Automotive Digital Marketing

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It's Good To Be The King !

 

The King of Arbitrage.....

The practice of taking advantage of a price difference between 2 or more markets, striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices

When you're the King.....
You help the market run more efficiently.....
You have an information advantage over other dealers.....
Even if it's only for a few days.....
Sometimes it's only a few hours.....
But.....
YOU.....
Have access to information earlier than others.....
Much of the information is pricing.....
That information is public.....
Your advantage won't last long.....
Some of the information comes along as a quirk.....
A specific motor.....
A specific seating capacity.....
A specific transmission.....
And you are the King.....
You find a way to use that information.....
You find a way to leverage your checkbook.....
By turning units.....
You listen to your Ravenous Market.....
You capitalize on the brief imbalance.....
BOOM !
You made a profit.....
Soon.....
You consistently make GOOD profits.....
And all the while.....
Looking to be more efficient.....
Searching for more audience sources to sell to......
More buying sources.....
All this information.....
Allows YOU.....
To keep one step ahead.....
And that what it takes.....
To keep your crown.
 

Carvana

 
Gains in on-line retail car sales are everywhere.....
And with on-line only dealers such as Carvana leading the way.....
Tracking these gains becomes clearer.....
Founder and Chief Executive Officer Ernie Garcia is confident:
The path to profitability is clear.
He believes they are executing an incredible customer experience every single day.....
And they are able to deliver that experience in the palm of your hand......
An easy-to-use e-commerce platform.....
That allows customers to navigate all the different areas involved with buying a car.....
Right from your PHONE !!
Carvana posted record revenue in Q1.....
Gross profits per unit climbed from a $200 loss back in 2014......
To a current level of $1400.....
Turning at least 10,000 units by the end of the second quarter.....
The math is easy.....
Over 14 million.....
Garcia expects the gains will continue as the company looks to strike the right balance.....
In inventory levels.....
And increased conversion rates.....
We do expect to be GROWING inventory, with a goal to get in line with traditional retailers
And turn units in 30-60 days.....
That is an upside.
 

Auction Mobility

 
Don't think that consumers are the only ones able to buy a car by phone.....
Now.....
More and more dealers are attracted to Mobile Auction formats.....
Daily engagement in the wholesale auction experience.....
And IT IS TRULY MOBILE.....
Bringing the auction directly to the dealer location.....
You get 100% of what you see at an auction.....
But its brought to the dealership......
To sell their trade-ins.....
Some locations host a sale once a week.....
Once every other week.....
Or once a month......
Depending on the volume of the dealership.....
It's a mini Manheim sale.....
Conducted out of a trailer or bus equipped to handle an auction, simulcast, and an auctioneer !
Manheim Auto Auction has been expanding its mini mobile project over the past 6 months.....
In addition to a single dealership consignor.....
Mini mobile auctions can bring in 40-50 different sellers.....
With a one, two, or three lane format.....
Allowing access to smaller markets.....
Manheim Auto Auction brands, markets, and advertises them.....
And the revenue and expenses flow up to the parent auction......
Digital technology now allows dealers to check out extensive pictures.....
And pre-sale inspection lists....
To give you the confidence to bid online.....
It allows dealer managers to remain in their stores and focus on retail.....
Or in my case.....
I can stay on my couch and bid !
 
 
Not to be outdone.....
ACV Auctions continues to add new buyers and sellers.....
Their format:
A 20 minute live auction on a single unit.....
Which gives dealerships the flexibility to sell trade-ins as they arrive.....
And they can reach thousands of buyers in minutes.....
My phone is churping as we speak.....
Letting me know a vehicle is LIVE !
(Hold on while I check it out)
OK....
Where was I......
It's less complicated and less structured than the mini mobile auctions......
You just flat out bid on your phone......
No auctioneer.....
Bid until the price gets to high.....
Or you own it.....
The app is consistently upgraded.....
Better pictures.....
Better descriptions.....
Easier payment methods.....
Everything you need to know to help YOU determine what you can pay.....
And still make a profit.....
With the filters that are available......
We have the potential to see 20-30 cars a day that fit our system.....
And once again.....
I can sit on my couch and bid !
 


 

 
May was a good month.....
Our weekly sales average of 67%, combined with our OVE.com average of 30%......
Allowed us to turn an amazing 97% of our inventory.....
Grosses on all units were down from March and April.....
But we are now able to adjust to current prices.....
And that knowledge makes us optimistic for the slower summer season.....
We can stick to our guns when it comes to paying the right money.....
And not overpay.....
We'll sell fewer units.....
But what we are able to sell will be profitable.....
And with fewer units.....
Maybe we can take a day off.....
 
 
Viewership.....
One of the many features of using OVE.COM.....
Manheim's online, 24 hour, dealer to dealer listing platform.....
Is the ability to track WHO is paying attention to WHAT.....
It records when someone views your listing.....
Letting you know if there is a lot of interest.....
OR.....
Nobody wants it.....
As you continue to use OVE.COM.....
Give viewership its due.....
It will tell you about trends......
You'll have the knowledge you need .....
To serve your Ravenous Market .....
Once again.....
While I sit on my couch and SELL !
 
Out for now,
 
Barry J. Neuman
Member of Manheim's "Superseller" Club

 

Views: 35

Tags: auctions, auto, automotive, car, dealers, industry

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