EasyAutoSales Blog » auto sales

Interview with David Hensley Jr of Cars Etc Inc. in Knoxville, TN

Will — Mon, 08 Jun 2009 13:50:08 +0000

Brad and David Hensley Jr of Cars Etc.

For our next car dealer interview David Hensley Jr of Cars Etc. Inc. in Knoxville, TN shares some great information on his dealership’s marketing budget, online dealer reviews, and more.

If you would like to take part in our dealer interview series please email me at will(at)easyautosales.com or twitter us at @easyautosales.com.

1. David, tell us a little bit about Cars Etc. , and your own career in the auto industry?

Cars Etc…Inc. was started in May of 1983, by James Hensley, Jr. since then, we have grown from a front row consisting of 4 vehicles and 2 employees; James and his brother, David,Sr. to over 200 units currently in stock and 10 full time employees, majority of which are family. Two of whom are Brad and David, Jr. who aspire to make this a 2nd generation business and we both have for the most part spent our entire lives learning this business, be it washing cars or developing advertising campaigns. This dealership is all we have ever know and all we ever want to do.

2. How has Cars Etc. been specifically affected by the current economic situation?

Cars Etc was not immune to the recession, we had to deal with the rapid decline of current inventory value, which led to some interesting outcomes. The first was that we had to take some significant loses on a few of those vehicles in order to restock our dealership with vehicles at the corrected market price. The second result of this downturn which has actually been a big positive is the fact that we had to readjust some bad spending habits which has made us a leaner and better business overall and ultimately allowed us to offer even better deals to our customers.

3. What expenses have you cut from your daily operation? What new programs have you added to your daily operation?

We have not had to cut our daily operations however we have had to make sure that all hands are on deck willing and able to come in earlier and stay late, if needed. We have started offering shipping to our customers within a specific radius if that is what it takes to get the deal closed. We have been very blessed in that we have a group of employees that understand the harder they work individually, the better the company does overall which will ultimately result in a better standard of living for everyone, basic “Game Theory”.

4. Has your attitude towards the marketing budget changed? Has it shifted more and more online?

Personally, being from the Y Generation, our attitude has always been that we should be online advertising however the boomers that started this company, had a hard time believing someone would actually buy a car without touching it. So, like all good sons, we canceled our print advertising all together 3 years ago shifted that part of our budget to online outlets and it has resulted in some of the best years our business has ever experienced all while dealing with one of the worst recession of all time.

5. What are your thoughts on online reputation management? Are online reviews of dealers the next IT thing?

We are excited to see individuals having the opportunity to voice there opinion of dealerships through these online outlets. However, with that said we work tirelessly to maintain a high level of customer satisfaction and see this as an opportunity to gain market share from those shady folks that do not deserve to be in our industry in the first place. An yes we believe that it is prudent that someone should monitor those sites to be sure to maintain a sound reputation online.

Cars Etc. Dealership in Knoxville, TN

6. What are your thoughts on the future of dealerships as many people start shifting their shopping patterns towards online research and browse? What can dealers do to adapt?

Based on what we have seen and heard over the past couple years for the most part, almost all car shoppers are online researching already, so if dealerships have not already adjusted their ways of operating, then one has to think they are gonna have some very difficult days ahead of them. We would suggest finding out where your potential customers are researching the most and try to get involved in that medium be it your local newspaper or some place online, just go to them!

Thanks David! You can also follow Cars Etc on Twitter @carsetcinc. If you have any more questions for David feel free to leave them in the comments. Hopefully we can keep the interview going. Again, if you’d like to be interviewed for our blog please email me at will(at)easyautosales.com or twitter us @easyautosales.

Interview with Ed O’Grady of Classic Chevrolet

Will — Fri, 05 Jun 2009 16:04:17 +0000

Ed O'Grady Car Dealer of Classic Chevrolet

To continue our dealer interview series we’ve had the pleasure of interviewing Ed O’Grady of the Classic Chevrolet dealership in Amherst, MA. Ed shares with us his experiences selling cars in the current economy.

If you would like to be included in our Car Dealer Interview series, please drop me an email at will(at)easyautosales.com or twitter us @easyautosales.

