One of the things I encourage dealers and managers to do in my workshops is to sort their used vehicle inventory by cost or investment, with the most expensive units at the top.
Then I teach them 4 specific ways to attack their 10 most expensive units. (If you want the 4 specific ways, shoot me an email.)
If you want to be better, start attacking your 10 most expensive units every day. There’s only one definition for the word “every.” Go look it up.
One of the more interesting but not surprising things we’ve observed over the years is that if you lay your aged inventory side by side with your 10 most expensive, the two lists have a lot of the same units.
You would think the more money you have tied up in a unit, the more money you would make. If you think that, you would be wrong.
Adding to that problem is the longer the more expensive units sit, the worse the ROI is going to be. If you want to spot “brewing trouble,” start attacking your 10 most expensive units.
Of course, inside your head ROI doesn’t matter to you today because you have such a “sweet” bottom line.
That said, for the well-disciplined dealers everything matters.
A whole bunch of things will start to matter to you as this market changes.
So, go ahead and lay your two lists side by side and validate what you already know.
We often know things but look the other way.
When you look the other way, you’re just being stupid. Don’t be stupid.
That’s all I’m gonna say, Tommy Gibbs.