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3 KEYS TO IMPROVED
NEW VEHICLE INVENTORY
MANAGEMENT
Brian Finkelmeyer
Director of Conquest Business Development, vAuto
brian.finkelmeyer@vAuto.com
THE AVERAGE DEALER SPENDS
ON NEW CAR
INVENTORY MANAGEMENT
2–3 HOURS
PER MONTH
BILLION
DOLLARS
INVESTED
$163
3 KEYS TO IMPROVED NEW-CAR INVENTORY MANAGEMENT
of survey respondents on
this webinar are unsure of
their annual new vehicle
inventory turn58%
3 KEYS TO IMPROVED NEW-CAR INVENTORY MANAGEMENT
Nordstrom’s Secret Weapon
3 Drivers to Nordstrom’s Inventory Turn
Leverage data insights
about demand to drive
smarter stocking
Proactive pricing to
maintain a balanced
inventory
Balance inventories
across network of
stores
Pricing DistributionStocking Mix
Polling Questions
• What information do you use today for making informed stocking decisions?
• Recent sales history
• OEM recommendations
• Model line days supply
• Total cars in inventory
• Intuition/feel
3 KEYS TO IMPROVED NEW-CAR INVENTORY MANAGEMENT
3 Keys to Driving More Profit
from Your New Car Inventory
Pricing
Alignment
of pricing with
supply & demand
Dealer Trades
Making strategic
dealer trades to
get the right mix
Understanding
supply & demand for
every vehicle in stock
Inventory Mix
Inventory Mix
A B C
High sales volume
combinations
Medium sales volume
combinations
Low sales volume
combinations
ABCs of Inventory Management
Inventory Analysis
Quartile Group A Cars B Cars C Cars
1 64% 17% 19%
2 56% 19% 26%
3 50% 19% 30%
4 40% 22% 38%
Quartile Group Annual Turns Average Sales Average Gross
1 4.7 137 $327
2 7.5 144 $479
3 6.1 131 $363
4 3.8 90 $197
It Pays to Have the Right Mix
Volume/Speed 0-45 Days 46-90 Days 91+ Days
A Cars 26% 58% 16%
B Cars 24% 43% 33%
C Cars 18% 27% 55%
Speed of Turn is KING
Strategic Ordering – by Model/Trim/Color
Don’t Reorder Slow Moving Vehicles
427
Days Old
Polling Questions
• How often does your dealership adjust price?
• Daily
• Weekly
• Monthly
• Other
Pricing
MSRP Straight Line Discounting
Understanding
Opportunities
Where You Need
to Be More/Less
Aggressive
= $1,740 Loser?
Are We Giving Away Gross Unnecessarily?
 11 Days in Stock
 37 Market Days’ Supply
 Only gray version in
the market
- $25,484
- $25,930
- $24,740
Price to Market and Price Based on Age
Dealer Trades
Dealer Trades:
The Daily Grind
Dealer Trades Should Be
Given More Attention
• 30% of the new car
inventory is impacted
• 15% of cars older than
365 days are dealer
trades!
How Can This Work at
Your Dealership?
GREEN
Inventory Health Check Questionnaire
Stocking ------------------------------------------------------------------
What is my New Vehicle Aging Policy?
Pricing ---------------------------------------------------------------------
What is my New Vehicle Pricing Policy?
(Aging & market considerations)
Dealer Trades -----------------------------------------------------------
What % of my sales require dealer trade?
Health Checklist AMBER
Target is 65%
< 90 Days
Price early, not late
< 20%
RED
Quartile
Group
Annual
Turns
Annual
Gross
Annual F&I
and Doc
Floor Plan
Credits
New Vehicle
Department
1 4.7 $241,293 $847,847 $359,478 $1,448,618
2 7.5 $405,953 $973,778 $419,178 $1,798,909
3 6.1 $267,930 $848,077 $387,961 $1,503,968
4 3.8 $82,364 $480,282 $255,284 $817,930
Implications on the Bottom Line
Automotive News Articles
3 KEYS TO IMPROVED NEW-CAR INVENTORY MANAGEMENT
Q & A
Thank You!
Brian Finkelmeyer
Director of Conquest Business
Development, vAuto
brian.finkelmeyer@vAuto.com

