There are three types of people in our industry; those who are drawn to change, those who hide from it, and those who pull out their big guns to protect the way things were. I have never had a problem determining which side of the fence a person stands on, as I am never shy about sharing my visions for the future.   

When discussing the future of the automotive business I often use the analogy of when the Finance Department first entered the dealership. Prior to this, the concept of removing the salesperson from the deal was preposterous. It would be perceived as a disaster if the customer was handed off to someone else, let alone someone in another office. Today, a dealership without a Finance Department would seem ludicrous. The potential profit loss would be monumental, right? Maybe right now, but again, the tides are a-turning and what seems crazy today may be commonplace tomorrow. Often, the best ideas start out sounding the craziest; as Einstein once said, “For an idea that does not first seem insane, there is no hope.”

Since John North Willys sold the first vehicle out of his Elmira, New York, sporting-goods shop in 1901^[1], the car-buying process has fundamentally remained the same. That’s 115 years of an industry operating on the same basic principles that it was founded on. Fortunately, or unfortunately, depending on which side of the fence you subscribe to, that is about to change in 2015. In fact, next year has the potential to be one of the most revolutionary years the auto industry has seen in a very long time.

Some of these changes are small, some are crazier than others, and some have monumental implications, but I believe we will see all of them happen in 2015.

OEM Direct Sale to Consumers

Tesla is doing the dirty work for the other automotive manufacturers right now. The manufacturers won’t admit it, for obvious reasons, but they are all cheering on Elon Musk behind the scenes. While Tesla is fighting to sell their niche vehicles online and in their boutiques, the big OEMs are rapidly approaching a digital wall, preventing them from innovating into the future. Last year General Motors launched their Shop-Click-Drive online platform nationwide,^[2] but it represents the furthest the manufacturers can progress unless Tesla is successful in their manufacturer direct-to-consumer sales battle. Sooner or later, the big OEMs will need to sell direct to consumers too.

Shop-Click-Drive is an online e-commerce-style platform where a customer can select their vehicle, estimate payments and trade-in value, apply for credit, accessorize and schedule a test drive at the location of their choosing^[3]. In its first year of operation, the platform sold over 13,000 vehicles nationwide^[4] with only a third of the dealers participating and little, if any, advertising. 2015 will see a sharp increase in Shop-Click-Drive sales as GM will be forced to advertise heavily to fend off new competitors to the online vehicle sales space. Additionally, GM may even make the program mandatory for all participating dealers, as they have with other online initiatives this past year^[5].

Once fully up and running, Shop-Click-Drive will begin to have a profound impact on the automotive industry. Unfortunately, it still falls short of competing with every other retail sector because you cannot fully buy a vehicle online. Yes, with Shop-Click-Drive you can get close, but ultimately you must finalize everything in the dealership. Imagine your disappointment if you were told you HAD to physically go to a Best Buy to pick up the GoPro you just ordered online.

GM is sure to gain market share until the other OEMs catch up but this is a small Band-Aid on a gaping wound. Customers want everything online, and if you refuse to adapt, someone else will happily provide a better solution. Blockbuster believed heavily in the customer in-store experience^[6], while Netflix realized there was a much better solution online.^[7]

If you want to see a glimpse into the auto industry’s immediate future, we can look at what is happening to the car-rental industry right now. First, car-sharing services started eating up market share, then came Uber to finish the job. This resulted in almost zero growth^[8] for the rental industry in 2013, yet car-sharing memberships increased globally by 53 percent ^[9] and Uber is expected to generate $10 billion in revenue for 2014.^[10]

The emergence of new competition was proof that the car-rental industry’s old business model wasn’t working. It was stagnant, outdated and needed to be overhauled for the needs of the modern online shopper. Fortunately, they decided to change and fight back by both buying out some of their competition^[11] and, more importantly, modernizing their business model. For example, National Car Rental just launched their “Control Enthusiast” campaign this November featuring actor Patrick Warburton. The concept of the commercial is about eliminating their old business model and showcasing the new:

“That’s why this road warrior rents from National. I can bypass the counter, and go straight to my car and I don’t have to talk to any humans unless I want to. And I don’t.”^[12]

The car-rental industry was forced to adapt to the needs of the customer, and so will we. Teasing the customer with an “almost e-commerce” experience may actually do more harm than good. The efficiencies GM is attempting to create with Shop-Click-Drive are all but eliminated when the customer is forced through the same old hoops once they arrive at the dealership. Once you invite customers to the online space, they will expect it to operate like every other online retail space. Otherwise, you are just putting lipstick on a digital pig.  

Where this will take us in 2015 is that one of the major automotive manufacturers will begin a direct-to-consumer e-commerce trial “coincidentally” in one of the states in which Tesla has successfully changed the laws. Instead of stopping before the sale is completed and forcing customers into the store, the trial will allow a customer to 100 percent purchase the vehicle and wait for it to arrive, just like any other online purchase. But what about the test drive, you ask? The percentage of customers declining a test drive before purchase has risen to 17 percent in 2014. ^[13] That would equate to 2.8 million out of a potential 16.4 million^[14] new car sales in the United States in 2015 that would be purchased without a test drive. That is more than enough for an OEM to do an online direct-to-consumer trial.

The OEM will convince their dealer body that this trial is a good idea by counting each online sale towards the targets and bonus plans of the lucky dealer who represents the market area of the online purchaser. The dealer will benefit by getting sale on their books, much like when the manufacturer gives away vehicles in large contests. The closet dealer to the winner gets a complimentary house deal—if their Customer Satisfaction Index is high enough, of course.

We may hear rumblings of this direct-to-consumer trial by summer, as the manufacturers, save for GM, have to act quickly because the dealers themselves have already started trekking down this trail. AutoNation announced in November it would be launching its new online SmartChoice Express platform^[15] backed by a promised $100-million investment. While it is similar to GM’s Shop-Click-Drive platform, it is significant because it serves as an awkward reminder that a dealer group is leading the digital race against the other manufacturers. 

Remember, it will only be a trial, but the results could change our business forever.

Satellite Service Centers Will Fuel Fixed Operations Sales for Dealer Groups

If the sales process is headed online, the need for expanding brick-and-mortar shifts entirely to Fixed Operations. Why, then, would anyone buy or build new dealerships (other than by force) when one can buyout our industry’s oldest enemy: the mom-and-pop repair shops.

As vehicles become more computers than cars, the traditional repair shop is already having trouble handling the new technology. Any vehicle produced today can have as many as 50 to 100 different tiny computers controlling everything from steering to acceleration. ^[16] The modern mechanic needs to know just as much about re-flashing the ECU as she/he needs to know about a cam shaft. So it’s not as much of a takeover as putting this component of the auto industry out of its inevitable misery.

When Starbucks sought to take over the local coffee shop, they did so by oversaturating the market to the point where Starbucks locations were literally across the street from other Starbucks locations^[17]. A large auto group can easily do the same against the small-point competitors in their market.

Ford already started down this road when they began opening their Quick Lane Tire & Auto Centres to compete against the Jiffy Lube and big-box stores. Now they have over 700 locations across the United States^[18] and 69 in Canada^[19] capturing market share.

Expect to see large auto groups buying up and converting existing local shops as a means of handling overflow and, more importantly, increasing market share in geographical areas between or surrounding dealerships. The consumer can receive the same factory-trained technicians, the same loyalty promotions, and the same OEM parts at a shop around the corner, as opposed to driving the extra distance to your main operation. With careful purchasing, a large automotive group could entirely take over the fixed operations in a geographical area overnight.

Added satellite locations can also fuel additional sales opportunities, with additional test-drive starting points, e-commerce parts and accessory sales pick-up locations, and most importantly, more parking. What dealer group wouldn’t want to expand their footprint in a short period of time for a significantly lower cost than buying or building entire dealerships?

The Death of the Salesperson

This is not a new concept and has been the heated topic of many arguments around the auto industry for some time now. The concept is that people will no longer need a salesperson to purchase an automobile and can do everything online. There is some merit to this. In 2012, 10 percent of car buyers opted not to test-drive. ^[20] By the beginning of 2014 that number was up to 17 percent.^[21] While a surprising number, it still leaves 83 percent of the population wanting a test drive.

Eventually there will be no need for a car salesperson, but that time is more than a little ways off. What we will start experiencing in 2015 is something entirely different. The current salesperson is dying off with age, not by lack of interest.

The seasoned salesperson that sells you 16-25 cars a month, with a large portfolio and years of experience, is on her/his way out of our industry. They are just getting older, and many are tired of what the industry has become. Margins and commissions are thinning every day, everything is online first rather than belly-to-belly, and their customer base is buying fewer vehicles at longer intervals. As these veterans start retiring out of our industry, a huge gap is left in their wake, as fresh bodies are nowhere to be found.

The newest generation of workers, Gen Y, has little to no interest in entering a career as a car salesperson. They are highly educated, digitally focused, have zero experience with negotiating and, most importantly, cannot grasp the concept of 100 percent commission. Try asking someone under the age of 35 if they want to work 60+ hours a week for an average of $1,500 a month with no guaranteed pay. ^[22] There is a break in the line, and dealerships are really starting to feel the pinch.

Ask any manager if she/he has enough salespeople on the floor. The unanimous answer is a definite no, followed by, “Why, do you know of anyone?” The situation has reached despairing levels, and seasoned salespeople are taking advantage of it. If you have any previous experience selling cars, it is nearly impossible that you couldn’t walk in the doors of any dealership in the country and get a job on the spot. This is a dangerous situation for management. Job security and loyalty are meaningless, and if the dealership next door is offering an extra 1 percent on the commission plan, your salespeople could be out the door tomorrow. Managers are dealing with a declining level of control on the floor, as discipline becomes next to impossible if every dealer is one-upping each other to take the best sales staff. Suddenly you are more worried about your competitor’s pay plan than the price of the cars in their advertising.

What will become the new trend in 2015 is the “Product Specialist,” replacing the commissioned salesperson. In order to refill the barracks with fresh blood, dealerships will have to adopt a salary and bonus, or all-salary structure. ^[23] The 100 percent commission strategy will either be grandfathered out or removed altogether. It’s not going to be an easy pill to swallow, but there are no alternatives on the horizon. The next generation to fill the ranks of your dealership value opportunity over money and job security. ^[24] They would much rather receive standard pay than a possible range based on their performance, and more importantly value a flexible work-life integration over anything else.^[25]

In 1989, Best Buy modified their pay structure away from commission, a revolutionary move at the time that was scoffed at by their competitors.^[26] The reason for doing so was because their business formula was out of sync with their customers. At the time, the electronics customer had little need for a salesperson and preferred the hassle-free buying experience. The gamble paid off, helping to grow sales from $439 million in 1989 to $2.6 billion in 1993^[27]. Auto dealers have already begun to follow suit, moving to non-commission pay plans already as a means of acquiring a new generation of car salespeople^[28]. Some are even dubbing it the “Best Buy” pay plan, in reference to the company’s very successful shift away from the aggressive salesperson. But these numbers have been small thus far, as the perceived risk is quite high.

The commissioned pay plan isn’t only a problem for attracting talent, it also is viewed negatively by the purchaser as well. Much like Best Buy’s problem in 1989, today’s automotive customer does not like dealing with commissioned salespeople as much as they wouldn’t want to be one. So much so that in a recent Microsoft study on millennials found that more than half said going to a dealership was more painful than going to the dentist. ^[29]

“J.D. Power and Associates agrees. The company has advocated for years that to avoid commission breath, dealerships should pay bigger monthly salaries and less commission. But there have been few takers -- certainly too few to be statistically significant, says Jon Osborn, research director for J.D. Power, of Westlake Village, Calif.”^[30]

So as a dealer, you have a problem at both ends. Attracting top-level sales talent is getting harder and harder, in addition to your CSI dropping because you are putting more pressure on your staff for higher sales and higher gross. It’s a dire situation to be in, but for many, the solution of a non-commission pay plan appears riskier than staying the course. 2015 will spark the beginning of change, where by force or by courage, many dealers will take the Best Buy pay plan leap of faith. Those who keep their heads in the sand will find their sales floor quite empty in the coming months.

