good morning everybody as I said yesterday on the main stage I blew into Atlanta in 1980 two of my mattresses tied to the roof of a buy here pay here car I was broke I was divorced I was upset depressed it you can look for the adjectives 'im it was not a great time in my life but I made two decisions as I drove up I I 75 that night didn't hear I was 35 years old starting over again again this wasn't the first time and I had two mattresses tied to the roof all wrapped up in plastic and here I was like I say 35 years old starting over again again and as I drove up i-75 I made two decisions that night decision number one I will be a success ladies gentlemen success is a conscious top of the mind thought process success is a decision that you make success is a point in your life when you achieve focus and intensity I am NOT saying the people in this room are not successful you certainly are successful but the challenge is are you as successful as you should be could be deserve to be capable of being are you operating at a level below your capacity now this is not a tent revival you don't need to stand up and faint or cry or confess or anything like that but you got to just tell yourself that me it's telling me the truth success is a conscious decision and nobody in this room is doing the best job you could possibly do and you should celebrate that because the moment you start to believe you're doing the best job you could possibly do you're getting all you can get there's not a man or woman in this room that doesn't need to say hey there's more than I now have more than I now am more than not doing more than I'm now getting second decision I'll study my profession as surely as if I were studying for a master's degree in any other profession I will become a student of the auto industry and on the main stage yesterday we remarked that I was 65 years of age but I have moved with the trends I have studied my profession as surely as if I were studying for a master's degree in any other profession this is what we do and if this is what we do let's be the best there is at what we do and that's something that I tell every audience this story starts out almost every speech be a success I blew into town less than $400 to my name I was a millionaire within 5 years but I started out working in these dealerships doing what you do and I studied my profession part of our profession then we'll be talking about today it's working the deal that's old school there is no old school and new school it's just what is I've seen these two armies in the car business lately we're going to have the techies in the old school guys we're going to fight each other now quit it it all works in harmony it all works together and that's the one thing I have learned knowing both sides of the picture most dealerships today are pitiful with the profitability we're making all automobiles because we have lost in the car business the philosophy that full price is a fair price we've lost the philosophy that our cars are worth the money excuse me our cars are only marked up 6 to 8% furniture and jewelry all over the state are marked up 300% but I have never seen dan Rather and a camera crew invade a jewelry store or furniture store it's always less and they always manage to find the worst of us that was managed to find the worst crookedest card dealer in the world I mean we have integrity this industry has great integrity and I get offended personally when somebody says otherwise when somebody talks about car people I'm the first to defenders we have been upgrading the standard of what we offer the public for the 36 years I've been kicking around everything I talk about today is going to be high integrity you don't need to lie cheat sneak deceive or misrepresent to sell automobiles and make a high profit but currently I'm consulting 98 corporations and owned car dealerships Summum owned one some of them on 30 but the profitability in those dealerships for the most part is north of $3,000 a car front and back I went into a dealership recently in Burton Ohio now let me describe Burton Ohio we're talking serious ass Mayberry right I mean we're talking we're talking an Amish community we're talking we're talking it's on the lake I mean it's just about 40 miles southeast of Cleveland and they got this little dealership that sells General Motors they have a Kia dealership and they have a Ford dealership and collectively two years ago they were selling about 100 cars a month with very small adjustments we've increased that dealership a million dollars annually how's your math is that pretty good but you know what that's not uncommon there are certain philosophies and processes average people with great processes can yield incredible results you don't need Superstars you don't need trim Madonna's matter of fact I fire those people I stopped being a professional salesman a long time ago I am a professional manager and my mindset comes from being a manager Matthew sitting here in the front row can tell you about my roots when I was with Dyer entire though when we went from 40 units a month to 850 units a month in less than a year and a half am i telling a lie I wasn't in charge I was just one of the managers but I was in the game I was part of it so my mind said as a managers mindset and every deal starts with the management every deal starts with all the money you can't do that on the internet because maybe your internet pricing is all the money one thing I've done recently that I just get a kick out of when an internet consumer that we converted to a phone call says is that your best price when you've already given them your pants down internet prices still want your your best price you get any of that the answer is oh absolutely not certainly no no no it's not our best price by any means what there's a much better price available that's the the lowest price we're