auto dealer in black and red logo
MenuMENU
SearchSEARCH

Keys To Successful Internet Retailing

Greg Goebel - I would contact the lead, sell the value, close the deal, arrange financing and even delivery...

Greg Goebel
Greg GoebelPresident/Trainer
Read Greg's Posts
September 1, 2006
4 min to read


It would be easier to read “War and Peace” in 90 minutes than it would to pare down a 90-minute conversation with Tom Vann on his success in Internet retailing, for this space here. To put things into perspective, in 1996 he and his brother were retailing 55 to 60 retail units (combined new and used) in the small community of Hillsdale, Mich., which isn’t too far north of the Indiana-Ohio border. Vann didn’t like being known as a "car guy" because he didn’t like the selling model or process. With that, he set his mind to growing the dealership to the No. 1 full-line Chrysler dealer in Michigan by 2003, and he appears well on the way. He and his brother now own three franchises and are retailing out of Team Hillsdale 55 to 60 units per month...on the Internet.

Vann is recognized nationally as one of the pre-eminent retailers of vehicles on the Internet, has spoke to many groups and conferences as well as being a partner in I-Net Training Technologies (www.AutoClosers.com). There is no way this space can begin to do justice to his expertise.

Ad Loading...

Q. - How long ago did your first store get into Internet marketing and why?

A. - A little over two years ago, primarily because I don't like the traditional selling model. I was reading Inc. magazine and recognized Pete Ellis (Autobytel - CEO) in an article. I called after being assigned a small territory in Michigan and received 28 leads in the first month. We sold 21 of them. After sharing the success with Autobytel, they gave me a bigger territory, and the rest is history.

Q. - What is your average monthly volume per store?

A. - We are averaging in the 50s in Hillsdale. A really lousy month is 35 to 39. A good month is 60.

Q. - What is your mix of new to used sales?

Ad Loading...

A. - We run about 80 percent to 85 percent new vehicles.

Q. - How many leads per month per store?

A. - An average month is around 250, but we have seen as high as 400 when a lead generator is really advertising heavy.

Q. - Did you get into the same way as most dealers - one person in charge?

A. - For a long time I was really doing it all. I would contact the lead, sell the value, close the deal, arrange financing and even delivery. Once is started to grow, I had to bring on more people.

Ad Loading...

Q. - How many people do you have involved now?

A. - We have 10 in the department and need more. I have six full time sales professionals, two support people for dealer trades and administrative efforts, one online finance director and a person handling deliveries. I need more people, but geography is the biggest inhibitor.

Q. - What is the source of your leads - Your Web site or third party?

A. - We use third party lead generators. We have been with Autobytel.com from the very beginning, and we have tried every other service there is. We also use AutoVantage.com. Our Web site is currently down, undergoing revamping, but I am convinced the best use of a dealer\'s own site is retaining your current customers and developing them for long term.

Q. - In your opinion, what are the keys to success?

Ad Loading...

A. - Very much the same that you view special finance - the commitment to a long-term plan of innovation and marketing, the right people and then cost containment. People and training them is key. We spend three to six weeks training an Internet sales person before we ever let them touch the phone. They have to be a financial expert, product wizard and understand the Internet. It should go without saying that you also must be able to effectively collect information and manage your database, and be able to communicate with them electronically.

Q. - In your opinion, what are the most common mistakes made?

A. - Probably the biggest, is non-support. A dealer throws the task to someone in the store, sends him or her to school, and turns them loose. They inevitably start out like a house afire, then 90 days later, the lot attendants won't even help them. Their sales drop to three or four in a month, and suddenly, they are gone. Then you are back at zero.

Q. - Any closing thoughts?

A. - Well, the nice thing about this subject is the possibilities are endless. You are truly only limited by your imagination and your commitment. Also, the selling model is important. I believe the Internet salesperson has to be more skilled than those in "bricks and mortar." I have developed the selling process that I teach and use religiously. We aren’t closing 70 percent anymore, but we expect to close 35 percent to 40 percent of the leads.

Ad Loading...

Also, people might expect us to give our cars away. Not so. Our Internet department front-end gross profit generally outpaces the bricks-and-mortar side. F&I is stronger with bricks-and-mortar, but often the Internet customer has already done their shopping for financing by the time our online finance director speaks with them.

Finally, remember that the Internet buyer is generally smarter, shrewder and more educated than the average customer that comes walking on to your lot.

Topics:BDCDigital
Subscribe to Our Newsletter

More Digital

Scott Worthington, vice president of product management at Reynolds and Reynolds, stands indoors in front of large windows wearing a navy blazer and white shirt.
Digitalby StaffMarch 3, 2026

Reynolds, Corpay Partner to Enhance Dealership Payables

The new connection between the companies is designed to help digitize payments, targeting smoother transactions for automotive dealers.

Read More →
Headshot of Zach Shefska, CEO of CarEdge, alongside the CarEdge logo on a blue background.
Digitalby StaffFebruary 24, 2026

Free Public Scoring System Rewards Honest Dealer Prices

CarEdge Dealer Transparency Index is based on verified quotes, and retailers can be rewarded with badges and other marketable proofs of honest pricing.

Read More →
Graphic promoting StoneEagle at the 2026 NADA Show in Las Vegas, featuring a photo of CEO Cindy Allen.
Product & Technologyby StaffJanuary 20, 2026

StoneEagle to Unveil Next-Gen F&I Solutions at NADA

Empowering the F&I office through data is central to the company’s reimagined solutions it's scheduled to debut soon.

Read More →
Ad Loading...
Digitalby Hannah MitchellJanuary 9, 2026

Automaker Websites Valuable Tools

The majority of shoppers visit them, and most undecided consumers consider the brands whose sites they peruse, but some automakers emphasize brand over product detail.

Read More →
Product & Technologyby Hannah MitchellNovember 25, 2025

AI-Guided Car-Shopping Insight

Consumers say they’re using the tech, but many still end up at dealerships to seal the deal.

Read More →
A smartphone displaying a Hertz Car Sales online listing sits beside the Cox Automotive logo, illustrating Cox’s new omnichannel car-buying platform.
Digitalby StaffNovember 11, 2025

Omnichannel Car-Buying Platform Launches

Cox Automotive says the technology enables online transactions on client sites and third-party marketplaces simultaneously.

Read More →
Ad Loading...
Digitalby Hannah MitchellOctober 31, 2025

Audi Drivers Can Ditch That Pesky Manual

Updated mobile app features AI assistant for tech questions, EV tasks and more

Read More →
Digitalby Hannah MitchellOctober 24, 2025

GM Cars to Get Smarter Over Time

Automaker announces single vehicle computing system to connect lineup for faster updates

Read More →
Shawn Concannon, president of TSD Mobility Solutions, stands inside a modern office building, representing TSD’s continued growth in connected-fleet technology.
Digitalby StaffOctober 14, 2025

TSD Mobility Acquisition to Bolster Telematics

Latest addition expands connected-fleet technology, strengthening telematics capabilities and global reach

Read More →
Ad Loading...
Digitalby Hannah MitchellSeptember 5, 2025

Cyber Threats Continue Apace

Hackers, seeing auto retail vulnerabilities in 2024 CDK incident, are taking advantage, data show.

Read More →