Jim- Thank you for sharing our story with your audience. We appreciate people like you representing and reporting on our industry. Your team does a great job.

Amazon effect

Yesterday it was announced that Amazon has decided to pull out of their plans to relocate headquarters to my own city, New York City. Once again, the tail is wagging the dog in New York City as the smallest of minds in the smallest number, manage to win their way to costing New York City taxpayers millions of dollars.

Amazon had promised 25,000 jobs in HQ2 all to be in the range of $100,000/year. That would have generated over $2.5 billion in income to Queens, New York. In addition, the income tax generated would be over $1 billion to federal state and local municipalities. This is simply for payroll tax. Those 25,000 new jobs and residents would influence the local community and local economy in ways that would generate billions of dollars in additional revenue and thousands of other jobs being created in the process. Other industries impacted include restaurants, hotels, transportation, police, firemen, teachers, beauty parlors, service stations, nightclubs, taverns, and every other business imaginable that is currently struggling to make ends meet with skyrocketing city costs and burdensome taxes.

Queens had a once-in-a-lifetime opportunity to help solidify New York’s presence as the East Coast tech capital of the United States. How could New York and its representatives be so shortsighted? State senator Michael Gianaris seemed to celebrate the loss of jobs, income, and revenue that Amazon would bring to the community.

Will additional tax dollars be generated by not having Amazon here? What about all the new construction in Long Island City? Who’s going to occupy those apartment buildings? Tax abatements are routinely given to drive business to zones that would help the local community. This was a golden opportunity to see Queens flourish but instead, as usual, the special interest groups backed by people with a vested interest in seeing queens go backward, won again.

Many people in the community were rejoicing at the opportunity to have such an important business player such as Amazon in our backyard. Our community has always welcomed diversity and inclusion which apparently doesn’t apply to successful tech companies coming with incredible opportunities for the communities at a time when it needs it the most.

Sadly, the concerns of few have won over the needs of many. The community, the borough, and the city are the immediate losers as undoubtedly business investment in this area will evaporate.

It’s understandable that Amazon pulled out, receiving a lukewarm reception from the city is in stark contrast with the other cities and states fighting to have Amazon. The tax revenue that would’ve been generated when they located to our community will now be the burden of the taxpayers that remain in Queens. It’s no wonder New York is no longer known as a business-friendly state. Nice job guys nice job…

Amazon effect

As segmented as the modern marketplace has become, one lone retailer has impacted nearly every facet of commerce, no matter the industry – Amazon. What started in books has now exploded to reach its ever-expanding tentacles into everything from cloud storage to grocery delivery, and nearly every possible point in between.

In fact, Amazon has grown to the point where it has taken almost mythological proportions, enamored and envied by some, detested and reviled by others. No matter what your personal opinion on Amazon might be, as a business owner or entrepreneur, you cannot deny the fact that what started as a little online bookstore in a Seattle garage has become the stuff of legend.

To that point, Amazon is a living, breathing example of what innovation, tenacity, and a forward-looking point of view can do for any company, including your own. The Amazon Effect is very much real and ready to help guide you down your own path if you’re willing and able to follow its lead.

We’ve taken lessons gleaned from concepts like the Amazon Effect to heart at Paragon Honda. However, as intimidating, frustrating, or overwhelming as today’s dynamic marketplace might be, I assure you of this – something like the Amazon Effect should motivate and inspire you to accel, not fill you with terror.

The Amazon Effect and Reinvention

While the Amazon effect might have started as a case study in supply chain logistics, it has become more of a catch-all to a way of operating or even looking at the market in a way that refines, redefines the status quo. In short, the Amazon Effect is about intelligent disruption, refusing to accept things as impenetrable or immovable but just in need of a new perspective.

To give the concept the proper context, think about what the supply chain was like just a few decades ago. It was big and cumbersome, inflexible and lacked any semblance of agility. Historical sales figures exclusively informed product shipments and inventory levels so any shift in consumer preferences would inevitably require months for distribution analytics to catch up.

Now think about the modern supply chain and how it has evolved over the last 20 years, primarily due to Amazon and its revolutionary distribution model. The marketplace is now almost entirely pliable, able to instantly bend and contorted self according to the ever-shifting demands of a fickle consumer base with interests that change by a stiff breeze.

