XX XXXXXXXXXX, GM ABCDEF AUTO address City, state, zip Dear XX, Since working with you and your staff over the last couple months, we ve discovered numerous strengths in your organization as well as a number of critical barriers to success. These qualities and obstacles are even more significant given the goal to grow the business at a rate significantly above even its fantastic historical pace and become the #1 AUTO Dealership in the world. In addition, you want to maintain a culture that is deemed valuable and productive by both your superiors and your subordinates. You ve retained Breakthrough Consulting International (BCI) to use our skills, contacts, resources, and services in a full- out effort to help leverage your ability to become more successful and grow your ABCDEF AUTO (AA) at a faster rate and achieve the position of #1 in the world. It is our goal to maximize your current assets and create better processes, which will better position you for higher revenue and profit and support you in situations where you could leap faster and farther. Immediately after we left AA, we began developing and prioritizing an integration process and action plan. There are many immediate opportunities within the company; obviously we won t be able to do everything at once. Therefore, in collaboration with AA we will agree on the specific steps, prioritize them, and fully communicate the final project plan and approximately when and how each step will be executed. Please note, your Master Value Proposition is included. We re ready to get started while 2014 is still young. We look forward to working alongside you and your team in helping AA achieve the position of No. 1 in the world. Sincerely, Jim Fleck Breakthrough Consulting International
BCI Consulting Proposal BCI will provide business optimization consulting services to AA, including objective- driven business development services and training, based on the initial assessment and diagnosis developed during our recent visit. Our focus will be to condition every AA executive and employee as STRATEGISTS, focused on working ON the business. BCI s services may include but are not limited to: business development process creation, sales presentation development, training in basic and advanced sales skills, specific marketing and sales training based on AA s current and future solutions, Internet strategy (website, social media, SEO, and online lead generation), referral strategies, hiring the right people, development of ideal compensation/commission plans, goal setting for high achievers, follow- up and implementation of enhanced skills, client reactivation and most importantly the facilitation of planning, procedures and policies. In addition, we will provide AA ideas, insights, and proven best- practice methods to facilitate the execution of its business development plan throughout the organization, both ideas that can be executed short term, and those that might take a little more time and development but still could be game changers for AA. Strategic Outcomes and Objectives All milestones and deliverables listed herein are components of the following key areas of focus for this engagement: 1. Process Design and Detail 2. Training and Skills Strengthening 3. Tracking and Accountability 4. Hiring the Right Business Development Talent 5. Playbooks 6. Marketing Campaigns 7. Management Support 8. Profitability 2
Example Success Indicators We will agree to a set of success indicators, based on the training and support provided by BCI. The indicators below will give you examples of success indicators we will agree upon ahead of time that will show progress is being made in the right direction: Managers and Sales Reps could show: Working understanding from at least 80% of active reps of sales techniques, strategies, and training (mastery is the ultimate goal and requires extensive practice) Increase in active prospecting activity, outbound calls, and productive sales activity Enhanced performance in moving pipeline accounts from one stage to the next Enhanced performance in productivity of cold calls and prospecting activity Enhanced ability to speak to educational campaigns (Core story), marketing material, and calls to action Improved understanding and implementation of strategic level conversations that replace price and service conversations in prospecting and business development Improved ability to track the sales process, identify their own problems or challenges, and improve the effectiveness of their sales efforts Understanding of target filtering processes and identification of best buyers Managers Only: Improved ability to track their teams' sales process, identify potential problems or challenges, and improve the effectiveness of their teams' sales efforts Marketing and Other Involved Personnel could show: Working knowledge of how to deploy an integrated sales and marketing campaign that involves team training, sales processes, and marketing collateral Working knowledge of how to utilize core story in the development and deployment of marketing collateral using best practices from multiple sources Improved efficiency and effectiveness in deploying core story based campaigns Understanding of the processes and procedures necessary to deploy integrated education- based marketing and sales campaigns using consistent communication strategies Understanding of target filtering processes and identification of best buyers 3
