Most, if not all, dealers reduced headcount in response to COVID-19-driven business weakness. One Ford store reduced its headcount from 140 to 60. Such staff cuts might seem a bit drastic, perhaps not.
Dealers are sharpening operations in many ways, not only to cope with pandemic-driven changes but also for the long-term benefit of the organization.
For example, many are finding ways to do more with less. For some, extensive reliance on online sales has identified unnecessary management levels, as empowered sales associates handle the road to the sale and finance with customers, without TO involvement.
Another efficiency gain might save you from having to staff up again. Smart selling techniques using logical and physical time-to-line workflow software lock-in efficiency and, at the same time, land buyers the first time they call.
Our data show that dealers who can leverage this relation close two of three used car leads. Conversion drops to one of three, where these sales advantages are not available.
Until recently, no one recognized the hidden pockets of delay and waste existing in the two critical workflows necessary to sell cars profitably today: the logical and the physical. Tighter control here reduces the lag time between when you buy cars and when you sell them. The closer this gap is, the better control you have of lead conversion.
Logical workflow describes clearly defined and measurable tasks. Reconditioning workflow is called logical because it involves immediately identifiable and quantifiable steps and functions along a process continuum from Point A to Point B – from logging cars into reconditioning through this process and to vehicle sale-ready status.
Physical workflow is less measurable and trackable, though its dynamics either benefit or set back inventory turn. The physical workflow of vehicles through your dealership, to vendors, on test drives, or stored remotely - knowing where every car – and its keys – are at any moment on helps you sell them fast.
Anywhere along these two workflows, which intermingle and influence the other, we find opportunities to improve speed-to sale opportunities to a dealership:
Faster recon moves inventory to sale-ready status quicker so you can sell it sooner for more margin – within three to five days of acquisition.
Faster access to the selling information about your inventory – VIN, repairs, ready status – e equip and empower sales associates to address customer questions without having to put them on hold, email them back, or involve a manager. Lead conversion increases by a third.
Faster vehicle and key location controls asset flow, ensures asset security, and ends the frustration and time-consuming search for cars and their keys when most needed – when a customer’s in the showroom waiting for a test drive.
The best way we’ve found to describe these advantages is by the phrase, know it, find it, sell it.
Why risk lost opportunities because cars consumers linger in reconditioning? Why make customers wait and risk a sale because someone must run around to find the vehicle (and keys) the customer came to see and test drive?
Logical and physical workflows link reconditioning and sales. By leveraging both workflows, dealers turn more inventory, sell more cars than they need to stock, and serve online and in-store customers speedily, thoroughly, and professionally.
About The Author
Dennis McGinn is the founder and chief executive officer of Rapid Recon, the world’s standard in vehicle reconditioning and speed-to-sale inventory turn improvement, and the industry’s leading expert in time-to-line (T2L) reconditioning. Click now to schedule an instructive demo.
About Rapid Recon
Reconditioning workflow automation from Rapid Reconis the industry standard in time-to-line inventory turn and speed-to-sale vehicle revenue enhancement for automotive retailers. Benchmarking data based on 13 million vehicles processed uniquely positions Rapid Recon to advise dealers on how to improve their store’s profitability. Used by more than 2,000 dealerships, Rapid Recon ensures the accountability of processes, property, and people. Hence, dealers know answers quickly, find assets anywhere, and sell vehicles promptly to grow dealership profitability. www.rapidrecon.com CALL US: +650-999-0497
