Automotive's oldest problem, Solvable or Unsolvable?
After what has seemed like 10 months of Summer, it may actually be Fall after all. For me that means taking my family up to my Dad’s cabin in the Georgia mountains for long weekends. We go on hikes, pick apples, ride ATVs around the trails, my kids love it. And when the weather isn’t suitable to be doing something outside there is always a big table in one corner of the great room with an unfinished puzzle. The last time we were there, my daughter asked me to come help her put it together. When I walked over to the table, the first thing I did was look for the box to figure out what picture we were trying to create but I didn’t see it. I asked her where it was. She laughed and said she didn’t know, that's why she needed help.
There are two broad types of problems in the world. Puzzles and mysteries. The puzzle, is a finite, solvable problem. Assuming you do in fact have all the pieces needed to complete the puzzle all you need is time and a little persistence, it will eventually get put together. Mysteries, on the other hand, may never be solved, no matter how hard or how long you work at them. With my daughter that afternoon the puzzle, because we lost our context, had turned into a bit of a mystery.
Over the last 20 years the car business has evolved rapidly, presenting a seemingly endless supply of problems to consider. Everyday it seems a new trend in consumer behavior is gaining traction. Macro economic factors must be considered as we make long term projections. On and on, a puzzle here, a mystery there. One old and fundamental problem however has plagued dealers consistently over time. What exactly makes a car sell? If we are honest with ourselves the best we can do is make sense of what we know about the business through experience and blend it with the best available data. But we still can’t be certain the car we just bought will sell and turn the way we need it to. So what makes the next vehicle we buy, the “right” one? Is it the fact that it has lower miles that the average car in the market? Could it be the specific package with a specific trim? Maybe it's the color combination? It might be because it has a bad CarFax so you will be able to buy it and in turn sell it cheaper than other similar units? With so many variables at play, it's easy to think that finding the exact right car is a mystery. Until very recently you may have been right.
At Drivably we are providing the context you need to take that mystery and transform it into a puzzle. We are helping dealers everyday leverage that complex matrix of variables and deliver actionable insights that drive profitability. Skeptical? I would love to show you how we are doing it, click here to schedule some time with me to discuss it one on one.