Last week, David Long and his All Things Used Cars community welcomed Brian Kramer and Diego Vargas to share their wisdom and practical guidance regarding active management, strategic adaptation, and constant vigilance. Here are some key points from the discussion:
Data-Driven Decision Making: With the automotive industry's constant evolution, using real-time data and leading indicators like 'days on market' are crucial for anticipating shifts and informing decisions. This includes understanding your dealership's key 'vitals' or metrics and proactively maintaining its health. Similarly, looking beyond immediate data and predicting long-term market factors can help avoid unexpected shifts. Remember to use multiple data points to sidestep false positives or negatives and avoid making your Key Performance Indicator (KPI) your sole strategy.
Embracing Technology, but Don't Wholly Rely on It: While AI and technology can level the playing field, human intelligence is vital for navigating real-time changes and market nuances. Technology should be used as a tool to enhance decision-making, not as a complete replacement for human judgment.
Strategic Planning and Risk Management: Establish a well-defined acquisition strategy outlining the vehicles to invest in, the associated risk, and your dealership's target day and dollar supply. Being aware of external factors, such as manufacturer price drops and new model releases, can help in adjusting pricing and buying strategies quickly. It's essential to avoid trying to time the market; instead, rely on your strategic plan backed by the right data.
Adapting to Market Trends: Stay updated with shifting market realities, including fluctuating vehicle values, and adapt your strategies accordingly. Monitor trends in emerging markets like Electric Vehicles (EVs) due to their unique market dynamics, which can impact your acquisition strategy.
Staff Training and Clear Communication: Ensuring your team understands and effectively uses data is crucial, as is clear communication about your dealership's objectives. Also, make your team aware of inherent biases that could influence their decision-making. Implement a 'prevention plan' that acknowledges changes or potential issues and includes actionable steps to mitigate those challenges.
Listen to the full replay on Clubhouse.