Volume 6 Issue 2

1

in this

2 MISSION STATEMENTBoard of Directors

4 Drive OnShayne Wilson, President

5 Advertiser’s Guide

6 Used Car Traffic andYour WebsiteBy Lee Culver

8 The Right Digital AdvertisingStrategyBy Susan Burke, Sr. ProductMarketing Manager ADPDealer Services

10 Dealers Utilize Online SalesChannels to ChallengingEconomyBy Thomas Webb, ChiefEconomist, Manheim Consulting

12 Highlights of the 2009 AJCInternational Auto Show

16 Are You at $2,000 PRU?By Brian Williams, DealershipDevelopment Manager,American Financial

18 Cover Your AssetsBy Scott Dreisbach, Vice Presidentof Valuinsight, Inc.

20 Identity Theft and InformationSecurity - A PartnershipBy Wayne A. Fortier, CPA,Dixon Hughes

22 AutoCount

24 General Motors Wins TwoGAAMA Peach Awards atAtlanta Auto ShowBy Ryan R Rees, Vice President,GAAMA

26 MAADA News: Stephen Jarrell,Jr. Joins the Virtual AcademyStaff as Production Manager

27 Ready. Set. March for Babies!March of Dimes Fights forHealthy Babies

28 Academy Schedule

ON THE MOVE is published four times annually by the Metro Atlanta Automobile Dealers Association.

Any reproduction in whole or in part of the contents of this publication is prohibited without prior consent of the Metro Atlanta Automobile Dealers Association.

The appearance of advertisers does not constitute an endorsement of the products or services by the Metro Atlanta Automobile Dealers Association.

Dave Tribble, Editor-in-Chiefdtribble@maada.com

Dawn Palzewicz, Art Directordpalz@earthlink.net

DISTRIBUTION:Janet Brown and Pam Schrodel

CONTRIBUTING WRITERS:Susan Burke, Lee Culver, ScottDreisbach,Wayne A. Fortier,Ryan R Rees, Thomas Webb, andBrian Williams.

PHOTOGRAPHY:Dave S. Canon, Randy Nelson,Richard Stegall, and Shayne Wilson

MAADA440 Interstate North ParkwayAtlanta, GA 30339

770-916-1741www.maada.com

issue

ON THE MOVE STAFF

Volume 6 Issue 2

Board of Directors

JIM ELLIS DON JACKSON CLAY NALLEY

BO SCOTT ALLAN VIGIL BILL VOYLES

Randy Morris,Chairman

2 www.maada.com

MISSION STATEMENTThe Metro Atlanta Automobile Dealers Association is made upof over 160 franchised new car and truck dealers from the 18county Metro Atlanta area. The association and its members striveto uphold the highest standards of honesty and integrity and con-tinuously work together to improve the car buying experience forMetro Atlanta consumers.

WALTER BRIDGES

STEVE RAYMAN

ERNEST HODGE,Immediate Past-Chairman

RICHARD PUGMIRE

In 2008, News/Talk 750 WSB gave the metro Atlanta dealercommunity powerful support during a three month advertisingcampaign designed to let consumers know that there has neverbeen a better time to buy a new vehicle. Hundreds of 60 secondspots ran during prime radio times. The value of this campaign wasin excess of $350,000.00.

WSB-AM has agreed on additional support this year, and theyhave brought together four more members of the Cox Radio GroupAtlanta to help the cause. During the month of April, WSB-AM, B98.5FM, KISS 104.1, 97.1 The River and 95.5 the Beat willall air a new spot encouraging area drivers not to miss out on this

great opportunity to buy a new vehicle. The spot also stresses thatthe cost of ownership has never been lower, warranties longer,and products and interest rates have never been better than rightnow.

With the combined value of five stations, Cox representatives esti-mate this campaign to be worth in excess of $500,000.00.

The Metro Atlanta Automobile Dealers Association thanks the CoxRadio Group Atlanta once more for its valuable support of the localfranchised new car and truck dealers.

The Cox Radio Group Atlanta Gives NewAdvertising Support to Metro Dealers!

4 www.maada.com

President’s Message

THE VIRTUAL ACADEMY CONTINUES TO GROW

It is truly amazing how The Virtual Academy has continued to grow in content and popularity during the past few months.

The Virtual Academy presently has over 320 different videos in its online library. Recent content additions include a seriesof workshops from Manheim: “Vehicle Remarketing 101,” “Buying Wholesale Vehicles,” and “Selling Wholesale Vehicles.”On the service side, The Hunter Engineering Company has released a large library of training videos for our use.

You can now also access over 170 archive videos from the Automotive News, as well as their daily update of industry news

There are currently a large number of dealerships throughout Georgia that are subscribers to our services, and we have receivedgreat response from these users.

We are also proud that the Georgia Automobile Dealers Association has recently endorsed the Virtual Academy.

“BEST TIME TO BUY” MEDIA CAMPAIGN

During the past four months, we joined together with local television and radio stations for a three stage media cam-paign to alert consumers that there has never been a better time to buy a new vehicle.

This campaign was conceived during the December meeting of MAADA’s Board of Directors. The board votedunanimously to use funds from the association’s reserve to let consumers know that area dealers are offeringunprecedented deals on new vehicles during today’s tough economic times.

While we purchased over 1500 prime spots for this campaign, there were more than 10,000 spots thatactually ran thanks to the generosity of metro Atlanta’s electronic media.

The strength of the paid television advertising schedule ran during local network news programming, pluson such popular shows as Today, Good Morning America, Good Day Atlanta, David Letterman and theTonight Show. The paid cable buy included spots on the Fox News Channel, CNN, Discovery, HeadlineNews, ESPN and the Speed Channel.

