BROOMFIELD, Colo. — Time is of the essence when it comes to preparing units to list for sale, as every day a fresh unit sits on the dealer’s lot costs them front-end gross. With this in mind, DealersLink, which operates a dealer-to-dealer auction marketplace, delivered the following tips to help dealers get vehicles to the digital frontline quicker:
Tip 1: Reduce reconditioning time by sourcing “clean inventory”
The average auction vehicle takes six days to get lot-ready, which costs an average of $50 per day or $300 per unit. A significant way dealers can mitigate reconditioning costs is by sourcing “clean upstream inventory,” or inventory that is already sitting on a dealership lot being offered for retail sale. Most aged retail inventory has been previously reconditioned and is typically ready for the digital frontline in less than two days.
Tip 2: Buy the right inventory at the right price
First, dealers should know exactly what profit they can make on each unit before they buy it. Dealers should leverage their dealership’s analytical data to optimize their inventory mix for the local retail market. Then they can stock the right units and price them correctly to be competitive in their markets.
Tip 3: Adopt a market-based pricing strategy
Buyers can now go online and research exactly what vehicles they want, how many units are available in the area, and what price they should pay. To stay competitive, dealerships should begin vividly marketing their retail units online with market-based pricing on vehicles. This will generate more views of their inventory, thus improving the chances of selling units quickly at the maximum profit their market will allow.
“We have the data that shows what’s working and not working when it comes to selling inventory,” said DealersLink CEO Mike Goicoechea. “If implemented correctly, these and other tips we have will get cars to the digital frontline quickly while saving dealerships thousands of dollars per month and significantly increasing front-end gross.”
DealersLink has compiled a new free e-book titled, “Six Steps for Dealers to Get Their Cars to the Digital Front Line.” To download the e-book,” click here.
Originally posted on F&I and Showroom