The Power Of Words
Monday, November 24, 2008 at 10:40AM Copywriting is a skill all dealers should learn. The right words can make all the difference. Watch this video and see for yourself the power a simple change in words can have on response.
Don't Go Under: Survival Secrets From America's Most Profitable And Recession-Proof Retailer
Friday, November 14, 2008 at 12:48PM 
More bad news on the economy. Retail sales in the U.S. dropped in October by the most on record. 2.8 percent. The biggest since records began in 1992, according to the Commerce Department.
Macy's, Target, Gap, Best Buy all among the big losers.
But do you know that there's a retail company whose same-store sales are actually rising right now? Who....
It's Wal-Mart.
What are they doing that the others are not? How can they rally while others falter? And MOST IMPORTANTLY, how can you do what they do?
All answered right here. Read on...
Of course, you'll probably immediately grasp on to the idea that this is all about low price. Obviously low price is part of Wal-Mart's model. But Wal-Mart's low prices don't come at the expense of their margin. They've found a way to offer low prices, with high profit. That's what we're zeroing in on today.
We've compiled a "Top 10" list of the strategies Wal-Mart is using and has used to succeed in this bizarre market and we've spun 'em into ideas for car dealers. If you only read one email this year, read this one.
Wal-Mart rebuilt their brand around a benefit, not just low prices
Wal-Mart's message used to be "low prices everyday." That is a feature of how they run their business and what you can expect when you shop there. That's fine. But in the ten million plus dollar rebrand Wal-Mart has converted their feature-based tag line into a powerful benefit statement. The new tagline:Save Money, Live Better. It contains two benefits that people want.
Most dealers' brands deliver no benefit at all. No reason to shop there or choose them. Even franchise dealers who proudly display their big brand banners don't truly have a powerful, clearly defined positioning statement that resonates with the consumer. What do you do potentially better than anyone else? How does that benefit your customer? Tell your customers that.
Wal-Mart built a model based on repetition, not novelty
Most reports agree that Wal-Mart has 134 million weekly customers. That's a staggering number. We're pretty sure they all shop at our local store, and all on the same day, at the same time, standing in the same line. But that's another story. Wal-Mart's customer base is loyal, and they buy frequently and consistently.
How many car dealers can say this? Of course, with a span of 24 - 48 months between transactions, what can you do about it? If you have a service department, you could be doing business with your customers once every 3 months. Are you? And if you don't have a service department, you could offer all past customers complimentary car washes and fluid checks for life.
Cost to you? Not much. Benefit? Huge.
You should HOPE to have all your customers coming back to your store every week for a car wash and tire pressure check. If that happened, you'd remain at the very top of the customers' minds, you'd develop a high amount of "future purchasing debt" (meaning, they'd owe you their future purchases). And customers who return to the dealership frequently,BUY more frequently and REFER more frequently. Could you ask for anything better?
Wal-Mart creates value for their customers
These days consumers are more concerned than ever about VALUE. When most people think of value, they think of price. But that's only part of the equation. When selling dish soap, cheap microwaves, tennis shoes, greeting cards, and wrangler jeans, price may be your only option. But when selling transportation (vehicles and service) you're selling a high-ticket item that people are nervous about buying, that people place their faith and the security of their families' in.
There's a lot of room for value-building that goes beyond low price. Value can be found in the experience, in the confidence level of the customer, in a guaranty or warranty, in testimonials from past customers, in relationship with the customer, and more.
Wal-Mart doesn't offer low prices on everything. Some things are more expensive. But they capture the spirit of value creation by selling milk for cheaper than others, or offering 3 months of prescription drugs for $10, or by offering low-cost health clinics, or hair cuts, or tax prep, or photography, or eye glasses in their store. You get the feeling that the value is sky high.
What feeling do your customers get at your store? Do they leave feeling like they got MORE than they paid for or LESS? These days, you need to be striving for more or they won't come back, they won't refer, or they may not buy in the first place. So you either need to cut prices (not recommended) or add more value.
