CAR BIZ INSIDER FEATURING TODD BENNETT EP #3 – CHATHAM HONDA – Automotive Podcast
Todd is currently the GM / Operating Partner, and he brings tons of experience in automotive retail as well as consulting. Under Todd’s leadership, Chatham Honda experienced tremendous results.
https://www.torontoautoconsulting.com/
We will be live-streaming on YouTube, Facebook, Twitter, and LinkedIn
#automotive #managementconsultant #usedcars #sales #vAuto #AutoAlert #SEO #dealershipManagement #variableoperations #fixedoperation #opentoconnect #automotiveindustry, #managementconsulting #profitabilityimprovement #honda
Transcript
00:00:29 Jon Toker
Hi everybody, this is your host Jon Toker from Car Biz Insider.
00:00:33 Jon Toker
I have another great guest here with me today from Chatham Honda Todd Bennett Todd how are you doing today?
00:00:40 Todd Bennett
Good John, good, thanks for having me on.
00:00:42 Jon Toker
No problem, it’s a pleasure, you know.
00:00:44 Jon Toker
So you’re someone that I I respect a lot because.
00:00:47 Jon Toker
Uh, I’m kind of like following your footsteps in terms of this consulting business because you were a consultant in the past too, so I’m sure you’re going.
00:00:55 Jon Toker
To talk about it.
00:00:56 Jon Toker
But you know, I I always respect you a lot so I really appreciate you making up this time and come here today because you know you’re just closing the month end probably and you have a lot of work.
00:01:07 Jon Toker
To do so, thank you for being on the show, Todd.
00:01:10 Todd Bennett
Oh no, again, thanks for having me.
00:01:12 Jon Toker
No problem so.
00:01:12 Todd Bennett
You know, I I feel the same way about you.
00:01:15 Todd Bennett
I mean you, you know obviously.
00:01:16 Todd Bennett
I see.
00:01:17 Todd Bennett
Are consultant for.
00:01:19 Todd Bennett
About three years and you really helped us?
00:01:20 Todd Bennett
Out and you know, I.
00:01:23 Todd Bennett
I look up to you as well.
00:01:24 Todd Bennett
Well but yeah.
00:01:27 Todd Bennett
Yeah again, thanks for having me on.
00:01:28 Todd Bennett
It’s my first time.
00:01:29 Jon Toker
No problem Todd.
00:01:30 Todd Bennett
Right?
00:01:31 Jon Toker
First first, first podcast ever.
00:01:33 Todd Bennett
First podcast ever I listened.
00:01:35 Todd Bennett
To a lot of yeah.
00:01:36 Jon Toker
So why don’t you introduce yourself to the viewers, because I’m sure there’s some people know you.
00:01:41 Jon Toker
Some people don’t, so let’s talk about who’s Todd Bennett.
00:01:44 Jon Toker
What does she do?
00:01:45 Jon Toker
Maybe talk about some you know, mountain biking and.
00:01:47
Stuff and all those goodies.
00:01:50 Todd Bennett
Yeah, well I started in the business 1996 in a Ford store in a town that I grew up in.
00:01:58 Todd Bennett
Selling and you know.
00:02:01 Todd Bennett
Kind of worked my way up and worked at some different brands.
00:02:04 Todd Bennett
You mentioned they did some consulting I.
00:02:09 Todd Bennett
I’m a certified Hubbard sales trainer with you know Peter Hubbard and Shane bolster.
00:02:17 Todd Bennett
Again, another guy that I I look up to help me out a lot in my career, but.
00:02:23 Todd Bennett
Then I got.
00:02:23 Todd Bennett
Hired here in about 2014 as the general manager of the store and at that time it’s called Honda House and.
00:02:31 Todd Bennett
Recently it was.
00:02:32 Todd Bennett
To bought out by the Roadsport Auto group.
00:02:38 Todd Bennett
And like I said, September.
00:02:40 Todd Bennett
So now we’re Chatham Honda and it’s been exciting.
00:02:43 Todd Bennett
I’m the general manager and partner, so it’s it’s been a it’s almost like working at A at the store for the first time since since we’ve taken over, it’s it’s a new place and it’s it’s been exciting.
00:02:58 Jon Toker
So basically Roadsport Honda is owned by Chris, Gauthier and his wife is running the store, and they’re very successful operators.
00:03:07 Jon Toker
Honda operators right?
00:03:08 Jon Toker
For a long time so and chat, Amanda has been a very successful operation for like it’s one of the oldest Honda stores.
00:03:17 Jon Toker
In the in the in the country because you know your dealer code is 6702, so it’s.
00:03:22 Jon Toker
Like one of the first ones, right?
00:03:24 Todd Bennett
It’s not, it’s it’s not as relevant as a.
00:03:27 Todd Bennett
Roadsport Honda most sport Honda.
00:03:29 Todd Bennett
I think is in is over 50 years.
00:03:31 Jon Toker
They’re one of the original, so the first one I think was doubts Honda down somewhere in North York, I think.
00:03:36 Jon Toker
Then roadsport and like these are the original Honda dealerships in Ontario in Canada and like you know I was very excited to work with you guys.
00:03:46 Jon Toker
That was the one of the reasons because I used to come visit your store and that goes like amazing because you know lots of experience and previous owner John Elliott was a a great gentleman.
00:03:56 Jon Toker
You know, sit down, talk to him.
00:03:57 Jon Toker
Him and it was a good experience talking to you guys and to transition now like you guys even gotta get stronger now because I believe lots of experience.
00:04:05 Jon Toker
Lots of knowledge going on and.
00:04:07 Todd Bennett
Yeah, let’s let’s board Honda would support Auto Auto Group has brought a lot of.
00:04:07 Jon Toker
Right?
00:04:15 Speaker 3
Experience but.
00:04:16 Todd Bennett
Yeah, there’s a lot.
00:04:18 Todd Bennett
Of things they bring.
00:04:19 Todd Bennett
To the table we have, you know, a dedicated fixed operations consultant.
00:04:23 Todd Bennett
We have a full HR department.
00:04:26 Todd Bennett
Chris Gucci is his, you know.
00:04:30 Todd Bennett
Always looked up to him, he’s he’s.
00:04:34 Todd Bennett
Getting so wealth of knowledge I I mean.
00:04:36 Todd Bennett
If I ever.
00:04:37 Todd Bennett
Need help or you know he seems to.
00:04:40 Todd Bennett
Kind of already be ahead of.
00:04:41 Todd Bennett
The curve and.
00:04:42 Todd Bennett
It’s it’s a.
00:04:44 Todd Bennett
This store has a lot.
00:04:44 Todd Bennett
Of potential to to get.
00:04:46 Todd Bennett
To that next level and and I very we’re definitely gonna get there now for sure.
00:04:53 Jon Toker
Yes, yeah, there’s no doubt about it man.
00:04:56 Jon Toker
You guys have a very good teams you got you got Chris Terlouw there have very good seniors you’re going on and.
00:05:01 Todd Bennett
Yes, yes.
00:05:01 Jon Toker
That was always a pleasure, you know, so.
00:05:04 Todd Bennett
Yeah, I mean I’ve been. I’ve been in the auto industry for 26 years, but I worked with.
00:05:10 Todd Bennett
Chris Degraw 20 years ago at a Nissan store in London so you know our our our kind of past circled around and you know he’s a great GSM a good.
00:05:21 Todd Bennett
Leader here as well.
00:05:23 Todd Bennett
You know?
00:05:24 Jon Toker
Well, uh, I got I prepare some questions for you because I think you got a really good start to talk about it and what I mean by is like.
00:05:31 Jon Toker
So your store was one of the.
00:05:34 Jon Toker
Actually it was the last physical dealer visit I have conducted.
00:05:38 Jon Toker
Before the COVID kicked in, yeah.
00:05:38 Todd Bennett
Oh, really, I didn’t want.
00:05:40 Todd Bennett
To let you know that.
00:05:41 Jon Toker
So so the last.
00:05:42 Jon Toker
Visit I came to your store.
00:05:44 Jon Toker
Yeah I did that.
00:05:44 Jon Toker
You know my typical monthly visits and uh?
00:05:47 Jon Toker
Stop by and we’re talking about Chris Degre about this new virus coming out called COVID.
00:05:52 Jon Toker
And we’re like saying, oh, this is just going to be like cold, you know, not a big deal like it’s going to be fine and we don’t have to worry about it.
00:05:59 Jon Toker
And we’re talking about it.
00:06:01 Jon Toker
And then I came home.
00:06:03 Jon Toker
I was ready to go to Ottawa next week to do my Ottawa visits and I got a.
00:06:08 Jon Toker
Email saying that everything is cancelled.
00:06:10 Jon Toker
Stay at home, wait for the instructions I’m like.
00:06:13 Jon Toker
That’s not good.
00:06:15 Jon Toker
And then.
00:06:17 Jon Toker
We start doing our virtual contacts and at 2022 the beginning was basically like I would call a very uncertain times.
00:06:26 Jon Toker
And then omvic jumps in and said you can’t accept customers unless there is a appointment going on.
00:06:32 Jon Toker
And then how do you generate appointments without having customers?
00:06:37 Jon Toker
Because like in the past what we do was.
00:06:40 Jon Toker
Saturday customers come in right 20 customers.
00:06:44 Jon Toker
We do our test drives and all that stuff with the people that we couldn’t sell.
00:06:48 Jon Toker
We follow up and to book the appointment for the following week.
