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5 Key Qualities to Transform Great Managers to Great Leaders

Great dealerships need great leaders Leadership is a word we often hear—simply put, it is an individual’s ability to influence, motivate, and enable others to contribute toward success. Though it is a role some tussle to uphold, it can be mastered. If you’re a current or aspiring manager, it’s crucial to focus on good leadership as it can be a huge asset to advancing your career. In addition, dealerships need great leaders as leaders help direct a dealership’s resources for improved productivity and achievement of goals allowing for mutual success. Effective leadership comes with life-long learning about oneself and the responsibilities of being a leader. Individuals have their own inner lives, and they are driven by their beliefs, aspirations, values, and fears. These interior elements vary from one person to the next, guiding individuals to take different actions. Interestingly, the choices people make for themselves and their teams are extensions of reality in their hearts and minds. Therefore, those who seek to lead impactfully and take dealerships to the next level must look at their internal experiences and decipher their traits. We often observe a basic level of self-awareness managers have about themselves, such as, I am a team player, I can’t trust anyone, or I believe in transparent communication. Often top-performing sales personnel become great managers, but what separates managers from a leader? The difference between managers and leaders Managers and leaders complement each other but are commonly two separate people. A leader inspires and encourages others to achieve visionary goals. Whereas a manager deals with their department’s day-to-day operation and ensures the tasks are being performed as expected. They focus on their performance but carry minimum responsibility for their peers. Generally, managerial tasks in dealerships include: Review inventory to ensure the proper mix of stock Stay abreast of and comply with federal, state, and local regulations Direct and schedule the activities of department personnel Make sure the service quality meets customers’ expectations Plan training and development for team members What does it take to become a great leader, and why do dealerships need great leaders? Leadership skills are critical to maximizing the efficiency of the whole team, which facilitates achieving the overall vision and goals of the dealership. Though different leadership styles can be utilized at different times, some qualities are essential to transform great managers into great leaders. Constantly learning and striving for growth Great leaders refuse to remain stagnant and continually seek opportunities to develop themselves and their teams. They strive to improve their self-knowledge to identify strengths, limitations, and areas of improvement. Furthermore, leaders have a vast appetite for learning beyond their role in the industry and appreciate the company of experienced professionals to accelerate growth. Their team members’ personal and professional development is equally valuable to great leaders. Good at identifying people who are better than them at specific jobs Great leaders do not shy away from acknowledging their limitations. Instead, they fill the gap by finding people who are better than them at specific jobs. Knowledge of one’s own traits and teammate personalities provides understanding for employing the right person for the right role. Measuring characteristics and dynamics is relatively straightforward with data-based behavioral analysis tools such as PDP. PRO Team’s well-trained and certified consultants can support hiring and placing individuals in the role where they can contribute to the highest of their capabilities. Focus on their team as much as they focus on their customers The automotive industry is people-centric, and employee satisfaction matters as much as customers’ satisfaction. Furthermore, dealership culture influences customers’ service, directly impacting referrals and sales. Therefore, employee development, proper training, and positive work culture are imperative to retaining talents in your dealership. Great leaders recognize the value of their people and their professional needs. They are mindful of identifying ways to help, enrich, lift, and empower their teammates. Anticipate market trends and adapt to changes quickly Shifting ahead requires leaders who can take bold and strategic actions. Having the vision to anticipate what lies ahead and taking proactive steps to market conditions can keep you and your people ahead of the power-curve and able to react more quickly when things to change. Great leaders stay abreast of the trends and recognize that uncertainty is a part of the auto industry. From digital financing to touchless deliveries and everything in between, effective leaders adapted quickly to save the day. Consider both the bigger picture and the details Tracking the big picture involves stepping back from time to time to scan the horizons beyond the auto industry, for instance, assessing the effect of high-interest rates on vehicle affordability and sales revenue. Conversely, focus on details such as how much you have to make up on profit per retail unit to stay even with last year. Do I have a high penetration product to increase profit per vehicle retailed, or is there a hi-tech marketing tool to increase the market share of my dealership? Constantly evaluating the market and utilizing industry resources for awareness of the trends and indicators would enable managers to broaden their perspectives and transform into leaders. Dealerships need great leaders for mutual success Great leaders adapt to their surrounding environments and empower the team to succeed. Furthermore, an effective leader understands the strength and limitations of their team, is decisive—adapts quickly to changing situations, and treats the team with fairmindedness and equity. Dealerships need great leaders to foster a culture of growth that leads to mutual success for dealers and their team. We are here to support your success The auto industry is experiencing fresh challenges and could see significant changes as the market shifts. PRO has been supporting dealers with innovative strategies to keep profits high. Reach out to us to see how we can boost the profitability of your dealership.  

