An old Idea with a New (Cyber) Twist

[machado]

I got an email today from Dennis Rushing, and His Company Dealer Cat. I had not spoken to Dennis since the WDNS Dealers Edge conference in Orlando back in 2000.

Although, I have read a great deal of what Dennis had written over the past few years including articles and Forum Comments for Dealers Edge. I was really curious regarding his ideas of Cyber 10 Groups, as I understand the concept they are much like Dealer 20 Groups. However, since they are facilitated via telephone and the Internet the traditional expense that normally accompanies this type of membership is not nearly as high to attend.

My question is, does anyone else offer services like this?

You would think that an Idea as old as a 20 Group would have found some sort of legitimacy in the Micro-consume of Automotive On-line Sales Experts???

Actually, Im somewhat disappointed that the momentum of Forums like this one and others that I participate in from time to time and why attendance in them has fallen off so significantly over the past few months. Im left wondering WHY?

Have dealers found the answer, or is there now a magic potion that has turned dealerships in to some sort of Cyber Mecca overnight? Most of the dealership that I visit with regularly have not improved their On-line Sales penetration much over the last year.

What I am finding is ISMs that have settled into a routine and become complacent with their jobs and compensation plans. A lot of them have been promoted to F&I and SM some are even GMs in dealerships. Lets face it most of the Good ISMs out there were fairly strong salespeople to begin with and would have advanced weather they were attached to a keyboard or not.

I guess what Im asking is where is the Battle Cry have we lost our desire to excel and become better than the rest? Am I so out of touch?

If Ive said this once Ive said it a thousand times The Internet will not sell one more car than would have been sold anyway. But, dealers that choose to capitalize on this medium can gain significant market share.

The market is flooded with tools, gadgets, and gizmos to help you initiate, track, and close more on-line sales with less effort than ever before. Now all we need is the desire to be the BEST. If there are tools out there that will make us better, we need to use them.

I for one believe that no one can offer you more insight than the guys and gals in the trenches that have been fighting this battle along side you for the past few years. If you know of forums where your comrades meet to exchange ideas use them. If there are, places where you can share challenges and solutions in this type of endeavor you should participate in them.


------------------
Greg Machado
E-Commerce Director &
Independant Consultant
gMACgroup.com
machado@gmacgroup.com
210.710.8456

[tbrowder]

Greg,

I, too, am amazed by the apparent lack of interest in this forum. I guess everybody has this Internet deal all figured out!

I, for one, am still, after four years, trying to get it to work better. I've streamlined the process and added a few wrinkles over the years that seem to work. Plus, I'm very fortunate to work for a dealer that "get's it" and is committed to the Internet Dept.

I would be very interested in being involved in a Cyber Ten Group. Let me know where and when. The only problem I see is for ten ISM's is finding the time all at the same time. Maybe on Sunday morning, early?

Regards,
Tom Browder
Internet Sales Manager
Lakeland Automall
Ford, Hyundai, Isuzu, Mazda
tombrowder@hotmail.com

[This message has been edited by tbrowder (edited 08-13-2002).]

[markstorring]

I am in agreement. I came to this area expecting to find a ton of posts...
I am also interested in our Internet Sales department being involved in a "group 20" idea. We have just recently redesigned our website and have a great Internet Sales Mgr. We are just beginning to track leads,etc. Do either of you have other areas that you track that are not the regular walk in type traffic tracking?
Cheers,
Mark Storring
Fixed Operations Manager
Calgary Honda / BMW

[sallen1]

I think one reason this forum lacks interest is the amount of "advertising" done by some of the participants.

Internet sales is an important element to the overall success of a dealership. Most of us do so quietly.

scott

[machado]

Tom:

You can find out more about the Dealer 10 Groups from Dennis Rushing on his website http://www.dealercat.com I read his newsletter yesterday and found most of the views of all the contributing authors to be right on target. Im not sure what the cost is to participate or how long you have to commit to, but I get the idea that it will be reasonable, especially when you weigh the benefits. So far, no one has told me about any other groups like this that are evolving anywhere else.

I for one, enjoy reading and learning about the obstacles that our small band of sales commandos encounters and the creative ways that we solve our problems. The energy and passion that I have seen in this type of exchange is nothing short of amazing. We need to pick up the banner and drive forward and continue to help this effort evolve into something GREAT!

To me the biggest relief of being part of forms and groups like this is that I find out that I am NOT ALONE out there. Believe it-or not, the most profound thing that I have learned over the past few years is that there is no such thing as a unique problem. We all share the same type of challenges; the real difference is how we solve them. You can sit there and cry about it or you can get out there learn from each other and build a better mouse trap than the last guy did.

Mark:

Send us the link to your site I think we would like to see it.

Tracking leads is critical for more reasons than you might think.Here are a few that you might not have considered: I use and recommend Web Control from http://www.avv.com

-Performance Tacking
Not only to measure how you are doing but also you cant improve what you do not measure. There needs to a steady increases on production from your ISM and this data need to be reviewed continually.

