Used Car Stock Acquisition Success Will Come Down To Attitudes!,,,,,,,,,,,,,,,,,,,
Well my current series of articles regarding the importance of used car stock acquisition, (in terms of business survival), has certainly generated some strong comments and opinions; many of which have highlighted some real attitudinal problems and personality differences across the sector.
And it is not that used stock acquisition isn’t the number one business focus at the moment for all used car businesses and franchised dealers, it very much is; as explored in my final article exploring the issue below. An article that also includes links to the previous articles (those in the series exploring the evolving used car stock acquisitions trading landscape) on my Used Car Business Development Blog;
I won’t repeat the content of the articles here that is not the purpose of this article, rather the purpose of this article is to shed some light on my learning and extend an opportunity for greater understanding and self-awareness to those who require the services that professionals like myself can deliver. Because at the moment there is a problem, one that is less likely to affect me or my fellow professionals, but one that will affect the businesses in need of our services.
As much as successful used car stock acquisition campaigns and initiatives are going to be at the foundations of the future success of all used car businesses, (including those operating from franchised dealerships), there is a problem sitting below this existential business requirement. That genuinely successful used car stock acquisition and business development professionals, senior manufacturer based professionals and those owning franchised dealers tend not mix and/or know how to speak to each other.
This is no one’s fault; we all think differently, work differently, have different aspirations and are very different, in terms of personality. The problems that this generates are real though and were actually first explored back in my article published in Nov 2019. But this article aside, in order for franchised dealers to survive, we have got to learn to talk to each other and work together.
Back when the article above was written both manufacturers and their franchise partners thought there was less of a need to have the robust and challenging conversations required, (heads were buried in the sand), but the evolution of the used car market, a process accelerated by the pandemic, has changed all that. So in this article I have decided to try, in good faith, to bring all parties together, to open minds and encourage free thinking; at a time in the evolution of the used car market when professionals possessing the skills I do, are holding all the cards.
To help bring understanding and clarity I thought I would explore the attitudes of all involved and the personalities involved, not because I want to change anyone’s personality, I neither want to nor need to. Besides I worked out a long time ago that you can’t work with hostages; by doing so you end up in a dystopian world, one of navigating a sort of Stockholm Syndrome and where you are pandering to inflexible egos; this is not my journey and neither should it be yours.
So to help, let me be the first to break cover and discuss the personality and approach of the successful used car professional, and “Successful” is the key word here. Well like everyone else involved and in the sector, our personality, attitude and approach, have been shaped by our professional development journey; one which will have invariably started with a franchised dealer network and/or manufacturer.
Unfortunately this will probably have been a time of frustration for the entrepreneurial used car professional, one seeing that there is no limit to the possibilities. Franchised dealers, (unless privately owned – then it is down to the owner of the business and their ambition), tend not to understand used car retailing and eventually over time, as a used car entrepreneur, frustration builds.
From here, and as you get ground down by frustration, you do one of two things; you stay and become a subservient “Box Ticker” where your thinking is governed by (and limited to) the objectives and the level of understanding of others; or you leave. Most (99%) stay in the environment that then restricts and aligns your learning and professional development to a specific set of objectives.
The 1% see the opportunity and leave to sail their own boat and therein starts a very different and possibly more “Rounded” professional development journey. For me, my journey was one of understanding the immediate used car business opportunity and servicing the immediate need. At the time (1998) that was the supply of specialist and luxury used car stock to franchise dealers and independent specialists.
Over time I built the strategic alliances required with likeminded professionals to own and develop businesses (businesses that were then run very hard) that were the largest suppliers of used car stock to the trade and associated franchised dealer networks in the UK.
In this environment (one populated with very successful professionals possessing very strong personalities) you have to know how to build bridges with fellow professionals and businesses; those that you may not “Like” but those that you “Trust;” these two qualities are not mutually exclusive and this is an important point. Serious times and serious businesses call for serious people, and this free speaking environment containing the associated very strong personalities (one a million miles away from the environment festered in manufacturers and franchised dealer networks) you learn very quickly to dispense with politics and develop an open mind encompassing a very thick hide.
Now the journey of succeeding in entrepreneurial environments takes you on a completely different development journey; but one where you realise that you will pay for the education you need one way or another; either from your mistakes or via a structured and disciplined process of education and self-development.
One of the major benefits of this process is that you learn to approach every opportunity with an open mind and (providing you get the correct advice at inception) you start by understanding yourself and your strengths and weaknesses. Not within the bounds of what an organisation needs you to do, but from a perspective of complete freedom which then leads to a higher level of understanding about yourself and your capabilities; one which is truly liberating.
