On the latest episode of Used Cars Weekly, host Jasen Rice discusses stocking and how dealers can be proactive in their stocking instead of reactive. Stocking used-car inventory is a key element of Rice’s “first 30” strategy which he discusses in the first episode.
Rice says that acquiring valuable used-car inventory is one of the most difficult challenges that dealers are faced with in today’s automotive climate. During this time when used vehicles are scarce, dealers should create a buying center and go after private party sellers.
Dealers should look to utilize a two-week selling strategy. Rice uses the example of a dealer with 100 used cars in stock and he or she has sold 50 vehicles in the last two weeks. The dealer in this scenario is selling 50% of their inventory. Rice says this is a good place for any used-car dealer to be. The two-week selling strategy allows dealers to see what they anticipate selling so they can stock their inventory accordingly.
Rice then talks about the difference between being proactive and reactive while stocking used vehicles. Rice encourages dealers to look for cars that are in stock that are expected to leave soon. Reactive dealers only restock the vehicles that are selling, which creates tight selling windows and pressure to get cars off the lot.
Proactive dealers will restock not only the cars they expect to sell, but also the vehicles that are expected to reach their age policy or sell down the line. Proactive stocking keeps dealers out in front of them their used-car inventory. This keeps them prepared for any changes in used-vehicle buyer activity.
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