5 Car Dealer Inventory Merchandising Best Practices
Yes, that blog title is a mouthful and yes, inventory management can be painful. Especially for car dealers that have a million-and-one plates spinning at once.
When push comes to shove, the last thing you want to deal with is inaccurate inventory data streaming itself across the web like the common streaker at a Real Madrid football match.
Sadly, that happens more often than not and it’s costing car dealers millions of dollars in wasted merchandising and marketing efforts annually. Luckily, ARIA is here to streamline inventory management and marketing for car dealers. The mission is simple, remove the pain and breath fresh ai(r) into the mix so that you can focus more of your time doing what you do best. Selling cars.
In this guide, I’m going to share my top 5 car dealer inventory management best practices. If mastered, these will help mitigate the loss of revenue associated with improper vehicle merchandising.
1. Include High Quality Vehicle Photos
You had to have known this is where I’d choose to begin. Having high-quality vehicle photos on your website is one of the easiest and most foundational best practices out there. Take a look at your GA4 website analytics events, and chances are that photo integrations either top the list or are in the top 3 most interacted elements on your website. Having great photos of your inventory is a great step to that perfect first impression of the vehicle. Unclear, small, blurry photos get in the customer’s way and leave them looking elsewhere.
Take the time needed to capture the vehicle and its features from different angles. Especially for used vehicles, don’t be shy about highlighting the true nature of the vehicle’s condition. If there’s a dent or ding, point it out in the photo! The more transparent and open you can be when photographing the vehicle, the better off you’ll be when it comes time to sell.
If you’re in a pinch, as your automated response inventory assistant, I can help merchandise your vehicles quickly by automatically adding color-matched, vin-specific stock photos to your inventory. This is helpful if there is a kink in your internal processes where vehicles wait to long to make their way to the website. By having ARIA add vehicle photos on the fly, you’ll save time and get your inventory listed and syndicated out to all third-parties on autopilot.
2. Vin-Specific Vehicle Descriptions
I know what you’re thinking. Who reads the vehicle descriptions anyway? The short answer? Google. Bing. Other search engines, and yes real car shoppers. Missing descriptions on vehicles leave a deficiency in your dealership’s inventory merchandising strategy and leaves out a big chunk of missing data when it comes to something super nerdy called SCHEMA Markup.
Descriptions should be comprehensive yet easy to read, with bullet points or short paragraphs to highlight key information. Including details about the car's history, such as service records or unique modifications, can add value and reassure potential buyers of the vehicle's quality.
This is another way ARIA can help streamline your inventory management workflows. With a simple command, I tie into your VIN-specific inventory data and craft comprehensive, but simple vehicle descriptions that automatically map to the right vehicle and features. This can be accomplished on autopilot for every new vehicle coming into your IMS (inventory management system) or on the fly — whichever you prefer.
3. Embrace Vehicle Pricing Transparency
It’s no secret that transparent pricing on vehicles leads to faster decision making for car shoppers. The goal is to provide pricing that reflects current market conditions (without getting greedy… you know who you are!) while giving an accurate breakdown of the price online.
Dealerships that clearly display the price, financing options, and any applicable special offers for each vehicle in their inventory build trust and credibility with potential buyers. Transparent pricing helps eliminate confusion and allows consumers to make informed decisions quickly. Additionally, being upfront about costs can reduce the time spent on negotiations, streamline the sales process, and improve customer satisfaction.
Speaking of pricing, did you know that ARIA can help you price vehicles to market appropriately with a simple prompt? ARIA can also keep track of your aging inventory and adjust pricing on the fly for units that are about to age out. It’s all in a day’s work for your automated response inventory assistant.
4. Establish a Robust Online Presence
The big ol’ WWW is the place to research and purchase vehicles, and having a strong online presence is crucial for car dealers. This goes beyond just maintaining a well-designed dealership website. Dealers should also ensure their inventory is listed on various online platforms, including social media, car sales websites, and online marketplaces. Engaging with potential buyers through these channels, posting regular updates, and responding to inquiries promptly can enhance visibility and attract more traffic to the dealership's inventory.
With a simple prompt, ARIA can send your inventory to thousands of online websites handling the speed-to-market that your inventory deserves. The faster to market, the faster to sell, Amaright???
5. Speed To Market With Regular Updates
You shouldn’t have to wait for your listings to get updated with relevant information. Not only that, you shouldn’t have to wait for them to get updated across your syndication network. Speed to market is the name of the game when merchandising inventory, so it’s important that when updates are needed, they happen fast.
A common challenge that ARIA solves is getting a wide variety of updates to happen simultaneously. Think of the hours of work you’ll save when you only have to make one prompt to complete a batch set of actions.
Conclusion
The success of a car dealership in today's market relies heavily on how effectively it merchandises its inventory. High-quality photography, detailed descriptions, pricing transparency, a strong online presence, and the use of advanced inventory management software liked ARIA are critical components of a winning strategy. By focusing on these areas, dealerships can enhance the appeal of their inventory, attract more potential buyers, and ultimately, drive more sales. The automotive sales landscape is continually evolving, and dealers who adopt these best practices will be well-positioned to thrive in the competitive market.
