Strap a Rocket to Your Pre-Owned Profit Center! Getting Started!
Strap a Rocket to Your Pre-Owned Profit Center! Getting Started! The Journey to Increased Used Vehicle Sales and Profits in 2010 and Beyond A DealersEdge® WebCast with Steve Nickelsen CEO of Nickelsen Partners LLC Thursday, December 3rd 1 p.m. Eastern Introduction by Mr. Mike Bowers Steve Nickelsen, CEO Page 2 1. Strategy 2. Inventory 3. Finding Cars 4. Buying 5. Tracking 6. Service 7. Pricing 8. Marketing 9. Selling 10. Disposal The 10 building blocks in this series Page 3 1. Strategy 2. Inventory 3. Finding Cars 4. Buying 5. Tracking 6. Service 7. Pricing 8. Marketing 9. Selling 10. Disposal In Today’s Webinar The Strategy, the Inventory, and Finding Cars ∎ Selling more than you’d think possible: a variety of strategies ∎ What should my inventory look like? ∎ Where do I find those vehicles? Page 4 Selling More than You’d Think… ∎ ∎ ∎ ∎ ∎ Outside of Lansing, Michigan Woodhouse Auto Family (Nebraska) Finish Line Ford (Peoria, Illinois) Blue Knob Auto (Duncansville, Pennsylvania) TexasDirect (Stafford, Texas) Page 5 Selling More than You’d Think… What’s on the Internet Single Point Domestic Lansing, MI ■ ■ ■ ■ ■ 882 used vehicles 65% priced $5,000 to $15,000 36% over 60 days old 94% average price to market 96 market days supply Strategy and Ideas ■ ■ ■ Good people Lots of inventory Take “anything in on trade; birds, houses, boats, etc. Page 6 Selling More than You’d Think… What’s on the Internet ■ ■ Woodhouse Ford-Chrysler-Jeep-Dodge Blair, NE ■ ■ ■ 469 used vehicles 28% priced $5,000 to $15,000 18% over 60 days old 117% average price to market 93 market days supply Strategy and Ideas ■ ■ Sells 3-400 in remote Nebraska Segment focus: 47% of inventory is large trucks (only 15% of market) Page 7 Selling More than You’d Think… What’s on the Internet ■ ■ Finish Line Ford Peoria, IL ■ ■ ■ 522 used vehicles 29% priced $5,000 to $15,000 18% over 60 days old 91% average price to market 133 market days supply Strategy and Ideas ■ ■ ■ ■ ■ Sells 300+ a month Low pricing to maximize traffic and sales Sales people paid salary with volume bonuses Focus is on “processes” Website has moving pictures and creative audio Page 8 Selling More than You’d Think… What’s on the Internet ■ ■ Blue Knob Auto Sales Duncansville, PA ■ ■ ■ 849 used vehicles 34% priced $5,000 to $15,000 16% over 60 days old 87% average price to market 113 market days supply Strategy and Ideas ■ ■ ■ ■ ■ Sells 600+ a month Pure used cars – no new franchise Huge selection, focus on recent models One-price, very low prices, no-haggle selling Good value outweighs lackluster service (3.5/5 stars for 74 reviews) Page 9 Blue Knob Auto’s Strategy Is Internally Consistent ∎ Mission Statement (from their website) – Blue Knob Auto Sales goal is to provide quality used vehicles at affordable prices to our customers. – We strive to make the sales experience as professional and stress free as possible. – Our "one price" strategy will maximize our sales potential and enable Blue Knob Auto Sales to be an industry leader in our marketplace. Page 10 Selling More than You’d Think… What’s on the Internet ■ ■ Texas Direct Stafford, TX ■ ■ ■ 1,506 used vehicles 29% priced $5,000 to $15,000 33% over 60 days old 100% average price to market 83 market days supply Strategy and Ideas ■ ■ ■ ■ ■ Aim to be 100% Internet and phone for entire sales process World’s largest eBay Motors dealer Independent; no new-vehicle franchise Buy and sell worldwide from Texas location Streamlined, unconventional approach to stocking, selling, operations Page 11 What Would You See at Texas Direct? ∎ ∎ Company founders who came out of the software business and didn’t know – or care – much about the car business when they started Most purchases completed on-line or on the phone – Very few customers on-site – An impressive phone bank to handle customer inquiries ∎ ∎ A huge inventory, with many of those vehicles sold and being prepared for delivery to customers Streamlined processes aimed at getting vehicles bought, prepped, sold, and delivered as quickly and cheaply as possible – A sophisticated custom-built software system to handle the entire operations and selling process Page 12 Keys to Success ∎ Be fast – “Aging inventory can kill you” – “Most people hold their losers and sell their winners…. We try and do the opposite.” – “Rather than waiting two or three months not to lose $4,000 on a mistake that we made, we’ll take