How vendors sell dealers

Pitching a service or pilot system to a dealer can be an arduous process, especially when faced with a growing laundry list of competitors that cater to just about every crevice of a dealership's operations.

And it doesn't help that skepticism of vendors has scaled to new heights, making it tougher than ever to get in front of dealers, according to Matt Weinberg, senior vice president of consumer experience for Drive Motors.

"Dealers are really mistrustful of vendors, more than they have ever been, because they've been sold a lot of stuff that hasn't necessarily worked out for them," Weinberg said.

So, which strategies work, and which miss the mark?

As a vendor, one of the most effective ways to meet dealers is through a dealer referral, Auto/Mate CEO Mike Esposito told Automotive News.

"I could come in as a salesperson and make all these claims about my product or what have you, but dealers really value the opinion of other dealers, and rightfully so," Esposito said.

A dealer's positive opinion can go a long way, Esposito said, especially in avenues such as 20 groups, where dealers can meet and exchange opinions about a particular product.

Some dealers also will hire vendor consultants to give them information about the different opportunities, he said.

The brand of your company and your product "is on the forefront of getting a dealer to be interested in you," said Esposito.

"When you have a happy dealer, they'll tell other dealers," he said. "You get business."

To attract dealers, Weinberg recommends adding value to the dealership immediately. This can mean performing a free website assessment or completing a free analysis of the dealership's digital marketing, he said.

If vendors approach dealers with an understanding and a clear solution to a problem the dealer is facing, they will get dealers' attention, Mo Zahabi, senior director of product consulting for Dealertrack F&I and VinSolutions, told Automotive News in an email.

"We discuss how to address" the problems, Zahabi said. "And then we help the dealer understand potential ways to improve their F&I process and ultimately generate more profit while improving customer satisfaction for the dealership."

In addition, being part of a prominent auto retail organization, such as Cox Automotive, gives Dealertrack deep data access and insights, he said.

"We also have the opportunity to show how our solutions are interoperable and can exponentially grow dealer business when they work together," Zahabi said.

When a dealer senses that a vendor is trying too hard, the walls go up, which is why Weinberg urges his team to educate the dealer and shy away from sounding like a salesperson.

If you can educate and become an expert, the dealer will wind up asking more questions about other corners of his or her business, he said.

"If I'm going in person, I'll actually tell them I'll bring a tomato with me, a fake tomato — it's like a plush toy," Weinberg said, "and if at any point ... you feel like I'm wasting your time — you throw the tomato at me."

That way, Weinberg said, he makes it clear that he wants to provide value and improve the dealer's business.

Since dealerships are competitive by nature, vendors have to bring dealers something unique and personalized, said Zahabi.

"They don't want the same exact thing the store down the street has," Zahabi said.

"Showing how our solutions are flexible to fit the needs of very different users and yet are able to scale for growth, efficiency and profitability is a big plus."