Latest / Auto Collabs / The Impact of Aligning The Right Inventory With The Right Market with Susanna Cunningham
Transcript
- 0:00Michael Cirillo, what is the first word that comes to your mind right now? Go. Toto. [laughs] [upbeat music] This is Auto Collabs. [laughs] The band or the dog? The band. Why?
- 0:17Because our guest today is- What? It's a guest-... Susannah... relevant thought. That's amazing. Whoa. Okay. And I couldn't stop through, through
- 0:27seeing the calendar invite and seeing her name, Susannah, I couldn't stop singing the song, "Rosanna". "Rosanna". [laughs] And "Rosanna" is a song by Toto. Toto. And she works at Automotive Mastermind, right? What?
- 0:42That's awesome. And they're all big on data, and now all I'm singing is, "All I wanna do when I wake up in the morning is analyze your data, your data." [laughs] "Doo, err." Right? Wow.
- 0:58But it's not Susannah, it's Rosanna. Dude, I love the way you're- And it has to be the first word, and it's Toto... you would almost think that that was in any way pre-rehearsed, and it was not. I can vouch for it. No.
- 1:07Literally- I asked, "So how are we gonna do the intro?"... we hit record, and I asked Michael that question. And tell where I was gonna go. [laughs] Like, I, I am speechless right now.
- 1:15This is un- [laughs] That was unbelievable. Ugh. There is no other way that we can possibly continue this intro without just going- Just go...
- 1:24we really hope that you enjoy this interview, that Cirillo just nailed the setup for. [laughs] "Susannah, Susannah, ba" "Susannah" That's an epic song, by the way. It's a great song.
- 1:39[upbeat music] Susannah, it is such a pleasure to have you with us today. Welcome to Auto Collabs. Gosh, thank you so much for the invite. I appreciate it.
- 1:47All right, so always, always, always wanna give a little background, especially to someone who's kind of new for our content community, right? Which is one of the things that we love.
- 1:56It's like the lifeblood of a soda, is new faces, new opinions, uh, new, new histories. Tell us about how you got into the auto industry.
- 2:03Well, just like everybody else, um, you know, you had a plan A, and the plan A didn't work, right? [laughs] So I, I haven't met anybody in my life where the auto industry has been the plan A.
- 2:13And- Well, maybe if you're, maybe if you're, like, the next generation of a dealer. That's about it. You gotta go, you gotta go meet some of these Northwood students. Mm-hmm. They're, like, pumped. It's true.
- 2:22They're, they're in- All right. Listen, I'm in. I mean, my, my bachelor's degree came from Liberty University, and it's an automotive dealership degree. I know it.
- 2:28Specifically a business degree in automotive dealership, and that was with Hendrix. So that was the only time that it really opened my eyes that it could be a plan A, even though I believe it should be.
- 2:37So, um, counting my gray hairs, I believe it's close to 20 years now in the auto industry. Um, started- Wow... on the retail side. You know, you sell your soul to the devil a little bit. And, um, what really- [laughs]...
- 2:50made me want to leave retail was mostly I was missing choir practice on Thursday nights, and, uh, my mother-in-law was the organist, the pianist for the church, and I was the choir director.
- 3:01So the conversations on Sundays, you know- [laughs]... weren't always that great when you're missing choir practice and you're leading the choir. So that really, um- That's the best why I left retail...
- 3:11[laughs] Never- It's not like, "Well, the hours were getting a little long"- Yeah... or, "You know, I really had a vision." [laughs] It's like, mother-in-law on Sunday was wearing me out. Yeah.
- 3:18[laughs] Throwing shade on Sunday mornings. Right. [laughs] You're showing up for Sunday dinner, and she just look at you, walk through the door. Yeah. "Wow, Susannah" Like, "Pass the potatoes, please." Like, you know?
- 3:28[laughs] "Now sing it." She goes, "Now sing it." [laughs] "Pass the potatoes, please." Um, so yeah, so transition into an opportunity that was also with Cox Automotive.
- 3:37So it was with Manheim Auto Auctions, and gosh, this is probably 2012 range, something like that. So, um, I'm, yeah, very smart most of the time, and this is my business. You know, once I decided that I was go...
- 3:49Like, it changed my life, and it's so easy for it to change others, right? So this is the only business that I'm aware of currently. May, may be a real estate agent.
