we’re perfect if you happen to be in the midwest or further west on your time good morning, still to you, but it’s time for artisans tips.
We do it every wednesday live.
So i hope i have some new car sales representatives, but i hope i have some managers because i got something for you today.
Last week was different.
We talked about hr or human capital if you will and some of the finer things that you need to be doing with that this week, we’re really honored to have one of our own from the car business, mr richie bello, but what he did was graduate to Own technology companies – one thing that i liked he did – he opened up a non-profit for veterans out in arizona to give them an opportunity to do work that we feel that we’re stressed out on which is technicians, sales, people, service advisors, but he’s doing a lot of Things, but he has found something that i need to share with you.
I do it during my lunch time, so my people are out to lunch.
Don’t want to waste any more of your time, so mr ritchie bellow, thank you for being a guest this afternoon.
Thank you so much brandon, thanks again for having me and thanks for the introduction, so uh brendan what i was telling you uh quite some time now and that’s why i think you invited me to the show – and i wan na, thank you for the show uh.
The whole thing with that is brandon uh.
Let’s talk about the rental companies, okay, okay, let’s talk about the history of the rental companies, so they have all these cars, so they cut deals with the auction that was yesterday.
They turned over their inventory.
Then they figured we’re not getting a lot of buck for our dollars.
Okay, so let’s do this.
Enterprise was the first one that opened up when the cpo came out, where you can actually buy a late model car and certify it right right now that went well for the dealer sector right now.
What they’re doing let’s talk about today and the numbers are showing every dealer there can call ihs get a report or they can call dominion which they have.
The cross sell report also and get registration data they’re selling cars like candy bars online.
One of the companies is, we all know about carvana right, but the other company is hertz.
Avis is the best one out of them and enterprise.
So you go wan na buy a car from avis right there you can buy a car, they have a back end that finances all these cars for the i know about this for the last four or five months, so i’ve been keeping my eye on the market.
What’s gon na happen now we know about the history of them.
We know about what’s going on today.
Well, what’s gon na happen tomorrow, tomorrow, you’re gon na see your penetration drop on cpo that deal of principal gon na, say brandon.
Why did this drop? Oh he’s? Only gon na compare dealers, no mr dealer get the list of your market share because you just lost 10 of your market share right out the window.
Okay, now we’re doing digital retailing, so they can’t sell new cars, but they surely can sell our pre-owned vehicles and now we’re talking about the super highway.
Okay, we’re talking about customers are scared to walk into a dealership with this coronavirus, so they’re having a field day with this ban solution comes out.
Shop.
Smart is always for dealers.
Richie bellow is always for dealers deals 100.
I can care less about anything else.
I’m always trying to bring a solution.
Here’s the solution.
Shop, smart is going to have the same type of technology that these companies have because we’ll partner up with dealer track and kelly blue book, so we’re gon na have the finance driver right in our platform where you’re gon na.
Oh, you want to buy the car delivery at home.
You fill it out.
It goes into your dealer track boom problem solutions.
Greater okay, we’ve been developing this solution as well.
As you know, for a year and a half okay, that’s why i’ve been off social media.
A lot on and off basically off that’s the solution.
Mr dealer down.
The road is going to get trainers.
Corporate training, hey, listen, they’re! Beating me! No, it’s not your dealer! That’s beating you! It’s not your dealer! That’s beating you! It’s somebody else! That’s beating you and guess: who’s beating you, okay, the first guy, that’s beating! You is your rental companies, because they need to turn iron as much as anybody else and now that’s part of their solution.
Okay, so that being said, that’s part of their solution.
What do we do? Mr dealer? You either got to go online like them, because you don’t want your competitor to have something.
You know, that’s a dodo.
Okay, now you got a problem, so your rental companies are pumping in tremendous amount of registrations and it don’t have to be any more good credit because they teamed up with a company that has all kinds of financing.
So now we got a problem, but we have a solution.
So what shops want is a great solution.
The other thing about shops about is just to let you know.
When you buy a lead from us.
We integrate professional corporate trainers like yourself, okay, we integrate that.
We give you six hours complementary for training, we’re at 50 a lead.
Let me ask you a question, mr dealer: stop hiring trainers, buy the lead, get the trainer get trained and that’s it.
That’s bottom line.
You know, and now you have a solution where we got the same solution as hertz and all these uh companies that are pumping in registrations in your market.