1. Ed, tell us a little bit about Classic Chevrolet?

Classic Chevrolet was formerly Paige’s Chevrolet. It was purchased from the Paige family in 2002. This dealership has been in Amherst, Ma since 1883 (horse and buggy) a small, customer friendly place with very long-term employees and a consistently high customer satisfaction index (CSI).

2. As a result of the recession, what expenses have you cut from your daily operation? What new programs have you added to your daily operation?

The largest cuts we have made is in our New car floor plan. We have drastically reduced our New vehicle inventory. Some new programs we have added to our store revolves around the Internet. Blog pages, twitter, and other social media. We also use lots of on line free advertising such as Craigslist. We have been doing lots of FREE advertising to complement advertising we pay for.

3. In addition to cutting down on new car inventory, have you also made changes to your used car inventory such as offering cars under a certain price or age?

Yes we definitely have started to offer cars below $9,995. We have typically only offered very low mileage vehicles that are Certifiable.

4. How would you rate the performances of your twitter and blogging efforts? What are dealers missing if they don’t do these things?

Twitter has been a great way to announce certain specials and offer certain vehicles to a more targeted audience. We get greater views of our inventory through this media.If dealers don’t get involved now I think they are missing out on some additional opportunities!

5. Has your attitude towards the marketing budget changed? Has it shifted more and more online?

Yes our marketing budget has shifted almost completely to online.We do have a car magazine that works well here that we also use. People have shifted to on line only to find a car and research the dealer, before they commit. People still purchase at the dealership, as opposed to online.

6. What are some of the biggest concerns you have when buying leads?

We don’t purchase leads at this store, however when I used to purchase them duplicates and phony info were always the concern. Actually how did the lead get generated? Was it some contest on line to win something? Or Did the customer request to be contacted!

7. Do dealers still pay flat fees for marketing their online presence?

We still pay some flat fees for online presence , however we utilize everything we pay for to the max!

8. What are your thoughts on online reputation management? Are online reviews of dealers the next IT thing?

An online reputation is crucial to your success. Reviews and comments online are very valuable.

9. What can dealers do to adapt as many people start shifting their shopping patterns towards online research and browse?

Media on your website. Videos show the likeness of the dealership. I think people are all ready doing this!

Thanks for your time Ed! Readers, if you have any more questions for Ed feel free to add it in the comments. Hopefully we can keep the interview going. You can also find Ed on Twitter @carsalepro

Classic Chevrolet Dealership in Amerherst, MA

Interview with Tracy Myers of Frank Myers Auto Maxx

Will — Wed, 03 Jun 2009 17:43:28 +0000

Tracy Myers in front of Frank Myers Auto Maxx Dealership

Tracy Myers of Frank Myers Auto Maxx Dealership in Winston-Salem, NC has been kind enough to answer a few questions about his experiences in the auto sales industry and what it’s like to be a dealer in today’s economy.

If you would like to be included in our Car Dealer Interview series, please drop me an email at will(at)easyautosales.com or twitter us @easyautosales.

1. Tracy, tell us a little bit about Frank Myers Auto Maxx and your own career in the auto industry?

Once upon a time (when I was much younger), I was rebellious and wanted nothing to do with the family business. So I packed my bags & went off to college. A few odd jobs later, I was searching for a better way to make money while going to school. That’s when I got a job at a nearby Toyota dealership and caught the bug real bad. I was in class from 8am to 1 pm and sold cars from 3pm to midnight and was promoted to Sales Manager in less than a year. I was only 19 years old and thought I knew everything so I quit school to make money in the car business. And all of this happened without my father’s knowledge! With that kind of experience and success under my belt, I thought it would be a great time to go to work for the family business. My dad welcomed me into the business and gave me a job right away…in the detail shop! I went from making $80,000 a year to minimum wage and I was really discouraged…but in hindsight that was the best thing he ever did for me. I am glad my Dad didn’t give me a free ride. My mom and I have a joke that I have worked out of every office in the dealership at least twice.

These days, I own the dealership (which I bought from my father 4 years ago) and have become a Certified Master Dealer, the NIADA National Quality Dealer of the Year in 2006 and was named one of the top 100 Small Businesses in NC (coming in at #22).