- 3:59[laughs] But you don't have to be a slave to somebody else's possibilities. You know? Mm. I don't ha- You're not dictating my paycheck at this point. Ooh. What? Right. So
- 4:10transition into Cox Automotive, I wanted to stay in this business. So you know, the industry, this, this is my career. Been here, gonna die here. I don't think I could ever leave to do anything different.
- 4:20The, the conflict is fun. [laughs] Um, so Cox Automotive had a position in my backyard with Manheim Auto Auctions. Love used cars.
- 4:2815 years old, I was at Bel Air Auto Auction buying my first car before I had a driver's license. So lovi- loving it, right? Um, um- Wait, wait, wait, wait, wait, wait, wait, wait. Stop.
- 4:38[laughs] 'Cause, okay, you told, you said at the beginning of this that you, like- [laughs]... accidentally got in auto. You never dreamed of being in auto. But at 15- Uh...
- 4:49what prompted you at 15 years of age to be buying a car at an auto auction? Why did that happen? So when you were looking to buy- 'Cause I feel like we're missing a whole portion.
- 4:57You're trying to get to, like- I feel like you're right... why you're at Manheim. When you're looking to buy- I'm missing something here...
- 5:01upon getting a driver's license, and then you look at the bicycle, and then you think of the possibilities of a driver's license, and then you look back at the bicycle.
- 5:09[laughs] I'm just saying, most everybody probably would have the inclination to go buy something. That's fair. My budget was around $500. So, wow. Back to the bicycle. Right. [laughs] Right?
- 5:23[laughs] I mean, that, that's kinda how it started. Um, gosh, yeah, so there's that. Um, so Manheim Auto Auctions,
- 5:32kind of the funniest thing there, I'm, I'm sure there's Cox Automotive people, so shh, like, don't tell anybody.
- 5:38HR might not be a thing anymore, but on the application, to make it past the screening process to actually get the interview, like, I knew I could do the job, but to get the interview you had to have an associate's degree, and at the time I didn't.
- 5:49So I'm, may have, may have flubbed a little on that resume just to say that I had something that I didn't. Like, it's the car business, right? Like, you know, we all bring a little something extra to the table.
- 6:02[laughs]That was my extra Well, I didn't realize this was a tell-all podcast, but we'll take it. [laughs] Rating- ratings are about to go up. [laughs] Oh, dear. [laughs] Oh, gosh. What else?
- 6:13Tell, tell us the other things that you flubbed. Uh, so that was, that was the biggest fun. I mean, I've made up for it since. That's my master's degree on the wall, so I've made up for it. Like, we're all- Or is it?
- 6:22There you go. There you go. I can print one of those, too. [laughs] Oh, my goodness. Unbelievable. You know, fast-forward, like Automotive Mastermind, I was literally at the last stage of the interview.
- 6:33So this is four, five, six interviews later. I can't remember. And one of the questions was, you know, "Tell me something that you may regret," like, you know, or, or something that you did that maybe was untoward.
- 6:44And I was like, "Oh, Jesus. Here we go. All right. Well, I lied." So that's kind of how I started. I said, "So technically I lied. I got the job, but I lied. Uh, fix my lie. We're, we're all better. We're back." Got it.
- 6:56Nice. So did y- Yeah, red- redemption on the next one. I like it... I mean, my real question is, did you have an associate's degree when you got your bachelor's degree?
- 7:04And did you have a bachelor's degree when you got your master's degree? Yeah. Okay. Yeah. Just for the file to train. I had it all. Right. International business management, automotive dealership management, MBA. Boom.
- 7:12Done. Made up for it in spades. And did you get- Boom... all of those degrees in the time it took to do six interviews? Automotive Mastermind, six interviews.
- 7:22[laughs] Well, the crazy thing with Automotive Mastermind was, I mean, this is my space. I mean, my space. And my LinkedIn was blowing up. You know, Cox Automotive went through several transition periods.
- 7:33Um, through one of those transition periods, I wasn't with Cox Automotive. And, um, it- LinkedIn was blowing up. You know, Carfax, CarGurus, Cars.com. I'm in northern Virginia now.
