The Puget Sound Dealer, 2013 issue #1

2

3

4

The Puget Sound DealerOfficial Publication of the

Puget Sound Automobile Dealers Association16101 Greenwood Avenue N Bldg 2100

Seattle WA 98133Phone: 206 542-3551Fax: 206 542-7561

Email: [email protected]

BOARD OF DIRECTORS 2013PresidentSara CarterCarter Subaru, Shoreline

1st Vice PresidentSteve KleinKlein Honda, Everett

2nd Vice PresidentJim WalenFord-Hyundai of Kirkland

3rd Vice PresidentDan Wilder, Jr.Wilder Auto Center, Port Angeles

Trustee Position #1Marc IkegamiDoug’s Lynnwood Mazda, Doug’s Lynnwood Hyundai, Doug’s Northwest Cadillac

Trustee Position #2Doug ByersByers Volvo, Seattle,

Immediate Past PresidentJim MorinoAcura of Lynnwood

PSADA STAFFJames R. HammondExecutive Director

Linda HalversonExecutive Assistant

Susan LeonhardiPrograms and Data Base Manager

Michele FoleyOffice Assistant

A Message from the EditorDoes Your Dealership Prevent Employees From Succeeding?

InsidethisIssue

For information on advertising in this publication contact

Jim AitkinsBlue Water Publishers, LLC

360.805.6474

7 Message from the President - Sara Carter

8 Properly Classifying Independent Contractors and Employees

12 Recruiting and Hiring the Best People

16 The Koenigs and Their Peninsula Connection

20 A Research Primer for Automotive Business Superheros

24 Managing By the Numbers

30 What Defines a Good Leader?

35 Are Your eMails, Chats and Spelling Tarnishing Your Image?

I read a book recently that said, “If you want a Mona Lisa, take you hand off the paint brush.” Sounds funny, right? But wait. It will make great sense in a few minutes. You know, we all hire people. When we hire them we are hiring them because of the qualities we see in them. Why else would you hire someone if you didn’t think they had the ability to do the job...and the ability to help the company grow? This same thinking is usually true for the new hire, as well, who takes the job because they think they can do it well and be an asset to their new company.

All this sounds good, but all the good intentions frequently get stymied when the person starts getting assimilated into the company family. Company families often try to retrain a person so they will know their place in the company family and conform more comfortably to what the company family expects from everyone in the family. This is human nature. This can quickly temper a person’s enthusiasm and willingness to step forward and become the person who was hired.

Unfortunately this problem doesn’t always exist just with new people. It can exist with people who were “new” a long time ago, who have great ideas, but, who are afraid to “rock the boat” and encourage changing the way “things are done around here.”

One of the biggest reasons very talented people leave good companies is because they aren’t allowed to freely do the job they are very qualified to do the way they know they can do it. Instead, they get discour-aged and the company loses the opportunity they have to grow and prosper from new ideas and methods from people who hold back because the system in which they work intimidates any efforts they make to create positive change.

The question to ask is “Do we allow people in our company the freedom to use the gifts and talents we hired them for, or do we bury them in predetermined pathways that are always used “just because we have al-ways done it that way?” Are you missing a golden opportunity to cash in on some amazing qualities of people you hire -- qualities that have been overlooked but readily available to tap into for some unexpected success? The surest way to ruin someone’s creativity is to over manage their abilities with rigid restrictions.

Take some time to look more closely at your team. Every single person you have hired has special qualities, talents, and abilities. Use their abilities. Encourage them to use them. Affirm and nurture them with their successes. Remember, a kind word can go a million miles, but a bad word or making someone feel invisible can ruin a lifetime of opportunity and trust. In other words, if you want your people to paint Mona Lisa’s, take your hand off the paint brush and let them paint a masterpiece. Then, stand back and watch your company family’s productivity grow.

James HammondExecutive Director

Cover photo by Adam Buchanan

g

5

6

You Talk. We Listen.At Ryan Swanson, we connect with people on a human level. That’s why our approach to helping

clients reach their goals is practical, straightforward and cost effective. It’s our no-nonsense way of

doing business that puts people first, like Brad Brotherton of Brotherton Cadillac.

Humanese Over Legalese. 206.464.4224 | www.ryanswansonlaw.com

7

EGreat New Features Coming

With New Wage Survey

Message from the President

Sara CarterCarter Subaru

Every year most dealers look forward to getting the Wage and Benefit Analysis Report that PSADA produces for the entire state of Washington. Last year the Report added a productivity management tool that gave you the opportunity to compare your gross income department by department against like dealerships in your own region. This new feature was a big hit.

This year there are too many new reporting features to list, but here are two re-ally important ones: Have you ever wondered if staying open late on Saturday or all day Sunday really increases your bottom line? We know it increases your expenses, but what about profits? Well, this year your survey will have charts and graphs that will show you, region by region, a comparison of dealership open hours compared to reported gross incomes. You will be able to compare your profits and the hours you are open to others who are open longer or shorter hours.

And what about fast lube services? Which work better? Those attached to the store or inside, or those that are unattached, independent buildings located directly on your curb? Which are more profitable and what are the best hours to keep these operations open and still make money? You will be able to find answers to these questions in chart and graph form, region by region, in your Wage and Benefit Analysis Report. These are great new tools from your Association to help you operate your business more ef-ficiently.

You should get your report by mid-April as an online electronic pdf. Keep your eye open for an email from Susan Leonhardi at PSADA. In April she will be sending you your access code to the encrypted document.

Have You Passed Washington’s Tests?

PROPERLY CLASSIFYING CONTRACTORS AND EMPLOYEES!

INDEPENDENT

8

IIt is a common mistake for employers to mis-classify individuals as independent contractors instead of employees. Determining whether someone should be classified as an independent contractor or as an employee is a legal minefield because different laws apply in different con-texts. Multiple state agencies audit employers to uncover misclassifications and each agency ap-plies a different test in making its determination. Regardless of the test applied, the presumption is in favor of finding that individuals are em-ployees and not independent contractors.

Whether a worker is classified as an em-ployee or independent contractor is subject to increasing scrutiny in Washington State and around the country. When misclassifications are discovered, the employer faces stiff penalties and liability. For example, the employer must pay back taxes, back wages, insurance premi-ums, penalties, and interest for all misclassified workers. Therefore, it is essential to examine each independent contractor relationship to de-termine whether it should instead be classified as an employee relationship so that the dealership can avoid potentially significant liability.

One test for independent contractors is in Washington’s Industrial Insurance Act, which is enforced by the Department of Labor and In-dustries. Generally, individuals may be exempt from being considered employees if they meet all of the following six criteria:

1. The individual must be free from direc-tion and control;

2. The service is either outside the usual course of business for which the service is performed, or the service is performed outside all of the places of business of the enterprise for which the service is performed, or the individual is responsible for the costs of the prin-cipal place of business from which the service is performed;

3. The individual is customarily engaged in an independently established trade, occupation, profession, or business, of the same nature as that involved in the contract of service, or the individual has a principal place of business for the business the individual is conducting that is eligible for a business deduction for federal income tax purposes;

4. The individual is required under IRS rules to file a business tax return with the IRS;

5. The individual has an active account and unified business identifier number (UBI) with the Department of Revenue; and

6. The individual maintains their own separate books and records showing business income and expenses of the business.

By Britenae PierceRyan, Swanson & Cleveland, PLLC

Have You Passed Washington’s Tests?

