I’m sure that every management team sits down on occasion to discuss ways to improve dealership operations. Whether that improvement has to do with sales goals, employee satisfaction, or simply lot appearance, typically what happens is that everyone is gung-ho about it and it kicks off great. Then, slowly that momentum dies and all of a sudden nobody is making an effort anymore. Sound familiar?

How many times has your dealership implemented a new technology, lead source, or any new initiative just to find that they don’t get used, or seem to fail? Sometimes we find ourselves scratching our heads in wonder. Perhaps it’s not the technology, but rather our team members aren’t following a process or using it improperly. It’s very easy to dismiss a new technology or process as ineffective simply because employees tell you it’s not working. In my experience, most of the time it’s not the technology or the newly launched process that’s the problem. The problem is usually that our people aren’t using it properly, are not practicing consistency or have just plain lost the vision of why it was implemented in the first place. That’s why it’s important to have a champion. And, it’s not always about the money. Sometimes simply the opportunity to be recognized as a potential leader who is passionate about a new initiative is reward enough for an employee to champion the initiative.

So, how do you go about finding or making a champion? Once you make the executive decision that this new technology or process is a path you want to go down, bring your team into the conversation and see if they share your vision. If they do, ask THEM for a champion. See who wants to and is willing to be held accountable and lead the initiative. Ask them to create a list of suggestions for winning, and take the time to share your experience and support. Give that champion extra attention - it will be well worth it. When the team sees management pat that person/champion on the back, when that person is getting all the recognition and accolades, and perhaps even a promotion, other champions will all of a sudden start coming out of the woodwork. And that is a win-win for the dealership, for management and for the employees.

There is no limit to the areas in the dealership where this can work. Champions can be lot attendants, in the service lane, accounting, or even in the showroom or customer lounge. The initiative they are in charge of can be something as simple as ensuring that the showroom stays clean and organized. You could even make someone a champion for any non-profits your dealership is involved in.

When you find a champion that is willing to be held accountable to monitor, train and assist other employees, and/or take charge of the initiative themselves, success rates skyrocket. I’ve seen it at my stores when a champion gets promoted and a replacement champion isn’t put in place. Success rates plummeted.

Let’s face it -- great employees/teams are the very core/foundation of our ultimate success. The need to train and nurture the staff you have into a group of people that thrives in their work environment; are engaged, care about you and are invested in your dealership and share a common vision, has never been more important. Discover your champions today and watch as your initiatives explode with success. I love this industry!

I’m sure that every management team sits down on occasion to discuss ways to improve dealership operations. Whether that improvement has to do with sales goals, employee satisfaction, or simply lot appearance, typically what happens is that everyone is gung-ho about it and it kicks off great. Then, slowly that momentum dies and all of a sudden nobody is making an effort anymore. Sound familiar?

How many times has your dealership implemented a new technology, lead source, or any new initiative just to find that they don’t get used, or seem to fail? Sometimes we find ourselves scratching our heads in wonder. Perhaps it’s not the technology, but rather our team members aren’t following a process or using it improperly. It’s very easy to dismiss a new technology or process as ineffective simply because employees tell you it’s not working. In my experience, most of the time it’s not the technology or the newly launched process that’s the problem. The problem is usually that our people aren’t using it properly, are not practicing consistency or have just plain lost the vision of why it was implemented in the first place. That’s why it’s important to have a champion. And, it’s not always about the money. Sometimes simply the opportunity to be recognized as a potential leader who is passionate about a new initiative is reward enough for an employee to champion the initiative.

So, how do you go about finding or making a champion? Once you make the executive decision that this new technology or process is a path you want to go down, bring your team into the conversation and see if they share your vision. If they do, ask THEM for a champion. See who wants to and is willing to be held accountable and lead the initiative. Ask them to create a list of suggestions for winning, and take the time to share your experience and support. Give that champion extra attention - it will be well worth it. When the team sees management pat that person/champion on the back, when that person is getting all the recognition and accolades, and perhaps even a promotion, other champions will all of a sudden start coming out of the woodwork. And that is a win-win for the dealership, for management and for the employees.

There is no limit to the areas in the dealership where this can work. Champions can be lot attendants, in the service lane, accounting, or even in the showroom or customer lounge. The initiative they are in charge of can be something as simple as ensuring that the showroom stays clean and organized. You could even make someone a champion for any non-profits your dealership is involved in.

