Tesla's Unfair Advantage (Service Drive Revolution)

YouTube episode (Service Drive Revolution) hosted by Chris Collins with Mario (published Jan 6, 2020). The hosts answer audience service-advisor questions (pay plans, common advisor mistakes, customer interactions, CSI importance) and then analyze Tesla’s "unfair advantages": direct-to-consumer sales (bypassing franchise dealer margins and flooring), over-the-air software updates and in-car purchases, superior battery manufacturing and scale (Gigafactories, China/US/Germany), data advantage from years of real-world autonomous-driving telemetry, aggressive culture and product expansion (trucks/semis/robotaxis). They argue new-car sales decline benefits service-focused businesses and emphasize dealers should focus on service, technician capability, and mining their database.
Chapters
Foreign.
Welcome, everybody, to Service Drive Revolution. I hope you're having a great day today. I. I want to talk about something that is very, very frustrating to me, and it's happened to me twice. But first of all, say hello to my trusty sidekick here, Mario.
Hey, everybody. Happy to be here.
Two times. So it just happened with a BMW person that said we're number one in the country by a mile. We're not going to do incentives to try to beat Mercedes like we have in years past.
What do you think about that statement?
I just think they're looking for excuses of why not to be number one.
No, they said they are number one in every category. They're not. They're saying that we're the number one luxury car.
In America.
I'm a little stumped over that one.
Me too. I said, so what about Tesla? And they said, oh, Tesla doesn't count. And I was like, wait, the people buying in Tesla would have bought another car if they weren't buying a Tesla. But how does Tesla not count?
Interesting. Has four wheels.
Same thing. I don't. Four or five years ago. Now I can't even remember because I put it out of my mind the last time I will ever speak at nada. They.
When you speak there, they make you do your. Whatever you're gonna do for a committee beforehand and they critique it. And they said two things. They said, we want you to take out calling your ex wife Satan.
In the pet the dog story. And we don't want you to talk about Tesla because I had this story about my doctor and Tesla. And I was like, well, why don't you want me to. Why don't you want me to talk about Tesla? They're like, well, it's not a popular subject with the dealers. And I'm like, well, my job is to talk about the truth, and it's the elephant in the room. No, it's just not a popular subject. We don't, you know, we don't want you to talk about it.
So now they're controlling your speech.
Not only that, they're just like, I don't understand why nobody wants to talk about Tesla. Like, the thing that you have to understand is Tesla has a huge unfair advantage over everybody. And they are. Every year they're getting a mile ahead. Like, they're so far ahead right now. Nobody understands. Elon Musk said in an interview not that long ago, he says, I'm so far ahead, and nobody even, like, understands how far ahead I am. So I want to talk about that today. I want you to understand why Tesla has an unfair advantage to, to everybody else. And I want to talk about it. You know the thing that's always odd to me, like people say.
You shouldn't talk about religion or politics. And I'm like, I love to talk about religion and politics. I'm like, you know why? Because you could change my mind.
Right.
The people that, that are just blindly following something, like they believe everything on Fox News is the truth and they're blindly following that, you probably shouldn't talk politics with them. But if they're normal people and you're trying to have a conversation about facts and a little bit of a debate, and hopefully in a conversation you learn something, right? You could change my mind. I'm not so stuck on anything that you couldn't change my mind. So I'm an odd duck that way. I always think it's funny when people believe things that, you know, they hear on TV or they read somewhere and they've never double checked it. They never have, you know, anything. But like, for example, my mom, when Obama was president, used to watch the 700 Club all the time and Fox News too. And so she tells me, you know, I don't know all this stuff about how Obama and Muslims are going to take over or something, and that Obama never wears the American flag on his suit like other presidents. And so when she said that to me and you know, Pat Robertson on the 700 Club, that guy literally should be persecuted for some of the crazy things that he says about people. Like, it's nuts. But I googled it and it's like there's tons of pictures of him and it wasn't, he was a secret Muslim. And once again, I'm not debating whether he's a good president or not. But let's not make stuff up, right?
Like, and people believe it and they run off.
