"Outcome is Income!" – Process, Accountability & The One Change Adding Millions in Profit Yearly | John Hiester, Dealer Principal at John Hiester Automotive Group
About this episode
John Hiester, dealer principal at John Hiester Automotive Group, shares how disciplined processes, video accountability, and AI coaching have transformed his dealerships, boosting profits by millions annually. He discusses leveraging video recordings of finance transactions to enforce process adherence, resulting in a $600 increase per deal. John also explores the integration of AI for video analysis and customer interaction improvements, as well as his unique marketing slogan and talent strategies. The conversation highlights the importance of intentional decision-making and adapting to new technologies in a complex, evolving automotive retail environment.
Stellantis
"Recent dealer-only conversations include Stellantis acquisition caps, AI selection and integration..."
Stellantis is a big company that makes many car brands you might know, like Jeep and Dodge. It was created when two big car companies joined together.
Stellantis is a multinational automotive manufacturing corporation formed from the merger of Fiat Chrysler Automobiles and PSA Group, owning brands like Jeep, Dodge, Ram, Peugeot, and others.
FNI transactions
"And it changed to the tune of $600 per deal, our FNI transactions, just by videotaping it."
FNI means the part of a car dealership where they help you get a loan or insurance for your car.
FNI stands for Finance and Insurance, referring to the department in a car dealership that handles financing deals, insurance products, and related paperwork.
AI coaching
"John breaks down how disciplined processes, video accountability, and AI coaching are reshaping how his stores operate..."
AI coaching means using smart computer programs to help people get better at their jobs by giving advice and tips.
AI coaching refers to using artificial intelligence tools to analyze and improve sales or operational processes, often by providing feedback and training recommendations.
NADA
"So what we're doing, which we picked it up at NADA,"
NADA is a group that helps car dealers with advice and rules about selling cars.
NADA refers to the National Automobile Dealers Association, a trade organization representing car dealerships in the U.S., providing resources, education, and industry standards.
parts distributorship
"He said, you should turn that into a parts distributorship and let me run it."
A parts distributorship is a company that buys car parts in bulk and sells them to places that fix cars or sell parts to people.
A parts distributorship is a business that stocks and supplies automotive parts to repair shops, dealers, or retailers, acting as an intermediary between manufacturers and end users.
AC Delco
"He said, if you could get AC Delco, do it."
AC Delco makes car parts like batteries and filters that are trusted by many car makers, especially General Motors.
AC Delco is an American automotive parts brand owned by General Motors, known for producing high-quality original equipment and aftermarket parts for GM vehicles and others.
General Motors
"So I called General Motors and I said, hey, you know, I got this warehouse."
General Motors is a big company that makes cars and trucks under different brand names like Chevrolet and Cadillac.
General Motors (GM) is a major American automotive manufacturer that owns brands like Chevrolet, GMC, Cadillac, and Buick.
dealership
"We don't do dealers, right? They said, you know, cause dealers end up just buying parts cheaper for themselves and don't really push the business."
A dealership is a place where you can buy cars and get them fixed or serviced.
A dealership is a business authorized to sell and service vehicles from a particular manufacturer, often including parts and repair services.
pilot program
"They said, hey, we've convinced General Motors to do this pilot program and we're going to, in the four, four areas around the country where we're not performing well, we're going to, we're going to pilot some, some distribution business."
A pilot program is like a test run to see if a new idea or plan works well before doing it everywhere.
A pilot program is a small-scale, preliminary study conducted to evaluate feasibility, time, cost, risk, and improve upon the design before full-scale implementation.
Jeep Brand
"...I've got two Chevy stores and two Chrysler Dodge Jeep brand stores, Stalantis stores."
The Jeep Grand Cherokee is a popular SUV that can drive well both on rough roads and in the city. It's comfortable inside and is made by the same company that owns Dodge and Chrysler. People talk about it because it's one of the main Jeep vehicles you can buy.
The Jeep Grand Cherokee is a midsize SUV known for its blend of off-road capability and luxury features. It has been a significant model for Jeep, appealing to buyers who want ruggedness combined with comfort. The mention in the context of Chrysler Dodge Jeep stores highlights its importance within the Stellantis brand lineup.
