How do you keep a tight turn?

Tom Archer
The solution to enforcing a turn policy whether 50, 60 or 70 days lies within the used car managers pay plan. Yes, re-pricing the inventory is essential and so is advertising and bonuses. However, until you have the pay plan assist you in managing your inventory you will always have a problem. You do not need to change the used car manager's whole pay plan. Just ad the sentence that at month end 10% of the value of any used car in stock will be charged back to the commissions of the used car manager. If you have a current aging process and want to keep you manager you can make the new pay plan take effect in 90 days, but give them the new pay plan today. I guarantee that will do more to eliminate aging than any other thing.
Christopher Murray
Matt, if indeed you have a "hard" turn policy of 70 days it means; "All vehicles will be retailed, wholesaled or auctioned by their 70th calendar day with no exceptions." Step one is to establish Buckets. Say 1-14 Days, 15-30 Days, 31-45 Days, etc... You decide, in relation to price what to do in each bucket. For instance go for all the gross from day one until day 15. Then re-price to the market from day 16 to 30, re-price to get your car on page one of an Auto Trader or Cars.Com., from Day 31 to 45 be below the or "top of page" in a search on Google, etc.... From then on price the car at auction value, daily if necessary to flush out the remainder. Selling a car at auction price to a retail customer is a win even at a loss! You already made money on the unit from UVI, Service, Parts and Doll Up.......everybody but the "workhorse" (the Sales Department) already got paid on this vehicle but no off-setting revenue has come in until it is sold! So, start high and end up selling for auction to generate the revenue, free up a frozen assets and replace the slow mover with a market relevant replacement. Just an FYI 70 days is an extremely long turn period by today's standards! Get to 60 as soon as you can then close in on 45 on your way down to 30 as you get more successful! Turn and earn!!!!!! A fast nickel is worth much more than a slow dime!
Tom Gregg
Matt, there are many things you can to properly merchandise your vehicles so that age isn't a factor. The important factors of proper merchandising your pre-owned inventory are pricing, photos and descriptions. I agree with Mr. Murray that age buckets are effective to aide in monitoring and making strategic changes but requires additional information on the market days supply and how desirable the unit may be. If you are selling a 2011 Toyota Camry LE with 40K miles, high margins may not be the best plan considering the amount available in most markets. The most important part of pricing is to make sure you are relevant and can be found, AutoTrader,, vAuto and many other tools and advertisers have information illustrating the amount of times you show up in a search and the amount of times your vehicle is viewed. Knowing your VDPs (Vehicle Detail Pages) and SRPs (Search Result Pages) is crucial to making effective and quick price changes. Shoppers are looking for high quality photos of exterior, interior, engine and any unique feature that makes your vehicle unique. Also, the more photos you have, the more likely you are to be clicked on. If you have a vehicle that is showing up in searches but not being viewed, change your lead photo. If you have snow in the background and it is spring, reshoot the vehicle. The first 150 characters of your vehicle descriptions are viewed on the Autotrader search results pages. Make sure your key features that differentiate your vehicle are listed here first. If the vehicle has leather, navigation, is a local trade in or certified write that first and follow it up with a well written description. Again, if you have a vehicle showing up in searches but not being clicked, rewrite the description and reevaluate in a few days. There are many things you can do to ensure you have success retailing vehicles early in their lifecycle when profits are their highest. If this is done right and constant attention is paid to your numbers you will never anything approach 60 days.

Featured Masters

No members found

Marketing Solutions Products

100%  Recommended Recom'd 3 Ratings
Company: Outsell
100%  Recommended Recom'd 19 Ratings
Company: TradePending
100%  Recommended Recom'd 4 Ratings
Company: MAXDigital
100%  Recommended Recom'd 3 Ratings
Company: TradeVue

 Rate a Vendor Give feedback in three quick steps

Select a Vendor & Product
Can’t find what you're looking for?
Add a Vendor  or  Add a Product