I have enjoyed reading posts and articles about #Vroom exiting the used car business. Including this interesting take https://lnkd.in/gKMnBmk4
The news took me back to early days with Roadster. Reflecting on daily conversations with dealers and groups in ‘18-‘19, the following were the two most popular reasons to not consider adopting a #digitalretailing process.
“I am not worried about #Carvana, it is never going to work, they can’t make money”
This is reality now but it’s no more relevant than it was at the time when Carvana was valued at billions more. The future of Shift, Vroom or Carvana has always been irrelevant. #dealers don’t have to compete with them when they go out of business (did they ever?).
However, we all have to live with the new customer expectations created by these companies for a very long time. Eventually, someone will come a long and build a better Vroom that will make all the money. No one made more money from MP3 players and connected phones than #apple . Where are the companies that built the first of these devices now? The answer is, it doesn’t matter, because their failures didn’t result in Sony selling more Walkmans.
“I know online sales are the future, I will wait until it’s here. I don’t have to adopt now”
Sadly, this was true, but a waste of an opportunity to gain a competitive advantage nonetheless. In the first 2-3 years of dealer websites, those who saw the value and adopted the tech early gained a competitive advantage. They trained their people, created processes and tried different ways to execute on a new customer experience. Those dealers stayed ahead, even when everyone else was required by the OEM to have a website. They were positioned to leverage reviews and social reputation. Digital retailing technology hasn’t been any different. Now that everyone offers online sales capabilities of some sort, only those who execute a modern retail experience will earn a bigger piece of the pie. They will enjoy the ROI that comes from the people and the process not just the tools. Ask the used car king, Todd Caputo, how he did it.
I believe automotive retail will continue to evolve rapidly. Let’s heed the lessons learned and not let anyone - ever again- paint the good people of this industry with Super-Bowl-ad-budget-sized insults. Ironically, Vroom got in trouble for committing, at scale, the very deceptive practices they made to be prevalent in the industry.
Collectively, we will be sponsoring high school teams, huddling around those affected by #layoffs, and finding our neighbor the car for their kid, all in a day’s work.
Vroom on ……to a happy and productive #nada !
Car Dealer Coach
6ySeriously? Maybe you have slow email and this is from 2016.