I urge every general manager and every dealer to call ihs right from the wall and touch base with them and get registration before you have a meeting with your corporate trainer and worry about cpo, because you know what you think it’s bad now wait till you see And i’m sure in your company you see some numbers are drifting.
It’s only going to get worse because registration data comes out quarterly.
This quarter, your head would spin what i saw: who’s pumping in pre-owned vehicles, a lot of information, okay and i’m gon na start sending out email campaigns to dealers.
Okay, i’m gon na tell i’m gon na say this right here on live.
My email campaigns is gon na, be all about data data and data and data about your market conditions about what’s going on in your market.
So when you see the email from richie bellow or from shopsmart, be aware that i’m sharing with you information to get you to that next level and make you aware, we all know that awareness brandon is everything.
Yes, if you’re aware you can handle anything how people overcome drinking is by being aware that they’re alcoholics, when somebody does a recreational drugs, you? How do you give that up by you being aware, you got to get revenue? How do you do it by aware, so that being said, make your dealerships aware, which is what i plan on doing and giving them the most information.
All complementary, all complementary to the dealer sector, because who i care about is the dealer and let me go over.
Why? Because the dealer hires an average of 90 to 100 people so when they go out of business, there’s a hundred human beings looking for a job.
That being said, ask me any questions: okay, excellent! Now! Thank you for that.
So we got hurts enterprise avis! Doing this would you happen to know because you’re, the statistical guy here with that? What percentage of dealerships do not have a good online presence digitally? But just tonight now i would say 80 of them right now of them right right now, none of them and when you tell them, when you tell them what’s going on, they try something and there’s no follow-through they’re.
Actually, if you’re not prepared in your dealership, that’s why i say 85 percent because they ain’t prepared for online there’s no training up in the wheel, no deals how they do things right.
They walk because they see others walk.
Okay, okay, they don’t have any process.
That’s where training comes in, they need to hire professionals that know how to deliver cars online, because it’s on this on a text, a texas dip, it’s not the same as me, and you were talking right, not the same.
It’s totally a different animal! Here’s where the problem is so dealers try it.
They say this is not working guess what your other companies have.
Tremendous infrastructure with phone rooms would follow up with this with that and guess what they’re gon na beat you hands down? Gotcha gotcha hands down now now and what is the mess is that other companies have tremendous infrastructure that are selling pre-owned vehicles and they’re eating up the market share and every quarter, there’s less penetration from the dealer sector and there’s more increasing and increasing and increasing huh.
So buyer beware: dealer be really aware.
Okay, i mean get this serious, go out there and hire who you got ta hire to develop this infrastructure.
The same thing is when bdc came into our market deals didn’t know about it.
They hired all these trainers right to put that.
Well, you need to hire internet guys, guys that know the e-commerce site, guys that know what platforms to use i’m going to mention something one of the best platforms to sell cars online is magento.
That’s one of the best platforms out there.
I urge dealers to get develop shop.
abcmotors.
com and have your ecommerce site boy uh.
Let me ask this because you said it earlier: did i hear you say that this uh shop, smart, you said 50 50 leads no 100 leads.
The minimum is a hundred at fifty dollars and we got three products.
We have used cars from your inventory new cars from your inventory and we develop something: that’s called conquest sales.
So if you’re, a honda dealership, you want to penetrate toyota customers right guess what we have them all right right now, mr dealer, i’m sitting on over 1900 leads every week and your competitor is buying those leads and penetrating your brand outstanding so because they want conquest Sales, so right now, there’s some deals that are on the program and some that are not uh.
If you go to a shop smart, you see the part that says: vehicles, okay and certified, and you cause the vehicles – are our customers.
Basically, dope dealers are buying the they’re buying the leads they’re buying the concourse sales leads.
So how long has this shop smart auto’s been available? Uh, you know what brandon honestly we you know, we’ve been developing it for the last year, plus yeah uh.
We reached out to your company at the beginning of the stages we weren’t ready.
Yet i was not selling anything and there’s a press release out as of august.
The 15th is when we’re ready to go to the market.
Okay.
Okay, now all the functionality works where, by friday, we’re gon na be putting in a dealer track, and i don’t want to say this here.
I would like a test from any dealership that would like and no charge i’ll deal a track on their inventory and they watch their leads go into their.
