TrueCar Thoughts from Elise Kephart
Another night of being up late...thinking about work, personal life, work...and of course this whole TrueCar debate. I'm not sure if this it's a good or bad thing that for the past two hours I have been catching up on all of the blogs, videos, phone conversations recorded etc.
Now, before I state my thoughts on this. I realize that there are a few close friends and mentors in the automotive online network here that may have a different opinion. I am the type of person however, that is open minded and have read for hours upon hours and done alot of research on everyones opinions on this the past few weeks. It seems the majority, including as mentioned close affiliates of mine, that are ready to KILL THE BEAST. It does amaze me how it started off as Jim's facebook status and now it is becoming a revolution it seems.
Here is my own PERSONAL EXPERIENCE on it. I realize several of you are GM's, owners of dealerships, trainers etc. I work on the line so to speak. I get to deal with internet customers all day, everyday.
When I first moved into the internet department, it took a little bit of learning to get away from learning a specific system. The cliche is that internet customers are all about price.
When I first got into this business and was on the line at a Ford Dealership in San Diego, I had no sales experience. I was a coffee barista before that but was motivated enough to learn the business and find what works, and what doesnt work. My first day I walked other dealerships lots as a customer and discovered quickly the stereotyped "car sales person."
When I first moved into the internet department...I was trained to make a phone call, write an email and set an appointment. This would be great if it actually worked the first time around...so what did I do? I wanted to learn. I made fake emails, and I "walked to dealerships lots" but online. I mystery shopped. Doing this I discovered what I did not like.
In doing this, I quickly discovered that most ISM's are sending out auto responders. When you spend a day mystery shopping, you discover that there is so much automation in our business that eventually it all looks THE SAME. I also found dealerships sending out quotes first time around on a car that again, would be automated. I shopped for a "Honda Civic" DX (this is the entry level with no air or radio!). Dealerships were sending me your typical automated response asking for an appointment or "when I could come in to get a really good deal", or sending me a price quote without even asking or verifying "are you looking for a DX Civic or do you like to have air conditiioning and a radio?"
Then my theory went back to my roots BE DIFFERENT! DO SOMETHING that you will be REMEMBERED FOR. STAND OUT. When I was on the front line (reflecting back to San Diego, prior to being in internet) I got all that time waiting out on the pad with the sun beaming on my face, with my uncomfortable heels, waiting for that one up. (we were on a rotation). During this time when you are waiting and waiting for the up-you go through an un explainable mental self motivating game. If you are in this business you motivate yourself enough so that when you do get that up you are ON YOUR GAME.
With the internet it is no different. I started a process: EXCEEDING (and truly exceeding) what I knew customers were not getting anywhere else. I make a phone call, send them a personal video message, write them a handwritten postcard and in doing this the customers DID CALL back, or they DID WRITE back. Why? I can't tell you how many times "Elise we really loved your video and postcard."
Now..back to the topic of truecar. This is where as a person who does like to do the creative side of things in this business like the videos and postcards...the truecar prices started to come up. There were those customers who when were not a truecar dealership-customers had a USAA price that they wanted us to match so I would offer a time for them to visit with me where they could bring in their certificate. Once the customer got there I was able to see all the dealerships who had these close to invoice or even back of invoice prices.
These customers even though we were not a truecar certified dealer at the time, would still try and give us "the shot" to match the "best price."
But at this point, the customer usually has a rapport with me via the videos and postcards Ive sent. I would sit down with their bell shart and three prices, and BEST price and do the SALES PROCESS with them.
We have all heard of an evidence manual. I have one with a biography on me, awards on the product (Honda), handwritten customer testimonials, photos of my customers and toward the back of this evidence manual I have evidence.
BUMP STICKERS. YES, a truecar dealer could have a price $700 back of invoice but this is an actual markup sticker I xeroxed when we have traded with that dealer. This dealer accessorizes their vehicles with over $1,995 of accessories. Right by that mark up sticker I have copied yelp, dealerrater, google reviews with ACTUAL customers stating that the accessories were "non negotiable."
I have several bump stickers copied, several yelp reviews and true actual facts. Now, I did speak with a truecar rep who stated that dealerships on the program are not supposed to have accessories forced upon the customer...but I know that it happens.
