MultiPage PDF File - psada

4
The Puget Sound Dealer
Official Publication of the
Puget Sound Automobile Dealers Association
16101 Greenwood Avenue N Bldg 2100
Seattle WA 98133
Phone: 206 542-3551
Fax: 206 542-7561
Email: jim@psada.com
www.psada.com
President
Mark Westlund
Westlund Buick Pontiac GMC Truck, Seattle
1st Vice President
Wayland Scarff
Scarff Motors, Auburn
2rd Vice President
Phil Bivens
Auburn Chevrolet & Puyallup Chrysler
3rd Vice President
Craig Campbell
Campbell Nelson Volkswagen, Edmonds
Campbell Nelson Nissan, Edmonds
Trustees
Sue Byers
Bob Byers Volvo, Seattle
Jason Courter
Honda Auto Center of Bellevue
PSADA Staff
James R. Hammond
Executive Director
Don Schultz
Director of Education and Development
Ron Olson
A-YES State Manager
Joyce Nichols
Executive Assistant
Linda Halverson
Office Manager
Susan Leonhardi
Secretary
Dawn Mylerberg
Secretary
For information on advertising in this
publication contact Jim Aitkins
Blue Water Publishers, LLC
360.805.6474
Inside
this
Issue
A Message from the Editor
The Words From Your Mouth
One of the most impressive men I have ever met in
my life was the late Stanley O. McNaughton, President of
Pemco Insurance. Stan was indeed a great friend and mentor
to me. Every morning Stan would walk through his
entire company and say hello to his employees. You know,
he knew them all by name. There were hundreds of them. And he knew things
about their lives and interchanged conversations with them about things that
were important to them. Certainly the return to Pemco was employees that
knew that the man at the top cared about them and was sincere about it.
We can all learn from Stan’s great example. He knew that words from his
mouth could have great impacts on other people. He chose them wisely and
used them to build up people. One of Stan’s greatest quotes is “Multiply your
strength by the number of people around you. Make them look good, successful,
and of value to others. You will never have to worry about your own success.”
This philosophy is standard fare for many of our dealers. But, if you
haven’t tried it, begin today. Walk through your dealership everyday. Learn
about your people. Let them get to know you. Let them know that you personally
value them “personally.” Let them know you care about their best interests
and that you are sincere about it. You will find this daily activity exciting and
rewarding. Dealers that do this already know how this builds loyalty and productivity.
Love your people and remember the words from your mouth do have
an impact on people around you.
Jim Hammond
Executive Director
7 Message from the President - Mark Westlund
8 Termination Checklist
10 Pete Calkins - Exciting! Experienced!
11 Growth and Expansion at the Professional Automotive Training Center
13 Developing and Retaining Loyal Customers
14 Steve Klein: The Gift of Giving
18 Creating an Energy-Efficient Dealership
21 The Entitlement Generation - Strategies for Hiring Generation WHY
22 The Old Rules Don’t Apply!
25 The Best of NADA 2007
29 Coffee Break
32 Meet Your PSADA Team

Message from the President
Mark Westlund
Westlund Buick Pontiac GMC Truck
Phase II...Here We Go!
Back in 1977 when my dad, Warren Westlund, was president of the dealers association
the first seeds of the Professional Automotive Training Center (PATC) were planted.
Those were exciting days as the dealers looked forward to growing their own technicians.
Most certainly their hopes and dreams came true greater and larger than they
ever expected. Today the PATC is recognized nationally as the cutting edge of automotive
technical training in the nation. It’s hard to believe that so many years have passed
since my dad has been president. Now I am president and I have the honor of being part
of this great project and its next exciting step forward.
I am proud to announce that we expect to break ground on Phase II of the PATC
this November which will expand the present facility by 24,000 square feet. The expansion
couldn’t come sooner. The demand for admission to the PATC’s manufacturer-specific
programs is immense – well beyond its present capacity. The expansion will more
than double our ability to train new techs for our stores. It will also help us provide
more training space for the auto manufacturers who train up to 10,000 techs a year at
the PATC. Plus, it creates more opportunities for us to accept into our manufacturerspecific
programs the hundreds of AYES students that will be coming our way out of
high schools over the next several years. The PATC is very good news for all dealers.
We are fortunate to have it right in our own backyard.
7

8
Termination
Checklist
By Thao Tiedt
Ryan, Swanson & Cleveland
Before terminating an employee, review this checklist
to see if you have your ducks in a row. While employment
in Washington is at-will, you cannot terminate an employee
for an illegal reason, such as discrimination, or in retaliation
for the employee having exercised a legal right, such
as reporting a safety violation or filing a workers’ compensation
claim. In order to avoid discrimination claims, it is
important to be consistent in how you treat employees. If
you answer no to a question on the checklist, it does not
mean that you should continue employing the employee.
However, you may want to consider the matter further or
get legal advice.
• Is the employee a member of a protected group (minority,
pregnant, disabled, etc.)? If so, is the employee
being treated the same as members of non-minority
groups?
• Remember, if the employee is separating due to illness
or pregnancy, he or she may be entitled to family leave
and it may not truly be a resignation.
• Was the rule or policy the employee violated a published
rule? How? Where? When? If the violation was
not published, is it a serious enough matter that a reasonable
person would agree that the employee should
be terminated?
• Did the employee ever receive a written copy of the
policy? For example, in a handbook or employee orientation?
Was the rule posted?
• Have any other employees violated this rule or policy?
If so, did they receive the same disciplinary action? If
not, can you articulate a good reason why this employee
is receiving harsher discipline? Some good reasons
are because this was a repeat violation, the employee
being terminated is a supervisor and therefore has to
lead by example or that this employee has been troublesome
for some time and this is just the last of a
long line of issues.
• If the decision to terminate is based on poor performance
has the employee been given the opportunity to
improve? Can you document your coaching sessions
with this employee?
• How long has the employee been employed? The
longer a person has been employed, the more chances
a jury thinks the employee should have to improve.
• Have alternatives to discharge been considered (change
of position, transfer, education)? However, demotions
are seldom wise or work out.
• Has the employee received warning, verbal or written,
previously for violation of this rule? By whom? And
was it documented? (All documentation of verbal and
written warnings should be retained in the employee’s
personnel file)
• What was the employee’s prior disciplinary record?