Project Options Option 1: Planning, Procedures and Policies Project Kick- off Meeting o Strategic Planning Session with Key Team Leaders o Setting Expectations and Approval Process Agreement Documenting all current processes o Shadow key staff o Review process meetings with key staff o Edit processes based on findings and review meetings o Illustrating them (process maps) o Review and edit session for process maps Planning for Growth o Recommend Strategic changes to current processes (to reduce 5- hour experience, etc) o Review and edit Strategic changes with management team o Edit current processes with Strategic changes o Development of Core Metrics, Reporting, Stack Ranking System and Organizing Principles o Develop position description for the ideal sales management executive Optional: Conduct campaign to hire the optimal sales management resource Procedures and Policies o Sales Process Development for Playbook o Create NEW ABCDEF AUTO Policy Manual o Create NEW ABCDEF AUTO Sales Training Manual o Rollout of findings and manuals to management and staff Option 2: Implementation, Training and Marketing All of option 1 plus Scripts (including but not limited to) o Inbound: New, Used, How Many Miles, Inventory Questions, Specials, etc) o Objections: Best Price, Payments, Bad Credit, Won t Give Personal Info, etc) o Outbound: Follow up, Internet Leads, Service, etc) o Special Finance Scripts o Education Based marketing Scripts o Service Advisor Scripts o Finance Scripts Sales, Service and Financing Training Meetings Management Training Meetings Advanced MVP Integration o Messaging o Brochures o Sales Pamphlets o Flyers/Cut Sheets o External Educational Material Internal training videos for Sales, Service, etc. 4
Social Media Plan (Facebook, Twitter, YouTube, and explore others) Lead Capture System (Internet, Showroom, Inbound Calls, Social Media and other web properties) KPI Metrics Development Management around Core Metrics, Weekly Reporting, Stack Ranking System and Organizing Principles Oversight and Guidance for improvement of Dealersocket usage DM100 Playbook Draft (Identifying and prospecting for a Best Buyer Campaign) o DM100 Strategic Outcomes and Buying Criteria Determined o DM100 Campaign Metrics, Tracking, and KPI Plan o DM100 Logistics Planning Live 60- minute Mastery- Level Sales Strengthening Training Sessions, conducted by Jim and/or Gordon (sessions to be recorded for study purposes) Individual 60- minute Executive Management Call Minimum Monthly Executive Strategy Update Session with Executives (AA) Creation and build out of Case Study Testimonials Implement Strategic Objectives to reduce the 5 Hour Experience Initial Strategic Planning for the following New Technology Implementation ipad/tablet Usage AUTO Strategic Version to compete with TrueCar.com, Edmunds.com, Cars.com, etc. Option 3: Technology Implementation and Creating The Future of Car Buying All of options 1 & 2 Plus o Launch ABCDEF AUTO University (current location or new web property) o Mobile Website Enhancements and Integration with o Mobile App Enhancements and/or creation o ABCDEFBrokers.com 5
Terms and Conditions You get to say no, it s your company: You are the leaders of your company and the decision to do anything or NOT do something is always your decision. We will be making many recommendations during the course of our relationship and, ultimately, you have the final say on what we take action on vs. not taking action on. This agreement assumes that you know your business better than we will ever know it. You are ultimately responsible for the business. We (BCI) do not in any way share liability. You agree to indemnify us and hold us harmless for any litigation brought about because of your actions. Unless, of course we have committed a tort, and it is proven in court that we are fraudulent in some way on your behalf. Under such circumstance, we would of course reimburse all legal costs, expenses, etc. Neither situation has ever happened in any relationship that we ve been in, but nevertheless, you do have to agree to protect us, thus YOU need to always be the final decision maker in any activity, and YOU must be responsible for whatever laws govern your particular market/industry/business. Term of Agreement: This agreement will become effective as of the date you sign this letter. It will end automatically when we have completed our assignments according to this agreement. Confidentiality: We agree to keep any confidential information you provide us about your business strictly confidential. We have required or shall require the individuals who provide the Services on our behalf to