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Bikepoint = sharky tactics

Discussion in 'Businesses and Service Providers' started by oblongit, Apr 18, 2009.

  1. Hi Everyone,

    Directly relevant if you are a dealer etc.

    FYI and your thoughts on the following 'nasty' tactics by 'bikepoint', aka 'TraderGroup'/'ACP Media'.

    Personally, it's sharky moves on their part, removing existing functionality from bikepoint that make it harder for users and dealers alike to get value from the site.




    Email from the VACC (2009-04-15)


    Dear XX


    MID members have been listing their new and used motorcycles on popular internet advertising sites for some time now. Primarily, members have been paying their chosen advertiser a flat fixed monthly fee, or a fee per unit listed. In either scenario, the dealer always had a clear understanding of what their monthly advertising outlays would be.

    In addition, the internet advertising company also allowed the dealer the opportunity to clearly identify their business on the advertisement, and allowed contact details to be placed in the advertisement, thus enabling consumers to deal directly with dealers.

    VACC understands that some internet advertisers have now changed their billing model to a “leads†based model, with each lead incurring a $20.00 to $25.00 fee, depending on whether the stock listed is a used motorcycle or a new motorcycle.

    VACC also understands that under the new arrangements, dealers are being prevented from showing their identity and providing their contact details, with the result being that all leads are forcibly channelled through the advertisor, prior to receipt by the trader, thereby attracting a lead fee.

    VACC wishes to advise you that these leads based pricing models are typically not capped and have the potential to severely impact your advertising budget and cash flow. Under this type of lead generation model you, as the dealer, have no control over the quantity of ‘hits’ responding to your listings and therefore the charges applied. Each hit, whether it is a genuine enquiry or not, generates a fee.

    For example, a dealer previously may have advertised his total stock (say 30 used motorcycles) on a flat fee model, for $400.00 per month. Using the leads based pricing model, if these same 30 motorcycles each received 5 internet ‘hits’ each for the month, irrespective of if they were genuine or not, this would generate a total of 150 ‘hits’ costing $3,000 (150 x $20 per hit), or over a 700% increase on the flat fee, previously paid.

    The type of advertising that dealers utilise, and the amount they wish to pay, is entirely a decision for each individual business. If, however, you choose to utilise the lead generation based internet advertising, you should be aware that this method of advertising can significantly increase your advertising costs and effectively remove your ability to control your advertising expenses, the outcome potentially could have a negative impact on your profitability per motorcycle; your overall profitability and cash flow.

    It is strongly recommend that you speak with your internet advertising sales representative to determine the exposure you may face, and then take steps to install strict controls over the uncapped fee structure.

    Please call me on: 9829 1146, if you require any further clarification.

    Yours sincerely

    Division Manager
  2. How long before they employ someone to generate a few 'hits'?
  3. Typically, the only information about the "dealer" is that the LMCT number is displayed in the contact information.

    It makes it a pain when searching for a bike/car/etc...

    I've started to doing a google search on the LMCT number to see what dealer and where they are.

    If you do send a website enquiry about the vehicle, the site will generally send you a "follow-up" e-mail to rate the service that you received.
    Ford Towcommand Picture
  4. With the LMCT number handy, you can go to the site that lists LMCT's and find the dealer and go direct anyway...
  5. Yep, and BikePoint/BikeSales charges the Dealer between $20-30 dollars per email or 'lead'.

    Imagine you get 5 emails a day, for a week, that's 35 'leads' a week at a minimum of $20 each. Times four weeks and that's $2800 per month. Not bad compared to the old monthly flat fee of $400.

    Killer is, as a dealer you can not control how many 'leads' you receive.

    Oh, and the new upload software (http://www.autogate.com.au/) is ultra restrictive (e.g. can't enter a phone number/email into text fields).

    In short, its nasty :(
  6. Yeah I was speaking to a dealer who told me that they have indeed changed their pricing model and he was concerned at the impact that it was going to have on his business.
  7. The system has been the same for cars for a while.
    It is of course totaly designed for them to make money which is why you cant have any dealer details on the add.
    even the photos are not allowed to have sinage in them.
    Some dealers will just not advertise here anymore especially if they have a large number of bikes.
    It makes it very frustrating when you contact a customer who is just looking around on the net and keeps clicking buttons.