Inventory Management - What's your Favorite Feature?

[justinventory]

@Chris Leslie I know there are a lot of services that do websites and inventory, so I was not sure how common it was to pay for a service that just exports your inventory.

 

[umer.autojini]

@justininventory, it is quite common and it becomes quite messy. But it should not be. As your website provider or lot manager or pricing tool should be doing this for you.

 

[justinventory]

I'm trying to determine if there is opportunity, particularly with smaller independent dealers, to replace Frazer, cars for sale etc. with a modern 100% web based inventory management at competitive pricing. I know CFS charges 99/month with a website and other things like marketing that probably doesn't work.

I'm wondering if a per car inventory tool, like maybe $1 per car up to 100 cars would be enticing.

 

[umer.autojini]

@justinventory it is worth a shot... but note their are close to 120 different vendors that do this kind of thing already. Frazer is more of a DMS. So if you were to build a full blown web based DMS it might be the way to go. May be follow the Sugar CRM license modal... If you are looking to just build an inventory management system it is lot of effort and reward is not great at $1 a vehicle. Due to the headache that goes in with exports. A single vendor having a problem and troubleshooting that will simply eat into your margins. Plus then you have close to 190 or other sites where the dealer may want the data to go to... and all vendors have their own specs.

Lets do a bit more in depth break down...
You will need a solid Good vin decoder, and anything good will cost you minimum .15 cents a VIN. But at the start due to less volume that cost is going to be likely around .35 cents... You can try the free Edmunds decoder... but results are mixed and so so... Say you allow unlimited images... or say 28 you take multiple version... (75x75, 320x320, 640x640, 1024x1024) the storage costs their are close to .05 cents; If not more, for a reliable service provider. You have accounting, marketing, and development that needs to be paid... your margins at a $1 are looking quite slim. Even at $100 a month you hardly make any money to cover your self. CFS is in the volume game. They had the tech and infra from the portal and $99 is just an easy get.

 

[Jeff Kershner]

I wonder how many dealers pay multiple vendors for inventory management software and only use one? It seems interesting how much Wells Fargo got blasted for opening extra consumer accounts (at no cost to the consumer from what I understand) and yet automotive third party companies "sell" products that the dealer won't use or are redundant. Anyone want to do the math on that??

Glen, I would bet every franchise dealer in the US is paying multiple vendors for at least one services/features that overlaps from one vendor to another. As for inventory management - a lot of website and CRM providers offer some type of "light" inventory management service, but it's not going to replace what I achieve with HomeNet. So am I paying multiple vendors for the same service even if it's not a line item on the invoice?

 

[justinventory]

Glen, I would bet every franchise dealer in the US is paying multiple vendors for at least one services/features that overlaps from one vendor to another. As for inventory management - a lot of website and CRM providers offer some type of "light" inventory management service, but it's not going to replace what I achieve with HomeNet. So am I paying multiple vendors for the same service even if it's not a line item on the invoice?

From a business prospective selling to Dealers, there seems to be an opportunity here. So many products out there are "$99/month for inventory, websites, SEO, SEM, marketing, chat" etc. when usually the only thing they actually deliver on is okay inventory exports and decent websites. At the same time I understand that a dealer doesn't want a login for 17 different services.

Maybe it is for another topic, but from a non-dealer I am always curious why dealers spend so much money on SEO/SEM when it seems 90% of the time AT, Cars and CarGurus (seems to be best) have better SEO than the dealership's websites.

 

[ggarvin]

Glen, I would bet every franchise dealer in the US is paying multiple vendors for at least one services/features that overlaps from one vendor to another. As for inventory management - a lot of website and CRM providers offer some type of "light" inventory management service, but it's not going to replace what I achieve with HomeNet. So am I paying multiple vendors for the same service even if it's not a line item on the invoice?

Good point but I mean less about the overlap but I've seen dealers paying for instance: vAuto, homenet and a lot service provider all for inventory management and distribution. Not only does that cause conflicts and issues but the dealer is paying way more than they have to.

 

[Chris Leslie]

@ggarvin Unless you use all 3 for different reasons. I've tried various ways to have less providers but none of them can do the various things I need done.

For example Homenet doesn't really do appraisals. Yes it does have some of the components in there but not as user friendly. Plus no mobile app. Vauto doesn't offer a way to set up pricing matrix's or allow me to customize my window stickers. They do have a really terrible mobile app to help manage inventory that I wouldn't suggest anyone try and use. It's a nightmare. Our lot services people have their own thing but they have an api build into Homenet which means we can have pics up the same day. They aren't using Snaplot but their own build.

 

[Rick Buffkin]

I've got both of the mentioned providers (VAuto and Homenet) and I agree with @Chris Leslie. There are things that Homenet does that VAuto simply won't do. And, things that VAuto does that Homenet won't do. Great example is the Shop Click Drive notification that was just emailed out for their Dealer Agreement changes happening on the Nov. 14th. On Nov. 14, you have to include a pricing field that only includes the dealers discounted selling price before any incentives or rebates. SCD will now only accept the feed from CDK and only that price field (Dealers Selling Price before incentives). So... How do you keep consistent pricing to all of your other marketing channels??? Also, It appears you going to have to use their OEM incentives tool in order to have consistient pricing on both the CDK website and SCD. At least I will have to. This is where I love Homenet!! Basically, my inventory is making a loop. A data conversion happens at homenet for the selling pricing before incentives then an export conversion happens and then that price gets exported. CDK gets the file, processes in their system and the final price after incentives gets exported back from CDK to Homenet and then from homenet out to all the other marketing channels. VAuto, won't do that or they can't. Gotta Love GM, Right???

 

[Chris Leslie]

@Rick Buffkin

Whaaaa Whaaaa Whaaa! Really..

I didnt think CDK would export pricing? I need to set this up like today!