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Automotive Marketing Facts: Are Monopolies Good for Dealers?

By January 19, 2016 No Comments
Automotive Marketing Facts

Are Monopolies Good for Dealers?

The practice of insisting a brand’s dealers utilize one website provider gives that provider a monopoly among those dealers. The common justification is an adherence to brand standards, but a multitude of brands are able to uphold brand standards and provide choice. The downside to granting one provider monopoly power is clear. Those who don’t have to earn your business each month don’t try to. In a rapidly evolving environment like website technology, some providers go years without providing any substantial improvement to the dealer’s website. BMW dealers who signed up for a Dealer eProcess website in January of 2015 experienced a plethora of additional features over the year at no additional cost. There are four other providers in the program and we certainly don’t want to lose any of our dealers to them. We invest constantly to develop new improvements and integrate many of those improvements into the program at no additional cost to the dealers. Competition drives that. Monopolistic power does not, and that’s a fact.

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