00:00
Allright,welcometotheDougHornerShow.
00:02
IamherewithTylerAstorgofiPacket.
00:05
Tyler,thankyousomuchforbeingherewithmethismorning.
00:09
Hey,it'sgoodtobehere,Doug.
00:11
So,Tyler,it'sI'veknownyouforalongtime,right?
00:15
GoingbacktoourdaysdoingdealertradesinMercedes-Benzland,butyoualsoIalsoknowyouinadifferentcapacitybecauseyouumarepartoftheiPacketfamily,whichisaproductthatI'vebeenusingformyentireuhcareeratMercedes-BenzandNorthOlmstead,whichiscomingupon10yearsnow.
00:34
SoIwantedtouhkindofgobacktothebeginningandyouknow,whatistheAstorgfamily'shistoryinthecarbusinessandwhatwasitlikegrowinguparounddealerships?
00:44
Yeah,um,somyuhgrandfather,JoeAstorg,ummatter-of-fact,Parkersburg,WestVirginia,that'swheremyentirefamily'sfrom.
00:54
Umwasmoreorlesssellingusedcarsontheside,uh,wasworkingatalocalchemicalfactoryumandjusthadapassionforcars.
01:04
Sohe'dbuythem,he'dflipthem.
01:07
Thatwaskindofhisthing.
01:08
AndIthinkjustbydoingthatforseveralyears,hethoughttohimself,hey,maybeIcanstartadealershipanddothisasafull-timejob.
01:19
Soumthat'skindofhowitstarted,southsideofParkersburgisalittleusedalot.
01:24
Um,IthinkitwascalledIndianVillage,iswhatitwastraditionallycalledororiginallycalledwhenhefirstbegan.
01:30
Andthatuhlotallowedhimtoaffordhisfirstfranchise,whichwasBuick.
01:38
Sokindofhowhegothisstartinthecarbusinessandcertainlygavemyfamilyalotalotofopportunityovertime.
01:46
Sowhenyouwereyoungasakid,wereyouaroundthedealershipalot,ordiditkindofwasitathingmaybealittlelaterinlifethatyoucametoit?
01:55
Oh,wewewerewewereinitforsure.
01:58
Uhmatteroffact,atthetimewewerelivinginanapartmentumrightbehindit.
02:03
SoumSevyandI,youknow,itwhetherifitwasafterschoolorwhatnot,we'dgointothedealershipandtrytofindmymyoldmanormymydad,PaulAstorg.
02:12
Anduh,orforthatmatter,youknow,onSundays,wewerealwaysintherebecausemydadwasintheservicedrive,closingoutticketsanddoinghisthing.
02:19
Soitwasjustaplacethatwewerecomfortablewithandandcomfortablein,andaplacethatreallyumI'vebeenineveryeverydaysinceIcanremember.
02:30
Soforlistenerswhodon'tknowiPacketyet,walkusthroughwhattheoriginaliPacketproductwasandwhatdiditsetouttosolve?
02:39
Whatproblemwasittryingtosolve?
02:41
Whatwasbrokenaboutuhhowcardealerswerepresentingtheirinventorybackwhenyoustarted,right?
02:45
LikekindofgivemethestoryofhowiPacketcametobealongsideofyouknowtheAstorgdealerships.
02:52
Yeah,soumkindofgoingback,um,westarteduhaonepricephilosophyatourstore.
03:00
Umit'sbeenabout30yearsnow.
03:03
Andum,soyouknow,mydadwasoutatadealermeetingforFordorsomethinglikethat,ranintoadealergroupthatactuallywasdoingitatthetime,andhethoughtthatmakesalotofsense.
03:14
Sothatwasatthecoreofhowwedobusinessistransparently.
03:19
Um,andatthetime,youknow,whensomebody'smoreorlessaskingforalesserpriceorwhatnot,wecertainlyhaveuhareasonforourpricing,arhymeandreason,butwedidn'tnecessarilyhaveanydatatobackitup.
03:32
Umsoumyearsago,mygrandfatherwasactuallybuildingthesepackets.
03:38
Uh,wecalledthemworry-freefolders.
03:40
Anditjustallowedumthesalespersonorwhoever'sshowingacartoshowallthedetailsonthecartobuildtrust,sharethatthetransparencybehindwedohowwedobusiness,andultimatelyspeaking,justawaytoconversatelessonthebottomdollarandmoretowards,hey,whatmakesourvehicleunique?
04:00
Um,becauseeverybodybelievesthat,hey,thecarthatyouhaveisthesameastheonedowntheroadwhenitcouldbetotallydifferentbaseduponhowitwasreconditionedorthecultureofthedealershiporthepartsthatwereputonit.
04:11
There'ssomuchtoit,asyouknow,Doug.
04:12
Yeah,don'tyoulovethat?
04:14
It'slikeeverybody'sfavoritethingtodowhenthey'reshoppingforacarisoh,I'mlookingatthisoneatthisotherdealership,andthenyoupullitupandyou'relike,wow,thesetwothingsarenothingalike,right?
04:24
SoI'llneverforgetatthetimeumIwasusingthematourusedforwardstore.
04:29
Iwaslearninghowtotosellcars19yearsold.
04:32
Andyouknow,ititwasreallyapartofourprocessbecauseafterthetestdriveandweandwefoundthat,hey,thisvehiclekindoffitswhattheywerelookingforuhinavehicle,wewouldinvitetheminside.
04:44
Hey,IhavealotofinformationI'dliketoshareonthiscar,anditwasjustapartofthevaluebuildingprocessbeforewegottonumbers.
04:51
Um,becauseagain,wewantedtoshareouruniquenessuhinthevehiclethatwehave.
04:57
Yeah,andumthat'skindofhowitbegan.
04:59
Now,theproblemwiththat,Doug,wasifIwassharingapacket,thesalespersonbesidemecouldn'tshareapacketbecauseIIhadit.
05:06
Becauseitwaslikeaphysicalpacket.