that hit right away and try and make it up over the next two months with more prudent purchases.” – “Of the units we sell, maybe 10% of them are losers.” ∎ Always be buying – “If you have a lot of inventory you can’t get rid of, dump it on the market and buy something that you can sell and make money on.” ∎ Compound your assets – Three main kinds of assets: real estate, cash, and inventory – Roll the profits back into buying more assets that generate more profits Source: Zero to Sixty Million and Beyond: Under the Hood of the World’s Largest eBay Motors Dealership, Mike Welch and Rick Williams, pages 103-106. Page 13 The Importance of Training ∎ “The first thing that happens when we hire on a new porter or other employee is show them exactly how we want something cleaned, how we want things moved, how they should approach their day, etc. We also train all our vendors to use our software….” Source: Zero to Sixty Million and Beyond: Under the Hood of the World’s Largest eBay Motors Dealership, Mike Welch and Rick Williams, page 136. Page 14 Applying “Lean” Principles ∎ Lean = Toyota operating principles – Eliminate waste of all types: waiting, inventory, rework, unnecessary motion, etc. ∎ Examples at Texas Direct – Checking cars in ◆ Used to just be dropped in any open spot ◆ Special parking zone for new arrivals that also serves as cleaning queue – Detailing cars ◆ Moved car from arrival spot to detailing area, no clear priorities ◆ Flow is new-arrival zone to detailing to photo booth to test-drive area, with each zone flowing into the next and with clear priorities managed by line leader Source: Zero to Sixty Million and Beyond: Under the Hood of the World’s Largest eBay Motors Dealership, Mike Welch and Rick Williams, pages 110-116. Page 15 Summary: What’s Driving These New Strategies? New Ideas New Tools Changing Market Page 16 Summary: What’s Driving These New Strategies? New Ideas ■ ■ New Tools ■ ■ Changing Market ■ ■ ■ More Internet research More Internet shopping Some Internet buying Harder to get financing More restrictions on financing Traditional marketing becoming less effective New channels for buying and selling Page 17 Summary: What’s Driving These New Strategies? ■ ■ ■ ■ ■ AppraisalPRO DealerTrack IO FirstLook vAuto Others New Ideas ■ ■ New Tools ■ ■ Changing Market ■ ■ ■ More Internet research More Internet shopping Some Internet buying Harder to get financing More restrictions on financing Traditional marketing becoming less effective New channels for buying and selling Page 18 Summary: What’s Driving These New Strategies? ■ ■ ■ ■ ■ ■ ■ AppraisalPRO DealerTrack IO FirstLook vAuto Others New Ideas ■ Focus on velocity, not just gross New strategies and tactics Changing compensation to drive better behaviors; more affordable ■ ■ New Tools ■ ■ Changing Market ■ ■ ■ More Internet research More Internet shopping Some Internet buying Harder to get financing More restrictions on financing Traditional marketing becoming less effective New channels for buying and selling Page 19 So, What’s Possible at Your Store? ∎ The key is NOT to focus on what you’ve done in the past. – As you just saw, several stores are selling above what you might think. ∎ Things to consider – Practices and tools right now: traditional, top 35%, or top 1%? – Population within 20-30 minutes? – Knowledgeable competition? – Available capital? – Internet marketing vs. asphalt? Page 20 Forecast and Plan Your Financial Results ∎ A good financial pro forma will help you determine if it is “worth it”. Page 21 Forecast and Plan Your Financial Results ∎ A good financial pro forma will help you determine if it is “worth it”. Page 22 Here Are the Kinds of Things You’ll Need to Think About in Building That Pro Forma ∎ ∎ How many unit sales are we targeting? What kinds of grosses can we achieve? – Front-end – F&I – Parts, Service, and Body Shop for reconditioning ∎ What kind of inventory will we need to support those sales? – Units and dollars ∎ What kind of staffing will we need to support those sales? – Sales – Buyers, planners, and other support – Management ∎ What will we need to spend on software or other resources? Page 23 So, What’s Possible at Your Dealership? ∎ ∎ ∎ ∎ Capital and inventory size Organization and staffing Processes and tools Level of commitment Page 24 Capital and Inventory: How Much Can You Afford to Sell? ∎ ∎ You can’t sell what you don’t stock. Your average investment cost per unit? – $1 million buys 