9

10

Washington’s Employment Security Department enforces the Employment Security Act and uses two alternative tests to determine whether someone is an independent contractor or an employee. The first test is:

1. Whether the individual is free from direction or con-trol over performance of the service under the contract and in practice;

2. Such service is either outside the usual course of busi-ness for which such service is performed, or such ser-vice is performed outside of all the places of business of the enterprises for which such service is performed; and

3. The individual is customarily engaged in an indepen-dently established trade, occupation, profession, or business, of the same nature as that involved in the contract of service.

The second test is:1. Whether the individual is free from direction or con-

trol over performance of the service under the contract and in fact;

2. Such service is either outside the usual course of busi-ness for which such service is performed, or such ser-vice is performed outside of all the places of business of the enterprises for which such service is performed, or the individual is responsible under contract and fact for the costs of the principal place of business from which the service is performed;

3. The individual is customarily engaged in an indepen-dently established trade, occupation, profession, or business, of the same nature as that involved in the contract of service, or such individual has a princi-pal place of business for the work the individual is conducting that is eligible for a business deduction for federal income tax purposes

4. The individual is responsible for filing a schedule of expenses with the internal revenue service for the type of business the individual is conducting;

5. The individual has an account with the department of revenue and has registered for and received a UBI number; and

6. The individual maintains their own separate books and records showing business income and expenses of the business.

A third test was adopted by the Washington Supreme Court in July, 2012, when considering Washington’s Minimum Wage Act. The test considers whether the alleged employee is, as a matter of economic reality, dependent on the business to which he or she renders the service. The factors are:

1. The permanence of the working relationship between the parties;

2. The degree of skill the work entails; 3. The extent of the worker’s investment in equipment or

materials;

4. The worker’s opportunity for profit or loss; 5. The degree of the alleged employer’s control over the

worker; and 6. Whether the service the worker performs is an integral

part of the employer’s business.

As seen from these various tests, there is no single factor that controls whether an individual is an employee or an indepen-dent contractor. The multitude of tests leads to confusion for employers and may result in conflicting results and additional liability. For example, employers can be found to have prop-erly classified an independent contractor for purposes of the Employment Security Act and to have misclassified that same individual for purposes of the Minimum Wage Act.

To avoid liability for misclassification, employers should have written contracts with their independent contractors identi-fying that the independent contractors:

are free from direction/control, have their own UBI numbers, keep their own books and records, are responsible for and pay for their own taxes, bear their own costs and expenses, perform tasks outside the company’s typical opera-

tions (such as a dealership hiring a graphic designer for its website),

provide their own tools and materials, and are limiting the job to a fixed project instead of an

ongoing relationship, among other factors.

The parties must follow these contracts in practice: Dealers should consider the factors in the tests above for

every independent contractor relationship. Due to the complex-ity of the laws, dealers are advised to seek legal counsel when classifying an individual as an independent contractor and when facing an audit over classification.

In the future, dealers may have to follow new laws govern-ing independent contractors. Potential state legislation is being considered which proposes a uniform test for covered employ-ees and would prohibit misclassification of workers, prohibit retaliation against employees, would create new enforcement actions, and would create a statutory lien for wage claims. While many employers oppose this bill, if passed, it would create significant upheaval and would have wide-reaching consequences for all employers. Until any of this proposed legislation is approved, dealers would be wise to follow the various tests outlined in this article to protect your dealership in the near future.

Britenae Pierce is a partner practicing in Ryan, Swanson & Cleveland, PLLC’s Employment Rights, Benefits and Labor Group. She can be reached at 206.654.2289 or [email protected].

11

Learning from your peers: It’s what you do in your 20

groups. Couldn’t your accounting team benefit from

a similar event? We thought so too. That’s why we’re

facilitating our seventh annual two-day workshop designed

to help CFOs and controllers at auto, truck, RV, and heavy

equipment dealerships nationwide share best practices,

learn about vital accounting and tax issues, and much

more. Space is limited—save a spot now. www.mossadams.com/dealerservices

rev up your financial operations DATE

June 20–21

LOCATION

New York–New York Hotel & Casino, Las Vegas

REGISTER

www.regonline.com/2013DSWorkshop

CPE credit available upon request.

2013 Workshop for Cfos and Controllers

12

TThis is the fifth in a series designed to help you look at how you manage key aspects of your business. Each piece offers some insight, some suggestions and a short assessment of that area. Previously we’ve presented assessments related to Operational Systems, Job Expectations, Compensation and Goals & Objective Setting.

Hiring is the most important task performed in any organization. It’s the organization’s people that provide the true competitive edge. Having intelligent, motivated, competent people, with personalities that are compatible with the organization’s goals is the single most important factor determining profitability, levels of client/customer satisfaction and return on investment.

Several factors make effective hiring today more challenging then every before. The labor pool is shrinking – there are simply fewer qualified candidates to choose from. New hiring laws restrict the process and can create a very expensive downside if hiring is not done properly. And many managers use ineffective hiring practices that simply don’t result in hiring the best people. This is because most organizations have no systematic hiring process and most managers have had little to no training in this critical process.

An effective recruiting and hiring process helps managers hire only the best people by using highly developed procedures and tools to:

• Increase the candidate pool through effective recruiting – Organizations using an effective recruiting process typically have seen a fourfold increase in the number of qualified applicants per position. This has a positive impact on the quality of employee hired.

• Systematically review and research candidate

qualifications – Comprehensive, information-gathering forms and techniques help identify the best people for consideration, weeding out less desirable candidates. This makes the process much more efficient and cost effective.

• Improve interviewing skills to identify the best people to hire – Managers do a better job in the interview identifying the best people to hire – the most intelligent, the most motivated, with the most compatible personalities.

The result is that the best people are hired. This also leads to lower employee turnover, higher productivity, higher client/customer satisfaction – all leading to higher profits!

The Bottom LineEffective recruiting and hiring practices will …

… significantly increase your candidate pool …… improve your selection process …… resulting in your hiring only the best people!

Use the Recruiting & Hiring Checklist on the next page to inventory your current status. It is recommended that each manager complete a checklist for their area of responsibility.

John Strom has been helping retail automotive managers improve their performance for over 25 years. He has held a number of management positions in both single-point and multiple franchise operations, including General Manager. His company, Strom & Associates, is a member of the Performance Development Group. To learn more as about their services, visit www.perdevgrp.com.

By John Strom

RecRuiting & HiRing

tHe BeStPeoPle

13

h h h

h h h

h h h

h h h

h h h

h h h

h h h

h h h

h h h

h h h

h h h

h h h

h h h

h h h

0

14

15

Phot

o by

Ada

m B

ucha

nan

(l. to r.) Bill, Jr.; Bill, Sr.; and Chris

16

OOn a map, the North Olympic Peninsula appears disconnected, perched in the top left corner of the state and isolated by deep waters and soaring mountains.

For the Koenig automotive family, it’s the most connected place on earth.

