This last couple years has made being Drunk on Success easy.
The next couple will be a HANGOVER FROM HELL
Here's my thoughts on some remedies
(💡 Hint- You're not gonna find it at Digital Dealer in Vegas this week)
Nausea already started and most dealers should invest in high quality Scuba Gear because they are so far underwater (you'll need to catch your breath and think if you rely solely on tech and auctions)
The days of just running cars to the auction like it's your own personal money factory are done. Valuation tools are going to TILT like 70s pinball machines
You will continue to see lane efficiency plummet.
Buyers know that most of you don’t have any other way out and that you can only wait so long before that inventory toilet backs up. ("We'll starve 'Em out)
TradeRev, ACV and the like won’t be much better….But at least you can have an insurance bid so that you can try to make your new car deals with a guaranteed out because you have no room in the lake
Wait until whoever does your Floor Plan tightens up…..
Things to do right now
🎯 Re-train whoever appraises your trades. Or hire someone that knows how. Not just flip open a valuation tool and pump in a VIN. An actual expert appraisal with a test drive and eyes and ears that know what to look out for. Maximize EVERY SINGLE opportunity and safeguard against problems.
🎯 Create your own in-house VBC (Vehicle buying center) and focus your marketing efforts locally
🎯 Hire a Wholesale Director and pay through the ass to get him if you have to. Someone that has a fat Rolodex and has been through some cycles. Deal Makers. You know who I'm talking about. You just thought of the best one you ever knew. They still exist but they are on the critically endangered species list.
🎯 Focus the majority of your marketing efforts on LOCAL/ NURTURE initiatives. The absolute top of the funnel. Become known to people not yet in the market and hold their hand all the way down that funnel until they are in market (This is probably the most valuable investment you can make right now). (RIP-VDP)
🎯 Make Customer Experience (CX) your number one priority. This doesn’t need to cost much but comes right from the top.
🎯 Culture/ Teamwork between your New Car and Used Car management needs to be like the '86 Celtics
If you are a wholesaler that has Hung in all these years. Good for you. You're about to get rich...Call me ;-)