- 7:44I mean, who wouldn't want somebody with tenured experience on the corporate side in this- Mm-hmm... just geographically- Right there in that area One market, yeah... just lamp packed market. It's, it's, listen- Right...
- 7:53so Automotive Mastermind recruiter kept hitting me up, and I'm like, "Listen, this is my space. I have never heard of you a day in my life. And I pride myself with being an industry expert here. Like, do you sing?
- 8:03Do you dance? What do you do?" So that is, um, how I first got introduced to Automotive Mastermind, was I had a demo. Like, you know, pretend I'm your client and give me a demo of your services.
- 8:14Have you ever had a moment, 'cause, like, y- you, you started with you got in the same way all of us did, which is a, was not our plan A.
- 8:20Do you find yourself, and maybe I'm expos- This is my one thing that I'm sharing that nobody... But, but like- Ooh...
- 8:26sometimes I'll, I'll just be, like, driving and I'll be like, "I never thought I would work in the car business-" [laughs] "... let alone for 30, you know, 20 years." Like, we're in it. This is it.
- 8:38Do you ever have moments like that where you're like, "Oh, dang. I guess my career is in automotive"? Not, not anymore. I mean, you know, the alternative.
- 8:46So where I grew up, you know, low income area, your biggest income is, you know, Tyson's or Perdue chicken processing plants. You've got NASA. You've got school teachers. You have a hospital. You're a nurse.
- 8:56So looking at the options, you know, going to a bank with a business degree, somebody tells you what you're worth. You know, congratulations. This is going to be your chair perpetually, 45 hours a week, your only chair.
- 9:08You get a five-minute, I don't know, smoke break or water cooler gossip. And we think you're worth approximately $50,000 plus your cost of living. I can't imagine a world where that exists. I, I, I can't. Hmm.
- 9:25I mean, gosh, that, that actually hurts my heart to think that people live in environments- Oh, man. I mean, that's-... like that. They're told what they're worth. That's not what you're worth.
- 9:35It's what you're worth to them. To them. It's what you're worth to them. I think, I think that's a good qualifier. Yeah, well, I don't know which one stings more. [laughs] Right. It's true. Yeah.
- 9:42And which one stings more. I, it, it is interesting that, especially in this industry, for the large, a large portion of the industry, right?
- 9:51The, the, it, the portion of the industry that's been in fixed or variable ops or has some sort of sales background or has started something, you have the opportunity to kind of make your own way, and I think it's a really attractive part of our industry.
- 10:07There is, you know, Paul says a lot of times, like, there's, there's no ceiling, but there's also no floor. Like, the ground floor is the ground floor for getting in the industry, and there's no ceiling.
- 10:19Like, you can excel to the nth degree. Um, you know, you, you look at so many people that, you know, similar stories where it's like, you know, low income neighborhood owns 53 dealerships. Yeah. Right?
- 10:35And that's, like, riddled through our industry. It's not like these one-off cases. It's, like, all over the place, right? Immigrant owns dealerships. All of, all of those types of things come to play.
- 10:46So I love, I love the story of that.
- 10:49So I wanna know, when you took that demo of Automotive Mastermind, since it was kind of like a I don't know, you know, who you are or what you're doing, when w- what was the point where you were like, "Huh, this is something I'm interested in"?
- 11:02Was there, like, a, a trigger about the product or the person that you were talking to or anything like that that kind of led you to go, "This is different"? Yeah. No, that's a great question.
- 11:12Um, firstly, it's the data, the power that they have.
- 11:15So you've got this German owners coming to the United States, working for Mercedes-Benz and saying, "This can't be the only way that we can keep our loyalty database."
- 11:28You fast-forward to this garage idea, this crazy garage startup idea, into what it became under IHS. You fast-forward even further to now what it is under S&P.
- 11:38So from a data perspective, number one, the passion these people had to say, "I think there's a better way of doing things," and to run with it, to, to have the courage.
- 11:48Oh, my gosh, the courage it takes to, to have a crazy idea that could shake up the industry, and it did. To have the courage to take a U-Haul van to Las Vegas be- Uh, tell us more about that story real quick.
- 12:00What does that actually mean, take a U-Haul to Las Vegas? The first, um, the first NADAThat, um, our owners participated in. You know, it's, you're number one, you're a garage startup company.
