There is a lot of buzz out there that many companies, including the auction giants with their subsidiaries, are looking at ways to “go around” auctions and lower prices to almost ludicrous value levels.

The true buzz should not be discussing “going around” today’s technologically enhanced auctions, but rather seeing them as the core around which mobile technologies branch out to create value in the remarketing of today’s diverse portfolios.

“Going around” technology is simple when you are selling “cookie-cutter” low-mileage off-lease or RAC units that are easily integrated into Auto Grade and other evaluation methods, but not as effective in remarketing today’s average 11-year-old on the road trade. And at some point when the volume of off-lease and RAC turn-ins goes viral, the “going around” methods lose the ability to handle short-term high volumes, and that is a key variable in the traditional brick-and-mortar auction process.

One thing that continually amazes me is that with all these competitive challenges we see, it’s assumed that their technologies are non-existent, at or superior to those currently being used by NAAA member auctions.

The hubris in that contention can clearly be discarded by some simple examples, even from a small independent auction like mine.

— All lanes 100 percent simulcasted.
— All vehicles have condition reports and multiple images and some have video presentations.
— Carfax and Mexico Ready information are tied into the fabric of the run lists to maximize the two items listed above.
— Everything is available on our websites and everything is scaled to any mobile device, including Simulcast.

So, the products that compete with us are just part of the fabric of who we are. And the niche products narrow the focus of the buyers as they assume that all buyers will go online to purchase every year, make, model and mileage vehicle, which is far from reality and thus narrows their bidder/buyer base.

What these companies are selling are low price, not great service or maximum value for the products they try to remarket.

What I enjoy and know is that my partnerships with companies like WTG and The Web Guys, has allowed us to create mobile tools both in our website and in our app that creates a seamless integration with our consigning partners and makes us multi-dimensional, and thus not a one-venue-focused remarketing company.

Better to be online and in-lane and widen the base of consigners exposure while you still avail yourself of fixed platforms like SmartAuction, then narrow your model to the narrowest possible exposure.
 
As I said, mobile + auctions = remarketing success. Mobile only = limited exposure and lowered returns, but I guess you get what you pay for.

Editor's Note: This column was written in April. Jim DesRochers is vice president at Dealers Auto Auction of the Southwest. As with any contributed content, the opinions expressed in this and other editorial columns are solely that of the author's and do not necessarily reflect those of Auto Remarketing or its parent company.