Brian Benstock - Dealix Top Dealers Interview - Why Their Close Rates Are Over 24%

July 2004
Autosuccess Interview
By: Philip Luck

How long have you been in the Internet sales business?

Ray Lasczak: Five and a half years.

Tom Christopoulos: Six years.

David Handel: Six years already.

Mark Kanter: I have been in the Internet sales business for over five years; the car industry for over 11 years.

Robert Revere: Five years.

Brian Benstock: We have been serious about the Internet for only six months.

What percentage of your total new cars sales come from Internet leads?

Ray Lasczak: Approximately 15 percent.

Tom Christopoulos: 30 percent.

David Handel: Conservatively, the month of May accounted for 26 percent. I only count sales that are verified and sourced properly.

Mark Kanter: Approximately 25-35 percent depending on the month.

Robert Revere: 255 units, which is 35 percent.

Brian Benstock: 150 units or 25 percent.

What do you attribute to your high close rate?

Ray Lasczak: Immediate follow up with appointments set.

Tom Christopoulos: Responding quickly, and a no nonsense approach to doing business.

David Handel: Process, people, and a good lead management tool are the most important factors! Our process includes an auto response and six additional attempts (three e-mails and three phone calls) within the first seven days. Our emails are professional, yet soft-spoken.

If there is no response, the lead is placed in a folder that is bulk-email enabled. We send out two bulk e-mails per month – not too many and not too few. Follow-up can’t be over-emphasized! The average purchase time from the initial Internet inquiry is 60-
70 days. For every deal you close in two days there is one you can close four months down the road.

Nothing can be accomplished without a great team. You need an owner that believes in the Internet as an important advertising tool. Everything starts with Mr. Rosen and drifts down to my staff. I have dedicated Internet sales managers who handle the entire process from inquiry through delivery. My job is made easier with professionals like Debbie Storck, Lin Treasure, Phil Kwiek, Chris Petranech, Joe Crement, and Pauly Cassiani.

Mark Kanter: There are a few reasons that I can attribute to our process. 1 - I am lucky enough to have a wonderful staff that realizes that specific needs of the Internet client. They are focused, professional, and hard working. 2 - We also have a detailed process which we follow that, much like floor sales, must be adhered to in order to ensure: follow up, feedback, client satisfaction and sales. 3 - The most important aspect is the support given by the owners and president of our group. They gave me the opportunity to start
and maintain this department. Without their support and willingness to break paradigms - our successes would have never materialized.

Robert Revere: Good people and process and our Buzztrak lead management and CRM tool automates most of our follow up. Also, our people are well trained and our website is better than all of our competitors’.

Brian Benstock: A detailed process for selling the appointment and following up with customers, even if they don’t respond, don’t set an appointment, don’t show, or don’t buy. The majority of our follow up is automatically done by our CRM tool. Also, we use our website in the sales process to build value and to answer customer objections because it has a lot of tools that none of our competitors have.

What sales levels (percent of retail new) do you project from your Internet department this year?

Ray Lasczak: 15 percent.

Tom Christopoulos: 30 percent.

David Handel: Over 30 percent.

Mark Kanter: 30-40 percent.

Robert Revere: 300-350 and up to 50
percent of retail.

Brian Benstock: 200-250.

How do you handle the pricing question with your Internet prospects?

Ray Lasczak: Quoted at one percent under.

Tom Christopoulos: We always give them a price right up front (never our lowest), but will always condition the pricing with whether the vehicle is in stock; when they can pay for it; and when they want to take delivery.

David Handel: The pricing issue is a political hotbed if not handled carefully. It is something that I struggle with internally and externally. When my mental battle is over, I always choose to give an upfront price quote from the beginning. People choose the Internet to avoid a typical car-buying experience. The number one customer complaint is “not getting a price.” I don’t believe that price is everything. If you sell yourself and your dealership properly, you can overcome price (within reason).

Mark Kanter: Upfront pricing is always the best policy. If an Internet client thinks you are holding back, they can always turn off the computer or hang up.

Robert Revere: We have been trained to sell the appointment and not the price but if we have to we give them a fair price, we send them a multimedia “Why Buy Courtesy” Buzzmail.

Brian Benstock: We have a competitive pricing philosophy that also allows us to maintain a strong gross profit.

How does your Internet sales gross compare to your retail floor?

Ray Lasczak: $300-$500 less front end.

Tom Christopoulos: Lower to same.

David Handel: Total gross (front end, F&I, and aftermarket) is nearly identical. With so many (75 percent) retail floor customers having done some research on the Internet, we usually wind up in the same place but without all the grief and aggravation of the negotiating process.

Mark Kanter: It is approximately the same.

Robert Revere: Our gross is the same as our retail showroom and some months it has been higher because we build value rather than sell price.

Brian Benstock: Our gross average is $2,700 per vehicle, which is similar to our showroom floor.

Does your Internet department handle the complete sales process, F&I included? Or is it the same process as a floor customer?

Ray Lasczak: Same as floor.

Tom Christopoulos: Same as a floor customer.

David Handel: Our dealership (and 99 percent of others) isn’t willing to go down the F&I road yet. I’m grateful for what we are allowed to do and the autonomy we have.