00:06:51 Jon Toker
That was our appointment understanding pretty much.
00:06:53 Jon Toker
I mean, we did the events in the database mining, but that wasn’t the a primary business setup, right?
00:07:00 Jon Toker
But the thing was, you guys did amazing. Actually, your numbers like can you basically, and that was my question was how did you handle COVID-19 restrictions and how did it affect your sales, could you?
00:07:13 Jon Toker
Tell us about that a little bit.
00:07:14 Todd Bennett
You know, I, I think like.
00:07:16 Todd Bennett
Every every store out there when it happened, it’s everything was reactive at first, uh.
00:07:21 Todd Bennett
Matter of fact.
00:07:22 Todd Bennett
I think we.
00:07:24 Todd Bennett
I don’t know about Canada, but definitely the first store in Ontario took clothes before we were.
00:07:29 Todd Bennett
Mandated at close.
00:07:30 Todd Bennett
It was only about a week that that was the case, but some other stores in in the in the city were closing up and I thought, you know, thinking about all the expenses.
00:07:43 Todd Bennett
If nobody is going to come in.
00:07:44 Todd Bennett
Because of the.
00:07:44 Todd Bennett
Virus, why pay a bunch of?
00:07:46 Todd Bennett
People to be here when.
00:07:47 Todd Bennett
We you know.
00:07:49 Todd Bennett
And keep the lights on and heat the place you know so.
00:07:52 Speaker 3
You know not.
00:07:53 Todd Bennett
At the time I, I, you know, I go home every night wondering if that was or be home every day wondering if if that was the right decision, but you know?
00:08:01 Speaker 3
There’s a lot of things that.
00:08:03 Todd Bennett
We did that.
00:08:05 Todd Bennett
Uhm, to kind of like.
00:08:08 Todd Bennett
Proactively try to get people to.
00:08:10 Todd Bennett
Buy cars like I don’t want to remember.
00:08:12 Todd Bennett
But you know it was.
00:08:13 Todd Bennett
Almost like.
00:08:14 Todd Bennett
Taboo if you were to call somebody and invite him in the store when this thing was going on.
00:08:18 Todd Bennett
So you have to be kind of careful on how you how you would reach out to some people.
00:08:22 Todd Bennett
But the business.
00:08:23 Todd Bennett
Change itself like we found that like.
00:08:25 Todd Bennett
When we get a lead or or.
00:08:27 Todd Bennett
Or someone would call in to do as.
00:08:29 Todd Bennett
Such I guess we you know in the.
00:08:31 Todd Bennett
Business we call it a qualified lead.
00:08:33 Todd Bennett
Where you know?
00:08:34 Todd Bennett
The person would come in and and and also we’ve seen the closing ratios on these customers very high, right?
00:08:40 Todd Bennett
It was a lot less work with people and.
00:08:44 Todd Bennett
You know?
00:08:45 Todd Bennett
The buying experience is almost better because the customer.
00:08:48 Todd Bennett
Knew what they?
00:08:48 Todd Bennett
Wanted they knew what they were going to pay.
00:08:51 Todd Bennett
You know the the negotiations that add the stress and the discomfort for the buyer and and and the seller seemed to dissipate.
00:09:02 Todd Bennett
You know we found our customer satisfaction scores going up.
00:09:05 Todd Bennett
And stuff like that, but.
00:09:07 Todd Bennett
You know we started to.
00:09:08 Todd Bennett
But in the beginning we would reach out to people through our database.
00:09:13 Todd Bennett
And send him an email or mail or.
00:09:15 Todd Bennett
Kind of encouraging them to that we can do.
00:09:18 Todd Bennett
A lot of this without them coming in.
00:09:20 Todd Bennett
And you know, I think I’m definitely not alone in this.
00:09:24 Todd Bennett
It’s not like I try to reinvent.
00:09:26 Todd Bennett
The wheel or anything but.
00:09:28 Todd Bennett
We just we decided to go, you know, sort of full blast.
00:09:32 Todd Bennett
Right and and at that time we had inventory and it it worked out, so it wasn’t really much magic there, John.
00:09:42 Jon Toker
So like when we look at your numbers though, like.
00:09:45 Jon Toker
How would you comment on like 2020 numbers because everybody thought you know this is not really this is not going to end well and some dealers lost a lot of business compared to year over year numbers but.
00:09:58 Jon Toker
How was your numbers where she’s 19 to 20?
00:10:03 Todd Bennett
You know it.
00:10:04 Speaker 3
Wasn’t as good as it was in.
00:10:05 Todd Bennett
21 but.
00:10:08 Todd Bennett
Yeah, we had a great back.
00:10:09 Todd Bennett
Half of the year, and it’s hard to speak for dealers that.
00:10:14 Todd Bennett
That lost their shirts and stuff, ’cause maybe they didn’t try to adapt.
00:10:18 Todd Bennett
You know, we, you know, we definitely try to have software.
00:10:22 Todd Bennett
Our system where someone could actually buy a car from front to start, remind you there was nobody that actually logged in.
00:10:30 Todd Bennett
And but you know.
00:10:32 Todd Bennett
Work right?
00:10:33 Jon Toker
Everybody bought a car online right start.
00:10:33 Todd Bennett
Well no gentleman started she.
00:10:34 Jon Toker
To finish like never seen it.
00:10:36 Speaker 3
Did some people.
00:10:37 Todd Bennett
Get their car, their trade loaded up.
00:10:40 Todd Bennett
But you know they still wanted they.
00:10:41 Todd Bennett
Still wanted help they.
00:10:45 Jon Toker
Yeah I, I remember you guys.
00:10:45 Todd Bennett
Don’t, I don’t think.
00:10:47 Speaker 3
Sorry, go ahead.
00:10:47 Jon Toker
On your website you guys had that tool and like people can go and complete the purchase completely online.
00:10:53 Jon Toker
And but like I don’t think you guys ever sold start to finish because the consumer doesn’t want that like they still want to come and talk to you somehow.
00:11:02 Jon Toker
Some part of the process even though you had a.
00:11:04 Jon Toker
Really good streamline process and.
00:11:08 Jon Toker
But I think you’re I think what?
00:11:09 Jon Toker
What I what I personally saw what the success was.
00:11:12 Jon Toker
You guys did a phenomenal job mining your database and you really went after that and and service customers and all that stuff.
00:11:19 Jon Toker
You always had this.
00:11:20 Jon Toker
Good BDC set up there in your in your dealership 2 for service in sales and.
00:11:25 Todd Bennett
Yeah, we we really.
00:11:26 Todd Bennett
Focused hard on the you know that trade proposition with our customers when they came in right?
00:11:35 Todd Bennett
You know, some people come in and get it.
00:11:37 Todd Bennett
Their car needs more work than they thought and.
00:11:41 Todd Bennett
You know, so we kind of like headed that off a little bit you.
00:11:44 Todd Bennett
Know instead of.
00:11:47 Todd Bennett
I am leading.
00:11:48 Todd Bennett
We’d offer no judge.
00:11:49 Todd Bennett
Appraisals you know we used obviously.
00:11:52 Todd Bennett
You know, like I could.
00:11:53 Todd Bennett
Probably say auto alert, right?
00:11:56 Todd Bennett
And you know it it.
00:11:58 Todd Bennett
It certainly helped us identify the right customers that that would be willing to trade based on their buying history and and their service history and all that kind of stuff that.
00:12:08 Todd Bennett
You know?
00:12:09 Todd Bennett
Quickly identifies
00:12:11 Speaker 3
You know which?
00:12:12 Todd Bennett
Are the the customers most likely to purchase so you know they’re the easy conversations I have and you know people that wanted to take advantage, took advantage, and the ones that didn’t then contact you again.
00:12:24 Jon Toker
Well, I I.
00:12:25 Jon Toker
Believe you guys?
00:12:25 Jon Toker
Did overall a pretty good job and it was.
00:12:29 Jon Toker
It was pleasure, you know, always dealing with you guys and you guys were always open and flexible and you know looking at better.
00:12:36 Jon Toker
Always better like areas to improve your dealership operations and you guys never like oh we know everything just leave us alone.
00:12:44 Jon Toker
Like you know, or we know everything the best.
00:12:46 Jon Toker
Like always that good conversations and you guys always look for areas of opportunity which was pretty good and you’re being very fair with your customers.
00:12:53 Jon Toker
The trade values was really helpful because.
00:12:57 Jon Toker
There was some bigger dealers than you were.
00:12:58 Jon Toker
You were in some months you sold more cars than them and that was interesting to see.
00:13:03 Jon Toker
Those results, like you wouldn’t expect a bigger metro dealership, sold less cars down your store and Chatham only has what 15,000 people and?
00:13:11 Jon Toker
Of the.
00:13:11 Todd Bennett
It’s bigger than that it’s I think.
00:13:13 Todd Bennett
Chatham Kent’s, like maybe twice.
00:13:14 Todd Bennett
That, but our Chatham is.
00:13:16 Todd Bennett
And then.
00:13:16 Todd Bennett
Chatham Kent’s more like.
00:13:18 Jon Toker
30 right, 30,000 but you know I was it was. It was good stuff. I was really happy to see that really good teamwork. You guys put together.
00:13:27
Yeah, I think.
00:13:27 Todd Bennett
I think in 2020 I think.
00:13:30 Todd Bennett
There was one month.
00:13:31 Todd Bennett
Where way to only store Ontario to achieve our factory target like you know that was kind.