WE THANK OUR MANY GREAT MEDIA PARTNERS

After every Auto Show, we have a lot of media partners that we need to thank for their generoussupport. Here are some of these partners who gave us a big helping hand during our campaign:

•As always, WSB-TV (Channel 2) was a major media partner. They produced the 30minute Auto Show Preview show that ran on Saturday, March 7, and Saturday, March 14. It wasa great special that won its time slot in the ratings both weeks, reaching over 300,000 people.Channel 2 also included auto show information on their website.

•Comcast has also been a big supporter of the Auto Show, and 2009 was no exception.They helped keep the event in the public spotlight during a two week period, running thousandsof complimentary zone spots throughout many of their cable networks. Comcast also sent inSpongeBob Squarepants for appearances during the final weekend.

ShayneWilson,President

Continued on page 5.

Advertiser Page NumberTelephone URL

A d v e r t i s e r ’ s G u i d e

ON THE MOVE

AM 750 WSB 9404.897.7316 www.wsbradio.comAmerican Financial 17800.967.3633 www.afasinc.comComcast Inside Front Cover770.559.2262 www.CableAdvertisingWorks.comGeorgia Automobile Dealers Association 25770.432.1658 www.gada.comGuardian Products 5800.727.7222 www.gpcorp.comLicenseMatch 21770.916.1741Manheim Auctions 3800.856.6107 www.atlantaautoauction.comWSB-TV Back Cover404.897.7000 www.wsbtv.comThe Virtual Academy Inside Back Cover1.877.4.Academy www.maada.comValuinsight 19877.269.4491 www.valuinsight.com

• CW69 (WUPA-TV) also stepped up to the plate big time in2009. They aired their Friday “AutoScoop” show live from theshow floor at 6:00 p.m. on March 13, and then later taped theirSaturday show during the preview party. “AutoScoop” onceagain broadcasted live on Friday, March 20th at 10:00 a.m.

• Fox5 Atlanta (WAGA-TV) gave us a major on airpromotion on the week prior to our opening. I personallyviewed many of these promotional spots that ran during theirdaily programming. We also appreciate Good Day Atlanta forbroadcasting live from the show floor on Monday, March 16th.

• WGCL-TV (Channel 46) sent in multiple news crewsthroughout the run of the show, including Dagmar Midcap whobroadcasted her weather reports live from the show floor at 4:00p.m. and 6:00 p.m. on Friday, March 13th. Channel 46 also ranour banner advertising on their website.

• WXIA-TV (Channel 11) and WATL-TV (Channel 36)included the auto show banner ads on their websites, plus gaveus unsold inventory with our advertising campaign.

• I would like to thank all of our radio partners for keepingour event strong on the airwaves with plenty of promotional give-aways, station remotes and the donation of unsold inventory.

Continued from page 4 (President’s Message).

6 www.maada.com

To make matters worse, in today’stough economy dealers are cuttingexpenses to the bone and advertising isone of the first to go. So, what can amanager do to drive traffic to his lotwithout breaking the bank?.... Well, hecan ramp up the merchandising efforton the dealership web site.

Ever since Al Gore invented the internetexperts have predicted that it wouldone day change the way people shopfor cars. Apparently, ‘one day’ hasarrived. According to a JD Power UsedVehicle Shopping Study, 2007 was thefirst year internet use was greater thanall other methods for used vehicle shop-ping. Prior to that, visiting dealershipswas the primary way. The 2008AutoTrader / Northwood UniversityWalk-In Traffic Study shows that the

internet now accounts for 54% of allmedia driven traffic, surpassing newspa-per, radio, TV and direct mail com-bined. Interestingly, it also showed that61% of those who shopped the internetdid not contact the dealer before com-ing in.

This means your web site has the poten-tial to significantly impact floor traffic.Of course, just having a web site does-n’t guarantee results. There are over20,000 franchised dealer web sites andanother 40,000+ independent used carsites to choose from, so it’s important tomake yours appealing to internet shop-pers.

When customers shop online for a usedvehicle they consider reliability, risk,dealer reputation, location and price,

so your web site should address thoseconcerns. The following are some bestpractices for marketing and merchandis-ing used cars on you website:

• Quality photos – A few shortyears ago nine photos was the stan-dard. Today, however, nine is the bareminimum and 20 has become the norm.For high end or specialty vehicles it’snot unusual to have 35 to 40. The pic-tures should provide shoppers with avirtual walk-around. Since your vehiclesare essentially competing in an on-linebeauty contest you need to show themoff to their best advantage. Stage thepictures carefully with an attractivebackground and proper lighting. Whentaking close-ups of special features, besure to keep the camera still (a tripodhelps). The more detailed shots youprovide the more trust you engender.Some dealerships have taken picture-taking to another level by creating theirown photo studio.

• Great copy – Don’t just provide alaundry list of features. Differentiateyour listings by customizing the descrip-

In an effort to increase floor traffic dealerships spendthousands, in some cases tens of thousands each monthon used car advertising. The logic being the more wespend on advertising the more traffic we’ll get and themore traffic we get the more cars we’ll sell. Most of ushave learned from experience, however, that advertis-ing is a hit or miss proposition and spending large sumson traditional media does not guarantee increasedsales, or even increased floor traffic.

7

By Lee Culver

tions. Add some sizzle, highlight theselling points. Tell what you like about,why it’s the best one to buy, who itwould appeal to and why, or how youacquired it. You can also find good ver-biage on vehicle reviews found on pop-ular third party websites.

• Lemon check – provide a freetitle check through services like Carfaxor AutoCheck. If a problem does showup explain what you have done to cor-rect it.

• Consumer generated content –Internet shoppers know there are a lot ofscams on the web (I’m still waitingfor that check from Nigeria), so theydon’t put a lot of stock in seller’s claims.Instead, they rely on feedback and testi-monials from others who have donebusiness with a particular company.You need to provide that information inorder to build trust on-line.

• Strong dealership USP (uniqueselling proposition) – In other words,why buy from you. Studies showthe majority of shoppers want a priceand compelling reason to buy. Saying

that you have nice people and reallycare about your customers isn’t enough.They want something tangible, like a125 point inspection (explained), freepower train warranty, title guarantee,exchange or return policy, loaner cars,service discounts, and so on. Offer realbenefits, not warm and fuzzy platitudes.

