U-R-G On the Go
An informative podcast for the United Recyclers Group. Each week we will feature an entertaining guest that will share their knowledge and information with you, providing you with tips and tools to help you become a more profitable business.
U-R-G On the Go
Lower Fees, Higher Profits: The Future of Automotive Recycling Inventory
Are excessive auction fees eating away at your profits? Meet the company that's challenging the status quo in salvage vehicle sourcing and putting more money back in recyclers' pockets.
When Dan Oscarson walks into a recycling yard and mentions Salvato Auctions' business model, he typically gets two reactions: "You guys must be crazy" immediately followed by "I hope you succeed." After three decades in the industry, including years at IAA, Dan understands why. The salvage auction marketplace has operated as an unchallenged duopoly for too long, with fees steadily climbing to 25-30% of vehicle purchase prices.
Salvato Auctions represents a fresh approach – selling insurance vehicles where they sit through a decentralized model that eliminates unnecessary transportation costs and vehicle handling. This streamlined process allows them to guarantee 20-40% lower buyer fees while providing the same quality insurance vehicles recyclers need. Their timed auction format with proxy bidding ends the inefficient practice of monitoring multiple screens all day waiting for vehicles to come up for bid.
For smaller recyclers especially, this model could be transformative. The ability to secure inventory without the burden of excessive fees creates an opportunity to compete more effectively with larger operations and consolidators. With digital titles appearing in buyer dashboards within hours of sale and a simplified fee structure, Salvato is addressing the pain points recyclers have endured for years.
While currently operating in Texas, Salvato aims to expand nationwide as more insurance companies embrace their model. The company invites recyclers to participate in their growth by registering at salvatoauctions.com/URG, where URG members receive a $100 account credit. Supporting this initiative means contributing to more competition in the marketplace and potentially reshaping how the industry sources vehicles for years to come.
Welcome to the URG On the Go podcast. You're there and we are here. This URG podcast is the true voice of the automotive recycling industry. It was created for the pros that have a need to know that are on the go, that have a need to know that are on the go, and I want to thank each and every one of you for making it one of the best auto recycling podcasts in the industry. I'm DJ Harrington, your co-host, better known as the Cardiologist, and the other co-host is the talented Amanda Morrison, the Director of Member and Vendor Relations for URG. Amanda, how are you this great day?
Speaker 2:I'm doing great, DJ. Thanks so much for coming on today. It's a beautiful day here in Texas and our guest is in Texas as well, so how's the weather over there doing?
Speaker 1:In Atlanta if you were watching the Braves Blues again, it was 70 degrees.
Speaker 3:And it's beautiful.
Speaker 1:Yeah, it's beautiful today Blue, white puppy clouds. It's really, really nice in Atlanta, but this is a company that we all need to listen to, so every one of our listeners should grab a pen, a pencil or, if they're on their iPhone, something to take notes, because your guest is going to help them improve their bottom line. So I'll turn it over to you, amanda, because I'm looking forward to it myself.
Speaker 2:I completely agree with you, dj. It's something that's definitely needed within this industry. You, dj, it's something that's definitely needed within this industry. We've got Dan Ostersons from Salvato Auctions and I want to make sure I'm saying that right. So it's Salvato, and so we wanted to discuss auction buying. You know, when was the last time you guys looked at your auction fees or thought about who's really profiting in your buying process? Today, on the URG On the Go podcast, we are talking to Dan, who is helping recyclers source vehicles, as well as working with them and working with URG members, and is now an associate URG member. So, dan, thank you so much for coming on today, and we'd love to have you on and learn a little bit more about what you guys are doing.
Speaker 3:Thank you, it's a pleasure to be here.
Speaker 2:Awesome, awesome. All right, so I just wanted to get started. So, dan, you've been in the game for 30 years now. I know we originally said decades, and so it's been a long time that you've been in the industry. Can you tell us a little bit about your background and how you got involved in the automotive recycling industry?
Speaker 3:I sure will. It was over 30 years ago and I started as a branch manager for Underwriters Salvage Company in Houston, texas, but that's where I cut my teeth and learned about this amazing industry that kind of happens in the shadows. I was able to work in Houston for seven years, in Arizona for three years and then moved into more of a corporate role in marketing as IAA acquired Underwriter Salvage Company. I worked for IAA for the other couple of decades and in various roles, from marketing to buyer development and global market development as well. So my background really is a lifetime of learning and work in this space, working for one of the big duopoly companies and understanding how they do business and all the pitfalls that are also present in our industry today. And that's what I want to talk about today is how Salvato Auctions can maybe help avoid some of those pitfalls and look at things a little bit differently okay, that's amazing.
