The first of anything is always the best. Coffee is a great example. I highly anticipate each morning the first taste of my cup of coffee.
It’s amazingly the best. Most things are like that.
The first time you kissed your wife, husband, girlfriend or boyfriend is far better than the smooches you’ve most recently got.
The first lick of your ice cream cone is better than the last and so on. It’s called the law of stuff tastes better at first. (Yes, I made that up.)
Used cars are that way too. Selling one in the first 10 days tastes a lot better than selling it on day 70. The biggest difference between selling a used car and getting a kiss is that selling a used car is based on math.
Kissing is based on kissing. Imagine that?
Here’s the problem:
Dealers often failed to recognize those units that need to be first, as in sold really fast.
Those will be your most problematic units such as ones you’ve buried yourself in, bad color, auction purchases, high dollar unit, etc. These are units that you do not have a favorable cost to market or days supply.
You have to accept the fact that you’re not going to make a as much gross on those as you might make on others. Never forget they serve a worthwhile purpose in your business model. There are benefits galore at turning and burning these units.
Because the pandemic has had a dramatic impact on the law of supply and demand, some of our older kisses have been really sweet.
Unfortunately some dealers have been hypnotized into thinking an old kiss is always going to be just is good as a fresh one. Maybe you’re a great kisser or maybe you just slobber a lot.
Do yourself a favor and take a look at a handful of your oldest units in stock. Ask yourself, “why are these units still here?”
The odds are good that whatever you come up with was there on day one and you ignored it.
This article isn’t mean to be a commercial for my software product, but if you had been using my life-cycle management and recon tool, the odds of you still staring at those units would be about slim and non.
If you want to improve gross profit and volume, you have to know which ones to hold and which ones to fold and never forget all kisses are not equal.
That’s all I’m gonna say, Tommy Gibbs.