67 units at $15,000 each. – The same capital buys 100 units at $10,000 each. ∎ How fast can you turn the inventory? – 100 units in inventory can support 50 units/month with a 60-day turn. – The same inventory can support 100 units/month with a 30-day turn. – The same inventory can support 150 units/month with a 20-day turn. ∎ So, $1 million of inventory can support between 34 and 150 units/month. That’s a range of more than 4:1. Page 25 Organization and Staffing: What Are You Staffed to Sell? ∎ ∎ You have to have a sales force of sufficient size and skills. How many average sales per salesperson per month? – 10 salespeople can sell 100 units/month at an average of 10/person. – It takes 12 people if they average only 8 units. ∎ ∎ ∎ What is your target for unit sales, new plus used? How many salespeople do you have? If you divide your unit sales target by your number of salespeople, what is the average target sales per person? – Do you have enough staff to sell everything you want to? Page 26 Organization and Staffing: What Are You Staffed to Sell? ∎ ∎ Are you able to attract a sales force? Crestmont Used Car Superstore – – – – – Started from scratch Advertised on Craigslist 85 applied to the ad The GM called all of them Ran 26 through an on-line personality assessment – Offered 7 jobs – Six accepted – Two are in the top 20% of ALL Crestmont salespeople in their first 3 weeks; competing with 15+ year veterans Page 27 Crestmont’s Ad for Used-Vehicle Salespeople Crestmont Automotive Group has been growing and due to our increased business levels, we need more people to join our team. We are looking for our 3rd class of Relationship Specialists to start with us on November 23, 2009. Openings are at Crestmont Hyundai in Brunswick, Crestmont Cadillac, and the Crestmont Pre-Owned Superstore in Beachwood. Successful candidates will be positive, outgoing, customer oriented, and wear a smile all day long. The most important thing is that you have to be great at following a process and making friends with people you’ve never met before. We are NOT looking for people who “typical sellers” or “fast talkers”. Please do not apply if you have experience at another automobile dealership. Salary of $2,000 a month with upper income potential of $45,000 per year with benefits available. If you want to learn more please email your resume and a note on “why you” to _____ . EOE Page 28 Processes and Tools: Do You Have the Capability to Execute? ∎ ∎ How good are your processes today? Do you have the tools you need to execute those processes? – Effectiveness: Doing the right things and getting the right results – Consistency: Doing things the same way every time – Efficiency: Doing things in ways that don’t require too much staff, or money, or time ∎ Your growth opportunity depends on the gap between your processes today and what they could be. Page 29 Building the Work Plan ∎ Develop your financial pro forma and key assumptions – Staffing – Inventory – Upfront actions and investment ∎ Do a “gap” analysis: What actions do we need to take? – – – – ∎ Add, train, replace staff? Select, implement, and train on new software? Design, implement, and refine new processes? Invest in new office capabilities, facility refinements, or capabilities (e.g., photo booth, sourcing work area)? Build the work plan to close those gaps – Tasks, people responsible, due dates – Monitor actions against that plan Page 30 Getting from Here to There ∎ Sales may have to ramp up, not jump up. – It takes time to implement new approaches. – Cleaning out old inventory can take time. – Building up capital to support bigger inventories can take time. – If you need to add staff, that recruiting and training takes time. – Increasing velocity without accepting too high wholesale losses takes time. ∎ As you change, you won’t get everything exactly right the first time. The learning and improving process should go on forever. Page 31 1. Strategy 2. Inventory 3. Finding Cars 4. Buying 5. Tracking 6. Service 7. Pricing 8. Marketing 9. Selling 10. Disposal Planning Your Inventory ∎ ∎ ∎ ∎ ∎ ∎ ∎ ∎ Four approaches The right amount The right mix The right price Considering past ROI Sets As-is vehicles Don’t buy without an exit strategy Page 32 Approaches to Managing Used-Vehicle Inventory Traditional Stick to my brand and the vehicles I know, and buy what looks good at auction; use rules of thumb Page 33 Approaches to Managing Used-Vehicle Inventory Traditional