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WhatUSay
United Kingdom
2210 Posts |
 Posted - 07/14/2012 : 20:28:41
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We can never know reality!
They can find the stores very easy if they want. |
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rocky234
USA
8 Posts |
Posted - 07/16/2012 : 07:29:30
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Last time I checked, the products that are offered in F&I are sold, not purchased. That would be akin to life insurance companies doing away with their agents and just waiting for customers to call and ask to buy life insurance..... not gonna happen, at least not to the extent and penetration of what is 'acceptable' as far as profit goes... jmo
rocky234 |
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jimbo67
USA
2044 Posts |
Posted - 07/16/2012 : 09:57:35
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Another question dodged by WUS. If you will not share the source of the success stories with us, perhaps you can will answer the following:
Who does the demo ride?
Who takes the credit app?
Who writes the initial purchase order?
How, when, and by whom are back end products offered?
What is the ratio of sales managers to monthly sales?
Since this process has been in place for over 15 years, why has this "effective and simple model" not become wide spread? |
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Marv
Monaco
8010 Posts |
Posted - 07/16/2012 : 12:55:36
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I Googled car dealerships "without salespeople" and only uncovered a few used car operations. Couldn't find any new car operations but I'm interested in learning about this. I recall some stores experimenting with "greeters" back 30 years ago. Toyota store tried it in our twon and it failed horribly.
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Edited by - Marv on 07/16/2012 13:01:16 |
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jimbo67
USA
2044 Posts |
Posted - 07/16/2012 : 14:50:41
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There is a Toyota store near me that operates without sales people and without F&I. They sell 400-450 cars every month and do ok with back end products. They also have 4 "General Sales Managers" and 35-40 "sales managers". They are "no haggle" and pack everything in the payments when they are quoted. Not an upstanding dealer for sure.
“Success is getting what you want.. Happiness is wanting what you get.” ¯ Dale Carnegie |
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Marv
Monaco
8010 Posts |
Posted - 07/16/2012 : 18:41:53
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My last sales gig before jumping to the box was a Lincoln-Mercury-Mazda store. All the salespeople's cards read "Assistant Sales Manager" Customer's aren't stupid. They know what's going on.  |
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Marv
Monaco
8010 Posts |
Posted - 07/17/2012 : 19:16:25
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If the iPad does anything positive it will be that customers may have the perception we're catching up with the rest of the world in terms of technology.
It WILL NOT replace an FIM unless that FIM is so poor at his job. If a DP were to provide these things to SP and desk managers to use in closing sales they would probably fare no better than they are with an FIM running $3-400 per copy. The big difference is the training and adherance to federal guidelines and these I doubt would be observed based on what I see sometimes. |
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snowman
Libya
2128 Posts |
Posted - 07/18/2012 : 06:55:22
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WUS is right on where OEM's would like to take the business. If they could find a way to completely eliminate dealers they would do so in a heartbeat. Company owned distribution outlets are their wet dream. Customer looks at sample cars at a mall storefront, builds their perfect car online, fills out the app, signs on the screen, and a car is delivered to their house. An hourly clerk is at the store to help customers through the electronic process. Warranty service would be outsourced to contracted repair facilities.
Think it can't happen? In the 1980's and early 1990's I owned one of the largest volume travel agencies in South Florida. At one point my agency ticketed 6% of all travel out of Palm Beach International Airport. We existed because airlines paid agencies 10% of the ticket price as a commission to handle the transaction. A couple of years after we sold the agency, airlines decided that marketing directly to consumers through the internet and issuing tickets themselves, cutting out the middleman, would allow them to increase profits and have more control over customers.
Airlines used us until they could find a way to go around us and put us out of business. If you think automobile manufacturers wouldn't do the same thing, you're crazy. When was the last time you used a travel agency to buy an airline ticket? |
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Marv
Monaco
8010 Posts |
Posted - 07/18/2012 : 09:42:43
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| The manufacturers have already tried by buying up dealerships and fell on their faces. It ain't happening. |
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snowman
Libya
2128 Posts |
Posted - 07/18/2012 : 10:17:31
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Not next year, or the next. But, eventually. If they failed in the past, it was because they didn't do it right.
Marv, they don't really need us. Every year, more and more customers are shopping cars through mfr websites, getting price bids through dealership internet depts, and then buying from the lowest bidder. The dealership in this case is nothing more than a facilitator. The customer doesn't know who we are, doesn't care, and wants us to be as uninvolved as possible. And, if they can find a dealer who won't make them actually come in to sign paperwork, even better. The opportunity to buy direct from the mfr would be an answer to their prayers. Hell, I would do that! I may be in the market for a new Corvette next year, and if I could buy it direct from GM or the factory and take museum delivery at a lowball price I'd be all over that. I'm sure as heck not going to a dealership to shop for one. I'll build the one I want, see which dealer within a couple hundred miles wants to sell it the cheapest, wire them the money, tell them to park it out front, have the purchase order ready to sign, and throw me the keys.