• Show the price of all vehicles –Talk about trust, when you fail to pro-vide a price customers automaticallyassume that it is too high and quicklymove on to another site. When pricingyour vehicles, make sure you are com-petitive with other on-line offerings.

• Video – If you use video, makesure it’s well done and not amateurish.Don’t force video on shoppers, make itoptional.

• Offer alternate vehicles – Manyshoppers start their search looking for adream car, only to find out it costs a lotmore than anticipated. After the shockwears off, they lower their thinking andstart the search all over again. Whenthat happens, it’s not likely they’ll endup back on your website. By suggest-

ing several similar, but less expensivealternatives you have a good chance ofswitching them to something affordablebefore they leave your website, ratherthan lose them altogether.

• Current specials – If you have aspecials link make sure you always havecurrent specials listed. On websites, the‘specials’ link receives the second high-est number of clicks (inventory search isnumber 1), yet an amazing 40% of thetime shoppers get a message that says‘none’ or ‘check back later’. Gee,what message do you think that sendsto your shoppers?

Logically, you would think the majorityof dealerships have adopted these prac-tices, but the sad fact is most haven’t.That mean’s you can give yourself acompetitive edge with the growing num-ber of on-line shoppers by enhancingthe offerings on your website. So takeadvantage of this cost effective way tomerchandise used vehicles and enjoythe increase in traffic to your lot.

Lee Culver is a consultant and trainer with30 years automotive experience. He special-izes in increasing used vehicle department netprofit and can be contacted by email atCulverConsult@gmail.com or phoneat 404-200-4410.

8 www.maada.com

It is clear by the research performed that Internet searchengines have become the primary tool for filtering both vehi-cles and dealerships in a consumer’s search for their next car.And even more so, a dealerships’ website has become a keyextension of the dealer's showroom. In the age of theInternet, online advertising clearly can broaden a dealer’ssphere of influence, and go far to attract and engage con-sumers the way traditional advertising vehicles – newspaper,radio and print – cannot.

What is your digital advertising strategy?

With the growing demand for online advertising, top perform-ing dealers in the country are channeling their advertisingbudgets away from less successful and less measurable mediachannels like newspaper, radio and television, and implement-ing digital marketing strategies that include high-impact animat-ed graphic or video ads displayed on high traffic websites.Smart dealers are cashing in with online display advertising todrive significantly more traffic and profits to their dealership’sSales, Finance, Service and Parts Departments.

Research continues to prove that Digital Ads consistently gener-ate the highest conversions into dealership showrooms, com-pleted lead forms on dealer Websites, and telephone calls intobusiness development centers. And best yet: these leadsbelong only to the dealership doing the advertising, and arenot shared like those purchased from 3rd party lead providers.In other words, display advertising generates good-qualityleads from “in-market” consumers interested in what your deal-ership has to offer, not some generic inquiry made by a con-sumer who doesn’t really know what they are looking for orwho they want to buy from.

With the killer combination of the right message, the rightplacement, and the right marketing strategy, automotive retail-ers make every online ad initiative payoff with increased salesand profits in all areas of the dealership.

A Complete Digital Advertising Solution

The right Digital Advertising Solution is a soup-to-nuts imple-mentation of everything needed to perform like a professionalon the Internet in order to attract and engage more leads.This solution includes:

• Creation of targeted, high-end, media-enriched graphic orvideo banner ads and micro sites that highlight key “inmarket” consumer buying behaviors to capture verytargeted consumers

• Search engine marketing to deliver high quality leadsdirectly to dealership websites

• Pay Per Click advertising to reach a broader audiencesearching for vehicles using specific key words, providingthe best results at the lowest cost

• Placement on geo-targeted and behavioral-targetedad networks

• Month-end reporting to measure what is working, what isnot, and at what cost.

Digital Advertising Consultants

Some of this will be new to many dealerships grounded in theways of traditional marketing. One way to overcome this chal-lenge is to employ personal digital advertising consultants whowill plan, execute and measure the results on a monthly basis.Effective digital advertising consultants review dealership cus-tomer demographics and buying patterns, identify and evalu-ate tactics, pull together a digital advertising plan that makessense and later provide ROI reports on the metrics on all ofthe campaigns run.

Premier Advertising Networks

The power behind the optimal digital advertising solution alsoincludes a premier advertising network, which encompasseshundreds of popular websites to accomplish the following:

• Provides maximum exposure for your dealership;• Generates high lead conversion rates;• Provides geographic and demographic optimization;• Guarantees premium placement on the sites your shoppers

visit most frequently

Every dealership must spend money to sell cars, and that’swhy successful dealers are realizing that online marketing pro-vides the best return on investment and are shifting budgetsfrom traditional media to online initiatives including DigitalAdvertising. You do not have to increase your advertisingbudget to take advantage of digital advertising – you just haveallocate your current budget in the areas that will draw themost attention to your website and leads to your store – theInternet.

• 83% of “in market” car shoppers visit the Internet first to research vehicles• 88% of “in market” car shoppers visit a dealership’s website before entering the showroom

By Susan Burke,Sr. Product Marketing Manager,

ADP Dealer Services

10 www.maada.com

11

By THOMAS WEBB,Chief Economist,Manheim Consulting.

By doing so, many dealers remainedprofitable in 2008. The key to their suc-cess? Correctly valuing – and thenquickly turning – inventory acquisitions.More dealers also took their businessonline, taking advantage of onlinechannels to both buy and sell. Therecord pace at which online activityaccelerated last year foretells a signifi-cant and lasting shift in the wholesaleused car marketplace – one whereonline and in-lane remarketing havebecome seamlessly integrated.

