What ways could dealers be more transparent, IDEAS anyone?

[craigh]

Anything Cox, CDK, or Cars.com related is a complete waste of dealers time and money. Regardless of their spin, those companies are in it for themselves. They care enough and satisfy a paying account enough to make it happy.

For a part it's a dealers fault but I blame these high dollar companies for over selling their company. I really wish dealers would would grow a sack a ditch AutoTrader and Cox including ddc.

I think that's a bit harsh, but I understand your point.
I don't think the rationale of "in it for themselves" is a great argument when there's many other reasons these companies are less than ideal - I think every company is in it for themselves to a degree. The ReyRey and CDKs of the world are probably scared of everything that could come in (ie: DealerSocket making a DMS, Silicon valley entering their space, etc) and they're being incredibly rigid and difficult.

 

[ruggles]

ruggles,

Maybe you're onto something! You could start your own online community & call it DealerRuggles!


Let's talk about you.
Your comments are always about selling cars, but, all you ever do is defend the status quo. I'd like you to become an asset to our community. Please share a few of your new car selling ideas with our community.

An asset to the community? Perhaps pointing out the facts isn't being an asset? Does one have to be a kool aid drinker to be an asset? I'm waiting for someone to tell us why we should be trying to be more transparent. Why shouldn't we be talking about how to make more sales and gross profit? Is the future supposed to be charging everyone that same margin and anyone who disagrees is defending the status quo?

 

[joe.pistell]

...I really wish dealers would would grow a sack a ditch AutoTrader and Cox including ddc.

Chad,
You know I like you and your work, but you're a vendor now. Some ol' man biz advice Hide your disdain for your competition and let your products and solutions punch holes in them... one client at a time.

 

[csabatka1]

Chad,
You know I like you and your work, but you're a vendor now. Some ol' man biz advice Hide your disdain for your competition and let your products and solutions punch holes in them... one client at a time.

Sorry, some extremely bad phrasing and poor choices of words. Thanks Joe again for the kind words.

8:43 pm on Saturday night was a bad time to hit message boards, especially after a day of tailgating and a Nebraska loss. Still not an excuse for a bad post.

 

[joe.pistell]

Sorry, some extremely bad phrasing and poor choices of words. Thanks Joe again for the kind words.

8:43 pm on Saturday night was a bad time to hit message boards, especially after a day of tailgating and a Nebraska loss. Still not an excuse for a bad post.

Youdaman! I get the passion

 

[ed.brooks]

Thumbs up for showing some class @csabatka1 !

 

[dsflynn2000]

50% of consumers (survey) believe that a dealers NET Profit on a used vehicle sale averages over $2,000.

There's an article over on the blog with some interesting stats around what consumers believe dealers make on a used car sale. Be sure to read and review the chart.

Consumers will walk into an Apple store and lay down some big money and never once complain about the 21% NET MARGIN they just made. But boy oh boy they're quick to bitch over the average 2.2% net margin a dealers makes on a used car.

Check out the actual Google Consumer Insight chart

The truth is - the average consumer (possibly half) believes a dealer makes over a $2000 net margin on a used car sale. Could this possibly be a cause for the complaints? Seems obvious.

So how does one overcome this while helping consumers become more aware? Would it be wrong to disclose how the automotive market works?

What are some ways through transparency and education you can think of (or currently doing) that would educate the customer on the actual profit a dealer makes on a used car sale?

Hmmm, Well I for one feel that used cars are one of the last frontiers for profit. Is True Car starting a TR(USED) CAR SITE now? and going to further hold the dealers hostage on the pricing of preowned as well as new? Just kidding. But in all seriousness why are we becoming such consumer advocates? Profit isn't and ugly word.

 

[dsflynn2000]

Ed knocks it over the fence! 2 thumbs up, wayyy up!

Bravo!

 

[Tallcool1]

Why do 'our' websites suck?

1. Shoppers almost always arrive with more questions than answers.
2. Shoppers often buy a different car than the one that brought them in.

If our sites were great, the 2 observations above would not happen.


Clint, I too came from a position similar to yours. Listen closely to your shoppers, they reveal all kinds of insights that need fixing.

For example, this DR blog article 5 yrs ago Is Your Chat Used or Abused? This is where I discover that chat is used to find products (read: my site sucks).

Well, interesting observations. I don't know what to think about the customers having more questions than answers. Most of those questions revolve around financing at my store. Oddly enough, I took the time to write a huge FAQ page for my finance department...and it is the LEAST read page on my website. I suppose that is evidence of a part of my site that sucks. Customers want to know, the answers are on my site, none of them read the answers.

As far as shoppers buying a different car than the one that brought them in......I don't see that as evidence of a site that sucks. That is a fact of the vehicle purchasing/shopping experience. It used to be the same way 30 years ago when we ran print, radio, TV. I just believe that there are some things that can't happen on a website. Customers can't drive, sit in, smell, hear, feel, a vehicle on a website.

 

[joe.pistell]

Well, interesting observations. I don't know what to think about the customers having more questions than answers. Most of those questions revolve around financing at my store. Oddly enough, I took the time to write a huge FAQ page for my finance department...and it is the LEAST read page on my website. I suppose that is evidence of a part of my site that sucks. Customers want to know, the answers are on my site, none of them read the answers.

As far as shoppers buying a different car than the one that brought them in......I don't see that as evidence of a site that sucks. That is a fact of the vehicle purchasing/shopping experience. It used to be the same way 30 years ago when we ran print, radio, TV. I just believe that there are some things that can't happen on a website. Customers can't drive, sit in, smell, hear, feel, a vehicle on a website.

A very thoughtful analysis Clint! Well done!

Our Internet shoppers are invisible until they arrive at the dealership. Once they arrive, nearly every question they have points back to their personal Internet shopping journey.

...Customers can't drive, sit in, smell, hear, feel, a vehicle on a website.

Yup. In 2015, car shoppers don't want a shopping cart experience, they use the Internet to answer 2 questions

1. Which Car
2. What Store

In my decade inside stores, I can't think of how adding profit transparency would answer any questions, or motivate a shopper. Shoppers have wayyy too many questions when they arrive. I use "our websites suck" as a wake up call to anyone that thinks that hanging a cart on our websites addresses car shoppers top concern.