Throughout my visits with groups, I continue to see the same dynamic repeat itself when trying to get groups to do more “in-group transfers”. Sourcing inventory internally is a great way to increase retail success while avoiding wholesale loss. I’m not talking about “swapping spit”, or “I’ll trade you my aged over book car for your aged over book car”!!! Nor am I advocating the ole, “let’s keep trading this car in the group and re-starting the clock”.
First, let’s talk about stocking. If a Lincoln store has a 40 day old 2014 CL Class that I’m understocked in over at the Mercedes store, move it! If the Mercedes store has a 2013 Silverado Truck that’s not getting any bites, move it to the store that needs trucks. There’s no reason top selling, most profitable and fast-selling vehicles aren’t moved to the store with the best shot at selling it, especially if they’re aging. Sourcing inventory internally not only makes business sense, but avoids auction fees. I can’t tell you how many times I’ve seen cars sent to auction only to be bought by their sister store in the group!
Second, aging inventory needs a good home. If you’re not getting any hits on a vehicle and you have it priced/marketed correctly, move it! Just because a vehicle comes up on some magazine list as a “Hot Seller”, doesn’t mean your Lexus store is going to be good at selling a domestic truck. Move it to the store that sells trucks!
Third, encourage the behavior!!!!!! Too many times I’m in a group meeting where one UCM doesn’t want to buy/sell cars from/to the other UCM because “it will make that guy look better on the reports!” I don’t blame them. Why not look at the number of times a store sources inventory from another and praise them on their process? Get the UCM’s together often to create a team culture. Buy them pizza, go bowling, serve tabasco soaked peanuts and beer from the back of a pickup during an internal auction (been there done that! Thanks to a group in Alabama!). Do this and maybe next time when they need a Buy-Bid, they’ll call one of their sister stores and not their buddy over at the buy-here-pay-here lot.So I challenge the Directors, Owners, GM’s, UCM’s of groups to build a culture that encourages in-group sourcing of inventory. Work as a group and dominate your market.
So I challenge the Directors, Owners, GM’s, UCM’s of groups to build a culture that encourages in-group sourcing of inventory. Work as a group and dominate your market.