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WO2007002680A2 - Systeme et procede pour commander, distribuer et acheter des marchandises de gros et interactions associees - Google Patents

Systeme et procede pour commander, distribuer et acheter des marchandises de gros et interactions associees Download PDF

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Publication number
WO2007002680A2
WO2007002680A2 PCT/US2006/025009 US2006025009W WO2007002680A2 WO 2007002680 A2 WO2007002680 A2 WO 2007002680A2 US 2006025009 W US2006025009 W US 2006025009W WO 2007002680 A2 WO2007002680 A2 WO 2007002680A2
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Prior art keywords
vehicle
namx
wholesale
market
dealers
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PCT/US2006/025009
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English (en)
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WO2007002680A3 (fr
Inventor
Wess Eric Sharpe
Eric Burton Schorvitz
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Namx, Inc.
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Publication date
Application filed by Namx, Inc. filed Critical Namx, Inc.
Publication of WO2007002680A2 publication Critical patent/WO2007002680A2/fr
Publication of WO2007002680A3 publication Critical patent/WO2007002680A3/fr

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    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q30/00—Commerce
    • G06Q30/02—Marketing; Price estimation or determination; Fundraising

Definitions

  • the invention relates generally to the wholesale good industry, and, more particularly, to a system and method for control, distribution and purchase of wholesale goods and related interactions. b. Description of Related Art
  • the depreciation in dealer to consumer sale prices of used vehicles also affects the amount dealers are willing to pay consumers on trade-ins of used vehicles, further decreasing the consumer's purchasing power for new vehicles sales and creating an unfortunate cycle of depreciation.
  • Dealer trade system One existing e-commerce based system that leverages the existing dealer structure for improved distribution of new vehicles is the electronic dealer trade system developed by vehicle manufacturers. Using this system, dealers can locate vehicles at other dealers (or in production for, or transit to, other dealers) and initiate a trade. Dealer trade systems, however, are disadvantageous because they consume significant time of the dealer that may turn out to be a wasted effort — there is no certainty the dealer will be able to obtain the vehicle they have located, much less at a desired price (no price mechanism exists in the dealer trade system). Arranging trades can also be difficult because one dealer (the dealer with the vehicle) is typically in a much better negotiating position than the other dealer (the dealer who wants the vehicle).
  • the invention provides, for example, a system and method for distribution of wholesale goods, controlling dealer/consumer interaction, tangible good valuation, inventory control, facilitating the sale of a tangible good through an auction process, and generally, a system and method for control, distribution and purchase of wholesale goods and related interactions.
  • FIG. 1 is a diagrammatic view of a system for distribution of tangible goods in accordance with the present invention
  • FIG. 2 is a diagrammatic view of a component of the system of Fig. 1;
  • FIG. 1 illustrates a system 20 for distribution of tangible goods in accordance with the present invention.
  • System 20 is particularly adapted for use in distributing types of goods that are tangible (i.e., have a physical structure) and in which each of the goods is unique in some way.
  • system 20 is adapted for use in distributing vehicles such as automobiles. Vehicles are unique in that each vehicle has a unique vehicle identification number (VIN) that allows information about the vehicle (e.g., prior repair history, ownership history, etc.) to be tracked.
  • VIN vehicle identification number
  • System 20 is particularly adapted for these types of goods, however, it should be understood that system 20 may be used for distribution of a wide variety of tangible goods.
  • System 20 includes a computer system 22 or central computing architecture.
  • System 22 includes one or more microprocessors configured in accordance with the present invention by programming instructions (i.e., software) to perform one or more of the functions described herein.
  • system 22 establishes an electronic wholesale marketplace for a type of tangible good in which wholesalers can sell and purchase the goods and further establishes an electronic freight marketplace for the goods in which freight haulers can accept contracts for the transport of the purchased goods.
  • system 22 is designed to allow a variety of participants to interact with the wholesale marketplace and the freight marketplace including dealers 24, remarketers 26 (e.g., in the case of vehicles, rental car companies, corporate and government fleet owners, leasing institutions, etc.), freight haulers 28, manufacturers 30, financial institutions 32, and third party product and service providers 34 (e.g., third party inspection services, storage and distribution services, auctioneers, information providers, etc.).
  • dealers 24, remarketers 26 e.g., in the case of vehicles, rental car companies, corporate and government fleet owners, leasing institutions, etc.
  • freight haulers 28, manufacturers 30, financial institutions 32 e.g., third party inspection services, storage and distribution services, auctioneers, information providers, etc.
  • third party product and service providers 34 e.g., third party inspection services, storage and distribution services, auctioneers, information providers, etc.
  • server refers to a computing device coupled to a network and configured by programming instructions (i.e., software) to provide services to other computing devices (including other servers).
  • programming instructions i.e., software
  • FIG. 2 the architecture of each , server 5b, 38, 40 may be described as a series of layers including an operating system layer
  • the operating system layer 44 of each server 36, 38, 40 may include a conventional operating system such as one of the operating systems sold under the registered trademark
  • Linux or UNIX operating systems or operating systems for the Apple computer system e.g.
  • OS X may alternatively be used.
  • the database layer 46 is configured to provide a static and dynamic contact structure for each server 36, 38, 40.
  • Database layer 46 is used to provide both intermediate information while each server 36, 38, 40 executes operations and long-term storage of data.
  • Database layer 46 may employ a database management system (DBMS) such as the DMBS sold under the trademark "SQL SERVER” by Microsoft Corporation of Redmond,
  • DBMS database management system
  • the application layer 48 is configured to communicate with and between database layer 46 and interface layer 50 and configures the server 36, 38, 40 to perform the functions described in greater detail hereinafter.
  • Application layer 48 may be implemented using conventional software development components and may further include a combination of
  • JavaScript JavaScript, VB Script and ASP (Active Server Pages) and other conventional software components to provide required functionality.
  • ASP Active Server Pages
  • Interface layer 50 provides a graphical and communications interface between the servers 36, 38, 40 and between the servers 36, 38, 40 and supercomputers 42 and the computing devices used by dealers, remarketers, freight haulers, financial institutions and third party service providers. Interface layer 50 may be configured to be extensible Markup
  • XML XML
  • SOAP Simple Object Access Protocol
  • servers 36 may comprise web servers or application servers running application server software (and/or a combination of the two).
  • Servers 38 may comprise database servers running database server software that provides database related services—including access, retrieval from, and storage to databases 52 ⁇ to servers 36,
  • databases 52 may include information relating to the market participants.
  • databases 52 may store information about each participant such as business entity information (name, addresses, identification information, SIC classification, etc.), contact information (identification of primary contacts and their titles, phone numbers, email addresses, etc.) authentication information, relationships (e.g. linking dealers by a shared characteristic such as common ownership), controls on marketplace participation (defined by the dealers 24 themselves or by manufacturers 30, financial institutions 32, etc.), licenses, insurance coverage, etc.
  • Databases 52 may also include valuation information used in valuation of the goods.
  • databases 52 may include information regarding specifications for the goods and each dealer's labor rate for repair of the goods (flat rate based on type of repair or time-based (hourly) rates) to assist in providing a proper valuation, and estimated time for repairing predefined defects in the goods (e.g., a cracked windshield in a vehicle).
  • Databases 52 may also include information about previous marketplace transactions for each good.
  • the above examples of the type of information stored in databases 52 are not meant to be exhaustive, but rather illustrative. It will be evident from the subsequent description that databases 52 will hold a wide variety of information for use by system 22.
  • Servers 40 and supercomputer 42 may be used to provide distributed computational resources within system 22 and to perform intensive computational and processing functions.
  • Supercomputer 42 may comprise a computing device including a plurality of microprocessors configured to engage in parallel processing such as those offered for sale by IBM Corp or Cray, hie.
  • Servers 40 and supercomputers 42 may be arranged in any of plurality of distributed computing architectures such as a two-tier (client-server) computing architecture, or a multi-tier (n-tier) computing architecture, or a grid computing architecture or a peer-to- peer computing architecture.
  • Servers 36, 38, 40, or other servers may also perform conventional distributed computing functions such as load balancing among the servers 36, 38, 40.
  • Servers 36, 38, 40 and supercomputers 42 communicate with one another over a telecommunications network 54.
  • Network 54 may, for example, comprise a local area network (LAN) or wide area network (WAN) and may comprise an intranet or an extranet and may utilize the public internet.
  • An enterprise service bus (ESB) may be used to control communications (including messaging and routing) over network 54 between servers 36, 38, 40 and supercomputers 42.
  • the marketplace participants including dealers 24, remarketers 26, freight haulers 28, manufacturers 30, financial institutions 32 and third party product and service providers 34— will use a variety of computing devices to connect to system 22 over a telecommunications network 56.
  • These devices may include, for example, local servers 58, wireless access points (WAPs) 60 and personal computers 62 such as desktop or laptop computers and handheld computers such as personal digital assistants (PDAs).
  • Network 56 preferably includes the public internet and may include both wired and wireless networks.
  • freight haulers 28 or other market participants that may be located remotely from wired computers or sites may invoke cellular, satellite or other wireless technologies as part of network to enable communication of their computing devices with system 22.
  • Servers 58 may comprise webs servers or application servers or a combined web/application server. Servers 58 may provide a variety of functions depending on the application. In accordance with one aspect of the invention, however, servers 58 may be configured to communicate with an inventory management system 64 for a dealer 24 of tangible goods (e.g., a vehicle dealer's DMS system) for inventory control. Server 58 may receive information pertaining to the dealer's inventory from system 64 and provide it to computer system 12.
  • an inventory management system 64 for a dealer 24 of tangible goods (e.g., a vehicle dealer's DMS system) for inventory control. Server 58 may receive information pertaining to the dealer's inventory from system 64 and provide it to computer system 12.
  • Wireless access points (WAPs) 60 are provided to enable communication between wireless computing and communication devices and may comprise conventional structures known in the art. For example, WAPs 60 may be used to allow inspectors to inspect the goods located at dealerships (e.g. outside storage lots) or other locations lacking access to a wired network and to send information to and receive information from system 22.
  • Personal computers 62 are provided to perform a wide variety of functions, many of which are described hereinafter, depending on the market participant. Personal computers 62 may function as client in a client-server configuration with servers 36, 38, 40 of system 22. In particular, computers 62 may run client software to access system 22 such as an internet browser (in the case of a web-based application) or a customized graphical user interface.
  • Servers 58, WAPs 60 and computers 62 may communicate with one another at a market participant's location or locations over a private telecommunications network 66 such as a local area network (LAN) or wide area network (WAN). Servers 58, WAPs 60 and computers 62 may further communicate with system 22 through network 56. Again, an enterprise service bus (ESB) may be used to control communications (including messaging and routing) over network 56 between servers 58, WAPs 60 and computers 62 and system 22.
  • ESD enterprise service bus
  • system 20 While the remaining architecture and operation of system 20 is described in copending application titled "System and Method for Distribution of Wholesale Goods," as briefly discussed above, the present application will describe specific operations of system 20, for example, for distribution of wholesale goods, controlling dealer/consumer interaction, tangible good valuation, inventory control, facilitating the sale of a tangible good through an auction process, and generally, for control, distribution and purchase of wholesale goods and related interactions.
  • PREFACE System and Method for Distribution of Wholesale Goods
  • NAMX looks at the entire value chain. To use the industry jargon, it uses a systems engineering approach to taking out cost and adding value. And it does this for everyone in the industry. My advice to dealers is to take a good look at NAMX and give it a shot. This is not an OEM program; it's not being driven by some large dealer group. It is a member-regulating business backed by an impressive list of investors, advisors, and staff of auto industry veterans. Not only does it have the potential to grow the dealer business, I believe that NAMX will grow the entire new and used vehicle markets. "
  • NAMX is the first time anyone's taken a complete systems approach. It will optimize the system from the time the car leaves the factory all the way through the wholesale and retail and re-marketing processes. That will provide a significant cost reduction, and anything that improves the efficiency of the system will make cars more affordable and dealers more profitable.
  • Dr. Cole co-founded the office for the study of transportation (OSAT) in 1978, serves on the board of directors of the Automotive Hall of Fame, and is active in the Society of Automotive Engineers, serving two terms a director.
  • Dr. Cole is a recipient of the NADA International Freedom of Mobility Award and was chosen to receive Sweden's Order of the Polar Star. Additionally, he received the 1998 Rene Dubos Environmental Award for his contributions to industrial ecology.
  • Dr. Cole and the Center for Automotive Research conducts premier industry conferences and forums such as the management briefing seminar and manages the automotive news world congress.
  • Dr. Cole is a NAMX advisor. "The NAMX systems are immediately appealing because they will bring order and efficiency to the automotive market without squeezing anyone.
  • NAMX will be transformational. I have never seen a system or business process that promises to generate the kind of economic wealth that NAMX could deliver.”
  • NAMX He's the first person to be able to see and understand how to do this. Only someone with his experience, someone who has lived it, could see the magnitude of opportunity that exists here.
  • One of the most important aspects of NAMX is it will result in higher asset utilization for all involved, without them needing any additional investment in physical equipment or properties.
  • one of the keys to the dealer business is inventory turn-over. Imagine if NAMX helps a dealer turn its inventory every 40 to 45 days, versus someone outside of NAMX taking 60 to 90 days. It's going to help their ROI, their profitability, and their customer satisfaction. I don't see any risks to this business model, only benefits.”
