ENTREPRENEURSHIPLANDMINES

HOW TO AVOID THEM Page

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Inside: Social Media Strategy / 06Structure Profitable Car Deals / 10Dropping Loonie and US Car Sales / 12

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DealerNews

T H E O F F I C I A L M A G A Z I N E O F O R E G O N I A D A

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PAIDDALLAS, TEXASPermit No. 2079

A P R I L 2 0 1 6

REPRESENTING ALL AUTO, TRUCK, TRAILER, RV AND POWER SPORT DEALERS OF OREGON

OIADA CON T INUING

EDUCAT ION P ROGR A M

Read & Respond

and CertifyPage 12

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InsideSOCIAL MEDIA STRATEGYPlan to Succeed | PAGE 06

ENTREPRENEURSHIP LANDMINESHow to Avoid Them | PAGE 08

THREE STEPS TO STRUCTURE PROFITABLE CAR DEALSMake the Right Deal | PAGE 10

DROPPING LOONIE AND U.S. CAR SALESU.S. Dealers Driving Canadian Exports | PAGE 12

APRIL QUIZContinuing Education | PAGE 12

WHY YOUR GRANDFATHER WOULD OUTSELL TODAY’S SALESPERSONKey Advantages | PAGE 14

What’s New2016 NATIONAL TIRE SAFETY WEEK MAY 29-JUNE 4Tire Safety Week, an initiative of the Rubber Manufacturers Association’s “Be Tire Smart – Play Your PART” program, will be celebrated May 29-June 4. Dealers can do their part in educating motorists about proper tire care and maintenance. To help, RMA provides free “Be Tire Smart” brochures and other materials, which can be ordered at www.betiresmart.org.

Advertiser’s Index Autotrader ..........................................................................................................7Brasher’s Northwest/Portland .......................................................BCDAA Northwest/Seattle ........................................................................IFCGM Financial .....................................................................................................5Lobel Financial Corporation .................................................................3Manheim.com ..............................................................................................11NextGear Capital .......................................................................................10TrueCar ................................................................................................................9VAuto ..................................................................................................................IBC

OfficeOregon Independent Auto Dealers Association 1475 Capitol St. NE Salem, OR 97301800-447-0302

NIADA HeadquartersNational Independent Automobile Dealers Associationwww.niada.comwww.niada.tv2521 Brown Blvd.Arlington, TX 76006-5203 phone (817) 640-3838For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com.OIADA Dealer News is published 12 times per year by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203; phone 817-640-3838. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 6006-5203. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of OIADA Insider or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of NIADA , does not constitute an endorsement of the products or services featured. Copyright © 2016 by NIADA Services, Inc.Inc. All rights reserved.STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.comEDITORS Jacinda Timmerman • jacinda@niada.comAndy Friedlander • andy@niada.comMAGAZINE LAYOUT & GRAPHIC ARTISTChantae Arrington • chantae@niada.com ART DIRECTOR Christy Haynes • christy@niada.comPRINTING Nieman Printing

ACCOUNTING SERVICES Delap, CPAAdam PuckettLake Oswego, OR 97035503-697-4118ADVERTISINGAffiliated Media LLCAaron Jarvis503-683-2574Carsforsale.comAaron Oestretch605-306-3302AutoTrader.comEd Merrick 503-747-9162Cars.comJames Lynch312-601-5052UsedCars.com by DealixTamara Garris847-397-1700AUTO SERVICES & ACCESSORIESAuto Marketing SpecialistGary Palaniuk503-519-7725Auto DetailerShow Room NewMike BartheP O Box 822073Vancouver, WA 98682360-882-8162Northwest Auto AccessoriesCraig Lessard503-288-5700SHOWROOM/BUSINESS JANITORIALShow Room NewMike Barthe 360-882-8162

Associate MembersCommercial CleaningJaniKingMorgan Thomas541-868-8080 PRIVATE AUCTIONSBrasher’s Northwest Auto AuctionMark Melton541-689-3901Brasher’s Portland Auto AuctionJerry Hinton503-492-9200Crosspoint NW Dealer AuctionBrian Hardy503-594-2800Manheim Portland Auto AuctionRay Priest503-286-3000OUT-OF-STATE AUCTIONSADESA Seattle Auto AuctionJason Arcaro253-735-1600 x 213DAA NorthwestMitzi Vanvoorhis509-244-4500DAA SeattleDave BlakeAuburn, WA 98002253-737-2200Manheim Seattle Auto AuctionRay Priest206-762-1600