- 12:12You've got a little bit of financial backing, you know, from Mercedes or what have you, however it came to be.
- 12:17They're literally driving a U-Haul cross country to set up for the first NADA with, you know, not much money, not much of a client, not much of a history, and trying to play with the big dogs. The courage.
- 12:29Uh, that, that is- That's cool. That is OG. That's how we started. That's, that's super OG. Like, throw it in the back of the U-Haul, we'll do it ourselves, don't hire anyone. Figure it out.
- 12:37It just, it just blew me away. Everybody cared about your success. And when you're working at a car dealership, that's very hard to find.
- 12:45When you're sitting in retail, it's hard to find managers that believe in you or help push you to what your, your best person could look like. They see something in you you don't see yourselves.
- 12:56At this company, the ego gets set completely aside. And it doesn't matter w- who you are in this company.
- 13:02You can be the IT folks, you can be our product team, you can be in the office in India or the office in Poland, Canada, doesn't matter. There's somebody here to lift you up if you ever trip and fall.
- 13:11And I felt that throughout the entire presentation. And I'm a dork. Um, and I like the data side. I like to tell stories. And this company, I mean, I, I'm in dealerships almost every single day.
- 13:25And now working in the northeast region with dealer groups. And I get to look at the big picture from a data perspective, and roll up my sleeve, and make real recommendations on spending money or driving success.
- 13:37Um, and, and doing things as small as, you know, looking at a 10 car salesperson over at BMW of Starling- Mm... working with them one on one because they weren't getting the help from managers.
- 13:49They just swallowed in the crowd of what a large organization looks like. And doing weekly one to ones with the salesperson, and now she's selling an average of 30 cars a month.
- 13:58Or taking a receptionist at, at an, at a, um, Audi store, and she knew she could be more than a receptionist.
- 14:04Well, with Automotive Mastermind, I can take my time and grow that person to her career where she is today, and it's... No other company gives you that bandwidth. Not any company that I know.
- 14:15I mean, it sounds like you're really into the people side of the business, right?
- 14:19Like, everything you've said kind of from the beginning ties back to the fact, even from your own story, that you're able to help people move forward. And even, like, help dealers help other people.
- 14:32It sounds like that's at the center. So, like, I feel like you need one of these shirts. I might have one of their shirts- Hey... and college pants. Yes.
- 14:39But I'm repres- representing Automotive Mastermind today, so [laughs] This represents all of us. [laughs] This, this is all of us. Yeah. And- That's right.
- 14:47And one of the beauty of this business- Can I ask, just out of curiosity- We get such an awful reputation.
- 14:51But I mean, one of my, my buddies, I don't know if you can see it, but you know, he's got an auto- Does it say fuel and faith? Fuel and faith. An automotive ministry.
- 14:57He's sitting at a car dealership and working through an automotive ministry to help the, the, the community. You know, building backpacks for schools, for underprivileged, um, school systems.
- 15:07And I mean, what an industry. We agree. [laughs] Michael, you were gonna ask a question. Come on now. Preach to the choir. No. I don't wanna ask it anymore. After that one? [laughs] Yeah. How do you top that?
- 15:18That's amazing. No, that's, this, this is good. It's, it's, it- I tend to get on a soapbox, and sometimes I snap and point, so. [laughs] No, I like it. Sometimes you'll wag the finger.
- 15:27So what exactly is that, is, is that company doing? You, you said it was a, a, it's, uh- At a dealership... which, which org is, is backing it?
- 15:35So it's one of my friends, um, that works over for a Lithia store, a BMW store, um, in my backyard. It's, it's actually the larger group is with Lithia.
- 15:42And the whole vision he has is just bringing faith into this environment where, you know, people would rather get a root canal than go buy a car. I mean, we all know that. We've known it for years.
- 15:53But just putting a humanizing spin on this industry and collaborating with like-minded people, and just showing them that there's, there's a better way to be a human. There's a better way to have life.
- 16:03And, you know, they schedule auto rallies to raise money to do trunk or treat and gi- provide back to the community. What do you mean an auto rally? What's an auto rally?
- 16:13So imagine like-minded people, um, that like cars, right? So let's start there. Car people. Car people. And maybe they like to drive fast. You know, maybe they do, maybe they don't.
