Auto Sales Rate for August Projected to Reach 4.5-Year High

An influential auto forecasting firm said on Friday it expects August to yield the highest U.S. retail sales rate in four-and-a-half years. 

LMC Automotive projected the seasonally adjusted annual rate of sales to individual buyers at 12.3 million units. The overall SAAR, which includes fleet sales, is forecast to reach 14.5 million vehicles, on par with this year's high of 14.47 million in February.

"The strength in August light-vehicle sales takes some of the pressure off expectations for the balance of the year, but a high level of risk lingers," Jeff Schuster, senior vice president of forecasting at LMC Automotive, said in a statement. "We expect the current seesawing in auto sales to continue for the foreseeable future, but the overall picture in 2012 remains positive."

LMC and four other independent forecasters see August's selling pace falling within the range of the year's previous seven months.

TrueCar.com issued the lowest August projection, an overall SAAR of 13.9 million, the same as May. LMC's forecast of 14.5 million was the highest.

Through July, 8.4 million light vehicles were sold in the United States, up 14 percent from a year earlier. July sales rose 9 percent.

But citing consumer and business uncertainty from Europe, the November presidential election and the prospect of a Congressional deadlock, some analysts are lowering full-year forecasts. Both LMC and TrueCar.com earlier this month cut 200,000 units from full-year outlooks and are now at 14.3 million, and Morgan Stanley last month slashed its forecast to 14.4 million, 400,000 units lower.

In 2011, U.S. auto sales totaled 12.8 million.

Automakers will release their August totals on Sept. 4.

LMC is the auto forecasting partner of J.D. Power and Associates.

(Source: Automotive News, 08/24/12) 

Sales Tip: Your Attitude

The foundation of all successful people is their attitude. Attitude is the "advance man" of our true selves. Its roots are inward, based on past experiences, but its fruit is outward. It is our best friend, or our worst enemy. It is more honest and more consistent than our words. It is a thing, which draws people to us, or repels us. It is never content until it is expressed. It is the librarian of our past, the speaker of our present and the prophet of our future. Yet, your attitude is under whose control?

Your attitude is 100% under your control! There are a lot of things in life that we have no control over. For example, there is absolutely nothing we could do about how prospects react to us or our products and services. All we could do is control the way we react. Yet, so many salespeople let the prospect's reaction determine their outlook for the day. Think about it: Are you as positive, upbeat and driven on a day full of rejection as you would be on a highly successful day?

How do you react to negative prospects? Do you walk away discouraged and complain about it or do you take control, stay focused and go on to the next call? Success is based on good judgment and that is based on experience and the only way one can gain experience is through failure. Isn't a sale a numbers game? We have to fail often to succeed once. This is all about attitude.

How you react, how you think, what you say to yourself or what you believe about yourself is all under your control and comes out in your attitude. You must first realize that your attitude is 100% under your control and learn to reflect, confirm and take hold of your attitude. You must take hold of your attitude towards yourself, overcome fear and be able to deal with rejection in order to increase your productivity while saving time and money. What is your attitude towards your organization, its team players and products and services? Do you have an owner's mentality? If so, what would you do differently? Now, why are you not doing it? You have to address these issues and have a strong belief before you can move on.

What is your attitude towards the market that you represent? Do you have a clear, full-color picture of your ideal prospect? Do you know your competition and their strengths and weaknesses? If you don't, is it fair to say that you don't know what you are doing?

If you don't believe in:
(1) Yourself
(2) The organization that you represent, its team, products and services and
(3) The market that you are selling in; move on and find something you do believe in.

How could you convince anyone else to believe in something that you yourself don't believe in?

Where Charity Begins

Nonprofit Partnerships Prove Valuable to Retailers

Strategic business partners once meant the right vendors and suppliers, and they remain vitally important. But retailers are discovering the value of aligning with the right nonprofit partners as well. 

"Giving back is increasingly important," says Jessica Graham, vice president of communications and community relations for Belk, which announced earlier this year that the company and its associates, customers and vendors had given more than $18.3 million in charitable contributions in the fiscal year ended in January. 

"People want to know what companies are doing," she says. "They want to feel good about the companies they're doing business with. And associates...expect to have the opportunity to be involved and give back. It's becoming an increasingly normal part of business." 

Turnkey donation solutions 
This year, research from Indiana University and nonprofit Good360 showed that product donation -- as an alternative to liquidation or destruction -- not only reduces landfill waste and provides relief for those in need, it's also better for the corporate bottom line. 

