Category: FullAuction

Cooper Solutions removed its sellers’ fees at the beginning of 2019 in a move to further support dealers selling through its trade-only online auction site, FullAuction. As the year draws to a close, the business has confirmed that fees will not be re-introduced in 2020, therefore continuing to add value to its trade remarketing solution by maximising profits for retailers, crucial in the current competitive and challenging market.

FullAuction delivers similar or better results against CAP as physical auction houses and the large online players, but allows dealers to sell their trade stock and keep 100% of the profits. Analysis has shown that many dealers sell their stock through FullAuction before a physical auction has even collected the vehicles.

Dean Pipitone, Managing Director for Cooper Solutions, commented, “Making the decision to stop charging sellers has helped increase dealer profits. Without the overheads of physical auction houses, FullAuction delivers a cost-effective remarketing solution, and without sellers’ fees, it is an even more profitable route to disposal of stock.”

Cooper Solutions has carried out detailed research into the profitability of physical vehicle auctions. After reviewing more than 44,000 car sales, it was found that physical auction fees are typically larger than the profits retailers make on each sale, putting undue pressure on dealers’ margins. Not only does FullAuction reduce the cost of selling for dealers, it also reduces the time it takes to dispose of stock, meaning dealers get the money in the bank more quickly, boosting their bottom line.

Dean Pipitone continued, “FullAuction boosts the average pounds per unit and CAP performance by optimising the mix of well described stock, a large pool of buyers and outstanding profits for sellers. We have an ongoing commitment to deliver the best in digital solutions for dealers, which includes continually reviewing and improving existing solutions. Even the most successful solutions can have the potential to serve the market even more effectively, and we are committed to investing in FullAuction to ensure it continues to provide valuable support to our dealer partners.”

https://www.coopersolutions.co.uk/public/cooper-solutions-products/online-trade-vehicle-auction-site/

Barry Cooper takes a closer look at the economies of trade sales.

With increasing competition squeezing gross profit margin and customers demanding more, the modern retailer is facing challenging times.

With so much to do to ensure every day is a success, it is often the less glamorous functions of the business, like trade disposal, that get overlooked.

Just moving from physical to an online auction platform could more than double trade sale profits.

When it comes to selling on an online auction site, there are a few things sellers can do to give their vehicles the edge.  One thing is for sure, honesty is the best policy when it comes to listing vehicles. Buyers won’t necessarily be put off by the odd scratch or dent, but if you hide it, they’ll rightly wonder what else you aren’t telling them.

An accurate listing and description of a vehicle is the most important thing to remember. Sellers should also make sure they have a complete service history, V5 and MOT certificate. This enables retailers to know what they are buying and have confidence in the seller and the condition of the car they are bidding on. A car that’s described honestly will maximise bidding opportunities and encourage more sales. Include a full description, such as colour and condition, but don’t forget to highlight benefits such as a low mileage or any attractive interior features.

On top of an accurate description, good presentation is key in attracting a good level of buyer interest. Spend a little extra and get a proper valet service to spruce up the vehicle. Vehicles that are well prepared will retail quickly, improving stock turn and cash flow.

Photography is essential to enhance the description. Wash the vehicle before taking pictures and get shots of the interior and exterior, plus a photo of the service book. Use the best pictures first, using a full shot of the vehicle as the cover image.

Another trick of the trade is to set a realistic reserve price. Remember, this is only disclosed to buyers once the auction has finished, however, by starting at a low price, sellers can attract early bidders and watchers.

FullAuction is our trade-only vehicle auction site and makes selling easy and more profitable. Many of the key steps for getting a good price are included in FullAuction, helping retailers sell their stock for more. In addition, the service attracts hundreds of validated buyers, with a quick and easy listing process, making it easier to sell and deliver vehicles for a more positive auction experience.

We launched FullAuction, our online trade remarketing platform, in 2011 and since then Cooper Solutions has grown successfully across many areas of our business. We’ve seen:

• Total annual revenue rise by 133%
• Employees nearly double to 32
• Annually subscribing franchised dealers up from 1247 to over 2000
• Dealer demo and loan cars insured on a daily basis up to over 9000 per day

An excellent record of success achieved through great people working together to develop, market and support software solutions that help retailers’ processes, performance and profitability.

Interesting then to note that during that time FullAuction hasn’t enjoyed the remarkable success we’ve come to expect.

Almost 75000 cars have been sold at an average profit of £159 per car; more than 2000 buyers have registered with us, of which more than 1700 purchased a vehicle in the last 12 months.

However, these numbers are slight compared to those seen by physical auction houses which remain the remarketing channel of choice, despite typically making more than the selling dealer from the transaction because of the high buyers’ fees they charge.

Given the declining profitability of sales departments and dealers in general, isn’t it time to ring the changes with a shift to online auction – it adds as much value, but with a far lower overhead.

Across all our solutions nothing can make a retailer more incremental revenue than FullAuction.

With Valentine’s Day fast approaching, here are our Top Tips for writing the best profile for your vehicle to ensure you find its best match!

Find Your Vehicle’s Perfect Match on FullAuction

In a comparative analysis of transaction costs between traditional and online auctions, the fundamental difference is that physical auction charge buyers a considerable fee, around two-thirds of the total transaction cost.

Selling dealers pay the remaining third, but will often be offered a volume rebate to bring this down below £100 per unit. It’s the buyer’s costs that stand out and which will directly influence the price paid.

A regular buyer will pay over £200 for a car worth £3000 and £250 for cars over £5000. Volume brands achieve average selling prices around £3000 per unit for trade cars, prestige cars up to double that. All dealer stock is therefore expensive to buy at auction and there is every probability the buyer will pay more in fees than the selling dealer will achieve in profit.

Matthew Hall of MSH Ltd, one of our 5294 registered buyers, says “I am more likely to buy from FullAuction than from its competitors because it allows me to cap my budget when bidding so I can avoid eroding my margins. Unlike other users who may be retailers with a large forecourt holding lots of stock, I have a quick turnaround and therefore my margin is much tighter”.

The online model works, buyers like it, they can bid on the move and do so with confidence.