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.
Diversifying Your Inventory’s Sources
Where you do get most of your used car inventory? Are you relying heavily on trade-ins, or are you bringing in a lot of cars from auction?
There are many ways to go about inventory acquisition, and it’s important to hit on a balanced method that serves your dealership’s best interests. The solution for one store might not work for another one, even if they’re part of the same dealer group.
What you don’t want is for your inventory to stagnate because you stocked up on the wrong cars. With inventory management software from MAXDigital, you can take account of your dealership’s historical data to find out which cars produce the highest gross for you. Working in real-time data from your market will also help you go after the right cars.
When you have those cars in mind, our platform can help you find them anywhere within your region. Trade-ins are an excellent source if your appraisal process is efficient and you’re pursuing models that match your cost-to-market projections. You can also turn auction cars into an advantage for your store if you bid based on data instead of instinct.
Accountability on Appraisal
Every car has a set value as determined by the market, and your dealership disregards that value at its own peril. If you pay more for a car than it’s worth, how can you expect to profit on it? How will you achieve the turnover you need to protect your margins?
The appraisal tools that MAXDigital puts at your disposal will help you make sure you aren’t overpaying or overbidding. We give you exclusive access to one of the industry’s largest databases. The value of a car is determined by make, model, and mileage, but also by engine type, trim level, color, and more.
It’s only when you put all the data together that you know you’re getting the best deal. That’s why MAXDigital wants to help your dealership stay accountable throughout the acquisition process.
Precise Pricing Keeps Your Dealership Profitable
Value is something you have to keep in mind at every step of inventory management. Working in this industry, we tell customers that the value of their car starts going down the moment they drive it off the lot. We have to remember that the value of each car also goes down every day it stays on the lot.
MAXDigital’s Inventory Management Platform gives you pricing tools that help you modernize your pricing strategy and keep your inventory priced competitively. Our software will also help you monitor your inventory so you can make sure you’re moving cars at a healthy pace. Track cars across multiple stores and set notifications when it’s time to lower prices. Taking charge of your inventory and empowering yourself with data is the best way to improve your turnover ratio.
If you want to learn more about what the MAXDigital Inventory Management Platform can do for you, schedule a demonstration now. Reach out to us directly if you want to learn how our Merchandising tools can help you reach customers in your area and defend the value of your inventory.