allowed to discuss on the telephone or legally put in print yeah that's the lowest price you're going to get on the telephone or in print but there certainly is a better price available because if you don't do that you could be doing the limbo you're going to continue to go lower every round correct you know value in the car business one thing I have found out I'm going to talk about the walk in consumer because we are seeing more walk in consumers than ever in history the percentages are moving up not down and the reason that that's every major statistician JD Power who you're looking at they're researching on the internet but they're not contacting you they're showing up how many people have experienced a trend moving in that direction quite a few of us they're just showing up now they've already pre-selected your dealership you got to remember 84 percent of consumers shop first where they want to buy the car 84 percent of consumers that statistic hasn't changed in 30 years when somebody says this is the first place I've shopped that is a very good thing it's that second dealer that generally gets the shaft yeah they either bite the first deal they bite the third deal or nobody buys it the middle dealer I mean it you stole the statistics single digits but the point is I have a philosophy that every deal is it's fair we'd always get all the money but we always go for it 100% of the time and if the internet pricing is what they came in it that is all the money but are you and a dealership sir now what do you sell Toyota now there's a really poor doubt Honda Toyota man you guys just slit each other's throats true if I was to examine the deals that were physically worked in your dealership last month if I was to pull a hundred deal folders and just go through them and look at the worksheets and the F&I sheets and how many of those deals started at all the money not many you know why they started it less than all the money because the deal was contaminated by a salesperson before the manager ever touched the deal true or false guys most deals that are blown or blown because of inappropriate behavior of car salesmen person true did I say they're evil I say their malicious no I just said they screw up deals number one thing screws up deals and this could be you I'm talking to is people are afraid of the money we're afraid of the money if you can't present figures to a consumer with confidence in your facial expression your body language in your voice you cannot win you ever see Robocop remember your little kid Robocop had that eyeball you could see through his eyeball that was kind of cool I mean you had little grids and in it right you could see through Robocop's eyeballs it when Robocop looked at you he went and he made assessments on everything about you consumers do that so write me a check for $5,000 Shh sumbitch really don't expect it they make that decision that quick they're making assessments about you you have to have confidence on the telephone can you have confidence on the telephone can they can they find lack of confidence on the telephone by the way when you're on the phone stand up walk around pace headset both hands-free you have less energy and you you sound less friendly when you were sitting down I make a hundred phone calls a day when I'm in my office I am a one-man BDC I'm telling you the truth and that's 100 contacts I mean I'm getting these people how do you do a hundred contacts that that you have organization folks productivity is born of organization you sharpen your axe before you cut down the tree that makes sense so they people busy chopping you forget to sharpen the axe if that makes sense every deal starts at the desk every deal starts with all the money every deal starts at everything the number one reason we're not able to do that is because your sales person or you personally have overqualified the consumer your fighter how many your sales people show up in your desk in some deals now right you know you're transitioning hey Joe let me tell you why we can't make on this deal let me tell you where they've been what they know who they Kelly Blue Book edmunds.com puke all over your desk right how many says that true how many salespeople what they argue with the manager not to make a profit because they have already committed to the consumer managers are supposed to manage by walking around managers are supposed to be in motion like sharks that never stop swimming managers are supposed to have a quality I call hyper awareness where they're aware of every deal in progress as that deal is happening from handshake the taillights a car deal has a heartbeat it has a rhythm it has a pulse true-false you've got two kinds of salespeople most dealerships track stars and tour guides track stars will be at the desk in 15 minutes trying to work $40,000 car deal tour guide just marches people's ass around to the leaf never gets around to closing the deal you got to gut both the heartbeat of a deal that's management's responsibility management should know how long these people have been involved it's a relationship business and most of your people and so maybe you and is it difficult oh yeah it's difficult in Atlanta Georgia I love you wouldn't believe customers ask salesmen what's your best price no they do most dangerous moment in a car sale what's your best price whatever you do or say next will determine what happens right my best price no problem that's important to you would be business never lost a deal if price is the issue sir our policy at wonderful Toyota is not only to get you the best price our policy is to get you all of the information you need to make an intelligent informed decision our policy is to give you everything the price I will give it all to you price trade monthly payment amount lease payment interest rate what do you want to know I'll give it all to you we're gonna hope