How Quickly is Your Dealership Turning Vehicles?
Today there are many challenges facing new-car dealers. Consumers are shopping smarter and competition is getting tougher. With margins narrow and inventory levels at an all-time high, it is more difficult than ever to turn inventory. But don’t be discouraged. You can overcome these obstacles by optimizing your new-car inventory with the following key factors.
First, it is vital to have the right inventory mixture. Many dealers make their ordering decisions based on previous orders or their gut feelings. As a dealer, it is essential to be more strategic and take an in-depth look at the market trends. The key is to stock the fastest moving vehicles. To do this, identify all unique ordering combinations. The focus should be on vehicles that are in high demand with a short supply. These ordering combinations will equate to more sales and quick turning inventory.
Order the fast moving vehicles while paying attention to the slow movers at the same time. There is no need to reorder a vehicle that has been sitting on the lot for over a year. By monitoring the desirability of vehicles, you can avoid this scenario and refrain from ordering slow moving inventory that will negatively impact turn and gross.
Consumers are also shopping smarter by reviewing cars online before making a purchase. Have the right mixture online to organically drive traffic to your showroom. The right inventory on your website translates into higher engaged shoppers who are more likely to visit the dealership. More visits lead to more sales, so having a competitive online presence is critical.
To read the other key factors, check out the latest Automotive News whitepaper: http://bit.ly/2mK1QZ4