MIKOH Corporation (ASX: MIK) and Ship2Save entered a partnership to deliver joint solutions to AVS Key and Inventory Solutions as part of the company’s RFID-enabled security system aimed to prevent car theft from automotive dealerships. The solution combines MIKOH’s Smart&Secure tamper evident RFID platform with custom cabinets from Ship2Save and the company’s Operational Management Systems (OMS).

“Car theft is a rising concern for dealerships, mostly due to stolen keys,” said Anoop Sharma, president of AVS Key and Inventory Solutions and a former Toronto police officer. “During test drives, thieves switch the original keys with counterfeits, returning a few hours later to drive the car off the lot and onto a waiting truck. RFID is an ideal security solution to prevent key counterfeiting and theft.”

AVS Key and Inventory Solutions approached MIKOH and Ship2Save to create a security solution to prevent car theft due to stolen dealership keys. The keys are stored in a custom Ship2Save cabinet equipped with an automatic locking mechanism. Employees must check out keys using coded ID cards, but are only authorized to check out a certain quantity of keys for a limited period of time. If keys are not returned within that time period, or if more keys are removed than allowed, the Ship2Save OMS alerts designated parties within the company that the keys are at risk. The dealership can then move at-risk vehicles to secure locations to prevent theft.

MIKOH delivers tamper evidence security with Smart&Secure. Each key is equipped with an RFID tag using the Smart&Secure platform. The RFID functionality is disabled if the tag is tampered with or removed. This prevents thieves from circumventing the security system.

“Car theft costs dealerships approximately $420,000 each year, not including increased insurance premiums and lost opportunity costs,” said Aminder Singh, vice president products and services for Ship2Save. “The Ship2Save and MIKOH partnership creates an obvious solution to enhance dealership security. The addressable market in North America alone is more than 10 million tags annually.”

In addition, dealership employees often misplace keys or forget to return them, forcing the dealership to order expensive replacements. Dealerships spend an average of $2,000 each year in key replacement fees. The AVS Key and Inventory Solutions system enables dealerships to better manage key inventories.

“AVS Key and Inventory Solutions perfectly illustrates how RFID can be leveraged to create an innovative solution to a specific market need,” said Andrew Strauch, vice president of product marketing and management for MIKOH. “The result prevents car theft, saving money for both dealerships and insurance companies while also saving time and resources for local law enforcement organizations.”

The AVS Key and Inventory Solutions system is currently deployed in a Toronto-based car dealership with plans to expand to eight additional dealerships across the greater Toronto metropolitan area. Future plans call for product deployments across the whole of North America.

About AVS Key and Inventory Solutions Inc.

AVS Key and Inventory Solutions Inc. headed by a former Toronto police officer with more than 15 years policing experience. The company is currently assisting the automotive industry in theft prevention by mobilizing a unique key monitoring system.

About Ship2Save

Ship2Save is one of the industry leaders in cost effective RFID Solutions and is a founding member of the Canadian Microsoft RFID Council, a member of the Microsoft Global RFID Council, an EPC Global Canada Strategic Council Member, a CompTIA RFID+™ Cornerstone Committee Member, and a member of Texas Instruments Tag-It Team. Ship2Save’s unique product lines, flexible and proficient software, business development models, and distinctive deployment services, offer customers cost effective and high quality solutions for their RFID needs. For more information, visit www.ship2save.com.

Cool Springs luxury car wash, car accessories and garage retailer Miles The Auto Spa said Friday it is selling used high-end automobiles on its lot, a move that industry experts think will help boost the company’s overall business.

Miles Johnson, the company’s founder and president, said he plans to sell 15 to 20 used luxury automobiles and sport utility vehicles on his 1.5-acre lot at Bakers Bridge Road.
Advertisement

Johnson said he believes consumers will sell their cars at his business because of the large amount of customers who wash their cars and buy products there as well as a potential for a higher profit for their vehicle.

“Unlike any other car dealer in the country, we have this inbound, constant flow of people who like cars,” Johnson said.

Johnson partnered with wholesale mortgage executive Jeff Yates to form Miles AutoMotive, the sales division that started selling cars in March.

Johnson said the company invested about $50,000 in the division in Web site development, merchandising, advertising and other items. He also has obtained a line of credit to buy used cars, Johnson said, but declined to discuss the details.

Johnson said 30 percent of the cars on the lot would be consigned. Customers pay an upfront $300 or $500 fee to detail their cars and market them at the lot and online.
Profits are split

Before the customer pays the fee, Miles AutoMotive does a market analysis on the car’s minimum sales price. If the car is sold above the minimum price, that profit margin is split in half between the company and the customer.

Miles The Auto Spa opened in February 2007 and Johnson said he invested less than $4 million in that business from his personal funds, Pinnacle Financial Partners and a Small Business Administration loan. Johnson bought the lot about two years ago for $1 million, and his business is near other car dealerships in the area.

Bob Schrum, vice president of the Southeastern Carwash Association, which represents operators in the Southeast, said he thought Johnson’s idea was “ideal” because Johnson will be able to get an upfront fee for detailing from new customers who want to sell their cars.

“It sounds like a perfect fit,” Schrum said, adding that it could boost business at a time when consumers are bringing 10 percent to 25 percent fewer vehicles to car washes. But Johnson said sales at The Auto Spa remain strong, with gross sales revenue in the first 10 months of business exceeding $1 million.

Gross sales for its second year will be between $1.5 million and $2 million, he projects.