00:13:37 Todd Bennett
Of like a badge we were proudly for.
00:13:40 Todd Bennett
A few months.
00:13:41 Jon Toker
Yeah yeah yeah, no you guys you guys did amazing and you wouldn’t expect that because like you’re not in a big market right?
00:13:50 Jon Toker
Like you’re not in some sort of something like London, you know, like kitchen or you know, like Cambridge, like those are bigger metro areas.
00:13:58 Jon Toker
And like you’re not Windsor, so you’re in between and people can always shop your numbers and take it out.
00:14:04 Jon Toker
But despite the fact you actually pull business from there from sometimes right, which is a.
00:14:10 Todd Bennett
Yeah, yeah, yeah.
00:14:10 Jon Toker
Pretty impressive thing.
00:14:13 Todd Bennett
I’m I’m always more concerned about the.
00:14:15 Todd Bennett
The ones we.
00:14:16 Todd Bennett
Lose out of our market than the ones we gain, obviously, but but you know, we’ve got to take some credit in our used car success.
00:14:24 Todd Bennett
Like you know.
00:14:26 Todd Bennett
You know you did an awesome job with with.
00:14:28 Todd Bennett
Us so I mean.
00:14:30 Jon Toker
I guess I was in the right place at the right time when we were there, and you know.
00:14:32
Yeah, I mean.
00:14:34 Jon Toker
It was pretty good.
00:14:35 Todd Bennett
Yeah, yeah, so you know you can.
00:14:37 Todd Bennett
You can take some of.
00:14:38 Todd Bennett
That credit to John, it’s OK.
00:14:39 Jon Toker
I’ll think well.
00:14:40 Jon Toker
I’ll take 1% off that credit.
00:14:42 Todd Bennett
Yeah, right?
00:14:44 Jon Toker
1%.
00:14:45 Jon Toker
Yeah, you know it was a good good.
00:14:47 Jon Toker
Synergy going on on so.
00:14:49 Jon Toker
What is your daily best practices?
00:14:51 Jon Toker
You do Todd like like what do you do as a general manager?
00:14:55 Jon Toker
Partner of a dealership like day-to-day operations?
00:14:57 Jon Toker
Like are you a micro manager?
00:14:59 Jon Toker
Or you let people do their jobs or like what is your style of management?
00:15:04 Todd Bennett
Well, I mean listen, I do my best to try to keep a a positive atmosphere, especially when we’re in the climate.
00:15:10 Todd Bennett
We are where there’s like almost no new car, new car inventory.
00:15:16 Todd Bennett
Aside from the handful of cars I got.
00:15:18 Todd Bennett
On the lot.
00:15:18 Todd Bennett
Or in the showroom.
00:15:19 Todd Bennett
There’s like one or two out on the lot and.
00:15:23 Todd Bennett
You know, I.
00:15:23 Todd Bennett
Mean that that that can affect.
00:15:26 Todd Bennett
You know the morale of our of our sales staff, but you know?
00:15:30 Todd Bennett
So we’ve got to keep his most positive environment in my micro manager.
00:15:33 Todd Bennett
No, I, you know you.
00:15:35 Todd Bennett
Know me I I?
00:15:36 Todd Bennett
Don’t let them.
00:15:38 Todd Bennett
Manage, but we meet constantly like you know especially.
00:15:44 Todd Bennett
You know, so it’s the same meeting with the used car manager.
00:15:48 Todd Bennett
We want to look and.
00:15:48 Todd Bennett
Make sure that.
00:15:49 Todd Bennett
You know our crisis or cars or price, right?
00:15:52 Todd Bennett
That we’re sourcing the best cars you know.
00:15:55 Todd Bennett
’cause obviously right now, with today’s climate getting cars you know, especially uses.
00:16:02 Todd Bennett
We know what we’re going to get for new ’cause governments are.
00:16:06 Todd Bennett
The is total is basically what we’re going to get over the next three months so, but use is a is a different animal, so.
00:16:16 Todd Bennett
Basically trying to stay on top of that, I mean with the.
00:16:21 Todd Bennett
The the service manager, obviously.
00:16:22 Todd Bennett
Regularly to to make sure.
00:16:25 Todd Bennett
That you know if we keep the text busy and all that kind of stuff like I don’t wait till the end of the month to say.
00:16:32 Todd Bennett
Oh geez, we.
00:16:32 Todd Bennett
Didn’t have a great month in service like we know daily.
00:16:36 Todd Bennett
But you know, I mean, there’s no no real magic.
00:16:39 Todd Bennett
I mean, you know I come here every day and I.
00:16:42 Todd Bennett
Want to make sure that everybody is productive?
00:16:45 Jon Toker
Well, I I think you know you’re being very humble there, but you know you guys have good practices in place and I, I was actually surprised I wasn’t expecting from a small town dealer when I first met you guys.
00:16:58 Jon Toker
And when you told me about you had a BDC center and all that stuff like you’re not an owner group and you have your own BDC Center for service.
00:17:05 Jon Toker
I’m like, yeah, I got my own full time person here and all that stuff.
00:17:08 Jon Toker
I mean that’s before COVID and everything right when you need to make those cost adjustments and stuff.
00:17:14 Jon Toker
But like you were always a big supporter of that database mining and it was.
00:17:18 Jon Toker
It was very good, you know and.
00:17:22 Jon Toker
I think you should take some of that credit too man, because you implemented all those things back in 14 and upcoming like this didn’t happen overnight, right?
00:17:29 Jon Toker
This has been going on for years of investment to the processes and.
00:17:34 Speaker 3
You know, I I.
00:17:36 Todd Bennett
I I dropped a lot of my.
00:17:37 Todd Bennett
Skill up to.
00:17:39 Todd Bennett
You know Peter Hubbard, you know, I mean and just.
00:17:44 Todd Bennett
You know on the sales side.
00:17:47 Todd Bennett
Like I I I adapted that.
00:17:51 Todd Bennett
Philosophy that he.
00:17:52 Todd Bennett
Had and and it it meant something so.
00:17:57 Todd Bennett
So you know from a sales process.
00:18:01 Todd Bennett
You know, like I trained it, so I certainly make sure it’s running to the best I in my ability here and essentially.
00:18:10 Todd Bennett
You know we our process.
00:18:12 Todd Bennett
Is based on.
00:18:13 Todd Bennett
What what the customer wants, right?
00:18:16 Todd Bennett
That’s what comes in the store.
00:18:17 Todd Bennett
They want a price, give it to customers.
00:18:20 Todd Bennett
Want payments we make sure.
00:18:22 Todd Bennett
Everybody leaves here with.
00:18:23 Todd Bennett
With payments you know trade numbers like I’ve I’ve worked in stores.
00:18:29 Todd Bennett
I’ve seen stores that that want to hold all that stuff back because of fear of what they’ll do with with numbers and I it just always felt like you know, you can’t make a decision unless you have all the information.
00:18:40 Todd Bennett
So I want to make sure you got all the information and sometimes.
00:18:43 Todd Bennett
Ends up right so.
00:18:46 Jon Toker
Well, definitely the way you do business is pretty contemporary, right?
00:18:51 Jon Toker
You’re not old school guy and which is pretty.
00:18:53 Jon Toker
You know good to see that, and you’re one we used to. I remember the days we used to evaluate your local book numbers in viotto and like 75% win ratio and like everybody used to call you.
00:19:06 Jon Toker
I said impossible.
00:19:08 Jon Toker
He can’t do it.
00:19:09 Jon Toker
But I think that number was so high.
00:19:11 Jon Toker
Because you guys.
00:19:12 Jon Toker
Were highly targeted on your customers and that experience and paying what their car really worth, right?
00:19:21 Jon Toker
That that really contributed in that 75%, and I’m sure there’s always things fall through the cracks a.
00:19:26 Jon Toker
Little bit maybe?
00:19:27 Jon Toker
It wasn’t 75, maybe it was like 72%.
00:19:30 Jon Toker
But still looks very high, right?
00:19:30 Todd Bennett
Good fire.
00:19:31 Todd Bennett
First lie, I mean.
00:19:34 Todd Bennett
Again, you know if if if someone comes in and and and you just say your cards with 5000 bucks.
00:19:42 Todd Bennett
I mean they don’t believe it’s a novel where where people get their numbers or their the values of their vehicles like I don’t have too many customers in my career come up and say, hey look I’m I happen to go on black book or you know some.
00:19:54 Todd Bennett
Auction site and some like cars worth 2500 bucks. You know they’re going into Autotrader. They’re going there.
00:20:00 Todd Bennett
They look and see what their retail.
00:20:01 Todd Bennett
And if that’s so if.
00:20:03 Todd Bennett
We establish the fact that that’s where people shop.
00:20:07 Todd Bennett
For their value of their vehicle, then we have to kind of identify that when they’re here. If not, you’re gonna tell them something that’s four or $5000, and you know in this time maybe maybe higher, with the way the star market is, and if if you don’t address that, then someone going to leave your store with the feeling they didn’t get enough.
00:20:29 Todd Bennett
Like again, it’s not.
00:20:31 Todd Bennett
It’s not a secret sauce, it’s it.
00:20:33 Todd Bennett
You know everybody in the auto industry knows this, right?
00:20:35 Todd Bennett
So thing is is that we address.
00:20:38 Todd Bennett
It with the customer.
00:20:39 Jon Toker
Well, the problem.
00:20:40 Jon Toker
Is we know all the best practices and what we should be doing in the sometimes what we do that is, we just don’t want to execute it.