PUBLIC AUCTIONS & AUCTIONEERSCommercial Industrial AuctioneersRay Beal503-760-0499Insurance Auto Auctions, Inc.Ryan Hall503-253-1500

Petersen Auction Group of OregonCurt Davis541-689-6824Rick Leathers AuctioneersRick Leathers503-668-5326Woodburn Auto AuctionSteve Morin503-981-8185DEALER SOFTWAREFrazer ComputingMichael Frazer888-963-5369FINANCINGCredit AcceptanceJohn Bragg360-980-2214Credit ConceptsJason Moon541-342-8545JP Morgan Chase Auto FinanceJeff DeGarmo503-201-4370Lobel FinancialTom McConkey503-653-8000

Nationwide InsuranceMark Tischer503-339-4165Oregon Auto FinanceGary Veum541-868-0472Oregon Community Credit UnionRich Black541-681-6311PacWest LLCJohn Keifer341-868-2595Reliable Credit AssociationDavid Marx503-462-3022Smartway Auto AdvisorsSheldon Harris503-795-7700The Equitable Finance Co.Brandon Fox 503-808-7939United FinanceTodd May503-238-6488FLOORPLAN FINANCINGLobel FinancialTom McConkey503-653-8000Floorplan XpressJosh Chandler503-621-9260NextGearRobert Torbet503-358-3911INSURANCE & BONDINGHecht & Hecht Insurance AgencyEvelyn Hecht503-542-1131

PRESIDENT Gary SargentSargent’s Motor Sport

EXECUTIVE VICE PRESIDENTTommy Wilson JrTommy Wilson Motors

Board of Directors1st VICE PRESIDENTSiamak LoftiSiamak’s Car Company

TREASURERGary BrooksBrooks Motors

SECRETARY Jim WeaverCredit Union Auto Broker

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KMI Agency, Inc.Kelly Martin503-625-2615Shepard & Shepard Business SolutionsTodd Shepard509-396-0488The Summit Group of OregonJohn Petrie503-581-2825LEASINGOregon Roads, Inc.Joseph McKinney541-683-2277SERVICE CONTRACTSA.U.L./D.P.C.Jim Bangert 360-834-3333Automotive Business DevelopersShannon Meany541-944-9186Auto Services CompanySusan Williams800-442-7116DPC, Inc.Jacob Bangert360-834-3333Protective Life InsuranceDylan Doran818-836-1455TRAININGOIADA/NIADA CertifiedPauline Sill503-362-6839

ADESA has signed a definitive agreement to purchase the Brasher family’s eight auto auctions.

ADESA parent company KAR Auction Services said the purchase would be a $283 million (approximately) cash deal. The transaction must meet customary conditions, including the expiration or termination of the Hart-Scott-Rodino waiting period, before it closes.

KAR expects the deal to close in the first quarter. It plans to fund the purchase with available cash and proceeds from its revolving credit facility. The purchase can

give ADESA a stronger foothold in the West, the company said.

Brasher’s locations include Brasher’s Salt Lake, Brasher’s Sacramento, Brasher’s Portland, Brasher’s Boise, Brasher’s San Jose, Brasher’s Northwest, Brasher’s Reno and Brasher’s Fresno.

KAR said key corporate and local auction personnel for Brasher’s will maintain leadership roles throughout the Brasher auctions.

“The Brasher family is one of the most highly respected families in our industry. It is a tremendous honor that they have agreed to become part of ADESA,” Jim Hallett, KAR chairman of the board and chief executive officer, said in a news release.

“Brasher’s is a premier auto auction with a strong management team that shares our passion for the auction business and desire to provide the best customer service possible. I am also pleased that the members of the Brasher family and other leaders in their business have agreed to join our

ADESA to Buy Brasher’s 8 Auctions

management team,” he said.John Brasher added, “For

67 years, Brasher’s has been synonymous with outstanding auto auctions. We take that commitment to our employees and our customers personally, and do not approach this sale of our auctions lightly. We fully believe that our auctions will reach even greater levels of excellence as part of ADESA.”

Stephane St-Hilaire, CEO and president of ADESA, said, “Brasher’s is a leader among independent auctions with a strong mix of commercial and dealer consignment customers. Along with increasing ADESA’s footprint in three new states, the addition of Brasher’s enhances ADESA’s physical and online buyer bases.

