Wholesale auctions exist to sell cars, so I'm here today to purpose that we, ADESA Colorado Springs, start selling Honda Remarketing Fleet/Lease vehicles at our auction. At the same time, my intent is to show Honda Remarketing that we are without a doubt, ready to market their inventory and get them top dollar for their fleet vehicles. ADESA Colorado Springs would love the opportunity to sell Honda Remarketing Fleet/Lease vehicles to prove that we can grow together and be successful, resulting in a strong import buyer base, increased weekly volume and high retention rates. In doing so, we will not only increase our overall bottom line, but will also increase net earnings for our detail shop, body shop and transportation.
To make this a profitable endeavor, I’ve taken the liberty of scouting out the franchise demographics of Honda dealerships in our area. In a 100 mile radius, there’s Planta Honda, Ralph Schomp Honda, Burt Kuni Honda, Mile High Honda, Go Honda and Frontier Honda. In a 300 mile radius, there’s Front Range Honda, Markley Motors and Honda of Greeley. Our factory sales team has already contacted each of the above mentioned dealerships and all of them have committed to attending our next Honda Remarketing factory sale. I’ve sat down with our controller and we’ve gone over the potential net earnings with adding Honda Remarketing to our factory sale. Honda has committed to running 350 cars, once a month. Our sell fee would be set at $75 per car sold, which is a possible net income amount of $26,250. This is a special set sale fee for Honda Remarketing! Our detail fee would be $95 per car sold, which would be a
guaranteed profit of $33,250 for the month. This detail fee is also a set fee for Honda Remarketing. We’d also have a buyer fee of $104 per car sold, for other potential net earnings of $36,400. Let’s not forget we’d have the opportunity to send these vehicles through our in-house body shop, which depending on the body condition of the vehicles, can increase our net profit by another $11,200. We, at ADESA Colorado Springs, pride ourselves in offering the best customer service shops in the Denver metro area. Our body shop employees have 12+ years of experience and they pride themselves in inspecting and repairing cars to the highest standards. Our customers always come first, which means we only sell cars of the highest quality. You’ll also be happy to also know, that our sales team has already worked out the transportation rates from New Jersey (location of Honda Remarketing) to Colorado. We are looking at a $50 - $75 profit on each shipped vehicle. As you can see by the numbers I mentioned above, bringing on Honda Marketing will allow us many opportunities for growth.
Audience/Channels of Communication
The marketing and advertising methods for Honda Remarketing are the most crucial and need to be effective. I recommend using Simulcast for future sales. This way the event can be a live broadcast for those Honda dealers that cannot make it to the auction on sale day. For those Honda dealers that use Simulcast to buy vehicles, we’ll offer them an incentive of a $25 gift card and will be eligible for all in lane promotions. We can also give the first time buyer, one “free” buy fee. Why not invest your marketing dollars in customers who are the most likely to generate a return! We
want Honda Remarketing to see that we are dedicated to creating a Simulcast experience that exceeds their customers’ expectations. We can also utilize our 24/7 online auction at ove.com and CyberAuctions. This way dealers who are unable to attend, can view the vehicles at their leisure and also purchase vehicles while the sale is live. The benefit of this online auction is that potentially we’ll reach more people outside our normal participation area and for the buyer; they’ll have first dibs on the inventory. We’d also offer $50 in transportation assistance on the first 5...
References: (none needed)
Please join StudyMode to read the full document