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Amazon Now Competing With Dealers

April 23, 2012 By Arnold Tijerina

Amazon.com announced the launch today of a new store AmazonSupply.com

The site, as reported by Mashable, is “aimed at buyers in the business, industrial, scientific and commercial spaces”, however, anyone can order from the site.

Being that I buy pretty much everything from Amazon (including my daughter’s loft bed and, most recently, a refrigerator), I was curious as to what this was all about.

To my surprise, they are offering a wide variety of auto parts, car care items and even wheels and tires. (See the Fleet & Vehicle Maintenance category).

As you can see, they have quite a large inventory of items. Unlike Amazon’s Marketplace, it’s unclear whether these items are being sold by Amazon directly or through third-party sellers.

amazon

How, or will, this effect your parts business?

Amazon has typically made sure they are the lowest price in any market. With free 2-day shipping on orders over $50 and no sales tax (in most cases), I’d say they have a distinct advantage from the get-go.

How long before they try their hand at selling cars or listing dealer inventory (at a cost, I’m sure). Amazon is increasingly trying to be a consumer’s one stop shop for everything. I’ve bought everything and anything imaginable on Amazon and have yet to find something NOT on Amazon.

Consumers may always need someone to install and service the vehicles but it just became a little easier and more attractive for them to not spend money in your parts department.

Filed Under: Automotive, News, Sales, Service Tagged With: amazon, Automotive, Dealers, fixed ops, parts, service

Buying Reviews and Car Dealerships

January 28, 2012 By Arnold Tijerina

In the last few days, there has been national media coverage of a vendor on Amazon who decided to “stack the deck” and buy reviews. The two articles, one on Gizmodo and one in the New York Times, told the story of a company selling cases for the Kindle Fire on Amazon who included notes in the packages asking for positive reviews from buyers in exchange for a full refund of the purchase price they paid.

Within the automotive industry, there have been (and still are) companies that promise to increase your online reviews and, while they claim the reviews are all genuine, people paying attention can easily dissect the fact that they are not. I wrote an article in June of 2011 that investigated one company, Review Boost, that was suspected of doing just this in which I interviewed the owner.

Most dealers do not participate in or knowingly hire any companies that do this.

One statement in those articles, which was included in the letter to consumers who purchased the Kindle Fire case, caught my attention though.

“We strive to earn 100 percent perfect ‘FIVE-STAR’ scores from you!”

Does this sound familiar?

Most dealerships have a time, usually in their delivery process, in which the customer is “educated” that they will be receiving a survey from the manufacturer and how important it is for the dealership to receive top scores in all areas. Some dealerships even get as detailed as having a copy of the survey with the desired answers highlighted and reviewed with the consumers. I know dealers who ask the customers to fill it out and bring it into  the dealership in exchange for something – a free oil change, t-shirt, etc. Some ask for the survey to be returned blank (which they obviously plan to fill out themselves) and some just ask them to return a completed survey which they can then read and decide for themselves whether to return it or not. I know dealers who will even RDR the car with a different address if there is heat on the deal so that a customer never gets the survey at all.

While this is certainly not identical to the vendor in the articles, in which they offered a refund for the product in exchange for positive reviews, it’s pretty close.

Reviewing a CSI survey with customers when they buy a car is skating a fine-line especially when there’s coaching involved. When you throw in a free oil change or some other incentive, it’s the same thing. Every dealer knows that they aren’t supposed to do this. However, CSI scores can be tied to future incentives from manufacturers so dealers are always under pressure to keep their scores high.

The problem with any of this is that you never get an opportunity to truly improve. You don’t get real feedback on what (or who) is broken in your process. Even though these aren’t “public” reviews and are only viewed by the manufacturer and employees of the dealership, the opportunity for improvement still exists.

You should embrace the opportunity, take your lumps when they come, and do your best to solve the customer’s complaints or criticism with your CSI surveys just as you would with your online public reviews. Even though consumers might not see these when choosing your dealership, making sure that ALL your customers are happy by attempting to solve issues they may have had, whether you received the feedback publicly through an online review or privately through CSI survey feedback, will help you grow as a dealership.

Embrace all reviews, both negative and positive, public or private, and use them as a learning experience and an opportunity to fix broken processes, clean house of cancerous employees, and become a better dealership.

I guarantee that by doing this, you’ll see less negative reviews.

Filed Under: Automotive, Best Practices, Editorial, Management, Reputation Management, Reviews, Sales Tagged With: amazon, gizmodo, new york times, news, reputation management, Review Boost, reviews

The Kindle Fire Deal That Wasn’t Supposed to Be

November 27, 2011 By Arnold Tijerina

[UPDATE 12/2 – This phenomenon is still going strong. People are STILL trying to get this deal.]

For many, Black Friday has become more about the “thrill of the hunt” than about a real need for savings. People lined up 9 days early at a Best Buy in Sarasota, FL. In my opinion, there really wasn’t anything worth waiting NINE DAYS IN LINE but, hey, that’s just me.

xlarge_kindle-fire

On to the sale that wasn’t supposed to be.

A Target store in Trumbull, CT didn’t have enough Kindle Keyboard 3G’s in stock for their Black Friday sale so, in an act to make their customers happy, they decided to sell their stock of Kindle Fire’s at the same discount (38%) that was being offered in the ad for the other item. This effectively reduced a very popular, just-released item from $199 to $123.38 plus tax. Kudos to them.

One of the people who managed to get this deal (and it is a good deal) decided to post the deal to a popular deal website, Slickdeals, to inform other bargain shoppers. Many people saw the deal and attempted to get their local Targets to sell it at that price to little success. Then one person attempted to get the item price-matched at a Wal-Mart using the display pictures and receipt images as proof of the price…and succeeded.

This prompted a mad rush on the country’s Wal-Marts. The crowd talking about and trying to get this deal kept each other up-to-date on where they had succeeded and failed posting pictures of receipts and store locations as they went, in real-time. Remember, this started with one store who made a special deal to its customers.

This thread has grown to over 59 pages (2300+ posts) as people scramble around all over the country, sometimes visiting 3-4 Wal-Marts and other retailers in an attempt to get this deal price-matched and save $75. Some people just want a deal. Some are looking to resell these which, by my calculations, would net them AT MOST $50 each.(Check for yourself) Many just bought them because…well.. for no reason other than it was a good deal.

I like a good deal as much as anybody but this is just insanity. The unsuspecting managers at these competing stores are getting hammered. In many cases, these deal seekers report having to “convince” (ie. complain vigorously) the managers to even give them the deal in the first place. I suspect many managers just gave them the deal to save themselves headaches. I’m fairly certain that these deal-seekers aren’t being straight forward when attempting to get this price-matched deal (ie. telling them the circumstances under which only this one Target sold the item at that price and why) which, in my opinion, is fraudulent, or, at the very least, dishonest. To top that off, many people are doing this simply to say they succeeded as, more often than not, they are failing. However, just enough people are succeeding to keep people trying.

What compels people to waste so much time in an effort to get a deal on an item they may not even want under circumstances that take advantage of retailers requiring them to be dishonest because one store made a special deal to their customers?

This started on Black Friday and is still going on today.

What are your thoughts?

Filed Under: Editorial, Sales Tagged With: amazon, black friday, kindle fire, sale, target, wal-mart

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