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Transcript

Exceed Your Customer's Curiosity with John Foley · Auto Collabs

• 0:00
  Have you ever tried to rhyme anything with EV? [upbeat music] This is Auto Collab. Should we try? No, no, I'm not. Well, I think everybody listening or watching is trying to do that, and it's like, uh, uh, uh, you can't.
• 0:17
  I mean, Foley is- E-... like a stretch. EV. John Foley. He- Easy. EV. You know, I, we're trying to name a puppy that we got. Yeah. [laughs] And EV... We are.
• 0:30
  Literally, we have, we've gotten this, it's a, it's a toy poodle- [laughs]... and he is just tiny, and he looks like a little, I don't know, it just looks like... It doesn't even look real.
• 0:40
  He runs around and you don't hear it. It's like a ghost that runs through the house. But we've had it for a week. You ever seen WALL-E? Eve, right. Eve. [laughs] Eva, right. Eva.
• 0:51
  But, but we're try- we, we literally have had this dog for a week and it doesn't have a name, and maybe EV would be, like, a name for the dog. That'll never sell. No, it'll never stick. It poops carbon. You can't.
• 1:02
  [laughs] It's an ICE vehicle. [laughs] Methane. It's a full ICE vehicle. [laughs] Not really. I mean, like, I've never seen a dog poop less than this one. It's amazing. It's like- Wow... it's not even like a cat.
• 1:13
  It's like less than a cat. We, we once had a- A dribble... we once had a Lhasa Pooh. That's a Lhasa Apso to- toy poodle. That sounds fake. You know. Wow. Lhasa Apso, Lhasa Poos make a little Pooh, though.
• 1:22
  What, what rhymes with that? [laughs] I can't think of a better intro- John Foley... for today's guest. [laughs] Hey, you get what you get on this show, okay? Hey, we never promised anything good.
• 1:34
  [laughs] No, but this is, this is the more...
• 1:39
  I mean, we've talked to John more than once, and every time we talk to John, you realize that there's just something else to learn about the people on the front lines selling EVs specifically, right?
• 1:49
  A lot of dealers are rolling them out, and their learnings are incremental.
• 1:53
  I feel like people like John Foley and Recharge, who are on the ground every day selling o- only EVs, always present something that n- none of us have gotten to yet because they're doing it every day.
• 2:04
  I'm excited to see where he's at, what he's been doing for the last few months since we talked to him last, and I hope you are, too. Hope you enjoy this conversation with John Foley.
• 2:13
  [upbeat music] John Foley, thank you so much for giving us some more of your time. It's good to be with you again. Great to see you guys. All right.
• 2:20
  For the people who may not have seen you in previous content or don't know what you're up to, um, why don't you give us, like, the 30, 60-second primer, that way that'll kick us off into our conversation. Yeah, great.
• 2:32
  Um, I started RechargeD here the, in the past year, and, uh, RechargeD is... We have a, an experience center in Richmond, Virginia, where we sell used, uh, electric vehicles to include plug-in hybrids.
• 2:45
  Um, and we're trying to create an experience that exceeds, you know, matches and exceeds what, uh, buyers are out there looking for. There you go. That's a good summary.
• 2:54
  And- That's, yeah, I feel like you've done that before. [laughs] Here's, this is what I love.
• 2:59
  Actually, I think some, at some point, I'm, we're gonna get Nathan, our producer, we're gonna get him to, like, package up all of the conversations that we've had with you back to, like, a year and a half ago, and, like, maybe we'll find some video of you walking into a SodukoN 2022, whatever that was.
• 3:15
  Yep. And, like, this is actually just gonna become a docuseries of the p- the entrepreneurial path, uh, of a, a person starting an EV-only used car- [laughs]... operation, right? We'll get, we'll get there.
• 3:27
  Why, 'cause you, you said, like, you're creating this experience, and you've said to me you've created an experience center is what you've named your showroom. Experience center. That's right.
• 3:36
  Why did that, why did that become the f- like, the, the thing that you called that? Where did that come from? Well, I think the f- the first thing, like, after I,
• 3:46
  you know, the, the idea that people were looking for some, a, a unique way to buy an electric vehicle that didn't exist today, you know,
• 3:56
  we're on the heels of Vroom shutting down, and there's all sorts of online, you know, retailers that have stood up and, and stood back down. Buyers definitely want a, a unique experience.
