Alwyn du Toit’s Post

Doesn't matter whether it's boats, autos, tractors or motorcycles... the most successful dealers relentlessly focus on the phones. No mystery why; the typical phone close rate is double the typical web-lead close rate, and together both are key to encouraging visits and driving even more retails. This latest Pied Piper study is for boats, but the logic is identical regardless of industry.

Topic: "Increase Unit Sales by Focusing on Closing More of Your Desked Deals, Not Increasing Lead Volume" As car dealership owners and leaders, we're constantly seeking ways to boost our unit sales and drive profitability. The common approach has been to relentlessly pursue increasing lead volume - investing heavily in marketing, advertising, and lead generation tactics to bring more potential buyers through our doors. However, is this the most effective strategy? The data suggests otherwise. The reality is that car buyers (or leads) in a given market are a fairly fixed commodity. There are only so many potential customers to go around, and the competition for these leads is fierce among dealerships. Driving higher lead volume is an incredibly challenging and resource-intensive endeavor. The more impactful, and arguably easier, opportunity lies in improving your closing ratio on the leads and desked deals you already have. Industry statistics show that car dealerships, on average, close just 1 out of every 3 deals they desk. That means two-thirds of your hard work in qualifying, presenting, and negotiating with potential buyers is going to waste. Not to mention the loss of the dealership profits associated with every new deal closed and new customer gained. What's the root cause of this low closing ratio? The biggest factor is price. Customers are increasingly research-savvy and price-conscious, and they're walking away from deals where the numbers don't align with their expectations. And the fact is that a customer that is willing to go through the desking process with your dealership and doesn’t buy, IS BUYING somewhere else! So, instead of pouring more resources into attracting new leads, I challenge you to shift your focus to finding ways to close more of the deals you're already desking. With 2 of every 3 deals being missed, there is huge room for improvement. Some strategies to consider: - When a leads come in on vehicles that are no longer in your inventory, be prepared with switch vehicles that closely match their original vehicle of interest. - When desking the deal, consider not only the front end gross profit associated with the deal, but the total dealership profit (cross departmental profits, long term profits, etc.) - Provide Dealer/GM/Operator insights into your best price before letting a customer walk and missing a deal - Manage and track your missed deals as precisely as you do your won deals - Consider leveraging marketing dollars to put toward closing efforts The bottom line is this: in today's competitive automotive landscape, the path to driving sustainable growth lies not in chasing ever-elusive leads, but in maximizing the value of the opportunities you already have. Do you think there's more opportunity in driving higher lead volume, or in closing more of those you already have? Either way, tell me about your plan. I'd love to hear your thoughts and experiences in the comments below.

The Art of the Sale…In the Drive   At its core, the dealership service department is a people business. Creating and nurturing lasting relationships with our clients and providing them with transparent consultations on their vehicle. Building rapport while partnering with them during the walk around, escorting our clients to the waiting room, never letting them touch a door handle and consistent updates will determine success. But…we need to sell. Yes, sell. It’s an ugly word in many circles and doesn’t jive with terms like “transparency” and “experience”. Yet, we are for profit organizations and the rent factor won’t get paid by smiles and handshakes. This isn’t taking away from their importance – no service sales advisor is successful in building a book of business without realizing the human factor. Still, we need to ask for money in exchange for a service. As Corey Smith says, "customers buy from people they know love and trust". But the word “buy” is still in there. We have to sell. How is your menu presented and what does the menu consist of?  Are there options for the client and reasons why they need to maintain their vehicle? Are word tracks used or do the consultants wing it? Do you have it digitally? Is it VIN based? Do you have a process for the presentation of the MPI? Is it a different process if the client is waiting in the dealership? Are you asking the customer to bring up the MPI on their own trusted smart phone bringing them to an individualized microsite?  Do your service advisors watch a video, made by the technician, with the client? Do you have a T/O process for declines? Many managers and advisors shy away from this as they believe they are putting too much pressure on the client. But why does it work on the variable side? If we remember the human side of the business, are you doing your clients a disservice by not finding out and over coming objectives with another face on safety items? Join us on Service Drive Live, this Sunday, June 23rd, at 7:00am CST to listen, learn and share with some of the best leaders in the business about selling in the drive. With experts such T.C Coleman and Darryl Terrell Jr on the call, you won’t want to miss this opportunity to share and learn. DM #SDL host Joe Chambers for a link – Close your June with knowledge, a rekindled passion to sell and truly serve your guests. Get Better. Get Real. Get on #SDL.     #servicemanager #service #serviceadvisor #fixedoperations

