Tips from Top BHPH Sales Performers

Tips from Top BHPH Sales Performers



I work hard so I typically make anywhere from 150 to 250 calls a day I follow up with my planner so I'm following up with my customer base every day I've about five lead generators that I work with throughout the country so I talked to them typically on a daily or every other day basis to keep in contact with them to see what we can do better what's not working it's really just following up with customers and just it's massive action it's you can't do 25 to 50 calls a day you can't just wait for the people to come in for you it's taking relentless persistence and trying to find enough people that you can talk to on a daily basis it's a numbers game so you do okay so you do into it okay 100 250 cars our calls a day what's your ratio to like for the next day like how far how much of a lapse in time do you call the same person basically do you wait a day or do you do two to every two days well when it's a fresh lead we're calling that lead to maybe even three times a day if we can but once you've been working them for about two weeks you're going to start spread it out a little bit you don't want to wear them out too much but if they've given us the fact that they had that they have interest in our product then we need to start hitting them one to three times a day those first few days if we can yeah and another thing I want to point out one why are you talking about that is often obviously definitely don't want to just do just calling calls text messages emails you know kind of mix it up throughout the day don't just stick to one the main two we're gonna be definitely calling and text messages those are gonna be your two top priorities as far as turn get a hold of a customer if y'all are like me I get a ton of emails every day I pretty much delete most of them I don't hardly ever look at them you know it's just an old way of contact nowadays it's always phones and text messages or to the to top ways that I can get ahold of people I use social media I do a lot of Facebook and let go most of my leads come from Facebook and I post nine speakers and I just put a down payment and I get a lot of leads and I follow up with the leads once I start talking to them on Facebook what I do is that try to get their phone number I call them once I call them I get your name and I get a email address so I follow up with them by calling them by texting them by also emailing them that's that's good information of all the lead generating companies that you're using what are the five lead generating companies you're using them which ones produced the most quality leads I don't necessarily work with a specific company there's several bird dogs business referrals that I use one of which is Andrew Frederick he's based out of Ohio he works for a few stores he does Facebook generating I've got another Joseph Samuel he him and James Russell he's based out of Florida they do craigslist craigslist has kind of fallen off it's not as strong as it once was Facebook is is where all marketing should be at because you can typically hone in on a specific demographic on what you're looking for so it's not just because I have several business leads or business referrals doesn't mean that they're all like a big company though so are they paper lead type lead generators or I mean I understand Facebook and I think it's a probably a great Avenue but how do you get their phone number off a Facebook I lied asking for it obviously but 150 to 250 calls a day that's great work how do you get that many leads to contact on a daily basis so at bar honor we pay referrals to our different business leads so if and depending on what part of the country you're in it's based off of app it's based off of sale so if they're if you build that relationship with that referral they're gonna be sending you quite a few leads especially on Facebook when you're paying as a as a business referral they can go on and boost their page and at that point it's gonna once you start paying for those leads you're getting more leads put in and once they once we're selling the vehicle they're getting paid as well let me interject something really quick on this on this topic your mileage is going to vary on the effectiveness of this based on the States you're looking at some states have laws that pretty much prohibit it and some don't so your mileage may vary always check with your local rules then we got a question in the back so I have a kind of multiple questions that kind of can be for everyone everyone on the panel mm one question I have that is what's your radius so you do advertisement on like Facebook or something how far from your dealership do you usually go the second question is what's your general monthly budget to get these thirty five thirty to forty five cars a month what is your general budget you guys work with as far as distance goes we probably do about ninety miles outside of our radius in every direction that's probably you know every once a while we'll go a little bit further you know if the customer just really solid you know they've been at their job for a long you know time they've been at their residence for a long time they're buying their house or something so we'll definitely take that into consideration we don't ever want to tell anyone no right off the bat you know we try to find out a little bit kind of dig in a little bit and find out exactly would all they have if they're pretty stable you know we might take that chance obviously the you know down payment and all that stuff comes into play as well and what was the second part of your question I'm sorry the budget from our standpoint we budget somewhere right around about three grand a month as far as advertising now I will say this as far as advertising goes I stick to the basics it's always