“We’re lucky to live and work in a community like Port Angeles where people care for each other,” says Bill Koenig, Sr. “Our area has been physically cut off from time to time but we’ve always felt connected to our neighbors and the car business.”

That business is Koenig Chevrolet/Subaru, established in the mid-seventies by the transplanted mid-westerner who had learned by doing in the fast-paced environs of Chicago. Seeking a franchise of his own, Bill brought his young family – wife Carole and sons Chris and Bill, Jr. – to Port Angeles in 1975 and was soon up and running with a Chevrolet/Oldsmobile dealership. At the time, General Motors was stressing upgrades and new construction.

“GM wanted us to build a new store and by 1979, we had done it,” he says. “Subaru joined us about that time, our family was settled in and loving the area…and then the bridge blew away.”

Indeed, the great storm of February, 1979, brought 80 mph winds up the Hood Canal, destroying the bridge that had been the peninsula’s lifeline to Seattle and beyond for decades. It would be four years of barges, ferries and elongated travel before vehicle traffic could again cross the bridge to the peninsula.

“This community has shared and survived a lot of challenges together,” says Bill, Sr. “When we first came out here there was still a big logging industry – 95% of our sales back then were trucks. We’ve adapted and changed right along with our neighbors and customers.”

Today the Koenig dealership is one of the business cornerstones of the North Olympic Peninsula. It’s one of the first businesses you see as you drive into Port Angeles on Highway 101, and the size of their large and diverse inventory would indicate that the car business is solid in this corner of the state.

“The Internet has expanded our customer base far beyond the peninsula,” says Bill, Jr. “We used to spend days away from the store at auction – now we do it online which gives us more time with our customers. We’ve had buyers travel here from thousands of miles away because they found the vehicle they were looking for online at our dealership.”

By Craig Chastain

THE KOENIGSAnd Their Peninsula Connection

17

18

The Koenigs will tell you that their longevity is due in no small part to their loyal customer base, and the quality and reputations of the brands they sell.

“Chevrolet is giving us an outstanding lineup with everything from heavy-duty trucks to high mileage sedans and hybrids,” says Chris. “Subaru has all-wheel-drive models that are perfect for all our driving conditions. They are known brands we’re proud to represent and they help connect us to the community and to the ‘outside world.’”

Chris and Bill, Jr. have followed in their father’s footsteps to make

the “community connection.”

The three men are active Rotarians; all are Paul Harris Fellows and Chris is a past club president. Bill, Jr. is president of the local food bank and a past president of the local Humane Society and Chris is board chair for the Washington State YMCA Youth and Government program. All have played roles in the success of projects ranging from scholarships to food drives, fundraisers to animal welfare concerns.

“The people of this community are extremely devoted when it comes to charitable causes,” says Chris. “We’re proud to be a part of that.”

Other members of the Koenig family bring a diverse range of talents to their business and their community as well. Bill, Sr.’s wife Carole, who also grew up in an automobile dealership family, has been involved with the accounting side of their business since it was estab-lished. Bill, Jr.’s wife, Leigh Ann, is a first-grade teacher and Chris’s wife, Liza, is a licensed pharmacist.

Chris also makes a vital contribution to the business with his legal training. A graduate of Valparaiso School of Law and past president of the Clallam County Bar Association, he practiced business and criminal law as a licensed attorney and deputy prosecutor and now brings his knowledge and experience to the dealership.

“We’re in the car business, but today’s world of regulations, record-keeping and reporting has brought the law and the automobile business together like never before,” said Chris. “It’s just a fact of life for car dealers.”

A look out at the panoramic view from their showroom attests to another fact of life – the good life - for the Koenig automotive family. The Strait of Juan de Fuca lies off to the north. The snow-capped Olympic Mountains soar to the south. The rain forest and Pacific Ocean are just a short drive away.

A special place for a special family. A place to be connected.

Bill Koenig, Sr.

Bill Koenig, Jr.

Chris Koenig

Phot

os b

y Ad

am B

ucha

nan

19

SPIRIT LocaL PageS [email protected]

(206) 289-7829

powered by

LInk your Dealership To 2,600 medIa SITeS.

A Research Primer for Automotive Business

Superheroes

20

WThere’s a scene in the original movie “Back to the Future” when Marty McFly is introduced to the famed DeLorean time machine by Doc and Einstein for the very first time, and Marty is very apprehen-sive on whether or not it will work. However, Doc assures Marty that he has put in countless hours of research, and successfully introduces time traveling to the world.

In the automotive business of today, the scenario is quite similar. We’re in a competitive environment and constantly faced with new challenges. So we quickly try to find all the data we can about our cus-tomers, competition and business environment. Then we educate ourselves with the research that’s avail-able, make a decision, and move in that direction.

As seasoned leaders, we’ve gathered years of professional experience that’s developed a sixth sense (or as my son likes to put it, a “Spider sense”) about the best way to move our businesses forward. But should you depend on your Spider sense to guide you through the treacherous competitive landscape? Sometimes yes; sometimes no. While we’ve mas-tered many of the business patterns in our field, we live in a world that’s constantly evolving. The task of research is to describe how the environment is changing, reduce uncertainty of your decisions, and keep sharpening your “Spider sense” to superhero accuracy.

SECONDARY RESOURCESMost of us turn to secondary resources as a staple of our research utility belt. Secondary resources report data that are readily available, but not necessarily gathered to answer a specific question. For instance, the U.S. Census is a secondary resource that is often analyzed to help answer a number of different ques-tions such as population distribution and household income.

If you want to dive deeper into a particular area, you can find reports that are equally reliable and respected. Many are accredited for their tightly con-trolled data collection methods and rigorous analyt-ics, accepted in their industry as the standard source.

In my line of work, Nielsen is considered the industry standard due to its increasingly sophisticated methodology of collecting data on television pro-gram viewership. All of our competitors accept this

By Jeff Kent Business Development ManagerComcast Spotlight – NW Region

SMART THINKING

Typical Research Methods, Pros & Cons

Objec:ve Observa:on: Measures observed volume, speed, frequency, etc.Pros: Very accurate and objec2ve.Cons: May be difficult to gather large meaningful datasets.

A/B Tes:ng: Comparing two iden<cal items with one variable change and no<ng differences.Pros: Increases incremental knowledge.Cons: Tests involving small groups of people are suscep2ble to bias and error; Difficult to gather large datasets.

Survey: Asking a series of ques<ons to a group of people.Pros: Efficiently gathers large datasets quickly; Quan2ta2ve results are easily analyzed.Cons: Highly suscep2ble to bias, misinterpreta2on or response error,

Focus Group: Asking a small representa<ve group of people to react in a controlled group seAng.Pros: Immediate qualita2ve feedback; May generate new ideas; Easy to assemble.Cons: Par2cipants easily influenced by moderator or par2cipants; Ar2ficial environment; Not easily projec2ble to a wider popula2on.

“The task of research is to describe how the environment is changing, reduce uncertainty of your decisions, and keep sharpening your ‘Spider sense’ to superhero accuracy.”

21

22

as the standard and subscribe to the service so that we can compare “apples to apples.” What’s more, by staying cur-rent with Nielsen data collection technologies, we’ve been able to show our clients more accurate data with sometimes surprising results.

