Wednesday, July 22, 2015

Monopoly

Reynolds is trying to create a Monopoly, by kicking out all 3rd parties from the DMS. The famous "Are they certified?" always comes up.

Here is the real problem/question:
If Reynolds is the only one who can declare if a company/person can become certified is that not a conflict of interest? If Reynolds has a competing product or if Reynolds does not have a product at all, why would they want to certify any company/person?

From a business standpoint, RCI is a very clever way of eliminating all the competition, without being sued for a monopoly. Even if Reynolds was to tell a 3rd party "sure we will certify your orginization" they would set the dollar bar so high that it becomes a terrible business model.

I think it is truely amazing to watch Reynolds dealers take the full brunt of all the lost revenues, because Reynolds & Reynolds created a monopoly for their products only. Bob Brockman is walking such a fine line between becoming a monopoly and running a "slick" business.

Thought of the day - A dealership runs ADP/Dealertrak/Auto/Mate, etc and right across the street the other dealership runs Reynolds & Reynolds. The dealership that runs non-Reynolds DMS will have such a competitive advantage it is crazy. The Reynolds dealership has to pay more for every product that is RCI verfied, and the dealer can not find any competive products because those competive products are not RCI. Wow... it sucks to be a Reynolds & Reynolds dealership.

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