Category Archives: SEO

Automotive News stats & ranking  “TOP 125 DEALERSHIP GROUPS”

Top 125 Dealership Groups front page

        I’ve yet to find someone who has been able to explain the claims made by the publication  “TOP 125 Dealers for 2013.” Actually it is sponsored by a vendor and when you say sponsored it sound like the stats were compiled by the publication and the study was sponsored by the vendor.  Being in the consulting side of the automotive industry and after Slicing, Dicing & analyzing over 500 dealers including some of the largest groups in the country, I found it fascinating that some of the larger groups and dealers, who are hands down larger and better performers are not in the list. It intrigued me to find the real stats behind the scene, one of my dealers who I have visited and conducted training, the Classic Chevrolet of Grapevine who are the N0 1 dealer in the nation for last 8 years running and I witnessed them selling over 140 New Chevrolet in one single day, which was not even a record day for them.  Not only are they the No. 1 dealer in new cars sales, Classic Chevrolet officially Adds #1 volume GM Parts Dealer title as well. They stock over 7 million dollars in inventory and have about 50 employees to handle the parts and customer requests. In 2003, their parts department was number 76 in the nation. From there, Classic Chevrolet reached number 2 in 2012. Today – in early 2014 – They are the number 1 volume GM parts dealer out of approximately 4,000 GM dealers in the United States. If I give you their mind boggling stats for the used vehicles sales you most likely will scratch your head as to how do they do it? That is topic for another day.

  • Who is No 1?

Classic Chevrolet of Grapevine and the masters orchestrating this huge operation Mr. Tom Durant and Hagen Durant are geniuses in disguise and my hats off to them. Yet they fail to make it to the top dealers list!!!

classic image for Tom and Hagen Durant with awards
There are other dealers and dealer groups, that I know personally, that fail to make it to this list despite the fact that  their successful operations are far better than most of the dealers and groups on the list. Some of these dealers are not interested in divulging their private information for the sake of keeping a low profile while laughing all the way to the bank and others quite frankly were probably not informed to submit the information, since they are not the privileged client of the vendor who is compiling the information for the sake of showcasing their own clients. If all the dealers participated it may not be the case.

  • True Benchmarks

Keeping the above in mind Automotive News should have a disclaimer that their report is an advertisement.  If Automotive News is a credible news authority for the automotive industry, it should be totally unbiased in reporting the news or any stats since most of the industry owners, executives, managers and public who are investing money on publicly traded auto groups are looking at this information and making serious financial decisions. There are some dealer executives who are making these reports as a benchmark for their operations. On the other hand, if and when a successful dealership’s manager offers these numbers as a bench mark he or she will be immediately replaced for a real manager who can and must outperform above and beyond these numbers. I would say it can be a starting point for some real performers.

  • Who is competing here for the Top Spot?

Let’s not forget that currently NADA “National Automobile Dealers Association” is quoting more than 17,000 new car and truck dealers with approximately 37,500 separate franchises. This top 125 dealer list is not reflective of the top dealers doing business in USA. Let’s not kid ourselves and read between lines to see what is the real information presented to you.  Now we understand that the list of these TOP 125 dealers and the dealer group are not the real one, but since it is out on the Internet I wanted analyze it to see how they are performing just among themselves in their own little world. If you study the breakdown you will find it fascinating in a lot of different ways and I would like you to just see from statistically driven point of view.

  • Where do we fit the sales numbers for wholesale vehicle!! Not in RETAIL?

Auction or floor sales

At this point, I would like to highlight one point “WHOLESALE” which is not retail. I do not believe that we should be taking account for the wholesale units as success performance indicators for a dealership or a group. Actually high amount of wholesale should be taken as a negative impact for a performance indicator. Since when is wholesaling a vehicle is considered to be a good thing?   The dealers who are buying your vehicles at auction are taking those vehicles preparing it and selling right under your nose across the street for much higher rate of return.  “If you are serious in taking a wholesale unit as a performance indicator than I would say that Manheim Auction is wholesaling over 10 million units a year with over 50 billion in revenues and they should be the number one dealer in the world”.