For instance, when television viewers were surveyed to self-report their viewing habits using a paper diary, many television programs barely received any ratings (i.e. viewers). But when Nielsen began gathering audience data automatically through Local People Meters (meters that

viewers attached to their televisions), they found that people actually were watching some of those programs but never reported it. This showed that advertisers could, in fact, reach meaningful numbers of viewers with that program, and leverage that knowledge strategically.

In the automotive world, Polk research is recognized as the leading provider of automotive sales information. Polk gathers vehicle registration data by month, which shows

sales volume by make and model, geographic distribution of sales, as well as trends over time.

Cross- referencing Polk with other reliable sources, we can get a very accurate idea of how far people are willing to travel from their homes to an auto dealership to buy a car. That information can be important when an auto dealer is planning their next advertising campaign.

PRIMARY RESEARCHConducting primary research (a research study developed specifically to answer or validate a unique question) can yield deeply rich data. While it can be time consuming and expensive, this kind of focus on uncovering insights into your specific industry or customers can be rewarding.

The same criteria for evaluating a secondary resource applies to determining the quality of a primary research partner. Are they well-respected? Do they have expertise in your industry? Are they accredited by any independent organization?

Typical Research Methods, Pros & Cons

Objec:ve Observa:on: Measures observed volume, speed, frequency, etc.Pros: Very accurate and objec2ve.Cons: May be difficult to gather large meaningful datasets.

A/B Tes:ng: Comparing two iden<cal items with one variable change and no<ng differences.Pros: Increases incremental knowledge.Cons: Tests involving small groups of people are suscep2ble to bias and error; Difficult to gather large datasets.

Survey: Asking a series of ques<ons to a group of people.Pros: Efficiently gathers large datasets quickly; Quan2ta2ve results are easily analyzed.Cons: Highly suscep2ble to bias, misinterpreta2on or response error,

Focus Group: Asking a small representa<ve group of people to react in a controlled group seAng.Pros: Immediate qualita2ve feedback; May generate new ideas; Easy to assemble.Cons: Par2cipants easily influenced by moderator or par2cipants; Ar2ficial environment; Not easily projec2ble to a wider popula2on.

“The task of research is to describe how the environment is changing, reduce uncertainty of your decisions, and keep sharpening your ‘Spider sense’ to superhero accuracy.”

Leading Business Research and Analy3c Resources

•@Plan – Online media data• ABC Audit – Newspaper circula8on data

• ComScore – Online views and demographic informa8on

• Google Analy8cs – Website measurement

• Kantar – Compe88ve media spending data

• Nielsen – Television audience data• Open AdSource – Online ad click-‐through repor8ng

• Pew Research – A non-‐par8san “fact tank” on American issues, aKtudes and trends.

• Polk – Auto registra8on data by month

• RHIZA – Data mapping tool and segmenta8on system

• Scarborough – Syndicated consumer behavior study

• U.S. Census – U.S. Popula8on and Demographic Report

23

IT’S ALWAYS AN ESTIMATEIt’s important to note that no matter how well research is conducted, or how reputable the source, it will always be an estimate. There is no researcher worth their salary who will say that they are 100% certain of the results that they’ve found. There will always be a margin of error due to bias and human error. The key is to reduce that margin of error to a point that you are confident in your decisions. This can be done through large datasets of a specific population, careful data gathering methodologies, and other sophisticated research techniques. In the end, your Spider sense will need to let you know when you’re good to go.

FIND YOUR SOURCESAs I mentioned, finding research is easy. Finding good research is a little more challenging. Fortunately, there are a number of reliable resources that you can turn to quickly and easily.

The first, and one that’s often overlooked, is your media partner. Media groups subscribe to a variety of industry-standard sources and can help with analyt-ics that illuminate insights into consumer behavior, buying patterns, and media habits. This is a great way to take deep dives into a variety of resources without having to purchase, aggregate and analyze the resourc-es yourself.

But don’t underestimate the wealth of information at the good ol’ public library. The library is a treasure trove of reliable resources and data, and librarians are masters at finding specific data, reports and analytics that could have a tremendous impact on your business.

KEEP RESEARCH IN YOUR SIGHTSMaking decisions and judgment calls at today’s pace of business is a vital part of business management and leadership. But don’t lose sight of the power that research has to help support your decisions, and reveal strengths and opportunities.

Now, I can’t promise that you’ll develop the busi-ness equivalent of x-ray vision or the power to predict the future. But having research in your utility belt will give you the power to forge a strategic path through an ever changing competitive landscape.

ManagingBy The

NUMBERS

24

Every dealer and dealership man-ager has been exposed to many different benchmarks over the years by which to compare their individual operations to a set of standards that have become what we all refer to as, “industry benchmarks.” While some of these measurements vary by the type of franchise you operate, there are many that do not. The entire thrust of this article is to identify some of these key bench-marks for the variable depart-ments for you to use as a quick reference guide. These auto in-dustry guidelines were gathered largely from, and published by, the CPA’s at Auto Team America.

EManagingBy The

By Scott Dreisbach

NUMBERS

25

DOMESTIC IMPORT HIGHLINENEW VEHICLE DEPARTMENTSales GuidelinesNew vehicles days supply 75 60 45No units older than (in days) 180 98 57Sales units per salesperson (N) 9 10 10Front end gross per unit-cars $1,403 $1,082 $2,480Front end gross per unit-trucks $1,723 $1,449 $2,654Sale ratio new to used 1.3:1 1.8:1 2.9:1

Gross GuidelinesGross profit as a % of sales 5.7% 5.0% 6.2%F&I penetration rate (including lease) 67.6% 66.1% 63%Insurance penetration percentage 17.6% 13.3% 9.0%Extended service contract penetration 35.6% 31.6% 13.7%Finance gross per financed vehicle $641 $570 $905Insurance gross per insured vehicle $489 $366 $264Ext service gross per contract $901 $685 $935

Expense GuidelinesSales comp as a % of vehicle GP 23.6% 20.6% 18.3%Supervision as a % of vehicle GP 17.4% 16.0% 9.3%F&I comp as a % of F&I income 15.8% 15.3% 23.0%Personnel exp as a % of GP 46.1% 46.5% 36.1%Advertising as a % of GP 17.8% 16.8% 12.9%Advertising per retail unit sold $266 $277 $396 Floor Plan as % of GP 14.4% 8.4% 6.9%

26

DOMESTIC IMPORT HIGHLINEUSED VEHICLE DEPARTMENTSales GuidelinesUsed vehicles days supply 45 45 37No units older than (in days) 60 60 45Sales units per salesperson (U) 10 11 13Front end gross per unit-cars $1,83 $1,793 $2,203Front end gross per unit-trucks $2,200 $1,609 $1,830

Gross GuidelinesGross profit as a % of Sales 13.1% 8.8% 8.4%F&I penetration rate 64.1% 54.5% 54.3%Insurance Penetration % 22.1% 21.3% 10.50%Extended service contract penetration 40.9% 36.7% 29.7%Finance gross per financed vehicle $589 $562 $660Insurance gross per insured vehicle $396 $338 $350Ext service gross per contract $869 $793 $788

Expense GuidelinesSales comp as a % of vehicle GP 23.8% 21.5% 25.2%Supervision as a % of vehicle GP 14.4% 13.3% 13.7%F&I comp as a % of F&I income 13.6% 19.2% 21.2%Personnel exp as a % of GP 37.9.% 46.9% 46.9%Advertising as a % of GP 15.9% 11.7% 10.6%Advertising per retail unit sold $283 $238 $291 Reconditioning-cars $773 $780 $788Reconditioning-trucks $818 $528 $486

27

ADDITIONAL KEY GUIDELINES-INVENTORY MANAGEMENT

As many of you know, I have been specializing in vehicle inventory management systems for the past 15 years. Over that time many key guidelines and money- making ideas have emerged and the importance of precise vehicle inventory man-agement has never been more clearly defined than it is today. It is well known (especially by those who have not ignored it) that precise vehicle inventory management can be the difference in whether or not we operate our stores at a profit or loss.

