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VISIT US AT WWW.OIADA.COM

WWW.OIADA.COM DECEMBER 2018 OIADA 3

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President Siamak Lotfi

Executive Vice PresidentJim Weaver

1st Vice PresidentGary Brooks

Secretary/TreasurerSalvador Alvarez HerreraZamora Auto Sales

Chairman of the BoardGary Sargent

ADVERTISING /MARKETING Autotrader.com866-836-1455Used Cars.Com by Dealix650-599-5616Cars.comJames Lynch312-601-5052Carsforsale.comGrant Lockner605-306-3492Interactive Financial Marketing GroupTravis Weisieder804-248-0892

ATTORNEY Byrd Cabrera LLPRobert (Scott) Byrd310-365-1954

BOND & INSURANCE Hecht & Hecht Insurance AgencyLarry Hecht503-542-1130Shepard & Shepard Business SolutionsTodd Shepard1-855-396-0488 #8

DEALER AUCTION Manheim Seattle Auto AuctionRay Priest206-762-1600Manheim Portland Auto AuctionAlex Fraser503-286-3000ADESA Seattle Auto AuctionMark Dumbler253-735-1600

ASSOCIATE MEMBERSDAA SeattleDave Blake253-737-2200United Vehicle AuctionsLori Jacoby503-380-1927ADESA Northwest Auto AuctionMark Melton541-689-3901

ADESA Portland Auto AuctionJerry Hinton503-492-9200Crosspoint NW Dealer AuctionBrian Hardy503-594-2800DAA Northwest (Dealers Auto Auction)Mitzi VanVoorhis509-244-4500CarMaxSean McDonald804-747-0422Insurance Auto Auction Inc.Austin Andrews503-253-1500

DEALER SOFTWARE Frazer Computing IncJake Morley888-963-5369Motor Vehicle SoftwareJohn Brueggeman546-270-6699

FINANCING Credit AcceptanceJohn Bragg360-980-2214Lobel FinancialDavid Lobel714-816-1301The Equitable Finance Co.Brandon Fox503-808-7939

Pac West Credit LLCJohn Kiefer541-868-2595United FinanceTodd May503-238-6488Oregon Community Credit UnionRich Black541-681-6311Nationwide NWGlenn Wheeler678-735-0341Credit Concepts IncJason Moon541-342-8545Reliable Credit AssociationsDavid Marx503-462-3022Ted Investment LLCTom Garza503-213-1109

FLOORPLAN Lobel FinancialDavid Lobel714-816-1301NextGear CapitalRobert Torbet503-358-3911Floorplan XpressJosh Chandler503-621-9260Auto Cap Services (ACS)Michael Smith800-800-6494

PUBLIC AUCTION Woodburn Auto AuctionSteve Morin503-981-8185Petersen Auction Group of OregonCurt & Susan Davis541-689-6824

SECURITY Pro-VigilKris Brackin210-858-1105

SERVICE CONTRACTS AUL CorporationJacqueline Swank800-826-3207Benchmark Dealer ServicesJacob Bangert360-834-3333

Elite Warranty, IncAl Ham503-530-0912NVP WarrantyJohn Enlow888-270-5835Protective AssetDylan Doran818-836-1455

OIADA BOARD OF DIRECTORS

WHAT’S NEWN A B D S E S S I O N S O N L I N ECheck it Out on NIADA.TVAll sessions from the NABD Buy Here, Pay Here Subprime Conference powered by NIADA are now available online. The robust offering of education sessions from the BHPH industry’s premier event include topics such as Facebook Marketplace, underwriting, the effects of the new tax laws, social media, internal controls, industry benchmarks and more from industry leaders. Check it out at NIADA.TV.

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NIADA HEADQUARTERSNATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATIONWWW.NIADA.COM • WWW.NIADA.TV2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838For advertising information contact: Troy Graff (800) 682-3837 or [email protected]. OIADA Dealer News is published monthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 6006-5203. The statements and opinions expressed herein are those of the authors and do not necessarily represent the views of OIADA Dealer News or NIADA Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2018 by NIADA Services, Inc.