• With whom will the employee be replaced? If the
employee being terminated is over 40, is the replacement
substantially younger?
• Does the documentation in the personnel file support
the termination?
• Has the final decision to terminate been reviewed by
Human Resources or legal counsel (if applicable) to
ensure uniformity and consistency of treatment?
• What considerations need to be made for compensation,
i.e. additional pay for earned time off, 401K or retirement
benefits, etc.?
• Has payroll been contacted with this decision in order
to adequately prepare final compensation? However, in
Washington you do not have to give the terminated
employee his or her final check at the time of termination.
You can issue it on the next regular payday and
mail it to the employee.
The following are guidelines to follow during your
final interview with the employee. First and foremost, cool
down. Never discharge an employee without having gathered
your wits. You want to have your best professional
demeanor. Be sure you have made arrangements for another
supervisor or witness to be with you during the termination
meeting.
• Tell the team member that he or she is being terminated
within the first few minutes of the interview; do not
drag the meeting out.
• Explain the decision briefly and clearly.
• Avoid counseling at this point; it should have already
been done.
• Explain fully the reasons for termination; give the true
reasons and all reasons. What you tell the employee at
the termination meeting will be what you have to testify
to as your reasons if things go wrong.
• Allow the employee an opportunity to have his or her
say; pay close attention to what is said but do not argue
with the team member in an effort to justify the decision.
• Close quickly.
• Only discuss the details of a termination with those who
have a business need to know. Publicizing your feelings
about the terminated employee to other employees
could later come back to haunt you in a defamation
case.
□�
If the decision to terminate
is based on poor performance,
has the employee
been given the opportunity
to improve? Can you document
your coaching sessions
with this employee?
9

10
Exciting! Experienced!
By Mark Cutshall
Pete Calkins remembers the first
time he fell in love – with cars.
“I had a Mattel Hot Wheels set
when I was eight or nine years old. It
was Smokey and the Bandit, and they
had flashy stickers.”
Several years later, a muscle car
magazine caught his teenage eye.
Then, he got behind the wheel of his
first car, a Triumph Spitfire.
Today, he’s driving another creation,
a vehicle for men and women
pursuing careers in the automotive
repair industry. It’s called the
Professional Automotive Training
Center at Shoreline Community
College. Last November, Pete became
its new director of automotive education.
He takes over a nationallyrespected
program which, fueled by
the leadership of Don Schultz, an
impressive faculty, corporate support
of General Motors, Toyota, Honda
and Chrysler, and area-wide dealer
involvement, has become the standard
by which all other college-based automotive
training programs are judged.
“What impressed me about Pete is
he understood what teaching and
learning is all about,” says John
Backes, Shoreline Community College
Interim Vice President for Academic
Affairs, who hired Pete. “He’s been
where our students want to go. He
knows what it takes to serve the dealers
and the manufacturers. It’s hard to
find all of these abilities in one person.
With his breadth of teaching
experience, administrative skills and
practical industry experience, Pete is
the right man for the job.”
“Pete’s career path, natural abilities
and achievements speak for themselves,”
says PSADA
Executive Director Jim Hammond.
“He knows automotive education from
the inside out. As an administrator and
an experienced technician, his leadership,
insights and ideas will take the
PATC to the next level. Pete knows
that guiding young adults into successful
automotive careers has immediate
payback for dealers financially.”
What was the career opportunity
that brought him to Shoreline
Community College? After gaining a
toe-hold in the industry at an
Oldsmobile dealership in Denver, Pete
discovered General Motors’ ASEP
tech training program and decided “to
make a living working on cars.” He
honed his skills as a technician and
gained experience in auto warranty
service. Then, with a little encourage-
ment from his wife, he landed a teaching
job in electrical and engine performance
at the Denver Automobile
and Diesel College.
While taking full-time classes at a
local commuter college, Peter continued
to teach – and then learned about
a full-time teaching position at
Arapahoe Community College in the
Denver suburb of Littleton. Not only
did he get the job, Pete accepted the
school’s offer to be the department
chairman.
“As a faculty member, I was
exposed to different teaching methods
through two manufacturer programs:
GM’s ASEP and DaimlerChrysler’s
CAP. As an administrator, I developed
class schedules, supervised faculty
and was at the center of assessment
and strategic planning,” he says.
One of Pete’s success stories at
Arapahoe came from the automotive
students’ participation in SkillsUSA,
previously known as VICA
(Vocational and Industrial Clubs of
America). The program gave students
both technical know-how as well as
the “soft skill” proficiency in resume
writing, interviewing, on-the-job
punctuality, appearance, team building
and problem solving. At Arapahoe,