  • Mrs. Keller was with Furman SeIz (ING Barings), where she served as the firm's lead auto analyst since 1986. Prior to Furman SeIz, she was portfolio manager with Vilas-Fischer Associates from 1983 to 1986, and served as the lead automotive analyst with Paine Webber from 1980 through 83. She was Kidder Peabody's automotive analyst from 1972 to 1980. Keller was named the industry's top auto analyst six times during her career. Mrs. Keller has written two automotive industry books and was awarded the Eccles Prize by Columbia University for excellence in economic writing. Mrs. Keller currently serves on the board if Lithia Motors Inc. (8 th largest dealer group) as well as Thrifty Automotive and previously served on the board of Sonic Automotive (3 rd largest automotive group).
  • NAMX will greatly reduce the time and cost needed for dealers to learn about wholesale price. I think this will grow the market and help dealers do what dealers do best: provide a wide range of choices to consumers. As we've seen elsewhere, consumers will pay a premium for increased choice.”
  • Dr. Hall earned his Ph.D. in economics from the University of Chicago and served at the Federal Reserve Bank before joining Yale University. He has been honored as an Alfred P. Sloan Research Fellow at MIT and by the National Science Foundation for work on "Empirical Models of Inventory Investment and Price Determination by Durable Commodity Intermediaries". Dr. Hall was awarded a University of Chicago Century Fellowship as well as the Joel Dean Prize (for best honors thesis in economics) at Oberlin College in 1989. While at the Federal Reserve and at Yale University, Dr. Hall has been published as the co-author of studies specifically concern automobile inventories. "When I first heard about NAMX I thought it was a preposterous concept. But you just can't capture it the first time around.
  • Mr. Loshin is recognized as an authority in consumer vehicle leasing and automobile finance. He is the co-author of the only two books devoted exclusively to the technical requirements of the vehicle leasing business: The Automobile Lending and Leasing Manual (1989), as well as the Essentials of Consumer Vehicle Leasing (1985). Mr. Loshin is an expert in lease program design, securitization, portfolio sales and acquisition, and credit and residual risk management. Mr. Loshin convened The National Lessor Roundtable, now the Association of Consumer Vehicle Lessors, whose members include virtually all vehicle lessors. Loshin represented the principal segments of the auto industry in developing an industry-backed leasing bill, the New York Motor Vehicle Retail Leasing Act, 1994.
  • NAMX is the most exciting new business plan I've seen in a long time. It is the classic example of how to maximize market efficiency. There is no question it will grow the new and used car market, because everyone selling cars will make more money and everyone buying cars will save more money. This reminds me of how the NASDAQ started, taking advantage of a new electronic infrastructure to make a more efficient market. My only question is, "How can I invest?"
  • Dr. Soley was the original Technical Director of the OMG and serves as a valuable resource for a broad range of topics: from predictions and trends in the industry to the nuts and bolts of CORBA implementations as well as the OMG technology adoption processes.
  • Dr. Soley was a cofounder and former Chairman/CEO of A. I. Architects, Inc., maker of the 386 HummingBoard and other PC and workstation hardware and software.
  • Dr. Soley has consulted for IBM, Motorola, Texas Instruments, and others.
  • OMG is a not-for-profit consortium that produces and maintains computer industry specifications for enterprise applications. The OMG worldwide membership includes virtually every large company in the computer industry.
  • NAMX "It is about time that someone truly understood the automobile transportation, wholesale, and retail parts of the automotive industry and provided practical solutions to very old and large problems that dealers cope with everyday. Clearly, NAMX has left no stone unturned... the insight and solutions are huge. In fact, NAMX will provide dealers with so much value in so many different ways that I am hard pressed to focus on just one component. Imagine if the only way to communicate was the pony express and then one day, all of the sudden, everyone had a telephone and email. For dealers, vehicle inventory impacts every part of vehicle retail sales. Because NAMX will enable cheap and fast vehicle wholesale to the highest demand as well as instant access to the vehicles our customers want at the push of a button, NAMX will vastly improve the retail process. I strongly believe that NAMX will lower cost and help dealers sell more cars with less effort and risk. I also like the fact that NAMX is structured as a membership association, kind of like a co-op for dealers.”
  • Mechling received an automotive graduate scholarship for conducting market research on behalf of General Motors in 1976. As a result, he began his career at the OEM level with Toyota and Ford. For the last 20 years, Mechling has been a franchise dealer general manager and dealer principal.
  • NAMX is "the future of automobile retail”. It will force all vehicle inventories to the right place. It will enable customers to get what they want. It will improve customer satisfaction and dealership productivity. In fact, I cannot think of a single cost in the vehicle retail process that NAMX will not reduce, a single revenue stream that NAMX will not increase, nor can I think of any reason why every dealer and dealership management team would not use NAMX every day.
  • Mr. Brown is responsible for the day-to-day operations of Gwinnett Place Honda, one of the top five Honda dealerships in the United States. He has over 33 years of experience in automobile retail and has served for the Hendrick Automotive Group (7 th largest automotive group) for over 18 years.
  • the franchise dealer system serves five primary functions:
  • the used vehicle trade-in has radically enhanced growth in every part of the industry. Despite the clear relationship between used vehicle value and all vehicle sales, the used vehicle remains an underestimated component of industry growth.
  • maximum used vehicle value decreases ownership cost for the vehicle being purchased based on maximum future resale value.
  • maximum value can be measured by the increase of consumer's wealth, i.e. his or her ability to buy. Whether measured by lower ownership cost or increased wealth, higher used vehicle values will increase vehicle sales for every dealer and carmaker. Based on factors such as multiple year models, mechanical readiness, cosmetic condition, and mileage - the challenges of used vehicle inventory are even greater than new vehicle inventory.
  • Dealer (A) has a new vehicle (invoice $21,000) that has been in-stock for 90 days with an established wholesale price currently at $20,600.
  • Dealer (B) has a customer for that specific vehicle but does not actually have the vehicle.
  • Dealer (B) offers $20, 700 to all dealers that have that specific vehicle in-stock.
  • dealer (A) quickly accepts the offer.
  • the specific vehicle is worth more than the $20, 700 to dealer (B) while $20, 700 is worth more than the specific vehicle to dealer (A).
  • supply has moved to higher demand while dealers (A) and (B), the carmaker, and the customer are all far better off.
  • manager To search and locate the vehicle needed, a manager will simply enter the vehicle criteria into the dealer trade system. In response, the system will provide a list of exact or close matches. While some systems require the initiating manager (A) to call the other managers (B), others systems include electronic messaging for trade requests. Either way, manager (A) will experience difficulty and frustration contacting other managers (B), While the list includes dealer cost information, the list does not show if the other managers (B) are willing to wholesale the vehicle and if so, at what price. Assuming that manager (A) is able to contact managers (B), manager (A) is in an extremely poor negotiating position. After manager (A) finally contacts and completes a trade with manager (B), manager (A) must arrange freight among other tasks that consume precious time.
  • dealer trade Since the need for dealer trade is almost always at the same time when managers (A) and (B) have no time to spare, the system is found to be very arduous indeed. In reality, dealer trade is designed more for government projects than automobile retail, which is especially true for high volume dealerships.
  • auctions are probably the foremost vehicle reconditioning practitioners in the world, manage more titles than any other entity in the world, and marshal more used vehicles than any other entity in the world while providing intermediate distribution points between supply and higher demand. Furthermore, some auctions provide commercial finance (floor plan) services for independent dealers, thus assisting independents with buying trade-ins from franchise dealers, thereby improving all vehicle values.
  • the wholesale market also services vehicle remarketers such as carmakers, finance and lease institutions, corporate as well as government fleets, and rental car companies that collectively wholesale more than 8 million used vehicles in the U.S. annually.
  • vehicle remarketers such as carmakers, finance and lease institutions, corporate as well as government fleets, and rental car companies that collectively wholesale more than 8 million used vehicles in the U.S. annually.
  • remarketers seek the highest wholesale price for their vehicles in the shortest period of time at the lowest cost.
  • the auctions provide a critical link and services between the remarketers and dealers who ultimately retail those used vehicles to consumers.
  • the auto auctions provide a massive amount of value to the industry with their auctioneering and secondary services. 028 I Automobile Wholesale Formats
  • the used automobile wholesale market consists of dealers, remarketers, brokers, and wholesalers that currently interact in three basic formats of trade to enable used vehicle to higher demand:
  • the auction format is clearly the best available, hence the 9.7 million auction transactions in 2004 or about 41 percent of the estimated 24 million used vehicle wholesale transactions nationally. While the individual format costs less up front and is usually faster, auctions enable secure settlement, easier freight, commercial finance, and vehicle arbitration. Because the auction enables multiple buyers as compared to the individual format as well as less risk, the auction is by far more likely to move supply to higher demand and thus, will almost always enable higher net proceeds. The individual format is also fraught with malfeasance, which the auction tends to thwart. As will be described in greater detail presently, the electronic format holds the greatest promise but is currently generations away from adoption and maximizing used vehicle value. In comparison, the auction enables physical inspection of the used vehicle among other advantages, thus, enabling buyer confidence that translates into higher prices.
  • the auction format would outperform the individual and electronic format.
  • the same component (physical location) that enables auction value likewise reduces its value.
  • the greatest downside of the auction process, especially for dealers, is the transporting a vehicle to the auction before it is sold. Adding to the time of arranging freight to and from an auction, buyers and sellers must typically travel to the auction themselves, generally the day prior. Once they arrive at the auction, they check-in and then sellers will attempt to sell their vehicles to relatively few buyers while buyers will attempt to buy vehicles from relatively few sellers. While the physical location enables buyers and sellers to gather, the associated cost, time, and risk also limits the amount of potential interaction while forcing an inefficient price mechanism.
  • the bidding is open to buyers that bid up the price until the bidding has paused for a period of time that brings the auctioneer to conclude the bidding; otherwise known as dropping the hammer. Consequently, the winning bidder pays the last price bid if the seller accepts the price. If the event is announced as absolute, the seller must sell at the last price bid.
  • the "winner's curse" contends that bidders at an auction are dubious regarding the exact value of products being sold and thus, they are guessing. Assuming bidders have reasonable information about product value, the average of ail the guesses is most likely to be correct. Therefore, the winning bidder has paid the price furthest from actual value, according to the winner's curse it is the highest value possible.
  • the average cost of each vehicle sold at the auction is approximately: $184 employee cost, $260 travel cost, $300 freight cost, $70 of no-sales fees, $144 depreciation, $40 of interest, and $300 of buyer and seller fees.
  • the sub-total per vehicle wholesaled is: $1 ,298.
  • the auction cost calculations assume a $10,000 average vehicle value and exclude the costs of vehicle inspection, reconditioning, or other services such as title transfer, floor plan administration, draft fees, etc. Those costs are too vague and/or transaction specific. Of course, some sellers and buyers experience lower auction costs while others experience higher costs. On average, NAMX calculations are conservative. In fact, evidence suggests that the costs are significantly higher and several firms in the industry contend that the costs exceed $2,000 per vehicle. In total, the cost of the auction ($1 ,690 multiplied by 9.7 million) is approximately $16.3 billion in the U.S. market alone. Regarding the individual format, NAMX calculates roughly 14 million transactions valued at $8,000 each with a per transaction cost of approximately $50 for freight, $100 for administration, and $150 for human resources or about $4,2 billion total.
  • NAMX estimates that an optimal format would increase vehicle value by about 2 percent or $2 billion versus the auction format and by at least 10 percent or $11 billion compared to the individual format. In total, NAMX estimates the opportunity in used vehicle wholesale to be at least $33.5 billion in the U.S. market.
  • the auctions have also added live video, which enables buyers to bid on vehicles in real time with a personal computer and Internet connection, thereby increasing the likelihood of supply moving to optimal demand while simultaneously reducing interaction costs.
  • live video of auction activity is probably the greatest auction improvement ever.
  • Adesa the second largest chain with 53 used vehicle and 28 salvage auctions raised approximately $150 million to improve their market technology while most of the other auction companies are improving as well.
  • carmakers also act as remarketers, some carmakers have chosen the electronic systems provided by auctions, some have chosen the electronic systems provided by entrepreneurs, some have built their own system such as www.gmonlineauctions.com, and many have simply chosen to utilize combinations of the above, which is also true for other remarketers such as car rental firms.
  • EBM electronic business market
  • an intermediation market In seeking to match the needs of sellers and buyers, the intermediation market must be easier to use while requiring less time and cost than the traditional market.
  • buyers and sellers In an electronic market, buyers and sellers usually lack an established relationship while the physical inspection of products and/or services is not possible. As such, an intermediation market must enable perfect or at least greater confidence than the traditional market rather than less. If an intermediation market is successful in providing those components, buyers and sellers will most likely accept the market, otherwise they will not. As more buyers accept the market, the market will become more valuable to the sellers. As more sellers accept the market, the market will become more valuable to the buyers. While the amount of sellers and buyers needed for critical mass may not be as much as one might imagine, an intermediation market must enable seller and buyer acceptance at the same time, i.e. bilateral acceptance, which requires the aforementioned advantages over a traditional market. Due to the nature of electronic markets, gaining the advantages and bilateral acceptance is truly a challenge.
