Investing in the auto business
Despite the fact that this article of the magazine Director-Info is more than 15 years old, the recommendations as a whole have not lost their relevance.
The approximate payback period of a reputable official auto center for Moscow is about 3.5-4 years from the date of the start of operations - starting investments of $ 5 million.
The market for imported cars in Russia is still growing due to the “transplantation” of motorists from the products of the Russian automobile industry or foreign second-hand to new cars from world manufacturers. As long as this trend continues, the one who will be able to organize uninterrupted deliveries, ensure the necessary assortment in the lineup and avoid overstocking of stocks with unsuitable equipment will win in competition.The competition is especially strong at the turn of the model year, when each supplier seeks to make his offer as attractive as possible for the buyer through discounts, gifts, etc. It is then that the distributor needs a significant margin of safety.
The market of foreign cars is gradually acquiring all the features of European counterparts. But even today, an investor who has decided to enter this business can count on a visible increase in his capital. This is confirmed by close attention to the domestic market of almost all world manufacturers, and the constantly growing demand for foreign cars from consumers.
Currently, many automobile companies consider the Russian market a priority. Choosing a strategy for its conquest, some are building assembly plants in Russia, others are limited only to establishing a sales and service network. But in any case, to bring products to consumers, they need official dealers. They are needed every day more and more.
How to choose a brand for dealership?
In principle, an investor can choose any brand. The main thing is to get the consent of the manufacturer. A novice dealer should take into account several nuances.
• You can try to enter the business from a cheaper segment of cars, and then, having gained some experience, go to the dealership of premium cars. Dealership of Russian brands is unlikely to bring significant income to the investor. Their cost is low, which means that the margin from their sale will be small. Yes, and market opportunities for new dealers are much less.
• The presence in Russia of an official importer will greatly facilitate the process of purchasing, delivering cars to the salon, and also provide the dealer with more flexible financial working conditions.
• The more diverse the model range, the wider the range of additional equipment, trim, etc. the manufacturer offers, the more difficult it is for a novice dealer to calculate the need for cars in advance, which means that there may be problems with implementation.
• The success of the dealer depends on the degree of qualification and level of training of auto mechanics. Proceeding from this, manufacturers who organize trainings and advanced training courses for employees of their network are more attractive for beginning investors.
• Theoretically, a novice entrepreneur can start a business according to a franchise scheme, i.e. using the brand of a dealer already known to the market, open your auto center. In this case, he will face double control over his activities, both from the franchisor and from the automaker.
• The sale of foreign trucks is quite promising. This segment of the auto business is not yet full. Now Renault, Man, Volvo are actively promoting the domestic market, although consumers still prefer to buy used foreign trucks.
For premium cars, the market is gradually filling up, which means that less and less opens in this segment of dealerships. After all, buyers of such cars make up only about 2% of the population. And for cheaper foreign cars, there are still enough opportunities for opening car dealerships.
Entry Threshold
The threshold for entering the auto business depends on the brand chosen by the investor and the location where it is planned to sell cars. It is clear that in the regions the volume of start-up investments will be less, for the opening of the Moscow dealer center, solid injections are needed.
After determining the brand and location, the investor must agree with the representative office on the profile of his future activities. Many manufacturers are aimed primarily at the opening of comprehensive dealer auto centers that provide a full range of services for cars of this brand (sale, warranty service, repair and sale of spare parts). And an entrepreneur cannot do with one car dealership. But in some cases, a businessman can start with an authorized salon without a service. Moreover, he is obliged to open a full-fledged auto center in the future.
Autocenter placement options
1.Location in the buildings of former fleets.
The cost of renting such premises in Moscow ranges from 200-500 dollars / sq. m. Minimum area - 450 square meters. m
2. Reconstruction of suitable facilities.
Requires an area of at least 1, 500 square meters. m (rent - from 150 dollars / sq. m). The cost of preparing the building is about 700 thousand dollars, service equipment - 300 thousand dollars, design - 50 thousand dollars, the purchase of spare parts - 80 thousand dollars, the purchase of cars - from 350 thousand dollars. It should be noted that such alteration in accordance with European standards is very difficult and costly
3. the construction of single middle-class auto centers (about 2.4 million dollars).
Land acquisition - about 0.2 hectares (300 thousand dollars), construction of a salon (about 1700 sq. M, from 815 thousand dollars), service equipment - 300 thousand dollars, registration - 50 thousand dollars, purchase of spare parts - 80 thousand dollars, purchase of cars - from 350 thousand dollars
4.Construction of an auto center that meets international standards (from $ 3 million and above).
The final cost will be affected by the location of the center, the method of registration of land rights (property or lease), the size of the building, the cost of equipment, etc.
For an authorized dealer of a well-known global car brand, the latter option is most preferable.
The following scheme is popular today: a large head auto center is being built, which is engaged in the sale and maintenance of cars, and car sales offices are opening in different areas of the city, services for which the client can get in the head salon.
