Similarities Between Dealer Inventory Management & Cash Management
When it comes to managing your inventory, you are also managing your cash and overall profit. This is because there are a lot of Similarities Between Dealer Inventory Management & Cash Management. They can be considered almost the same thing for many different reasons. It is also to picture them as the same as well because the longer your inventory sits, the more cash you will lose.
Similarities with Inventory and Cash Management
When you are looking at your dealer’s inventory, you should picture each vehicle as a pile of cash because, in sense, that exactly what it is. The longer that “pile of cash” sits on your lot, the more it starts to shrink down. That is why if you are not managing your inventory that well, you are also not managing your cash flow that well either. These Similarities Between Dealer Inventory Management & Cash Management easily can show you how to better your management as well. There are many tips you can look into that can help better your inventory and in turn, better your cash management.
Dealer Inventory Management Tips
If you are having trouble managing your inventory, it can easily cost you money which means you are not managing your cash and inventory as well as you could be. Never start reviewing your units after 60 days because you are too late. You should, instead, start reviewing after 15 days. This way you can identify when you may have purchased too many of the same vehicles people may not be interested in right now. Fresh vehicles do sell faster and gain more profit for you.
This is why you need to manage your inventory constantly so you know when and where to make timely adjustments. If you wait too long, it will be too late and more money will be lost. To help manage all of your vehicles, it is best to use reliable software as it can make it easier for you to find a vehicle as well as group vehicles into days so you know exactly how long they have been there.
There are many Similarities Between Dealer Inventory Management & Cash Management and it is important to know that. If you treat each vehicle like cash, your inventory management will become a little easier as you will find out why some vehicles are not selling or why something was never ordered. We at PGI Auto offer many different tools to use to manage your inventory including software, tools, and tips. If you have any questions, you can contact us at 877-622-2291.
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