Reviving the Online Auto Auction

Five years ago, I started traveling the U.S. tasked with installing simulcast, and teaching auto auctions 'which buttons to push'. Unsatisfied, feeling that I wasn't really preparing our customers with a foundation for Internet growth, I developed an online survival course. So, in addition to teaching these auctions how to operate their technology, I delivered a new curriculum with one core philosophy - "Build A Life For Your Business Online".

The message was well received, and I was able to cover more ground in the 3 days I spent with each auction regarding what really needed to be done, and who was responsible for doing it. However, reality was reality. Resources were limited. 3 days was not enough time to embed an entire online business model into the existing infrastructure. So once I left, the effort quickly flat-lined. Auctions reverted back to 'pushing the buttons', and the goal went from 'building a life' to 'surviving auction day'.

Inventory uploaded? Check! Equipment turned on? Check! Do we have a clerk? Check! CR's on all vehicles? Well... let's not get crazy!

Fast forward to today... October 20, 2016. My day was filled with assisting auto dealers through calls, chats, and text messaging. Topics included online registration, technical issues, report requests, post-sale inquiries, and many general auction questions. In addition to engaging dealers by phone, and online, I met with the auction teams to develop strategies that would incorporate new digital methods into the operation. I had a meeting with one auction to coordinate a new online workflow process which included their entire administrative team, and a meeting with another auction to coordinate a weekly promotional sale that would leverage the online platform to lane dealers. Auctions that once didn't have the time, or staff to adjust to the inconvenience of a digital strategy are now revising their policies, allowing customers to communicate through multiple channels, putting their clerks through certification training, integrating the online segment as a part of their company culture, and developing a real online infrastructure!

Do we still have a road ahead of us? Yes. Are we seeing progress in online attendance, participation, and sales? Yes. Has business doubled? No. If it did, would our Auction Members be prepared? Yes. Why? Because, for them, the hard part is over. The most difficult thing they had to do was make a choice to commit to improving their online business. The fear has subsided, and the technology is just not as intimidating as it once was. There is solace in organization, and we are continuing to organize a strong network of auctions looking to move the industry forward in the virtual space. We are building a life for the Traditional Auto Auction, online.

So today, as I sit here, and reflect from 5 years ago until now, I feel extremely proud. I am proud of our members, and I am proud to be a part of this revolution...this revival. Every day I get to experience appreciation from dealers who are extremely pleased with what we are doing. I am also privileged to experience the enthusiasm of auctions dedicated to moving forward. This week we decided to ask dealers, on behalf of each of our members, the following question: "What could our auction do to provide you with a better online auction experience?" For the most part, this is typically a loaded question, and implies a request for negative feedback. So this is how you know you're doing something right!

"I think you guys are doing a fantastic job at your online department, can't think of any improvements needed at this time but love all the improvements you have made recently, just wanted you all to know that! "

Online Manager vs. Online Leader

The Difference Means Growth For Your Online Auto Auction

All anyone knew was that the position needed to be filled. Someone needed to be held accountable. The online events needed to be created... the inventory needed to go up... someone needed to know how to register customers... the computers needed to be turned on... And that, my friends, was the original job description for the 'Online Manager'. Someone needed to maintain the new process. It was right up there with the philosophy that online clerks only needed to be able to click a mouse, and hear.

I've been asked many times what the job description for an Online Manager should look like. The problem I always have with that question is the word Manager. You see,Managers are typically hired to supervise a process that already exists. My belief is that the position truly calls for a Leader - someone who is willing to disrupt the process to maximize the potential of the business. The only way this should scare you is if you don't believe that the person you hired is capable of doing just that.

I'm not talking about someone who comes in with a new idea every day, and attempts to implement it. Leaders are strategic, and they are able to take direction as well as they give it. They are not egotistical. They will not stand in the way of the auction's online success to exert their authority. They do not say things like, "We have to adhere to this procedure, because that is what we do!" They are willing to challenge the system to produce a better outcome. This is technology... it is constantly evolving. Therefore, if you have an Online Manager who cannot easily adapt to change, then your growth potential is limited. A leader is a gateway to success, not a barrier to entry.