Despite the significant “whitening” of Russian car dealerships, a certain number of “gray” dealers (that is, those who do not have a contract with the manufacturer) are still on the market. It makes no sense to invest in a “gray” auto center to an investor seeking respectability. Many Russian representative offices of foreign car manufacturers achieved special prices for their official partners, which immediately affected the profitability of gray dealers. And customs, with the filing of the same representative offices, are also not always loyal to “unofficials”.
A constant outflow of customers from "gray" dealers to official dealers is guaranteed, since the latter provide the European level of services for the sale and repair of cars.
How to organize a dealership?
If an entrepreneur wants to invest in a car dealership, having given them to the management of a team of professionals, and then to receive a certain profit on his investments, then he just needs to become a shareholder of the created company. If he decided to lead the business with his own hands, then he needs to start with the following fundamental steps:
• gather a team of professionals, at least top managers. In the most extreme case, this should be an experienced coach, a long time engaged in the auto business, who realizes how the development strategy of the dealership is formed and how it is then implemented in practice;
• to purchase (buy / rent) a building land, preferably on the first line of the city’s largest transport arteries, at the intersection of the Moscow Ring Road and federal roads. There should be a convenient access to the site. Now the tidbit is the Third Transport Ring;
• develop a detailed detailed business plan for the implementation of the project. To start, you need a miscalculation of the volume and structure of planned investments, the break-even point and the moment you reach the desired rate of return.
The investor should clearly understand that a good profit in the auto business will appear only after serious start-up investments. And this is not only about construction, the purchase of equipment, goods, accessories, but also about hiring qualified personnel, creating a corporate culture, introducing modern databases and much more.
Opinion If we talk about the Moscow dealership (car dealership, service station, spare parts warehouse) of a solid European brand, then the minimum investment is from $ 5 million. The specific value depends on the brand chosen by the investor.
It all starts with a request to the official Russian representative of the automaker. The necessary information can be found at www.auto-dealer.ru/dealers.asp. On the website of any representative office there is an address for potential business partners where the investor sends a letter of intent to become a car dealer of this brand and receives formalized questionnaires in response.
All car manufacturers have their own questionnaire content. If the investor already has his own car business, then in the questionnaire he provides information about his company, its current activities, assets offered for the organization of the service and shopping center premises, the market of this region, plans for the development of the company, photographs and a location plan on the ground.
If the investor has only allocated land, then the main emphasis should be on a business plan, where the main parameters of work should be agreed upon (the number of car sales, the volume of services provided, etc.). The investor also provides financial guarantees to serving banks.
Most representative offices have a dealer network development manager. First you have to communicate with him. He will request more detailed information on some issues and then, if he is interested in the offer of a potential partner, he will visit a future dealer.
If the representative office is satisfied with everything, we will talk about the beginning of cooperation. The decision to open a dealership is made by the representative office or the authorized company-importer. At this stage, the parties can sign a protocol of intent, which will fix the procedure for the construction, opening, purchase of equipment, etc., the purchase of a batch of cars, a sales plan for a year, an advertising company, etc. Failure by a potential dealer to fulfill the obligations and deadlines specified in this protocol is a sufficient reason for refusing to cooperate with the manufacturer.
Such a protocol may not be signed. In any case, the legal basis for cooperation between the manufacturer and the dealer is the dealer agreement. The moment of its conclusion is different for different manufacturers. Often it is timed to the end of the construction of the auto center before its opening.
A typical car center includes an exhibition hall (the so-called show-room), a relaxation area for visitors, staff offices, a warehouse for cars and spare parts, and service.
The construction and equipment of a car center building takes on average about 1.5 years. Depending on the brand of cars and the scale of the center, the cost of construction ranges from 1.5 to 19 million dollars.
The automaker most often presents a set of requirements and wishes regarding the architectural plan, corporate design and selection of colors, equipment and tools, furniture. The dealer may be offered a choice of several manufacturer-certified equipment suppliers. The cost of equipment depends on the size of the technical center; say, Audi's average technical station for 25 jobs will cost an investor $ 450-500 thousand
As part of the manufacturer’s requirements, the dealer can take steps to optimize construction estimates. For example, in a car service, instead of expensive plunger lifts (about 6 thousand dollars each), you can put rack-mounted German (4 thousand dollars) or Italian (3 thousand dollars). In principle, you can equip the service with Russian lifts for 1-1.5 thousand dollars, if, of course, the automaker does not mind. Indeed, almost every step in the construction and equipment of the auto center of a solid world auto brand is consistent. Therefore, the risk of doing “something wrong” in the end is small for the investor.
When constructing a multidisciplinary auto center, an entrepreneur must take into account certain building standards, for example, body repair refers to harmful production, therefore there are requirements for remoteness from residential buildings.
