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Compliance: The Regulatory Gremlin

By R. Michael Burgholzer, President, Peak Performance Team

COMPLIANCE. The very word is anti- And that’s where managing consistent pricing system. It doesn’t need
thetical to the spirit of business. It smacks Compliance begins; with to be anything complicated. Most dealers
of regulation. Of government. Compliance go with a two percent interest rate mark-
is a yoke that chafes the neck of Com- the customer. The first rule up on all customers and a standard $XXX
merce, as an entity; and the neck of the of Compliance is to treat over cost on F&I products. If there’s ever
independent auto dealer as entrepreneur, everyone right. This alone a question as to pricing or the reasons be-
as innovator, as salesman, as financier, as hind it, you can produce the policy and
“horse-trader,” as Capitalist, as American. will eliminate most problems head off trouble before it starts.
Compliance is a gremlin in the machine before they develop.
of prosperity…but it is also the only game “What’s that?” you ask, “produce the pol-
in town. Since we’re stuck with regulation, icy?”
let’s at least acknowledge the benefits of Treat every customer with the respect and
Compliance. For one thing, Compliance dignity you’d expect from them if the roles Yes! You should keep a binder on hand, for
levels the playing field by preventing less were reversed, regardless of their gender, quick reference, containing written copies
forthright dealers from employing dishon- race, age, or other groups they may fit into. of your policies and procedures. The back
est business practices which would give For example, you should establish a consis- pages should consist of employee sign-off
them an unfair advantage in the market- tent policy regarding test drives and loan- sheets that vouch for the completion of
place. This not only guarantees that we’re ers and avoid deciding on a case-by-case training, on each policy (or section), by
all playing by the same rules, it also pro- basis as an individual customer waits. If each employee.
vides a guarantee to the customer. Since you treat everyone equally there’s no room
John Q. Public has the government’s re- for them to misinterpret your actions or But before you can kick-back and rest as-
assurance that he is protected from pred- intentions. But fair and equal treatment sured that you’ve tamed the Compliance
atory business practices, he feels MUCH isn’t relegated to matters of personal in- gremlin…you need to tame your dealer-
more secure in giving you the benefit of teraction. It’s critical that customers all ship.
the doubt when spending up to a year’s pay get the same offers, pricing, and deals—
on your product. regardless of their demographic—and it’s This starts with the vehicles on your lot.
hard to prove you practice this without a Make sure information appearing on win-

2 | MIADA MISSISSIPPI DEALER Q1 2020