Pete helped students carry on the college’s
tradition of winning SkillsUSA
statewide skill-assessment competitions
and representing Colorado at the
national level. “I would like to develop
and encourage the same kind of student
achievement at Shoreline.”
There was also a bit of serendipity
at work. Three years ago, Pete met Don
Schultz at a GM western region event
in Burbank, California and at a
Chrysler CAP conference in Auburn
Hills, Michigan. The two swapped stories
about their respective workplace
schools.
Pete recalls, “When Don told me
what he was involved in at Shoreline,
the PATC sounded too good to be true,
particularly the relationship of the center
to the college, the relationship of the
college to the dealers, and the involvement
and support of the PATC’s participating
manufacturers.”
Pete and Don’s conversations set
the stage for an unusual invitation.
“When Don told me he was retiring, he
suggested I apply for the job. At the
time I wasn’t quite ready,” says Pete
who, last fall, topped a field of quality
candidates.
“My near-term goals are to help
with the future expansion of the PATC
facility. When you’re elbow to elbow
like we are, you look forward to the day
of the additional space. Long term, I’d
like to bring in new manufacturers to
the PATC. In GM, Toyota, Honda and
Chrysler, we’ve got four quality factory
partners, and of course we would like
other auto makers to help more dealers
grow their own technicians. “Up ahead,
I’d like to partner directly with dealerships,
including those who aren’t represented
by our four current corporate
brands.”
Clearly, promising opportunities
abound for dealers, manufacturers and
students, alike. Now driving the educational
work of the PATC, Pete Calkins
has a firm grip on the wheel for the
curves and straight-aways ahead. �
Growth and Expansion
at the
Professional Automotive Training Center
The Professional Automotive Training Center (PATC) at Shoreline
Community College is the first manufacturer-specific training center of its
kind in the United States. The first dealer-specific classes were offered at
Shoreline in Fall of 1978. The design and plans that grew to be the PATC
were based on the exact outline presented by NADA President Jack
Pohanka in 1977 at a meeting held at Hilton Head, South Carolina. The
PSADA/Shoreline plans adhered strictly to Pohanka’s ASE standards and
manufacturer-specific training. Within a couple of years the Shoreline
training program not only attracted the attention of General Motor, Toyota,
American Honda, and DaimlerChrysler, it also caught the attention of colleges
across the nation and governments around the world. Through the
years more than 60 community colleges (frequently accompanied by their
local dealers’ association executives), numerous municipalities and multiple
foreign governments including Australia, New Zealand, Netherlands
and two different delegations from China have visited the PATC.
Needless to say, the success of the Center has been exceptional, and it
is recognized as one of the cutting edge manufacturer-specific automotive
colleges in America. Of course, along with the success comes growth. Not
only does the PATC house some of the top manufacturer-specific programs
in the country, it also provides training for 7,000 to 10,000 dealership
employees each year. The need to expand the facility became very evident
many years ago. Two years ago an active capital campaign was begun by
PSADA to generate the funds necessary to expand the PATC. To date over
$4 million has been collected from manufacturers, dealers, interested parties,
PSADA and the State of Washington. Because fund raising has gone
so well for this project, it is anticipated that the design and permitting
process for construction should begin in November of 2007.
Recently, the PATC faculty began meeting with the architects to
start the design of the expansion of the PATC. The College has hired
Group Mackenzie to design the expansion. Group Mackenzie has extensive
experience with the auto industry; their firm designed the new
Training Center for American Honda in Portland, Oregon, and also the
new Honda Dealership in Wilsonville, Oregon. The PATC expansion project
will be about 24,000 square feet and will include six training rooms for
the automobile manufacturers. These rooms will be used by Toyota,
DaimlerChrysler, Hyundai, Kia, Volvo and other auto manufacturers. This
means the new car dealers in this region will be able to get their technician
training at Shoreline instead of sending them out-of-state. There will also
be additional training bays in the addition for the factory-specific technician
training programs housed at Shoreline. These programs include
Toyota T-TEN, General Motors ASEP, Honda PACT, DaimlerChrysler CAP
and Volvo V-CATT. There will also be some additional classroom and
office space on the second floor. �
11

You see your product.
We see your largest
earning potential.
At Clothier & Head, our services are designed to meet your needs, no matter where you are on the path to
success. With the foresight gained from being up-to-date on trends, regulations, and issues facing the
dealership industry, our team of advisors truly gain an accurate picture of each client’s financial and overall
situation. At Clothier & Head we see the whole client, because we take a whole interest.
Our Dealership Services Team provides a full array of services, including:
Department Operations Consulting Tax Planning & Compliance
Dealership Valuation Merger & Acquisition Support
Sales & Use Tax Compliance Safeguarding Evaluation
Internal Control Evaluation Succession & Estate Planning
Financial Statement Audits, Fraud Examinations
Reviews, and Compilations Cost Segregation
For more information on Clothier & Head’s value-building services call Rick Rekdal, CPA or
Mike Hopkins, CPA at 206.622.1326 or visit our website at www.clothierandhead.com.
10
70
5
15
Certified Public Accountants
and Business Advisors

Developing
and
Retaining
Loyal Customers
A satisfied customer will shop at
any dealership that sells the new- or
used-vehicle he or she wants, assuming
approximate price parity and reasonably
pleasant service. A loyal customer will
buy only from you.
Customer retention is arguably the
single most important driver of your
dealership’s value, and the key to growing
your business. Retained customers
return to your dealership each time they
buy or lease vehicles; they won’t deal
with anyone else. Retained customers
talk to their families, their friends, and
their colleagues about how well you
treat them, and these people become
your customers, too. All those customers
together constitute a strong base of customers
whose loyalty is worth millions—literally.
Long before manufacturers required
CSI surveys and “customer satisfaction”
became a mantra, dealers were well
aware of its importance. They measured
customer satisfaction by the number of
times their customers returned to buy
vehicles, and/or brought their vehicles in
for service, and/or referred prospects.
Dealers knew their customers and stayed
in touch with them because dealers
understood the benefits of retaining their
customer base.
Today, dealerships keep in touch
with their customers
using a
sophisticated
business model
supported by
equally sophisticated
technology.
Customer
Relationship
Management
(CRM) is a way
of documenting, tracking, analyzing, and
building upon each customer’s every
contact with the dealership, regardless of
the point or method of contact. A contact
may happen in the form of a showroom
visit, an incoming or outgoing
telephone call, or any means of written
communication (mail, fax, or the
Internet, including e-mail). Over time,
and with the input of each dealership
employee who interacts with each customer,
the dealership builds detailed,
individualized customer portraits, which
then provide the information needed to
maximize sales opportunities and
strengthen the ties between customers
and dealership.
Your dealership’s relationship with
customers is what differentiates your
store from all the other stores in your
marketplace. You need to be extremely
sophisticated about customers because
you need them more than they need you.
You need to earn their business. They
need reasons more compelling than
price, convenience, or product to give
you their business. They’ll choose you if
you provide the individualized customer
service that the other stores don’t.
They’ll be loyal to you if you take the
steps to earn their loyalty. For customers,
good service for loyalty is quid
pro quo. For you, what you give comes
back to you times ten:
It costs ten times more to bring in a
new customer than it does to retain an
old one.
This article is adapted from A Dealer
Guide to Taking Charge of New-Vehicle
Sales (SL35). For this and other helpful
resources, visit NADA Management
Education online at
www.nada.org/mecatalog or call us at
800-252-NADA, ext. 2.
13

