Over Sticker Damage, CarPlay Pizza, Unintended Starbucks Consequence

‍SPEAKERS

Kyle Mountsier, Paul Daly

Paul Daly  00:34

Yo, it's Tuesday. It's a beautiful, beautiful Tuesday in Nashville and Syracuse, most of the East Coast. Today we're talking about what happens when you sell vehicles over sticker CarPlay. Ordering Pizza and Starbucks drink consequences. Starbucks drinks have consequences kind of feel

Kyle Mountsier  00:54

like we're gonna get in trouble this morning. I feel like we need Well, you know, we're gonna need the PR team to come out and the whole nine yards. For the show.

Paul Daly  01:04

It is the name of the show. So I guess in trouble, we're not even doing it right. I'll make it look great and make a little trouble at noon Eastern today. We're going to be live streaming, the Sodor live tonight event that we did last week we're going to be playing it again. Lunchtime where we play that? Is it LinkedIn, YouTube, Facebook or LinkedIn or air where you

Kyle Mountsier  01:26

get to struer Air where memes pop.

Paul Daly  01:30

So So noon Eastern, you can adjust accordingly. We're gonna replay we're gonna be in the comments and have a little fun. It's just such a fun show. If anything, just tuned in for like the first 10 minutes just give

Kyle Mountsier  01:41

just give it 10 minutes and see what you think. And then you might you know,

Paul Daly  01:46

see if you see me thanks me stay. We have a network style TV show that we're editing right now we shot it last week we're going to be premiering it in Tampa. In just like three weeks from today. From today.

Kyle Mountsier  01:59

It is like that

Paul Daly  02:01

Tuesday night, right? Three weeks from today. And

Kyle Mountsier  02:02

Holy Cow

Paul Daly  02:04

I know I know we have to work to do we have some work to do. Especially since the show isn't even titled yet. It's not yet. You can go to a so two x.com Get tickets really affordable tickets for having a happy hour and kind of the party if you're in digital dealer with the family reunion. We're going to kind of like do that. But at the Tampa theater, we're going to get dressed up we're going to ask you to get dressed up and like show everybody when you show up Everybody go home. Clean up kind of nice clean up clean up. So we're gonna do that. asoto x.com And okay, it's time to get trouble.

Kyle Mountsier  02:37

Let's get in trouble. Trouble.

Paul Daly  02:38

All right. All right. All right. It's a good let's just just good. gird yourself

Kyle Mountsier  02:42

everyone not even gonna read this. I'm not even read the

Paul Daly  02:46

reveals. Start over a recent GFK survey reveals that 34% of customers pay more than sticker price you already know we're going in the direction now paid more than sticker price for a new vehicle in December of 2022. A trend that might hurt repeat business for car dealers and automakers. About 27% of the people who paid above sticker said they would never buy that brand. Again. Not from that from that dealership that we're in and 31% of people who paid over sticker would advise others to avoid that specific dealership and 29% plan to never use that dealership for service. Julie keener JFK Senior Vice President of consulting told automotive news on March 15 that paint sticker doesn't okay paying sticker doesn't she's used the word in gender it doesn't. I don't even know what other words you use don't even know what that it does. It doesn't solicit the same backlash as paying above sticker so if you pay sticker price, the second you pay $1 over sticker price. She says there's a much bigger lift in negative feelings. The second you pay $1 over sticker and dealers are really mixed on this we know this. We have a great operators on both sides of this argument. So other few few people quoted in this automotive news article rod Rob shop fixed ops director of Murphy Ford and Chester Pennsylvania thinks it's possible that dealers who charge above sticker might be undercutting their service department data seems to show that Keith Powell owner of yes Chevrolet and yes, Ford near Charleston, West Virginia calls charging over sticker he says it's a bad look and says it's not good for CSI. It's not good for customer retention. He says particularly in a small town, which makes a whole lot of sense, right? Everybody knows and everybody remembers. However one dealer Doug wells, gm of Mercedes Benz of Edison doesn't charge above sticker but says he doubts it will it will really detract from their service department. That kind of makes sense coming from a high line

Kyle Mountsier  04:46

dealer. Right? Yeah, because you only got one everybody services there. That's that's the thing. Right? You know, so

Paul Daly  04:53

this is kind of the clincher though, of all the demographics in the study millennials and people that have a household income of over 150 1000 have paid over sticker most often,

Kyle Mountsier  05:03

which, though, makes a lot of sense. I mean, if you want the vehicle, and you have the resources, supply demand resources, that's, I mean, so that's a good doesn't blow my mind there, and especially all the new money in the millennial kind of generation. But here's the thing people hear basically percentages right around and hovering around the 30% of people that would not do business. Again, this is what's dangerous for me, like, that's a fairly small number out of 100% you'd like but I got 70% left of which that I can convince, to, to buy in, when our numbers as an industry are already so low from a retention perspective, looking at new cars under 30, you know, under and around 30%, and used cars at under 10%, to dealership retention for the next purchase. Cutting out 30% on the top of that is a date proposition for anyone that's looking to drive customer lifecycle reduce cost of acquisition. And, you know, we still have yet to see the fall out of this. I mean, with so many people across the board, kind of like balancing this? Well, we're still probably two, three years from really understanding what it's done to the retention numbers, both on brand and and per dealership. And not just that, but we have a whole new slew of vehicles that's coming out. So we may see these retention numbers balanced by new opportunities to purchase. And

Paul Daly  06:25

that's true. That's a really good insight.

