Today on CBT News, Jim Fitzpatrick is joined by Brian Pasch, Founder and CEO of PCG Companies and host of Auto Marketing Now on CBT. Pasch is back on the show to discuss what transpired in 2020 in the automotive industry and what dealers can expect as we move into 2021.
Pasch opens the conversation by giving a personal perspective on how the pandemic impacted his company. When travel came to stop, Pasch was concerned about how his company would continue to provide consulting services across the country. He says that his team had to make a major pivot to adjust their strategy. Pasch praises dealers for their strong finish after the unfortunate circumstances threatened to derail sales performances across the country.
Pasch then goes into his concern for the knee-jerk reaction of dealers that entered the digital retailing space instead of genuinely switching their business strategy to align with online retailing. He says that many dealers have leaned into digital retailing to survive the shutdowns, but he says that many are still in love with the showroom experience.
“The number one fear is losing that PBR or back-end gross,” said Pasch. “I haven’t worked with one dealer yet who has implemented digital retailing right where the PBR has gone down, but that doesn’t do anything to change their mind.”
Pasch concludes the conversation by diving into the OEM perspective on digital retailing with their dealers. Every OEM has some form of plan, but it’s important for dealers to share the vision with their OEM to make digital retailing a success in their dealership. Online retailing will continue to grow in popularity with consumers as more and more people look to complete their entire purchase online. Pasch uses the example of the Ford Bronco breaking records with pre-orders despite car buyers not even having the chance to sit in the vehicle.