They i’ll do that, and i’m not going to do that for 30 days.
I’m only going to do that for five for 10 leads.
That’s it and they’re gon na see that they’re gon na start delivering cars like these other companies, 10 leads.
I’m going to give you 10.
i’m going to guarantee you 10 leads 10.
right.
Anybody wants that call me 631-578-9018.
So let me just make sure for some of the people that came in a little bit late, because some of your followers are are on here and and that’s great, so dealers that do not have a good presence digitally on their site instead of them going out With the hr function and hiring someone, and now you have to take care of all the back end as far as the insurance and everything they can come to you and your company and you will coach them, give them some did i hear complimentary training yeah i’ll, Give them compliment when they buy the lease from us.
Our product is just you buy leads a minimum of 100.
You get immediately trading on zoom for six hours.
Okay, every week we get a few hours and we go over.
What the process is.
That’s our product.
You buy leads complimentary training done that six hours, okay, my professional automotive trainers that you know of them who they are.
Oh that’s one thing that happens, but i want to show dealers that the online press is very important.
I’m willing any deal that i called.
I can have 100 deals, should call me tonight and i’ll turn them all on every single one of them i’ll give them 10 leads to test deal a track.
10 leads to test dealer track.
It goes right in your dealer track with the deal structure and everything all you got to get.
It is approved.
Okay, wow: that’s what these rental companies are doing, pay attention to this because the cpo as we know it, it’s always going to exist, but the numbers are going to drop and now that’s big gross profit.
So, let’s talk, why is used car such a big profit? You got reconditioning, you got retention and you got new cars, i mean they used car sales, the gross profit correct.
Really really, when you look at the gross profit, it’s big money, but it’s not as much as your service department.
Okay, that’s where it’s big! Listen! You don’t want these rental companies to do, because you know these rentals renters have company are going to do they’re going to team up with these fixed ops places or whoever they’re going to do partnerships! Because that’s what’s going to happen, they don’t have a shop like the dealer.
Does that’s our value? Okay, our value is that we can fix them.
We can sell them, but we can fix them.
These rental companies can’t fix them.
They got ta, send it to somebody else.
Okay or the customer goes to their local garage.
We have to take control, that’s the solution we as a dealership or for you getting your car serviced.
So you know what, if i’m selling cars and my competitor doesn’t have a shop, and i do i’m discrediting that deal in about 32 seconds.
That’s how long it’s gon na take me to discredit that deal.
Gotcha, okay, gotcha, but here’s the thing they will down the road, get it and we’re in a price, sensitive market right now, because what’s going on with corona, okay, but the gross profit of the dealerships have gone up.
Yes, why is that i’ll? Tell you why that is right, supply and demand the oem’s cut back watching coronavirus does not a lot of cause of inventory bank supply and demand when that supply and demand goes away, be careful, okay, be careful and the used car grosses are about to say they’re, Not a little bit high they’re actually going to drop from the last quarter that i saw about 275 dollars.
Why did they drop because of these companies? You know what it is to drop your hun 200 and a quarter per car.
It’s a lot of money! Gentlemen.
It is that’s a lot of money because they’re selling and when you add the registration and you add what the pro, what the gross profit has dropped to new car dealers and independents.
When you do those numbers, it’s a bible.
You know data can actually talk to you if you really want to, but i like that yeah the data can actually speak to you like you’re speaking to me, data data can communicate with you.
If you look at how much are they penetrating and how much is the dealership’s profit gun down on used cars? Now you look at those numbers and, oh i i can identify the problem.
Listen.
You can actually manage anything through metrics right right as long as you have the metrics.
It can communicate with you.
You communicate with you, you got it now, i’m assuming in that total was turn because i still hear that a lot from front to back.
It took a long time in the back to get it turned to get it pictures on site to get it on the front line.
So i guess that’s a very close friend of mine last night called me got a suburban okay, so he gets this suburban and he’s having a problem turning it on whatever he gets.
Onstar well, allstar gets on the phone and telling uh he wants wi-fi this guy’s nuts right.
He wants wi-fi.
Okay, great, they tell them.
You know you can get roadside assistance.
You can get this.
You can get that you know what 20 a month.
So anybody that can buy buys a car from there through all the weapons.
They turn that on bam, they got a roadside assistant.
So now you got a problem because your oems are promoting that the same way with mercedes, the same type of thing.