By the end of 2008, even in the face ofa very weak wholesale market,Manheim.com was receiving more than800,000 visits every week, andManheim’s 24/7 online wholesale mar-ketplace, OVE.com, also experiencedrapid growth; the site’s transactionalvolume in Q4 of 2008 grew 90% overQ4 2007. All told, Manheim experi-enced 36 percent growth in its onlinetransactions last year with almost 20percent of Manheim’s volume sold toonline buyers at the end of 2008. Thosenumbers represent not only Manheim’ssuccess, but also the success of dealerswho have achieved efficiencies in oper-ations and adapted to a changing mar-ketplace.

While recovery efforts are under way in2009, it’s important for dealers to con-tinue practicing efficiency in both buy-ing and selling at auction in order tooutperform the market. The good newsis that the benefits of the efficienciesthat dealers achieved in 2008 shouldincreasingly flow to the bottom line thisyear. That’s because, although stillweak, the overall economy now hasspots of strength, as well as signs of sta-bility.

Not surprisingly, the used vehicle mar-ket is improving before any signs of aturnaround in the new vehicle market.In the first quarter of 2009, used vehi-

cle retail sales by dealers were basical-ly flat with year-ago levels, while newvehicle sales were down nearly 40 per-cent.

In addition, used vehicle retail activity inearly 2009 was helped by a strong taxrefund season. The IRS indicated thatindividual income tax refunds were upmore than 12 percent, to $154 billion,as of the first week of March. This risewas the result of the higher standarddeduction and an increase in the maxi-mum earned income tax credit – twoprovisions that are particularly impor-tant to the used vehicle market.

Other efforts are being made to helpconsumers secure loans and spendmoney. The Term Asset-backedSecurities Loan Facility (TALF) programis offering to provide liquidity for pur-chasers of asset-backed securities,which include car loans. Nissan MotorAcceptance, Huntington National Bank,and Ford Motor Credit were three ofthe first deals done under the TALF pro-gram. Although alterations in the TALFprogram are still needed to make it fullyeffective in supporting wholesale autofinancing and retail subprime loans, thesupport already provided to primeretail auto loans is very welcomed.

For the remainder of 2009, MAADAmembers should anticipate a continuedstruggling economy and a weak labormarket – both of which will make cus-tomers value-conscious and credit-sensi-tive. Given that, dealers should benefitfrom a higher number of attractivelycontented and reasonably priced end-of-service fleet vehicles that will enterthe wholesale market in 2009. On theother hand, the availability of off-rentalvehicles in the wholesale market willcontinue to fall significantly. So, hereagain, dealers will be wise to utilizeonline channels to efficiently find thespecific models and options that theircustomers want.

At Manheim Consulting, we wishall MAADA members success overthe coming year, and we will bewatching and analyzing the trendsclosely as the year unfolds. Contactme at Thomas.webb@manheim.comany time if we can be of service,and check out our Web site atwww.manheimconsulting.com.

As every member of the MAADA is well aware, we arein the midst of an economic crisis. Unemployment in theU.S. is at a 26-year high, and consumer vehicle salesare at a 28-year low. To survive these trends, successfuldealers have adjusted their used vehicle buying andselling strategies.

Tom Webb is chief economist forManheim Consulting.

“While recovery

efforts are under way

in 2009, it’s important

for dealers to continue

practicing efficiency

in both buying and

selling at auction in

order to outperform

the market.”

12

Marvel’s Iron Manappeared on theshow’s openingweekend.

13

When the 27th Annual AJCInternational Auto Show opened

on Saturday, March 14th, itmarked the one year anniversary of

the tornado strike in DowntownAtlanta. This catastrophe caused mil-

lions of dollars in damage to the area,including the Georgia World CongressCenter, home of the Auto Show.

“Building B of the Congress Center wasbadly damaged by that massive torna-do,” remarked Randy Morris,Chairman of the Metro AtlantaAutomobile Dealers Association(MAADA). “It’s hard to believe that

just one year ago this show floorwas a disaster area, especially

when you see the phenomenalpresentation of new vehiclesfrom 33 different manufacturersthat are now on display.”

Atlanta area press were the first tosee the show’s great lineup of vehiclesduring Media Day on March 13th.Press conferences were held in the Kia,

Ford, General Motors, Honda, Nissan,Infiniti, Chrysler, Jeep and Dodgeexhibits. The Greater AtlantaAutomotive Media Association(GAAMA) held their first annual meet-ing following these press conferences.See their report in this issue for moreinformation.

“The Night of Cars & Stars” previewparty followed Media Day and wasonce again a major success, with allproceeds benefiting Children’sHealthcare of Atlanta and the WhenEveryone Survives Foundation. Specialguest Earl Lucas of the Ford MotorCompany joined Randy Morris andMAADA President Shayne Wilson onstage at the kickoff ceremony. Lucas isthe Design Chief of the 2010 FordTaurus, which was featured at theshow.

There were heavy rains during theshow’s opening weekend, but this didnot deter the public from showing up inlarge numbers. This was no surprise,

though, since there was no betterindoor attraction to be found anywherein the city.

The show featured over 500 new vehi-cles, including a large selection of2010 pre-production models. Therewere also three concepts on display:Ford Explorer America, Kia Soulsterand the Lincoln C Concept.

As usual, show goers had the opportu-nity to see many great special attrac-tions at the show, including the alwayspopular character appearances. Thefirst to appear was Marvel’s Iron Man,who could be seen at the show’sentrance on the opening weekend.This same area was manned bySpongeBob Squarepants during thesecond weekend. Both attracted alarge group of admirers, all with cam-eras in hand to capture the moment.

A selection of 27 vehicles from theBruce Weiner Microcar Museum was,unquestionably, one of the greatest

WHAT A DIFFERENCE A YEAR MAKES.

Continued On Page 14.

Left To Right: MAADA Chairman RandyMorris, Earl Lucas of the Ford MotorCompany, and MAADA President ShayneWilson at the Preview Party.

Left To Right: MAADA Chairman RandyMorris, Earl Lucas of the Ford MotorCompany, and MAADA President ShayneWilson at the Preview Party.