nothing back but we do require you select and drive a car before we discuss figures even in internet sales we have to get that consumer to drive because you're dealing people who are solely in their logical mind and to get the customer into their visual and emotional mind you need to get them to experience the car locate deals your best profit locate deals your best profit because the customer never experienced the vehicle Cathy your mom are you mom and how would you youngest 90 who would I wouldn't guess that okay 19 years ago masu you're in the hospital baby wasn't born like the elevator of the taxi cab you made it all the way to the delivery room right and the nurse said you ready to go home you see yeah and a nurse it great let me go down in the nursery and get you a baby or did you want like a specific baby you had one in mind women are like that women bond with their children consumers bond with specific cars the problem with with the internet it's got us sellin generic cars that they have no emotional involvement with them making good sense the quicker you get that customer on a specific unit there might be six blue ones but the only the center one is their baby in their mind and making good sense the driving of the car is when the consumer goes from logical to visual when they go from logical to emotional that's when you start making a profit you've got to have a relationship they don't want to like us they don't want to like you how many times I told a brand-new Greenpeace salesman why did we hire you because we suspected you had a personality but you don't waste any of that on real customers you're too busy selling deals and you're not selling relationship it's not about the deal we're talking deal what's your best price we're over qualifying these people just let me show you how most of your working deals let me show you most of your dealerships now this is the physical dealership we've got full list and we've got cost and there's only about six to eight percent markup between invoice and MSRP on most most cars and the customer comes in and the salesperson or even you says hi welcome to dealership what's your budget tell me some stupid-ass number you made up on the exit ramp tell me a number that has no correlation the car you're looking at tell me number we can fight over and I can blow you out over and a number you're never going to get I've been selling cars 36 years I have set some world records in our industry I have never in 36 years ask a consumer what they wanted to pay that they told me a number that would actually buy the car why am I asking what they want to pay when I know it's going to get a stupid number that won't work stop over qualifying the people on what they want and start qualifying them on what they're able have you ever had a deal that you put in the F and I office you made no money on and then the F and I manager bumped him $50 a month more and you thought you had all the money who's ever had to deal like that any of you why was that I able to bunk the people $50 a month when you thought you had it all they were operating with the facts and the figures they had the customers credit bureau they knew they knew they were credit worthy enough to buy the car and they knew they had income enough to afford it income and credit worthiness are the only two real qualifiers as to whether they're on the right car not what they want to pay is immaterial every consumer shopping you on the phone on the internet in person they've got two figures what we're going to tell the salesperson and the if we had to figure and you're never going to hear the if we had to figure right so you say well what's your budget you've only got six to eight percent from top to bottom and they said it's a $30,000 car and that consumer says I need three hundred a month and what you do then is you we're going to bump them you bump them two or three times make no money because you made them tell you a stupid number I want myself say sir we have mr. James Ziegler on the desk today a guest manager from Atlanta Georgia when you see his numbers you're going to be excited you'll be jumping up and down usually they look at my numbers and I get the whistling good dams they just go dam which seems to be the problem always go for all the money don't don't don't get the impression that all the money is cheating anybody there's not enough profit in a car deal to cheat anybody and we have to think of our way to think differently well show me your invoice show me your spouse is under excuse me if they ever hung the first person has showed a consumer our invoice I personally would kick the chair out I would participate in that lynching because it's bad business because I'm going to open up that deal at 600 which is the right number it's not I'm not shocking these people but I'm hitting them at the right number and we're going to work down well the consumer blurted it out I need $300 a month what does your salesperson do knowing a thirty thousand dollar car won't sell for three hundred month what's your sales person usually say next well or they say we need a cheaper car and they start negotiating on the parking lot I keep sales people write them don't fight them get the consumer on paper if I get a consumer or get them into the CRM system I get a consumer in the showroom I generally at least get it right up deals are blown outside they're not blown inside and managers need to touch every customer often and early and never meet the customer the first time when you're in combat as the customer says what do you think I am an idiot well sir if you worry did not want to miss an opportunity that was that was humor that was me joking okay some of you I saw actually write that down done that was humor okay so what I want my salesmen to do is to come to the management to get first set of figures management starts the deal now what I found