Profitability begins well before cars are moving off your lot. The foundation of a solvent auto dealership rests with its ability to manage its inventory in a way that sets up both the customer and salesman for success.
Inventory management is an often underlooked component of profitability. Operating in the black involves more than just touting the features of a car and offering some generous financing.
There are several ways in which an inventory management system can provide a boost to your bottom line.
Knowledge of inventory
Having a complete knowledge of your inventory involves far more than simply knowing which cars are parked on your lot at any given time. It includes knowing which cars should be there based on your market demographic.
Different cars sell better in different areas, and an effective inventory management system can align your sales with the needs of your customer base.
Pricing a car on your lot is not just a way to tempt the customer. It’s a way of protecting your bottom line and ensuring profitability. Too many dealerships fall victim to the “double discount” due to inefficient pricing from the onset.
An inventory management system can leverage real-time market data to help you price your cars in a way that is competitive to the market, comparable to third-party applications and protective of your assets.
It’s easy to overlook trade-in values and used car acquisitions when speaking about profitability. Just offer the Kelley Blue Book value to get the customer on the hook, right?
You need the proper leverage to negotiate competitively and that entails granular details such as trim levels and upgrades.
Inventory management software from MAXDigital uses advanced analytics and intuitive decision-making tools to achieve increased gross profits by maximizing inventory turnover.
It’s never been easier or more efficient to acquire, appraise, and price inventory, all while tracking every vehicle that comes in and off the lot in real time. You’ll start acquiring the right vehicles for your market, pricing them appropriately and watching them practically drive themselves off the lot.