-Tracking ROI
Undoubtedly, you will be receiving leads from a variety of sources most likely some of them our subscriber sites where you pay a monthly fee. You need to make sure that all of your sources are giving you solid returns.

-Marketing Efforts
I keep all of my leads in a database, if I do not start some sort of dialogue with the prospect soon after receiving the initial contact they go to a file called Broadcast and they will receive an email from me once a week. This email is sort of like a newsletter with links to my weekly ad, current rebates, kbb.com, parts store and a list of other research tools. Each month this list is responsible for 30% of my sales volume.

-Records
You paid for those leads, or at the very least have made a considerable investment in collecting this data. You need to keep them somewhere safe. ISMs come and go, dont let them run across town to your competitors with your investment. The next person you hire will probably need to do some sort of CPR to bring your program bock to life. Why start from scratch when you might have a list of real prospects that might be ready now.

Scott:

I do not like ads that much either.

However, remember Advertisers pay to keep forums like this afloat. Moreover, lots of time they our best source of information. If you work in a dealership, you have probably run a commercial yourself in the middle of someones favorites TV show.

Although, "DE" has asked that vendors not put hard ads on the Form part of this site a lot of Great Information has been exchanged here and bad information has also been corrected by vendors.

Just something to think about


------------------
Greg Machado
E-Commerce Director &
Independant Consultant
gMACgroup.com
machado@gmacgroup.com
210.710.8456

[This message has been edited by machado (edited 08-14-2002).]

[This message has been edited by machado (edited 08-16-2002).]

[doc]

I believe the reason you've seen a drop in participation is strictly due to whats currently going on within many dealerships.

1. Many dealers have shifted focus back to the basics inlight of the recent economic setbacks due to 9/11. I'm sure it has effected every maket nationally in a different manner. Plus I've noticed that alot of domestic brands are losing their market shares while import dealers seem to be gaining. If your in a domestic dealership and experiencing any rough water right now then your management probably is falling back into their old habits in attempt to regain sales.

2. If dealers/management are struggling to maintain their volume then the Internet is probably being put on the back burner in many stores. If managemnt isn't willing to focus or invest in this area then the ISM's around are probably becoming complacent due to everyone els's lack of interest. If they are becoming complacent and feel that their staff will not invest time or money to their departments then why keep up with this forum. IMHO of course.

I find it rather sad. I've talked to several ISM's and have heard things of this nature. Alot of dealers lost faith in the Internet's ability to turn heavy profits. Unfortunately if there are dealers out there that are not turning profits through the Internet it is probably their own fault. Let me say it again... It is their OWN FAULT!!!!!

Lack of commitment, dedication and resources. Same old problem 5+ years later.
As an ISM and E-commerce Director for my Group I can say that it becomes frustrating day after day, month after month, year after year hearing the same complaints, gripes, problems, (And more often that not) EXCUSES from all levels of management. I don't have time, It's not profitable, it's not possible, it wont work. Many dealerships have frozen their expenses due to the un-stable market conditions. And many never participated in the first place and are still not making efforts now.

What I find the most amusing is that a good Internet Department can teach/show a dealership how to reduce costs (Advertising, man power, and daily operational tasks) 10-20%, increase revenue by as much as 15-20%, and do it with half the staff using technology. However it always requires the dealership spending a little money providing the RIGHT technology. Their seems to be a lack of faith in the technology and an un-willingness to change their old ways. In a time where profits are thinner, traffic is slower, and costs are the same you would think the Internet would be a primary focus.

Hell in my store alone we increased revenue by 10% and decreased some advertising costs by as much as 20%. Thats all profit. But still many dealerships still are not getting it.

I use to be an active participoant in this forum but I've almost givne up. The Auto Industry isn't ready for this and I don't think they will be for quite a while.
Oh, wait a minute......

NEWS FLASH-NEWS NEWS FLASH-

Some dealerships do get it, their making money, their stealing market share, their reducing expenses, Oh yeah they just sold one of your so called loyal customers. Isn't that funny!

But don't worry all you ISM's out there who are still lacking the respect that you just deserve, eventually those guys down the street that are doing what they need to "BE the BEST" will take enough customers from your store that they'll need to hire you to hadle them. It all works out in the end!

[tbrowder]

Doc,

Do I detect a little cynicism and bitterness there? Don't let 'em get you down. Us old cyber car dogs have got to hang in there in spite of the morons we deal with.

Keep the faith....

Tom.com

[machado]

I think I might know what is happening.

Doc, your right most Dealers and GMs have not gotten to see any REAL RESULTS.

Sure, they might sell a few cars on the web. There is an Old South Texas colloquialism perhaps it is used in other parts of the country too it goes like this:

Even a blind hog can find an acorn from time to time.

Here is what I think is happening, eventually if guys keep working at it they begin to see where they went wrong and make a few adjustment. For instance, I believe, even the most novice ISM will eventually notice that the purchase request that he get back to most quickly tend to become deals more frequently. {Ergo, get back to the customer sooner sell more cars Selling cars GOOD; Missing deals BAD. POW! Just like that, you have solved the most perplexing part of selling cars online. RIGHT?

