quite come out of their mouths this way, the answer we…

Everyone I talk to seems to have their own conception of what the 80/20 Rule is all about, but very few people in the retail automotive business fully understand its dominant principles and how they should be applied to our business. Nonetheless, I’m a believer that the 80/20 Rule can and should be used by every sensible person in their daily life. The successful utilization of this principle can multiply the profitability of auto dealerships and the effectiveness of any…

It’s time for a continuation of the mini case study focused on the objectives established and challenges faced in building processes to develop, measure and manage OTDBs in the operating departments of an NCM client automotive dealership group. In our article titled OTDB Measurement and Management – Part Two, published on March 20, 2012, I discussed the structure of the vehicle sales department and the general expectations that we defined and communicated to the members of the sales…

It’s probably because of my college training in industrial engineering, but I’ve always been fascinated and challenged by trying to define any meaningful relationships between “opportunities to do business” (OTDBs) and sales results. After a half-century of experience in the retail automotive business, I’ve concluded that there truly are consequential metrics associated with selling both vehicles and service at an auto dealership. 

For instance, do you know how many good vehicle sales…

Last week I attended NCM’s semi-annual meeting of all its divisional directors, 20 Group moderators, Retail Operations consultants, and NCM Institute faculty members, who, along with our CEO set aside two and a half days to dialogue about what’s happening around the industry and within the company, and how best to address the needs of our clients.  As usual, it was a great encounter, with far too much agenda content and discussion for the overall time allotted.

One of the topics that…

Participating dealers can now use iMR matching funds for customer journey service marketing programs; Service CSI and notification programs eligible for iMR Parts dollars

Daytona Beach, FL – July 25, 2012 – DMEautomotive (DMEa), the industry leader in science-based, results-driven automotive marketing, today announced that five of its leading sales and service…

I recently had the privilege of teaching our first NCMi class that is totally focused on leadership in automotive dealerships. We began this 1½-day class talking about “employee engagement,” and the general managers attending this session began positively nodding their heads, when I started this discussion with, “Surveys show that…

                1. Less than one in four American workers say they work at their full potential.

                2. One-half say…

I am again continuing the mini case study focused on the objectives established, and challenges faced, in building processes to measure and manage OTDBs in the operating departments of an NCM client dealership group. Today, my focus is on one of the greatest vehicle sales opportunities that most dealers enjoy, but fail to capitalize on.

At one point during this engagement, I had asked the dealer principal if he was satisfied with the strategies being employed to develop vehicle sales…

When I was teaching the Sonic Dealer Academy from 2001 through 2008, my co-instructor, Steve Hallock, became famous for asking each class why they thought we spend so much time talking about the service department. He would explain that it’s because, at a 75% gross profit margin on labor sales, the service department offers, by far, the greatest incentive to increase sales. "So why bother?" Steve would ask. "Because it’s only75…

The NCMi faculty members and the NCM Retail Operations field consultants have learned that managers who effectively manage the elements of “controllable profitability” within their respective operating departments normally produce a significant departmental net profit. This, of course, assumes that the majority of dealership expenses (limited-control and fixed) are fairly distributed to each operating department.

Many managers, however, lack the proper focus on controllable…

It's 2012, your a General Manager of a car dealership.  What are some things you need to be doing daily?  Here are a few easy practices that will help you build value in your dealership, increase profits and maintain high levels of customer satisfaction.  Rest easy though, these idea will literally cost you nothing but a little time and creativity.

Granted time and creativity are of immense value and that is exactly why these actions NEED your attention and participation.  Take a look…

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…