Category Archives: Carsales

Careers – Why did you leave?


9 January 1986 marked an important day for me – it was my first day of my working life after leaving school.

Just recently I “relived” my journey from that day and the decisions I made along the way; holidays are good for that (sometimes). More on these decisions further on.

It just happened to be exactly 31 years later on 9 January 2017 when I was sitting in a restaurant with friends including three 17 year old boys (including one of my own) while on holiday in Broadbeach on the Gold Coast when talk turned to what these kids were going to do in life.

With the three of them heading into their final year of high school this year, the discussion turned to how big a year it is for them, that they get a decent VCE score that will enable to have more choices in what they can do at university and/or in the work force, etc.

They asked me how my final year in high school was, what I studied at university, what my first job was and finally how did I get to where I am today.

Immediately I didn’t want to talk about it. I didn’t want them to know that I didn’t do my final year in high school and didn’t go to university (until much later anyway). Why? Simply for me, I believe the professional world has changed and finishing high school with an eye to further education is much more important for these kids; I didn’t want to give them an out.

I didn’t want them thinking “if you didn’t do it and have done ok then it can’t be that important”. So what did I do? I preceded to tell them the whole story – why I left school, why it was different then, what I did, what steps I took and what chances I took.

Did it help them? I hope so. Did it help me? Yep. I actually found it very therapeutic to trace back my steps from my last days in high school, exactly 31 years to the day.

Today with LinkedIn it’s pretty easy to get a quick overview of someone’s work experience path but what we don’t always see and appreciate is the decisions or reasons each takes in each “fork in the road”.

Here’s a quick snippet of some of my big decision points:

Leaving school
I didn’t mind school, my marks were good and wasn’t looking to leave after Year 11 but dad thought that since he left aft Year 11 and had done ok then maybe I should. A job as a trainee computer operator was up at a company a friend of his was at and he “strongly” encouraged me to apply.

I got the job at Idaps Australia and started 9 January 1986 when I was 17 years 42 days old. As a comparison, my son was 17 years 75 days old for the chat described earlier (my older boy was 20 years 44 days old on this day, has completed high school and two years at university).

I must point out that although I started as a trainee computer operator my interest level and/proficiency in computers and technology was very close to zero.

Leaving Idaps
Life as a trainee computer operator (on IBM mainframes) at Idaps was great – 3 weeks of shift work, 2×12 hour shifts every 4th weekend and then 7 days off, again every 4th week. It was during 1986 however, that I found myself at Richmond Football Club at about Round 9 playing in the U19s which then led to me being appointed Captain in 1987. Juggling shift work with U19’s football was ok but as I entered the Richmond senior pre-season I had to make a decision.

I left Idaps (or more to the point I left shift work) after nearly 2 years so I could train properly for football and during 1988 I undertook a Diploma in Computer Programming at the Control Data Institute. This was a 6 month “intensive” course which I finished in August 1988.

On 10 October 1988 I started life as a computer programmer with Reynolds & Reynolds under the tutelage of Greg Roebuck. I was still only 19 years 316 days of age.

Leaving Reynolds
I spent over 10 1/2 years at Reynolds helping to develop, support and grow the best Dealer Management System in Asia Pacific. I got to spearhead some of defining products for the company including parts priority orders which became the building block for us to build CLERA, real time automated parts ordering between dealers. The technology used here then led to real time automated vehicle uploading and not long after that, carsales.

This was around me turning 30 though (this was significant to me for whatever reason) and I was fighting with two lessons from my dad – 1) keep loyal and you will get looked after and 2) if you want get anywhere do it yourself.

It was at this time that a colleague probably saw that our skills matched to do something ourselves. He didn’t talk me into leaving but I highly doubt I would have left without his influence. During May 1999 we started Digital Motorworks in Australia (DMi as it was known) and left Reynolds.

