Breaking Free from the Auction Trap
When the market is strong, the herd mentality feels harmless...even helpful. Everone's doing well, so why rock the boat? but the real test of a dealership's strength comes when things get hard.
Thereâs a quote from Martin Luther King Jr. that hits hard here:
"The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy."
Replace âmanâ with âdealerâ or âoperator,â and itâs a perfect fit for our business. In good times, the auction-driven model feels safe, simple, and logical. It worksâŚuntil it doesnât. And when it stops working, it doesnât just wobble. It collapses.
Twenty years ago, auctions were a toolâŚa disposal facility. A place to offload problem units or move inventory quickly when local options were exhausted. Today? Auctions have become the backbone of wholesale operations for most dealers.
How did we get here?
We let the herd lead us.
Over the last two decades, auctions didnât just growâŚ.they convinced us to depend on them. Dealers were told they didnât need on-staff experts or strong dealer-to-dealer networks. Why pay for in-house talent when auctions could handle it all?
Then came the valuation toolsâŚvAuto for example, owned by Cox (the same company behind Manheim).Franchise dealers were handed a system to âsimplifyâ pricing. Independent dealers got cheaper versions of the same promise.
The result? Everyone started making decisions based on the same tools, the same data, and the same assumptions presented by âŚ.an AUCTION
At the same time, Auctions pushed a new narrative⌠You canât trust each other. You can only trust the auctions.
Dealers stopped building relationships. Wholesale expertise disappeared from stores. Even dealer schools like NADA and Northwood ignored it, leaving the next generation of operators without the skills or mindset to manage wholesale outside the auction system.
How can wholesale strategy not even be part of those curriculums? Itâs mind-boggling
Hereâs the problem⌠The herd is heading off a cliff.
When the market tightensâŚand it willâŚthe auction lanes will become a bloodbath. Prices will collapse as inventory floods in. Dealers relying on auctions will scramble to cut losses. Most wonât have the staff, the networks, or the strategies to handle wholesale outside the system.
News flashâŚThe Feeâs will go up then. You wonât have a choice.
What happens then?
For many, it will be game over.
The good news? The solution isnât about reinventing the wheel. Itâs about returning to current versions of what worked in the past
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Rebuild Dealer-to-Dealer Relationships: Trust and collaboration arenât just buzzwordsâŚtheyâre lifelines. Reconnect with local and regional dealers. Build relationships that create win-win deals. Make wholesale personal again.
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Dominate Locally: Stop relying on auction lanes to solve your problems. Own your market. Become the go-to dealerâŚnot just for customers, but for other dealers looking for solutions.
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Nurture Your Existing Clients: Focus on the people who already know, like and trust youâŚyour existing customers. Show them their loyalty matters. Build relationships that last beyond a single sale.
Nurture > Conquest -
Empower Your Sales Team: Help your salespeople build brands within your brand. Encourage them to become icons in their own right. When the people behind the dealership become trusted names in the community, the store thrives.
This isnât just about survivingâŚitâs about thriving.
The dealers who succeed when the market shifts wonât be the ones following the herd. Theyâll be the ones who have the courage to lead.
When itâs easy⌠itâs easy. But what happens when itâs not?
"The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy."
Weâre heading into a time of change and likely a challenge. Who knows what is coming but one thing is certainâŚ.The auctions wonât save youâŚYou Need To Save YouâŚ. The dealers who thrive will be the ones who take back control, invest in relationships, and own their markets.
The question is: Are you ready to stand where it counts?
Letâs talk about how to bring wholesale back into your control. Reply to this email or visit bobmanor.com to get started.
And if this message resonated with you, share it with someone who needs to hear it. Together, we can bring wholesale back to what it should be⌠personal, profitable, and in your control.
Thatâs all for now
See you next Tuesday đ
About Bob Manor
Bob Manor is the founder of South Ontario Auto Remarketing, Can-Am Dealer Services, and is Co-Founder of Auto Auction Review. Bob is also the creator of the Freedom Formula. With over 30 years of experience in the car dealership world, Bob specializes in wholesale, dealer services, and personal branding. His mission is to help dealership professionals take control of their careers, build resilient personal brands, and achieve lasting freedom in business and life.
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