I just returned from the 2013 NADA Convention held in Orlando. It was great to see several South Dakota dealers in Orlando. I hope those of you who did attend found it beneficial.
The Exposition floor was packed with vendors and dealers. There were many new and updated products and services. I am amazed at how the expo floor and the vendors (BDC’s, CRM software, social media initiatives, etc.) have changed over the past five years.
David Wescott Takes NADA Helm
The NADA Board has its winter board meet just prior to our convention. Bill Underiner completed his year-long stint as chairman. Bill did a great job for NADA and especially for small dealers.
Dave Westcott from North Carolina now takes over as chairman. Dave has served on many NADA committee's and brings a lot of experience. I am confident he will do a great job.
I received my committee assignments for the upcoming year. I will serve on the Public Affairs committee again this year and I will be on the Dealer Operations committee. It has been a couple years since I served on Dealer Ops so it will be interesting to get back to that. I also start my 3-year term on the Finance Committee having served a year filling out an appointment. I am looking forward to a great year.
Glenn Mercer Phase 2 Study Released
On Saturday in Orlando, Glenn Mercer highlighted the findings of the second phase of the facility image programs. This study analyzes the Return on Investment (ROI) of image investments in the short term, and examines whether these investments might be right in the longer term, for Dealerships of the Future. The first phase of the study was completed a year ago.
Mercer said one of the goals of the Phase 2 study is not to prescribe a "one size fits all" solution, but to assist dealers and auto manufacturers alike to better understand each other's points of view better, and negotiate on a more informed basis for the most-efficient (low cost) and effective (high growth) way to invest in dealership facilities, not only for today, but for tomorrow as well.
Mr. Mercer said the current trend to build more expensive and more brand-customized auto dealerships will lead to excessive and wasteful spending, as dealers repeatedly raze and rebuild their facilities, and as auto makers constantly update their brand image campaigns.
Perhaps the most relevant finding of the study, at least for South Dakota dealers, was that standardization spending is almost always a "pure deadweight loss". That means there is no ROI to tearing up floor tile, replacing mullions and closing up "customer touch points". While this comes as no surprise to small and medium size dealers, I hope it is a revelation to the manufacturers!
FTC Warns Dealers on Buyer’s Guide
The Federal Trade Commission has warned 11 used car dealerships in Jonesboro, Ark., that their failure to properly display the "Buyers Guide" on used vehicles offered for sale violates the FTC's Used Car Rule. FTC staff inspections in Jonesboro found that eight dealers failed to display Buyers Guides on almost all used cars offered for sale, and three dealers failed to display the guides on a significant number of used cars. Ten dealers properly displayed the guides on all or nearly all of the used cars offered for sale. The FTC sent warning letters urging the 11 dealers to come into compliance by properly displaying the guides in a clear and conspicuous location on all used cars.
I always welcome people to come to our beautiful state, but I invite FTC investigators stay the hell away!
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