Are You Maximizing the Opportunity Each Deal Offers Your Dealership?

Are You Maximizing the Opportunity Each Deal Offers Your Dealership?

Steve Smythe's Headshot

Camarillo, Calif., March 22, 2021

The role of the dealer’s sales executives in a customer’s retail journey – and the technology solutions available to you – continue to be vital to establishing the overall credibility of the dealership – and to maximize a dealer’s sales volume and gross margin potential.

Outlining possible customer deal scenarios is an integral part of the buying experience. Desking solutions still matter, but there are other factors that must be taken into account to elevate the buying experience.

It’s been a year since we launched our current desking solution in two new product module packages, mDesking 360 and mDrive SYNC, the latter designed to form a virtual handshake to other solution-providers’ technologies. I have been curious to get specific customer feedback to understand how these product solutions have been embraced by our clients, as well as to assess if there is room to enhance the solutions even more.

I tasked Robert Mancha, our Director of Strategic Relationships, who has more than 10 years of experience as a sales executive with us, to assist some of our clients with in-field coaching as part of the onboarding process. I asked Robert to report back some of his observations on how the products are being perceived – as well as used. Below, I will share some of Robert’s observations as well as provide commentary and my perspective.

Robert’s recent trip took him to the Chicago metro area, where he visited 10 dealerships during the course of one work-week. He worked with more than 30 dealership representatives that included owners, managing partners, general managers, general sales managers, desk managers and finance managers.

Today’s dealerships are being bombarded with technology to grow sales and profitability. There are many new players in the space, all vying for their share of the automotive retailing market. This includes DMS systems, CRM solutions, inventory management solutions and stand-alone desking solutions, to mention a few. Robert found himself looking at side-by-side comparisons of Market Scan’s mDesking 360 functionality compared to those of several other desking solutions. He recognized the challenge dealerships face in trying to understand what makes one desking solution better than another. Visiting the dealerships and reviewing their current sales processes made it clear to Robert what it is that signifies a clear distinction between Market Scan’s solutions and all others.

Robert watched managers produce deals in multiple competitor offerings throughout his week-long trip, and he observed what was a common theme: The focus of every deal constructed within a competitive offering was isolated to a single lender, and in many cases, one program, one term with either retail OR lease selected. This single-lens approach generally seemed to make sense for those sales managers that Robert visited; they were simply unaware of other, potentially much more profitable opportunities at the same deal structure. The fact is that the captive lender is strongest only 45-50% of the time but, if the existing desking solution does not display those better scenarios, sales and profit will be missed. A solution that displays the range of all available lenders’ offerings on every deal, enables desk and finance managers to see better, more profitable deal structures for every conceivable deal scenario – as well as propose even better options for the customers.

Without getting into the weeds of all the parameters and details needed to construct scientifically-perfect deal scenarios, which consider all pertinent data points, Robert made a notable conclusion after sitting through hundreds of deal structures during the course of one week: The vast percentage of deals that had been accepted by the dealership management, on average, missed hundreds of dollars of available profit at the accepted payment and down stroke! In a big store, which might retail 250+ vehicles monthly, the net cost could be $50,000-$100,000 in missed gross – considerably more than that same dealership enjoys in floorplan credits.

All of Market Scan’s solutions, whether mDesking 360 or our mScanAPI which powers other technologies, focus on the profitability of the structure. In other words, you determine “how” you want to sell the vehicle by setting the deal structure in just a few clicks. All that’s left to reveal the most profitable offerings, from your available lenders, is to select “Calculate”.

Your management team instantly gains access to the best programs for every one of your available lenders, along with the analytics for optimal application. The most profitable and competitive scenarios for every term available and deal type selected (lease/retail/balloon/one-pay) are displayed every time.

Market Scan’s systems also correctly applies all standard/automatic (VIN-specific) incentives, and provides a preview of every conditional offer for any given consumer (zip code specific), with all federal, state, county, local and municipal taxation rules and registration fees for all 50 states properly applied. This helps minimize incentive errors and audit exposure.

Additionally, because we also ‘power’ many of the online and digital retailing technology providers, our systems help you and your team quote more competitive, accurate and consistent payments all along the consumer’s buying journey.

As a former dealer principal, the take away for me is simple: In a time where digital retailing and online presence plays an increasingly important part in any dealer’s retailing efforts, giving your sales team access to the best information, data and calculations will help secure your future.

If you would like to discuss this at greater depth, please feel free to reach out to me directly at 805.823.4256 or ssmythe@marketscan.com. Thanks for stopping by!

Best Regards,

Stephen Smythe, Chief Executive Officer
at Market Scan Information Systems

Steve joined Market Scan as its CEO in 2009 after 30 years in the retail automobile business, bringing extensive knowledge of the industry and what it takes to sell and lease automobiles. During his career, he spent 20 years as a Dealer Principal/Owner, operating multiple dealerships in major U.S. metro markets including Los Angeles and Washington, D.C. Among the brands his dealerships represented were Mercedes Benz, Toyota, Volvo, Bentley, Rolls-Royce and Acura.

After 12 years as Market Scan’s CEO, the University of South Florida alumnus has decided to spend more time with his family (and grandkids) and has returned to his old stomping grounds in the Sunshine State. Steve will continue to work with the team at Market Scan in a near full-time capacity role as “Chief Strategic Advisor”.

