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ADP & ReyRey - is it just about Paper and Chaos?

Discussion in 'ADP DMS' started by Alex Snyder, Sep 30, 2009.

  1. Alex Snyder

    Alex Snyder Administrator Staff Member

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    It is easy to take stabs at the big guys, and I have definitely taken my fair share at a few of them....but I'm curious. I'm curious as to whether a theory I heard the other day is true.

    I was speaking to a very successful person on the traditional side of our industry (on the manufacturer level), who will remain nameless, who told me there are two main profit sources for ADP and Reynolds:

    1. Paper
    2. Support

    He said it is in their best interest to keep dealers printing through their printers and on their paper. He also said it is best if products aren't perfect, so dealers ramp up huge bills in support.

    What do you guys think?
  2. CFrentzen

    CFrentzen New Member

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    Sounds pretty accurate in a general sense -

    Say Jack figures out how to make a vehicle run perfectly - never rusts, never breaks down, never fails. He can make any type of vehicle using this perfect method and make it affordable for the average person. Initial sales would be huge, obviously, but then what? An imperfect car that breaks down needs repairs, repairs produce revenue, etc, etc.

    Just my opinion.
  3. JohnScott

    JohnScott New Member

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    Just today I was commenting about all of the paper being used. Lets say 10-15 sheets per customer that comes through the service department by the time it gets to the cashier? Throw in the 5 sheet loaner car form, 2 copies of id and insurance? It adds up.

    Its really crazy, I was thinking today how nice it would be to have a "minority report" screen to shuffle the paperwork virtually. :D
    It doesnt have to be that hi tech, but one would think that the techs and service writers could use notepads/tablets where they would be able to access and modify paper work in real time without having to print it all. They could even interact with the writer from the bay using a chat program, or better yet use a cam on the notebook to speak with the writer using a video conference software package without having to leave the bay. That way they could keep working without having to come up and wait on the writer. All 3 departments could interact, writers, parts and the techs.

    Most of the service writers day seems to be shuffling through a pile of papers in their hands or on their desk. Things get piled up, misplaced, or someone comes along and throws a new pile on top of the pile they were looking for, its a pretty inefficient system.

    I dont have a solution, but its something I will be thinking about as I learn more.

    Did I understand correctly that you have to use ADP paper in the printers? Why cant you just buy a substitute at a cheaper bulk rate?
  4. mattwatson81

    mattwatson81 Getting Refreshed

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    Don't a lot of dealers buy forms from Wholesale Forms and other companies as well though?

    They charge for customer support?
  5. Alex Snyder

    Alex Snyder Administrator Staff Member

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    Typically the biggest savings on one of the big two's DMS contracts is to bargain on the printers, paper, and the support rates.

    Yes Matt, they charge for certain supports. It is the most convoluted support setup I've ever seen. Tier 1 is clueless and they are just a body answering a phone, Tier 2 can help with the basic stuff Tier 1 should help with, and then there are the tiers that are behind the curtain you can't talk to. But if you need their help it can be billed by the hour with no way to actually look over their shoulder to see if they spent 5 minutes or 5 hours on that problem. Sometimes the issue is taken care of for free, but it depends on your contract and what product it is.

    Yes, I have a special puke pail I put certain companies into. Because when I'm done talking to them I toss my lunch because it is so sickening.
  6. JohnScott

    JohnScott New Member

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    In reference to my post about tablets I just found this tonight,

    Leaked Microsoft Courier Footage Is Hot [VIDEO]

    The hardware and software junkies here are going to really like that video.


    Since so many of you are fans of MAC here's their version if you haven't seen it




    I think there's a lot of potential for tablets, especially in the business world.
    Last edited by a moderator: Nov 5, 2014
  7. FromPA

    FromPA New Member

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    You would think they would change some of these practices over the years. I speak to a lot of dealers who say they have been pounding me for years! (PC version) Every department in those big companies must generate revenue... You walk a very tight rope when "nickel and diming" customers.
  8. Jason Walter

    Jason Walter New Member

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    Its funny that you posted this...the dealer and I were just in a meeting about how much we were spendng on forms with ADP!
  9. mattwatson81

    mattwatson81 Getting Refreshed

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    About how much does it cost for the paper to do one car deal?

    One of the reasons dealers love our CRM (and other CRMs as well) is they can print plain paper forms for a lot of the forms in their deal packets.
  10. Jeff Kershner

    Jeff Kershner Founder Staff Member

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    The "paper business" makes total sense. How many of those forms get messed up when the prints f up and nothing aligns and you go through a half box of forms to get the print to line back up.

    Gotta love it when a "monopoly" prevents your industry from progressing.
  11. kirchnmi

    kirchnmi New Member

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    Its funny when you here dealers ask why they need to purchase the paper from the company that supplies a product. Why do i need to get my car serviced at a dealership? Because of the support! Does the kid at Mr. Lube know how my 2011 works? If i install aftermarket parts on my car does a manufacturer warranty it? Does the dealership fix it for free when my after market products no longer works or caused subsequent damage? I've heard ADP has a pay per click which i don't understand. Reynolds sells paper, but they are a software company, nobody says you need to purchase maintenance on the printers or the paper in your dealership. Buy your paper & printers from Staples or Best Buy and save yourself some money. The smaller DMS companies don't offer hardware or hardware support. The larger ones do only for the convenience of their customers.
  12. yagoparamo

    yagoparamo Well-Known Member

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    It is a monopoly because it is actually cheaper and easier to do biz with ADP/Rey. I've seen lots of dealers try other CRM tools, and they all have their share of good things and bad things. The car biz is so different from dealer to dealer that finding one solution fits all is hard. Therefore we have solutions that adjust to their best ability to each dealer's needs.
  13. ddavis

    ddavis Well-Known Member

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    Yago, Cheaper and easier? Ask a dealer what they spend on data processing. Just give me what one of the large automotive groups spends in a month. It doesn't have to be AutoNation, I'll take any of the top five.
    Last edited: Nov 26, 2011

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