worked and it's and it's the most cost effective a lot of your third-party lead generators they really don't do much good for the buy here pay here business just because it's gonna be so far away it's way out of your distance it's it's just a waste of money you know you stick to your basic stuff facebook's a great one you know one thing that we do that's you know it's kind of funny is we do a a big like it's like a billboard type thing that you can change up the messages on all the time you know it's very cost effective doesn't cost you much money you can change it up with whatever specials you got going on just simple things like that TV and radio I feel like I've kind of died off a little bit as well you know it's just a kind of older market you you're gonna start reaching the newer generation and you got to get it and in front of them a different way you know more long lines of what they're used to which is going to be all digital in your buy here pay here board or your your advertising what are you focusing on down payment monthly payment car you don't want to focus too much on the down payment or the car just because you start kind of narrowing it down to you know you put 500 down on the board and then they're gonna all come in and they're all gonna miraculously have only five hundred dollars so you kind of keep it simple don't want to put too much warning up there cuz then it says too much but somebody driving by they can't read a whole notebook you know just the basics buy here pay here we finance trades welcome good credit no credit bad credit stuff like that you keep it simple it's real easy to read that you're driving by you know every once while we'll do a sales you know starting at X amount of dollars down or something like that but you want to definitely keep it basic and keep you always want to make sure and advertise the buy here pay here we finance no credit chicks and stuff like that you know those are things to kind of deter people whenever they're looking to buy car especially in the buy here pay here side they you know they getting a little nervous on the credit checks you know we get people in all the time like oh well you know my credit is really bad so if you kind of put that right up front then they kind of will be a little bit more willing to come and talk to you bill our dealer we don't have a budget I mean each sales individual is supposed to bring in their own leads so we use social media we use Facebook me in particular I use Facebook a lot I post a lot of cars and like he said I put less wedding I just put on it a down payment I also use let go where most of my leads come from from sort customers from previous customers from low balanced customers from former customers from referrals from references I mean these are all leads that you can call this our lease that you can work on these are all these that you can text daily budget was I've never asked so I don't know I don't give you wrong I'll answer for you you have a budget you just don't have to worry about it so I've heard you all kind of say that you guys use the down payment as as a as a option to use for your sales isn't that a triggering term so it would be possibly deceptive practices if if you don't have the other factors involved with it you know honestly I don't know the legalities on that standpoint I know every states kind of different there's certain things that you have to kind of do to keep in that just like I said I don't I don't know if every state's a little bit okay I will answer this one yes and no because it depends on the body of the ad you're using a trigger term like down payment you are supposed to disclose all of the other trigger terms in the deal if the deal can be representative it does not have to be specific to a unit but it should be respect representative as to what is available it should be disclosed somewhere in your ad in a conspicuous manner the the a chance are you looking for from me the one that everybody in the room does or the one that they should do ya know legally you're correct it is a non-compliant advertising piece if it does not include a disclosure for the trigger terms it that is correct and these can be worked into a professionally professional-looking ad it can be done without taking away from the value of the ad I mean shoot they're all over the internet just steal it they're there who's next let's go let's code right here you I saw your hand first nothing's guys loose no yeah we're 100% buy here pay here that's what we focus on that's what our inventory structured around you know if we get as far as like what kind of inventory do we carry or the like that the cost wise you know our cost obviously it's the markets on stuff it's really shot up quite a bit as far as vehicle cost on a truck you know it used to be somewhere around five six grand we're carrying roughly eight to twelve thousand dollar costs on the big SUVs Tahoe Suburbans all your bigger third row stuff truck wise as well car costs were somewhere in five to six thousand dollar range you know as far as total cost before you know you put your pack and you're recalling all that stuff Abilene they carry a pretty truck heavy mix you're in Abilene Texas you gotta have trucks any of you just do yeah trucks and big SUVs that's what they want they don't like that gas efficient stuff around there you that you just got to carry it they won't buy it they've tried it I've seen him try it so just adding a little flavor to that you were you've been waiting patiently ma'am no we do we do what we did we just barely started probably a couple months ago and the reason we do that is we we started using a new system to kind of help qualify our customers as far as to how much money we want to put on the street with them you know how much do they need down what kind of term to me to keep them