- 16:24Like, just depends on the kind of rally we're going for. But they actually schedule different- Maybe. You know, like, I don't know. Like, there's different kinds.
- 16:30Like, you know, maybe there's a classic cub- club, maybe there's a Porsche club. But they go, um, you know, essentially collecting.
- 16:37People, like, drive through the different, um, areas of communities, picking up school supplies. Um, donation supplies was most recently.
- 16:44And then, you know, holing up in a parking lot somewhere and stuffing the backpacks together, praying together, and giving it back to the community. I mean. Yeah.
- 16:54These always go, these always go in a direction I didn't expect, these conversations. [laughs] [laughs] Great. What a day. So I know, I know. So obviously we, we talk a lot about the people side of the business.
- 17:07We're all big advocates of the, the community involvement, the focus on people, and we wanna highlight that as much as we can. Let's get practical for a second.
- 17:16Um, you know, you get, you get the opportunity to see a lot of data, and I think that's one advantage that a lot of our industry partners have is that they, a dealer, individual dealer might be limited to their own store, their group, their 20 group, right?
- 17:29Kind of a smaller circle. However, a lot of times industry partners get to be in dozens or see things that are happening in hundreds of stores. So you're kind of in that seat.
- 17:38What do you feel like is one of the biggest opportunities that dealers might not be taking full advantage of, no matter what type of dealer they are? No, that's a great question.
- 17:45And I mean, I'm working on one right now, actually, is a portfolio analysis.
- 17:50Um, which seems very simple when you speak of it, but when you're looking to retire, or to retire, you have a financial advisor, and that advisor sug- makes suggestions on your entire portfolio.
- 18:01Well, as car dealers, you know, sometimes we get stuck and we can't see the forest through the trees, and we forget about all of the resources around us.And about industry pr- uh, professionals that work for the organizations that, that they're paying for, the Carfax's of the world, the Automotive Masterminds, the, uh, you know, their, their OEM reps, et cetera.
- 18:20So the biggest pain point that I'm seeing where, where this b- becomes a helpful solution is, you know, I'm spending the same or more money than I was last year, two years, two months, six months, what have you, past point.
- 18:33Mm-hmm. My sales aren't getting any better, so, you know, my ROI is going down. My new car floor plan- Yeah... is expensive, right? So it's all the same. We're spending more money. We're seeing less results. Why?
- 18:45Or what do I do? And from an analysis perspective, just something as simple as, you know, pulling CRM reports to look at your lead sources.
- 18:55So as an example, this dealership that I'm working with now, I'm actually putting together meeting information. What we looked at is proactive, which is Automotive Mastermind, versus as reactive spend, right?
- 19:06So you've got Carfax, you have CarGurus. Um, this dealer uses AutoTrader and this dealer also uses cars.com. So those four sources.
- 19:17So your, your pain point is new car inventory, new car floor plan, um, not selling as many cars.
- 19:23But when we do an analysis of the leads that are coming into your system, for $20,000 a month or $25,000 a month, which is what the spend is on this bucket of reactive customers,
- 19:3485% of the leads that get entered are pre-owned leads. You're not solving- Right... the new car problem, right? Um, so something as simple as that. Another thing from a data perspective is census. I'm a dork.
- 19:49Genealogy- [laughs]... historical research. I look at census forms back to the early 1800s. This particular dealer, new car problem, new car floor plan cost. He's heavy in Tundras, Sequoias, the, the big money.
- 20:02It's a Toyota store. The big money. But looking at a census information, his largest county in his DMA, firstly, the average age, the median age is 40, and the median household income is 88,000.
- 20:16So any 40-year-old- Ooh... I would, I, I would know would love these cars. But based off of the median income of what you're servicing, they can't afford these cars. They can't buy it. Stuck in the wrong inventory.
- 20:26Right? Yeah. Either, either stuck in the wrong inventory for the DMA or have to start marketing outside of the DMA in order- Bingo... to get those vehicles sold. Yeah. Right.
- 20:33So find, we need to find more expensive, higher hitting zip codes where now we can maybe do a social media conquest campaign, right?
- 20:41Digital audience conquest campaign to different zip codes to get rid of the heaviest things that are eating up your floor plan costs. Mm-hmm. Just stellar. That right there, that's a nugget.