When you find a champion that is willing to be held accountable to monitor, train and assist other employees, and/or take charge of the initiative themselves, success rates skyrocket. I’ve seen it at my stores when a champion gets promoted and a replacement champion isn’t put in place. Success rates plummeted.

Let’s face it -- great employees/teams are the very core/foundation of our ultimate success. The need to train and nurture the staff you have into a group of people that thrives in their work environment; are engaged, care about you and are invested in your dealership and share a common vision, has never been more important. Discover your champions today and watch as your initiatives explode with success. I love this industry!

I’ve talked plenty of times about disrupters entering our industry in an attempt to take sales and market share away from dealers. The Carvanas, Beepis and Vrooms dangle carrots of lower prices and better buying experiences and tempt consumers to try a new way of purchasing their next vehicle. Now, it appears, at least one manufacturer has taken notice.

A recent article in AutoRemarketing reported that GM is set to launch a used car online buying experience for consumers – tagged the “Factory Pre-Owned Collection.” The manufacturer intends to offer as many as 30,000 vehicles for sale -- all of which will have under 37,000 miles and include extended warranties. Consumers will be able to go to the manufacturer’s website, browse inventory, select a vehicle and have it delivered to the GM dealership of their choice. They are also extending a 3 day/150-mile exchange program for cars purchased through this medium. It’s unclear as of now how the dealerships will be compensated for these sales.

It’s obvious that this move is in direct response to consumer demand for an easier car-buying experience. It would seem pretty safe to speculate that manufacturers have been watching the disrupters and have decided to enter the online buying space -- And, perhaps, beat them at their own game. The mere fact that GM has the ability to maintain an inventory of 30,000 vehicles for sale; which it stated are lease, daily rental and company vehicles; begs the question of how their dealerships will replenish used vehicle inventory if GM makes the decision to keep them all.

It’s my guess that it’s only a matter of time before other manufacturers enter this space essentially book ending dealerships. On one side you will have the Carvanas in the online space selling direct to consumers. On the other side you’ll have manufacturers doing the same thing. Unless dealerships make the decision to join this movement towards an online buying experience, they may find themselves quickly becoming delivery centers for their manufacturers.

I am not blaming the manufacturers. I have seen firsthand that many dealers are not interested in delivering an online buying solution for the customer. They are making profits and simply don’t see the threat….yet. We as dealers simply must understand that things have already changed -- and for the better. This is what I am calling the “Customer Automotive Experience Revolution.” Customers now have the same choices and power in the automotive buying process that they have long had in all their other shopping verticals.

The technology is there, ready and waiting for dealers to embrace. There isn’t an entry barrier for dealers into this space – other than their own thought processes. The fact is that they can offer an online car buying experience that consumers demand while still maintaining profits and even increasing back-end profit as well.

But think about it for a minute -- When a customer buys a vehicle from a Carvana, or even the manufacturer, who do you think they credit for the great experience? You guessed it. Carvana or the manufacturer. How can dealerships expect to begin a relationship with a customer and nurture them into a loyal service, and perhaps future repeat customer, if the customer’s perception is that the dealership had absolutely nothing to do with the sale? What does this say about the dealership in a time where we as dealers must build trust with our customers and shed that old 1980 car dogma?

Don’t find yourself stuck between a rock and a hard place -- even if the rock is perhaps just a pebble for the moment. Realize that consumers are demanding an easier car buying transaction and that your dealership has the ability to give them what they want. They certainly have companies willing to give them the experience. And, now at least one manufacturer is willing to as well. If you keep procrastinating, you may find your dealership transformed into a test drive and delivery center.

This change is good! Imagine being a customer, if you had all these choices to shop and buy, which would you take? How about your neighbors? If your dealership offered them an escape from the friction of the showroom along with all the advantages that only a dealer can offer, I think I know the answer!

I’ve talked plenty of times about disrupters entering our industry in an attempt to take sales and market share away from dealers. The Carvanas, Beepis and Vrooms dangle carrots of lower prices and better buying experiences and tempt consumers to try a new way of purchasing their next vehicle. Now, it appears, at least one manufacturer has taken notice.

