Yeah Becky: how are you and welcome to motivate me tremendously throughout the years I mean.
One thing is that I’ve learned a lot from you and it’s great motivational that you’ve done to me.
You know it’s crazy.
How you we’ve come so close.
You’ve always helped me.
No matter what you’ve always been there so tell me: I have this whole thing right now, I’m gon na tell you have a friend of Mines.
I was working in the car business then he’s doing with some company digital finance, retailing of people that want to buy a car or even people that want to refinance a car mmm.
So he was uh.
He was in the automotive industry was selling cars and now he’s doing this, and it’s just virtual, I mean what are your thoughts, that what are you hearing about this F & I digital retailing? What is it well there’s a lot of couple things that you said there first and foremost, does a dealer really want to go ahead and offer their Evan I, on a virtual, a complete virtual utilizing, a virtual, a manager, and that means that the customer that they’re Doing the complete process from beginning to end to finalizing the transaction one-line to a virtual of a night person, and that is available and from what I understand does remarkably well.
And dealers are able to increase their there of an i performance and or it makes for greater impact in their economic performance, and now it doesn’t stamp reason that it would, but it just does and/or.
Then you have the digital retailing platform, the platform in their different providers, Frattini that are out there.
As you well know, roadster is one is a great digital retail platform and it provides various ways to get to the end result.
Net that result is a customer.
Has a better understanding of what their payment might be and or what they may qualify for to some extent, then, of course, and, and I use that name there are, other providers are now also pretty much the same thing.
They, the customer cachapa vehicle online and then also be able to determine payment options that sort of thing and the term in some sort of correct and accredit criteria.
Then we also have that another provider who actually offers the hard inquiry to a final approval through a bank force completely online and it’s really dependent upon when a dealer wants to offer that customer.
Whether they want the customer to go through the entire digital journey.
To a to finalize with an approval or not and or if you want that virtual off my manager, what exactly does that look like? Hopefully I answer that right, okay, so Becky.
Do you think that in the next couple of months, maybe five or six months, our deal is gon na be ready to go on there and do financing online? Do you think that’s a reality? Oh, do you think that that could only be a thought? I think it’s more than a thought.
I think that there is reality of that going on right now, with the innovative dealers who quite get where this is going in the next year to three years down the road, then you’ve had the dealers who are hey.
Why change I’m doing really well now and fax, even through this code, fit post coated or Kovach nineteen crisis? Many of these healers weren’t necessarily affected all that much, and that is not enough to get them to change the way that they currently do.
Business and let’s face facts, they’ve been very profitable doing it way that they’ve been doing it for the past 20-30 years or more, and some of these guys are diehards they’re, just not going to change.
Why change? Because right now, hey I’m getting a job dog! Oh we’re selling cars and we’re making more profit than we ever had before.
So, what’s the reason to change, then you have the other mindset.
You have the other dealer, the innovators, if you will the earlier adopters who are saying you know, hear what you’re saying, but why not offer the customer both? Why not have non-traditional and traditional options that are available? Why can’t we cut this time down and short the time it takes for our customers to buy a car, to look for a car and also to obtain financing? Why do we want to insist that customer is going to spend the entire day in the dealership buying a car? What kind of sense does that mean so they get it? That, and, and especially with what’s happened now it has given them the reason to say you know what let’s put these policy and procedures in place.
Let’s take a look at this and you know let’s take charge of what’s happening now and over the next two.
Three years from now, but not every dealers buying it no and you know Becky.
I want to bring this up.
Kovach 19 right in America right we usually prepared when something like this happens.
We don’t put a process in place unless we hit the wall in the automotive industry all right since I’ve been in it.
The only way you’re gon na get a deal to change, if is when it costs him money in his pocket.
If not entertained, you right.
Okay, Kovach 19 happened just like September 11 and we put procedures process measure points together.
That’s what Kovac 19 is here.
In the last eight weeks we are prepared or preparing ourselves now for covert 19.
That’s gon na be over.
I said I covered nine seen nothing in China lasts.
You know what I mean as a joke.
I saw that on Facebook by the way wasn’t my joke.
So I had a meeting with Bart and Dominic and a few of my partners and Michael, oh and I said, oh by the way – that’s not gon na last and it was at the beginning.
They said really it’s not gon.
Na last I was going on well, there’ll be another one coming out now we don’t know so we better put a process in place for the next one, because let me tell you we were on track to do eighteen point: five million cars we’re right now on Track to do 12 and a half yes, here’s the issue with that.
Okay, the inventory of the OEMs has reached an all-time high.
Now, why is that? Because we’re not selling cars, so they do the projections and they retooled for what needs to be in the marketplace.