Yeah. And then they're like, he's a Muslim and there he's gonna let them all, you know, let the Muslims take over all this weird stuff. And it's all fake, you know, fake news. But would easily just Google and you can figure out, right. What's really going on, you know? Yeah, it's, it's crazy. So in the Tesla conversation, I like to have this conversation, some of you dealers listening to this or watching this are going to be irritated by it. And I would tell you you shouldn't be. It's the truth. And the sooner we get hip to it and the sooner we start accepting the truth, the quicker we're going to Recover and get ahead of it. But let's not, let's not pretend we're Blockbuster Video and we're just going to crawl on a horse.
We're still in denial. Yeah, still in denial.
It's not part. And so the funny thing is, I've been predicting the Tesla thing, but for a long time. The thing that I would tell people is what you're not taking into consideration is new car sales are going to drop. And everybody agreed with that and they knew. And then I've said, and you don't understand that Tesla and these other companies are gonna come in and get part of the market share of the numbers that have dropped.
Yeah.
And so you're, you know, it's not like they're selling cars in addition to what we were normally selling. So the new car sales are dropping and Tesla's gaining market share inside of that smaller pool.
Right. It's a lost. Lost for them. Yeah, we consider it.
Right. But nobody kind of like looks at it that way. It's weird. So we're going to talk about Tesla's unfair advantage and some really great questions. So let's start with the questions and then we'll get to Tesla's unfair advantage.
Let me put on my glasses. I can't see anymore.
Looking glasses.
Hey, by the way, you know who I had dinner with the other night?
Who's that?
G Man.
G Man. How's he doing?
So I asked. He said, you know people. He said something funny.
Shout out to G Man.
He went into.
Some place and the guy was like, yeah, but how's your cholesterol? Like, people say that to him all the time. And so I was like, yeah, well, how is your cholesterol? And it ends up that they finally put him on medication. So his cholesterol is 150 now, no matter. He could, he could inject milkshakes into his arm. And so, I mean, there's two parts of that, right? Is one is it's, I guess it's healthier in a way, but you're cheating in a sense. Well, you're trying to use medicine to.
Offset the body.
Telling you offset the idea that you should just eat better, I guess. But it is like he wasn't gonna change away.
You know, I know this is off subject, but when we were talking about, you know, when I was doing research and eating and everything, one of the things they said is condiments. A lot of us don't consider how much condiment we use for our meals. And they said, so condiments like mustard, ketchup, which is kryptonite. Right. Has a lot of sugar and we overuse a lot of condiments. And that might be, you know, one of the reasons his collection.
What does it say about hot sauce?
I don't think hot sauce was a big major.
No. Because it's hot sauce.
Yeah. And how much do you really put on there?
Right.
So I don't think it was big.
If you're a Mexican.
Like mayonnaise and all that.
Yeah.
But I don't think it was as effective to the other condiments we use.
So that's it. G man. If you just want to cut out the ketchup and the carne asada fries.
Yeah, that definitely helps. But it's so good.
Linda Lard Lillard. Lillard. And I'm guessing she's from Texas because her email is something Texas. I'm new to your YouTube channel and service advising, but using your channel to learn as much as possible in conjunction with my training I'm going through at the dealership. My main concern and what I seem to not be able to find within all of your videos is the most common mechanical issues or problems that most come up for service advisors. Example, a guy came in the other day with severe tire wear on two front tires. It was an all wheel drive Subaru, which I would have no clue that if you had an all wheel drive, you should always replace all four at the same time. She means all four tires at the same time. I know there's an infinite number of answers to this, but as a novice service advisor with zero mechanical experience, what are some of the most general basic questions you get most often and answer so much? So, Lindy, it's a great question and I understand the spirit behind the question, but it's the wrong question because what you want to understand is your role as a service advisor is not to diagnose anything. It's not. You don't need to diagnose tire rotations. In the end, what your role is is to make friends with the customer, make the customer really comfortable so the customer can explain their concerns with the car. You can document that and then let the technician do the work. You got to think of yourself this way. The technician's the doctor and you're the nurse receptionist. Your job is not to diagnose anything. Your job is to make them feel comfortable to. To get them to fill out the paperwork, get all the information, and tee up the doctor for success. Right. So the only variable in this maybe would be that you could Recommend maintenance when maintenance is due and understand that. But you do not need to know anything about the car as much as you need to be really, really good with connecting with people. Spend your time connecting with customers on a deeper level. Spend. Spend your time making friends. The car is a commodity. Anybody can service a Subaru. In fact, I don't know if you know this stat, but 70% of clients end up going to independent shops after their warranty is up. So you're. You're losing more customers because we think the car is special when it's not. It's a commodity. The car is an excuse to make friends with the customer. So Subaru customers, and I know this because I was a Subaru. Service advisor are the most interesting characters out there as far as car brands go. They're outdoors, they're mountain biking, they're. They're freaks, they're crazy. And focus on that. Focus on making friends with them, getting to know them. Asking four or five questions. Where are you going today? What do you do? Where do you drive your Subaru? What? Your kids, your dogs, your hobbies?
