Every now and then, it makes sense to go back to the basics. Examine where things started and explore how we got to where we are today. In the world of automotive retail, we must stick to our roots. Tried and true methods will be around even after digital retailing takes over. For inventory management, this means there needs to be a simplified approach to an advanced topic.
But where does one start when it comes to getting back to basics?
Start at the beginning. Identify opportunities for growth through merchandising. There are many chances for you to rightsize your lot and to provide your customers with the inventory they demand. To accomplish this, you need to acquire stock with confidence. Using current market velocity and your sales history, you need to recognize the highest potential vehicles to add to your inventory. Internal transfers, make-a-deal opportunities, and quick links to auctions help reliably stock directly from your dashboard.
The next step is to appraise better. Your appraisals need to be built on complete market datasets. This gives you the ability to accurately reflect a fair-market value for each vehicle. Moreover, the appraisal will be based on market year for comparable year, make, model, trim, mileage, condition, and more. Appraising properly is critical for your success and is a vital part of a next-generation inventory management system for your dealership.
After that, be sure to validate your numbers. When evaluating your current set-up for inventory management, be sure that you are getting real-time relevant vehicle valuation with proper pricing proof points. Inventory management isn’t a guessing game. Third-party resources like KBB, NADA, and Edmunds help you validate your pricing and prevent unnecessary discounting. The race to the bottom stops with an inventory management system designed with your dealership in mind.
The end result is to drive gross and volume. Matching market demand means you don’t have to choose one over the other. With a quality solution for inventory management, you can stock the right vehicles and price them to move profitably. It’s that simple. And, as a result, your market data accuracy ensures strong initial planning. Simple workflows and clear aging alerts secure timely adjustments. You can have your cake AND eat it too.
Data is the primary player here. Your inventory management system should be analyzing millions of VINs daily. And to improve the customer experience, you should be providing OEM window stickers to capture all the pertinent and original information of the vehicle. Now is the time to get serious about inventory management. A mature, next-generation system makes the difference between a good quarter and a great quarter. Let MAX Digital show you how MAX Inventory is the right choice for your dealership.