Digital Dealer - March 2018 - 23

I haven't done a
scientific study, but
my conversations with
dealers suggest that
the best performers
take their stocking
decisions more seriously
than they ever have in
the past. There's less
guesswork and instinct
as they evaluate the
Market Days Supply of
specific model colors/
combinations to order a
larger share of vehicles
that are likely to sell
more quickly. While
dealers can't necessarily
dictate their entire
inventory with their OEM
partners, the additional
up-front ordering
assessment minimizes
doubling (or tripling)
up on slow-moving
inventory and helps you
identify the vehicles that
will need more marketing
and pricing attention
right away. As singer
Billy Joel once said,
"get it right the first time,
that's the main thing...
get it right the next time
that's not the same
thing."

2. INVENTORY AGE
REDUCTION. Just

as they have in used
vehicles, dealers are
recognizing that aged
inventory isn't helping
them maximize sales
and profitability in new
vehicles. Top performers
are setting new goal
posts related to inventory
age, such as no more
than 20 percent of all
inventory over 90 days at

any given time. The age
management focus relies
on marketing and pricing
strategies that account
for each vehicle's value
position in the market, in
conjunction with inventory
age, to retail vehicles
prior to crossing the time
line. I should add that the
age management focus
should also extend to
dealer trades-it's always
best to send an older-age
vehicle, which doesn't
happen consistently if it's
not an area of management emphasis.
3. IMPROVED
MERCHANDISING. In

and engaging for
potential buyers.
These areas of fundamental focus really
amount to the blocking
and tackling that's necessary to make the most
of today's new vehicle
business.
Just like sports, when
you master the fundamentals, you have the
foundation you need to
perfect your game and
make it more profitable.
BRIAN FINKELMEYER
serves as the Director of
Business Development for

Conquest at vAuto. In this
role, he is responsible for
all aspects of vAuto's New
Car business. Prior to vAuto,
Brian spent 18 years with
Nissan North America in a
variety of sales leadership
positions. He is a routine
presenter and author for
various automotive trade
publications. His topics
focus on the importance
of increasing new vehicle
inventory turn by having
the proper inventory mix,
strategically pricing based on
age and supply, and insights
on maximizing effectiveness
of dealers marketing
investment. EMAIL: Brian.
Finkelmeyer@vauto.com

the past couple years,
dealers have become
better at ensuring each
new vehicle listing has
the custom descriptions,
photos, price and videos
to help it stand tall online.
But you still see a sizable
share of new vehicle
listings that lack the right
presentation-often due
to a lack of attention or
time, or the absence of
any oversight beyond
once-a-month updates.
Dealers often complain
about the costs/benefits
of advertising their
vehicles on third-party
sites, but the complaint
holds less merit if the
listings themselves
are a problem. It's also
worth noting that once
these merchandising
fundamentals are
addressed, dealers can
focus on other ways to
make their new vehicle
listings more compelling
D I G I TA L D E A L E R . C O M

MARCH 2018

23
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Table of Contents for the Digital Edition of Digital Dealer - March 2018
