How much is aging inventory costing you?
Hanging on to inventory costs you money. In fact, as dealership consultant Tony Noland writes in this article from Wards Auto, in 2015 the average dealer had a floor plan interest of $126 per retail vehicle, compared with $89 per retail vehicle in 2014.
But with smart strategies, detailed information, and the right technology, you can minimize – or even eliminate – those costs.
OEMs frequently offer a “free period,” during which dealers are exempt from holding costs for a specific number of days. When you know where each car in your inventory stands in its free period, you can develop the VIN-specific strategies that can help ensure those cars will move before their time elapses. Which means you could pay no holding costs.
Noland highlights the importance of knowing precisely how long every car in your inventory has been on the lot. He explains, “I hope you have a process in place that identifies any vehicle that has been in stock for 75 days or longer.”
The LotLinx VIN View Optimizer™ can provide that level of detailed information. The VVO™ will detail not just days on lot, but also VDP views by traffic source. Then, you can create VIN-specific campaigns to get the 30 VDP views needed to sell before the free period ends.
Industry expert Brian Pasch also believes dealers should be focusing on VIN-level strategies, and says the VIN View Optimizer™ is a best practice for dealers. Read his post for more insight. A free VIN View Optimizer™ report can reveal which VINs on your lot are costing you money, so you can take action.
The benefits of VIN-specific advertising – VINvertising™ – are clear. When you know which cars have been around the longest, and develop focused strategies to move them out, you’ll minimize holding costs, and boost your bottom line.