“It also increases our ancillary services, while enabling our sister company, AFC, to develop a presence at Brasher’s eight auction locations. As part of the KAR group of companies, we plan to offer Brasher’s customers the complete suite of KAR’s end-to-end vehicle remarketing services.”

GIVES ADESA STRONGER FOOTHOLD IN WEST BY JOE OVERBY, AUTO REMARKETING EDITOR

AUC T ION NE WS

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Common Challenges Solved with Targeted Social Media StrategyPLAN TO SUCCEEDBY KATHI KRUSE, FOUNDER/CEO, KRUSE CONTROL INC.

SOCIAL MEDIA

What are your sales and revenue goals? Setting goals greatly increases the chance you’ll achieve them... but many businesses jump into social media marketing without even a thought as to what their goals are. Some bring their goals to the table with wide-eyed

enthusiasm but get attached to problematic tactics they think will solve their challenges. When things don’t work, they give up.

With a solid plan and well-defined goals, a targeted social media strategy can be applied and, suddenly, things begin to fall into place. Without an authoritative plan, valuable assets are wasted on things that will not solve challenges, and things that do matter get overlooked.

I had two such examples recently that illustrate this need for well-defined goals and the ideal social media strategy to solve challenges:

1. The client’s challenge was declining traffic, leads and sales. Their plan was to attract buyers from a new market using social media. There was no data to back up this plan and no details on how they were going to get there.

After further investigation, we helped them discover a deeper, broader strategy that included content creation and SEO, which solved their challenge much more effectively.

2. The client’s challenge was entering a new market without any brand awareness. They had very little budget (a common misperception of social is that it’s free). The plan was to hire a part-time person to publish messages on social media to “get the word out.”

After data gathering and further investigation, we proposed a more ideal strategy beginning with a solid marketing plan and website update. As budget allowed, they would then roll out social media marketing to support their goals.

Let’s face it, social media and all online marketing and advertising is getting more

complicated. Before you jump in, or if you’ve already jumped, outline the challenges you’re facing with your business, including your organizational structure.

If you don’t have the expertise in-house to determine your goals and/or the design and execution of your social media strategy, a qualified expert can help you get going on the right course of action.

SOCIAL MEDIA STRATEGY... FOR THE WIN!

The following common business challenges can be solved with a precise social media strategy designed to achieve that goal.

Challenge: Low Website Traffic

Nearly every buyer starts his or her purchase journey online. Your website is the virtual storefront of your dealership and low website traffic means fewer customers and decreased revenue.

Social media strategy: With a goal of increasing traffic to your site, focus your strategy on publishing links that go directly to your website. Promoting those links to your helpful content using Facebook ads will position your business as a trusted resource and, with a little savvy, increase leads and sales.

Challenge: Weak Brand Awareness

Social media is ideal for reaching a broad audience. However, what you post creates an impression in users’ minds.

Social media strategy: Identify what makes your business unique – what differentiates you from your competition. Create and publish content that illustrates why people buy from you instead of your competitors.

Stay away from promotional messages at this stage. Pretend you’re meeting these people in person for the first time. You wouldn’t greet them with a sales pitch. Focus on meaningful content that personifies why customers choose you.

Challenge: Declining Customer Retention

Social media is excellent for staying in touch with current customers. It costs five to eight times more to acquire a new customer than it does to keep an existing one.

Social media strategy: Treat your social channels as

communities where like-minded people come to hang out. Appoint a “community manager” who engages and supports your community by listening and being responsive. A good social relationship with your customers improves perceptions and offline relationships.

Challenge: Poor Online Reputation

Don’t give online ratings sites the power to control your business. If what’s being said about you doesn’t mirror the true customer experience delivered, take action now to turn things around.

Social media strategy: Implement an internal process to capture your happy, loyal customers’ opinions. Create a review funnel. Focus on email surveys that ask a net promoter score question: “On a scale of 1 to 10, how likely are you to recommend us to your friends and family?”

If they answer 1-6, send them to a landing page asking to get in touch to resolve the issue. If they answer 7-10, ask for their feedback and send them to a landing page with links to your profiles.

Challenge: Slow SalesSocial advertising, especially

Facebook ads, is one of the most under-utilized options out there right now. By publishing relevant, holistic content you lay the groundwork for further engagement. The next natural step is to target would-be buyers with offers.