What else do I have in my evidence manual? Actual emails from dealerships when I mystery shop telling lies-wether it be what is available, or not giving an out the door price, or lying about having the vehicle in stock etc.
As a sales person-BRING VALUE to the table. Show them why if they really drive 169 miles out the price on the best truecar price is a loser deal and SHOW them the games and tricks that several dealerships will play.
It got to the point where we did sign up about two months ago with Truecar. It has been profitable with us.
To state some facts with my own personal experience on it: we are usually the third or second most expensive price on true car. We are never the BEST PRICE.
What is funny about this is WHY, if it is ALL about price have I been getting customers that will drive 300 miles and pass the other two better priced TRUE CAR dealers to come and buy from me? My PRICE is higher. I sometimes even have to get the vehicle on a trade-so its not about inventory or having it in stock.
My real theory-is that I put value to the table. Now, yes-often times, it takes the extra mile. All the sales people at my store says sometimes I go to great lengths to just make a mini or close to a mini. For me-I get a kick out of it. MY TIME IS VALUABLE. If I make a video message, write an email, even make a call-that a moment of MY time that is being taken. If I give up because its "another truecar" customer...then Ive wasted even second with this customer.
As far as truecar pulling DMS files: I have heard Scott Painter state several statements, more recently in a phone conversation that I was listening to where he says he does not use the DMS to create that pricing.
He also says that he is not a broker, because dealers create their own pricing.
"Elise how can you sleep with the devil? "-I could be wrong, as I am not perfect-but I have been a dealership not on it, and as Grant said its there already and change is happening. Wether I use it or not, its still there. Now I realize that Honda is telling dealerships to not advertise below invoice on truecar-and I completely agree with that. Selling a Honda below invoice or advertising for below invoice is ridiculous.
I think the truecar/clearbook needs some tweeks to be done still...but it has been profitable for us, and has been a great lead source-even though as mentioned my truecar price is NEVER the lowest, or race to the bottom and as mentioned in the past two months since we have been on it-i have gotten customers drive past the other two truecar dealerships to pay MORE for the SAME car but buy it from me.
CREATE AN EXPERIENCE that has no pricetag. I don't see truecar going away, and if it does-there will always be another company right behind it.
Its late....and I know this has been such a big debate online and wanted to put in my 2 cents.
-Elise
Feel free to leave comments.
Comment
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Comment by David T. Gould on December 30, 2011 at 11:13am
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@ Tom, I understand if you don't want to address my request for process clarification. You definitely have something unique there. In your case, as the "big guy" your most likely to benefit from Mr Painter's "vision" for the auto industry. I personally still have not gotten over the past government blood letting of GM and Chrysler dealers that you most likely are benefiting from. My "vision" of the automotive family (personable) dealership (american dream) fades as outsiders, like TrueCar, and insiders, like yourself, push for a "Big Box" solution to this business. Good news for me (and dealers not sharing your TrueCar success) is that toasters don't have flood or frame damage! All Best (Sincerely) and Good Selling, dtg
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Comment by Brian Willian on December 30, 2011 at 11:05am
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Tom, I love your spirit and enthusiasm. You are obviously very good at what you do. In a nutshell, that's why you don't need TrueCar. You are the number one store. TrueCar people are in market, so the odds are overwhelming they would have shopped you anyway as the number one store with a 34-year history. TrueCar is just adding another layer of expense. Additionally, I agree that selling on price is for less-skilled, less-informed sales people. That being said, price is all TrueCar sells. Again, if you are good at building and selling value and providing great service you don't need TrueCar which is a pure price-driven product. The bottom line is you are paying for a service you don't need as the number one store with a solid 34-year track record. I assume you were number 1 before TrueCar, right? That's because of your company culture and professionalism not some weak, loss leader, low ball website.
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@ Charles, again with the digital emotional breakdown? I understand if you (TrueCar as well) feel like you are being picked on, but sticks and stones will break bones... is not going to get around the facts. The probable fact that others are misusing consumer information does not justify TrueCar doing it. Understand Charles, I have never seen or heard any of the other data providers, you are referring to, insulting and degrading the very auto industry that pays their bills the way your "leader" Mr. Painter has. Those who are (were) using any consumer's information without their permission and benefiting from it in the past can THANK MR PAINTER for bringing that techno gravy train to a halt. You are correct. ALL VENDORS (Not Dealers) NEED TO BE PUNISHED IF THEY ARE ABUSING DMS INFORMATION NOT JUST TRUECAR. Your boss is the one who managed to wake up the "technology ignorant" (my term sorry for harshness) by his arrogance and ignorance of this industry. Your ability to magically change an entire dealership's profitability by turning it to a Best Buy sales model (my interpretation) does not reflect reality.
