If you think that the concern over "More Sales" rather than "More Declines" is not becoming clear to the automotive industry, then you haven't been in an Automobile dealership lately.
As we recently reported in a previous issue, auto dealers were extolling the virtues of "more sales" and how unhappy they were with the level of check declines that they were receiving from some Check Guarantee companies. These views were expressed at the February NADA (National Automobile Dealers Association) convention.
The following story from Bob Miller, owner of California Bankcard Systems and one of the earliest ISOs in the business, will make this point even more apparent.
"I was recently passed a lead from CrossCheck, Inc., one of the industry's leading Check Guarantee companies, to call on an auto dealership in San Diego that was interested in Check Guarantee. The new manager in this dealership had previously been employed at another auto dealer that had been a CrossCheck subscriber. I determined that the dealership had been 'Guaranteeing' about $315K in checks per month with their current check provider, NPC. During the two months preceding the sales call, the account had received 37 declines from NPC, and this new manager was interested in pumping sales. I was able to sign up the customer, due both to the fact that the decision maker had previous experience with CrossCheck, and because I was able to give the dealership the '50% Fewer Declines' guarantee.
"Well, with my first residual payment I noted that the dealership increased its volume from $315K to over $400K. The manager, as well as the sales staff were all thrilled with the program. Now, I would like to tell you that this customer came on the CrossCheck service flawlessly without any problem, but, of course, this didn't happen. In spite of the adjustment that all Automobile dealerships seem to experience in going to CrossCheck from some other Check Guarantee service, acceptance of the bottom line benefits of increased sales, quickly out weighed the changes in approach, and higher cost.
"I was asked back to sign up a second location, and with my recent rebate check I was happy to see that the second location had an even greater sales increase experience. This location went from $300K to over $500K in volume. CrossCheck, of course, paid my office a monthly rebate of over $1,300 in February 1996, with the first location's volume qualifying my office for another 5% rebate on all my historical sales (which have accumulated since 1986), for the month of October, and the second location giving the same 5% bonus for December, with $292K carried into January 1996 for a third 5% bonus.
"It is truly nice to see such a win-win situation. The customer is thrilled, their sales representatives are thrilled, the consumers that are able to buy cars due to CrossCheck's aggressive Down Payment and Multiple Check programs are thrilled, I'm thrilled with the major boost in income and, of course, CrossCheck is happy to have won another great account. Most of all, however, the new manager became a hero in his dealership for finding this opportunity for increasing sales. The Manager, Hugh Morris, understands completely that the name of the game is 'how many cars can you sell,' not, 'we have an enormous negative data base, so can we please turn down more checks for you.'
"Clearly, it is nice to have references from accounts that like you. It's even better to have someone who likes you enough to stay with you as they move from one company to the next, as in this story. What makes the real difference is virtually everything that CrossCheck does makes the subscriber's sales stronger and life easier.
"In another recent sales call, as an example, my prospect had just talked to the Penske Corporation, the nation's 5th largest Mega Dealer and a CrossCheck subscriber. Penske said of CrossCheck in their reference call, 'On a scale of 1 to 10... CrossCheck is an 11 1/2.' "
Bob Miller,
Owner
California Bankcard Systems
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