Inventory Shortages For Import Dealers. What have you learned from it ?

[danoneil]

I work for a Honda dealer. The last 3 months has been an interesting time to sell Honda's because of the strategy's needed to sell cars, but not sell out.

Normally we have 450 cars in stock. Right now we have 130. So it's been a tough June.

I've learned a great deal with this unique situation. You need to sell cars, but at the same time if you sell cheap and deplete your inventory, you don't have cars to sell next month. Honda has dictated our selling prices by not offering dealer cash. Cars from Japan are in very short supply.

I am curious to get some feedback from some other ISM's or sales managers that work for a Import store such as Honda,Toyota and Nissan.

What you have learned from this shortage of inventory situation ?

 

[john.quinn]

Hi Dan -- I've learned we give-up gross too easily in the good-times. Need to concentrate on the blocking and tackling (basics) especially when the door's swinging.

 

[jimbell]

Sell from stock and sticker is quicker. You have to hold your ground on the pricing and not give it up. We are in the same boat and normally keep about 180 units on the ground and we have 79 as of this morning. Dealers are lying about internet pricing. They may throw a low-ball price out there, but they can't get the car. We have sold several customers a car at sticker when they had a lower price elsewhere, but they couldn't get the car and we had it. Guess the consumer will pony up if they want it enough and you sell yourself, the product, and the dealership.

 

[danoneil]

I spoke to a Honda dealer that never adds accessories to the vehicle. However that has changed due to short inventory. We needed a Odyssey EXL. This dealer has the van, but it has roof rails, all season mats etc... So we explain to the customer the accessories added, they still buy. He told me that some dealers will not take their inventory because of all the add on's.

We sold 98 new Honda's and a $1900 Front end. We are holding out for gross, no question.