Could you be sabotaging your own success? On today’s episode of CBT Now, we’re exploring the “Upper Limit Problem,” a common problem many of us experience in business with allowing ourselves to enjoy our wins without boundaries. Joining us is Gay Hendricks, the founder of the Hendricks Institute, to discuss his new book, “The Big Leap,” which explores this problem and how to overcome it.

Hendricks asserts that the Upper Limit Problem is the human tendency to bump up against limits in an attempt to grow. In other words, the subconscious self-sabotage that happens when we taste something great. Be it a promotion, financial windfall, a great relationship, or any other means of success. Furthermore, Hendricks notes his work at the institution is geared toward helping people spot when they’re “Upper-Limiting” and how to navigate through it.

Key Takeaways: 

1. Take a moment to evaluate if you attribute to the Upper Limit issue by learning how to spot it: Eliminate worrisome, unproductive thoughts that you can’t change. 

2. You get power back when you shift your focus to valuable thoughts instead.

3. Release your need to be right. It will direct conversations away from solutions and add to your upper-limit problem. 

4. Fear is characterized as a trigger from childhood trauma that will hold you back and ensure artificial shyness.  

5. Life is about constantly being open and receptive to receiving positive energy. It keeps your attention on everything inside, where everything starts; the shine you already have.

“The secret to happiness is knowing there are some things you can control and some things you cannot control.” - Epictetus.

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From mom-and-pop dealerships to larger auto groups, the changing retail automotive landscape has impacted businesses big and small. But how are dealers on the frontlines adapting to the transforming landscape? On this episode of CBT Now, host Shyann Malone is joined by Katie Bowman Coleman, president and owner of the Bowman Auto Group, to discuss her experiences in the industry and how her dealership has fared throughout the year.

Coleman began her retail automotive career after first working in fashion retail for several years after college. It only took a few months of work at her father’s dealership for her to realize that she had found her calling. Once she obtained her master’s degree in finance and went to dealer school, Coleman began rising in the industry ranks, ultimately taking leadership of the Bowman Auto Group.

For women interested in joining the retail automotive industry, Coleman urges them to start by finding flexible roles. Since many women are also caretakers, it can be challenging to manage both a family and a business. Companies that are willing to accommodate their employees’ personal lives can help relieve the stress of balancing multiple roles. Another crucial element to achieving long-term success in the dealership is finding a mentor to guide one throughout their career. Coleman notes that both of these elements were crucial to her own success and have become integral parts of her management style. “The better I can treat my employees, the better they’ll be able to treat our customers,” she notes.

Coleman notes that Bowman Auto Group has seen continued growth throughout 2023. The dealership has regularly placed among the top 20 Chevrolet storefronts and continues to see high sales in the Michigan market. Similar to other successful businesses in the retail automotive sector, Coleman has seen demand for vehicles increase, even as inventory lags behind pre-pandemic norms. “We could use more, but it’s a tough balance,” she explains. Bowman Auto Group has seen an average days’ supply of 10 to 15 days throughout 2023.

One of the biggest shifts to hit the retail automotive sector this year is the sudden rise of the electric vehicle segment. While EV purchases comprise a small minority of all car sales, the total has risen rapidly, driven by an avalanche of new models from legacy automakers and startups. Coleman notes that her dealership is fully in support of the technology. “I don’t feel it took a ton to really get ready and get our arms behind it,” she remarks. “It was just more saying yes and making sure that everyone was trained.” While most franchises only require their dealers to have one EV expert on hand, Coleman’s entire sales staff has been trained to sell battery-powered cars. Many of them have also purchased an electric vehicle for themselves since she offered to install home chargers for free.

Retail automotive is still a highly profitable sector, and as dealers look forward to a recovering economy, they can also expect to see new opportunities for growth. Bowman Auto Group expects to expand in the coming months, although Coleman notes that the business is likely to remain focused on the Michigan market. Nevertheless, she remarks: “I think I’m getting close to ready to take on a new challenge.”

“The secret to happiness is knowing there are some things you can control and some things you cannot control.” - Epictetus.

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For years, dealers have been challenged with receiving fair compensation for retail warranty reimbursement. However, nowadays, franchised dealers in all states are protected. On today’s CBT Now, Lenord Bellavia, Founding Partner of Bellavia Blatt,  joins us to break down what this means for the industry. 

