These are tough times in the auto industry, but things have been tough before. Sure, auto sales are at a 15-year low and credit is tight, but that doesn’t mean we should roll over and play dead. No matter what the future holds we can be sure that it will be hard work and innovation that bring us through this crisis. Our industry managed to make it through the Great Depression and we’ll make it through this crisis too, don’t let the doomsayers tell you different.
When the market is down, like it is right now, it takes new ideas and new ways of thinking to stay on top. As Bill Owens, the former Governor of Colorado, puts it, “We know that when it comes to technology and the economy, if you're not constantly moving forward, then—without a doubt—you're moving backwards.” That is what we, as an industry, must do: Harness technology to move forward, because as goes the auto industry so goes the American economy. In fact, as Annette Sykora, chairman of the NADA explained in her testimony before Congress, “For decades, the nation's auto dealers have been the bellwether for the state of this country's economy. Auto sales constitute 20 percent of all retail spending in the United States and generate up to 20 percent of the sales tax revenue for state and local governments, many of which are themselves currently facing budgetary shortfalls.”
It is easy to say that we need to embrace new technologies and ideas in order to move the dealer industry into the 21st century, the hard part is knowing which technologies and ideas to embrace. Every vendor that comes through your door has the latest doodad that will “revolutionize the industry,” but they can’t all be right. So how do you tell the difference? How do you tell if a product is the next Pets.com or the next Amazon? It certainly can be difficult, but the two most important factors are education and networking with other dealers to learn about their experiences; and you can find both those things at the NADA’s Annual Convention.
With tight budgets and an uncertain economy it may seem like a good idea to skip the convention this year, but while you might save a few bucks skipping the convention, by doing that you lose the opportunity to learn where the industry is headed and how you can be there first. There is no denying, change is afoot in the auto industry. Smaller more fuel efficient cars are on the way and some are already here; dealership consolidation is becoming a reality; newspaper advertising is on the decline as Internet advertising grows; those and a whole host of other factors have made a lot of waves in 2008, that is why, as incoming NADA chairman John McEleney explains, “Management Education has taken significant steps to tailor its workshops at the 2009 NADA Convention in New Orleans to today’s economic climate. These workshops will focus on recession-proof business operations that are vital to every dealer in the country.”
The NADA knows that auto dealerships are integral parts of their communities and the theme of this year’s convention, “Committed to Community,” emphasizes that fact. Auto dealerships directly employ 1.1 million people and constitute as much as 20 percent of sales tax revenue for local governments, not to mention the little league sponsorships, community events, and the myriad of other ways that dealerships support their local communities. Without sufficient car sales, however, dealerships won’t be around to make those contributions. That is why NADA has created five tracks that allow dealers to hear from experts in a range of fields and learn what they can do to grow their businesses in the upcoming year.
The first track, Strategic Business Management and Success Planning, covers a wide range of topics. For example, Erin Kerrigan, Vice President of AutoStar, will speak about “The Credit Crisis: Implications and Opportunities for Your Business.” She will address the current credit crisis and the dangers and opportunities it presents, with a concentration on the links between housing and auto retail. Also in the mix, dealership management consultants Chip Maher and Steve Risso will look at how “Single-Point Dealerships can Survive and Thrive in Today's Market” by examining the NADA/McKinsey dealer performance study and its implications, and how to put them into practice at your dealership.
Track two, Business Development—Finding and Keeping Your Customers, begins with a workshop from Mark Tewart, author of How to be a Sales Superstar, called “Creating Superstar Salespeople” where Mark will share specific information from dealers and managers to help you create highly productive salespeople. In addition to the sales side of the business, Dorthy Miller Shore, president and CEO of the Miller Agency, a Texas based advertising agency specializing in automotive, will cover how to best take advantage of new media, such as the Internet, so that you will know the return on investment from your advertising and can hold your advertising partners responsible for their results.
If you need help with your used car sales or your special finance department, track three, Vehicle Sales—Performance and Profitability, is the one you need to attend. Sessions such as “Survive or Thrive in the Used-Car Superstore Era” with Dale Polluck of vAuto, and “Five Surefire Techniques to Increase Special Finance Volume and Profit” with Mike Tamas, vice president of training, will cover topics such as how to realize your full used-car profit potential and what are the crucial behaviors and actions necessary to turn a credit challenged prospect into a satisfied customer and increase your profits at the same time.
One potentially highly profitable part of a dealership that is often overlooked is the service department. To address this, NADA has included track four, Fixed Operations—Advantages of Unity, in this year’s convention to help dealers and managers learn how to squeeze more money out of the back-end of their dealerships. This track will cover many different aspects of the service department with sessions such as “Maximize Service Advisor Performance: Four Easy Steps to Enhance Performance” with Jim Phillips, a dealership management consultant with NADA, and “Key Performance Indicators for Dealership Collision Centers” with Bernie Blickenstaff of Collision Management Services.
The fifth and final track, Human Resource Management and Development, will concentrate on the most important asset any dealership has, their employees and managers. A variety of speakers will be available, including Art Niemann, Sr., chairman of Art Niemann and Company, who will outline the four “absolutes” necessary to achieve sales success, integrity, positive outlook, meaningful relationships, and open communication, in his workshop called “Improving Attitudes, Efficiency and Communications in the Dealership.” Christopher Hoffman, regional managing partner with Fisher & Phillips LLP, will explain how to make sure you avoid litigation resulting from your pay plan in his seminar, “Avoid Senseless Litigation: How to Build a Legally Sound Pay Plan.”
Besides the plethora of workshops being presented at this year’s NADA convention, there will be plenty of opportunities to network with other dealers to find out what they’ve been doing to grow their businesses. You will also hear from other important speakers such as Alan Mulally, president and CEO Ford Motor Company, and the incoming NADA chairman, John P. McEleney.
McEleney is starting his tenure as NADA chairman at a tough time, but as he explains, “NADA Management Education’s purpose has been—and continues to be—to research the educational needs of NADA and ATD member dealers and managers, to provide educational resources to serve those needs,” and with the upheaval in the industry right now, there has never been a greater need for education and training in the auto dealer industry.
To be sure, there is a lot to see and do at this year’s convention. But leave yourself time to walk the convention floor and check out some of the exhibitors. We’ve highlighted a few of the businesses that we think can help you gain a competitive edge. They are listed (in alphabetical order) in our helpful “exhibit hall pull-out map” in this issue. These vendors are looking to be your partner in success and they might just have that perfect solution you’ve been looking for, so cruise by their booths to hear what they have to say. It could be the best decision you make all year.
Woody Allen said, “Eighty percent of success is just showing up,” and we here at Dealer Marketing Magazine encourage you to take his advice. Do not let discouraging financial news, hearings on Capitol Hill, or the crazy guy on the corner screaming about the end of the world dictate your world view; this crisis will end just as sure as the sun will set. If you do the hard work now of preparing your business to succeed with the right training and the right partners, you will be in a position to succeed when things do turn around. If you don’t you’ll be starting behind the dealership down the street who did prepare themselves for success.
If you want to register for the NADA convention, or you would simply like more information, visit http://expo.nada.org. There you will find a complete list of speakers, workshops, and other details, including specific instructions on how to register.