There has been a lot of talk about the changes in AutoTrader’s pricing, so why don’t we get this beast out in the open for better or worse?
What do you think of AutoTrader.com’s price hikes?
Posted by Alex Snyder on behalf of a few dealers.
I just started working for a website that does something similar, it's called dealergarden.com, it's a little different in that we take dealers local newspaper ads or whatever ad they want to place on our site and those ads are up for one week and change every Friday. We provide free leads that don't go into a pool, they go directly to the dealer. as far as our advertising, we run ads in all the local newspapers, tv commercials and have extensive internet advertising through banner ads and such. I was curious what you guys think, because we're running into a plateau and wanted to know if there was anything else we could do to get the ball rolling a little quicker. OH and it's only $100 a week no matter how many vehicles were sold. We got the idea from how expensive it is to run the full page ads that a lot of dealers do, and wanted to make it cheaper so that the smaller dealers could afford it as well and they all can expand the reach of their current ads they place in newspapers, direct mailers and such. All of the dealer garden employees were in car sales and to run a full page ad here it's roughly $3500 per full page ad and we had one dealer tell us that in Buffalo to run a full page ad for one day was something ridiculous, he said it was bout $10,000! INSANE! What do you think? if you wanted to check out our commercials we have running right now, go to YouTube and do a search for dealer garden, our channel will come up.
According to our research, dealers are sick to death by increased charges levied against them to advertise via autotrader! Based on the info, we built our own FREE to post version at http://uk-autotrade.co.uk Granted it's not 'autotrader' but it lists on the first page of Google and 'does what it says on the tin'. It's a dealer website - it's new and it needs to be used!
George
Jeff, is there a reason for such a big variation in price? I have come across companies like caroodle.com and they charge $300 per month for unlimited cars listing. What does auto traders premium listing do for a dealer? Are there companies that provide the dealers a cost per sale (from a lead) option?
Thanks for your feedback!
Sonal,
Why pay caroodle.com a nickel when they have ZERO traffic?
Why pay caroodle.com a penny when CraigsList is Free?
Why not pay http://theygottago.com/ $10 for... nothing?
(bracing myself for caroodle.com defense)
Hi, I am writing a research article on auto dealers marketing trends and would love to get some feedback on the expert writers on this board!
I am looking for subscription fee info on the top 5 auto sales websites like autotrader.com, cars.com etc.
From reading the discussions above, I understand that these companies charge $1000-$3000 per month. Is that correct? with autotrader on the higher end of the spectrum.
Hi Guys,
The Motoring blog is up and running well with fantasic articles on motoring.
Also, The site is up for Posting your Adverts free of cost, let us know if you need more information on any thing. Dealers can upload their listing. we have got more than 230 dealers already signed up and looking for more in this week.
Thanks for your support.
regards
TheMotoring.com Team
Joe this is for you...
Well I won't back down, no I won't back down
You could stand me up at the gates of hell
But I won't back down
Gonna stand my ground, won't be turned around
And I'll keep this world from draggin' me down
Gonna stand my ground and I won't back down
Hey baby, there ain't no easy way out
Hey I will stand my ground
And I won't back down
Well I know what's right, I got just one life
In a world that keeps on pushin' me around
But I'll stand my ground and I won't back down
Hey baby there ain't no easy way out
Hey I will stand my ground
And I won't back down
No, I won't back down
(-:
Finally the portal is up and running. we are planning for the publication as well in few weeks. have a look on TheMotoring.com and let us know what you think.
thanks a ton for your support.
hahahahaa Entrepreneur, you are so 1998 (read: noob). Grab 10 bucks, go to godaddy and get to work. Stop by in 2021 and tell us how your doing. You've never built a web site, you've never created a business, you've never built a web site to produce a profit.
Your web site will be a leaf on tree... in the Amazon forest. Do you see how the odds are stacked up against you? No, of course you don't because you've never failed... because you've never tried.
Thanks all for opinions/feedback.
I don’t think you need 100 millions to start such a business. It’s about the web site content and what it has to offer to consumers, look, feel and friendliness. I do agree that you need inventory. But you at least have to start from somewhere. Inventory building is going to take some time but if end goal is to provide win-win situation for the buyers and the sellers then business model has full potential to be successful. Buyers find the services/goods they want and service providers get leads for price they want then that is the only thing matters.
