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DealerTrack to Acquire eCarList
Adds Innovative Vehicle Merchandising Solutions to Industry Leading Inventory Management Offering
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Mark F. O'Neil, chairman and chief executive officer of
"We look forward to joining the
The financial impact of this acquisition to
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Headquartered in
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Factors that might cause such a difference include: economic trends that affect the automotive retail industry or the indirect automotive financing industry including the number of new and used cars sold; reductions in auto dealerships; the impact of some vendors of software products for automotive dealers making it more difficult for
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ResponseLogix® Provides Emergency Relief to Japanese-affiliated U.S. Auto Dealerships
Sunnyvale, Calif – May 11, 2011– ResponseLogix®, Inc., the leading provider of automotive digital response management software for internet leads, today announced a plan to help its Japanese-affiliated US auto dealerships cope with the substantial reductions in inventory they have begun to experience due to the Japan earthquake and tsunami that struck on March 11.
As Japanese auto manufacturers struggle to regain manufacturing capacity their US dealerships are expected to see reductions of 50 percent or more in vehicle inventory this summer. This substantial drop in vehicle production is already impacting certain brands. To help the dealers in its network that are most affected by this crisis, ResponseLogix has decided to reduce pricing by 40%in June, July and August for stores of the following brands: Toyota, Honda, Lexus, Infiniti, Acura, Mazda, Mitsubishi, Suzuki, Subaru and Nissan.
“It comes as no surprise to us that ResponseLogix would be proactive in an effort to continually be ahead of the curve in a continuous relationship build with their customers. This undertaking is exactly the sort of energy and thinking we look for in a business partner,” said Tim Porter, Manager at Zimbrick Inc.
“Without a doubt, the Japan earthquake disaster will impact U.S. automotive business for some time. We will soon realize the reach that Japan manufacturing has in the worldwide market. All dealerships inventory levels will be affected, some more than others. As we embark into these troubled waters, we’re glad to receive a helping hand from ResponseLogix,” said Richard Fisler, Associate V.P. of Marketing and E-Commerce at Conant Auto Retail Group.
Standing in Solidarity with Dealers
A recently published ALG Japan Crisis Report indicated that Japanese car manufacturers may experience up to a 100-day delay in the manufacturing of new vehicles. To confirm the dimensions of the problem, however, ResponseLogix wanted to talk with its own customers. The company surveyed over 100 of its dealers, of both Japanese and non-Japanese brands. The company determined that the effect of the earthquake on Japanese branded dealers is destined to be dramatic. Non-Japanese branded dealers, on the other hand, have experienced relatively modest and temporary impacts. Indeed, many non-Japanese branded dealers see market share opportunity. This dealer feedback was key to determining the company’s plan specifics. “Our company started in a dealership. We understand the role vehicle inventory plays in a dealership’s success. Now is the moment to stand in support of our Japanese-affiliated dealers,” said Tom Mohr, President and CEO of ResponseLogix.
About ResponseLogix, Inc.
ResponseLogix started in a car dealership. By observing the internet car buying sales process from both the dealer and the customer side, ResponseLogix determined that effective Digital Response Management is key to driving internet sales. With this in mind, the company created its powerful patent-pending solution suite, tailored to the needs of the fast-paced, multi-tasking dealer internet selling environment.
ResponseLogix delivers software as a service (SaaS) technology to auto dealers that engages the customer early in the car buying process and then propels the customer toward purchase. SmartQuote® delivers a relevant quote response within 10 minutes of internet lead receipt 95% of the time. SmartFollow® automatically follows-up and reactivates leads if the customer doesn’t buy right away. SmartFacts® delivers powerful analytics to help optimize the performance of Internet sales departments. ResponseLogix products are available in 40 US markets for new car franchise dealers covering almost all brands of vehicle. Additional information is available at www.responselogix.com.