Leaving DMi
Like Reynolds I learnt an enormous amount running DMi from startup. The first 4 years saw me looking primarily after the technology side but with high interaction in deal making. We were acquired by ADP and then my partner left the business meaning I was CEO from July 2003 through May 2009.

DMi grew top and bottom line healthily each year but investment was drying up and we were servicing primarily a legacy environment so I completed a Masters in Business Systems as “personal insurance”. During 2008 I started talking with Greg Roebuck about a range of opportunities at carsales including partnerships, JV’s, etc and finally he said “come and work for carsales”.

I started at carsales on 9 June 2009. Greg Roebuck has announced his retirement this week and Cam McIntyre steps into the chair. I’ve worked directly for Greg for over 18 years so it feels like the start of a new journey and I have lots of unfinished business with carsales under Cam.

In reality, the decisions I’ve had to make in relation to may career have been pretty straight forward compared to many. I’ve never jumped around for more money, there’s always been much more to it. I like it that way.

NB Please don’t associate this post as anything predicating me leaving carsales.


Don’t Burn Bridges


In my blog post “2 Pieces Of Career Advice“, I talked about my father giving me two pieces of advice as I started my working career which I believe have held me in good stead.

There is actually a third one that wasn’t as implicitly said as the first two were but nonetheless was something that has stuck with me – “Don’t Burn Bridges”.

I have a lived through a couple of great examples where I have benefited from not burning bridges where I very easily could have.

Example 1 – Leaving an Employer

I started with Reynolds & Reynolds just before my 20th birthday as a software developer, working hard and gaining trust over 10.5 years to be driving and building some projects in the company’s history that have truly been game changers (ie CLERA for Parts and their Internet strategy incl carsales).

When I decided to leave Reynolds with a colleague to do our own thing, we weren’t popular with the owners, board, executive, etc and then the fact that we ended up working with practically all of carsales competitors heightened any tension that was there (as carsales was born out of the Reynolds business).

Fast forward another 10 years and I found myself with the opportunity of re-joining that same ownership, board, executive, etc at carsales which I ultimately did and now feel once again part of the “inner sanctum” helping them build and run great businesses.

I could have quite easily behaved in a manner in my exit from Reynolds and even further in my competition with carsales that would have “burnt the bridge”. The fact that I (sub)consciously didn’t and acted in respect of this is something I am happy about and has proven to be the right action.

Example 2 – Re-engaging a Client

When I left the employ of Reynolds and started Digital Motorworks (DMi) as described in example 1, the first client we captured was Pacific Access who through their Yellow Pages field force, had visions of an auto classifieds vertical.

Just under a year into a 3 year contract DMi worked with Pacific Access to execute their plan which at that point they concluded it was harder than they anticipated and made the decision to close.

Pacific Access had signed DMi to an exclusive deal over this 3 years and considering we had forgone other opportunities even the short period of the contract, we were not in a position to not exercise our rights of the contract and therefore had to ensure the contractual commitments were met.

Fast forward 8 years and Trading Post (now owned by Sensis, formally Pacific Access) approached DMi to re-engage for our inventory services. The result was a very satisfactory 3 year agreement to provide these inventory services for the Trading Post brand.

Again, the manner in which we handled the contract exit the first time around could have been terminal for our relationship with the business. The fact that it was not is testament to being aware of not “burning bridges” and acting with integrity.

Moving Forward

In reality not burning bridges is not and should not be a conscious decision; you can’t agree or please everyone but the way in which you conduct yourself should be enough that repeat business not be an issue and if it is an issue, it’s probably not your problem!


A Trade In Price is not a Retail Price


One thing the Internet has done to the car sales industry is (even further) blurred the line between a consumer’s view of a wholesale (trade in) price and a retail price.

When I say “blurred the line” I really mean “created an even greater divide”.

What do I mean here? Well, a consumer now has at their finger tips a proliferation of information on cars for sale, not only in their area but all over the country. Even more, this data is updated multiple times a day.

