Show Me the Money Mastering The Moment I ideas that changed the world. And just about the time we think we’ve witnessed the pinnacle of modernization, along comes a young kid with a new idea or a better way to do the same thing but faster and for less money. Perhaps he was snowed in and couldn’t get to work for a few days kind of like recent events that have gripped our country and industry. Many were furloughed, reduced to part-time status, or outright released. All in all, the car business is just starting to get back to normal. And, while some may view this as an extended vacation or decide to look elsewhere for work, industrious minded folk view it differently. Like the opportunist who looks at the glass as half full, the out-of-the-box thinker has begun treating it as a time to test, improve, and develop new processes. Like many of you, I was affected as well. Working remotely from home afforded me ample time to think, reflect, and gather my thoughts. Thoughts, that were always there now presented themselves more clearly. We’ve all seen the ads, got the phone calls, opened the junk mail saying ‘The warranty on your 1967 car is about to expire’. We quickly hang up or toss the letter without a second thought, but are we missing an opportunity? These solicitations didn’t have a reasonable chance of succeeding years ago. So, we laughed them off and made facebook memes and jokes mocking them. At first, it was just random hit or miss but marketers eventually got smarter and refined their process by checking the state’s DMV records to see your exact year, make, and model. “Listen, we’re in the best position to capture post-sale products since we understand them better than telemarketers. We have established partnerships with the providers, and already have proprietary data on our customer’s vehicles and driving habits” Still, we chuckled and ignored them. Think about this for a moment. The "stop at nothing" mentality is obviously profitable or they would’ve quit long ago. While we’re annoyed as F&I managers and even scoff, marketers are grinning all the way to the bank. So, I ask the question. “Why-as professionals-are we allowing this to continue?” Stop and think about it. WHY? Is it procrastination or outright laziness? Listen, we’re in the best position to capture post-sale products since we understand them better than telemarketers. We have established partnerships with the providers, and already have proprietary data on our customer’s vehicles and driving habits. When exploring aftermarket value pools, OEMs are often tempted to prioritize data-driven services enabled by digital innovation. For instance, Ally partnered with Blinker to expand its e-commerce and loan origination platform into two new states. Launched in Texas and Colorado, it now adds the two largest vehicle markets with its expansion into California and Florida. Blinker now gives users the option to add vehicle protection products to their deals, including Ally GAP and Premier Protection VSC’s. This creates additional pressure on dealerships in these four states. Will OEMs seek increased penetrations nationally? I’m betting they’ll try. Recently, I started data mining my dealership’s owner base calling previous customers that hadn't purchased a VSC at the time of sale. And let me tell you, the results have been amazing! My method is to simply call customers who purchased three years ago and offer them coverage. These simple phone calls have been adding a lot to my department’s bottom line while increasing my net PVR. Hey, get on the phone or text your customers and have a conversation. Segment them by need and secure their business with tailored products since you have all the data. You’ll see your bottom line take off too! Collecting the full price with a credit card works great for those who can. For the budget-minded, use a service that offers financing terms. Service Payment Plan and Line\5 are just two examples. Ten percent down upfront, equal monthly payments, and zero percent interest just make good sense. Business is booming here at Thielen Motors! A direct mail piece for post-sale VSC’s is also in the works. Listen, we must stop giving control to outside marketers lest they capture more market share. Instead, create an action plan with manageable expectations that allows you to keep control of your customer base. You’ve got 24 hours to own your tomorrow. How will you use them? It's all about Mastering the Moment. 8 GP Anderson is a more than 25-year veteran of the auto industry and currently serves as finance manager for Thielen Motors in Park Rapids, Minnesota. He is ACE and AFIP certified. t’s often been said “We all have the same 24 hours in a day”. What we decide to do with them and how much we’ll accomplish, is up to us. Pick a name-any name-of a notable inventor, industrialist, or visionary. Alexander Graham Bell, Benjamin Franklin, Henry Ford, Bill Gates, Steve Jobs, or Mark Zuckerberg. We could fill reams of paper writing down the ones we’re familiar with. Their commonality was they effectively used the 24 hours allotted to them developing products and
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