Transcript
WEBVTT
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Accelerate your dealership success.
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This is the Car Guy Simple Podcast.
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Welcome back, Joe Levine from Car Guy Simple, the podcast for anybody, retail, wholesale, or otherwise, in the vehicle segment, right?
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New vehicle sales, used, service and parts.
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If you're in the retail automobile business, you're in the right place.
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So welcome.
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And today, we're, I don't even know how to blow this up without blowing it up.
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I get the opportunity to chat with one of my oldest friends in the car business, a guy that I have a lot of respect for, somebody who really doesn't need much of an introduction, other than please say hi to John Hamlin, the president, CEO, and absolute most knowledgeable person I've ever met beyond mail and data, Hamlin Associates.
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John, thanks for being here today.
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Pleasure.
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Glad to be here.
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Thanks for having me.
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Well, it's it's our pleasure.
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You know, we don't get the opportunity to have people at your altitude come on, and and as you know, we don't monetize this.
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You came of your own free will.
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Hopefully you won't regret this.
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I'm only kidding.
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And uh and our job here today is to talk about some things that hopefully people can take back to their store or stores, group or otherwise, at any level, and plug in and make money with it.
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That's what we're here for.
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And and and the reason that this is happening, right?
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So let's dig right in, shall we?
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Let's start with your background, man.
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What so why the car business?
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Why the Hamlin Associates, why not 17 dealers?
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We've known each other over 20 years now.
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Tell us about John.
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Okay, well, John, when he was about 12 years old, right?
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Okay, lived in a trailer park in Portland, Oregon with his mother.
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And the the guy with the nicest trailer, right, and drove a nice car because they gave demos back then.
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And he had a pocket full of money, um, was a car salesman.
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And I just looked at this guy like he was God, he was so cool.
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He gave me money when I wanted to buy my mom a Mother's Day gift.
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We were very poor.
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And I from that time on, honestly, at 12 years old, I'm gonna be a car salesman.
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At 14, I started washing cars at a dirt lot on 82nd Avenue, and always would say to the owner, Sam, I want to sell cars.
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He said, What do you have to do?
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18.
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18th birthday.
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I came in with a suit, had a suit on, right?
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Didn't know how to tie a tie.
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And he's like, So what do you have to, Johnny?
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And he does this, he does this uh single Windsor, double Windsor, you know, and I said, Well, I want to sell cars because you don't want to sell cars here.
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There's a third line on 82nd Avenue.
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He picks up the phone, he calls Jesse Harris at Mike Solder Pontiac and says, I have a guy for you.
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And he went down there, they hired me, and it was in the car business.
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What kind of training did you get?
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Um, not much.
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They throw you to the woods back then.
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So they just said, Go get them, kid, and that was it?
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Right.
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So it was sink or swim.
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Yeah, and I started out with sure it was a pretty car, isn't it?
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I mean, I didn't know anything.
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How long did it take you to sell your first unit?
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Um, actually, the odd part, and I think this will ring true with a lot of people.
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I did really well my first month, really well.
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Second month, I fell flat on the city.
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Were you spending in the second month what you made in the first month, and you got into a little bit of country club?
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I'm taking it easy.
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I think they called it you got your dealer plates back then.
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I don't know what they call it today, but it's like got smart, and I was not smart.
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Did you get your tie cut on the first one?
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Now, how long ago was that?
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That was uh I was 18 years old, so good lord, that was I don't know, to do the math.
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Still cutting ties today, still doing that.
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Why do we cling to what we've done for decades?
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Why is why is that?
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It it works, it's real, it's fun, it's it it's tradition.
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Yeah, you know, I think people love tradition.
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I do.
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But tradition sometimes gets masked and confused with habits, right?
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And we we've talked about this forever, right?
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And we'll get into data and all kinds of other things because really you're not a malehouse.
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A malehouse is is we we pick zip codes, we pick a demographic, we drop, we wait for the mail.
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You're not a male house.
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And we'll get into that in a in a little bit.
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But I I think uh what when it comes to mail, what do you feel is the most the single largest failure that dealers do when they think about and execute mail in uh off the top of your head, and then we'll dig into why you look at it differently.
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What's the biggest fail?
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The biggest that's a great question because it this needs to get out that the biggest fail is treating direct mail as if it's I need a big weekend and so I'm gonna do direct mail this weekend.
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That's just so 1980s 90s.
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It totally is.
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You know, and and and so when I get a call and it's like hey, look, I need I need a big weekend.