Good360, ranked as one of the top 10 most efficient charities by Forbes magazine, provides items to more than 30,000 qualified nonprofits, schools and libraries. Over the past 29 years, Good360 has delivered more than $7 billion in donated products. 

Numerous NRF (National Retail Federation) member companies are on Good360's roster, but chief strategy officer and executive vice president for business development Ellie Hollander is always happy to include more. Her vision of an ideal future is one in which product donation is as routine as recycling. 

The Home Depot first aligned with Good360 in 2008 for a program called Framing Hope. Kelly Caffarelli, president of The Home Depot Foundation, says the idea stemmed from store associate comment cards. 

"Time and again, they saw us throwing away good merchandise, and they thought that people could use those products," Caffarelli says. "The products are often big, bulky and difficult to ship, so we put together a program that addressed those shipping issues by pairing a local nonprofit with each store." 

Framing Hope began with 25 stores and 25 nonprofits; since then, it has surpassed $100 million in donated merchandise, and about half of The Home Depot's U.S. stores have been matched -- with Good360's help, Caffarelli says. 

Changing the giving paradigm 
Steve Croth and his social innovation/technology peers had all experienced fundraising sales of chocolates and gift wrap that took "tons of effort," and thought there had to be an easier way to raise cash. Their solution, FlipGive, is set to officially launch this fall. 

FlipGive allows consumers to use social media to sell non-discounted offers from popular retailers. A mother trying to raise cash for her son's soccer team, for example, could sell e-gift cards to a participating retailer, with a portion of each sale going to her cause. 

It's a "no-risk" venture for the retailer, he explains, as taking part means increased customer traffic, cash, online promotion and credit for charitable involvement. 

"It flips marketing on its head," Croth says. "It uses the power of the people, and lets them be brand ambassadors. It's a new way to approach an old problem." Better the World, the company behind FlipGive (and of which Croth is a founding partner), works with each retailer to create a unique branded experience online, so customers see the fundraisers as an effort of the store. 

Better the World teamed up with Toronto-based Indigo Books & Music in 2011 during the retailer's annual Adopt a School campaign. As a result of that collaboration, online donations grew 140 percent and registrations for Adopt a School sites grew 1,200 percent. 

"This is about how you create deeper relationships with your customers," Croth says. "What we believe is a fundamental truth -- that if you help people within their lives, then they in turn will be more loyal to you." 

Learning to tell the story 
Belk's February charitable giving announcement was outside the norm -- not just because of the amount, but because an announcement was made at all. 

Traditionally, charitable giving came largely through the Belk Foundation, a separate entity with its own leadership and areas of focus. The company's 2010 rebranding came with new mission and value statements, though; being involved in the community was not new, but now receives higher priority. 

"You can't fix every need," Graham says. "The more you can focus your giving in areas that are particularly important to your community, your customers and your associates, the greater impact you'll be able to have." 

As part of Belk's efforts, more than $800,000 went to disaster relief for Tuscaloosa, Ala., and other communities affected by the April 2011 tornados. A Tuscaloosa store associate was killed as a result of the storms (though not in the store at the time) and the store also suffered extensive damage. 

To witness associates from across the company "give their money and reach out to help was amazing," Graham says. "We filled an 18-wheeler with supplies and drove it down so they would have basic supplies and clothes." 

Graham says Belk is "getting better" about sharing its charitable efforts, but there's still work to be done. 

"What's been so special is to see the associates so excited," she says. "This is the right thing to do, it's important to do and we have the resources to do it. We want to share the resources we have and make a difference. But a key part of that is sharing it in a way that helps galvanize folks who want to make a difference as well." 

(Source: Stores.Org, 08/12) 

Cable Operators Losing Video Subscribers

In the second quarter of 2012, the top nine cable companies lost 540,000 video consumers, a bit lower than the 600,000 video subscriber loss in the second quarter of 2011, according to Leichtman Research Group.

Looking at the 13 largest multichannel video providers in the U.S. -- cable, satellite, and telco operators -- the business lost 325,000 video consumers, 1,500 more than the total loss of video customers in the second quarter of 2011.

Leichtman says the top nine cable companies have 52.1 million subscribers, satellite TV companies have 34 million and telephone companies reporting 8.6 million.

The telephone companies had the best positive results during the period -- although slowing down from gains made years ago. They added 275,000 video subscribers, compared to 386,000 customers in the second quarter of 2011.

Satellite TV providers also took it on the chin, losing 62,000 subscribers. This compares to a loss of 109,000 in the second quarter of 2011. DirecTV had its first loss of subscribers -- 52,000 -- in the second quarter. 

