Market Conditions Commentary
 
It’s official, seems impossible, but officially we have the wildest line up of all time
by Robert Hollenshead
Jan 7 2013 8:29PM

It’s official, seems impossible, but officially we have the wildest line up of all time.  The amount of ass kissing we have cumulatively done to pinch this batch of merch for you, the buyer, more than likely will turn up in the Guinness Book of World Records under the heading of “most amount of ass kissing ever recorded to bring the fattest group of cars and trucks ever offered at one time in one place by one seller on one day…ever (and they been keeping records since before Warren Young, founder of Manheim, was in Manheim, that’s a few seconds before God created earth).

Friday is shaping up to be a car show/sale like no other.  We will have 800 units.  There will be more Lexus than any auction in the country…and some amazing merch.  There is 100 Mercedes, every one of them, a trade.  There will be 100 BMWs, spectacular line-up, all trades and no made-up lease return Hogs that flunked the shop. There are 100 Toyotas of every variety, and 80 Honda/Acuras the same…all trades, no lease return lumps.  There are also a nice group of Nissans and Infinitys, once again, every one of them a trade.

There are 250 Domestics, 30 Caddys, 20 Escalades.  15 Yukons/Tahoes, 3 Conversion Vans…and good ones.  Hummers, Vettes, Mustang GTs, Camaros, Ford Trucks that include some whacky diesels and 30 Jeeps of all kinds.   There are a pile of super low-mid mile sellable 2006-09 cars and trucks that you simply can’t find anyplace, we got them.

Lane 24, which will have 550 units, starts at 9AM and will run to 4PM (why are you stuck in the end of the building which is completely over by 11:30 you ask?  I have no answer other than they want me to open my own  auction (and we obviously got the cars to do just that)). 

Lane 23 will BEGIN at 1PM in the afternoon(?) and we will have spectacular domestics in the mid to lower price range (so you ask why would you be stuck at the end of the building where there are no domestic buyers and at a time of the day when all buyers have gone home?  My only answer is because it is completely illogical, unfair and proof they have a reason to see if we can be baited into opening our own auction (and we obviously got the cars to do just that…silly).   

Lane 6 will start at 12:30, after everybody has finished up for the day including re-runs even though if you added up all the cars sold from lane 9 down to lane 1 won’t sell half of what we will sell for the day IN TOTAL.  Unfair  you say?  More like insanity as many of you have stated to me.   Seems as though the largest volume car dealer in the history of the wholesale world would get a bit better numbers after selling more cars than any combination of sellers in auction history.  But, not so.

Now, the undeniable, unbelievable fact that we have no respectable numbers to sell them, impossible as it may seem to anyone that pays attention and is actually in our business, will not stop us from defying logic, Nature,  and the Laws of the Wholesale God that rules our world.  They will all, as in ALL, be sold (as usual).   

The most comical part of the number picture is “rep services” illegal attempt to sell other peoples cars (as illegal as robbing a bank and punishable on each count by a jail term, but condoned for years, stone cold illegal for the repper, the dealer, and the auction that allows it to happen).  You see, in Pennsylvania you must be an employee of the dealership with a salesman’s license to sell a car, wholesale or retail, there is no distinction and no exceptions…it’s the law and always has been, but it’s overlooked  and “reppers” are awarded numbers  with the no skin in the game, 30% selling service, getting ocean front numbers which chews up the best space in the sale.

In my humble opinion this practice has gotten us to where we see it is acceptable to sell a very low, half of what it used to be, conversion rate percentage.  Warren Young wouldn't even give you numbers if your sales rate was 65% let alone 25%. Allowing  this is intravenous injection of cancer into the auction business is terminal.

"Repping" started  when folks that couldn't compete on the street figured they could kiss ass or do tricks with auction personnel to get numbers  and find dealers to “pimp” the numbers to and act like a dealer, it has morphed into institutionalized, acceptable, mediocrity.  Now three generations deep from an auction management standpoint, it is accepted as normal and justifiable to overlook the law and the professionals dedicated to the industry.  

