Hometown Auto Retailers Announces Strategic 52 Week Sales Training Program
26 May 2000
Hometown Auto Retailers Announces Strategic 52 Week Sales Training Program
WATERTOWN, Conn.--May 25, 2000--Hometown Auto Retailers, Inc. (NASDAQ NM: HCAR) today announced the commencement of a new sales training program for year 2000. All Hometown Officers, General Managers, Sales Managers, and Salespeople have enrolled and started sales training under the Joe Verde (TM) sales training method. Joe Verde (TM) is the recognized industry leader for professional sales training nationwide, has spoken at many national NADA conventions and has recognized significant business growth, due to the success dealerships have experienced as a result of these training methods.President and Chief Operating Officer Corey Shaker commented, "The Joe Verde (TM) training focuses our sales force on three critical sales areas: the sales process, customer follow up and customer prospecting. Traditionally, dealerships accept sales closing ratios in the 20% range, generated chiefly from walk-in customers. The Hometown sales force doesn't rely on walk-in trade as its primary source of revenues as do most dealerships. The sales training we provide is geared toward the sales process to improve gross margins, timely follow up to improve closing ratios and on generating prospects to improve sales volume. Most importantly, our training provides sales people with the necessary skills to pro-actively market our product lines."
An important statistic shows that 70%-80% of all customers usually complete a purchase within 48-96 hours of an initial visit to a dealership. Despite this volume, individual dealerships capture only 20% of those customers. This result is from a lack of training in the sales follow-up process. There are also hundreds and thousands of existing customers within the dealership franchise area, which are never contacted by dealerships resulting in lost sales potential. Corey went on to say, "Hometown is different in that we train our salespeople to maximize their sales efforts through effective follow up and prospecting. While most dealerships allow their sales force to operate at a 30% productivity level, our sales group is accountable for 100% productivity. This means that our sales group must be proactive in sales prospecting." Corey added, "Another significant statistic in the industry shows sales person turnover at greater than 100%. Hometown enjoys a stable sales force that contributes to customer loyalty and repeat business. Retaining a good sales force is essential to having an effectively trained sales force."
Dealerships continually fail to maximize the potential of their sales force when they fail to commit to the investment and time necessary to develop a skilled sales force. Without this training, dealerships severely hamper their profitability and potential return. This is reinforced in that the typical process for hiring a sales person at most dealerships entails a quick unfocused interview, self-directed product training, a tour of the facility after which the new sales person is pushed in front of customers without any training. This does not provide the sales person with the necessary skills in either sales process, follow up or prospecting.
Corey added, "We recognize the opportunity to increase market share and to reach a greater segment of the buying public. This can only be accomplished through our focused and ongoing sales training program. Hometown is very committed to this program. Hometown stockholders will greatly benefit from the business success we generate from this initial 52 week sales training program."
Corey added, "There is little doubt that the impact of this initiative will have a positive effect on margins and on sales volume. It will also produce the type of professional workforce we want people to recognize as representatives of Hometown Auto Retailers."
Hometown Auto Retailers sells new and used cars and light trucks, provides maintenance and repair services, sells replacement parts and provides related financing, insurance and service contracts through 11 franchised dealerships located in New Jersey, New York, Connecticut, Massachusetts and Vermont. The Company's dealerships offer 13 American and Asian automotive brands, including Chevrolet, Chrysler, Daewoo, Dodge, Ford, Isuzu, Jeep, Lincoln, Mazda, Mercury, Oldsmobile, Plymouth and Toyota. The Company is active in two "niche" segments of the automotive market: the sale of Lincoln Town Cars and limousines to livery car and livery fleet operators and the maintenance and repair of cars and trucks at a Ford and Lincoln Mercury factory authorized free-standing service center.
This release contains "forward-looking statements" based on current expectations but involving known and unknown risks and uncertainties. Actual results or achievements may be materially different from those expressed or implied. The Company's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, its ability to consummate, and the timing of, acquisitions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Therefore, there can be no assurance than any forward-looking statement will prove to be accurate.