For the implementation of car dealerships, it is necessary that the dealer company is entered in the commercial register (this is required both for the sale of cars, and for the sale of spare parts, etc.). A certificate of entry in the Moscow Commercial Register is issued by the Consumer Market Administration of the Moscow Region Administration. As for the car service, there you need to have Rostest certificates (www.rostest.ru) for certain types of work (pre-sale preparation, work on electrics, chassis, etc.).
Business process specifics
For each batch of cars, the dealer enters into a contract, which specifies the terms of delivery and price. A business process can be organized as follows.
1. purchase of cars in the country of manufacture.
The dealer purchases cars directly at the manufacturer's factory. He insures the car himself, delivers it to his salon and clears customs clearance (as a rule, for official dealers this procedure is simplified and takes about 1-2 days). In the car, cars undergo pre-sale training. Thus, the dealer has a full range of problems associated with the delivery of cars from the factory gates to the doors of their salon.
The average customs payment for a premium car is approximately 56% and is calculated on the purchase price at the plant plus transportation costs to the border and insurance (an approximate calculation can be made on the website www.tks.ru/auto/calc.shtml).
If the delivery of cars from abroad (in Europe) is organized on their own, then you need to either create your own delivery service or a full-fledged transport company, or rent a car transporter from other car dealers or transport companies (approximate rental price is 1800 euros per flight). The carrier must have a license for the carriage of goods in international road traffic, a license for an all-Russian customs carrier, a certificate of compliance with international standards Euro-2 and Euro-3.
Transporting a smaller number of cars on a “foreign” car transporter than its full capacity (7–9 pcs.) Will cost more, since the owners of the car transporter will be forced to understaff it with cars of other dealers.
2. purchase of cars from a Russian official importer.
Recently, there has been a trend towards centralized deliveries of machines to Russia by individual brands. In particular, BMW, Ford and General Motors switched to such a scheme. Volkswagen importer is expected to open in early September. In this case, the importer decides all issues with the transportation of cars to Russia and their customs clearance. "For the money" for the dealer, both options are approximately the same as a result. But for the beginner, the second option is more attractive.
Most often, manufacturers work with Russian dealers on the terms of 100% payment for shipped cars (Audi, Volkswagen, Toyota, Honda). If a manufacturer in the Russian market has an official importer with a warehouse common for all dealers, then the latter can take cars on the terms of a commodity loan (for example, BMW, Volvo, Opel, etc.). The dealer takes a batch of cars from the general warehouse and sells it within a calendar month. If at the end of the period there are unrealized cars left, then the importer pays interest on their value daily. After, say, three months, the dealer must redeem unsold goods. Therefore, a careful monthly calculation of the sales plan in this case is especially important.
Practice shows that the average annual sales volume from which the car dealer of a solid premium automobile brand starts is 250-450 cars per year. Less sales are not profitable. When calculating the implementation of cheaper car brands, an investor can take about 1, 000 cars a year as a guideline.
How many cars should be kept in stock?
First of all, it depends on the brand of the manufacturer. If he offers a wide range of models, then the dealer, accordingly, has to keep a lot of cars in stock, and vice versa. Практика показывает, что на складе дилера в любой момент времени должно находиться автомобилей в 2 раза больше, чем планируется продать за месяц. То есть, если план на данный месяц - 20 машин, то на складе должно быть 40 машин.
Каждый производитель устанавливает дилерам цены. При этом учитывается маржа, которую должен получить последний для своего развития. У каждого производителя, разумеется, свой размер маржи. Однако сейчас в России она составляет в среднем 8-15% от стоимости автомобиля. Для привлечения клиентов дилер может предпринимать рекламные акции по снижению цен, но, разумеется, за счет уменьшения своей маржи.
При четком выполнении дилерского плана производитель, как правило, предоставляет бонусы (разумеется, если это оговорено в дилерском договоре). Причем производителю важно выполнение именно помодельного плана.
Что касается сервисного обслуживания в автоцентре, то производитель регламентирует технологию ремонта и нормативы времени на выполнение той или иной работы, перечень гарантийных работ, минимальный набор хранимых на складе запчастей и т.п. А их стоимость устанавливает дилер, ориентируясь на рынок. Что касается гарантийных работ, то большинство поставляемых в Россию через официальных дилеров автомобилей иностранного производства имеют заводскую гарантию сроком на 1 год. Дилерская гарантия более продолжительная и устанавливается им самим. В этом случае с клиентом заключается договор, в котором подробно прописывается перечень ремонтных работ (в гарантию, как правило, не включают работы по «жестянке», ремонтные работы, произведенные на неавторизованных сервисах).
Окупаемость вложений в автобизнес
Соотношение доходов от сбыта машин и от оказания сервисных услуг зависит от рентабельности и объемов продаж выбранной марки автомобилей. Сейчас рентабельность сервисных работ для большинства иномарок выше, чем их продажа. Кроме того, многое определяется политикой инвестора: в раскрутку какого из этих двух направлений он вкладывает больше средств.
