New Generation DMS Selling Tools What s New & What s Worth the Cost

Transcription

1 New Generation DMS Selling Tools What s New & What s Worth the Cost Dealership DMS retail technology is advancing & forcing new decisions on dealers With Wayne Youngs Sr Executive Consultant at Dixon Hughes PLLC With Mike Bowers Executive Editor, DealersEdge

2 Wayne A. Youngs, Executive Consultant at Dixon Hughes PLLC Wayne Youngs is a Sr. Executive Consultant with Dixon Hughes PLLC. Wayne specializes in the automotive industry and has been assisting car dealers with process improvements, data processing cost recovery, and contract negotiations for the past 23 years. In addition for the past three years, he has also been helping Dealers become Gramn-Leach-Bliley compliant by doing in-depth GLB risk assessments that help dealers meet these new identity security procedures. He is familiar with billing practices and contracts of major DMS ADP, Reynolds & Reynolds, Arkona and UCS. Prior to joining Dixon Hughes 4 years ago, he spent 3 years with his own dealership consulting firm and 16 years with ADP the last 14 years as their Director of Sales in the Southwest. Wayne A. Youngs, Sr. Executive Consultant - Dixon Hughes P.O. Box 3853, Midland, Texas wyoungs@dixon-hughes.com

3 Dealer Services Group A new Big Picture in an ever changing DMS world! What Dealers need to know! -It is the best time to review processes - Shorten your contract terms -Protect against unexpected increases and generally control expenses. November 11, 2010 Wayne Youngs, Sr. Executive Consultant Dixon Hughes Dealer Services Group

4 Topics for Discussion A. Dealer Management Systems- Pluses & minuses B. CRM systems- their new direction C. New F&I game changer D. Phones Systems- DMS vs. 3 rd Party providers E. DMS archiving/scanning- 3 rd party alternatives F. Bar Coding- Parts/Vehicles- DMS provided or 3 rd Parties. G. Database & target marketing- maintaining your name files for success. H. Out-sources managed IT services

5 DMS Overview- Pluses & Minuses Review vendors that fit your dealership Understand there are a whole new set of rules with contracts and forgiveness of liabilities. Look at spend areas that might be consolidated with DMS vendor/leverage ( Maintaining Service & Quality) Hold vendors more accountable- in products & services - reduce expensive over-laps. Reduce or eliminate moving monthly DMS bills with negotiated capped variable expenses.

6 Evaluate your Dealership Software Applications- what do I have? What am I using. What should I add for better performance and compliance improvements. What is my vendor pushing? What should I sign for (be careful)? Control vendor signers and how apps can be added. Great time to make needed process changes without losing key personnel- limited places to go. Does this feel like your DMS bill?

7 Evaluate your Dealership (continued) If thinking about changing vendors remember (Keep it about Business not emotional & your Eyes wide open ) Know the $ cost to change (hidden costs) Identify needed 3 rd party associations & added costs involved for some DMS providers Contracts Terms (addendums)

8 If Changing Computer Systems Understand Conditions (know when to sign & how to protect yourself (dealership) ) Detail Vendor responsibility & dealership involvement of the install. (Clarify in the pre-site meeting). QUESTION Review new monthly computer bills- Vendors will try wear you down (address errors immediately) Reference Non standard to price changes. Review applications & audit equipment yearly

9 CRM Systems their new direction 3 rd party CRM vs. DMS provided CRM systems. Complete front end package Interfaces with DMS providers (push vs. push/pull) What do I lose when I convert over? Define applications that are deal breakers- have them demo d. Who are the current best of breed players in my opinion- Dealer Socket-Vin Solutions-Car Research-Advent)

10 New F&I game Changer- Doc-u-Pad Standardize F&I processes Must present all products to sell- talk track Compliance protection for presentation and declined services. Increased penetration of applications increased grosses. More customer interaction- quicker process. Bi-lingual offering (Spanish-Chinese) Very professional detailed final document.

11 Phone Systems 3rd Party vs. DMS providers On-site vs. Hosted Detailed RFP for vendors to achieve success. Consider Professional help Clarify questions on support vs. product enhancements. Name File sensitive VOIP vs. cost savings myth. Understand & question ease to administer.

12 DMS Archiving /Scanning vs. 3 rd Party 3rd Party vs. DMS providers- understand the difference Server based on some DMS vs. ASP/DMS included. Scanning outside documents/ Deal jackets. Understand the cost to convert when changing DMS systems. Outside Archiving allows simple DMS movement. Remove DMS exit barriers.

13 Bar Coding- Parts & Vehicle vs. 3rd Party 3rd Party vs. DMS providers- understand the difference. DMS interfaces- certified approved Costs Flexibility Initially Receipting Parts- expand to point of sale Bar Coding for new and used car inventories

14 Managed Marketing-Database Target Market vs. 3 rd parties. Name-file Management 3 rd party services vs. DMS provided applications /programs. Focus on driving added revenue through pro-active contact and professionalism. Minimize adding people use technology. Augment sales & service follow-up DMS flexible (3 rd parties) Name file clean up process (monthly) DMS applications for clean up - hard to use very ineffective.

15 Out-sourced IT services vs. DMS Providers and 3 rd party services. Cost effective & consistent Best of breed technology- pro-active not re-active as DMS providers. One stop shopping Minimize overlap and multiple bills Phone maintenance /network/pc s/ internet filtering/ /printers- all handled. Back-up protection After hours support same charge Increased Dealership security

16 Dealer Services Group THANK YOU Over the past 7 years my clients have saved in excess of $58 million dollars while increasing applications and functionality Wayne A. Youngs Sr. Executive Consultant- Dixon Hughes P.O. Box 3853 Midland, Texas wyoungs@dixon-hughes.com

17 Dealer Services Group 135+ Dedicated Dealer Services Professionals 20+ Members Fully Dedicated to Dealer Services 50+ Years Serving Dealers 1 Dedicated Dealer Risk Services Group About the Dixon Hughes Dealer Services Group The Dealer Services Group of Dixon Hughes, one of the nation s top 20 accounting firms, has over 135 dedicated professionals working exclusively with some of the largest dealerships across the country. Providing our clients with industry thought leaders in our Assurance, Tax and Risk Service Groups, we consult on best practices to help maximize efficiencies, decrease costs and understand risk management. Dealerships need an independent CPA firm to provide an objective view to take their business to the next level. At Dixon Hughes, we deliver on both sides of the service equation. A fact you might find a plus.