The first principle (and a concept that is difficult for many managers to get their head around) is that the investments in ve-hicle inventories are no different than any other type of invest-ment portfolio. Some investments clearly perform better than others. You have made these investments expecting a return on investment. (ROI) It is only natural that when a specific portion of your investment portfolio is producing a significant and rapid return, you would want to do more of it. Conversely, when other portions of your investment portfolio are underperform-ing, you would want to do less of it. The secret to growing your ROI and maximizing this profit center is to know exactly what each individual investment has done for you in the past, what it is doing for you now, and how the investment needs to be re-structured to grow the ROI in the future.

An example of the financial impact to your bottom line that you can achieve for your new vehicle inventories is as follows: # New units sold on an average month 65# New unit inventory for an average month 200Average cost per new unit $29,655Current floor plan interest rate 6.25%

When you crunch these three simple numbers here is what you will find:

Your current day supply of inventory is 95. If you can get your inventory down to a 90-day supply you will release frozen capital of $148, 275.00 and have a direct savings of $9,267.00 per year. If you reduce your day supply to 75 you would release $1,112,062.00 resulting in a direct savings of $69,503.00. Bet-ter yet, by operating on a 60- day supply of new vehicles you would free up $2,075,850.00, earning you an interest savings alone of $129,740.00. This is not a pipe dream. Many dealer-ships are doing this. This does not include the additional gross you will capture by having a quicker turning inventory or, the

direct expense savings you will realize by the reduction in policy, and delivery expense. (The clients I work with typically see an additional gross of $100.00 per unit and this would mean another $78,000.00 per year for this example store.)

Similar savings can result for your used vehicle department by achieving the target day supply of 37.

The three principle ingredients of any good vehicle inven-tory management system designed to quickly give information to management that will lead to direct results and help accomplish the following are: 1) To continually phase in what we need and phase out what we do not based on facts. 2) Make it easy to read, use and understand. 3) Recommend some specific action that needs to be taken. 4) Make decisions based on actual data, not “gut feel.”

To fully develop the potential of this additional “profit cen-ter,” you need to have several key pieces of information for ev-ery single one of your investments. This information does exist in your DMS, regardless of brand. The hard part for dealerships seems to be the ability to assemble this information, update it every day, develop and implement action plans and monitor the results. In other words, you need an automated, reliable, ongo-ing vehicle inventory management system. You would never allow your parts inventory investment to be managed without a system. How is your vehicle inventory any different?

If you would like to see what kind of revenue impact could be achieved for your store, or would like to learn more about automated vehicle inventory management systems, simply drop me an E-mail and I will send you the revenue impact calculator file for you to plug in your own numbers and see for yourself what potential awaits you.

Whatever you decide, it is clear that precise vehicle inven-tory management is here to stay and the sooner you take a pro-active approach to this all important topic, the sooner you will begin to realize the positive financial impact in your operation.

Scott Dreisbach is Vice President of Valuinsight, Inc. Contact him at www.valuinsight.com,[email protected] 561 368 7810 X108 or 561 404 8450 direct.

28

©20

12 Au

toTra

der.c

om, I

nc. A

ll Ri

ghts

Rese

rved

. “Au

toTra

der.c

om” i

s a re

giste

red

trade

mar

k of T

PI H

oldin

gs, I

nc. u

sed

unde

r exc

lusiv

e lice

nse.

Looking for research, insights about online marketing or

merchandising best practices? Find all this information

and more at DealerLearningCenter.com.

LEARN MORE. EARN MORE. 29

?What Defines A Good Leader

Hints from those we know!

30

HHenry Ford once said, “If you think you can do a thing or think you can’t do a thing, you’re right.” Martin Luther King reminds us that “A genuine leader is not a searcher for consensus but a molder of consensus.” Nelson Mandela says, “It is better to lead from behind and to put others in front, especially when you celebrate victory when nice things occur. You take the front line when there is danger, and then people will appreciate your leadership.”

Colin Powell tells us that “Leadership is solving problems.” The day those you lead stop bringing you their problems is the day you have stopped leading them. They have either lost confidence that you can help or conclude you do not care,” suggests Powell.

“Effective leadership is not about making speeches or being liked; leadership is defined by results, not attributes,” says Peter Drucker. “A leader is best when people barely know he exists,” reminds Lao Tzu. He says, “when a leader’s work is done, his aim fulfilled, they will say: we did it ourselves.”

“Don’t be afraid to give up the good to go for the great,” adds John D. Rockefeller. “Good leadership consists of

showing average people how to do the work of superior people.” “Example is leadership,” says Albert Schweitzer. “Leadership is the ability to translate vision into reality,” adds Warren G. Bennis. “Outstanding leaders go out of their way to boost the self-esteem of their personnel,” says Sam Walton. “If people believe in themselves, it’s amazing what they accomplish.”

The best thing for a leader to be is a yardstick of quality, says Steve Jobs. “Some people,” he said, aren’t used to an environment where excellence is expected. “But,” cautions W. Clement Stone, “be careful of the environment you choose for it will shape you; and be careful of the friends you choose for you will become like them.”

Again, Henry Ford says, “Don’t find fault, find a remedy.” “At one time leadership meant muscle,” reminds Mahatma Gandhi. “But, today,” he says, “it means getting along with people.”

Henry Ford once said, “If you think you can do a thing or think you can’t do a thing, you’re right.”

31

32

Peter Druker says, “Management is doing things right; leadership is doing the right things.” “Effective leadership is putting first things first,” adds Stephen Covey. Effective management is discipline,” he continues.

“Leadership is the art of getting someone else to do something you want done because he wants to do it,” says former U.S. President Dwight d. Eisenhower. “A man always has two reasons for doing anything,” says J.P. Morgan, “a good reason and a real reason.” “Leadership is unlocking people’s potential to become better,” says Bill Bradley.

Steve Jobs says, “Innovation distinguishes between a leader and a follower.” “A man who wants to lead the orchestra must turn his back on the crowd,” says Max Lucado. Mitt Romney adds, “Leadership is about taking responsibility, not making excuses.” Henry Ward Beecher encourages people to hold themselves “for a higher standard than anybody expects of you [and] to never excuse yourself.”