What sales actions are your team taking? I wrote this article last week summing up everything I have done in my life of auto repair: Why Auto Repair Shops Can’t Afford to Wait: Proactive Sales Actions to Keep Your Bays Full https://bit.ly/4gVNn4K I use the example of a car salesman, which I have been. While growing a used car sales business in California, I was on a hiatus from my family auto repair shop and living on commission. When sales were slow, and I was frustrated, I would take sales actions. Sometimes, they seemed trivial to those around me. I painted windshields with "Big Sale" and balloons, but never a Wacky Waving Inflatable Arm Flailing Tube Man (that was going too far). My longest-running lead was 1.5 years. When I was slow, I would call him once a month. I was in disbelief when he bought a car from me. Service advisors and technicians can act like car salespeople, waiting for an "Up." They can wait for the phone to ring, for a customer to show up at the counter, or for a car to appear in a bay. Auto repair shop employees need to be real salespeople. Service advisors can follow up with previous customers. Technicians can push service advisors, "Can you touch base with Jim on that BMW 3 Series? The car needs brakes; he did not do them." Let me know if anything in the article resonates with you. We could help with an email or text message blast. We could also develop a seasonal promotion but avoid discounting. We can't break cars or force people to spend money. But we're here to help ensure that your shop is the name they think of when they do need to spend money. - Adam Kushner

What sales actions are your team taking? I wrote this article last week summing up everything I have done in my life of auto repair: Why Auto Repair Shops Can’t Afford to Wait: Proactive Sales Actions to Keep Your Bays Full https://bit.ly/3Yf7pjq I use the example of a car salesman, which I have been. While growing a used car sales business in California, I was on a hiatus from my family auto repair shop and living on commission. When sales were slow, and I was frustrated, I would take sales actions. Sometimes, they seemed trivial to those around me. I painted windshields with "Big Sale" and balloons, but never a Wacky Waving Inflatable Arm Flailing Tube Man (that was going too far). My longest-running lead was 1.5 years. When I was slow, I would call him once a month. I was in disbelief when he bought a car from me. Service advisors and technicians can act like car salespeople, waiting for an "Up." They can wait for the phone to ring, for a customer to show up at the counter, or for a car to appear in a bay. Auto repair shop employees need to be real salespeople. Service advisors can follow up with previous customers. Technicians can push service advisors, "Can you touch base with Jim on that BMW 3 Series? The car needs brakes; he did not do them." Let me know if anything in the article resonates with you. We could help with an email or text message blast. We could also develop a seasonal promotion but avoid discounting. We can't break cars or force people to spend money. But we're here to help ensure that your shop is the name they think of when they do need to spend money. - Adam Kushner

As car sales professionals, our goal is to create win-win situations where customers drive away happy and dealerships maintain profitability. Here are some effective negotiation techniques to help you navigate price discussions with confidence: 1. Knowledge Is Power Before entering negotiations, thoroughly understand your inventory, market pricing, and available incentives. This knowledge allows you to speak authoritatively and build trust with customers. 2. Focus on Value, Not Just Price Shift the conversation from price alone to the overall value proposition. Highlight unique features, warranty coverage, and after-sales service to justify the vehicle's worth. Has your dealership just renovated facilities or bought new equipment in service - emphasize these to your customers. 3. Use the "Sandwich" Technique When presenting numbers, sandwich less favorable aspects between positive points. For example: "This model comes with our premium package, the monthly payment is $X, and it includes free maintenance for 3 years." 4. Employ the "Feel, Felt, Found" Method When facing objections, use this empathetic approach: "I understand how you feel. Other customers have felt the same way. But they found that..." 5. Present Multiple Options Offer three pricing options - high, medium, and low. This gives customers a sense of control while keeping them within your acceptable range. 6. Use Silence Strategically After presenting an offer, remain silent. This often prompts customers to fill the void, potentially revealing their thoughts or concerns. 7. Leverage the "Puppy Dog Close" Encourage extended test drives or overnight trials. The more time customers spend with a vehicle, the more attached they become, making negotiations smoother. 8. Practice Incremental Concessions When making price adjustments, start with smaller increments and gradually decrease. This shows flexibility while preserving profit margins. 9. Highlight Time-Limited Offers. Create a sense of urgency by emphasizing limited-time manufacturer incentives or dealership promotions. 10. Focus on Monthly Payments (When Appropriate) For customers primarily concerned with affordability, discussing monthly payments rather than total price can be effective. However, always be transparent about the overall cost. Remember, successful negotiations aren't about "winning" against the customer. They're about finding mutually beneficial solutions that lead to satisfied customers and repeat business. What negotiation techniques have you found most effective in your dealership? Share your experiences in the comments below!