Death of the Single Point

It used to be that if you worked in the automotive industry, a viable dream was to one day own your own store. Today, unless you’re Warren Buffett^[31] that likely will never happen. Furthermore, if you did achieve that dream and currently own a single-point operation, or maybe even two or three stores, that dream is also about to roll the credits.

For once, the Canadian market is ahead of the U.S. market in an automotive statistic, with close to 50 percent of vehicles sold in the country coming from automotive groups^[32]. The largest group and the only publicly traded, AutoCanada, literally has been buying locations on a bi-weekly basis^[33].

It’s not all bad news – rumors are rampant on both sides of the border that groups are happily paying two to three times the value of the stores. It makes for an easy decision for the single-point owners. Rather than face increasing competition, smaller margins, increased employment and capital expenditures, they can opt to sell for a gigantic cheque and retire in paradise.

Not to mention increased pressures from the manufacturers to update facilities on increasingly shorter timeframes. Hyundai recently unveiled their new Global Dealership Space Identity a mere four years after 50 percent of its U.S. dealers spent millions to update their facilities to the rooftop cube.^[34] In Hyundai’s defense, they are also spending a monumental amount of money to upgrade their own headquarters in Korea ^[35].

The acquisition of the Van Tuyl Group by Buffett’s Berkshire Group sparked a frenzy of mass acquisition rumors across the industry. Overnight, the “more is more” philosophy was reignited, as the vast majority of dealerships in the United States are currently not part of a dealer group.^[36] With big names like Buffett entering the picture, groups like AutoNation and Asbury will be forced to continue their single-point buying spree like they have been doing in 2014. ^[37]

What does all this mean? 2015 will see a significant move towards grouping dealerships together into large, corporate and too-big-to-fail entities, not unlike what has happened to the banking industry over the last 20 years^[38]. The same fate will find Berkshire Automotive, AutoNation and the largest dealer groups in the United States invading single points like it’s a giant game of Risk.

Dealer Advertising Goes All-In on Digital

This may seem like old news, but in reality an alarming number of dealerships are still spending the majority of their yearly advertising budgets on newspaper. This is the result of manufacturers’ outdated co-op rules, in addition to the perceived risk of abandoning what has worked for so many years.

2015 will represent a full swing in the digital direction with a new industry forecast predicting newspaper spending by the automotive industry will decline 27 percent over 2014 to a mere $2.14 billion, down from $2.94 billion.^[39] Other traditional forms of advertising are also expected to decline.

“Dealers are expected to slow spending on TV, telemarketing and direct mail by 11, 7 and 5 percent, respectively, in 2015.”^[40]

Most importantly, it also forecasts automotive online advertising spending will increase 25 percent, to $15.1 billion in 2015. This will produce some interesting opportunities for digital vendors in the automotive landscape as advertising online is big step up from putting together a newspaper ad. Dealers know they need to be advertising online, but few know how to do it themselves.

Pay-per-click, display advertising and email marketing vendors have long existed, but new emerging advertising mediums have yet to be adequately represented. Social media marketing (SMM) is one example where few vendors have yet to provide a quality solution to dealers. SMM is far more than being coached on how to respond to negative reviews, it is an entirely new advertising medium that is crushing other digital advertising investment returns. Without SMM vendor representation, the savviest dealers can succeed in this advertising venue without being swallowed by a wave of competition.

Unfortunately, with such a rapid switch to digital, many dealerships will find themselves at the mercy of their vendors. When new technology sweeps across any industry at this pace, it can be difficult to discern who are the "good guys". At the 2014 NADA convention it was evident this was the direction the industry was headed. If you were there, you would have noticed that for the first time, digital vendors significantly outnumbered traditional vendors. Not surprisingly, all claimed to be the best solution to the trendy buzzword “big data.”

As dealers get deeper into the weeds of digital advertising, they will realize the need to hire help from within to protect themselves. This will result in a significant increase in Dealership Marketing Manager job postings in 2015.

Finance Fallout Begins

It is no secret that vehicle loan terms are getting longer each year, incentives are rising, and collectively we either don’t realize or don’t care about the gigantic hole that the auto industry continues to dig itself into. In the first quarter of 2014, 25 percent of all new-vehicle car loans were at a length of 73- to 84-month terms. Four years ago, that number was under 10 percent. The current average new-car loan today is 66 months,^[41] an increase of 5 percent over the 2010 average of 62.9. ^[42] While that increase may seem small, extending the vehicle-purchasing cycle of the entire industry by four months while attempting to increase sales is a monumental problem.

In order to maintain sales forecasts and capture market share, manufacturers are forced to shell out more incentives and larger loans to get customers out of their contracts earlier each cycle. Hitting targets each month means expanding the “bubble” a little more each time.

In 2013, new vehicle incentives grew by 3.7 percent to an average of $2,576 per year.^[43] In July of 2014, incentives were being pushed higher at a year-over-year increase of 7.1 percent. ^[44] As manufacturers continue to fight each other for top spot, these incentive increases have seemingly no end in sight. What that does is directly reduce used-vehicle pricing and demand, as in many instances a new car is less expensive than a pre-owned one. The industry is literally robbing Peter to pay Paul.

Now, add infinitely increasing incentives to lending amounts and terms at an all-time high. According to Equifax reports, “U.S. auto loan volumes are at an all-time high, with some $902.2 billion outstanding at the end of the first half of 2014, up 10 percent year-over-year.”^[45] Car buyers are financing new-car purchases by rolling old debt at an alarming rate. Ninety-six-month amortization is now commonplace, as is rolling negative equity from the last vehicle into the new contract.

“A debt-rating agency noted recently that in some cases consumers are borrowing up to 135% of the value of the vehicle. These “Negative Equity” loans, as they’re called, are the same sort that premeditated the U.S. mortgage market before it collapsed in 2008.”^[46]

Now add the sub-prime business on top of all this, which in the first three months of 2014, increased upwards of 15 percent to $145.6 billion^[47] with no signs of slowing. Oh, and don’t forget that the average vehicle lifespan is also at an all-time high of 11.4 years^[48].

This perfect storm, or “bubble,” will burst sooner than later, and the cracks will be large enough to see in 2015. Any change in the system, be it the expected Federal Funds Interest Rate hike beginning in spring 2015^[49] or increased delays on a global airbag shortage^[50] or the Japanese recession,^[51] could be the catalyst to pull the floor from underneath our industry.

2016 – What Is on the Horizon

I can’t close this off without taking a Hail Mary stab at the long, long-term future for the automotive industry. Having already tackled some pretty significant topics for how I envision 2015 will play out, I might as well share a few things that I have on the radar for 2016. We will see how these, and all my other predictions, fare come December 2015.

•          Uber Takes Market Share from Auto Industry
•          Uber goes public, or Uber acquisition talks begin
•          CarMax, EchoPark strengthen hold on used market
•          Self-driving cars on sale
•          No-haggle pricing dominant
•          Insurance plug-in “snapshot” mandatory
•          Car loan bubble bursts/Picking up the pieces
•          Eric Miltsch and Jay Radke become world's first human cyborgs

In Closing,

If I wasn’t open to criticism, I wouldn’t publish something like this. The goal wasn’t to be a fortune-teller, but to spark conversation about the future of our industry. As the old adage goes, “If you are not riding the wave of change, you will find yourself beneath it.”

So please, comment, critique or call me crazy; conversation allows us to be a part of writing the next chapter.

Robert Karbaum arguably has the best name in the automotive industry. His combined experience over the past decade in E-Commerce and the automotive industry has allowed him to master the art of “AutoSpeak”; the ancient language that bridges the gap between internet geeks, the showroom floor and everything in-between. He manages the E-Commerce, Social and Digital Marketing operations at Weins Canada Inc. (formerly Don Valley North Automotive Group); a prestigious automotive group in Canada which includes the #1 volume Toyota and Lexus dealerships in the country. 

Catch him on Twitter (@karbaum) or DroppinBaums.com.

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[38] Big Bank Theory Chart. (2010, January 1). Retrieved from http://www.motherjones.com/files/images/big-bank-theory-chart-large.jpg

[39] Chappell, L. (2014, November 15). Dealerships' newspaper ad spending forecast to dive. Retrieved from http://www.autonews.com/article/20141115/RETAIL03/311179994/dealerships-newspaper-ad-spending-forecast-to-dive

[40] Car Dealership Newspaper Ads Expected to Die Off Faster in 2015. (2014, November 17). Retrieved from http://www.carscoops.com/2014/11/car-dealership-newspaper-ads-expected.html

[41] Mays, K. (2014, September 7). Long-term car loans skyrocket. Retrieved from http://www.usatoday.com/story/money/cars/2014/09/07/car-loans-long-term/15237795/

[42] TATE-OF-THE-INDUSTRY REPORT - 2012. (2013). Retrieved from http://www.nada.org/NR/rdonlyres/C1C58F5A-BE0E-4E1A-9B56-1C3025B5B452/0/NADADATA2012Final.pdf

[43] 2014 Q1 White Paper NADA Used Car Guide Special Report: 2014 Used Vehicle Price Forecast. (2014, April 1). Retrieved from http://www.nada.com/b2b/WhitePaper-2014-Q1.aspx

[44] Young, A. (2014, July 29). July 2014 US New Auto Sales Forecast: Record High Auto Lending Pushing US New Car Sales To Highs Unseen Since 2006. Retrieved from http://www.ibtimes.com/july-2014-us-new-auto-sales-forecast-record-high-auto-lending-pushing-us-new-car-sales-1642516

[45] Niedermeyer, E. (2014, July 29). Is Your Car an Underwater Time Bomb? Retrieved from http://www.bloombergview.com/articles/2014-07-29/is-your-car-an-underwater-time-bomb

[46] Marr, G., & Shecter, B. (2014, November 22). How Canada’s auto loan bubble has become a ticking time bomb. Retrieved from http://business.financialpost.com/2014/11/22/how-canadas-auto-loan-bubble-has-become-a-ticking-time-bomb/

[47] Silver-Greenberg, J., & Corkerry, M. (2014, July 19). In a Subprime Bubble for Used Cars, Borrowers Pay Sky-High Rates. Retrieved from http://dealbook.nytimes.com/2014/07/19/in-a-subprime-bubble-for-used-cars-unfit-borrowers-pay-sky-high-rates/?_r=0

[48] Wile, R. (2014, June 9). The Average Age Of US Vehicles Is At A Record High Of 11.4 Years. Retrieved from http://www.businessinsider.com/the-average-age-of-us-vehicles-stays-at-record-high-of-114-years-2014-6

[49] Mahn, K. (2014, March 27). Fed On Target To Raise Interest Rates In Spring 2015. Retrieved from http://www.forbes.com/sites/advisor/2014/03/27/fed-on-target-to-raise-interest-rates-in-spring-2015/

[50] Sedgwick, D. (2014, November 24). Airbag inflator shortage plagues industry with tight capacity, 2 years needed for replacements. Retrieved from http://www.autonews.com/article/20141124/OEM11/311249954/airbag-inflator-shortage-plagues-industry

[51] Kurtenbach, E. (2014, November 24). Japan's Young Fret as Unexpected Recession Hits. Retrieved from http://abcnews.go.com/International/wireStory/japans-young-fret-unexpected-recession-hits-27133443

There are three types of people in our industry; those who are drawn to change, those who hide from it, and those who pull out their big guns to protect the way things were. I have never had a problem determining which side of the fence a person stands on, as I am never shy about sharing my visions for the future.   

