Road to World Class Road to World Class Selling Process Selling Process By: Don Battista By: Don Battista
Road to World ClassRoad to World Class
Selling ProcessSelling ProcessBy: Don BattistaBy: Don Battista
Objective
To outline the “Selling Process” and to provide you with practical scenarios to hone your ability to utilize this consultative approach.
Why is the Selling Process Important?
Customer Enables us to listen to the customer, analyzing needs and preferences by
asking open, in-depth questions and carefully evaluating answers assisting them in clarifying their own needs
Involves dealership management in creating solutions to their stated problems and develop solutions and plans as a team
Allows us to customer tailor a business plan to the dealerships stated need.
Provides a common vision/goal and promotes commitment across the dealership
Platform for continuous and purposeful contact
Why is the Selling Process Important? Creates program differentiation versus the competition
Provides a standardized and scalable approach
Does not require a repertoire of closing techniques, script memorization and you do not have to ‘sell-and-run’.
Allows for more activity based feedback to our OEM alliances so we can target their efforts for maximum performance.
Broadens our dealer contacts (DP/GM/Fixed Operations)
Builds loyalty and sustaining value
Helps gather important dealer information for internal planning
Selling Process Workflow
Complete Current State Business Analysis
(CSBA)
Create Business Plan to Capitalize on Opportunities
Present PlanObtain Commitment
Establish Goals
Inspect, Measure & Communicate Results
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7 Keys to Tire Program Success
Dealer InformationName: Title:Nick Buionicotti Account Manager
Dealership: Dealer Code: Chain Association:Rick Evans Motors TOYMMMMM None
E-Mail: URL:rickevansmotors.com
Phone Number: Fax:999-897-8997 999-897-8996
Signature: Date: 1-6-06
Dealer Principal Name: Phone: Email: Rick Evans 999-897-8990 [email protected]
General Manager Name: Phone: Email: Boris Spider 999-897-8991 [email protected]
Parts and Service/Fixed OPS Director Nam: Phone: Email: Elation Jackson 999-897-8992 [email protected]
Service Manager Name: Phone: Email: Roger Daltry 999-897-8993 [email protected]
Parts Manager Name: Phone: Email: Peter Townsend 999-897-8994 [email protected]
Pre-Owned Manager Name: Phone: Email: Tommy Canuhearme 999-897-8995 [email protected]
Who is the Tire Program Champion? (name and title) Elation Jackson - Parts and Service Director
# of employees in each Department
Service Consultants Parts Associates Techs Flat Rate Techs – Hourly6 3 22 6
Daily RO count: Customer Pay: Warranty: Internal:75 15 10
Where is Dealer in Commitment Cycle? (ACTIVE)Training phase
What is Dealer size? (ABCDE)B
Leadership CommitmentDP/GM/Fixed Operations Director Level of Involvement 1 2 3 4 5 6 7 8X 9 10Sales Potential:1080 units per monthOn Program Tire Purchases:(complete below)
Month 1:Share:
Month 2:Share:
Month 3:Share:
Month 4:Share:
Month 5:Share:
Month 6Share:
9.8
Month 7:Share:
Month 8:Share:
Month 9:Share:
Month 10:Share:
Month 11:Share:
Month 12:Share:
Tire Sales Goal: Service Lane: (complete below)Month 1: Month 2: Month 3: Month 4: Month 5: Month 6:
250 250 250
Month 7: Month 8: Month 9: Month 10: Month 11: Month 12:
Tire Sales Goal: CPO and Used: (complete below)Month 1: Month 2: Month 3: Month 4: Month 5: Month 6:50 50 50 Month 7: Month 8: Month 9: Month 10: Month 11: Month 12: Describe Fixed Operations Compensation Plans and Business Priorities:Management: Parts Department: Technicians:Paid salary plus 3% of total gross profit dollars generated in Parts and Service Departments
Paid salary plus 2% of total parts sales Hourly vs Flat rate
Points Plus Incentive: Prior Year Points:1387How are incentive points being distributed?PM and SM split points, Service points are not used for incentives
Buy In From Departments
Are monthly meetings held between Parts and Service? No
Parts: How is the communication between Parts and Service?
Service: How is the communication between Parts and Service?
PM and SM get along fine. No formal meetings are help with Associates. Parts is always frustrated when Writers call for tires when they stock the same tires everyday and offer consistent pricing
SM and PM get along great. PM will always listen and runs a tight ship. They will stock necessary products to support Service
Parts: What is the biggest obstacle in selling tires in your Dealership?
Service: What is the biggest obstacle in selling tires in your Dealership?
Writers do not know prices or what's in stock, they don't think we have right tires and believe we charge too much
Writers are not motivated, don't think we have what we need and believe we are too expensive
Parts: How are tire sales? Service: Do they usually have what they need in stock?
