1. Resell the team that you have the pricing correct. Remind them that more than 80% of the people who shop for a used car are shopping via the Internet. In most cases the customer would not have shown up today if they didn’t like the vehicle you have or felt the price wasn’t in the ball game. Thus, we need to stay focused on selling the fact that we have got the price right, they are at the right place, so don’t bother asking for more discount. The management team has to do a better job reselling this concept on a daily basis.
2. If you have aged inventory your goal should be to retail out of it by April 1. In doing so you need to realize that in order to retail out, you’re going to have to price them right. Pricing them right and finally doing what you should have already done is going to cause your average gross to take a hit. You’re going to put yourself in a better position to sell lots of new and used cars as the spring rolls around because you are now in the driver’s seat and not trying to dig out of a hole.
3. Implement the trade walk with all members of the management team. Use my life cycle management process. Each morning analyze the fresh trades and purchase units to determine the number of days it will be assigned. Make sure you spot the most problematic units, price them right and get them gone.
4. Start tracking 30/30. Track the gross on units you sell under 30 days old and the gross on units you sell over 30 days old. You will soon realize those over 30 days old units are killing your averages. Ask yourself right now, how many units do you have in stock that are over 30 days old? What’s the percentage? If more than 50% of your inventory is over 30 days old you can bet your averages are going to take a hit.
5. Attack the 10 most expensive units in stock. Print out a list of them every day. Give a copy to the service manager, desk and F&I managers. Make sure the team has top of mind awareness on these units. Price them right on day one. Consider putting bonus money on the most problematic ones. These units will eat your lunch if you don’t stay on top of them.
6. Do anything you can to improve speed from the time you own it until it’s on the lot and ready to go.
So, there you have it. 6 easy things to get focused on that will help you have the best spring and summer in the history of your business. That’s all I’m gonna say, Tommy Gibbs
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