05:08
Itwasaphysicalpacketinsideofliterallyinsideofafilingcabinet.
05:13
Whatkindofinformationwasinsidethatpacket?
05:16
Yeah,wehadweprintedoffCarfax,uh,weprintedofftherepairorderreceipts,JDPower,oratthetimeitwasinADA,uh,andsomeinformationlikewhybuyfromourstore.
05:30
Sothosearejustfourorfiveslides,althoughweactuallyhaveoneoftheoriginalpacketsinParkersburg.
05:37
Um,IthinkSevihasit,butI'msurethere'safewotherdocsthatI'mmissing,butyeah,moreorlessthat'swhatwasintheiPacketorthepacketsatthetime.
05:46
Andsothatwasprettyuniquebackthen.
05:50
You'resharinginformation,andandthiswasitsoundslikeitwaskindofbirthedfromusedcars,right?
05:55
WhereaCarfaxisgoingtoberelevantandandserviceuhrepairorders.
06:01
WhatwastheImean,I'msurealotofpeoplelookedatyoulikeyouwerecrazytobesharingsomeofthisinformationbackthen,right?
06:08
Backbeforetransparencywasuhmoreofacommonthingorevenabuzzwordlikeitseemstobetoday,right?
06:15
Imean,thatwereyouprobablyoneoftheonlydealershipsdoingthatsortofthingbackthen?
06:20
Youknow,Idon'tknow.
06:21
Likewe'veranintoalotofstoresthatumhadpaperfoldersinaway.
06:27
Thatwasapartoftheirstrategy.
06:29
And,youknow,Ithinktheclientsalwaysreallylikedit.
06:33
Anditandandwhentheycomeandseeyouatadealershipandyousharethatinformationwiththem,itgivesyouastrategiccompetitiveadvantagebecausewhentheygodowntheroad,they'renotgonnaseethethatinformation.
06:46
Hey,ifyougodowntheroad,askforthisinformation,theycan'tprovideittoyou.
06:52
Um,andjustrememberme,right?
06:55
Igaveittoyoutransparentlyupfront.
06:58
Youdidn'tevenhavetoaskforitbecauseit'simportant.
07:00
Yeah,soIbecamemoreoflikeauhuhyouknowanadvisor,ifyouwill,whilebuyingacarversusactualsalesperson.
07:08
Andalotoftimescallmeback,say,hey,you'reright,theydidn'thaveservicerepairhistory.
07:13
Likeyouspentthreegrandonyourcar,Idon'tevenknowwhattheyspentontheircar,andyouknow,thatwoulddrivethembacktous.
07:22
Soatwhatpointthenwereyoualllike,hey,let'sspinthisintoitsownbusinessandstartsellingitandsharingitwithotherdealers,right?
07:33
Becauseatasatacertainpoint,you'reyou'rerealizingthatallright,acompetitiveadvantage,wecanimproveuponit,essentiallydigitizeit,butthenalsomakeotherpeople,otherdealersaware.
07:44
Soyou'rekindofgivingupthesecretsauceinaway,butthenspinningitintoabusiness.
07:48
Sohowdidthatcometobe?
07:50
Youknow,Iwouldhaveto,Iwasthere,althoughI'dhavetoaskuhmyolderbrotherSeviAstorgandumourCTOandco-founderuhKenWilkinson.
08:02
Umtheyaremuchmoreaffluentatthatearlyprocess,butIdorememberitjustfrombeingatthestoreandobviouslybeingclosewithmyolderbrotherSevi.
08:12
Um,itwasjustthetheideathatthisinformationshouldbeabletobeshared.
08:18
Um,youknow,ifsomebody'scallingoverthephoneorsubmittinganinternetleadandthey'reaskingquestionsaboutacar.
08:24
Youknow,atthetime,youknow,Ithinkwehadflipphones.
08:27
Idon'tevenknowhowyouwouldeventakeapicturetosendtosomebodytoillustratetheinformationyouhavetoagainuhcontinuethatvaluebuildingstory.
08:37
Sohisthoughtwashey,let'stakethisinformation,let'sputitupintothecloudandsomehowmakeiteasyforasalesconsultantorsomebodyatadealershipleveltobeabletoshareit.
08:49
Um,andthat'showitallstarted.
08:52
Souhverybasicideathatstartedwitharefreefolderthatalotofdealersweredoing,wecertainlyweredoing,andhejustdigitizeditandmadeitinawaythatwhereeverythingwasheading,whichisrighthereonthisphone,orforthatmatter,throughemailorwhatnot.
09:06
Soyeah,it'spretty,Imean,it'sreallyageniusidea.
09:10
Umintheearlydays,whatwasitlike?
09:13
Youknow,whatdoyourememberaboutsellingiPackettotheearliestdealersthatwerebringingiton,right?
09:19
Becauseagain,yes,everybodymaybehadtheirfoldersandwhoI'msuresomeofthemhadcarfaxesinthereormaybebuildsheetsororyouknow,somebasicinformationaboutthecar.
09:31
Butwhatwastheinitialfeedbackfromdealerswhenyou'regoingtothemandandbasicallytryingtosay,hey,wewantyoutoshareeverythingaboutthisusedcarwitheverybodythat'sinterestedinbuyingit?
09:41
Youknow,whatwasthatinitialfeedbacklike?
09:44
Youknow,IIagainhearingfromSevyabouttheinitialfeedbackandandsomeoftheearlyteammembersatiPacket,itwasprettytough.
09:54
Um,youknow,therewerescenarioswhereIknow,youknow,wetheretheretherecouldhavebeenshowroomsthatsaid,hey,youneedtofindthedoor.
10:02
Um,butIIthinkweknewfundamentallythatclientswantedtoumuhpurchasewhentheyfeltcomfortableandwhentherewastrust.
10:14
Andumthiswasourwayofdoingthatatastorelevel.
10:17
Itworkedsowellforusonsomanydifferentlevels,anditmadesuchgoodcommonsensethatweknewjustwithtime,pressure,andconsistencythatthiswouldcatchon.
