The beauty of LiveMarket from a demo perspective is that the data is the dealer’s actual data and it is live; no canned demo data setup to prove a point.
I was with a used car manager of a franchised dealership showing carsales’ LiveMarket product a little while ago. As I dug a little into his inventory in LiveMarket I found an interesting stat. He was only selling from 60% of his inventory, the other 40% were all well over 180 days old.
…other 20 were just a drag on net profit…
So as far as the dealer principle (business owner) was concerned, the monthly units sold, gross and turn were coming from 50 used vehicles when in fact it was coming from just 30. The other 20 were just a drag on net profit as their holding costs keep stacking up.
“why would I change it and risk not making targets?”
I focused on this as I saw it as an opportunity for the used car manager to improve his business (and his standing in the business) by pricing to the market to improve velocity (sell from the entire inventory) and ultimately improve overall gross. I was wrong.
“I’m consistently meeting my sales and gross targets with the stock mix I have now, why would I change it and risk not making targets?”. Fair point.
What would the dealer principle, the owner of the business, want though? If he could see the used car mix through the lens we were looking at I know what he’d want and so did the used car manager!
The decision was made though. LiveMarket wasn’t for him. He was happy meeting his goals and didn’t want “extra work”.
I learnt four lessons from this process:
1. Giving a more complete picture of a business through data isn’t for everyone.
2. As a business owner you need to have the data to be completely across your business.
3. As a business owner you need to ensure the people you employee and trust are driven to run the business as if it was their own with the same goals you have.
4. Data doesn’t lie so you need to ensure you are selling the dream to the right person in the business (i.e. the person who will benefit the most from the data).
I’m sure we’ve all been there before.