Could be better With general parts yes
InfrastructureDo they have a tire-changing machine? Y If “yes”, is it capable of handling all of
clients’ needs?Y
Number of machines: 1
Do they have an electronic spin balancer? Y If “yes”, is it capable of handling all of clients’ needs?
Y
Number of balancers: 1
Do they have an alignment machine? Y If “yes”, How many customer pay alignments per month?
12
Number of machines: 1
Is a specific technician assigned to diagnose ride disturbance problems? N
What total space is available for stocking tires? Square footage available?
Height available? Service Lane space available?
200 square feet in parts department
12 feet
minimal
How many tires can be stocked? 200
What type of storage system do you currently use? What is total number of tires that could be stocked in Dealership?
200
Stationary racking? Mobile racking?
Are POP materials up and visible? N If no, why not? Visible but only in Parts department
Are Tires visible? N If no, why not? Visible but only in Parts department
InventoryPlease describe the mix of vehicles seen in the service department:
Cars
Avalon Camry Celica Corolla Echo
15% 25% 5% 25% 5%Matrix MR2 Previa Prius Sienna
5% 5% % % 10%Solara Scion xA Scion xB Scion tC Other
5% % % % %Truck and SUV
4 Runner Highlander Land Cruiser Rav 4 Sequoia
25% 50% 5% 10% 5%Tacoma Tundra Other Other Other
% 5% % % %What Dealer Management System is used? Reynolds ADP Other Does Dealership utilize an Inventory Control System for tire inventory? Y
Has Dealership created a separate source for tire inventory: Y
Does Dealer run a stock order for tires? N
When does Dealer know to order tires? Places web order when tires are sold
What is the order frequency? As tires are sold
How many Program tires are currently stocked? 150
How was decision made on stocking quantity? Suggested stock order
What brands are currently stocked? Dunlop, Yokohama, Michelin
Effective SellingPlease describe the type of tire training that has been conducted in the Service and Parts DepartmentPM and SM attended launch meeting, Tires 101 training was completed in 2003
How are price and availability communicated to Service writers?Old school over the phone
Is a Retail Selling guide used?No
Does Dealership quote a complete installed price?Yes, installation is added to tire price by Writer prior to quote
What are the most common objections from Consumers for not buying tires at the Dealership?"too expensive"
How are these objections overcome?Rarely if ever
Are lost tire sales tracked?No
How many ROs per day does each Service writer write?15-20Describe Service writer compensation planAre writers sold on Labor sales? Parts sales? Effective Labor rate?Service writers are paid on labor sales only.
Is there an incentive specific to tire sales?No, spiffs are not offered either
Tires 101 has been completed: When? 2003 To whom: Service writers, parts
Tires 202 has been completed: When? To whom: Do operation codes exist to track tire sales? N
Vehicle InspectionWho completes the vehicle inspection? Technicians when they want to
Is an inspection completed on every vehicle every day? N
Is tire information part of vehicle inspection? Y Tread depth: Air pressure:
YN
When is tire information shared with Consumer?
Information is not communicated unless technician recommends replacement
How is the vehicle inspection policy measured and reinforced?
Neither measured nor reinforced
Are pre inspection reports used? N Factory Custom (attach sample)
Competitive OfferingWhat is the customer charge per tire for complete installation? (include shop supplies, valve stem, disposal, wheel weights)
$15 per tire, $25 per tire on 17" and runflats
Which technicians install tires at this dealership?
Hourly Flat Rate Both
What is desired tire Margin or markup? 25% Give example: $100 cost sells for 133.33
What other tire services are offered:
Road hazard as part of TTCP, not "sold" as it could be
Who are local tire competitors for Dealership’s service customers?
NTB, Sears, Bubba's
Does Dealership shop local tire competition?
Not on tires, but will offer low cost O-L-F when business is slow
How do Dealership installed prices compare to the Competitors?
Prices are extremely competitive when sold properly
Are prices adjusted to insure competitiveness?
No
Is local market competitive analysis regularly completed?Date of analysis?
N
1-12-06 completed by NB
Competition for Dealer’s Business
Does the Dealer purchase tires outside of the Program? Y
What percentage of tires are purchased outside the Program? 10%
Why are tires purchased outside the Program?
With service writers not knowing what's in stock, they sell whatever they feel is best for customer and, when tires are not in stock, Parts goes locally to speed process
Does the competitor offer value added service outside of service and price?
N
What value added services are offered?
Alliance Rep QuestionnaireAR Name: Title:
John Entwistle District Parts and Service Manager
Phone: Email:
999-818-5555 [email protected]
How would you assess the dealer’s ability to implement programs?