10:28
Andyouknow,asyouknow,Doug,liketransparencyisyouknowvery,veryimportantinthisdayandage.
10:33
Andmaybethenititwasn'tquiteasmuch,butumitit'ssomethingthatwe'vebeenmasteringfor14yearsnowbecauseagain,itworkedforusatastorelevel.
10:45
Um,andanyways,justuhtoanswerthatquestion,verytough.
10:49
Butwealsoranintosomestoresthatwerelike,that'sbeautiful,that'sbrilliant.
10:55
Andum,andthat'sandthatwasobviouslyprettyexcitingaswell.
11:00
Well,soare14yearsisthatthetotalageofthecompanyatthispoint?
11:05
Ithinkit'sabout14years.
11:07
Umandjustlookingback,IknowthatoneofthefirstaccountsthatwehadwithiPacket,mygrandmother,um,shewasgoingthroughsometreatments.
11:17
Andum,youknow,theywerevisiting,IIthinkitwasitwasoutwestsomewhere.
11:22
AndumSevythought,well,whileI'mwaitingformygrandmothertogethertreatments,right,withwithmydad,hey,dropmeoffatthisdealership.
11:31
IwanttoshowthemwhatIgot.
11:33
Andanyways,um,soagain,there'ssomethatthatdidn'tnecessarilywanttoshareuhthereceipts.
11:39
Theydidn'twanttoumuhIguessprovidealltheinformation,oratleasttheydidn'tseeitatthetime.
11:45
Anduhthenthereweresomethatwerelike,Ilovethat.
11:48
Soyeah,Imeanit'sIdon'tknow.
11:51
I'vealmostneverknownuhaworldwithoutiPacketinit.
11:56
It'sjustsuchait'sit'sagreatproduct.
11:58
AndIcantellyou,I'msureyoucanseethesenumbers,right?
12:01
Mysalesteamusesiteveryday,right?
12:05
Someofthemuseitlikeexclusive.
12:07
Ihavetoremindthemsometimeswhenthey'reespeciallyonnewcars.
12:09
I'mlike,hey,remember,yougottolookintheuhMercedes-BenzinventorytooltoconfirmavailabilityonanewcarbeforeyoujustsendsomebodyaniPacketbecausethat'showmuchtheybelieveintheproduct,right?
12:21
Thatthey'rethey'relike,oh,I'dratherbeinthereforanythinginventoryrelatedthanevenourownuhkindofmanufactureinternalsystems.
12:29
Butum,whatIwhatIwanttotalkaboutiswhatIbelievetobeyournewestproduct,iPacketvalue,whichI'venowbeenusing,Idon'tknow,foruhseveralmonths,andIabsolutelyloveit.
12:41
UmIthinkthatit'soneofthesinglemostinnovativeuhpiecesoftechnologytoinfluencekindofboththeappraisalprocessandthemerchandisingprocessforausedcar.
12:53
Andwe'llgetintothat.
12:55
I'mjustcurious,whathowdidiPacketgofromthesesortofdigitizeddealjacketsuhtothistoolthatisessentiallyhelpingyoutodeterminewhatausedcarisworth?
13:09
Umhowdidhowdidthisproductgetkindofdreamtup?
13:14
Yeah,soIIthinkthatumtherethat'sthat'salonganswer,butIthinkitultimately,youknow,umyoubroughtuphowyoursalespeopleareusingthesepacketsandbeingsentouteveryday.
13:29
Andwhatwefoundanareawheremanagersreallyuhspendalotoftimeiswithinourstickerpooler,whichismoreorlessjustacherryontoptoouriPacketplatform,justbeingabletogetover30OEMuhverifiedstickersumuhcoveragewithintheiPacketsystem.
13:48
Andwhatwe'refindingisthatthestickerpullfeatureusedbymanagers,ifItoldyouhowmanymillionsofstickershavebeenpulledoutofoursystem,itgeneratedthequestion,well,whyandhowisitbeingused?
14:00
Andyes,someofthatismerchandising.
14:03
Youknow,somethingscan'tbepickeduponabasicVenexplosionlikeoptionalequipmentandyourcars,youknow,specificallyatMercedes-Benz,definitelyhashavethosewithothers.
14:14
And,youknow,westartedaskingthequestionwhy,butmostimportantly,youknow,atastorelevel,again,goingbacktotheDNAofiPacketandtheDNAofreallyanyproductthatweofferatiPacketissolvinganeverydayproblem.
14:28
And,youknow,atumwhenIwasworkingatthestores,um,workingatourdealershipininCharleston,WestVirginia,uh,pre-ownedmanagerforforoversixyears.
14:39
And,youknow,IIstruggledalotofwiththecompetitivesetsjustbecauseourcars,specificallyatourstore,werejustsouniqueattimes.
14:50
AndumIwouldlookintothesecompetitivesets,whetheritbeonsomeofthedifferentplatformsorforthatmatter,inintheappraisalandpricingtoolthatwewereusing.
15:01
Anditjusttreatedeveryvehiclelikeitwasthesame,similarto,forexample,likeeveryusedcarthesamewhenweknowthatthey'renot.
15:10
Theyhaveitsownhistory,theyhavetheirownDNA.
15:12
Andwhatwewhatwefoundwasistherewasjusttheselargevariationsinoptionsthatcouldn'tbepickedupwithoutmanualinputandno,you'rehopingyou'reright.
15:24
Um,andthat'sanareawherewewantedtoaddtransparency.
15:27
SoIthinkatthefundamentalsofwhatwedoatiPacketistospreadtransparency,andthat'swhatwe'redoingwithiPacketvalue.
15:34
Yeah,IImeanitmakessense.
15:37
Theatypicalappraisaltool,andI'mnotgonnapretendtohaveusedthemall,butIknowthatgenerallyspeaking,anappraisaltoolisaVINdecoderattheendoftheday,right?
