Internet New Car Sales 2, Judgement Day! (UK Manufacturers Article)

Apologies for the shameless play on a theme but I thought it appropriate for this article, the requested and therefore the change in the planned article for this week, after the response to my last article; “Wow An Internet Company Got Me Over £5,000:00 Off My New Car!”

As the post has generated so much interest and debate let me try and deal with your questions from the perspective of, if I were running one of these businesses, and where I would be planning to take my business in the long term. In order to do this and to bring some clarity to their intentions and their business model, and therefore the dangers that they pose to your traditional trading model, we must start thinking like the people owning and running these businesses because, once you do this, you will begin to see what they are doing and where these business models may be heading.

So let’s do some role play, with me in the role of the owner of an internet based independent new car supplier; and let’s imagine that you are quizzing me on my intentions and the long term intentions that I have for my independent internet based new car supply business.

Well the first and most important thing to grasp is that, unlike you, I am not a Motor Trade or Automotive Sector professional, I am a Technology professional! This is the most important thing to grasp because, in fact, I am the proverbial wolf in sheep’s clothing and in disguising my business intentions behind the facade of being just an automotive business, I am hoping that you will think of my business in the terms of an automotive business, therefore underestimating the long term danger I pose to your current business.

My business heroes are less likely to be Henry Ford, Ferdinand Porsche and Enzo Ferrari, they are more likely to be the owner of Amazon, Jeff Bezos; I will have read his books and digested his quotes and the one that I will hold most dear to my heart is “Your Margin Is My Opportunity!”

Before launching my business I will have studied in-depth the story of Virgin Cars to understand where it all went so wrong for such a well-known brand; I will have learnt from the mistakes of trying to own their own stock holding, opening dealerships, employing staff under a dealership structure and of effectively being a currency business disguised as an automotive business. I will have watched the rise of Mark Zuckerberg and his company, Facebook and I will have learnt from watching businesses like these that “Data Is The New Gold” and that in fact, all I have to do over time, just like Amazon and the many other successful technology businesses, is to change the purchasing habits of consumers and harvest their data!

I will hope that you will think that without access to stock my chances of success are slim, because you are thinking like an automotive professional, and after all just how can I have a successful automotive business with no access to stock. Now being a Machiavellian technology professional I will allow this situation to play out because while you are fussing about this, I will be targeting the most precious commodity of all, your customers.

Why will I do this, well it is important to remember that “Perception Is Reality” so I will engage in a business of changing the perception of reality with consumers whilst harvesting their personal data, and with the current furore surrounding Cambridge Analytica and Facebook, we should no longer be in any doubt about, (with GDPR legislation also due in May), how powerful companies with access to authorised levels of personal data are!

So my business thus far, and let’s assume I am running one of the many new internet based independent new car suppliers, has been involved in targeting the consumer, because the consumer is the key to my success. I am going to change the perception of the consumer and make my business the easily accessible, independent and trusted place to go to for all things to do with the purchase of my new car, because I don’t need a stock holding, (this is where Virgin Cars went wrong), what I need is customers and their data, because once I have this I can begin to use the information freely supplied by consumers, to take all the guess work out of planning the success of my new business.

You see in the eyes of the consumer, I am going to be seen as a “Knight In Shining Armour” using new tech platforms to supply good old fashioned content material and advice on how to get the best deal on, and to take all the hassle out of, buying my new car. And for those of you unaware of the power of Content Marketing, of the opinion that it is old fashioned, I will think how lucky I am that you haven’t read, studied or understood just how many of the successful brands in the world today have been built using content marketing to win the trust of consumers; I will hope that you never study the story of how a blacksmith in America, John Deere, used content marketing to build one of the biggest tractor manufacturers in the world; in fact the publication he launched for this very purpose, The Furrow, is still published today, over 120 years after its launch.

By now I have no doubt that you will be a little dazed and let’s assume that you, as the manufacturer, go on to ask me how I have done this. I will tell you that I have realised that I need to target the weaknesses in your business model, and in doing so I have learnt the following.

• Customers, in the main, do not like the current process involved in buying their new car.
• Your franchised dealer networks are not striving to go out and get the best sales people and build the best sales teams they can, regardless of the cost!
• Customers don’t like haggling on price.
• Customers live very busy lives and don’t want to spend their free time visiting dealerships.
• There is a big demand for impartial advice on the dizzying array of models available for sale.

So for my business to succeed I have to become the trusted business within the automotive sector, offering impartial advice for free and not to be charging the customer for this service; in effect I need to become the trusted price comparison site for car purchases, but on steroids!

So how have I done this; well I will tell you that very quietly I will have been sending out these messages to consumers, in order to harvest their data, (we will come on to the real importance of this later), and to change their perception of reality. I have built my website platform and invested massively in my content messaging. Knowing that video is the future, I have launched my own TV Channel on YouTube to review cars, (Top Gear style), to offer free advice to consumers on the cars that they should be purchasing.

I have secured additional funding to advertise on TV, building the perception of success with the customer. These are very powerful subliminal messages of success, no one who advertises on TV is seen as unsuccessful in the eyes of the customer. And this is my play, because it is all about funnelling customer traffic to my website, where the subliminal messages that continue to change the perception of customer can continue.

Here they will log on and the perception will be that we have access to over 60 manufacturers, when I don’t necessarily have to have dealt with all of them or necessarily have access to any discounts. I will also name supercar manufacturers, everyone from Bugatti to Pagani, again because it is all about perception. I may not be able to offer any discounts on these products, I may just have some reviews, but the customers perception is already being changed; “Wow, these people deal with Bugatti!”

I will then have help and impartial advice on all the aspects associated with buying your new car and I will be seen as impartial; again remember I am in the data collation business and I need to build trust with consumers. So this information will be supplied free of charge to consumers visiting my site, fully in the knowledge that this separates my business from yours.

From there it will get more undermining because I will have carefully placed subliminal text within the most visited sections of my website, in order to continue to change the perception and the purchasing behaviour of your customers; I can do this because I am a technology professional and I measure all traffic to my website and the most visited sections and topics, so by analysing this traffic I know exactly where to continue with my messaging, in order to continue the process of building trust with consumers.

To demonstrate this fact, let me outline below some of the text I will use and what the subliminal message to the consumer will be.

