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Dealers United Interview on Automotive Digest

Jesse Biter sits down with Automotive Digest to discuss why Dealers United is a win for dealers and vendors. For more information, please visit: http://dealersUnited.com

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Comment by Dee Ramonte Rawls on November 23, 2011 at 5:16pm

Auto Retail Past was a vendor free-for-all wherein a product or service needed to be only 14% optimized (think of the BIG business of newspaper classified ads) in order to garner a following and generate accounts payable from dealers.  Auto Retail Future will demand a greater, more optimized value proposition from vendors.  Although Dealers United offers a significant model for chopping margin from vendors' bottom lines by using collective buying power of a 'dealer network' to demand lower pricing overall, the answers these dealers will need to grow their businesses independent of one another are sure to require approaches to vendor relations that are customized, distinctive, and effective in accordance with much more than the price they may have to pay for a product and/or service.

As you all have heard me say before, the challenge of Auto Retail Future is not to simply sell the sizzle and get the park-goer or prospect into the gate, but to be sure the proper engineering has been implemented to achieve the 'ride of a lifetime' experience for the amusement which is being promoted.  That's right, "The Future is an Amusement Park!"

As much as a success as the HomeNet story is considered to be for Auto Retail Present, I am anxious to see how this Dealers United model develops.  Among the ranks, though, I doubt anyone has the chutzpah to ask about what the model means to dealers after they save a few thousand bucks.  What is the next move after all the vendors are on at 30% less?  How does the lower cost translate into greater effectiveness?  I am not the one who believes we will be doing smaller, family-owned dealer organizations any big favor towards competing with the AutoNations of the world simply by arbitrarily cutting their vendor costs.  The margins are steadied at historic lows for Variable, and Fixed overhead is rising fast.  Unity among the underdog (smaller, family-owned dealer organizations) is a must, but there is a much more optimized version of it.  Think even more optimally, Dealers United champions!

 


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Comment by Philip Zelinger on November 20, 2011 at 10:28pm

This video is a great teaser about Jesse's latest vision for the auto industry and yet another example of the power of networking.  I had the good fortune to meet with Jesse at his offices in Sarasota to listen and learn about Dealers United during its formative stages and I strongly advise you to contact him after watching this video to get the whole story.

The devil is in the details but in this case the details are all angels!  I look forward to having several of my vendor partners reviewed by Dealers United and I have already directed all of my dealer clients to sign up for the ride; may the best vendors win!

After all, what are friends - and Dealers United - for!

 

Comment by Ralph Paglia on November 20, 2011 at 10:17pm

The whole concept behind Dealers United is fascinating and one of those rare "Win-Win" situations that could benefit both car dealers and auto industry suppliers.  Regardless of anything else, this video clip is well worth watching so you can see exactly what Jesse Biter has in mind for the newest enterprise from the entrepreneur who built up HomeNet and then sold his company to AutoTrader.com for a surprisingly large sum of money.  It is fairly safe to say that Dealers United will be well capitalized and well managed with Jesse Biter at the helm.

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