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I find it incredible to believe that 80% of used RV's are sold outside of the dealer network.
This presents an opportunity for those dealers prepared to get involved and work the used market aggressively. You have to want to get involved, as it will take some strong managing as I will cover over the next couple of months.
Firstly, let's start by having the right attitude when a salesperson tells you they have a customer who has a trade. I know, our initial thought is probably "how upside down are they" and I wonder if they can sell it themselves so we are not the ones to upset them when we tell them how much it is really worth.
Let's consider the fact that if we don't take it on trade, our chances of doing business with this customer have just dropped dramatically, so most customers need to trade in order to buy something new.
So how are you going to value it?
As I talk about in the video, most managers will look at wholesale book and back the value down from there.
You first of all have to make the decision - are we going to retail it or wholesale it?
Most times the answer will be to retail it - so let's start thinking about this a little differently.
Think about how much you can sell it for, easily, within the next 30 days. Now back the profit you need to make off that number, along with how much your are going to spend on reconditioning. Now you should have the ACV (Actual Cash Value). Now we can compare our number (after all, we are the experts, not some guide that doesn't buy or sell anything) to make sure we are somewhere in the ballpark.
This may be a different number than we have thought about before, but quite often we get the value wrong by just looking at 80% of NADA wholesale value, and we wonder why we can't get any used to sell!
Change the attitude - available income percentages are higher on used then new, let's go after them aggressively - it is almost impossible for customers to shop used, as every one is unique.
The dealers who focus on used generally are the ones who are able to increase their new sales too!