00:20:49 Jon Toker
Right, what we know.
00:20:50 Jon Toker
And embrace it, and that’s the main challenge that.
00:20:54 Jon Toker
We know what needs to be done to earn that business.
00:20:57 Jon Toker
And, uh, sometimes we don’t do it.
00:21:00 Jon Toker
Sometimes we know the fact that without taking care of the problem of the current car and get customer out of the current vehicle with the with the fair valuation on it, we know that there’s no way we’re going to be able to sell a car.
00:21:14 Jon Toker
And sometimes sales people say, why don’t you try to sell it privately and like it’s?
00:21:18 Jon Toker
I think that’s the worst kind of response we can give it to a customer if we if if, let’s say customer comes in a car, those aren’t worth the the the money they think right?
00:21:29 Jon Toker
And then sales person still wants to say the deal and goes like sell it privately and come back when you’re ready and like.
00:21:35 Jon Toker
I think these are the.
00:21:36 Jon Toker
Worst things you can say.
00:21:37 Jon Toker
To a customer in a car dealership.
00:21:38 Todd Bennett
I honestly 1% they yeah I mean.
00:21:41 Jon Toker
And I think.
00:21:42 Jon Toker
They’re still doing it I I can tell you that there are some dealers out there still tell their customers why don’t you try to sell it privately and see what?
00:21:49 Jon Toker
Happens and like.
00:21:51 Todd Bennett
Yeah, yeah.
00:21:51 Jon Toker
But what what you?
00:21:52 Todd Bennett
Yeah, it it, it it?
00:21:55 Todd Bennett
It’s surprising that practice still goes on, you know, goes on and dealers it really.
00:22:00 Todd Bennett
Basically just asking the customer to leave, you know when you really think about it.
00:22:05 Jon Toker
Yeah, ’cause they worry that Daniel offended customer like if the constant car worth $1500 justify that cost of $1500 Tao. Why is it $1500?
00:22:16 Jon Toker
Because as rust has this kilometres old card, this this, this this explain that to the customer and and be reason with them.
00:22:24 Jon Toker
Don’t just tell you know what your car was. 5000 laws because I think it is 5000. No cares what you think right? Justify that.
00:22:33 Jon Toker
But you know, COVID change a lot of things because of that new car inventory situation that there’s not enough.
00:22:33
Right?
00:22:38 Jon Toker
Cars out there.
00:22:40 Jon Toker
Now the values went up and dealers starting to sell cars what they have on the ground and then they learn how to sell a car without discounting it right?
00:22:51 Jon Toker
Because it’s supply and demand.
00:22:54 Jon Toker
Less supply means high demand and now you don’t have enough new cars.
00:22:57 Jon Toker
That means you’re.
00:22:57 Jon Toker
Not going to have enough use.
00:22:59 Jon Toker
Curves because where are you going to pull?
00:23:01 Jon Toker
Those traits from.
00:23:02 Jon Toker
That’s your bread and butter business.
00:23:04 Jon Toker
And if you want to go buy cars at the auction, go ahead and do it.
00:23:07 Jon Toker
If you can compete with those.
00:23:09 Jon Toker
Numbers there.
00:23:09 Jon Toker
Which is through the roof.
00:23:12 Jon Toker
You know?
00:23:13 Jon Toker
But, uh, I mean.
00:23:14 Todd Bennett
You know, in some cases that’s that’s a source.
00:23:17 Todd Bennett
That you just have to realize that you know maybe you do have to pay more at the auctions and then you don’t want.
00:23:22 Todd Bennett
Just trust the fact that you will move the car.
00:23:25 Jon Toker
Yeah, you just gotta keep it.
00:23:27 Jon Toker
Keep a very close eye when you do that because I believe things are very fluid because as soon as that new car inventory ramps up from the manufacturers, which eventually will because they have no choice to do that right.
00:23:41 Jon Toker
They didn’t build those factories to run it once a week or twice a week.
00:23:45 Jon Toker
It’s just not profitable.
00:23:47 Jon Toker
For them I know.
00:23:48 Speaker 3
Well, to me that’s that’s.
00:23:49 Todd Bennett
Going to be the interesting thing.
00:23:50 Todd Bennett
When things do rebound and you know I don’t have a crystal ball.
00:23:53 Todd Bennett
When it’s going to but.
00:23:56 Todd Bennett
When it when it does and to see what those what what will change.
00:24:01 Todd Bennett
I really, truly believe that you know you know, like I, I don’t know too many dealers and I can’t speak outside the underworld that are are, you know, reducing their sale price that much with selling it, you know.
00:24:15 Todd Bennett
In this climate, you know we don’t have any cars in in in there discounting.
00:24:18 Todd Bennett
At night, and pay your bills, but.
00:24:22 Todd Bennett
You know, but the experience that a customer is having coming in and paying what we’re suggesting.
00:24:30 Todd Bennett
Or the you know, sort of.
00:24:32 Todd Bennett
Manufacturer suggested price or value price or.
00:24:35 Todd Bennett
Whatever you call it.
00:24:37 Todd Bennett
Uh, by hanger?
00:24:38 Todd Bennett
I don’t.
00:24:39 Todd Bennett
There’s there’s not that negotiation soon as the negotiations they want so much off.
00:24:44 Todd Bennett
And then you’re trying to hold on to whatever margin.
00:24:47 Todd Bennett
You can it.
00:24:48 Todd Bennett
It starts to diminish that customer experience and sometimes people, even they just feel like there’s so much more on the table like it’s actually going to hire people.
00:24:58 Todd Bennett
Let me start, you know, putting through it.
00:25:00 Todd Bennett
You know, train process.
00:25:01 Todd Bennett
I always ask you know, point out a civic or CRV in the showroom.
00:25:05 Todd Bennett
Else we we think we.
00:25:06 Todd Bennett
Paid for that car and everyone thinks it’s like shoots where you know like sportchek goes and buys Nikes for 50 bucks and sells them for 100 right and it’s amazing how many people think that.
00:25:18 Todd Bennett
There’s so much markup in the car.
00:25:19 Todd Bennett
It’s just based off.
00:25:21 Todd Bennett
You know what the?
00:25:23 Todd Bennett
Price of the product is and when they.
00:25:25 Todd Bennett
Find out what it really is.
00:25:27 Todd Bennett
It’s like you.
00:25:28 Todd Bennett
Could see the shock on their face right?
00:25:30 Todd Bennett
So I mean.
00:25:32 Todd Bennett
It’s it’s.
00:25:34 Todd Bennett
You know, I guess what I’m trying to say is that like you know, paying that price that we’re selling the Chrysler is a really good deal when you.
00:25:40 Todd Bennett
Think about it right?
00:25:42 Todd Bennett
You know you.
00:25:42 Jon Toker
Yeah, if you if you think about it.
00:25:43 Speaker 3
Don’t go in there.
00:25:45 Jon Toker
Unfortunately there’s a lot of information out there that people tend to see and some of that information is from United States.
00:25:52 Jon Toker
Sometimes that they have.
00:25:53 Jon Toker
Different, you know?
00:25:54 Jon Toker
Incentives in place.
00:25:55 Jon Toker
Sometimes depending on the market.
00:25:58 Jon Toker
And a lot of speculations from people that Oh yeah, dealer has that thing called hold back and they make $10,000 on a car like that.
00:26:05 Jon Toker
Which car were sells for 20,000 which is illogical to think that way. But you know, there’s a lot of things.
00:26:11 Jon Toker
And the problem?
00:26:12 Jon Toker
Is this though in our industry sometimes that we’re not too honest with the customers and explain to them and give that.
00:26:18 Jon Toker
Confidence that hey, like you know, manufacturer sets that price on that car.
00:26:24 Jon Toker
This is a pretty good pricing and it’s a.
00:26:27 Jon Toker
Fair value for it.
00:26:29 Jon Toker
And and you don’t give that confidence in the customer.
00:26:31 Jon Toker
So customer always thinks like.
00:26:34 Jon Toker
Is there still room to negotiate? Maybe my neighbor got a better deal than I did, you know, can I squeeze another $500 here?
00:26:41 Jon Toker
Like because we don’t do a good job sometimes with our customers to build that confidence they don’t trust what we say unfortunately, and I think one thing salespeople need to improve on is trust their word, they say and be honest.
00:26:56 Jon Toker
Put them in straightforward, like hey, you’re buying this entry level vehicle.
00:27:00
It’s a pretty.
00:27:01 Jon Toker
Good price, you’re getting 2.99 interest rate and your payment is this much. We’re giving good money for your trade. Give that confidence to your customer.
00:27:09 Jon Toker
Don’t play games.
00:27:09 Todd Bennett
And he wanted.
00:27:10 Todd Bennett
Variable if people knew the variable.
00:27:12 Todd Bennett
Then it would be.
00:27:14 Todd Bennett
You know the different part, uh, different negotiation, right? Like if if you think that it’s you think that it’s like 100% markup or something like that, then ’cause you ’cause you don’t know that because not knowing the variable makes the the you know it turns into a guessing game right now. Mind you, I don’t go.
00:27:35 Todd Bennett
And tell people what the variable.
00:27:36 Todd Bennett
This, but we try to let them know what this is.
00:27:40 Todd Bennett
It’s not you.
00:27:40 Jon Toker
Come on, Benny Benny, tell us the.
00:27:42 Jon Toker
Truth you make honor for somewhere.