“Affirmation without discipline is the beginning of delusion,” reminds John Rohn. “A leader is one who knows the way, goes the way, and shows the way,” says John C. Maxwell. “A leader is hope,” says Napoleon Bonaparte. “Leadership cannot really be taught; it can only be learned,” says Harold S. Geneen. “People ask the difference between a leader and a boss,” said Theodore Roosevelt. “The leader leads, and the boss drives,” he continues. Geneen adds that, “Leadership is practiced not so much in words as in attitude and in actions.” “A good leader takes a little more than his share of the blame, a little less than his share of the credit,” says Arnold H. Glasgow. “No man will make a great leader who wants to do it all himself or get all the credit for doing it,” says Andrew Carnegie. “Leaders must be close enough to relate to others, but far enough ahead to motivate them,” suggests John C Maxell.

“How we think shows through in how we act,” says David Joseph Swartz. “Attitudes are mirrors of the mind. They reflect thinking,” he concludes. “If you have ideas,” says

Harvey S. Firestone, “you have the main asset you need, and there isn’t any limit to what you can do with your business and life. Ideas are any man’s greatest asset,” concludes Firestone.

“The supreme quality for leadership is unquestionably integrity,” says Dwight D. Eisenhower. “Without it, no real success is possible, no matter whether it is on a section gang, a football field, in an army, or in an office. You don’t lead by hitting people over the head; that’s assault, not leadership.”

“Leadership is the privilege to better the lives of others,” says Mwai Kibaki. “If you command wisely,” says Thomas Fuller,” you’ll be obeyed cheerfully.”

Outstanding leaders go out of their way to boost the self-esteem of their personnel.

Sam Walton“

ENVIRONMENTAL COMPLIANCE & REMEDIATION INC.

SERVICES:

Workers Safety ServicesEnvironmental Services

ISO Services

Expertise in the following industries:

• Automobile• BioTech• Chemical• Construction• Industrial• Manufacturing• Medical• Technical

ECR offers an online web tracking system called Workplace Risk Management System (WRMS) used to manage critical aspects of safety in the workplace including Safety Training Tracking, Facility Safety Auditing, Safety Documents Repository and Material Safety Data Sheet Database. All clients are provided access to the WRMS system.

If you would like us to do a no cost/no obligation on-site assessment and review, please

call for an appointment at 800-800-7644 x201

or you can email [email protected]

to schedule an appointment.

Mention this ad and receive a complimentary safety audit!

ECR Inc.540 Lennon LaneWalnut Creek, CA 94598-2415Toll Free Phone: 800-800-7644Toll Free Fax: 888-888-7329www.ecrinc.comwww.disasterrecoverystore.com

ECR has the largest number of certified Safety professionals on staff. A safe workplace can increase worker productivity, decrease liabilities and lower the cost of business operations. Our expertise backed by insurance and regulatory studies shows that frequency and severity of workplace accidents and illnesses can be reduced, or even eliminated, through informed planning and education.

Fragile and irreplaceable, the environment is

important to all of us. We are constantly struggling

for find the perfect balance between the economy and

the environment.

ECR’s vision is to demand consistent exemplary effort from all available resources in order to be recognized by our customers as their only source for environmental, health and safety compliance and waste management.

“I have found ECR to be professional, well informed in the safety regulations relating to our industry, and to have extensive field experience in dealing with large projects.” Safety Coordinator, Bay Area Auto Dealership

“ECR offers a cost effective health and safety solution, and their recommendations are right on target.”

Safety Manager, Washington Marina

Environmental engineers have helped

hundreds of businesses with numerous safety, compliance

and liability issues:

• JOB SAFETY ANALYSIS• WRITTEN PROGRAMS• RECORD KEEPING• AUDITING SERVICES• RISK MANAGEMENT• TRAINING PROGRAMS• TIER I AND TIER II PROGRAMS

33

A&E AMC B

ravo CNBC C

NN Comedy Central D

iscovery E! E

SPN FOOD Network F

ox News FX G

olf Channel Hallmark Channel H

eadline News HGTV M

SNBC MTV N

ational

Geographic Channel NBC Sports Network N

FL Network Nickelodeon O

xygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A

&E

AMC Bravo C

NBC CNN C

omedy Central Discovery E

! ESPN F

OOD Network Fox News F

X Golf Channel H

allmark Channel Headline News H

GTV MSNBC M

TV National Geo-

graphic Channel NBC Sports Network N


xygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC

Bravo CNBC C

NN Comedy Central D

iscovery E! E

SPN FOOD Network F

ox News FX G


eadline News HGTV M

SNBC MTV N

ational Geographic

Channel NBC Sports Network N


xygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC Bravo

CNBC CNN C


! ESPN F


X Golf Channel H


GTV MSNBC M

TV National Geographic Channel

NBC Sports Network NFL Network N

ickelodeon Oxygen S

peed TBS T

LC TNT T

ravel Channel truTV T

V Land USA Network V

H1 We X

FINITY.com A&E AMC B

ravo CNBC

CNN Comedy Central D

iscovery E! E

SPN FOOD Network F

ox News FX G


eadline News HGTV M

SNBC MTV N

ational Geographic Channel NBC

Sports Network NFL Network N

ickelodeon Oxygen S

peed TBS T

LC TNT T



H1 We X


ravo CNBC C

NN

Comedy Central Discovery E

! ESPN F


X Golf Channel H


GTV MSNBC M

TV National Geographic Channel N

BC Sports

Network NFL Network N

ickelodeon Oxygen S

peed TBS T

LC TNT T



H1 We X


ravo CNBC C

NN Come-

dy Central Discovery E

! ESPN F


X Golf Channel H


GTV MSNBC M


BC Sports Network

NFL Network Nickelodeon O

xygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC Bravo C

NBC CNN C

omedy Central

Discovery E! E

SPN FOOD Network F

ox News FX G


eadline News HGTV M

SNBC MTV N

ational Geographic Channel NBC Sports Network N

FL Net-

work Nickelodeon O

xygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC Bravo C

NBC CNN C

omedy Central Discov-

ery E! E

SPN FOOD Network F

ox News FX G


eadline News HGTV M

SNBC MTV N


FL Network

Nickelodeon Oxygen S

peed TBS T

LC TNT T



H1 We X


ravo CNBC C

NN Comedy Central D

iscovery E!