STATE MAGAZINE MGR./SALES Troy Graff • [email protected] Jacinda Timmerman • [email protected] Friedlander • [email protected] LAYOUT ChristyHaynesPRINTING Nieman Printing

DECEMBER 2018

INSIDE05 ........................................................NIADA CPO06 ................................................ 20,000 by 202006 .................................... Facebook Marketplace08 .......................... OIADA Convention Highlights10 ..... Drive Drama-Babies from Your Dealership13 ...................... A Reason Many Salespeople Fail14 .......................................... Earning Trust in F&I

ADVERTISER’S INDEXADESA ................................................................ 7DAA Northwest/Seattle ..................................IFCLobel ................................................................... 3Manheim ............................................................ 11NextGear Capital .............................................. 12vAuto ................................................ Back Cover


Two New Dealerships Added to the CPO Family

RLB Sales & Leasing and 6th Gear Auto – both of Fort Worth, Texas – are now proud members of the NIADA Certified family. To celebrate, NIADA held kickoff launches at both dealerships.

“It’s important to us to be here,” said Warrantech business development manager and program administrator Mike Sims. “Not only to us as a whole, but to these dealerships as clients, as partners of ours with NIADA.”

Scott Lilja, NIADA’s senior vice president of member services, was also on hand to offer support and explain the benefits of partnering with NIADA. “We’ve been around for 73 years protecting dealers’ interests, putting together programs to help them get to that next level in terms of differentiation and quality, and trust and transparency with consumers. And that’s what the NIADA CPO program is really about.”

The NIADA Certified Pre-Owned Program offers high-quality used vehicles backed by a powerful warranty with nationwide reach, and backed by NIADA – a national association whose more than 15,000 members are dedicated to integrity and subscribe to a strict code of ethics.

For a vehicle to be considered “NIADA Certified,” it must undergo a 125-point inspection conducted by a licensed repair facility and be backed by a rigorous vehicle history report. Once all requirements have been met, dealers are then able to offer these vehicles to their customers along with a number of features and benefits, including the following:

• A CARFAX vehicle history report.• Special financing for qualified customers.• Flexible, fully customizable warranty

options.• Roadside assistance, towing, vehicle

rental and lost key/lockout service.Offering these benefits is already paying

big dividends for both dealerships. “My turnover is in the 40s now and that’s

what I’m really proud of,” said 6th Gear Auto Sales owner Chris Johnson. “We’re selling cars faster, but more importantly, our systems, our procedures and our policies through Warrantech have helped us sell more cars through our training processes.”

“It adds value to what we’re doing here,” said RLB Sales & Leasing general manager Shane Collins. “It adds value to every vehicle we sell. We’ve already seen the uptick. We’re pacing 60 cars this month when last month we did 30, so we’re excited. It’s going to be a long, happy journey.”

To learn more about how your dealership can become NIADA Certified, visit niadacertified.com/dealers or call 1-877-310-0288 to sign up today.

6th Gear Auto – Fort Worth, Texas

RLB Sales & Leasing – Fort Worth, Texas

NIADA PARTNERS WITH DEALERSHIPS TO OFFER CPO VEHICLES

ASSOCIATION NEWS


The National Independent Automobile Dealers Association has begun a new nationwide membership initiative. Its goal is to reach 20,000 members by 2020.

The organization will reach this goal by focusing on the states with the highest growth opportunity. This simple strategy measures current market share – number of members compared to number of licensed dealers.

NIADA state-affiliated associations that provide more dealer educational programs and effective advocacy at the state capital – and are able to negotiate exclusive member discounts for their members – generally have a bigger footprint, typically between 30 and 60 percent market share penetration.

NIADA has already begun working with the state organizations by working closely with the state directors and their board members to understand their state-specific challenges as

well as develop a clear understanding of their goals. And more importantly, NIADA is working with states’ leadership on specific strategies that will pave the way for state associations to grow and stay relevant.

Paul John is NIADA’s vice president of national field operations. He can be reached at [email protected] or 770-616-5156.