Speaker 2:Yeah, and I think you know, like you were saying, I think this is something that is such a need in the industry and I know dj has, um, you know, was excited about interviewing you and and hearing what you guys have to say and what's new and different and what your guys's process is. And, um, you know, you've traveled the world by building buyer networks, it sounds like, and so we'd love to kind of hear what are some of the biggest changes you've seen over the years when it comes to how a recycler sources their inventory.
Speaker 3:Well, that's always the challenge. Right is, where can I get the best deal and still make a profit? And it's become more and more difficult. Clearly, the biggest change over my career was the introduction of the internet and online bidding. Buyers were skeptical at first what do you mean? Buy a car off a picture? And they quickly overcame that because they came to trust the data that was provided. They began to know what pictures meant and what kind of conditioned vehicles were in.
Speaker 3:So I heard one buyer tell me that when everything shifted from the live auction to the internet, that they said well, now we're buying expensive pictures and they are and yet there's so much more information that's provided and with the amazing tools that are out there with data integrations, there are ways to really you know, really know and understand what you are buying from that data. So that's been the biggest change. I would say. Connection with the internet is to use JD Power data interchange, data and other data with inventory systems like the BidBuddy system or the BidCall Direct or these other bidding systems and platforms that help buyers to really know what they need to buy, what they can afford to pay for cars without overpaying. Those are some of the biggest changes that I've seen over the years.
Speaker 2:I see, okay, that's very interesting. A lot of different insight in there and it's kind of all summed up into one small piece of information, right. I feel like you can probably go on for hours about the things that you've learned and things that you've, and I think that's what's cool about you know Sabato Auctions is that you have all of this industry knowledge and coming into it and being able to plug that in and really be able to work with the recyclers one-on-one and engage with them and I think, part of your guys' associate membership, you guys were doing a deal for our URG members as well. Do you want to touch base a little bit on what that looks like as well?
Speaker 3:Yeah, let's introduce that now at the beginning of the show. For verified URG members, we have a $100 account credit offer for anyone who registers during the month of August. If you'll sign up at salvatoauctionscom slash URG, you will automatically get a $100 credit on your account to use towards your first purchase or future purchase. Registration is free, so there's really no reason not to sign up and get registered with Salvato Auctions. Go to salvatoauctionscom slash URG and receive that $100 free account credit.
Speaker 2:We always love some free money. That's awesome and we love that you guys are doing that for our URG members and I think that's going to be something that really gets people in that front door and gets them interested in what this looks like. So what do you think people outside this industry don't understand about the value that comes out of these salvage vehicles? Do you have some insight about you know what the differences are about those views?
Speaker 3:I sure do. I mean people ask me you know what do you do and you know how? Do you give an elevator speech about this industry that works largely in the shadows? I mean, people see an accident car on the side of the road but then it just goes away and you don't really see it again and you don't hear from it and you don't really know what happens to it. I mean, obviously some are repaired in a body shop and they go back on the street, but what about those ones that come off the street? I've likened it to the crumb at a picnic. You know you've got a plate full of cake and a crumb falls on the ground.
Speaker 3:You don't go after the crumb because you're holding an entire piece of cake in your hand but, that crumb gets picked up by an ant or two and it goes underground and it feeds an entire industry and network of activity that nobody has any insight to. And that's what these salvage cars really do. Right, they come off the street, but it doesn't mean they go away. I think one of the biggest misconceptions that people in general have about this industry is it starts with that label of total loss. The implied meaning of value with total loss means like zero value, and that is the furthest from the truth. It only means it is a constructive total loss, which is a mathematical formula. It has nothing to do with the value of the actual salvage and all of us we recognize and know the inherent value in all these vehicles.
Speaker 3:It's the public's looking at these cars as what's wrong with it versus the way we look at it with what is still right with it and what can be done with it. And I've seen over the years through my career how that difference can make all the difference in terms of how people approach these cars, what they're able to pay for them and what they do with them. I mean we not only have the recycling industry but I will step out for just a minute. There are also rebuilders here in the US that will rebuild a car and sell it on a rebuilt title. And then there are exporters who take cars overseas and they repair cars and provide affordable transportation for people in countries all over the world. And that process is an amazing process that takes something that has what the untrained eye sees as very little value, and it is the ultimate recycling story. If we can put that car back together and drive it another 10 or 15 years makes all the difference in the world.
Speaker 3:And it creates jobs along the way for everyone here at home and abroad. I mean in towing, transportation, in the parts business, selling the parts and meeting the needs of the economy. These vehicles feed that entire industry and that's where it's so important that we help support this industry and all the people whose jobs and livelihoods are affected by the efficient processing of these vehicles Right 100%. The problem with the industry is that it has become very expensive doing business the way the current auctions are operating, which is rather outdated.