Buying from a rep service is like going to a guy with a pair of scissors that claims  to be a surgeon.  Just can’t make it in school.  Might not even know left from right.  And when he screws up the surgery, cuts off your left nut, not a corn on your left father toe,  he claims innocence based on ignorance, not his fault, don’t look at me.  But the effect of that rubs off on the legitimate surgeon.  Now he has to overcome the stigma of the fake…and in this case the fake is given much better placement in the sale.  How’s that make you feel?  If you don’t have a pucker in your back end, you ain’t never been on the block with your balls on the line.  And you ain’t never answered the silly questions that rep services have invented from a buyer,” what would you really take for that car?”  When the answer is, I don’t know, let me call the owner,  that is an injection of AIDS directly in the neck of the auction.

You don’t get it?  Don’t worry.  You and policy makers at auctions are in the same boat.  You got company.  It doesn't make you bad, I’m sure you are good, just means you don’t get what causes an auction be an auction. It is one of the purest, most beautiful forms of capitalism that has ever been practiced.   In other words It frustrates the dealer that gives us the respect of getting up a 3AM, driving or flying to the sale, stomping the 200 acres to see what we have to offer and then get jerked off in the lane.  Why would dealers repeat that?  The answer is, they won’t.  They don’t need to and can’t afford to. 

We sell, and always have sold,  95% of what we bring. That don’t make us good, but it does mean we do understand what makes an auction tick…and love ever second of it.  The other 5% gets sold on the street that day.  If you ain’t selling in the 90s in my opinion you are looking for too much, don’t understand an auction, or you don’t own the car and there ain’t no pain in a no-sale.  When you own the bitch with your cash (not OPM, other people’s money) it gives you a funny feeling in the middle of your ass, uncomfortable, very uncomfortable, one that you will try harder to get your merch ready better so you don’t experience it again.  It makes you jump out of bed hours before a person with a job.  It causes you to be neurotic about how your cars look, where they are parked and who is climbing in and out of them kicking the rocker panel with their shoes.  It makes you ignore emergency phone calls from loved ones cause you still have cars that got to get corralled, cleaned and primped.  It makes you fly off the handle when it don’t come on the block in order or some nit-wit took it for a spin.  If you haven’t experienced this, you probably don’t understand, however, you might be the person making up the auction lay-out with no understanding of what happens on the parade ground before, or on the block when the hammer hits the podium. 

None of the above happens when a “rep” service goes to the sale.  That is exactly why it is critical for the health of the auction industry that the owner of the unit, skin in game, balls in mouth, is selling the bitch.  The energy level is different.  The testosterone is present.  Mr. Nice guy got left at home.  A car dealer is in the room and SURPRISE, SURPRISE, AN AUCTION BREAKS OUT.

Trying to explain this to a person with a job is like talking Chinese.  And the louder you talk the less they understand.  And in fact because now that you are talking loud makes them mad because you are rude.  No, No, No, not rude, you took it wrong, it’s frustration pouring out of the pours.  When you love the business and you watch it disintegrate in front of your eyes, and are disrespected with simpleton numbers, it is painful so you want to help because it is so simple to fix.  But nobody can listen because they don’t understand the language.  Such a pity.  So simple to fix.  How great it could be again.  

The bull shit that the auction is not going to be here is preached by folks that never were in the business, don’t understand they Dick and Jane fundamentals and as with anything you don’t understand, you fear it and the reaction to fear is rejection and the rejection leads us to “solutions” that are disastrous.  The solutions are guarantees that one after the other, they are nails in the auction coffin.  So sad.  What percentage does any on-line “solution” sell?  If you told the truth and you were looking for venture capital to fund it, they would laugh you straight out of the room, tail correctly placed between legs.

