Don't think the legal issues really matter, I am quite sure if they wanted to they could win a legal battle and keep the car. I think it has more to do with the bad press and not fulfilling their commitment in the eyes of the consumer.

Seems this is an obvious mistake by the dealer. There is nothing to gain by doing this intentionally unless the ISM initiated it without anyones knowledge.

What is the Ebay policy here? Who knows the legal issues? Please comment. Would like to learn more....

Rand Smyth

Before anyone reads the rest of this post, please don't take this as me supporting either side of the story. This is just what I think may have happened at Husker.

the Husker BMW Internet Manager listed the M3 on eBay hoping to find a buyer outside his local area. He accidentally listed it in the wrong part of eBay - that ISM might not have been too familiar with eBay. Mr. Tanisaka became the winning bidder just before Easter weekend (March 20th). The ISM tried to cover things up from his GM, so he worked with a salesmanager. In the meantime, the GM probably took some extra time off to spend the weekend with his family, or he was busy trying to make other business happen. If he knew about it before the weekend, he probably brushed it off as a problem to take care of on Monday (the 24th). Between the 20th and the 24th the ISM and salesmanager did everything they could to either get Mr. Tanisaka to bump up in price or to stall him. Because perception is king, Mr. Tanisaka's perception led him to believe the dealership was trying to weasel out of the deal, so he posted the story on the M3 forum (evening of the 21st). The story spread quick while dealership personnel were working on selling more cars over the weekend or enjoying time with the family. People, from all over, became outraged and began to threaten people at Husker BMW - the mess turned into what we have here now.

Now that I've heard Husker's side of the story I can see how this happened. I can honestly say I don't agree with how they initially handled things, but it sounds like they're trying to do the right thing now; while keeping with regular business practices. I can also understand where Mr. Tanisaka came from, and think he was right to do what he did.

While it would be nice to assume that Husker automotive group is doing the right thing, many dealerships have a bad reputation when it comes to sales. It is a high turnover industry with regard to managers and sales people.

I have worked at automotive dealerships in almost every department, and at numerous marques of vehicles. The way Husker automotive is spinning the issue is exactly what I would expect.

Unfortunately, the time is already upon us where individuals and corporations do not take responsibility for their actions. An employee of BMW of Lincoln posted an Ebay add for the wrong amount, and didn't bother to retract it. I don't think he did it by accident. It makes perfect sense. A highly coveted car up for a low starting bid with no reserve. These cars commonly have a waiting list, and go for more than sticker, which is another reason why dealerships are not trusted. Unfortunately, the car was not highly visible on Ebay because the internet sales guy posted it in the wrong section. So, the entire thing backfired on him, and thus the car was sold for a low price to Mr. Tanisaka.

Even if that was not the story, a guy won an Ebay auction for $60,000. The more the dealership resists selling the vehicle for the price listed, the more negative press the dealership will receive. The business mentality of the dealership doesn't fly real well with the public, who commonly make emotional purchases regarding automotive.

High end automotive customers are also treated differently. When I worked at Porche/Lambo/Lotus if a customer was debating on a vehicle around dinnertime, it was common practice to reserve a table at a resteraunt so the person could go out to dinner on our dollar and think about it. So, flying the guy out to pick up his new car does not exactly ring bells.

This automotive group makes millions, and possibly as a conglomerate, in the billions. Loosing 8-10k on a car purchase is nothing. The best thing they could have done was say yes to begin with, eat the cost, and be done with it. THAT would have been the right thing to do. This isn't rocket science, its selling cars and keeping people happy. One angry high end customer can have a huge negative impact on sales.

The dealership chose the route that is typically seen in automotive. Unfortunately, this didn't work out the way they thought it would. Attempting to post different views of the story, and make themselves look better is just not the way to go about this. The public wants someones head on a plate. Give it to them. The more Husker fights this, the worse it will get.

The worst part is now the attorney for Mr. Tanisaka is having to post that the dealership is now upset for using copywrited material on the forums. Again, this is not the way to make this situation any better. Terms get thrown around like "epic thread," and "thread of the year" only get perpetuated when the dealership tries to lash back.

There are two sides to this story. Unfortunately, not many are interested in the side that includes the dealership.

Tre just out of curiosity what would be your position? Troll sites and post negative comments? I am not trying to flame you but you have to remember most of us here (unlike you) use real names and urls that can be linked to our livelihood. This has been a touchy subject for all those involved directly and indirectly. I am actually ashamed to be calling you out on this and even acknowledge your "insightful" posts but I think it would be very "G" of you to state your position and what you hope to gain by visiting dealer refresh? Is that asking too much?
thanks in advance for your reply.......

Dude,

You don't know which way to go on this, do you? I thought I'd give your blog another try but it's pretty weak.

Your handling of everything from the hysteria; to the video; to taking down the video; to supporting the bidder; to kissing up to the dealership - I don't know - it's just all so.... weak.

If you're a blogger with a blog that has a philosophy - stake out a position and stick with it.

If you're trying to report on things - do that well.

But do something one way or the other - not just flip and flop.

You probably won't post this either. hahaha

Tre

According to the buyer's lawyer, the auction states that payment is due within 7 days is displayed twice, and 72 hours is displayed once.