  • Covisint Adding to Covisint's misguided attempt at creating a new market, they included a buyer-side mechanism where carmakers would send out their need for component production in the purported exchange for bid and the suppliers would invest the toil to establish a price and then respond. Because that buyer-side mechanism did not force acceptance of the lowest bid, carmakers would simply use the lowest bid to negotiate a deal elsewhere. Thus, the Covisint system was not acceptable to the seller. In reality, Covisint was not an exchange; it was merely an electronic request for quote (RFQ) system, as it is today.
  • RFQ electronic request for quote
  • the captive systems Compared to the traditional market, the captive systems have reduced wholesale cost per vehicle, increased their dealers' retail capabilities, increased their used vehicle wholesale prices, increased their net proceeds per used vehicle, and added ancillary revenue with transactions fees.
  • the captive systems are subject to other challenges. Because captive systems are limited to one or few franchises, they will never enable their dealers to maximize new automobile sales and prices.
  • Example: A Chevrolet dealer is selling a new vehicle to a customer with a Volvo trade-in. Due to the lack of Volvo dealers in a (GM) captive system, the Chevrolet dealer is unlikely to maximize the value of the Volvo trade-in and thus, is unlikely to maximize Chrysler sales and prices. Moreover, the value of the used Volvo is likewise compromised, which is true vice versa for Chevrolet.
  • Vehicle freight is another reason that optimal vehicle wholesale requires one industry-wide market. While financial securities can be digitally transferred, vehicles cannot. Without integrated freight, electronic vehicle wholesale will not scale to critical mass because the volume would create chaos. For example: a buyer in Atlanta buys two vehicles in Dallas, three in Miami, and five in Detroit. In the current electronic systems, the buyer will incur extreme difficulty arranging partial loads from numerous locations. As a result, the core value of connecting many buyers and sellers would be vastly diminished. Moreover, the delivered cost and time of buying a vehicle in a current system is unknown to the buyer before bidding, which increases risk while reducing acceptance and value. Because the current and captive systems cannot integrate transporters, available freight capacity will continue to pass right by available freight. In reality, electronic vehicle wholesale must be one industry-wide market with enough scale to integrate all vehicle wholesale products and services.
  • the vehicle is located in Orlando and was ambiguously represented as extra clean. After the buyer arranges freight, the vehicle is delivered and the buyer disagrees with the representation and thus, rejects the vehicle.
  • electronic vehicle wholesale must be one industry-wide market to enable enough scale as to inspect and guarantee all vehicles. 049 I Electronic Certainty Challenges
  • an electronic exchange Since an electronic exchange will maximize that connectivity, it will enable the highest allocative efficiency, i.e. the maximum value and profits possible within the limits of available resources. In other words, no other system, platform, or scheme can possibly enable greater efficiency and/or effectiveness. Designed correctly - an electronic exchange will enable the best possible results within a current market, i.e. a market with constant and natural buy and sell interactions, such as vehicle wholesale. 052 I NAMX Research Background
  • NAMX electronic vehicle wholesale exchange
  • NAMX defined the strengths and weaknesses of each product and service enabling vehicle wholesale trade. After establishing a landscape, NAMX asked and answered the following:
  • NAMX National Automobile Market Exchange
  • NAMX will vastly improve the vehicle wholesale markets that now enable an estimated $1.1 billion of trade per business day. It will describe how NAMX will enable the highest amount of connectivity between sellers and buyers while also providing the total and guaranteed cost and time of every factor prior to trade. It will describe how the markets will be enabled by the first precise vehicle valuation system as well as an inventory management and freight delivery system that will exceed the efficiency and effectiveness of Wal-Mart and FedEx systems, respectively. It will show how NAMX will enable dealers to use the wholesale markets as their own inventory as well as a seamless settlement system guaranteeing all payments and titles.
  • the current vehicle wholesale markets rely on many products and services to enable actual trade, i.e. inspection, valuation, freight, marshalling, storage, reconditioning, auctioneering, titling, finance, banking, and information integration.
  • current markets almost all of those products and services are so severely separated from actual wholesale trade that their capabilities are vastly diminished while their costs are artificially inflated.
  • their value to the new and used vehicle wholesale markets are artificially low, thereby creating massive wholesale barriers and thus, reducing all retail capabilities.
  • NAMX will radically improve new and used vehicle wholesale by connecting all of the products and services that facilitate wholesale trade into one industry-wide new and used vehicle wholesale market.
  • NAMX has designed applications for each product and service that will improve their capabilities while instantly and optimally distributing them to the highest point of demand at almost zero cost.
  • the value of those products and services will maximize because their usefulness will be optimally embedded in every transaction or instantly available to the seller and/or buyer as juxtaposed to the current toil, time, and cost of access.
  • the cost of providing the products and services will minimize due to near free distribution, thus reducing trade barriers while increasing capabilities and moving all supplies therein to their optimal demand.
  • NAMX will provide all buyers in the wholesale market with the following pre-trade transparency:
  • NAMX NAMX Marketplace Membership
  • NAMX will be a membership organization with membership regulation of market trade. Therefore, every commercial entity and user interacting with NAMX will be a member.
  • the member structure will enable dealers and carmakers to shape the rules of trade while also protecting the ability of NAMX to profitably guarantee every representation and transaction. Given the market structure, it is unlikely that a member will break market rules or attempt to deceive NAMX. To further thwart dishonest acts and ensure honest market trade, NAMX will maintain the right to suspend or expel any specific user and/or business entity (member) if one or numerous acts warrant such judgment. In that way, NAMX will prudently use the suspension or expulsion of membership, i.e. the loss of everyday NAMX capabilities, to ensure honesty and safeguard the viability of the NAMX markets.
  • NAMX estimates that 85 percent of franchise dealers (18,308) and 25 percent of independent dealers (14,969) represent about 90 percent of all dealer retail and wholesale activity.
  • the variance for independent dealers is due to a high amount of state licenses granted to dealers that retail less than ten vehicles per year while many states recognize wholesalers as dealers, thus skewing the numbers.
  • the NAMX target dealers are those representing more than 90 percent of retail and/or wholesale activity.
  • NAMX members will also include remarketers that wholesale more than 10 million used vehicles annually. Remarketers are carmakers, finance and lease institutions, corporate as well as government fleets, and rental car companies.
  • NAMX membership will include vehicle transporters that consist of roughly 10,000 new vehicle carriers and 10,000 used vehicles carriers with a capacity of 4 to 11 units per truck and a range from regional to nationwide.
  • targeted transporter members also include an estimated 20,000 roll-backs, wreckers, and drive services with a capacity from 1 to 3 vehicles and a range from local to regional. In total, the targeted NAMX membership will exceed 90,000 commercial entities and 1 million daily users. 061 I Targeted Marketplace Partners
  • NAMX will integrate the many providers of all products and services that facilitate wholesale as marketplace partners. They are:
  • Dealership Services will consist of systems such as phone logging and ecommerce
  • Vehicle Information will include data about vehicle history as well as repair databases
  • Vehicle Marshalling will act as intermediate distribution points and storage (auction)
  • NAMX NAMX will reduce their distribution costs to almost zero while increasing the value of their products and services at the same time. Much like the members, partnerships will also be subject to suspension and expulsion, which can arise if the products and/or services are misrepresented.
  • NAMX revenue The following is the proposed fee structure for NAMX revenue and subject to further collaboration with members, partners, and investors.
  • the NAMX fee for entering and selling a new vehicle will be zero.
  • the fee for buying a new vehicle will be $88.
  • the fee for entering and pricing will be zero.
  • all used vehicles require a NAMX inspection. If the seller wholesales the vehicle in the NAMX market, the inspection will be zero; otherwise the inspection will be $58.
  • the used vehicle buyer fee will be $174 per transaction.
  • the transporter fee will be $14 per vehicle accepted in the freight market.
  • Those four fees are the total of all NAMX market trade, services, and related applications - simple, consistent, and straightforward. Of the 5 million new vehicle wholesale transactions in the U.S.
  • NAMX NAMX Revenue
  • NAMX Based on near zero entry barriers as well as an automated vehicle entry system that will be precise and easy to control, NAMX expects dealers to enter a large portion of their $200 billion of vehicle inventory into the NAMX markets. In fact, almost every dealer collaborating with NAMX said they would enter their entire inventory, which is logical when considering that all vehicles are most likely worth more at another dealer and that all vehicles are for sale at some price. Because NAMX will maximize the buyer's access to sellers combined with real time and accurate valuations, complete and guaranteed representations, easy and seamless buying, guaranteed settlement and deliveries, as well as real time retail integration, dealers will easily maximize retail prices by actually providing what consumers want and thus, maximize the wholesale prices for $200 billion of dealer inventory and about $100 billion of remarketer wholesale transactions at any given time from anywhere.
  • NAMX will reduce trade cost by more than 80 percent primarily because NAMX will not need to move people and products to and from the auction. Thus, all dealer management and inventory will remain available in the retail market while simultaneously in the wholesale market. Moreover, NAMX will reduce the time to process a wholesale transaction by more than 90 percent. NAMX will also increase wholesale availability from two minutes once per week to 24 hours per day 7 days per week. Furthermore, NAMX will increase the amount of buyers available to sellers from a few in an auction lane to every possible buyer while increasing the amount of vehicles available to buyers from a few in the auction lane to all available vehicles. As such, all sellers and buyers will continuously realize the best possible result.
  • NAMX Since the NAMX vehicle inspection is free if sold in NAMX, the remarketers will realize maximum wholesale price for at least 10 million vehicles annually at near zero trade cost, thus maximizing vehicle availability for all dealers. While NAMX certainly respects the current electronic vehicle wholesale systems, it is very clear that they do not enable the most fundamental requirements of vehicle wholesale trade whereas that is the very basis of NAMX. Thus, there is no comparison between them and NAMX.
  • NAMX diffusion (adoption) strategy will remove all barriers to member adoption of NAMX by subsidizing the fastest possible acceptance.
  • NAMX will provide each member with an industrial grade and highly secure wireless system, thereby placing all market systems directly in the hands of all buyers, sellers, and transporters at zero cost to them.
  • members will need to place the handheld down and climb a mountain of cost, risk, and time to realize a fraction of the capabilities.
  • NAMX will supply, install, and manage one server and router as well as a wireless environment for each dealer member. NAMX will also supply each dealer with specially designed NAMX handhelds for everyday retail and wholesale activities. Each dealer will be supplied with a NAMX personal digital assistant (PDA) while each franchise dealer will also be supplied with a NAMX portable data terminal (PDT), which will be a rugged handheld with greater capabilities than the PDA.
  • PDA personal digital assistant
  • PDT NAMX portable data terminal
  • the dealership integration will drastically improve the dealer's ability to manage consumer trade-ins and vehicle inventory.
  • the system will also enable efficient vehicle inspections for NAMX while streamlining the pick-ups and drop-offs for transporters.
  • the hardware will be supplied to dealers but owned by NAMX. Per membership agreement, dealers will replace the hardware if lost, stolen, or destroyed.
  • NAMX will supply vehicle transporters with NAMX handhelds for daily freight planning, sourcing, navigation, loading, tracking, unloading, and invoicing activities.
  • the NAMX freight handheld will enable transporters with real time access to optimal freight availability at true market price within the NAMX freight market.
  • the handheld will also streamline loading and unloading, digitally complete waybills, provide location based services, and maintain a total vehicle condition accountably between the time of NAMX inspection and vehicle delivery.
  • NAMX will subsidize the necessary cellular and data cost.
  • the hardware will be supplied to transporters but owned by NAMX. Per agreement, members will replace the hardware if lost, stolen, or destroyed.
  • NAMX Network Address Translation
  • remarketers will define all locations from which their vehicles could potentially be inspected within their NAMX administration system. Based on their administration system, the remarketer simply selects the location from a dropdown list or map and then enters the number of inspections needed to wholesale vehicles. Because all required information will be captured by the NAMX inspection, the NAMX interface will provide all remarketers with three lists of inventory for vehicles they have entered for wholesale in the market:
  • Vehicles not priced - remarketers will be able to individually or automatically price units
  • NAMX Vehicles wholesaled - remarketers will be able to easily view any vehicle wholesaled
  • NAMX will also provide remarketers with an accurate cost and time of transporting any vehicle to an auction, marshalling, and vehicle reconditioning. As such, remarketers will be able to optimally price, transport, recondition, and wholesale their vehicles without systems integration. For those wanting or requiring integration, NAMX will provide an open systems interconnection.
  • the NAMX administration system is designed specifically for each different type of member and partner based on the ways they will interact with NAMX.
  • the administration system will capture, verify, and maintain all information relative to market interaction such as entity name, addresses, licenses, insurance, franchises, satellite locations, backend systems, market capacity, settlement, and membership administrators.
  • Market capacity refers to interaction potential such as wholesale trade for the dealers or freight capacity for transporters.
  • the settlement administration includes account numbers and terms for commercial finance and banking integration. Membership administrators are individuals who control all assignments and interactions in the administration.
  • the NAMX associate control will consist of various assignments, security levels, and permissions as set and adjusted by the member administrator, who can also create new member administrators such as the comptroller. Assignment enables the administrator to assign the required and optional trade responsibilities such as buying and inventory stocking, vehicle approval, arbitration, titles, and payments.
  • the security levels will enable an administrator to control each NAMX system that an associate can access such as new and/or used vehicle trade and/or settlement and so on.
  • the permissions will enable the administrators to establish associate interaction criteria.