15:47
It'sgonnadecodewhatthemakeandmodelandyearisofacar,andthenyou'regonnagoinandinputthemiles,andyou'regonnalinkituptoCarfaxorAutoCheckorwhateveryouuse,andthatgivesyouanideaofwhatthevehicle'shistoryis.
16:00
Um,andthat'sallwellandgood.
16:02
Butlikeyousaid,everyVIN,youknow,isessentiallyjustcomparedtoeveryotheryearmakemodel,andthendoingabasicmileageadjustment,andthenyoukindofhavetomanuallyfigureouttherest.
16:19
AndIthinkmaybeyearsandyearsago,thatprocessprobablyworkedalotbetter.
16:25
ButI'dsaynowadaystherearealotofmanufacturersthathavetrimlevels,somethatdon't.
16:29
Imean,Mercedes-Benzkindofdoes,butreally,evencarevenbrandslikeFord,whichhave,Idon'tknow,15differenttrimlevelsforanF-150,therearestilljustamassivenumberofpackagesandoptionsandcolorsandeverythingelsethatthesetruckscouldhave.
16:49
Anditmakesamassivedifferencewhenyou'regoingtoresellthatcar.
16:54
Um,becauseIthinkifmostcarbuyersarehonestwiththemselves,orright,Ithinkwe'reallthisway,thatwhenwe'reshoppingforausedcar,like,yeah,we'vegotacertainmaybeyearrangewe'relookingforandmileagerange,andmaybewewantthecarfaxtolookacertainwayandwewantittobeacertaincolor.
17:11
Butafterthat,we'relookingforhowmuchstuffcanIgetformymoney,right?
17:16
Iwantthecoolestwheels,Iwantthemostoptions,Iwantthis,that,andtheother.
17:19
Andifyou'reappraisingcarsandyoucan'taccuratelyandadequatelydeterminewhatisthiscarthatIhavethatI'mtryingtoappraise,orwhatisthiscarthatI'mtryingtoresellhaveversusthecompetitiveset,you'regonnaeitheryou'regonnamisappraiseitandyou'regonnamispriceit,right?
17:36
Andandthat'swhyI'mlovingiPacketvaluesomuchbecauseit'stakingwhatusedtobeaverymanualprocessandmakingitalmostimmediateformenow.
17:47
Sonotsloppy,butIjustIdon'tliketo,Idon'twanttohavetotake30minutestoappraiseacarandandmerchandiseitwhenIcoulddoitinthreeminutes.
17:58
Yeah,Imean,IIthinkitgoesbackto,youknow,Doug,somebodycomesin,theywanttobuyauhbrandnewGLEfromyou.
18:04
They'reveryspecificinwhattheywant.
18:06
Youknow,notonlydotheywantthewhite,theywantthemacchiatabeige,theywanttheAMGline,theywantthenightpackage,theywantthepinnaclepackage,theywantveryparticularoptionsandequipment.
18:17
Andwhatwe'refindingisiswhenthatvehiclethatwassouniquetothatclientwhentheyboughtitnewgetstradedin,sometimesitbecomesdistorted,right?
18:28
Andweknowthatbecausenotonlyaretheyinterestedinitwhenthey'rebuyingitnew,butwecantellbaseduponthedata,thenumberonemodulethat'sviewediniPacketistheMSRPtab.
18:41
It'syouknow,peopleareinterestedinwhatoptionsandequipmentareinacar.
18:45
So,youknow,Ithinkultimatelyspeaking,whatwe'retryingtodoisaddthattransparencytotheequationbecausewhenyou'repricingthesecars,orforthatmatter,appraisingthesecars,ifyou'retreatingaavehiclethat'snotaverage,thatwasn'taveragewhenitwasnew,itwasveryuniquelybuiltanddecidedon,thesameasanaveragecaronthemarketplace,thenthat'swhereit'slike,okay,well,there'svaluethatmaybethethethepersontradingitindidn'tget
19:15
thattheyshouldhavegotten.
19:17
Andthenthere'svaluethatthebuyerisgettingthatyouknow,ultimatelyspeaking,isit'sgreat,butalsothatdoesn'tmeanthat'swhatthevehicle'sworth.
19:27
AndIguessmypointtothisisattheendoftheday,youknow,ifyoucouldchooseavehiclethathasayouknow,youhavetwovehicles,they'repricedthesame,andonehasabadCarfax,onehascleanCarfax,Doug,whichoneareyougonnabuy?
19:41
CleanCarfaxeverytime.
19:44
Andifyouhaveavehiclethathasseventhousanddollarsmoreworthofequipmentthantheother,andthey'rebothpricedthesame,asabuyer,whichoneareyougonnabuy?
19:55
Yeah,theonethathasseventhousanddollarsworthofoptions.
19:58
Andandthatisthetrueproblemandthetruetransparencythatwe'readdingumtotobenefittheclientandalsotobenefitthedealershipwithourcoverage.
20:09
Um,thatyouknow,again,we'vebeenwe'vebeenreallystoringandbuildingforforquitesometimenow.
20:16
Imean,II'velearnedfromsomeverysmartpeopleinthecarbusiness,andIgivethemallthecreditforthereasonforthefactthatI'mI'mheredoingthisstilltothisday.
20:29
IknowthatifIhadn'tgottenthetrainingearlyonthatIdid,I'mquitesureIwouldn'thavehadthesuccessthatI'vehadincarsalesandIprobablywouldn'tbemakingcontentandsoonandsoon.
20:38
OneoftheveryfirstthingsthatIlearnedwhenIandIstartedsellingusedcars,bytheway.
20:45
Ithinkalotofpeopletodaythinkofme,theythinkofnewcarswhentheythinkofme,butusedcarsarearewhereIgotmystart,andI'mverypassionateaboutthembecausetome,theusedcarmarketisveryefficient.
20:57
Newcarsareveryinefficient,right?
21:00
Becauseyoucangenerallygetthesamenewcaranywhere,moreorless,butusedcarsarelikehouses,right?
21:06
They'reall,orsnowflakes,whateveryouwanttosay.
