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Avoid the Average Inventory Metrics - Research

Discussion in 'Vehicle Merchandising & Inventory Software' started by Jeff Kershner, Oct 31, 2018.

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  1. Jeff Kershner

    Jeff Kershner
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    DealerRefresh & Mercedes-Benz of Hagerstown
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    With technology we are provided a significant amount of market data that allows us to make more educated decisions based on our local regions and markets. But all to often, in order to comprehend and make use of the data, the math behind it results in highlighting and utilizing simple averages, but here are just TOO MANY variables to manage your inventory and base decisions on AVERAGES.

    The only time I consider the average is if and when it highlights the positive or helps cushion the negative. ;-) Averages rarely provide you with THE REAL ANSWER. How does one take immediate action on the average? You can't.

    Our good friend @chad.bockius@chad.bockius at CarStory has released a quick read whitepaper on how using averages can be dangerous when it comes to inventory management. It provides some clear examples on why and how dealers should avoid the averages and start relying on solutions that take a more intelligent approach while taking into account every variable available.

    You'll need to share a few fields of information before downloading. No complicated science here but it's a quick insightful read that dives into the most common and misguided number used by our industry – Market Day Supply - https://dlrfr.sh/2JrS7j8
     
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  3. chad.bockius

    chad.bockius
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    I presented on this topic last week at Autovate. Here is the full video for those that couldn't attend.
     
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  4. Jeff Kershner

    Jeff Kershner
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    Jeff
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    DealerRefresh & Mercedes-Benz of Hagerstown
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    Thanks for sharing Chad!! I'll be sure to watch this ASAP. I'll get this over to the DR blog as well.

    @CliffBanks@CliffBanks needs to do a better job at promoting this conference. I really wanted to attend this year but forgot all about it. FYI - I've always and will continue to extended DR real-estate to help promote it.
     
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  5. Tallcool1

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    Very good presentation @chad.bockius@chad.bockius . I have experienced a great deal of frustration when it comes to the averages. As you showed, there is always a story behind the numbers...the numbers in and of themselves are not the story.
     
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