What's New....

Our BDC delivers 101 units in one month..

Yup that's right one of our BDC's did 101 units last month.  Pick up the phone and call me to find out how.

 

We always ask one simple questions when we work with a new dealer.  "Why not this store?"  Why is this not the best dealer in the area, are the people wrong, is the location bad, is the management team un-committed? 

Just a few of the questions we ask. 

What we most often find is that the team is not "pulling together".  Process are not in place or nonexistent.  Accountability is missing and everybody wants to go to heaven but nobody wants to die.  Okay, we don't really mean die, but you get the picture.

 

Let us help you make the change neccessary to GROW.  What are you waiting for?

 

Patrick Ritschel

 

What a great week in Orlando.

It's not just more of the same!  This year's NADA convention is over and now that all the speculation about attendance is over, here is what we know.  It was like a cold rainy day at the dealership, and we had traffic.  Serious, purposeful traffic, dealers and managers on a mission.

This year we were invited to do a workshop.  We chose to do one of our most requested workshops.  Guaranteed Phone Success.  This workshop is designed for Dealers andManagers who need some help with phone skills.  Some dealerships have a BDC, others use the Sales Team, or a dedicated Internet department.  It matters not which you have.  Guaranteed Phone Success was the workshop to attend.

Our first workshop was Friday at 1:30pm.  Remember that the convention does not kick off till Saturday.  We had over 100 in attendance, way beyond our expectations.  Saturday's workshop was recorded, (see NADA on-line university) and we had double that in attendance.  Sunday we spent the day in the booth talking to dealers and old friends about how things were and how we could help them not just survive in this market but also how to really GROW.  Our last workshop was Monday morning at 8:30 and again, over 100 in attendance.  Yup, Monday morning after all the receptions, at 8:30 in the morning over 100 dedicated managers and dealers from over 6 different countries all learning about how to use the phone an create and build lasting relationships.

That's what sets our training apart from our competitors, it's the relationship.  The relationship we have with our clients and their desire to have a long standing relationship with their customers.

To learn more about our training pick up the phone and give us a call, there is never a fee to see if we can help you grow your business.

Good selling!

Patrick Ritschel

 

"I refuse to recognize that there are impossibilities.  I cannot discover that anyone knows enough about anything on this earth definitely to say what is and what is not possible".  

Henry Ford

 

At Ritschel & Associates we agree!

As an industry we need to get on with the business of helping people buy cars.   There are some really good reasons for dealers to be nervous.  There are many more reasons dealers need to get their act together.  Now is the time for back to basics, Road to the Sale processes, Phone ups that are managed, appointments that are confirmed and  Sales Managers who are hands on, helping Sales Consultants, help customers, find a reason to buy now.  

We think it's time dealers start asking some good questions.  Take a look at the following list.  If you can't answer each line with confidence call us.  We will try and help, no charge, no obligation.  

What does your Internet Sales Process look like? 

How Many Internet Leads do you get a month?

How many phone ups in a month?

What are your Phone up conversion ratios?

What is your Be-Back ratio?

Are Referrals a major part of your Sales Team's business every month?

What are you doing to hold your sales team accountable for the customers they already have? 

If you don't know anything more than what the customer bought, when, and how much money you made, you are leaving opportunities on the table.

Give us a call, we are here to help!

Patrick Ritschel

President

March 2009

 

"If I hear one more sales person give yet another reason why they can't sell cars I am going to have a fit”. 

 

My father-in-law bought his first dealership in 1982 to a chorus of people quite sure he was nuts; business conditions were abysmal.  Not so much now.  He built his business on sound forthright business practices.  He told the truth, made deals happen and became a fixture in the community.  He helped 1000s of people buy cars and now he owns the air in the tires -not the bank. 

 

Sure things are tough, that’s when the tough get to work!  And the weak get out.  We have seen the closure of several long time dealers, some of them huge operations, who in my opinion spent the last several years taking advantage of the market andthe OEM.  You can’t trick people into buying cars now.  You have to “help them buy cars”.

 

When I started in the business in the 80’s we were seeing many of the same circumstances we are now. 

 

Some of the “excuses” I am hearing…

 

"The banks aren't buying" - Yes they are, just not like they were, so change what you are doing.  One of the best things about the automotive industry is the talented people in it know how to adapt.  They get creative, so stop whining and start thinking about how you are going to do things differently.  Think outside the box; make every decision with the intent of beating last year’s numbers.  Set goals, real goals. Make a plan, write it down, stick to it, and change as necessary.as

necessary
"Traffic is down" - I don’t buy that for a moment.  Sure, “floor traffic” is down, but I am still seeing as many or more phone ups coming into dealerships.  Salespeople are still weak, if not weaker than in years past, where phone skills are concerned.  Additionally I will tell you that the score keeping has diminished. Maybe we just don’t want to know how bad we really are.

