RE: The game is changing If such is true about auto service, the more reason all new car dealers need Aeroplan. Have to still address the cheaper costs independent jobbers offer "down the block". Maybe Aeroplan has to ramp up the Aeroplan miles handed out.
At first glance, it seems loyalty programs like Futura's Dealer Dollars made sense with a % cash earned theme. But this idea is commmon place nowadays with dealers. The alternative is Aeroplan type programs. But does Aeroplan help new car dealers they way Futura had envisoned?
Aeroplan Automotive Satatistics fact sheet paint a profitble picture. Dealer Benefit Summary list seems impressive. Aeroplan is touted as making car dealerships more profitable in the Co-Auto brochure.
So what happened? Why in court documents (CCAA) Futura says that the revenues per dealership were not as expected? Is it simply a marketing problem a seasonal thing, or is something missing? Car Dealers are not getting the word out in print media, etc. Most don't even mention Aeroplan on their websites.
There are good websites promtoing Aeroplan. Bourassa dealership in Quebec-excellent. Ron Hodgson-Edmonton--- super. See what's successful, where the action is.
If Futura folds Aeroplan gets all the accounts at full revenue. With no compensation to Futura, I assume. But then there will be a void to fill. Who will look after the smaller merchants in the auto business?
Maybe nobody will. The numbers involved for Aeroplan are small. A few million dollars is peanuts for them, but not for Futura. There's a chance things could still be worked out with Aeroplan, but then there is the chance that all will fall through.
No news this week. Meanwhile my contractor continues to collect both Air Miles at Rona and Aeroplan at Home Hardware. Enough to keep going to Arizona again to check on his real estate holdings and add more. Here's one person who is a multi-millionaire bigtime starting 25 years ago with nothing but his labour.
Meanwhile, many juniors listed on the Venture Exchange still have nothing to show after 10-15 years and are spending millions. Granted most have no debt, but their stock is diluted. (exploration companies)The worst are those who are bothover-diluted and in deep debt like Futura.
Don't know why that is. Exploration companies get away with equity financings, whereas non- exploration firms like Futura, Advantex, etc need that debt load also. Seems unfair, but the nature of the business does play a role. It's tougher to promote a loyalty marketing company than it is an exploration company. That's where the debt load comes in from a tight knit group of investors, because the public money can't be easily tapped. Almost defeats the purpose of being listed on a stock exhange.