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A Conversation with Kieran TeeBoon, Marketplace Director at Dealer Auction
Q: Kieran, in your experience, what’s the biggest misconception retailers have about rebates in the remarketing space?
Kieran TeeBoon: The most common misconception is that rebates represent easy money. Retailers believe that by getting a rebate upfront, they’re adding to their profit margin. But in reality, it’s a false economy. When I was Head of Business at a Toyota dealership in the Listers Group, I always wondered why some competitor groups consistently outperformed us. Now that I’m on the other side of the fence, I can see why – they weren’t relying on rebates to prop up their performance.
In fact, so far this year vehicles sold on Dealer Auction have achieved 6% more on average when compared to traditional remarketing routes. So, while retailers might pocket a rebate, they’re often losing far more in missed profit.
Q: So how exactly does this false economy of rebates impact retailers’ bottom line?
Kieran: Think about it: that rebate you receive doesn’t come from thin air. It’s built into the buyer fee, meaning buyers pay less for your stock. Essentially, you’re paying for your own rebate because the sale price of your vehicles is lower. It’s a bit like selling paint protection at cost price in your showroom – why would choose to miss out on that revenue? Yet, many retailers are willing to break even or make a loss on their trade stock, simply because they’re hooked on the idea of rebates.
Q: With rising costs across the board – staffing, energy, reduced margins – how important is it for franchise retailers to rethink their approach to remarketing?
Kieran: It’s more crucial than ever. Every line on your accounts needs to work harder, and that’s exactly what successful retailers are doing. It’s about optimising every opportunity. Dealer Auction is being used by the majority of upper quartile franchise retailers – so if you’re not using it, you have to ask yourself, why? There’s no reason to settle for just breaking even on trade stock.
Q: Space and resource can sometimes be a challenge with digital remarketing. How are your customers overcoming this?
Kieran: I get it – managing space and resources is always a concern. But here’s the thing: in the 72 hours it takes a physical auction house to collect your vehicles, you could have appraised them, listed them on Dealer Auction, sold them, and had them collected – all while gaining up to 6% more. Call it a ‘digital-first’ strategy. If it doesn’t sell by the time it’s due to be collected you’ve lost nothing. But why not maximise your chances of profit first?
Q: Any final thoughts for retailers still holding on to the rebate model?
Kieran: The truth is, it’s rare you get anything for free in this life. Yes, digital remarketing takes some focus upfront. But the rewards are tenfold – faster sales, better prices, and a leaner, more profitable operation. The rebate may seem tempting, but the real profits come from embracing digital-first strategies and optimising every sale.