For lovers of film, let us draw on an analogy between what is reality and perception in the motor industry, we call it the “Matrix Moment,” the moment that realisation hits, when you take the “Red Pill” not the “Blue Pill” and make the decision to change knowing full well that it will be hard work, but with the understanding that your previous efforts were in vain, just an illusion. We say this because the most damaging lie told and/or believed in the motor industry is this; “Get The New Car Job Right And The Used Car Job Will Follow!”
We have heard this countless times over the decades that we have been constructing our used car business development consultancy and training programmes, (as well as running our own successful used car businesses), and let us reassure you of one thing; the more you focus on this “Mantra” the more your business is doomed to fail, maybe not immediately, but probably via a death by a thousand cuts!
The difference between those succeeding and those failing is a simple one when read in a statement, but involving a totally different focus in the delivery because in reality the statement for success should read “Get The Used Car Job Right And The New Car Job Will Follow!”
Now we can see our manufacturer based audience reading this open mouthed, in disbelief, that the success of their core business model, their life’s work, can only be achieved if a business they have ignored for too long is a success; and worse than this, a business they have never put any importance on or tried to understand! Now we fully understand how difficult this moment of realisation is and sadly this article is not the platform for us to elaborate on this statement, the process of changing minds is far too great a process to be completed here. We more than anyone realise the journey manufacturers have to go on to grasp this reality and to then share this with their franchise partners, is a difficult one; with short term contracts and a culture that has led to automotive professionals treating pivotal positions as just a stepping stone up the ladder of promotion, no one is being given the time required to change outcomes!
However, anyone wishing to explore this and discuss how things can change can feel free to contact us, when we would be more than happy to elaborate on this and make time available to discuss how new car performance can been improved and how your new car business model can be secured, from a stable platform; one of used car retailing success. Sadly we realise more than anyone, that not all will grasp this in time and will continue to re-tweak the “Law Of Diminishing Returns” business model; their current new car business model.
We call it the “Law Of Diminishing Returns” business model because whilst you continue to focus on a very narrow new car business model, selling new cars for ever decreasing and/or no margin, paying franchise dealers out on volume bonus and wondering why they are then offering new car stock to internet based independent new car businesses, the likes of Carwow,,,, (well just when did anyone think that this could lead to a profitable future?), the enlightened businesses are building their future and securing used car market share, knowing full well that at the moment they are lucky; lucky because the majority of you are fighting the wrong fires and leaving the used car market to those who understand how important used car market share will be in determining the winners and losers!
And they can afford to be more than a little smug in their business because having been on this journey, the journey of being enlightened enough to see that things must change, they have built their used car business and therefore know that they still have years to continue to build their trading advantage. We say years for good reason and because that is probably how long it will take for decisions to be made at manufacturer level and for the investments required to be made; and that most of you probably won’t bother!
If this post has resonated with you and you would like to take the first step on the journey, (the journey of opening minds to different solutions), or 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 are trading in these challenging used car markets themselves, have faced the challenges of fast paced evolutionary used car markets and know how to develop a successful and profitable used car business development and training 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, been at the forefront of the development of approved used car programmes for a host of manufacturers and more importantly, are still trading and running used car businesses in specialised used car markets. 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 07796 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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