  • Seeing the forest from the trees

Let’s talk about another fact before I go into the detail of the analysis, most of the dealers will agree that just selling more cars means nothing if they are not making money! Anyone can give away cars and that is not rocket science. Similarly if a group sells the highest number of cars doesn’t mean that they are the top dealer especially if their per location sales, revenue and profit is below average. For example if you take the top performer dealer group in the list, The Auto Nation Inc. when you see the numbers in the report  states that The Auto Nation Inc. has 228 Roof Tops, Sold 292,922 New Units Average 107 Units Per Roof top per month and if you go back to the top of this article about Classic Chevrolet who sells that many vehicles in a single day not a month.

  • Pre-Owned Vehicles Sales and Profit a strong relationship.

The Auto Nation sold 204,572 used vehicle averaging 75 units per month per roof top.  Now these are the stores just selling and focusing on new vehicles only. Look at your average profitable dealership across country they are selling more pre-owned units vs new vehicles by far and making money hands over fist. In the industry it is well known that you can’t really make huge profits on new vehicles compared to that special pre-owned vehicle which is unique and only you have it. But if you don’t have that vehicle, how would you do it? Back to wholesale, since the same report shows that Auto Nation has wholesaled 70,742 vehicles. We all know who the buyers were at the auctions – the other dealers were the buyers at the auction and they fetch up those units to sell them right across Auto Nation locations.  To be fair to Auto Nation they are not at the bottom in sending cars to wholesale, actually they ranked 29th out of this 125 dealers and the crown goes to  Fitzgerald Auto Malls ranked 1st.  Out of the list of 125 dealers for having the lowest number of units wholesale per location. The highest number of units wholesale was at West-Herr Automotive Group Inc. wholesaling on an average of 1,010 units per location or across 18 locations they wholesaled 18,177 units last year, if Auto Nation with 228 locations were to wholesale at the same scale they would have to wholesale 230,242 units while they only wholesaled 70,742 units. Back to my points – do not lump sum an entire group’s numbers to showcase the larger amount rather see how they are performing across board by per roof top. Like someone said “Seeing the forest from the trees.”

 

  • Can you tell fact from fiction?

At this time I just want to remind the readers that the original report is on the Internet available free to download. It may be a publicity stunt as usual to drum up new business by having a feather in someone’s hat. I have seen numerous times that certain magazines behind the scene partially or wholly owned by vendors who showcase their ranking or awards with great hype. If all the dealers are not participating or informed to participate, you will have more fiction than fact.  This reminds me of vendor, dealer rating and reviews sites. That is another topic and I have a great deal of information on; I will have a blog post especially dedicated to that aspect of our business. Transparency is great but how can you be anonymous and be a transparent at the same. It doesn’t work for me. In my opinion it should not work for you either. I will address that in another article fairly soon.

 

  • Automotive News, Is it a legitimate news source?

Automotive News site header

Automotive news is established and recognized as a legitimate and respectable source that is quoted by C-level executives across the country and across the world. According to Automotive News, “Automotive News is the nation’s pre-eminent newspaper covering the automotive industry serving vehicle manufacturers, suppliers, dealerships, marketers, and others allied with the industry since 1925.”

  • Read between the lines…..

Numbers and the analyses of the report, or slice and dice the report to read between lines: Now let’s look at the report and dissect it to determine the biggest gainer and the losers on ranking among their own little world of 125 dealers. I have strictly taken their numbers as it is published in the report available on the net. Below you will find a quick list of gainers and losers. You can also view the dissected report from this link on Google Drive. You can also view the original report from by clicking this link.

