I never like to admit being frustrated, but I am. I really am. I’m frustrated that dealers still allow themselves to have aged inventory when they know it’s the killer of gross, volume and do I need to mention the attitudes of the sales staff?
If you go back about 20 years I could possible accept the fact that some dealers just didn’t understand the pitfalls and consequences of aged inventory, but that is no longer a valid excuse. I mean really…dealers and managers alike have been educated by 20 groups, conventions, workshops and brilliant people like me as to all the reasons why allowing aged inventory doesn’t work, yet I see it time and time again.
It’s beyond my comprehension that dealers are on 75, 90 days and beyond as a turn policy. Worse than that, some don’t even have a policy. Uggg…how in the world can someone convince themselves or allow someone else to convince them that keeping units past 60 days is a smart business decision?
How does “hope” overtake “reason?” As in “I hope I sell it and make some money on this depreciating asset” vs. fundamental reasoning that it’s only going to happen when a miracle falls out of the sky. Simply put, “hope” is not a strategy.
Dr. Seuss said it best “You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose. You’re on your own. And you know what you know. And YOU are the one who’ll decide where to go…”
I preach and preach that one of the top gross killers are those cars you retail over 45 days old. Can anyone reading this prove otherwise? Since that’s a true statement what do you think a 75 or 90 day old car does to your average gross profit?
Sure, let’s blame it on the Velocity concept of the “race to the bottom.” Makes sense, let’s blame it on someone else. Let’s blame it on the used car manager. Let’s blame in on technology. Let’s blame it the Internet. Let’s blame it on the difficulty of finding cars. Let’s blame it on George W. Bush.
Oh, please….How about looking in the mirror and let’s blame it on you, the person that allows it to happen in the first place.
Let me remind you that the key is not about dumping aged units in the wholesale market and losing money on them. It’s all about having a clear-cut strategy of turn and finding a retail buyer. Being on a 60 day turn does not mean wholesale losses, just the opposite.
Maybe I shouldn’t be so frustrated. Maybe I should remind myself that as long as dealers have aged units it gives me something to do and something to write about. Keeps me busy, makes me money. But from the bottom of my heart I’d give up being busy and making money if all dealers just “got it.”
I’m staying frustrated and busy, that’s all I’m gonna say, Tommy Gibbs