After the Wall Street Journal’s commentary by JD Power III regarding the need for change in our industry’s franchise system, many automotive groups and leaders reacted with passionate disagreement. Among those taking an opposing view were NADA and Consumer Reports. Rather than debate what may or may not happen in 15 years, let’s discuss what’s happening right now and determine whether or not we need to change.

Have you ever heard the saying, "Keep doing what you’re doing and you’ll keep getting what you’re getting?" The real concern is that some people in our industry believe they can keep doing the same things over and over again and eventually the results will change. Ask yourself this question: Doesn’t that kind of thinking describe stupidity? Let’s see, according to Webster "stupidity" is "Marked by or resulting from unreasoned thinking or acting". I guess if you’re expecting customers in 15 years to continue to buy from you the same way they’re buying from you today, then the above definition may apply.

There is no doubt that customers want the industry to change the way it does business. Lead generation by Internet providers like Dealix and Autotrader.com alone has increased 25% during the last year. And broker or “hybrid” leads have a closing ratio of 26%. That’s over 10% higher than the national average for dealer salespeople. Like it or not, most customers don’t like spending time at the dealership, so they’re doing more of the "left brain" work before they get there. Let’s not worry about what it will be like in 15 years! Big changes are happening right now!

Here’s the bottom line: Those dealers who commit to customer focused processes will still be profitable regardless of the changes in the frachise laws. As technology and quality continues to improve, customer service will be the only designation by which a dealer will be able to significantly impact their market. In his book, Relationship Selling, Author Jim Cathcart sums it up by explaining that when there isn’t much difference between your product and everyone else, there had better be a big difference in the way you treat people.

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