Why is GM really getting into the DMS business?

[nccarsman]

For starters, I am not a Reynolds or ADP flag waver. I think we have invested a lot in computers and everyone is making a buck off of the Dealer's inexperience. Now GM is jumping in with IDMS - and One Source. What is their game? Don't tell me it is for my good.... If GM wants to help they should focus on the product.

So GM is going to lower my price and give me higher integration. Through all of the letters and videos, I have not seen any details that describe the integration. The only thing I can conclude is that they want my client data - I feel like GM is saddling me up for a ride...

So the system might save me about $1,000 (although I have not seen a quote), but GM could save me 5 times by not sticking me with their excess inventory. Oh wait, one benefit is is that my DMS payments come out of my open account giving me no ability to without payment. Who is behind this, Tony Soprano?

I could ask a number of questions, but I would really like to know WHAT INTEGRATION DO I GET THAT I DO NOT HAVE TODAY? How does it help me sell more cars and get my gross profit back? Don't tell me this is about cost savings, because 20 years with GM has convinced me that GM is incapable of saving me money.

Since I would buy this system from GM and not Reynolds, how much are they marking it up? What is GM's profit?

[texaslp]

I haven't done a lot of research on this yet since our next renewal date is few years away, but everything I'm seeing in the way of notices and such, assures me that if I don't go with IDMS, I will not be missing out on anything-so I have the same question(s) that you do-so what is the advantage?

I agree with your point also about the biling. I hate trying to get money back from GM when something is billed wrong on the open account.

[KevvyG]

I have often thought of this. I thought a group of dealers could win a class action suit based soley on how much they rape us for their "hardware solutions". More times than not, I have seen their hardware solution be putting their sticker on someone elses hardware and charging 3, 4 or 5 times more than it is worth. I had a DMS who shall remain nameless try to sell me a 24-port switch for...ta-da!!...$13K!! You know where I told them to stick that offer...

[aksales]

Howdy,
I figured I would chime in here since the last topic on IDMS "disappeared". Evidently somebody got all worked up over it and I can only think of three entities that would have pulled it... guess who those are....
From what I am seen on this board and hearing from other dealerships is that you will be hard pressed to find a discount and in some cases other dealerships are finding that the IDMS solution comes with a premium price for the same setup.

Now dont get me wrong, I am not saying IDMS is evil or anything. I have personally dealt with everyone involved, and not. All the DMS solutions have pluses and minuses, thats just how it goes. What gets me going is how you can have people discussing them in a forum specifically tailored to that exact purpose and then when someone does not like the tone of the posts they pull it. Who is running dealersedge anyway?


------------------
Jason Wilhelm
IT Support Specialist
Alaska Sales and Service
www.aksales.com

[scotstrong]

Jason,

You need to read the post from Jim Muntz in the other IDMS thread; and you will understand what happened and hopefully why. I cannot fault them for erring on the side of impartiality.

Scot Strong

[David Cates]

A couple of things related to posts on this thread -

I don't think dealers qualify as "inexperienced" anymore. Most are on their 4th or 5th systems and should have a pretty good idea of what is going on in the industry in regards to DMS providers. It is a vital part of their business, so I would think it would be important enough to understand. I don't think it is fair to put all the agonies of the industry's technology issues all on the hands of the DMS providers.

As for hardware, I agree in the past some of the pricing seemed out of whack compared to what you might see in the ads in the Sunday paper. But it was a different environment, both from a technology standpoint and from a company standpoint. The DMS pricing includes things like someone coming out and installing it (try getting Microsoft or Cisco to do that) and other conveniences only the large vendors can provide. it costs money to have people, trucks, gas, training, etc.. to be able to do this, and that is part of the costs when you purchase from a DMS provider. I would be willing to bet it probably is financially smart in many cases to pay more to have that kind of service and support.

Today however, it is changing, and DMS providers are becoming more flexible in regards to what hardware you can use. Dealers can purchase their own PC's and even some of their own peripherals and network gear, as long as it is something that can and will be supported by the provider. However, in my experience, dealers have looked at the options and decided it is just as financially feasible to purchase it from the DMS provider and have them install it, support it, etc..

Lastly, a point I know may not be popular here. It is easy to trash the large providers like ADP, R&R, UCS, etc.. but it is also easy to forget that dealers have made a lot of money over the last 20+ years with their help, side by side in many cases, field service people sleeping on couches to make sure systems stay up or get back up, personnel in the dealership to help with tough situations, people in the dealership at no cost to provide training to new employees, etc.. when in fact there probably should be a cost. I could go on and on. I just think there has been a partnership over the years, and at times people just tend to think that these vendors have just been there to take advantage of dealers.

I don't believe that has been the case at all.

[nccarsman]

I agree that Dealer's have become more sophisticated over the years. I am sure you would agree that after 4 to 5 generations any good business would recognize the need to learn. My point is that while we were in the dark, there was a premium paid for our ignorance. I am not holding a grudge, it just took us longer to come around.

As far as hardware, you make good points. While new servers drove major upgrade decisions over the years, the hardware seems to last longer now than it used to. And now so many dealers are going online ,making that upgrade a thing of the past. I can't believe that I can even hold a conversation about Cat5, IP Switches and Broadband. I sure hope IDMS doesn't make those decisions for Dealers as well.

Still, I do not know what makes IDMS different. Initially, the lower price was the news grabber, GM and R&R seem to be backing off the huge cost savings and now going back to the "higher value" statement. Can anyone tell me what the higher value and tighter integration means? Does anyone have examples? Isn't it just my same 7 year old ERA system?

[nccarsman]

I guess there is no special integration.

[saturn01]

IDMS was initiated on behalf of the GM National Dealer Council, GM is not marking up IDMS, GM is acting as a volume buying agent and handles billing, under the IDMS agreement GM does not have access to any dealer data and the IDMS vendors responsibility is to ensure that GM can not get to the data.

Integration: GM is developing a series of dealer WorkBenchs to make it easier to do business with GM, the IDMS vendors are working onsite to assist GM in developing integration to the future WorkBenchs and other GM applications.

The IDMS price is more of an "all in price", including a comprehensive list of applications such as CRM, Service price guides, including all data feeds such as LTG, Parts Master, GM integration to (WINS, RIM, Rapid, CDR, FACTSII), so the price is similar to what a dealer would see on their monthly invoice.

Hope the helps

[questionman]

Boy am I excited GM is again looking out for my needs again!!!!

I am certain the fact that since day one all Saturn dealers have been on a GM required DMS system that the thought is GM can duplicate the financial success that Saturn has been for GM.

Do not know what occurred that ADP lost out to R&R but I am certain there are varying stories to it. From Matt Parson's posts it appears ADP does not understand, but we have all lost deals to the guy down the street that we could not make sense of.

What really does not make sense is the "other" IDMS provider that GM selected - Quorom. I have seen them at NADA and heard some about them but the are a very small player from what I have been able to find out. It appears that at this time Quorom cannot deliver "RIM" (not sure but I believe that is correct). If they are going to be an IDMS it would seem they would have that available.

Hope by the time my ADP contract is up this all makes some sense.

Lets go sell something!!!!