Used car inventory will be more plentiful this spring and summer than in years past. It will be even more important you stock your inventory with the best-selling, most profitable pieces of inventory for your location in order to drive traffic, gross and increase sales and ultimately lead to profitability.
Even the most successful dealers can only stock 50%-60% of their inventory from trades. Filling in the gaps with off-site purchases can be a very risky and expensive task. Making the right decisions is critical to drive profitability.
As you head out this spring and summer, I ask you “think like a baker.”
It’s important that a baker have enough loaves of each kind of bread every day. Too much pumpernickel, he/she has to throw away what does not sell. That waste costs him/her money and in your case would be a wholesale loss. Not enough rye and his customers will go someplace else to buy. One thing is certain; a baker does not stock his shelves with anything but baked goods. Franchise car dealers are the same way. Your brand is who you are. Leverage the marketing dollars of the manufacturer and be sure you stock the inventory that people think and expect you to have.
A baker does not carry fish or fruit in his display case. Why should you? Be sure your inventory is stocked with the cars, trucks and SUV’s people associate you with. Ensure you appropriate days’ supply of your best sellers to avoid wholesale loss. Used car managers time is extremely valuable today. Before you head out and spend your money on inventory you have little experience with, no brand support for, both from an advertising and service perspective, be sure your brand’s top sellers based on your sales data are properly stocked, merchandised and priced. Dominate that market first and then consider stepping out and purchasing market performers.
For more information on how to ensure you are stocking the right inventory this busy selling season, contact myself or one of my teammates here at MAXDigital, parent company of FirstLook, for more details.