00:24
Hey everybody, welcome back to another episode of The Daily Dealer Live.
00:29
I'm your host Sam Dark and thanks for choosing to be here on this Friday, March the 20th.
00:34
And what a sales environment we're in this March of 2026, week before last the FTC sent
00:40
warning letters to 97 dealer groups across the country over concerns that advertised
00:45
prices don't reflect what customers are actually paying.
00:49
And in so doing, that government agency sent a warning shot out to the entire industry.
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The agency laid out six specific practices that considers illegal things like advertising
00:59
prices that exclude mandatory fees.
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Fees like dock fees that have baited this past week in auto circles has been robust.
01:07
For example, in states where dock fees vary widely from $90 to hundreds of dollars.
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And there's some states where dock fee disclosures on state rules are supposedly prohibited
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So which supersedes federal rule, state rule, who's right, who's wrong?
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And then what about my zip code based OEM rebates?
01:30
There are many questions this week across the retail automotive landscape.
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NADA President Mike Stanton is meeting with the FTC next week representing dealer's interests.
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NADA is then doing a dealer webinar with a senior FTC attorney on Monday, April 6th to
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demystify a little bit of this Monday, April 6th, 1pm Eastern.
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Same time, we're live.
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So you'll have to do a split screen if you want to attend both.
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Go to NADA.org and scroll down the page for the webinar and to register.
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We're also inviting right here right now the Trump appointed FTC head Andrew Ferguson to
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join us on the show.
02:07
Come join DailyDeal Alive.
02:09
We'll give you our loyal listening audience updates on that and keep you current, of course,
02:13
on this entire topic as it continues to evolve.
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We have got a huge show today.
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Ryan Carlstead on taking service from a 10 grade to an 11.
02:24
Darren Spence on hidden money sitting inside your vendor contracts.
02:28
And Wes Lloyd joins the show on scaling service across seven rooftops.
02:32
Plus, we've got a super secret dealer guest on today sharing a perspective on a breaking news item.
02:40
So first, let's hit today's auto industry headlines.
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Up first this week, the Federal Reserve held its benchmark rate steady at 3.5% to 3.75%.
02:52
And for dealers, that means, as you know, the environment you've been navigating doesn't
02:56
get any time, it doesn't get easier anytime soon.
02:59
Financing costs stay elevated, affordability stays tight, and most buyers are affected
03:04
with this payment sensitive and lower credit customers who are already stretched.
03:08
Moody's analytics summed it up well.
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Dealers aren't leaning harder on incentives, rates of venture in longer terms just to keep
03:15
payments manageable, especially on new vehicles where prices are still historically high.
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Looking ahead, the Fed is projecting one cut in 26, possibly another in 27,
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but between the Iran conflict pushing oil prices up and inflation still running warm,
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even that timeline is not guaranteed.
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And as an aside, looking at the markets right now live,
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markets this afternoon seem to be suggesting a rate hike.
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The markets seem to be preparing for that.
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Next up today, Edmunds is out with another week of data showing EV consideration continuing
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to climb alongside gas prices.
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Electrified vehicles hit 23.8% of all vehicle research on their platform for the week of
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March 9th through the 15th.
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That's the highest weekly level of 2026 so far and up from 22.4% the week before.
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Most of that gain was driven by battery electric vehicles specifically,
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The caveat is still the same one we flagged last week.
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GMCFO said the automaker hasn't seen a major sales impact yet.
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An analyst generally say it takes four to six months of sustained high oil prices
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before buying behavior actually shifts.
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Sometimes true, but not always.
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Many of us remember back 08, how quickly that turned.
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In other words, dealers will probably see more cross shopping conversations on EVs
04:35
and hybrids in the near term, but not an increase in closed sales.
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Sticking with consumer behavior next up today, S&P Global is out with data showing industry
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brand loyalty fell to about 51% in 2025 while conquest volume rose for the fourth consecutive
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year and defections are approaching 4 million households.
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That means nearly half of all owners who came back to market last year switched brands.
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For dealers, that means more shoppers are open to being won over than at any point in recent memory.
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And that the stores most aligned on their targeting, trading strategy and outreach
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are best positioned to turn those defections into conquest wins.
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And last up today, breaking news from CDG.
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This just in this morning, Cox Automotive is ending its licensing agreements for
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Mannheim Market Report and Kelly Bluebook data within the VINQ platform this effective March 31st.
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That means native access to both indexes goes away inside the tool,
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though dealers can still reach them through the direct links.
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VINQ says they're replacing it with an AI-driven predictive market report
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launching April 1st focused on forward-looking wholesale projections rather than
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historical transaction data.
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And remember, right now we're streaming across all social media platforms.
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Push your comments in.
05:58
We'll bring your comments into today's show.
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And since this item is hot off the press, we wanted to bring on a dealer
06:03
to get their initial reaction to the news.
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So let's get into that right now.
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Let's turn to our first guest up today, Andy Wright, Managing Partner at VinArt dealerships.
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Andy, welcome back to the show.
06:16
Good to be with you.
06:17
It's good to have you here.
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You've been on the show previously.
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We appreciate you coming back to share with us this breaking news.
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So tell us, walk through us exactly what's changing for dealers April 1st.
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What does day-to-day look like now versus then?
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So basically what happened was Cox Automotive informed the guys over at VinQ
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that they're no longer going to be sharing information
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that is fully integrated into the VinQ platform from the Cox Automotive ecosystem.
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So it's confirmed that that includes Mannheim Market Report data.
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That includes Kelly Blue Book data.
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And supposedly, and I'm pretty sure that this is the case,
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it's going to include Auto Trader, VDP, and SRP data.
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So it's not that dealers won't have access to this information.
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They just won't have access to it natively speaking within the VinQ platform.
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And really the big story here is just the friction that that introduces, which is unfortunate.
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And I think it's emblematic of problems that have existed in retail automotive,
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at least in the 25 years that I've been doing this,
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whereby we have these large companies that control so much of the ecosystem.
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And they're able to make decisions like this today that negatively impact
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not only the dealer experience, but the customer experience.
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Because with the increased friction being introduced,
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it's just going to make the customer experience more challenging
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for those of us that are using VinQ.
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We'll get through it.
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But it's just unfortunate because there's really no plausible explanation,
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or I should say there's no express explanation for why.
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I think we could all speculate.
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But I guess that's for another time, maybe.
07:58
So to the point, so VinQ cox owns Viado, which is its competitive product.
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Is there precedent across other competitors to Viado,
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where cox doesn't allow MMR or KBB to flow into those tools via an integration?
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Or have they shut down all of those?
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Of the competitors that I'm aware of, yes,
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they have had those data sharing license agreements.
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Because again, it's my understanding that companies like VinQ or Accutrade
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or any of these other companies that are out there that do ingest this information
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from the cox ecosystem, that they're paying a licensing fee for it.
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And dealers are paying for this information.
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We all subscribe to Mannheim to gain access to market report data.
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We subscribe to Kelly Blue Book to have access to that data.
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And I want to be clear.
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We still do have access to it.
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But the bottom line here is that this move on the surface does not appear
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to be rooted or substantiated by any type of legal threat or by security threat
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or anything along those lines.
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It appears to be on the surface just a move to enhance cox automotive's
09:08
position with their Viado platform over VinQ.
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But again, that's speculation.
09:13
You'd have to ask the people at cox automotive why they're doing this.
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Hopefully they'll come out with an explanation.
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But on the surface, it just appears to be for reasons that are not good for dealers
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So that's unfortunate, especially given the fact that this information has already
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been in the platform.
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So why take it out now?
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And cox, we've not approached them to ask for their feedback on this yet.
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But has cox provided a response to why they're making this change?
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Or has VinQ signaled what triggered it?
09:47
Not necessarily, no.
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I can't say that they have.
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I haven't seen anything directly from cox.
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And there was a letter that was sent out by Danny Z and Chris over at VinQ to VinQ users.
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The letter was dated yesterday.
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It was I received it via email overnight.
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And yeah, it's just a really unfortunate situation.
10:06
And again, as someone that's been doing this 25 years and has battled the challenges posed
10:13
to technology and technology infrastructure that dealers like myself and others use to operate
10:19
our stores, it's just unfortunate whether it's third party companies that act as gatekeepers
10:26
to these manufacturer certified programs or situations like this where big conglomerates
10:32
like cox that control so much of the information that is important to retailers and is used by
10:40
retailers, decisions like this that get made are just unfortunate.