• “Our Dealers;” I will have a heading involving my company name; This is intentional and a clever play on words to build the perception that this is my network and that we are in control.
• We Will Only Use Authorised Dealers; Here my message is to reassure the consumer that all cars will come from authorised outlets of the manufacturer.
• Haggling Is Overcome, Our Dealers Are committed To Offering Their Best Price; This statement is designed for 2 purposes, firstly to reassure the customer that we have removed the nasty process of haggling and to subtly build the perception that we are in control, we are the consumers friend!
• We Have Changed The Way People Buy Cars! We have grown so powerful and are so trusted by consumers that we are now able to drive the change required by consumers, within the industry.
• We Don’t Charge You Anything For Our Services; A very important message as we are now perceived as having nothing to sell, in fact we openly advise that we get our fees from the dealers, who have to use us because, (and remember), “We Are Changing The Way People Buy Cars.” We are on the side of the consumer!
• Help Available In Any Disputes; this is a very important heading and the text that follows will leave the consumer in no doubt that we will intervene should there be any discrepancies when dealing with the franchised dealership concerned. Again compounding the perception that we are in control of the dealer networks and there to support the consumer at all times.
• We Measure The Quality Of The Service You Receive; This is a very important heading and the text that will follow this will be designed to give the impression that we will not take it for granted that all manufacturer approved dealers will come up to the higher standards that we require. In fact the underlying message will be that we will set the standards required and that any manufacturer approved dealers not achieving our standards will not be allowed to be a member of “Our Approved Network Of Suppliers!” Do not lose sight of the fact here that I am also undermining you as the manufacturer.
• We Will Not Pass On Your Data; This is a very important message on 2 counts, firstly it reassures the consumer that their data is safe with us, which secondly makes them more likely to give us their data, which we require in order to continue to build our business. And remember, we do this by building the perception of being the consumers trusted friend.

So at this stage you might be a little worried or you may decide that as a manufacturer, you want to build a relationship with my business, which will be your call. But in case you don’t, I will begin phase 2 of my operation which, having now targeted your customers, will be to begin to subtly drive a wedge between you and your franchise partners, by sending the messages to them required, in order to change their perception, and convince them of the need to deal with us because guess what, we have the customers!

And if all this wasn’t enough, here comes the genius in my plan; you have heard me discussing GDPR, (or General Data Protection Regulation), which is a piece enforceable legislation from 25th May 2018 and in short it is an extension to the current data protection laws. However, and here’s the catch, part of this legislation deals with the sending of electronic marketing messages and the “Opt Ins” required from the recipient, in order for you to legally market your business to customers via electronic platforms, email etc.

Now being a technology professional, I have all the “Opt Ins” required under the new GDPR Legislation in order to continue to “Sweat My Data Assets” and advertise my business to the huge data base that I have compiled since I launched my independent internet new car supply business. Obviously I can’t comment on the amount and quality of the data either you or your franchised partners hold, but my gamble is that it will take you years to catch up and have the access to data that I enjoy, and that what data you do hold, may not even be GDPR compliant, in terms of utilising it for electronic campaigns.

This of course will put you at a tremendous disadvantage and during this time, guess what, I have moved on and started the process of changing the perception of many other areas of your business model, by posting content and offering free and trusted advice on all aspects of the car purchasing process.

This will include finance, the purchasing of used cars and the disposal of your current car/part exchange; so you see what started as a data collection and the manipulation of markets business, under the guise of a new car supply business, actually wants all the parts of your business where there are great revenue streams to be enjoyed. And the final irony; whilst I am driving my business towards the planned successful conclusion, I will not be opening any dealerships or employing any dealership structures of staff; why should I when I can continue to use yours?

Thus the comparison to the Terminator films in the title for this article, where technology ends up destroying the world we once knew! Not sounding so farfetched at the moment is it?

Now in finishing I add the caveat that it is not for me tell any of you how to run your businesses; I am an Automotive Sector Consultant and our business builds business development and sales training programmes for manufacturers and their dealer networks. We are avid bloggers in the Automotive Sector and those of you who have requested Used Car/Market Strategy Discussion and Proposal Documents from us in the last 6 months, know that we tell it as it is. The companies I allude to in this article, and they do exist, (as ever all the research used in the compilation of this article is available to any of my connections and contacts), are only able to grow because they have targeted weaknesses in your current business model, and by using the plethora of platforms now available to target your most precious commodity; your customers.

Anyone who wishes to discuss strategies designed to meet the challenges discussed in the article head on, and how we can help in that process, please feel free to contact either myself at ajb@autoformance.com or my fellow founding director, Malcolm Thomas, at mgt@autoformance.com when it will be our pleasure to make ourselves available to discuss this matter.

Alternatively please feel free to call us on 0345 057 3177.

For more information about our services please visit our website at www.autoformance.com

Andrew Banning.
Used Car Business Development Director.

Internet New Car Sales 2, Judgement Day! (UK Dealer Article)

Apologies for the shameless play on a theme but I thought it appropriate for this article, the requested and therefore the change in the planned article for this week, after the response to my last article; “Wow An Internet Company Got Me Over £5,000:00 Off My New Car!”

As the post has generated so much interest and debate, both from those of you actively building relationships with internet based new car suppliers and those of you who are not, let me address the first two question you all asked;

• Would you be building on-going relationships with these businesses?
• If not, why not?

As I said to all of you who contacted let me, the answer to the first question is a resounding “No!” The answer to the 2nd question is a big issue, not because I don’t think that the industry needs to adapt its purchasing model to better suit consumers and embrace internet based on-line models; I do, but the answer (in my opinion) is to develop them yourselves, not to be embracing the business models of others.

Now before going on to explain my position, I add the caveat that it is not for me to tell anyone how to run their business, but in order to demonstrate why I wouldn’t be looking to build any relationships with these businesses, let’s look at it from the perspective of, if I were running one of these businesses, and where I would be planning to take my business in the long term.

In order to do this and to bring some clarity to their intentions and their business model, and therefore the dangers that they pose to your traditional trading model, we must start by thinking like the people owning and running these businesses because, once you do this, you will begin to see what they are doing and where these business models may be heading.

So let’s do some role play, with me in the role of the owner of an internet based independent new car supplier; and let’s imagine that you are quizzing me on my intentions and the long term intentions that I have for my independent internet based new car supply business.

Well the first and most important thing to grasp is that, unlike you, I am not a Motor Trade or Automotive Sector professional, I am a Technology professional! This is the most important thing to grasp because, in fact, I am the proverbial wolf in sheep’s clothing and in disguising my business intentions behind the facade of being just an automotive business, I am hoping that you will think of my business in the terms of an automotive business, therefore underestimating the long term danger I pose to your current business.

My business heroes are less likely to be Henry Ford, Ferdinand Porsche and Enzo Ferrari, they are more likely to be the owner of Amazon, Jeff Bezos; I will have read his books and digested his quotes and the one that I will hold most dear to my heart is “Your Margin Is My Opportunity!”

