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Look what's happening to margins:[ATTACH=full]2509[/ATTACH]http://manheimconsulting.typepad.com/manheim-consulting/2015/07/dealer-groups-post-higher-used-sales-on-narrower-margins.htmlWhat does this have to do with Tesla?IMO, negative trending margins is evidence that our business is changing. IMO, we're watching an evolution (mostly created by Dale Pollak) where multi-roof dealerships find more profits from operations (i.e. volume) than hand to hand combat from opportunistic commissioned sales reps. This evolution reminds me of the death of the family farm. The small farmer can't compete with the mega farmer, so the small farmer sells to the mega farmer (think Warren Buffet funding Asbury). These new mega dealerships will be 100% focused on getting rid of any position that can't delivering a positive and predictable shopper/owner experience.Net result: Shopper wins.The tide is slowly shifting... there's a new day coming for us all.
Look what's happening to margins:
[ATTACH=full]2509[/ATTACH]
http://manheimconsulting.typepad.com/manheim-consulting/2015/07/dealer-groups-post-higher-used-sales-on-narrower-margins.html
What does this have to do with Tesla?
IMO, negative trending margins is evidence that our business is changing. IMO, we're watching an evolution (mostly created by Dale Pollak) where multi-roof dealerships find more profits from operations (i.e. volume) than hand to hand combat from opportunistic commissioned sales reps. This evolution reminds me of the death of the family farm. The small farmer can't compete with the mega farmer, so the small farmer sells to the mega farmer (think Warren Buffet funding Asbury). These new mega dealerships will be 100% focused on getting rid of any position that can't delivering a positive and predictable shopper/owner experience.
Net result: Shopper wins.
The tide is slowly shifting... there's a new day coming for us all.