Adam Buchanan
14

Steve Klein:
The gift of giving
By Mark Cutshall
Do you remember the time when opportunity knocked?
Steve Klein does. Almost 40 years ago, he was 17 years old and standing on
the doorstep of a lifelong automotive career.
“It was 1968 and the local Honda motorcycle dealership in Everett had gone
bankrupt. So my older brother, Bill, and I decided to buy it. My dad, who owned
the local Ford dealership, gave us his used car building next door.” Steve and
Bill kick-started the business. Sales took off so much they soon built a new
12,000-sq ft. building.
Knock, knock.
In the months and years that followed, opportunity arrived again, when Steve
and his brother took on the franchise for Honda power equipment.
“The motorcycle business was so seasonal, we needed a way to do year
round business and to keep our employees year-round,” recalls Steve.
Knock, knock. Steve, an accomplished downhill skier, saw the writing in the
snow. The brothers opened Klein Honda Ski Haus in 1971, with a full line of
alpine ski equipment.
15

Adam Buchanan
By the time Steve was ready to
graduate from the University of Puget
Sound, not one, but two more opportunities
glided across his path. The first
happened in the Spring of 1973. “Bill
was going to run the store, and I was
looking forward to graduate school. But
then he decided he didn’t want to stay
in the business, and my dad gave me a
16
choice: sell the company and take the
profits, or you run it.
“All I want,” I told him, “is the
chance to run the company for one year.
For Steve Klein, opportunity didn’t
just knock, it swung open the door in a
way he never imagined.
“In 1974, Cliff, our motorcycle representative,
was lured away by Honda’s
car division. He came into the
store one day and said, ‘Steve,
you should look at a Honda car
franchise. It would be advantageous
to your business. Of
course you’d need to pick up
some more property.’”
“So, I purchased the
Standard Oil service station
next to our current shop. Our
franchise fee was $13,000. For
that cost, Honda provided us
special parts, special tools and
an outdoor sign.”
And with that, 23-year-old
Steve Klein became the 132nd Honda auto dealer in the U.S.
“I thought I knew everything.
I thought I could walk
on water. Yet, I soon realized I
knew nothing. I had zippo
experience. So I worked my
fanny off. I read a lot. Most of
all, I drew from three things
my dad taught me growing up:
be honest, work hard, and don’t
be afraid to ask questions of
people who’ve been down the
road before you. I took these
things to heart. I hired good
people and paid them well. I
learned that if you encourage
and motivate them, they’ll raise
the dealership to the top.”
Which is exactly what
happened. For Steve, professional
and personal fulfillment was
never an automatic transition. He had to
learn to shift.
A huge turning point for the dealership,
he admits, came when he joined a
“20 Group.” Three times a year, Steve
joined 19 of his fellow Honda dealerprincipals
for a NADA-sponsored

oundtable gathering. “Each of us was
required to bring a successful idea that
had worked in our respective business.
Then we had to tell the group how we
made it work. I came back home with
some fantastic best practices that we’d
implement in our own dealership. And I
know others benefited from things that
had worked in Everett.”
In his 30 years with Honda, Steve
has enjoyed three upgrades to build
larger, expanded facilities. And as business
has grown, Steve has discovered a
principle that has touched his own life
— the deep, personal satisfaction of
giving back to others out of your own
bounty.
Steve’s generosity has touched the
AYES automotive program at
Marysville-Pilchuck High School where
he has donated four above-ground
hoists. Steve has supported the
Professional Automotive Training
Center at Shoreline Community College
since day one and has donated to the
PATC’s current capital expansion. He
has helped build a new Snohomish
County YMCA in Mukilteo and supported
Cocoon House, a shelter for
homeless teens in Everett.
In the aftermath of September 11,
Klein Honda set aside money for every
vehicle sale, a pledge that resulted in a
gift of $17,000 to the National Red
Cross and a donation of $17,000 to the
Snohomish County Red Cross.
But there’s one particular cause
that’s close to Steve’s heart. “In 1990, I
went through a divorce and became a
single parent. My daughter, Deonna,
was in middle school, and son Rory was
in elementary school. I didn’t want
them to be home alone, so I made sure I
was home every afternoon when they
got out of school at 3:00 p.m.
“Single parenting was a real awakening.
I found out how difficult it is.”
That appreciation deepened when Steve
discovered there were single mothers
enrolled at Everett Community College.
“I visited the school and asked the leadership,
‘How many single moms with
children are enrolled because they want
a better life for themselves and their
children?’ The man said, ‘We have a
ton.’”
“I said, ‘In that case, I want to
help.” He funded four scholarships each
academic year. Seven years later, Steve
has made a college education possible
for 28 young women, some of whom
have graduated in medical technology
and nursing. He’s met a number of the
women, their parents, grandparents and
friends.
“All they needed was just a little
boost to get ahead in life.”
During those five challenging years
when it was just the three of us at
home, Steve surely gave a boost of love,
confidence, and hope to his son and
daughter.
Today, Deonna and Rory are working
full time in the dealership. Deonna,
now 25, directs customer relations and
heads the Honda Excel program that
strives to improve all phases of the
dealership. Rory, 23, is IT manager and
head of marketing.
“At first, bringing them on was
exhausting,” says Steve. “They were so
full of questions: ‘Why do you do this?
How come this? How come that?’ I’ve
come to believe that the amount of time
you invest at the beginning is directly
proportionate to what you get back in
the future. I see this in both of my children.
They know the new and younger
audiences we’re trying to reach. They
bring new ideas and new knowledge of
the latest technology our customers are
using today.”
Every morning, Steve walks
through the dealership and greets each
of his 80 employees. It’s just one of the
many ways he chooses to extend himself
to others. After all, he remembers
when he had a staff of ten and how
every little encouraging word meant a
lot. It still does.
Steve Klein knows that an act of
generosity, an expression of service
above self, can change the life of a high
school automotive student, a single
mom – perhaps even a fellow dealer.
“If I could say one thing to my
automotive peers, it’s this: I guarantee
you, by donating your time and money
to the wonderful causes you believe in,
you will increase your visibility in the
community. People will see you as more
than an honorable dealer; they’ll see
you as a deeply valued contributor in
the community where you do business.
People will see what you’re all about.
They’ll see the things you care about
and they’ll think, ‘With all that he or
she is doing, maybe I should give back
a little, too.’”
Talk about an opportunity to extend
your generosity to countless customers,
colleagues and friends – for Steve
Klein, it’s the gift that keeps on giving.
�
17

