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E.N.G. Vehicle Remarketing 2016
The digital transformation: Used car retailperformance management 2.0
Jörg HöhnerGlobal Managing Director INDICATA, Autorola Group
Amsterdam – January 26, 2016
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NO TRIVIAL CHANGEMajor trends changing consumer buying patterns
The internet empowersconsumers
Smartphones and tabletsare game changers
Consumers take theirhomework seriously
Targeted researchresults influence buying
decisions
WWW
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In a time wheresupply and demandchanges faster thanever, data-driveninsights are vital todrive your usedvehicle business togrowth.
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ActionableMetrics &Insights
DATA-DRIVEN INSIGHTSMonitor real-time data to improve used car performance
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O E M• Improve market
transparancy• Monitor and optimise
dealer networkperformance
• Protect and increaseresidual values
• Analyse, manage andreduce risks
D E A L E R• Improve market
transparancy• Optimize used car
operations• Increase stock turn• Analyse, manage and
reduce risks
F L E E T• Improve market
transparancy• Live Portfolio Value
Analysis• Predict future residual
values• Analyse, manage and
reduce risks
DATA-DRIVEN INSIGHTSReal-time data to improve performance
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MARKET DAYSSUPPLY
PRICE TOMARKET
INVENTORYAGE
PRICINGSTRATEGY
STOCKTURN
DATA-DRIVEN INSIGHTSKPIs to guide used vehicle operations success
SHARE OVERFIRST PRICE/
MARKET
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MARKET DAYS SUPPLYMeasures the relationship between supply and demand today
120
SupplyTotal number of vehicles currently available
DemandAverage number of vehicles sold per day
60
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MARKET DAYS SUPPLYHow can Market Days Supply help protect residual values?
VolumeDistribution
PricingStrategy
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105 % 5% above Price to Market100 % Average Price to Market95 % 5 % below Price to Market
Nøgletal
PRICE TO MARKETAssess the price position of your inventory
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Price/Market
MDS
97 50100 74101 15099 217
Price/Market
MDS
101 6098 6095 60- -
Days instock1-30
31-6061-9091+
Typical Ideal
Inventory overview
PRICING STRATEGYKnow when Market Days Supply is in your favour
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Attractive carspriced too low
Identify network dealers whoconsistently price below the
market
Identify network dealerswithout “rational” pricing
strategy
Know when Market DaysSupply is in your favour
„Discount“ dealers Fresh inventorypriced lower than old
Attractive cars pricedtoo low
PRICING STRATEGYTop 3 dealer pricing strategies undermining profitabilty
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GERMAN PREMIUMMANUFACTURER
JAPANESE VOLUMEMANUFACTURER
EUROPEAN VOLUMEMANUFACTURER
1 - 3 0 d a y s
3 1 - 6 0 d a y s
6 1 - 9 0 d a y s
9 1 + d a y s
INVENTORY AGEMinimize the profit harming effects of increased market volatility
24%
13%
13%
50%
28%
15%
12%
45%
29%
18%
13%
40%
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STOCK TURNCareful stock control to improve operational performance
4,65,9
0,0
2,0
4,0
6,0
8,0
10,0
Nov. 2014 Nov. 2015
Profit Impact:€ 25.164
Small Dealer
5,86,7
0,0
2,0
4,0
6,0
8,0
10,0
Nov. 2014 Nov. 2015
Profit Impact:€ 150.685
Mid-size Dealer
6,37,1
0,0
2,0
4,0
6,0
8,0
10,0
Nov. 2014 Nov. 2015
Profit Impact:€ 983.933
Large Dealer Group
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SHARE OVER FIRST PRICE TO MARKETIdentify and manage deprecation risk of your inventory
Avrg.Price/Market
102%
Total InventoryValue
€ 8.426.359
Share Over FirstPrice/Market
37%
Value @ Retail Asking Price € 3.754.629Depreciation Risk Next Month € 56.319
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CASE STUDYPremium Brand Dealership
“Average stockdays reducedby
15%
95%Gross Marginper unit up by
Used car salesgrew
113%YOY
2,1 to3,7
Stock turnincreased from
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CASE STUDYAsian OEM
Apr. 2015 Nov. 2015 Change %
Over aged (>90 days in inventory) 2.348 1.747 -26%
Slow market (MDS >120 days) 1.982 1.564 -21%
Over first price to market 2.218 1.723 -22%
Price not changed recently (>60days)
2.869 2.135 -29%
Too few pictures (<3 pictures) 846 474 -44%
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In a time wheresupply and demandchanges faster thanever, INDICATAdrives your usedvehicle business togrowth.
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IMPROVE YOUR USED VEHICLE OPERATIONSNOW
Request a demo or get startedwith a free trial.
[email protected]+49 (0)40 180 370-0www.indicata.com