Day 4

Module 1: Dealership Diagnostics & Quick Wins

The Problem

Every vehicle on your lot that has sat unsold for 60+ days is not inventory—it is a liability. It occupies space. It depreciates. It ties up cash or floorplan credit. And it silently signals to every customer who drives by that your cars do not sell for a reason.

Learning Objective

Implement a systematic liquidation protocol that clears aged inventory within 7 days and prevents future aging through disciplined buying and pricing.

The 30-60-90 Day Framework

Days 0-30: New Inventory (Retail Price)

• Price at 105-110% of market based on comparable listings
• Full marketing push: featured listing, social media, email blast
• Fresh inventory attracts the most interest—capitalize on the new listing bump

Days 31-60: Price Adjustment Zone (Market Price)

• At day 30, reduce price to 100% of market average
• Refresh photos if the originals were poor
• Rewrite the listing description with new angles
• Increase ad spend slightly on these units

Days 61-90: Liquidation Zone (Below Market)

• At day 60, price at 95% of market
• Feature in "Manager's Special" promotions
• Offer to your wholesale network before public liquidation
• Consider selling to another dealer at cost

Day 91+: Emergency Clearance (Cost or Below)

• Price at or below your actual cost
• Run a 48-hour "Inventory Clearance" event
• Wholesale anything not sold within the event window
• Take the loss and reinvest in fresh inventory

The 7-Day Liquidation Event

For your current aged inventory (anything over 60 days), run this event:

Day 1 (Monday): Identify every unit over 60 days. Print a list with cost, current price, and break-even number. Set liquidation prices at cost + $500 or break-even, whichever is higher.

Day 2 (Tuesday): Refresh all online listings for aged units with new photos and descriptions. Mark as "Manager's Special" or "Weekly Special."

Day 3 (Wednesday): Email every prospect who inquired about these units (or similar units) with a "Back on Market" or "Price Reduced" message.

Day 4 (Thursday): Post on social media with urgency messaging. "We need to move 8 units this weekend. First come, first served."

Day 5 (Friday): Call your wholesale network. Offer units at cost to dealers you have relationships with.

Day 6 (Saturday): Aggressive in-lot promotion. Balloons, signage, staff contests for moving aged units.

Day 7 (Sunday): Final push. Anything remaining goes to wholesale Monday morning. No exceptions.

Preventing Future Aged Inventory

Buy Smarter:

• Set a maximum days-supply target (e.g., 45 days) for each acquisition
• If a unit requires $2,000+ in recon, it must have $3,000+ in gross potential
• Avoid high-mileage, niche vehicles unless you have a proven buyer for them

Price Faster:

• Review pricing on every unit every 7 days
• Use market pricing tools (vAuto, CarGurus Instant Market Value, KBB) to stay competitive
• Do not fall in love with gross—fall in love with turn

Track Religiously:

• Weekly aged inventory meeting every Monday morning
• Every unit over 30 days gets a specific action plan
• No unit reaches 60 days without manager sign-off

Today's Action Items

1. Print your current inventory list sorted by days in stock.
2. Identify every unit over 60 days and assign a liquidation price.
3. Schedule your 7-Day Liquidation Event starting this week.
4. Create the weekly aged inventory meeting calendar invite.
5. Set up your 30-60-90 day pricing review system.

Key Takeaway

A $15,000 car that sits for 90 days costs you $500-$750 in floorplan interest, lot space opportunity cost, and depreciation. A $14,500 quick sale puts $1,000 in your pocket and turns your capital again. Turn is the only metric that matters after gross.

Tomorrow's Preview

Day 5 delivers Quick Win #3: the F&I menu presentation that captures back-end profit on every deal.