Wendy Lee can be reached at 259-8092 or wlee@tennessean.com

AutoUSA, the industry’s leading provider of the highest quality Internet-generated consumer leads to auto dealers nationwide, today reported a 273 percent increase in Toyota Prius consumer leads from May 2008 year-to-date. AutoUSA’s Prius leads have been steadily growing over the past three years, more than doubling from May 2006 to 2007 in addition to the significant spike over the past six months.

“With gas prices continuing to go up, more in-market auto buyers are looking for hybrids and green vehicles,” said Phil DuPree, president of AutoUSA. “What we’re seeing with the Prius is indicative of the changing buying habits of consumers and new market demands.”

The Prius is the first mass-produced hybrid vehicle. It was initially sold in Japan in 1997, and marketed internationally starting in 2001. In May 2008, despite consumer interest, Toyota reported a 40 percent drop in Prius sales. The company attributed the decline to a shortage of batteries that is likely to resolve in January 2009.

“The situation with Prius is frustrating. It’s both a good and bad problem,” said Mike Martini, sales manager at Burnsville Toyota in Minnesota. “Our closing ratio is being impacted, but we’re increasing the number of pre-orders.”

Burnsville Toyota is one of the largest Prius dealers in the state. According to Martini, the dealership is averaging three to five Prius pre-orders a day on both Internet and walk-in customers, with a six to eight month wait on delivery.

“We’re taking pre-orders, but we’re also trying to educate potential Prius buyers on the different options available, such as the Corolla and Camry. Sometimes they don’t really need to buy a hybrid because another energy-efficient vehicle will meet their needs,” said Martini.

One key piece of information helping environmental and gas-conscious consumers in their vehicle purchasing decision is Total Cost of Ownership (TCO). “Successful dealers are finding that once buyers understand TCO, many more vehicles become an option,” said DuPree.

AutoUSA provides leads to more than 4,000 dealers nationwide from a partnership network that includes leading automotive web sites including Edmunds.com, Kelley Blue Book, MSN Auto, Yahoo! Autos, AOL and AutoVantage.

About AutoUSA ( www.AutoUSA.com ):
AutoUSA, Inc., is headquartered in Fort Lauderdale, Florida, and a subsidiary of AutoNation, Inc. (NYSE: AN), the largest retail automotive company in the United States. AutoUSA is an independent third-party provider of leads to more than 4,000 dealerships. The company has built its success on a combination of advanced web-based technology and a network that includes the country’s most well respected online automotive resources, including Edmunds.com, Kelley Blue Book, MSN Autos, Yahoo! Autos, America Online, NADA Analytical Services Group, AutoVantage.com, AutoNation.com and AutoUSA.com. The vast majority of Ward’s Top 100 eDealers use AutoUSA.

Spiraling gasoline prices not only are hammering vehicle sales, but also are threatening automobile dealers’ viability.

While everyone knows that gasoline prices are affecting the value of larger used cars and light trucks on dealership lots, no one knows where this is headed on a daily basis. With a new barrel price for oil each day, dealers have been unable to adjust vehicle values fast enough to match the market.

Chicago-based vAuto has introduced new technology that uses a live market view to track and report vehicle valuations, supply and demand in real time. For example, on July 1, when gasoline prices hit a new high of $140.97 per barrel, at 8:00 a.m. in Chicago, the market price and days supply of a 2006-model Cadillac SRX sport utility equipped with a 3.6-liter engine were $22,375 and 123 days, respectively. By noon, the price had dropped to $21,735 and the days supply had jumped to 154. By 9:00 p.m. the market value had fallen even further to $21,075 and the days supply had climbed to 179.

“With the ability to track this data in real time, vAuto clients are able to avoid getting caught with vehicles whose values no longer reflect the current market,” noted vAuto Founder and Chairman, Dale Pollak.

Joe Gilsdorf, a vAuto customer and the owner of Henry Chevrolet in Henry, Ill., saw retail prices fall $1,300 in his market in one day using vAuto’s technology. With this knowledge, he took vehicles back to auction that he had purchased just the day before.

“It was like having insider information,” Gilsdorf said. “The dealers that bought the vehicles that I was reselling were working with wholesale values from previous days that had not yet adjusted to what I was seeing in the retail market. They didn’t realize that in the past 24 hours the average retail market price had dropped $1,300. I truly felt like I had an unfair advantage, but it is all about survival.”

Keith Jezek, vAuto’s president and CEO noted that the benefits of his company’s technology are truly amazing.

“We can sit in front of a screen and watch the valuation, supply and demand of used vehicles fluctuate minute-by-minute,” Jezek explained. “This technology is a revolutionary breakthrough for dealers trying to keep pace with a retail market that is now as volatile as the New York Stock Exchange.“

With hundreds of inquiries per week, vAuto has become the industry’s fastest-growing supplier of market information for used-car dealers. In the last month, vAuto eclipsed the 1,100 dealership rooftop mark, making it the clear industry leader.

Jezek said, “We’re talking about technology the likes of which dealers have never before had available. It tells a dealer what to stock, how much to pay and how to price long before the competition is able to recognize and react to an emerging trend.”

The nation’s six highest-volume franchised dealerships by brand now use vAuto’s stocking, appraisal and pricing systems, including Chevrolet, Ford, Honda, Nissan, Lincoln Mercury and Toyota. Virtually every imported and domestic vehicle brand is represented on the company’s customer list.

Headquartered in the Chicago suburb of Oak Brook, vAuto maintains a research-and-development center in Austin, Texas. Triple-digit increases in its customer base have the company searching for additional technical- and sales-support professionals in both Chicago and Austin.

Further information about the company is available on the Internet at www.vauto.com.