is you got brand new salespeople that are not yet fully trained and I don't know when I got into business couple years ago they put me in a room with a bunch of Jackie B Cooper beta tapes and told me don't come out to your fully trained you know most car dealerships today do that we don't retrain our salespeople we train them one time when we first hire them and we never get back to training them again is this what one training is supposed to last a lifetime I've had to retrain myself continually because this business is evolving and changing have to learn new things and then you got the old car dogs I mean you got the old car dogs they're set in their ways and resisting change they don't want change anybody have any any of that scenario happening you're you're the old car dogs don't want change and some of you techies disrespect the car dogs too I mean let's let's put it on both both ends of the spectrum I've been trying to get these two opposing armies together forever because we need each other and the old car dogs I see a young sales manager look I want you to say this say that but if they do this you do that and if they do this you do that but if they do this you say that if they say that you say that got it you said we need a cheaper car that's that that's that salesman's whole interpretation of all that brilliant he told them to say we need a cheaper car they're not listening to you said they have their own idea matter of fact they've probably already committed to the customer what they can get you to do true or false there's a lot of salesperson ship it's process person ship socially-acceptable just a person ship going on here but it's all being aimed at the manager it's not being aimed at the consumer and does anybody here work with a market that has customers that are credit challenged where yeah where are you Gainesville Texas obey you got some credit challenges there right we call these people derogatory names I mean bugs Drex roaches credit criminals get me Duns we don't do that anymore we are so socially PC credit challenged equity impaired we are so nice well I used to call these people bugs I'll be honest bugs derivative word bogus credit bear Machine BOGO meter you know there's hope vocabulary went with a head oh I'm smelling some bogus asipi here this guy's pegging the needle on my bow gama tur you know there's a whole vocabulary went with that the bugs know who they are that's one thing you got to remember about people bad credit stop apologizing to because they got bad credit they know who they are they've received mail about it 63% of consumers have a credit score under 663 percent of consumers have bad credit and like I say they know who they are and we're in the entitlement generation look sir I appreciate you got yourself in some credit problems and I'm trying to help you but lose that attitude I personally didn't buy all that you didn't pay for those who wrote that down that was not a word track either that wasn't it that was humor but the point is full price is fair I couldn't get the brand new hires to do it I couldn't get the old car guys and women to do it so a couple years ago I scripted out the worksheet this was my finest hour of anything I've done when I scripted out the worksheet and we got this program you have my permission to program this forum into your CRM I release the copyright to you you've got my permission to use this form this form is one of the most high profit making worksheets you will ever see in the car business and like I say you've got my full permission to use it just give me credit for don't don't say you invented it but if you give me credit for it you've got my permission to use it first of all the upscale intelligent consumer likes this it looks like it wasn't something you just threw together for them it doesn't look like like we're going to draw four big squares that's pretty trustworthy no it's not a Foursquare but it works similar you've got all the script written out the salesperson says mr. customer let me go to my manager get us a proposal the salesperson comes up to the sales desk where I am step number one I'm going to audit the worksheet I'm gonna be sure they got all the information takes to do a deal I was in a Nissan dealership in Shreveport Louisiana not long ago I had desk a $7,800 front and back deal on a Nissan program Altima we take those wouldn't we and we get the papers we get the work sheet signed father and a daughter and the salesperson goes into slow motion stupid mode when you get a deal do you have sales people go into the slow motion stupid I got to go get some numbers off the car I have to go get another for 30 minutes later these people are not in the F&I office and dad's saying we might be moving a little too fast here no you're not no you're not and I held that deal together but one thing I'm trying to achieve in car dealerships and we got we got a customer commit to a deal I need to have enough information have that deal in the F&I office in less than 10 minutes not sitting on the couch hoping to get in the fni office I want them in the F&I office in less than 10 minutes the shot clock is running the F&I offices the basket does that make good sense I want them in there so step number one audit the worksheet or if it's in the CRM system be sure they got all the information in the CRM system step number two ask the salesperson questions all the decision-makers here these people have time to do business did they drive the exact car they're buying is their trade-in present I need to know that my salesman knows step number three I'm going to put the numbers on the worksheet I'm going to give the salesman the number sales and do not bring me the numbers I'm sorry salespeople are not emotionally equipped to handle their own deals there has to be a coach that sends in the place and the outside even me I if I'm working the deal I