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3 KEYS TO IMPROVED NEW-CAR INVENTORY MANAGEMENT

  • 1. 3 KEYS TO IMPROVED NEW VEHICLE INVENTORY MANAGEMENT Brian Finkelmeyer Director of Conquest Business Development, vAuto brian.finkelmeyer@vAuto.com
  • 2. THE AVERAGE DEALER SPENDS ON NEW CAR INVENTORY MANAGEMENT 2–3 HOURS PER MONTH BILLION DOLLARS INVESTED $163
  • 4. of survey respondents on this webinar are unsure of their annual new vehicle inventory turn58%
  • 7. 3 Drivers to Nordstrom’s Inventory Turn Leverage data insights about demand to drive smarter stocking Proactive pricing to maintain a balanced inventory Balance inventories across network of stores Pricing DistributionStocking Mix
  • 8. Polling Questions • What information do you use today for making informed stocking decisions? • Recent sales history • OEM recommendations • Model line days supply • Total cars in inventory • Intuition/feel
  • 10. 3 Keys to Driving More Profit from Your New Car Inventory Pricing Alignment of pricing with supply & demand Dealer Trades Making strategic dealer trades to get the right mix Understanding supply & demand for every vehicle in stock Inventory Mix
  • 12. A B C High sales volume combinations Medium sales volume combinations Low sales volume combinations ABCs of Inventory Management
  • 13. Inventory Analysis Quartile Group A Cars B Cars C Cars 1 64% 17% 19% 2 56% 19% 26% 3 50% 19% 30% 4 40% 22% 38%
  • 14. Quartile Group Annual Turns Average Sales Average Gross 1 4.7 137 $327 2 7.5 144 $479 3 6.1 131 $363 4 3.8 90 $197 It Pays to Have the Right Mix
  • 15. Volume/Speed 0-45 Days 46-90 Days 91+ Days A Cars 26% 58% 16% B Cars 24% 43% 33% C Cars 18% 27% 55% Speed of Turn is KING
  • 16. Strategic Ordering – by Model/Trim/Color
  • 17. Don’t Reorder Slow Moving Vehicles 427 Days Old
  • 18. Polling Questions • How often does your dealership adjust price? • Daily • Weekly • Monthly • Other
  • 20. MSRP Straight Line Discounting
  • 22. = $1,740 Loser? Are We Giving Away Gross Unnecessarily?  11 Days in Stock  37 Market Days’ Supply  Only gray version in the market - $25,484 - $25,930 - $24,740
  • 23. Price to Market and Price Based on Age
  • 26. Dealer Trades Should Be Given More Attention • 30% of the new car inventory is impacted • 15% of cars older than 365 days are dealer trades!
  • 27. How Can This Work at Your Dealership?
  • 28. GREEN Inventory Health Check Questionnaire Stocking ------------------------------------------------------------------ What is my New Vehicle Aging Policy? Pricing --------------------------------------------------------------------- What is my New Vehicle Pricing Policy? (Aging & market considerations) Dealer Trades ----------------------------------------------------------- What % of my sales require dealer trade? Health Checklist AMBER Target is 65% < 90 Days Price early, not late < 20% RED
  • 29. Quartile Group Annual Turns Annual Gross Annual F&I and Doc Floor Plan Credits New Vehicle Department 1 4.7 $241,293 $847,847 $359,478 $1,448,618 2 7.5 $405,953 $973,778 $419,178 $1,798,909 3 6.1 $267,930 $848,077 $387,961 $1,503,968 4 3.8 $82,364 $480,282 $255,284 $817,930 Implications on the Bottom Line
  • 32. Q & A
  • 33. Thank You! Brian Finkelmeyer Director of Conquest Business Development, vAuto brian.finkelmeyer@vAuto.com

Hinweis der Redaktion

  1. Stay tuned for later in the webinar when we will have an opportunity for a couple of you to get a prize for hanging out with me.
  2. Thank you to everyone on the call for taking time and submitting questions. My contact info is on this slide, contact me with any additional questions.