Thanks Sean. I think you misinterpreted the intentions here. Dealer Refresh is simply posting a statement from Husker BMW. It is not defending Husker BMW.

You are absolutely right though: perception is everything!

Thanks for pointing that out Blaine. Regardless of the varying time-constraints, the auction ended on March 20th and Husker BMW has given the winning bidder till March 31st to finish things up. It sounds as though there was an agreement made between both parties on that closing date.

If "standing up" means continuing with the "72 hour" statement, then I'm shocked by this forum and its members. Does this industry not understand the very basic statement that "one's perception is one's reality?" Thanking Husker for posting something that has already been displayed elsewhere and giving a statement that says you're 100% behind them is continuing to give a negative light on your industry to those you hope to make money from. You are continuing to erode our perception.

To the meat of the rebuttal: the auction also clearly states, (in two places), that the buyer has "7 days" to complete the purchase. And since when does time not stop while there is a dispute over how to move forward? The Husker group clearly stated at first they would only sell the car "with conditions" until the buyer sought representation from a lawyer. The clock stopped right there and could not continue until an agreement was made. An agreement that didn't happen until this past week.

The Husker group isn't being generous with their time extensions -- they initally delayed the proceedings and now they're looking for sympathy by extending a timeframe that hasn't even expired!

I just looked at the eBay listing for this automobile. At the bottom of the page it mentions that full payment is required within 7 days of auction close, not 72 hours.

Good for Husker. Sounds like they did all the right things. They are credit to car dealers everywhere for taking care of this like gentlemen.
 
Props to Alex and Jeff on this one. They did all of us a great service in showing how we can all learn together.

Well done Jeff and Alex. These past two days you have shown many the benefits and power of the Internet. Thank you for having the courage to follow through. It also shows us the a path to policing our industry and making us stronger and better for it, the consumers will notice.

Well done also to Husker (HAG) for standing tall, setting a great example of “Reputation Management.” and doing the right thing. This is an example we should all remember in our own areas of influence as a process to adhere to.

They should be proud to display this interaction on their web site as they have earned the right to let the public know they take their commitment to excellence to heart and not just talk about it.

I am not sure this video embed link will show up... But, if it does, imagine the reputation management implications!

Send your own ElfYourself eCards

I've been reading this blog for months. I can't resist commenting on this one.

I was really glad to see GIlbert's post. This was a real PR opportunity lost. There have been many similar examples in other industries. Some companies saw it as an opportunity and got all kinds of PR worth millions.

Toyota did a good job a couple three years ago. They came right out, admitted they'd made a mistake in real human language, not filtered corporate PR crap. They apologized and got tons of kudos from the online community.

You may remember the Tylenol scare. What a horrible thing for people to die from using a tampered product. Tylenol faced it head on , did the right thing as best could be done. They're still a trusted product.

There are lots of other examples good and bad over the years.

So many things are changing in today's world. There's so much transparency so much conversation and openness. That sounds like a great world, as long as you can see mistakes as an opportunity.

Thanks for this site, I've enjoyed reading it and hope I deserve your welcome in leaving my 2 cents.

Cathy

Looks like the car has been delivered according to the thread on the bmw site

All the comments and postings about dealers needing to protect their online and traditional reputations are on the money. With the growth of automotive social networks dealers really need to consider the negative consequences of their activities.

> I was thinking of putting photos of dealership personnel up on
> our website, but not now. Who wants to be turned into a puppet?

I agree.

In case there is any confusion, there were two videos; the Husker
GM's own "Welcome" video on their website and the YouTube
parody.

There is something to be learned from the GM's video. His
choice of hair style, over-gel'd & spiked, became another
lightning rod, driving further comments & parodies. Too
stereotypical, especially for his age. It might have been okay
for a Scion GM in an urban, hip-hop market. BMW? No. Corn
Belt? No.

Husker pulled the GM's video from their website early in the
chronology, but by that time, it had already Jumped the Shark.

I was thinking of putting photos of dealership personnel up on our website, but not now. Who wants to be turned into a puppet?

Wow... this one has got around eh? Mistake #1 - Never, ever, ever, ever forget to set a reserve.

Thanks for blogging this Jeffrey... good stuff.

Quotes are from other posters here; my observations and
follow-up questions are in-lined and prefixed with "::"

"winner was contacted, by email, with the the statement
"Congratulations"

:: I believe that this is an automated eBay feature and happens
:: essentially, instantaneously. It certainly does not help Husker.

"Then that email was followed by a second email and phone call
stating the listing was an error"

:: And an alledged boast that eBay will side with Husker because
:: they are part of a multi-billion business group. Was mgt aware?
:: Apparently, not yet.

"... it happened and we are all learning from it, not matter what
side of the story has more weight to it."

:: That's why I'm here. I'm thinking of old nautical charts where
:: cartographers noted, "There Be Dragons Here." Those cautions
seem appropriate for eBay and internet sales.

"I think that is a setup fault in the eBay listing vendor they're working with."

"It only takes 1 person, 1 posting to really screw things up."