Right guess what they’re not selling anything? Okay, the registrations, I’m scared to even announce the registrations.
I got from IHS in my inboxes and I would scare everybody now.
Let me tell you this right now I have the data and it’s scary.
The old kind of high-end inventory is a problem because now we’re we were on track to do we’re not doing it.
So the OEMs have an all time.
Output of inventory – that’s crazy.
So here it is mr.
consumer if you’re watching.
This is the best time to buy a car, because we’re gon na put any deals together right now, by the way I’m going on.
My cable show on Sunday, not this Sunday next Sunday right huh right.
So let me tell you that’s what I’m gon na promote because, like I got ta tell you this: it’s that old time high and we got ta start selling some cars right now.
Yeah, hey we’re! I mean we’re on track to do eighteen point five million and we’ll interactive to do what 12:45 or twelve point seven million cars we walk graphically because it is two months has really hurt us okay, so you brought a valid point with Kovac 19 and how it Could be back into you know, F and I online, and I got ta tell you something: oh you got a search.
Is I want to refinance my vehicle? I wan na finance a car, and you see all these platforms that are doing it now.
There’s a percentage of consumers that are gon na, go for that and here’s the problem, these companies that are doing it mr.
dealer, that could be costing you money, because what about? If that lead, they’re able to get and sell that lead to your broker? To your competitor broker, I tell you what I got a few brokers on my game that my lease that’s the last thing you want mr.
Okay, so pay attention to this, and if you don’t change now, they’re you’re gon na have a problem.
Okay, it’s just like in the 90s, I remember when internet came out, nobody wanted a BBC Doctor John Menard chick and the Nicholson group we put a first BBC ever that was in a Honda, okay, before anybody, okay or with the Nicholson group.
At the time, there was nothing on online when eBay Motors came out and guess what we put the whole feed on there.
Okay and then we sold cars on eBay Motors.
Okay, that’s what I press released back in the day in 99 is out with me and dr.
I Got News for You.
This is a major change.
I mean deals got to take action to this because, if not they’re gon na be left behind, because you’ve got brokers out there, you got different people that are in the car business.
Caravana has been doing this already for quite some time.
Do you want them to keep eating up your market share.
Tell me what you think about that.
Well, I’ll tell you what I think about it.
Carvanha has certainly made a big big hit in the map.
In my opinion, they have a proven model and that and that customers will buy online and and obviously they’re what the number-8 retailer pre-owned retailer in the country that they sold more pre-owned vehicles than I believe, Olivia, sonic and automation combined.
So something like that has to tell us something that something seems to be working, but, ironically enough, there are so many out there who say that the car bonnet is a colossal loser, they’re losing millions and millions of dollars and they’re not very successful.
And I guess they kind of convinced themselves that sooner or later that carvanha it’s going to be out of the game, whether that’s true right wrong or not.
I got to tell you this.
The model is definitely proven, and if it’s not, then the genies are already out of the bottle and the reality of it is it’s done, whether it’s done by them or somebody else, somebody’s going to pick up the ball and they’re gon na run with it.
Look at just the other day we were having this conversation about Amazon.
You know who would have ever thought they now people don’t want to hear that either, but the reality of it was.
People were thinking he’ll in law, who’s gon na continue to he’s.
Gon na buy these products online who’s gon na buy clothes, online who’s, gon na buy shoes online, nobody’s gon na be buying stuff online and look I mean we’re buying stuff online all the time now, so it’s think about it anymore and of course, Amazon.
At one time they were losing colossal of big money as well, but they turn that back way around real, quick and now look where Jeff Bezos is today.
So where is this whole thing going? I you know, I don’t think we have to reinvent the wheel.
I just think that, like you mentioned, I think we’ve got to be a lot smarter about this and I can’t it car guys.
You know you you’ve been very, very successful doing it your way for so long.
I get it, but you’ve got to be able to think out of that that you’re gon na think outside the box and you’ve got to think about ways that you’re gon na think about your competitor and if it’s not carvanha, it’s Carmack’s.
If it’s not far Echo Park, if it’s not part Echo Park, it’s somebody also is willing to go ahead and do business.
The way that you don’t want to do business.
Look at custard, Netflix for craps sake.
Look what happened to now talk about a big freaking giant going out of business because they wouldn’t see the light.
Let’s, let’s realize hey, you know what, instead of making customers go out of their homes to go ahead and rent these movies? Of course, blockbusters whole motto was be late.
We want you to be, you think I paid a lot on those penalties right, late penalties, and so they would.