This self-development and enlightenment process enables you understand what it is you are good at, so you can identify where you add most value and therefore what it is you should be doing every day when you go out to work; in the knowledge that everything else can then be outsourced. During this process for me one of the most insightful books I read was “Oversubscribed” by Daniel Priestley. Now this book is not for everyone, nor are the strategies he advocates, but for me it was a vital missing piece of self-development and learning which shaped my approach and business thinking.
Although written primarily with a wide variety of businesses in mind, the premise is one of chasing “Your Market” not “The Market” and this is an important distinction. I won’t bore you all with the details but in brevity, it develops a mind-set and therefore a business, that is determined to only work with those organisations that value your specific skills and then teaches you how to seek those businesses out via your content messaging and marketing; thus the disruptive and challenging nature of my content articles and posts.
Above all else it teaches you to accept that being “Liked” is not your objective, this is a self-absorbed and needy path involving no respect and declining income streams; instead seek to be “Remembered” and “Trusted” then the customers for whom you are a good fit will come.
You realise pretty quickly that those used car professionals who are genuinely entrepreneurial and successful all share this thinking, but that it also causes some issues of personality and “Cultural Fit” with some organisations. The strength of personality that then runs through your messaging and content can also be confusing and intimidating to some audiences.
However you have to be able to build your brand and get your message out there and if I am, let’s ensure that the messaging and content creates discussion with “My Target” audience, not “The Market” audience I will never want to work with, or be a good fit for. And in a market that is evolving at a pace this can create problems surrounding language and perception, problems that are nuanced, depending on the audience.
Manufacturers
Let’s be clear at inception; personalities like mine and those of senior professionals at manufacturers tend (in the vast majority of cases) to mix like oil and water. Albeit, this is not to say that I haven’t worked very successfully with manufacturers in the past.
I have also been called many things by very senior personnel based at manufacturers and it has been fascinating to see how strong and opposing views are met and dealt with by some within this audience. That said, at a time when new car retailing models are evolving and used car retailing will no doubt be on people’s radars, I am surprised by some of the reactions, but this leads me nicely on to manufacturers, the attitudes and sometimes closed thinking that they bring to any discussion.
In the vast majority of cases manufacturer personnel (like everyone involved) are a breed in themselves; in part because of the way they work, as well as the operational culture within which they work. In effect, when it comes to developing used car retailing, (regardless of how senior they are) they are all a cog in a delivery system; one with limited opportunity for creative flexibility, it has to be the objective or else.
Now a caveat; I wish to take nothing away from professionals who have forged their careers in this environment. I couldn’t but the difference between us is that my “journey” brings an appreciation and understanding of a bigger picture; combined with a healthy respect for all the skills involved, by all parties attending any discussions and therefore the flexibility that will be required in the pursuit of what will be required.
That said, manufacturers work in a hierarchal structure (one where everyone knows their place) and in main, then struggle to understand how to work with a professional confident enough to approach discussions from a “Peer to Peer” basis; in order to nurture a successful business relationship, encompassing shared objectives without involving employment like subservience.
In truth even I appreciate that the vast majority of senior professionals based at manufacturers are not my target audience.
In the main, they tend not to be business owners so struggle to think like one; rendering discussions challenging, in terms of alignment and agreement; not for me, but for those representing the manufacturer.
Franchised Dealer Personnel
Senior personnel at franchised dealers tend to fall into two categories; those with a big PLC mind-set (more akin to that found within manufacturers) and those with an owner-driver mind-set. In the main, successful and entrepreneurial used car professionals avoid the big PLC’s, why? Well there is no point, the business environment is too rigid and you can’t speak to the owners and/or the decision makers.
These tend to be inflexible businesses, in terms of how they operate, and therefore fit a certain personality type. Small privately owned businesses however are a totally different proposition and environment; one where trust can be built between the owner/decision makers and successful professionals. These are the businesses that have a chance of accessing the skills requited to secure their used car retailing success, via successful acquisitions, but there are some caveats.
The overriding theme I get from senior personnel working at privately owned businesses is one of “Fear” and a cynicism towards any idea that destinies can be changed, via operating in a different way. Now I understand better than anyone why this negativity abounds; I have lived through the very challenging trading conditions of the last two years as well. But as the market evolves, used car business development opportunities are appearing for those businesses prepared to open their minds and take advantage of them; in my opinion we should all be salivating at the opportunity.
As an example, in my previous article above I advised that in order to succeed in the used car stock acquisition landscape of the future, businesses must adopt a mind-set of “Always Buying Used Car Stock” which was met with some scepticism and disbelief; along the lines of C’mon, how many businesses can actually run along the lines of Never Not Buying?
And comments like this go to the heart of some mind-sets; the truth though is that any used car business that “Decides” it wants to, can sustain a “Never Not buying policy. The only thing holding franchised dealers back is that they don’t believe it is possible themselves and/or don’t have a mind-set open to personal and business development.
The successful implementation of this policy has less to do with money, (of course you need some - but most have the budget required right now), but it has everything to do with developing the skills required to operate in the used car markets that are already here, with further challenges looming on the horizon.