Classic Sets Stick to my brand and the vehicles I know, and buy what looks good at auction; use rules of thumb Choose a few “focus” models to stock in depth, with a clear “price walk” up from the advertised price leader to nicer and higher-priced similar vehicles Page 34 Approaches to Managing Used-Vehicle Inventory Traditional Classic Sets Stick to my brand and the vehicles I know, and buy what looks good at auction; use rules of thumb Choose a few “focus” models to stock in depth, with a clear “price walk” up from the advertised price leader to nicer and higher-priced similar vehicles Pure DealerTrack/AAX Focus on “core inventory” vehicles that dealer has sold in the past with high grosses and good turns (or that nearby dealers have done well with) Page 35 Approaches to Managing Used-Vehicle Inventory Traditional Classic Sets Stick to my brand and the vehicles I know, and buy what looks good at auction; use rules of thumb Choose a few “focus” models to stock in depth, with a clear “price walk” up from the advertised price leader to nicer and higher-priced similar vehicles Pure DealerTrack/AAX Pure vAuto Focus on “core inventory” vehicles that dealer has sold in the past with high grosses and good turns (or that nearby dealers have done well with) Every unit stands alone on market days’ supply and cost to market, with the market measured by Internet advertising and pricing Page 36 The Right Amount Units Needed? Dollar Investment Average $/Unit Page 37 The Right Amount ■ Units Needed? ■ ■ Dollar Investment What is your sales target? What turns can you expect to achieve? How many units does that mean that you need? Average $/Unit Page 38 The Right Amount ■ Units Needed? ■ ■ Dollar Investment ■ What is your sales target? What turns can you expect to achieve? How many units does that mean that you need? Average $/Unit What can you afford to stock? Page 39 The Right Amount ■ Units Needed? ■ ■ Dollar Investment ■ What can you afford to stock? What is your sales target? What turns can you expect to achieve? How many units does that mean that you need? Average $/Unit ■ ■ What price points best suit your market? What cost/unit best matches your dollar budget and unit target? Page 40 The Right “Mix” - What Should Your Target Inventory Be? ∎ Vehicles people want – In your target market geography – Adjusted to reflect your target customers (luxury vs. mainstream) – Adjusted to reflect nearby competitors – Adjusted to reflect intended specialization (e.g., large trucks) ∎ ∎ Bought so you can retail them in today's "efficient market” and still make an acceptable gross profit Reconditioning that makes sense – Determine your “rules” Page 41 Planning the Right Mix Phased timing Page 42 Planning the Right Mix Phased timing How many? Page 43 Planning the Right Mix Phased timing How many? Target average cost Page 44 Planning the Right Mix Phased timing How many? Target average cost Brand mix – not just your own franchise any more! Page 45 Phased timing Planning the Right Mix How many? Target average cost Brand mix – not just your own franchise any more! Those trades we used to wholesale Page 46 Planning the Right Mix – and Growth Page 47 The Right Price ∎ ∎ Determine your strategy Turn vs. gross profit – or both – Where is the gross? ◆ New vs. aged units – Faster does not ALWAYS mean no gross Page 48 Sophisticated Tools Can Help You Drill Down from the Inventory Matrix to More Specifics ∎ This example is from vAuto. Market vs. Inventory Mix by Vehicle Segment Market vs. Inventory Mix by Brand or Price Determining the Price Metrics ∎ Here is how vAuto gives you market data… Page 50 Determining the Model Mix ∎ Here is how vAuto gives you market data… Page 51 Another Approach Focuses on Past ROI When Selecting Vehicles to Buy ∎ ∎ This information most easily comes from a tool like DealerTrack/AAX. Alternatively, you can also get the data from your DMS. Page 52 What About “Sets”? ∎ Groups of similar vehicles bought and merchandised together, with a price “walk” from low to high – Same model – Similar vehicles – No more than 20% of inventory ∎ Benefits – Low-priced “lead” vehicles to advertise and show – Customers can find the right price-value match for them – Potential for easier selling and higher gross profits Page 53 How Do Sets Work? ∎ Create a “lead” car – Low cost – Not nice – Won’t sell ∎ ∎ ∎ ∎ Have “step up” vehicles next to it Have higher gross profit vehicles close Vehicles must be similar Sale consultants