Before launching my business I will have studied in-depth the story of Virgin Cars to understand where it all went so wrong for such a well-known brand; I will have learnt from the mistakes of trying to own their own stock holding, opening dealerships, employing staff under a dealership structure and of effectively being a currency business disguised as an automotive business. I will have watched the rise of Mark Zuckerberg and his company, Facebook and I will have learnt from watching businesses like these that “Data Is The New Gold” and that in fact, all I have to do over time, just like Amazon and the many other successful technology businesses, is to change the purchasing habits of consumers and harvest their data!

I will hope that you will think that without access to stock my chances of success are slim, because you are thinking like an automotive professional, and after all just how can I have a successful automotive business with no access to stock. Now being a Machiavellian technology professional I will allow this situation to play out because while you are fussing about this, I will be targeting the most precious commodity of all, your customers.

Why will I do this, well it is important to remember that “Perception Is Reality” so I will engage in a business of changing the perception of reality with consumers whilst harvesting their personal data, and with the current furore surrounding Cambridge Analytica and Facebook, we should no longer be in any doubt about, (with GDPR legislation also due in May), how powerful companies with access to authorised levels of personal data are!

So my business thus far, and let’s assume I am running one of the many new internet based independent new car suppliers, has been involved in targeting the consumer, because the consumer is the key to my success. I am going to change the perception of the consumer and make my business the easily accessible, independent and trusted place to go to for all things to do with the purchase of my new car, because I don’t need a stock holding, (this is where Virgin Cars went wrong), what I need is customers and their data, because once I have this I can begin to use the information freely supplied by consumers, to take all the guess work out of planning the success of my new business.

You see in the eyes of the consumer, I am going to be seen as a “Knight In Shining Armour” using new tech platforms to supply good old fashioned content material and advice on how to get the best deal on, and to take all the hassle out of, buying my new car. And for those of you unaware of the power of Content Marketing, of the opinion that it is old fashioned, I will think how lucky I am that you haven’t read, studied or understood just how many of the successful brands in the world today have been built using content marketing to win the trust of consumers; I will hope that you never study the story of how a blacksmith in America, John Deere, used content marketing to build one of the biggest tractor manufacturers in the world; in fact the publication he launched for this very purpose, The Furrow, is still published today, over 120 years after its launch.

By now I have no doubt that you will be a little dazed and let’s assume that you, as the franchised dealer, go on to ask me how I have done this. I will tell you that I have realised that I need to target the weaknesses in your business model, and in doing so I have learnt the following;

• Customers, in the main, do not like the current process involved in buying their new car.
• Franchised dealer networks are not striving to go out and get the best sales people and build the best sales teams they can, regardless of the cost!
• Customers don’t like haggling on price.
• Customers live very busy lives and don’t want to spend their free time visiting dealerships.
• There is a big demand for impartial advice on the dizzying array of models available for sale.

So for my business to succeed I have to become the trusted business within the automotive sector, offering impartial advice for free and not to be charging the customer for this service; in effect I need to become the trusted price comparison site for car purchases, but on steroids!

So how have I done this; well I will tell you that very quietly I will have been sending out these messages to consumers, in order to harvest their data, (we will come on to the real importance of this later), and to change their perception of reality.

I have built my website platform and invested massively in my content messaging. Knowing that video is the future, I have launched my own TV Channel on YouTube to review cars, (Top Gear style), to offer free advice to consumers on the cars that they should be purchasing. I have secured additional funding to advertise on TV, building the perception of success with the customer. These are very powerful subliminal messages of success, no one who advertises on TV is seen as unsuccessful in the eyes of the customer. And this is my play, because it is all about funnelling increased levels of customer traffic to my website, where the subliminal messages that continue to change the perception of customer can continue.

Here they will log on and the perception will be that we have access to over 60 manufacturers, when I don’t necessarily have to have dealt with all of them or necessarily have access to any discounts. I will also name supercar manufacturers, everyone from Bugatti to Pagani, again because it is all about perception. I may not be able to offer any discounts on these products, I may just have some reviews, but the customers perception is already being changed; “Wow, these people deal with Bugatti!”

I will then have help and impartial advice on all the aspects associated with buying a new car and this will ensure that I am seen as impartial, (do not under estimate how powerful this play is with consumers, because this impartial advice is not available from your dealership). Remember I am in the data collation business so I need to build trust with consumers, so this information will be supplied free of charge to consumers visiting my site, fully in the knowledge that this separates my business from yours.

From there it will get more undermining because I will have carefully placed subliminal text within the most visited sections of my website, in order to continue to change the perception and the purchasing behaviour of your customers; I can do this because I am a technology professional and I measure all traffic to my website and the most visited sections and topics, so by analysing this traffic I know exactly where to continue with my messaging, in order to continue the process of building trust with consumers.

To demonstrate this fact, let me outline below some of the text I will use and what the subliminal message to the consumer will be.

• “Our Dealers;” I will have a heading involving my company name; This is intentional and a clever play on words to build the perception that, as an organisation, we sit above you as the dealer; that this is our network and that we are in control.
• We Will Only Use Authorised Dealers; Here my message is to reassure the consumer that all cars will come from authorised outlets of the manufacturer.
• Haggling Is Overcome, Our Dealers Are committed To Offering Their Best Price; This statement is designed for 2 purposes, firstly to reassure the customer that we have removed the nasty process of haggling and to subtly build the perception that we are in control, we are the consumers friend!
• We Have Changed The Way People Buy Cars! We have grown so powerful and are so trusted by consumers that we are now able to drive the change required by consumers, within the industry.
• We Don’t Charge You Anything For Our Services; A very important message as we are now perceived as having nothing to sell, in fact we openly advise that we get our fees from the dealers, who have to use us because, (and remember), “We Are Changing The Way People Buy Cars.” We are on the side of the consumer!
• Help Available In Any Disputes; This is a very important heading and the text that follows will leave the consumer in no doubt that we will intervene should there be any discrepancies when dealing with the franchised dealership concerned. Again compounding the perception that we are in control of the dealer networks and there to support the consumer at all times.
• We Measure The Quality Of The Service You Receive; This is a very important heading and the text that will follow this will be designed to give the impression that we will not take it for granted that all manufacturer approved dealers will come up to the higher standards that we require. In fact the underlying message will be that we will set the standards required and that any manufacturer approved dealers not achieving our standards will not be allowed to be a member of “Our Approved Network Of Suppliers!” Do not lose sight of the fact here that I am also undermining your franchised dealer network and the manufacturer you represent.
• We Will Not Pass On Your Data; This is a very important message on 2 counts, firstly it reassures the consumer that their data is safe with us, which secondly makes them more likely to give us their data, which we require in order to continue to build our business. And remember, we do this by building the perception of being the consumers trusted friend.

