If your lot holds 100 used cars and you sell 100 cars in a month, conventional wisdom says, “great job, you turned over your entire inventory.” But in an era with so much valuable data available, dealers have to take a deeper look at their potential.
At DealerSocket, we don’t just look at the speed and frequency of inventory turnover. We look at Profit Per Day, a simple calculation that looks at the profit a dealer makes on a car, divided by the number of days it took to sell.
Why Profit Per Day?
The most valuable asset at your dealership is not the car you’re selling, it’s the parking space where the car is sitting. Profit per day is important because it allows you to truly analyze how much value you are getting out of each space. If your profit per day is lower than expected, you can adjust your aging strategy.
What is the Optimal Profit Per Day Goal?
Based on what we see with our most successful dealers, $100 is a really good profit per day. That number may vary from dealer to dealer, but $100 is a good goal.
To hear Sr. Customer Success Manager Erik Post and National Director of Customer Success Jeff Landwehr discuss profit per day and important elements of a good aging strategy, listen to the DealerSocket podcast.
To hear the entire conversation, check out the DealerSocket podcast.
From appraisal to acquisition to stocking to merchandising to pricing to syndicating to disposing, our tools provide opportunities to maximize the value of your inventory investment every step of the way.DEALERSHIP INVENTORY
INDEPENDENT DEALER MANAGEMENT SYSTEM (iDMS)
Merging the best-of-breed technologies from FEX DMS and AutoStar Solutions, iDMS is a revolutionary next-generation dealer management system tailored specifically to the Independent/BHPH market.iDMS
The Technology Platform of the Future Is Here Now
RESPONSIVE WEBSITES AND DIGITAL MARKETING
We've got all the right tools to help your dealership earn more business. We'll use a unique combination of our innovative products to craft a winning strategy.DIGITAL MARKETING
The Michael Jordan Approach to CRM
A general sales manager I work with asked for any CRM tricks that could help. I immediately thought of two things: Blackbird dashboard widgets and Michael Jordan. Yes, that Michael Jordan.
First Pencil: 2019 Regulatory Hotspots
Market insider believes the once defanged CFPB is preparing to mount a comeback, while the FTC may have tipped its regulatory hat when it comes to dealers.
FCA Digital Selects DealerSocket as Certified Website Provider
Company's DealerFire website and digital advertising platform is now certified for use by all 2,600 U.S.-based FCA dealers
Driving Forward Podcast | What's Driving Your Website?
The guys who built the Engine 6 website platform discuss the unique challenges dealers face, and how to overcome them.
Learn More About DealerSocket's Suite of Dealership Software
DealerSocket offers a suite of products that can help you get the most out of your dealership.