Parts and Service will follow the recommendation of DPSM. They do a decent job of getting things started but need regular follow up to be successful
What are the obstacles or potential barriers to selling tires within the dealership?
Writers and techs run the shop. The Dealer is busy place and they are, at times, overwhelmed with customers.
Who are the Tire Program “champions” in the dealership?
PSD is the key to making things successful
Who are the “blockers”?
Writers and technicians,
Are there any new construction, relocation or remodeling plans in the next 12 months?
Discussion of new location is in the works. The problem is finding enough land at an affordable price.
Is the dealer planning any management changes or additions in the next 12 months? Explain.
Service Manager is letting the patients run the asylum. He needs to make things happen or PSD will have no choice but to takeover until he finds someone of higher quality
Plan Development
Select top 2 or 3 Opportunities for GrowthChoose best practice for ImplementationComplete Selling Process Calculations Create Plan Presentation DocumentSet Appointment for Commitment meeting
with:DP/GM/Fixed Operations DirectorMake sure Parts and SM in attendanceInvite Alliance Rep to attend
Communicating the Plan, Gaining Commitment and Setting Goals
Meeting Objective
Share Current State Business Analysis Discuss Opportunities for Improving Sales and Profits Gain Commitment to Implement Best Practices Set Timeline for Implementation Discuss how we will Measure Success
Opportunity Summary PrintoutSummary for Rick Evans Motors
Opportunity - UnitsDaily Tire Opportunity - Service Lane 45Monthly Tire Opportunity 1 - Service Lane 1,080Annual Tire Opportunity 1 - Service Lane 13,770Annual Tire Opportunity - Pre-Owned Vehicles -
Opportunity - DollarsRevenue Gross Profit
Service Lane Tire Opportunity - Annual Dollars $1,470,000 $382,200Installation (Mount & Balance) - Annual Dollars $275,400 $137,700Pre-Owned Vehicle Opportunity - Annual Dollars - - Other Services ( Brakes, Alignments) - - Customer Retention / Loyalty - - Estimated Value of Opportunity $1,919,900 $519,900
Opportunity is Based on the Following Operational MetricsAverage Daily Repair Orders 75 Carline Average Wholesale Price $79.00Tread Depth Survey (Bald Tire Factor) 15% Gross Profit on Tires 26%Close Rate 2 100% Installation Charge per Tire - Retail $20.00Business Days per Week 5 Gross Profit on Installation 50%
The 7 Keys for Success
1. Leadership CommitmentThe dealer principal / GM is committed to the tire program(circle the rating that best describes the dealership’s current situation)
1 2 3 4 5
Tire sales goals (with teeth) are established for
the SM, PM, and Pre-Owned Mgr and the dealership has a tire inspection policy.
Tire sales goals are not established and
the dealership lacks a tire inspection policy.
Tire sales goals exist, but there are
limited ramifications for not achieving
goal.
1 = significant barrier, the tire program will fail unless this barrier is removed2 = barrier, the tire program will likely fail unless this barrier is removed3 = partial barrier, tire sales will not grow until this barrier is removed4 = potential barrier, tire sales will not be maximized if this barrier is present5 = no barrier exists in this area to reaching the dealer’s tire potential
The 7 Keys for Success
2. “Buy-In”Parts, Service, and Pre-Owned support the tire program.(circle the rating that best describes the dealership’s current situation)
1 2 3 4 5
Each department understands the
importance of tire sales and works
together to maximize them.
The tire program is unimportant and not on the “radar screen” for Parts, Service, and
Pre-Owned.
The tire program is unimportant and not
on the “radar screen” for Parts, Service, and Pre-
Owned.
1 = significant barrier, the tire program will fail unless this barrier is removed2 = barrier, the tire program will likely fail unless this barrier is removed3 = partial barrier, tire sales will not grow until this barrier is removed4 = potential barrier, tire sales will not be maximized if this barrier is present5 = no barrier exists in this area to reaching the dealer’s tire potential
The 7 Keys for Success
3. InfrastructureWarehouse and merchandising space is sufficient.(circle the rating that best describes the dealership’s current situation)
1 2 3 4 5
There is no place to store/rack inventory
or set up a merchandizing
display.
Some warehouse and merchandise space
exists, but insufficient to handle the potential
tire volume.
Warehouse and merchandizing space
can handle the potential tire volume.
1 = significant barrier, the tire program will fail unless this barrier is removed2 = barrier, the tire program will likely fail unless this barrier is removed3 = partial barrier, tire sales will not grow until this barrier is removed4 = potential barrier, tire sales will not be maximized if this barrier is present5 = no barrier exists in this area to reaching the dealer’s tire potential
The 7 Keys for Success
4. InventorySufficient inventory and brand selection exist.(circle the rating that best describes the dealership’s current situation)
1 2 3 4 5
The top 40 SKUs for the nameplate are stocked. A
choice of good, better, and best tires exist for the most common vehicles.
