As information technology makes information easier to access, more major purchase decisions are being moved online. Automotive sales are not unaffected by this trend.
Long gone are the days where auto consumers shopped around at multiple dealerships. Research shows that 71 percent of people buy the vehicle they are already interested in when they visit a dealership. 46 percent of customers only visited one dealership after having made the decision online. These modern buyers want transparency and the ability to do their own research.
Driving sales is dependent on giving customers the information they want, where they’re looking for that information. MAX Ad makes this simple by integrating with your used car inventory management system. From there, the MAX Content Generation Engine builds customer-relevant ads.
The ads generated are easy to read, and broken up to answer the questions that the average consumer wants to know using MAX Ad’s optimal format description. These ads include images, detailed vehicle information, and a pricing justification that lets potential buyers know they’re getting a fair price.
MAX Ad gets these ads to in-market shoppers by sending them to over 200 third-party websites. 78 percent of people use pages and apps like Cars.com, Autotrader, or Kelley Blue Book in their shopping process. By putting relevant ads on these sites, MAX Ad brings your inventory information to where consumers are looking and gives it the edge it needs to stand out.
Merchandise your inventory with ease, thanks to MAX Ad, and other tools available at MAX Digital. Schedule a demo to see what our software can do for you. You can also contact us at (888) 841-0884 to learn more.
The digital age is creating a new type of car-buyer: a consumer that is well-versed, widely knowledgeable, and armed with an entire internet of information about the car they are interested in — all before they even enter your dealership doors.
You still need to sell vehicles, and you need your sales team to be able to sell them without offering extreme discounts and price drops just to make a sale. How do you do that?
MAX Digital Showroom levels the playing field between sales representatives and customers by making dealer employees product experts from their first day on the job. Keep reading to learn how MAXDigital puts the power back in your sales method.
MAX Digital Showroom makes selling vehicles easier by creating understanding and allowing for transparency between dealer and consumer. Here are some ways MAX Digital Showroom empowers your sales team, while respecting your customers:
Still not sure how MAX Digital Showroom might work for you? Set up a product demonstration with MAXDigital today to see how our tools work with your inventory. We’re looking forward to helping you confidently price and sell your new and used vehicles.
Car buyers are becoming more educated in the way they shop. They are more informed about prices, terms, and car values than ever before. So it’s imperative that dealerships keep pace with this knowledge race and learn as much about their customers as their customers know about them.
One dealership in particular that displayed this desire to learn was Rainbow Luxury Imports in Covington, LA. Rainbow acquires higher-end models such as BMW, Infiniti, Lexus, and Audi at auctions and reconditions them before displaying them on the lot. The only thing missing with this business model?
General manager Mark Rose didn’t know how many cars to buy, how much to buy them for, how long to keep them on the lot, or how to price them. All of these metrics are critical influencers of a dealership’s bottom line. And Rose had no proven method of figuring them out.
Rose sought out help from MAXDigital and implemented the FirstLook Inventory Management Platform and the MAXDigital Marketing and Sales Platform to help acquire, price, merchandise and sell vehicles more efficiently and cost effectively. Rose is now able to utilize valuable data to validate prices, create focused advertising and generate vehicle information listings for every step of a buyer’s journey.
“What MAXDigital did for me was to put all the marbles on the top of the table so that I can deal with one champion partner to help me have a holistic look at my business,” Rose said.
Luxury Imports is just one of many dealerships that have benefited from MAXDigital’s suite of solutions. We help dealers everywhere in the four critical areas that make up a successful and profitable dealership:
Schedule a free demonstration of MAXDigital’s solutions today and become our next success story.
The automotive retail business has changed a lot in recent years. People don’t shop for cars the same way they did a few years ago, and dealerships don’t sell cars the same way (or at least they shouldn’t). Dealers have also changed how they make business decisions, too.
You and your sales managers probably spend a lot of time considering your inventory turnover. You’re looking at annual inventory turn, quarterly, monthly. Maybe even on a smaller timescale than that, and this goes for your new and used vehicle inventory.
And when you look at inventory turnover, you’re comparing it to your bottom line and you’re probably wondering “Does this add up?”
Right now, ask yourself instead: “How should I calculate my inventory turnover ratio?”
Given that it’s expressed as a ratio, finding your inventory turnover is a matter of doing some basic math. You’re dividing one number into another, the Cost of Goods Sold by your Average Inventory.
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
Now you would need to do some additional math to get the values for those variables. To find your Cost of Goods Sold, just add up the total value of all the inventory you moved in the given period.
To find your average inventory, total up the number of cars in your inventory at the beginning of the period and the number of cars in your inventory at the end of the period and divide those by 2.
Cost of Goods Sold = (Beginning Inventory + Ending Inventory) / 2
This is how you can change the timescale for the turnover you’re looking at, be it weekly, monthly, quarterly, and so on.
Some dealers also like to consider their Days Sales of Inventory, or the number of days it takes to sell a given inventory. The formula for that is as follows:
Days Sales of Inventory = (Average Inventory / Cost of Goods Sold) x 365
Days Sales of Inventory = 365 / Inventory Turnover Ratio
If you’re interested in these numbers, as any car dealer should be, it means you’re concerned about how efficient you and your sales managers are at managing your inventory. Are you stocking as many cars as you should be? Are you overstocking?
These are the right questions to be asking, and if you have the right tools, you should come to the right answer even faster.
We use calculators because they’re easy. You can do math in your head no problem, but when you can punch some numbers into a calculator and get the answer instantly, that frees up your brain for more analytical thinking. It’s just a way of reducing friction.
MAXDigital’s Inventory Management Platform does the same thing for your inventory. Sure, you could commit those equations to memory, but you’re better off using that mental real estate for more important details.
Our software does all the calculations for you. We’ll give you inventory turnover ratio in an instant, over whatever period you need. And then we go a step further.
The MAXDigital Inventory Management Platform also offers you sophisticated stocking and appraisal tools so you know what cars to buy and at what price. You can streamline your internal processes, improve your inventory turnover, and maximize your gross profits.
If that’s not enough, we also offer you tracking tools that will help you assess your performance on the group level and by individual store. Our detailed online analytics also keep you on top of that all important digital performance – the key to surviving in today’s auto retail market.
Does this sound like something you want to learn more about? We’re happy to fill you in on all the details. Get in touch with MAXDigital today to schedule a product demonstration about any of our solutions. We’re looking forward to hearing from you.
In the meantime, good luck crunching those numbers.
We’re at a pivotal point in the automotive retail industry. With customers changing their buying habits and research methods, it’s time for self-evaluation. More and more dealerships are looking at their internal processes to find areas for growth and restructuring.
If you want to succeed, you need to identify the weaknesses in your inventory management process and work out a plan to correct them. The best way is to move through your inventory management procedures step by step, starting with stocking, moving to appraisal, and finishing with pricing.
Once you’ve uncovered inefficiencies in your processes, MAXDigital will be here to help you fix them.
A picture is worth a thousand words, but how much is it worth to your car dealership? If you’re not staying on top of vehicle photos for your inventory, you might be costing yourself leads or worse.
Fortunately, we know an easy way to make sure every car on your lot has a current picture online. First you might be wondering why it’s so important to upload vehicle images to your website. We’ll talk about why you want to get in this habit, when and where you should take pictures of your cars, and how to upload them with zero hassle.