AutoTrader.com Pricing???

[T.J.]

RE: Long story short: AutoTrader knows that the worst thing to happen to them from their rate hikes is that a bunch of dealers show up on DealerRefresh to complain about them. Big deal.

If we get the word out to as many contacts in the industry about dealerrefresh.com as we can it will become a big deal.

I have spread the word as much as I can. I think Jeff has created one of the best forums in the industry for ISMs, GMS, GSMs, and anyone working in the industry to express their thoughts, opinions, offer advice, and share industry information for all of us to be successful in any aspect of the auto industry business.

 

[Ted Greene]

I agree and have also made other dealerships we have relationships with aware of this thread. Alot of dealers I've spoken with in the past year or so all mention the absurd percentage of price increase from this company, be the dealer a wholesaler we deal with that has a small retail lot to the enormous multi franchise dealerships we trade with, everyone mentions the enormous price percentage increases and the lack or little service they ever receive from them. If we saw 50 to 80% increases in ROI we wouldn't mind paying for it but this is hardly the case. If I was a gambling man I'd also be willing to venture they're going to be put up for sale soon because based on what I've seen & read on here it certainly seems they maybe heading that way.

 

[EK]

If you think AT has more of an audience that Google does, you are sorely mistaken. I work for a dealership website company and I can tell you jumping on googlebase first was one of the best decisions we ever made. Guess how much we charge for googlebase? That's right, absolutely nothing.

To stay in the game these days, you have to move away from 3rd party lead providers and start getting your website with easy to find inventory placed well on search results. If a customer sees your name in the pay per click area and on the organic results, you are almost assured to get a click at the least.

The price of doing this compared to paying AT or any other lead provider a ridiculous sum of money plus the cost of the lead is a no brainer.

 

[Frank S]

As I mentioned earlier, imagine if Google improved the Base site features, pushed it out of Beta phase and actually decided to market & sell the sites features for half of what autotrader.com's rates are, it could crush them. Some autotrader execs have got to be reading this and wondering why there are these concerns regarding their price structures. It's because were tired of paying inflated rates for an audience size that really hasn't grown in pace w/the rate increases nor have the features paid off in delivering more eyeballs to our vehicles hence haven't done a hell of alot with ROI for us. We are basically salivating for the better mousetrap at half the rate, build it and we will come!

 

[Jake]

Along the same lines as TJ "Long story short: AutoTrader knows that the worst thing to happen to them from their rate hikes is that a bunch of dealers show up on DealerRefresh to complain about them. Big deal":

The insane rate increases year after year work for Autotrader because the increased revenue from dealers who stick it out will always outweigh the loss of revenue from cancelled dealers. After the dust settles, some of the cancelled dealers inevitably go back and voila: Autotrader is even further ahead in recurring revenue than before.

Case in point: I worked at TraderOnline (owned by Trader Publishing) when BoatTraderOnline.com literally doubled their rates across the board. Even dealers who signed up a week prior got a letter in the mail saying they had to pay twice as much as what they signed up for last week. The thinking was the same: the site does generate enough business to justify the costs, and although some dealers cancel because they're ticked off, the number of dealers who stick with it outweighs the cancellations and there is still a net gain for Trader.

The difference between Autotrader and BoatTrader though is that at the time BTOL doubled their rates they did not have any competition. Autotrader DOES have competition now, and from the dealers I've been examining lately the other classified sites are producing a better ROI for half the cost.

 

[esietsma]

Phew....what a post and comments! I just spent a good 45 minutes scrolling through and reading everything! (Just don't tell my boss!) As I peruse through point and counterpoint (most of it being point, point, point) - I can't help but see the tiny tip of the iceberg poking out from the ocean of discontent. The question remains - will the iceberg surface or just sink due to fear.

Tim Morris hit the nail on the head - sure, ATC will read through this (as I know many of their head people already have) and be annoyed that some of their clients are complaining and then they'll look at each other and say what should we do? They will check their recent cancellations that are minimal in number and say - "Let's go get a drink! Woohoo!" Most all of those who complained suggested a solution - "cancel." Yet, I wonder, after your complaining - will you? Will you take your own advice or just hope the others posting will do it to help you out, so you don't have to worry about losing a few sales each month. Or waiting for Google Base to come along and squash the competition like a little bug and then they will run for President and then World Ruler for All-Time. (Google is evil - I am sure of it, but I can't wait for their phone) It's a bit like volunteering or donating - many of us assume the "nicer" people out there will do it, relieving us of the time commitment or dollar drain.

Perhaps this blog will do something more than just cause me to procrastinate doing work - perhaps it will cause a movement and cause dealers to take action instead of just feeling better by venting. It could be planned like the immigrant "work strike" where everyone cancels on the same day - that would really send a message. (Hopefully better than the poor immigrant work strike - that was a complete bust! They're still getting carted back to Mexico by the truckload) Just think of the article Cliff will write in Ward's "Hundreds of dealers cancel Autotrader.com- prices slashed"

I can't wait to see who really goes through with it and who slinks off the comment thread knowing they will not...tick tock

 

[Alex Snyder (blog)]

Erica,

I'm ready to take your challenge. We just had a meeting about how our past and present ROI with AutoTrader stacked up, based on our numbers - not theirs, and the "proof is in the pudding". They've priced themselves out of our threshold.

I guess I can add to the "tick tock..."

 

[T.J.]

I have google alerts set up for many things I want to keep track of.

Here is one that just hit.

Link:

Loading…

atlanta.bizjournals.com

Friday, November 2, 2007
AutoTrader.com revs up its expansion plans
Atlanta Business Chronicle - by Justin Rubner Staff Writer

Atlanta-based AutoTrader.com Inc. is undergoing a major expansion.

The company, an online automobile marketplace owned by Cox Enterprises Inc., plans to hire 800 workers next year, 400 in Atlanta. Positions sought run the gamut from customer service and marketing to sales and tech-related positions.

AutoTrader CEO Chip Perry says AutoTrader has been expanding organically since being founded in 1997. But increased demand for Internet advertising -- especially from car dealers -- is leading to rocket growth, he says.

"There's an explosion of interest in online shopping," Perry said. "We're fortunate to be working in a category that's exponentially growing."

 

[Blanchard]

They'll need to hire at least 1000 because 200 of the folks already there will be out the revolving door by then. They have turnover like no other company you've ever seen before, it's like a disease that nobody in the company ever speaks of.

 

[Tim Morris]

T.J.: By making the comment "Big Deal," I was not at all insinuating that the DealerRefresh resource is a waste of time. Far from it actually, I think it is great that people from all over the industry now have a forum, thanks to Jeff.

When I say "Big Deal" I mean that is how I suspect the folks at ATC look at it. They know that the worst possible reaction by the majority of their dealers is a gripe on this thread. Dealers need to make the decision that AutoTrader is either worth the asking price or is not. And then stick to their guns in order to affect any chance for a policy change.