Uncommon Solutions—How to Use Inventory Shortages as an Opportunity for Growth
These days, dealers and managers are facing significant inventory challenges, like inflated used car prices and dwindling new car supply. When cars are hard to find, the last thing most dealers think about is marketing to attract more customers. Who needs more customers when you’re out of inventory, right?
Hit the brakes!
Though all of that seems to make perfect sense, it’s completely wrong. Here’s why:
When inventory is tight, most dealers cut back their marketing. This is exactly the right time to capture market share, when other dealers aren’t focused on attracting customers.
What’s more, when you advertise using a solutions-based message, instead of a low price message, you’ll automatically attract customers who are far less price-conscious, allowing you to charge more for the vehicles. It’s simple math, if you can sell cars for more money than other dealers, you can afford to buy cars for more money than other dealers. The ability to pay more for cars and still turn an excellent profit is a secret weapon and a tremendous competitive advantage that nobody is talking about.
See, you can’t control inventory allocation from the factory. You can’t control prices at the auction. You can’t control the economy, gas prices or unemployment. But you can control your own marketing message and your own marketing strategy.
The most profitable dealers harness this reality, and when other dealers are facing inventory problems they leverage the problem into an opportunity to scoop up more market share by aggressively promoting a solutions-based message. This, in turn, attracts a much higher number of customers (including many buyers who are less price-conscious) and allows them to sell cars at higher prices creating a cycle of growth and profitability, in a time when other dealers are struggling, and releases the dealer from the typical burden of inventory challenges.
Always remember: doing things the way everyone does things is a sure way to get what everyone gets. Approaching common problems from an uncommon perspective allows you to create solutions that most dealers will never experience.
Jimmy Vee and Travis Miller are the co-authors of Invasion of the Profit Snatchers and founders of Rich Dealers®. Get a free copy of their new book at www.ProfitSnatchersBook.com, use coupon code DMM1207.