The industry has a lot of opportunities for Online Leaders to meet and share ideas. Annual Conferences like the NAAA, IARA, ARN...just to name a few. AuctionVcommerce provides a dedicated focus to the online initiative for a nominal fee, and consults with Online Leaders every day. We've found that Online Leaders ask for direction, but they also provide good feedback based on the experiences they encounter after they've tried new methods. They motivate others to be involved, because they understand that scalability is important. They evaluate outcomes, and make adjustments, rather than just revert back to old methods out of fear. Online Leaders are people who think globally, because they understand that there is opportunity beyond a 300-mile radius of the physical auction. They are people who are comfortable with technology, and they help others become comfortable with the technology. Would you hire a jockey who is afraid of his horse, and expect him to win? The Online Leader is aware of everything that impacts the growth of the online business. They are setting goals, and measuring success.

When I think of an Online Manager, I picture someone who waits for changes to occur. When I think of an Online Leader, I picture someone who is that change.

Just think...you already left your comfort zone when you agreed to take your business online. Now you have to adapt your business model to meet the requirements for online success. Some auctions may say, "But we're not ready for that kind of change." My response? "You will never be ready if you don't even begin to prepare."

Think Outside the Blocks! TM

How Can Auto Auctions Improve Dealer Confidence Online?

The Online Perception

Perhaps Buzz is a bit naive... or... maybe Woody has had a bad experience in the past. (For those of you who don't have have kids, I am referencing the image above.) The bottom line is that you have 2 different characters, with 2 different reactions to the same activity: buying vehicles online.  I selected this image because I think it truly reflects the current state of online remarketing as we continue to transition into the digital world. In fact, when you first looked at this image, you may have felt Buzz's enthusiasm, or identified with Woody's pain. What is important to understand is where the perception originated,  and what auctions can do to improve. Before we explore the contributing factors to the online perception, let's take a look at the existing views.

The Traditional View

For some dealers, there is a blatant resistance to buying vehicles online. The auction experience is a time-honored tradition. It is very important to be able to kick the tires, listen to the engine, look under the hood, and close the deal with a firm handshake. In addition, it's important to engage with other local members of the industry.  It's a community.

The Intermediary View

Then there are dealers who are willing to buy online, but have established some  'play-it-safe' rules regarding their activity. For instance, they will only purchase vehicles that are over a specific price point. Some restrict their online purchases to Factory, Fleet Lease, or Institutional events. The majority will not purchase without a detailed condition report. Then there are those that may attend online, but send in a rep to touch the vehicle. Last but not least, you have the buyers who believe the Internet to be a great tool to conduct the preliminary research, but revert to traditionalism when it comes to the actual purchasing.

The Revolutionary View

The world is in a rush, enabled through an onslaught of innovative technology that makes 'waiting' a thing of the past. 'Time' has increased in value, and options are virtually unlimited. Why attend a single, local auction when one can simultaneously view multiple online venues, reaching beyond the geographical proximity of the dealership? If it can't be done from a mobile phone, it's not worth doing. 

These dealers are not the majority, but the numbers are definitely increasing, and are expected to rise as Millennials begin to occupy positions in remarketing once held by traditionalists. You do not have to be clairvoyant to predict that there will be a shift from lane attendance to simulcast - that is - if a new technology doesn't emerge to disrupt the entire industry altogether. 

The 'X' Factor

Now back to Buzz and Woody. What makes Buzz so confident while Woody appears to be on the verge of a panic attack? A good majority of the industry will tell you that it has to do with the condition report, and the age of the vehicle. However, when I look at similar, successful online business models, I see an unlimited capacity for online sales. One that is not restricted through a single criteria, but instead, is based on the infrastructure of the business as a whole. 

The Anti-Online Auction

To date, the majority of brick-and-mortar auctions have become simulcast-enabled. Another way to say it is... they've put their business online. Meanwhile, here's what they didn't do... create an online business. 

A dealer performs a keyword search for an online auto auction. He views the auction's website, which offers enough information to prompt him to register. He attends the event, and realizes that there is so much he doesn't know about this auction. He has a few questions. He attempts to call the auction, but it is sale day, so he is not able to get through. He proceeds to message the online clerk who doesn't respond. Finally, he decides to bid on a vehicle, and just as he thinks he won the bid, his offer is retracted, all bids are closed, and the vehicle is sold to the floor. 

Now let's say that this dealer bids on another vehicle, and is successful. He has the vehicle transported 500 miles to his location, only to find that the transmission is making a very distinct noise. He looks back to the condition report to find that there were no announcements, and nothing was mentioned during the broadcast. The process to arbitrate the vehicle is arduous, and in the end, he learns that he will not be reimbursed for the cost of transportation.  What's more? he paid an additional fee to enjoy this convenience.

