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Wednesday
12Nov2008

New Reality - part 10

The Colonel made a thought provoking point the "technological jacket" can create mistrust and skepticism. Perhaps he forgot that dealer groups need all the systems to control the activities in the dealerships. Lets continue our conversation.

Q- Could it be the advent of the dealer groups have made the "technological jacket" widespread?

A- Without technology dealer groups would not be a viable business model, and there are other factors especially the idea of maximising profits in the showroom.

Q- Is there more?

A- There is always more, the technology is opaque to the customer, a sense of clarity is missing.

Q- Clarity?

A- The customer is empowered by information disseminated by the manufacturer, and the dealer, as well as information gathered from social media sites. Suddenly in trying to do a transaction it becomes opaque, everything is grey, and challenging to comprehand.

Q- If the customer is informed and empowered it should be clear and understandable.

A- I agree with you guys, it should be, but its not transparent or clear. There is a chasm that is not bridged or facilitated at the "retail level". Although the dealer thinks that he is facilitating the transaction, in reality the dealer is facilitating his internal operation.

Q- Are you saying that at the retail level the customer encounters a technology jacket that is not relevant to the customer?

A- Exactly, most of the systems and software are totally counterproductive and opaque to a customer.

Q- The customer is empowered and at the same time overpowered by the internal systems / technology jacket at the retail level.

A- Exactly!

Q- Perhaps the "retail level" does not grasp this aspect?

A- They do not grasp? Or is that they fully understand? Interesting point!

Q- If it would be more transparent with clarity?

A- It would be much easier, simpler, enjoyable!

Q- The retail level could be concerned of making less money in the showroom?

A- Or they could make more money by removing a few layers of opaqueness and installing a few layers of clarity.

Q- More money for whom? The dealer?

A- Yes more money for the dealer, and better value for the customer.

Q- Are you sure?

A- Yes!

Q- Lets review here for a moment? The industry will shrink, will simplify, and will have increased clarity at the retail level.

A- The industry is inexorably shrinking as we speak, and some are desperately looking for lifelines. It will have no choice than to simplify we covered the points. At the retail level it must become more transparent to the customer, with increased clarity. I sound as if I'm repeating myself.

Q- These are general guidelines and some folks are ahead of others, and others behind.

A- Isn't that what its usually all about, different stages of evolution for different folks. Although evryone has room for improvement.

Q- You do realise that its very competitive especially at the retail level, folks in retail need all the help they can get and then some.

A- Yes, its very competitive, its aggressive, and ideally you would need to be crushingly superior to make a difference in an environment of product and often price parity.

 

If you have opinions, want to share your thoughts leave us a comment. If you want to see the entire series just scroll down.

We will return is a few days.

 

 

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