Many dealers set all time records during the month of May. For a multitude of reasons, I don’t think this level of business will continue, but we should take advantage while we can. As I look at some of the data, the one thing that surprises me is that while sales are increasing, some dealers are also seeing reduced margins. If you are shedding old age inventory, then this is OK, but don’t discount the good stuff!
– Many dealers are running short on prime units
– The OEMs don’t look like they are ramping up for a banner back half of the year
– Customer demand is at all time highs
Supply and Demand. When supply is tight and demand is high, prices (and margins) should increase. Discounting is just a tool for the weak. We still operate in a business where we can make money on the products we sell. Right now, there is no reason that dealers should be giving good product away. Take some time to teach your teams how to close a deal based on the value of your operation.
Coffee is for closers!
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