AUTOMOTIVE DEALER SPECIAL EDITION

THE OFFICIAL 2016 AADA NATIONAL DEALER CONVENTION PUBLICATION 2016 SEPTEMBER 2016

YOUR AADA EXPO GUIDE SHOWCASING NEW PRODUCTS & SERVICES! MARKETING, MEDIA & TECHNOLOGY SERVICE, AFTERMARKET & CAR CARE SOLUTIONS CRM & REPUTATION MANAGEMENT PRODUCTS FINANCE, TAXATION & AUDITING SERVICES LEASING, INSURANCE, STUDY TOURS & MORE! www.automotivedealer.com.au Maria: Hello! Welcome to DriveChat, how can I help you today?

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CONTACT PROFITABLE PRODUCTS Level 1, 350 South Road Hampton East VIC 3188 AADA NATIONAL DEALER PUBLISHER: eBusiness Media MANAGING EDITOR: Luke Prendergast CONVENTION ART DIRECTOR: Vergil Dela Cruz 6-8 SEPTEMBER 2016 MELBOURNE CONVENTION & EXHIBITION CENTRE ADVERTISING MANAGER: Geoff Vine [email protected] Mobile: 0413 854 779 THANK YOU TO OUR SPONSORS PRODUCTION MANAGER: Stace Nagle [email protected] PRINCIPAL SPONSORS:

Phone (03) 9576 9944 Fax (03) 9576 7277

CHANGE OF EMAIL (03) 9576 9944 or [email protected]

EDITORIAL [email protected]

EDITORIAL & ADVERTISING OFFICE Lvl 1, 350 South Rd, Hampton East VIC 3188

No responsibility is accepted by the publisher PLATINUM SPONSORS: for the accuracy of information contained in advertisements in the Profitable Products. Publication of any advertisement does not constitute endorsement by the publisher of any product, nor warrant its suitability. Advertisements are published as submitted by advertisers.

COPYRIGHT No part of this magazine may be reproduced without the publisher’s written permission.

CONTRIBUTORS The views expressed in Profitable Products GOLD SPONSORS: by the editor, external contributors and advertisers are not necessarily those of AADA.

Share your thoughts with us. Autotraining Got a question, comment or want to submit editorial content? Write to us at editor@automotivedealer. AUTOPAY com.au. Letters must be addressed to the editor and should be short and sweet (no more than 150 words). PROFITABLE PRODUCTS SEPTEMBER 2016 3 AADANADA $4,250PER PERSON STUDY TOUR 2017 TWIN SHARE INCLUDES:

• 4 nights (twin share) accommodation at the 5-star Omni Royal hotel

• All applicable taxes and gratuities NADA • NADA Dealer registration NEW ORLEANS - JANUARY 26-29, 2017 • Arrival breakfast function with pre-arranged registration hand-outs

• Dealership tour The AADA’s annual study tour to the world’s largest auto • Dedicated AADA workshop at NADA industry convention has a special flavour in 2017, with NADA celebrating 100 years of operation. • World’s biggest auto industry trade expo There is no better city in the world in which to celebrate than • NADA 100 years anniversary function New Orleans, with its Mardi Gras atmosphere, legendary music • AADA international relations dinner, scene and eclectic mix of people and interesting cultures. including international speakers As usual, AADA has put together an exciting program for this • Farewell cocktail function business-centric tour, with a little time set aside to enjoy being • All meals, beverages, staffing and in one of the world’s great party cities. transportations necessary for all functions • Unrivalled networking and business- Delegates will also enjoy an exclusive range building opportunities of premium add-on benefits that no other organisation can match. • Opportunity to experience the world-famous, culture-rich, French Quarter, with its music, history, tourist attractions and grand buildings.

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WELCOME TO PROFITABLE PRODUCTS CONTENTS ISSUE 4 SEPTEMBER 2016 SPONSOR FEATURES Patrick Tessier Auto–IT Continues To Lead The Way...... 7 Convention Director MTAA Super Continuee To Shine...... 9 Earn Five Times As Many Reviews Snap21...... 11 Macquarie Leasing: Giving You Options...... 12 elcome to our AADA National Convention 2016 issue of Profitable Products magazine. Fuchs: Lubricating Australia...... 13 Pentana Solutions: The Innovators...... 15 WWith the automotive retail industry enduring another tough year, with local manufacturing winding down, parallel import issues and the yet to see fall Forging An Allianz...... 17 out from Brexit and other global issues, keeping an eye on your businesses profits Meet Eric...... 19 is becoming more important than ever. Carsales Goes From Strength To Strength...... 21 Themain areas where profit can be increased may seem fairly self-evident. Cars And Cash At Manheim Live Auction...... 23 Clearly increasing sales is the obvious, if not a problematical answer. Just getting

more money into the business is clearly one answer to profitability but not the only FEATURE STORIES answer. Join AADA At NADA 100...... 25 However this also happens to be extremely difficult in a market place with 68 manufacturers all vying for the somewhat limited Australian car buying public. The Cloud: Why You Should Be Using It...... 26 Your Online Reputation ...... 28 Again smart options are out there for getting people into dealership and, and all are well worth exploring. Media: The State Of Play...... 30 Corporate Travel Management Could Save You Money....33 Innovative media, social media and marketing opportunities are available, in a constantly changing media landscape and certainly should be a part of running Buying And Selling Cars At Auction...... 36 a successful business. Training Your Staff What’s There To Lose...... 39 Theother and somewhat less obvious answer to improving your bottom line, is to Maintain Your Workshop...... 41 become smarter and more cost effective at running your business, that is getting Engine Oils Technology On The Inside...... 43 the most out of the money you earn via car sales. Clean Cars Sell...... 45 This publication has sourced industry specific experts who not only know their Corporate Apparel - Looking The Part...... 46 own business operations but have focussed products and solutions that fit the unique vagaries of automotive dealerships. When you are talking to experts who understand, not only what you do but how you do it, you certainly have confidence that they can help you to do it better! That’snot to say there is a ‘silver bullet’ that will be the answer to all your business prayers, but, as they say, knowledge is power. The more you know of the products and services that are in the market the stronger you are to face challenges and keep at the front of the pack. So in line with the AADA National Dealer Convention 2016 theme of ‘Building Better Outcomes’, get involved with the new improved Expo exhibitors… engage the stand holders explore their products and services,pick their brains and above all enjoy yourself at this year’s Convention.

PROFITABLE PRODUCTS SEPTEMBER 2016 5 We deliver great results for Australian dealers.

For outstanding, personalised service and the most modern DMS and apps, it has to be Auto-IT. Book a demo at the AADA Convention and see what you’ve been missing.

“The Parts Manager loves the reports on his “I go from meeting to meeting and hear about tablet. He walks around the warehouse and dealers’ frustrations with their provider. I’ve the parts department - he’s got his iPad in experienced that and I’ve told many dealers his hand; talking to his guys directly from the over the last few years that they should pick up output he’s getting from the system.” the phone and speak to Auto-IT and seriously consider them.’” Gavin Hart - Financial Controller Penfold Motors Stephen Crawford - Managing Director Col Crawford Motors “Auto-IT’s DMS continues to be the best system available for handling complex tasks “I’d absolutely recommend Auto-IT as a in our motor dealerships. It is incredibly partner to the business - just as much from stable, resource friendly, and our people with the relationship side as the product.” different levels of ability can be successful with it. I would recommend it to other motor Simon Logan dealerships with no reservations.” General Manager Etheridge Ford Brian Hannan - Company Secretary Norris Motor Group

Australia’s fastest growing DMS auto-it.com/aada | [email protected] SPONSOR FEATURE

AUTO-IT INDUSTRY RELATIONS LUNCHEON - TUESDAY 6TH SEPTEMBER 12:15PM AUTO-IT CONTINUES TO LEAD THE WAY

or more than 35 years, Auto-IT has led It can be tailored to your Dealership structure The Kaizen Service Workshop System the way in providing Dealership system and needs, and incorporates financials, maximises workshop throughput via a fully Ftechnology, but the company is not parts, service, sales, marketing and customer interactive booking system, while intelligent resting on its laurels. contacts within a single tool. This increases service scheduling tools and powerful ‘live’ profitability and provides for greater reporting of workshop work-in-progress is Mobile technology is the way of the future, automation of complex, multi-level tasks. great for advisors, managers and other staff. and Auto-IT is already at the head of the pack, offering packages that can be used across UNITS generates live data that is quick and The system has simple navigation via a desktops, tablets and smart phones. Many easy to access, with the Windows interface Windows Explorer-style menu, and varies regular Dealership processes can be performed familiar and easy to use. It integrates with from character-based where input speed is on mobile devices, so it makes sense. factory requirements and updates to popular critical to graphical where reporting and POS reporting tools. With comprehensive ongoing is important. With its products UNITS and PMDS, Auto-IT support and service and built-in language offers two solutions that comprise a full suite cloning tools, it is ideal for medium to large The Showroom System is fully integrated with of integrated, modular components, providing Dealership groups. Service, Parts and Administration, with gross complete management and control of the analysis, gross controls, contract and form operations of the business, with access to PMDS printing. Graphical overlays allow substantial streamlined, easily-generated reports across all savings on pre-printed stationery. key areas. Developed with the assistance of major Dealership groups, PMDS has been a leading In any modern dealership, its software must UNITS business management tool for 35 years. manage an increasingly complex array of functions. Today, these functions are UNITS was developed in consultation with Its intuitive interface allows Dealers to stay growing in number and complexity, whilst some of the world’s leading manufacturers, in touch with customers via SMS and email requiring ever greater integration with vehicle its seamless integration of information and marketing, provides live drill-down reporting manufacturers. Auto-IT is at the forefront operations across departments makes business on budgets and financials, and even ‘what-if’ of automotive Web-based and mobile app more efficient and profitable. When Windows- analysis to evaluate the effect on the business development, which help dealers and their based, it provides real-time capabilities on an of potential scenarios. staff meet the challenges they face every day. open platform.

