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Rethinking Age Management

See how you can move from a static age policy to a variable sales policy. Stop asking how long you’re ok with a car sitting. Start asking how long you’re ok with a car selling.

This industry is deeply rooted and cultured in having an age policy, whether you follow it or not. We all understand the wisdom or think we understand the wisdom of age policy. But what I'm going to ask you to do here today now, is to rethink age policy on two dimensions, two levels. And the first level of rethinking age policy that's a tenet of Variable Management is not all vehicles are the same and therefore there should not be a single static policy for every vehicle. Right. If the vehicles all are inherently different, why would we have the same static policy for every vehicle? Does that make sense? I think it just intuitively that doesn't make sense. But that's what we do. We say we have a 60 day age policy applies to all vehicles or 90 or 45 or whatever it is. All vehicles, really? Same policy for all vehicles? They're all different. Why would we? I mean, it's kind of like a blunt instrument, right? It's a really blunt instrument approach, age policy. Same for all cars, in spite of the fact that they're all different. So the first dimension of rethinking age policy is that I would like to move from a static policy to a variable policy. The variable policy, once again, recognizing the inherent unique characteristics and differences of each vehicle's potential. I think that makes sense. And the second dimension that I'd like to ask you to rethink is age versus sale. I mean, why are we willing to let any car age? Why are we even talking about age in cars? Okay, I want to talk about selling cars. So instead of having, you know, a thought process about how long we're willing to let a car age, I want to talk to you now and I want a strategy and a methodology to have an objective of how quickly we want a vehicle to sell. So I want to move from a static age policy to a variable sales policy. And that might sound like a subtle difference to you, but I think the way we think about our business often drives the way we act on our business. And again, every car, different; variable versus the same static. Instead of talking about how long we're okay with a car sitting, want to talk about, how long we're okay with a car selling.
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Select the answer that best completes the following statement featured in the video: Dealerships should move away from a _____________ age policy to a _____________ sales policy.

Dealership mindset should shift from thinking about inventory age to thinking about what?

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50-40-30-20: A Rational Sales Policy

Dive into the Average Days to Sell benchmarks to shoot for on vehicles of varying profit potentials. It’s a model for Variable Management done right.