Wal-Mart owns their own customers
Wal-Mart is as powerful as it is partially because they own the customers. Those 134 million customers are their customers. They're not the customers of the manufacturers whose products are in the store! Wal-Mart owns the loyalty, the repetition. If the Sunbeam blender is .13 cents lower than the Hamilton Beach blender, the customer is choosing the Sunbeam. Whatever their choice, they're buying it from Wal-Mart.
Many new car dealers fail here because they let the manufacturer own the customer and maintain the relationship. Bad idea. Then they have the power, and you do not.Many independent dealers fail here because they don't bother at all with maintaining a relationship, so nobody owns the customers. You must stay in touch with your past customers somehow, whether through the mail, through events at your dealership, over the phone, in email, in person, preferably a combination. Wal-Mart has it easy because the customers come back into the store every week, and the relationship continues.
Wal-Mart has stayed true to traditional American values
Though Wal-Mart has many critics due to many of their "behind-the-scenes" business practices, the company is largely perceived to stay true to traditional values. Everything from DVD players that censor language and violence to their "buy American" campaigns of the 80s and 90s. Wal-Mart's reputation is steeped in the ideals of hard work, hiring from within, unbridled growth and a remarkable level of corporate frugality. Their culture has been described as "one part Southern Baptist evangelism, one part University of Arkansas Razorback teamwork, and one part IBM hardware."
Despite a growing "secular progressive" movement in this country, the vast majority of Americans feel a strong appeal to traditional "American" values. Highlighting your own alignment with these values through your marketing and communication with past and current customers can be a very powerful marketing strategy.
Wal-Mart values community and relationships
Although Wal-Mart gets beat up over their size and community impact, they really are a company that's about relationships. The word "always" can be seen in virtually all of Wal-Mart's literature. One of founder, Sam Walton's deepest beliefs was that the customer is always right, and his stores are still driven by this philosophy. When questioned about Wal-Mart's secrets of success, Walton has been quoted as saying, "It has to do with our desire to exceed our customers' expectations every hour of every day."
Duplicating Wal-Mart's stance on relationships would be a smart move for any dealer. The goal at your dealership shouldn't be to move a car today, it should be to get a customer and make a relationship today. With that mindset you can create a lasting connection with your customers and get them to come back more often and refer others. Without a relationship focus you'll be forced to run on a treadmill of sales now and end up with an empty shell of a business that's frail and susceptible to recession and outside factors.
Wal-Mart stays true to a core message
Wal-Mart has a message and they're sticking to it. They are, by design, a discount store. Wal-Mart's goal is to be cheaper than everyone else. So they do what ever they have to do to fill those shoes. Why? Because that's what their customer expects. That's why customers shop there. Wal-Mart is smart because they don't try to be everything and for everyone. They don't try to have beautiful, spotless stores and lowest prices or concierge service and low prices or even great service and low prices. Just really low prices and OK everything else.
What are you known for? What void in the market or customer desire does your store fill? Is it clear and obvious or are you just trying to be all things for all people? That does not work. People want to buy things from places that understand their unique needs. For dealers this could mean stores for women, stores for high-end cars, stores for credit challenged customers, stores for mid-life crisis, stores for kids' cars.
Wal-Mart uses systems to streamline costs
Wal-Mart is a master at innovating and implementing systems to increase profit, reduce costs, save time and streamline processes. Wal-Mart has been regarded as an industry leader in "testing, adapting, and applying a wide range of cutting-edge merchandising approaches." Walton proved to be a visionary leader and was known for his ability to quickly learn from his competitors' successes and failures. In fact, the founder of Kmart once claimed that Walton "not only copied our concepts, he strengthened them. Sam just took the ball and ran with it."
