All the underperforming used car dealers I speak to have one thing in common: they don’t know they are actually running a casino.
If you have cars sitting on your lot too long, or worse, you are turning over your inventory, but your profit isn’t reflecting the amount of work it takes to do so, it’s time to start running your lot like the casino it is.
It all starts with recognizing the car you sell isn’t as valuable as the spot it is parked. A casino manager doesn’t just fill the floor with slot machines, they recognize the value of each chair and make sure the machine in front of it is as profitable as possible. Likewise, as a dealer, the long-term health of your business depends on your ability to identify which vehicles are most profitable to you.
At DealerSocket, we don’t simply look at the speed and frequency of inventory turnover, we track profit per day - the profit made on each car sold, divided by the number of days it took to sell. Knowing profit per day allows dealers to build better processes for aging and pricing strategy.
For example, a car that sells for $2,000 in 20 days and a car that sells for $1,000 in 10 days have the same profit per day, but the second car gives us two more at-bats in finance, and potentially two more at-bats with trade-in.
To learn more about profit per day and inventory strategy from a DealerSocket professional, request a demo below. We would love to connect with you.
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
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 Technology Platform of the Future Is Here Now
Connecting The Dots, Part 1: Linking the Digital Experience to Real Life
Linking the Digital Experience to Real Life
Automotive Podcast | The Difference Between Aging Policy and Aging Process
Auto dealers need more than an aging policy, they need a solid process to maximize the profit on each car on their lot.
Automotive Podcast | The best metrics to inform your pricing strategy
To build the most effective aging strategy, dealers should track their profit per day.
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.
An expert will be in touch shortly.