T H E O R G A N I Z A T I O N W I L L R E A C H T H I S G O A L B Y F O C U S I N G O N T H E S T A T E S W I T H T H E H I G H E S T G R O W T H O P P O R T U N I T Y . T H I S S I M P L E S T R A T E G Y M E A S U R E S C U R R E N T M A R K E T S H A R E – N U M B E R O F M E M B E R S C O M P A R E D T O N U M B E R O F L I C E N S E D D E A L E R S .

COVER STORY

ASSOCIATION NEWS | By Paul John

The NIADA Begins New Membership Initiative

ONLINE MARKETING |By Digital Air Strike

FACEBOOK MARKETPLACE FOR AUTO DEALERSHIPSExplained in 60 Seconds

Facebook Marketplace is an easy, convenient way to buy and sell just about anything, including cars. More than just a replacement for sites like Craigslist, Facebook is quickly turning Marketplace into the world’s largest online e-commerce site. Your dealership needs to be ready.

Facebook recently revealed a series of partnerships with automotive companies like Kelley Blue Book, Cars.com, Edmunds, and others that are quickly turning Facebook Marketplace into the biggest car buying site, used by 550 million people each month – and quickly growing.

It’s free to manually upload used vehicles to Marketplace and start selling!

Dealerships can also partner with companies to help them automatically upload their inventory onto Facebook Marketplace. Once posted, vehicles and dealerships on Marketplace are displayed to shoppers based on their location.

By default, Marketplace shows listings and dealerships within 40 miles of a person’s location. Shoppers can sort through car listings using typical filters like price, model, and mileage.

A big bonus of Marketplace is that after a shopper views a vehicle, it will be advertised to them again in their newsfeed, as well as

newly added similar vehicles. This is a great cost-effective way to keep your vehicles and dealership fresh in a customer’s mind during that critical consideration phase.

Facebook Marketplace

doesn’t stop at listing your used inventory. You can also advertise on the platform, allowing you to reach customers where they’re spending their time. This gives your dealership an advantage over your competitors because you are connecting with

customers who are actively shopping for vehicles.

Interested buyers can quickly and easily contact dealerships directly from the vehicle listing with Facebook Messenger.

Facebook Messenger conversations are a little different from your typical chat interaction (in a good way). Unlike some website chat interactions, conversations in Facebook Messenger don’t disappear. This opens the opportunity for future follow-ups to help nurture the sale. Additionally, shoppers are notified of new messages on both Facebook and Messenger apps, which helps increase read and response rates.

While it’s great that you can access Facebook messages in the future, problems arise when dealerships do not have a team to tend to incoming messages. Typically, when a shopper contacts your dealership, your sales team must respond. Your entire team may not have access to your Facebook business page, may be focused on other customers, or your dealership may be closed. Still, the longer you take to respond, the more likely your customer is to lose interest or check out other vehicles being sold by other dealers.

The solution is to integrate A.I. powered messaging onto your Facebook page. A bot can automatically qualify the interest level of every lead that comes in your system. When a lead is hot, the correct team member is notified by text and email for instant follow up!

For more information email [email protected] or visit www.digitalairstrike.com.


ASSOCIATION NEWS

2018 OIADA CONVENTION

62nd Annual ConventionOIADA celebrated its 62nd annual convention

in October with keynote speaker Ken Shilson, the number one spokesman for BHPH dealers.

We were so pleased with our top notch associates who led the way in our trade show. Thank you to all. We could not have hosted a successful event without you:

• Shepard and Shepard Insurance• AutoZone• DAA• NVP Warranty• Lobel Financial• Elite Warranty• Columbia Collections• Benchmark Dealer Services• SubPrime Analytics• Geffen Mesher.Once again we heard from DMV’s Robb

McCracken on the many updates in DMV. The number one topic for Robb was his new position as lead investigator of illegal car sales, known as curbers.

Robb was followed by Ken Shilson, our keynote speaker, who shared his wisdom on the BHPH industry. Many dealers are well into their BHPH programs, while others came to review the many opportunities of becoming a BHPH dealer.

