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Bullboard - Stock Discussion Forum CI First Asset U.S. Tactical Sector Allocation Index ETF T.FUT

TSX:FUT - Post Discussion

Post by BayWall on Sep 11, 2012 9:09am

I think...

Futura has to build up its auto service businesses rather than auto sales at this stage. If they want the B2B idea to interact with car dealerships, then sign-up businesses like tire distributors. parts ( AC Delco, etc) distributors, NAPA auto parts, etc.

 

Also more focus needed on the furniture category where manufacturers can help out with Aeroplan points for the retailers who can then pass it on to consumers. It is a large retail category where Futura has Aeroplan rights to and involves frequent purchases by consumers.

 

The auto service category may be the way to go in the US. (high frequency retailers). I think that`s what they are planning moreso than car sales at this stage.

 

210 Ok Tire retailers in Canada now 212. Auto service will be the bread and buttter for Futura. Car sales ok, nice, but more as a bonus and not a mainstream source of revenue. That can change if Aeroplan point allocation improves, plus the B2B idea takes hold, making it worthwhile for dealerships to offer more meaningful point rewards.

 

I saw one dealer offering 2500 Aeroplan points for a new car purchase. That is very little incentive to buy a car, while Aeroplan themselves were offering 60,000 points for Infiniti car sales last month. And people buy car for other reasons, cash discount, car make and not necessarily based on Aeroplan rewards. Therefore, the service category will win for Futura, where Aeroplan can make a difference.

Comment by BayWall on Sep 11, 2012 10:01am
It's tough to focus on a specific business category to the exclusion of others. Does Futura sign-up car dealerships first and then B2B suppliers. Or get the suppliers on board now. Car dealerships could earn lots of Aeroplan points which then could then be used to fatten the reward offers. I've never seen a 15,000 mile reward yet by any dealer. (10K I saw a few times, but it may have ...more  
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