EV’s Here, EV’s There, EV’s Everywhere

EV’s here, EV’s there, seemingly EV’s are everywhere… except on the actual roads, for now.

Based upon the headlines, commercials, recent IPO’s, and tweets from a certain celebrity CEO, you would think EV’s are as common on the road as an IC (internal combustion) powered F-150. To anyone outside of the industry, it comes as a big surprise to hear that EV’s only make up about 3% of the market share. A number that is expected to grow exponentially over the coming years, but we are not quite there yet.

If you were part of the 112.3 million viewers of ‘the big game’ in February, then you were a part of the population that was inundated with EV commercial after EV commercial. Certainly, a sign of where the market is headed. The question then becomes, how quickly do we get there?

Most people think Elon Musk kicked off the electrification craze when the Tesla unveiled a dynamic, all-electric roadster in in 2006 (officially released as a 2008 model). Actually, the first electric vehicles were produced well over 100-years before the Tesla Roadster turned motoring enthusiasts onto electrification. Here in the United States the first electric vehicle is credited to William Morrison, a chemist who lived in Des Moines, IA. In 1890 he created a six-passenger electric vehicle that was capable of a top speed of 14 miles per hour.

Over the next decade the industry saw several manufactures produce their versions of electric vehicles, reaching a pinnacle around 1900 when New York City had a fleet of 60 electric taxis and charging stations every few blocks to meet the rising demand.

As electric vehicle sales were climbing due to the easy, clean, and quiet operation, a true disruptor burst onto the scene, Henry Ford, and the Model T! The Model T car cost only $650 ($18,500 in today’s dollars) while the electric roadster of the day cost $1,750 ($50,000 in today’s dollars). The explosion (pun intended) caused by the internal combustion engine, the popularity of the Model T, and the access to cheap gasoline, led to a sudden and swift decline in electric vehicles.

Throughout the decades, there were a variety of inventors, tinkerers, and manufactures who dabbled in electric vehicles, but the demand for expensive, limited range and often odd-looking vehicles just didn’t justify production at any level of scale.

Although Elon Musk and Tesla get most of the headlines for the current hysteria around EV’s, credit should also be paid to Toyota who paved the way with the daring release of the Prius. In 2000, Toyota released to much fanfare and success, the hybrid-electric Toyota Prius. Although, Honda released the Insight first, it did not receive near the acclaim the Prius did.

Fast forward to today, when almost every CEO is racing to update their talking points to claim they will be first to convert their fleet to fully electric. The bold declarations have ranged from 10-years to 3-years, all of which are purely speculative talking points at this time.

There are many unanswered questions about the reality of a fully electrified fleet roaming the highways and byways of this great nation and the rest of the world. A few certainties we can count on, the cost for an EV will continue to come down as more manufactures fight for market share and ranges will continue to be extended as technology improves and battery costs lower.

One big unknown is the capacity of the power grid and how it can handle a sudden surge (another intended pun). Most Americans have experienced some type of power outage in their lifetime, and many experience power-outages annually during storm season. What happens to your EV when you cannot access power due to inclement weather? Another unknown is how to handle a vehicle running out of charge on a remote section of turnpike. There are many bells and whistles to alert the driver they need a charge. Ironically, my gas light goes off like its DEFCON 1 if I don’t pull over immediately. In spite of that, I have run out of gas and have been stuck on the side of an interstate. Who hasn’t played a game of mileage chicken with their gas light? The good thing is gasoline can easily be delivered in a little red can by most anyone. How many rest stops in middle-America have portable charging packs on hand to loan out or sell?

Lastly, what is the long-term impact all these battery packs are going to have on our environment? Almost every component of an IC vehicle can be salvaged and recycled at a reasonable rate. You can head to most auto-recycling centers and grab a ‘new to you’ engine, etc. Do Pull N Pick Auto Parts Centers sound familiar to anyone? In the future will we be able to wander through row after row of Tesla Model S, Chevrolet Bolts, and Ford Lightings to grab a ‘new to you’ inverter, low voltage DC-DC converter, etc.?

