PHOENIX -

After 25-plus years as an auction general manager, one thing never changes, and that is the ongoing discussion of lane location and run position.

In 1995, Manheim honored me with a “Big Idea Award” for creating an incremental cost factor for “perceived” better run placement that I labeled “Prime Time.”

Has life changed in 20 years? You bet. Auction consignors started making “gentle requests” to run earlier, in the center, with their consolidated dealerships, away from their competitors.

And the better the perceived location and the greater the volume, the less they tended to share in selling fees, and price became an industry market share tool.

But what truly comes first? The cart, the horse, the driver, or is it a combination of all three? Is the make, model and year more important than run placement, or are price and announcements?

If lane placement is the key factor in driving price, why aren't “early-ish” numbers driving higher selling fees as they drive higher prices?

Or is it like MPS/CPS, where consignors say build it, and we will come because it's needed and will drive price, but with no ROI adjustment to those costs, just like normal net selling is?

The truth of the matter is ALL the above drive price and more:

1. Images

2. Simulcast

3. Accurate condition reports on all vehicles run

4. Timely arrival at the auction so they can be properly marketed

5. Floor prices and a representative on the block

6. Dealer attendance to total consignment ratios, including targeted niche vehicle buyers, in-lane and online

7. Vehicle history reports

8. General market and seasonal demands

It’s not a simple business, but it’s a seamless and very cost-effective one on both sides of the auction transaction. I have said it before and I will repeat it again here: the industry needs to stand up for its technologically advanced brick-and-mortar facilities and value them for the true partnerships they have created in the automotive industry.

Editor's Note: This column is part of our special coverage of the NAAA Convention in the Sept. 15 issue of Auto Remarketing, which includes in-depth features on top auction trends, auction photos from the past year and much more. 

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.