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Dealers United first offering for dealers? What do you think?

Jeff Kershner

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I'll assume most of the community members and readers are aware of Dealers United and their mission "to place the power back into the hands of private dealers by leveraging the purchasing power of many dealerships and turning it into BIG savings."

Basically a group buying service for dealers where Dealers United sift through industry vendors that offer a particular service, while choosing the "Best of the Best" to be presented as the offer. Click here to learn more about Dealers United.

In a few days Dealers United will be launching their first group buy offering to dealer members (free to sign up).

Their first offering -- SEO. :dunno:


My Opinion: I haven't spoken nor given Dealers United much publicity here on DealerRefresh and maybe for a few reasons. Despite my relationship with Jesse over the last several years - I just haven't been able to "see" where Dealers United really fits into the landscape for dealers. Don't get me wrong, I believe in their mission and what they've set out to accomplish BUT I'm not sold on the end product with long term stability.

Not every service fits every business. Plus your placing someone/organization in the middle of the group buy, allowing for opportunities of confusion, mistakes and possible mis-representations worries me.

Then to have SEO as the first offer??
OUCH. Too many variables in SEO to try and BIG BOX into a group buy. IMO, Dealers United would have been better off choosing a more simplified product that most all dealers "Get and Understand" but are not executing on. A service that's more straight forward with less consistant change and variables.

That's my current opinion around Dealers United. Again, nothing personal towards the Dealers United crew.

For this first offering, Steve Stauning was in charge of digging through several SEO providers to choose only the best for dealers. This has brought up some heated discussion amongst some of the other industry forums. Apparently some believe having Steve as part of the process of choosing an SEO company could be tarnishing due to possible self interest.


A few questions for the community...

1. Do you see value in Dealers United?
2. Was SEO a wise decision as the first offer to launch with?
3. Should dealers merely outsource their SEO / Social campaigns with having NO education around the medium?


Below is an article written by Steve to help promote the first Dealers United offering. I encourage you to read it and then offer your comments...

Picking The Best of The Best
- Steve Stauning

As some of you may know, I served as the director of ecommerce for the Asbury Automotive Group (NYSE: ABG) a few years ago. One of the most rewarding things about working for a publicly-traded MegaDealer Group was the ability to not only negotiate from a position of strength (we had over 120 franchises back then), but also the luxury of relying on a team of experts to help us always select the best of the best providers of any product or service.

While our process was exhaustive (we once issued an infamous – and wholly unnecessary – 33-page RFP during a search for a new website vendor); we had a distinct advantage that most private dealerships do not have: we had the time to fully and deeply investigate all potential vendors. Our corporate staff didn’t have to worry about selling cars or responding to leads, so we had plenty of time to properly vet the suppliers.

Snake Oil Sellers Need Not Apply…

I’ve always had a passion for cutting through the BS in the automotive vendor world; and it actually makes me sick to read some of the gaming that goes on in the blogs (including this one from time-to- time). Not because it’s allowed – I don’t think it’s the editors’ jobs to investigate the veracity of every discussion post – but because private dealers are most often the victims of these opportunists. At Asbury, we could easily see through the smoke screens and sniff out the snake oil; for private dealers, this is not always so simple.

That’s why I’ve been so excited by what’s going on at Dealers United.

As some of you now know, I’ve had the privilege of helping Dealers United with their ambitious launch. Among the very cool things I get to do, is leading the vetting team for Dealers United approved vendors. This process, as I will describe briefly below, is hands down the most intensive investigation I have ever heard any company undertake to find the best of the best providers in our industry. (Even more exhaustive than the searches we conducted at Asbury.)

It’s No Beauty Contest…

I can tell you that assisting the Dealers United team has been unbelievably rewarding. The first deal (releasing March 28) is for Search Engine Optimization (SEO) services, and we left no stone unturned.

We didn’t just pick the most famous, most vocal or biggest names in automotive SEO and hand one of them a contract; although we certainly invited these companies to participate. We also didn’t care what the blogs said about a company (I already wrote that those can be gamed); so a self-made industry reputation and lots of dubious industry awards only got you an invitation to participate in the search.

These particulars didn’t sway us just as they should never sway you; and I can guarantee these wouldn’t influence the publicly-traded MegaDealer Groups when they’re looking for a provider. Simply put: we were on a mission to find the best, not the loudest.

