January 2008 - Feature
Setting the Pace for 2008
By Editorial Staff
Located in Park Rapids, Minn., a two-car-dealership town with a population of about 2,500 people, Thielen Motors sells an average of 102 Chevrolets, Cadillacs, Pontiacs and Buicks per month.
“We’ve had record revenues the past few years” said Anderson, who was appointed by Ted Thielen, the dealership’s owner, to head up the finance department nearly eight years ago. “To improve revenue, we’ve had to go to more of a niche marketing strategy.”
That niche is today’s credit-challenged consumers. And despite the cliental, Anderson said he’s able to maintain a 68-percent acceptance rate for service contracts, which he attributes to aggressive Internet and direct mail marketing strategies.
As for compliance, the dealership requires that all front-end employees are AFIP-certified. Each is also mandated to attend ongoing GMAC training in Detroit, Mich.
Anderson says Thielen Motors is also a “direct resolution conflict location,” which means he has the ability and expertise to help customers resolve credit issues to improve their scores. It is this expertise that he takes to the community.
Aside from his work at the dealership, Anderson volunteers to provide credit counseling and education to local high schools, Indian reservations, women’s groups and even some out-of-state organizations. He says most people don’t read the fine print on credit card contracts, so he provides people with tips on how to improve their credit standing.
In addition to teaching, the dealership also donates money to several local youth and high school sports teams.
Pro Chrysler Jeep
JOHN SCHENDEN, THORNTON, COLORADO
NOMINATED BY CNA NATIONAL WARRANTY CORPORATION
It’s clear to John Schenden that running Denver’s oldest Chrysler Jeep dealership for the last 16 years was accomplished by following a simple motto: “We want to give every customer a perfect experience every time.”
Located in Thornton, Colo., just north of Denver, Pro Chrysler Jeep remains a process-driven dealership. “Managers are involved from the time the customer comes in,” Schenden said. “We don’t want there to be any mystery people, so managers and F&I personnel introduce themselves to the customer.”
Schenden also puts himself in front of customers, with his office separated from the showroom by a glass window. “With the lack of industry sales in 2007, everybody has been dedicated to working with each customer a little harder than has been done in the past,” he said.
Despite a decrease in floor traffic, Schenden expects the attention his personnel gives to customers to result in an 18- to 20-percent increase in revenue from 2006.
Chrysler Jeep’s 50-percent service contract penetration rate can also be attributed to the dealership’s customer-oriented goals, according to Schenden. And with a 97-percent sales satisfaction rating, Pro Chrysler Jeep seems to be taking good care of its customers.
The next step for Schenden and his dealership is e-contracting, which should be up and running sometime this year.
Another key component of the dealership is community involvement, which includes participation in Outreach for Children and Ride & Drive for Colorado Schools. It’s also active in local, state and national dealer associations.
One project that stands out to Schenden is the company’s contributions to the Samaritan House, a 30-year-old non-profit agency that provides aid to needy families.
“The business is pretty simple,” added Schenden. “It’s all about the people, both customers and employees. If you treat each person the same, you’re going to get your fair share of the market.”
Monument Chevrolet
CARROLL SMITH, PASADENA, TEXAS
NOMINATED BY AMERICAN FINANCIAL & AUTOMOTIVE SERVICES INC.
Carroll Smith, president of Monument Chevrolet in Pasadena, Texas, takes a hands-on approach when it comes to his F&I department. “I think what mostly differentiates us in F&I is active involvement in day-to-day operations,” he said.
Part of that hands-on approach is requiring that all employees participate in periodic training. It also refers to set parameters Smith employs for each department. For F&I, Smith tells the department which lenders to use and what F&I providers to use. He also sets caps on rates and loan terms.
“Active management is the most important thing,” Smith emphasized. “Many times dealers will hire an F&I manager and say, ‘Do a good job.’ But they don’t keep an eye on them or follow up. We have a code of ethics that we expect the F&I department to adhere to.”
This strict code of ethics Smith refers to, however, hasn’t hampered his F&I department’s acceptance rate on vehicle service contracts, which stands at 58 percent. Smith said it really comes down to believing in one’s products.
“We start out with the basic belief that the product we’re selling is a real value to the customer,” he explained. “It’s a lot easier to sell something you believe in.”
To ensure that his dealership remains compliant, the dealership videotapes all transactions. This policy works two-fold, however, as Smith uses the videotapes to review his F&I managers’ performances.
Smith’s dedication to his community and his industry is as strong as it is to his own dealership. Currently, he serves as the National Automobile Dealers Association’s Region II vice chairman. He also finds time to volunteer for community organizations, such as with the Salvation Army and the local Boy Scouts.