When discussing the future of the automotive business I often use the analogy of when the Finance Department first entered the dealership. Prior to this, the concept of removing the salesperson from the deal was preposterous. It would be perceived as a disaster if the customer was handed off to someone else, let alone someone in another office. Today, a dealership without a Finance Department would seem ludicrous. The potential profit loss would be monumental, right? Maybe right now, but again, the tides are a-turning and what seems crazy today may be commonplace tomorrow. Often, the best ideas start out sounding the craziest; as Einstein once said, “For an idea that does not first seem insane, there is no hope.”

Since John North Willys sold the first vehicle out of his Elmira, New York, sporting-goods shop in 1901^[1], the car-buying process has fundamentally remained the same. That’s 115 years of an industry operating on the same basic principles that it was founded on. Fortunately, or unfortunately, depending on which side of the fence you subscribe to, that is about to change in 2015. In fact, next year has the potential to be one of the most revolutionary years the auto industry has seen in a very long time.

Some of these changes are small, some are crazier than others, and some have monumental implications, but I believe we will see all of them happen in 2015.

OEM Direct Sale to Consumers

Tesla is doing the dirty work for the other automotive manufacturers right now. The manufacturers won’t admit it, for obvious reasons, but they are all cheering on Elon Musk behind the scenes. While Tesla is fighting to sell their niche vehicles online and in their boutiques, the big OEMs are rapidly approaching a digital wall, preventing them from innovating into the future. Last year General Motors launched their Shop-Click-Drive online platform nationwide,^[2] but it represents the furthest the manufacturers can progress unless Tesla is successful in their manufacturer direct-to-consumer sales battle. Sooner or later, the big OEMs will need to sell direct to consumers too.

Shop-Click-Drive is an online e-commerce-style platform where a customer can select their vehicle, estimate payments and trade-in value, apply for credit, accessorize and schedule a test drive at the location of their choosing^[3]. In its first year of operation, the platform sold over 13,000 vehicles nationwide^[4] with only a third of the dealers participating and little, if any, advertising. 2015 will see a sharp increase in Shop-Click-Drive sales as GM will be forced to advertise heavily to fend off new competitors to the online vehicle sales space. Additionally, GM may even make the program mandatory for all participating dealers, as they have with other online initiatives this past year^[5].

Once fully up and running, Shop-Click-Drive will begin to have a profound impact on the automotive industry. Unfortunately, it still falls short of competing with every other retail sector because you cannot fully buy a vehicle online. Yes, with Shop-Click-Drive you can get close, but ultimately you must finalize everything in the dealership. Imagine your disappointment if you were told you HAD to physically go to a Best Buy to pick up the GoPro you just ordered online.

GM is sure to gain market share until the other OEMs catch up but this is a small Band-Aid on a gaping wound. Customers want everything online, and if you refuse to adapt, someone else will happily provide a better solution. Blockbuster believed heavily in the customer in-store experience^[6], while Netflix realized there was a much better solution online.^[7]

If you want to see a glimpse into the auto industry’s immediate future, we can look at what is happening to the car-rental industry right now. First, car-sharing services started eating up market share, then came Uber to finish the job. This resulted in almost zero growth^[8] for the rental industry in 2013, yet car-sharing memberships increased globally by 53 percent ^[9] and Uber is expected to generate $10 billion in revenue for 2014.^[10]

The emergence of new competition was proof that the car-rental industry’s old business model wasn’t working. It was stagnant, outdated and needed to be overhauled for the needs of the modern online shopper. Fortunately, they decided to change and fight back by both buying out some of their competition^[11] and, more importantly, modernizing their business model. For example, National Car Rental just launched their “Control Enthusiast” campaign this November featuring actor Patrick Warburton. The concept of the commercial is about eliminating their old business model and showcasing the new:

“That’s why this road warrior rents from National. I can bypass the counter, and go straight to my car and I don’t have to talk to any humans unless I want to. And I don’t.”^[12]

The car-rental industry was forced to adapt to the needs of the customer, and so will we. Teasing the customer with an “almost e-commerce” experience may actually do more harm than good. The efficiencies GM is attempting to create with Shop-Click-Drive are all but eliminated when the customer is forced through the same old hoops once they arrive at the dealership. Once you invite customers to the online space, they will expect it to operate like every other online retail space. Otherwise, you are just putting lipstick on a digital pig.  

Where this will take us in 2015 is that one of the major automotive manufacturers will begin a direct-to-consumer e-commerce trial “coincidentally” in one of the states in which Tesla has successfully changed the laws. Instead of stopping before the sale is completed and forcing customers into the store, the trial will allow a customer to 100 percent purchase the vehicle and wait for it to arrive, just like any other online purchase. But what about the test drive, you ask? The percentage of customers declining a test drive before purchase has risen to 17 percent in 2014. ^[13] That would equate to 2.8 million out of a potential 16.4 million^[14] new car sales in the United States in 2015 that would be purchased without a test drive. That is more than enough for an OEM to do an online direct-to-consumer trial.

The OEM will convince their dealer body that this trial is a good idea by counting each online sale towards the targets and bonus plans of the lucky dealer who represents the market area of the online purchaser. The dealer will benefit by getting sale on their books, much like when the manufacturer gives away vehicles in large contests. The closet dealer to the winner gets a complimentary house deal—if their Customer Satisfaction Index is high enough, of course.

We may hear rumblings of this direct-to-consumer trial by summer, as the manufacturers, save for GM, have to act quickly because the dealers themselves have already started trekking down this trail. AutoNation announced in November it would be launching its new online SmartChoice Express platform^[15] backed by a promised $100-million investment. While it is similar to GM’s Shop-Click-Drive platform, it is significant because it serves as an awkward reminder that a dealer group is leading the digital race against the other manufacturers. 

Remember, it will only be a trial, but the results could change our business forever.

Satellite Service Centers Will Fuel Fixed Operations Sales for Dealer Groups

If the sales process is headed online, the need for expanding brick-and-mortar shifts entirely to Fixed Operations. Why, then, would anyone buy or build new dealerships (other than by force) when one can buyout our industry’s oldest enemy: the mom-and-pop repair shops.

As vehicles become more computers than cars, the traditional repair shop is already having trouble handling the new technology. Any vehicle produced today can have as many as 50 to 100 different tiny computers controlling everything from steering to acceleration. ^[16] The modern mechanic needs to know just as much about re-flashing the ECU as she/he needs to know about a cam shaft. So it’s not as much of a takeover as putting this component of the auto industry out of its inevitable misery.

When Starbucks sought to take over the local coffee shop, they did so by oversaturating the market to the point where Starbucks locations were literally across the street from other Starbucks locations^[17]. A large auto group can easily do the same against the small-point competitors in their market.

Ford already started down this road when they began opening their Quick Lane Tire & Auto Centres to compete against the Jiffy Lube and big-box stores. Now they have over 700 locations across the United States^[18] and 69 in Canada^[19] capturing market share.

Expect to see large auto groups buying up and converting existing local shops as a means of handling overflow and, more importantly, increasing market share in geographical areas between or surrounding dealerships. The consumer can receive the same factory-trained technicians, the same loyalty promotions, and the same OEM parts at a shop around the corner, as opposed to driving the extra distance to your main operation. With careful purchasing, a large automotive group could entirely take over the fixed operations in a geographical area overnight.

Added satellite locations can also fuel additional sales opportunities, with additional test-drive starting points, e-commerce parts and accessory sales pick-up locations, and most importantly, more parking. What dealer group wouldn’t want to expand their footprint in a short period of time for a significantly lower cost than buying or building entire dealerships?

The Death of the Salesperson

This is not a new concept and has been the heated topic of many arguments around the auto industry for some time now. The concept is that people will no longer need a salesperson to purchase an automobile and can do everything online. There is some merit to this. In 2012, 10 percent of car buyers opted not to test-drive. ^[20] By the beginning of 2014 that number was up to 17 percent.^[21] While a surprising number, it still leaves 83 percent of the population wanting a test drive.

Eventually there will be no need for a car salesperson, but that time is more than a little ways off. What we will start experiencing in 2015 is something entirely different. The current salesperson is dying off with age, not by lack of interest.

The seasoned salesperson that sells you 16-25 cars a month, with a large portfolio and years of experience, is on her/his way out of our industry. They are just getting older, and many are tired of what the industry has become. Margins and commissions are thinning every day, everything is online first rather than belly-to-belly, and their customer base is buying fewer vehicles at longer intervals. As these veterans start retiring out of our industry, a huge gap is left in their wake, as fresh bodies are nowhere to be found.

The newest generation of workers, Gen Y, has little to no interest in entering a career as a car salesperson. They are highly educated, digitally focused, have zero experience with negotiating and, most importantly, cannot grasp the concept of 100 percent commission. Try asking someone under the age of 35 if they want to work 60+ hours a week for an average of $1,500 a month with no guaranteed pay. ^[22] There is a break in the line, and dealerships are really starting to feel the pinch.

Ask any manager if she/he has enough salespeople on the floor. The unanimous answer is a definite no, followed by, “Why, do you know of anyone?” The situation has reached despairing levels, and seasoned salespeople are taking advantage of it. If you have any previous experience selling cars, it is nearly impossible that you couldn’t walk in the doors of any dealership in the country and get a job on the spot. This is a dangerous situation for management. Job security and loyalty are meaningless, and if the dealership next door is offering an extra 1 percent on the commission plan, your salespeople could be out the door tomorrow. Managers are dealing with a declining level of control on the floor, as discipline becomes next to impossible if every dealer is one-upping each other to take the best sales staff. Suddenly you are more worried about your competitor’s pay plan than the price of the cars in their advertising.

What will become the new trend in 2015 is the “Product Specialist,” replacing the commissioned salesperson. In order to refill the barracks with fresh blood, dealerships will have to adopt a salary and bonus, or all-salary structure. ^[23] The 100 percent commission strategy will either be grandfathered out or removed altogether. It’s not going to be an easy pill to swallow, but there are no alternatives on the horizon. The next generation to fill the ranks of your dealership value opportunity over money and job security. ^[24] They would much rather receive standard pay than a possible range based on their performance, and more importantly value a flexible work-life integration over anything else.^[25]

In 1989, Best Buy modified their pay structure away from commission, a revolutionary move at the time that was scoffed at by their competitors.^[26] The reason for doing so was because their business formula was out of sync with their customers. At the time, the electronics customer had little need for a salesperson and preferred the hassle-free buying experience. The gamble paid off, helping to grow sales from $439 million in 1989 to $2.6 billion in 1993^[27]. Auto dealers have already begun to follow suit, moving to non-commission pay plans already as a means of acquiring a new generation of car salespeople^[28]. Some are even dubbing it the “Best Buy” pay plan, in reference to the company’s very successful shift away from the aggressive salesperson. But these numbers have been small thus far, as the perceived risk is quite high.

The commissioned pay plan isn’t only a problem for attracting talent, it also is viewed negatively by the purchaser as well. Much like Best Buy’s problem in 1989, today’s automotive customer does not like dealing with commissioned salespeople as much as they wouldn’t want to be one. So much so that in a recent Microsoft study on millennials found that more than half said going to a dealership was more painful than going to the dentist. ^[29]

“J.D. Power and Associates agrees. The company has advocated for years that to avoid commission breath, dealerships should pay bigger monthly salaries and less commission. But there have been few takers -- certainly too few to be statistically significant, says Jon Osborn, research director for J.D. Power, of Westlake Village, Calif.”^[30]

So as a dealer, you have a problem at both ends. Attracting top-level sales talent is getting harder and harder, in addition to your CSI dropping because you are putting more pressure on your staff for higher sales and higher gross. It’s a dire situation to be in, but for many, the solution of a non-commission pay plan appears riskier than staying the course. 2015 will spark the beginning of change, where by force or by courage, many dealers will take the Best Buy pay plan leap of faith. Those who keep their heads in the sand will find their sales floor quite empty in the coming months.