🚗 **Empowering Our Team: The Crucial Role of Turnover (TO) in Car Sales** 🚗 Hey my SALES colleagues! I wanted to take a moment to highlight something incredibly important in our line of work: Turnover (TO). As sales professionals, understanding and optimizing TO is not just a metric—it's a key driver of our success. **Why TO Matters:** 🔹 **Customer Satisfaction:** A streamlined turnover process ensures our customers experience a smooth and efficient buying journey, leading to higher satisfaction and repeat business. 🔹 **Efficiency:** High TO rates mean we're closing deals faster, maximizing our time and resources. 🔹 **Revenue Growth:** By turning over inventory quickly, we not only increase sales volume but also keep our product lineup fresh and appealing. **Tips for Optimizing TO:** 1. **Know Your Inventory:** Stay updated on what's in stock and what's coming in. This knowledge enables you to match customers with their perfect vehicle quickly. 2. **Customer Follow-Up:** Regularly check in with potential buyers. Timely follow-ups can turn hesitant shoppers into happy car owners. 3. **Collaborate:** Work closely with our finance and service departments. A well-coordinated team can expedite the sales process and enhance the customer experience. Let's continue to push the boundaries and set new records. Together, we can make every customer interaction count and drive our success to new heights! Keep up the great work, everyone. Your dedication and expertise make all the difference. #CarSales #CustomerExperience #SalesManagement #TeamSuccess #Efficiency #RevenueGrowth Price Family Dealerships 📍🙋🏼♂️ The Luxury Collection Walnut Creek 📍 😁

People feel the same way about financial advisors as they do car salesmen. And we know what they think, shady. However, there are a few things that financial advisors can learn from car salesmen. Quick and early qualification: Being really great at qualifying client needs and problems. They do this in a few ways, they provide technology options on their websites, and they truly let the client lead the conversation early on. This allows them to tap into the emotional needs the client is conveying and how they are prioritizing it. This is the human component of how car salesmen connect with their prospects that advisors can take a master class in. Only showing what is unique: Showing prospects the best opinions, help them qualify their situation and gain the best solutions faster. Once a car salesmen knows your qualifications and understands what you really need, they zoom past all the cars in the lot, and focus in on the top three cars that would be perfect for you. This makes someone feel special and unique. Advisors can take this exact strategy by streamlining and only focusing on 2-3 solutions, so that clients are not overwhelmed by choices that make it easier to close this sale. Recalibrating the client needs: With every option provided, car salesmen will seek approval in very small ways. Confirming that the needs and problems are being addressed by a particular solution. This is where the good, better, best strategy comes in especially to counter pricing objections because something has to give. Using these sets of strategies together, narrows down solutions, helps advisors come across as less pushy and more authentic than car salesmen. #HeyKyra #FinancialAdvising #ClientExperience #ModernSolutions #ClientTrust #FinancialLiteracyMonth #Empowerment #FinancialExcellence #Knowledge #RIA #FinancialAdvisor #WealthManagement #FinancialFreedom #InvestmentStrategies #InsuranceAgent #FinancialPlanning #USA #Forbes #MorningStar #FinancialAdvisorMarketing

Every interaction your team has with a customer or prospect is an opportunity to change the conversation about your Service department. In our latest blog, we take a look at common misconceptions about dealership service and how to address it.

🚗 Unlock Your Dealership's Full Potential with AITHR Hub - Act Now While It's Still Free! 🚗 In the fast-paced world of auto sales, opportunities like this don't come around often. AITHR is offering you a golden ticket to elevate your dealership's sales and visibility without any cost – but only for a limited time. This is your chance to join the exclusive ranks of dealerships maximizing their potential with AITHR Hub, the premier platform for showcasing inventory and closing deals commission-free. Why Jump on This Opportunity? Exclusive, Time-Sensitive Offer: Access to AITHR Hub is currently free, but this incredible offer won't last forever. Sign up now to secure your spot. or Book here https://lnkd.in/dsbReQ37 More Than Just Sales: With AITHR, you're not just gaining a platform for inventory; you're unlocking a comprehensive suite of tools designed to drive sales and maximize profits. The Edge Over Your Competition: Every day without AITHR is a day your competitors get closer to capturing your potential deals. Don't let them outpace you. Limited Time Means Limited Opportunity Things this good don't last forever. AITHR Hub's free access is a rare opportunity to revolutionize how you sell cars and manage your inventory without any initial investment. But time is ticking, and so is your chance to be a part of this game-changing offer. Are You Ready to Lead the Auto Sales Revolution? This is more than an invitation; it's a call to action for forward-thinking dealerships ready to step into the future of auto sales. Contact us today to sign up for AITHR Hub while you still can. Let's make every deal count, together. 📞 Secure Your Spot with AITHR Today: Book here https://lnkd.in/dsbReQ37 or call 604-706-1290 Join Now and Stay Ahead with AITHR's cutting-edge platform. Sign up while it's free and start transforming your dealership's approach to sales and inventory management. The future is here, and with AITHR, you're always one step ahead.