There is no question where we are headed, and after a bit of review, it is back to a place we have already been. A city filled with electric vehicles, charging stations readily accessible to everyone needing a bit of juice, and the sound of, or lack thereof, mid-day traffic. That is of course until, the next trip Back to the Future…

  • Ryan Nelson has more than 25 years of experience in the retail industry and is a partner at Advanced Dealer Solutions, a leading independent agency specializing in dealership development in the auto, RV and powersports industries.

Advanced Dealer Solutions March Newsletter

Spring is often associated with rejuvenation, regrowth, and rebirth. One could argue those three words take on more importance this spring season than most others in recent memory. 

The good news is, all three seem to be in play this year, especially in the retail industry.  

March brings a time change (for most of the country), one of the greatest sporting events ever created (March Madness) and Auto, RV and Powersports shows fill convention centers across the country displaying the latest and greatest each manufacturer has to offer.  

The shows this season are filled with a variety of electric options from many manufacturers. This is not the first foray into electrification for this car-crazed country, in fact, far from it. Take moment to read the article below about the history of the electric automobile and how we got to where we are today.  

Speaking of EV’s, please also take a moment to learn more about a VSC option from a great partner of ours, Axiom Administration, for the growing market of electric vehicles.  

Lastly, make sure to visit the Toy Box below for an added history lesson about the electric vehicle and its ties to Cleveland, Ohio! 

We hope all of you are ready to ‘spring’ into action as we head into the main selling season.

To read the full newsletter follow https://mailchi.mp/advdealer.com/newsletter-march

February Newsletter

2022 is off to an interesting start to say the least. The combination of the Omicron variant wreaking havoc on dealership staff, mixed messages about how best to combat the spread of the virus, uncertainty about supply chain and changes in the Fed policy have added to the already nebulous outlook for 2022.
 
What hasn’t changed is consumer demand continuing to outweigh the abilities of the global supply chain, which is putting dealers in an odd, but enviable position. Many dealers thrive on volume, and although margins are strong, they long for the days of lots filled with ready to deliver inventory. It appears the industry consensus is showing a backlog of demand in the range of 2 to 2.5 million new vehicles. If those predictions prove out, then we can get comfortable with the current market conditions and continue to maximize the opportunities in front of us.
 
One potential downside to this market is the dealership fixed operations. Increases in parts and labor cost, further depletion of the technician labor force and lower sales volume create the potential for several missed opportunities causing a negative effect on a dealer’s fixed operations.

To read the full newsletter follow https://mailchi.mp/advdealer.com/newsletter-february.

January Newsletter

Welcome to 2022! We have officially flipped the calendar on another year. Looking back to a year ago, the consensus was that we would be past COVID, supply chain issues, etc. Conversely, it feels quite the opposite. All the issues and concerns of the past two years are still with us and it appears they will be for some time. Despite the obstacles, many of you took the last month to put the finishing touches on a remarkable year and made plans to ride the momentum well into the new year. 

Our team is excited for the year ahead and have laid out some ambitious plans for what we want to accomplish. We will not simply speak of ‘hoping’ to execute on our strategies, we will focus on constant and measurable improvement so we can continue to exceed our dealer’s goals and expectations. We look forward to holding each other accountable to complete another goal shattering year.

Let’s all make 2022 Our Best Year Ever!

Happy New Year!

To read the full newsletter and subscribe follow the link below.

https://mailchi.mp/advdealer.com/newsletter-january

The Power of an Addendum

The current supply issues are creating a unique ‘sellers’ environment for dealers of all types these days and it is unlike any market I have experienced in my 27 years in the retail industry. Whether you are currently selling cars, RVs, or powersports you are seeing customer demand potentially higher than you’ve ever seen and are rightfully enjoying the fruits of scarcity. We all know this is a cycle, and at some point, we will again see rebates, negotiating, and discounts. The fruits dealers are currently harvesting are well deserved after surviving nearly a decade of margin erosion and a continuous sprint to the bottom of the price chain.