21:08
They'reallalittlebitdifferent,nomatterhowsimilartheymightseem.
21:11
AndIlearnedintheverybeginningthattherearefourthingsthatdeterminethevalueofacar.
21:18
Andthisisimportantwhenyou'reappraisingitandimportantwhenyou'reresellingit.
21:22
Andtheywerecolor,equipment,condition,andmiles,right?
21:26
Color,prettyself-explanatory.
21:27
Alotofpeoplehavecertaincolorsthattheywanttodriveorabsolutelywillnotdrive.
21:32
Andit'sgenerallyhowalotofpeoplebegintheirsearch.
21:34
Numbertwoisequipment.
21:36
Andthistomeendsupbecomingoneofthemostimportantthings,especiallyforcertaintypesofcars,right?
21:42
Ifsomebody'slookingforanoldToyotathat'sgoingtobefortheirkid,getthemtoandfromschool,theyprobablydon'tcareverymuchaboutthis.
21:49
Butifyou'regoingtobuyaluxurycar,asportscar,evenacommutercarthatyou'regonnareallyspendalotofmoneyonandyouwantittobe,youknow,everything.
22:00
Thatyou'veeverdreamtofonmore,thisiswherepeoplegetreallyhungupiswhatoptionsdoesithave?
22:05
DoesithavethattrimpackagethatIwant?
22:07
DoesithavethewheelsthatIwant?
22:08
Doesithavethedriverassistancepackage?
22:10
Alloftheseotherthings.
22:11
Sothereissomuchvaluethatisaddedthere.
22:15
Anditisgenerallylostinmostappraisalsbecause,likeyousaid,ifIputaGLE350intoanappraisaltooltoday,andIlet'ssayit'sa2024andit'sgot20,000milesonit,it'sgoingtotellme,it'sgoingtotreatwhatwasoncea$65,000GLEbrandnewthesameasan$85,000GLE.
22:38
Andifyoudon'tbelievethataGLE$350couldbe$85,000brandnew,Iassureyouitcanbe,right?
22:43
I'vesoldplentyofthem.
22:45
There'sthatmanyoptionsandmore.
22:48
IfItreatthosetwocars,onethatwas65Kbrandnewandtheonethatwas85KbrandnewasthesamewhenI'mappraisingit,thenI'mgoingtovastlyoverappraisethe65Kcar.
23:03
AndI'mgoingtovastlyunderappraisethe85Kcar.
23:07
Becausewhenyou'relookingatthatcompetitiveset,unlessyougothroughonebyoneandpickthemapartandseewhatallthosecarshave,you'rejustgoingtogetaverages,right?
23:14
Imean,that'swhatappraisaltoolsdo.
23:15
Theygiveyouaverages,averagemiles,averagelistprice,youcanseeaverageauctionprice,KBB.
23:24
Andcarsarenotaverage,right?
23:28
AndsoIjustthinkthatI'vealwaysdreamtup,orI'vealwaysthoughttomyself,like,Iwishtherewasamoreeffectivewaytoappraisecarswiththeunderstandingthattheyareextremelyunique.
23:42
Andthenthistoolcomesaroundandit'skindofliketheit'salmostlikeI'mseeingnowinreallifethethingthatI'vesortofbeenimagininginmyhead.
23:50
AndsoIjust,andI'mnottryingtoblowsmokehere.
23:52
LikeIjusttrulydothinkthatitissoinnovativethatuhthat,youknow,veryquicklynow,IputsomethingintoiPacketvalue.
24:00
AndwhenI'mlookingatacompetitivesetnow,I'mgonnaseewhatwereallthesecarsbrandnew?
24:06
That'sanextrapieceofinformationserveduptomeinaverycleanlittlesheet,ifyouwill,thatIwouldhavewouldhavebeenacompletelymanualprocessbefore.
24:15
SoimmediatelyIcansee,isthisacarwithalotofequipmentoristhisacarwithlittleequipment?
24:20
AndIcanadjustaccordinglyonthefly.
24:22
Andthatprocessnowis30secondsinsteadof20minutes.
24:26
Soit'sit'sverycoolwhatwhatthisdoes.
24:30
Well,uhpreIobviouslylovehearingthefeedback.
24:34
Um,youknow,Iknowyou'vebeenusingitforquitesometime,andyouknow,Ithinkultimatelyspeaking,youknow,whenyou'relookingatavehicle,you'reexactlyright.
24:41
Youknow,yourmakemodeltrim,odometerisimportant,right?
24:45
Youknow,youwanttoknowwhattheodometerisonthatvehicle.
24:49
Youknow,onehas20,000miles,onehas30,000miles,couldcouldshiftthevalueofacar.
24:54
Andtheonethingthatwecan'tseewithoutmanualinput,andoftentimesatadealershiplevel,wedon'thavetime.
25:02
Likethere'swehaveallthisgoingontryingtouhrunourdepartmentorrunourareaofthebusiness.
25:08
Wedon'thavetimetogetthatfarintothedetailseverysingletime.
25:13
Andum,youknow,attheendoftheday,addingtransparencytothethataspectofthebusiness,itreallybenefitstheclient.
25:21
Thatcarthattheysingle-handedlypickedoutandselectedthoseindividualoptionsbecauseitwasuniqueandbecausethey,youknow,theywantedthatAMGline,asImentioned.
25:31
Um,andatthesametime,itreallyshareswiththedealershipataquickyouknow,snapshot,asyoumentioned,clickofabutton,exactlywhattheyhaveandexactlywhatthemarkethas.
25:42
AndIthinkthechallengethatIhadatastorelevel,youmightrelatetomeornot,maybemanyofourviewers,isalotoftheoptionsthatwe'reclicking,um,greatinformation,right?
25:54
You'rewe'reclickingontheoptions,maybeinourappraisalandpricingtool.
25:57
And,youknow,thatthat'sgettingamarketprofilethatwe'rethenclimbinginto.
26:02
But,youknow,alotoftimesthat'sbecause,youknow,alotoftheinformationwe'relookingatisbaseduponmanualentry.