So at this stage you might be a little worried or you may decide that as a franchised dealer, you want to build a relationship with my business, which will be your call. But in case you don’t, I will begin phase 2 of my operation which, having now targeted your customers, will be to begin to subtly drive a wedge between you and the manufacturer you represent, by sending the messages to you required, in order to change your perception, and convince you of the need to deal with us because guess what, we have access to the customers!

And if all this wasn’t enough, here comes the genius in my plan; you have heard me discussing GDPR, (or General Data Protection Regulation), which is a piece enforceable legislation from 25th May 2018 and in short it is an extension to the current data protection laws. However, and here’s the catch, part of this legislation deals with the sending of electronic marketing messages and the “Opt Ins” required from the recipient, in order for you to legally market your business to customers via electronic platforms, email etc.

Now being a technology professional, I have all the “Opt Ins” required under the new GDPR Legislation in order to continue to “Sweat My Data Assets” and advertise my business to the huge data base that I have compiled since I launched my independent internet new car supply business. Obviously I can’t comment on the amount and quality of the data either you or your franchised partners hold, but my gamble is that it will take you years to catch up and have the access to data that I enjoy, and that what data you do hold, may not even be GDPR compliant, in terms of utilising it for electronic campaigns.

This of course will put you at a tremendous trading disadvantage and during this time of declining new car registrations, guess what, I have moved on and started the process of changing the perception of many other areas of your business model, by posting content and offering free and trusted advice on all aspects of the car purchasing process.

This will include finance, the purchasing of used cars and the disposal of your current car/part exchange; so you see what started as a data collection and the manipulation of markets business, under the guise of a new car supply business, actually wants all the parts of your business where there are great revenue streams to be enjoyed. And the final irony; whilst I am driving my business towards the planned successful conclusion, I will not be opening any dealerships or employing any dealership structures of staff; why should I when I can continue to use yours?

Thus the comparison to the Terminator films in the title for this article, where technology ends up destroying the world we once knew! Not sounding so farfetched at the moment is it?

Now in finishing I add the caveat, (again), that it is not for me tell any of you how to run your businesses; I am an Automotive Sector Consultant and our business builds business development and sales training programmes for manufacturers and their dealer networks. We are avid bloggers in the Automotive Sector and those of you who have requested Used Car/Market Strategy Discussion and Proposal Documents from us in the last 6 months, know that we tell it as it is. The companies I allude to in this article, and they do exist, (as ever all the research used in the compilation of this article is available to any of my connections and contacts), are only able to grow because they have targeted weaknesses in your current business model, and by using the plethora of platforms now available to target your most precious commodity; your customers.

Anyone who wishes to discuss strategies designed to meet the challenges discussed in the article head on, and how we can help in that process, please feel free to contact either myself at ajb@autoformance.com or my fellow founding director, Malcolm Thomas, at mgt@autoformance.com when it will be our pleasure to make ourselves available to discuss this matter.

Alternatively please feel free to call us on 0345 057 3177.

For more information about our services please visit our website at www.autoformance.com

Andrew Banning.
Used Car Business Development Director.

“Wow An Internet Company Got Me Over £5,000:00 Off My New Car!” (UK Dealer Article)

I will start this article with a quote from a friend of mine who, although is extremely successful in his professional life, (like the majority of your customers), has absolutely no idea of how the automotive sector works, but his story and the quote below should be a stark warning to both Automotive Manufacturers and their franchised dealer networks.

In fact he has always come to me for advice when looking to change his car, which he did in January, but this time he was far further down the path of a decision than he had ever been in the past. A busy professional he dreads the whole concept of changing his car but he had been introduced to an independent internet based new car supplier via their recent TV campaign. Below are his actual words;

“I couldn’t believe it, I just logged on and saw the discounts available. I had no idea that the company existed or that discounts like this were possible on a premium brand of car; so I took a screen shot, emailed it to the dealer I had been speaking too and they immediately beat the quote for me!”

Those of you who follow my blog and/or read my used car business development articles, know that I have been promising to write this article for a while, because if any story should send a shiver down the spines of franchised dealer networks, it is the one above; and before you think well it is OK for us we are probably not the brand concerned and I’m sure that this is not happening with our product, I would caution to think again.

I won’t be naming names in this article, we all know who the internet based companies are and there is no need, besides the companies concerned have a right to run the business of their choice and as a franchise dealer network, you have the right to choose who has access to your product, (well within reason), and let’s assume for the benefit of this article that the manufacturer you represent has full knowledge of how you are or are not making product available to these businesses! And that they sanction that? 

But let’s at least explore where any decisions to allow the current “Status Quo” to remain unchanged, may be heading. My advice in the first instance; log onto these websites and see the discounts listed for your products, some of you are going to be reassured but some will be choking over their cornflakes because in the eyes of the customer, just like my friend, the easily accessible websites of independent new car suppliers are now beginning to set the pricing agenda on new cars.

I have seen most things during my 25 + years in the automotive sector but even I was surprised at how undermining some of the discounts stated were to the brands concerned and how surprised I was that some of the usual suspects for this heavily discounted pricing model, were actually the franchise dealer networks making a stand and therefore showing the smallest discount levels available. You will all have to look yourselves to see which category you fall into and therefore whether or not you feel the distressed prices shown are where you want the brand you represent to be.

But what is important here is the perception of the customer because, to the customer, “Perception Is Reality!” I have no idea of the business objectives of these independent internet based new car suppliers, but one thing I do know is this; If you can change consumer behaviour and control the most valuable of commodities, the customer, you can effect change in the market you choose to target.

You could argue that the company concerned didn’t get the business of my friend on this occasion and you would be right, not this time, but they have changed his purchasing behaviour forever and this situation will be resulting in some major shifts within the Automotive Sector.

• It has massively reduced the profit margin of the franchised dealer concerned and ongoing this will affect the franchised dealer network as a whole.
• It has changed the individuals purchasing behaviour; where do you think he will go first the next time he wants a quote on a new car?
• It will no doubt generate many other potential customers for the company concerned, once this individual has spoken about this experience to his many friends and associates.
• It is making these companies very powerful with consumers and therefore within the sector, and no doubt they will not be bothered about losing this sale in the here and now as this will all be part of the “Long Game!”

Now what the independent internet based new car suppliers are achieving is very clever and a very similar business model to those employed by other tech entrepreneurs, the likes of Amazon, We Buy Any Car, Uber and on a another scale, how Purple Bricks are targeting the real estate sector. They are engaged first and foremost in the attacking of established markets, via the successful manipulation of consumer behaviour.