An important part of this information is the price of their car. This is where it is blurred as the car owner can easily see retail prices of the their car but rarely the wholesale or trade in price.

So when a consumer is buying a car from a car dealer and a trade in price is provided for their car, they are hit with “sticker shock” as they are conditioned on a retail price, usually the asking price and not even the sold price, further increasing the gap.

The end result is the consumer chooses to sell the car privately online and the dealer misses out on acquiring a good car to on sell.

carsales‘ Instant Offer goes a way to plugging this gap in bringing trade in cars to dealers as an option for private sellers selling privately.

Instant Offer is a great alternative for a consumer looking to sell their car quickly without the private seller process where our partner, a reputable wholesale buyer, will inspect your car to check that it matches the details submitted online and meets the offer conditions and will then offer you a wholesale price for your car (similar to the price a dealer would offer as a trade in).

While you may be offered slightly less for your car than you would selling through private channels, this is a quick and convenient method of sale which offers you next business day payment. From there the car will usually find itself for sale through the dealer network just like a trade in would.

It’s important to remember that wholesale prices (including trade in prices) will never be retail prices – they can’t be – but like retail, wholesale is negotiable and doesn’t have to be accepted.

At the end of the day it is in an auto verticals interests to ensure buyers and sellers (dealers and privates) have efficient methods to transact on cars in a retail and/wholesale environment.

Dealers and privates need to take advantage of the “network effect” a good online auto vertical brings. That is, the more sellers, the more buyers.


Take 2: Who has the No 1 Auto Classified Website in the World?


carsales is the number 1 auto classified website in the world.

Ok, there, that’s my answer to the common question of “where is carsales?” after my last post Who has the No 1 Auto Classified Website in the World.

How do I make this assertion now? (note: no I wasn’t told or advised to and I don’t feel obliged to!)

The best way I can answer this question is to quote the last paragraph of my last post:

At the end of the day, all of these websites are businesses and we all know that, as my esteemed former colleague used to remind me, “you can’t bank wank” – in other words, making money has to be the overriding measurement.

There you go, carsales is the number 1 auto classified website in the world because of the financials it delivers compared to the size of the opportunity, ie Australia’s comparative size in population & cars sold compared to the UK, US, China, etc.


A close second would have to be Autotrader.co.uk (although it is number 1 in terms of market cap) which has done an incredible job in the UK with others such as Autotrader.com (probably number 1 in terms of revenue), cars.com and Autohome.com (number 1 in terms of traffic) probably there abouts, all being great online businesses.

I could write another dozen posts with a different website in each post putting up a claim to be the number 1

Three areas where carsales is very strong compared to the before mentioned businesses are in private sellers, display advertising and adjacency businesses. These three business units help to make carsales the incredible business it is today.

The private seller business in carsales is an absolute standout compared to the majority of other online auto vertical businesses around the world. This is an area where large general classified business (horizontals) have really taken the space but carsales has managed to get and maintain a strong holding with the Australian consumer because “it works”.

The display advertising business of carsales has been a unique success story that has been able to deliver quality, premium audiences to automotive focused businesses, particularly OEM’s where a proliferation of data from consumers going right through their car finding journey has made it the most qualified advertising medium available.

The adjacency businesses are the newest of the three with the sale of tyres online through Tyresales.com.au, vehicle finance through Stratton Finance and car inspections through Redbook Inspect the standouts. Each of these businesses are partnerships carsales has entered into that leverage the carsales audience while still keeping an entrepreneurial style to ensure they grow as standalone businesses in their own right while delivering value to carsales through smart integrations.

Let’s not forget too that if carsales is doing well then it’s dealer clients must be doing well as it’s business model for the biggest part of its business is directly tied to what it delivers its dealers – leads which leads (pardon the pun) to sales.

The truth is, I could write another dozen posts with a different website in each post putting up a claim to be the number 1 auto classified website in the world.

I won’t do that but it does show one of the reasons to why this is a fascinating space to be involved in.


