March '20

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rv-pro.com March 2020 • RV PRO • 107 including a full detail before it is put on the lot and offered for sale. (Many dealerships forbid anyone showing these units until they are cleaned up and ready for sale, as this ensures maximum profits.) The shorter time through service and detail the better. The quicker this unit is sold, the higher the R.O.A.I., as the average inventory amount is lowered with higher turns. For new inventory, dealers are really taking the ordering process to the next level by analyzing their inventory levels every week – not just by type, but by each individual model line. With new units, you can do the calculation mentioned earlier for each make and model. This will give you all the information you need when it comes to ordering (or not ordering) more of the same kind. Improving Your R.O.A.I. What is your sales process? A good, solid sales process will help improve your R.O.A.I. on both new and used. After an initial interview/conversation, sales- people should check with their manager to get a second opinion on what to show their customer. The manager can then direct the salesperson to show the aged units first (remember, the quicker the turn, the better return). Also, when was the last time you and/or your sales manager physically looked at and went inside your units? Your aged used units will really cost you money – they start looking older and older and will depreciate a lot quicker than new ones. I recom- mend a daily walk around the lot, paying close attention to the used inventory. Ask questions such as, why is it still here? What needs repairing on it? Where is it physically on the lot? (Most used are tucked away in the far corner somewhere like a forgotten friend.) Keeping a high R.O.A.I. takes work and focus – the kind that many dealers and managers shy away from. My question is: If you are going to invest heavily in something, shouldn't it pay off? You deserve a good return on your investment. You have a lot invested in your inventory, so now make it work for you. Start by calculating what your total unit inventory R.O.A.I. is. Then, start drilling down – new and used, then by type, then by model. You may be surprised at the wealth of information this provides you to help manage your inventory the best way possible. So, now you know what R.O.A.I. is, the question becomes: Is it important? Let me put it this way: It's probably the most important mea- surement when it comes to making inventory decisions. Figure 1: Measuring R.O.A.I. R.O.A.I. = (GM$) $ Available Income (for period measured – usually 1 year) $ Average Inventory (for period measured) Call or text us for a no-charge evaluation to learn where your greatest opportunities are - (813) 951-6586 Email: info@aworldoftraining.com Reach more RV Pros! EMAIL ADVERTISING INQUIRIES TO: abowe@nbm.com (800) 669-0424 ext. 232 Meet RV PRO's Meet RV PRO's Media Media Consultant Consultant Anthony Anthony Bowe Bowe www.rv-pro.com

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