The Road to New Car Reinvention
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Brian Finkelmeyer discusses how dealers can improve their new car department performance during a webinar on November 16, 2016.
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The Road to New Car Reinvention
- 1. The Road to New Car Reinvention N o v e m b e r 1 6 t h , 2 0 1 6 Brian Finkelmeyer | vAuto | Director of Product and Business Development for Conquest | brian.finkelmeyer@vAuto.com
- 2. Moderator: Lori Dearman, Executive Webinar Producer Sponsored by: vAuto New Car Reinvention: A Roadmap for Improved Efficiency and Profitability Brian Finkelmeyer Director of Business Development vAuto
- 3. Who’s In the Audience? A diverse audience of professionals registered across the country.
- 4. Everything looks good on the surface
- 5. 33% of Dealers reported losing money in New Vehicle Operations in 2015
- 6. Stair Step Programs Additional Production Capacity Pricing Transparency 3 Key Drivers of Margin Compression
- 7. Increasing Pressure on Fixed and F&I
- 9. Poll Question 1: You’re all likely setting your forecasts for 2017, what kind of volume increase are you expecting to see next year at your dealership? • Down vs. 2016 • Flat-2% • 3%-5% • 6%-9% • 10% or more
- 11. 3 Big Opportunities for Increased Efficiency Inventory Customer Marketing
- 14. What is your New Car Turn? 5.9 4.2 3.3 2.4 0 1 2 3 4 5 6 7 Annual Turn Inventory Turn Disparity $1.5M Gross $600K Gross
- 15. Evaluate Your Inventory Turn
- 16. How can we manage our inventories more efficiently?
- 17. Smarter Ordering
- 18. Be careful about what you order! 2,900 unique combinations in Dealer inventory 1850 combinations have one or zero sales in the past 90 days 65% chance of getting it wrong!
- 19. Retail 90 Sales Days Supply Days to Sell Ordering Desirability Weighted 33.3% Weighted 33.3% Weighted 33.3% Scoring System to Rank Orderable Combinations
- 20. Vehicle Ordering Analysis TRIM Exterior Interior Sales Rank Days Supply Rank Days to Sell Rank Desirability 2.5S Gray Black 1 22 2 2 2.5SR Black Sport 2 25 7 5 2.5SR Gray Sport 3 17 7 3 2.5S Black Black 4 23 3 4 2.5SR White Sport 5 34 9 7 2.5S Silver Black 6 38 16 10 2.5SR Blue Sport 7 15 1 1 2.5SV Gray Black 8 38 33 14 2.5S White Black 9 31 9 9 2.5S Red Black 10 29 9 7 2.5SV Black Black 11 51 40 23 2.5SR Silver Sport 12 55 24 18 2.5S Blue Black 13 27 4 6 2.5SR Red Sport 14 40 19 13 2.5S White Black 15 52 20 16 2.5SV White Black 16 62 36 27 2.5SL White Beige 17 66 50 37 2.5SV Silver Black 18 67 54 39 2.5SL Gray Black 19 77 45 41 2.5SL Black Black 20 87 50 51
- 21. Clear Visibility to Challenges and Opportunities 142248 11 13
- 22. Adjusting Price with Age
- 23. Tie Pay Plans to Inventory Turn More floor plan income Less ordering errors More efficient lot management
- 24. 10% Improvement in Inventory Turn +$1,000,000 + Floor Plan + Ad Credits + Doc + Factory Bonuses Dealer A 2016 2017 Inventory 200 200 Annual Turn 4 4.4 Sales 800 880 Gross $10,000,000 $11,000,00 Assume $1250 per car Gross including F&I
- 26. “We’re not competitor obsessed, we’re customer obsessed. We start with what the customer needs and we work backwards.”
- 27. What does today’s new car customer want? Speed and Transparency
- 28. Customers Prefer Your Website vs. Your $20M Facility!
- 29. Provide Buying Tools “The More You Tell, The More You Sell”
- 31. Win Customers with Speed
- 32. Poll Question 2: What is the average amount of time it takes for customers to complete new vehicle purchases at your dealership? • < 1 hour • 1-2 hours • 2-3 hours • 3-4 hours • 4+ hours
- 33. Marketing
- 34. Customers are only visiting 1.6 Dealerships The game is being Won and Lost ONLINE!
- 35. Two Key Marketing Challenges Budget Allocation Execution
- 36. Are We Allocating $$’s Correctly? 25% Budget 75% Budget
- 37. Where Should I be Investing?
- 39. $7500 Per Month with Autotrader $5500 Per Month with Cars.com 180% less likely to click on MSRP Vehicles!!
- 42. Reinvention is never easy….
- 43. Measure What You Manage Key Performance Indicator Target New Vehicle Inventory Turn 6+ Showroom Closing Ratio 70%+ Advertising Expense Per Vehicle $200-$300
- 44. Next Steps - vAuto New Car Inventory Opportunity Analysis
- 45. Moderator: Lori Dearman, Executive Webinar Producer Sponsored by: vAuto ASK THE EXPERT Brian Finkelmeyer | vAuto | Director of Product and Business Development for Conquest | brian.finkelmeyer@vAuto.com Brian Finkelmeyer Director of Business Development vAuto New Car Reinvention: A Roadmap for Improved Efficiency and Profitability
- 46. The Road to New Car Reinvention Brian Finkelmeyer | vAuto | Director of Product and Business Development for Conquest | brian.finkelmeyer@vAuto.com N o v e m b e r 1 6 t h , 2 0 1 6