Many dealerships have a promotional moniker to distinguish itself in their market; for example touting the biggest selection of used vehicles.
Hireology chief executive officer and co-founder Adam Robinson recommended that stores also generate a local reputation that helps the rooftop generate quality “ups” who could be high-performing, long-term employees.
Robinson described the importance in light of how the firm collaborated with Cox Automotive on a study that showed stores have a 67-percent annual turnover rate among its sales teams, and the average cost of hiring a new dealership employee is $10,000.
“The very first step in establishing a talent-centric strategy for dealerships is a focus on their employment brand,” Robinson told Auto Remarketing during a phone conversation on Thursday. “If your consumer brand is the face of your company to your local market, your employment brand is what your local labor market thinks of you as an employer and a place to work. It’s the single most influencing factor in whether or not a dealership is going to be successful.
“Similar to a consumer brand, when your employer brand is strong, the dealer is going to get more people opting in to the process,” he continued. They’re going to get more people to take a look at the brand and decide that it’s for them versus just trolling the Internet looking for open jobs and slinging resumes all over the place with automated software, which happens these days.
“A strong employment brand is a like a filter in front of the process; almost like a magnet because it attracts the right people and repels the wrong people. That’s what you want,” Robinson added.
“Once you have those strong brand elements in place, you can take full advantage of a robust hiring process. That’s the recipe for success,” he went on to say.
Currently, Hireology is working with 2,000 dealers in the U.S. to help them assemble the best workforce possible. Robinson acknowledged dealerships “are struggling to hire and keep the right people,” as the study showed.
“The study confirmed what we’ve seen on the ground every single day,” he said.
Robinson described characteristics potential new employees should have as dealerships evaluate candidates for various store positions, stating that, “It’s not easy, but it’s also not complicated.” He began by noting great potential employees have to be customer-experience focused
“If you get intrinsic value from providing great service to others, and that can come through specific product knowledge of automobiles, it could come through a love of the product, it could come through the enjoyment of helping people, that’s really a prerequisite for a role in this environment,” Robinson said.
Robinson also mentioned that candidates also should demonstrate a desire to learn and grow during their dealership career.
“That really comes down to accountability,” he said. “People who are service oriented and … they believe destiny is in their own hands, that’s a fantastic combo.
“What we recommend to our dealers is that they’re screening for those elements for all roles in the store during the interview process. When they do, their hiring results and retention should both go up,” Robinson concluded.
While car shopper interest in Houston has just about fully recovered from a 21-percent decline in the three weeks after Hurricane Harvey first made landfall, shopping recovery has been slower in Florida’s cities following Hurricane Irma, according to new data from Jumpstart Automotive Media.
The company examined shopper interest trends three weeks after Hurricane Harvey and Irma and compared them to the three weeks before the storms.
In Florida, the largest decline is in Fort Myers and Naples. Car shopping in the cities has decreased by 43 percent three weeks after Irma hit.
In Tampa Bay, shopping is down 28 percent compared to the three weeks before the storm and down 25 percent in Miami, Orlando and Jacksonville.
Despite the overall decline in shopper interest in the wake of Irma, trucks have seen a rise in shopper interest led by midsize pickup trucks with a 21 percent gain in shopper interest, followed by heavy duty and one-ton pickup trucks with a 14 percent increase and full-size pickups with a 3-percent rise in interest compared to the three weeks before the storm.
In Houston, pickup trucks also represent a large share of shopper interest post-Hurricane Harvey, according to Jumpstart.
“Growth in interest for midsize pickup trucks in Houston and Miami (post hurricane) makes sense since these trucks are more compatible with an urban lifestyle, as well as offering the necessary comfort, space, versatility and features today’s shopper looks for,” Jumpstart senior analyst of strategic insights Colin Thomas said in a news release.
Three weeks post the storm, midsize pickup trucks, one-ton pickup trucks and full-size pickup trucks are up 26 percent, 11 percent and seven percent, respectively compared to three weeks before the storm.
Nick made the trip to Washington, D.C., this week for NIADA’s National Policy Conference and connected with NIADA president David Andrews and Kathy Collins, who is the industry relations manager at CARFAX.
We discussed how independent dealers are faring this year and how the industry is handling thousands of vehicles damaged by Hurricanes Harvey and Irma.
Check out the conversations below.
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Online auto financing platform AutoGravity reached a new threshold.
The company said on Wednesday that it has surpassed $1 billion in finance amounts requested on the AutoGravity platform.
Additionally, AutoGravity has announced the launch of real-time inventory for new and used vehicles from partner dealership groups across the nation. Shoppers can browse real vehicle inventory on dealership lots, find the specific model that's right for them and secure up to four finance offers in minutes on the AutoGravity smartphone app.