10:43
And frankly, I think they're unnecessary.
10:45
And until such time as they give us a realistic, understandable, substantive explanation,
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this is just this just smacks of the company that's concerned about competing effectively.
10:58
You know, it's interesting.
10:59
We had Brian Benstock on the show a couple of few months ago prior to NADA and he announced
11:03
and he showed everyone, our audience, a service drive tool.
11:09
And he basically took three companies, asked them to all come together, work together,
11:12
share data, share technology and techniques.
11:16
And actually, it was a big lift getting those three CEOs of companies to work together.
11:20
But what they created on the flip side of that was truly elite and it served Brian's customers
11:25
in a unique way. Is that the future of successful collaborations and automotive?
11:30
And is this, does this die eventually this?
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Because this is the argument in automotive today.
11:36
It's the argument over technology and data.
11:39
Who should have access to it?
11:40
And should there be a cost to it?
11:42
And will that data be allowed to flow into competing systems?
11:46
This does not, you know, at face value without, again, a response from Cox,
11:50
doesn't appear to be, it seems like it harms the customer experience, not helps it.
11:56
Yeah, absolutely. 100%.
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I mean, I think at the end of the day, companies like VinQ that are progressive,
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that are forward thinking, that are innovative, they're out there in the marketplace.
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They're trying to make the solutions that we use to service our customers, to run our stores,
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better, more efficient and more productive.
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And they have a demonstrated track record of doing that.
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That's why they have been so successful
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and added dealers at the level that they've been adding them lately,
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because they're checking all of those boxes.
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And then, you know, if we turn our sites towards this issue of data,
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and who owns it and who accesses it, you know, the funny thing about this case is,
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it's not like data was being accessed through subversion or through nefarious means.
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There were licensing agreements in place.
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There was money that was exchanging hands.
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The VinQ system was functioning properly and efficiently.
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And now this condition has been introduced,
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which is going to compromise that to a certain extent.
12:54
So it's unfortunate, but VinQ is prepared.
12:57
They've responded appropriately, as they always do with innovation,
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and that's encouraging.
13:03
But again, I think the real takeaway here is that this is just another example
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of an unfortunate situation that is emblematic of the challenges
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that we face in retail automotive as franchise dealers,
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where these companies either have too much control or there are gatekeepers,
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and there's constantly friction being introduced into the system
13:25
when we need to be working to take friction out of the system, Sam.
13:28
And I know we've talked about that previously, and I stand by that.
13:30
Yes. So you said this is a move by Cox.
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I'm reading into it.
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It's a competitive move to restrict VinQ and restrict their product.
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Is it possible it was a business decision?
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Is it possible it's related to data access or maybe some sort of an agreement?
13:47
I mean, we just don't know, I guess, at this point.
13:49
It's a little early, but VinQ is not signaling on their end.
13:52
What prompted this?
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Yeah, that's correct.
13:54
I mean, to be clear, I don't have any information one way or the other.
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All we're talking about here is peer speculation.
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So again, I think it would be prudent to invite the folks from Cox Automotive
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on the program and let them explain the decision, and let them explain why this
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was necessary and why this was ultimately good for competition and for the marketplace
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and for all the reasons that we would like to think and hope they make decisions like this.
14:17
But again, I'd have to defer to them.
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Everything else is peer speculation.
14:20
So, Andy, for that dealer who's with VinQ, who got this information,
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who decided, and actually, that'd be, I guess, the next question,
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not having easy access to MMR and Blue Book data information sitting or Kelly Blue Book
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sitting in the VinQ app, how much natively, how much extra time does it create?
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Like, what is the cost to the dealership to not have that accessible natively?
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And then for the dealer sitting on the fence, do you stick with VinQ or do you say, hey,
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having that ease of access is worth going back to Viato or a different platform that has access?
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How long does it take?
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And then how should I be thinking about that choice?
14:59
Yeah, I mean, from my perspective, I think that as a VinQ client, I look at it.
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I'm disappointed, obviously, but I'm also heartened by the way they've responded.
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They've responded again, like I said earlier, like they always do with the type of innovation
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and support that we've grown accustomed to as VinQ clients.
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And I think that if you're someone that's on the outside looking in, meaning you're not a VinQ
15:21
client, I think it might be reason to say, oh, my goodness, what are these guys doing
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that have cocks so sideways?
15:28
It must be something that's pretty special.
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If all these dealers are making the move, maybe it's something that I should be looking at.
15:35
And I think as the tool grows in prominence and grows in usage across the dealer network out
15:45
there in the United States, it's only going to help to fortify their position as a leader
15:53
I mean, that's choice.
15:55
That's what we want as retailers.
15:57
And I think we need to do everything we can to talk about that and encourage it.
16:00
So part of VinQ's response, I saw the letter that was forwarded,
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is saying that they're basically saying, hey, our technology is going to actually
16:07
beat Cox's technology as it relates to MMR and Kelly Bluebook.
16:11
VinQ's saying predictive data beats historical benchmarks like MMR.
16:16
Does the industry actually buy that yet or is there still heavy attachment to those old guides?
16:23
Well, I think it boils down to a case or a discussion about leading versus lagging indicators.
16:29
Sam, I mean, that's really what we're talking about here.
16:33
One can certainly draw any kind of inference they want out of looking at historical data,
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and the same goes for looking at forward-looking data points.
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So I think the most important thing is that dealers have all of the information at their
16:48
disposal to make informed decisions to run their businesses.
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And I think it's up to our solutions providers and the people that own the information that
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dealers, again, are paying for to be able to access that information via the mechanisms
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that they choose to access it.
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And in this case, for all of us, it was via VinQ,
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but Cox has decided to turn off that capability, which is unfortunate.
17:11
So VinQ's releasing their new tools free at no additional cost.
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What do you make of that?
17:18
Is that goodwill by VinQ or is that damage control?
17:20
Is they seek to stem an outflow of customers who no longer have easy access in the native app
17:26
to these data points?
17:28
No, actually, that's consistent with how they operate.
17:31
They're constantly improving their product, improving their platform,
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making enhancements available to their dealers.
17:40
I mean, Danny is a dealer.
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He understands what retailers go through every day and what we need to manage.
17:46
And the ecosystem that he's built is rapidly becoming industry leading.
17:51
And I think that's the other story here that needs to be taken away from this whole discussion,
17:56
the narrative around what is VinQ doing that would provoke this type of reaction from Cox, right?
18:04
What are they doing?
18:05
What do you think the answer is?
18:07
I think that they're a formidable competitor.
18:10
And I think that that's gotten the attention of companies like Cox
18:13
that have dominated the space, especially with products like Vioto.
18:16
So what would your message be to Cox as we wrap up today?
18:19
I do want to ask you a couple market questions.
18:21
But what would your message be to Cox about this action
18:24
and the future of the way they interact with other vendors?
18:29
If what you say is true and it's a competitive decision rather than a business decision.
18:35
I would say to them that for dealers like me who subscribe to multiple products
18:39
within their ecosystem, like Mannheim Market Report and Kelly Blue Book and Auto Trader,
18:44
that we deserve the right to access that information via the mechanisms and channels
18:51
and platforms that we have asked for and have historically done so.
18:57
Like I said, there's precedent here for what's gone on and absent a reasonable,
19:02
plausible explanation for why this decision was made.
19:06
They've made the wrong decision and my hope is that they would reverse course
19:11
and turn this spicket back on, if you will, Sam.
19:15
So this data can flow back into VINQ and we can use it to access it
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to make informed decisions about our business.
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But if we can't, we'll adapt.
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That's what we do as retailers.
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You know that, Sam.
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You've been doing this a long time too.
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And this situation will be no different.
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But I don't think in any way, shape, or form, it devalues the VINQ platform.
19:34
I think, again, it only helps to raise the stature of VINQ and what they're attempting to do
19:39
to assist the industry and to help grow the business of the dealers that subscribe to the platform.
19:45
Well, Yossi, our own CDG, Yossi comes into the comments as 100%
19:50
our editorial team is reaching out to Cox now.
19:52
So we'll have perspective on that very shortly.
19:57
Andy Wright, managing partner at Vinart dealerships.