Death of the Single Point

It used to be that if you worked in the automotive industry, a viable dream was to one day own your own store. Today, unless you’re Warren Buffett^[31] that likely will never happen. Furthermore, if you did achieve that dream and currently own a single-point operation, or maybe even two or three stores, that dream is also about to roll the credits.

For once, the Canadian market is ahead of the U.S. market in an automotive statistic, with close to 50 percent of vehicles sold in the country coming from automotive groups^[32]. The largest group and the only publicly traded, AutoCanada, literally has been buying locations on a bi-weekly basis^[33].

It’s not all bad news – rumors are rampant on both sides of the border that groups are happily paying two to three times the value of the stores. It makes for an easy decision for the single-point owners. Rather than face increasing competition, smaller margins, increased employment and capital expenditures, they can opt to sell for a gigantic cheque and retire in paradise.

Not to mention increased pressures from the manufacturers to update facilities on increasingly shorter timeframes. Hyundai recently unveiled their new Global Dealership Space Identity a mere four years after 50 percent of its U.S. dealers spent millions to update their facilities to the rooftop cube.^[34] In Hyundai’s defense, they are also spending a monumental amount of money to upgrade their own headquarters in Korea ^[35].

The acquisition of the Van Tuyl Group by Buffett’s Berkshire Group sparked a frenzy of mass acquisition rumors across the industry. Overnight, the “more is more” philosophy was reignited, as the vast majority of dealerships in the United States are currently not part of a dealer group.^[36] With big names like Buffett entering the picture, groups like AutoNation and Asbury will be forced to continue their single-point buying spree like they have been doing in 2014. ^[37]

What does all this mean? 2015 will see a significant move towards grouping dealerships together into large, corporate and too-big-to-fail entities, not unlike what has happened to the banking industry over the last 20 years^[38]. The same fate will find Berkshire Automotive, AutoNation and the largest dealer groups in the United States invading single points like it’s a giant game of Risk.

Dealer Advertising Goes All-In on Digital

This may seem like old news, but in reality an alarming number of dealerships are still spending the majority of their yearly advertising budgets on newspaper. This is the result of manufacturers’ outdated co-op rules, in addition to the perceived risk of abandoning what has worked for so many years.

2015 will represent a full swing in the digital direction with a new industry forecast predicting newspaper spending by the automotive industry will decline 27 percent over 2014 to a mere $2.14 billion, down from $2.94 billion.^[39] Other traditional forms of advertising are also expected to decline.

“Dealers are expected to slow spending on TV, telemarketing and direct mail by 11, 7 and 5 percent, respectively, in 2015.”^[40]

Most importantly, it also forecasts automotive online advertising spending will increase 25 percent, to $15.1 billion in 2015. This will produce some interesting opportunities for digital vendors in the automotive landscape as advertising online is big step up from putting together a newspaper ad. Dealers know they need to be advertising online, but few know how to do it themselves.

Pay-per-click, display advertising and email marketing vendors have long existed, but new emerging advertising mediums have yet to be adequately represented. Social media marketing (SMM) is one example where few vendors have yet to provide a quality solution to dealers. SMM is far more than being coached on how to respond to negative reviews, it is an entirely new advertising medium that is crushing other digital advertising investment returns. Without SMM vendor representation, the savviest dealers can succeed in this advertising venue without being swallowed by a wave of competition.

Unfortunately, with such a rapid switch to digital, many dealerships will find themselves at the mercy of their vendors. When new technology sweeps across any industry at this pace, it can be difficult to discern who are the "good guys". At the 2014 NADA convention it was evident this was the direction the industry was headed. If you were there, you would have noticed that for the first time, digital vendors significantly outnumbered traditional vendors. Not surprisingly, all claimed to be the best solution to the trendy buzzword “big data.”

As dealers get deeper into the weeds of digital advertising, they will realize the need to hire help from within to protect themselves. This will result in a significant increase in Dealership Marketing Manager job postings in 2015.

Finance Fallout Begins

It is no secret that vehicle loan terms are getting longer each year, incentives are rising, and collectively we either don’t realize or don’t care about the gigantic hole that the auto industry continues to dig itself into. In the first quarter of 2014, 25 percent of all new-vehicle car loans were at a length of 73- to 84-month terms. Four years ago, that number was under 10 percent. The current average new-car loan today is 66 months,^[41] an increase of 5 percent over the 2010 average of 62.9. ^[42] While that increase may seem small, extending the vehicle-purchasing cycle of the entire industry by four months while attempting to increase sales is a monumental problem.

In order to maintain sales forecasts and capture market share, manufacturers are forced to shell out more incentives and larger loans to get customers out of their contracts earlier each cycle. Hitting targets each month means expanding the “bubble” a little more each time.

In 2013, new vehicle incentives grew by 3.7 percent to an average of $2,576 per year.^[43] In July of 2014, incentives were being pushed higher at a year-over-year increase of 7.1 percent. ^[44] As manufacturers continue to fight each other for top spot, these incentive increases have seemingly no end in sight. What that does is directly reduce used-vehicle pricing and demand, as in many instances a new car is less expensive than a pre-owned one. The industry is literally robbing Peter to pay Paul.

Now, add infinitely increasing incentives to lending amounts and terms at an all-time high. According to Equifax reports, “U.S. auto loan volumes are at an all-time high, with some $902.2 billion outstanding at the end of the first half of 2014, up 10 percent year-over-year.”^[45] Car buyers are financing new-car purchases by rolling old debt at an alarming rate. Ninety-six-month amortization is now commonplace, as is rolling negative equity from the last vehicle into the new contract.

“A debt-rating agency noted recently that in some cases consumers are borrowing up to 135% of the value of the vehicle. These “Negative Equity” loans, as they’re called, are the same sort that premeditated the U.S. mortgage market before it collapsed in 2008.”^[46]

Now add the sub-prime business on top of all this, which in the first three months of 2014, increased upwards of 15 percent to $145.6 billion^[47] with no signs of slowing. Oh, and don’t forget that the average vehicle lifespan is also at an all-time high of 11.4 years^[48].

This perfect storm, or “bubble,” will burst sooner than later, and the cracks will be large enough to see in 2015. Any change in the system, be it the expected Federal Funds Interest Rate hike beginning in spring 2015^[49] or increased delays on a global airbag shortage^[50] or the Japanese recession,^[51] could be the catalyst to pull the floor from underneath our industry.

2016 – What Is on the Horizon

I can’t close this off without taking a Hail Mary stab at the long, long-term future for the automotive industry. Having already tackled some pretty significant topics for how I envision 2015 will play out, I might as well share a few things that I have on the radar for 2016. We will see how these, and all my other predictions, fare come December 2015.

•          Uber Takes Market Share from Auto Industry
•          Uber goes public, or Uber acquisition talks begin
•          CarMax, EchoPark strengthen hold on used market
•          Self-driving cars on sale
•          No-haggle pricing dominant
•          Insurance plug-in “snapshot” mandatory
•          Car loan bubble bursts/Picking up the pieces
•          Eric Miltsch and Jay Radke become world's first human cyborgs

In Closing,

If I wasn’t open to criticism, I wouldn’t publish something like this. The goal wasn’t to be a fortune-teller, but to spark conversation about the future of our industry. As the old adage goes, “If you are not riding the wave of change, you will find yourself beneath it.”

So please, comment, critique or call me crazy; conversation allows us to be a part of writing the next chapter.

Robert Karbaum arguably has the best name in the automotive industry. His combined experience over the past decade in E-Commerce and the automotive industry has allowed him to master the art of “AutoSpeak”; the ancient language that bridges the gap between internet geeks, the showroom floor and everything in-between. He manages the E-Commerce, Social and Digital Marketing operations at Weins Canada Inc. (formerly Don Valley North Automotive Group); a prestigious automotive group in Canada which includes the #1 volume Toyota and Lexus dealerships in the country. 

Catch him on Twitter (@karbaum) or DroppinBaums.com.

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[2] Colias, M. (2013, November 6). GM to expand online Shop-Click-Drive program nationwide. Retrieved from http://www.autonews.com/article/20131106/RETAIL01/131109874/gm-to-expand-online-shop-click-drive-program-nationwide

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[22] McDonald, M. (2014, February 14). Car Salesman Confidential: How We Get Paid These Days, the 'Home Run' Is Harder to Come By. Retrieved from http://blogs.motortrend.com/1402_car_salesman_confidential_how_to_get_paid.html

[23] Rogers, C. (2013, November 20). Say Goodbye to the Car Salesman No-Haggle Price, Online Selling Transform Auto Retailing. Retrieved from http://online.wsj.com/articles/SB10001424052702304672404579182061400578466

[24] Generation Y: Powerhouse of the global economy Restless generation is a challenge – and a huge opportunity – for employers. (2009). Retrieved from http://www2.deloitte.com/content/dam/Deloitte/us/Documents/human-capital/us-consulting-hc-generationy-snapshot-041509.pdf

[25] Agshar, R. (2014, January 13). What Millennials Want In The Workplace (And Why You Should Start Giving It To Them). Retrieved from http://www.forbes.com/sites/robasghar/2014/01/13/what-millennials-want-in-the-workplace-and-why-you-should-start-giving-it-to-them/

[26] Crosby, J. (2012, May 19). One man's force of will built a retailing empire. Retrieved from http://www.startribune.com/business/152098405.html

[27] Best Buy Co., Inc. History. (2004). Retrieved from http://www.fundinguniverse.com/company-histories/best-buy-co-inc-history/

[28] Jones, M. (2013, November 18). Innovative Texas Auto Dealer Ditches Sales Commissions in Favor of "Solutions." Retrieved from http://www.edmunds.com/car-news/innovative-texas-auto-dealer-ditches-sales-commissions-in-favor-of-solutions.html

[29] Wells, G. (2013, February 1). Selling to Millennials. Retrieved from http://www.autodealermonthly.com/channel/the-showroom/article/story/2013/02/selling-to-millennials.aspx

[30] Henry, J. (2010, May 31). Simple remedies for 'commission breath' Retrieved from http://www.autonews.com/article/20100331/RETAIL02/100329887

[31] Bachman, J. (2014, October 2). What Turned Warren Buffett Into a Car Guy? Economics. Retrieved from http://www.businessweek.com/articles/2014-10-02/what-turned-warren-buffett-into-a-car-dealership-guy-economics

[32] Kennan, G. (2013, February 12). Big dealers remodel Canadian car lots. Retrieved from http://www.theglobeandmail.com/globe-investor/big-dealers-remodel-canadian-car-lots/article8535918/

[33] Investors Press Releases. (2014, November 26). Retrieved from http://www.autocan.ca/investors-press-releases.htm

[34] Beene, R. (2014, August 12). Hyundai goes global with store design. Retrieved from http://www.autonews.com/article/20140811/OEM03/308119979/hyundai-goes-global-with-store-design

[35] Mundy, S. (2014, September 23). Hyundai Works Strike in Protest of HQ Pricetag. Retrieved from http://www.ft.com/cms/s/0/85df9c68-42ea-11e4-9a58-00144feabdc0.html#axzz3JwkTLHrl

[36] Buffett to buy Van Tuyl Group, create Berkshire Hathaway Automotive. (2014, October 2). Retrieved from http://www.autonews.com/article/20141002/RETAIL07/141009938/buffett-to-buy-van-tuyl-group-create-berkshire-hathaway-automotive

[37] Wilson, A. (2014, February 10). AutoNation, Asbury boost spending plans. Retrieved from http://www.autonews.com/article/20140210/RETAIL/302109981/autonation-asbury-boost-spending-plans

