We ask this question off the back of our last article; The Fatal Mistake Made By Franchised Dealers Over The Last 10 Years? When we highlighted the risks posed by the tech disruptors targeting both the new car and used car markets, and to be honest, we don’t know why this has been allowed to happen!
In fact we would go one step further; we don’t understand how the new breed of tech based market disruptors can have any business at all, but it would appear that they, (the tech based market disruptors), have identified the weaknesses that exist in manufacturer trading models, (as well as those within their franchise dealer networks), and are targeting them.
They have seen the weaknesses that exist and have adopted the business model of one of their most successful forefathers, Jeff Bezos, the man who launched Amazon; whose, (for those who don’t know), most famous business quote is; “Your Margin Is My Opportunity!” And on the face of it both manufacturers and their franchise partners seem happy for the current dangers of supporting the businesses who are actually targeting their own trading model, to carry on; so in effect franchised dealers are building the businesses of the tech disruptors rather than their own.
Now, and having gotten a foothold in the new car market, many now look to target the used car market as well, along with a new breed of used car market disruptors, and this should be deeply worrying to franchise dealers and their parent manufacturers.
We have been writing about the dangers posed by the rampant growth of the tech based market disruptors for 2 years and find it hard to believe that any franchised dealership, or the parent manufacturer, would actively like to foster a business and stock supply relationship with the tech based market disruptors, but let us say at the outset; this article is by no means been written to criticise the decision any franchised dealer groups may have made, to build a trading relationship with the tech based disruptors, if this is what you feel is best for your business model.
So how have they been allowed to gain a foothold in our market, when combating the threat is, (on the face of it), so easy; and we say easy, because without access to stock they have no business, but whilst they have access to stock they are able to change the purchasing perceptions of your customers, and believe us when we say this, they will be shaping perceptions around their business aims, not yours. So our most valuable piece of advice to all franchised dealers in the UK is;
Do Not Allow The Tech Based Disruptors To Have Access To Your New Or Used Car Stock!
Unfortunately though for many of you reading this article, this will be more difficult than you may imagine and as we are used car business development professionals, let us look at the problems this may present in the used car arena, because in order to restrict access to used car stock, you have to have a business and a franchise dealer network that is capable of selling used cars in the volumes required, to ensure that you or your franchise partners are not feeding the businesses of your competitors.
This will require a network of franchise partners that are successful at used car retailing and growing used car businesses, including your own, and for many of you reading this there will be much work to be done, if you are to develop a used car business that is successful at selling used cars.
It should come as no surprise that all manufacturers and PLC’s will have the franchise dealer networks that they deserve; so if there has been no investment in used car business development and personnel training programmes over the past decade, it really should come as no surprise that franchise partners are struggling for answers, when it comes to developing the used car businesses you now require to support your current trading model.
And with little appetite from either franchised dealers or manufacturers to go out and employ the best used car talent as well, there is a dearth of genuine used car talent within franchise dealer networks and the organisations of the manufacturers; especially those with the ability to join up the operational dots and develop the strategies required to be successful in the used car market of today.
So where to start? Well a lot depends on what you already have in place but a quick list of the areas of your business that will require the very best and specialised attention are as follows;
- Look to identify and understand the used car research and decision making journey that your potential customers will go on.
- Support the manufacturers approved used car website and only advertise used cars here. This will enable your parent manufacturer to build your used car offering and ensure that you all have the SEO strategies in place to ensure that your own used car offering will rank number 1 in all the relevant customer searches.
- Do not allow independent businesses to advertise your used car vehicle parks and/or used car stock holdings.
- Invest in all that is required to ensure that you have a used car business that is capable of retailing used cars in the volumes required.
Now of course the above is only scratching at the surface, but in the interests of brevity, it includes everything that will be required, (as a minimum), if you are to succeed. But be in no doubt, developing the professionals required will be at the heart of your success, in other words, stop looking to leverage more technology and start developing your people; a subject we covered in our recent article; A Pivotal Piece Of Used Car Business Development Advice!,,,, And For Free!
Those looking for guidance on the skill-sets required by those who are going to be responsible for the delivery of your continued success in the used car market, both within your own organisation and the businesses of your franchise partners, can find a quick outline in our article below;
Do Successful Used Car Professionals Exist For Franchised Dealers?
Now we appreciate that finding genuinely successful used car professionals and building successful used car businesses, is very difficult for both manufacturers and their franchised dealer networks but luckily help is at hand. If this post has resonated with you and you would like to know more about our used car business development consultancy programmes, because you would like to partner with an organisation of professionals who have faced the challenges of fast paced evolutionary markets and know how to develop a successful and profitable used car business on your behalf, (in order to keep your new car and total business objectives growing and on track), then we would very much like to hear from you.
The owners of Autoformance have owned and run successful used car operations and been at the forefront of the development of approved used car programmes for a host of franchised dealer groups and manufacturers. For an exploratory conversation regarding our services and how we can develop bespoke used car business development and consultancy programmes on your behalf, please do not hesitate to contact one of our Used Car Business Development Directors; Andrew Banning at ajb@autoformance.com or Malcolm Thomas at mgt@autoformance.com
Alternatively please feel free to call me on 0044 7796 260261.
For more information about our services please visit our website at www.autoformance.com
Andrew Banning.
Used Car Business Development Director.
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