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Fear and Loathing in Scottsdale

I was visiting Phoenix to see my mom recently. Ah, my old hometown, talk about changes. I was staying with a good friend in Paradise Valley and we were driving home on a Sunday afternoon from a workout at a Scottsdale gym. We saw an accident and did a detour and cut over to Greenway road using 64^th Street. This is prime real estate, but I quickly noticed there was an open house on every corner for the little over two miles we covered. I don't mean on just on one corner, I mean signs on every corner of every block indicating open house and even signs saying bank approved short sell. People, this is prime time real estate, Scottsdale, home of the big timers and big time wannabes. These people were now buried and wanting to sell houses...houses that normally do not know the word depreciate. But, that is not all that changed. Fashion Square, the place for the beautiful people to be seen, had changed to a spot north named Kierland.

Has your business changed? Because Phoenix sure has changed since I grew up. It used to be a small town of fifty thousand people in the middle of the desert hard by a normally dry river bed. The social life was Frank Kush's Arizona State Sundevils and the Phoenix Suns. Phoenix has thrived and is a top 5 or 6 city population wise, depending on who you believe. Phoenix has handled change quite nice economically, until recently. The snow won't go away up north and the sun will always shine in Phoenix. No doubt it will come back. It is over built, but being a desirable place to live makes it a good bet to rebound sooner rather than later. What about your business...are you going through change well and maximizing every dollar you can? Here are two sure fire ideas that work.

I am offering the best service customer recovery tool on the face of the world period. There is a free demo of this product at www.rlautomotive.com. Go to the customer retention label and when you get there hit click here for a free online web presentation. It will blow your mind. See a dealer, a real dealer, who has recovered customers gone absent his store 400 and 500 days... to the tune of over One Hundred Thousand Dollars in one month! That part alone is a FIFTY to ONE return on investment. But it does not stop there. You will see all his scheduled maintenance and appointment confirmation and all the money it brings in off his system. His numbers off his DMS. Watch a dealer recover Ninety Four Thousand Dollars in Customer Service Declines. Total plus income. And it's not a mail out, but a software program that needs NO humans operating it... that makes all your phone calls every day to get you back to the basics in these trying times. Plus there are no long term contracts. Find out why a big mega dealer dumped their old provider and why the worlds' largest Honda dealer just signed up all his agencies. This works in the same way for any size dealer and is priced to fit your volume. In fact, if you are not totally satisfied shut it off...there are not any long term contracts. After you look at this call me and I will fill in all the blanks and answer any questions. Toll Free, 1-888-295-5314 Ext 703.

Are you as concerned as I am about margins on these new vehicles....or lack thereof? Many of the vehicles selling are smaller and have little or No margin. It is more imperative now than any other time to put on a value added product to help your customer and bring them back to service. The biggest lesson dealers need to get is driving sales to service and keeping them there as loyal customers, so that they have the 70 to 80 percent chance of being a repeat customer. Now, let's say you put a package of paint, fabric, tire and wheel, roadside assistance, windshield chip and paintless dent removal and etch. Let's say you put this package on for about $310 but of that you put about $240 of this amount (estimated, on worst case scenario) into your offshore, dealer owned account at capital gains tax rates. Let us further assume that the administrative fee was reinsured with an A plus company. Then you could markup your vehicles easily $699 to $999 or more depending on your market and make extra gross AND put $240 into your offshore account at a capital gains rate of tax. Plus, all claims are to be brought to your dealership whenever possible, giving the customer one more chance to touch your service department. In my imaginary dealership I have this on every one of my cars and on the 200 new and used cars a month I sell, I am putting $48,000 a month in this account. Since I have held the term on all the policies to three years I am earning some big money fast. $576,000 in net profits going into the same account my dealer owned service contract money goes. I think I will pay all claims with investment money made. Only this is not an imaginary program, there are dealers making significant profit with this great program. Gang, this is a total winner. Call me and I will fill in the blanks. Until next time keep it lean and clean.