• 4:09
  It- it's not just offering electric vehicles. It's not just the fact that we have multiple makes and models available to see that's gonna make somebody choose to buy an electric vehicle from RechargeD.
• 4:21
  And so, like, once, once you wrap your mind around that, then it's like, okay, well, what are people looking for?
• 4:25
  And, you know, how, how can we really rise up and, and create that experience that, that really exceeds even what they're, they're hoping to find? The buyers that come in, are they...
• 4:38
  What percentage of them are first-time EV buyers, and what percentage of them are, like, repeat EV? Yeah, so, um, uh, I'd say that the, the repeat is not more than 10%. Um, and- Gotcha.
• 4:51
  So it's majority people who are just, like, kind of EV curious and saying like, "Hey, I've been hearing this. I've never, never had one, and I'm, I'm want to buy my first EV." You- So it's- Yeah, so-... 90%. Wow.
• 5:04
  And, and we, and we kind of break that, that bucket of EV curious into two buckets.
• 5:08
  So there's like, there's curious where, you know, I, I, I walk into RechargeD and I really am just curious, like, could this work for me? You know, help me understand.
• 5:17
  And then there's EV committed, so, like, they- they're not a repeat buyer. They, they don't understand, or they don't, they have not, you know, they don't have a charger at home yet.
• 5:25
  They haven't been through all that, but they are 100% committed to buying an EV already. Right. They're like- So, like-... "I'm getting, my next vehicle will be an EV." Yep, correct. Correct.
• 5:33
  And that, so that bucket's about split in half. But that's what we see anyway. Wow. Okay. So for the people who come in and are just curious,
• 5:43
  what are the questions they're asking and, and, and, like, what is the response to the way you address them?
• 5:48
  Because I know you, you handle con- consumers in a very special way when they come in, um, your process, you probably get a lot of comments that it's different.
• 5:56
  But I'm sure there are a lot of people and dealers across the country walking inWho, you know, are EV curious, and there's probably a lot of different things, uh, that happen.
• 6:08
  Majority is, in my thought, is probably the salesperson's like, "How can I get them on an ICE vehicle as soon as possible?" [laughs] Right? [laughs] Make, make this easier for me than it should be for them. Yeah.
• 6:20
  Yes, exactly. But you- you- you don't have that option. So, so what does that look like when someone who's EV curious walks in? And- Yeah...
• 6:26
  uh, what are the questions they're asking and how are you kind of starting to step them through, uh, that process? Well, we wanna exceed their curiosity.
• 6:33
  So we wanna learn as much as possible about them and, you know, what is ownership gonna look like for them.
• 6:39
  You- you'd be surprised that, to learn that, like, buyers who come in who are EV curious and, and have spent a little bit of time, y- they could still walk in and be on the wrong vehicle for the way that they're gonna own.
• 6:52
  You know? They're looking at, um, an- an, a Volkswagen e-Golf that's got, like, less than 100 miles of range, and then they start talking to us about their 80-mile commute. And you're like, [laughs]
• 7:03
  you- you realize, like, you gotta get back home, right? Like, I also have these Honda generators that will fit right in the hatchback, right? [laughs] And so we- we, you know, and- and that's the extreme example.
• 7:14
  But, like, we don't want somebody to leave here and then be like, "Oh, why did I do this? And why, why didn't they give me better guidance?"
• 7:20
  And so we really wanna understand, like, you know, how, how it, what's, what's driving gonna look like for this buyer and how can we really help them, you know, find the right vehicle.
• 7:29
  A lot of buyers aren't, aren't even aware how many different makes and models of EVs are out there. So they know Tesla. They've heard plenty about Tesla.
• 7:37
  They pull on the lot here and they're like, "Holy cow, I didn't know Volkswagen and Volvo and, like, all these different EVs existed." I, like,
• 7:48
  there's been three moments today in my life where I'm like, I'm buying a new T-shirt, I'm printing stuff on it. [laughs] And exceeding your q- curiosity- It's a good one. It's a good one.
• 8:00
  That, that just, like, I'm stuck. I basically didn't hear the majority of what you said after that- [laughs]... 'cause I was like, how do I put this, like, in a freaking book or something?
• 8:07
  I'm like, "Exceed your customer's curiosity," and that's how you become a, a guide on the process of purchasing. And that's, like, universal. That doesn't apply-- That applies everywhere.
• 8:21
  How would someone exceed the curiosity of the purchaser in order to guide them along the purchase path and the way they should go? Like, I don't, I don't really have a question. I just, you blew my mind.