David Porter of Geffen Mesher gave an inside view of internal fraud. We were amazed at how long this can go on without the owner figuring it out and how important it is to have your own check and balance system. Also from Geffen Mesher, Michael Lortz and Cassandra Lodore gave a very important overview of what the new tax laws mean to the bottom line of your business.

OIADA was very excited to show a sneak peek at the new dealer auction app. This app is not only to provide dealers and auctions an easy way to track their discounts, but will also provide updated information on additional vendors and special auctions as well as alerts from OIADA. We hope to have the final version available to our members by the end of the first quarter.

Congratulations to Oregon’s 2019 Quality Dealer of the Year, Eric Freeman and Marshall Zoerner. Eric and Marshall will be representing Oregon in June at the NIADA annual convention.

Freeman Motor Company has grown from one to over 50 employees, and the entire team is committed to community service. They have a gift to help serve others.

Education is a way of life at Freemans. Both Eric and Marshall are Certified Master Dealers. Eric has served as a spokesperson for NIADA concerning CMD. Marshall has taught salesmanship and how to find and keep the perfect sales team at NIADA’s annual convention.

What’s next for Freeman Motor Company? A second dealership in Salem, soon to open after the first of the year, complete with a service center and over 40 additional staff members.

Congratulations, dealers Eric Freeman and Marshall Zoerner and assistant general manager Kara Copeland!

What did OIADA consider for the Quality Dealer award?

• History of the dealer and dealership – where and how they got started in the industry.

• Full understanding of the number of employees and the history of growth.

• Description and pictures of the physical dealership.• Letters of support from customers and employees.• Length of membership with OIADA.• Commitment to service in his or her community,

including civic and service awards. • Educational background and training, and the

commitment to both as the dealer and staff. Time to start viewing your team for the 2020 Quality

Dealer of the Year! Contact OIADA for more information.

2018 OIADA Quality Dealers Eric Freeman (left) and Marshall Zoerner (right) with assistant general manager Kara Copeland.



MANAGEMENT MATTERS | By Dave Anderson

DRIVE DRAMA-BABIES FROM YOUR DEALERSHIPDon’t Let Drama Limit Your Potential

There is little that is less productive for a team member to engage in than drama, and to subsequently become a “drama-baby” in the process. In fact, there is little that equals drama’s ability to distract from priorities, waste time, drain energy, and make Alps out of anthills.

“Drama” is the result of immature acts, committed by small-minded and selfish people who are either indifferent or oblivious to the negative value they inflict on both culture and teammates.

While any of us may be prone to fall into the drama trap occasionally by overreacting to a simple event or conjuring up exaggerated and gloomy scenarios unlikely to ever occur – and normally doing so based on limited information – the drama-babies I’m addressing in this piece are those who are known for it. When you see him or her walking down the hall you can almost smell drama and a headache. Some drama-babies have perpetrated drama for so long they don’t even realize they’ve become a cultural contagion of toxic behavior.

The following points are designed to create self-awareness and strategies to help stop drama in your workplace, and to curtail the development of drama-babies. While you

won’t ever eliminate drama completely from entities populated by human beings,

you can do more to model productive behaviors personally, and to leverage

peer awareness and peer pressure to demonize and minimize drama throughout your dealership.

THREE QUICK THOUGHTS ON DRAMA

AND DRAMA-BABIES· To create context for

this piece, consider that Urban Dictionary defines drama as

“A way of relating to the world in

which a person consistently

reacts to or greatly exaggerates

the

importance of benign events.” Drama-babies have a predictable knack for overreacting to everyday events, for choosing to be offended, and for making everything possible be all about them.

· Typically, drama-babies are those who are chronically bored, or who have an inordinate craving for attention. They covet sympathy and continually bait others into “rescuing” them in some manner – normally through inordinate attention, sympathy, counseling, or helping. The bottom line: drama-babies don’t really have much of a life, so they endeavor to create a false reality that feeds their fancies and dramatic appetites.