ESPN FOOD Network F

ox News FX G


eadline News HGTV M

SNBC MTV N


FL Network Nickelodeon

Oxygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC Bravo C

NBC CNN C


! ESPN

FOOD Network Fox News F

X Golf Channel H


GTV MSNBC M


BC Sports Network NFL Network N

ickelodeon Oxy-

gen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC Bravo C

NBC CNN C


! ESPN F

OOD

Network Fox News F

X Golf Channel H


GTV MSNBC M



ickelodeon Oxygen

Speed TBS T

LC TNT T



H1 We X


ravo CNBC C

NN Comedy Central D

iscovery E! E

SPN FOOD Net-

work Fox News F

X Golf Channel H


GTV MSNBC M



ickelodeon Oxygen S

peed

TBS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC Bravo C

NBC CNN C


! ESPN F

OOD Network Fox

News FX G


eadline News HGTV M

SNBC MTV N



xygen Speed T

BS

TLC TNT T



H1 We X


ravo CNBC C

NN Comedy Central D

iscovery E! E

SPN FOOD Network F

ox News

FX Golf Channel H


GTV MSNBC M



ickelodeon Oxygen S

peed TBS T

LC

TNT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC Bravo C

NBC CNN C


! ESPN F


X

Golf Channel Hallmark Channel H

eadline News HGTV M

SNBC MTV N



xygen Speed T

BS TLC T

NT

Travel Channel truTV T


H1 We X


ravo CNBC C

NN Comedy Central D

iscovery E! E

SPN FOOD Network F

ox News FX G

olf

Channel Hallmark Channel H

eadline News HGTV M

SNBC MTV N



xygen Speed T

BS TLC T

NT Travel

Channel truTV T


H1 We X


ravo CNBC C

NN Comedy Central D

iscovery E! E

SPN FOOD Network F

ox News FX G

olf Channel

Hallmark Channel Headline News H

GTV MSNBC M



ickelodeon Oxygen S

peed TBS T

LC TNT T

ravel Channel

truTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC Bravo C

NBC CNN C


! ESPN F


X Golf Channel H

allmark

Channel Headline News H

GTV MSNBC M



ickelodeon Oxygen S

peed TBS T

LC TNT T

ravel Channel truTV

TV Land USA Network V

H1 We X


ravo CNBC C

NN Comedy Central D

iscovery E! E

SPN FOOD Network F

ox News FX G

olf Channel Hallmark Channel

Headline News HGTV M

SNBC MTV N



xygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land

USA Network VH1 W

e XFINITY.com A&E A

MC Bravo C

NBC CNN C


! ESPN F


X Golf Channel H

allmark Channel Headline

News HGTV M

SNBC MTV N



xygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Net-

work VH1 W

e XFINITY.com A&E A

MC Bravo C

NBC CNN C


! ESPN F


X Golf Channel H

allmark Channel Headline News

HGTV MSNBC M



ickelodeon Oxygen S

peed TBS T

LC TNT T


V Land USA Network

VH1 We X


ravo CNBC C

NN Comedy Central D

iscovery E! E

SPN FOOD Network F

ox News FX G


eadline News HGTV

MSNBC MTV N



xygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e

XFINITY.com A&E AMC B

ravo CNBC C

NN Comedy Central D

iscovery E! E

SPN FOOD Network F

ox News FX G


eadline News HGTV M

SNBC

MTV National Geographic Channel N


ickelodeon Oxygen S

peed TBS T

LC TNT T



H1 We X

FINITY.

com A&E AMC B

ravo CNBC C

NN Comedy Central D

iscovery E! E

SPN FOOD Network F

ox News FX G


eadline News HGTV M

SNBC MTV

National Geographic Channel NBC Sports Network N


xygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com

A&E AMC B

ravo CNBC C

NN Comedy Central D

iscovery E! E

SPN FOOD Network F

ox News FX G


eadline News HGTV M

SNBC MTV N

ational

Geographic Channel NBC Sports Network N


xygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A&E

AMC Bravo C

NBC CNN C


! ESPN F


X Golf Channel H


GTV MSNBC M

TV National Geo-

graphic Channel NBC Sports Network N


xygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC

Bravo CNBC C

NN Comedy Central D

iscovery E! E

SPN FOOD Network F

ox News FX G


eadline News HGTV M

SNBC MTV N

ational Geographic

Channel NBC Sports Network N


xygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC Bravo

CNBC CNN C


! ESPN F


X Golf Channel H


GTV MSNBC M

TV National Geographic Channel

NBC Sports Network NFL Network N

ickelodeon Oxygen S

peed TBS T

LC TNT T



H1 We X


ravo CNBC

CNN Comedy Central D

iscovery E! E

SPN FOOD Network F

ox News FX G


eadline News HGTV M

SNBC MTV N

ational Geographic Channel NBC

Sports Network NFL Network N

ickelodeon Oxygen S

peed TBS T

LC TNT T



H1 We X


ravo CNBC C

NN

Comedy Central Discovery E

! ESPN F


X Golf Channel H


GTV MSNBC M


BC Sports

Network NFL Network N

ickelodeon Oxygen S

peed TBS T

LC TNT T



H1 We X


ravo CNBC C

NN Come-

dy Central Discovery E

! ESPN F


X Golf Channel H


GTV MSNBC M


BC Sports Network

NFL Network Nickelodeon O

xygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC Bravo C

NBC CNN C

omedy Central

Discovery E! E

SPN FOOD Network F

ox News FX G


eadline News HGTV M

SNBC MTV N


FL Net-

work Nickelodeon O

xygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC Bravo C

NBC CNN C

omedy Central Discov-

ery E! E

SPN FOOD Network F

ox News FX G


eadline News HGTV M

SNBC MTV N


FL Network

Nickelodeon Oxygen S

peed TBS T

LC TNT T



H1 We X


ravo CNBC C

NN Comedy Central D

iscovery E!

ESPN FOOD Network F

ox News FX G


eadline News HGTV M

SNBC MTV N


FL Network Nickelodeon

Oxygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC Bravo C

NBC CNN C


! ESPN

FOOD Network Fox News F

X Golf Channel H


GTV MSNBC M



ickelodeon Oxy-

gen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC Bravo C

NBC CNN C


! ESPN F

OOD

Network Fox News F

X Golf Channel H


GTV MSNBC M



ickelodeon Oxygen

Speed TBS T

LC TNT T



H1 We X


ravo CNBC C

NN Comedy Central D

iscovery E! E

SPN FOOD Net-

work Fox News F

X Golf Channel H


GTV MSNBC M



ickelodeon Oxygen S

peed

TBS TLC T

NT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC Bravo C

NBC CNN C


! ESPN F

OOD Network Fox

News FX G


eadline News HGTV M

SNBC MTV N



xygen Speed T

BS

TLC TNT T



H1 We X


ravo CNBC C

NN Comedy Central D

iscovery E! E

SPN FOOD Network F

ox News

FX Golf Channel H


GTV MSNBC M



ickelodeon Oxygen S

peed TBS T

LC

TNT Travel Channel t

ruTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC Bravo C

NBC CNN C


! ESPN F


X

Golf Channel Hallmark Channel H

eadline News HGTV M

SNBC MTV N



xygen Speed T

BS TLC T

NT

Travel Channel truTV T


H1 We X


ravo CNBC C

NN Comedy Central D

iscovery E! E

SPN FOOD Network F

ox News FX G

olf

Channel Hallmark Channel H

eadline News HGTV M

SNBC MTV N



xygen Speed T

BS TLC T

NT Travel

Channel truTV T


H1 We X


ravo CNBC C

NN Comedy Central D

iscovery E! E

SPN FOOD Network F

ox News FX G

olf Channel

Hallmark Channel Headline News H

GTV MSNBC M



ickelodeon Oxygen S

peed TBS T

LC TNT T

ravel Channel

truTV TV Land U

SA Network VH1 W

e XFINITY.com A&E A

MC Bravo C

NBC CNN C


! ESPN F


X Golf Channel H

allmark

Channel Headline News H

GTV MSNBC M



ickelodeon Oxygen S

peed TBS T

LC TNT T

ravel Channel truTV

TV Land USA Network V

H1 We X


ravo CNBC C

NN Comedy Central D

iscovery E! E

SPN FOOD Network F

ox News FX G

olf Channel Hallmark Channel

Headline News HGTV M

SNBC MTV N



xygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land

USA Network VH1 W

e XFINITY.com A&E A

MC Bravo C

NBC CNN C


! ESPN F


X Golf Channel H

allmark Channel Headline

News HGTV M

SNBC MTV N



xygen Speed T

BS TLC T

NT Travel Channel t

ruTV TV Land U

SA Net-

OWN YOUR ZONE

Source: Polk Insight sales within Comcast Spotlight geographies in the Seattle DMA among the top 50 dealers. December 2011 – November 2012 new vehicle registrations.