need somebody to pencil the figures step number four rehearse the salesman makes the salesperson say back to you what you're gonna say to the customer tell me what you tell the customer exact words that you're going to tell them step number six or five whatever it is I'm going to get up off the desk and go listen to them saying because they don't always say what you tell them to say but when they look up and see me the managers standing there they're going to do it so the salesman comes up to the sales desk and I ask questions and hopefully they haven't messed up the deal too badly I got a B C D and E a is the price $32,000 car $2,000 value package $3,000 rebate $29,000 adjusted I'll explain that in a minute I got a trade-in coming at 16 111 217 456 pay off on that trade in a 16,000 down payment 58 91 I don't care if it's an Internet department the traditional sales department no matter how you do business down payment is the key to profitability and you're bad at it average dealership in this country is getting less than two hundred and fifty dollars true cash for finance deal average dealership I'm working with us above two thousand per finance deal cash per finance deal is the key to being profitable the consumer can attack you everywhere I mean we are we are so weak I mean I cannot believe people say we take advantage of consumers you know how much information they come in with we are totally disarmed but the one figure that that consumer is not privileged to the one figure that I have the advantage is the down payment so I put the figures on the worksheet I rehearse the salesman say back to me what you're going to save the customer and my salesmen says to the customer mr. customer the market value of the vehicle you're purchasing is $32,000 Lou the psychology of that statement the market value of what the vehicle you are purchasing we're so afraid to tell these people they're buying a car we just hope we sneak up on they give up now the market value of the vehicle you're purchasing is 32,000 that includes a $2,000 valued discount package from Ford Motor Company Ford General Motors Nissan Toyota Chrysler they all have value discount packages some of them some of them like on your armadas 4,000 dollar value discount package right on the window sticker and nobody ever mentioned it to the consumer we've got a four thousand dollar factory discount I want my salesmen do a little happy dance sir this is a special promotional unit for Toyota it's been discounted $2,500 you got one of the promo units it's got a factory did I want them to do a little excited dance on the they're not doing it so I put it running the worksheet so that would be 34,000 that we not discounted then we have a three thousand dollar cash back rebate now you've known me for a long time did you did you know I was a rap artist I am the greatest white boy rapper since vanilla ice invented rap now you're not going to get the low rate you're gonna take the rebate okay I'll stick to whatever other profession I have yeah was that pretty pitiful yeah you're not going to get the low rate you're going to take the rebate stop putting these people in 0% if the rebates the other option if it's a rebate or a 0.19 or they're not going to get the low rate we're going to put them on the rebate we need the Rebate in the deal to make profitability with a high percentage of people are upside down and have damaged credit the rebate works in every bill it works for us it works for them we do not do the low rate we do the rebate and by the way if that customer comes in retail I don't want that salesman to convert that customer to a lease without my permission we might lease them but don't you convert them to a lease if they think they're buying a car retail now sir that gives us adjusted sale price of 29,000 our professional buyers have looked at your car and we're willing to buy your car as part of this deal somewhere between 16 1 11 17 4 56 that's based on the most in the least that cars like yours have been bought and sold for in this market not based on a book not based on a Los Angeles California website it's based not based on my managers opinion or an auction it's based on the high and the low the cars like yours the backs have been bought and sold for will be paying off your old car up to 16,000 your old car that when you came in in now mr. customer I'm sure I'm sure you're aware now listen this word tracking I'm sure you're aware the banks in this market including Ford credit would like to see as much as 20% cash down payment for preferred and premium financial programs so we'd like to get a check from you today for fifty eight hundred ninety one dollars the secret to profitability is getting the down payment and the secret to getting the down payment is never ask a customer how much they have never asked a consumer how much we think about putting down the answer is always going to be nothing my trade no mr. customer as you know when I say as you know does that imply you're supposed to know whatever I'm about to say if you appear you don't know what you appear to be a dumbass right as you know I know it whatever it is okay so sir as you know different people qualify for different financial programs is that a true or false statement true it depends on your personal credit and amount of your down payment the amount of your down payment sir most banks would like to see 20% now for preferred and premium answer programs we need to say that with confidence and not be afraid of that number and by the way that's the first time the consumer has even been mentioned down payment when it shows up on the worksheet the banks would like to see I didn't say the banks required the banks would like to see 20% down for preferred and premium financial programs I don't care if you bring a customer in what percentage of consumers don't buy the car they thought they're going