Now the Automotive Sector is not alone as an industry in being targeted by outside forces and having our established markets put under threat. This is the business model of choice for technology entrepreneurs who see how advances in technology can change the way business is done in long standing established markets, and appeal to the changing purchasing habits of a proportion of our customers. If you don’t believe me, just ask your local estate agent or a taxi driver, to see how technology entrepreneurs are targeting established markets with no barriers of entry!

Now as challenging as this trading landscape is, the internet based new car suppliers are, in my opinion, a different and less threatening proposition and I think the industry should stop obsessing about them. So why do I say this? Well the independent internet based new car suppliers will only ever be as strong as the weakest link in your franchised dealer network is weak. Like Virgin Cars before them, they can only be successful if they have access to stock and access to stock is in your hands, as a franchised dealership, and your franchise partners; make stock available to these businesses and guess what, they will have a flourishing business, (one which is now advertising on National TV), but if you don’t make stock available to them, then they won’t!

There is no doubt that some of the manufacturers that you represent might have a decision to make and that action might need to be taken because there is a long term danger here that, at first glance to both you and some of your franchise partners, the internet based independent new car suppliers may actually appear to be a necessary evil; if manufacturers are not more supportive and creative in how product ranges reaching the end of their production cycle are retailed/disposed of. 

However, and as much I as I add the very respectful caveat that it is not for me to tell any franchise dealer group how to run their business, I have been left bewildered by posts on LinkedIn showcasing training days delivered by the staff of these independent internet based businesses, actually at the sites of some of the biggest dealer groups in the country. Again it is not for me to tell anyone how to run their business, I can only advise from my own perspective, but if it were me and I was the manufacturer you represented?,,,,, Well I would be taking a very dim view.

No matter which brand you are representing, you have models that become more difficult to retail as they progress through their life cycle. It is an inconvenient truth that only one car can be the market leader, (in its class), and that no car can be the market leader throughout its production life cycle, and in the past I have seen many excellent manufacturer based initiatives to keep control of this product, reduce the perception of distress marketing and protect residual values.

This has included one luxury car maker actually selling cars at cost and guaranteeing to purchase them back in 12 months at the same price! Which at the time was a stroke of genius; not only did it bring customers to the brand who would not have otherwise purchased these cars, but it also avoided the perception of market wide distress marketing and most importantly, ensured their used car operations had a future supply of quality used car stock, which helped to protect residual values; key to on-going success in the new car market.

As a franchise dealer you will always have both business based and cyclical pressures to register new cars, and at the end of the production cycle, (and when market fluctuations cause sales to begin to slow down), margins come under pressure and registration targets need to be met. At this moment the independent internet based companies may be an attractive proposition for you, (in terms of disposing of this stock holding), if you are not supported by manufacturer initiatives, and this is when you are in danger of letting the wolf in through the door.

It is important to remember that these businesses are not charities, they are in business to make money and by allowing these businesses to set the market price of your new car product, regardless in how small a proportion of the market, you are not only allowing them to manipulate consumer behaviour, you are putting both your new car profit margins and future residual values in the hands of third party businesses with no loyalty to you, only their own business and their own aspirations, and it is unlikely that they are going to be aligned with yours.

They like you need customers to survive, but without product they have no customers, so much thought must be given to the long term ramifications of giving your new car problems of today to third party businesses, in the misguided perception that you have gained the advantage because you, and the manufacturer you represent, have not.

For sure both you and your franchise partners have got money in the bank, you have disposed of product and reached your registration targets, but this has been achieved by handing a business over to your competitors on a plate! In effect this means you have supported a competitor business and my advice would be to be mindful of the “Trojan Horse” business model of these new up and coming technology based businesses.

Like We Buy Any Car did all those years ago now, they see the inherent weaknesses in our business model and they are targeting it, just as they are many other established markets, because they see the revenues to be made; and before you know it they have customers of their own, who should be your customers, and they have grown too powerful.

My challenge to manufacturers would be this; if these purchasing models of business are viable, why are you not employing them yourselves? And if you are, like some manufactures who are moving to offering online purchasing models, deploy some joined up thinking to this process and look beyond the immediate business needs of the new car sale.

And my challenge to franchised dealer networks would be this; however it is done and regardless of the discussions that need to be had, be very mindful that your status in the purchasing process is being undermined in the eyes of the customer, so if it were me I would be standing up and saying that now is the time to make no stock available to these businesses what so ever, (not now or at any time in the future); to look inward and to adapt our processes and business models to meet the demand of consumers who are currently being “Woo-ed” by these businesses.

There is no doubt that consumer purchasing habits are changing and evolving at a rapid pace, and the technology model will be vital to your on-going success in the new car market. In fact I was chatting recently to someone who has been instrumental in launching on-line purchasing models for manufacturers and was enthusing about just how brilliant the platform was, and having looked at it, I agree. But one thing troubled me; during the conversation I asked just one simple question; “How is any part exchange valued?” The answer; “Via third party auction software!” 

Now the long term ramifications of strategic business decisions like these are a post in themselves and I will be returning to this subject in a future post, because I am concerned for some manufactures and their franchised dealer networks, those I see handing over the most important business they have, (in terms of their future new car success), to third party partners, thinking it is a short term price worth paying for new car registrations today.

Now out of respect, I will add the caveat again that it is not for me to tell anyone how to run their business, but at the risk of repeating myself, I cannot stress enough that the success of your future new car business has it’s foundations in your success in the used car market; it is the shared and common objective that binds manufacturers to their franchise dealer networks and you must be careful in applying too much short term thinking to the new car challenges of today.

With new car registrations declining last year, how the UK automotive industry faces the challenges of tougher trading conditions in the new car market, will be interesting to observe, especially in regard to the used car market and individual manufacturer used car market strategy during this period. Will some manufacturers and their dealer networks continue to hand their new, nearly new or used car stock problems over to competitors and feed independent competitor businesses? I don’t know but it will be fascinating to observe?

This will be a challenging period and I fully accept that resilient and successful used car operations are not “A Given” for manufacturers and their franchised dealer networks, but luckily help is available and 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 operation 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 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 us on 0345 057 3177.

For more information about our services please visit our website at www.autoformance.com

Andrew Banning.
Used Car Business Development Director.

“Wow An Internet Company Got Me Over £5,000:00 Off My New Car!” (UK Manufacturers Article)

I will start this article with a quote from a friend of mine who, although is extremely successful in his professional life, (like the majority of your customers), has absolutely no idea of how the automotive sector works, but his story and the quote below should be a stark warning to Automotive Manufacturers.