Mark Kanter: The process is different until the actual sale, then it’s the same as the floor in terms of delivery, F&I, etc.

Robert Revere: They sell the appointment and the car but they do not handle F&I. We tried that and it hurt our back-end gross.

Brian Benstock: Our customer relationship center sets the appointments and follows up with the customer. The sales team sells the car.

Do you have a dedicated person who initiates calls and sets appointments?

Ray Lasczak: Yes.

Tom Christopoulos: Yes. I do.

David Handel: Yes.

Mark Kanter: No. All of my Internet sales managers field their own calls and make their own appointments.

Robert Revere: We have specialists who handle our phone leads to set appointments and the sales team sells the cars. Our Internet team handles their leads from beginning to end.

Brian Benstock: Yes. We have a team and it has grown as our business has continued to grow.

What key metrics do you measure to keep your Internet department improving? For example, close rates, appointment shows, cost per sale, ROI, etc.

Ray Lasczak: Close ratio and appointment show.

Tom Christopoulos: Amount of leads and sales

David Handel: Cost per sale is the most important to me. I also look closely at close ratio. Response time is important, but not as critical as following up on a regular schedule. In addition, I look at our personal website page views as a measure of how many and how long consumers stay on our site. Our websites are my responsibility.

Mark Kanter: We measure every quantifiable statistic to ensure that we are managing our department correctly and efficiently. The only way to ensure success is to measure your successes and failures.

Robert Revere: Leads, lead source, closing percentage, cost per sale, department profit.

Brian Benstock: Visitors to our website, leads, closing percentage, cost per lead, and cost per sale.

Can you share with us what those metrics are for you today?

Ray Lasczak: 17 percent appointment.

David Handel: Cost per sale is down to $201.26, compared to $450 for other media! Our group closing ratio stands at 12.7 percent. The Internet department accounts for a minimum of 26.3 percent of group sales. Website page views have risen from 26,000 to 90,000 + in my first year at Rosen Motors.

Mark Kanter: Those, I think I have to keep to myself. Sorry.

Robert Revere: Our close ratio is 22 percent and our cost per sale is only $165.

Brian Benstock: We have increased our closing ratio from seven percent up to 25 percent in only three months.

What is your view of third-party lead aggregators?

Ray Lasczak: Necessary part of lead generation process.

Tom Christopoulos: A necessity for building sales.

David Handel: Third-party lead providers are absolutely essential. In order to have a dedicated staff, you MUST give them the opportunity to earn a good living. A great Internet sales manager needs (and can handle) 125-175 leads per month. Be wary of lead providers that rely on unmonitored “mom and pop” affiliates that generate their leads through spam and pop-ups!

Mark Kanter: Third-party aggregators are very good, if you measure their success. If they work well for you, keep them. If they are not producing, then it is time to let them go. Like everything, you need to measure every expenditure.

Robert Revere: We get leads from customers that we would not be able to get otherwise.

Brian Benstock: We have a blended marketing strategy where we use third party leads and leads from our own website to get the best results. The aggregators combine the best leads for the lowest price.

What element of service do you expect from your third-party lead aggregators?

Ray Lasczak: We expect reps who understand our business and what we want to accomplish.

Tom Christopoulos: Quality of leads, scrubbed leads. Meaning good phone numbers and email addresses. I don’t like to waste my time.

David Handel: With nine franchises to manage, it is important that my reps at my providers are readily available and make necessary changes for me graciously and expediently. If I replace an Internet sales manager, I need each provider to change the contact name as soon as possible. I treat my reps with respect and I expect the same in return. Go the extra step for me and I will sing your praises.

Mark Kanter: I expect the third-party sources to enable adequate scrubbing procedures. My staff and I don’t like to field leads from Mr. Mickey Mouse or Mrs. Jane Doe. I would like the lead generators to check the leads for adequate information such as: email addresses, working phone numbers, etc. They’re the ones that will survive in the long run. The happier the dealers are, the more likely the third parties will survive.

Robert Revere: The most important thing is that their leads have a high closing percentage. We have eliminated all of the providers that don’t perform and that don’t have a low cost per sale.

Brian Benstock: I want someone who can help me sell more cars and make more money. Period.

Ray Lasczak is the Internet Director for Georgetown Chrysler Jeep. He can be
contacted at 800.601.3197, or by email at rLasczak@autosuccess.biz.

Tom Christopoulos is the Sales Manager for Lexus of Watertown. He can be contacted at 800.601.3198, or by email at tchristopoulos@autosuccess.biz.

David Handel is the Internet Director for Rosen Auto Group. He can be contacted at 800.601.3201, or by email at dhandel@autosuccess.biz.

Mark Kanter is the eCommerce Sales Director for Bill Jacobs Automotive Group. He can be contacted at800.601.3213, or by email atmkanter@autosuccess.biz.

Robert Revere is the eCommerce Director at Courtesy Chevrolet. He can be contacted at 866.873.0034, or by email at rrevere@autosuccess.biz.

Brian Benstock is the General Manager and Vice President for Paragon Honda. He can be contacted at 800.601.3214, or by email at bbenstock@autosuccess.biz.