AADA 2018 Convention Theme

Developing Prosperity in the Age of Automotive Disruption

Disruption is more than just a buzzword. It’s a business model that has reaped billions of dollars for its best practitioners. Uber disrupted taxis, Airbnb disrupted hotels, Bitcoin is attempting to disrupt currency, and let’s not forget one of the trendsetters, carsales.com.au disrupted the newspaper classifieds.

If there’s a product or service for sale or hire that involves a middleman buying from a manufacturer and adding a margin and showroom on the way through, you can bet there’s someone developing an app to disrupt that middleman.

The retail Automotive Industry is a middleman business. We shake hands with the makers and the users. They’re coming for us.

Alternative retail platforms such as Carvana and Drivetime are challenging traditional automotive retailers, attempting to take Dealers out of the picture completely. Giant retailers like Walmart are dipping their toes into our industry.

The new and used car franchise dealership model is under attack, both direct and tangential, from many sides. Some will change the way Dealers do business, others will aim to take that business.

We don’t know exactly how our industry will look in five years’ time, but what we do know is that it will not look the same as it does today.

Electric vehicles might not disrupt the model of how we sell cars, but they could upset our profit mix. Once the internal combustion engine is supplanted and there are fewer moving parts, what will be the role and bottom-line contribution of the service department?

As always, adaptation is the key to survival. Our 4-track program of 13 total workshops, 2 Tuesday Team Events, 1 Feature Session, 1 Special Presentation, featured guests, keynote speakers and policy sessions will explore the new environment Dealers find themselves in and help them draw a map of their new business terrain.

The AADA National Dealer Convention & Expo prides itself on hosting leaders of the industry, which this year includes the Tuesday Team Events conducted by one of the USA’s most successful Dealers, David Kain, and Scott Stein on the Service Department. Corporate leaders Google, Facebook, carsales and Gumtree will run workshops, and keynote speakers headline the Opening Breakfast, and AADA General Session.

The 2018 AADA Convention & Expo program will examine the ways in which disruption works at Operational, and Business levels, from Legal and Taxation to Supply and Profitability and more.

A unique series of plenary sessions and dedicated workshops designed around a series of content tracks aimed at giving dealership personnel specific information and solutions in dealership categories. Titled Operational Disruption, Business Disruption, Managing Prosperity, and Marketing Prosperity, delegates will be able to choose a series of sessions that suit their specific needs.

The other side of disruption

Not all disruption is a threat. Sometimes it is an opportunity. Disruption affects not just the selling of cars, but how we get our message out there as well.

Gone are the days when all we needed to do was buy space in a publication, or 30 seconds on the radio. Now we buy cost-per-thousand viewable impressions. A study Google conducted with Mazda found that low-value buyers cost about $8 per thousand to find. High-value buyers, who are ready to buy, cost around $25 per thousand.

There are 10.1 million people in the Australian car market every day. They are not all looking to buy, of course, but that is our audience – those aged 18 to 54. Of these, 6.2 million, or 61 per cent, are ‘light or unreachable’ via free to air or commercial television. However, 5.3 million – or 86% of these – are regular users of YouTube. So, that is a disruption to where we find – and need to target – our potential customers.

Disruption comes in many forms. It’s not just about people trying to steal our business, it’s about how we conduct our business, how we reach our customers, how we remain relevant in an ever-changing world.