Yagoparmo,
There’s many ways to interpret what you wrote so I’ll try to break it down. First, I’ll take your comments with a grain of salt because you offer a competing product and maybe you would never want to see your competition with an advantage. You mention some of the reasons why a dealer would need to change a vehicle's sale price because they spent too much at auction for it or that the recon cost was too expensive, is that the only reasons why a dealer needs to update price? Do your dealerships only advertise their vehicles with the one sale price and never need to update it? I think not.
I didn't say it is not important to update prices. What I said (or sarcastically try to say) is that it is more important to buy the right car and spend the right money getting it ready than starting a race of changes to see if we get a fish on the hook. We are focusing in the wrong activity: Lowering prices after we have made so many other mistakes.
As for having a competing product... we were among the first ones to offer 6 updates per day to Autotrader and we also have a delta update, API, etc. That doesn't mean I think it the best approach to the business.
Yagoparmo,
Second, there’s no denying ATC is one of the largest vehicle websites offering vehicles for sale. Great photos, accurate and descriptive vehicle options, and having the right price is keying to turning an online shopper into a buyer. So if an online shopper views several websites before making a decision, I need to ask what other websites does ATC provide the inventory for? KBB.com? Maybe More? And of the 4 other website companies part of the HomeNet Near-Time Network, maybe your shopper might visit include some of them? Such as CarsDirect, Showroom Logic, Dealer E-Process, and Social Dealer. What if HomeNet is successfully in adding more website companies to that network? Does that change your mind?
If having the lowest price is key, then we should be in a race to the lowest common denominator--being the cheapest at all times. There is more to the car business: Unique vehicles, hard to find, opportunistic sales, and many more.
So I agree with you that lowering the prices brings sales what I argue is that we are focusing on the wrong activity and that since customers look websites at so many disparaging times during the sale process this will be a hard thing to control effectively.
I guess you could advertise this to customers: "
Our network updates lower prices than any other network faster" and build that expectation in the market. Then we will cry for building this.
Yagoparmo,
Third, you say "to know the biz and your market" and that buying the vehicles at the right price and keeping recon cost low is the best way to be a successful dealer? Your comments almost turn back the clock to when a big blue ape on top of the dealership was the best advertising for a dealership. Are you saying that vAuto shouldn’t have a customer base? What about the other pricing tool companies? I know enough about these pricing tools to understand their need in the market place. These companies offer tools do some much more than just update sale prices.
You are assuming that I said a lot of things based on a few words...
You can and should use as many tools as you need, whether is the old NADA book in your back pocket or vAuto in a smart phone to support your decisions but if you don't know the market to begin with you will not be successful.
In some cases these tools are creating a false sense of safety when buying and that is a negative. The sale process is fragile, a good team of recon people can bring your expense per car down $500 and help you be a lot more competitive. People and team over technology.
Yagoparmo,
It seems very basic, updating faster is best. It’s like a race to be online first. Regardless if a dealership chooses to update prices every minute, hourly, daily, weekly, or monthly; getting it there now is important. To make this product even better, I think HomeNet needs to expand their product to near-real time updates on freshly added vehicles and vehicle deletions. HomeNet has done a good job with managing to reduced their upload times to some of the best times I’ve seen for a data management company, for example, it only takes hours to update Cars.com and ATC and with a manual force feed, updates to Dealer.com can be realized within an hour and the same is true for many other websites hosted by HomeNet. It’s not for everyone, but my customers enjoy the convenience of knowing their cars are online fast.
The ability to go “near-real time” with price and vehicle comments is a huge advantage over the competition. Hopefully the folks at vAuto can expand on their plans to effectively use this tool to give its dealers the edge.
It is an advantage only if just one dealer can do it, if all of them can, it is a race to the bottom.
Yagoparmo,
Lastly, I researched your website and it says that PGI Auto and Dealer E-Process bagged 6 DS awards and when I researched Dealer E-Process’ website it says it received 6 DS awards with no mention of PGI Autos. So, is that the same Dealer E-Process company that HomeNet claims to have as its Near-Time Network? If so, how’s that? Why’s that? Are you part of that company? If so, then why is it updating prices in near-real time with HomeNet when you don't think it's an advantage per you? I'm not attacking you, just seems very interesting.
Just because I don't agree with a technology doesn't mean we will not integrate our companies to use it. Some customers wanted it so we have it.
I predict dealers will agree with you more than me and everyone will look for a way to lower their prices faster. Every industry has done that, it seems to be a law of business.
What I said in my comments is that this is not exciting not a game changer. I wouldn't be excited to be able to be the first one to have the cheapest car in the room so I make the lowest gross profit.
