For years, the narrative has been clear: "You can't trust other dealers." This message, perpetuated by major auction houses, has driven a wedge between us, leading to a reliance on their platforms and eroding the direct relationships that once defined our industry.
Recent developments highlight a shift. Cars Commerce's acquisition of DealerClubâŚa start-up that is a reputation-based, dealer-to-dealer digital wholesale auction platformâŚsignals a move towards restoring trust among dealers. DealerClub's model emphasizes transparency through dealer ratings, aiming to facilitate trustworthy transactions without traditional auction intermediaries.
Similarly, platforms like Auto Auction Review, co-founded by my partner Dane Hulse and me, strive to provide dealers with a space to share honest reviews about their auction experiences. Despite significant dealer sign-ups, many hesitate to leave reviews, fearing backlash from auctions. This reluctance underscores the deep-seated mistrust that has been cultivated over time.
Consider this: The National Auto Auction Association (NAAA) reports over 7 million units sold across 340 registered auctions in 2023.
Yet, if you examine your last 100 auction transactions, chances are you've interacted with only 20-30 different buyers or sellers. With approximately 18,000 dealers nationwide, are we to believe that trust is so scarce that we can't establish direct trading relationships?
The substantial investments by companies like Cars CommerceâŚ.reportedly over $20 million upfront for DealerClub, with significant performance-based incentivesâŚindicate a recognition of systemic inefficiencies and a desire to address the dissatisfaction many dealers feel towards traditional auction houses.
It's time to reclaim the trust that has been systematically undermined. While platforms like DealerClub offer innovative solutions by emphasizing dealer ratings and fostering a sense of accountability, they still operate as intermediaries. The true power lies in rebuilding direct dealer-to-dealer relationships.
Start small:
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Identify Local Partners: Reach out to neighboring dealerships. Begin with a handfulâŚperhaps tenâŚand explore opportunities for direct trades.
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Establish Clear Communication: Set transparent terms and expectations to ensure mutually beneficial transactions.
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Leverage Technology: Utilize digital tools to facilitate these relationships, but keep the focus on direct interaction rather than relying solely on third-party platforms.
By taking these steps, we can reduce dependence on traditional auctions and external platforms, keeping profits within our community and fostering a culture of trust and collaboration.
Final Thought
The landscape is shifting. Companies like Cars Commerce are betting big on models that emphasize trust and reputation among dealers. However, we don't need to wait for external solutions to dictate how we operate. By proactively rebuilding direct relationships, we can create a more efficient, trustworthy, and profitable ecosystem.
Let's challenge the narrative that we can't trust each other. The real question is, do we need intermediaries to facilitate trust, or can we rebuild it ourselves?
If any of this made sense to you here are 2 ways to take action
1. Start by signing up for Auto Auction Review today and leave a reviewâŚitâs free, easy and impactful. Be part of a growing movement to bring transparency and accountability to wholesale auctions. Your voice matters, and itâs time for dealers to take the lead.
2. Dip your toe into direct wholesale. Respond to this message, and Iâll help you get started. My Dealer Services Company has nearly 1,000 registered dealers. I can facilitate introductions, create connections, and help you start building trust within a community of like-minded operators.
Both are simple, free, and steps toward reclaiming control of wholesale. Letâs lead the change together.
That's all for now
See you next Tuesday đ
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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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