00:27:44 Speaker 3
I mean I I always joke around.
00:27:47 Todd Bennett
With my dealer friends and said, you know, one day I’m going to go in the grocery store and they bring it up at like $241.00 and I say, listen, I’ll tell you what I’m gonna do, you know?
00:27:55 Todd Bennett
I’m not going to use my debit card.
00:27:58 Todd Bennett
I’m going to give you.
00:27:58 Todd Bennett
200 cash go talk to your guy.
00:28:03 Todd Bennett
And go look yeah, go look at the clerk.
00:28:06 Todd Bennett
You know the look on his or her face, right?
00:28:09 Todd Bennett
You know we just don’t do it.
00:28:11 Todd Bennett
You don’t go into sport check.
00:28:12 Todd Bennett
And start negotiating with them.
00:28:13 Todd Bennett
But it’s funny how we do it in car business and some you know some.
00:28:18 Todd Bennett
Like I know.
00:28:19 Todd Bennett
That Hyundai has a.
00:28:20 Todd Bennett
A Genesis line there that that is, you know.
00:28:24 Todd Bennett
Non-negotiable, it’s prices of price and all that like.
00:28:27 Todd Bennett
I just wish.
00:28:28 Todd Bennett
That that our industry as a whole.
00:28:30 Todd Bennett
Wouldn’t be just small.
00:28:31 Todd Bennett
Pockets like that where you know?
00:28:35 Todd Bennett
It it it’s, it’s like that.
00:28:37 Todd Bennett
Across the board everywhere.
00:28:39 Todd Bennett
And that’s what I was saying earlier.
00:28:40 Todd Bennett
Like when when inventories returned to normal?
00:28:45 Todd Bennett
I’d like to hopefully see that you know as a whole, that we sell the cars closer to that that price instead of making this negotiation more.
00:28:56 Jon Toker
I one thing in the car business that.
00:28:58 Jon Toker
Every dealer should.
00:29:00 Jon Toker
Aim to focus on is the thing the new term called self sustainability.
00:29:05 Jon Toker
So self sustainability means that.
00:29:09 Jon Toker
Without spending a single penny on advertising dollars, you should still be able to hit your manufacturers or internal targets with your own database of customers.
00:29:18 Jon Toker
As long as you’ve been in the business more than 10 years, right?
00:29:21 Jon Toker
I’m not talking about a brand new store opens up their doors and expect to do that.
00:29:25 Jon Toker
But if you’re a dealership and you’ve been in there in the same location more than a decade.
00:29:30 Jon Toker
You should aim to become a self sustainable operation.
00:29:33 Jon Toker
Advertising is amazing.
00:29:35 Jon Toker
Marketing is the best thing to do it, but let’s cover our basics.
00:29:38 Jon Toker
First, let’s let’s get to that self sustainability target of, you know, hitting our factory targets or internal targets with our existing service and sales customers by treating them nice.
00:29:51 Jon Toker
VIP white glove.
00:29:52 Jon Toker
Treatment to bring them back to get cars.
00:29:56 Jon Toker
Get the referrals from them first. Then let’s go outside and spend that ten $15,000 a month minimum on advertising.
00:30:03 Jon Toker
That’s my understanding of the future of the car business because existing customers with the existing service with you less likely to have that trust.
00:30:16 Jon Toker
Issues with you when you tell them this is your best possible price.
00:30:19 Jon Toker
You can do it because they conducted that business with.
00:30:22 Jon Toker
They know Todd Bernardino Christy grow, they know Lou, they know your staff so when they come back for the second car three or four years.
00:30:29 Jon Toker
Later you can convince them easier because you had that existing rapport well.
00:30:35 Jon Toker
What we do that is, you know what?
00:30:37 Jon Toker
Let’s go on our PMA and advertise digital marketing so the manufacturer won’t catch us and then let’s try to steal their business.
00:30:45 Jon Toker
First become self sustainable with your own clientele and then worry about stealing business from a competition.
00:30:53 Jon Toker
So, and that’s the problem too.
00:30:56 Jon Toker
What happens when you try to steal a business from a competition?
00:30:58
I give you a better.
00:30:59 Jon Toker
Deal like what’s your competitive edge?
00:31:02 Jon Toker
And I will always say I give you.
00:31:03 Jon Toker
A better deal.
00:31:04 Jon Toker
I beat their deal by this like.
00:31:06 Jon Toker
What does it do for you number one?
00:31:08 Jon Toker
That service customer doesn’t come back for service right?
00:31:12 Jon Toker
The second one is your CSI goes down because everything is based on.
00:31:16 Jon Toker
I give you a better deal.
00:31:18 Jon Toker
And no relationship, nothing.
00:31:22 Jon Toker
I don’t think that’s the right practice to do it, so I think that’s going to be the main challenge when that inventory ramps up and then the car started arriving and dealers panicking like OK, Now we gotta go back to the old way of doing business.
00:31:34 Jon Toker
All that customer what would it get?
00:31:35 Jon Toker
You during your business.
00:31:36 Jon Toker
Today you know things like that.
00:31:39 Jon Toker
I mean it’s good to trying to close deals.
00:31:41 Jon Toker
You should always ask for a business.
00:31:43 Jon Toker
There right, always find a way, but.
00:31:44 Todd Bennett
Well, Fort Smith yeah.
00:31:46 Jon Toker
Don’t just fly.
00:31:48 Jon Toker
My sense is like 2 senses don’t only focus on the price I give.
00:31:54 Jon Toker
You a better deal.
00:31:55 Jon Toker
Or don’t go.
00:31:55 Jon Toker
Spend thousands of dollars wasting that money.
00:31:59 Jon Toker
Because one thing is.
00:32:00 Jon Toker
This the manufacturers do a phenomenal job advertising the product.
00:32:03 Jon Toker
Anyways, digital.
00:32:04 Todd Bennett
Will do.
00:32:06 Jon Toker
If you’re gonna do a digital advertising, your number one goal and the digital advertising.
00:32:11 Jon Toker
Should be targeting your own database, right?
00:32:14 Jon Toker
Like why?
00:32:14 Jon Toker
Why would you like to go and trying to promote the brand that you sell?
00:32:17 Jon Toker
OK, promote it but you don’t have to compete with the other brands with your advertising strategy because manufacturers are giants.
00:32:26 Jon Toker
They’re very smart people like, despite the fact everybody all the dealers think manufacturers don’t know anything about the business they have.
00:32:34 Jon Toker
Very good people working for them and and they make those digital marketing decisions based on the data and they do really good conquest campaigns and I’m talking about all the manufacturers not one specific like they’re very smart at data, right?
00:32:49 Jon Toker
They’re better than the car dealers you gotta trust and rely.
00:32:53 Jon Toker
And you know.
00:32:54 Jon Toker
Have faith in your manufacturer to let that competitive thing to do it, and then you focus on taking care of the customer who’s contacting you, whether phone or E leads or all those different mediums like.
00:33:07 Jon Toker
That’s what I think I don’t know.
00:33:08 Jon Toker
What you think about that but?
00:33:10 Todd Bennett
Well, I mean my my.
00:33:14 Todd Bennett
My market might be different, like I don’t have another Honda store in the.
00:33:19 Todd Bennett
City I’m in like some of the.
00:33:20 Todd Bennett
Bigger cities do, but what?
00:33:22 Todd Bennett
I do and we talked about.
00:33:23 Todd Bennett
You know the size of Chatham Kent, and you know, like I think that next closest dealer would be Windsor or you know London.
00:33:32 Todd Bennett
But I look at all the people.
00:33:33 Todd Bennett
That you know.
00:33:34 Todd Bennett
Basically, if you look from London always.
00:33:36 Todd Bennett
Right down to.
00:33:39 Todd Bennett
Windsor, Sonia.
00:33:40 Todd Bennett
How many people live there?
00:33:43 Todd Bennett
There’s a lot of people like.
00:33:45 Todd Bennett
It’s gotta be close to.
00:33:46 Todd Bennett
A million and a half people, maybe more.
00:33:48 Todd Bennett
And there’s, you know, a handful of harvesters.
00:33:50 Todd Bennett
There’s plenty of people out.
00:33:51 Todd Bennett
There for us all to sell.
00:33:53 Todd Bennett
Cars, so I really don’t really try to focus on outside my PM A I mean.
00:33:59 Todd Bennett
Like yeah, to me it’s not about selling the car and that’s it.
00:34:03 Todd Bennett
Like we, you know, we want to have a relationship where they come back and and do service with this and all that kind of stuff.
00:34:08 Todd Bennett
And you’re right, I’m not going to drive.
00:34:10 Todd Bennett
Personally, I I don’t think I’d drive over an hour to get an oil change.
00:34:14 Todd Bennett
Or, you know, weren’t you work.
00:34:15 Todd Bennett
I’d rather I’d.
00:34:17 Todd Bennett
You know deal local.
00:34:19 Todd Bennett
Hoping people think that too it that way too.
00:34:22 Todd Bennett
So yeah, and you know what it is when.
00:34:24 Todd Bennett
You think about conquest advertising it is.
00:34:26 Todd Bennett
It is a crapshoot.
00:34:27 Todd Bennett
Sometimes ’cause you.
00:34:28 Todd Bennett
Don’t know like I don’t know any car dealers anymore that put ads in the paper, but I remember like 10 years ago there was just putting half page color dads in in in the paper and they’re spending boatloads of money.
00:34:40 Todd Bennett
Then you know.