at and so we started running that credit check now when we do that we tell our customers because they do get a little bit you know they're like oh well you're gonna run a credit check we're trying to kind of explain to them a little bit that it's not so much to see what their credits like but to to verify their job you know their job their residents stuff like that it's on the that credit app so we we use that as kind of a tool to help move it faster through the approval process and for the underwriting side not necessarily outside of tax season you know a thousand to fifteen hundred bucks is a thousand dollars is probably about average you know now and I've gone to a lot of different training classes and set forth and we've always kind of they've always preached you know a big down payment doesn't make a good customer and a low down payment doesn't make a great customer so you know that being said our average is somewhere around a thousand dollars outside of tax season once you were in on this our minimum down payment is four hundred we have three price range that we put our customers in and sometimes depending on the stability of the customer and depending on the ability whether they can afford the times they can afford the payment but we start with 399 does the minimum down payment that we require so our down payment start at $200 and kind of go up from there we we do a credit check as well the but one way we get around the credit check as in to not scaring the customer as we tell them that it's it's to help them establish or re-establish credit all right we want out we want to help them with a program to get them into a better situation so that being said we would typically do try to get at least a grand down that'll help kind of cover the TTL we do take $500 down payments in here this past couple months we've we've been taken and even then my owners been like hey you know down payments up a little bit but we don't really typically see a bigger repo rate with the lower down payment you know it's really a toss-up you know you try to do as much as you can to prequalify the customer to see how stable they are and and we like said we've picked up a system which is auto zoom to kind of help with that but there's really not anything that we've seen that's me either worse or better I can probably cut through this so we can get to another question the guy with the lowest repo rate is liked by a lot and they have the lowest down payment statistically speaking down payment doesn't drive loan performance it drives how much you financed and therefore the severity the loss when you do take a loss doesn't drive performance depends on the vehicle right so not every customer is gonna qualify for the Camaro with $200 down all right so I mean our average bi-weekly payment is 180 to 200 bi-weekly I've seen him at 125 I've seen him at 250 it depends on the vehicle okay this question is for Lane so what is the ratio of Internet leads to non internet leads because your internet leads are being fed by the franchise correct I say that one more time the internet leads that you receive are received or created and managed by the franchise not not solely okay so what's the ratio between Internet and the non internet leads if you're making 200 calls a day I would say a majority I'd probably say 75 to 85% of my leads is internet leads that are offered to you through the franchise that's going to be through the franchise that's gonna be through my business referrals my own personal leads it's it's gonna be all over the place the internet is the majority of the leads that's a good question I'm on a salary and I'm also on a commission base I'm on I'm on a tier Commission days so the 400 covers the taxes and all the other fees the only way that get paid on Commission is when the customer makes the affairs payment and most of our payments are either weekly or bi-weekly the first ten I made one I make 125 on the first 10 sales that I make so once the customer make their first payment that's when I get paid specifically for for each of you what are your repossession rates as far as a percentage our arranged works oh I'm trying to think of what my repossession rate yeah yeah you know what it is you could probably know better than I do you [Laughter] so when you generate leads from former customers what does that look like look logistic Li what's the process what do you say to them yes I do I do a lot I get a lot of leads from you know for my customers I mean customers who have already paid off the alone they they refer their family members their friends their neighbors their co-workers all the time we have a referral probe program where we give out $200 when they refer customers to us we do the same thing so throughout the sales process once they're finishing up we're asking them for referrals it's the the best time to get them because that's when they're happy so not to wear this out but are you telling me that you're uh you're a CV on some of the vehicles you buy like a truck so forth as much as ten thousand dollars and you're taking just a thousand dollars down to put that person in it that's a lot of money in the street that's just unreal to me but that's what you're doing yes yeah and really people in the markets change like I said I've been to buy here pay here business about ten years whenever we first started the down payment toward thousand dollars down and my a CV on a car was probably somewhere around three thousand dollars the expectations for the buy here pay here customer have gone way up and the down payments have stayed the same unfortunately where we're at the market is everybody else around me and there's a dealer there that's putting you know probably another about fifteen thousand on the street with that same kind of down payment the difference is is you got to had to kind of get