При расчете окупаемости вложений в автоцентры на Западе бизнесмены ориентируются на прибыль 2-3% с оборота и рентабельность на инвестированный капитал порядка 12-20%. Российские предприниматели вправе рассчитывать на большие величины, даже несмотря на снижение доходности отечественного автобизнеса по сравнению с началом 90-х годов.
Приблизительные сроки окупаемости солидного официального автоцентра для Москвы - около 3, 5-4 лет со дня начала деятельности.
Если говорить о доходности дилерства иномарок, то многое зависит от характеристик производственных мощностей (марка автомобиля, объем продаж, количество подъемников, перечень услуг сервиса, и т.д.). Повышение доходности возможно за счет:
• увеличения коэффициента загрузки сервисного центра. В компаниях, успешно работающих на рынке, он равен примерно 0, 7-0, 8. На этапе запуска он редко составляет более 0, 2-0, 3;
• продажи и установки сопутствующих товаров и аксессуаров для автомобиля: аудио и видео, сигнализация, антикор, охранные системы, парковочные радары, холодильники и пр.;
• предоставления клиентам услуг по тюнингу: тонировка, аэродинамические пакеты, тюнинг двигателя;
• подвески и т.д.;
• развития продаж автомобилей в кредит;
• развития системы Trade-in и реализации подержанных машин;
• страхования автомобиля и других страховых услуг.
Однако определяющий фактор - все же персонал автоцентра. Без привлечения сильных специалистов шансов «раскрутить» дилерство у инвестора практически нет.
Рекламная компания
Успех автодилера во многом определяется особенностями применяемой им маркетинговой стратегии и рекламной кампании. Набор рекламных носителей у всех дилеров одинаков: наружная реклама, радио, публикации в прессе.
Рекламная кампания автоцентра согласовывается с представительством производителя. Степень свободы, которую оно предоставляет автодилеру при выборе носителей, различен в зависимости от брэнда. Кроме того, представительства проводят свои кампании, в которые включают информацию о своих дилерах.
Практика показала, что наиболее успешными рекламными инструментами московских автодилеров становятся рекламные щиты и перетяжки, размещенные на крупных автомагистралях в престижных районах столицы. Причем наибольший эффект имеют наружные рекламные носители, размещенные на трассах в местах образования автомобильных «пробок». Ведь если человек проносится мимо щита на скорости 120 км/ч, то вряд ли он успеет даже осознать смысл размещенной там информации. Совсем другое дело, когда потенциальный покупатель томится в пробке, и его взгляд наталкивается на профессионально сделанную рекламу. Еще одно эффективное средство привлечения внимания к дилеру - Интернет-сайт и рекламные публикации в наиболее авторитетных специализированных автомобильных газетах. Реальная отдача от размещенной на сайте информации приходит с минимальной инерцией (3-4 дня).
Расширить круг клиентов автоцентра помогает использование программ Trade-in. Схема проста: клиент приходит в автосалон со своей старой машиной. Эксперты салона оценивают остаточную стоимость автомобиля и составляют акт. Затем на основании акта определяется сумма доплаты за новую машину. Автосалон получает в собственность снятый с учета в ГИБДД автомобиль, а клиент сразу после полной оплаты разницы в стоимости автомобиля, приобретает новый. Старое авто салон может продать на вторичном рынке, гарантируя его юридическую чистоту и обеспечив потенциального покупателя информацией о его техническом состоянии. Отметим, что в Европе продажа машин по схеме Trade-in приносит дилерам больше дохода, чем реализация новых.
Автомобили в кредит
Действенный для дилера инструмент увеличения продаж - реализация машин в кредит, который оформляется прямо в помещении салона у представителя банка.
Для начала работы по программе автокредитования дилер заключает с банком рамочное соглашение о сотрудничестве, которое описывает процедуру выдачи кредита, порядок взаимодействия сторон и содержит формы документов, применяемых при данной процедуре.
Как правило, автосалон выделяет одного или несколько сотрудников, которые курируют клиентов, желающих купить автомобиль с использованием кредитных средств банка. Лучше, если банк проведет обучение менеджеров по продажам автодилера, чтобы они могли проконсультировать потенциального покупателя и при необходимости провели предварительный расчет параметров кредита.
После одобрения банком клиента автосалон выставляет в банк счет на имя покупателя с указанием суммы, недостающей для оплаты полной стоимости автомобиля. Банк проверяет, соответствует ли данная сумма максимальному лимиту, который был одобрен для клиента.
После заключения кредитного договора банк перечисляет средства на счет, указанный автосалоном в счете на оплату.
Банк выполняет перед дилером все обязательства покупателя, а уже затем взимает с последнего причитающиеся проценты. В день оформления автомобиля в собственность также подписывается договор страхования. Оригинал ПТС и копия страхового свидетельства передается в банк через представителя автосалона.
Задача автодилера - заинтересовать клиента в приобретении автомобиля и подвести его к мысли о получении кредита для покупки в конкретном банке. Единственно, чем дилер может помочь покупателю, - уменьшить его процент по машине за счет своей маржи, тогда приобретение автомобиля у данного дилера через определенный банк станет клиенту выгоднее.