Internet lead volume is steady or up slightly.  Especially dealer organic site traffic.  Get your butt to work. Get on the phone, get in several social networks, and develop an evidence manual, on line and hard copy, and work harder.  Like Larry Winget says, “It’s called work for a reason”.

"The deals aren't as good" - Says who?  Oh Please… I have never seen discounts as deep as they are right now.  Cars have always been expensive and they have always cost more than the customer told you they wanted to pay... so now you are going to start believing the customer?  When exactly do you think the customer will come into your dealership and offer to pay more than $250.00 @ month with no money down while being $4,000.00 upside down in their trade?  I visit Disney World, I don’t live there. You shouldn’t either.

"We can't lease anymore" - yes you can... there just aren't giveaways that any no talent order-taker could give away, so maybe you should quit and we'll get a salesperson who can do the job.  This can be a very unforgiving business. If that scares you, full time consideration of another endeavor may be in order.  If you are planning on coming in to wait for something to happen, go wait elsewhere, please.

News Flash for the new guys...We sold cars when interest rates were 18%... We sold cars when they would blow up... we sold cars that flipped over... we sold cars in recessions... we sold cars that were uglier than a monkey's be-hind and broke down on delivery... we sold cars from empty showrooms... we sold cars that could not get out of their own way on the freeway…we sold Yugo's, andDaewoo's, andPinto's, and K-cars for god's sake, and Detroit’s big V 8’s when gas was $4 a gallon.

How did we do it?  We SOLD them. We inquired about our customers’ needs and wants, their budget, their family, their jobs, their travel habits. We made friends and sold the snot out of the right vehicle that met all of their needs. We generated enthusiasm, that’s where enthusiasm comes from.  It’s also where gross comes from.  Remember the customer who paid you the biggest commission ever?  How happy were they?  How did you do that?  We didn't sell the deal, we made the deal sell. We didn't believe them when they told us the car was too much... because we selected a vehicle that wasn't too much; and, when they chose a more expensive model... we told them it was more expensive and they would pay more. We sold them on the idea of putting money down so they wouldn't be buried with debt so that cash down wasn't a burden but a benefit - and they always found more money for the car we made them want... because we made them want it... we made them need it... and they loved us for it.  That’s how we got so many referrals and repeat customers.

We didn't lie or cheat, we didn't play with the numbers, and trick them into paying more... we sold the sizzle... we got the customer excited, and we made money doing it and our customers loved us when we were done. And they told their friends how great we were to do business with.

When I was a salesperson I loved the snow. I loved it because other salespeople would hide in their office convinced that they were not going to sell anything because nobody was going to come out in the snow. So I stood on the lot under the overhang, dressed warmly and waited, 'cause I knew that if somebody did show up... they were there to buy something.

Why I don’t watch the news.
Today the media is pumping bad weather into every body's living room and it is pouring bad news. Today I want to be a salesperson again standing in the showroom waiting for the customer who is going to walk in, in spite of everything they have heard, because they are looking for someone to say, "it’s OK to buy," and I would be there in my tie with a warm handshake and a smile ready to make it OK to part with a few thousand dollars... and I would make it fun too.

Yes, it is true that dealers will close. Banks will go under. The car business is changing. This is the time when we will undergo an economic housecleaning. We will see the weak salespeople who survived in this business out of sheer dumb luck find their true place in fast food, asking the customer “do you want fries with that?” We will see the sales managers who forgot (or never knew) how to sell, got lazy, can’t motivate and train professionals, move on to telemarketing gig's or make that career change they have "talked" about for so long.  I am sure Amway is taking applications.

Good riddance. This business is not for the weak or faint of heart. Here, only the strong survive. When all is said and done only the best will be left standing. We will be sipping our coffee, cashing our big checks, and helping people buy cars.

In the 2^nd week of February, 2009 we did 4 days of phone training at a Chevy dealership with 21 sales consultants; we generated 208 new appointments and 105 new referrals in four days work.  We worked with Internet leads both current and aged, orphan owners, unsold showroom traffic and current owners.  If it can be done in western Louisiana, it can be done in your town too…[1]

 

What are you doing with your opportunities? How effective is your BDC? Do you have one? ON a scale of 1 to 10, how proficient or lacking is your organizations phone skills? How about follow up? You get the picture. I will be here, on time, ready to work and ready to help, with my tie on, a warm handshake and a smile.

I say bring it on!