The KPI’s you should be tracking in yourused vehicle operations
Webinar - April 7, 2016Jörg Höhner, Global Managing Director INDICATA
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In a time wheresupply and demandchanges faster thanever, data-driveninsights are vital todrive your usedvehicle business togrowth.
DAZZLING SUCCESS OR STUNNING FAILURE
FIVE STEPS TO WINNING KPIs
123
4
5
Start with strategy
Allign numbers
Get specific
Define actions
Keep improving
MARKET DAYSSUPPLY
PRICE TOMARKET
INVENTORYAGE
PRICINGSTRATEGY
STOCKTURN
SHARE OVERFIRST PRICETO MARKET
NUMBER OFPHOTOS
KPIs TO GUIDE USED VEHICLE SUCCESS
STOCK TURNCareful stock control to improve operational performance
5,67,4
0,0
2,0
4,0
6,0
8,0
10,0
Nov. 2014 Nov. 2015
Profit Impact:€ 38.400
Small Dealer
6,68,3
0,0
2,0
4,0
6,0
8,0
10,0
Nov. 2014 Nov. 2015
Profit Impact:€ 180.300
Mid-size Dealer
7,3
9,2
0,0
2,0
4,0
6,0
8,0
10,0
Nov. 2014 Nov. 2015
Profit Impact:€ 1.140.700
Large Dealer Group
MARKET DAYS SUPPLYMeasures the relationship between supply and demand today
120
SupplyTotal number of vehicles currently available
DemandAverage number of vehicles sold per day
60
MARKET DAYS SUPPLYHow can Market Days Supply help protect residual values?
VolumeDistribution
PricingStrategy
GERMAN PREMIUMMANUFACTURER
JAPANESE VOLUMEMANUFACTURER
EUROPEAN VOLUMEMANUFACTURER
1 - 3 0 d a y s
3 1 - 6 0 d a y s
6 1 - 9 0 d a y s
9 1 + d a y s
INVENTORY AGEMinimize the profit harming effects of increased market volatility
22%
13%
13%
52%
28%
15%
12%
45%
29%
18%
13%
40%
105 % 5% above Price to Market100 % Average Price to Market95 % 5 % below Price to Market
Nøgletal
PRICE TO MARKETAssess the price position of your inventory
Price/Market
MDS
97 50100 74101 15099 217
Price/Market
MDS
103 6098 6095 60- -
Days instock1-30
31-6061-9091+
Typical Ideal
PRICING STRATEGYKnow when Market Days Supply is in your favour
Attractive carspriced too low
Identify network dealers whoconsistently price below the
market
Identify network dealerswithout “rational” pricing
strategy
Know when Market DaysSupply is in your favour
„Discount“ dealers Fresh inventorypriced lower than old
Attractive cars pricedtoo low
PRICING STRATEGYTop 3 dealer pricing strategies undermining profitabilty
SHARE OVER FIRST PRICE TO MARKETIdentify and manage deprecation risk of your inventory
Avrg.Price/Market
102%
Total InventoryValue
€ 8.426.359
Share Over FirstPrice/Market
37%
Value @ Retail Asking Price € 3.754.629Depreciation Risk Next Month € 56.319
TOO FEW PICTURESManage the ideal photo count