Stock Turn

[Beautiful South Martin 24]

A pal of mine has just started as used car sales manager at a local Vauxhall main dealer, 50-60 used car set up and 3 salesman. He has told me that his employers have targeted him with a stock turn of 2 x month??. Does anyone know what the industry norm is or what anyone on here, with that size pitch, or close to is doing? Just seems a bit excessive to me 100+ units a month!

[BHM 994]

200% stock turnover per month - he must be Superman. I’m ignorant of the machinations & bullshit in the main dealer world, but perhaps it’s a case of give a (very) high target & see what the outcome is?

[trade vet 702]

1 hour ago, Beautiful South Martin said:

A pal of mine has just started as used car sales manager at a local Vauxhall main dealer, 50-60 used car set up and 3 salesman. He has told me that his employers have targeted him with a stock turn of 2 x month??. Does anyone know what the industry norm is or what anyone on here, with that size pitch, or close to is doing? Just seems a bit excessive to me 100+ units a month!

Hi there,

Did your friend not take the job based on the 'on target earnings potential '.The dealership knows of course he has no chance of achieving these targets.Vauhall dealers are really struggling,surely your friend new that.

[Dan W 57]

2 hours ago, Beautiful South Martin said:

A pal of mine has just started as used car sales manager at a local Vauxhall main dealer, 50-60 used car set up and 3 salesman. He has told me that his employers have targeted him with a stock turn of 2 x month??. Does anyone know what the industry norm is or what anyone on here, with that size pitch, or close to is doing? Just seems a bit excessive to me 100+ units a month!

Can be done, pretty easy to piss away vehicles for no profit.

Vauxhall dealer across from us sell used cars sometimes with £50 profit it in hoping for add ons, just need to ask the question why bother

[SuperLease 13]

2 hours ago, Beautiful South Martin said:

A pal of mine has just started as used car sales manager at a local Vauxhall main dealer, 50-60 used car set up and 3 salesman. He has told me that his employers have targeted him with a stock turn of 2 x month??. Does anyone know what the industry norm is or what anyone on here, with that size pitch, or close to is doing? Just seems a bit excessive to me 100+ units a month!

I’ve always been told the industry average is about 8 times a year but some of the high volume Supermarkets have to run minimum double digits. We run at about the average which for what we do I think is pretty good. This target they’ve set seems unrealistic to me. 

[shaunandelly 1]

Back in the deep dark 80’s a salesman would be knocking up those sort of numbers in a main dealer Ford/Vauxhall/Peugeot on new in August. Three lots of 30 or 40 a piece! Hello by the way.

[Rob H 0]

4 hours ago, Beautiful South Martin said:

A pal of mine has just started as used car sales manager at a local Vauxhall main dealer, 50-60 used car set up and 3 salesman. He has told me that his employers have targeted him with a stock turn of 2 x month??. Does anyone know what the industry norm is or what anyone on here, with that size pitch, or close to is doing? Just seems a bit excessive to me 100+ units a month!

I stock 35-40; there’s me, but I’m part time as out buying, looking after workshop etc, and 2others and we’re generally pretty busy selling about 30-35 per month

Doing some maths  and at 2x per month that’s 24 for the year and sales of around 1400 with a team of 3? seems very steep to me, probably high volume supermarket levels, but as Dan W says above it’s doable if profit isn’t the driving factor. If that’s their only measure of success and his target is purely volume sales and stock turn he’s OK as long as he has the freedom to price and re-price realistically. I’d be very surprised if that was the case though. How much autonomy as manager does he have. He needs to ask them about PPU in conjunction with how fast he sells, what are the sites profit targets or what do they look to achieve per unit, also sourcing stock, replacing the cars at 2 x stock turn would be my concern, does he have a say in what type of cars to stock, how in demand are they, how competively priced will they be. Also whereabouts in country he is is a factor, I’m in Midlands so lots of chimney pots, is he in the wilds of Scotland or Cornwall? And what marketing support does he have? In short Martin, I think he needs to draw up a business plan, talk to others like you and then sit down with his bosses and come to some agreement

hope this helps pal

[Gary Williams 0]

I work with over 300 independent used car dealers in the South and stock turn varies. 8 x per year would be considered the industry average. Depending on margins I’ve seen higher and lower ratios but 24 x per year is unbelievable.

