Dominic, since oh what a pleasure a pleasure is to have you here, No thank you Richie! Well, it’s Omar with you.
How are you doing today, I’m doing good, I’m doing good, just working through everything with all these dealers getting used to the new way of selling? Yes, a year of wants trials and tribulations, but it seems to be a lot of dealers from what I’m hearing you’re getting comfortable with the appointments and the way things are going.
So it’s it’s good.
Things are picking up again and you know I wanted to tell you something: Dominic 85 % of the online consumers doing everything today online I mean they’re even buying there’s, even the ability for you to buy a car, like the Jim Ellis group, happens to be one Of the groups that my good friend is a corporate trainer there and they actually been set up before the coronavirus is gon na go on two years now right where they deliver cars, they do up a competition, I’ll walk around competition and they do it on YouTube And they also do it on Facebook, custom audience and they sell cars out of the state.
What do you look at, but you see a lot of dealers.
I have a few clients.
One happens to be a very sophisticated, independent dealership down into Virginia area, and they do out of 150 cars a month about 7075 or from out of state a very big retail market, just from customers buying them from the width Wow Dominic.
I want home that I ask you something.
I want you to go over your program.
I’m gon na take my screen off the dealer side.
What you, what your program is for dealers and I’ve been looking at royal for quite some time.
It’s gon na be now nine months so yeah.
I would never bring a warranty company.
Never have I done that before, because I’m not too big on that.
But warranty is so great that I think all my dealers should sign up on this.
So go over the program.
Well, Richard preciate, the opportunity number one to explain the partnership we do between you and connecting with warranty chimp.
It really is giving us a great tool for to get into dealerships, especially in this environment, where you know, people have maybe having trouble getting a financing, and so with our product.
Here we will be like this is something that could not only be sold at the time of sale where the the lender may have restricted the amount that they’ll advance it.
So, by using the warranty chimp program, you have to very competitive products that we’ve are offering our accelerate and then our red line, which is commonly known as exclusionary coverage and the nice thing about the program like I was saying before not look at.
He sold at the time of sale, but if it’s, you can also sell it to your previous customers, where you go back to your salespeople that did not buy at the time of sale or service customers.
If you have a service department, the only difference between the two programs is there’s a waiting period and it’s you know to prevent pre-existing conditions and it’s 30 days and a thousand miles, but the customer doesn’t lose out on anything if it’s a two year 24 month, The service contract, for example, they had a 25 25, so the customer doesn’t lose out.
It just protects the insurance company and the if the dealer is on a retro, the insurance company, to protect the risk, but a part of the warranty chimp program with talking about going back to the previous customer.
It also includes where it can can connect to your CRM so dealer that has a BDC department and or just service files.
Part of the warranty chip program is a weekend set up where actually the dealer can, because we set them up directly with warranty chimp and they can go in and schedule announcements based on whatever they want to say to their customer, so we’re just giving them a Great tool to market to their customer and include it because a lot of the customers, if you’re going after the time of sale beside like I said we have an interest rate financing because if to go to a customer and they pay 1,500, whatever the service contract Is with any what they’re looking for a lot of people? Don’t want to have that big expenditure all at once, so we offer interest refinancing and it’s up to 36 months.
It’s half the term of the service contract yeah and you know what I’m so glad you brought that up, because deals have been using the internet for quite some time.
I remember back in the day when all the trainer came out, you know, and there wasn’t even a website that was called a landing page.
It’s today, a landing page used to be a splash page.
They used to call it.
So I was in a dealership and we took all the inventory and put it on eBay Motors and we rocked right.
Oh it there’s a press release about that too.
But anyway, what I’m trying to say is they’ve been online a long time.
Dealers are having such a hard time with marketing.
Okay with they’re, not picking the right audience.
I see them on Facebook all the time, picking the wrong audiences, it’s a mess right.
So let me tell you something: the opportunity for this warranty is when a customer that just bought a car from you two years and you sold them an older car old age unit.
Okay, they’re coming back to you in two years later now you they want another car.
You can’t even put another deal together with them right.
Your competitor is going to, even if he takes a shorter deal to get the customer.
Well now we have a retention to what I call a retention process.
Mr.
dealer, that customer that’s previous to you comes back.