More than 750,000 shoppers have downloaded AutoGravity, collectively requesting more than $1 billion in financing. These users can now search inventory by car brand and model year as well as characteristics such as body type, drivetrain and color.
Shoppers can find their desired vehicle waiting for them on the showroom lot for the payment they want. With the unit selected and offers in hand, users can pick up their vehicle and drive off the lot with the confidence of knowing they have secured a “fair deal,” according to AutoGravity which has partnered closely with the largest dealer groups in the country to design a seamless process by which dealers can easily load inventory feeds, including vehicle details and pictures, to AutoGravity's secure platform.
“With over $1 billion in finance amount requested, AutoGravity is gaining momentum toward digitizing the car buying journey, and real-time inventory brings our award-winning technology to the next level,” said Andy Hinrichs, founder and chief executive of AutoGravity.
“We worked closely with our dealer partners, including some of America's largest dealer groups, to give car buyers access to the showroom right from their smartphones. AutoGravity technology has made that possible,” Hinrichs added.
Online used-vehicle sales platform Instamotor announced on Wednesday that it will allow dealers and private sellers in California and Texas to list their available inventory for free on the company’s iOS, Android and web platforms.
By listing on Instamotor, dealers will get:
• Access to more than 100,000 serious car shoppers monthly
• Free inventory listings with viewership and engagement metrics
• Free vehicle history reports for each vehicle listed
Instamotor, which had previously been entirely peer-to-peer, made this decision after continuously receiving interest from dealers seeking relationships and opportunities with the marketplace. The company insisted dealers recognize that listing on Instamotor is an easy way to get additional exposure for their inventory from customers they may not otherwise be able to reach.
Unlike other free mobile marketplaces, Instamotor users are “serious buyers,” according to the company.
Looking ahead, the company will implement certain features to qualify buyers even further, giving sellers the opportunity to clearly identify and contact ready-to-buy shoppers.
“As a former dealer myself, I understand how valuable it is to gain exposure for available inventory through as many channels as possible, especially via mobile,” Instamotor co-founder and chief operating officer Val Gui said. “By listing on Instamotor, dealers will have the opportunity to make meaningful connections with more than 100,000 users on our marketplace.”
Since its inception, Instamotor insisted that it has provided a safe and transparent way for used-vehicle sellers and buyers to transact. Each vehicle is screened to identify issues such as branded or salvage title, lemon history, odometer inconsistency, weather damage and more. All major issues are flagged on each listing so shoppers can be informed before making their decision.
Instamotor is currently available in the markets of San Francisco, Los Angeles, San Diego, Dallas and Houston, with plans of expanding into additional markets in 2018.
“The way consumers are shopping for and purchasing cars is ever-changing, but we will continue to keep the experience on Instamotor a safe, and easy one,” said Gui.
Gui previously discussed with Auto Remarketing how the company to growth through initiatives like what it revealed on Wednesday.
Since combining four companies a year ago, provider of marketing and technology services Affinitiv announced Tuesday it has finalized its executive team and will soon introduce an integrated platform that offers dealers an end-to-end marketing solution.
Last year, the merging companies included DPS, Peak Performance, OneCommand and TimeHighway.com.
Additionally, since then, Affinitiv has also acquired WSA Solutions, a provider of wireless service-tablet software to auto dealer fixed ops departments.
Affinitiv’s new solution is designed to keep car buyers connected to their dealer up until their next purchase.
“We know your customers. We know what they like and what they respond to. We know where to find them and how to drive them to find you," Affinitiv executive chairman Scot Eisenfelder said in a news release. "Making the sale is just the beginning. Creating a connected customer for life requires a whole new approach.
"To increase customer retention, dealers need to get past using tactics like oil change coupons to draw in customers. Our platform helps dealers understand what works and doesn't work from a communications standpoint, to keep their customers engaged and committed," Eisenfelder continued.
In addition to Eisenfelder, on the heels of celebrating the company’s first anniversary, Affinitiv has brought aboard Adam Meier, Stan Megerdichian, Hans Bodine, Jillian Slagter, Karen Dillon and Kevin Winter to its executive team.
The executive team
Eisenfelder is a 25-plus year automotive market veteran, according to Affinitiv. Prior to Affinitiv, he held positions such as senior vice president strategy at AutoNation and senior VP of product management, strategy and marketing at Reynolds and Reynolds.
Meier has been appointed chief operating officer. He has nearly 12 years of experience as chief finance officer and as a board member at Brandmuscle where he led the acquisition of four companies.
As executive VP of OEM relations and strategy, Megerdichian will focus on bringing the latest technology solutions to current OEM partners, as well as forming new OEM relationships. Most recently, he was president and chief executive officer of Peak Performance Marketing Solutions, which he founded in 1991.
