5 Ways to Improve Your Dealership’s Inventory Turn Rate
Moving inventory quickly is critical to your dealership’s success, but it’s tougher than ever for dealers to meet the ideal 30-day turn rate.
For years, dealers industry-wide have tried to improve inventory turn rates by lowering prices. But this is just a temporary solution — and even worse — one that can end up putting your dealership out of business through margin compression.
So, how do today’s dealers sell cars fast without sacrificing profit?
By focusing on value over price.
This means rethinking how your dealership utilizes data from your own inventory as well as your local market. It can be tough to know where to start, especially for dealers who have gotten used to competing on price alone. That’s where VinCue comes in.
Here are five proven ways VinCue can help accelerate your dealership’s inventory turn rate:
1. Optimized Inventory Management
Simply put, the best dealerships don’t lower prices — they optimize their inventory.
Inventory data is crucial in understanding which products are doing the best at your dealership. VinCue lets you track sales, turn rates, pricing age, and inventory age for every vehicle on your lot. Dealers can use this data to drop underperforming inventory and stock more of the vehicles that bring in buyers.
Not only does VinCue help you buy the right cars, but it also lets you syndicate them out the right way. Buyers are likely to scroll right past listings with default descriptions and basic features. VinCue’s best-in-class syndication lets you grab their attention with high-quality photos, eye-catching superlatives, and custom descriptions. This ensures each vehicle earns its full, authentic value.
2. Market-based Pricing
You don’t want to win on price. You want to win on value. Dealers need to strike the right balance between a competitive price and profits for their business. That’s where VinCue’s market pricing data can help.
VinCue’s hyper-local sales data provides dealers with up-to-date wholesale and retail pricing based on similar vehicles in their market. It then factors in things like trim-level, reconditioning costs, and target gross. This lets you preserve the best possible price without sacrificing your gross margin.
Real-time market data also helps dealers identify the most profitable vehicles in their area. VinCue shows you top-selling vehicles, weekly sales numbers, and sales by brand market share. This allows you to increase your front-end gross by doubling down on your market’s most valuable vehicles.
3. Auction Sourcing
Time is at a premium when you’re at the auction. You often only have minutes, sometimes seconds, to make a decision.
Considering how important vehicle sourcing is to your dealership, you need to be confident you’re making the right decision.
With VinCue, dealers can quickly find key details about specific vehicles:
- Sales velocity
- Average inventory age
- How many are on the market
- How many are up for auction
- How many are in your inventory.
This helps dealers find the cars they need to attract buyers and acquire them at the best price possible to maintain margins.
Want to hear something even better? Auction sourcing is built right into VinCue. Dealers can find the most in-demand vehicles around the country and bid on them without ever leaving the platform.
4. World-Class Websites
Today’s car buyers visit on average 21 websites while doing vehicle research. If you don’t deliver the best online experience possible, they’ll move onto the next site without a second thought.
Your website is your first impression with an online customer. That means you’ll need to provide them with the same level of service they’d expect if they visited you in person. Unfortunately, many dealers make avoidable mistakes, like hiding vehicle prices behind an “email wall”.
VinCue helps dealers build professional, user-friendly websites with 100% customizable templates. Owners can use VinCue to create a mobile-friendly and attractive dealership page that leaves a strong first impression, helps convert visitors, and results in more leads.
5. Precision Advertising
Online advertising is essential to connect with buyers and move inventory. But those third-party listing sites most dealers rely on for marketing? They’re getting more expensive and less effective at delivering leads.
By running their own direct digital advertising, dealers can cut out the middleman and start generating their own leads. This can be a bit intimidating though for the uninitiated. That’s why VinCue gives dealers access to precision advertising with AdCue.
Adcue removes the guesswork in ad creation by identifying vehicles in your inventory that could use a boost. It then automatically generates ads for you with photos, key features, and eye-catching details.
Adcue also optimizes ad placement for you by targeting the ideal audience — customers in your area who are actively searching for vehicles you have in stock. This maximizes your ad spend by only serving ads to customers who are ready to buy.
Use VinCue’s All-In-One Platform to Accelerate Turn
Today’s dealers face an oversaturated market and increasing scrutiny among consumers. They have to work smarter and harder than ever before to rise above the noise and sell vehicles.
That’s why we built VinCue. We wanted to give modern dealers a platform built on a winning strategy for today’s automotive retail market. Each feature was designed to stand on its own in helping dealers increase turn without sacrificing gross. With VinCue’s all-in-one platform, dealers have access to these powerful tools in one place.
Every dealership is capable of taking control of their sales. Schedule your demo of VinCue today.