In fact he has always come to me for advice when looking to change his car, which he did in January, but this time he was far further down the path of a decision than he had ever been in the past. A busy professional he dreads the whole concept of changing his car but he had been introduced to an independent internet based new car supplier via their recent TV campaign. Below are his actual words;

“I couldn’t believe it, I just logged on and saw the discounts available. I had no idea that the company existed or that discounts like this were possible on a premium brand of car; so I took a screen shot, emailed it to the dealer I had been speaking too and they immediately beat the quote for me!”

Those of you who follow my blog and/or read my used car business development articles, know that I have been promising to write this article for a while, because if any story should send a shiver down the spines of Automotive Manufacturers, it is the one above; and before you think well it is OK for us we are probably not the manufacturer concerned and I’m sure that this is not happening with our product, I would caution to think again.

I won’t be naming names in this article, we all know who the internet based companies are and there is no need, besides the companies concerned have a right to run the business of their choice and as a manufacturer, you have the right to choose who has access to your product, but let’s at least explore where these decisions to allow the “Status Quo” to remain unchanged, may be heading. My advice in the first instance; log onto these websites and see the discounts listed for your products, some of you are going to be reassured but some will be choking over their cornflakes because in the eyes of the customer, just like my friend, the easily accessible websites of independent new car suppliers are now beginning to set the pricing agenda on new cars.

I have seen most things during my 25 + years in the automotive sector but even I was surprised at how undermining some of the discounts stated were to the brands concerned and how surprised I was that some of the usual suspects for this heavily discounted pricing model, were actually the manufacturers making a stand and therefore showing the smallest discount levels available. You will all have to look yourselves to see which category you fall into and therefore whether or not you feel the distressed prices shown are where you want the brand you represent to be.

But what is important here is the perception of the customer because, to the customer, “Perception Is Reality!” I have no idea of the business objectives of these independent internet based new car suppliers, but one thing I do know is this; If you can change consumer behaviour and control the most valuable of commodities, the customer, you can effect change in the market you choose to target.

You could argue that the company concerned didn’t get the business of my friend on this occasion and you would be right, not this time, but they have changed his purchasing behaviour forever and this situation will be resulting in some major shifts within the Automotive Sector.

• It has massively reduced the profit margin of the franchised dealer concerned.
• It has changed the individuals purchasing behaviour; where do you think he will go first the next time he wants a quote on a new car?
• It will no doubt generate many other potential customers for the company concerned, once this individual has spoken about this experience to his many friends and associates.
• It is making these companies very powerful with consumers and therefore within the sector, and no doubt they will not be bothered about losing this sale in the here and now as this will all be part of the “Long Game!”

Now what the independent internet based new car suppliers are achieving is very clever and a very similar business model to those employed by other tech entrepreneurs, the likes of Amazon, We Buy Any Car, Uber and on a another scale, how Purple Bricks are targeting the real estate sector. They are engaged first and foremost in the attacking of established markets, via the successful manipulation of consumer behaviour.

Now the Automotive Sector is not alone as an industry in being targeted by outside forces and having our established markets put under threat. This is the business model of choice for technology entrepreneurs who see how advances in technology can change the way business is done in long standing established markets, and appeal to the changing purchasing habits of a proportion of our customers. If you don’t believe me, just ask your local estate agent or a taxi driver, to see how technology entrepreneurs are targeting established markets with no barriers of entry!

Now as challenging as this trading landscape is, the internet based new car suppliers are, in my opinion, a different and less threatening proposition and I think the industry should stop obsessing about them. So why do I say this? Well the independent internet based new car suppliers will only ever be as strong as the weakest link in your franchised dealer network is weak. Like Virgin Cars before them, they can only be successful if they have access to stock and access to stock is in your hands, as the manufacturer, and your franchise partners; make stock available to these businesses and guess what, they will have a flourishing business, (one which is now advertising on National TV), but if you don’t make stock available to them, then they won’t!

There is no doubt that some manufacturers might have a decision to make and that action might need to be taken because there is a long term danger here that, at first glance to your franchise partners, the internet based independent new car suppliers may actually appear to be a necessary evil; if you as the manufacturers are not more supportive and creative in how product ranges reaching the end of their production cycle are retailed/disposed of. 

However, and as much I as I add the very respectful caveat that it is not for me to tell any franchise dealer group how to run their business, I have been left bewildered by posts on LinkedIn showcasing training days delivered by the staff of these independent internet based businesses, actually at the sites of some of the biggest dealer groups in the country. Again it is not for me to tell manufacturers how to run their franchise dealer networks, I can only advise from my own perspective, but if it were me?,,,,, Well I would be taking a very dim view.

No matter which brand you are representing, you have models that become more difficult to retail as they progress through their life cycle. It is an inconvenient truth that only one car can be the market leader, (in its class), and that no car can be the market leader throughout its production life cycle, and in the past I have seen many excellent manufacturer based initiatives to keep control of this product, reduce the perception of distress marketing and protect residual values.

This has included one luxury car maker actually selling cars at cost and guaranteeing to purchase them back in 12 months at the same price! Which at the time was a stroke of genius; not only did it bring customers to the brand who would not have otherwise purchased these cars, but it also avoided the perception of market wide distress marketing and most importantly, ensured their used car operations had a future supply of quality used car stock, which helped to protect residual values; key to on-going success in the new car market.

Your franchise dealer networks will always have both business based and cyclical pressures to register new cars, and at the end of the production cycle, (and when market fluctuations cause sales to begin to slow down), margins come under pressure and registration targets need to be met. At this moment the independent internet based companies may be an attractive proposition for your franchise partners, (in terms of disposing of this stock holding), if they are not supported by manufacturer initiatives, and this is when you are in danger of letting the wolf in through the door.

It is important to remember that these businesses are not charities, they are in business to make money and by allowing these businesses to set the market price of your new car product, regardless in how small a proportion of the market, you are not only allowing them to manipulate consumer behaviour, you are putting future residual values in the hands of third party businesses with no loyalty to you, only their own business and their own aspirations, and it is unlikely that they are going to be aligned with yours.

They like you need customers to survive, but without product they have no customers, so much thought must be given to the long term ramifications of allowing your franchise partners to give their new car problems of today to third party businesses, in this misguided perception that they have gained the advantage, because they, and you as the manufacturer, have not.

For sure both you as the manufacturer and your franchise partners have got money in the bank, you have disposed of product and reached your registration targets, but this has been achieved by handing a business over to your competitors on a plate! In effect this means you have supported a competitor business and my advice would be to be mindful of the “Trojan Horse” business model of these new up and coming technology based businesses.

Like We Buy Any Car did all those years ago now, they see the inherent weaknesses in your business model and they are targeting it, just as they are many other established markets, because they see the revenues to be made; and before you know it they have customers of their own, who should be your customers, and they have grown too powerful.