Who has the No 1 Auto Classified Website in the World?


What if I said to you that the number 1 online automotive vertical website in the world in October 2016 was Autoscout24.ch in Switzerland?

I can, for the first time, compare sites from different countries on the same measures…..based on my traffic health algorithm on 72 websites in 38 different countries

It is not unusual for us to visit a new country and have 3 players swear they are number 1 in online auto classifieds.

One points to traffic, another to inventory and another to dealers (who needs revenue and profit anyway?).

At the end of the day……making money has to be the overriding measurement

Everyone wants to be number 1 and it seems this is especially so in the online world where to claim yourself as the number 1 player in your niche is vital for advertisers, investors, etc.
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This is hard enough to decipher within each country so how do we determine what automotive vertical website is the number 1 site globally?

From an online automotive vertical aspect, I see businesses claim number 1 in their country/region based on anything they can measure has them in front – visits, unique visitors, inventory count, dealer count – and the numbers can be near on impossible to test from outside the business.

You can’t do it by visits, inventory or dealers because a website operates in a country that has a large population with a huge car market will naturally have more visits, inventory and dealers – this does not make them the number 1 in the world.

I’ve wrestled with this for some time as carsales looks to strategically partner with more online automotive businesses around the world and I look at peers, competitors and targets so I’ve come up with a measure that for the first time doesn’t care how many visits, inventory or dealers are on the site.
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So getting back to who is number 1, how’d I come to this conclusion and what exactly is Autoscout24.ch number 1 in?

What I’ve done is created an index using a weighted algorithm for each automotive website around the world based on things that measure the health and stability of their traffic, namely user engagement and traffic sources. For me these metrics can tell you a lot about the online business and for the first time, I can measure websites from country to country on like for like data in order to get a picture of their real position in the market.

Like everything in online, one form of measurement doesn’t tell you the whole story but this index allows me to rank every website around the world to get an accurate picture of their traffic health irrespective of their traffic volume (although to get an “official” index a website must have over 100,000 publicly measurable monthly visits; this number is arbitrary).
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This means I can, for the first time, compare sites from different countries on the same measures. Traffic health should be pretty basic and each component would have individual focus within each business. Product teams would be all over user engagement metrics; SEO experts would be working to ensure the long tail of each website is indexable; and SEM spend would be closely monitored to ensure the right spend is getting the right results.

It’s pretty easy to correlate a high SEM spend, low direct traffic and a high bounce rate and what it means – poor traffic health – but as with most metrics to measure a number 1, they usually only tell part of the story.

In any case, based on my traffic health algorithm on 72 websites in 38 different countries, the top automotive vertical website in October 2016 was Autoscout24.ch (Switzerland) and businesses that are part of the carsales network including Encar.com (South Korea), Joinvillecarros.com.br (Brazil) and Chileautos.cl (Chile) are in the top 5 (the website rounding out the top 5 was Gebrauchtwagen.de in Germany).

Each of these websites has very strong user engagement metrics and extremely healthy, sustainable traffic sources.
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It’s interesting that some countries and in fact continents have common traits in user engagement and/or traffic sources that flow through the websites.

The regional Brazilian website indexes do not surprise me given the regional focus in Brazil where dealers and consumers alike are somewhat parochial to regional automotive websites resulting in high user engagement and positive traffic sources which sees websites that are now part of the Webmotors network high up in this indexing including Blucarros.com.br, Joinvillecarros.com.br, Compreauto.com.br and Meucarango.com.br.
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Anyway, my indexing algorithm gives me a great picture of where our peers, competitors, targets and carsales network sites are at around the world irrespective of the traffic they claim, inventory or dealer count.

At the end of the day, all of these websites are businesses and we all know that, as my esteemed former colleague used to remind me, “you can’t bank wank” – in other words, making money has to be the overriding measurement.


3 Keys to Converting Online Leads


carsales has successfully operated a business model centred around the value it delivers to its clients.