Speaker 3:I've been around this industry long enough to remember the days of conducting auctions in the rain and all the buyers had to come into the salvage pool where the cars were pooled together and people would raise their hand in the rain and buy cars. Well, with the internet, you no longer have to come to a central location and buy cars, and Copart and IAA have both built their business model around that centralized operation. Well, we don't have $100 billion to get 20 or 40 or more acres in every major US city to operatea competitive salvage pool. But it's also not necessary today and there's ways to go about that. And that's what Salvato is trying to do is to come up with a new and better way to take these vehicles to market and put more of the money back into the pockets of the sellers and the buyers, and not just to the auction house.
Speaker 2:I love that and I think you're speaking directly to the recycler's heart whenever you say that Saving on those fees.
Speaker 3:I've been since I came back to Texas. I spent after I left IAA. I spent a year overseas. I worked for Marhaba Auctions in Dubai and helped them expand, open new locations and implement some best practices from US auctions into their operations. I had a great time overseas, helped me learn more about international markets and foreign buyers, but during that process I can tell you that it and coming back to the US, since I've been back, I've been to visit probably close to 100 recyclers and rebuilders here in the state of Texas. I'm currently based in Dallas and.
Speaker 3:I've been all around the state talking to these guys and when I walk in, of course they don't know. They say what's a Salvato? They don't know what Salvato Auctions is. We're an unknown entity, but when.
Speaker 3:I say we're a new auction company competing directly with Copart and IAA, with 100% insurance vehicles and 20 to 40% lower auction fees. That's all I have to say. They're already sold. They understand the concept of we need competition in this space and we haven't been able to have another source of these cars. They're all locked up and they're all crying because of the fees and how they've gone up unchecked over the years. And every year when that email comes out and they read it and they say starting Monday, the new auction fees are going to be this and they stare at it, and then they say, well, okay, because they don't have a choice, there's nothing they can do, and it's sad.
Speaker 3:So we want to put more of the money in these transactions back into the place where it belongs, with the sellers and the buyers, by operating with a less expensive operating model and lower auction fees, passing that savings on to those to whom it rightly belongs.
Speaker 2:I love that, that's. That's like I said. You're speaking right to the recycler's heart and I think you know DJ's has a lot of experience with this, this type of information too, and and what he's done with the towing industry and he's probably just loving this, all of this.
Speaker 1:Loving it. Hey, listen, he got me from hello Is there a country song called that? He got me from and the way he did it, the way he said, and come Monday morning the prices will be and you have no choice because you're either going to go those two operations or nothing. This, really, you got my ear and now I'm sitting here saying, okay, I'm in Birmingham, Alabama, the URG membership goes worldwide and so all of a sudden you sit here and the podcast. We have 387 listeners outside the United States, but we have a ton inside the United States. Stan, what if the guy's in Birmingham Alabama, what is his option of using your facilities?
Speaker 3:Well, here's the beauty of it. We have cars for sale now. Our first auction starts tomorrow. I'll talk about that later. But they are able to. If you're in Alabama or Alaska, it doesn't matter, or you could be in Albania, anywhere in the world, through the internet. Again, the auctions are online. The vehicles are there. We take pictures of the cars the same way that the auctions are online. The vehicles are there. We take pictures of the cars the same way that Copart and IAA do. We have all the information that you need to make an informed decision.
Speaker 3:Buyers I've talked to aren't afraid of paying a fair market price for the car. They're just uptight about the fees going on unchecked. The auction fees today are 25% to 30 percent of the auction price, of the sale price, and let me tell you that insurance companies also recognize that some of that money should be theirs. That should be going toward the price of the car. If a buyer has five thousand dollars to spend, why should he only bid for? You know the rest of that money is going to the auction and you see their quarterly reports on Wall Street and the millions of dollars that they make. We think that we can do that less expensively. So the guy in Birmingham can buy cars, have them towed to his facility or the guy overseas can buy cars same way and have them delivered and exported through a freight forwarder through the port.
Speaker 3:All of our cars currently with the insurance companies that we are doing business with today are currently located within the state of Texas, so we are not yet nationwide. But I want all of the listeners to think about when they started their business. If they have a recycling yard, you didn't start with 500 cars. You started with a handful of cars or maybe you bought somebody. But you get my point Right. You're starting out small and you know insurance companies are rather risk averse and they take a long time to make decisions.
