By Bruce Thompson, President, Red Bumper
DDD Editor Input and Commentary: Here’s a quick rundown on the innovative new car inventory management system that Red Bumper has evolved, migrated, and developed from their leadership position in mobile technology platforms in used car inventory management for dealers:
What dealer management must realize:
The amount of insight dealers have into their new-car operations is extremely limited due to a variety of factors that are currently forcing dealers into buying the wrong units at the wrong time. External and internal pressures to acquire units that are truly surplus to the dealer’s needs are serving the desires of OEMs and hindering the dealer from running the most profitable and efficient business possible. Meanwhile, these surplus units simply sit on the lot collecting dust and costing you money.
What metrics & KPI can your dealer team gain to manage your new car inventory?
There will now be at least one product on the market that will put the power back in the hands of the dealer to streamline their new car operations and take it to the next level. Vital metrics and KPI’s measured for any dealer or dealer group should include:
- Current day supply, Days Supply to Target
- Turn time
- Top colors
- Top vehicle packages
- Top trims
- Units on the ground vs. in transit
- Profits, profit per day
- Interest and grace units
- F & I Cycle times
- Stocking recommendations
- Real-time Forecast to targets
- Integrated descriptions
- OEM Incentive and market pricing tools
- Trading tools for groups
Ordering vehicles from the Manufacturers:
Your decisions when it comes to ordering from the OEM will no longer come down to the “golden gut”, but rather real-time analytics and key performance metrics providing a solid foundation to your reasoning.
Add merchandizing and pricing tools:
After the system does all the heavy lifting for the dealer from an ordering and stocking perspective, we still need new merchandising and pricing tools. Look for a tool that integrates with companies like Edmunds.com True Market Value (TMV) algorithm for every unit to allow a dealer to truly master the pricing of their new inventory. Also, auto-pricing tools based on formulas, algorithms and real-time market data that take the guesswork out of new car pricing.
New car managers and dealer principals have been waiting for this type of technology for a very long time. It’s time to up your New Car IQ.
Now go www.redbumper.com or call 888 339‑1116 to see how this all works.