[38] Big Bank Theory Chart. (2010, January 1). Retrieved from http://www.motherjones.com/files/images/big-bank-theory-chart-large.jpg

[39] Chappell, L. (2014, November 15). Dealerships' newspaper ad spending forecast to dive. Retrieved from http://www.autonews.com/article/20141115/RETAIL03/311179994/dealerships-newspaper-ad-spending-forecast-to-dive

[40] Car Dealership Newspaper Ads Expected to Die Off Faster in 2015. (2014, November 17). Retrieved from http://www.carscoops.com/2014/11/car-dealership-newspaper-ads-expected.html

[41] Mays, K. (2014, September 7). Long-term car loans skyrocket. Retrieved from http://www.usatoday.com/story/money/cars/2014/09/07/car-loans-long-term/15237795/

[42] TATE-OF-THE-INDUSTRY REPORT - 2012. (2013). Retrieved from http://www.nada.org/NR/rdonlyres/C1C58F5A-BE0E-4E1A-9B56-1C3025B5B452/0/NADADATA2012Final.pdf

[43] 2014 Q1 White Paper NADA Used Car Guide Special Report: 2014 Used Vehicle Price Forecast. (2014, April 1). Retrieved from http://www.nada.com/b2b/WhitePaper-2014-Q1.aspx

[44] Young, A. (2014, July 29). July 2014 US New Auto Sales Forecast: Record High Auto Lending Pushing US New Car Sales To Highs Unseen Since 2006. Retrieved from http://www.ibtimes.com/july-2014-us-new-auto-sales-forecast-record-high-auto-lending-pushing-us-new-car-sales-1642516

[45] Niedermeyer, E. (2014, July 29). Is Your Car an Underwater Time Bomb? Retrieved from http://www.bloombergview.com/articles/2014-07-29/is-your-car-an-underwater-time-bomb

[46] Marr, G., & Shecter, B. (2014, November 22). How Canada’s auto loan bubble has become a ticking time bomb. Retrieved from http://business.financialpost.com/2014/11/22/how-canadas-auto-loan-bubble-has-become-a-ticking-time-bomb/

[47] Silver-Greenberg, J., & Corkerry, M. (2014, July 19). In a Subprime Bubble for Used Cars, Borrowers Pay Sky-High Rates. Retrieved from http://dealbook.nytimes.com/2014/07/19/in-a-subprime-bubble-for-used-cars-unfit-borrowers-pay-sky-high-rates/?_r=0

[48] Wile, R. (2014, June 9). The Average Age Of US Vehicles Is At A Record High Of 11.4 Years. Retrieved from http://www.businessinsider.com/the-average-age-of-us-vehicles-stays-at-record-high-of-114-years-2014-6

[49] Mahn, K. (2014, March 27). Fed On Target To Raise Interest Rates In Spring 2015. Retrieved from http://www.forbes.com/sites/advisor/2014/03/27/fed-on-target-to-raise-interest-rates-in-spring-2015/

[50] Sedgwick, D. (2014, November 24). Airbag inflator shortage plagues industry with tight capacity, 2 years needed for replacements. Retrieved from http://www.autonews.com/article/20141124/OEM11/311249954/airbag-inflator-shortage-plagues-industry

[51] Kurtenbach, E. (2014, November 24). Japan's Young Fret as Unexpected Recession Hits. Retrieved from http://abcnews.go.com/International/wireStory/japans-young-fret-unexpected-recession-hits-27133443

​It is no secret that our industry is negatively viewed in the general populace.  That people consider us no better than a 1920’s Snake Oil Salesman.  This is why the Bargain Brothers reality TV show is so important for all of us in the automotive industry to get behind.

Changing the perception of an entire industry is not easy.  In fact it’s near impossible, but we need to start somewhere and fast.  This is where the Bargain Brothers reality show comes in.  Not only is it extremely funny to watch, but it shows the real side of owning and operating a dealership.  It showcases the family values, the hard work, and most importantly how an honest car dealership is run.

The last time our industry was showcased to the public was the “King of Cars” reality series.  I think we can all agree it did more harm than good in changing the public’s perception of a Used Car Dealer.

Bargain Brothers by comparison is a welcome breath of fresh air.  It portrays us how we really are, hardworking, honest, caring, and a little kooky.

The success of this show will benefit ALL of us in the auto industry.  The more we in the industry watch it, the more popular it gets, and the more it is exposed to the public.  If the public has the opportunity to fall in love with the MacIver family their outmoded opinions of our industry can change, and we can shake off the old snake skin.

Now yes, I am a bit biased as I have had the fortune to spend some great times with Doug (@dougmaciver) and Andrew MacIver (@_andrewmaciver) over the years and consider them great friends HOWEVER I can honestly say that even if I had never met them I would be saying the same thing.

I urge everyone within the DrivingSales community to get behind Bargain Brothers and help promote it so that in the future when a customer thinks of a Used Car Salesperson they will think of an honest hard working family, rather than what you find on Google Images when you look it up.

Who would you rather be the face of our industry?

Watch New Episodes of  The Bargain Brothers Tuesdays at 7 (EST) on the BNN Network, or watch all the aired episodes online right now at http://www.bnn.ca/shows/bargain-brothers.aspx  or on the BNN GO Mobile App http://www.bnn.ca/bnn-go-app.aspx.

​It is no secret that our industry is negatively viewed in the general populace.  That people consider us no better than a 1920’s Snake Oil Salesman.  This is why the Bargain Brothers reality TV show is so important for all of us in the automotive industry to get behind.

Changing the perception of an entire industry is not easy.  In fact it’s near impossible, but we need to start somewhere and fast.  This is where the Bargain Brothers reality show comes in.  Not only is it extremely funny to watch, but it shows the real side of owning and operating a dealership.  It showcases the family values, the hard work, and most importantly how an honest car dealership is run.

The last time our industry was showcased to the public was the “King of Cars” reality series.  I think we can all agree it did more harm than good in changing the public’s perception of a Used Car Dealer.

Bargain Brothers by comparison is a welcome breath of fresh air.  It portrays us how we really are, hardworking, honest, caring, and a little kooky.

The success of this show will benefit ALL of us in the auto industry.  The more we in the industry watch it, the more popular it gets, and the more it is exposed to the public.  If the public has the opportunity to fall in love with the MacIver family their outmoded opinions of our industry can change, and we can shake off the old snake skin.

Now yes, I am a bit biased as I have had the fortune to spend some great times with Doug (@dougmaciver) and Andrew MacIver (@_andrewmaciver) over the years and consider them great friends HOWEVER I can honestly say that even if I had never met them I would be saying the same thing.

I urge everyone within the DrivingSales community to get behind Bargain Brothers and help promote it so that in the future when a customer thinks of a Used Car Salesperson they will think of an honest hard working family, rather than what you find on Google Images when you look it up.

Who would you rather be the face of our industry?

Watch New Episodes of  The Bargain Brothers Tuesdays at 7 (EST) on the BNN Network, or watch all the aired episodes online right now at http://www.bnn.ca/shows/bargain-brothers.aspx  or on the BNN GO Mobile App http://www.bnn.ca/bnn-go-app.aspx.

The DrivingSales community is a wonderfully inviting and accommodating community. However, for those who are here for the first time, I can understand that it can be a tad intimidating. Especially if “digital” is not your first language, some of the topics and conversations can seem overwhelming at first glance.

I wanted to write something for first-time users to DrivingSales.com, to ease them into the culture and experience that is found here. My goal is that if new users are more comfortable on their first experience, we will convert a higher percentage into active users. After all we are in the business of conversions, and the more people we have contributing, the more we will all get back from it. We are all in this together.

This article is for both the brand-new, hip, young digital girl/guy in the automotive world, and the veteran that is looking to broaden their horizons. Together we all have vastly different skill sets, and on DrivingSales, we can all work together.

Basics – Creating a Profile

Yes, today every site asks you to create a profile, leaving you with another password you can’t remember. However, a DrivingSales account will help launch you into the community. First and foremost, as you spend time on DrivingSales you will begin to foster online relationships. Creating an account allows you to connect with others in the community, and allows you to be easily contacted as well. 

I always enjoy meeting people in person that I have communicated with on DrivingSales. It’s amazing how the conversation can naturally flow from the online community to IRL (In Real Life). At the last DrivingSales Executive Summit I had the fantastic opportunity to meet community members for the first time, even though we have shared many conversations in the past.

In addition to your new profile being like a DrivingSales online business card, it also tracks your activity and notifies you when anyone responds to a post or article you have been participating in. This can be very helpful if you need to recall information weeks or months down the line. Just last week I looked up a YouTube link that I thought I had lost.

Once you have a profile started, head to mine: http://www.drivingsales.com/profile/24699 and click “Add Connection.” I don’t bite, I promise.

dScore

http://www.drivingsales.com/dscore

Throughout DrivingSales you will see that every member has a number beneath their name. That’s their “dScore” and, in short, it is a measurement of their contributions towards the community. Low number =  low contributions, high number = Rock Star. 

It’s relevant to time as well, meaning if a user goes dormant for a few days the score will begin to decline. This way, you know at any exact moment where a member stands in the community. 

What this means to you is that you can use dScore as a measuring stick when taking suggestions or advice from other community members. A high dScore would suggest they are a more trustworthy source. However, it’s just a guide; you definitely don’t want to discriminate against a great idea because of a number. 

You can see the full-length official description of dScore here: 

Forums

www.drivingsales.com/forums

The forums on DrivingSales make up the bulk of the activity on the site. The goal of the forums is knowledge: share and gain as much as you can. Think of it like a 20 Group that never ends, where you can “talk shop” with your colleagues till the cows come home.   

You will see a wide variety of topics in the forums: questions on how to solve a problem, industry news and events, general sales & service topics, opinions, best ideas, and so much more. For example, the current all-time most commented topic is “The Most Important Website Metric” and the most-viewed post is "Favorite or creative spiff ideas.”

It doesn’t always have to be “digital” – many conversations surround dealership operations, fixed ops, and day-to-day activities.

Forum Comments

Topics are just the beginning – what makes the forums so useful is the communication in the comments section. Depending on the subject matter, the comments from the other DrivingSales members can range from a lengthy debate to a brainstorming session.  

Sometimes conversations can get quite heated, especially when there is a stark difference of opinion. Yet, what is great about DrivingSales is that there is always a level of respect and professionalism amongst the members. So you can get right into a debate, but remember to keep classy.

Now, since this is a guide for new members, I will guess that you haven’t posted yet. What are you waiting for? Jump right in! Even if it’s just to introduce yourself. There are no dumb questions or comments. Everyone here is very supportive and eager to help. 

If you have a question to ask or have something to share, I highly encourage you to post away. Just click the “Ask a Question” button on the front page and you are off to the races. Or, if you want to start small, start commenting on the other posts.

Best Ideas

http://www.drivingsales.com/best-ideas

This section is a little bit hidden, but it should be a MUST-visit for all. It’s like the pizza place in the Cosmopolitan in Las Vegas – a little hard to find, but well worth it once you arrive.

Here you can find some fantastic ideas that others from the community have contributed, most with detailed descriptions, how-to guides, and statistical results of how well it worked. Not to mention, they are great conversation starters where the DrivingSales community can discuss how to take a great idea and make it even better.

If you have a great idea that you can share, I strongly encourage you to do so. The better we operate as an industry as a whole, the better off we all are. 

Blogs:

http://www.drivingsales.com/blogs

Blog articles on DrivingSales are separated into two sections: Exclusives, and Community Blog Posts. 

The Exclusives section are articles that are only available on DrivingSales, whereas Community Blog Posts are likely to be circulated elsewhere on the web.