  • an administrator can limit the amount of new and/or used vehicles that their associates can buy and/or sell at any time based on numerous criteria such as cost versus price, price versus valuation, or impact on cash among many other possibilities.
  • the criteria can simply require approval of another associate such as the comptroller before allowing a market activity to breach the primary criteria. If any criteria are breached during a market interaction, the systems will stop the buyer or seller before a transaction is initiated. In sum, members and partners will be able to easily and absolutely control every associate interaction.
  • NAMX interaction will enable administrators to control how their business will interact with NAMX, including systems integration, settlement preferences, and member limits.
  • the systems integration requires that the NAMX installed server read the dealer's system to enable seamless vehicle entry into the markets and ensure that all vehicles sold in another forum are automatically removed from the markets.
  • dealers may add write capabilities to automatically update their systems with NAMX trade activity and thus, reduce data entry cost and ensure accuracy.
  • NAMX will also enable open system interconnection (OSI) for all other members or partners. Because all debits and credits through the NAMX clearinghouse will be electronic, members will be able to choose electronic funds transfer (EFT) or electronic check processing (ECP) through their finance and banking institutions using settlement control.
  • EFT electronic funds transfer
  • ECP electronic check processing
  • Member limits will enable any member to remove any possibility of trade with any other member or geographic area for any reason, i.e. a competitor or another dealer that is advertising cut-throat prices. In short, members will enjoy absolute control.
  • NAMX NAMX
  • vehicle sales, sales management, vehicle appraisal, consumer relations, as well as market leverage whereby dealers predefine their desired profit margin in the administration system to use the millions of vehicles in the wholesale market as their own inventory in real time.
  • dealer predefine their desired profit margin in the administration system to use the millions of vehicles in the wholesale market as their own inventory in real time.
  • NAMX administration factors for every buyer, seller, vehicle, product, and service in the markets, one buyer's search for a vehicle in NAMX could require 100 million separate calculations.
  • NAMX To establish and manage all dealer memberships, NAMX will hire and train business managers at a ratio of 25 dealers to 1 business manager. At the very least, business managers will:
  • the business managers will report to district directors at a ratio of 11 managers to 1 director.
  • the district directors will support the managers and stand responsible for overall dealer adoption in their defined areas.
  • the directors will establish and manage the district memberships for all vehicle transporters and partnerships with physical auctions, mobile reconditioning, and banking institutions. While those members and partners will require far less attention than dealers, those processes will also be electronic as well as connected to their associated support systems for real time interaction, including the director's electronic calendars for appointments and other activities. All of the freight communications hardware will be distributed to transporters by auction partners while logistics agents within the support center will setup each transporter's administration system. Because freight systems will be very easy for transporters to understand and use, training will be also managed by logistics agents.
  • NAMX systems Each member, partner, and user's adoption rate will be closely monitored by NAMX systems with precision compared to defined potential. Further, the balance or equilibrium between members (wholesale trade) and partners (products and services) will likewise be monitored. As a result, NAMX systems and agents will optimally adjust the calendar activities for each manager and director to ensure the highest marketplace efficiency as well as penetration.
  • the district directors will report to regional vice presidents (RVP) at a ratio of 20 directors to each RVP.
  • the U.S. market (contiguous 48 states) will be divided into six fairly equal regions in terms of market potential. Because different states have different laws concerning vehicle registrations, all state borders will be maintained.
  • NAMX systems, their staff, and the support center each RVP will manage their directors and managers as well as large partnerships such as regional banks while the corporate offices will manage national partnerships and memberships.
  • the NAMX organization has been designed based the amount of members and partners as well as cautious estimations of the time needed to complete each activity required by member and partner adoption. To ensure execution, all activities will be monitored and supported by NAMX systems.
  • NAMX A business model with potential revenue of $3.4 billion will usually be addressing a customer base in the millions.
  • the NAMX customer base will be very small.
  • the NAMX database will define each potential member and partner while also assigning their NAMX manager and director as well as their member or partner identification number months before the launch of NAMX systems.
  • NAMX will initially be implemented in the southeast based on factors such as the infrastructure and weather.
  • the size of the initial implementation of NAMX is considered to be the smallest feasible insofar as enabling enough wholesale transactions to create enough freight for transporter adopt and thus, enable the markets. To enhance critical mass and training, all inspections will be free for 3 months before launch.
  • NAMX estimates over 40,000 vehicles available in NAMX on day one. 085 I Franchise Wholesale Interface
  • NAMX new vehicle wholesale will be franchise specific, i.e. a new Chevrolet model can only be wholesaled to Chevrolet dealer. Furthermore, NAMX will guarantee the proper trade of special vehicles and used vehicles. Because special vehicles can only be sold by dealers that are certified by the carmaker to service them, they can only be wholesaled to and from those dealers in the NAMX markets. Special vehicles usually consist of super performance or vehicles consuming special fuels such as natural gas. The agreements between carmakers and franchise dealers also include restrictions concerning the wholesale trade of late model used vehicles. In NAMX, all of the wholesale restrictions will be perfectly enforced. To that end, NAMX will include an interface that enables carmakers to easily establish as well as adjust the sellers, models, mileage, and buyers of the new and used vehicles incorporated in their agreements.
  • the changes will immediately take place in NAMX. If a franchise dealer secures a new franchise or is certified to sell a special vehicle, the support center will confirm the new status via the carmaker interface and immediately augment the dealer's capabilities in the NAMX markets.
  • NAMX will perform a standardized and comprehensive inspection on all used vehicles before entry into NAMX. To perform the inspections, NAMX will hire and train certified inspectors that will be tested by ASE. NAMX estimates that the inspectors will average 7 inspections per business day, which translates into 129 certified inspectors per 1 percent market penetration: (12 million transactions x 2 inspections / 265 days / 7 inspections / 100 points).
  • the 7 vehicle average considers the inefficiency of inspecting a few vehicles at rural dealers, the average does not fully incorporate the efficiencies that will be realized by inspecting vehicles at large lots, auction partners, reconditioning centers, or inspection centers built by NAMX where they are feasible. As such, the 7 unit average is considered to be the worst case. If higher efficiencies are realized, the NAMX certified inspectors could average 10 to 12 inspections per business day.
  • the inspectors will not interact with the sellers. Once each vehicle is located, the inspector will scan or enter the vehicle identification number (VIN) in the inspection laptop, which will instantly download available vehicle history records. Thereafter, the inspector will take 8 exterior and 5 interior pictures of the vehicle and then follow a set of digital templates depicting the exterior, interior, engine, drive-train, transmission, and undercarriage. The templates will replicate the look of each specific model and will efficiently guide the inspector through the inspection step-by-step while also providing sellers and buyers with a fast yet complete, precise, and accurate understanding of the vehicle's condition. 091 [ Automobile Interior Inspection
  • the interior template will automatically appear.
  • the inspector will review and/or test the condition of all interior components, including electronic equipment. If a concern is found, the inspector will simply click on the appropriate indicator (icon) and add it to the interior template.
  • the inspection software will automatically move to test drive mode. Preceding the test drive, the inspector will attach an onboard diagnostics system between the inspection laptop and the vehicle's OBDII computer. In addition, the inspector will also connect the laptop to an electronic brake tester. While diagnostics are collecting data, the inspector will use voice recordings and the digital indicators to express the drivability factors such as turning, shifting, suspension, noise, and vibration. The inspector will also use icons to express the working order of all electrical, power assist, climate, audio, video, navigation, and telematics.
  • the onboard diagnostics system will capture critical data by monitoring onboard computers during a test drive.
  • the data will initially include generic and other powertrain codes relating to concerns from a loose gas cap to engine failure but will grow to include all codes over time.
  • DTC diagnostic trouble codes
  • the system will compare them with a NAMX database and:
  • the NAMX inspection software will automatically move to engine and fluid analysis mode. As such, the inspector will draw a two ounce sample of oil from the dipstick tube to begin the fluid analysis. Based on the onboard diagnostics results and/or specific model and/or condition, the inspector may also draw a sample of transmission fluid for analysis.
  • the fluid analysis will precisely measure the full array of wear metals and foreign fluids that are present in the engine and/or transmission fluids to accurately determine problems without disassembly. As a result, fluid analysis will accurately detect coolant leaks, blown head gaskets, leaking manifold gaskets, cracked blocks, oil sludge and much more.
  • the results will be wirelessly transferred to the laptop.
  • the inspection software will compare the results with a NAMX database and will:
  • the inspection software will instantly move to the exterior mode.
  • the software will guide the inspector through the templates for the panels, doors, door jambs, pillars, bumpers, windows, wheels, tires, lights, roof, and trunk. Similar to the interior templates, the inspector will add icons to each exterior template for concerns such as scrapes, dings, dents, scuffs, and tears among many others. Templates for the windows and trunk will include icons such as cracks and stains.
  • the inspector will measure most brake pads. In rare circumstances, the inspector will need to remove the wheel to inspect the pads. Using a laser measuring device, the inspector will also measure the precise tire tread depths.
  • the inspection software will prompt the inspector to scan the paint in three defined areas with the coating thickness gauge.
  • the electronic paint gauge will instantly add the precise paint depth to each template. Since a body shop is unlikely to match factory paint depth from panel to panel, the inspection will discern previous paint work. Example: if the paint depth on one panel is 9 mm while about 5 mm on the other panels, that panel has been repainted and the vehicle may have wrecked.
  • the inspection system will move to underside mode, which will guide the inspection underneath the vehicle.
  • underside mode which will guide the inspection underneath the vehicle.
  • the inspector Using a cart that will extend a small yet high quality camera and lights up to 4 feet, the inspector will control the pan, tilt, zoom, and picture capabilities with the laptop. Similar to the other templates, the inspector will add icons as the camera inspects factors such as frame rails, absorbers, shocks, gas tank, boots, gear box, axles, and much more.
  • the inspector will take high quality pictures of any books or records inside the vehicle or at the facility. If the vehicle being inspected is owned by a franchise dealer, the inspection system will automatically scan the dealer's management system to locate all service work performed on the vehicle. If the inspector agrees the work has been completed, the information is included with the inspection for market consideration. Including drive time, gathering keys, locating vehicles, and general ineffectiveness; NAMX estimates that the average inspection will require 75 minutes. All inspection equipment will be totally rugged and designed to withstand the punishment of inspections in almost any weather. From the inspection request to completion, the NAMX inspection will enable the worlds' most efficient and effective mobile vehicle inspection.
  • NAMX used vehicle representation
  • vehicle representation In addition to inspection and reconditioning, vehicle representation must provide all buyers with the cost and time vehicle freight as well as integrated delivery execution to truly enable vehicle supply to demand efficiency. To enable such transparency and capabilities, it is critical to understand the nuances that cause current inefficiencies. Disconnection between vehicle transporters and vehicle wholesale trade is the primary reason that about half of all freight capacity is wasted. Transporters typically rely on brokers to locate freight on their behalf for a fee of about $25 per vehicle. Since wholesale trade is disconnected from freight, the brokers must rely on relativity few relationships with transporters, dealers, and remarketers via phone, pager, and facsimile. Therefore, the brokers are very limited in providing freight capacity to availability and even less so vice versa.
  • NAMX will remove the current realities of good and bad freight by making all freight good freight for every transporter every time.
  • a significant amount of vehicle supply is not available to demand due to location difficulty.
  • sellers or buyers are located one mile from a primary interstate in a metro market, their location difficulties are low and freight capacity is usually available.
  • the sellers or buyers are located in rural areas far from an interstate, their location difficulties are high and freight availability is low.
  • vehicle supply and demand is about equal in metro versus rural markets, the vast majority of dealers are located in rural markets. Because the rural dealers are less likely to meet consumer demand due to less inventory availability while the metro dealers need access to more inventory due to far greater opportunities, the ability to efficiently connect rural and metro dealers is critical.
  • NAMX will provide all buyers in the wholesale market with the accurate cost and time of freight before bidding while also providing all transporters with a fair market price that will move all freight without exception.
  • the NAMX freight price mechanism will accurately predict the price and time for all freight possibilities between all NAMX buyers and sellers before the freight actually exists. Moreover, NAMX will actually guarantee the price as well as delivery of all freight.
  • the NAMX freight market will calculate factors of supply (capacity) and demand (availability) along with factors such as government regulation to reverse engineer a guaranteed freight price while providing an accurate time of delivery for all search results in the wholesale market. Moreover, the NAMX reverse engineered freight price will effectively and efficiently move all freight by providing transporters with an attractive price while maintaining an optimal price for the buyers. To that end, NAMX will calculate the time between freight availability and transporter acceptance to maintain a difficulty index for all locations in NAMX, including auctions as intermediate distribution points. As the acceptance time for any location increases or decreases, the difficulty index will also increase or decrease. To discern a base price per mile, NAMX will calculate factors such as service types, fuel price by area, and the size, weight, and quantity of freight.
  • the resulting base price per mile will be multiplied by the average (seller and buyer) difficulty index to establish the actual price per mile.
  • the actual price per mile will be multiplied by the optimal route distance to reverse engineer the most attractive and optimal freight price for every search result in the NAMX wholesale market.
