8:33 am, March 29, 2023
Fresh from celebrating 100 years of trading last year, Manheim Auction Services is reaffirming its pledge to offer outstanding customer service and choice for dealers.
One such example is its introduction of a hybrid sales programme for its nationwide auction sites in September 2021 to give greater flexibility to dealer customers.
During the high-point of the Covid-19 pandemic, Manheim, like all all auction firms, moved to an online selling operation.
As soon as it was safe and responsible to do so, Manheim then began to ‘dip its toe’ into physical auctions again, according to Manheim Auction Services’ managing director – wholesale, Liam Quegan.
‘We initially thought that a return to physical operations would be for older vehicles where customers might want to see the vehicles they were interested in buying,’ Quegan told Car Dealer in the video posted at the top of this story.
‘However, as we spent more time testing and learning, we began to understand that this service was really valued from a wide cross section of our customers.
‘As we moved forwards through the pandemic and the level of risk started to rescind, we thought it was important to give choice to our customers.
‘So, in September 2022, we moved to a position where most of our sales in the UK offer this mixture of online capability and physical where buyers can come and see the cars in the lanes.’
Quegan explained that pre-pandemic Manheim Auction Services would sell around a quarter of its vehicles online, but now it’s over a 50 per cent.
The days of 75 per cent of vehicles being sold in the lanes are over, though. ‘That ship has sailed,’ said Quegan.
‘[The hybrid model] is going really, really well.
‘In a lot of ways we have seen a return to some of what we saw pre-pandemic, which is energy in auction lanes. We see very vibrant sales at some of our locations with large numbers of buyers.
‘But we still see the majority of our vehicles being bought online, which was very different to pre-pandemic levels.
‘So, it’s been a learning process – we really wanted to provide choice for our customers and I think that’s what we’re doing.’
This hybrid approach is one that it’ll be here for the long run, said Quegan.
‘Physical retains its need within the various ecosystems that we operate in. However, I do think that online will be the most relevant channel over a long time.
‘I would imagine over time we’ll see a shift towards more and more online, but there’s certain things that have to happen for that to be the case.
‘We have to improve our online experience; for example, we have to improve imagery, improve the calibre of some elements of our inspection reporting as online it’s all about building trust and building credibility.
‘I think we already do a good job of that, but we need to do better.’
Quegan concluded: ‘I still think there will be a place for physical – I wouldn’t like to draw a timeframe but I still think customers want choice.’
In the video Quegan also discussed:
– The impact of hybrid sales on stock performance
– What makes Manheim Auction Services different from its competitors
You can watch the full interview by clicking the video at the top of this story