[trade vet 702]

1 hour ago, shaunandelly said:

Back in the deep dark 80’s a salesman would be knocking up those sort of numbers in a main dealer Ford/Vauxhall/Peugeot on new in August. Three lots of 30 or 40 a piece! Hello by the way.

That's right,past glories !,I recall being camped at main dealers from 11.30 pm for the midnight handovers in order  to get the swappers!.....apologies again to the new millennial traders.

[trade vet 702]

4 hours ago, Dan W said:

Can be done, pretty easy to piss away vehicles for no profit.

Vauxhall dealer across from us sell used cars sometimes with £50 profit it in hoping for add ons, just need to ask the question why bother

I can believe that,especially if they are part of a PLC.Have you noticed,when these guys announce their latest results,they prefer to emphasise an increase in sales T/O dressed up as good news, rather than the bottom line which has often got worse.Investors and market anylists can then take the view that if sales are increasing,profit increases will naturally follow. Then both the  share price and the share options of the directors are protected  but they will have to repeat the charade next time round.Next year they will probably bullshit that their results ( which might be bad) are perfectly acceptable having factored in the effects of Brexit etc........

[umesh 336]

3 hours ago, Gary Williams said:

I work with over 300 independent used car dealers in the South and stock turn varies. 8 x per year would be considered the industry average. Depending on margins I’ve seen higher and lower ratios but 24 x per year is unbelievable.

Gary , that's my thoughts too - as you say depending on stock type /margins etc! 24 a year impossible in my opinion! ..but loved to be proved wrong. 

[Mat C 77]

Back in PLC world 8 x stock turn was the benchmark, any lower, you were sh1te and any higher you got a b0llocking for p1ssing everything away. 

I benchmark myself at 12 x , we stock around 13/15 cars and on average sell 13/15 a month, so I'm happy with that. I am rigorous with my stock though, Check prices and enquires / hit rate pretty much daily, re price and get it gone before 90 days old, I guess thats the PLC in me still as we used to get fined for cars over 60 days and then again at 90 days....

[Arfur Dealy 823]

80% for me, will hit that this year, with no viewings or timewasters.  

[grant8064 219]

My stock turn is appalling compared to some of you guys. I literally have no interest in turnover though, I could sell them all tomorrow if I put nothing in them.

Much more interested in earning proper money per unit, selling less and being picky with who I sell them to. Whats the point selling 100 cars a month when 30 will net you the same profit with two thirds less potential issues and comebacks and only a third of the prep work to do?

Turnover is pure vanity IMO. Profits pay the bills.

(your mates job sounds like pure headaches and stress to me...easier ways to make a living)

[Ocsltd 133]

6 minutes ago, grant8064 said:

My stock turn is appalling compared to some of you guys. I literally have no interest in turnover though, I could sell them all tomorrow if I put nothing in them.

Much more interested in earning proper money per unit, selling less and being picky with who I sell them to. Whats the point selling 100 cars a month when 30 will net you the same profit with two thirds less potential issues and comebacks and only a third of the prep work to do?

Turnover is pure vanity IMO. Profits pay the bills.

(your mates job sounds like pure headaches and stress to me...easier ways to make a living)

My thoughts exactly.....! 

No point being a busy fool!! 

[Rory RSC 596]

15 hours ago, Mat C said:

Back in PLC world 8 x stock turn was the benchmark, any lower, you were sh1te and any higher you got a b0llocking for p1ssing everything away. 

I benchmark myself at 12 x , we stock around 13/15 cars and on average sell 13/15 a month, so I'm happy with that. I am rigorous with my stock though, Check prices and enquires / hit rate pretty much daily, re price and get it gone before 90 days old, I guess thats the PLC in me still as we used to get fined for cars over 60 days and then again at 90 days....