  • NAMX will constantly measure actual delivery time for each distance delivery break, e.g. 25, 50, 100, 250, 500, 1 ,000, and 3,000 miles. Rather than set arbitrary distance breaks, breaks will set and reset by constantly calculating the greater-than-normal time variances per mile. For each break, NAMX will calculate the intermediate freight acceptance time and time between acceptance and freight pickup to establish the pick-up time. The actual mileage will be multiplied by distance break time per mile plus the pick-up time to set the base delivery time. The base delivery time will be adjusted by freight size and quantity to calculate the specific freight time. NAMX will likewise calculate the government mandated hours for each route, which will override the specific freight time if greater. 106 I Freight Sourcing Foundation
  • the freight specifications (year, make, model, length, weight, origin, pick-up time, distance, destination, arrival time, and freight price) will be instantly available in the NAMX freight market.
  • NAMX will also calculate an additional route or routes from the origin to destination using auctions as distribution points.
  • the additional routing will employ the freight price and time calculations plus the additional time and cost of vehicle marshalling at the auto auction while maintaining the initial freight price and time. Therein, the price and time per mile will retract but the result could be more efficient and effective.
  • the NAMX freight market will efficiently and effectively deliver freight by leveraging real time capacity with a true market price while enabling transporters by leveraging the various technological, communications, and physical infrastructures.
  • a transporter can easily search for and locate all available freight in NAMX based on all relevant criteria. Or, the transporter can simply enter a destination, multiple destinations, and/or their final destination in their NAMX handheld. For each destination, NAMX will request current or expected capacity for each as well as the required date of arrivals. In response, NAMX will provide the transporter with a list of optimal freight for each destination. As the transporter accepts freight on the list, NAMX will adjust the list of optimal freight to reflect the lower capacity as well as new arrivals and delivery times. If the transporter simply enters the final destination and required arrival date, NAMX will provide the transporter with the optimal freight and destinations between the current and final time as well as place. Once the transporter enters any amount of destinations and capacity, NAMX will continuously track the transporter and offer optimal freight while the transporter is en route, thereby continuously maximizing the leverage of capacity.
  • a transporter with a 10 unit capacity is empty in San Diego on Monday with a final destination and arrival date in Atlanta by Saturday.
  • NAMX offers 6 units from San Diego to Phoenix and 3 units to Dallas. From Phoenix, NAMX offers 2 units to Ft. Worth and 4 units to Atlanta. From Dallas, NAMX offers 3 more units to Atlanta. The transporter accepts them all. While en route to Phoenix, more transactions are completed and the transporter is offered 1 more unit from Phoenix to Dallas and 3 more units from Dallas to Atlanta, which are accepted and efficiency is realized.
  • the primary factor enabling NAMX to continuously reverse engineer an accurate freight price is the location index, which is maintained in the administration system of each seller, buyer, and auction.
  • FAT mean time of transporters accepting freight from a location
  • their location index will likewise increase or decrease.
  • OTD on-time-delivery
  • the NAMX systems will fractionally decrease or increase each location index. As a result, the FAT and OTD will optimize. Price alone will not optimize OTD when circumstances such as weather and/or traffic impede delivery. With similar methodology, NAMX will adjust the FAT and base delivery time (BDT) for specific areas and/or regions if such route circumstances are present and/or foreseeable.
  • BDT base delivery time
  • NAMX Considering the size of a vehicle, it may seem unlikely that NAMX can surpass FedEx logistical efficiency. However, NAMX will enable far greater efficiency due to factors such as the following:
  • NAMX will constantly calculate the exact amount and location of capacity and availability as well as the optimal route and/or intermediate points between freight supply and demand
  • NAMX will interconnect freight capacity and availability in real time, thus, removing the time delay between freight supply and demand, thus, maximizing capacity response efficiency
  • NAMX will leverage the optimal (type and location and thus, price and time) freight capacity available rather than the extreme inefficiency of prescheduled capacity assignments
  • NAMX will connect a vast array of capacity in real time rather than the capacity limitations of one firm, thereby enabling the greatest capacity and competition for freight availability
  • NAMX will enable transporters to act in their own best interests (invisible hand) to establish a real time market price for freight capacity and thus, maximize allocative efficiency
  • NAMX will minimize capacity imbalance with an economic driven system enabled by real time connectivity to produce vastly greater freight efficiency than any other system in the world.
  • NAMX will define the values of every vehicle element such as options, colors, and trims for any vehicle in question by isolating and comparing the transaction prices. For the same year, make, and model as the vehicle in question, the isolation process will:
  • NAMX processes will add reconditioning costs back to the prices for every transaction defined above.
  • additional loss of valuation resulting from reconditioning cost the NAMX processes will likewise measure the difference in prices compared to each incremental increase of reconditioning cost and time. For example: $1.00 of reconditioning cost on any specific model may reduce prices by $1.28. To the extent that reconditioning costs reduces prices further than the actual costs, NAMX will add those amounts back to the transactions defined above as well.
  • NAMX will isolate and compare the prices for the various types of registration, title, accident, and theft information to calculate the amount of price gain or loss for specific models.
  • NAMX processes will create vehicle mileage breaks for each base model combination by calculating the primary (greater-than- normal decline) price reductions to set the start and end of vehicle mileage breaks. Within each of the mileage breaks, NAMX will calculate the differences between the prior and break transaction prices as well as mileages and then divide the difference in price by the difference in mileage to calculate the per mile value within the break. To calculate the total mileage value, NAMX finds the average mileage (A) and price (B) for the overall model in question and multiplies the difference in miles (X) for the specific vehicle by the per mile value (Y) of each vehicle mileage break between (A) and (X) to calculate the precise gain or loss (Z) of value from (B) for any specific vehicle. As a result, NAMX will normalize each of the secondary and intangible transaction prices defined above. 115 I Element Valuation Combination
  • the isolation processes will discern the valuation of specific vehicle elements in real time, thereby enabling physical (vehicles that do exist) and hypothetical (vehicles that do not exist) new as well as used vehicle valuations.
  • the transaction prices or utilize any methodology that fails to calculate the factors constituting the prices such as condition, options, colors, mileage, and history
  • NAMX will define, isolate, calculate, and combine those factors and their correlating prices to discern real time and accurate valuations.
  • NAMX will calculate the base model combination price and then add or deduct the price of each option and color.
  • NAMX will add or deduct the value of vehicle history and each mile individually.
  • NAMX will adjust each price to the most recent transaction date by calculating a depreciation rate. For vehicle options that lack transaction prices, NAMX will apply the depreciation rate to the initial price of the option. In short, NAMX will calculate precise and real time valuations for any vehicle.
  • NAMX Real time and accurate vehicle values will dramatically enhance the ability of sellers and buyers to interact in the NAMX and auction markets.
  • NAMX will provide members with numerous market indices based on those real time vehicle valuations.
  • NAMX will calculate the indices such as the NAMA (New Automobile Market Average) and PAMA (Pre-owned Automobile Market Average) for used.
  • the NAMA and PAMA will employ a weighted average of the thirty best retailing new and used vehicles at any given time. Each model weight will be multiplied by its correlating valuation to maintain each index.
  • the carmakers and vehicle segments will also have a new and used vehicle index, which will be based on a weighted average of all carmaker vehicles and the best selling ten vehicles for each segment.
  • NAMX will calculate three factors for each model, segment, and carmaker.
  • the relative retail rating (RRR) will provide an instant rating of retail opportunity by dividing the average retail profit margin for each model by the average cost. That result will be divided by retail days-supply to calculate the index.
  • NAMX will calculate a Relative Market Index (RMI) of risk based on specific liquidity and a Relative Value Index (RVI) based on retail and wholesale factors combined. All three of the indices will be normalized to a factor of one and tracked over time. Knowing that different members will interact differently, all members will be able to easily adjust the weight of primary factors as they desire on a horizontal sliding scale, i.e.
  • a member can adjust the RRR between the profit margins and the cost of time, the RMI between supply and demand, and the RVI between retail and wholesale.
  • the valuations and indices will enhance inventory insights and market trade. NAMX valuations are for members only and cannot be published in any form. Violations will result in member suspension. 118 I Vehicle Inventory Intelligence
  • NAMX will provide them with an inventory intelligence system.
  • the NAMX inventory intelligence system will integrate and weigh all data concerning the limitations and possibilities of vehicle inventory for each specific operation to calculate the most efficient and effective inventory for them at any given time. Moreover, NAMX will integrate those calculations directly in the NAMX inventory interface, thereby enabling reliable retail and wholesale decision making and instant action taking capabilities that will reduce cost and increase unit sales.
  • NAMX To provide dealers with continuous inventory intelligence, NAMX will connect the following factors:
  • Inventory Guidelines enables dealers to easily establish guidelines such as inventory size and turn as well as specific limitations such as models, cost, value, condition, age, etc.
  • Sales Forecast enables dealers to easily set annual and/or monthly new as well as used vehicle sales forecasts by segment, new and/or used model, and/or sales representative
  • Recent Sales a continuous calculation of the best-selling new and used vehicles for each dealer over a recent period of time, i. e. the most recent 90 day period of retail unit sales
  • Forward Sales a continuous calculation of the best-selling new and used vehicles for the next sales period based on the dealer's sales for the same period prior, i.e. 30 day period
  • NAMX valuation and dealer communication integration will garner all of the information for the inventory intelligence except for: Area Registrations.
  • NAMX data integration will connect dealers and data providers in real time. Based on the dealer's previous vehicle sales, the NAMX systems will provide them with a map of their area of dominate influence by zip code. Based on the map, NAMX will show the cost of sales data.
  • the dealer can easily adjust the cost of data by simply adjusting the size of their area up or down, i.e. 90 up to 95 percent.
  • the dealer can easily setup periodic renewal or push a button to buy the data from the provider.
  • the current cost of data sales and distribution is very high for providers while the value of their data is low because dealers lack of time and/or ability to properly apply it.
  • NAMX will increase data value by transforming it from merely interesting to a powerful tool providing answers rather than more questions. Furthermore, NAMX will reduce the sales and distribution costs to near zero.
  • NAMX inventory intelligence will rate all new and used vehicles between ten points positive and ten points negative based on the aforementioned factors.
  • the weight of each factor will be initially set to a default but dealers may adjust the weight on a sliding scale to more closely reflect their specific operation.
  • NAMX inventory intelligence will calculate the dealer's optimal inventories, which will change as area sales, dealer sales, wholesale values, inventory guidelines, sales forecast, or expected returns change. In real time, optimal inventory will be juxtaposed to the actual inventory and provide the dealer with buy, sell, and hold guidance based on each dealer's specific settings. For an example: a dealer may set the ratings at 6.2 negative equals sell while 7.1 positive equals buy, thus, all ratings between 6.2 negative and 7.1 positive equal hold.
  • NAMX will provide all dealers with an interface of their new and used vehicle inventory in real time. To that end, NAMX will track all wholesale and retail activity for each dealer to maintain accuracy.
  • the inventory interface will enable dealers to sort their inventory by franchise for multi-franchise dealers and by stock or identification number, year, make, model, trim, package, color, aging, cost, and valuation.
  • the inventory interface will show the following:
  • the current vehicle status i.e. pending transaction, service department, retail, or wholesale
  • the interface will total each column to provide dealers with an instant understanding of their vehicle inventories.
  • multi-franchise dealers will be able to review inventory by franchise while dealer groups will be able to review inventories in one store or compare and rank between many.
  • Asking price is the buy now price and required for market entry, (visible to the market)
  • Floor price is the minimum price for seller review, also required, (invisible to the market)
  • Accept price is an optional price between asking and floor prices, (invisible to the market)
  • the asking price is an amount that the seller is willing to accept for the vehicle, i.e. buy now price. If a buyer bids the asking price, the seller must wholesale the vehicle.
  • the floor price will be invisible to all of the buyers and is the minimum price that the seller will consider for review and negotiation.
  • the optional auto-accept price is a dollar amount anywhere between the asking and floor price, which will also be invisible to all buyers. If the seller enters an auto-accept price, any bid received at or above that price will be automatically accepted and sold. Owing to the real time valuations and other market factors, the pricing interface will show the likelihood (%) of a bid meeting each of the three price points, thereby enabling the seller to adjust price if necessary.
  • the NAMX vehicle entrance and pricing interfaces will enable an extremely straightforward and easy process for sellers to wholesale their vehicles in their own best interest (invisible hand).
  • NAMX will also provide automated entrance and pricing systems. Automated entrance will enable dealers to enter new vehicles automatically by selecting any model and criteria such as inventory aging, vehicle valuation, and/or inventory intelligence.
  • Example: a Chevrolet dealer selects the Malibu model and age criteria for entrance and pricing as follows: when each Malibu reaches ten days in inventory, it will automatically enter the wholesale market with an initial asking price of $500 over net cost and an initial floor price of $100 below cost Further, the dealer directs the asking and floor price to automatically reduce by $50 for each additional ten days in inventory with a maximum asking price reduction of $300 below cost when reaching 160 days in-stock.
  • the automated entrance and pricing will also enable used vehicles as well, whereby sellers can easily use criteria such as age, cost, valuation, intelligence, and other factors to automate used vehicle inventory.
  • NAMX automation will enable sellers with precise control, minimal effort, and maximum benefit - thereby maximizing new and used vehicle supply in the NAMX markets.
  • NAMX will enable dealers to combine automated and inventory intelligence systems. As a result, dealers can automatically enter and price new as well as used vehicles based on intelligence ratings. Moreover, dealers will be able to modify automated entry with secondary and tertiary criteria such as year, make, model, segment, cost, and age.
