We are big believers in data beats algorithms, but that doesn't give full credit to our algorithm development and technology capabilities. We utilized our unique AutoLeg data set to build pricing engines for clients for price optimization during auctions, re-marketing & setting internet asking price. Here are a few simple graphs to show the scale of opportunities in very discrete market segments.
According to Manheim Auto Auctions, dealer re-marketed vehicles contribute more than 45% of overall auction volume & are the largest contributor to auction inventory. Auto auction firms have traditionally used sales force and a “feet on the street” approach to gather auction inventory from dealers. In these uncertain economic times & technological changes, auto auction firms need to innovate & optimize their auto auction inventory procurement techniques.
For example, AutoLeg monitors the dealer inventory of tens of thousands of dealers. It knows which vehicles have passed typical inventory thresholds (e.g. more than 45 or 60 days) and should be ideally re-marketed through auto auction channels. Auto Auction firms can leverage that data and send customized sales & marketing messages to those dealers “alerting” them of their aging inventory and prompting them to re-market those vehicles through your auto auction site.
Some dealers use auto inventory management systems to manage their inventory and re-marketing processes. However, most dealers do not have sophisticated analytical horsepower nor the necessary human resources to optimize their inventory. Auto auction firms can be pro-active in their approach and start reaching out to dealers through simple messaging such as: “Hey, you have X number of cars that have been on your lot for more than 60 days. We have had great success in re-marketing those types of cars through our auction site. Why don’t you re-market through us & reduce your inventory costs”. This simple principle in messaging can become more complex through advanced algorithm driven recommendations based on a variety of factors.
Dealers appreciate this additional value added “Inventory Re-marketing & Optimization Services”. Additionally, the service would typically be provided free to the dealer on behalf of the pro-active push based marketing initiative of the auto auction provider. The value added free service makes it an irresistible service to the dealer. The upside to the auto auction firm is increased procurement leading to higher revenue making it a WIN-WIN situation for both the auto dealer and the auto auction provider.
For more ideas and techniques on re-thinking your auto auction inventory procurement process, email email@example.com
For more background on what AutoLeg does, go here:
The ideal sales person loves getting in front of the customer, talking to their pain point, developing relations, understanding the specific nuances of a customer situation, making a sale & cajoling the rest of the organization to ensure the customer is happy. However, the sales management function, still needs to give direction to the sales force on 1) What customers to focus & 2) Relevant information to address dealers’ pain points. AutoLeg monitors the dealer inventory of tens of thousands of dealers and can help the auto auction sales management team in addressing these issues.
What customers to focus on
Most auto auction companies have generic market share nationally or in their region but they do not know their share of wallet at the dealer level. For instance, sales people may spend in excessive amount of time with customers where they have an 80% share of wallet because they have the best relationships with them. However, they may completely ignore dealers where they have a 10% share of wallet but has the most opportunity to improve their sales. AutoLeg can compare your inventory and match those VINs to the VINs available in the dealer inventory and estimate the share of wallet at the dealer level. This share of wallet can be used for sales segmentation, target and incentive structure to optimize your sales force & revenues.
Relevant information to address dealers’ pain points
Most dealers get pitches from auto auction firms but in a generic manner. However, to target your pitch and improve your sales conversion, sales people can give simple reports showing how a dealers current inventory and past fast selling vehicles are available at your auction site. For instance, AutoLeg can identify a dealer who is more interested in Honda Civics in the mid-price range and mid mileage and compare that to cars with similar characteristics in your auction inventory. A simple report that doesn’t confuse the sales person or dealer can be presented to show the benefits of buying at your auction versus your competitors.
For more ideas and techniques on making your auto auction sales force successful, email firstname.lastname@example.org
For more background on what AutoLeg does, go here:
AutoLeg monitors tens of thousands of dealer websites and collects critical price and inventory information such as make, model, price and mileage. We utilize our unique data set to provide 1) Dealer Focused Databases & Tools 2) Clients who want to utilize our data to enhance their business.
Our dealer clients utilize our data & tools for:
To get your creative juices going, here are some examples on how your business can utilize our data:
In addition to these data sets, we provide two other critical inputs:
To know more about how our data can revolutionize your business, email us at email@example.com