Comparing two sites: Unit vs Roadside

[Mojo121 229]

2 minutes ago, ExCouncilJobsworth said:

Lucas i used to work at councils.

UK councils claim they are penniless yet they can afford to hire several consultants on £800 per day per consultant. Some councils have several consultants. They cause more cock ups and leave.

I am young and innovative and will charge £400 per day to run your business or provide you with advice. 

I am being serious. 

That’s a terrible pitch. 

[Screenman 47]

Lucas where is the road side site?

[Jack Regan 116]

Go for the roadside pitch , you'd have to be there all day though , and trust me you do get walk on's.

 

[Dave2302 387]

[Blenheim Car Sales 111]

Lucas you seem to be keen on posting threads on all manor of things we suspect you have access to 200k have you actually done anything as yet to get this something going ?? or  is it another 6m of threads and then we never hear from you again

[Del Boy 76]

15 minutes ago, Blenheim Car Sales said:

another 6m of threads and then we never hear from you again

This!

Once he has blown the cash, he will be doing something else. 

[Lucas 9]

2 hours ago, Jack Regan said:

Go for the roadside pitch , you'd have to be there all day though , and trust me you do get walk on's.

 

Thank you Jack.

[Lucas 9]

1 hour ago, Blenheim Car Sales said:

Lucas you seem to be keen on posting threads on all manor of things we suspect you have access to 200k have you actually done anything as yet to get this something going ?? or  is it another 6m of threads and then we never hear from you again

Thank you for your input. Please forget the money. I don't want to show off the money thing even I did a post about 200K looking for a business partnership at the very first time I get to this forum. That was a stupid mistake. Please forget about it. I keep posting the questions here just because I found people here are really helpful. I always got good advice and knowledge from the comments. They taught me a lot. I have to clear again that the only purpose for all my posts(except the very first one was looking for a partner) is for learning only. I am not looking for any other benefits. Not intended to show off or trying to prove anything. It just not necessary.

Regarding your question for me. I do have some basic things done like registered a company, VAT registered, got a trade plate, etc. Then, now I am trying to rent a premise. Yes, not sold anything yet. Not even have a thing on the market yet. But it's all right. I don't think I have to sell a lot or must have a lot of experience before to set up a business, even though basic knowledge and common sense required. It just a choice. However, I do agree my way is the riskiest way though. So, I won't encourage others to do my way as well. As you can imagine that I am a new player. Things are going very slow, and the mistake made all the time. So, I am not really looking for a good result. Not saying to make good money, not saying to make it a success. My expectation is low since I know that I am not good at it. No big deal, just keep going and learning.

Thank you.

1 hour ago, Del Boy said:

This!

Once he has blown the cash, he will be doing something else. 

Thank you for the comment.

Edited December 30, 2018 by Lucas

[Lucas 9]

7 hours ago, Screenman said:

Lucas where is the road side site?

Thank you Screenman. I don't know if it's suitable or not to tell the location here. It's a private deal, not on the property agent network. It's about 50 minutes drive from my hometown. It's in a small town but quite high traffic location. I think it has average 8-10K cars pass through every day. The site, however, it had a car trader before. Then he moved recently. There are many competitors surround the target area, too. Some of the competitors seem to stand there for 10-20+ years already. The competitor's price points are various from 2K to 40K, stock levels from 30+ to 120+ cars. And all their stocks are on AT of courses as I mentioned before. This is all I can come up with this site. 

I think it could be a good site if it run by an experienced trader.

Edited December 30, 2018 by Lucas

[Screenman 47]

So you are in the middle of a load of guys who spend a lot of money on AT, make yours the best looking site and the best stock and you could nick customers off of their adverts.

I know your area quite well as I had sites down that way in the 70s and 80s. 

[It's me 615]

1 hour ago, Lucas said:

Thank you Screenman. I don't know if it's suitable or not to tell the location here. It's a private deal, not on the property agent network. It's about 50 minutes drive from my hometown. It's in a small town but quite high traffic location. I think it has average 8-10K cars pass through every day. The site, however, it had a car trader before. Then he moved recently. There are many competitors surround the target area, too. Some of the competitors seem to stand there for 10-20+ years already. The competitor's price points are various from 2K to 40K, stock levels from 30+ to 120+ cars. And all their stocks are on AT of courses as I mentioned before. This is all I can come up with this site. 

I think it could be a good site if it run by an experienced trader.

If it had a car trader before but is now empty then you have to ask why?

It's usually because its too dear no walk on trade or its reputation is real bad in the area

If it was any good another trader would be there and you wouldn't know it unless you realised the cars had changed

[DPF 18]

16 hours ago, Lucas said:

Thank you for your input. I also think of this way earlier last month. Then I sadly found out all the roadside car dealers in that area have all their stock listed on AT. Some have 30+ cars, some 60+ cars, and some have 120+ cars. They still paying a lot to AT. Looks like they're not saving any advertisement fees. Really, until now, I can't find any dealer in my target area who is not realised on AT. This is good news, but also bad news. 

Despite the fact that AT rule the used car buy and sell market. But roadside, somehow still attracted me. That is why I have to ask this question here to get more opinions. Thanks.

