The Profit Is In the Purchase.
Inventory Pricing Turn VS Gross
How are you pricing your current inventory. With the price of used cars steady climbing and margins being compressed are you pricing your cars based on the current market or business as usual. If you are paying $700 to $1200 more for the same vehicle, please make the adjustment in your pricing, or in 45 days you will have an over aged unit. If you use Vauto 80 to 95% cost to market rely on your finance team. If you are old school cut the profit margin in half and rely on your finance team.
Time is Money
What is the daily holding cost of your current inventory? You sell a 60 day old vehicle with a gross profit of $1,200.00 Your average daily holding cost is $25.00 x 60 days = $1,500.00 You sell a 90day old vehicle with a gross profit of $1,200.00 Your average daily holding cost is $25.00 x 90 days = $2,250.00 Did you really make a profit?
Inventory | Speed to Market | Pricing
The new car business- You need 80% 80 cars to sell 100
Turn Pricing
Turn Pricing = Better ROI
Gross Pricing = Wholesale Loss
Turnrate
Turnrate is the metric used by RSACG to determine the efficiency in which pre owned vehicles are sold
Turnchart
A visual graphic showing all vehicles on the lot (Hopper), points per vehicle, vehicles sold and a vehicle hit list.