A recent article in AutoRemarketing reported that GM is set to launch a used car online buying experience for consumers – tagged the “Factory Pre-Owned Collection.” The manufacturer intends to offer as many as 30,000 vehicles for sale -- all of which will have under 37,000 miles and include extended warranties. Consumers will be able to go to the manufacturer’s website, browse inventory, select a vehicle and have it delivered to the GM dealership of their choice. They are also extending a 3 day/150-mile exchange program for cars purchased through this medium. It’s unclear as of now how the dealerships will be compensated for these sales.

It’s obvious that this move is in direct response to consumer demand for an easier car-buying experience. It would seem pretty safe to speculate that manufacturers have been watching the disrupters and have decided to enter the online buying space -- And, perhaps, beat them at their own game. The mere fact that GM has the ability to maintain an inventory of 30,000 vehicles for sale; which it stated are lease, daily rental and company vehicles; begs the question of how their dealerships will replenish used vehicle inventory if GM makes the decision to keep them all.

It’s my guess that it’s only a matter of time before other manufacturers enter this space essentially book ending dealerships. On one side you will have the Carvanas in the online space selling direct to consumers. On the other side you’ll have manufacturers doing the same thing. Unless dealerships make the decision to join this movement towards an online buying experience, they may find themselves quickly becoming delivery centers for their manufacturers.

I am not blaming the manufacturers. I have seen firsthand that many dealers are not interested in delivering an online buying solution for the customer. They are making profits and simply don’t see the threat….yet. We as dealers simply must understand that things have already changed -- and for the better. This is what I am calling the “Customer Automotive Experience Revolution.” Customers now have the same choices and power in the automotive buying process that they have long had in all their other shopping verticals.

The technology is there, ready and waiting for dealers to embrace. There isn’t an entry barrier for dealers into this space – other than their own thought processes. The fact is that they can offer an online car buying experience that consumers demand while still maintaining profits and even increasing back-end profit as well.

But think about it for a minute -- When a customer buys a vehicle from a Carvana, or even the manufacturer, who do you think they credit for the great experience? You guessed it. Carvana or the manufacturer. How can dealerships expect to begin a relationship with a customer and nurture them into a loyal service, and perhaps future repeat customer, if the customer’s perception is that the dealership had absolutely nothing to do with the sale? What does this say about the dealership in a time where we as dealers must build trust with our customers and shed that old 1980 car dogma?

Don’t find yourself stuck between a rock and a hard place -- even if the rock is perhaps just a pebble for the moment. Realize that consumers are demanding an easier car buying transaction and that your dealership has the ability to give them what they want. They certainly have companies willing to give them the experience. And, now at least one manufacturer is willing to as well. If you keep procrastinating, you may find your dealership transformed into a test drive and delivery center.

This change is good! Imagine being a customer, if you had all these choices to shop and buy, which would you take? How about your neighbors? If your dealership offered them an escape from the friction of the showroom along with all the advantages that only a dealer can offer, I think I know the answer!

We all love this industry and what it can, and has done, for our families, friends, country and our local communities. But, I fear that if we do not stop and take a serious look at where we are as far as operations and culture in our stores today, our future generations may be in jeopardy.

With the massive shift in the way businesses are being built today, it is obvious that we have arrived at a tipping point. This is exciting and screams “new opportunity!” for automotive retail, (as seen by Wall Street jumping in with both feet). Some of us have been satisfied for far too long with the “old school” way of operations in our stores. While other businesses and industries have evolved through continued education; commitment to consistent improvement; and by being held responsible for stock prices and the evolution of conscious capitalism, which is creating sustainable businesses out of brick and mortar, instead of straw. That may be harsh, but I think as we start 2016, we as executive managers may need to take a good look in the mirror.

There are new modern ways of operating that solve the pain points we have lived with for decades and decades. These new modern ways of doing business can create solid, sustainable and profitable businesses that exceed the demands of today’s consumer and employees. The facts today are different than they were just 5 years ago. If we do not solve the consumer and employee pain points, someone else will.

The tallest building must be built on the strongest foundation. I believe that the very foundation of any business starts with the culture. Culture is a key component in business and has an impact on its strategic direction. Culture influences management, decisions and all business functions -- from accounting to production. A business culture will encompass an organization’s values, visions, working style, beliefs and habits.

Maybe we should all start from scratch and have a culture meeting with our executives. Honestly define and write down the culture you have organically created at your dealership today. Then write down a vision for an improved culture and the benefits that culture will bring. Look at other business platforms that are succeeding, at competition that is breaking new ground and at pain points such as ‘turn over,’ and more. I am a believer that money will not fix your turn over – culture will.

