I read Dale Pollak’s “Like I see it” every week.
This week he wrote about how dealers proved you don’t need to stock more inventory to sell more cars.
I have heard this from my customers and wondered: What could be the long term potential of this?
Dale says "That, my friends, is an amazing achievement. It means that, for at least the past several weeks, dealers managed their way past and through the perpetual problems of aged inventory, retail net profit losses and sub-optimal profit outcomes that typically follow a stock-more-to-sell-more perspective."
This reminded me - I typically see dealer profit being $1-2M from NADA reports. Will dealer profitability double, triple, quadruple in the long term as we learn that we don’t need a lot in the inventory and less staff means more money for each sales person?
Or will it flip back after the pandemic ends?
Has your inventory gone down but making twice as much or more on each car sold?