What is the common denominator in this dealer's entire experience? Is it the condition report? Is it the age of the vehicle? Or do you think the process could've been greatly improved with a stronger online infrastructure that was globally sound, and provided adequate resources for communication?

It seems as though the burden of a good online experience weighs primarily on the dealer's ability to overcome the lack of an online infrastructure.  Essentially, the auctions are waiting for the dealers to adapt rather than adapting to the dealers. Why? Mostly because they don't know what they don't know. 

If you're a dealer, and you buy at online auctions, we are looking for your feedback. Voice your concerns, or your satisfaction. This is an opportunity to improve the online experience. You will be heard. Click here to locate and review an online auction now!

Think Outside The Blocks

Waking Up to The Digital Reality: Why the Auto Auction Industry Should Self-Disrupt

For many, the hardest part about adapting, is breaking from routine. When you have gotten to the point where you feel like you've trained your staff well enough to do the job in their sleep, you are more apt to reject any new procedures, no matter how much opportunity they present, or how much efficiency they may create. After all, with nothing to indicate that your business is in jeopardy, why do anything? Especially if your business seems to be thriving.  So rather than disrupt your operation, you continue to do things the way they've always been done. If and when the time comes, you will deploy the methods you need to save your business, because of course you will see the attack coming from a mile away... Right?

Well, let's ask Blockbuster Video. Once the undisputed leader of video rentals, BlockBuster began to attribute a large portion of revenue to late fees. Prompted by a $40 fee for a late return, Reed Hastings - a disgruntled customer - founded Netflix... (you've heard of them right?) Not only did Netflix abolish the late fee, but they also proceeded to reinvent the way customers obtained video rentals. They established a strong position in the digital space, allowing customers to purchase movies on demand. Customers demonstrated their opposition to BlockBuster's disproportionate penalties by subscribing to Netflix, who provided convenient access at a reasonable price. By 2010, the brick-and-mortar video giant once valued at $8.5 Billion, had been brought to its demise. 

This is just one example. In most cases, unlike the BlockBuster scenario, the disruption is too sudden to formulate a counter attack. All eyes are on the web, and even simple applications now have the ability to disable traditional markets.  Consider what email and digital payment systems have done to the United States Post Office; what digital photography has done to Kodak; and what Amazon has done to bookstores. The iPhone alone has consolidated what used to be several devices. Social Media has replaced personal encounters. Uber has waged a war on the Taxi Cab industry, and WhatsApp is challenging the telecommunications industry as we speak. 

With the constant availability of the Internet through a multitude of devices, the growing acceptance of shopping online, and a new generation becoming more fluent in the virtual environment, it is safe to say that the Auto Auction Industry should be afraid... very afraid! It is called 'disruption', because you do not see it coming, and there are currently many technologies targeting the traditional auction format. My belief is that the only way for the Auto Auction Industry to sustain itself is to self-disrupt. This is not to say that auctions should perform a complete overhaul of their core business model, but that they should place a stronger emphasis on the development of the virtual equivalent. By simultaneously supporting both traditional and modern methods of operation, auto auctions will find themselves in a stronger position to disrupt the disruptors. 

To find out more about improving your online position, call 855-998-8266

"Think Outside the Blocks!"

What Message Are You Sending To Online Customers?

The Customer Perspective
Your lane customers show up to the sale, and they are welcomed with greetings from the staff, Early Bird Specials, free lunch, a chance to win prizes by participating in physical activities after the sale... It's all part of the physical auction experience. The online customer logs in... no incentive to attend, no acknowledgment of their presence, the fear that floor bidders will be shown preference, and an added fee for the privilege of being able to purchase online. What are we saying to online customers?

This scenario is the condensed version all of the discouraging factors I have seen at various auctions throughout the country.  These practices were implemented through the direction of the simulcast vendor, the perception of the auctioneer, and despite the absence of research and development. Live Auction Broadcasts were sold to the auctions as an enhancement, not as a virtual expansion. Therefore the perception not taken into consideration was that of the online customer. This is probably due to the fact that, back then, online attendance was extremely low, and online options were limited.

Why Do We Tax the Online Customer?
I remember working at the auction, and having the simulcast provider sell us on the idea that we could make money by charging our online buyers an added fee for the convenience of shopping online. Looking back, I see that this was a tactic to counter our reaction to the investment we would be making in licensing the software. Now, compared to other platforms, it's almost as if customers are being fined for attending the online event. Additionally, when a buyer makes the decision to purchase vehicles, he has to factor in that added cost, which reduces the motivation to buy. I think it's safe to assume that motivated buyers lead to higher conversion rates. I am also going to assume that the revenue from the buy-fee would be more lucrative than an online tax. 