Google Buys Newspaper Ad to Show Why Newspaper Ads Don’t Work

Here’s a nice bit of multi-faceted irony for you: On Thursday, Canada’s Globe and Mail newspaper ran a print ad for Google’s (directly competitive) search advertising business.

“You know who needs a haircut? People searching for a haircut,” the ad reads. “Maybe that’s why ads on Google work.”

Google’s ad ran in both the Globe‘s print and digital editions, as well as in the National Post, the Globe‘s main competitor.

Businesses That Cater to Doomsdayers

With Utah's inclination towards food storage, this article is more pertinent here in the Beehive State than most places. ~ Curt

Between ongoing global economic uncertainty, terrorism threats, hurricanes, earthquakes, and so-called Mayan apocalypse on Dec. 21, the end of the world is on some people's minds. 

That creates a business opportunity -- but the customers may not be quite who you'd imagine. 

"My customer base is not the militia type who are out in the woods practicing for the end of the world," says Vic Rantala, owner of Safecastle, which has been servicing the survival market for over 10 years. "Our customers are really a good cross section of the American population. We have people of all incomes and a lot of professions: Doctors. Lawyers. Business owners."

While the terms doomsdayers and survivalists are the most commonly used, the people who prepare for the worst tend to cringe when they're called that. Fanatics like Timothy McVeigh and Ted Kaczynski have poisoned those words in the general public's minds, they say. The preferred terminology these days is "preppers" or people who practice "crisis preparedness" -- and companies that cater to that crowd range from the serious to the silly.

"Preppers are no more crazy than those wacky people who have homeowners insurance," says Phil Burns, owner of the American Prepper's Network. "Seriously, why do people have homeowners insurance? It's so that if something catastrophic happens to your house you can get money to buy a new one -- and not be homeless. Prepping is basically the same thing -- we educate ourselves and purchase items that will be essential to continue our way of life in a catastrophic event."

Certainly, some gun shops court the prepper market. After all, should society collapse in some form or fashion, people will want to be able to defend themselves. But shoppers looking to gain a survival advantage if society goes to hell in a hand basket often focus on essential items.

Canned food from companies like Mountain House, which can last up to 30 years, is a popular item at many survival-themed businesses. So are water filters and things like generators and hand-cranked flashlights. (Rantala notes his best-selling item is Yoder's canned bacon -- 40-50 slices per can, though he can't figure out why, other than the food's popularity with Americans.)

Other preppers take things more seriously. Miami-based US Bunkers provides concrete and steel structures designed to protect inhabitants from tornadoes and hurricanes to an explosive attack. Fortified with concrete walls measuring from eight to 12 inches thick and weighing between 12 and 18 tons, they have bulletproof windows and marine quality doors. And rather than being set underground, like those in the 1950s, they rest on reinforced legs, which keep them about three feet above the earth.

Owner Jorge Villa spent seven years designing the bunkers after Hurricane Andrew hit South Florida in 1992.

Most preppers, in fact, have natural disasters in mind when they stockpile food or buy a shelter. The confusion that followed 9/11 made many people consider increasing their disaster preparedness. And the government's slow response to Hurricane Katrina in 2005 cemented some of those people as preppers.

That has meant boom times (pardon the pun) for businesses that specialize in survival.

"9/11 certainly changed the world and the way many people saw their future," says Rantala. "At that point, we saw many people seeing what their future might be seen as being different than what they'd been brought up believing it would be. Since 9/11, there have been events globally that have goosed our business. It's been solid growth all the way. Even through the economic downturn, crisis preparedness has been solidly growing."

Determining the overall business market for preppers is virtually impossible, given how widespread the community is -- and given the lack of a precise definition about which stores they frequent. (Several businesses, such as gun stores, cater to preppers and non-preppers alike.) But those who are serious about crisis preparation can spend a lot.

Storage food can run up to nearly $400 per case (with a 10-month supply costing nearly $8,000). And US Bunkers' products range from $12,000 to $65,000 each. (The company sells about 50 per year, according to Villa.) Other items, like body armor, can cost $800, while basics like a package of 20 water purification tablets run for less than $20.

While most companies take a very serious approach to the prepper community, others prefer to have fun with it. About a quarter-mile off of the Las Vegas strip, you'll find the Zombie Apocalypse Store, a business that claims to have everything it takes "to survive the zombie apocalypse."