Dealers need to take a page from Walton's book and begin looking at what other successful business are doing right and wrong and learning from it and taking action on their findings. There are so many new, innovative and profitable approaches out there right now waiting to be found and capitalized on. This can be work but it's the necessary work that keeps a business innovating and moving forward. Sometimes it seems like the car business is a dinosaur that can barely keep up. That's not good for dealers or consumers.
Wal-Mart goes the opposite direction
One of Sam Walton's rules of success was to "swim upstream." Go the other way. Ignore the conventional wisdom. If everybody else is doing it one way, there's a good chance you can find your niche by going in exactly the opposite direction. But be prepared for a lot of folks to wave you down and tell you you're headed the wrong way. "I guess in all my years, what I heard more often than anything was: a town of less than 50,000 population cannot support a discount store for very long."
We call this Same Is Lame thinking. The reality is that the majority and status quo is usually wrong and only produces a modest level of success. For car dealers the mission is clear: reject what you see everyone else doing. And why not? Most dealers are in the pits right now. So, doing something opposite than them couldn't be a bad thing!
Wal-Mart places a high value in information
If you read 100 reports, books or articles about Wal-Mart's success, you'll find 100 instances of Wal-Mart's use of information as paramount to their winning strategy. They've pioneered completely new methods of supply chain management by leveraging the lowly bar code at every step of the process, from manufacturing, to distribution, to stocking, to merchandising, to promoting, to discounting, to selling...all the way down to the hour of the sale of each product. They now warehouse vast stores of information about buying habits and cycles, and from this information they make strategic decisions that crush their competitors.
Of course, this probably isn't practical for you as a dealer. But that doesn't make information any less critical. You just need to get it through different channels.
Networking and masterminding with other dealers, sharing data and trends, or accessing the vast amounts of information on buying and marketing psychology like you'll find in the Rich Dealers program. Or, here's a novel idea, visiting the bookstore or the library and getting information from there. Information is your number one defense against slumping traffic and sales and your number one offense for dominating your market. What information are you relying on?
A valuable resource you need to make it in times like these
That leads into a very important point. A resource you should all be very well aware of by now. If you find value in information like this, and you believe your business would be better, and you could survive longer with two guys like us in your corner, whispering the best strategy in your ear at the perfect moment, keeping you on track, in the game, growing and not slowing....well, next week will be a big week for you.
Next week, for one week only, our Rich Dealers program will open its doors to the dealer public at large for one final enrollment period for 2008. If you've considered it in the past, but haven't acted, next week will be the moment. So keep a keen eye out next week for the messages from us.
Until next time, we're looking out for you,
Jim & Travis
Creators of Gravitational Marketing and founders of the Rich Dealers program
Would you have quit this job at a Toyota store?
Thursday, November 13, 2008 at 12:52PM 
Today, we have an even crazier story for you. This is about a guy named Mike in Lousiville, KY. He was a GM at a Toyota store. That's right, we said "was." Wait until you hear what happened to him. Here's the email he just sent us:
"I've always have had a great deal of success in this industry, but like many have lacked the direction and focus needed to utilize my media dollars wisely. Thanks to you and Jim...I've seen the light, and that light isn't in the new car business, constantly being controlled by the market and the manufacturer. In fact in September, with the proper execution of your radio buying process not only did I buy the right spots, but saved a ton of money. The results were "GREAT"...we delivered over 53 used units, 35 of which came in a down market with your 10 day used car campaign and a small budget. A bad market, I forgot to tell my customers and employees.
"Your program has given me the spark and burning desire to take it to the next step. After 30 years of an unbalanced life with long hours, blood sweet and tears, and making someone else rich, now it's my turn to reap the loin's share."
So what did he do??? Yeah, you got it right. He LEFT the Toyota store to start his own gig. In THIS market!! Is he crazy?
Here's what he said about this:
"I'm in the process of opening my own Used Car Super Store. Despite the fact that the majority of my contemporaries think I'm out of my mind resigning from a brand new Toyota store. I truly believe now is the best time to do it. Like the stock market; you don't buy when everything is high."