PROFITABLE PRODUCTS SEPTEMBER 2016 7 Craig Lowndes, TeamVor tex

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1300 362 415 08/16 mtaasuper.com.au

This document is issued by Motor Trades Association of Australia Superannuation Fund Pty. Limited (ABN 14 008 650 628, AFSL 238 718) of Level 3, 39 Brisbane Avenue Bar ton ACT 2600, Trustee of the MTA A Superannuation Fund (ABN 74 559 365 913). Motor Trades Association of Australia Superannuation Fund Pty. Limited has ownership interests in Industry Super Holdings Pty Ltd and Members Equity Bank Limited. The information provided is of a general nature and does not take into account your specifi c needs or personal situation. You should assess your fi nancial position and personal objectives before making any decision based on this information. We also recommend that you seek advice from a licensed fi nancial adviser. The MTAA Super Product Disclosure Statement (PDS), an important document containing all the information you need to make a decision about MTAA Super, can be obtained by calling MTAA Super on 1300 362 415 or visiting mtaasuper.com.au/handbooks. You should consider the PDS in making a decision.

MTAA Super_Magazine ad_Craig_Lowndes_255x180_FA_0816.indd 1 10-Aug-16 2:25:47 PM SPONSOR FEATURE

MTAA SUPER TUESDAY TEAM EVENTS - TUESDAY 6TH SEPTEMBER 7:00PM MTAA SUPER CONTINUES TO SHINE

n the year to June 30, MTAA My AutoSuper Nonetheless, with interest rates so low, this is a Kingdom, gave the fund an enormous boost (Balanced) was the sixth-best performing difficult time for savers. The global economic in 2015. MTAA Super had invested in the Ibalanced fund in the country, returning 5.5 and financial situations are uncertain, and chain since 2006, yielding an average return on per cent. It is also the sixth-best performer shares, property and infrastructure are all seen capital of 23.5 per cent. over the past five years, with a yield of 7.6 per as expensive. There are no cheap gains to be cent, and sixth over the past decade. made, which suggests staying with a proven, That massive windfall has allowed the fund to consistent performer is the way to go. better hedge itself against currency risks, and Considering the competition stretches to more lower the risk across all areas of its investments. than 60 major super funds, that’s a remarkably The strong 2016 result comes on the back of Infrastructure assets, such as stakes in Brisbane consistent, high rate of performance. The MTAA Super’s rating as the top super fund of Airport and Flinders Port in Adelaide, median return over the past 12 months 2015, and continues a remarkable comeback continue to perform strongly. was just 3 per cent. The MSCI World Index after the liquidity troubles the fund suffered ex-Australia was up just 0.4 per cent over during and after the 2008 Global Financial With Ms Turner named Fund Executive of the the same period, while the S&P/ASX 300 Crisis. Year in 2014, and former Victorian premier benchmark rose only 0.9 per cent. John Brumby as chairman, those $9.2 billion of The $2.1 billion sale of Moto Hospitality, assets are in good hands. The strong performance is especially a chain of service stations in the United impressive given the incredibly low interest rate environment in which we currently find ourselves. MTAA has combatted this by directing a high proportion of its assets into infrastructure and unlisted property. Holding $9.2 billion in assets, MTAA Super has 15.7 per cent of its balanced portfolio invested in infrastructure, with 6 per cent in unlisted or direct property. The continued low rate of interest has justified that decision.

With inflation remaining low and investors looking for yield, MTAA Super chief executive Leeanne Turner believes this is the correct approach, and is confident infrastructure is not in danger of becoming a bubble. PROFITABLE PRODUCTS SEPTEMBER 2016 9 REVIEWS • SOCIAL MEDIA • REPUTATION

MORE REVIEWS

SNAP 21 KEY FEATURES: › 5X industry average of reviews › Post reviews to social media sites 60% › Boost your Dealership’s SEO OF YOUR CUSTOMERS › Dedicated dealership review page TO POST CREDIBLE › Review feed to your website & Facebook › No fuss 6 month contract ONLINE PHOTO › Complimentary ‘fun’ card pack REVIEWS › One low monthly price for all features

LEVEL 1, 350 SOUTH ROAD, HAMPTON EAST, VICTORIA PH: 1300 880 057 • www.snap21.com.au SPONSOR FEATURE

SNAP21 AUSTRALIA BREAKFAST - WEDNESDAY 7TH SEPTEMBER 7:00AM EARN FIVE TIMES AS MANY REVIEWS WITH SNAP21

ealers will understand how valuable it With Snap21, more than 60 per cent of • “Awesome, simple & easy...talked for a few is to their business to receive positive customers post a review. Of that 60 per cent, minutes and you get your car on the next Dreviews from their customers. An one-third share their photo and review on day...just like that...great!” opportunity to increase the number of reviews their personal social media. That is the kind of you receive by 500 per cent should be too good organic referral you can’t buy – except you can! • “Happy first car experience - wonderful to pass up. staff and process.” Instead of spending thousands of dollars per Reviews are hard to get. Most people don’t go month chasing such great publicity, Snap21 • “Excellent service and trusted Craig! to the effort of posting a review unless it is a costs you a fraction of that and provides Will definitely be coming back to Slaven negative one about which they feel particularly hundreds of positive reviews every day. Mazda in the future and recommending strongly. Snap21 lets you target review websites such as it to all my family and friends.” Google+, Facebook and more. You will also • “My experience was quick and easy. Just eight per cent of new car buyers post a receive review alerts notifying you every time Fantastic sale service from Lance, and review of their experience. So, if there were a someone posts a review about you. way to grow that to over 60 per cent, you’d be the girls were very pleasant to deal with all over it, right? Here are some of the outstanding reviews getting the finance and delivery sorted. I garnered via SNAP21. These are posted to the would absolutely recommend to everyone If you don’t know about Snap21, you need customer’s Facebook page and yours. Think of looking to buy a new car to go to Lilydale to inform yourself. It is the only reputation the reach: Hyundai.” management tool in Australia specifically designed for the automotive Dealer. It also • “Outstanding service experience from Snap21’s reporting features let you see exactly doubles as a highly-effective social media tool. beginning to end.” how your team is performing. You’ll also receive a monthly overview report detailing The number one reason customers don’t leave • “Extremely good service, very friendly how your team is doing. reviews is that they’re not asked to. The beauty staff and 100% help given.” of Snap21 is that it doesn’t feel like you’re Positive reviews also result in an improvement soliciting reviews – you’re providing your • “Was well supported from initial in your factory CSI rating, and consequently, customers with a photograph of them with enquiries to the point of driving off the reward. their new car. lot.” If you’re not using Snap21, you’re missing out.

PROFITABLE PRODUCTS SEPTEMBER 2016 11 SPONSOR FEATURE

MACQUARIE AADA DEALER SYMPOSIUM - WEDNESDAY 7TH SEPTEMBER 9:15AM MACQUARIE LEASING: GIVING YOU OPTIONS

hen selling a car, Dealers and sales thousands of dollars off staff must be aware of all the finance the recommended retail Woptions available to help get that price, and the team also prospective customer into a car. Whether they handles trade-ins, to save are in the market for a new car as a private clients more time, money buyer, or are looking to build a business fleet, and stress. you should make them aware of Macquarie Macquarie Leasing makes loans from as little Leasing. Your Lease provides commercial vehicle as $10,000 up to $250,000, with flexible terms finance, with options including chattel and payment options available. Travel-lovers With decades of experience and an mortgage, hire purchase agreements, finance will appreciate earning one Qantas Point for outstanding reputation in financial leases, novated leases, equipment rentals, fleet every dollar financed (up to 100,000 points). management, Macquarie expanded into leases and operating leases. Because the company also offers insurance, vehicle financing and insurance and has this can be conveniently financed under put together an expert team of car buying Whether business or personal, Macquarie the loan. specialists who negotiate hundreds of cars provides a comprehensive and personalised deals per month. Macquarie Vehicle Select is service, from quote to settlement, and handles It is your job to provide the customer with for private buyers, and clients regularly save all the documentation and liaison with the options, and few financing companies offer as seller. many as Macquarie Leasing.

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• SPONSOR FEATURE

FUCHS BUSINESS NETWORKING HOUR - WEDNESDAY 7TH SEPTEMBER 5:30PM FUCHS: LUBRICATING AUSTRALIA

uchs is the number one independent Focusing solely on lubricants allows Fuchs to with customers creates a feedback loop that lubricant company in the world, work with automobile manufacturers from the constantly improves and customises solutions. Fwhich for more than 125 years has development stage onwards. The company’s been supplying Australians with specialised investment in research and development The company’s values of Trust, Creating Value, lubricants. has lead to advances in lubricant technology Respect, Reliability, and Integrity result in and performance-enhancing oils, increasing an ethical approach to technical leadership, Headquartered in Germany but with effectiveness, efficiency, safety, reliability and acknowledging responsibility towards manufacturing facilities in Melbourne, Perth sustainability of its products. stakeholders, society and the environment, and Newcastle, 90 per cent of its products are while delivering leading technology and first manufactured locally. With an emphasis on people, Fuchs has class service. risen to its lofty status by caring about both Renowned for its personalised customer care, its employees and its customers, fostering a Fuchs is heavily involved in motor sport, the company bases itself on the three pillars of climate of cooperation, communication and sponsoring some of Australia’s leading teams Lubricants, Technology, and People. innovation. in V8 Supercars and drag racing, including Brad Jones Racing, Team 18, Zappia Racing, Fuchs makes more than 10,000 different The holistic approach to lubricants means the and Lamattina Top Fuel Racing. lubricants for a variety of industries, including company not just makes, but understands the mining, engineering, food, and of course the need and function of the 30 different greases Almost wherever there is machinery in automotive industry. and oils cars need. The close relationship Australia, you can bet a Fuchs lubricant is helping things move smoothly.