sign written agreements to keep any confidential information about your business that they receive strictly confidential. If we provide you with any information we designate as confidential, you agree to treat it as such. Beyond what would be constituted as public knowledge or information, we will keep all information about you completely confidential, unless given permission otherwise. Cooperation: You and we agree to cooperate with each other to facilitate our providing the Services. In particular, you and we each agree to provide the other with at least two full business days notice of any cancellation of any scheduled meetings. Nature of Relationship: Our relationship with you will be an independent contractor relationship only. Neither we nor any of our individual personnel will be considered your agent, partner, employee or joint venture partner. Miscellaneous. a. Dispute resolution. Any dispute arising out of our relationship with you, the Services or this agreement shall first be submitted to good faith mediation in Los Angeles County or elsewhere if mutually agreed, and the mediator s fee shall be shared equally. If mediation does not resolve the dispute, any lawsuit may be filed only in a court located in Cook County, Illinois and Illinois law shall apply. b. Limitation of liability. Your business is your own and we assume you know it better than we ever will. Therefore, the final decision whether to go forward with any activity we may recommend or use any materials we may provide will be yours alone. We provide no guarantee or warranty of any kind, express or implied, with respect to the Services, our personnel or the results or consequences of going 6
forward with any activity we may recommend or any materials we may provide. Under no circumstances shall we have any liability or responsibility for any consequential, special or indirect damages. Under no circumstances shall we have any liability or responsibility arising out of or relating to this agreement in any amount exceeding the total amount you pay us for the Services. c. Indemnification. You agree to defend and indemnify us from any claims threatened or asserted as a direct or indirect result of any action or inaction of yours, whether or not your action or inaction was based on or related to the Services or any recommendations or materials we provided. d. Entire agreement. This letter agreement is our entire agreement with you. It supersedes any other agreements, representations, promises or understandings made by you or us. Timing: Option 1 is estimated to take 90 days. Option 2 is estimated to take 6 months and Option 3 is a custom quote. Payment: We assess a single project fee for our work, so there is never a meter running and you can control expenses better. Within the objectives and parameters described above, we will commit as much time as necessary to fulfill the final objectives and meet time frames laid out in our final project plan. You and we may request additional time to be spent on aspects of this project without any additional fees or charges except for travel expenses. Our fees for the options above are: Option 1: Planning, Policies and Procedures: $69,000(minus $23,998.50 credit) = $45,000.00 Option 2: Implementation: $213,771 (minus $23,998.50 credit) = $189,773.00 Option 3: Price: Custom Quote based on selections Payment Terms: For Option 1 50% will be invoiced upon execution and 50% 45 days later. For Option 2 50% will be invoiced upon execution, 25% will be invoiced 45 days after commencement and 25% will be invoiced 90 days after commencement. We offer a 10% discount on Option 2 for 100% up- front payment. Once payments are made they are non- refundable. Any future payments along with the project may be cancelled with 30 days notice. 7
COMPENSATION TO BE PAID TO: BREAKTHROUGH CONSULTING INTERNATIONAL Please Select One Our Agreement: q Option 1 q Option 2 q Option 3. Travel Expenses: You agree to prepay, or reimburse within 15 days over and above the other fees specified, our actual and reasonable travel expenses, including Business Class airfare for the Consultants, accommodations, town car ground transportation, meals (up to $50 per day/per consultant) and any other reasonable expenses. Miscellaneous Expenses: You agree to reimburse us within 15 days of receiving an invoice for all other reasonable expenses we incur in providing the Services to you, including but not limited to postage, Fed- ex, etc. We do not anticipate many such additional expenses. Payment Method: Funds can also be wired using the wiring information below: Name of bank: Bank address: Bank routing number: Account Number: Name on account: Chase Bank 575 Randall Rd. St. Charles, IL 60174 #071000013 XXXXXXXXXXXX Breakthrough Consulting International, LLC We are excited about the possibilities for this relationship, and we are very much looking forward to working with you. Sincerely, Jim Fleck President - BCI Agreed By CLIENT: Signature of Client: Name: Title: XX XXXXXXXXXX, ABCDEF AUTO General Manager Date: 8