Comment

Comment by Jesse Biter on November 2, 2011 at 9:56am

Brian,

Thank you for being involved with our launch.  As for now, the vendor selection is on hold.  Once our dealer base hits critical mass we will poll the dealers and ask them where we can help.  Once we get those results back, we'll put out RFPs written around the concerns the dealers expressed to us.  At that point vendors can weigh in with solutions on a per issue basis.  I hope that helps explain it, if not, please let me know.

 

Steve, thank you for your kind comments.  We are not releasing dealer counts but I can tell you that we're growing faster than expected.  There is definetly a need for our solution in the market place.  It seems we've found a sore spot with the small groups, single point franchise stores and the independents.  

 

--Jesse Biter

Dealers United

www.DealersUnited.com

Comment by Steve Step on November 1, 2011 at 6:01pm

Hey Jesse,

Powerful idea! Can't imagine any single point or small group not joining. How many dealers do you have on board to date?

 http://2promat.com/email2.html

Comment by Brian Pasch on November 1, 2011 at 4:36pm

Jesse

Thank you for your thorough answers and I love your passion to make the deal work for both parties.  Let me know how the vendor selection process and criteria works because there are a few of our solutions that would work well in this model.

 

Brian

Comment by Jesse Biter on October 31, 2011 at 12:56pm

Thanks Richard!

Comment by Richard Emmons on October 30, 2011 at 11:31pm

Great info Jesse. Outstanding idea!

Comment by Tom Kain on October 28, 2011 at 3:01pm

Brian, Those were all really good questions.

Jesse, Thanks for the detailed answers.  I feel it gives everyone a better understanding of how Dealers United will benefit Dealers and Vendors alike.  What an incredible concept.  Look forward to having you on the roundtable in a few weeks.  It's going to be a blast!

Comment by Jesse Biter on October 28, 2011 at 9:49am

It looks like the last part of my reply was truncated.

 

Regarding Long Term Contracts

Q: Dealers are less inclined to sign contracts over a one year term let alone a 6 month contract for services that they just don't fully understand, like your SEO example. With that in mind, is your organizations commission structure based on larger upfront fees or are they a percentage of monthly revenue?  Can you shed some light on how your organization makes their money.

A: When we started Dealers United, our main goal was to always focus on what is BEST for the dealer.  One thing our dealers can always rely on is that we will only offer products and services that GUARANTEES them the lowest price in the industry.  Having that said,  Dealers United must make money in order to generate such great savings to the dealers.  Thus, instead of charging Dealers a fee to join or stay connected with Dealers United, we have decided to pass that along to the vendors.  It works much like a travel agency - we don't get paid unless we add value.  When we launch our first deal in March and, if you become one of our possible vendors, we will break down how the monthly revenue works.  Until then, all I will say is its very fair and it will be worth any vendor’s time to build a relationship with Dealers United. 

 

Summary: It's important to understand the end goal: WIN WIN WIN.  First and foremost, it has to be a WIN for the dealer.  The dealer has to save time researching products, get the best terms & conditions, get the best price and end up with the best products and services from the best vendors.  If we fail our dealers, we have failed.  Second, it has to be a WIN for the vendor.  The vendor will save significant costs by signing up a large group of dealers in one shot.  The vendors without a national sales force or large marketing budget will WIN the most.  Last, and least, it has to be a WIN for us.  We have to fund our efforts of travelling around the country interviewing vendors, producing educational videos, managing deals and supporting the transactions.  

 

Thanks for all your great questions, feel free to keep them coming.

 

--Jesse Biter

Dealers United

www.DealersUnited.com

 

Comment by Jesse Biter on October 28, 2011 at 9:39am

Brian,

 

Thank you for your comments and for your questions.  Let me do my best to answer them for you.

 

Regarding Group Pricing & Terms

Q: When 300 dealers in your buying group sign-up for a service, are they all willing to agree on the single term?

A: It will be a term that is always best for the dealers first.  Due to the huge discounts, dealers will be willing to agree on the terms set for each particular deal.  If they feel the deal does not meet their expectations, they have no obligation to do the deal.  Through our research and focus groups, we are finding that dealers are willing to operate this way as long as they are saving big dollars. 

