Prices Below MSRP, Genesis Home Energy, Sales People v Sales AI

‍SPEAKERS

Kyle Mountsier, Paul Daly

Paul Daly  00:33

Yo, what's up, it is only Thursday today, we have some fun announcements to make the beginning but we're also going to talk about prices below MSRP Genesis giving the home energy business and salespeople versus sales a high. The people really want to know how you said something super funny. Basically, can I just amuse each other all day long. That's what we actually do.

Kyle Mountsier  00:58

outwit each other,

Paul Daly  00:59

that's all I'm talking about. There's a certain name that people might have that are just a little disappointed these days. Yeah. So

01:07

so it's it's a name that kind of the kind of, if you look at it a little bit too close to yours or your allies or anything like that. at AEI quickly becomes our these all the hours of the world which we have an owl on our team. Yeah, we do. Must feel painful to be like, salespeople. Verse owl, if you read it, right.

Paul Daly  01:30

And the reason it's al already is because they don't want to be Albert. Right, right. Like I want to do I don't want to do Albert, I don't want to do Albert, I want to do so.

Kyle Mountsier  01:40

Do ask me. I'm a I don't know how to do my name.

Paul Daly  01:43

I'm going to all caps go. It's me. It's all caps, all caps alpha,

Kyle Mountsier  01:47

this point for all caps out.

Paul Daly  01:49

Don't confuse me with the AI guy. Hey, we have a fun release. That's coming. Next week 17th. When next week, we are going to release some info, some tickets and some sponsorship prospectus for a soda con. It's been locked and loaded, locked and loaded off. Should

Kyle Mountsier  02:11

we get a sneak peek.

Paul Daly  02:12

There's Oh, there it is. Okay, if you're watching for just listening, you don't see but you're watching. There's the design aesthetic for sort of 2023 our designer Ron who happens to hold the very high position and another company you totally recognize did all of our design last year did it again this year. So to come 2023 collaboration critical is coming in so hot starting next week. It's going to be a Baltimore in the last week of September. So circle that week on your calendar, we need you to join us there it's going to be two full days. With a little evening thing the night before Baltimore, it's so easy to get in and out of and the venue is only like a few miles from the airport. So again, we're trying to give you that like land and be with your people within like less than 10 minutes. Bam. It's good. None of this get off the train, get off the plane, drive an hour and a half in traffic because you're in a major metro like major metros, I grew up in one, but I hate your traffic so bad.

Kyle Mountsier  03:06

So bad. So bad. Look at comments coming in people like Daniel, Greg click is excited. Here we go. Let's go. I can't wait to launch the full. Like the site's getting developed in the background. If you go to khan.com You're just gonna see a little like little stuff. So just hang tight. Oh,

Paul Daly  03:23

but we were talking about the other thing. Oh, we've we've had some conversations with Steve Jobs. No, no. We had conversations with Steve Jobs. I literally right now can not remember the CEO of Apple, Tim Cook. That's fine. So we've been having some conversations with Tim Cook kind of indirectly through the App Store. Because there's going to be I know it's many steps removed. Within within the next month or two. If you search a soda on the App Store, guess what? There's going to be in a soda con app legit app on the Apple Store.

Kyle Mountsier  03:57

All the cool things up in there. Oh, man. Everybody's saying hi. This morning, Jason

Paul Daly  04:01

Harris dropping in what's got Brian in here, Nathaniel? Brian Ortega. We'll get to Brian's to Brian's in one show. We're gonna do that right today. All right. All right. Let's talk about some news. That's what people really want to know, I guess. Okay, okay. For the first time in nearly two years, new vehicle prices have dropped below the MSRP. For the first time in two years, according to Kelley Blue Book data. As consumers have more choice. They're getting better deals they're saying so luxury vehicles continue to go over MSRP non luxury vehicles are now dropping below. The overall balance of all of that means the average price of a new vehicle is now below MSRP. The average transaction price declined 1.1%. From March we're in March to $48,008. From February is $48,558. However, March prices are still 3.8% higher than they were a year ago. So it's

Kyle Mountsier  05:00

just like a roller coaster. Kinga ca. Okay. That's right. The biggest thing I want to go back and watch the monologue from, from the live tonight to understand that little, that little jab, hey, look, everybody in the industry knows that prices are starting to climb, people are getting more aggressive. And if you're paying attention to the news, you know that even eggs dropped 10.9% last month. So everything's a little bit on the decline, pricing side of things. So I think we're going to continue to see that trend. As inventory rises. It'll still be hard to find used cars. But hey, they're below MSRP for the first time. Who would have thought?