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Successfully Deal With High Employee Turnover in Dealerships and Retain Your Top Performers

Employee turnover in dealerships is a long-standing challenge. A COX report states that 72% of franchised dealers say finding and hiring the right employee is challenging. The turnover eats into dealers’ profits, and impacts revenue in many ways, including wasted time, resources, and training costs. In addition, the improper fit delivers poor customer experience and impacts sales and upsell opportunities. Your dealership could combat high employee turnover and nurture a top-performing team for the success of your stores. It could be done in the following ways: Understand the prime reasons why they quit Build a positive environment and productive team Combating turnover with—better hiring and employee growth and training Understanding the reasons why they quit: COX study found that the top reasons why employees consider looking for a new job are as follows: 48% better pay 27% more advanced opportunities 25% better work-life balance Creating a motivating pay plan could help reduce employee turnover in dealerships, improve productivity, and retain the best talent. Furthermore, dealership’s success depends on its people and their behavioral traits that create the highest level of job satisfaction and endurance. If the salesperson possesses the right mix of behavioral characteristics, they don’t need to overwork to succeed. Getting the proper behaviors from people is very much related to their compensation—rewarding requirements of the job expectations and disincentivizing any behavior outside of expectations. Three critical factors to consider while developing a motivating pay plan Gross profit: Finance Manager solely compensated on gross profit of car deals and not incentivized to sell a balance of products for a fair price. As a result, behaviors can occur that lead to misunderstanding for consumers on what they are purchasing and how much they are paying for it. Customer satisfaction: This should be a key consideration while developing a compensation plan. A plan that clearly articulates and appropriately rewards critical behaviors enhances CSI and consequently leads to low cancellations. Setting the right expectations and objectives: Produce income for the F&I office/ dealership that is balanced and fair to the consumer. Consistently presenting options to consumers and setting a clear goal of how many products they need to present and how many a consumer is expected to purchase. Building a positive environment and productive team: 67% of franchised dealers say motivating and retaining quality employees is a challenge. Creating a supportive work environment is elemental in building an effective team and enhancing the perception of the retail auto industry. A positive environment would let the employees feel cared for and see a future for themselves in the dealership. In addition, it would allow you to retain quality employees in your stores. Here are a few ways to create a supportive environment and build productive teams: Recognizing employee accomplishments. Making your staff feel valued, and appreciating their contributions produce organic determination to go the extra mile. Hand-written thank you notes and employee recognition programs such as celebrating appreciation day on social channels make a dealership a great place to work. Leadership programs. Effective leadership comes naturally to some, while others could use leadership programs to help build team management skills. emotional intelligence, clear communication, constructive feedback, and problem-solving abilities can be developed to bring out the best in the leader and their teams. Even the small changes in the team and culture lead to big success in the long run. Ways to combat employee turnover in dealerships— Better hiring: Taking the benefits of personality and cognitive assessment will help you get ahead of the problem and identify the right person for the right role. Additionally, the personality and cognitive assessments help you understand the focus area of training for your team. Assessments provide insights on how to better communicate with your staff. Employee growth and training: When dealerships do not have a strategic training and development plan, it leads to inconsistent store experience. In addition, impacts employee performance. With comprehensive training, your sales team can transform into friendly, knowledgeable, and trustworthy people customers need to complete their purchases. Furthermore, proper training guides sales teams to effectively offer related products to increase the value of a sale. Thereby enhancing employee performance, raising employee satisfaction, and preventing turnover. The problem of employee turnover in dealerships could be curbed through tangible solutions. Concrete ways to build powerful teams and reduce employee turnover include building a positive work environment, creating a motivating pay plan, and providing recurrent training to enhance employee performance and drive growth. PRO has been supporting dealership success for the last three decades. Call us today to get custom solutions for your unique needs.