to buy it before they left the house 70 or 80 percent of consumers switched switch cars right don't worry about what you told them on the internet they're going to probably switch themselves not us switch them they're going to switch themselves I had nine Escalade since 2000 now I decided a couple months ago to get something else I had seven Corvettes and nine Escalades I'm still in my Corvettes but I decided to get something other than an Escalade and I do have some contracts with General Motors we go to the General Motors dealer and I have already researched on the Internet I am going to buy an Acadia Denali GMC I'm going to get a GMC Denali Acadia today I'm the proud owner of a Buick Enclave I switch myself and I'm a hardened car guy these people aren't locked in till you lock them in and we lock them in so much to a specific unit then your settlement would get you exactly what you want says you tell them that man you have blown the deal sir the banks would like to see 20% down for preferred and premium financial program so we'd like to get a check from you 458 91 and you might get a reaction from a consumer on that down payment they're not going to throw a chair at you they're not going to get angry at you because nobody has talked down payment till this moment first they've heard of it but now you knew I was a rap artist did you know I was a mind reader watch and that'll give us a price of twenty nine thousand twenty nine thousand I'm not paying twenty nine thousand that's a consumer thinking and we'd like to buy your trade somewhere between sixteen one eleven seventeen 456 seventeen 456 I'm not taking that from my trade I'm not taking 17 456 my trade and I'm not paying 29,000 for her car and we'd like to get down payment check for fifty eight ninety one twenty nine thousand I'm not paying twenty nine thousand seventeen for I'm not taking that for my trade fifty-eight hundred son of a bitch by the time that fifty eight ninety one shows up are they thinking about anything but that down payment is the only one area that the consumer has to justify themselves they make us justify the price the trade the payment where's the cash down payment well I can't pay 621 what a ninety nine percent the sales and say very next words out of their mouth okay you pay you're right sir these numbers are mattress jerking around will he really play now with their second our salespeople go for the counteroffer in 10 seconds and you wonder why you're not holding profitability you're going for the counteroffer so fast you can't make a profit your salesmen say sir that's a very normal payment today's market most of these little Honda fits are going for that very very normal payment now sir that is an accelerated equity situation I don't care what they know here's one of my best word tricks sir well I didn't have a down payment five years ago sir five years ago was a different economic America the banks today operating with federal bailout assistance money want to see an equity position going in I've got a word track as that isn't it awesome the banks today operating with federal bailout assistance would like to see an advanced equity position going in the whole landscape has changed I haven't got that kind of down payment now here's the best listen this word track due out what this customer would be upset no I want to get their attention I've got their attention that could now I'm going to just come right down watch this I can't pay fifty eight ninety-one down payment sir the banks do not require twenty percent down ideally that's what they would like to see for the best financial situations but they don't require twenty percent down now listen to my next words I can certainly get you financed with less down payment how strong was that word track I can certainly get you financed with less down payment as opposed to no down payment every dealership that we are doing the big numbers we're getting the big down payments and the way we're getting the big down payments is not by not asking to consumer what they want to put down we're telling them what they need and it's the worksheet is when that is being introduced for the first time your down payment they need to think about that upwards of ninety percent nationally of consumers depending whether using JD Power and AD a or C and W research statistics doesn't matter whose statistics you're using ninety percent of consumers or more number one have already made brand decision number two are buying based on the monthly payment amount and only the monthly payment amount they don't really care what the price is I mean we we are we are so price point conscious they really don't care the only reason they think they've got to negotiate on the price and the trades they get a better financial situation that's the majority of consumers that payment down payments what matters to them and we go through all this negotiation and then we have to renegotiate the finance let's start out with it well sir I'm authorized to offer you 60 months and that would lower your payment at least $30 a month what fair reasonable number did you have in mind only after I've defended that payment for a little while do I say sir what fair and reasonable Matt did you have in mind now as a manager I'm all saved the consumer sir I'm Jim Ziegler I'm the general sales manager here and is my salesperson doing a good job she's one of our very best you know I'm the guy with all the different color pens and it appears it's starting to go back and forth I don't want to do that using myself as a messenger to you would you mind if I just sat down and finished the deal in one sitting you heard that word track would you mind if I just sat down and finished the deal that is when the strongest tío word tracks in the world would you mind terribly if I just sat down and finished the deal and if a consumer says yes that's the best deal in