My challenge to manufacturers would be this; if these purchasing models of business are viable, why are you not employing them yourselves? And if you are, like some manufactures who are moving to online purchasing models, deploy some joined up thinking to this process and look beyond the immediate business needs of the new car sale.

There is no doubt that consumer purchasing habits are changing and evolving at a rapid pace, and the technology model will be vital to your on-going success in the new car market. In fact I was chatting recently to someone who has been instrumental in launching on-line purchasing models for manufacturers and was enthusing about just how brilliant the platform was, and having looked at it, I agree. But one thing troubled me; during the conversation I asked just one simple question; “How is any part exchange valued?” The answer; “Via third party auction software!” 

Now the long term ramifications of strategic business decisions like these are a post in themselves and I will be returning to this subject in a future post, because I am concerned for some manufactures, those I see handing over the most important business they have, (in terms of their future new car success), to third party partners, thinking it is a short term price worth paying for new car registrations today.

Now out of respect, I will add the caveat again that it is not for me to tell anyone how to run their business, but at the risk of repeating myself, I cannot stress enough that the success of your future new car business has it’s foundations in your success in the used car market; it is the shared and common objective that binds manufacturers to their franchise dealer networks and you must be careful in applying too much short term thinking to the new car challenges of today.

With new car registrations declining last year, how the UK automotive industry faces the challenges of tougher trading conditions in the new car market, will be interesting to observe, especially in regard to the used car market and individual manufacturer used car market strategy during this period. Will some manufacturers and their dealer networks continue to hand their new, nearly new or used car stock problems over to competitors and feed independent competitor businesses? I don’t know but it will be fascinating to observe?

This will be a challenging period and I fully accept that resilient and successful used car operations are not “A Given” for manufacturers, but luckily help is available and 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 dealer network programme 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 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 us on 0345 057 3177.

For more information about our services please visit our website at www.autoformance.com

Andrew Banning.
Used Car Business Development Director.

Internet New Car Sales 2, Judgement Day! (European Manufacturers Article)

Apologies for the shameless play on a theme but I thought it appropriate for this article, the requested and therefore the change in the planned article for this week, after the response to my last article; “Wow An Internet Company Got Me Over 10,000:00 Euros Off My New Car!”

As the post has generated so much interest and debate let me try and deal with your questions from the perspective of, if I were running one of these businesses, and where I would be planning to take my business in the long term. In order to do this and to bring some clarity to their intentions and their business model, and therefore the dangers that they pose to your traditional trading model, we must start thinking like the people owning and running these businesses because, once you do this, you will begin to see what they are doing and where these business models may be heading.

So let’s do some role play, with me in the role of the owner of an internet based independent new car supplier, one that is currently operating very successfully in the UK, but who is also now launching into European markets; and let’s imagine that you are quizzing me on my intentions and the long term intentions that I have for my independent internet based new car supply business.

Well the first and most important thing to grasp is that, unlike you, I am not a Motor Trade or Automotive Sector professional, I am a Technology professional! This is the most important thing to grasp because, in fact, I am the proverbial wolf in sheep’s clothing and in disguising my business intentions behind the facade of being just an automotive business, I am hoping that you will think of my business in the terms of an automotive business, therefore underestimating the long term danger I pose to your current business.

My business heroes are less likely to be Henry Ford, Ferdinand Porsche and Enzo Ferrari, they are more likely to be the owner of Amazon, Jeff Bezos; I will have read his books and digested his quotes and the one that I will hold most dear to my heart is “Your Margin Is My Opportunity!”

Before launching my business I will have studied in-depth the story of Virgin Cars to understand where it all went so wrong for such a well-known brand; I will have learnt from the mistakes of trying to own their own stock holding, opening dealerships, employing staff under a dealership structure and of effectively being a currency business disguised as an automotive business. I will have watched the rise of Mark Zuckerberg and his company, Facebook and I will have learnt from watching businesses like these that “Data Is The New Gold” and that in fact, all I have to do over time, just like Amazon and the many other successful technology businesses, is to change the purchasing habits of consumers and harvest their data!

I will hope that you will think that without access to stock my chances of success are slim, because you are thinking like an automotive professional, and after all just how can I have a successful automotive business with no access to stock. Now being a Machiavellian technology professional I will allow this situation to play out because while you are fussing about this, I will be targeting the most precious commodity of all, your customers.

Why will I do this, well it is important to remember that “Perception Is Reality” so I will engage in a business of changing the perception of reality with consumers whilst harvesting their personal data, and with the current furore in the UK surrounding Cambridge Analytica and Facebook, we should no longer be in any doubt about, (with GDPR legislation also due in May), how powerful companies with access to authorised levels of personal data are!

So my business thus far, and let’s assume I am running one of the many new internet based independent new car suppliers, has been involved in targeting the consumer, because the consumer is the key to my success. I am going to change the perception of the consumer and make my business the easily accessible, independent and trusted place to go to for all things to do with the purchase of my new car, because I don’t need a stock holding, (this is where Virgin Cars went wrong), what I need is customers and their data, because once I have this I can begin to use the information freely supplied by consumers, to take all the guess work out of planning the success of my new business.

You see in the eyes of the consumer, I am going to be seen as a “Knight In Shining Armour” using new tech platforms to supply good old fashioned content material and advice on how to get the best deal on, and to take all the hassle out of, buying my new car. And for those of you unaware of the power of Content Marketing, of the opinion that it is old fashioned, I will think how lucky I am that you haven’t read, studied or understood just how many of the successful brands in the world today have been built using content marketing to win the trust of consumers; I will hope that you never study the story of how a blacksmith in America, John Deere, used content marketing to build one of the biggest tractor manufacturers in the world; in fact the publication he launched for this very purpose, The Furrow, is still published today, over 120 years after its launch.

By now I have no doubt that you will be a little dazed and let’s assume that you, as the manufacturer, go on to ask me how I have done this. I will tell you that I have realised that I need to target the weaknesses in your business model, and in doing so I have learnt the following.

• Customers, in the main, do not like the current process involved in buying their new car.
• Your franchised dealer networks are not striving to go out and get the best sales people and build the best sales teams they can, regardless of the cost!
• Customers don’t like haggling on price.
• Customers live very busy lives and don’t want to spend their free time visiting dealerships.
• There is a big demand for impartial advice on the dizzying array of models available for sale.

So for my business to succeed I have to become the trusted business within the automotive sector, offering impartial advice for free and not to be charging the customer for this service; in effect I need to become the trusted price comparison site for car purchases, but on steroids!