This shows you preferred site 2 but just hoping for reassurance 

[Lucas 9]

6 minutes ago, DPF said:

This shows you preferred site 2 but just hoping for reassurance 

No preferred yet since I really have no experience whatsoever in the car sales location thing. I just express my common sense feel that could be a good site for a pro. I could be wrong since one pro just left the site. Furthermore, it's 50 minutes from home. Not easy.

The site 1, however also good. Because of it just 15 minutes from home, it's a good size, all indoor, many car repairs, service and mot stations close by. It also could be a very good site if it's operated by an experienced pro.

[Lucas 9]

37 minutes ago, boring dave said:

If it had a car trader before but is now empty then you have to ask why?

It's usually because its too dear no walk on trade or its reputation is real bad in the area

If it was any good another trader would be there and you wouldn't know it unless you realised the cars had changed

Yes, you are right. This is a concern. My understanding is that not so much walk-in business. The pass-through traffic just drives through to somewhere. So, maybe not really useful. The previous business moved (looks like failed) could also most likely because of their operation. As I see several competitors nearby doing still fine and long-standing for decades.

55 minutes ago, Screenman said:

So you are in the middle of a load of guys who spend a lot of money on AT, make yours the best looking site and the best stock and you could nick customers off of their adverts.

I know your area quite well as I had sites down that way in the 70s and 80s. 

Good idea! As most likely the customers will drive through this site while they are going to some of another competitor.

[It's me 615]

4 minutes ago, Lucas said:

Yes, you are right. This is a concern. My understanding is that not so much walk-in business. The pass-through traffic just drives through to somewhere. So, maybe not really useful. The previous business moved (looks like failed) could also most likely because of their operation. As I see several competitors nearby doing still fine and long-standing for decades.

Always good to dig a little deeper i.e. do a company check its surprising how many businesses are zombie ones so just because they are established doesn't mean a jot, anymore

[Lucas 9]

1 hour ago, boring dave said:

Always good to dig a little deeper i.e. do a company check its surprising how many businesses are zombie ones so just because they are established doesn't mean a jot, anymore

Thank you, Dave. Very good remind. Yes, the previous business registered 5 years ago, still legally active but totally out of business already. A young man owner. He got 4.8 rates from the 20+ reviews in AT. Total asset before the business close down was about 120K for 30-40 cars. So, the average stock sales price point at 4K in my understanding. 

One thing almost certain is that the previous owner must have a thousand times more experience than me in the car business. That said, I will certainly fail if I do the something. So, for this site, market research deeper is required.

Furthermore. One of the competitors close by, he has 110-120 cars in stock, total asset approximately 750K. About 46% inventory bought by financing, plus 200K overdue debt, so the real asset net worth is about 160K only. That guy is a very experienced pro, I think he did a very good job by using 160K only to stock up 110-120 cars at the average sales price point at 7K. So, this shows clearly it's impossible I could compete with him in any way I think.

Sorry mates. I might be wrong to express my non-experienced view here. Thus, this is the reason why I keep asking questions here. I need to learn more about the business. Thanks.

Edited December 30, 2018 by Lucas

[Lucas 9]

 

Okay. After several days struggling. As the first decision of 2019. I will go for the roadside pitch. Far away from home, but bigger, and at least people can see it and know there is a car trader exist.

Happy New Year. 

Edited January 2, 2019 by Lucas

[Lucas 9]

Thank you tradex. Yes, it's too far, so I will have to hire at least one salesman on-site.

Edited January 2, 2019 by Lucas

[metcars 397]

6 hours ago, Lucas said:

Thank you tradex. Yes, it's too far, so I will have to hire at least one salesman on-site.

If you are going to employ a salesperson to run the site why does it need to be within daily commuting distance for you. Instead, buy a site 'up north' for peanuts and get stock for peanuts. It's all way too expensive down South.

[Lucas 9]

Thank you met. Good idea. Will do some research up north later.

Edited January 3, 2019 by Lucas

[Austin Petersen 0]

I will choose location 1

[metcars 397]

Exciting times!

[Mojo121 229]

Roadside pitches aren't all they're cracked up to be. I have a great one. Probably results in 1-3 sales more a month. Customers seem to prefer a roadside setup versus a unit though.

[NOACROSS 414]

16 minutes ago, Mojo121 said:

Roadside pitches aren't all they're cracked up to be. I have a great one. Probably results in 1-3 sales more a month. Customers seem to prefer a roadside setup versus a unit though.

You’re right. Exactly this. Same for me. It’s all mostly virtual browsing, but it is an advantage to have a site when the turn up or see the set up online. That’s what I tell myself anyway. ;o)

if youv’e got something leary or flashy on the front, it’ll sometimes sell from passing. 

[Lucas 9]

That's what I am thinking, too. I actually didn't know car sales can be in the industrial unit and home-based before! As an end user, I thought car dealers should be found on the roadside until I come to this forum. So, maybe some other end users like me also only know the roadside dealer. That also convinced me to take the roadside pitch.

Edited January 3, 2019 by Lucas