Max Branning 149 Posted July 29, 2015 So how long do you usually hold stock before reducing the price or offloading to auction? I had a car recently that had been with me for 6 months that i stuck out for the asking price (cap retail) i got sick of seeing it every day so reduced the price by £300 to try and get it moving - it still sat for 2 weeks without a sniff so i thought you know what reducing the price is making no difference so i put the price back up to its original asking price. The very next day someone walked in and bought it at the full original price !This has got me thinking that sometimes reducing the price is not always a wise move and holding out for what you think is fair is the way to go how does everyone else handle stock thats hanging about? Share this post Link to post Share on other sites
Gavin@Rousdon 137 Posted July 29, 2015 Price check it a 30 days, reduce at 60 days, get gone at 90 days Share this post Link to post Share on other sites
umesh 336 Posted July 29, 2015 Not always about price or dropping prices - I Try to stick it out.... but like all us ...the odd one does like to stay longer ! Gavin do you trade it ? auction it ? or simply drop price to retail it instead of trading /auctioning it ? Share this post Link to post Share on other sites
Gavin@Rousdon 137 Posted July 29, 2015 Umesh....I would trade or do a swap but there aren't really any dealers around here to do that with!!In reality I drop the price to get it gone. A car is just a unit offering a potential for profit. You can leave a car sat there for 6 months and take a decent profit or you could trade it and reinvest the money in the hope you turn over the next car quickly, selling 2 cars and trading one in the time it could take to sell the original one. Some cars I may hold to a bit longer because I have faith in them, things like 4x4 coming into winter or something oddball in a marmite colour which is priced well. 1 Share this post Link to post Share on other sites
Philip Nothard 26 Posted July 29, 2015 This is certainly something I talk about a great deal and as some of the guys know, try not to 'preach' about - as all dealers are unique and there isn't one solution. I have demonstrated and discussed many times; that continual price reduction could work against selling it and each individual vehicle has a 'price'. Much is dependent on cash flow restrictions and stocking policies. I know PLCs that work on a 56-day and are looking to reduce this on the sub 12-month product, due to volatility in the current market. An example recently with a large dealer group, they couldn't understand why a fleet a buy-back Clio's weren't selling, even though they continued to reduce in price and were the cheapest in the UK by hundreds.......... the reality is that the consumers had seen them continually reduce, created caution why they were so cheap and the sales teams didn't want anything to do with them.I suggested they removed them from for a week or so, then change locations, re-image them and re-write the descriptions but most importantly put them back up in price to the average market value. GUESS WHAT - they sold......As Umesh demonstrates time after time, the right car will sell, and can retain a reasonable margin, but if it's a volume product, with high competition and in continuous supply, then fast turn and price positioning may be the key.A Vauxhall Corsa in a popular high volume trim may turn on average every 15-days across the network; whereas something along the line of an S80 may only turn every 70-days on average across the network...therefore, how does a 60-day stocking or every 30-day repricing policy manages both these products? Always welcome a chat and more than happy to share and discuss insight and data - if it helps :-) I'm not at the coal face though.... 2 Share this post Link to post Share on other sites
Steve92 80 Posted July 29, 2015 Sometimes it's price driven, although Sod's law is usually when someone puts a deposit on a car the whole world then wants it. Share this post Link to post Share on other sites
Gavin@Rousdon 137 Posted July 31, 2015 (edited) An example recently with a large dealer group, they couldn't understand why a fleet a buy-back Clio's weren't selling, even though they continued to reduce in price and were the cheapest in the UK by hundreds.......... the reality is that the consumers had seen them continually reduce, created caution why they were so cheap and the sales teams didn't want anything to do with them.I suggested they removed them from for a week or so, then change locations, re-image them and re-write the descriptions but most importantly put them back up in price to the average market value. GUESS WHAT - they sold...... Maybe that is more the problem, unless the cars are sub-standard why should a sales person not be motivated to sell them, I hope a few P45's where handed out!!! Also moving location is fine, but smaller independents don't have that luxury but I agree re-imaging cars is always worthwhile, I'm amazed how many poorly imaged vehicles are on the internet. Edited July 31, 2015 by Gavin@Rousdon Share this post Link to post Share on other sites
It's me 612 Posted August 1, 2015 my record is 13 months before i officially call it a landmark,normally 6 weeks and i get panicky and start totting up the failed advertising bills and looking why its still here and come again to the conclusion oddballs really should be left for others and just buy the top 10 second hand wanteds in best colours but who cant resist that ford in death blue at the end of the auction Share this post Link to post Share on other sites
sparky 274 Posted August 3, 2015 my record is 13 months before i officially call it a landmark,normally 6 weeks and i get panicky and start totting up the failed advertising bills and looking why its still here and come again to the conclusion oddballs really should be left for others and just buy the top 10 second hand wanteds in best colours but who cant resist that ford in death blue at the end of the auctionAt least you get some profit out of an oddball. Every now and then I have a moment of weakness and buy a top tenner (usually a Corsa SXi) and end up regretting it when I only make a drink out of it. Sad thing is, I know I'll do it again like I'm back in 1999 when the current rules of engagement didn't apply. 1 Share this post Link to post Share on other sites
Phil H 124 Posted August 4, 2015 (edited) I've got a little combo that I've had since last February (2014) now but similar ones are still doing the same money under the hammer today so what's the point of mugging it away only to buy another one that needs prepping. Edited August 5, 2015 by Phil H 1 Share this post Link to post Share on other sites
SC Derby 259 Posted August 5, 2015 (edited) I've been thinking about this a long time and have analysed previous sales, length of turn oves and other bits including margins and prices paid for vehicle.I am now implementing the following strategy due to space being at a premium.Proper margin for 6 weeks, will only adjust if response rate is at the floor.Reduced margin for a further 4 weeks, hopefully this should bring in the buyers.After 10 weeks if not sold at reduced margin, then price to clear and get money back, re stock and move on. Edited August 5, 2015 by RCSALES 1 Share this post Link to post Share on other sites
sparky 274 Posted August 5, 2015 I've been thinking about this a long time and have analysed previous sales, length of turn oves and other bits including margins and prices paid for vehicle.I am now implementing the following strategy due to space being at a premium.Proper margin for 6 weeks, will only adjust if response rate is at the floor.Reduced margin for a further 4 weeks, hopefully this should bring in the buyers.After 10 weeks if not sold at reduced margin, then price to clear and get money back, re stock and move on.I need to implement some sort of strategy like this, problem is (and it's a good problem in a way), is that I'm never short of space as I have quite a big forecourt which leads to me being somewhat lackadaisical about cars being sat. Another problem I have is that get too emotionally attached to cars. Like many, I fight tooth and nail to try and buy the right stock so to get rid after 10 weeks or so would be hard. I know what your doing is right, but bugger me it's going to be hard to do. May I ask, how do you get rid once 10 weeks is up and do you ever take a blow and also, if space wasn't at a premium would you still implement this strategy? Share this post Link to post Share on other sites
SC Derby 259 Posted August 5, 2015 Yeah I would still do so if space wasn't at a premium because it's not nice having the same car on your website even for months on end is it really?normally when you drop a car to what you paid for it or thereabouts the phone rings on it so you shouldn't really lose money in theory apart from cost of advertising and storage in the time you've had it, only if you have paid way too much in the first place could I see a problem?? 1 Share this post Link to post Share on other sites
Tom 164 Posted August 5, 2015 I just sit on mine until they sell sometimes I drop them down a bit if they have been sat a while (over 3 months) otherwise I'll just wait. Share this post Link to post Share on other sites
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