Emotional work.
Yep. Emotional connection. And don't worry about diagnosing the car. The reason why in service advisor training, all that isn't in there is because you said it. There's a million different.
Things or variables that could happen. And your job is to be a customer collector, connect and then make the process easier. Back in the early days of our industry, customers pulled right in the shop and talked directly to the technician. That ended up being a distraction because the technicians were doing all kinds of other things and not actually just working on cars. Your job is to make it like you're the communication between, but you make the follow up better. You make the customers comfortable. You get them talking and opening up. Think about, if I get you opening up about your personal life and then I ask you about a rattle, I'm going to get a much better description than if you're nervous and it's all a transaction and, and I'm running you in and out like a number. Right. So go on. Test drives confirm what the customer's saying. Really, really put your hands on it. But you don't need to know how to fix it. You don't need to know how to diagnose anything. Let the technicians do that. And over time, you're gonna learn. Cause you're gonna see certain things over and over again. But, I mean, I remember when I was a service advisor because I was making so much money and doing so well. One of the Volkswagen Technicians. His name was Shane. He was. He was a prick, that kid. And I remember one day, bro, he. He was doing a recall on a Jetta and he didn't disconnect the battery and he blew the airbag. And I thought it was the greatest thing. He broke the windshield on the car. Because he didn't do the job right.
Yeah.
Because he was such a jerk. But anyways, he calls me out and all the Volkswagen techs, and I don't know, there were like 12 of them, and there's. He's got this, like, wood box, this, like, wood crate, and there's like a disc on it. And he calls everybody around, all the techs who are around, and he's like. And I didn't know what I was being set up for. He's like, so what is that? And I was like, I think I said a brake rotor. He goes, oh, my God. You can't be a service advisor. You don't know the difference between a brake rotor and a clutch disc. And he goes to my boss and says he can't write service. He does. And my boss is like, his job's not to know the difference. That's your job. His job is to make friends. The reason why he sells so much is because people trust him and like him. It has nothing to do with that. And I don't know, whenever I had a technician recommend something or whatever, I just go out and I'd say, could you explain it to me? Could you show me so I would understand? And that. And that's how I learned. So just, you know, Lindy, make friends with customers, get them to trust you. Be in it, you know, an investigative reporter and get all the information. But you don't need. You don't need to know all that. Don't diagnose cars. One last thing with that is sometimes the worst advisors are advisors that used to be techs.
Yeah, I see that because quite a bit.
They know everything they can diagnose. They never. We never make any money because they'll just diagnose it in the drive. But they didn't spend really time diagnosing. So a third of the time they're wrong.
Right. And then to discredit the work that the technician is doing the back and they want to discount. It can go wrong in so many ways.
So. Good question, though. We'll send you. We will email you and get your info and we will send you some swag.
Swag bag.
And I would suggest reading the Millionaire Service Advisor because it'll help you with Some of that. There's some good stories and analogies in there for you on how to be a service advisor. Next question is.
From Wants to be kept anon okay. Which I'm guessing is anonymous. Hey Chris, I've been listening to your podcast for some time now and on my second time through all of them I came across the podcast talking about Advisor pay plans 12-05-2017. That was a long time ago. Yeah. Recently my store Subaru, one of the busiest in the group, has adjusted all the advisor pay plans. Originally we were getting paid off of parts and labor and were based off of gross profit tiers 7 to 8.5%. As see already I'm lost. Are you paid off of sales or gross? How would you read that?