14 www.maada.com

attractions ever seen at the show.Weiner’s museum in Madison, Georgiais the home of the largest microcar col-lection in the world.

Nationwide Insurance, the show’s offi-cial insurance sponsor, attracted alarge gathering in their “Show Car PitStop.” This area featured the officialShow Car of the NASCAR NationwideSeries. Attendees could also play

games and win prizes and test theirdriving skills on a racing simulator.

The show once again appreciates theefforts of the Ford Motor Company inbringing in Atlanta Falcon players forappearances. Attendees enjoyed meet-ing both Quarterback D.J. Shockley andWide Receiver Michael Jenkins on March21st.

The Auto Show will be moving toBuilding C of the Georgia WorldCongress Center next year.

Dodge Charger Honda FitHonda Fit Nissan Cube

Infiniti G Convertible

The Microcar Museumwas a big hit.

Smart Car for two.

15

Corvette ZR1

Ford Explorer NorthAmerica ConceptFord Explorer NorthAmerica Concept

BMW 135i

Mercedes SLConvertible

2010 MercuryMilian Hybrid

Hyundai Genesis

Lincoln CConcept

Comcastbrought inthe HootersCalendarGirls andSpongeBobduring thefinal weekend.

Atlanta Falcon starsD. J. Shockley (left)and Micheal Jenkinsmeet their fans.

Atlanta Falcon starsD. J. Shockley (left)and Michael Jenkinsmeet their fans.

Many dealers do not properly measurethe production of the business office asit relates to the actual performance ofthe individual business manager. Areyou only using your dealership’s netproduction (after charge backs) andDMS reports? Or worse, are you stillusing handwritten paper logs? Doesthis report separate the production ofeach manager or does it only show thedepartment total? It is important tosearch at net profitability and to lookfor trends in short-term charge backs.However, you should not rely on this asthe sole measure of performance foryour business office. Your trainingdirectives and evaluations should bebased on numbers that reflect individualperformances, not only net profitability.

The first step a dealer must take toproperly measure the business office’sproduction is to first find out what eachmember of the department is actuallyproducing. To do this, a dealer must

use an electronic log that is properlyset up – one that has the ability to sep-arate the production for each businessmanager. Product penetration andincome statistics for each product lineshould be included. This data is benefi-cial for making adjustments to thedefaults in your menu system. These arevaluable for product pricing, coachingon an individual basis, and managingperformance-based pay plans that aretied to PVR and penetration.

Additionally, having your F&I serviceprovider conduct regular training activi-ties in your store will maximize theseprocedures.

After installing the proper systems tomeasure the business office’s perform-ance, the next step is to verify the ratecard or menu retail pricing defaults. Isyour business office using a rate cardor menu pricing defaults less than$1,000 for their service contract prod-

uct line? Do you know the averageprofit per service contract sold? Withdwindling finance reserve profitabilityin today’s market, business managersshould make up the difference andcharge more for “line 5” products suchas service contracts. If not, they willforever struggle with sub-standardPVRs. A good electronic log will putthis type of information at your finger-tips and will give you the tools fordirect sales activities and pay plans.These will maximize the income foryour dealership and your reinsurancecompany.

Without constant training, properlypriced product lines, incentive basedpay plans, and a way to measure pro-duction, very few business managerswill reach the elusive “$2,000 percopy.” By implementing these stepsinto your dealership, business managerswill take more ownership of their dailyperformance. When they have to entertheir production into a log everyday,they will do whatever it takes to avoidlogging a deal with zero back-end prof-it. There are many more things thatneed to be done correctly during thesales process to maximize F&I profits.However, if you measure your businessmanager’s properly, it will bring clarityto your efforts.

Brian Williams,Dealership Development Manager

Brian Williams can be reached at(800) 967-3633 or at BWilliams@AFASinc.com.

We have all heard of the business manager who “runs$2,000 per copy.” You may have questioned theexistence of this phantom character and refuse tobelieve this level of F&I performance is attainable.What you may not be aware of is he/she could alreadybe working in your business office! The question is, willyou know when he/she has hit that level?

www.maada.com16

Most financial statements have somemethodology as to how they are organ-ized. Assets are generally listed inorder of “cashability” and Liabilities aregenerally listed in order of “payability”.In the expense section of your financialstatement the expenses are generallylisted in order of “controllability”. Agood rule of thumb to keep in mindwhen attempting to think through theprocess of re-structuring you business isto work first on those items that are list-ed higher in order of “cashability”,“payability” or “controllability”.

Besides cash in bank, your most liquidasset (hopefully) are your vehicle inven-tories. Rather than spending more timerestructuring the expense side of thebusiness, many good operators arerestructuring their assets, (inventories)to produce greater turnover. How doyou do that? The process is really quitesimple. Stock a greater percentage offaster moving inventory and reduceinventories that are slower movers. I

know this sounds simplistic and we allwant to do this. All I can tell you afterhaving specialized in Vehicle inventorymanagement for over 20 years now, isthat it can, and is being done. You can-not do it with emotion, you cannot do itwith gut feel, you cannot do it without asound system and process that all man-agement believes in, understands, andmost importantly, implements on a dailybasis.

The real question is, how do I increasemy rate of turnover? The short answeris, Knowledge, Information andImplementation. One of the buzzwordphrases of the 80’s was “knowledge ispower”. In the 90’s it changed to“information is power”. In the new mil-lennium, the reality is with all the knowl-edge and information in the world, truepower is only accomplished withimplementation. Without specificsystems, processes and feedback cou-pled with accountability, true implemen-tation simply cannot happen.

Have you ever wondered how one ofyour competitors always seems to beable to deliver more vehicles than you?Or how someone in your “20 group”was continuously selling 1 to 1 (ormore) used to new? Or how theygrossed more per unit than you? Orhow they were able to experience littleor no “wholesale pain”? It’s all aboutthe turn. We all know that the “quickerturners” gross more. That goes forboth the new vehicle department aswell as the used. This is no secret. Andbelieve it or not, “the turn” is all aboutyour inventory.