Media Contact
Gabe Foo
Director of Marketing
Phone: 408-220-6488
Email: gfoo@responselogix.com
Website: www.responselogix.com
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DrivingSales
CarFinance Capital Launches: A Superior Way for Automobile Dealers to Finance the Growing Non-Prime Customer Base
New Solution for Current Supply-Demand Disconnect: Non-prime Auto Shoppers Roaring Back, But Lending Supply Has Fallen Significantly in the Recent Downturn
05.10.2011– Irvine, CA – CarFinance Capital LLC (www.CarFinancecaptial.com), today announced that it has launched as a new, specialized provider of non-prime auto financing for automotive dealers. The Irvine, California-based company is led by an experienced management team who previously built one of the largest U.S. auto finance companies (Triad Financial Corporation). CarFinance was formed to provide dealers with a better way to finance the growing ranks of non-prime car buyers and will first launch in the West Coast, expand to Texas in June, with a continued rollout across the U.S. throughout 2011.
“There is a clear need for a new, more dealer-friendly player in non-prime auto financing today,” said Jim Landy, CarFinance Capital’s President and CEO. “While the non-prime auto loan industry and consumer is storming back, a significant amount of lending supply dried up in the recent recession, so dealerships are woefully underserved. We believe the timing is right for a strong lender to fill this gap with a superior dealer process that delivers far more consistency, flexibility and one-on-one support than some of the more rigid, mechanized players. CarFinance is that lender, and our mission is to provide premium service to auto dealers so they can meet the needs of today’s non-prime customer.”
The Consumer Demand/Lending Supply Gap
CarFinance launches at a time when non-prime car buyers represent one of the auto industry’s most powerful, future growth markets -- but dealers still lack the right, specialized lending partners to tackle the vast industry opportunity. The recent downturn significantly increased the ranks of credit-challenged car buyers, with nearly 40% now falling into the sub-670 FICO score category[1]. Across 2009-2010, the number of approved non-prime auto loans plummeted from a pre-recession rate of 60% to only 5-9%[2]. Analysts concur that with the economy and car sales improving, and available credit slowly increasing, the non-prime auto finance market is now poised for the market’s first growth since 2007[3].
Strong Management Team With Deep, Successful Industry Roots
CarFinance’s management team is well positioned to address the needs of this market. The new company is comprised of the former executives that founded and built Triad Financial Corporation, one of the largest, top-tier non-prime lenders (1,000-plus employees) in the U.S. auto market from 1989 to 2005. CarFinance’s President and CEO, Jim Landy, served as Triad’s founder and CEO; Dennis Morris, CarFinance’s COO was a former senior vice president and product manager at Triad; CarFinances’s CFO, Jeff Butcher, held the same position at Triad, while Chief Credit Officer John O’Dowd was Triad’s director of credit risk management.
Landy notes: “While we launch with a fresh solution for dealers, it’s also very much a return to the market for us. We look forward to re-developing the partnerships with the thousands of dealers with whom we’ve had such a long, successful history.”
The CarFinance Difference for Dealers
The CarFinance team’s deep background partnering with auto dealerships means that they understand the importance of working to facilitate the dealership sales process, rather than inhibit it, which is why the product is designed to eliminate any surprises in credit and/or cashing contracts and to be consistent across the board. Benefits include:
• Credit for the mid-market non-prime spectrum: from 525 FICO, through 675
• Beyond black and white decisions: loan decisions preserve dealer flexibility and negotiating room, offering structuring options on an average approval, ensuring dealers can put together more profitable deals.
• Speed on contract funding side: so dealerships get reimbursed fast.
• One-on-One support: customer service experts available to answer questions and provide help
About CarFinance Capital LLC
CarFinance Capital LLC (www.carfinancecapital.com) is a fresh new company focused on partnering with franchise auto dealers to provide credit to non-prime consumers. Dedicated to premium service for its customers, CarFinance offers one-on-one support, consistent, predictable credit decisions, fast funding, multiple lending options, and deal-structuring flexibility to help auto dealers meet the needs of today’s non-prime car buyer. Headquartered in Irvine, California the company is led by Jim Landy and a seasoned team of executives that have long histories working together in the non-prime auto market.