Антон Соколов
Источник: журнал «Директор-инфо» № 30'2003
Инвестиции в автобизнес
Несмотря на то, что этой статье журнала "Директор-инфо" более 15 лет, рекомендации в целом не потеряли своей актуальности.
Приблизительные сроки окупаемости солидного официального автоцентра для Москвы - около 3, 5-4 лет со дня начала деятельности — стартовые инвестиции от 5 миллионов долларов.
Рынок импортных автомобилей в России по-прежнему растет за счет «пересаживания» автомобилистов с продуктов российского автопрома или иностранного second-hand на новые машины от мировых производителей. Пока эта тенденция сохраняется, в конкуренции будет выигрывать тот, кто сможет организовать бесперебойные поставки, обеспечит нужный ассортимент в модельном ряду и избежит затоваривания складов неходовыми комплектациями.Особенно сильно конкуренция ощущается на рубеже смены модельного года, когда каждый поставщик стремится сделать свое предложение максимально привлекательным для покупателя за счет скидок, подарков и т.д. Именно тогда дистрибьютору требуется значительный запас прочности.
Рынок иномарок постепенно приобретает все черты европейских аналогов. Но и сегодня инвестор, решивший войти в этот бизнес, может рассчитывать на зримый прирост своего капитала. Это подтверждается и пристальным вниманием к отечественному рынку практически всех мировых производителей, и постоянно растущим спросом на иномарки со стороны потребителей.
В настоящее время многие автомобильные компании считают российский рынок приоритетным. Выбирая стратегию его завоевания, одни строят в России сборочные заводы, другие ограничиваются только налаживанием сбытовой и сервисной сети. Но в любом случае для доведения продукции до потребителей им нужны официальные дилеры. Их требуется с каждым днем все больше и больше.
Как выбрать марку для дилерства?
В принципе, инвестор может выбрать любую марку. Главное при этом - получить согласие самого производителя. Начинающему дилеру стоит учесть несколько нюансов.
• Можно попробовать войти в бизнес с более дешевого сегмента автомобилей, а затем, набрав определенный опыт, перейти к дилерству машин класса «премиум». Дилерство российских марок вряд ли принесет инвестору значительный доход. Их стоимость невысока, а значит, и маржа от их продажи будет небольшой. Да и рыночных возможностей для новых дилеров намного меньше.
• Наличие в России официального импортера значительно облегчит процесс закупки, доставки машин в салон, а также обеспечит дилеру более гибкие финансовые условия работы.
• Чем разнообразнее модельный ряд, шире гамма дополнительного оборудования, отделки салона и пр. предлагает производитель, тем сложнее начинающему дилеру рассчитать потребность в автомобилях заранее, а значит, могут возникнуть проблемы с реализацией.
• Успех дилера зависит от степени квалификации и уровня подготовки автомехаников. Исходя из этого, для начинающих инвесторов более привлекательны производители, которые организуют тренинги и курсы повышения квалификации для сотрудников своей сети.
• Теоретически начинающий предприниматель может начать бизнес по франчайзинговой схеме, т.е. используя брэнд уже известного рынку дилера, открыть свой автоцентр. В этом случае он столкнется с двойным контролем над своей деятельностью, как со стороны франчайзера, так и со стороны автопроизводителя.
• Достаточно перспективна продажа иностранных грузовых автомобилей. Пока еще этот сегмент автобизнеса не заполнен. Сейчас на отечественный рынок активно продвигается Renault, Man, Volvo, хотя потребители все еще предпочитают приобретать подержанные иностранные грузовики.
По автомобилям класса «премиум» рынок постепенно заполняется, а значит, в этом сегменте дилерских центров открывается все меньше и меньше. Ведь покупатели таких автомобилей составляют всего около 2% населения. А по более дешевым иномаркам возможностей для открытия автосалонов пока что хватает.
Порог вхождения в автобизнес
Порог вхождения в автобизнес зависит от выбранной инвестором марки и местоположения, где планируется продавать автомобили. Понятно, что в регионах объем стартовых инвестиций будет меньше, для открытия же московского дилерского центра нужны солидные вливания.
After determining the brand and location, the investor must agree with the representative office on the profile of his future activities. Many manufacturers are aimed primarily at the opening of comprehensive dealer auto centers that provide a full range of services for cars of this brand (sale, warranty service, repair and sale of spare parts). And an entrepreneur cannot do with one car dealership. But in some cases, a businessman can start with an authorized salon without a service. Moreover, he is obliged to open a full-fledged auto center in the future.
Autocenter placement options
1.Location in the buildings of former fleets.