10,000 LUBRICATION PRODUCTS 4,800 HIGHLY QUALIFIED EMPLOYEES 100% FOCUSED

Fuchs, the world’s largest independent lubricants manufacturer design and supply innovative lubricating products and bespoke support packages. Talk to Fuchs at this years AADA Exhibition about the benefits of using German Technology developed for Australian conditions.

LUBRICANTS. TECHNOLOGY. PEOPLE. PH 1800 1800 13 fuchs.com.au *All data from V Facts 2015 The perfect partner no matter what animal your dealership is.

To rise above the rest you need the right partner. With over 120 solutions and services, Pentana Solutions can enhance your dealership’s productivity. We’ll help you navigate your future more efficiently and make your dealership the ‘best of breed’.

Visit the stand to find out more! Or contact us now for a consultation on 1300 007 925 or at [email protected]. SPONSOR FEATURE

PENTANA SOLUTIONS TRADE EXPO LUNCHEON - WEDNESDAY 7TH SEPTEMBER 12:30PM PENTANA SOLUTIONS: THE INNOVATORS

or more than four decades, Pentana Pentana Solutions’ Dealer management Each Dealer Management System (DMS) Solutions has been at the forefront of systems (DMS) now enjoy direct integration offers its own set of integrated functions Fautomotive innovation, technology and with Ferrari S.p.A.’s global systems. As of within the business intelligence software invention. December 2014, Pentana Solutions offers 14 that afford the greatest transparency integrated programs with Ferrari S.p.A. across available. Beginning in 1974 as a management the areas of Parts, Service, Vehicles, and CRM. accounting system introduced to Australia • Electronic Document Management by General Motors Holden, the company Products available to all clients include: - Pentana’s electronic document has grown into a holistic solutions provider management software, servicing 50,000 users in more than 100 • Showroom Solutions - Extensive DocuSmart,transforms the way accounts countries. functionality includes dealership- departments, and businesses , operate, changing reporting tools, time-saving automating and streamlining entire Pentana helps businesses be better businesses; automation and up-to-the-minute organisations. more profitable and efficient enterprises. A uploads. The latest software combines passion for the automotive industry and the intelligence and integration to deliver • CRM - Integrated campaign tools and knowledge gained from 40 years at the coalface comprehensive dealer management customer surveys provide the highest ensure the company never stops striving to systems that link and streamline every level of customer satisfaction. provide innovative software tailored to the area of the dealership in real-time. needs of Dealers. • Parts and Service - Online parts inventory • Distribution Software - A modular or locator, PareX, connects 60 million parts Employing 440 people in 13 countries, the fully integrated inventory control system sales worldwide, transforming the way company is still based in Melbourne. Through can help distribution businesses in many parts inventory and service departments the strategic partnerships developed over the areas including business intelligence, run. years, it creates integrated solutions to help warranty, vehicle management, clients grow their businesses. warehouse management, vehicle • Pentana is always on the lookout for the configuration, global parts trading, next advance in Dealership management A commitment to the latest technology saw electronic document management, solutions. Combined with its extensive Pentana invest 10 per cent of its 2015 revenue accounts payable software and more. history in the field, that’s why this in research and development in order to Australian-owned company continues to stay at the cutting-edge. A continued focus • Business Intelligence and Accounting – thrive, helping its clients and partners do on the future means the company is always A suite of business intelligence software likewise. endeavouring to develop new software products optimises the accounting and solutions. business intelligence needs of business. PROFITABLE PRODUCTS SEPTEMBER 2016 15 The better your Business Manager, the better your bottom line.

Allianz Advantage F&I Training Academy is already increasing the performance and profitability of over 66% of F&I Departments nationally.

With F&I becoming even more critical to maximise profitability, it's little wonder why Allianz Advantage is being implemented in so many dealerships nationally. Our industry specific competency training program delivers real-word training, as well as a nationally recognised formal qualification. Allianz Advantage equips Business Managers with the skills to increase F&I growth and profitability, and the confidence of a proven end-to-end sales and compliance process. Visit allianzadvantage.com.au to find out more and enroll now.

2015 Australian Banking & Finance Insurance Awards Best Claims Outcome of the Year, 2015 Australia and New Zealand Insurance Industry Awards Innovation of the Year, 2014 Australia and New Zealand Insurance Industry Awards Large General Insurance Company of the Year and 2014 Australian Banking & Finance Insurance Awards Best General Insurance Company. Allianz Australia Insurance Limited ABN 15 000 122 850. Allianz Australia Insurance Limited ABN 15 000 122 850. MKT102 08/16 SPONSOR FEATURE

ALLIANZ COCKTAIL EVENT - WEDNESDAY 7TH SEPTEMBER 7:30PM FORGING AN ALLIANZ

llianz Financial Services counts as its providing customised solutions in insurance, created the Automotive Intelligence Centre as clients some of the world’s largest retail warranty, assistance and ancillary products. an integral part of its value creation in 2014. Aand investment banks, asset managers, Its areas of research include strengthening venture capital, private equity funds, financial Allianz Global Automotive provides expertise Allianz’s position as a telematics partner, advisers and intermediaries. and support along the entire automotive value notably in connected cars; expanding the chain: from research and development to sales international scope of Allianz’s technical Its dedicated Financial Services Global and aftersales, thus enabling the development competencies in fields such as electro-mobility Practice Group underwrites and manages risk of globally applicable solutions for partners and autonomous driving, and forging for 85 million clients throughout more than and customers. The rapidly growing global new partnerships with industry players or 70 countries. The company employs 142,000 business unit is present in all major automotive research institutions to jointly develop new people and manages over a trillion dollars of markets. In cooperation with its partners, business models or mobility concepts. The assets. Allianz Global Automotive strives to enhance Automotive Intelligence focuses on three key processes at the point of sale, as well as areas: telematics, engineering and insights/ An integrated service approach, combining developing new markets by leveraging the innovations. experience, products and global reach, enables global presence and expertise of the Allianz the company to tailor the coverage to a client’s Group. Allianz Global Automotive provides each specific needs – from a standalone cover of its automotive manufacturer partners for a single risk to the largest multi-location The ambition of Allianz Global Automotive with a tailored product offering designed to international programs. is to be recognised as the Tier-1 Partner to meet their specific needs. The products are the automotive industry for insurance and completely integrated into the brand of the Allianz provides private and business mobility solutions, with a holistic business automotive manufacturer, supporting the insurance, asset management, and is the model as well as a deep understanding of the customer experience at the point of sale. The leading strategic partner of automotive automotive industry. product portfolio includes motor insurance, manufacturers regarding insurance and warranty, assistance and ancillary products. mobility services. The company works with With increasing focus on research and more than 40 car brands in over 30 countries, development, Allianz Global Automotive

PROFITABLE PRODUCTS SEPTEMBER 2016 17 ERIC IS A DIFFERENT KIND OF INSURANCE COMPANY.

LEARN MORE AT ERICINSURANCE.COM.AU

Making things better. Eric Insurance is the name that is driving Our passion for the automotive industry, innovation, the name that is changing the coupled with our progressive and customer automotive insurance industry for the better. centric style, enables us to build long and We’re not dictated by what people are already strong relationships with our extensive doing, we prefer to empower people to do network of car dealers and fi nance brokers. more. Make a change for the better and join the Australia wide Eric provide our partners with ever growing Eric Insurance network today. leading innovative products, fl exible pricing, powerful and intuitive delivery platforms and 1300 789 689 processes, all underpinned by personalised training, development and support.