I'm going to assume he's getting paid off of gross, but it was a little confusing.
As a department we are making an average of 225 to 250k per month out of four advisors that was that. Parts and labor.
Four advisors and each individual was making 6 to 8k monthly. Everything was smooth and profits were growing. Now they have adjusted our pay plan to get paid strictly off of net promoter score which is CSI right?
Yep.
Basing a stranger's opinion on a survey as to what we get paid percentage wise the percentages are still the same but the question that is asked on the surveys are based off of our experience. Would you recommend blank 10 out of 10 to family and friends? A score from either 0 to 8 or 9 to 10 is a 10 seeing as we are still grossing the exact same but but a lot. A lot of advisors have seen a fifteen hundred dollar cut out of their pay due to this pay plan. Seeing as to what your thoughts are, I feel this is an option to where we still making a profit but they possibly don't have to pay us as much to help boost their profits. As a manager group it makes us advisors not want to sell as much and focus more on customer retention and making sure they are completely satisfied. In the end we have to always take care of customers. For a question to a random stranger to based on pay to fill. It's not fair and that's what it says. So a little little trouble with the.
English language and I'm with that too. You read some of my writing and comes back to that.
So is this you? Are you anonymous?
No, no. The one thing that stuck out so much to me definitely if you look at it through a different lens is they're assuming the customer is a complete stranger because they're leaving him as a complete stranger.
That's your fault.
This is a layer. As a stranger, it is a layup. You're gonna give me more money if I can connect with customers. And the amount of money is dictated by how much you can sell. Think about that. Make a friend out there. Get that customer to know you on a deeper emotional level and vice versa because in return you get the better csi. The customer trusts you, you sell more and you have the highest tier out there. This is a layup, guys. We just have to slow down the process and make friends. That's simple. It's a layup.
Well said. Okay, and then.
Let'S go outside of our little selfish shell as an advisor, like you know that saying to the, to the man with the hammer, the world is a nail.
Yeah.
So to an advisor, the world is just everything that we do as an advisor. But step back for a second and why is CSI so important to a Subaru dealer?
It dictates how we're taking care of our customers.
Yeah, but what else, what do the manufacturers do?
Pay a lot of good money for that.
So there's bonuses involved. What else do you do? Manufacturers want to give more points to dealers that can't get CSI or that can. So if a group wants to buy more Subaru dealerships or any other dealerships for that point, it's kind of like their credit score with the manufacturer. So there's tons of money involved. Right. And then you're not allowed to buy other dealerships if you don't have good csi. Right. And the.
You know, kind of the, the third one is that they sometimes don't give you cars. So you're a dealership, you want the good cars. Like I don't know what the good car is with Subaru right now, but you want a bunch of turbo Imprezas or whatever they're selling, that's the hot car. You're not going to get a bunch of those if you're, if you don't have that relationship with the manufacturer and you're not in good standing with the manufacturer. So we got to step way back from just being an advisor and being so selfish. And we got to, we got to understand that it's a big deal. It's a big deal to the dealership and that's what keeps us employed, that these strangers opinion is that they like us. And we, let's just talk about the things as an advisor we can control. So can we control how we answer the phone?
Yes.
Can we answer the phone with a good Attitude or a bad attitude? Can we be in a hurry or take our time? Can we show empathy or not? Not care? We can. When a customer comes in, can we let the customer wander around and wonder where to go and who's going to help them? Or can we run out to a car and welcome, how are you doing today? And connect with them and ask them about their kids and their work or whatever it is that matters and really, genuinely make friends with the customer. Do we control that? As advisor, we do. Now as advisors, can we follow up with customers beyond what they expect? Could we call them before they call us? Do we control that or somebody else?
Well, where I work at is what they're going to start with. But 100. You can control it.
Okay, so if we have a working phone, we can follow up. We could email, text, whatever. We could follow up with customers and exceed their expectations, right? Could we? Could we? Could, could we. Could we be better than any other advisor that's ever helped them? Could we greet them, follow up, check history, care about them? Could we treat them Now, I know this is crazy. It's crazy. I've been accused of being crazy before. Could we treat them like family?
