If you ask someone to define a “black hole,” you’ll probably get one of two answers.
The first answer is the original, scientific meaning — a black hole is a phenomenon in space where the gravitational pull is so strong, nothing gets out, not even light.
The second definition is more informal — a black hole is a place where people or things, especially money, disappear without a trace.
These definitions come to mind as I talk to dealers about their new vehicle inventories.
I’ll often ask, “How well is the capital you’ve invested in new vehicle inventory performing?”
Most of the time, I get what amounts to a “black hole” moment. Blank stares, followed by more blank stares as I ask about their best- and worst-performing vehicles, and how they might optimize their new vehicle inventory investment and mix.
It’s OK, and totally understandable. Historically, dealers haven’t needed to be detail-oriented new car managers. They ran with what they knew, and it worked pretty well.
But I would submit that today’s market requires a higher order of new vehicle inventory management insight and understanding, particularly if the predictions for a tougher upcoming year of retail sales are accurate.
That’s why I’ve committed myself to helping dealers break out of the black hole in new vehicle inventory management this year.
Get in touch to learn how more insight- and investment-driven new vehicle inventory management offers a lot of opportunity. Let’s leave the black holes behind!