By: Srisu Subrahmanyam
Everyone knows the saying “time is money,” and we certainly kept it in mind when we were developing new tools for our sellers over the past year. One of the problems we noticed was that sellers were not making optimal reconditioning decisions that could significantly enhance the value of the car and earn them a “return on investment” on their reconditioning investment.
Why? Well, they didn’t have the data insights to make those decisions.
To tackle this, we engaged our data science and analytics team to leverage the millions of data points on vehicles, repairs, sales and pricing that we have across our marketplaces. The result was the creation of a tool that easily showcases service recommendations and the ROI of each recommendation.
This new tool enables sellers to make the quickest and smartest decisions during an extremely hot market with limited supply. Here are some details on how the tool functions and how it can help your business:
- How does it work? The new tool leverages millions of data points on vehicles, repairs, pricing and sales, and arms sellers with actionable and specific repair suggestions that maximize the profit opportunity on the resale of vehicles in the wholesale channel. Alongside the projected ROI, sellers are also able to see how the selected repairs will improve the vehicle grade.
- Is it easy to use? Very easy. It visually displays the cars as recommendations in one central digital location – the ADESA Portal. With a few clicks, sellers can decide which features to move forward with based on several factors like grade improvement, spend and ROI. You can even batch select improvements – saving time while managing numerous vehicles. But most importantly, sellers are always in control of what they want to accept in terms of the recommendations.
- How do you stay within budget? In terms of budget, sellers can set a maximum cost to determine what can be done to the vehicle within budget while driving greater wholesale value. The new tool showcases how specifically tailored repairs and enhancements will improve its vehicle grade, helping vehicles become front-line ready, faster.
- What does it mean for ROI? With bumps in grade improvement, we’re ultimately driving more eyes to the vehicle as many dealers filter by grade when evaluating inventory to purchase.
And, it’s not only our sellers who are reaping the benefits of this new tool. Our buyers are benefitting by receiving retail-ready, higher-quality vehicles, cutting down on cycle times between when they purchase and when they can deliver to their retail customers.
As we continuously evolve the tools and technology we offer to our customers, we’re constantly focused on making wholesale easy so that you can be more successful. You can find more information on the tool on ADESA.com.