Yes.
So we control that. We're not victims. And so if we did all that stuff and they showed up to pick up the car and we were there and we made them feel great and we said, hey, please come back and see me. Like, the thing I used to do is like, here's my card. And please, if anything happens or you need anything, I want to be your guy in the car business. Please call me for anything. And people would call me because I was sincere and I really did want to be their car guy. People would call me and say, hey, Kris, I'm thinking about buying a new car. What do you think about the new legacy or whatever it is? And I had a lot of influence on what cars they bought. And I would tell them the truth. I would say, hey, there's a lot of issues with that one. But, you know, this one is the good one. And so it's all, we're not victims here. Our role as advisors is to do that. And so really the question here, Anonymous, is how much of a pro are you? How much do you care about being great at what you do? How much do you care about the dealership you work for? Or are you just selfish and it's all about you? Because it's really, really odd to me that you would describe a customer as a complete stranger. It's in your control that they would be a really close friend. Right. I mean I, I was always friends with my, with my clients. Like, I always thought that they were just like me. They had, they had problems just like me. And you know, I don't know, it's a we, you, your, your, your angle on all this is, is very self serving but very lonely. Like you're gonna put yourself in a trap. You can have the best CSI in the country if you wanted to by just connecting with customers. So it's important to the dealership and it's a huge deal.
Yeah. I mean part of it they can get from our online training on a couple steps in a system that we've not only saved hundreds of, I wouldn't even say hundreds, but thousands of advisors that I personally know. Some save their jobs because they were on the brink of getting fired by having great sales, but poor csi and by them just following the steps that we have, they managed to keep their job and really have a very great CSI score. From here on out, they have to.
Go hand in hand.
Yep.
You can't have high sales without happy customers. Then you're, then you're pushing people too far. You're doing things that you shouldn't do. If a customer doesn't feel value at the end of the day, feels taken advantage of, there's, it's too much chaos. The, the relationship is too valuable.
Right.
With the customer to do that. So they, they go hand in hand.
Oh yeah. To me I agree.
Tesla's unfair advantage. Mario, what's that?
I don't believe it.
You don't?
No.
Okay, let me tell you about it then. I'm glad you don't believe it. The first thing that Tesla did that was an unfair advantage is they went direct to consumer. So in North America, in most states, you had to sell through a dealer. Right. A franchise dealer. Except for one state, New York, I know in Manhattan, a lot of the dealerships are owned by the manufacturer because they just can't afford overhead and all that. Yeah, the overhead. But.
For the most part, all the, the other states, I think there's one other one where you could. But you, you had to have a franchise dealer in order to sell cars. So what happens when Tesla can sell direct to consumer and bypass dealers? Think about it for a second. One is that margin that would go to dealers goes to them.
Keep more of the net.
Yeah.
More the profits.
And so the other thing is, is they don't have the overhead of flooring either. Right. So you think about dealerships, they have all this Overhead, they have rent. But one thing. And if you've watched the, the videos on chris collinsinc.com explaining why fixed absorption is a house of cards, and I explained flooring in one of those videos and what it means. So if you don't understand it, go, go there to the website and opt in and watch that video. But flooring is a line of credit for wholesale cars that the dealerships pay. And it's expensive. Tesla is taking an order and delivering to a car and there's, there's really no flooring as we would traditionally understand it. Right. So there's, there's no. That, that extra overhead isn't. Isn't there.
They also don't. Their employees aren't union.
Oh, really?
No. So in the factory, they've talked about going union, but as far as I know, they're not union whatsoever. So.
The next thing is software. So right now, on a Tesla car.
They. You can go into a menu in the car and buy different things so you can buy extra performance for $2,000. Like they have an app store in there where you. And then you never have to go to a dealership to get it done. It pushes right from a satellite into the car. So nobody else is. Most of the other manufacturers, the information pushes to a satellite and they can call you and tell you're due for service, but they literally push the programming down into the car and avoid service altogether.
Comfort of your own driveway.
Any updates, whatever it is, they just push them to the car.
I'm looking. I'm seeing that advantage, Chris. I'm seeing the advantage.