According to Bellavia, “Dealers should pay attention to the reimbursement rates as it correlates to revenue streams.” But, dealers are front-end centric, meaning they always worry about sales. Therefore, based on how the industry continues to evolve, the fixed operations sector has driven the entire business overhead expeensives. Bellavia says, “This is what dealers call shop absorption, where the back end of the business drives the overhead.” Furthermore, Bellavia believes “Dealers get grossly underpaid for their parts and labor under warranty.” 

Reasonable compensation

When sitting down with dealers to outline what they’re leaving on the table, most dealers believe they’re missing out on a few couple of dollars or percentages in labor rates. However, Bellavia asserts, “When translated into real dollars, it’s typically between $200,000 and $300,000 annually in revenue opportunities. However, manufacturers hold dealers to rigorous standards regarding supporting updates and working capital. According to Bellavia, manufacturers set up departments at the OEM level to analyze warranty claims to receive kickbacks, but “Those submissions must be strictly focused on.” He continues, “If dealers submit 100 consecutive repair orders and one isn’t appropriate for the batch, the OEM will reject it and postpone it by a month or two. Which leads to possible lost revenue of several thousand dollars.” 

To properly create a submission, Bellavia’s highly skilled team takes 30 to 40 hours in the first step. Then, they have a quality control process that takes an additional ten hours to review possible mistakes that the manufacturers could see. Furthermore, according to Bellavia, “There are state statute exclusions that dealers are unaware of, which include batteries, maintenance, tires, and more that reduce the overall markup.” 

All 50 states have legislation defining 150 qualifying repair orders, parts, and labor. Most dealers are aware of the legislation and are taking advantage of it. Still, those unaware of it need to learn they can resubmit a submission repeatedly for labor because retail labor increases annually.

“The secret to happiness is knowing there are some things you can control and some things you cannot control.” - Epictetus.

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It can be exciting when a sales representative gets a call from a lead or potential customer, but what happens during that call, can make or break the sale. Today on CBT Now, we’re joined by Matt Easton, sales coach, consultant, and the founder of Easton University, to walk us through how to answer an inbound lead from a customer without jeopardizing the sale.

“The secret to happiness is knowing there are some things you can control and some things you cannot control.” - Epictetus.

The expression, it’s not how you start, but how you finish is the wrong mindset to have according to Easton. Yet, most sales coaches will embed that saying in training as the essential sales foundation.

“Due to the lack of skills, those coaches will spend lengthy periods of time on how to close,” says Easton. “Start right, slow down, and the finish will come easier.”

It’s important to note that when salespeople get frustrated, it’s because they start with the end in mind. But according to Easton, “Nobody is born to be a salesperson; it has to be taught.”

How to start

Knock off with the phrase: How can I help you?

The phrase diminishes your credibility and authority. Therefore, instead, Easton encourages salespeople to answer the phone with, What can I get you information on? He further explains, “If you’re answering your business phone, you want to start with something like, ‘It’s a great day.’ This is a verbal way to smile and grab the information they’re calling for.”

Utilizing your skills in every part of the conversation and slowing down in the beginning, will speed up the results in the end. For example, after the greeting or when you call a potential customer back, ask what research they have done.

Easton explains, “Gone are the days of the bad words, like ‘follow up’ and ‘checking back in.’ We discussed at the beginning of the segment that we are raising our credibility. So, don’t lie. Don’t say you’re the CEO, co-founder, manager, or any other higher position. Instead, say, “I wanted to contact you personally.” This will help your credibility and let clients know they are being cared for by someone in a position of authority.

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When it comes to the world of business, we’ve seen the impact that leadership from the middle of an organization has. Yet, one of your most important professional relationships is with your boss at the top. On today’s CBT Now, your host Shyann Malone sits down with Scott Mautz, the founder of Profound Performance, to discuss the two key difficulties employees may face: disagreements and giving your boss feedback, and how to navigate what to say and when? 

Mautz explains that giving your boss feedback is one of the most heart-wrenching things for any employee. But if you remember these three essential steps, you’ll be ready to tackle any problematic conversation that may arise in any position of your career:

1. Step one is to: confirm that your boss is open to feedback. This can be discovered by simply asking them if they are or not. 
2. Next, during your feedback: Share your observations, not your presumptions. When a boss feels their position of power is in question, they tend to be dismissive, and coming to solutions to the feedback becomes pointless. Instead, Mautz asserts, “Research shows bosses struggle with employee feedback, but when you share your observations, it boils down to the facts and defuses the situation.” 
3. Finally, S.H.R.E.D it. This is a simple acronym to remember to be specific, honest, respectful, empathetic, and direct. 

