Today’s auto dealerships are well aware of the importance of the cost involved in reconditioning of their inventory and as a result, they have started focusing on the same. This has created a scenario where it has become extremely important that one single person has the ownership of the entire process. This person should track and monitor the entire reconditioning process and be empowered to hold all the vendors and departments accountable for the time and cost of reconditioning at the dealership.

Today’s automobile landscape has become far more competitive compared to what it used to be just a few years ago. With the advent of online price comparison services, it is almost impossible now for the dealerships to sell their pre-owned inventory for an increased pricing. Therefore, with almost no chance to alter the top line, the only way for them to increase the profit margin is to reduce their cost. Reconditioning cost and purchasing cost are the two components of this cost. Dealerships acquire most of their cars from the auctions, and they have absolutely no control over the price. Therefore, the only probable area where the cost can be controlled is the cost of inventory reconditioning and the number of days required to complete this process.

Suppose you are targeting a turn cycle of sixty days. If the reconditioning time of your inventory increases, you are left with less time to sell your car before deciding to wholesale the same. Therefore, you can understand why it is important to effectively manage the cost and time of reconditioning.

Though there are tools like Simple Recon for tracking the reconditioning process, it can’t be any better than the details entered in this system. Therefore, the most sensible approach would be to designate someone as the ‘Chaser’ or the ‘Reconditioning Manager.’ This person’s responsibility should be to ensure that all details entered into the system are accurate. This process will ensure that the system gets regularly updated by all the vendors and departments. The Recon Manager’s job should be to follow-up if any update is missed by any of the vendors or departments. If any due date is missed, Recon Manager would also raise the red flag. Other jobs of the Recon Manager include providing regular inputs on the daily and overall performance of the departments. 

Reference: http://www.simplerecon.com/Why-do-you-need-a-recon-advisor.htm5

Today’s auto dealerships are well aware of the importance of the cost involved in reconditioning of their inventory and as a result, they have started focusing on the same. This has created a scenario where it has become extremely important that one single person has the ownership of the entire process. This person should track and monitor the entire reconditioning process and be empowered to hold all the vendors and departments accountable for the time and cost of reconditioning at the dealership.

Today’s automobile landscape has become far more competitive compared to what it used to be just a few years ago. With the advent of online price comparison services, it is almost impossible now for the dealerships to sell their pre-owned inventory for an increased pricing. Therefore, with almost no chance to alter the top line, the only way for them to increase the profit margin is to reduce their cost. Reconditioning cost and purchasing cost are the two components of this cost. Dealerships acquire most of their cars from the auctions, and they have absolutely no control over the price. Therefore, the only probable area where the cost can be controlled is the cost of inventory reconditioning and the number of days required to complete this process.

Suppose you are targeting a turn cycle of sixty days. If the reconditioning time of your inventory increases, you are left with less time to sell your car before deciding to wholesale the same. Therefore, you can understand why it is important to effectively manage the cost and time of reconditioning.

Though there are tools like Simple Recon for tracking the reconditioning process, it can’t be any better than the details entered in this system. Therefore, the most sensible approach would be to designate someone as the ‘Chaser’ or the ‘Reconditioning Manager.’ This person’s responsibility should be to ensure that all details entered into the system are accurate. This process will ensure that the system gets regularly updated by all the vendors and departments. The Recon Manager’s job should be to follow-up if any update is missed by any of the vendors or departments. If any due date is missed, Recon Manager would also raise the red flag. Other jobs of the Recon Manager include providing regular inputs on the daily and overall performance of the departments. 

Reference: http://www.simplerecon.com/Why-do-you-need-a-recon-advisor.htm5