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22-10-2020, 10:55 AM
#6391
Originally Posted by toddhunter
Hi all I see there are a few questions/comments on our subscription service...we are very much in soft launch mode while we iron out any kinks which is a pretty typical approach. Marketing is very PR and digital focused, and ramps up over the next few months as we get users and case studies that we can share with the public.
Advertising dollars are very targeted so quite likely you may not see the ads. As a number have commented on here supply is very short in used cars because of the supply constraints in new car supply chain...so we will build subscribers and stock levels as demand calls for it. We don't really know what the demand will be but it makes sense commercially to increase marketing spend as we get a feel for levels of demand. The great thing about digital is that there are very clear and transparent metrics on cost of customer acquisition, and I think there would be plenty of criticism the other way if we spent a ton of money on tv advertising with little to show for it.
Also subscription isn't really about sharing...when you are subscribed to a car you have 100% exclusive access to it, as opposed to a service like City Hop which is car rental by the hour ... much more of a sharing model. I suppose it could be called long term sharing as the minimum time to subscribe is 30 days. And a reminder each car "deep cleaned" after it is returned of course!
if anyone has further questions happy to answer directly @ todd.hunter@turners.co.nz
Many thanks Todd for coming on here and clarifying things for us. To the best of my knowledge you're the only CEO of a listed company that engages with investors on here so you deserve significant kudos for that. I have a few questions if you'd be so kind to give us some further clarification on at your earliest convenience that would be much appreciated.
1. Firstly on the new requirement that only cars fitted with electronic suability control, (ESC) can now be imported.
Will this be really supportive of the value of older cars in your stock at present that don't have ESC as the newer imports will cost more and there will be a lack of fresh supply of older cars ?
2. There has been much talk of significant increases in the value of used cars overseas due to a range of factors including supply chain interruption on new cars and a big demand increase for personal transportation, (as opposed to public transportation due to risk concerns over Covid). Extract from Barramundi report today is as follows:-
" Carsales (+18% in the quarter) has also benefitted from a surge in
demand for vehicles advertised on its domestic and international websites.
Heightened demand for domestic car travel and an aversion to public
transport has resulted in an increase in first-time car buyers and boosted
vehicle demand".
Given our status in N.Z with Covid being significantly better than most other countries, are you seeing the same thing here with higher demand from people for cars too worried to use public transport and if so do you think that will be an enduring tailwind for Turners for quite some time ?
3. Do you foresee Labour getting back into power as beneficial to Turners ? Higher minimum wage, potential for higher payments to beneficiaries meaning more people can afford cars and those that have them are more easily able to afford the payments ? What about the cost to Turners of these higher wages with the minimum wage going up...would that partially offset that ?
Disc: I bought a few more Turners shares yesterday.
Last edited by Beagle; 22-10-2020 at 11:24 AM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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22-10-2020, 11:24 AM
#6392
Member
Popping my cherry as Peat mentioned dividend in, looking good.
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22-10-2020, 12:47 PM
#6393
Originally Posted by sb9
Another mouth watering quarterly divvy just landed in bank a/c, thanks TRA and team
Yep, a jaw dropping $186 in my case lol.
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22-10-2020, 01:20 PM
#6394
Originally Posted by IAK
Yep, a jaw dropping $186 in my case lol.
All good, mine is close to half way to a grand...
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23-10-2020, 09:31 AM
#6395
Originally Posted by Beagle
Many thanks Todd for coming on here and clarifying things for us. To the best of my knowledge you're the only CEO of a listed company that engages with investors on here so you deserve significant kudos for that. I have a few questions if you'd be so kind to give us some further clarification on at your earliest convenience that would be much appreciated.
1. Firstly on the new requirement that only cars fitted with electronic suability control, (ESC) can now be imported.
Will this be really supportive of the value of older cars in your stock at present that don't have ESC as the newer imports will cost more and there will be a lack of fresh supply of older cars ?
2. There has been much talk of significant increases in the value of used cars overseas due to a range of factors including supply chain interruption on new cars and a big demand increase for personal transportation, (as opposed to public transportation due to risk concerns over Covid). Extract from Barramundi report today is as follows:-
Given our status in N.Z with Covid being significantly better than most other countries, are you seeing the same thing here with higher demand from people for cars too worried to use public transport and if so do you think that will be an enduring tailwind for Turners for quite some time ?
3. Do you foresee Labour getting back into power as beneficial to Turners ? Higher minimum wage, potential for higher payments to beneficiaries meaning more people can afford cars and those that have them are more easily able to afford the payments ? What about the cost to Turners of these higher wages with the minimum wage going up...would that partially offset that ?
Disc: I bought a few more Turners shares yesterday.
__________________________________________________ __________________________________________________ __________________________________________________ _______________________________________
Hi Beagle, thanks for the kudos...I appreciate that. I hope the comments I make from time to time are helpful and provide insight. Well done on your share purchase too. Answers to your questions below...
1. Short answer is yes...we didn't stockpile non ESC cars, but vehicle prices have definitely gone up. There have been two large impacts on supply this year....
a) the ESC change which has reduced the pool of available cars that could be imported into NZ.
b) Covid and the impact on new car supply chain which had an impact not just locally but also in Japan and the number of cars available in the auctions over there.
2. Prices for used cars have risen steadily from late May. At this stage, the effect of supply disruption i.e. the new car supply chain interruptions + ESC change mentioned above are more material effects than any shift in demand caused by substitution of public transport with private vehicles.
3. Yes I do. I think this business always goes slightly better in a centre-left government due to the level of support/stimulus that comes with Labour. Beneficiaries are not really our target market but middle NZ families do benefit as well. Most of our customers who have mortgages will have or about to get substantial decreases in their mortgage payments, no overseas travel etc, and the unemployment rate has not peaked like the economists thought it would. We feel confident we will continue to prosper. In regard to the minimum wage it will be an immaterial impact as we have a small number of people on the team at this sort of level.
Thanks
Todd
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23-10-2020, 04:40 PM
#6396
Many thanks Todd, much appreciated.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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28-10-2020, 04:24 PM
#6397
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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29-10-2020, 08:59 AM
#6398
Great to see other key management members involve in the presentation y'day to NZSA Investor day.
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16-11-2020, 12:23 PM
#6399
Half year results on 25th nov.
Had a good experience on friday ,bought a hybrid at Turners, great experience and service. He said they are very busy and it looked it while i was there.
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23-11-2020, 01:28 PM
#6400
More encouraging news on Used Car Pricing from Aust. Looking Good for 25th Nov...
Consumer splurge on used cars gives Carsales a COVID boost
https://www.smh.com.au/business/comp...22-p56gt2.html
All science is either Physics or stamp collecting - Ernest Rutherford
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