The numbers of customers buying this way is, fortunately for us, still small. But, the trend is going in that direction. It's the way young people prefer to shop nowadays. Eventually their numbers will justify going direct and someone will stick their toes in that water. It may be a new mfr, or a new car line, but someone will eventually do it. |
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snowman
Libya
2128 Posts |
Posted - 07/18/2012 : 10:25:30
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| And, you're right, Marv, about dealerships. Mfrs wouldn't know how to run a dealership. That's nuts. The next business model for direct sales will not include dealerships at all. In the global internet world, dealerships are becoming less and less relevent every year. Eventually us old fogies who like to kick tires and actually drive cars before buying them will die off and the new-millennials, or whatever they will be called, will buy cars directly from their phones, or whatever telecommunications devices they are using then. |
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ns2973
12 Posts |
Posted - 07/18/2012 : 14:03:39
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quote:
Originally posted by snowman
Not next year, or the next. But, eventually. If they failed in the past, it was because they didn't do it right.
Marv, they don't really need us. Every year, more and more customers are shopping cars through mfr websites, getting price bids through dealership internet depts, and then buying from the lowest bidder. The dealership in this case is nothing more than a facilitator. The customer doesn't know who we are, doesn't care, and wants us to be as uninvolved as possible. And, if they can find a dealer who won't make them actually come in to sign paperwork, even better. The opportunity to buy direct from the mfr would be an answer to their prayers. Hell, I would do that! I may be in the market for a new Corvette next year, and if I could buy it direct from GM or the factory and take museum delivery at a lowball price I'd be all over that. I'm sure as heck not going to a dealership to shop for one. I'll build the one I want, see which dealer within a couple hundred miles wants to sell it the cheapest, wire them the money, tell them to park it out front, have the purchase order ready to sign, and throw me the keys.
The numbers of customers buying this way is, fortunately for us, still small. But, the trend is going in that direction. It's the way young people prefer to shop nowadays. Eventually their numbers will justify going direct and someone will stick their toes in that water. It may be a new mfr, or a new car line, but someone will eventually do it.
I disagree for one reason, the size of the purchase. Comparing the travel purchase experience to the second largest purchasing decision in the life of the average consumer is not apples to apples.
When spending what is becoming more and more the average median salary for an american on a car, consumers will always need people they trust and respect to offer expert opinions, the same is true for finance. This isn't some online shopping for a christmas present here, we are talking about a 5 year commitment to a 20 to 60 thousand dollar purchase, people need a personal touch, professional and trained sales staff will always have the advantage, in my opinion.
I also believe (as a member of generation Y), that as time with technology progresses, not only will professionals still be needed, i think smart business can separate themselves by providing a personal buying experience while communicating in the method the customer prefers. Customer service will always be the cornerstone of sales, just the manner in which we deliver that service will change. You'll still need professionals to send texts that are effective, communicate with social media etc.
All we are doing is replacing the method we deliver the service we always have. |
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jimbo67
USA
2044 Posts |
Posted - 07/18/2012 : 15:02:32
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I just sat in on a delivery of a 2013 Cadillac XTS which also comes with an Ipad.
OMFG!
The technology in that car is ridiculous. You could spend an hour or two just demonstrating the various dashboard configurations not to mention all of the voice commands the car recognizes. There is absolutely no way anyone can convince me that you could sell this car for 60k without a knowledgable sales person doing the demo. As the cars get more advanced, I project that we will need more and better qualified individuals to sell them. They will have to be part computer geek, part "car guy/gal", and part sales professional. To think that people can teach themselves these cars is simply ignorant. |
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snowman
Libya
2128 Posts |
Posted - 07/18/2012 : 20:16:14
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It doesn't matter how big the purchase is. You think I need a real estate agent to sell me a house?
And, regarding needing highly trained professionals to teach me the technology on a car... Give me a break! How much do the guys on the Geek Squad make? Give me a CD and an 800 number to the help desk. I'll be fine. |
Edited by - snowman on 07/18/2012 20:16:40 |
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snowman
Libya
2128 Posts |
Posted - 07/18/2012 : 20:20:33
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You people who think the car business can't survive without us are deluding yourselves with your own sense of self-importance.
Dealerships need us. We make the money they need to survive. Manufacturers need us like a dog needs fleas.
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Debating the Mobile F&I Menu
