Do You Know Your DSD?
Over the weekend, I received the following note from one Joe Pistell, one of the smartest car guys I know…
(Days Since Detailing)
More Turns = Cleaner Inventory.
Cleaner Inventory = More Gross.
Clean cars sell for more and I have proof. First, let’s explore the study by Manheim and their findings, then, let’s make MORE money together.
Manheim has a consulting arm that assists enormous customers. A national bank approached them to find out why one region underperformed all the others. After an in-depth study Manheim Consultants found the culprit, they wrote:
“…The Manheim Consulting team was then able to determine that the true differentiator was reconditioning, or lack thereof: the bank was not performing the same level of reconditioning work on its vehicles in the underperforming region as it was in its other regions.”
Well, there you have it. If it doesn’t sparkle, you have to discount it to sell.
Before we laugh out loud about why in the world anyone would need a consultant for this info, I ask you, how many of us have instituted this simple fact into our aging process?
We all know a car coming out of recon looks fresh and inviting. And, we all know that a car that’s been sitting for 6 months looks about as inviting as the car the customer is trying to trade in!
Even though it’s common sense, we all walk by that aged car, we all know it needs a spit-shine, and we all just keep on movin ‘cuz we’re all busy trying to keep up.
Consider adding a step to your vAuto business process, set a fixed date threshold and when that time arrives, send it back and make it shine! Integrate that date with a price drop and then say good bye to it!
Lots of wonderful things happen when your inventory is turning fast. Not only does the majority of your inventory sparkle like it just came out of recon, but, the sales staff can communicate a GENUINE sense of urgency. A shopper uses their intellect to winnow down their choices, but it’s emotion that drives that final commitment. Inventory that’s turning fast and sparkles like new! I can’t think of a better 1-2 punch.
I’ll ask you again…. Do you know your DSD?
Hope this helps,