Autotrader is way too pricey. and then when you call to get pricing they don't tell you until they get a bunch of your personal information. One website I came accross was Caroodle.com. Only a one time fee of $10 and your car will stay on there until it sells and you can add as many pictures as you want! such a deal. Sold my car in 2 weeks!
Joe, was that a little sarcasm? I remember sitting in a conference room at the Crowne Plaza in Atlanta on my very first day at AutoTrader.com. It was a little over 10 years ago and Chip Perry, the CEO, gave us his Investor Road Show speech. One of the things I still remember is Chip discussing the incredibly high barriers to entry in this segment. Well, at least to do it with any level of success.
In order to enter this field and attract any viewers, you need inventory. Of course it's hard to get inventory when no one is visiting your site. A classic catch-22. ATC started with every car sold at a Manheim Auction, every car in an ADP system and every car in any Trader Publishing magazine.
Anybody that can combine this size inventory - just to start - with a few hundred million in cash to burn while they get established might be able to compete.
WOW! You're building an Auto Portal? WOW. What an amazing business plan you have! WOW.
It never ceases to amaze me when a business has "low barriers to entry" how noobs like this don't do any homework and totally underestimate the business skills needed to succeed.
Team,
I need an opinion here.
With right pricing for dealers and with brand new outstanding and amazing Auto portal like ATC, cars.com etc, How hard is it to work with these dealers which are already using ATC, Cars.com and other big portals? Will they make a switch or there is no room left for new Auto Portal anymore? It seems like ATC and cars.com are everywhere, monopolizing where they go. I am also not sure how they expanded so quickly. Really appreciate your feedback.
Another usefull thing on site is :
You can have your own link on the site, eg: your username is : Kerylen , then your mini site name is, http://TheMotoring.com/Kerylen
where you can ask people to see your inventory without, without managing your site. All Inventory Items will be searched on the main site and your mini site aswell :)
Just drop an email on info@themotoring.com
for more information :)
Most charge @ 1k per month, cars.com,Bargainnews.com and other company's. Autotrader charges the most! They do have a package for 1k which will get you customers. They also have prefered packages for 2500 per month. The simple fact of Autotrader is they will charge you as much as you will pay! Be careful with your negotiating. I use deskmanager software, it ships info to webmanager and that puts all of your inventory on the net in one shot. They are very good, low priced and have a great system. Look into it. Worth every penny,they will also build you your own website. Good luck.
Dave
How much a dealer should really be paying for listing on ATC or any other similar portal?
Can I get realistic and fair pricing model per month based on number of listing that a dealer is allowed to upload to create a win-win situation? and how do you guys upload your inventory to these portal? is it automated of a manual entry?
Interesting news about auto trader, now I know. But for the last two years almost we were paying $3000 a month, but yet we were right on top of many other adds from dealers. I finally decided that if they were going to really want a certain vehicle they would just scroll down and look for my inventory. We got the price cut to $1700 without all them other features. within the same month I was just going to quit on them and I said I needed to the price to be closer to $1000 per month. They rep said that she didn't want to lose our business so she would just do it right now and keep us with the same package.Not a bad deal. Whats crazy is all this time where it say's click to view website, it was not our real website, it was an ugle templete built by autotrader and when I finally got that corrected I finally started getting 3 times the leads then ever before. Now I just have to wonder if 3 to 5 car deals a month might really be worth even the $1000 dollars I am paying, yea maybe so, at least I'm paying $3000 no longer.. Have a good day..
Wow,
I just read this entire thing... I have had a hard time figuring out the value of AT since I started here. I like my rep. but most of the time when they pitch new material I have no clue as to what benefit it could really have... I think we pay too much for the amount of leads generated and the credit center is junk... I just got the yearly review for AT in the mail.. not sure what I will say this year?
Hammer your rep--reduce your costs yourself....you're all paying too much for this "product" that hit it's peak about 2.5 years ago. The "Partnership" dealers are stealing your leads and paying thru the nose for it. If you all just paid the minimum...keeping the playing field level...you would win/lose on the merits of your product offered. Get together at your dealer meetings and talk...collusion is not an evil term here. YOU set the prices based on the value you percieve from the ATC offering. This thing used to be a bargain in the old days. It's all profit for ATC at this point...they've added NO VALUE to the product in several years---yet the price keeps moving north.
I feel your pain laid off. I was on June 30th from ATP,no luck at all still and my city was always in the top 10. I guess all that good talent will start flipping burgers.