Little inventory is kept on hand or the present
inventory management system results in frequent
stock-outs.
Inventory levels and the management system are sound, but only a single brand of tire is
available.
1 = significant barrier, the tire program will fail unless this barrier is removed2 = barrier, the tire program will likely fail unless this barrier is removed3 = partial barrier, tire sales will not grow until this barrier is removed4 = potential barrier, tire sales will not be maximized if this barrier is present5 = no barrier exists in this area to reaching the dealer’s tire potential
The 7 Keys for Success
5. Effectiveness SellingASM’s have the desire, knowledge, and skill to sell tires.(circle the rating that best describes the dealership’s current situation)
1 2 3 4 5
ASMs are paid to sell tires, have “passed” Tires 101, ask for the sale, and
proficiently handle consumer objections.
ASMs have not taken/embraced Tires
101, are not paid to sell tires, or are afraid of consumer objections.
ASMs “buy into” Tires 101, but are not
attentive to selling tires in general, or not
consistently asking for the sale.
1 = significant barrier, the tire program will fail unless this barrier is removed2 = barrier, the tire program will likely fail unless this barrier is removed3 = partial barrier, tire sales will not grow until this barrier is removed4 = potential barrier, tire sales will not be maximized if this barrier is present5 = no barrier exists in this area to reaching the dealer’s tire potential
The 7 Keys for Success
6. Vehicle InspectionTire treads are consistently inspected for wear.(circle the rating that best describes the dealership’s current situation)
1 2 3 4 5
The ASM or Porter perform a 100%
inspection on all tire treads and record their
findings.
The ASM rarely takes the time to perform tire tread
inspections.
Tire tread inspection occurs during slow service times but records are not
consistently kept.
1 = significant barrier, the tire program will fail unless this barrier is removed2 = barrier, the tire program will likely fail unless this barrier is removed3 = partial barrier, tire sales will not grow until this barrier is removed4 = potential barrier, tire sales will not be maximized if this barrier is present5 = no barrier exists in this area to reaching the dealer’s tire potential
The 7 Keys for Success
7. Competitive OfferingDealer’s tire package is locally competitive. (circle the rating that best describes the dealership’s current situation)
1 2 3 4 5
The dealer offers road hazard/free tire rotation
and hourly labor as needed to compete with
local tire retailers.
The dealer is at a significant competitive
disadvantage compared to advertised deals in the
local market.
The dealer does not have consistently
competitive offer in the local market.
1 = significant barrier, the tire program will fail unless this barrier is removed2 = barrier, the tire program will likely fail unless this barrier is removed3 = partial barrier, tire sales will not grow until this barrier is removed4 = potential barrier, tire sales will not be maximized if this barrier is present5 = no barrier exists in this area to reaching the dealer’s tire potential
Results
Current State Business Analysis Rating
1) Leadership Commitment 2
2) “Buy-in” 3
3) Infrastructure 3
4) Inventory 4
5) Effective Selling 2
6) Vehicle Inspection 2
7) Competitive Offering 4
Top Opportunity For Growth
1. Leadership Commitment
2. Buy In from Departments
3. Infrastructure
4. Inventory
5. Selling Effectiveness
6. Vehicle Inspection
7. Competitive Offering
Targeting Success
Dealership Goals
• Current average monthly tire sales =$_____________Units___96_______
• Average monthly tire potential =$_____________ Units__1080_____• Near-term, monthly tire sales goal =$_____________
Units___250_______
Dealer Agreement:Dealer Tire Agreement:Follow-up Date:
The final component to a successful Tire Program is establishing target objectives
Targeting Success
The final component to a successful Tire Program is establishing Target Objectives
Dealer Agreement:Dealer Tire Agreement:
Follow-up Date:
Service
1. Implement consistent inspection process – Implementation date: 2-1-06
2. Implement Retail Selling guide
Implementation date: 2-1-06
3. Attend Tire Training Training Date: 2-1-06
Parts
1. Commitment to consistent availability of tires on Retail Selling guide
Implementation date: 1-16-06
2. Place daily stock orders Implementation date: 1-16-06
3. Monthly Competitive price shopping on top 5 skus
Pre-Owned
1. Retail selling guide developed for Pre Owned department – special markup and installation
2-1-06
2. Road hazard information to be placed into Vehicle folder and explained to Consumer – to begin 2-1-06
3. Attend special training meeting for Salespeople
2-1-06
Selling Process Workflow
Complete Current State Business Analysis
(CSBA)
Create Business Plan to Capitalize on Opportunities
Present PlanObtain Commitment
Establish Goals
Inspect, Measure & Communicate Results
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4
3
2
Thank You