Media contacts:
Melanie Webber, mWEBB Communications, (424) 603-4340, melanie@mwebbcom.com
Angela Jacobson, mWEBB Communications, (714) 454-8776, angela@mwebbcom.com
[1] CNW Research, cited in F&I Magazine, 4/2011: http://www.fi-magazine.com/News/Story/2011/04/Auto-Finance-Driving-Sales-in-Early-April.aspx?ref=-20110412&utm_source=Email&utm_medium=Enewsletter
[2] Associated Press, cited in Edmunds Auto Observer, 7/2010: http://www.autoobserver.com/2010/07/fewer-than-one-in-ten-sub-prime-auto-loans-approved.html
[3] CNW Research, cited in F&I Magazine, 4/2011: http://www.fi-magazine.com/News/Story/2011/04/Auto-Finance-Driving-Sales-in-Early-April.aspx?ref=-20110412&utm_source=Email&utm_medium=Enewsletter/ Experian Report cited at MSNBC http://www.msnbc.msn.com/id/40546261/m/videos/
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John P. Honiotes, Automotive Internet Technology Pioneer, Dies in Newport Beach
Newport Beach, CA, May 5, 2011 – John P. Honiotes, a lifelong auto industry executive who led the adoption of Internet car sales in dealerships across the nation, died May 3, 2011 in Newport Beach, CA, where he lived. He was 63.
Honiotes, named by Automotive News as one of the 10 most innovative individuals in the industry for building one of the nation’s most technologically sophisticated dealerships, was the original national sales director at Autobytel.com. He was the first to introduce dealerships to the concept of Internet car sales, and the Internet department model he developed continues as the norm in dealerships across the country today. Additionally, he formulated the first Internet training programs for dealerships and was instrumental in creating the first Web-based customer relations management (CRM) system.
“John was a true automotive Internet pioneer and helped shape the careers of an entire generation of automotive leaders,” said Dale Pollak, founder of vAuto.
Honiotes was born in Joliet, IL and began his automotive career nearly 40 years ago as a partner in a Dodge-Datsun dealership. In 1980, at age 33, he became the principal in a Cadillac dealership. His lifelong passion for people, cars and technology led him to California where he joined the founding team at Autobytel Inc. and played a significant role in helping the auto industry realize the potential of the Internet.
In 1999, Honiotes built a sophisticated AutoNation USA megastore in the Cleveland-adjacent community of Bedford, OH. The dealership was conceived from the ground up for web-savvy consumers, with design innovations that resulted in the Automotive News award.
He rejoined Autobytel in 2002 as vice president of automotive operations, where he oversaw the continuing development of the company’s dealer network.
Recently, he served as vice president of sales for SpaBooker, the technology division of SpaFinder, Inc., and as an automotive consultant. Continuing his passion for cars and people, he founded the Honiotes Car Shows, which remain popular events in Southern California. He was also a dedicated supporter of the U.S. Marine Corps’ annual “Toys for Tots” program.
“Without question, John introduced me to more people and automotive technology, that have been instrumental to my success, than anyone in the industry,” said Bill Krouse, marketing director of Polar Chevrolet Mazda, MN, and president of Krouse Consulting. “He always put the needs of others ahead of his own.”
John Honiotes’ father, Pete J. Honiotes, preceded him in death. He is survived by mother, Mary, his fiancée, Shari Malatesta, sisters Gail (Jerry) Austin, Lainie (Archie) Jenkins and Barb Honiotes and brothers George (Denet), Jim (Mary Jo) and Pete (Sally). He is also survived by his daughter Tanna (John) Mee and grandsons: John, Sean and Gavin Mee.
A memorial service and a foundation in his memory are being planned; details will be announced at a later date.
For more information, please contact:
Betsy Isroelit, 213.300.0108 / betsy@rbicom.com or Melanie Webber, 424.603.4340 / melanie@mwebbcom.com
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Autobase Launches Nationwide Seminar Series for Auto Dealers
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AutoRevo Appoints Bill Berry as Vice President of Sales and Greg Gifford as Vice President of Marketing
The two industry veterans will work in tandem to continue to build AutoRevo’s sales and marketing departments.