Carvana
"It does seem like some Carvana-esque, you know, type of limiter that said, if Carvana then in some way works with dealers,"
Carvana is a company that sells used cars online and delivers them to your home, instead of buying from a regular car dealer.
Carvana is an online used car retailer known for its car vending machines and direct-to-consumer sales model, disrupting traditional dealership sales.
BDC
"...then I know that somewhere in the process and my BDCs broke down, they're not following the scripts."
BDC is a team in car dealerships that talks to customers who call or contact the dealer. They help set up appointments to see or buy cars.
BDC stands for Business Development Center, a department in car dealerships responsible for managing incoming leads, customer communication, and appointment setting to improve sales efficiency.
Open Lane
"This episode is brought to you by Open Lane. Once again, voted the most preferred digital wholesale marketplace by dealers. And they've been busy using the power of people in AI to build a transparent wholesale experience. Open Lane Intelligence guides their condition reports feature AI powered and inspector confirmed exterior damage detection, high quality engine audio recordings and OBD two codes decoded into plain English. Open Lane predictive pricing provides historical and future pricing guidance, allowing you to buy confidently. If you've never used Open Lane before or it's been a while since you have, you're eligible to earn up to $2,500 in buy or sale fee credits. Learn more at openlane.com slash CDG or click the link in the show notes below does."
Open Lane is an online place where car dealers buy and sell cars. They use smart computer programs to check car conditions and help dealers know the right price.
Open Lane is a digital wholesale marketplace for vehicle dealers that uses AI and human expertise to provide transparent vehicle condition reports, pricing guidance, and other services to facilitate buying and selling cars.
transparent wholesale experience
"And they've been busy using the power of people in AI to build a transparent wholesale experience."
It means being open and honest about the car's condition and price when dealers buy and sell cars, so everyone knows what they're getting.
A transparent wholesale experience means providing clear, honest, and accessible information about vehicle condition and pricing to buyers and sellers in the wholesale car market.
AI powered exterior damage detection
"Open Lane Intelligence guides their condition reports feature AI powered and inspector confirmed exterior damage detection, high quality engine audio recordings and OBD two codes decoded into plain English."
It's a smart computer system that looks at pictures of a car and finds any dents or scratches on the outside so people know about the damage.
This refers to the use of artificial intelligence technology to analyze vehicle images and identify any exterior damage automatically, improving accuracy and speed in condition reporting.
engine audio recordings
"Open Lane Intelligence guides their condition reports feature AI powered and inspector confirmed exterior damage detection, high quality engine audio recordings and OBD two codes decoded into plain English."
It's a recording of the car's engine sound so people can listen and check if the engine sounds healthy or if there might be problems.
These are high-quality sound recordings of a vehicle's engine running, used to assess engine health and detect potential mechanical issues remotely.
OBD two codes
"Open Lane Intelligence guides their condition reports feature AI powered and inspector confirmed exterior damage detection, high quality engine audio recordings and OBD two codes decoded into plain English."
Cars have a computer that checks if something is wrong. It gives special codes called OBD two codes that tell mechanics what needs fixing.
OBD-II (On-Board Diagnostics, second generation) codes are standardized diagnostic trouble codes generated by a vehicle's computer to indicate malfunctions or issues in various systems.
predictive pricing
"Open Lane predictive pricing provides historical and future pricing guidance, allowing you to buy confidently."
It's a way to guess how much a car will cost in the future based on past prices, so people can decide the best time to buy or sell.
Predictive pricing uses historical and current data to forecast future vehicle prices, helping buyers and sellers make informed decisions about when to buy or sell.
closing percentage
"We know what the closing percentage is, right? So we could take and back into it and save money"
Closing percentage means how often a salesperson convinces someone to buy a car after talking to them.
Closing percentage is the rate at which salespeople successfully convert presentations or leads into actual sales.
F and I manager
"So you trained to be an F and I manager, didn't guarantee a position,"
An F and I manager is the person at a car dealership who helps buyers get loans and insurance for their new cars.
F and I manager stands for Finance and Insurance manager, a dealership role responsible for arranging financing, selling insurance products, and completing paperwork for car buyers.
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