Delivering on this (so therefore success) relies on combining the total suite of used car stock acquisition initiatives now required, to a set of used car operating procedures that are fit for the purpose. I agree that it doesn’t exist in many businesses at the moment, and it is a matter of choice for those concerned, if they want things to change. As ever though, the right people will be at the foundations of success, those with the experience and knowledge to deliver the used car stock acquisition expertise required.
In finishing this point I would just like to take this opportunity to remind everyone of Henry Ford’s famous quote; “Whether You Think You Can, Or Whether You Think You Can’t – You Are Probably Right!”
Conclusion
With the trading landscape in the automotive sector evolving at a pace and facing many existential trading challenges, businesses invariably need different skills to survive. Now, if your business can’t lean on the professionals possessing the experience and skills required and/or have no experience of the skills required, then you have one of two options; invest in and/or acquire access to the skills required, or carry on in the same way as you always have.
This alone presents some important realities; the first being that if you carry on doing what you always have, then (at best) you will only achieve what you always have; only now, even this thinking is flawed! Sometimes markets evolve at such a pace that even this becomes impossible to achieve; I won’t repeat all the content of the previous articles covering used car stock acquisition, how the role has evolved, its importance – in terms of survival and the shortage of professionals possessing the skills in such demand.
So that leaves the final option; investing in and/or acquiring access to the skills required; and here-in lies another problem. I have been building successful used car stock acquisition programmes for over 20 years; it has been a role that has evolved at frightening speed and being immersed in the sector, I know how few genuinely successful used car stock acquisition professionals there are. Especially when it comes to those with the experience, skills and acumen required for the trading landscape of today.
And these are the skills in demand right now however, for those needing them, there are the challenges explored above ahead, along with another; that these professionals don’t need a job! Rather we tend to work in strategic alliances that are then success based and involving revenue split arrangements.
Having made a success of working for ourselves, we don’t need to hide behind a basic salary, the associated benefits and a company car; and this tends to confuse owners of businesses in any exploratory discussion. A discussion that will result in those owning businesses entering discussions with some very confident and knowledgeable professionals at the top their game. So I would say to all owners of businesses requiring these skills; if you require this defined skill-set, you will probably need to adapt your thinking.
Serious times require serious professionals and grown up business solutions; it is no good pretending that the world of acquiring used car stock holdings (or any commodity for that matter) is a “Fluffy” world where everyone wins, it isn’t. It is a fast paced cutthroat environment where in order to secure the services you require, both you and your business will be put under a forensic microscope, as you enter into a two way exploratory discussion; not an interview.
Make the mistake of approaching the building of strategic alliances as an interview and you will be left bemused, disappointed and without access to the skills your business requires. You see, your success is my success, so it is important that we share the same ambition. I will start the conversation by saying two very important things, which are; “Look No One Likes Change, But Everyone Likes Winning!” And perhaps more importantly I would then point out that it is not important that we “Like” each other (that is a luxury); only that we “Trust” each other.
I would then go on to reassure the owner that they have an opportunity to survive and grow their business; and then explain what that will involve. Now there is no doubt that this will not be for everyone, and let me explain why, because this goes to the very heart of whether I would work with a business and its owner, or not. If you have experienced drastic reductions in new car registrations (as you all have over the last 2 years and are probably experiencing still) then the available used car vehicle park has been drastically reduced, in terms of volume.
So, in terms of securing your survival via a programme of controlling access to used car stock holdings, we are going to have to target the customers of your fellow franchise holders. So as much as any campaign will be run to the very highest standards of professionalism, nothing can be “Off Limits!” If at this stage, when I will be looking for your reaction, I think there hesitancy, we will continue with some light discussion, but the meeting will be over. We will not be a “Good Fit!”
Unfortunately, only business owners grasping this harsh trading reality will survive and secure access to the skills required, but this will necessitate open discussions, open minds and working in ways that you are not used to; in order to build the business relationships required with fellow minded business professionals. Those operating at your level, which changes the dynamic of the working relationship.
And this is important, because the market value of these skills renders employing a genuinely successful used car stock acquisition professional financially prohibitive. For sure you can employ a buyer, but this is going back to the past, doing things the way you always have, and only going to lead to failure. A buyer may well be part of a successful used car stock acquisitions operation, but they are a single cog, not the answer.
Those grasping the seriousness of the current trading landscape and curious to find out more about how a successful used car stock acquisition professional can work with your business; I will be working with three businesses over the next 12 months to deliver the used car stock acquisition expertise and initiatives required, for those businesses to survive and prosper in the used car market to come.
Should you wish to explore synergies and the potential to collaborate in this regard, please do not hesitate to contact me, so we can arrange a mutually convenient time for an exploratory call.
Andrew.