must to trained in the “set” selling process Page 54 How Do Sets Work? ∎ ∎ ∎ Todd Stephens did sets at a Chevrolet store in Evansville – by accident. He bought a Hummer for $5,000 behind the average selling price, only to find out that it had a stick shift. The rest is “success”. Page 55 What About the “As-Is” Segment? ∎ Much lower price point (under $5,000!) – So lower inventory risk and higher GP % of sales ∎ ∎ Different competition (independent dealers, not franchised dealers) Different rules – Clear distinction between regular and as-is vehicles – Extra care to avoid misrepresentation – Different vision of the “right” product ∎ Financing challenges Page 56 An “As-Is Corral” Can Separate Vehicles Clear Signage for the As-Is Corral Helps Avoid Misunderstandings Altered Sales Consultant Approach for As-Is ∎ Training for selling As-Is vehicles – Vehicles are not inspected – No warranty expressed or implied – Encouraged customers to have the vehicles inspected off the premises ∎ Pay plan – Flat compensation based upon vehicle selling price ◆ >$ 1,000 = $100 ◆ >$ 2,500 = $150 Re-Engineered Paperwork for As-Is Vehicles ∎ ∎ Different colored stock folder Scaled down inspection – not shown to the customer – Road test ◆ Engine performance ◆ Transmission operation ◆ Transmission shift indicator ◆ Brake operation Setting Standards for Inventory Purchases and Aging Management ∎ These metrics were developed with one of our clients who uses vAuto to help them better buy and manage their inventory. Be lowest Page 61 Don’t Buy Without an Exit Strategy ∎ ∎ ∎ ∎ ∎ How will we price and merchandise this vehicle? If it doesn’t sell in two weeks, what will we do? If it is still on the lot in 30 days, what will we do? What happens after 45 days if it hasn’t sold? What about after 60 days? Nearly every car can and should be retailed. Page 62 Don’t Buy Without an Exit Strategy Page 63 Don’t Buy Without an Exit Strategy Page 64 1. Strategy 2. Inventory 3. Finding Cars 4. Buying 5. Tracking 6. Service 7. Pricing 8. Marketing 9. Selling 10. Disposal Finding Vehicles ■ ■ Evolution in finding vehicles Lots of sources – – – – – – ■ Overview “We Buy Cars” Service lane Other dealers Private owners Your database Modernizing and centralizing sourcing Page 65 Expanding Your Thinking on Vehicle Sources Page 66 Expanding Your Thinking on Vehicle Sources Page 67 Finding Used Cars Is Evolving Traditional ■ Rely on auctions and trades only ■ Used-car manager plus outside buyers ■ Every store for itself ■ Very loose processes around buy lists – “That’s too expensive” – “I can’t go home empty-handed” Page 68 Finding Used Cars Is Evolving Traditional ■ Rely on auctions and trades only ■ Used-car manager plus outside buyers ■ Every store for itself ■ Very loose processes around buy lists – “That’s too expensive” – “I can’t go home empty-handed” Today’s Top 35% ■ Rely on auctions and trades, plus maybe some “we buy cars” ■ Used-car manager plus outside buyers ■ Every store for itself ■ Stronger processes – Buy lists that are mostly data-driven – Pretty good compliance with buy lists Page 69 Finding Used Cars Is Evolving Traditional ■ Rely on auctions and trades only ■ Used-car manager plus outside buyers ■ Every store for itself ■ Very loose processes around buy lists – “That’s too expensive” – “I can’t go home empty-handed” Today’s Top 35% ■ ■ Rely on auctions and trades, plus maybe some “we buy cars” Used-car manager plus outside buyers ■ Every store for itself ■ Stronger processes – Buy lists that are mostly data-driven – Pretty good compliance with buy lists Today’s Top 1% ■ Auctions and trades, plus supplemental sources ■ Centralized sourcing and appraisal ■ Data person creates buy lists with the GM and the UCM and finds many vehicles on-line ■ Buyers go to auction ■ Heavily data-driven processes with very tight compliance Page 70 Lots of Sources for Used Vehicles ∎ ∎ ∎ ∎ ∎ ∎ ∎ ∎ Auctions – lots of vehicles, but often highest cost relative to market Trades – good high-volume option, but dependent on strength of new-vehicle sales “We Buy Cars” Service lane Other dealers Private owners Your database Large dealer group auctions Page 71 Lots of Sources for Used Vehicles: Auctions ∎ Lots of vehicles, but often highest cost relative to market – – – – – – – – ∎ Smart Auction Manheim Adesa Columbus Auto Fair Montpelier Erie – under $10k OVE Others Sometimes the “buy it now” price in the morning is less than the than the 2:30 buying