Help me answer this question, and I’ll buy you lunch…

Earlier this month, my firm announced it would conduct a survey of franchise dealer advertising. We made our decision after hearing from many dealers that finding value in digital marketing is an increasingly difficult task. Unlike other surveys in the automotive marketing space, we are not looking to determine the best lead provider, the ideal medium mix, or the right time to run television ads. Instead, our approach is more economics-based. We’re looking to understand the ways in which dealers determine how and where to spend their advertising dollars and how this might change in the future.

We hope to reveal where dealers plan to spend their ad bucks in the next two years, as well as the reasons behind their choices. In one of our early findings, we found that many automakers cut back on their advertising spend per vehicle by as much as 20%. Automakers are placing more pressure on dealers to advertise both their dealerships and their franchise’s brand, yet many dealerships have seen their new car profit margins shrink while the probability of decreasing unit sales climbed. Will dealer advertising spend remain at today’s levels?

To help answer these questions and many others, I’m seeking dealers, general managers, and marketing/e-commerce directors, who can help provide simple and top-level insights into their store’s advertising operations. To participate, a dealer must complete a very simple 10-minute online survey.  Participants will receive a $25 American Express gift card (enough for a free lunch) and my firm’s findings on this topic.

If you are interested in participating, please e-mail your name, dealership name, and job title to adsurvey@maryannkeller.com. We will respond within 24 hours.

From witnessing inspirational talks to walking the halls of Congress, the National Automobile Dealers Association’s conference in Washington, D.C., from Sept. 8-10 was an enormous success, especially for our industry’s emerging leaders: the “NextGen” contingent.

NADA has a legislative conference each year dubbed, appropriately, the “Legislative Conference.” It is represented by a “Who’s Who” of the NADA: the board of directors, state association presidents, influential dealers, and the association’s executive team.

But this year came with a twist.

For the first time in the conference’s history, NADA changed the event’s format to specifically include the NextGen group – the emerging leaders in automotive retail. Since this was truly a special occasion, and because I was fortunate enough to attend, I want to share my memorable three-day experience with others in the industry.

Background…

The inaugural NextGen event was named the “House of Cars,” a pun on Kevin Spacey’s hit TV show House of Cards. While it tied in with the legislative conference, it also had its own NextGen agenda that included a NextGen-only cocktail party, tour of the city, half day of presentations, another cocktail party, and a day on Capitol Hill. The NextGen attendees were dealership managers/dealers from ages 21-40 who are, or will likely be, dealer principals. This included multi-generation family dealers and people new to the industry – like me. Each NextGen attendee was invited and chosen by their particular state/metro association’s president in July.

Day 1 – Like any automotive conference, it began with a cocktail party…

NADA kicked off the event with a cocktail party at a law firm’s outdoor patio that overlooked the White House; this was the initial meet-and-greet for many of the attendees. It was here  where I met many of the future leaders of

While not the entire group, many NextGen reps participated in the White House photo. 9/8/14.

automotive retail. The attendees included NextGen members from varying dealer groups of multiple sizes, ranging from a single point to groups with 20-plus stores, and with very diverse backgrounds. I met accountants, lawyers, financiers, video game programmers, and even a TV talk show host – all individuals who’d left promising careers to work in automotive retail. After the cocktail party, NADA led the group on an interactive tour of the city.

Day 2 – Lots of meetings…

Peter Welch, NADA’s President, began the day with a talk that resonated well with the group. While the NADA Convention is the industry’s main event of the year, the legislative conference is the most important event of the year. Mr. Welch explained that the tentacles challenging

The group participated in mock Congressional meetings with NADA staff,

and threatening our industry are controlled from Washington, and the importance of dealer participation to thwart these threats cannot be stopped by NADA alone. He went on to say that NextGen participation, now and in the future, is critical to our industry’s continued success – in protecting both the consumer and the dealer.

We also heard from Patrick Calpin, NADA’s Director of Grassroots Advocacy. In other words, Mr. Calpin is a lobbyist for NADA who specifically works with dealers. In addition to an impressive background that includes working for American Honda, Mr. Calpin conceived the idea of “Cash for Clunkers” after learning about a similar program in Germany.

Laura Perrotta, NADA’s Senior Director of Legislative Affairs, also addressed the audience. Ms. Perotta is a very powerful lobbyist who serves on the board of the American Society of Association Executives – the lobbyist community’s industry association.

The last key speaker of the day was Erin Fernandez. Ms. Fernandez’s official NADA job title is DEAC Coordinator. She was responsible for arranging the entire “House of Cars” NextGen event. Ms. Fernandez, Ms. Perrotta, Mr. Calpin, and others presented the NextGen group with a crash course in lobbying, as well as a debriefing on NADA’s key legislative issues.

The NextGen’s key lobbying initiative was the passing of HR5403, a bill in the House of Representatives that amends the Consumer Financial Protection Bureau’s guidance to be more transparent. NADA’s experienced lobbying team prepped us on the importance of getting this bill passed, including the benefits for consumers and dealers. After our lesson, the group participated in mock Congressional meetings with NADA staff, in preparation for our actual congressional meetings the next day.

Day 3 – The big day in Congress…

I don’t think anyone can fully understand the concept of “walking the halls of Congress” without actually doing it. There are literally hundreds of congressional offices spread across various buildings, and in seemingly no particular order. 

Congressman Paul Tonko & Representatives of NYSADA and ENYCAR. 9/10/14.

As we headed toward Capitol Hill, NextGen attendees split up and joined the leaders of their respective state/metro associations.  As a New Yorker, I joined the experienced team of the New York State Auto Dealers Association (NYSADA) and the Eastern New York Coalition of Automotive Retailers (ENYCAR). Our agenda included meetings with seven congressmen and one senator.

