view newsletter online May 15, 2024

A Word from MTIADA President, Chad Randash

Greetings from the desk of Chad Randash your Association President with lots of Help

from Jimmy Brown!


Spring has finally sprung, and I hope this letter finds you hard at work moving iron. It is with great excitement that I welcome 8 new Dealers that joined the Association in the past month. Growth is always exciting and with the growth comes new energy and

excitement that is contagious.


One question I hear often is, “What does the Association do for me?” I’m sure you have asked that question yourself and I’m glad you asked. There are so many ways the Association is working behind the scenes to improve your opportunity to be successful that we could go through it for hours. As with any endeavor there is strength in numbers and with more numbers there is more strength and clout. We are having our bi annual Legislative session beginning in January and our influence and efforts keep harmful legislation that is negative to us from going through with no resistance. We send Board Members to Helena on your behalf to lobby for laws that are beneficial and oppose laws that can hurt us and we scan the docket daily looking for items that may affect you. We are involved in your and your employees children’s education in giving scholarships to deserving students. We have donated to Project Hope in the Independent Auto Dealer’s Association’ name on your behalf and have put ourselves in front of Bank Presidents and other influential parties to explain the difference between a used car lot with no consideration for the community and our members that are dedicated to improving the Independent Dealer’s community. We also have hours upon hours of training you can access at any time and an annual convention where you can learn from industry experts. We send out monthly publications that include success tips you may want to try and legislative articles that keep you abreast of current and pending laws that will affect the car business on a national scale. There are 20 groups for retail and buy here pay here Dealers and so much more.


In addition, we have vendors that are so involved in helping us be successful that they

even pay part of your dues in the way of coupons for discounts when you do business

with them. If you pay attention your annual dues can be free!


Also, it is my pleasure to announce to you that we will be having election of our Board of Directors and since we have missed some elections because of Covid, all of the seats

are up for election at this time. We will accept names until the end of May and then the

election will be held the first week of June and close on June 7th at 6pm. We will make announcements in the following week as to the names of the next Board of Directors.


If you have any interest in serving on the Board of Directors we would love to hear from

you and put your name on the ballot. With the advent of zoom meetings it is easier than

ever to contribute and be a valuable asset to your fellow Dealers and I encourage you to

step up and see what you can do for your Association and fellow Dealers. Personally, I

get more out of giving to the Association than I ever thought I could. Our Directors are

very instrumental in making our Association successful. It is like becoming a director of

a large corporation and setting plans in motion so the corporation is successful. If everyone of the board members does their part and contributes some time and effort we

can make your association as successful for all the Dealers as any organization can be.

It is my belief that “car people” are resourceful and your Association would love your

input as a Director. Please email, text or call and offer your expertise.


Respectfully,


Chad Randash

President



PS… As a member of the Montana Independent Auto Dealers Association you are

automatically a member of the National Independent Auto Dealers Association.

Update Your 2024 Membership


MTIADA is incredibly grateful for your membership, and we are always stronger when we stand united. With its members’ support, your association can continue to advocate for all independent dealers at the state Capitol and offer the education and resources you can always rely on.

Visit our Website to Renew/Join

Constituency of One

Constituency of One

By: Shaun K. Petersen, Executive Vice President & Chief Legal Officer, Buckeye

Dealership Consulting


If you’re like me, you probably have a favorite television show or movie that you

repeatedly watch over and over and over again. Mine is The West Wing. The writing is

phenomenal. The acting is outstanding. And, you may know – I love politics.


An episode entitled – “Constituency of One” – follows Deputy Chief of Staff Josh Lyman

after he is dubbed the “101st Senator” because of his success in convincing politicos in

Washington to see things his way. Legend has it, Lyman once sent a congressman a

dead fish to help motivate him.


Lyman downplays the hubbub telling West Wing staffers they serve a constituency of

one specifically the President of the United States. One staffer immediately pushed

back and said she only serves a constituency of one – herself.


I have thought about the meaning of “constituency of one” over the course of my career.

I have worked for politicians, engaged politicians in professional and personal settings,

and may have even been considered a politician at one point in time. After decades of

meetings with individuals and entities while in government service and while

representing individuals and entities before government bodies, I have come to the

same conclusion that fictional White House staffer did. Ultimately, we are all

constituencies of one to ourselves and our businesses.