I understand your comment Doc and I feel your pain. I also share in the private pleasure you have because you GET ITand the person next to you doesnt. Ive been there, I even have a Tee-Shirt.

The part that is truly amazing and that most GMs dont know that you can run a successful Internet department on next to nothing.

Lets take my store for example. We are in a stand-alone Jeep store in South Texas half way between Austin and San Antonio. Our immediate market is small, less than 40,000 people. There are six Jeep Dealership less than 1 hour south and seven Jeep Dealership less than one hour north of us. Therefore, to say that the Jeep competition is fierce would be a gross understatement.

Last month we Retailed 80 New Jeeps 23 of those units came from Internet Purchase Request. Our internet department is a one-man-show. We receive leads from five sources here is last months breakdown:

Autobytel.com = 21
Five Star Website or GAQ = 12
Our own website www.bbjeep.com = 16
GetAuto.com = 6 Used Request
On-line referrals 4

Do the math, on 59 PRs we sold 23 Jeeps Our ISM only got credit for 18 because he had to split 10 deals last month with floor salespeople because as is usually the case in having a store that is a Destination Locating people get here too early or too late to time the appointments just right.

Now admittedly, not all of the 23 Deals came from those 59 PRs we got in last month about 39.1% of them came from the people that we emailed as part of our weekly ad campaign to guest that are already in our system in previous months. This month we already have 16 vehicles burning gas. So our August run out pace is 32 I guess we will see what happens at the end of the month we have only had to split one deal so far this month.

Here is the kicker; our Internet budget is not much at all.

Our ISM is paid like a regular salesperson except for his mini commission being $50.00 higher.
We spend $640.00 a month with Autobytel.com
Get Auto makes our window stickers and the online index does not cost a penny more than we would spend anyway.
Our hosting and admin fees are only $125.00 a month.
We pay AVV $115.00 a month for our Web Based lead manager and Inventory Down loads
Our Jeep.com Leads are Free since we are a 5 Star Dealer.

Think about this for less than $1,000.00 we run an Internet Department that sells well over 20 cars a month, at an Average Front End Gross of $1,240.00 per copy and an additional $1,550.00 on the back, lets see now; that would be
$2,790.00 x 20 =$55,800.00. Not Too bad an ROI on less than a $1,000.00 Investment.
Fortunately, a fair chunk of this goes into ISM Bonuses for hitting strong quotas.

Do you think other dealers would be willing to try this if they knew it could work?


------------------
Greg Machado
E-Commerce Director &
Independant Consultant
gMACgroup.com
machado@gmacgroup.com
210.710.8456

[doc]

Yes Tom, It is true. There is a little bitterness here. Only because I know I could have been dominating the Orlando area had certain powers quit their controlling ways and allow a younger more "Internet" qualified person make some decisions.

But, as I've always said. It's their money, their loss. Not mine. Since I dont make commission or get bonuses or anything that you would normally associate with a "Sales" job it truly is their loss.

What I am more bitter about though isn't Dealers and Managers as much as it is the Manufacturers. Although it is the responsibility of the Dealership to pursue new revenue generating ideas, it is the duty of the manufacturer to pave the path and make it as easy as possible. Lets face it, the manufacturer has the most to gain by doing this.

Unfortunately, (With the exception of a few brands)the path being paved has too many holes in it to make it worth while. I've seen manufacturers make more costly mistakes wasting time & money of their dealers. There so-called E-commerce Directors have made poor choices in the technology, services, and training that they tried to provide. Then they charged the dealers for those items. I could almost blame many of the manufacturers for the lack of faith being seen by many dealerships. When dealers listen to their manufacturers and find that their losing money (or not making any) it's real easy to lose faith.

What about those few brands that are doing it right, well lets look at Toyota for example. Didn't they just de-thrown Chrysler and move on up to be part of the "Big 3". Of course they didn't do this with just their Internet initiatives, however it is no secret that they are the leaders in the Internet world amongst Automotive retailers. And they sure are not showing any signs of slowing down. Of course Toyota was training dealership personel on Internet selling and marketing before the domestic's even knew the Internet was there.... At least thats what it seemed like!


Greg, good numbers.... and (to get back on the subject of this post)yes, I would be very interested in some sort of "Cyber 10 group". Keep us posted and or (since you seem to be on top of things) lead the way. Count me in.

"Where there is an open mind, there will always be a frontier."

~ Charles F Kettering

[tbrowder]

Wow, Greg, with your closing ratio you would sell 282 cars per month at my store!!!! My Internet Dept. sells about 14% of our total volumn per month in a 400 car per month store. We don't even come close to your 47% closing ratio, though. Are you sure your calculator doesn't need a fresh set of batteries? Your Dealer should be picking you up every morning personally and driving you to work!
Have you ever thought of moving to sunny Florida?

See ya'
Tom.com