Speaker 3:But I can tell you that the entire industry is standing around the lake looking at these first companies who have been, uh, courageous and bold and willing to take that risk, and they're standing around the lake waiting for everyone to say, hey, come on in, the water's fine. And we expect this to blossom and grow like popcorn once we reach that temperature of demonstrating value, demonstrating that we can get a competitive price for our cars, demonstrating that we can reduce cycle time for the insurance company and demonstrating that we can put more money back in the pockets of our buyers by having lower auction fees and they are guaranteed 20 to 40% less than Copart and IAA. And people have asked me, dan, how do you say 20 to 40%? Why isn't it one or the other? Well, as many of the listeners will know that the high volume buyers at Copart and IAA pay a lower auction fee.
Speaker 2:Right.
Speaker 3:Buyers who buy less vehicles pay a higher fee. So if you're a high volume buyer, you're guaranteed you'll save 20%. If you're a low volume buyer, you could save 35 to 40% on auction fee. So that's why we have a range. It just depends on the type of buyer that we're talking to. So, anyway, those are some of the things that we've put in place and why we've done it and the benefits for a guy in Birmingham or in Texas or out of country, either way, all have access to the same fresh insurance vehicles. All right.
Speaker 1:So your first sale is coming up this week. That's right, and we can promote it. Let's do this, dan. Let's take a break right now. Let's take a break, and when we come back after a commercial message, we'd like to learn more of how we can partner together. You got it, so we'll be right back folks.
Speaker 4:URG can help you streamline your business for maximum efficiency and increased profits. Access powerful software and unique tools. Receive top-level training with industry experts. Network with hundreds of recyclers. Employ e-commerce solutions to boost business. Receive support, resources and discounts Starting at just $150 a month. It's the smartest investment you will make for your business this year. Go to u-r-gcom and click on Become a member. Your path to a profitable future is just a click away. That's u-r-gcom.
Speaker 1:Welcome back listeners. You know you're listening to URG On the Go podcast Every week. Amanda and I do our best to bring you valuable information, like we are right now, to bring you valuable information like we are right now. Dan's doing a great job. I want you to continue listening. We're available on Spotify, iTunes, Pandora, Stitcher, iHeartMedia or wherever you get your podcasts. So, without further ado, Amanda, this is really a great program and I agree with Dan. He starts small and all of us at URG and all of our listeners, the PRP members, the ARA members that listen to this worldwide, all of a sudden sees this is an acorn that's going to grow and we're going to be part of the growth. Yeah, I think that was great that you got them on and so this will be good.
Speaker 2:Yeah, it was. It was a big push for us to get you guys on here. We were really excited to have you on because, you know, I think this is such a big issue within the industry and something that needs to be addressed, and it's so great to see companies, you know, coming up and trying to take advantage of that niche. That really needs to be. You know, it's honestly a thing that's been needing to be addressed for quite a while, right, and so what, dan? What are some of the biggest mistakes you feel recyclers are making during an auction? Can you give us a little bit of insight, since you've been, you know, doing this for so long?
Speaker 3:Yeah, in thinking about that, I think that it's not so much mistakes that are being made, but maybe just the way that recyclers are going about the process right, and it's because it's the process that they are being served, it's the process that they have to work with. For example, how many of you out there listening have 14 monitors up on a wall in a dark office in the back room and people watching auctions mindlessly all day, waiting for item 472 to come up for bid?
Speaker 2:I've gone to yards and seen that, those 14 screens. It's crazy, it's an inefficient process.
Speaker 3:It's a waste of time, but you know buyers want to be there in the moment and I understand that, but at the same time there's there's so much volume that it's very difficult. So I think you know spending too much time waiting for cars to sell is in many ways holding buyers back. So you know, biggest mistakes it's not really a mistake, but it's. It's a weakness in the system that I think everybody falls subject to because of the way things are done and they don't really have a choice. But that's part of what we're trying to do is to change that auction format a little bit and offer a timed auction with proxy bidding where buyers can come in, drop a bid anytime during the week and then come back Wednesday morning at 9 am Central Time and see if they were awarded the car or not.
Speaker 3:It's very simple. There's an opening bid, people can bid. If you want to bid $2,000, you drop your max bid of $2,000. If the current starting bid is at $1,000, you instantly become a high bidder at $1,050, one bid increment above the opening or the current bid. If somebody else comes in and bids 800, you then would become the next high bidder. Or, excuse me, if bids let's go higher 1500, you would become the next high bidder at 1550, and so forth until time runs out, and so you put your max bid and walk away. Our auctions open on Thursday morning every other week and close on Wednesday every other week, so we have six days of bidding where people can come and place their max bid without having to wonder, watch and wait for vehicles to come across the block.