the world would you mind you ever ever sales and say look I want your best price what's your best price right now I don't want that back-and-forth crap to you and a manager you everybody ever heard that before I don't have back-and-forth crap between you and the manager you ever heard that before well sir are you paying full sticker price for this car well that you just created some back and forth grandpa I was happy with the first number I sent you you sent my guy back who started all that consumers accused us I started all that back and forth crap and everything I've never seen what we started it they're the one always sending my salesmen back for another number no matter what number you send in - right you can't go low enough for that consumer not to send a salesman back so so don't ever think we're starting all that you know we don't so the consumer says I can pay 450 now you got to give them the look 450 you got it sir if you had to if it was necessary could you go as high as 500 if you had to this called if you had to bump if you had to could you go as high as 500 sir I'm pretty confident you're going to have to good write it down now this is where we lose most of our deals serve my if the management will accept that we could you can own this car and said buy it own it for 500 dollars a month you don't it right now well go see if your manager will do it no sir it's your number well I'm not taking that from my trade sir I'm sure that if we're able to get down as low as $500 a month these figures of change is $500 a month important to you yes if we construct these figures any way shape or form to get down as low as $500 a month will you own the car let's keep them in one place okay if you can get down to 500 a month I'll own the car great write me that check for 58 91 that number there is the most important number in the worksheet that downpayment is the most important figure whether it's cash or lease or find it I went in to Oklahoma City Oklahoma mark heights Chevrolet one I think to the 10th largest Chevrolet dealer in the country they work deals 100 percent trade difference they don't want any payments on the sales floor they sell I don't know 500 units of mother I've got 400 I don't know a lot and I was a letter on my website that says mr. Ziegler made one visit to our dealership and our gross per fighter for retail deal went up nine hundred and thirteen dollars on five hundred units nine hundred and thirteen per deal on five hundred sales house you met that pretty good you know the only thing I did differently another work is straight trade different straight figures only thing I did differently as I started penciling the down payment on the worksheet if you're financing with us I was putting the downpayment on the worksheet even on a trade difference deal and the down payment got to be the focus of the negotiation because right now most of us are negotiating the price we're negotiating the trade were negotiating the payment but we're not making the consumer negotiate the down payment which is the only area where we have any leverage at all and to do that start start him out with 20% down because and I say mr. Custer the bank's ideally would like to see 20% down payment that's what they advertise in the paper when they put an example set of figures in the paper in one of their ads they use 20% in every banks example ads that's what they would like to see I cancer track again I can certainly get you financed with less money down now you're familiar with a dealership probably not too far from me the Millennium group and others they have what ten people in a seminar you attended with me in New Jersey probably ten people there grocers went up astronomic that's what the biggest dealer groups in New York Dana Ford in Staten Island I started working with Dana Ford in Staten Island three years ago they they were way down there I don't know 40 or 50 out of all the tri-state now they are number one in the tri-state for Ford New York New Jersey what's the other one Connecticut yeah New York New Jersey and Connecticut they're now the number one Ford dealer at $3,500 a unit on upwards of 400 units in New York and once again I don't know if you ever been to New York that could be some pretty tough customers seriously I work at central avenue chrysler up in Oh welcome to Central Avenue glad you you glad I'm here we think it's a guess though that attitude in a salute that is the key to working the deal any what questions do we have for me what discussions do we have anything in anything god I hate it when it speakers it don't allow any time for we got about six seven minutes here yes sir what do you laughing on what the cell says so write me that check okay the salesman says I haven't got fifty eight ninety one let me take this deal a little farther yeah that's a good question okay well sir how okay I never say how much money do you have I haven't got fifty eight ninety one okay how close to that can you come up with the banks don't require twenty percent I can certainly get you financed for less money down ideally the banks would like to see twenty percent how close to fifty eight ninety one can you come up with and the consumer says well I got a thousand dollars I make that face thousand dollars I had a manager used to whistle at him his name was Jim Baron he go thousand dollars and people he assault me that's empowered sir if you had to Chico's highest fifteen hundred well if I had to sir I'm pretty confident going to have to and to answer your question so write me that check for fifteen hundred well if for any reason we don't do business we're certainly take your fifteen hundred dollar check you can't get in a real estate agents car without showing them when you have the money right me that chip we have gotten so afraid of the money as an industry don't write me that check for fifteen hundred I have sales not