 

  • Biggest Gainer in Ranking:

Bommarito Automotive Group

Bommarito Automotive Group: was ranked 68 by Automotive News by our recalculation and positioning it ranked 6th in the group by gaining 62 positions or ranks in the group. Dealer Website powered by Dealer Track Interactive

 

Biggest Drop in ranking:

Bergstrom Automotive Group

Bergstrom Automotive Group was ranked 67th by Automotive News, by our recalculation and positioning it ranked 118th dropping 51 Ranks / positions in the group. Site powered by Dealer.com 

After a quick analysis over the week-end, I found the results very interesting and I wanted to share them with my network. This information is for your entertainment only and not to grade any provider or company. I would love to hear from you if you find this interesting and if there was another twist that I missed. Even though I have prepared these numbers with care and interest, but I request you to do your own research before making any decision and if you find any errors please let me know and I will update it as soon as I can. Do not use this report to make any financial decision, but if you have a question you can reach me via email at wp.ranking@dealerstechnology.com.

Partial list of Top 125 Dealers and Ranking by AN & Updated by Rafi Hamid

 

Quick info on my next blog: I have come across my next article, we see all the dealers are struggling with reports and reviews for vendors. Just as you know that a shrewd dealer can manipulate his or her reviews & CSI, I have seen vendors and some of the rating sites for vendors are playing numbers and review games. I have been associated with Drivingsales.com as a founding member, on a Board of Directors and have seen the process in action. I have also seen Dealer Rater and other review sites and know how they market their product. What is in it for you and really what is at stake? It is fascinating information that you do not want to miss. Keep your eyes open for my next posting. Follow me on Twitter to stay in touch.  https://twitter.com/AutoExecutive      

Happy Motoring,

 

RafiHamid
“AutoExecutive”
Rafi Hamid VAuto Image

Advertisements

Blogging for Beginners

Blogging for Beginners

How the Automotive Business can benefit from Blogging

Blogging is a good way to optimize pages for the search terms you would like to rank in the main search engines.  Content can be text, videos, audio, pictures, animation, etc. If it can be consumed through digital media, then it’s content. In addition, blog content generates discussion, discussion generates movement, movement catches attention and attention improves search engine rankings.

As much as SEO algorithms change (and they change a lot), at the end of the day the core components remain. With that known, and mixing natural tendency to visit a blog, optimizing articles for important keywords is and always will be essential.

Now that we’ve gone through all that I want to discuss some things to consider in 2013 when blogging. First, try writing something that is guaranteed to attract interesting discussions. (and more on that here) Another would be to create a video course on a website, like Udemy. Evergreen your existing content, refresh it and create a course. Then create new content that talks about the course. Not interested in a course? Then create a short video series, post it on YouTube and then on your blog, with a transcription. That way you have two forms of content to absorb in one article. Interview partners and share the discussion in a blog article, or host a local meetup and write about it for people to say “next time I want to go!” Use visual marketing weapons like cartoons and infographics.

Blogging in 2013 can be the same as blogging in 2012, but I think bloggers should keep taking their content to new levels.

Fun Facts about Google

What is it like to work for Google?  The company employs just over 34,000 people.

Internet

Google Stocks

 

Google’s stocks are soaring and people are baffled how much the company has grown in recent years.  Some researchers are predicting Google’s stock shares to reach $2,000 a share!

The first storage space for Google’s servers was made out of legos.

Google Facts

Google Legos

 

Google rents goats.  It rents goats from a company called California Grazing to help cut down the amount of weeds and brush at Google HQ.

Google Goats

Google Goats

The operation of 200 goats (plus herder and a border collie) is kind to the environment, and as Google puts it: “A lot cuter to watch than lawn mowers.”

Google is a super dog-friendly company. It proudly names “company dogs,” like Yoshka (described as a “free-range Leonberger”) pictured above. Yoshka accompanies Urs Holzle, senior VP operations and Google Fellow to the Googleplex. Less senior staff are also allowed to bring their dogs to the office.