The Digital Revolution
In the last issue, I distributed an article on digital disruption, and the impact it has had on Fortune 500 companies. The moral of the story was that managers who did not direct a healthy initiative towards virtual development were unable to compete with advancements in online automation that reduced operating costs and created greater efficiency for customers within their industry. They also went on to point out that the digital revolution is reaching all industries. Let's look at the evidence in wholesale remarketing. Auctions are now beginning to compete with former consignors as new platforms are emerging, branding dedicated marketplaces for companies like GM, Hertz, and most recently, the dealerships. In order to counter this disruption, we need to focus on the advantages the online auction facility brings to the digital customer. We have to undo all of the wrongs, and eliminate anything that may discourage customers from online participation.

How To Counter The Attack 
AuctionVcommerce was developed for this exact purpose. So of course we're going to recommend membership. In the midst of this digital revolution, it is imperative to align your organization with others  looking to preserve the future of the industry. You can continue to enhance your technology as part of the plan, but at the end of the day... Did you provide your online customers with a memorable experience? Were your online customers able to enjoy your virtual facility without unnecessary inconveniences? Most importantly... will your online customers be back?

Current Position
In our review of the auction data that we have accumulated over the last 5 months, we have made the following assessments: Across the board, the ratio between online attendance and online participation is extremely low. Increased attendance, for the most part, does not impact the percentage of participation as it should. Active bidders tend to be the same core group week to week with a small variation of random participants. Meanwhile, there also seems to be a dedicated group of observers, or at least, attendees with ongoing records of low to no participation. 

What Now?
Collectively, we are developing the standards that will serve to transition the traditional auction model to the virtual space. Our goal is to open the discussion with Auction Owners, Officers, General Managers, and anyone else involved in the decision making process. You have read my personal point of view on auction fees, and online incentives. I would like to know where you stand on both of these issues. Please respond with answers to the following:

1. What is your point of view with regard to online fees?
2. What incentives do you currently provide, or would you be willing to provide to online customers?

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AuctionVcommerce is followed by National Consignors and Auto Remarketers on LinkedIn. We provide insight, resources, and thought provoking articles to build awareness and credibility for the online auctions we support. Click Here to Follow Us.

Stabilizing your Online Auto Auction

You've come to the realization that you need to 'step it up' when it comes to the online... So what's the plan? Hire sales people? Well let's take a look at the effectiveness of that strategy with a short visual exercise...

Envision standing in the middle of a room, and the floor starts caving in. Would your first instinct be to get a new ceiling? 

What do you know about the online dealer demographic? I'm not talking about your lane customers... I'm talking about Internet customers you have yet to acquire, or perhaps those who have attended your online sale at one point, but did not have the confidence to return. Where are they now? Are you tracking your online activity? Or your online relationships? Have you outlined your online marketing strategy? What type of experience does your online customers receive at your auction? What do they expect? The thing is this... you could get 500 new dealers to your online sale tomorrow, but if the overall experience is not satisfactory, then you just turned off 500 customers. 

I asked 10 autoremarketers if they had an Amazon Prime Membership. Of the 10, nine responded with 'yes'. What does this tell you? Hopefully it tells you a couple of things: First, the world is changing, and the traditional way of thinking is becoming far outdated; Second, it is possible to create such a high level of online confidence that customers are willing to pay for shipping on items they have yetto purchase! Why? Dedicated online customer service, transparency in the transactional process, follow-up strategies, and personalization. In other words, Amazon, has built a foundation for conducting online business through listening to the needs of their customers, and creating an environment that incites participation. Now it's time for online auto auctions to do the same!

Just as a new ceiling will not resolve the fact that the floor beneath your feet is crumbling, adding new sales people will not build a stronger online business. The floor, just like your online business, must be reinforced. The structure should be conducive to growth. Confidence comes from knowing that every step you take is supported.

Here is an assignment: Obtain an online report to show how many customers have attended your Internet events over the course of the last year. Next, run a report to show how many customers attended your last online event. If your weekly number is less than 10% of the annual number, and your growth pattern looks like nothing short of the screen of an active EKG Monitor, then you may want to consider AVC Membership.