Our industry continues to operate on the retail side as it has for decades. Unlike many other industries, we have positions with incredible income levels available to people with minimal education, or experience requirements. Our education level is one of the lowest in the country -- while our pay is one of the highest. Maybe in today’s environment, we need to start by looking at the most important capital we invest in - our human capital. Maybe we should demand continuous education from our executives, middle management and staff in general, and build a culture that attracts a wider range of skill sets.

The single greatest asset you have in your dealership is your people (human capital). The culture will dictate how they perform and the type of experience they will provide for your customers. Your employees (team members) can work from a place of passion, heart and pride, instead of doing just what they need to so as to avoid getting fired. They want to LOVE coming to work. They desire a workplace where their voice is heard and where they can be proud and part of a team that is moving forward at all times. Your people (human capital) will elevate and inspire every aspect of your business.

OK, so we agree it may be healthy to take a good look at our culture, now how do we get started?

Get educated, read books on business success and great CEO’s. There is a mountain of great inspiration out there. Write notes as you read these books. Take a sentence that moves you and throw it in your notes. At the end of a book or 2, revisit your notes, you may be surprised how well it is coming together.

I think you probably do realize how important culture is, and just how important it is to hire the right coachable executives and middle management. Those that are committed and motivated by culture, ethics, integrity and then by money. These people will be inspired to be a greater part of the solution that encourages new thought. I always have believed that people in general will work harder towards a ribbon or a purpose than a paycheck.

With a positive and conscious culture flowing through your store, you will see more productive, energetic and happier employees. And, let’s not forget, happier customers. In the words of Richard Branson, “If you look after your staff, they will look after your customers.”

I believe this may be one of the most important thing you can do to ensure the health and growth of your dealership in 2016 and beyond. I also know that once you have championed this new culture, you will see more than just financial rewards. I wish you all the best of success!

We all love this industry and what it can, and has done, for our families, friends, country and our local communities. But, I fear that if we do not stop and take a serious look at where we are as far as operations and culture in our stores today, our future generations may be in jeopardy.

With the massive shift in the way businesses are being built today, it is obvious that we have arrived at a tipping point. This is exciting and screams “new opportunity!” for automotive retail, (as seen by Wall Street jumping in with both feet). Some of us have been satisfied for far too long with the “old school” way of operations in our stores. While other businesses and industries have evolved through continued education; commitment to consistent improvement; and by being held responsible for stock prices and the evolution of conscious capitalism, which is creating sustainable businesses out of brick and mortar, instead of straw. That may be harsh, but I think as we start 2016, we as executive managers may need to take a good look in the mirror.

There are new modern ways of operating that solve the pain points we have lived with for decades and decades. These new modern ways of doing business can create solid, sustainable and profitable businesses that exceed the demands of today’s consumer and employees. The facts today are different than they were just 5 years ago. If we do not solve the consumer and employee pain points, someone else will.

The tallest building must be built on the strongest foundation. I believe that the very foundation of any business starts with the culture. Culture is a key component in business and has an impact on its strategic direction. Culture influences management, decisions and all business functions -- from accounting to production. A business culture will encompass an organization’s values, visions, working style, beliefs and habits.

Maybe we should all start from scratch and have a culture meeting with our executives. Honestly define and write down the culture you have organically created at your dealership today. Then write down a vision for an improved culture and the benefits that culture will bring. Look at other business platforms that are succeeding, at competition that is breaking new ground and at pain points such as ‘turn over,’ and more. I am a believer that money will not fix your turn over – culture will.

Our industry continues to operate on the retail side as it has for decades. Unlike many other industries, we have positions with incredible income levels available to people with minimal education, or experience requirements. Our education level is one of the lowest in the country -- while our pay is one of the highest. Maybe in today’s environment, we need to start by looking at the most important capital we invest in - our human capital. Maybe we should demand continuous education from our executives, middle management and staff in general, and build a culture that attracts a wider range of skill sets.

The single greatest asset you have in your dealership is your people (human capital). The culture will dictate how they perform and the type of experience they will provide for your customers. Your employees (team members) can work from a place of passion, heart and pride, instead of doing just what they need to so as to avoid getting fired. They want to LOVE coming to work. They desire a workplace where their voice is heard and where they can be proud and part of a team that is moving forward at all times. Your people (human capital) will elevate and inspire every aspect of your business.