As our history shows as clear as a Swarovski crystal, we sell more units at a higher conversion rate than any tiny seller that sells 5-60 cars, once in a while (but not for 52 weeks a year decade after decade after decade…at the same place…regardless of holidays, weather, political calamities, change of management, heart attacks (transplants), gout attacks, new policies that fall out of the sky without vetting them with the people that make the auction… US, the dealer body… that have made the auction what it is, regardless of any twisted interpretation of facts) that are place in lanes that are oceanfront, while we are placed in industrial wasteland. 

All this off my chest for today, meka noma stecka Jecka we will be fired up and ripping Friday morning, piss pour, pathetic numbers and all.  Numbers that a first day on the job retard with a job repping cars would never except ( Oh, I forgot, they get prime numbers, excuse me.  I was night dreaming)or get offered.

So get comfortable, do your research (as you know we mark all Car Fax issues as a “Caution on Car Fax” on every unit to help you speed up research.  I also group them together to make sure everybody know we ain’t about tricking people and we understand there is an ass for every seat.  We aren’t looking to “rep” chicken shit for chicken salad.  It may be OK for a “rep” service to schmeak somebody and earn a hunge, but I ain’t interested.  All our Caution on Car Fax units hit the block in a group.  They are clearly marked.  I know what it’s like as a new car dealer with the “Car False” issue.  I am not looking to get you fired.  We try to make your job a bit easier.  After all, there is enough trickery in our world as it is, let this be one less possibility.  Make sure the people at home or in the showroom know that you are participating in an Historical event.  Tell them to leave your ass alone. 

Robert Hollenshead

Founder and President

R. Hollenshead Auto Sales Inc.

1373 Lancaster Road - Manheim, PA 17545


12 Readers' Comments

1
Yakov Bandura
Syracuse
NY 13206
12 years ago
Hi Bob,

Yakov from Highline Motor Works. We kicked off the first week of 2013 with a lot of retail sales. Looking forward to this Friday. I hope you do well and a lot of dealers show up for excellent deals on excellent merchandise that can't be found anywhere else. Good luck and we will see you on Simulcast. Thank you

2
John Anderson
Martinsville
IN 46151
12 years ago
Amen Brother!!!!! Preach it Bobby. I will be there brother and I promise I will yell in the showroom, Leave My Ass Alone and then slam my door! Thanks for bringing the Merch to us blokes in the Midwest. Big John

3
Jacob Mccracken
Martinsville
IN 46151
12 years ago
You are CRAZY, and I love it!! Keep doing what your doing Bob regardless of how hard they make it!!

4
Mark Kreider
17545
PA 
12 years ago
As usual you are clear concise and passionate. I always appreciate your opinions and constructive criticisms especially on organizations that are able to impact values of vehicles whether they belong to a retail dealer, wholesale dealer, or a consumer. I invite someone, (anyone) from NAAA, or CarFax to spend a week actually working in our industry to see the destructive impact many of their policies, and incomplete information has on our industry. My only requirement is they have common sense, and are willing to work the hours we work. I can guarantee you in 5 days following one of us around they will have a much better idea of the business then they have now. And yes, I am inviting them to do just that. Let them talk to the consumer who is being told by the sales manager, yeah that I know your car only has a scratch on the bumper, but the Almighty Infallible CarFax says your car was in a front end accident and when I go to sell this car, assuming I can get someone to actually co

5
Mark Kreider
17545
PA 
12 years ago
actually come look at it since they probably won’t, since they have already read the free Carfax I’ve been blackmailed into providing for them on my website.
How about NAAA, well Mr. Jones, NAAA guidelines says that dent on your LR dogleg from your kids bike has compromised the integrity of the “C” pillar resulting in FRAME damage, or be the guy out there at doing his hundredth PSI at 10 pm on sale day with a trucker waiting to load looking and saying hmmmm… that inner fender has a pimple that I am supposed to call frame but I know it’s completely ridiculous, but…

6
Mark Kreider
17545
PA 
12 years ago
OK that has nothing to do with why I am writing today, but it is a discourse that if we actually keep out there may help.