Cover YourAssets

By Scott DreisbachVice PresidentValuinsight, Inc.

18 www.maada.com

Calendar year 2008 has come and gone and most everybody Italk to in this business is glad it is over. I have recently detectedrenewed optimism since early in January and the momentumseems to be slow, but steady. Most of us have re-structured theexpense side of the business. Unfortunately, I have seen manystores try and expense themselves into a profit. This is a slipperyslope and if expense restructure is not thought through very care-fully, many things can be put on the chopping block that direct-ly contribute to generating sales and gross. One of the biggestmistakes I see over and over again are dealerships that cut itemsthat, in the short run might seem like the right thing to do but in thelong run, hurts the stores ability to produce gross.

One of the secrets of success of theworld’s largest retailer-Wal Mart isprecise inventory management. Eachlocation knows, without any doubt, thespeed of the turn of over 15,000 indi-vidual items. They know how manythey have on the shelf, how many theyhave in the pipeline, if the rate of turnis increasing or decreasing, their returnon investment, how price effects shelfmovement and many more key indica-tors that relate to increasing sales witha more effective inventory. If it workswell, they get more, if it doesn’t, theycut back. They do pay attention toregional trends but I can assure youthat different stores in different loca-tions in the same market area havevastly different inventories. A goodexample is North side Chicago vs.South side Chicago. Same RegionalMarket, completely different demo-graphics, completely different invento-ries. Focus on your store, your loca-tion, your traffic, your demographicsfirst.

There are a number of good systemsout there for today’s new and used

vehicle inventories. Naturally, I wouldlove to tout the features and benefits ofmine but this is not the time or place fora commercial. The important thing foryou to consider is whether or not youare really satisfied with the way youroperation analyzes your sales and cor-responding inventories and what yourpeople do, on a “proactive” basis oncethey know the facts. Do you have aspecific system and process that youuse to make inventory decisions on adaily basis? Do you use and rely uponthat system to make inventory deci-sions? Is “gut feel” being used at yourstore?

Below is a recent headline (January29th 2009) pulled directly from aDealer Newsletter I get daily.“Fundamental transformation' inremarketing industry” Manheim2009 Used Car Market Report

“Though 2008 was one of the mostchallenging years ever for the U.S.automotive industry, used vehiclesremained a source of profits for thosedealers who were able to value trade-

ins correctly and turn inventories quick-ly in 2008. As national attentionfocused on the economy, fundamentalshifts were taking hold in the remarket-ing industry as both wholesale con-signors and buyers looked for ways tobecome more efficient when buying orselling, according to Manheim's 2009Used Car Market Report, released thisweek”.

Suffice it to say, there are additionalprofits available to those who takeinventory management seriously. Doyourself a favor and learn about whatyou can do to improve your bottomand “cover your Assets”.

If you would like to learn more or talkto me about anything, please drop mean E mail, give me a call, or visit ourwebsite at http://www.valuinsight.com .Scott Dreisbach, Vice President,Valuinsight, Inc., 561 368 7810 X 108,sdrize@valuinsight.com

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www.maada.com20

In my last article, I stressed the impor-tance of implementing an Identity TheftProtection Program otherwise known asthe Red Flag Rules. This time I want tocomment once again on the InformationSecurity Program otherwise known asthe FTC Safeguards Rules. The Red FlagRules concentrate on identifying poten-tial red flags or inconsistencies in infor-mation received from a consumer orthird party that documents or providesevidence of a consumer’s identity andwhat to do with that information.Information Security concentrates onthe controls and employee awarenessof proper controls to secure a cus-tomer’s information and right to priva-cy. The two programs working togetherreally do form a partnership.

Imagine for example that you haveyour employees using laptop or desk-top computers to perform their dailyduties, a common practice in today’swork environment. These computershave stored on them your customers’non-public personal financial informa-tion. Then the laptop disappears or theinformation on these laptops or desk-tops is pirated. How might this happen?Files and information could have beentransmitted through e-mail, or copied toa flash/thumb drive and merely walkedout of your organization. Now we havereporting and compliance issues withthe Red Flag Rules and also whether ornot your organization complied withthe FTC Safeguard Rules. The questionsand investigations start.

The FTC Safeguards Rules have beenaround since 2003. As I sit here andwrite this article, I can tell you that inmy experiences with dealer organiza-tions not much has changed since that

time. Many dealers have done nothing,absolutely nothing to comply with theFTC Safeguards Rules. No attempteddocumentation, understanding of thelaws, no conversations with attorneys,accountants or other advisors — zero,zilch, nothing. Sshhh … don’t tell any-body. Other organizations haveattempted to document their informa-tion security program but have notmaintained (that means kept up) theprogram through on-going identificationof high risk areas as these areasbecome known, employee training, doc-umentation of corrective measures oncea high risk area or weakness is identi-fied, etc.

Some key areas of responsibility andthings to focus on would be:

• Make sure the program identifieswho is responsible for the program,such as a Program Co-coordinator

• Make sure the program identifieskey areas of high risk

• Make sure the program describescorrective steps to minimize these highrisk areas – be detailed in your docu-mentation down to the employees(ifpossible) who are actively involved inthe security measures

• Make sure your plan is updatedcontinuously, in other words it’s part ofyour organization’s culture and is topof mind (not top of a book shelf or filedrawer)

• Make sure your plan addresses theIT environment including passwords,screensavers, firewalls, informationusage, and venues of transmission both

inside and outside your organization

• Make sure you have signedacknowledgements from your employ-ees on training, understanding andcompliance with the plan

• Make sure you have signedacknowledgements from your serviceproviders that they will protect andsafeguard your customers’ information

• Make sure you involve legal coun-sel with the overall plan, its documenta-tion and structure/involvement in yourorganization’s culture

You will notice I started each item withmake sure, these will more than likelybe a must in order to pass muster withyour legal counsel and other advisorsyou choose to employ. If and when anidentity theft breach occurs, it is myguess that the next thing to fall underscrutiny when the questions start beingraised will be your information securityprogram. If we have not addressed orgiven this area the attention it deserves,now would be a good time to gatherthe troops and tackle this along withthe Red Flag Rules because they trulyare a partnership. Consider havingyour internal auditors check on both ofthese areas and report back to youtheir understanding of where yourorganization stands. Remember, inspectwhat you expect. You cannot managewhat you do not monitor. If peopleknow you are looking and taking theseareas seriously your organization willbe better positioned to have that con-versation with legal counsel whether itbe your own or someone else’s.