You don’t want to roll the car.
Without the warranty go to warranty.
Jim will give you a code and that customer gets a warranty through the dealer, fully Commerce they log in there boom-boom-boom that easy, and you know what you you sell it, because it’s 18 months at zero interest, am i right, you’re 100 % correct and we made It so easy, if you, if you just log into warranty, chimp commie, you see like the way the platform set up.
It’s just like going.
You get it the way everyone’s been shopping with Amazon.
You know, since they’ve been stuck at home, they just go in.
They look at which plan is best for them; they click, add it to the cart and then just event.
It’s like put your purchase information in this far once you verify the coverage that you want and then you just complete the purchase and everything’s emailed to you right then in there and what’s was interested Dominic about your process.
Okay, is that it’s so user-friendly! You know I’ve been looking at warranty, Jim the website and it’s so user friendly.
It’s not funny and the other thing is as the consumer it’s much lower.
They save money, doing this warranty and the beautiful thing about it.
Mr.
customer Europe, if you have Z, I mean don’t no problem zero interest for 18 months.
Why wouldn’t you do that and you’re protected, and we all know that when a car has a problem, the customer has a hard time making a payment, and why is the very hard time? Because you only get so much money in your budget.
So mr.
dealer, it’s protecting right, your lending institution where they’re looking at you and you’re late and all that a much less because the deal does get monitored by that.
So it’s a return and it’s a win-win for all parties.
Okay and that’s what’s important here, and this is why we decided to go, live, and I’ve checked this warranty company out very respectable, very good warranty.
I backup this warranty in flying colors for years now, a lot of warranty companies have reached out to me right and the reason I don’t want to bring them, because god forbid there’s a claim and it doesn’t get paid or something hey.
You know what Richie you referred.
These people now are right and I boob just in a different level, I’m just a marketer for them.
So that’s what I do marketing right, but hey, listen! I don’t want that problem with you.
I don’t have a problem.
Every dealership should be signing up with this company because if you look at their website how many claims they’ve put through and what they’ve done, it’s amazing how they’ve taken this industry to the next level as a warranty card, not that well yeah.
As you know, rich I’ve been in this business between retail and the service contracts I for almost 40 years.
I was my family, as you know, the car dealerships in the in the New Jersey area, but I’ve been doing this for 22 years and rich McCabe, the owner of royal administration.
We worked together for almost 20 on and off and Royals been around for 30 years and, like you said, if you go to the website, you could see that we have almost two million contracts and force we’ve paid over a billion dollars in claims.
The average speed of answer is under two two seconds, so this the company is very stable.
All the products are insured by a rated insurance companies, so in the unlikely event like after 30 years, he’s still going strong but in the unlikely event that the Royal was around, the products are insured by an a-rated insurance company.
So the claim solo is get paid.
Well, you know what I just found that I’m pretty transparent guy.
I just realize your last name stand sold and you know family owns dealers.
How dumb will be poor was one of the first guys when my show started tweet two and a half years ago.
Right now and he went to the studio and everything he’s my first guess that I have him on youtube.
I Paul’s a great guy he’s, got a great product to helps to retain customers.
You know yes very true and he pulls I’m unbelievable and I’m a good friend of his you know, and he even even went to my cigar event.
I had a cigar event at the beach club and he went and a few guys from your father store one too with John Grillo.
So you know it’s funny.
It’s like it’s more world.
You know, and that’s the beautiful about this industry that it’s it looks big, but it’s really got its really really small.
So I mean I’m so glad that we talked and all that before the show – and I knew that because Paul’s a great guy pulls unbelievable.
What a great owner that guy is and his son is the same way you know and I’m so glad we met.
You know we connect it now.
You know we got our relationship ourselves for quite some time now yeah and I really believe a lot of this product, and I have a few dealers that are used.
Car dealers and one of my partner’s owns a used car lock is our company name is ideal motors and partners in that store.
But anyway, what I’m saying is we get a lot of customers that are negative equity and if you put a shop smart right now, you see hit.
I have an ad for him there.
I have an ad for a few dealerships, but I have an ad for him because what our our model is it doesn’t matter how upside down you are we’ll.
Take you out and put you in a new car.
