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Carluminati

Hat Trick
Feb 17, 2015
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First Name
Chris
So I'm one of the guys in the digital car space looking beyond what various auto vendors offer in our industry , compared to what's out there in the open market - to find similar technology which could procure the same result - for costing purposes.

I'm coming to the conclusion more dealers should be looking everywhere for solutions. There are over 5,000 digital companies out there on the Martech 5000 and the list grows fast every day, however the focus of this thread to to show the huge delta in price comparing an auto vendor to the open market where it's possible to find comparable products.

Focus on this new acronym I created: TRUE VENDOR COST (TVC)

Without naming a company, I got a call today from a vendor who sells POP UNDER ADS. The price was $499.00 per month. That's really a $5,988 sale for a years worth, and would cost $29,940 over 5 years.

The TVC for this AUTO VENDOR service is actually $5,988.00
(We all operate an annual accounting schedule, not month to month - right!).

So what we want to know is what the true cost so we can make a smart decision. Dollars are harder to earn, we'd prefer to spend as little as possible to achieve our goals. Let's look at our options because that is the right thing to do.

Taking a quick second to search for alternatives, I found many excellent companies with stellar success in this area, and one such company offers at the high end, a plan for $29.00 per month. That's really a $348.00 sale for a years worth, and would cost $1,740.00 over 5 years.

The TVC for this OPEN MARKET service is actually $348.00

The delta is $28,200 more if we select the Auto Vendor compared to Open Market vendor. I cannot see any justification to spend more than I would have too. So as we make head way into finding help making our websites and leads perform better, let's keep in mind we have multiple vendors, and some who provide CASUAL TECHNOLOGY, like Pop Under Uds - just get the OPEN MARKET options, they literally do the same thing for less dollars.

What is your take on this?
 
Two things: Some of the larger SaaS that offer these things (ex: HubSpot) are huge on scale and short on support. Your typical widgets (Click to call, Price unlock, etc.) tend to not require much support anyways.

I think building and selling widgets for this industry is very lucrative with the right sales team behind it. As far as websites go, I think the prices have become slightly more competitive and you're mostly paying for support. And from what I've heard the support is lousy in some areas. IMO there's too many vendors in this industry in bed with each other...
 
What is your take on this?

Regardless of what one might think of pop unders, your way of finding the least cost approach is sound on the surface. As Chris is pointing out, simple "widgets" like pop unders can be looked at as "what's the least expensive" and not necessarily something automotive-tailored.

BUT products that are a bit more complex need to be weighed in a deeper value system. Take the two most complex: CRM and DMS; operational softwares that influence how your staff interacts with customers. Not only do those systems require some soul searching before considering costs, but many non-automotive CRM and ERP systems have struck-out in the automotive industry. There is definitely a steep barrier to entry in some technology areas.
 
It all looks good until the automotive vendor gets 500 accounts and learns to change and fine tune the tool specially for the auto industry and little by little works better and better but your other tool doesn't change because it works well for traffic attorneys and chiropractors.