Identity Theft and Information Security— A Partnership

Wayne A. Fortier,CPA - Dixon Hughes

It requires no special hardware, just an Internetconnection. You simply scan or enter data from thedriver’s license or ID presented to get an immediateverification from the state’s database. A false identi-ty can be revealed if the data on the license or IDand the state’s records don’t match. You can also seehow many times that these forms of identificationhave been checked during a 48 hour period.

According to the FBI, thieves attempt more than $5.5billion a year in check fraud. You’ll find this serviceto be extremely valuable prior to customer test drives.It will immediately alert you about driver’s licensesthat have been suspended or revoked due to DUI orother offenses.

For more information on the LicenseMatch tool, please contact the MAADA at 770-916-1741 or via email at training@maada.com.

Designed with auto dealers in mind,The State of Georgia’s new LicenseMatchtool is simple, yet powerful online tool tohelp verify identity.

Call Maureen Brown at 800.679.8807 x906 orvisit www.autocount.com for more information.

22 www.maada.com

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A five-person panel of GAAMA judgeschose the GM models over dozens ofother candidates and presented the“GAAMA Peach” awards prior to theauto show preview party on March 13.Sam Homsy, Regional Marketing Managerfor Cadillac, represented GM at this pres-entation.

“The judging was very close with severalcandidates gathering votes from the panel.But in the end, the Buick LaCrosse andCadillac SRX were the clear winners,” saidGAAMA President Jim Tucker.

Other models judged included the FordTaurus and Fusion, Cadillac CTSSportwagon, Honda Infusion, Kia Soul,Nissan Cube, Chevrolet Equinox andLexus 450h.

“The 2010 Buick LaCrosse embodies con-temporary elegance,” said Brad Flaaen,Regional Sales & Marketing, Buick,

Pontiac and GMC . “With its uniquedesign elements , fit and finish, andadvanced technology -- the new LaCrossewill certainly provide consumers with aworld-class experience. Our award-win-ning LaCrosse builds on the success ofEnclave as the next step in Buick’s revital-ization and we thank GAAMA for recog-nizing this.”

"Cadillac boasts a tradition of bold, head-turning design and our 2010 SRXCrossover builds on that reputation," saidJennifer Costabile, Regional Sales &Marketing, GM Premium Channel. "Theredesigned SRX being awarded Best 2010model by GAAMA is proof positive thattechnical precision blended with old-world craftsmanship will continue tocharm the emotional and pragmaticsides of our luxury consumers."

This was the first year of the

awards from GAAMA, a year-old associa-tion comprised of automotive journalists,corporate communications specialists,media organizations, auto manufacturersand other professionals working in theautomotive media industry from thegreater Atlanta area as well as other near-by cities in the Southeast.

“GAAMA is looking forward to expandingthe awards program at the 2010 AtlantaAuto Show,” Tucker added. “Our mem-bers all agree that the Atlanta Auto Showis a great showcase for the automotiveindustry in the South. We look forward tobringing greater recognition to the showthrough our membership.

“The Atlanta Auto Show also will be thelocation for our annual membership meet-ing and election of officers,” he added.The judging panel was chaired by JamesLewis of the Birmingham Times. Othermembers of the judging panel includedRyan Rees of thecarcouple.com, GregMorrison of car-data.com, Bob Jackson ofCBS radio and freelance writer BeckyBeall of Pelham, Ala.

GENERAL MOTORS

WINS TWO GAAMA

PEACH AWARDS

AT ATLANTA AUTO SHOW

The Buick LaCrosse was named Best in Show and theCadillac SRX was chosen the Best 2010 model at theAJC International Auto Show by the Greater AtlantaAutomotive Media Association (GAAMA).

By Ryan R Rees,Vice President, GAAMA

(Left to right) GAAMA’s Jim Tucker and JamesLewis present Peach Award to GM’s Sam Homsy.

26 www.maada.com

When Stephen Jarrell, Jr. joined the MAADAstaff as the Virtual Academy’s ProductionManager in January, he knew that he hadfinally accomplished his goal of editingvideos as a career. What’s so remarkableabout this accomplishment is that Stephen hasa wealth of experience as an editor even

though he is only 21 years old.

“I have been video taping and doing my own editing since Iwas 13 years old,” said Jarrell, who has edited over 20Virtual Academy workshops since being hired.

Jarrell takes pride in editing as much video footage as possi-ble each day, spending long hours making tedious editingdecisions that make Virtual Academy online workshops flow ata perfect pace.

“Stephen has a great work ethic and he is always looking forbetter ways to improve the videos, while learning new skills toperfect his craft. He is a valuable addition to the VirtualAcademy staff,” stated Randy Nelson, MAADA’s Director ofEducation.

Stephen was born in the Grand Cayman Islands. His paents, Stephen, Sr. and Cindy, were living in this tropicalarea because of his father’s employment at the TreasureIsland Resort. Senior is the leader of the Steve Jarrell &the Sons of the Beach Band, famous for performing theirrepertoire of oldies and beach music since 1981. Thisband has played all over the world, includingCanada, Thailand, Spain and theBahamas. They were alsothe top act at the2008 MAADAChristmas party.