Social media strategy: Facebook ads are ideal for laser targeting your ideal customers. Create landing pages with lead forms and design ads that compel buyers to click.

Action time: Today’s challenges need to be met with today’s solutions. Give your dealership the fighting chance it deserves by setting strong foundational strategies in place to grow your business.

Outline your challenges. Make your plan, define your business goals and employ proven social media strategies to solve those challenges.

In 2016, the winners will be those who have leveraged the social web to their advantage. I want you to be one of the winners!

Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc. Kruse Control coaches, trains & delivers webinars focused on integrating social media and online reputation management into dealership operations.

TODAY’S CHALLENGES NEED TO BE MET WITH TODAY’S SOLUTIONS. GIVE YOUR DEALERSHIP THE FIGHTING CHANCE IT DESERVES BY SETTING STRONG FOUNDATIONAL STRATEGIES IN PLACE TO GROW YOUR BUSINESS.

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Entrepreneurship Landmines

M ANAGEMEN T M AT T ERS

Throughout my years in the automotive industry, I’ve watched dealer after dealer fall prey to “tunnel vision.” It’s easy to get so caught up in the day to day process of selling cars you forget you’re running a business.

I’ve also seen a handful of dealers I know would succeed regardless of the industry. They could sell hamburgers, furniture or sunglasses. It doesn’t matter because they are simply stellar businesspeople and know how to run a company.

If you own an independent dealership, you’re more than a sales organization. You’re an entrepreneur first and foremost, and the most successful dealers remember that. Let’s explore some common mistakes dealers make as they spread their entrepreneurial wings, and what you can do to avoid them.

Landmine No. 1: You don’t want to accept the industry has changed.

I’m referring chiefly to compliance here, but you could also apply this concept to many other areas. Over the past decade, we’ve witnessed regulatory burdens grow heavier and heavier. Even so, some dealers want to continue the status quo, citing their small size as a reason to stay under the radar.

Unfortunately, that strategy won’t work going forward. Recent cases spotlight the exposure even small independent dealerships have with the FTC, CFPB and other regulators, not to mention lawsuit risk. Now is the time to invest in serious compliance education and to implement what you learn.

Landmine No. 2: You don’t use the best technology, processes or systems.

As a one-man show, you might be able to (temporarily) get away with running a business inefficiently. Once a full team is hired, however,

those days will be long gone. You need repeatable, scalable processes and systems to achieve sustainable growth.

If you can’t take more than a day or two off for fear chaos will ensue, your processes should be revamped. You should be working on your business (i.e., planning for the future) rather than in your business (i.e., in reactive mode every day).

Be sure to support your infrastructure with top of the line technology, and take advantage of training to maximize the benefits of software or third party services. Most dealers think they are on track with these criteria, but an honest assessment will likely reveal at least a few areas to fine tune.

Landmine No. 3: You don’t have a clear picture of where the company is headed.

Before you can empower your team, you must first develop the vision yourself. What objectives do you want to accomplish over the next 12 months?

I’m not just talking about sales goals. Write down your concrete, actionable and measurable objectives for this year, and review it multiple times. Write out a clear path to get there. Hint: If this plan doesn’t involve delegation, try again!

Landmine No. 4: You have not communicated corporate goals to your staff where they can “own” the vision.

If you plan to sell your company one day or pass it down to family, this point is crucial. I see two types of businesses in our industry: 1) systems-driven and 2) personality-driven. A systems-driven business reflects the solid infrastructure described in No. 2. It’s sustainable, repeatable and – most important – can exist apart from the owner.

On the other hand, a personality-driven dealership relies heavily on your day to day involvement. Delegation is rare, and few employees – not even department heads – are encouraged to take ownership of their team’s goals. This

sort of organization consists mostly of order takers who are not personally invested in any particular outcome. I believe the strongest business model is built on a clear hierarchy with department leaders empowered to fulfill the company’s vision.

Landmine No. 5: You have not hired the right team for long term success.

If you cringe at the thought of delegation, perhaps you need to hire different people. You should trust the competence of your department heads serving as your inner circle. If you don’t, that’s a red flag.

Create clear job descriptions, along with hiring processes and policies, that will make your business appealing to an outside buyer or understandable to family members who take over when you retire. Whether you execute this step could mean the difference between running a “lifestyle business” or one with a profitable exit strategy.

Landmine No. 6: You avoid paperwork like the plague.