Paul Daly  05:38

I know. Yeah, I would have thought which means sentence we've been talking about incentives, right, especially if you're like Atlantis, dealer, inventories ramping up. setups are coming back. We actually asked Chris Christopher singleton on the live tonight show we thought about that, because they have so some slants as dealers. And he had an interesting perspective, because he said, you know, he was I'm an advocate of whatever's good for the consumer. And a time when pricing is so high, if there's now some money on the hood, right, where they can get it get a better deal on a vehicle they've been waiting for and needed. He goes, it's hard to be against that. So I was like, I appreciate that perspective. If that works, it does work. Speaking of things that maybe work, I think so I think it'll work segue I would trust. So yesterday in a press release Genesis, so hyundai genesis introduced its own Tesla inspired home energy solution complete with electric vehicle charging solar panels, and battery energy storage in the home. The all in one basically also offers personalized support, where you have a dedicated home energy advisor that will help get you the right fit and the right system. Here's a quote from the press release. Genesis home is an end to end mobility solution both lowers barriers to Evie adoption, whilst simultaneously providing a seamless solution for our discerning clients to generate. And so that's how they say that our discerning client and stored dependable clean electric power to harness their home energy to charge their electric vehicles and Clark, Claudia Marquez, Chief Operating Officer of Jenna Genesis North America. And then I had to put a little comment out of the comment section of the electric article that said, copy the part where they offer home storage and solar but don't copy the part where they take forever to do the install and have terrible customer service. So obviously, that someone has little experience,

Kyle Mountsier  07:24

a little experience with the Tesla side of things, you know, this is we're gonna see more and more manufacturers go deeper into all of the things that connect to the actual electric vehicle needs. And I think they're gonna, they're gonna mirror Tesla, they're gonna mirror Software as a Service, they're gonna mirror all of these revenue, revenue opportunities. And if it's an indication of what any retailer, anyone that's thinking about a product set past their, their, their primary product set should do is look at the things that are closely aligned with what you're already doing, where you can tap into new revenue opportunities that also serve the customer. And this is, this is one of those examples of it. So when you think about, hey, we got to get this vehicle charged, boom, solar panels, energy storage, very easy walk from a revenue perspective, and it's that like, one place to go for everything, solve all your problems as a consumer, and especially for a brand like Genesis that's in the luxury segment. That's what those customers expect. So when you're thinking luxury, when you're thinking consumer experience, thinking adjacent revenue opportunities to serve customers, is a really, really solid mindset.

Paul Daly  08:36

You know, we were in that same topic of like, how can you help solve the whole ecosystem issue, or at least serve the customer through this transition? And like, if you have questions, you know, we've seen dealers who actually stock like just some home charging outlets, right, like some of those 240 volt, you know, so they can see it in place, Hey, you want this installed in your home, have partnerships with local installers, so then you can connect the purchaser with a home energy advisor or even just like get an electrician who you have a relationship with. And I think that that's a really basic level, anyone who sells an Eevee should do that, right? Like, have a little setup in your show where we're like, this is what it looks like in your house. This is how you plug it in. This happens to be on

Kyle Mountsier  09:18

a Sunday, where you bring in an electrician, you bring in a home energy adviser, you bring in the OEM, you bring in some cookies, right? Bring in a little cookie little, little, little thing, have a little event around it and start creating be be the resource, right?

Paul Daly  09:34

We're gonna say we're gonna keep saying that, I mean, obviously Genesis, taking a big swing and look, Hyundai is one of the largest companies in the world if you're not just the auto manufacturer, but like the industrial and the development side, I trust that they're going to do a good job with this. But the reality is like this kind of system is going to cost like 150 grand, right? You need the solar panels and you need right so limited market availability, you know, but it makes it a dream markets. High income. Yeah, for sure. But I mean, like the others stuff like getting the game. There's literally no excuse for any dealer who sells an Eevee to not at least be in the entry level game. Yep, no excuse. Well, I'm just gonna say speaking no excuses speaking at the entry level.

Kyle Mountsier  10:11

Oh, okay,

Paul Daly  10:12

well, no, that was that was a much better, much better one.

Kyle Mountsier  10:17

Hey as the likely bad bad Epic Battle of humans versus owl? I mean, I know we're going one company outsources human sales reps for retail products, feel the Conversation rate, check this out ever I'm a slow this down the conversion ratio conversion version Sorry, sorry, when someone talks to a human as opposed to an AI rises from one to 3% to 10 to 25%. That's

Paul Daly  10:48

the major difference.

