No Misery in Missouri

by dpollak on 02/05/2010 · 9 comments

I received the following email from a client in Moberly, Missouri.

Dale,Ford Mustang GT 2005 thumbnail 03 No Misery in Missouri

I wanted to drop you a line and let you know what has been happening here in little Moberly, Missouri.  We just came off of our highest volume month (with the exception of one month) since February 2008.  Starting in January of 2009, which was not our worst point, we had 52% of our inventory over 60 days old, 64 avg. days in inventory and less than 6 turns per year.  Today we are down to 11% over 60 days aged and trimming quickly, 27 avg. days in inventory and 14+ turns per year.  Due to many conversations with Jasen Rice we increased our AutoTrader package and more than doubled our AT traffic to nearly 2500 VDP’s last month with only about 50 units in stock, our previous high had been 1100.  It’s not 10,000 VDP’s but it’s a good start.

A big thanks to you, Jasen and the entire staff at vAuto!  We couldn’t have made it this far without you!

Sincerely,

Nick Miller

No Misery in Missouri

Tagged as: AutoTrader.com, Education, Energy, Missouri, Moberly, Moberly Missouri, Technology, United States

  • kipmiles

    Dale- here are my numbers for Janaury from Autotrader, am I on the right track?
    Total AutoTrader.com shoppers in your local area * 118537
    Average Number of Vehicles Listed per Day
    Used 25
    Total 25
    Exposure
    Times your vehicles were seen in a search 81,017
    Banner ad impressions 7,673
    Find Your Dealer search impressions 277
    Total Exposure 88,967
    Activity
    Detail pages viewed for your inventory 2,292
    Viewed maps to your dealerships † 23
    Printable ads requested † 12
    Viewed your website or entire inventory † 111
    Find Your Dealer click-thrus † 30
    Banner Ad click-thrus 3
    Total Activity 2,471

    It seems like we are headed rigth but sometimes I am not sure. What is your opinion

  • nrmmiller

    Kip,

    My humble opinion is that you are looking really good! 81,000 search impressions with a 2,300 click thru rate on 25 units in stock looks good. That gives you a 2.8% SRP/VDP conversion ratio, which isnt bad but there is more out there! I think that if you can keep knocking out SRP's near 80,000 every month you can really make your dealership hum. Keep working with your AT rep and vAuto PM to find new and creative ways to drive those VDP's. I am working to get our numbers to be consistently between 4.0-5.0% SRP/VDP conversion. Think about what your possibilities would be with 3500+ active shoppers on your 25 cars every month would look like!

  • http://www.dalepollak.com Dale Pollak

    Kip,
    Thanks for your metrics. First, I'd like to know what level package subscription you have with AutoTrader. Is it a Premium or Feature package? Also, ask your AutoTrader rep for your Demand Index. This information will help me assess your performance. There is, however, one immediate concern, that is the conversion of SRPs into VDPs. If you divide 2287 (VDPs) by 81,017 SRP's, you get 2.8%. This number should be at least 3%, and if well executed can be 4-5%. Please contact your AutoTrader rep and they can show you what to do to improve the conversion ratio. Remember, what you're working for on these third-party classified sites are VDPs. VDPs convert into walk-ins, and we all know that walk-ins translate into sales. Once you've supplied me with the additional information, I can make more specific recommendations as to what you can or should do to drive VDPs. Obviously feel free to call me directly or respond with questions.

    Thanks,
    Dale

  • http://www.dalepollak.com Dale Pollak

    Nick,

    I’m very impressed with your analysis. You are speaking with the knowledge and expertise of a true 21st Century used car aficionado. Nice work.
    Dale

  • http://www.dalepollak.com Dale Pollak

    Kip,

    Your demand index of 154% is very respectable. You state that you have a Premium package, for which brand? If it’s for Chevrolet, what percentage of your current inventory is Chevy? Keep in mind that you want to be sure that the brand of your Premium package aligns most appropriately with your inventory. I also know that AutoTrader’s Early Model Premium package is a good value. What percentage of your vehicles are 5 model years or older? Sorry for the follow up questions, but these are critical factors to be sure that your expenditures are being optimized. Also, be sure to get a hold of your AutoTrader rep to focus on getting your VDP conversions at least at 3%, and hopefully closer to 4%.

    Thank you,
    Dale

  • kipmiles

    We are on the 'early model premium' and 50% are 5 years old. I met with my AT Rep last night and we are meeting again on Friday, he is clear that 4%-5% is the target.

    What are the 'top-dogs' achieving in demand index?

    2 other things that jumped out on the Scorecard are 'Activity Per Vehicle' (6.3) score and videos (34%). We currently are uploading and will be at 100% video by end of week.

    Anything else?

  • Anonymous

    We are on the ‘early model premium’ and 50% are 5 years old. I met with my AT Rep last night and we are meeting again on Friday, he is clear that 4%-5% is the target.

    What are the ‘top-dogs’ achieving in demand index?

    2 other things that jumped out on the Scorecard are ‘Activity Per Vehicle’ (6.3) score and videos (34%). We currently are uploading and will be at 100% video by end of week.

    Anything else?

  • http://www.dalepollak.com Dale Pollak

    Kip,

    I think the high-end of the demand index is around 175 to 200%. Perhaps some of our AutoTrader friends could provide more clarification on this point. I don't have a frame of reference for the Activity per Vehicle, again, perhaps someone from AT can help us on this metric. With 50% of your inventory 5 years or older, I have to believe that the early model package is a great value.

    Kip, you're definitely paying attention to the right metrics, the new metrics of used car management. Ask your AutoTrader rep to become accountable for an ever increasing number of VDPs. That's what you're working for. You might have to spend more money to get there, but if you're doing all of the things right, and it seems that you largely are, then your additional investments will likely create the result. I don't know if it's possible, but I'd like to challenge you to achieve 10,000 VDPs in a single month.

    Thanks,
    Dale

  • http://www.dalepollak.com Dale Pollak

    Kip,

    I think the high-end of the demand index is around 175 to 200%. Perhaps some of our AutoTrader friends could provide more clarification on this point. I don’t have a frame of reference for the Activity per Vehicle, again, perhaps someone from AT can help us on this metric. With 50% of your inventory 5 years or older, I have to believe that the early model package is a great value.

    Kip, you’re definitely paying attention to the right metrics, the new metrics of used car management. Ask your AutoTrader rep to become accountable for an ever increasing number of VDPs. That’s what you’re working for. You might have to spend more money to get there, but if you’re doing all of the things right, and it seems that you largely are, then your additional investments will likely create the result. I don’t know if it’s possible, but I’d like to challenge you to achieve 10,000 VDPs in a single month.

    Thanks,
    Dale

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