18
One excellent way to learn about
potential energy efficiency improvements
is from industry peers. Such
success stories can reveal details of
the work, time, and investment
involved and the improvements
achieved.
Evidence of the potential for dealership
energy efficiency improvements
is a Virginia Acura, Lexus and
Chevrolet dealership, visited in conjunction
with the development of an
NADA guide referenced below. The
sprawling automobile campus has
three dealerships and a number of
service buildings adding up to a quarter
million square feet of space, not
including an off-site collision repair
center.
The successes achieved at this
facility were made possible due to the
efforts of the dealership group’s facility
manager, with the support of the
dealer-owners. Many energy efficiency
improvement opportunities have
been taken advantage of, within the
constraints of the franchisors’ design
specifications. Various dealership personnel
are involved in the improvements,
as are several outside product
and service providers, including lighting
professionals. Some of the
improvements include:
Creating an
• Building Shell—A
master switch that
shuts down the entire
facility at closing,
except for select security
lighting.
• Showrooms—Metal
halide lamps in areas
with high ceilings.
• Parts/Service
Areas—Suspended
and looped compressedair-distribution
systems.
• Vehicle Washing/Detailing
Areas—Greater than 50 percent
water reclamation.
• Dealership Lot/Building
Exteriors—Exterior lighting
incorporating photocells to reduce
day burning.
• Body Shop—T5HO lighting for
the bodywork examination area.
To achieve similar results consider
contacting appropriate professionals
to review or energy audit your facilities
for potential energy savings.
Many opportunities exist for costeffective
energy efficiency upgrades at
dealership facilities. In addition, even
more fruitful opportunities exist for
dealerships involved in new construction
or major facility renovations.
These opportunities will only become
more numerous and attractive in the
future as energy costs increase, and
new technologies and strategies
become available.
This article was adapted from A
Dealer Guide to Energy Star® Putting
Energy into Profits (BM31). This
guide can be ordered online at
www.nada.org/mecatalog or by calling
NADA at 800-252-NADA, ext. 2. For
further information and assistance for
your dealership, contact NADA or the
ENERGY STAR ® Small Business
Network at 1-888-STAR-YES or
http://www.energystar.gov/smallbiz.

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The Entitlement
By Eric Chester
Perhaps you’ve seen the story that
made its way into over 300 daily newspapers,
the major television networks,
and thousands of websites. It obviously
hit a nerve with both managers and kidployees,
as it set off a huge chain of
blogs and scores of letters to the editor.
The headline read, “The Young
Labeled ‘Entitlement Generation.’” The
story featured Evan, a 24-year-old radio
sales rep, who revealed that the middleaged
manager who interviewed him for
his current job said during the interview
that young employees arrive to the job
displaying an attitude of ‘entitlement.’
Evan’s reply? “Do we think we’re
deserving if we’re going to go out there
and bust our ass for you? Yes.”
I, too, was interviewed and quoted
in this particular article, but I never
imagined that I’d be “debating” Evan a
few days later live on a Fox News segment
about younger workers and their
entitlement mentality. I found it fascinating
that the word ‘entitlement’ riled up
so many emotions in so many people.
Webster’s defines entitled as “qualified
for by right according to law.” So,
when it comes to a Gen Why entering
the workforce, is ‘entitled’ a fitting term
to describe their attitude?
I guess it really depends on who’s
doing the entering and who’s doing the
describing. But the ‘entitled’ label raises
two much larger questions that managers
and execs everywhere are wrestling
with.
First, what would drive a young kidployee
to act as if he/she is entitled to a
job? (i.e. expecting rapid advancement,
frequent raises, time off, special treatment,
etc.)
Answer — You would, too, if you
had always been on the demand side of
the employment equation. As difficult as
it was for you and me to find our first
job and our first career, the boom in the
service sector over the past 15 years has
meant that Gen Whys have always been
able to find a job, quit it, and have
another one the next day. Further, we are
talking about children of workaholic
“Boomer” parents who’ve worked over-
time to provide an endless stream of
brand name clothing, toys, and electronics,
so they think they can apply their
techno-savvy skills and “Apprentice”
roadmap to get to the top and reap the
payoff in much less time. (Just re-read
Evan’s statement.) Besides, it’s tragically
un-hip to come across as if you are a
rookie seeking wisdom. Much cooler to
play the part of a young aggressive
“Donald” who’s got it all figured out.
Secondly, how is a manager supposed
to relate to or connect with a
young kidployee that demonstrates an
entitlement mentality?
If you anticipate an entitlement mentality and understand
the social conditions that created it, you won’t be thrown
into a blind rage when they display that behavior.
Answer — Expect it. If you
anticipate an entitlement mentality and
understand the social conditions that
created it, you won’t be thrown into a
blind rage when they display that
behavior. Conversely, you’ll feel like you
hit the lottery when you encounter a
kidployee who is genuinely grateful for
continued on page 36
21

