Market Conditions Commentary
 
History being MADE
by Robert Hollenshead
Dec 5 2013 4:44PM

So we are doing the three-Pete this week.

First, I have to thank everyone associated with the MADE sale incredibly hosted by Columbus Fair Auto Auction.  What a class group of people.  You have to remember it was the first time we held a MADE sale, at a remote location, using the Universal Condition Report, on AWG technology and we sold to the walls.  I need to thank the dealers that came and dug in as many of the buyers were first time customers to us and we need to thank all the loyal buyers that have been buying from us for decades.  When you think about this, this has never happened before in Auction history.  We never sold from that location, we gave nobody notice, and we sold 215 units, an average sale price of $26,450 per unit, at 96.4% conversion at 102% of national MMR. 

When you consider the statistical facts of the national market, the average conversion rate of a comparable car price unit is well under 50% and when you look at any other sale in the country, these results are well over double the conversion and triple the cost per unit.  I have to thank everyone that worked so hard to bring all the pieces together to make this historically significant event happen. 

Second, the only conclusion that can be drawn is that the technology is well ahead of anything that exists the UCR/pricing is in a class of its own (nothing in the category is warm) and that critical layout and marketing, even on next to no notice, is the way this industry will be moving, like it or not. 

While anemic sale results are today’s accepted  norm, we have proven and will continue to prove that we no longer have to accept what the industry has devolved into.   We have grown to accept as the status quo pathetic conversion rates.  I has caused buyer to look for alternative sources to find merchandise which also convert at horrible rates.  MADE Auctions and remarketing offers a future that is a throwback in time infusing the beauty of the live auction with the best auction technology in the industry both in theory and results.

Third, the combination brings back what we all love about an auction  and maintains the thrill of a balls to the walls auction, everything getting sold.  The emergency of the moment and to use the old saying “the thrill of victory or the agony of defeat” under the hammer.  

We sold another 250 units today in the 17545 and we have another 550 units tomorrow making it a three-peat.  I will sell over 1,000 units this week so we  MADE  history this week.  Thanks to all the dedicated people in our remarketing arm, our technology team, Keith Whann, and mostly to Peter Levy general manager of MADE who worked literally day and night to pull it together.  MADE has many new things rolling out over the next few months.  This event was a small event in the larger picture of what is on the way. 

Last, MADE will be leading the future.   We will not worry about what others are doing, we will not accept mediocrity and the last thing that will be respected is the status quo.

Don’t get mad, get MADE,

Bob


7 Readers' Comments

1
Steve Apter
Export
PA 15632
6 years ago
Congrats Bob for a job well done. The UCR's are AWESOME, and hopefully will be the norm!! The "other" ones just suck!!!! keep up the good work, and here's to our future!!!!!

2
Robert Hollenshead
MANHEIM
PA 17545
6 years ago
Thanks Steve and believe me this is the beginning. This sucker will be better every time you use it. We have a bunch of smart people on this full time both from theory and programming. I am committed to making this the go to product when determining condition...and price.

3
Mark Kreider
17545
PA 
6 years ago
A practical illustration of a phrase Jeff Bezos recently uttered
"COMPLAINING IS NOT A STRATEGY"
Something we all need to remind ourselves of.

4
Jackson Thomas
Logan Ave
NJ 07306
6 years ago
Congrats Bob,
What a great report UCR, it says everything about the car.
AWESOME report by a really well experienced guys, keep it up!

5
Robert Taylor
Feasterville
PA 19053
6 years ago
Bob , If anybody can pull it off it's you . Best of luck. See you on the web.

Robbie

6
-
 -
6 years ago
Bob

I have never seen a group of high quality vehicles offered for sale at really no reserve, you bid you own! Guts does not say what you are about! Wednnesday lineup was incredible and thursday was the same and friday will be no different i'm sure. Hats off to all involved for a tremendous job!
Question
Was the post sale arb percentage at cfaa the same?

7
Robert Hollenshead
MANHEIM
PA 17545
6 years ago
Not sure who I am responding to but as of this morning as I get ready to go to the sale for the three-PETE, zero, not one......none, not one, nada, niet, zippo. MADEis about selling, transparency, providing professionals a platform to transact, being professional, not about preventing a buyer and seller from getting the job done. I hope that answers your question.