26:08
Likeit'sshare,it'sshowingupinthosebuckets.
26:11
Um,andwe'reheavilyrelyingonprocessesacrossthenationthatsomedealersfollowperfectly,othersmaybenotsomuch.
26:21
Whereoursystem,itdoesn'trelyonanyofthat.
26:24
It'sjustgeneratedwithumthefundamentals,uh,whichis,youknow,again,notonlybasedupontheyearmakemodelandtremendous,butrightoffthatMonroelabelthatwe'vebeencollecting.
26:36
No,you'reexactlyright.
26:37
Imean,it'swe'vewe'vebeendownthisroadtogether.
26:41
Thethecompetitivesetsaregenerallynotreliablebecause,yeah,they'retheyarerequiringonthemanualentryofdealersacrossthecountry.
26:49
And,youknow,mostpeoplearenotgonnatakethetimetogointhereandreallyclickeverythingthatacarhas.
26:55
Sotohavethisdonequickly,um,it'sbeenagamechanger.
26:59
Imean,I'mjustgonnagooutandsayitthat,andIdon't,Idon'tsaythatlightly.
27:03
Um,it'sveryrarethatI'mimpressedbytechnologyinthecarbusiness.
27:08
Ithinkgenerallyspeaking,thecarbusinesssuffersfromuhaseverelackofgoodtech.
27:14
Uhbutthisisatoolthatinsomewaysit'ssosimple,inotherways,it'sjustgenius.
27:19
Um,butyouknow,it'sandagain,it'sit'spartoftheappraisalprocess.
27:23
It'snottheentirething.
27:24
Andit'spartofthemerchandisingprocess.
27:25
It'snottheentirething,butitis,man,itjustisreallyatimesaverininalotofways.
27:32
AndI'mcurious,haveyouseendealersthatareusingitdoinganythingcreativewithit?
27:39
Imean,Iknowit'sstillarelativelynewproduct,butuh,isthereanybodythat'susingitinareallycreativewaythatyoudidn'tnecessarilydreamup?
27:47
Um,matteroffact,um,youknow,ourdealers,whentheywerelookingatthesecompetitivesets,andtheywere,youknow,allthetimewe'regettingthis,hey,youhavethisvehicle,butIseeoneoverherethatislessorovertherethat'slessorormore.
28:05
And,youknow,Ithinkwhattheysawwasisallofthesevehicles,allofthepricing,andwherethepricingisinrelationshiptoitsoriginalequipment.
28:16
Andthey'relike,Iwanttosharethatwiththecustomer.
28:20
Iwanttosharewiththemandinformthemthat,hey,listen,ourvehicleisuniquelybuilt.
28:25
Ourvehiclehasmoreoptionsthansomeoftheonesthatyou'relookingatoutthere.
28:29
Andthat'showwe'reabletonowaddthemarketvaluesummaryrightwithintheiPacketagaintoaddadditionaltransparencyfortheclientthatallthesevehiclesaresouniquelybuiltandthey'renotallapplestoapples.
28:43
Um,theymightlooklikeit,butinfact,they'renot.
28:47
Sothat'sanareathathasjustexploded,Doug,um,uh,whenitcomestothemarketvaluesummary.
28:53
Andthe,youknow,thatmakesalotofsenseformebecausetheiPacketprogramwasmadefor,intheverybeginning,forsalespeopleandtobeusedbysalespeople,aswellasmanagers,butprominentlysalespeople.
29:07
AndnowtheyhavethatjustificationattheirfingertipsinsidetheiriPacketthatthey'resendingout.
29:13
Andagain,justaswe'rejustifyingourretailvaluebasedupon,hey,wespentthreegrandonourcar,it'sgotnewbrakesandrotorsandtires,andwewentthroughtheworks,andhere'sthechecklistandthemechanicalchecklist.
29:24
It'sgotcleanCarfax,hasalltheinformationheretomakeagooddecision.
29:28
Oh,bytheway,letmeshareourstrategyandwhy,infact,we'repricedwherewearebaseduponlivecomp.
29:36
Sothat'ssomethingthatwedidn'tdreamup,butthedealershipsdreamedup.
29:40
Andthat'sthebeautifulthingaboutiPacket,isalotofourproductisformedumthroughdealerideasandsolvingeverydayproblems.
29:49
Well,notonlythat,um,onequestionIdidwanttoaskyouisthatwhatdoyouthinkisuniqueaboutiPacketinthesensethatum,youknow,youallstillhavethedealerships,right?
30:01
Idon'tknowhowmuchtimeyouspendinthedealerships,ifthat'sstillpartofyouryourday-to-dayororSeviesforthatmatter.
30:07
But,youknow,Ithinkalotofautomotivetechcomesfromuhtwodistinctbuckets,eitherpeoplethatarehavebeenlikedealershipadjacenttheirentirecareers,orformerdealers,right?
30:22
Oh,Iusedto,youknow,IusedtoworkinadealershipandthenIleftandIwentandstartedthiscompany.
30:25
ButbutiPacketstillkindofexistsalongsidetheAstorgdealerships,right?
30:32
SodoyouthinkthatthatgivesyouauniqueperspectivetohelpcontinuetoshapewhatiPacketdoesandwhathowit'sbestusedbecauseyou'restilllivingiteveryday?
30:41
Yeah,Ithinkwe'reveryuniqueasacultureinthatway.
30:44
Um,youknow,justoverallteam.
30:47
IthinkwedidtheaccumulationofautomotiveexperiencethatworksatiPacket.
30:52
It'soverlike280yearsofexperienceinsideofiPacketatastorelevel.
30:57
SoIthinkourcultureisbuiltaroundthat.
30:59
Itallowsustobeabletorelatetoourclient,allowsustobeabletoenhanceourproductinwaysthatareactuallyimpactful.
31:05
Becauseagain,it'sonethingtoseesomethingfromtheoutsideandsay,hey,thislookslikesomethingthatmighthelpsomeone.