DALLAS, TX – April 25, 2011 – AutoRevo, premier provider of dealer websites and on-demand software for automotive dealerships marketing and selling cars online, today announced the promotions of Bill Berry to Vice President of Sales and Greg Gifford to Vice President of Marketing. Mr. Berry will be charged with developing and implementing the sales plan and strategic initiatives to increase revenues and market share. Mr. Gifford will be responsible for heightening AutoRevo’s exposure in the market and for driving company growth through creative programs and marketing initiatives.
“Bill Berry joined the AutoRevo team in 2006, and immediately demonstrated the sales know-how to help AutoRevo grow,” said Chad Polk, AutoRevo CEO. “He has built our sales department from the ground up, helping us to achieve exponential growth both as a Sales Consultant and as National Sales Director. I’m excited to make him a part of our executive team, and I can’t wait to see his expertise help AutoRevo continue to grow.”
Bill relies on over 18 years of experience in leading the AutoRevo sales team. “I’m excited to elevate my game and lead such a talented sales team,” said Berry. “It’s going to be an exciting year. With the recent product updates we’ve released, our dealer websites are bar-none the best websites in the industry.”
“Greg Gifford joined us in 2007 as a member of our design team. Having owned his own successful web design company prior to AutoRevo, he had tons of valuable marketing experience, and was promoted to Director of Marketing in early 2009,” said Polk. “His marketing expertise has already propelled our marketing efforts to the next level. Greg’s hard work and dedication will be an invaluable asset to our executive team at AutoRevo.”
“It’s an extremely exciting time to be in the marketing arena,” said Greg Gifford. “With the proliferation of social media and the decline of traditional advertising methods, you’re wide open to be really creative and think way outside of the box. As the industry rebounds from the Great Recession, we’re in a key position to grab dealers’ attentions and take a huge share of the market.”
About AutoRevo
A leader in the automotive industry, AutoRevo is a premier provider of dealer websites and on-demand software for automotive dealerships marketing and selling cars online. FastLot, the company's Internet marketing platform, delivers dealer websites, real-time vehicle pricing tools, inventory management, eBay Motors integration, search engine optimization (SEO), advanced reporting and much more.
Headquartered in Dallas, Texas, AutoRevo was founded in 2003 and has experienced triple-digit growth for the past seven years. The company is aligned with the auto industry's leading e-commerce sites, including: eBay Motors, AutoTrader.com, OVE.com, Openlane.com, Cars.com, Craigslist, Google, Vehix, CARFAX, and hundreds more. For additional information or to learn more, visit http://www.autorevo.com and blog http://blog.autorevo.com.
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AutoRevo Launches Corporate Rebranding
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DALLAS, TX – April 20, 2011 – AutoRevo, premier provider of dealer websites and on-demand software for automotive dealerships marketing and selling cars online, today announced the launch of its new corporate identity, unveiled last week with the roll-out of a completely redesigned corporate website.
The new company logo inspired the updated brand identity, with design elements that subtly convey brand attributes of both the company and its products: modern, efficient, precise, purposeful, and focused. Paired with the recent product update (which was the biggest in company history) and new service offerings such as Search Engine Optimization and Email Marketing, the new identity will better characterize AutoRevo as the premier provider of dealer websites and Internet marketing services for auto dealers across the country.
“The idea of rebranding AutoRevo was raised in the fall of 2010, when it was clear that we were transitioning to a company with a broader product line and premier services,” said Chad Polk, CEO. “We knew the timing had to be right, and once we realized that our spring product release would be the most robust update to our product in company history, we knew there would never be a better time to rebrand.”
“Our new brand identity is a logical step that communicates to both current customers and potential customers that we continue to provide products and services that far outpace our competitors,” said Greg Gifford, VP of Marketing. “Our new identity helps mirror the fact that we’re a forward-looking company with a commitment to ensure the success of every auto dealer we service.”
About AutoRevo
A leader in the automotive industry, AutoRevo is a premier provider of dealer websites and on-demand software for automotive dealerships marketing and selling cars online. FastLot, the company's Internet marketing platform, delivers dealer websites, real-time vehicle pricing tools, inventory management, eBay Motors integration, search engine optimization (SEO), advanced reporting and much more.