19:59
We absolutely appreciate you coming on the show, sharing your perspectives on this breaking news.
20:05
So thank you for being with us today.
20:20
My technology went crazy.
20:21
So now I have to do a two-step verification to get back into my run of show here.
20:25
Hey, we are excited to bring you a great show today as part of the Cardiola Ship Guide's
20:32
Let's dive straight long into our first guest day, Ryan Carlstead, EVP,
20:37
Fixed Operations at Willis Automotive Group.
20:39
Thanks for being on and joining the show.
20:42
Thanks for having me, Sam.
20:44
Thanks for being here.
20:45
I've got to pivot just a little bit.
20:47
So hang on, just a sec.
20:48
I have to get, if you can believe this, in 2026,
20:51
I have to go through a two-step authorization here to get back into my spreadsheet.
20:57
I had a field service engineer in my office yesterday from Gerald Meyers,
21:01
and we were trying to log in.
21:03
We had an hour meeting scheduled,
21:04
and the first 15 minutes was just trying to get in the globe.
21:07
Yeah, isn't that crazy?
21:08
So technology, it's so interesting to Andy's point,
21:13
and we will get a Cox response on this breaking news from today.
21:18
Technologies are so dependent on each other.
21:22
So you see a gold standard tool like MMR, Kelly Blue Book,
21:26
and its ability to exist natively in even competitive tool sets
21:30
really sets the stage for success or not.
21:33
And it is an interesting thing.
21:35
Tools being able to limit each other's access,
21:39
it does create a little bit of a challenge, right?
21:42
Yeah, there's no doubt, yeah.
21:44
All right, give us, tell us a little bit about what you do in the world
21:48
for those in our audience that don't know you and aren't familiar with you.
21:53
Yeah, so from Des Moines, Iowa, Willis Automotive Group,
21:56
we've got nine different franchises that we service,
21:59
mostly luxury, but not all.
22:01
I'm the executive vice president of fixed operations,
22:04
so all the service parts, collision, detail,
22:07
our business development center,
22:09
all of those departments roll up to me.
22:11
We've got about 500 employees and probably a little over 300
22:14
of them are on the fixed off side.
22:17
How's business this month?
22:19
Oh, man, business this year.
22:21
This month, it's great.
22:22
We came out of the gates strong.
22:24
You know, in the Midwest, so much is reliant on weather.
22:28
And we've had two big snowstorms this year,
22:30
but they both hit on Friday nights.
22:33
So they really hurt us on the variable operations side,
22:37
but they help us out on the fixed operations side
22:39
to not miss any business days,
22:42
not miss any opportunity to sell those labor hours.
22:46
Our parts is trailing off just a little bit.
22:51
Everybody's doing really good here.
22:53
So you run five different brands.
22:55
You've got Infiniti, Lexus, Nissan, Cadillac, Chevy.
22:59
Most fixed ops leaders in your role.
23:05
Well, who did I miss?
23:06
Give me the ones I missed.
23:07
Lexus, Infiniti, Volvo, Land Rover, Jaguar, Mini,
23:12
So walk us through how you actually maintain consistency
23:15
across that lineup in your role.
23:18
Well, you know, most seven of our brands
23:20
are right here on the campus together.
23:22
So consistency is pretty easy.
23:24
Two of the stores are there within 10 or 15 minutes.
23:27
So, you know, we use the book traction EOS.
23:31
I know Bill Demery has been on your show
23:33
talking about that before we're three believers there.
23:37
Whether it's a weekly meeting with my team,
23:40
the fixed ops management team,
23:41
whether it's a weekly meeting with the executive team
23:44
on down, you know, our managers have weekly meetings
23:47
with their teams and, you know, communications,
23:50
number one, keeping everybody on the same page
23:53
And it's pretty easy to do when you've got
23:56
a great group of managers like minded, competitive.
24:01
You know, continue to drive forward.
24:05
So in 2025, you had the theme make work fun again.
24:11
M-W-F-A. And now in 26, your theme is our guest care goes to 11.
24:19
So what's that about?
24:22
And what does going from 10 to 11 actually look like
24:26
Well, I'll back it up to 2025.
24:29
So to make work fun again, you know,
24:30
it was just an effort to change our culture.
24:32
You know, fixed operations can be stressful at times.
24:35
And, you know, whether it's techs, advisors, managers,
24:39
And I said, you know, when I started the business 25 years ago,
24:42
we were out there having fun every day.
24:44
So let's just do that.
24:45
So yeah, it was our focus last year to just, you know,
24:49
make the shops fun, whether it's music or contest or whatever.
24:54
You know, let's just be pals and all the way around the dealership.
24:57
And we were successful.
24:59
And, you know, it turned into great CSI too,
25:02
because everybody was having a good time.
25:05
And 2025 was our best year ever across the board
25:08
for our CSI scores.
25:11
When I was thinking of what can we make our theme for 2026,
25:14
you know, I'm a little older.
25:16
And I think let's go spinal tap.
25:19
Let's turn it up to an 11.
25:20
And we got 10s last year.
25:24
Let's turn everything up to 11,
25:26
whether it's the fun that we're having in the shops,
25:28
on the drives with our guests.
25:30
And let's just turn that guest care number up
25:33
from a 10 to an 11.
25:35
Now, I had this great idea.
25:36
I was going to bring all of our advisors together
25:38
in this 6.30 a.m. meeting.
25:41
It's a regular training meeting we do,
25:43
but I'm going to launch this, turn it up to 11.
25:45
And I looked around my manager room,
25:48
and I saw there were guys in that room
25:51
that didn't even know what the heck I was talking about.
25:53
And I kind of said, wait, what?
25:56
You guys don't know spinal tap?
26:00
So I showed the clip to them
26:02
and everybody had a good time with it.
26:03
And I said, OK, well, we bring it out to the advisors.
26:05
They're even younger yet.
26:07
Let's make sure everybody understands.
26:09
So I kind of kicked that meeting off with some training stuff.
26:12
And then I said, OK, let's have some fun.
26:14
We're going to watch a video.
26:15
And they kind of rolled their eyes,
26:16
thinking it's going to be one of those videos.
26:20
And I hit that scene from Spinal Tap
26:22
where they're talking about the guitars and the amplifiers.
26:26
Brian, I'm going to get myself into trouble.
26:29
I have a really good cultural background.
26:32
Like, I don't know the scene.
26:34
I wish the producers could bring this up.
26:36
I've got to go pull it up.
26:37
Yeah, as soon as you come up with the show, Sam,
26:40
just go to YouTube and look for it.
26:42
You're going to be up at just that dry humor.
26:47
Amplifiers, they all go to a 10.
26:50
Well, Spinal Tap, the greatest rock and roll band of all time.
26:54
Amplifiers, they especially made to go to 11
26:56
because it's a little bit louder.
26:58
And so I showed that to our team, though.
27:00
And I said, that's what we're going to do for our guest care.
27:02
And we had, we turned it up to 10 last year.
27:04
We had great CSI scores.
27:06
But this year is about taking it that one step further.
27:09
You know, whether it's, you know, we dropped the ball.
27:11
Maybe we're sending flowers to their work.
27:14
You know, when they pick their car up,
27:16
maybe we can get them tickets to something, whatever it may be.
27:20
Just let's go to that next level of guest care.
27:23
So you gave two examples of what it means to turn it up
27:26
to 11's Spinal Tap style in 2026.
27:31
Are employees empowered to make those decisions?
27:34
Do they come back to you for approval on it?
27:36
How have you turned that into a system?
27:38
And by the way, Paul Salisman comes in and says,
27:41
it's a legendary film.
27:42
So obviously I need to go watch it.
27:44
I mean, I'm questioning your culture here.
27:47
That's right. I know.
27:49
I mean, we did a little contest to kick it off.
27:51
And I gave a little bit of a budget to every department.
27:53
And I said, look, as managers, you decide how you want to do it.
27:57
Whether you just say, look, when we hit this number, we're done.
27:59
Or if you have $500 and have five advisors and say,
28:02
it's a hundred bucks each, have fun with it.
28:05
And everybody can do it their own way.
28:07
So that way we're sure the advisors are bought in.
28:10
And, you know, some of them bought things.
28:13
Some went and just went to Starbucks and bought a bunch of Starbucks gift cards.
