In this week's VIN-dow podcast, Robert shares where wholesale profits are made and why wholesale is no longer a "dirty" word. The most successful publicly traded companies are not looking to break even wholesale. Find wholesale on their financial statements, and you will find profits. Carvana and Carmax are doing it! Three rules to follow to make a wholesale profit: 1) Buy right to sell right. Make profit when you acquire, not when you sell. Avoid getting welded into trades by having a measurable, repeatable process in place to trade frequently, and at an advantageous price. When you offer what a car is really worth based on its condition, desirability, and history, you avoid getting welded into the trade. 2) Understand the piranha effect. Ask too little, and get too much. Carvana strategically asks too little for cars inducing the "piranha effect". By doing this they convert 99% of the time and avoid bidder fatigue (ie: bidding on cars but experiencing IF bids over, and over, and over again) 3) Leverage your service lane. Acquire challenged cars that you have no interest in retailing. The best opportunity in your dealership? The easiest cars to acquire are the challenged vehicles sitting on your lot. Direct upload the daily RO's into Accu-Trade and have someone printing out live offers on every trade coming through service. You won't go to hell if you make a wholesale profit! Want to learn more about Accu-Trade, check us out www.accu-trade.com.
In this week's VIN-dow podcast, Robert shares where wholesale profits are made and why wholesale is no longer a "dirty" word.
The most successful publicly traded companies are not looking to break even wholesale. Check out their financial statements online. Where you find "wholesale", you will find profits. Carvana and Carmax are doing it!
Three rules to follow to make a wholesale profit:
1) Buy right to sell right. Make profit when you acquire, not when you sell. Avoid getting welded into trades by having a measurable, repeatable process in place to trade frequently, and at an advantageous price. When you offer what a car is really worth based on its condition, desirability, and history, you avoid getting welded into the trade.
2) Ask too little, and get too much. Understand the piranha effect. Carvana strategically asks too little for cars inducing the "piranha effect". By doing this they convert 99% of the time and avoid bidder fatigue (ie: bidding on cars but experiencing IF bids over, and over, and over again)
3) Acquire challenged cars that you have no interest in retailing. Leverage your service lane. The best opportunity in your dealership? The easiest cars to acquire are the challenged vehicles sitting on your lot. Direct upload the daily RO's into Accu-Trade and have someone printing out live offers on every trade coming through service.
You won't go to hell if you make a wholesale profit!
The VIN-dow Podcast is brought to you by Accu-Trade. Do you want to improve your vehicle acquisitions with transactional transparency for your customers? What about the trade-in process?
Developed by the largest independent wholesale dealer in history, Robert Hollenshead. It’s the same tool they use every day to do their job. Every lesson learned from over $20 Billion in transactions and 900 cumulative years in wholesale is built into the platform. All made easy to understand and available for anyone to use.
Robert Hollenshead is a serial entrepreneur, the World's Largest Automotive wholesaler (R. Hollenshead Auto Sales) and visionary behind disruptive automotive industry solutions such as:
Accu-Trade: www.accu-trade.com
Galves Market Data: https://www.galves.com/
MADE Logistics: https://made-logistics.com/
Headstart VMS, LLC: https://www.rhollensheadautosales.com/headstartvms/
MADE Financial: https://www.rhollensheadautosales.com/made-financial/
AutoMoto Social: https://www.automotosocial.com/
AutoMoto HR: https://www.automotohr.com/
WreckCheck.com: https://www.wreckcheck.com/
PuroClenz: https://puroclenz.com
Robert has been and continues to be a game-changing thought leader in the way vehicles are bought and sold today.