They didn’t want to push their their thinking outside of that and meanwhile Netflix just took it right and bring with it and then Oh where’s blockbusters today our business, so the thing is maybe you’re not going out of this is so much and but you’re just not Going to be as successful we’re, you know why in the world, would you want to push that business to somebody else? Why would you not want to be able to offer the customer the ability to do the shopping and financing online earlier on? Why, wouldn’t you want to show? Why would you want to help to reduce the time it takes to buy a car? Why what is the sense and and giving that business up to a competitor, see bad part? I don’t get anyway, I’m good of.
Do you not get this thing I mean do not understand.
These are all the tools.
I mean one thing that we’ve talked about enough tonight for the longest at least I have is utilizing all the tools in their toolbox and every tool matters that we bring to the table not having being versed in leasing or M & I fundamentals and understanding for Banks for niches or deal structure, understanding ways to be able to communicate better with our customers and building better relationships are so important and attracting more customers retaining their customers and impacting our results.
So we got ta use all this utilized the technology and the tools that is available to us to make a greater impact.
Why do people get that? I don’t know why they I well.
I think I do have a lot of dignity.
I don’t like it’s.
It’s funny you should say that, because the problem that there is right now is dealers, especially in the area, are men deal is out here, are not really advanced.
Ok, when I came to Apple, I flew in from Texas, I was at Charlie, Thomas organization.
I was there to the Nicholson group, just like this company Apple and the reason we did a BBC, because we had the data about the phones back in the day would sales people – nobody was doing that out here.
So they had a phone woman was not a BBC.
They had a phone.
My Charlie Thomas Chevrolet, that worked like this.
I used to call it a detention room.
So did dr.
John and sold it Steve Nicholson, because that’s what it was a detention room.
You take sales people that are good.
Talking like me, and you were talking adverse was on the phone, no good.
So that’s what happened.
Then I flew there and then I gave garsten the idea and they says.
Ok, I want to do this.
So that’s what happened, but gostin was a very.
He was one of these deals.
I was always thinking the next step.
These dealers out here don’t think like that, not only out here in Jersey, some of them are advanced, and some of them are not that big problem.
You take a state like Texas, you take a state like Florida, it’s all about selling cars, it’s all about rocking and rolling.
Nothing not interested, ok, where our people are no 30 % of the output of pickups get sold in one state, Houston, Texas and the whole state of Texas bottom line.
Ok and the story.
Ok, let me tell ya these dealers out.
It then don’t know how to do this, they don’t know because it’s always changing and it’s always moving forward to the next step and I’m seeing it I’m seeing a real in online.
I don’t go a lot of social media, you know Becky.
I know you realized throughout the years I’ve changed my whole social media exposure.
I go in and out and I’m done I don’t post a lot if I got to post a blog or something I do it, my good friend, Brandon Wright or for friends of Mines that use it.
You too, I only do it to my friends.
That’s it! I don’t really charge for that.
I just do it to my friends.
You know what I don’t go: a lot of social media, but I’m hearing a lot on social media because we have schools or listening tools, and we hear the chatter right and also our clickable.
Has this chatter that we hear it’s a listening tool and we get information, there’s a lot of people talking about digital retailing abroad, in other words across all spectrums consumers, business pages groups – everybody is talking about digital retail, not just automotive.
I’m talking about.
Did you know retailing as a whole, yeah yeah? We have the data about these hashtags they’re using and all this is what we are.
Is it we information gallery? You know clickable, that’s what we do or data, basically a data driven company right.
Oh, that’s what we do.
So, let me tell you, there’s a lot of chatter on this digital thing and digital retailing.
Do you know, there’s a lot of stores that are going online right right now that warrant your local economy stored on developing ecommerce sites? In the last four or five weeks you know I can bet I can bet JCPenney would wish that they would have gotten a lot more innovative and then there’s water, your peer stores and, and that unfortunately, are hurting really bad, because they didn’t see this alternative and Working you know side by side, and you know brick-and-mortar is so great.
Please don’t get me wrong it really.
It is um, but you have to work everything you got to work at all.
You cannot not look at the way that the world is changing and saying: hey, I’m not changing with you.
Guys are all on it on your own.
We’re gon na keep doing that.
This is the way that we’ve always been doing it.
We’re waiting until the customer makes their way into the f9 office to discuss these terms, and you know what I be.
You know what I’m saying: I’m really one of these days.
These best customers aren’t showing up in your your M & I office and if they are they’re showing up what the check may not for the exact amount.
That’s what you’ve got.
Is that what you want? Because that’s what’s gon na happen, and it is a matter of building that engagement, taking advantage of these tools and technologies and being able to communicate the customer way and being able to be that differentiator and communication is key, it is key, it is how you engage.
Is how the customer feels about you in that relationship and, let’s not kid ourselves, and especially today, more so than ever before.
It is about the relationship that you have with that customer and getting started with their way.