· Drama-babies enjoy manipulating others, often dragging them into their hyperbolic fantasyland to gain attention or make their own dullard existence more interesting.

FIVE EVIDENCES OF DRAMAFollowing are five evidences of drama in

general, and of drama-babies specifically, followed by five suggested remedies.

Be aware of these symptoms. Watch for them. Address them when they manifest. And encourage peer accountability to discourage dramatic behavior from top to bottom in your dealership.

· Having one supposedly serious crisis after another.

Example: Over time, drama-babies communicate an unlikely and immense trail of crises in their lives that may include exaggerated family, health, or relationship issues.

· Constantly telling other people about one’s personal or career problems.

Example: You normally know far too much information about drama-babies – every headache, heartache, and hemorrhoid is described in agonizing detail.

· Claiming to have experienced negative experiences that are highly implausible.

Example: They’ve been personally affronted, offended, insulted, dismissed, disrespected, or slandered by an array of haters and bullies they encounter in their everyday lives – in traffic, at the drive-thru, from law enforcement and flight attendants, in attacks by social media trolls or Russian hackers, and even the occasional stalking or kidnapping by little green men in UFOs.

· Making claims without sufficient facts, or lack of detail about supposedly serious events.

Example: Starting or hearing rumors and blowing them out of proportion or presenting with authority what they have minimal – if any – facts to base their claims on.

· A pattern of irrational behavior and reactions to everyday events.

Example: Someone took Sue’s Diet Dr. Pepper from the breakroom refrigerator and she’s convinced a teammate is set on destroying her. Or, John didn’t get the credit he thought he deserved for the project’s success so now he’s updating his resume because he “knows” he’s about to be fired.

FIVE REMEDIES FOR DRAMA· Start with your own example.Go to work to work smart, and focus on

the aspects of your job you can control. Speak more in terms of what is positive, possible, and productive. Stop being consumed with what someone else is doing or getting and mind your own business. Don’t gossip and reject gossipers. Look for ways to add value, bring solutions to the table and positively impact team members and customers alike.

· Get your mindset right and keep it healthy during the day.

My book, Unstoppable, goes into extensive detail on how to develop this essential discipline. In a nutshell: limit your intake of garbage media, websites, and conversations, and replace it with a structured routine that inspires, motivates, and educates. And start it before you get to work in the morning. Get in the zone before you leave your house for the dealership.

· Keep yourself and others so busy with high expectations and the productive activities necessary to achieve them that there is no time for drama.

Remember that human beings, including yourself, develop to their potential within the confines of a structured and effective daily routine – one that leaves no time to initiate or listen to drama-baby nonsense.

· Conversationally, firmly, and respectfully address drama and refocus the perpetrator on something more productive, and encourage team members to do likewise. This type of peer accountability is essential to driving out drama.

Set the example with words like: “This is starting to sound like drama, I’m

getting back to something more productive.”“This is starting to sound like drama, let’s

both get back to something more productive.” “You can’t control it or affect it, so get back

to something you can control and affect.”“Let’s get back in the zone.”“Let’s leave the drama zone and do

something productive.”“Let’s make today about performance, not

excuses.”· Stop pandering to dramatic people with constant hugging, coddling, pep talks and rescuing.

You teach people how to treat you, so if you respond to drama unproductively, you’ll encourage more of it. What you reinforce with positive attention, including drama, you can expect to see more of. And if you are a leader who engages in drama personally, you are giving those in your charge license to do likewise. Inevitably, if it hasn’t happened already, you will become the unofficial momma or papa of a whiney and miserable family of drama-babies in your department.

As a leader you’ve got to do better, and you’ve got to start now.

Dave Anderson, “Mr. Accountability,” is a leading international speaker on personal and corporate performance improvement. He is also the author of 14 books and host of the podcast, The Game Changer Life.



reverse is only available by looking through the other side of the car window.

• Placing the guide in the glovebox or under the seat.