OK, so we agree it may be healthy to take a good look at our culture, now how do we get started?

Get educated, read books on business success and great CEO’s. There is a mountain of great inspiration out there. Write notes as you read these books. Take a sentence that moves you and throw it in your notes. At the end of a book or 2, revisit your notes, you may be surprised how well it is coming together.

I think you probably do realize how important culture is, and just how important it is to hire the right coachable executives and middle management. Those that are committed and motivated by culture, ethics, integrity and then by money. These people will be inspired to be a greater part of the solution that encourages new thought. I always have believed that people in general will work harder towards a ribbon or a purpose than a paycheck.

With a positive and conscious culture flowing through your store, you will see more productive, energetic and happier employees. And, let’s not forget, happier customers. In the words of Richard Branson, “If you look after your staff, they will look after your customers.”

I believe this may be one of the most important thing you can do to ensure the health and growth of your dealership in 2016 and beyond. I also know that once you have championed this new culture, you will see more than just financial rewards. I wish you all the best of success!

I believe that, as an automotive community, we intuitively know that we need to change. The sales to consumer model is outdated – our fault for not demanding of ourselves consistent improvement in the consumer experience arena. Consumers are demanding more and Wall Street has taken notice. Backed by hundreds of millions of dollars, companies are quickly rising that threaten to take market share from us. The longer we allow them to thrive and establish their brand and message, the harder it will be for us to retake the market. These disruptors – the Beepis, Vrooms, Carvanas and others – are a threat to our core business model. Right now, they may seem unthreatening, as we continue to go about business as usual. But that would be very wrong.

Take for instance Vroom’s recent acquisition of Texas Auto Direct, one of the earliest and most successful retailers to embrace online sales (Largest independent dealer in U.S.) and offer this method of buying to consumers. They’ve thrived for years, happily shipping vehicles all across our country. Do you think they could do so if it weren’t extremely profitable? As dealers, we’ve long had the ability to facilitate a quasi-online transaction. It tends to jump back and forth between e-mails, online credit applications, documents sent via Fed-Ex, notarized, and vehicles then shipped. Today, technology exists that allows us to accomplish this with far greater simplicity. It also enables a better customer experience. We as dealers must step out of our (now) profitable comfort zones and stretch our minds. We must adopt, or invent new ways to attract customers. We must think like the customers!

It’s time to step back and learn from these disruptors threatening our livelihoods. They aren’t doing anything hugely different from what you can do in your dealership. We have the infrastructure, the inventories and our manufacturers backing us. No matter what anyone may say, customers still want to touch and feel a “sea” of vehicle choices before signing on the dotted line, especially used vehicles. The simplest way to fight back and watch these companies disappear is to replicate their customer experience online – with the extra value that only a dealership can offer. We need to identify the pain points customers feel exist in the process and take steps to change our processes to eliminate these. By taking a page from these disruptor’s playbooks, we can learn to increase market share, improve customer relations and evolve our teams.

The future of our business rests upon our willingness to meet our customer’s demands without sacrificing margins. We can accomplish this by simplifying our processes – both online and in our showrooms. And, by relieving our customer’s pain points in the vehicle purchasing process through the use of technology. We all know where the jams occur in our processes – customers that aren’t getting prompt service because all available salespeople are sitting with customers. Some of these salespeople are merely babysitting, while their customers await financing. We see a backlog of customers waiting for figures while sales managers try to desk 5 deals at the same time, while appraising 2 trades. Our internet leads go unanswered as the Internet managers are all busy with appointments – and these are ripe for the picking by the competition. This list goes on and on…… Every dealership will have its own pain points and areas that could be improved. You know which exist in your dealership. Yes, it will take a fresh commitment that will take a champion to lead this initiative in your store. It’s hard when we are (currently) profitable. But, remember all those stories – Blockbuster stock was at one time $25 a share and they were smiling and golfing and resting on their current success.

All of these problems can be remedied through the use of technology and a committed culture. And through the creation of a champion in your store who is committed to consistent improvement -- without sacrificing gross profits. Adopting new technology and processes can be quite intimidating. Believe me. I know. I’ve been there. After 35 years in automotive retail and 30 of those years in management / GM, I’ve made those decisions, despite the fears. But, I actually found that there was nothing to fear after all – actually quite the opposite.

