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Discussion in 'Industry News, Resources and Leadership' started by Jeff Kershner, Jun 30, 2015.
@JoePistell What do you think is causing the climb?
IMO they've been trying to be more dealer friendly which I think has kept clients and brought back former ones. Also, as more OEMS move toward MAAP, I think more consumers are going to look to sites like TC to find a discounted price. I've seen lead volume increase at for our Mazda store for example.
TrueCar's stock story, from my POV... step by step
IPO'd at $10 in 2014
Investors loving the vision push price to $24 in late 2014
Dealers begin lawsuits
Investors begin 18 months of selling returning the stock price to $10 in july 2015.. then...
TrueCar Concludes Partnership With AutoNation July 9th
Frustrated investors gave up on the TrueCar vision, Selling accellerates, (causing the stock price to fall 50% below IPO price
A new leader is found (Chip Perry), Scott Painter resigns. <---- #BAM
Perry begins forensics to find the cancer and re-invent the model (keep what's good & kill what's bad)
AutoNation jumps back on (a big win for CP and a signal for investors)
What big questions are unanswered?
Do shoppers like the 'new' TrueCar?
Do dealers like the 'new' TrueCar?
Does the new TrueCar model make money?
Does the new TrueCar model have room to grow into a far larger concern?
TrueCar is up 175% in 11 months.
Update, almost one year to the day, TrueCar stock is up 330%
What's the main reason for such an increase?
#1). Investors believe TRUE has turned itself around.
#2) I made note of TRUE at $5.00 (it's all time low price), there by causing the >300% increase.
Also, if you eye ball TRUE's stock price since IPO, today's $17 price is close to it's median price, so, one could conclude it's somewhere near it's historical fair value.
There is no doubt Chip Perry has improved TrueCar's fortunes. But it is well known that every part of TrueCar's business is a loser with the exception of ALG and their affinity programs. Some of their "research" is actually handy, but most is completely self serving. I'd like to see some research done to tell us what percentage of TrueCar consumers, the ones they charge for, were already predisposed to buy from our dealership because of a previous experience or proximity, and just used the TrueCar service to use in bargaining. Or maybe they were a company employee who visited the site to check their employee purchase deal. Or the relative of an employee. OR a referral from a current good customer. They take OUR CUSTOMER hostage be demonizing us, then ransom them back to us. And 11K dealers are fine with this. I don't blame TrueCar for rampant dealer stupidity.
The smarter dealers I see use the TrueCar site as a closing tool without any relationship with TrueCar itself. And the don't have the $299. or $399. added cost to deal with.
RE: Research - Man, we have so much to take advantage of these days! There are all these people doing us such a big favor providing us with all of this data. We're told what consumers want, as if we didn't know before their research. From the beginning of the auto business, consumers HAVE WANTED TO BARGAIN. They just want to be guaranteed they'll win.
We're told customers are so much better educated than before, whenever "before" was. The truth is, consumers today have more information but KNOW LESS. Its like drinking from a fire hose for them. And THAT is our biggest challenge. Straightening out on the things they think they "know" that are just wrong, and doing it in a way where the consumer can save face and still buy from us. Too often, the consumer gets straightened out by one of our sales people or managers, but then goes to our competitor to buy. It's and ego and pride thing, and too many dealerships look at selling as something we do to someone rather than something we do together.
That's why I'm getting sick and tired of sports metaphors in our business. This is another reason we need more women in our business. I don't think our female sales people and managers think in terms of "Beast Mode." I'm certain our female customers don't. Knute Rockne sales meetings were always bullshit. Our business is a marathon, its not a sprint. Its not a quarter or the second half. Having a sales staff breaks down the door after Saturday morning sales meeting is a bunch or immature penis measuring male bullshit. Its about time we grew up.
As an industry, we're trying to overcome that MAJOR challenge with an never ending flow of "Green Peas." Why? Because OEMs and Dealers regard their own sales people with a certain disdain. When there are cost pressures, where do they go first? Let's pencil the sales staff again, and sell it to them as if we're doing them a favor.
So here's something you can take to the bank. A consumer is 3 TIMES MORE LIKELY to do business with your dealership if they aren't meeting your sales person for the first time. That was true before the Internet and its true now. We just have more and different ways to communicate with those consumers, and most of those don't work to our advantage. But it is what it is. Its always been about the relationship. Any research that says to the contrary is just bull shit.
And that's my rant of the day.