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 Elise Kephart on December 24, 2011 at 12:49am
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David, the proper phrase would have been no vehicle should be sold below invoice. I meant no other implication against any other manufacturers.
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Comment by David T. Gould on December 23, 2011 at 5:43pm
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Elise, Your efforts are very commendable. You obviously have invested a lot of time and effort making your sales experience better than the pack.
Tongue in Cheek: I humbly stand down to your ability to get auto buyers to travel 300 miles past multiple (even non-TrueCar) same franchise dealers to pay you more. It sounds like you could have the solution for TrueCar's salesperson reduction (elimination) plan. Grant saying "its there already and change is happening" is reason alone to accept their illegal practices (in my, and now multiple states, opinion). Your statement... "Selling a Honda below invoice or advertising for below invoice is ridiculous" implies what about the other manufacturers?
Not looking for a fight, just some mind expansion.
Good (Great) Selling,
DTG
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Comment by Tom Drommond on December 23, 2011 at 5:10pm
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Mike - you are right. All of these strategies would have to be in place and applied to every customer, not just TrueCar. In that regard, TrueCar is changing the way dealers sell cars. They've adding cost to every car deal to make up for the few TrueCar customers they sell. That $299 has to come from somewhere. What TrueCar has done is get a lot of pretty clever people thinking of ways to beat their system or stop them in their tracks. I can't believe that's what Scott Painter intended. @Eric - you may have hit the nail on the head. Painter may be just doing a "pump and dump" with TrueCar. Beware an IPO.
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Comment by Randy Holt on December 23, 2011 at 5:06pm
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TrueCar's legal issues will be worked out one way or another. As for the other stuff...
Elise, much of what you say is absolutely right - however in many (most?) markets there is nobody putting out any effort at all to differentiate themselves from the competition like you have. Your results confirm that. But as our industry changes, and it will, your advantage will fade.
As the surviving dealers learn how to provide customers with a similarly pleasant shopping experience - price, location and selection will likely become the only major ways to differentiate oneself. The downward race to the functional bottom may take a very long time to fully manifest - but is real. No amount of excellent customer service will be able to stop this. Mr. Painter knows this. The profit / cost structure of retailing cars will be altered and unable to support the level of income that I (and you?) enjoy today.
Nothing wrong with working at Kmart, WalMart or KarzMart - I just can't afford the pay cut.
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Comment by Mike Warwick on December 23, 2011 at 4:26pm
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Tom, while I agree with your overall premise, all of the things you mentioned are illegal under Truecars's guidelines. Change your processing fees for Truecar customers? Get ready to write a six figure check to your state's Attorney General's office. Truecar is prepping these customers for all of the tactics you mention. Dealers who decide to honor Truecar pricing and try the tactics you mention are begging for an avalanche of negative reviews.
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Comment by Ryan Easter on December 23, 2011 at 4:04pm
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Great. Well written. I see both sides of the debate. At the end of the day if you do not creat value, you will not survive. Thanks for doing your part in a professional manner.
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All this racket and it still boils down to salesmanship. I really liked the idea of including mystery shopping emails in evidence manuals. Those are the types of stratagies that need to be discussed by troops in the field. If a GM or owner signs up for TrueCar, you can quit, get fired or you can find ways to win in spite of all you've heard about TrueCar. As salespeople, we don't get much say in the marketing stratagy of our store. What we have to do sometimes is make lemonade out of advertising lemons. Loss-leaders, ad-cars, manager's specials, liner ads, they all put the salesman on defense. TrueCar is no different. If you know what side of the ball you are on, you can play correctly. If you're on "D", defend the value of what you sell. Defend the value of your expertise, but don't just point fingers and whine because the game is hard to win. Both offence and defense need to have a playbook. You need to have a process and a plan for what to do when pressed to honor those offers. If it's holding on the trade-in, adding accessories, raising processing fees, whatever. It has to be communicated to salespeople by their managers. Check your business card. If it says salesperson, sell. If it says manager, manage. If it says owner, do whtever you'd like, but make sure my paycheck clears on Friday or you will see me again.
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Comment by Stanley Esposito on December 23, 2011 at 3:47pm
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@Michael Timmons,
Bread at walmart is the same as bread at Publix. It is cheaper at Walmart but at Publix they offer better service and bring your stuff to the car. An 1200 square foot apartment in NYC goes for more then the same size apartment in Kansas City. There is supply and demand with cars. A convertible will probably cost more in Miami then the one on a lot in December in Philadelphia. truecar loves to try to break a car down to a commodity. People will pay for great service but with your system we have to outbid the other dealer before they even get to see our service and my skills as a salesman. Your site pits the customer against us. Really what business is it for anyone to know cost? Last time I looked truecar has no inventory. I did my research too.Scott Painter comes off arrogant and says he sees a day without salesman. He thinks he is saving all the helpless customers from us horrible high pressure salesman. He bragged to everyone who would listen and now it is coming back to bite him in the butt.
I sell the younger generation of buyer and most of the ones I come across know that the dealer pays a fee and will take the truecar pricing to a non truecar dealer to match. Truecar may be first but it is far from being polished someone will be along soon with an improvement on truecar's premise. In my opinion the dealers can set a price without truecar and true car will soon be a memory.
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Comment by William Finsilver on December 23, 2011 at 3:20pm
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A salesperson with true passion will win out more than 50% of the time and Elise, any time you want to move to Metro NY and work at a BMW dealer, just let me know. But the real issue here with True Car is feeding data to a company whose business model is to make our product a commodity and have every dealership turn in to a automotive Best Buy. I dont think anyone of us would think that is a good idea. And a worse idea is to produce and supply the bullets for the gun that True Car has pointed at our collective head, and help them pull the trigger.
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Comment by Michael Deville on December 22, 2011 at 8:35pm
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Truecar is not a price problem it is a intent problem. It is not did I overcome a price or objection , it is the mind set of the owners. Wake up, the picture is bigger than price, the picture is control and demise. Don't worry about one deal worry about your automotive rights, freedom and future income. Worry about one or two great sales closes and lose the house!
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