The cost of renting such premises in Moscow ranges from 200-500 dollars / sq. m. Minimum area - 450 square meters. m
2. Reconstruction of suitable facilities.
Requires an area of at least 1, 500 square meters. m (rent - from 150 dollars / sq. m). The cost of preparing the building is about 700 thousand dollars, service equipment - 300 thousand dollars, design - 50 thousand dollars, the purchase of spare parts - 80 thousand dollars, the purchase of cars - from 350 thousand dollars. It should be noted that such alteration in accordance with European standards is very difficult and costly
3. the construction of single middle-class auto centers (about 2.4 million dollars).
Land acquisition - about 0.2 hectares (300 thousand dollars), construction of a salon (about 1700 sq. M, from 815 thousand dollars), service equipment - 300 thousand dollars, registration - 50 thousand dollars, purchase of spare parts - 80 thousand dollars, purchase of cars - from 350 thousand dollars
4.Construction of an auto center that meets international standards (from $ 3 million and above).
The final cost will be affected by the location of the center, the method of registration of land rights (property or lease), the size of the building, the cost of equipment, etc.
For an authorized dealer of a well-known global car brand, the latter option is most preferable.
The following scheme is popular today: a large head auto center is being built, which is engaged in the sale and maintenance of cars, and car sales offices are opening in different areas of the city, services for which the client can get in the head salon.
Despite the significant “whitening” of Russian car dealerships, a certain number of “gray” dealers (that is, those who do not have a contract with the manufacturer) are still on the market. It makes no sense to invest in a “gray” auto center to an investor seeking respectability. Many Russian representative offices of foreign car manufacturers achieved special prices for their official partners, which immediately affected the profitability of gray dealers. And customs, with the filing of the same representative offices, are also not always loyal to “unofficials”.
A constant outflow of customers from "gray" dealers to official dealers is guaranteed, since the latter provide the European level of services for the sale and repair of cars.
How to organize a dealership?
If an entrepreneur wants to invest in a car dealership, having given them to the management of a team of professionals, and then to receive a certain profit on his investments, then he just needs to become a shareholder of the created company. If he decided to lead the business with his own hands, then he needs to start with the following fundamental steps:
• gather a team of professionals, at least top managers. In the most extreme case, this should be an experienced coach, a long time engaged in the auto business, who realizes how the development strategy of the dealership is formed and how it is then implemented in practice;
• to purchase (buy / rent) a building land, preferably on the first line of the city’s largest transport arteries, at the intersection of the Moscow Ring Road and federal roads. There should be a convenient access to the site. Now the tidbit is the Third Transport Ring;
• develop a detailed detailed business plan for the implementation of the project. To start, you need a miscalculation of the volume and structure of planned investments, the break-even point and the moment you reach the desired rate of return.
The investor should clearly understand that a good profit in the auto business will appear only after serious start-up investments. And this is not only about construction, the purchase of equipment, goods, accessories, but also about hiring qualified personnel, creating a corporate culture, introducing modern databases and much more.
Opinion If we talk about the Moscow dealership (car dealership, service station, spare parts warehouse) of a solid European brand, then the minimum investment is from $ 5 million. The specific value depends on the brand chosen by the investor.
It all starts with a request to the official Russian representative of the automaker. The necessary information can be found at www.auto-dealer.ru/dealers.asp. On the website of any representative office there is an address for potential business partners where the investor sends a letter of intent to become a car dealer of this brand and receives formalized questionnaires in response.
All car manufacturers have their own questionnaire content. If the investor already has his own car business, then in the questionnaire he provides information about his company, its current activities, assets offered for the organization of the service and shopping center premises, the market of this region, plans for the development of the company, photographs and a location plan on the ground.
If the investor has only allocated land, then the main emphasis should be on a business plan, where the main parameters of work should be agreed upon (the number of car sales, the volume of services provided, etc.). The investor also provides financial guarantees to serving banks.
Most representative offices have a dealer network development manager. First you have to communicate with him. He will request more detailed information on some issues and then, if he is interested in the offer of a potential partner, he will visit a future dealer.
If the representative office is satisfied with everything, we will talk about the beginning of cooperation. The decision to open a dealership is made by the representative office or the authorized company-importer. At this stage, the parties can sign a protocol of intent, which will fix the procedure for the construction, opening, purchase of equipment, etc., the purchase of a batch of cars, a sales plan for a year, an advertising company, etc. Failure by a potential dealer to fulfill the obligations and deadlines specified in this protocol is a sufficient reason for refusing to cooperate with the manufacturer.
Such a protocol may not be signed. In any case, the legal basis for cooperation between the manufacturer and the dealer is the dealer agreement. The moment of its conclusion is different for different manufacturers. Often it is timed to the end of the construction of the auto center before its opening.
A typical car center includes an exhibition hall (the so-called show-room), a relaxation area for visitors, staff offices, a warehouse for cars and spare parts, and service.
The construction and equipment of a car center building takes on average about 1.5 years. Depending on the brand of cars and the scale of the center, the cost of construction ranges from 1.5 to 19 million dollars.