Your commentary on rep services hits home. While it is true that we are not just an
Auction Management Co, but also have 2 retail locations, a service business, and still do wholesale sales (which remains my favorite), it still is inaccurate. Like many of us, I have a dedicated workforce, who all many a decent living, have health ins, and contribute to the success of the company and their community. My responsibility is to maintain the growth of our company ensuring their, as well as my own livelihood in a changing time. Oh yeah, I also have to make sure my Bank doesn’t take my building, my house, my dog, etc.

7
Mark Kreider
17545
PA 
12 years ago
I have always said on sale day we all work together. I know, I know, the auction and some of their imperfect systems (it was hard to be polite) which are being improved, or so I was told in, 2009, they change so sloooww, drive us crazy.
The auction is a collective group of companies whose only goal is to buy and sell cars. Some of these sellers truly suck, and should not be given valuable selling space. The local mini-mart is not going to waste space on a product that that doesn’t sell, the auction shouldn’t either. A lot of us work hard to educate the dealers, and as a result sell a lot of vehicles that strengthens the day for all. Strong sellers helps all of us be successful. Like your company, our company, and others have strengthened the auction business over the years and the auctions have strengthened ours. I plan on continuing to do so.

8
Mark Kreider
17545
PA 
12 years ago
So let me close by saying Isn’t this what drives us crazy about carfax? Your voice is needed since very few others are willing to take the time to articulate the issues, or do so as clearly and passionately as you do. I don’t want your message becoming just a rant or your views become marginalized. Your lucky I type like crap or I may have kept going, it’s great being able to write run on sentences and nobody notices. See ya tomorrow, don’t be late.

Mark Kreider
Manheim Imports
Auction Management LLC
BTW having seen your vision of real solutions to both DMS & CR’s what’s the status?

9
Craig Mcdowell
Temple
PA 19560
12 years ago
Thanks for all the insights you provide here on your blog. I look forward to reading it very much. All the issues you have mentioned over the yers have plagued us as dealers for years. Carfax's shift from trying to get the consumer to buy his own report, to blackmailing the dealers to provide it for them was an ingenious marking move. But its one we as dealers need to fight back. I switched to Autocheck 3 years ago. Not one customer I showed the Autocheck report to was unsatisfied with it and demanded to see a Carfax. Dealers unite and drop them for Autocheck. Making the guys who pay them look like douchebags in their advertising is insulting and demeaning. But dealers still pay them! The repping business drives us crazy too. Never can I get any reasonable number at Manhiem without paying a third party for it. Insane. And most of those cars are being repped by someone else for a reason. No accountability for the JB weld holding the block together. Thank you for sharing your

10
Ray Tabrizi
Hayward
CA 94544
12 years ago
Amazingly to the point, and 100% true, BRAVO Mr. Hollenshead! Here on the west coast at our local Manheim, for the past 25 years we have run a similar operation to yours in a much smaller scale (about 50 cars a week) and us too, have desirable, low mileage, fresh, first time to the market merchandise that we OWN, and our dealer buyers like, trust, and think highly of us. And we too are fed up with the Manheim management catering to the "reppers" (as you put it) and they just don't understand the difference! Oh my god, reading your commentary on this subject was like hearing myself talk in a clear, concise, and eloquent manner which I'm not so capable of doing!
Thank you and I am a big fan of yours. Keep up the energy and the good work. You are an inspiration to us out here.

11
Robert Hollenshead
MANHEIM
PA 17545
12 years ago
Ray,
Thanks for the comment and I know that there are many more people that are in our shoes that don't have a voice. It's why I want to create a wholesale dealer association.

Are you Stanford Auto? I see you are right next door the ManSF. I'd love to speak with you when you have time. I frequently get cars in the Bay area and need a pro to handle them.

12
Ray Tabrizi
Hayward
CA 94544
12 years ago
I will be the first one to join! Yes, I am Stanford Car Co. across the parking lot from MSFB. I would be glad to handle your cars or any other way I could help. Please call or email me anytime. Thank you.
415-385-5658
sfcarguy@gmail.com