With each dollar adding up, you need to be strategic with how you price what inventory you have. And to do that, you need a rich data set. New car pricing isn’t a guessing game. Misjudging margins can cost your dealership large amounts of money. With the overall slowdown of new inventory starting in 2020, we are seeing a general uptick in price on both new and used vehicles. On the surface, this seems great for dealerships. But it’s just the tip of the iceberg as there is more to the story.
Let’s take a step back for a second. You might be wondering how data plays a factor in all of this. When it comes to your lot, you need to be competitive with how you acquire inventory. On top of that, you also need to be strategic with how you manage it. And that’s where data comes in. Especially for pricing, you must utilize real-time relevant vehicle valuation with multiple proof points. With a proper tool, you can include third-party resources like KBB, NADA, and Edmunds, as well as market availability/scarcity profitability. In doing so, you can validate your pricing and appraisals making it easy to avoid unnecessary discounting.
Stop thinking of your inventory management system as simply some sort of means to an end. Rather, think of it as a solution to help your dealership drive gross and volume. Your team gets empowered with data to get the right cars stocked on your lot and move them efficiently. This allows you to introduce a transparent, streamlined, and efficient process for selling vehicles. The customer will be able to trust that you are bringing the best deal possible to the table, and you hold much more gross on each transaction.
Every aspect of the car buying process is important. However, inventory management presents itself as the backbone for internal and external operations. If you want to hold more gross, you need deep market data joined with your sales history. Methodically target the years, makes, and models most likely to sell from your lot, and couple that information with those that have historically done well in the past. Best of all, you can customize attributes to match local market demand.
Inventory management isn’t just simply a way to maintain your assets. If executed properly, it is a game-changer for holding gross. There are a lot of vendors out there who overinflate their products. Don’t be goaded into a solution that simply won’t work for you. You can have a system that leverages actual market data and DMS Performance analytics, not just corporate jargon. And it doesn’t stop there. Team your inventory management system with a tool for trade-in and appraisals, and you have a 2-way collaborative solution for achieving your goals. MAX Digital provides practical solutions to your daily problems. From big to small, MAX Digital delivers next-generation tools capable of bringing you better grosses on every transaction. Schedule your consultation today!