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Sales and F&I Teamwork Win Championships

Quality has no substitute: Don’t build a system in which mediocrity is rewarded Sales and F&I teamwork: In a meeting with one of our long-associated dealer clients, the discussion kicked around why it is critical to have a team where all players fit best together and not be separated like oil and water. Bringing the Sales team and F&I together and encouraging Sales and F&I teamwork takes effort, but this is what differentiates a thriving dealership from a mediocre one. On one hand, there is a Sales team chasing the number of vehicles sold, and on the other, there is an F&I team pursuing higher profit per vehicle. Sales and F&I have their own roles in the court. However, better coordination among the players leads to scoring more shots and winning championships. Therefore, it is important to assess the following: Does your Sales team complete proper paperwork before turning the customers to F&I? Do they inform your customers about the next step in their buying process or leave them in the dark as to what’s next? Is the checklist completed before turn-over to F&I? Ultimately, it is not the quantity but quality that counts. As Red Auerbach stated, you do not win with the five best players. You win when those five players fit together best. Benefits of better coordination between Sales and F&I teams: The best outcomes are achieved when sales and F&I work together to maximize every opportunity. Transferring F&I knowledge to the sales managers is a good idea for improved profitability. Several customers express that an unpleasant experience in the buying process is the abrupt way the sales team turns them over to the F&I department. As a result, the customers do not understand what to expect. Customers trust the process better when you inform them adequately and set the right expectations. Additionally, working as one team would significantly reduce the customer’s resistance to the F&I process and products and raise dealership profitability. Moreover, better collaboration among departments will enhance customers’ experience, positively influencing the CSI score. When sales and F&I develop better coordination, develop a strategy, and act as a team, they will succeed collectively. As Phil Jackson infers, develop a game plan, and throw yourself into the action. Actions that the dealership leaders can take to improve Sales and F&I teamwork and profitability: 1. Communicate effectively: What we call front-end operation, the sales and F&I teams need to clearly understand their role in helping a customer complete their purchase. Profitability starts with setting up the shared goals between departments and creating a winning strategy. Hence, promote a culture where teammates communicate clearly with customers as well as peers. This would foster teamwork and transfers the trust built by the Sales personnel to the F&I manager. For example, before directing customers to F&I, the salesperson should set the right expectations and tell the customers what will happen next and how the Finance manager will help complete the paperwork necessary to put their car on the road. As Coach K said, teaching and practicing effective communication brings everyone together as one. 2. Encourage sync meetings and inter-departmental alignment: Each week, F&I managers must be encouraged to review dead deals with Sales managers to identify solutions and see if there is a way to go. Review the three Cs of credit. Namely: Character—defined by credit and loan repayment history. Capacity- measures income and ability to service a loan or line of credit. Collateral- asset(s), in this case, the car you have them on. A fresh set of eyes and ideas with colleagues could help teams find constructive outcomes and raise the dealership’s profitability. As Tom Thibodeau said, we can learn something from everybody. 3. Data driven approach for hiring the right person in the right role: Sometimes the best talent for the job is working in a different position in the dealership. Finding the right person for the right role demands in-depth review and assessment. Personality and cognitive assessment are a data-driven approach that provides objective data for better decision making and building stronger teams that fit best together and your culture. Ensuring everyone understands their role as a player on the court toward getting a team win will assure better results and happier players. As said by Michael Jordan, you must act to make it happen. We support many multi-rooftop dealerships and help build efficient teams that perform together to attain common goals and profitability.  Call us today, and we can help you identify the diamonds in the rough and polish them into a gem to ensure your success.  

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Can I Afford This Car? Don’t Let Your Shoppers Stop at This Question—Help Them Afford it.

Market conditions and affordability Understanding your consumers and their buying behavior is as important as keeping an eye on your vehicle tires. Tires have an enormous influence on the safety and performance of an automobile. Making sure you don’t drive on a flat tire is key to vehicle performance and so is keeping a close watch on market conditions to assure your continued sales success. Therefore, creating affordability for car buyers and planning for changing conditions is a sales professional best practice. Affordability is an issue looming over the automotive industry. It is not new that inflation is on the rise and the inflation rate is the highest in 40 years. Moreover, consumers have started to consider need versus want and feel the pain of high prices at gas pumps and dealerships. Therefore, in today’s state of the economy, customers need solutions to be able to buy the desired vehicle. Why affordability matters to your customers To understand affordability and why it matters to your buyers, look at the following findings: 95% of consumers get paid bi-weekly or twice a month. 80% of people live paycheck to paycheck. Besides the tight economy, the affordability issues also originate with the way the workforce in the US gets paid. 95% of Americans get paid biweekly or twice per month. Additionally, 80% of the American people live paycheck to paycheck. This means, they have significantly less or no spare money to spend freely. How can dealerships help their customers purchase the desired vehicle and ensure that your business meets the financial goals? The dealerships can help in creating affordability for buyers in multiple ways. Furthermore, Smart Payment Plan is one of the most effective means of helping your customers afford a vehicle. Offering lower payments that match your customers’ paydays to increase gross considerably and, in addition, sell more F&I products. What does it mean for your customer? Smaller paychecks that match their paydays Convenience of automated payments Paying off debt faster (up to 8 months faster) What does creating affordability for car buyers mean for you? Improved cash flow Easy to enroll customers Most importantly, create affordable options for your customers so that they can buy from your store. How can you get this tool implemented in your dealership to create affordability for car buyers? PRO Team can help you easily set this up in your stores. Our smart payment associates have been helping customers with payment plans since 2003 and are compliant in all 50 states and creating affordability for buyers. Over 4000 dealerships nationwide have been serving over 70,000 customers buy a vehicle and pay conveniently. Call us today to ask how this plan will grow your profitability and why you should get it today.