00:34:41 Todd Bennett
Radio is a big thing.
00:34:42 Todd Bennett
I don’t know anybody advertising on the radio anymore like you know to put that that money into a.
00:34:50 Todd Bennett
And I haven’t, you know, on average you know.
00:34:52 Todd Bennett
You’re not going to get a return on investment or not.
00:34:55 Todd Bennett
No return on.
00:34:56 Todd Bennett
Investment, which is is scary as well.
00:34:58 Todd Bennett
So you know it is.
00:35:00 Todd Bennett
It is a, it isn’t.
00:35:02 Todd Bennett
And that’s what that’s why I.
00:35:04 Todd Bennett
Think we focus my.
00:35:05 Todd Bennett
You know, in our database again.
00:35:07 Todd Bennett
The stores been here for like 40 almost 44 years.
00:35:11 Todd Bennett
So there’s lots of people that we can advertise to that you know, know what kind of business we are and how we can.
00:35:18 Todd Bennett
Treat them right.
00:35:19 Jon Toker
Known customers who did actively doing business with you.
00:35:21 Todd Bennett
Customers, yeah.
00:35:22 Jon Toker
Remember the days we look at your database and we said.
00:35:25 Jon Toker
’cause so how many active customers been here to your dealership last six months?
00:35:28 Jon Toker
And we were like, wow, that’s like thousands of people.
00:35:31 Jon Toker
That’s amazing, you know and like.
00:35:33 Todd Bennett
Another side was interesting when you had to do the report where.
00:35:36 Todd Bennett
We looked at people that you know.
00:35:38 Todd Bennett
Did service with us but didn’t buy from us.
00:35:41 Jon Toker
Yeah, that was.
00:35:41 Speaker 3
Using their loan spectrum.
00:35:42 Jon Toker
A very interesting one.
00:35:43 Todd Bennett
Yeah, and then you look and see you know what their service history was with us that they hadn’t bought a car and look at some of the distance.
00:35:50 Todd Bennett
That people were.
00:35:51 Todd Bennett
Driving right so?
00:35:53 Todd Bennett
And and again.
00:35:54
Right?
00:35:55 Todd Bennett
That that’s that’s that’s.
00:35:57 Todd Bennett
Why it’s important to make sure that you know you talk.
00:35:59 Todd Bennett
We talk about CSI that that we keep our customers very happy too.
00:36:03 Todd Bennett
So people don’t follow the funnel.
00:36:06 Jon Toker
There’s nothing more important in a car dealership than keeping or any business to keeping that customer happy.
00:36:13 Jon Toker
Because if you don’t keep the customers happy and you’re trying to, you know, trying to keep yourself happy.
00:36:21 Jon Toker
It’s it’s it’s going to.
00:36:22 Jon Toker
Doom the business right?
00:36:23 Jon Toker
And and.
00:36:24 Jon Toker
Any any kind of establishment focuses on customers.
00:36:29 Jon Toker
The rest will come after that easily, so that’s that’s what that’s what that’s why the manufacturers pushing the CSI too much because like happy customers you know, bring more customers and you know, it only takes one upset customer to affect 100 sales.
00:36:44 Jon Toker
So so it’s interesting.
00:36:47 Jon Toker
I actually have a question.
00:36:49 Jon Toker
From romit
00:36:51 Jon Toker
He’s like he had basically asked.
00:36:54 Jon Toker
Has COVID highlighted redundancies, redundancies, redundancies in the process?
00:37:01 Jon Toker
If So what are they?
00:37:02 Jon Toker
How are you addressing it?
00:37:06 Todd Bennett
I don’t think I don’t.
00:37:08 Todd Bennett
I don’t think it has you.
00:37:11 Todd Bennett
You know, I mean.
00:37:12 Todd Bennett
The the the sales process still works.
00:37:17 Todd Bennett
You know, I think that you know there’s some things were more cautious in, like when it comes to test drives.
00:37:23 Todd Bennett
Obviously you know.
00:37:25 Todd Bennett
You know that that that.
00:37:27 Todd Bennett
Is a little different, but.
00:37:30 Todd Bennett
The only the only thing that I can I could say that that would really.
00:37:35 Todd Bennett
Not change, but maybe focus more.
00:37:37 Todd Bennett
On is that when?
00:37:39 Todd Bennett
You know we greeted customer immediate customer.
00:37:41 Todd Bennett
We immediately want to look at their car, you know?
00:37:45 Todd Bennett
Uh, as a as a sales manager.
00:37:50 Todd Bennett
If you’re looking at a car, let’s say that’s something you normally wouldn’t keep, something that would be.
00:37:58 Todd Bennett
You know, maybe for that you know I’m a harvester, so it’s a Ford Mustang and I’m looking at it in October.
00:38:03 Todd Bennett
Do I really want a GT Mustang when ordering a sales process in most stores that sells that sales manager is going to get that information on that car like after the garment test drive after.
00:38:15 Todd Bennett
They think, hey, this.
00:38:16 Todd Bennett
Is the car we might you know, get some more?
00:38:17 Todd Bennett
Detailed numbers on and yeah, you know, let’s look at that car now, but you didn’t give your sales manager about 15 to half 20 minutes to decide if he wants that car or not, but.
00:38:29 Speaker 3
Just imagine if.
00:38:31 Todd Bennett
He had that information or she had that information.
00:38:37 Todd Bennett
To you know.
00:38:38 Todd Bennett
Sort of, the second step of that sale, so.
00:38:40 Todd Bennett
While that customer
00:38:41 Todd Bennett
Is looking at a car, you know, getting the walk around.
00:38:45 Todd Bennett
Going on a test drive.
00:38:47 Todd Bennett
And now that sales manager might have 45 minutes to decide, hey, this might be a car I want. Get some time to do some research you know.
00:38:54 Todd Bennett
So I insist that.
00:38:58 Todd Bennett
Uh, we get that information as soon as possible.
00:39:02 Todd Bennett
And we talked.
00:39:03 Todd Bennett
Earlier about look to book right and having that high percentage of look to book I’m I’m.
00:39:08 Todd Bennett
I’m starting to let that go.
00:39:10 Todd Bennett
I I I had sucked in our sales meeting on Monday with the sales people and said I want as many appraisals in there as possible.
00:39:17 Todd Bennett
I’m not.
00:39:18 Speaker 3
Really so.
00:39:19 Todd Bennett
Looking at the.
00:39:19 Todd Bennett
Closing ratio on.
00:39:21 Todd Bennett
It is that right now we need to buy as many used cars as we can and the more information that we can put in there and more appraisals we can do, the more likelihood that we can buy some cars and not cut over.
00:39:31 Todd Bennett
The auction or not?
00:39:32 Todd Bennett
Have to, you know.
00:39:34 Todd Bennett
Uh, trying to buy it from another lot here.
00:39:37 Todd Bennett
Around and it it just it becomes.
00:39:41 Todd Bennett
Financially, almost impossible, right?
00:39:44 Todd Bennett
So but you know the best ways to get good used cars or from people that you know done business with you.
00:39:51 Todd Bennett
You know about it or they’re local and.
00:39:52 Todd Bennett
All that kind of stuff, so I.
00:39:54 Todd Bennett
Want as much of that.
00:39:55 Todd Bennett
Information early on.
00:39:57 Todd Bennett
Where a lot of dealers you know.
00:39:59 Todd Bennett
Use car managers.
00:40:01 Todd Bennett
Don’t want to look or put numbers on cars or priest cars or anything like that unless there’s.
00:40:08 Todd Bennett
A purchase didn’t happen, we’re I.
00:40:10
Right?
00:40:11 Todd Bennett
I’ve abandoned that.
00:40:12 Todd Bennett
I want I want you know, like it’s also, it’s February.
00:40:15 Todd Bennett
Like you know how busy are we?
00:40:17 Todd Bennett
So I I don’t know if I’m.
00:40:19 Speaker 3
Answering this question or not.
00:40:20 Todd Bennett
But that’s the only real.
00:40:21 Todd Bennett
Thing that I’ve I’ve, you know, focused on.
00:40:23 Todd Bennett
Is like let’s let’s start praising them really.
00:40:26 Todd Bennett
Early so I have.
00:40:28 Todd Bennett
A lot more time to decide if.
00:40:29 Todd Bennett
That’s a car when I buy.
00:40:32 Todd Bennett
For the lot, or maybe we’re going to wholesale or put it on on an.
00:40:35 Todd Bennett
Auction, you know?
00:40:37 Todd Bennett
Giving yourself more than 10 minutes to make.
00:40:39 Todd Bennett
A decision on something.
00:40:40 Todd Bennett
Like that and also listen, our customers come in.
00:40:45 Speaker 3
It’s a unique business.
00:40:47 Todd Bennett
Because the majority of the time someone buying a car from us, right?
00:40:50 Todd Bennett
They’re also selling us something you don’t go to a furniture store with your old couch and see what you’re going to.
00:40:55 Todd Bennett
Get for it right, but.
00:40:56 Todd Bennett
They do with your car, it’s not.
00:40:58 Speaker 3
Like it’s such.
00:40:58 Todd Bennett
A unique business that way, right?
00:41:01 Todd Bennett
So like.
00:41:04 Todd Bennett
So customer comes in, they want to know what they’re going to pay for a new car.
00:41:08 Speaker 3
And what you’re?
00:41:08 Todd Bennett
Going to pay for theirs, so let’s draw that attention up front on the on their car and get that going.
