Car dealer steers a new online course for sales

START-UP car dealer Rockar is looking to steer the sector in a new direction by setting up in a major shopping centre and using mobile payment technology to drive the operation.

Hyundai showroomNC

Rockar’s pioneering showroom in the Bluewater shopping centre, Kent

For customers popping into Bluewater in Kent, with plans to splash out on a smart jacket or some silky lingerie, this means they could find themselves snapping up a new Hyundai motor too.

Rockar, sited just a step away from stores like M&S, is the first car sales company to harness the forces of mainstream retail and dovetail those with digital, says founder Simon Dixon, 49, who was inspired by the efficient way staff in Apple stores took payments.    

“We have turned the traditional car dealership process on its head,” Dixon, who has created 36 new jobs,explains.

“With our system and technology customers are in charge all the way. They make a tailored search based on their circumstances -  budget, mileage, deposit, can book a solo test drive, sell their old car, choose suitable finance, build a new one and track delivery. It is up to them whether they speak to one of our staff.”

But if as many of them choose to do, then in-store experts at Bluewater, Rockar’s ‘angels’, are on hand.

Each one has a small online terminal plugged into their smartphone or tablet for secure deposit transactions and sourcing other key financial information. Barclaycard Anywhere’s portable solution is designed specifically for small and mid-size firms.     .

“The flexibility and convenience we gain is very important for customer service. Angels aren’t tied to a till and they aren’t pushy sales people on commission, focussed on negotiation and pulling off a deal,” says Dixon.

Simon DixonPH

Rockar boss Simon Dixon

Angels aren’t tied to a till and they aren’t pushy sales people on commission, focussed on negotiation and pulling off a deal

Dixon

“Our product experts are immediately available and able to inform any customer coming in. We have positioned the cars to where people go naturally, rather than in locations where they have to make a specific journey. We also offer test drives and an all-makes service here too.”

Dixon launched Rockar almost five months ago, backed by £5 million private investment and putting down a £3 million future lease commitment. 

So far it has taken £1 million in sales and the company has a £9 million turnover target for its first year.

Feedback and trends analysis indicate the retail approach has scored well with women, who make up 60 per cent of in-store sales. They are younger, 37 years old, compared to the average national Hyundai customer who is 56. 

“In the first three months of trading we had 62,000 visitors, more than the Hyundai network for the whole period,” adds Dixon who has recorded a 92 per cent conversion to the brand.

Rockar also dented second hand car sales with 72 per cent of its customers saying they would have normally bought another used car. Forty-eight per cent also part exchanged their old car in a deal.

After three years of research and now armed with proof of concept, Dixon plans more shopping centre showrooms nationwide, each one featuring a different car manufacturer. But he faces a challenge.

“While customer research supports our approach, this poses a dilemma for manufacturers who have so much invested in supporting the existing franchise structure,” he adds. 

Development of the bespoke technology involved “some seriously complex system specification to ensure it was easy for customers.”

Barclaycard Anywhere’s payment solution came just at the right time, making transaction confirmations instantaneous and providing bigger picture data about trade performance, buying patterns and growth, he says. 

“The functionality is particularly suited to a medium-size company like ours with a mobile workforce of product advisers, staff, engineers and fitters.”  

Equity investor Seneca Partners Ltd also made a considerable contribution to getting Rockar off the ground. It took a 20 per cent stake, putting in £1 million, its investors using incentives available through the popular enterprise investment schemes (the EIS and SEIS) providing tax reliefs and spreading risk.

Seneca’s director Richard Manley said: “Rockar is led by a first class management team with vast experience in its sector. This, combined with its pioneering concept, was key for us in deciding to back the business.  

“We continue to see strong demand for the type of growth capital that we provide across all sectors.  Against this backdrop, EIS and SEIS have a crucial role to play in continuing to provide a route via which the SMEs can attract finance to support their growth.”

And for all his experience, Dixon, a motor trade veteran, says it was time outside the industry that most influenced the company’s service model.

“Being a customer, what they want when they buy a car,” he says, “understanding that perspective is the biggest thing I’ve learned and put into Rockar.” 

www.rockar.com <http://www.rockar.com> , www.barclaycardanywhere.co.uk <http://www.barclaycardanywhere.co.uk> www.senecapartners.co.uk <http://www.senecapartners.co.uk> 

[add with a sub head] Why cards stack up for smaller firms

Portable solutions, like subscription-based Barclaycard Anywhere, able to take secure payments on the spot can make a big difference to the bottom line of the smallest businesses such as mobile hairdressers, florists, taxi drivers and plumbers. 

But just 42 per cent of small firms currently offer a card option to customers, despite card use doubling since 2003. 

Almost 75 per cent of transactions are now made using debit and credit cards, although the majority of smaller firms (58 per cent) still can’t take them. 

Lack of the card option costs each firm one sale a week, the equivalent of £10,884 over a year. 

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