The billing mechanism is online leads delivered but the model is about the sale not the lead. This is applicable to all businesses using online as a sales mechanism, not just the auto industry.

It’s interesting in our business as some clients will convert 1 in 4 online leads to a sale and another client in the same city with a similar inventory mix will convert 1 in 8 leads. Why?
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The answer comes back to the way each and every lead is treated where:

a) Those who sell 1 in 4 leads want more and more leads (because they know they are sales opportunities) to the point where they will call our support centre to see what is wrong when leads drop off because they know that it means their selling will drop off.

b) Those who sell 1 in 8 leads complain about the quality of leads.

Do the clients receive the same quality of leads? Yes, leads are not vetted to send the good ones to certain clients!

The keys to converting online leads are available to all businesses:

1 Treat each and every lead as a hot prospect – the person is sending a lead or calling because they want to buy from you or use your service. In our business, more often than not a sale is made on another car in the dealer’s inventory than the one enquired on.

2 Speed of response must be immediate and is paramount – first of all a template email response and then human follow up. Consumers regularly tell us they end up buying from the dealer who contacted them first or more to the point, some dealers just don’t respond or fail to follow point 1.

3 Track and measure all leads from all online sources in the one lead management system – this is especially so if you have sales people you are relying on to sell your products/services and look after your brand. Emails can be deleted and phone calls “didn’t come in” but not so in a lead management system where email leads are logged into the system and can’t be deleted. Calls are also logged and recorded.

When you think of it, it is kind of funny how some say the Internet (or carsales in the auto space) is making it hard to compete and making it too expensive.

We have far too many clients who follow these 3 steps and are successful online for it to be true.

Sometimes ROI attribution and accountability can be a scary proposition, especially in a changing world.

Maybe go back to the “good old days” and bring back the newspaper “rivers of gold”, that will fix it.


10 Things to Drive Chileautos Further


carsales launched the new Soloautos website in September (9 Things Moving Soloautos in Mexico) and today carsales is very happy to have released the new Chileautos.cl website.

Both sites will benefit from the same features but the Chileautos deploy signifies some significant economies of scale in the LatAm region, none the least was the speed in which the website was integrated following the successful deploy of Soloautos last month.
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Here’s 10 things we’ve implemented into Chileautos that we think will give the business a kick along:

1. New logo. Chileautos is our second international brand to adopt the carsales “swish” making it instantly recognizable as a carsales brand. We’ve kept the Chileautos red and blue in the logo and have added the lock up “El portal No 1 de vehiculos”.

2. New website. Now much cleaner, stronger action points throughout the site with larger vehicle photos. Along with the new logo, the new website signals to OEMs in particular that Chileautos is a destination point for not only used cars but for new cars as well.
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3. Ryvuss search. carsales‘ proprietary search platform has been integrated into the new website giving Chileautos best in class search and search navigation capabilities.

4. New Cars. Chileautos is clearly Chile’s number 1 automotive vertical portal with a very strong reputation in used cars. Now Chileautos has information and photos available on every new car available for sale in Chile which is an exciting proposition for car buyers, dealers and OEMs.

5. New sell pages. Cleaner and clearer process to point sellers to the selling package that is right for them.
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6. Autologia integration. Autologia is our editorial brand which we acquired some months ago and have now integrated tightly into Soloautos and now Chileautos, tailored to the Chilean market. This is a great result for all car buyers, researchers and enthusiasts visiting Chileautos.

7. Better SEO structures. This is a very important piece of the new website so that we do not lose any domain authority that Chileautos has built up over the years. SEO helps consumers find the right information in the Chileautos when searching for cars in Google Chile – remember Google is for searching, Chileautos is for finding.

8. Move into AWS. By moving Chileautos into the cloud we immediately get an uplift in scalability, reliability, disaster recovery options and response times, not to mention carsales management and support with the website now sitting next to all carsales other online assets.
20161028_chileautosautologia
9. New display advertising options. The new Chileautos website enables us to offer OEM’s, dealers, finance companies, insurance companies and the like more targeted, integrated advertising options that compliments the inventory and editorial focus of the site.