Speaker 2:Okay, that makes sense, and so you're switching up kind of how auctions are essentially run. So how do you think this will shift? So obviously, how do you think auction platforms have shifted power away from the buyer in recent years? Like so you guys are, I think, trying to kind of give it back to the buyer right and and kind of give a little bit more control and not have such hefty fees. What? What do you think has shifted over the last few years? Do you think it's just the need that's? You've seen that need.
Speaker 3:Well, the big shift is the duopoly that has total control over this marketplace. It's been very difficult for anyone to compete with them on the current terms of engagement $100 billion to get 20 to 50 acres in every major city. That's just not possible. And, as I mentioned before going to see recyclers here in Texas, when I walk in and tell them what we're doing, they look at me and they say two things. They say number one you guys must be crazy. And in the same breath they say man, I hope you succeed.
Speaker 2:Let's do this yeah.
Speaker 3:Because they know that the industry needs this right. There needs to be another option, and the more support that we have from buyers in this group and elsewhere, the more we'll be able to demonstrate our process and validate that with the insurance companies and get more of the business process and validate that with the insurance companies and get more of the business. And so, as we pull cars away from those two auctions, we'll be able to offer the same great product but at a lower price, because our operating process and costs are in fact lower.
Speaker 2:Okay, that makes total sense. I love that. I love that, dj. I feel like you have so much experience in the towing industry and all of that Did you have any questions that you wanted to slip in there? I feel like you've been sitting here patiently and loving this podcast.
Speaker 1:I love the podcast and I think Dan has so much knowledge that he could share with all of us. I'm sitting here saying, OK, how could we help all of us? I'm sitting here saying, okay, how could we help If, Dan, you had four or five wish lists? What would you wish that we URG, Team, PRP, ARA, all of our listeners? What could we do to enhance your sale? And if it's twice a month, what are some of the tips that you want us to know so we can help you grow? Because you're right, If we help you grow, it's going to help us eventually more and more for all of our brothers and sisters in this industry, Correct?
Speaker 3:Well, the main thing that can happen DJ I appreciate you asking is for people to participate. Obviously, at the end of the day, the key to any auction is to maximize a selling price for the seller and the interest of the seller. Right, there's a lot of services and other things that happen along the way for the buyer, but at the end of the day, there is a product that needs to be liquidated and it needs to receive a fair market price. Your listeners can help us by registering. It's free of charge, there's no cost to register but to also to participate in the auction drop a bid, place a bid, get familiar with our system and participate. The more participation we have, the stronger our position will be to argue for more volume from the insurance carriers that are providing us vehicles. That's the main thing. Just have everybody sign up. We want them to be able to be on our mailing list so they can keep up with our growth, our activity, new services and other things that we bring to the marketplace. But that would be the main thing would be to just sign up and become registered, but not only be a buyer, but to be a bidder, to be an active buyer and participate in the auction process. That's really the main thing, and I know buyers like to keep their sources secret. They don't like to talk about it.
Speaker 3:But this is an industry changing challenge that we've taken on and we do need people to talk about it with their peers and to make others aware of what we are doing. And hey, did you hear? There's somebody out there trying to compete with Copart and IAA and they can get the line. Oh, they must be crazy and oh, I hope they succeed. They'll hear it too. But but we need that word to spread because it will help us grow. It will give us strength with the insurance companies, who need confidence to know that when they make a move like this, that it will be for their good and for the good of the products that they're selling, these cars that need to be liquidated. So those are the big things that this industry can really help support us with.
Speaker 1:Okay and I ask you a question. Amanda Say that I am a recycler in Oklahoma City and I bid on a vehicle and I get it on this first sale. Then two weeks later you have another sale. I want to buy the minimum of two vehicles because I have a flatbed truck that I could bring over to Dallas pick up not one vehicle but pick up two vehicles. That would make it less expensive of me bringing it back. My question is will you hold that vehicle for me without a fee? We do If I buy the first vehicle. You see what I mean, will you?
Speaker 3:hold that vehicle for me without a fee?
Speaker 1:We do. If I buy the first vehicle, we give six days to pay for and pick up vehicles.
Speaker 3:So I know that there's a gap in between our auctions. So no, there would be some daily storage involved there, probably, but at the same time you might be able to get two cars in one auction, which would not create that, it would enhance me.
Speaker 1:Yeah. It would enhance it if I could. If I could buy two vehicles in the one auction, it would really enhance it of me transporting it back.
