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The digital transformation:
Used car retail performance
management 2.0
E.N.G. Automotive Retail & Distribution
Berlin - Ap...
Papal Inauguration
Pope Benedict XVI
Papal Inauguration
Pope Francis
NO TRIVIAL CHANGE
Major trends changing consumer car buying patterns
The internet empowers
consumers
Smartphones and table...
NO TRIVIAL CHANGE
And also the used car business sees already disruptions…
In a time where
supply and demand
changes faster than
ever, data-driven
insights are vital to
drive your used
vehicle busi...
Actionable
Metrics &
Insights
DATA-DRIVEN INSIGHTS
Monitor real-time data to improve used car performance
MARKET DAYS
SUPPLY
PRICE TO
MARKET
INVENTORY
AGE
PRICING
STRATEGY
STOCK
TURN
SHARE OVER
FIRST PRICE
TO MARKET
NUMBER OF
PH...
STOCK TURN
Careful stock management to improve operational performance
5,6
7,4
0,0
2,0
4,0
6,0
8,0
10,0
Nov. 2014 Nov. 201...
MARKET DAYS SUPPLY
Measures the relationship between supply and demand today
120
Supply
Total number of vehicles currently...
MARKET DAYS SUPPLY
How can Market Days Supply help protect residual values?
Volume
Distribution
Pricing
Strategy
GERMAN PREMIUM
MANUFACTURER
JAPANESE VOLUME
MANUFACTURER
EUROPEAN VOLUME
MANUFACTURER
1 - 3 0 d a ys
3 1 - 6 0 d a ys
6 1 ...
105 % 5% above Price to Market
100 % Average Price to Market
95 % 5 % below Price to Market
Nøgletal
PRICE TO MARKET
Asses...
Price/
Market
MDS
97 50
100 74
101 150
99 217
Price/
Market
MDS
101 60
98 60
95 60
- -
Days in
stock
1-30
31-60
61-90
91+
...
Attractive cars
priced too low
Identify network dealers who
consistently price below the
market
Identify network dealers
w...
SHARE OVER FIRST PRICE TO MARKET
Identify and manage deprecation risk of your inventory
Avrg.
Price/Market
102%
Total Inve...
TOO FEW PICTURES
Manage the ideal photo count
CASE STUDY
Premium Brand Dealer in the Netherlands
Average stock
days reduced
by
15%
95%
Gross Margin
per unit up by
Used ...
CASE STUDY
Asian OEM
Apr. 2015 Nov. 2015 Change %
Over aged (>90 days in inventory) 2.348 1.747 -26%
Slow market (MDS >120...
www.indicata.com
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The digital transformation: Used car retail performance management 2.0
Jörg Höhner, Global Managing Director INDICATA
E.N.G. Automotive Retail & Distribution Summit
Berlin - April 5, 2016

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The digital transformation: Used car retail performance management 2.0

  1. 1. The digital transformation: Used car retail performance management 2.0 E.N.G. Automotive Retail & Distribution Berlin - April 5, 2016 Jörg Höhner, Global Managing Director INDICATA
  2. 2. Papal Inauguration Pope Benedict XVI Papal Inauguration Pope Francis
  3. 3. NO TRIVIAL CHANGE Major trends changing consumer car buying patterns The internet empowers consumers Smartphones and tablets are game changers Consumers take their homework seriously Targeted research results influence buying decisions WWW
  4. 4. NO TRIVIAL CHANGE And also the used car business sees already disruptions…
  5. 5. In a time where supply and demand changes faster than ever, data-driven insights are vital to drive your used vehicle business to growth.
  6. 6. Actionable Metrics & Insights DATA-DRIVEN INSIGHTS Monitor real-time data to improve used car performance
  7. 7. MARKET DAYS SUPPLY PRICE TO MARKET INVENTORY AGE PRICING STRATEGY STOCK TURN SHARE OVER FIRST PRICE TO MARKET NUMBER OF PHOTOS DATA-DRIVEN INSIGHTS KPIs to guide used vehicle suceess
  8. 8. STOCK TURN Careful stock management to improve operational performance 5,6 7,4 0,0 2,0 4,0 6,0 8,0 10,0 Nov. 2014 Nov. 2015 Profit Impact: € 38.400 Small Dealer 6,6 8,3 0,0 2,0 4,0 6,0 8,0 10,0 Nov. 2014 Nov. 2015 Profit Impact: € 180.300 Mid-size Dealer 7,3 9,2 0,0 2,0 4,0 6,0 8,0 10,0 Nov. 2014 Nov. 2015 Profit Impact: € 1.140.700 Large Dealer Group
  9. 9. MARKET DAYS SUPPLY Measures the relationship between supply and demand today 120 Supply Total number of vehicles currently available Demand Average number of vehicles sold per day 60
  10. 10. MARKET DAYS SUPPLY How can Market Days Supply help protect residual values? Volume Distribution Pricing Strategy
  11. 11. GERMAN PREMIUM MANUFACTURER JAPANESE VOLUME MANUFACTURER EUROPEAN VOLUME MANUFACTURER 1 - 3 0 d a ys 3 1 - 6 0 d a ys 6 1 - 9 0 d a ys 9 1 + d a ys INVENTORY AGE Minimize the profit harming effects of increased market volatility 24% 13% 13% 50% 28% 15% 12% 45% 29% 18% 13% 40%
  12. 12. 105 % 5% above Price to Market 100 % Average Price to Market 95 % 5 % below Price to Market Nøgletal PRICE TO MARKET Assess the price position of your inventory
  13. 13. Price/ Market MDS 97 50 100 74 101 150 99 217 Price/ Market MDS 101 60 98 60 95 60 - - Days in stock 1-30 31-60 61-90 91+ Typical Ideal PRICING STRATEGY Know when Market Days Supply is in your favour
  14. 14. Attractive cars priced too low Identify network dealers who consistently price below the market Identify network dealers without “rational” pricing strategy Know when Market Days Supply is in your favour „Discount“ dealers Fresh inventory priced lower than old Attractive cars priced too low PRICING STRATEGY Top 3 dealer pricing strategies undermining profitabilty
  15. 15. SHARE OVER FIRST PRICE TO MARKET Identify and manage deprecation risk of your inventory Avrg. Price/Market 102% Total Inventory Value € 8.426.359 Share Over First Price/Market 37% Value @ Retail Asking Price € 3.754.629 Depreciation Risk Next Month € 56.319
  16. 16. TOO FEW PICTURES Manage the ideal photo count
  17. 17. CASE STUDY Premium Brand Dealer in the Netherlands Average stock days reduced by 15% 95% Gross Margin per unit up by Used car sales grew 113% YOY 2,1 to 3,7 Stock turn increased from
  18. 18. CASE STUDY Asian OEM Apr. 2015 Nov. 2015 Change % Over aged (>90 days in inventory) 2.348 1.747 -26% Slow market (MDS >120 days) 1.982 1.564 -21% Over first price to market 2.218 1.723 -22% Price not changed recently (>60 days) 2.869 2.135 -29% Too few pictures (<3 pictures) 846 474 -44%
  19. 19. www.indicata.com
  • GwendyUnzelman

    Nov. 27, 2021
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    Aug. 30, 2017
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    Jul. 27, 2016
  • DuranGarner

    May. 27, 2016

The digital transformation: Used car retail performance management 2.0 Jörg Höhner, Global Managing Director INDICATA E.N.G. Automotive Retail & Distribution Summit Berlin - April 5, 2016

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