At the conclusion of the NCMi webinar on “Finding the Missing Pieces to Improve Service and Parts Gross Profit,” one of the attendees questioned our recommendation as to the necessity for sub-accounting for automotive dealerships. Robin Cunningham, the NCM Institute faculty member who presented the webinar, suggested that our next Up To Speedarticle attempt to clarify this recommendation. So, here we go!

A meaningful sub-accounting process is a primary ingredient of…

3 Reason Your Delivery Coordinator holds the Keys to Your CSI Scores

Your delivery coordinator is the resource who will help yourcustomers through the delivery process. This person will work hand in hand with customers to make sure…

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…

What an Apple Store Can Teach Dealerships about Selling Accessories

Apple stores are one of the most successful retail stores in the world. In 2009, when retail sales declined around 2%, Apple’s retail sales rose roughly 7%. According to The Mac Observer, one of their largest growing product segments is accessories...iPad owners…

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…

We recently completed a regional NCMi® training workshop in Washington, D.C. titled, “How to Make the Phone Ring and the Door Swing in YOUR Used Vehicle Department.” One of the class exercises was for the attendees to complete a checklist to determine if they operated a “World Class” used vehicle department. Following are the questions that resulted in the most productive discussions: 

• Is the Daily Trade-Walk discipline being diligently followed?

• Is the…

Customer’s taste in accessories not within budget? This will help...

When presented with a prospect, one of your first questions will be: “What are you looking for in your new car?” From there you’ll narrow down the type of vehicle, make, model, and a list of features. Features on a vehicle used to not carry much…

In the February 28, 2012, issue of Up to Speed, I discussed the changing role of used vehicle managementand the overwhelming number of responsibilities that have become part of that function today. Although dealership managers must be accountable for all of the 30 regular responsibilities mentioned in that…

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…