The bulk of the customers, as you might expect, are curiosity seekers and tourists, who walk away with nothing more than a souvenir shot glass, coffee mug or t-shirt. Others might pick up a sword or knife or even an exploding target.

But about a quarter of the shoppers buy MRE meals, Israeli gas masks and battery-free flashlights -- just in case.

"It's people from California or anyplace where they're concerned something might happen," says store manager Larry Bohm. "They've lived through tornadoes or hurricanes. Some people are always looking for a slight edge in case something like that does happen, so (they buy) water filtering systems or smoke bombs...(or) a lot of different kinds of things they want to have in case something does happen to them."

Even some gun stores have fun using the undead to promote their wares. Moss Pawn Jewelry and Guns in Jonesboro, Ga., isn't exactly a prepper-centric store, but its owners are prepared for a zombie attack. In a YouTube video, they show off a heavily modified AR15 semi-automatic weapon that comes equipped with three sites (optimized for different ranges), four flashlights, and nine 30-round magazines.

"Maybe we went a little too far, but that's ok. It's all in fun," says an employee identified as Barry in the video.

(Source: CNBC.com, 08/03/12) 

Manufacturing Boom: Trade School Enrollment Soars

Trade schools nationwide are bursting at the seams as demand for skilled factory workers pushes enrollment to record highs. 

American manufacturers in certain sectors are enjoying a rebirth fueled by the return of overseas production back to the United States. As factories crank up, they have an urgent need for high-skilled workers such as machinists and tool-and-die makers knowledgeable in computers.

Trade school officials say manufacturing programs are experiencing an influx of students -- young people starting out, mid-career workers who are retraining after a layoff, and incumbent factory workers.

Workers are drawn not only by the opportunity but also the pay: Starting salaries of $50,000 to $60,000 are not out of range for high-skilled talent.

But the surge in enrollment is posing unique challenges for schools, many of which are running at or beyond full capacity for the first time in decades.

School administrators are clamoring to hire more instructors and secure funding to buy additional equipment and add classes.

These infrastructure limitations, and the fact that it can take a year or more to train high-skilled factory workers, mean that the current labor shortage could persist for several years.

Unlike 20 years ago, manufacturing today requires workers who are computer literate and skilled in computer-aided design and engineering, said Sandra Krebsbach, executive director of the American Technical Education Association.

Demand through the roof
The Dunwoody College of Technology, a private nonprofit school in Minneapolis, offers two-year programs in tool and die, computer-aided and robotics manufacturing. Dunwoody will have 120 students across its manufacturing programs this year.

"That's the highest level of enrollees we've had in 15 years," said E.J. Daigle, the school's director of robotics and manufacturing.

For the first time in the school's 99-year history, Dunwoody will this fall introduce a six-month certificate program designed to fast-track training. The program will allow the school to churn out an additional 40 graduates trained specifically in computer-aided manufacturing, said Daigle.

"Most of these fast-track students are older, in their 30s and 40s, who can't take two years off to go to school," he said, adding that these students have the option to return at any time and complete the two-year degree.

Demand for skilled workers has shot through the roof in his area, spurred largely by Minneapolis' robust medical devices industry led by Medtronic, said Daigle.

"We graduated 20 students in June and we had 400 inquiries about them from manufacturers," he said.

It's a similar story in parts of Wyoming, said Ami Erickson, dean of agriculture and technical careers at Northern Wyoming community college in Sheridan and Gillette.

Demand for skilled workers in Wyoming is coming primarily from mining and natural gas companies, she said. Both industries also have incumbent workers nearing retirement who will need to be replaced.

Starting salaries run as high as $80,000, and possibly more with overtime because of the worker shortage. Not surprisingly, the school's diesel and welding technology programs have large waiting lists, she said.

Erickson is on the hunt to add instructors in both schools but money is tight. "As a public school, we're funded by the state. Lately, we've had a pullback in funding," she said.

High-skilled workers are a hot commodity in Georgia as new manufacturers set up base, and existing ones expand operations, said Linda Barrow, vice president of academic affairs at Lanier Technical College, a two-year public school outside Atlanta.

"We expect enrollment in our programs will jump 8% to 15%, said Barrow. But accommodating more students is a challenge. "Our most hands-on classes have at most 20 students each, for adequate training and safety reasons," she said.

So the school's come up with a creative solution -- "virtual training." Barrow said the school recently purchased a "virtual welding trainer" that allows students to learn and practice skills on a screen.

"If a student takes too long on a conventional machine, they can go practice on the virtual trainer," she said. "This way, the whole class isn't held up and we can also train more students."