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I call it the 911 call because they're they're in a panic.
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Yeah, yeah.
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Right?
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And they clearly we have clearly failed to explain our product because that's not who we are.
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Well, it's true.
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I mean, I'm I remember when I when I first bought my Chevy dealership and I I I borrowed everything that I could.
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I leveraged everything like everybody does when they go into business, right?
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Went through five agencies the first year I was a dealer.
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That was a paid political announcement for PMD.
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How you doing?
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Good to see you.
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It's all about well, it's all about the you as well.
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But but the point is, like, I I had people what do you want to do this weekend?
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I want uh I pay my mortgage, I gotta sell cars, I gotta, I gotta fill my service lane, I gotta do, I gotta do, I gotta do.
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And and and and you worked through all of that.
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Um if there was if there was a series of things.
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I'm asking you these questions before we dig into why what you do works, because we're we're gonna get into this award in a little bit.
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Because you didn't pay for this.
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I got one of these recently in the aim.
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Congratulations! You've been awarded the 2025 ad agency of the year, and and everything was misspelled, it was from Europe, and for 76 pounds, I could write a check and I got the award.
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But that's not this.
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So, first, let's do cause and effect, and then we're gonna dive into what Hamlin and Associates thinks, breathes, works with, and why people come back and back and back.
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And to invert this and get people to really pay attention, watch this one.
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Fixed ops over variable ops is what pays for the sales that you do.
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Would you agree with that?
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Yes.
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We're gonna get there, which is isn't that it's unheard of in the mail business.
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I was actually shocked.
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I had a client tell me that.
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Right.
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Well, well, and we're gonna and I and I'm gonna ask you to tell that story in a little bit, okay?
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Right?
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Um when we when we talk about future strategies, let's invert that.
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What do you think the past what is the difference between the past strategies, current strategies, and do you think that future strategies in your corner of the world need to be different?
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What has changed, what needs to stay the same, and then let's learn more about what Hamlin thinks I I think and associates versus John Hamlin, of course.
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I I I think the the most important thing, I mean the technology, the new technology needs to be embraced.
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It needs AI is definitely a part of that, but wait a minute, be careful, okay?
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Because I've seen it do things that that work and I've seen it do things that doesn't that are fail it that fails, and the dealers' ability to embrace that, not be afraid of it, and look at what what they should be doing and what they should not be doing.
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Well, let's talk about that then because AI, big buzzword, everybody's AI, AI, AI, AI, AI, AI, AI.
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Forget the blue pill and the matrix and all that other stuff.
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AI.
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Useful, dangerous.
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Indeed.
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Why useful?
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Useful because like I I have a mail, a mail manifest of every call that came in, right?
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And no dealer wants to click on that and listen to 150 calls, right?
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Right.
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So they can type in a buzzword, right?
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And AI will search out the go scroll through and tells us, okay, which where was appointment mentioned?
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When was this mentioned?
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And so we could cut buzzwords so they can literally listen to a hundred phone calls by script just by scrolling and see where it was good, where it was not good.
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Yeah, fair point.
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Yeah.
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So there's a good idea, a a bad idea is when you have um you're calling the low hanging fruit linging fruit, which you know, the equity mining and things like that that have happened have hurt the car business in a little bit in a way, because they keep going back to the same people, and people don't like that.
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And so what the result was was okay, salespeople are no longer calling these people because they're saying, Hey, look, this customer's cussing at me.
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And so the reason the the the answer to that was we'll just have AI call them.
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Are you kidding me?
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So hiding behind tech is something you're seeing more and more of.
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Well, how would you feel if you were a customer and I told you three or four times, stop calling me?
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And so the the decision was, oh, we just we want him gone, we'll just have AI calling.
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I would love that.
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No, I would not love that.
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That's that's just not thinking clearly if you ask me.
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Correct.
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That's where AI can be deadly.
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So so now let's just jump this across to Well, let me let me start off.
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Let's talk about Hamlin Associates.
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Are you doing business how long have you been around?
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Your company.
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1988.
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So you're new with this, rookie, sorry.
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Okay.
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So I'd love to do that to you because it always makes you smile.
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Um, so are you doing business the same way today that you were in 1988?
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Identical?
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That is such a great question.
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Let me tell you why this is a great question.
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In a way, yes.
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Okay.
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Back when I didn't have the technology, and we were all buying lists, right?
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Right.
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From DMV and such, right back in the 80s.