It’s been quite the ride lately for
dealers in the market to change vendors
or upgrade their current systems. If you
haven’t been following the market, you
need to know that things have changed
drastically and the old rules just don’t
apply any longer. Vendors are under
tremendous pressure to provide their
investors and stockholders a larger
return on their investment. As a consequence,
we’ve seen the largest market
reorganization in thirty years! Unless
dealers move to protect themselves,
higher technology costs are very likely.
Even if he can wade through confusion
and figure out what he needs to
buy, extended contracts, more restrictive
terms and mandatory upgrades make it
harder for a dealer to keep his options
open and strike a deal that makes the
most sense for his store. It’s harder than
ever for a dealer to find the right technology
at the right price and have it
delivered under an acceptable, fair contract.
Confusion is rampant and even the
industry news reports seem contradictory.
Depend on what your vendor rep tells
you and you’ll probably find out that not
even he knows what really happening!
Or maybe he’s not telling you all the
truth?
Retaining a dealer’s business long
term in the face of increased competition,
new players and industry reorganization
has become a staggering task for
vendors. As a dealer, you simply can’t
depend on what’s worked for you in the
past. We’ve seen staggered leases for
hardware and agreements for software
22
The Old Rules Don’t Apply!
A few simple rules that will help dealers avoid costly mistakes
when dealing with their DMS Computer Vendors
parlayed into ten and, even twenty-year
commitments for dealers who, in some
cases, don’t know how it happened.
Industry guru, Paul Gillrie (of The
Paul Gillrie Institute) recommends a few
simple rules that every dealer should
follow:
1. Do not authorize any of your
employees to sign any agreement
that may obligate your dealership in
any way. Immediately inform your
employees of this policy and follow
up with your computer vendor via
certified mail giving them the
name(s) of anyone in your organization
authorized by you to sign
agreements. In most stores, only the
dealer should be on that list.
2. Make sure you have every agreement
scrutinized by someone familiar
with the current industry standards
and practices. These agreements
sometimes appear to say one
thing when the actual intent is very
different. Get help – don’t get surprised!
3. Make sure all computer contracts
are co-terminus contracts. That is
that they all terminate on the same
date.
4. Begin contract negotiations for
upgrades 18 to 24 months before
the end of the current contract.
Vendors love to run out the clock
and thus gain the upper hand
because a dealer fears that his system
may be shut off. Month-tomonth
contracts are no panacea.
There are serious downsides, both
in cost and leverage, with these
seemingly innocuous situations.
5. Main stream computer vendors have
openly declared war on the third
party providers. Third party vendors
are tech companies that offer products
that compete directly with similar
products offered by DMS vendors.
A few examples are companies
that provide websites, networking,
CRM and archiving. By
restricting access to your data under
the guise of security, vendors now
seek to tell dealers which companies
they can employ. Would it surprise
you to know that this tactic
steers you to companies that have a
fiscal relationship with the DMS
vendor. Remember, if a third party
supplier pays a fee to your DMS,
that charge will be one you will pay
one way or another. Also, remember,
it is not who owns the data, it is
who controls the data.
The Gillrie Institute has agreed to discuss
these issues with PSADA Dealers at
no charge and provide them with further
guidance and information on implementing
the correct defensive practices. They
can be reached at 800-576-6959 and
mention this newsletter.

The Best of NADA 2007
By Jeff Forsberg
Director Peterson Sullivan PLLC
Las Vegas. Each time NADA makes a
stop here, I resolve to limit my play at
the tables, because accountants should
know better. On the other hand, visiting
Vegas gives me an opportunity to check
on my “investment.” But the real action
was at the exhibition hall and workshops,
serving as a think-tank on best
practices. My observations on NADA
2007 follow if you were otherwise busy
increasing your position in the casinos:
Most Interesting DMS News
Reynolds & Reynolds (“R&R”) occupied
a mammoth booth aptly named “the
battleship.” R&R added even more bulk
following its recent marriage with UCS,
hinting at its next slogan: “It’s your battleship….”
R&R reps ventured it will
continue to provide ERA support for ten
years and beyond –as if it had a limited
shelf life, leading one to speculate about
its long-range development path. One
possible scenario is that the post-UCS’
“Power” offering will, in time, assimilate
R&R’s ERA customers, presumably
for a premium. Given the dynamic New
World Order of DMS providers, your
next DMS contract will be particularly
consequential to your dealership.
Paul Gillrie, the DMS consultant to
dealers, fielded more than a few
inquiries about Microsoft’s presence at
NADA. A common refrain heard from
dealers: “I’m going to wait for
Microsoft.” That might be the pragmatic
approach, but consider that a MS-branded
DMS won’t be something you will
pick up at Best Buy, which is another
way of saying it won’t be inexpensive.
And the release date will likely slide
past year 2008. True, there are “secondtier”
providers offering a DMS built on
MS technology today (Quorum, PBS,
and ACS, etc.). But these “second tier”
providers all lack significant market
penetration; fewer customers can mean
limited feature sets, uneven factory support
and a higher risk of an outright
sale. Finally, I can’t recommend being a
pilot dealer for new DMS software —
just ask those intrepid dealers running
the RGS system at the time R&R
unplugged it. Don’t get me wrong: I
think a MS-branded DMS is an exciting
development and will give strong competition
to “The Big Two” (i.e. ADP and
R&R/UCS).
continued on page 26
25

Customer Relationship Management.
Jim pressed dealers to either purchase a
CRM product or make better utilization
of what’s already in-house. Your database
should also contain customers that
predate the most recent two years. And
pay attention to targeting the demographics
of your best customers: baby
boomers have impressive discretionary
income. Finally, get statistical with
measuring your ups and production on
the showroom floor.
Inventory Control. Turning inventory is
more important than ever with current
flooring rates. Remember, used vehicles
depreciate 1.5% - 2% each month,
unlike new vehicles that depreciate once
a year. Making the right vehicle decisions
of mix and valuation will prevent
your used vehicles from aging past 60
days.
Personnel. Pay plans should function as
job descriptions for your sales staff.
Because pay drives specific behavior,
ensure that your plans encourage what
you want from your staff. Reinvent the
culture of your sales staff so that “full
price is a fair price.” Minimize sales
26
Best Speaker
Jim Ziegler was firing on all nonhybrid
cylinders, sporting a hat that
read “Da Man” in case you needed
an introduction. Jim presented five
opportunity areas:
staff turnover and the related costs of it:
The #1 reason sales staff leave is spouse
pressure over hours, so consider giving
your sales personnel at least one weekend
off per month.
Marketing. Advertising dollars should
return $10 for every $1 spent. If you
can’t measure your marketing investment,
don’t buy it. Update your website
continued on page 30