10. Back end integration. Not only does the new website integrate seamlessly with the existing Chileautos dealer control panel, it also integrates into the carsales Autogate system. This enables Chileautos to provide an increased level of service to existing dealers using existing tools and also gives Chileautos the opportunity to leverage from Autogate’s proven lead management features.

This is just the start of things to come and it is certainly an exciting time for Chileautos and Chileans looking to buy and sell cars!


No Online Third Party Marketplaces


Online third party marketplaces like carsales, Webmotors, Soloautos, Chileautos and Encar play an important role in connecting car buyers and sellers.

For car buyers they provide choice and information in the one place when looking for their next car.

For car sellers they enable their inventory to be put in front of millions of buyers and compete on equal footing to other sellers no matter the size.

Now, let’s imagine an online world with no online automotive third party marketplaces. How would sellers get their cars seen by buyers and how would buyers find the right car for them?

Dealers would have to rely on their own website to advertise their cars to sell. Yes the vast majority have their own website today but it is a totally different cost and investment conversation if they had to rely on their own website to attract buyers.
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The massive investments and efforts third party marketplaces make to get the right car for the right buyer would be the domain of the dealer. Just like the old days when a dealer had to get a spot with good through traffic on a main road, smaller dealers would be up against it again.

The search engine giant(s) and those who have created business around it (i.e. SEM, SEO “experts”) would love it if dealers had to rely on how their website ranked in search, organically or paid.

Car buyers are buying new cars whether they be new or used – have you ever heard someone show you their “new used car”, they always buy a new car it’s just some are used – and third party marketplaces are the only place where new and used are presented equally.

This is an important part of today’s online world that I think is overlooked by most. Buyers come to third party marketplaces to narrow their car search so by mixing new and used together the buyer’s comparison set is broadened, bringing in cars they probably didn’t know yet could afford and/or were available.
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Advertising in print still wouldn’t be viable so investing in the dealer website at a level far exceeding today would have to be the way forward.

I’m not even sure what private sellers would do. I guess they’d have to advertise in the newspapers per pre-Internet and rely on the publisher to list everything online that they have offline, a throw back to the News Limited and Fairfax 1990’s business plans. Maybe the publications like the Trading Post would still have currency?

Facebook Marketplace isn’t even the answer. How many of you want to sell your car to a “friend” really?

Online third party automotive marketplaces are a natural fit in the same way a Google is for search in navigating in today’s connected world.


Danger Doing Business in Brazil? Pfft!


Embarrassingly, I’d never heard of São Paulo before carsales started to talk to Santander about its Webmotors business just a few years back.

Not many people in Australia know anything about São Paulo as I think when most people in Australia think of Brazil they think of Carnival in Rio, the Amazon jungle and lots of danger.

The danger part is what I get asked about the most each time I visit our Webmotors business.
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This is especially so when articles like naming world’s most dangerous cities in a news.com.au article on 28 January 2016 in which Brazil had 21 of the top 50 named and Latin America 41 of the 50 (http://www.news.com.au/world/the-worlds-most-dangerous-cities-have-been-named/news-story/094d3710262f823329bbea27f9eb3744).

São Paulo wasn’t on the list but when you have a city like São Paulo with 23m people (in the greater area) of which a great percentage are poor, there is going to be a lot of crime and this makes it dangerous; everyone I deal with in the city tell me this. It is not uncommon for people to be robbed at gun point or kidnapped.
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I will say straight up that in over fifteen business visits there over the past three plus years, I am yet to feel threatened (touch wood). In saying this, I make a point of not putting myself in possible positions with the bulk of my time split between the hotel, office and with local work colleagues.