Kyle Mountsier  06:28

It's still it's still yet to be determined. I think the the anecdotal note is that consistently, we've heard from customers and we've seen online and we've seen the reviews, that this hasn't this has a definite significant impact to the quality of customer lifecycle. So we're kind of coming out of this at this point. There's not many dealers that are charging over sticker we're actually seeing like deep discounts similar back to 2018 2019. So it's a little bit of a moot point on on the on the intention of dealers depends on the it depends

Paul Daly  07:00

on the brand. Without because in February, one data point from the article said in February, the average vehicle sold for 102.8% of sticker, which is why it's still it's still it's still there, but obviously it goes brand by brand. Yep. Right. And then then you see, like many brands like Toyota, really doing the deep dig into their data and it was like late last year they were like hey, dealers that charge over sticker double their profits and dealers that charged sticker or below tripled their profits. So Toyota just came out swinging with that either way, like you said, and with that, yeah, we'll see what had time will tell but I was interesting. It's like you had with the the new vehicle product coming to market. And the Evie transition like, there is definitely going to be this. This may be new reason for people to check out a brand that they just because they have the car. Again, you have the product, you have a great product, guess what, you don't have to worry about it. Speaking of not having to worry about it. Oops, wrong. Alright, there's so many fun parts about this. But Domino's Pizza continues to revolutionize the pizza ordering experience with the debut of its first of a kind CarPlay app. The app allows users to order their favorite pizza with a few taps on their vehicles infotainment system. So now you don't need the phone. You can do it right from the CarPlay app of the app is highlighted in the news 32nd spot by the agency work in progress. We'll link it up in the show notes so you can check it out. Domino's, this is cool. They've branded their commitment to letting people order pizza wherever they are. They call it anywhere. Any w a r e like, you know, very clever. very cheeky, right? Um, so basically, you know, people can order on Alexa, Google Home smart TVs, Apple and Android operating systems, you can order on Slack, Twitter, you can text them a pizza emoji, right. It's like so much fun, but now the CarPlay app. And so incent to incentivize people to use this app. They're offering special pricing for people who download the app and like plug in the CarPlay in order from CarPlay thing which is pretty cool in the commercial shows out is the irony, Kyle, the straight irony. And you know where this is going. Domino's just bought a bunch of Chevy bolts, movies to go there and deliver their pizzas. And then GM just announced last week that they're getting rid of CarPlay and I'll tell you that decisions coming back we're gonna say it again. When it calls

Kyle Mountsier  09:23

its way coming back. They're gonna be like scurred Domino's just messed it all Yeah,

Paul Daly  09:29

yeah. They didn't mess it up just r&d department. Listen, you should just run some ideas through this unity will give you the we're getting save you save you the or maybe you just want to keep your PRT busy. I don't know I love. I think this is just indicative though, of more things being built into the ecosystem of what you do in your vehicle and whether that's through CarPlay or through other apps and integrations. Like the car is going to be like we talked about what like zoom cameras and selfie video cameras and you know all this stuff the car Technology is just going to become more immersive.

Kyle Mountsier  10:03

It's the next evolution of what we saw with the phone in the early 2000s. Right? And went from phone to everyday device that operates everything that you touch. And the car is going to go that way connected services, app based services, the ability to do things on the road on the drive, and with remote work becoming, you know, a thing that's more and more acceptable. We're gonna see more and more things connecting you to people and products within cars, and this is and pizzas and people product products. Maybe what else are we doing? Maybe it was connecting to other viewers like who knows maybe it'll connect you to things like something that Starbucks has been doing, we got a little recap on a story ran a couple of weeks ago, Starbucks recently launched its fancy new oil infused olive oil infused coffee, only atto, which is really a full mouthful. Still urging customers toward a unique experience and health benefits. However, some customers are feeling slightly different urge after trying the beverages. It's still Howard Schultz, CEO, former CEO added an interview. It's one of the biggest launches we've had in decades. And it said that it will transform the coffee industry and be a very new profitable addition to the company. One barista posted on Starbucks Reddit its page and here's the kicker that half the team tried it. Speaking of a local Starbucks yesterday, and a few ended up needing to use the restroom if you had no pretty I mean, pretty quickly. Pretty good. So basically, what they're stating is that the combination of caffeine which is a stimulant, and olive oil, which is a relaxant might be responsible for this restroom inducing effect. A high fat content in the drinks could also be contributing to the problem as it can cause cramping, and increased colon mobility. Paul, you ever thought you would say cramping and colon mobility on a podcast

Paul Daly  12:11

about Starbucks? No cramping and mobility? Oh, well, you know, Howard Schultz is just really kind of a genius business person. And his whole his whole path that he's taken the bring Starbucks, like the fact that we have lattes and espresso widely available in the US is because he had this idea like, Hey, we should do this thing over here. And so the olive oil thing, you know, he's gotten on this health kick, he, you know, made friends with olive oil producers and this Mediterranean diet. And he was like, this is going to be my parting shot. Just don't pun intended. Actually. Party shot.

Kyle Mountsier  12:46

Maybe it was more of a weight loss routine and less of health benefits.

Paul Daly  12:53

The high school wrestlers are going

Kyle Mountsier  12:57

by this afternoon. Stop my way.

Paul Daly  13:01

Yeah. So I mean, we'll see. I mean, just like anything, I mean, like there are plenty of dietary things out there, where people just don't eat because they, you know, they encourage behaviors that are unwarranted. And I guess we'll see what happens here. But I mean, it's always I mean, this isn't always the case when you try new things.

Kyle Mountsier  13:20

This results early sometimes looks wrong. Who knows? feels wrong.

Paul Daly  13:23

Smells wrong.

Kyle Mountsier  13:27

That's a fun little recap. We had we had to we had to run it. So

Paul Daly  13:30

Oh, absolutely. Absolutely. So, but it's only Tuesday. We have a lot of work to do this week. Hopefully we got you smiling a little bit. Join us at noon, Eastern today, on LinkedIn, YouTube, wherever the asoto channels just searcher so we'll hang out a little bit. Have some fun

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