28:18
And when the guests came to pick up their car, everything went good.
28:21
They said, here you go.
28:23
You know, just a little something extra.
28:26
Stop on the way home.
28:26
Get yourself a warm cup of coffee.
28:29
Everybody just did a little bit different.
28:32
I mean, our Lexus service manager knows a guy and he prints wrapping paper.
28:37
And he had special Lexus wrapping paper made
28:40
and used some Lexus branded gifts and wrapped him up
28:44
and kind of gave gifts to people just like as if it were Christmas time.
28:48
So, you know, it's fun to see.
28:50
I said the only rule is you got to come back and tell the story to our group.
28:56
And, you know, we know that if we come back and tell the story,
29:00
you know, that guest on the other end of it,
29:02
they're at work with their coworkers and they're telling the story.
29:06
And, you know, part of our process here, we call it the proven process.
29:13
But step five in our proven process is to build customer advocates.
29:19
And, you know, darn well that if we screw up, people are at their job
29:23
and they're saying how bad of a job we did.
29:26
But what better than two days later we screwed up
29:29
and now all of a sudden they receive flowers at their job.
29:32
Everybody goes up and they say, where did the flowers come from?
29:36
And they have to say, oh, that Willis service team sent me flowers and,
29:41
you know, they made it right.
29:42
So just it's have fun, turn it up and let's make it a great year.
29:46
So you call your fixed management team currently your strongest ever.
29:52
Oh, yes, absolutely.
29:53
Give us in March of 2026 for everybody listening,
29:57
what's one thing that you've done to create this strongest than ever fixed management team?
30:01
What makes it the strongest ever today?
30:03
It's just having the right people in the right seats, having,
30:06
you know, the right people in that room.
30:09
I mean, we've upgraded a few, you know, addition by subtraction, if you will.
30:15
We do a really great job here of promoting from within.
30:19
We had a rock star advisor at our infinity store that, you know, he wanted more.
30:26
That job came open about a year and a half ago, maybe two years ago.
30:29
He wasn't quite ready.
30:31
And it came open again, but it was his time and it worked out well.
30:35
We promoted him into that role.
30:38
And gosh, that department just exploded.
30:41
Younger guy, when we have our fixed operations meetings every Thursday,
30:46
we've got a couple of managers that are former technicians.
30:49
We've got a couple of managers that are younger.
30:51
We've got female managers.
30:53
There's not anybody in that room that's not represented.
30:56
So when we bring our minds together on a Thursday just to bounce ideas off of each other,
31:02
I feel like we just do a great job of covering it from every single angle possible.
31:08
And when we leave that room, we leave with a lot of great ideas and put them into action.
31:13
And you talk about how currently, since you've got your strongest team,
31:16
now it's about fine tuning and it's about leaning in.
31:20
NADA data shows 6,000 open service-based nationwide with no text to fill them.
31:25
You're deep in skills, USA, and the DMACC pipeline.
31:30
So for a dealer who's watching right now wants to build a tech pipeline,
31:34
where would you start March, 2026 to build that and develop what you're creating?
31:39
I mean, yeah, you got to start in the high schools today.
31:43
And whether it's high schools or community colleges, you have to start them young.
31:47
You got to build your own technicians.
31:50
The ATEX, they're comfortable where they are.
31:52
They're not jumping ship.
31:53
If they are, they're probably just chasing the dollar,
31:55
which is that really a guy you want on your team anyway.
31:59
So get in close with those community colleges,
32:02
auto programs, get in close with the high schools with auto programs.
32:06
We've got our summer apprenticeship programs coming up.
32:09
We're taking applications for that now.
32:11
We bring in apprentices every summer for a 10-week program.
32:15
And on the paperwork that I made for that, call it the flyer,
32:21
whatever the marketing piece, at the bottom, I said,
32:24
if you graduate the 10 weeks and you meet our company core values,
32:27
I will guarantee you employment.
32:31
And it's been great.
32:32
I think this is how many,
32:33
how many of you brought on board to the organization?
32:36
How many of you hired this?
32:38
This will be our fifth year.
32:39
We've had four each year.
32:40
So just quick mass 16.
32:42
We've ran through the program and I'll bet eight are still with us.
32:46
And two are going to be there.
32:47
Just they still have school to finish.
32:49
One of them we had last year.
32:51
He was between his junior and senior year of high school.
32:56
And I mean, he has it.
32:57
He's a technician in his blood.
33:00
And to be that young, he's got such a bright future.
33:04
He's in a program called Avenue of Scholars.
33:07
They just rebranded a talent collective,
33:08
but it's a Des Moines public schools program for at-risk kids.
33:14
And they bring them up, they help them through school.
33:17
If they graduate the program,
33:19
they get their community college paid for.
33:22
This young man, he's a natural.
33:24
He did 10 weeks with us last summer.
33:26
We kept him on part-time because he could work part-time in high school.
33:30
So he works on our Lubrak on Saturdays.
33:33
He'll go to DMAC when he graduates.
33:35
He'll get an AAAS degree from DMAC.
33:37
He'll continue to work with us through that time.
33:39
And we can't wait to have him join our team full-time when he graduates.
33:43
And the leg up that he'll have on anybody else at that point, it's immeasurable.
33:49
And plus to your team, who strongest ever,
33:52
you're creating a great story and culture and meaning around
33:55
what it means to be part of that team working there and the reward, ultimately, the payout.
34:00
So before we wrap up, I just want to transition to two things.
34:03
One is the dealer financial statement.
34:05
I'm going to ask you to put your dealer hat on.
34:06
But before we do that, the service lane,
34:08
we talk a lot on the show, is increasingly the best place to source used inventory.
34:13
In fact, Cox Automotive data shows that the trade-in tipping point
34:17
is around $3,200 in repair costs.
34:20
How are you capitalizing on that opportunity in 2026
34:24
with sourcing used inventory in your fixed operations?
34:28
Yeah, we've got two outside employees that they use the equity mining tool to look at our appointments
34:35
and they reach out to those guests before they even come into our service department
34:38
just to kind of prime them to see if they'd want to get an appraisal when their vehicle's in the shop.
34:44
Our Nissan store, they actually put the salesperson out there that they don't use the outside to.
34:50
They have a salesperson that, you know, he was young and I don't know if I would say
34:55
it was performing great.
34:56
I'm not entirely sure.
34:58
You know, I like to focus on the fix, but he was the right guy to put back there.
35:02
And they change his title round, changes job duties around.
35:05
And he greets people on our service drive at the Nissan store now.
35:09
He helps them get a drink.
35:10
But then he also gets them an appraisal of their vehicle when it's there.
35:15
And gosh, I think they started it in December.
35:18
And they reported back at the end of December on how well it was working.
35:22
And this kid's sales are through the roof and he's spending half the time, you know,
35:26
where all other salespeople are probably just working the phones.
35:29
He's working the drive and he's coming up that leaderboard fast.
35:33
So you said he was the right person from your perspective in fixed ops for those in variable
35:39
listening. What are the characteristics of the right person that has made him successful
35:44
Because that is a tough, like you do have to find the right person committed to that
35:49
role to make it successful.
35:50
Honestly, I'd say really new to the business because I feel like we've tried it and failed
35:54
so many times that he got these people that have been in the business for so long and
35:59
they've seen it where this is your hour.
36:01
You got to go be out there and they just roll their eyes and hate it.
36:04
They come in with the wrong attitude.
36:07
He was kind of too young to know any better.
36:10
And he went in just with the super positive attitude and made it work because he didn't
36:16
have the bad habits.
36:17
He didn't have the negative connotation.
36:19
He went in there and said, this is going to be something to help me become successful.
36:24
And it's that attitude.
36:25
So, you know, the people who've been selling cars for 20 years, you probably can't
36:30
coach their attitude or change their attitudes.
36:33
So he had the right attitude.
36:35
I think that's probably the number one thing.
36:38
You've been focused on this 11 experience.
36:41
You've got a great culture.
36:42
You've got a strong leadership team for a dealer who's watching today who says,
36:46
hey, I'm going to go walk back through service department.
36:48
This is an assignment for everybody.
36:49
My fixed ops department in the next half hour.
36:52
What's the single most important thing they should look at right now to know
36:57
if they've got a well run successful service department or what's one thing they could look
37:01
for and say, hey, this needs to change if you walked back.