I don’t care if it’s chat, I’m here.
If it’s texting, but you got to get out from under that that best any gate, you know one of the things that you know.
I also talked about – and I keep talking about this so hopefully I’m not boring but I’ll talk about how we you know back in the day in 1997.
You know, I know I’m really trying to aging myself a little bit here, children.
So you know, we’ve met customers out at the middle of a showroom in alternation days, and this is where we were presenting menus for the first time ever that we weren’t using the volunteen mentality burning the best fruit to the box.
That’s closes down, which I was really good at doing that too, but anyway, this was the complete opposite, and let me tell you something: it was bizarre.
It was like.
Are you kidding me? This was radical, radical right.
Nobody had ever proven.
I wish everybody would understand this because I don’t know how to get through to these guys because they’re so freaking hard at it.
But I remember it was radical.
We were actually disclosing to the customer base payment.
The terms their interest rate before we presented products and people were freaking out, they’re like how the hell is this gon na work.
Are you freaking out of your mind that could get back into the box? I’m not talking this is the.
This is the truth.
This is what it was in fact for the perk.
I would 13h, I don’t think in the hell us it’s all going to work, and then we found that the more that you’re up front with a customer.
Maybe customers out of chaos, hundreds of feet away from in my office.
We didn’t drag the customer back into a nap night office to print up the documents we loved the clothes from there.
We left them at a kiosk and walked back to this admin office to print up the documents.
And now let me tell you something: you know what they all said: don’t do that holy crap you’re, giving customers lies and talk themselves out of the field.
Are you crazy? I just got the customers sign up for everything we’ll come to fight.
We proved that you could absolutely leave a customer.
Mom do go print up the deal, everything’s good, everybody’s, fine, there’s, never a time that time period, whether it be a new car store mega store that the customer ever talked themselves out of it.
I don’t know, hopefully people.
So I want to talk about the same thing.
You’re talking about the same thing, it’s said in the eating a customer and he does.
Where am i beating up, I’m meeting them online? What’s the difference, I’m glad that this neck leg did this happened but glad got the car dealerships go, stop go where I live, because a lot of I call them is out there with SEO right.
So, oh I get you traffic, I’m branding you and no conversion right.
I know a lot of these companies that I deal with right that I’m their back end in the full all right now you need to convert because it’s called digital retail early.
So those guys that kept telling about SEO to a customer and a CEO, I’m not interested now, its digital retail, okay, now you’re gon na rate who’s, a real company and who’s, not right! That’s what I like about this, because the digital retail! You probably have a lot of customers and have nothing to do with the car versus in different areas that are converting everything into e-commerce sites that are selling.
Now they have let go their SEO companies because wood is about now.
It’s digital retail.
You know: we’ve had companies like Home Depot and Lowe’s who look smart for the last seven eight years, but so we’re in the digital retailing for quite some time now.
Right, not automotive, of course, because automotives, the last person to get involved with anything right like sales, funnels they’re, the last person to get involved with sales funnels and SMS follows we’ve been doing sales funnel S & S follows for the last seven years years or seven Years since I just left my other company right, so we’ve been concentrating on that with triggers we’d had a follow up, customers had a dump that lead.
That’s no good, no, more clean up your data and Infusionsoft.
You know all this kind of stuff.
The car buzzes wait to the end oh and her going on in the industry for the last six or seven years to e-commerce, business has blown out yeah grown up when this coronavirus happened.
This is what really happened.
I got in less than 48 hours on order for a hundred and a Economist landing pages.
We got three teams that developed this and we had adjust outsource because they needed the work done right away.
People that sell sneakers people that sell shirts people that sell brand.
The church I mean it was crazy right.
The car business is not even at a level not even close to it.
Well guess what guys it’s gon na happen, you guys are gon na have to go ecommerce because, like Caravan caravana did it.
Other companies are gon na, come that do use cars and I’m gon na get into it.
We don’t even know how to promote cars for digital retailer.
Let me tell you: Brandon and myself have a great product which is called competition walk-around and we already tested at his place.
You do that and you do alive and then you boost that live okay and you put it on YouTube and you pay pay search.
Now the consumer is seeing how this walk-around is working and what kind of professionals you have in your company and with companies like judges, you bring in Kelley Blue Book, you bring admins, you bring these companies to be your judges.
That’s the consumer! Right now that you’re gon na sell digital, we have a whole process about this digital retailing in place to reach out to the customer.
Not only for that, but also the the marketing aspect of it right, because now we get custom audience on Facebook and we do a boost ad and we do it on YouTube.
And now you heading it, that’s why my live at one time had twenty thirty thousand forty thousand, we were testing a be testing on custom audience and seeing what was going on it doesn’t matter now what’s happening.