  • NAMX will enable the sellers to automatically price and adjust their asking and floor prices based on real time vehicle valuation by simply setting the price of a specific vehicle or an entire group of vehicles within a percent or dollar amount of real time valuation over any period of time. Once more, the sellers will be able to place a stop loss on any automated price versus cost regardless of valuation.
  • Sellers may also automate the floor price and auto-accept price as a percentage or dollar amount lower than the asking price and as such, narrow their price factors down to only one for a group or all vehicles they enter in the markets.
  • the NAMX inventory interfaces will likewise enable dealers to manage retail pricing and ecommerce.
  • dealers can select any vehicle in the inventory interface for retail pricing, listing on their website, and listing on public websites as well.
  • the interface Before entering a vehicle in a public website, the interface will show the dealer all terms and cost if any.
  • NAMX will automatically remove any vehicle from the dealer's website as well as the public websites once the vehicle is wholesaled or retailed by the dealer.
  • dealers will be able to automatically enter and price vehicles on the websites as well as in their showroom.
  • the NAMX retail entrance and pricing automation is almost exactly the same as the wholesale automation with the only exception being a retail price rather than a wholesale price.
  • dealers will be able to easily price vehicles by setting their retail price as a percentage and/or dollar amount over their cost or real time vehicle valuation. Dealers will also be able to utilize the NAMX inventory intelligence for retail pricing, i.e. the higher the rating the higher the price and vice versa.
  • NAMX will enable easy and automated market entry of new and used vehicles into the wholesale markets with absolute control and the highest confidence at zero or near zero cost.
  • NAMX will provide dealer members with free inventory intelligence and automation systems with technical support. Because demand for any new or used vehicle is likely greater at another dealership, inventory intelligence and automation systems will maximize wholesale supply and thus, maximize wholesale demand in NAMX, which will maximize wholesale transactions (NAMX revenue) as well as automobile sales. 130 I Wholesale Searching Criteria
  • NAMX Vehicles in the U.S. market are available in almost 1 ,400 model variations with billions of possible combinations of options and colors. Because NAMX will maintain all automobile characteristics and all factors of trade execution, buyers will be able to easily search for and locate new and used vehicles in NAMX based on criteria such as the year, make, model, mileage, segment, carmaker and aftermarket options, vehicle history elements, reconditioning costs and time, delivery cost and time, seller's price, price range, total cost, and total time before the vehicle is ready for retail sale. Moreover, the buyer may also search and locate vehicles based on retail criteria such as payment, including finance criteria and profit margin.
  • NAMX will provide the accurate and real time value for each mile, option, condition, and total valuation for each specific vehicle they review. Therefore, the buyer may likewise search for vehicles based on the difference between the total vehicle costs compared to the real time value.
  • the search results will provide a list of vehicles that meets the criteria starting with the lowest delivered price (asking price, vehicle reconditioning cost, freight cost, and NAMX buy fee) and then sorted by delivery time. If desired, the buyer may adjust the order by any criteria available in NAMX. Within the listed results, the buyer may select any unit to review vehicle detail. Based on data interaction between the NAMX vehicle database and carmakers, all new and used vehicle detail will show feature and benefit information. Results will also show static pictures and video of the vehicle and options. Used vehicle results will include the inspection templates and provide visual clarity of the vehicle, options, and condition. For new and used vehicles, the buyer may review previous, current, and projected value as compared to the total delivered cost. What is arduous, ambiguous, and risky today will be very quick, clear, and totally guaranteed in NAMX. In seconds, each buyer will be able to review, understand, and acquire vehicles with total confidence.
  • NAMX treats them both as a constant. In other words, maximum value is everywhere all of the time rather than subject to any one place or time.
  • the buyer may select, review, and bid on one vehicle with one seller or send many individual bids with instant cancellation of all remaining bids once the desired quantity is met.
  • a buyer may also refine the search criteria (vehicle, options, mileage, condition, cost, and time) and bid on all of the listed results simultaneously by also defining the bidding and quantity criteria.
  • the bid criteria will consist of the starting bid, incremental bid, maximum bid, and maximum quantity.
  • NAMX members can enable the constant automation of buying and selling.
  • a dealer could direct NAMX to automatically buy and deliver all new and used vehicles in the market with an inventory rating at or above 9.0 positive.
  • the inventory intelligence automatically incorporates real time vehicle valuation, the rating would likely drop below 9.0 if the price exceeded the actual valuation.
  • the intelligence is based on the dealer's specific inventory needs. As such, a specific model that equals 9.1 before it is acquired may equal 8.5 afterwards because the days of supply for that model has increased in the dealer's inventory. Therefore, dealers can employ automated buying with complete confidence because the system incorporates cost, time, and values while intrinsically maintaining efficient and effective vehicle inventory based on the control and needs of each specific dealer. As discussed, the same capabilities will be available on the sell-side, i.e. automatically enter and wholesale each vehicle with an inventory rating at or exceeding 9.0 negative. With the NAMX automated systems, the members can be more conservative or aggressive by simply adjusting their ratings up or down.
  • NAMX will also enable wholesale trade of new vehicles orders.
  • the wholesale trade of new vehicles in the order fulfillment process will expand the potential vehicle variations available to dealers by enabling a dealer to buy an order that is close to production from another dealer and then customize the order on behalf of their customer.
  • the buying dealer will increase consumer satisfaction and sales while also reducing inventory and costs.
  • the trade of orders will likewise include new vehicles in transit.
  • the trade of new vehicle orders will work exactly the same as all other NAMX wholesale trade.
  • NAMX will include a futures market enabling remarketers to wholesale used vehicles before they are actually grounded. By selecting the date of availability and location where the vehicles can be inspected, remarketers will be able to enter vehicles in the futures market. After entering the location and availability date, a remarketer will simply enter the year, model, trim, and quantity. For pricing, they will define the quantity into groups according to options and then the range of colors, mileage, and reconditioning cost. After NAMX provides the remarketer with a low and high valuation, the remarketer will enter the asking, floor, and automatic accept prices.
  • the NAMX inspectors will arrive at the remarketer's specified locations to inspect all vehicles that were sold in the futures market. After inspection, all vehicles that qualify based on their representation will be sent to the buyer via the freight market. For vehicles that fail to qualify, remarketers may adjust the price and the buyer may accept the adjusted price. Otherwise, those vehicles will enter in the spot market. Either way, all vehicle representations will be guaranteed.
  • the upside is that remarketers can reduce cost and risk while the downside is that the last buyers are less likely to acquire vehicles due to rejections.
  • Used vehicle reconditioning is a critical part of retail and as such, it is a critical part of wholesale.
  • sellers and buyers have limited options and ability to have a vehicle reconditioned before it is wholesaled by the seller or delivered to the buyer. While some dealers agree on reconditioning vehicles they purchase, others prefer to focus their service capacity on retail customers and many simply prefer that all vehicles are reconditioned before delivery regardless of their service capacity.
  • a high amount of vehicle reconditioning value tends to be lost in the current wholesale market because reconditioning is not properly represented or guaranteed.
  • the reconditioning investment is worth less than it should be.
  • many dealers recondition all of the vehicles they purchase in spite of previous reconditioning. As such, those dealers must deduct that unnecessary cost from the price they can pay, thereby reducing vehicle value for all dealers and remarketers.
  • NAMX Owing to the NAMX inspection, members will enjoy absolute confidence and clarity of any vehicle's reconditioned needs before it is sold or bought in NAMX.
  • NAMX will use the freight capabilities to integrate auction reconditioning capacity in real time. Due to that integration, members will be able to easily review a list of reconditioning needs for any used vehicle and select exactly what they want reconditioned before the seller wholesales a vehicle and/or the buyer purchases a vehicle.
  • the reconditioning option will include an aftermarket menu and show cost and time, including additional freight if required. Since auctions will provide distribution points for freight and are far more efficient at reconditioning, the option could easily lower cost and time.
  • NAMX A buyer enters search criteria in NAMX for a used vehicle. For each eligible unit, NAMX computes the cost and time of reconditioning based on NAMX inspections and buyer preferences while also calculating the cost and time of freight from each of the sellers to the buyer. The best result is a freight cost of $123 and an arrival time of 1 day with a reconditioning cost of $216 and completion time of 2 days. Adding the seller's price of $9,750 with the buy fee of $174, the total reconditioned and delivered price is $10,263 and the time is 3 days. However, the buyer wants the vehicle to be reconditioned before delivery.
  • NAMX computes the cost and time of vehicle marshalling and reconditioning at each potential auction based on their administration and calendaring systems for cost and capacity. Including the cost and time of freight from each seller to each auction and then to the buyer, each auction's marshalling fee, each auction's labor rates, each auction's flat rates, and each auction's anticipated reconditioning capacity, the best result is a reconditioned and delivered price of $10,321 and 2 days of time or $58 more but one day less for the reconditioning option. The same holds true if sellers want vehicles reconditioned prior to or during market entry.
  • NAMX The auction's physical infrastructure will be very important to the NAMX markets. Their marshalling capabilities will enhance freight logistics and their reconditioning capacity will boost market trade. Moreover, their commercial finance services will increase market liquidity while their actual auction services will bring the entire new and used vehicle markets together as one industry-wide system to maximize efficiency and effectiveness for every single member and partner. Notwithstanding the capabilities of the NAMX inspection systems, NAMX cannot profitability guarantee all used vehicle, representations. Therefore, NAMX will initially limit all used vehicle trade to 7 model years and/or 70,000 miles among other factors such as vehicle condition and history. Within the current market of 29 million used vehicle wholesale transactions, those qualifiers will limit NAMX potential to about 12 million. To enable the other 17 million units of vehicle supply to higher demand, NAMX systems will integrate the technological and communication infrastructure of NAMX with the physical as well as technological infrastructure of the auctions to enable one system for all vehicle wholesale trade. 142 I Auction Wholesale Integration
  • NAMX will leverage the administration, communications, freight logistics, inspection, valuation, intelligence, automation, market, and settlement systems to streamline wholesale trade in and out of auctions with the greatest predictable efficiency.
  • Those systems will enable inventory intelligence integration, manual and automated entrance, search and results dissemination, as well as ecommerce and retail integration very similar or exactly like the NAMX markets.
  • the NAMX valuation systems will isolate elements of vehicle value and combine them to calculate precise vehicle values for units sold via the auctions. With NAMX, the cost of all freight, travel, depreciation, interest, human resources, settlement, and administration will be lower while wholesale capabilities will radically increase for auction activities.
  • NAMX auction systems will include real time communication of all available capacity (lane and run numbers) at the auctions.
  • lane and run numbers When a seller scans a vehicle for wholesale that does not qualify in NAMX or an inspector rejects a vehicle for cause, the NAMX auction interface will appear with the best auction, date, lane, and run number. The assignment computations will be based on previous auction results and the cost and time of freight while enabling sellers to easily adjust the auction or date if desired. After a seller assigns any vehicle to an auction, the freight will be instantly available to all transporters. Once the vehicle has physically arrived at the auction, it will be inspected with the NAMX inspection system and sent to the proper parking space based on its pre-assigned lane and run numbers. As the vehicle runs through the lane, the auction activity will be broadcast live (current technology) to interested NAMX members for bidding. If the unit fails to sell at the auction, the vehicle inspection and auction video will remain available in the NAMX market until it is sold.
  • the NAMX auction system will enable sellers to easily price the vehicles for wholesale at the auction and in the NAMX market.
  • the seller simply enters the starting bid and the floor price - or the seller can use real time market value to set the price for one vehicle or all vehicles by entering the minimum percentage or a dollar amount over or under market value.
  • the system will show the likelihood of a bid meeting the price points and enable adjustment.
  • the seller simply selects physical, virtual, or automated representation.
  • NAMX auction systems will vastly improve vehicle representation, access, and confidence for buyers while reducing their cost and time of auction interaction as well.
  • Each NAMX inspection will be available to all buyers in the auction lanes and online.
  • vehicle representations will include all cost and time for freight and reconditioning plus the wholesale price and auction fees as compared to market valuation. Because there are many auctions and lanes, online buyers will be able to search for vehicles by model, time, and price criteria across many auctions simultaneously. Buyer may:
  • NAMX members can likewise enable a constant automation of buying and selling vehicles at the auctions with ratings, i.e. 9.0 positive or negative.
  • Dealers tend to rely on inaccurate guide books for vehicle values and a rather ambiguous as well as incomplete vehicle inspection to appraise consumer trade-ins. Because the trade cycle is one of the most critical components of industry growth, it is certain that consumer trade-in appraisals impact all industry participants regardless of whether they are directly involved or not. Moreover, the amount of vehicle sales lost due to under appraisals and the amount of profit lost due to over appraisals is considerable. The NAMX appraisal will be a significant leap forward for dealers and the industry by streamlining the appraisal process and providing a real time and accurate valuation.
  • NAMX will combine the inspection, valuation, and intelligence systems to bring about a complete, standardized, quick, and accurate appraisal of any vehicle using the NAMX handheld, which is one of many reasons why the NAMX wireless environment and dealer systems integration is so critical to the automotive industry.
  • the NAMX appraisal system will garner cosmetic, mechanical, as well as historical factors of each vehicle while also capturing factors such as the paint depth to uncover any pervious paintwork. In a standardized step-by-step format that thwarts deviation, the NAMX appraisal system will be very efficient and effective.