So i got plenty of friends that buy cars all the time and they talk to me and tell me you know whatever you know me, i don’t pay attention to it, because i i can’t drive anyway, so i don’t care, but i like a vehicle, you know What i’m saying, but i watch these things that happen in this marketplace, and you know what the data is there brandon and i’m sure in your group.
You take all 18 stores right away and talk to your accountant to pop in the data for you either to dms and have a look at her journal and tell you.
Where is my average gross right now run a daily operating control, a dock right find out where your average is now on used cars years years and go back to last year and do a compatible analysis.
When you do that, you know you see a big change.
I like that, i like that uh before it’s time for both of us to go.
It would be remiss of me if i don’t bring it up just because i i love the vets.
Could you just mention something about your institute and why you wanted to go that way? Yeah.
You know what i got a.
I got a trip plans.
I got ta, i got ta be in florida, i’m gon na swing by washington.
I might have the grants and all that, so we’re working really really tight on that.
We really haven’t said anything yet because we’re waiting to get there and uh sent out a press release, but uh we’ve been working on that now for even though this corona happen and all that my team’s still working on it.
I still have the same team members.
I haven’t changed that and we’ve been working on it, so i think we’re gon na be lucky enough, uh, because it’s a process that i believe we got ta.
One of my cmos got that together.
I think we have to share some profits to different institutes to get the educational grants, so we’re hopeful that, with this meeting uh that we’re going over, there will be the last thing that we do and we get the funding.
And then we can really hammer out what we want.
We’ve been working on this for almost five years now you know arizona is where it’s housed where’s the institute.
Is that correct – and you know i think shopsmart has helped the brand a lot with uh the institute.
So yeah, that’s what we work.
We still got the same uh directors and the veteran and everything the same.
You know the guys that do the operation side, so we’re really working really on it.
So we have this meeting that we got to go to washington and you know – and hopefully you know what i want to do is give back from my profit companies to the vets and really what i really want to do.
I put my head around.
If i get the grants, i’m not going to charge anything to the dealership and i’m not going to charge anything to the vets, i’m not i’m giving that away to help our veterans because we have a profit company.
So we don’t care outstanding.
So before i have to go and you go uh, i know you gave out a number before i don’t know.
If you want to do it again, maybe somebody came in late, but how can they find out more about this mind-blowing thing? You just told us about enterprise, it hurts and all this work brandon thanks for pulling that up.
You’re sharp you’re asking me you’re amazing right now.
You know that that’s what i love about you how’s that uh richie.
It’s always fun to to be around you because you’re, a wealth of knowledge and that’s because uh, you always tell me, you’re a technology guy, so you’re on the front, end and you’re here to help the dealers and you’ve given in some great information today.
So we do thank you for your time as always and how’s the weather up there in long island.
It’s raining out of now that would be outside, but it’s pouring i said i don’t want to be inside.
You know brandon, i’m an earth guy i like being outside, because everybody i mean i really smoke cigars.
I smoke like three or four a day.
I’m not! I don’t do it for entertainment, it’s not a nice habit and it’s a disgusting habit really, but i have a habit, but i’m always outside.
For that reason, and i like earth, i, like the trees i like to be around.
That’s why i live out here.
You know so i’m i’m always outside for that reason, i’m more outside than inside yeah.
You know when i actually work my computer and all that outside you know and uh.
My wi-fi is actually better outside, so we got it set up like that.
Purposely because i do all my work outside and i enjoy being outdoors and when you see me inside there’s something wrong either i have a cold and i’m sick or the weather is bad, really raining how’s the weather over there nice.
So it’s partly cloudy so can’t complain too much.
But let me let me get back to my class and we do thank you and, ladies and gentlemen, you see the number that you need to call uh up there on the screen to find out more of this groundbreaking and if you’re listening boy, please let somebody Else at your dealership know because when those numbers start to fall, somebody’s going to have to be held accountable, so richie’s giving you some information, let’s get on to the top of it right now, while we can so richie bello.
Thank you.
As always, it was a pleasure thank you for having me on your show.
God bless.
You have a very great day today and let us know if there’s anything you ever need or only a phone call away, and that goes for a lot of people out there.
Just call me no problem appreciate it richie, and this is brandon hardison as always catch us next week parting you go out and you make it a champion day.