37:03
I'd say you can see processes.
37:07
You know, processes are on paper.
37:08
But if you're walking through the department, you can see processes in action,
37:11
whether it's the service advisors greeting the guest at their car and whether it's the technician
37:17
doing the video multipoint, the parts department delivering the parts out.
37:22
You can walk back and recognize a well-oiled machine.
37:26
And yeah, there might be some dirt on the floor.
37:28
We fixed cars back there, but you can visually see the process.
37:34
And I think as a dealer walking through, just observe people's movements.
37:39
Because as I said before, we sell labor hours.
37:42
So to minimize the movements and maximize our efficiency, that's the most important thing.
37:47
And if you just stand up, whether it's a tower or a dispatcher desk or wherever,
37:52
you can see those movements and you can see the efficiency visually rather than a paper process.
37:58
All right, I got another question for you.
38:00
Low's customer pay.
38:02
You walk into a dealership, low customer pay.
38:05
What's the antidote for low customer pay relative to NADA numbers in March, 2026?
38:11
How quality of inspections, video multipoint inspections, working with advisors to overcome
38:18
Video MPI do you use?
38:25
Yeah, well, Solaris, we auto points the route sheet.
38:28
It's what we send it out through.
38:29
We use NUMA, we send them out through text, but we shoot them through auto point,
38:33
which is a Solaris company.
38:35
I couldn't agree with you more.
38:36
It's about the experience and what training system do you use for your advisors'
38:40
technicians on delivering that experience?
38:44
I mean, we do some 6.30 AM monthly training sessions.
38:48
We work with the management staff.
38:52
We've sent some to some NCM training.
38:54
Most all my managers have been to NCM training.
38:56
I've been there, but we teach culture more than anything.
39:00
We teach hospitality.
39:01
We're a Lexus dealer, so we steal a lot of their stuff.
39:04
I mean, Lexus, when it comes to hospitality, is number one.
39:07
So we cascade that Lexus message and make it a Willis message.
39:13
All right, Ryan Carlstead, EVP Fixed Operations Willis Automotive Group.
39:16
We're going to have you back as part of our traditional roundtable.
39:18
Appreciate you being on the show, sharing your perspectives, and we'll have you back
39:22
Thanks for joining us.
39:25
All right, let's talk Stream Companies.
39:28
Today's episode is brought to you by Stream Companies.
39:30
How much revenue is slipping through the cracks at your dealership?
39:32
Stream Companies' missed opportunities report analyzes your strategy and highlights
39:36
where you can drive more sales faster.
39:39
Request your free report today at streamcompanies.com slash D-D-M-O-R.
39:45
Again, request that report today at streamcompanies.com slash D-D-M-O-R.
39:50
And props to Stream for supporting the content we've had today, including Ryan's
39:54
take on how to turn it up to an 11.
39:56
It's a spinal tap inference.
39:58
I'm going to go watch that after, as well as Andy Wright's perspectives on technology
40:04
sharing in 2026 in this automotive space.
40:07
And turning to the chat before we go to our next guest, I love it.
40:10
Everybody is in there.
40:12
John Roper, turn this thing up to 11.
40:14
I can't wait to see a SWAT team, but this one goes to 11.
40:18
Michelle, why don't you just make 10 louder and make 10 be the top number and make that
40:23
And then Dan C. Pipes in Kula Lake is awesome.
40:26
I hope I pronounced that correctly.
40:28
Diving into our next guest, Darren Spenst, founder and CEO of The Laundry Guy.
40:34
Darren, welcome to the show.
40:36
It's great to be on the show.
40:39
Hey, for our audience that doesn't know yet, who are you and what do you do out there?
40:43
Yes, I'm one of those laundry guys.
40:45
So I started with Sintos many years ago.
40:50
So I've been in the industry almost 30 years and we started this company in 2004 and really
40:57
just came out of a need where as a sales guy at Sintos, I would sell something and all of a sudden
41:03
it would be double a couple of years later.
41:05
I'm like, what the heck is going on here?
41:06
And so what we do now is we're the number one cost reduction company in uniform and linen.
41:12
We kind of pioneered it.
41:13
There's a few people out there doing it, but we've solely just stayed in our lane and specialized
41:17
it instead of saying, hey, we do 20 categories.
41:21
We really have spent our time and our dollars developing software, helping clients.
41:26
In fact, Ryan from Willis Auto is one of our clients for many, many, many years.
41:30
And so we're privileged to be a part of this group.
41:34
We have a lot of different categories that we do business with.
41:37
But I will tell you that I'm partial to the auto dealers.
41:40
They're fantastic people and we've had great success.
41:43
We've had hundreds of dealerships that we've done in the past,
41:46
and we hope to do a lot more moving forward.
41:49
And in fact, as we go on today, you've got a word to say about dealers during COVID.
41:54
But before we go to that, you've audited over 2,000 locations.
41:57
You say over 80% of businesses, dealers you audit, have some sort of billing drift.
42:02
For a dealer who's never heard that term, walk me through what billing drift actually looks
42:06
like on a monthly invoice.
42:08
Sure. We kind of call it invoice creep, right?
42:11
So dealers and COs like yourself fix obstacles.
42:15
You guys are really good at negotiating.
42:18
But I'm going to tell you something today.
42:20
So here's the deal.
42:22
You sign an agreement.
42:23
I want you to remember this phrase here.
42:25
Invoices change, contracts don't.
42:29
So at the end of the day, what ends up happening and what's written into these agreements
42:33
is that these suppliers can change the price on your invoice,
42:37
and you have to notify them.
42:39
It could be within 10 days or just a price increase.
42:42
So what ends up happening is ticky tack things start to add on.
42:47
And so I can be more specific on exactly what type of things.
42:50
But what ends up happening is over time, they start increasing things.
42:54
It can be inventory.
42:56
You know, the shop towels were 20 a guy.
42:58
Now they're 25 a guy.
42:59
There's five ways that they charge for a shop towel.
43:03
So if you don't negotiate all five ways of how are they going to charge you
43:07
for that shop towel, they have the advantage.
43:12
So as you see that invoice creep, and I've seen it,
43:15
how should a dealer respond March 2026 to prevent invoice creep in the uniform business?
43:22
Yeah, outside of calling us.
43:23
This is what I would do.
43:24
Okay, right today is grab your contract, look at your invoice.
43:29
What did I agree to?
43:30
You know, Sam, we have hundreds and hundreds of clients that we deal with every single month.
43:35
We negotiate the deals on behalf of dealers or companies out there.
43:41
Inevitably, when we install that new pricing, it is never contract compliant.
43:46
Meaning there's a lot of details.
43:48
There's human behavior.
43:49
There's all this kind of stuff.
43:50
But think about this.
43:52
We've been doing this since 2004.
43:55
Now today, 2026, the accounts are bigger.
43:59
They're more complicated.
44:01
And so what you have to do at the end of the day is ensure for contract compliance.
44:06
And we have to check at 50% of the clients that we audit every single month
44:10
after we've negotiated on behalf of the clients is not contract compliant.
44:14
It can be a little thing here.
44:15
It can be a little thing here.
44:17
Some of the tricks are on your agreement.
44:19
You've got a 3x10 mat that's on the agreement.
44:22
But they switched it out with one of these Zippity-Doo mats that are way cooler and way better.
44:28
Well, that's not on the contract.
44:30
So that 3x10 mat now is an Onyx mat.
44:33
So it is not negotiated.
44:34
So something that the dealers can do right away is just say, what does my contract say?
44:38
What are my invoices say?
44:40
What are the items that are not on there that I need to negotiate at the end of the day?
44:44
And honestly, that's be fair.
44:46
You dealers are busy.
44:48
This is not number one cost or third or fifth.
44:52
And you guys look at it every three years or so and you negotiate.
44:55
You do a great job.
44:56
But I'm telling you, as soon as that contract is done, it's about the invoices.
45:01
And we've developed software to ensure that on a monthly basis,
45:04
every single line item is checked for contract compliance.
45:08
And it has to be a net savings at the end of the day.
45:10
The only way we can help clients is we actually save them money.
45:13
So it's interesting.
45:14
I think there's two types of creep in your business.
45:17
The area that you're in in that fixed ops department uniforms and supplies and all that.