Proud Principal Sponsor of the AADA Convention 2016. Eric Insurance Limited ABN 18 009 129 793 (AFSL 238279) SPONSOR FEATURE

ERIC INSURANCE BREAKFAST THURSDAY 8TH SEPTEMBER 7:00AM MEET ERIC

• Consumer Credit Insurance: (CCI) • Total Assist Insurance (TAI): If a vehicle ric Insurance is the 100 per cent is stolen or damaged beyond reasonable Australian-owned new company similar to BRI, takes care of car repayments should policy-holders be repair, Eric’s Total Assist Insurance can Eformed from the combination of Swann give added financial protection to cover Insurance and Avea Insurance. unable to work due to injury or illness. It can also cover loss of employment and the additional costs that may be incurred over and above what a comprehensive Specialists in automotive insurance, the board provide death benefits. insurer pays out. Expenses could include of directors includes Norman Newborn, who the claim excess, new car on road costs has served on the boards of Volkswagen and • Guaranteed Asset Protection Insurance and any personal items lost such as Subaru, as well as insurance and financial (GAP): if a car is damaged beyond repair sunglasses, child seats and tools. Eric institutions such as GIO, AMP and Suncorp. or stolen and not recovered, this product provides for up to $15,000 to cover any also covers any other costs incurred as Other directors include Pentana Solutions shortfall between the amount paid by a a result of the accident such as medical CEO Steve Kloss, and Jamie Johnson, who comprehensive insurer and that owed to or pharmaceutical. Eric’s TAI cover can both have two decades of experience in a financier. It will also pay up to $4000 for pay up to $5000, depending on the cover the automotive industry. Paul Myers has out-of-pocket expenses. chosen, to help out with these unexpected spent more than 35 years in motor industry costs. insurance. CEO David Pemberton has spent • Loan Termination Insurance (LTI): • Tyre and Wheel Insurance: can cover the more than 30 years in automotive insurance should circumstances (loss of cost of repairs needed as a result of tyre both in Australia and overseas. employment, accident, etc.) make it impossible for a policy-holder to meet car or wheel damage. Eric may also cover There’s an old saying in the car industry loan repayments, this product prevents towing, car hire and accommodation that ‘oils ain’t oils’. The same can be said of the need for the car to be returned to the costs if a vehicle breaks down more than insurance policies. Eric Insurance provides a Dealer to reduce the debt. The value of a 100km from home and can’t be repaired number of different products. vehicle can reduce faster than the amount the same day. owed to a financier, but LTI can cover the • Car Insurance: the one we’re all shortfall, up to $15,000. • Warranty: occasionally customers familiar with, with options including find themselves with an unexpected Comprehensive Cover, Third Party • Return To Invoice (RTI): the depreciation mechanical failure. Depending on the Damage, Fire and Theft and Third Party of a motor vehicle might leave an owner kind of failure, this may result in a Property Damage. exposed in the event of a total loss or substantial unplanned financial outlay. if their car is stolen and not recovered. Eric’s range of extended warranty options • Bill Reimbursement Insurance (BRI): to Eric’s return to invoice shortfall benefit can provide protection for the costs of help cover expenses in case of sudden provides critical coverage to bridge the unforeseen mechanical failure during changes in financial situation. Can cover gap between the value paid by the insurer the period of cover. The policy can also loan repayments and other bills, up to and the initial purchase price, helping reimburse the costs associated with $3000 per month. avoid added unexpected out of pocket towing, car hire, locksmith services and costs. in some cases accommodation.

PROFITABLE PRODUCTS SEPTEMBER 2016 19 More than just a place to advertise your stock carsales is with you every step of the way.

Our suite of solutions help dealers at every point of the selling process, harnessing the power of Australia’s number one auto classifieds site in giving you the reach, flexibility and control in moving your inventory, your way.

Photography Photography, carsales Image Find Great Stock Library, 360 Photography LiveTrade

Lead Management Inventory AutoGate, AutoGate Pro Reaching Management AutoGate 1.9 million monthly visitors who spend over Build Buyer Trust 50 minutes RedBook Inspect mobile Pricing Tools inspections, CarFacts on site LiveMarket History Report

Boost Your Reach Publish to Site Top Spot, Showcase, Australia's Number 1 Multi Listing, Top Deal, Auto Classifieds Site Ultimate Boost Promote Your Dealership Search Engine Marketing, Website Templates, Display Advertising, Main Event sales advertising

Source: Nielsen Digital Ratings Monthly Unique Audience figures - June 2016, Nielsen Time per Person - June 2016

Find out how your business can benefit at the carsales booth in the exhibitor area at the AADA Convention SPONSOR FEATURE

CARSALES LUNCHEON - THURSDAY 8TH SEPTEMBER 12:15PM CARSALES GOES FROM STRENGTH TO STRENGTH

he phenomenon that is Carsales.com Mr Roebuck significant new business Thecompany faces a renewed challenge to its continues to thrive, posting a full-year initiatives and the strong performance of market-leader status with the announcement Tnet profit of $109 million in August, a six Carsales’ Finance and Related Services division that Global car services supplier, Cox per cent increase on last year’s result. had the company in a strong position. Automotive, will merge its Australian businesses with CarsGuide. Thecompany’s revenue rose 10 per cent to “We continually seek to expand our breadth $344 million, as it added sales sites in Mexico and depth of services to provide an unmatched Another potential threat comes in the form of and Chile to continue its global growth. and frictionless experience to our customers,” Carzoos, AP Eagers’ used car disruptor that Carsales has also acquired RedBook Inspect, he said. will set up small stores in shopping centres to the mobile vehicle inspection service that buy and sell used cars from the general public provides a digital report, photos and road tests. “Integration of vehicle inspection services based on the historical average negotiated sale via our RedBook Inspect business and our price. This no-haggle approach is an attempt to “We need to be a world platform rather than (soon to be released) payment service via cut into Carsales’ used car dominance, which an Australian platform,” CEO Greg Roebuck PromisePay (a business we recently invested is the company’s biggest earner. said. in), are great examples of how we’re making the buying, selling and purchasing of cars Mr Roebuck said he was not concerned, “We are building a dynamic global business; easier and safer. having competed with some of Australia’s the economies of scale that come with this, biggest companies “from day one”. along with our world leading technology, are “Along with instant offer, products such as our helping us evolve our business. Dealers and New Car Showroom (released in June) will all Carsales generates a return on assets of 23.5 consumers have the same high expectations contribute to growth in the future.” per cent, compared to AP Eagers’ 6.55 per in all of our markets. As we continue to cent, so it’s fair to say shareholders are happy. transfer our world class technology and Increased Dealership new car listings over Its earnings before interest, tax, depreciation know-how into these markets we see improved the past year have helped Carsales grow its and amortisation is 49.5 cents from every performance. share of new car advertising, with Mr Roebuck dollar of sales. AP Eagers’ is 5 cents. recently reiterating that his company wanted “To once again deliver record full year results to cooperate with Dealers and manufacturers, Thenumber of new cars listed on Carsales is to our shareholders whilst consolidating our not compete with them. down in recent months, but that might merely domestic market leading position is testament be a reflection of the market. It would be a to the strength of the Carsales team and its Carsales leads the Australian automotive brave speculator who would bet against this ability to drive our domestic and international online classifieds sector with 222,000 listed success story. growth strategy forward.” vehicles. Of those, more than 138,000 are Dealer-listed vehicles.

PROFITABLE PRODUCTS SEPTEMBER 2016 21 Manheim proudly supporting Australian dealers

Special Event Auction Thursday 4:15pm AEST See our auctioneers in action at the AADA convention Thursday 4:15pm AEST.

• Premium quality FleetPartners vehicles on offer • Free freight • Signed Collingwood Football Club jumper • Mini Maton guitar • Trip for 2 to the Gold Coast 600 including flights, accommodation and corporate hospitality at the race • Buyer fees are reduced and will be donated to our charity partner Kids Under Cover • Food and beverages provided

For more information about Manheim contact Shane Taylor on 0418 343 499 For more information about the auction contact Matthew Elder on 0407 843 677 manheim.com.au $5,000 CASH* WIN VISIT OUR STAND FOR YOUR CHANCE TO WIN *See terms & conditions on the pass on your convention satchel. Must be present at draw to be eligible to win. SPONSOR FEATURE

MANHEIM LIVE AUCTION EVENT THURSDAY 8TH SEPTEMBER 4:15PM CARS AND CASH UP FOR GRABS AT MANHEIM LIVE AUCTION

ADA National Dealer Convention delegates have the chance to win $5000 Acash and bid on seven cars in a live auction conducted by Manheim. of travel, it has emerged as a tonal giant in its own right. Value: $1,200. thick and fast both from the floor and via the The auction is the last event of the 2016 internet. It’s a great chance for a Dealer to add Convention, and will include live online • Hugo Boss black leather jacket (Size to their stock with a bargain buy, or even pick bidding from all over Australia competing Small) Brand new fitted men’s leather up something for personal use. with bids by those physically present. The jacket from Hugo Boss. Value: $1,099. seven vehicles for sale will be on display on the A first at the AADA National Dealer Convention floor. • Framed Collingwood Jumper signed Convention, this event provides delegates by Craig Kelly and Nathan Buckley. with the opportunity to pick up an automotive One lucky delegate will win $5,000, just Signed by premiership player Kelly bargain, own a unique collector’s item, win for having their delegate pass scanned by and Brownlow Medallist (and arguably $5,000 and help disadvantaged kids. Don’t 10 different exhibitors at the Trade Expo. the greatest Magpie ever) Buckley, this miss out! Delegates must be in the room when the prize framed guernsey is sure to be a collector’s is drawn in order to win. item. Value: Priceless!

Also incorporated in the event is a charity • VIP trip for two to the Castrol Gold auction for Kids Under Cover, the not-for- Coast 600. As guests of Manheim and profit organisation dedicated to preventing DJR Team Penske, enjoy flights, two youth homelessness. nights’ accommodation and corporate hospitality at the event. Also includes a Items for sale in the charity auction include: VIP team dinner, fully catered hospitality in Team Penske’s corporate suite, a tour • Maton Guitar – Mini Maton EML-6 of pit lane and a visit to the DJR Team Maton is renowned as one of the world’s Penske garage. Value: $5,000. great guitar-makers. Touring musical Manheim is Australia’s largest automotive superstars make sure they get one. auction service, and the world’s leading Extremely popular, this small bodied provider of used cars. The live auction is sure guitar packs a big voice. Designed for ease to be an exciting event, with bids coming

PROFITABLE PRODUCTS SEPTEMBER 2016 23

PROFITABLE PRODUCTS AADANADA STUDY TOUR 2017 JOIN AADA NADA AT NADA 100 NEW ORLEANS - JANUARY 26-29, 2017

he AADA’s annual study tour to the Dinner. For the third year, AADA will play Held at the fabulous Mardi Gras World, with world’s largest auto industry convention host to this acclaimed gathering of leading special guest band Foreigner, this is a chance to Thas a special flavour in 2017, with NADA industry figures from the International Dealer network or just let your hair down and enjoy celebrating 100 years of operation. Association Working Group. the all you can drink, all you can eat buffet.

