Local Classifieds vs big Third Party Listings

[tnfly]

Hey all,

I found DealerRefresh while researching pricing for 3PLs like Autotrader, CarGuru, etc. What a great resource.

I operate a regional Classified Ads website. I'm researching because we recently partnered with HomeNet to provide automated inventory imports into our listings for dealers in our region. I still have no clear grasp on the cost of these 3PL services for dealers. I've seen bills of $700 to $7,000 and much more. I'm trying to find the right position for us in the industry and appropriate pricing.

We have about 300k monthly visitors within driving distance of our home base. Our brand is well established in the area for general classified but vehicles as well, more so for FSBO than dealerships. A free account can have 10 ads at a time. A paid account can have 25. Many smaller dealers take advantage of our service, but the larger ones just seem to employ services that layer onto their DMS and syndication services and don't bother with the manual entry previously required for our site.

When we began the project to offer feed imports, we were after the additional inventory more than anything. These feeds come at a per rooftop cost to us and we believe that we can provide some great value compared to the larger 3PLs, so I am challenged to create a value proposition that dealers will be happy to purchase. In an ideal situation, I sign up every dealer in my radius, they all pay a reasonable subscription fee, I market my site as the best place in the region to find a used car and everyone wins.

I figure it's a bad idea to walk up to a potential dealership partner and ask: "So what would you pay for...." So my questions to you (If you don't mind):

• Do you see online classifieds as a legitimate place to list your inventory?
  • BTW, we are more polished than CL
• What sort of pricing would you expect?
  • I have no expectations of being AutoTrader replacement, but rather a high-value addition
  • We plan to offer tiered packages (by #of listings), the ability to feature listings, and other promotions in the future.
  • We have a customizable storefront (Logo, header image, embedded FB feed)

I appreciate any insight that you can provide. Feel free to be candid. If you see this sort of thing as low-brow, I want to know so that I can manage that.

Thanks!

-Alex

 

[Tallcool1]

Alex

If I were you, I would identify who my competitors are. Your competitors are not Car Gurus, Cars, Auto Trader, etc. Those sites are in a different league in terms of site visits.

Maybe look at carforsale (as an example). They charge $99/mo and actually GIVE the dealership a website for that $99. In my mind, if I were in your market that is the kind of number I would be hunting for. At that kind of number you should be able to build your inventory. Inventory combined with SEO drives site visits.

I might be able to offer a little more insight if I knew the name of your site.

Good luck to you! Monumental task you are undertaking, but I will be your biggest cheer leader!

 

[tnfly]

Hey,

Thanks for the reply. All great points. I consider my closest competitors to be Craigslist and the apparently soon-to-be-defunct FB auto feeds. I'm not trying to position with Car Gurus, Cars, and AutoTrader.

I look at these big third parties because I want to compliment them as a more regional-focused outlet as well as understand what sort of cost per SRP/VDP we need to be a fraction of. Those sites are used by people shopping for autos and nothing else. Of course, they provide top-tier tools, SEO, a focused audience, and national reach. For us, as a general classified ads site (with thousands of auto listings as well), there is some chance of discovery by folks browsing for other items.

I think we're in the same ballpark. I expect an entry plan at around $50. Probably $100 and $200 plans that include additional listings and promotion within the site.

Our site is well established in our region as a brand and in SEO. If you search Google for: used + (car model) + (our city) we will have results on page 1 along with CG, AT, and the local brand dealer (we'll be under those guys - but still on page 1). I'm happy to share the domain if I can figure out how to DM here

The bigger fear is this: If a dealer is spending $10,000/mo on these other services and I come up offering local syndication for $100/mo, I'm afraid that I'll get treated like I'm not worth talking to. My main goal is to build value for our users by offering a robust inventory selection and I need buy-in from the dealers to do that.

Thanks again. I'll take all the input I can get!