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Introducing Dealers United - Competitive Advantage for Privately Held Car Dealers

 

The Power of Dealers United

Dealers United puts the power back into the hands of single point dealerships by leveraging the purchasing power of many dealerships and turning it into BIG savings.


  • Benefit Number One Guaranteed Savings

    Together we will build stronger relationships with vendors

 

 

  • Benefit Number Two Share Information

    Share best practices and experiences with vendor's products and services.

 

 

  • Benefit Number Three Work Together

    Dealers United will enable private dealers to work together to maximize savings.

 

 

  • Benefit Number Four Ensuring your Future

    United single point dealerships working together against the conglomerates.

 

 

 

  • What is our web app? What does Dealers United do?

    Dealers United enables independent dealers and small dealer groups to generate big savings from vendors by leveraging multiple dealerships’ purchasing power. Today, independent dealerships and small dealer groups are unable to demand the same level of discounts from their vendors as big dealer groups are capable of achieving. Dealers United levels this playing field and allows independent dealerships to compete with the purchasing power of large dealer groups.

 

  • How does our app work?How does it work?

    It's simple! When a dealer joins Dealers United our cumulative purchase power increases. As vendors offer new and/or existing products for sale, we negotiate to purchase their offerings as an entire group. Vendors accept our offers based on the number of dealers that purchase (just as they do when the large auto groups negotiate with them). We make the offer to all Dealers United Dealers. If the number of dealers needed to make the purchase is met then you save!

 

  • Why do you need it?Why do you need it?

    Big dealer groups leverage their size to negotiate lower vendor contract rates which allows them to lower their cost of doing business and makes them more efficient. By joining Dealers United, independent and small dealer groups can level the playing field and share in similar if not even better vendor discounts than the big dealer groups already enjoy.

 

Helpful Dealers United Links

Connect with Dealers United via Social Media

Dealers United

1233 North GulfStream Avenue PH1
Sarasota, Florida 34236


Frequently Asked Dealers United Questions


What is Dealers United?
ANSWER: Dealers United is a network of  dealerships that have come together to create a collective buying power that allows them to compete with the larger public dealerships.
How does it work?
ANSWER: Private Dealerships join the network and get access to deals offered by our qualified vendor network. Each deal presented to the dealers is guaranteed to offer savings. 
How do you guarantee savings?
ANSWER: The ability to negotiate better terms and pricing with vendors depends heavily on the volume you purchase. A large public dealership can negotiate better pricing with vendors due to the volume they buy. Dealers United achieves the same results by bringing together a large network of private dealers.
Which vendors are part of your network?
ANSWER:  Every time a dealer joins our network we ask them for a list of their preferred vendors. We then match with our vendor network, and if we see multiple dealers working with a vendor we then consider adding them to our network. Our goal is to build a quality network of vendors our dealers recommend.