So, while other dealers are running around, freaking out, pissing their pants, spending all day hitting refresh on their computers waiting to see what the fed, the stock market, or GM is going to do next..... This guy walks out of a killer job at a profitable Toyota store, AFTER a great month.
Why? Well, the answer has everything to do with what we were talking about the other day. See, Mike realized that he could only control so much as a GM. But he had learned so much about how to create traffic, at will, how to spark sales out of thin air, even in a crap market...he decided to take complete control and invest in his future now, while everyone else is ducking! Bravo, Mike.
Of course, Mike has something you don't have. Really, it's not fair. It's an unfair advantage. He has a support system most dealers don't have. He's plugged into a network of fighters and survivors, guys who are willing to share the good stuff. Plus he has two marketing aces in his corner loading his plate with useable, simple, cost efficient strategies to getting traffic and closing deals. That's a pretty powerful thing.
Now, as we mentioned the other day...next week we'll be opening up the Rich Dealers program for 1 final open enrollment period for the year. We're under advisement from some pretty well known business advisors, people we call our mentors, to raise the investment for Rich Dealers to $699 per month for dealers joining after the first of the year.
Without going into too many boring details, essentially it's a way of ensuring that the dealers who get involved are serious, and not just curious. In a market like this, we really need to be picky about who gets involved. It's not a life preserver. It's a business improvement system. Not a get rich quick scheme, but a get rich by methodically making calculated and strategic decisions.
To be honest, we're not completely sold on the idea.Of course, we'd love to capture the extra revenue, but raising prices is a strategy most people resist at first. The point of telling you this is not to beat our chests and say sign up now or else!! As we said, we may not change anything. But, the discussion is out in the open. So, be warned of possible changes beginning in 09.
All this is a way of saying....next week may very well be THE time to get involved. You'll be guaranteed to lock in at the lower rate PLUS you'll get to talk to Mike directly and ask him questions about what he did, how he did it.....why he did it!!
Here's something else....as a member, you'll get to speak to us directly, privately for us to work together on your business. That in and of itself is quite a valuable benefit.
"I Can't Wait For Things To Get Worse"
Tuesday, November 11, 2008 at 12:43PM 
We know it sounds crazy, but we just hung up the phone with a dealer named Tim who said those exact words. Incredibly, in the middle of the worst year in the car business in 20, maybe 30, years he just wrapped up his best month ever! He sold more than 100 units last month and is already coming out of the box strong in November.
We know, it's absolutely amazing...but really it's not that rare, which is why we're writing you. We've been helping car dealers just like you for 10 years now. There have been some ups and downs, but nothing like this. And this "crazy market" has definitely had us laying awake at nights, dreaming up new ways to help all you guys survive right now and make it through, thinking of ways to help you do what Tim is doing.
First, you need to know that we're not trying to sell you anything. Quite the contrary. We have no hidden agenda. Our motives are very clear. All we want to do is help you, if you'll give us the chance... Understand...
2009 could be your best year ever or your worst year ever. . . it all depends on YOU!
It seems crazy, but we actually know a number of dealers right now who are not just "staying afloat" but actually doing well during this frozen market. The best part is that they're doing it in the midst of the election, the negative news on TV every night, locked up credit markets, while everyone is singing the blues and saying it's the worst market the car business has ever seen. And it's true. Things are changing...
When we emerge from this bear market we predict the car business will be changed forever. For better or worse. But things won't just go back to the way they used to be. Not this time.
Of course, time for a reality check...it just may not be reasonable for you to expect to have your best month ever right now. But hell, how about just doing as well as you were doing a year ago, or even 3 months ago. Most dealers would be elated with that.
Well in spite of all the bad news, we have a small, savvy, contrarian group of dealers in towns all across the country (big markets, small markets and every size market in between) who are continuing to stay on track, remaining profitable, having fun, and moving forward.