If you haven't heard, AuctionVcommerce is a cost-effective way to implement an online infrastructure that provides the supplemental technology support, customer service, marketing, activity monitoring, relationship management, and peer support necessary to achieve the online credibility for a virtual expansion. Technology, as well as the rules for online commerce, change frequently, requiring a dedicated focus from an industry-wide perspective. AVC is building the network, engaging the customers, and setting the standards to advance the auto auction industry into the virtual space using the same principles that made the brick and mortar auto auction a monumental success. 

Although, while the principles may be the same, the approach is entirely different. The online initiative requires a global perspective. A small business mentality will keep you where you are. Online customers are not concerned with speaking to auction management unless a serious issue occurs. A solid online infrastructure will provide all of the resources necessary to conduct business from within the virtual environment. It only makes sense that online growth is heavily reliant on your ability to operate online. The fact of the matter is, technology is becoming a second language. The more fluent you become, the more online success you will achieve.

To learn more, visit www.auctionvcommerce.com

"Think Outside the Blocks!"

Auto Auctions - Meeting the Online Expectations

It used to be that B2B solutions varied drastically from the world of B2C. The notion that businesses had a very 'narrow market' served to justify the absence of marketing and/or an investment towards customer research and development. Well, that belief system may be true in the physical world, but the virtual realm has leveled the playing field. Still, some industries remain in the dark with regard to envisioning  Internet success. Wholesale Auto Auctions, specifically, despite providing an opportunity for customers to acquire vehicles online, do not seem to view much potential in segmenting and catering to virtual prospects. However, the costs associated with providing online technology, the strength of targeted online searches, and the growing expectation of customers to enjoy a personalized online experience has prompted several auctions to review their current solutions. 

 A great misconception many auctions share is the belief that online customers are satisfied, simply because they do not receive calls stating otherwise. Reports demonstrate another story. One auction had over 300 online attendees over the course of a year, but seemed to average 15-25 customers week to week. No one can really say what happened to the other 275-285 customers, but I can tell you this... Many online customers report the inability to reach anyone at the auction, much less get the support they need on sale day. Yet, several auctions continue to promote their online events in an effort to obtain more customers despite the lack of a retention effort or having a customer service operation in place. For the sake of visualization, picture holding a strainer under the faucet and waiting for it to fill up. Even as a thought, it's a very frustrating concept.

Whether  an auction has 2 online attendees per week, or 200... the potential for growing this segment is higher at this very moment than it will ever be. The industry is evolving, and the pressure to adapt is going to rapidly increase as the next generation of buyer-reps, raised on technology, begin to fill the positions once occupied by generation 'kick-the-tires'. These individuals will never step foot in an auction. Meanwhile, many alternative online solutions will have emerged with the strategy to eliminate the auction process altogether.  Auctions with an unfriendly approach to online facilitation will, without a doubt, serve as the best advocate for these type of platforms, and the impact will be felt by the auto auction industry as a whole.

The irony is that, while each auction continues to look to more technology for their solution to online growth, the answer actually lies in the most traditional concept of business development... customer service. I have always preached the philosophy of humanizing the live Internet auction experience, letting customers know that they are working with people, not computers. However, I find that I need to now convey this message at the other side of the equation. The unseen customer is not familiar territory for the traditional brick-and-mortar auction, nor does this client meet the profile of the typical auto auction demographic. If this was the case, we would not be having this discussion.  So how does an auction build a relationship with, and meet the needs of a customer it has never met? Well, much in the same way they would build any clientele - dedication to understanding the customers' needs, and delivering.

The Internet, itself,  provides a low-cost expansion opportunity for any business willing to play by the online rules of customer engagement. Companies are implementing online strategies such as personalization, where customer behavior is analyzed, and a response is generated based on activity. The most popular examples of this effort are the communication attempts that follow a transaction - most notably, the request for a review, or product suggestions based on prior purchases. Companies like eBay, and Amazon have mastered this initiative. In the Online Auto Auction industry, auctionVcommerce.com (AVC) is pioneering the effort for obtaining customer feedback, and building the auction's online reputation. AVC is building the bridge that connects auto auctions to online customers.

Then there is still that matter of immediate support...