“As Is” Provisions Don’t Prevent All Consumer Claims

Another area that is particularly sticky for the Buyer’s Guide is warranties. Many dealers are under the false impression that checking the “as is – no dealer warranty” box prohibits all consumer claims. Unfortunately, that isn’t the case. The reality is that a dealer selling a car “as is” only prevents claims arising from implied warranties.

Implied warranties can be disclaimed. There are two so called “implied warranties” involved whenever a car is sold – implied because they exist whether they are ever spoken aloud or written. They are the implied warranty of merchantability and the implied warranty of fitness for a particular purpose. In laymen’s terms, this means warranties that a car is fit for sale (i.e., merchantability) and will be useable for driving (i.e., fitness for the particular purpose).

Express warranties, on the other hand, cannot be disclaimed through the use of an “as is” provision or some other expression the car is offered without warranty. Dealers, and especially sales personnel, have to be particularly careful when selling a used car not to cross the line from sales puffery to an unintended warranty. Express warranties are created when a salesperson makes a verbal or written statement that essentially guarantees product performance or quality.

Example of express warranty: “This car will last you 200,000 miles!”

Example of sales puffery: “This car is in good condition and a great value!”

Express warranties also obligate the dealer to claims concerning those representations. Dealers need to be careful about what representations they make about a car to buyers because an “as is” provision doesn’t nullify those representations.

Upcoming EnforcementArguably, the most important thing dealers

need to be aware of concerning the Buyer’s Guide is that regulators will be cracking down. The guide has been on the FTC’s watch list ever since rules governing the guide were revised in 2016.

Earlier this year, the FTC performed a random compliance audit of more than 2,300 vehicles nationwide to see if dealers were following the rules. They weren’t. In fact, over 50 percent of those vehicles failed to either include the guide or display it properly.

Seeing such a huge red flag, the FTC is surely signaling an increase in regulatory crackdowns. Savvy dealers will take steps to ensure compliance with these regulations and avoid potentially substantial fines by working with experienced automotive counsel that can advise and audit their guide use and related consumer compliance obligations. Anthony Cacciatore and Adam Steele are attorneys with Ohio law firm Mac Murray & Shuster LLP. For more information, call 614.939.9955 or visit www.mslawgroup.com.

REGULATORY MATTERS |By Anthony Cacciatore & Adam Steele

FTC USED CAR BUYER’S GUIDE Three Things Auto Dealers Need to Know

Though its usage rules may seem straightforward, the Federal Trade Commission’s Used Car Buyer’s Guide includes several requirements that seem to catch many auto dealers off guard.

First and foremost, the FTC requires it be displayed on all used cars sold by a dealer. The guide must contain details concerning the vehicle’s background along with any warranties available to the buyer.

Failure to perform these steps can lead to private class action lawsuits and FTC enforcement penalties reaching $41,484 per incident.

Don’t Forget to Display the Entire Guide

The FTC requires the guide be affixed to the vehicle in such a way that both sides of the guide are easily readable by potential buyers. This rule, however, presents an initial challenge because the guide is two pages long.

Per the FTC, compliance can be accomplished by:

• Displaying the guide on one of the vehicle’s windows so that both sides may be read.

• Hanging the guide from the vehicle’s rear-view mirror.

• Placing the guide in a plastic sleeve on the outside of the vehicle so buyers may remove and read it.

• Another creative solution that doesn’t prevent the consumer from seeing the full document for the vehicle.

What doesn’t work?• Using a double-sided print so that the


The person who just “kind of” wants to lose weight, thinks it “might be nice” to play the harmonica, or is in sales because it “pays the bills and gets me to the weekend” isn’t putting in extra time to plan out how they’re going to actually make it happen. This is similar to the person who spends more time planning a vacation than their retirement. They simply aren’t serious about the latter.

The good news is a sales system doesn’t have to be a painstakingly detailed, step-by-step system like those required to run a franchise such as Subway or Starbucks. All that’s required is that it leads to enough of the right activities resulting in enough contacts with enough qualified prospects to make enough sales to hit weekly, monthly, and annual sales goals.

INGREDIENTS FOR A SUCCESSFUL SALES SYSTEM

A PlanYour plan is the easy part of this process.