Furthermore, feeling heard on both ends is essential when sitting down for a conversation. Often with discussions between employees and bosses, leaders tend to offer scripted messages instead of utilizing the most crucial technique: stepping back from a position of authority to actively listen and validate. 

According to Mautz, “As a higher-up, you want to enter the conversation as an ally instead of a critic.” This leads to the concept of how employees can disagree with their bosses. Mautz suggest, 

1. Start with respectful candor. Even if you don’t respect the person, acknowledge that you appreciate the position and don’t hesitate to recognize how you agree with the difficulties that come with the job but offer possible alternatives to approach the topic of discussion. 
2. Next, discuss the intent before the content. You can mutually agree with the company’s goal. Still, mentioning the conversation’s purpose and why you brought it to their attention would be best before offering ways to improve the content. 
3. Avoid judgment words. Muatz says, “Never say you.” Disagreements should offer your perspective, not be a personal attack on the boss.”

Mautz continues, “You don’t have to be a CEO to be a leader; set aside societal’ definition of a middle manager.” Mautz says his portrayal of a middle manager contains the following:

“Anybody who has a boss and is a boss or aspires to become one and has to lead in all directions to do their job.” He adds, “The middle manager position is nothing to be ashamed of. I think it’s one of the hardest jobs in management.”

“The secret to happiness is knowing there are some things you can control and some things you cannot control.” - Epictetus.

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Inventory is higher than it has been for dealers, but not by much, and dealers still need to fill their lots. On today’s CBT Now, we’re focusing on odometer fraud, which has plagued the retail automotive industry for decades, and ways dealers can avoid potential problems when in the market for a vehicle. We’re pleased to welcome Kirsten Von Busch, Experian’s Director of Product Marketing for Automotive, and Ron Montoya, Edmund’s Senior Consumer Advice Editor and Content Strategy.

Essentially, odometer fraud is when a person manipulates the odometer to hide a vehicle’s actual mileage and pass it off as lower mileage. According to records, Montoya states, “Over 450,000 cars are sold annually with false odometer readings.” Those false readings could cause Americans to overpay billions of dollars annually. In addition, Kirsten claims, “Today, it’s not as easy to identify a faulty odometer by simply looking at it. It’s not the days of the analog odometers that we could physically see If they were changed.” However, there are ways to identify change through the data: 

• There are title brands for odometer issues,  
• There are auction announcements,  
• And at Experian, they utilize modeling to catch discrepancies.  

Ultimately, Kirsten explains, “You need to look at the data, see how it’s changed over time, and see if anything stands out.” In addition, it’s crucial to remember that “if an odometer has been altered, the value of the vehicle will decrease, and when you have limited inventory like we do today, this could cost dealerships thousands,” says Montoya.

Resources

Kirsten at Experian says, “We recommend consumers to utilize the AutoCheck Vehicle History report, which is a great resource tool to provide background information.” Also, she asserts that Experian reports what gets reported to them. Hence, they recommend anyone purchasing a pre-owned vehicle to get it examined by a licensed mechanic. 

Advice

Both Kirsten and Montoya express how every dealer and consumer alike need to be aware of potential odometer fraud. It’s vital to keep in the front on mind how technological advances limit the ease of identifying faulty odometers. “Do your due diligence of reviewing your vehicle and the data and history,” asserts Kirsten. While Montoya adds, “If you see any red flags, trust your instincts and ask questions.”

“The secret to happiness is knowing there are some things you can control and some things you cannot control.” - Epictetus.

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According to the most recent iSeeCars study, used electric vehicle prices have fallen by nearly 30%! On today’s CBT Now, we’re pleased to welcome back Karl Brauer, the Executive Analyst for iSeeCars.com, where Brauer will shed some insight into the numbers and what’s happening with the used car market overall.

“The secret to happiness is knowing there are some things you can control and some things you cannot control.” - Epictetus.

The used car industry has faced significant turbulence over the past three years. However, the market is finally starting to see some moderation. Brauer notes that despite being well above pre-pandemic pricing levels, “The market has come off its high, and we are seeing stabilization in the general used car market.” Over the last few months, the industry has experienced slow drops of three to 4%. However, used car prices are in a “free-fall,” meaning they are continuously falling primarily due to Tesla.  

