I fired Autotrader earlier this year due to cost/lead & cost/sale. They got back in the dealership a few months later, hat in hand. Now, at my new dealership, we are in a premium agreement paying over $4000/mo for roughly 45 contacts and 2 sales in November that lost $650. That is really diffilcult to say no to, but obviously, I am cutting them back to the lowest level if I don't cut them altogether. They are the 600 pound gorilla acting like they have the run of the jungle, but they don't. There are plenty of other lead providers out there, including eBay. If you are not counting on eBay as a lead provider, you're missing the boat. Autotrader will spout numbers as to how many more cars are sold on Autotrader than eBay, but what they fail to realize/mention is cost/lead and cost/sold is substantially lower, AND you're exposed to an Internationaly market (if you so choose). $4,000? Let me list 400 cars on eBay and really make some sales.

i would be on autotraders side on this one. These guys are one of the most popular out there and they do get business for most dealerships. More and more DMS systems are adding the upload to autotrader feature so that the dealer saves time.

I know this post has been up for a while, and was actually circulated around the office a couple months ago. Not from the upper level management, but I assure you it eventually reached them, including Chip Perry. Yes, I work for Autotrader.com and have for years. This may be shocking to hear, but even from an inside perspective, I do feel we are getting ahead of ourselves. Change is part of any company, especially a large company, and as sales reps we've had to adjust accordingly over the years. Lately it seems like the company is getting unbelievably greedy. If we go a week these days without some sort of change we start to wonder what's wrong. Changes are on two fronts: for you the dealers and for us the sales reps. Pricing, as you know and mentioned, is always increasing based on added features. Compensation on our end is also changing, sometimes directly and sometimes indirectly, but the bottom line is that someone has created a monster. The company is losing great sales reps, some like myself who have been with Autotrader.com for several years. Top producers are being shafted on a monthly basis. I don't want this to seem like a disgruntled employee ranting (after all, I am still working there), but rather an illustration of how the company is changing on all levels. Autotrader.com is in the business like everyone else to make money, and believe me we are. The double-edged sword analogy holds true here. Unfortunately for you the dealer, Autotrader.com is still the 800-pound gorilla in the marketplace, and sometimes you just have to bite the bullet and do what the 800-pound gorilla says. On the plus side that 800-pound gorilla helps to sell more cars than the closest 5 competitors combined and is still extremely cost-effective. I'm keeping this anonymous for obvious reasons, but know that some reps do put your best interests first, before company profits which we're seeing less of, and some of us do stand up for you.

To AutoTrader or NOT to AutoTrader, that is the question...

I've had pretty good success with them. Especially phone ups. I've worked for a much larger dealership than I do now and was on their $4200 per month (if I recall the exact number) and received tons of calls and pretty many leads. The problem is that all of my other providers combined are less than $4200 per month.

The dealership I'm at now sells 30 to 40 cars per month (total) so we're on a $1400 plan. I REALLY hate it when I do a search and get page after page after page of my competitors cars before I get to ONE of my cars. Somehow I still get leads or phone calls from them on occassion and I've figured out how to turn about 20-30% of these into sales but I've kind of come to the conclusion that you either go BIG or go home and I'm seriously considering going home. We have a GREAT REP and they are constantly calling me to offer me Cincinnati Red's baseball tickets, giving me advice, even offering to come out and put comments on all of my cars for me (I have a decent CRM tool from ProMax that does this FOR me so about 95% of my cars have some sort of comment and 98% have pictures per their advice).

I've also had great luck with AutoByTel (who only charges when I get a lead), Cars.com and IMotors leads and they only get paid for performance (an actual lead) and are pretty quick to credit me if I have a "bad" lead with both a bogus number AND bogus email.

Our owner has been burned in the past and doesn't like long-term contracts (he's currently paying more than he should for several services just to have the advantage to cancel they don't perform). I didn't like this at first but it makes it pretty easy to dump someone when they don't work out!

