I’ve just had a quick look at this post and Autoleague is doing all the right things to position itself as a dealer group of the future .
With $3bn in turnover the group has joined the top 10 of the share of wallet club in Australia and have set the platform to move from the tail wagging the dog to the dog wagging its own tail .
Just reflecting on the last 10 years a few things have become much clearer :
1) the internet won’t sell cars on its own , but it will help to engage customers and reduce transaction costs , so that’s where the money and effort needs to be spent
2) car dealers still sell cars , whilst product choice and residuals still exist , dealers have an important role to play . The service stops where the profit finishes , so brands that don’t offer sufficient profit participation for dealers will struggle to compete .
3) future profits is all about cost out strategies , people can’t remain 70% of gross and rent can’t eclipse 10% . More gross per square metre or “ rent free gross “ will become the paradigm . As people costs are replaced technology , with all non customer facing roles being outsourced ( lower cost through volume and expertise ) or replaced by technology , then eliminating wasted real estate on stock display / storage will increase rent free gross per transaction .
4) customer repurchase will legitimately move from late cycle ( showrooms ) to early cycle ( service ) . For years it’s achieved high levels of lip service , but when push comes to shove , 95% of cars sold to late cycle buyers on Saturday or Sunday by salespeople that are too busy to deliver service . Genuine cultures of CRM leads , appointments 7 days a week and customer “ game planning “ will occur , but the nature of the beast needs to change . Todays sales people are in the wrong place at the wrong time to do this work effectively . This work needs to be done by professional appointment creators , armed with positive equity calculations , pre approved finance positions and customer communication built from constant communication. Unfortunately most showrooms are event driven , not process driven , so are I’ll equipped to sell cars every day .
This is where the dog starts wagging it’s own tail .
When the customer becomes the destination and selling what they want , rather than what you sell , on terms and conditions that you have worked together on since last purchased , then you’ve arrived .
This can only be achieved effectively by those that control “ share of wallet “ nationally or geographically, at $5bn the dog definitely can wag its tail .
At this size you can offer choice of brand and finance terms to meet budgets , but more importantly you can invest in your customers .
Investing in customers , in the past has been like Pharoahs investing in pyramids , you don’t build a showroom for your customers, you build it for your competitors. Look mines better than yours .
Elevate the customer above vanity and you will find the profit
As we close out the 23/24 financial year, we celebrate our achievements and look forward to the future.
Our CEO, Dan Kawai, says: "FY23/24 marked a year of strategic growth and investment in our people and technology. We now stand as a key player in an evolving industry, ready to seize opportunities and tackle the challenges FY24/25 will bring.”
Autoleague extends a heartfelt thanks to our employees and trusted partners for the crucial role they played in making this year a success.
#EOFY #StrategicGrowth #Innovation #Leadership #Autoleague
Head of Media @ Next.io | Extensive international marketing & journalism experience | Tech industry tenure
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