Inventory Management Tips to Increase Car Inventory Turnaround
There are many different tips available that aim to improve your inventory management even if your inventory is doing just fine. The last thing you want is your vehicles sitting on your lot for a long time as turnover is very important in getting your newest and most exciting inventory visible and prominent on your website. If you follow some of these Inventory Management Tips to Increase Car Inventory Turnaround, you may start to see an overall improvement.
Avoiding Problematic Inventory Management Practices
The last thing you want to see is your used vehicles still sitting on your lot after a certain amount of time. Turnover is very important, as your inventory should always be changing to keep both returning and new customers invigorated and interested. To help make sure this happens, there are some rules you can follow. The first thing is to always keep a firm 45-day inventory turn policy. Any vehicle that goes beyond this point must go even if that means sending it away. Some dealers may wait 90 to 120 days, but that may prove too long for others, as most vehicles lose their front-end profit potential by 45 days.
Always make sure you have a market-minded and timely approach when it comes to pricing vehicles as well. This is one of the Inventory Management Tips to Increase Car Inventory Turnaround providing an obvious benefit. For example, a dealer might price fresh cars at about 98 to 100 percent of the local market. If the vehicle doesn’t sell within two weeks of listing, the pricing may drop to 95-97 percent of the market, and so on. Keep up this trend it either sells or hits the 45-day mark.
How to Increase Positive Automotive Inventory Turnaround
Of course, there are many other tips you can find as well, including having at least half of your inventory listed as less than a month old. Having predominantly fresh vehicles versus vehicles that are 30 to 44 days old on the lot is very important for multiple reasons. First, it helps give the illusion of vehicles being sold and moved with frequency. Next, you also see more profit on selling newer vehicles. However, never neglect the older vehicles, as they need to be moved before it hits that 45 day deadline.
If you follow some of these tips to help improve turnaround, you will start to see that increase in sales you want. Always watch over your inventory while implementing Inventory Management Tips to Increase Car Inventory Turnaround. We at PGI Auto offer many different products, tools, and software to help your inventory in different ways. We are here for you. If you have any questions, you can contact us at 877-622-2291.
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