Rather than waiting four to six weeks for an order to arrive, customers now expect deliveries to be sitting on their doorstep hours from the time of the initial order. This concept, in a nutshell, is the Amazon Effect – a complete reinvention of standard business practices, changing the customers very definition and perception of “good service” across every vertical.

Learn, Don’t Shy Away From the Best

You might be asking yourself what the Amazon Effect has to do with you and your own ambitions. Don’t look at the concept is something strictly about the supply chain but, instead, about a different way of looking at modern business. There are always going to be competitors that are bigger, faster, with more capital and for more resources available, but that doesn’t mean that your best response is to run in the opposite direction.

Instead, follow Amazon’s lead and make the absolute most of what you have at your own disposal to carve a niche out of the market. Just as Amazon did in the 1990s, leverage the benefits of readily available technology to maximum effect. Amazon didn’t invent the internet, nor did they create Federal Express/UPS, instead Amazon leaveragered the stuffing out of these existing technologies/platforms to provide unheard of service for their clients across multiple business models.  Automate your marketing message across social media, email campaigns, and any other distribution channels you think beneficial to establish brand identity and a unique, compelling narrative.

The point is this – take Amazon’s lead and never stop innovating, disrupting, and reaching. Make the most of the tools available to maximize impact. And most importantly, always take direction from the best in class, bending their innovative thinking, practices, and procedures to suit your specific needs.

Can you imagine the day when your customers can ask their Google Assistant to schedule their car for service? Or if their car is ready to be picked up from your service department? Well, that day is here for Brian Benstock, Vice President add General Manager of Paragon Honda who’s group has developed this exciting new technology.

READ THE FULL ARTICLE HERE.

We had an incredible night at the Classic Car Club Manhattan (CCC) earlier this week. Paragon Acura was able to deliver a new black 2017 NSX to the Classic Car Club Manhattan using Paragon Direct, a completely online purchase process where customers never need to visit a dealership to purchase a vehicle.

We celebrated with a gathering of 100+ Classic Car Club members last week. CCC members were able to get a personal look at several Acura NSX’s an Acura TLX GT in a beautiful facility set on the Hudson River, and NSX designer Michelle Christensen was on hand to mingle with the crowd and answer questions.

Thank you to the Classic Car Club Manhattan for their partnership, Chuck Kendig for moving mountains to get the TLX GT to the facility in time, and Ms. Christensen for helping to make this event a memorable and unique experience for the Acura brand.

 

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I had the privilege and honor of speaking to a group of Honda folks who often go unrecognized yet are a pivotal and critical part of our industry. The logistics and transportation operators do the heavy lifting of transporting our product from the factory to the showrooms and I was honored to be able to spend a few hours with them last week. 

A big thanks to Honda for their kind and generous hospitality.

Pictured: Assistant Vice President of American Honda Chuck Kendig and I at the Logistics Conference.

 

 

CBT News

Last month I had the priveldge of joining CBT News to discuss how dealerships can transition for the future of the auto industry.  The future is here.  Dealers need to accept the reality that the old business model is dead.

Change is not going to happen overnight so it is important to keep supporting the current business model while slowly adopting the new one.  I am proud to work with some of the best minds in the industry to introduce Paragon Direct – a dealership without walls.  Anything customers can do in the store can now be done from the comfort of their homes.  The new business model is all about brining the product to the customer, and the sooner we realize that the better off we will be.

Click Here to watch the full interview. 

Paragon DIrect

Paragon is proud to introduce our new program, Paragon Direct.

We provide our customers with unmatched levels of convenience and flexibilty by allowing them to test drive, purchase, or service their vehicle without ever leaving their home.  There is nothing more valuable than time, and we are pround to offer superior service to our Paragon family.

For more information, click the videos below.

PD Service    PD Sales

 

“Think Amazon Alexa, a bot. I can order coffee on Alexa, and know those boxes of Starbucks K-Cups will be in my office at 10:30 a.m. tomorrow. They come from six or seven different sources. Amazon doesn’t care what it takes to get that order to the customer. They get it here. That’s a perfect transaction.

The marketer in me wonders, “If we duplicate that, how many more transactions can we do?”…

Click Here To Read More