Internet solution provider

[Felix Robert]

Hello world,
first post in here.
I am writing today, because after two years working in the Automobile industry, I am facing to take a big decision and I sincerely need you advices.
I have a strong Internet and Marketing background (15 years).
I am from the radio and television world. And I experienced the changes in the 2000s that the TV faced with the arrival of Youtube.
But since 2 years, I slowly and strongly built an opinion about the few Internet solution providers we have in Quebec.
Like paying exorbitant fees of $ 1,500 (and often much more) per month to have a web solution. Come on.
Our group of car dealerships have 9 websites .

It annoys me to see that I have to pay $ 1500 per concession, when I know as a fact that the architecture (Back-end/SMS) are all the same.
It also makes me angry to see that it is often more than $ 100,000 per year who go directly into their pockets.
And for what at the end ??? We are not the owners of the websites ! It’s like renting…

With my experience in web project management, I know that the solution is not worth $ 100,000.

Or maybe it is, but why pay that pay that much, if in-house expertise (me) allows us to have websites that are performing well with good SEO.
I mean, those companies are filled with professionals… and I know that I pay for this.
but do I really need their help/advice ?
What would be the difference between having a $2000/month solution with them, and building our own solution, with a good seo professional, a good designer, a good specialist… building my own team and develop my own Internet solution.
if I can get 9 websites for let’s say 70 000$.
it’s 30 000 in savings, we own our solutions/website. We keep the website for 3 years, then work on it again as a refresh.
easily, I am sure we can save so much money.
Just have to concentrate on creating good content / SEO.
Syndicate our used car to all those trader.ca / auto.123 / Kijiji websites… and that’s it… no ?

So Trader, Evolio, e-Dealer and all the others...
Am I crazy when their solutions in 2013 , are too expensive for what they are.
If in house… I could basically do the same !? I am sure I can build a good alternative.

Thank you in advance for your advices guys.

 

[joe.pistell]

Felix, you can DIY (I did it for a decade), but, I see little evidence that you understand the challenges ahead. Off the top of my head...

Your thesis is based on less costs, not more performance. Your solution should be performance FIRST.

You claim you have experience in web project management, this means you need other people to help you make the sites. Your upfront costs for DIY will be very high. Next, What will be your Re-occurring costs once it's launched? How many years of DIY use before you hit break even?

Who is financially responsible if your lack of experience produces a project road map full of "surprises"?

Lastly, if I am the dealer who cuts the check, how dependent am I to you? In other words, if you leave for any reason, what will happen to this mammoth investment of time and monies?

 

[ewalraven]

What you're trying to do is no small task. People have tried this before and there's a lot you really need to consider.

Lets breakdown the simple stuff:
- Do you think you can pull your data from nine different DMS systems daily?
- Can you VIN Decode and clean up the data before it gets the websites?
- What about the photos and/or videos of the cars you want exported out to the website and third parties?
- Are you willing to provide 24/7 support for anything website related?
- How often are you willing provide large structural changes when new management comes it and want something redesigned?
- Have you considered compliance -- Will it all match up the compliance standards?

It's very possible you and/or the team you want to hire may be able to do this, but there's a lot to consider. Just because it's cheaper doesn't mean it's better. It might be bigger, faster, and stronger, but providing daily, weekly and monthly support can really take a toll.

If you have a problem anything website / third party related you can just pick up a phone or send an e-mail to get it fixed. Same with problem two, three, four, etc.

There's plenty of moving parts just to get your inventory updated on the website daily -- weekdays, weekends, during off hours the machine is working. If there's a problem there's systems the have been designed and developed to alert the proper people.

After all this considered I think you'll realize that $9500/mo is 'cocktail money'. And you should work with your existing vendors or look for others that have knowledge and experience in the industry.

Once again, not discouraging you. In fact, I'll root you on if you attempt this .. just please do your planning and make sure the only focus of this isn't "I can do it cheaper".