I recently attended a couple of industry events and heard story after story about customers agreeing to purchase, and pay top dollar, for their third or even fourth choice of vehicle. On the surface, this seems like an ideal, highly successful model for dealers to live in. While it has been bountiful, I feel there are some adverse effects as well as some missed opportunities worthy of addressing.

There is an old adage, ‘when perceived value exceeds price, you have a sale.’ Right now, the perceived value is the raw availability to conduct a transaction instead of the traditional checklist of wants and needs. Simply having something to sell is all the value a customer needs to see in a retailer. The dealers I know and work with, want more; they want a customer to see value in the transaction, not just being able to conduct a transaction. Of course, dealers want to maximize on the current opportunity, but they also want to perform the balancing act of earning the well-deserved profit, as well as providing long-term value in doing business with their dealership but for years to come.

Assuming dealers are exceeding their customers experience expectations, then we’ll move on to the value of the vehicle. By value, I am not referring to the features and benefits the customer has spent hours online pouring over, but the additional value a dealer can provide by protecting some of the customers risk exposure. Customers often get caught up in the euphoria of the purchase and forget the reality of owning a car, RV or powersport toy. They forget cars get dirty. They forget RV’s get lived in and spills and accidents occur. They forget their side by side could catch the eye of a thief. The risks of these forgotten realities can be mitigated by dealers including protection products on an addendum.

An addendum allows a dealer to enhance the value of a transaction by pre-selecting one or more value-based consumer products and adding them to a ‘Why Buy Here’ of the dealership. These addendums create a unique presentation opportunity for the sales consultant and most likely leads the customer away from a decision based solely on availability, or worse price. Instead of talking about discounts to meet a competitor’s price, the sales consultant can direct the conversation to the benefit of having a vehicle location device with years of monitoring included, as well as the cash benefit to assist in the event of an unrecovered stolen vehicle. Customers will value peace-of-mind over price if they are educated on the benefits before being ‘sold’ the item or being asked to pay a higher price with no explanation of benefits.

There are a few addendums I have seen backfire on dealers. Pinstripes, although spectacular to some, generally don’t command a $1,495 increase to the cost of the vehicle. And believe it or not, there are some that don’t see $999 of value in a set of plastic mudflaps for their Honda Accord. Whereas customers do see value in knowing their vehicle is protected from everyday spills and stains, as well as having some coverage against the environmental effects to today’s modern painted exteriors. Who out there doesn’t relate to a soda, or ketchup packet spilling on their seats or floorboards at some point in their driving history?

The great part about an addendum is it helps clarify the customers value in the vehicle as well as reminding them of the unavoidable perils of owning a vehicle in today’s world. If the customer doesn’t see value, then the addendum can be removed, and you have a sold vehicle at or near MSRP. If the sales consultant properly conveys the value of each item on the addendum, then it is likely the customer will at least purchase one, if not everything the dealer includes on the addendum. Either way, the dealer and customer are in winning situations; value exceeds cost!

A few suggestions:

  • Make the addendum something of true value to your customers. Leave out frivolous outdated items nobody sees value in. Today’s buyer is too sophisticated and will see through the gimmicks of what is being attempted.
  • The success of an addendum is directly correlated in the confidence of the presentation by the sales consultant. If the dealership staff doesn’t believe in what is being offered, it will fail and most likely backfire on the dealer.
  • Disclose anything and everything. Don’t sneak anything in. Proudly display the addendum and additional cost on the vehicle. Give your team the tools to demonstrate the value of each product being offered. Value based protection products sell themselves when explained properly.
  • Live it. Like most rewarding actions in life, you cannot be passive. You must be active with your value-added items each and every day. Here are a couple ways to keep everyone focused on the value on in the addendum:
    • Walk around competitions for some additional Saturday spiff money.
    • Product knowledge quizzes focused on what makes this product so valuable.
  • Retain the customer. The addendum should have some form of tie back to the selling dealer. Don’t just sell a vehicle, win a lifelong customer. The real gains come from the harnessed lifetime value of a family in the dealership’s community. Believe it or not, people still like doing business with people they know and trust.

