Jeff Smith is writing a new book: How to make more profit with your used cars
How To Make More Profit With Your Used Cars
Yes, it’s been a long time coming, but now I’ve decided to write this book. I’ve already made a good start on it and I hope to have it published and ready for release later in 2008.
In addition to used cars, there will also be versions for used trucks and used bikes too.
There’s so much surrounding this subject, the question is what should be included and what should be excluded?
I’m assuming that you already know how to stack a deal and you have your own sales processes in place, so nothing like that is being included, it’s more about management and the “Business” of used cars and how to do it better.
If you have an interest in his subject and you’ve got something to say, please leave a comment in the box below. Also, if you think that a particular subject should be included and explained clearly, something such as the importance of stock turn or the impact of the Internet etc, please make your feelings known.
The thing is, the more comments that I receive here, the better the book will be so don’t hold back, please write as much as you want to ensure that your desired subject matter is covered.
Things you might want to consider are:
- stock turn and how to improve it
- how to be more profitable
- liquidation policies, are they useful?
- retailing the law, am I at risk?
- presentation
- preparation
- return on investment
- how avoid overage stock
- what are the do’s and don’ts for success?
Of course there are many other things to cover but my question to you is this…
What would you like to see included in this book? Please make your feeling known in the box below.
Here’s my thank you for your efforts: If you give me any information or ideas that are not already included, or you give me a best practise tip that you use in your business that works well, or even any photographs of good or bad practise, I’ll be delighted to provide you with a signed copy of the first edition of this book on the day that it’s printed. You’ll have the exclusive.
Please keep your ideas and thoughts coming,
My very best regards,
Jeff Smith
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Hi Jeff,
the book looks great, I’ve been wanting you to do this for years! I would like to see a clear explanation of Stock turn and why it is so important! I know how to calculate it but what do I do with the results????
I’d also like to see something on how to sell “more” cars, are you doing anything on that?
Maximising the internet is good as well I don’t think the indusrty has made the most of this resource.
I’ll send you some pictures by email,
all the best,
Tony B
I do not sell used cars, but I would still read your book as (if it is like your other books), the information will be usable for my own new-car contract hire business. Put me on the list and tell me when it’s written!
- Ling
Hi Jeff,
Although it is fast being put into second place by the internet, I think you should look at effective press ads. These days they need to get a customer on the site or direct traffic to the website - how is this best done?
I see so many volume franchised dealers who list every model they have in stock, in every colour. You can assume your local ford dealer will have plenty of focuses!
I think you need to include some do’s and donts about photo’s of vehicles too - what does a customer really need to see to get them to visit?
Technology also means that dealers can track their responses with a range of phone number based tracking systems - important to see if your ad is working for you.
Good Luck!
Hi Tony,
I agree, Stock Turn is a much maligned subject that is completely overlooked by most people, you’ll be glad to know that it’s all fully explained in the book
Jeff Smith
Hi Craig,
yes, the Internet has a huge part to play in all business nowadays, especially the Motor Industry. You be glad to know that there is a complete section in the book about the Internet and how to photograph vehicles and of course digital imaging and how to make your photo’s look stunning.
What I call “Scrapyard” advertising (One car listed on top of another) is no longer effective, you have to appeal to the heart and mind of the used car buyer to get them to your door; if you have some bad examples of “What not to do” I’d love to see them.
You can email me at JeffSmith @ askinsight.com (remove spaces)
Many thanks for your comments,
Jeff Smith
Dear Jeff,
Having now had 20 years experience working with your programmes in one way or another, I feel your knack for making things very simple to understand is key to it’s success, more recently with the “dealership and service KPI’s” I just know this will hit the spot in terms of making the people resposible for this area of the business more aware of how important it is to be one step ahead of the competion and the market, just being able to work out stock turn and days in stock proves a mystery to some managers so I would recommend this latest edition to any managers collect for now and later reference.
This would be a great addition to the already successful service department book.
I am sure that most Managers are vague on how to calculate real used car stock turn and the huge financial impact it has on sales profitability
Can’t wait!!!!!!
The release of this book makes absolute sense not only to the new up and coming managers who will get all of the right guidance from it but also for the long termer’s like myself .All of the my KPI books have been ‘well used’to continually refresh my knowledge on some of the important basics that seem to get lost amid the continual pressure and fast pace of our business.
Every manager working for me will own a copy , not through by being given one but by choice. Knowledge is power!
Hi Jeff.
I know the book would be of great help to many dealers. As you know, in my capacity I now work with many different dealers but most have one thing in common, very little understanding of used car operations. From marketing (as highlighted in this months Profit Builder)to applying basic principles to stocking policies, e.g. is my stock mix right, does it fit my market area, does it fit with what I have previously sold, is the mix profile correct, is the age profile correct? etc. I go away leaving them with lists and action plans, a point of reference would be great.
A consultant once sat in front of me many years ago demonstrating how I could not afford to keep an ageing used car, when I was convinced I could not afford to blow it…wonder who that was?
Also like the idea of the web-site with access to back issues of Profit Builder. Regards, Terry.
Hi Jeff,
As you know 75% of our retail enquiries come from the internet - so to maximise stock turn, the Internet presence has to contain up to date pictures of the actual car, in ‘professional’ surroundings, with as much detail about it as possible.
There must also be an easy method for the customer to contact someone, book a test drive, and purchase on line. Investment in Google analytics is somewhat cheaper than press!.
Also, a small point often missed - cashing in of tax discs on receipt of a trade in,whilst a policy practice with many groups, is not adopted by all. Some peoples insistence on “giving away” a used vehicle warranty, however long, is charitable, but is missing the opportunity of profit.
should we fully prep cars before sale? Always a dilema because we might trade them. Regards Tim.
Hi Jeff,
Used Cars is a vast subject with many different views, I am sure that you will unravel a few areas in your own uncomplicated way and give your readers a better Insight into the Used Car business.
Most managers do not appreciate how much overage stock actually costs so I think Lost Profit Opportunity and it’s calculation would be an eye opener for most.It is quite a simple calculating, but anyone with overage cars does not know it, or they would liquidate them.
If you relay want to make more money from your used cars you must pre-prep all your retail cars as the first customer to see it is probably the best profit opportunity and if the car is “not to retail standard” you will not ob tail the optimum price for the car.
Another big area where we fall down is understanding the Law with regards to used cars? Most dealers “break the Law” every time they offer a car for sale without knowing the legalities surrounding the display and sale of used cars. There are many more “Laws” that we fall foul of and I think a section on Law would be helpful, I know the Law changes but not that dramatically that some common issues can be addressed?
Cheers Mate,
Steve
Hi Steve,
yes, there will some aspects of Motor retailing and the law included in the book. As you say, many dealers are blissfully unaware of what is necessary to protect themselves and it’s a subject that’s always covered in our used vehicle training too. People think that putting “Awaiting Preparation” on vehicle is protection, but in reality, as you know yourself, it’s the worst thing a car dealer can do!
many thanks for your comments,
regards,
Jeff
Dear Jeff,
I think it would be good to include a brief overview of used car market from a customer point of view:
- WHERE do customers go to buy used vehicles(franchise dealerships, car supermarkets etc)?
- WHY (what is the nature of competition between the sellers)?
Kind regards,
Sinisa