Why we founded Dealers United

In 1990, there were just over 900 dealership under large* dealer group control. Today, there are around 1,400 dealerships or a 50% increase in only 20 years! Comparing these numbers to the auto industry, there was about a 35% contraction in total dealerships over the same time period!
What does this mean? 
Essentially the bigger dealer groups are getting bigger while the smaller and independent dealerships are continuously getting smaller in terms of overall market share.
Why does this matter? 
As large dealer groups’ market share increases, they also gain competitive advantages allowing them to run more efficiently than other dealerships. They are able to run more efficiently because they use their power in numbers to realize additional savings. In turn, they are able to take these savings and reinvest them into additional training, upgrading building and facilities, additional advertising, and much more.
Will big dealer groups’ market share continue to increase overtime? We believe their market share will continue to grow at a very rapid pace due to a number of factors. Let’s looks at history first. The first public dealership group went public in 1996 with 0.4% market share. In 2009, their market share soared to 7.3% which is a 1700% increase in only 13 years!
How are they able to grow so fast? 
They have CASH! Right now, many dealers have been reading about how big groups are in acquisition mode. This is because they have all the cash to do it even after the great recession we went through the past few years. Additionally, since banks are not back to “normal” lending levels, they are requiring much more capital to buy dealerships which makes it a perfect buying time for big groups to gain market share.
What happens if big dealer groups’ market share continues to increase and they become even more efficient as they grow? The question should not be “if” but rather when. Independent dealerships and small dealer groups are essentially frogs in warm water. Currently, the market share that public groups have is not a major threat to the industry. However, years down the road it absolutely will be and it will be too late to recover from if nothing is done to level the playing field.
What does this mean for our industry? 
Wal-Mart. Yes, Wal-Mart. Think about Wal-Mart because this is where our industry is headed whether you want to believe it or not. It is almost next to impossible to compete any longer in the general merchandising industry unless you are a big company like Wal-Mart or Target. Private groups or family owned general merchandising stores cannot compete with these big companies any longer due to major differences in the cost of doing business between big groups like Wal-Mart and smaller family owned businesses. In our own opinion and through our research, the auto industry is slowly beginning to mirror what happened to the general merchandising industry over time.
It is not happening over night, but it is happening and the facts prove that market share gains of big public groups are on the rise and will continue that way.
What can dealers do to keep their cost of business down and stay competitive in this industry?
There is not an exact silver bullet to remedy this situation, but Dealers United was founded on the premise of educating dealers first on this situation. Secondly, Dealers United came up with a plan to help dealers fight this cause and ensure that there will always be an opportunity for family owned and operated stores to compete with big dealer groups.
Dealers United has created a system to help dealers significantly reduce their vendor expenses by combining the purchasing power amongst many dealerships across the country and giving the savings back to the dealer. This will allow our dealers to invest these savings back into their businesses to help them run more efficiently at no cost to the dealer. Expect to see vendor savings between 20-75% off!
To learn more about the cause, please join us today! We are eager to work with you and make your dealership not only more efficient but also add more to the bottom line!

Join Dealers United   No Fees. No Hassles. Just Savings.

Sign Up!

Tags: Car Dealers, Competitive Advantage, Dealers United, Held, Introducing, Privately

Views: 327

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Replies to This ADM Discussion

I was fortunate enough to spend some quality time with Jesse Biter discussing his vision for DealersUnited at his offices in Sarasota FL. I was impressed and excited to have witnessed what I believe is the solution for independent auto dealers challenged by the consolidation in the auto industry that demands that they provide more for less to remain competitive.

Networking has many values and advantages in business and DealersUnited is another example of how relationships can be leveraged to provide resources and efficiencies beyond the scope of any individual.

Once again, my point is best made by my often stated philosophy of .... what are friends for!   

What an ultra-clever idea! Leave it to Jesse to put together a true innovation in the automotive industry.

I've known Jesse Biter since the early days of HomeNet and he is a true entrepreneur and auto industry visionary... What Dealers United has defined as their mission for participating automotive retailers will be a task that requires resources, a strong sense of ethics and credibility established with the suppliers, as well as a substantial financial commitment... These are all within Jesse's scope of capabilities. 

 

The last item that Dealers United requires for success are enrolled and actively participating dealers.  This is why all of us who depend on a thriving and prosperous retail auto industry for our livelihoods should encourage privately owned dealers and groups to enroll in Dealers United.  Automotive Retail thrives upon independent, locally owned dealers and dealer groups that are more closely connected with their regional markets and the communities they support economically than a publicly traded mega-group can possibly be. 

 

I want to encourage all non-public automotive retail organizations to enroll with Dealers United and actively participate using Dealers United procurement resources so that you get the maximum benefit of this outstanding approach to developing a source of collaborative buying power.

 

Ralph Paglia

505-301-6369

RPaglia@gmail.com

This is a great concept.  I look forward to being a part of this and helping more dealers utilize this service.

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