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JMsolutions Study Supports AAX Inventory Management System

May 20, 2008

DEERFIELD BEACH, Fla. -– Results of a JMsolutions study revealed that the average dealer who uses its AAX used vehicle inventory management solution can see an average increase in total retail gross and floor plan savings of more than $60,000 per year.

"JMsolutions has long professed the advantages of using AAX and stocking the right, 'core' vehicles at the right price," said Tim Zierden, assistant vice president and general manager, product solutions, JMsolutions.

Core vehicles are units which repeatedly sell faster at higher gross margins for the dealership.

The study, which looked at the performance of more 1,700 AAX dealers, also illustrated that a 10 percent increase in the average dealer’s core inventory units equates to a three-day improvement in retail age at sale and five-day improvement in average inventory age.

"We believe that dealers should be knowledgeable about marketplace pricing but, most importantly, they should look at their own store’s sales history to determine how that vehicle has performed in the past and at what price point," Zierden said.

There are conflicting viewpoints on whether dealers should base used-vehicles pricing according to the pricing in the marketplace, the Internet, or the dealer’s own transactional history. Zierden believes the results of the company's study support the AAX management system and its philosophy of focusing on a dealer's own sales data on core vehicles.

"We show our dealers how to make better pricing decisions using their own data which is a much better indicator of what a vehicle should retail for at their store," said Zierden. "We are confident that we're leading dealers in the right direction with our stocking and pricing methodologies."

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