flurry. Page 72 Lots of Sources for Used Vehicles: Trades ∎ Good high-volume option, but dependent on strength of newvehicle sales – Watch your “look to book” ◆ Do you pay more at auctions that you do for trade-ins? – Wholesale loss is not the ONLY measurement ◆ Think about “throughput” profit: Future service, parts, body shop, market share, and another apostle! ∎ Driving the trade with the prospect will increase your “buy” percentages Page 73 Lots of Sources for Used Vehicles: “We Buy Cars” ∎ ∎ ∎ ∎ ∎ CarMax Kelley Automotive Group Sam Swope Auto Group Mike Patton Auto Family Crestmont Auto Group Page 74 “We Buy Cars” – CarMax Car Buying Center Page 75 “We Buy Cars” – CarMax Car Buying Center Page 76 Publicizing “We Buy Cars” Page 77 Publicizing “We Buy Cars” ∎ These examples are from Mike Patton Auto Family (Lagrange, GA). Page 78 This Campaign Qualified as a Public Service Announcement! ∎ ∎ TV promotion for Swope’s “We Buy Cars” campaign Local TV talent interviewed Cary Donovan, Director of Used Vehicle Operations, for a Public Service Announcement Page 79 Lots of Sources for Used Vehicles: Service Lane ∎ Salesperson saying “hi” in the service lane – Beford Ford (Southpoint, OH) ∎ Letters for free appraisals attached to repair orders – Kelley Auto Group buys 10+ units/month this way (Fort Wayne, IN). – The first 20 letters got 3 interviews at Crestmont Cadillac (Beachwood, OH). ∎ Alternative to offer when price estimates for repairs are high – Every RO has an offer to buy. Page 80 Schedule Specific Salespeople to Be in Service in the Morning Page 81 You Can Find Great Vehicles in Your Service Drive ∎ ∎ ∎ Offer free appraisals to Service customers Focus on desirable used vehicles, or any customer who might be a good prospect Have salespeople follow up Page 82 Lots of Sources for Used Vehicles ∎ Where cars that you want are located… Page 83 Lots of Sources for Used Vehicles: Other Dealers ∎ ∎ ∎ ∎ ∎ Location and contact information Days on the Internet Odometer VIN CarFax or AutoCheck Page 84 Buying from Other Dealers: One Successful Technique ∎ ∎ Start by developing the strategic buy list Create Excel spreadsheet for each vehicle – Target vehicles at dealers who do not sell that brand of new vehicles – Target vehicles that have been in stock at the other dealer for between 45 and 160 days ∎ Call dealers and ask if they would consider selling the vehicle – Avoid referring to this as “wholesale” ∎ ∎ Also use proxy bids in OVE Negotiate purchase price Page 85 Lots of Sources for Used Vehicles ∎ Other dealers and private owners – Here’s the AutoTrader listings within 25 miles of Akron, Ohio – 373 UNDER $10,000 Page 86 Lots of Sources for Used Vehicles ∎ Other dealers and private owners – Here’s the Cars.com listings within 30 miles of Akron, Ohio – 98 UNDER $10,000 Page 87 Craigslist.com Can Be a Source of Vehicles Page 88 Use Your Database to Find Vehicles and Prospects ∎ ∎ ∎ Salespeople can contact people in your database who are driving vehicles you would like to own. Prospecting should be “a part of the job”. Monitor daily and coach the gaps. Page 89 Lease Expirations Are Low-Hanging Fruit Page 90 Lots of Sources for Used Vehicles ∎ ∎ ∎ ∎ ∎ ∎ ∎ ∎ Auctions – lots of vehicles, but often highest cost relative to market Trades – good high-volume option, but dependent on strength of newvehicle sales “We Buy Cars” Service lane Other dealers Private sellers Your database Large dealer groups Page 91 Cutting-Edge Dealer Groups Are Modernizing and Centralizing Used-Vehicle Sourcing ∎ ∎ ∎ ∎ ∎ ∎ Sourcing Transportation Reconditioning tracking Reconditioning Vehicle “folder” preparation ∎ ∎ ∎ Skilled, focused resources Economies of scale Avoiding bidding against same-group stores for vehicles Getting vehicles to the “right” store in the group if they aren’t selling Page 92 One Group’s Centralized Sourcing Department Page 93 Doing Research From Successful Dealers Can Save Time And Money Page 94 1. Strategy 2. Inventory 3. Finding Cars 4. Buying 5. Tracking 6. Service 7. Pricing 8. Marketing 9. Selling 10. Disposal The 10 building blocks in this series In the next webinar, we’ll cover - Buying - Tracking - Service Page 95 Thanks for listening, and congratulations on your desire to learn! For any additional questions, please email me at: snickelsen@nickelsenpartners.com or my cell is 330.665.9469 Steve Nickelsen, CEO www.nickelsenpartners.com Page 96
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