Think about the idea of your business being a constituency of one. What does that

mean to the dealership? Why is that important? What should you do to represent your

constituency of one?


Being a constituent of one means you each have a story to tell. You know your

business. You know your business’s impact on your employees, on the economy, and

on your community. You know the day-to-day challenges dealerships face. You know

how your dealership fits into the larger automobile retail industry. Who better to tell this

story – your story – than you?


I can assure you that government officials want to hear from you. They NEED to hear

from you. Think about the litany of issues your city council members, county

commissioner or congressman/congresswoman has on their plate at any given time.

When you think about the number of issues they face at any given time, their knowledge

is often a mile wide and an inch deep. They need you to provide the substance of

understanding.


Perhaps, you may be wondering if your engagement will make a difference. Let me

share a few examples of how the voice of the dealer has made a difference over the

years.


It was the dealer voice that has repeatedly pushed back against proposed legislation

that would prohibit the sale of vehicles with open recalls.


It was the dealer voice that led to a revocation of the Consumer Financial Protection

Bureau’s flawed guidance on dealer assisted financing.


It was the voice of the dealer that led Congress to revoke the CFPB’s ill-conceived, anti-

consumer arbitration rule.


It was the voice of the dealer that kept 100% deductibility of floorplan interest expenses

in the Tax Cuts and Jobs Act.


It was the voice of the dealer that helped defeat overreaching Buy Here-Pay Here

legislation in Oregon.


And more recently, it was the voice of the dealer that convinced federal, state and local

governments that automotive sales and service are essential businesses to remain

open during the pandemic.


This is far from a complete list, but these things don’t happen without you telling your

story.


How do you get started? Reach out to your local, state and federal elected officials.

Invite them to come by the dealership and see first-hand what it is you do and how you do it.


I would also encourage you to get involved in your dealer associations. Consider

contributing to their political action committees that support candidates for office who

will champion our industry.


One final piece of advice – leave the dead fish at home.

THE REFUNDS ARE READY: WHY THE RIGHT INVENTORY CAN MAKE OR BREAK YOUR TAX SEASON INVENTORY AGILITY








DATA THAT DRIVES YOUR 2024 DEALERSHIP MARKETING STRATEGY

Automotive digital ad spend increased by 11.7% in 2023. Experts predict this figure will continue

to rise in the future. (source: eMarketer)


The increased investment into digital makes sense. 76% of new and used vehicle shoppers run

a search before buying. Automotive consumers overwhelmingly turn to search engines to find

dealerships and get answers to their questions. (source: LSA)


According to data collected and released by Statista in 2023 (most recent data), car dealerships

in the United States spent in total 8.57 billion U.S. dollars in advertising the previous year. The

amount slightly increased compared to the year prior. However, ad expenditures remained

below the level recorded pre-pandemic.


A BREAKDOWN OF CAR DEALER AD SPEND, BY MEDIUM

Digital advertising accounted for roughly 70 percent of the U.S. car dealerships’ media budget in

2022. That year, car dealers’ advertising spending amounted to a total of around 8.5 billion U.S.

dollars. Automotive advertising spending in the U.S. was forecast to increase 7.7 percent in

2023 to reach some 20.8 billion dollars. One year earlier, the industry was among the country’s

top five leading categories in measured media spend.


Eight out of 10 U.S. car dealerships in a survey by Statista stated they invested a share of their

ad budget in online video advertising. Social media and search followed as the most popular

digital formats.


Regarding return-on-investment (ROI), audio streaming took the lead. Nearly 80 percent of

respondents deemed platforms like Spotify and Pandora worth the ad dollars invested.

Streaming TV and online video followed, both mentioned by 70 percent of respondents.


WHAT THIS MEANS FOR THE INDEPENDENT DEALER

While the studies included here include large new car dealers and auto manufacturers, in

addition to independent auto dealerships, you may be thinking that digital streaming on

platforms like Spotify, Pandora or iHeartRadio is just something for big national brands.


But you don’t have to have a huge marketing budget to advertise on audio streaming apps. In

fact, most offer hyper-localized ad targeting where you can get started with a very minimal

investment, and then scale up as you see success.


And while the automotive industry continues to invest in online marketing, there’s a huge

opportunity to put advertising dollars into audio streaming – the platform that your peers have

recently found the highest return on investment.


Sponsored by Buckeye Dealership Consulting, Kinetic Advantage, & Passtime

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