Instead of a meeting play-by-play, I’ll sum up my congressional experience. Meeting with a lawmaker is generally sitting on a couch in the congressperson’s office (or at a conference table, in a senator’s case), and “chewing the fat.” Legislators are interested in the perspectives of constituents and want to know how they can help. In nearly all of our

Bruce Bendell, owner of Major World, chats with Senator Charles Schumer in the Senator's Conference Room. 9/10/14.

meetings, lawmakers from both sides agreed with our points. Despite the partisanship and negative comments we often read about, meeting with lawmakers on both sides, at least in my case, proved cordial and enjoyable.

Whatever the outcome of HR5403, I was able to experience firsthand, the freedom of the lawmaking process that makes our country so great. I did my part to improve automotive retail. It was a very rewarding experience.

Takeaways…

Boo, Kevin Spacey!  As disappointing as it may seem, lobbying is nothing like House of Cards. At least from what I experienced, it is simply sharing the good, the bad, and the ugly of

NADA Vice-Chairman Bill Fox, Senator Charles Schumer, and ENYCAR Chairman George Whalen pose in the Senate Office Building with New York Dealers. 9/10/14.

current legislation (or lack thereof) with politicians and their staff. Essentially, all politicians will listen to a lobbyist’s issues and, quite often, they agree. But for a politician to put his or her signature on legislation, the legislation generally needs to pass a serious vetting process. Thus, effective lobbying requires honest and favorable relationships in Washington so that politicians will consider your legislation for approval, but also provide you with candid feedback when they don’t approve.

NADA wants to engage more NextGen, and now is the time to do it….

The U.S. automotive marketplace is the safest, most efficient, and most transparent in the world. But, though it’s still the best, our industry must continue to evolve with the changing consumer. With many changes on the horizon, now is the ideal time for a new breed of talent to collaborate on the industry’s course in the years ahead.

With more NextGen participation, NADA aims to benefit from the diverse and progressive insights that will shape our industry’s future. To this end, NADA is actively seeking greater NextGen participation, and here is why you should be involved :

• Do your part to protect the dealer franchise body…
  There is a surge of both misinformation and disinformation being spread about automotive retailers. Do your part to spread the truth: auto retailers protect consumers, keep prices competitive, and are major economic engines powering our local communities.
• The marketplace is changing…
  Transparency… Millennials… Customer experience — the way we sell and service cars is changing at a faster rate than ever before. Be prepared for changes that will affect your greatest financial asset.
• Meet other dealers…
  Network and mingle with the industry’s brightest minds. Learn new ways to improve your store or to just make friends along the way. Talk with dealers who originally chose other career paths, but ultimately landed in auto retail.
• And finally, don’t forget the cocktail parties!

If you’re interested in NADA’s NextGen efforts, please e-mail Erin Fernandez (efernandez@nada.org) with your contact information and she’ll be happy to share more information with you.

See you at the San Francisco Convention!

TRUECAR Co-Founder publishes book: The “quintessential guide to BD” and reveals details on CARFAX’s business practices…

What is business development? Ask this question to almost any executive, and you’ll receive varying, ambiguous, and elaborated answers that border complete “gobbledygook.” Even in B-school academia, the definition of “business development” is equally inconsistent and confusing. However, finally, a sensible definition of business development is explained in a new book dubbed The Sumo Advantage by Bernie Brenner(www.linkedin.com/in/berniebrenner), a co-founder of TrueCar, and a well-known automotive marketing veteran.

Bernie explains business development(“BD”) as a tool to harness the power of a “Sumo” to springboard another firm’s growth – that is, strategically partnering with an existing industry heavyweight to achieve mutual growth. He explains, in extensive detail, the roadmap to setting up a BD initiative and what to expect along the way. Bernie identifies forces of resistance, both internal and external, and the tried and tested methods to overcome virtually any issue. Bernie creates a platform, in a sensible and understandable fashion, for his readers to design, implement, manage, and ultimately benefit in sales and valuation from a business development methodology.

However, The Sumo Advantage isn’t just a lexicon for business development; it’s also an entertaining journey through Bernie’s experiences in the automotive industry. Bernie explains that his BD strategies launched and secured TrueCar’s initial growth, but also “saved TrueCar” from the challenges in 2011(Article: http://www.autonews.com/article/20130506/RETAIL07/305069990/affinity-sales-saved-the-day-for-truecar). Similarly, Bernie also explains that CARFAX’s legally contested and exclusive agreements with Cars.com/AutoTrader, actually began as BD initiatives, that were largely responsible for CARFAX’s rapid growth (Article: http://www.autonews.com/article/20130523/RETAIL04/130529939/experian-vehicle-history-reports-to-appear-in-autotrader-com).

In the foreword, Chip Perry, the former CEO of AutoTrader, distinctly describes The Sumo Advantage as the “quintessential guide to business development.” Many other “captains of our industry” also make an appearance, allowing readers to gain inside perspective on some of the elite inner circles of the automotive industry. Whether it’s the details on TrueCar’s affinity strategies, an explanation of CARFAX’s business practices, or even Mike Jackson’s reflection on the economic turmoil of 2008, readers of The Sumo Advantage should expect to be intrigued by Bernie’s firsthand and real-life account of the BD deals that led to the success and growth of the well-known heavyweights in our industry.

The Sumo Advantage is practical, insightful, strategic, and entertaining. However, it’s also an industry agnostic guide to achieving otherwise unattainable growth. Hopefully, you’ll enjoy Bernie’s book as much as I did.

Amazon.com Link:

http://www.amazon.com/The-Sumo-Advantage-Development-Heavyweights/dp/0986046000