Garry Bartecki Must read: Dealers, we have an opportunity for you
Another year-end is approaching. But I’m not sure what to expect for next year.
Before we do anything further, I wanted to review the AI program we have made available to you.
Some of you must be thinking, WHAT IS BARTECKI UP TO NOW? Well, let me tell you.
The goal is to produce a dealer standard for investigating AI, to determine if your system and data can provide meaningful data to assist customers and improve internal processes and knowledge to do more with less, to determine how long it will take to implement a workable program, and finally, how much investment is required over what period, along with an estimated ROI to expect from this investment.
Can you see the benefit here? What you do with Connor Corp will become an industry-specific dealer program where you will find industry-specific answers and suggestions about using AI in a dealership. Since this is a no-cost program until you decide to move forward, you can contact Connor, and they will compile a file based on what they hear from dealers and address it in their monthly column in MHW. And don’t worry; no specific dealer will be identified in the column or during conversations with dealers. I suppose dealers representing a particular brand could assemble an AI group to discuss how their group could benefit from AI and, if so, have the OEM participate in the AI planning. All participants in the process are on the same page.
So please take advantage of this benefit for two reasons: 1. It will benefit your operation internally and externally when dealing with customers. 2. Going through this process will provide you with a path to assist customers who are going through the same process. In short, this would be a value-added benefit on your part.
So please give this a shot if you are investigating AI or have decided to move ahead based on your work to date. In either case, industry-specific findings will help reduce the cost of implementing AI and the time it takes to install it. I hope readers will provide input into the process so that other readers can benefit from their conclusions and findings.
To me, having a process to help me through this type of expenditure geared to my kind of business would be at the top of my list. I want nothing better than to be able to compare notes with other dealers to avoid costly mistakes. So please use Connor Corp, and let’s get the program going because it will make your life a lot easier regarding AI decisions.
On to another subject.
How about we review where we stand regarding inflation and deflation? Inflation is moving downward for certain products and services but is still above the 2% rate the Fed is looking for. In terms of inflation, James Altucher states we are suffering from a case of EconCovid because 40% of all money printed in the history of the US was printed in the six months after COVID-19 started in March 2020. Now you know where the inflation originated from. To contain and lower inflation, the Fed increased interest rates to reduce the funds and move them into banks to earn interest while slowing down borrowing to keep borrowed funds out of the money supply. Let me say that again: BORROWED MONEY CAN CAUSE INFLATION. I HOPE OUR RESIDENTS IN DC UNDERSTAND THAT.
Deflation is also something to consider because if we have a slowdown that causes increases in inventory levels, prices will fall, and margins will take a hit. These deflation hits will have to be offset with payroll reductions and general cost-cutting to try and make ends meet. However, another cause of deflation could pop up even if we avoid a recession. This deflation will result from new forms of technology that will produce INNOVATION, BETTER PRODUCTION, AND AUTOMATION that will lower costs and thus pricing while maintaining margins. How about that…. a good deflation.
With all that is happening, you can expect to deal with many variables in 2025 when planning for CAP-X, which contains technology, AI, and general production spending, no matter what industry you are in.
My brother was in the machine tool manufacturing business until they opened the gates to China. You can guess the rest. In any event, he always told me that YOUR COMPETITOR IS YOUR BEST ENGINEER. FIND OUT WHAT THEY ARE DOING AND DO IT BETTER. In other words, who is considered to have a better operation than yours? Then, do your homework to find out why customers feel that way, and “poof,” you have a list of issues to work with to catch up and overtake them in your market.
One last thing. I just finished reading Masters of the Air by Donald L.Miller. It covers the air war in WW2. This is an outstanding piece of writing, about 500 pages, that will personally impact you. It will make you cry, lose sleep, and maybe even come up with a nightmare or two. What we put those kids through is unbelievable. And they were kids…. flying B-17s. Give it a try….you will not forget it.
About the Columnist:
Garry Bartecki is a CPA MBA with GB Financial Services LLC and a Wholesaler columnist since August 1993. E-mail [email protected] to contact Garry.