Let potential and existing investors in TrueCar and the like not forget Mr Wayne_Huizenga. He thought he had that all figured out. That sales model failed with huge losses for investors.
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Comment by Keith Shetterly on December 30, 2011 at 10:56am -
@ Tom: Thanks for the clarification. You could be right-headed on this, but I don't think you are. Good selling!
Keith
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Comment by Tom Drommond on December 30, 2011 at 10:49am
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@ Keith - I've stepped up all week and gave my unvarnished opinion. I beleive in selling cars, taking care of customers and having fun doing it. If TrueCar gets in the way of that, I'll kick them to the curb. Otherwise, their goals are in line with mine. They have added incremental sales, gross profit, customer base, improved CSI and market share to our dealership. They have introduced us to customers we wouldn't have met. They have reduced advertising cost by letting me eliminate things like letter sales and buying 3rd party leads that have been shot-gunned around the region. We are so expense-focused that I know for a fact that the ROI is there. We've looked long and hard at TrueCar's program for over a year and we like it. I can't wait for their advertising to kick in. If they want to get into the trade value business, go for it. It's not like there aren't 20-30 sites others telling customers what to expect for their trades. We deal with it every day. I've watched Scott Painter give several interviews. His points are well taken. I've been saying the traditional salesman was a dinosaur since 1996. Standing out front, waiting on ups and living/dying by the fresh up is for 8-10 car salesman. The salemen that can't negotiate the internet and deal with a variety of customer source are doomed. If Scott Painter is pointing it out, he's in good company. I applaud his audacity to rub our noses in the fact that all we know how to sell is price. Price is not the reason people buy a car. If we had been focused on our customers and teaching them why they should buy our products, we wouldn't be in this predicament. We've brought this on ourselves in that we've bought into the "price sells cars" idea and focus on profit over people. Profit is a function of value. Provide no value beyond a low price and that's how you will be judged. Do it long enough and you can't get that culture out of your store. If reducung the number of dealers brings us back to focusing on customers, I'm all for it. My store won't be one of those eliminated. We are the #1 Buick GMC store in OK with a 34 year book of business. I'm not worried one iota about Scott Painter running us out of business. He couldn't even if he were trying I think that covers all your points and clarifiies my position on TrueCar. Yadda Yadda
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@ Tom Drommond lost you in the last couple pages of posts. I am trying to wrap my head around your pay plan / process to see how it could apply up here. (northeast, far from you) Could you give be a bit more specific on the roles or your salespeople / managers in the sales process? Is there a back end (finance) or accessory solution involved? I am very serious about your solution being helpful if it works in a TrueCar like environment. NOTE: I am not accepting any part of TrueCar's business plan as acceptable but recognize there are benefits in true transparency.
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Comment by Keith Shetterly on December 30, 2011 at 10:14am
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@ Tom: No, I just politely asked for clarification because of your statements. I wondered if you would step up for what you believe in or try that cheap route 'prove my point' yadda yadda. I'm not sure anything got proved except that hard questions get avoided.
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@Keith - thanks for proving my point.
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Comment by Keith Shetterly on December 30, 2011 at 10:09am
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@ Charles: Thanks for continuing to participate!
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Comment by Keith Shetterly on December 30, 2011 at 10:08am
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@ Tom: Does it bother you that TrueCar wants to control the trade price, too? That they'll have financing and aftermarket products within six months? It's not the three deals you just got, but congratulations on that. Sales are always good! I don't understand why Painter's real statements (many on video) don't bother you about less dealers, no salespeople, etc. Why would you work with a vendor who talks like that? Do you not believe that is the TrueCar goal, even if Painter is on tape saying it? Or it doesn't bother you? If not, why? I'd like to know what a person who is successfully selling a few of these leads thinks before the national TrueCar advertising REALLY kicks in. Thanks!
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