It’s not too often that someone sells you a product that helps you succeed and then tells you that they’ve created a new strategy that’s even better. But that’s exactly what vAuto founder and pioneer behind the Velocity Method of Management, Dale Pollak, has succeeded in doing with dealers across North America.
TRADER Corporation, in partnership with vAuto, held a complimentary event at the Twenty7 Automobile Club on October 10, 2019. Dealers and OEM’s from the GTA gathered for the afternoon to hear about The New Realities of Today’s Used Car Business and Methods To Combat Margin Compression. The event was live streamed across the country so that dealers could tune in to hear about Dale’s newest philosophy.
At the event Dale unveiled Provision ProfitTime, a new method and metric to used car inventory management that uses investment minded management. He began with a look into US industry trends. In the first six months of 2019, 50% of US dealers had a net loss and 50% of dealers had net positive trending down year over year. Dale pointed out that unfortunately the Canadian market is trending in the same direction.
“I’m convincing every dealer that will listen to manage investments.”
Dale gave the audience a walkthrough of how him and his team discovered Provision ProfitTime and the new math to used car business. ProfitTime shifts a dealer’s perception from calendar days to profit potential. He stated that the calendar holds an assumption, more than 50% of the time the amount of calendar days we hold a vehicle is not the amount of profit potential.
“More than half of your vehicles are bruised bananas. They don’t get better with time; they get worse with time.”
ProfitTime balances the equation by assigning vehicles with a precious metal designation – Bronze, Silver, Gold or Platinum – to identify its profit potential and score vehicles as investments. Based on the metal rating dealers will know whether to price the vehicle to sell or if they can wait a little longer for the right buyer and best ROI (return on investment). Dale related this method to bananas and the rate that they bruise, which really resonated with the audience. With ProfitTime, dealers can expect an increase in volume and turn for maximum total gross in order to cover expenses and create net profit.
“If you can’t stop paying attention to the calendar then there’s no chance.”
While Dale does see dealers greatly improving on the ProfitTime method in the US, he understands that it can’t be for everyone. It takes the right mindset to be able to use the methodology behind the product and even more so, the transition from inventory management to investment management isn’t an easy one. Before concluding he shared with the group that if they choose to use ProfitTime it’s important that they stay in connection with Dale, for added guidance and to maximize their ROI.
Dealers in attendance said that the event and Dale’s presentation was eye opening, honest and informative. Dale showcased his passion for the new solution and dedication for dealers to succeed with their sales. This was appreciated among the crowd as they requested for Dale to come back to Canada and share his insights as much as possible.
For more information on Provision ProfitTime and to apply click here.