For additional information, articles or interviews please contact:
Market Scan at info@marketscan.com

Market Scan was founded in 1988 by Father-Son team Russell and Rusty West with a single vision: build a world-class desking platform to fit every customer’s financing and leasing needs like a driving glove while returning the highest profit margin possible to the dealership.

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© 2019 All rights reserved.
Market Scan Information Systems, Inc.

 

Changing Consumer Behavior Is Stress Testing All Stakeholders’ Business Practices

Changing Consumer Behavior Is Stress Testing All Stakeholders’ Business Practices

AFSA (American Financial Services Association) hosts a variety of webinars throughout the year to educate members on some of the most pressing issues that face the financial services industry. The webinars are designed to provide information that will allow AFSA members to more effectively design, develop and implement strategies to ensure their company’s success.

In this webinar, Jenn Reid, Market Scan’s Vice President of Strategic Partnerships, discusses the obstacles and uncertainty the automotive industry has faced over the last 12 months, from the pandemic itself, the rush to implement digital retailing solutions and accommodating the consumer through new and redefined dealership best practices.

Jenn highlights how digital retailing is challenging all stake holders involved – manufacturers, retailers and especially lenders – to provide consumers a consistent experience across the journey, including information that can be used to transact online or in the showroom, which will require engagement and strategies executed much earlier in the process.

For additional information, articles or interviews please contact:
Market Scan at info@marketscan.com

Market Scan was founded in 1988 by Father-Son team Russell and Rusty West with a single vision: build a world-class desking platform to fit every customer’s financing and leasing needs like a driving glove while returning the highest profit margin possible to the dealership.

Market Scan Vertical Logo - White

© 2019 All rights reserved.
Market Scan Information Systems, Inc.

 

Market Scan Consumer Survey Emphasizes the Importance of Offering Consistent Payment Quotes Digitally and in the Sales Showroom

Market Scan Consumer Survey Emphasizes the Importance of Offering Consistent Payment Quotes Digitally and in the Sales Showroom

For Immediate Release

Consumer interest drops dramatically when showroom offers are just $50 different from what consumer was quoted online

Camarillo, Calif., March 18, 2021 – Market Scan Information Systems, Inc., an industry-leading automotive SaaS / PaaS solutions and data provider, today announced results from a recent consumer survey it completed focused on consumer behavior associated with automotive digital retailing. The survey highlights frustrations, expectations and provides valuable insight on how sales opportunities are lost when payment offers online differ from payments presented at a dealer’s showroom.

Market Scan commissioned an online survey during January, where it polled roughly 200 automotive shoppers on their pain points associated with the digital retailing process. The survey also took a pulse check on how payments and offers are being presented to consumers today.

Price and payment negotiation remain among the most important aspects of the car shopping experience for consumers. The survey showed that nearly half of all respondents (45%) say price and payments matter to them the most.

The disconnect between shopping online and the experience at a dealer showroom remains a major headache for many. In fact, when it comes to online shopping, 49% said they need to restart the entire process when they arrive at the dealership after doing all their homework online, ahead of time. Furthermore, 43% are frustrated that there are still discrepancies between the online offer, and the one they are presented with at the dealership.

Why does this matter? 21% of shoppers say they begin to lose trust in their dealer when the discrepancy between the online offer and showroom offer is $50 or less per month. In parallel, 21% said they will actually walk away from the deal if the discrepancy is $50 or less per month and 48% said they will walk if the difference is less than $75 per month.

Dealers should recognize that this does not mean technology will force a race to the bottom. In fact, consumers said they may be willing to pay a little extra for the convenience of a true online shopping experience. Just over a third (34%) said they would sacrifice a little negotiating power to offset additional costs required for an ideal online shopping process that transitions seamlessly to the showroom experience.

“Prompted by COVID-19, digital retailing proficiency has become a must and an integral part of automotive retailing”, said Rusty West, President and CEO of Market Scan. “Dealers now must have an omni-channel presence and it is imperative that they provide consumers payment transparency and consistency throughout the entire journey. The survey results emphasize the importance of providing a scientifically perfect solution for any conceivable automotive transaction. When science, technology, data and automotive insight are applied correctly, it enables manufacturers, lenders, and retailers to provide consumers a frictionless, modern retailing experience – both online and in the dealer sales showrooms. And when that happens, everyone wins.”

To learn more about Market Scan, visit www.marketscan.com

Press Contact:

John Sternal
Merit Mile
jsternal@meritmile.com
O – 561-362-8888
C – 954-592-1201

 

About Market Scan

Market Scan is a leading provider of technology and analytical solutions for the automotive industry.  The company’s proprietary technology and analytics mine value from vast amounts of data to enable efficient, frictionless and scientifically accurate transactions.  Market Scan’s solutions facilitate easier, more complete, competitive and accurate results, enabling automotive dealers, lenders and manufacturers and technology companies to provide better products, experiences and profitability to serve customers and gain market share.  For more information, call 800-658-7226 or go to www.marketscan.com.

 

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For additional information, articles or interviews please contact:
Market Scan at info@marketscan.com

Market Scan was founded in 1988 by Father-Son team Russell and Rusty West with a single vision: build a world-class desking platform to fit every customer’s financing and leasing needs like a driving glove while returning the highest profit margin possible to the dealership.

Market Scan Vertical Logo - White

© 2019 All rights reserved.
Market Scan Information Systems, Inc.