Take a step back and look through the eyes of your customer. Envision your dealership and the customer experience you want! Then, make a commitment to adopt technology that offers your customers a better buying experience and name a champion or a team of champions that will lead this new initiative. Let’s disrupt the disruptors. Thoughts?

I believe that, as an automotive community, we intuitively know that we need to change. The sales to consumer model is outdated – our fault for not demanding of ourselves consistent improvement in the consumer experience arena. Consumers are demanding more and Wall Street has taken notice. Backed by hundreds of millions of dollars, companies are quickly rising that threaten to take market share from us. The longer we allow them to thrive and establish their brand and message, the harder it will be for us to retake the market. These disruptors – the Beepis, Vrooms, Carvanas and others – are a threat to our core business model. Right now, they may seem unthreatening, as we continue to go about business as usual. But that would be very wrong.

Take for instance Vroom’s recent acquisition of Texas Auto Direct, one of the earliest and most successful retailers to embrace online sales (Largest independent dealer in U.S.) and offer this method of buying to consumers. They’ve thrived for years, happily shipping vehicles all across our country. Do you think they could do so if it weren’t extremely profitable? As dealers, we’ve long had the ability to facilitate a quasi-online transaction. It tends to jump back and forth between e-mails, online credit applications, documents sent via Fed-Ex, notarized, and vehicles then shipped. Today, technology exists that allows us to accomplish this with far greater simplicity. It also enables a better customer experience. We as dealers must step out of our (now) profitable comfort zones and stretch our minds. We must adopt, or invent new ways to attract customers. We must think like the customers!

It’s time to step back and learn from these disruptors threatening our livelihoods. They aren’t doing anything hugely different from what you can do in your dealership. We have the infrastructure, the inventories and our manufacturers backing us. No matter what anyone may say, customers still want to touch and feel a “sea” of vehicle choices before signing on the dotted line, especially used vehicles. The simplest way to fight back and watch these companies disappear is to replicate their customer experience online – with the extra value that only a dealership can offer. We need to identify the pain points customers feel exist in the process and take steps to change our processes to eliminate these. By taking a page from these disruptor’s playbooks, we can learn to increase market share, improve customer relations and evolve our teams.

The future of our business rests upon our willingness to meet our customer’s demands without sacrificing margins. We can accomplish this by simplifying our processes – both online and in our showrooms. And, by relieving our customer’s pain points in the vehicle purchasing process through the use of technology. We all know where the jams occur in our processes – customers that aren’t getting prompt service because all available salespeople are sitting with customers. Some of these salespeople are merely babysitting, while their customers await financing. We see a backlog of customers waiting for figures while sales managers try to desk 5 deals at the same time, while appraising 2 trades. Our internet leads go unanswered as the Internet managers are all busy with appointments – and these are ripe for the picking by the competition. This list goes on and on…… Every dealership will have its own pain points and areas that could be improved. You know which exist in your dealership. Yes, it will take a fresh commitment that will take a champion to lead this initiative in your store. It’s hard when we are (currently) profitable. But, remember all those stories – Blockbuster stock was at one time $25 a share and they were smiling and golfing and resting on their current success.

All of these problems can be remedied through the use of technology and a committed culture. And through the creation of a champion in your store who is committed to consistent improvement -- without sacrificing gross profits. Adopting new technology and processes can be quite intimidating. Believe me. I know. I’ve been there. After 35 years in automotive retail and 30 of those years in management / GM, I’ve made those decisions, despite the fears. But, I actually found that there was nothing to fear after all – actually quite the opposite.

Take a step back and look through the eyes of your customer. Envision your dealership and the customer experience you want! Then, make a commitment to adopt technology that offers your customers a better buying experience and name a champion or a team of champions that will lead this new initiative. Let’s disrupt the disruptors. Thoughts?

There’s little doubt that the experience provided by auto dealerships in the past has jaded consumers into a stereotype and perception that isn’t necessarily accurate any longer, yet continues to persist. Because of this perception, companies such as Beepi, Carvana and more are creeping into the automotive space and threatening to snatch sales away from dealerships. (how? by providing customers the ability to purchase their car online) These companies pose a true threat as they are luring our customers away – and make no mistake, these are our customers – through messages of convenience and an excellent customer buying experience. Carvana was just named #5 on Forbes list of America’s Most Promising Companies. The hundreds of millions invested in these companies show that Wall Street believes their business models are viable.