Our question is, "Will you let us show you how they are doing it?"
In this email, and in a few others during the next week we'd like to pull back the curtain and shed some light on some of the methods being used by these "mutant" dealers, and let you in on a few secrets in the process.
In won't cost you a penny, and in a matter of just a few minutes per day, things will all start to make sense by the end of next week...
Let's begin with the first thing you MUST understand.
The current auto market meltdown could be the single greatest opportunity ever in your career in the car business. . .
The car business is off about 35% across the board. Some markets, some segments, some dealers are seeing more like a 50% decrease. But dealers everywhere are exiting the scene. Small dealerships are closing up. Big dealerships are cutting back. Some mega-dealers are disappearing in a puff of smoke. In typical knee-jerk reaction, people are acting like it's the end of the world. Of the dealers who are still in business in your town, 80% of them are so beaten, battered, discouraged and mentally defeated that they just can't muster up the energy to compete anymore. They're tapped out. Running on empty.
On top of all that, their attitudes are terrible. Just look around and listen at the auction. What do you see? Dealers barely hanging on, complaining...or in some cases, just sitting on the outside, paralyzed by fear. These are the folks who have bought hook line and sinker into the negative headlines the fear-mongering media is pumping out. It's so bad that they've completely given up and are now just waiting for the grim reaper to appear, looking out the window, seeing the hearse pull up their drive to pick them up.
The reality is that only a small sliver of the dealers out there understand that people are still wanting, and buying cars, deals are still getting done, and the pie --- for those who are willing to keep fighting --- is actually increasing in size, not decreasing, since it's being split up between far fewer "participating" dealers. At different times, under different circumstances, it may be easier or more difficult, but still, under all circumstances, at all times, money moves around, changes hands, gravitates to the person with a system for attracting it.
Are we saying this is easy? Are we saying anyone can do it? No! Without a doubt this is the most challenging time we've ever seen in the car business. But all challenges come with opportunity. And the tougher things get, the better off the survivors will be in the end.
Is this more of that "positive thinking will set you free" mumbo jumbo? No. . .it's actually much, much bigger than that!
Before we go any further, let us tell you this isn't just some feeble ploy to pump you up and motivate you to waste time and money on some futile attempt to stay in business. This ain't one of those "glass half full" pep talks. Of course, your attitude toward the situation is important, but it isn't everything. It's where it all begins, but that's about it. If you don't immediately grasp the power of what we're telling you, then you may want to consider packing it in for good, or taking a long vacation until things get a little better.
Why would we say such a thing?
Not to be mean, just to be honest and fair. If you can't wrap your brain around this idea, and see this situation as an opportunity, and not a curse, then our ideas probably won't be of much benefit to you. But if you do accept what we're telling you and are willing to be open to the idea of success, even in this market, then we're going to offer to send you some highly valuable and helpful information now, and over the course of 2009, and it won't cost you a single penny. But we're getting ahead of ourselves. Before we get to all that, please consider something...
Really think about the conditions. . .
Right now, we're seeing a perfect storm churning that just may turn into the biggest turnaround of your life. The auto market has been contracting for two years. The credit markets (thanks to the tax payers' generous $700 billion bailout) will soon be loosening. At some point, all the pent-up demand will come rushing forward. All those buyers who have been sitting on the sidelines since the beginning of 2007 will soon cave in and buy a car. And it's all likely to begin in 2009.
Most of history's greatest fortunes have been made when everyone else was stricken with fear. But only those people "in the game" when it happens will benefit from this onrush of excited buyers. And who can predict exactly when it will happen? Nobody. And most dealers will be busy counting their cutbacks when it happens, and the spoils will go to the few guys with the guts to stick it out. Sad, but true.
Warren Buffet said it best, "Be fearful when other people are greedy...and greedy when others are fearful." Have you ever seen the level of fear in this business higher than it is right now?
