Margin Compression; A leaking faucet

When I first got into the car business in the late 80’s, the term Margin Compression was something relating to industries other than Auto. Back in those days, a dealer normally had a 60-90 day period to maximize their gross profit. Unfortunately those days are over. The window of gross profit maximization is closer to 21 days now and the clock starts ticking as soon as you acquire the vehicle!Margin Compression Image
Defined: Margin Compression is simply where input costs rise faster than the prices received from sales of the products sold leading to decreasing margins over time. This is a common phenomenon in most industries.
At Rapid Recon, our number one objective is to reduce the amount of days it takes to get a used vehicle to YOUR front line, thereby giving you more days to reach your optimum gross profit. By reducing your Time-to-Line, we give you more days inside that “window” of gross profit maximization.
Here’s an insightful article by the guru of Used Vehicle Velocity, Dale Pollack that talks to the point of Margin Compression:
If you would like to find out how Rapid Recon can help reduce your Time-to-Line, want pricing or would like to schedule a brief, online demo, please call, text or email me.
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