• 8:36
  [laughs] I've never heard anyone say that before in my life. I don't know if you've said it before, but I feel like exceed our customer's- Have you said it before?
• 8:45
  I- Is that like one of your, like- I don't know if I've said that. I definitely-... something that just-...
• 8:47
  like, curiosity is very im- like, that is something years ago that I picked up that, you know, uh, but- That should be in your core values. It, it should be- Like, exceeding, exceed our customer's curiosity, right?
• 8:58
  Like, that's huge. I can't get over this. I can't, I'm stuck. You can't. I can't get over it. [laughs] You want max headroom? Gotta reset you. I'm o- I'm, I'm undone.
• 9:09
  Um, what, uh, as you've been along this journey, because this is, it's, it's a landscape that you're really a, a pioneer.
• 9:18
  There's only, like, two or three of people like you in the country that are doing the thing that you're doing. I mean, maybe five if you, if you really go deep, right? Um,
• 9:30
  it's really uncharted territories, and you know all five of them, and I know that you talk to all of them, right? Yeah. Um, but, like, how are you... What, what are the pain points?
• 9:42
  What are the things that have been hard? And how are you dealing with this, like, these massive market swings when it comes to inventory?
• 9:50
  Because that's, that's a dynamic that, like, the franchise dealers are not handling well, and that's your entire business model. Yeah. Yeah.
• 9:59
  So I think if you, if you believe everything that you read, then EVs take a long time to sell.
• 10:05
  And if, if they take a long time to sell and they're having these massive swings, then it's probably difficult to get in bed with the idea that you could be successful selling them and being profitable doing so.
• 10:17
  Absolutely. Um, what I can tell you is that, and, and, you know, again, we haven't been here for a full year, but we are selling cars in under 30 days.
• 10:27
  Um, they move very quickly, which is, you know, just pairing good, you know, operating basics with, um, you know, being prepared to, to sell EVs. And so, um, yeah, I, I, we don't, we don't see that.
• 10:41
  Like, there are certainly cars that-- I mean, we're hyper-aware of what- what's going on and trying to look for signals that there could be shifts in pricing and, and move inventory as quickly as possible.
• 10:53
  Um, but also understand, like, what inventory's more difficult to get, not just the obvious, you know, today, finding a car that qualifies for the tax credit is huge. That's an easy one. Right.
• 11:05
  Um, but, you know, understanding at, at any given point, you know, does Tesla, uh, offer performance inventory, you know, uh, and is that an opportunity?
• 11:15
  Um, and understanding the differences in battery capacity, et cetera. So, um, so yeah, those are, those are, uh, the things that we're keeping, you know, eyes on all the time.
• 11:25
  So Jon, you j- you just said that, like, you all have it dialed in. You have a 30-day turn pretty much.
• 11:32
  Um, you understand even what's gonna happen in the EV market, and you can see the indicators and make good buying decisions, um, good pricing decisions. You have extensive experience, like, with car lots and before that.
• 11:44
  Having been in where a lot of dealers are right now in used car inventory specifically,
• 11:51
  it seems that there's, like, a different set of rules here, so how come you can do it with the EVs and everyone else is having such a hard time? I, I'm not suggesting that it's easy. Uh, and this is 100% of my focus.
• 12:03
  And-I, I can put my-myself in the seat of an operator who's faced with managing regular ICE inventory, um, and perhaps, you know, new cars, both ICE and EVs, and then adding used EVs to the mix is a lot.
• 12:20
  Um, and, and we have the benefit of just focusing solely on that at all, all times. But it's a great opportunity.
• 12:27
  And, you know, it would be hard for me if I was to return to just a more traditional environment, um, and, um, put myself in that used car desk to not, you know, consider adding, um, used EVs to, to, to my portfolio of inventory.
• 12:42
  Because the, the opportunity's great. People are looking for the experience. They are considering, um, you know, lots of dealers when they, when they, you know, look for the right car.
• 12:52
  Um, so the opportunities are out there. I feel like if, if someone was really gonna do that, right, I think back to the early 2000s.
• 13:02
  And back then, basically you had one, maybe two, maybe the larger dealerships had three, four, five people on an internet team, right?
• 13:11
  A lot of that's shifting these days where you have, like, everybody works with everything in the internet because it's just become more widely accepted.
