We were talking last week to a west coast BMW store located in a major city that has a very large competitor located just down the street. (Note: the identity of these dealerships has been masked for this article).
As we walked through a comparison of the two stores, we were looking to identify insights from the market-leading store that we could apply to our smaller BMW store.
We started off with our store’s new car inventory and sales vs. all local competitors. It was clear that our store was one of the smallest, in terms of both inventory and sales:
Next, we decided to drill down into the largest player’s new car operations. This competing store was stocking 721 new units, and had sold 304 over the past 30 days:
We then took a look at the new vehicle inventory aging profile of our two stores. It was immediately evident that the larger competitor store’s inventory distribution was much healthier than our targeted store. For example, our store had 45% of new vehicles aged over 91 days, while the competitor store had only 26% of their new vehicles in this same oldest aging bucket:
Drilling one-level deeper, we looked at “Stocking Gaps” (units that were selling well for the market leader that our store wasn’t stocking). One of the units that immediately stood out was new BMW X1s – the market leader had sold 33 over the past 45 days, while our targeted store only had 8 currently on their lot:
Finally, we looked at the configuration of the units that the larger store was carrying, to see if they had any specific vehicle configurations that were selling well that our store wasn’t stocking. We found a large stocking gap: 16% of the market leader’s X1 sales were Gray, and our store currently had zero in stock.
Within 15 minutes, we were able to compare our store vs. the market leader, draw insights around what they were stocking/selling that we weren’t, and provide actionable stocking insights that will help improve our dealership’s new car operations.
CompetitorPro provides dealers with a clear picture of the vehicles moving in their local market to help them stock and rebalance their inventory accordingly. The data is real-time and accurate, and the insights help dealers run their operations successfully.
To outperform your competition and grow sales, revenue and profit, you need to know exactly what’s happening in your market right now. With CompetitorPro, you’ll have access to the industry’s most powerful live market data, so you can price and appraise more competitively and efficiently. You can start selling cars more quickly, earning more profit and growing your business.