Infographic: Inventory Markdown Decision Tree


The Inventory Markdown Decision Tree was formulated by the most experienced automotive digital marketers in an effort to help dealerships avoid unnecessary inventory markdowns.

Markdowns may seem like the only answer when moving stubborn units off the lot. However, LotLinx research shows that each new markdown costs dealerships an average of $330*. This number may seem menial in the scheme of automotive sales – but relying on price cutting can result in significant margin suppression in the long run.

LotLinx helps dealers to be proactive in their inventory marketing and explore more cost-efficient alternatives before resorting to unit markdowns. Evaluating vehicle engagement is one way dealers can better predict a vehicle’s ability to sell at full price. Units with low engagement might simply need more marketing attention in order increase exposure. If units end up receiving greater engagement yet remain unsold, it could then be time to consider repricing.

As you walk through the Inventory Markdown Decision Tree, consider your dealership’s specific inventory goals and the current strategies used to make markdown and promotional decisions.

For additional information regarding vehicle engagement and markdown decision making, or to discuss your dealership’s specific inventory needs, request a consultation with our inventory marketing experts today.

Tags: Sell Cars Smarter, decision tree, inventory markdown, margin compression, markdowns, sell smarter