Q: How will you enforce/manage 300 separate dealers keeping to the terms of their group contract?
A: When a dealer clicks on a deal and it tips, they are committing to an individual contract just like if the dealer was committing to a contract with a vendor without Dealers United.  They are also required to put a deposit down for that deal to lock in the deal.  If the dealer decides later he does not want to keep his word on the commitment, the dealer will not get the deposit back. 

Q: Is your organization willing to take on the liability of individual dealers canceling services prior to the term that was part of the negotiated group price?

A: We are going to fight for terms and conditions, including an SLA, that allow dealers to cancel their contract at any time with reasonable notice.  However, if the vendor is providing bad service and they are not holding up to their word Dealers United will step in and fight for the dealer. 

Summary: At HomeNet we were so confident that our product was the best product on the market that we were happy to allow dealers a free trial; further, we only had month to month agreements.  We could do this because we had the best product on the market.  At Dealers United we only intend to work with the best vendors that are confident in their product.

Regarding Customized Proposals

Q: I have yet seen a case where a group of dealers, that are not involved in a business partnership, agree on package scope , pricing, terms, and legal contracts.   If you bring 200 dealers to the table, how will you simplify the contract process for vendors that participate?
A: It’s really quite simple.  If it is a complicated product or service with multiple pricing levels or packages we will give those options for the dealers to choose from.  The T&Cs might be slightly different between packages but overall it's about getting the best T&Cs for the dealers that choose to participate in the offering. 

Regarding Competing Dealers
Q: Added to the concerns are situations when dealers in your group compete with each other.  You use the example of SEO, so let's use that example.  Right now, my company will not work with two same OEM dealers in the same market.   How will your group handle first right of refusal when dealers want exclusivity?
A: I love it, you and I think a like.  Being a vendor for 15 years, I've had first hand experience with what you're saying.  One of the greatest innovations of Dealers United is the ability for us to target specific deals to specific regions.  When dealers sign up we know exactly where they are located in the country thus we are able to send deals according to their location and end offerings based on zip code.  If we are doing a deal on a service that will not allow competition in the same market, we can simply only allow one dealer per competitive region to sign up.

 

Regarding Long Term Contracts

Comment by Brian Pasch on October 26, 2011 at 10:04pm

Jesse

I love innovation but I have some questions that I hope you can answer.   I would love to understand the business model so that PCG Digital Marketing can submit select services to your group for consideration. 

 

Group Pricing & Terms

 

When a large group (i.e. Auto Nation) signs a contract, they become ONE customer binded by a contract.   They internally manage their dealers that might want to change the contract or want to cancel.  They police their own commitments because they are binded by their single contract.

When 300 dealers in your buying group sign-up for a service, are they all willing to agree on the single term?

How will you enforce/manage 300 separate dealers keeping to the terms of their group contract?

Is your organization willing to take on the liability of indivdiual dealers canceling services prior to the term that was part of the negotiated group price?

 

Customized Proposals

 

I have yet seen a case where a group of dealers, that are not involved in a business partnership, agree on package scope , pricing, terms, and legal contracts.   If you bring 200 dealers to the table, how will you simplify the contract process for vendors that participate?

 

Competing Dealers

 

Added to the concerns are situations when dealers in your group compete with each other.  You use the example of SEO, so let's use that example.  Right now, my company will not work with two same OEM dealers in the same market.   How will your group handle first right of refusal when dealers want exclusivity?

 

Long Term Contracts

 

Dealers are less inclined to sign contracts over a one year term let alone a 6 month contract for services that they just don't fully understand, like your SEO example. 

 

With that in mind, is your organizations commission structure based on larger upfront fees or are they a percentage of monthly revenue?  Can you shed some light on how your organization makes their money.

 

 

I look forward to better understanding this process....

 

Brian Pasch, CEO

PCG Digital Marketing

 

See you at 2012 DMSC in Las Vegas 

 

 

Comment by John Miller on October 26, 2011 at 9:39pm

I'm In!!

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