About the author: Ryan Nelson has over 25 years of experience in the retail industry and is a Partner at Advanced Dealer Solutions, a leading independent agency specializing in dealership development in the auto, RV and powersports industry.

To learn more about how the right addendum can benefit your dealership, please reach out to Advanced Dealer Solutions at 844-320-3722 or [email protected]

November Newsletter

1/6th, that is all we have left of this wild year. Are you prepared to go into the final 6th more determined than you started? Can you and your team accelerate past the competition as mental and physical fatigue begin to set in? Can you put the finishing touches on the masterpiece of work you have been working on your whole career?

https://mailchi.mp/advdealer.com/newsletter-november-ads

Advanced Dealer Solutions November Newsletter

Later this month most Americans will take time to give thanks. For the ADS team, we are thankful each and everyday for the level of confidence and trust our dealer partners grant us, and for the best in class vendors we are fortunate enough to do business with. 

In this edition, you will find a summary of our new product offering Brake Plus, the newest employee Eddie Rains, and what’s new on APP.

We welcome any feedback and will seek to continually improve with each issue. It is through this ongoing experiment that we look to gain more knowledge, insight, and ideas that we will pass along to our current and future dealers.

To read the full newsletter and subscribe follow the link below.

https://mailchi.mp/advdealer.com/newsletter-november-ads

Advanced Dealer Solutions Welcomes Eddie Rains

For Immediate Release

ADVANCED DEALER SOLUTIONS WELCOMES EDDIE RAINS IN TRAINING & DEVELOPMENT

Richfield, Ohio – Advanced Dealer Solutions is proud to welcome Eddie Rains in Training & Development.

Eddie has been in the automotive space for 30 years working his way up through the dealership space. He has spent most of his career traveling the country delivering sales and F&I training for dealers that has helped grow sales and F&I results. With his extensive background in developing people, Eddie will be a great resource for ADS and their dealer clients.

“Eddie’s personal values align effortlessly with our company values, and I know his vast experience will have a positive impact for our dealers. “– says Bob Mancuso – President of Advanced Dealer Solutions.

“Given the opportunity to join such a great team does not come along very often. I believe this will be a perfect fit for me based on their core values their team lives by and represents.”  – says Eddie Rains – Training & Development at Advanced Dealer Solutions.

“We are excited to welcome Eddie and his many talents to our team. We know the value he brings to a team as well to the many dealers he has worked alongside over the years.” – says Ryan Nelson – EVP of Advanced Dealer Solutions.

Eddie will be based in Abilene, TX and will be focused on growing our training & development platform as well as being a resource for the ADS team and its dealer clients.

Advanced Dealer Solutions is a full-service, dealer development agency focused on automotive, RV, and powersports dealers across the United States. Please contact 844-320-3722 or [email protected] for any inquiries.

Are You Limiting Fixed Ops?

Fixed Ops. The last 18 months in automotive have put this often underappreciated channel under a magnifying glass. Instead of allowing Fixed Ops to run on autopilot quietly generating revenue, you may be one of the many dealers who are now shining a spotlight on your parts and service business.

If you have actively invested more time, strategy and resources in your fixed ops offerings, then kudos to you. If you have yet to shine a light on your dealership’s fixed ops, then I would ask that you consider doing so. This is a critical part of your business that can not only cover operating expenses for your dealership but also add to your bottom line if optimized for success.

