Trade value all comes down to what the demand is for an item. If you don’t know what you already have, how can you know what might be missing? Plus, if you have an excess of something, you’re not going to have as much profit potential because you’re offering multiple units. What's more, is that you might offer more than you should on a trade without realizing it if you don’t know what's in your inventory. That's where your inventory management tool can make all the difference.
Inventory management is something that should already be integrated into your dealership platform. This tool should be connected to the rest of your AI platforms and be accessible by all departments across the dealership. It should be managed by the right people, and your used inventory should have its own dedicated team to handle inventory management and monitoring.
How to Use Your Tools Effectively
As with anything, you have to have a plan to be able to use your tools well. Take advantage of any and all software platforms that you have that will allow you to “trade up” your used game. Look at how you’re already using your inventory management solution to handle new sales and other day-to-day business. Now, imagine being able to put those same efforts to work for your trades—your profits are going to come quite easily if you do things according to plan.
If you are seeking the control that comes with the used inventory and trade process, that’s going to require using your tools effectively to reduce expenses, improve profits, and make sure that you’re making good trades and transactions in the first place.
Why Inventory Management Matters
If you’re dealing with trades, you need to know what you’re getting, what you have, and what’s going to sell. The only way you can find that out is by looking at your history and your inventory. Thus, if you are going to be effective in trade-ins, your inventory management tool is integral to the process. If nothing else, there’s no sense in buying something on trade that’s not going to sell. Of course, you might also find a hole in your inventory that makes a particular trade worth chasing or paying a little more for.
It's all about having the entire picture when it comes to managing your inventory for the sake of trades and used sales. Take advantage of the tools that you have to get an overall idea of where things stand so that you can make the best trade decisions every time.