I’m not saying you should get bogged down in minutiae. However, if you’re committed to building a solid system others can follow, it requires documentation. There’s no way around it.

Dealerships can be overly sales-focused, which I completely relate to as a salesperson myself. But front-end sales are not the end of the story. Ultimately, sustainable profits are what matter, and that’s only possible when you’ve done some heavy lifting to

HOW TO AVOID THEM

BY PETER ORD

implement a bulletproof infrastructure on the back end.

Landmine No. 7: You don’t understand the power of first impressions.

Some dealers believe their showroom should look flawless and pristine. Fewer believe the same about their sales/F&I offices. Even fewer believe it about their staff. And still fewer believe it about their websites. In reality, the appearance of all these things matters.

Today’s buying cycle usually includes weeks of research before the customer ever steps onto the showroom floor. Much of that research is conducted on a dealer’s website. Pay attention to the details, such as errors, broken links, search engine optimization and consistent content. Better yet, walk through the site as a customer (including submitting a lead with the online form), and see what areas need improvement.

As an entrepreneur, you must be intentional in building your dealership’s brand. Every interaction a customer has with your website, salespeople, F&I manager or receptionist ultimately creates the brand story he or she remembers.

Support your team with a clear vision, and give them the tools to carry it out. A few years from now, when you open up a purchase offer letter that could fund your retirement, you’ll be glad you took the time.

Peter Ord is director of sales operations at DealerSocket. He has installed, implemented, and managed the DealerSocket system at more than 2,500 dealerships in his 13 years with the company.

BEFORE YOU CAN EMPOWER YOUR TEAM, YOU MUST FIRST DEVELOP THE VISION YOURSELF.

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Three Steps to Structure Profitable Car Deals

Whether you are concerned about collecting or about meeting sales goals, there are good reasons to make sure the deals you do make are well-structured. Here are three tips to make that happen.

Choose the right term and payment.A sound deal starts with the term. Your

deal has to make sense. A low ACV unit on a long term just because we got a good down payment? That simply doesn’t work. Not because the car won’t run the note, but because the customer won’t run the note.

Fewer than half the deals we put on the books in the BHPH industry go to term. Almost a third will charge off, and another 20 percent will pay off early either through our effective repeat programs or from our competition.

Term should be dictated by two factors: What the customer can afford (based on their verified net income) and your appetite for exposure. If the customer can afford a $300 monthly payment and you are only comfortable with a 30 month term, then that customer’s total contract can only be $9,000. So, you can sell that customer any vehicle on your lot as long as they leave owing you no more than $9,000 in principal and interest.

Obviously, because payment is an integral piece of establishing term, it’s also an important factor in a sound deal structure. What we are looking for here is the same as term. The payment date has to be logical. Payment should be due when the customer gets paid and on their next available paycheck, barring any deferred downs.

Allowing a BHPH customer to go 30 days without a car payment without a deferred down is asking for trouble. We know our customers have had issues with budgeting money in the past, why not help them budget better by starting their payment right away? And, to help them even more, have their payment scheduled for the day they get paid. It’s an easy reminder: get paid, make payment.

Select the right rate and add-ons.Interest rate is the next aspect of deal

structure. Now, before I get hate mail, I’m not suggesting you shouldn’t profit from your state’s usury limits. But, I am saying you may need to adjust this expectation depending on the term and payment deal structure. Yes, interest income is our reward for the risk. However, if the overall deal structure doesn’t make sense, your ability to collect your reward will greatly diminish.

Back end or add-on products are similar to interest in the overall scheme of deal structure. While they are great profit generators, their addition to a deal can affect payment and term, not to mention cash flow.

It’s a balancing act. You have to decide how you want to divide the money you collect from the customer. Will it go to principal and interest in order to reduce your risk and increase your reward? Or will it go to recoup cost in a product?

Use common sense to help the client pick the right vehicle.

You can’t forget the customer in the deal structure. Yes, the term, payment, rate and additions are all critical to the hard business aspects of the deal, but you need to keep an eye on what they are buying.

Let me give you an example of a deal I came across during a consulting visit. A single mother with four children, two of whom required car seats, was allowed to purchase a Chevrolet Camaro. When I asked the dealer about it, he responded the customer could afford the payment based on his criteria and the term was within his criteria.

Okay. Yes, both of those do make sense, but common sense should tell us the deal doesn’t make sense. Sure enough, the owner wanted to be traded out of the vehicle within the first year because it wasn’t big enough.