I just got laid off from ATC for no good reason. Anyways, I have 7 dealers in an A market that are paying $399 a piece for the feature plus program. This included 9 pics, thumbnail and all the goodies. So, if you are paying more than that call your AC and tell him you want to pay $399 like other dealers. Also, I have 3 dealers paying between $1,200 and $1,800 for a partnership with 10 monthly spotlights. Some of these dealers are renewals that we needed to charge less money to keep them but the majority are new business. The bottom line is, ATC will charge you as much as you are willing to pay, it's like a Vegas BJ! cheers!
Dave L,
How many cars do you sell/month? If your only selling 10/month than your not seeing ROI from ATC. However, if you're selling 30/month this equates to 6 from ATC. At $1500/car it appears that you are getting 3 times your money in return. You can look at this 2 ways...How much does it cost or what is my return? I'm sure you are but make sure you are accurately tracking your floor traffic.
I use Autotrader as a dealer. They charge me $2800 per month for a 60 car inventory for the premium package. Cars.com $950. 40%sales from CARS.com and only 20% from AT. They will not lower the price so after 4 years I downgraded. Do any other dealers have good tested ideas for better lead generation? Any good, any good sites or publictions for independent pre-owned dealers? Thanks, dave
Very sadly, Autotrader became drunk on their own "brilliance", and on the too-frequent bar visits after work; where back-slapping, high-fiving and self-congratulatory excess were the norm. The solutions and ideas of those who were not in the narcissistic inner-circle of the anointed were dismissed; although those solutions and ideas were truly creative, intelligent, practical and easy-to-implement. It's all about whether or not your knee-pads are well-worn... if you get my drift.
I never understood why I had so many damn sales reps for AutoTrader.
We are paying more for Cars.com than we are for AT, primarily bc we are not Premium members and have not signed up for the EMP program they are hammering us for.
I did notice that the "leads leads leads" argument quietly converted to "exposure exposure exposure".
But here's the thing... Cars.com and AT are good lead generators for prospects (except for the past two months we have been on with them.. its been dead). Nowadays, both sites are bombarded with competitive dealer banner ads, on the front page, search results, and even on your personal vehicle info page! How will this benefit the used car dealerships who are on the Featured plans? Again, we are being pressured into the Premium/EMP program, but I feel like I should back out of it.
This is a great read for people who are seeking answers on C.com/AT measurements and ROI lately.
Dale Pollak is looking for AutoTader.com traffic stats from dealers all over the USA for a facinating project.
ATC hasn't had any price increases in over a year. They have also announced no price increases for another year! However, there are new solutions that can dealers can take advantage of.
The Auto Trader price hikes are a concern. Greed is not a favored trait, sadly it's this type of greed that gives the industry a bad name.
ATC is probably decent at inventory aggregation and benefits independent and individual sellers more than branded dealerships, and provide terrible returns to dealer groups compared to SEO efforts on individual inventory records. How much more for my logo? Can I be above the fold? what if they highlight my ad? Give me a break, I'd rather use windshield paint!
Re: Skip Dillard.
You're weak at negotiating, a wimp and probably got your head chopped off by a good salesman at some point. Get over it. Go back to your cube and dream of a day of "civilized" car buying process. You’re too weak to have it any other way!
If the CarMax model works than:
1- They wouldn't be losing money
2- Didn't have to reduce the inflated price of their cars
3- All dealers would do business the same way as them.
But this is not the case; CarMax relies on people afraid of confrontation, hires pencil pushers not salesmen, offer mediocre prices and shaky warranties. The end game in the car business remains the same, buy for A and sell for B, everything else is just BS.
As far as the ATC reps are concerned, they need to get used to making less than 100K per year, their female reps need to get off the boob jobs and the Louis Vuitton Bags, corporate needs to stop spending millions on useless training and meetings and trainers need to stop getting trainees high on the ATC kool aid.
ATC’s profits have flat lined, they are at a plateau, changing the website’s fonts and colors won’t cut it anymore.
God forbid craigslist Autos get their shit together and make their auto search a little better, ATC will be history.
If the "Former ATC SalesRep" offended you...so be it. Your type should be used to it. YOU offend every INTELLIGENT person that walks into your showroom. 10 yrs from now you will all be playing the "Carmax" game with all car sales--new and used. No more sending the sheep "TO THE BOX". Much more civilized process--you will still send your kids to Ivy League schools if you can still buy them in. Oh...but by then 1 in 4 of you will be a used car lot. As another "FORMER" ATC sales rep--price increases are what YOU deserve. Crying back in the day when each sale "Cost" you about $125 per copy--burn in hell. Liars...are your lips still moving?