Coffee Break
That's A Fact Jack!
� Potatoes have more chromosomes than humans do - 48 versus 46.
� The potato chip was created out of spite. In 1853, when a customer at Moon's Lake House in Saratoga Springs, NY, complained that
head chef George Crum's potatoes were soggy and not salty enough, Crum stomped back to the kitchen, thinly sliced some potatoes,
fried them until they were golden, poured salt all over them, and dumped them in front of the picky customer.They became known
as "Saratoga Chips" until Herman Lay, an enterprising young salesman, popularized the product throughout the country.
� Mr. Potato Head was the first toy advertised on television.
� Unlike other fruits, cranberries do not show their ripeness with color. Instead, they are sorted by bouncing: good cranberries bounce
and bad ones don't.
� The steam rising from a cup of coffee contains the same amount of antioxidants as three oranges.
� Too much coffee can kill you. A lethal dose of caffeine for the average adult is somewhere around 10 grams, or the equivalent of
drinking between 50 and 200 cups of coffee in rapid succession.
� Pretzels originated in Northern Italy around A.D. 610. An Italian monk gave them out to children who learned their prayers. He called
the strips of baked dough, folded to resemble arms crossing the breast, prestiolae - Latin for "little rewards."
� The world's oldest surviving recipe is a formula for making beer. It was discovered outside Baghdad in 1850 on a 3,800-year-old
Sumerian clay tablet.Two other tablets contain what are believed to be drinking songs.
� There are roughly 144,000 mosquitoes for every human on earth.
� Malaria mosquitoes are attracted to ripe Limburger cheese and smelly feet.The odor-protein given off by the cheese was found to be
structurally similar to human feet.
� Mosquito repellent doesn't repel mosquitoes; it blocks their sensors so they don't know you are there.
� A fetus acquires fingerprints by the end of the first trimester.
� Bookworms are actually beetles.They proliferate in libraries, where dust, dirt, heat, darkness, and poor ventilation are prevalent.The
mature female lays her eggs on the edges of books or in the crevices of bookshelves, and when hatched the larvae burrow into the
books.
� Dr. Seuss wrote Green Eggs and Ham after his editor challenged him to produce a book using fewer than 50 different words.
These interesting factoids come from That's A Fact Jack!, a new collection of utterly useless information by Harry Bright and Jakob
Answer, MJF Books. You can find a personal copy of this great book at your favorite book store.
29

The Best of NADA from page 26
and engineer compelling reasons for
your customers to bookmark it. Jim recommended
“retro-advertising” that seeks
to target your past customers –it should
capture 20% of your ad budget.
Training & Sales Processes. Constant
training, testing, and re-training of sales
staff is imperative and can be funded by
your current ad budget. Have your staff
role-play on handling customer objections
by making it fun. And regularly
quiz your sales staff on product knowledge,
which Jim lamented as a continual
problem. Finally, have a written showroom
policy signed by your sales personnel,
containing provisions for ethical
standards and accountability.
Alternative Desking Techniques
Grant Cardone made a convincing argument
for accelerating the sales process.
Negotiating speed also impacts intangibles
like customer satisfaction. See
below for what happens to your gross
30
when you’re “playing pass” with the
customer:
Grant implored dealers to give customers
more choices at the beginning of
the sales process. Consider modifying
the traditional “four square” with one
that features multiple down payments
and terms, including purchase and lease
options. The gross profit is the same
with each, but choices help refocus the
customer’s attention
off the four
square’s “single
option” limitation.
And the choices
may eliminate the
back-and-forth of
learning what the
customer will
accept for payment
and terms.
The customer
might even have
some patience left
for the F&I process.
Grant also believes it’s a mistake to
“soften up” the customer on the trade-in
by sharing what’s wrong with it.
Instead, be enthusiastic about the customer’s
vehicle. And consider using a
third party source like NADA or Kelley
to support the trade-in value, on the
principle that customers believe what
they see, not what they hear. �
Negotiation Time & Gross
Number of Passes Average Gross
2 $1,140.00
2 $958.00
2 $814.00
2 $711.00
2 $602.00
2 $547.00
2 $508.00
2 $389.00

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31

32
By Mark Cutshall
Imagine you had a support team
of professionals that provided your
dealership invaluable tools like free
legal service and a landmark regional
Wage & Benefit Analysis Survey?
Imagine having these services at your
fingertips providing you with immediate
access, personable attention and
practical help that you can’t get anywhere
else. These are just a few of the
services offered by the PSADA eight
member team: Jim, Joyce, Linda,
Don, Ron, Donna, Susan and Dawn.
Though you already knew them
on a first-name basis, do you know
how they’re strategically organized as
a team to help every PSADA dealermember
be the best they can be?
“The Association exists to serve
the needs of our dealers, period,” says
PSADA Executive Director, Jim
Hammond. “It’s about service. No
other automobile dealer association in
the country offers its members these
two landmark achievements:
• Dealer Employee Handbooks.
The Association, says Hammond,
has been recognized in national
automotive publications as one of
the national leaders in wage,
management and labor relations.
“Our dealership employee handbook
has a high standard of
excellence and is utilized by a
large percentage of dealers
throughout Washington State. It
is highly regarded by many insurance
companies.”
• PSADA Wage and Benefit
Analysis Survey. Hammond
stresses the Survey is the only
regional resource of its kind in
the country. “PSADA participation
rate is nearly 60 percent.”
More than essential services like
these, the PSADA team provides a
uniquely integrated team approach.
Let’s meet the PSADA “team” and
discover how they’re putting their
expertise to work for you:
Jim Hammond
Executive Director
Jim’s entrance in the local automotive
market came in 1973 when he
began writing advertising copy for
Seattle’s Buick dealers. The announcer
was none other than legendary
Seattle Sonics’ play-by-play announcer,
Bob Blackburn. In 1972, Jim
directed his first Seattle Auto Show in
the Seattle Center Coliseum. Soon
after, Larry Norton Jr., on behalf of
the King County dealers, asked Jim to
be the association’s first director.
After 12 years in a second floor office
above Westlake Chevrolet, the
PSADA moved to Shoreline
Community College. In 1976, with
inspiration from Jack Pohanka, a former
NADA president and father of
ASE, Jim spearheaded the creation of
the Professional Automotive Training
Center at Shoreline Community
College. Today, the program is recognized
as one of the top automotive
education and training centers of its
kind in the nation. And the Seattle
Auto Show that represented 29 local
dealers (yet not a single manufacturer)
back in 1972? Today the event
showcases every major domestic and
foreign manufacturer in four dedicated
venues that cover 500,000 square
feet, more than six times the
Coliseum’s space. “PSADA’s heritage
of service stems from dealers like
Larry Norton, Jr., Warren Westlund,
Pat Goodfellow, and Ron Claudon,
Sr., early leaders of the association,”
says Jim. “I’m honored to stand in
their shadow and work alongside a
team of such exceptional service oriented
people. Individually, they are
each immensely talented. As a team,
their ability to meet our dealers’
needs is exceptional. Each of them
deserves a gold star for both their
character and competence.”