Moral to the story? The overall deal structure has to make sense not only for you the dealer but for the customer as well.

Bringing it all together: Make the right deal.

So, let’s review three main steps you need to take to create the most profitable deal structure.

1. Term should be dictated by your exposure comfort level.

2. Payment needs to fit the customer’s financial ability. Interest and add-ons need not dictate the term and payment. Instead, term and payment should impact how you set up interest and add-ons.

3. Not only should the vehicle fit the customer’s financial needs, but also their physical and lifestyle needs.

Brent Carmichael is an executive conference moderator for NCM. Prior to joining NCM, Brent worked 17-plus years in subprime finance and collections, the last 11 of which were in Buy Here-Pay Here. This article originally appeared on NCM’s Up to Speed blog (http://blog.ncminstitute.com) and is reprinted with permission.

MAKE THE RIGHT DEAL BY BRENT CARMICHAEL

BHPH PERSPECT IVE

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COMPLETE THIS TEST AND CERTIFY BELOW THAT YOU HAVE READ THE ARTICLES FOR APRIL 2016.

“ENTREPRENEURSHIP LANDMINES” True/False: If you can’t take more than a day or two off for fear chaos will ensue, your processes should be revamped.

True/False: It’s not important to have concrete, actionable and measurable objectives.

“THREE STEPS TO STRUCTURE PROFITABLE CAR DEALS”Which of the following should you do to structure profitable car deals?a) Choose the right term and payment.b) Select the right rate and add-ons.c) Use common sense to help the client pick the right vehicle.d) All of the above.

True/False: The term of your deal should be dictated by two factors: What the customer can afford (based on their verified net income) and your appetite for exposure.

“WHY YOUR GRANDFATHER WOULD OUTSELL TODAY’S SALESPERSON”Which of the following is NOT a key factor discussed in the article that gives the “old guard” an advantage?a) Preparation and Sales Skills b) Drive for Successc) Dedication and Commitment d) Focus on People

True/False: The World War II generation was focused upon themselves.

True/False: With the work ethic and character traits of someone from the World War II generation and the technology of today, you can have the best of both worlds.

OIADA CONT INUING EDUCAT ION PROGR AM

INDUST RY WATCH

A lower Canadian dollar has been bad for some industries, and boosted others. One division of the Canadian automotive industry that has grown substantially over the past year is used vehicle exports to the U.S.

In fact, according to DesRosiers Automotive Consultants, the number of used vehicles exported to the U.S. from Canada through November of last year grew to 200,000. This is the highest export level from Canada to the U.S. for pre-owned vehicles since 2002.

Interestingly, although this number is being driven by American car dealers looking to secure cheap used vehicles due to the current exchange rate, AutoTrader.ca also saw an uptick in U.S. traffic on its site. From Nov. 1 to Dec. 31 of 2015, U.S. traffic to the site increased by 27.7 percent year-over-year, AutoTrader.ca’s Paul Williams reported.

AutoTrader.ca’s director of marketing Ian MacDonald said, “A weak Loonie makes it less expensive for Canadian manufacturers and exporters to sell their goods south of the border. More people looking to purchase Canadian goods increases demand. A larger pool of consumers means dealerships and private sellers have seen significantly higher sales year over year.”

And Canadian auto auctions have been selling south, as well. In talking with ALG Canada regional director Geoff Helby this past fall, he likened export activity at ADESA’s Canadian auctions to a “U.S. dealer invasion.”

In fact, according to ALG data, exports were already exploding last summer. July 2015 marked the highest volume month at the time since January 2014 for

U.S. dealer purchases. Helby also reported a year-over-year U.S. dealer purchase volume increase of a whopping 114 percent for July 2015.

Tom Kontos, ADESA Analytical Services’ chief economist, touched on this trend this past fall as well, noting at the time it was definitely a trend to watch and was already having an impact on used pricing at auction.

“I did also want to draw attention to the fact that U.S. bidders are contributing to the strength of the market, too,” said Kontos. “You have got tighter supply, and dealers coming in from across the border from the U.S. and bidding aggressively for cars, because of the strength of the U.S. dollar. The U.S. buyers are contributing to the strength of prices in the Canadian wholesale market.”

So, will the export trend last, grow or diminish with time? Josh Bailey, Canadian Black Book vice president and editorial director, said it’s truly cyclical, and the trend goes both ways depending on the two currencies.