Headquartered in Dallas, Texas, AutoRevo was founded in 2003 and has experienced triple-digit growth for the past seven years. The company is aligned with the auto industry's leading e-commerce sites, including: eBay Motors, AutoTrader.com, OVE.com, Openlane.com, Cars.com, Craigslist, Google, Vehix, CARFAX, and hundreds more. For additional information or to learn more, visit http://www.autorevo.com and blog http://blog.autorevo.com.
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PCG Consulting Inc
Automotive Internship Program Starts May 25th
The first semester of the Automotive Internship Program (AIP) begins May 25th, 2011. The program is designed by PCG Digital Marketing to help car dealers attract and train the next generation of automotive marketing leaders.
The AIP semesters are scheduled in May and September of 2011. The program offers a 12-week training and certificate program for Digital Marketing and Social Networking. Candidates must pass a final test to be awarded their certificate.
The program comes with dealer marketing materials to use at local colleges, universities, and placement offices to attract qualified candidates. The course is a turnkey training solution that includes curriculum handbooks, weekly task planners, live weekly webinars, online best practices library, and will conclude with certification testing.
Dealers should note that the AIP is also an ideal solution for in-house training of existing employees to help them learn and master the successful digital marketing strategies shared in the AIP.
The AIP solves the problems dealers face with regards to educating new and current employees with the proper skill set needed to maximize online marketing opportunities.
Some of the highlights of the AIP include:
- Programs include printed curriculum guides and live instruction
- Online materials and community forums for support included
- Dealers receive customized marketing materials to send to local schools
- Programs offered or beginner and advanced skill levels
- AIP classes cycles three times a year: January, May, September
- AIP is affordable and provides tremendous value
This video by Brian Pasch, CEO of PCG Digital Marketing, explains the Automotive Internship Program in greater detail: http://www.youtube.com/watch?v=mmUfZsEFpiU&feature=player_embedded
The AIP has a one-time fee of $995 per student. There are still opportunities for car dealers to register for the program. For registration information, please visit http://www.automotiveinternships.org
About PCG Digital Marketing
PCG Digital Marketing (http://www.pcgdigitalmarketing.com) is a full service digital marketing agency that serves the Automotive Industry. PCG is nationally recognized as a leader in Automotive Search Engine Optimization (SEO) and automotive digital marketing.
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DrivingSales
ResponseLogix Releases 2nd Gen Quoting Solution
Sunnyvale, CA – April 27, 2011 - ResponseLogix®, Inc., the leading provider of automotive digital response management software for internet leads, today announced the release of its second generation SmartQuote® 2.0 rapid-quote response and SmartFollow® 2.0 follow-up marketing solutions for automobile dealerships. The 2.0 versions of these two products include exciting new features. For SmartQuote, this includes rich additional detail about the vehicles featured in the quote, presented on a consumer-friendly web landing page. For SmartFollow, it includes the addition of hyper-retargeting, at the cutting edge of personalized, relevant digital marketing.
Research shows 60% of vehicle shopping time is spent on the internet. Consumers who use the internet to shop for a new vehicle spend an average of 18 hours researching new and used vehicle purchases, according to a recent Polk®/AutoTrader® study. ReponseLogix has integrated best of breed internet marketing practices and advanced internet marketing technology to deliver consumers an immersive and enjoyable car buying experience, and dealers higher close rates on internet leads. Auto dealers can now deliver a feature-rich, comprehensive and personalized, web-based quote response within minutes of Internet lead receipt, followed by a 180-day follow-up program with both email and web marketing dimensions.
Selling Cars in an “Instant World”
Today’s always-connected digital lifestyle has created a new generation of savvy consumers who are more informed and more demanding in how they research, formulate purchase preferences, and buy automobiles. “Let’s face it, we live in an instant world, and people want information immediately. Consumers want to gather information and eliminate the dealers who won’t be considered, and move the dealerships that are willing to be quick and transparent with pricing information to the top of their purchase consideration list. The new SmartQuote 2.0 rapid-quote is feature packed with vehicle information and gives information instantly to a customer in a professional clean way.” said Mark Noger, Internet Sales Director, Germain BMW of Naples, Florida. Auto dealers need to deliver timely, consistent and feature-rich initial responses and highly impactful, multi-channel follow-up marketing to internet prospects if they are to win the sale.