It simply consists of your goals, your activity, and your plan to get the activity done.

The first thing you need to determine is your annual sales goal. Once you have your annual goal, break that down to monthly and weekly goals.

Next, calculate your daily activity. To do that, begin by dividing your annual goal by the size of your average sale. That will give you the number of sales you have to make for the year.

Now, based upon your closing ratio, figure out how many proposals you need to present. Calculate the number of prospects you need to get that number of proposals.

How many calls does it take to get that number of prospects?

Once you have the total number of sales, proposals, prospects, and calls, break those

down to monthly, weekly, and daily numbers for each.

Your last step is to plan your days and weeks based upon the number of calls you need to make while getting your other activities done. Whatever your numbers are, with 168 hours in a week, you should have more than enough time.

An example of the business portion of a day might look like the following:

• 7-8 a.m.: Paperwork and prep for the day. • 8-10 a.m.: Prospecting phone calls. • 10 a.m. - 12 p.m.: In-person prospecting.• 12-1 p.m.: Lunch. • 1-3 p.m.: Appointments. • 3-5 p.m.: Prospecting phone calls. • 5 p.m.: Paperwork. The ToolsYour tools will consist of a playbook, a binder

with all scripts, a Concept Book, and a way to track and follow up with clients and prospects.

Your playbook will include company policies and procedures, how you start your day, how you find, contact, and follow up with prospects, how to build long term relationships, and how you end your day. It’s something you can hand to a brand new person, who can be up and running once they have a general understanding of it.

Scripts in your binder include all prospecting calls, presentations, answers to objections, and all other items you need to convey to prospects and clients.

Your Concept Book will contain all your “evidence,” such as testimonials, user lists, reference letters, endorsements, articles, guarantees, examples of where your product or service was applied with successful results, and all documentation that supports any claims you make during your calls.

Finally you need CRM (client relationship management) and PRM (prospect relationship management) systems in place. These don’t have to be super-complicated or even computerized – they just have to be effective. I have one sales rep who uses a yearly planner, 3x5 index cards, and an Excel spreadsheet. The key is you have a system and it’s effective.

Follow the Plan and Make Adjustments Once you have your plan, get into action

as soon as possible. Notice what is and isn’t working and make adjustments.

Remember, imperfect action is better than no action. The biggest problem I see with putting a system together is that some people become perfectionists and as a result are never ready to take action.

Take action every day, even while you are putting your system together. Do not stop everything you’re doing and decide you’re going to wait until you have the perfect plan in place. Do sales activities every day whether a plan is in place or not.

If you’re looking for an additional resource to help you put together a system, one of John’s tools is Business Growth Vault at CoachBru.com.

John Chapin is a sales and motivational speaker and trainer. He has over 27 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For more information, visit www.completeselling.com or email

[email protected].

SALES MATTERS | By John Chapin

A REASON MANY SALESPEOPLE FAIL How to Avoid It

In a recent article, John Brubaker of CoachBru.com said, “According to a U.S. Department of Commerce research study, in the first five years of a business the survival rate for independent small businesses is less than 20 percent but the survival rate for franchises is 95 percent.”

“It isn’t so much the name recognition,” said Brubaker. “It’s the fact that with a franchise you get to utilize a turn-key set of business operations [a successful system that works] as opposed to having to invent the wheel in your own business.

“Starbucks [has] an excellent system, which is why they have a thriving business. From the point of purchase displays, merchandising, upsells, menu options and language to the tiered pricing, customer service, and order production/fulfillment methods, they have a calculated, streamlined process for every single touchpoint.”

During a discussion with me, he said his own research found salespeople and entrepreneurs that follow a sales system are 10 times as likely to be successful as those who don’t.

The reason this is true may not be what you expect. It’s also not the same exact reason for franchise success, though it’s similar.

The primary reason why salespeople following a system are 10 times as successful as those who don’t is that they care enough to have a system to begin with.

Let me explain. The first step to success in sales is an iron-clad commitment that you’re going to be successful. Anyone committed to a goal lays out a plan and follows a system to achieve that end.