2. How has your dealership been specifically affected by the current economic situation?

In my opinion, the current economy is not bad…it’s just DIFFERENT. I can’t operate my business the same way I did even 6 months ago. The business climate is changing like the weather and we have to be prepared to change with it at a moments notice. When I wake up every morning, I have to determine if I need an umbrella or the sunscreen! But I’m ok with that because when these meltdown is over, the strong will be left standing. My dad says that a recession is necessary every few years to purge the wanna-be’s and the Mickey Mouse operators. While I may not punt it as bluntly as he does, I tend to agree.

3. What expenses have you cut from your daily operation? What new programs have you added to your daily operation?

I have tried not to cut out anything. Instead, I have consolidated some departments and I am continuously striving to make everyone more productive. I tell them that they don’t get paid for the hour. They get paid for the value they bring to the hour. It has always amazed me how much wasted time there are inside of dealerships. So I have stressed to my team that if they will come to work to work then I won’t have to cut pay, positions or benefits. I have also switched everyone to performance based pay plans which encourages everyone to maximize every opportunity. It is a win-win…gives them a chance to make more money IF they produce. If they don’t, then they make status quo.

4. Has your attitude towards the marketing budget changed? Has it shifted more and more online?

My marketing budget has always depended on the ROI…regardless of the medium. Most dealerships seem to only focus on a percentage or a per car amount. I use 10 to 12% of the total gross as a guide but the ROI is more important to me. I feel that there is a saturation point for all marketing. By that theory, if I spend $12,000 to gross $100,000 then I should be able to spend $24k to gross $240,000 but that aint gonna happen. I have already reached close to my saturation point. So what do I need to spend to get the “extra” business I need? And what is the ROI of the “extra” money that I spent above the 10-12%? Those are the things that I look at. And YES…my marketing has shifted more and more online but I still get a good ROI from traditional mass media. I utilize TV and am buying it cheaper now than I have at antime in the past 10 years.

5. What are your thoughts on online reputation management? Are online reviews of dealers the next IT thing?

Online reputation is and will be important to a dealers survival but it is just old fashioned word of mouth that uses technology as its method of delivery. Dealers that were proactive with positive “old school” word of mouth should handle version 2.0 with ease.

6. What are your thoughts on the future of dealerships as many people start shifting their shopping patterns towards online research and browse? What can dealers do to adapt?

I remember being at the NADA conference back in 1995 and 1996 and dealers were scared to death about the Internet replacing traditional sales people. As a matter of fact, there was a speaker at one of the seminars that predicted the demise of sales people by the year 2000! That didn’t happen. What dealers need to realize is that the Internet is just another form of marketing…and for most consumers, its the preferred method of shopping and researching for a vehicle. That is why it is imperative for dealers to stop resisting the internet and to understand that it is not going away. Embrace it abd give the customers what they are asking for. Go with the grain in your sales/shopping process…don’t go against it.

Thanks for your time Tracy! Readers, if you have any more questions for Tracy feel free to add them in the comments. Hopefully we can keep the interview going. You can also find Tracy on Twitter @myersauto, as well as the official blog of the Frank Myers Auto Family

Again, if you would like to be included in our Car Dealer Interview series, please drop me an email at will(at)easyautosales.com or twitter us @easyautosales.

Interview with Eric Miltsch of Auction Direct USA

Will — Mon, 01 Jun 2009 16:14:03 +0000

Check out our interview with Eric Miltsch, the Internet Director for Auction Direct USA Used Cars Superstore. He also blogs professionally at WhyBuyUsedCars.com in his effort to help change the way consumers buy used cars.

If you’d like to be a part of our Car Dealer Interview Series, please shoot me an email at will(at)easyautosales.com or twitter us @easyautosales.

1. Eric, tell us a little bit about Auction Direct USA and your own career in the auto industry?

Auction Direct USA Superstore is a unique used cars dealer intent on changing the way consumers buy used cars. We’re passionate about improving the entire buying process for automotive consumers – starting with the online experience, the in-store experience and continuing with the post sale relationship. Every element is fertile ground for improvement. My automotive industry experience actually began with Auction Direct three years ago, shortly after the company opened its doors. I’m not a traditional car guy and have never worked for a dealership. From my perspective, we’re not selling cars, we’re making it easier and more enjoyable for people to find their perfect vehicle.