Is I’m getting as much more traffic on YouTube because I’m just spending more money on YouTube? Do an a/b testing, that’s what we we do a t-test again we lay out money and figure out.
What’s working and what’s not right! That’s why? Because it’s about the Moose Ted! That’s why I never go live unless I go on my fan page because we promote it right and what we’re doing is getting data enough data to see if it’s gon na work and for what industry it’s gon na work.
Okay! Well, you work it’s not in the car business at all, we’re in different industries, my partner’s alright, so, and so we gather data.
So that’s why that happens now what’s gon na go on is this is big because that’s how you got a cell today, Jim Ellis group did that and they deliver a lot of cars online, yeah, okay online for quite some time right, yep! No! It’s happening in a lot of different stores right and dealers.
Don’t you can’t have something that your competitor is beating you on right, so you got to make sure everybody has the same product, because now you got problems and this digital retailing is getting bigger in different industries and here’s the problem with that right.
Why deals got a jump on this today? Not yesterday, because now the consumer is getting used to it? What happens world creatures of habit? That’s what humans are creatures of habit? That’s why I smoke about 5 cigars a day, because I have habit right.
Ok, smoke were creatures of that.
Here’s, the problem with that now that consumer is used to you’re, creating a habit of them buying stuff online.
What’s gon na happen in the next year and a half or two years now they need to buy cars online too.
You know what the stores that are offering that guess what you lose right, because you’re dealing with the human people and you’re dealing with creatures of habit.
So unfortunately there are so many there.
There are a lot of there are imitators out there.
So, let’s just you know they really are they get it they’re doing it and they’re doing a great job, and you know with you, don’t have this necessarily all figured out? We don’t have this all necessarily figured now.
No one has proven the recipe yet bringing the secret sauce of me consulting work, but I will say that there are some really great innovator dealers out there.
You really Jim Ellis is one of them and who really understands the benefit.
His message was so awesome.
Oh yeah, he really nailed it, I mean nailed it, and I was so I’m so happy for him because he gets it.
Beaver is another Automotive Group.
They get it great message.
It’s all about making the buying experience, easy fun and safe, easy fun and safe, convenient right.
That’s where it’s all about convenience factor we’re not gon na we’re gon na making you go through hoops to buy card from us.
We are going to make this easy fast and bond and safe, easy, fast, fun and safe.
So I don’t.
I don’t get what is so hard to figure out about this whole thing right.
I just don’t get it! It’s like.
Why can’t you figure this out? Yet we still are working with dealers who are waiting, listen to this peanuts that are sitting back waiting until their customer gets into an F and I office to talk about to talk about this this and I stop and it’s like.
I don’t know it’s just it’s just very old school.
It really makes I mean.
I know we want to protect the golden goose right.
We want to protect the golden goose, protect that F & I profit center.
I don’t find you I get that, but is that protecting the eff and I roll I’m gon na say I’m gon na share something you could steal and a lot of body in F.
And I, if you do it right? Okay, consumers, water warranty, consumer one product; okay, hey it’s nothing, it’s not a matter of you jamming it down their throat, consumers, one.
As a matter of fact.
Let me just share something right now.
I got a couple of groups that have reached out to me about selling warranties online first, and this is what I told I say they don’t read.
You brought that up.
Do you know why I’m glad you brought that up for one reason: you’re a fan.
I guy, when he’s done selling product, maybe he missed a warranty.
The customer knows that you have it on your site.
It can be shop, warranty dot at a DC motors calm, it could be a sub-domain and you can put it on your website.
dealer, all rich, oh yeah, so now view penetration.
Seventy percent you can be hitting another twenty percent would an option to finance.
Oh, I said: yeah listen to me, they’re selling, a warranty and if they’re not the customer, wants a remote start wants to load it up.
I don’t want the warranty.
I don’t want the warranty, because a guy probably hit him a twenty five hundred guess what take it away? Take it away from that finance guy, and now you have another outlet to get one sees so we’ll you gon na.
If you saw a hundred warranties now you add that to your penetration now from 75 or 80 you’re at ninety plus, I think what about your retention? Well, I’m just throwing numbers right.
So let’s say you store that 75 % you get five or six customers, they have heard service contact penetration.
I mean, I don’t know what stores you’re in.
But for me it’s probably about fifty seven percent.
Well, this particular rule that seven honor, once the big I mean, did this particular order groups at 72 well know that their stores that that’s our giving wrong, but I think, on the average across the board, I just got want people calling in and going wait a Second, what are you talking about, and you know how that goes.
So, let’s just say that the I from Mumbai, these two stores, they’re born, oh hi, oh yeah and both stores are over 70 % yeah.
