Is WHAT you stock a marketing decision?
- Thread starter ed.brooks
- Start date
ZMOT is the newest edition. Dumb it down from the 5 step shopping process consumers have always used to a 3 step process, then ADD a new 'step' that's always been there and BOOM - you're a genius. Gotta love Google
- Aug 13, 2009
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- Walt
@Joe, right on the money as usual. More of the right cars at the right prices = more leads. As far as used is concerned we know our inventory is out absolute best marketing tool.
No doubt Walt! The one caveat is, even the right cars at the right prices aren't enough. They still need to be merchandised correctly. When all of that falls into place, you'll have more traffic - leads and walk-ins both!
- Apr 6, 2009
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- Mitch
@Joe, I love that you took it to ZMOT and FMOT. It was at that point that I had a mini ah ha moment and really understood the thread better. ZMOT, FMOT and SMOT are getting a lot of lip service lately, for good reason.
I think Ed is right, and that this is one of those fundamentals you have to get right, and it fits in well as the steroids (if not a strong fitness routine) of ZMOT. Going back to the "what are dealers really selling" article, that too makes sense and fits in well with the FMOT, and may have some game in the advertising world but that's the kind of stuff you can't TELL people you do because they won't believe it. The marketing benefits of that are a side effect of running a great business.
I think Ed is right, and that this is one of those fundamentals you have to get right, and it fits in well as the steroids (if not a strong fitness routine) of ZMOT. Going back to the "what are dealers really selling" article, that too makes sense and fits in well with the FMOT, and may have some game in the advertising world but that's the kind of stuff you can't TELL people you do because they won't believe it. The marketing benefits of that are a side effect of running a great business.
- May 1, 2006
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- Alex
I have a crazy question: where do operations fit into this stocking decision?
- Can my shop work on this car?
- Will the shop rape me with the RO?
- Will my people sell this car?
- How have I sold these before in the past?
- Dec 2, 2009
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- John
That's actually a GREAT question. I know there are LOTS of cars we'd like to get on the lot, save for the "We'll never get it through the shop" equation.
I know in our store, every unit has to qualify for at least one of our warranties. You might be surprised at how differently Techs and Sales interpret warranty requirements.
Not a crazy question at all. All of the above need to be taken into account. It's one of the reason why our system provides multiple suggestions, so those (more subjective) factors can be taken into account.
The last question "How have I sold these before in the past?" is factored into our system, but whether you're using analytics or your 'gut', I'd caution a dealer not to give it too much weight. The market is constantly changing. What worked 6 months ago or even 3, may not work today. That's why we look only at the past 6 weeks. The other thing to consider is just because you've never tried a vehicle, doesn't mean you shouldn't. If the vehicle is selling in your market, is getting lots of searches and VDPs, isn't over-supplied and can be bought right, fits with your brand and dealership image - why wouldn't you want to stock it?
- Apr 6, 2009
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- Mitch
The operations decisions fit in at the genesis of all stocking decisions, it's what used car managers are employed for. Does the marketing focused question become, (already is)
- If my shop can't work on this car can I outsource, absorb the extra cost then competitively market this car at a margin everyone can live with?
- Will the shop bend me over to a point where I can't market this car competitively?
- Will my people be able to handle the extra traffic and leads? Then maybe: How can I prepare them?
- Is this a good opportunity in my wheel house or will I have to stretch my people to score on this one?
I know this is simply restating questions all used car managers already ask themselves. (And I might not have understood your question Alex).
I really like the new tools that make the used car managers job more black and white, with the biggest shades of grey on the operational efficiencies. It's making "John's used car corner" less and less attractive!
- If my shop can't work on this car can I outsource, absorb the extra cost then competitively market this car at a margin everyone can live with?
- Will the shop bend me over to a point where I can't market this car competitively?
- Will my people be able to handle the extra traffic and leads? Then maybe: How can I prepare them?
- Is this a good opportunity in my wheel house or will I have to stretch my people to score on this one?
I know this is simply restating questions all used car managers already ask themselves. (And I might not have understood your question Alex).
I really like the new tools that make the used car managers job more black and white, with the biggest shades of grey on the operational efficiencies. It's making "John's used car corner" less and less attractive!
- Apr 7, 2009
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- Joe
Industry Observation: Look at the box that franchised car dealers slam themselves into!
"The Perverted Business Challenges of the Franchised Dealer"
- Can my shop work on this car?
- Will the shop rape me with the RO?
- Will my people sell this car?
- How have I sold these before in the past?
As an founder/owner/survivor of 3 different start ups, NOTHING has puzzled me more than the bizarre internal problems car dealer managers wrestle with.
- In the real world, no franchise umbrella protects you.
- In the real world, department heads are responsible for their departments performance AND for the FINAL PRODUCT they help create.
- In the real world, many a small business fights against competition that no car dealer has ever had to fight.
Imagine if GM, Ford and Audi having different VEHICLE COSTS based on YOUR VOLUME. The entire game would change over night. GIANT retailers would come in. You'd be fighting names like Walmart, Target, Best Buy, HomeDepot and CostCo. AutoNation (and other large players) would go in a buying binge to "get large or die". Independent dealers would form co-ops to pool purchases.
This is the world I come from. It's you vs the big box stores, and they RETAIL items for less than your factory direct net/net dealer cost sheet. In this environment, all the walls come down and you become known as a specialist, or, you die.
</rant>