45:22
So you get the price creep over time and you're right.
45:25
Like I see that and you've got to push back on that.
45:28
The other side you see is quality decrease or quality decline over time.
45:33
There's something about, as you partner with somebody over time longer,
45:37
you become comfortable with each other.
45:39
You kind of become a little lackadaisical and whatnot.
45:41
And the quality can go down, whether the timing delivery, the quality,
45:45
the uniforms that are delivered.
45:46
Why does the quality decline over time in your experience?
45:51
And how should a dealer think about maintaining both those lines?
45:56
Avoid the invoice creep, but then also avoid the quality decline on the flip side.
46:02
Well, I can tell you something tactical that we've done with clients that have that is,
46:07
you have a quarterly meeting.
46:09
You write it into the contract, so that you have on a quarterly basis,
46:13
you're meeting with the service manager, being with whoever it is.
46:15
But you and I know, Sam, it starts with leadership.
46:18
It starts right in the top.
46:20
And so if you have people, process, product, at the end of the day,
46:24
you have systems and trust me, these companies have tons.
46:28
But this is an interesting fact that happens is that they're always managing X states.
46:35
Well, I have a good relationship with this person or do I not?
46:38
And I can tell you, when it's not a good relationship, they kind of stay back, stay back.
46:42
And then they're like, okay, we'd like to renew this, but they'll actually let it go past Sam.
46:49
Because a lot of clients don't know that, hey, this thing ought to renew.
46:53
Like this ought to renew.
46:55
And I know state by state, it can be a little bit different.
46:57
But, you know, putting it into the agreement and then making sure your staff and your service
47:02
manager, because the big boys negotiate it.
47:05
And then the other people have to run the program on a day to day.
47:09
And with all the details, it gets difficult.
47:10
So you shared with us, there's a common contract clause.
47:13
A dealer has no ideas in the agreement.
47:15
Is it that auto renew feature?
47:18
No, that's just one of them.
47:19
So we talked about creeps.
47:20
Maybe there's other creeps that are around here.
47:23
So we've got things in the agreement that say they can raise prices at any time that they want.
47:30
Well, wouldn't that be nice for you guys to do that?
47:34
That should be redlined in every contract, I think.
47:37
A lot of times, people do write it out.
47:39
But the other one is it's the invoice.
47:41
So they'll put on the invoice that if you do not see it within 10 days, you've agreed to it.
47:47
Sam, what industry can you get away with that?
47:50
So why has that become acceptable in uniforms?
47:53
Why is that acceptable?
47:56
Why has that become acceptable in the uniform service market?
48:01
I think it's a great question.
48:04
You'd have to ask these big boys.
48:05
But at the end of the day, these are Fortune 500 companies.
48:09
They have to get a return.
48:11
And they're incentivized to do that.
48:14
So I have three brothers, Darryl, Dave, Darren, Dan, four boys.
48:18
And they would be incentivized.
48:19
OK, you're going to take these five minutes out today,
48:21
and you're going to get them down as free trials,
48:23
and they end up staying on the floor forever.
48:25
So they're incentivized to grow.
48:27
That's part of the business.
48:28
And at the end of the day, this just becomes wallpaper on the wall for your folks.
48:32
It's like, OK, the guy comes in, he comes out.
48:35
I've got a shortage.
48:36
Is Bob still on the invoice?
48:37
Is he not on the invoice?
48:39
So these programs live and breathe, and I will tell you,
48:43
if they're not being checked every single month for contract compliance,
48:46
when do dealers have time to do that?
48:52
So one news item, and then we'll go to your COVID stories as we wrap up.
48:56
So with Sintas acquiring Uniforced and the uniform service market consolidating,
49:02
I think dealers be curious.
49:02
What does that mean for a dealer who's already mid-contract?
49:06
Are they more exposed, or is there a window to renegotiate that?
49:11
Quality of uniform?
49:13
Sorry, I'm having a little bit of audio here.
49:16
Sintas, with Sintas acquiring Uniforced.
49:21
So the acquisition of Sintas in Uniforced is an absolutely huge thing.
49:26
In the 29 years that I've been in this business,
49:30
this is the biggest thing that's happened.
49:31
And invest this as well, which is, Sintas is acquiring Uniforced for about $5.5 billion.
49:39
So Sintas is going to go from about a million customers to a million and a half.
49:43
So if you are someone who is actually utilizing the Uniforced,
49:48
and you moved away from Sintas, I guess who's coming back.
49:52
And let's go to our next guest, West Lloyd, Service Director at Stuckey Auto.
49:56
West, welcome to the show.
49:57
Hey, for the world, tell us who you are, what you do, and how's Biz in your store, West?
50:03
So I'm a Service Director at Stuckey Auto, but I oversee eight different repair centers,
50:09
cover three different counties.
50:12
I've been in the business for about 20 years, sort of turning
50:15
wrenches whenever I first got into it.
50:17
And then just kind of progressively made my way from there to the service desk.
50:21
And yeah, now I'm near the top of where I could be and just thrilled to be there, too.
50:27
Great company and very proud of what we do here, so.
50:31
So in your fixed ops world, you've got a lot of different brands.
50:33
You've got Ford, Subaru, you've got GMC, Chrysler, you've got Nissan,
50:39
you've got Mitsubishi, Ford and whatnot else.
50:42
You have a big job spread out among multiple stores.
50:47
Before we get into strategy, talk to us.
50:49
What does your week actually look like day to day?
50:51
How do you manage all that?
50:54
I mean, I think that's probably the best way to summarize it.
51:00
Funny as you were kind of talking about it, the first part of the show,
51:03
the two-step verification, right?
51:05
Even to get into GM's platform, Ford's platform, Subaru's platform, Mitsubishi's.
51:10
Every one of them have a two-step.
51:12
And if you have them in the same browser, they're contradicting one another.
51:17
So it's interesting.
51:18
And that's a good explanation of basically how all of it works, right?
51:23
Constant things you're trying to keep up with.
51:27
And yeah, I lost access to my spreadsheet here.
51:29
And I got kicked out of the worst possible time.
51:31
And then I had to go through a two-step authentication in the pivot.
51:34
So it was all sorts of fun.
51:35
So with all those brands, which brand is winning in March,
51:40
2026 in the fixed operations department?
51:42
Who is helping you the most?
51:44
I'll be honest to tell you that I spend the majority of my time here with Subaru.
51:48
And so it's always got a little piece of my heart that it's a wonderful functioning brand.
51:58
If we always joke about that, if we could have multiple Subaru stores,
52:01
we would because once you get the clientele running and everything,
52:05
the cars sell themselves, the customers sell their own service work, it just rolls along.
52:12
What is Subaru doing right this year that other manufacturers or OEMs could learn from?
52:19
I mean, I think it's just something about how their mentality is,
52:23
is taking care of the customer first.
52:24
You know, they definitely have that mentality.
52:27
And honestly, it aligns perfectly with our values at Stuckeys too,
52:32
is taking care of the customer.
52:34
And when you take care of the customer, it builds the business in return.
52:37
It just keeps coming back to you.
52:40
You've built a technician recruiting pipeline as well, similar to Ryan.
52:45
Talk to us about what you've built and where you're going with that.
52:51
So yeah, across at least the two of our main counties,
52:54
we work with the local career technology centers.
52:58
We have co-op students in basically every one of the stores.
53:01
Some of them have two.
53:03
Our body shop, I think it even has more than that.
53:05
We work with these kids basically in their senior year,
53:09
work to develop them from the beginning of the year of just they kind of watch.
53:14
And sort of maybe help a little bit.
53:17
And then by the end of the year, we're looking to gauge what their progress has been
53:22
and help them develop to like by the end of the school year,
53:27
someone who's ready to be hired and someone who can start and kind of have
53:31
a good functionality day one, right?
53:35
So we talked with Ryan the importance of video MPI and pictures and whatnot
53:41
to create that great customer experience.
53:44
And I do think there's a connection to customer pay.
53:47
There's a connection to CSI, everything else.
53:48
You recently deployed that across the group.
53:52
What has it done for your approval rates for the bottom line?
53:56
What numbers do you have for us?
53:57
As far as numbers, I mean, without spending all the time,
54:00
I couldn't give you anything specific.
