If being profitable is one of your goals, then you need to be proactive in your approach to sourcing, managing, and selling your inventory. There is no way around it. But how can you be strategically profitable while acquiring more vehicles? The used car market doesn’t need to be some complex math equation. Instead of throwing darts at a board, it’s time to be deliberate with your plans to maximize the success of your lot.
First things first, where are the profits?
With the volatility of the used car market slowly softening, now is the time to get your house in order. Prices are reportedly dropping slightly compared to last year’s numbers and first-quarter 2023 results. But this doesn’t mean that there is less money on the table for you. Rather, your financial opportunities are simply more valuable than before. And it’s up to you to grab the bull by the horns.
Every customer interaction needs to be treated with value and respect. To achieve the greatest profits possible, create an experience based on trust and transparency. Build worth into transactions to illustrate where consumers are going to get the biggest bang for their buck. Value comes in a lot of forms. For your dealership, having a streamlined sales process, elevated offerings, or even fringe benefits for buyers will differentiate your store from the others. After all, selling used cars in 2023 is about breaking free from the pack and experiencing peak performance…not wandering in the middle of the road.
Profits aren’t hiding from you.
Instead, they are built into every transaction with tangible points where you can achieve operational goals. The used car market has evolved, so offering transparency to these elements is critical to your reputation in a digital marketplace. When you acquire more vehicles (and hopefully you are ramping up your approach to consumer sourcing), you open new opportunities to incrementally grow your business.
With every vehicle you appraise, develop a strategy to secure that inventory. Expand your reach through creative marketing efforts and break into new sources of cars. Consumers are ready to trade in or sell you their automobiles. But you need to be as agile as possible with how you approach and communicate with them. The goal is to always offer a seamless experience. A fair offer with honesty will make a difference for your bottom line when you move from acquisition to sale.
Then, after you obtain your new vehicles, it is time to set yourself up for a profit breakthrough. Hitting your financial goals can be broadened by simply understanding your lot better. Data is a difference maker in inventory management. When it comes to how you are governing your dealership and cars, you need to rely on solutions that are created with tomorrow’s answers in mind. And, because the customer experience matters, everything from how you speak to consumers through digital or traditional means must be emphasized to clearly illustrate the benefits and packages of each piece.
Proper inventory management allows you to maximize the opportunities of your lot. The data provided will give insights with pertinent information into the how, what, where, and when that influences sales. Don’t discount the power of leveraging information that is captured through advanced solutions. To break through into a new stratosphere of profits, you need to be armed with tools that can analyze millions of VINs while including OEM window stickers. Empower your lot with robust desktop and mobile solutions that offer end-to-end visibility of your entire pre-owned operations. That’s where you’ll start to break through to new profits.
You’ve shown that you can source. Illustrated that you can manage. Now it’s time to sell. With the inventory on your lot under control, bring your team the skills needed to sell like champs. The market is still evolving, so you’ll want to work hard to bring in profits that match last year’s record-breaking numbers. Put information into the palm of your sales staff’s hands. Give them access to insights about make and model, with specific details on packages and trims. Your team becomes instant products experts and can meet customer expectations while exceeding their needs.
Increased profits aren’t just some fairy tale. If you want more money in your pocket, then you need the right partners in your corner. From acquisition to inventory management, MAX Digital and ACV bring you the opportunities to stock your lot, manage your vehicles, and sell for the best profit. Your road to success starts with a free consultation. Contact us today and discover all the ways MAX Digital can help your dealership grow.