Accomplishing 8-12 inventory turns per year is at the core of every successful dealership’s best business practices.
Some smaller dealers do not recognize the importance of having a well formulated mark down strategy that ensures they
will accomplish the 8-12 inventory turns per year needed.
Also several dealers are still trying to hit a home run on every car. If you are asking too much for your cars you
will never receive a lead on the Internet. Moreover, asking too much will greatly reduce the overall effectiveness
of your Internet marketing campaigns.
Likewise, refusing to mark your cars down as they age with a predetermined strategy will leave you stuck with a lot
full of old units stealing the gross you made on the winning deals. The first 30 days a car is in inventory represents
the best time for it to be sold for a maximum profit. On Day 90 the unit must come off the Floor Plan anyway, and if you
take it back to auction you are going to lose hundreds or thousands of dollars. Keep in mind these recommendations are
for most dealers selling commodity cars like; Taurus, Camry, Accord, Malibu, Altima, F-150, etc. Heavy Duty Trucks
usually fetch more profit so you might want to start out asking more for them.