54:02
But like to tell you, I mean, it's an honest, very,
54:04
very easy thing to see the difference in what someone's willing to spend
54:09
when you're very just transparent with them by showing them their car.
54:12
You know, you're starting at the back of the car,
54:14
showing their license plate so that's very clear to them that,
54:17
you know, that we are on their car, right?
54:19
And then working your way around to show them what their tires look like,
54:21
what their brakes look like, what their filters look like.
54:25
You know, it's been an objection we've probably,
54:27
you know, we've heard for years, right?
54:28
Well, that's not the filter on my car.
54:30
You're showing me somebody else's brake pads.
54:33
You're taking that out of the equation when you're shooting your video
54:36
and sending it to the customer, right?
54:39
What was the hardest?
54:41
How long, how long ago did you implement video in your world?
54:43
I would say it's been somewhere right around probably like five years.
54:47
So it's been a long time.
54:51
You know, there are shops that are slower to implement that.
54:54
What's your take on that?
54:56
Why is it hard for some stores, some shops,
54:59
some organizations to make that part of their culture
55:01
when you've been doing it for five years,
55:03
presumably back to on a time when, you know, people looked at video
55:06
and it was very difficult to actually generate and send.
55:09
It's changed, right?
55:10
Makes everybody uncomfortable, right?
55:12
We're changing something that's a part of our daily process.
55:15
But, you know, when we jumped on board with it,
55:18
our goal was always to be the best with it, right?
55:21
So how can we develop this?
55:23
How can we make it play to our advantage?
55:26
How can we be ahead of the curve, right?
55:28
You know, we're dynamic in what we do at Stuckeys.
55:31
So we're looking at how we can be the best
55:33
with the process right out of the gate.
55:35
And, you know, now, you know,
55:38
you see it in a lot of the manufacturer surveys, right?
55:40
Where you often have video MPIs wearing your service there.
55:44
If you've already eliminated that,
55:45
you've already made up your mind
55:46
that you're going to be fully committed
55:47
to making that change and adapting to it,
55:50
we're ahead of the curve whenever everybody else is going,
55:52
oh, hey, this is something we're going to do.
55:55
Yeah, we're already there.
55:56
The process is developed.
55:59
So one other area I wanted to hit on,
56:01
multi-brand warranty management is tough, right?
56:04
It's an underappreciated P&L lever in fixed ops.
56:06
Between Ford, Stilanus, Nissan, Subaru and GM,
56:09
you've got five different warranty cultures
56:11
and as many different reimbursement processes.
56:16
Where do you win in that?
56:19
What's the biggest challenge most dealers face
56:21
in warranty reimbursement?
56:22
Because that's a huge gap for people
56:24
that haven't fully solved for it.
56:26
And with multiple OEMs, it's a challenge.
56:28
It's honestly, it's, you know,
56:30
when we have our warranty administrators,
56:32
they figure out the finite details
56:34
of some of that stuff, right?
56:36
You know, trying to wrap my head
56:38
around all the different OEMs
56:40
and the different things you can do,
56:42
honestly, in the middle of a warranty rate analysis
56:45
for our Subaru store right now.
56:46
And it's the little tweaks and twists
56:48
and things that you can do.
56:50
And, you know, you learn that
56:52
as you've done it a couple of times,
56:53
but getting to understand the different processes
56:57
that each one of them follow when it comes to,
56:59
I mean, they're all the same when it comes to,
57:01
obviously, they all have cost correction
57:04
complete cost correction, right?
57:06
But how you can build the time
57:09
and make sure that you're, you know,
57:10
that you're maximizing what you're getting from them
57:12
is really where you start to have to think
57:15
outside of the box and develop those things, right?
57:19
So you said in your intake form,
57:20
you talked about how you changed your mind
57:22
about something important
57:23
and how you run fixed operations.
57:24
What was it and what made you change it?
57:27
Um, and I'm trying to think of honestly
57:30
what that was, pro, to be perfectly honest with you.
57:35
Or just give us, is there anything, you know,
57:38
you run a lot of stores?
57:41
Has, have you had a mindset shift
57:43
over the past few years
57:43
about any part of the operation,
57:45
about any process where you're like,
57:46
hey, you know what, that used to be true,
57:48
but it's not true in 2026.
57:49
And as a result of changing,
57:51
you're winning more in that world.
57:53
I mean, honestly, our entire process,
57:56
when it comes to from the check-in process
57:58
to the re-delivery process,
58:00
you know, just there,
58:03
there really doesn't need to be anything
58:05
that's different from brand to brand
58:06
when it comes to that, right?
58:07
You do your proper walk around,
58:08
turning the wheel, checking the car in.
58:10
Again, this is no different than your video MPI.
58:13
You're being transparent with the customer
58:14
because you're showing them, you know,
58:16
their inspection, obviously in PA.
58:19
So you're, hey, your state inspections do.
58:21
How about we do that?
58:22
Very simply showing them things
58:24
and recommending them and letting them
58:27
add them onto their service, right?
58:29
You're turning the wheel, you're showing them
58:30
what their tires look like
58:31
before that even gets in the shop.
58:32
And then your technician follows through
58:34
with proper video, proper
58:36
tried-depth inspection of it.
58:38
And all that's doing is just reinforcing
58:40
what you've already shown them, right?
58:43
So that's been, I think,
58:45
our biggest game changer is just dialing
58:47
in a specific process and making sure we stick with it.
58:51
So you heard Darren,
58:52
and we're going to bring Darren back here
58:53
in just a moment, laundry guy.
58:56
We had just a little bit of tech issues.
58:58
What's your take on invoice creep
59:00
as it relates to some of those items?
59:02
I see it in the COO role.
59:04
It drives you insane, drives you crazy.
59:07
And like I said, it's two levers.
59:09
It's invoice creep,
59:09
but then it's also quality decline over time.
59:12
And at Ziggler, we've been fortunate to have great partners.
59:15
So I don't think we've been hurt as much by that as others.
59:18
But what's your take on that?
59:19
It's funny, obviously, he mentions that.
59:22
It's like, we've all seen it, right?
59:24
Yeah, you're looking at an invoice for your uniforms
59:26
or for your oil disposal or for whatever.
59:28
And it's like, man, I feel like the last time I looked at this,
59:30
this was $50 less or whatever.
59:35
What we try to make sure that we have done to counteract
59:37
that is creating purchase orders for every single item
59:40
and the manager touches them, the manager's siding them.
59:43
So you know right away when you're doing your uniforms, right?
59:46
Hey, this doesn't seem right.
59:47
It was $100 last week.
59:49
I'm making a PO for $150 this week.
59:52
Yeah, I mean, it's no news secret to us.
59:54
It's just trying to be ahead of, I guess,
59:56
watching out for it consistently, right?
59:59
All right, before we go back to Darren,
00:01
and we'll put you backstage here for just a minute,
00:03
what's one process that you just live and die by in the Auto Group 2025
00:10
that's helped you achieve greater profitability,
00:13
greater customer retention, greater CSI in the service department
00:16
that others might learn from?
00:18
I mean, and we already touched on it,
00:20
and I hate to kick back to that,
00:21
but honestly, it's the only guy without a doubt.
00:23
Yeah, five years in a row.
00:27
That builds your service and it reinforces everything
00:30
and builds trust, and that's just,
00:32
you know, again, I hate to reinforce it again,
00:34
but it's the honest truth.
00:36
So you're so big on culture, both, you know,
00:38
both you and Ryan are huge on culture.
00:41
And I asked, I guess, this last episode,
00:44
what's more important, Billy,
00:45
what's more important in successful, profitable,
00:48
dealer operations in 2026?
00:50
Is it culture or is it process?
00:54
I mean, honestly, I think if you have the right culture,
00:56
you can teach the process, right?
00:58
That's the mentality when we're interviewing,
01:01
we're looking to hire.
01:02
I'm looking for someone with the right culture,
01:04
because the right culture is something that,
01:06
I don't know that you can change in someone.
01:07
The process is something that you just got to develop.
01:11
Well, West Lloyd Service Director at Stuckey Auto,
01:13
hang backstage with us for just a minute.
01:15
I think if we have time, we're going to bring you both,
01:17
both you and Ryan back on,
01:19
but we want to bring Darren in.
01:21
So thanks for being on the show today.
01:23
Thanks for sharing your perspectives.
01:24
All right, we'll have you back in a moment.