Exclusive blog posts are important, because you know that they were written specifically for the DrivingSales audience. This drastically increases the relevancy for the reader, and should encourage you to read as many as you can.

Now, that isn’t to say that the Community Blog Posts are not good, as there are many articles I have found that were terrific. However, as time is a precious commodity, if you are looking to maximize your ROI on a short budget I would make sure to check the Exclusives section first.

Blogs: Topics

Blog articles on DrivingSales are separated into several sections:

• Accounting
• Finance & Insurance
• Fixed Ops
• General Management
• Marketing
• Internet/BDC
• Misc. Industry
• New Car, and
• Used Car

The categories make it easy to separate what you are most interested in.  For example, someone from the financial side of the business can hang out in Finance & Insurance, while an Internet manager can spend her/his time in Internet/BDC.

Since you are new to the site, don’t limit yourself to just the latest posts. Look back over the past few weeks and read everything that has gone on to really familiarize yourself with the community. 

Notification Settings

http://www.drivingsales.com/profile/preferences/settings_edit

Many users are not aware that you can tailor your notification system to suit your needs. By default, your account is set up to notify you of pretty much everything. However, if you are looking for a tailored-down experience, you can change any of the settings yourself.

News

http://www.drivingsales.com/news

http://www.drivingsales.com/news/add

Did you know you can share a news item? It’s super easy – just head to the news section and click on the “Share Auto News” section. Or, if you know that a particular story may create a debate, you can also share a news story in the forums.

The News section itself is a terrific place to stay informed. It’s curated by the community to provide the most specific automotive news for the community. You will always find a different perspective here, as the content is coming from individuals across North America. 

DrivingSales News

http://drivingsalesnews.com/

Speaking of news, DrivingSales also has its own content stream, including their very own reporter, Dave Martinson! 

DS News provides a steady stream of targeted automotive news and stories that you need to hear right away. It features the heavy-hitting stories from the automotive industry, including big news from the OEMs like recalls, new models, and marketing shifts. On the flip side, DS News is always up-to-date on the latest and greatest from the technology side, with features on things like the new Facebook Places updates and Google’s latest upgrades to mobile extensions.

Between DS News and the community-moderated news, you will be fully informed about everything that is happening in the automotive world. 

Vendor Ratings

http://www.drivingsales.com/ratings

One of the most important sections of DrivingSales is the Vendor Ratings. Here is where you can research all the vendors in our industry and get an unbiased view of how they stack up.

It is the first place you need to go when you are looking for a vendor solution, whether you are looking at mobile apps or fixed operations solutions.

DrivingSales Vendor Ratings are also fully transparent, and each rating is verified by a phone call from the DrivingSales team to ensure accuracy and honesty.

As Jared says:

We promise to provide a completely neutral platform for Dealers to anonymously rate and review their Vendors. We promise to verify that every single rating is accurate, trustworthy and from an actual dealership employee (we don't like cheaters). We promise to present this unbiased data to the entire industry via our website, DrivingSales.com, and our quarterly publication, the Dealership Innovation Guide.

Reading ratings is only half of the equation. It is also highly encouraged that you rate your vendors as well with your unique experiences. The more ratings in the system, the more value it holds for the entire community.

There are over 1,000 companies within the system already, and almost 20,000 reviews, so chances are your vendors are already included in the list. However, if you have a new vendor to add, it’s a very simple process. Just head to: http://www.drivingsales.com/ratings/companies/add and put in the details of the company.

Best of all, reviews are time-sensitive, meaning that they only last for 365 days. This ensures that if a vendor is beginning to decline in their quality, it will be reflected in their ratings. 

Is there anything I have forgotten? Have some other tips to share for new users? Share in the comments below!

Also, if you are new, use this as an opportunity to introduce yourself!

The DrivingSales community is a wonderfully inviting and accommodating community. However, for those who are here for the first time, I can understand that it can be a tad intimidating. Especially if “digital” is not your first language, some of the topics and conversations can seem overwhelming at first glance.

I wanted to write something for first-time users to DrivingSales.com, to ease them into the culture and experience that is found here. My goal is that if new users are more comfortable on their first experience, we will convert a higher percentage into active users. After all we are in the business of conversions, and the more people we have contributing, the more we will all get back from it. We are all in this together.

This article is for both the brand-new, hip, young digital girl/guy in the automotive world, and the veteran that is looking to broaden their horizons. Together we all have vastly different skill sets, and on DrivingSales, we can all work together.

Basics – Creating a Profile

Yes, today every site asks you to create a profile, leaving you with another password you can’t remember. However, a DrivingSales account will help launch you into the community. First and foremost, as you spend time on DrivingSales you will begin to foster online relationships. Creating an account allows you to connect with others in the community, and allows you to be easily contacted as well. 

I always enjoy meeting people in person that I have communicated with on DrivingSales. It’s amazing how the conversation can naturally flow from the online community to IRL (In Real Life). At the last DrivingSales Executive Summit I had the fantastic opportunity to meet community members for the first time, even though we have shared many conversations in the past.

In addition to your new profile being like a DrivingSales online business card, it also tracks your activity and notifies you when anyone responds to a post or article you have been participating in. This can be very helpful if you need to recall information weeks or months down the line. Just last week I looked up a YouTube link that I thought I had lost.

Once you have a profile started, head to mine: http://www.drivingsales.com/profile/24699 and click “Add Connection.” I don’t bite, I promise.

dScore

http://www.drivingsales.com/dscore

Throughout DrivingSales you will see that every member has a number beneath their name. That’s their “dScore” and, in short, it is a measurement of their contributions towards the community. Low number =  low contributions, high number = Rock Star. 

It’s relevant to time as well, meaning if a user goes dormant for a few days the score will begin to decline. This way, you know at any exact moment where a member stands in the community. 

What this means to you is that you can use dScore as a measuring stick when taking suggestions or advice from other community members. A high dScore would suggest they are a more trustworthy source. However, it’s just a guide; you definitely don’t want to discriminate against a great idea because of a number. 

You can see the full-length official description of dScore here: 

Forums

www.drivingsales.com/forums

The forums on DrivingSales make up the bulk of the activity on the site. The goal of the forums is knowledge: share and gain as much as you can. Think of it like a 20 Group that never ends, where you can “talk shop” with your colleagues till the cows come home.   

You will see a wide variety of topics in the forums: questions on how to solve a problem, industry news and events, general sales & service topics, opinions, best ideas, and so much more. For example, the current all-time most commented topic is “The Most Important Website Metric” and the most-viewed post is "Favorite or creative spiff ideas.”

It doesn’t always have to be “digital” – many conversations surround dealership operations, fixed ops, and day-to-day activities.

Forum Comments

Topics are just the beginning – what makes the forums so useful is the communication in the comments section. Depending on the subject matter, the comments from the other DrivingSales members can range from a lengthy debate to a brainstorming session.  

Sometimes conversations can get quite heated, especially when there is a stark difference of opinion. Yet, what is great about DrivingSales is that there is always a level of respect and professionalism amongst the members. So you can get right into a debate, but remember to keep classy.

Now, since this is a guide for new members, I will guess that you haven’t posted yet. What are you waiting for? Jump right in! Even if it’s just to introduce yourself. There are no dumb questions or comments. Everyone here is very supportive and eager to help. 

If you have a question to ask or have something to share, I highly encourage you to post away. Just click the “Ask a Question” button on the front page and you are off to the races. Or, if you want to start small, start commenting on the other posts.

Best Ideas

http://www.drivingsales.com/best-ideas

This section is a little bit hidden, but it should be a MUST-visit for all. It’s like the pizza place in the Cosmopolitan in Las Vegas – a little hard to find, but well worth it once you arrive.

Here you can find some fantastic ideas that others from the community have contributed, most with detailed descriptions, how-to guides, and statistical results of how well it worked. Not to mention, they are great conversation starters where the DrivingSales community can discuss how to take a great idea and make it even better.

If you have a great idea that you can share, I strongly encourage you to do so. The better we operate as an industry as a whole, the better off we all are. 

Blogs:

http://www.drivingsales.com/blogs

Blog articles on DrivingSales are separated into two sections: Exclusives, and Community Blog Posts. 

The Exclusives section are articles that are only available on DrivingSales, whereas Community Blog Posts are likely to be circulated elsewhere on the web.

Exclusive blog posts are important, because you know that they were written specifically for the DrivingSales audience. This drastically increases the relevancy for the reader, and should encourage you to read as many as you can.

Now, that isn’t to say that the Community Blog Posts are not good, as there are many articles I have found that were terrific. However, as time is a precious commodity, if you are looking to maximize your ROI on a short budget I would make sure to check the Exclusives section first.

Blogs: Topics

Blog articles on DrivingSales are separated into several sections:

• Accounting
• Finance & Insurance
• Fixed Ops
• General Management
• Marketing
• Internet/BDC
• Misc. Industry
• New Car, and
• Used Car

The categories make it easy to separate what you are most interested in.  For example, someone from the financial side of the business can hang out in Finance & Insurance, while an Internet manager can spend her/his time in Internet/BDC.

Since you are new to the site, don’t limit yourself to just the latest posts. Look back over the past few weeks and read everything that has gone on to really familiarize yourself with the community. 

Notification Settings

http://www.drivingsales.com/profile/preferences/settings_edit

Many users are not aware that you can tailor your notification system to suit your needs. By default, your account is set up to notify you of pretty much everything. However, if you are looking for a tailored-down experience, you can change any of the settings yourself.

News

http://www.drivingsales.com/news

http://www.drivingsales.com/news/add

Did you know you can share a news item? It’s super easy – just head to the news section and click on the “Share Auto News” section. Or, if you know that a particular story may create a debate, you can also share a news story in the forums.

The News section itself is a terrific place to stay informed. It’s curated by the community to provide the most specific automotive news for the community. You will always find a different perspective here, as the content is coming from individuals across North America. 

DrivingSales News

http://drivingsalesnews.com/

Speaking of news, DrivingSales also has its own content stream, including their very own reporter, Dave Martinson! 

DS News provides a steady stream of targeted automotive news and stories that you need to hear right away. It features the heavy-hitting stories from the automotive industry, including big news from the OEMs like recalls, new models, and marketing shifts. On the flip side, DS News is always up-to-date on the latest and greatest from the technology side, with features on things like the new Facebook Places updates and Google’s latest upgrades to mobile extensions.

Between DS News and the community-moderated news, you will be fully informed about everything that is happening in the automotive world. 

Vendor Ratings

http://www.drivingsales.com/ratings

One of the most important sections of DrivingSales is the Vendor Ratings. Here is where you can research all the vendors in our industry and get an unbiased view of how they stack up.

It is the first place you need to go when you are looking for a vendor solution, whether you are looking at mobile apps or fixed operations solutions.

DrivingSales Vendor Ratings are also fully transparent, and each rating is verified by a phone call from the DrivingSales team to ensure accuracy and honesty.

As Jared says:

We promise to provide a completely neutral platform for Dealers to anonymously rate and review their Vendors. We promise to verify that every single rating is accurate, trustworthy and from an actual dealership employee (we don't like cheaters). We promise to present this unbiased data to the entire industry via our website, DrivingSales.com, and our quarterly publication, the Dealership Innovation Guide.

Reading ratings is only half of the equation. It is also highly encouraged that you rate your vendors as well with your unique experiences. The more ratings in the system, the more value it holds for the entire community.

There are over 1,000 companies within the system already, and almost 20,000 reviews, so chances are your vendors are already included in the list. However, if you have a new vendor to add, it’s a very simple process. Just head to: http://www.drivingsales.com/ratings/companies/add and put in the details of the company.

Best of all, reviews are time-sensitive, meaning that they only last for 365 days. This ensures that if a vendor is beginning to decline in their quality, it will be reflected in their ratings. 

