The Web Design Industry as a Whole is a MESS!
A 2020 report by accessiBe, analyzing over 10 million webpages, found that a large majority (98%) were not compliant with the Web Content Accessibility Guidelines (WCAG 2.1), which are the basis for ADA compliance.
And if a website is not ADA compliant you can get sued and fined so by focusing on this and by focusing on attorneys, W3C valid code, and .5 millisecond load times I hope to avoid the pricing wars.
However to make this work I would have to focus on clients with deep pockets like attorneys and put a lot of time and thought into educating them and if something peaked my interest or if I needed the money I would have no choice but to compete on price.
Of course another way to do this would be with a membership of some sort…
Imagine if you could create a membership site, charge $999.99 per month, and sell 1,000 packages.
You'd be making nearly a million dollars a month.
If you charge $100 per month, to make $1,000,000 per month, you would need to sell 10,000.
Consider the five reasons most people don't buy...
1.) no money
2.) no time
3.) no need
4.) no urgency
5.) no trust
So then the question becomes how does a dealership remove himself from the pricing war?
MAYBE:
- Enhanced Customer Service: Building trust through knowledgeable staff, transparent practices, and attentive care can create loyalty that goes beyond price.
- Unique Value Propositions: Offering exclusive financing options, extended warranties, or service packages can justify a premium price.
- Digital and Omnichannel Strategies: A seamless online experience (including virtual tours, easy appointment scheduling, and real-time inventory updates) can differentiate a dealership, making the buying process smoother and more appealing.
- Community and Brand Reputation: Being an active, trusted local presence with community engagement and positive reviews can help customers feel confident in their purchase.
But then the real question is how do you compete with the current online players to take back the used car business.
They can leverage their physical presence and local reputation to build trust and offer a personal touch that online-only platforms often lack.
- Omnichannel Experience
Blend the convenience of online shopping with in-person services. This means providing a robust, user-friendly website with high-quality virtual tours and transparent pricing, alongside the opportunity to test drive, inspect vehicles in person, and receive expert advice from knowledgeable staff.
- Superior Customer Service:
Focus on delivering exceptional customer care. Personalized attention, tailored financing options, and after-sales services (like warranties and maintenance packages) can help differentiate the dealership from faceless online transactions.
- Local Advantage & Community Engagement:
Many buyers value the ability to speak directly with experts and enjoy the convenience of local service.
- Digital Transformation & Technology Investment:
Invest in modern digital tools and technologies to streamline the buying process. This might include integrating online inventory systems, appointment scheduling, digital financing options, and even home delivery or virtual consultations, which help bridge the gap between online and offline experiences.
- Value-Added Services:
Offer services that online platforms cannot easily match, such as personalized vehicle customization, comprehensive trade-in evaluations, and bundled service packages that enhance the overall value proposition.
What problems do dealerships have with these online platforms?
1. Problem/Pain Points
Dealerships consistently highlight the following struggles with competing against online platforms like Autotrader, CarGurus, Cars.com, TrueCar, Carvana, Shift, and Vroom:
- High Costs and Poor ROI: Many dealerships find the cost of leads from platforms like TrueCar and CarGurus exorbitant compared to the quality of those leads.
- Price Transparency Issues: Online platforms often promote price comparisons that favor buyers but create challenges for dealers.
- Customer Mistrust: Some platforms allow dealers to list vehicles with misleading prices.
- Shift to Online Shopping: The rise of e-commerce platforms like Carvana has disrupted traditional dealership models. Customers increasingly prefer seamless online transactions, leaving dealerships struggling to adapt their sales processes
- Lack of Control Over Customer Data: Dealers often feel restricted by tiered subscription models on platforms like CarGurus, where accessing customer contact details or insights requires paying higher fees.
2. What They've Tried That Didn't Work
- Relying Solely on Internet Sales Departments: Many dealerships use internet sales as a lead-generation tool rather than enabling full online transactions. This approach frustrates customers who expect a seamless digital experience.
- Discount-Based Pricing Strategies: Attempting to undercut competitors by lowering prices has backfired for some dealers, as it erodes profit margins without significantly improving lead quality or conversion rates.