Online deal creation is simply a response to consumer demand. Consumers no longer wish to spend hours at a dealership in confrontational situations with salespeople and sales managers hiding behind one-way glass. These consumers have more knowledge at their fingertips than they have ever had in history and that transparency is only going to grow. We have countless studies that prove that only 1.5% of consumers expect to be satisfied with their showroom experience when buying a vehicle, and that is the truth - not a manipulated CSI report where the sales person begs for 5's and Y's.  This is a failure on our part and the catalyst for these online auto sales companies that are creeping into our space, taking our sales and resulting service and parts business.

It wasn’t that long ago that dealers didn’t think they needed a website - we all know how that worked out. As consumers have become more conditioned to shopping online for everything from luxury items to toilet paper, our industry has been the last to embrace this trend. If dealerships don’t wake up and understand that consumers will buy things the way they want to buy them, we’ll only be helping these other companies gain ground. There is no reason for this to happen. The technology exists today to facilitate a similar (and superior) online buying experience as the disrupters entering our market. Embrace technology to provide the same type of buying experience as these start-up competitors and you could literally stall their momentum. Dealers will always have the advantage with a physical inventory. And, consumers want to touch and feel a vehicle prior to purchasing it. Frankly, there aren’t many consumers that want to spend tens of thousands of dollars on a vehicle without even seeing it or driving it first.

It seems that the fear dealers have adopted concerning online deal creation stems from a perception that they will sacrifice gross in the deal. I can tell you for a fact that this is simply untrue. At Dick Hannah, we implemented this online deal creation process to massive success and profitability.

I think there needs to be more discussion about the "Evolution of Culture' in our dealerships. The entire staff must get behind this evolution - every dealership needs a champion. Which is it, the whole dealership or a champion? We must study these platforms, learn and adapt to satisfy consumer needs/demands and send these Wall Street companies packing!         

There’s little doubt that the experience provided by auto dealerships in the past has jaded consumers into a stereotype and perception that isn’t necessarily accurate any longer, yet continues to persist. Because of this perception, companies such as Beepi, Carvana and more are creeping into the automotive space and threatening to snatch sales away from dealerships. (how? by providing customers the ability to purchase their car online) These companies pose a true threat as they are luring our customers away – and make no mistake, these are our customers – through messages of convenience and an excellent customer buying experience. Carvana was just named #5 on Forbes list of America’s Most Promising Companies. The hundreds of millions invested in these companies show that Wall Street believes their business models are viable.

Online deal creation is simply a response to consumer demand. Consumers no longer wish to spend hours at a dealership in confrontational situations with salespeople and sales managers hiding behind one-way glass. These consumers have more knowledge at their fingertips than they have ever had in history and that transparency is only going to grow. We have countless studies that prove that only 1.5% of consumers expect to be satisfied with their showroom experience when buying a vehicle, and that is the truth - not a manipulated CSI report where the sales person begs for 5's and Y's.  This is a failure on our part and the catalyst for these online auto sales companies that are creeping into our space, taking our sales and resulting service and parts business.

It wasn’t that long ago that dealers didn’t think they needed a website - we all know how that worked out. As consumers have become more conditioned to shopping online for everything from luxury items to toilet paper, our industry has been the last to embrace this trend. If dealerships don’t wake up and understand that consumers will buy things the way they want to buy them, we’ll only be helping these other companies gain ground. There is no reason for this to happen. The technology exists today to facilitate a similar (and superior) online buying experience as the disrupters entering our market. Embrace technology to provide the same type of buying experience as these start-up competitors and you could literally stall their momentum. Dealers will always have the advantage with a physical inventory. And, consumers want to touch and feel a vehicle prior to purchasing it. Frankly, there aren’t many consumers that want to spend tens of thousands of dollars on a vehicle without even seeing it or driving it first.

It seems that the fear dealers have adopted concerning online deal creation stems from a perception that they will sacrifice gross in the deal. I can tell you for a fact that this is simply untrue. At Dick Hannah, we implemented this online deal creation process to massive success and profitability.

I think there needs to be more discussion about the "Evolution of Culture' in our dealerships. The entire staff must get behind this evolution - every dealership needs a champion. Which is it, the whole dealership or a champion? We must study these platforms, learn and adapt to satisfy consumer needs/demands and send these Wall Street companies packing!