All right, we’ll put you in a used car with no problem, so it doesn’t matter and we trade anything if you have an RV, if you have a motorcycle and that’s the ad, that’s there, we trade everything and no matter what you have as it traded as Long as it’s in the transportation business, we buy it whether it’s a bike, a motorcycle, whether it’s a a crew, it doesn’t matter what you’re trading it doesn’t matter.
If it’s a dump truck it doesn’t matter what kind of rig you got we’re trading everything it doesn’t matter.
I mean you can have an 18-wheeler, we’re trading it right.
That’s what our brand is like, where we trade everything, there’s nothing.
We don’t trade and what happens with that? Sometimes we don’t want to sell a car, because the typical used-car lot will roll a car without a warranty.
We really want the warranty and we don’t even have a shop, but the only reason we want that warranty is to protect the customer and our reputation because dealers that sell used cars, if you’re not with the warranty you’re protecting, not your retention, only you’re, also protecting Your reputation because you know how comfortable that makes you feel today, Wood reviews, you deliver a car that car comes back six months later or seven months.
God only knows why the tranny blew okay, guess what you’re covered yeah with a bad training you’re covered.
You know, let me just address that warranty not only covers you in the retention.
Not only covers you on making a little bit of money, but it also covers you on the reviews, because that customers not upset.
You can’t believe how many customers go to Yelp and trash the dealership where they sold me a broken car.
The only reason they say that is because they’re not covered you’re 100 % right 100 % right reaching so increase your your reviews and increase your retention and increase happiness to your customer and, what’s the best advertise, I don’t care what you do word of mouth.
Okay, definitely, oh, is it work? You were referred to us by a good friend and that’s it.
That’s all she’s got to say I do a lot of business like that.
It’s not who you know it’s who knows you that’s.
What bottom line is it’s? Who knows you? It’s not who you know and what this does live in social media.
It’s people that don’t know you start getting to know you right and that’s it’s not no more.
You know used to be years ago.
I have a lot of contacts that don’t mean anything no more.
What really matters is, who knows you that’s the key thing who knows you and how they know you when you ask somebody, for you know, do business with this gentleman because I know him.
Okay, that’s what it is I mean, and the products for reputation, I’m a digital guy right.
So I look at everything in a different perspective.
I see dealers with Yelp getting hammered, hammered.
There’s a local BMW store that a guy gets two or three use a week with his cars.
You know what that tells me that tells me they’re, not selling enough warranties, or that tells me they’re getting a lot of problem cars.
They might not have a good buyer but they’re definitely not selling enough warranties, okay, because when they have a knock in the engine, they never took care of it.
The only reason they’re saying that, because a customer had to pay for it once the warranty company paid for you’d be surprised with that customer rights on Yelp.
You know what they write, what a great company they fix.
My car and they’re out there there’s a lot of Yelp saying they fix the car, the right time the right place.
You know I bought the car at the right place.
It had a problem, you know hey, you want to know something, that’s what a warranty does.
So those dealers that are not using that for reputation, management and now we have a solution.
Mr.
dealer, if you’re maxed out on the approval, you can still get them financed 18 months and still make money with us.
Like you be with a warranty company, you still make you still make that money.
Guess what now you have another outlet why you should be, and over 90 percent? Okay, because if you take 10 or 15 deals and you’re delivering a hundred cars and you take 10 or 15 deals, you just put it through warranty Jim, your numbers are gon na go up and you know there’s a lot of thoughts on that.
There’s.
A lot of people say the dealerships are 50 or 60 percent penetration.
I’m waiting for some data really because I go by the data that might one person or two people tell me that’s what I go by.
I go by information from data source.
How many cars are getting registered and how many people are buying extended, warranties? You know, so I’m waiting for that and I want to do a live about that cuz.
It’s not enough.
You know they should penetrate more and with your product.
The dealer has a great solution: now you can get a customer and sell them a car.
Your competitor doesn’t have to because your competitor, it’s just gon na, take a deal even if it’s a no deal put them on an old age unit just to roll the car to get the service business.
Now you don’t have to do that now.
So what can you have it yeah and another to your point that you’re just talking about as far as the customer, if they don’t have a service contract and and lose their job or excuse me if they, the car breaks down and they can’t get to work And they can’t make those payments, I mean that’s all reality and very true, but you know as good as even the best of dealers that serve get their cars a hundred percent ready before they sell them.
