Observations of various web stuff

[sallen1]

Quick observations on things with respect to the crash of CarOrder.com. Remember them? They were going to buy dealerships and sell cars on the internet, hopefully to circumvent state laws prohibiting non-dealer sales by becoming dealers themselves. Guess it didn't work that well (article on Dealer's Edge Home page says it all).

Why did it not work? Seems like a good idea: Buy underperforming dealerships to get inventory and use the web to sell that inventory. I think the real problem is lack of long term commitment and understanding of the retail business in general. How much money was wasted on this effort?

What about other internet schemes? I get propositioned every week by someone with a better mouse-trap and that I'm stupid to not see the vast opportunity. Well, the only opportunity I see if for that (insert: referal company, lead generation source, priceline.com, carsdirect.com, etc.) to make money off of me. Just look at most of the posts in this forum (Muntz will appreciate this): Automotive internet consultants trying to promote one thing or another. The people that come to my store have little car experience, little business experience and are paid by stock-options in soon-to-be-annouced IPO's. Get serious people, the market has changed and that IPO isn't happening.

Don't get me wrong just because I'm critical of this web-business. But I don't see the main source of your business coming directly from the 'net, however a method to handle the 'net shopper should be employed. Also, don't spend a bunch of money on third-party companies, most of them won't last the next 12 months.

My opinions, of course.

Scott

[jimmuntz]

Scott-

I do appreciate you comments- Right on and well said!

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Jim Muntz
Publisher WD&S Publishing
jimmuntz@dealersedge.com
Phone 800-321-5312
FAX 800-314-4770

[EFConn]

The Shakeout of the various Internet Sales Models will be somewhat slow in my opinion. Eventually the Referral model will be imbedded in most all OEM's DCS functions. The bulk of On-line eTail Sales will come from the new alliances with the Mega Dealer Bricks tied to eTailer Clicks. (With CarOrder out, the Big 3 eTailers now clear. Autonationdirect.com, Carsdirect.com with Michael Dell and United Auto/Penske and Greenlight.com with Amazon.com, Sonic Auto, Asbury Auto and Hendrick Auto tied in)

The catch 22 for traditional dealers may be the rising impact of Legislation around Franchise agreements. Dealers have to protect their franchises and livelyhoods, but some firms like the CATO Institute will argue that "Franchise Squatting" makes Dealers against Customer Value and this could further tarnish public sentiment for Car Dealers.

This will have to be a fine line to walk in the future for the Traditional Car Dealer.

[Results]

To sallen1- Dog gone it. I was in full agreement with you until you reached the part of other Internet Schemes.

I am a consultant. When I was selling I thought of consultants as guys that couldn't sell cars.
I don't have a better mouse trap, I don't even have plans of going public.

What I do have is my own experience moving metal, seeing tail lights or what ever you want to call it.
Then during the period of a week I will walk into 10 stores, while I am there I seek new and inventive ways to use the Internet to sell cars, parts, motor homes,tennis balls.
Most of the time I am reminded of the basics of selling cars. Yes there are some new mouse traps out there. Yes your right most of the people coming in to sell them to you do not really have them.
Okay - What I have and a lot of my competion has is exposure to several different successful selling programs.
Should we dare to try to sell these ideas to you, and the other stores, yes as long as we really improve your closing ratios, increase your leads, and bottom line make the store more money than what our services cost.

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Results
Mike Stinson
www.results@rintuit.com