Thereis no better city in the world in which Special guest speaker will be none other AADA delegates will also celebrate Australia to celebrate than New Orleans, with its Mardi than NADA chairman, Jeff Carlson, a man Day at the NADA 100 Welcome Breakfast, Gras atmosphere, legendary music scene and with more than 40 years of experience in the at the acclaimed Court of the Two Sisters eclectic mix of people and cultures. automotive business, including owning Ford restaurant, featuring one of the most famous and Subaru dealerships. courtyards in one of the French Quarter’s As usual, AADA has put together an exciting most historic buildings. This will be followed program for this business-centric tour, with a Galatoire’s Restaurant is a Bourbon Street by an exclusive AADA NADA premier auto little time set aside to enjoy being in one of the institution dating back to 1905. Specialising dealership tour. world’s great party cities. in French Creole cuisine, the restaurant is still run by the fourth-generation descendants of All this is in addition to the inspiring Over four days, delegates will learn all the founder Jean Galatoire. In 2004, esteemed workshops, Super Sessions, and hundreds of latest news, ideas and innovations in the retail culinary organisation the James Beard new products and services on display on the automotive world, gaining a cutting-edge Foundation lauded Galatoire’s as the expo floor of the Convention. advantage over competitors who don’t take “outstanding restaurant” in the USA. advantage of this fabulous opportunity. Finally, AADA at NADA 100 will conclude AADA delegates will enjoy the magnificent with a Farewell Cocktail Party at the famous Delegates will also enjoy an exclusive food, fine wine, outstanding company and take Pat O’Brien’s Briar Suite. Renowned as one range of premium add-on benefits that no the chance to pick the brains of some of the of the most fun establishments in the world, other organisation can match. AADA tour leading minds in the retail automotive world. Pat O’Brien’s was established in the early participants will stay at the 5-star Omni 1900s and combines 18th century Spanish Royal hotel in the heart of the famous French Another event to look forward to is the Official architecture with French European style. The Quarter. NADA 100 Year Celebration Party. Delegates elegant double parlour features a full bar, from all over the world will celebrate 100 years copper grand piano and a private Bourbon A highlight of the tour promises to be the of the world’s largest auto industry association. AADA International Industry Relations Street balcony. What a way to finish!

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ost of us have heard about ‘The Cloud’, • Reducing your IT costs and wages. • The flexibility to allow your employees the mysterious storage capacity in the to work from anywhere. In the modern Mvirtual ether, on – or in – or at, which • Eliminating costly infrastructure world, it makes no sense to shackle staff we can store our photos, music, files and requirements and allowing you to focus to a single desk in one location. The anything else we have in digital form. on your business’ core objectives. Cloud allows them to access your data from home, on the road, on the train, or • Allowing you to scale your storage needs We know that it’s there and that we can use it – even poolside in Bali. but do we actually know what it is and how it up or down at a moment’s notice. works? And why it is great for business? • Automatic updates. Some Cloud • Enabling you to access your data providers include automatic software anywhere, at any time, on any device. What is it? updates, as well as access to the latest upgrades in servers and processing ‘The Cloud essentially means the Internet: a • Protecting and backing up your data in power. vast network of computers. As there are many case of power failure, cyber attack, virus or natural disaster, allowing your business different Internet Service Providers (ISPs), • Productivity. The ability for multiple users to continue operating smoothly in times so there are many Cloud providers as well. to work on the same data simultaneously of crisis. They are third parties who share processing without the need to wait for it to be saved resources and data on demand. It relies on • Encouraging and facilitating and emailed saves time. sharing of resources to achieve coherence and collaboration. The Cloud allows you to economy of scale, similar to a utility (like the • Reliability. The use of multiple redundant share your data across multiple locations, electricity grid) over a network. sites makes well-designed cloud amongst employees, contractors and third computing great for business continuity parties. You can even choose a Cloud Instead of storing all your business’ and disaster recovery. information on in-house servers that are costly model that allows you to share your to purchase, run, power and maintain, you accounting records with your financial Of course, as with anything online, there are can outsource it to The Cloud. The benefits are adviser. security concerns. Your Cloud provider has many, including: access to your data and could accidentally

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delete it. Your data is ‘out there’ and therefore You can and should take all possible steps to • Using a Cloud service that has been potentially vulnerable to hackers. But this is mitigate your risk. These include: assessed, certified and accredited against true wherever you store it, if the servers used the appropriate ISM. are connected to the Internet. • Involving senior management and technically-skilled staff in implementing security governance.

• Undertaking regular security-related activities such as change management.

• Developing and annually testing an incident response plan covering data spills and electronic discovery. This should also include the means to analyse evidence, such as time logs, hard disk images, memory snapshots and metadata.

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PROFITABLE PRODUCTS SEPTEMBER 2016 27 AdvancedProtection-Ad-180x127.indd 1 12/08/2016 5:45 pm PROFITABLE PRODUCTS YOUR ONLINE REPUTATION

he world is changing rapidly. Who would they know can really spike your inquiries. doubles as a highly-effective social media tool. have thought a decade ago that Facebook Twould be such a pervasive influence in Word of mouth still works Thenumber one reason customers don’t leave society? Who had even heard of Facebook 10 reviews is that they’re not asked to. The beauty Dealers will understand how valuable it is to years ago? of Snap21 is that it doesn’t feel like you’re their business to receive positive reviews from soliciting reviews – you’re providing your Times have changed, and they’re going to their customers. Reviews are hard to get. Most customers with a photograph of them with keep changing. The online genie is out of the people don’t go to the effort of posting a review their new car. bottle and there is no shoving him back in. unless it is a negative one about which they feel A business’ online presence is only going to particularly strongly. With Snap21, more than 60 per cent of become more important as the distinction customers post a review. Of that 60 per cent, Just eight per cent of new car buyers post a between life and virtual reality becomes more one-third share their photo and review on review of their experience. So, if there were a and more blurred as time goes on. their personal social media. That is the kind of way to grow that to over 60 per cent, you’d be organic referral you can’t buy – except you can! A crucial part of managing your online all over it, right? presence is ensuring your reputation in Instead of spending thousands of dollars per If you don’t know about Snap21, you need cyberspace is as strong and positive as possible. month chasing such great publicity, Snap21 to inform yourself. It is the only reputation Advertising and marketing help potential costs you a fraction of that and provides management tool in Australia specifically customers become aware of you, but word of hundreds of positive reviews every day. designed for the automotive dealer. It also mouth and recommendations from people

28 | PROFITABLE PRODUCTS SEPTEMBER 2016 PROFITABLE PRODUCTS

Snap21 lets you target review websites such as match the demographics you want to market Dealership could target a Holden Racing Team Google+, Facebook and more. You will also to, and those on your Dealership’s database. Promotion at anyone who has liked the HRT receive review alerts notifying you every time page on Facebook, just by checking a box someone posts a review about you. By all means invite people to ‘like’ your page, when ordering their ad. but don’t rely on that method to reach them. Snap21’s reporting features let you see exactly To market successfully on Facebook, you have Facebook has helped create a complete lead- how your team is performing. You’ll also to buy advertising on Facebook. The good generation strategy without having to use the receive a monthly overview report detailing news is, it’s cheap, and highly successful. actual website or be reliant on the website’s how your team is doing. landing page. Its algorithms can ascertain Cost per lead can be anywhere between $4 a which groups of people are clicking on your Positive reviews also result in an improvement lead and $40 a lead, which represent good to ads, and then target those groups, allowing you in your factory CSI rating, and consequently, great value for your dollar. to change the creative to suit the audience. reward. Traditional media approaches don’t work in It even allows you to test your campaigns, to Facebook advertising is a must the new landscape. You can’t just run an ad full determine which approach is more likely to of photographs of cars, with prices attached. succeed. You can test three ads at once, let Facebook has the potential to revolutionise Users will skim right past that. To our brains, Facebook decide which one is working best the way you target customers, maintain Facebook is a social experience, and our brains and then run with the best one. relationships, and cut the costs of advertising. are drawn to faces. Using a tool such as SNAP21 in conjunction Your Dealership might have a Facebook Facebook allows you to target potential with Facebook advertising is the current page, but are you using it to best advantage? customers via their interests. Facebook has best practice approach to online reputation Probably not. You should use Facebook to refined the process so well that it allows you management. It can make a massive difference target three specific groups of people: those to present ads aimed at broad groups or very to your bottom line. who have visited your website, those who particular niches. For example, a Holden

PROFITABLE PRODUCTS SEPTEMBER 2016 29 PROFITABLE PRODUCTS MEDIA: THE STATE OF PLAY

The company’s global president Sandy Schwartz said it had identified Australia and New Zealand as growth markets.