I'm still debating on AutoTrader but my opinion is you have to go big or go home and I don't like either alternative (unfortunately AutoTrader is a powerhoue that most people know about and use to buy a car) and they have GREAT commercials on TV so for now, I'm sucking it up at $1400 per month. Hopefully I'll keep selling more cars (I just hired someone who hasn't sold cars in the past and he sold his first car TODAY!) and I'm training someone who has 3 years experience in the car biz at our second store. Eventually I hope to get out to our third store (its about 30 miles from "my" store) and work with their GM who is doing a pretty good job on his own working the internet. Hopefully I'll be able to justify "top billing" in a month or two so I can fully leverage AutoTrader.

I agree that the Auto Trader pricing is getting out of hand. We have to admit that the internet is changing the way we do business.....Period!
We live in a different world folks, it is evolving and we must evolve with it. Customers now have more info at their fingertips than most salespeople. Pricing, comparisons, ratings, etc. The list goes on. I find it hard to swallow that we are expected to shorten our deals and at the same time lengthen our expense reports.
We as dealers are allowing it and we are creating our own demons. Do I HAVE to accept the increases, ........NO! Must I evolve, ....yes, but it is time for Auto Trader and other web based companies to evolve with us.

Tim Hembree
General Manager
Universal Auto Mall

This is interesting. We just experienced a 30% rate hike from Auto Trader in the Philadelphia Market in the Summer of 2005. I immediately started the cancellation process and July should have been the last month. After recieving an invoice for August I called and was informed that the cancellation letter had not been received...hmm?
I faxed the original copy of the letter as well as email dialogue with my local rep to the main office and the cancellation went through. In the meantime the local rep realised that he was not going to be able to convince me as to why Auto Trader was a good company for me to use, so he went around me and to the owner and the owner resigned for a non-premium package. The famous Auto Trader Plan B. (By the way when a vendor ignores my decisions and goes around me and to the owner I see red...Afterall, I was hired to sell more cars more cost effectively. This is my area of expertise not the owners. No offense Jr... It comes out of my Internet budget and ultimately effects my income.)

Now don't get me wrong here. Auto Trader has been extremely effective at other stores I've managed in the past, but it just doesn't work in my current stores. The list of reasons could start a lenghty converstaion.
The bottom line is Auto Trader is costing me about $300 per lead, and even if we do sell one or two cars I personally would rather spend the money on more cost effective marketing and drive more people to my websites.
I have great success with Automotive.com in this area ( West Chester, PA) and I think that Automotive.com does a better job of having an online presence.... By the way Automotive.com is only $500 per roof for their premium package.

Before reading this article I sent another email to the owner requesting he review the Auto Trader program with me again. I hope I can make them go away once and for all.

While I'm Here Jeff;

Certainly, no one likes price hikes on products and services. However, the industry is headed in the direction of AutoTrader (would your experience in ISD Mgmt. have you figure so), and "up selling" is going to be the money maker of the future.

I cannot tell you how many dealer clients I have spoken with who have no earthly idea how to profit from their exploits in Internet Sales. But, most of these dealers are even getting hefty returns and numbers from their AutoTrader products.

Though, I am no proponent of any particular brand but the best one, I do believe you can get ready to hold your chair tighter when these representatives from the internet marketing companies hit your door from now on. In every industry sector (except automotive, as in dealers- imagine that), enterprises have consolidated in order to maximize profits. Usually, the first step is to cut overhead (flowery for lay off a few dozen folks, at least) and raise the prices of their products.

Don't be surprised by the move by AutoTrader. The name of the game is still Supply and DEMAND!

Prosperity be yours,

D. Ramonte Rawls, President
Auto Buyer Consultants
770.507.5733 Office
404.403.7476 Mobile

EA: DRawls@AutoBuyerConsultants.net
WA: www.AutoBuyerConsultants.net
"The Future of the Largest Automotive Market Place..."

stop it... you're making me drool!
I've been eyeballin' the S2000's on the street, I never knew it had all that fun stuff goin' on! You can tell that ad was wrote from the heart. It's tougher on us guys at Chevrolet Dealerships, It's tough to get all lathered up over a low mile, pristine Aveo! Wait! It's got electric windows! oooooo!

