How Auction Managers Can Drive More Business

The vehicle remarketing business may seem as if it’s become all-tech, all the time, but the technology only serves as a tool to create a smoother auction operation.

For auction managers, roles and responsibilities are growing, while others can be relegated to new solutions. A session of managers detailed their experiences in the new auction environment on March 27 during the Conference of Automotive Remarketing in Phoenix, Arizona.

Moderator Julie Warpool, chief operating officer at Auction Edge, outlined the “Role Shifts for Auction Managers” session as focused on strategy, technology, efficiency, and process.

Strategy and vision drive choices of technology and tools. And work culture focused on people beats strategy, Warpool emphasized.

“You must have a vision for where you’re going and why you want to go there,” she said. “You must be able to instill that vision in your employees. And then strategy will make you decide about technology”:

• Should you build it or should you buy it?
• Do you really need that technology — is it worthwhile?
• What other tools do you need to put into place?

Those will drive your efficiencies and make sure you have the right programs for your operations, she said.

Today’s Auction Realities

Strategy must center on being all things to all people, which is hard to do, said panelist David Andrews, owner and CEO of City Enterprises and winner of the 2024 Remarketer of the Year Award.

The general manager is key to the success of the auction and must know every facet of the business, whether it’s retail, new car, used car, fleet, repossessions, a bank, etc., he said.

The auction business has rearranged into three primary ways to sell cars: In the lane, via simulcast, and digital/online, Andrews said. Each auction is different with a unique personality, requiring the leaders to figure out which markets the auction caters to and the related strategy to serve them.

Trevor Ottley, general manager of Mid-Kansas Auto Auction, said every customer has different expectations and demands. As a result, operators should engage with each customer and learn how they derive value and what’s important to them. That makes relationships with tech providers, transporters, and employees vital to providing value to customers.

Added Trish Short, COO of Akron Auto Auction: Strong customer relationships boil down to how you treat people and stay connected. Relationships built over years will help produce a prosperous business.

Technology Central to Meeting Customer Demands

Panelists shared some must-do tech tips to keep an auction viable:

• If you can’t sell and move cars on mobile phones, you will go out of business. The industry still has a long way to go before it can handle all business on an iPhone. — Andrews
• The goal is to shed redundancy, save employees time, see fewer bad results, and ease service to the buyers and sellers. — Ottley
• Auctions should automate as many functions as possible through technology but still retain the input of professionals to maintain the trust of and relationships with buyers and sellers. — Jim Mumford, vice president of Dealers Auto Auction of the Southwest.
• With so much technology, the challenge for auction managers is to get it to work together. Managers should develop relationships with tech providers who are on the ground and building the latest tools. — Ottley
• Allowing the management team to work with the wider team on pricing via a simplified app provides consistency among the staff and for customers, while streamlining the training process. Posting base prices available to both the auction team and buyers boosts transparency. — Short
• To ensure technical understanding across a multi-generational workforce, teams need to work together to allow the younger generations to help the older ones, while the older generation can instill solid work ethics in the younger ones. — Short

“There’s one number that counts. It’s the one at of the bottom of the page,” Andrews said.

One way technology helps efficiency: Use a system that finishes post-sale inspections as soon as possible to handle unhappy buyers. The speedier process also boosts profit. “That process is what runs this whole business,” Andrews said. “The process is the relationship that I’ve built with you. If our customers don’t succeed, we don’t succeed.”  

Ottley underscored how using advanced software is essential to remaining competitive. Arranging support with vendor partners smooths the auction selling process and reduces time and effort on errors.

“We’re in the business at that moment. And we don’t want a situation where somebody has issues and we’re getting voicemails.”

Empowering Employees to Deliver Top Customer Service

When handled with the right balance by auctions, technology can enhance customer connections and confidence.

“You want to spend your time having relationships with your customers,” Ottley said.  I don’t want to spend my time sending the same email over and over or doing process work. We want to develop that relationship with the customer, maximizing the value of their asset, and ensuring the quality is there.”

Andrews added, “Ask customers what they need; don’t tell them what we think they need. You must make it worth their while to come to your auction for the cars. What technology helps them succeed better?”

Measure all metrics in real time all the time through technology and tracking mechanisms, Ottley advised. Real-time reporting helps inform employees who are managing the entire process of vehicles coming through auctions.

“If the guy in the detail shop can plan his work and knows what’s coming, he can plan the labor and staff the job.”

To spur success, invite employees to be part of the process and solution, Short said. Put the right people with the right roles and let them work together and help each other without micromanaging them.

Be creative and instill in your staff and your talent a reason to want to be part of the same process where everybody is pulling the same direction, Mumford said. Investing in regular monthly management training on how to measure production and growth will keep company managers fulfilled in their work and satisfied with generating good results, he added. They will know their expectations and see more opportunities for growth.

Help employees see the vision of where they can go instead of just doing a job, Mumford added. They need to believe in that and be able to speak their minds and share ideas.

Your employees must know you care, so spend time talking with them at their locations, Andrews said. Always be recruiting to get the best players on your team. Then figure out how to keep them because everyone is trying to poach the best employees. “If I’m good to our employees and take care of them, then I don’t have to worry about the customers because they’ll take care of the customers,” he said.

The panel also advised that giving employees the security and room to make an occasional mistake while pursuing new ideas instills a sense of ownership for actions and results.

“Know what all the jobs and roles in an auction involve,” Short said. “Get in the trenches with your employees.” Be able to carry on or fulfill their roles when they are absent. “I think that has helped me be a better leader and manager over the years. We’re a family I’m proud of and we work hard and play hard.” Akron Auto Auction is a third-generation family-owned business founded 51 years ago.

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