Some Timely Advice

Yes folks, the world is changing. If we look back just a few weeks, the tail wind that carried the U.S. auto industry to over 17 million new car sales and over 40 million used car sales in 2019 has now become a strong head wind.

Let me tell you a short story: Back in the summer of 1975, I put my little blue sailboat into the back of my Ford station wagon and headed to Martha’s Vineyard to visit my girlfriend. She was renting a cottage on the Oak Bluffs side of Lagoon Pond. Having sailed for years on Lake Matawanakee, where I lived in Littleton, MA, I figured I could easily navigate this tidal pond. We planned to sail under the Beach Road Bridge and into Vineyard Haven Harbor for a romantic lunch at the Black Dog Restaurant and then sail back. 

The day was bright and sunny with a mild tail wind as we set out. The tide was high and we made good time, comfortably clearing the bridge with our little sailboat’s mast. We pulled up on the shore in front of the Black Dog as planned and my girlfriend was duly impressed. 

 We had a delicious dinner, lingered over a few beers and then set out for the return trip. 

 Now this was a different story! The tide had turned, was going out and the mild tail wind was a now a steady head wind of about 15 knots (a bit over 17 miles per hour.) From my lake sailing experience, I knew how to tack into a head wind. What I had not planned on was the TIDE. We cast off and tacked across the harbor. We barely made it under the bridge with the wind luffing the sails. For the next two hours I proceeded to tack towards the lagoon’s windward shore and back to its leeward shore. With each tack, we only gained about twenty-five feet! 

Eventually, my girlfriend got sick and tired of the whole experience. When we again drew close to the windward shore on the Oak Bluffs side, she promptly abandoned ship and proceeded to walk home along the shore! Of course, I was too stubborn to give up, but after a few more tacks, I too disembarked and walked home, towing my little boat behind me like the foolish landlubber that I was.

 I’m telling you all of this because we are now all in the same boat. Regardless of your business, the winds and tides have turned and we have to find a better way to get to where we want to go.  For anyone counting on customers coming through the front door of their businesses for anything other than groceries or medical supplies, this is a big wake-up call.

 If you sell cars for a living, the one saving grace is that for the past 10 years, the share of pre-sales made online has grown exponentially along with the number of digital sales tools. If you will “lean into” this head wind, you can still do well by taking your online website to the next level and making it into your digital dealership. 

 The tools of a good digital dealership are plentiful, from valuing a visitor’s trade-in to getting pre-approved to various VIN and year/make/model video services that provide car shoppers with comprehensive research on the vehicles your business has to offer. By helping online visitors shop, do their homework and make an informed buying decision a dealership will earn the consumer’s business, trust and long-term loyalty.  

 As Jeff Bezos also said: “We don’t make money when we sell things. We make money when we help customers make purchasing decisions”.  Consumers still need cars and its your job to help them make the right choices. With a massive change in the winds of business, you need to lean into that wind, innovate, adapt and lead. This is no time for complaining. You know what you have to do: Deploy every digital tool in your toolbox to help everyone who shows up at your digital dealership make the best purchase decision and to make that decision with you.