Advertising Waste

79% of a dealer’s new car sales come from just 4 cable zones*

New Car Buyers

with fuel-efficient ad performance

comcastspotlight.com

Whidbey

Echo Lake

Click

Rainier

Mt. RainnieierrNNa ’t’l. PPararkk

North CascadesNat’l. Park

PAC

IFIC

OC

EA

N L E W I S

EEEEEE RRRRRRR CCCCCCC EEEER C E

HHH OOHH OOO MMM III SSS HHO

SS KK AA GG I TT

W HH AT C O M

SSSSSS JJJJJJ UUUUUUUUS A N J US A N S A N U A NU A

IIIIIIII SSSSSSSSSSS LLLL NNNNN DDDDDDDDDDDDL A N DL AA NNL A NL A NL A N

TT HH U RR SS TOO NNN

PA C I F I C

G R AY SH A R B O R

J E F F EE R S OO N

C L A L

O M A SS OOKKK II TTTT SSSSS AAAA PPT

WA H K I A K U M

PPAACC

IFFICC

OOCC

EEAA

NN

Whatcom

Skagit

DDDDDDN DA NNNNSkagit

Skagit

LaConner

PortTownsend

SouthSnohomish

Bellevue-Issaquah

NorthSnohomish

Federal Way

(Downtown)

ClCliClClickkckTacoma

East Pierce

Kitsap

AA PKitsap

Tacoma

Burien

Grays Harbor

H A R B OGraysHarbor

GraysHarbor

GraysHarbor H b

OceanShores

Port Angeles

Port Angeles

Thurston

Thurston

PortOrchard

Camano

SSSSSS NNNNN OOOOOOOOO HHHO HHNorthSnohomish

O NNNNO HoodCanal

PPPPPPPPPPPPPP IIIIIPPPPPPPPEast Pierce

o o s

(Downtown)

E t Pi

Olympia

Tacoma

Centralia

EEEverett

Bellingham

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

KK III NNN GGGGK I N GGFederal Way

sap

wn)nwn)n

Bellevue-Issaquah

Burien

Burien

aTTTTT

amaaa

TacaccomomaomaTTTTTTTTTT

Tacoma

Bellevue

RedmondWoodinville

Zone

SouthhSSnohomishS hSnohom hm

NSnoS o

(Doowntow

verettE

Snohomish (Downtowowntow

PPPoorrToowownnsnseennd

KKitsasaap

BellPPPortt

B

Zone your on-air and online message where your auto buyers are coming from

To get in the driver’s seat, contact Jeff Kent206-270-4748 [email protected]

34

35

HT Here are the top six biggest eMail frustrations! Are you guilty?

1. Poor spelling and grammar

2. Unrelated subject lines

3. Forwarding unrelated messages (Ouch that can be bad!)

4. All caps. (It’s OK when you’re excited in a positive way; not necessary other times.)

5. Reply to all when not necessary and

6. Messages that are way too long

We are all aware we could probably name six more offenses and frustrations. However, these top six keep coming up to the top time and time again. We believe they are the best of the worst. Keep them in mind as you email.

Live Chats on the Web! Are you cutting your customers short?

If your company is using live chat online, here are a few tips that will help you and the person on the other end:

A Telephone Doctor survey shows a live chat conversation will end up in a phone call nearly 50% of the time. What does that say to you? Well, it says to me, the conversation didn’t go the right way. More help was needed. That’s because the written word can often be mistaken for some-thing it wasn’t meant to be.

Are Your eMails, Chats and SpellingTarnishing Your Image?

By Nancy FriedmanThe Telephone Doctor

37

That being said, as many of you recall, The Telephone Doctor started out as an expert in telephone skills. As the other touch points of communication came along, we fine- tuned our tips, skills, and techniques to help email, voice mail, snail mail, fax and face-to-face. (Texting is left out for now, because it’s not in the mainstream just yet. Certainly there may be clients who prefer a text, but in the office/business world it’s not “there” quite yet.)

Back to the live chat line. For those not familiar with live chat, simply put, it’s servicing and communicating with cus-tomers, one-on-one, via a web-based site online. It’s email in real time. In reading some of the printed live chats from clients and customers it was very clear to me, the biggest problem was: the personality is missing.

It appears the company person goes directly into a “robot mode.” Yes. No. And a lot of one and two word answers. No smiley faces. Nothing that says, “Hey, I’m human” or “I care.”

While we’re not looking for answers that rival Gone with the Wind, we do know that three words make a sentence. We also know one word answers are considered rude and cold.

If you’re using live chat, think of the person you’re communicating with as sitting right across the desk from you and talk with them. Not down to them.

We found another BIG concern on live chat and email are the words many of us confuse day after day. Which is your albatross?

Here they are: • You’re - Your• There - Their - They’re• Grateful - Greatful• To - Too - Two• Hear - Here• Seamless - Seemless• Know - No - Now• Effect - Affect• When to use I vs. me

The list goes on and on. I’m about to give you the absolute best answer for never making these mistakes again. Ever!

When in Doubt – Leave It Out

If you’re writing an email or doing live chat and aren’t sure which ‘word’ is correct, use a totally different word.

Example. I found myself mixing up ‘greatful’ and “grateful’. As in: “It was a great party. Thank you.” and “I am very grateful for this opportunity.” So rather than worry if I used the right word or not, now I say, “It was a fabulous party. And I am so appreciative for this opportunity.”

Remember, ‘when it doubt, leave it out.’ While we often don’t think others will mind these errors, they do. They wonder about our credibility; our intelligence; our thoughtfulness.

Nancy Friedman, president of Telephone Doctor, is a featured speaker at association and corporate meetings. For an information packet on Nancy, please email [email protected] or call 314.291.1012. [email protected]

38

State Farm Mutual Automobile Insurance Company, State Farm Indemnity Company, Bloomington, IL

statefarm.com®

1103203 12/11

You could find yourself saving like a champion, with discounts that can add up to and be worth hundreds of dollars.

GET TO A BETTER STATE.™ CALL AN AGENT OR VISIT US ONLINE TODAY.

Do the Discount Double Check.™

*Discounts may vary by state.

Get more than a quarter back.

40% *

39

© 2012 Classified Ventures, LLC™. All rights reserved.

SO SHOULD YOU.Independent dealers, franchise dealers—we don’t play favorites. Only Cars.com offers inventory listings based entirely on what shoppers search for, not how many dollars you spend. That’s how we show you results. More importantly, that’s how we earn your trust.

To learn more about partnering with Cars.com, contact JIM JOLY. Call 206.448.3174 or email [email protected].