00:41:15 Todd Bennett
You know and then again, I’m.
00:41:16 Todd Bennett
Going to give him some details that maybe a lot.
00:41:19 Todd Bennett
Of dealers aren’t going.
00:41:19 Todd Bennett
To give out a few right.
00:41:21 Todd Bennett
I’m not afraid to lose business because I gave someone information.
00:41:26 Todd Bennett
I’m afraid to lose business.
00:41:28 Todd Bennett
If I don’t give that customer information.
00:41:30 Todd Bennett
If that makes any sense, right, you know.
00:41:32 Todd Bennett
I I just find it funny I’ve gone in stores as a as a trainer.
00:41:35 Todd Bennett
Running the stores and just watched how sales.
00:41:37 Todd Bennett
People are afraid to give people.
00:41:40 Todd Bennett
Pricing payments right like in.
00:41:42 Todd Bennett
Stores where they’re saying, well, how?
00:41:43 Speaker 3
Much is that.
00:41:44 Todd Bennett
Car, you know, go over to a car.
00:41:45 Todd Bennett
It’s $100,000 and say well it’s 99,000 or plus tax and that’s the price the customer is not going to.
00:41:51 Todd Bennett
Hey right that customer is most likely going to.
00:41:54 Todd Bennett
Make monthly payments on it, right?
00:41:56 Todd Bennett
That’s really what the.
00:41:57 Todd Bennett
Customer is asking.
00:41:58 Todd Bennett
Right?
00:41:58 Todd Bennett
And and to to run away from that and not give that person information, because you’re afraid they’re going to take that information to another store and shop well.
00:42:07 Todd Bennett
If you don’t give him the information, then they’re going to go someplace that will probably do business there.
00:42:13 Jon Toker
Well, make your experience such a pleasant experience so that they will make the purchase when they come to your store.
00:42:21 Jon Toker
Because you only, I mean if you look at the data coming from these companies like Google and all those data analytics company, right? They say customer spam customers only go to 1.6 dealerships.
00:42:33 Jon Toker
Before they pull the trigger, well, that means you’re very high chances of selling that customer when they’re in front of you.
00:42:40 Jon Toker
So then if you give them what they want and treat them nice and convince the fact that this is the right place to conduct business.
00:42:49 Jon Toker
Why would they leave the store in somewhere else?
00:42:52 Jon Toker
They already made their decision anyways.
00:42:53 Jon Toker
They already put their heart and soul on that car before they come.
00:42:57 Jon Toker
If your car wasn’t good, they wouldn’t be sitting in front of you to begin with, right?
00:43:02 Jon Toker
They would just test drive and says, OK, we’ll come back later and just disappear right, or they won’t even come there to begin with like?
00:43:08 Jon Toker
Do you ever go to the restaurant that it doesn’t taste the way you want, right?
00:43:12 Jon Toker
Like you don’t do it.
00:43:14 Jon Toker
People spend a lot of time online.
00:43:16 Jon Toker
Find out What Car they want.
00:43:18 Jon Toker
Do you just want to confirm that?
00:43:19 Jon Toker
If you’re the right place to conduct that business, give them their feelings or in their business very straight forward process and you’re absolutely right.
00:43:27 Todd Bennett
Yeah yeah, yeah.
00:43:29 Todd Bennett
And I, you know, I I think you’re bang on that on that ratio as well.
00:43:35 Todd Bennett
The and I I remember I just a quick story about when I was trading at a store and and I remember asking.
00:43:41 Todd Bennett
Them if they if someone came in and asked for a brochure, or would they consider that person up or a lead and and they?
00:43:48 Todd Bennett
And they said no.
00:43:50 Todd Bennett
Uhm, you know as like you know so well they just come in to get information.
00:43:56 Todd Bennett
And I was like anybody that.
00:43:57 Todd Bennett
Pulls a handle on that door.
00:43:59 Todd Bennett
You know they didn’t come in.
00:44:01 Todd Bennett
Here, unless they wanted.
00:44:02 Todd Bennett
To buy a car like.
00:44:03 Todd Bennett
Maybe not today, maybe not next month, but.
00:44:06 Todd Bennett
Who would go to a car dealer to get a brochure?
00:44:08 Todd Bennett
Or who would go to a car?
00:44:09 Todd Bennett
Dealer just to like look at something and.
00:44:11 Todd Bennett
And you know, I’m.
00:44:13 Todd Bennett
Going to buy a car eventually in my.
00:44:14 Todd Bennett
Life like, obviously there’s some interest.
00:44:16 Todd Bennett
Right and and I just couldn’t get through to him and I.
00:44:20 Todd Bennett
Said, just imagine if.
00:44:21 Todd Bennett
You went to Shoppers Drug Mart and are you work there and I went into Shoppers Drug Mart.
00:44:25 Todd Bennett
I’m down shampoo, aisle and.
00:44:27 Todd Bennett
Hey how can I help you?
00:44:28 Speaker 3
Out, well, well I’m just just, you know.
00:44:30 Speaker 3
Bad information today.
00:44:32 Todd Bennett
I don’t know if I’m gonna get the Pantene or whatever, but you know I’m going to.
00:44:35 Todd Bennett
Look around, I’m going to go to and then.
00:44:36 Todd Bennett
Go to Rexall and see what they got there.
00:44:38 Todd Bennett
Is on for and I’m.
00:44:39 Todd Bennett
Going to get.
00:44:39 Todd Bennett
It for the.
00:44:40 Todd Bennett
Best price you know.
00:44:41 Todd Bennett
If you’re going in there.
00:44:42 Speaker 3
You’re going to.
00:44:43 Todd Bennett
Buy it right.
00:44:44 Todd Bennett
So you know I’m not delusional to think that that everyone that’s going to come in here is going to is going to buy a car, and they’re going to buy for me today.
00:44:52 Todd Bennett
But I believe that if I do everything right.
00:44:55 Todd Bennett
That there’s no reason to leave.
00:44:58 Todd Bennett
Right?
00:45:00 Todd Bennett
Like you know you’d be sitting there. Yeah, 26 years I I hear all they’ve only got 10 minutes.
00:45:06 Todd Bennett
They gotta, they gotta go.
00:45:07 Speaker 3
Pick up their kids.
00:45:08 Speaker 3
Why my father of.
00:45:08 Todd Bennett
Three, I’ve only got 10 minutes.
00:45:11 Speaker 3
I only have 10 minutes.
00:45:13 Speaker 3
I’m not gonna like put myself in a situation where I could be late picking him up so you know, I I always sort of.
00:45:20 Todd Bennett
Think about what they’re saying, right?
00:45:21 Todd Bennett
They’re not saying.
00:45:22 Todd Bennett
I got to pick up my kids in 10 minutes.
00:45:24 Todd Bennett
You only have 10 minutes to allow me, and if there’s any extra time.
00:45:29 Todd Bennett
Then you have to earn it, right?
00:45:32 Todd Bennett
I’ve had people all in my career town attendance in a 10 minutes an hour and.
00:45:35 Todd Bennett
1/2 later.
00:45:36 Todd Bennett
They’re still here, right?
00:45:37 Todd Bennett
’cause if we made the built value why they should stay or why they why?
00:45:41 Todd Bennett
Why we got more than 10 minutes?
00:45:43 Jon Toker
Or or think this way.
00:45:44 Speaker 3
I’m glad you could.
00:45:45 Todd Bennett
Get me going.
00:45:46 Jon Toker
But but but think this.
00:45:48 Jon Toker
Way to Todd like.
00:45:49 Jon Toker
Let’s say a customer ’cause there’s going out there that let’s say the customer is in the process of negotiating right?
00:45:55 Jon Toker
And there’s a.
00:45:55 Jon Toker
Hot negotiation going.
00:45:56 Jon Toker
On back and forth, right and the salesperson comes to, he says.
00:46:00 Jon Toker
Unless we give them this, they’re gonna walk away and like you’re looking at your GP or like $700.00 gross you’re holding and like custom wants another thousand off and all of a sudden you go up.
00:46:11 Jon Toker
There’s a manager and like explain to them and somehow the deal is closed and then they go to the business office and they spend another $3000. I’m like then your sales.
00:46:20 Jon Toker
Person used to tire.
00:46:21 Jon Toker
They don’t have money.
00:46:22 Jon Toker
To spend OK, but how did?
00:46:24 Jon Toker
They spend more in the business office because their business manager did a better.
00:46:28 Jon Toker
Job explaining the packages available for their benefit and the customer said that makes sense because as a salesperson, you didn’t do a good job explaining to them why this is.
00:46:38 Jon Toker
The price of the car.
00:46:39 Jon Toker
You know what I mean like?
00:46:41 Jon Toker
It’s so far how many times.
00:46:43 Jon Toker
That happens, right? Oh yeah, unless you get $5 off from the payment, they’re not going to do it, and they go to the business office daily with $30 more payment.
00:46:50 Jon Toker
And the detailed sales post what happened is, like, uh?
00:46:54 Jon Toker
I don’t know.
00:46:54 Jon Toker
I’m like, I tell you what happened your.
00:46:56 Jon Toker
Business manager did a better job than you.
00:46:58 Jon Toker
Did explaining that customer.
00:46:59 Todd Bennett
Yeah, yeah.
00:47:01 Speaker 3
I think I.
00:47:02 Speaker 3
Think people have two budgets too, I think.
00:47:04 Todd Bennett
They have what they kind of want to save on the car and and you know what they want to spend on protecting it too.