With the use of marketing platforms, credentialing services, simulcast, and other 3rd party vendors, the layering of technology could force an auction customer, or the auction itself, to make up to 3 support calls for a single issue.  Most vendors will provide support for their technology, but reference the next vendor to continue to identify the resolution. Alternatively, auctions that have elected to provide dedicated online support via an AVC Membership have improved customer acquisition and retention efforts by managing online support throughout the entire process. In addition, AVC maintains support channels that are accessible to auction customers 24/7. With a broad scope of technology across the industry, AVC can proactively address customer concerns, and help auctions to operate more efficiently. Most importantly, AVC is a shared-service, which allows the auction a cost-effective approach to building the online foundation.

At the end of the day, it is all about meeting the expectations of the online customer, and it should be an industry-wide effort. The technology companies can provide the algorithms, email blasts can be sent to the mass mailing list stored in the auction database, but ultimately, the experience will have the most impact. In the words of Maya Angelou...

“People will forget what you said, 
people will forget what you did, but people will never forget how you made them feel.”

Online Auction Customers: Better Support for 2016

When I first began consulting with auto auctions regarding their online initiative, as a regular practice I would audit the customer experience. Many times I found that lane bidders were given the upper-hand when it came to close decisions, and I expressed this concern to several auctioneers who would explain,"When it comes down to it, I'm going to give it to the guy who got up this morning, got in his car, and drove down to the auction."  Even the auctions were discriminatory in that they imposed a fee for purchasing vehicles online, and provided very little in the way of technical assistance during the sale. In fact, most auctions had built a dependency on the technology vendor for end-user support despite the fact that there were many user-related issues that did not stem from the software. The universal perception seemed to be that the Internet provided existing customers the opportunity to be lazy. Some auctions also believed that it was a direct competitor to their lane business. For these reasons, little emphasis had been placed on allocating any further investment or resources towards the Internet as a potential opportunity for a new business segment.

Without question, the adversity towards the Internet stemmed from technology being introduced without the establishment of a revenue-generating, online business model. Simply stated, the cart was put before the horse. Without any guidance, the auctions were left to perceive the Internet as nothing more than a value-add. Basically, it was 'there' if customers wanted to use it, and if we're being completely transparent, in most cases it was a requirement imposed by larger consigners. While I have seen some improvement over the last couple of years, there are still many mountains to climb in this area.

Customer Service is a major artery when it comes to the anatomy of a business, and it is imperative that auctions looking to grow their online segment provide an effective solution for support. The goal of the virtual expansion should be to attract new customers that are not in the geographical proximity to drive to the sale each week. In this endeavor, auctions need to make the effort to learn more about this demographic, and appeal to their level of comfort with regard to participating online. In order to do that, the auction should be collecting data, and structuring an online promotional strategy to funnel customers at a National level. However, this would require more staffing, and a significant marketing budget.

With AuctionVcommerce, auto auctions now have an affordable opportunity to establish a sound online infrastructure complete with customer service, modern support channels, and marketing. The estimated cost for a solitary effort, including the software and personnel would be anywhere from $3,000-$7,000 per month. However, with an AuctionVcommerce Membership, the cost is only $600/month. In addition, AuctionVcommerce has the collective view of nearly allonline auction technology, and actively works with vendors to identify and troubleshoot issues. For auctions using the same technology, this means a preventative approach to sale day catastrophes that could result in the loss of online customers.

The bottom line is that the virtual world has it's own set of rules and requirements for developing online success, and the upcoming generation of Auction Customers are being seduced with technology. AuctionVcommerce is the solution to help Auto Auctions meet the online expectations. If you are an auction interested in becoming a member, or a dealer interested in buying or selling through our network of online auctions, call 855-998-8266 ext 700 for more information. 

Why Wouldn't Auto Dealers Source Inventory Online?

I am a huge fan of the auction arena. The energy... the excitement... the sense of urgency to get the bid in... I get it! However, I'm also a huge fan of efficiency, opportunity, technology, and, well... heat!

Old-school mentality dictates that purchasing vehicles requires the buyer to be able to kick the tires, listen to the engine, and physically touch the unit. I used to have the same mentality when it came to shopping for clothes. Now I do about 50% of my clothes shopping online. With the amount of data available, and with the feedback from other customers, I am becoming more comfortable making online purchasing decisions. 

The point is... the online opportunity cannot be ignored. The comfort level is increasing. While the traditional auction experience is great, there are times when convenience and selection are going to take precedence. Condition reports are becoming more sophisticated, and auctions are working to provide a better online experience. Logistics companies are improving cost and efficiency with regard to transportation, and simulcast delivers the energy of attending a live sale. As the climate changes, extreme temperatures may make bidding from a heated/air conditioned office seem a lot more desirable. At this time of year in the northern part of the country, you can kick the tires, but the auction is not responsible if you lose a toe! (Pretty sure that's written in the policies.)

