"It is our belief that dealer associations are in the unique position to offer the automotive dealer and consumer the best used car web site," said Chicago Automobile Trade Association (CATA) President Jerry Cizek. "And like most beliefs, it's born of experience," he adds.
"We're happy to report that we currently enjoy the clear and undisputed lead in market share in sites of this classification in our area. What we do definitely sells cars for our dealers and creates an additional avenue of access to potential customers. The high percentage of CATA dealers who are on our site also speaks to its success," says Cizek.
"I suppose I could blow a lot of smoke about how we did a massive research project and found the best route to follow, but I can't," he continued. "We made all the same mistakes a lot of other associations and businesses made. But over the course of three years we've learned important items that are applicable to any other dealer group web site. What we learned and how we implemented it are among the things that now make our site successful and productive."
He outlines his reasons as to why the association is best positioned to offer and maintain a used car web siteeven better than "the big guys".
They keep the price affordable. Associations are not in this to make a quick buck. They are looking to offer value to their members. They also realize that market share is paramount in this business.
"Where is the CATA with these two objectives?" Cizek asks. "We have far more dealers than our nearest competitors and our pricing structure has enabled us to hold down the prices of our for-profit competitors in the marketplace.
"This is among the most important factors of why associations should be involved in providing web sites for their members. It wasn't long ago that our members were being approached by vendors who would construct a web site with far fewer features than we have for a lot more money. How much? Many were over $10,000 each.
"With the packages we've been able to produce, dealers can now get a full-blown web site with weekly photographic updates of their inventories for between $450 and $800, depending on the number of pages. The high-buck vendors are now priced where we are because of where we are. We could quite literally close up shop on our involvement in the web business at this point and feel that we've been successful, simply by holding the price line down."
Associations are inherently local. For some geographically bigger state associations, this might not apply, but as a large metro association, CATA participants are confined to the Chicago market. And generally, with the exception of the hard-to-find exotics, that's where the customers come from.
"The other day I looked for a car on CarPoint and even though I confined the search to a 50-mile radius, I turned up a car in Maine," says Cizek. "I don't know of too many Chicagoans who will travel to Kennebunkport to buy a low mileage '98 Beetle. It's a hot car, but it's not that hot. By the way, DealerLocator identified 18 Beetles in the immediate area."
Association sites are not a buying service. They essentially help our dealers market their cars, plain and simple. We get their products in front of as many customers as possible. We use relationships in the Chicago market to that end, and promotion is important.
Promote and advertise creatively. Clearly this is not a "Field of Dreams" medium. If you build it, they won't necessarily come. Having a site and not letting anyone know about it is as good as not having a site at all. DealerLocator.com has built-in hard marketing dollars to promote the site though spot-buying in broadcast, outdoor, and print. But we've also augmented our marketing of the site in creative ways. Mention and use of the site is a stable of our weekly one-hour CATA radio show, "Drive Time," on ESPN radio. Thankfully, our segment is a popular one and with some creative partnerships. We were able to take the load in the area and we maintain it.
The CATA has formed a marketing alliance with the Daily Herald newspapers, and other newspaper groups have contacted us to discuss doing the same for them. Likewise with our relationship at ABC-7 and various radio stations in the market.
We have essentially made our site's database and search engine a bargaining chip. For a newspaper, radio, or TV station to try to reinvent and maintain a search engine for their own web site would be folly at this point. What we have done is made it available for them to use in exchange for exposure. It's a preemptive strike that works, but it can only work if the database is in place.
The package has to be turnkeyor at least available in that form. The turnkey availability is valuable in that not all dealers have the right personnel or time to platoon someone from their staff to maintain an Internet web site. They want to be able to look at it as part of their marketing mix. They want it to be hassle free.
"Dealer associations understand what the dealer needs to sell cars," concluded Cizek. The association's understanding of this business allows for focus of the site and marketing of it. Seminars like the one we had can only help in giving dealers a stronger addition to their marketing mix."
Founded in 1904, the Chicago Automobile Trade Association is the nation's oldest and largest metropolitan dealer organization. If you have specific questions or require more information about this subject, please check the appropriate box on the reader response form on page 3.