The present market and business opportunity can be summarized as follows:
The car buying process is changing. It still takes as many months to complete the journey, but 90% of new car buyers are now starting the shopping process online, then they visit car dealerships for a demo, and then at least half of them come back online to find the best deal.
Over the past decade demand has been steadily growing for negotiating online. Now perceived by many car buyers as a less strenuous alternative to sparring with a car salesman. Increasing from just 1% in 2000 to 44% in 2008 and now estimated at over 50%. In some emerging markets demand is even greater. 87% of Brazilians would rather make a deal online.
Satisfying this demand has already proved to be a significant technological challenge, but also a great business opportunity for anyone who can get it right. These are the numbers:
Worldwide and US sales break down as follows:
USA New & Resale Automobiles:
Total unit sales: 36,000,000 units
Total sales value: $720 Billion
Online deal demand @ 21%: $151 Billion
Online sales commissions @ 2%: $3 Billion
DealMaker revenue for each 1% share: $30 Million
Worldwide New & Resale Automobiles:
Total unit sales: 276,000,000 units
Total sales value: $4.4 Trillion
Online deal demand @ 40%: $1.76 Trillion
Online sales commissions @2%: $35.2 Billion
DealMaker revenue for each 1% share: $352 Million…
turday to each week of their year and being open to serve consumer's on their schedules. My thinking for the near future is we have more hours coming before less.
Supply demand. Supply of time vs. demand on that time. A dealer working 9am - 5pm is not meeting the consumer's demand, they are limiting supply in an attempt to structure demand. Today's working family, to me, is exceptionally time sensitive with their availability of time being typically after 5pm and weekends. Keith, your premise might succeed if all the players were on the same page, but I suggest consumers would flock to the dealer that was open during their convenient times vs. taking a day off (losing $$$ of vacations time) from work to buy a car.
On the other hand, the idea of encouraging structured scheduling for sales activities that gives the consumer and dealer what they want is ideal. I would love to see some success stories of how dealers are structuring their scheduling for sales.
My 2cents from the front.
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