Getting the inventory right is vital to the success of any car dealership. After all, its sales and profits may suffer if it does not have the right vehicles in the right quantities in its inventory. As pointed out by Mark Gilbert Scottsdale AZ, inventory management is way more than selecting the vehicles to be sold to the customers. It actually requires dealership owners or managers to monitor the cars on the lot, track their inventory over time and develop robust strategies while following certain key practices.
Mark Gilbert Scottsdale AZ marks some of the best practices for car dealership inventory management
It has become more important than ever to have an effective automotive inventory strategy, with the auto industry in a state of fluctuation. There is way more to inventory management than stocking the lot with a certain number of vehicles. A robust inventory management processes in place is needed to maximize the profit of the auto dealerships. Efficient inventory management processes help in pulling in leads, improving customer satisfaction and getting better per-vehicle margins.
Here are a few best practices for inventory management that car dealerships must follow:
- Know the market for the vehicles: Dealerships that move inventory cannot afford to depend on personal preferences or gut instincts. Optimizing inventory and improving profits necessitates a good understanding of each vehicle’s market. Modern car buyers commonly do their research online to narrow the list of vehicles they would want to purchase. Car dealerships can use this customer behaviour to their advantage. Doing a simple Google keyword analysis can help a dealership to identify the vehicles that are being the most searched online. Even though car dealership owners may not have any control over which models a manufacturer produces in a given year, they can certainly make stock management decisions as per the market. These include car trims, paint color, and upgrades.
- Adopt time-minded approach to vehicle pricing: Pricing is an important aspect of smart inventory management. Models that are less desirable in the market should be priced to sell off fast, so that they do not take up space in the lot for too long. Providing favorable pricing is usually a much better strategy than simply letting the car sit for months.
- Price with greater transparency: Car dealerships that follow a transparent pricing strategy tend to draw in more consumers, as well as being able to create more opportunities to make a sale. After all, trust plays a major role when making a huge investment like a car purchase.
As Mark Gilbert Scottsdale AZ points out, having an appropriate vehicle inventory management strategy can also help car dealerships to avoid various costly mistakes, especially when they are sourcing and marketing. An appropriate practice lowers the chance of overpaying or stocking the wrong vehicles right out of the gate. On the other hand, inventory checklists and content guidelines provide assurance that listings are free of errors and are as detailed as possible. They not only have all the features mentioned, but are generally listed in order of importance.