longer he takes my figures into the customer sir I'm sorry you see the fat bald guy with the baseball hat he's a consultant from Atlanta can you come back Thursday yeah can you come back Thursday dance you a question adequately yes questions discussions yeah Joe I'm fine you know customers are like so much into like 60 months well you're going back to my New Jersey seminar right I'll show it to you okay the sesemann brings me those figures I put on the back of the worksheet okay at 68 months now what did it close that for for 500 of you 511 to 521 let's move them up a little bit so I think they won with what do you have down 1517 81 63 cents you notice none of my numbers ever end of zeros 25 to 50 s when used when all your numbers conveniently end in zeros 25 50 that customer knows you're you're playing a game I put 61 cents on the back of my figures 42 cents I mean they end in weird numbers and a consumer but what's so weird 68 months what you've got to understand every month additional the customer pays 80 percent of that is frontside profit if you close the customer 68 months at $500 as opposed to 60 months still at five hundred four thousand dollars additional money went in that deal 80% of that is frontside gross he picked up $3,200 front side groceries you picked up eight payments start thinking a payment at a time well sir let's see if we can do it I got you at 60 months at 300 I can't pay that or I can't do that sir what if I could get you at sixty two months at 300 oh I'd do that two months at 300 put $600 additional money in the DL 80% of that's 400 my cells have made $100 Commission just for the bump you follow I'm saying start thinking a payment at a time let's see if I can do 61 months let me see if I can do 62 let me see if I can do 63 don't you know to bump the customer all the way to 72 months from 60 months you make a lot of money with 61 62 63 see the banks do not only finance even months terms they will finance anything the rate sheet says up to 60 months up to 66 months up to 76 months 72 months it doesn't say you have to go exactly 72 you go 71 70 68 69 yes well you know that that that concept came around with befores plan back in the 80s actually you know we're going to lease this customer every two years it didn't work because what we know today is that consumers are shopping you at the end of every trade cycle no matter what you've got them locked into a 60 month loan is only upside-down for four years you know it's only upside-down for four years if you didn't advance a lot of egg negative equity into it you know if it's just even if it's a break-even deal this is the point that answer your question where me as a manager I'm gonna make a decision and I do many times put or lease 35 months at 401 to for 11 with 812 dollars cash I want to make a determination I don't want my salesmen converting the customer to a lease that's because we got sales people get to be lease fanatics and they're trying to sell the customer the method of payment before they close the car that customer came in on a lease we're going to work the deals the lease but that customer came in thinking retail I'm going to keep the deal retail because when I do convert it to at least I can convert it to a higher profit lease against the higher profit retail figures now I'm making good sense this is the point where I convert the customer to a lease and that's a manager's decision in my world I didn't say we're not going to lease I just said I'm gonna wait to see where I'm at retail before I make that decision because frankly I might have enough profit maybe I don't care if I see it for eight years because you know where am I at in this deal at this point is that a 36-month lease oh you just callin 35 yeah yeah I did it on purpose yeah and you know we're absorbing the first first payment and I put about half of the cash on the lease that I was asking for in a retailer if I want to steer the customer to a lease if I want to steer the customer to a lease if that's my plan I'll put half the cash on there on the lease that I had on the retail deal now I can take that deal all the way up to MSRP even if I had negotiated way down on the the retail side and the reason I can legally do that is because I had not at any time negotiated those numbers the moment you negotiate and scratch through anything on this side you cannot take the lease back up and profit by making good sense but as long as I haven't scratched anything out there we're only working on financial terms I can come back with a hundred and ten percent cap lease on an invoice retail deal as long as that has not been discussed questions yes go back to when those appropriate to the first tee on a deal whenever my salesman is in trouble you know most of the TOS in dealerships most of a tee oh and enter customer introduction area manager okay what you do okay that's good are you manager okay I'm very good but you can desk a deal sure yeah what's your name daddy I can remember that name yeah yeah most of the TOS in your dealership hi Debbie as mr. miss Jackie's we'll say goodbye to them for they leave is that 90% of your TOS selves as you will say goodbye these people before they leave no like say hello to so they stay but but you've already given them a brochure with a business card stapled to it the deluxe Getaway Package I guess I'm very good talk to you every dealership I go to there some idiots sitting there I'm making b-back packages I intend to blow out not many people a business card stapled to a brochure how weak is that and it's weak management they watches them do it come up to my sales desk mr. Ziegler I need a brochure my god we out of cars again we had real ones after a minute ago you're gonna show a picture what do you let we like to be the desk deals in your store one day folks I'll take one more questions discussions thank you for having me I appreciate you