A Dealers United Vetting is not for the Weak…

We started with 35 SEO Companies (yes, thirty-five); and over the following four weeks, we completed

an intensive investigation into their abilities (both stated and not). We examined the search engine optimization content they were capable of creating (and replicating and maintaining) for their clients; and we studied hundreds of their client websites and tested these for search visibility on Google and other search engines. Additionally, we scrutinized their processes, strategies and tactics to ensure everything they provided was true “White Hat” SEO.

Finally, we studied their ability to generate meaningful (and authentic) offsite content and links for their dealer-clients.

So, after four weeks of this thorough investigation that included webinars with those we felt were the top six vendors, we whittled it down to the very best provider. This supplier not only has a fantastic SEO solution, but they also understand private dealers enough to know that their job is to deliver great search visibility, while allowing the dealers to sell cars.

In other words: they are physically doing the SEO work, and not busy trying to train your team on the ever-changing world of search engine optimization. (While we value private dealer education above nearly all else, the realities of SEO and dealership turnover do not lend themselves to wasting a dealer’s money on SEO training for his/her team. As I’ve learned over the years, your team should be busy selling cars, not writing SEO content.)

It’s Not About Price…

The best part about our process is that we only considered a vendor’s ability to provide great SEO to the Dealers United members. We didn’t care about personalities; we didn’t allow any gaming; and we weren’t swayed by anyone’s PR machine. We were singularly focused: great SEO and nothing else.

It wasn’t until we felt we’d found the best of the best did we consider pricing in the equation. In fact, pricing was not even contemplated or discussed with 29 of the 35 invited companies – their solutions (for various reasons) were obviously no fit for our dealer-members, so why ask how much it cost?

Once we found a great fit with an exceptional company providing world-class SEO, we worked to negotiate a deal… and boy oh boy, did we negotiate one phenomenal deal for our dealer-members. (Sorry, but you’ll have to wait until the deal is released to our members on March 28 to learn the details.)

I Know There Will Be Sour Grapes…

During my days at Dealer Specialties and Reynolds Web Solutions we occasionally lost large OEM bids; and each loss stung for a short period of time. The difference between those losses and the ones that we will dish out every month with Dealers United is that being selected from an OEM RFP process is most-often associated with providing the lowest price, not necessarily the best service. So the “endorsement” value a winning company would receive from an OEM bid was often worth very little.

Not so with Dealers United.

Given that we’re still experiencing phenomenal growth – while already three times larger than all of the publicly-traded MegaDealer Groups combined – a winning vendor in our search can truly hold their head

high, because unlike an OEM RFP, this is not about price; and unlike industry awards or ratings sites, the Dealers United vendor selection process is intensive, exhaustive and comprehensive; and it cannot be gamed.

By the end of the last week of this search I was physically drained; but I can state without reservation that we selected the best of the best – and that makes me genuinely proud to be associated with something this important to dealers.

Good selling!



A few questions for the community...


1. Do you see value in Dealers United?
2. Was SEO a wise decision as the first offer to launch with?
3. Should dealers merely outsource their SEO / Social campaigns with having NO education around the medium?
 
I think it has no value for a dealer already in the right (digital) path and on the opposite hand has a tremendous value for a dealer that lacks knowledge and can easily get burned.

These offerings will probably not offer a high end product but a very safe way for smaller dealers to test waters and/or to run small digital budgets.
 
Jeff,

Thanks for the post,,,, I feel the more questions we can answer about Dealers United, the better. To answer your question about SEO,,,, from day 1 we decided that we wouldn't go out and suggest to dealers what they needed. Instead, we surveyed our dealers and they told us which products they wanted us to go out and research for them. We plan to do one product per month and since SEO received the highest responses we figured we'd start there. Our SEO deal launches March 28th and I'm certain our members will be happy with our research. But, keep in mind, we AREN'T an SEO company. Next month we'll be off of SEO and on to the next deal.

You mentioned:
"
IMO, Dealers United would have been better off choosing a more simplified product that most all dealers "Get and Understand" but are not executing on. A service that's more straight forward with less consistant change and variables.
"
I'd love to know what you had in mind. We surveyed our dealers with a list of 20+ different products we could help with, we also left an open "comment" box,,,, but we are always looking for new ways to help dealers.