Despite branding efforts and a boost in online traffic, CarsGuide continues to trail market leader Carsales, which dominates the Australian automotive online classifieds sector with 222,000 listed vehicles. Next comes eBay’s Gumtree with 176,017 vehicles, followed by CarsGuide (110,987), and Trading Post (20,252). t’s hardly revelatory news that advertising business CarsGuide, instead launching a new After taking a 55 per cent stake in the spends, like so much in today’s society, have venture focusing on holistic content-driven CarsGuide joint venture five years ago, News Imoved largely online. marketing solutions for clients. Corp has been looking to break a short leash Not much more than a decade ago, newspaper CarsGuide will merge with Cox Automotive, in recent times. classified advertising was riding high on the part of US giant Cox Enterprises. The News Corp’s decision to move on from the wave of a 15-year long growth cycle of 5 to 10 agreement is subject to regulatory business marks the company’s second major per cent per annum. Now, most are on their requirements, shareholder approval and a strategic move in the fast-growing online way out of print. The newspaper, for so long a capital raising. The deal is due to be completed classifieds sector in recent months. In June, staple of life, is dying. in late 2016. Financial terms were not News Corp Australasia executive chairman disclosed. A PricewaterhouseCoopers report predicts Michael Miller unveiled a partnership with that newspaper circulation revenue will halve Cox Automotive is part of the Cox Enterprises jobs website Seek. in the next five years, from $1.218bn to $612m. conglomerate controlled by the Atlanta- Meanwhile, research put out early this year Digital revenue will rise from $76m to $372m. based billionaire Cox family. In addition to by Morgan Stanley’s global team of media Print advertising will fall from $1.66bn to its automotive business, the company owns analysts concluded that in the Australian $833m, while digital advertising grows from newspapers, television stations, radio stations market, global tech players such as Google, $435m to $637m. Australia’s online classifieds and an accelerator designed to boost start-ups Facebook and Instagram are taking all the ad market is worth $1.4 billion. and entrepreneurs. market growth. Digital circulation revenues are expected Cox Auto is a provider of vehicle remarketing On Morgan Stanley’s figures the global media/ to become 38 per cent of total circulation services and digital marketing and software technology players next year will collectively numbers by 2019. solutions for automotive dealers and extract $4 to $5 billion worth of advertising consumers, and wants to transform the way revenue - representing 35-40 per cent share of News Corp Australia announced in August the world buys, sells and owns vehicles. that it would sell its stake in online classifieds the total pool of approximately $14 billion in Australian ad revenues.

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By 2020, Morgan Stanley forecasts that to 9 per cent per annum out to 2020. to $3 billion, or around 2 to 3 per cent of total internet/online’s share of the total pool will revenues. have risen to 55 per cent, adding even that • Radio: Modest positive growth in could be a rather conservative estimate. ad spend of 2-3 per cent per annum Facebook Inc’s ad revenue grew by 57 per cent expected for the next 3 years, before in the most recent quarter and, like Google, The leakage to global players increased 24 per turning negative in later years as internet it doesn’t break out individual results for cent, or around $1 billion, in 2015. streaming players such as Spotify and Australia. Pandora pick up listeners. In March, Manheim Australia — under the But once again, with the benefit of Morgan umbrella of Cox-Automotive — purchased • Outdoor: The only traditional media Stanley’s spread sheets, Facebook’s Australian local firm, Dealer Solutions. category experiencing growth in ad ad revenues last year were estimated to be spend, growth forecast at 7 to 8 per cent in the range of $500 to $600 million, also Morgan Stanley’s breakdown of the prospects per annum for the next few years. equating to roughly 2 to 3 per cent of the for traditional media is not happy reading: global $US18 billion revenue stream. Compare that to likes of Google and Facebook. • TV: Ad spend is forecast to flatline Morgan Stanley found that the giant global with 1-2 per cent growth for next few Google - or more correctly its holding media/ad tech players currently capture 70 to years, before declining beyond 2020 as company Alphabet Inc - in just its most recent 80 per cent of the internet/online spend ad streaming and internet TV growth gain quarter experienced revenue growth of 21 per spend in Australia. viewers. cent. Despite their already substantial size in this • Newspapers: Ad spend is expected to For the full year it is forecast to rake in $US75 market, the company estimated Google and decrease sharply by 7 to 8 per cent per billion ($A103 billion) in revenues. Facebook still grew revenues between 29 per annum out to 2020 based on declining cent and 61 per cent in Australia in 2015. readership and circulation. Google doesn’t disclose individual Australian results, but on Morgan Stanley’s estimates, full It’s a new world. • Magazines: Ad spend set to decline by 8 year revenues would be in the order of $2.5

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AustrAliAn olympic ROXY JACENKO’S teAm pArtner BOMBSHELL Desperate act Tahanee Paterson was so enraged that nothing was being done to stop speeding drivers in her Ferntree Gully street that she took the law into her own hands. A-list queen REPORT PAGE 3 in the fight of her life

weeks after No.1 WITH NEWS Broken online at knoxleader.com.au, 12.01am on July 21 hubby jailed LAWRENCE PINDER

TOP FOUR, Picture: HERE WE COME

NOT-SO MELLOW YELLOW: Sam Jacobs, Eddie Betts and Charlie Cameron celebrate during Adelaide’s 60-point win over Carlton at the MCG yesterday. The win was the Crows’ seventh in a row and elevated them into third spot on the AFL ladder. Picture: QUINN ROONEY/GETTY IMAGES LIFTOUTCrossing INSIDE deathtrap ANGRY MP ASKS: ‘HOW MANY PEOPLE DO THEY WANT TO DIE?’

Kimberley Seedy tm Police were told a car stopped to was heartbroken and and extra warning signs were AUTHORITIES were warned as let the 60-year-old cross but a BRIANA DOMJEN Turnbull claims victory, pledges action after wake-up call put in. But six months later, an 83- day, waiting for someone to be hit stunned at the diagnosis. far back as 2009 about safety small truck then rear-ended the Source: emma conducted by Ipsos MediaCT, 12 months ending March 2016. Nielsenyear-old man was killed there. Digital on the pedestrian crossing or forRatings Monthly, March 2016. “I don’t think there is concerns at a Wantirna pedestrian car, causing it to hit her. PETER JEAN In 2012, local businesses cars to run into the back of anything that could shock crossing where a woman was last The woman was taken by CELEBRITY publicist Roxy POLITICAL REPORTER petitioned VicRoads to improve each other. It will happen again, me more now,’’ she said. week hit by a car and killed. ambulance to the Royal Jacenko has revealed she is safety at the site. it’s not a matter of if, it’s when,” MY CANCERJacenko broke the news to FIXING Butthe Budget,lights were strength- never installed Melbourne Hospital in a Ms Barnes said. She called on battling breast cancer after critical condition but died Louise Barnes, from nearby husband Oliver Curtis, who ening theon the economy zebra andcrossing pro- at the VicRoads to install pedestrian- about midnight. business Australian discovering a tumour just was jailed last month, in a tectingintersection health and education of Boronia Rd and activated lights at the crossing. In 2009, Bayswater state Liberal Manufacturing Technology weeks after her husband prison phone call which left are theMountain top priorities Highway, of a re- where the Ms Victoria said: “Two deaths is MP Heidi Victoria wrote to Institute Limited, said there were was jailed for insider trading. turnedRingwood Coalition Government,woman was hit about two too many ... How many people him “a broken person”. VicRoads outlining community near misses at the intersection An emotional Jacenko, Prime1.30pm Minister on Malcolm July 18. do they want to die?” Turnbull has declared. concerns about the crossing, almost every day. who now faces surgery and î FULL REPORT PAGES 4,5 “You hold your breath every VicRoads did not respond to radiation treatment, said she He formally claimed victory requests for comment by deadline. in the federal election yester- Flowers left at the crossing. PRIME day and thanked the Austra- lian peopleOptimistic, after Opposition Engaged and Focused on Learning Leader Bill Shorten conceded defeat. They have pledged to Up IN try to workThat’s together for the KNOX difference CRISIS COURT good of the nation. The Co- alition is on track to win a one or two-seatYear lower 7 housein 2018 ma- Open Morning, Wednesday 10 August, 9.00am pOKEMANIA jority, after its eight-day politi- » P14 cal near-death experience.BOOKINGS ESSENTIAL LOZ’S BAIT & SWITCH » SPORT Sheriffs take on gamers MOVER 31 Daley’s gamble to kickstart new Blues era ELECTION THE CHALLENGES THE SENATE REPORTS PROFITABLE PRODUCTS SEPTEMBER 2016 THE SEATS PAGES 6-9 V1 - TELE01Z02MA 2016 THE PRIORITIES