Things happen if they’re mechanical and things are still likely to happen, so it it doesn’t make sense for them not to offer the extenders of a vehicle service contract on top of everything they do to get these cars ready for sale, and so I couldn’t agree with You more as far as that.
These are something that’s it’s needed.
It only protects the customer as far as keeping them happy in the car on the road keeps a dealership, reputation and again get those repeat.
Customers, like you mentioned before, Richie yeah, I mean it’s all about the retention service, but it’s also about the reviews at what what do reviews do? Reviews the metrics of review, equal retention, you’re, a that’s! What a review does right so now you’re retaining your customer, your competitors, not getting that customer and taking a shot, he’s rolling a car just to see how much service position gets and he’s building how many cars are in operation and his dealership to increase his service Business so now, mr.
deal, you have a solution and every dealer does has a solution to get a warranty outside that finance deal, and you know what if the customer tells you, I don’t want to pay fifteen hundred and pay interest on it.
Oh, I’m so glad you brought that up, because we have this solution for you: zero percent, there’s no interest request 18 months and what the customer tells you? Oh no.
I don’t want to do that.
Now.
You dealt with the objection now you can bring them back to your finals.
That’s right! You see so now you’re just dealing with the objection because it could be an objection, got to get the warranty right.
So now, mr.
dealer, you have that objection handled.
Oh, you know what Richie I don’t water.
Your wants, yeah, I’m not putting in fifteen hundred dollars extra on my contract.
You know what we have this and then you go back and forth and they might go for that for your extended warranty or for us, but at least you’re, giving the customer an option.
That’s right in its own.
I give them training oh and you’ve, been in retail.
The customer throws at you and excuse identifying, what’s an excuse and what’s an objection.
Okay, that could be an objection.
You overcome it by giving them a solution, because how do you overcome an objection? You agree with them and you throw out a solution, represent correct and maybe they’re walking down and not even doing the cardio because they want that included in the price, because the salesman messed that up right.
That’s another thing that happens all day long every day.
No wake a Salesman, I told them how much a warranty was, and that was included the price.
No, they ask the salesman.
How much is a warranty? The salesman went to the desk, went back and said he is the price of my warranty.
Now the customers perception is that that was excluded right.
Okay, so that’s what you deal with now, you, you spin it right out and say: hey! You know what I agree with you.
Mr.
customer, don’t put it into finance, I have 0 %.
Why would you for 18 months? It comes out to what $ 100 a month, and you have to lay out your money you’re using somebody else’s money you’ll, be surprised what I can do as a finance guy.
With your solution, I can close more warranties by using warranty chip well and you’re, and I’m dealing with the objection go ahead, but what you’re doing is giving the finance man there’s additional tools to help close every deal that they can.
You know so the warranty me chip may not be the best, the right solution for one customer, but it could help that next customer get the car, keep it on the road by having a vehicle service contract.
So if something breaks down, if the car breaks down, they can go back to the dealer and that’s another thing.
I didn’t even mention about the program four year warranty chimp dealer program.
If they go back to the dealer, a so a dealer there and they have a hundred all of you, dr.
Boll hundred dollars is waived.
So they have an incentive to go back to the dealer.
Helping your deal to keep the retention, making sure that the repairs are done right at their own dealership and for those dealers that don’t have their own repair center, but has a arrangement where they could get all their cars serviced before they sell them.
Won’t even do the same thing if they want for that type of dealer.
So absolutely, and you want to know something it’s such an easy way to deal with an objection that, if I’d be a manager in a sword, I I see this live.
I immediately call it and I’m immediately getting this deal of program.
Why, if anything, I use it as a tool to reclose a customer okay, because they come to the box and they’re all 1800 for warranty or two thousand whatever the number is.
Oh, I better put that in the deal you try to get a credit card.
I don’t have enough money down.
I’m on my credit card.
Okay, here’s this solution.
Mr.
customer, then it’s typically only ten percent down reaching vo and they use like the premium here.
The end of the contract, I mean here’s a great solution here.
Is I mean that and that what customers that gon na go? Let me tell you zero interest.
What purse is not gon na go for free money? It’s free money.
