Why is having the right inventory so important to an automobile dealer’s success? Simply put, your inventory isn’t of any value to you unless it is in a constant state of motion … and it is vital that you always have not only the right number of cars – but the right mix of cars, too. It’s been said many times (and in most cases it’s true) that a new automobile is the second-largest purchase someone typically makes, right behind the purchase of a home. And because they usually don’t buy a new car all that often, a car dealer has to have everything a customer is looking for on their lot when this prospective buyer visits their store.
Think about it: today’s automotive buyer is inundated with multiple brands and models. If you have been successful enough to get them to come to your dealership, you certainly don’t want them leaving without making a sale; or worse, having them go to your competitor and buying there. So what are some of the ways to ensure that they stay? Having the right inventory is a great place to start!
Of course, it’s easy to say “we keep track of what the most popular vehicles are and stock more of those”. Others might say “we make it our business to know our market demographics”. While all this is a good start, it is only part of the overall process. In fact, a large part of the work should already be done online – in the way your inventory is presented there – before the customer ever sets foot into your store. That’s because the Internet has made it very easy for a potential customer to decide on the exact vehicle they want before they ever leave home to check them out in person. So everything that is important about every car, truck or SUV in your inventory had better be clearly displayed online; you are short-changing yourself if your vehicle information is out-of-date or incomplete. On the flipside of this, the Internet has made consumer behavior trackable … and therefore more predictable. Take advantage of this wherever possible!
At the end of the day, there are certain fundamentals concerning your inventory you can’t ignore … and you should ask yourself these questions. Am I stocking the right cars? Am I pricing them at or below market level? Am I paying an advantageous price to obtain my vehicles? Am I taking advantage of rebates and incentives? Am I selling my cars before they fall into the category of “aged inventory”?
Inventory: We’re Here to Help
Your dealer software systems can help you make the right decisions, but there’s always the human element in the equation – and that can be both good and bad. If you are not sure you have the right inventory mix and everything that goes along with it, give us a call at (321) 397-0777. We can help you discover the formula for success.
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