The 10 car repeat customer.
Dealerships that have a large number of repeat and referral customers regularly see customers who have bought five or 10 cars from them over the years. When a customer like that comes in to our dealerships we tend to hold her hand, love bomb them and generally do whatever it takes to keep them happy.
But for some reason wholesalers, who are equally important to your profit centers, are not treated with the same level of respect. Many of them have bought 10 or 15 or even a hundred cars from you over the years but sometimes we let our used car managers treat them like third class citizens.
Wholesalers Deserve Transparency Too?
Before he died, my dad taught me a profound piece of advise. He said, “Why Lie when the truth will do.” Those words became my personal mantra. There were so many times when a lie would have been easier but, the truth is way more powerful.
Now more than ever transparency and honesty are a must in a successful dealership. Lets face it, lack of honesty in our industry back in the 70’s-80’s led us to be one of the least trusted industries. The ole’ fat tie and checkered pants salesperson was the poster child of dishonesty.
That has changed, dealers are respected and a career in the car business is truly something to be proud of.
Then Why is it OK to Hide Things From Wholesale Buyers?
At “As Is” auctions and bid sales we have become accustomed to unscrupulous dealers not disclosing major issues and trying to catch wholesalers off guard as they pawn off their mistakes. In the retail world, this “AS IS” non disclosure resulted in the state slapping the Lemon Law on dealers. But for some reason we think it is OK to continue this practice on our wholesale buyers.
In previous articles I speak of “Bidder fatigue” and its impact on the amount wholesalers bid. What is the impact of a wholesaler feeling like the dealer screwed him out of his hard earned money? Will they ever bid again, and if so, will they ever bid as aggressively. I don’t think so.
Burn me once, shame on you, burn me twice shame on me?
I have seen buyers walk away from a lane sale when they see an unscrupulous used car manager take the podium. Wholesale buyers are on the look out for managers misrepresenting their cars. They simply stop buying from that dealer or worse yet, bid lower than ever before.
“I bid low on BLANKED OUT’s cars as a sort of insurance against being f&^*ed.” Said one very successful wholesale buyer. “I have been burned so many times, I just pay 4-800 less on his cars.”
Experiencing Automotive Wholesale Losses? Ask What Your Honesty Policy Is?
Dealers? Do you know what your policy is when it comes to disclosure? You maybe losing valuable wholesalers because your not setting a full transparency policy with your auctions.
Disclosure brings more bids!
In our bid sale auctions at AuctionSimplified.com we have discovered the more you disclose the more bidders. Weird, right?. Well not really. When buyers feel confident, they bid more often and higher.
Bottom line, let them know what you know about the car. And remember, why lie when the truth will do.