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HOW CORPORATE TRAVEL MANAGEMENT COULD BE ACTUALLY SAVING YOU MONEY

here has been a lot of speculation on the company travel. The rebate can be up to five get advance warning of upcoming airfare need for corporate travel management per cent of your spend, which would result in deals, which means they can jump on the deals Tand whether it’s more cost effective $12,500 back into the company coffers if your before they sell out. for businesses to have their own staff make spend is $250,000 per annum. Even if you only bookings online via an airline website or spend $20,000 per year, you could get around Reports and Travel Policy Control various travel sites. You might be surprised to $400 back! Some programs even offer points learn that booking online is probably costing to businesses for things they’re already doing, Corporate travel management companies you more than the service fees that corporate from using a credit card, to buying office can also provide recommendations to create travel management companies charge. Check supplies, paying for business insurance, hiring a company policy with strict adherence out some of the reasons why: staff, business travel, and much more. to corporate savings. This can involve implementation of the best fare of the Travel Management vs the Internet – a case Buying Power day policy, negotiated airfares and regular study: reporting. This helps to achieve a regular SME corporate travel management companies saving of over 35 per cent for most companies. It is not uncommon for personal assistants, have great buying power, due to the high travel coordinators or travellers to be spending number of room nights they book with hotels, Online Booking Tool up to one hour a day on a simple point-to- cars that they book each year, and flights that point domestic flight. This could have been they book every day. Not only from their In some cases the corporate travel arranged in less than five minutes by utilising individual office, but from the network that management company will have an online the services of a travel management company! they are a member of (such as Helloworld for booking tool, which will enable travel bookers Up to one hour on one simple point-to-point Business and American Express Travel Partner to create bookings that are within the company airfare booking is just not productive or Network). policy. The travel policy is implemented within efficient. Have a look at the case study below as the online tool, so that bookings outside policy a reflection on time saved for your staff, whose These vast networks negotiate with suppliers are either denied, or authority is required time and remuneration could be better spent to ensure their members have the best before confirmation. doing the job they were hired for: value for money, which they then pass on to their clients. This can be anything from The best booking tools mean that travel Airline Rebate or Business Programs special airfares that are not advertised in the bookers can view all available airlines on marketplace to complimentary extras with one screen, along with all car hire and A good corporate travel management your hotel bookings, such as breakfasts, late accommodation options requested. This cuts company will assess your travel needs and check out and airport transfers; not to mention down the time required in opening various recommend an airline program that will either discounts on your airline club membership, airline websites, then hotel websites and finally result in an annual rebate based on your travel via a corporate scheme. These networks also car hire websites. spend, or points that can be used towards PROFITABLE PRODUCTS SEPTEMBER 2016 33 PROFITABLE PRODUCTS

Duty of Care – Know where your travellers are at any given moment YOUR STAFF ON THE INTERNET Time Taken Apart from the savings that you could be ACTION At Best At Worst making by booking your corporate travel via a travel management company, there is the 1. Connect to internet .30 sec 1 min massive benefit of being able to locate all of 2. Log onto relevant website .30 sec 1 min your travelling personnel within minutes, in 3. Navigate way through site .30 sec 1 min the event of an emergency. Corporate travel 4. Find appropriate flight options 1 min 5 mins managers have access to reports that will locate each and every traveller at any given time. 5. Making booking (entering same data each time) 2 mins 5 mins 6. Check Qantas website (alternate airline may have great seat 9 mins 20 mins There have been cases of corporate travel availability) Repeat steps 1 - 5 managers being alerted to an emergency 7. Find appropriate hotel 5 mins 10 mins event (such as when Qantas grounded their fleet), tracking all travellers within minutes 8. Making accommodation booking 2 mins 5 mins and rebooking them all on alternative airlines, 9. Ring car hire company (dependent on hold time) 2 mins 5 mins before the event hit the news and all flights 10. Produce itinerary 2 mins 5 mins sold out. The travellers were advised of their ONE BOOKING TIME TOTAL 24 mins 30 sec 58 mins new flights before they were even aware that the airline had stopped all flights. CHANGES 11. Call Airline to make changes or log on to the internet 5 mins 10 mins All things considered, it would undoubtedly 12. Repeat steps 8-10 per relevant changes 6 mins 15 mins be within your best interests to consider a ONE BOOKING + ONE CHANGE TIME TOTAL meeting with a reputable (ATAS and IATA 35 mins 30 sec 1 hr 23 mins accredited) Corporate Travel management Average Two Bookings per day + one change ach 1 hr 10 mins 2 hrs 46 mins firm to discover the savings you could be VIA YOUR CORPORATE TRAVEL MANAGER making now! Time taken to contact your corporate agent to make all 2 mins 10 mins arrangements in one phone call or e-mail.

SAFETY SELLS.

After walking your customers through the showroom, walk them through the updated ANCAP website.

The ANCAP website lists the safety ratings for more than one thousand different makes, models and variants with the ability to access crash test results, photos and videos all from the one screen.

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epending on market conditions, selling choose to have the auction house pay out the best chance of attracting the best price. your house at auction can bring a any finance on your behalf and pay you the Savvy auction buyers will look for cars with Dgreater price than going through the difference, further reducing your paper-chase. roadworthy certificates, or at least full service usual channels, but the same is not true of histories. motor vehicles. Like a house auction, the price you get will depend on how many people are interested in Pros of auction sales: There are some advantages, such as the the car you have for sale. • Potential for quick sale advertising and exposure the vehicle will • Quick payment receive. Most auction houses have their There are steps you can take to give yourself • The right car can sell for more than own websites, on which cars for sale will be expected. displayed.

Dozens of people visit auction houses each day, plus up to 1000 on the day of the auction. If you’re lucky, a couple of thousand prospective buyers might check out your car before sale.

However, the price you get at auction is on average 10 to 30 per cent cheaper than at the Dealership, according to Pickles Auctions.

Offsetting this, you can set a reserve price, and most auction houses will take care of the paperwork on your behalf. They will handle government red tape, and you can usually

36 | PROFITABLE PRODUCTS SEPTEMBER 2016 PROFITABLE PRODUCTS

Cons: at auctions grows every year. beat the price you would get selling the car • The car might not sell, and you have to out of your used-car department. pay the auction house whether it sells or That means auction prices are also rising. not Although it depends on the car in question. Why pay the auction house when prospective buyers come to you every day? • The car could get damaged. An in-demand model, with full service history, popular colour, low mileage, leather interior It’s an option worth exploring, but ultimately, In only 10 or so years, 90 per cent of those and one owner is likely to attract a good price. in most cases, Dealers do better selling cars buying cars at auction were Dealers. That is themselves. changing. Consumers are becoming more Still, with buyers becoming smarter and savvy, hunting bargains, and their attendance information everywhere, you are unlikely to

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TRAINING YOUR STAFF: WHAT’S THERE TO LOSE!

ike most businesses, the quality, 2. Staff Turnover professionalism and expertise of Reduces Lemployees is of utmost importance to any If you train and Dealership. invest in your staff they know As customers’ expectations of a seamless and you are interested rewarding business interaction are always in their skill on the rise, the complexity of meeting these development. The expectations is a continual pressure on result is they tend employees. to stay longer and contribute more Employees have the dual role of not only to the business. doing the task at hand, but also improving and Recruiting bettering their knowledge along the way. new staff is an expensive and time-consuming exercise. up to date with the latest in workplace This is where employers can assist with a well Training your existing people is a far safety and health issues. This will result thought-out and relevant training program better option. in reduced incidents and consequently that will expand the employees’ skill set, to claims, which are both costly and time better improve the client’s overall experience. 3. New Technology Uptake consuming. Well trained employees are better at, Training of staff is a win/win, with many and more willing to take on board, new 6. Increased Levels of Job Satisfaction benefits for both the business and the technology. This assists in keeping your Employees enjoy learning and rise to the employee. business at the cutting edge of business challenge of taking on new knowledge These include the following: practice. and the responsibilities that come with their improved skill set. The wellbeing 1. Productivity Increases 4. Decreasing Supervision of the employee will also be reflected in Well-trained employees know what they If you have fully and well-trained staff reduced absenteeism, mistakes and stress are doing, make fewer errors and know the need to micro-manage and keep a in the workplace. how to make well-informed decisions. constant eye on employees is reduced. The quality of the work will also be This frees up managers to do what they So, irrespective of whether you are training improved with the on-flow being an are employed to do: make decisions. your people to improve sales, computer or improved customer experience. presentation skills, any investment in your 5. Reduce OHS and Harassment Issues employees is an investment in your businesses’ Well-trained staff are more likely to be future. 8316 Stocks HALF Pg AADA Ad Aug 2016 V3 OUTLINED.indd 1 17/08/2016 4:20 PM finance Australia’s ONLY Op2ma’s multi-dimensional F&I menu will help Business Managers increase Multi-Dimensional productivity, improve efficiency, meet compliance requirements and reduce error. F&I MENU  Web-based 24/7 access  iPad and smart device compatible  Tracks all quotations  Create your own option levels  Calculates all commissions  Links to Pentana Solutions (optional)  Add multiple insurers and financiers  Sell at delivery or Point of Sale

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MAINTAIN YOUR WORKSHOP

ny Dealer reading this will know that the service department is potentially Aone of their great profit centres, so it makes sense to invest in the best equipment and maintain it to a high level.

Thereare also occupational health and safety laws to abide by, with heavy punitive measures if breached, as well as the potential for injury or even death.