• 13:19
  But I, I feel like there's an opportunity there to basically, like, create a little business within a business because of the focus that it takes.
• 13:26
  Like, you've had, you've created a whole separate business and it's like, "Hey, we might need an EV specialist team," like a manager that deals in EVs specifically, and a team that deals in educating our customers and providing insights on that.
• 13:40
  And maybe there's specific portions of our website that replicate some of the things that you're doing with Recharge because it really is, right now, at least currently where we sit in the market, like, it's a separate business unit.
• 13:52
  I think that's why Tesla succeeds, is because their only business unit is educating and selling on an EV platform, right? It's like what Ford is doing.
• 14:02
  I, I 100% agree, and, and that's the exact approach I would take if it was, if it, if I was in that seat that I was, I, I just described. Um,
• 14:11
  as much as we know about EVs, like, I feel like we're constantly reminded there are, you know, we're, we probably only know a third of what we'd love to know, and we're, we're constantly learning.
• 14:21
  Um, and, and you definitely need somebody, you know, focused on that. What I see, uh, you know, across the landscape are a lot of owners and, you know, uh, dealer principals who are focused on the opportunity.
• 14:33
  They understand that it exists and they want to participate, um, and they're communicating. They're beginning to communicate more and more that they're bought in.
• 14:40
  Like, they do see the used or the EV opportunity in general, however big that might be.
• 14:46
  But I don't think that's trickled down and, and, and I'm basing that on the, the, the experiences that people are telling us when they come in and see us or call us, that they've had out in the market.
• 14:57
  And, um, it's very surprising. Like, it's, it's, it's, it's from places you wouldn't expect. You would expect that the team was 100% dialed in and, and the experiences that are described are 100% not dialed in. So.
• 15:12
  Mm-hmm. Mm-hmm. So what's on the horizon for you? What, where, what's the pivot to next, or what's the next new exciting thing that you're working on?
• 15:18
  Because if I know anything, like, entrepreneurs that get almost a year into things are always thinking about the next thing. [laughs] Uh, what, what are you excited about with Recharge over the next year? Yeah.
• 15:29
  I think as Recharge stands today, we have a lot of opportunity still. And so, you know, we've got some enhancements to recharge.com that are rolling out here in the next two or three weeks that we're excited about.
• 15:42
  Um, but as we've gotten arms around, you know, how to manage this opportunity best, just see lots of possibilities to, to really expand Recharge. Certainly, like, could go stand up.
• 15:55
  People are calling me all the time asking if, you know, I'll sell franchises and let them open up in their town [laughs] because- [laughs]... you know, they, they love EVs and they, and they see the opportunity.
• 16:03
  But, you know, I think there's a lot of ways that, um, I can support dealers to help them, um, you know, make that transition into, you know, i- into the EV world, and there are a lot of these used EVs that are coming to market, so.
• 16:17
  Well, what does that look like? You said ways you can support dealers, right? Like, the one angle is kind of an independent angle where you're opening more stores or selling franchises or all that.
• 16:25
  The other angle is helping existing dealers, uh, that already have an operation up and running get more aligned and be able to sell. Is that something you're talking more about right now?
• 16:34
  Or, like, the thoughts you have there, or is that like- Yeah, I, I am in a-... in the embargo box for the moment. No.
• 16:40
  I'd say pretty, pretty, you know, um, far down the funnel at this point on, you know, exploring what that looks like. I, I'll keep pointing back that, to the, the fact that, like, the experience matters.
• 16:52
  And so, you know, I think I can, you know, build recharge.com to be, like, this fantastic place to find inventory and learn a lot about used EVs.
• 17:02
  Um, and certainly, like, if I'm a dealer and I go, "Man, well, let me list my cars there," if that's helping buyers, it will, but I don't know that they'll buy if the experience doesn't match behind, behind it.
• 17:14
  And so, you know, I think I've got the opportunity to list those cars on the site, but also manage the experience and help dealers move that inventory quickly and profitably, you know, to their benefit, um, but give buyers the experience they're looking for.
• 17:29
  When you really think about, like, how do we accelerate adoption if that opportunity is out there, then, you know, I can't...
• 17:36
  I, I really feel like I can't at this time just trust that everybody will buy in and it's gonna happen, but I can go make it happen, so. Yeah. I think that's the, that's the entrepreneur's mantra right there.
• 17:46
  "I can go make it happen." [laughs] Nailed it. I can't think, I can't think of a better way to end this podcast.