Well, the app is probably about 57 %.
If and we have two options, they have the in-house warranty that every car gets every car gets delivered.
If not, they want to live in a car right right.
Well, none of their numbers, but the thing is is that I really wanted to you know for those that are listening in again.
I think you’re making an excellent valid point as far as the impact it has as far as revisiting your customers on either the service contract.
They didn’t take advantage of a time of delivery, make your again back to me back in the day and still try, try it on we’re gon na go ahead and have these spit programs whatever taking place in service to promote service contract sale after after sale and, Frankly, guys it has worked, but a very, very small percentage of dealers good most part, it doesn’t so what you’re talking about is automating this process and we’re we’re again.
That is going back in front of your customer and I think, we’ll get paid by the way.
We noticed that you didn’t take advantage of the service contract.
However, at time of delivery.
Here again, we do have this available to our customers and/or here some different options that you may not have been aware of, and or maybe even some of the ancillary products that you may have that you can offer after delivery.
Why are dealers doing a better job and I see you’ve got ta automate? The process you make what you’re talking about is an Amazon checkout experience which is really cool, so customers, so the dealership is really pretty much following up with their cup, their customer, their own costumer, that’s their customer.
They are supposed to follow up with their own customer.
Well, there was a big impact on customer that has a service issue, makes an appointment go for your website.
Would it be nice mr.
dealer to have a pop-up about your warranty and they can buy it right online that customers having a service issue? Maybe that customer or not a warranty, it’s your site’s, being hosted anyway, cost you so much money, so walk through a pop-up up.
There right extended warranty available to our consumers online yeah click here right now are you custom, but I just bought a car, maybe that inor further than the warranty, because why? Because the deals maxed out and they couldn’t get the advance well, first of all one thing I want to do: I’m going to teach you something you know I always them a teacher right service, contract service, contrac, no warranty warranty, it’s implied free.
So it’s a service contract that we offer to our customers, because no, it’s not free, so I just wanted to kind of help you out with that one.
But here again I think that you’re right that you know you know as much as we’d like to go ahead and do a hundred percent of products, a hundred percent of our customers, 100 percent.
At the time you’re you hit, you hit it on the nail guess what it’s not always happening now, mr.
dealer and Whitney now it may be, the customer, you know, didn’t get a take advantage of a service contract.
Maybe in fact you know we weren’t able to go ahead and fit the service contract into the financing.
Maybe the customer may be at that particular time didn’t: have the additional down payment in order to take advantage of a service contract and things change all the time right.
So maybe I don’t know two weeks could be a month down the road where maybe a customer.
Now has the ability to pay for a service contract that sort of thing, so why? Wouldn’t you want to do your due diligence and revisit that with your own customer? Because if you don’t what’s happening, somebody else is doing it.
Alright, they oh what’s happening is that they they by the public listing that’s available, these other companies and they’re gon na market to your company, your your customers, to why you’re doing it 8yr.
What the thing is.
It’s no risk for you to sell a warranty online right, but here’s the beauty of it.
dealer, you see what digital retailing is.
You start with the warranty and, if they’re buying these warranties online, what does that tell you? Okay, now reach out inbox me and I’ll put you with the right people.
Now I don’t do this, but I know the right people inbox me or call me at six three, one: five, seven, eight nine, oh one, eight or inbox, Becky and she’ll – put you with the right people because guess what hold on.
Oh, let me test that, because I’m saying it’s much easier to sell a warranty online and in finance, you know that let’s see how that goes, and the only thing that’s gon na happen to you.
dealer is you’re gon na make more money.
Okay, I think you retain your customers need priority.
I mean a lot of people say I don’t want to sell a warranty online.
Why not you know? It’s not gon na cost, you more because you’re not gon na kill it from solid in your showroom.
Just adding yeah and eating something right: the stores that I have not dealers, the ecommerce, local stores at dawn, e-commerce, now they’re not closing down within Corona, they they’re fine, but they have that processing because it’s just extra.
It’s on your website, you put a pop-up boom, extended warranty or service contracts, where you say available right click here when they click their bank and financing available.
Oh by the way you can finance it.
So now that customer left your showroom with a well maxed out, so the salesman made up for the money they could handle once he was.
The deal was just maxed out.
Maybe they had a trade, they were upside down by five brain it.
Everything is in the structure right, they left and they don’t have an extended warranty, but they got the pitch.
Do you have any idea? How many dealers I mean it just blows me away about dealer said they just don’t realize.
What’s going on in their own backyard, and it’s just they just don’t get it so back back some time ago, I’m in a dealership in Memphis, but this is a lot of guy talk.
Town! Oh I love Memphis.