with the times the down payments have stayed the same the expectation has gone up the markets just changed completely from the buy here pay here business within the past ten years other than lowering your down payment rate what were your strategies to reduce your a repo rate to reduce a repo rate like I said and that's what we're doing right now cuz we've looked at it we used to not do any kind of underwriting we just kind of just you know if they could fog a mirror we'd throw him in a car pretty much you know and that obviously doesn't work so we've tried kind of qualifying a little bit more really calling their job we ran across word before we never call their job we never called their their residents you know a lot of them would be they're about to be you know kicked out of their apartment stuff like that and so we've really tried to you know really qualify them a little bit more really call and verify that stuff and really kind of keep them honest that running their credit really helps out as much as well and then like I said we just got set up with a new program to try to help pull the you know whenever you meet someone you just like all they seem like they're pretty pretty good people we try to take the personal part out of it and leave it up to a system that will actually help us with that okay but yours is that 40% yours is at 18 so I'd like to hear what you have to say supreme – terrified not eating well as to what we've done is we we have a CH whereby we have an automatic draft where we take the money out of the customers account every week so that has really helped us to reduce our we feel an auto-pay is what you're saying yes ma'am how was barter we have some of the greatest collectors and in the country and in the entire industry so we do the auto pay we do the verifications we were doing the credit checks so we're we're making were crossing the t's and dot the i's right so but I mean it's it's our collectors I mean they're they're really good really that was my question as far as being able to receive lower down payments what would you attribute that lower default rate to and I was born during was a collections reason or the country under what was it and that kind of answers that question does GPS come into play at any of your three stores on every vehicle or just particular customers as far as do we use them yeah yeah we put a GPS on every vehicle we use or every vehicle we finance ours also has the automatic shutoff the starter interrupts so that way if they're in default after they you know with my collection people have tried to get in contact with them you know after a few days they're not returning phone calls you know you shut it down you'll be surprised how many people pick up the phone pretty quick and get a hold of you yes sir we do not use the shut down yes sir yeah the only compliant way to use GPS is all or nothing unless you have objective criteria which you don't until they've already been your customer you got to have a GPS if or you don't that's a different discussion but you can't go half way can't pick and choose who to use or which customer gets it we've been waiting really patiently Dave's been waiting a long time when you're attempting to get a customer from an internet lead or a phone up into an actual show up on the lot what kind of information do you get what kind of information should you get and what do you do to entice a customer to go from a lead to an actual up on the line well obviously the more information you get the better but as long as you're getting their name and their phone number at that point you can contact them what information do you want everything okay time on the job pay everything everything same I don't ask them too much I just tell them that hey come on in we can't work with you ask for their name and their phone number and I call them set up an appointment and follow up with them yeah every you know and every phone calls different obviously but for the most part you obviously you don't want to ask them too much over the phone you don't want to sit there and go through the whole credit app over the phone you know tell them hey get their basic information you know are they are you front wait where you from you know in the area you definitely want try to sell your your business a little bit kind of you know tell them a little bit about how you're different you know that we do a few things that we we do like you know $15 old changes free warranty a few things to kind of entice them to come you know to come in the main thing is to obviously is to try to set an appointment and get them in lock them down you don't want to answer too many of those questions over the phone obviously because then you know they have no reason to come in you know they've already gotten everything they need from you they'll call the next person so you know you can ask them a little bit you want to make a little bit personable you don't want to rush them off the phone and be on the phone for 30 seconds and then you know then they forget who you are so you definitely want to try to do a little bit but not too much as premiere sales people you get objections all the time what's the most common objection you get and how do you overcome it well I think that a lot of times we think that people have objections when probably a good seventy five percent of the time it's a complaint alright so if somebody if I'm showing numbers on a vehicle and they say well that payments too high yeah the payments too huh sign right here right so most of the time that that works it's it's a complaint nobody wants to pay X amount of dollars but there are objections and you've got it you've got to address the issue you can't just kind of fly by at all time you have to acknowledge that it exists but most time as a complaint I mean the way I handle objections I