Price Factors

According to Brauer, “Tesla is the biggest portion of used prices. It’s due to the EV maker continuously cutting its new car prices. Ultimately, Tesla has caused the used car market to collapse over the past year.” He further explains, “A year ago, we faced turbulent gas prices, which made EVs more desirable.” But, since then, EVs have stabilized to the general public. Also, a year ago, the industry didn’t have inflation or today’s interest rates. Anytime consumers buy a new or used EV, they pay more for the equivalent EV than the traditional vehicle. “Plus, the economic concerns are raising people’s awareness or hesitation to buy anything, asserts Brauer.

Brauer also believes, “There are three or four factors that are more destructive to the market than a year ago. It’s also important to note that a year ago, EV prices rose faster than the general traditional cars, now they’re reducing considerably faster.”

Tesla

The Austin-based EV maker spent the last ten years with no car, plenty of demand, and no competition. Then suddenly, they are being flushed by competitors such as Lucid and Rivian. Tesla has had to reduce its Model S, 3, and X prices to sell the relatively new Model Y. But because Tesla is lowering costs, it’s impacting the overall market. For example, the more desirable luxury brands that frequently struggle in normal conditions, like the Land Rover, Infinity QX80, and the Seven series BMW, struggle to hold their value. Insinuating those vehicles don’t have the same pulling power as used cars.

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Overall satisfaction with new vehicles is declining, according to the recently released U.S. Automotive Performance, Execution and Layout (APEAL) study released by J. D. Power. On this episode of CBT Now, host Shyann Malone is joined by vice president and head of auto benchmarking and mobility development at J.D. Power, Kristin Kolodge, to discuss why buyers are less happy with their cars and whether dealers and manufacturers should be concerned.

The APEAL study, now in its 28th year of research, examines consumer experiences with current model year vehicles, meaning all the cars utilized in J.D. Power’s analysis were built in 2023. Kolodge notes that all of the 84,000 participants in this year’s research were surveyed 90 days after buying their car. Unfortunately, 2023 is the second consecutive year where scores decreased, an event that has only happened once before over the last three decades.

Trends that first appeared in last year’s study deepened in 2023. Out of the ten categories used to measure customer satisfaction, sentiments relating to vehicle exteriors soured the most. Differing opinions between new and refreshed car models also widened. “It was really interesting to see even looking at the vehicles that were considered all-new [and] completely redesigned versus those that were new, there was only a three-point satisfaction difference between those two types of categories,” reports Kolodge. “Very surprising because usually we’ll see much higher satisfaction with new vehicles.” These two scores indicate that customers are no longer impressed with the cars on the market, despite automakers launching new and innovative designs.

One area did see an improvement over the previous year. Kolodge notes that customer satisfaction scores were more positive in regard to driving range. This category includes both electric and combustion engine vehicles, which means that battery efficiency, as well as mileage, has improved. “That was our bright spot in overall satisfaction with the vehicle,” she remarks, although she notes there is one caveat: between 2022 and 2023, gas prices dropped 7%, a shift that could have contributed to this year’s higher fuel economy ratings.

This year’s APEAL study offers several important takeaways for both manufacturers and dealers. Kolodge urges OEMs to recognize that their competition has changed. The automotive space is no longer occupied by legacy car makers. Now, disruptive brands like Tesla and Rivian are also vying for customers. “The lens of who they should really be benchmarking really [started] to open up,” she notes. On the dealership level, franchises whose brands saw lower scores in the 2023 APEAL study should prioritize taking care of the customer. Retailers have an immense impact on how buyers view their purchases. By enhancing the in-store and online experience, dealers can help their company’s scores recover in time for 2024.

“The secret to happiness is knowing there are some things you can control and some things you cannot control.” - Epictetus.

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In today’s world of social media, and information and choice overload, it’s no wonder why customers often say, “I need to think about it.” There really is too much to think about today. On today’s edition of CBT Now, we’re pleased to welcome back Matt Easton, Sales coach and founder of Easton University, to show you how to help your customers make decisions and purchases, despite being overwhelmed with information and choices. 