Memphis is like oh, I loved it, but go to focus.
Are you kidding me on the glass thanks guys for a lot of fun to work with, I mean just really a tremendous amount.
We had a blast.
We really did at a good time, but the thing was: is that I’ll never forget this is well.
I will never forget the situation and I’m gon na try to go ahead and springboard this to what we’re talking about now.
So work with me on this one.
So here I am, and this big big gigantic Ford dealership will go, nameless will go nameless, but they are selling a ton of freaking cars.
I mean a lot 700 and above I mean these guys were cranking them out.
So I said to the open I director, I’d like you know, what’s really interesting here – is that you guys did do a lot of subprime credit and he says to me he says: well, we don’t have that much back! Okay, you didn’t have much money talking about! Look we’re gon na locate, it don’t get me wrong or anything, but you know that seems a little odd that you don’t have subprime credit here.
Where is it going he’s like? Well, we don’t I’m like it’s got to be going somewhere, something’s, not right.
You can’t tell me that you’re located here and you guys done that subprime credit.
Well, we have a little bit of it.
I said what would you think that you need the percentage of subprime uh? That’s like 10 %, Oh interesting enough down on the other side of the street, come to find out.
There is this other dealer.
Who is I mean, that’s all they saw it.
They had a lot of subprime customers right.
So the deal was that in the bird was three, if you would listen that they would actually pay up 500 bucks for an application for a customer who wasn’t able to obtain fun financing at your dealership.
So a salesperson selection when I’m going to get 500 bucks from my application, go ahead and send my customer across the way here.
So you got us for go ahead.
Solid quarter, professor, who has flipping history? Oh I’ll, do an art beat second.
So that’s what was happening and I’m like do you understand? What’s going on right, so you know what your again here begins: we’re talking about the same thing all over again service contracts.
Oh so you’re, not gon na offer a service contract.
Maybe I don’t know, the price is a little bit off.
This is to say that you’re, a finance person – I know everybody’s up front, everybody’s hunky-dory, isn’t going and say you know what to that customer or by the way, then you can go ahead and take advantage of a service contract to a friend of mine.
Then that’s a better pricing that I can go ahead and I’m giving it better it’s good fun and he’ll.
I mean I’m making a hundred bucks on it right and I’m gon na send this guy down the street, because you’re pricing, you know whatever company it may be, is overpriced.
How many of these product providers I mean over price, their products? I mean they make it to the point where you can’t sell one.
I mean it’s just like it’s just enormous and some of these dealers they have on these stiff, freakin admin fees.
I mean you can’t fit it into their financing.
What do you want? What do you want me to do? I can’t sell it.
Well, you’ll still make a living off of it.
I’m sitting it’s done with the street said of my cutback customer down the street to buy a service contract.
Then I can $ 500.
Oh, so it’s like dealers wait for free car.
This is your insurance manages and you want and you don’t I mean you, don’t realize that and you just let in customers, leave see you later, there’s no revisiting.
No, nothing! That’s amazing! You know you know Becky.
I never understood dealers for chili, even when I eat during apartment.
You know, here’s what I do know, here’s, how I never understood their head really, don’t I make too much money and you know what it doesn’t in that being your heads in your your heads, you’re.
Not you’re making too much money and that’s it.
I don’t care the day they used to spend all this crazy money and ads our newspaper cable, but nobody ever worked our DMS.
Nobody ever went to their DMS and said you know what give me the last three years of the customers that are there.
You know, especially in Jersey.
Nobody did that again.
They used to spend cable and newspaper galore, 30 40, grand okay before co-op cake, and it was not even hold back stupid money.
You guys got your own database, I mean I’d, never understood this.
They wouldn’t me when I wasn’t matted, you know what I did.
I used to print and I used to give a hat a sales people used to give each salesperson for them to follow up these customers today they have all kinds of software, but back in a bit.
I know it’s crazy if you think through this but you’re, just saying what I’m just saying: why would you, as a dealer just to protect yourself revisit it, make sure my finance person take you over these product offerings with you right? Well now we send it down the street.
You know what I mean.
Why wouldn’t you, mr.
Taylor, have company out there in the car business, really good, auto alert, they’re great too great software for dealers? You know what a lot of these dealers out here, don’t even sign up with them.
You know they’re too much or whatever.
You know what it’s never, because they’re really giving you all the tools Richie, you know I have to go into an for.
It frustrates me.
Obviously sometimes I wonder you know why you’ve been happening here left, but I go into these stores and I’m like why? Wouldn’t you utilize that tool, I mean why they they they tell you the customers who are actually coming out from under their manufacturers, warranty they.
Let you know it’s six months out before the customer comes out at their manufacturers warranty.