Bailey said in October, “From what we hear from our auction surveyors, there are still many U.S. buyers in the Canadian market making purchases, whether online or in the lanes, mostly motivated by the foreign exchange rate.

“Naturally this creates some tension, but no doubt when Canadians were in the U.S. buying a few years ago, it was not any different.”

U.S. DEALERS DRIVING CANADIAN EXPORTS BY SARAH RUBENOFF, AUTO REMARKETING CANADA EDITOR

Dropping Loonie Pushing Used Vehicle Exports to U.S.

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Oregon Independent Auto Dealers AssociationOIADA ~ Oregon Independent Auto Dealers Association

Your only nationally recognized association since 1948. OIADA, here to help, support, educate and promote quality dealers in Oregon.

Here are the great benefits of OIADA membership: • Oregon Dealer News is delivered to our dealers monthly, filled with quality up to date

business articles.• Included in each Dealer News Magazine is 30 minutes towards continued education,

free to OIADA members, which now means returning eight answer sheets a year. This is a savings of $75 annually.

• OIADA Auction Punch Card: Our valued auction houses in Oregon, Washington and California are offering $50 savings on your buy and sell fees, a value of $1,100.

• OIADA offers members discounts on all meetings, educational programs and conventions, with an annual savings of over $200.

• OIADA members receive a discount on most forms, a savings of up to $100 or more annually.

• Quarterly regional dinner meetings, an outreach to bring programs, education and conversation to all areas within Oregon.

• Annual convention will host a variety of programs including eight or more hours of continued education. Quality Dealer of the Year Awards and Banquet. At a savings of $100 for OIADA members.

• Opportunities for OIADA members to be awarded Oregon’s Quality Dealer of the Year and to compete for the National Quality Dealer of the Year at our national convention.

• National education opportunities, becoming a Certified Master Dealer and more. • National access to Dealers 20 Groups .• OIADA has on contract a lobbyist to bring forth interests and to protect our dealers at

the state level. • OIADA hosts a required certified 8-hour Pre-License Class. Upon completion dealers

will receive the DMV required 8-hour certificate. • Title and registration classes, savings of $35 for OIADA members.• Help and support with your issues is just a phone call away. • Automatic membership with NIADA and the NIADA Used Car Dealer Magazine.• Access to NIADA’s annual convention.• Opportunities for scholarships, both state and national.• NIADA offers OIADA members a wide variety of discounts to members, from education

to everyday business expenses.

Contact OIADA at 503-362-6839 to start your enrollment for all these great opportunities as a member of OIADA.

Annual Savings$1100 Auction Punch Card$ 100 Forms$ 75 Education$ 100 OIADA Convention$ 50 Driven to Learn & Regional Meetings $ 1425 Bottom Line Savings

$325 Cost of Membership ~ OIADA helping you succeed.

Don’t let yourself run out of the forms you need to do business every day. OIADA has four ways for you to get forms:

Don’t be caught without a Secure Odometer Form or Secure Power of Attorney. These forms are DMV forms and each has a registered number assigned to the dealer who purchased them, so don’t lend yours out and do not borrow from your neighboring dealer.

When you purchase these forms, it’s a good idea to pull them out of the packet and slip a reminder near the bottom to call OIADA and order more. You can even add the phone number (503-362-6839) on the note.

Did you know that our members get a discount on most state forms? OIADA members save an average of $100 or more every year.

OIADA Forms StoreYOU CAN EASILY ATTAIN FORMS NEEDED FOR EVERYDAY BUSINESS

You can order forms any time of the day online at OIADA.com. All you need is an email address.1.You can stop by one of three locations within the Oregon auction houses during auction day.2.You can pick up forms at the OIADA office, located at 1475 Capitol Street NE in Salem.

3.You can call the OIADA Office Monday-Friday. We will ship your order that day. In most cases, it will be delivered to you overnight by UPS.

4.

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O I A D A D E A L E R N E W S | A P R I L 2 0 1 6 | W W W. O I A D A . C O M14

Why Your Grandfather Would Outsell Today’s Salesperson

SAL ES M AT T ERS

With the development of the Internet, social media, and the “new” relationship and solution selling techniques, there seems to be a belief out there that today’s salespeople are superior to those of the past. As you can probably gather from the title, I don’t necessarily agree. Here’s why.