 

[Felix Robert]

Thank you guys for this quick answer.
Joe :
Of course, the performance comes with the decision of DIY.
Saving money is important for my boss. He believe (and I also believe) the performance comes with the work I do.

I have to admit, I was more speaking of finding a smaller company, with all the talents already inside... and developing an alternative solution, then hiring a developer, designer and the others.

It's funny because all your arguments are really Dealer/Trader oriented
Honestly, I just have this feeling that more people like me will work for groups and dealerships. And with my history, my experiences, I can put create an alternative for my boss. Do you honestly think the all the dealership in the world needs the full Trader T3000 high cost solutions to sell their cars ?
It's $100 000 a year. And this is without my salary, without any emails marketing, adwords.... $100 000 for a website.
I sincerely think the are offering Cadillac, when I only need a great car that work well and is reliable. I know how to drive anyway.

Recently, we've seen the same thing happening with 3 groups (competitors) who decided to create their own solutions, by splitting the cost for development, because they were pissed off paying sooooo much money to Trader every week.
All those dealerships are doing really well in terms of selling in the province And their website look are nice and effective.

So yes, once the project is started, my boss have to believe in the project first. Put all his trust in the project. And of course, if I leave the business, i don't want to put my boss in a bad situations. Everything must be well documented. If I leave the building, another «me» can handle the website. Or even a company...

ewalraven :
You have really great points.
All to consider. But seems relatively easy to work on. If I work with the good people.
What's killing RIGHT now... Our CRM inside only managed the new car / used car / service department. No link with any Internet Database. I would love to work with something like Adobe Marketing Cloud. And create a link between our Service database / and the Internet (email, contest, notifications...) This is also the big challenge. And I would like to do everything properly.

-----

Maybe I am overqualified to work were I am right now.
Maybe my boss solutions should be :
- Having a good car seller, answering email via the 2000$/ website would be fine for my boss.
- Doing adwords campaigns with the 2000$/month solution company, Paying for remarketing campaigns with high cost banners... with 20% extra fees.
- Paying for some minor changes on the website every time.
- Paying for the CMS / website upgrade every 3 years anyway (This is what happened with our provider. The offered a website, with his CMS. 3 years later, they do not offer support for this $500/month CMS anymore... They developed a new solutions at $1500 month with a new CMS. And we don't have the choice to switch !!! Pathetic).
- Save a 60 000$ salary for a Marketing / Internet dude that do the email marketing, promotions : Print and web, Social Media and much more.

From my point of view, it's just a big gimmick. Sorry.
From their point of view (Trader and others), they all have the best service / solutions / vacuum cleaner to offer.

Think this thing is way to absurd or complicated... I should go back working a the TV station

Thank you for listening.
Felix

 

[Ryan Thompson]

Hey Felix - welcome to DealerRefresh! Glad to see a fellow Canadian asking this great community for help.

Quick Question - outside of Trader & Evolio, how many web vendors will accommodate the needs of a French dealer located in Quebec? I'm sure you have unique needs (French data , customer service , billing).

I haven't really paid that much attention to what other Canadian dealers are paying for monthly fees to their web vendor, but $1500-$2000 sounds a bit on the high end especially for a dealer group.

It it seems like every few months I hear of a dealer saying f$&k it and taking the stance to develop their own site.

Outside of Uncle Joe, I haven't heard of any major success stories. The opportunity cost has already been calculated for you .... I would consider shopping around a bit.

 

[joe.pistell]

... Think this thing is way to absurd or complicated... I should go back working a the TV station

Thank you for listening.
Felix

Felix. You are not alone, everyone's 1st observations lead to a natural conclusion "How in the h*ll can this website be so damn expensive, there is no way this can cost this much, no way!!!!??"

