The below is a post taken from my good friend and industry training expert, Tommy Gibbs’ Zinger.
If I get asked this question once a week, I get asked this question 100 times a week. It’s generally phrased as, “We can’t find inventory, do you have any suggestions?”
These are smart, intelligent dealers and managers asking the question. These are people who are true “car guys and gals.” They are not new to the game and they know what end is up, yet they still ask the question.
They know the answer. But they hold out for a miracle that I have a secret tunnel that I can connect them to that has some gold at the end.
To quote my good friend and mentor Dale Pollak:
“The reality is that there are plenty of cars available in the wholesale market, but the margin opportunity for most is very, very small.”
So there you have it. Dale has spoken and I shall interpret. There’s inventory out there, but you can’t or won’t pay the price.
You won’t pay the price because:
You haven’t accepted the fact that units you purchase aren’t going to have much of a profit margin.
You haven’t accepted the fact that you will need to turn and burn those units.
You haven’t accepted the fact that total gross is more important accepted average gross.
You haven’t accept the fact that packs and high recon costs are adding to your woes of paying the price.
You haven’t accepted the fact that paying on gross profit further complicates the retail selling process.
You haven’t accepted the fact that you need to create a greater awareness on look-to-book.
You haven’t accepted the fact that mining your customer base for potential sellers is worth more than a 60-day trial run.
You haven’t accepted the fact that the number one issue of low grosses is you sell too many units late in the life-cycle.
You haven’t accepted the fact that many good things come to the table when you find a retail buyer at some number.
These are just a few of the things you haven’t accepted, that are causing you not to be able to find the inventory you need.
It’s important to know where to buy cars. It’s even more important to know why you aren’t. That’s all I’m gonna say, Tommy Gibbs