Published on March 12, 2014
5 Dealer Principles Your monthly update on selling more cars and parts more profitably 28 August 2013 Since the first of June this year, the effects of the 2010 Vertical Agreements Block Exemption have come into play. The stated hope of the European Commission is that removing the 2002 Motor Vehicles Block Exemption will allow car manufacturers a greater degree of autonomy in organising their distribution networks. But what will be the real effect on dealers in new sales? The franchise fear: Are you good enough?The Franchise Fear: Are you good enough? A look at the effects of the 2010 Vertical Agreements Block Exemption. In this issue Secrets of Success How Alex Lawrie and his team at Skoda Liverpool delighted one couple. 1 2 3-1 Tips and tricks The Power of Point of Sale. 3-2 Video of the month And the star of the month is… 4 Your coffee cartoon
2 Dealer Principles 28 August 2013 “Vivamus porta est sed est.” The good news first. Resale price maintenance is still restricted so manufacturers cannot dictate that their products be sold at certain prices. Further, manufacturers are not permitted to combine an exclusive distribution system with a selective distribution system: they cannot restrict sales based on territory. And now the bad. Dealers could now be in the position where they can only sell one brand, in a location limited by the manufacturer. Manufacturers can now specify that they wish to be the sole brand in a showroom, limited by a five year contract after which the dealer is free to end the contract. Manufacturers can also set limits on the territory where dealers establish outlets. A dealer cannot transfer their business to another authorised dealer without the permission of the manufacturer. If the manufacturer wishes to terminate the association, they do not have to follow dispute resolution procedure, allow a minimum period of notice, or provide a detailed reason for the termination. Manufacturers can prohibit dealers from sub-contracting their repair and maintenance work, forcing them to offer the full complement of services. How do CSI figures fit in? Now that manufacturers are not obliged to give specific reasons for termination, CSI figures have never been more important. Even Ford, relatively lenient among manufacturers, specifies in their Agreement with dealers that the right for dealers to sell freely in the network is subject to performance criteria. So, in a world where manufacturers can terminate their association with you without warning and without giving a reason, how do you protect your business? Luckily you have one essential tool in your dealership already: CitNOW. Satisfied customers mean satisfied manufacturers. Whether you use CitNOW in Sales or Aftersales or both, the exceptional customer service that CitNOW videos provide ensures that your CSI figures will reflect the quality of your business. In Sales, a big part of the impact of CitNOW comes from the fact that the video is a surprise. In Aftersales, it’s a bit different: we highly recommend that you advertise the CitNOW service you offer on your reception desk. Having a point of sale available on your service reception is going to increase the impact of your Aftersales videos. Why? I’m glad you asked. Reason 1: it gives the customer a reason to bring their vehicle to you – it makes you stand out. Where other dealers are just offering a written evaluation, you go the step further. Reason 2: it alleviates a customer’s fear of being taken for a ride. By showing them the faults (and features)on their vehicle, you are prioritising transparency and honesty over everything else – and that’s something that’s bound to impress your customers. Reason 3: it sets expectation. Once the customer knows what to expect, they can anticipate it. So when the video flies into their inbox, they watch it straight away. And this means that they’re far more likely to approve work. Tips and Tricks Image
3 Dealer Principles 28 August 2013 And they don’t just use CitNOW for every inbound enquiry. The sales team use video to sell accessories; Alex introduces himself to all new customers via video if he’s unable to do so personally; and the business guys have made video an essential part of their cold prospecting process. To have a sneak peek at how they’ve used video in their new car marketing, have a look here: http://www.thetmsgroup.co.uk/clients/alexlawrie/fabia/index.html And that’s not all. Sometimes even the customers feature in the video: One elderly gentleman came in without his wife - she wasn’t very well. My sales executive Gerry was showing him the different colours available as his wife didn’t want a bright red car. Gerry said half-heartedly ‘Why not do a video?’ The gentleman was about 70 but they did the video together and it was fantastic; they sent the video to his wife…5 minutes later, he phoned his wife and they bought the car. To hear more of Alex’s story and learn the secret of his CitNOW success (hint: it’s all about the management), go to [link to video]. When Alex Lawrie was sent a video from a Landrover dealership while he was looking to change his car, he was, in his own words, blown away: I thought it was fantastic. The salesman talked me through it, gave me a personal invitation to have a look at the car…it was just fantastic. You may have heard this story before. It’s the story of hundreds of delighted customers across the UK who have received CitNOW videos. Except this time there’s a twist: Alex wasn’t just a customer, he was the owner of Skoda Liverpool, a dealership in Merseyside and having experienced the power of CitNOW for himself he immediately adopted it in his business. They’ve had CitNOW operational for 3 months now, and in that time they’ve made over 270 personal videos and sealed at least 29 deals in which CitNOW was an essential factor. Secrets of success Alex Lawrie Damon Owston, Lloyd Jaguar Carlisle Take a look for yourself at: www.citnow.com/?sv196208205 Why it works: Excellent introduction: explains what’s going to happen Confident, authoritative narration Clear explanation of service history Persuasive close: sets out steps forward, personal without being pushy Brad Pitt of the month: If one of your team makes a video that is particularly stunning, send the link to us at email@example.com and if we feature it in our monthly newsletter we’ll send them over a lovely bottle of champagne to share (or drink alone, whatever their fancy). Here’s to you Mr Owston.
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CitNOW is the leader in automotive video marketing. Our easy-to-use apps make it simple to transform sales execs and technicians into heroes. This is our ...
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