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Common Dealership Challenges—and Solutions

Dealership life is certainly not monotonous. Dealership personnel comes across new opportunities, challenges, and prospects to close the deals and meet sales goals. Assisting customers find the desired vehicle, providing them with the necessary information, or managing objections is a significant part of one’s routine. In addition, dealership teams manage many low-key tasks essential to efficiently carry out their day-to-day duties. Those tasks sometimes convert to common dealership challenges. For example, locating the right vehicle from the large inventory lot, securing new leads, and protecting assets. In other words, oftentimes, even small tasks could be more challenging than one might imagine. That said, we have compiled solutions and strategies to overcome some of the most common dealership challenges to make your lives easier. 1. Locating the car right away for your customers: You may have been in a situation yourself or heard other salespeople seeking assistance locating the right vehicle from the large inventory lot. It is frustrating for the salesperson to keep their potential customers waiting to show a car matching their needs and liking, especially for a minor reason. Solution: Spartan GPS is a great solution to search any vehicle from your lot by vehicle number, color, VIN, or a specific model. This product will not only pinpoint the vehicle’s exact location instantly but also equip you with more details of the vehicle to share with your customers. The sales enablement app displays all the vehicle information and pictures in one view. In addition, it lets you quickly send CARFAX info directly to your customer from the app. 2. The car doesn’t start when you take your customer to the car for a demo: After you’ve found the vehicle and taken your customer to it, maybe it wouldn’t start because of a dead battery. Bringing your customer to a car that doesn’t start can sacrifice the sale. It could just be a dead battery, but now they think there’s a major issue with the vehicle. Solution: The same technology- Spartan GPS, monitors the vehicle’s battery health with daily reports. Not to mention, the product improves the process to reduce customer and sales team fatigue caused by unnecessary delays. 3. Asset protection: Auto theft has increased roughly 11% nationwide in the last two years. Vehicles are going missing from dealerships and driveways. Many dealerships are facing challenges in protecting their cars from being stolen. Don’t be another statistic or victim of vehicle theft from your store. Solution: Advanced inventory management by Spartan is an effective means to safeguard your assets against theft. The product deters joy-riding and unauthorized vehicle use. Additionally, it provides considerable benefits to your customers with a vehicle tracking solution that allows law enforcement to recover your vehicle quickly and easily in the event of a theft. 4. Identifying the right leads: Who’s in the market for a new vehicle, what they are looking for, and how long have they been in the market. These are some of the top questions when it comes to generating the right leads to grow dealership sales. Furthermore, how to get to your shoppers before your competition and what tools could help achieve this goal are prevalent challenges for dealerships. Solution: An AI-based advanced data-driven tool can help generate the right leads and get you an upper hand in the industry. The technology provides data to determine who started, stopped, and ramped up their shopping in the last 24 hours. Furthermore, the tool also helps with vehicle acquisition solutions in fluctuating market conditions. Reach out to us to schedule a demo of this advanced AI-based tool. 5. Creating value for your customers: The F&I department plays a critical role in building a revenue stream for a dealership. However, customers often express their doubts about F&I products and their values. Creating value for your customers to close the deal is something that F&I personnel aspire to, but many find it challenging. Solution: Having your team conduct regular reviews, role plays, and training are the fundamentals of ensuring that your F&I department offers real value for the customers and adds to their experience. Moreover, role plays and regular training to review your process could produce significant results in your sales goals. PRO has been providing comprehensive training to some of the top-performing dealerships. Call us today to see how we can help you overcome common dealership challenges and turbocharge your profitability.  

