May, 04 2020

How Your Dealership Inventory Management May Be Losing Potential Sales

Ivan Mishanin
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Imagine John and Jane go to your dealership to buy a car. They know what kind of vehicle they want to test drive and you think you may have the vehicle in stock.

The big question may be, where is it on your lot?

After waiting in the lobby for 20 minutes while your team may be scrambling to track the location and status of the vehicle on your lot, the couple decides to leave and go next door to another dealership.

Quick vehicle location leads to happy customers and more sales

Here’s what you may lose when a customer walks away due to disorganized dealership inventory management:

  • Potential sales
  • Loyalty and future sales from that customer
  • Referrals to your dealership from that customer
  • Positive reviews for your dealership

You may also lose out on test drive opportunities when your vehicles aren’t properly fueled. For dealerships that manage service loaner car fleets, mismanaged inventory and tracking of mileage and GPS can also turn off customer relationships, as well. Speed matters in the automotive industry in more ways than one.

Many car dealerships don’t take advantage of a vehicle inventory management system, even though it may be a great way to boost customer experience at your dealership. How could you avoid losing out on sales and boost customer experience at your dealership with connected inventory management featuring GPS car tracking technology?

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The Numbers: What You May be Losing When Customers Leave

Sales inventory management affects customer sentiment and may help you close the sale. In our experience with dealerships in several states of  the United States and based on the NADA report, we observe:

  • Average sales team size:15-18 people
  • Average sales per salesperson: 10 units/month
  • Average vehicle price: $36,000
  • Average gross margin per sales: $2,000-$3,000

Now, let’s say a dealership is losing around 15-25 sales per month (1-2 per salesperson) due to customers leaving dealerships when vehicles can’t be located or when cars aren’t ready to test drive because the battery is dead or they’re low on fuel.

That adds up to losing around $570,000-$950,000 in revenue per month.

Can you afford to miss out on profits like these?

What if you had a solution that showed you exactly where every vehicle was on your lot instantly, as well as how much fuel each one had so you knew they were ready to be driven off the lot?

You may retain not only that revenue and profits, but you may also keep those customers coming back in years to come. Multiply those numbers by however many referrals you get from satisfied customers, and there’s even more value in keeping customers happy.

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How Zurich Connected Cars Inventory Management Works

User-Friendly Web Portal Replaces Your Outdated Car Inventory Management Software

 Zurich Connected Cars is a technology-driven, turnkey connected car inventory management solution. After the plug-n-play dongle is installed in every vehicle, Zurich Connected Cars works on a cloud-based platform to give your entire team total visibility into your inventory and service loaner fleet. It may expedite the vehicle buying process and enables your team to monitor vehicle status at all times.

Zurich Connected Cars provides these features:

  • Search vehicles by VIN and/or stock number
  • Locate any vehicle in real time
  • See vehicle trip history and mileage
  • View geo-fence locations
  • View battery and fuel levels and get push notifications when the battery or fuel is low
  • Receive emails/push notifications with a vehicle is moved after hours or outside a geo-fenced zone

Using Zurich Connected Cars provides the following benefits:

  • May helps dealerships sell more cars more efficiently
  • May increases the number of test drives a dealership can offer each day through fast vehicle location
  • May helps dealerships avoid lost sales due to vehicle readiness and availability
  • Increases sales team efficiency by decreasing the time needed to locate vehicles
  • Provides insights into vehicles that are located in off-site lots
  • Helps dealerships maintain proper fuel and battery levels of all vehicles in inventory.
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Zurich Connected Cars costs less than $20 per vehicle per month (see our complete pricing options).For a lot that has 300 vehicles, that’s $6,000 per month. As you may retain customers and sell more cars, you could see a return on your investment in as few as 3-5 days every month.

Get Connected — and Stop Losing Sales

If you want to see how Zurich Connected Cars can work for your dealership, contact us for details. 

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