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 50. 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?
There are two problems going on in today’s market.
1. We 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 ton of gross on them, but they serve a very worthwhile purpose in your business model. There are benefits galore at turning and burning these units.
2. The bigger problem is dealers often think turn and burn on everything, with little or no regard for an attractive market position.
If you have a favorable cost to market and days supply why do you need to blow that unit out so fast? Yes, you’ve made a profit, but you left a bunch on the table.
If you want to improve gross profit, 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