New Feature-enriched SmartQuote 2.0 Multi-vehicle auto quote
The new ResponseLogix SmartQuote 2.0 quoting solution delivers a powerful multi-vehicle email quote. With a click, the customer visits a customized SmartQuote landing page packed with valuable information about vehicle alternatives. SmartQuote 2.0 includes multiple new and pre-owned vehicle alternatives, an expanded gallery of exterior and interior photos, support for video, and car safety information. New-car price quotes may include the TrueCar bell curve, revealing the competitiveness of the dealer’s price compared to the market. Used car quotes may include a CarFax® report showing more detail about the vehicle’s history. SmartQuote now supports links to social media, and car shoppers can share their price quotes with family and friends via email and Facebook links. If a car shopper is ready to take the next step, she can self-schedule a test drive, click to chat with a dealer sales rep, or even reserve a car with the simple click of a button.
SmartFollow 2.0 adds Cutting-edge Hyper-Retargeting Advertising to Boost Already Powerful Lead Management Solution
If a shopper does not take action to schedule a test drive right away, the ResponseLogix SmartFollow 2.0follow-up marketing solution begins. A comprehensive email campaign is initiated to reengage the dialogue between prospect and dealer. The campaign runs for up to 180 days. SmartFollow 2.0 features hyper-retargeting, which is at the cutting edge of digital marketing. Using SmartFollow 2.0, the dealer can now serve up to the consumer dynamically-generated Internet display ads presenting the exact vehicle the consumer expressed interest in when she submitted a lead, with the call to action “Schedule a Test Drive”. With a click, the consumer lands on a page where the test drive can be scheduled.
The combination of personalized email reminders and customized advertising are designed to nurture shoppers efficiently along the path towards the purchase. Video demo - http://responselogix.com/solutions/smartquote/
About ResponseLogix, Inc.
ResponseLogix started in a car dealership. By observing the internet car buying sales process from both the dealer and the customer side, ResponseLogix determined that effective Digital Response Management is the key to achieving both immediate initial response and effective ongoing follow-up. With this in mind, the company created its powerful patent-pending solution suite, tailored to the needs of the fast-paced, multi-tasking dealer internet selling environment.
ResponseLogix delivers software as a service (SaaS) technology to auto dealers that engages the customer early in the car buying process and then propels her toward purchase. SmartQuote® delivers a relevant quote response within 10 minutes of internet lead receipt 95% of the time. SmartFollow® automatically follows-up and reactivates leads if the customer doesn’t buy right away. SmartFacts® delivers powerful analytics to help optimize the performance of Internet sales departments. ResponseLogix products are available in 40 US markets for Toyota, Ford, Lincoln-Mercury, Chrysler, Dodge, Jeep, Honda, Lexus, Audi, Acura, Nissan, Infiniti, Kia, Hyundai and Volkswagen dealers across the US. Additional OEM’s will be supported soon. Additional information is available at www.responselogix.com
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Helms Brothers Mercedes-Benz Triples Gross Profit with NCM® Associates
Helms Brothers Mercedes-Benz Triples Gross Profit with NCM® Associates
Overland Park, Kan., May 2, 2011 ― NCM Associates, a leading provider of retail automotive 20 Group services, Education, Retail Operations Consulting and the originator of the NCM Benchmark® for Success program for automobile dealers, today announced that Helms Brothers Mercedes-Benz has tripled its gross profits through the implementation of the Mercedes-Benz Pre-Owned Profit Improvement Program under the guidance of NCM Associates.
Four years ago, Suzanne Cochrane, General Manager of Helms Brothers Mercedes-Benz in Queens, NY was running a dealership where the pre-owned department had a revolving door for managers and showed a loss of $100,000 at the end of that year. Goals of those managers didn’t jive with the goals of the dealership and inconsistent processes hampered consistent growth. The dealership Net to Gross ratio was 7.2%.