  • the inspection results will provide the cost of cosmetic and mechanical reconditioning as well as the real time valuation of the vehicle. Owing to the wireless environment and systems integration, the appraisal results will be instantly transferred to the sales management desk.
  • the NAMX inventory intelligence will recommend wholesale or retail. If the dealer selects wholesale, the system will discern if the vehicle qualifies in NAMX. If the vehicle qualifies, the system will automatically assign an inspection for entry and will also assign the unit to service and then to retail until sold in NAMX. As such, dealers will be able to add value in the retail market with the independent and certified inspection while also maximizing value in the wholesale market simultaneously. If the vehicle fails to qualify in the NAMX market, it will be instantly assigned to an auction as well as the freight market for transport to the auction.
  • NAMX will track all retail transactions via systems integration until each contract- in-transit clears the back office. Since dealers appraise vehicles that they are unfamiliar with on a daily basis such as a Cadillac dealer appraising a Porsche, NAMX will warrant a high percentage of the valuation for a limited period of time. Like all NAMX systems, the appraisal is based on current practices but will be far easier to utilize with vastly greater accuracy and capabilities. In short, the NAMX appraisal will streamline the process from accurate appraisal to optimal retail or wholesale.
  • NAMX While the amount of NAMX systems may seem difficult or complex for the members to manage, it is precisely those systems that will enable easy and automated interaction with an estimated $300 billion wholesale market and $750 billion retail market. What takes weeks or months to accomplish in the current wholesale market will take mere minutes to complete and what is arduous in the retail market will be easily managed with the push of a button in NAMX - all with far less cost and vastly greater effectiveness.
  • NAMX will provide marketplace messaging that will enable NAMX systems to automatically communicate with members based on the criteria set by the members. Example: based on the member's criteria for automated entrance, the system enters and prices two vehicles in NAMX.
  • the automated entrance sends the member a message and link to the NAMX inventory interface for review and adjustment if necessary.
  • the system sends an email to alert the member when the value of a specific model has increased or decreased greater than the defined amount over a defined period of time.
  • Enterprise messaging will enable various associates in management, sales, finance, service, and administration to communicate with one another inside of one organization.
  • the vehicle inventory exceeds the defined limits set by executive management, which will trigger a message to the executive from the system.
  • the executive sends a message to the sales manager requesting an explanation or inventory adjustment.
  • the sales manager is off duty so the system calls his or her cell phone and thus, the manager logs into NAMX and corrects the concern.
  • NAMX supportcenter Supportcenter interaction via a phone will enable the lowest clarity but the greatest mobility
  • the NAMX supportcenter will consist of four primary departments:
  • Market Trading will enable members to interact with trade agents who can perform all market functions on behalf of members or provide systems and/or market information
  • Freight Logistics will enable transporters to easily interact with logistics agents for their searching, planning, and sourcing freight as well as navigation and location based services
  • NAMX will integrate commercial finance and banking institutions with the market in real time. Based on that integration, the administrators can easily control the maximum amount of cash consumed using the administration system, including the amount per manager and/or vehicle.
  • the finance and banking integration also enables NAMX to limit entry, pricing, searching, bidding, and negotiation based on the amount of floorplan credit versus available or secured cash to ensure the appropriate resources for each possible transaction prior to transaction initiation.
  • a buyer's floor plan credit is limited to 85 percent of the wholesale purchase price.
  • the buyer must have at least $1 ,501 in the bank or secured to bid on a $10,000 vehicle since the integration will not allow that particular buyer to bid more than $10,000 on a vehicle until such cash or security exists.
  • a seller owes $11,000 on floor plan with $1,000 in the bank or secured. Therefore, NAMX will not allow that seller to price or a buyer to bid on that vehicle below $10,001 because the cash or security does not exist to payoff the floor plan.
  • NAMX guarantees the buyer, seller, and floor plan payoff
  • real time integration of cash and/or security transparency with wholesale trade is critical to market integrity. In the same way that every vehicle in the market will be available for sale at the price listed or sold for the price negotiated, every bid will be guaranteed.
  • NAMX will be a cohesive market connecting all buyers, sellers, and facilitators while guaranteeing all vehicles, representations, deliveries, payments, and titles, NAMX will be a synchronous market. As a synchronous market, NAMX will enable every component of all transactions to flow instantly and simultaneously at a fraction of the current costs with zero risk. In short, NAMX will drastically increase the speed of vehicle wholesale in addition to NAMX market efficiencies and effectiveness.
  • the NAMX clearinghouse will manage the collection and disbursement of all titles and payments related to all transactions in NAMX, which could also include wholesale transactions completed at the auctions. Once a transaction is concluded, the clearinghouse will collect the title from the seller via an overnight package system embedded in the NAMX settlement interface. Moreover, NAMX will collect payment from the buyer through an electronic funds transfer. In addition to payment for the vehicle, the payment will also include any services performed on behalf of the buyer such as reconditioning and/or transportation. After the payment and a clean title is received, they will be disbursed appropriately wherein the seller's net proceeds will likewise reflect all services incurred. Every requirement of the settlement process will be subject to reasonably predefined timeframes for completion.
  • the member administrators will assign required settlement responsibilities to their associates such as titling, stocking, payables, receivables, floorplan, banking, as well as buying and selling.
  • their interface will immediately depict all outstanding activity for their area of responsibility. As such, the components of settlement and their timeframes will be shown in a settlement interface for each responsibility.
  • the associates responsible for titles enters the NAMX system, their interface will immediately depict all vehicles that have been wholesaled. For each title they have on hand, the associate will simply click the transaction in the interface. If their finance institution holds the titles, the finance institution associate responsible for that account will follow the same procedure.
  • the NAMX system will automatically print a sticker for the cover of an overnight envelope going to the clearinghouse, which will be prepaid by NAMX. Every other settlement responsibility, such as payables will use the interface with similar procedures, for instance: approval of electronic banking or floor plan debits. In brief, the settlement interfaces will enable a standardized and easy process.
  • the clearinghouse will electronically collect payment from the buyer's bank and/or floorplan, which will be subject to additional clearance if necessary.
  • the buyer's payment will include the wholesale price, the cost of freight, the buyer fee, and other services if applicable.
  • the title will be reassigned and sent overnight to the buyer or the buyer's finance institution depending on their agreement.
  • the NAMX clearinghouse will disburse payments to the seller's bank and/or finance institution if the vehicle sold has a floor plan balance. Based on the wholesale price versus the floor plan balance, the clearinghouse will either debit or credit the seller's bank account, which will likewise be subject to additional clearance if necessary.
  • the NAMX clearinghouse will disburse electronic payments to the transporter's bank and the auction if other services were incurred such as marshalling and/or reconditioning.
  • the settlement system will be easy to utilize and will guarantee everyone and everything every time while also incorporating all wholesale settlement parts into one process, thereby increasing the speed of wholesale trade at far less cost.
  • NAMX From entrance to exit, NAMX will enable at least $300 billion of secure, efficient, easy, guaranteed, and effective vehicle wholesale trade. On the face of it, the amount of NAMX systems may seem to complex or too much at once. However, it is precisely those systems that will enable utilization, implementation, and operations. With the exception of intelligence and automation, all systems are absolutely core and critical and thus, must be included. As for intelligence and automation, those systems will radically improve supply and demand and thus, bilateral acceptance. Since the entire system would be useless void of acceptance, those systems will reduce risk rather than increase it. 160 I Automobile Retail Integrations
  • NAMX NAMX will include retail systems. Those systems will be a natural and technological extension of NAMX wholesale systems. In other words, the development of retail systems will not cost as much as one may believe, especially relative to their value for several reasons such as:
  • the value of the retail systems will promote acceptance of the wholesale systems, thus, reducing the cost of wholesale systems to a greater extent than the cost of retail systems
  • Retail systems will promote far greater wholesale transactions and thus, NAMX revenue to a far greater extent than the cost of developing, deploying, and managing retail systems
  • Seller's price the asking or negotiated price that the seller must sell for in the market
  • Freight cost the actual cost of automobile transportation from the seller to the buyer
  • Freight time the actual time of automobile transportation from the seller to the buyer
  • Reconditioning cost the actual cost of vehicle servicing to consumer ready status
  • Reconditioning time the actual time of vehicle servicing to consumer ready status
  • NAMX the total buyer's transaction fees or costs for a vehicle wholesale purchase
  • NAMX will enable continuous access, accurate transparency prior to trade, and integrated execution of those factors. Moreover, NAMX will absolutely guarantee all vehicle representations, deliveries, titles, and payments for all wholesale transactions, which will also be a first.
  • NAMX will include a seventh factor that will enable dealers to leverage the wholesale market as their own inventory. The seventh factor is the dealer's desired profit margin over the total cost of all market factors for each vehicle. Dealers will simply enter and adjust as necessary their desired profit margin as a dollar amount and/or percentage in the NAMX administration system. With market leverage, dealers will be able to effectively retail vehicles that are in the wholesale market to their consumers in real time, thereby increasing their inventory from a few hundred new and used vehicles on average to hundreds of thousands and perhaps millions.
  • NAMX will leverage the wireless environment provided to dealers for their wholesale and inventory activities to capture and transfer the appropriate information at the right time.
  • the NAMX consumer information systems will enable the sales force to easily capture their customer's demographic and contact data in a non-intrusive way by scanning their driver's license in various ways depending upon the state. Because a copy of the driver's license is required by the dealer's insurance policy for test-drives, the process will be reasonable for consumers and less intrusive than writing it down.
  • the digital information will serve as a guide for marketing and inventory while also providing a basis for a relationship management system.
  • the NAMX product information system will enable all carmakers and suppliers to upload feature and benefit information, video, and animations to the NAMX vehicle database.
  • the NAMX consumer and product information systems will enable significant functionality as well as total dealer control.
  • the administration system will enable dealers to control the sales process from start to finish, including the introduction, criteria, demonstration, information, pricing, and the sales as well as finance management.
  • the combination of market leverage and information systems will radically enhance the vehicle sales process for each consumer, dealer, and carmaker. 167 I Automobile Demonstration Process
  • the NAMX retail system will enable the sales force to easily enter the customer's vehicle, budget, and delivery time criteria into the NAMX handheld or into a showroom kiosk.
  • NAMX will show a list of all vehicles that qualify in the dealer's inventory and in the NAMX markets. If the vehicle is in the dealer's inventory, the sales representative can simply direct the customer to that vehicle and/or other qualifying vehicles in-stock. If the vehicle is in the NAMX markets, the representative can direct the customer to the closest qualifying unit in-stock for demonstration purposes and/or simply review those vehicles in the showroom on a large monitor.
  • NAMX will provide an excellent feature and benefit presentation for every vehicle and option as well as comparison information in real time. If the customer requests a used vehicle, the system will also provide an extremely detailed and guaranteed vehicle representation for every unit in the markets by virtue of the NAMX certified inspection, which will apply to every vehicle in-stock that has been inspected. In short, the combination of real time and interactive feature and benefit information with market leverage will maximize consumer satisfaction, vehicle sales, and profits.
  • each vehicle on a customer's list can include the: 1) retail price; 2) delivery time; 3) cash down; 4) monthly payment; and 5) lease payment - on the lot and in the dealer's showroom.
  • the finance and lease payments will be calculated by matching the consumer data captured at the outset with a baseline credit score database, thereby enabling a non-intrusive process without a credit application and/or report until appropriate. Because market leverage will maximize retail and thus, wholesale values while the markets will minimize trade cost, dealers will be able to easily wholesale aging stock, thereby minimizing inventory pressure. Since retail prices will include profit margin, it will be simply irrelevant to the dealer if maximum profit is realized from stock or in the markets. Albeit an unnecessary reduction of profits, dealers will be able to increase the likelihood of their vehicles in stock or in a dealer group moving to the top of the search results with a dollar amount advantage over units in NAMX, thereby maintain total control.
  • NAMX sales control systems will provide dealer management with integrated negotiation, finance, and lease capabilities. Sales control will integrate the following critical factors of sales management among many other factors into one system for vehicle sales:
  • the usual format for negotiating the retail sale of an automobile is known as a four-square system, which consists of the: 1) retail price; 2) cash down; 3) trade-in allowance; and 4) monthly payment.
  • the basic idea is to start with a very low finance term and thus, a high monthly payment in an effort to: 1) instantly raise the customer's thinking, especially regarding the monthly payment; 2) draw the customer's attention to that specific part of the negotiation; 3) elicit the consumer's objection to the payment and then get a commitment.
  • the finance term is raised and the retail price is hopefully maintained.
  • the general approach is to utilize cash down, monthly payment, and finance or lease term to maintain the retail price as well as warranty and insurance products if desired.
  • the NAMX negotiation administration will enable the administrator to select the four-square system for price presentation and negotiation or the NAMX "pentagon system", which will incorporate market leverage into the process. Rather than discount price or lose the sale, the pentagon system will enable dealers to easily change the vehicle and/or options if the price, payment, or cash down exceeds the customer's budget while also enabling the optimal match between customer criteria, finance criteria, and the profit margin.
