Your inability to move fast is a killer for your used car business. Moving fast puts you in the winner’s circle. Not moving fast puts you in the loser’s circle.
The speed of your service department has a direct impact on your ability to produce gross in the used car department. And without a doubt, it impacts how fast you get a car out in the Internet world. You cannot afford a 7 to 10 day window.
I have never understood why some dealers allow the service department to control their ability to turn used car inventory quickly.
It’s as if the Dealer/Owner Operator has some sort of fear of the service manager when it comes to explaining who wears the pants and who the service department’s best customer is. “Tail wagging the dog?” Have you checked the name on the sign on the front of the building lately?
I’d be preaching to the choir if I went over all the reasons the service department needs to cooperate and get your used cars through service just as quickly as possible.
Unfortunately, many service managers haven’t been trained to understand that your inventory is costing you a ton when it’s sitting. I’m not selling my workshop with this newsletter, but I always push the dealer to include the service manager in my used car workshops.
If I was giving service managers the benefit of the doubt, I think in some cases they get caught up in the day-to-day issues with your retail customers and they don’t pay attention to what’s going on with your used cars.
They need to continuously be educated about how fast the market can change on a used car and what it does to your bottom line.
If you want to improve your speed, then you need to take a hard look at my “Life Cycle Management” process. “Life Cycle Management” will change your used car world forever, make you lightning-fast, eliminate wholesale losses, improve turn and gross profit.
One of the absolute killers of your ability to turn units fast is your poor display of used cars on your website. It is not unusual to have used cars in inventory for a week or two and they are still not properly represented on your website. I’m amazed at several things when I look at dealership websites:
How hard it is to get into the used car section. Far too many clicks. (Lack of speed kills)
The lack of quality pictures. (You need your own photo booth!)
The lack of quantity. You need 40 plus pictures to be competitive in today’s market.
The posting of stock photos. (You’ve got to be kidding!)
Description of cars with no photos or saying “photos coming soon.” (Another you’ve got to be kidding!)
One through five is because someone doesn’t care, someone is lazy or someone just doesn’t have a clue. Regardless of the reason, it gets back to speed being the killer and speed making you a winner. You have to decide how serious you are about this business.
If you’re dead serious you will get off your duff and get these things fixed. If you’re not then you and your business will just soon be dead. Speed Wins. Speed Kills. You get to make the choice.
That’s all I’m gonna say, Tommy Gibbs