I think thats a really good mentality to have and a strong approach. Obviously working aswell.  

 

[lastyboy 23]

On 11/11/2017 at 6:51 PM, Mat C said:

Back in PLC world 8 x stock turn was the benchmark, any lower, you were sh1te and any higher you got a b0llocking for p1ssing everything away. 

I benchmark myself at 12 x , we stock around 13/15 cars and on average sell 13/15 a month, so I'm happy with that. I am rigorous with my stock though, Check prices and enquires / hit rate pretty much daily, re price and get it gone before 90 days old, I guess thats the PLC in me still as we used to get fined for cars over 60 days and then again at 90 days....

Pretty much agree with that. I stock 10-12 but always 3 or 4 coming in so could argue its nearer 15. Sell 15 to 20 normally per month. But 20 years trading and a lot of repeat business

[sparky 274]

On 11/11/2017 at 6:51 PM, Mat C said:

Back in PLC world 8 x stock turn was the benchmark, any lower, you were sh1te and any higher you got a b0llocking for p1ssing everything away. 

I benchmark myself at 12 x , we stock around 13/15 cars and on average sell 13/15 a month, so I'm happy with that. I am rigorous with my stock though, Check prices and enquires / hit rate pretty much daily, re price and get it gone before 90 days old, I guess thats the PLC in me still as we used to get fined for cars over 60 days and then again at 90 days....

I know you have mentioned that before and it's an interesting mind set to have, and as Rory says it clearly works. I guess that means taking the emotion out of what you have, which is fair enough on the bread and butter stuff. But your stock has a bit of emotion in it and some of it must be difficult to source. So, would you still apply those principles to to a fancy rare as rocking horse cooper works for example?

I don't bother much with stats and repricing and my view has tended to be there is an arse for every seat so let it sit there, partly because I've got so much space. It's worked to a point but I know I need to embrace such pricing and days in stock policies as yourself and maybe find the middle ground. As ever though in life, a change in mind set is easier said than done.

 

[Mat C 77]

31 minutes ago, sparky said:

I know you have mentioned that before and it's an interesting mind set to have, and as Rory says it clearly works. I guess that means taking the emotion out of what you have, which is fair enough on the bread and butter stuff. But your stock has a bit of emotion in it and some of it must be difficult to source. So, would you still apply those principles to to a fancy rare as rocking horse cooper works for example?

I don't bother much with stats and repricing and my view has tended to be there is an arse for every seat so let it sit there, partly because I've got so much space. It's worked to a point but I know I need to embrace such pricing and days in stock policies as yourself and maybe find the middle ground. As ever though in life, a change in mind set is easier said than done.

 

Its been drilled into me for 20 years, theres a reason why every company i've ever worked for has a strict stocking policy, is because it works. Cars don't go up in value, ( however I do put mine up in price sometimes )  so as far as i'm concerned I need to move it asap. We have had some real strange ones stick over the last year, a beautiful Green Cooper SD, up on miles but a lovely 1 owner example, great spec and beautiful condition, sat here without the door being opened for weeks, but that MY ££££ sat there, rotting, doing nothing, I need to make it work harder for me, thats my opinion. So I gradually kept creeping the price down and then all of a sudden, bang, the phone rings. 3/4 people interested in it. In my view, there is a man for every car, however you've got to find him, or more importantly, he's got to find you!!!! But it also has to be priced right. People these days are so price focussed, and without a showroom presence, we are destined to always be keenly priced until I fond my 30 car roadside pitch. We just don't have the space ( and funds ) to have cars sat around for weeks on end.... get the £££ back in the bank and get it invested in something else!

Don't get me wrong, I do premium price my stock for the first 10/14 days and splash it about on facebook. At the minute I have a 1 off, JCW thats been locally owned by a MINI Employee, best i've seen, and tastefully modified, so its priced way above market, i've been told its too expensive by the facebook experts ( the ones that can't afford it ) however i've had 4 enquiries on the car in the first 10 days and an appointment on it this morning. 