acknowledge it and I told a customer that hey we are here to help you we'll help you work to the objection and I tell them to go ahead and do that process you know typically depending on what I is a phone objection or is an install objection knowledge or objection and sure their customer that we are in we will seek their interest and we work with them go ahead sir right our our average payment somewhere right around the low 400s low fours high threes term wise we try to keep it somewhere around we love to keep it around three years obviously once you start getting to a little bit more expensive car you know fifteen nine sixteen nine 18 nine will stretch it 40 to the max I'll go is 48 months and like I said and that's gonna be on a newer vehicle lower mileage something that I know is gonna last a note obviously we wouldn't put a 48 month term on a two hundred thousand mile truck doesn't make no sense but so to answer your question low 400s on trucks and we're trying to work on that to try to get the payment up a little bit cuz you know everybody else everywhere that goes by your pager nard in our area they're getting $500 a month payment something that's right thing but on your trucks it's not $400 it's low fours hot low mid fourth yeah come on week stick pick up the payments I was wondering what are your top sources of internet leads Facebook I mean we we still get some from Craigslist offer up I think the strongest are from Facebook Facebook and Facebook when you post on Facebook post in a group section where you come at least posts in 10 groups and you get a lot of leads from the groups once in a while I use the marketplace but the marketplace really requires you to put a price and we about here pay here we don't focus too much on price we focus on down payment so the groups really works for me because I can post only the down payments in the groups definitely the math right and whatever it is were buying so no I have a really expensive stay-at-home wife so that helps a lot yeah no I before I got into this I was in the I had my own business with insurance and so I was making four to five hundred calls a day because it was all over the phone so the phones always been my thing so if there's downtime I thought should probably be calling that's how I tell I make my money I don't make money by going on a smoke break or where the case may be it's it's about building income you guys remember Dave Anderson's talk yesterday you know that employee he was talking about the self motivating self starter the ones you want that's what it looks like nobody has to tell him he has to do his job in the morning so it comes down to hiring you ya know what I was gonna I was gonna kind of chime in a little bit you definitely I don't know how you pay your sales guys but you obviously definitely want to put them on mainly Commission base you know you start put them on a salary base they get lazy I mean it's just the nature of the beast I don't care who you are if you know you're making X amount of dollars every month you're only gonna do you know so much work if you pretty much base it all on some kind of commission whether it's a flat fee per car or percentage of the down payment you have to put them on commission based that's really the only way you're gonna get somebody did they're either gonna starve because they're not selling anything and they're out or they're gonna hustle cuz they know hey you know in order for me to make a paycheck I need to sell something if I don't sell anything I just wasted my you know whole day doing nothing so Joe Powell no I we have a our planner that all of our leads are in where you can go in and you can click and call it but it won't automatically leave a voicemail and typically I'm not leaving a voicemail every time I call either that would eat up a whole lot of day and if in this generation of Millennials we don't listen to voicemails if I get a voicemail I flip it to the side unless it's Jim right calling me who's my President of Sales but outside of that I'm not listening to voicemail so unless it's a fresh lead I'm not leaving a voicemail we use the la socket I mean one great advantage that the la socket houses it has a list of opportunities where you can web the opportunities you can create your daily tasks like what I do when I come in everyday I have a list of customers that I have to call these customers after I call them I don't hear from them I text them if I don't hear from them I email them and I do that at least three times in a day so we use the last rocket as a CRM system I mean ours is like I was saying it's our planner it's it's nothing specific besides we call it discover so we can go in we can view all of our customers we can see a history of what actions have been taken with that customer and we can add to it so Adrian you guys use the serum no we uh we don't actually use any kind of CRM I've tried different ones in the past and I've never the sales guys that I've had they DS they're a little bit older so they don't use it I mean it is it's too much time for them I don't really have a younger generation that would be more apt to go online and punch everything in what I do I usually keeps for salespeople at all times five Maddox I'll go over them usually daily hey how many people do you talk to you make your calls they they like keeping track of everything just on paper and pen and that's fine with me as long as they're doing it I keep every one of them has a daily log sheet they'll log how many people they talk to how many of them they got to ride up how many of them got you know test drives and you know etc and then I also keep track of those numbers so that way at the end of the day I can match mine up with theirs and make sure that they're you know keeping track of who they talk to another thing I do I also do a lot of TOS as far as