Yeah the Auto Trader is a bunch of greedy bastar**. Mhy friend who owns a dealership contacted them to advertise before my website came up and they would not leave him alone for advertising on the magazine. He finally hung up cause they would not stop.
Auto Trader sucks.
Last year we did a test with a local website and organic SEO only. We drove more traffic to the website than AutoTrader did and at $2600 per month. The funny thing was the AutoTrader rep tried to take credit for the traffic, but we had our stats to prove otherwise.
I heard the AutoTrader is in trouble right now, buying out their competition. I heard on the local radio station in Edmonton here that a new site is evolving and i've been looking at it's progress and it is growing each day. www.canadasautos.ca is the website.
Bye Bye Auto Trader…
I used to work for the company, and was very shocked (well, sort of) from recent events.
So I found some information online, have been in contact with a lot of old co-workers, one of whom made it to the national cut, and will transition to AutoTrader.com.
As you’ll see in this article in the first link, they will be closing ALL AutoMart and AutoExtra publications in all markets, and shifting to strictly online. While the article STATES that they will be keeping all Auto Trader and Truck Trader Magazines that are currently running, still running, one of the survivors indicated on yesterday’s conference call, with Ian MacDonald, the Vice President of Sales Ops, in not so direct terms, that the Auto and Truck Trader titles will be eventually out too—that they are shifting them to strictly private party ads, but because that will shrink the books dramatically, and lack substantial content, it will give them their out to do away with them altogether. The only reason they are leaving them for now, is due to distribution/rack agreements with Dominion Enterprises/Landmark Media Enterprises. The second link indicates a pending lawsuit between the two companies, due to this whole mess.
The rep also said that Ian indicated that all reps coming over from AutoTrader/AutoMart will all be HEAVILY bonused on whatever business they can bring from where they were, onto the AutoTrader.com side.
Furthermore, according to the grapevine, the apparent reason for the final doing-away with the print components, is due to the fact that in recent months, when AutoTrader.com/Cox Auto Trader was put up for sale and then taken off, was because they were contacted contacted by big companies like Yahoo, Google, as well as some other large companies, with POSSIBLE interest, but no one was interested in the print division. By doing away with that division now, it will make them a better product overall to sell to either company, or to any other high bidder.
There’s also speculation that they will group together any and all print debts under the Cox Auto Trader/Auto Mart division (which of course includes AutoMart.com and AutoExtra.com), separate AutoTrader.com out into its own completely separate entity more-so than it is now, and file bankruptcy, leaving only AutoTrader.com remaining, and leaving an entity with little-to-no debt—prime to put to market.
This in itself would obviously mean bye-bye AutoMart.com and AutoExtra.com(which was already known), and would make sense, as with the cancellation of their print products, their databases would shrink IMMENSELY, with no more basic feeds from print. And who would sell it? The print reps who sold for them before are gone by January 23rd. And the reps going to AutoTrader.com (only 140 or so out of like 1400 sales reps), are being bonused to take business AWAY from the other units, AutoMart/AutoTrader/AutoExtra.
For example, the majority of Auto Mart listings in my area come from the book, as their online penetration is MUCH weaker than their print penetration. The listings now in our area will be a joke…
The links below:
http://hamptonroads.com/2009/01/cox-auto-trader-cl...
http://hamptonroads.com/2009/01/landmark-sues-over...
For dealers who are getting tired of the on-going Trader Publishing saga (separating Auto’s and Commercial Trucks), the Cox Auto Trader saga (Auto Trader versus AutoMart versus AutoTrader.com), and the continued, unreasonable price increases, my advice is simple:
Look to your LOCAL forms of classified advertising…they are market-based, they have their own brands and reputations, hopefully have been around for a while, and in turn, have business models that will keep them strong and in play for a long time to come, without succumbing to corporate greed.
Good luck to all! (Dealers and Auto Trader and Auto Mart victims.)
Wow, this is a great fourm and suggested reading for all involved. I have been in print and online media for the automotive industry for more years than I care to express. Your comments are all correct although, a few of the reps reporting their experiances with AT and ATC sound a bit more like sour grapes than appropriate. Senior management at most companies can be at times misunderstood but yes, they are concerned with shareholder value, afterall that is their main job description.