(Source: CNNMoney.com, 07/31/12) 

More Year-Old Cars Have Prices Almost the Same as New

A growing number of used cars are selling close to the same price as a new one, Kelley Blue Book reports.

The gap between new- and used-vehicle pricing in many segments has narrowed significantly. New vehicles are now selling, on average, for 11.5% more than a comparable 1-year-old used car, KBB says.

Used subcompact and compact cars only offer consumers an average savings between 5% and 7% percent. Used hybrid cars and midsize crossovers are within 3% to 4% of an equivalent new vehicle.

The shrinkage of the price gap defies what buyers usually expect, that they can save thousands by buying a rental car being booted from the fleet or other slightly used car. KBB's study calls into question whether it's worth buying slightly used, instead of new.

The difference varies by model. A new 2012 Toyota FJ Cruiser lists for $28,500, only $244 more than a used one. A new 2012 Ford Focus is $3,000 on average less than a 2011 version, but the 2012 was all-new and vastly improved.

The vehicle in which the used price is closest to new? That would be the 2011 Chevrolet Camaro, which has an average price of only $126 less than the cost of a new 2012 model. 

(Source: USA Today, 08/06/12) 

Sales Tip: Aggressive vs. Assertive Behavior

Prospects don't usually reward aggressive behavior. When salespeople become aggressive, their only goal is to share what is important to them -- closing the sale.

There is a big difference between aggressive and assertive behavior. When salespeople are assertive, they believe in the value of their products or services. Successful salespeople are self-assured and self-confident, but never allow their sales talk to overwhelm or push away prospects.

The Home Becomes a Piggy Bank Once Again

Home-Equity Loans Make A Comeback.

If a fancy new car appears in your neighbors' driveway and you wonder how in the world they can afford it, consult the consumption playbook circa 2006. 

Nearly seven percent of new-car buyers used a home-equity loan to finance the purchase during the first half of 2012, according to CNW Research of Bandon, Oregon. That's 52 percent higher than the rate in 2011, and the first meaningful jump in the use of home-equity loans for car purchases since banks pulled back on such lending starting in 2008. It's also further evidence that the housing market is stabilizing, and that housing may eventually help boost an economic recovery.

The widespread use of home-equity loans to fund car purchases, home renovations, college and vacations was a hallmark of the housing bubble. As home values skyrocketed and equity rose, many home owners basically considered home-equity loans to be found money, especially since they figured home values would rise indefinitely. That gusher of cash pushed sales of cars, appliances and other things to record levels in 2006 and 2007.

The housing bust ended that party, of course, and home-equity lending dried up as home values fell and equity evaporated. But now, home-equity lending is making a comeback, especially in areas where the housing market appears to have stabilized.

In six states -- California, Colorado, Florida, Illinois, New Jersey and Rhode Island -- more than 10 percent of buyers financed a new car with a home-equity loans this year, according to CNW's data. Such financing is still far below peak levels of 2007, but it may be high enough to keep car sales from falling, even as the overall economy weakens.

Any pickup in home-equity lending is a tangible sign that banks believe the housing bust is over. "The housing market has probably bottomed, which gives lenders a lot more confidence when extending home-equity credit," says Keith Leggett, senior economist at the American Bankers Association. "They're less likely to do that in markets where prices are still falling."

Buyers qualifying for such loans are most likely wealthier consumers with good credit who have owned their homes long enough to have equity that wasn't zeroed out by the housing bust, which slashed home values by about 33 percent, according to the S&P/Case-Shiller home-price index. Using a home-equity loan to finance a car or other purchase -- if you're lucky enough to qualify -- can be a shrewd move, because the interest on home-equity loans is usually deductible. There's no such deduction for ordinary car or consumer loans. So home-equity borrowing can cut the cost of a major purchase by thousands of dollars.

There are signs that consumers are starting to use home-equity loans for other types of spending as well. Harvard University's Joint Center for Housing Studies predicts that spending on home improvements will pick up by the end of 2012 and grow by double-digits in 2013. That forecast doesn't measure home-equity lending per se, but it does by proxy, since many homeowners use home-equity loans to remodel.

After prior recessions, the housing sector has been a key source of growth that helped drive a recovery. But this time, it's been a net drag on the economy, one reason the so-called recovery has been so weak. A pickup in home-equity borrowing won't be a cure-all, and it may never reach the heights it did during the housing bubble. But it may finally signal that the housing market is getting back to normal.

(Source: U.S. News & World Report, 07/30/12)