Well, if it were me and that see – and I get paid the way that I know that you’re getting paid – why in the world, wouldn’t you go ahead and revisit those customers and say, oh by the way.
I understand that you’re coming coming out from under the manufacturers, warranty and wouldn’t you you know – be interested in advantage of our service contract for crap sake.
How hard is that, and the thing is they’ll – actually even create an email for you, so you know that if you have the right, color email, I definitely would do that well, is to do invalidate emails right.
We actually can follow up with every one of our customers.
Send them an email, give them a call.
Let them know hey by the way just want to let you know.
We know that you’re coming outside of your manufacturers warranty for do.
I add something I want to share with you how we automate it you don’t even have I mean you put it right there as a shopping, cart for a customer to be able to check it out and they don’t ever have to come in to a dealership.
In to your store to buy it, and you don’t utilize, these tools see.
This is what I don’t like: it’s not a bitch.
It really isn’t a bitch stuff obsession, it really isn’t, but we want to utilize every tool in our toolbox to make a greater impact.
Like how easy is that you know, I guess, and in the independent I guess it’s either: you’re lazy, you don’t care or you’re making too much about me right right right what dealers don’t have the focus like me every morning at 5:30, we’re all crying! You know by 7:00, yes, you are everything’s out there, the bloggers at the videos – I said, everything’s, grey or rock.
You know Becky they’ve just got focus, they don’t they’re, not focus and they don’t know how to delegate either because a real dealer, a real dealer, learns the art of delegation.
It’s not about the art of selling.
Okay, it’s about the art of delegation and you have a company.
You got a delegate, that’s the key thing! It’s not about that! They don’t know how to do that, because they don’t have any training.
They don’t have any money if you have never invest in themselves.
Okay, they never do because they think they know it all and that’s what the problem is well, no, all right! I got a role because I got a meeting.
I don’t know if you didn’t notice that i changed my my scenery, I’m not at the backyard.
I mean I’m in my office right, yeah yeah me not him, because we have a company meeting for eight weeks now.
I got all these people that just showed up for eight weeks now we haven’t been able to have a real live meeting anywhere.
Like that’s, you know, that’s you know in here.
So there’s people coming in now, so you know that it’s like this is the first time in weeks that we’ve been able to talk, we’ve only talked on zoom’.
We need to have a company meeting now and find out what next steps are for us and where we’re headed and what we’re gon na do next.
Well, I want to thank you again, energy for having me on your show and on Facebook live.
I definitely you know, really appreciate you and you know you can.
I just want to make sure that dealers realize that I’m not I’m not attacking anyone.
I just want it.
Just would be good that hey take a look at what what you’ve got going.
You know what I mean really kind of size: it up really strategize really plan through it.
You know, take a look at what’s really happening and and go all in right and there’s so much opportunity out there.
So just take advantage of it and don’t let others take advantage of you so Becky I got ta say something I thank you for always being there.
You know throughout the years I’ve had a rough time.
Everybody knows that I had a good time.
Everybody knows that, but it’s been a challenging.
You’ve always been there for me.
You know I got you’ve, always been there, Brandon’s been there.
I’ve always been there for me, this is that you are the show here.
This is yourself when I started this whole thing.
You were there, you are the first guest like Brandon and all that – and I thank you.
You know I really I’m really blessed because in my lifetime I got to meet such a wonderful person.
Like yourself yeah.
I feel I feel really blessed.
Throughout the years we’ve become more than that anything would become more French.
You know, so that’s important to me relationship it’s what it’s about.
You know I’m glad that we met in that in my life and you’ve shown me a lot of stuff throughout my life that we’ve had together.
You know a lot so dealers I mean I’m over the opening to learning.
I’ve learned a lot from Becky how she looks at things what she does and how good her training is.
Please dealers get her there and soon you’ll be seeing Becky in digital retailing.
What do you talk about that Becky topic and I’m? I love everything.
Innovator thinking outside the box get outside the box wherever there’s no more and try and with the billets right with the warranty, so warranties online and they’re broken you that’s the next step.
Do they be testing use it? It’s there, it’s available worst thing that can happen.
You can sell ten warranty service contracts right channels.
What would that help? You retention? Oh try it that you got nothing we’ll try it.
I know that I’m gon na try everything.
Somebody tells me that has potential of making money, because then I put my spin on it and I made sure that I make money and if I don’t, I kill it and I move something else.
Well, you know what I can if you do anything if you’re, not what I mean, if you do anything at all, if you think through this, get your service contracts and get that business back in front of your customers, then third time you’ve got to be able To have an after market strategy that you put in place, that’s automated period, I don’t you know, I got ta, tell you if you’re not doing, thank god.
Oh my god, going to Florida.