:: I agree. It seems that VT allows their GMs the discretion to
:: choose if/how to run their eBay and internet stores.

:: The post by the BMWCCA President in Lincoln was enlightening.
:: After visiting the store and chatting with those involved, his
:: (calming) post implies that their internet guy was operating
:: both solo and unsupervised - and that he initally tried to hide
:: the auction problem(s) from mgt.
::
:: I am wondering: How well did mgt truly know their employee?
:: Did mgt realize the potential risk(s)? How diligently did mgt
:: select and train for this role? All rhetorical questions.
:: Specific answers are not expected, general discussion is
:: appreciated.

:: I am not suggesting that posting on eBay requires the rigor and
:: procedures of USAF Missle Lauch Officer teams, but an eBay
:: rep that is operating solo has fewer checks & balances than the
:: typical retail sale. Maybe I'm reaching too far with this next
:: point - casino security is exceptionally wary of possible
:: undisclosed relationships between dealers and cheats. Should
:: mgt consider more scrutiny of their internet auction practices?

:: In the apparent chronology, lawyers for both participants are
:: engaged now. They agree to close the deal at the auction terms
:: and instruct the buyer to contact the GM and pay the deposit.
:: It is alledged that the GM refused the deposit. If true, boy
:: did Fil ever miss an opportunity. I can imagine what he was
:: going thru, but that alledged action strikes me as having been
:: the tipping point - the alledged moment when the campfire
:: began to grow.

:: If either party recorded that call and the lawyers find it during
:: discovery ... game over for whoever is lying. Given that NE is
:: the home of many call centers, I will guess that single-party
:: notification rules allow for permissive recording (by Husker).

:: Caution; changing topics slightly ...
::
:: It seems their eBay sales guy also has two MySpace pages,
:: one of which could pose an ethics challenge for an Eagle
:: Scout. He seems ripe for a Honey Pot attack. i.e. an
:: ESPECIALLY knowledgeable customer [cheat] could have
:: targeted him for hardball negotiating [extortion] to keep this
:: matter away from his wife. If his wife didn't know and approve
:: of his MySpace friends, "Sorry," is unlikely to be satisfactory.
::
:: It is unlikely that mgt will ever know if a trusted, solo internet
:: rep is being extorted to choose between his wife and family
:: vs. the possible loss of paycheck. If he takes the high road and
:: reports it to mgt; and mgt then choose to engage LE, it wil be
:: virtually impossible to keep it from the media. Few wives will
:: hang around for public humiliation.

:: In this stream of conciousness post, it seems to me that
:: internet sales reps are especially vulnerable to extortion.
:: Everything needed to assess their possible vulnerability is
:: available to anyone on internet. And that assessment can be
:: accomplished siliently and anonymously from a distance. I
:: wonder if mgt knew he had a MySpace page?
::
:: MySpace is just the tip of the iceberg. Many states have
:: websites that allow broad searching of criminal histories.
:: Yup, There Be Dragons Here.

:: The various eBay and internet listing services and sales training
:: vendors are almost certainly building Powerpoint decks and
:: preparing to storm the gates with packaged "solutions" for these
:: matters.

"I'd be hiring one of the brightest marketing firms in the business and figure out how to someway turn this bad publicity into a
something positive, it would have to be edgy...but I think it could
be done."

:: I agree, but think that the Honest-Abe approach would be more
:: effective in Corn Country and the Rust Bowl. Edgy would
:: certainly be effective for large metro/urban markets.

Gilbert -

You're spot on w/your comment about an immediate reaction - looks like they missed the window of opportunity to simply fess up, take ownership (and the lumps) and embrace their new-found viral "celebrity" status.

Jeff and Alex - nicely handled on your part.

Seems to me the best thing to do in a situation like this is to take the hit and move on. The dealer screwed up and they maybe legally able to avoid not delivering the car, but it is not worth the bad viral mojo that they are getting online. If Nixon would of copped about Watergate and Clinton about Monica, they wouldn't of taken the hits they did.
 
It would of been great PR for them to fess up and made a commercial with the ebay customer about how honest they are and live up to their  commitments. Instead they are facing the heat.

A MUST SEE for those that don't get it.

Login to view embedded media View: http://www.youtube.com/watch?v=4ITE7ITSR6M&


Step by step, the One of the most compelling, educational, well constructed ___sucks.com videos I have ever seen.

It's critical that management must recognize "the new world order". Customer service is now deeply connected to Reputation Management.

BE PROACTIVE. Doctors that are sued the least are the ones with the best bed side manner. And when the wheels fall off the car... bend over backwards right upfront! The 1st loss is always the least loss.

Joe

There are internet wildfires going on all over the place. Old school operators are getting tazered by angry customers that now have a method to vent.

WASHINGTON, D.C. — Ricart Automotive has agreed to drop a lawsuit it filed against an angry customer who created two anti-Ricart Web sites to log customer complaints about the dealership. Ricart Automotive Agrees to Settle Suit Against Web Critic - Public Citizen

Ricart has spent $100k in legal fees to take down 2 sites and this Ohio State University graduate student has made Ricart public enemy #1. See his site at www.columbusconsumer.com, its amazing.

Joe