Dealers have a difficult task in driving new sales in todays economy versus any other time in thier history. Additionally, their marketing dollars are stretched to the limits. Today however, the dealer is aforded many more choices for advertising than ever before. The 800 pound gorilla i.e. Newspapers of the past have given way to Radio, than Television, targeted print, i.e Auto Trader the internt and of course ATC.
One post suggested investment in their own web page, smart! it's easier to control content and manage inventory and yes, it requires some attention by a dedicated staff member. Invest the time! ATC is also a viable and valuable tool assuming you understand how to use it properly. My pappy always said, "don't keep all of your eggs in one basket" well, he did'nt say it that way but I got the point. Set a marketing budget and stick with it. Use multiple channels of marketing and run reasonable and knowing ROI's on every source. Even sources with a lower ROI are viable to a point. In classic fasion, GM's and Sales Managers skip the homework necessary to make these decisions are more drawn to the sales pitch by a good ad rep. I say this with the upmost respect for those reading these posts, I would classify you as the exception to this generalization.
In time however, history always repeats itself and the 800 pound gorilla of today will be replaced by something more affordable and with better results tomorrow. Who knows, it maybe here today.... Keep looking!
I wish all of you, current and past ATC/ATP reps and of course, the dealers who depend on marketing solutions not classified advertising, the best of luck in 2009
I can't wait to see how many millions they spend on their annual Las Vegas sales conference. In Jan 2008 they went all out, I think the bill was 1.7 million. I think the AIG party planning committee has moved over to ATC!!!
A set of ear plugs, a tinfoil hat and rose colored glasses are given to every management person at Autotrader.com.
Here is a tip: private sellers get a better deal than the dealers do. ;)
You can read this article at
I just found this link from WARD, Cox is offer Autotrader.com for sale????
AT claim that their rev. hit 650M, and up 23% from last year. Why Cox want to dump it???
GREAT TOPIC... As a former employee of Landmark which once owned Dominion Enterprises, which once owned 1/2 of AutoTrader.com and which once owned my former company Trader Publishing. As a Regional Sales Manager for AutoExtra.com from 2004-2005 in its 1st year launch I learned a lot about rate increases and bottom dollar budgets. What sold web advertising back then was market/web trends and demographics. Usually from a company who no one ever heard of and data that was atleast 1-2 years old. Our knowledge of online advertising has dramatically increased since then.
Now I sit on the dealer side where its my budget to control our advertising. I have realized that the reps from AT.com have become savy to our co-op funds and even started a department to adhear to its regulations.
As I sit here scratching my head about AT.com and the Cars.com and the AutoExtra.com's and the Automart.coms and all of these 3rd party websites. I find 1 thing in common, (SEARCH ENGINES). So before stroking that signature on that new fancy price increase they are trying to sell you. Instead invest that money in your own SEO program that directly impacts YOUR website not theirs. We are paying AT.com thousands of dollars a month so that they can build their online presence.
Another fact with Trader is that the AT Publishing reps didnt want to sell the new AutoTrader.com back when it first launched, it was taking away from their print business and risking relationships. So AT.com decided to separate on their own and ever since has been doing its best to move Trader Publishing Print out of the dealerships. Though they will never acknowledge my opinion here I once was a underpaid print and online rep. I saw it happen. They dont care about the dealerships ROI they just want to push the envelope year over year, but most of the problems is on us as a dealer because we get sold on all of these little ad-ons that the reps sell. Just focus on the PRIMARY reason you are listing your inventory online and realize that shoppers / customers are educating themselves on how to get around the gliter the websites put out and get right down to the product.
I forget to post above that the pricing can be good if you can get the blitz pricing. I was able to lock in 3 years of premium listings with 50 spotlights for $2800/month. I thought it was a good price at the time and I have sold 6 vehicles this month of Autotrader as compared to six total leads the month before.
I think a lot of the autotrader value comes in not what the price is, but rather how many other dealerships in your area are using them and how effectively. Examples would be if you are the only MOPAR dealership using trader in 50 miles then it really pays off. However if there are 15 dealerships in 50 using it then you will probably not get good value out of the product. Also make sure that you are putting good descriptions and pictures up. I have found that the more up front and more descriptive you are the better the number and number of quality responses.-Steven Isakson
Trouble in Toyland???? They just axed a large capital building project, guess Cox doesn't want to float the debt in this economy, could impact their $13 billion in annualized revenues.
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