In a time where inventory is hard to come by, dealers are looking at every opportunity to manage inventory more efficiently. Today on CBT News, Scott Dreisbach, owner and operator of Valuinsight, joined Jim Fitzpatrick to talk about the state of inventory in the auto industry. Valuinsight uses tools and training to help dealers make strong inventory decisions and improve their overall process.
Dreisbach opens the conversation by explaining the difficulty of understanding how much a car is worth in the middle of a pandemic. He then explains that growing business starts with managing inventory properly. Valuinsight is data driven to help dealers find the right targets to acquire that create the best opportunity for ROI.
Valuinsight is helping dealers see how the industry is being driven by data. More inventory is not always the answer if that inventory can’t generate the proper ROI.
“It’s all about turning the money,” said Dreisbach. “Some will fall to the bottom line as long as the machine is cranking money through whether it’s retail or wholesale.”
Dealerships that have bought into the mission of Valuinsight are reaping major rewards from the process. After forming a relationship with Valuinsight, a major dealership group in the south Florida region was able to generate an additional $6,359,237 in purchase-related gross profit. After getting fully acclimated to the program, the dealership group brought in an additional $10,787,937 in purchase-related gross profit in 2019. The dealership has continued to see ongoing success with $13 million to this point in 2020.
Dreisbach concludes the conversation by providing his take on the state of the industry amid COVID-19. He says the demand for used-cars is here to stay. With OEMs still struggling to get workers into production plants and commuters avoiding mass transportation, the used-car market is arguably more valuable to dealers now than ever before.
Did you enjoy this interview with Valuinsight’s Scott Dreisbach? Please share your thoughts, comments, or questions regarding this topic with host Jim Fitzpatrick at jfitzpatrick@cbtnews.com.
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