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…

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;…

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…

Part one of this topic was published here on January 19, 2012. In that article I discussed the four no-cost or low-costactivities that, when executed flawlessly, will increase a service department's customer R.O. count by at least 10%. Today I’ll address several other proven strategies to increase your customer-paid service…

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…

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…

How often do your sales consultants or sales managers have to respond like this to customers to whom they’ve just presented or demonstrated a used vehicle?

“Don’t worry about that clunking noise we heard. I’ll have a technician get it fixed in a jiffy.”

“That smell will go away as soon as the carpets are thoroughly dried out.”

“After we do a front end alignment, it won’t pull to the right…

The following article is authored by, and reprinted with permission of, Kenneth Shilson, founder and president of the National Alliance of Buy Here, Pay Here Dealers. 

Franchise dealers enter 2012 with many of the same challenges they have faced for the last 24 months: a) excess facilities; b) needing more vehicle sales; c) declining credit scores of their customers; and d) tougher credit approvals from financing subprime sources. In response, many are looking at…

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…

When I started my retail automotive consulting practice in 1987, I chose to state as my unique value proposition, "Guaranteed 1,000% Return on Investment." During my first few years as an independent consultant, I was shocked to learn that very few of my potential dealer clients had a clue about what this meant. So I would explain that, for example, if the dealer would invest $2,500 in professional fees with me, I would provide a money-back guarantee that I would assist in increasing the…

Since we initiated the Up To Speed blog, I’ve received numerous emails that suggest that one of the biggest road blocks to retail automotive success is the dealership (or department) culture. Because this is our first newsletter of 2012, I decided it opportune to tackle this thorny issue. “Culture” can be defined as the shared values and practices of the company’s (or department’s) employees, and it’s important because it can make or break your dealership. Business cultures…

Over the last fifteen years I’ve conducted numerous dealership sales meetings, at which we perform an interactive exercise called “Who Do You Know?” I ask each salesperson to write down just one name of someone they know in each of about 75 categories that I read to them over a twenty minute period. After the exercise is completed, I inspect the pages and pages of names that they’ve written down and I normally say something like, “Don’t talk to me about not having enough…

Most of you are probably adding the final touches to your 2012 business plan. At NCMi, we refer to this annual planning process as budgeting. Many experts agree that automotive dealership budgeting is as much an art as a science. Because industry business cycles are not repetitious, a good budget may result as much from experience, sound instincts, and good judgment as from anything else. Nevertheless, a budget is pretty much a view into the crystal ball, attempting to…

As I’ve written previously, the two most important elements of effective Accountability Management are 1) measuring what you need to manage and 2) inspecting what you expect. In the Service Department, the repair order analysis process is one of the essential steps in executing these two accountability elements.

The R.O. analysis is intended to provide information about Customer-Paid (C-P) sales that is supplemental to that available in the typical DMS. The proactive Service Manager…

Very few dealers are both aggressive and effective in selling Extended Service Agreements (ESAs) after the new or used vehicle has been delivered. If you are so fortunate to be among this minority, you don’t need to read any further. Since most F&I departments don’t seem to have the inclination or motivation to work these post-delivery opportunities, let’s explore an alternate strategy…structuring a process to have our service advisors aggressively and effectively sell ESAs in…

Internet Marketing vs. Traditional Marketing

When it comes to making the most out of your advertising budget, there is one key metric to look at: return on investment (ROI). ROI is a direct performance measurement of your advertising budget in terms of sales generated from various advertising media. Advertising on the Internet using a…