VELOCITY VS VARIABLE

1.

Select all the characteristics of the Velocity Method of inventory management.

Check all that apply.

A firm 30, 45 or 60-day turn policy

Each car should turn to optimize its ROI potential

More turn the better

Every car priced low to move fast

Maximize the opportunity each vehicle holds

2.

Select all the characteristics of the Variable method of inventory management.

Check all that apply.

More turn the better

Driven by data science

Each car should be priced to optimize its unique ROI potential

Recommendations help dealers align pricing to each vehicle’s ROI potential

Every car priced high to move slower

3.

What are the main differences between the Velocity Method of Management and Variable Management?

Check all that apply.

There really isn’t any difference

Velocity follows the calendar, where fresh cars get the highest mark-ups, you reduce asking prices at regular intervals over time; Variable Management recommends Day 1 pricing and repricing appropriate to a vehicle’s real-time ROI potential

Velocity recommends a standard turn rate (e.g., 30, 45, 60 days) for every vehicle; Variable Management recommends optimal Days to Sell for each vehicle based on its investment category (e.g., Platinum, Gold, Silver and Bronze)

Velocity Management gives you market data and metrics to make your own appraising and pricing decisions; Variable Management distills the market data and provides recommendations to help you make appraising and pricing decisions