I am not attempting to persuade everyone to leave the auction lanes just to bid online. I am merely pointing out that online auctions are a great option for sourcing inventory, and nearly every auto auction in the country is currently enabled to provide this convenience. So the question remains... Why wouldn't an auto dealer source inventory online? 

I would love to hear your responses below, and if by chance, you are looking for an online auto auction in any particular geographic area, click here to search now.

The Online Impact

While the Internet has become as much a part of our lives as... well... breathing... Believe it or not, there are still some who feel that online sales will never become a viable source of revenue for their business. Several years back, I probably would have said the same thing when I opened my little cafe in downtown Rochester. My hours were 7am to 3:30pm Mon-Fri, and parking was a nightmare. I had to rely on walk-ins from local businesses, and I was surrounded by many vacant buildings. I did manage to secure some small catering jobs, but at best, revenue was between 9-10k a month. Food costs were nearly half of the revenue due to the fact that I had to maintain a minimum order for delivery. At that rate, I was surely destined to go out of business.

Like most entrepreneurs, I worked long hours during the day, and spent the night worrying about how I would survive. However, the anxiety became a catalyst for what I now know to be an 'SEO' strategy. SEO stands for Search Engine Optimization. (More on that later.) For now, just know that I was spending countless nights on my computer listing my website on every directory I could find. I created social media pages, and I used very descriptive keywords to engage potential customers. I didn't have much of a marketing budget, nor would it have made sense to market to a place that had so many geographical limitations. So every night, I just kept listing, and praying for a miracle!

It was probably close to a year before I really felt the impact of my efforts. You would have never have been able to convince me that I could've achieved the results that I did. My business was steady at around 12-13k a month, and I was beginning to receive random calls for catering from out-of-town visitors. At the time, I thought, "Well, that's a nice little bonus." Soon, I began to receive more calls... and then more calls...  A tv show by the name of 'Hoarders' was scheduled to film in the area, and they needed breakfast, lunch, and dinner for 2 days. Another production company called because they were shooting a movie in town for 2 months, and needed breakfast, lunch, dinner, and craft services. All of a sudden, my 12k/mo business had skyrocketed to $30k. How could I have possibly won these jobs over some of my more established competitors?

Remember that SEO thing I mentioned earlier? What I didn't realize was that I had been doing something my competitors weren't. I was establishing myself as a credible business, online, to potential customers all over the country. While back-linking, and maintaining my website, I had been building my domain authority. I was engaging my customers on social media, and managing my reputation.  I was coming up at the top of organic searches for caterers in the area, despite the fact that other caterers may have been in business for 30 years! I had built an online foundation that I would have never thought possible due to my surroundings, but because of the Internet, I was able to attract customers as far away as California. 

The Internet provides opportunities that could never be realized through traditional business models, and for many who have been in operation for more than a quarter of a century, this perspective may be a little out of the comfort zone. Therefore, many business owners are still clinging to 'what they know' as a measure for maintaining stability. Meanwhile, a digital generation is emerging. So my advice to any business owner still standing in favor of 'old school operations' is this... Go ahead and keep your feet planted firmly on the ground... but your business on the other hand, should be planted firmly in the cloud!

Could Your Online Managers Use A Little Help?

What is it costing you to maintain your online auto auction? How much are you spending on the technology? The clerks? The CR writers? The integration services? Are you projecting a return on your investment, or simply folding the cost into your brick-and-mortar operation, and calling it a day? Are you waiting for 'someday' when everyone is just going to catch on, or do you have a strategy for growth? Finally, once you reach your growth potential, is your business prepared to scale?

It's a common scenario... one Online Manager... 20 different directions. Without dedicated support and an Internet marketing strategy, your online business may never scale to reach its full potential, much less pay for the cost of the staff and technology it takes to run it. Vcommerce has found a way to minimize the cost of adding additional resources through a collective approach that will serve to incite buyer confidence throughout the industry. In addition, it allows your auction to become part of a National Online Inventory Distribution Network actively represented by our team.

Auto Auctions have been asking for support, guidance, marketing services, training, and tools to compliment the online initiative. These are the seeds from which Vcommerce has grown. Still, there is a question of cost. So here's the question...If you could pay nearly the same price it costs you to run one lane on simulcast to turn your Online Manager into an online team, and market your business nationally... would you do it?