- Subscription-Based Advertising on Platforms: Paying for premium listings or leads on sites like Cars.com and CarGurus often results in low ROI due to poor lead quality or unresponsive customers.
- Traditional Marketing Channels: Some dealers continue to rely heavily on outdated advertising methods (e.g., print ads or basic social media campaigns), which fail to capture the attention of modern, tech-savvy buyers.
- Minimal Investment in Digital Tools: Dealers who underinvest in website functionality, online financing tools, or virtual showrooms struggle to compete with the advanced user experiences offered by online marketplaces.
3. What Their Dream Outcome Looks Like
- Seamless Omnichannel Experience: A hybrid model combining the convenience of online shopping with the personalized service of physical dealerships. This includes robust websites offering transparent pricing, financing tools, and virtual test drives.
- Affordable and High-Quality Leads: Platforms that provide cost-effective leads with high intent to purchase, ensuring better conversion rates and improved ROI on advertising spend.
- Control Over Customer Relationships: Direct access to customer data without excessive fees or restrictions imposed by third-party platforms. This would allow dealerships to build stronger relationships and loyalty programs.
- Level Playing Field in Pricing Transparency: A system where all listings include full transparency (fees, incentives, etc.), preventing deceptive practices that harm both consumers and honest dealerships.
- Enhanced Digital Competency: Tools and training that enable dealerships to offer competitive digital experiences—such as online purchasing options, personalized communication, and data-driven marketing strategies—without requiring massive investments.
So then the question becomes how would you go about building this platform and how would it work, how would you build something that would blow the current competition away and allow you to take back the online used car sales?
Because if you can take back the used car sales competing against the current dealerships should be a walk in the park...
1. Problems/Pain Points
Consumers frequently express frustration with the following issues when using online car-buying platforms like Autotrader, CarGurus, Cars.com, TrueCar, Carvana, Shift, and Vroom:
- Misrepresentation of Vehicle Condition: Buyers often find that vehicles are not in the condition advertised, with undisclosed mechanical issues or cosmetic damage only discovered after purchase or delivery
- Inconsistent or Poor Customer Service: Many complain about receiving conflicting information from customer service representatives or long delays in resolving issues
- Delivery Delays: Late deliveries are a recurring issue, leaving buyers without a car for extended periods despite having paid for it.
- Hidden Costs and Pricing Discrepancies: Some users report "clickbait" pricing or unexpected fees that make the final cost much higher than initially advertised
- Limited Transparency in Financing and Trade-In Values: Buyers struggle with unclear financing options and feel undervalued on trade-ins compared to in-person negotiations
2. What They've Tried That Didn't Work
- Relying on Inspection Guarantees: Trusting seller-provided inspection reports often leads to disappointment when vehicles arrive with unreported issues.
- Contacting Customer Support Repeatedly: Reaching out to customer service for clarity or resolution often results in inconsistent answers or no resolution at all.
- Using Multiple Platforms Simultaneously: Searching across several platforms (e.g., TrueCar, Cars.com, CarMax) can become overwhelming and still fails to yield better results due to similar systemic issues across platforms.
- Requesting Written Price Confirmations: Even with written confirmations, some buyers report bait-and-switch tactics at dealerships or upon delivery.
- Attempting to Negotiate Online: Many buyers find that online platforms limit their ability to negotiate effectively, leaving them stuck with higher prices than they might achieve in person.
3. What Their Dream Outcome Looks Like
- Transparent and Accurate Listings: Detailed, honest descriptions of vehicle condition with comprehensive inspection reports that match reality upon delivery.
- Streamlined and Reliable Customer Support: Consistent communication from knowledgeable representatives who can resolve issues promptly without conflicting information.
- Guaranteed Delivery Timelines: Clear and reliable delivery windows with updates throughout the process to avoid unnecessary delays.
- Fair Pricing and Financing Options: Transparent pricing without hidden fees, competitive financing options, and fair trade-in valuations comparable to in-person offers.
- Seamless End-to-End Process: A hassle-free experience from browsing to purchase, including easy access to test drives, return policies, and warranties that provide peace of mind.
What are your thoughts, how would you compete, how would you standout from the competition?
