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Beepi and Vroom and Carvana - will they make a DENT?

Discussion in 'Automotive News, Press Releases, and Events' started by Jeff Kershner, Oct 6, 2015.

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  1. Cullen C

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    @Tallcool1@Tallcool1 I agree that the thread has been entertaining.

    A couple of suggestions that are within reach for every dealer:

    Adopt a less linear sales process.
    Try to become more transactional online. If that isn't possible/desirable at least speed up the in store process.

    Maybe one of these solutions fit, maybe pieces of all of them do:
    http://dealersuccess.net/virtualdeal/
    Or
    Makemydeal.com
    Or
    Use what Sonic is learning about One Price:
    http://www.autonews.com/article/20151028/RETAIL07/310289996

    Know that your personnel strategy will have to change as well.

    Millennials will soon be the majority of the workforce. To attract and retain them you will have to change your recruiting; on-boarding; training; pay plans and career development opportunities.

    You will most likely need help from companies like hireology. Or similar consulting firms with expertise in these type of changes.

    In no way do I think that addressing those two areas alone will assure sustainability. The thoughts about changing your website are good ones, I would hope you are investing in the right digital presence. SEO, content and social media marketing.

    My guess is that as you make some of these changes you will uncover other areas of the business that need attention in similar ways.
     
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  3. joe.pistell

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    TY Clint,

    IMO, best post of the year. THIS IS DEALER REFRESH.
     
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  4. jscole86

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    Bill, I agree as well. I am very impressed by the experience that Apple and Disney provide to their customers. This experience is without a doubt, something we should all strive to be better at, as business owners & operators. That being said, comparing Apple to the auto industry needs to be done with a grain of salt, because they are not the same. Apple sells both directly to consumers AND wholesale to other retailers, ie Best Buy, Amazon, WalMart, Cell Phone Carriers, etc. On the wholesale side, Apple controls the pricing of those products to their products very carefully.

    In Q1 2015, 69% of Apple's revenue comes from iPhone sales, but Apple only sells 14% of all iPhones directly to customers. The other phones are sold by cell phone carriers and non-apple retailers. Apple is responsible for selling 40% of all iPads directly to customers, but iPads only make up 12% of their total revenue. Apple is responsible for selling 47% of all Mac computers directly to customers, but computers only make up 9% of their revenue. That being said, their revenue is pretty dependent on their distribution network.

    If you want to compare "apples to apples", let's imagine that it was just like the car business. 1st, let's separate the supplier from the retailer. Supplier A provides all iPhones, Mac computers and iPads to all retail outlets - Apple Retail, Best Buy, Amazon, Verizon, AT&T, etc -. at the same cost $175 for iPhones, $1,000 for computers and $275 for iPads (fake numbers). IMO, you would see the competition for revenue and market share increase drastically. Each retailer would create a unique customer experience and pricing strategy to go after the market - and they would each be different from each other. But if this was to happen, I also think you'd see Apple Retail become a lot more focused with how their customer experience, pricing, revenue and market share affects their operating income. And they may not be focused, month to month like the car business is, but assuming they are still a public company, you can bet their bottom dollar they'd be at least focused quarterly ;-)

    just my 2 cents.
     
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  5. WillMcG32

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    But isn't that just it? All Apple products are the same cost/price. Apple dictates, across the board, the price that all distributors get to retail the piece for. I agree with all of you that the experience is one thing but the business model is another. So let's go to the root of why these companies thrive (outside of the aforementioned Disney and Apple who provide superior products and more importantly service) - The origination of this thread - the disruptors. They exist because consumers want them to. Consumers are demanding something and whether we like it or not they're going to get it.
     
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  6. joe.pistell

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  7. Chris Leslie

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    oh dang.... And you were saying @ruggles@ruggles ?
     
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  8. ed.brooks

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    "According to CrunchBase, a website that tracks startup funding, four online marketplaces for used cars -- Beepi, Carvana, Shift and Vroom -- have raised $530 million since 2013, refining their technology to mount what could be the largest challenge to brick-and-mortar retailers." Now it's on to New Cars according to Automotive News - Another batch of Silicon Valley startups takes on car retailing.
     
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  9. Alexander Lau

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  10. Tallcool1

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    As Beepi continues their asset liquidation, I thought it would be appropriate to resurrect this thread.

    There is justifiably some "I told you so" comments coming.

    Maybe some members that know more about Beepi can weigh in on the inner workings and some explanation as to why they failed.
     
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  11. Alexander Lau

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    This was a while back, they merged with Fair
    https://techcrunch.com/2016/12/07/u...n-outside-of-ca-merges-with-stealth-fair-com/
     
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