Speaker 3:Yeah, it sure would, and so I mentioned before that our vehicles are in decentralized lots. We sell vehicles where they sit in decentralized lots. We sell vehicles where they sit so your hauler would be able to go to that tow yard or that storage center where that vehicle came after the accident and pick it up from that location. You know, the beauty of doing that is we are utilizing unleveraged land. I mean these tow operators that pick vehicles up from the accident scenes or whatever. They have extra capacity they can hold and store these vehicles, which is fantastic. We can leave it there. We can pay them to store the car there instead of have it hauled off to Copart or IAA, so they make a little more money. They don't mind making a little more money from Copart or IAA and keep it out of their pockets. They'd like to keep it for themselves.
Speaker 3:It minimizes incremental damage because we're not moving the vehicle, we're not handling it, we're not putting it on forklifts and bouncing them around the yard to move them from one location to another. We sell them where they sit so we're able to take cars to market faster, we're able to minimize expense with unnecessary movement and we reduce incremental damage or incidental damage that could potentially happen through some of those movements. So, all in all, it's a great process and a completely new way to look at selling these vehicles and by doing it faster, they don't need to stay in storage as long. Like I said, they go to market faster and we're able to produce titles much more quickly, also where titles will appear in the buyer's dashboard within hours of the sale. So really exciting concepts that are moving the industry in a new and better direction.
Speaker 2:Yeah, I agree with that. Well, and I think the role of transparency too. You know, having you guys be so transparent about the way you guys are doing business, I think that's also very key. So what do you think the role in that? And like having recyclers ask questions and come to you about this auction, how do you feel like that? I feel like it's progressing you guys pretty quickly just because of the word of mouth and being able to kind of explain what you guys are doing so differently. Is that right?
Speaker 3:Yes, we've heard from people all over the country and in other countries. In fact, we've exported our first car to the country of Georgia. So you know all of our process works. The digital title that was produced for that vehicle was accepted by Customs and Border Protection. They were able to export the vehicle and load it into a container and send it to the other side of the world. So all of those things are working.
Speaker 3:Everyone's excited about what we're doing.
Speaker 3:Like I said, everyone seems to be pulling for us.
Speaker 3:The biggest challenge that I think we face and where we need the help DJ, you asked this earlier what else can people help with is not so much understanding and agreeing with the concept of what we're doing, because everybody says, oh yeah, that's a great idea, but it's to change behavior.
Speaker 3:So why should I look at Salvato auctions and we have 15 cars in our first auction. That's not very many cars, but at the same time it represents a complete change in the dynamic of the industry. So getting people to understand the concept is fantastic, but changing behavior is another matter altogether, because people have their set way of searching for cars, buying cars, working the auctions and so forth. And if you go to Copart and there's 8,000 cars to choose from. Statistically speaking, yes, you're going to statistically have a higher probability of finding what you need at that location, but at the same time, if people will check Salvato first for savings to save this money and to help us grow, it would go a long way toward helping us change the industry and help us become more established to pull more of that inventory away from the big duopoly companies into a system and a process that operates leaner and more effectively for the buyer.
Speaker 3:That's amazing, that's incredible, and I recognize that. I need to add one more thing, amanda. I'm sorry, but buyers all acquire vehicles differently. Some will go online and look and search and do that searching themselves. They know what they need. Others use bidding tools like BidBuddy or BidCall Direct, and I just wanted to say that our auction and our inventory is loaded into those platforms. If those of you who subscribe to those and use that as part of your buying process look for Salvato, look for that Salvato auction and you can load that and save it as a favorite, and then you can put the sticky note on the side of the monitor to say check Salvato first for savings and check what we have first. If you need a 2018 Camry, see if we have one first before you go to Copart, because I guarantee you they have lots of them. That's fine, we know that, but if they check us first, it will help the industry become better over time and we'll save you some money in the process.
Speaker 2:I love that. Yeah, and we'll touch after this break. We'll touch about how you're such an industry advocate and that you're really just trying to kind of change the mindset of the way people are buying cars at auctions, right, so we'll touch base on that here after the break and we'll just take a quick commercial break and be back.
Speaker 4:The URG Scholarship Foundation was founded in 2014 in honor of individuals who give their talent, time and, very often, their own finances to ensure the growth and success of the automotive recycling industry. We understand college is not for everyone, so each year the foundation offers substantial financial scholarships to auto recycling employees and the children of employees that are attending four-year and technical or trade schools, to assist with their education. Don't leave money on the table. If you have a child or if you're interested in attending continuing education, this money is available to you. Go to u-r-gcom and click on the Scholarship Foundation tab. Urg keeping our industry strong through education.
Speaker 1:Welcome back listeners. You know you're listening to the number one podcast in the recycling industry URG On the Go podcast with Amanda Morrison, dj Harrington and Dan is doing a fantastic job. As our guest this week, want to have another industry expert like Dan on the podcast? Let Amanda know. Our hotline number here at the podcast center is 706-409-5603. And we'll be happy to get Amanda and I to work on that industry expert to be on the podcast. All right, amanda, I'll send it back over to you and Dan and this has been a good one.
