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Dominion DMS

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

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Alex Snyder

Alex Snyder

President Skroob
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May 1, 2006
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#1
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
Alex Snyder said:
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?
Click to expand...

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
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?
 
#5
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
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:
#7
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
Alex Snyder said:
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?
Click to expand...

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!
 


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