Commentary Apr 1st, 2025

The 'Vendor' Trap: Why Automotive Dealers Deserve Strategic Partners

The Vendor Trap Why Automotive Dealers Need Strategic Partners

I hear it all the time in conversations surrounding automotive dealers and the companies they engage to help run their businesses. On podcasts, in news stories, in face-to-face conversations, and from conference stages.

“Vendor.” It’s a word I loathe.

Why?

Because, to me, it suggests a transactional relationship between solution providers and automotive dealer clients—one that lacks strategic depth and fails to recognize the value of genuine partnership.

Today, we find ourselves in a business environment filled with disruption, innovation, and uncertainty. More than ever, we must change the narrative and elevate the dealer-service provider relationship into one built on empathy, trust, and long-term strategic partnership—relationships that create lasting value rather than short-term transactions.

What informs my point of view?

Most recently, my role as a client partner responsible for building relationships and driving revenue growth across a portfolio of automotive clients. More influentially, the nearly two decades at Deloitte working alongside some of the smartest, client-centric automotive partners within the global firm. That experience provided me with a valuable seat at the table, allowing me to witness firsthand how great client relationships are nurtured. We focused on building enduring, trust-based relationships that required empathy, courage, and a clear point of view.

At Deloitte, I learned the critical importance of empathy—of taking the time to genuinely walk in the client’s shoes. I saw the power of conviction that results from bringing an informed point of view, and the courage and candor required to speak the uncomfortable truths others might avoid. Most importantly, I experienced how truly strategic and trusted business relationships flourish when advisors set aside self-interest to put clients first.

My Deloitte colleagues and I cringed whenever we heard phrases like, “you’re the consultants.” We worked tirelessly—day in and day out—to transcend that label. We wanted to be trusted strategic business advisors—partners who helped boards of directors, C-suite executives, and senior leaders across the enterprises navigate risk, explore new business models, and drive efficiency. Our North Star was always creating value—value for decision-makers who invested in Deloitte’s professional services, value for our clients’ customers, and ultimately, value for shareholders.

Today, the automotive and broader mobility ecosystem is becoming increasingly complex, especially for dealers investing millions of dollars and countless people and time resources into marketing technologies—such as Customer Data Platforms (CDPs), Customer Relationship Management (CRM) systems, dealer websites, AI-driven solutions, dealer management systems, and other cloud technologies. Amid this complexity, dealers face provider fatigue. They are inundated by numerous solution providers and overwhelmed with critical questions:

  • How is this solution different from what I already have?
  • What measurable business outcomes can I expect from this investment?
  • How can I trust the solution I invest in today will remain the best choice tomorrow?
  • What’s the cost of switching, and how will it impact my other solutions?

Empathy again becomes essential here. If we take time to genuinely understand dealers’ perspectives, it’s clear why discerning enduring value and measurable ROI can be incredibly challenging in a marketplace saturated with solutions.

I firmly believe the winners in this evolving landscape will be those who successfully shift from being perceived merely as "vendors" to becoming trusted strategic business advisors. It’s not simply a semantic adjustment—it’s a foundational shift in relationship dynamics.

And ultimately, I believe, the value created across client relationships, brand reputation and revenue growth by embracing this subtle yet foundational shift can surpass any near-term revenue target. I’ve seen it happen, many times.

Here’s how I believe providers can facilitate this transformation, guided by six critical recommendations:

1. Emphasize Genuine Partnership

The strongest relationships are rooted in trust, open communication, and empathy. Partners take the time to deeply understand dealers' unique challenges, crafting solutions that genuinely resonate. This requires sincere curiosity, informed points of view, and recommendations tailored explicitly to the dealer’s needs.

2. Deliver Tailored Solutions

The days of one-size-fits-all are over. Dealers deserve advisors who thoroughly understand their unique operational contexts, customer demographics, and market strategies. When advisors demonstrate commitment by personalizing recommendations—like customizing a CRM solution to better support a dealership’s customer journey—they signal their genuine investment in the dealer’s success.

3. Build Long-Term Relationships

I believe revenue is the outcome, not the objective. Creating those moments where the decision-maker across the table says, “You’ve shown me we’re in this together and I trust you. Let’s move forward.”

Moving beyond transactional interactions or near-term revenue goals means committing to dealers’ long-term success. This involves continuously demonstrating value, providing consistent support, and proactively addressing emerging challenges. Regular check-ins and ongoing dialogue build trust and elevate advisors into indispensable partners.

4. Leverage Data-Driven Insights

In a data-driven world, strategic advisors set themselves apart by offering actionable insights based on thoughtful data analytics. Advisors who interpret data trends, identify operational inefficiencies, and reveal market opportunities become invaluable resources that dealers rely upon.

5. Commit to Continuous Education

Automotive technology and market dynamics evolve rapidly. Advisors who dedicate themselves to continual learning, who remain informed about industry shifts, and who proactively share knowledge position themselves as thought leaders. Through webinars, thought leadership content, and workshops, they empower dealers to successfully navigate the future.

6. Courageously Say What Others Won’t

At Deloitte, I remember a particularly challenging internal conversation. A colleague boldly recommended advising a client to select one of Deloitte’s competitors because, despite Deloitte’s ability to do the work, the firm wasn’t the best fit to solve the client’s specific issue. It was a courageous stance—and one that exemplified placing long-term trust above short-term revenue. Sure, revenue was lost temporarily, but the trust earned opened doors to future opportunities and growth far beyond the initial engagement.

Conclusion

Words matter. By discarding the transactional term "vendor" and embracing the role of strategic business advisors, technology and data providers have a powerful opportunity: to forge deeper, empathy-driven relationships built on courage, trust, candor, and the conviction to consistently place clients’ long-term success first.

I believe those who successfully adopt this mindset will not only differentiate themselves in a crowded market—they also have opportunity to transform their relationships, achieve sustainable growth, and become truly indispensable to the automotive industry’s future. In some cases, this approach can also have profound effects on company culture and how skill teams across an organization work collaboratively to become recognized strategic partners serving their clients.

Steve Schmith is a recognized expert and trusted strategist in the automotive and mobility industries, with more than 25 years of experience helping brands navigate change, drive growth, and stay ahead of the curve. He has built a career advising OEMs, dealers, and industry partners on how to connect business goals with emerging trends—translating insight into actionable strategy.

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