Autotrader.com Annual Sales Meeting 2009 - Another Side of AutoTrader?

[OFH]

IMO, the AT rant here is all about value. Sure we get leads. WHEN WE DISCOUNT! No discount, NO LEADS.

Many of the DR crew here were around when AT was just a baby. Rates were cheap and dealer competition was sparse. The result was lotsa leads for little money. As a bonus, AT had little competition, The Early adopters were rewarded.

AT deserved to raise its rates. It's only mis-step is it used NewsPrint as the "gold standard". AT felt that dealers were going to spend $3-400 PVR,so why not move most of it to AT?

Profit PVR is NOT what it was in the good 'ol newsprint days. AT and the internet have decimated the old school dealer model and whyinhell use old school ad models to justify AT's value? It just pisses me off when I hear this pitch.

The ENTIRE Newsprint industry is crawling into the fetal position and sucking their thumb. AT is a web site, it has none of the legacy costs that newsprint has. AT can cut rates and survive. Newsprint... DOA.

oLd FaT & haPPy

 

[Cargurrl]

OFH newspaper isn't even a competitor to us anymore. great you have the knowledge about print but we do compete against radio and TV as well. glad our team all came from traditional media. we help dealers rewrite their schedules all the time. same exposure, lower spend and WE get the $$$$ thanks for the business dealers! the blessing is, we don't get complaints from our dealers and haven't in over 2 years. guess this market hired the right people with the right relationships. our customers even run our meetings. nice to see ATC did it so sales reps can here good and bad.

 

[i-autoknow]

bought my first AT contract in 2000 for $199 . Heck it was free before then , Manheim would post my cars right after I bought them at the sale . I have always sold cars from online ads . Has the value deminished since my free listings ? Depends how you look at it . If you look at from my cost ......free in 2000 to $2500.00 today in 2009 ....well yes, it's more money , but as I look at from my ability to sell more cars to more people and getting my prospects the best information to help them make the best decision for them .....well , yes I make less per unit , to be competative , howewever...... when ATC started in 2000 they had less than 200k cars online and less than 500k visits per month . They now have 3.5 million cars listed and 12mill. visits per month !!! Honestly , I hope other dealers will drop ATC , thats more looks on MY cars . I can't find any other media who will bring me more trackable , qualified prospects to my inventory . Last time we surveyed our sold clients , 78 % used the internet to find their car . I agree ATC grew very fast and became arrogant with the "you need us attitude" . Bottom line .....they/ATC built the largest pond , stocked it with the most fish/(my inventory) and has attracked the most fishermen/(on-line shoppers) . If I was not on-line , I would be out of business today .

 

[Joe Pistell]

i-autoknow,

That was really well written, very creative! Be sure to stop around more often!

Joe
p.s. HAS ANYONE's USED CAR BIZ JUMPED WAY UP THIS MONTH?

 

[Alex Snyder (blog)]

Nice post David. If ATC sticks by the things they said during that Vegas meeting, then they are on the right track! I would like to become an ATC fan again.

 

[Alex Jefferson]

I think part of the challenge is that the more dealers that are on Autotrader the more diluted the value becomes but the higher they raise their prices. This inverse relationship provides a huge dilema for ATC and on the dealer side. If someone does a search for a 2007 Honda in your area and there are 1000 in the search results, what are the chances of you you receiving that lead? Yeah, I know you gotta "makes sure you have pictures and descriptions, and blah blah" I'm sure most on DR are already doing the basics. Then you pay for "premium listings" or "spotlights" or these other "added value" features. I just shake my head because it's a tough cake to bake. Once again, I'm always satisfied with the reps but in this market sometimes that's just not enough.

 

[Dan Morgeson]

I have been with ATC for six years, I have been through & part of those infamous blitz's & adding the dealers..."what have you done for me today". As an advertising consultant (& in mgmnt for approx a year) I will say that not only did I appreciate your article, I very much appreciate the direction we are headed. Being in sales all my life I realize this is all built on relationships, & going back to the "core" values that make us successful. Not only do I believe we'll stay the path on great customer service...I KNOW we will! (by the way, I REALLY enjoyed yor class!)

 

[David Metter (blog)]

I appreciate the nice comments about the post. It was easy to write because I really felt like they are doing the right things for us, their customers. I met some really great people who are just as passionate about their job as many of us are. We all (ya'ah, as they say in Atlanta, GA) need to remember that the chief at the top of the mountain usually takes all of the arrows. Just ask my counterparts at AutoNation, Asbury, and Sonic. I bet they would agree.

As far as the Kool-Aid comment.... If Kool-Aid equals Vodka and Red Bull...than yes Joe, I was drinking the Kool-Aid!

 

[SJBconsult]

David, thanks for your thoughts on the annual conference in Vegas -- it was a great time and as a rep for ATC I'm encouraged by the changes and the validation that the approach to building relationships and servicing our customers is the right direction. This happens to be an approach and way of doing business that many of us were already in tune with but the fact that the company is alligning their objectives to support this move.

On another note -- the presentation you did was very interesting -- you've given us some steps and ideas to bring to our dealers that when the time is right -- and once they can master the basic levels of merchandising -- we'll be able to consult on that next level of digital marketing that can help advance their objectives online. Thanks for your contribution and I love you what you guys are doing at MileOne.

 

[SJBconsult]

Alex, it's good to see a touch of positive feedback from you. Many of us appreciate the work you do but it's often weighted with a negative spin that may or may not be rational or true -- especially since guys like me are on the front lines and know that the comments are off base (at least in my neck of the woods) so these little notes of optimism from you are great.

We need to see more objective views on the various issues that dealers are facing with respect to internet and 3rd party sites and although I enjoy most of the content on this blog -- it seems to have become a forum for bashing vendors.

Every company has areas to improve and grow in -- I guarantee I can find a handful of customers that were not happy with your dealership for one reason or another. Does that mean we should bash your dealership and create a thread dedicated to reduce your value? No - I don't think that would be the best way to convey constructive criticism.