2. How has Auction Direct USA been specifically affected by the current economic situation?

Like many dealers, the credit market issues has been a challenge. It has somewhat limited the total number of available solutions to credit challenged guests. However, the current economic state has also made more consumers consider used vehicles. As more people feel the effect of the economy, they want the assurance they’re getting the best value. We’re fortunate that we’re positioned as the low-cost provider of quality use vehicles within the markets we serve. The buying cycle may increase for some, but eventually they find the best value.

3. What expenses have you cut from your daily operation? What new programs have you added to your daily operation?

Auction Direct runs as lean as possible, keeping a cautious eye on expenses. The expenses that were cut, or re-balanced, include those items simply not providing a positive ROI. Technology expenses always need to be monitored as well. We work with our vendors to get the best pricing; tracking advertising/marketing expenses is definitely a priority.

One new successful item is our Order A Vehicle Program. If we don’t have the vehicle a customer wants, our In-Store Locate Specialists help them quickly find the exact vehicle within our large auction network. A customer’s vehicle purchased via this program is usually delivered to our location within five to seven days. This has been very popular because of the simplicity and speed of the entire process. Customers are amazed at how easy it is to complete their purchase.

4. Have you seen any trends regarding selling cars outside 100 miles of your dealership? Does it pay to get people from around the country to view your cars?

Traffic, leads and sales, from outside 100 miles of our locations, continues to increase at a moderate pace. Consumers are looking for the best prices, especially big-ticket items like automobiles. Referrals play a big part of our business too, we make it easy for customers to connect with family and friends to help “spread the word.” The extra exposure has resulted in vehicles being shipped to California, Germany and even to The Congo.

5. What has been your most useful tool for selling cars?

Its not necessarily the tools that are important, its the message sent out via those tools. We believe a key factor is a well designed vehicle detail page. Our detail pages quickly provides customers with everything needed to make intelligent buying decisions. Another useful tool is our in-store research computers. We encourage our customers to research competitor’s prices. Lastly, it all comes down to the most important item: qualified sales professionals committed to helping our guests have the best experience possible.

6. What do you do to foster customer loyalty?

Loyalty comes only once trust is established. We begin building trust the moment a guest walks through the door. Open and honest communication helps foster that loyalty. Our used cars blog, Facebook Fan Page and our Twitter account are just a few examples of how we’ve improved our communication methods and built authority.

Creating a memorable, positive experience before, during and after the purchases also helps. Our customer’s loyalty is demonstrated by their repeat purchases and especially from the word of mouth/referral business we receive.

7. What are your thoughts on online reputation management? Are online reviews of dealers the next IT thing?

It appears traditional dealers may get the short end of the stick with online review sites. I’ve seen several sites with nothing but continuous streams of negative reviews.These sites are even pushing their RSS feeds to Twitter. Unfortunately, dealerships may not be equipped with the proper resources to manage, monitor and respond to the negative reviews. Nobody is 100% immune – we’ve had our share as well.
The key is quickly identifying the comments and providing a professional response. If the opportunity exists to correct a problem for an unhappy customers, it needs to be seized. Google and Twitter alerts can help; the best solution is a social media monitoring program. (Think Google Analytics for your brand ) Monitoring your brand is critical given the power of the online customer voice today.

8. What are your thoughts on the future of dealerships as many people start shifting their shopping patterns towards online research and browse? What can dealers do to adapt?

Online research will continue to grow as tools become easier to use and access. So many dealers realize consumers want detailed descriptions with multiple photos, video capabilities and vehicle history reports – but its not stopping there. I see the integration of social tools playing a larger role in the decision making process as well. The ability to provide vehicle information, comparison shopping tools and user-generated content in a easy to use environment – with multiple entry points and contact methods, will make things even easier for car shoppers. We’re excited because these tools fit perfectly with our philosophy of changing the way consumers buy used cars.

Thanks for your time Eric! | Thank you too!

Readers, if you have any more questions for Eric feel free to add them in the comments. Hopefull we can keep the interview going. Again, if you’d like to be interviewed on our blog shoot me an email at will(at)easyautosales.com or twitter us @easyautosales