My business is failing... - Page 2 - PeachParts Mercedes-Benz Forum

Skippy · #16 08-05-2014, 07:11 AM

I think craigslist and fleabay have done a lot to connect sellers with buyers. This used to be the function of a used car dealer. I think that whole part of the auto industry will be changing, with the buy-here pay-here types still having a function to service those who can't come up with cash in hand to buy a car. It may be time to start looking for a new career.

JB3 · #17 08-05-2014, 07:38 AM

Quote:

Originally Posted by TylerH860

They sell for the equivalent of NADA or KBB retail around here to the buy here pay heres... Can't make a dime off that.

dont sweat the closing of your doors. I have been part of two failed start up business ventures, first one as a principle employeee, second with partners. Every one is a great learning experience, and many people who own small business have that kind of history behind them.

I know a guy who is the national rep for some of the products we were selling in the second business who is a multi millionaire, but tried 5 times before he struck it rich.

Took me a while to come to terms with the second business as I was a managing partner and it was based on my two other partners sort of giving up on the idea but not really wanting to talk about it before I forced the issue.

Always look on the bright side, you can close your doors as you planned and have no regrets. At least your business is closing without an eruption of lawsuits. The first startup I was part of, resulted in I think 10 or 12 lawsuits

SwampYankee · #18 08-05-2014, 09:30 AM

Sorry to hear that, Tyler. At least it seems you've been preparing for it & I wish you the best of luck in your future endeavors!

Like you said, unless you're a chain or a BHPH lot, there's not a lot room left to play in.

t walgamuth · #19 08-05-2014, 09:46 AM

Sorry to hear it. There is life after losing a business though. Embrace change and make the best of it. I know you will. Best of luck.

JB3 · #20 08-05-2014, 09:50 AM

Quote:

Originally Posted by SwampYankee

Sorry to hear that, Tyler. At least it seems you've been preparing for it & I wish you the best of luck in your future endeavors!

Like you said, unless you're a chain or a BHPH lot, there's not a lot room left to play in.

curious for tyler as to why not change to a BHPH lot?
What are the disadvantages to this?

the best business advice I ever got was never nail yourself down to one specific thing if its not profitable, and to be willing to change the nature of your business as the conditions around it change.

tbomachines · #21 08-05-2014, 10:01 AM

Quote:

Originally Posted by JB3

curious for tyler as to why not change to a BHPH lot?
What are the disadvantages to this?

the best business advice I ever got was never nail yourself down to one specific thing if its not profitable, and to be willing to change the nature of your business as the conditions around it change.

I imagine that is a pretty miserable business to be in, chasing after deadbeats etc

SwampYankee · #22 08-05-2014, 10:07 AM

Quote:

Originally Posted by JB3

curious for tyler as to why not change to a BHPH lot?
What are the disadvantages to this?

the best business advice I ever got was never nail yourself down to one specific thing if its not profitable, and to be willing to change the nature of your business as the conditions around it change.

I'd imagine that brings along a whole 'nother level of headaches with the clientele, record keeping as the lien holder, the repo process and performing the function, etc.

If you're (generic) willing to deal with all of those factors and more, there's plenty of money to be made. I'm not sure I could. Tyler doesn't strike me as the type who would want to deal with all of that either, especially if he's got something else lined up.

Simpler=Better · #23 08-05-2014, 10:12 AM

Quote:

Originally Posted by TylerH860

Also the franchises are keeping all of their trade ins. They will try and retail a $500 hooptie, reputation be damned.

When the hooptie dies, and the customer comes back complaining, the sales guy has the perfect shot: "Well, didn't I tell you that the real value comes with a brand new ____" "Come on over here and let's get you in a tin can"

Hatterasguy · #24 08-05-2014, 11:22 AM

Quote:

Originally Posted by TylerH860

I would love to do that, but Wichita is the WRONG place.

Move to LA, Miami, or NYC.

The most expensive car she ever sold was like $5m!

Skid Row Joe · #25 08-05-2014, 01:18 PM

Quote:

Originally Posted by iwrock

I've noticed the same thing out here in Sacramento - and add that bigger dealerships (franchised Ford, Chevy, Dodge, etc) dealers are listing cars for the same price as private parts/pot lots.