Bodine has been appointed executive VP of sales. Previously, at Cars.com, Affinitiv said he helped to build a successful team of experts over more than 18 years.
Slagter will serve as chief people officer. She brings 20 years of HR and recruiting experience to her new role. Most recently, she spent 11 years at Nielsen as vice president of HR.
Dillon has been appointed executive VP of service scheduling. She has over 30 years of experience in the auto industry in various sales, marketing and executive positions, according to Affinitiv. And in 1984, Dillon became president of TimeHighway.com.
Winter brings more than 15 years of experience both developing and managing automotive sales and service CRM programs for OEM clients to his new role as Affinitiv chief client officer. Most recently, he work for Epsilon where he served eight years. Prior to Epsilon, he also worked for R.L. Polk & Co, according to Affinitiv.
In the past year, Affinitiv said it has garnered preferred relationships with a dozen OEMs, including: BMW, Kia, Lexus, Chrysler, Volkswagen, MINI, GM, Porsche, Mitsubishi, Audi, Volvo and Maserati.
One of the most important events hosted by the National Independent Automobile Dealers Association starts today with a new name and the organization’s most ambitious goals ever.
A record number of independent dealers from across the nation are converging on the nation’s capital for the National Policy Conference and Day on Capitol Hill — formerly known as the National Leadership Conference — NIADA’s annual opportunity to meet face-to-face with legislators and regulators.
The event, which runs through Wednesday, was renamed this year to reflect its overriding mission — making the voice of the independent dealer and small business heard and represented in shaping the policies of the federal government.
As in the past, the highlight is Wednesday's Day on Capitol Hill, when more than 180 dealers and industry partners representing the national association and its various state affiliates will participate in more than 100 meetings with members of Congress or their staff, advocating for the industry in support of tax reform, reforming the Consumer Financial Protection Bureau and repealing the CFPB’s arbitration rule, and against a blanket ban on sales of recalled vehicles by independent dealers.
Both of those numbers will be the most ever for NIADA's Washington conference.
In addition, NIADA will present its inaugural Legislator of the Year award at a reception Tuesday night at the Dupont Circle Hotel in Washington D.C. Legislators expected to attend include Rep. Jodey Arrington (R-Texas), Rep. Robert Pittenger (R-N.C.), Rep. Scott Tipton (R-Colo.) and Rep. Roger Williams (R-Texas). Afterward, the PAC Cup will be awarded to the NIADA region that contributed the most to the NIADA Political Action Committee over the past year.
Sen. Richard Shelby (R-Ala.) will be the featured speaker for Wednesday’s Power Lunch during the Day on the Hill.
The conference also includes a series of regulatory briefings Tuesday, including updates from the CFPB, the Federal Trade Commission, the Small Business Administration and, for the first time, the White House.
D.J. Gribbin of the National Economic Council and deputy chief of staff Rick Dearborn are the scheduled speakers from the White House.
“NIADA is engaged in the legislative and regulatory process at the federal level year round,” NIADA chief executive officer Steve Jordan said. “That’s one of the association’s highest priorities. The National Policy Conference is the centerpiece of our efforts to serve as advocates for our members and the used vehicle industry.
“Four years ago, we felt it was important to come back to Washington D.C. and let independent dealers talk to legislators firsthand about who we are, what we do and what we represent. It’s very exciting to see this event grow, but we've only scratched the surface of its potential,” Jordan went on to say.
FrogData is the latest company to announce Friday that it has become an approved CDK Partner, and is now part of a marketplace made up of 300 partner companies that offer more than 400 different applications for auto dealers.
FrogData can now seamlessly access dealer data for use in its Dealer Data Analytics Platform, which allows the company to provide dealership transaction data faster, according to the company.
“We are pleased to obtain this approval from CDK and are looking forward to providing our customers daily dashboards and analytics using our powerful big data platform,” FrogData chief executive officer Tej Soni said in a news release. “Our platform capabilities, combined with seamless data integration with CDK, will give us the ability to respond rapidly to our customer’s needs.”
In addition to providing dealerships enhanced reporting capabilities, FrogData’s Dealer Data Analytics Platform is designed to help dealers use the data they receive, the company said
Following vehicle purchase, the data analytics solution allows dealerships to monitor incoming leads, sales, F&I and track service transactions.
“We’re very pleased to introduce FrogData as the newest member of the CDK Global Partner Program,” added Howard Gardner, vice president and general manager of CDK Data Services. “FrogData’s data analytics solution adds to a growing range of partner offerings.”
Florida. The Mid-Atlantic. New England. Illinois, Texas, Colorado and Arizona. California.