THREE KEY FACTORS THAT GIVE THE OLD GUARD AN ADVANTAGE OVER THE NEW GUARD

Preparation and Sales SkillsWhen my dad went for

training at I.B.M. in the early 60s, it was primarily sales training. Yes, you learned the product too, but they made sure you knew everything about selling: getting through the gatekeeper to the decision maker, how to present your product, overcoming objections, closing, follow up and how to build solid, long-term relationships.

Everything was scripted and you role played until you could recite everything verbatim if someone woke you from a sound sleep at 3 a.m. They also covered the important basics such as how to dress, the right way to shake hands and to pop a breath mint before a sales call while avoiding garlic during the workweek.

These days I am amazed by the lack of sales skills I run into on a daily basis. If I walk into almost any sales meeting and blurt out objections, stalls and other prospect obstacles they have been running into every day for years, salespeople stall, stammer, and trip over their tongues as if it’s the first time they’re hearing what I’m throwing at them.

I even give people objections during the interview just to see what their best, current

response is to something simple like, “I can get it cheaper down the street.” If they’ve been in sales for any length of time, they’d better have a good, quick response to that one.

Add to that the fact many salespeople these days seem to be much more lax with dress, manners and etiquette in general. Knowing how to sell, having a good handshake and other “basics” should be common sense, but that common sense, which was common decades ago, is more the exception than the rule in today’s selling world.

Dedication and Commitment

When it comes to dedication and commitment, you’re not going to beat the World War II generation. They are also tough to beat when it comes to living up to promises and their word. When you hired someone from that generation they understood they had an obligation to the company, their boss and their family for whom they needed to provide.

One of the biggest issues today is accountability. Decades ago people were responsible enough to hold themselves accountable.

My dad tracked his calls and kept a call sheet, but these were success tools as opposed to something his manager used to make sure he was doing what he was supposed to be doing. His generation would never consider fudging a call sheet or hiding out in a coffee shop or movie theatre when they were supposed to be out making calls. Yes, there were a few of those people back then but not many, and they weren’t employed with that company for very long.

Another major issue is motivation – simply putting in an honest day’s work for an honest day’s pay, along with taking care of the company, the customers and one’s family, was all the motivation one needed back then. It didn’t matter how you felt on a given day. The question was about the obligation and commitment you signed up for.

That generation also brought character traits and a work ethic to the job we rarely see these days. All of this comes

back to the dedication and commitment they felt toward others knowing that if you’re taking a paycheck from someone, you owe them your best.

Focus on PeopleThe World War II

generation would never be accused of being the “me” generation. My dad was the number one sales rep in New England for over 30 years for I.B.M. and Diebold Banking Equipment because, like most people of his generation, his objective was to help and serve other people. Decades ago I think there was much more of a focus on other people and more of a “the-customer-is-always-right” mentality. While many talk about past salespeople beating people up and having one more close than they had objection, I find the best of the best have always sold the right way, with a focus on the other person.

And, by the way, there is no “new” relationship selling. Even 60 years ago, the best have always focused on the relationship and what’s best for the other person, thinking of themselves, their product and their company second.

All of the above said, are there hard workers out there today who are committed? Yes. Also, social media, technology and new sales ideas are tremendous tools

to warm up cold calls, pinpoint prospect pains and continue to connect and communicate effectively with prospects and customers.

So although I’ll take the work ethic and character traits of someone from the World War II generation – using a car, pay phones, and keeping track of prospects on index cards every day of the week and twice on Sunday – imagine the best of both worlds. Start with someone hungry, with a blue-collar mentality and thick skin, who isn’t afraid to show up early, leave late and pound the pavement making more calls than anyone else.

Combine that with someone who cares about people, studies their craft and knows their product. Someone who practices, drills and rehearses their presentation, answers to objections, closes, and anything and everything they’re likely to run into during the day.

Finally, add knowledge of social media and technology, using it in a supporting role, in the background, and not as the foundation for their sales efforts. Yes, those people are out there. No, they are not easy to find. Time to get to work.

John Chapin is a sales and motivational speaker and trainer. He has over 27 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For more information, visit www.completeselling.com or email johnchapin@completeselling.com.

KEY ADVANTAGES BY JOHN CHAPIN

EVEN 60 YEARS AGO, THE BEST HAVE ALWAYS FOCUSED ON THE RELATIONSHIP AND WHAT’S BEST FOR THE OTHER PERSON, THINKING OF THEMSELVES, THEIR PRODUCT AND THEIR COMPANY SECOND.