I got a layout fifty-two, 1800 out of my pocket, what I could put that money in a growth fund and by the time I pay you I make somebody I mean it’s a no-brainer, convert your cash deals into finance deals.
Convert I mean it’s so easy to have that conversion rate.
It’s never a problem.
That’s what I understand about these deals.
It’s so easy to convert somebody from a care steal into a finance deal and they’re terrible at it.
But hope you got to do is identify it to the customer and show them well the same thing with the warranty identify to the customer and show them and let the customer decide.
You know what I don’t close anybody.
I let the customer decide because it’s in reality, it’s all about the customer.
That’s right, sorry to interrupt you, but you got ta, explain it.
The right way, guide, Dominick, know this, and I was just agreeing with you that you have to give the customer the option and if you don’t offer it to them, then they’re not going to be able to make that intelligent decision you know about.
Do I want to include the service contract in the financing, don’t want to go through warranty, chimp and get that 0 % the interest on the service contract? You know so in what, unless you offer the customer the tools that you have available as a dealership? You know they’re, not gon na know and be able to make the right decision.
So now, let’s talk about another thing here right.
Another thing that a lot of people miss if a customer is not an objection in our expansion, they want to walk you.
They just don’t want to defame it.
They go to warranty Jim right.
There good go home, tickled, pink and they’re gon na tell the table.
You can’t believe all neighbors when you pull up a driveway, enable nosy driving a new car wow.
That’s a nice car right.
Oh then they have a story to say about the dealership.
You know, I wonder they get a warranty.
The fact they give me a warranty was zero interest yeah.
What is that gon na? Do that’s using word of mouth so, the more I look at this solution for the dealership.
The more I see what a great opportunity is for marketing great opportunity for retention, great opportunity for reviews, so why I mean why mr.
dealer, what do you do that you got a if I’m a dealer, I would take a hammer and hit my head if I Would say no to this solution and again now your customers out there.
You have a story, you know we all know.
What sells is the story.
When you have a good story, you’re gon na say you need to sell anymore, there’s a lot of people that say close or this doesn’t matter.
If you have a good story, you’re gon na sell.
That’s all that really people look at what the story is.
Tell me the story line on this Bank when you say that that’s what you’re gon na sell.
So I mean you got great retention.
You got great reputation and now, if the customer tells you no okay, so you put them back to the other thing right.
Just like a payments, you ain’t somebody at a really high payment and they want a low payment.
You put them in a different car.
Then they come back to you anyway, because now you establish the value of the price right, that’s right! So what do you do? And we’ll warranty Jim so worst case and then, if it’s all true, they drive home with a warranty, Jim warranty and guess what they’re gon na tell their neighbors.
I can’t believe this.
We wanted a warranty, but we really didn’t have it in our budget.
We got zero interest.
What’s it currently tell you, and it’s really so it’s so easy, like I said if anyone just goes to the warranty, chimp comp site and they can see how easy just put in a little information that gives you a few options we limited to, like.
I said a red line, which is our best coverage, which is exclusionary and then accelerate, which is very, it’s called static component coverage, meaning that if it’s stated in the contract it’s covered – and this is covers everything from engine dirt – rear trans, some electrical brakes, air conditioning.
So we want to give them two options.
This way they can even have the best or they have something to protect them against most of the major repairs that could happen, and so I took all I can do.
Richy’s suggest to people go and look at the site, see how easy it is to get a quote in print, very, very user-friendly and it’s a great product, and you know what we’re gon na take this to the next level.
I mean this is great.
This is a great solution for dealers Dominic, it’s always a pleasure.
I mean it was great engaging with you and it was great.
You know having this live with you and you know what we won your back.
Let’s review, what’s going on we’re all about follow up, you know, that’s what our main focus is I mean if you don’t follow up you keep like.
You can’t say that you have a good, follow up, train or a good follow up pool.
If you don’t follow up, so let’s have a follow up with this, and it’s so great that I met you.
I’m so like impressed that I met you, but it’s unbelievable rich is a pleasure as well to be partnered with you.
Helped him put this warranty gym program together that to bring out to your dealers.
I really appreciate your time.
Thank you so much time I talked to have a lovely day and enjoy the rest of the week.
You too, my friend take care.