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F&I Manager Tips and Best Practices to Successfully Turn Your Department Into a Profit Center

The F&I (Finance and Insurance) department is often the last phase of the vehicle buying process. Strategic interaction between the F&I Manager and the customer plays a critical role in overall F&I profitability. Well managed interactions allow F&I managers to properly assess their customers’ needs in relation to their driving behaviors to match them with the right F&I products. Highly successful F&I managers understand that the skills and attitude needed to excel in this role can be learned and developed over time. Therefore, we have created a list of F&I Manager tips and best practices to run a successful F&I department. What is the F&I department, and what does F&I Manager do? The Finance and Insurance (F&I) department is one of the key profit centers in a dealership. When a customer buys a vehicle, the salesman refers the customer to the F&I department. The department offers add-ons to customers’ vehicles to protect their purchases, such as vehicle service contracts (VSC) and GAP insurance. In addition, the F&I Manager helps the customer find suitable auto loan options and handles legal documents related to financing plans and agreements. The F&I Manager has one of the most critical jobs in the dealership. Notably, it includes obtaining competitive financing options for the dealership’s vehicles buyers, maintaining compliance to protect the dealerships from legal issues, and creating additional income by selling F&I products. Here is a more detailed description of the responsibilities of the F&I Manager: Product sales: Leverage opportunities to offer aftermarket products, service contracts, and insurance programs Knowledge of F&I products and services and ability to sell “intangibles.” Assess buyers’ needs—finance and payment options to present them with appropriate auto finance plans Compliance: Knowledgeable in state regulations regarding finance and the Fair Credit Reporting Act Abide by federal, state, and local laws when preparing paperwork, finalizing financial transactions, setting interest rates, and working with lending institutions Maintain the highest ethical standards serving as a finance director and/or Manager who is committed to a high customer satisfaction index (CSI) Financing: Building positive relations with the lenders and insurance vendors Maintaining current knowledge, learning more, and training staff about finance and lease programs Tips for F&I Manager 1. Nurture your relations with lending institutions, VSC provider, and insurance vendors Many buyers look for financing options when buying a car. While the consumers can get auto financing from a bank or credit union, it could be cumbersome and perhaps on less favorable terms. Building a positive relationship with your lenders will enable you to get special financing approved for your customers. In addition, it could significantly improve your customer’s experience and satisfaction. It is essential to consider that building and nurturing positive relationships with lenders, VSC providers, and insurance vendors do not happen overnight. In other words, staying connected with them and maintaining your network would require frequent communication. Therefore, setting up time every week to strengthen your network is a good idea. 2. Stay current on tech tools knowledge and review reports With changing shopping preferences and behavior, digital tools can support your success. Adapting the technology to save your customers time and enhance their experience would add much value to your dealership. In addition, using data and reports would enable you to make better decisions. However, if tech tools are new for you, refresher courses and training could help improve your skills and make you a pro. Notably, setting time aside to pep up your skills would help you move ahead faster. One of the best ways to build a new habit is to identify a current habit you already do frequently and then stack your new behavior on top. This is called habit stacking. For example, “When situation X arises, I will perform response Y.” After I conduct weekly training for my team, I will take time to learn a new productivity tool. 3. Reassess market changes and profit centers: Being updated with the market shift and trends and aligning your F&I portfolio to match the customers’ needs require regular consideration. Not to mention, monitoring your portfolio will keep you adequately equipped to serve your customers and stay relevant in the market. For instance, when the car inventory return to normal or close to normal, how will it impact the used car prices? How would the F&I products align with that scenario? 4. Conduct save-a-deal meetings: Each week, take time to review dead deals with other managers to identify solutions and see if there is a better way to go. Review the three C’s of credit. Namely: Character—defined by credit and loan repayment history. Capacity- measures income and ability to service a loan or line of credit. Collateral- asset(s), in this case, the car you have them on. A fresh set of eyes and ideas with your colleagues could help you find constructive outcomes and raise your dealership’s profitability. 5. Attend and conduct weekly F&I and sales training: Weekly sales and F&I training are excellent resources for you and your team to stay updated and efficient. Moreover, conducting weekly training would present you with opportunities to optimize processes and practices through methods such as role-plays. Additionally, taking support of result-driven professional F&I trainers would build your staff’s confidence and techniques, thus, improving your bottom line. How to become F&I Manager: Dealerships want F&I managers who possess the necessary skills, driven attitude, and experience in a dealership setting. Here are proven tips to help you become a successful F&I Manager: F&I training: The first step towards starting your journey to become a successful manager is to obtain professional training. To emphasize, F&I Manager training has several benefits, including objection handling, closing deals, compliance, and ways to enhance customer experience. Acquire F&I products knowledge: Connect with your current F&I department to learn from them. Ask questions, go through the product brochures, and learn about the products your dealership offers. Another excellent way is to get in touch with professional dealership consultants to discuss your career progression and obtain guidance. Customer centricity: Customer centricity helps

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