We've also been bitten by being too proactive and advertising stock we don't own yet, like a PX coming in or an existing customer wanting to sell back to us after a few months, This happened the other day, we'd sold a JCW that was due to come in from a local guy, that we'd sold a few months back, he'd had a chance in circumstances and neede out of the car, we re advertised it before it came in, sold it first day and had everything lined up for the weekend. Friday comes, he calls me and says his wife can't part with it so they're keeping it..... ARGHHH 1 very p1ssed off customer on the other end, however its now our job to find her another car ( if there is one! )

But thats the way I work, it needs to be prepped, cleaned and advertised within 24/48 hours of it landing with us. Again in PLC world if my stock wasn't in, photo'd and on the pitch in 48 hrs you'd get fined. Unless it needed bodywork, which it was then 72 hrs.  I advertise everything within minutes of buying it from auction, by pinching the auction ad pictures too. Just gets it out there as soon as physically possible.

[It's me 615]

3 hours ago, Mat C said:

Its been drilled into me for 20 years, theres a reason why every company i've ever worked for has a strict stocking policy, is because it works. Cars don't go up in value, ( however I do put mine up in price sometimes )  so as far as i'm concerned I need to move it asap. We have had some real strange ones stick over the last year, a beautiful Green Cooper SD, up on miles but a lovely 1 owner example, great spec and beautiful condition, sat here without the door being opened for weeks, but that MY ££££ sat there, rotting, doing nothing, I need to make it work harder for me, thats my opinion. So I gradually kept creeping the price down and then all of a sudden, bang, the phone rings. 3/4 people interested in it. In my view, there is a man for every car, however you've got to find him, or more importantly, he's got to find you!!!! But it also has to be priced right. People these days are so price focussed, and without a showroom presence, we are destined to always be keenly priced until I fond my 30 car roadside pitch. We just don't have the space ( and funds ) to have cars sat around for weeks on end.... get the £££ back in the bank and get it invested in something else!

Don't get me wrong, I do premium price my stock for the first 10/14 days and splash it about on facebook. At the minute I have a 1 off, JCW thats been locally owned by a MINI Employee, best i've seen, and tastefully modified, so its priced way above market, i've been told its too expensive by the facebook experts ( the ones that can't afford it ) however i've had 4 enquiries on the car in the first 10 days and an appointment on it this morning. 

We've also been bitten by being too proactive and advertising stock we don't own yet, like a PX coming in or an existing customer wanting to sell back to us after a few months, This happened the other day, we'd sold a JCW that was due to come in from a local guy, that we'd sold a few months back, he'd had a chance in circumstances and neede out of the car, we re advertised it before it came in, sold it first day and had everything lined up for the weekend. Friday comes, he calls me and says his wife can't part with it so they're keeping it..... ARGHHH 1 very p1ssed off customer on the other end, however its now our job to find her another car ( if there is one! )

But thats the way I work, it needs to be prepped, cleaned and advertised within 24/48 hours of it landing with us. Again in PLC world if my stock wasn't in, photo'd and on the pitch in 48 hrs you'd get fined. Unless it needed bodywork, which it was then 72 hrs.  I advertise everything within minutes of buying it from auction, by pinching the auction ad pictures too. Just gets it out there as soon as physically possible.

good post

my only caveat is always give them a drive first no matter how mint,i had one last week all ready and on the pdi test drive the clutch slipped

[have a word with the wife 299]

"turnover is vanity, profit is sanity, cash is a reality"

[ASP 1]

6 hours ago, tradex said:

He bought another local private Scooby with a whining rear box in top and rang back for advice....."take the box out, repair it and fit a new clutch while its out"

"No sorry I can't pass you the details of our shit hot clutch/gearbox man, that's proprietary information sir" and he huffed n puffed like the Flying Scotsman.

Haha, good post Tradex. Bit worrying that a Volvo truck mechanic wouldn't change the box and clutch himself. I've changed a clutch on axle stands on my gravel drive...