In 2008 Cochrane and her team signed up to be part of the Mercedes-Benz Pre-Owned Profit Improvement Program. NCM Associates was selected by Mercedes-Benz to assist dealers in the program and work with them closely to implement processes to improve their performance. After just one year of working with the NCM team, the Net to Gross ratio at Helms Brothers rocketed to 22 percent and with the program maintained its steady growth. At the end of 2010 the profit ratio had grown even higher to 25.7 percent.
According to Cochrane, a number of factors were working against them including management issues, high levels of competition from independent highline dealerships and a sluggish economy. They knew they needed a new strategy, but weren’t sure how to initiate the process. NCM Associates and their local consultant/trainer implemented financial controls, an accountability process for managers and conducted regular follow-up visits. Before the program, Helms Brothers Mercedes-Benz was selling 15 to 20 pre-owned vehicles a month and within one year increased the monthly pre-owned sales to 30 to 35 units. During one particularly strong month they even achieved a high of 40 units.
Vehicle pricing and branding:
Positive changes began almost immediately with merchandising of the vehicles. Recognizing the value of the Mercedes-Benz Certified Pre-Owned program every eligible vehicle was put through the certification process. The extra expense in certification was justified by the increased sales and value of the CPO program to prospective buyers. Customers realized the value of a CPO vehicle and were willing to pay a higher price for those vehicles.
Helms Brothers also implemented vehicle valuation software in the dealership so they could see what similar vehicles were selling for both at wholesale and retail outlets. This took their focus off “what can we buy it for” to “what can we sell it for” and this kept them competitive and profitable on each transaction.
Cochrane witnessed the value of focused analysis and structured implementation. “The Profit Improvement Program was responsible for a shift in our philosophy and made us really aware of how important pre-owned sales are for the success of our dealership,” she explained. “Now everyone gives it the attention it deserves and they are all accountable for making sure we stay on target.”
Know your inventory:
Next, management started doing daily vehicle analysis of the inventory with the sales team. This prompted some candid discussions between team members on what is selling and what should be wholesaled. Additionally it gave everyone “skin in the game” and kept them focused on having the right vehicles in stock.
The same reviews were done on all the trade-ins that came into the dealership. They looked at what comparable vehicles were selling for in the market. They asked if any of the sales people had prospects or past customers that might be interested in a particular vehicle; and if the unit was not up to the standards of the dealership with some cosmetic reconditioning, might it be better just to wholesale it.
Run lean and focus on retailing:
Profitable dealerships keep their focus on retail sales and don’t let the wholesale process interfere with their operations. Helms Brothers implemented a new wholesale process that took the units from their Mercedes-Benz and Volkswagen stores to an offsite location. Wholesalers are given a 24 hour window to inspect vehicles and then place bids on the vehicles they want. Bids are then opened and the highest bid wins. This eliminated intrusions on the day to day retail operation.
While Certified Pre-Owned Mercedes-Benz sales for 2009 were up 17.8 percent over the 2008 YTD sales when the program began, Helms Brothers Mercedes-Benz pre-owned sales were double that national figure. By closely working with NCM Associates and establishing a focused discipline, Helms Brothers was able to achieve incredible results in their market.
In closing, Suzanne Cochrane gave NCM credit for its role in the dealership’s turnaround. “While the Pre-Owned Profit Improvement Program was initiated by Mercedes-Benz, much of the success of the program at our dealership was due to the execution at the local level from the NCM Associates consultants, their tactical implementation and follow-up with our dealership management and sales team.”
About NCM® Associates, Inc.
NCM Associates, Inc. is the originator of the automotive industry 20 Group peer collaboration process and has been providing dealership Benchmarking, Education and Retail Operations Consulting services to the industry since 1947. Located in Overland Park, KS, NCM provides a robust suite of services designed to drive dealership profitability using its proven, operations-focused Benchmark® for Success program with new and pre-owned U.S. automotive dealerships, as well as with dealerships in more than 20 other industries. For more information about NCM Associates, visit www.ncm20.com or call 800.756.2620.
Contact Information:
NCM Associates, Inc.
10551 Barkley, Suite 200
Overland Park, KS 66212
913.649.7830
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