It’s no secret that managing vehicle stock can be a struggle. But it doesn’t have to be. There are ways that your dealership can streamline Inventory Management and accelerate growth quickly and cost effectively in 2023.
EasyCars has put together 5 Tips for Managing Car Inventory in 2023.
Let’s get into it.
1. Understand Market Trends
First and foremost, to have strong car inventory management, you need to sell vehicles that customers want to buy. There is no point having different vehicles in stock if they aren’t what customers are asking for. The longer a vehicle sits in stock, the more challenging the process gets and ultimately the more money your dealership will lose.
Before you begin purchasing cars to sell at your dealership it is vital that you research the market and understand what cars customers are buying and most importantly at what price point. Based on the data, try to find ways to source those cars at a healthy price to deliver a strong return!
2. Pricing is the Key
What is the key deciding factor when it comes to buying a car? The price. The price that your dealership sells vehicles for will play a huge role in your inventory management success. To have strong inventory management it is important that your dealership finds and implements the right price point for your vehicles.
Before you source a vehicle to sell, it is important that you research and understand how much a vehicle is worth, how much you may be able to make off a sale in the current market and most importantly what your competitors are charging for similar vehicles.
Once you know that, find a strong price point that reflects the environment and is competitive for both your dealership and the customer. The better your dealership’s pricing strategy is, the easier it will be to sell cars and most importantly the easier inventory management will become!
3. Find Reliable Suppliers
The biggest challenge still plaguing dealers around the world is stock shortages. The last thing that your dealership wants is to have no vehicles in stock. No vehicles mean no revenue!
To be successful in the Australian Automotive Industry it is important that you find reliable suppliers that can provide you with consistent vehicles to sell. Having a reliable supplier in place will give your dealership the ability to keep stock updated and keep customers coming through the door 7 days a week, 365 days a year!
4. Stock Different Vehicle Types
What one buyer will want will differ from the next. A mistake that so many dealerships make is only stocking one vehicle type. The problem with doing this is you limit yourself to that niche. If that is something that you want to do go right ahead, but it will limit your growth potential and the quantity of customers you can target.
A key fundamental to having strong inventory management is having a diversified product range, in this case stocking various types of motor vehicles. To capture the largest amount of interested buyers it is important that your dealership stocks a variety of different vehicle types like 4X4 Utes, SUVs, Hatchbacks, Sedans and more. This will make your dealership relevant for all types of vehicle buyers, which will increase your sales potential.
5. Implement Automotive Management Solutions
Let’s face it, managing vehicle inventory is a struggle at the best of times. As a motor dealer your number one priority is to focus on closing sales not managing inventory. The best way to effectively manage your dealership’s vehicle stock is by implementing an automotive solution like a Dealer Management System (DMS).
The benefit of implementing a Dealer Management System is it completely automates stock management and many other daily dealerships tasks. In the click of a button your dealership can see how long vehicles have been in stock for, how many enquiries an individual vehicle has received, how much profit you will make from a vehicle sale and more.
Using a Dealer Management System will give your dealership the power to make more strategic purchasing and management decisions that accelerate growth and profitability.
Related Article: Why Your Dealership Needs A Dealer Management System.
There’s a lot more that goes into having strong car inventory management than what might be thought. To have strong vehicle inventory management your dealership needs to implement the right processes and adapt to both customer and economic changes. The 5 tips presented are a few proven ways your dealership can simplify vehicle inventory management in 2023 and beyond.
We hope you enjoyed reading this article. To read more articles like this, please visit the EasyCars latest news page here.
EasyCars by Jeal is an Australian, web-based, dealer management system that automates the buying and selling of motor vehicles. Using the latest technologies, EasyCars removes frustrations experienced at the dealership and opens your doors for greater growth.
EasyCars features include Simple Stock Management, Automated Advertising, Integrated Accounting, Government Compliance, Business Reporting, Facebook Automotive Inventory Ads, Reviews Management, Dealership Websites and more.
To learn more about EasyCars Dealer Management System or to arrange a no-obligation free demo, contact us today on 1300 473 744 or submit the form below.