From a business visitor aspect, here’s two examples of differences between São Paulo and Australia’s largest cities:

1 Road Rage
Whilst the most common after market accessory for cars is bullet proof glass and any medium to high end car is fully bullet proof, combined with horrendous and chaotic traffic with weaving drivers (especially motorbikes), in all my visits to São Paulo road rage just isn’t part of the scene. Merging is just part of what they have to do to get around. Try merging into Punt Rd on any given weekday and you’ll probably see some road rage and almost without exception, just plain ignorance and arrogance that can certainly turn dangerous!
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2 Celebration Time
I often visit the bar and restaurant neighborhood of Vila Madelena in São Paulo with the Webmotors team which can see thousands of people in the dozens of establishments drinking in the streets from early afternoon through to late at night and I am yet to witness one bit of aggression despite drinking allowed in public, bottled beverages are common on the street and the usual bumping into randoms in large crowds that you see everywhere. Imagine in Australia if alcohol could be purchased from street vendors in bottles and you couldn’t help but run into crowds? There’s a reason alcohol is barred in public and bottles are barred in most bars here – we are a nation of cashed up bogans (generalisation I know but a somewhat harsh reality).
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The poor usually have nothing to lose so for this reason the danger is somewhat harsher than drunk, cashed up bogans king hitting someone during a big night out or getting upset because you had the nerve to merge into “their” lane.

We Australians could certainly learn a thing or two on these things from São Paulo and Brazil in general.


9 Things Moving Soloautos in Mexico


carsales push into controlling positions in Mexico and Chile follows our successful deploy of IP and tech services into our minority, strategic positions in Brazil and South Korea.

Here’s 9 things we’ve implemented into Soloautos.mx in September that we think will give the business a kick along:

1. New logo. For the first we have introduced the carsales “swish” to one of our global partner’s logos making it instantly recognizable as a carsales brand. We’ve kept the Soloautos red and black in the logo but have made all the letters lower case to give it a more modern look.
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2. New website. Now much cleaner, stronger action points throughout the site with larger vehicle photos. Along with the new logo, the new website signals to Mexico that Soloautos is on the move. Our first few weeks have already seen a significant increase in pages per visit and a lowering in bounce rate.

3. Ryvuss search. carsales’ proprietary search platform has been integrated into the new website giving Soloautos best in class search and search navigation capabilities.
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4. New sell pages. Cleaner and clearer process to point sellers to the selling package that is right for them. First day live with new sell pages was a record day in terms of ads placed and this positive trend continued in the first few weeks.
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5. Deeper Autologia integration. Autologia is our editorial brand which we have now integrated tightly into the new website. This is a great result for all car buyers, researchers and enthusiasts visiting Soloautos.
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6. Better SEO structures. This is a very important piece of the new website so the right information in the Soloautos website can be found by consumers searching for cars in Mexico – remember Google is for searching, Soloautos is for finding.

7. Move into AWS. By moving Soloatuos into the cloud we immediately get an uplift in scalability, reliability, disaster recovery options and response times, not to mention carsales management and support with the website now sitting next to all carsales other online assets.

8. New display advertising options. The new Soloautos website enables us to offer OEM’s, dealers, finance companies, insurance companies and the like more targeted, integrated advertising options that compliments the inventory and editorial focus of the site.

9. Back end integration. Not only does the new website integrate seamlessly with the existing Soloautos dealer control panel, it also integrates into the carsales Autogate system. This enables Soloautos to provide an increased level of service to existing dealers using existing tools and also gives Soloautos the opportunity to leverage from Autogate’s proven lead management features.

This is just the start of things to come and it is certainly an exciting time for Soloautos and Mexicans looking to buy and sell cars!


Premium Verticals Up Against The Freemiums


carsales.com runs a Premium marketplace in the online automotive vertical space.

As carsales takes investment positions in more global online auto businesses (auto vertical), we are more and more competing against some very large Freemium businesses like OLX and Mercado Libre across Latin America, with each of them being general classifieds sites (horizontals).