The used 06 E320 CDI I bought from a Mercedes-Benz dealer took a very low number as contrasted with what they had it listed for. It came with the Carfax furnished too.

barry12345 · #26 08-05-2014, 01:24 PM

What is the car rental business like in your area? Decent franchises still available? Also could give you a source of newer vehicles to peddle as well if you were involved. Combined with say a u haul type franchise.

There is little doubt the franchise owners pay too much for cars and seem to cycle them fairly often.

Projections where the used car business would tighten up as so many less cars where sold after 2008. Seems to have occurred. Compounded by perhaps lower margins for new car dealers overall. Supply and demand are also impacting you presently I imagine to some extent.

If you do not have a limited company presently form one and sign no personal guarantees. This can cause some difficulties initially but good lenders will still service your needs if you are ethical usually. Never any sense in taking a total bath if something or other beyond your control occurs down the road.

DieselPaul · #27 08-05-2014, 01:25 PM

Quote:

Originally Posted by lorainfurniture

I tip my hat to you. It's likely that you have an excellent reputation that you are enjoying the fruits of. Tyler does not have that. My furniture business is kind of the same. It has been in business for almost 40 years. I see so many people try to do the same thing that I do only to fail miserably at it.

One thing that always helps is to have more than one source of income, whether it be a rental, or just another facet of your business. Did you do any repairs? Car detailing? Oil change?

When I'm not busy selling washers during tax time, I'm busy doing in home service, and taking care of the rentals.

If it was easy, everyone would be doing it.

I did not attempt to downplay Tylers situation, I feel for you Tyler. However I do not like the notion that any successful businessman is a crook. Maybe that is not what you meant, but I read it that way.

My father is in the car business, and I am in a different industry, but play with cars on the side. In the car business and in manufacturing I like to think we deliver a quality product and good customer service, and we have lots of repeat customers.

I do not know any business that is "easy" to run. If you're doing something you love and enjoy it can take the sharp edges off of the rough days, but work is hard.

Delibes · #28 08-05-2014, 01:34 PM

This just appeared on my newsfeed:

Is Gannett Buying a Clunker in Cars.com? - Businessweek

It's the same as small-time jewelers/watchmakers; it's either the big chains, or online. Besides planning your life after the dealership, I would seriously encourage you to think on how you could adapt your business to the times. How can you take advantage of new mobile technology? Have you considered new, export markets? Wholesale? Fleet sales for oil/gas/mining/airlines/contractors/VIP?

Hatterasguy · #29 08-05-2014, 01:36 PM

I think what's happening is that the car business is going threw a change.

Inventory on used cars remains tight and will for some time, and as a result prices are up. This is driving a business model change to buy here pay here lots. Throw in the internet which makes private sales even simpler, and super complicated modern cars, and its a perfect storm for the small used car lot.

Unless Tyler can specialize in a niche market he is probably fighting for an ever shrinking piece of pie with lots of other people.

IMHO even new car franchises are a poor business now. Massive overhead and your competing thanks to the internet with dealers from hundreds of miles away, now throw in what Tesla is trying to do... Back in the day a local dealer could count on local business, now a lot of dealers are online and on commodity vehicles like pickups for example its child's play to get half a dozen bidding off against each other all over the tri state area.

tbomachines · #30 08-05-2014, 02:41 PM

Quote:

Originally Posted by Hatterasguy

I think what's happening is that the car business is going threw a change.

Inventory on used cars remains tight and will for some time, and as a result prices are up. This is driving a business model change to buy here pay here lots. Throw in the internet which makes private sales even simpler, and super complicated modern cars, and its a perfect storm for the small used car lot.

Unless Tyler can specialize in a niche market he is probably fighting for an ever shrinking piece of pie with lots of other people.

IMHO even new car franchises are a poor business now. Massive overhead and your competing thanks to the internet with dealers from hundreds of miles away, now throw in what Tesla is trying to do... Back in the day a local dealer could count on local business, now a lot of dealers are online and on commodity vehicles like pickups for example its child's play to get half a dozen bidding off against each other all over the tri state area.

This. I was talking to the president of a large local dealer group a couple months ago who said almost exactly the same thing and just about everyone is struggling with a traditional model. I think I would have been able to help his company ( the guy in the position I was trying to take was very print/tv/radio biased) but timing wasn't right.