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Okay, here's what my competition would do.
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They would buy a list and stay five miles inside the dealership, and that way that first sell was a real big win for them, right?
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But now what do they got to do?
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Now they go further out the next thing because they just hit these people and then further.
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And by the fourth sell, it's not working.
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That was something.
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So we would buy the zero to 20, 0 to 30 mile radius, and let's say you had you were doing 10,000 piece drops.
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We would hit every third household so that we can give you consistency in the next three events, not do one really good one, one average one, and one failure, and then get fired.
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So now what we do is the same thing.
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We look at the data and some other factors, and we manage that data kind of the same way so that you're not hitting just the low-hanging fruit.
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Like dealers will say, I just want an equity file.
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Out of the last 10 deals you sold, how many of them had negative equity?
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All of them.
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So do you deliberately want me to not market to the largest group of people that are buying your vehicle?
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But you're not just a software that you hit a button, makes total sense.
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There's softwares out there that that that point dealers that they they they get a dog in the hunt to okay, here's the path, go find the game to pursue, right?
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And but it doesn't load anybody's lips.
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It doesn't tell the consumer anything, it just says, this person's inequity, call them.
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Do you go beyond that?
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Way beyond.
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I'm listening.
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Uh way beyond.
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We're all listening.
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We we look at we we look at, you know, we don't want to drive and and have peek people call their 40,000, 25,000 in equity, although those people do get bought every now and again, right?
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It does happen.
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It happens.
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Um you know, we try to range it to where it's it's in line with what we know we can we can get done.
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And then we just we say that.
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But you don't scorch the earth on a on a five-mile radius and then burn it out, do you?
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No, no, no, absolutely not.
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So what's the difference?
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Well, the difference is because I have I have either your PMA, if you're like Lexus, you can't go out of it, or I have your the radius of your dealership that we think is smart, and we have everything we do is extremely deliberate.
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Like I've shown comparisons, why do I stay zero to 40 miles at 50, whatever it is, 50 miles?
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Because I can show you reports from some of the guys that are supposed to be really great masterminds and and and the you know uh of this concept.
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And the dealer has sent me their reports because they wanted me to make your mail campaign.
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And I I run through my cleansing process, they mailed 42 different states.
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Where's the sense in that?
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Well, and we're gonna talk about bad mail in a minute versus good mail and what and the cost of that, right?
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I was referring to a a a dealer, large dealer, um, a scorched earth dealer, not naming names.
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That's not fair to do.
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Right.
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Um, and they used to have to resort to bussing people in from the next state over, literally.
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That's a true story because they had scorched their local area, right, right?
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As opposed to being able to understand who to communicate with, when to communicate with them, and how to communicate.
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Right.
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Absolutely.
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But but you don't, you're just not a male house, don't you?
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Didn't you design see here's where I get to here's where I get to embarrass John.
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This is gonna be really fun because he's like the wizard.
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He's not Nostradamus, he's not gonna tell me what the weather's gonna be.
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Why do people that get that meteorologist thing, they have a five million dollar radar can't tell the weather?
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But you can give us a direction that software that you have, you give that dashboard to dealers.
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Why do you do that?
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It's evolved from a dashboard to a system of intelligence.
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What's the difference?
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The difference is the amount of intelligence it has in what you're in regards to saying.
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Do this, do not do this, watch track everything.
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Be honest, us, be honest.
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We show I can show you every bad event I've ever had for a Klan.
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Why would you do that?
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Why would I do that?
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Because on the top of that report, it shows cost per copy, and the cost per copy is way you wouldn't fire LeBron James for having a bad game, right?
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But if I can't honestly look at that with you without fear, right, then how can I make the adjustments that are necessary for your store?
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So when so does your software and correct me if I'm wrong, all of your clients have access to that dashboard and you go, you're you and your team, you have a team of people, obviously, so you're not working out of your trunk.
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Uh you probably started that way, like we all did, but you don't do that anymore, right?
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We when you have that dashboard and you have those those those performance discussions regularly, do you do you all refer to the same dashboard, which is that dealer or dealership group's dashboard by franchise?
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Yeah, and that that dashboard or system of intelligence will tell us everything.
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Okay.
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Tell us tell us how they did different and gross profit, tells us everything we need to know.
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And it's honest because you can see when you know sometimes it's it's an execution problem.
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Sometimes we just didn't draw.
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Now, why?
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Why didn't it draw?
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How much coaching do you do to help people out of that rut?
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Whatever it takes.