In either scenario, there is a chance you are still setting self-imposed limits on just how successful your fixed ops business can be. Read on for 3 ways you may be setting the bar too low.

1. Limiting Yourself

Too often we limit ourselves to what’s most easily available. When it comes to service, we tend to look at the current customers in our database due for a maintenance milestone or customers who have said “yes” to ROs beyond the warranty or recall.

We know from the numbers that there is a wealth of opportunity out there with true customer pay work. It’s available with your recent service customers. It’s available with customers who have bought but never serviced with you. And it’s available with car owners who didn’t even buy their car from your dealership.

There are tools available to help you widen your net and reach real service customers who are actively doing repair work in your direct vicinity. Geotargeting allows you to deliver location-based content and relevant marketing to these service customers. At Client Command® we help our service marketing partners drive more revenue through their service lane with this solution and others.

2. Failing to Invest in Marketing

If you build it, they will come. But, will they really? Anyone who’s purchased a car from a new dealership likely knows there’s a service center. Hopefully, your top-notch sales people walk new buyers over to your service center and introduce them to the service manager or concierge as part of their purchase journey. But what’s being done once they drive off the lot? And what’s being done to attract net new service customers to your bays?

Marketing your service center, pricing and amenities drives two key things: awareness and approachability. Service technicians at dealerships are seen as highly-qualified – often even more qualified than the local service center around the corner. But, there is also a perception that service work at a franchise dealership costs more and takes longer to complete.

Building awareness through marketing and breaking down those consumer perceived barriers makes your service center more approachable, and therefore, a contender the next time a service customer needs to service their vehicle. Investing in marketing also works to build and increase the lifetime value of new and repeat customers further positioning your dealership for long-term success.

3. Increasing a Goal and Not Resourcing Against It

Okay, so now you’re shining a light on your fixed ops offerings through marketing. You’ve put dedicated media dollars behind it to drive awareness among car owners. It’s time to focus on resourcing this side of the business.

Imagine if your service marketing drove 100 more RO’s per month. Could sound like a stretch with your current tech and space capabilities. But that’s only about four additional RO’s per day, which is likely manageable in most service centers. Increasing the number of ROs drives revenue and profits that often result in incremental growth. Earmark a percentage of that growth to re-invest in your service techs and customer experience. A small investment can add hundreds of thousands more per year and make your dealership more attractive to service technicians. Everyone wants to be part of a growing team.

From there you can do a review of your online and physical experience and make sure it is user-friendly and clean. Envision the growth you want to see and begin taking the steps possible to make that a reality, just as you have done on your sales side of the business.

Wrapping It Up

Your fixed ops department is ready to be in the spotlight. Remove your self-imposed limits, set a goal and invest in location-based marketing to relevant prospects and drive more customer-pay ROs for your service center. Your bottom line will appreciate it.

Advanced Dealer Solutions October Newsletter

As we enter the final quarter of this historic year, it is clear many questions remain heading into 2022. Inventory shortages still lead the conversations we are having with dealers. When will inventory levels return? What is going to happen with used car values? Will staffing issues subside? No one has a crystal ball, so we are left guessing to come up with the answers to those questions. The one thing we know for sure is our dealers will continue to thrive. 

Over the next, 3-months dealers across the country will be finalizing their business plans for next year. This year’s incredible performance should raise expectations and we look forward to the challenge of continuing the record-breaking performances we have been a part of this past year. 

This month we feature an organization that is near and dear to our hearts – Breast Cancer Awareness and the National Breast Cancer Foundation, Inc. Please click the link below to find out more ways to help raise awareness. Far too many families are affected by this terrible disease, and we hope to help spread their message. 

We welcome any feedback and will seek to continually improve with each issue. It is through this ongoing experiment that we look to gain more knowledge, insight, and ideas that we will pass along to our current and future dealers.

To read the full newsletter and subscribe follow the link below.

https://mailchi.mp/advdealer.com/newsletter-october