Top Tips For Staying on Top of Aged Stock
- January 18, 2018
- Posted by: Kari Jones
- Category: Tips For Dealers
As every car dealer knows, having a depreciating vehicle sat on the forecourt is harmful for profitability, but keeping track of aged stock is easier said than done.
For every car that becomes a part of your inventory, you should have a process in place so that you know when to take action. This should increase efficiency and reduce the risk of losses.
Order Your Stock by Age
You should have a record of all your stock, organised by aged status, so that you can easily see which vehicles need to be prioritised.
Measure Every Element
Take note of how long it takes to get each vehicle onto your forecourt and your website after purchase. Measuring each element of the sales process will help to make you aware of where time can be saved, so that you can give your cars a better opportunity on the forecourt.
Stock turn will vary between dealers as a result of factors like the number of customers the dealership receives and the number of vehicles they have, but 60 days is widely used as a stock age policy. As part of your process, it is a good idea to set parameters for aged inventory, according to your own stock turn.
You should firstly determine the maximum amount of days it is acceptable for a vehicle to be on your forecourt without being sold, based on your average stock turn. Then, establish points at which action needs to be taken. For example, halfway through your maximum stock turn, you may want to move vehicles to a different spot on your lot, and then you might decide to set another parameter later in the aging period which triggers another action, like price checks.
With Click Dealer’s aged stock management tool, you can set up automatic alerts specific to your own business model, which makes the process more efficient and ensures that you have the best chance of keeping on top of aged stock.