Coverage TransparencyNot all coverage levels were created

equally. It’s important to impart this to your customers.

If you’ve mastered your menu selling strategy, working backwards from the highest level of coverage achieves this goal for you. Focusing on what customers miss out on and using this technique in tandem with highlighting small daily cost differences, it’s easy to spell out value that will help your customer see you have their long-term financial interests in mind.

Provider ReputationCustomers may object to a service

contract due to the industry’s reputation. But working with a reputable partner has its benefits – most notably your ability to showcase that reputation to customers.

When you can show customers the product you’re selling is backed by a company with decades of experience and billions in claims paid, peace of mind will come easily – and quickly.

Showcase Past ResultsDoes your customer still not trust your

F&I process? Even the most difficult customers

can’t deny real-life results. Keep close a file of past work orders or a claims paid report and show that difficult buyer all the money VSCs have saved your past customers. No customer can refute the value of a VSC after seeing exactly what it’s done for people in their shoes.

Perhaps the most difficult obstacle to overcome in the F&I office is getting your customers to trust that the products you’re offering will be worth the added cost. Establishing that trust is the first step in building the foundation for long-term F&I success.

But how do you go about gaining the trust of someone whose money you’re looking to spend on additional products like a vehicle service contract?

Just like most things in life, honesty is the best policy in the F&I office. Being upfront about monthly costs, coverage limitations and the company backing your products will help customers feel the confidence they need to feel to make a service contract purchase.

Payment TransparencyFor the vast majority of customers,

you’re negotiating on monthly payment and getting them on board with how the cost of a service contract impacts what hits their bank accounts each month. At a glance, the added cost can be staggering, especially in a world where 78 percent of people are living check to check. But breaking it down by daily cost could help overcome this hurdle.

For example, the daily cost of a $300 payment is roughly $10 a day. If you add $50 per month for a service contract, that daily cost is just over $11 a day. This nominal daily increase compared to the cost of major repairs can help customers see the value in added vehicle protection.

ACCELERATE | By GWC Warranty

EARNING TRUST IN F&IShowing Customers the Value of F&I Products

Complete this test and certify below that you have read the articles for December 2018.

“20,000 BY 2020”What is “20,000 by 2020?”a) A goal for individual sales.b) A membership initiative.c) An industry forecast.

“FACEBOOK MARKETPLACE”True/False: Facebook is quickly turning Marketplace into the world’s largest online e-commerce site.True/False: Facebook Marketplace is irrelevant to independent dealers.

“2018 OIADA CONVENTION”True/False: OIADA’s new dealer auction app will provide updated information on additional vendors and special auctions as well as alerts from OIADA.

“DRIVE DRAMA-BABIES FROM YOUR DEALERSHIP”Which of the following is evidence of drama, drama-babies in particular?a) One “crisis” after another.b) Constantly telling others about one’s problems.c) Making claims without sufficient facts about supposedly serious events.d) All of the above.True/False: What you reinforce with positive attention, including drama, you can expect to see more of.

“A REASON MANY SALESPEOPLE FAIL”True/False: The primary reason why salespeople following a system are 10 times as successful as those who don’t is that they care enough to have a system to begin with. Which of the following ingredient(s) for a successful sales system did the article discuss?a) A plan.b) The tools.c) Following the plan and making adjustments.d) All of the above.True/False: You need to perfect your plan before you take action.

“EARNING TRUST IN F&I”How can you earn trust in your F&I office?a) Transparency.b) Provider reputation.c) Past results.d) All of the above.

I certify to OIADA that I have personally read these articles in The Oregon Dealer News Magazine for December 2018. STOP!! Before you sign and send this form, make sure you have answered and completed all the quiz questions to receive Continued Education Credits.

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T H E O F F I C I A L M A G A ZI N E O F O R E G O N I A D ...499].pdfSalvador Alvarez Herrera Zamora Auto Sales Chairman of the Board Gary Sargent ADVERTISING /MARKETING Autotrader.com