Countless decisions get made every day in dealerships based on averages. Popular examples include market day supply, average retail price, average days on lot and average wholesale price. Too often we trust these numbers (simple averages) as if they are the be-all end-all.
After doing something for so long, we begin to take it for granted. We assume the numbers must be right. But what if we’re wrong?
- If all dealers use the same numbers, how do you avoid becoming average?
- What if these averages have been misleading us the whole time?
In our latest research paper, we dig into these issues. We start by highlighting the underlying problem of applying simple averages to a broad range of numbers. Then we delve into the most common and misguided number used by the industry – Market Day Supply (MDS.) The data shows, and the science of averages confirm, that this number is as accurate as flipping a coin.
Finally, we’ll highlight an alternative approach to using the wealth of data generated every day about the automotive markets to help you drive better acquisition and pricing decisions.
To learn more on how averages are costing you profit, download the latest whitepaper from CarStory here. It’s a quick and simple read that will provide answers while helping you avoid a race to the bottom.