It makes cents embracing modern technology and tools. basis to ensure that all functionality is as Franchised motor Dealers are locked in a They are not modernising in a way that high as possible. This is so that if when battle for service business with independents. enables the quality experience that customers using the specific piece of equipment, a Dealers usually can’t compete on price, so have come to expect from other well-regarded fault was to occur, then the workshop must maximise their advantage when it comes retailers such as Apple. By integrating would not be liable to any possible legal to product knowledge and specialisation. technology with well-designed processes, these action being taken against them. companies set the standard for convenience, Studies show that consumers would prefer to value and trust; the automotive industry If any equipment is found to have any have their car serviced by factory authorised would be well served by learning from faults whatsoever, the dealership could Dealership technicians, even though they these examples. Dealers today have modern be subject to legal action. If a piece of perceive Dealership repairs and service as convenience technologies available to them— equipment were to break whilst working more expensive. Maintenance packages and they just need to embrace them.” on a customer’s vehicle and damage to the satisfying service experiences contribute to vehicle was to occur, your workshop would increased customer loyalty. Safety first be at fault. This makes carrying out regular checks and maintenance on all workshop We operate in an increasingly fickle Service workshops are full of equipment equipment vital to the reputation and marketplace, with customers more savvy and that requires regular physical inspection future of your workshop. willing to shop around. Yet, conversely, as we and, if required, preventative maintenance. have seen with ‘The Cult of Apple’, today’s If a garage is using equipment that has not Experts recommend equipment such as customers are prepared to be ‘customers for been maintained in the correct way, there tyre changing machines, brake rollers, life’ of brands they love and trust. That’s why it could be some legal ramifications. It is the roller shutter doors etc. are physically is crucial for service departments to provide an responsibility of the owner to ensure that all checked on the first Monday of every exceptional experience. equipment that is being used in the workshop month by a master technician or workshop has been maintained properly so it meets the controller. In addition to this we have a As Jim Roche, Senior Vice President of requirements set by certain regulations. robust defective equipment procedure Marketing and Managed Services for US which reports any defects to Service fixed operations specialists, Xtime, says: Thoroughexamination of all workshop Managers, who can make a decision to “Dealerships often limit themselves by not equipment needs to be carried out on a regular repair or replace any defective equipment.

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hile the automotive engine has made used in a modern twin cam engine would be To further assist in keeping modern engines massive developments since the too thick and effectively clag up the engine’s running, modern engine oils also contain a W1950’s, when the average family car fast-moving operations. number of other additives. made do with as little as 18kw and were, to say the least, somewhat agricultural in design, so When you are choosing an oil for your vehicle Theseadditives include detergents to break too have engine oils changed. you will notice that all have an SAE (Society up sludge, anti-wear additives, corrosion of Automotive Engineers) rating. This is an inhibitors, alkaline additives to reduce acidity Originally, engine oils were relatively simple indication of the oil’s viscosity characteristics and oxidation, friction-reducing compounds compounds. Many of them were based on across a range of temperature criteria. The such as Teflon compounds. plant-based compounds such as castor oil. As gradings are rated from low to high viscosity mineral oils developed in the early 1900s and as 0, 5, 10, 15, 25, through to 60. If shown with Despite all of these technological advances as different engines, such as overhead cam and a W this indicates they are rated for winter, i.e. over the years,… no oil lasts for ever. twin cams came into everyday use, not only cold starts. Thecombination of high temperatures, the viscosity but the other properties of the oil internal combustion, soot, friction, dirt and needed to keep pace with these changes. To complicate matters further most oils are classed as multi-grade oils. That is they metallic wear particles all take their toll. Thebasic properties of an engine oil are are effectively an all-season oil, and this is Effectively the oil’s integral properties begin measured in a number of ways. One of the indicated by a multi grade rating shown to fail. If you continue to operate the vehicle, most important is the oil’s viscosity. The as a figure such as 10w-30. The first figure ultimately the oil’s viscosity and protective viscosity is a measure of the oil’s thickness, i.e. indicating viscosity at cold temperature, the properties will change and severe engine a measure of its resistance to flow. In an engine second at 100 degrees Celsius. damage can be expected. the viscosity must be high enough to maintain Of course, ideally the oil will have been an effective film and low enough to flow Modern engines have strict guidelines changed before this occurs. around the engine parts. regarding the correct engine oil and the use of an oil with an incorrect viscosity could result While the majority of drivers leave the oil To put it into context, if you put a high in severe engine damage. selection to their service department, it is viscosity oil in an old Holden grey motor, the important that if for whatever reason you need oil would slip through the engine and sit in the In addition to the changes over time regarding to top up or replace your oil that the correctly sump, and never cling to the internal engine the lubricant’s viscosity, modern engines and specified product is used. components. Alternatively, a very viscous oil consequently modern engine oils are operating at extremes unheard of fifty years ago.

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CLEAN CARS SELL!

t goes without saying that the better your underside of the car. Prospects invariably 7. Clean upholstery and carpets are stock presentation, the better your chance of look under the vehicle and if a layer of important to the car’s internal Iselling the product. mud is all they see it is a definite turn off. presentation, including under and between the seats. Ensure all stains are Whether it’s selling fruit, meat, clothes or cars, 2. Detail the engine bay. Again one of the removed from carpet. If floor mats are you need to show off the product to its best key areas prospective buyers look at is worn or badly stained, replace them. advantage. With cars this, of course, means the engine bay. Don’t be tempted to use a having the showroom and car yard vehicles high pressure hose as damage to vehicle 8. Make sure all glass areas of the vehicle presented in an ‘as new’ condition. electrics may occur. Make sure that any are well polished and clean. Be very past evidence of oil or coolant leaks are careful where tinted films are used, as Whilst new cars arrive prepared for sale and removed. some cleaners can damage the film. If are basically supplied in a pristine state, the aftermarket tint film is damaged it will be condition of used cars, as traded, can range 3. Clean tyres and wheels. Good looking best to remove it, rather than present in from basically presentable to out-and-out polished alloys and clean tyre sides are poor condition. disgusting depending on the previous owner’s an integral part of a car’s presentation. cleanliness and hygiene standards! Be careful not to use abrasive cleaners or 9. Check the boot, glove boxes and storage wire brushes, which will scratch the shiny areas are clean and don’t contain previous Where a quick vacuum and a run through a alloy surface. owners’ belongings. drive-through car wash may suffice for the day to day drive, this will not even come close to 4. Dry the car after washing and after rain. 10. Lastly, be aware of how the car smells. the standard required by a discerning buyer. Invest in a high-quality leather chamois. Certain smells can turn off a prospect Water spots, especially on black or dark instantly. Body odour, smoke, pet smells Remember that customers are often viewing cars, really affect the car’s ability to shine. and sour milk or the like are not only the used car option alongside brand new repugnant, they also indicate a lack of vehicles and have a ready point of reference 5. Polishing and waxing the car will make care from the previous owner. Anti- as to how the car should look when new, the car look the part. A shiny car is a bacterial sprays can assist with these gleaming, clean and unblemished. given, but avoid waxing any plastic areas issues. as wax build-up will leave a white residue. While the ancient proverb ‘Cleanliness is next As you can see there are many areas involved to Godliness’ may be a bit jaded, in the car 6. The interior is just as important, if not in showcasing a car in a well presented trade it certainly rings true. Making a good more important than the exterior. Pay and spotless manner. Fortunately there are first impression with immaculate presentation particular attention to the headlining professional organisations that can assist with will put money in your pocket. and the instrument panel, these areas are quality detailing and the supply of specialised where the eyes go on entering a car. A basic guide to detailing your stock: equipment to make the task of having a sparkling stock of cars so much easier. 1. Wash the exterior of the car, including the PROFITABLE PRODUCTS SEPTEMBER 2016 45 PROFITABLE PRODUCTS CORPORATE APPAREL... LOOKING THE PART.

once explained, should be happily taken on board by employees.

Whilst some may decry the loss of personal individuality in choosing their attire, unfortunately not all employees, to put it bluntly, have sufficient dress sense to be left with this decision!

Another key advantage with this alleged loss of a personal fashion statement is of course the upside in not having to decide, “What will I wear today?”

Corporate apparel also takes financial pressure off the employee, who often has to spend a lot of their own money and time to avoid being seen in the same clothes over a period of time, he benefits of corporate apparel might company and the staff who represent it. not to mention the issue of the continual not at first be apparent and might, in fact, race to have ‘this year’s’ or the latest fashion Tbring back memories of your old school Additionally, in a busy showroom accessory. days where the school uniform turned the environment, they will be easily recognised by individual student into a faceless entity. customers as ‘your people’, avoiding awkward Additionally, despite sounding a bit odd, a situations where a customer approaches a man branded uniform actually creates a sense of However, the truth is a corporate uniform or in a suit, only to find that they too are looking unity. When people are ‘branded’, they tend branded clothing do have a number of key for assistance! to behave differently, knowing full well that benefits for the business, the wearer and the their behaviour is on show and will reflect in a customers. While the standard dark suit or female positive or a negative way on their employer. equivalent seems to be the standard for the From the business perspective, your staff will sales team, a smartly-designed branded Finally and possibly the most important aspect effectively become a walking endorsement corporate uniform in an equivalent style could of looking the part, is customer perception. for your brand. Whether in the showroom, at provide an attractive alternative. lunch or during appointments, your branded Just as we need to keep the Dealer showroom staff are a sign of your confidence in the From an employee point of view, there are spotless and with clean windows and floors, some definite advantages. Advantages, that

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the customer also wants to see professional are vast, with options available from smart ‘reserved yet fashionable’. looking people occupying the space! suits to more casual blouses and slacks. Theway your employees are presented is And of course the styles available for corporate Thechoice, is up to you, but remember just part of the greater marketing strategy apparel have come a long way from the eighties whatever you choose needs to reflect what and needs to reflect the same core values where the men looked like undertakers and you want to say about your brand, be it and standards as all your other marketing the ladies like air hostesses! Today the options ‘professional yet approachable’ or perhaps collateral.

To take advantage of the opportunities and manage the challenges it’s critical to choose an adviser that understands your industry – both locally and globally. KPMG has been working with dealerships like yours for 100 years. We combine our extensive industry knowledge and insights gained to help our clients address their The automotive most pressing issues and achieve their goals. To understand more about how KPMG can assist your industry is dynamic dealership, contact Aaron Street, Sector Leader, Automotive and changing on 07 3233 3138 or [email protected]. kpmg.com.au

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