Horizontal’s have a role to play in getting rid of your old household items. A car is not one of these

Webmotors.com.br, Soloautos.mx, Chileautos.cl and Encar.com are all online Premium players in automotive competing against the horizontal Freemium players.
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This is certainly not new to carsales as our largest competitor in Australia is also a horizontal. That’s not to say we don’t have serious competition from other Online auto vertical players in Australia; we’ve always faced this.

“The easiest way to get one million people paying is to get one billion people using.”

A Freemium website makes their money by charging for value added services once you have listed your item. I love Phil Libin’s (Evernote) quote “The easiest way to get one million people paying is to get one billion people using.” This is certainly what Freemiums focus on.

The Freemium general classified players of the world are following this by having a platform to advertise a car in the same way as your 8 year old couch; and it shouldn’t cut it for a car buyer or seller.

Remember this – a car is (almost) everyone’s second largest purchase in their life therefore deep information, CarFacts reports, inspection reports, reviews and above all else, trust and safety are all major factors and things only a Premium vertical online website is in a position to offer.
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The role we play in each of our global markets is as the Premium and Premier online auto vertical player; this means we need to do cars better than anyone. From searching, finding, researching and buying to selling with everything you need to make a quick, safe and profitable sale.

Our goal is to help you sell as opposed to helping you advertise; this is a BIG difference. This goal is different to Freemium horizontal player who is more interested in getting towards the “billion people using” rather than making the experience of each and every user one that represents the investment each is making.

Horizontal’s have a role to play in getting rid of your old household items. A car is not one of these from a selling or buying perspective.
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This is why we will continue to invest in our platform to provide the best information and tools to transact on the second largest single item in most people’s life’s in the safest way possible.

I think there’s a business there.


Pay to Advertise OR Pay to Sell Online?


Will consumers pay to Advertise their car online? It’s an interesting question.

Advertising versus selling are two different things. A typical online advertising model goes like this – pay me $50 to advertise your car for 30 days, if it doesn’t sell then pay me another $50 to advertise it for another 30 days. It is in the advertisers interest for you NOT to sell the car as they will make more money when you advertise again the next month and the next…..

Now let’s change the question slightly –

Will consumers pay to Sell their car online? Now you are talking; the answer has to be yes.

A typical online selling model goes like this – pay me $65 to sell your car regardless of how long it takes. It is in the online businesses interests for you to sell the car as quickly as possible as this then creates a good experience and word of mouth so they provide tools and tips (paid and unpaid) to get the car sold.
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Encar.com, our leading auto website in South Korea, wasn’t charging private sellers to advertise their cars online when we came into the business.

Our new business partners didn’t think South Korean consumers would pay to advertise their cars. They were probably right but would they pay to sell their car? This is a question they did not know the answer too.

We were confident that as the clear number 1 auto website in South Korea providing enormous value to car buyers and sellers, consumers would (and should) pay Encar to sell their car online.
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So the carsales team worked with the Encar team on structuring a private seller platform that would help the South Korean consumer sell their car quickly and easily for a reasonable price.

To say our business partners were nervous was an understatement. They were certain the number of private seller cars would drop right off a cliff.

In April last year we made the switch to be a paid model for private seller cars and in the first month saw a small drop off in private seller cars and was already a much better result than our partners envisaged.

Each month the “drop off dropped off” and in just 6 months we were back to the same level of private seller cars added each month in a paid model to that of a free model.
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There are a lot of factors that went into the decision making process and planning for a change like this to go as well as it did. A lot of things need to be put in place to make it a success, none the least was the mindset of the Encar management.

Don’t get me wrong, the fact that Encar is the leading auto website in the country meant that we were extremely confident that our model of “pay once till sold” would work – that is, don’t pay to advertise, pay to sell.

I’ve seen lots of websites fail to make the change from “free to paid” as there is a lot to consider, none the least is the mindset that is your website geared around advertising or selling?