• 17:51
  John, as usual, um, just spending time with you and hearing about your frontline experience, I think serves the entire industry in this brand-new frontier that everyone is kind of being pushed into.
• 18:02
  Like, you have to go across the line. So thanks for being a, a pioneer, uh, being so open-handed with, you know, what you're learning. And, and as always, thanks for being on Auto Collabs. Yeah.
• 18:12
  Thanks for having me, guys. [upbeat music] I, I always had this thing that was like, I- Back when I was selling cars. Back when, back when I- [laughs] It has been a long time since I've sold cars, like, full time.
• 18:26
  That's true. You did- It has. Okay... you did your marketing. Yeah. Okay, yeah. So way back in the day. So way back in the day. Automobiles. [laughs] Back, back in my day- Moto coaches...
• 18:34
  when there was gross profit and things, you know? [laughs] Uh, got 'em. Uh, yeah, not like EVs.
• 18:42
  Uh, I, I always had this conversation with customers, like, "I just wanna find the vehicle that makes most sense to you that fits in your budget."
• 18:48
  And I wish I would've had the words to say, "I wanna be extremely curious about exactly what you need and want." Right?
• 18:58
  That level of genuine intention around a customer and their needs and wants and how they perceive their buying experience, I think everybody can take that one to the bank. Because that's, that's, that's what people want.
• 19:14
  They want a guide that is so curious, that gives them the ability, like, if, if... I, I mean, have you guys ever been, like, scuba diving or down the Grand Canyon or anything like that? Nope. Nope. Okay.
• 19:25
  Well, when you do those types of things- I'm not curious enough about those two things. [laughs]... typically ask a lot of questions about you because they wanna get to know how to interact with you.
• 19:34
  Even, like, white water rafting, like, those people are always asking. If I was gonna do either of those two or either of those three things, specifically the first two, I would want them asking all the questions.
• 19:43
  That's it. I think- Like, if I'm about to go underwater, I want them to know everything about me- But you know, like-... 'cause I don't wanna die that way... cur- curiosity, though.
• 19:49
  There, there's something to this, not just in marketing and human relationships, but, like, this is, curiosity is actually a tactic taught to, like, aristocrats and monarchs and stuff.
• 20:00
  That's why if you ever see footage, and now everyone's gonna do this, if you ever see footage of- [laughs]...
• 20:05
  like, Queen Elizabeth or King Charles, they make statements in the form of curiosity, because it's all about just extracting information out of whoever you're talking to. Like- I gotta understand.
• 20:16
  Do you, can you exa- give us an example of that right now? Yeah, like- I-... go look up King Charles. He will, he will make a, an obvious statement in the form of a curious question. He'll be like- Ah...
• 20:28
  "Oh, yes, white water rafting is where everybody kills themselves, isn't it?" [laughs] You know, it's like- You know what? Actually- [laughs]...
• 20:35
  you think about this, Michael, you had him on your podcast, but I'm thinking of Chris Voss, right? Yeah. Never Split the Difference. Yeah.
• 20:41
  When he, when he says you repeat back the last thing the person said to them, like, with a question mark at the end, like, "Curious?" Yeah. And then they're just like, "Let me give you all the information."
• 20:52
  And you actually, you know who's great to practice this on? Children. Like, practice it- Your wife... on your own children. [laughs] Yeah, 'cause your kids will say stuff to you.
• 20:59
  They'll be like, "Dad, you wanna know what I did at school today?" And you're like, "You did something at school today?" And they're like, "Yeah-" At school? "... let me tell you all about it." At school today?
• 21:06
  Yeah, at school today. Yeah, exactly. And that's exactly the, the curiosity method. I love it. It's great. I love it. Well, I had a ton of fun with this conversation with John Fullio.
• 21:15
  If you did, too, on behalf of Paul Jay Daly, Michael Cirillo, and myself, Kyle Mascia, thanks for joining us here on Auto Collabs. We'll see you next time.
• 21:23
  Sign up for our free and fun-to-read daily email for a free shot of relevant news in automotive, retail, media, and pop culture. You can get it now at asotu.com. That's A-S-O-T-U.com.
• 21:36
  If you love this podcast, please leave us a review and share it with a friend. Thanks again for listening. We'll see you next time.
• 21:42
  [upbeat music] Welcome to Auto Collabs. Welcome to Auto Collabs. [laughs] Why are we recording?
• 21:59
  Are we rolling yet? Not yet.