instant access to pertinent, accurate and timely information. When the information required to make a good ordering decision is unavailable or inaccurate, we can only hope that the inventory manager will do the best he can with what he has to work with. If the data he has to work with is incomplete or inaccurate or is just a “gut feel”….mistakes are going to be made. Mistakes that can cost the dealership hundreds of thousands of dollars in profit.
We recently installed our DealMaker Inventory Management system in a Chevrolet Dealership located in a Southeast major metro area. Because this dealer carried an inventory of 900 plus New Vehicles he was inundated with 20-30 dealer trade requests daily. In the spirit of cooperation, the inventory manager said “yes” to every dealer trade request. Turns out, he was trading “warm fuzzies” for “cold pricklies.” Giving up fresh desirable merchandise for stale or unneeded merchandise. When the DealMakerPro system analyzed the current inventory it was discovered that of the 900 plus units in stock 263 of them had been received in trade from other dealers. Of the 263 dealer trades analyzed, it was discovered that the vast majority of them were vehicles that were 60+ days old when they brought them into inventory. The average age of the 263 units STILL IN STOCK was 154 days resulting in excess flooring expense of $163,000! And that figure is the EXCESS expense. We didn’t even count the first thirty days in the dealer’s inventory.
The dealers he was trading with had been cherry picking his inventory and giving back the stuff they couldn’t sell. Is this happening to you? - How would you know?
Does your dealership have a defined management driven process for inventory management ? Does that process spell out how you order vehicles? How you make decisions regarding dealer trades? Does the person managing your new vehicle inventory have the information he needs, at his fingertips, when making the decisions that dramatically impact your sales and profits?
The big question is……………..how would you know?…
Welcome to Automotive Digital Marketing
Please use the "Sign Up" link above to complete your registration form and become a member of the industry's leading Automotive Marketing and Internet Sales Professional Community. ADM members have access to resources, connections and private events that provide them with a competitive advantage.