Kudos!
JP

I had the worst experience with ADP bz results.I signed a contract for $3000 a month for 36 months to built the website,crm,seo work.I was told i was signing 30 days out cancellation.It took them 3 months to built a cheap site leaving out several key components.sales rep gene loop told me not to worry they will correct it,i started getting billed from the 2nd month of signing the contract.i was assured the corrected billing will strat when i approve the site.finally they corrected the website in 5 months.i called the gene loop and also sent him a email of confirming the web site was working. gene loop assured me new billing will start from next month all previous bill's are voided.few day's later i recieved a email from account eric pearson bz results controller asking me why i have not paid for 5 months.i said he should speak with gene loop he said gene loop had nothing to do with this either i pay past 5 months or my site will be shut down and they will sue me for 36 months cause contract was binding.i was very upset i kept calling gene loop but no answer.my site went down within a week and i was left without a website.i had to quickly built another site to atleast stay in buisness.bz results sued me for 36 months $108,000 plus taxes and expences.this case went on in court's for 3 years ADP is very big company they got a summary judgement in court without a trial and court awarded them $$356,000 including attorney fees.BE very careful doing buisness with ADP.They have bunch of fraud,cheating lying sales rep and accountant working for them they will put you through bankrupcy.ADP is politicaly very well connected they can win cases without even going for a trial.Do you really want to do buisness with them.REALLY THINK AGAIN.

I can tell you that I work for BZ results in ADP. First of all after reading all these comments I want to say from the bottom. BZ Results DOES NOT steal! WE actually probably held your leads from you because you never paid our company to survive. It goes hand and hand. If you dont pay a grocery store for your groceries.. will you walk out with them.. no.. same difference. Second, the fact that we over charge. I want to note that in todays economy we have slashed are prices to about half of the competitors, meaning that we are no longer making profit and our goal is to hold clients until the economy is back on its feet. Meaning that custom work or such is a waived charge because we know the hard economic times. We at BZ Results treat our customers with loyalty, respect and most important as great customers. Dont let people that had one bad experience tell you different based on facts that is just a one sided coin. Remember BZ Results is a business and if we dont profit then the client doesnt profit. Its just business sense altogether.

becareful of bz results,these people are desperate crooks,they stole all my leads from there buzz track crm,be careful you will loose all your contacts.do not do buisness with them,please contact me i will tell you how i was scamed by bz results/adp.
kinneygalani@aol.com

I have done research on BZ. I think that these comments are being brought out by competitors of BZ. Can we say...Jealous?
Why hate ADP because they are good at what they do?
Why hate eBay because they have 90% of thge online auction market?
These are the same people that follow a young artist , or rock band and then accuse them of selling out because their record sold too many units.
As a former Car salesman(8 years) in the Chicago Market, I can tell you that the auto industry is like no other industry.
It is trully the last place where a sales person can crash and burn and hone his or her skills to further their selling skills.
The internet is loathed in many dealerships. BZ has it's work cut out for them. The fact is.... More and more dealerships are embracing the internet , and the next step in the evolutionary process will be to maximize the visitors on the dealers website.
I believe that the internet is much more important to a delaership than their physical location.
Only the strong (and savvy) will survive!

I represent a company with product that has been in development for 6 years. It will blow the sox off BZ's product. I'm looking for someone to purchase the company ($1,000,000 in sales for 9 mo.) and convert its focus from development to sales. Anyone out there like to see an Executive Summary? They have Data, Inventory Management, Web Design and more...

At least Ryan isn't affraid to stick up for the guys paying him.