After two years at the Treasure Island Resort, the Jarrell familymoved to Virginia for one year, then to Springfield, Tennessee(near Nashville). Stephen Jr. considers Springfield to behome. He graduated from Springfield High School in 2006.Stephen also played and coached on the school’s tennis teamfor four years.

Stephen even followed in the musical footsteps of his famousdad while in high school, forming the Crazy Krackaz Band in2002. The band members wrote all of their own Hip Hop andRap music and produced three different albums during theirthree years together.

Stephen also worked at WSGI-AM radio while in high school,editing their news reports. He even filled in for his dad as anon air talent from time to time on the “Daddy-O on the PatioShow,” which featured oldies and beach music, and engi-neered a weekly radio law talk show.

Following high school, Stephen enrolled in the School ofAudio Engineering in Nashville. He moved to the Atlanta areaafter this training.

Stephen Jarrell, Jr. joins the Virtual

Academy Staff as Production Manager

MAADA NEWSVolume 6 Issue 2

“Junior” meetsthe HooterCalendar Girlsat the recentAuto Show

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On Saturday, April 25, 2009at Centennial Olympic Park andthree other Metro Atlanta loca-tions, thousands of families andbusiness leaders will join togeth-er in the March of Dimes annualMarch for Babies - the nation’s

oldest walk fundraiser honoringbabies born healthy and those that need help to survive andthrive.

The Metro Atlanta Automobile Dealers Association has beena Silver Sponsor of this great campaign for the past sixyears.

Registration begins at 7:30 a.m. with the 5.2 mile walk kick-ing off at 9 a.m. Participation in March for Babies will pro-vide a memorable and rewarding day for the whole familyincluding local celebrity appearances, live music, costumecharacters, face-painting and more. There are 29 otherMarch for Babies events throughout the state of Georgia.To register for an event in your community visit,www.marchforbabies.org.

Funds raised by March for Babies in Georgia help supportprenatal wellness programs, research grants, NeonatalIntensive Care Unit (NICU) Family Support Programs andadvocacy efforts for stronger, healthier babies.

The most urgent infant health problem in the U.S. today ispremature birth. It affects more than half a million babies

each year, with the number growing every day. This pastNovember, the March of Dimes issued a Report Card onPremature Birth, giving the nation a “D” and Georgia, thegrade of “F.” The March of Dimes is committed to reducingthis toll by funding research to find the answers to problemsthat continue to threaten the health of babies.

March for Babies corporate sponsors include State Sponsor -Macy’s; Metro Atlanta Presenting Sponsor - KaiserPermanente; Platinum Sponsor – AirTran Airways; andPicnic Sponsor – Publix Supermarkets, Inc.

National corporate sponsors are Kmart, the March of Dimesnumber one corporate supporter, CIGNA, ContinentalAirlines, Famous Footwear, Farmers Insurance Group ofCompanies, FedEx, First Response, Liberty Tax Services,Mead Johnson Nutrition and Ther-Rx.

To join in, visit marchforbabies.org, or call 404-350-9800 tosign up as an individual, to start a corporate, family/friendsteam, or donate to help babies be born healthy. Participantscan also pick up sponsor forms at Kmart.

The March of Dimes is the leading nonprofit organization forpregnancy and baby health. With chapters nationwide andits premier event, March for Babies, the March of Dimesworks to improve the health of babies by preventing birthdefects, premature birth and infant mortality. For the latestresources and information, visit marchofdimes.com or nacer-sano.org.

READY. SET. MARCH FOR BABIES!March of Dimes Fights for Healthy Babies

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SCHEDULE OF CLASSES

www.maada.com

APRIL 7 SALES PERSONAL BUSINESS DEVELOPMENT

APRIL 9 SALES HANDLING INCOMING SALES CALLS

APRIL 13-17 SALES PROFESSIONAL SELLING SKILLS

APRIL 13-16 BODY PAINTLESS DENT REMOVAL

APR 27-MAY 8 SERVICE PROFESSIONAL LUBE/SAFETY INSPECTION & HEAT & A/C TECHNICIAN

MAY 11-15 SALES PROFESSIONAL SELLING SKILLS

MAY 19 SALES PROFIT BUILDING PRESENTATIONS

MAY 21 SALES NEGOTIATING FOR GROSS

JUNE 1-5 SALES PROFESSIONAL SELLING SKILLS

JUNE 1-12 SERVICE PROFESSIONAL LUBE/SAFETY INSPECTION & HEAT & A/C TECHNICIAN

JUNE 8 SALES USED VEHICLE MANAGEMENT

JUNE 9 SALES SELLING USED VEHICLES

JUNE 15-19 SALES PROFESSIONAL SELLING SKILLS

JUNE 23-24 SERVICE SERVICE ADVISOR TRAINING

JUNE 24 SALES LEASING

JUNE 29-JULY 3 SALES PROFESSIONAL SELLING SKILLS

JULY 6-17 SERVICE PROFESSIONAL LUBE/SAFETY INSPECTION & HEAT & A/C TECHNICIAN

JULY 9 SALES PERSONAL BUSINESS DEVELOPMENT

JULY 10 SALES HANDLING INCOMING SALES CALLS

All Atlanta classes will take place at 440 Interstate North Parkway. Classes are subject to change.For registration or more information, please call 770-916-1741.

Have you ever considered using online training, but justrefused to pay the high cost?

If your answer is yes, you will be happy to know that onlinetraining is now a�ordable from The Virtual Academy ofAutomotive Professionals. For one low annual cost, yourentire dealership can utilize quality sales, management andÞxed operations online training anywhere there is an internetconnection.

The Virtual Academy’s interactive media presentationsare designed to inform, educate, inspire and train yourpersonnel. They include live and on-demand streamingvideo, downloadable programs, Power-Point slides,interactive email contact, testing and certiÞcation.

Contact us today for a demonstration of The Virtual Academyand information on signing up your dealership.

Toll Free: 1-877-4-Academy • email: sales@8774academy.com