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[RESULTS of] POKING THE BEAR! What did you pay for CarGurus last month? Use the Form and let's compare!

Dan Sayer

Boss
Dec 4, 2009
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Dan
As a spinoff of the @Jim Lease post, "Cargurus might be coming for you soon. PRICE INCREASES", and a plethora of previous posts in DR, why don't we just compare in order to encourage CarGurus and others to just be as price transparent as they tell us we should be? I know CarGurus is watching these so if there is a line in our agreement that prohibits me from doing this, you have my number...

Dealers, use the form below to enter your DMA (there is a map if you don't know), your Sept inventory counts, Sept sold counts, your SRP and VDP information, and *gasp* your September invoice amount. No need to disclose your name or your dealership. I'll leave it open through Monday and then post the results in this thread early next week. Thanks!

Use the Google Form here

Price_Form.png
 
Aug 7, 2020
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Greg
This is a great idea. If it becomes common knowledge what dealers are actually invoiced vs. what the company proposes they pay, it'll be good for dealers.
 

FLAT6

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Oct 22, 2020
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DAN
Thanks for doing this! Filling out the form but confused on the VDP math. The example states 9129 so enter 89156. I don't get it. My Sep VDP is 10717. So I enter____? All this is a bit new to me.
 

Dan Sayer

Boss
Dec 4, 2009
231
199
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Dan
Thanks for doing this! Filling out the form but confused on the VDP math. The example states 9129 so enter 89156. I don't get it. My Sep VDP is 10717. So I enter____? All this is a bit new to me.
That, sir, is a typo. Sorry about that. Fixed it. Thanks for participating.
 
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Dan Sayer

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Dec 4, 2009
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Dan
For the sake of giving CarGurus some constructive feedback, I added a question of "Fairness vs Value". I think it's only fair to give them some feedback as to why they get picked on. If it's Fairness, they can probably just publish their rate sheets and how they price markets and settle most people down. If it's Value, they still have a bit of work to do.

I feel like their idea of what dealers' "Willingness To Pay" is, is based on either an attitude of superiority ("dealers need us") or a failure in how they structured/timed their growth and are scrambling to balance their expenses ("increase our RMR ASAP to appease investors"). Either way, they could have avoided a lot of this headache by learning from AutoTrader...
 

Dan Sayer

Boss
Dec 4, 2009
231
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Dan
Morning! Fill this out if you have a moment this morning. The more reporting, the better!
 

Dan Sayer

Boss
Dec 4, 2009
231
199
Awards
1
First Name
Dan
Thanks for those that submitted so far. I'll let it run through month-end in order to get more responses (16 as of this morning)
By the way, if you ask your CarGurus rep to explain their pricing structure, they will.
 
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Reactions: Jeff Kershner

Dan Sayer

Boss
Dec 4, 2009
231
199
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Dan
Removed at request of poster.
Well, crap. Thanks Obama.

Kidding. Not sure how that would be off like that. Unless they made a change from 2019 to 2020. I couldn't have possibly made a mistake... I thought I had make a mistake once, but I was wrong.
 
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Dan Sayer

Boss
Dec 4, 2009
231
199
Awards
1
First Name
Dan
Well there are a couple things that I learned conducting this little experiment:

1) It is in the CG dealer agreement that we shouldn't share pricing with other dealers and Cargurus isn't going to die on that hill (especially if I'm showing 19 out of 30k dealers world-wide https://investors.cargurus.com/investor-relations).
2) Cargurus cemented, because I had already experienced it, that if a dealer has an issue with their price, Cargurus will discuss how they arrive at that price with the dealer. Apparently there is a CPL component which I didn't include in the survey because we all know what happens when you ask a dealer "how many good leads did you get?"

I know there are a number of people in this forum that have worked on both the retail and vendor side of the business so that will give a different lens when having these discussions. Now, we may have had a bad experience in one or the other, or both, which will tint our lens. My personal experience at Dealer Inspire/Cars Inc was actually great so my "tint" leans towards a mutual respect and general outlook that most vendors are wanting to be great partners. My attitude towards Cargurus is no different. "POKE THE BEAR" is click-bait and not a jab *insert rimshot*. Keep in mind that many vendors lack context of retail (both fixed and variable), which then leads to plenty of misunderstanding and hurt feelings.

The results of the survey are a little wonky and such a small return (2 are mine lol) that really no earth-shattering conclusion could be drawn from it. I'm sure if @jon.berna conducted it, it would be waaaay more better. It does, however, show that dealers are curious and alway comparing with others. My mom still says, "Comparison if the thief of joy" FYI.

Image 2020-10-30 at 8.29.30 AM.png

The majority of the participating dealers have a main concern of "Fairness". I would assume then those dealers see value, but just want to make sure they're maximizing their expenses or if they aren't paid after expenses, watching out for their leadership's profitability. If the dealer said "Value", then I would hope they've had a conversation with their CG rep. There may be a handful of bad reps (no one is perfect) so if you need to run up the chain, Cargurus leadership isn't out of reach (they're literally in this forum).

If you have had discussion, and you still feel that the ROI isn't good, then cancel. Pretty simple BUT you should make sure your inventory mix, market pricing, photos, descriptions are on point first otherwise your problem may be you... (we suck at pictures at the moment)

Here are the live results:
And if you want to contribute to the survey for Sept 2020, it is still open here: https://docs.google.com/forms/d/e/1...uPN5ywFtzmV__614FxicPE9Q/viewform?usp=sf_link
 
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