Learning from Europe with Paul De Vries

November 15, 2023
It’s Wednesday and it seems conference season is coming to a close. This morning is a bit of a special episode as Paul got to chat with Paul de Vries, who has a unique perspective on the auto industry coming from Europe.
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Show Notes with links:

Paul De Vries gives us some insights into the shift to agency models in Europe and how the Dutch market is navigating the shift to EVs.

  • Dutch dealerships are struggling with the agency model, leading to dropping sales and mistakes in invoicing.
  • OEMs are reframing dealer models as agency models to gain benefits, despite dealers' resistance.
  • Dutch dealers investing in solar panels, energy contracts, and selling extra services like energy storage and charging.

Kyle Mountsier: 0:32

All right, good morning, you get me I'm hanging out alone. But you get a little special episode. So, enjoy this today, sit back and relax. Let's go. If you really want to know who isn't who I think when they see me, in the run up on me what two years we've been running this show at this point, we have never actually had a single host this morning, you just get me because everybody is trying to get back in their seats from all the conferences, everything that's happening all around the country. There's people flying everywhere, modern retail conferences, ended yesterday evening. And so I'm hanging out here by myself. This morning, and just a little bit, we've got an interview with Paul of Rhys, if you don't know, Paul, he is from Holland and has just incredible insights about exactly what's going on overseas. So our Paul, Paul daily got to interview him. But just a couple things before we get going. One if you are not registered right now for our our webinar tomorrow or Soto edwebinar 30 minute webinars, you're going to want to do that we're going to be within VOCO talking about revolutionising phone call management. And my good friend, Zack Hendricks is going to be with us, you can register by going to a soda.com scrolling down just a wee bit. And the registration link is right there. So that's, that's the big thing going on. Also, if you have been traveling or heard anything, or have photos or anything, make sure you're tagging us in them, we want to share them out, share what's going on the connections and conversations that are happening across auto. Also be on the lookout. Whether you're an industry partner dealer, or OEM or anything, be on the lookout over the next few days as we prepare to fully announce and lean into a soda con 2024. And everything that we have planned for you there, that's going to be incredible. We've got dates we've got, how industry partners can get involved already ready to just hit the send button. So if you're on our email, make sure that you're paying attention to that. Check your emails for all of the information around that. And we'll be sharing it out on social as well. That's enough from me. We've got Paul devise a little bit of a conversation, diving into the Evie landscape in in Europe, the agency model and how dealers over there are starting to look at different verticals, for revenue streams and how they're serving other industries with their opportunity for revenue. So I won't bore you any longer with just by myself. Go ahead, check out this interview with Paul the rise.

Paul Daly: 3:22

Okay, I'm standing here with the other Paul, that makes me feel taller than I am. But this is basically if you don't know Paul De Vries is a result of research. If we see I got it, right. He is basically the Brian Pash of Europe is what I'm going to call you. So why don't you tell people what it is that you actually do? We've seen each other here quite a few years

Paul de Vries: 3:43

here. So actually, I want to be the Brian patient, the David King combined,

Paul Daly: 3:48

that's a good combo.

Paul de Vries: 3:49

So my articles or my content is mostly about online, lead, follow up. So that's my history as well. And I'm trying to be better at marketing, but I will never be as good as buying the marketing. But I want to be that good as David about lead handling. There

Paul Daly: 4:08

you go. So why don't you give us a little insight because the European market is very different than the US market. However, it is also maybe an indicator of some things that are to come in the US and we get to see how the European market handles things like EVs agency model before, like we really have to feel those questions. So maybe give us a little insight into what's happening in the European market and how you see it connecting to the US market.

Paul de Vries: 4:30

So for sure, in the Dutch market, we are a fairly small market. So it's a very good market for OEMs to try something because if it breaks by us, it doesn't matter how fun have so you see on the fourth brand, we started the agency model in January I think and there you can see that the sales is dropping off like and black slope on the ski piston.