Evaluating

In Easton’s observations, he asserts, “I see roughly 45% of all sales material, coaching, and advice, recommending salespeople to bully their customers intellectually.” He expresses that the type of intellectual bullying being pursued is the kind that doesn’t feel good- peer pressure. When a potential client or prospect says they need to think about it, really focus on your response method. Easton asks, if your response is some kind of witty, clever comeback, then you are intellectually bullying that person in that moment. There’s plenty of coaching out there that encourages this type of training. Of course, salespeople don’t put it together with malice, “I believe the outcome remains the same- peer pressuring your customer,” expresses Easton. He continues, “If you take nothing else from this segment, take this: You may need to audit the way you treat people.” 

Where it’s no question that consumers have more information today than ever before, Easton believes that when a client needs to “think about it”, he takes them at face value. He explains, “I’m going to treat people the same way I would like others to treat me. If I don’t want to be tricked or bullied, neither will others.” 

Solutions

Once a salesperson audits the way they perform their job, they can shift focus to avoid unwanted bullying. Easton suggests:

1. The first step you can take is to be Next Step Obsessed. Instead of bullying, make the next step is to simply follow along with the customer. Be of a friend or of another person, don’t stop doing your job, but sometimes you can avoid the “I need to think about it” in the end by applying the next step.
2. Slow the process down from the beginning. Start conversations and make them feel more at ease rather than jumping right off with the pitch. Ask them what you could get them information on, or let them unpack so you know where to meet them at. 
3. Ask them, What research have you done on us? Or ask them what nobody else does- What is most important to them? Then “Actually listen to them.”

By asking these customer-focused questions, you will put them in the ideal position to not have to think about it by the time you get to your presentation. If you still receive objections after posing these queries, pay attention and accept them at face value. You can ask them questions to learn about their current status, their goal, what they want to achieve, and why that is essential, and then move accordingly. By doing this, you won’t have to ask if they will buy, but if it makes sense. 

Ultimately, Easton suggests, at the end of the conversation, don’t remind them they aren’t buying but summarize your understanding of the next step. Whether handing out your email, giving them more information, or finalizing the presentation. “If you stop bullying people and start being helpful, they will respond because of two things.” 

1. You’re genuinely being helpful. 
2. No one in the industry acts like this- they’re all high-pressuring bullies costing you sales. 

“If I intellectually bully you into buying, karma will come back around. You don’t want customers you forced to buy from you.”

“The secret to happiness is knowing there are some things you can control and some things you cannot control.” - Epictetus.

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With the current headwinds facing the automotive industry, dealers and consumers alike are still facing the pain points of new and used vehicle sales. Joining us on today’s episode of CBT Now, with an update on market conditions, is Jessica Caldwell, Edmunds‘ Executive Director of Industry Insights.

As the industry finished the first half of 2023, Caldwell reports that the second quarter looked “fairly decent.” She continues, “We have seen a year-over-year increase as inventory improves, consumers are returning to the market, and there’s plenty of pent-up demand.”. But, due to these indicators, it leaves the question: When will consumers return to the market and start buying cars again?

Interest rates

Looking at June, pricing remained relatively high, with ATP reaching the second highest it’s ever been. The industry continues to see discounts return to the market, and vehicles are no longer ticketed above MSRP. Dealers are now looking at almost $30,000 as an average ATP, which is a cooling point from the price highs of 2022. Even still, used car prices in June were 43% higher than in June 2019—before the pandemic’s peak. According to Cladwell, “Although market pricing is easing, historically, it remains astronomically expensive compared to before the global shutdown.

Interest rates significantly impact consumers returning to the market to buy cars. According to analysis, the current average APR for new cars is around 7%, while the average APR for used vehicles is about 11%. “So when you put these high pricing and high interest rates together, you suddenly have large monthly payments that surprise consumers,” claims Caldwell.

On the other hand, the market share for EVs is about 7% for 2023 and is still growing gradually every year. Caldwell believes, “Once we get past the adopters, people with high-income levels can afford these expensive EVs. Then what?” Most Americans do not fall within this income range. Therefore, more reasonably priced EVs are needed because, according to the most current Edmunds survey, lack of infrastructure and expensive costs are the main reasons people won’t purchase EVs.

Second half of the year

If dealers could offer their clients better loan rates, whether through the OEM directly or through banks, that message would be highly received by repeat consumers looking to buy cars. However, leasing has become extremely important for dealers selling EVs because the federal tax benefit applies to any leased vehicle. To illustrate, in November 2022, leasing penetration stood at 8%; by June 2023, it had risen to 44% and has been steadily increasing since.

“The secret to happiness is knowing there are some things you can control and some things you cannot control.” - Epictetus.

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