Should you have a 45 day turn policy at a luxury car store?
Here’s a question that I received from a leading industry consultant and my response:
Q: Dale, It’s been some time since we’ve spoken. I’m at a Mercedes-Benz store this week doing a POPP Evaluation. The question of optimal inventory turn came up, as it always does. Is it realistic to expect that Mercedes-Benz CPO Vehicles be held to a 45 day turn as well?
Thank you in advance for your input.
A: Good to hear from you. The 45 day turn is obviously much tougher for a MB dealer, but I do have several high-luxury car operations that do it. I think, however, if it is achieved every aspect of the operation needs to be clicking on all cylinders.
In other words, if the service department isn’t working efficiently or the internet department isn’t on it’s game, but the dealership has a 45 day turn policy they will get murdered. Getting to a 45 day turn policy has to happen through the inertia of highly efficient operations rather than by executive order.