  • the pentagon system will likewise enable the dealer to select a singular presentation (one or few options) or a matrix presentation (many options) of cash down, finance term, and monthly payment. Regardless of the format, the pentagon system will enable a highly effective yet non-confrontational approach by providing customers with rich feature and benefit information, the ability to accurately appraise their own trade-in, and optimally match the vehicle and options they truly want with their desired price and/or budget. If the initial vehicle criterion fails to meet the customer's price and/or budget expectations, the salesperson or manager can simply adjust the price, vehicle, options, and delivery time criteria in the pentagon system to enable a collaborative effort with the customer.
  • the manager can collect a deposit from the customer and bid on one or all of those vehicles at the same time in the wholesale market on behalf of the customer and/or to increase profit margin. Since all bids in the pentagon system will include yet conceal the dealer's predetermined profit margin, all bidding can take place directly in front of the customer, thus, increasing consumer satisfaction and confidence.
  • NAMX will serve as the dealer's operating platform by connecting the various factors of wholesale and retail in one system. To the extent that needed systems already exist, NAMX will connect those systems and they will compete to earn the dealer's business on the platform. To the extent that needed systems do not yet exist, NAMX has already designed many other systems not described herein and will either develop and deploy those systems over time or simply license the technology to one or more dealership service providers. While the NAMX infrastructure and implementation is certainly aggressive, it is likewise undeniably logical and the value provided will be overwhelming, as will the returns on investments.
  • NAMX will not attempt to compete with the dealer management systems but rather, NAMX will attach to those systems.
  • dealers will be able to easily manage all wholesale and inventory activity in the NAMX system.
  • dealers will be able to manage all retail activity with the NAMX systems or continue using their DMS interfaces.
  • Administration and/or back office will initially use NAMX systems only for clearing wholesale transactions.
  • NAMX systems connect other service providers and the platform grows over time to include other parts of dealer operations, dealers will be able to use the NAMX platform for their entire business.
  • NAMX systems will reside in one localized application that communicates with NAMX through an extranet (private Internet connection) using 128 bit encryption.
  • the application itself will act as the initial key for connecting with NAMX while the biometric security will provide the second key. Because the application can only be installed by a NAMX business manager or district director, NAMX systems will maintain one of the highest data security systems in the world to protect member information.
  • NAMX will enable dealers to provide their customers practically any new or used vehicle they could want within four hours to three days in the vast majority of retail circumstances. While carmakers have invested over a billion dollars to reach a 40-day new vehicle order-to-delivery time, NAMX will enable a new and used vehicle order-to-delivery time close to one day in urban markets and about two days in rural markets on average. With the interconnected systems (page 20, paragraph 1), NAMX will reduce costs by billions of dollars while simultaneously increasing automobile sales. 176 I Efficient Wholesale Apprehension
  • NAMX Owing to the degree of fundamental improvement that NAMX will bring about, it is very important to address potential concerns with how those improvements will impact the industry. On the face of it, it may seem as if an increase of wholesale supply will reduce wholesale values. While the concern can be established with prima fascia logic, further consideration concludes that NAMX will increase wholesale values by virtue of greater supply. While the zero or near zero costs of entering vehicles in NAMX will vastly increase vehicle wholesale supply, it is impossible for that addition to decrease wholesale value since those inventories already exist. By moving the existing inventories to higher demand and with far greater speed at a fraction of the cost:
  • NAMX will provide every dealer with massive value, a few larger dealers could be concerned that NAMX (especially market leverage) will diminish some of their competitive advantages over smaller dealers.
  • the medium and small dealers are less likely to meet specific customer demand since they stock fewer vehicles and thus, NAMX will radically enhance their ability to satisfy their customers, which is the very intention of the franchise system.
  • larger dealers usually enjoy far greater assets such as human resources, capitalization, facilitation, location, inventory, and marketing.
  • larger dealers attract far more customers, trade-ins, and vehicles sales. Therefore, NAMX systems such as vehicle valuation and appraisal, inventory intelligence and automation, market and auction integration, and pentagon negotiation will improve their operational productivity to a far greater extent than the smaller dealers.
  • NAMX market leverage will likewise increase the sales and profit for larger dealers to a far greater extent than smaller dealers because they will have more opportunities to use NAMX.
  • the larger dealers will maintain their competitive advantages while smaller dealers will be able to serve their customers far better. In sum, all dealers will earn far more profit with lower cost and higher sales.
  • NAMX will undeniably increase vehicle sales and as such, improve production utility (amount of actual vehicle production versus production capacity) for carmakers
  • some carmakers will likely be concerned with the initial impact of inventory efficiency enabled by NAMX on their utilization of fixed cost, i.e. land, labor, and capital. Owning to the efficiency of NAMX, dealers will simply need less vehicle inventory to sell more vehicles at a higher price. As a result, dealers will initially order fewer vehicles from carmakers until inventory levels equalize with the amount of efficiency, which will inevitably increase dealer orders and production utility.
  • all carmakers are acutely aware of the need for more efficient inventory, they will want to understand the initial impact on their utility of fixed costs.
  • NAMX Due to the need for thousands of field agents (district directors, business managers, and certified inspectors) to enable the implementation and operation of NAMX, the initial impact of efficient inventory on production utility will be low because NAMX will require years to hire and train the appropriate number of agents. During that time of NAMX implementation and growth, sales will begin to rise at a greater rate due to inventory effectiveness than the initial fall of dealer orders due to inventory efficiency, thereby increasing overall dealer orders in a short period of time. Therefore, the initial impact will be shallow and short while the short and long-term impact will be very positive.
  • NAMX will enable near perfect transparency and accessibility between buyers and sellers as well as market leverage and retail integration while reducing cost and time by more than 80 and 90 percent respectively, it is certain that NAMX will increase wholesale trade.
  • NAMX estimates that potential transactions in the U.S. market are at least 10 million new vehicles and 20 million used vehicles in NAMX with another 25 million used vehicle transactions through the NAMX auction partners for a total of 55 million transactions or roughly 162 percent more than the current markets. In spite of potential, the NAMX financial model only considers current wholesale transactions and thus, bases all funding, growth, cost, and profit factoring on a market of 5 million new and 12 million used vehicle wholesale transactions or only about half of reasonable potential.
  • the NAMX financial model has required thousands of hours and is one of the most detailed as well as conservative models ever produced with well over one hundred thousand separate calculations and interaction with hundreds of firms for cost calculating.
  • the model does not calculate auction partner profitability because the costs of auction operations are simply unknown to NAMX. Nonetheless, the model does provide a conservative basis for estimating auction partner revenues.
  • NAMX estimates that the combination of NAMX market systems and freight logistics will streamline at least the following through auction partners: 1) auction transactions - 17 million with an average fee of $150 for about $2.5 billion of revenue; 2) auction reconditioning - 17 million at $85 per for about $1.4 billion of revenue; 3) NAMX reconditioning - 25 percent of 12 million used wholesale transactions equaling 3 million vehicles reconditioned at an average of $250 per vehicle for $750 million of revenue; 4) NAMX marshalling - 33 percent of 12 million wholesale transactions equaling 3.9 million with a fee of $25 per vehicle for $99 million of revenue; 5) vehicle inspections - 50 percent of 17 million equaling 8.5 million at $58 per unit for $493 million of revenue.
  • NAMX will increase the amount of floor planning revenue for auction partners while reducing their risk and costs of providing that service. Omitting floor plan revenues and market growth logic, the potential auction revenue exceeds $5 billion as a result of NAMX systems in the U.S. market alone.
  • NAMX the ability of NAMX to enable market efficiency and effectiveness will rely on a combination of physical processes and technological systems. Therefore, NAMX must recruit, hire, and train a significant amount of vehicle inspectors, business managers, district directors, and support as well as clearinghouse agents. While the technological systems will guide almost all of the training and physical processes, the number of associates needed to provide market capacity will present a clear challenge to NAMX growth. Fortunately, the industry opportunity combined with NAMX solutions will bring about more than enough revenue to aggressively recruit a strong team of talent with compensation, benefit, and bonus plans that will be significantly greater than competing firms offer for the same talent. The compensation plans for all NAMX associates and management will be performance based. Initial training will last two months and consist of modules and testing in text, video, and simulation formats with cross-training and ongoing performance monitoring. In part, NAMX will manage resource challenges by being a great firm for career-minded associates.
  • the partner administration systems will enable operating partnerships and revenue sharing with a few select firms that are equipped to provide market trade services such as payment clearing, title perfecting, and vehicle inspection to the extent possible. Regardless of the services provided by an operating partner, all activities will be performed using the NAMX systems to ensure quality, consistency, and precise accountability. 188 I Targeted Marketplace Implementation
  • NAMX will further reduce the challenges of providing market capacity with area and regional implementations. Owing to the roadways and weather, NAMX will initially deploy in the Southeast (FL, GA, SC, NC, TN, and AL) followed by the Mid-Atlantic, Northeast, Midwest, Central, and Western regions. Four months prior to market launch, NAMX will begin establishing marketplace memberships and partnerships with hardware installations and systems training in the largest cities first, followed by expansion to rural areas over time. As a part of the inspector training process and to assist with market critical mass, all vehicle inspections will be completely free two months prior to live market launch in the Southeast.
  • NAMX On the first day of live market trading capabilities, NAMX anticipates a minimum of 779 dealers, 40,000 vehicles, and 749 transporters in the market as supported by various auctions and other marketplace partners. As each region is preparing for launch, the next region will likewise be preparing for launch. Within two months of each regional launch, the next region will launch. In the same way that each new member brings added value to every other member, each new region will increase the value of NAMX to its members and thus, increase the adoption and transaction rates.
  • NAMX auction partners will be able to utilize the NAMX administration, inspection, valuation, and freight systems nationwide on the first day of systems readiness.
  • the NAMX auction partners will be able to vastly improve their vehicle inspection and representation capabilities almost immediately, thereby enabling far greater transaction rates within their current physical and online systems.
  • Owing to the administration and valuation systems their buyers and sellers will trade with almost complete transparency, confidence, and control while vehicle freight to and from auctions will be immediately more efficient and effective by virtue of NAMX freight logistics.
  • the initial NAMX systems will also enable the auction partners to provide their buyers and sellers with vehicle reconditioning transparency per vehicle in a menu format with push-button execution of those services.
  • the NAMX auction partners will realize appreciably lower operational cost per transaction while likewise increasing their transaction rates practically overnight and on a nationwide basis for a rapid return on their investments combined with a defined path to about $5 billion of revenue in the U.S. alone.
  • NAMX technological systems and infrastructure will bring significant value to the auction partners, their physical infrastructure and current technology will bring massive value to NAMX.
  • NAMX auction partners will play a substantial role in testing, improving, and proving the capabilities of almost all NAMX systems prior to launch.
  • the NAMX markets will realize far more critical mass than necessary for freight logistics and market trade while providing members and partners with proven systems on day one.

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Abstract

La présente invention concerne un système et un procédé permettant par exemple de distribuer des marchandises de gros, de commander l'interaction négociant/consommateur, de réaliser l'estimation de biens tangibles, de gérer les stocks, de faciliter la vente d'un bien tangible par un processus de vente aux enchères, et, de manière générale, de commander, distribuer et acheter des marchandises de gros et interactions associées.
PCT/US2006/025009 2005-06-27 2006-06-27 Systeme et procede pour commander, distribuer et acheter des marchandises de gros et interactions associees WO2007002680A2 (fr)

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PCT/US2006/024936 WO2007002650A2 (fr) 2005-06-27 2006-06-27 Systeme et procede de distribution de biens de gros
PCT/US2006/025009 WO2007002680A2 (fr) 2005-06-27 2006-06-27 Systeme et procede pour commander, distribuer et acheter des marchandises de gros et interactions associees
PCT/US2006/024882 WO2007002624A2 (fr) 2005-06-27 2006-06-27 Systeme et procede destines a faciliter la vente de produits tangibles a travers un procede d'enchere
PCT/US2006/025182 WO2007002754A2 (fr) 2005-06-27 2006-06-27 Systeme et procede d'evaluation de biens materiels
PCT/US2006/025011 WO2007035195A2 (fr) 2005-06-27 2006-06-27 Systeme et procede de gestion d'inventaire
PCT/US2006/025192 WO2007002759A2 (fr) 2005-06-27 2006-06-27 Systeme et procede pour commander l'interaction negociant/consommateur
PCT/US2006/025015 WO2007002684A1 (fr) 2005-06-27 2006-06-27 Systeme et procede pour realiser une estimation de biens tangibles

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PCT/US2006/025182 WO2007002754A2 (fr) 2005-06-27 2006-06-27 Systeme et procede d'evaluation de biens materiels
PCT/US2006/025011 WO2007035195A2 (fr) 2005-06-27 2006-06-27 Systeme et procede de gestion d'inventaire
PCT/US2006/025192 WO2007002759A2 (fr) 2005-06-27 2006-06-27 Systeme et procede pour commander l'interaction negociant/consommateur
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WO2007002680A3 (fr) 2009-04-16
WO2007002624A3 (fr) 2007-05-18
WO2007002754A3 (fr) 2007-06-21
WO2007002759A2 (fr) 2007-01-04
WO2007035195A9 (fr) 2007-07-26
WO2007002684A1 (fr) 2007-01-04
WO2007002650A2 (fr) 2007-01-04
WO2007035195A2 (fr) 2007-03-29
WO2007002759A3 (fr) 2007-06-21
WO2007002754A2 (fr) 2007-01-04
WO2007002650A3 (fr) 2007-03-08
WO2007002624A2 (fr) 2007-01-04

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