Railroads connected the east and west coast and so began the industrial revolution! Blockbuster did not fall from grace overnight of being the #1 video store in America to extinct overnight. Technology changed the landscape of how business was being done and Blockbuster did not change and evolve how they did business and they paid the ultimate price. Banks and financial institutions are all interconnected to one another for the efficiency of commerce and to share information with one another. All of these are important things that shape, influence, and define changes in the way business is now being conducted to stay relevant with today's changes. Let’s stop exploiting ourselves and doing things the way we always have. Get on the Inventory Solution with other dealers, owners, operators, GM’s, GSM’s, and managers and start working together for a common business goal of making the car business great again!
Does this sound familiar?
I have a car that is 66 days old. I drive 22 miles to the auction to sell that unit. I own the vehicle for $16,125 after recon, 2 tires, safety inspection and a new windshield. Average MMR is $15,250. This number is transactional, it doesn’t know that my car had $1k spent on it in recon. Hell, the potential buyer would not know that either. The other dealer 37 miles the other way drives to that same auction, and needs cars, even if only 1 or 2. He NEEDS inventory. I sell my car to him for $15,400.00, I pay a fee of 350 so my net is $15,050. He buys my car for $15,400, pays a 350 buy fee and then spends 75 to have it delivered to his location. He now owns the unit for $15,825. WHY? Really, think about it. WHY? Why can we not work and deal directly with each other to HELP each other for the common goal of buying, selling, and trading inventory at the right price minus all the fees, over run up auction bids that have simply gotten out of hand and taken any chance of a decent profit out of the deal. We have spent BILLIONS of dollars on over run up auction bids, run fees, and re-run fees over the years. I bet you have probably said to yourself, "Theres got to be a better way to buy and sell inventory"? Dealers, the answer to your question is simply, YES! Welcome to The Inventory Solution!!!
If it doesn't make sense why do we keep doing it over and over again?
My car is aging, I have my car on The Inventory Solution for $16,000 and include in the description the recon I have done, and the overall condition of the unit. The other dealer instead of driving 45 mins each way and being away from the dealership looks on The Inventory Solution and sees it from his office, sends me a message and we agree on $15,650 and let him know him that I will include copies of RO’s detailing the recon that was done. He pays less, I get more and he has one of his employees run over a check and I give him the car and the title. EASY, SIMPLE, and SAVES us both MONEY! Yet we are always told, “Pay what ever It costs to get it at the auction... you need cars!” Then when you return to your store, your told, " In order to sell it quickly, you will need to price It at this price to move it quickly! When you do, it sells and you make a few hundred dollars and you hope to make it up in F&I. Now you need more inventory, so you start that same losing cycle over again and why? That's the million dollar question? Why do we keep doing the same thing over and over again and expect a different outcome? Many have called that INSANITY! Stop doing the industry standard because its what we've always done. Remember Blockbuster kept doing the industry standard and didn't see the new business model changing the way we watch movies.
Old Ways Won't Open New Doors