01:26
So we're going to go to our closing out round table,
01:29
Ryan Carlstadt and West Lloyd.
01:31
Let's see if we can get both those guys back up.
01:33
And then we'll wrap out today's show.
01:35
We talked a lot about technician recruitment.
01:38
We talked a lot about training and development.
01:41
What do you think is the most misunderstood component
01:45
of technician and service advisor recruitment
01:49
in March, 2026 in automotive?
01:51
What's the most underappreciated,
01:53
under-realized component of that?
02:01
I think advisors, the most kind of overlooked is,
02:05
I think everybody wants a turnkey advisor,
02:07
somebody that's going to come in and already know everything.
02:11
And I don't think that's necessary.
02:14
I think the main thing, we keep talking about culture.
02:18
Can this person fit our culture?
02:20
Are they going to take care of our customers?
02:23
And can I teach them how to sell?
02:26
Can I teach them about,
02:27
I don't care if an advisor knows everything about a car.
02:34
It's just that positive attitude come in,
02:37
willingness to learn.
02:39
I think that's the biggest thing for advisors.
02:41
Our employee of the year last year,
02:43
the last two years has been a service advisor.
02:46
And our employee of the year last year,
02:49
2025 employee of the year,
02:51
Marion from our Land Rover store.
02:54
She's, when I talk about the culture at that store,
02:57
she's one of the drivers of it.
02:58
She's always happy, just super happy to be at work,
03:02
super happy, friendly to every single person
03:04
that comes in that door.
03:06
I've never seen anything like it before.
03:08
And now I see it all over the place,
03:10
because it's infectious.
03:12
And I think we just,
03:15
think we need to find these turnkey,
03:17
15 years service advisors.
03:19
And honestly, I don't know what I want that.
03:23
Wes, what do you think's the most misunderstood
03:26
about recruitment in technician and advisor?
03:29
And I think you are right.
03:30
They're not the same role, but what would you,
03:33
how would you answer that?
03:34
You're opening the door for somebody.
03:36
If you're a customer, honestly, anybody walking there,
03:38
you're just looking for that common value
03:40
of like someone who has a general care
03:43
for other human beings.
03:44
Because if they do,
03:46
they're fixing cars for the right reasons.
03:49
They're doing things for the right reasons.
03:51
But I am going to say, I'm going to advocate
03:54
if we grow them both, advisors and technicians.
03:57
Technicians are, the years of recruiting them
04:00
from other dealers and things, they're just gone.
04:03
They're not looking around like they used to be.
04:06
Like Brian said, if they are,
04:07
all they're doing is chasing dollars.
04:09
They're probably not the right person
04:10
that you want there anyways.
04:11
I want to grow them because honestly,
04:13
if they come up through the ranks with you,
04:15
they're more loyal to you.
04:17
They're more likely to stay.
04:18
All right, we're going to go quick rapid fire.
04:22
What's the single most utilized,
04:24
underutilized profit opportunity in dealerships
04:28
Let's start with you, Wes.
04:30
Biggest, most underutilized profit opportunity.
04:33
Honestly, I think it's not checking
04:35
and utilizing alike alignments and stuff.
04:38
It's something we put a big focus on recently.
04:41
It saves the customer a lot of money
04:42
if they're not eating up tires.
04:45
Yeah, I'll echo that.
04:47
I'd rotate and balance to that list.
04:49
I think rotation and balance back
04:52
when I was an advisor, where you do a rotation
04:56
every 7,500 miles and a balance every 15,000 miles.
05:00
And now with extended oil change,
05:02
it's like we've just forgotten
05:03
that we ever need to balance the wheels on the tires.
05:06
And I think put that balance,
05:09
put it in with the alignment,
05:10
and just make it an annual thing.
05:13
You got to master that.
05:16
The OEM or the card dealer,
05:17
extended oil change or on our interval
05:21
to bring them back in for more frequent tire rotations.
05:26
You know, honestly, we try to adapt to balance
05:29
because we're in that mixed climate where we're not
05:32
spirited, but we're not regular maintenance either.
05:35
We're not driving on the flat plains of Kansas,
05:37
but we're not driving in the Rockies.
05:39
So we try to adapt a little bit in between
05:41
and kind of, you don't have to take an official stance there,
05:47
You've got to bipartisan, if you will.
05:49
Yeah, you've got to go a little political there.
05:52
I think there's a meet in the middle.
05:54
There are days of 3,000 miles on an oil change.
05:57
I think that's too soon.
06:00
5,000 is probably a happy middle.
06:03
But, you know, I drive a truck.
06:06
I drive a GM truck and a Chevy Silverado.
06:09
It's got the maintenance reminder on it.
06:12
I cannot let that thing get below 20%,
06:15
but that's what General Motors says.
06:18
I mean, I've tried one time.
06:20
I think I was at 28 and said, add oil.
06:23
You know, I'm out on that.
06:26
I just 5,000, 7,500.
06:28
That's probably as far as 7,500 is absolute maximum.
06:32
I would go on my personal.
06:34
And so that's what I recommend to our guys.
06:36
5,000, 7,500, anything more than that.
06:39
All right, next question up.
06:41
What's one dealership metric you wished every GM would pay
06:46
Fixed stops every day.
06:49
Well, they pay attention to every single one.
06:52
What are you talking about?
06:53
Yeah, I'm looking at a lot of them.
06:55
No, we're a scorecard and company.
06:57
We look at all the metrics, you know.
06:59
What's the most important metric you have for fixed stops?
07:03
They all play so well together.
07:06
I mean, you could sit here and say ELR.
07:08
I think somebody commented on this earlier, ELR.
07:11
But, you know, you can change your ELR with your hours
07:15
They kind of do this little teeter-totter thing.
07:18
You can't look at just one.
07:20
One doesn't tell the story.
07:21
You have to really call it five right in front of you.
07:25
You know, like, yeah.
07:26
Your effective labor rate is a percentage of your door rate.
07:28
That's obviously important.
07:30
But so is hours per RO.
07:31
And we can't really just give up a bunch of hours per RO
07:34
to get our effective labor rate where we want it to be.
07:37
You have to look at those together at the same time.
07:39
And, you know, sales and upselling, the video percentage,
07:45
how much have we increased since we've gotten good at it?
07:49
I trend my customer pay dollars for all my service departments.
07:54
I have it on the screen now.
07:56
It goes back to 2016 and it trends every month.
07:59
And when you look at-
08:00
And what's the trend?
08:05
But, you know, it dipped in there with a little bit with COVID,
08:08
you know, and some COVID lasts a little longer than others
08:11
with all the different brands.
08:13
Everything's a little different.
08:14
Some are doing better than others today.
08:16
But when I chart customer pay trending along on a report
08:21
next to our video penetration, those two correlate as well.
08:25
My stores that are the best at videos have the biggest CP increases.
08:32
You can't just look at one.
08:33
You really need to pay attention to all.
08:36
So then that leads us to our last question of the roundtable for today.
08:39
What's the one strategic move a large dealer group
08:42
should make March of 2026 to win in the coming year?
08:48
I mean, hopefully they're already doing everything right.
08:52
How many are doing everything right?
08:54
That's not possible.
08:56
Otherwise, both of us would be out of a job.
08:58
All three of us would not have a job.
09:01
I mean, it's customer focus.
09:02
I mean, I think that's-
09:03
I mean, I think that's, you know,
09:04
it seems to be what Ryan's-
09:05
Ryan refers to a lot as the culture which is taking care of your customer.
09:12
Well, Ryan and Wes, we absolutely appreciate both of you joining us
09:15
for this special edition of Fixed Ops Friday.
09:18
Went a little long because of some tech and because of some breaking news.
09:21
So we appreciate both of you for being on.
09:23
Thanks for joining the roundtable today.
09:25
Yeah, thanks for having me.
09:29
And to our loyal daily dealer live audience,
09:32
we say thank you for joining this episode on this Friday, March 20th.
09:37
Thanks for watching Daily Dealer Live,
09:39
where you break down the biggest moves in the car business as they happen.
09:43
Don't forget, we're live here every Monday, Wednesday, and Friday.
09:46
So if this is your world, hit like,
09:48
hit subscribe, turn on those notifications,
09:50
so you never ever miss a beat.
09:53
We'll see you next episode.