So how have I done this; well I will tell you that very quietly I will have been sending out these messages to consumers, in order to harvest their data, (we will come on to the real importance of this later), and to change their perception of reality. I have built my website platform and invested massively in my content messaging. Knowing that video is the future, I have launched my own TV Channel on YouTube to review cars, (Top Gear style), to offer free advice to consumers on the cars that they should be purchasing.

I have secured additional funding to advertise on TV in the UK, building the perception of success with the UK based customers. These are very powerful subliminal messages of success, no one who advertises on TV in the UK is seen as unsuccessful in the eyes of the customer. And this is my play, because it is all about funnelling customer traffic to my website, where the subliminal messages that continue to change the perception of customer can continue.

Here they will log on and the perception will be that we have access to over 60 manufacturers, when I don’t necessarily have to have dealt with all of them or necessarily have access to any discounts. I will also name supercar manufacturers, everyone from Bugatti to Pagani, again because it is all about perception. I may not be able to offer any discounts on these products, I may just have some reviews, but the customers perception is already being changed; “Wow, these people deal with Bugatti!”

I will then have help and impartial advice on all the aspects associated with buying your new car and I will be seen as impartial; again remember I am in the data collation business and I need to build trust with consumers. So this information will be supplied free of charge to consumers visiting my site, fully in the knowledge that this separates my business from yours.

From there it will get more undermining because I will have carefully placed subliminal text within the most visited sections of my website, in order to continue to change the perception and the purchasing behaviour of your customers; I can do this because I am a technology professional and I measure all traffic to my website and the most visited sections and topics, so by analysing this traffic I know exactly where to continue with my messaging, in order to continue the process of building trust with consumers.

To demonstrate this fact, let me outline below some of the text I will use and what the subliminal message to the consumer will be.

• “Our Dealers;” I will have a heading involving my company name; This is intentional and a clever play on words to build the perception that this is my network and that we are in control.
• We Will Only Use Authorised Dealers; Here my message is to reassure the consumer that all cars will come from authorised outlets of the manufacturer.
• Haggling Is Overcome, Our Dealers Are committed To Offering Their Best Price; This statement is designed for 2 purposes, firstly to reassure the customer that we have removed the nasty process of haggling and to subtly build the perception that we are in control, we are the consumers friend!
• We Have Changed The Way People Buy Cars! We have grown so powerful and are so trusted by consumers that we are now able to drive the change required by consumers, within the industry.
• We Don’t Charge You Anything For Our Services; A very important message as we are now perceived as having nothing to sell, in fact we openly advise that we get our fees from the dealers, who have to use us because, (and remember), “We Are Changing The Way People Buy Cars.” We are on the side of the consumer!
• Help Available In Any Disputes; This is a very important heading and the text that follows will leave the consumer in no doubt that we will intervene should there be any discrepancies when dealing with the franchised dealership concerned. Again compounding the perception that we are in control of the dealer networks and there to support the consumer at all times.
• We Measure The Quality Of The Service You Receive; This is a very important heading and the text that will follow this will be designed to give the impression that we will not take it for granted that all manufacturer approved dealers will come up to the higher standards that we require. In fact the underlying message will be that we will set the standards required and that any manufacturer approved dealers not achieving our standards will not be allowed to be a member of “Our Approved Network Of Suppliers!” Do not lose sight of the fact here that I am also undermining you as the manufacturer.
• We Will Not Pass On Your Data; This is a very important message on 2 counts, firstly it reassures the consumer that their data is safe with us, which secondly makes them more likely to give us their data, which we require in order to continue to build our business. And remember, we do this by building the perception of being the consumers trusted friend.

So at this stage you might be a little worried or you may decide that as a manufacturer, you want to build a relationship with my business, which will be your call. But in case you don’t, I will begin phase 2 of my operation which, having now targeted your customers, will be to begin to subtly drive a wedge between you and your franchise partners, by sending the messages to them required, in order to change their perception, and convince them of the need to deal with us because guess what, we have the customers!

And if all this wasn’t enough, here comes the genius in my plan; you have heard me discussing GDPR, (or General Data Protection Regulation), which is a piece enforceable legislation from May 2018 and in short it is an extension to the current data protection laws. However, and here’s the catch, part of this legislation deals with the sending of electronic marketing messages and the “Opt Ins” required from the recipient, in order for you to legally market your business to customers via electronic platforms, email etc.

Now being a technology professional, I have all the “Opt Ins” required under the new GDPR Legislation in order to continue to “Sweat My Data Assets” and advertise my business to the huge data base that I have compiled since I launched my independent internet new car supply business. Obviously I can’t comment on the amount and quality of the data either you or your franchised partners hold, but my gamble is that it will take you years to catch up and have the access to data that I enjoy, and that what data you do hold, may not even be GDPR compliant, in terms of utilising it for electronic campaigns.

This of course will put you at a tremendous disadvantage and during this time, guess what, I have moved on and started the process of changing the perception of many other areas of your business model, by posting content and offering free and trusted advice on all aspects of the car purchasing process.

This will include finance, the purchasing of used cars and the disposal of your current car/part exchange; so you see what started as a data collection and the manipulation of markets business, under the guise of a new car supply business, actually wants all the parts of your business where there are great revenue streams to be enjoyed. And the final irony; whilst I am driving my business towards the planned successful conclusion, I will not be opening any dealerships or employing any dealership structures of staff; why should I when I can continue to leverage yours?

In reality, my model is now tried and tested in the UK; I have my blueprint for success so it is now all about leverage and launching my proven model into European markets!

Thus the comparison to the Terminator films in the title for this article, where technology ends up destroying the world we once knew! Not sounding so farfetched at the moment is it?

Now in finishing I add the caveat that it is not for me tell any of you how to run your businesses; I am an Automotive Sector Consultant and our business builds business development and sales training programmes for manufacturers and their dealer networks. We are avid bloggers in the Automotive Sector and those of you who have requested Used Car/Market Strategy Discussion and Proposal Documents from us in the last 6 months, know that we tell it as it is. The companies I allude to in this article, and they do exist, (as ever all the research used in the compilation of this article is available to any of my connections and contacts), are only able to grow because they have targeted weaknesses in your current business model, and by using the plethora of platforms now available to target your most precious commodity; your customers.

Anyone who wishes to discuss strategies designed to meet the challenges discussed in the article head on, and how we can help in that process, please feel free to contact either myself at ajb@autoformance.com or my fellow founding director, Malcolm Thomas, at mgt@autoformance.com when it will be our pleasure to make ourselves available to discuss this matter.

Alternatively please feel free to call us on 0044 345 057 3177.

For more information about our services please visit our website at www.autoformance.com

Andrew Banning.
Used Car Business Development Director.