TheMotorpages.com Sparks Interest in the Next Generation of Automotive Portal Technology
12 November 1999
TheMotorpages.com Sparks Interest in the Next Generation of Automotive Portal Technology
MINNEAPOLIS--Nov. 10, 1999--TheMotorpages.com, a subsidiary of Autoco.com (OTC BB: AOOO) today announced the overwhelming response to their new website and reported that new dealerships and advertisers are signing up daily. The new site located at www.themotorpages.com received over 277,762 hits during October for a total to date of over 950,000 hits since its launch late in September of 1999. The number of visitors continued to grow as rapidly as the total number of hits. TheMotorpages.com has also implemented aggressive and complementary public relations, marketing and advertising campaigns to support further expansion initiatives.The Motorpages provides a more robust alternative to traditional Internet car sites. The Motorpages is completely different than the other car sites that just provide car related information, and require consumers to disclose their personal information just to be contacted by a car salesperson. The Motorpages doesn't require the consumer to provide any personal information at any stage of the search unless they choose to voluntarily. If the customer chooses to use the "Car Find" section of The Motorpages they can instruct the site to locate a particular car that is generally not available and leave their return e-mail address. No intrusive questioning is required and the dealers are not required in any way to pay for the sales leads that the Motorpages provides. In other words, it provides a more hassle-free environment for the consumer to shop for cars and trucks online. If an automobile is found that the consumer wishes to pursue then a direct Internet contact is made with the dealer to facilitate the closing. This process is efficient for both the dealer and the consumer.
Dealers are using TheMotorpages.com to capitalize on the millions of consumers who now surf for vehicles and services online, however, dealership participation is not in the form of paying for potential sales leads, as offered by many of the well-known automotive websites. "As many dealers have discovered, more often than not these leads result in wasted resources spent on unqualified or unrealistic purchasers," said David Highmore, Vice-President, Sales and Marketing, TheMotorpages. "The Motorpages is not in the business of selling sales leads. Our goal is to establish relationships with the dealerships; offering dealer employees ongoing education on how to most effectively take advantage of the Internet as a sales tool."
For a flat fee of less than the price of a small ad in most Sunday newspapers, dealerships can post their entire inventory online, thus becoming part of The Motorpages online consumer search tool and unique virtual dealer-to-dealer network. Value-added services to the dealerships include a comprehensive training program for dealers, dealer-to-dealer networking, online inventory management and other Internet-related services.
"Dealer-to-dealer networking is invaluable to a dealership for two reasons," continued Highmore. "Firstly, dealerships can use The Motorpages exclusive dealer network to buy and sell from one another, similar to physically attending a car auction. Secondly, when a salesperson receives a specific request for a car that they don't have on site, they can quickly and easily find a participating dealership with the car they are seeking and purchase the car, thus increasing customer satisfaction and improving sales."
The Motorpages is currently up and running in the largest Canadian market, and plans to immediately expand to other major markets in Canada and the United States, beginning with Buffalo, Chicago, Cleveland and Detroit.
"The Motorpages is supplying dealerships with a user-friendly and cost-effective tool they can use to enhance their profits, sales, and improve internal efficiency," says Max Wandinger, president of TheMotorpages.com and the chairman of Autoco.com. "The success of this initiative is yet another example of Autoco.com's ability to tactically combine a bricks and mortar business with proven Internet initiatives. This calculated, stable and profit-oriented approach, combined with Autoco's extensive experience in the automotive sector, has proven to be a recipe for success."
The Motorpages estimates that it will reach a 12.5% market share among dealerships in the Greater Toronto Area within the next 12 months. This equates to a dealer membership of 500 dealers at an average subscription rate of $3600 per year. A similar market share in its planned expansion areas, Chicago, Cleveland, Detroit and Buffalo region, would increase the number of dealers to 5,625 representing significant revenues. In addition to the subscription revenues generated by The Motorpages, banner advertising revenues from the Toronto area alone are anticipated to grow to a $1.8 million level within the next 12 months.
"Our approach to e-business is more diversified and profit-oriented than that of many Internet-only businesses. Our revenue source is not just e-commerce and includes GTA and Royal Oak. We want to streamline and revolutionize the industries we work in, while intelligently combining the benefits of all of our industry experience with brick and mortar businesses and the Internet. One of the reasons The Motorpages has been so well received is that the GTA Auctions and Liquidations subsidiary has applied much of its extensive knowledge of the automotive industry to the site. Through GTA's years of conducting Ontario's largest public auto auctions, its key people have worked with thousands of dealerships. They not only know the day-to-day challenges dealerships face, but they have relationships with the key decision-makers," Wandinger says.
In addition to TheMotorpages, Autoco.com Inc. is currently the parent company of two other rapidly expanding companies: Royal Oak Technologies Inc., a leading-edge marketing and merchandising company, and GTA Auctions and Liquidations Inc., the largest public car auction in Ontario. Autoco.com, Inc. subsidiary companies provide distinct business operations, products and services contributing to an overall synergy of the organization.
Certain statements in this release are forward-looking. Although Autoco.com believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from its expectations. Autoco.com believes that its primary risk factors include, but are not limited to: the need for substantial financial requirements; the need to develop effective internal processes and systems; the ability to attract and retain high-quality employees; changes in the overall economy; changes in technology; the number and size of competitors in its markets; changes in the law and regulatory policy; and the mix of product and services offered in the company's target markets. Merger Communications (Merger) is a media relations firm employed by Autoco.com. Statements and opinions presented here represent the views of Autoco.com, not Merger, as the release is based on information provided by the Company. Merger and Autoco.com believe that all information in this release has been obtained from sources considered reliable, but cannot guarantee that the statements presented herein are accurate or complete. Merger's compensation for its media relations services consists of a fee and stock. Merger and its employees can have a position in the securities of the companies in which it distributes information for media use, and may be buying or selling securities in the course of its regular business.