There are vendors who have limited experience and literally work out of their cars, who misrepresent themselves to dealers as viable business partners. These vendors will arrive at your store to launch a product and disappear for months, provide little to no value, and no customer service. Vendors provide transactional services with no in-depth understanding of your business, no proactive solutions to help with growth, and little interest in learning more. It takes time, experience, and the building of mutual respect to be regarded as a partner.

A true partner will listen to a dealers needs and effectively implement change to increase the bottom line. It’s our job be trusted advisors and consultants that provide appropriate guidance and advice. A good partner will always work in the best interest of the business, putting the dealer first, aligning themselves to the goals and objectives.

Partners will offer a wide range of services that protect the dealers’ interests. They will understand compliance, including any new or updated compliance regulations, and offer options to keep them compliant without having to deal with extraordinary issues.

Finance managers are looking for real experience, ability to provide training, and are not eager to work with vendors who can’t even spin a deal anymore. It’s essential that if your partner is training on processes, that they can do it themselves. When you are interviewing a prospective agent, consider having them sit with your finance manager and show them their process (from a training standpoint) from start to finish. Let them show you that they can do what they say they are going to do. Until then, they don’t earn your respect or trust.

Expectations for a true partner should always include:

• Ability to provide the dealership with the right tools and technology solutions, as well as the right mix of products
• Servicing your business with monthly F&I meetings and goals overview
• Mid-month updates on progress with biweekly reviews, making themselves available to all departments
• F&I specialist fill ins as needed
• Quarterly compliance deal audit reviews

Inadequate vendors will make PVR promises but won’t impact any change at the store. A reasonable amount of time to see improvement with support from the dealer (to holding staff accountable) is 90 days. If you are not seeing that happen, you should consider finding a partner in lieu of a vendor.

It’s important to get references from other dealers the prospective vendor is working with currently. A quick phone call can tell you a lot about someone’s business practices, ability to grow wealth, communication skills and more. Consider your own operation, objectives, and goals, that may not be comparable to references you are speaking with. Ask for references in similar situations to your own.

Understanding the deal process from when a customer walks in the door to conversion of a sale is a customized process for each store. A true partner understands that automotive sales is not a cookie cutter business, but it’s also not reinventing the wheel. It’s knowing the nuances and customizations that are needed per store.

Look for an agency with experience, that is proactive rather than reactive and available with open lines of communication and transparency. Your partner agency should be able to provide you with an operational analysis. If your store is having difficulty, they strive to impact change by sitting down with sales, finance, and the general manager to understand the current process. Then they present a solution to drive efficiency and profitability.

Some agencies are not embracing real potential for their dealers. The past is not the future, and the automotive industry is constantly evolving driving towards the future. No one wants to be the last one in.

Red flags to watch out for include:

• Vendors who don’t have offices, travel from store to store from the trunk of their car
• Beware of the drop and go agency. They come in to launch a product and then you won’t see them for months. They will provide little value, less reward with products that come in and out.
• Vendors who do not offer reinsurance or products that are re-insurable.
• Stay clear of any mentions of kickbacks
• Don’t be swayed by ‘someone who knows someone’, and vet vendors thoroughly to make sure they can provide you with the business services you need
• There should not be a lack of understanding technology and technology products

It’s hard to argue with results. It comes down to one question. Are you getting the best results possible?

You can reach Brandon Bell for more information about partners and vendors at BBell@ezvds.com or on LinkedIn.