Not only do these areas contain some of the largest cities in the country, but they are also areas where the commercial consignors utilizing CarLotz have heavy volumes of vehicles for the company to remarket at retail.
So with a $30 million round of equity capital funding now in its coffers, the CarLotz chain of used-car consignment stores will push northward, southward, eastward and westward to add at least five locations a year and expand into these areas, says chief executive Michael Bor.
CarLotz, which began in Richmond, Va. in 2011, has spread its wings outside of Virginia in the past year, expanding its store count to five and moving into North Carolina, as well.
Bor said the company has been pleased with the process of getting those stores rolling, and its commercial accounts are pleased with the retail remarketing services of CarLotz.
“Based on feedback from our commercial accounts and extensive discussions with them on where their vehicles are located and where they’re having difficulty remarketing, or getting appropriate pricing on their vehicles, it became very apparent that we should have these locations in key markets all around the country so that we can serve our national accounts at a national level,” Bor said in a phone interview Tuesday.
The investment comes from TRP Capital Partners, and it’s the first round of investment in which all the capital has come from one private equity source. Prior funding, Bor said, has come from individuals and small groups pooling together.
Interestingly enough, TRP is the rare blue-chip, major private equity fund that focuses entirely on transportation, Bor said.
“There aren’t many of those that exist,” Bor said. “We got to know them just over time, because they are in our space. And we just kept in touch and they were very interested to see how scalable our commercial activities can be and how big a company we can be, if we have locations around the country.
“Both their capital and their industry contacts and expertise are going to be tremendously helpful as we continue our national expansion and growth strategy.”
Asked about the process of choosing exactly where CarLotz will be setting up shop in these new markets, Bor said: “We’re looking at markets that are kind of top auction markets. And those tend to be the largest cities in the country.
“But the fact that we remarket at retail means that we have to be a very visible retailer on the automotive retail strip. We like to locate on major auto miles in the cities in which we set up shop,” he said. “And we feel that the better location we have, the faster the vehicles will sell, the better pricing we’ll be able to get for our commercial accounts. So we’re really looking for those marquee properties on the automotive row.”
And while it may sit nestled between the wholesale market traditionally led by auctions and the retail market traditionally led by dealers, CarLotz doesn’t aim to be a thorn in either’s side.
It’s very much about working with the existing players. The model is less about disruption and more about supply chain management.
CarLotz is aiming to “build a system” where this very small slice of used-car market that’s retail-ready at wholesale can go direct to retail, Bor explained in another interview, earlier this year.
Asked how dealers and auctions have taken to the growth over the past year, Bor said Tuesday: “We now work for dealers, and so what I think is great about the dealership space is that there’s just healthy amounts of competition, meaning that we all ultimately compete for buyers to show up and buy vehicles, but we’re also very aware that there are millions and millions of transactions every year.
“And any way we can help each other out, basically benefits everyone,” he said. “We help other dealers by selling their trade-ins or vehicles that have aged on their lot.
“And then on the auction side, I think they’re generally aware of us and interested to see how we grow with several of our key accounts which happened to be shared amongst us and the auctions.”
CarLotz is aiming to launch at least five stores per year in the near-term. Within 24 months, the goal is for its store count to reach 15 (including the five existing stores), “and we’ll really be located such that the shipping costs to get to our locations will be minimal, which will further help our accounts increase their retail remarketing lift,” Bor said.
While NADA Show 2018 takes place during the height of college basketball’s March Madness championship run, one of its five keynote speakers has a few rings of his own from the college football world.
On Thursday, the National Automobile Dealers Association announced the keynote speakers for its annual convention, and Alabama football coach Nick Saban is among the quintet.
And appropriately enough, Saban has been involved in dealership ownership, so he will know his audience well.
Keynoting NADA Show 2018, which takes places March 22 through March 25 in Las Vegas, are:
- 2017 NADA chairman Mark Scarpelli (March 23)
- Saban (March 23)
- 2017 NADA vice chairman Wes Lutz (March 24)
- Waymo chief executive officer John Krafcik (March 24)
- Robert O'Neill, team leader at Naval Special Warfare Development Group (March 25)
“In addition to the keynote speakers, the NADA Show offers one of the best educational training and networking opportunities in the industry for both dealers and their managers — from participating in the workshop sessions covering all dealership departments, attending the dealer-franchise meetings to shopping for the latest products and services from hundreds of exhibitors," said Richard Stephens, NADA Show committee chairman, in a news release.
“Attendees will be among the first in the industry to find out what's new in the retail-auto industry and stay ahead of the competition,” he said.
Dealers and dealership managers can begin registering online Oct. 2. That includes an early-bird discount (which ends Nov. 17) an hotel selection.
For more information, visit www.nadashow.org.