Speaker 2:Thank you so much, you and Dan, and this has been a good one. Thank you so much, DJ. Yes, it has been a good one, and you know, I think this is speaking to a lot of the recyclers hearts and where they have seen a need for this in the industry for a long time. And so it's great to have you on, Dan, and hearing about how you saw a need and you're really trying to fill that. And I think you know you've been in this industry for so long and you are pretty much, you know, an industry advocate trying to change the ways and the minds of the way the auction world facilitates itself. So I think one of my questions is for the smaller guy, so for the smaller yard that's looking for vehicles, do you think that this might be a better model for them to kind of compete with those consolidators and those people that are looking for vehicles? How do you think that? Do you have any advice for those type of yards that are out there looking for vehicles?
Speaker 3:Yeah, absolutely. Everybody needs an edge right. Salvato Auctions is the next edge. Everyone should know that. Next edge Everyone should know that. And the sooner that the smaller recyclers learn that, the faster they'll be able to take advantage of the savings and the efficiency that comes with our buying process For smaller yards. Knowing your customers, watching expenses those are all important. Developing those enduring relationships are super important and providing great customer service. Small business owners know this but at the same time, being able to be an early adopter with Salvato Auctions and being able to save if they're a smaller operator and they're not buying the high volume rates, saving up to 40% on their auction fees could very quickly help them, all of a sudden, not be a small operator.
Speaker 2:Right, right, yeah, just look at that margin and being able to make a little bit more on that vehicle because they're not spending so much upfront, right.
Speaker 3:Exactly.
Speaker 2:That makes total sense. Makes total sense. So do you think the auction model? So obviously you guys are trying to change and evolve the auction model. Do you think eventually this will kind of be the way of the world? Are you trying to just change everything about how the auction works and maybe see how this is going to work out here in the future? Or do you guys think you'll ever have like holding lots? Or do you think you'll always continue this way going into the future?
Speaker 3:I can't say that we'll change everything. I'm not stupid. I mean Copart and IA are big billion dollar companies.
Speaker 2:They've grown, they're on.
Speaker 3:Wall Street. They do a lot of things well, but we look at ourselves more as the cigarette boat maneuvering between two aircraft carriers. We're able to do things that they just can't do. For example, they cannot lower their fees 20% I don't think their investors would go for that and so we are able to come in and operate a bit differently. We think that there is enough market available to us that we can operate with differently. That will provide a meaningful amount of competition to those other two companies and provide a competitive backdrop to this auto auction space that we live in, and I think the more that we do that whatever that looks like going forward and whatever states and what territories we cover going forward will all be defined over time.
Speaker 3:I just know that there's enough runway and there's enough demand in this space that insurance companies won't want it. Some of them are tired of doing business with those two companies. Buyers want it. They're tired of being nickeled and dimed to death with all the fees. You've got the buyer fee, of course, but then environmental fees and pull out fees and internet fees and I didn't get my coffee today fee. There's a whole list of fees and buyers are tired of seeing that we have one simple fee. It's based on the purchase price, so it's very simple and straightforward, and we think that combining that simple fee structure with our decentralized, low operating cost model and digital titles that move the product through much more quickly eliminates all the need for wedding signatures and FedEx fees to move paper around. All that goes away and we think that we can carve out a nice portion of this business and create a meaningful amount of competition for the duopoly that exists today.
Speaker 2:That's perfect, gosh, if you could have an infomercial, that would be that right there. Right, that's perfect, that's awesome. So are there any other tidbits of information that you want to share with our members? I know you guys also became associate members of ARA. Are you guys going to the conference here coming up in October?
Speaker 3:We will be at the National ARA Conference in Birmingham, so look for us there. We'll be at the Texas ARA Conference the first weekend of September in San Antonio. It's like a four-state conference.
Speaker 3:So, anyone who's part of that can find us. We'll be speaking at that event again to raise awareness and create visibility for the industry about this new competition that's out there to help make a better marketplace for everybody. Just wanted to remind everyone that registration with Salvato Auctions is absolutely free. We do require a $300 fully refundable security deposit to actually bid, but again, that's a fully refundable deposit and registration is no charge. So there's really no reason not to just go ahead and register and get in communication with our company to be ready to bid when that car comes along that you want to buy. We want you to be ready and that's the biggest thing that we can ask for now is that support to place bids on cars. Help us prove our model and expand it to take a bigger chunk of cars away from the other two companies and offer them to all of you at a lower price lower auction fees, I should say.