Kyle Mountsier  10:50

major difference when you like right now if Matt Lasher listen to this episode he's doing like running circles in his home. Basically, what happens from field is when a customer asks a question. The rep featured in the art article, Brooklyn Castro says she takes one on one video calls from her home and make sure the difference is known right away. She says I have to reiterate, hey, I'm a human. My name is Brooklyn, and I am real. Says says Brooklyn feel is training boss to replace humans with their their co founder and chief executive. Basically like they're they're trying to battle this, like how much human input? How much AI input? Do we have it with our communication with our customers? So it's man, it's a battle, you know,

Paul Daly  11:42

he'll feel has a company where they're like, hey, the human element matters. Yep. And the data says it matters a lot like some of the examples in this article, you should go check it out. Like the full article, it talks about like selling one of the things was like, like a baby monitor. Right? And just like sick of the empathy when you're like, oh, is this monitor going to be good? Like, because it basically monitors the baby's breathing and like whether they rolled over or not all that things do that. And you just think of the empathy of a human and talk you through the process. even think about it from the car business, right? There is a level of like, I don't want a bot. And the further you go in a conversation literally the more but like it typically becomes, yeah, right? But when there's

Kyle Mountsier  12:20

recognize, like, hey, this person isn't actually listening, or this thing isn't actually listening. Especially if there's any sort of like human context that it asks understand.

Paul Daly  12:30

That's, that's legit. Right? Right. Especially on a video call. I mean, like, how do you even do that? And so that the company feel is tell Brian or tell you what the comment owl or how,

Kyle Mountsier  12:41

ah, see what he did.

Paul Daly  12:44

There. So basically, if you think about the company is actually still trying to train AI bots and says it would be stupid to keep paying humans. But an interesting turn. So there's a group of researchers or researchers that I'm actually Steve Wozniak, speaking of Apple executives, co founder of Apple, they're asking questions, should we automate away all the jobs even including the fulfilling ones? I was like, that's a pretty awesome question to ask as humans, right, because it's not just all about efficiency. It's about fulfillment. Like we would all agree that in order to thrive in a life, as a human, it needs to experience a sense of fulfillment and like work is good for people. It is like you look at what happens when someone doesn't have work. Right? And they get depressed, and they got their life starts to fall apart, even even if they have like a full life of leisure. Like people who pursue that often end up very sad.

Kyle Mountsier  13:38

Yep. Right. Because I think it's interesting that it's not just these rush these researchers, but like, they're there as as early as late last week, a bunch of tech entrepreneurs, including people like Elon Musk have said, hey, look, we got to throw some reins on this AI movement. It was part of inventing chat GPT Zara, open AI are major investor right. Yeah. And early and right now in that company. So, you know, I think that there's there's just a healthy level of discourse on how much or how little to integrate this the CEO of, of open AI, the chat GPT founder, Sam Altman, basically said, Hey, I recognize the potential of it to impact careers. And then he came out with kind of an interesting kind of, hey, let's go this way. Do you want to suggest government funded universal basic income as a possible solution, which is, you

Paul Daly  14:34

know, back to my last point, yeah, exactly. Right. It's, it's why communism doesn't work. We're gonna get in so much trouble this podcast, but

Kyle Mountsier  14:44

we've been full and pulled Trump troublemaker this week. We've been pulling all stops if I'm thinking

Paul Daly  14:49

two ditches a day and you're digging one ditch a day, and we're getting the same amount of money. Are you going to ever aspire to dig ditches a day? No, my two ditches got us. I'd like terrible I'm gonna start digging either way, but it's a major conversation while

Kyle Mountsier  15:03

but like, we, my, my family and I watched the movie Wally. And I know that this is like an, I felt the exact same thing. I was like, This is how it's like this, this is the question. Like, that's the, that's the, like, long example of this, right? If you've ever seen the movie, and people just kind of like riding around on carts with screens in front of their faces and robots too, and everything, that's a very long, like, far pushed out example. Sure, but the thought remains, and I think that these companies are starting to try and grab, you know, wrestle with the idea of how much AI interaction and, and communication or even like replacement of human jobs is healthy, and how much human job nature do we need in order to be successful, help people feel feel fulfilled, because the other end of that is feeling fulfilled, also leads to purchasing behavior on the other side. So it's, it's, it's not just the job, retail side of commerce.

Paul Daly  16:09

And so, this is this, this story, actually, surprisingly, can get very, very deep in the practical and philosophical pursuits of all humankind, which is the only really thing we're talking about all humankind here on the troublemaker out to close that article out Brittany R Arnold, another rep for that company feel she sells fashion and home goods for retail clients. And she says humans crave other humans. And I think that interaction is always going to be something that AI will never come close to. I helped a lady mourn the death of her service dog the other day. So I mean, and you think of all the stories that walk through a dealership door on a regular basis, or walk into the finance office on a regular basis, our sequel don't need the direct answer. And that's it. They need compassion. They need empathy, and they need somebody who puts them in a spot that they can actually succeed, not just taillights over the curb, right, like for that point forward, and that's what I'm really doing in this industry. And that's what we're doing in this industry. That's why we're making a TV series called more than cars because it's so much more than cars. Get out there. Do more than cars today, and we'll see you around tomorrow.

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