By: Jen Ryan, Director of Inventory Solutions
Do you know how much profit is walking out the door with every lost trade-in deal? Determining the best price to put on a specific vehicle can be a challenge, but it’s a critical element of completing a deal. Knowing how to make adjustments based on unique equipment, options or excess wear and tear can make or break the whole deal. Too much margin and you could lose the sale. Too little and you could be leaving money on the table. A watchful eye by dealers can help to ensure your appraisal process is running smooth, efficient and profitable.
Missed Trade Opportunities
One opportunity for dealers to tighten up their appraisal process is to identify missed trade opportunities. With missed trade opportunity reporting, dealers can identify:
- Specific appraiser or used car manager with trade bias
- Where a potential sales person is blocking deals
- Where a potential sales person is blocking trades
Reporting is available today, via Dominion Inventory Manager, for dealers to quickly review and understand where they missed deals and when consumers decided to trade at a competitor’s dealership.
Understanding ROI of Missed Trade Opportunities:
The down funnel effect of a single missed trade opportunity results in, at minimum, a loss of two immediate sales – i.e. repurchase by trading consumer and purchase of the traded vehicle by a new consumer. In addition, just imagine the ongoing missed maintenance and service appointment opportunities for each of these households.
Increase Consumer Satisfaction:
Increasing transparency during the appraisal process will help to increase consumer satisfaction and build confidence in your dealership’s brand. Consumers will know they have an honest dealership offering a fair price for the trade (and not have to shop the trade down the street).
Grab hold of your Appraisal Process Today:
Dominion Inventory Manager helps dealers develop a strong pricing and merchandising strategy and gain a competitive edge. Through Appraisal Guidance you can quickly access market data and book values and see what specific vehicles are selling for in your local market so you can determine the best price to offer your customers. Now, we’ve added power and performance to the process, while simplifying the appraisal workflow. Get appraisals into the system more quickly with the ability to instantly scan the vehicle VIN from the home screen using the mobile app. Take photos and add them directly to your appraisal and alert other dealership staff of new appraisals. This puts the power in the hands of your sales team to get the ball rolling while waiting for your finance office or used car manager. You’ll be able to generate faster, more accurate and competitive appraisals and close deals faster.
To learn more about how Dominion Inventory Manager can streamline your workflow and deliver a strong pricing and merchandising strategy that gives your dealership a competitive advantage, go here.