31:13
It'sawholenotherthingwhenyou'vedoneit,andthat'stheonlythingyou'vedonefor15years,andyouseesomethingandyou'relike,Iknowthissowellthatthismakessomuchsense.
31:24
AndIthinkthat'stheDNIofourculture.
31:28
Um,Imean,toanswerthequestion,youknow,I'myouknow,sittingatthedealershiprightnow,IIcan'thelpit.
31:34
Um,butattheatthesametime,iPacketkeepsmesobusythatumIIIcansaythatIdon'thaveuhalotoftimetobeintheeverydayinteractionsrightnow,althoughumstilllovemyvaluedcustomersthatcallmeeverydayandwanttomakesurethey'retakencareofaswell.
31:53
SowheredoesiPacketslashiPacketvaluegofromhere?
31:58
Istherefurtherenhancementsthatarecomingtoit?
32:00
Arethere,Imean,maybesomethatyouaren'twillingtotalkabout,butwhatwhat'skindofnext?
32:04
Whatwhatfutureenhancementscanwecanwelookforwardto?
32:08
Youknow,IlovethisquestionbecauseIthinkattheendoftheday,thepossibilitiesareumI'mgonnasaylimitlessbecauseit'samazingnowwhenyouhaveAIandwhenyouhavepuredata,likenottouched,puredatathatyoucanfeedinthere.
32:27
It'samazingwhatitcando.
32:29
Andwe'reevenexperimentingandincomingoutheresoonwithuhwewe'regonnacallit'smoreorlesscalledARC,averagereconditioningcost.
32:38
Becausewhatwealsohaveisoneofthelargestcompositesofservicehistoryreceiptsumoutthereonthemarketplacetodaybecausewhatinthedealershipplacetoday,prettycool,right?
32:51
Youcanumaskonemanager,hey,whatdoyouestimatethiscarisgoingtoneedintheshop?
32:58
Well,it'ssightunseen.
33:00
Youknow,weclientsaysithasgoodtires.
33:03
Hesentafewpictures,hesaiditwasjustreyouknow,ithadnewbrakesputon,butcan'tnecessarilyseeit.
33:08
Sothere'salotoftrustinvolvedinthat.
33:11
Oftentimes,bigfrustrationisyoudon'tknowaboutallthestuffuntilit'sintheshopbeingdone,right?
33:17
Soyoucanaskoneperson.
33:19
IIalwaysjokearoundbecauseI'mlike,hey,youknow,oneofouruhuhpre-endmanagers,hey,whatdoyouthinkthereconditioningcostwillbe?
33:28
We'llaskthenewcarmanagerandthey'llsaysomethingtotallydifferent.
33:32
Sothere'sthishugegapinwhatpeoplethinkthatthey'regonnaspendandwhattheyactuallyspend.
33:38
Andnowwithourdata,we'regonnabeabletoreallyaddadditionalleveloftransparencytherethat'sneverbeenabletobeseenbefore.
33:45
Sosuperexcitedaboutthat.
33:47
ButIthinkasacultureandasateamhereatiPacket,thethefutureisjustsoendless.
33:54
Um,youhavealargegroupofpeoplethateverydaycometoworkwithpassion,again,hardwork,pressure,andconsistency.
34:02
Um,Ithinkthatwe'rereallygoingtobeabletomakeacontinuedpositiveimpactonthecarbusinessandfordealerships.
34:11
Andyeah,thatthat'sclever.
34:12
Imean,averynaturalprogressionforwherethiscouldgo.
34:15
And,youknow,yougotmethinking,oneoftheinterestingthingsaboutiPacketandallofthisservicedatathatyouhaveisthatyoualmosthavethisadvantageherewhereyou'renotyou'renotaDMS.
34:27
IthinkjnormallythethecompaniesthathavethemostinformationaboutwhatitwouldonaveragecosttoreconditionacarareDMSs,butyou'rekindofDMSagnosticbecauseyouworkwithdealersthathavealltheDMSs,right?
34:40
Imean,soyou'renot,it'snotlikeyoucouldonlypulldatafromthissetofdealersorthat.
34:43
Imean,you'repullingfromyourentiredealergroup.
34:47
AndIthinkuh,orallyourusers,thisisgonnabethat'saasmartplacetogo.
34:52
IthinkthatthatdefinitelywouldbehelpfulbecauseandIdon'tknowifitit'sgonnamaybejustlookatanaverageoverallorifit'sgonnaadjustbasedonthetypeofstoreyouare.
35:02
Imean,becauseuheveryeverystore'sgotdifferentlaborrates,butordifferentlevelsofreconditioningthatyouknow,whatwhat'stheaveragereconditioningifit'sacertifiedcarversusnot,right?
35:12
Imean,notI'msuretheseareallthingsthatyouyou'vealreadybeenansweringinternally,butIcouldseealotofreallycoolpossibilitiesthere.
35:18
SoitsoundslikeyouallareleaningintoAItohelp,youknow,makeIdon'tknow,interestingconclusionsfromallthisdatathatyoudohave.
35:28
Isthatgoingtobekindofbuiltintothetooloristhatjustsomethingthatyou'rekindofusingseparatelytointerpretthedatathatyoualreadyhave?
35:36
Youknow,um,youknow,BobGeorge,he'stheheadofdevelopmentatiPacket.
35:40
And,youknow,heumhe'stheexperiencethathehasinthisworld.
35:45
Ithinkhe'sover20yearsofexperienceinthisworld.
35:48
And,youknow,it'sreallyapartofeverythingwedo.
35:51
Umit'sgonnabeinvolvedinourproducts,it'sgonnabeinvolvedinourprocesses.
35:55
Um,andagain,throughthat,Ithinkit'sjustreallyimpressivewhenyouinput,youcaninputdata,butwhenit'spuredata,yougetwaywell,yougetpureresults.
36:06
Andum,soIthinkwe'rereallyexcitedaboutthedynamicthatcanbringatastorelevel.
