An Open Letter to Autotrader-Part 2-The response
I am truly humbled by the fantastic response to my last 'Open Letter to Autotrader' sadly however there has been no reply from Autotrader, so I thought I would have another go..........
Dear Autotrader,
More than a week has passed since my last letter and while you have read it (many times) you refuse to acknowledge it.
I would like only two things from you:
Acknowledgement of my Open Letter. I know you are fully aware of its content. In fact, I’m quite flattered that it is the most talked about letter in the motor trade for many a year.
Secondly I would like you to publicly admit OR deny (at your peril) that you are about to monetise your vastly unpopular and unwanted Part Exchange tool that you have had on trial with dealers.
Not only are you going to force this upon dealers (your core customer base) to take it as part of a chargeable package but more worryingly you are about to enter the ‘cash for cars’ market. You are about to exploit your position of trust as the largest classified portal in the UK by offering ‘Guaranteed' purchase prices to all customers who value their car. I know this as fact.
Buying these cars only to sell them back to the dealers via your new found auction partners, Aston Barclay, will mean that these cars will then incur Auction indemnity fees, additional transport PLUS logistical costs not to mention your profit margin.
This is market manipulation as retail prices are forced upwards to the detriment of consumers. The private buyer ends up paying more and at the same time you are squeezing margin for dealers, who, I remind you, are your core customers.
Effectively this means that you are ‘biting the hand that feeds you’, taking away the opportunity for dealers to buy cars via part exchange, which is a valuable part of our business model. City analysts are advising that you have told them you see this as an additional revenue stream, just as you said about 'icontrol'.
Reports that AutoTrader is a safe investment for pension companies, as reported on this morning’s BBC Breakfast news, have no foundation. Without us car dealers you will be unable to service your half a billion-pound debt.
So please ADMIT or DENY?
I, along with thousands of car dealers UK wide, the City, the mainstream media and your shareholders await your reply.
Yours sincerely
Jim Reid
Car Dealer Magazines 'Dealer's Dealer of the Year'
On behalf of the Car Dealers on TCD Forum & the wider Motortrade
Empowering Smarter Leasing Decisions & Salary Sacrifice Strategies with Data-Driven Insights
8yHi Jim, just out of interest who was the letter sent to at AT?
FIMI.MSOE. MIRTE , Eng.Tech. Alex McDonald Vehicle Sales Director ,Group Leader at Alex McDonald Utility Warehouse
8ySurely if we all stopped using A.T. they would come to heel?
General Manager Thames Motor Group
8yBavinder J. AMIMI worth a read
Helping Businesses Achieve Efficiency and Growth by Developing Custom Software Solutions | Software Development | Process Improvement | Innovative Technology
8yMaybe it's time for a change. A different option. Question how many car dealers are in the UK.? How many actively use AT? What are the current charges per annum ? Who would like to form a cooperative to negate the AT dominance? The might of many can be greater than the power of 1!
Managing Director
8yThe part exchange tool gives the customer an opportunity to get a guide price for their vehicle, it also in my opinion gets more customer interaction. Although the guide price is low, it does give you the opportunity to gain a lead and offer an explanation to the customer on price. Customers physically have to turn off the valuation tool for your car not to be advertised, nobody does this! Autotrader is expensive, but at the same time is the market leader and for our business creates enough leads to cover these costs. Evolving and trying new things can be helpful and beneficial to retailers and in some cases it is moving with the times or sticking with the past that people find an issue with. Personally I prefer options and choice of things that might work and then decide whether I want them as opposed to having no choice. Car retailing changes, online marketing changes, it's a case of going with things, some do some don't, make your choices based on what works for you in your location, areas are very different and make them choices without getting left behind. Adapting to change can be hard but without it there is no progression. As long as the return for your investment is paying then something is working