Adam Buchanan
33

Joyce Nichols
Executive Assistant
Joyce arrived at PSADA in August
1995 having worked for three years in
corporate banking and 25 years at
Shoreline Community College. More
than Jim’s confidential secretary, her
major responsibilities include:
Managing all internal operational
aspects of the Auto Show, including
exhibitor contracts, data base management,
factory and booth exhibitor support,
part-time show staff supervisor and
managing the show office.
Creating and customizing the
employee handbooks for PSADA’s dealer-members,
and working with the
Association’s attorney to make sure the
handbook are current with state and federal
laws.
Administering the annual Wage and
Benefit Analysis Survey and report,
administering and processing PSADA’s
associate memberships, plus handling a
constant stream of questions, information
and requests on a bevy of autorelated
issues.
Says Jim, “It’s been said that no
employee is indispensable in an organization,
yet Joyce may be the one lone
exception on the planet. She is quite
simply the most amazing, efficient person
I have ever met.”
Linda Halverson
Office Manager
Linda maintains constant focus on
several key areas from administering
dealer classes on Hazmat training and
computer analysis, to overseeing classes
on Service Writer, Title Clerk and F&I,
to managing the office’s computer data
bases and delivering Association correspondence
to PSADA members. Linda,
who joined the PSADA team in May
2001 came from Shoreline Community
34
College’s accounting department and
many years in corporate banking. Linda
also works closely with bookkeeper
Donna Howard.
“When you run a multitude of programs
simultaneously, you need an ultimate
multi-tasker who can manage and
oversee projects and give each one the
attention they deserve,” notes Jim.
“Linda does this naturally. Not only does
she execute well, she has tremendous
foresight and intuition that helps us
maximize our time, our dollars and our
total effort.”
Don Schultz
Director of Education and
Development
Don worked at Shoreline
Community College for 37 years, starting
as a professor in engineering and
manufacturing. The past 12 years he
served as the Dean of Business,
Automotive and Manufacturing
Division. Don has been central to the
success of the Professional Automotive
Training Center at Shoreline. Today,
Don is working with PSADA to raise
money for the Center’s expansion project,
which will add 24,000 square feet to
the existing complex. To that end, he’s
been working with dealers, manufacturers
and other potential donors for cash
donations. He’s also been the go-to guy
working with SCC, the architect and the
City of Shoreline on project planning
and permitting.
“Don is the guru of automotive education
in America,” says Jim. “He
helped lay the foundation for the
Professional Automotive Training
Center. When he retired from Shoreline
Community College two years ago, we
made sure he wasn’t going to get away.
We hired him to run the expansion campaign.”
Ron Olson
Automotive Youth Education Systems
Manager
Ron coordinates the statewide
school-to-work initiative between high
schools and Puget Sound area dealers.
The two-year AYES program he oversees
involves high school students in an
industry-based, in-class training program
that is connected with a summer internship
with a dealer. The intent of the program
is to help young workers become
automotive technicians.
Says Ron, “I’m working to give
dealers an increased appreciation for this
program that gives them the opportunity
to hire quality people and, as we like to
say, “grow their own technicians.”
“I’ve known Ron since 1973, when
he was the regional representative for
Volkswagen,” notes Jim. “Based on
Ron’s vast industry experience, there
was no question of who to pick to head
our AYES program. His immense
patience with the kids, combined with
his experience, makes him a natural for
the job.”
Donna Howard, CPA
Bookkeeper
With 19 years experience as a CPA,
Donna fills a critical role of processing
all financial transactions, creating
PSADA board financial reports and
managing the Association’s year-end
audit. As Donna says, “I’m here to help
and provide perspective.”
“Donna has revolutionized our
bookkeeping system,” says Jim. “She
can identify every expense, every payment
at any time. Her accuracy, organization
and financial analysis pay huge
ongoing benefits for the association.”
continued on page 36

PSADA Team from page 34
Susan Leonhardi
Receptionist and AYES Secretary
With a business degree from the
University of Washington and a broad
variety of work experience, Susan is the
smiling face you’re most likely to see
when entering the PSADA office. Born
and raised in Seattle, Susan is the mother
of two.
“Susan brings us incredible flexibility
and efficiency, supporting all of our
programs. And she’s very funny,” says
Jim, smiling.
Dawn Mylerberg
Project Support
“Several years ago I retired after 23
years at Shoreline Community College,”
says Dawn who grew up in Pasco,
Washington and also worked in admissions
at the University of Washington
and Eastern Washington University.
“My last job was as coordinator for
Continuing Education. During that time
I interfaced with Jim. I told him the kind
36
of work I was interested in doing when I
retired. One day he walked in and asked
if I would like to come to work for
PSADA. He must have read my mind.”
Today Dawn is on call to help with special
PSADA projects and is a major support
for Joyce down at the Auto Show.
“When Dawn came through the
door,” says Jim, “I knew in the first few
minutes that she was perfect for the job.
She fits in perfectly. And she is always
so happy.”
That’s the PSADA team. Eight professionals.
Eight people committed to
providing prompt, personable service,
working together to help you make your
dealership the best it can be. �
Entitlement from page 21
the opportunity to work for you, and is
willing to accept your direction without
question.
Further, make time for face time.
The best way to diffuse an attitude of
entitlement—without uttering the words
“you’re fired!”—is by forming a relationship
where each party trusts the
other to help them reach desired goals
and objectives. In short, learn why they
have a job, why they chose to work for
you, and what their short-term and longterm
objectives are. Resist the temptation
to be like your first employers and
‘lay down the law’ or tell them your
company history and mission statement.
Instead, do the opposite and first discover
their mission statement. You’ll be
amazed at how quickly they’ll shed their
shell of entitlement and acquiesce to
doing things your way.
Never forget that regardless of what
kind of first impression they make,
underneath lies a kid who desperately
wants to succeed, possesses the talent
and skills to help your business grow,
and is searching for direction, leadership,
and a caring adult mentor. Rise to
the occasion. After all, you’re entitled. �

Want Dedication?
Give Inspiration.
Employee Recognition
Phone (800) 253-0882
Fax (360) 573-6018
www.terryberry.com
e-mail: info@terryberry.com
37

Puget Sound Automobile Dealers Association
16101 Greenwood Avenue. N. Bldg. 2100
Seattle, WA 98133
PRSRT STD
U.S. Postage
PAID
Seattle, WA
Permit No. 1578