Is there anything I have forgotten? Have some other tips to share for new users? Share in the comments below!

Also, if you are new, use this as an opportunity to introduce yourself!

The DrivingSales Executive Summit 2014 is less than 80 days away, and Vegas can be an overwhelming experience if you aren't prepared. [Tweet This]  After attending for the past several years, I wanted to share the best tips and tricks I have accumulated. Whether this is your first DSES or you are a Vogelheim Veteran, hopefully you can use this advice and benefit from my experiences.

Arrive Early

Fly in to Las Vegas before DSES begins on October 12. There is nothing worse than missing a portion of the conference because of a flight delay. Besides, you deserve a break. Take the weekend off and get your Vegas fix before the conference begins.

Leaving the Airport

You can choose a taxi or a bus; both are available outside baggage claim.  The taxi ride is worth it, as the bus can take over an hour by the time it drops everyone else off. 

When taking the taxi, Nevada state law requires the driver to ask, “Do you want to take the tunnel, or the freeway?”

Choose the freeway. The tunnel is a longer route and will ultimately cost you more, even if the driver says otherwise.

FREE Hotel Upgrades

Ever heard of the Vegas $20 Sandwich trick?

Tipping the hotel's front desk staff means the chance of landing a cheap room upgrade. Twenty bucks for a room upgrade is a no-brainer, right?

The so-called “$20 sandwich trick” or “credit card sandwich” is common across the U.S., but in Las Vegas – a city that runs on tips – it's universal.

When checking in, sandwich a $20 bill ($50 or $100 will have a greater effect) between your identification and credit card and ask the front desk clerk, “Are there any complimentary upgrades available?” Smile, be polite and cross your fingers. 

According to FrontDeskTip.com the Bellagio has an 80 percent upgrade rate, so your chances are pretty good. 

Stocking Your Hotel Room

The hotel mini-bar is heinously expensive, and you will find yourself famished when you finally crash at the end of the night. After check-in, head to the Walgreens just south of Planet Hollywood. It’s a hike, but worth it. Spending $20 in Walgreens will save you at least $100 in mini-bar fees. Grab snacks, chips, energy bars, Red Bull, Gatorade, Tylenol, and anything else you may need for your Vegas experience. You can also get an 18-pack of PBR for around $14 if that tickles your fancy.

If you are someone that likes a cold beverage, buy a Styrofoam cooler (approx. $4). Stock it up with ice from the hotel, and you can guarantee a cold drink in your room at all times. Or grab a collapsible cooler and pack it into your suitcase. In a pinch, you can always use your bathtub as well.

Portable Power

If you take away anything from this list, it should be this tip. Before heading to DSES, buy yourself portable power for your phones and tablets. You WILL run out of battery between taking notes, live tweeting, adding people to LinkedIn, and checking the baseball scores (Go Blue Jays!). 

I pack myself two units: a pocket-sized Powerocks Super Magicstick for my phone, and a HyperJuice Plug for my tablet. These will be life-savers, and may even make you some new friends.

WiFi

WiFi systems have user limits, so if there are 100 spots and 500 people you need to be creative. It’s no one’s fault; it just is a reality. WiFi alone for a conference organizer costs $10,000-plus, so be patient.

To increase your WiFi chances, get to the conference early and secure a spot. As long as your device is running, the signal slot should stick. Make sure to share a hotspot with the people at your table.

If you are stuck and can’t find a signal, the Bellagio has a separate signal outside of the conference rooms that you can pick up. It’s limited speed, but will do the job. 

Breakout Sessions – Be Selfish

If you are attending DSES as part of a group, you will likely hear “Let’s divide and conquer,” which is a great aspiration but unrealistic in execution. There is so much information to take in that when it comes time to “share notes” with your colleagues afterwards, you may only get one or two items from the other sessions.

Go to the breakouts that are of the most interest to you, and concern yourself with making the most of your summit. [Tweet This] If you take great notes, share those and hopefully your colleagues will too.

Meet as Many People as Possible

The first year I went to DSES I went alone, and I wish I’d made more of an effort to reach out and meet people. Make a point of sitting down with strangers for lunch, in a breakout or, if you are a smoker (the smoking patio is located on the Bellagio balcony just outside main hall), you can meet some amazing people. 

One of the few people I met in my first year was Brian Armstrong (@BryanCarGuy) and he single-handedly made my first experience tremendously more enjoyable. 

Bring a handful of business cards, or better yet, include your Twitter handle on your name badge!

If You Can’t Book into the Bellagio

My 2nd year at DSES I stayed at Aria. It wasn’t until the third day that I found the “secret shortcut” between the two hotels. If you walk through the Vdara (in the CityCenter complex) there is a walkway that directly connects with the Bellagio. It saves a quarter-mile of walking and easily 20–30 minutes. 

If you aren’t a fan of the “Vegas smoke smell,” the Vdara is a non-smoking building and is easily the best hotel deal on the strip.

Taking Notes

DSES provides faaar more information than you can mentally retain, so taking notes is crucial. My brain is mush by the end, and without my notes I would miss out on some fantastic nuggets.  Get yourself a tablet so that you can quickly type, but more importantly, take photos of slides.

For note software I am a big fan of Evernote. It’s free, easy to organize, adding pictures is super easy and it even has an audio recording feature.

Wear Comfortable Shoes

Walking from one end of the Bellagio to the other is half a mile. Everywhere in Vegas “looks” close, but you can easily pack in 6–10 miles of walking in a day. It’s a great excuse to grab a new pair of shoes from the outlets anyways.

Planning Dinner

Especially at the Bellagio, book your reservations at least two days in advance. Eating dinner at 11 p.m. after a full conference day is not pleasant. You can always cancel if need be.

If you can’t make it into one of the restaurants at the Bellagio, here are my favorite nearby establishments:

Rao’s – Upscale Italian. The meatballs have been compared to Jesus by Scott Stratten @unmarketing, and for the vegetarians, the beet salad is to die for. Located at Caesar’s Palace.

Five50 Pizza Bar – In my list of top five pizzas I’ve ever had in my life. You can grab a slice, or sit down for a whole pie. Located in the Aria next to the Sports Book.

China Poblano – Chinese-Mexican Fusion. Small portions, big flavour. Small spot hidden at the back of the Cosmopolitan.

Mon Ami Gabi – Casual French. Try to grab a seat on the patio so you can look over the Bellagio fountains. The goat cheese marinara dip alone is worth the trip.

Hidden Pizza – Legitimately hidden. If you have been out late doing nefarious things, this is the holy grail of destinations. Also on my top five pizzas in my life. Slices only. Basic, New York style, but perfect for late evenings. Hidden on the third floor of the Cosmopolitan.

Plan in Advance

DSES is intense. Your three days will be jam-packed with keynotes, breakouts, working lunches and dinners and general mingling. It’s almost guaranteed, unless you come a few days early or leave Vegas a few days later, that you won’t have time to gamble, shop, or reenact The Hangover. 

Before you arrive, plan as much of the conference as you can as time flies quickly. Pick your breakouts, meetings and dinner reservations in advance so that you can focus on the conference once you arrive. 

Shopping

If you do book the extra time, shopping in Vegas is for walks of all life. If you want to drop $15k on a Rolex, you can at Caesar’s. If you are like myself and are not rollin’ in dough, you can spend an afternoon at the North Outlets. A $20 cab ride away, there is a plethora of shops where you can moderately blow your hard-earned bonus dollars. Pre-plan your shopping excursion at premiumoutlets.com.

More important than regular shopping, @BrentWees is running a shopping trip to Chapel Hats at the Venetian. Tweet him for details.

Afterparty

My favourite way to cap off DSES is with a little karaoke courtesy of Joe Webb @zonewebb and Shaun Raines @shaunraines.  What better way to relax after a mind-bending conference than to float your brain in suds and belt out your best rendition of “Don’t Stop Believing”.   Be on the lookout for info leading up to the after-party.  It’s where all the cool kids hang out.  

Heading Home

If you are exhausted, your brain is fried from information, and your soul feels only slightly dirty, then you know you had a fantastic DSES experience. The flight home can feel like New Year’s Day: you are kind of sad, but excited to get things started. Thankfully McCarren’s Terminal 3 is a great airport terminal. There are plenty of places to eat and ponder on everything that happened over your three days at DSES. 

If, however, you do get stuck overnight, don’t worry. Just do what this guy did: http://youtu.be/uE1ChQ8527I

Execution

DSES is only valuable if you execute. When you get home, take all your notes and create an action plan. Take 5–10 items, order them in order of importance, impact, resources and time and create an action plan to get them completed in 3–6 months.

You may want to rush and get everything started, but trust me, planning out what you have learned at DSES is the key to executing.

Extra Reading: The Vegas 30

Scott Stratten @unmarketing (DSES 2012) has a FANTASTIC podcast called The Vegas 30 (thevegas30.com), dedicated to experiencing the best of Vegas for those who are “too old to stand in line for a club, but too young to retire for the bingo hall.”

To date, there are 14 podcasts, all worthy of downloading and perfect for the plane ride while you are heading to DSES. Some of the topics include:

• Tips on attending Vegas conferences and trade shows
• Is Freemont Street worth the time?
• Off-strip entertainment

Check out all the videos and podcasts at: http://www.thevegas30.com/

​

Extra Reading: Anthony Bourdain – Parts Unknown

If you are a fan of Mr. Bourdain, you will know that Vegas and him go together like Frank Sinatra and Dean Martin. His travels in Las Vegas go from eating a hot dog in a gas station to eating the most expensive meal money can buy at one of Caesar’s villas. Definitely worth a watch:

http://www.cnn.com/video/shows/anthony-bourdain-parts-unknown/season-3/las-vegas/

What Have I Missed?

Tell me what I have missed in this list, what I am wrong about or what I’m SUPER-right about! Share your stories in the comments below.

Robert Karbaum arguably has the best name in the automotive industry. His combined experience over the past decade in E-Commerce and the automotive industry has allowed him to master the art of “AutoSpeak”; the ancient language that bridges the gap between internet geeks, the showroom floor and everything in-between. He manages the E-Commerce, Social and Digital Marketing operations at Weins Canada Inc. (formerly Don Valley North Automotive Group); a prestigious automotive group in Canada which includes the #1 volume Toyota and Lexus dealerships in the country. 

Catch him on Twitter (@karbaum) or DroppinBaums.com.

The DrivingSales Executive Summit 2014 is less than 80 days away, and Vegas can be an overwhelming experience if you aren't prepared. [Tweet This]  After attending for the past several years, I wanted to share the best tips and tricks I have accumulated. Whether this is your first DSES or you are a Vogelheim Veteran, hopefully you can use this advice and benefit from my experiences.

Arrive Early

Fly in to Las Vegas before DSES begins on October 12. There is nothing worse than missing a portion of the conference because of a flight delay. Besides, you deserve a break. Take the weekend off and get your Vegas fix before the conference begins.

Leaving the Airport

You can choose a taxi or a bus; both are available outside baggage claim.  The taxi ride is worth it, as the bus can take over an hour by the time it drops everyone else off. 

When taking the taxi, Nevada state law requires the driver to ask, “Do you want to take the tunnel, or the freeway?”

Choose the freeway. The tunnel is a longer route and will ultimately cost you more, even if the driver says otherwise.

FREE Hotel Upgrades

Ever heard of the Vegas $20 Sandwich trick?

Tipping the hotel's front desk staff means the chance of landing a cheap room upgrade. Twenty bucks for a room upgrade is a no-brainer, right?

The so-called “$20 sandwich trick” or “credit card sandwich” is common across the U.S., but in Las Vegas – a city that runs on tips – it's universal.

When checking in, sandwich a $20 bill ($50 or $100 will have a greater effect) between your identification and credit card and ask the front desk clerk, “Are there any complimentary upgrades available?” Smile, be polite and cross your fingers. 