The, the other thing is their culture. So I'm going to go through a few of these and they're not in any, in any certain order, but their culture. So one thing that I was thinking about is Steve and I were talking about the service manager that used to work for him, but now is a service manager at Tesla. And he was saying that every two weeks, Tesla sends out a new memo and they change where they're going constantly. So whatever the directive was two weeks ago is different this week. Like, they're always changing. And we were talking about, we're like, well, if that happened to employees at a dealership, they would go crazy.
Right.
But you know why people at Tesla don't go crazy is because they're cutting edge and their culture has changed. They're driving change in the industry. So the employees are a part of this culture where change is accept. It's part of that culture.
Right? Yeah.
Yeah. So think about the difference in Culture between employees at dealerships and Tesla, they feel like they're doing something cutting edge and special employees at dealerships feel like, oh, it's constantly changing. We're always getting screwed.
Right.
And you know that won't last, right?
Yeah.
And so the cultures are completely different. So they get away, you know, they get away with, with more.
That's interesting.
The semis, so they're coming out with the semis and the pickup truck and their semis. When you think about what it's going to do to that industry, their, their cost per mile on those is going to be insane. And so when they start making those same thing, it's direct to consumer, no manufacturer, those margins are going to be completely theirs and they, they're going to have a huge impact on that. But the, the revenue from that is going to be crazy. So now understand the, the climate of electric cars. The reason why all the manufacturers are going to electric is because China is mandated by 2026, no combustion engine cars can be sold there. And it kind of counts down year over year. But the manufacturers are trying to get ahead of that. Right. Nobody has the batteries in the infrastructure to make batteries and the technology as Tesla. Tesla has the best batteries and they have batteries coming that are supposed to blow these away when everybody's just trying to get to where they're at, trying to catch up. So everybody's trying to catch up to where they are now, but the stuff they have coming blows away what they have now. So they're so far ahead in their battery technology then. No, I don't know how anybody would catch up. Like in part of the thing with electric cars is the hardest part of making them is producing the batteries. And he's got that in, in Nevada here, and then his plant in China, I believe is going to be fed by a plant in Germany making batteries there. So. And then that's the next thing. He's got a plant in China and he is, his cost to produce in China is way lower than it is here, but he's selling them for more money over there than he is here. So his margins in China are pretty thick. And then if he runs into competition, he can, he's got room to come down on his margins to be super competitive. But as it sits right now, his margins in China are going to be huge because he can make them for less there and he's selling them for more there. So he, he's so far ahead of everybody else with that that it's speculated that what's going to happen is he's going to end up providing batteries for the other manufacturers. He's. When, when everybody else kind of cries uncle, he's going to open the door and say, hey, I'll sell you the technology and I'll sell you the batteries. Because it might come to the point where everybody's trying to catch up and they can't. And he's so far ahead, right, that if he makes another.
Right.
Well, it would be the smart thing for some of the other manufacturers, like we were talking about Chrysler and Peugeot and even BMW to. That might be better joining him instead of fighting him, right. And using his technology.
You know, it's funny, like the saying goes, you keep your friends close and your enemies closer, but I don't think anybody's looking at Tesla as an enemy. They just can't see.
He's just quietly like, okay, so here's the other thing that, that fascinates me. And I think one of the, the biggest assets that nobody thinks about, right? So the Rembrandt in the, in the attic. Do you know, do you know what that means? No. Okay, the Rembrandt in the attic is if you went to buy a house in Pasadena, right? And let's say this house is, is on the market for $2 million. And you're, you're in the house and you're looking around, you're like, I want to go up and I want to see the attic. So you go up in the attic by yourself, and all of a sudden you see that over in the corner, all dusty, is a Rembrandt that's been there forever, right? So now if. What does the house value go to if there's a Rembrandt in the attic that nobody knows about?
Depends on who's wanting to pay what for it.
Let's say The Rembrandt's worth $30 million.
Okay?
What's the house worth?
Now, in my eyes, I'm going to say the same price, because I want that, right? But I think if we're going to value the house with that, we're looking at 30. 500, right? 30 million. 500,000. Or you said 2 million, so 32 million.