As to your comment:
"
I just haven't been able to "see" where Dealers United really fits into the landscape for dealers. Don't get me wrong, I believe in their mission and what they've set out to accomplish BUT I'm not sold on the end product with long term stability.
"
I'm glad you believe in the mission. It's the mission that gets us out of bed each morning and keeps us excited to work hard for our dealer members. As for the end product and the long term stability,,,, I can certainly appreciate those concerns. I would understand them more from someone that doesn't know me well vs someone who does,,,, but, nonetheless, I can appreciate them. The end product will be a non-biased company that lives each day to advocate for the dealers. I/we dont' expect dealers to say OK and accept it,,,, we will work hard each and every day for as long as it takes to prove to each dealer in the industry that we are on their side. As to the long term stability,,,, we'll, financially I'm in good shape and I won't stop at anything to ensure Dealers United is around for the long term. Regardless, our members never sign a term contract so,,, no matter what, our members are always free to move on should, God forbid, anything happen to us.

kcar:
I'd love to see you elaborate on your comment. Are you not in favor of what Dealers United is doing or just not interested in SEO?

Yago de Artaza Paramo:
Great response, thank you! Without giving away too much detail about our first deal launching next week --- we have always considered what to do with such a broad dealer base as ours. We engage with vendors that are able to offer more than one product when necessary to accomodate the needs of our diverse dealer base. You will see that our provider not only has a best in class solution (wow, I sound like car guy ;-) but that they have something for everyone. Stay tuned.

Feel free to throw anything my/our way. I'm always interested to get your honest feedback.

Sincerely,
Jesse Biter
Co-Founder, Dealers United
 
Jeff,



Yago de Artaza Paramo:
Great response, thank you! Without giving away too much detail about our first deal launching next week --- we have always considered what to do with such a broad dealer base as ours. We engage with vendors that are able to offer more than one product when necessary to accomodate the needs of our diverse dealer base. You will see that our provider not only has a best in class solution (wow, I sound like car guy ;-) but that they have something for everyone. Stay tuned.

Feel free to throw anything my/our way. I'm always interested to get your honest feedback.

Sincerely,
Jesse Biter
Co-Founder, Dealers United

Jesse,

I really meant it in a good way so I'm glad you took it with that purpose.

The idea is fantastic and I hope dealers understand that you have a great and difficult task at hand. Creating programs that fit everyone is very challenging.

Good luck to you and your team.
 
Jeff I think I know how you feel. It seems like a big gamble for a first launch and maybe it is, but I think that if DU can manage peoples' expectations effectively and execute properly then DU could become a game changer. It all depends on what everyone expects and is willing to give and a lot depends on the vendor provider too obviously in how they satisfy dealers' expectations. I am rooting for this to work.
 
So here you have it. Dealers United chooses KPA (Parent company of TK Carsites) for their first offering (SEO) to dealers.


Dealers United Announces First Deal for Members: SEO Services from KPA

KPA beat out more than 30 other SEO vendors to be given the opportunity to present their best offer to Dealers United members.
Sarasota, FLA – March 28, 2012 - Dealers United, the first service to truly leverage the buying power of individual dealerships, introduced their first deal to members today, search engine optimization (SEO) services offered by winning vendor KPA. Dealers United, which launched in October of last year and is free for dealers to join, put 35 different SEO vendors through a rigorous testing process that included surveys, interviews, reference checks, verification of white hat SEO practices and testing before naming KPA the selected vendor.



The result is an unprecedented discount for the SEO services, only revealed to Dealers United members, along with industry leading terms and conditions.



“This launch represents the fulfillment of a promise we made to our dealer-members at the inception of Dealers United: we pledged the best deals; the best prices; and the best negotiated terms on industry-leading products and services provided by top vendors. I think our members will find all of that and more with our first deal with KPA,” said Matt Buchanan, co-Founder of Dealers United and Dealer Principal of Sarasota Ford.



In many ways, Dealers United acts as the business development arm for private dealerships and private dealer groups by researching vendors and negotiating their services at a substantial discount. Members cast their votes for the categories to be presented and receive monthly offerings at highly discounted prices from fully-vetted vendors. While members have the ultimate power in determining whether or not they buy the service, like any good buying community, the more members who purchase the selected deal, often times the better the pricing.



“It was a rigorous vetting process and we were up against some amazing companies in the industry, so we’re truly honored to be the first vendor selected by Dealers United, “ said Vane Clayton, CEO of KPA. “We can’t wait to get our SEO services into the hands of the Dealers United members and show them the remarkable power of truly great search engine optimization.”



If you are an automotive dealer and would like to become a member of Dealers United, please visit: http://DealersUnited.com. If you are an exceptional automotive industry vendor and interested in being considered for a future members-only deal, please complete the vendor registration process here: Dealers United. Dealers United is not just another buying group that “recommends” vendors and products to members. The community is, in effect, an extension of the dealer-members; and does not just negotiate deals or “group pricing.” Dealers United thoroughly vets all suppliers and categories well before negotiations with a provider for a given product or service.

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