According to FrontDeskTip.com the Bellagio has an 80 percent upgrade rate, so your chances are pretty good. 

Stocking Your Hotel Room

The hotel mini-bar is heinously expensive, and you will find yourself famished when you finally crash at the end of the night. After check-in, head to the Walgreens just south of Planet Hollywood. It’s a hike, but worth it. Spending $20 in Walgreens will save you at least $100 in mini-bar fees. Grab snacks, chips, energy bars, Red Bull, Gatorade, Tylenol, and anything else you may need for your Vegas experience. You can also get an 18-pack of PBR for around $14 if that tickles your fancy.

If you are someone that likes a cold beverage, buy a Styrofoam cooler (approx. $4). Stock it up with ice from the hotel, and you can guarantee a cold drink in your room at all times. Or grab a collapsible cooler and pack it into your suitcase. In a pinch, you can always use your bathtub as well.

Portable Power

If you take away anything from this list, it should be this tip. Before heading to DSES, buy yourself portable power for your phones and tablets. You WILL run out of battery between taking notes, live tweeting, adding people to LinkedIn, and checking the baseball scores (Go Blue Jays!). 

I pack myself two units: a pocket-sized Powerocks Super Magicstick for my phone, and a HyperJuice Plug for my tablet. These will be life-savers, and may even make you some new friends.

WiFi

WiFi systems have user limits, so if there are 100 spots and 500 people you need to be creative. It’s no one’s fault; it just is a reality. WiFi alone for a conference organizer costs $10,000-plus, so be patient.

To increase your WiFi chances, get to the conference early and secure a spot. As long as your device is running, the signal slot should stick. Make sure to share a hotspot with the people at your table.

If you are stuck and can’t find a signal, the Bellagio has a separate signal outside of the conference rooms that you can pick up. It’s limited speed, but will do the job. 

Breakout Sessions – Be Selfish

If you are attending DSES as part of a group, you will likely hear “Let’s divide and conquer,” which is a great aspiration but unrealistic in execution. There is so much information to take in that when it comes time to “share notes” with your colleagues afterwards, you may only get one or two items from the other sessions.

Go to the breakouts that are of the most interest to you, and concern yourself with making the most of your summit. [Tweet This] If you take great notes, share those and hopefully your colleagues will too.

Meet as Many People as Possible

The first year I went to DSES I went alone, and I wish I’d made more of an effort to reach out and meet people. Make a point of sitting down with strangers for lunch, in a breakout or, if you are a smoker (the smoking patio is located on the Bellagio balcony just outside main hall), you can meet some amazing people. 

One of the few people I met in my first year was Brian Armstrong (@BryanCarGuy) and he single-handedly made my first experience tremendously more enjoyable. 

Bring a handful of business cards, or better yet, include your Twitter handle on your name badge!

If You Can’t Book into the Bellagio

My 2nd year at DSES I stayed at Aria. It wasn’t until the third day that I found the “secret shortcut” between the two hotels. If you walk through the Vdara (in the CityCenter complex) there is a walkway that directly connects with the Bellagio. It saves a quarter-mile of walking and easily 20–30 minutes. 

If you aren’t a fan of the “Vegas smoke smell,” the Vdara is a non-smoking building and is easily the best hotel deal on the strip.

Taking Notes

DSES provides faaar more information than you can mentally retain, so taking notes is crucial. My brain is mush by the end, and without my notes I would miss out on some fantastic nuggets.  Get yourself a tablet so that you can quickly type, but more importantly, take photos of slides.

For note software I am a big fan of Evernote. It’s free, easy to organize, adding pictures is super easy and it even has an audio recording feature.

Wear Comfortable Shoes

Walking from one end of the Bellagio to the other is half a mile. Everywhere in Vegas “looks” close, but you can easily pack in 6–10 miles of walking in a day. It’s a great excuse to grab a new pair of shoes from the outlets anyways.

Planning Dinner

Especially at the Bellagio, book your reservations at least two days in advance. Eating dinner at 11 p.m. after a full conference day is not pleasant. You can always cancel if need be.

If you can’t make it into one of the restaurants at the Bellagio, here are my favorite nearby establishments:

Rao’s – Upscale Italian. The meatballs have been compared to Jesus by Scott Stratten @unmarketing, and for the vegetarians, the beet salad is to die for. Located at Caesar’s Palace.

Five50 Pizza Bar – In my list of top five pizzas I’ve ever had in my life. You can grab a slice, or sit down for a whole pie. Located in the Aria next to the Sports Book.

China Poblano – Chinese-Mexican Fusion. Small portions, big flavour. Small spot hidden at the back of the Cosmopolitan.

Mon Ami Gabi – Casual French. Try to grab a seat on the patio so you can look over the Bellagio fountains. The goat cheese marinara dip alone is worth the trip.

Hidden Pizza – Legitimately hidden. If you have been out late doing nefarious things, this is the holy grail of destinations. Also on my top five pizzas in my life. Slices only. Basic, New York style, but perfect for late evenings. Hidden on the third floor of the Cosmopolitan.

Plan in Advance

DSES is intense. Your three days will be jam-packed with keynotes, breakouts, working lunches and dinners and general mingling. It’s almost guaranteed, unless you come a few days early or leave Vegas a few days later, that you won’t have time to gamble, shop, or reenact The Hangover. 

Before you arrive, plan as much of the conference as you can as time flies quickly. Pick your breakouts, meetings and dinner reservations in advance so that you can focus on the conference once you arrive. 

Shopping

If you do book the extra time, shopping in Vegas is for walks of all life. If you want to drop $15k on a Rolex, you can at Caesar’s. If you are like myself and are not rollin’ in dough, you can spend an afternoon at the North Outlets. A $20 cab ride away, there is a plethora of shops where you can moderately blow your hard-earned bonus dollars. Pre-plan your shopping excursion at premiumoutlets.com.

More important than regular shopping, @BrentWees is running a shopping trip to Chapel Hats at the Venetian. Tweet him for details.

Afterparty

My favourite way to cap off DSES is with a little karaoke courtesy of Joe Webb @zonewebb and Shaun Raines @shaunraines.  What better way to relax after a mind-bending conference than to float your brain in suds and belt out your best rendition of “Don’t Stop Believing”.   Be on the lookout for info leading up to the after-party.  It’s where all the cool kids hang out.  

Heading Home

If you are exhausted, your brain is fried from information, and your soul feels only slightly dirty, then you know you had a fantastic DSES experience. The flight home can feel like New Year’s Day: you are kind of sad, but excited to get things started. Thankfully McCarren’s Terminal 3 is a great airport terminal. There are plenty of places to eat and ponder on everything that happened over your three days at DSES. 

If, however, you do get stuck overnight, don’t worry. Just do what this guy did: http://youtu.be/uE1ChQ8527I

Execution

DSES is only valuable if you execute. When you get home, take all your notes and create an action plan. Take 5–10 items, order them in order of importance, impact, resources and time and create an action plan to get them completed in 3–6 months.

You may want to rush and get everything started, but trust me, planning out what you have learned at DSES is the key to executing.

Extra Reading: The Vegas 30

Scott Stratten @unmarketing (DSES 2012) has a FANTASTIC podcast called The Vegas 30 (thevegas30.com), dedicated to experiencing the best of Vegas for those who are “too old to stand in line for a club, but too young to retire for the bingo hall.”

To date, there are 14 podcasts, all worthy of downloading and perfect for the plane ride while you are heading to DSES. Some of the topics include:

• Tips on attending Vegas conferences and trade shows
• Is Freemont Street worth the time?
• Off-strip entertainment

Check out all the videos and podcasts at: http://www.thevegas30.com/

​

Extra Reading: Anthony Bourdain – Parts Unknown

If you are a fan of Mr. Bourdain, you will know that Vegas and him go together like Frank Sinatra and Dean Martin. His travels in Las Vegas go from eating a hot dog in a gas station to eating the most expensive meal money can buy at one of Caesar’s villas. Definitely worth a watch:

http://www.cnn.com/video/shows/anthony-bourdain-parts-unknown/season-3/las-vegas/

What Have I Missed?

Tell me what I have missed in this list, what I am wrong about or what I’m SUPER-right about! Share your stories in the comments below.

Robert Karbaum arguably has the best name in the automotive industry. His combined experience over the past decade in E-Commerce and the automotive industry has allowed him to master the art of “AutoSpeak”; the ancient language that bridges the gap between internet geeks, the showroom floor and everything in-between. He manages the E-Commerce, Social and Digital Marketing operations at Weins Canada Inc. (formerly Don Valley North Automotive Group); a prestigious automotive group in Canada which includes the #1 volume Toyota and Lexus dealerships in the country. 

Catch him on Twitter (@karbaum) or DroppinBaums.com.

IKEA has announced a new limited edition PS (Post Scriptum) 2014 line designed for the new urban hipster. This new line was derived from an IKEA-commissioned market study that identified 1 in 5 of urban dwellers now live in a space smaller than 323 square feet. The collection is also designed around the "on the move" principal, which allows for all each piece of the 51-strong collection to be easily transported.

"We were thinking about the needs of the young urban generations that often forgo space to follow their dreams in the big cities," said Gemma Arranz, interior design manager for Ikea UK and Ireland.[i]

Why this is important for us is that the collection is designed to be transported by foot, bike or public transit and not by vehicle.

This concept speaks to the millennial data we have been listening to for years but never paid much attention to. After all, worrying about the next generation of buyers is a distraction from hitting this month’s sales target, right?

As a millennial myself (very top-end) I can confirm that we are on the move, but in line with IKEA's new collection, we are too broke to move out of our rented basement apartments. In fact, looking around my close circle of friends, I can count on one hand how many of us own our own vehicle. None of them were purchased new, and almost all are over 6 years old. What is more alarming is that less than 60 percent of my fellow urbanites have a driver’s license, let alone their own set of wheels.

Now, to be fair I do live in downtown Toronto, where even our flawed public transit system can handle the majority of day-to-day transportation. However, it doesn't change the fact that is just over the horizon: millennials will be a challenge sooner than later.

IKEA is heading down the millennial road right now, other major brands and industries are soon to follow. What are we doing as an industry to compete? Just look at the commercial they released to promote this new line. Notice anything missing?

IKEA has announced a new limited edition PS (Post Scriptum) 2014 line designed for the new urban hipster. This new line was derived from an IKEA-commissioned market study that identified 1 in 5 of urban dwellers now live in a space smaller than 323 square feet. The collection is also designed around the "on the move" principal, which allows for all each piece of the 51-strong collection to be easily transported.

"We were thinking about the needs of the young urban generations that often forgo space to follow their dreams in the big cities," said Gemma Arranz, interior design manager for Ikea UK and Ireland.[i]

Why this is important for us is that the collection is designed to be transported by foot, bike or public transit and not by vehicle.

This concept speaks to the millennial data we have been listening to for years but never paid much attention to. After all, worrying about the next generation of buyers is a distraction from hitting this month’s sales target, right?

As a millennial myself (very top-end) I can confirm that we are on the move, but in line with IKEA's new collection, we are too broke to move out of our rented basement apartments. In fact, looking around my close circle of friends, I can count on one hand how many of us own our own vehicle. None of them were purchased new, and almost all are over 6 years old. What is more alarming is that less than 60 percent of my fellow urbanites have a driver’s license, let alone their own set of wheels.

Now, to be fair I do live in downtown Toronto, where even our flawed public transit system can handle the majority of day-to-day transportation. However, it doesn't change the fact that is just over the horizon: millennials will be a challenge sooner than later.

IKEA is heading down the millennial road right now, other major brands and industries are soon to follow. What are we doing as an industry to compete? Just look at the commercial they released to promote this new line. Notice anything missing?