you know and let if they're leaving I want to know why before the before they're leaving the law you know have this somebody else get in front of them hey you know you know thanks for stopping by thank you for you know taking the time and coming to talk to us I want to make sure that you know Adrienne answered all of your questions make sure you didn't have anything else that he didn't you know speak about and that's the kind of these give us another person to kind of help try to keep them there sir we were paid off gross we're also paid for hitting certain metrics like if we have a certain amount of customers coming in and we're doing applications on them pretty much rewarding us for getting traffic in if we hit certain down payment amounts if we there's several different factors Lane did you mean gross profit or gross sales dress profit okay just want to clitter it's it's a tiered system so if we don't get anything if we don't sell 13 cars we don't sell 13 cars it's no no money if you sell 40 cars you're getting roughly 4% Jim OS is based on TS system I mean we have once you sell 10 cars we make 125 once itself from 11 to 15 cars you make 150 from 15 to 20 you make 200 and from 20 and above you make 300 we we play a flat rate and so it's for the first 7 it's 250 a car once I hit number 8 they reach it's a 350 bonus and it retros bet so then every car 1 through 8 350 it stays that way until they get to number 13 once they hit number 13 we pay them 450 a car now it doesn't retro back so it'll be from 1314 and up it's gonna be 450 a car we do adjust that during income tax season usually February in March just because the volume is so much more we'll cut that down will you know make those bonuses a little bit higher so the way we work whatever might call total cost is double it up rounded up to the nearest hundred and then we do twenty four point nine five percent it's our interest rate so like I said on that fifteen nine you're probably closer to the 42 to 48 month term most of the stuff that I keep at thirty six months is going to be anything roughly around ninety nine ten nine and below back the budget home thank you going back to the budget question just on Facebook alone what do you guys usually average on spend on marketing or you see spent marketing John Facebook do you get ya any numbers or ballpark so we don't actually I don't spend any money my sales guys are pretty good about they'll go and post on every for sale page on Facebook marketplace Facebook is honest Facebook and referrals are two biggest ways to generate leads Facebook it doesn't cost anything for them you know they'll go and put their own little template together they'll put a little bit of info about them or their specials or whatever we got going on they'll post it on their page they'll go and post it on all the for sale pages that are in the you know the local area every once in a while we'll run a some kind of a drawing I like to do a bunch of drawings giveaway stuff because what I'll do is I'll put on there hey you know share this photo you know or share this ad and get injured true drawing for $100 Visa gift card or something of that nature and what that does is you know it's everybody shares it it's it's you know it doesn't take but two seconds to share another thing we do is referrals like I said we pay everybody referrals whether they have a vehicle finance with us or not another thing that we like to do is pay all your franchise dealers shipped you know they know somebody that's selling cars they get turned down we offer them an extra hundred dollars so we pay two hundred all referrals to dealers we get a lot of dealer referrals just because you know that person is gonna go to that new car dealership they're gonna get turned down and then they're gonna have to go somewhere so you know your sales guys are a lot the the bigger franchise dealers are gonna be there are a lot more to opt to send them your way if they're getting paid 200 bucks for every one that gets old alright we got last question in the back sorry do any of you sell insurance with the monthly payment or you bulk it in we we have an option through CN AC who is our finance company it's a collateral protection it's depending on how their their payments are made whether it's semi monthly bi-weekly or monthly there is a fee with that it's not a liability coverage it's a it's a collateral protection I buy weekly it's $42 bi-weekly the monthly I want to say it's 95 we don't do we don't sell insurance hey bean hold that comment but now because it's coming that's how we are as of right now we don't sell insurance we we let them go and get whoever they want we're actually in the process of getting CPI and it's gonna be roughly about a hundred bucks a month you know insurance especially we sell to a lot of people with no driver's license just IDs and their rates are just through the roof and so they're gonna struggle with that payment and that insurance payment every month so if we put them on a CPI it's gonna be you know a lot more affordable and I feel like it's gonna be a little bit better as far as collection wise goes to we don't use one right now we're actually we just met with someone that we're trying to get set up with for that okay everyone what do you think so I can take it from your response that you'd like to see events like this in future shows you have a spring employees and things like that here get it right from the horse's mouth let's give these guys a big hand again they deserve it hey I'm gonna give you my two cents on these guys and it's real sure you know why they're on the panel because they're grinders no more no less nothing fancy they just do the push-ups thank you all I think next section starts in 15 minutes so travel safe

Leave a Reply

Your email address will not be published. Required fields are marked *