- 20:52Like, I think anybody can take away from... Like, that is, when Paul said get practical, it's like, look at your inventory, look at the target market audience. Like, where are you located?
- 21:02Does that inventory fit the market audience? Can you sell that inventory to them? If yes, press in. If not, go elsewhere. Also, restock based on known, uh, known DMAs. Like, massive insight right there.
- 21:17Suzanna, I just wanna say, like, we went on a journey we didn't, we didn't even think we were gonna go on- [laughs]... during, uh, during this 20 minutes.
- 21:25Found out that you actually were destined for auto because you had a, you were at an auction, uh, you know, way earlier than maybe anybody else in the auto industry has been in.
- 21:35Uh, but we really appreciate you joining us today, giving us a little insight, giving us a little fun, laughing a little bit. Uh, thanks for joining us a lot. No problem. Thank you guys so much for the invite.
- 21:48[upbeat music] Okay, coming out of the episode, Kyle, what is the first word that comes to your mind? [laughs] Data. I don't know. [laughs] Which reminds, Michael- That's normally the word that comes to my mind...
- 22:00which reminds, I mean- It's like, what are you thinking about right now? Data. Fast websites.
- 22:04[laughs] I always joke that, like, fast websites and data, like, it's the meme where, you know, the guy's holding hands with his girlfriend and he looks back and he's looking at the other girl.
- 22:11[laughs] And it's like, for Kyle, it's like data. Data. Fast websites. I mean, like- It's so bad. So bad...
- 22:16te- tell me all, like, tell me there wasn't just all sorts of validation about what, what brought us all together, what brings the ASOTU verse- Right... all together.
- 22:25It's like none of us were, like, none of our first words after being born were, "Sell cars." Like, this was not our plan A. Right. But
- 22:36what keeps her here and what keeps us here is, I mean, she went on to share all these cool examples about how people in our industry
- 22:47go from nothing, acquire something, then use that something as a vehicle to bless others' lives. Yes. And, and I think that's- Come on... the whole reason why all of us are in this industry. Why, why, what holds us in.
- 23:01All, all of us three, absolutely, yes. [laughs] The people who wear these love people more than you love car shirts, yes.
- 23:08And I think we're flushing out from the corners of the industry all these people who are doing this already every day.
- 23:14It's not even like, I wish I could say that, like, what we're doing is inspiring the majority of people to do it, but really what it's doing is drawing people into the center. I, yeah, I think you're right...
- 23:24people who already do it. It's like, it's, it's everybody's been doing it without- Yeah... like, the recognition or without the understanding that the others are out there, right? That there's so many times- Yeah...
- 23:36we run into people and it's like, "Wait, so you're telling me that they also..." And- Also, right. [laughs]... those people, and also them? That's amazing.
- 23:44I thought I was out here on an island trying this thing, and I think that it is. It's this beacon that says, like, here's... And you know what's crazy?
- 23:54You know, Paul, you and I talk about this all the time, and we're gonna, we're gonna run on this probably, this ending for a minute because I'm pumped. But we go through every airport.
- 24:04You wear that shirt and it's like six, seven, eight people- Literally... look at you, and they just kinda, they either, like, nod and they're like, or they're like, "Yeah."
- 24:13And this is a universal thing that I think people have to get called out into and be called to, to say, "Look, you can ex- you can, like, experience this in a network of people that believe the same thing." Mm-hmm. Yeah.
- 24:25And that's what Auto Collabs, that's what More Than Cars, that's what ASOTU Con, that's what being around, uh, these other events, that's what all of the people that we're, that we're trying to call together, including Suzanne, are saying.
- 24:39Like, oh, no, no, no. We're all the others, and we've found each other now. Yes. Amazing. Oh, man. There's no better way to end that. Love it. I think, I think that's- Yay... that's it.
- 24:48We're all fired up, pumped, ready to run through a wall.
- 24:50On behalf of Kyle Mountsier, Michael Cirillo, and myself, and his singing ability, and his ability to bring today's guests and topics into a classic song by the band Toto, thank you for listening to Auto Collabs.
- 25:04Sign 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.
- 25:17If 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.
- 25:23[upbeat music] Welcome to Auto Collabs. [laughs] [laughs] Are we recording? Are we rolling yet?
- 25:42Not yet.