Now is the time to prepare and lay the foundation for what is to come. . .
You've probably heard about our Rich Dealers program in the past. This is the premier solution used by dealers around the country to "sharpen their axes" - meaning, to improve their customer attraction, retention and referral processes to the point of highest efficiency. We're not writing today to try to "sell" you into the program. In fact, you can't even join this week. We only accept new members during certain "open enrollment" periods that occur a few times per year. Next week happens to be one of those periods, by the way, so you may want to begin considering how you'll respond when given the opportunity to get involved.
The opportunity and the ability is inside you.
Most dealers look to external forces to determine their fate. The government, the auction, the manufacturers, the banks, the alignment of the stars. But your fate rests in you, not in your environment. The course you pursue is the course you choose. You must elevate your thoughts, your expectations, your confidence to the point where external factors cannot harm you. Your ability to adapt and compete is determined by your willingness to prepare and improve.
Now is the moment to decide that you're going to make a real, live effort to kick your business into high gear in 2009, which begins right now.
Besides, what's your alternative? Bankruptcy, get a job at another failing dealership, become a fugitive, get a job waiting tables. None good. Please realize, we're not saying these things to pump you up or to scare you. We're saying this to cause you to understand that you're in charge, you decide. You don't have to cave in to the heavy emotions surrounding this market. You don't have to embrace fear and accept defeat. Other dealers are succeeding, and you can to. And even if you don't believe you can have your best month ever, at least endeavor to get back to what you were doing 3, 6 or 12 months ago. You can do that, can't you?
The best part is. . . damn right you can!
It's within your reach. All you have to do is believe it, clearly define an effective strategic plan and apply massive action to making that plan a reality. Life does not get better by hope or fear...it gets better by planning and acting!
So, don't bother yourself with getting pumped up. But do bother yourself by taking the time to click that link and request the fr-ee newsletters and training programs. And do begin thinking about how involved you'll choose to be next week when we open up the Rich Dealers program for the last time in 2008.
The level of thinking that got you where you are will NOT get you where you want to go!
Truth is, 12 months from now you'll be somewhere. But...where? If you crumble under the weight of the negativity, you likely won't be in the car business. But one thing is for sure ---- many dealers will still be in the business. And by then, they just may be making hay again. Won't you kick yourself if you miss it?
Of course, is attitude the only thing you'll need to make it through? No, but it will get you started. Past that, you'll need one or two good, reliable methods for attracting customers and a system for maximizing the customers and traffic you already have. It's just a few small pieces that are missing.
Many dealers wonder, "Why, if it's so simple, don't you just write it right here in this email?" Great question. Because, if we gave you the simple solution right now, you wouldn't believe it, you would just brush it off and go on with your day.
You must EARN the right to learn the information. You earn it by first determining that you WILL stay in and fight and NOT give up or give in. And frankly, you earn it by demonstrating a willingness to pay for the information. Because fr-ee advice is bad advice that you won't listen to. But when you pay for it, especially these days, you'll be far more likely to take it in, and implement. It really is for your own good. But that's a discussion for another day...next week maybe. But get your "thinking about it" out of the way now so you'll be ready for action then.
Our suggestion is that you get your attitude and mindset on the path to becoming unstoppable. Then begin developing the definite plans, strategies and skills to make it all happen.
Until next time, we're looking out for you,
Jim & Travis
Creators of Gravitational Marketing and founders of the Rich Dealers program
P.S. If there is anything at all we can do to help you during these challenging times, please call us at 1-800-930-7194 (ext 0). We would love to see you turn things around and experience some of the same great successes that many of our clients are having right now.
PPS There is absolutely no charge for a "hidden wealth" consulting call. And if you'll take the time to pick up the phone and call 1-800-930-7194 (ext 0), we'll schedule a time for you to speak to one of our Rich Dealers advisors.





