Reynolds has not disclosed details about how or whether it will phase out the fees it charges to integrate third-party software vendors, which dealerships long have complained about, other than to say the topic is on the table and a longer-term initiative. Walsh said the company is “heavy in discussions with a lot of third parties in how we can change this program.”
The company last fall said its DMS customer renewals had increased roughly 15 percent during a six-month period in 2021 compared with an earlier six-month window that covered time in both 2020 and 2021. Reynolds leaders this week said the rate of such renewals had inched up toward 18 percent when comparing a nine-month period from March through November 2021 with that same earlier 2020-21 six-month period. Walsh added that Reynolds had seen more new and returning dealership customers on its platform since it began to pursue a more flexible approach to contract negotiations.
Reynolds does not disclose the number of dealership customers on its DMS platform. It has faced pressure in the market, and its longtime position as No. 2 behind rival CDK Global Inc. has become less certain in recent years amid new competition from smaller and startup DMS providers.
“There’s going to be people who are going to choose different DMS providers for lots of different reasons, and we feel like we’ll be in every conversation. Are we going to win every customer? No, we’re not going to win every customer,” Walsh said. “We’re going to fight like hell to win every customer and keep every customer. But I’m not worried about competition. I think competition is healthy for the industry, and, frankly, I think it’s healthy for us. It causes any company to look at themselves.”