00:47:11 Todd Bennett
I you know again, I don’t have any data to support that, but that’s just my gut.
00:47:16 Jon Toker
I think it’s all about relationship and how much trust you can build with your customers.
00:47:22 Jon Toker
And how good of a job you.
00:47:24 Jon Toker
Do satisfying their purchase needs is the is the secret.
00:47:30 Jon Toker
There’s really nothing specific about this.
00:47:33 Jon Toker
Just greet customers with a smile.
00:47:36 Jon Toker
Answer the questions, do your job presenting the product.
00:47:40 Jon Toker
Do your test drives right.
00:47:41 Todd Bennett
Yeah, they get what they want.
00:47:42 Jon Toker
Make sure.
00:47:43 Todd Bennett
Give them.
00:47:43 Todd Bennett
What they want?
00:47:43 Jon Toker
Give them what they want, give them the data they need and ask for the business.
00:47:48 Jon Toker
Nothing wrong with asking the business, ask for it.
00:47:51 Jon Toker
You know what do you think and.
00:47:54 Jon Toker
But don’t try to play games like oh all that praise in your.
00:47:58 Jon Toker
Car when you’re ready to Are you ready?
00:47:59 Jon Toker
To buy today, Sir.
00:48:01 Jon Toker
What kind of question is that?
00:48:02 Jon Toker
Like you know.
00:48:04 Jon Toker
They’re disrespectful, right?
00:48:05 Jon Toker
But and well, it is what it is.
00:48:09 Jon Toker
You know, Todd time flies by with you, man like.
00:48:12 Jon Toker
Normally I do these for 30 minutes where like almost in 50 minute mark.
00:48:16 Jon Toker
Now I did just realize that wow, no it’s OK.
00:48:16
Oh, awesome.
00:48:19 Jon Toker
I have no issue I guess.
00:48:22 Jon Toker
ROM it said Dromod said your answer is good.
00:48:26 Jon Toker
Refocusing when you auction the training process.
00:48:29 Jon Toker
Thank you.
00:48:30 Jon Toker
Always a smart guy is very analytical guy so I I he was the DRM and we used to do dealer with just together and a smart smart guy.
00:48:38 Jon Toker
So we’re almost the same age and Brent Jewelers.
00:48:42 Jon Toker
By the way, Brent Jewelers is the guy who wrote me in the car business more than 13 years ago back in Halifax, NS. And he’s like my first mentor in the car business.
00:48:46 Todd Bennett
Oh yeah.
00:48:52 Todd Bennett
I wonder if he has regrets.
00:48:53 Todd Bennett
I’m kidding.
00:48:54 Jon Toker
Oh for sure he does like.
00:48:56 Jon Toker
He always says why do we let people like you in?
00:48:58 Jon Toker
The car now.
00:48:58 Jon Toker
I’m kidding.
00:48:58 Jon Toker
He doesn’t say that.
00:49:00 Jon Toker
But Brenda is the guy who thought all the basics in the car business.
00:49:05 Jon Toker
I learned from him and he said sometimes a good dealer simply left holding the bag after a bad experience at another store.
00:49:12 Jon Toker
So many things go wrong before they ever set a foot in your store.
00:49:16 Jon Toker
So yeah, so that happens too, right customer?
00:49:19 Jon Toker
Comes from a different dealership.
00:49:21 Jon Toker
Yeah, where you bet about experience but.
00:49:26 Jon Toker
Good stuff, anything taught before you wrap it up.
00:49:29 Jon Toker
You want to add?
00:49:30 Jon Toker
I think it.
00:49:30 Jon Toker
Was a.
00:49:31 Jon Toker
Good conversation.
00:49:33 Jon Toker
You’re someone that I respect a lot and if about staffing, are you hiring people?
00:49:39 Jon Toker
Be looking for people to work for you.
00:49:41 Jon Toker
What’s the situation there?
00:49:43 Todd Bennett
Yeah, I mean listen, you probably asked that to every dealer that.
00:49:46 Todd Bennett
You talked to.
00:49:47 Todd Bennett
But and the answer would be, you know.
00:49:49 Todd Bennett
Yes, so I think currently we are looking for.
00:49:55 Todd Bennett
Or a service advisor.
00:50:01 Todd Bennett
I think Chris is looking for a sales person so.
00:50:04 Jon Toker
Christy ground nice.
00:50:06 Jon Toker
Chris is a phenomenal guy.
00:50:07 Jon Toker
You know.
00:50:08 Jon Toker
I wish maybe I’ll do a podcast with him too.
00:50:10 Jon Toker
One day.
00:50:10 Todd Bennett
Yeah you should, you should there.
00:50:13 Jon Toker
Is it good fella?
00:50:14 Jon Toker
So you’re looking for sales person and a service advisor and how do they reach you like?
00:50:18 Jon Toker
Where do they send those resumes or how do they apply for these jobs?
00:50:21 Todd Bennett
Alright, just send it to me directly, my.
00:50:23 Todd Bennett
Email is real easy.
00:50:24 Todd Bennett
Todd at chathamhonda.com
00:50:27 Jon Toker
OK, no spending jewelry.
00:50:28 Todd Bennett
You know, or contact external?
00:50:29 Todd Bennett
Website and in costs.
00:50:32 Jon Toker
Yeah, right, and Todd, if somebody has any questions, let’s say a young person wants to come into the car business and they’re looking for some questions like, not a mentor about.
00:50:32 Todd Bennett
OK.
00:50:40 Jon Toker
Like, you know, quick questions.
00:50:42 Jon Toker
Maybe a student currently a student in school.
00:50:44 Jon Toker
Or maybe you know we got a lot of students in this automotive business college.
00:50:48 Jon Toker
And they’re looking to get into the car biz.
00:50:49 Jon Toker
This, uh, you don’t mind answering people’s questions, right?
00:50:52 Jon Toker
If somebody shoots.
00:50:53 Jon Toker
You a quick email or they want to give you all a Todd all that stuff.
00:50:54 Todd Bennett
Good luck.
00:50:57 Jon Toker
OK, good because that’s the one of the things we I think need to focus on car business.
00:51:01 Jon Toker
As as as professionals that young people want to come into the business, I I think they should be able to reach us out.
00:51:09 Jon Toker
And hey, what do you think?
00:51:10 Jon Toker
What should I do?
00:51:11 Jon Toker
I think that’s.
00:51:11 Jon Toker
A good kind of stuff too because.
00:51:14 Jon Toker
Not very many people consider car business when they’re looking for a career, and I think it’s a very rewarding career and everybody wants to be like I gotta get an office job and like, yeah, it’s it’s good.
00:51:23 Jon Toker
But you know?
00:51:24 Jon Toker
If you’re a successful salesperson, you can go your way up and like yourself, right?
00:51:29 Jon Toker
You started as a salesperson.
00:51:30 Jon Toker
You made your way up.
00:51:31 Jon Toker
Now your partner, a dealership, and.
00:51:34 Jon Toker
I think it’s a lot more rewarding than just having an office.
00:51:36 Jon Toker
Job too right? And it’s.
00:51:37 Jon Toker
Fun, because there’s a lot more interpersonal relationships.
00:51:41 Jon Toker
So well, Todd, thank you very much.
00:51:44 Todd Bennett
My pleasure, thank you.
00:51:46 Jon Toker
We’ll keep in touch and thank you everybody.
00:51:49 Jon Toker
Watching our on listening our podcast today and next week.
00:51:52 Jon Toker
Todd, I’m going to have Dave Barber and Sam Barber from northern Honda.
00:51:56 Todd Bennett
All right, one right us.
00:51:57 Jon Toker
Oh yeah, it’s
00:51:58 Todd Bennett
Not a good dealer.
00:52:00 Jon Toker
It’s going to be an interesting because my concept is normally one on one and next week I’m going to have two to one.
00:52:06 Jon Toker
And you know barbers are, you know, they’re strong, you know.
00:52:08 Jon Toker
You don’t want to mess with them, so.
00:52:11 Todd Bennett
No no.
00:52:11 Jon Toker
You know their hockey, family, you know?
00:52:13 Jon Toker
They’re big hockey families, so you know good stuff, man.
00:52:18 Jon Toker
Thank you for your time.
00:52:19 Jon Toker
I wish you all the best.
00:52:20 Jon Toker
Hope you saw lots of cars.
00:52:22 Jon Toker
Oh Jeannie said good seeing you.
00:52:23 Jon Toker
But thank you Jeannie.
00:52:24 Speaker 3
Awesome, thank you.
00:52:25 Jon Toker
Jeannie my my boss Jeannie you.
00:52:27 Jon Toker
Know I I reported to her for three years, I’ll I’ll tell you something.
00:52:32 Jon Toker
You know, Todd, uh, I have to confess this.
00:52:36 Jon Toker
I thought I know how to reach financial statement before joining Honda.
00:52:40 Jon Toker
You know like because I worked in the business, I thought.
00:52:43 Jon Toker
But what I learned from Jeannie Trembley.
00:52:47 Jon Toker
It’s a lot and she really helped me how to analyze the data in a logical sense.
00:52:53 Jon Toker
And I thank you, thank thank you her for that.
00:52:56 Jon Toker
Then I wish everybody a great day.
00:52:59 Jon Toker
And, uh, talk to you guys later.
00:53:01 Jon Toker
Thank you very much.
00:53:02 Jon Toker
Have a great day, bye.
00:53:03 Todd Bennett
Thank you, take care bye.