Knowing that this not just for you, it's an industry issue, so, to validate your thoughts, you'd benchmark the DIY car dealer websites. There are some, but it's somewhere around 1000:1. Heck, it'd take you a year to find just 5. Here's a 2007 article i wrote that featured some DIY sites: The Winds of Change

Next, you'd turn to find a small boutique and you'd discover that if the boutique is not an automotive specialist, the chance of failure is higher. Example: Bruce Titus and the non-auto boutique train wreck.

Here is a sample of the complexity of success. A DIY diary, blow by blow: http://forum.dealerrefresh.com/f43/uncle-joes-make-over-diary-1683.html

 

[ewalraven]

I have to admit, I was more speaking of finding a smaller company, with all the talents already inside... and developing an alternative solution, then hiring a developer, designer and the others.

Props to you if you can actually find somebody that is willing to put up with the headaches of the auto industry. It's tough. There's a lot that we request, require, and have developed that don't work like most industries. Keep in mind, there will be plenty of people that will promise you the world .. so choose and hire wisely. Sounds like you got that covered though

ewalraven :
You have really great points.
All to consider. But seems relatively easy to work on. If I work with the good people.
What's killing RIGHT now... Our CRM inside only managed the new car / used car / service department. No link with any Internet Database. I would love to work with something like Adobe Marketing Cloud. And create a link between our Service database / and the Internet (email, contest, notifications...) This is also the big challenge. And I would like to do everything properly.

-----

Maybe I am overqualified to work were I am right now.
Maybe my boss solutions should be :
- Having a good car seller, answering email via the 2000$/ website would be fine for my boss.
- Doing adwords campaigns with the 2000$/month solution company, Paying for remarketing campaigns with high cost banners... with 20% extra fees.
- Paying for some minor changes on the website every time.
- Paying for the CMS / website upgrade every 3 years anyway (This is what happened with our provider. The offered a website, with his CMS. 3 years later, they do not offer support for this $500/month CMS anymore... They developed a new solutions at $1500 month with a new CMS. And we don't have the choice to switch !!! Pathetic).
- Save a 60 000$ salary for a Marketing / Internet dude that do the email marketing, promotions : Print and web, Social Media and much more.

From my point of view, it's just a big gimmick. Sorry.
From their point of view (Trader and others), they all have the best service / solutions / vacuum cleaner to offer.

Well, you're talking the lingo, and sounds like you have a good vision. I really do hope the best for you and will be rootin' for ya on from the sidelines.

Just:
- Go slow.
- Do your research.
- Be cautious.
- Double. Triple. and Quadruple check before you do anything!

By coming here, you've already dipped into some very experienced people with a lot of knowledge. So before doing anything risky or dealing with some odd ball company. I would highly recommend running it by the DR community first.

 

[joe.pistell]

Create a diary here. It'll be fun to watch and you'll make a name for yourself

 

[subi101]

Felix,

I completely understand your points. I've been there. At one my last dealerships we went in-house, and it worked well. The only problem is that good, company-minded individuals that match our views and goals are hard to find. Once you go in-house... you have to maintain it. That means 24/7 support for 9 rooftops, plus marketing efforts for all holidays and sales, plus traffic concerns, plus vendor tools that plug into your website, etc... It is a lot more time and correct staffing than one would think.

If you have the right team, you will absolutely be saving money and be ahead of the competition. The only fear I have that stops me from going in-house again is being able to maintain it at the same level that our vendors have the access and ability to. The updates, the information, and relationships they have... I just can't compete with. To keep up with the Google updates and changes itself are difficult. Then there is the incredibly fast changing technology adding to that is more than I think I could take on. But you are far more well-versed than I and I'm sure you'll do some amazing things.

That being said... if you have the right team and a DP who is willing to allow you to define the roles, schedules, responsibilities, time spent in actively learning/researching, etc without question... then go for it. Otherwise, be careful... It is far more complicated than I would have expected my first go around.

Keep us updated! I'd love to know how this all works out for you. Good Luck!

PS. I also sent you a private message with my contact info and some suggestions.