Trade appraisals are an important part of the cycle and if they’re done incorrectly, they could cost you a significant amount of money. When you do them well, you could increase your profits significantly. Of course, there’s always been a great debate about whether dealerships need a team dedicated to inventory trades, or if they can let anyone handle them just to make the process easier for the customer. It’s a delicate balance and ultimately, it’s going to be about what works best for your dealership. However, there is some merit to having people dedicated to trades and used inventory.
One of the biggest discussions in the industry when it comes to trades is that until recently, they weren’t nearly as popular. Although things are starting to shift a bit with people buying toys and not using them until they can’t be used anymore. That’s the reason that the trade market in Powersports isn’t a hot topic to a lot of people—there didn’t use to be much of one. People bought Powersports units to be used and used them thusly.
That meant there was nothing left to trade at the end of the day. They just cut their losses, sold for parts, or added a new model to their collection without getting rid of the old. Of course, there were still occasional inventory trades here and there, and today that is continuing to grow. In recent years, the changing nature of Powersports buyers and the increasing number of opportunities for upgrades, people are trading in more units and creating a whole new way for you to take control of your profits.
WHAT'S A TRADE TEAM WORTH?
In an ideal world, you’d be able to have every single employee of the dealership handle any possible thing a customer could need, including trades. However, it’s impractical and almost impossible to do this. Therefore, you try to segment things, create departments and teams, and create manageable groups that can provide enough resources to assist more than a single customer at a time.
Give Customer a REASON!
If you only have one salesperson who is well-versed in the inventory trades process and used inventory, they are going to be overwhelmed with work to do. If you have a smaller dealership, you might not need a huge team, but you’ll at least want a few people to handle the work. When you make the trade-in process easy, you’re going to give customers a reason to choose you time and time again.