Google Dog

Google Dog

 

According to Google’s “Dog Policy”, one indiscretion too many on the Google carpets, or aggressive behavior, means Lassie will have to stay at home in the future. Strong bladdered and friendly canines are more than welcome across the campus.

Unfortunately, cats are not quite as welcome. Here’s an excerpt taken directly from Google’s Code of Conduct: “Google’s affection for our canine friends is an integral facet of our corporate culture. We like cats, but we’re a dog company, so as a general rule we feel cats visiting our offices would be fairly stressed out.”

Google has a Dinosaur.

Google Dino

Stan the Dinosaur

By all accounts, there are many wondrous sights to be seen at the Googleplex, but one of the most arresting is surely the gigantic T-Rex skeleton — nicknamed “Stan” after a “real” dino found nearby — that looms menacingly at Googlers in Mountain View.

Joining Stan in the unique campus decorations is a scale replica of the SpaceShipOne, enormous Android-themed models, pink flamingos, a large LEGO man, Google-colored phone boxes and grown-up size ball pits. One thing seems for sure — just like the company itself — life at the Googleplex must be far from dull.

 

 

 

Implementing Google+ Local

Google+ Local

Google+ Local

Auto Dealers

Google+ Local Replaces Google Places

If Google Places has been a method of driving online customers to your brick-and-mortar business, big changes are on the way. Google is importing Google Places into Google+ Local, and this means big changes for businesses and consumers who use the internet to find local establishments. This post is all about Google+ Local Optimization.

What’s in it for My Business?

Google’s algorithms consider many factors when ranking sites. The more web presence and reviews your company has, the better it will fare. When consumers look for a business in their local area, Google is happy to provide the information. When it can provide a great deal of usable information to the customer, Google is even happier. Google+ Local works on Smartphones as well – enhancing the user experience when they are on the road and looking for your business.

Enhance your SEO

Most businesses that have been around for a year or two already exist in Google’s database listings, including Google Places, and will remain in a list of millions of results when users search for the solution to what they’re seeking. Most of them (some estimates are as high as 85%) will choose a business that they found on the first page of Google’s results. By optimizing your listing with SEO, it’s possible to reach a sizable portion of online consumers and grow your market share in the process.

Summary

Google+ Local is designed with social networking in mind, merging it with traditional indexing methods. SEO allows consumers to target themselves as your audience. Following these simple steps to maximize the types of information your target customers can find in the search engine results page, you’ll discover ready, willing, and able customers because your company will be one of the first with a Google+ Local result they can find.

Breaking down Google Panda

Internet Training, Automotive

Google Panda

Well now that we know that the Google Panda update is no joke in the way it has affected high page rank websites and big brands, we need to be more cautious about how it can affect us. The question we need to ask ourselves now is how this new Panda algorithm will affect our link-building.

  • Links will never be the same. Google’s Panda algorithm has uncovered shady link-building methods such as JCPenney, Overstock.com, Forbes and more. It has also penalized low quality sites as well as spammy/scraper sites in their recent update. What does this mean for SEO specialists and link-builders?
  • Don’t stick to what Google deems as ‘low quality’ sites. For example, if you were someone who liked to go with article submission through ezinearticles for links back to your site, you have to think twice now that it has significantly dropped in ranking due to its reputation with Google as a low quality site.
  • Watch out for sites that are peppered with Google adsense, text links, or other advertising gimmicks. They are not really something that neither Google nor people would call ‘quality sites’. Get away from them.
  • Sites with little or no moderation are to be avoided as well. Especially if you can see your comment link approved immediately after you post it. Those sites are most probably the home of lots of outbound links and spam. You don’t want your link to be found anywhere near there.
  • How should you do your link-building with the Panda update?

Well, there’s only one real authentic way to build links – create good, quality content that people love and will link to. Write your heart out. Be interested in people and in giving people the things they are interested in. Create videos that will get viral and create buzz.  Link-baiting is a great way to go and chances are, Google isn’t going to penalize your unique content because of its value and authenticity.