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New Service Levels Playing Field for Single-Point Dealers

November 1, 2011

SARASOTA, Fla. — Dealers United introduced a new service in which it will act as the conduit for single-point dealerships to negotiate better terms and prices with vendors, and bring costs down through volume purchasing.

“From 2000 to 2009, dealer groups with more than 20 stores grew by 64 percent while the rest of the industry fell by 28 percent,” said Matt Buchanan, Dealers United co-owner and Sarasota Ford dealer principal. “As an industry, we’re facing the reality of a business fueled by dealership chains at the expense of family-owned businesses. Our goal with Dealers United is to protect single-point dealers by leveling the playing field.”

Dealers United will act as the voice for single-point dealerships while giving vendors the ability to market to a highly targeted group, according to the company. Acting as the community’s liaison, Dealers United will interview vendors about what makes them unique from their competitors and then introduce the hand-selected vendor to members. The members will then “tip” a discount from the vendor into action when enough of the dealerships sign up to receive the product or service at a substantial discount.

“Dealers know what they need more so than any outside party,” said Jesse Biter, Dealers United co-owner and HomeNet Automotive founder. “However, I do know vendors. I know how to negotiate the best prices (especially when buying in bulk), I know how to determine the good ones from the bad and I know how to ensure the terms and conditions, including a service level agreement, are all favored toward the dealer.”

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