36:13
Um,andultimatelyspeaking,impactingeverybodyinvolved,theclient,thedealership,thesalesconsultant,thesalesmanager,um,inapositiveway.
36:21
Becauseagain,IhearoneofthebiggestfrustrationsIhearinthemarketplaceishey,listen,youknow,ittakesalotoftime,um,specificallywhiletalkingaboutiPacketvalue,ittakesalotoftimetofindlike-for-likecomps.
36:35
Youknow,andandtheothersideofthingsishey,there'snothing,there'snotaworsefeelingthangettingin,youknow,gettingacarintheshop,liftingthehood,andgettingarepairwaterthat'sdramaticallydifferentthanwhatyouestimated.
36:47
Becausethatkindofthrowsoffthewholechain.
36:50
SoIthinkit'sgonnabereallyunique,someoftheinsightsthatwe'regonnabeabletoprovidedealers.
36:55
Um,youknow,ifthey'reaniPacketdealer,andthatthey'llbeabletoseeitintheirportal.
37:01
Well,I'mI'mcurious,Tyler,arethereanyquestionsthatIhaven'taskedyouthatthatyou'dbeinterestedtotouchontoday?
37:10
No,IIdon'tIdon'tthinkso.
37:12
IthinkumIuhreallyenjoyedtheconversation.
37:15
Itwasalwaysgoodtoseeyou,Doug.
37:17
Anduhagain,alwayslovebeinghere.
37:20
Soappreciatetheinvitation.
37:23
AndIjustwanttosaythankyouagainforuhIIfeellikeIgotuhanearlyphonecallwheniPacketValuewascomingaround,andI'mreallyappreciativeofthat.
37:34
Andit'sbeen,youknow,again,IjustwanttoIwanttogivepropstoyouandtheteamforcomingupwithsomethingreallyinnovative.
37:41
Anduhandalsoagain,youknow,I'veseenalotofvendorscomingtogooverI'vebeeninthebusiness16years,but10yearswhereIamnow,andandthose10yearsI'vebeenblessedtobeveryinvolvedwiththetheday-to-dayuhprocessesanddecisionmakingandandtechnologythatweuse.
37:58
AndanduhIthinktheremightbeonlytwovendorpartnershipsthatwehavethathaven'tchangedinthe10yearsthatI'vebeenthere,andiPacket'soneofthem.
38:06
AndIsaythatjustbecauseIgetalotofquestionsfromdealersaroundthecountryaboutwhattechnologydoyouuseandwhyandwhereyouknow,everyone'sthebigquestionthesedaysishowcanpeopleintegratetheirtechstacksuhandandgetthemasefficientaspossible,andeveryone,youknow,nobodywantstooverspend,buttheyalsodon'twanttomissoutontechthat'sworthhaving.
38:30
AndandsoIjustIfeellikeit'smydutytotoreporttothepeoplethatcareenoughtowatchmyvideosandlistentomypodcast,thathey,thisisoneofthepartnershipsthatwe'vehadthat'sneverchangedandforgoodreason.
38:41
Sokudostoyouandtheteamforaproductthataddsatremendousamountofvaluetoanybodywho'ssellingusedcarsandnewcarsaswell,butusedcarsspecifically.
38:51
Well,Doug,Iappreciatethefeedback.
38:53
Andyouknow,Idowanttomentiontheonethingthatwetakealotofpridein,justasyoutakealotofprideinatyourdealership,ishowyoutakecareofpeopleafterthesalehappened.
39:03
That'swhat,youknow,yes,it'sgreattoit'sgreattoaddanewclient,it'sgreattoaddanewdealership,uhpartofourpartners,butit'sawholenotherthingonhowweservicethem.
39:13
Andourteamisumit'sitifyoucouldjustseeinternallyuhtheprocessesandthepeoplethatwehaveinplacetakecareofourdealers,it'sit'sreallyamazing.
39:25
Ouraveragetickettimeislike,Imean,itittheyaretheyhavethisdowntoanart.
39:32
Umandthey'rethey'rehandingalotoftickets,alotofdealerrequests,andandtheygetthemdoneefficiently,quickly,andright.
39:39
Andthatgoesalongwaywithourdealerpartners.
39:41
So,yes,wehaveagreatproductthatreallyaddstransparency,itdoesalotforourdealershipsandinmanydifferentways,butontheothersideofthings,howweservicethosedealersisisatthesameimportance.
39:54
AndIthinkthat'swherewe'rereallywhereweheadedoutofthepark.
39:58
No,that'sthat'swonderful.
39:59
AndIthinkwhatI'dliketowhatI'dliketoendthisonisitisimportantformetosaythisisthatasmuchvalueasthis,astheiPacketproductsaddfordealershipsandmakeourliveseasier,um,thisreallyisultimatelyaconsumer-focusedproductinthesensethatwhatyoualldobenefitsconsumersgreatlybygivingthemaccesstoalltheinformation,right?
40:26
AndsoIthinkthatadealerthatisusingiPacketisafriendlydealertoacarshopper,right?
40:34
Becauseyouknowyou'regonnagetallofthisinformation.
40:38
AndIthinkithelpstomakepeoplefeelmorecomfortableandfeelmoreinformedaboutausedcarpurchase,whichislook,thesecars,carsareexpensive,it'salotofmoney,right?
40:48
Soyouneedtoknowwhat'sthecarfaxlooklike,whatkindofserviceworkwasdone,what'sthehistoryofit,whatoptionsdoesithave,right?
40:57
SoIjustwanttopointthatoutthatthis,yes,wecantalkaboutallthebenefitstodealers,butalsocarshoppersneedtobeawarethatlook,thisisaveryifyou'rereceivinganiPacket,thatisagoodthing.
41:12
So,Tyler,thankyousomuchforbeingheretoday.
41:15
Ireallydoappreciateyourtime.
41:17
Anduh,youknow,I'msureI'lltalktoyouagainsoon,butit'sbeenarealpleasurehavingyoutoday.
41:21
Hey,lookforwardtoit,Doug.