Speaker 2:That's amazing. That's perfect. And yeah, you'll be at URG too. We got to. We got to plug URG conference in there too in Denver in.
Speaker 3:May Perfect, perfect we got to make sure it's a little longer out.
Speaker 2:Yeah, a little further away it's a little bit further out, but we got to. Just we got to put a little plug in people's ears and it's like make sure you're coming to the URG conference in Denver, so it'll be a good show. We'll be back, kind of back to our roots. You were mentioning that you had been. Did you? Had you been to the Inverness then for a couple of the URG shows, or were you?
Speaker 3:Yes, it's been many years ago when I was at IAA, but I did attend those in Inverness and was happy to participate in that and exhibit and talk about the auction business for a different company then. But again I've left that. But I'm taking all the training of working 10 years in operations, 10 years in marketing and 10 years in global market development at IAA and applying that to this new process and I feel like I've seen the tests a little bit. I may not know all the answers, but I've seen the tests. I know what kind of issues are going to come up. I know what we're up against. It is going up against Goliath. It's not easy to do what we are doing and yet we have all the foundational pieces in place. At this point we just need the buyer support to prove out the model and that's where your listeners and members of this industry can really come to bat and help us out.
Speaker 2:That's perfect and I agree. I think we'll definitely be rallying behind you and we've got you as an associate member and give our members a hundred dollar discount. So definitely get signed up with Salvato Auctions and we'll hopefully get to see it prosper here in the future and hear some really good feedback from our recyclers. So we're excited to see where you guys go.
Speaker 3:Thank you so much, thank you.
Speaker 2:Yep, All right, DJ. I think we're ready to wrap it up. Did you have any last questions for Dan?
Speaker 1:Final question for you now. If you had a wish list and you already told me you wish one or two of them, but give me your email address or how we can register one more time. So when you say it, am I spelling it correctly S-A-L-V. Yes, I want to make sure. So give our listeners, because we have listeners right now. That would help you only because you've been on the podcast.
Speaker 3:Right and we appreciate that. Thank you in advance to everyone.
Speaker 1:Good example Eagle Auto Parts. He's going to say to me DJ, there's no registration fee, All they want is a $300 deposit to hold for my purchase. Why not? It's a no-brainer.
Speaker 3:It's very simple, dj. It's salvatoauctionscom S-A-L-V-A-T-O auctions with an S. Salvatoauctionscom slash U-R-G. When you go to that website, it will immediately put you onto a registration page that will automatically apply the $100 promotional credit to your account. If you want to explore the website and visit other areas and see our inventory and look at cars and explore the frequently asked questions and learn about how the rest of it works. It's simply salvadoauctionscom.
Speaker 1:Perfect, now my dear friend Doug Williams will be one of the first people doing it. I will go definitely on the website, and there are people that I meet during the week that. Dan, it was a pleasure seeing you and meeting you on the podcast, and Amanda, you did right Now we've got to remember it's almost like when you measure a young kid and you put his line where this is how tall he is, he's four foot two, and then eight months later he's five foot and all of a sudden he's bigger. You remember Dan said he only has 15 cars for the first auction. Remember that's what he said.
Speaker 1:Now let's see what he says. 60 days from now, 90 days, and all of a sudden he'll say maybe URG was good, paz, it was a good way to go.
Speaker 3:DJ, I like the way you think. That's exactly how we think and we're operating on that same assumption that this will grow, we'll get to that critical mass like popcorn, and once those first one or two go, the rest will take off and we'll be everywhere. So, people, if you're in New Jersey or California, you're a little too far to haul cars from Texas right now. We're coming and we need your support.
Speaker 1:You're the acorn that's going to grow into a gigantic oak tree. That's exactly what's going to happen. Thanks, tj, appreciate it. I can't wait to see you at ARA and I'll see you at URG in Denver. Yep, we'll see you guys there. This was a good one, girl, just like you said, and I love helping people like Dan. He is a down-to-earth, nice human being. He's just a good guy. Yep, I don't want to help a good guy like him.
Speaker 2:I agree. Thanks, TJ.
Speaker 3:Well, we appreciate it. Guy like him, I agree. Thanks, tj. Well, we appreciate it. We appreciate our association with the URG. It's just so important and again, so many lives are touched by these vehicles and by this process and we really do want to make some change for good.
Speaker 1:Yeah, it's a change for the industry that's going to help the entire industry. That's what's nice about this. It's going to help all of us grow. We're going to help him grow, but we all will grow because of it. A man did good, girl, let's do it together.
Speaker 2:Thank you everybody. Awesome, thank you guys. Time on URD on the go podcast.