The automaker most often presents a set of requirements and wishes regarding the architectural plan, corporate design and selection of colors, equipment and tools, furniture. The dealer may be offered a choice of several manufacturer-certified equipment suppliers. The cost of equipment depends on the size of the technical center; say, Audi's average technical station for 25 jobs will cost an investor $ 450-500 thousand
As part of the manufacturer’s requirements, the dealer can take steps to optimize construction estimates. For example, in a car service, instead of expensive plunger lifts (about 6 thousand dollars each), you can put rack-mounted German (4 thousand dollars) or Italian (3 thousand dollars). In principle, you can equip the service with Russian lifts for 1-1.5 thousand dollars, if, of course, the automaker does not mind. Indeed, almost every step in the construction and equipment of the auto center of a solid world auto brand is consistent. Therefore, the risk of doing “something wrong” in the end is small for the investor.
When constructing a multidisciplinary auto center, an entrepreneur must take into account certain building standards, for example, body repair refers to harmful production, therefore there are requirements for remoteness from residential buildings.
For the implementation of car dealerships, it is necessary that the dealer company is entered in the commercial register (this is required both for the sale of cars, and for the sale of spare parts, etc.). A certificate of entry in the Moscow Commercial Register is issued by the Consumer Market Administration of the Moscow Region Administration. As for the car service, there you need to have Rostest certificates (www.rostest.ru) for certain types of work (pre-sale preparation, work on electrics, chassis, etc.).
Business process specifics
For each batch of cars, the dealer enters into a contract, which specifies the terms of delivery and price. A business process can be organized as follows.
1. purchase of cars in the country of manufacture.
The dealer purchases cars directly at the manufacturer's factory. He insures the car himself, delivers it to his salon and clears customs clearance (as a rule, for official dealers this procedure is simplified and takes about 1-2 days). In the car, cars undergo pre-sale training. Thus, the dealer has a full range of problems associated with the delivery of cars from the factory gates to the doors of their salon.
The average customs payment for a premium car is approximately 56% and is calculated on the purchase price at the plant plus transportation costs to the border and insurance (an approximate calculation can be made on the website www.tks.ru/auto/calc.shtml).
If the delivery of cars from abroad (in Europe) is organized on their own, then you need to either create your own delivery service or a full-fledged transport company, or rent a car transporter from other car dealers or transport companies (approximate rental price is 1800 euros per flight). The carrier must have a license for the carriage of goods in international road traffic, a license for an all-Russian customs carrier, a certificate of compliance with international standards Euro-2 and Euro-3.
Transporting a smaller number of cars on a “foreign” car transporter than its full capacity (7–9 pcs.) Will cost more, since the owners of the car transporter will be forced to understaff it with cars of other dealers.
2. purchase of cars from a Russian official importer.
Recently, there has been a trend towards centralized deliveries of machines to Russia by individual brands. In particular, BMW, Ford and General Motors switched to such a scheme. Volkswagen importer is expected to open in early September. In this case, the importer decides all issues with the transportation of cars to Russia and their customs clearance. "For the money" for the dealer, both options are approximately the same as a result. But for the beginner, the second option is more attractive.
Most often, manufacturers work with Russian dealers on the terms of 100% payment for shipped cars (Audi, Volkswagen, Toyota, Honda). If a manufacturer in the Russian market has an official importer with a warehouse common for all dealers, then the latter can take cars on the terms of a commodity loan (for example, BMW, Volvo, Opel, etc.). The dealer takes a batch of cars from the general warehouse and sells it within a calendar month. If at the end of the period there are unrealized cars left, then the importer pays interest on their value daily. After, say, three months, the dealer must redeem unsold goods. Therefore, a careful monthly calculation of the sales plan in this case is especially important.
Practice shows that the average annual sales volume from which the car dealer of a solid premium automobile brand starts is 250-450 cars per year. Less sales are not profitable. When calculating the implementation of cheaper car brands, an investor can take about 1, 000 cars a year as a guideline.
How many cars should be kept in stock?
First of all, it depends on the brand of the manufacturer. If he offers a wide range of models, then the dealer, accordingly, has to keep a lot of cars in stock, and vice versa. Practice shows that the dealer’s warehouse at any given time should have 2 times more cars than it is planned to sell in a month. That is, if the plan for this month is 20 cars, then there should be 40 cars in the warehouse.
Each manufacturer sets dealers prices. This takes into account the margin that the latter should receive for its development. Each manufacturer, of course, has its own margin size. However, now in Russia it is an average of 8-15% of the cost of the car. To attract customers, the dealer can take promotions to lower prices, but, of course, by reducing its margin.
With a clear implementation of the dealer plan, the manufacturer, as a rule, provides bonuses (of course, if specified in the dealer agreement). Moreover, it is important for the manufacturer to carry out precisely the model plan.