Learn More... 855.998.VCOM (8266)

'Think Outside the Blocks'

It's pretty obvious, at this point, technology is here for the long haul. More dealers are buying online, and wholesalers are beginning to purchase white-label marketplaces. Whether or not you agree or don't agree that the trend will continue, really has no bearing on the outcome. The only thing the industry can do at this point is 'think outside the blocks'.

Future-proofing your business allows you to be prepared for any scenario, including the 'Online Apocalypse'. This means, if you are an auto auction, then you need to work at being the best online auto auction. If you are a buyer, you should expect the same level of customer service from the Internet facility as you do from the brick-and-mortar. Be sure to communicate your experience if the auction falls short, and give them the chance to improve.  If you are a seller, you should research and understand the best practices for representing your inventory online, or simply ask the auction for guidance. 

The 'online auto auction' is not an out-of-the-box solution. It is a new business model that requires the establishment of a good workflow from vehicle intake to disposition, an internal commitment to education & training, customer confidence built through the development of a strong online reputation, and increased visibility in the virtual space. It is the combination of effort from the auctions themselves to those they serve. At this crucial point and time, it is the old school meeting the new. So rather than proceeding into the inevitable with reluctance, consider this: Now is the time to leave the footprint of the past. The industry built on a solid foundation of integrity and community is evolving. You all have the distinct opportunity to embed the principals that have governed the success of your businesses for many years...

Embrace it.

The First Ever... Online Auto Auction Review Site

Reputation Management is a key component to conducting business online. That being said, this Labor Day (September 7, 2015), Auto Dealers and Consignors are going to have the opportunity to provide feedback regarding their experiences with buying and selling vehicles on the internet through auto auctions all over the U.S. and Canada. AuctionVcommerce.com will make its debut as the first, and only, online auto auction review site - connecting dealers, consignors, auto auctions, and technology vendors. in an effort to help the online auto auction industry reach its full potential.

Brick-and-Mortar Auto Auctions have always carried a reputation for providing their customers with a business modeled after their own desires. The common theme being, "This is YOUR auction." When technology was thrust upon the industry, it included every button necessary to complete a transaction. What it lacked was a method for bringing the traditional customer focus into view. 

AuctionVcommerce.com is a platform designed to bridge the gap between the auctions, and their online customers. It is a respectable arena where auction customers may leave positive or constructive feedback. Auctions will have an opportunity to make improvements based on customer reviews, and will have access to a wide selection of training, support, and management products geared towards setting and accomplishing online goals. Profile matching will help dealers quickly locate online auctions within their desired geographical range. The overall objective is to improve customer confidence, encourage online participation, and increase the number of qualified online venues available in the virtual space.

The launch of auctionVcommerce.com is the first in a 2-part introduction of Vcommerce - an organization focused on developing standards for the online auto auction community. The subscription features will continue to be rolled out as we gear up for the Vcommerce Grand Opening Launch at Used Car Week in November. Interested in tracking our progress? Feel free to follow us on LinkedIn as we provide continual updates: 

https://www.linkedin.com/company/vcommerce-inc-

Auto Auctions: The Online Entrepreneurs

The auto auction business is definitely one that is rooted in traditional values, and let's be honest... it is an industry that did not exactly swoon at the idea of selling vehicles online. Of course, in their defense, it had more to do with a firm handshake, kicking tires, and interacting with customers than having an aversion to technology. The auto auction business simply has a heart. 

Needless to say, crossing the bridge to the virtual space, although it has almost become a requirement, has not been an easy transition for companies that spent many years developing their close-knit communities.  There were never any real guidelines, and the lack of success, even at this point, has done nothing to alter the original belief system. Yet, the technology keeps moving at lightning speed. Meanwhile, auto auctions are working hard to maintain their old-school brick-and-mortar charm while putting forth an effort to repel the prediction that, not being online, will mean 'certain death' -so to speak.

For some auctions with the infrastructure to support this virtual expansion, the change is not a threat to the operation. However, if we're talking about an auction where the General Manager is out checking in vehicles because a lot person called in sick, then posting event highlights to social media is probably not going to be high on the operational priority list. That being said, the majority of auctions are beginning to spill more of their resources over into their online facility in an attempt to future-proof their business. Long-time auction owners and Managers are becoming online entrepreneurs. The evolution is happening right before our very eyes. So if you're an auction owner, or a General Manager, I just have one question for you... When it's all said and done... will you be ready?