Future of the 'SMALLER' independents

[umesh 336]

Future of the 'SMALLER' independents

Looking and reading all the articles it seems the bigger are getting bigger , and the smaller are getting swallowed up by the big guys! or going bust!

so what happens to us ? the smaller independents !

what is the future ? will be survive ? are we all just surviving and paying the bills ?

Are we all making sufficient to keep re investing or just about hanging on ..for another year?

Seems a very mixed picture out there, most who do admit the 'truth' are saying are going from month to month- year to year and cannot see a rosy future , it pays the bills !

So who can help -if anyone ?

is it getting the right cars from the right place at the right price?

is it the marketing platforms and that they could be bringing more leads /sales for less costs?

is the small independent doomed or is there ways to change and its going to be the 'RISE' of the small independents !

Any thoughts ?

[Phil H 124]

Umesh I couldn't agree more, The big are getting bigger and controlling the stock and in this job whoever controls the stock controls the market including prices, so if we want stock we either have to pay their prices or try to survive on selling fresh air, which as we all know is impossible.

Lets go back 20 years when the auctions where perceived as not a nice place to buy from, a common saying was that if it's in the auction it's there for a reason. In those days we didn't have to go to the auctions as the lease companies would sell direct to us, so would the main dealers but this was ruined for us by the corrupt people who where part of the brown envelope gang. The auctions picked up on this and cleaned up their act, seized the opportunity to prevent corruption, engaged with the lease companies and main dealers and offered them a branded sale stopping the corruption of the brown envelope gang and instead starting the trotting up gang. We all know that trotting up happens but as we all need the stock we're powerless to do anything about it. A Source of good value stock gone

Now lets go back 15 years we could still rely on part exchanges and getting stock off auto trade mail when it was owned by dealers, it was a cheap way of buying and selling and in it's heyday it worked when it was run by people who understood the job, then what happened, it got bought out, prices increased and anybody could get a subscription to help pay for the takeover. Another source of good value stock gone.

Now let's go back 10 years and the invention of the cash for cars industry, as you know Umesh I'm actually the person who introduced this market to the masses with my first website 10 years ago, Some of the biggest players in this market where buying cars from the public via my website before starting their own. (I won't name them for now) For this I'm truly sorry I launched the cash for cars market to help cut out the middlemen instead the big boys seized the opportunity, made them more powerful and they have become the biggest middlemen of all, Another source of good value stock gone. 

What we must learn from the big boys is that they are sticking together with the various partnerships now formed, so us small independents need to follow suit and instead of fighting each other let's stick together but it's hard as they have so much capital behind them, so much power dictating the prices for purchasing stock and also the cost of advertising. All this does is have a massive impact on our margins and if we're not making it then it's hard to re invest. 

Now Umesh I genuinely believe that I've developed something that can help us smaller independents fight back, if we all stick together, but the only people who can let it down is us. So if there are any genuine motor dealers who'd be interested in making a difference and fighting back just send me a message and once vetted we'll talk further. Just as a taster one of the features that I've been developing is called "used car dealers you can trust" as well as others. 

If we all stick together we can pull through to prosperous times ahead. Don't throw in the towel just yet. Everything goes full circle in life. 

 

[Daylight 28]

I personally think there are as many types of buyers with as many types of preferences as there are types of dealers. 

The big guys gain and build their customer base with the customers that like 'every car in every colour', a manufacturer badge over the door and, whilst browsing, get greeted by a pretty lady in a freshly pressed uniform waiting to serve them tea and biscuits in their brightly lit car palace. They get called sir or madam and treated like they're the most important person in the world, they know the customer's satisfaction (regardless how unreasonable the request is) is of the utmost importance because that is what they get bonuses on. These customers will always shop this way, the big guys take this capital gained and buy up those that are trying to compete in this market but simply can't afford to keep up.

The other hand is us lot who (hopefully) treat the customer like a human being, build a rapport and gain their trust through honest trading, not a veil of clever pre-learnt phrases taught at this weeks training course taken by a person who's never been near a car showroom. Our customers come back to us because they like us, they tell their friends for the same reason and, as long as we keep heart when the times are tough and continue to do so, we have a chance of strong survival & to flourish if the business model is good enough too.

Something has to give to allow us to work as i've described though, we can't keep paying too much for good stock, too much to let the public see our stock AND backing them up to the hilt to keep the customer happy if it goes wrong. As Phil said, we can't live on fresh air alone!

Just my 2p 

[It's me 609]

Theres too much medium out there to help us small independants survive and too many at it and too many people willing to still buy off kerbside buyers to save a bob,we are getting it from every angle and lets be honest here unless you have a large chrome place then customers seem to think we have no overheads,best is customer asks where do you get your stock because they've been looking for this model at the auctions for ages and there's non or it was dearer at hammer price for them but they still want all the add ons and want it cheper,roll on the day i can shut up shop and live on me £75 a week penshone