As for service in the auto center, the manufacturer regulates the repair technology and time standards for the performance of a particular job, the list of warranty work, the minimum set of spare parts stored in stock, etc. And their value is set by the dealer, focusing on the market. As for warranty work, the majority of cars delivered to Russia through official dealers of foreign cars have a factory warranty for 1 year. The dealer warranty is longer and is set by him. In this case, a contract is concluded with the client, in which the list of repair work is specified in detail (the guarantee, as a rule, does not include work on the “tin”, repair work performed on unauthorized services).
Return on investment in the auto business
The ratio of income from the sale of cars and the provision of services depends on the profitability and sales volumes of the selected car brand. Now the profitability of service work for most foreign cars is higher than their sale. In addition, much is determined by the policy of the investor: in the promotion of which of these two areas he invests more.
When calculating the return on investment in auto centers in the West, businessmen are guided by a profit of 2-3% of the turnover and return on invested capital of about 12-20%. Russian entrepreneurs are entitled to rely on large amounts, even despite a decrease in the profitability of the domestic auto business compared to the beginning of the 90s.
The approximate payback periods of a reputable official auto center for Moscow are about 3.5-4 years from the day the activity began.
If we talk about the profitability of foreign car dealerships, a lot depends on the characteristics of production capacities (car make, sales volume, number of lifts, list of service services, etc.). The increase in profitability is possible due to:
• increase the utilization rate of the service center. In companies that successfully operate in the market, it is approximately 0.7-0.8. At the launch stage, it is rarely more than 0.2-0.3;
• sales and installation of related products and accessories for the car: audio and video, alarm, anticorrosive, security systems, parking radars, refrigerators, etc .;
• providing customers with tuning services: tinting, aerodynamic packages, engine tuning;
• pendants, etc .;
• development of car sales on credit;
• development of the Trade-in system and the sale of used cars;
• car insurance and other insurance services.
However, the determining factor is still the personnel of the auto center. Without attracting strong specialists, the investor has practically no chance to “promote” the dealership.
Advertising company
The success of a car dealer is largely determined by the features of his marketing strategy and advertising campaign. The set of advertising media for all dealers is the same: outdoor advertising, radio, publications in the press.The advertising campaign of the auto center is coordinated with the representative of the manufacturer. The degree of freedom that it gives the car dealer when choosing carriers varies depending on the brand. In addition, representative offices conduct their campaigns, which include information about their dealers.
Practice has shown that the most successful advertising tools of Moscow car dealers are billboards and banners placed on major highways in prestigious areas of the capital. Moreover, outdoor advertising media located on the tracks at the places where automobile traffic jams are formed have the greatest effect. After all, if a person sweeps past a shield at a speed of 120 km / h, it is unlikely that he will even have time to realize the meaning of the information posted there. It’s a completely different matter when a potential buyer languishes in traffic, and his eyes run into professionally made advertisements. Another effective means of attracting attention to the dealer is the Internet site and advertising publications in the most reputable specialized automobile newspapers. The real return on the information posted on the site comes with minimal inertia (3-4 days).
The use of Trade-in programs helps to expand the circle of clients of the auto center. The scheme is simple: a client arrives at a car dealership with his old car. Salon experts evaluate the residual value of the car and draw up an act. Then, based on the act, the amount of the surcharge for the new car is determined. The car dealership receives the car deregistered in the traffic police, and the client immediately after paying the full difference in the cost of the car acquires a new one. An old car salon can be sold in the secondary market, guaranteeing its legal purity and providing potential customers with information about its technical condition. Note that in Europe, selling cars under the Trade-in scheme brings dealers more income than selling new ones.
Cars on credit
An effective tool for a dealer to increase sales is the sale of cars on credit, which is drawn up directly in the salon at the bank representative.
To start work on the car loan program, the dealer enters into a framework cooperation agreement with the bank, which describes the procedure for issuing a loan, the procedure for interaction between the parties and contains the forms of documents used in this procedure.
As a rule, a car dealership allocates one or more employees who oversee customers who want to buy a car using bank loans. It is better if the bank provides training for car dealership sales managers so that they can advise a potential buyer and, if necessary, carry out a preliminary calculation of the loan parameters.
After approval by the client’s bank, the car dealership issues a bill to the bank in the name of the buyer indicating the amount missing to pay the full price of the car. The bank checks whether this amount corresponds to the maximum limit that has been approved for the client.
After concluding a loan agreement, the bank transfers the funds to the account indicated by the car dealership in the payment invoice.
The bank fulfills all the buyer's obligations to the dealer, and only then charges the interest due from the latter. On the day the car is registered in the property, an insurance contract is also signed. The original TCP and a copy of the insurance certificate is transmitted to the bank through a representative of the car dealership.
The task of the car dealer is to interest the client in acquiring a car and bring him to the thought of obtaining a loan for purchase at a particular bank. The only way the dealer can help the buyer is to reduce his percentage on the car due to his margin, then buying a car from this dealer through a certain bank will become more profitable for the client.
Anton Sokolov
Source: Director-Info magazine No. 30'2003 08/18/2019