BZ is a marketing machine and they have done wonders for this sector of the industry. BZ gets a lot of bad rap from vendors, competing vendors particularly, but often times I find it unwarranted and out of spite. Few companies can solicit to its audience members the way BZ can.

Keep in mind that BZ originally was a marketing company that entered into the automotive industry by creating a website product and BDC philosophy. Most agree that their product is not the silver bullet, but an honest professional in this industry should acknowledge that BZ did raise the bar on what can be done in the dealer website market. BZ pushed the envelope and as a result landed themselves in the lap of sound and stable industry giant ADP. This did not occur by luck, stupidity, bad product, and bad business. It came from vision and dedication.

ADP was smart for acquiring BZ and probably has more vested interest in the deal than most outsiders could know. And BZ was becoming too big for its own good so it was smart for them to be acquired.

I don't know about you, but the more I hear from Lloyd at AAISP the more he sounds like a flim flam. Now he is selling stock? Is this registered, legal, or for real?? Just wondering, but he has lost me.

Read a first hand experience with BZ Results. You'll be floored!!! Zoomshare: Home

I just heard a comment today from a GSM in Tempe about BZ Results being an inferior product because once the trainers leave, the system is not used. No buy in.

Are you kidding? Now there are 2 disfunctional companies together to oversell the dealers. Imagine, one selling worthless multi-media emails and the other leasing $500 printers for $22,000.. a match made in heaven

Rumors are true. ADP acquired BZ last Monday -- Wolfington is staying on with the company.

ADP confirmed it to me on Thursday.

I just heard from my "raving fan manager" that it is true. ADP has purchased BZ Media.

nice tips...appreciate the insight.

Good Day Jeff;

Anticipating the opportunity to catch up with a real buddy of mine in the industry, I am hoping I have better luck coordinating with you for a response to this post.

Your mention of the lunch you had with your AutoTrader.com representative reminded me of excellence I celebrated in Lincoln-Mercury and Mercedes and Acura highline sales, here in Atlanta. I am betting that the same "great" who mentored me during my tenure at those stores is affiliated with this AutoTrader.com representative. (or, quite possibly may be the representative himself).

Regardless, I would like to speak with you. It would be good for you to know of this very valuable person, and I would like to get back in contact. So, give me a call at the top of your week.

D. Ramonte Rawls, Founder
Auto Buyer Consultants
770.507.5733 Office
404.403.7476 Mobile

EA: DRawls@AutoBuyerConsultants.net
WA: www.AutoBuyerConsultants.net

Jeff,

Excellent write up! It does however strike a chord with me. Being a former Internet Director for a Luxury (Lexus and Toyota) franchise, I understand exactly what you are suggesting in the article regarding third party companies and pictures. On the contrary, our company, BluSolutions, has an inventory management division that delivers the "in house" quality you suggest. We even custom design the window labels in full color. Twenty five images is the standard and professional photography is a must. We have a stringent training program for our photographers that begins with the internal operations of an automobile dealership. Put simply, we have put to market an inventory management solution that has been developed with the progressive Internet Director/Manager/Salesman in mind. The important part of this article you have written is the understanding that the images and data you put online is the FOUNDATION of any successful internet based sales initiative. Great article though! Mark Springer, BluSolutions.com.

Internet Sales Managers and floor sales people are about as similar as they are with relation to the service techs in your service department. To think you can train a sales person who is happy and content to sit on point for the "Up Bus" to stop is not going to be successful in the mining and developing of relationships with an Internet customer. A caveat, however, if your store is a small, upper-end store like MB or Porsche, then perhaps.

To think these customers are the same is equally naive. Spend some time with say a Subaru or Toyota customer who has a portfolio of information on specs and pricing and compare that buying selling experience to the good ole boy looking for an F-350 diesel, and you will quickly learn the levels of expecations are VASTLY different, and if you use the same approach on both customers, you will sell one, but not the other.

Point being, Internet customers usually desire to develop a relationship prior to arrival to minimize haggling. At least, that is my opinion.