You Only Have Yourselves To Blame!

Having just read an interesting article on AMonline I thought I would post a little observational parody article covering what I have been reading and watching over the past 2-4 weeks, when it comes to the launch of Cinch, (BCA’s on line used car retailing platform), and the predictable responses from senior people based within franchised dealer networks.

But firstly a little housekeeping and statements of fact; those of a delicate disposition should probably stop reading now, my style is to tell it as it is and spare no blushes, and I speak from personal experience; you see I was building successful used car businesses at franchise dealer level and constructing and delivering complete programmes of used car business development for manufacturers, when some people responsible for the current state of affairs were probably still at university working on their degree and their hangover.

And before you say; “Well what the f#ck does he know?” Well the problem is I was there, I lived through the moment in time when the monumental business mistakes were made and have been telling anyone who would listen for years, that this was where you were all going to end up. But no one was listening, you carried on making the same mistakes and going down the wrong paths. In fact you are the architects of your own downfall so you really only have yourselves to blame!

Now this article is not to discuss the disruptors, I have written in some detail about them all and most of you reading this will have been sent these articles, (written for my Used Car Business Development Blog), straight to your In-Box. So I’m not going to pay those responsible for running the large franchised dealer groups the respect of saying that these disruptors are an existential trading threat to your business model, and one that is reinventing the wheel of new and used car retailing because they aren’t; I mean really? C’mon people; Carwow, Cazoo, Cinch and any of the other tech based disruptors aren’t a threat, well not to someone who knows how to deal with this so called threat; so why are they gaining traction?

Well quite simply because of two things, firstly; those responsible for running franchise dealer groups don’t appear to have the experience and business acumen to know how to counter the threat, and secondly; you continue to hand them a business on a plate for free! So, low and behold, don’t be surprised when they take advantage of that situation, whilst at the same time noticing that your organisations appear to be no longer interested in operating as a successful retailer of used cars.

So how did you all get here? Well to be fair to those in positions of responsibility now, (although why you aren’t reversing these ludicrous decisions nobody knows), the poor decision making all started back in the early 90’s; a time when branded used car programmes were coming into their own and used car retailing under the banner of manufacturer approved used car programmes was taking off. But instead of grasping the opportunity during this period three major and fatally flawed decisions were made; the manufacturers stopped recruiting genuinely successful and entrepreneurial franchisees to their networks, (in favour of the large PLC’s), the PLC’s put a the wrong people in charge of running their businesses, (they also didn’t want genuinely successful and entrepreneurial sales and business development professionals in their employ), and everyone gave up investing in successful used car retailing and training the professionals required.

Now within all these lamentable decisions probably the most damaging operational decision of all was the hallowed “All Auction Disposal Policy!” Now I won’t get involved too deeply in this subject in isolation now, I have covered this subject many times, and in the articles below taken form my Used Car Business Development Blog, but this decision more than any other has lead you to here.

The Madness Of “All-Auction” Disposal Policies And The Cost That Will Be Paid!,,, (UK Manufacturers Article)

The Madness Of “All-Auction” Disposal Policies And The Cost That Will Be Paid!,,, (UK Dealer Article)

Now I had the misfortune of being responsible for growing used car retailing for a PLC owned BMW dealership at this time and I can promise everyone reading this article, that this decision was made by people who should have been nowhere near the operational running of a successful business; the crusty middle aged men on the board and the accountants. Why? Well this decision was responsible for two things; the exodus, over time, of genuinely successful used car professionals and the growth of BCA, (along with the other auction houses), into what they are today.

So in an instant you disposed of the vital skills required to grow successful used car businesses and handed a business over to the auction houses for free, so stop being so incredulous at what BCA are doing now. YOU are responsible for the threat you now face and YOU continue feeding the beast that will eventually consume you. Don’t believe me? Well let me quote a Chief Executive of one of the country’s major PLC’s, from the article itself, who said; “his business had no use for the Cinch platform as its in-house digital channels were delivering strong results. But while he said that BCA’s move into retail would not affect remarketing relationship with the top AM100 group, that stance could change if the venture proved a success, shifting its position to that of a “rival”.

F#ck me! Did you really say this? Jesus Christ! So the fact that Cinch is now a blatant retailer of used cars isn’t going to stop you from continuing to feed this business with the stock it requires to grow profits and grow stronger! But that’s ok everyone, don’t worry, because the moment it’s a success that may change! Holy sh#t, it’s already looking pretty f#cking successful to me!

I would’ve thought that the role of being a Chief Executive of a major PLC owning vast swathes of franchise dealer networks, would have included the remit of commercial threat analysis, seeing the bigger picture and building the trading resilience of your own business? However, it would appear that I was wrong about that.

But this attitude is typical of what I call “The Breed” running manufacturers and franchised dealer groups at the moment; Rome’s burning and you’re doing nothing to address the balance. Now to be fair, anyone who has got to this point may be feeling a little peeved by now, so let me give you some free intel as a thanks; and some honest feedback and advice from a professional who has been building successful used car businesses for nearly 30 years.

Stop being so bloody ”Needy,” wanting to be “Liked;” and when I say this I’m talking about your whole business culture. I won’t expand on this subject in great detail in this article, I covered this issue in the article listed below. Try to remember that you are in the business of making money, not being “Liked.” And dispense with the bullshit theory that customers buy cars from people they like because this is utter b#llocks! People buy cars from people and organisations they trust; they do not visit your business to find friends or their new partner, you are not Tinder Cars!

You Start Negotiating When You’ve F@#ked Up The Sales Process!,,,(UK Dealer Article)

Now I have seen first-hand the ramifications of this “Needy” culture and what that means in practice, in terms of the sales culture within your businesses, and it is stifling success and leading you to where you are today. If you grasped this fact alone you would realise that the sales side of your businesses is populated by the wrong people, with the wrong mind-set. Instead of employing and developing the very best sales professionals you can you employ, your sales people are hiding behind basic salaries and wanting nothing more than a 5 star review, not the sale, the sale, the sale!

Think I’m being harsh? Well I’m not, and this culture is the reason why you face the threats you do today; it’s why Carwow, (who shouldn’t have a business), Cazoo, (who shouldn’t have a business), Cinch, (who shouldn’t have a business), in fact any of the tech based disruptors who shouldn’t exist and have a business, actually do have a business! Because your whole sales operational and management structure is geared to being “Liked” you employ people with this mind-set, and these are not entrepreneurial motor traders and/or sales professionals.

If you employed and developed entrepreneurial motor traders and sales professionals things would be different; new cars would not be appearing on Carwow, (which is effectively the platform where you admit to your peers and advertise the fact that you can’t do your job because you don’t know how to sell new cars - my real concern is that nobody seems to be shamed by this), and cars would not be sent to an auction house like BCA!

Entrepreneurial motor traders and sales professionals realise that this is business suicide, because they know that if you control access to stock, you control access to the market; so the last thing you should ever be doing is giving that stock away to a competitor, for them to control access to your market and your customers! Has the penny dropped yet?

Anyway, enough! Sadly the majority of the people reading this will carry on apologising for themselves, chasing strokes, burying their heads in the sand and building competitors businesses for them for free. However, anyone curious as to how to take your business back can feel free to contact me; no doubt it will be a robust, frank and to the point, and maybe a difficult conversation, but who knows, you may learn something.

Andrew.