Paul Daly: 4:57

So they started agency model and sales are down robbing are dropping

Paul de Vries: 5:01

fast because every dealer holding in the Netherlands which have forts, trying to convince the consumer entering the Ford dealership to buy a Ford to buy something else have they're stuck there, which is not the Ford brand, because they want to control the consumer buy themselves. So you see the first faults already happening. So the lameness is now doing it for the last two months, the agency model and didn't produce an invoice to the consumer, because they didn't set up that invoicing thing all already. So you see the mistakes already happening. And now you see the discussions with some OEMs. That they are saying we're going on an agency model, but it's actually a dealer model, but they don't want to give that credit. So we're calling that an agency model. So

Paul Daly: 5:51

what is your prospect for when you look at the US market? Do you see that more or less likely to happen in this market? I know it's not your market. But you know, a lot of dealers in the US and you're very

Paul de Vries: 6:03

limiting. I don't see it happening at all the agency model. Sure BMW wants that. Sure. Mercedes wants that. And they are calling it an agency. But that back end, there are some benefits, but they're also sure as hell just in dealer model, but we are going to reframe it. The biggest impact is going to be the Eevee market for right

Paul Daly: 6:24

great, great, great segue I was gonna make that segue but you're a professional content creator. No,

Paul de Vries: 6:29

but the Evie market like we know it. So in the Dutch market, Tesla is outselling BMW in total. So Tesla is selling more cars than be

Paul Daly: 6:41

the BMW is or evey. Yes, yes.

Paul de Vries: 6:44

So there is a shift going on. But what OEMs are talking about for years that in EVs, there is no margin to be made. So Dutch dealers, for example, are investing a lot in the batteries in charging stations in solar panels, etc. So if they are selling a car, they selling the solar panels in the car, they selling the outlet on the house on the office, they are selling the energy contract as well, and especially one dealer in the Netherlands, are selling a lot of key as a new guys. And kids, new owners have the ability to, to make the battery both ways. So you can put in energy in the car, but you can also sell it outside. So they built their facility with all solar panels. They're charging all the cars at the day to fully to fully loaded, and sell the energy at night to the to the energy company.

Paul Daly: 7:46

So they're acting like an energy company, not a transportation company, because everybody

Paul de Vries: 7:51

was saying you cannot make money on the sale. They thinking how can I make money on the sale? So the fee, car is the starting point, but never the endpoint, so you can sell a lot of extra services on it.

Paul Daly: 8:05

Well, Paul, always fascinating talking to you. I love it that you're in kind of like a test market, it probably doesn't feel so great to be the test. Tragic. But what it is right is that it allows you to constantly pay attention and bring value to the automotive community. How can people stay follow along with what you're doing or stay in touch with you? What's the best way?

Paul de Vries: 8:23

So we are not in to that Facebook thing, actually, especially not on the business side. So it's dominantly by LinkedIn, and boldface and most common surname last name in Holland, but you will find me

Paul Daly: 8:37

there spell the last name just for people who are just listening and watching can't see the REASVRE A S. Paul DeVries. Thank you. Thank you for your time. Thank

Paul de Vries: 8:46

you so much.

Kyle Mountsier: 8:49

All right. Well, first things first, I'm sorry that I said pot of rice. It is part of reason that's on me. Hears we talked about this a lot here, the automotive troublemaker and at asoto is that we have to be looking at as a dealer population as an industry partner population on how do we equip ourselves with the ability to appropriate revenue streams outside of just the sale or service of a vehicle. And to hear that these these dealers are looking at themselves not just as transportation companies, but as energy companies as I think something that we need to be leaning into. And and it's really encouraging from my perspective to hear how dealers are handling the new agency model and how it's just a in their in their frame of mind is just a New Dealer model as opposed to just a full takeover. And that there's been some learnings over the last year and the pain of growth and either the loss or the successes there. So all is not lost. I know a lot of times in our world, we kind of hear what's happening in Europe and we get extremely sensational about it. But this is extremely messy. that approach and just the fact that Paul is in the US learning alongside us dealers means that we've got a lot to learn from each other. So with that said, thank you so much for hanging out with me this morning. I have Paul, we'll be back tomorrow the whole crew will be back tomorrow. We're heading into 2024 gearing up for the year and I hope you're gearing up to serve some customers today.

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