Continuing yesterday’s theme of comparing/contrasting two nearby same-brand dealerships, I thought I would share another interesting insight from one of my calls today with a dealership on the west coast.
In this case, it was a small Mazda store that sits in a very competitive market.
As we analyzed this dealer’s local market, we identified a nearby Mazda store of a similar size that had a very well-run used car operation. Although this competitive store had a relatively small lot size, they were selling their used vehicles in an average 19.4 days on the lot, which equates to 18.8 turns per year.
The interesting insight that we discovered while walking through the CompetitorPro product was how this dealer had found a strong opportunity in stocking used Subaru units.
See below for two views that contrast the competitive store’s inventory/sales (in blue) vs. our store’s current inventory (in orange). I have masked the identities of these two dealerships.
1. First, take a look at the competitor store’s used sales (last 45-days) by Make/Model compared to our store’s current inventory. See any recurring themes? Remember that both of these stores stock fewer than 100 used vehicles, so volumes like this are significant.
2. Second, we then looked at the competitive store’s current inventory, and they’ve clearly bet (wisely) on used Subaru product continuing to perform well in the short term:
The last insight here is that our store (in orange) is only currently stocking one used Subaru.
These two dealers carry the same brand, are in nearly the same location, and have the same sized lots. Needless to say, our dealer is now actively looking to stock some additional used Subarus!
At CompetitorPro, I get to spend time every day reviewing the performance of progressively-minded dealers who want to find competitive edges to increase performance in their local markets. I’m very excited to be able to bring to market a software tool that translates a vast amount of data (7M individual vehicle VINs per day) into intelligence software that helps dealers improve their operations and profit.
I’ll continue sharing some of the more interesting insights that we stumble across each day.