Yeah, yeah, but it's worth a lot. We would agree, right? So you come back and somebody says, well, I'll pay 2.2 million. And then you go, well, I'll pay 2.4. And you end up buying the house for 2.5, and you have this Rembrandt in the attic. So now you, you made a great deal, right? So a lot of us in our businesses have a Rembrandt in, in the attic, for example. Dealerships a lot of times don't understand that Often their, their biggest asset is their database, but they don't know how to mine it or work it or understand it, or they don't have a good relationship with it. Right. So, but in a lot of businesses that I've gone into over the years, there's always a Rembrandt in the attic somewhere that nobody sees. And it takes a fresh set of eyes like us to come in and kind of point that out. But the Rembrandt in the Attic, I think for Tesla, and purely my personal opinion, is that they've had driverless cars out there on the road collecting data for how many years now? Eight years, something like that?
Say five. Five, eight.
Yeah. So. Well, he was collecting data before they even turned it on. So Google, Apple, everybody out there trying to develop driverless cars is eight years behind them. They've had cars out there collecting data, location data, behavior data. All of their AI that they have for driverless cars is.
Way ahead of everybody else. And that intellectual property is worth a ton.
Right?
So as, as we, you know, proceed.
He'S, he's going to have a huge advantage there too. So when you, when you add all of these things up, you know, you, we have clients that the manufacturers like, hey, I want you to spend $10 million on a building. And they're like, well, I'm barely making money now. My new car sales are down and you're telling me you want me to spend $10 million on a new building? No way. And then the manufacturers, and we've been in on these conversations too, are saying, man, I wish the dealers just weren't in the way.
Right?
I wish that we could just do it and go direct to consumer. And so as the margins and the profitability for dealers go down, manufacturers appetite for going to direct to consumer goes up. And then you don't train your people and the, you know, you, you don't have great customer service and a great relationship with your market or your database. It, you know, it affects it. So it's a weird thing and I don't pretend to know where it ends up, but I am always surprised that we are ignoring Tesla. I'm always surprised that we don't want to talk about it because we can learn some stuff. We're not going to get ahead by ignoring the elephant in the room. It's not doom and gloom whenever industries are turned upside down or there's changes, there's other opportunities. And the one thing that there will always be a service. Right. I always wonder sometimes about dealers that came up through the industry in sales.
Right.
And then all of a sudden sales is going direct to consumer. They're not going to want to own service shops.
No. It's not their passion.
Yeah. It's not their, their ego is.
You know, is massaged or created through how many cars they sell. Right. You ask them on a Monday morning, what'd you do in gross in service or how many cars did you sell? They're going to tell you how many cars they sold. Right.
Instantly they're telling us before we ask.
Yeah. And so that's the thing is service isn't going away. Even on electric cars. You're going to need tires and brake fluid and other things. They're going to break. Right. But the new car sale is what's changing.
Right.
And so that's what's interesting about our industry. There's going to be opportunity for, but it's going to be on the service side and service driver revolution.
Oh, yeah. Well, one of the craziest things that I read was that they were, they were saying by 2020 there's going to be a million robo taxis on the road. A million robo taxi on the road. Which changes a lot when it comes to Uber Lyft and taxi companies. Right.
Well. And what that tells you is he who has the technicians wins.
Yeah.
Right. I think in trucking too, because we do a lot of stuff in the, in the trucking industry is he who has a technician wins. Like a lot of these trucking companies have fleets of techs and they're not going to be able to afford them. And if we as dealers can afford them, we will have the work. Right. Their maintenance work will come to us and all that. So it's really not ignoring the market. It's seeing the opportunity in the market as it changes. But you can't see that opportunity. But by turning a blind eye and not wanting to talk about it, open.
Your eyes and see what it is.
So great stuff. Thanks, Mario. We appreciate everybody and remind you that we have the best service drive revolution on demand platform with service manager, university advisor training, technician recruiting, which is the future. We're losing two technicians for everyone coming in the customer service training and actually technician training in there. It's a complete platform for you to get the results and achieve your. Your freedom in fixed stops have high fixed absorption to cover the drop in new car sales. It's it's available at Chris Collins Inc.com. and beyond that, we watch your cholesterol.
Yeah, no more ketchup, G man, and.
We'Ll see you again real soon. Thank you.
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